HomeMy WebLinkAbout06-14-2022 - Agenda Pkg - CC Regular MeetingTuesday, June 14, 2022
5:00 PM
City of Hermosa Beach
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
City Council
Mayor
Michael Detoy
Mayor Pro Tem
Raymond Jackson
Councilmembers
Stacey Armato
Mary Campbell
Justin Massey
Regular Meeting Agenda
Hybrid virtual/in-person meetings are held pursuant to AB361
Executive Team
Angela Crespi, Deputy City Manager
Viki Copeland, Finance Director
Myra Maravilla, City Clerk
Paul LeBaron, Chief of Police
Joe SanClemente, Public Works Director
Carrie Tai, Community Development Director
Vanessa Godinez, Human Resources Manager
Lisa Nichols, Community Resources Manager
City Treasurer
Karen Nowicki
City Attorney
Patrick Donegan
Suja Lowenthal, City Manager
1
June 14, 2022City Council Regular Meeting Agenda
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During the meeting, a packet is also available in the Council Chambers foyer or you can access the
packet at our website, www.hermosabeach.org, on your laptop, tablet or smartphone through the
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Page 2 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
5:00 P.M. - CLOSED SESSION
(LOCATION: Meetings convene in the Council Chambers and move to the Second Floor Conference
Room after Public Comment)
CALL TO ORDER IN COUNCIL CHAMBERS
ROLL CALL
PUBLIC COMMENT ON THE CLOSED SESSION AGENDA
Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend
measures to promote social distancing. Members of the public may email comments to
cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date.
IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach
ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09
OR PARTICIPATE BY PHONE:
•Toll Free: 833-548-0276
•Meeting ID: 899 6820 7828, then #
•Passcode: 472825
ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED.
If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when
asked to do so. Comments from the public are limited to 3 minutes per speaker.
RECESS TO CLOSED SESSION IN SECOND FLOOR CONFERENCE ROOM
a)22-0383 MINUTES: Approval of minutes of Closed Session held on May 10, 2022.
b)22-0382 CONFERENCE WITH LABOR NEGOTIATOR
Government Code Section 54957.6
City Negotiator:Labor Attorney Daphne M. Anneet and City Manager
Employee
Organizations:Hermosa Beach Police Officers’ Association
Police Management Bargaining Group
Teamsters Union, Local 911
Professional and Administrative Employee Group
Management Employee Group
Unrepresented Employee Group
RECESS TO OPEN SESSION
Page 3 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
6:00 P.M. - REGULAR AGENDA
Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend
measures to promote social distancing. Members of the public may email comments to
cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date.
IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach
ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09
OR PARTICIPATE BY PHONE:
•Toll Free: 833-548-0276
•Meeting ID: 899 6820 7828, then #
•Passcode: 472825
ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED.
If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when
asked to do so. 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 Clerk’s office by email
(cityclerk@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 agenda packet.
Supplemental materials may be submitted via eComment (instructions below) or emailed to
cityclerk@hermosabeach.gov. Supplemental materials must be received before 3:00 p.m. on the date
of the meeting to ensure Council and staff have the ability to review materials before the meeting.
Supplemental materials submitted after 3:00 p.m. on the date of the meeting but before the meeting
ends will be posted to the agenda packet the next business 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 Agendas/Minutes/Video webpage and find the meeting you would 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 and select the comment button.
3. Sign in to your SpeakUp Hermosa account or submit a comment as a guest. Enter your name and
comment in the fields provided. If you have an account, you may attach files before submitting your
comment.
Page 4 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City 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
VII. PROCLAMATIONS / PRESENTATIONS
a)22-0364 RECOGNIZING LOCAL ARTIST KATY JENSSEN
FOR HER MOSAIC SURFBOARDS
b)22-0361 RECOGNIZING OFFICERS NAKAMOTO AND DEANDRADE
FOR THEIR LIFE SAVING EFFORTS
c)22-0381 RECOGNIZING 2022 HERMOSA BEACH
CERTIFIED GREEN BUSINESSES
VIII. CITY MANAGER REPORT
a)REPORT
22-0365
POLICE CHIEF UPDATE
IX. PUBLIC PARTICIPATION
a)REPORT
22-0386
WRITTEN COMMUNICATION
Recommendation:Staff recommends City Council receive and file the written communication.
X. CITY COUNCILMEMBER COMMENTS
a)REPORT
22-0366
UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES
AND STANDING COMMITTEE DELEGATES/ALTERNATES
XI. CONSENT CALENDAR
Page 5 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
a)REPORT
22-0367
CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
Recommendation:Staff recommends City Council approve the minutes of the City Council Meeting of
Tuesday, May 24, 2022.
b)REPORT
22-0349
CHECK REGISTERS
(Finance Director Viki Copeland)
Recommendation:Staff recommends City Council ratify the following check registers.
c)REPORT
22-0377 ADOPTION OF THE 2022-23 APPROPRIATIONS LIMIT
(Finance Director Viki Copeland)
Recommendation:Staff recommends City Council adopt a Resolution approving and adopting the annual
Appropriations Limit for the Fiscal Year 2022-23.
d)REPORT
22-0362
2020-21 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
(Including Report from Independent Auditor)
(Finance Director Viki Copeland)
Recommendation:Staff recommends City Council receive and file the 2020-21 Annual Comprehensive
Financial Report (ACFR), which includes the report from Gruber and Lopez, Inc., formerly
Gruber and Associates, the City's independent auditors.
e)REPORT
22-0343
LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY
REPORT FOR APRIL 2022
(Emergency Management Coordinator Brandy Villanueva)
Recommendation:Staff recommends City Council receive and file the April 2022 Fire and Ambulance
monthly report.
f)REPORT
22-0369
FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
Recommendation:Staff recommends City Council authorize remote teleconference/virtual meetings of all
City of Hermosa Beach legislative bodies in accordance with Assembly Bill 361 ("AB
361"), by finding that: (1) a statewide state of emergency is currently in place; (2) state
and local officials have imposed or recommended measures to promote social distancing
in connection with COVID-19; and meeting in person would present imminent risks to the
health or safety of attendees.
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June 14, 2022City Council Regular Meeting Agenda
g)REPORT
22-0352
APPROVAL OF AGREEMENT BETWEEN THE CITY OF HERMOSA
BEACH AND THE ROTARY CLUB OF HERMOSA BEACH FOR USE
OF THE CORNER OF 11TH STREET AND VALLEY DRIVE FOR THE
FRIDAY FARMERS MARKET
(Community Resources Manager Lisa Nichols)
Recommendation:Staff recommends City Council:
1. Approve an agreement with the Rotary Club of Hermosa Beach to provide its weekly
Friday farmers market for a three-year term (Attachment 1); and
2. Authorize the Mayor and City Manager to execute and the City Clerk to attest to the
agreement subject to approval by the City Attorney.
h)REPORT
22-0356
APPROVE OCCUPANCY LICENSE FOR COMMUNITY GARDEN
(Environmental Programs Manager Doug Krauss)
Recommendation:Staff recommends City Council:
1. Approve the occupancy license for the Community Garden at South Park (Attachment
1); and
2. Authorize the City Manager to execute and the City Clerk to attest to the agreement
subject to approval by the City Attorney.
i)REPORT
22-0376
APPROVAL OF ROAD REPAIR AND ACCOUNTABILITY
ACT OF 2017 (SENATE BILL 1) PROJECT LIST FOR THE
CITY OF HERMOSA BEACH FOR FISCAL YEAR 2022-23
(Public Works Director Joe SanClemente)
Recommendation:Staff recommends City Council:
1. Approve a resolution (Attachment 1) adopting a list of projects for Fiscal Year
2022-2023 funded by Senate Bill 1 (SB 1) Road Repair and Accountability Act of 2017;
and
2. Direct staff to submit the project list (Attachment 2) and supporting documentation to
the California Transportation Commission by July 1, 2022.
j)REPORT
22-0355
ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF HERMOSA BEACH, CALIFORNIA, DECLARING A
DROUGHT CRITICAL CONDITION AND IMPLEMENTING
DROUGHT RESPONSE LEVEL 2 CONSERVATION
MEASURES PURSUANT TO HERMOSA BEACH MUNICIPAL
CODE SECTION 8.56.090
(Environmental Programs Manager Doug Krauss)
Recommendation:Staff recommends City Council adopt a resolution declaring a Drought Critical Condition
and implementing specified Level 2 conservation measures, pursuant to Hermosa Beach
Municipal Code Chapter 8.56.090.
Page 7 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
k)REPORT
22-0359
PARTICIPATION IN BEACH CITIES TRANSIT (BCT) LINE 109
AGREEMENT, WITH NO REQUIRED FINANCIAL CONTRIBUTION
FROM THE CITY FOR FISCAL YEAR 2022-2023, WITH THE CITIES
OF EL SEGUNDO, MANHATTAN BEACH AND REDONDO BEACH,
FUNDED FROM PROPOSITION A FUNDS
(Interim Community Development Director Angela Crespi)
Recommendation:Staff recommends City Council:
1. Approve participation for one year along with the other beach cities, with no required
financial contribution from the City for Fiscal Year 2022-2023; and
2. Direct the Mayor to sign the Agreement on behalf of the City.
XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE
DISCUSSION
XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M.
a)REPORT
22-0371
ADOPTION OF FISCAL YEAR 2022-23 BUDGET
(Finance Director Viki Copeland)
Recommendation:Staff recommends City Council:
1. Receive public testimony regarding the Fiscal Year 2022-23 Budget (Attachment 1);
2. Approve contracts for services contained in the table herein;
3. Approve the revisions to the Preliminary Budget as shown on pages 5-6; and
4. Adopt a Resolution approving the 2022-23 Budget as presented in Exhibit A
(Attachment 2).
b)REPORT
22-0350
PUBLIC HEARING-HERMOSA BEACH LANDSCAPING
AND STREET LIGHTING DISTRICT FISCAL YEAR 2022-2023
(Public Works Director Joe SanClemente)
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 2022-2023; and
2. Adopt a Resolution (Attachment 1) confirming the diagram and assessment [JS1]found
in the Engineer's Report (Attachment 2) for Hermosa Beach Landscaping and Street
Lighting District 2022-2023 and levying an assessment for the Fiscal Year beginning July
1, 2022 and ending June 30, 2023.
XIV. MUNICIPAL MATTERS
a)REPORT
22-0374
INFORMATION REGARDING THE CITY’S
HISTORIC RESOURCES PRESERVATION PROGRAM
(Interim Community Development Director Angela Crespi)
Recommendation:Staff recommends City Council receive a report regarding the City's historic resources
preservation program and provide staff with feedback regarding the program as desired.
Page 8 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
b)REPORT
22-0373
APPROVAL OF ADDITIONAL REFINEMENTS TO
TEMPORARY OUTDOOR PERMIT PROGRAMS
RELATED TO MAXIMUM ON-STREET DECK AREAS
AND DISCUSSION OF CHANGES TO PIER PLAZA
ENCROACHMENTS
(Environmental Programs Manager Doug Krauss)
Recommendation:Staff recommends City Council:
1. Approve the implementation of short-term refinements to the outdoor dining programs
related to establishing maximum areas of on-street dining decks; and
2. Discuss and provide staff with feedback on potential changes to the temporary
encroachment areas for Pier Plaza businesses.
c)REPORT
22-0379
ADOPTION OF ECONOMIC DEVELOPMENT STRATEGY
(Interim Community Development Director Angela Crespi)
Recommendation:Staff recommends City Council:
1. Receive a staff presentation and public comments;
2. Approve a resolution (Attachment 1) adopting an Economic Development Strategy; and
3. Direct staff to begin work on identified first year implementation priorities.
d)REPORT
22-0358
CALLING AND GIVING NOTICE AND CERTAIN OTHER
RESOLUTIONS NECESSARY FOR HOLDING
THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 8, 2022
(City Clerk Myra Maravilla)
Recommendation:Staff recommends Council:
1. Adopt Resolution calling and giving notice of the election for certain officers and one or
more measures (Attachment 1);
2. Adopt Resolution to permit a special runoff election for elective officers in the event of a
tie vote (Attachment 2);
3. Adopt Resolution to request the County of Los Angeles consolidate the City of
Hermosa Beach General Municipal Election with the Statewide General Election and
render full services to the conduct of the election (Attachment 3); and
4. Adopt Resolution to adopt regulations for candidates for election office pertaining to
candidate statements (Attachment 4).
XV. FUTURE AGENDA ITEMS
a)22-0380 TENTATIVE FUTURE AGENDA ITEMS
XVI. ADJOURNMENT
Page 9 City of Hermosa Beach Printed on 5/25/2023
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June 14, 2022City Council Regular Meeting Agenda
FUTURE MEETINGS AND CITY HOLIDAYS
CITY COUNCIL MEETINGS:
June 28, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
July 12, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
July 21, 2022 -Thursday - Adjourned Regular Meeting:
6:00 PM - Joint meeting with Planning Commission on Housing Forum
July 26, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
August 4, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Study Session
August 9, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
August 23, 2022 - Tuesday - No Meeting (Dark for Summer Break)
September 1, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Study Session
September 13, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
September 27, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
October 11, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
October 22, 2022 -Saturday - Adjourned Regular Meeting:
8:00 AM - City Council Retreat
October 25, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
November 3, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Closed Session, 6:00 PM - Regular Meeting
November 8, 2022 - No meeting due to lack of quorum (General Election)
November 22, 2022 - No meeting due to lack of quorum (Thanksgiving week)
November 29, 2022 -Tuesday - Adjourned Regular Meeting:
5:00 PM - Closed Session, 6:00 PM - Regular Meeting (Installation of new officers)
December 1, 2022 -Thursday - Adjourned Regular Meeting:
6:00 PM - Mayor Transition Ceremony & Reception
December 13, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
December 27, 2022 - Tuesday - No Meeting (Dark for WInter Break)
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June 14, 2022City Council Regular Meeting Agenda
BOARDS, COMMISSIONS AND COMMITTEE MEETINGS:
June 16, 2022 - Thursday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
June 21, 2022 - Tuesday - 6:00 PM - Joint City Council and Planning Commission Meeting
July 5, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
July 19, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
July 20, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting
August 2, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
August 16, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
September 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
September 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
September 21, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting
October 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
October 18, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
November 1, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
November 15, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
November 16 - Wednesday - 6:00 PM - Public Works Commission Meeting
December 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting
December 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting
CITY OFFICES CLOSED FRIDAY-SUNDAY AND ON THE FOLLOWING DAYS:
July 4, 2022 - Monday - Independence Day
September 5, 2022 - Monday - Labor Day
November 24, 2022 - Thursday - Thanksgiving Day
December 26, 2022 - Monday - Christmas Day (observed)
January 2, 2023 - Monday - New Year's Day (observed)
Page 11 City of Hermosa Beach Printed on 5/25/2023
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0383
Honorable Mayor and Members of the Hermosa Beach City Council
Closed Session of June 14, 2022
MINUTES:Approval of minutes of Closed Session held on May 10, 2022.
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0382
Honorable Mayor and Members of the Hermosa Beach City Council
Closed Session of June 14, 2022
CONFERENCE WITH LABOR NEGOTIATOR
Government Code Section 54957.6
City Negotiator:Labor Attorney Daphne M. Anneet and City Manager
Employee
Organizations:Hermosa Beach Police Officers’ Association
Police Management Bargaining Group
Teamsters Union, Local 911
Professional and Administrative Employee Group
Management Employee Group
Unrepresented Employee Group
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0364
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
RECOGNIZING LOCAL ARTIST KATY JENSSEN
FOR HER MOSAIC SURFBOARDS
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0361
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
RECOGNIZING OFFICERS NAKAMOTO AND DEANDRADE
FOR THEIR LIFE SAVING EFFORTS
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0381
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
RECOGNIZING 2022 HERMOSA BEACH
CERTIFIED GREEN BUSINESSES
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0365
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
POLICE CHIEF UPDATE
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0386
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
WRITTEN COMMUNICATION
Recommended Action:
Staff recommends City Council receive and file the written communication.
Attachments:
1.Written Communication from Kent Allen re Budget Workshop
2.Written Communication from Matt McCool re Case #14-764
3.Written Communication from Tony Higgins re eComments
4.Written Communication from Tony Higgins re Reckless Driving on Hermosa Ave
City of Hermosa Beach Printed on 9/12/2022Page 1 of 1
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From:Kent Allen
To:City Clerk; Ann Yang
Subject:Fwd: See attached:
Date:Tuesday, June 7, 2022 11:01:16 AM
Also- please post this email and the link under written communication for the next council
meeting.
Warm regards
Kent Allen
---------- Forwarded message ---------
From: Kent Allen <kentjallen@gmail.com>
Date: Tue, Jun 7, 2022 at 7:29 AM
Subject: See attached:
To: Michael Jenkins <michael.jenkins@bbklaw.com>, <cityclerk@hermosabch.org>, Ann
Yang <anny@hermosabch.org>
Cc: Hermosa Beach City Council <Citycouncil@hermosabch.org>, Kevin Cody
<kevin@easyreadernews.com>
https://www.dropbox.com/s/mo00k0s3c63tevm/Mary%20Ramble.mp4?dl=0
This is out of control and by no means an isolated case. It's been going on for years now and
has gotten worse.
City Clerk: Please see that this clip is added to the next council meeting, I will be speaking to
it under public comments.
During the June 2nd, Fiscal Year 2022-23 Budget Workshop:
1. Mayor Pro Tem Jackson and Councilwoman Armato engaged in regular conversation while
other Councilmembers, City Staff and members of the public were speaking…
2. Councilwoman Armato texted throughout the meeting…
3. Mayor Pro Tem Jackson scrolled to share cell phone messages to Councilwoman Armato…
4. Councilwoman Armato slid her cell phone over to Mayor Pro Tem Jackson…
5. Mayor Pro Tem Jackson shakes his head after Councilwoman Armato says something to
him…
6. Mayor Detoy looks over in disapproval
--
Kent Allen
--
Kent Allen
19
Matt McCool
mccool.matt@gmail.com
(310) 486-9696
May 17, 2022
VIA ELECTRONIC MAIL
Suja Lowenthal
City Manager, Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
RE: Request for investigation into missing police investigation report for case #14-764
Dear Ms. Lowenthal:
I am respectfully requesting the City of Hermosa Beach conduct an investigation into why the Hermosa
Beach Police Department does not have an investigation report for case #14-764. Please see attached
February 14, 2022 email response from Acting Captain Landon Phillips. (Exhibit A.)
A then-Lt. Phillips made official statements regarding my case:
• In 2017, he made false statements to the Easy Reader News about my case while I was serving
as a City official during my campaign for City Council.
• In 2020, he made false statements to the FBI about my case while I was serving as a
contractor with Naval Special Warfare, and a reservist with SEAL Team SEVENTEEN.
How is it even possible for the Hermosa Beach Police Department not to have this investigation report? A
then-Lt. Phillips while being interviewed by the FBI shared my case. Most likely, he had to give the full
case file to the special agent conducting the investigation on me.
Please advise if the City of Hermosa Beach will conduct an investigation as to why the Hermosa Beach
Police Department does not have the investigation report for case #14-764.
Very Respectfully,
Matt McCool
CC: Hermosa Beach City Council, (Via email)
Hermosa Beach Deputy City Manager, Angela Crespi (Via email)
Hermosa Beach Police Chief, Paul LeBaron (Via email)
Hermosa Beach City Clerk, Myra Maravilla (Via email)
20
Exhibit A
21
From: Landon Phillips <lphillips@hermosabeach.gov>
Sent: Monday, February 14, 2022 11:28 AM
To: Matt McCool <mccool.matt@gmail.com>
Cc: 'Roehrick, Steve' <STEVEN.ROEHRICK@NCIS.NAVY.MIL>; Dorothy Scheid
<dscheid@hermosabeach.gov>; Paul LeBaron <plebaron@hermosabeach.gov>; Suja Lowenthal
<suja@hermosabeach.gov>; City Clerk <cityclerk@hermosabeach.gov>
Subject: Re: [Document Released to Requester] City of Hermosa Beach public records request #21-79
Good morning Mr. McCool,
We do not have a report from Detective Smith related to the 2014 incident.
Regards,
Landon Phillips | Acting Captain
Hermosa Beach Police Department
540 Pier Ave. Hermosa Beach, CA 90254
o: 310-318-0336
e: lphillips@hermosabeach.gov
hermosabeach.gov/police
We exist so Hermosa Beach can be the safest little beach city through partnerships,
integrity and excellent service.
22
From:tony higgins
To:City Clerk
Cc:City Council; Suja Lowenthal; Angela Crespi; Michael Jenkins; DG_PlanningCommission
Subject:Written Communication to City Council- Using eComment to improve public participation on non agenda items
Date:Tuesday, June 7, 2022 9:31:54 AM
Dear City Clerk -
Please accept this as a written communication to the city council
START WRITTEN COMMUNICATION HERE:
Date: June 7, 2022
Subject: Using eComment to improve public participation access for non agenda items
Dear Councilmembers
In the earlier email I point out that eComment is a useful tool to solicit more timely public comment. I received no response.
Plan Hermosa makes numerous references to elements of good governance that encourages the broadest possible public participation.
For instance page 48 of Plan Hermosa says:
The Hermosa Beach community prides itself on being highly active in its own governance, and the City is committed to actively seeking public participation.
Conversely, our City Manager has clearly stated her desire to mute and minimize public participation as it relates to written communications to the City Council on non
agenda items.
Not only did she recommend disallowing written communications on non agenda items but she recommended that written communications be limited to the number of words
that could be said in 3 minutes.
This is a thinly veiled effort to mute detailed criticism and firmly control the narrative.
It’s simply oppressive tactic.
There is an easy improvement the city could make.
The current policy requires written communications to be submitted one week in advance of the council meeting.
An eComment button under the Public Participation section of the Council meeting agenda would allow written comments on non agenda items just hours before
the meeting and after the agenda has been published.
The picture below shows this has already been implemented in granicus in the planning commission agenda.
I used this eComment feature (see red aarow below) to make an eComment on a Planning Commission non-agenda item without any technical problems.
Why can’t this feature that allows for more timely public comment on non agenda items be implemented for council meetings too?
See red arrow below
Planning Commission Agenda WITH eComment:
23
Council Meeting Agenda WITHOUT eComment (see yellow circle):
24
Thank you for considering this.
Anthony Higgins
25
From:tony higgins
To:City Clerk
Cc:Paul LeBaron
Subject:Re: Written Communication to City Council on HBPD handling Reckless driving and doughnuts on Hermosa Ave
Date:Tuesday, June 7, 2022 11:53:22 AM
On Edit below. Sorry
Dear City Clerk,
Please add this item as my second written communication to the city council
START WRITTEN COMMUNICATION HERE:
June 7, 2022
Dear Council Members
Subject: Re: Reckless driving and doughnuts on Hermosa Ave
I saw a crime report recently where drivers were doing
doughnuts on Hermosa Ave.
Personally I believe the city needs to crack down on
street take-overs, racing, doing doughnuts on Hermosa
Ave and all other forms of reckless driving.
The crime report I read left me with the impression that
the perpetrators were not arrested nor were their vehicles
impounded.
The crime report said the drivers were just issued tickets,
the HBPD was praised for their quick response (self
assessment?) and then the officers sent the offenders on
their way.
At least that is what I thought I read!
Well if so the HBPD may as well have
pulled out a welcome mat for reckless
unruly drivers!
26
My cursory understanding is that the HBPD under the
CVC could have arrested the drivers for reckless driving
and impounded the vehicles AND failing to do so just
sent the message that racing, doing doughnuts on
Hermosa Ave the aggressive driving of obnoxiously loud
vehicles up and down our streets at all hours of the night
would be tolerated with minimal consequences.
Here is the CVC 23109.2 section I’m referring to. If my
interpretation of the law and the facts surrounding this
crime is correct; and these reckless drivers could have
been arrested and had their vehicles impounded then I
would like to know why this wasn’t done?
The council needs to publicly ask Chief Lebaron why this wasn’t done and tell the
Chief and our community at large that any form of reckless driving WILL result
in an arrest, an arrest record and not just a ticket and vehicle impoundment not a
slap on the wrist.
23109.2. (a) (1) Whenever a peace officer determines
that a person was engaged in any of the activities set
forth in paragraph (2), the peace officer may
immediately arrest and take into custody that person
and may cause the removal and seizure of the motor
vehicle used in that offense in accordance with Chapter
10 (commencing with Section 22650). A motor vehicle
so seized may be impounded for not more than 30 days.
(2) (A) A motor vehicle speed contest, as described in
subdivision (a) of Section 23109.
(B) Reckless driving on a highway, as described in
subdivision (a) of Section 23103.
(C) Reckless driving in an offstreet parking facility, as
described in subdivision (b) of Section 23103.
If I got my facts wrong and the drivers were arrested
and/or vehicles impounded I apologize profusely.
While I understand that you might not want to saddle an obviously sober wide-
eyed teenager with an arrest record for reckless driving; many of the drivers I see
speeding up and down our streets are full blown adults and I believe in most cases
the city should take a hard stand of any reckless driving in our city; and the
perpetrators should be punished with an arrest and vehicle impoundment.
27
We don’t need to be pulling out the welcome mat for
reckless drivers and obnoxiously loud vehicles that
plague our residential neighborhoods at all hours of
the night AND the City Council needs to weigh in on
this with Chief LeBaron.
Anthony Higgins
28
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0366
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES
AND STANDING COMMITTEE DELEGATES/ALTERNATES
City of Hermosa Beach Printed on 6/9/2022Page 1 of 1
powered by Legistar™29
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0367
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
Recommended Action:
Staff recommends City Council approve the minutes of the City Council Meeting of Tuesday,May 24,
2022.
Attachments:
1. May 24, 2022 Regular City Council Meeting Minutes
Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Printed on 9/12/2022Page 1 of 1
powered by Legistar™30
City Hall
1315 Valley Drive
Hermosa Beach, CA
90254
City of Hermosa Beach
Meeting Minutes
City Council
Mayor
Michael Detoy
Mayor Pro Tem
Raymond Jackson
Councilmembers
Stacey Armato
Mary Campbell
Justin Massey
6:00 PMTuesday, May 24, 2022
Hybrid virtual/in-person meetings are held pursuant to AB361
Closed Session - None
Open Session - 6:00 PM
I. CALL TO ORDER
Mayor Detoy called the meeting of Tuesday, May 24, 2022 to order at 6:08
p.m.
Mayor Detoy held a moment of silence to honor the recent lives lost due to
the mass shooting in Uvalde, Texas and Buffalo, New York.
II. PLEDGE OF ALLEGIANCE
The pledge of allegiance was led by Randy Renner.
III. ROLL CALL
Mayor Detoy, Mayor Pro Tempore Jackson, Councilmember Armato,
Councilmember Campbell, and Councilmember Massey
Present:5 -
Absent:0
IV. CLOSED SESSION REPORT
None.
V. ANNOUNCEMENTS - UPCOMING CITY EVENTS
Mayor Detoy provided a report on the upcoming City events: Fiesta
Hermosa and the Memorial Day Celebration.
Page 1City of Hermosa Beach Printed on 6/9/2022
31
May 24, 2022City Council Meeting Minutes
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.
A motion was made by Councilmember Armato, seconded by Councilmember
Campbell, to approve the agenda. The motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
VII. PROCLAMATIONS / PRESENTATIONS
22-0346a.COVID-19 HEALTH UPDATE FROM
BEACH CITIES HEALTH DISTRICT
Jacqueline Sun, Director of Well-Being Services for Beach Cities Health
District, gave a COVID-19 health update presentation.
Councilmember Massey had questions regarding transmission rates.
Jacqueline Sun responded to questions made by Councilmember Massey.
22-0336b.PROCLAMATION DECLARING JUNE 2022 AS
PRIDE MONTH IN HERMOSA BEACH
Mayor Detoy presented the proclamation for Pride Month 2022.
Mayor Detoy invited Randy Renner, Jose Bacallao, and Jessica
Accamando to the podium to provide remarks on Pride Month 2022 in
Hermosa Beach.
c.22-0337 PRESENTATION ON COMMUNITY SURVEY
Richard Bernard, FM3 Research representative, presented the results of
the community survey that took place between March and April 2022.
City Council made comments regarding voter education, survey results,
FM3 as a business, and the availability of the presentation.
Richard Bernard, responded to councilmember questions and comments..
City Manager Suja Lowenthal responded to councilmember questions and
comments.
Public comments were provided by:
Trent Larson
Page 2City of Hermosa Beach Printed on 6/9/2022
32
May 24, 2022City Council Meeting Minutes
Carolyn Petty
Gary Brown
Heidi Swan
Andrea Valcourt
Matt McCool
Russ Gilbert
Laura Pena
Dency Nelson
Kent Allen
Ann Gotthoffer
Richard Bernard addressed questions raised by members of the public
during public comment.
VIII. CITY MANAGER REPORT
City Manager Suja Lowenthal provided a City Manager Report.
22-0328a.POLICE CHIEF UPDATE
Police Chief Paul LeBaron provided an update on police operations and
events.
Councilmember Campbell had questions regarding street car racing.
Councilmember Massey made comments regarding e-bikes.
Chief LeBaron responded to councilmember comments and questions.
IX. PUBLIC PARTICIPATION -- ORAL AND WRITTEN COMMUNICATIONS FROM THE
PUBLIC.
a.REPORT
22-0348
WRITTEN COMMUNICATION
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem
Jackson, to receive and file Written Communication. The motion carried by the
following vote:
Aye:Mayor Detoy, Jackson, Campbell, and Massey4 -
Absent:Armato1 -
X. CITY COUNCILMEMBER COMMENTS:
Mayor Detoy requested a clarfication regarding e-mailed comments
submitted to the City Council.
City Manager Suja Lowenthal provided clarifying comments to Mayor
Detoy's inquiry regarding e-mailed comments..
Page 3City of Hermosa Beach Printed on 6/9/2022
33
May 24, 2022City Council Meeting Minutes
Mayor Detoy provided further clarification on communications received
from the public.
Councilmember Massey responded to public comments made about
transparency.
City Manager Lowenthal shared how to access e-comments on the
agenda.
22-0329a.UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES
AND STANDING COMMITTEE DELEGATES/ALTERNATES
XI. CONSENT CALENDAR
Approval of the Consent Calendar
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem
Jackson, to approve the Consent Calendar Items a - o. The motion carried by the
following vote:
Aye:Mayor Detoy, Jackson, Campbell, and Massey4 -
Absent:Armato1 -
a.REPORT
22-0330
CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
A motion was made to approve recommendation on the Consent Calendar.
b.REPORT
22-0334
CHECK REGISTERS
(Finance Director Viki Copeland)
A motion was made to approve recommendation on the Consent Calendar.
c.REPORT
22-0342
MEMORANDUM REGARDING
REVENUE REPORT, COVID-19 REVENUE REPORTS,
EXPENDITURE REPORT, AND CIP REPORT BY PROJECT
FOR MARCH 2022 AND APRIL 2022
(Finance Director Viki Copeland)
A motion was made to approve recommendation on the Consent Calendar.
d.REPORT
22-0340
MEMORANDUM REGARDING
CITY TREASURER’S REPORT AND CASH BALANCE REPORT
(City Treasurer Karen Nowicki)
A motion was made to approve recommendation on the Consent Calendar.
Page 4City of Hermosa Beach Printed on 6/9/2022
34
May 24, 2022City Council Meeting Minutes
e.REPORT
22-0341
CANCELLATION OF CERTAIN CHECKS
(City Treasurer Karen Nowicki)
A motion was made to approve recommendation on the Consent Calendar.
f.REPORT
22-0339
CAPITAL IMPROVEMENT PROGRAM STATUS REPORT
AS OF MAY 12, 2022
(Public Works Director Joe SanClemente)
A motion was made to approve recommendation on the Consent Calendar.
g.REPORT
22-0324
ACTION MINUTES OF THE PUBLIC WORKS COMMISSION
MEETING OF MARCH 16, 2022
(Public Works Director Joe SanClemente)
A motion was made to approve recommendation on the Consent Calendar.
h.REPORT
22-0315
ACTION MINUTES OF THE ECONOMIC DEVELOPMENT
COMMITTEE
MEETING OF MAY 2, 2022
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar.
i.REPORT
22-0316
PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar.
j.REPORT
22-0317
ACTION MINUTES OF THE PLANNING COMMISSION
REGULAR MEETING OF MAY 17, 2022
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar.
k.REPORT
22-0331
FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
A motion was made to approve recommendation on the Consent Calendar.
l.REPORT
22-0344
SOUTH BAY WORKFORCE INVESTMENT BOARD
QUARTERLY SUMMARY
A motion was made to approve recommendation on the Consent Calendar.
Page 5City of Hermosa Beach Printed on 6/9/2022
35
May 24, 2022City Council Meeting Minutes
m.REPORT
22-0332
ENDORSEMENT OF ARAKELIAN ENTERPRISES, INC
(DBA ATHENS SERVICES) REQUEST FOR AN ANNUAL
RATE ADJUSTMENT TO THE MAXIMUM RATES
FOR SOLID WASTE SERVICES
(Environmental Programs Manager Douglas Krauss )
A motion was made to approve recommendation on the Consent Calendar.
n.REPORT
22-0311
PURCHASE OF POLICE DEPARTMENT VEHICLES
(Police Chief Paul LeBaron)
A motion was made to approve recommendation on the Consent Calendar.
o.REPORT
22-0345
APPROVAL OF A REQUEST TO REVISE THE CLASS
SPECIFICATION FOR Geographic Information Systems/Information
Technology Analyst AND TO AFFIRM THE BARGAINING UNIT AS
PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
(Human Resources Manager Vanessa Godinez)
A motion was made to approve recommendation on the Consent Calendar.
XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION
None.
XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M.
None.
XIV. MUNICIPAL MATTERS
a.REPORT
22-0326
CITY STAFF RECOMMENDATIONS ON CANNABIS POLICY
OPTIONS
(City Manager Suja Lowenthal)
City Manager Suja Lowenthal presented the staff report.
City Attorney Michael Jenkins outlined the options available to the City
Council.
Councilmember Massey made a comment about the negotiations process
the proponents shared with the City.
City Attorney Michael Jenkins responded to Councilmember Massey's
comment.
Public comments were provided by:
Page 6City of Hermosa Beach Printed on 6/9/2022
36
May 24, 2022City Council Meeting Minutes
Carolyn Petty
Heidi Swan
Cammie Herbert
Trent Larson
Tom Bakaly
Damian A. Martin
Russ Gilbert
Johnathan Cvetko
Sandy Seamann
Matt McCool
Andrea Valcourt
Laura Pena
Barry Walker
Mayor Detoy closed public comment.
City Clerk Myra Maravilla conducted a roll call and announced a quorum. All
Councilmembers were present.
Councilmember Massey made comments regarding the withdrawal
proposal and the ban on the delivery of cannabis in the City.
City Manager Suja Lowenthal responded to Councilmember Massey's
comments.
A motion was made by Councilmember Armato, seconded by Councilmember
Campbell, to oppose the cannabis industry sponsored initiative filed with the City
Clerk on November 17, 2021. The motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
City Council deliberated on lifting the delivery ban of cannabis in the City,
voter education, the cannabis initiative, coordinating a campaign, and a
potential tax measure.
City Manager Suja Lowenthal gave an explanation of the industry initiative
and made comments regarding voter education and lifting the delivery ban
of cannabis in the City.
City Attorney Michael Jenkins gave an explanation regarding a potential tax
measure and stated a resolution would be presented to the City Council to
place the ballot measure on the ballot. Four votes would be required to
place it on the ballot.
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem
Jackson, to direct staff to begin preparations to submit a ballot measure to the
voters at the General Municipal Election to be held on November 8, 2022, adding
a business license tax on cannabis sales should the ban be lifted. The motion
Page 7City of Hermosa Beach Printed on 6/9/2022
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May 24, 2022City Council Meeting Minutes
carried by the following vote:
Aye:Jackson, Campbell, and Massey3 -
No:Mayor Detoy, and Armato2 -
Absent:0
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem
Jackson, to bring back ordinance language to lift the ban on the delivery of
cannabis into the city. The motion carried by the following vote:
Aye:Jackson, Campbell, and Massey3 -
No:Mayor Detoy, and Armato2 -
Absent:0
Mayor Pro Tem Jackson spoke.
City Manager Suja Lowenthal spoke.
A motion was made by Councilmember Campbell, seconded by Councilmember
Armato, to direct staff to develop an informational impact report for educational
purposes covering policy, safety, and health considerations. The motion carried
by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
The City Council recessed at 10:49 p.m.
The City Council reconvened.
A motion was made by Councilmember Massey, seconded by Councilmember
Campbell to extend the City Council meeting to 11:30 p.m. The motion carried by
the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
b.REPORT
22-0333
EXTENSION OF TEMPORARY OUTDOOR
PERMIT PROGRAMS AND DOWNTOWN LANE
RECONFIGURATION AND UPDATE ON
DEVELOPMENT OF PERMANENT PROGRAMS
(Environmental Programs Manager Doug Krauss)
Environmental Programs Manager Doug Krauss provided a staff report.
The City Council made comments regarding business awareness, parking
spaces, unutilized dining decks, public spaces, encroachment fees,
CEQA, and other comments regarding dining decks.
Page 8City of Hermosa Beach Printed on 6/9/2022
38
May 24, 2022City Council Meeting Minutes
City Manager Suja Lowenthal made comments regarding bringing back
encroachment fees at a future meeting.
Environmental Programs Manager Doug Krauss responded to City
Council's comments and questions.
City Manager Suja Lowenthal spoke.
Public comments were provided by:
Matt McCool
Laura Pena
Sandy Seamann
A motion was made by Councilmember Campbell, seconded by Councilmember
Armato, to:
1. Introduce and adopt by four-fifths vote Ordinance No. 22-XXXXU titled, "An
Urgency Ordinance of the City of Hermosa Beach, California, extending a
Temporary Permit Program for Outdoor Dining/Seating and Outdoor Retail
Display to Assist Restaurants, Food, and Retail Establishments During Covid-19;
and Extending Temporary Lane Closures to Accommodate Outdoor Permits; and,
Setting Forth the Facts Constituting Such Urgency;
2. Receive and provide feedback on the update to the development of permanent
versions of the outdoor permit and downtown lane reconfiguration programs,
and provide feedback on the charging of fees; and
3. Approve the implementation of short-term refinements to the outdoor dining
programs.
The motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
A motion was made by Councilmember Massey, seconded by Councilmember
Campbell to extend the City Council meeting until 12:00 a.m. midnight. The
motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
c.REPORT
22-0323
AWARD OF A CONTRACT FOR LANDSCAPE MAINTENANCE
SERVICES TO MERCHANTS LANDSCAPE SERVICES, INC.
(Public Works Director Joe SanClemente)
Public Works Director Joe SanClemente presented the staff report.
There was no public comments for this item.
A motion was made by Councilmember Massey, seconded by Councilmember
Armato, to:
1. Award a contract for landscape maintenance services to Merchants Landscape
Services, Inc. in the amount of $2,173,789 over four years beginning July 1, 2022
and ending June 30, 2026, with an option to extend for one additional year;
Page 9City of Hermosa Beach Printed on 6/9/2022
39
May 24, 2022City Council Meeting Minutes
2. Authorize the Director of Public Works to establish a $50,000 per year project
contingency for a total amount of $200,000;
3. Authorize the City Manager to approve contract amendments up to the amount
of the approved project contingency.
4. Authorize the reappropriation of $31,876 from the 2021-22 Budget for
Prospective Expenditures to the 2022-23 Budget and transfer of $10,000 from the
General Fund to the Lighting/Landscaping/Medians Fund; and
5. Authorize the Mayor to execute and the City Clerk to attest the proposed
agreement subject to approval by the City Attorney.
The motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
d.REPORT
22-0327
AWARD A CONTRACT FOR JANITORIAL SERVICES
TO VALLEY MAINTENANCE CORP
(Public Works Director Joe SanClemente)
Public Works Director Joe SanClemente presented the staff report.
Mayor Detoy made comments regarding public restrooms.
There was no public comment for this item.
A motion was made by Councilmember Armato, seconded by Councilmember
Campbell, to:
1. Award a contract for janitorial services to Valley Maintenance Corp in the
amount of $610,992 over four years beginning July 1, 2022 and ending June 30,
2026 with an option to extend for one additional year;
2. Authorize the Director of Public Works to establish a $10,000 per year project
contingency for a total amount of $40,000;
3. Authorize the City Manager to approve contract amendments up to the amount
of the approved project contingency; and
4. Authorize the Mayor to execute and the City Clerk to attest the proposed
agreement subject to approval by the City Attorney.
The motion carried by the following vote:
Aye:Mayor Detoy, Jackson, Armato, Campbell, and Massey5 -
Absent:0
FUTURE AGENDA ITEMS
a.22-0347 TENTATIVE FUTURE AGENDA ITEMS
XVI. ADJOURNMENT
Mayor Detoy adjourned the meeting at 11:50 p.m. to the Thursday, June 2,
2022 Fiscal Year 2022-2023 Budget Workshop at 5:00 p.m.
Page 10City of Hermosa Beach Printed on 6/9/2022
40
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0349
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
CHECK REGISTERS
(Finance Director Viki Copeland)
Recommended Action:
Staff recommends City Council ratify the following check registers.
Attachments:
1.Check Register 5/11/2022
2.Check Register 5/18/2022
3.Check Register 5/25/2022
4.Check Register 6/1/2022
Respectfully Submitted by: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Printed on 9/12/2022Page 1 of 1
powered by Legistar™41
05/11/2022
Check Register
CITY OF HERMOSA BEACH
1
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99681 5/11/2022 ABRAMS, SAMUEL H Parcel 4185 011 011 STREET LIGHT TAX REBATE FY2114090
105-3105 24.61
Total : 24.6114090
99682 5/11/2022 AMERICAN GUARD SERVICES, INC. INV49693 CROSSING GUARD SERVICES/APR2220685
146-2102-4201 19,307.34
Total : 19,307.3420685
99683 5/11/2022 ATHENS SERVICES 12178019 SWEEPING SERVICES/APR2216660
001-3104-4201 16,844.52
001-3301-4201 11,225.47
001-3304-4201 1,546.74
001-6101-4201 1,649.27
STEAM CLEANING/APR2212178019A
001-3301-4201 5,493.72
001-3304-4201 1,427.64
SCRUBBER SERVICES/APR2212178019B
001-3301-4201 4,970.84
001-3304-4201 764.74
Total : 43,922.9416660
99684 5/11/2022 ATHENS SERVICES 12228141 PD SHREDDING SERVICES/MAY2216660
001-2101-4309 45.39
Total : 45.3916660
99685 5/11/2022 BARROWS, PATRICK PO 37524 INSTRUCTOR PAYMENTS17271
001-4601-4221 4,484.20
INSTRUCTOR PAYMENTSPO 37525
001-4601-4221 3,181.50
Total : 7,665.7017271
99686 5/11/2022 BENSON, MARY ANN Parcel 4182 019 005 STREET LIGHT TAX REBATE FY2120396
105-3105 24.61
Total : 24.6120396
99687 5/11/2022 BRAUN LINEN SERVICE Acct 70664/April 22 PRISONER LAUNDRY MAINT/APR2200163
001-2101-4306 251.18
Total : 251.1800163
Attachment 1 42
05/11/2022
Check Register
CITY OF HERMOSA BEACH
2
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99688 5/11/2022 CAPITAL WHOLESALE LIGHTING April 2022 ELECTRICAL MAINT SUPPLIES/APR2221720
105-2601-4309 1,207.24
Total : 1,207.2421720
99689 5/11/2022 CDWG W893620 MAT REQ#583933 PRINTER TONER/INK09632
001-2101-4306 504.47
MAT REQ#768425 PRINTER TONER/INKX011319
715-1206-4305 165.54
MAT REQ#768424 PRINTER TONER/INKX049555
715-1206-4305 416.37
Total : 1,086.3809632
99690 5/11/2022 CHARM-TEX, INC.0275427-IN TWO JAIL MATTRESSES19277
001-2101-4306 317.80
Total : 317.8019277
99691 5/11/2022 CLEAN ENERGY CE12490303 COMPRESSED NATURAL GAS/APR2209694
715-3109-4310 49.63
Total : 49.6309694
99692 5/11/2022 COLUMBIA CASCADE COMPANY 54272-67 GREENBELT EXERCISE EQUIPMENT18396
001-6101-4309 8,355.00
001-6101-4309 604.68
Total : 8,959.6818396
99693 5/11/2022 COMMERCIAL BUILDING MANAGEMENT 68846 CITYWIDE JANITORIAL MAINT/APR2220627
001-4204-4201 6,861.00
157-2702-4201 4,296.44
Total : 11,157.4420627
99694 5/11/2022 COMPLETES PLUS Acct 284080 Apr22 VEHICLE MAINT/REPAIR PARTS/APR2209436
715-2101-4311 889.18
715-3302-4311 402.91
715-4201-4311 31.61
715-4204-4311 157.44
715-2101-4309 4.26
715-3104-4311 -17.52
715-3109-4311 238.77
Total : 1,706.6509436
43
05/11/2022
Check Register
CITY OF HERMOSA BEACH
3
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99695 5/11/2022 DEPARTMENT OF JUSTICE 577120 MAT REQ 973990/FINGERPRINTING/APR2200364
001-1203-4251 322.00
Total : 322.0000364
99696 5/11/2022 DEPARTMENT OF TRANSPORTATION SL220389 SIGNAL/LIGHT MAINT/JUL21-SEPT2100267
105-2601-4251 2,343.36
Total : 2,343.3600267
99697 5/11/2022 DEWEY PEST CONTROL Acct 759408 PEST CONTROL/MAY 2211449
001-4204-4201 849.00
Total : 849.0011449
99698 5/11/2022 EMERGENCY RESPONSE CRIME SCENE T2022-244 CLEAN & DISINFECT JAIL CELL 4.25.2216922
001-2101-4201 750.00
Total : 750.0016922
99699 5/11/2022 FAMILY THEATRE INC PO 37529 INSTRUCTOR PAYMENTS16932
001-4601-4221 1,155.00
Total : 1,155.0016932
99700 5/11/2022 FEDERAL EXPRESS CORP 7-748-05309 MAT REQ#973989/EXPRESS MAIL01962
001-1203-4201 40.55
Total : 40.5501962
99701 5/11/2022 FEDEX OFFICE 101660200005 MAT REQ#583803 PRINTING SERVICES06293
001-1101-4305 141.88
Total : 141.8806293
99702 5/11/2022 FEHR & PEERS 152479 TRAFFIC COUNTS/JAN2221539
001-3104-4201 1,782.50
Total : 1,782.5021539
99703 5/11/2022 FRONTIER 310-318-0113-1203155 EOC ANALOG LINES/MAY2219884
715-1206-4304 1,244.78
Total : 1,244.7819884
99704 5/11/2022 FRONTIER 310-372-6373-0311045 PERSONNEL FAX LINE/MAY2219884
001-1203-4304 60.11
Total : 60.1119884
44
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4
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99705 5/11/2022 FRONTIER 310-318-8751-0128095 CASHIER TAP LINES/MAY2219884
001-1204-4304 56.65
Total : 56.6519884
99706 5/11/2022 HARTZOG & CRABILL, INC.22-0176 ON-CALL TRAFFIC ENGINEERING SVS/MAR2214204
001-3104-4201 935.00
Total : 935.0014204
99707 5/11/2022 HERMOSA AUTOMOTIVE INC 51262 MAT REQ#768705/SMOG CHECK/CERTIFICATE09136
715-2101-4311 60.00
Total : 60.0009136
99708 5/11/2022 IK CONSULTING, LLC IK-HB0422 ACCELA CONSULTING SVS/APR 2222222
715-4201-4201 145.00
Total : 145.0022222
99709 5/11/2022 INDUSTRIAL TIRE SERVICE INC 99072 TIRES FOR THE BACKHOE19507
161-3109-4309 1,851.05
Total : 1,851.0519507
99710 5/11/2022 IPS GROUP INC INV71348 PARKING METER/CREDIT CARD FEES/APR2219314
001-3302-4201 18,972.72
Total : 18,972.7219314
99711 5/11/2022 K9 SERVICES LLC HBPD-27 K9 OFFICER MAINT TRAINING/APR2221552
170-2105-4317 250.00
Total : 250.0021552
99712 5/11/2022 LEVINE, ISABELLA Citation 38013423 CITATION REFUND - DISMISSED22601
001-3302 38.00
Total : 38.0022601
99713 5/11/2022 MAGNUM VENTURE PARTNERS PO 37533 INSTRUCTOR PAYMENTS18274
001-4601-4221 8,893.50
INSTRUCTOR PAYMENTSPO 37534
001-4601-4221 5,250.00
Total : 14,143.5018274
99714 5/11/2022 MALINOWSKI, JOSEPH M Parcel 4187 015 026 STREET LIGHT TAX REBATE FY2116556
105-3105 24.61
45
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5
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 24.61 99714 5/11/2022 MALINOWSKI, JOSEPH M16556
99715 5/11/2022 MV CHENG & ASSOCIATES INC 04302022 TEMP BUDGET ANALYST/APR2222444
001-2101-4201 7,345.00
Total : 7,345.0022444
99716 5/11/2022 NV5, INC 249010 SEWER IMPROVEMENT SVS/NOV2121033
160-8421-4201 8,120.00
SEWER IMPROVEMENT SVS/DEC21253813
160-8421-4201 11,340.00
SEWER IMPROVEMENT SVS/JAN22257625
160-8421-4201 15,855.00
SEWER IMPROVEMENT SVS/FEB22259954
160-8421-4201 3,920.00
LIGHTING & LANDSCAPE STUDY/MAR22264952
105-2601-4201 940.00
SEWER LEVY ASSISTANCE/MAR22264958
160-3102-4201 12,600.00
Total : 52,775.0021033
99717 5/11/2022 ODP BUSINESS SOLUTIONS, LLC 239680639001 MAT REQ 838520/OFFICE SUPPLIES13114
157-2702-4305 37.66
001-4201-4305 62.26
MAT REQ 791079/OFFICE SUPPLIES240322962001
001-1208-4305 172.42
INK CARTRIDGES240727243001
001-4202-4305 397.56
001-4202-4305 37.77
OFFICE CHAIR241515626001
001-4202-4305 145.67
001-4202-4305 13.84
Total : 867.1813114
99718 5/11/2022 PARS 50563 ALT RETIREMENT PLAN ADMIN FEE/MAR2214693
001-1101-4185 6.80
001-1204-4185 0.63
001-3302-4185 3.15
001-4204-4185 5.90
001-4101-4185 6.59
46
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6
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99718 5/11/2022 (Continued)PARS14693
001-4201-4185 6.59
001-4601-4185 105.64
Total : 135.3014693
99719 5/11/2022 PETTY CASH PO 37550 PETTY CASH/JAN 22- APR2218547
001-1201-4315 40.00
001-1204-4305 43.79
001-2101-4305 75.85
001-4101-4305 173.74
001-4202-4305 9.84
001-4601-4201 20.00
001-4601-4308 100.00
001-6101-4309 78.84
170-2105-4201 50.00
715-2101-4311 8.26
715-4206-4309 23.43
001-2101-4313 108.64
001-4601-4305 25.19
Total : 757.5818547
99720 5/11/2022 PROVIDENCE MEDICAL GuarantorID600000285 MAT REQ#973991/PRE-EMPLOYMENT PHYSICALS01911
001-1203-4320 719.00
Total : 719.0001911
99721 5/11/2022 R3 CONSULTING GROUP 117277 SOLID WASTE MARKET/SVS ANALYSIS/APR2222538
001-2149 4,132.50
Total : 4,132.5022538
99722 5/11/2022 RECWEST OUTDOOR PRODUCTS, INC.20255 MEMORIAL BENCH20603
001-6101-5402 2,217.00
001-6101-5402 178.03
MEMORIAL BENCH PLAQUE20267
001-6101-5401 217.00
001-6101-5401 16.63
Total : 2,628.6620603
99723 5/11/2022 RED SECURITY GROUP, LLC 75699 MAT REQ#874766/LOCKSMITH SERVICES13255
001-3301-4309 290.16
47
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CITY OF HERMOSA BEACH
7
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 290.16 99723 5/11/2022 RED SECURITY GROUP, LLC13255
99724 5/11/2022 RICHIE, JOHNATHAN PO 37537 INSTRUCTOR PAYMENTS20932
001-4601-4221 4,448.50
Total : 4,448.5020932
99725 5/11/2022 RYDER, LISA R PO 37556 GREEN BUSINESS PROGRAM SVS/JAN-MAR2216970
001-1201-4201 6,000.00
Total : 6,000.0016970
99726 5/11/2022 SAFEWAY INC VONS 722628-042122-3517 MAT REQ#586935/SURFERS WALK OF FAME16425
001-4601-4308 204.38
Total : 204.3816425
99727 5/11/2022 SHERWIN-WILLIAMS 4767-9 MAT REQ 638770/PAINTING SUPPLIES17903
001-3104-4309 146.97
Total : 146.9717903
99728 5/11/2022 SITEONE LANDSCAPE SUPPLY, LLC Cust#129138 Apr22 LANDSCAPING SUPPLIES/APRIL 22 STMT19829
001-6101-4309 1,750.64
Total : 1,750.6419829
99729 5/11/2022 SOUTHERN CALIFORNIA EDISON CO 700382668983 ELECTRICITY/3.29.22-4.27.2200159
001-3104-4303 795.15
105-2601-4303 2,912.86
001-4204-4303 1,568.47
Total : 5,276.4800159
99730 5/11/2022 SPECTRUM BUSINESS 8448300300046247 CITY HALL CABLE/MAY 2220236
715-4204-4201 114.87
Total : 114.8720236
99731 5/11/2022 STERICYCLE 3005981714 MEDICAL WASTE DISPOSAL/MAY2210412
001-2101-4201 78.75
Total : 78.7510412
99732 5/11/2022 SWA GROUP INC 189066 LANDSCAPING DESIGN SVS/JAN2222203
001-4202-4201 12,000.00
LANDSCAPING DESIGN SVS/FEB22189300
001-4202-4201 9,000.00
48
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8
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99732 5/11/2022 (Continued)SWA GROUP INC22203
LANDSCAPING DESIGN SVS/MAR22189681
001-4202-4201 3,026.39
Total : 24,026.3922203
99733 5/11/2022 T-MOBILE Acct 946625962 RECORDS/WATCH COMMAND/CELLS/APR2219082
001-2101-4304 13.29
Total : 13.2919082
99734 5/11/2022 UNDERGROUND SERVICE ALERT 420220319 UNDERGROUND SERVICE ALERT/APR2208207
160-3102-4201 84.25
Total : 84.2508207
99735 5/11/2022 ZUMAR INDUSTRIES INC 96657 MAT REQ 583759/STREET SIGN MAINTENANCE01206
001-3104-4309 281.28
MAT REQ 583760/STREET SIGN MAINTENANCE96688
001-3104-4309 483.71
MAT REQ 583761/STREET SIGN MAINTENANCE96689
001-3104-4309 608.71
Total : 1,373.7001206
7812457 5/5/2022 PITNEY BOWES INC 5.11.22 Check Run POSTAGE METER REFILL/MAY2213838
001-1208-4305 1,000.00
Total : 1,000.0013838
Bank total : 255,060.90 56 Vouchers for bank code :boa
255,060.90Total vouchers :Vouchers in this report 56
49
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CITY OF HERMOSA BEACH
9
4:53:10PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
"I hereby certify that the demands or claims covered by the
checks listed on pages 1 to 9 inclusive, of the check
register for 5/22/2022 are accurate funds are available for
payment, and are in conformance to the budget."
By
Finance Director
Date 5/11/22
50
05/18/2022
Check Register
CITY OF HERMOSA BEACH
1
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99736 5/18/2022 ARCHITAG LLP 2017-16 CLARK BLDG RENO SVS/APR2222108
301-8689-4201 3,500.00
Total : 3,500.0022108
99737 5/18/2022 AT&T 960 461-1985 555 7 PD COMPUTER CIRCUITS/MAY2200321
001-2101-4304 239.57
Total : 239.5700321
99738 5/18/2022 BARNACLES BAR & GRILL 03222022 REFUND DEPOSIT-STREET DECK REMOVED22610
001-2110 5,000.00
Total : 5,000.0022610
99739 5/18/2022 BLUE PEAK IMPORT INC 03222022 REFUND DEPOSIT-STREET DECK REMOVED22609
001-2110 1,666.66
Total : 1,666.6622609
99740 5/18/2022 CANON BUSINESS SOLUTIONS, INC 122282516 COMM RESOURCES COPIER INSPECTION10838
715-1208-4201 100.00
Total : 100.0010838
99741 5/18/2022 CDWG R903493 ADOBE RENEWAL FOR 202209632
715-1206-4201 5,709.00
PC FOR DEP CITY CLERK IN COUNCIL CHAMBERW717984
715-1206-5401 785.13
715-1206-5401 72.96
Total : 6,567.0909632
99742 5/18/2022 COUNTY OF LOS ANGELES C0010406 FIRE PROTECTION SERVICES/JUN2220781
001-2202-4251 492,878.00
180-2202-4251 3,588.52
301-2202-5601 31,643.03
Total : 528,109.5520781
99743 5/18/2022 CPRS DISTRICT 9 INV-6 CPRS D9 AWARDS INSTALLATION19981
001-4601-4317 170.00
Total : 170.0019981
99744 5/18/2022 DEWEY PEST CONTROL Account 1233239 SEWER RAT ABATEMENT/MAY 2211449
160-3102-4201 278.00
Attachment 251
05/18/2022
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CITY OF HERMOSA BEACH
2
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 278.00 99744 5/18/2022 DEWEY PEST CONTROL11449
99745 5/18/2022 DISPENSING TECHNOLOGY CORP 14601 COLD ASPHALT PATCH13766
001-3104-4309 1,017.01
001-3104-4309 87.78
Total : 1,104.7913766
99746 5/18/2022 DUNN-EDWARDS CORPORATION 2167088680 MAT REQ#638775/PAINT SUPPLIES19935
001-6101-4309 71.20
Total : 71.2019935
99747 5/18/2022 FEDEX OFFICE Order#101604YQ31 MAT REQ#768504 PRINTING SERVICES06293
001-1101-4305 6.58
Total : 6.5806293
99748 5/18/2022 FOSTER-GORDON MANUFACTURING CO 35087 CITY COUNCIL PRESENTATION FOLDERS07910
001-1101-4305 894.81
Total : 894.8107910
99749 5/18/2022 HONDA MD INC, STEPHAN T 00139820 DETAINEE BLOOD DRAW/APR2215141
001-2101-4201 254.40
Total : 254.4015141
99750 5/18/2022 INTERWEST CONSULTING GROUP INC 78193 CIP 669-CONSTRUCTION MGMT/APR2221849
301-8669-4201 17,500.00
Total : 17,500.0021849
99751 5/18/2022 IPS GROUP INC INV71737 PARKING METER PARTS19314
715-3302-5401 2,685.36
715-3302-5401 251.94
Total : 2,937.3019314
99752 5/18/2022 KEYSTONE UNIFORM DEPOT 068615 OFFICER UNIFORMS - JULIEN20359
001-2101-4314 29.95
001-2101-4314 3.07
OFFICER UNIFORMS - JULIEN068632
001-2101-4314 1,338.12
001-2101-4314 128.44
Total : 1,499.5820359
52
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CITY OF HERMOSA BEACH
3
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99753 5/18/2022 M6 CONSULTING INC 2107 PLAN CHECKS/APR2219487
001-4202-4201 6,245.00
PLAN CHECKS/SKECHERS PROJ/APR222108
001-2148 222.50
Total : 6,467.5019487
99754 5/18/2022 MARTIN CHEVROLET 818381 MAT REQ 768712/FLEET MAINT PARTS15912
715-2101-4311 39.78
Total : 39.7815912
99755 5/18/2022 MERCHANTS LANDSCAPE SERVICES 59827 CITYWIDE LANDSCAPING SVS/APR2218071
001-6101-4201 21,200.00
MEDIANS/PARKWAY LANDSCAPE SVS/APR2259828
105-2601-4201 3,600.00
Total : 24,800.0018071
99756 5/18/2022 MID-CITY MAILING SERVICES CORP 27007 SEWER LEVY FEE INCREASE NOTICE16541
160-3102-4201 5,694.89
Total : 5,694.8916541
99757 5/18/2022 MIG 0075142 CLIMATE CHANGE CONSULTANT/APR2218437
146-8101-4201 1,692.00
Total : 1,692.0018437
99758 5/18/2022 MORROW-MEADOWS CORP 11260 GENERATOR @ 35TH ST-SCE OUTAGE22509
161-3109-4201 939.56
Total : 939.5622509
99759 5/18/2022 NETRIX LLC DI-000238 DATTO SERVER CLOUD LIC/APR2211539
715-1206-4201 1,957.55
Total : 1,957.5511539
99760 5/18/2022 NV5, INC 269711 SEWER LEVY ASSISTANCE/APR2221033
160-3102-4201 5,250.00
Total : 5,250.0021033
99761 5/18/2022 ODP BUSINESS SOLUTIONS, LLC 243342800001 MAT REQ 838521/OFFICE SUPPLIES13114
001-4101-4305 14.22
MAT REQ 838521/OFFICE SUPPLIES243343366001
001-4101-4305 8.74
53
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CITY OF HERMOSA BEACH
4
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99761 5/18/2022 (Continued)ODP BUSINESS SOLUTIONS, LLC13114
MAT REQ 838521/OFFICE SUPPLIES243343366002
001-4101-4305 76.64
MAT REQ 583582/OFFICE SUPPLIES243619120001
001-4202-4305 64.19
MAT REQ 583935/OFFICE SUPPLIES243886369001
001-2101-4305 58.34
MAT REQ 583936/OFFICE SUPPLIES243897378001
001-2101-4305 65.11
Total : 287.2413114
99762 5/18/2022 ONWARD ENGINEERING 6314 INSPECTION SVS SKECHERS TUNNEL/APR2221596
001-2148 17,020.00
Total : 17,020.0021596
99763 5/18/2022 REDONDO BEACH, CITY OF 575156 CITY PROSECUTOR SERVICES/APR2203282
001-1132-4201 16,667.00
Total : 16,667.0003282
99764 5/18/2022 SITEONE LANDSCAPE SUPPLY, LLC 117500115-001 MAT REQ 638568/LANDSCAPING SUPPLIES19829
001-6101-4309 227.44
Total : 227.4419829
99765 5/18/2022 SOCAL GAS 170-781-3287 9 YARD CNG STATION FUEL/APR2200170
715-3104-4310 147.73
715-4204-4310 147.73
715-6101-4310 147.72
Total : 443.1800170
99766 5/18/2022 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/4.6.22-5.5.2200159
105-2601-4303 66.12
ELECTRICITY/3.29.22-4.27.22700156101336
001-4204-4303 10,680.39
001-6101-4303 259.30
ELECTRICITY/3.29.22-4.27.22700222378305
001-6101-4303 1,667.34
ELECTRICITY/4.6.22-5.5.22700234897163
001-3304-4303 2,598.26
ELECTRICITY/4.6.22-5.5.22700304673105
54
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Check Register
CITY OF HERMOSA BEACH
5
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99766 5/18/2022 (Continued)SOUTHERN CALIFORNIA EDISON CO00159
160-3102-4201 81.48
ELECTRICITY/MAR22 - APR22700313445137
105-2601-4303 22,967.74
Total : 38,320.6300159
99767 5/18/2022 TIREHUB LLC 27159883 MAT REQ 768715/VEHICLE TIRES21146
715-2101-4311 630.72
MAT REQ 768716/VEHICLE TIRES27159890
715-2101-4311 419.52
MAT REQ 768717/VEHICLE TIRES27159898
715-2101-4311 419.52
Total : 1,469.7621146
99768 5/18/2022 TRANSTECH ENGINEERS, INC 20215694 WIRELESS PLAN CHECKS/APR22 PROJ22030915901
001-4202-4201 840.00
WIRELESS PLAN CHECKS/APR22 PROJ22031020215695
001-4202-4201 840.00
WIRELESS PLAN CHECKS/APR22 PROJ22031120215696
001-4202-4201 840.00
Total : 2,520.0015901
99769 5/18/2022 TRIFORMIS CORPORATION 4006996 COUNTERTOP COMPOST CONTAINERS22536
001-1201-4201 679.04
001-1201-4201 64.51
Total : 743.5522536
99770 5/18/2022 UNION BANK OF CALIFORNIA, PARS #6746019200PO 37008 PARS/OPEB CONTRIBUTIONS/MAY2214528
001-1101-4190 54.00
001-1121-4190 560.00
001-1201-4190 2,224.00
001-1202-4190 1,334.00
001-1203-4190 537.00
001-1204-4190 956.00
001-2101-4190 19,276.00
001-3104-4190 896.00
001-3301-4190 102.00
001-3302-4190 2,793.00
001-4101-4190 1,408.00
55
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Check Register
CITY OF HERMOSA BEACH
6
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99770 5/18/2022 (Continued)UNION BANK OF CALIFORNIA, PARS #674601920014528
001-4201-4190 1,282.00
001-4202-4190 1,395.00
001-4204-4190 664.00
001-4601-4190 835.00
001-6101-4190 845.00
105-2601-4190 171.00
160-3102-4190 251.00
161-3109-4190 183.00
715-4206-4190 423.00
Total : 36,189.0014528
99771 5/18/2022 UNITED SITE SERVICES 114-12453292 ADDED SINK @SOUTH PARK/SEPT2118753
301-8669-4201 436.21
SUPPLIES FOR ADDED SINK @SOUTH PARK114-12516812
301-8669-4201 19.01
ADDED SINK @SOUTH PARK/OCT21114-12553951
301-8669-4201 408.53
ADDED SINK @SOUTH PARK/NOV21114-12644256
301-8669-4201 408.53
ADDED SINK @SOUTH PARK/DEC21114-12731157
301-8669-4201 408.53
ADDED SINK @SOUTH PARK/JAN22114-12812304
301-8669-4201 408.53
ADDED SINK @SOUTH PARK/FEB22114-12895891
301-8669-4201 438.53
ADDED SINK @SOUTH PARK/MAR22114-12977716
301-8669-4201 438.53
Total : 2,966.4018753
99772 5/18/2022 UPTIME COMPUTER SERVICE 32459 MONTHLY PRINTER MAINTENANCE/JUN2204768
715-1206-4201 587.38
Total : 587.3804768
99773 5/18/2022 US ARMOR 37396 CONCEALABLE ARMOR VEST-LORATTA09374
001-2101-4350 762.00
001-2101-4350 50.17
Total : 812.1709374
56
05/18/2022
Check Register
CITY OF HERMOSA BEACH
7
5:21:52PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99774 5/18/2022 ZUMAR INDUSTRIES INC 96726 MAT REQ 638935/STREET SIGN MAINTENANCE01206
001-3104-4309 573.67
MAT REQ 638941/STREET SIGN MAINTENANCE96727
001-3104-4309 552.98
Total : 1,126.6501206
5182022 5/18/2022 EXXON MOBIL BUSINESS FLEET 80810902 VEHICLE FUEL 04/11/22-05/10/2210668
001-1250 121.54
715-3302-4310 1,935.63
715-2101-4310 7,119.73
715-4204-4310 515.15
715-4206-4310 189.00
715-6101-4310 580.08
715-3104-4310 666.74
Total : 11,127.8710668
Bank total : 747,249.08 40 Vouchers for bank code :boa
747,249.08Total vouchers :Vouchers in this report 40
"I hereby certify that the demands or claims covered by the
checks listed on pages 1 to 7 inclusive, of the check
register for 5/18/2022 are accurate funds are available for
payment, and are in conformance to the budget."
By
Finance Director
Date 5/18/22
57
05/25/2022
Check Register
CITY OF HERMOSA BEACH
1
5:35:54PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
72288 5/24/2022 SOCAL GAS 097 904 5900 3 CITY-OWNED BLDGS/NATURAL GAS/APR2200170
001-4204-4303 106.91
Total : 106.9100170
72359 5/24/2022 SOCAL GAS 102 104 5900 3 CITY-OWNED BLDGS/NATURAL GAS/APR2200170
001-4204-4303 88.77
Total : 88.7700170
72573 5/24/2022 SOCAL GAS 115 404 6900 1 CITY-OWNED BLDGS/NATURAL GAS/APR2200170
001-4204-4303 158.07
Total : 158.0700170
72927 5/24/2022 SOCAL GAS 139 104 4600 7 CITY-OWNED BLDGS/NATURAL GAS/APR2200170
001-4204-4303 14.30
Total : 14.3000170
72981 5/24/2022 SOCAL GAS 141 204 4600 1 CITY-OWNED BLDGS/NATURAL GAS/APR2200170
001-4204-4303 19.75
Total : 19.7500170
99775 5/25/2022 4IMPRINT 9889424 PROMO ITEMS FOR FIESTA HERMOSA16513
001-3302-4201 5,180.00
001-3302-4201 474.53
Total : 5,654.5316513
99776 5/25/2022 AT&T MOBILITY 287298411168X0510202 PD/CSO CELL PHONES/APR2213361
001-2101-4304 1,547.18
001-3302-4304 142.98
Total : 1,690.1613361
99777 5/25/2022 AT&T MOBILITY 287016141723X0514202 PW DIRECTOR/INSPECTOR CELL PHONES/APR2213361
001-4202-4304 164.63
Total : 164.6313361
99778 5/25/2022 AT&T MOBILITY 287301168383X0510202 EMERGENCY MANAGER CELL PHONE/APR2213361
001-1201-4304 49.07
Total : 49.0713361
99779 5/25/2022 BEEDY, JIM PO 37593 REIMBURSEMENT-AXEL FOR PD ATV21282
Attachment 3 58
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Voucher Date Vendor Invoice Description/Account Amount
99779 5/25/2022 (Continued)BEEDY, JIM21282
715-2101-4311 256.44
Total : 256.4421282
99780 5/25/2022 BEST BEST & KRIEGER LLP 931235 GENERAL CITY ATTORNEY SVS/MAR 2220942
001-1131-4201 19,417.50
ATTNY SVS/PUBLIC RECORDS REQUESTS/MAR22931236
001-1131-4201 15,094.00
ATTNY SVS/COVID EMERGENCY RESP/MAR 22931237
157-2702-4201 4,325.50
ATTNY SVS/ADA/DISABILITY ISSUES/MAR 22931238
001-1203-4201 6,601.00
CITY ATTORNEY SVS/LAND USE/MAR 22931239
001-1131-4201 5,186.50
CITY ATTNY SVS/ROTH V. TRAN/MAR 22931240
705-1133-4201 1,016.00
CITY ATTNY SVS/FANGARY V CITY HB/MAR 22931241
705-1133-4201 6,639.60
CITY ATTNY SVS/MUZATKO V CITY HB/MAR 22931242
705-1133-4201 16,848.44
CITY ATTNY SVS/HUMAN RESOURCES/MAR 22931243
001-1203-4201 3,465.00
CITY ATTNY SVS/TELECOMMUNICATIONS/MAR 22931244
001-1131-4201 2,007.50
CITY ATTNY SVS/PW CONSTRUCTION/MAR 22931245
001-1131-4201 1,127.50
Total : 81,728.5420942
99781 5/25/2022 BLUE DIAMOND MATERIALS 2661028 MAT REQ 583594/ASPHALT06409
001-3104-4309 104.50
Total : 104.5006409
99782 5/25/2022 BLUMENFIELD, DALTON PO 37622 SPRING 2022 TUITION REIMBURSEMENT21651
001-2101-4317 3,288.72
Total : 3,288.7221651
99783 5/25/2022 CALIFORNIA MARKING DEVICE 7009 MAT REQ 583841/NAMEPLATES00262
001-2101-4305 72.27
59
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 72.27 99783 5/25/2022 CALIFORNIA MARKING DEVICE00262
99784 5/25/2022 CDWG X508452 MAT REQ 583943 PRINTER TONER/INK09632
001-2101-4305 994.19
Total : 994.1909632
99785 5/25/2022 CEROFECI, RONETTE Parcel 4169 027 033 SEWER/STREET LIGHT REBATE FY2122602
001-6871 126.60
105-3105 24.61
Total : 151.2122602
99786 5/25/2022 CERVANTES, JAIME L.4132 CORING/JACK HAMMER TOOL REPAIR20855
001-3104-4309 1,994.36
001-3104-4309 135.31
Total : 2,129.6720855
99787 5/25/2022 COLANTUONO, HIGHSMITH &51751 LEGAL SERVICES/UUT LAWSUIT/APR2221871
705-1133-4201 148.66
Total : 148.6621871
99788 5/25/2022 CWE CORPORATION 22090 LOT C REPAIR PLANS/NOV21-JAN2217920
301-8699-4201 100,844.90
LOT C REPAIR PLANS/FEB-MAR2222177
301-8699-4201 23,271.90
Total : 124,116.8017920
99789 5/25/2022 DAVIS, CHRISTINA PO 37579 INSTRUCTOR PAYMENT CLASSES THRU 5/25/2222389
001-4601-4221 10,760.91
Total : 10,760.9122389
99790 5/25/2022 DEPARTMENT OF TRANSPORTATION SL220993 SIGNAL/LIGHT MAINT/JAN22-MAR2200267
105-2601-4251 3,281.12
Total : 3,281.1200267
99791 5/25/2022 DEUTSCH, MELINDA PO 37596 REFUNDS PERMITS-03517-GP,08986-VP,08987-VP22608
001-3843 120.00
Total : 120.0022608
99792 5/25/2022 EVANS, MARLIN K.PO 37580 INSTRUCTOR PAYMENT/CLASS NO. 993615059
001-4601-4221 248.18
60
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 248.18 99792 5/25/2022 EVANS, MARLIN K.15059
99793 5/25/2022 FEDEX OFFICE 101604Z0J1 MAT REQ 768505 PRINTING SERVICES06293
001-1101-4305 22.34
Total : 22.3406293
99794 5/25/2022 FLORES, ANTHONY PO 37624 SPRING 2022 TUITION REIMBURSEMENT20842
001-2101-4317 3,240.00
Total : 3,240.0020842
99795 5/25/2022 FONOIMOANA, TOA ACCT#001-00857905 REFUND DEPOSIT-STREET DECK REMOVAL22614
001-2110 1,000.00
Total : 1,000.0022614
99796 5/25/2022 FRONTIER 209-188-4669-714985 LANDLINES/COMPUTER LINKS/MAY2219884
001-3302-4304 87.79
001-2101-4304 893.66
001-4204-4321 234.06
001-4202-4304 62.29
001-3304-4304 62.11
001-1204-4304 60.11
715-1206-4304 1,473.92
Total : 2,873.9419884
99797 5/25/2022 FRONTIER 209-190-0013-1206175 PD COMPUTER CIRCUITS/MAY2219884
001-2101-4304 906.48
Total : 906.4819884
99798 5/25/2022 FRONTIER 323-155-6779-0822065 FIBER OPTIC LINE/MAY2219884
715-1206-4201 227.41
Total : 227.4119884
99799 5/25/2022 FRONTIER 310-318-9210-0827185 PD JAIL BREATHALYZER/MAY2219884
001-2101-4304 79.02
Total : 79.0219884
99800 5/25/2022 FRONTIER 310-379-0652-1216195 EOC LANDLINES/MAY2219884
001-1201-4304 68.55
Total : 68.5519884
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Voucher Date Vendor Invoice Description/Account Amount
99801 5/25/2022 FRONTIER 310-372-6186-0831895 2ND FLOOR CANON FAX/MAY2219884
001-1121-4304 12.79
001-1141-4304 12.79
001-1201-4304 12.79
001-1202-4304 12.79
001-1203-4304 12.77
Total : 63.9319884
99802 5/25/2022 GALLATIN INVESTIGATIONS 2022-0003 BACKGROUND CHECK/HOWES22096
001-2101-4201 1,236.00
POLYGRAPH EXAM/HOWES2022-0003P
001-2101-4201 200.00
Total : 1,436.0022096
99803 5/25/2022 GHD, INC.380-0013316 PIER REPAIR PROJECT/APR2220756
122-8629-4201 8,022.75
Total : 8,022.7520756
99804 5/25/2022 GRAINGER 9313912173 MAT REQ 768723/MAINTENANCE SUPPLIES10836
715-4206-4311 48.65
MAT REQ 583590/MAINT SUPPLIES9315490798
001-4202-4305 355.04
Total : 403.6910836
99805 5/25/2022 HARTZOG & CRABILL, INC.22-0285 ON-CALL TRAFFIC ENGINEERING SVS/APR2214204
001-3104-4201 1,346.68
Total : 1,346.6814204
99806 5/25/2022 HATCH, BRYAN S Parcel 4186 019 037 STREET LIGHT & SEWER TAX REBATE/FY2121413
001-6871 126.60
105-3105 24.61
Total : 151.2121413
99807 5/25/2022 HINDERLITER DE LLAMAS AND ASSC SIN017445 SALES/USE TAX AUDIT SVS/APR-JUN2207547
001-1202-4201 1,855.40
Total : 1,855.4007547
99808 5/25/2022 IOPREDICT, INC.1479 REC SUPERVISOR ONLINE EXAM22540
001-1203-4201 390.00
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 390.00 99808 5/25/2022 IOPREDICT, INC.22540
99809 5/25/2022 JOHN L HUNTER AND ASSOC INC HB1MS412203 MUNI STORM WATER PROG ADMIN/MAR2205356
161-3109-4201 2,172.50
Total : 2,172.5005356
99810 5/25/2022 K9 SERVICES LLC HBPD-28 FOOD FOR K9 CHARLIE21552
170-2105-4309 47.00
170-2105-4309 3.41
Total : 50.4121552
99811 5/25/2022 KELLY SPICERS INC 2904720 COPIER/PRINTER PAPER 8.5X11 #150111622502
001-1208-4305 1,720.00
001-1208-4305 154.41
Total : 1,874.4122502
99812 5/25/2022 LA COUNTY REGISTRAR RECORDER PO 37578 CEQA EXEMPTION-CIP 629 MUNI PIER REPAIRS22615
122-8629-4201 75.00
Total : 75.0022615
99813 5/25/2022 LA SUPERIOR COURT - TORRANCE PO 37626 CITATION PAYMENT SURCHARGES/APR2200118
001-3302 47,146.20
Total : 47,146.2000118
99814 5/25/2022 LA UNIFORMS & TAILORING INC 12430 MAT REQ 583940/PD UNIFORMS/OFF. HONDA20771
001-2101-4314 1,109.50
Total : 1,109.5020771
99815 5/25/2022 LANDIS, LUCILLE Incident 128339 AMBULANCE TRANSPORT FEE REFUND22611
001-3840 156.13
Total : 156.1322611
99816 5/25/2022 LAW OFFICE OF C PATRICK HAMBLI 5876 LEGAL SVS PERSONNEL/MAR2222299
001-1203-4201 544.50
Total : 544.5022299
99817 5/25/2022 LE, KATHERINE PO 37605 REFUND PARKING PERMIT#07521-E22571
001-3843 143.00
Total : 143.0022571
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Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99818 5/25/2022 LIEBERT CASSIDY WHITMORE 215570 CLIENT/MATTER #HE050-0000102175
001-1203-4201 2,500.48
CLIENT/MATTER #HE050-00086215571
001-1203-4201 1,652.00
CLIENT/MATTER #HE050-00088215572
001-1203-4201 2,926.50
Total : 7,078.9802175
99819 5/25/2022 MERCHANTS LANDSCAPE SERVICES 59886 BAMBOO REMOVAL ON GREENBELT18071
125-8548-4201 1,400.00
INSTALL NEW PLANTS ON GREENBELT59887
125-8548-4201 984.00
IRRIGATION REPAIRS59925
301-8669-4201 4,870.00
Total : 7,254.0018071
99820 5/25/2022 NV5, INC 264964 GREENWICH VILLAGE UUAD DESIGN/MAR2221033
001-2133 3,362.50
Total : 3,362.5021033
99821 5/25/2022 ODP BUSINESS SOLUTIONS, LLC 242537129001 MAT REQ 583591/OFFICE SUPPLIES13114
001-4202-4305 55.54
Total : 55.5413114
99822 5/25/2022 ORANGE COUNTY SHERIFF'S DEPT.PO 37632 MOTORCYCLE ACADEMY-RODRIGUEZ20884
001-2101-4312 1,313.34
Total : 1,313.3420884
99823 5/25/2022 PARKS COFFEE CALIFORNIA, INC.70089577 PD COFFEE SVS/APR 2222071
001-2101-4305 93.66
001-2101-4306 93.65
Total : 187.3122071
99824 5/25/2022 PLATA, YUNUEN PO 37639 MILEAGE & PARKING REIMB/TR90618411
001-2101-4313 103.62
Total : 103.6218411
99825 5/25/2022 POMERANITZ, EFRAT G.PO 37633 INSTRUCTOR PAYMENT CLASSES THRU 5.25.2219853
001-4601-4221 3,324.39
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Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 3,324.39 99825 5/25/2022 POMERANITZ, EFRAT G.19853
99826 5/25/2022 PRICE, HELEN Parcel 4182 021 030 SEWER & STREET LIGHT TAX REBATE/FY2110775
001-6871 126.60
105-3105 24.61
Total : 151.2110775
99827 5/25/2022 PROVIDENCE MEDICAL GuarantorID600000284 MAT REQ 973992/PRE-EMPLOYMENT PHYSICAL01911
001-1203-4320 541.00
Total : 541.0001911
99828 5/25/2022 RED SECURITY GROUP, LLC 75874 MAT REQ 638845/LOCKSMITH SERVICES13255
001-3301-4309 131.40
Total : 131.4013255
99829 5/25/2022 REDONDO BEACH, CITY OF 575146 DIESEL FUEL PURCHASE/JAN2208837
715-2201-4310 877.18
715-3104-4310 175.67
DIESEL FUEL PURCHASE/FEB22575147
715-2201-4310 631.55
715-3102-4310 374.92
Total : 2,059.3208837
99830 5/25/2022 REGIONAL TAP SERVICE CENTER 6015575 BUS PASS SALES/JAN2220061
001-1204-4251 20.00
BUS PASS SALES/FEB226015816
001-1204-4251 30.00
BUS PASS SALES/MAR226016142
145-3403-4251 40.00
001-1204-4251 107.50
BUS PASS SALES/APR226016497
001-1204-4251 10.00
Total : 207.5020061
99831 5/25/2022 RICHIE, JOHNATHAN PO 37583 INSTRUCTOR PAYMENT CLASSES THRU 5.28.2220932
001-4601-4221 8,466.50
Total : 8,466.5020932
99832 5/25/2022 ROADLINE PRODUCTS INC 17515 RED PAINT FOR CURB PAINTING15582
001-3104-4309 792.50
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Voucher Date Vendor Invoice Description/Account Amount
99832 5/25/2022 (Continued)ROADLINE PRODUCTS INC15582
001-3104-4309 71.49
Total : 863.9915582
99833 5/25/2022 RODRIGUEZ, GEROLD PO 37641 PER DIEM-MOTORCYCLE ACADEMY22455
001-2101-4312 150.00
Total : 150.0022455
99834 5/25/2022 ROSS, SHERI E HM5-2022 ZOOM CITATION HEARINGS/MAY2222138
001-1201-4201 450.00
Total : 450.0022138
99835 5/25/2022 RYDIN DECAL 391226 MONTHLY PARKING LOT PERMITS09870
001-1204-4305 1,587.00
001-1204-4305 62.08
Total : 1,649.0809870
99836 5/25/2022 SBCU VISA 002821 CC TR#909 LUNCH 4.3.2203353
001-1201-4317 23.34
PD WATER DELIVERY/APR2202D0034513168 CC
001-2101-4305 273.63
BAHAVIOR ANALYSIS TRAINING0407202201 CC
001-2101-4312 575.00
DOGGIE WASTE BAGS/DISPENSERS1101454 CC
001-3302-4201 947.00
PSO INTERVIEW PANEL 4.21.221153 CC
001-1203-4201 79.39
ART FRAMING1234024 CC
001-4601-4305 273.99
001-4601-4305 26.02
WORKSHOP - AHLSTROM171 CC
001-3302-4317 79.00
RETIREMENT CELEBRATION SUPPLIES171388 CC
001-2101-4305 15.75
001-2101-4305 1.49
TR#899 LODGING18338901 CC
001-2101-4312 704.35
TR#909 DINNER 4.1.22198 CC
001-1201-4317 50.00
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Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 (Continued)SBCU VISA03353
TR#913 ANNUAL MUNICIPAL SEMINAR2022 SEMINAR CC
001-1201-4317 750.00
TR#912 ANNUAL MUNICIPAL SEMINAR2022 SEMINAR CC
001-1101-4317 750.00
TR#910 FLIGHT26NVPT CC
001-2101-4317 24.99
ENGRAVED PLATE-EMPLOYEE SERVICE AWARD28709 CC
001-1101-4305 14.00
001-1101-4305 1.44
COMM SVS OFFICER PANEL 3.30.222936 CC
001-1203-4201 150.38
PSO INTERVIEW PANEL 4.26.223301 CC
001-1203-4201 92.53
TR#909 DINNER 4.2.22380726 CC
001-1201-4317 50.00
TR#909 LODGING38918 CC
001-1201-4317 714.04
CAKE FOR PSO JOHNSON RETIREMENT394343449880 CC
001-2101-4305 19.99
FASTRAK ACCOUNT REPLENISHMENT4.11.22
001-2101-4305 40.00
SIT-STAND DESKS4354679-15666650 CC
001-1203-4305 837.60
MONITOR STANDS FOR FINANCE4707079-6532227 CC
715-1206-4305 104.97
715-1206-4305 9.96
GAS & WASH FOR PD VEHICLE5437900 CC
715-2101-4311 68.34
GAS FOR PD VEHICLE5443212 CC
715-2101-4311 61.04
THEATRE LOBBY FRIDGE547018 CC
001-4601-4201 2,037.39
AMAZON - OFFICE SUPPLIES5665245-0284202B CC
001-4202-4305 92.49
001-4202-4305 8.78
SIT-STAND DESKS5790066-0242633 CC
001-1203-4305 249.98
001-1203-4305 23.74
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Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 (Continued)SBCU VISA03353
MISC P.D. SUPPLIES6059484-6025039 CC
001-2101-4305 48.59
001-2101-4305 4.62
COFFEE/OFFICE SUPPLIES6315579-7425016 CC
001-4202-4305 25.40
BARRICADE RENTAL6489016 CC
001-3104-4309 7.28
PURCHASE OF HEADPHONES6763128-9536219 CC
001-4202-4305 86.92
001-4202-4305 8.26
REPLACEMENTS FOR EXPIRING AED SUPPLIES69486 CC
001-1201-4201 153.00
001-1201-4201 14.53
MET LAWNDALE MAYOR RE:RACIAL PROFILING724522 CC
001-2101-4305 9.00
STAFF LUNCH 4.20.22793611 CC
001-4202-4305 94.66
TR#899 FUEL CHARGE832505 CC
001-2101-4312 56.12
TR#892 LODGING APRIL 2284071980 CC
001-2101-4317 209.22
SOCIAL MEDIA MGMT SUBSRIPTION8B2A7ECB-002 CC
001-1201-4201 35.00
SPECIAL NEEDS STICKERS9348862 CC
001-3302-4201 513.37
001-3302-4201 48.77
TR#906 LODGING BALANCE96360437 CC
001-2101-4313 0.03
CELL PHONE CHARGING CABLE9646022-7871448 CC
001-4202-4305 39.96
001-4202-4305 3.80
TR#874 ADDED FEE REFUNDCM21695 CC
001-2101-4317 -99.00
CONFERENCE LINE/MAR22IC30411-0322 CC
001-1201-4304 4.98
VIDEO CONF/CLOUD OVERAGE FEES/FEB22INV136966731 CC
157-2702-4201 145.59
VIDEO CONF/CLOUD OVERAGE FEES/MAR22INV142157581 CC
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Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 (Continued)SBCU VISA03353
157-2702-4201 207.31
MEDIA BUMP-HBPD STORY 3.8-3.10.22KCZGPC7QB2 CC
001-2101-4305 15.00
REPLACEMENT LAVALIER MICROPHONESL2108556520 CC
001-4601-4308 359.98
001-4601-4308 34.20
SENIOR CENTER MOVIES/MUSIC/APR22ML0F0XB9ZZ CC
001-4601-4328 9.99
SCHEID/ADD'L CELL STORAGE/APR22MSM3YNFGJX CC
001-2101-4305 0.99
LEBARON/ADD'L PHONE STORAGE/APR22MXFZXFBFG CC
001-2101-4305 2.99
LUNCH MEETING WITH SCE REPPO 37541 CC
001-1201-4305 19.79
GIFT CARDS FOR EXTERNAL RATERSPO 37637 CC
001-1203-4201 160.00
ANNUAL SUBSCRIPTION REFUNDREFUND-CC
001-1203-4201 -1,439.88
EOC SATELLITE PHONE/APR22RU311890 CC
001-1201-4304 57.67
MEDAL OF VALOR LUNCHEONTHNNLMDLFVLK86007 CC
001-2101-4317 561.00
Total : 10,549.7603353
99837 5/25/2022 SHAW HR CONSULTING INC 16581 HR CONSULTING SVS/SEPT20-MAR2118335
001-1203-4201 1,085.00
Total : 1,085.0018335
99838 5/25/2022 SIEMENS INDUSTRY INC 56202239500 TRAFFIC SIGNAL MAINT/MAR2207158
001-3104-4201 1,484.52
Total : 1,484.5207158
99839 5/25/2022 SMITH, STARLA PO 37640 MILEAGE REIMBURSEMENT-TR89213776
001-2101-4317 225.29
Total : 225.2913776
99840 5/25/2022 SOCAL GAS 011 004 5767 8 YARD BLDGS/NATURAL GAS/APR2200170
001-4204-4303 28.63
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Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
(Continued)Total : 28.63 99840 5/25/2022 SOCAL GAS00170
99841 5/25/2022 SOUTH BAY FORD 378118 MAT REQ768662 VEHICLE REPAIR/MAINT PARTS10532
715-2101-4311 111.39
MAT REQ768666 VEHICLE REPAIR/MAINT PARTS378586
715-2101-4311 30.25
MAT REQ768669 VEHICLE REPAIR/MAINT PARTS379209
715-2101-4311 191.11
MAT REQ768682 VEHICLE REPAIR/MAINT PARTS380186
715-2101-4311 20.57
MAT REQ768718 VEHICLE REPAIR/MAINT PARTS381900
715-2101-4311 348.68
MAT REQ768702 VEHICLE REPAIR/MAINT PARTS382039
715-2101-4311 112.58
MAT REQ 768719 PARTS CREDITCM381900
715-2101-4311 -317.52
MAT REQ 768720 PARTS CREDITCM381900A
715-2101-4311 -31.16
Total : 465.9010532
99842 5/25/2022 SOUTHERN CALIFORNIA EDISON CO 700338055956 ELECTRICITY/4.7.22-5.8.2200159
001-4204-4303 1,964.11
ELECTRICITY/4.8.22-5.9.22700371314327
105-2601-4303 136.54
Total : 2,100.6500159
99843 5/25/2022 SPARKLETTS 4472788 051922 MAT REQ 987431 WATER DELIVERY/MAY2200146
001-4601-4305 163.73
Total : 163.7300146
99844 5/25/2022 SPCALA 2022-0430 ANIMAL SHELTER SVS/DISPOSAL/APR 2218821
001-3302-4201 875.00
Total : 875.0018821
99845 5/25/2022 SPECIALIZED ELEVATOR SERVICES 42519 PRKNG STRUCT ELEVATOR MAINT/MAY2221538
001-3304-4201 183.40
CITY HALL ELEVATOR MAINT/MAY2242520
001-4204-4201 183.40
Total : 366.8021538
70
05/25/2022
Check Register
CITY OF HERMOSA BEACH
14
5:35:54PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99846 5/25/2022 SPRINT 551834312-245 COMM RES/CELL PHONES/APR2210098
001-4601-4304 53.11
Total : 53.1110098
99847 5/25/2022 THE LEW EDWARDS GROUP 22-01 BALLOT PREP/COMMUNICATION SVS/MAR2214457
001-1201-4201 5,950.00
BALLOT PREP/COMMUNICATION SVS/APR2222-02
001-1201-4201 5,950.00
Total : 11,900.0014457
99848 5/25/2022 TRIANGLE HARDWARE May 2022 MAINTENANCE SUPPLIES/MAY 2200123
001-3104-4309 3,152.24
001-6101-4309 796.82
105-2601-4309 2,044.38
001-2022 -104.49
001-2021 104.49
Total : 5,993.4400123
99849 5/25/2022 TURBODATA SYSTEMS, INC.37339 TICKET WRITER WIRELESS FEES/APR-JUL2220670
001-3302-4201 3,750.00
Total : 3,750.0020670
99850 5/25/2022 TURKOLU, MELINDA Parcel 4169 037 015 SEWER & STREET LIGHT TAX REBATE FY2113960
105-3105 24.61
001-6871 126.60
Total : 151.2113960
99851 5/25/2022 UNITED HEALTHCARE INS. CO Incident 84893 AMBULANCE TRANSPORT FEE REFUND08330
001-3840 204.02
Total : 204.0208330
99852 5/25/2022 UNITED SITE SERVICES 114-12955612 WEEKEND RESTROOM SVS AT CLARK FIELD18753
301-8669-4201 180.18
WEEKEND RESTROOM SVS TRIP CHARGE114-12958528
301-8669-4201 150.00
TOILET RENTAL/SOUTH PARK/APR22114-13034527
301-8669-4201 1,878.46
TOILET RENTAL/CLARK FIELD/APR22114-13034531
301-8669-4201 2,240.64
ADDED SINK @SOUTH PARK/APR22114-13063070
71
05/25/2022
Check Register
CITY OF HERMOSA BEACH
15
5:35:54PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99852 5/25/2022 (Continued)UNITED SITE SERVICES18753
301-8669-4201 435.51
Total : 4,884.7918753
99853 5/25/2022 VAN DILLEN, BEVERLY Parcel 4184 0008 028 STREET LIGHT TAX REBATE FY2115071
105-3105 24.61
Total : 24.6115071
99854 5/25/2022 VERITAS TESTING LLC 1663 COVID-19 TESTING 11/26-12/31/2122494
157-2702-4201 5,250.00
COVID-19 TESTING 1/3-2/28/221664
157-2702-4201 6,300.00
COVID-19 TESTING 3/11-3/18/221665
157-2702-4201 450.00
Total : 12,000.0022494
99855 5/25/2022 VERIZON BUSINESS SERVICES 72177879 VOIP PHONES/CITY HALL & PD/MAR2218666
001-1101-4304 31.27
001-1121-4304 45.59
001-1132-4304 13.25
001-1141-4304 26.52
001-1201-4304 109.60
001-1202-4304 63.61
001-1203-4304 53.02
001-1204-4304 79.71
001-1208-4304 6.03
001-2101-4304 382.83
001-4101-4304 79.67
001-4201-4304 98.61
001-4202-4304 132.78
001-4204-4321 13.27
160-3102-4201 13.27
715-1206-4304 13.30
VOIP PHONES/CITY HALL & PD/APR2272220759
001-1101-4304 31.30
001-1121-4304 45.84
001-1132-4304 13.27
001-1141-4304 26.57
001-1201-4304 109.49
72
05/25/2022
Check Register
CITY OF HERMOSA BEACH
16
5:35:54PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99855 5/25/2022 (Continued)VERIZON BUSINESS SERVICES18666
001-1202-4304 63.72
001-1203-4304 53.16
001-1204-4304 79.62
001-1208-4304 5.98
001-2101-4304 377.18
001-4101-4304 79.69
001-4201-4304 97.71
001-4202-4304 132.58
001-4204-4321 13.28
160-3102-4201 13.27
715-1206-4304 13.26
Total : 2,318.2518666
99856 5/25/2022 WILLOW, ELAINE M Parcel 4188 029 047 STREET LIGHT & SEWER TAX REBATE/FY2116909
001-6871 126.60
105-3105 24.61
Total : 151.2116909
99857 5/25/2022 WITTMAN ENTERPRISES LLC 2203062 AMBULANCE TRANSPORT/MAR2213359
001-1202-4201 3,963.70
Total : 3,963.7013359
99858 5/25/2022 ZUMAR INDUSTRIES INC 96717 MAT REQ 638938/STREET SIGN MAINTENANCE01206
001-3104-4309 574.65
Total : 574.6501206
415619 3/8/2022 EMPLOYMENT DEVELOPMENT DEPT L0871083280 LATE PAYROLL TAX PAYMENT PENALTY01397
001-1202-4251 7,617.00
Total : 7,617.0001397
415733 3/8/2022 EMPLOYMENT DEVELOPMENT DEPT L1269607696 UNEMPLOYEMENT CLAIMS/10.1.21-12.31.2101397
705-1215-4186 4,414.35
Total : 4,414.3501397
827784 5/23/2022 EMPLOYMENT DEVELOPMENT DEPT L620624656 UNEMPLOYMENT CLAIMS/1.1.22-3.31.2201397
705-1215-4186 14,210.76
Total : 14,210.7601397
Bank total : 437,612.51 92 Vouchers for bank code :boa
73
05/25/2022
Check Register
CITY OF HERMOSA BEACH
17
5:35:54PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
437,612.51Total vouchers :Vouchers in this report 92
"I hereby certify that the demands or claims covered by the
checks listed on pages 1 to 17 inclusive, of the check
register for 5/25/2022 are accurate funds are available for
payment, and are in conformance to the budget."
By
Finance Director
Date 5/25/22
74
06/01/2022
Check Register
CITY OF HERMOSA BEACH
1
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99859 6/1/2022 AMERICAN ARBOR CARE 64358 ARBORIST SVS/CONSULT MAY2220197
001-6101-4201 250.00
Total : 250.0020197
99860 6/1/2022 AMGRAPH GROUP, INC 13594011 INSTALL/REMOVE FLAGS FOR MEMORIAL DAY17965
001-1101-4319 2,660.00
Total : 2,660.0017965
99861 6/1/2022 AT&T 000018203579 PD COMPUTER CIRCUITS/MAY2200321
001-2101-4304 140.15
Total : 140.1500321
99862 6/1/2022 BOB BARKER COMPANY, INC.INV1767283 JAIL SUPPLIES-INMATE APPAREL08763
001-2101-4306 254.73
001-2101-4306 24.21
Total : 278.9408763
99863 6/1/2022 CANON BUSINESS SOLUTIONS, INC 122283036 ADMIN COPIER INSPECTION/REPAIR10838
715-1208-4201 393.75
Total : 393.7510838
99864 6/1/2022 CDWG W933841 ADDED MICROSOFT LICENSES09632
715-1206-4201 3,318.65
Total : 3,318.6509632
99865 6/1/2022 DPN SYSTEMS 22-014-A CPR/AED TRAINING FOR 10 STAFF MEMBERS16829
001-1201-4317 550.00
CPR/AED TRAINING FOR 1 STAFF MEMBER22-018-A
001-1201-4317 55.00
Total : 605.0016829
99866 6/1/2022 ELITE PRIVATE INVESTIGATION 202209 INVESTIGATION SVS 3.20.22-5.26.2222113
001-2101-4201 3,773.52
Total : 3,773.5222113
99867 6/1/2022 FAIRBANK, MASLIN, MAULLIN,240601 COMMUNITY SURVEY14455
001-1201-4201 27,000.00
Total : 27,000.0014455
Attachment 4 75
06/01/2022
Check Register
CITY OF HERMOSA BEACH
2
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99868 6/1/2022 FASTAIRE HAND DRYERS, INC HD3674 HAND DRYER MOTOR16476
001-4204-4309 124.75
Total : 124.7516476
99869 6/1/2022 FIRE INFORMATION SUPPORT SERV 1256 FIRE DEPT PUBLIC RECORDS REQUEST08422
001-1201-4201 1,050.00
Total : 1,050.0008422
99870 6/1/2022 GRAINGER 9324641167 MAT REQ 768726/MAINTENANCE SUPPLIES10836
715-2101-4311 44.91
Total : 44.9110836
99871 6/1/2022 HONDA MD INC, STEPHAN T 00132044 DETAINEE BLOOD DRAW/OCT2115141
001-2101-4201 63.60
Total : 63.6015141
99872 6/1/2022 INTERWEST CONSULTING GROUP INC 76518 PARKING STUDY/DOWNTOWN AREA/JAN22 SVS21849
001-1214-4322 4,535.00
PARKING STUDY/DOWNTOWN AREA/FEB22 SVS76725
001-1214-4322 8,725.00
Total : 13,260.0021849
99873 6/1/2022 JAVA MAN 05.05.22 EMPLOYEE APPRECIATION BREAKFAST09995
001-1203-4201 521.00
Total : 521.0009995
99874 6/1/2022 LA CO SHERIFFS DEPARTMENT 222840BL MAT REQ 583946/INMATE MEALS/APR2200151
001-2101-4306 195.55
Total : 195.5500151
99875 6/1/2022 LANGE, JOHN K Parcel 4183 021 009 SEWER & STREET LIGHT TAX REBATE/FY2120508
001-6871 126.60
105-3105 24.61
Total : 151.2120508
99876 6/1/2022 LUXA, BRUNHILDE Parcel 4183 021 015 STREET LIGHT TAX REBATE/FY2122616
105-3105 24.61
Total : 24.6122616
99877 6/1/2022 MCCORMICK AMBULANCE 267095 AMBULANCE TRANSPORT SVS/APR2220898
76
06/01/2022
Check Register
CITY OF HERMOSA BEACH
3
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99877 6/1/2022 (Continued)MCCORMICK AMBULANCE20898
001-1201-4201 24,080.00
Total : 24,080.0020898
99878 6/1/2022 MILLER PLANNING ASSOCIATES LLC 20007-0422-17 ZONING/SUBDIV ORDINANCE UPDATES/APR2221660
001-4105-4201 18,482.50
Total : 18,482.5021660
99879 6/1/2022 MOST DEPENDABLE FOUNTAINS INV67177 BEACH SHOWER PARTS11454
001-6101-4309 114.00
001-6101-4309 9.52
Total : 123.5211454
99880 6/1/2022 MTGL, INC.0067329 GEOTECHNICAL SVS/683 5TH ST SEWER PLAN22593
001-4202-4201 750.00
Total : 750.0022593
99881 6/1/2022 NETRIX LLC DI-000363 DATTO SERVER CLOUD LIC/MAY2211539
715-1206-4201 1,957.55
Total : 1,957.5511539
99882 6/1/2022 ODP BUSINESS SOLUTIONS, LLC 243065441001 MAT REQ 838522/OFFICE SUPPLIES13114
001-4201-4305 75.43
MAT REQ 838522/OFFICE SUPPLIES243110286001
001-4201-4305 24.11
Total : 99.5413114
99883 6/1/2022 PRESTIGE DRYWALL SYSTEMS, INC 525 DRYWALL AT CITY YARD22596
715-4204-4201 7,500.00
Total : 7,500.0022596
99884 6/1/2022 PROJECT 529, INC 1686 ANNUAL SUBSCRIPTION FEE/MAR22-MAR2322189
001-2101-4315 500.00
Total : 500.0022189
99885 6/1/2022 PRUDENTIAL OVERALL SUPPLY Stmt Dated 5.21.22 YARD UNIFORMS,TOWELS, & MATS/MAY2217676
001-2101-4309 66.16
001-3104-4309 48.36
001-3302-4309 59.56
001-4202-4314 437.61
77
06/01/2022
Check Register
CITY OF HERMOSA BEACH
4
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99885 6/1/2022 (Continued)PRUDENTIAL OVERALL SUPPLY17676
001-4204-4309 116.72
715-4206-4309 39.76
Total : 768.1717676
99886 6/1/2022 ROADLINE PRODUCTS INC 17544 BLUE TRAFFIC PAINT15582
001-3104-4309 380.00
001-3104-4309 34.20
GREEN TRAFFIC PAINT17545
001-3104-4309 830.00
001-3104-4309 76.95
Total : 1,321.1515582
99887 6/1/2022 SMARTCOVER SYSTEMS 22061 BATTERY FOR SMARTCOVER@35TH ST20282
160-3102-4309 548.63
Total : 548.6320282
99888 6/1/2022 SOUTHERN CALIFORNIA AUDIO 10796 MAT REQ 768728/WINDOW TINTING18178
715-2101-4311 344.58
Total : 344.5818178
99889 6/1/2022 SPECTRUM BUSINESS 8448300300402150 1301 HERMOSA/540 PIER CONNECTION/JUN2220236
001-2101-4304 802.07
Total : 802.0720236
99890 6/1/2022 TARANGO, CHERYL Parcel 4187 019 027 SEWER & STREET LIGHT TAX REBATE FY2111818
001-6871 126.60
105-3105 24.61
Total : 151.2111818
99891 6/1/2022 VERIZON BUSINESS SERVICES 72145175 VOIP PHONES/EOC/FEB2218666
001-1202-4304 2.51
VOIP PHONES/EOC/MAR2272177689
001-1201-4304 2.44
VOIP PHONES/BARD/APR2272220744
001-3302-4304 50.41
VOIP PHONES/BASE 3/AP2272220751
001-3302-4304 79.63
VOIP PHONES/COMM RES/APR2272221362
001-4601-4304 103.52
78
06/01/2022
Check Register
CITY OF HERMOSA BEACH
5
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
99891 6/1/2022 (Continued)VERIZON BUSINESS SERVICES18666
VOIP PHONES/EOC/APR2272221369
001-1201-4304 42.40
Total : 280.9118666
99892 6/1/2022 VILLANUEVA, BRANDY PO 37575 REIMBURSEMENT FOR AIR FILTERS20204
157-2702-4305 479.96
157-2702-4305 45.60
Total : 525.5620204
99893 6/1/2022 ZUMAR INDUSTRIES INC 96799 MAT REQ 583766/STREET SIGN MAINTENANCE01206
001-3104-4309 71.07
Total : 71.0701206
130932 5/25/2022 ADMINSURE AS AGENT FOR THE Wire Date 5.25.22A WORKERS COMP CLAIMS 3.28-4.1.2214691
705-1217-4324 30,131.57
WORKERS COMP CLAIMS 4.4-4.8.22Wire Date 5.25.22B
705-1217-4324 6,387.13
WORKERS COMP CLAIMS 4.11-4.15-22Wire Date 5.25.22C
705-1217-4324 3,142.83
WORKERS COMP CLAIMS 4.18-4.21.22Wire Date 5.25.22D
705-1217-4324 5,738.29
WORKERS COMP CLAIMS 4.25-4.29.22Wire Date 5.25.22E
705-1217-4324 32,725.00
DUPLICATE PYMT-CLAIMS 2.25-3.4.22WireDate3.29.22-DupE
705-1217-4324 -27,799.08
DUPLICATE PYMT/CLAIMS 3.7-3.11.22WireDate3.29.22-DupF
705-1217-4324 -7,665.07
DUPLICATE PYMT-CLAIMS 3.21-3.25.22WireDate3.29.22-DupG
705-1217-4324 -25,804.97
Total : 16,855.7014691
410932 5/25/2022 ADMINSURE AS AGENT FOR THE Wire Date 5.25.22F WORKERS COMP CLAIMS 5.9-5.13.2214691
705-1217-4324 7,899.54
WORKERS COMP CLAIMS 5.2-5.6.22Wire Date 5.25.22G
705-1217-4324 5,302.42
Total : 13,201.9614691
Bank total : 142,219.76 37 Vouchers for bank code :boa
79
06/01/2022
Check Register
CITY OF HERMOSA BEACH
6
5:09:46PM
Page:
Bank code :boa
Voucher Date Vendor Invoice Description/Account Amount
142,219.76Total vouchers :Vouchers in this report 37
"I hereby certify that the demands or claims covered by the
checks listed on pages 1 to 6 inclusive, of the check
register for 6/1/2022 are accurate funds are available for
payment, and are in conformance to the budget."
By
Finance Director
Date 6/1/22
80
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0377
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
ADOPTION OF THE 2022-23 APPROPRIATIONS LIMIT
(Finance Director Viki Copeland)
Recommended Action:
Staff recommends City Council adopt a Resolution approving and adopting the annual Appropriations
Limit for the Fiscal Year 2022-23.
Executive Summary:
In 1979,the State of California adopted appropriations limits on state and local governments and in
1990 updated the method of limit calculation.Each year,staff presents to City Council a resolution to
approve and adopt the City’s annual appropriations limit.
Background:
On November of 1979,Article XIII B of the California State Constitution was adopted by the voters
through Proposition 4.This Article established appropriations limits on state and local governments
using a formula for appropriation of revenue from tax proceeds.
On June 5,1990,Proposition 111 modified this method of calculating the limit,beginning with fiscal
year 1990-91,to allow the City to choose the most beneficial of two adjustment factors for inflation
and population as follows:
Inflation
California Per Capita Personal Income Change
or
Increase in Non-Residential Assessed Valuation Due to New Construction
Population
City Population Growth
or
County Population Growth
Proposition 111 also implemented a requirement that the Appropriation Limit be reviewed annually by
City of Hermosa Beach Printed on 9/12/2022Page 1 of 3
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Staff Report
REPORT 22-0377
Proposition 111 also implemented a requirement that the Appropriation Limit be reviewed annually by
the City’s Independent Auditor.
Analysis:
The 2022-23 limit was calculated,per the League of California Cities Uniform Guidelines,by applying
the population and inflation factors to the prior year limit.The County of Los Angeles’population
change of -0.71 percent was used as the population growth factor since the decrease is less than the
City’s population change of -1.09 percent.The California Per Capita Personal Income Change of 7.55
percent was used as the inflation factor since the increase in Non-Residential Assessed Valuation
Due to New Construction is 0.98 percent.The factor with the largest change is always chosen to give
the City maximum discretion with regard to appropriations.
The law requires adoption of the 2022-23 limit by resolution and a recorded vote of the Council to
select annual adjustment factors. The choice is set forth in the attached resolution.
The limit calculation will be reviewed by the City’s auditors during the annual financial audit.
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.
This report and associated recommendations 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.
Policy:
·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.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1.Resolution Adopting 2022-23 Appropriations Limit
2.2022-23 Calculation of Appropriation Limit
City of Hermosa Beach Printed on 9/12/2022Page 2 of 3
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Staff Report
REPORT 22-0377
Respectfully Submitted by: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Printed on 9/12/2022Page 3 of 3
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RESOLUTION NO. 22-xxxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2022–2023
WHEREAS, the voters of California, on November 6, 1979, added Article XIII B to the
State Constitution, placing various limitations on appropriations of state and local governments; and
WHEREAS, Article XIII B provides that the appropriations limit for the fiscal year 2022–
2023 is calculated by adjusting the base year appropriations of fiscal year 1978-79 and subsequent
years for changes in the cost of living and population; and
WHEREAS, Proposition 111 (Section 1.5 of Article XIII B), enacted by the voters on June
5, 1990, modified the method of calculating the limit, beginning with fiscal year 1990-91; and
WHEREAS, the City of Hermosa Beach has complied with all of the provisions of Article
XIII B in determining the appropriations limit for fiscal year 2022–2023;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA
BEACH, CALIFORNIA, DOES RESOLVE AS FOLLOWS:
SECTION 1. That the City of Hermosa Beach chooses to use the California Per Capita
Personal Income Change as the inflation adjustment factor for fiscal year 2022–2023.
SECTION 2. The City of Hermosa Beach chooses to use the Change in Population for the
County of Los Angeles as the growth adjustment factor for fiscal year 2022–2023.
SECTION 3. The City of Hermosa Beach uses the Uniform Guidelines published by the
League of California Cities in March 1991 to determine the limit and appropriations subject to the
limit.
Attachment 1 84
Page 2 of 2
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SECTION 4. Documentation for calculation of the limit is on file in the Finance
Department and will be reviewed by the City’s auditors during the annual financial audit, as required
by Proposition 111.
SECTION 5. The appropriations limit for the City of Hermosa Beach for fiscal year 2022–
2023 is $48,774,435.
SECTION 6. 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 14th 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
85
CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT
HISTORY OF LIMITATION
Limitation for 1986-87 Fiscal Year $8,609,437
1987-88
Per Capita Income Change =3.47%
>1.0544
County of Los Angeles Population Change = 1.91%
Limitation $9,077,790
1988-89
Per Capita Income Change =4.66%
>1.0655
County of Los Angeles Population Change = 1.81%
Limitation $9,672,386
1989-90
Per Capita Income Change =5.19%
>1.0638
County of Los Angeles Population Change = 1.14%
Limitation $10,289,484
1990-91
Per Capita Income Change =4.21%
>1.0562
County of Los Angeles Population Change = 1.36%
Limitation $10,867,753
1991-92
Per Capita Income Change =4.14%
>1.0594
County of Los Angeles Population Change = 1.73%
Limitation $11,513,297
1992-93
Per Capita Income Change =-0.64%
>1.0084
County of Los Angeles Population Change = 1.49%
Limitation $11,610,009
1993-94
Per Capita Income Change =2.72%
>1.0371
County of Los Angeles Population Change = 0.96%
Limitation $12,040,740
1994-95
Per Capita Income Change =0.71%
>1.0147
County of Los Angeles Population Change = 0.75%
Limitation $12,217,739
1995-96
Per Capita Income Change =4.72%
>1.0507
County of Los Angeles Population Change = 0.33%
Limitation $12,837,178
1996-97
Per Capita Income Change =4.67%
>1.0517
County of Los Angeles Population Change = 0.48%
Limitation $13,500,860
Attachment 2
86
CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT
HISTORY OF LIMITATION
1997-98
Per Capita Income Change =4.67%
>1.0597
County of Los Angeles Population Change = 1.24%
Limitation $14,306,861
1998-99
Per Capita Income Change =4.15%
>1.0604
County of Los Angeles Population Change = 1.81%
Limitation $15,170,995
1999-00
Per Capita Income Change =4.53%
>1.0639
County of Los Angeles Population Change = 1.78%
Limitation $16,140,422
2000-01
Per Capita Income Change =4.91%
>1.0675
County of Los Angeles Population Change = 1.75%
Limitation $17,229,900
2001-02
Per Capita Income Change =7.82%
>1.0961
County of Los Angeles Population Change = 1.66%
Limitation $18,885,693
2002-03
Increase in non-residential assessed valuation due
to new construction =1.00%
>1.0299
City of Hermosa Beach Population Change =1.97%
Limitation $19,450,375
2003-04
Per Capita Income Change =2.31%
>1.0401
County of Los Angeles Population Change = 1.66%
Limitation $20,230,335
2004-05
Per Capita Income Change = 3.28%
>1.0471
County of Los Angeles Population Change = 1.38%
Limitation $21,183,184
2005-06
Per Capita Income Change =5.26%
>1.0650
County of Los Angeles Population Change =1.18%
Limitation $22,560,091
2006-07
Per Capita Income Change =3.96%
>1.0477
County of Los Angeles Population Change =0.78%
Limitation $23,636,207
87
CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT
HISTORY OF LIMITATION
2007-08
Per Capita Income Change =4.42%
>1.0515
County of Los Angeles Population Change =0.72%
Limitation $24,853,472
2008-09
Per Capita Income Change =4.29%
>1.0519
County of Los Angeles Population Change =0.86%
Limitation $26,143,367
2009-10
Increase in non-residential assessed valuation due
to new construction =0.88%
>1.0179
County of Los Angeles Population Change =0.90%
Limitation $26,611,333
2010-11
Increase in non-residential assessed valuation due
to new construction =1.01%
>1.019
City of Hermosa Beach Population Change =0.94%
Limitation $27,116,948
2011-12
Increase in non-residential assessed valuation due
to new construction =2.75%
>1.0314
County of Los Angeles Population Change =0.38%
Limitation $27,968,420
2012-13
Increase in non-residential assessed valuation due
to new construction =9.71%
>1.101268
County of Los Angeles Population Change =0.38%
Limitation $30,800,726
2013-14
Per Capita Income Change =5.12%
>1.05845328
County of Los Angeles Population Change =0.69%
Limitation $32,601,127
2014-15
Increase in non-residential assessed valuation due
to new construction =1.31%
>1.021002
County of Los Angeles Population Change =0.78%
Limitation $33,285,816
2015-16
Per Capita Income Change 3.82%
>1.046713
County of Los Angeles Population Change =0.82%
Limitation 34,840,696$
2016-17
Per Capita Income Change 5.37%
>1.062656
County of Los Angeles Population Change =0.85%
Limitation 37,023,675$
88
CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT
HISTORY OF LIMITATION
2017-18
Per Capita Income Change 3.69%
>1.042810
County of Los Angeles Population Change =0.57%
Limitation 38,608,659$
2018-19
Per Capita Income Change 3.67%
>1.041987
County of Los Angeles Population Change =0.51%
Limitation 40,229,720$
2019-20
Per Capita Income Change 3.85%
>1.040265
City of Hermosa Beach Population Change =0.17%
Limitation 41,849,570$
2020-21
Per Capita Income Change 3.73%
>1.036159
County of Los Angeles Population Change =-0.11%
Limitation 43,534,643$
2021-22
Per Capita Income Change 5.73%
>1.049159
County of Los Angeles Population Change =0.77%
Limitation 45,674,763$
2022-23
Per Capita Income Change 7.55%
>1.067864
County of Los Angeles Population Change =0.71%
Limitation 48,774,435$
89
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0362
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
2020-21 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
(Including Report from Independent Auditor)
(Finance Director Viki Copeland)
Recommended Action:
Staff recommends City Council receive and file the 2020-21 Annual Comprehensive Financial Report
(ACFR),which includes the report from Gruber and Lopez,Inc.,formerly Gruber and Associates,the
City’s independent auditors.
Executive Summary:
For the 2020-21 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 2019-20 and 2020-21 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
ACFR, are repeated herein for the purpose of having this staff report stand alone.
Overall,General Fund Revenue increased by 3.9 percent and expenditures decreased by 1.8
percent.Revenue was higher than budget by 5.8 percent;expenditures were under budget by 9.1
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 part of the Midyear Budget Review on March
8,2022,staff recommended assigning unspent General Funds from 2020-21 of $5,834,252 for the
2022-23 Budget process,at which time 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.Ultimately,the 2022-23 Preliminary Budget recommends that unspent funds remaining from
Fiscal Year 2020-21 be used for the following:
·$18,362 to increase the assigned Compensated Absences balance to the funding goal of 25
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percent of the accrued liability for employee vacation, sick, and compensatory time;
·$278,031 to increase the Insurance Fund’s net position to the funding goal of $3 million for
claims above recorded claims liabilities or catastrophic losses;
·$333,645 to increase the Equipment Replacement Fund balance to the funding goal,which is
to maintain net position equal to the accumulated amount calculated on the equipment
replacement schedules for all equipment based on replacement cost and useful life;
·$2,602,107 to the Capital Projects Fund to fund 2022-23 Capital Improvement Projects (CIPs)
and future CIP funding needs; and
·The remaining $2,602,107 from FY2020-21 would be reserved for use in the 2023-24 Budget.
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,now Gruber and
Lopez,Inc.,on May 28,2019 after selection through the Request for Proposals (RFP)process.This
is the third year of the three-year contract, with options to extend an additional two years.
The increased Finance Department workload due to staffing challenges,labor negotiations,and the
continued implementation of an online budgeting system pushed the annual audit and issuance of
the financial statements later than normal.An extension on the submission date was received from
the Government Finance Officers Association (GFOA)and the report was submitted to qualify for the
Certificate of Achievement for Excellence in Financial Reporting.The City received the award for the
2020-21 Annual Report and has received the award since 1990.
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 2020-21, but none of them significantly 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
such as the General Fund.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.
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REPORT 22-0362
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”categories
on page 25,the Balance Sheet for Governmental Funds.The City’s policy for these funds shows on
pages 50-51 in Note 1 of the Annual Report and the detailed amounts show in Note 11 on page 75.
Also,as a helpful reminder in reading the ACFR,the GASB 34 reporting model that was implemented
in 2002 dictates the following:
·Requires presentation of 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 2019-20 and 2020-21 is not included in the
ACFR,it is presented in the following pages.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.
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REPORT 22-0362
General Fund Revenue
General Fund revenue decreased 3.9 percent over 2019-20, as depicted in the chart that follows.
Revenue was higher than budget by 5.8 percent, however revenue is still $1,171,316 below 2018-19
or 2.8 percent.
Revenue Increase % Of
FY 2020-21 (Decrease)Increase %
Amount Over FY 2019-20 (Decrease) Of Total
Property Taxes $20,507,313 $1,387,495 7.26%51.20%
Sales Tax $3,192,853 $470,385 17.28%7.97%
Utility Users' Tax *$2,171,538 $77,635 3.71%5.42%
Transient Occupancy Tax $2,552,964 ($46,846)-1.80%6.37%
Other Taxes $1,801,499 $68,995 3.98%4.50%
Licenses and Permits $904,362 $174,740 23.95%2.26%
Fines and Forfeitures $2,129,829 ($30,415)-1.41%5.32%
Use of Money and Property $515,241 ($148,375)-22.36%1.29%
Intergovernmental Revenue $101,955 ($26,725)-20.77%0.25%
Charges for Services $6,052,751 ($86,968)-1.42%15.11%
Miscellaneous $167,815 $82,980 97.81%0.42%
Interest ($46,868)($414,939)-112.73%-0.12%
Total $40,051,252 $1,507,962 3.91%100.00%
99.99%
* $700,000 in UUT revenue was removed from the General Fund and shown in the Storm Water Fund as revenue rather
than a transfer for financial statement purposes only.
REVENUE SOURCE
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REPORT 22-0362
Taxes
Revenue from taxes generates 75 percent of General Fund revenue.The graph below tracks select
tax revenue sources over the past 10 years.
Property Tax
Total property tax revenue increased 7.3 percent.The graph above shows secured tax,which
increased 7 percent and unsecured tax,which increased 2 percent.Hermosa Beach’s assessed
valuation for secured and unsecured property increased 5.9 percent overall.The 4.4 percent growth
was the 18th highest of 88 cities in Los Angeles County.Median home prices in Hermosa Beach for
June 2021 were $1,995,000 as compared to Los Angeles County’s median price of $790,000.The
average median home price for Hermosa Beach for fiscal year 2020-21 was $1,909,868 compared to
$1,802,698 for the prior year.
Sales Tax
Sales tax revenue increased 17.3 percent from 2019-20 primarily due to increases in the Other Retail
Stores and County/State Pool.The impact of COVID-19 is reflected in Eating and Drinking Places,
Manufacturing and Wholesale, Business and Service Repairs, and Non-Store/Part Time Retailers.
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REPORT 22-0362
Sales Tax by Class
2020-21 % Change
Previous Year
Retail Group
Eating/Drinking Places $779,202 ($70,640)(8%)26%
Other Retail Stores $281,526 $64,429 30%9%
Building Materials $269,034 $11,497 4%9%
Food Stores $260,853 $5,522 2%9%
Auto Dealers & Supplies $152,775 $25,478 20%5%
Apparel Stores $97,689 $15,242 18% #
Service Stations ##(19%)3%
Furniture/Appliance $84,173 $25,642 44%3%
Drug Stores ##(6%) #
All Other Retail $65,647 $2,968 5%2%
Total Retail Group ##3%71%
Total Manufacturing $138,632 ($4,674)(3%)5%
& Wholesale
Total Business, Service, $114,927 ($14,706)(11%)3%
Repair
Total Non-Store/Part Time $1,101 ($6,772)(86%)1%
Retailers/Adjustments
Total County/State Pool $637,604 $163,371 34%20%
* Service station and drugstore amounts are not listed because there are too few in the category.
RANK / BUSINESS CLASS INC/(DEC)% OF
TOTAL
Sales Tax by Geographic Area
Revenue % OF Revenue % OF
LOCATION 2019-20 Total % Change 2020-21 Total
PCH 982,752 49%9%1,068,885 52%
Downtown 673,331 33%-12%592,844 29%
Pier/Valley/Monterey 267,661 13%4%279,149 13%
Aviation 92,858 5%26%116,697 6%
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Transient Occupancy Tax (TOT)
Transient occupancy tax decreased 1.2 percent over 2019-20.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 18.7
percent over 2019-20 due to COVID-19 closures and stay at home orders.Average occupancy was
44.6 percent in 2020-21; occupancy was 63.4 percent in 2019-20.
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 up overall by $77,635 or 3.7 percent in 2020-21.
Licenses and Permits
The License and Permit category increased by 24 percent primarily due to an increase in building
permits.
Fines and Forfeitures
Fines and Forfeitures decreased by 1.4 percent in 2020-21.Staff vacancies and duties other than
parking contributed to the decrease.
Use of Money and Property
Use of Money and Property decreased by 22.4 percent in 2020-21,primarily due to decline in rental
income, including the Community Center and Theater rentals.
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Service Charges
Service Charges show a decrease of 1.4 percent.Revenue was down due to encroachments and
ambulance transports.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.The encroachment fees continued to be suspended for 2020-21.Recreation related service
charges increased over 2019-20 as programing resumed.
Interest
Interest decreased by 112.7 percent due to the decline in interest rates and the recording of an
unrealized loss on investments of $164,636 in 2020-21. An unrealized gain of $150,299 was
previously recorded in 2019-20. Unrealized losses and gains are on paper only since the City holds
investments to maturity.
General Fund Expenditures
Expenditures Increase % Of
2020-21 (Decrease)Increase %
Amount Over 19-20 (Decrease)Of Total
Legislative/Legal $1,474,436 $174,418 13.42%4.10%
General Government $4,166,334 ($387,900)-8.52%11.58%
Public Safety $21,612,013 $152,450 0.71%60.09%
Community Development $2,062,104 $22,424 1.10%5.73%
Culture/Recreation $1,326,493 ($194,536)-12.79%3.69%
Public Works $5,277,781 ($64,471)-1.21%14.67%
Capital Outlay $46,545 ($364,659)-88.68%0.13%
Total $35,965,706 ($662,274)-1.81%100.00%
GENERAL FUND
Expenditures were 9.1 percent under budget and show a decrease of 1.8 percent from the prior year
due to the following:
·The Legislative and Legal increase of 13.4 percent is primarily due to the May 2021 special
election to fill a vacancy on the City Council;
·The General Government decrease of 8.5 percent is primarily due to staffing vacancies and
one-time costs in 2019-20 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,and North School Traffic Plan costs.Additionally,Public Information Officer (PIO)costs
were shifted at the end of 2019-20 and into 2020-21 from the City’s Manager’s Department inCity of Hermosa Beach Printed on 9/12/2022Page 8 of 12
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REPORT 22-0362
were shifted at the end of 2019-20 and into 2020-21 from the City’s Manager’s Department in
the General Fund to the Federal Emergency Management Agency (FEMA)Fund for
expenditures related to the City’s COVID-19 emergency response;
·The Public Safety increase of 0.7 percent is due to increased retirement costs for the legacy
fire department PERS plans; and
·Capital Outlay decreased by 88.68 percent due to the payment to the County for the Fire
Facility being paid from the Capital Improvement Fund in 2020-21 instead of the General
Fund. Additionally, fewer CIPs were funded from the General Fund in 2020-21.
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.The 2021-22 Adopted Budget transferred unspent funds from
prior years to the Capital Improvement Fund to provide funding for future Capital Improvement
Projects,increase the Capital Facilities Reserve,and establish a reserve for the remaining Fire
Facility payments to the County for the newly renovated fire station.
As previously noted,the 2022-23 Preliminary Budget on tonight’s agenda recommends that unspent
funds remaining from Fiscal Year 2020-21 be used for the following:
·$18,362 to increase the assigned Compensated Absences balance to the funding goal of 25
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percent of the accrued liability for employee vacation, sick, and compensatory time;
·$278,031 to increase the Insurance Fund’s net position to the funding goal of $3 million for
claims above recorded claims liabilities or catastrophic losses;
·$333,645 to increase the Equipment Replacement Fund balance to the funding goal,which is
to maintain net position equal to the accumulated amount calculated on the equipment
replacement schedules for all equipment based on replacement cost and useful life;
·$2,602,107 to the Capital Projects Fund to fund 2022-23 Capital Improvement Projects (CIPs)
and future CIP funding needs; and
·The remaining $2,602,107 from FY2020-21 would be reserved for use in the 2023-24 Budget.
Insurance Fund
The net position in the Insurance Fund is under the funding goal of $3,000,000 at year end.The
balance at June 30,2020 was under the funding of $3 million due to transfers to the General Fund to
assist in balancing the budget at year-end.There was an increase in attorney fees in addition to an
increase in claims/settlement expenses of $953,264 in the litigation account.Additionally,claims
expenses and adjustments for actuarially determined claims payable were higher than expected,
resulting in the ending balance of $1,103,110.
Other primary expenses in the Insurance Fund are related to workers’compensation claims,general
liability claims and litigation.Claims payments for workers’compensation were higher by $91,523 and
liability cases were higher by $139,940 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 $397,712,largely due to an
increase in year-end liability recorded in the Worker’s Compensation Division.
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Changes to Claims Expense
DEPARTMENT/DIVISION 2019-20 2020-21
Increase
(Decrease)
Workers Compensation Division
Change to:
Claims Paid $757,408 $848,931 $91,523
Year-end Liability (375,344)325,905 701,249
$382,064 $1,174,836 $792,772
Liability Division
Change to:
Claims Paid $245,781 $385,721 $139,940
Year-end Liability 681,269 146,269 (535,000)
$927,050 $531,990 ($395,060)
Total Claims Expense $1,309,114 $1,706,826 $397,712
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 Element
Goal 1. Infrastructure systems are functional, safe, and well maintained.
Policies:
·1.2 Priority investments.Use City Council established priorities and the Capital Improvement
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REPORT 22-0362
·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 Element
Goal 5.High quality police and fire protection services provided to residents and visitors.
Policy:
·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 2020-21 Annual Report provides a financial overview for the previous fiscal year.Audited fund
balances were used in the Fund Summary Reports for the 2021-22 Midyear Budget Review and
2022-23 Preliminary Budget.The 2022-23 Preliminary Budget item appears on this agenda under
Public Hearings.
Attachments:
1.2020-21 Comprehensive Annual Financial Report
Respectfully Submitted by: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager
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City of Hermosa Beach,
California
Annual
Comprehensive
Financial
Report
For the Year Ended June 30, 2021
102
City of Hermosa Beach
Hermosa Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Prepared by the
Finance Department of Hermosa Beach
103
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104
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
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 .................................................................................. 26
Statement of Revenues, Expenditures,
and Changes in Fund Balances ....................................................................................................................... 27
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Government–Wide
Statement of Activities ..................................................................................................................................... 28
Proprietary Fund Financial Statements:
Statement of Net Position ....................................................................................................................................... 31
Statement of Revenues, Expenses, and Changes in Net Position ..................................................................... 32
Statement of Cash Flows ........................................................................................................................................ 33
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position ..................................................................................................................... 37
Index to the Notes to the Basic Financial Statements .................................................................................................. 41
Notes to the Basic Financial Statements ......................................................................................................................... 43
i
105
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):
Budgetary Comparison Schedule – General Fund.................................................................................................................... 80
Budgetary Comparison Schedule – FEMA Special Revenue Fund ....................................................................................... 81
Notes to the Budgetary Comparison Schedule .......................................................................................................................... 82
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous ............... 83
Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Safety ............................. 84
Schedule of City’s Contributions – Pension - Miscellaneous ................................................................................................. 85
Schedule of City’s Contributions – Pension - Safety ............................................................................................................... 86
Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................................... 87
Schedule of the City's Contributions - OPEB ........................................................................................................................... 88
Supplementary Information:
Nonmajor Governmental Funds:
Combining Balance Sheet ............................................................................................................................................ 93
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 99
Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual
Nonmajor Special Revenue Funds:
Lighting and Landscaping District ............................................................................................................... 105
State Gas Tax .................................................................................................................................................. 106
AB 939 ............................................................................................................................................................. 107
Prop A Open Space ........................................................................................................................................ 108
Tyco .................................................................................................................................................................. 109
Parks/Recreation Facilities Tax .................................................................................................................... 110
Bayview Drive Administrative Expense ..................................................................................................... 111
Loma District Administrative Expense ....................................................................................................... 112
Beach Drive Assessment District Administrative Expense ...................................................................... 113
Proposition “C” ............................................................................................................................................... 114
Measure “R” .................................................................................................................................................... 115
Air Quality Management District ................................................................................................................. 116
Supplemental Law Enforcement Services................................................................................................... 117
Asset Seizure and Forfeiture ......................................................................................................................... 118
Fire Protection ................................................................................................................................................. 119
Community Development Block Grant ....................................................................................................... 120
Measure “M” ................................................................................................................................................... 121
RTI Undersea Cable ....................................................................................................................................... 122
RTI Undersea Cable Tidelands ..................................................................................................................... 123
Proposition “A” Transit ................................................................................................................................. 124
Grants ............................................................................................................................................................... 125
Measure “W” ................................................................................................................................................... 126
Sewer ................................................................................................................................................................ 127
Storm Drain ..................................................................................................................................................... 128
Nonmajor Debt Service Fund:
2015 Lease Revenue Bond ............................................................................................................................ 129
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City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
Supplementary Information (Continued):
Major Capital Project Fund:
Capital Improvements ................................................................................................................................... 130
Nonmajor Capital Project Fund:
Greenwich Underground ............................................................................................................................... 131
Internal Service Funds:
Combining Statement of Net Position ....................................................................................................................... 133
Combining Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 134
Combining Statement of Cash Flows ......................................................................................................................... 135
Fiduciary Fund Financial Statements:
Combining Statement of Fiduciary Net Position ...................................................................................................... 137
STATISTICAL SECTION (Unaudited)
Net Assets by Component .......................................................................................................................................................... 141
Changes in Net Assets ................................................................................................................................................................ 143
Governmental Activities Tax Revenues By Source ............................................................................................................... 147
Fund Balances of Governmental Funds ................................................................................................................................... 149
Changes in Fund Balances of Governmental Funds .............................................................................................................. 151
General Government Tax Revenues By Source ..................................................................................................................... 153
Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... 154
Direct and Overlapping Property Tax Rates ........................................................................................................................... 155
Principal Property Taxpayers .................................................................................................................................................... 156
Property Tax Levies and Collections ....................................................................................................................................... 157
Construction Value and Property Value .................................................................................................................................. 158
Direct and Overlapping Debt ..................................................................................................................................................... 159
Legal Debt Margin Information ................................................................................................................................................ 161
Ratios of Outstanding Debt by Type ........................................................................................................................................ 163
Ratios of General Bonded Debt Outstanding .......................................................................................................................... 164
Demographic and Economic Statistics ..................................................................................................................................... 166
Principal Employers .................................................................................................................................................................... 167
Full-Time and Part-Time City Employees by Function ........................................................................................................ 168
Operating Indicators by Function ............................................................................................................................................. 169
Capital Asset Statistics by Function ......................................................................................................................................... 170
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 .......................................................... 173
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March 31, 2022
Honorable Mayor and Members of the City Council and Citizens of Hermosa Beach, California:
Introduction
Presented herein is the Annual Comprehensive Financial Report (ACFR) of the City of Hermosa Beach for
the fiscal year ended June 30, 2021. 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 Lopez, Inc., 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,
2021, 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, 2021, 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
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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 19,451, 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 2020–21
fiscal year, beach attendance ranged from a
low of 177,900 in November 2020 to a high
of 953,000 in August 2020, according to the
Los Angeles County Fire Department,
Lifeguard Division. These numbers are
back to a more normal range than the 2019–
20 numbers which sank to a low of 418 in
April 2020 due to COVID-19.
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 were 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 Facts shown on the following page.
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The U.S. Census Bureau Quick Facts are as of March 2022. 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 revenue estimates and
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 80–88. For non-major governmental funds
Category Hermosa Beach California Category Hermosa Beach California
Persons under 5 years,
2020 estimate 5.2% 6.1%
Persons under 18 years,
2020 estimate 17.9% 22.8%
Persons 65 years and
over, 2020 estimate 13.6% 14.3%
Female persons, 2020
estimate 46.8% 50.3%
Non-Hispanic White 75.0% 36.5% Hispanic 11.2% 39.4%
Non-Hispanic Black 0.7% 6.5%
Non-Hispanic
American Indian 0.5% 1.6%
Non-Hispanic Asian 6.1% 15.5%
Persons per households,
2016-2020 2.23 2.94
Bachelor's Degree or
higher, persons age 25+,
2016-2020 77.0% 34.7%
High School graduate or
higher, persons age 25+,
2016-2020 97.9% 83.9%
Per capita income in the
past 12 months (2020
dollars), 2016-2020 $96,152 $38,576
Persons below poverty
level, 2016-2020 4.2% 11.5%
Households, 2016-2020 8,596 13,103,114
Owner-occupied
housing units, 2016-
2020 50.1% 55.3%
Median value of owner-
occupied housing units,
2016-2020 $1,649,900 $538,500
Housing units in multi-
unit structures, 2020 45.7% 35.1%
Households with a
computer, 2016-2020 97.8% 94.3%
Mean travel time to
work, 2016-2020 34.5 minutes 29.8 minutes
U.S. CENSUS BUREAU QUICK FACTS
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with appropriated annual budgets, this comparison is presented as Supplementary Information, after the
Notes to the Financial Statements.
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 8,596 and an in-city
business count of 1,090 (excluding apartments and home occupations).
Hermosa Beach is very fortunate to have growth of 5.9 percent in secured and unsecured assessed
valuation, which compares to Los Angeles County. The 5.9 percent growth was the 18th highest of 88 cities
in Los Angeles County. Median home prices in Hermosa Beach as of June 2021 were $1,995,000, compared
to $790,000 for Los Angeles County. The Hermosa Beach median home price for June 2020 was $1,937,500,
compared to $643,000 for Los Angeles County. The average median home price for Hermosa Beach for
fiscal year 2020–21 was $1,909,868 and $1,802,698 for fiscal year 2019–20.
General Fund Secured property taxes increased seven percent in 2020–21, roughly 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 2021 is 7 percent, compared with 10.3 percent for Los Angeles County, and 8 percent for
California. City and Los Angeles County rates improved over 2020 rates of 10.2 percent and 19.6 percent
respectively while the state rose to 15.1 percent.
Sales tax receipts for 2020–21 are up 17 percent from the prior year primarily due to increases in the
Other Retail and County and State Pool categories. The Eating/Drinking category which produces the
most sales tax, was hard hit by the closures due to COVID-19. Sales tax from this category declined six
percent.
The TOT tax rate increased from 12 percent to 14 percent on January 1, 2020 as a result of a measure placed
on the ballot by City Council. Transient occupancy tax (the tax on hotel stays) decreased 12 percent (after
adjusting for the rate increase from 12 to 14 percent) from 2019–20 due to COVID closures and stay at
home orders. Average occupancy for 2020–21 was 44.7 percent vs. the prior year’s rate of 63.4 percent. The
last three months of the fiscal year had average occupancy of 73 percent versus 35 percent the prior year
so that is a positive trend. Hermosa Beach has nine hotels, one youth hostel, with room capacities ranging
from 17 rooms to 96 rooms. There are also three new short term vacation rentals in the commercial area
with four rooms/units.
Utility user tax (UUT) revenue was up 3.7 percent last year and is the fourth highest source of tax revenue
at $2.2 million. The largest increase was in the category of cellular phone service and cable television.
See Management’s Discussion and Analysis for more revenue details.
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 $51,477,782 were recorded in 2020–21 and the unrestricted net position was reduced
accordingly. The change in accounting standards impacted only the government-wide financial
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statements, 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
statements, 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, 2021 financial
statements. 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 statements for certain component units.
The City implemented GASB 98, the Comprehensive Financial Report, which establishes the term annual
comprehensive financial report and its acronym ACFR, replacing instances of comprehensive annual
financial report and its acronym. For more information see Note 1, Section Q- Accounting Changes.
California Public Employees Retirement System (CalPERS). The preliminary CalPERS investment
return as of June 2021 was 21.3 percent, bringing the total fund performance to 10.3 percent for the five-
year period, 8.5 percent for the ten-year period, and 6.9 percent for the twenty-year period. The 2020–21
rate of return triggered a reduction in the discount rate used to calculate employer and Public Employee’s
Pension Reform Act (PEPRA) member contributions due to the Funding Risk Mitigation Policy approved
in 2015. The Funding Risk Mitigation policy lowers the discount rate in years of good investment returns.
The discount rate, or assumed rate of return, dropped from 7 percent to 6.8 percent. This is the first time
the policy has been triggered.
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 percent 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.
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.
On December 20, 2016, the CalPERS Board approved a change in the discount rate from 7.5 percent to 7
percent 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 increases 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) that paid off from 2018-19 to 2019-20 which helped mitigate
the rate increases.
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.
Funds will be placed in a retirement trust when the budget is back to a more predictable state.
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.
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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 percent of the General Fund appropriations for
economic uncertainties, unforeseen emergencies.
Compensated Absences—Goal equal to 25 percent 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 $5,834,252 in 2020–21 as a result of improved revenue and salary savings
due to vacant positions and employee leaves. Due to the ongoing 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 2022–23 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, Pay-By-App Parking Signage, PCH Mobility Improvement Project,
Strand Bikeway and Walkway Improvements at 35th Street, Park Planting Improvements, Prospect Ave
Curb Ramps, South Park Slope and Irrigation Repairs, 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, Parking Lot D
improvements, Emergency Operations Center Renovations, Clark Building Renovations, 14th Street Beach
Restroom Construction, Parking Lot A Improvements, Police Station Improvements, ADA Improvements,
and Parking Structure (Lot C) Improvements.
Cash management policies and practices. Temporarily idle cash was invested during the year in
obligations of the U.S. Treasury, 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 2.2 percent. 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 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 Company,
providing coverage up to the statutory limits.
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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, 2021, the City has fifty-three (53) active Tier 1 employees, seventeen
(17) active Tier 2 employees and seventy-three (73) 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 69 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 2020 Certificate of Achievement for
Excellence in Financial Reporting to the City of Hermosa Beach for its Annual Comprehensive Financial
Report for the fiscal year ended June 30, 2020. This was the thirtieth 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 Annual
Comprehensive Financial Report 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 Lopez, Inc, 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
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Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hermosa Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
xii 116
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 117
xiv
PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA
June 30, 2021
Elected and Administrative Officials
City Council
Justin Massey Mayor
Michael Detoy Mayor Pro Tem
Stacey Armato Councilmember
Mary Campbell, Ph.D. Councilmember
Raymond Jackson 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
Angela Crespi Deputy City Manager /
Interim Public Works
Director
118
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, 2021, 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, 2021, 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 – www.gruberlopezinc.com
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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-FEMA 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 5 to 16
and 80 to 88, 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.
2 120
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 31, 2022, 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 31, 2022
3
Gruber and Lopez, Inc.
Gruber and lopez, Inc.
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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, 2021. 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 $60,081,812
(net position). Excluding the $51,477,782 net pension liability, $38,037,706 represents
unrestricted net position and may be used to meet the government's ongoing obligations.
• The City’s net position decreased by $473,913
• As of June 30, 2021, the City of Hermosa Beach’s governmental funds reported combined
ending fund balances of $41,914,355, an increase of $6,409,747 in comparison with the prior
year. This increase is due to revenue exceeding expenditures in the current year.
At the end of the current fiscal year, the City of Hermosa Beach’s governmental fund balances
of $41,914,355 are comprised of non-spendable funds; $575,897, restricted; $10,427,092
committed; $4,587,847; and assigned; $21,316,310 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 62 percent, or $25,904,157 of the $41,914,355 in funds
could be redirected at the discretion of the City Council. An additional $5,007,209 or 12 percent
is unassigned. See Note 11 in the Notes to the Basic Financial Statements.
At the end of 2020–21, $5,834,252 of unspent funds remained in the General Fund as a result of
increased revenue and lower expenditures due to vacancies and employee leaves. 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 $12,665,093 or 35 percent 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.
The Statement of Net Position presents information on all 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.
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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 thirty-two 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:
General Fund
Federal Emergency Management Agency (FEMA) 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 percent of corresponding totals for all
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governmental or enterprise funds and at least 5 percent of the corresponding total for all
governmental and enterprise funds combined.
Data from the other twenty-nine 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 funds. A budgetary
comparison statement has been provided for the General Fund, FEMA Special Revenue Fund,
and Capital Improvement Capital Projects Fund in the Required Supplementary Information and
Supplementary Information sections to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found on pages 25-28 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 31-33 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 37 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 43-78 of this report.
Required supplementary information. In addition to the basic financial statements and
accompanying notes, this report also presents certain required supplementary information
concerning the City of Hermosa Beach’s major funds. Required supplementary information can
be found on pages 80-88 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 97-137 of this report
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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, 2021, total assets and deferred outflows of resources exceeded total
liabilities and deferred inflows of resources by $60,081,812. Without the net pension liability of
$51,477,782, the net position would be $111,559,594.
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
percent 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 2020–21 contributions. The contributions are
deferred to 2021–22 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, 2020.
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).
The largest portion of the City of Hermosa Beach’s net position, $65,145,247 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.
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A portion of the City of Hermosa Beach’s net position $8,376,641 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 ($13,440,076). Excluding the $51,477,782 net pension
liability $38,037,706 is available to meet the City’s ongoing obligations to residents.
At June 30, 2021, 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, 2021 and June 30, 2020.
Governmental Activities. Governmental activities decreased the City of Hermosa Beach’s net
position by $473,913. Significant elements of this change are as follows:
2021 2020
Revenues:
Program Revenues:
Charges For Services 9,175$ 9,048$
Operating Grants and Contributions 2,640 3,419
Capital Grants and Contributions 46 834
General Revenues:
Property Taxes 20,966 19,585
Other Taxes 10,427 9,857
Grants and Contributions Not
Restricted to Specific Programs 2,491 1,829
Other 745 1,500
Total Revenues 46,490 46,072
Expenses:
Legislative and Legal 1,868 1,644
General Government 6,184 6,024
Public Safety 26,943 25,546
Community Development 2,726 3,215
Culture and Recreation 1,571 1,867
Public Works 7,272 7,515
Interest and Fiscal Charges 400 296
Total Expenses 46,964 46,107
Increase (Decrease) in Net Position (474) (35)
Net Position ‐ Beginning 60,556$ 60,591$
Net Position ‐ Ending 60,082$ 60,556$
Changes in Net Positions
June 30, 2021
(dollars in thousands)
Governmental Activities
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Revenue for Governmental Activities
Property tax revenue increased $1,381,501 or 7.1 percent, which is in line with continued
growth in property values.
Sales Tax revenue increased by $470,385 or 17.3 percent. Sales tax receipts for 2020–21
are up from the prior year primarily due to increases in the Other Retail and County and
State Pool categories. The Eating/Drinking category which produces the most sales tax,
was hard hit by the closures due to COVID-19. Sales tax from this category declined 6
percent.
Transient Occupancy Tax (TOT) revenue decreased $46,846 or 1.8 percent. Reported
occupancy rates were down from 63.4 percent for 2019–20 to 44.7 percent in 2020–21.
While the State Stay at Home order due to COVID-19 and pandemic related restrictions
greatly impacted this category, revenue was boosted by a new hotel which opened in
October 2020, three permitted short-term vacation rentals began paying TOT in the
spring, and TOT rate increased from 14 percent from 12 percent. Adjusting the rate in
2019–20 to compare the two years would result in a decrease of 12 percent. The last three
months of the year reflected average occupancy of 73 percent versus 35 percent the prior
year so this is a positive trend. The rate increase was effective January 1, 2020, so fiscal
year 2020–21 was the first full fiscal year under the new rate.
Utility User Tax was up $77,635 or 3.7 percent. The largest increase was in the category
of cellular phone service and cable television.
Capital Grants & Contributions decreased by 787.827 or 94.5 percent due to limited
Capital Improvement Project (CIP) activity due to COVID-19 and staffing constraints.
Real Property Transfer Tax increased $140,265 or 44.8 percent due to the sale of two large
condominiums.
Miscellaneous revenue decreased $754,730 or 50 percent. In 2019–20, there was one-time
prior year reimbursement of $203,000 in the Insurance Fund. Additionally, in 2020-21,
Community Center Rentals declined due to COVID-19 related restrictions and interest
income decreased due to lower interest rates.
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Expenses for Governmental Activities
Expenses for Governmental Activities increased by $856,933 or 1.9 percent.
Legislative and Legal expenses increased by $224,367 or 13.6 percent due to the May 2021 special
election to fill a vacant position on the City Council.
Public Safety expenses increased by $1,396,349 or 5.5 percent. When comparing Public Safety
expenditures in the Statement of Revenue, Expenditures, and Changes in Fund Balance, Public
Safety expenditures are up by $479,484 from 2019-20, primarily due an increase in the unfunded
accrued liability payment (UAL) for Fire retirement costs, the annual increase to the Fire Services
Contract, purchases of body cameras and a new contract for unmanned aerial support program.
Community Development expenses decreased by $489,506 or 15.2 percent. 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 from the Statement of
Revenue, Expenditures, and Changes in Fund Balance, Community Development expenditures are
up by $36,877 over 2019–20.
Culture and Recreation expenses decreased by $295,843 or 15.8 percent primarily due to a full year
of reduced programming as a result of the pandemic.
The remaining functional expense categories had minor changes over the prior year. General
increased by $159,968 or 2.7 percent. Public Works expenses decreased by $243,144 or 3.2 percent.
Interest and fiscal charges increased in 2020–21 in the amount of $104,742 or 35.4 percent.
Revenue: 2020 2019
Property Taxes 20,966,460$ 19,584,959$
Charges for Services 9,175,312 9,048,057
Sales Taxes 3,192,853 3,419,173
Operating Grants & Contributions 2,640,033 2,722,468
Transient Occupancy Tax (TOT) 2,552,964 2,599,810
Other Taxes 2,509,401 2,440,297
Grants & Contributions not Restricted to Specific Programs 2,490,562 2,093,903
Utility Users Taxes 2,171,538 1,829,299
Miscellaneous 745,148 1,499,878
Capital Grants & Contributions 45,817 833,644
Total Revenues 46,490,088$ 46,071,488$
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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.
As of the end of the current fiscal year, the City of Hermosa Beach’s governmental funds reported
combined ending fund balances of $41,914,355, an increase of $6,409,747 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 $575,897 represents prepaid items, primarily comprised of the
July 2021 payment to the County for Fire Services.
Restricted fund balance of $10,427,092 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, M and W Funds, Asset Forfeiture Funds,
Supplemental Law Enforcement Funds (COPS), Fire Protection Funds, and Sewer and Storm
Drain Funds.
Committed fund balance of $4,587,847 which includes retirement stabilization funds and reserves
for a retirement trust.
Assigned fund balance of $21,316,310 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
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this category include Contingency funds (“rainy day” funds), Compensated Absences funds,
Capital Projects, Capital Improvements, Capital Facilities Reserve, and Storm Drain funds.
Unassigned fund balance of $5,007,209, which is the unspent funds of $5,834,252 in the General
Fund reduced by a due to other funds liability of $827,043 primarily for COVID-19 related claims
in the FEMA Fund.
The General Fund, FEMA 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 2020-21 by $6,374,516. The fund balance primarily increased
due to $5,834,252 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 increased by 3.9 percent over 2019–20, which was greatly impacted
by the COVID-19 pandemic and stay at home orders the final four months of the year. The increase
is a result of the following: an increase in property taxes of 7.3 percent, an increase in sales tax of
17.3 percent; an increase in other taxes of 1.6 percent, an increase in licenses and permits of 23.9
percent, and an increase in miscellaneous of 97.8 percent. The increases were partially offset by a
decrease in fines and forfeitures of 1.4 percent, a decrease in use of money and property of 22.4
percent, a decrease in intergovernmental of 20.8 percent, and a decrease in charges for services of
1.4 percent.
General Fund expenditures show a decrease of 1.8 percent. The decrease is primarily due to General
Government, Culture and Recreation, and Capital Outlay. In an effort to balance the 2020–21 budget
after revenue declines as a result of COVID-19, 10 vacant positions were frozen, two positions in
General Government, Deputy City Manager and Management Analyst. The part-time Senior
Account Clerk position was also eliminated. The Assistant to the City Manager position was later
frozen in place of the Deputy City Manager position. The Community Resources department had
reduced expenditures due to reduced programing as a result of the pandemic. Capital Projects were
not funded from the General Fund. Legislative and Legal expenditures increased in 2020–21
primarily due to the May 2021 special election held to fill a vacant City Council seat.
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 requests. Ten (10) staff positions were frozen for 2020–21.
The final amended budget for revenue other than transfers increased by 5 percent from the adopted
budget, based on revenue trends from the first five months of the year. Actual revenue exceeded
the final budget by $2,323,207 or 5.8 percent for the following reasons:
Property tax was up $535,503 or 2.7 percent.
Other taxes were up $721,141 or 8 percent due to conservative year end estimates for TOT.
Hotel occupancy rebounded from the 30 percent assumption based on the prior year.
Fines and Forfeitures were up $151,332 or 7.7 percent primarily due to count fines/parking.
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Charges for Services were up $1,030,210 or 20.5 percent due to conservative year end
budget reductions for parking related revenue and contract recreation classes and other
recreation programs.
While it is good news that actual revenue exceeded the final budget by 5.8 percent, revenue is still
$1,171,316 below 2018–19 or 2.8 percent.
The final amended budget for appropriations other than Transfers Out increased over the original
budget by 2 percent. Actual expenditures other than Transfers Out were less than the final appropriations
by 9.1 percent primarily due to vacant positions and unspent capital improvement program and one-time
funds.
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, 2021, amounts to $65,145,247 (net of accumulated depreciation). This
investment in capital assets includes land, buildings and structures, improvements, machinery and
equipment, park facilities, roads, highways, and monuments.
Capital asset events during the fiscal year included the following:
Governmental Activities
Hermosa Ave Green Street Improvements of $137,500.
Storm Drain Improvements of $173,390.
Council Chamber Improvements of $169,829.
Additional information on the City of Hermosa Beach’s capital assets can be found in Note 6.
Sewer Fund
City Council approved a transfer of $3,000,000 from the Sewer Fund to the General Fund as a part of
the 2020–21 Adopted Budget. This allowed the City to not use any contingency funds to cover the
anticipated revenue shortfall due to the COVID-19 pandemic. The transfer along with sewer
improvements and the annual costs to maintain the City’s sewers net against revenue of $1,315,911
resulted in a decrease in the fund balance of $2,193,538. The ending fund balance in the Sewer Fund is
$3,134,046.
Capital Improvement Fund
Projects funded from the Capital Improvement Fund in 2020-21 include: Fire Station Rehabilitation,
PCH Traffic Improvements, Storm Drain Improvements, Citywide ADA Improvements,
Downtown Strategic Plan Implementation, Police Facilities Improvements, New Corporate Yard
Facilities, Parking Structure Assessment, Municipal Pier Electrical Repairs, Clark Building
Renovations, and City Park Restroom Renovations. The fund balance decreased by $716,214. The
ending fund balance of $8,550,329 includes $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 under the funding of $3 million due to transfers to the General Fund at year-end. Claims
expenses and adjustments for actuarially determined claims payable were higher than expected,
resulting in the ending balance of $1,103,110.
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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 2021–22 Budget includes the fourth full year
with the County, equipment conversion costs, and payments for the renovation of the Fire
Department facility. The 2021–22 Budget also includes the following:
o $6,778,522 is committed for Contingency in the General Fund, which is 16 percent 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 $2,310,878 is transferred to the General Fund from the American Rescue Plan Act
(ARPA) of 2021 Fund to partially restore staffing to pre-pandemic levels and for the
provision of public safety to the extent of the reduction in revenue due to the COVID-19
health emergency.
o $661,345 is transferred from the General Fund for the 2020 Refunding Lease Revenue
Bonds debt service. The 2015 Lease Revenue Bonds were refunded in 2020–21, saving
approximately $1 million over the life of the bonds.
o $19.5 million of Capital Improvement Projects are funded, which includes $3.2 million
in new funding. CIP projects will continue to move forward.
o Healthcare benefits are assumed to increase nine percent for medical and four percent
for dental. The actual rates are typically lower than the assumed increase.
Revenue Trends and Assumptions
What a difference a year makes. In June 2021, the City unemployment rate was 6.2 percent versus June
2020 of 11.4 percent. Los Angeles County was 10 percent versus 17.8 percent as of June 2021. The State’s
unemployment was 8.2 percent versus. 14.2 percent in June 2020. The State’s surplus has grown to $76
billion according to the Governor’s Office or $38 billion according to the Legislative Analyst’s Office.
Either amount is miraculous compared to the projected $54.3 billion deficit for last year.
There are encouraging changes occurring locally with respect to businesses re-opening, the
continuation of enhanced outdoor dining, the virus receding and the ability to move about more freely.
All of these are hopeful signs of a recovery in progress. Since there is no precedent for projecting
revenue under these pandemic circumstances, we are moving forward cautiously. Preliminary revenue
estimates for 2021–22 suggest an increase of four percent, excluding one-time funds.
Property tax, the largest and most stable source of revenue is projected to increase by 3.3 percent. With
the seventeen percent increase in sales tax and increased occupancy in hotels, a recovery seems likely.
Utility user tax revenue has been relatively stable.
The City Council adopted several measures to assist the community and businesses early on during the
stay-at-home order. Additional measures adopted in 2020–21 include:
Business License Taxes were deferred for those closed from March 2020 forward with refunds
given to those who paid but were subsequently closed.
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Restaurant encroachments fees continued to be suspended until further notice.
Temporary permits developed for outdoor dining and outdoor dining areas expanded to assist
restaurants were extended through May 2022.
Temporary moratoriums on foreclosures and evictions implemented for those affected by
COVID-19 were extended through September 2021.
The City’s ongoing 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.
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BASIC FINANCIAL STATEMENTS
17 135
GOVERNMENT-WIDE
FINANCIAL STATEMENTS
18
136
Primary
Government
Governmental
Activities
ASSETS
Current assets:
Cash and investments 52,998,216$
Accounts receivable 3,383,900
Property taxes receivable, net 869,135
Reimbursable grants receivable 363,431
Interest receivable on investments 27,807
Other assets 1,145,009
Total current assets 58,787,498
Noncurrent assets:
OPEB net asset 729,118
Capital assets:
Non-depreciable 28,433,926
Depreciable, net 36,711,321
Total capital assets 65,145,247
Total noncurrent assets 65,874,365
Total assets 124,661,863
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 10,031,616
OPEB related deferred outflows of resources 2,102,063
Total deferred outflows of resources 12,133,679
CITY OF HERMOSA BEACH
Statement of Net Position
June 30, 2021
See accompanying notes to the basic financial statements.
19 137
Primary
Government
Governmental
Activities
LIABILITIES
Current liabilities:
Accounts payable and accrued liabilities 1,782,634
Accrued salaries and benefits payable 828,178
Refundable deposits 355,218
Unearned revenue 53,353
Interest payable 55,088
Workers' compensation claims payable - due within one year 876,000
General liability claims payable - due within one year 414,000
Compensated absences - due within one year 1,145,247
Long-term debt - due within one year 552,105
Total current liabilities 6,061,823
Noncurrent liabilities:
Workers' compensation claims payable - due in more than one year 4,127,237
General liability claims payable - due in more than one year 951,669
Compensated absences - due in more than one year 1,818,884
Long-term debt 9,168,953
Aggregate net pension liability 51,477,782
Total noncurrent liabilities 67,544,525
Total liabilities 73,606,348
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 3,107,382
Total deferred inflows of resources 3,107,382
NET POSITION
Net investment in capital assets 65,145,247
Restricted for:
Capital projects 1,955,262
Street and sewer purposes 2,096,023
Transportation purposes 2,650,724
Public works 212,106
Public safety 1,008,794
Cultural and recreation 445,898
Undergrounding districts 7,834
Total restricted 8,376,641
Unrestricted (Deficit) (13,440,076)
Total net position 60,081,812$
CITY OF HERMOSA BEACH
Statement of Net Position (Continued)
June 30, 2021
See accompanying notes to the basic financial statements.
20 138
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:
Governmental activities:
Legislative and legal 1,868,411$ -$ -$ -$ -$
General government 6,183,616 650,066 298,085 391 948,542
Public safety 26,942,447 4,602,983 215,415 - 4,818,398
Community development 2,725,596 1,494,412 - - 1,494,412
Cultural and recreation 1,571,300 849,247 - 18,582 867,829
Public works 7,272,166 1,578,604 2,126,533 26,844 3,731,981
Interest and fiscal charges 400,465 - - - -
Total governmental activities 46,964,001$ 9,175,312$ 2,640,033$ 45,817$ 11,861,162$
CITY OF HERMOSA BEACH
Statement of Activities
For the Year Ended June 30, 2021
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements.
21 139
Net (expense)
Revenue and
Changes in
Net Position
Primary Government:
Governmental activities:
Legislative and legal (1,868,411)$
General government (5,235,074)
Public safety (22,124,049)
Community development (1,231,184)
Cultural and recreation (703,471)
Public works (3,540,185)
Interest and fiscal charges (400,465)
Total governmental activities (35,102,839)
General revenues:
Taxes:
Property taxes 20,966,460
Sales taxes 3,192,853
Real property transfer tax 453,596
Franchise fees 721,090
Transient occupancy tax 2,552,964
Business license 1,065,762
Utility users tax 2,171,538
½ cent sales tax for public safety 261,051
Other taxes 7,902
Total taxes 31,393,216
Grants and contributions not restricted to specific programs 2,490,562
Miscellaneous 745,148
Total general revenues 34,628,926
Change in net position (473,913)
Net position - beginning of year 60,555,725
Net position - end of year 60,081,812$
Functions/Programs
CITY OF HERMOSA BEACH
Statement of Activities (Continued)
For the Year Ended June 30, 2021
See accompanying notes to the basic financial statements.
22 140
FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23
141
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.
FEMA Special Revenue Fund - This fund is used to account for emergency response related expenditures reimbursed by the
Federal Emergency Management Agency (FEMA).
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
142
Capital
FEMA Improvements
Special Capital Nonmajor
Revenue Projects Governmental
General Fund Fund Funds Total
Cash and investments 17,676,818$ -$ 7,877,739$ 14,571,049$ 40,125,606$
Accounts receivable 2,901,534 - - 482,300 3,383,834
Property taxes receivable, net 841,551 - - 27,584 869,135
Reimbursable grants receivable - - - 363,431 363,431
Interest receivable on investments 13,085 - 6,172 8,550 27,807
Other assets 1,124,692 - - 18,517 1,143,209
Due form other funds 233,075 - 785,889 - 1,018,964
Total assets 22,790,755$ -$ 8,669,800$ 15,471,431$ 46,931,986$
Liabilities:
Accounts payable and accrued liabilities 1,204,272$ 32,952$ 115,549$ 301,773$ 1,654,546$
Accrued wages and benefits payable 762,472 1,801 3,922 42,395 810,590
Refundable deposits 355,218 - - - 355,218
Unearned revenues 53,353 - - - 53,353
Due to other funds - 785,889 - 233,075 1,018,964
Compensated absences,
due within one year 76,500 - - 235 76,735
Total liabilities 2,451,815 820,642 119,471 577,478 3,969,406
Deferred Inflows of Resources:
Unavailable revenue 841,551 - - 206,674 1,048,225
Total deferred inflows of resources 841,551 - - 206,674 1,048,225
Fund Balances:
Nonspendable 560,718 - - 15,179 575,897
Restricted 437,326 - - 9,989,766 10,427,092
Committed 1,995,135 - - 2,592,712 4,587,847
Assigned 10,669,958 - 8,550,329 2,096,023 21,316,310
Unassigned 5,834,252 (820,642) - (6,401) 5,007,209
Total fund balances 19,497,389 (820,642) 8,550,329 14,687,279 41,914,355
Total liabilities, deferred inflows
of resources and fund balances 22,790,755$ -$ 8,669,800$ 15,471,431$ 46,931,986$
June 30, 2021
Major Funds
ASSETS
,
INFLOWS OF RESOURCES, AND
FUND BALANCES
CITY OF HERMOSA BEACH
Balance Sheet
Governmental Funds
See accompanying notes to the basic financial statements.
25 143
Total Fund Balances - Total Governmental Funds 41,914,355$
Nondepreciable, net of Internal Service Fund of $365,074 28,068,852$
Depreciable, net of Internal Service Fund of $3,176,233 33,535,088
Total capital assets 61,603,940
Insurance Fund 1,103,110
Equipment Replacement Fund 8,793,561
Total Internal Service Funds 9,896,671
1,048,225
Lease revenue bonds and premium (9,721,058)
Interest payable (55,088)
(2,882,866) (12,659,012)
Pension related deferred outflows of resources 10,031,616
Pension related deferred inflows of resources (3,107,382)
(51,477,782)
OPEB related deferred outflows of resources 2,102,063
729,118
Net position of governmental activities 60,081,812$
CITY OF HERMOSA BEACH
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
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 $4,530 reported in Internal Service fund and
$76,735 reported in accrued payroll
See accompanying notes to the basic financial statements.
26 144
Capital
FEMA Improvements
Special Capital Nonmajor
Revenue Projects Governmental
General Fund Fund Funds Total
REVENUES:
Property taxes 20,507,313$ -$ -$ 461,090$ 20,968,403$
Other taxes 9,718,854 - - 2,253,485 11,972,339
Licenses and permits 904,362 - - - 904,362
Fines and forfeitures 2,129,829 - - 3,774 2,133,603
Use of money and property 515,241 - - 1,027,330 1,542,571
Intergovernmental 101,955 - - 1,222,208 1,324,163
Charges for services 6,052,751 - - 1,490,965 7,543,716
Miscellaneous 167,815 - 1,350 26,973 196,138
Interest earned on investments (46,868) - 25,494 31,663 10,289
Total revenues 40,051,252 - 26,844 6,517,488 46,595,584
EXPENDITURES:
Current:
Legislative and legal 1,474,436 - - - 1,474,436
General government 4,166,334 571,587 53,167 91,901 4,882,989
Public safety 21,612,013 - 379,716 163,806 22,155,535
Community development 2,062,104 - - 115,686 2,177,790
Culture and recreation 1,326,493 - - 12,200 1,338,693
Public works 5,277,781 - - 1,303,554 6,581,335
Capital outlay 46,545 - 313,175 493,810 853,530
Debt service:
Interest and fiscal charges - - - 491,542 491,542
Cost of issuance - - - 229,987 229,987
Total expenditures 35,965,706 571,587 746,058 2,902,486 40,185,837
REVENUES OVER (UNDER)
EXPENDITURES 4,085,546 (571,587) (719,214) 3,615,002 6,409,747
OTHER FINANCING
SOURCES (USES):
Transfers in 3,396,606 - - 1,107,636 4,504,242
Transfers out (1,107,636) - - (3,396,606) (4,504,242)
Total other financing
sources (uses) 2,288,970 - - (2,288,970) -
NET CHANGE IN FUND BALANCE 6,374,516 (571,587) (719,214) 1,326,032 6,409,747
Fund balances, beginning of year,
as restated 13,122,873 (249,055) 9,269,543 13,361,247 35,504,608
Fund balances, end of year 19,497,389$ (820,642)$ 8,550,329$ 14,687,279$ 41,914,355$
Major Funds
CITY OF HERMOSA BEACH
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2021
See accompanying notes to the basic financial statements.
27 145
Net Change in Fund Balances - Total Governmental Funds 6,409,747$
Governmental activities in the Statement of Activities were reported differently because:
Total capital outlay expenditures reported in governmental funds 853,530$
Less: repair and maintenance expenditures (104,202)
Total capital outlay 749,328
455
Total depreciation reported in Government-wide Statement of Activities (2,863,615)
Less: depreciation reported in the Internal Service Fund 639,550
Total (2,224,065)
(313,251)
(2,983,522)
449,969
(1,391,325)
320,897
(1,492,146)
Change in net position of governmental activities (473,913)$
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.
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, 2021
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
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.
28 146
PROPRIETARY FUND
FINANCIAL STATEMENTS
Internal Service Funds - To account for the costs associated with the City's insurance and for funding equipment
replacement.
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148
Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:
Cash and investments 12,872,610$
Account receivables 66
Other assets 1,800
Total current assets 12,874,476
Noncurrent assets:
Nondepreciable capital assets 365,074
Depreciable capital assets, net of accumulated depreciation 3,176,233
Total noncurrent assets 3,541,307
Total assets 16,415,783
LIABILITIES
Current liabilities:
Accounts payable 128,088
Accrued wages and benefits payable 17,588
Workers' compensation claims payable - due within one year 876,000
General liability claims payable - due within one year 414,000
Compensated absences - due within one year 4,530
Total current liabilities 1,440,206
Long-term liabilities:
Workers' compensation claims payable - due in more than one year 4,127,237
General liability claims payable - due in more than one year 951,669
Total long-term liabilities 5,078,906
Total liabilities 6,519,112
NET POSITION
Net investment in capital assets 3,541,307
Unrestricted 6,355,364
Total net position 9,896,671$
CITY OF HERMOSA BEACH
Statement of Net Position
Proprietary Funds
June 30, 2021
See accompanying notes to the basic financial statements.
31 149
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:
Charges for services 4,706,340$
Miscellaneous revenue 33,757
Total operating revenues 4,740,097
OPERATING EXPENSES:
Salaries and wages 368,407
Contract services 2,197,994
Supplies 311,057
Claims expense 2,716,103
Depreciation 639,550
Total operating expenses 6,233,111
OPERATING INCOME (1,493,014)
NON-OPERATING REVENUES (EXPENSES):
Gain on disposal of capital assets 868
Total non-operating revenues (expenses)868
Change in net position (1,492,146)
Net position, beginning of year 11,388,817
Net position, end of year 9,896,671$
CITY OF HERMOSA BEACH
Statement of Revenues, Expenses, and Changes in Net Position
Proprietary Funds
For the year ended June 30, 2021
See accompanying notes to the basic financial statements.
32 150
Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services from other funds 4,706,340$
Cash received from insurance recovery 30,007
Cash payments to suppliers for goods and services (2,716,827)
Cash payments to employees for services (342,056)
Cash payments for insurance premiums and claims (2,257,858)
Net cash provided (used by) operating activities (580,394)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets (703,304)
Proceeds from sale of capital assets 1,322
Net cash provided (used by) capital and related financing activities (701,982)
Net increase (decrease) in cash and cash equivalents (1,282,376)
Cash and equivalents, beginning of year 14,154,986
Cash and equivalents, end of year 12,872,610$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:
Operating income (loss) (1,493,014)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation 639,550
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 4,046
Increase (decrease) in accounts payable (177,069)
Increase (decrease) in accrued wages and benefits payable (5,077)
Increase (decrease) in workers' compensation claims payable 325,905
Increase (decrease) in general liability claims payable 146,269
Increase (decrease) in compensated absences (21,004)
Total adjustments 912,620
Net cash provided (used) by operating activities (580,394)$
CITY OF HERMOSA BEACH
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
See accompanying notes to the basic financial statements.
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FIDUCIARY FUND
FINANCIAL STATEMENTS
Custodial Funds- are used to account for assets held by the City in the capacity of agent for individuals. Custodial Fund
spending is controlled primarily through legal agreements and applicable State and Federal laws. The Custodial 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.
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154
Custodial
Funds
ASSETS
Cash and investments 340,077$
Interest receivable 144
Other receivable 1,814
Total assets 342,035$
LIABILITIES
Assessment:
Installment account 329,035$
Reserve requirement 13,000
Total Liabilities 342,035$
CITY OF HERMOSA BEACH
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying notes to the basic financial statements.
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156
NOTES TO THE BASIC
FINANCIAL STATEMENTS
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City of Hermosa Beach
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Page
Note 1 – Summary of Significant Accounting Policies .............................................................................................. 43
A. Financial Reporting Entity ........................................................................................................................... 43
B. Basis of Accounting and Measurement Focus .......................................................................................... 44
C. Cash and Investments ................................................................................................................................... 46
D. Fair Value Measurement .............................................................................................................................. 46
E. Property Taxes Receivable .......................................................................................................................... 47
F. Interfund Transactions .................................................................................................................................. 47
G. Capital Assets ................................................................................................................................................ 47
H. Unearned and Unavailable Revenue ........................................................................................................... 48
I. Claims Payable .............................................................................................................................................. 48
J. Compensated Absences Payable ................................................................................................................. 48
K. Pensions .......................................................................................................................................................... 48
L. Other Postemployment Benefits (“OPEB”) .............................................................................................. 49
M. Net Position .................................................................................................................................................... 49
N. Fund Balances ................................................................................................................................................ 49
O. Spending Policy ............................................................................................................................................. 50
P. Use of Estimates ............................................................................................................................................ 51
Q. Accounting Changes ..................................................................................................................................... 51
Note 2 – Cash and Investments ...................................................................................................................................... 52
A. Deposits .......................................................................................................................................................... 52
B. Investments ..................................................................................................................................................... 53
C. Investment in Los Angeles County Investment Pool ............................................................................... 53
D. Fair Value Measurement .............................................................................................................................. 54
E. Risk Disclosures ............................................................................................................................................ 54
Note 3 – Receivables .......................................................................................................................................................... 55
A. Government-Wide Financial Statements ................................................................................................... 55
B. Fund Financial Statements ........................................................................................................................... 55
Note 4 – Lease Revenues .................................................................................................................................................. 56
Note 5 – Interfund Transactions .................................................................................................................................... 57
Note 6 – Capital Assets ..................................................................................................................................................... 59
Note 7 – Long-Term Liabilities ...................................................................................................................................... 60
Note 8 – Risk Management ............................................................................................................................................. 60
Note 9 – Defined Benefit Pension Plans ........................................................................................................................ 62
Note 10 – Other Postemployment Benefit Plan .......................................................................................................... 71
Note 11 – Classification of Fund Balances ................................................................................................................... 75
41 159
City of Hermosa Beach
Index to Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Page
Note 12 – Non-City Obligations ....................................................................................................................................... 76
Note 13 – Commitments and Contingencies ................................................................................................................. 77
A. Commitments ................................................................................................................................................. 77
B. Contingencies ................................................................................................................................................. 77
C. Grants .............................................................................................................................................................. 77
D. Ongoing Operations ...................................................................................................................................... 77
Note 14 – Fund Balance and Net Position Restatement ............................................................................................. 78
Note 15 – Subsequent Events ............................................................................................................................................ 78
42 160
City of Hermosa Beach
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
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.
43 161
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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
44 162
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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 funds:
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.
FEMA Special Revenue Fund – This fund is used to account for emergency response related expenditures
reimbursed by the Federal Emergency Management Agency.
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.
45 163
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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.
46
164
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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
47
165
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2018
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
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.
48 166
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
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.
49
167
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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.
50 168
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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.
The City implemented Statement on Governmental Accounting Standards (GASB Statement) No. 98, The
Comprehensive Financial Report, which establishes the term annual comprehensive financial report and its
acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its
acronym in generally accepted accounting principles for state and local governments.
51 169
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021:
Government-Wide
Statement of
Net Position Statement of
Governmental Fiduciary
Activities Net Position Total
Cash and investments $ 52,998,216 $ 340,077 $ 53,338,293
The City’s cash and investments at June 30, 2021 in more detail:
Cash and cash equivalents:
Demand deposits $ 17,302,507
Petty cash 2,000
Total cash and cash equivalents 17,304,507
Investments:
Local Agency Investment Fund 10,307,735
Los Angeles County Pooled Investments Funds 16,799,509
US Government Treasuries 1,481,365
Negotiable Certificates of Deposit 7,445,177
Total investments 36,033,786
Total cash and investments $ 53,338,293
A. Deposits
The carrying amounts of the City’s demand deposits were $17,267,946 at June 30, 2021. Bank balances at that
date were $18,321,014, 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 fair 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.
52
170
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021, the City had $10,307,735 invested in LAIF, which had invested 0.01% 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, 2021, the City had
$16,799,509 invested in the Los Angeles County Investment Pool.
53 171
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2021, 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, 2021:
Investment Type Value Level 1 Level 2 Uncategorized
Local Agency Investment Fund $ 10,307,735 $
-
$ - $ 10,307,735
Los Angeles County Pooled
Investments Fund 16,799,509 - 16,799,509
US Government Treasuries 1,481,365 1,481,365 - -
Negotiable Certificates of Deposit 7,445,177 - 7,445,177
Total $ 36,033,786 $
1,481,3654
$ - $ 34,552,421
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, 2021, 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 $ 10,307,735 $ 10,307,735 $ - $ - $ - $ -
Los Angeles County Pooled
Investments Fund 16,799,509 16,799,509 - - - -
US Government Treasuries 1,481,365 - - - 1,481,365 -
Negotiable Certificates of Deposit 7,445,177 1,995,427 2,058,490 1,843,512 1,547,748 -
Total $ 36,033,786 $ 29,102,671 $ 2,058,490 $ 1,843,512 $ 3,029,113 $ -
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, 2021,
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 28.61%
Los Angeles County Pooled Investments Fund Not Rated Not Rated 46.62%
US Government Treasuries Not Rated Not Rated 4.11%
Negotiable Certificates of Deposits Not Rated Not Rated 20.66%
Total 100.00%
54
172
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021.
Note 3 - Receivables
A. Government-Wide Financial Statements
At June 30, 2021, 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 $ 3,383,900 $ - $ 3,383,900
Property taxes receivable, net 869,135 - 869,135
Reimbursable grants receivable 363,431 - 363,431
Interest receivable on investments 27,807 144 27,951
Other receivables - 1,814 1,814
Total $ 4,644,273 $ 1,958 $ 4,646,231
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, 2021, were as follows:
Governmental funds:
General Fund $ 2,901,534
Nonmajor Funds 482,300
Total governmental funds 3,383,834
Total accounts receivable $ 3,383,834
55 173
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 3 – Receivables (Continued)
B. Fund Financial Statements (Continued)
Taxes Receivable
At June 30, 2021, 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 $ 1,316,221 $ (474,670) $ 841,551
Nonmajor funds 64,704 (37,120) 27,584
Total $ 1,380,925 $ (511,790) $ 869,135
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, 2021 was as follows:
Governmental Funds:
Nonmajor Governmental Funds $ 363,431
Total reimbursable grants receivable $ 363,431
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 $3,398 to January 2021 and $3,500 from
February 2021.
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 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 $20,000.
56 174
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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 $2,782 February 2020 and $2,952 from March 2021.
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
2022 $ 440,424
2023 384,262
2024 386,682
2025 303,600
2026 78,810
2027-2031 297,583
2032-2036 312,462
2037-2041 328,085
2042-2046 344,490
2047-2051 323,923
Total
$ 3,199,921
Lease revenue for the year ended June 30, 2021 was $387,461.
Note 5 – Interfund Transactions
Due From/To Other Funds – At June 30, 2021, the City had the following due from/to other funds:
Due From Other Funds
Due To Other Funds
General Capital
Fund Improvements Total
FEMA $ - $ 785,889 $ 785,889
Nonmajor Governmental funds 233,075 - 233,075
Total $ 233,075 $ 785,889 $ 1,018,964
The above amount resulted from the time lag between the dates that reimbursable expenditures occur and payments
are received from other agencies.
57
175
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 5 – Interfund Transactions (Continued)
Transfers
During the year ended June 30, 2021, the City had the following transfers:
Transfers in
Nonmajor
General Governmental
Transfers out Fund Funds Total
General Fund $ - $ 1,107,636 $1,107,636
Nonmajor Governmental
Funds
3,396,606
-
3,396,606
Total $3,396,606 $ 1,107,636 $4,504,242
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 $816,634 to the 2015 Lease Revenue Bond Fund for debt service payment.
General Fund transferred $291,002 to Lighting /Landscaping Fund to cover deficit.
Nonmajor Governmental Funds transferred $396,606 for Lighting/Landscaping administration, street maintenance
and traffic safety operations, parks maintenance allocation and agency administration. Sewer Fund transferred
$3,000,000 to the General Fund to return Funds transferred in 2014-15.
58 176
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 – Capital Assets
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30,
2021:
Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Capital assets not being depreciated:
Land $ 22,740,168 $ - $ - $ 22,740,168
Construction in progress 4,842,294 851,464 - 5,693,758
Total capital assets not being depreciated 27,582,462 851,464 - 28,433,926
Capital assets being depreciated:
Buildings and structures 13,619,166 - - 13,619,166
Improvements other than buildings 15,362,907 - - 15,362,907
Machinery and equipment 6,637,547 349,855 - 6,987,402
Vehicles 4,066,873 251,044 - 4,317,917
Infrastructure 55,081,405 - - 55,081,405
Total capital assets being depreciated 94,767,898 600,899 - 95,368,797
Less accumulated depreciation for:
Buildings and structures (5,973,191) (259,852) - (6,233,043)
Improvements other than buildings (13,239,809) (225,769) - (13,465,578)
Machinery and equipment (4,519,370) (500,906) - (5,020,276)
Vehicles (2,272,499) (324,398) - (2,596,897)
Infrastructure (29,788,992) (1,552,690) - (31,341,682)
Total accumulated depreciation (55,793,861) (2,863,615) - (58,657,476)
Total capital assets being depreciated, net 38,974,037 (2,262,716) - 36,711,321
Total governmental activities $ 66,556,499 $ (1,411,252) $ - $ 65,145,247
Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30,
2021 as follows:
Legislative and legal $ 84,913
General government 281,213
Public safety 1,275,947
Community development 125,420
Culture and recreation 77,096
Public works 1,019,026
Total depreciation expense $ 2,863,615
59
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 7 – Long-Term Liabilities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2021 is as
follows:
Classification
Balance Balance Due within Due in more
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Year
2015 Lease revenue bond $ 9,890,000 $ - $ (9,890,000) $ - $ - $-
Bonds Premium 157,508 - (157,508) - - -
2020 Lease revenue bond - 8,150,000 - 8,150,000 395,000 7,755,000
Bonds Premium - 1,571,058 - 1,571,058 157,105 1,413,953
Compensated absences 2,779,200 1,350,194 (1,165,263) 2,964,131 1,145,247 1,818,884
$ 12,826,708 $ 11,071,252 $ (11,212,771) $ 12,685,189 $ 1,697,352 $ 10,987,837
2020 Lease Revenue Bonds
In October 2020, the PFA issued $8,150,000 Hermosa Beach Public Financing Authority 2020 Lease Revenue
Bonds to (i) refund and defease the 2015 Lease revenue bonds and (ii) pay the costs of issuing the 2020 Bonds.
Interest rate is 4% and is payable semiannually on May 1 and November 1 of each year, commencing May 1,
2021. Principal payments range from $395,000 to $715,000 commencing November 2021 through November
2035. The 2020 bonds are secured solely by the pledge revenues and certain funds held under the indenture. The
2020 bonds are not secured by a pledge of the taxing power of the City. Upon default, the payment in default will
continue as an obligation of the City until the amount in default has been fully paid, and the City agrees to pay the
same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any
Outstanding 2020 Bond. The outstanding balance at June 30, 2021 was $8,150,000.
The annual debt service requirements by year are as follows:
Year ending
June 30, Principal Interest Total
2022 $ 395,000 $ 330,528 $ 725,528
2023 415,000 310,200 725,200
2024 435,000 293,600 728,600
2025 450,000 276,200 726,200
2026 470,000 258,200 728,200
2027-2031 2,675,000 992,200 3,667,200
2032-2036 3,310,000 407,600 3,717,600
$ 8,150,000 $ 2,2868,528 $11,018,528
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”).
60
178
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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 $974,140 for the fiscal year 2020-2021 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 $6,368,906 reported at June 30, 2021 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
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
2020-2021 4,677,332 1,174,836 (848,931) 5,003,237 876,000 4,127,237
General Liability
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
2020-2021 1,219,400 531,990 (385,721)1,365,669 414,000 951,669
Detailed financial information may be obtained from the ICRMA Program Administrator located at 18201 Von
Karman, Suite 200, Irvine, CA 92612.
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179
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021 and pension expenses for the year then ended June 30, 2021:
Miscellaneous Safety Total
Deferred outflows of resources:
Pension contribution after measurement date $ 1,632,690 $ 3,339,197 $ 4,971,887
Difference between expected and actual experience 809,589 2,773,601 3,583,190
Adjustment due to differences in proportions 47,514 - 47,514
Difference between projected and actual
investment earnings 466,694 777,382 1,244,076
Difference between City contributions and
proportionate share of contributions - 184,949 184,949
Total deferred outflows of resources
$ 2,956,487 $ 7,075,129 $ 10,031,616
Aggregate Net pension liabilities:
Aggregate Net pension liabilities $ 15,710,118 $ 35,767,664 $ 51,477,782
Total net pension liabilities
$ 15,710,118 $ 35,767,664 $ 51,477,782
Deferred inflows of Resources:
Changes of assumptions $ 112,051 $ 119,143 $ 231,194
Adjustment due to differences in proportions 87,854 1,317,706 1,405,560
Difference between City contributions and
proportionate share of contributions 161,320 1,309,309 1,470,629
Total deferred inflows of Resources
$ 361,225 $ 2,746,157 $ 3,107,383
Pension expenses:
$ 2,633,614 $ 5,321,962 $ 7,955,576
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.
62 180
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2021, 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 2 9
Transferred and terminated employees 12 1 3 4 2 5
Separated 4 1 1 4 2 3
Retired Employees and Beneficiaries 60 - -93 2 1
Total 76 2 4 122 8 18
Plans
Misc. Tier 1 Misc. Tier 2 Misc. PEPRA
Active employees 31 16 63
Transferred and terminated employees 42 11 28
Separated 47 5 25
Retired Employees and Beneficiaries 146 1 -
Total 266 33 116
Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan
members and beneficiaries. Classic and PEPRA Safety CalPERS members become 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)
63
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021, the contributions recognized as part of pension expense for the
plan totaled $7,955,576 For the measurement period ended June 30, 2020 (the measurement date), the average
contribution rate were as follows:
Active Employee Employer
Plans Contribution Rate Contribution Rate
Fire Tier 1 0.000% $842,527
Fire Tier 2 0.000% $ 0
Fire PEPRA 0.000% $ 3,586
Police Tier 1 9.000% 78.450%
Police Tier 2 9.000% 22.380%
Police PEPRA 12.750% 14.220%
Misc. Tier 1 7.000% 49.920%
Misc. Tier 2 7.000% 10.420%
Misc. PEPRA 6.750% 8.040%
64 182
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2019 valuation was rolled forward to determine June 30, 2020 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, 2018 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.
65
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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
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 Estate 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 $ 23,795,937 $ 15,710,118 $ 9,029,060
Safety
$ 52,631,448 $ 35,767,664 $ 21,929,333
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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: 6/30/19 (Valuation date) $ 59,281,280 $ 44,433,038 $ 14,848,242
Balance at: 6/30/20 (Measurement date) $ 60,761,093 $ 45,050,975 $ 15,710,118
Net Changes during 2019-2020 $ 1,479,813 $ 617,937 $ 831,876
Safety
Balance at: 6/30/18 (Valuation date) $ 120,919,892 $ 86,781,222 $ 34,138,671
Balance at: 6/30/19 (Measurement date) $ 124,177,639 $ 88,409,976 $ 35,767,664
Net Changes during 2018-2019 $ 3,257,747 $ 1,628,754 $ 1,628,993
67
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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
fair 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, 2020 0.37079% 0.54687%
June 30, 2021 0.37245% 0.53686%
Change - Increase (Decrease) 0.00166% -0.01001%
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021, the City recognized pension expense as follows:
Miscellaneous $ 2,633,614
Safety 5,321,962
$ 7,955,576
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, 2021, 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 $ 1,632,690 $ -
Difference between expected and actual experience 809,589 -
Changes of assumptions - (112,051)
Difference between projected and actual earning on
pension plan investments 466,694 -
Adjustment due to differences in proportions 47,514 (87,854)
Difference between City contributions and
proportionate share of contributions - (161,320)
Total $ 2,956,487 $ (361,225)
69 187
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2021, 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 $ 3,339,197 $ (119,143)
Difference between expected and actual experience 2.773,601 -
Difference between projected and actual earning on
pension plan investments 777,382 -
Adjustment due to differences in proportions - (1,317,706)
Difference between City contributions and
proportionate share of contributions 184,949 (1,309,309)
Total $ 7,075,129 $ (2,746,157)
At June 30, 2021, 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, 2022.
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
2022 $ 32,932 $ (241,241)
2023 377,293 425,819
2024 328,507 415,685
2025 223,840 389,512
2026 - -
Thereafter - -
$ 962,572 $ 989,775
70 188
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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.
71
189
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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 Memoranda 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, 2021 were as follows:
Participants Total
Active employees 123
Retirees 69
Retirees not receiving benefits 3
Total 195
Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the
net OPEB liability was determined by an actuarial valuation as of July 1, 2020.
Actuarial Assumptions
The total OPEB liability, measured as of June 30, 2020, 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, 2020 valuation were based on the results of an actuarial
experience study for the period July 1, 2019 through June 30, 2020.
72 190
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2020:
Plan's OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.00%) Rate (6.00%) (7.00%)
$ 904,901 $ (729,118) $ (2,108,993)
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, 2020:
Plan's OPEB Liability/(Asset)
Healthcare
-1.00% Trend Rate +1.00%
$ (2,004,473) $ (729,118) $ 804,210
73 191
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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, 2019 (Valuation Date)
$ 12,861,634 $ 13,413,070 $ (551,436)
Changes Recognized for the Measurement Period:
Service Cost 385,000 - 385,000
Interest on the total OPEB liability 779,630 - 779,630
Changes of benefit terms - - -
Difference between expected and actual experience - - -
Changes of assumptions - - -
Contributions from the employer - 870,427 (870,427)
Contributions from employees - - -
Net investment income, net of administrative expense - 504,213 (504,213)
Benefit payments, including refunds of employee contributions (505,591) (505,591) -
Administrative Expense - (32,328) 32,328
Net Changes during July 1, 2019 to June 30, 2020 659,039 836,721 (177,682)
Balance at June 30, 2020 (Measurement Date) $ 13,520,673 $ 14,249,791 $ (729,118)
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB
For the year ended June 30, 2021, OPEB expense in the amount of $532,478 is included in the accompanying
statement of activities.
At June 30, 2021, 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 $ 982,447 $ -
Differences between expected and actual experience 461,709 -
Changes in assumptions 563,076 -
Difference between projected and actual earning
on plan investments 94,831 -
$ 2,102,063 $ -
The $982,447 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, 2022. Other amounts reported as deferred inflows
of resources related to OPEB will be recognized as OPEB expense as follows:
Year Ending
June 30 Amount
2022 $ 146,966
2023 225,967
2024 229,381
2025 251,621
2026 189,776
Thereafter 75,905
Total $ 1,119,616
74 192
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 11 – Classification of Fund Balances
At June 30, 2021, fund balances are classified in the governmental funds as follows:
General
Fund
FEMA
Special
Revenue
Fund
Capital
Improvements
Capital
Projects
Nonmajor
Governmental
Funds
Total
Nonspendable
Prepaid items $ 560,718 $ - $ - $ 15,179 $ 575,897
Total nonspendable 560,718 - - 15,179 575,987
Restricted
Verizon PEG Grant 58,695 - - - 58,695
General Plan
Maintenance Fees
285,938
-
-
-
258,938
Chamber Marquee Donation 50,000 - - - 50,000
CASP Fees 42,693 - - - 42,693
Lighting District - - - 162,106 162,106
Gas Tax - - - 943,992 943,992
Source Reduction/Recycling - - - 176,947 176,947
Greenwich Underground - - - 120,898 120,898
Parks/Rec Facility Projects - - - 445,898 445,898
Undergrounding Districts - - - 7,834 7,834
Prop A, C and Measure
R Transit Projects
-
-
-
2,650,724
2,650,724
Air Quality
Improvement Projects
-
-
-
84,634
84,634
Supplemental Law
Enforcement Services Funds
-
-
-
345,206
345,206
Asset Forfeiture – Drug
Enforcement and Education
-
-
-
636,813
636,813
Fire Protection - - - 26,775 26,775
Community Development
Block Grant
-
-
-
3,192
3,192
Grants - - - 326,975 326,975
Measure M and W - - - 378,814 378,814
RTI Undersea Cable
Tidelands
-
-
-
449,671
449,671
Lease Revenue Bond - - - 95,223 95,223
Sewers and Storm Drains - - - 3,134,046 3,134,046
Total restricted 437,326 - - 9,989,766 10,427,092
Committed
In Lieu Fee- Parking
Facilities
144,500
-
-
-
144,500
RTI Undersea Cable - - - 848,138 848,138
Tyco &Tyco Tidelands - - - 1,744,592 1,744,592
Retirement Trust 829,060 - - - 829,060
Retirement Rate Stabilization 1,021,575 - - - 1,021,575
Total committed 1,995,135 - - 2,592,712 4,587,847
Assigned
Capital Projects 40,411 - 7,282,361 - 7,322,772
Capital Facility Reserve - - 1,267,968 - 1,267,968
Storm Drains - - - 2,096,023 2,096,023
Fund Balance Carryforward
for 20-21 Budget
1,823,416
-
-
-
1,823,416
Reappropriations 590,913 - - - 590,913
Contingencies 5,739,992 - - - 5,739,992
Compensated absences 267,950 - - - 267,950
Prop A Exchange 455,549 - - - 455,549
19-20 Year End
Balance
1,751,727
-
-
-
1,751,727
Total assigned 10,669,958 - 8,550,329 2,096,023 21,316,310
Unassigned 5,834,252 (820,642) - (6,401) 5,007,209
$19,497,389 $(820,642) $ 8,550,329 $ 14,687,279 $ 41,914,355
75 193
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
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
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
$ 113,923 $ 9,337 $ 123,260
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
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 $ 266,455 $ 29,429 $ 295,884
76 194
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 13 – Commitments and Contingencies
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2021. These projects
are evidenced by contractual commitments with contractors and include:
Commitment
Project Spent to Date Remaining
Permit Software Upgrade and Integration Project $ 564,993 $ 114,045
Fire Department Facility and Equipment Conversion 1,019,788 1,013,883
Total $ 1,584,781 $ 1,127,928
Of the commitments listed above, $949,290 represents commitments in the Capital Projects Fund, $114,045
represents commitments in Internal Service Funds, and $64,593 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 2020-2021 is $166,229. The County contract ends in 2027.
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.
77
195
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 14 – Fund Balance and Net Position Restatement
The following schedule summarizes the effects of the prior period adjustment to the Fund Financial Statements.
Governmental Funds:
Grants
Special
Revenue
Fund
Fund balance at June 30, 2020,
as previously reported $ 425,732
Adjustment made to prior year:
Understatement of
Unavailable revenue (197,012)
Fund balance as July 1, 2020, as restated $ 228,720
Note 15 – Subsequent Events
Management has evaluated subsequent events through March 31, 2022 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.
78
196
REQUIRED SUPPLEMENTARY
INFORMATION (UNAUDITED)
79
197
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2020 13,122,873$ 13,122,873$ 13,122,873$ -$
Revenues (inflows):
Property taxes 19,971,254 19,971,810 20,507,313 535,503
Other taxes 8,273,672 8,997,713 9,718,854 721,141
Licenses and permits 905,881 902,093 904,362 2,269
Fines and forfeitures 1,033,230 1,978,497 2,129,829 151,332
Use of money and property 680,085 543,191 515,241 (27,950)
Intergovernmental 143,510 126,895 101,955 (24,940)
Charges for services 4,674,001 5,022,541 6,052,751 1,030,210
Miscellaneous 66,145 93,044 167,815 74,771
Interest earned on investments 201,689 92,261 (46,868) (139,129)
Transfers in 3,396,734 3,396,606 3,396,606 -
Amount available for appropriations 39,346,201 41,124,651 43,447,858 2,323,207
Charges to appropriations (outflows):
Legislative and legal 997,331 1,406,971 1,474,436 (67,465)
General government 4,526,623 5,134,781 4,166,334 968,447
Public safety 23,722,158 23,301,190 21,612,013 1,689,177
Community development 2,181,511 2,133,066 2,062,104 70,962
Culture and recreation 1,240,732 1,227,482 1,326,493 (99,011)
Public works 5,843,709 6,032,839 5,277,781 755,058
Capital outlay 187,704 338,345 46,545 291,800
Transfers out 3,396,734 1,776,701 1,107,636 669,065
Total charges to appropriations 42,096,502 41,351,375 37,073,342 4,278,033
Fund balance, June 30, 2021 10,372,572$ 12,896,149$ 19,497,389$ (1,954,826)$
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2021
Budgeted Amounts
80 198
Actual Variance with
Original Final Amounts Final Budget
Fund balance (deficit), July 1, 2020 -$ (249,055)$ (249,055)$ -$
Revenues (inflows):
Intergovernmental - - - -
Amount available for appropriations - - - -
Charges to appropriations (outflows):
General government 125,929 - 571,587 (571,587)
Total charges to appropriations 125,929 - 571,587 (571,587)
Fund balance (deficit), June 30, 2021 (125,929)$ (249,055)$ (820,642)$ 571,587$
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - FEMA Special Revenue Fund
For the Year Ended June 30, 2021
Budgeted Amounts
81 199
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.
82
200
June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2020-21 2019-20 2018-19 2017-18 2016-17
City's Proportion of the Net
Pension Liability/(Asset) 0.37245% 0.37079% 0.37090% 0.14664% 0.14882%
City's Proportionate share
of the Net Pension Liability/(Asset)15,710,118$ 14,848,242$ 13,978,150$ 14,452,712$ 12,877,883$
City's Covered payroll 7,191,189$ 7,192,641$ 7,402,032$ 6,785,443$ 6,540,869$
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 218.46% 206.44% 188.84% 213.00% 196.88%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 74.14% 75.95% 74.50% 72.80% 73.59%
June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year
2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset)0.15099% 0.16331%
City's Proportionate share
of the Net Pension Liability/(Asset)10,364,015$ 10,161,668$
City's Covered payroll 5,700,485$ 5,355,599$
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 181.81% 189.74%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 78.00% 78.34%
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 seven years are presented.
CITY OF HERMOSA BEACH
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios
For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan
Required Supplementary Information (Unaudited) (Continued)
83 201
June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1
Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year
2020-21 2019-20 2018-19 2017-18 2016-17
City's Proportion of the Net
Pension Liability/(Asset)0.53686% 0.54687% 0.57283% 0.35213% 0.37217%
City's Proportionate share
of the Net Pension Liability/(Asset) 35,767,664$ 34,138,671$ 33,611,333$ 34,921,802$ 32,204,127$
City's Covered payroll 4,130,518$ 4,108,280$ 5,320,583$ 5,597,657$ 5,342,937$
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 865.94% 830.97% 631.72% 623.86% 602.74%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 71.20% 71.77% 71.23% 69.01% 68.78%
June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year
2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset)0.40019% 0.42012%
City's Proportionate share
of the Net Pension Liability/(Asset) 27,469,000$ 26,141,972$
City's Covered payroll 5,492,822$ 5,065,109$
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 500.09% 516.12%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 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 seven years are presented.
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
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") Safety Plan
84 202
2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contribution 2 693,322$ 618,021$ 575,931$ 527,115$ 518,722$
Contributions in relation to
the actuarially determined
contributions 2 (1,632,690)$ (1,907,072)$ (1,682,561)$ (1,516,745)$ (1,379,151)$
Contribution deficiency
(excess) (939,368)$ (1,289,051)$ (1,106,630)$ (989,630)$ (860,429)$
Covered payroll 2 7,613,425$ 7,191,189$ 7,192,641$ 7,402,032$ 6,785,443$
Contributions as a
percentage of covered
employee payroll 21.44% 26.52% 23.39% 20.49% 20.33%
2015-16 2014-15 2013-14 1
Actuarially determined
contribution 2 469,656$ 883,493$ 799,637$
Contributions in relation to
the actuarially determined
contributions 2 (1,245,120)$ (883,493)$ (799,637)$
Contribution deficiency
(excess) (775,464)$ -$ -$
Covered payroll 2 6,540,869$ 5,700,485$ 5,355,599$
Contributions as a
percentage of covered
employee payroll 19.04% 15.50% 14.93%
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 eight 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
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2021
Last Ten Fiscal Years
85 203
2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contribution 2 996,107$ 753,728$ 804,633$ 1,016,858$ 1,029,129$
Contributions in relation to
the actuarially determined
contributions 2 (3,342,664)$ (2,799,261)$ (3,878,196)$ (4,226,782)$ (3,921,179)$
Contribution deficiency
(excess) (2,346,557)$ (2,045,533)$ (3,073,563)$ (3,209,924)$ (2,892,050)$
Covered payroll 2 4,516,727$ 4,130,518$ 4,108,280$ 5,320,583$ 5,597,651$
Contributions as a
percentage of covered
employee payroll 74.01% 67.77% 94.40% 79.44% 70.05%
2015-16 2014-15
2013-14 1
Actuarially determined
contribution 2 1,033,371$ 2,842,420$ 1,923,392$
Contributions in relation to
the actuarially determined
contributions 2 (3,698,115)$ (2,842,420)$ (1,923,392)$
Contribution deficiency
(excess) (2,664,744)$ -$ -$
Covered payroll 2 5,342,937$ 5,492,822$ 5,065,109$
Contributions as a
percentage of covered
employee payroll 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 eight 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") Safety Plan
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2021
Last Ten Fiscal Years
86 204
For the Measurement Period:2019-20 2018-19 2017-18 2016-17
Total OPEB Liability
Service cost 385,000$ 327,066$ 317,540$ 326,000$
Interest on the total OPEB Liability 779,630 661,475 631,597 624,000
Actual and expected experience difference - 632,713 - -
Changes in assumptions - 771,624 - -
Changes in benefit terms - - - (381,000)
Benefit payments (505,591) (457,550) (463,831) (399,000)
Net change in total OPEB liability 659,039 1,935,328 485,306 170,000
Total OPEB liability - beginning 12,861,634 10,926,306 10,441,000 10,271,000
Total OPEB liability - ending (a) 13,520,673$ 12,861,634$ 10,926,306$ 10,441,000$
Plan Fiduciary Net Position
Contribution - employer 870,427$ 1,486,916$ 1,569,307$ 1,050,000$
Net investment income 504,213 838,766 645,729 906,000
Benefit payments (505,591) (457,550) (463,831) (399,000)
Administrative expense (32,328) (29,410) (26,857) (23,000)
Net change in plan fiduciary net position 836,721 1,838,722 1,724,348 1,534,000
Plan fiduciary net position - beginning 13,413,070 11,574,348 9,850,000 8,316,000
Plan fiduciary net position - ending (b) 14,249,791 13,413,070 11,574,348 9,850,000$
Net OPEB liability (asset) - ending (a)-(b) (729,118)$ (551,436)$ (648,042)$ 591,000$
Fiduciary net position as a % of
total OPEB liability 105.40% 104.30% 105.90% 94.34%
Covered payroll 12,297,066 10,461,266 11,551,135 11,551,135
Net OPEB liability as a
percentage of payroll -5.93% -5.27% -5.61% 5.12%
* 2018 is the first year of implementation, therefore only four 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, 2021
Required Supplementary Information (Unaudited) (Continued)
Last Ten Fiscal Years
87 205
For the Measurement
Period:2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contributions 373,000$ 314,000$ 324,000$ 818,000$ 818,000$
Contributions in relation to
the actuarially determined
contribution (982,447) (870,427) (1,486,916) (1,569,000) (1,050,000)
Contribution deficiency
(excess) (609,447)$ (556,427)$ (1,162,916)$ (751,000)$ (232,000)$
Covered payroll 13,037,862$ 12,297,066$ 10,461,266$ 11,551,135$ 10,955,041$
Contributions as a percentage
of covered payroll 7.54% 7.08% 14.21% 13.58% 9.58%
* 2018 is the first year of implementation, therefore only five 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, 2021
Last Ten Fiscal Years
88 206
SUPPLEMENTARY INFORMATION
89 207
This page intentionally left blank.
90 208
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.
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.
91 209
NON MAJOR
GOVERNMENTAL FUNDS (Continued)
Special Revenue Funds (Continued):
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 grants.
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
project area.
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.
Grants Special Revenue Fund – This fund is used to support eligible service agencies.
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.
Measure “W” Special Revenue Fund - This fund is used to account for projects dedicated to increase local water supply,
improve water quality, and protect public health.
Sewer Special Revenue Fund - This fund is used to account for funds derived from sewer service charge levied on all Hermosa
Beach properties and other miscellaneous service charges.
Storm Drain Special Revenue Fund - This fund is used to account for a portion of the 6% utility user tax and 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.
Capital Project Funds:
Capital Improvement - This fund is set aside for capital improvement projects.
Greenwich Underground - This fund is set aside for capital improvement projects.
92
210
Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space Tyco
Cash and investments 188,424$ 804,130$ 168,502$ -$ 1,743,292$
Accounts receivable 13,725 138,014 8,822 6,140 -
Property taxes receivable, net 9,662 - - - -
Reimbursable grants receivable - - - - -
Interest receivable 135 585 121 - 1,282
Other assets - 1,933 - - -
Total assets 211,946$ 944,662$ 177,445$ 6,140$ 1,744,574$
Liabilities:
Accounts payable and accrued liabilities 33,144$ 670$ -$ -$ -$
Accrued wages and benefits payable 7,034 - 498 - -
Unearned revenues - - - - -
Due to other funds - - - 12,337 -
Compensated absences, due within one year - - - - -
Total liabilities 40,178 670 498 12,337 -
Deferred inflows of resources:
Unavailable revenue 9,662 - - - -
Total deferred inflows of resources 9,662 - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 162,106 943,992 176,947 - -
Committed - - - - 1,744,574
Assigned - - - - -
Unassigned - - - (6,197) -
Total fund balances 162,106 943,992 176,947 (6,197) 1,744,574
Total liabilities, deferred inflows
and fund balances 211,946$ 944,662$ 177,445$ 6,140$ 1,744,574$
ASSETS
AND FUND BALANCES
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
Special Revenue Funds
CITY OF HERMOSA BEACH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
93 211
Parks/ Bayview Myrtle Loma
Recreation Drive District District
Tyco Facilities Administrative Administrative Administrative
Tidelands Tax Expense Expense Expense
Cash and investments 18$ 445,237$ 4,741$ -$ -$
Accounts receivable - 2,000 - - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable - 320 3 - -
Other assets - - - - -
Total assets 18$ 447,557$ 4,744$ -$ -$
Liabilities:
Accounts payable and accrued liabilities -$ 1,659$ 371$ -$ -$
Accrued wages and benefits payable - - - - -
Unearned revenues - - - - -
Due to other funds - - - 111 93
Compensated absences, due within one year - - - - -
Total liabilities - 1,659 371 111 93
Deferred inflows of resources:
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:
Nonspendable - - - - -
Restricted 18 445,898 4,373 - -
Committed - - - - -
Assigned - - - - -
Unassigned - - - (111) (93)
Total fund balances 18 445,898 4,373 (111) (93)
Total liabilities, deferred inflows
and fund balances 18$ 447,557$ 4,744$ -$ -$
Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
94 212
Beach Drive Air Supplemental
Assessment Quality Law
District Proposition Measure Management Enforcement
Admin Expense "C""R"District Services
Cash and investments 3,806$ 1,399,784$ 535,502$ 65,151$ 338,240$
Accounts receivable - - 10,000 19,489 -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable 3 1,025 335 48 245
Other assets - - - - 9,280
Total assets 3,809$ 1,400,809$ 545,837$ 84,688$ 347,765$
Liabilities:
Accounts payable and accrued liabilities 348$ 7,368$ 17,716$ -$ 2,559$
Accrued wages and benefits payable - 1 - 54 -
Unearned revenues - - - - -
Due to other funds - - - - -
Compensated absences, due within one year - - 188 - -
Total liabilities 348 7,369 17,904 54 2,559
Deferred inflows of resources:
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:
Nonspendable - - - - 11,590
Restricted 3,461 1,393,440 527,933 84,634 333,616
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 3,461 1,393,440 527,933 84,634 345,206
Total liabilities, deferred inflows
and fund balances 3,809$ 1,400,809$ 545,837$ 84,688$ 347,765$
CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
95 213
Asset
Seizure RTI
and Fire Measure Undersea
Forfeiture Protection CDBG "M"Cable
Cash and investments 637,055$ 26,756$ 1$ 358,930$ 847,520$
Accounts receivable - - 3,191 - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable 462 19 - 265 618
Other assets - 3,589 - - -
Total assets 637,517$ 30,364$ 3,192$ 359,195$ 848,138$
Liabilities:
Accounts payable and accrued liabilities 704$ 3,589$ -$ -$ -$
Accrued wages and benefits payable - - - - -
Unearned revenues - - - - -
Due to other funds - - - - -
Compensated absences, due within one year - - - - -
Total liabilities 704 3,589 - - -
Deferred inflows of resources:
Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:
Nonspendable - 3,589 - - -
Restricted 636,813 23,186 3,192 359,195 -
Committed - - - - 848,138
Assigned - - - - -
Unassigned - - - - -
Total fund balances 636,813 26,775 3,192 359,195 848,138
Total liabilities, deferred inflows
and fund balances 637,517$ 30,364$ 3,192$ 359,195$ 848,138$
CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
AND FUND BALANCES
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
ASSETS
96 214
RTI
Undersea
Cable Proposition CARES Measure
Tidelands "A" Transit Grants Act "W"
Cash and investments 449,344$ 782,646$ -$ 274,759$ 19,605$
Accounts receivable - - 207,982 - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - 348,257 15,174 -
Interest receivable 327 560 - - 14
Other assets - - - 2,987 -
Total assets 449,671$ 783,206$ 556,239$ 292,920$ 19,619$
Liabilities:
Accounts payable and accrued liabilities -$ 38,449$ 104,591$ -$ -$
Accrued wages and benefits payable - 227 - - -
Unearned revenues - - - - -
Due to other funds - - 220,534 - -
Compensated absences, due within one yea - - 47 - -
Total liabilities - 38,676 325,172 - -
Deferred inflows of resources:
Unavailable revenue - - 197,012 - -
Total deferred inflows of resources - - 197,012 - -
Fund Balances:
Nonspendable - - - - -
Restricted 449,671 744,530 34,055 292,920 19,619
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 449,671 744,530 34,055 292,920 19,619
Total liabilities, deferred inflows
and fund balances 449,671$ 783,206$ 556,239$ 292,920$ 19,619$
AND FUND BALANCES
ASSETS
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
Special Revenue Funds
CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
97 215
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
Cash and investments 3,079,719$ 2,181,766$ 120,898$ 95,223$ 14,571,049$
Accounts receivable 72,936 1 - - 482,300
Property taxes receivable, net 17,922 - - - 27,584
Reimbursable grants receivable - - - - 363,431
Interest receivable 2,183 - - - 8,550
Other assets 728 - - - 18,517
Total assets 3,173,488$ 2,181,767$ 120,898$ 95,223$ 15,471,431$
Liabilities:
Accounts payable and accrued liabilities 11,203$ 79,402$ -$ -$ 301,773$
Accrued wages and benefits payable 28,239 6,342 - - 42,395
Unearned revenues - - - - -
Due to other funds - - - - 233,075
Compensated absences, due within one yea - - - - 235
Total liabilities 39,442 85,744 - - 577,478
Deferred inflows of resources:
Unavailable revenue - - - - 206,674
Total deferred inflows of resources - - - - 206,674
Fund Balances:
Nonspendable - - - - 15,179
Restricted 3,134,046 - 120,898 95,223 9,989,766
Committed - - - - 2,592,712
Assigned - 2,096,023 - - 2,096,023
Unassigned - - - - (6,401)
Total fund balances 3,134,046 2,096,023 120,898 95,223 14,687,279
Total liabilities, deferred inflows
and fund balances 3,173,488$ 2,181,767$ 120,898$ 95,223$ 15,471,431$
Special Revenue Funds
ASSETS
LIABILITIES, DEFERRED
INFLOWS OF RESOURCES,
AND FUND BALANCES
CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
98 216
Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space Tyco
REVENUES:
Property taxes 461,090$ -$ -$ -$ -$
Other taxes - - - - -
Fines and forfeitures - - - - -
Use of money and property - - - - 337,932
Intergovernmental - 794,434 - - -
Charges for services - - 60,584 - -
Miscellaneous - - - - -
Interest earned on investments (699) (394) (615) - 1,481
Total revenues 460,391 794,040 59,969 - 339,413
EXPENDITURES:
Current:
General government - - 1,830 - -
Public safety - - - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works 594,083 - - - -
Capital outlay - 4,070 - - -
Debt service:
Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 594,083 4,070 1,830 - -
REVENUES OVER
(UNDER) EXPENDITURES (133,692) 789,970 58,139 - 339,413
OTHER FINANCING
SOURCES (USES):
Transfers in 291,002 - - - -
Transfers out (11,054) (360,763) - (20,557) -
Total other financing
sources (uses)279,948 (360,763) - (20,557) -
CHANGE IN FUND BALANCES 146,256 429,207 58,139 (20,557) 339,413
Fund balances, beginning of year,
as restated 15,850 514,785 118,808 14,360 1,405,161
Fund balances (deficits), end of year 162,106$ 943,992$ 176,947$ (6,197)$ 1,744,574$
CITY OF HERMOSA BEACH
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances
Special Revenue Funds
99 217
Parks/ Bayview Myrtle Loma
Recreation Drive District District
Tyco Facilities Administrative Administrative Administrative
Tidelands Tax Expense Expense Expense
REVENUES:
Property taxes -$ -$ -$ -$ -$
Other taxes - 7,902 - - -
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - - -
Charges for services - 106,808 - - -
Miscellaneous - - 4,500 - -
Interest earned on investments - 513 17 - -
Total revenues - 115,223 4,517 - -
EXPENDITURES:
Current:
General government - - 1,725 - 59
Public safety - - - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay - 25,250 - - -
Debt service:
Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures - 25,250 1,725 - 59
REVENUES OVER
(UNDER) EXPENDITURES - 89,973 2,792 - (59)
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - (2,307) - (34)
Total other financing
sources (uses)- - (2,307) - (34)
CHANGE IN FUND BALANCES - 89,973 485 - (93)
Fund balances, beginning of year,
as restated 18 355,925 3,888 (111) -
Fund balances (deficits), end of year 18$ 445,898$ 4,373$ (111)$ (93)$
Special Revenue Funds
CITY OF HERMOSA BEACH
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
100 218
Beach Drive Air Supplemental
Assessment Quality Law
District Proposition Measure Management Enforcement
Admin Expense "C""R"District Services
REVENUES:
Property taxes -$ -$ -$ -$ -$
Other taxes - 331,225 248,763 - 127,250
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - 25,612 -
Charges for services - - - - -
Miscellaneous 3,500 - - - -
Interest earned on investments 8 1,199 145 166 908
Total revenues 3,508 332,424 248,908 25,778 128,158
EXPENDITURES:
Current:
General government 1,412 - - 17,421 -
Public safety - - - - 88,804
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay - - - - 33,475
Debt service:
Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 1,412 - - 17,421 122,279
REVENUES OVER
(UNDER) EXPENDITURES 2,096 332,424 248,908 8,357 5,879
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out (1,891) - - - -
Total other financing
sources (uses)(1,891) - - - -
CHANGE IN FUND BALANCES 205 332,424 248,908 8,357 5,879
Fund balances, beginning of year,
as restated 3,256 1,061,016 279,025 76,277 339,327
Fund balances (deficits), end of year 3,461$ 1,393,440$ 527,933$ 84,634$ 345,206$
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, 2021
101 219
Asset
Seizure RTI
and Fire Measure Undersea
Forfeiture Protection CDBG "M"Cable
REVENUES:
Property taxes -$ -$ -$ -$ -$
Other taxes - - - 281,857 -
Fines and forfeitures 3,774 - - - -
Use of money and property - - - - 376,500
Intergovernmental - - - - -
Charges for services - 41,018 - - -
Miscellaneous - - - - -
Interest earned on investments 1,361 (69) - (796) 821
Total revenues 5,135 40,949 - 281,061 377,321
EXPENDITURES:
Current:
General government - - - - -
Public safety 5,028 43,062 - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay 374 - 1,479 - -
Debt service:
Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 5,402 43,062 1,479 - -
REVENUES OVER
(UNDER) EXPENDITURES (267) (2,113) (1,479) 281,061 377,321
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses)- - - - -
CHANGE IN FUND BALANCES (267) (2,113) (1,479) 281,061 377,321
Fund balances, beginning of year,
as restated 637,080 28,888 4,671 78,134 470,817
Fund balances (deficits), end of year 636,813$ 26,775$ 3,192$ 359,195$ 848,138$
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
CITY OF HERMOSA BEACH
102 220
RTI
Undersea
Cable Proposition CARES Measure
Tidelands "A" Transit Grants Act "W"
REVENUES:
Property taxes -$ -$ -$ -$ -$
Other taxes - 399,324 - - 157,164
Fines and forfeitures - - - - -
Use of money and property 192,000 - - - -
Intergovernmental - - 91,773 292,920 -
Charges for services - 941 - - -
Miscellaneous - - 18,973 - -
Interest earned on investments 637 93 - - (45)
Total revenues 192,637 400,358 110,746 292,920 157,119
EXPENDITURES:
Current:
General government - 24 69,430 - -
Public safety - 17,317 9,595 - -
Community development - 33,645 82,041 - -
Culture and recreaction - 12,200 - - -
Public works - - 34,484 - -
Capital outlay - - 109,861 - 137,500
Debt service:
Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures - 63,186 305,411 - 137,500
REVENUES OVER
(UNDER) EXPENDITURES 192,637 337,172 (194,665) 292,920 19,619
OTHER FINANCING
SOURCES (USES):
Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses)- - - - -
CHANGE IN FUND BALANCE 192,637 337,172 (194,665) 292,920 19,619
Fund balances, beginning of year,
as restated 257,034 407,358 228,720 - -
Fund balances (deficits), end of year 449,671$ 744,530$ 34,055$ 292,920$ 19,619$
CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
103 221
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
REVENUES:
Property taxes -$ -$ -$ -$ 461,090$
Other taxes - 700,000 - - 2,253,485
Fines and forfeitures - - - - 3,774
Use of money and property - - 120,898 - 1,027,330
Intergovernmental 17,469 - - - 1,222,208
Charges for services 1,281,614 - - - 1,490,965
Miscellaneous - - - - 26,973
Interest earned on investments 16,828 10,104 - - 31,663
Total revenues 1,315,911 710,104 120,898 - 6,517,488
EXPENDITURES:
Current:
General government - - - - 91,901
Public safety - - - - 163,806
Community development - - - - 115,686
Culture and recreaction - - - - 12,200
Public works 380,090 294,897 - - 1,303,554
Capital outlay 129,359 52,442 - - 493,810
Debt service:
Interest and fiscal charges - - - 491,542 491,542
Cost of issuance - - - 229,987 229,987
Total expenditures 509,449 347,339 - 721,529 2,902,486
REVENUES OVER
(UNDER) EXPENDITURES 806,462 362,765 120,898 (721,529) 3,615,002
OTHER FINANCING
SOURCES (USES):
Transfers in - - - 816,634 1,107,636
Transfers out (3,000,000) - - - (3,396,606)
Total other financing
sources (uses)(3,000,000) - - 816,634 (2,288,970)
CHANGE IN FUND BALANCES (2,193,538) 362,765 120,898 95,105 1,326,032
Fund balances, beginning of year,
as restated 5,327,584 1,733,258 - 118 13,361,247
Fund balances (deficits), end of year 3,134,046$ 2,096,023$ 120,898$ 95,223$ 14,687,279$
CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued)
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
104 222
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 15,850$ 15,850$ -$
Revenues (inflows):
Property taxes 454,100 461,090 6,990
Interest earned on investments 123 (699) (822)
Transfers in 291,002 291,002 -
Amount available for appropriations 745,225 751,393 6,168
Charges to appropriations (outflows):
Public works 737,748 594,083 143,665
Transfers out 11,054 11,054 -
Total charges to appropriations 748,802 605,137 143,665
Fund balance, June 30, 2021 12,273$ 162,106$ (137,497)$
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, 2021
105 223
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 514,785$ 514,785$ -$
Revenues (inflows):
Intergovernmental 815,562 794,434 (21,128)
Interest earned on investments 5,271 (394) (5,665)
Amount available for appropriations 820,833 794,040 (26,793)
Charges to appropriations (outflows):
Capital outlay 942,627 4,070 938,557
Transfers out 360,763 360,763 -
Total charges to appropriations 1,303,390 364,833 938,557
Fund balance, June 30, 2021 32,228$ 943,992$ (965,350)$
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, 2021
106 224
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 118,808$ 118,808$ -$
Revenues (inflows):
Charges for services 61,528 60,584 (944)
Interest earned on investments 1,398 (615) (2,013)
Amount available for appropriations 62,926 59,969 (2,957)
Charges to appropriations (outflows):
General government 19,599 1,830 17,769
Total charges to appropriations 19,599 1,830 17,769
Fund balance, June 30, 2021 162,135$ 176,947$ (20,726)$
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, 2021
107 225
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 14,360$ 14,360$ -$
Revenues (inflows):
Intergovernmental 51,160 - (51,160)
Amount available for appropriations 51,160 - (51,160)
Charges to appropriations (outflows):
Transfers out 20,557 20,557 -
Total charges to appropriations 20,557 20,557 -
Fund balance (deficit), June 30, 2021 44,963$ (6,197)$ (51,160)$
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, 2021
108 226
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 1,405,161$ 1,405,161$ -$
Revenues (inflows):
Use of money and property 348,070 337,932 (10,138)
Interest earned on investments 15,509 1,481 (14,028)
Amount available for appropriations 363,579 339,413 (24,166)
Charges to appropriations (outflows):
Capital outlay 1,261,856 - 1,261,856
Total charges to appropriations 1,261,856 - 1,261,856
Fund balance, June 30, 2021 506,884$ 1,744,574$ (1,286,022)$
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, 2021
109 227
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 355,925$ 355,925$ -$
Revenues (inflows):
Other taxes - 7,902 7,902
Charges for services 78,616 106,808 28,192
Interest earned on investments 4,074 513 (3,561)
Amount available for appropriations 82,690 115,223 32,533
Charges to appropriations (outflows):
Capital outlay 337,031 25,250 311,781
Total charges to appropriations 337,031 25,250 311,781
Fund balance, June 30, 2021 101,584$ 445,898$ (279,248)$
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, 2021
110 228
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 3,888$ 3,888$ -$
Revenues (inflows):
Miscellaneous 4,500 4,500 -
Interest earned on investments 52 17 (35)
Amount available for appropriations 4,552 4,517 (35)
Charges to appropriations (outflows):
General government 1,400 1,725 (325)
Transfers out 2,307 2,307 -
Total charges to appropriations 3,707 4,032 (325)
Fund balance, June 30, 2021 4,733$ 4,373$ 290$
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, 2021
111 229
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 -$ -$ -$
Revenues (inflows):
Interest earned on investments 3 - (3)
Amount available for appropriations 3 - (3)
Charges to appropriations (outflows):
General government - 59 (59)
Transfers out 34 34 -
Total charges to appropriations 34 93 (59)
Fund balance (deficit), June 30, 2021 (31)$ (93)$ 56$
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, 2021
112 230
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 3,256$ 3,256$ -$
Revenues (inflows):
Miscellaneous 3,500 3,500 -
Interest earned on investments 44 8 (36)
Amount available for appropriations 3,544 3,508 (36)
Charges to appropriations (outflows):
General government 1,550 1,412 138
Transfers out 1,891 1,891 -
Total charges to appropriations 3,441 3,303 138
Fund balance, June 30, 2021 3,359$ 3,461$ (174)$
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, 2021
113 231
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 1,061,016$ 1,061,016$ -$
Revenues (inflows):
Other taxes 304,404 331,225 26,821
Interest earned on investments 12,282 1,199 (11,083)
Amount available for appropriations 316,686 332,424 15,738
Charges to appropriations (outflows):
Capital outlay 1,260,000 - 1,260,000
Total charges to appropriations 1,260,000 - 1,260,000
Fund balance, June 30, 2021 117,702$ 1,393,440$ (1,244,262)$
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, 2021
114 232
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 279,025$ 279,025$ -$
Revenues (inflows):
Other taxes 230,352 248,763 18,411
Miscellaneous 243,000 - (243,000)
Interest earned on investments 4,041 145 (3,896)
Amount available for appropriations 477,393 248,908 (228,485)
Charges to appropriations (outflows):
Capital outlay 756,139 - 756,139
Total charges to appropriations 756,139 - 756,139
Fund balance, June 30, 2021 279$ 527,933$ (984,624)$
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, 2021
115 233
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 76,277$ 76,277$ -$
Revenues (inflows):
Intergovernmental 25,000 25,612 612
Interest earned on investments 625 166 (459)
Amount available for appropriations 25,625 25,778 153
Charges to appropriations (outflows):
General government 48,000 17,421 30,579
Total charges to appropriations 48,000 17,421 30,579
Fund balance, June 30, 2021 53,902$ 84,634$ (30,426)$
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, 2021
116 234
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 339,327$ 339,327$ -$
Revenues (inflows):
Other taxes 102,246 127,250 25,004
Interest earned on investments 3,912 908 (3,004)
Amount available for appropriations 106,158 128,158 22,000
Charges to appropriations (outflows):
Public safety 107,611 88,804 18,807
Capital outlay 33,993 33,475 518
Total charges to appropriations 141,604 122,279 19,325
Fund balance, June 30, 2021 303,881$ 345,206$ 2,675$
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, 2021
117 235
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 637,080$ 637,080$ -$
Revenues (inflows):
Fines and forfeitures 3,774 3,774 -
Interest earned on investments 6,932 1,361 (5,571)
Amount available for appropriations 10,706 5,135 (5,571)
Charges to appropriations (outflows):
Public safety 63,393 5,028 58,365
Capital outlay 1,041 374 667
Total charges to appropriations 64,434 5,402 59,032
Fund balance, June 30, 2021 583,352$ 636,813$ (64,603)$
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, 2021
118 236
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 28,888$ 28,888$ -$
Revenues (inflows):
Charges for services 35,000 41,018 6,018
Interest earned on investments 262 (69) (331)
Amount available for appropriations 35,262 40,949 5,687
Charges to appropriations (outflows):
Public safety 43,062 43,062 -
Total charges to appropriations 43,062 43,062 -
Fund balance, June 30, 2021 21,088$ 26,775$ 5,687$
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, 2021
119 237
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 4,671$ 4,671$ -$
Revenues (inflows):
Intergovernmental 130,337 - (130,337)
Amount available for appropriations 130,337 - (130,337)
Charges to appropriations (outflows):
Capital outlay 135,008 1,479 133,529
Total charges to appropriations 135,008 1,479 133,529
Fund balance, June 30, 2021 -$ 3,192$ (263,866)$
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, 2021
120 238
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 78,134$ 78,134$ -$
Revenues (inflows):
Other taxes 261,747 281,857 20,110
Interest earned on investments 1,730 (796) (2,526)
Amount available for appropriations 263,477 281,061 17,584
Charges to appropriations (outflows):
Capital outlay 339,572 - 339,572
Total charges to appropriations 339,572 - 339,572
Fund balance, June 30, 2021 2,039$ 359,195$ (321,988)$
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, 2021
121 239
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 470,817$ 470,817$ -$
Revenues (inflows):
Use of money and property 361,000 376,500 15,500
Interest earned on investments 6,470 821 (5,649)
Amount available for appropriations 367,470 377,321 9,851
Charges to appropriations (outflows):
Capital outlay 828,952 - 828,952
Total charges to appropriations 828,952 - 828,952
Fund balance, June 30, 2021 9,335$ 848,138$ (819,101)$
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, 2021
122 240
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 257,034$ 257,034$ -$
Revenues (inflows):
Use of money and property 184,000 192,000 8,000
Interest earned on investments 3,597 637 (2,960)
Amount available for appropriations 187,597 192,637 5,040
Charges to appropriations (outflows):
Capital outlay 440,000 - 440,000
Total charges to appropriations 440,000 - 440,000
Fund balance, June 30, 2021 4,631$ 449,671$ (434,960)$
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, 2021
123 241
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 407,358$ 407,358$ -$
Revenues (inflows):
Other taxes 366,972 399,324 32,352
Charges for services 728 941 213
Interest earned on investments 5,458 93 (5,365)
Amount available for appropriations 373,158 400,358 27,200
Charges to appropriations (outflows):
General government 1,700 24 1,676
Public safety 65,000 17,317 47,683
Community development 40,596 33,645 6,951
Culture and recreation 91,000 12,200 78,800
Capital outlay - - -
Total charges to appropriations 198,296 63,186 135,110
Fund balance, June 30, 2021 582,220$ 744,530$ (107,910)$
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, 2021
124 242
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020, as restated 228,720$ 228,720$ -$
Revenues (inflows):
Intergovernmental 903,836 91,773 (812,063)
Miscellaneous 303,706 18,973 (284,733)
Amount available for appropriations 1,207,542 110,746 (1,096,796)
Charges to appropriations (outflows):
General government 254,550 69,430 185,120
Public safety 14,870 9,595 5,275
Community development 101,656 82,041 19,615
Public works 160,000 34,484 125,516
Capital outlay 817,956 109,861 708,095
Total charges to appropriations 1,349,032 305,411 1,043,621
Fund balance (deficit), June 30, 2021 87,230$ 34,055$ (2,140,417)$
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule - Grants Special Revenue Fund
For the Year Ended June 30, 2021
125 243
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 -$ -$ -$
Revenues (inflows):
Other taxes 160,000 157,164 (2,836)
Interest earned on investments 19 (45) (64)
Amount available for appropriations 160,019 157,119 (2,900)
Charges to appropriations (outflows):
Capital outlay 140,000 137,500 2,500
Total charges to appropriations 140,000 137,500 2,500
Fund balance, June 30, 2021 20,019$ 19,619$ (5,400)$
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule - Measure "W" Special Revenue Fund
For the Year Ended June 30, 2021
126 244
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 5,327,584$ 5,327,584$ -$
Revenues (inflows):
Intergovernmental 13,475 17,469 3,994
Charges for services 1,102,945 1,281,614 178,669
Interest earned on investments 56,649 16,828 (39,821)
Amount available for appropriations 1,173,069 1,315,911 142,842
Charges to appropriations (outflows):
Public works 491,362 380,090 111,272
Capital outlay 2,472,822 129,359 2,343,463
Transfers out 3,000,000 3,000,000 -
Total charges to appropriations 5,964,184 3,509,449 2,454,735
Fund balance, June 30, 2021 536,469$ 3,134,046$ (2,311,893)$
CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued)
Budgetary Comparison Schedule - Sewer Special Revenue Fund
For the Year Ended June 30, 2021
127 245
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 1,733,258$ 1,733,258$ -$
Revenues (inflows):
Other taxes - 700,000 700,000
Interest earned on investments 20,058 10,104 (9,954)
Transfers in 700,000 - (700,000)
Amount available for appropriations 720,058 710,104 (9,954)
Charges to appropriations (outflows):
Public works 437,260 294,897 142,363
Capital outlay 1,975,287 52,442 1,922,845
Total charges to appropriations 2,412,547 347,339 2,065,208
Fund balance, June 30, 2021 40,769$ 2,096,023$ (2,075,162)$
CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Budgetary Comparison Schedule - Storm Drain Special Revenue Fund
For the Year Ended June 30, 2021
128 246
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 118$ 118$ -$
Revenues (inflows):
Transfers in 785,699 816,634 30,935
Amount available for appropriations 785,699 816,634 30,935
Charges to appropriations (outflows):
Principal 500,000 - 500,000
Interest and fiscal charges 285,712 491,542 (205,830)
Cost of issuance - 229,987 (229,987)
Total charges to appropriations 785,712 721,529 64,183
Fund balance, June 30, 2021 105$ 95,223$ (33,248)$
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, 2021
129 247
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 9,269,543$ 9,269,543$ -$
Revenues (inflows):
Miscellaneous - 1,350 1,350
Interest earned on investments 109,598 25,494 (84,104)
Transfers in - - -
Amount available for appropriations 109,598 26,844 (82,754)
Charges to appropriations (outflows):
General government 219,000 53,167 165,833
Public safety - 379,716 (379,716)
Capital outlay 5,861,650 313,175 5,548,475
Total charges to appropriations 6,080,650 746,058 5,334,592
Fund balance, June 30, 2021 3,298,491$ 8,550,329$ (5,417,346)$
CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual
Budgetary Comparison Schedule - Capital Improvements Capital Project Fund
For the Year Ended June 30, 2021
130 248
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131 249
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.
132 250
Equipment
Insurance Replacement
Fund Fund Total
ASSETS
Current assets:
Cash and investments 7,550,433$ 5,322,177$ 12,872,610$
Account receivables 65 1 66
Other assets - 1,800 1,800
Total current assets 7,550,498 5,323,978 12,874,476
Noncurrent assets:
Nondepreciable capital assets - 365,074 365,074
Depreciable capital assets, net of accumulated depreciation - 3,176,233 3,176,233
Total noncurrent assets - 3,541,307 3,541,307
Total assets 7,550,498 8,865,285 16,415,783
LIABILITIES
Current liabilities:
Accounts payable 68,411 59,677 128,088
Accrued wages and benefits payable 5,541 12,047 17,588
Workers' compensation claims payable - due within one year 876,000 - 876,000
General liability claims payable - due within one year 414,000 - 414,000
Compensated absences - due within one year 4,530 - 4,530
Total current liabilities 1,368,482 71,724 1,440,206
Long-term liabilities:
Workers' compensation claims payable - due in more than one year 4,127,237 - 4,127,237
General liability claims payable - due in more than one year 951,669 - 951,669
Total long-term liabilities 5,078,906 - 5,078,906
Total liabilities 6,447,388 71,724 6,519,112
NET POSITION
Net investment in capital assets - 3,541,307 3,541,307
Unrestricted 1,103,110 5,252,254 6,355,364
Total net position 1,103,110$ 8,793,561$ 9,896,671$
CITY OF HERMOSA BEACH
Combining Statement of Net Position
All Internal Service Funds
June 30, 2021
133 251
Equipment
Insurance Replacement
Fund Fund Total
OPERATING REVENUES:
Charges for services 2,750,236$ 1,956,104$ 4,706,340$
Miscellaneous revenue 30,007 3,750 33,757
Total operating revenues 2,780,243 1,959,854 4,740,097
OPERATING EXPENSES:
Salaries and wages 126,852 241,555 368,407
Contract services 1,477,969 720,025 2,197,994
Supplies - 311,057 311,057
Claims expense 2,716,103 - 2,716,103
Depreciation - 639,550 639,550
Total operating expenses 4,320,924 1,912,187 6,233,111
OPERATING INCOME (1,540,681) 47,667 (1,493,014)
NON-OPERATING REVENUES (EXPENSES):
Gain on disposal of capital assets - 868 868
Total non-operating revenues (expenses)- 868 868
Change in net position (1,540,681) 48,535 (1,492,146)
Net position, beginning of year 2,643,791 8,745,026 11,388,817
Net position, end of year 1,103,110$ 8,793,561$ 9,896,671$
CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenses, and Changes in Net Position
All Internal Service Funds
For the year ended June 30, 2021
134 252
Equipment
Insurance Replacement
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received for services from other funds 2,750,236$ 1,956,104$ 4,706,340$
Cash received from insurance recovery 30,007 - 30,007
Cash payments to suppliers for goods and services (1,556,962) (1,159,865) (2,716,827)
Cash payments to employees for services (119,920) (222,136) (342,056)
Cash payments for insurance premiums and claims (2,257,858) - (2,257,858)
Net cash provided (used by) operating activities (1,154,497) 574,103 (580,394)
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:
Acquisition of capital assets - (703,304) (703,304)
Proceeds from sale of capital assets - 1,322 1,322
Net cash provided (used by) capital and related financing activities - (701,982) (701,982)
Net increase (decrease) in cash and cash equivalents (1,154,497) (127,879) (1,282,376)
Cash and equivalents, beginning of year 8,704,930 5,450,056 14,154,986
Cash and equivalents, end of year 7,550,433$ 5,322,177$ 12,872,610$
RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:
Operating income (loss) (1,540,681)$ 47,667$ (1,493,014)$
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation - 639,550 639,550
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (65) 4,111 4,046
Increase (decrease) in accounts payable (78,993) (98,076) (177,069)
Increase (decrease) in accrued wages and benefits payable (2,402) (2,675) (5,077)
Increase (decrease) in workers' compensation claims payable 325,905 - 325,905
Increase (decrease) in general liability claims payable 146,269 - 146,269
Increase (decrease) in compensated absences (4,530) (16,474) (21,004)
Total adjustments 386,184 526,436 912,620
Net cash provided (used) by operating activities (1,154,497)$ 574,103$ (580,394)$
CITY OF HERMOSA BEACH
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2021
135 253
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.
136 254
Lower Pier
Avenue Beach Drive
Assessment Assessment
Bayview Drive Bayview Drive District District
Redemption Reserve Redemption Redemption
Cash and investments 121,011$ 15,284 3,261 54,845
Interest receivable 88 11 2 40
Other accounts receivable 685 - - 967
Total assets 121,784$ 15,295 3,263 55,852
Installment account 121,784$ 5,295 3,263 55,852
Reserve requirement - 10,000 - -
Total liabilities 121,784$ 15,295 3,263 55,852
ASSETS
LIABILITIES
June 30, 2021
CITY OF HERMOSA BEACH
Combining Statement of Fiduciary Net Position
All Custodial Funds
137 255
Myrtle Avenue Loma Drive
Beach Drive Utility Utility
Assessment Undergrounding Undergrounding
District Assessment Assessment
Reserve District District Total
Cash and investments 4,688$ 50,758 90,230 340,077
Interest receivable 3 - - 144
Other accounts receivable - 162 - 1,814
Total assets 4,691$ 50,920 90,230 342,035
Installment account 1,691$ 50,920 90,230 329,035
Reserve requirement 3,000 - - 13,000
Total liabilities 4,691$ 50,920 90,230 342,035
ASSETS
LIABILITIES
June 30, 2021
CITY OF HERMOSA BEACH
Combining Statement of Fiduciary Net Position (Continued)
All Custodial Funds
138 256
STATISTICAL SECTION
139 257
STATISTICAL SECTION
This part of the City of Hermosa Beach's annual comprehensive 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 141-146
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 147-153
These schedules contain information to help the reader assess the government's most
significant local revenue source, the property tax.
Debt Capacity 154-165
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 166-168
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 169-170
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.
140 258
2012 2013 2014 2015 2016
Governmental activities:
Net investment in capital assets 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ 66,933,796$
Restricted 3,860,192 4,050,722 4,476,554 4,188,404 3,774,552
Unrestricted 10,589,507 17,294,405 22,988,231 (24,869,037) (18,769,530)
Total governmental activities net assets 79,968,435$ 85,480,868$ 92,292,790$ 46,052,668$ 51,938,818$
Business-type activities:
Net investment in capital assets -$ -$ -$ -$ -$
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net assets -$ -$ -$ -$ -$
Primary government:
Net investment in capital assets 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ 66,933,796$
Restricted 3,860,192 4,050,722 4,476,554 4,188,404 3,774,552
Unrestricted 10,589,507 17,294,405 22,988,231 (24,869,037) (18,769,530)
Total primary government net assets 79,968,435$ 85,480,868$ 92,292,790$ 46,052,668$ 51,938,818$
1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012.
Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)
CITY OF HERMOSA BEACH
Net Assets by Component
141 259
2017 2018 2019 2020 2021
Governmental activities:
Net investment in capital assets 66,417,072$ 66,333,070$ 64,375,911$ 66,556,499$ 65,145,247$
Restricted 5,260,908 5,584,794 5,056,977 6,399,646 8,376,641
Unrestricted (13,287,058) (10,942,703) (8,841,583) (12,400,420) (13,440,076)
Total governmental activities net assets 58,390,922$ 60,975,161$ 60,591,305$ 60,555,725$ 60,081,812$
Business-type activities:
Net investment in capital assets -$ -$ -$ -$ -$
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net assets -$ -$ -$ -$ -$
Primary government:
Net investment in capital assets 66,417,072$ 66,333,070$ 64,375,911$ 66,556,499$ 65,145,247$
Restricted 5,260,908 5,584,794 5,056,977 6,399,646 8,376,641
Unrestricted (13,287,058) (10,942,703) (8,841,583) (12,400,420) (13,440,076)
Total primary government net assets 58,390,922$ 60,975,161$ 60,591,305$ 60,555,725$ 60,081,812$
1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012.
(accrual basis of accounting) (Continued)
Fiscal Year
CITY OF HERMOSA BEACH
Net Assets by Component
Last Ten Fiscal Years
142 260
2012 2013 2014 2015 2016
Expenses:
Governmental activities:
Legislative and legal 4,677,233$ 881,556$ 1,076,211$ 1,293,214$ 2,083,297$
General government 2,376,929 2,458,548 2,827,895 3,078,044 2,262,107
Public safety 18,179,929 16,431,962 16,856,166 16,737,044 20,034,932
Community development 1,235,058 1,260,996 1,519,632 1,710,563 1,347,087
Culture and recreation 1,037,790 1,087,000 1,068,388 1,257,311 1,108,749
Public works 7,239,076 7,529,499 7,420,724 6,985,762 9,131,490
Interest and fiscal charges - - - - -
Total governmental activities expenses 34,746,015 29,649,561 30,769,016 31,061,938 35,967,662
Business-type activities:
Downtown Enhancement 906,244 - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses 906,244 - - - -
Total primary government expenses 35,652,259 29,649,561 30,769,016 31,061,938 35,967,662
Program revenues:
Governmental activities:
Charges for services:
General government 555,607 2,275,297 2,323,797 2,582,857 2,414,955
Public safety 5,112,011 5,282,223 5,455,694 5,398,329 5,254,859
Community development 860,158 1,125,637 1,641,773 1,679,400 1,996,538
Culture and recreation 957,989 1,271,845 1,425,451 1,522,417 1,178,323
Public works 938,822 989,656 892,784 1,085,165 2,217,610
Operating grants and contributions 828,722 702,873 1,106,254 983,628 755,650
Capital grants and contributions 759,889 255,996 260,844 328,649 203,033
Total governmental activities
program revenues: 10,013,198 11,903,527 13,106,597 13,580,445 14,020,968
Business-type activities:
Charges for services:
Downtown Enhancement 1,649,197 - - - -
Parking - - - -
Proposition A Transit - - - -
Proposition C Transit - - - -
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues: 1,649,197 - - - -
Total primary government
program revenues: 11,662,395 11,903,527 13,106,597 13,580,445 14,020,968
Last Ten Fiscal Years
(accrual basis of accounting)
CITY OF HERMOSA BEACH
Changes in Net Assets
Fiscal Year
143 261
2012 2013 2014 2015 2016
Net revenues (expenses):
Governmental activities (24,732,817) (17,746,034) (17,662,419) (17,481,493) (21,946,694)
Business-type activities 742,953 - - - -
Total net revenues (expenses) (23,989,864) (17,746,034) (17,662,419) (17,481,493) (21,946,694)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 11,598,615 12,151,229 12,910,426 13,739,648 15,317,458
Sales tax 2,474,651 2,598,752 2,653,631 2,768,225 2,895,794
Other taxes 6,461,065 6,638,189 6,924,202 7,179,945 7,527,467
Grants and contributions not restricted to
specific programs 1,121,380 1,156,589 1,222,808 1,246,419 1,369,042
Investment income 109,571 130,709 141,794 510,668 455,234
Other general revenues 237,670 582,999 621,480 489,740 267,849
Transfers 9,913,975 - - - -
Settlement (Note 14) - - - (14,000,000) -
Total governmental activities 31,916,927 23,258,467 24,474,341 11,934,645 27,832,844
Business-type activities:
Investment income 6,418 - - - -
Other general revenues - - - -
Miscellaneous 4,684 - - - -
Transfers (9,913,975) - - - -
Total business-type activities (9,902,873) - - - -
Total primary government 22,014,054 23,258,467 24,474,341 11,934,645 27,832,844
Changes in net assets
Governmental activities: 7,184,110 5,512,433 6,811,922 (5,546,848) 5,886,150
Business-type activities: (9,159,920) - - - -
Total primary government (1,975,810)$ 5,512,433$ 6,811,922$ (5,546,848)$ 5,886,150$
1 Transit operations were transferred to special revenue funds in fiscal year 2005.
2 The Parking Fund was combined with the General Fund in fiscal year 2006.
(accrual basis of accounting) (Continued)
Fiscal Year
CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
144 262
2017 2018 2019 2020 2021
Expenses:
Governmental activities:
Legislative and legal 2,043,740$ 1,869,599$ 1,563,872$ 1,644,044$ 1,868,411$
General government 3,598,512 4,129,246 4,257,735 6,023,648 6,183,616
Public safety 18,911,734 25,496,398 21,257,544 25,546,098 26,942,447
Community development 1,787,364 2,264,015 2,054,759 3,215,102 2,725,596
Culture and recreation 1,310,740 1,769,893 1,565,784 1,867,143 1,571,300
Public works 7,957,044 9,176,521 12,847,372 7,515,310 7,272,166
Interest and fiscal charges - - 375,815 295,723 400,465
Total governmental activities expenses 35,609,134 44,705,672 43,922,881 46,107,068 46,964,001
Business-type activities:
Downtown Enhancement - - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses - - - - -
Total primary government expenses 35,609,134 44,705,672 43,922,881 46,107,068 46,964,001
Program revenues:
Governmental activities:
Charges for services:
General government 2,433,987 2,538,028 476,403 685,320 650,066
Public safety 4,993,104 4,957,188 3,137,319 4,857,617 4,602,983
Community development 1,664,132 1,691,752 1,735,699 1,532,538 1,494,412
Culture and recreation 1,341,455 1,223,789 974,306 546,379 849,247
Public works 2,374,774 2,292,254 3,426,223 1,426,203 1,578,604
Operating grants and contributions 601,816 517,244 3,505,669 3,419,173 2,640,033
Capital grants and contributions 327,534 27,821 526,421 833,644 45,817
Total governmental activities
program revenues: 13,736,802 13,248,076 13,782,040 13,300,874 11,861,162
Business-type activities:
Charges for services:
Downtown Enhancement - - - - -
Parking - - - - -
Proposition A Transit - - - - -
Proposition C Transit - - - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues: - - - - -
Total primary government
program revenues: 13,736,802 13,248,076 13,782,040 13,300,874 11,861,162
1 Transit operations were transferred to special revenue funds in fiscal year 2005.
2 The Parking Fund was combined with the General Fund in fiscal year 2006.
CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
145 263
2017 2018 2019 2020 2021
Net revenues (expenses):
Governmental activities (21,872,332) (31,457,596) (30,140,841) (32,806,194) (35,102,839)
Business-type activities - - - - -
Total net revenues (expenses) (21,872,332) (31,457,596) (30,140,841) (32,806,194) (35,102,839)
General revenues and other changes in net assets:
Governmental activities:
Taxes:
Property taxes 15,714,094 17,097,712 18,640,303 19,584,959 20,966,460
Sales tax 2,816,289 3,151,207 3,133,311 2,722,468 3,192,853
Other taxes 7,930,375 7,878,400 7,107,116 7,134,010 7,233,903
Grants and contributions not restricted to
specific programs 1,304,880 1,315,223 2,346,524 1,829,299 2,490,562
Investment income - - - - -
Other general revenues 564,798 982,343 2,701,560 1,499,878 745,148
Transfers - - - - -
Settlement (Note 14) - - - - -
Total governmental activities 28,330,436 30,424,885 33,928,814 32,770,614 34,628,926
Business-type activities:
Investment income - - - - -
Other general revenues - - - - -
Miscellaneous - - - - -
Transfers - - - - -
Total business-type activities - - - - -
Total primary government 28,330,436 30,424,885 33,928,814 32,770,614 34,628,926
Changes in net assets
Governmental activities: 6,458,104 (1,032,711) 3,787,973 (35,580) (473,913)
Business-type activities: - - - - -
Total primary government 6,458,104$ (1,032,711)$ 3,787,973$ (35,580)$ (473,913)$
1 Transit operations were transferred to special revenue funds in fiscal year 2005.
2 The Parking Fund was combined with the General Fund in fiscal year 2006.
CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
146 264
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
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
2021 20,966,460 3,192,853 453,596 721,090 261,051 2,552,964 2,171,538 1,065,762 31,385,314
(accrual basis of accounting)
CITY OF HERMOSA BEACH
Governmental Activities Tax Revenues By Source
Last Ten Years
147 265
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148
266
2012 2013 2014 2015 2016
General Fund:
Reserved
Unreserved
Non-spendable 14,271$ 21,589$ 10,603$ 19,444$ 21,261$
Restricted 255,200 391,504 410,289 460,304 329,890
Committed 10,592 10,592 28,900 28,900 28,900
Assigned 5,776,500 6,555,423 7,655,210 10,005,040 8,529,250
Unassigned - - - - -
Total general fund 6,056,563$ 6,979,108$ 8,105,002$ 10,513,688$ 8,909,301$
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Non-spendable 1,500$ 1,600$ - 5,835$
Restricted 3,604,992 3,659,218$ 4,083,450 3,728,100$ 3,430,617
Committed 117,415 137,166 432,606 431,716 1,305,276
Assigned 961,251 847,266 2,831,179 7,646,948 11,348,565
Unassigned - (24,138)
Total all other governmental funds 4,685,158$ 4,643,650$ 7,348,835$ 11,806,764$ 16,066,155$
Total governmental funds 10,741,721$ 11,622,758$ 15,453,837$ 22,320,452$ 24,975,456$
Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.
CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
149 267
2017 2018 2019 2020 2021
General Fund:
Reserved
Unreserved
Non-spendable 66,700$ 478,479$ -$ -$ 560,718$
Restricted 158,149 170,336 - - 437,326
Committed 1,115,600 1,144,500 - - 1,995,135
Assigned 8,322,103 7,781,460 - - 10,669,958
Unassigned - - 10,514,092 13,122,873 5,834,252
Total general fund 9,662,552$ 9,574,775$ 10,514,092$ 13,122,873$ 19,497,389$
All other governmental funds:
Reserved
Unreserved, reported in:
Special revenue funds
Non-spendable 7,083$ 9,280$ 2,310$ -$ 15,179$
Restricted 5,102,759 7,677,889 5,561,493 6,399,757 9,899,766
Committed 879,008 1,144,884 1,024,954 1,405,179 2,592,712
Assigned 12,706,958 13,068,691 16,241,139 5,327,702 10,646,352
Unassigned - - (111) 9,446,109 (827,043)
Total all other governmental funds 18,695,808$ 21,900,744$ 22,829,785$ 22,578,747$ 22,326,966$
Total governmental funds 28,358,360$ 31,475,519$ 33,343,877$ 35,701,620$ 41,824,355$
Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.
CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
Fiscal Year
150 268
2012 2013 2014 2015 2016
Revenues:
Property taxes 12,056,548$ 12,618,579$ 13,368,615$ 14,198,054$ 15,113,479$
Other taxes 9,722,036 10,076,591 10,492,906 10,992,377 11,302,910
Licenses and permits 668,405 783,121 971,336 916,073 1,111,366
Fines and forfeitures 2,475,311 2,416,031 2,781,240 2,652,193 2,412,554
Use of money and property 815,367 1,102,797 1,077,154 1,087,758 965,738
Intergovernmental 1,555,097 896,216 1,350,674 1,290,849 949,255
Charges for services 4,301,971 6,312,731 6,722,773 7,318,409 8,130,681
Miscellaneous 198,858 469,725 630,271 688,047 679,937
Interest earned on investments 109,186 131,749 137,909 244,026 445,260
Total revenues 31,902,779 34,807,540 37,532,878 39,387,786 41,111,180
Expenditures
Current:
Legislative and legal 1,170,820 893,460 1,093,518 1,170,229 1,958,940
General government 2,293,402 2,550,162 2,806,176 3,040,426 3,458,191
Public safety 16,604,695 16,926,014 17,768,720 18,142,958 21,272,474
Community development 1,177,696 1,279,999 1,548,185 1,722,513 1,806,130
Culture and recreation 989,265 1,110,456 1,132,849 1,246,532 1,291,808
Public works 3,852,318 4,946,423 5,216,430 5,317,541 6,622,698
Capital outlay 2,414,507 1,813,990 2,774,016 3,620,185 2,953,123
Debt service:
Cost of issuance n/a n/a n/a n/a -
Principal n/a n/a n/a n/a -
Interest n/a n/a n/a n/a 233,425
Total expenditures 28,502,703 29,520,504 32,339,894 34,260,384 39,363,364
Excess (deficiency) of revenues
over (under) expenditures 3,400,076 5,287,036 5,192,984 5,127,402 1,747,816
Other financing sources (uses)
Proceeds from sale of assets 2,360 - - - 11,799,905
Transfers in 1,911,100 1,381,842 3,905,349 6,911,913 5,733,408
Transfers out (4,641,769) (5,787,841) (5,267,254) (5,172,700) (16,392,700)
Total other financing
sources (uses) (2,728,309) (4,405,999) (1,361,905) 1,739,213 1,140,613
Net change in fund balances 671,767$ 881,037$ 3,831,079$ 6,866,615$ 2,888,429$
Debt service as a percentage of
noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.6%
Fiscal Year
CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
151 269
2017 2018 2019 2020 2021
Revenues:
Property taxes 16,209,008$ 17,530,492$ 18,565,796$ 19,573,354$ 20,968,403$
Other taxes 11,821,528 12,248,900 12,306,567 11,188,808 11,972,339
Licenses and permits 967,956 1,055,631 850,059 729,622 904,362
Fines and forfeitures 2,122,335 2,809,367 2,373,432 2,237,802 2,133,603
Use of money and property 1,047,084 1,340,018 1,952,941 1,069,049 1,542,571
Intergovernmental 1,031,191 358,523 1,062,434 1,333,882 1,324,163
Charges for services 8,412,322 9,259,210 8,303,529 7,346,217 7,543,716
Miscellaneous 540,021 249,152 634,114 673,546 196,138
Interest earned on investments 6,175 152,359 1,380,012 1,173,125 10,289
Total revenues 42,157,620 45,003,652 47,428,884 45,325,405 46,595,584
Expenditures
Current:
Legislative and legal 1,448,509 1,313,261 1,499,065 1,300,018 1,474,436
General government 3,722,659 3,751,020 4,274,743 4,850,826 4,882,989
Public safety 21,392,637 21,468,409 22,087,381 21,604,659 22,155,535
Community development 1,869,018 2,034,235 2,063,502 2,601,067 2,177,790
Culture and recreation 1,395,915 1,446,996 1,600,519 1,587,893 1,338,693
Public works 6,106,648 6,343,525 6,756,773 6,685,858 6,581,335
Capital outlay 1,644,253 2,164,817 6,058,710 4,863,984 853,530
Debt service:
Cost of issuance - - - - 229,987
Principal 335,000 434,992 460,000 480,000 -
Interest 375,332 355,738 332,497 310,107 491,542
Total expenditures 38,289,971 39,312,993 45,133,190 44,284,412 40,185,837
Excess (deficiency) of revenues
over (under) expenditures 3,867,649 5,690,659 2,295,694 1,040,993 6,409,747
Other financing sources (uses)
Proceeds from sale of assets - - - - -
Transfers in 1,942,014 1,271,842 4,155,801 3,930,602 4,504,242
Transfers out (2,356,750) (3,915,326) (4,583,137) (2,613,852) (4,504,242)
Total other financing
sources (uses) (414,736) (2,643,484) (427,336) 1,316,750 -
Net change in fund balances 3,452,913$ 3,047,175$ 1,868,358$ 2,357,743$ 6,409,747$
Debt service as a percentage of
noncapital expenditures 2.0% 2.2% 2.1% 2.1% 1.9%
Fiscal Year
CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
152 270
Fiscal Real
year property Transient Utility
ended Property Sales transfer Franchise occupancy user's
June 30 tax tax tax fees tax tax Other Total
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 28,030,538
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
2021 20,968,403 3,192,853 453,596 721,090 2,552,964 2,171,538 3,580,298 33,640,742
(modified accrual basis of accounting)
CITY OF HERMOSA BEACH
General Government Tax Revenues By Source
Last Ten Fiscal Years
153 271
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
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) 5,379,750 1.00 5,332,719 5.63%
2015 5,181,815 455,035 12,635 104,834 (43,278) 5,711,045 1.00 5,667,767 6.16%
2016 5,522,546 484,979 13,186 111,635 (43,260) 6,089,089 1.00 6,045,828 6.62%
2017 5,994,296 508,160 13,921 120,700 (43,295) 6,593,784 1.00 6,550,489 8.29%
2018 6,432,195 532,168 14,242 145,238 (41,125) 7,082,716 1.00 7,041,591 7.42%
2019 6,837,257 566,389 15,437 162,374 (41,043) 7,540,415 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%
2021 7,682,189 624,581 17,697 149,144 (34,812) 8,459,799 1.00 8,424,987 5.89%
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.
154 272
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
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
2021 1.000000 0.039111 0.023624 - - 0.003500 1.066235
Source: Los Angeles County Auditor-Controller
CITY OF HERMOSA BEACH
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of assessed value)
Note: In 1978 California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is
shared by all taxing agencies wherein the subject property resides. In addition to the 1.00% fixed amount, property owners are
charged taxes as a percentage of assessed property values for the payment of any voter approved bonds.
155 273
Percent of total
Taxable city taxable
assessed value assessed value
SCEC > AC (1) 85,851,523$ 1.01%
EQR Gallery Apartments Limited Partnership (1) 76,757,753 0.91%
Stand and Pier Hermosa Parent LLC (7) 29,661,859 0.35%
South Bay LLC (7) 27,489,455 0.32%
1601 PCH LP (1) 26,943,911 0.32%
Sailfish Holdings LLC (3) 20,724,294 0.24%
Hermosa Hotel Investments LLC (1) 19,985,594 0.24%
IWF Hotel Hermosa LP (1) 18,373,495 0.22%
Blake Holdings II LLC (1) 18,309,818 0.22%
Kathy Ishii Trust (2) 18,125,453 0.21%
342,223,155$ 4.04%
Percent of total
Taxable city taxable
assessed value assessed value
73,297,264$ 1.48%
EQR Gallery Apartments Limited Partnership (1) 58,125,092 1.18%
1601 PCH LP (1) 27,292,872 0.55%
Diana Albergate Trust (5) 25,034,205 0.51%
William Stirton Trust (5) 17,369,670 0.35%
Hermosa Hotel Investments LLC (1) 16,434,756 0.33%
Reg8 Plaza Hermosa LLC (7) 14,377,990 0.29%
Sepulveda Blvd Properties LLC (4) 13,261,671 0.27%
Beta Group (2) 12,415,086 0.25%
Boris LLC (1) 12,372,198 0.25%
269,980,804$ 5.46%
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
2012
2021
156 274
Fiscal Taxes levied Collections in
year ended for the Percent subsequent Percent
June 30 fiscal year Amount of levy years Amount of levy
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%
2021 17,849,937 17,293,022 96.88% 17,293,022 96.88%
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
157 275
Fiscal
year ended Number of Number of Total assessed
June 30 permits Valuation permits Valuation value
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
2021 806 24,132,281 63 27,325,785 8,459,798,643
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
158 276
City assessed valuation 8,459,798,643$
Redevelopment agency incremental valuation -
Total assessed valuation 8,459,798,643$
Estimated
share of
Percentage Outstanding debt overlapping
applicable 6/30/20 debt
Overlapping debt repaid with property taxes:
West Basin Water District debt service 0.531% 13,101,783 69,592
Hermosa Beach School District debt service 2005 refunding 100.000% 4,193,698 4,193,698
Hermosa Beach School District debt service 2016 A 100.000% 24,130,000 24,130,000
Hermosa Beach School District debt service 2016 B 100.000% 33,180,000 33,180,000
El Camino Community College District 2002 series 2012C 6.661% 142,035,305 9,461,229
El Camino Community College District 2012 refunding 6.661% 12,650,000 842,639
El Camino Community College District 2012 series 2016 A 6.661% 88,475,000 5,893,480
El Camino Community College District 2016 refunding 6.661% 62,850,000 4,186,553
El Camino Community College District 2012 series 2018B 6.661% 45,610,000 3,038,165
El Camino Community College District 2012 series 2020C 6.661% 90,465,000 6,026,038
Total overlapping debt repaid with property taxes 516,690,786$ 91,021,394
City direct debt:
2020 Lease Revenue Bonds (including premiums) 9,721,058$
Total City direct debt 9,721,058
Total direct and overlapping debt 100,742,452$
Direct Debt 0.000%
Overlapping Debt 1.080%
Total Debt 1.080%
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, 2021
159 277
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160
278
2012 2013 2014 2015 2016
Assessed valuation 4,944,940,538$ 5,093,189,582$ 5,379,750,286$ 5,711,045,616$ 6,089,089,031$
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,236,235,135$ 1,273,297,396$ 1,344,937,572$ 1,427,761,404$ 1,522,272,258$
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ 228,340,839$
Total net debt applicable to limit -$ -$ -$ -$ 11,500,000$
Legal debt margin 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ 239,840,839$
Total debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 5.3%
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
California Government Code section 43605 provides for a legal debt limit of 15%
Fiscal Year
CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
161 279
2017 2018 2019 2020 2021
Assessed valuation 6,593,783,921$ 7,082,716,558$ 7,540,414,646$ 7,989,293,188$ 8,459,798,643$
Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,648,445,980$ 1,770,679,140$ 1,885,103,662$ 1,997,323,297$ 2,114,949,661$
Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 247,266,897$ 265,601,871$ 282,765,549$ 299,598,495$ 317,242,449$
Total net debt applicable to limit 11,265,000$ 10,830,000$ 10,370,000$ 9,890,000$ 8,150,000$
Legal debt margin 236,001,897$ 254,771,871$ 272,395,549$ 289,708,495$ 309,092,449$
Total debt applicable to the limit
as a percentage of debt limit 4.7% 4.3% 3.8% 3.4% 2.6%
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
California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed
CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years (Continued)
162 280
Fiscal Year Ended
June 30
Lease Revenue
Bonds
Total
Government
Activities
Total Primary
Government
Percentage of
Personal
Income1
Per Capita
Debt2
2012 - - - N/A -
2013 - - - N/A -
2014 - - - N/A -
2015 - - - N/A -
2016 11,464,040$ 11,464,040$ 11,464,040$ 0.97% 579
2017 11,008,280$ 11,008,280$ 11,008,280$ 1.01% 561
2018 10,537,892$ 10,537,892$ 10,537,892$ 1.15% 536
2019 10,047,508$ 10,047,508$ 10,047,508$ 1.24% 506
2020 9,537,124$ 9,537,124$ 9,537,124$ 1.43% 486
2021 9,721,058$ 9,721,058$ 9,721,058$ 1.47% 500
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
163 281
Fiscal Year Ended
June 30
Lease Revenue
Bonds Total
Percent Assessed
Value1 Per Capita
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
2016 11,464,040$ 11,464,040$ 53.11% 579
2017 11,008,280$ 11,008,280$ 59.90% 561
2018 10,537,892$ 10,537,892$ 67.21% 536
2019 10,047,508$ 10,047,508$ 75.05% 506
2020 9,537,124$ 9,537,124$ 83.77% 486
2021 9,721,058$ 9,721,058$ 87.03% 500
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).
164 282
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165
283
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)
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
2021 19,451 678,829,092 68,272 - 7.0% 1,414
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
166 284
Number of Percent of total
Employer employees employment
Behavior And Education, Inc. 235 5.88%
City of Hermosa Beach 169 4.23%
Lazy Acres 125 3.13%
Von's 121 3.03%
Hermosa Beach School District 90 2.25%
Trader Joe's 89 2.23%
Sunrise Assissted Living 87 2.18%
First Steps for Kids, Inc. 70 1.75%
American Junkie 66 1.65%
Hennessey's Tavern 65 1.63%
Number of Percent of total
Employer employees employment
24 Hour Fitness 171 4.87%
City of Hermosa Beach 148 4.21%
Von's 117 3.33%
Ralph's Grocery 105 2.99%
American Junkie 101 2.88%
First Step for Kids, Inc. 80 2.28%
Hennessey's Tavern 78 2.22%
Shorewood Realtors, Inc. 77 2.19%
Abigaile & Ocean Bar 76 2.16%
Hermosa Beach School District 75 2.14%
Source: City of Hermosa Beach Finance Department
2021
2012
CITY OF HERMOSA BEACH
Principal Employers
Current Year and Ten Years Ago
167 285
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government 13 17 18 20 20 21 21 20 20 20
Public safety 74 74 75 81 82 76 63 64
1 65 1 71
Community development 8 8 8 8 10 11 12 11 12 12
Culture and recreation 3 2 2 3 4 4 4 4 4 4
Public works 17 15 20 17 23 23 21 20 22 22
Total 115 116 123 129 139 135 121 119 122 129
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
General government - - 3 4 6 4 5 10 5 9
Public safety 12 24 13 6 14 5 3 3
1 2 1 1
Community development 1 1 2 3 2 3 2 4 3 2
Culture and recreation 19 26 21 25 27 29 25 40 9 23
Public works 1 2 - 3 1 3 2 3 3 5
Total 33 53 39 41 50 44 37 60 22 40
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
168 286
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public safety
Police:
Physical arrests 781 857 945 732 739 615 589 536 389 492
Traffic citations issued 2,290 1,819 3,421 2,406 1,966 1,826 1,408 1,154 498 629
Parking citations issued 68,193 70,678 74,228 65,783 62,957 56,398 57,206 66,029 66,029 59,861
Fire:
Number of emergency calls 1 2,487 2,488 2,386 2,467 2,678 2,427 1,965 1,549 2,344 2,506
Inspections2 559 495 657 1,061 540 611 227 - - -
Community development:
Building permits issued 492 462 537 509 622 488 519 460 431 977 3
Culture and recreation:
Number of recreation classes 169 129 134 514 526 498 617 422 4 431 4 598 4
Total enrollment 4,327 4,982 5,464 4,247 4,947 4,817 5,271 5,109 3,050 3,530
Public works:
Graffiti removal 383 408 212 209 200 112 201 148 5 49 5 36 5
Permits issued 718 736 819 904 1,406 1,496 1,617 1,615 2,717 3,482
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 to issue permits for the 2020-21 fiscal year. The software does not break down by type of
permit issued at this time.
4 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.
5 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
169 287
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public safety
Police:
Police stations 1 1 1 1111111
Parking meters 1,663 1,663 1,565 1,553 1,553 1,557 1,558 1,558 1,558 1,558
Fire:
Fire stations 1 1 1 1111111
Culture and recreation
Community centers 1 1 1 1111111
Community theatres 1 1 1 1111111
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 40 40 40 40 40 40 40 37
Streets (miles) 40 40 40 40 40 40 40 40 40 40
Streetlights 392 392 400 400 400 400 400 400 400 400
Storm drains (miles) 1 1 2 2222222
Traffic Signals 19 19 19 19 19 19 19 19 19 19
Infiltration (miles)2 0.6 0.6 0.6 0.2 0.2 0.2 0.2 0.2 0.2 0.2
Source: City of Hermosa Beach Finance Department
2 This is a system for monitoring the water quality before it reached the Pacific Ocean. The project was
funded by a Federal ARRA Grant passed through the California State Water Control Board. Grant
approval required the submission on an ongoing monitoring plan that was accepted by the grantor.
The project received an award from the American Public Works Association in 2010.
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.
170 288
OTHER REPORTS
171
289
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290
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
173
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, 2021, 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 31, 2022.
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.
291
174
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.
Gruber and Lopez, Inc.
Newport Beach, California
March 31, 2022
Gruber and lopez, Inc.
292
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0343
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY
REPORT FOR APRIL 2022
(Emergency Management Coordinator Brandy Villanueva)
Recommended Action:
Staff recommends City Council receive and file the April 2022 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 April 2022.
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. The enclosed report reflects the services for April 2022.
Past Board, Commission and 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 April 2022 monthly report provides an overview of services provided by LACoFD and McCormick
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Staff Report
REPORT 22-0343
Ambulance (Attachment 1: April 2022 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
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.The
paramedic squad (Squad 100)only responds to calls for service exclusively within the City of
Hermosa Beach.It does not provide mutual aid,thereby remaining available for calls within Hermosa
Beach.
Each of the LACoFD apparatus has 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.
McCormick Ambulance is one of the emergency medical transport companies within Los Angeles
County.LACoFD does not conduct patient transport;therefore,unincorporated areas are included in
the fire department transport contracts with various providers.Contract cities are responsible for
negotiating and contracting with a medical transport provider for their community.Within the South
Bay,many of the cities have contracted with McCormick Ambulance to conduct emergency medical
transportation including the City of Hermosa Beach.
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 are safely provided by one of the two Emergency Medical Technicians
(EMTs) 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 April 2022 call transfer report provided by LACoFD indicates that two calls had a transfer time
longer than the NFPA standard.The calls were received during a period of increased call volume in
the dispatch center.
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Staff Report
REPORT 22-0343
Table 1 below provides the response details for the two incidents.
Table 1:
Date Call
Type
Call
Transfer
Time
Length of
Transfer
LACoFD
Dispatch
Time
On
Scene
Time
Length of
Arrival
Total
Response
Time
April 7 Injury
ALS
12:51 114
seconds
12:55 12:58 3 minutes 4 minutes 54
seconds
April 24 Vehicle
Fire
18:43 79
seconds
18:45 18:50 5 minutes 6 minutes 19
seconds
Table definitions
·Call Transfer Time:The exact time when the call was 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 April 2022,McCormick Ambulance responded to 52 calls for services within the City of Hermosa
Beach.The April 2022 report indicated that 5 calls resulted in delayed Code 3 responses,which is a
decrease in delayed calls from the March 2022 transport report.There were 2 delayed Code 2
responses in April 2022.A Code 3 response is one where 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.A Code 2 response is one where the
responding emergency units are driving with lights and sirens to an emergency classified as a basic
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Staff Report
REPORT 22-0343
responding emergency units are driving with lights and sirens to an emergency classified as a basic
life support or BLS call.
Staff reviewed the April 2022 McCormick Ambulance monthly report.The following outlines the
reasons for the delayed responses:
·Multiple Calls: (5) The dispatch center received multiple calls at the same time; and
·Distance:(2)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
Hermosa Beach;therefore,the responding ambulance often begins the response outside of
the City.
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.
Although the emergency medical transport units were delayed in arriving on scene within the
allowable timeframe for 7 calls in April 2022,patients were provided timely life-saving emergency
medical care on scene by Los Angeles County Fire Department paramedics.When LACoFD arrives
on scene,it takes paramedics 5 to 10 minutes to conduct the required treatment protocols prior to
commencing transport with McCormick Ambulance.During the patient treatment phase,the
requested ambulance is typically on scene waiting for the paramedics to complete their treatment
protocols even if the ambulance response is delayed.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
General Plan. Relevant Policies are listed below:
Safety Element
Goal 5. High quality police and fire protection services provided to residents and visitors.
Policy:
·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.
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Staff Report
REPORT 22-0343
Fiscal Impact:
Fire and ambulance services are contracted and accounted for during the annual budget process.
Attachments:
1.Fire and Ambulance Monthly Report-April 2022
Respectfully Submitted by: Brandy Villanueva, Emergency Management Coordinator
Noted for Fiscal Impact: Viki Copeland, Finance Director
Approved: Suja Lowenthal, City Manager
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E100 S100 Total
FIRE, EXPLOSION
150 ‐ Outside rubbish fire, other 1 1 0.45%
FIRE, EXPLOSION Total 1 ‐ 1 0.45%
RESCUE, EMS
300 ‐ Rescue, emergency medical call (EMS) call, other 7 4 11 4.91%
311 ‐ Medical assist, assist EMS crew 8 7 15 6.70%
320 ‐ Emergency medical service, other 3 2 5 2.23%
321 ‐ EMS call, excluding vehicle accident with injury 56 58 114 50.89%
322 ‐ Vehicle accident with injuries 1 1 0.45%
323 ‐ Motor vehicle/pedestrian accident (MV Ped)1 1 2 0.89%
RESCUE, EMS Total 75 73 148 66.07%
SERVICE CALL
500 ‐ Service Call, other 1 1 0.45%
SERVICE CALL Total 1 ‐ 1 0.45%
GOOD INTENT CALL
600 ‐ Good intent call, other 10 4 14 6.25%
611 ‐ Dispatched & cancelled enroute 18 4 22 9.82%
GOOD INTENT CALL Total 28 8 36 16.07%
FALSE ALARM, FALSE CALL
733 ‐ Smoke detector activation due to malfunction 1 1 0.45%
744 ‐ Detector activation, no fire ‐ unintentional 1 1 0.44%
FALSE ALARM, FALSE CALL Total 2 ‐ 2 0.89%
SPECIAL OR OTHER INCIDENT TYPE
900 ‐ Special type of incident, other 18 4 22 9.82%
911 ‐ Citizen complaint 13 1 14 6.25%
SPECIAL OR OTHER INCIDENT TYPE Total 31 5 36 16.07%
Grand Total 138 86 224 100.00%
Note:
Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses.
LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OF APRIL 2022
Incident Type UNIT RESPONSES Percentage
Submitted by Brandy Villanueva, Emergency Management Coordinator 1 298
DAY OF THE WEEK E100 S100 Total
Sunday 20 13 33
Monday 19 13 32
Tuesday 13 6 19
Wednesday 14 4 18
Thursday 20 17 37
Friday 28 21 49
Saturday 24 12 36
Grand Total 138 86 224
Note:
Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses.
LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OF APRIL 2022
UNIT RESPONSES
0
5
10
15
20
25
30
E100
S100
Submitted by Brandy Villanueva, Emergency Management Coordinator 2 299
TIME OF THE DAY E100 S100 Total
00:00:00 TO 00:59:59 1 1 2
01:00:00 TO 01:59:59 4 2 6
02:00:00 TO 02:59:59 ‐
03:00:00 TO 03:59:59 3 3 6
04:00:00 TO 04:59:59 5 2 7
05:00:00 TO 05:59:59 ‐
06:00:00 TO 06:59:59 ‐
07:00:00 TO 07:59:59 5 3 8
08:00:00 TO 08:59:59 8 5 13
09:00:00 TO 09:59:59 9 6 15
10:00:00 TO 10:59:59 5 5 10
11:00:00 TO 11:59:59 11 7 18
12:00:00 TO 12:59:59 10 4 14
13:00:00 TO 13:59:59 5 1 6
14:00:00 TO 14:59:59 8 6 14
15:00:00 TO 15:59:59 8 7 15
16:00:00 TO 16:59:59 11 7 18
17:00:00 TO 17:59:59 5 3 8
18:00:00 TO 18:59:59 8 6 14
19:00:00 TO 19:59:59 8 3 11
20:00:00 TO 20:59:59 7 5 12
21:00:00 TO 21:59:59 7 6 13
22:00:00 TO 22:59:59 7 3 10
23:00:00 TO 23:59:59 3 1 4
Grand Total 138 86 224
Note:
Data based on updated fireview ‐ apparatus 2022 data. Hermosa Beach units responses.
LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OFAPRIL 2022
UNIT RESPONSES
‐
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 23:59:59E100
S100
Submitted by Brandy Villanueva, Emergency Management Coordinator 3 300
Ad Hoc Report:
Name:
Date:
Description:
Seizure Date Seizure Time ALI City Answer Secs Call Type ID ALI Class
4/1/2022 10:13:18 HMB 2 911 Calls WPH2
4/1/2022 16:09:31 HERMOSA BEACH 2 911 Calls WPH2
4/1/2022 20:46:23 HERMOSA BEACH 2 911 Calls WPH2
4/2/2022 10:45:39 HMB 2 911 Calls WPH2
4/2/2022 14:27:05 HERM BCH 17 911 Calls WPH2
4/2/2022 14:37:24 HERMOSA BEACH 19 911 Calls VOIP
4/4/2022 09:18:30 HERMOSA BEACH 2 911 Calls WPH2
4/4/2022 18:51:26 HERMOSA BEACH 2 911 Calls VOIP
4/4/2022 21:31:31 HERMOSA BEACH 2 911 Calls VOIP
4/5/2022 10:33:17 HERMOSA BEACH 1 911 Calls VOIP
4/6/2022 00:06:58 HERMOSA BEACH 2 911 Calls WPH2
4/6/2022 08:02:53 HERM BCH 2 911 Calls WPH2
4/7/2022 12:12:53 HERMOSA BEACH 2 911 Calls RESD
4/7/2022 12:51:59 HERMOSA BEACH 114 911 Calls VOIP
4/7/2022 12:53:25 HERMOSA BEACH 5 911 Calls WPH2
4/7/2022 13:35:06 HERMOSA BEACH 32 911 Calls VOIP
4/7/2022 22:39:36 HERMOSA BEACH 7 911 Calls VOIP
4/8/2022 00:15:59 HERMOSA BEACH 2 911 Calls RESD
4/8/2022 01:48:42 HERM BCH 2 911 Calls WPH2
4/8/2022 01:48:43 HERM BCH 5 911 Calls WPH2
4/8/2022 11:56:20 HERM BCH 2 911 Calls WPH2
4/8/2022 15:21:25 HERM BCH 2 911 Calls WPH2
4/8/2022 20:26:49 HERMOSA BEACH 2 911 Calls VOIP
4/8/2022 20:43:41 HERMOSA BEACH 2 911 Calls WPH2
4/8/2022 21:42:13 HERMOSA BEACH 2 911 Calls WPH2
4/8/2022 21:43:02 HERMOSA BEACH 5 911 Calls WPH2
4/9/2022 15:18:32 HERM BCH 2 911 Calls WPH2
4/10/2022 03:18:08 HERMOSA BEACH 2 911 Calls RESD
4/10/2022 11:09:20 HERM BCH 2 911 Calls WPH2
4/10/2022 11:45:59 HERMOSA BEACH 2 911 Calls VOIP
4/10/2022 12:03:35 HMB 1 911 Calls WPH2
4/10/2022 14:15:13 HMB 2 911 Calls WPH2
4/10/2022 14:18:08 HERMOSA BEACH 1 911 Calls WPH2
4/10/2022 14:18:19 HERMOSA BEACH 2 911 Calls WPH2
4/11/2022 03:34:27 HERM BCH 2 911 Calls WPH2
4/11/2022 14:01:48 HERM BCH 2 911 Calls WPH2
4/12/2022 09:26:20 HERM BCH 3 911 Calls WPH2
4/14/2022 09:55:43 HERM BCH 2 911 Calls WPH2
4/14/2022 13:15:02 HERMOSA BEACH 2 911 Calls VOIP
Hermosa Call Answer Time
5/1/2022
Apr-22
Los Angeles County Fire
Submitted by Brandy Villanueva, Emergency Management Coordinator 4
301
4/15/2022 00:39:32 HERMOSA BEACH 52 911 Calls WPH2
4/15/2022 08:58:00 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 09:11:22 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 14:27:53 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 15:30:40 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 15:58:04 HMB 2 911 Calls WPH2
4/16/2022 22:27:50 HERM BCH 2 911 Calls WPH2
4/16/2022 22:28:29 HERM BCH 8 911 Calls WPH2
4/16/2022 22:29:01 HERM BCH 2 911 Calls WPH2
4/17/2022 17:42:22 HMB 2 911 Calls WPH2
4/19/2022 18:19:21 HERMOSA BEACH 2 911 Calls RESD
4/20/2022 09:56:51 HERMOSA BEACH 2 911 Calls RESD
4/20/2022 18:47:08 HERM BCH 2 911 Calls WPH2
4/20/2022 22:50:13 HERMOSA BEACH 2 911 Calls WPH2
4/21/2022 18:32:45 HERMOSA BEACH 25 911 Calls RESD
4/21/2022 20:02:41 HERMOSA BEACH 2 911 Calls VOIP
4/21/2022 23:52:49 HERMOSA BEACH 9 911 Calls VOIP
4/22/2022 01:02:47 HERM BCH 3 911 Calls WPH2
4/22/2022 07:07:45 HMB 17 911 Calls WPH2
4/23/2022 10:08:46 HERMOSA BEACH 2 911 Calls VOIP
4/23/2022 12:55:06 HERMOSA BEACH 2 911 Calls RESD
4/23/2022 17:10:48 HERMOSA BEACH 2 911 Calls WPH2
4/23/2022 20:01:00 HERMOSA BEACH 18 911 Calls RESD
4/23/2022 20:01:03 HERM BCH 57 911 Calls WPH2
4/24/2022 15:10:08 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 16:02:20 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 16:08:08 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 18:42:27 HERMOSA BEACH 79 911 Calls VOIP
4/25/2022 13:44:45 HERM BCH 2 911 Calls WPH2
4/25/2022 15:20:23 HERMOSA BEACH 2 911 Calls VOIP
4/25/2022 18:40:03 HERM BCH 2 911 Calls WPH2
4/25/2022 19:02:08 HERMOSA BEACH 2 911 Calls VOIP
4/26/2022 08:17:51 HERM BCH 2 911 Calls WPH2
4/26/2022 16:48:44 HERM BCH 2 911 Calls WPH2
4/26/2022 17:44:43 HERMOSA BEACH 2 911 Calls RESD
4/27/2022 08:21:55 HERM BCH 36 911 Calls WPH2
4/27/2022 19:18:48 HERM BCH 2 911 Calls WPH2
4/28/2022 11:46:41 HERM BCH 2 911 Calls WPH2
4/28/2022 21:14:16 HERM BCH 22 911 Calls WPH2
4/29/2022 08:35:51 HMB 2 911 Calls WPH2
4/30/2022 10:54:50 HERMOSA BEACH 2 911 Calls VOIP
Average Call Answer Time (seconds)8
Submitted by Brandy Villanueva, Emergency Management Coordinator 5
302
McCormick Ambulance
April 2022
Total Number of Dispatched Calls
Dispatched Calls Totals
Transported 52
Cancelled 41
Grand Total 93
NOTE: None
52, 56%
41, 44%
Total Dispatched Calls
Transported
Cancelled
Submitted by Brandy Villanueva, Emergency Management Coordinator 6 303
Calls per the day of the week
Day of the Week Completed Cancelled Total
Sunday 8 8 16
Monday 10 4 14
Tuesday 4 3 7
Wednesday 3 1 4
Thursday 6 11 17
Friday 13 9 22
Saturday 8 5 13
Grand Total 52 41 93
0
2
4
6
8
10
12
14
Completed
Canceled
Submitted by Brandy Villanueva, Emergency Management Coordinator 7 304
Response by the Time of Day
Time of Day Total Response
00:00:00 TO 00:59:59 1
01:00:00 TO 01:59:59 2
02:00:00 TO 02:59:59 0
03:00:00 TO 03:59:59 3
04:00:00 TO 04:59:59 3
05:00:00 TO 05:59:59 0
06:00:00 TO 06:59:59 0
07:00:00 TO 07:59:59 4
08:00:00 TO 08:59:59 6
09:00:00 TO 09:59:59 7
10:00:00 TO 10:59:59 5
11:00:00 TO 11:59:59 6
12:00:00 TO 12:59:59 6
13:00:00 TO 13:59:59 1
14:00:00 TO 14:59:59 7
15:00:00 TO 15:59:59 7
16:00:00 TO 16:59:59 8
17:00:00 TO 17:59:59 3
18:00:00 TO 18:59:59 6
19:00:00 TO 19:59:59 3
20:00:00 TO 20:59:59 5
21:00:00 TO 21:59:59 6
22:00:00 TO 22:59:59 3
23:00:00 TO 23:59:59 1
Grand Total 93
0
1
2
3
4
5
6
7
8
9
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 8 305
Response Times Within Allowable
Time
Delayed Response Cancelled Total
Code 3: Response
Time of 8:59 or less
17 5 0 22
Code 2: Response
Time of 15:00 or
less
28 2 0 30
Cancelled
Responses
0 0 41 41
Grand Total 45 7 41 93
Submitted by Brandy Villanueva, Emergency Management Coordinator 9 306
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0369
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
Recommended Action:
Staff recommends City Council authorize remote teleconference/virtual meetings of all City of
Hermosa Beach legislative bodies in accordance with Assembly Bill 361 (“AB 361”),by finding that:
(1)a statewide state of emergency is currently in place;(2)state and local officials have imposed or
recommended measures to promote social distancing in connection with COVID-19;and meeting in
person would present imminent risks to the health or safety of attendees.
Background:
All meetings of the City’s legislative bodies are subject to the Ralph M.Brown Act (Gov.Code §§
54950 et seq.)and must be open and public so that any member of the public may attend and
participate in the meetings.Commencing in March of 2020,Governor Newsom issued a series of
executive orders aimed at preventing the spread of a respiratory disease that came to be known as
the novel coronavirus,“COVID-19.”Among these were Executive Orders (“EO”)N-25-20,N-29-20,
and N-35-20 (collectively,the “Brown Act Orders”)that waived the teleconferencing requirements of
the Brown Act to allow legislative bodies to meet virtually.
On June 11,2021,the Governor issued EO N-08-21 to begin winding down some of the prior
measures that were adopted to respond to COVID-19.Notably,EO N-08-21 rescinded the Brown
Act Orders,effective September 30,2021.On September 16,2021,Governor Newsom signed AB
361,which became effective October 1,2021,and amended the Brown Act to allow legislative
bodies to meet virtually,without following the Brown Act’s standard teleconferencing rules,provided
that the legislative body makes specific findings, which include the following:
1.A statewide state of emergency is currently in place;
2.State or local officials have imposed or recommended measures to promote social distancing
in connection with COVID-19; and/or
3.Meeting in person would present imminent risks to the health or safety of attendees.
Continued compliance with AB 361 would require City Council to approve the action making theCity of Hermosa Beach Printed on 9/12/2022Page 1 of 2
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REPORT 22-0369
Continued compliance with AB 361 would require City Council to approve the action making the
required findings at least every 30 days.
Discussion:
All three findings under AB 361 can be made given the current circumstances.The Governor has proclaimed a state of
emergency in response to the ongoing COVID-19 pandemic.The state of emergency currently remains in effect.
Further,State officials,including the California Department of Public Health,have recommended measures to promote
social distancing in connection with COVID-19,which are currently in place.Similarly,local officials,including the
County Public Health Officer,have also recommended measures to promote social distancing in connection with COVID
-19.In a recommendation dated September 28,2021,the County Public Health Officer stated that “utilizing
teleconferencing options for public meetings is an effective and recommended social distancing measure to facilitate
participation in public affairs and encourage participants to protect themselves and others from the COVID-19 disease.”
Finally,the City has determined that meeting in person would present imminent risks to the health or safety of
attendees. Accordingly, all of the above-referenced AB 361 findings currently exist.
If City Council thus desires to allow virtual meetings in order to both ensure the health and safety of
the public,the legislative bodies of the City,and City staff,as well as continuity of government in
allowing regularly-scheduled meetings to continue to occur without interruption,staff recommends
City Council authorize virtual/teleconference meetings by making the findings set forth above.
Alternative:
If City Council does not make the findings pursuant to AB 361,the City would have to conduct its public meetings for
City Council and other public boards and commissions in person and not have the option of conducting its meetings via
teleconferencing.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
Link to Assembly Bill 361
Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0352
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
APPROVAL OF AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE ROTARY
CLUB OF HERMOSA BEACH FOR USE OF THE CORNER OF 11 TH STREET AND VALLEY
DRIVE FOR THE FRIDAY FARMERS MARKET
(Community Resources Manager Lisa Nichols)
Recommended Action:
Staff recommends City Council:
1.Approve an agreement with the Rotary Club of Hermosa Beach to provide its weekly Friday
farmers market for a three-year term (Attachment 1); and
2.Authorize the Mayor and City Manager to execute and the City Clerk to attest to the
agreement subject to approval by the City Attorney.
Executive Summary:
Since 1990,the City has approved a farmers market to be held weekly on Friday afternoons.The
market was formerly managed by the Hermosa Beach Chamber of Commerce and Visitors Bureau
(Chamber of Commerce)until the Rotary Club of Hermosa Beach (Rotary Club)began managing it in
2015.The current agreement with the Rotary Club is set to expire on June 24,2022.Staff and the
Rotary Club worked to develop mutually agreeable terms for a new three-year agreement that would
extend through June 27, 2025.
Background:
In 1990,the Chamber of Commerce began managing a farmers market every Friday afternoon.The
Friday farmers market took place at various locations throughout the City until 2003,when it was
moved to the corner of 11th Street and Valley Drive, which is its current location.
In 2014,the Chamber of Commerce elected to dedicate its resources to a new farmers market on
Pier Plaza on Wednesday afternoons in an effort to bring more daytime visitors during the weekdays
to the downtown area.This left the Friday farmers’market without management.Due to community
feedback and requests to uphold the Friday farmers market at its current location,the Rotary Club
stepped in to manage the farmers market in 2015 and has done so, successfully, ever since.
At its regular meeting on March 8,2016,City Council approved an agreement with the Rotary Club
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At its regular meeting on March 8,2016,City Council approved an agreement with the Rotary Club
for its management of the Friday farmers market for a three-year term,expiring February 21,2019
(Attachment 2).
On February 18,2019,staff administratively approved an extension to the agreement to allow an
additional four-month term,expiring June 28,2019.This extension was to allow additional time to
further negotiate the terms of the agreement and to align the terms of the agreement with the
adopted vendor requirements in the agreement for the Chamber of Commerce’s Wednesday farmers
market (Attachment 3).
At its regular meeting on June 11,2019,City Council approved the first amendment to the agreement
to modify the vendor requirements to allow both handmade and commercial goods to increase the
variety of options and experiences for market visitors.The vendor requirements outlined in the first
amendment aligned with the terms in the agreement for the Chamber of Commerce’s Wednesday
farmers market.Additionally,the first amendment extended the agreement by four months through
June 24, 2022 (Attachment 4).
The Chamber of Commerce agreement to hold the Wednesday farmers market expired June 24,
2020.The Chamber of Commerce did not request a new contract following the expiration due to
concerns with COVID-19 and resource challenges.The Wednesday farmers market is no longer
held.
Past Board, Commission and Council Actions Meeting Date Description March 8, 2016 Approval of a three-year Agreement between the City of
Hermosa Beach and the Rotary Club of Hermosa Beach
for use of the corner of 11th
Street and Valley Drive for the
Friday Farmers Market Expiring February 21, 2019.
June 11, 2019 Approval of First Amendment to the Agreement to modify
the vendor requirements and extend the term by three
years to June 24, 2022.
Discussion:
The Friday farmers market takes place on the corner of 11th Street and Valley Drive and is heavily
attended by school-aged children and the community in the surrounding area.The proposed new
agreement maintains the terms of the prior agreement with minor formatting and language updates,
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agreement maintains the terms of the prior agreement with minor formatting and language updates,
which do not impact the production of the farmers market or its event format.
At the request of the Rotary Club,the new agreement includes language that permits amplified sound
at the farmers market to provide entertainment to visitors.The amplified sound would consist of a
musician and an instrument with a portable audio system.The entertainment has taken place at past
farmers markets with no reportable concerns.After discussing with nearby residents and the
Hermosa Beach Police Department,which has a building located directly next to the farmers market
location,staff has no concerns including language to allow amplified sound during the hours of the
farmers market.
Staff recommends City Council approve the proposed agreement (Attachment 1)with the Rotary
Club to continue to provide the Friday farmers market.
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 5. Small beach town character is reflected throughout Hermosa Beach.
Policy:
·5.7 Visitor and resident balance.Recognize the desire and need to balance visitor-
serving and local-serving uses as a key to preserving character and the economic vitality of
the community.
Goal 6.A broad-based and long-term economic development strategy for Hermosa Beach that
supports existing businesses while attracting new business and tourism.
Policy:
·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.
Parks and Open Space Element
Goal 3.Community parks and facilities encourage social activity and interaction.
Policies:
·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.
·3.5 Health and physical activity.Increase the availability of space and variety of
activities that promote community health and physical activity such as community gardens,City of Hermosa Beach Printed on 9/12/2022Page 3 of 4
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activities that promote community health and physical activity such as community gardens,
fitness stations/equipment, and fields/courts.
Fiscal Impact:
The Rotary Club is required to have an annual business license with the City,an annual Amplified
Sound Permit,and is responsible for all costs related to City services or personnel required for the
event.
Attachments:
1.Proposed New Agreement
2.Agreement
3.Extension Letter
4.First Amendment to Agreement
5.Link to March 8, 2016 City Council Staff Report
6.Link to June 11, 2019 City Council Staff Report
Respectfully Submitted by: Lisa Nichols, Community Resources Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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1 |ROTARY FARMERS MARKET A G R E E M E N T
AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE ROTARY CLUB OF HERMOSA BEACH
FOR USE OF THE CORNER OF 11TH STREET AND VALLEY DRIVE FOR THE FRIDAY FARMERS MARKET
This Agreement for use of the corner of 11th Street and Valley Drive described in Exhibit A
(hereinafter called “Agreement”) for a farmers market (herein called “Event”) is made the 25th
day of June, 2022 by and between the City of Hermosa Beach, a municipal corporation
(hereinafter called “CITY”) and the Rotary Club of Hermosa Beach, a California nonprofit public
benefit corporation (hereinafter called “ROTARY”).
RECITALS
A. ROTARY has requested and CITY is willing to make the corner of 11th Street and Valley Drive
(hereinafter called “Site”, as depicted on Exhibit A, “Site Map”), available to ROTARY for its
weekly Event pursuant to the terms and conditions of this Agreement.
B. CITY desires a commitment from ROTARY regarding its use of the Site for the benefit of the
residents.
C. ROTARY desires a commitment from CITY to secure the Site for the Event for the term of this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and contained herein, the parties agree as
follows:
I. TERM AND PAYMENT
a. The Term of this Agreement shall be for three years commencing on June 25, 2022
and terminating on June 27, 2025 unless earlier terminated as provided herein.
b. ROTARY agrees to pay CITY applicable fees for its use of the Site. Fees are to be as
established in the CITY’s annual Master Fee Schedule. Applicable fees may
include:
i. Costs associated with adequate trash removal and/or "clean-up”
deficiency work;
ii. Costs related to CITY services or personnel required for the Event, including
an annual Amplified Sound Permit fee; and
iii. Event co-sponsor fee(s).
1. All Event co-sponsors must be approved by the City.
c. Either the CITY or ROTARY may terminate this Agreement at any time upon giving
thirty (30) days written notice to the other party as outlined in Section XIV(b).
d. The proceeds generated from the Event shall not be used for political campaign
purposes, whether in connection with candidates for political office or ballot
measures.
II. THE EVENT
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a. The Event may be produced each Friday during the term of this agreement .
b. The Event shall take place in the locations depicted in Exhibit A. Use of additional
location(s) may be approved as mutually agreed upon between the CITY and
ROTARY.
c. The Event shall consist of vendor booths with a market composition of:
a. Sixty percent (60%) of vendors that are farmers as well as purveyors of
prepackaged food. The market shall maintain a minimum of 6 farmers at all
times with exceptions for inclement weather and natural disasters; and
b. Forty percent (40%) of vendors shall provide hot food a nd meals or be artisans
selling home-crafted wares.
d. Farmers shall be considered California producers of fresh fruit, nuts, vegetables, flowers,
honey, eggs, nursery stock, plants and livestock products including fish and shellfish
produced under controlled conditions in waters or ponds located in California.
e. In cases where the market composition is not achievable due to inclement weather or
natural disasters, ROTARY shall make a good faith effort to adhere to them as much as
possible.
f. Should the vendor composition of the market be out of compliance and, in those
cases, not associated with inclement weather or a natural disaster, ROTARY will have
30 days to rectify to the satisfaction of the CITY. Failure to do so will result in terminat ion
of this Agreement.
g. The Event may include live acoustic or amplified music during market hours between
12:00 PM to 4:00 PM on each Event day. Amplifiers must be pointed south so as to limit
noise impacts to the surrounding residential property. A stage and/or generator is not
permitted, unless otherwise approved by the CITY and the Los Angeles County Fire
Department.
II. ROTARY RESPONSIBILITIES
a. ROTARY shall maintain its status as a non-profit organization throughout the term of
this Agreement.
b. ROTARY shall manage the Event, including coordination of set up/tear down
between the hours of 9:00 AM and 5:00 PM on each Event day.
c. A designated event representative, subject to approval by the City, shall remain
on-site during the entire Event. The event representative shall be responsible for
managing the vendors, assuring that vendors remove all trash and that the Site is
clean and free of equipment, waste or debris at the conclusion of each Event.
d. ROTARY shall be solely responsible for rectifying any outstanding “clean -up”
deficiency as may be determined at the sole discretion of the CITY.
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e. ROTARY shall manage the placement of booths and shall have the authority to
remove unauthorized booths, furniture and other objects that interfere with the
conduct of the Event.
f. ROTARY shall provide, at its own expense, all necessary funds, staff, equipment and
materials necessary to adequately produce and promote the Event.
g. ROTARY shall provide a designated representative to consult as necessary with the
CITY designee regarding all facets of the Event.
h. ROTARY shall provide adequate access to the E vent for people with disabilities in
a manner that is satisfactory to the CITY and keep all pedestrian aisles and
pathways clear and unobstructed.
i. ROTARY shall be responsible for securing all necessary permits and licenses, as
determined by the CITY.
j. ROTARY shall prohibit the sale of alcoholic and tobacco products at the Event.
k. ROTARY has read, understands, and accepts responsibility for ensuring
Implementation of the City's Ban on Certain Polystyrene Products, Single -Use Plastic
Products, and Single-Use Products in Section 8.64.030 and 8.64.050 of the Municipal
Code, which reads as follows:
i. 8.64.030(D). No person shall use or distribute polystyrene food service ware
at city-sponsored events, city-managed concessions and city meetings
open to the public. This subsection shall apply to the function organizers,
agents of the organizers, city contractors, food providers, beverage
providers or nonprofit vendors and any other person that enters into an
agreement with one or more of the function sponsors to sell or distribute
prepared food or raw food or beverages or otherwise provide a service
related to the function.
a.) Biodegradable food service containers shall be used by
vendors.
ii. 8.64.050(A) Prohibition of Plastic Straws, Stirrers, and Utensils. Food
providers and beverage providers and nonprofit vendors shall not use or
distribute plastic beverage straws, plastic stirrers or plastic utensils,
whether for use on site, to go, or delivery. Disposable straws, stirrers, and
utensils must be nonplastic, made from nonplastic materials, such as
paper, pasta, sugar cane, wood, or bamboo.
a.) Vendors are prohibited from using plastic bags to deliver,
provide or hand merchandise to customers.
l. ROTARY is permitted access to the kitchen area at the Community Services
Department building for use of the sink and storage space on each Event day
between 9:00am and 5:00pm. ROTARY is permitted to use this area for storage of
non-food items and will not block any exits or entrances. ROTARY agrees to remove
all trash from the kitchen area on each Event day and ensure that this area is clean.
III. CITY RESPONSIBILITIES
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a. CITY shall permit ROTARY to conduct the event as described in Section II.
b. CITY shall provide ROTARY a designated liaison from the CITY to serve as the
assigned contact regarding the operation of activities on the Site. All decisions of
a CITY designee shall be final with respect to any issues that involve compliance
with this Agreement as well as any issues that directly and/or adversely impact the
community. Said CITY designee shall consult with the designated event
representative of ROTARY and it shall be the goal of both parties to reach mutual
agreement on matters of Event operation.
c. CITY shall provide ROTARY any CITY services required for the Event (e.g., police, fire.
building inspection. etc.) as deemed necessary by the respectiv e City Manager,
Police Chief, or Community Resources Manager.
d. CITY shall coordinate and provide necessary CITY permits.
e. CITY shall make any necessary contacts on behalf of ROTARY with the Los Angeles
County Department of Beaches and Harbors.
f. The CITY agrees to provide ROTARY with access to the kitchen area at the
Community Services Department building for use of the sink and storage space on
each Event day between 9:00am and 5:00pm.
VI. ADVERTISING & SPONSOR BANNERS
a. ROTARY is permitted to install and maintain a banner advertising the Event on the
fence surrounding the basketball court located at Clark Field.
a. CITY reserves the right to relocate or remove banners if they are found to be
inappropriate or pose a safety issue. CITY will notify ROTARY before relocating or
removing banners unless a safety concern warrants immediate action.
b. All signs, props, product facsimiles, etc. desired by ROTARY to identify the Event
shall be approved as to location and content by CITY. CITY will not unnecessarily
deny said approval and will not curtail certain constitutional rights of ROTARY.
X. INSURANCE
a. ROTARY shall provide the CITY a Certificate of Insurance providing personal injury and
property damage liability insurance naming CITY, the County of Los Angeles, its
officers, employees, volunteers and agents as additional insured with a minimum
coverage of two million dollars ($2,000,000) combined single limit coverage.
Insurance is to be placed with insurers with a current AM Best’s rating of no less than
A: VII. Said insurance shall not be canceled or altered without thirty (30) days’ notice
in writing to CITY.
b. ROTARY insurers shall be primarily responsible for all liability resulting from or arising out
of the performance of the contract, and CITY and their insurers shall not be required
to contribute.
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c. For insurance purposes, the Site shall be defined to include all areas occupied or
affected by the Event, as depicted on Exhibit A (“Site Map”).
XI. INDEMNITY AND ASSUMPTION OF RISK
a. ROTARY shall hold harmless, defend and indemnify the CITY, its officers, employees and
volunteers from and against any and all liability, loss, damage expense, and costs
(including without limitation costs and fees of litigation), of every nature arising o ut of
or in connection with ROTARY’s farmers market and performance of the league
hereunder or its failure to comply with any of its obligations contained in this
Agreement except such loss or damage which was caused by the sole negligence or
willful misconduct of the CITY. The CITY shall indemnify ROTARY 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 the sole
negligence or willful misconduct of the CITY.
b. By signing this agreement, ROTARY acknowledges the contagious nature of COVID-19
and voluntarily assume the risk that Event staff and customers may be exposed to or
infected by COVID-19 by using the Site, and that such exposure or infection may result
in personal injury, illness, permanent disability, and death. ROTARY understands that
the risk of becoming exposed to or infected by COVID -19 at the Site may result from
the actions, omissions, or negligence of Event staff and customers, including, but not
limited to, City of Hermosa Beach employees, officials and agents.
c. ROTARY assumes all risks of damages and injury to Event staff and customers arising out
of or attributable to its use of the Site during the COVID-19 pandemic. ROTARY hereby
releases and discharges the City of Hermosa Beach and its officers, employees and
agents, from any and all claims for losses, injuries, damages or liabilities, including
personal injury and injury to personal property arisi ng out of or attributable to its use of
the Site during the COVID-19 pandemic, and ROTARY expressly releases the City of
Hermosa Beach and its officers, employees and agents from and against any and all
claims or liability arising from their negligence. ROTARY voluntarily agrees to assume all
of the foregoing risks and accepts sole responsibility for any injury to Event staff and
customers including, but not limited to, personal injury, disability, and death, illness,
damage, loss, claim, liability, or expense, of any kind, that may be experienced or
incurred in connection with use of the facilities described in Exhibit A. ROTARY hereby
releases, covenants not to sue, discharges, and holds harmless the City of Hermosa
Beach, its employees, officers, and agents, of and from all liabilities, claims, actions,
damages, costs or expenses of any kind arising out of or relating thereto. ROTARY
understands and agrees that this release includes any claims based on the actions,
omissions, or negligence of the City of Hermosa Beach, its employees, officers and
agents, whether a COVID-19 infection occurs before, during, or after use of the Site.
XII. INDEPENDENT CONTRACTOR
a. CITY and ROTARY shall each be and act as independent contractors and under no
circumstances shall this agreement be construed as one of agency or partnershi p
between CITY and ROTARY. Each party acknowledges and agrees that it neither has
nor will give the appearance or impression of having any legal authority to bind or
commit the other party in any way other than as authorized by this Agreement.
Nothing in this Agreement shall be construed to create a joint venture between the
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parties hereto or to obligate either party for debts or obligations incurred by the other
party in the performance of this Agreement.
XIII. COMPLIANCE WITH THE LAW
a. Should it be determined that this Agreement or any provision hereof violates any federal,
state, or local law or regulation, then the parties shall promptly modify this Agreement to
the extent necessary to bring about compliance with such law and/or regulation;
provided, however, that if such modification would cause this Agreement to fail in its
essential purpose or purposes, it shall be deemed cancelled by mutual agreement of the
parties and neither party shall have any further obligations or liabilities with respect to th is
Agreement.
XIV. RESERVATION OF RIGHTS BY CITY
a. CITY reserves the right in its sole discretion at any time or times to close and suspend the
use of the Site 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 ROTARY for the effect of such suspe nsion and
closure of the Site, nor shall CITY have any responsibility to provide ROTARY with substitute
location(s). ROTARY’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
and its contractual rights as described in this Agreement.
b. Notwithstanding any other provision of this lease both parties reserve the right to terminate
the Agreement at any time and without cause upon giving thirty (30) days w ritten notice
to the other party.
XV. ENTIRE AGREEMENT
a. This Agreement constitutes the entire understanding between the parties with respect to
the subject matter hereof and supersedes all prior understandings or agreements in regard
hereto. This Agreement cannot be altered or modified except by an agreement in writing
signed by both parties.
CITY OF HERMOSA BEACH
Michael Detoy, Mayor Suja Lowenthal, City Manager
ATTEST APPROVED AS TO FORM
_________________________________ _________________________________
Myra Maravilla, City Clerk
Michael Jenkins, City Attorney
HERMOSA BEACH ROTARY CLUB
_________________________________
Dean Nota, President
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7 |ROTARY FARMERS MARKET A G R E E M E N T
EXHIBIT A – Site Map
319
320
321
322
323
324
325
326
327
328
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0356
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
APPROVE OCCUPANCY LICENSE FOR COMMUNITY GARDEN
(Environmental Programs Manager Doug Krauss)
Recommended Action:
Staff recommends City Council:
1.Approve the occupancy license for the Community Garden at South Park (Attachment 1); and
2.Authorize the City Manager to execute and the City Clerk to attest to the agreement subject to
approval by the City Attorney.
Executive Summary:
The Community Garden at South Park is a volunteer-run community garden open for use by
Hermosa Beach residents.Approval of a new five-year occupancy license would ensure continuity of
operation for the garden and its users.
Background:
The City of Hermosa Beach Sustainability Plan (2011)recommended the installation of a Community
Garden in the City to educate and engage Hermosa Beach residents in sustainability initiatives,
strengthen the community, and reduce emissions associated with transport of food and goods.
In October 2011,a demonstration garden was constructed in South Park located at 425 Valley Drive.
The objective of the demonstration garden was to showcase locally grown organic edibles and native
plants,demonstrate the use of composting and worm bins,and water conservation practices.The
demonstration garden was removed in 2015 as part of the extensive South Park renovation and a
new permanent location for the garden was incorporated into the northeast corner of South Park.
The garden has operated at its current location since 2016 and is managed by volunteer garden
managers.The garden manager and volunteers perform most maintenance and upkeep at the
garden,with occasional assistance from City staff.All garden plots are consistently occupied by
residents and the garden managers administer the ongoing requests of prospective users.
Currently,the fee paid to the Community Garden for using a plot is $50 annually with a required $100
deposit.Interested residents can contact the garden managers via email,as detailed on the City
website,to secure a plot in the garden.Users may utilize a specific plot for a maximum of two years.
The two-year rotation ensures that any residents waiting for a plot may also be given the opportunity
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The two-year rotation ensures that any residents waiting for a plot may also be given the opportunity
to participate in the community garden.
Past Council Actions
Meeting Date Description
February 9, 2016 Approved Occupancy License for the Community Garden
Discussion:
The Occupancy License between the City and the Community Garden is for the purpose of operating
and maintaining the community garden in South Park.Due to the expiration of the prior license,staff
recommends approving a new five-year license to ensure continuity of this popular local amenity.
The proposed new Occupancy License (Attachment 1)retains the language of the 2016 license with
only minor language updates.The garden would continue to operate in its current manner including
the requirement to donate 20 percent of food grown to a local food pantry.The garden users are
diligent in honoring the food donation requirement.
The Hermosa Beach Community Garden has been an active member of the Los Angeles Community
Garden Council (“LA Garden Council”)since 2012.The LA Garden Council acts as the Garden’s
fiscal agency sponsor and manages the Garden’s financial transactions including purchasing the
required liability insurance.
City staff would continue to provide outreach to residents on the presence and availability of the
garden.The public outreach includes providing information on the City website,posting to social
media, and supporting the variety of outreach and activities that garden managers directly administer.
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 10. Abundant landscaping, trees, and green space provided throughout the community
Policy:
·10.2 Non-invasive landscapes.Encourage the planting of native,non-invasive,and
drought tolerant landscaping and trees,and encourage the planting of edible landscapes and
fruit trees
Fiscal Impact:
No monetary consideration is required in exchange for the rights to this occupancy license
agreement. City staff assists with various related maintenance concerns on an as-needed basis.
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Attachments:
1.Proposed Occupancy License
2.Existing Occupancy License
3.Link to February 9, 2016 Staff Report
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
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CITY OF HERMOSA BEACH
OCCUPANCY LICENSE FOR COMMUNITY GARDEN
Term: 5 Years (renewable) Effective Date:
06/15/2022
License Holder:
Hermosa Beach Community Garden
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CITY OF HERMOSA BEACH
Occupancy License for Community Garden in South Park
This Occupancy License for Community Garden ("License Agreement" or "License") is made and
entered into this 15th day of June, 2022, by and between the CITY OF HERMOSA BEACH ("City") and
HERMOSA BEACH COMMUNITY GARDEN, an unincorporated association ("Licensee") for the
purpose of operation and maintenance of a community garden in the northeast corner of South Park.
RECITALS
A. Licensee desires the exclusive occupancy of a designated portion of the northeast corner of
South Park to operate a community garden for the benefit of the Hermosa Beach community.
B. Licensee represents and warrants that it possesses the qualifications, experience and expertise
to operate a community garden.
C. A community garden is a use consistent with park and open space purposes that will enhance
the overall appearance and use of South Park, and provide a outdoor recreational opportunity for
City residents of all ages.
NOW, THEREFORE, in consideration of the abovementioned, the parties do hereby agree as follows:
1. Location. The area to be governed by this License Agreement is approximately
3,721 square feet of the northeast corner of South Park ("Licensed Premises"), as shown on the site
plan attached hereto as "Exhibit A" and incorporated herein by reference.
2. Use of Licensed Premises. At all times the Licensee shall manage and operate
the Licensed Premises exclusively for the purpose of operating a community garden in accordance with
the terms and provisions of this License Agreement. The Licensed Premises shall not be used by
Licensee for any other purpose. Licensee shall educate and inform City residents of the existence and
availability of the garden. Licensee shall immediately inform City of any changes to garden
management personnel and provide management contact information to City staff.
3. Licensed Premises Improvements. The Licensed Premises will be delivered to
the Licensee in "AS IS" condition and Licensee accepts the Licensed Premises in the condition it is in at
the time of delivery and shall thereafter maintain it in good condition free of debris, litter and trash. Any
alterations to the Licensed Premises for its use as a community garden shall be at Licensee’s expense, and
shall be subject to the prior written approval of City. Signs, if any, shall be subject to City approval.
Artificial lighting is prohibited.
4. Term of License. This License is awarded for a period of five (5) years (the "License
Term"), commencing when the City issues a Notice to Proceed, unless earlier terminated as provided in
Section 9 hereof. This License may be renewed for additional terms upon its expiration, if the parties
mutually agree in writing. City reserves the right to alter the terms of the License upon extension.
5. Operating Hours. The community garden may be open for gardening activities daily
between sunrise and sunset. The garden shall be closed and secured between sunset and sunrise.
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6. Operating Rules. Initial assignment of garden plots shall be based on the date and time
of the sign-up during the ongoing enrollment period- a lottery will not be used. Licensee shall maintain a
wait list in the order in which applications for use of a garden plot are received. Garden plots may be
assigned for not longer than two (2) year terms. A term may not be renewed with the incumbent gardener
as long as there is someone on the wait list. Gardeners shall not grow marijuana (cannabis) or any crop
that is illegal under State or federal law. Gardeners shall adhere to the rules set forth in Exhibit B
attached hereto and incorporated herein by reference.
7. Consideration. In light of the benefits provided to the community by the community
garden, no monetary consideration shall be required in exchange for the rights granted by this License
Agreement. That notwithstanding, (a) 20% of the food grown in the garden shall be donated to a food
pantry approved by the City, pursuant to a contract between Licensee and the food pantry that shall be
subject to City review and approval; (b) neither Licensee nor any gardener shall sell any food grown in
the Licensed Premises; and (c) Fees charged to gardeners for use of a plot in the community garden shall
be subject to advance City approval. The Garden Manager shall also provide information to the City
concerning food donation and general garden status upon request.
8. Utilities and Maintenance of the Licensed Premises.
(a) Licensee shall be responsible for all maintenance.
(b) Licensee hereby agrees that it has received the Licensed Premises in satisfactory
condition. Licensee shall clean and maintain the Licensed Premises, and shall keep it in
clean, orderly and sanitary condition at all times throughout the License Term.
(c) Licensee assumes responsibility for all damage to City's property caused by its use of the
Licensed Premises and shall reimburse City for correction of any such damage.
(d) City staff may remove, or require to be removed, any plants, structures or other materials
at its sole discretion and will promptly notify Garden Manager
9. Termination and Revocation of License. This License may be terminated with or without
cause by either party by providing written notice to the other party at least sixty (60) days in advance of
desired termination date. Licensee expressly acknowledges that City's plans for and/or use of the
Licensed Premises may change at any time in a manner inconsistent with this License and that Licensee
has no permanent right to the continued use of the Licensed Premises, nor does this License give rise to
any such right, title or interest in the Licensed Premises. In the event of termination, Licensee shall
remove all of its equipment and materials from the Licensed Premises, vacate the Licensed Premises
within five (5) working days, surrender this License, and deliver the Licensed Premises in a clean,
sanitary condition substantially the same as when the Licensed Premises was delivered to Licensee.
10. Insurance Requirements.
a. Licensee shall have insurance in the following amounts:
(1) General liability insurance with at least One Million Dollars ($1,000,000) combined
single-limit coverage per occurrence for bodily injury and property damage; and
(2) Workers' compensation and employer's liability insurance as required by the
California Labor Code, as amended.
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b. Each insurance policy required above shall be acceptable to the City Attorney:
(1) The General Liability policy shall name the City specifically and separately as an
additional insured under the policy by a valid endorsement.
(2) Provide for written notice within 30 days or less of policy cancellation or termination;
(3) Provide coverage by a Best's A-V rated carrier or better, admitted in California;
(4) Provide a service of suit endorsement for all carriers not admitted in California; and
(5) Provide that the City may pay any self-insured retention or deductible should
Licensee fail or refuse to do so.
c. Failure to comply with insurance requirements under this Agreement shall be a material breach of
this Agreement.
11. Indemnification. Licensee (which in this paragraph includes its employees, agents, or
subcontractors) shall indemnify, defend and hold harmless the City of Hermosa Beach, its officers,
agents and employees from any and all loss, damage, liability, cost or expenses, including attorneys' fees,
expert fees and costs of suit, for any of the following: a) Any personal injuries, property damage or death
that Licensee or its invitees and guests may sustain while using the Licensed Premises, or from any
dangerous condition of the Licensed Premises; and b) Any claim of liability to third parties arising
out of Licensee's negligence or wrongful or acts or omissions, excepting only liability caused by the
sole negligence or wrongful conduct of the City.
12. Anti-Assignment Clause. Licensee shall not assign, delegate, transfer or sublicense any duty or
right under this License, or any portion of the Licensee’s use of the Licensed Premises. Any such
purported assignment, delegation, transfer or sublicense shall be void unless the City has previously
approved such action in writing.
13. Costs and Attorney's Fees. In the event of litigation brought by either party to this License
Agreement to enforce any provisions of this Agreement, the prevailing party shall be entitled to an award
of reasonable attorney's fees and costs of suit incurred pursuant to said litigation.
14. Licensee not a Lessee. No legal title or leasehold interest in the Licensed Premises shall be
deemed or construed to have been created or vested in the Licensee by anything contained in this License
Agreement.
15. Provisions Cumulative. The foregoing provisions are cumulative and in addition to and not in
limitation of any other rights or remedies available to the City.
16. Merger Clause. This License Agreement and its Exhibits are the entire understanding of the
parties, and there are no other terms or conditions, written or oral, controlling this matter. In the event of
any conflict between the provisions of this License Agreement and its Exhibits, the provisions of this
License Agreement shall prevail.
17. Anti-Waiver Clause. None of the provisions contained herein shall be waived because of
previous failure to insist upon strict performance, nor shall any provision be waived because any other
provision has been waived, in whole or in part.
18. Severability. The invalidity in whole or in part of any provision of this agreement shall not void
or affect the validity of any other provisions of this License Agreement.
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19. Notices to Parties. Any statements, communications or notices to be provided pursuant to this
Agreement shall be sent to the attention of the persons indicated below, until such time as notice of any
changes of person to be notified or change of address is forwarded to all parties:
Licensee:
Hermosa Beach Community Garden
City:
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
Attn: City Manager
20. Choice of Law. This Agreement shall be governed by the laws of the State of California. Venue
for any action arising from this Agreement, including but not limited to matters concerning validity,
construction, performance or enforcement shall be exclusively in the state or federal courts located in Los
Angeles County, California.
21. Possessory interest. Licensee acknowledges that this License may create a taxable
possessory interest subject to property taxation, and that Licensee shall be solely responsible for
satisfaction of any property taxes levied in connection with this License.
22. City’s Access to Licensed Premises. Licensee acknowledges the City's absolute right to enter
the License Premises in order to assure Licensee's compliance with the terms of this License.
23. Non-Discrimination. Licensee represents and agrees that it does not and will not in the
operation of the community garden pursuant to this License discriminate against any person because of
race, religion, color, medical condition, sex, sexual orientation, national origin, political affiliation or
opinion, or pregnancy or pregnancy-related condition.
IN WITNESS WHEREOF, this Agreement has been executed on behalf of the City by its Officer
thereunto authorized and by Licensee, the date and year first above written.
CITY OF HEMOSA BEACH
A Municipal Corporation
HERMOSA BEACH COMMUNITY GARDEN
Suja Lowenthal, City Manager
Date:
Date:
APPROVED AS TO FORM:
By:
Michael Jenkins, City Attorney
ATTEST:
Myra Maravilla, City Clerk
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COMMUNITY GARDENEXHIBIT A344
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0376
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
APPROVAL OF ROAD REPAIR AND ACCOUNTABILITY
ACT OF 2017 (SENATE BILL 1) PROJECT LIST FOR THE
CITY OF HERMOSA BEACH FOR FISCAL YEAR 2022-23
(Public Works Director Joe SanClemente)
Recommended Action:
Staff recommends City Council:
1.Approve a resolution (Attachment 1)adopting a list of projects for Fiscal Year 2022-2023
funded by Senate Bill 1 (SB 1) Road Repair and Accountability Act of 2017; and
2.Direct staff to submit the project list (Attachment 2)and supporting documentation to the
California Transportation Commission by July 1, 2022.
Executive Summary:
Senate Bill 1 (SB 1),the Road Repair and Accountability Act of 2017,provides funding for the
maintenance and repair of local streets and roads through a Road Maintenance and Rehabilitation
Account (RMRA).To be eligible for Fiscal Year 2022-2023 funding,the City must submit a project list
to the California Transportation Commission (CTC)by July 1,2022,along with a resolution
documenting the approval of the City's project list.
Background:
On April 28,2017,the Governor of California signed Senate Bill (SB 1)(Beall,Chapter 5,Statutes of
2017),known as the Road Repair and Accountability Act of 2017,to address basic road
maintenance,rehabilitation,and critical safety needs on both the state highway and local streets and
road system.SB 1 increases per gallon fuel excise taxes,increases diesel fuel sales taxes and
vehicle registration fees, and provides for inflationary adjustments to tax rates in future years.
A percentage of this funding is apportioned by formula to eligible cities and counties for basic road
maintenance,rehabilitation,and critical safety projects on the local streets and roads system.The
projected revenue for the City of Hermosa Beach in Fiscal Year 2022-23 is $444,633.
SB 1 revenue is not intended to replace existing local discretionary funding,such as General Fund or
Capital Improvement Funds,for road repair and maintenance projects.Therefore,it requires cities
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Capital Improvement Funds,for road repair and maintenance projects.Therefore,it requires cities
and counties to maintain their existing commitment of local funds for street,road,and highway
purposes in order to remain eligible for Road Maintenance and Rehabilitation Account (RMRA)
funding apportionment as defined by a Maintenance of Effort (MOE)estimate.The MOE estimate
establishes the minimum amount of funding that the City of Hermosa Beach must continue to allocate
on an annual basis toward street and highway projects from local discretionary funds.
The State Controller’s Office (SCO)completed its review of the City’s certified General Fund
discretionary expenditures for street purposes for the period of July 1,2009 through June 30,2012.
Based on the review, the SCO set the City’s MOE at $833,246.
The City is required to submit a list of projects (Attachment 2)to the California Transportation
Commission each fiscal year.The FY 2022-23 list is due to the Commission by July 1,2022.The City
is also required to develop and submit a project expenditure report to the Commission by October 1,
2022 for the FY 2021-22 expenditures and comply with all requirements including reporting
requirements for RMRA funding.
RMRA funding may be used for basic road maintenance,rehabilitation,and critical safety projects on
the local streets and roads system.Streets and Highways Code (SHC)Section 2030 provides a
number of example projects and uses for RMRA funding that include,but are not limited to,the
following:
·Road Maintenance and Rehabilitation;
·Safety Projects;
·Railroad Grade Separations;
·Traffic Control Devices; and
·Complete Streets Components,including active transportation purposes,pedestrian and
bicycle safety projects,transit facilities,and drainage and stormwater capture projects in
conjunction with any other allowable project.
Additionally, RMRA projects may incorporate, where feasible, the following project elements:
·Technologies and material recycling techniques that lower greenhouse gas emissions and
reduce the cost of maintaining local streets and roads through material choice and
construction method;
·Systems and components in transportation infrastructure that recognize and accommodate
technologies including but not limited to Zero Emissions Vehicle (ZEV)fueling or charging and
infrastructure-vehicles communications for transitional or fully autonomous vehicles;
·Project features that increase resilience to the impacts of climate change,fires,floods,and
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sea level rise; and
·Complete Streets elements that improve the quality of bicycle and pedestrian facilities and that
improve safety for all users of transportation facilities.
A city or county may spend its apportionment of RMRA funds on transportation priorities other than
those outlined in SHC Section 2030 if the city or county’s average Pavement Condition Index (PCI)
meets or exceeds 80.Hermosa Beach currently has an average Pavement Condition Index below
80. Therefore, the City must spend the available funding on the types of projects identified above.
RMRA funds may also be used to satisfy a match requirement in order to obtain state or federal
funds for eligible projects.
Analysis:
Based on the expected revenues available for Fiscal Year 2022-23,staff has identified projects that
meet the Street and Highway Code guidance for projects for this year’s list.The recommended
projects are described below and in Attachment 2.
CIP 143-PCH Mobility Improvement Project
Total Fiscal Year 2022-2023 Budget: $75,000
CIP 143 would improve accessibility, mobility, and safety along the Pacific Coast Highway corridor.
CIP 160-PCH Traffic Improvements
Total Fiscal Year 2022-2023 Budget: $300,000
CIP 160 would improve operational mobility along Pacific Coast Highway.The project also includes
improvements including but not restricted to truck turning radius,ADA curb ramps,striping,and
pedestrian signal improvements.
CIP 188-Strand Bikeway and Walkway Improvements at 35th Street
Total Fiscal Year 2022-2023 Budget: $300,000
CIP 188 would improve accessibility and connectivity for bicyclists traveling between the Cities of
Hermosa Beach and Manhattan Beach via The Strand at 35th Street.
CIP 191-Annual Street Improvements
Total Fiscal Year 2022-2023 Budget: $1,700,000
CIP 191 proposes pavement rehabilitation of streets at various locations.The project will also
address limited quantities of deteriorated concrete sidewalk,curb and gutter,curb ramps and
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drainage deficiencies.
CIP 195-City Sidewalk Improvements
Total Fiscal Year 2022-2023 Budget: $150,000
CIP 195 provides repairs,replacements,and improvements to sidewalks throughout the City at
various locations to maintain and improve safety.
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:
Infrastructure Element
Goal 1. Infrastructure systems are functional, safe, and well maintained.
Policy:
·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.
Goal 2.Roadway infrastructure maintenance supports convenient,attractive,and complete streets and
associated amenities.
Policy:
·2.1 Preventive street maintenance.Maintain streets,sidewalks and other public rights-of-way
to provide a reliable network for circulation through a proactive preventive maintenance
program.
·2.2 Pavement rating system.Prioritize roadway re-pavement projects by regularly evaluating
pavement ratings and identifying roadway segments with the greatest deficiencies.
·2.3 Street and sidewalk standards.Require the use of standardized roadway,sidewalk,parkway,curb
and gutter designs to ensure continuity and consistency as property redevelops over time .
Fiscal Impact:
The projected SB 1 revenue for the City in Fiscal Year 2022-23 is $444,633,which would be
expended on the projects listed on the Fiscal Year 2022-23 RMRA Project List (Attachment 2).
Attachments:
1. Draft Resolution Adopting a List of Projects for FY 2022-23 Funded by SB1
2. Hermosa Beach Fiscal Year 2022-23 RMRA Project List
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REPORT 22-0376
Respectfully Submitted by:Andrew Nguyen, Associate Engineer
Concur:Lucho Rodriguez, Deputy City Engineer
Concur:Joe SanClemente, Public Works Director
Noted for Fiscal Impact:Viki Copeland, Finance Director
Legal Review:Mike Jenkins, City Attorney
Approved:Suja Lowenthal, City Manager
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RESOLUTION NO. 22-XXXX
RESOLUTION ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23
FUNDED BY SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017
(Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor
in April 2017 to address the significant multi-modal transportation funding shortfalls statewide;
and
WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the
residents of the City of Hermosa Beach are aware of the projects proposed for funding in our
community and which projects have been completed each fiscal year; and
WHEREAS, the City of Hermosa Beach must adopt by resolution a list of projects
proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account
(RMRA), created by SB 1, which must include a description and the location of each proposed
project, a proposed schedule for the project’s completion, and the estimated useful life of the
improvement; and
WHEREAS, the City of Hermosa Beach, will receive an estimated $444,633 in RMRA
funding in Fiscal Year 2022-23 from SB 1; and
WHEREAS, this is the sixth year in which the City of Hermosa Beach is receiving SB 1
funding and will enable the City of Hermosa Beach County to continue essential road
maintenance and rehabilitation projects, safety improvements, repairing and replacing aging
bridges, and increasing access and mobility options for the traveling public that would not have
otherwise been possible without SB 1; and
WHEREAS, the City of Hermosa Beach has undergone a robust public process to ensure
public input into our community’s transportation priorities/the project list; and
WHEREAS, the City of Hermosa Beach used a Pavement Management System to develop
the SB1 project list to ensure revenues are being used on the most high-priority and cost-effective
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projects that also meet the communities priorities for transportation investment. The projects placed
on the SB1 list for Fiscal Year 2022-23 involves the rehabilitation of a street with a Pavement
Condition Index (PCI) ranging from 34 to 68; and
WHEREAS, the funding from SB1 will help the City of Hermosa Beach maintain and
rehabilitate various streets and sidewalks throughout the City of Hermosa Beach this year and similar
projects in the future; and
WHEREAS, the 2020 California Statewide Local Streets and Roads Needs Assessment
found that the City of Hermosa Beach’s streets and roads are in an At Risk condition and this revenue
will help us increase the overall quality of our road system and over the next decade will bring our
streets and roads into Good condition; and
WHEREAS, the SB 1 project list and overall investment in our local streets and roads
infrastructure with a focus on basic maintenance and safety, investing in complete streets
infrastructure, and using cutting-edge technology, materials and practices, will have significant
positive co-benefits statewide. Without revenue from SB1, the City of Hermosa Beach would have
to otherwise delay projects throughout the community.
NOW, THEREFORE, IT IS HEREBY RESOLVED, ORDERED, AND FOUND by the City
Council of the City of Hermosa Beach, state of California, as follows:
1. The foregoing recitals are true and correct.
2. The following list in Attachment 2 of newly proposed projects will be funded in-part or solely
with Fiscal Year 2022-23 Road Maintenance and Rehabilitation Account revenues.
PASSED AND ADOPTED by the City Council of the City of Hermosa Beach, State of
California this 14 day of June, 2022, by the following vote:
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VOTE: AYES:
NOES:
ABSTAIN:
ABSENT:
PASSED, APPROVED and ADOPTED this 14 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
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Agency Contact:Lucho Rodriguez(310) 318‐0210LoCode:5155lrodriguez@hermosabeach.govPre‐ ConstructionConstruction Min. Max.CIP 143 PCH Mobility Improvement ProjectThis project is to improve accessibility, mobility and safety along the Pacific Coast Highway corridor.Pacific Coast Highway within City limits7/21/2021 10/30/202715 30CIP 160 PCH Traffic ImprovementsThis project improves operational mobility along Pacific Coast Highway. The project also includes improvements including but not restricted to truck turning radius, ADA curb ramps, striping and pedestrian signal improvements.Pacific Coast Highway and 14th St7/21/2021 10/30/202210 20CIP 188 Strand Bikeway and Walkway Improvements at 35th StreetThis project would provide improved accessibility and connectivity for bicyclists travelling between the Cities of Hermosa Beach and Manhattan Beach via The Strand at 35th Street.Hermosa Ave and 35th St7/1/2022 6/1/202615 30CIP 191 Annual Street ImprovementsThis project proposes pavement rehabilitation of streets at various locations. The project will also address limited quantities of deteriorated concrete sidewalk, curb and gutter, curb ramps and drainage deficiencies.7th St From Pacific Coast Highway To Prospect AveBonnie Brae St From Aviation Blvd To 16th StJoy St From Campana St To Bonnie Brae StCampana St From Joy St To Prospect Ave15th St From Pacific Coast Highway To Ocean DrOwosso Ave From Aviation Blvd To 14th StCorona St From Aviation Blvd To 14th St17th St From Prospect Ave To EndGolden Ave From 16th St To End24th Pl From Valley Dr To South Park14th St From Prospect Ave To Pacific Coast HighwayBorden Ave From 21st St To EndAlley From Rhodes St To 20th StAlley From 21st St To 20th StCypress From 6th To EndProspect Ave7/1/2022 6/1/202310 20CIP 195 City Sidewalk ImprovementsThis project provides repairs, replacements, and improvements to sidewalks throughout the City at various locations to maintain and improve safety.Hermosa Ave From 13th St To 14th Ct34th St From Hermosa Ave To Palm DrValley Park Ave From 18th St To End11th St From Hermosa Ave To Beach Dr7/1/2022 10/30/202210 20STATE OF CALIFORNIA • CALIFORNIA TRANSPORTATION COMMISSIONSenate Bill (SB) 1 Proposed Project List Form Local Streets and Roads Program Agency Name:FYHermosa Beach22/23Summary of Proposed Project ListProject No.Project Title Project Description Project LocationEstimated Completion Date(mm/dd/yyyy)Estimated Useful Life (# of yrs)353
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0355
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DECLARING A DROUGHT CRITICAL CONDITION AND IMPLEMENTING
DROUGHT RESPONSE LEVEL 2 CONSERVATION MEASURES PURSUANT TO
HERMOSA BEACH MUNICIPAL CODE SECTION 8.56.090
(Environmental Programs Manager Doug Krauss)
Recommended Action:
Staff recommends City Council adopt a resolution declaring a Drought Critical Condition and
implementing specified Level 2 conservation measures,pursuant to Hermosa Beach Municipal Code
Chapter 8.56.090.
Executive Summary:
Due to persistent Statewide drought conditions,the Governor declared emergency water use
restrictions and directed water purveyors to also implement restrictions.Local agencies are
encouraged to implement restrictions to ensure consistent communication and enforcement
strategies.The Hermosa Beach Municipal Code (HBMC)identifies drought restriction measures that
can be approved by Council to address such conditions.The proposed resolution (Attachment 2)
would ensure that the City’s strategies are consistent with those of the local water purveyor and the
Governor’s Executive Order N-7-22 (Attachment 1).
Background:
On March 28,2022,Governor Gavin Newsom issued Executive Order N-7-22 reiterating
conservation measures issued in 2021 (Attachment 1).The order was issued in response to the
ongoing drought conditions affecting much of the State.Executive Order N-7-22 requires local water
purveyors to implement water shortage contingency plans and calls upon all Californians to limit
indoor and outdoor water usage in the coming months.
On May 24,2022,the State Water Board adopted an emergency regulation set to take effect on or
around June 10,2022.The emergency regulation reiterates prohibitions on overwatering of trees and
watering of decorative grass with potable water.It also explicitly requires water purveyors to
implement their Level 2 water reduction measures and implores other agencies to follow the
requirements of local water suppliers.The emergency regulation will remain in effect for one year
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from the effective date, unless the State Water Board acts to end, modify, or readopt it.
Past Council Actions
Meeting Date Description
August 26, 2014 Approved Resolution Declaring Drought Emergency
Conditions
Discussion:
Drought response Level 2 is declared when a water use reduction of 10-20 percent is required.A
reduction is accomplished primarily through restricting landscape and lawn irrigation to no more than
two days per week,and not more than 15 minutes per watering station or area.These restrictions are
implemented in addition to the many permanent water conservation measures already in place per
the City’s Drought Management Plan,detailed in Chapter 8.56 of the Hermosa Beach Municipal
Code. These include a variety of ongoing conservation requirements such as:
·Prohibition of watering between 9:00 a.m. and 6:00 p.m.;
·Prohibition of ornamental fountains that do not utilize water recycling or re-circulation;
·Requirement of restaurants to provide water only upon request;
·Restrictions on certain outdoor cleaning activities; and
·Requirements for new buildings to install water-efficient devices.
The City also has a variety of ongoing water conservation measures already in place for its facilities
and parks.Once such measure is the use of reclaimed water at its largest green areas including:
Valley Park;South Park;Clark Field;and the Greenbelt.Though reclaimed water use is not subject to
conservation requirements,the City utilizes smart controllers and reduced watering schedules to
reduce reclaimed water use at these facilities.The City utilizes smart irrigation controllers for most of
its parks and green areas and would work with its landscaping contractor to adjust irrigation
schedules to align with these new restrictions.
Staff is currently working with CalWater and West Basin Municipal Water District to identify potential
turf replacement opportunities and to perform an assessment of the City’s facilities to identify other
equipment replacements or adjustments to increase conservation.
The declaration of the Level 2 drought response also gives the City greater enforcement ability for
these prohibited activities.If the resolution is adopted,staff would work with the City’s water purveyor,
California Water Service (CalWater),to coordinate overall messaging to the community.CalWater
has already begun extensive messaging to its customers and City staff would utilize its various
outreach tools and media to augment this messaging.City staff would also add a feature to the
GoHermosa app to allow users to report violations of these drought restrictions.The State offers a
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GoHermosa app to allow users to report violations of these drought restrictions.The State offers a
portal at savewater.ca.gov for reporting water waste,which could be shared through the City’s
outreach efforts.
The Level 2 drought restrictions would remain in place until City Council approves a resolution ending
the declaration.City staff would monitor the ongoing drought conditions and communicate with
CalWater,as well as State and regional agencies,to determine when an end to the declaration is
appropriate.
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:
Sustainability and Conservation Element
Goal 5. Water conservation practices, recycled water use, and innovative water technologies
support a resource efficient community.
Policies:
·5.3 Water conservation programs.Update and improve water conservation and efficiency
programs, requirements, and incentives on a regular basis.
·5.4 Conservation behavior.Maximize water conservation and efficiency upgrades through
education, regulation, and incentives covering every aspect of water use
Fiscal Impact:
There are no fiscal impacts associated with the recommended action.
Attachments:
1.Executive Order N-7-22
2.Draft Resolution
3.Link to August 26, 2014 Staff Report
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
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EXECUTIVE DEPARTMENT
STATE OF CALIFORNIA
EXECUTIVE ORDER N-7-22
WHEREAS on April 12, 202 l, May l 0, 2021, July 8, 202 l, and October 19,
2021, I proclaimed states of emergency that continue today and exist across a ll
the counties of California, due to extreme and expanding drought conditions;
and
WHEREAS climate change continues to intensify the impacts of droughts
on our communities, environment, and economy, and California is in a third
consecutive year of dry conditions, resulting in continuing drought in all parts of
the State; and
WHEREAS the 21st century to date has been characterized by record
warmth and predominantly dry conditions, and the 202 1 meteorological
summer in California and the rest of the western United States was the hottest on
record; and
WHEREAS since my October 19, 2021 Proclamation, early rains in October
and December 2021 gave way to the driest January and February in recorded
history for the watersheds that provide much of California's water supply; and
WHEREAS the ongoing drought will have significant, immediate impacts on
communities with vulnerable water supplies, farms that rely on irrigation to grow
food and fiber, and fish and wildlife that rely on stream flows and cool water;
and
WHEREAS the two largest reservoirs of the Central Valley Project, which
supplies water to farms and communities in the Central Valley and the Santa
Clara Valley and provides critical cold-water habitat for salmon and other
anadromous fish, have water storage levels that are approximately l .1 million
acre-feet below last year's low levels on this date; and
WHEREAS the record-breaking dry period in January and February and the
absence of significant rains in March have required the Department of Water
Resources to reduce anticipated deliveries from the State Water Project to
5 percent of requested supplies; and
WHEREAS delivery of water by bottle or truck is necessary to protect
human safety and public health in those places where water supplies are
disrupted; and
WHEREAS groundwater use accounts for 41 percent of the State's total
water supply on an average annual basis but as much as 58 percent in a
critically dry year, and approximately 85 percent of public water systems rely on
groundwater as their primary supply; and
WHEREAS coordination between loca l entities that approve permits for
new groundwater wells and local groundwater sustainability agencies is
important to achieving sustainable levels of groundwater in critically
overdrafted basins; and
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WHEREAS the duration of the drought, especially following a multiyear
drought that abated only five years ago, underscores the need for California to
redouble near-, medium-, and long-term efforts to adapt its water management
and delivery systems to a chang ing climate, shifting precipitation patterns, and
water scarcity; and
WHEREAS the most consequential, immediate action Californians can take
to extend available supplies is to voluntarily reduce their water use by
15 percent from their 2020 levels by implementing the commonsense measures
identified in operative paragraph 1 of Executive Order N-10-21 (July 8, 2021 );
and
WHEREAS to protect public health and safety, it is critica l the State take
certain immediate actions without undue delay to prepare for and mitigate the
effects of the drought conditions, and under Government Code section 8571, I
find that strict compliance with various statutes and regulations specified in this
Proclamation would prevent, hinder, or delay t he mitigation of the effects of the
drought conditions.
NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California,
in accordance with the authority vested in me by the State Constitution and
statutes, including the California Emergency Services Act, and in particular,
Government Code sections 8567, 8571, and 8627, do hereby issue the following
Order to become effective immediately:
IT IS HEREBY ORDERED THAT:
1. The orders and provisions contained in my April 21, 2021, May 10, 2021,
July 8, 2021, and October 19, 2021 Proclamations remain in fu ll force
and effect, except as modified by those Proclamations and herein.
State agencies shall continue to implement all directions from those
Proclamations and accelerate implementation where feasible.
2. To help the State achieve its conservation goals and ensure sufficient
water for essential indoor and outdoor use, I call on all Californians to
strive to limit summertime water use and to use water more efficiently
indoors and out. The statewide Save Our Water conservation
campaign at SaveOurWater.com provides simple ways for Californians
to reduce water use in their everyday lives. Furthermore, I encourage
Californians to understand and track the amount of water they use
and measure their progress toward their conservation goals.
3. By May 25, .2022, the State Water Resources Control Board (Water
Board) shall consider adopting emergency regulations that include a ll
of the following:
a. A requirement that each urban water supplier, as defined in
section 10617 of the Water Code, shall submit to the Department
of Water Resources a preliminary annual water supply and
demand assessment consistent with section 10632.1 of the Water
Code no later t han June 1, 2022, and submit a fina l annual water
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supply and demand assessment to the Department of Water
Resources no later than the deadline set by section 10632.1 of
the Water Code;
b. A requirement that each urban water supplier that has
submitted a water shortage contingency plan to the
Department of Water Resources implement, at a minimum, the
shortage response actions adopted under section 10632 of the
Water Code for a shortage level of up to twenty percent (Level
2), by a date to be set by the Water Board; and
c. A requirement that each urban water supplier that has not
submitted a water shortage contingency plan to the
Department of Water Resources implement, at a minimum,
shortage response actions established by the Water Board,
which shall take into consideration model actions that the
Department of Water Resources shall develop for urban water
supplier water shortage contingency planning for Level 2, by a
date to be set by the Water Board.
To further conserve water and improve drought resiliency if the drought
lasts beyond this year, I encourage urban water suppliers to conserve
more than required by the emergency regulations described in this
paragraph and to voluntarily activate more stringent local
requirements based on a shortage level of up to thirty percent (Level
3).
4 . To promote water conservation, the Department of Water Resources
shall consult with leaders in the commercial, industrial, and institutional
sectors to develop strategies for improving water conservation,
including direct technical assistance, financial assistance, and other
approaches. By May 25, 2022, the Water Board shall consider adopting
emergency regulations defining "non-functional turf" (that is, a
definition of turf that is ornamental and not otherwise used for human
recreation purposes such as school fields, sports fields, and parks) and
banning irrigation of non-functional turf in the commercial, industrial,
and institutional sectors except as it may be required to ensure the
health of trees and other perennial non-turf plantings.
5. In order to maximize the efficient use of water and to preserve water
supplies critical to human health and safety and the environment,
Public Resources Code, Division 13 (commencing with section 21000)
and regulations adopted pursuant to that Division are hereby
suspended, with respect to the directives in paragraphs 3 and 4 of this
Order and any other projects and activities for the purpose of water
conservation to the extent necessary to address the impacts of the
drought, and any permits necessary to carry out such projects or
activities. Entities that desire to conduct activities under this suspension,
other than the directives in paragraphs 3 and 4 of this Order, shall first
request that the Secretary of the Natural Resources Agency make a
determination that the proposed activities are eligible to be
conducted under this suspension. The Secretary shall use sound
discretion in applying this Executive Order to ensure that the suspension
serves the purpose of accelerating conservation projects that are
necessary to address impacts of the drought, while at the same time
359
protecting public health and the environment. The entities
implementing these directives or conducting activities under this
suspension shall maintain on their websites a list of all activities or
approvals for which these provisions are suspended.
6. To support voluntary approaches to improve fish habitat that would
require change petitions under Water Code section 1707 and either
Water Code sections 1425 through 1432 or Water Code sections 1725
through 1732, and where the primary purpose is to improve conditions
for fish, the Water Board shall expeditiously consider petitions that add
a fish and wildlife beneficial use or point of diversion and place of
storage to improve conditions for anadromous fish. California Code of
Regulations, title 23, section 1064, subdivisions ( a) ( 1) (A) (i)-(ii) are
suspended with respect to any petition that is subject to this
paragraph.
7. To facilitate the hauling of water for domestic use by loca l
communities and domestic water users threatened with the loss of
water supply or degraded water quality resulting from drought, any
ordinance, regulation, prohibition, policy, or requirement of any kind
adopted by a public agency that prohibits the hauling of water out of
the water's basin of origin or a public agency's jurisdiction is hereby
suspended. The suspension authorized pursuant to this paragraph shall
be limited to the hauling of water by truck or bottle to be used for
human consumption, cooking, or sanitation in communities or
residences threatened with the loss of affordable safe drinking water.
Nothing in this paragraph limits any public health or safety requirement
to ensure the safety of hauled water.
8. The Water Board shall expand inspections to determine whether illegal
diversions or wasteful or unreasonable use of water are occurring and
bring enforcement actions against illegal diverters and those engaging
in the wasteful and unreasonable use of water. When access is not
granted by a property owner, the Water Board may obtain an
inspection warrant pursuant to the procedures set forth in Title 13
(commencing with section 1822.50) of Part 3 of the Code of Civil
Procedure for the purposes of conducting an inspection pursuant to
this directive.
9. To protect health, safety, and the environment during this drought
emergency, a county, city, or other public agency shall not:
a. Approve a permit for a new groundwater well or for alteration of
an existing well in a basin subject to the Sustainable
Groundwater Management Act and classified as medium-or
high-priority without first obtaining written verification from a
Groundwater Sustainability Agency managing the basin or area
of the basin where the well is proposed to be located that
groundwater extraction by the proposed well would not be
inconsistent with any sustainable groundwater management
program established in any applicable Groundwater
Sustainability Plan adopted by that Groundwater Sustainability
360
Agency and would not decrease the likelihood of achieving a
sustainability goal for the basin covered by such a plan; or
b. Issue a permit for a new groundwater well or for alteration of an
existing well without first determining that extraction of
groundwater from the proposed well is (1) not likely to interfere
with the production and functioning of existing nearby wells, and
(2) not likely to cause subsidence that would adversely impact or
damage nearby infrastructure.
This paragraph shall not apply to permits for wells that will provide less
than two acre-feet per year of groundwater for individual domestic
users, or that will exclusively provide groundwater to public water
supply systems as defined in section 116275 of the Health and Safety
Code.
10. To address household or small community drinking water shortages
dependent upon groundwater wells that have failed due to drought
conditions, the Department of Water Resources shall work with other
state agencies to investigate expedited regulatory pathways to
modify, repair, or reconstruct failed household or small community or
public supply wells, while recognizing the need to ensure the
sustainability of such wells as provided for in paragraph 9.
11. State agencies shall collaborate with tribes and federal, regiona l,
and local agencies on actions related to promoting groundwater
recharge and increasing storage.
12. To help advance groundwater recharge projects, and to
demonstrate the feasibility of projects that can use available high
water flows to recharge local groundwater while minimizing flood
risks, the Water Board and Regional Water Quality Control Boards
shall prioritize water right permits, water quality certifications, waste
discharge requirements, and conditional waivers of waste discharge
requirements to accelerate approvals for projects that enhance the
ability of a local or state agency to capture high precipitation events
for local storage or recharge, consistent with water right priorities and
protections for fish and wildlife. For the purposes of carrying out this
paragraph, Division 13 (commencing with section 21000) of the
Public Resources Code and regulations adopted pursuant to that
Division, and Chapter 3 ( commencing with section 85225) of Part 3 of
Division 35 of the Water Code and regulations adopted pursuant
thereto are hereby suspended to the extent necessary to address the
impacts of the drought. This suspension applies to (a) any actions
taken by state agencies, (b) any actions taken by local agencies
where the state agency with primary responsibility for the
implementation of the directives concurs that local action is required,
and (c) permits necessary to carry out actions under (a) or (b). The
entities implementing these directives shall maintain on their websites
a list of all activities or approvals for which these provisions are
suspended.
13 . With respect to recharge projects under either Flood-Managed
Aquifer Recharge or the Department of Water Resources Sustainable
361
Groundwater Management Grant Program occurring on open and
working lands to replenish and store water in groundwater basins that
will help mitigate groundwater conditions impacted by drought, for
any (a) actions taken by state agencies, (b) actions taken by a loca l
agency where the Department of Water Resources concurs that
local action is required, and (c) permits necessary to carry out
actions under (a) or (b), Public Resources Code, Division 13
(commencing with section 21000) and regulations adopted pursuant
to that Division are hereby suspended to the extent necessary to
address the impacts of the drought. The entities implementing these
directives shall maintain on their websites a list of all activities or
approvals for which these provisions are suspended.
14. To increase resilience of.state water supplies during prolonged
drought conditions, the Department of Water Resources shall prepare
for the potential creation and implementation of a multi-year transfer
program pilot project for the purpose of acquiring water from willing
partners and storing and conveying water to areas of need.
15. By April 15, 2022, state agencies shall submit to the Department of
Finance for my consideration proposals to mitigate the worsening
effects of severe drought, including emergency assistance to
communities and households and others facing water shortages as a
result of the drought, facilitation of groundwater recharge and
wastewater recycling, improvements in water use efficiency,
protection of fish and wildlife, mitigation of drought-related
economic or water-supply disruption, and other potential investments
to support short-and long-term drought response.
IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be
filed in the Office of the Secretary of State and that widespread publicity and
notice be given of this Order.
This Order is not intended to, and does not, create any rights or benefits,
substantive or procedural, enforceable at law or in equity, against the State of
California, its agencies, departments, entities, officers, employees, or any other
person.
IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 28th
day of March 2022.
I I
,:, .l · I'
t (.1 I
l~~-~--
GAVIN NEWSOM
Governor of California
ATTEST:
SHIRLEY N. WEBER, PH.D.
Secretary of State
362
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WHEREAS, the Governor of California has declared a drought emergency proclamation and the
City of Hermosa Beach’s (the “City”) water provider, California Water Service, has implemented Stage 2
of its Water Shortage Contingency Plan and informed customers of certain of certain water use
prohibitions; and
WHEREAS, the City enacted Chapter 8.56 of the Hermosa Beach Municipal Code in order to
increase the conservation and efficient use of potable water, maximize the use of recycled water, and
provide a drought management plan for the City; and
WHEREAS, the City further enacted Chapter 8.56 in order to reduce water consumption and
extend available water supplies in the City, minimize the effects and hardship of water shortages on the
City and the general public to the greatest extent possible, and maximize the socioeconomic and
environmental benefits associated therewith; and
WHEREAS, in order to maintain consistency with the State’s emergency proclamation, in
congruence with the City’s vision of an environmentally sustainable community, and to ensure
customers are provided a consistent message, it is appropriate and necessary that the water users
within the city increase their water conservation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH
DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Pursuant to Hermosa Beach Municipal Code Section 8.56.090, the City
Council declares a Drought Response Level 2, “Drought Critical Condition” and invokes all
provisions of Response Level 2 of Chapter 8.56 applicable to all persons using potable water.
RESOLUTION NO. 22-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DECLARING A DROUGHT CRITICAL CONDITION AND
IMPLEMENTING DROUGHT RESPONSE LEVEL 2 CONSERVATION MEASURES
PURSUANT TO HERMOSA BEACH MUNICIPAL CODE SECTION 8.56.090
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SECTION 2. This Resolution shall take effect immediately. The City Clerk shall certify to
the passage and adoption of this Resolution, shall cause the original of the same to be entered among
the original resolutions of the City Council, and shall make a minute of the passage and adoption
thereof in the minutes of the City Council meeting at which the same is passed and adopted.
PASSED, APPROVED and ADOPTED this 14th day of June, 2022.
____________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
____________________________ ____________________________
Myra Maravilla Mike Jenkins
City Clerk City Attorney
364
From:Karen Nickelson
To:City Clerk
Subject:Need Hermosa Beach Water Restrictions
Date:Tuesday, June 14, 2022 1:51:53 PM
Hello,
Regarding the drought in Southern California, will you kindly provide Hermosa Beach’s latest water
restrictions applicable to the address below?
2162 Circle Drive, Hermosa Beach, CA 90254
Please advise on:
What are the landscape watering days?
Watering times?
Watering duration?
Restrictions for residential pools?
Thank you!
Best regards,
Karen Nickelson
Level Four Business Management, LLC
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365
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0359
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
PARTICIPATION IN BEACH CITIES TRANSIT (BCT) LINE 109
AGREEMENT, WITH NO REQUIRED FINANCIAL CONTRIBUTION
FROM THE CITY FOR FISCAL YEAR 2022-2023, WITH THE CITIES
OF EL SEGUNDO, MANHATTAN BEACH AND REDONDO BEACH,
FUNDED FROM PROPOSITION A FUNDS
(Interim Community Development Director Angela Crespi)
Recommended Action:
Staff recommends City Council:
1.Approve participation for one year along with the other beach cities,with no required financial
contribution from the City for Fiscal Year 2022-2023; and
2.Direct the Mayor to sign the Agreement on behalf of the City.
Executive Summary:
The Beach Cities Transit (BCT) Line 109 provides service for a portion of former Line 439 that was
discontinued by Metro in 2006. Since that time, Hermosa Beach along with the cities of El Segundo,
Manhattan Beach, and Redondo Beach have participated in a cost-share agreement to provide
funding for BCT Line 109 operation. BCT Line 109 route runs from Redondo Beach Riviera Village to
LAX City Bus Center. The City of Redondo Beach is a municipal transit operator and annually
receives dedicated transit funds under the Formula Allocation Procedures (FAP), which incorporates
transit performance data to allocate transit funding. The Los Angeles County Metropolitan
Transportation Authority (MTA) allocates the FAP funds, consisting of dedicated Proposition A and C,
Measure R and Measure M funds, in addition to other dedicated transit funding, to the municipal
transit operators. BCT Line 109 is funded through this combination of regional FAP transit funds, fare
revenues from riders, and dedicated Proposition A Local Return Transportation Funds. Redondo
Beach estimates BCT Line 109 would be fully funded by the dedicated transit funding and other State
funds.
Background:
On July 1, 2006, Redondo Beach and Hermosa Beach entered into a Transit Service Operation
Agreement to enable BCT Line 109 to take over public transportation services for the discontinued
Los Angeles County MTA Line 439 for a two-year term. Redondo Beach and Hermosa Beach
subsequently entered into new agreements relating to Line 109 in 2008, 2010, 2011, 2012, 2013,
2015, 2017, 2019, 2020, and 2021. The 2021 Agreement is set to expire on June 30, 2022, and the
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Staff Report
REPORT 22-0359
participating cities desire to enter into a new agreement on the terms and conditions set forth in the
attached agreement.
The Agreement would be effective as of July 1, 2022 and would have a one-year term expiring on
June 30, 2023. There is not a need for City fund contribution for FY 2022-2023.
Past Council Actions
Meeting Date Description
June 22, 2021 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
May 26, 2020 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
May 28, 2019 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
June 15, 2017 Approval of participation in Beach Cities Transit (BCT) Line
109 two-year agreement
June 9, 2015 Approval of participation in Beach Cities Transit (BCT) Line
109 two-year agreement
June 25, 2013 Approval of participation in Beach Cities Transit (BCT) Line
109 two-year agreement
June 16, 2012 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
April 26, 2011 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
July 27, 2010 Approval of participation in Beach Cities Transit (BCT) Line
109 one-year agreement
November 25, 2008 Approval of participation in Beach Cities Transit (BCT) Line
109 two-year agreement
June 1, 2006 Approval of participation in Beach Cities Transit (BCT) Line
109 two-year agreement
Analysis:
BCT initially estimated the FAP fund sources would fully cover the operating expenses and costs
associated with the installation of Real-Time Information (RTI) capital equipment and systems, and
related operation expenses. Therefore, the City’s contribution for FY 2022-23 would be $0.
Coronavirus disease 2019 (COVID-19) impacted BCT services; however, as of July 2021, BCT has
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Staff Report
REPORT 22-0359
resumed regular services including late night trips. BCT also resumed front door boarding and rear
door exiting in 2021 as health orders allowed. Collection of fares is not being enforced at this time
and ridership on Line 109 continues to remain low. The ridership between July 2021 and April 2022
was 112,352, which is approximately 65 percent of pre-COVID ridership.
Staff continues to monitor ridership, and COVID-19 emergency orders by the Redondo Beach City
Manager, Los Angeles County, and the State to determine future BCT service schedules. Public
notices and all updates regarding the service modifications were provided to the beach cities
partners, posted on the Beach Cities Transit webpage and on Twitter @RedondoBeachBCT.
Redondo Beach awarded a new agreement to Transportation Concepts, Inc. on May 5, 2020 for
Fiscal Years 2020-2021 through 2022-2023 with an option to extend two years through Fiscal Year
2024-25. The new agreement with Transportation Concepts would increase service costs. However,
Redondo Beach would have reduced Compressed Natural Gas (CNG) fuel costs, due to the new
CNG fueling station that was recently installed at the Redondo Beach public works yard. While the
impacts of COVID-19 on dedicated transit funding for the next year are still being determined, BCT
would receive an allocation of the Federal Coronavirus Aid, Relief and Economic Security (CARES)
Act, and the American Rescue Plan Act for funding to assist with the funding of COVID-19 related
expenses such as operations, cleaning and supplies, and lost revenue.
BCT would fully fund the operating expenses incurred by the transit contractor, and fuel expenses.
Operating expenses are incorporated in the service hour rates and include without limitation, driver
wages, general administration and overhead, and maintenance costs. In addition, BCT awarded a
contract to GMV Syncromatics to provide Real-Time Information (RTI) services on the transit buses
and has installed Real-Time Information (RTI) capital equipment and systems, and related operation
expenses. The system has been operational since September 2020. RTI System expenses include
without limitation, capital equipment, passenger/administration interface programs, cellular and
internet hosting of RTI services and report management programs. RTI allows passengers to receive
real-time, up-to-date transit information provided by vehicle GPS tracking to predict when the next
vehicle would arrive at any given transit stop, thereby reducing wait times and the reliance on
schedules. This system improves customer service, increases customer satisfaction, and improves
visibility of transit in the community. RTI can be received through phone, website, smartphone
applications, and SMS text messaging. RTI is also available to users of Google Maps which would
include live arrival and departure times to bus stops and service alerts.
Redondo Beach continues moving forward with enhancing future public transit in the South Bay
region. Construction of the new transit center, located at 1521 Kingsdale Avenue in Redondo Beach,
is anticipated to be completed fall of this year. The transit center is planned to be operational late
2022. It would include 12 bus bays, a passenger waiting area, automated transit ticket machine,
driver operator lounge, bike facilities, and 339 parking spaces. The transit center would be a major
transit connection, served by Metro, Torrance Transit, GTrans, Lawndale Beat, and BCT. In addition,
this location is under consideration as a rail stop for the Metro Green Line Rail Extension.
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:
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REPORT 22-0359
Mobility Element
Goal 1. Complete 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.
Policy:
·1.1 Consider all modes.Require the planning,design,and construction of all modes
of travel to create safe, livable and inviting environments for all users of the system.
Goal 3. Public rights-of-way supporting a multimodal and people-oriented transportation system
that provides diversity and flexibility on how users choose to be mobile.
Policy:
·3.4 Access opportunities.Provide enhanced mobility and access opportunities for
local transportation and transit services in areas of the city with sufficient density and
intensity of uses,mix of appropriate uses,and supportive bicycle and pedestrian
network connections that can reduce vehicle trips within the city’s busiest corridors.
Fiscal Impact:
Currently, there are no funding shortfalls for the transit service, therefore Redondo Beach is not
requesting a City contribution for FY 2022-2023. Since there is no contribution required for FY 2022-
2023, there is no corresponding request to Council to appropriate Proposition A funds for BCT Line
109 in the 2022-23 Preliminary Budget for BCT Line 109.
BCT Line 109 Cost Sharing Estimates Discussion for Fiscal Year 2022-2023
The estimated annual operating cost to operate regular service for BCT Line 109 is approximately
$1,665,000. The services would be funded by Relief and Economic Security (CARES) Act,
Coronavirus Response and Relief Supplemental Appropriations Act (CRRSA), American Rescue Plan
Act (ARPA), and Proposition A Local Return Funds.
In the past BCT Line 109 budget estimates have been provided, however due to the COVID-19
impacts on service hour operations, fare revenues, and FAP and Local Return Funding, the FY 2022-
23 budget estimates are uncertain. While BCT would also receive Federal CARES Act funding, the
fund distribution estimates have not been finalized by MTA at the time of this report. Redondo Beach
would provide an estimated budget when the information becomes available.
Agreement Request
Request Amount FY 2022-23 Budget Dept. Account #Total Contract Amount
$0 145-3412-4251 $0
Attachments:
1.Transit Service Operation Agreement for Fiscal Year 2022-2023
Respectfully Submitted by: Carlos Luis, Senior Planner
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REPORT 22-0359
Concur: Angela Crespi, Interim Community Development Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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1
TRANSIT SERVICE OPERATION AGREEMENT
BETWEEN THE CITY OF REDONDO BEACH AND
THE CITY OF HERMOSA BEACH
THIS TRANSIT SERVICE OPERATION AGREEMENT (this “Agreement”) is entered
into by and between the City of Redondo Beach (“Redondo Beach”), on behalf of Beach
Cities Transit (“BCT”), which is a division of Redondo Beach, and the City of Hermosa
Beach (“Hermosa Beach”).
RECITALS
A. WHEREAS, on July 1, 2006, Redondo Beach and Hermosa Beach entered into that
certain Transit Service Operation Agreement (“First Agreement”) to enable BCT Line
109 as described in Attachment A to take over public transportation services for the
discontinued LACMTA Line 439 for a two (2) year term.
B. WHEREAS, Redondo Beach and Hermosa Beach subsequently entered into new
agreements relating to Line 109 in 2008, 2010, 2011, 2012, 2013, 2015, 2017, 2019,
2020, and 2021 (the "2021 Agreement").
C. WHEREAS, the 2021 Agreement expires on June 30, 2022, and the parties desire to
enter into a new agreement on the terms and conditions set forth below.
NOW THEREFORE, IN CONSIDERATION OF THE MUTUAL PROMISES
CONTAINED HEREIN, THE PARTIES AGREE AS FOLLOWS:
1. TERM
This Agreement shall be effective as of July 1, 2022, and shall have a one (1) year term
expiring on June 30, 2023. Hermosa Beach acknowledges that an agreement in similar
form to this Agreement or an amendment may be negotiated for continued Line 109
service beyond June 30, 2023. In the event Hermosa Beach intends to renew this
Agreement, Hermosa Beach shall notify Redondo Beach of its intent to renew at least
182 days prior to the expiration of this term.
2. SERVICE DESCRIPTION
A. Redondo Beach shall operate Line 109 consistent with the maps shown in
Attachment A, which is attached hereto and by this reference incorporated herein
("Line 109" or the "Service").
B. Redondo Beach shall operate Line 109 on the days of the week, service times and
days, and frequencies of service equal to or better than that which was operated by
BCT immediately prior to the effective date of this Agreement. The service
schedules for Line 109, as illustrated in Attachment B is attached hereto and by
this reference incorporated herein.
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C. Redondo Beach may adjust the route and schedule of Line 109; however, any
changes or reductions to the Service in excess of 10% shall be brought to Hermosa
Beach in writing for review and comment prior to implementation.
D. Redondo Beach reserves its rights, at its sole discretion, to enter into contracts for
Line 109 service with any other provider of its choice at any time without the
approval of Hermosa Beach. Redondo Beach shall be responsible for any and all
aspects of administration of the service contract, and shall assure that the contract
includes provisions pertaining to insurance, age, maintenance and operation of
vehicles, driver qualifications and other similar provisions typical of an agreement
of that kind.
E. Redondo Beach shall base the percentage of cost for Line 109 on the route service
mile calculations, as illustrated in the attached Attachment C.
3. PASSENGER FARES
Redondo Beach may charge fares for the Service consistent with their existing fixed-
route service. Redondo Beach will accept interagency transfers with adjacent transit
operators and participate in the EZ Pass Program. Redondo Beach shall retain all
farebox revenues. BCT Line 109 passenger fare revenues shall be used to offset
operation expenses.
4. FUNDING
A. For costs associated with the operation of Line 109, Hermosa Beach shall pay
Redondo Beach in accordance with this Section. Hermosa Beach shall not pay
Redondo Beach for capital costs nor shall Hermosa Beach provide equipment to
operate the Service.
B. FY 2022-23: Funding from Hermosa Beach shall be $0 for fiscal year 2022-23.
Service operating expenses are incorporated in the service hour rates and include
without limitation, driver wages, general administration and overhead, and
maintenance costs. The calculation for these estimated costs shall be in accordance
with the Management Agreement for the Operation and Maintenance of Beach
Cities Transit Fixed Route Transit Between the City of Redondo Beach and Parking
Concepts, Inc. dba Transportation Concepts. The estimated revenues shall be
based on the LACMTA funding formula and the prior fiscal year’s fare revenues
for Line 109.
Real Time Information (“RTI”) system operating expenses include without
limitation, capital equipment, passenger/administration interface programs,
cellular and internet hosting of RTI services and report management programs.
C. Redondo Beach is responsible for all marketing and promotion of the service.
Notwithstanding the foregoing, Hermosa Beach may advertise at its sole expense,
but any reference to BCT must be approved in writing by Redondo Beach prior to
such reference. Only the BCT logo may be used to advertise or market the service.
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D. On a quarterly basis, BCT will meet with Hermosa Beach to develop additional
marketing strategies directed towards increasing BCT Line 109 ridership.
Hermosa Beach shall provide assistance for public outreach and information to
target Hermosa Beach residents and non-resident community members.
5. REPORTING/INVOICING
A. Redondo Beach shall report to Hermosa Beach on a quarterly basis, all of the
following data for the Line 109 Service:
(1) Passengers carried
(2) Revenue hours operated
(3) Revenue miles operated
(4) Total operating costs, including service operating expenses and
RTI capital and operating expenses
B. Redondo Beach shall submit said report to the Hermosa Beach City Manager in
writing within fifteen (15) days after the end of each reporting quarter.
C. Redondo Beach shall submit quarterly reports to the Hermosa Beach City Manager.
D. Redondo Beach shall incorporate Line 109 data into its Federal Transit
Administration’s National Transit Data (NTD) annual report for the entire BCT
fixed route transportation system. Redondo Beach shall provide to Hermosa Beach
annual NTD random sampling data which provides the statistics to estimate the
number of passengers boarding and alighting by stop in Hermosa Beach, and the
total estimated Hermosa Beach passengers. Redondo Beach shall be responsible
for any and all aspects of administration of the service contract, and shall include
provisions pertaining to insurance.
E. Hermosa Beach retains the right to audit the BCT’s records of Line 109 Service,
and to periodically monitor the Service.
F. Redondo Beach shall schedule quarterly joint meetings with the partnering cities of
El Segundo, Hermosa Beach, and Manhattan Beach. Redondo Beach will provide
a quarterly update of Line 109 services, and discuss coordinated marketing and
public outreach efforts and operating and financing issues that affect BCT services.
6. INSPECTION OF RECORDS
BCT records relevant to this Agreement shall be available for inspection by Hermosa
Beach at all reasonable times for a period of at least three (3) years for each year or
after the termination date, whichever comes first.
7. NON-DISCRIMINATION
No person shall on the grounds of race, color, religion, national origin, ancestry, age,
sex, physical or mental disability, be excluded from participation in, or be subject to
discrimination in the operation of the Line 109 Service.
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8. COORDINATION
A. Redondo Beach shall coordinate its BCT services, to the extent practical, so that
passengers transferring between transit operators will have minimal waiting times.
This coordination will require transit agencies to communicate with each other as
many weeks as possible in advance of any planned schedule change to the services
that may affect passenger transfers.
B. The Hermosa Beach Project Manager for this project shall be the City Manager or
his/her designee. BCT coordinator for this project shall be the Community Services
Director or his/her designee.
9. WAIVER OF BREACH
The waiver of each party of any breach of any provision of this Agreement shall not
operate or be construed as a waiver of any subsequent breach of that same or any other
provision.
10. NOTICES
A. All notices, requests, demands, or other communications under this Agreement
shall be in writing. Notice shall be given as follows:
(1) Personal Delivery. Personally delivered to the recipient. Notice is
effective on delivery.
(2) First Class Mail. First class to the last address of the recipient
known to the party giving notice. Notice is effective three mail
delivery days after deposit in a United States Postal Service office
or mailbox.
(3) Certified Mail. Certified mail with return receipt requested. Notice
is effective on receipt, if delivery is confirmed by a return receipt.
(4) Overnight Delivery. Delivered by an overnight delivery service,
charges prepaid or charged to the sender’s account. Notice is
effective on delivery, if delivery is confirmed by the delivery
service.
(5) Email. Sent by email to the last email address of the recipient
known to the party giving notice. Notice is effective upon receipt.
Any notice given by email shall be deemed received on the next
business day if it is received after 5:00 p.m. (recipient’s time) or
on a non-business day.
Addresses for purpose of giving notice shall be as follows:
Beach Cities Transit: City of Redondo Beach
Transit Operations and Transportation Facilities Manager
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Attention: Line 109
415 Diamond Street
Redondo Beach, CA 90277
Email: joyce.rooney@redondo.org
With a copy to: City of Redondo Beach
The City Clerk’s Office
415 Diamond Street
Redondo Beach, CA 90277-2836
Email: cityclerk@redondo.org
City of Hermosa Beach: City of Hermosa Beach
Community Development Director
1315 Valley Drive
Hermosa Beach, CA 90254-3885
Attention: Angela Crespi
Email: acrespi@hermosabeach.gov
With a copy to: City Clerk
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254-3885
Email: cityclerk@hermosabeach.gov
B. Any correctly addressed notice that is refused, unclaimed, or undeliverable because
of an act or omission of the party to be notified, shall be deemed effective as of the
first date the notice was refused, unclaimed or deemed undeliverable by the postal
authorities, messenger or overnight delivery service.
C. Either party may change its address or email address number by giving the other
party written notice of the change.
11. SEVERABILITY
Should any part, term or provision of this Agreement or any document required herein
to be executed be declared invalid, void or unenforceable, all remaining parts, terms
and provisions hereof shall remain in full force and effect and shall in no way be
invalidated, impaired or affected thereby.
12. INTEGRATION; AMENDMENT
This Agreement represents the entire understanding of Hermosa Beach and Redondo
Beach as to those matters contained in it. No prior oral or written understanding shall
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be of any force or effect with respect to the subject matter hereof. The Agreement may
not be modified or altered except by written amendment executed by both parties.
13. INTERPRETATION
The terms of this Agreement should be construed in accordance with the meaning of
the language used and should not be construed for or against either party by reason of
the authorship of this Agreement or any other rule of construction that might otherwise
apply.
14. GOVERNING LAW; JURISDICTION
This Agreement will be administered and interpreted under the laws of the State of
California. Jurisdiction of any litigation arising from the Agreement will be in Los
Angeles County, California.
15. COMPLIANCE WITH STATUTES AND REGULATIONS
BCT will be knowledgeable of and will comply with all applicable federal, state, county
and city statutes, rules, regulations, ordinances and orders.
16. NON-LIABILITY OF CITIES
No officer or employee of either city shall be personally liable to the other, in the event
of any default or breach thereunder.
17. INDEMNIFICATION
Each party hereby agrees to defend, protect, indemnify and hold harmless the other
party, its officers, employees, volunteers, agents, elected and appointed officials, and
members of boards and commissions from and against any and all loss, damages, costs,
expenses, liabilities, claims, demands, causes of action, proceedings, and judgments,
including reasonable attorney’s fees, expert fees and costs of suit arising directly or
indirectly from or in any manner related to or in connection with or caused by the
performance or failure of the party, its agents, servants or employees to perform the
services required of the party’s employees under the terms of this Agreement.
18. AUTHORITY
Each party warrants that the individuals who have signed this Agreement have the legal
power, right and authority to enter into and execute this Agreement on behalf of each
respective party.
SIGNATURES FOLLOW ON NEXT PAGE
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IN WITNESS WHEREOF, the parties have executed this Agreement in Redondo Beach,
California, as of this ____ day of ________, 2022.
CITY OF REDONDO BEACH CITY OF HERMOSA BEACH
By: ______________________________ By: ______________________________
William C. Brand, Mayor Michael Detoy, Mayor
APPROVED AS TO FORM: APPROVED AS TO FORM:
______________________________ ______________________________
Michael W. Webb, City Attorney Michael Jenkins, City Attorney
ATTEST: ATTEST:
______________________________ ______________________________
Eleanor Manzano, City Clerk Myra Maravilla, City Clerk
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Attachment A: Line 109 Map
378
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Attachment B: BCT Line 109 Time Schedule
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Attachment C
Beach Cities Transit Line 109
Route Service Mile Calculations by City
Route Miles NB Miles SB Miles Average
Miles Per
City
Allocation
Formula %
Redondo Beach & Los Angeles 5.3 6.9 6.1 34.95%
Hermosa Beach 2.2 1.6 1.90 10.89%
Manhattan Beach 3.4 2.2 2.8 16.05%
El Segundo 7.7 5.6 6.65 38.11%
Total Miles 18.6 16.3 17.45 100.00%
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381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0371
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
ADOPTION OF FISCAL YEAR 2022-23 BUDGET
(Finance Director Viki Copeland)
Recommended Action:
Staff recommends City Council:
1. Receive public testimony regarding the Fiscal Year 2022-23 Budget (Attachment 1);
2. Approve contracts for services contained in the table herein;
3. Approve the revisions to the Preliminary Budget as shown on pages 5-6; and
4. Adopt a Resolution approving the 2022-23 Budget as presented in Exhibit A (Attachment 2).
Executive Summary:
Staff recommends a transfer of $1,313,107 from the American Rescue Plan Act Fund to the General
Fund to balance the budget and the use of unspent funds of $3,232,145 from the prior fiscal year
towards funding goals established in the City’s Financial Policies and Capital Improvement Projects
(CIPs). The end result is a 2022-23 budget that includes: a Contingency (Rainy Day Fund) of
$7,307,026, or 16 percent of appropriations per the City’s adopted financial policy; restores staffing
levels to pre-pandemic levels; and adds additional essential staff, supplemental requests, and capital
projects that would continue to move the City forward towards its established goals.
Background:
On April 21, 2022, a study session was held for the 2022-23 Capital Improvement Program to review
the 50 projects and studies proposed for the upcoming fiscal year. The 2022-23 Capital Improvement
Program totals $23.5 million, which includes $12.9 million in estimated carryover funds from 2021-22.
An additional four Public Works staff are included in the budget and would be funded from CIP funds
in order to advance the existing backlog of CIP projects, and new project requests.
The City utilized an interactive online budget document for the second year. A budget workshop was
held on June 2, 2022. Responses to Councilmember questions and requests may be found in the
analysis section. A summary of the General Fund is also provided (Attachment 3 ).
Past City Council Actions Meeting Date Description April 21, 2022 City Council held the 2022–23 Capital Improvement
Program Study Session
June 2, 2022 City Council held the 2022–23 Budget Workshop
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Past City Council Actions Meeting Date Description April 21, 2022 City Council held the 2022–23 Capital Improvement
Program Study Session
June 2, 2022 City Council held the 2022–23 Budget Workshop
Analysis:
The chart below shows the steps taken to balance the budget:
Revenue 46,454,415
Transfers In 419,382
Appropriations (44,884,724)
Transfers Out (1,385,860)
Changes to Fund Balance (273,686)
Total General Fund Balance Projected for 6/30/23 329,527
Changes in Appropriations
Supplemental Requests (626,582)
Position Requests (319,038)
Change in Fund Balance Reserves
Changes to Contingency Balances (822,014)
Use General Plan Maintenance Fees 125,000
Transfer In
American Rescue Plan Act Fund 1,313,107
Balance Projected for 6/30/2023 0
Recommended Use of 2020-21 Unspent Funds
Unassign 2020-21 Unused Fund Balance 5,834,252
Increase Compensated Absences to 25% Goal (18,362)
Transfer to Insurance Fund for Goal of $3 Million Balance (278,031)
Transfer to Equipment Replacement Fund for Funding Goal (333,645)
Transfer to Capital Improvement Fund (2,602,107)
Assign in General Fund for 2023-24 Budget (2,602,107)
Remaining 2020-21 Unspent Funds 0
General Fund Summary of Budget Balancing Actions for 2022-23
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REPORT 22-0371
Revenue 46,454,415
Transfers In 419,382
Appropriations (44,884,724)
Transfers Out (1,385,860)
Changes to Fund Balance (273,686)
Total General Fund Balance Projected for 6/30/23 329,527
Changes in Appropriations
Supplemental Requests (626,582)
Position Requests (319,038)
Change in Fund Balance Reserves
Changes to Contingency Balances (822,014)
Use General Plan Maintenance Fees 125,000
Transfer In
American Rescue Plan Act Fund 1,313,107
Balance Projected for 6/30/2023 0
Recommended Use of 2020-21 Unspent Funds
Unassign 2020-21 Unused Fund Balance 5,834,252
Increase Compensated Absences to 25% Goal (18,362)
Transfer to Insurance Fund for Goal of $3 Million Balance (278,031)
Transfer to Equipment Replacement Fund for Funding Goal (333,645)
Transfer to Capital Improvement Fund (2,602,107)
Assign in General Fund for 2023-24 Budget (2,602,107)
Remaining 2020-21 Unspent Funds 0
General Fund Summary of Budget Balancing Actions for 2022-23
Staff recommends City Council approve the following actions to balance the 2022-23 Budget as
shown in Attachment 3, Exhibit A.
·Adopt estimated revenue of $46,454,415 and revised transfers in of $1,732,489 that includesCity of Hermosa Beach Printed on 6/9/2022Page 3 of 9
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REPORT 22-0371
·Adopt estimated revenue of $46,454,415 and revised transfers in of $1,732,489 that includes
a one-time transfer as outlined below.
·Transfer $1,313,107 from the American Rescue Plan Act (ARPA)Fund to the General Fund.At
a high level, American Rescue Plan Act funds have the following eligible uses:
1.COVID-19 or a negative economic impact;
2.Premium pay for eligible workers;
3.Government Services to the extent of the loss of revenue; or
4.Investments in water, sewer, and broadband infrastructure.
The proposed use of $1.3 million in the 2022-23 Budget would be used for the provision of
government services to the extent of the reduction in revenue due to the COVID-19 public health
emergency, with falls under eligible use category three above. This would leave $997,770 for future
use. The covered period for eligible expenditures is March 21, 2021 to December 31, 2024.
Adopt revised appropriations of $45,830,343 and transfers out of $4,599,643, which includes the
following staffing recommendations and supplemental requests:
·Add Essential Supplemental Requests of $626,582; and
·Add Position Requests/Frozen Positions of $319,038.
As a part of the Midyear Budget Review on March 8,2022,staff recommended assigning the unspent
General Funds from 2020-21 of $5,834,252 for the 2022-23 Budget process,at which time 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.
Staff recommends that these unspent funds of $3,232,145 remaining from the 2020-21 Budget be
used to meet funding goals in accordance with the City’s established Financial Policies and provide
funding for current and future CIPs, as described in detail below:
·$18,362 to increase the assigned Compensated Absences balance to the funding goal of 25
percent of the accrued liability for employee vacation, sick, and compensatory time;
·$278,031 to increase the Insurance Fund’s net position to the funding goal of $3 million for
claims above recorded claims liabilities or catastrophic losses;
·$333,645 to increase the Equipment Replacement Fund balance to the funding goal,which is
to maintain net position equal to the accumulated amount calculated on the equipment
replacement schedules for all equipment based on replacement cost and useful life; and
·$2,602,107 to the Capital Projects Fund to fund 2022-23 Capital Improvement Projects (CIPs)
and future CIP funding needs.
The remaining $2,602,107 from FY2020-21 would be reserved for use in the 2023-24 Budget.
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REPORT 22-0371
Adopt the changes to fund balance of -$2,243,082 as outlined in Attachment 3.
City Council Follow-up Items from June 2, 2022 Budget Workshop
The following items are provided as follow-up to questions or requests at the Budget Workshop on
June 2, 2022:
1.Cost of the new Ford F150 EV Lightning for the Police Department in the 2022 -2023 Budget
as compared to the Ford F150 EV for Community Services approved for purchase at the May
24, 2022 Council Meeting.
The Police Department requested two Ford F150 Lightning vehicles for specific needs.
One vehicle will be used for Patrol functions,including beach patrol.This vehicle
requires the long-range battery and upgraded equipment that includes vehicle
accessories, lighting, sirens, prisoner cage, and paint/badging.
The second vehicle will be used for Animal Control Services and the basic model allows
employees to conduct their business as required.The equipment requirements for the
Animal Control truck are minimal as well.
Both estimates are based off of vehicle factory quotes and cost estimates for needed
equipment and installation.
2.More information requested related to new parking meters and the pay by app software.
Staff is currently finalizing the pay by app RFP and will negotiate a contract with the
vendor in the near future.The pay by app integration will overlay with our current
metering systems.Without any unforeseen delays,staff anticipates a contract being
presented to City Council in approximately one month.Because Hermosa Beach is
primarily within the Coastal Zone,a cash payment option for meters is strongly
recommended to ensure equal access for all community members.
Police Chief Paul LeBaron will be prepared to address any questions.
Revisions to Preliminary Budget
The following revisions to the Preliminary Budget are recommended and reflected in the budget
summary included with the budget resolution attachment. Other formatting and grammatical
corrections would be made in the Adopted Budget that do not affect the amounts in the budget
summary.
Equipment Replacement Fund
·Appropriate $69,118 for the purchase of the copiers as indicated in the Contracts for Services
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·Appropriate $69,118 for the purchase of the copiers as indicated in the Contracts for Services
section that follows.The copiers were budgeted as leases originally and are now changed to
purchases which are more advantageous.
·Reduce the Police Department’s Equipment less than $1,000 account,account 715-2101-
5401, by $49,831 due to an amount erroneously included in the 2022-23 Department Request;
·Increase the Community Resources Equipment less than $1,000 account,account 715-4601-
5401,by $588 for an item from the Communications Equipment Replacement Schedule
excluded in error.
The three changes noted above will result in a reduction in the total Equipment Replacement Fund
appropriations of $19,875.
Contracts for Services
The following contracts are extensions of existing contracts except for replacement of the copiers.
Rather than submitting them individually on future agendas, they are included here for approval.
Comments regarding staff’s satisfaction with the current providers are included. The contracts are on
file for review in the Finance Department.
DEPARTMENT/CONTRACTOR SERVICE PROVIDED TERM/AMOUNT
City Clerk
Granicus, LLC
7/1/22–6/30/23 - $77,415
Granicus provides managed services for meeting and agenda
management, video streaming, citizen participation, and closed
captioning. They have met the expectations of the contract.
The contract was executed June 11, 2019. This amendment
will extend the agreement for one additional year to allow the
department to explore what other software options exist.
Los Angeles Society For The
Prevention of Cruelty To Animals
(SPCALA)
SPCALA provides animal sheltering and disposal services for
Community Services. They have meet the expectation of the
contract. The initial contract was executed September 24,
2014 and the terms of service have been amended annually.
7/1/22–8/31/2023 - $12,300
Finance
Gruber and Lopez, Inc.
Gruber and Lopez, Inc. provides independent audit services for
the Finance Department. They have met the expectations of
the contract. The initial contract was executed May 28, 2019
for three years. The contract has an option for an additional two
years.
7/1/22–6/30/2024 - $32,960 for 2022-23
Police Department
City Manager
Canon Financial Services, Inc.
(Equipment) and Canon Solutions
America, Inc. (Maintenance)
Canon Financial Services Inc. and Canon Solutions America
provides equipment and maintenance for multifunction copiers.
The City purchased copiers in 2013 which are outdated and
replacement parts are no longer available for these machines.
Canon has met the expectations of the maintenance contract.
Staff recommends a purchase agreement. Utilizing a
cooperative piggy back contract (OMNIA - formerly National
IPA) eliminates the need for a RFP which creates a cost
savings. Equipment purchase; $86,906, estimated 60 month
maintenance agreement: $57,998 (approximately $15,168
annually).
7/1/2022–6/30/23 - $102,074 for 2022-23
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REPORT 22-0371
DEPARTMENT/CONTRACTOR SERVICE PROVIDED TERM/AMOUNT
City Clerk
Granicus, LLC
7/1/22–6/30/23 - $77,415
Granicus provides managed services for meeting and agenda
management, video streaming, citizen participation, and closed
captioning. They have met the expectations of the contract.
The contract was executed June 11, 2019. This amendment
will extend the agreement for one additional year to allow the
department to explore what other software options exist.
Los Angeles Society For The
Prevention of Cruelty To Animals
(SPCALA)
SPCALA provides animal sheltering and disposal services for
Community Services. They have meet the expectation of the
contract. The initial contract was executed September 24,
2014 and the terms of service have been amended annually.
7/1/22–8/31/2023 - $12,300
Finance
Gruber and Lopez, Inc.
Gruber and Lopez, Inc. provides independent audit services for
the Finance Department. They have met the expectations of
the contract. The initial contract was executed May 28, 2019
for three years. The contract has an option for an additional two
years.
7/1/22–6/30/2024 - $32,960 for 2022-23
Police Department
City Manager
Canon Financial Services, Inc.
(Equipment) and Canon Solutions
America, Inc. (Maintenance)
Canon Financial Services Inc. and Canon Solutions America
provides equipment and maintenance for multifunction copiers.
The City purchased copiers in 2013 which are outdated and
replacement parts are no longer available for these machines.
Canon has met the expectations of the maintenance contract.
Staff recommends a purchase agreement. Utilizing a
cooperative piggy back contract (OMNIA - formerly National
IPA) eliminates the need for a RFP which creates a cost
savings. Equipment purchase; $86,906, estimated 60 month
maintenance agreement: $57,998 (approximately $15,168
annually).
7/1/2022–6/30/23 - $102,074 for 2022-23
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Staff Report
REPORT 22-0371
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.
Other relevant General Plan policies are listed below:
Governance Element
Goal 1. A high degree of transparency and integrity in the decision-making process.
Policies:
·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 Element
Goal 1. First class, well maintained, and safe recreational facilities, parks and open spaces.
Policy:
·1.1 Facility upgrades.Improve and update park and open space facilities on a regular
basis.
Goal 2. Abundant parks, open space, and recreational facilities to serve the community.
Policy:
·2.6 Investment and maintenance.Prioritize the investment and maintenance of existing
facilities prior to development and expansion of new facilities.
Infrastructure Element
Goal 1. Infrastructure systems are functional, safe, and well maintained.
Policy:
·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 Element
Goal 5. High quality police and fire protection services provided to residents and visitors.
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Staff Report
REPORT 22-0371
Policy:
·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 continue to build upon the City’s recovery
efforts and reflects investments in the community through the core resources of staff, infrastructure,
and systems. The 2022-23 Budget, including all funds, estimates revenue of $60,376,490 and
appropriations of $78,873,082, of which $23,452,610 is for Capital Improvement Projects with
$12,853,433 carried forward from prior year Capital Improvement Projects.
Attachments:
1. Link to 2023-23 Preliminary Budget
2. Resolution of Budget Adoption, including Exhibit A-Budget Summary
3. Fiscal Year 2022-23 General Fund Summary
4. Link to April 21, 2022 CIP Study Session Staff Report
5. Link to June 2, 2022 Budget Workshop Staff Report
Respectfully Submitted by : Viki Copeland, Finance Director
Legal Review : Mike Jenkins, City Attorney
Approved : Suja Lowenthal, City Manager
City of Hermosa Beach Printed on 6/9/2022Page 9 of 9
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RESOLUTION NO. 22-xxxx
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA ADOPTING THE BUDGET FOR THE FISCAL YEAR 2022–2023
WHEREAS, a budget for the fiscal year 2022–23 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 2022–23 Fiscal Year as presented in the documents entitled “City of Hermosa Beach
Budget Summary 2022–23”, 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 14th day of June 2022.
________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
________________________________ _______________________________
City Clerk City Attorney
1 Attachment 1 411
Major Fund
LIGHTING
GENERAL LANDSCAPING STATE GAS
FUND FUND TAX FUND
001 105 115
ESTIMATED REVENUE
Taxes $34,363,844 $461,300 $0
Licenses/Permits $1,408,690 $0 $0
Fines/Forfeitures $1,753,010 $0 $0
Use of Money/Property $988,228 $1,236 $5,932
Intergovernmental/State $146,636 $0 $1,013,388
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $7,686,027 $0 $0
Other Revenue $107,980 $0 $0
TOTAL ESTIMATED REVENUE $46,454,415 $462,536 $1,019,320
INTERFUND TRANSFERS IN $1,732,489 $240,835 $0
ESTIMATED FUNDS AVAILABLE $48,186,904 $703,371 $1,019,320
FUND BALANCE
7/1/22 $15,942,518 $92,097 $849,882
TOTAL FUNDS AVAILABLE $64,129,422 $795,468 $1,869,202
APPROPRIATIONS
Operating Budget $45,668,912 $784,414 $50,000
Capital Outlay $121,020 $0 $0
Capital Improvements- PY $40,411 $0 $34,581
Capital Improvements $0 $0 1,340,419
TOTAL APPROPRIATIONS $45,830,343 $784,414 $1,425,000
INTERFUND TRANSFERS OUT $4,599,643 $11,054 $357,865
TOTAL APPROPRIATIONS/TRANSFERS OUT $50,429,986 $795,468 $1,782,865
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $13,699,436 (a)$0 $86,337
(a) CLASSIFICATIONS OF FUND BALANCE:
Restricted Previous Balance Current Balance
General Plan Maintenance Fee $39,586 $19,486
Verizon PEG Grant $98,675 $138,655
CASP Fees $52,407 $62,121
Marquee Donation $50,000 $50,000
Committed In Lieu Fee/ Parking Facility $144,500 $202,300
AssignedContingencies $6,870,858 $7,307,026
Unspecified Contingencies $0 $730,696
20-21 Midyear Balance $0 $0
20-21 Year End Balance $5,834,252 $2,602,107
Retirement Rate Stabilization $1,021,575 $1,021,575
Retirement Trust $829,060 $829,060
Compensated Absences $267,950 $286,312
Prop A Fund Exchange- Engineer Funding $323,774 $190,321
$369,470 $259,777Reappropriations$0 0
CIP Carry Forward $40,411 $0$15,942,518 $13,699,436
Available Fund Balance 6/30/23 $0 $0 $86,337
21-22 Prop A Fund Exchange- Engineer
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
Exhibit A
412
PROP A
AB 939 OPEN SPACE TYCO
FUND FUND FUND
117 121 122
ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $1,523 $0 $353,300
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $30,000 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $62,000 $0 $0
Other Revenue $0 $0 $0
TOTAL ESTIMATED REVENUE $63,523 $30,000 $353,300
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $63,523 $30,000 $353,300
FUND BALANCE
7/1/22 $238,369 $236,905 $2,096,927
TOTAL FUNDS AVAILABLE $301,892 $266,905 $2,450,227
APPROPRIATIONS
Operating Budget $3,475 $0 $0
Capital Outlay $0 $0 $0
Capital Improvements- PY $0 $0 $1,611,856
Capital Improvements $0 $0 $830,000
TOTAL APPROPRIATIONS $3,475 $0 $2,441,856
INTERFUND TRANSFERS OUT $0 $44,963 $1,590
TOTAL APPROPRIATIONS/TRANSFERS OUT $3,475 $44,963 $2,443,446
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $298,417 $221,942 $6,781
Available Fund Balance 6/30/23 $298,417 $221,942 $6,781
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
413
PARK/BAYVIEW DRIVE
RECREATION DISTRICT ADMIN
FACILITY TAX EXPENSE
FUND FUND
125 135
ESTIMATED REVENUE
Taxes $57,526 $0
Licenses/Permits $0 $0
Fines/Forfeitures $0 $0
Use of Money/Property $3,623 $44
Intergovernmental/State $0 $0
Intergovernmental/County $0 $0
Intergovernmental/Federal $0 $0
Current Service Charges $0 $0
Other Revenue $78,616 $5,000
TOTAL ESTIMATED REVENUE $139,765 $5,044
INTERFUND TRANSFERS IN $0 $0
ESTIMATED FUNDS AVAILABLE $139,765 $5,044
FUND BALANCE
7/1/22 $356,598 $5,463
TOTAL FUNDS AVAILABLE $496,363 $10,507
APPROPRIATIONS
Operating Budget $0 $1,900
Capital Outlay $0 $0
Capital Improvements- PY $319,690 $0
Capital Improvements $100,000 $0
TOTAL APPROPRIATIONS $419,690 $1,900
INTERFUND TRANSFERS OUT $0 $3,000
TOTAL APPROPRIATIONS/TRANSFERS OUT $419,690 $4,900
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $76,673 $5,607
Available Fund Balance 6/30/23 $76,673 $5,607
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
414
BEACH DRIVE DISTRICT
ADMINISTRATIVE COMMUNITY / DEV PROPOSITION PROPOSITION
EXPENSE BLOCK GRANT A C
FUND FUND FUND
139 140 145 146
ESTIMATED REVENUE
Taxes $0 $0 $474,542 $393,620
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $35 $0 $3,938 $12,548
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $135,008 $0 $0
Current Service Charges $0 $0 $708 $0
Other Revenue $3,950 $0 $0 $0
TOTAL ESTIMATED REVENUE $3,985 $135,008 $479,188 $406,168
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $3,985 $135,008 $479,188 $406,168
FUND BALANCE
7/1/22 $3,793 $3,192 $377,849 $1,533,160
TOTAL FUNDS AVAILABLE $7,778 $138,200 $857,037 $1,939,328
APPROPRIATIONS
Operating Budget $1,500 $0 $119,151 $250,000
Capital Outlay $0 $0 $0 $0
Capital Improvements- PY $0 $135,008 $0 $1,347,205
Capital Improvements $0 $0 $0 $250,569
TOTAL APPROPRIATIONS $1,500 $135,008 $119,151 $1,847,774
INTERFUND TRANSFERS OUT $2,500 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $4,000 $135,008 $119,151 $1,847,774
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $3,778 $3,192 $737,886 $91,554
Available Fund Balance 6/30/23 $3,778 $3,192 $737,886 $91,554
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
415
MEASURE R MEASURE M MEASURE W GRANT
FUND FUND FUND FUND
147 148 149 150
ESTIMATED REVENUE
Taxes $295,215 $334,577 $157,832 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $3,837 $3,600 $376 $0
Intergovernmental/State $0 $0 $0 $229,215
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $278,363
Current Service Charges $0 $0 $0 $0
Other Revenue $0 $0 $0 $214,355
TOTAL ESTIMATED REVENUE $299,052 $338,177 $158,208 $721,933
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $299,052 $338,177 $158,208 $721,933
FUND BALANCE
7/1/22 $385,888 $500,103 $177,614 $434,108
TOTAL FUNDS AVAILABLE $684,940 $838,280 $335,822 $1,156,041
APPROPRIATIONS
Operating Budget $0 $0 $0 $98,137
Capital Outlay $0 $0 $0 $0
Capital Improvements- PY $262,226 $90,600 $159,500 $433,650
Capital Improvements $370,000 $739,400 $170,000 $545,100
TOTAL APPROPRIATIONS $632,226 $830,000 $329,500 $1,076,887
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $632,226 $830,000 $329,500 $1,076,887
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $52,714 $8,280 $6,322 $79,154
Available Fund Balance 6/30/23 $52,714 $8,280 $6,322 $79,154
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
416
2022-23
SUPPLEMENTAL
AIR QUALITY LAW ENFORCEMENT AMERICAN RESCUE
IMPROVEMENT SERVICES FEMA CARES ACT PLAN ACT
FUND FUND FUND FUND FUND
152 153 157 158 159
ESTIMATED REVENUE
Taxes $0 $127,424 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0 $0
Use of Money/Property $626 $3,153 $0 $0 $0
Intergovernmental/State $25,000 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0 $2,310,877
Current Service Charges $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $25,626 $130,577 $0 $0 $2,310,877
INTERFUND TRANSFERS IN $0 $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $25,626 $130,577 $0 $0 $2,310,877
FUND BALANCE
7/1/22 $38,328 $408,277 ($960,100)$295,363 $0
TOTAL FUNDS AVAILABLE $63,954 $538,854 ($960,100)$295,363 $2,310,877
APPROPRIATIONS
Operating Budget $5,000 $121,598 $0 $0 $0
Capital Outlay $50,000 $61,000 $0 $0 $0
Capital Improvements- PY $0 0 $0 $0 $0
Capital Improvements $0 0 $0 $0 $0
TOTAL APPROPRIATIONS $55,000 $182,598 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0 $1,313,107
TOTAL APPROPRIATIONS/TRANSFERS OUT $55,000 $182,598 $0 $0 $1,313,107
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $8,954 $356,256 ($960,100)$295,363 $997,770
Available Fund Balance 6/30/23 8,954 $356,256 ($960,100)$295,363 $997,770
Special Revenue Funds
2022-23
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
417
ASSET SEIZURE/
SEWER STORM DRAIN FORFEITURE
FUND FUND FUND
160 161 170
ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $26,749 $18,500 $5,413
Intergovernmental/State $0 $0 $0
Intergovernmental/County $8,000 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $1,146,300 $0 $0
Other Revenue $0 $0 $0
TOTAL ESTIMATED REVENUE $1,181,049 $18,500 $5,413
INTERFUND TRANSFERS IN $0 $700,000 $0
ESTIMATED FUNDS AVAILABLE $1,181,049 $718,500 $5,413
FUND BALANCE
7/1/22 $3,227,023 $2,315,354 $580,093
TOTAL FUNDS AVAILABLE $4,408,072 $3,033,854 $585,506
APPROPRIATIONS
Operating Budget $565,742 $503,954 $5,200
Capital Outlay $0 $0 $0
Capital Improvements- PY $2,228,240 $1,681,859 $0
Capital Improvements 601,571 744,279 $0
TOTAL APPROPRIATIONS $3,395,553 $2,930,092 $5,200
INTERFUND TRANSFERS OUT $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $3,395,553 $2,930,092 $5,200
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $1,012,519 $103,762 $580,306
Available Fund Balance 6/30/23 $1,012,519 $103,762 $580,306
Special Revenue Funds
Preliminary Budget
2022-23
CITY OF HERMOSA BEACH BUDGET SUMMARY
418
RTI
FIRE RTI UNDERSEA CABLE
PROTECTION UNDERSEA CABLE TIDELANDS
FUND FUND FUND
180 190 191
ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $0 $186,250 $187,839
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $0 $0 $0
Other Revenue $34,814 $0 $0
TOTAL ESTIMATED REVENUE $34,814 $186,250 $187,839
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $34,814 $186,250 $187,839
FUND BALANCE
7/1/22 $18,528 $1,090,539 $398,697
TOTAL FUNDS AVAILABLE $53,342 $1,276,789 $586,536
APPROPRIATIONS
Operating Budget $21,531 $0 $0
Capital Outlay $0 $0 $0
Capital Improvements- PY $0 $486,692 $355,330
Capital Improvements $0 $550,000 223,342
TOTAL APPROPRIATIONS $21,531 $1,036,692 $578,672
INTERFUND TRANSFERS OUT $0 $239,245 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $21,531 $1,275,937 $578,672
DEBT SERVICE PAYMENT
ESTIMATED FUND BALANCE 6/30/23 $31,811 $852 $7,864
Available Fund Balance 6/30/23 $31,811 $852 $7,864
Special Revenue Funds
Preliminary Budget
2022-23
CITY OF HERMOSA BEACH BUDGET SUMMARY
419
Debt Service Fd
BAYVIEW DRIVE LOWER PIER
CAPITAL GREENWICH DISTRICT DISTRICT
LEASE REVENUE IMPROVEMENT VILLAGE N UNDERGROUND REDEMPTION REDEMPTION
BOND FUND FUND UTILITIES FUND FUND
201 301 313 609 610
ESTIMATED REVENUE
Taxes $0 $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0 $0
Use of Money/Property $0 $75,044 $0 $790 $27
Intergovernmental/State $0 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $0 $75,044 $0 $790 $27
INTERFUND TRANSFERS IN $685,860 $2,602,107 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $685,860 $2,677,151 $0 $790 $27
FUND BALANCE
7/1/22 $31,040 $9,071,317 $120,898 $172,734 $13,423
TOTAL FUNDS AVAILABLE $716,900 $11,748,468 $120,898 $173,524 $13,450
APPROPRIATIONS
Operating Budget $0 $60,000 $0 $0 $0
Capital Outlay $0 $371,695 $0 $0 $0
Capital Improvements- PY $0 $3,666,585 $0 $0 $0
Capital Improvements $0 4,134,497 $0 $0 $0
TOTAL APPROPRIATIONS $0 $8,232,777 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $8,232,777 $0 $0 $0
DEBT SERVICE PAYMENT $716,900 $0 $0 $0 $0
ESTIMATED FUND BALANCE 6/30/23 $0 $3,515,691 $120,898 $173,524 $13,450
Reserved for New Corporate City Yard Construction $2,189,278
(with contingency)
Reserve for Capital Facilities $841,393
Reserve for Fire Facility Payments $197,879
Available Fund Balance 6/30/23 $0 $287,141 $120,898 $173,524 $13,450
Special Revenue Funds Agency Funds
Preliminary Budget
2022-23
CITY OF HERMOSA BEACH BUDGET SUMMARY
420
BEACH DRIVE BEACH DRIVE MYRTLE LOMA
DISTRICT DISTRICT AVENUE DRIVE
REDEMPTION RESERVE ASSESSMENT ASSESSMENT
FUND FUND FUND FUND
611 612 617 618
ESTIMATED REVENUE
Taxes $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $337 $39 $0 $0
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0
Other Revenue $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $337 $39 $0 $0
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $337 $39 $0 $0
FUND BALANCE
7/1/22 $82,901 $1,729 $46,354 $114,730
TOTAL FUNDS AVAILABLE $83,238 $1,768 $46,354 $114,730
APPROPRIATIONS
Operating Budget $0 $0 $0 $0
Capital Outlay $0 $0 $0 $0
Capital Improvements- PY $0 $0 $0 $0
Capital Improvements
TOTAL APPROPRIATIONS $0 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $0 $0 $0
ADJUST FUND BALANCE FOR
FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $83,238 $1,768 $46,354 $114,730
Available Fund Balance 6/30/23 $83,238 $1,768 $46,354 $114,730
2022-23
Agency Funds
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
421
BAYVIEW
DRIVE EQUIPMENT
RESERVE INSURANCE REPLACEMENT TOTAL
FUND FUND FUND (MEMORANDUM
619 705 715 ONLY)
ESTIMATED REVENUE
Taxes $0 $0 $0 $36,665,880
Licenses/Permits $0 $0 $0 $1,408,690
Fines/Forfeitures $0 $0 $0 $1,753,010
Use of Money/Property $129 $0 $0 $1,883,119
Intergovernmental/State $0 $0 $0 $1,414,239
Intergovernmental/County $0 $0 $0 $38,000
Intergovernmental/Federal $0 $0 $0 $2,724,248
Current Service Charges $0 $3,114,147 $2,035,410 $14,044,592
Other Revenue $0 $0 $0 $444,715
TOTAL ESTIMATED REVENUE $129 $3,114,147 $2,035,410 $60,376,490
INTERFUND TRANSFERS IN $0 $278,031 $333,645 $6,572,967
ESTIMATED FUNDS AVAILABLE $129 $3,392,178 $2,369,055 $66,949,457
FUND BALANCE
7/1/22 $5,420 $2,969,221 $8,703,284 $52,730,926
TOTAL FUNDS AVAILABLE $5,549 $6,361,399 $11,072,339 $118,929,076
APPROPRIATIONS
Operating Budget $0 $3,361,399 $2,365,746 $53,987,659
Capital Outlay $0 $0 $829,098 $1,432,813
Capital Improvements- PY $0 $0 $0 $12,853,433
Capital Improvements $0 $0 $0 $10,599,177
TOTAL APPROPRIATIONS $0 $3,361,399 $3,194,844 $78,873,082
INTERFUND TRANSFERS OUT $0 $0 $0 $6,572,967
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $3,361,399 $3,194,844 $85,446,049
DEBT SERVICE PAYMENT $716,900
ADJUST FUND BALANCE FOR $829,098 $829,098
FIXED ASSET ADDITIONS 2
ESTIMATED FUND BALANCE 6/30/23 $5,549 $3,000,000 $8,706,593 $33,595,225
Designated Building Maintenance Funds $647,236
Investment in Fixed Assets $3,541,307
Assigned reserve for Police Department Radio Equipment/South Bay $30,000
Interoperability Project.
Records Technology Fee $445,148
Assigned reserve for Accounting ERP $333,645
Available Fund Balance 6/30/23 $5,549 $3,000,000 $3,709,257 $11,669,903
2022-23
Agency Fund Internal Service Funds
Preliminary Budget
CITY OF HERMOSA BEACH BUDGET SUMMARY
422
1
General Fund Revenue & Expenditure Summary
$48,186,904
Total Expenditures and Transfers Out ($50,429,986)
2,243,082 (b)
$0
$%
$16,852,301 $17,745,473 $893,172 5.3%
3,589,305 3,856,344 $267,039 7.4%
3,461,295 3,550,145 $88,850 2.6%
Utility User's Tax 2,236,149 2,262,450 $26,301 1.2%
$27,414,412 $1,275,362 4.9%
$6,949,432 $98,221 1.4%
1,408,690 $327,747 30.3%
1,746,519 1,753,010 $6,491 0.4%
1,454,297 988,228 ($466,069)(32.0%)
142,192 146,636 $4,444 3.1%
7,234,411 7,686,027 $451,616 6.2%
148,311 107,980 ($40,331)(27.2%)
$19,040,003 $382,119 2.0%
$46,454,415 $1,657,481 3.7%
1,732,489 ($996,771)(36.5%)
$48,186,904 $660,710 1.4%
General Fund Expenditures $%
Personal Services $25,601,125 $1,004,082 4.1 %
Contract Services- Private 5,817,240 $76,600 1 %
Contract Services- Government 7,350,822 7,775,783 $424,961 5.8 %
Capital Improvement Projects 40,411 40,411 $0 0 %
Material/Supplies/Other 6,474,764 $301,973 4.9 %
Equipment/Furniture 121,020 $52,554 N/A
Total Expenditures $45,830,343 $1,860,170 4.2 %
Transfers Out 4,599,643 $1,465,525 46.8 %
Total Expenditures and
Transfers Out
$50,429,986 $3,325,695 7.1 %
Budget Increase/(Decrease)
Total Revenues and Transfers
$47,104,291
Budget Increase/(Decrease)
$43,970,173
$24,597,043
5,740,640
Total Revenues
3,134,118
Use of Money & Property
Intergovernmental/State
Current Service Charges
Budget (a)
2021-22 Revised
$44,796,934
68,466
Fines & Forfeitures
Projected Surplus/(Deficit)
6,172,791
$47,526,194
Other Revenues
Transfers In 2,729,260
Subtotal Other Revenues $18,657,884
Subtotal Major Revenues $26,139,050
Other Revenues by Category
Budget (a)
Other Taxes $6,851,211
Licenses and Permits 1,080,943
2022-23 Preliminary Budget
General Fund Summary
2022-23
Preliminary Budget
Total Revenues and Transfers in
Total Changes in Fund Balance
Sales & Use Tax
Transient Occupancy Tax
General Fund Revenues
Major Revenues
Secured Property Tax
Preliminary Budget
2022-232021-22 Revised
Attachment 3
423
2
(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:
Decreased General Plan Maintenance Fees $20,100
Increased Verizon PEG ($39,980)
Increased CASP Fees ($9,714)
Increased In-Lieu/Parking Facility ($57,800)
Increased Contingency Balance ($436,168)
New Unspecified Contingencies ($730,696)
Use/Transfer portion of 2020-21 Year End Balance $3,232,145
Increased Compensated Abences ($18,362)
Reduced Prop A Fund Exchange for Engineer Salary $133,453
Reduced 2021-22 Prop A Fund Exchange for Engineer $109,693
Use 2020-21 CIP Carryforward $40,411
$2,243,082
424
City Council Hybrid Meeting
06-14-22 17:00
Agenda Name Comments Support Oppose Neutral
a) REPORT 22-0371 ADOPTION OF FISCAL YEAR 2022-23 BUDGET
(Finance Director Viki Copeland)
2 0 0 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented
will be shown.
Overall Sentiment
Agenda Item: eComments for a) REPORT 22-0371 ADOPTION OF FISCAL YEAR 2022-23 BUDGET
(Finance Director Viki Copeland)
Overall Sentiment
Dean Francois
Location: 90254, Hermosa Beach
Submitted At: 2:31pm 06-14-22
I opposed the $500,000 bollard study. Bollards cost upwards of 50,000 to 100,000 a piece and it will take many I
would say 20 to 30 bollards at least to keep the strand and plaza safe from cars. since we are doubtful to spend
that much money on this project we need to rethink this project. start over and come up with cost saving ideas
before we go to a $500,000 study to find out the information I have provided here.
Dean francois
Location:
Submitted At: 1:40pm 06-14-22
as a follow-up to the discussion at the budget workshop, comments were made about duplicate or excessive
money being spent on studies. based on these discussions, i do not see any changes made in this budget. What
us the purpose of a workshop if nothing is changed?
425
i suggest that a motion be made to stop or combine the city procedures study for $100,000 and a $420,000
business license study . A city commission could put together a list of permitting fees and go from there. Also a
motion to stop a $500,000 study of strand bollards. if the HBPD wants to implement something they should come
up with a plan without spending $500,000. hopefully a project such as that would cost $1 million with out a 500k
study. A 500K study means spending 3-10 Million which will be excessive anyway. And the $500,000 parks
masterplan should include the separate bleacher and pickleball studies. Also scrap the $600,000 facility
condition assessment.
426
From:tony higgins
To:City Clerk
Cc:City Council; Suja Lowenthal; Angela Crespi; Ann Yang; Joseph SanClemente; John Cordova; Lisa Nichols
Subject:Taxation without Representation - Fiscal Year 2022-23 budget.
Date:Saturday, June 11, 2022 7:10:50 PM
Dear City Clerk Maravilla,
Please accept this as a written supplemental relating to the upcoming city council meeting
Item XIII a) Adoption of Fiscal Year 2022-23 budget
START SUPPLEMENTAL HERE
——————————————-
June 11, 2022
Dear City Council
Our City Council is preparing to ask voters to approve a .75% increase in our local sales tax
that will increase the price of a new car in Hermosa Beach by about $500 and be felt as more
inflation for goods and services we buy on-line or at our local shops and restaurants.
The City Manager also wants to tax things like your Netflix & Disney channel usage basically
like they tax your electrical usage.
Our City Manager and City Council want to raise our parking permit fees, parking meter
rates, the price you must pay for a permits to install a new water heater or remodel your
bathroom and so on.
Is it justified? Who knows.
And that’s the problem.
The city manager determines how money is spent in Hermosa Beach and essentially says
“Trust me, I know what I’m doing”
https://youtu.be/8HM96wpPVoQ
4 out of 5 of our councilman agree and simply don’t ask tough probing questions about the
need for these new taxes & fees nor do they ask probing questions about how the money is
spent.
Based in the Councils actions in the recent budget study session they seem think their job is to
put the best possible spin of the city managers agenda for public consumption, including new
local taxes and & fees and 2.5 million dollars in new studies; and generally not to question the
scope or need for them.
Councilman Jackson is the notable exception.
427
But if our City Council won’t ask and demand answers to tough probing questions about
the need to 2.5 million dollars for study after study and they won’t answer resident oral
or written questions on the same how are residents to know if they should vote for a
.75% increase in our local sales tax?
These studies include:
1. $500,000 for the best way to keep private vehicles off the strand and plaza,
Will this $500,000 study result in a bid ready RFP?
2. $100,000 to improve process flows in our building permit and code enforcement
department,
Will this study result in a ready to bid RFP for equipment, software and training?
Didn’t we just hire a very highly qualified Community Development Director?
If this Director doesn’t already know how to go about implementing software processes and
procedures in our code enforcement department that’s a problem. No? Shouldn’t that have
been a job requirement? I think our new director could probably do a good job on thes and if
time is the limiting factor then the city is owed an explanation of what would and wouldn’t get
done if this task were assigned to her. That’s just OVERSIGHT 101.
3. $600,000 to tell us the city hall facilities are inadequate and to justify a new City Hall
building,
What exactly is the goal of this project? Will it give us architectural drawings and ready to bid
documentation for a new city hall?
Shouldn’t the city know if it is going to rebuild a new city hall and if so when?
Is the goal of this study just to come up with a stop-gap measures to best accommodate city
staff until we build a new city hall?
If so can’t our assistant city manager together with our highly qualified directors & managers
team up and develop a plan?
And once again if for some reason this is beyond the capability of our directors and city
managers then what exactly are we getting for $600,000?
If it’s that staff just doesn’t have time to do this what exactly would and wouldn’t get done if
this task was assigned to them.
4. $500,000 for a study to improve the city yard on top of $2,200,000 to actually
implement the project
I understand we need bid a bid ready RFP and architectural drawings but is that the goal of the
428
study?
I can’t believe that our very highly qualified Public Works Director can’t define the
requirements for a city yard if he has input from a staff.
So is the city paying $500,000 to develop architectural drawings and prepare a bid ready
RFP? for the City yard? Public works does many RFPs and engineering drawings.
$500,000 seems like a lot. And how do we know the budget is $2,200,000 for the new city
yard if we don’t have plans and architectural drawings already?
Is the purpose of this study in some part to review and implement new processes and
procedures for city maintenance? Don’t we have a recently hired manager John Cordova that
can do that?
Are you saying the our Public Works Director doesn’t have the skills when combined with his
engineering team to do this $500,000 city yard study or they don’t have the skills?
If public works doesn’t have the skills why why wouldn’t one of the new engineering FTE’s
the city is planning to hire be required to have these skills?
If the public works Director and Manager and staff don’t have the time what would and
wouldn’t get done if this study was assigned to him and his team?
Approximately how many man hours would it take?
What are the specific deliverables of this study? $500,000 ain’t chump change!
5. $500,000 for a New Parks Master Plan:
Since this this study has a timeframe that goes far beyond 1-5 years I can see that outside help
is required. But what exactly is the city getting for its $500,000? Will it include a phased
approach and all the drawings and plans and needed RFPs needed to go out to bid once
funding is available for each phase? Or will the Parks department after spending $500,000
have to come back to the taxpayer for this.
Currently residents are allowed to ask questions in the council meetings but the council almost
never answers or discusses them.
Written communications to the council are almost never discussed publicly and are usually
just buried in the public record without comment or discussion.
Until the city allows residents to ask questions during funding study sessions and get direct
real time answers in a public forum our response should be a resounding NO NEW TAXES
and no budget increases.
There are fundamental questions about these studies that are not being asked or answered
including why are we hiring so many directors, managers and even an assistant city managers
that can’t act as a team and prepare conduct these studies and prepare these plans for the
429
challenges they face over a 1-3 year or even 5 year planning horizon without outside help to
the tune of 2.5 miillion dollars in studies.
I understand that on a 5 -20 year planning horizon we probably don’t have staff with the
experience to consider all the long term opportunities. But on a 1-5 year horizon I believe our
directors and staff should be able to figure out most of that providing each department gets
some long term 5-20 year guidance. That’s the stuff of seminars and bringing in a few subject
matter experts.
Finally, if 4 out of 5 of our Councilmen think their job is simply to spin the City Managers
agenda and occasionally come up with a new good idea; and not examine the budget in detail
and look for ways to improve it then residents should consider voting these Councilmembers
out office.
We deserve a more Responsive & Transparent City Government.
Anthony Higgins
430
From:tony higgins
To:City Clerk
Cc:Douglas Krauss
Subject:2nd supplemental to tonight’s city council meeting.
Date:Tuesday, June 14, 2022 5:30:47 AM
Attachments:image001.png
Logo, icon Description automatically generated.png
Dear City Clerk
Please accept this as a second written supplemental to item XIII. a) ADOPTION OF FISCAL YEAR 2022-23 BUDGET
START
Dear City Council
I cannot find any budget covering noise and near roadway pollution measurements associated to truck and vehicle traffic that
has been rerouted into residential neighborhoods and onto already overwhelmed local collector roads like 27th street as a
function of the Pier Ave Lane reduction project.
Nor can I find a budget line item covering an assessment of the health impacts of excessive noise and the near roadway
pollution that is thickly layering our bushes and yards and spotting our interior walls if we leave our windows open on 27th
street with a toxic brew of vehicle exhaust soot, carcinogenic tire dust and diesel particulate matter, brake pad dust and so on.
Much of this particulate matter that is layering our yards is less than 2.5 microns in diameter and therefore is breathed deeply
into our lungs, nearly impossible to expel and accordingly these toxins and carcinogens are absorbed into our blood stream
and and finds its way into our brains and other vital organs.
Yet despite the overwhelming evidence of near roadway pollution problems on 27th there is no line item in the budget for a
health assessment as required under CEQA.
The attached email shows how the city is whitewashing the impacts of the Pier Ave lane reduction project, ignoring public
questions and underfunding the ceqa process
June 8, 2022
Dear Environmental Analyst Krauss,
Here we are a year and a half from the implementation of outdoor dining at 60 plus sites, lane reductions on the
city’s only east west truck route that runs from PCH to Hermosa Ave and a bicycle lane project that requires a
CEQA analysis because it required lane reductions to implement AND the public still is being kept in the dark on
the ceqa plan and processes that will be used to protect residents in vulnerable neighborhoods from the direct and
indirect impacts of these projects and other discretionary projects like vista elementary and the Herondo truck
berm project that have likely had a demonstrable significant cumulative impact on our health, safety and quality
of life on 27th street.
Look, forgive me for being blunt but I would have thought that any qualified environmental analyst for a city with
as many city sponsored & commercial discretionary projects as Hermosa Beach would have an environmental
analyst capable of quickly pulling together a fairly detailed ceqa project plan.
To be candid I believe you have these skills but the city has intentionally delayed the ceqa analysis to entrench
these projects and obfuscate the impacts.
I also believe the city’s use of “temporary project” designation for the lane reduction and outdoor dining projects
is simply a tactic to delay the ceqa analysis to entrench these projects.
It shouldn’t take a year and a half to develop a ceqa plan and their is simply no justification that the public has
been kept in the dark for so long.
I’m sure you would agree that CEQA planning should be one of the core competencies of any Hermosa beach
environmental analyst.
So what do we still NOT know more than a year and a half after the first extension:
431
1. When will the city produce an initial study?
2. Will public question and answer session be held before the start of the initial study so residents can raise their
concerns with the initial study methodology and deliverables?
3. Same question for an EIR… Will public question and answer session be held before the start of the initial
study so residents can raise their concerns with the initial study methodology and deliverables or will the city just
allow a 3 minute comment period and not take questions?
4. Has the city made a decision to do a negative declaration, mitigated negative declaration or a full EIR and why
hasn’t this been shared with the public?
Additional questions I’ve asked go back for more than a year and are included in the url below and the attached
emails:
https://hermosabeach.legistar.com/View.ashx?M=F&ID=10836296&GUID=21D2F36F-71B9-4520-BF39-
5EEC0BBF3861
Mr Krauss, you committed to a CEQA update in the 5/24 staff meeting and we still don’t have answers to basic
questions like the ones above or in the attached emails.
This foot dragging is denying residents of vulnerable neighborhoods their due process under ceqa.
It’s reached the point where one has to question the motives, ethics and competence of city officials and the
competence of the city council that should be exercising more oversight as this process drags on and on.
Thank you for considering this and please review tha attached emails.
Anthony Higgins.
On Apr 12, 2022, at 7:27 AM, Douglas Krauss <dkrauss@hermosabeach.gov> wrote:
Mr. Higgins,
We continue to work with our CEQA consultant and City Attorney’s office to determine the scope of the
CEQA analysis. This includes engaging one of our on-call traffic engineers to determine what additional
traffic data would be useful. This analysis will help determine what the next steps are and what public
engagement or input will be necessary. We plan to bring a full update on this and the other activities
related to development of a permanent outdoor dining program to the City Council at their May 24
meeting. We do not have a more definitive timeline of completion of the CEQA review as of yet.
Douglas Krauss | Environmental Programs Manager
City of Hermosa Beach
1315 Valley Dr., Hermosa Beach, CA 90254
o: 310-750-3603
e: dkrauss@hermosabeach.gov
hermosabeach.gov
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From: tony higgins <tony.higgins123@gmail.com>
Sent: Friday, April 1, 2022 9:51 AM
To: Ken Robertson <krobertson@hermosabeach.gov>
Cc: City Council <citycouncil@hermosabeach.gov>; Suja Lowenthal <suja@hermosabeach.gov>;
DG_PlanningCommission <DG_PlanningCommission@hermosabeach.gov>; Douglas Krauss
432
<dkrauss@hermosabeach.gov>; Scott.Morgan@opr.ca.gov; jennie.lee@opr.ca.gov; erik.dekok@opr.ca.gov
Subject: Pier Ave Lane Reduction project EIR
Dear Mr. Robertson
Dear Environmental Analyst Krauss
For the past year I have been asking the same questions over and over and you, your department, the city
council and the planning commission have been stonewalling me.
My latest attempt to get answers was ignored so I will try again. My next step will go to the State of
California Office of Office of Planning and Research with a history of my attempts to get answers to these
reasonable questions and ask that the city be somehow sanctioned for obstructing and delaying the CEQA
process for the Pier Ave Lane Reduction project and denying residents in vulnerable neighborhoods their
due process under state CEQA laws.
February 28, 2022
Dear Councilman Jackson
Dear Environmental Analyst Krauss
Dear City Council Members
Dear Planning Commission Members
Subject: Unreasonable CEQA Analysis delays and Lack of Information
For more than a year I have been asking the following questions related to the Pier Avenue Lane
Reduction Project and its dependent projects; the 60+ Location Outdoor Dining Projectand
the Bicycle Lane Project that were implemented to provide temporary support to the business
community during the Covid Crisis.
QUESTIONS:
1. When will the CEQA public hearings on these 3 projects be held and if you don't know when
will you have an answer?
2. Will these public hearings allow residents to engage in an interactive question/answer period
with city managers & staff as was done during the Vista Elementary School EIR process OR will
the city restrict residents to making 3 minute statements during the CEQA public hearings; and if
you don't know when will you have an answer?
3. What was the justification for delaying the start of CEQA process into 2022 given that most
indoor dining restrictions were lifted in May of 2021; and effectively delaying & denying vulnerable
neighborhoods and residents the due process rights provided for in the CEQA statute?
4. When is the CEQA initial study going to be completed; and if you don't know when will you
have an answer?
5. Why is the city taking so long to respond to these questions? I’ve been trying to get answers to these
questions for over a year now and have the emails to prove it.
Sent from my iPhone
EARLIER EMAIL:
From: tony higgins <tony.higgins123@gmail.com>
Date: June 2, 2022 at 10:48:25 AM PDT
To: Douglas Krauss <dkrauss@hermosabeach.gov>
Cc: City Council <citycouncil@hermosabeach.gov>, Suja Lowenthal <suja@hermosabeach.gov>
Subject: Tire dust a significant health risk far greater than vehicle emissions
Dear Environmental Analyst Krauss
433
Here is a real interesting scholarly article on tire dust that thickly coats our yards and bushes on 27th;
but not adjacent numbered streets and may have significant potential health impacts depending on
exposure levels that dwarf auto & truck emission health hazards; especially when heavy trucks,
heavy SUVs and powerful sports cars are very close to homes and operating under high torque as
when aggressively accelerating up hills on 27th.
The only solution-reduce the amount of traffic and slow it down.
The same case can be madefor excessive and unhealthy levels of aerosolized tire dust (e.g. <2.5
micron particulate matter for heavily loaded dump trucks or cement trucks running just 6-10 feet
from our property lines and homes on westbound 27th. They produce excessive tire dust.
The article cites an important fact: 11% of tire dust is in the <2.5 micron range and this is
several hundred times the amount of airborne particulate matter from auto exhaust.
Both tire dust and vehicle emissions contain known carcinogens.
This means tire dust this <2.5 micron tire dust is airborne, breathed deeply into our lungs, very
difficult to expel and easily transferred into our blood streams and deposited into our organs
and brains.
And our bushes are thickly layered in these carcinogens.
And if we leave our street facing windows open to enjoy the ocean breeze our interior walls are
speckled in tire dust, brake dust and other vehicle emissions and carcinogens.
The fact our homes are so close to westbound 27th street traffic demand special protections and
mitigations and the ceqa process for the pier ave lane reduction project must speak squarely to the
health implications wrought on us from cumulative discretionary city projects that have shifted more
and more heavy truck and vehicle traffic onto our residential street.
Here is the tire dust article.
https://www.greencarcongress.com/2022/05/20220513-ea.html
EARLIER EMAIL:
Mr. Higgins we do not yet have an update on the status of the CEQA analysis. We are in the early stages of discussing the
process, including some of the items you mentioned. We will keep Council updated when appropriate.
Concerning the links to your records, please send them to me.
Thank you,
Douglas Krauss | Environmental Programs Manager
City of Hermosa Beach
1315 Valley Dr., Hermosa Beach, CA 90254
o: 310-750-3603
e:dkrauss@hermosabeach.gov
hermosabeach.gov
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Download the Go Hermosa app for service requests.
Subscribe to E-Notifications
From: tony higgins <tony.higgins123@gmail.com>
Sent: Monday, January 24, 2022 5:39 PM
To: Douglas Krauss <dkrauss@hermosabeach.gov>
Cc: City Council <citycouncil@hermosabeach.gov>; Angela Crespi <acrespi@hermosabeach.gov>; Suja Lowenthal
434
<suja@hermosabeach.gov>
Subject: CEQA
Dear Mr. Krauss
Will the city be in a position to provide a brief status on when the initial study for the (1) the single lane configuration, (2)
the outdoor dining project and (3) the bicycle lane project will be completed and open for public comment?
Has the city determined if it will combine all three projects into one study and has the city determined if it will be issuing
a negative declaration, mitigated negative declaration or if it will be initiating an EIR for any or all of the aforementioned
projects...
I plan to ask the city council for a brief status on this during my public comment period.
Finally, I will be sending whomever is doing the initial study public records of my communications raising my concerns
over the single lane configuration and how the cumulative indirect impacts on 27th street certainly meet the test of a
possible significant impact.
To whom do i address the links to these records?
Thank You,
Anthony Higgins
EARLIER EMAIL:
From: tony higgins <tony.higgins123@gmail.com>
Date: May 9, 2022 at 1:42:40 PM PDT
To: Douglas Krauss <dkrauss@hermosabeach.gov>
Cc: Ann Yang <anny@hermosabeach.gov>, Suja Lowenthal <suja@hermosabeach.gov>, Angela
Crespi <acrespi@hermosabeach.gov>, City Council <citycouncil@hermosabeach.gov>,
dg_planningcommission@hermosabeach.gov, Michael Jenkins <Michael.jenkins@bbklaw.com>
Subject: Urgency Ordinance | Extending Outdoor Dining and Lane Reconfiguration - 5/24
council mtg.
Dear Environmental Analyst Krauss
Dear City Clerk
Dear City Council
Dear Planning Commission
To date the city has used a temporary six month extension “game”to delay the CEQA analysis for the
outdoor dining project, the lane closure project and the bicycle lane project.
I call it a “game” because everyone knew from the outset the city had no intention of making these
projects temporary and everyone knows the city used the temporary designation to unnecessarily
delay the CEQA analysis and entrenchthese projects.
Mr. Krauss you promised a full update on the CEQA project in the upcoming 5/24 council meeting.
I hope in the interest of fairness this update will be comprehensive and occur before the request for
still another temporary extension AND before the cannabis study session discussions that were also
moved to the same 5/24 council meeting.
Residents in vulnerable neighborhoods have a right to hear the detail of the CEQA plan before the
council votes on any extension.
I hope the city schedules your CEQA project update first, then the outdoor dining extension then the
cannabis session.
Pushing the ceqa update and extension request into the wee hours of the night would be viewed by
435
this citizen as just another way to avoid accountability to provide CEQA due process to vulnerable
neighborhoods.
Also I believe residents deserve an explanation as to why this temporary extension is longer than
previous 6 month extension requests. What is the justification for that?
Thank You
Anthony Higgins
Begin forwarded message:
From: City of Hermosa Beach <info@news.hermosabeach.gov>
Date: May 9, 2022 at 9:21:34 AM PDT
To: tony.higgins123@gmail.com
Subject: City of Hermosa Beach: Notice of Public Hearing - Urgency Ordinance |
Extending Outdoor Dining and Lane Reconfiguration | 05-12-2022
Reply-To: info@news.hermosabeach.gov
Notice of Public Hearing - Urgency Ordinance | Extending Outdoor Dining and
Lane Reconfiguration | 05-12-2022
Post Date: 05/09/2022 8:31 AM
NOTICE OF PUBLIC HEARING
EXTENSION OF INTERIM URGENCY ORDINANCE EXTENDING THE CITY’S
TEMPORARY OUTDOOR DINING AND LANE RECONFIGURATION
NOTICE IS HEREBY GIVEN that the City Council of the City of Hermosa Beach will hold a public
hearing on Tuesday, May 24, 2022, to consider the following:
The City Council adopted Urgency Ordinance No. 2—1410U and Urgency Ordinance No. 20-1413U
Interim Urgency Ordinance No. 2020-01, and made the necessary findings to temporarily permit outdoor
dining subject to various requirements and temporary reconfiguration and closure of lanes on Hermosa
Avenue and Pier Avenue to reduce any risks related to COVID-19 pandemic and to assist restaurants and
retail businesses during the COVID-19 pandemic. The purpose of this public hearing is to consider an
extension of these temporary programs until January 1, 2023.
SAID PUBLIC HEARING shall be held at 6:30 p.m., or as soon thereafter as the matter may be heard
at the regular City Council meeting.
Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend
measures to promote social distancing. Members of the public may email comments to
cityclerk@hermosabeach.gov or submit eComments until 3:00 p.m. on the meeting date.
IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach
ZOOM: The link is available on the published agenda at www.hermosabeach.gov
OR PARTICIPATE BY PHONE: Toll Free: 833-548-0276 Meeting ID: 899 6820 7828, then #
Passcode: 472825 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD
IS OPENED. If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line
when asked to do so. Comments from the public are limited to 3 minutes per speaker.
Myra Maravilla
City Clerk
Notice of Public Hearing - Urgency Ordinance | Extending Outdoor Dining and Lane Reconfiguration |
05-12-2022
Click here for more information
436
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0350
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
PUBLIC HEARING-HERMOSA BEACH LANDSCAPING
AND STREET LIGHTING DISTRICT FISCAL YEAR 2022-2023
(Public Works Director Joe SanClemente)
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 2022-2023; and
2.Adopt a Resolution (Attachment 1)confirming the diagram and assessment found in the
Engineer’s Report (Attachment 2)for Hermosa Beach Landscaping and Street Lighting
District 2022-2023 and levying an assessment for the Fiscal Year beginning July 1,2022 and
ending June 30, 2023.
Executive Summary:
The Hermosa Beach Landscaping and Street Lighting District (District)collects funds for the
maintenance and operation of the citywide street lighting program and landscaping within street
medians and parkways.The District must be renewed annually by following a three-step process.
Staff recommends continuation of the process for Fiscal Year 2022-2023.
Background:
The District was created in Fiscal Year 1989-1990,pursuant to the Landscaping and Lighting Act of
1972 (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 has not increased since the passage of Proposition 218 in
1996 and is set at $41.45 per dwelling unit.
The District must be renewed annually by following a three-step process.First,Council authorizes
the Director of Public Works to prepare an Engineer’s Report containing the estimated cost of
maintaining the District,the list of parcels within the District,and the method of apportionment of the
assessment.At its April 12,2022 meeting,City Council adopted Resolution No.22-7310 authorizing
preparation of the Engineer’s Report.Second,the Engineer’s Report (Attachment 2)is presented to
Council for approval and the Council sets a date for a public hearing declaring the City Council’s
City of Hermosa Beach Printed on 9/12/2022Page 1 of 4
powered by Legistar™438
Staff Report
REPORT 22-0350
Council for approval and the Council sets a date for a public hearing declaring the City Council’s
intention to order certain improvements and to levy and collect assessments within the District for the
new fiscal year.At its May 10,2022,Council adopted Resolution No.22-7312 approving the
Engineer’s Report and Resolution No.22-7313 declaring the City’s intention to order certain
improvements,to levy and collect assessments,and to set June 14,2022 at 6:30 p.m.as the date
and time for a public hearing.The notice of the public hearing was published in the Easy Reader on
May 19, 2022.
The third and final step is to hold a public hearing to accept public input on the matter of the
proposed assessment and, if approved, to levy the assessment for the new fiscal year.
Past Council Actions
Meeting Date Description
April 12, 2022 City Council adopted Resolution 22-7310 authorizing the
preparation of an Engineer’s Report for the Landscaping
and Street Lighting District.
May 10, 2022 City Council adopted Resolution 22-7312 approving the
Engineer’s Report and Resolution 22-7313 declaring the
City’s intention to order certain improvements, to levy and
collect assessments, and to set June 14, 2022 as the date
for a public hearing.
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.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 2022-2023.
The Council is now considering the third,and final,step in the process to hold the public hearing.If
approved,the City would levy an assessment for the Fiscal Year beginning July 1,2022 and ending
June 30, 2023.
The total assessment anticipated to be collected for Fiscal Year 2022-2023 is $461,300.The
difference between what is collected through the assessment and what is needed to operate the
District next fiscal year would be subsidized.An additional amount of $239,245 from the RTI
Undersea Cable Fund and $1,590 from the Tyco Fund would be transferred to the Landscaping and
Street Lighting District Fund to maintain the District for the upcoming fiscal year.
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An additional $25,000 is included in the FY 2022-2023 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.
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 rights-of-way.Prioritize improvements of public rights-of-way 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.
Policy:
·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
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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 estimated District assessment for Fiscal Year 2022-2023 is $461,300,leaving a deficit of
$240,835.The Preliminary Budget proposes a transfer of $239,245 from the RTI Undersea Cable
Fund and $1,590 from the Tyco Fund (rather than the General Fund)to cover the deficit in the
Landscaping and Street Lighting District Fund and maintain the Citywide Landscaping and Street
Lighting District for Fiscal Year 2022-2023.
Attachments:
1.Draft Resolution
2.Engineer’s Report
3.Link to April 12, 2022 Staff Report
4.Link to May 10, 2022 Staff Report
Respectfully Submitted by: Andrew Nguyen, Associate Engineer
Concur: Lucho Rodriguez, Deputy City Engineer
Concur: Joseph SanClemente, Public Works Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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Page 1 of 3 22-XXXX
1
RESOLUTION NO. 22-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, 2022 AND ENDING JUNE 30, 2023 IN 6
CONNECTION WITH THE HERMOSA BEACH LANDSCAPING AND STREET 7
LIGHTING DISTRICT 2022-2023 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. 22-7310 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, 2022 and ending June 16
30, 2023. Pursuant to Resolution No. 22-7310, such report was prepared and filed with the City 17
Clerk. 18
SECTION 2. The City Council adopted Resolution No. 22-7312, approving the report as 19
filed, and Resolution No. 22-7313 declaring its intention to order certain improvements and to levy 20
and collect assessments for the fiscal year commencing July 1, 2022 and ending June 30, 2023 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
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Page 2 of 3 22-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 2022-2023 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, 2022 and ending June 30, 2023. 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 2022-2023. 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 14th day of June, 2022. 62
63
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Page 3 of 3 22-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
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ENGINEER’S REPORT
CITY OF HERMOSA BEACH
LANDSCAPING AND
STREET LIGHTING DISTRICT
2022-2023
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ENGINEER'S REPORT
CITY OF HERMOSA BEACH
LANDSCAPING AND
STREET LIGHTING DISTRICT
2022-2023
Prepared By:
Romany Basilyous
Associate Engineer
Lucho Rodriguez, P.E.
Deputy City Engineer
May 10, 2022
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ENGINEER'S REPORT
CITY OF HERMOSA BEACH
LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023
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
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ENGINEER’S REPORT
CITY OF HERMOSA BEACH
LANDSCAPING AND STREET LIGHTING DISTRICT 2022-2023
The undersigned respectfully submits the enclosed report as directed by the City Council.
DATED: May 10, 2022
BY: Joseph SanClemente
Director of Public Works
______________________________________
BY: Lucho Rodriguez, P.E.
Deputy City Engineer
______________________________________
BY: Romany Basilyous
Associate Engineer
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and
Diagram thereto attached was filed with me on the _________ day of __________, 2022.
City Clerk, City of Hermosa Beach
Los Angeles County, California
By
I HEREBY CERTIFY that the enclosed Engineer's Report, together with Assessment Roll and
Diagram thereto attached, was approved and confirmed by the City Council of the City of
Hermosa Beach, California, on the _________ day of __________, 2022.
City Clerk, City of Hermosa Beach
Los Angeles County, California
By
I HEREBY CERTIFY that the enclosed Assessment Roll and Diagram were filed with the
County Auditor of the County of Los Angeles, on the _________ day of __________, 2022.
City Clerk, City of Hermosa Beach
Los Angeles County, California
By
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FISCAL YEAR 2022-2023
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 2022-2023
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 2022-2023, 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.
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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.
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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 2022-2023
The proposed improvements for FY 2022-2023 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.
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PART B
ESTIMATE OF COSTS
LANDSCAPING AND STREET LIGHTING DISTRICT
Proposed Budget - Fiscal Year 2022-2023
The estimated cost of the operation, servicing and maintenance of the street and sidewalk
improvements for fiscal year 2022-2023, 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
$522,782
Administration Costs $11,054
Insurance $204,533
L.A. County Tax Collection Costs $2,000
Equipment Replacement $55,099
Proposed Capital Improvements $0
Expenditures Subtotal: $795,468
Appropriation from Fund balance $92,097
Amount transferred from RTI Undersea Cable Fund and Tyco Fund $240,835
Miscellaneous Revenues $1,236
Total Assessment: $461,300
Fund Balance 6/30/23 $0
Total amount of $229,790 was transferred from the RTI Undersea Cable Fund in FY 2021–
22. An additional amount of $239,245 will be transferred from the RTI Undersea Cable
Fund and $1,590 will be transferred from the Tyco Fund to maintain the District for FY
2022–23.
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 2022-2023 is estimated to be $795,468.
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PART C
ASSESSMENT ROLL
The total proposed assessment for Fiscal Year 2022-2023 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.
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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
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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 11,129 EDU's within the Assessment District.
ASSESSMENT RATE CALCULATION
Based on a budget of $461,300 as shown in Part B of this report, the preliminary assessment
rate for FY 2022-2023 is calculated as follows:
$461,300 ÷ 11,129 EDU's = $41.45 per EDU
The assessment for FY 2021-2022 was $41.45 per EDU.
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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.
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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
2021-2022. The Assessor's maps and records are incorporated by reference herein and made
part of this report.
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2022-2023
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0374
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
INFORMATION REGARDING THE CITY’S
HISTORIC RESOURCES PRESERVATION PROGRAM
(Interim Community Development Director Angela Crespi)
Recommended Action:
Staff recommends City Council receive a report regarding the City’s historic resources preservation
program and provide staff with feedback regarding the program as desired.
Executive Summary:
At its May 10,2022 meeting,Mayor Mike Detoy requested Council consider directing staff to bring an
item regarding the City’s historic resources preservation program including fiscal impacts,possible
waiver of fees,and any information about historical designations in Hermosa Beach.The proposed
future agenda item was unanimously supported by all Councilmembers in attendance.This report
provides an overview of the historic resources preservation program,as well as the requested
financial information.
Background:
The City’s Historic Resources Preservation Ordinance, as codified in the Hermosa Beach Municipal
Code (HBMC) Chapter 17.53 was adopted in 1998. The purpose of the historic resources
preservation program is to identify and ensure the long-term protection and use of local historic
resources, such as buildings and structures, sites and places within the City that reflect special
elements of the City's architectural, artistic, cultural, historical, political, and social heritage.
To be eligible for consideration as a landmark, a historic resource must be at least 50 years old.
However, a historic resource at least 30 years old may be eligible if the City Council determines it is
exceptional or is threatened by demolition, removal, relocation, or inappropriate alteration. Per the
HBMC, the resource must also meet one or more of the following criteria:
•It exemplifies or reflects special elements of the City’s cultural,social,economic,political,
aesthetic, engineering, or architectural history;
•It is identified with persons or events significant in local, state, or national history;
•It embodies distinctive characteristics of a style,type,period,or method of construction,or is a
valuable example of the use of indigenous materials or craftsmanship;
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•It is representative of the notable work of a builder, designer, or architect; or
•Its unique location or singular physical characteristic(s)represents an established and familiar
visual feature or landmark of a neighborhood, community, or the City.
Past Board, Commission, and Council Actions
Meeting Date Description
December 17,1996 City Council adopted a two-year moratorium ordinance on
the demolition or modification of historic and architecturally
significant structures for the purpose of possible adoption of
a historic preservation ordinance.
October 20, 1998 Planning Commission adopted a resolution recommending
approval of the draft Hermosa Beach Preservation
Ordinance (PC Resolution 98-65).
October 27, 1998 City Council approved a text amendment to the zoning
ordinance adding a Hermosa Beach Preservation
Ordinance (Ord. No. 98-1186). City Council adopted a
resolution establishing a list of potential historic buildings
(Resolution No. 98-5937).
July 23, 2002 City Council approved the designation for the Hermosa
Beach Community Center at 710 Pier Avenue (City Council
Resolution 02-6216).
Discussion:
Nomination of a historic resource as a landmark may be made by the City, or by application of the
property owner or property owners representing a majority or controlling interest in the property on
which the resource is located. With the property owners written consent, a Historic Landmark
Nomination Application may be submitted to the Community Development Department for
processing.
Once the Community Development Department has determined an application is complete, meaning
the application is submitted with all supporting materials and all fees have been paid, no
development related permits including: building; alteration; demolition; removal; or relocation permits
for any historic resource, improvement, building or structure relative to a proposed landmark shall be
issued until a final determination regarding the proposed designation is made by City Council.
After receipt of a complete application,staff would schedule a public hearing before the City Council
to study the proposed designation and to determine its eligibility and qualifications.The Council has
no more than 70 days from the initial hearing date to approve,in whole or in part,or disapprove the
proposed designation.Council carefully considers whether a proposed property meets the HBMC
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criteria for landmark designation, therefore, an application does not guarantee designation.
The fiscal impact of an application is reflected in the application fees, which are included in the City’s
Master Fee Schedule and based directly on the cost of providing the service. In 2022, the total fees
associated with a historic resource nomination is $4,298.19* and include:
·Historic Resources Review, Nomination/Application Fee $2,756;
·Legal Public Hearing Noticing (300 Foot Radius) $881;
·Legal Advertising in a Local Newspaper $176;
·Required Categorical Exemption of the California Environmental Quality Act $204; and
·City Records Technology System Fee $281.19.
*An additional 2.75 percent processing is applied if the applicant pays by credit card.
There is no mechanism in the associated HBMC or the resolution adopting the Master Fee Schedule
to waive the fees associated with an application by a property owner. Should Council desire a
mechanism to waive the fees associated with a Historic Landmark Nomination Application, policy
decisions including objective eligibility criteria would need to be made. Similarly, should City Council
desire to initiate the nomination of a privately owned property, the same eligibility criteria would need
to be established. Eligibility criteria could include considerations regarding the quality of the structure,
owner income, community benefit, potential for destruction, etc.
The above outlined fees do not include the possible need to hire a historic preservation consultant to
prepare a study outlining the historical or architectural significance of the proposed resource. If
required, the report and recommendation from a historic preservation professional would serve as the
basis for City Council action regarding whether the resource qualifies under the ordinance criteria.
The estimated cost of a professional historic preservation report is between $5,000 and $10,000. If
such a consultant were deemed to be necessary, the cost would need to be reimbursed by the
applicant.
Once City Council designates a property as a historic landmark, the property is listed on the local
register of landmarks and all appropriate City departments are notified so that the notice of
designation is incorporated into the necessary City records. Unless otherwise exempted, HBMC
Section 17.53.140 requires any modification to a property listed on the City’s register of landmarks to
obtain a Certificate of Appropriateness granted by the City Council. The review process for a
Certificate of Appropriateness includes a City Council evaluation of whether the proposed
modifications alter any of the historic defining characteristics of the structure. With the local
designation, the landmark would be able to utilize the California Historical Building Code as an
alternative to complying with the building standards in HBMC Title 15, Building Code.
As of June 2022, the following buildings have been designated or identified for protection under the
City’s Historic Resources Preservation Ordinance:
1.The locally designated landmark ‘Bijou Theater’ at 1229-1235 Hermosa Avenue;
2.The locally significant landmark Hermosa Beach Community Center at 710 Pier Avenue (City
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2.The locally significant landmark Hermosa Beach Community Center at 710 Pier Avenue (City
Council Resolution 02-6216); and
3.The Bank of America Building at 90 Pier Avenue and Hermosa Hotel at 20-26 Pier Avenue are
designated as potential landmarks that warrant further study by Section 17.53.040(B)of the
Historic Preservation ordinance (per Planning Commission Resolution No. 98-65).
Removal of a historic landmark designation status would also require an application and City Council
approval. In the event of substantial destruction of a landmark, the City Council would hold a public
hearing to determine whether the character defining features have been altered thus negating the
historic status. The fee associated with an application to remove the historic status in 2022 would be
$6,039 per the City’s Master Fee Schedule.
In Hermosa Beach, a historic landmark designation is for local purposes only and does not include
State or National designation. The City does not currently participate in historic preservation incentive
programs such as the Mills Act, which is a State program administered and implemented by local
governments.
Where available, the Mills Act program allows cities to enter into contracts with the owner of a historic
structure to provide a method of reducing property taxes by 50 percent or more, in exchange for the
continued preservation of the property. To qualify for the Mills Act, a building must first be designated
as a local landmark or be a contributing structure within a designated local historic district approved
by the City Council.
To opt into the Mills Act program, City Council would need to adopt an ordinance to implement the
Mills Act. The City would then have the authority to determine eligibility criteria, how many contracts
they will allow in their jurisdiction, application procedures, and contract terms.
The City is currently undergoing a comprehensive update to the zoning code. As part of this effort,
the Planning Commission and City Council will consider changes to code sections including HBMC
Chapter 17.53 (Historic Resources Preservation). As currently proposed, modifications to changes to
Chapter 17.53 only include minor text changes to ensure that the language is clear, concise, and
easy to use. No major programmatic or policy changes are proposed as the City’s Historic
Preservation Ordinance is currently in line with industry best practices.
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:
Land Use Element
Goal 5. Quality and authenticity in architecture and site design in all construction
and renovation of buildings.
Policy:
·5.5 Preservation and adaptive reuse.Provide incentives for the preservation or adaptive
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reuse of historic structures and iconic landmarks.
Goal 10. A strong sense of cultural and architectural heritage.
Policies:
·10.1 Historic landmarks and districts.Encourage the voluntary designation of potentially
historic resources as landmarks or historic districts.
·10.2 Protect designated landmarks.Continue to use the Certificate of Appropriateness
process for reviewing applications to demolish or alter designated landmarks.
·10.3 Public and institutional facilities.Consider the designation of potentially historic public or
institutional resources under threat of demolition or deterioration.
·10.4 Historic resources as cultural tourism.Promote historic places and cultural tourism as
an economic development strategy.
·10.5 Adaptive reuse and sustainable development.Promote historic preservation as
sustainable development and encourage adaptive reuse of historic or older properties.
·10.6 History and cultural heritage.Support and encourage efforts to document and share the
cultural heritage and history of Hermosa Beach.
·10.7 Culturally inclusive planning.Ensure that historic preservation planning is culturally
inclusive and reflective of the unique background and diversity of neighborhoods in the city.
·10.8 Incentives and technical assistance.Provide expert technical assistance to owners of
potentially eligible and designated historic properties with tools and incentives to maintain
historic resources.
·10.9 Salvage architectural features or materials.Encourage the preservation or reuse of
historic architectural features on site or within the community.
·10.10 Archaeological and paleontological resources.Recognize the prehistory and history of
the city and strive to identify,protect,and preserve archaeological and paleontological
resources.
Fiscal Impact:
There is no fiscal impact associated with the recommended action.
Attachments:
1.Planning Commission Resolution 98-65
2.City Council Resolution 98-5937
3.City Council Resolution 98-1186
4.City Council Resolution 99-5980
5.City Council Resolution 99-5981
6.City Council Resolution 02-0616
7.Link to Historic Preservation Ordinance
8.Link to The California Office of Historic Preservation-Mills Act Program
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Respectfully Submitted by: Melanie Hall, Interim Associate Planner
Concur: Angela Crespi, Interim Community Development Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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City Council Hybrid Meeting
06-14-22 17:00
Agenda Name Comments Support Oppose Neutral
a) REPORT 22-0374 INFORMATION REGARDING THE CITY'S
HISTORIC RESOURCES PRESERVATION PROGRAM
(Interim Community Development Director Angela Crespi)
15 15 0 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented
will be shown.
Overall Sentiment
Agenda Item: eComments for a) REPORT 22-0374 INFORMATION REGARDING THE CITY'S
HISTORIC RESOURCES PRESERVATION PROGRAM
(Interim Community Development Director Angela Crespi)
Overall Sentiment
Dean Nota
Location: 90254, Hermosa Beach
Submitted At: 2:57pm 06-14-22
I am an architect and have been a resident of Hermosa Beach since 1977. The original preservation ordinance,
enacted in 1998, was a good beginning to a process that needs to be taken to the next level, if the historic fabric
of this City is to be preserved. Back in 1998, I reviewed a list of historic buildings that was identified by a City
consultant, that needs to be revisited for completeness. As I understand it, the list was assembled primarily from
a "windshield survey" by the consultant. Windshield surveys are visual, cursory at best, and do not reflect the
scope of the criteria for historic designation specified in the 1998 ordinance. Given the current, rapid replacement
of existing buildings in the South Bay by newly constructed developments, the need for a thoughtful update to the
ordinance is warranted. I urge the City Council to devote resources to the revitalization of our historic
preservation process.
506
Barbara Force
Location: 90254, Hermosa Beach
Submitted At: 12:07pm 06-14-22
As a resident and property owner in Hermosa beach since 1980, I wish to keep Hermosa as the lovely coastal
city we have had. I support
being able to establish landmark status on older homes. I feel the fees that are imposed just to look into this
status are outrageous.
I support looking into this process, and having a review, especially regarding Marsha Majka's historic corner
home. It certainly adds
to the neighborhood and I would like to see it remain as it is. Many homes in Hermosa have been in the same
family for decades and are kept up and add to our history.
Anna Taylor
Location: 90254, Hermosa Beach
Submitted At: 11:14am 06-14-22
As a 50ish year Hermosa Beach resident and property owner, I am in support of reviewing our process for
declaring residential properties as Historical Landmarks. I would like to keep Hermosa Hermosa as best we can.
We have had wonderful events and we have fought wars together (i.e. oil drilling) to keep Hermosa Hermosa.
That is who we are.
In addition, there are a few opportunities for us to preserve reminders of our past. That would include residential
Historical Landmarks. I believe that we should facilitate homeowners who voluntarily offer their properties for this
purpose. Some have spent their lives and money preserving what our ancestors built. Those homes and their
stories will keep Hermosa Hermosa!
John Burk
Location: 90254, Hermosa Beach
Submitted At: 10:47am 06-14-22
Please preserve 2204 Monterey Blvd; I am in favor of saving the older homes
Elka Worner
Location: 90254, Hermosa Beach
Submitted At: 9:30am 06-14-22
The city of Hermosa Beach should do everything in its power to incentivize historic preservation, especially of
residential properties. Charging Marsha Majka a $4,416 fee to designate her home a historic landmark sends the
wrong message to homeowners. It’s no accident that Redondo Beach has 104 Mills Act historic homes. They do
not charge fees for residential landmark designations. The HB council should waive Majka’s fee and those of
future conservationists.
Sent from my iPhone
Dean francois
Location:
Submitted At: 12:34am 06-14-22
Considering the unusual circumstances with this application, especially since as I understand the property tax
reduction will not amount to much, the fees should be reduced or waived.
However, the historical designation process clearly needs to be revised to make the fees reasonable and waived
in circumstances where there is hardly any tax reduction. We should look at ways to streamline the process to
reduce the city costs, possibly utilizing the historical society for some of the initial application and reviews and
delay other fees until designation has been granted.
I served as a Preservation Commissioner in Redondo and this city should be used as a good example of how a
program is set up and works. Redondo has numerous landmarks and complete neighborhoods set up as
historical resources. I would support and be happy to help work on such a project.
Geoff Yarema
507
Location: 90254-2630, Hermosa Beach
Submitted At: 7:52pm 06-13-22
Members of the City Council: please consider waiving the fees in connection with the application Marsha Majka is
seeking to file for historic designation of her home on Monterey Boulevard. Supporting this request is a petition
previously delivered to the city manager, gladly signed by 44 neighbors (a month ago, in less than 48 hours),
speaking for hundreds of others. I look forward to offering thoughts by zoom tomorrow evening on action items
you might consider in response to the staff report that will be before you. Thank you for your consideration.
Wayne Halford
Location: 90254, Hermosa Beach
Submitted At: 4:34pm 06-13-22
I am deeply saddened to watch our beach town disappearing one house at a time being replaced with two and
three-story houses. This small-town atmosphere with its single-story beach homes is what convinced me to buy
here 28 years ago. Government established an ordinance to supply incentive to people living in these vintage
homes to help maintain and preserve the craftmanship used back in the day. Please give extra consideration to
the very special house at 2204 Monterey Blvd. on the corner of Park Ave.; it is also a landmark location being one
of the oldest, original, curved streets in town. It is truly one of the cutest homes in Hermosa, I love the front
sunroom constructed with extra-large cinder blocks and wood shingles with vintage casement steel small paned,
opening windows.
Please consider a way to make this affordable for Marsha Majka, in light of her fixed income, to make it possible
for her to leave a bit of history to Hermosa Beach.
Thank you.
kathy dunbabin
Location: 90254, hermosa beach
Submitted At: 4:07pm 06-13-22
I support a Historic Resources Preservation Ordinance so that a homeowner can declare their home a historic
property only if the home owner initiates the process. Understanding that there could be fees, the fees to
process the request should be reasonable.
Amy Irwin
Location:
Submitted At: 3:21pm 06-13-22
Dear City Council,
I am writing in favor of the City Council’s Historical Resource Preservation Program to consider waiving of fees for
historical designations in Hermosa Beach. I have always hoped some Hermosa Beach homes could be deemed
as Historic Preservation sites for current and future residents and visitors to enjoy seeing. Our city’s charm and
past history is something I feel is important for future generations to be able to see. I am hoping that you will
consider making Marsha Majak’s little cottage on Monterey and Park eligible for Historic Preservation without
requiring her to pay fees that are not affordable to her. Thank you for your consideration.
Sincerely,
Amy Irwin
510 24th Place
Hermosa Beach CA
Ken Irwin
Location:
Submitted At: 2:33pm 06-13-22
Honorable Hermosa Beach City Council:
It would be a shame for historical homes in Hermosa Beach, whose owners wish to designate them for
preservation, to not be protected from demolition because of too many hoops to jump through in the process or
the financial burden that prevents an application from ever being submitted! Clearly there are fewer and fewer
structures with historical significance remaining in HB these days due to rebuilding in the beach communities.
508
Knowing that, and the lack of ANY private homes that have been designated as historical in HB since City
Council’s 1998 resolution, it seems that it would be in the City’s best interest and within HB City Council’s duties
to review this program and it’s application/fee structure to make it more beneficial or less of an onus to the
homeowners who might be considering foregoing any future benefits and “leaving” their homes to HB as a
historical landmark the citizens can be proud of and enjoy forever!!! Granted the process does have significant
costs associated with it ( thanks Staff report) but to this citizen and his family, they are costs that we feel should
be shared, all or in part, by the City of HB and its citizens based on the benefits we gain by the historical
preservation of a portion of our Hermosa Beach identity!!! The state property tax reduction program for historical
structures an owner might receive if HB chose to participate, as The Staff report points out, can, I believe, only be
considered once a local historical designation is on the books. This does little to promote initial homeowner
interest or lessen the initial financial outlay of the HB application process. Our understanding is that the home on
the NW corner of Monterey Blvd. & Park Ave. is currently a prime example of why we have no officially
designated historical homes in Hermosa Beach, the HB application fee and process obviously isn’t working!!!
Thanks for your efforts on this topic and every other concern the City Council and Staff fully addresses on our
behalf!!
Kenneth Irwin
Dency Nelson
Location: 90254, Hermosa Beach
Submitted At: 1:48pm 06-13-22
This issue is in front of you tonight due to the desire of our friend & neighbor of over 40 years, Marsha Majak, to
have her beloved home of almost 50 years declared eligible for Historic Preservation. She isn't looking for
property tax reduction for herself, which is what is one of hte things provided via the Mills Act, as her taxes are
already very low. What she does want is for her beautiful home to be preserved for others to enjoy after she is
gone. Most homeowners who live in similar dwellngs would want their beneficiaries to do whatever they want for
the highest financial gain once the property passes on to those beneficiaries, and that almost always means
tearing down and replacing the dwelling with something big and new. That has been the case with almost every
wonderful little bungalow or even larger, older homes here in Hermosa Beach. Because of that we lose precious
reminders of our past, like the beautiful little beach cottage that is Marsha's. Marsha is in a position that all she
wants is to ensure that her little piece of Hermosa history remains on the corner of 24th & Park for generations
after her to enjoy, but the fees imposed by the process make it impossible for her to do so. There must be a
better way for those like Marsha to achieve the guarantee that ther homes will receive the designation they
deserve, to protect them from demolition by a future owner, and to preserve these dwellings for the right
homeowner to proudly own and continue to preserve. I look forward to the discussion of this agenda item to learn
more about a possible solution for Marsha and for what I'm guessing will be the very few others who will want to
put a lock on future develplment of their historic property, preserving it for future Hermosans and visitors to
remeber as a chapter of our past. Thank you for considering this matter.
Moira Nelson
Location: 90254, Hermosa Beach
Submitted At: 12:05pm 06-13-22
As more and more of Hermosa Beach's costly residential properties undergo development, the small, charming
beach cottages of the city's historic past, evidence of its one-time unique, small-town personality, are quickly
disappearing. Any owners of the few remaining early homes who wish to preserve and maintain these vestiges of
Hermosa's past should be aided and encouraged in doing so, for the benefit of us all, as they add interest and a
special kind of beauty to our streets, perpetuating one of the distinct pleasures of living here and thus adding
value to their neighborhoods.
Lee Hennis
Location: 90254, HERMOSA BEACH
Submitted At: 9:07am 06-13-22
I support preserving history. Homes like Ms. Majka that are well maintained are definitely worth preserving. I do,
however, find the fee the city charges to get a historic designation a bit high. Many of these types of homes have
been owned by the same person/family for a number of years and the owners are typically elderly and/or retired.
The council should consider a fee based on the owner's income vs. a single value.
Thank you. Lee Hennis.
509
Reinburg Sally
Location: 90254, Hermosa Beach
Submitted At: 4:46pm 06-12-22
I definitely support reviewing this process and allowing residents to have their home declared a Historical
Landmark, but definitely only if it is their wish.
510
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0373
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
APPROVAL OF ADDITIONAL REFINEMENTS TO TEMPORARY OUTDOOR
PERMIT PROGRAMS RELATED TO MAXIMUM ON-STREET DECK AREAS AND
DISCUSSION OF CHANGES TO PIER PLAZA ENCROACHMENTS
(Environmental Programs Manager Doug Krauss)
Recommended Action:
Staff recommends City Council:
1.Approve the implementation of short-term refinements to the outdoor dining programs related
to establishing maximum areas of on-street dining decks; and
2.Discuss and provide staff with feedback on potential changes to the temporary encroachment
areas for Pier Plaza businesses.
Executive Summary:
At its May 24,2022 meeting,City Council approved an extension through January 1,2023 of the
temporary outdoor dining and downtown lane reconfiguration programs that were created in
response to the COVID-19 pandemic.Council also approved several program refinements to improve
the program in the short-term.During the discussion,Council directed staff to seek additional policy
refinements to address the impact on parking availability caused by the on-street dining decks.Staff
recommends City Council approve additional program refinements to establish maximum on-street
deck sizes to provide additional parking availability.
Background:
Expanded Outdoor Dining and Retail
The City has long supported and encouraged outdoor dining on private and public property to
supplement indoor operations.With the onset of the pandemic and related health orders,businesses
were limited to conducting business outdoors.Recognizing this hardship,City Council approved a
program to allow expanded outdoor dining and other commercial activity.The City also suspended
zoning and parking requirements to allow outdoor dining on private property and established a
temporary encroachment permit program to allow encroachments into sidewalks,public streets,and
Pier Plaza.Both the private property programs and encroachment program (together,the “Outdoor
Permit Program”)include a basic set of guidelines addressing business hours,cleanliness,and
maintenance.
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The City issued over 60 permits during the term of the Outdoor Permit Program in a variety of
commercial locations.Initially,City Council allowed these uses without consideration of any
encroachment area rents or reimbursement of lost parking meter revenue.Pursuant to the urgency
ordinances that established and later extended the Outdoor Permit Program,the program remains in
effect until terminated or superseded by ordinance.In June 2021,Council approved extension of the
pilot program through December 31,2021 and authorized implementation of a reapplication process
for outdoor dining areas.
At its December 14 2021 meeting,Council approved an extension of the programs through May 31,
2022.At its January 25,2022 meeting,Council discussed implementing new fees for the temporary
outdoor dining encroachments and approved a fee of $1.50 per square foot per month to begin
March 1.Four businesses decided to remove their on-street decks,one modified their deck area,
and one sidewalk dining area was removed.None of the extended encroachment areas on Pier
Plaza have been removed.Program revenues for the temporary encroachment areas are
estimated to be approximately $400,000 annually.At its February 8,2022 meeting,Council also
approved reinstatement of the prior permanent encroachment fees.These fees generate
approximately $280,000 annually.
Lane Reconfiguration
At the May 12,2020 City Council meeting,City staff presented an item describing a concept to
repurpose sections of public right-of-way to improve multimodal traffic safety and expand physical-
distancing options for the public and businesses per Los Angeles County Health orders related to the
COVID-19 pandemic.The City Council moved quickly to accommodate these programs and staff
developed guidelines based on information gathered from existing programs in other cities and
internal review of policies and regulations.
City Council directed staff to work with the Economic Development Committee (EDC)to explore
aspects of the program that could directly benefit local businesses.At meetings in August and
September 2020,Council directed staff to move forward with designs of lane reconfiguration
concepts for both Hermosa Avenue and Pier Avenue.These concepts included removing one through
vehicle lane in each direction,addition of a bike lane,installation of a number of new on-street ADA
accessible parking spots,and associated signage and pavement markings (hereafter,the “Downtown
Lane Reconfiguration Program”).At the October 27,2020 meeting,Council awarded a contract to
perform the work.Work began in early January 2021 and was completed by January 16,2021.As
directed by Council,the lane reconfiguration was to be in place for at least six months starting from
the completion date of the work and was to,therefore,operate until July 2021.At the July 13,2021
meeting,Council approved a Resolution extending the Downtown Lane Reconfiguration Program
through the end of the year.In December 2021,Council approved an extension of the program
through May 31, 2022.
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Past Council Actions
Meeting Date Description
June 9, 2020 Approved Ordinance 20-1410U allowing temporary permit program
for outdoor dining in response to pandemic.
July 14, 2020 Directed staff to proceed with development of lane closure plans.
June 22, 2021 Approved extension of the outdoor permit program through
December 31, 2021.
July 13, 2021 Approved Resolution authorizing extension of lane
reconfigurations.
October 26, 2021 Approved development and implementation of permanent versions
of these programs.
December 14, 2021 Approved development of permanent programs, and extension of
temporary programs through May 2022
January 25, 2022 Discussion and approval of new fees for temporary encroachments
February 8, 2022 Approved reinstatement of existing fees for permanent
encroachment areas
May 24, 2022 Approved Urgency Ordinance extending program and new program
policy refinements
Discussion:
At its May 24,2022 meeting,City Council approved an urgency ordinance extending the programs
through January 1,2023 along with eight program refinements to be implemented immediately.
These refinements related primarily to maintenance and aesthetic concerns with the decks.At this
meeting,Council also provided feedback to staff on the general progress of the ongoing development
of a permanent version of these programs.
City Council further directed staff to address the ongoing concerns over limited parking availability by
exploring ways to reduce deck sizes or increase utilization of existing decks to ensure optimal
parking conditions for the community and visitors.Staff now recommends implementation of a policy
establishing limits on the number of parking spots an on-street deck can use.Specifically,this would
limit decks to:
1.An individual business’s on-street outdoor dining encroachment may only occupy a maximum
of two parallel on-street parking spaces or three head-in parking spaces; and
2.In cases where the on-street outdoor dining encroachments are located entirely in front of the
business frontage and no permission for use is required from a neighboring property,a
business may occupy a maximum three parallel on-street parking spaces or four head-in on-
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street parking spaces.
Staff discussed this recommendation internally and with local business stakeholders and reassessed
all on-street dining decks to ensure the effectiveness of this policy refinement.This program
refinement would apply to shared deck areas,as well as individually-operated decks.The change
would address many of the ongoing parking availability concerns in the short-term and would include
an immediate notice to the affected businesses with a deadline of July 15,2022 to remove or modify
existing decks to achieve compliance with this policy.Staff would continue to monitor existing and
new deck installations to assess the effectiveness of this change to help inform the ongoing
development of the permanent versions of these programs.
Staff also requests City Council feedback on the temporary encroachment areas provided for Pier
Plaza businesses.Discussions with local businesses and stakeholders have raised equity concerns
between the various temporary dining areas.These concerns include the amount of additional public
right-of-way being made available and the fee structure applied to these encroachment areas.
Discussions have included the possibility of reducing these temporary expanded encroachments or
increasing the fees to an amount similar or equal to the fees applied to the previous permanent
encroachments. These historic encroachment fees are shown in the table below:
Location and Hours Fee per Square Foot
Pier Plaza, open after midnight $5
Pier Plaza, closed before midnight $2
Outside of Pier Plaza or snack shop $1
Staff requests City Council feedback regarding the additional refinements and possible direction to
bring back more information or an agenda item at a future City Council meeting date.
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.
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 Goals and Policies are listed below:
Governance Element
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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.
Policy:
·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.
Policy:
·7.1 Safe public rights-of-way. Encourage that all public rights-of-way 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:
The $1.50 per square foot fee approved by Council in January is estimated to generate
approximately $400,000 annually.If approved by City Council,establishing limits on the number of
parking spots that an on-street deck can use would impact the square footage of the decks.The
impact to the estimated encroachment fees in currently unknown.A revised 2022-23 revenue
estimate would be provided with the 2022-23 Midyear Budget.
Additionally,reduction of temporary encroachment areas on Pier Plaza or an increase of fees for
these areas would also impact revenue,although exact details are not known at this time.More
information can be provided pending Council’s discussion and direction.
Attachments:
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1.Link to June 9, 2020 Staff Report
2.Link to July 14, 2020 Staff Report
3.Link to June 22, 2021 Staff Report
4.Link to July 13, 2021 Staff Report
5.Link to October 26, 2021 Staff Report
6.Link to December 14, 2021 Staff Report
7.Link to January 25, 2022 Staff Report
8.Link to February 8, 2022 Staff Report
9.Link to May 24 Staff Report
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
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City Council Hybrid Meeting
06-14-22 17:00
Agenda Name Comments Support Oppose Neutral
b) REPORT 22-0373 APPROVAL OF ADDITIONAL REFINEMENTS TO
TEMPORARY OUTDOOR PERMIT PROGRAMS RELATED TO
MAXIMUM ON-STREET DECK AREAS AND DISCUSSION OF
CHANGES TO PIER PLAZA ENCROACHMENTS
(Environmental Programs Manager Doug Krauss)
4 1 1 1
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented
will be shown.
Overall Sentiment
Agenda Item: eComments for b) REPORT 22-0373 APPROVAL OF ADDITIONAL REFINEMENTS TO TEMPORARY OUTDOOR
PERMIT PROGRAMS RELATED TO MAXIMUM ON-STREET DECK AREAS AND DISCUSSION OF CHANGES TO PIER PLAZA
ENCROACHMENTS
(Environmental Programs Manager Doug Krauss)
Overall Sentiment
Raymond Dussault
Location: 90254, Hermosa Beach
Submitted At: 2:57pm 06-14-22
I am 100% in support of all of the extended dining decks. Every single one is a boon to the culture of the
community. The deck below Tower 12, Loreto Plaza, turned a previously empty space, unsettling after dark,
dominated by windblown trash, smokers and tokers, into a vibrant outdoor dining experience with more than
ample - even despite my COVID weight gain - walkways on either side. The Baja Sharkeez Group was the first
business to take a massive risk and invest significant money to create a pleasing space out of the space they
were allowed. And, again, I use their walkway to traverse through all of the time. And, after dark, it's a lot less
unsettling to move through the space when it's full of families dining.
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Frank Hallstein
Location: 90254, Hermosa beach
Submitted At: 2:46pm 06-14-22
TO: City Council
This comment is in regards to Upper Pier Ave. Dining Decks, as you know the downtown area of Hermosa has
close to 800 parking spaces and upper Pier Ave from Hermosa Ave. to Valley dr. has 125 spaces, When upper
pier was beautified an extensive report was done ( you can google " Upper Pier Avenue Committee which
required additional parking (none of which was added and others removed before pandemic days) I would say
these requirement were in conjunction with coastal commission rules , These extensions keep creeping up on us
and none of the non dining deck businesses are given much notice . We have been gracious with the situation
while suffering the financial losses , we all have bills ( Rent , utilities , insurance ..business ..health..automobile
etc.) So I say to all the restaurants on upper Pier your welcome !
So in the name of being Fair & equitable bring upper Pier ave. back to what it was . Also not mentioned in the last
meeting and from what I hear was not presented to the council is the letter from a business requesting the
removal of a dining deck in front of his business sernt May 3rd which was at that time was on the hands of Doug
Krauss , the letter states that his signed letter of approval with the duration being until 12-31-2021(per "Temporary
dining/Retail permit application " July 98,2021 update) as of today June,14,2021 he is not giving his approval and
that is why he sent the letter , this needs to be addressed ,,,thank You ,,,Frank Hallstein (Hermosa Lock & Safe)
(310) 951-2569
Skyler Simmons
Location: 90254, hermosa beach
Submitted At: 1:34pm 06-14-22
I think the extended patios and dining decks are a great addition and set us apart from the other beach cities
considering our visitors can leave a restaurant and in seconds, find themselves on our beautiful beach. What
they have done in Riviera village has completely turned that area around so backtracking here in Hermosa would
be detrimental to the businesses and the community.
An additional observation I have is that all the businesses on the pier should have equal encroachment rights and
currently, they do not. I don't understand why certain establishments are allowed to have additional
encroachment areas while others are not? Sharkeez has an entire second floor, Palmilla has a roof-top deck,
Brews Halls has the third patio in front of the bank, Tower 12 has completely taken over Laredo plaza and Playa
Hermosa has a third patio adjacent to Vistas parking lot. Considering the parking situation, why are some
establishments allowed to have so many extra seats?
Please allow the awesome encroachments to continue, just make it fair across the board.
Dean francois
Location:
Submitted At: 12:58am 06-14-22
It is long overdue to put some maximum deck areas and encroachments on to public plazas. But again it looks
as if we are forgetting that one establishment has been able to encroach on the complete area of Loreto Plaza.
This is a public plaza and an extension of pier Plaza and the public needs to have fairness and equitable
distributions on the encroachments.
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From:Raymond Dussault
To:City Council; City Clerk; Mayor Michael Detoy; Suja Lowenthal
Subject:Dining Decks and unnecessary regulation
Date:Tuesday, June 14, 2022 2:37:04 PM
Dear Council:
Like most every resident, I support all the outdoor dining culture that has exploded in the
wake of COVID. The patios have become not only an extension for the restaurant space but an
extension of all of our neighborhoods. It is common now to find friends and family enjoying
the extended dining decks and stopping to say hello.
Since the council began indicating these extensions were likely to be made permanent, they
have become even nicer with restaurants investing in their space to enhance their appearance.
This is costly and I encourage you to not set this back with unnecessary and burdensome
regulations.
I remember when the first extensions were approved and while we - restaurants and residents -
were appreciative, I could never quite comprehend the last minute tack on of requiring
restaurants to pack all of their tables and chairs into cramped establishments at 11PM. The
way I remember it, no one even asked what the purpose of this bizarre controlling rule was
for.
I implore you, please, if you have the urge to tack on even more restrictions and regulations,
please ask yourselves:
Why is this rule needed?
What PROBLEM does it solve?
Is this a problem that actively exists or just one we think "might, possibly, maybe"
happen in a wild worst case scenario?
If I put myself in the role of business owner, is this burdensome in ways I haven't
thought of? (Like, have I envisioned for a single second where I expect businesses to put
all this furniture?)
Making rules just for the sake of making rules is not governance, it's obstructionism.
Thank you for your time and please attach this to the agenda.
Sincerely,
Raymond Dussault
--
Raymond Dussault33 North Ventures, Inc.Hermosa Beach, CA 90254Phone: (916) 205-1844
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UPPER PIER AVENUE COMMITTEEFinal Report
Hermosa Beach, CaliforniaMarch 25, 2008
SUPPLEMENTAL email
for Item 14.b
520
UPPER PIER AVENUE COMMITTEEFinal Report
I. Introduction
In June 2006, work crews from theHermosa Beach Public Works Departmentbegan the trial process of re-striping PierAvenue from four lanes to two. TheCommunity’s response to the trial was vocaland immediate. Letters and phone callspoured into the City and almost every one,and whether favoring the changes or railingagainst them, all invariably asked the samequestion - Why is the City doing this?The simple answer is that monies wereavailable to improve and fix long-standingdrainage and safety issues that plagued PierAvenue, and to their credit, our PlanningDepartment saw an opportunity to improvePier Avenue and looked to the City’sR/UDAT Implementation Plan (1994) forguidance on how best to proceed. TheImplementation Plan under “Street SectionImprovements” states at Page II-23: “Convert2lanes of traffic each way to 1 lane of trafficeach way. Transition to be made west ofgreen belt.” And that’s what the PublicWorks Department did.
This incident highlighted a problem thathas the potential to change Hermosa Beachinto someplace other than the seaside villageweknow and love. The striping issuedemonstrated that Hermosa Beach does nothave a well-articulated vision of the future forUpper Pier Avenue. But this problem isnothing new – the October 1992 R/UDATreport stated one of the primary reasons forengaging in the R/UDAT process was that“Hermosa Beach desperately needs toformulate a shared vision of its future.”
Stated simply,the striping issue illustratedthere was a planning gap for the development
UPAC – Final Report Page 1
Pier Avenue, a focal point through the generations
Present Day Community Center, formerly a Public School
521
of Upper Pier Avenue left after the R/UDAT planning process ended in the early 1990s. In orderto bridge this gap, the City Council commissioned the Upper Pier Avenue Committee (“UPAC”)to examine the entire ecosystem on Upper Pier Avenue. The Council asked UPAC to analyzealternatives and build community-consensus about the future development of Upper PierAvenue.
The UPAC brought the Community into direct contact with the City’s decision-makers andthe professional staff. Throughout the process, residents had the opportunity to express theirdesires and concerns about the future of Upper Pier. Towards this end, the Committee conductedtwo separate “Town Hall” meetings, both of which were standing-room-only events. The UPACsurveyed and interviewed businesses on Upper Pier, as well as the property owners, to solicittheir input and understand their concerns. The UPAC gathered the input from the community, professional staff, and other experts andanalyzed the available alternatives. The Committee understands that there will always beconflicts and disagreements among residents, businesses, and City Officials, but the Committeeworked very hard to find common ground between the various interested groups and set acourse of forward action for the City.
One final word about this report - this is an Executive Summary of the process UPACengaged in to develop its recommendations for Upper Pier Avenue. This report is intended tohighlight the Committee’s “big picture” recommendations and is not designed to recount theminute details of the Committee’s analysis. More detailed information can be found in theassembled minutes and sub-committee reports.
II. UPAC Mission
The City Council commissioned the UPAC to investigate the entire ecosystem of Upper Pierand recommend guidelines for its future development.
The Committee was also guided by the Hermosa Beach General Plan, which states its goal:“Protect and maintain the small town beach community atmosphere of Hermosa Beach.”From this guidance, UPAC determined its Mission Statement to be:
“To develop the vision for a Specific Planning Area on Upper Pier Avenue based onresearch, consultation with design and planning professionals, and community input.”
Based on these guiding principles, the UPAC engaged in a comprehensive, data-basedanalysis of Upper Pier Avenue. In the end, the recommendations in this report reflect theconsensus of the Committee based on Community input and preferences.
UPAC – Final Report Page 2
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III. Organization
The Council designated two City Council members (Kit Bobko & Pete Tucker), two PlanningCommissioners (Pete Hoffman & Ron Pizer), and two Public Works Commissioners (DanMarinelli & Janice Brittain) to serve on the UPAC. At its first organizational meeting, the six standing UPAC members voted increase theCommittee’s membership to eleven. Twenty-seven members of the public applied for selection.At its February 2007 meeting the Committee elected Ken Klade, Larry Peha, Dean Nota, KimMacMullan and Jerry Gross to join the UPAC.
All members of the Committee, both elected and nominated, had equal votes on all matters.Every member of the Committee participated on at least one Sub-Committee.
IV.Methodology
From the outset, UPAC resolved to base its recommendations on analysis and data asopposed to opinions and supposition. The Committee made a concerted effort to reachconsensus among its members, and to solicit as much community input as possible.
In order to accomplish this, the Committee conducted a 6-week survey of residents andvisitors to Upper Pier Avenue in June-July 2007. There were a total of 571 responses to thesurvey,of which 479 were from Hermosa Beach residents. (405 surveys were completed on-line,74 on paper.) The Alliance Consulting Group and CIDR Systems compiled and analyzed thecollected data and presented their findings to the Committee on August 1, 2007.
The survey revealed that an overwhelming number of respondents favored development ofan Upper Pier streetscape project, with new landscaping, textured sidewalks, improved signage,etc.Residents also favored widening the sidewalks, and corresponding improvement of thepedestrian-friendly atmosphere on Upper Pier. Nearly three-quarters of residents supportedmixed-use development on Upper Pier.
The Committee also met with business owners on Upper Pier in two workshops in October2007 to gather their feedback and input.
UPAC – Final Report Page 3
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V. Analysis
The Committee determined the best, most efficient way to analyze the issues involved withUpper Pier Avenue would be to divide the project into four sub-committees: (1) traffic, circulation &parking; (2) urban design and streetscape; (3) land use and zoning, and; (4) economic development.
A. Traffic, Circulation & Parking
City Councilman Peter Tucker, Public Works Commissioners Dan Marinelli and JaniceBrittain, and Mr. Jerry Gross comprised the Traffic, Circulation & Parking sub-committee (“TrafficSub-committee”). The Traffic Sub-committee tackled perhaps the most highly visible, and potentially divisive,aspect of the Upper Pier project. In fact, it was the City’s decision to re-stripe Upper Pier Avenuefrom four lanes to two that was one of the chief reasons the City Council decided to form theUPAC in the first place.
Pier Avenue is the main east-west arterial in downtown Hermosa Beach, with the averagedaily traffic counts ranging from 11,000 to as high as 19,000 vehicles per day. During peak loadhours, there are approximately 2,000 vehicle trips on Pier Avenue. The Traffic Sub-committeefound that reducing the Pier Avenue to only one lane in each direction (i.e., two-lanes) wouldintensify delays during the street’s peak-use periods.
The survey and feedback the UPAC gathered revealed that Hermosa residents prefer a four-lane configuration on Upper Pier Avenue. Many residents expressed the opinion that Upper PierAvenue was the major thoroughfare through the City, and it was important to maintain trafficflow on it during peak use times. Residents also felt that reducing Pier Avenue to two laneswould cause unnecessary congestion during peak use times with the unwanted side-effect offorcing traffic onto neighboring residential streets.
Residents and businesses alike also expressed a desire for increased parking options on UpperPier Avenue. The Traffic Sub-committee’s proposal results in no net-loss of parking on PierAvenue.
UPAC – Final Report Page 4
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The Traffic Sub-committee also took into consideration the residents’ express desire for abeautification (streetscape) program on Upper Pier, and the express preference for widening ofthe sidewalks.
Based on these considerations, the Traffic Sub-committee made the following recommen-dations to the UPAC, which the full Committee adopted. The recommendations are as follows:
Implement streetscape program for Upper Pier Avenue with pedestrian safety a priorityMaintain 4-lane configurationWiden sidewalks to create a more pedestrian-friendly environment on Upper Pier Avenue(from existing 10 feet to approximately 14 feet)Provide landscaped median islandMaintain diagonal parking on north side of Pier Avenue from Valley Drive to ManhattanAvenueConvert diagonal parking to parallel parking on south side of Pier Avenue from ValleyDrive to Manhattan AvenueReconfigure pedestrian crossings on Pier Avenue with “bulbs” to create pedestrian refugesand enhance safe pedestrian crossingCreate new “green space” at north and south sides of Manhattan Avenue where itintersects with Pier AvenueMaintain diagonal parking on both sides of Pier Avenue from Manhattan Avenue toHermosa AvenueCreate an eastbound “transition” lane from Hermosa Avenue to Pier AvenueImplement a “scramble” pedestrian crossing at Pier Avenue and Hermosa Avenue.Utilize multi-space parking meters on Upper Pier Avenue
The Traffic Sub-committee made the following future recommendations for the City Councilto consider:
Explore existing opportunities for alternative parking (i.e., leased lots, valet services,shuttle services, etc.) In particular, valet parking for restaurants along Upper Pier Avenueon Thursday, Friday, and Saturday nights Consider changing 16 spaces on the east side of City Hall to 2-hour meters during theCity’s non-business hoursExploreadding 15 spaces to Oak Street (by leasing or purchasing an easement fromMarineland Mobile Home Park)Consider expansion of the existing parking lot on 14th Street (adding potentially 53additional spaces to the City’s parking inventory)Consider issuing special “mirror hanger” permits to employees at the downtown areabusinesses that would allow them to park away from the downtown area and congestedneighborhoods. This would potentially free almost 300 spaces for residential useExplore construction of a pedestrian overpass and/or gateway over the greenbelt where itcrosses Pier Avenue.
UPAC – Final Report Page 5
525
B. Urban Design and Streetscape
The two professional architects on the Committee, Dean Nota and Larry Peha comprised theUPAC’s Urban Design and Streetscape Sub-committee (“Urban Design Sub-committee”).
Upper Pier Avenue is, expectedly, dominated by the street that is wider than the Pacific CoastHighway. The right-of-way on Upper Pier Avenue is 10-feet wider than the State Highway. Thestreet has traditionally been a thoroughfare for residents traveling west from PCH, andalternatively as an arterial channeling commuters from the residential neighborhoods back to thehighway. Currently, Upper Pier has sporadic, poorly coordinated landscaping and single-storybuildings, which create a low, horizontal proportion to the street. The street lacks pedestrianamenities and scale, and subsequently suffers from weak pedestrian activity on a day-to-daybasis. Long crosswalks and poor signage also plague upper Pier Avenue. Indeed, a commonrefrain from residents is that they feel “unsafe” crossing Upper Pier Avenue, especially with smallchildren or pets.
And although some of these issues are a direct result of the large scale of Pier Avenue, thatsame scale presents unique opportunity for the development and design of the street. Forexample, one of the Committee’s main goals was to create a more pedestrian-friendlyenvironment on Upper Pier Avenue without reducing the number of traffic lanes. Fortunately,the width of the street allows for this.
The Urban Design Sub-committee recommended that the expansive views from Upper PierAvenue down to Pier Plaza should be maintained, along with the existing continuity of retailalong the bend of Pier Avenue to Hermosa Avenue. The Sub-committee identified the largeasphalt space at Pier Avenue and Hermosa as a place where the pedestrian experience (andsafety!) would be enhanced by a reduction in the scale of the crosswalk.
Additionally, the Sub-committee recognized an opportunity to bring consistency to thelandscaping and design from Hermosa Avenue to PCH, and to promote continuity in the urbandesign along the entire length of the street. The Urban Design Sub-committee also suggested that Upper Pier Avenue not be designedprimarily to accommodate automobiles, but rather as a shared use between automobiles andpedestrians.
Finally, the Urban Design Sub-committee recommended the City look for ways to preservehistoric buildings along Upper Pier Avenue to maintain the street’s unique “Hermosa feel.”
C. Land Use and Zoning
City Councilman Kit Bobko, Planning Commissioner Pete Hoffman, and architects DeanNota and Larry Peha comprised the Land Use and Zoning Sub-committee (“Land Use Sub-committee”). This sub-committee’s examined the land uses and zoning requirements for thedevelopment of Upper Pier Avenue.
UPAC – Final Report Page 6
526
Two considerations guided the Land Use Sub-committee’s analysis. First, the sub-committee took into consideration the location of Upper Pier Avenue in relation to the rest ofHermosa Beach.1 Upper Pier Avenue is the “heart” of Hermosa Beach, and it is located in one ofthe most densely populated cities in Southern California. This consideration led the Sub-committee away from recommendations that would increase the density and traffic on UpperPier Avenue. Instead, the Sub-committee’s recommendations further the idea of a small town“village center.” For example, the Sub-committee shied away from mixed-use residential uses onUpper Pier Avenue that would increase traffic and residential density in favor of mixed-usecommercial uses that would increase pedestrian traffic on the street.
The second consideration was based on guidance from the UPAC Mission Statement andthe City’s General Plan – to promote a pedestrian-friendly “village center” for Hermosa Beach.Making Upper Pier Avenue more pedestrian-friendly is not a mysterious process; people willnaturally walk more if useful destinations are close to their homes, and the environment is safe,interesting and pleasant. The Sub-committee (and Committee at-large) believes a diverse mix ofuses and useful destinations at the center of our community would facilitate a more walkableenvironment.
UPAC – Final Report Page 7
1 All of the properties fronting Upper Pier Avenue are zoned C-2 (“Neighborhood Commercial”). According to the HermosaBeach Zoning Ordinance, C-2 is zoned “to provide opportunities for a limited range of office, retail, and service commercial usesspecifically appropriate for the sale and character of the downtown – a resident and visitor serving pedestrian orientedshopping/entertainment district.” HBMC §17.26.020 B (2).
UPPER PIER AVENUE — YEAR STRUCTURE BUILT
527
With these considerations in mind, the Sub-committee looked for ways to promote a coherent“village center” retail sector serving local residents and visitors, and arrived at the followingrecommendations:
Analyze the C-2 (“Downtown Commercial Zone”) permitted use list and related signordinances in the context of promoting pedestrian-friendly, resident-serving, day time usesconsistent with the existing zone and General Plan designation Encourage commercial mixed-use with service-type industries on the second floor andgeneral commercial/retail on the ground floorRetain the 30-foot height limit (from existing grade), with a strong preference towards 2storiesImprove the visual aesthetics by limiting franchise architecture, promoting consistentstreetscaping, minimizing bulk, scale, and massing of any new buildings on the streetAnalyze existing parking requirements relevant to dis/incentives for redevelopmentand/or redesign of existing buildingsInsure Conditional Use Permit (“CUP”) policies on Upper Pier Avenue are consistent withcommunity oriented, resident serving uses – including standards for hours of operationand outdoor diningProvide incentives for retention, rehabilitation, and adaptive reuse of historic buildings
UPAC – Final Report Page 8
UPPER PIER AVENUE — ZONING DESIGNATIONS
528
Encourage “permeable” building facades to facilitate pedestrian-friendly uses/atmosphereon the streetAnalyze impact of proposed redevelopment of Civic & Community Center sites and PierAvenue frontages to insure consistency with UPAC design and development standards.
D. Economic DevelopmentTwo local Businessmen Ken Klade (Klade Gallery) and Jerry Gross (Branded Mortgage) andPlanning Commissioner Ron Pizer comprised the Economic Development Sub-committee.
The Economic Development Sub-committee started its analysis by conferring with localbusiness owners to understand their interests and concerns regarding UPAC. The Sub-committeemet with Upper Pier business owners twice to gather their input and insure their inclusion in theprocess.
The Sub-committee also met with the property owners to gather their input on the UPAC.
Additionally, the Sub-committee and UPAC utilized the previous report (2002) by theEconomic Development Committee to inform their analysis of the economic issues involved withUpper Pier Avenue.
Again, with an eye towards developing a pedestrian-friendly “village center” on Upper PierAvenue, the Sub-committee made the following recommendations:
Create an Economic Development Commission (“EDC”) to address commercialism onUpper Pier Avenue, PCH, and other areas of the CityExplore the use of professional consultants to assist the EDC in attracting “villagefriendly” businesses to Hermosa BeachCreate incentives for second floor professional services to create more opportunities forground floor, pedestrian-friendly retail uses
Additionally, one of the main concerns both the business owners and the property ownersvoiced during their meetings with the Sub-committee regarded “down-time” they would incurduring construction on Upper Pier Avenue. The Sub-committee and City Staff agreed tocoordinate with the businesses on Upper Pier to mitigate any negative effects of construction, andto provide a point-of-contact at the City who would be available to businesses during theconstruction phase.
UPAC – Final Report Page 9
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VI. Next Steps
The recommendations set forth in this Final Report represent more than a year of analysis,discussion and compromise by the UPAC. The Committee went to great lengths to gather andsynthesize data from residents, businesses, property owners, and staff.
With all of the above-considerations in mind, UPAC respectfully makes the followingrecommendations to the City Council:
1.Approve the UPAC’s Traffic, Parking and Circulation recommendations. a.) Authorize the Public Works Director to solicit Requests for Proposals to selectdesign consultants to prepare plans, specifications, and cost estimates for allstreet and landscaping improvements. (Note: The Committee recommendsutilizing architects Dean Nota and Larry Peha to serve on the SelectionCommittee along with Public Works Staff.)
b.) Direct the Public Works Commission to provide guidance in developingstreetscape/public facilities commensurate with the recommendations set forthin the UPAC Final Report.
c.) Direct Staff to report to Council within 180-days following the award of thedesign contract with preliminary plans, cost estimates, and designrecommendations.
2.Authorize the Director of Public Works to implement the “scramble” cross walk at theintersection of Pier Avenue and Hermosa Avenue.
3.Refer to the Planning Commission the UPAC report with guidance to develop zoning andparking guidelines to facilitate the goals articulated in UPAC’s Final Report. (Final reportregarding changes to the zoning code, parking, etc., to the City Council due within 9 months ofCity Council approval.)4.Create an Economic Development Commission.5. Maintain the UPAC as an advisory/ad hoc committee as required.
###
UPAC – Final Report Page 10
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0379
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
ADOPTION OF ECONOMIC DEVELOPMENT STRATEGY
(Interim Community Development Director Angela Crespi)
Recommended Action:
Staff recommends City Council:
1.Receive a staff presentation and public comments;
2.Approve a resolution (Attachment 1)adopting an Economic Development Strategy; and
3.Direct staff to begin work on identified first year implementation priorities.
Executive Summary:
At its April 28,2020 meeting,City Council approved the creation of the Economic Development
Committee with a two-year sunset date.Once formed,the earliest actions of the committee were to
form an Economic Development Stakeholders Advisory Working Group,comprised of business
representatives and commercial property owners,and to discuss urgent matters related to the
pandemic.Soon after,the committee directed development of an Economic Development Strategy as
specified in the Governance Element of PLAN Hermosa.
On May 2,2022,the Economic Development Committee held its final meeting at which the
committee considered,and approved,the Economic Development Strategy.The proposed strategy is
hereby presented for final adoption by the City Council.
Background:
The Economic Development Strategy is the result of two years of collective efforts by the Economic
Development Committee,Stakeholders Advisory Working Group,Community Development
Department staff,and City Manager’s Office to identify Economic Development objectives and
actions.Over the course of the last two years,the Economic Development Committee met monthly
and the Stakeholders Advisory Working Group met twice per month to explore and discuss Hermosa
Beach business-related topics.
An Economic and Market Study (Attachment 4)was prepared to inform the Economic Development
Committee and Stakeholders for preparation of the Economic Development Strategy.
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The resulting Economic Development Strategy (Attachment 2)includes 30 strategic actions.These
actions include steps that the City can take to enhance Hermosa Beach and strengthen the local
economy through beautification;code changes;and other pro-active steps to encourage success and
help our business partners as they serve and enhance quality of life in our community.
Past City Council, Commission, and Committee Actions
Meeting Date Description
March 4, 2020 A joint meeting of the City Council and Planning Commission
was held to discuss a vision for the Downtown District, among
other topics. At that meeting, it was suggested that a
subcommittee be formed, comprised of two City
Councilmembers and two Planning Commissioners to focus
on Economic Development.
April 21, 2020 Planning Commission selected Peter Hoffman and David
Pedersen to be appointed as Planning Commission
representatives to the proposed committee.
April 28, 2020 City Council established the Economic Development
Committee and selected Mary Campbell and Michael Detoy
to be appointed as City Council representatives, with a two-
year sunset date.
June 1, 2020 Economic Development Committee held its first monthly
meeting to begin work on short-term economic recovery goals
and long-term Economic Development goals to benefit the
Downtown and citywide business districts. At the first
meeting, the Economic Development Committee determined
that a Stakeholders Advisory Group be formed to represent a
variety of businesses and commercial districts.
September 28, 2021 City Council Received a One-Year Progress Report on the
Economic Development Committee and Economic
Development Strategy initial actions approved.
May 2, 2022 Economic Development Committee held its final meeting at
which the committee considered, and approved, the
Economic Development Strategy.
Analysis:
The Economic Development Committee and the Stakeholders Advisory Working Group identified 30
strategic actions in the Economic Development Strategy,including 10 priorities for implementation in
the first year.The strategic actions are divided into five categories:Citywide Beautification;
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the first year.The strategic actions are divided into five categories:Citywide Beautification;
Downtown;Municipal Code Amendments;Business Outreach;and City Economic Development work
program.
The Economic Development Strategy is a long-term plan,with strategic actions divided into short-
term (1st year),mid-term (2-3 years)or long-terms (3+years)implementation.If approved by City
Council,the Economic Development Strategy would become the work plan for implementation,
beginning with the identified action priorities.A list of Economic Development Strategy First-Year
Implementation Priorities is included as Attachment 3.
Implementation work would be completed by staff,the Hermosa Beach Chamber of Commerce and
Visitors Bureau,and occasionally with consultant assistance as described the Economic
Development Strategy.The Economic Development Strategy includes an action to report to the City
Council twice annually to monitor progress,prioritize actions,and consider new opportunities.This bi-
annual report would ensure that the Council and community are updated on Economic Development
Strategy implementation.
General Plan Consistency:
PLAN Hermosa,the City’s General Plan,was adopted by the City Council in August 2017.The
Economic Development Strategy supports several PLAN Hermosa goals and policies 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:
·6.1 Long-term economic development.Support the development and implementation of
long-term economic development strategies that seek to establish and keep new businesses
and a strong middle class in Hermosa Beach over the decades to come.
·6.2 Regional presence.Encourage economic development strategies that will make Hermosa
Beach a driving force and jobs center behind the regional economy of the South Bay region.
·6.3 Diversified economy.Encourage economic development strategies that allow the city to
move beyond reliance on its two main industries -accommodation and food service and retail
trade - and transform itself to a mature mix of economic activity and job opportunities.
·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.
·6.5 Creative economy.Prioritize strategies that will create an economy full of diverse talents,
trades and goods for the city.For long lasting economic success,a range of services,arts,
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entertainment and retail should be supported on all scales of the city’s economy.
·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.
·6.7 Retail base.Encourage economic development reflective of the character of Hermosa
Beach with small and medium scale retail development within Hermosa Beach in order to
create a stronger tax base and increase the City’s tax revenue.
Land Use Element
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 patterns.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.
·1.4 Diverse commercial areas.Promote the development of diversified and unique
commercial districts with locally owned businesses and job- or revenue-generating uses.
·1.5 Balance resident and visitor needs.Ensure land uses and businesses provide for the
needs of residents as well as visitors.
·1.8 Respond to unique characteristics.Enhance the unique character and identity of the
city’s neighborhoods,districts and corridors through land use and design decisions.Allow
policies and programs to be focused on each unique character area of the city.
Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach.
Policies
·3.1 Unique districts.Encourage the development of local and city-wide districts and
centers that address different community needs and market sectors and complement
surrounding neighborhoods.
·3.3 Diverse retail and office centers.Provide incentives to transform existing single-
use commercial properties that are accessible into retail destinations by adding a diversity
of uses,providing new pedestrian connections to adjacent residential areas,reducing the
visual prominence of parking lots,making the centers more pedestrian-friendly and
enhancing the definitions and character of street frontage and associated streetscapes.
·3.4 Emerging employment sectors.Strive to create districts that support increased
employment activity, particularly for growing or emerging economic sectors.
·3.5 Compact office formats.New employment uses should be designed in a compact
format with minimal front setbacks from the street,typical lease spans of 40 feet or less,
and where feasible, combined with other commercial uses.
City of Hermosa Beach Printed on 9/12/2022Page 4 of 5
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Staff Report
REPORT 22-0379
Fiscal Impact:
There is no fiscal impact associated with recommended action to adopt the proposed Economic
Development Strategy.Any costs associated with implementation would be included in the annual
budget adoption process.Adoption and implementation of an Economic Development Strategy would
be expected to increase City revenues and strengthen the local economy.
Attachments:
1.Draft Resolution
2.Economic Development Strategy-Resolution Exhibit A
3.Economic Development Strategy First Year Implementation Priorities
4.Economic and Market Study by Economic and Planning Systems, Inc.
5.Link to March 4, 2020 City Council and Planning Commission Joint Meeting Agenda
6.Link to April 21, 2020 Planning Commission Agenda
7.Link to April 28, 2020 City Council Staff Report
8.Link to June 1, 2020 Economic Development Committee Staff Report
9.Link to September 28, 2021 City Council Staff Report
10.Link to May 2, 2022 Economic Development Committee Staff Report
Respectfully Submitted by: Christy Teague, Senior Planner and Business Liaison
Concur: Angela Crespi, Interim Community Development Director
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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Page 1 of 2
RESOLUTION NO. 22-XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA ADOPTING AN ECONOMIC DEVELOPMENT STRATEGY
THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
DOES HEREBY RESOLVE AS FOLLOWS
Section 1. Findings.
A. The Economic Development Committee was established by the Hermosa Beach
City Council at its meeting held on April 28, 2020.
B. By direction of the Economic Development Committee, an Economic Development Strategy
has been prepared including actions intended to enhance the City and strengthen the local economy
through Citywide Beautification, Downtown Initiatives, Municipal Code Amendments, Business
Outreach, and a City Economic Development work program.
C. The Economic Development Committee approved the Economic Development
Strategy and recommended the City Council adopt the Economic Development Strategy at its
meeting held on May 2, 2022.
SECTION 2. Based on the foregoing findings, the City Council hereby approves the
Economic Development Strategy attached hereto as Exhibit A and incorporated herein by
reference.
SECTION 3. This Resolution shall take effect immediately. The City Clerk shall certify to
the passage and adoption of this Resolution; shall cause the original of the same to be
entered among the original resolutions of the City Council; and shall make a minute of
the passage and adoption thereof in the minutes of the City Council meeting at which the same
is passed and adopted.
PASSED, APPROVED and ADOPTED this 14th day of June, 2022.
____________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California
ATTEST: APPROVED AS TO FORM:
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Page 2 of 2
___________________________________ _____________________________
Myra Maravilla, City Clerk Michael Jenkins, City Attorney
EXHIBIT A
ECONOMIC DEVELOPMENT STRATEGY
537
538
Hermosa Beach Economic Development Strategy
Introduction
Economic Development is different in each city according to its unique needs and opportunities. This
Hermosa Beach Economic Development Strategy identifies a path forward as we emerge from the
pandemic and post-pandemic recovery poised to facilitate business success, strengthen the local
economy and improve quality of life for residents.
The Economic Development Committee directed development of a long-term Economic Development
Strategy, as stated in PLAN Hermosa under Governance Goal 6: A broad-based and long-term economic
development strategy for Hermosa Beach that supports existing businesses while attracting new
business and tourism.
This plan will be implemented by City departments in collaboration with the Hermosa Beach Chamber
of Commerce, input from the community and, in some cases, with the help of professional consultants.
Regular review with the City Council will monitor progress and provide a system to update priorities
and identify new Economic Development opportunities.
Some business-friendly initiatives put in place to serve the business community are included under the
category of “City Economic Development Work Program” to ensure they are continued.
Preparation of the Economic Development Strategy
The Economic Development Strategy is the result of more than a year of work with the Economic
Development Committee and Stakeholders Advisory Working Group to identify Economic
Development Strategy objectives and actions, supported by the City Manager’s Office and Community
Development Department staff. Monthly Economic Development Committee meetings and twice-
monthly Stakeholders Advisory Working Group explored and discussed relevant Hermosa Beach topics,
including Gateways and Corridors, Downtown issues, Tourism, Special Events, Arts and Culture, Music
and Entertainment, and Placemaking.
The Economic Development Strategy includes strategic actions; steps the City can take to enhance
Hermosa Beach and strengthen the local economy through beautification, code changes, and other
pro-active steps to build relationships through listening to property owners and businesses to
encourage investment, business expansion and success.
The strategic actions are divided into five categories: Citywide Beautification, Downtown, Municipal
Code Amendments, Business Outreach, and City Economic Development Work Program.
539
Economic and Demographic Conditions
Hermosa Beach Demographics
2010 2020
540
Hermosa Beach Employment
Hermosa Beach has more than 1,000 businesses in commercial spaces and home-based, large and
small. Hermosa Beach has 12,290 workers living within its borders who work across 13 major industrial
sectors. The table below shows the types of jobs they hold. The most prevalent occupational category
in Hermosa Beach is Management, in which 7,580 (61.7% of total) employees work. The second-most
prevalent type of work is in Sales, which employs 2,966 (24.1% of total) in Hermosa Beach.
Employment by Occupation – Hermosa Beach
Hermosa Beach as Bedroom Community
Hermosa Beach is considered a “bedroom community,” since more residents travel outside the city for
work than individuals who travel to Hermosa Beach to work, with a daily net outflow of 2,475, as
shown in the below table. This contributes to a smaller daytime population, especially in comparison to
the adjacent Manhattan Beach, which has a daily net gain of 4,377.
However, work-from-home trends may reduce employee outflow and allow more of the community to
support local businesses during the day, including for in-person meetings for coffee or lunch.
Additionally, when the Skechers North American headquarters is completed in 2023 – located at the
expanded campus in Manhattan Beach and Hermosa Beach – an addition 700 employees will be in the
area to support businesses with lunch and shopping during the day. These encouraging factors promise
to add business and foot traffic during the daytime.
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Hermosa Beach Daytime Population
Hermosa Beach Tourism
Visitors support local businesses and help to attract the types of businesses that residents also enjoy.
Overnight visitors pay a 14% Transient Occupancy Tax (TOT) to support city services such as the pier,
beaches, parks, police and fire services, and reduce cost impacts to residents.
During the most recent City Council budget review held March 22, 2022, it is expected that 2021-2022
TOT revenues will recover to pre-pandemic levels to approximately $3.5 million.
The Hermosa Beach Chamber of Commerce and Visitors Bureau has plans to focus on attracting new
overnight visitors to further support local businesses and increase awareness of Hermosa Beach as an
overnight visitor destination.
Hermosa Beach Transient Occupancy Tax (TOT)
542
Two small hotels are under construction at 70 10th Street with 6 rooms and 66 11th Street with 9
rooms, which will expand visitor hotel choice and add to the Hermosa Beach hotel room inventory,
currently from 480 to 495 rooms.
Hermosa Beach Hotels
Name Year Built Category Rooms
Beach House 1998 Luxury 96
Grandview Inn 1973 Economy 17
H2O Hermosa 2020 Mid-Range 30
Hampton Inn 2002 Economy 70
Holiday Inn Express 2001 Economy 80
Hotel Hermosa 1990 Mid-Range 80
Quality Inn 1986 Economy 39
Sea Sprite Ocean Front Hotel 1957 Mid-Range 39
480
Economic Development Strategic Actions
Strategic Actions have been sorted into five broad categories to ensure regular progress in each area.
Citywide Beautification
1 Wayfinding Signs
Objective: Inform and direct visitors from PCH, Aviation and Artesia to beach, pier, parking,
business districts and add to sense of place.
Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Implement wayfinding sign program along corridors and in Downtown
with sidewalk details, QR codes or other pedestrian-level signs, including City branding,
Responsible Staff: Public Works, City Manager’s Office, Chamber of Commerce
2 Façade Improvement Program for commercial districts
Objective: Private property investment to improve appearance of older buildings in need of
refreshed exteriors.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
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Performance Measures: Proactive outreach to property owners, Identify funding source (CDBG,
Grants), Establish program with architect assistance. Program to be catalyst for improvements,
encouraging new investment reducing vacancy rates, increasing property values and providing
a more welcoming atmosphere.
Responsible Staff: Community Development
3 Beautification Program, including gateway entries and corridors. Seek funding sources for
improvements.
Objective: Improve community quality of life, sense of pride and City image, improve
appearance of all areas of Hermosa Beach.
Difficulty: Medium
Priority Timeline: Within 2-3 Years
Performance Measures: Seek street view enhancements at every opportunity, Identify and
incorporate beautification projects in annual CIP budget. Seek quality private developments.
Beautification is an investment in the City to add sales tax, increase hotel occupancy rates and
TOT collections, reduce vacancy rates and increase property values.
Responsible Staff: Public Works, Community Development, City Manager’s Office
4 Beautification Awards
Objective: Celebrate and encourage improvements.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Annual recognition of new or improved private and public spaces.
Responsible Staff: Mayor’s Award or Chamber of Commerce
5 Consider Arts in Public Places Program
Objective: Arts in Public Places ordinance to add public art as part of private development to
increase beautification with new projects.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Arts in Public Places ordinance to add public art as part of private
development to increase beautification with new projects.
Responsible Staff: Community Development, Community Resources, Chamber of Commerce.
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6 Placemaking Community Forum, including City Council, Planning Commission and Parks,
Recreation and Community Resources Advisory Commission.
Objective: Consider Placemaking principles as decision making tool for staff and commissions.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Placemaking includes activating underutilized spaces and gathering
places, improving area attractiveness for all ages and abilities, and including community in
decision making. BIDs can also be considered in other areas of the City.
Responsible Staff: Community Development, City Manager’s Office, Public Works, Community
Resources
7 Placemaking Project Design. The City to include community through public engagement.
Objective: Community involvement in design ensures area will be enjoyed, promotes local pride
and quality of life.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Training and citywide approach to seek opportunities to include
community input and neighborhood enhancement opportunities.
Responsible Staff: Community Development, City Manager’s Office, Public Works, Community
Resources
8 Include Beautification-related projects in the City budget and CIP to add value and for
residents and visitors to enjoy. Investment in the public realm improves community quality of
life and welcomes visitors.
Objective: Improve public areas appearance to enhance community quality of life and City
image
and attract visitors.
Difficulty: Medium or Difficult depending on projects
Priority Timeline: Within 2-3 Years or More than 3 years depending on projects
Performance Measures: Results in increased commercial and residential property values and
community pride, Increased hotel occupancies, City transient occupancy tax and sales tax
collection
Responsible Staff: Public Works, Finance
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Downtown
9 Work with Business Community to Explore Formation of a Business Improvement District
(BID).
Objective: Facilitate BID if desired by Downtown property owners and/or businesses. A BID can
fund activities beyond City services identified by property owners and/or businesses.
Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: Initial information meeting, determine which type of BID to establish,
form advisory committee to identify activities needed and associated costs to determine
assessments.
Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce
10 Focused Update of Downtown Revitalization Strategy, including Preservation of Downtown
Retail and Restaurants and other active uses on 1st floor.
Objective: Review document to determine what needs to be completed or added. Economic
market study completed in 2021 can inform updated Downtown Revitalization Strategy.
Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: An updated strategy that aligns with emerging trends that sets the
stage for a sustainable and vibrant economic future. Add incentives for active uses on 1st floor
in Downtown with new Zoning Code. Will need consultant assistance after RFP and selection.
Responsible Staff: Community Development, Public Works, City Manager’s Office, Consultant
11 Develop Identity/Vision for the Downtown
Objective: Incorporate City brand with marketing and future improvements.
Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: Consistent with PLAN Hermosa and Downtown Revitalization Strategy.
May be considered concurrent with Update of Downtown Revitalization Strategy. Would
require RFP and consultant contract with public outreach.
Responsible Staff: Community Development, Public Works, City Manager’s Office, Consultant,
Chamber of Commerce
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12 Comprehensive Downtown lighting evaluation with complete photometric study, design and
installation. This requires a new CIP request for funding, community input for desired lighting,
and public review.
Objective: Lighting plan for Downtown with overall vision to create safe and welcoming
atmosphere.
Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Include in CIP budget, RFP, include public input process in contract.
This could be an example for other areas of the City in future.
Responsible Staff: Public Works, Consultant
13 Introduce and Facilitate Downtown Experiences (activate public spaces, add interest for
residents and visitors)
Objective: Enhance the special sense of place Downtown to add vibrancy and attract new
business interest and investment
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Seek opportunities for art, music and special experiences in identified
Downtown locations. Added foot traffic to add customers and increase sales tax, increase hotel
occupancy rates and TOT collections, reduce vacancy rates and increase property values.
Responsible Staff: Community Development, Public Works, City Manager’s Office, Community
Resources, Chamber of Commerce
Municipal Code Amendments
14 Permanently Allow Outdoor Dining Areas and Lane Reconfigurations
Objective: To add vibrancy of public and private outdoor spaces, enhance sense of place and
continue to offer outdoor options safely and comfortably. To move traffic at safer speeds and
encourage all mobility options.
Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: City Council ordinance to change codes, CEQA analysis, CA Coastal
Commission approval. Require encroachment rental fees and standards, including appearance,
and to allow commercial use if not in use by business.
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Responsible Staff: Public Works, Community Development, City Manager’s Office
15 Long Term Allowance of Outdoor Music in Business Locations
Objective: Allow temporary outdoor music to become permanent to attract customers, add
vitality and provide unique Hermosa Beach atmosphere.
Difficulty: 2-Medium
Priority Timeline: 1st Year
Performance Measures: Amend Title 17 (Zoning). Include with permanently allowed Outdoor
Dining.
Responsible Staff: Community Development, Public Works
16 Program to Allow Outdoor Music in Public Spaces
Objective: Add vibrancy and sense of place to enhance Downtown
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Develop program with designated spaces and hours for scheduled
musicians. Municipal code amendments (Title 12 Streets, Sidewalks and Public Places).
Responsible Staff: Community Resources, Public Works, Community Development, Police
Department, Chamber of Commerce
Business Outreach
17 Regular Communication with Key Property Owners to Encourage Reinvestment and Provide
Support as Needed
Objective: Meet with property owners of prime commercial sites to discuss status and
opportunities.
Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: 4 meetings per year. Work with property owners to overcome
obstacles to property improvements and investment.
Responsible Staff: Community Development, City Manager’s Office, City Council
Representative, Chamber of Commerce
18 Develop Business Visitation Program
Objective: Build relationships with businesses, understand and better meet needs.
548
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Schedule regular visits to a variety of businesses such as large
employers, sales tax generators, high-visibility businesses. LAEDC can supplement City efforts
with business check-in calls.6-10 visits per year
Responsible Staff: Community Development, City Manager’s Office, City Council
Representative, Chamber of Commerce
19 Annual Commercial Property Owner and Brokers Forum
Objective: Create opportunity to communicate with property owners and brokers to share
project updates, City updates and real estate trends.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Recognize roles of property owners, brokers and City to strengthen
communications and relationships through annual meeting.
Responsible Staff: Community Development, City Manager’s Office, City Council, Chamber of
Commerce
City Economic Development Work Program
20 Shop Local Program
Objective: Encourage residents to support local businesses year-round to retain and grow
businesses and strengthen local economy.
Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Work with Chamber to promote local businesses through social media
and other communications at holiday season, ‘Small Business Saturday” and at every
opportunity year-round.
Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce
21 Provide Hermosa Beach business information to event promoters to encourage use of local
vendors and distribution to participants.
Objective: Gain additional business support from day visitors attending events.
Difficulty: Easy
549
Priority Timeline: 1st Year
Performance Measures: Develop virtual business map with services provided and hours of
operation to event promoters to encourage year-round patronage of local businesses.
Responsible Staff: Community Resources, Community Development, GIS, Chamber of
Commerce
22 Retail Attraction Program for Competitive, Strengthened Retail
Objective: Help recruit new businesses to reduce vacancies, increase foot traffic and strengthen
local economy.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Identify vacancies, communicate with property owners, help recruit
businesses to reduce vacancies, increase property values and maintain and increase sales tax
revenue.
Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce
23 Partnership with Chamber of Commerce to enhance Visitors Bureau to develop and promote
the Hermosa Beach brand and provide visitor resources.
Objective: Promote Hermosa Beach as an overnight destination.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Increase overnight visitors to support businesses year-round, increase
hotel occupancy and City transient occupancy taxes. Visitors support local businesses that
residents also enjoy and strengthen the local economy.
Responsible Staff: City Manager’s Office, Chamber of Commerce
24 Periodic Community Survey to Determine What Types of Shops or Goods are Desired and
Residents Drive Out of Town to Patronize
Objective: Survey information to identify gaps in services or goods provided for business
attraction. Survey information is a helpful tool in business recruitment since community seeks
certain types of business and shows market demand.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
550
Performance Measures: Biennial survey to inform existing businesses of market needs and to
help attract new businesses to reduce vacancies.
Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce
25 Explore Music Events and Activities to Celebrate Hermosa Beach Music History and Provide
Musical Experiences for Community and Visitors
Objective: Celebrate unique local musical heritage for community pride and to distinguish
Hermosa Beach to visitors.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Incorporate musical history into events and create new events. Events
in non-summer season could attract visitors in the non-peak summer season and increase sales
tax, increase hotel occupancy rates and TOT collections and strengthen local economy and
Hermosa Beach brand.
Responsible Staff: Community Resources, Historical Society and Museum, Chamber of
Commerce
26 Development Assistance Committee/Development Review Committee
Objective: Provide early feedback and information to developers.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Formalize and promote pre-development meeting process. Early
information establishes relationships and reduces development processing time.
Responsible Staff: Community Development, Public Works, Police, LA Fire as needed
27 Provide customer service training to all City staff to build a culture of excellent customer
service.
Objective: Provide highest quality service to residents and businesses.
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Provide comprehensive customer service training with periodic
updates. Include customer service consideration for job candidates. Build on shared City culture
of excellent customer service by all employees.
Responsible Staff: City Manager’s Office, Human Resources
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28 Continuous improvements to streamline processes and reduce approval times for permit
processes.
Objective: Provide certainty and reduce approval times through efficiencies.
Difficulty: Easy
Priority Timeline: In Process
Performance Measures: Seek continuous staff efficiencies, Periodic Process Improvements
Workshops, 1-2 per year
Responsible Staff: Community Development, Public Works, City Manager’s Office
29 Continue staff member assigned as Business Liaison
Objective: Point of contact to assist new and expanding businesses.
Difficulty: Easy
Priority Timeline: In Process
Performance Measures: Timely response to inquiries, referrals, maintain email business@
hermosabeach.gov
Responsible Staff: Community Development
30 Regular City Council Review
Objective: Continue citywide Economic Development program.
Difficulty: Easy
Priority Timeline: Continuous
Performance Measures: City Council review with identification of priorities and workplan in
January and July each year to ensure progress on Economic Development Strategy
Responsible Staff: Community Development, City Manager’s Office
Economic Development Strategy Implementation
Implementation
The matrix below shows the Economic Development actions and ease to implement in five categories:
Citywide Beautification, Downtown, Municipal Code Amendments, Business Outreach and City
Economic Development Work Program. These are rated at 1-Easy, 2-Medium and 3-Difficult. These
ratings are based on factors such as budget costs, time required to complete, and level of complication
including if the City will need to work with consultants or other agencies such as Coastal Commission
552
and CalTrans. This does not consider staff capacity; for example, all of the easy-rated actions could not
be included in the staff work plan and completed at the same time.
Priority/Timeline
Actions’ priority and work plan determine which actions should be completed first. These are rated A-
Within 1 Year, B-Within 2-3 Years, C-More than 3Years. An example of an action that is a priority but
not rated as easy to implement is the “Permanently Allow Outdoor Dining” since the action requires
ordinances to amend the municipal code, environmental analysis, and Coastal Commission. It is not
easy to implement but has been identified as a priority. This is a working document and priorities may
change as needed with periodic review.
Staff Assigned
The matrix below identifies who will be implementing the actions, including: CMO-City Manager’s
Office, CD-Community Development, PW- Public Works, CR-Community Resources, PD-Police
Department, and HR-Human Resources. The Chamber of Commerce and professional consultants are
listed here to also work on strategic actions.
Continue Programs in Place
The Economic Development Strategy does not address or recommend changes to sustainability actions
in place, including the successful Green Business Program and actions recognized as Blue City activities
to continue protecting healthy waterways and oceans.
Regular City Council Review
For an Economic Development program to be successful, it needs to be a citywide priority and include
multiple departments. A regular review of the Economic Development Strategy and prioritization of
the work plan early in the year and mid-year ensures that the plan will continue, and Economic
Development will be maintained as a City priority as intended in PLAN Hermosa.
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STRATEGIC ACTION OBJECTIVE STAFF EASE TO
IMPLEMENT/
DIFFICULTY
1-Easy
2-Medium
3-Difficult
PRIORITY/
TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+
PERFORMANCE
MEASURES
STATUS
CITYWIDE
BEAUTIFICATION
1 Wayfinding Signs Inform and direct
visitors from PCH,
Aviation and Artesia to
beach, pier, parking,
business districts and
add to sense of place.
PW,
CMO,
Chamber
1 A
Timing
will need
to include
public
input
Implement wayfinding
sign program along
corridors and in
Downtown with
sidewalk details, QR
codes or other
pedestrian-level signs,
including City branding,
Include in CIP budget.
This may be two
different projects.
2 Beautification Program,
including gateway entries
and corridors. Seek
funding sources for
improvements.
Improve community
quality of life, sense of
pride and City image,
improve appearance of
all areas of Hermosa
Beach.
PW, CD,
CMO
2
3 for major
projects such
as sidewalks,
streets or
underground
utilities
B
B
for these
items
beyond
initial
funding
Seek street view
enhancements at every
opportunity, Identify
and incorporate
beautification projects
in annual CIP budget,
Seek quality private
developments.
Beautification is an
investment in the City
to add sales tax,
increase hotel
occupancy rates and
TOT collections, reduce
vacancy rates and
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STRATEGIC ACTION OBJECTIVE STAFF EASE TO
IMPLEMENT/
DIFFICULTY
1-Easy
2-Medium
3-Difficult
PRIORITY/
TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+
PERFORMANCE
MEASURES
STATUS
3
increase property
values.
3 Façade Improvement
Program for commercial
districts.
Private property
investment to improve
appearance of older
buildings in need of
refreshed exteriors.
CD 1 B Proactive outreach to
property owners,
Identify funding source
(CDBG, CIP, Grants)
Establish program
(architect assistance?).
Program to be catalyst
for improvements,
encouraging new
investment reducing
vacancy rates,
increasing property
values and providing a
more welcoming
atmosphere.
4 Beautification Awards Celebrate and
encourage
improvements.
Mayor’s
Award or
Chamber
1 B Annual recognition of
new or improved
private and public
spaces.
5 Consider Arts in Public
Places Program
AIPP would require
public art as part of
major commercial
developments as part
of citywide
beautification.
CD, CR,
Chamber
1 B Arts in Public Places
ordinance to add public
art as part of private
development to
increase beautification
with new projects.
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STRATEGIC ACTION OBJECTIVE STAFF EASE TO
IMPLEMENT/
DIFFICULTY
1-Easy
2-Medium
3-Difficult
PRIORITY/
TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+
PERFORMANCE
MEASURES
STATUS
4
6 Include beautification-
related projects in the
City budget and CIP to
add value and for
residents and visitors to
enjoy. Investment in the
public realm improves
community quality of life
and welcomes visitors.
Improve public areas
appearance to enhance
community quality of
life and City image
and attract visitors.
PW,
Finance
1
2-3
depending
on projects
B
B-C
depending
on
projects
Results in increased
commercial and
residential property
values and community
pride, Increased hotel
occupancies, City
Transient Occupancy
Taxes and sales tax
collection
7 Placemaking Community
Forum, including City
Council, Planning
Commission and Parks,
Recreation and
Community Resources
Advisory Commission.
Consider Placemaking
principles as decision
making tool for staff
and commissions.
CD, CMO,
PW, CR
1 B Placemaking includes
activating underutilized
spaces and gathering
places, improving area
attractiveness for all
ages and abilities, and
including community in
decision making.
8 Placemaking Projects
Design. The City to
include community
through public
engagement.
Community
involvement in design
ensures area will be
enjoyed, promotes
local pride and quality
of life.
CD, CMO,
PW, CR
1 B Training and citywide
approach to seek
opportunities to
include community
input and
neighborhood
enhancement
opportunities.
DOWNTOWN
9 Work with Business
Community to Explore
Facilitate BID if desired
by Downtown property
CD, CMO
Chamber
2 A Initial information
meeting, determine
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STRATEGIC ACTION OBJECTIVE STAFF EASE TO
IMPLEMENT/
DIFFICULTY
1-Easy
2-Medium
3-Difficult
PRIORITY/
TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+
PERFORMANCE
MEASURES
STATUS
5
Formation of Business
Improvement District
(BID)
owners and businesses.
A BID can fund
activities beyond City
services identified by
property owners
and/or businesses.
which type of BID to
establish, form
advisory committee to
identify activities
needed and associated
costs to determine
assessments. BIDs can
also be considered in
other areas of the City.
10 Focused Update of
Downtown Revitalization
Strategy, including
Preservation of
Downtown Retail and
Restaurants and other
active uses on 1st floor
Review document to
determine what needs
to be completed or
added. Economic
market study
completed in 2021 can
inform updated
Downtown
Revitalization Strategy.
CD, PW,
CMO,
Consultant
2 A An updated strategy
that aligns with
emerging trends that
sets the stage for a
sustainable and vibrant
economic future.
Add incentives for
active uses on 1st floor
in Downtown with new
Zoning Code. Will need
consultant assistance
after RFP and selection.
11
Develop Identity/Vision
for the Downtown
Incorporate City brand
with marketing and
future improvements.
CMO, CD
PW,
Chamber,
Consultant
2 A Consistent with PLAN
Hermosa and
Downtown
Revitalization Strategy.
May be considered
concurrent with
Update of Downtown
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Revitalization Strategy.
Would require RFP and
consultant contract
with public outreach.
12 Comprehensive
Downtown lighting
evaluation with complete
photometric study,
design and installation.
This requires a new CIP
request for funding,
community input for
desired lighting, and
public review.
Lighting plan for
Downtown with overall
vision to create safe
and welcoming
atmosphere.
PW,
Consultant
1 A Include in CIP budget,
RFP, include public
input process in
contract.
This could be an
example for other
areas of the City in
future.
13 Introduce and Facilitate
Downtown Experiences
(activate public spaces,
add interest for residents
and visitors)
Enhance the special
sense of place
Downtown to add
vibrancy and attract
new business interest
and investment.
CD, PW,
CMO, CR,
Chamber
1 B Seek opportunities for
art, music and special
experiences in
identified Downtown
locations. Added foot
traffic to add
customers and increase
sales tax, increase
hotel occupancy rates
and TOT collections,
reduce vacancy rates
and increase property
values.
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14 Permanently Allow
Outdoor Dining Areas
and Lane
Reconfigurations
To add vibrancy of
public and private
outdoor spaces,
enhance sense of place
and continue to offer
outdoor options safely
and comfortably. To
move traffic at safer
speeds and encourage
all mobility options.
CD, PW,
CMO
2 A City Council ordinance
to change codes, CEQA
analysis, CA Coastal
Commission approval.
Require encroachment
rental fees and
standards, including
appearance, and to
allow commercial use if
not in use by business.
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MUNICIPAL CODE
AMENDMENTS
15 Long Term Allowance of
Outdoor Music in
Business Locations
Allow temporary
outdoor music to
become permanent to
attract customers, add
vitality and provide
unique Hermosa Beach
atmosphere.
CD,
PW
2 A Amend Title 17
(Zoning). Include with
permanently allowed
Outdoor Dining.
16 Program to Allow
Outdoor Music in Public
Spaces
Add vibrancy and sense
of place to enhance
Downtown.
CR, PW,
CD, PD,
Chamber
1 B Develop program with
designated spaces and
hours for scheduled
musicians. Municipal
code amendments
(Title 12 Streets,
Sidewalks and Public
Places).
BUSINESS OUTREACH
17 Regular Communication
with Key Property
Owners to Encourage
Reinvestment and
Provide Support as
Needed
Meet with property
owners of prime
commercial sites to
discuss status and
opportunities.
CD, CMO,
CC rep.,
Chamber
1 A 4 meetings per year
Work with property
owners to overcome
obstacles to property
improvements and
investment.
18 Develop Business
Visitation Program
Build relationships with
businesses, understand
and better meet needs.
CD, CMO,
CC rep.,
Chamber
1 B Schedule regular visits
to a variety of
businesses such as
large employers, sales
tax generators, high-
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visibility businesses.
LAEDC can supplement
City efforts with
business check-in
calls.6-10 visits per year
19 Annual Commercial
Property Owner and
Brokers Forum
Create opportunity to
communicate with
property owners and
brokers to share project
updates, City updates
and real estate trends.
CD, CMO,
CC,
Chamber
1 B Recognize roles of
property owners,
brokers and City to
strengthen
communications and
relationships through
annual meeting.
CITY ECONOMIC
DEVELOPMENT WORK
PROGRAM
20 Shop Local Program Encourage residents to
support local businesses
year-round to retain and
grow businesses and
strengthen local
economy.
CD, CMO,
Chamber
1 A Work with Chamber to
promote local
businesses through
social media and other
communications at
holiday season, ‘Small
Business Saturday” and
at every opportunity
year-round.
21 Provide Hermosa Beach
business information to
event promoters to
encourage use of local
Gain additional business
support from day
visitors attending
events.
CR, CD
GIS,
Chamber
1 A Develop virtual
business map with
services provided and
hours of operation to
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vendors and distribution
to participants.
event promoters to
encourage year-round
patronage of local
businesses.
22 Retail Attraction Program
for Competitive,
Strengthened Retail
Help recruit new
businesses to reduce
vacancies, increase foot
traffic and strengthen
local economy.
CD, CMO
Chamber
1 B Identify vacancies,
communicate with
property owners, help
recruit businesses.
to reduce vacancies,
increase property
values and maintain
and increase sales tax
revenue.
23 Partnership with
Chamber of Commerce
to enhance Visitors
Bureau to develop and
promote the Hermosa
Beach brand and provide
visitor resources.
Promote Hermosa
Beach as an overnight
destination.
CMO,
Chamber
1 B Increase overnight
visitors to support
businesses year-round
, increase hotel
occupancy and City
transient occupancy
taxes. Visitors support
local businesses that
residents also enjoy
and strengthen the
local economy.
24 Periodic Community
Survey to Determine
What Types of Shops or
Goods are Desired and
Survey information to
identify gaps in services
or goods provided for
business attraction.
CD, CMO,
Chamber
1 B Biennial survey to
inform existing
businesses of market
needs and to help
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Residents Drive Out of
Town to Patronize
Survey information is
helpful tool in business
recruitment since
community seeks
certain types of business
and shows market
demand.
attract new businesses
to reduce vacancies.
25 Explore Music Events and
Activities to Celebrate
Hermosa Beach Music
History and Provide
Musical Experiences for
Community and Visitors
Celebrate unique local
musical heritage for
community pride and to
distinguish Hermosa
Beach
to visitors.
CR,
Historical
Society
and
Museum,
Chamber
1 B Incorporate musical
history into events and
create new events.
Events in non-summer
season could attract
visitors in the non-peak
summer season and
increase sales tax,
increase hotel
occupancy rates and
TOT collections and
strengthen local
economy and Hermosa
Beach brand.
26 Development Assistance
Committee/Development
Review Committee
Provide early
feedback/info to
developers
CD, PW,
PD, Fire as
needed
1 B Formalize and promote
pre-development
meeting process. Early
information establishes
relationships and
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reduces development
processing time.
27 Provide customer service
training to all City staff to
build on culture of
excellent customer
service.
Provide highest quality
service to residents and
businesses.
CMO, HR,
1 A Provide comprehensive
customer service
training with periodic
updates. Include
customer service
consideration for job
candidates. Build on
shared City culture of
excellent customer
service by all
employees.
28
Continuous
improvements to
streamline processes and
reduce approval times
for permit processes.
Provide certainty and
reduce approval times
through efficiencies.
CD, PW,
CMO
1 In Process Seek continuous staff
efficiencies, Periodic
Process Improvements
Workshops
1-2 per year
29
Continue staff member
assigned as Business
Liaison
Point of contact to assist
new and expanding
businesses.
CD 1 In Process Timely response to
inquiries, referrals,
maintain email
business@
hermosabeach.gov
30
Regular City Council
Review
Continue citywide
Economic Development
program.
CMO, CD,
PW
1 Continuous City Council review
with identification of
priorities and workplan
in January and July
each year to ensure
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progress on Economic
Development Strategy
*CMO-City Manager’s Office, CD-Community Development, PW- Public Works, CR-Community Resources, CC – City Council representative, PD-
Police Department, and HR-Human Resources. The Chamber of Commerce and professional consultants are listed here.
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Economic Development Strategy as Implementation of PLAN Hermosa
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. The Economic
Development Strategy supports several PLAN Hermosa goals and policies that 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:
• 6.1 Long-term economic development. Support the development and implementation of long-
term economic development strategies that seek to establish and keep new businesses and a
strong middle class in Hermosa Beach over the decades to come.
• 6.2 Regional presence. Encourage economic development strategies that will make Hermosa
Beach a driving force and jobs center behind the regional economy of the South Bay region.
• 6.3 Diversified Economy. Encourage economic development strategies that allow the city to
move beyond reliance on its two main industries – accommodation and food service and retail
trade – and transform itself to a mature mix of economic activity and job opportunities.
• 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.
• 6.5 Creative economy. Prioritize strategies that will create an economy full of diverse talents,
trades and goods for the city. For long lasting economic success, a range of services, arts,
entertainment and retail should be supported on all scales of the city’s economy.
• 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.
• 6.7 Retail base. Encourage economic development reflective of the character of Hermosa Beach
with small and medium scale retail development within Hermosa Beach in order to create a
stronger tax base and increase the City’s tax revenue.
Land Use Element
Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and
high quality of life for residents.
Policies:
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• 1.1 Diverse and distributed land use patterns. 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.
• 1.4 Diverse commercial areas. Promote the development of diversified and unique commercial
districts with locally owned businesses and job- or revenue-generating uses.
• 1.5 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of
residents as well as visitors.
• 1.8 Respond to unique characteristics. Enhance the unique character and identity of the city’s
neighborhoods, districts and corridors through land use and design decisions. Allow policies and
programs to be focused on each unique character area of the city.
Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach.
• 3.1 Unique districts. Encourage the development of local and city-wide districts and centers that
address different community needs and market sectors and complement surrounding
neighborhoods.
• 3.3 Diverse retail and office centers. Provide incentives to transform existing single-use
commercial properties that are accessible into retail destinations by adding a diversity of uses,
providing new pedestrian connections to adjacent residential areas, reducing the visual
prominence of parking lots, making the centers more pedestrian-friendly and enhancing the
definitions and character of street frontage and associated streetscapes.
• 3.4 Diverse employment sectors. Strive to create districts that support increased employment
activity, particularly for growing or emerging economic sectors.
• 3.5 Compact office formats. New employment uses should be designed in a compact format with
minimal front setbacks from the street, typical lease spans of 40 feet or less, and where feasible,
combined with other commercial uses.
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Thank You to All Who Contributed to This Economic Development Strategy
Economic Development Committee
Councilmember Mary Campbell, Chair
Planning Commissioner Peter Hoffman, Vice Chair
Mayor Michael Detoy, Committee Member
Planning Commissioner David Pedersen, Committee Member
Economic Development Stakeholders Advisory Group
Jessica Accamando
Frank Buckley
Colin Cooley
Tony Cordi
Jon David
Dave Davis
Brian M. Dunne
Lori Ford
Bob Jones
Bob Lombardo
Anthony Morrison
Ron Newman
Peter Nolan
Laura Pena
Josh Royal
Bill Sigler
Stacy Straus
Jonathan M. Wicks
City Staff Economic Development Team
Suja Lowenthal
Ken Robertson
Angela Crespi
Melanie Hall
Doug Krauss
Carlos Luis
Sirinya Matute
Joe Sanclemente
Christy Teague
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Economic Development Strategy
First Year Implementation Priorities
The below ten strategic actions are identified as priorities for implementation within the
first year, including actions in all five categories.
Citywide Beautification
1 Wayfinding Signs
Downtown
9 Work with Business Community to Explore Formation of a Downtown
Business Improvement District (BID).
10 Focused Update of Downtown Revitalization Strategy, including
Preservation of Downtown Retail and Restaurants and other active uses on
1st floor.
11 Develop Identity/Vision for the Downtown
12 Comprehensive Downtown lighting evaluation with complete photometric
study, design and installation
Municipal Code Amendments
14 Permanently Allow Outdoor Dining Areas and Lane Reconf igurations
15 Long Term Allowance of Outdoor Music in Business Locations
Business Outreach
17 Regular Communication with Key Property Owners to Encourage
Reinvestment and Provide Support as Needed
City Economic Development Work Program
20 Shop Local Program
21 Provide Hermosa Beach business information to event promoters to
encourage use of local vendors and distribution to participants.
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Report
Hermosa Beach Economic and
Market Study Update
Prepared for:
City of Hermosa Beach
Prepared by:
Economic & Planning Systems, Inc.
EPS# 204026
June 1, 2021
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Table of Contents
1. INTRODUCTION ...................................................................................................... 1
2. SUMMARY OF FINDINGS ............................................................................................ 4
3. COMPETITIVE CONTEXT ............................................................................................ 8
Socio-Economic Trends ............................................................................................ 8
Employment Trends .............................................................................................. 13
4. RETAIL TRENDS ................................................................................................... 15
5. HOTEL TRENDS .................................................................................................... 18
6. OFFICE TRENDS ................................................................................................... 22
7. DOWNTOWN HERMOSA BEACH ISSUES AND OPPORTUNITIES ............................................... 25
Area Description ................................................................................................... 25
Issues ................................................................................................................. 27
Opportunities ....................................................................................................... 28
Conclusions .......................................................................................................... 30
APPENDIX A: Business Community Input
APPENDIX B: Key Findings from 2014 Report
APPENDIX C: Supporting Market Data
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List of Tables
Table 1 Beach Cities Demographic Comparison ............................................................. 11
Table 2 Beach Cities Residential Mix ............................................................................ 12
Table 3 Jobs by Industry, 2011-2018 .......................................................................... 14
Table 4 Daytime Population, 2018 .............................................................................. 14
Table 5 Beach Cities Shopping Destinations .................................................................. 15
Table 6 Beach Cities Retail Rents, Vacancies, Inventory ................................................. 16
Table 7 Beach Cities 2018 Taxable Sales Per Capita....................................................... 17
Table 8 Beach Cities Hotel Inventory: Existing and Pipeline ............................................ 20
Table 9 Beach Cities Class B and C Office Inventory ...................................................... 23
Table 10 Hermosa Beach Sales Tax Revenue, FY 2019-20 ................................................ 26
Table 11 Downtown District by Land Use ....................................................................... 31
Table 12 Downtown Hermosa Beach by Ownership Pattern ............................................... 33
Table 13 Downtown Hermosa Beach by Acquisition and Construction Activity ...................... 35
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List of Figures
Figure 1 Beach Cities Map ........................................................................................... 11
Figure 2 Beach Cities Historical Retail Rents .................................................................. 17
Figure 3 Beach Cities Retail Vacancies .......................................................................... 18
Figure 4 Beach Cities Historical Class B and C Office Rents .............................................. 22
Figure 5 Beach Cities Historical Class B and C Office Vacancy ........................................... 22
Figure 6 Downtown Hermosa Beach by Land Use ........................................................... 30
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1. INTRODUCTION
Economic & Planning Systems (EPS) was retained by the City of Hermosa Beach (City) to update
its previous Downtown Core Revitalization Strategy: Market and Economic Analysis Report dated
January 15, 2014. This updated report is intended to inform the City’s efforts in formulate a
citywide economic development strategy. In addition to updating the data included in the last
report, the update expands the analysis to incorporate the City as a whole. Economic and
market data available through third party sources have been updated to reflect the most current
information, and the updated data are incorporated in the tables and text of the full report.
Some aspects of the prior report were based on onsite research and observations. These
elements have not been updated, due to the limitations of the Covid-19 pandemic in terms of
observing business operations and mix with so many businesses closed or operating at a reduced
level.
For the most part, the recommendations of the last study are still valid, and useful as guides to
economic development strategies. However, some conditions have changed since the original
report was completed, and we have attempted to reflect these in the findings of the update. The
most significant changes have to do with parking requirements and strategies; the trend toward
working at home, which is likely to continue post COVID-19 and represents an opportunity the
City can build upon; the evolution of the business mix and the reduction of externalities from
bars on Pier Plaza; and the steps the City has taken to be more proactive in economic
development and improving the business climate. EPS explored the ramifications of these
changes through interviews with key stakeholders in the community, and have reflected what we
have learned in the summary observations described in this executive summary.
Hermosa Beach still occupies a unique position within the triad of Beach Cities located in the
South Bay area of the Los Angeles basin. Situated between the highly affluent Manhattan Beach
to the north and the larger more urban Redondo Beach to the south, Hermosa is the smallest of
the three cities. While also quite affluent, Hermosa Beach has a younger population, a greater
proportion of renters, a smaller proportion of family households, and the smallest employment
base. The City is known in particular for its laid-back beach lifestyle and nightlife entertainment
offerings.
All three Beach Cities began as recreation and vacation destinations characterized by modest
housing and commercial services catering primarily to vacationers, day visitors, and the small
local population. As Los Angeles grew, the Beach Cities became very desirable places to live
year-round, with clean air, excellent schools, the beach amenity, and an improving housing
stock. Manhattan Beach in particular, with its superior proximity and transportation linkages to
Los Angeles employment centers and LAX, has become very upscale with high home values and
a very successful retail and commercial district. Hermosa Beach has benefited from similar
trends, and as the city has matured, the Downtown District has evolved as well. Compared with
Manhattan Beach, however, Hermosa Beach is in a more transitional stage as downtown
commercial offerings offer less diversity in retail and fine dining than would be expected given
the city’s demographics and high-quality locational assets.
The findings in this Report are based on currently available data, interviews with industry
professionals, site visits, and the authors’ experience with similar projects. Actual future
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development prospects and outcomes will depend on economic conditions, decisions by property
owners and developers based on a range of individual financial and market conditions, and
actions by local government that will influence development activity.
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2. DEMOGRAPHIC AND MARKET DATA UPDATE SUMMARY
Population, Income and Housing
• The total Beach Cities population is approximately 121,000, with Redondo Beach the
largest at 68,000, followed by Manhattan Beach at 36,000, and Hermosa Beach at
20,000.
• Hermosa Beach’s population grew just 0.7 percent between 2010 and 2019, but its
population growth still exceeded its residential unit growth of -2.5 percent. The number
of households in the City declined by 4.4 percent over the same period.
• In 2020, Hermosa Beach had a median home value of $1.7 million, reflecting a 72
percent increase from 2012. Meanwhile, the median value of a home sold in Manhattan
Beach increased to over $2.3 million, reflecting a price growth of 73 percent over the
same period. The Redondo Beach median home value of just over $1 million is
significantly lower than its Beach City neighbors but still much higher than the City of Los
Angeles median of $694,000.
• Hermosa Beach’s median household income in 2019 was $137,000, nearly 40 percent
higher than its figure in 2010. Manhattan Beach still possesses the highest median
household income of the Beach Cities at $150,000, while Redondo Beach’s has now
exceeded six figures, standing at $112,000
• As in 2010, in 2019 Hermosa Beach’s residential population is the youngest, the most
transient, and the least family-oriented of the Beach Cities. The median age of Hermosa
Beach residents is 39, compared with 44 in Manhattan Beach and 41 in Redondo Beach.
The percentage of owner-occupied households in Hermosa Beach is 42 percent, compared
with 62 percent in Manhattan Beach and 48 percent in Redondo Beach.
• Single-family homes make up 54 percent in Hermosa Beach. The number of single-family
homes in Hermosa Beach has increased since 2010 as the number of multifamily homes
has continued to fall. This trend, along with the dramatic increases in home values,
reflects the replacement of older multi-family dwellings with larger, more expensive
single-family homes, similar to the trend in Manhattan Beach.
Employment
• Since 2011, job growth outpaced population growth in Hermosa Beach, with the 9
percent increase in jobs representing more than ten times the City’s population growth.
• Much of the job growth in Hermosa Beach was in sectors associated with knowledge
work. The combined finance, real estate, information, professional services, technical
services, and executive management sectors now make up the second-largest segment in
Hermosa Beach (19 percent).
• The importance of tourism, dining, and entertainment to the economies of all three Beach
Cities is reflected in the job share for the accommodation and food services sectors,
which contributed the largest category of Hermosa Beach jobs (24 percent). However,
this category saw the largest drop in its share of total jobs since 2011, as knowledge-
based jobs have grown at a faster rate. The Covid-19 Pandemic is also expected to have
disproportionately impacted hospitality-related jobs.
• Despite the high growth of jobs relative to population in Hermosa Beach, the City
maintained a strong bedroom community orientation with a jobs-to-household ratio of
0.71 in 2018. The U.S. Census Longitudinal Employment-Household Dynamic (LEHD)
Survey reported that the City had a net commuter outflow of 2,475 that same year.
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Retail
• There is at least 3.7 million square feet of destination retail within nine miles of Hermosa
Beach
• As of Q4 2020, Hermosa had a citywide average annual retail lease rate of $3.54 per
square foot, lower than Manhattan Beach ($5.29 per square foot), but above Redondo
Beach ($2.98 per square foot). Retail vacancy in Hermosa Beach is the highest among
the Beach Cities at 6.1 percent.
• Total taxable sales per capita in Hermosa Beach was $12,202 in 2019, slightly higher
than Redondo Beach ($11,258), but significantly lower than Manhattan Beach ($19,192).
While Hermosa performed similar to Manhattan Beach in the Food Services and Drinking
Places category, it lagged behind both Manhattan Beach and Redondo Beach in General
Merchandise sales.
Hotels
• Hermosa Beach has an estimated 480 hotel rooms as of 2021, approximately half the
amount in Manhattan Beach and less than one third the amount in Redondo Beach.
• The most prominent hotel in downtown Hermosa is the Beach House Hotel, located on the
Strand. It serves mainly leisure, business, and group travel, rather than a vacation
destination clientele. It has continued to operate during the Covid-19 pandemic, but at
lower occupancies. Early check-in and late check-out have allowed some rooms to be
occupied by those who want to work outside the home, but in the community.
• The H2O is a new 30-room hotel on Hermosa Avenue that opened in Late 2020.
Office
• Hermosa Beach’s office inventory stands at approximately 367,000 square feet, and
remains small compared to Manhattan Beach and Redondo Beach, which have about 1.6
million and 2.4 million square feet of office space, respectively. According to CoStar, all of
Hermosa Beach’s office inventory is classified as Class B or C space.
• Overall, the Hermosa Beach market for Class B and C office space occupies a viable
segment priced below Manhattan Beach but above Redondo Beach. As of the fourth
quarter of 2020, Class B and C rents in Hermosa Beach average $3.75 per square foot
and are trending up, compared with $3.17 per square foot in Redondo Beach and $4.25
per square foot in Manhattan Beach.
• Hermosa Beach office vacancy rate in Q4 2020 of 11.7 percent is nearly double that of
Redondo Beach (5.7 percent) and triple that of Manhattan Beach (3.9 percent).
• Marlin Equities expanded its office presence in its buildings along Pier Avenue and it is
further expanding its presence in its building at the intersection of Pier and Manhattan
Avenues. Baker/Burton Lundy has also expanded and upgraded its office presence on
Upper Pier Avenue.
• A remodeled office building on upper Pier Avenue (200 Pier) was originally intended to
offer for-sale office condominiums. It has turned out to be leased space and houses
numerous small businesses.
• There are a few co-working office spaces in Hermosa, including Unita on Hermosa
Avenue. There are quite a few more in Manhattan Beach, and there is potential to
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develop more in Hermosa as an extension of the work from home trend, offering
flexibility between a home office and a more typical workplace.
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3. KEY TRENDS: ISSUES AND OPPORTUNITIES
Parking
• Many interviewees noted that restrictive parking requirements in Hermosa Beach often
prove to be a major barrier to economic growth, smart urban design, and maintaining the
vitality of the historic downtown area. Relaxing the City’s parking standards in some
cases would allow otherwise infeasible projects to be realized, facilitate rehabilitation and
re-tenanting of historic buildings, and remove barriers to potential businesses wishing to
locate in Downtown Hermosa.
• Restaurants in particular are less concerned about parking due to the growth in
alternative transportation options, including ride sharing, carpooling, bicycling, and
walking from nearby neighborhoods that have reduced car travel and the demand for
customer parking.
• Employee parking takes up a lot of capacity that could serve patrons and visitors. Off-site
employee parking could free up more customer parking and provide more parking for
beach goers and visitors in the summer months.
• One of many suggestions for more strategically locating public parking is converting the
tennis courts at the Community Center to structured parking. The City’s in lieu parking
fee could be used to help finance parking in the Civic Center/Community Center area
instead of on Lot A, north of 11th Street between Hermosa Avenue and Beach Drive.
Several interviewees stated that Lot A would be better used for mixed-use development
and/or civic uses in light of its proximity to the Strand and frontage on Hermosa Avenue.
• Parking uphill from the downtown commercial district would facilitate foot traffic passing
by businesses. This juxtaposition has contributed to the vitality of the retail district in
Manhattan Beach.
• It is generally agreed that restrictive parking requirements likely contributed to making
the “Pier/Strand” hotel proposed on the Mermaid site financially infeasible. On-site
parking requirements were also often cited as a major impediment to the rehabilitation
and re-tenanting of older buildings that were built without off-street parking.
• Alternative parking and TDM (Transportation Demand Management) strategies could
alleviate the financial burden of on-site parking. TDM measures may include valet
parking, shuttles, off-site employee parking, and the encouragement of bicycle and
pedestrian access, for example.
• Some business owners commented that fewer parking spaces can be beneficial to their
bottom line, as it sometimes translates to lower lease rates.
• Interviewees were mixed in their assessment of the existing garage. While some noted
that it removed demand for street and surface lot parking in the Downtown, and praised
the public art component, others noted that it remains largely empty during off-peak
periods and occupies a valuable piece of real estate adjacent to the Strand.
Business and Land Use Mix
• As a means of identifying the appropriate tenanting strategy for Downtown, multiple
interviewees suggested an organized means of obtaining residents’ input on their desired
category of establishments.
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• It was overwhelmingly agreed that the public safety concerns associated with the late-
night bar scene have subsided significantly in the past decade, though the problem
remains to some degree, particularly late at night.
• While many hope for a continued trend away from Hermosa’s image as a nightlife
destination, a few interviewees noted that some restaurants/bars depend on the post
dining hours drinking to make sufficient revenue to cover their costs.
• Among those hoping for a continued shift, a culinary-driven scene appears to be desired
by many as a means of replicating the success of Downtown Manhattan Beach, and
attracting a crowd that is less likely to cause police and EMT calls in the late hours.
• One resounding point of unison among interviewees is that outdoor dining which has
increased as restaurants struggle to survive during the pandemic should be retained
permanently and encouraged moving forward.
• While Hermosa Beach has historically not been a strong location for Class A office space,
it is in a unique position to capitalize on certain office trends given its demographic
characteristics and quality of life. It was noted that the desirable environment, ample
food and business services, and the trend toward business decision-makers wanting to
work closer to home are supportive of the demand for Class A office space.
• The likely ongoing trend of increased work from home could be augmented by coworking
office space that offers an alternative to the home office some of the time.
• The PCH corridor offers a general business location in an accessible South Bay coastal
community, and has attracted larger users recently, including the national headquarters
of the shoe company, Skechers, and Lazy Acres Natural Market. Aviation Boulevard also
has potential for market-driven revitalization.
• Many businesses are shut down or operating at reduced levels due to the restrictions of
the Covid-19 pandemic. However, it appears that a number of apparently closed
restaurants and entertainment venues are remodeling and planning to reopen with new
offerings post COVID-19.
• The Comedy and Magic Club is an iconic destination in Hermosa Beach and a valuable
asset for the downtown. It is recommended that the City work to retain this unique
entertainment asset.
• The Lighthouse at Pier Plaza has recently changed ownership with plans to continue as a
live jazz club. Saint Rocke on PCH has also recently changed ownership with plans to
return with live music. These small venues for live music or other entertainment are a
benefit for the City and offer alternatives to venues that are more focused on alcohol
sales.
• Other than older residential uses on the second floor of some buildings, residential uses
are largely absent from the downtown core. The development of mixed-use residential
on infill sites downtown would add “rooftops” to support downtown restaurant and retail
businesses, and activate the streets in the downtown core, as well as provide incentives
for new investment and more ground floor commercial space.
Work From Home
• Beach cities in the LA metro area are very desirable locations due to the clean air, access
to the beach as an amenity, and the charm of historic downtowns that have become
increasingly vital. This is likely to increase the value and attraction of these areas for
residents, but also as business locations as entrepreneurs and executives seek to reduce
commuting on congested roads and highways.
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• More people are working from home as a result of the Covid-19 pandemic. As people
have found that work from home is a viable option for many, this trend is likely to
continue after the pandemic is over.
• Work from home increases the market support for local businesses and restaurants and
should be encouraged by the City.
• Allowing and encouraging small scale coworking spaces, perhaps in mixed-use buildings
could support work from home for those who need to be in an office part of the time, or
prefer to have an option to work outside the home part of the time for other reasons.
• Small scale vertical mixed-use buildings with ground floor commercial and shared
coworking office space above could be accommodated on small, infill sites downtown.
Parking requirements could be reduced since many users would walk or bike to those
locations from their homes.
• There is at least one coworking space in Hermosa, Unita, on Hermosa Avenue.
Manhattan Beach has a number of them, and it is likely more could be supported in
Hermosa as an adjunct to the work at home trend.
• Multiple interviewees noted the potential benefits of converting second floor office along
Upper Pier into live-work lofts. They anticipate that this will both ease some pressure on
the residential market and add to the vitality of the Upper Pier commercial district, which
has traditionally seen less foot traffic than the area surrounding Pier Plaza.
City Policy and Role of Civic Organizations
• Multiple interviewees noted that, in the past, Hermosa Beach’s was not seen as a
business-friendly city. Most clarified that this was no longer so, but that certain actions
could be taken to further enhance the City’s image as it interacts with existing and
potential businesses.
• A common theme was Hermosa’s use of conditional use permits (CUPs). Many
understood that this tool was necessary to curb negative externalities of the City’s bar
scene in the 2000s, but felt that conditions were often over-prescriptive, complicated the
transfer of ownership for certain businesses, and that the application process to amend
CUPs can be extremely cumbersome.
• Some interviewees expressed that the City does not have a comprehensive commercial
strategy. However, they were heartened to hear that the city has appointed a Business
Liaison and created and Economic Development Committee and a stakeholder’s group to
address the business climate in the city.
• Those familiar with the Chamber of Commerce feel that the entity has a strong potential
role, but has historically has not been as effective as it could be in providing guidance
and advocacy for the City’s business community. Recent changes in leadership, as well as
a surge in new Chamber members may reinvigorate the Chamber and make it more
effective.
• Another issue mentioned during the interviews was the perception that the City has
focused on Downtown Hermosa at the expense of other commercial nodes within the
City. However, recent policy changes have assisted the Cypress district in the southern
part of the City, and the City is looking at the PCH corridor and Aviation Boulevard, as
places for larger businesses and employers, and considering how the City can help
nurture reinvestment and renewal in the corridor business areas.
• The City has recently made code amendments to reduce costs for new businesses,
including adding a Minor Sign Review and added a Minor Conditional Use Permit process.
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4. COMPETITIVE CONTEXT
Socio -Economic Trends
Hermosa Beach is one of three Beach Cities in the South Bay area of Los Angeles County. The
northern-most Beach City, Manhattan Beach, is located south of El Segundo, followed by
Hermosa Beach and Redondo Beach at the southern end. A sandy coastal strip forms the western
boundary of Manhattan Beach, Hermosa Beach, and a portion of Redondo Beach, which also has
a significant inland portion. See Figure 1 for a map of the three Beach Cities.
Each of the three Beach Cities has benefited directly from the beach location to become a highly
desired place to live, work, and play. With strong access afforded by the 105 and 405 Freeways
and the nearby Los Angeles International Airport, the Beach Cities have developed a strong
foundation of residential neighborhoods, employment nodes, and visitor attractions to become
among the most affluent communities in the County.
And while the Beach Cities show distinctive economic and demographic characteristics, they are
geographically conjoined so as to function as a closely inter-related market. The distance from
the Sepulveda Shopping Center in northern Manhattan Beach to Riviera Village in South Redondo
Beach is five-and-half miles along Pacific Coast Highway. Alternately, the walk or bike ride from
northern Manhattan Beach to the King Harbor Marina in Redondo Beach is less than four miles
along the beachfront Strand. The Hermosa Valley Greenbelt, a former rail corridor turned hiking
and running trail that connects Manhattan Beach to King Harbor, is one of many alternative
transportation and trails in the area. For Hermosa Beach, this high degree of interconnection has
positive implications for future economic development.
Of the three Beach Cities, Manhattan Beach has the strongest demographic and economic profile,
due to the City’s relatively superior location. As the northern-most Beach City, Manhattan Beach
is the closest to the West Side job centers in Santa Monica and Century City and to major
transportation infrastructure. In addition, Manhattan Beach’s top-rated school system is an
attractive draw to young families, though Manhattan Beach’s Mira Costa High School also serves
Hermosa Beach. Just south of Manhattan Beach, Hermosa Beach benefits—to a slightly lesser
degree—from the same geographical advantages and top-rated school system. Further south,
Redondo Beach exhibits a hybrid nature, as South Redondo reflects the characteristics of a pricy
beachfront community while North Redondo more closely resembles neighboring inland cities
such as Torrance and Hawthorne.
As shown in Table 1, the total Beach Cities population is approximately 121,000, with Redondo
Beach the largest at 68,000, followed by Manhattan Beach at 36,000 and Hermosa Beach at
20,000. Contrary to the previous decade, population in all three Beach Cities grew at a slower
pace between 2010 and 2019 than the City of Los Angeles (which is used here as a baseline
reference). While residential demand has slowed in recent years, the Beach Cities feature high
population densities and are largely built out, which has impeded the construction of new
housing units and kept pressure on the housing supply. For example, in Hermosa Beach
population growth was just 0.7 percent, but it still exceeded its residential unit growth of -2.5
percent. Similarly, while Redondo Beach’s population growth was a modest 1.4 percent, it too
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had a negative residential unit growth of -0.9 percent. Manhattan Beach, the most expensive
housing market of the three, was perhaps able to attract more residential development as its
residential unit growth slightly outpaced population growth, 1.6 percent to 1.2 percent.
A continuing trend among all the Beach Cities, particularly in Manhattan Beach and Hermosa
Beach, is the upward spiral of median home values as a result of the constrained residential
supply and high demand for beach community living. In 2020, Hermosa Beach had a median
home value of $1.7 million, reflecting a 82 percent increase from 2012. Meanwhile, the median
value of a home sold in Manhattan Beach increased to over $2.3 million, reflecting a price growth
of 73 percent over the same period. The Redondo Beach median home value of just over $1
million is significantly lower than its Beach City neighbors but still much higher than the City of
Los Angeles median of $694,000.
However, the Beach Cities have seen continued growth in household incomes as well. Hermosa
Beach’s median household income in 2019 was $137,000, nearly 40 percent higher than its
figure in 2010. Manhattan Beach still possesses the highest median household income of the
three at $150,000, while Redondo Beach’s has now exceeded six figures, standing at $112,000.
All Beach Cities median household incomes significantly exceed the $58,000 median for Los
Angeles. Levels of educational attainment in the Beach Cities have remained high as well, with
over 34 percent of Manhattan Beach residents, 26 percent of Hermosa Beach residents, and 23
percent of Redondo Beach residents have graduate-level degrees, compared with 12 percent of
Los Angeles residents.
While each Beach City retains a unique demographic profile, they have all seen similar trends in
areas such as median age and families as a percentage of total households. As in 2010, in 2019
Hermosa Beach’s residential population is the youngest, the most transient, and the least family-
oriented of the three. The median age of Hermosa Beach residents is 39, compared with 44 in
Manhattan Beach and 41 in Redondo Beach. The percentage of owner-occupied households in
Hermosa Beach is 42 percent, compared with 62 percent in Manhattan Beach and 48 percent in
Redondo Beach. Family households in Hermosa Beach make up 46 percent of all households (up
from 41 percent in 2010) as compared to 71 percent in Manhattan Beach (from 64 percent in
2010), 61 percent in Redondo Beach (from 56 percent in 2010), and 60 percent in Los Angeles
(down from 61 percent in 2010).
Despite distinctions between the residential communities of each of the Beach Cities, the
variances appear to be narrowing as high housing costs in Manhattan Beach cause residential
demand to spill over into Hermosa Beach. Some illustration of the underlying residential
dynamics can be found in Table 2, showing residential mix in each of the Beach Cities. Single-
family homes make up 81 percent of the housing stock in Manhattan Beach, compared with 54
percent in Hermosa Beach, 55 percent in Redondo Beach, and 44 percent in Los Angeles. Since
2010, the number of single-family homes in Hermosa Beach increased as the number of
multifamily homes has continued to fall: 206 new single-family homes were constructed while
459 multifamily units were eliminated. Based on anecdotal information, this was due to
construction of large single-family homes on lots formerly occupied by older multifamily stock. In
this environment of escalating land values, Manhattan Beach has become increasingly
unaffordable, leaving Hermosa Beach as the next-best option for aspiring Beach Cities residents.
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Figure 1 Beach Cities Map
Source: ESRI
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Table 1 Beach Cities Demographic Comparison
Hermosa Beach Manhattan Beach Redondo Beach City of Los Angeles
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
General
Total Population 19,506 19,650 0.7%35,135 35,573 1.2%66,748 67,700 1.4%3,792,621 3,959,657 4.4%
Total Households 9,389 8,979 -4.4%13,732 13,520 -1.5%28,540 27,621 -3.2%1,312,002 1,373,864 4.7%
Total Housing Units 10,311 10,049 -2.5%15,128 15,363 1.6%30,243 29,979 -0.9%1,415,592 1,474,043 4.1%
Median Household Income $99,976 $137,188 37.2%$131,723 $150,083 13.9%$91,737 $112,271 22.4%$48,746 $58,385 19.8%
Median Home Value (1)$957,000 $1,740,000 81.8%$1,379,000 $2,392,635 73.5%$640,000 $1,073,000 67.7%$374,200 $694,583 85.6%
Median Rent $1,795 $2,181 21.5%$1,995 $2,628 31.7%$1,575 $2,072 31.6%$1,104 $1,450 31.3%
Average Household Size 2.04 2.19 7.4%2.50 2.63 5.2%2.29 2.45 7.0%2.81 2.82 0.4%
Average Family Size 2.80 2.87 2.5%3.10 3.14 1.3%2.94 3.07 4.4%3.53 3.62 2.5%
Family/Total Households (%)41%46%64%71%56%61%61%60%
Owner-Occupied/Total Units (%)(2)42%42%64%62%49%48%36%34%
Labor Force Participation (%)80%77%68%64%75%72%67%66%
In-City Jobs/Household 0.62 0.67 1.25 1.30 0.82 0.86 1.22 1.19
Age
Median Age 37.0 39.3 6.2%40.9 44 7.6%39.3 40.7 3.6%34.1 35.6 4.4%
Age 18+ (% of total)84%82%75%73%81%78%77%79%
Age 65+ (% of total)9%12%13%17%10%13%10%12%
Household Income
< $15,000 5%5%4%3%7%5%15%13%
$15,000 - $49,999 18%11%12%12%19%15%36%31%
$50,000 - $99,999 27%22%21%20%28%25%27%27%
$100,000 - $149,999 21%17%18%15%21%20%11%14%
$150,000+29%46%45%50%26%35%11%16%
Education (Age 25+)
No High School Diploma 2%2%1%2%4%4%26%23%
High School Graduate 6%6%7%7%13%11%19%19%
Some College, No Degree 17%11%13%11%19%19%18%18%
Associate Degree 6%5%5%5%7%8%6%6%
Bachelor's Degree 44%49%42%40%37%36%20%22%
Master's/Professional/Phd.25%26%32%34%20%23%10%12%
(2) Includes units for sale
(1) Median home values for 2012 and 2020
Sources: US Census American Community Survey 5-year Estimate 2015-2019; Economics & Planning Systems
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Table 2 Beach Cities Residential Mix
Hermosa Beach Manhattan Beach Redondo Beach City of Los Angeles
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
Residential Mix
Total 10,311 10,058 (253)15,128 15,020 (108)30,243 30,024 (219)1,415,592 1,493,108 77,516
Single-Family
1, Detached 43%43%(74)69%72%322 40%41%313 39%38%15,540
1, Attached 8%11%280 8%9%150 14%14%75 6%6%(948)
Multi-Family
2 13%12%(155)10%7%(379)4%2%(435)3%3%2,925
3 or 4 11%7%(369)7%5%(232)11%11%(159)6%6%3,927
5 to 9 7%10%300 2%2%(14)7%8%393 9%9%7,421
10 to 19 6%3%(313)2%2%15 7%7%(7)10%10%1,338
20+11%12%59 2%2%(49)17%16%(327)27%28%46,175
Mobile Home 2%1%(67)0%1%79 0%1%44 1%1%917
Other 0%1%86 0%0%0 0%0%(116)0%0%221
Owner-Occupied Units by Value
< $50,000 1%2%1%2%1%1%2%1%
$50,000 - $499,999 7%5%4%2%9%5%49%32%
$500,000 +92%93%95%96%90%95%49%67%
Residential Unit Age
Built since 1980 22%29%30%36%31%34%21%25%
Built 1940 to 1979 61%59%62%57%63%62%59%55%
Built 1939 or earlier 16%12%8%7%6%4%21%20%
(1) Median home values for 2019, and net growth from 2010 to 2019
Sources: American Community Survey 5-Year Estimates 2019; Economics & Planning Systems
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Employment Trends
Historically, the Beach Cities served primarily as a vacation destination before evolving into
permanent small-town communities. The Southern California aerospace industry was largely
based in and near the South Bay and provided a source of high-paying jobs until the end of the
Cold War, when sudden cancellation of government contracts and research initiatives helped
caused an exodus of aerospace firms and resulted in recession. (However, Northrop Grumman
remains the largest employer in Redondo Beach, and a cluster of aerospace firms maintain a
strong presence in El Segundo to the north.) More recently, the Beach Cities have benefited from
the growth of high-income knowledge workers seeking work environments that are closer to
home and that offer a high quality of life.
Table 3 shows that, since 2011, job growth outpaced population growth in Hermosa Beach and
Manhattan Beach: the 9 percent job growth in Hermosa Beach was more than ten times
population growth, while 5 percent job growth in Manhattan Beach nearly quadrupled population
growth. (Redondo Beach, with a large industrial sector, experienced continued job losses in
keeping with larger structural declines in manufacturing.) Much of the job growth in Hermosa
Beach and Manhattan Beach was in sectors associated with knowledge work. The combined
finance, real estate, information, professional services, technical services, and executive
management sectors make up the largest segment of Manhattan Beach employment (31
percent), and the second-largest segment in Hermosa Beach (19 percent). Since 2011, such
knowledge workers represented the largest net gain of jobs in Manhattan Beach. The importance
of tourism, dining, and entertainment to the economies of all three Beach Cities is reflected in
the job share for the accommodation and food services sectors, which contributed the largest
category of Hermosa Beach jobs (24 percent) the second-largest for Manhattan Beach (21
percent), and the third-largest for Redondo Beach (16 percent). However, in Hermosa Beach,
this sector experienced the largest drop in employment since 2011.
Each of the Beach Cities has seen an increase in jobs per household as well as its daytime
population since 2011. However, despite the high growth of jobs relative to population in
Hermosa Beach, the City maintains a strong bedroom community orientation with a jobs-to-
household ratio of 0.71 in 2018. This means that for every Hermosa Beach household, there
were 0.71 jobs in the City. A normalized ratio, as reflected by the City of Los Angeles, is 1.16. A
low jobs-to-household ratio typically means a daily net outflow of workers and a decline in the
day population. As shown in Table 4, the population of Hermosa Beach falls 1,950 per day, or
10 percent. Redondo Beach, like Hermosa Beach, is also primarily a bedroom community and
loses 10 percent of its population to out commuting daily. Manhattan Beach, by comparison, has
a jobs-to-household ratio of 1.25, which results in a day population net inflow of 4,950,
equivalent to a 14 percent expansion of the residential population. However, Hermosa Beach is
expected to benefit from the work from home trend, which keeps more residents and increases
the daytime customer base for Hermosa Beach businesses.
A large day population in an urban area often results in additional retail demand. Several
retailers interviewed in Manhattan Beach and Hermosa Beach indicated that the difference in day
population was a major reason why Hermosa Beach could not compete as effectively for retail
tenants and restaurants.
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Table 3 Jobs by Industry, 2011-2018
Table 4 Daytime Population, 2018
Hermosa Beach Manhattan Beach
2018 '11-'18
Change
Share 2018 '11-'18
Change
Share 2011 '11-'18
Change
Share Share
All Jobs 6,409 547 100%17,579 160 100%25,851 (2,202)100%100%
9%1%-9%
Accommodation and Food Services 1,535 (266)24%3,335 (513)19%3,155 817 17%9%
FIRE (2), Infmtn, Prof./Tech., Exec.Mgmt.1,236 210 19%5,443 684 31%3,602 76 16%21%
Retail Trade 899 52 14%2,781 (314)16%3,090 (98)13%8%
Health Care and Social Assistance 684 290 11%1,889 558 11%1,079 593 7%16%
Admin. & Support, Waste Mgmt./Remed.492 128 6%874 335 5%734 (19)3%4%
Other Services (excluding Public Admin.)370 (20)8%930 (446)5%900 (110)3%6%
Production (1)325 169 2%307 (107)3%990 236 1%7%
Wholesale Trade, Transport, Warehousing 294 88 4%385 35 6%8,300 (1,908)6%9%
Educational Services 249 33 5%1,009 65 2%1,242 146 27%14%
Arts, Entertainment, and Recreation 171 (118)5%178 (107)2%485 72 5%4%
Public Administration 154 (19)3%448 (30)1%386 (119)2%3%
(1) Production includes Agriculture, Forestry, Fishing, Hunting, Resource Extraction, Utilities, and Construction
(2) FIRE includes Finance, Insurance, and Real Estate
Source: LEHD Census, Economic & Planning Systems, Inc.
Redondo Beach L.A.
Hermosa
Beach
Manhattan
Beach
Redondo
Beach
Day Population (2018)
Residential Population 19,650 35,573 67,700
Live in City, Employed Outside City (8,042)(12,101)(27,841)
Employed in City, Living Outside City 5,567 16,478 21,371
Day Population 17,175 39,950 61,230
Daily Inflow/(Outflow)(2,475)4,377 (6,470)
Daily Inflow/(Outflow) as % of Residential Population -13%12%-10%
Population Density/Square Mile
Population 13,800 9,000 10,900
Day Population 12,000 10,100 9,900
Sources: US Census, Census LEHD, ESRI, Economic & Planning Systems Inc.
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5. RETAIL TRENDS
The retail competitive landscape for Hermosa Beach, which includes all of the Beach Cities and
parts of El Segundo and Torrance, offers a wide variety of shopping options, including large
enclosed malls, open-air lifestyle centers, and downtown street retail. As shown in Table 5, there
is at least 3.65 million square feet of destination retail within a 10-mile radius of Hermosa Beach.
Table 5 Beach Cities Shopping Destinations
However, the most direct retail competition for Hermosa Beach is walkable retail districts in
downtown Manhattan Beach and Riviera Village in Redondo Beach. As shown in Table 6,
downtown retail commands the highest rents and lowest vacancies in each of these cities. Rents
in the Hermosa Beach downtown are roughly equal to the city-wide. Conversely, Manhattan
Beach downtown rents exceed city-wide rents by 30 percent, from $5.29 to $6.89, and Riviera
Village rents surpass the Redondo Beach average by 65 percent, from $2.98 to $4.91. In all
three cases, downtown vacancies are higher than the citywide average, from 7.5 percent in
Hermosa Beach to 4.0 percent in Manhattan Beach to 5.5 percent in Riviera Village. These high
vacancies can likely be attributed to the Covid-19 pandemic, as they increased markedly since
the beginning of 2020. The generally strong performance of downtown Manhattan Beach and
Redondo Beach, as well as other walkable retail districts has encouraged pipeline projects such
as the Redondo Beach Pier redevelopment and the Point lifestyle center in El Segundo, both of
which have been designed to provide streetscape character.
From a competitive perspective, as indicated by Figure 2 and Figure 3, rents and vacancy rates
in Manhattan Beach have consistently out-performed those in Hermosa Beach and Redondo
Beach. According to brokers and local business people, this is due primarily to the more affluent
demographic profile of Manhattan Beach residents, who can support higher-end retailers than
neighboring cities, and to Manhattan Beach’s vibrant daytime population. Another factor may be
the relative lack of retail diversity in Hermosa Beach. On a total sales-per-capita basis, as shown
in Table 7, Hermosa Beach is well exceeded by Manhattan Beach, and slightly higher than
Redondo Beach. While Hermosa Beach performs strongly in food and beverage stores,
restaurants and bars, it appears to have retail leakage in categories including apparel, general
merchandise, and large-format retail segments like garden supplies, home furnishings, auto
parts, and general wholesale items. Of these leakage categories, the street retail character and
small floor plates in Downtown Hermosa Beach are best suited to supporting an expansion in the
apparel (including women’s fashion goods, general apparel for younger consumers, and sports
Shopping Center Type of Center Miles from
Hermosa
Beach
Retail
Sq.Ft.
Key Tenants Address
South Bay Galleria Enclosed Mall 3.5 955,000 Macy's; Nordstrom; Kohls 1815 Hawthorne Blvd.; Redondo Beach, CA, 90278
Manhattan Village Shopping Center Enclosed Mall 3.4 572,837 Macy's; Williams-Sonoma; Coach 3200 Sepulveda blvd.; Manhattan Beach, CA 90266
Riviera Village Downtown Street Retail 3.4 413,000 Local boutiques and services
Plaza El Segundo Open-Air Lifestyle/Big Box 3.8 400,000 Whole Foods; Anthropologie; H&M; Lululemon760 South Sepulveda Blvd; El Segundo, CA 90245
Redondo Beach Pier Downtown Street Retail 1.5 400,000 Shade Hotel, Theater
Promenade on the Peninsula Open-Air Lifestyle Center 9.0 374,000 Williams-Sonoma; Banana Republic; Gap 550 Deep Valley Drive; Rolling Hills Estates, CA 90274
Downtown Manhattan Beach Downtown Street Retail 2.1 231,000 True Religion, Shade Hotel, boutiques
the Point Open-Air Lifestyle Center 3.8 115,000 Mendocino Farms, True Food Kitchen 850 South Sepulveda, El Segundo
Redondo Shores Open-Air Lifestyle/Big Box 1.5 102,000 Whole Foods; Rite Aid; GNC 403-419 N Pacific Coast Hwy
Fisherman's Wharf Downtown Street Retail 1.5 90,000 Local restaurants and souvenir shops 415 Diamond Street; Redondo, CA 90277
3,652,837
Source: L.A. County Assessor; CoStar; Economic & Planning Systems, Inc.
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and fitness related clothing and accessories) and home furnishings categories. Larger format
retail would be appropriate for larger commercial properties on Aviation Blvd. corridor.
Ultimately, successful improvement in the retail mix will depend on a broad range of factors
discussed further in Section 7.
Table 6 Beach Cities Retail Rents, Vacancies, Inventory
Figure 2 Beach Cities Historical Retail Rents
As of 4Q 2020 All Retail Downtown Retail1 All Retail Downtown Retail2 All Retail Downtown Retail3
Rents (/Sq.Ft.)$3.54 $3.53 $5.29 $6.87 $2.98 $4.91
Vacancy 6.1%7.5%1.8%4.0%4.1%5.5%
Inventory (Sq Ft.)1,032,661 263,336 1,893,104 267,684 3,799,996 325,159
(3) "Downtown" includes Riviera Village in Redondo Beach
Source: CoStar; Economic and Planning Systems, Inc.
Hermosa Beach Manhattan Beach Redondo Beach
(1) "Downtown" includes Pier Avenue, Pier Plaza, and Hermosa Ave. between 9th and 15th Streets in Hermosa Beach
(2) "Downtown" includes the rectangle formed by the Strand, 10th, 13th, and Valley Blvd. in Manhattan Beach
$3.54
$2.98
$5.29
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Hermosa Beach Redondo Beach Manhattan Beach
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Figure 3 Beach Cities Retail Vacancies
Table 7 Beach Cities 2019 Taxable Sales Per Capita
6.1%
1.8%
4.1%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
9.0%
10.0%
Hermosa Beach Manhattan Beach Redondo Beach
Hermosa
Beach
Manhattan
Beach
Redondo
Beach
City of Los
Angeles
Population (1)19,650 35,573 67,700 3,959,657
Total Taxable Sales (2)$263,669,054 $809,970,962 $902,091,369 $50,174,450,540
Taxable Sales Per Capita
Motor Vehicle and Parts Dealers $723 $2,326 $819 $1,243
Home Furnishings and Appliance Stores $696 $802 $747 $475
Building Material and Garden Equipment --$113 $665
Food and Beverage Stores $1,539 $1,816 $1,393 $758
Gasoline Stations -$1,013 $892 $1,171
Clothing and Clothing Accessories Stores $590 $1,946 $1,392 $857
General Merchandise Stores (3)-$2,725 $1,311 $735
Food Services and Drinking Places $5,219 $5,715 $3,478 $2,580
Other Retail Group (4)$3,435 $2,847 $1,213 $1,184
Total Taxable Sales Per Capita $12,202 $19,192 $11,358 $9,666
(1) U.S. Census Bureau; American Community Survey; Population, 2019
Source: State of California Board of Equalization (BOE); Economic & Planning Systems, Inc.
(2) California State Board of Equalization, 2019
(3) BOE catch-all category; includes florists, office supplies, gift/novelty/souvenirs, used merchanise, and other
miscellaneous items
(4) BOE category; includes wholesale taxable sales categories including agriculture, mining, construction,
manufacturing, etc.
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6. HOTEL TRENDS
Hermosa Beach has the potential to become a top hotel destination in Los Angeles County.
Despite the attractiveness of the Beach Cities for visitors, there are few luxury hotels in the area.
As shown in Table 8, only the Beach House in Hermosa Beach, the Portofino in Redondo Beach
and the Shade in Manhattan Beach are considered upscale or luxury. What’s more, neither the
Portofino nor the Shade has beachfront exposure. In all of Los Angeles County, there are very
few upscale beach-front hotels. Consequently, the opportunity in Hermosa Beach to develop an
upscale beachfront hotel represents an extremely valuable option.
H2O, a 30-room “mid-range” boutique hotel located on Hermosa Beach at 15th Street, is the
most recent hotel property developed in Hermosa Beach. The Beach House continues to perform
well relative to its competitive set, and has room rates of approximately $325-$340 per night.
Owned and operated as a fractional ownership, in which rooms unoccupied by the owners are
rented as typical hotel rooms, the Beach House achieved high occupancy levels of near 85-90
percent prior to the pandemic. In the latter half of 2020, it reported occupancy levels of 65
percent, despite the effects of the Covid-19 pandemic. Because ground floor rooms front directly
on the Strand, the Beach House has effectively privatized strand/beach frontage for hotel guests.
As shown by Table 8, Manhattan Beach has not seen a new hotel delivery since the Shade Hotel
was completed in 2012. Another Shade Hotel was completed in Redondo Beach in 2016, along
with a Hilton in 2014 and a Homewood Suites in 2017. These three hotels have added nearly 380
rooms to Redondo Beach’s hotel inventory over the past seven years.
In Hermosa Beach, the envisioned Mermaid site hotel, on the other hand, had the potential to be
strongly catalytic. The site on the corner of Pier Plaza and the Strand is arguably the best
available commercial land between Redondo Beach and Manhattan Beach. If operated as an
upscale or luxury hotel, it could become a landmark beachfront destination, generate significant
economic and fiscal impacts, and provide residents and Beach City visitors with an upscale
alternative to current Pier Plaza bars and restaurants. This, in turn, could influence tenanting
decisions by Pier Plaza and greater downtown property owners and lead to a diversification of
current uses.
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Table 8 Beach Cities Hotel Inventory: Existing and Pipeline
Name Year Built Category Rooms
Hermosa Beach
Current
Beach House 1998 Luxury 96
Grandview Inn 1973 Economy 17
H2O Hermosa 2020 Mid-Range 30
Hampton Inn 2002 Economy 70
Holiday Inn Express 2001 Economy 80
Hotel Hermosa 1990 Mid-Range 80
Quality Inn 1986 Economy 68
Sea Sprite Ocean Front Motel 1957 Economy 39
480
Manhattan Beach
Current
Belamar Hotel 1961 Mid-Range 134
Crimson Hotel 1988 Economy 45
Hawthorn Suites 2003 Mid-Range 53
Hi View Inn and Suites 1952 Economy 22
Manhattan Beach Marriott 1986 Mid-Range 373
Manhattan Village Inn & Suites 1986 Economy 18
Residence Inn Manhattan Beach 1985 Mid-Range 176
Sea View Inn 1962 Mid-Range 37
Shade Hotel 2012 Luxury 38
Wave Hotel 1995 Economy 44
940
Redondo Beach
Current
Best Western Plus 1979 Economy 108
Best Western Redondo Galleria 1984 Economy 51
Sonesta [1]1986 Mid-Range 350
Hilton Garden Inn 2014 Mid-Range 147
Homewood Suites 2017 Mid-Range 184
Marriott Residence Inn 2014 Mid-Range 172
Moonlite Inn 1986 Economy 23
Pacific Coast Inn 1960 Economy 20
Portofino Hotel & Marina 1962 Upscale 161
Ramada Limited Redondo Beach 1990 Economy 40
Redondo Beach Hotel 1979 Mid-Range 112
Redondo Inn and Suites 1955 Economy 36
Redondo Pier Inn 1987 Economy 37
Seaside Motel 1962 Economy 27
Shade Redondo Beach 2016 Luxury 45
1,513
Current Total 2,933
[1] Formerly the Crowne Plaza
Source: CoStar, Hotel Websites & Staff; Economic and Planning Systems, Inc.
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7. OFFICE TRENDS
As shown in Table 9, Hermosa Beach’s office inventory stands at approximately 367,000 square
feet, and remains small compared to Manhattan Beach and Redondo Beach, which have about
1.6 million and 2.4 million square feet of office space respectively. As of Q4 2020, Hermosa
Beach’s office inventory is entirely Class B and C office space, though the construction of
Skecher’s global headquarters will deliver about 75,000 square feet of Class A space in 2022.
The City’s office market inventory has grown by 5 percent in the last 10 years, a growth rate
higher than both Manhattan Beach and Redondo Beach, both of which saw negligible growth over
that same period.
Overall, the Hermosa Beach market for Class B and C office space in Hermosa Beach occupies a
viable segment priced below Manhattan Beach but above Redondo Beach. As of the fourth
quarter of 2020, as shown in Figure 4, Class B and C rents in Hermosa Beach average $3.75 per
square foot and are trending up, compared with $3.17 per square foot in Redondo Beach and
$4.25 per square foot in Manhattan Beach.
Historical office vacancies, as shown in Figure 5, indicate considerable volatility in the Hermosa
Beach office market, compared with the other Beach Cities. As of the fourth quarter of 2020, the
Hermosa Beach office vacancy rate of 11.7 percent is significantly higher than the 3.9 percent
rate in Manhattan Beach and the 5.7 percent rate in Redondo Beach.
Table 9 Beach Cities Class B and C Office Inventory
As of 4Q 2020 Hermosa Beach Manhattan Beach Redondo Beach
Rents (/Sq.Ft.)$3.75 $4.27 $3.17
Vacancy 11.7%3.9%5.7%
Inventory (Sq Ft.)366,990 984,158 2,053,563
Sources: CoStar; EPS
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Figure 4 Beach Cities Historical Class B and C Office Rents
Figure 5 Beach Cities Historical Class B and C Office Vacancy
$3.75
$4.27
$3.17
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Hermosa Beach Manhattan Beach Redondo Beach
11.7%
3.9%
5.7%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
Hermosa Beach Manhattan Beach Redondo Beach
Source: CoStar, Economic & Planning Systems, Inc.
Source: CoStar, Economic & Planning Systems, Inc.
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8. HERMOSA BEACH ISSUES AND OPPORTUNITIES
Area Description
Hermosa Beach’s Downtown District is the commercial heart of the City. With approximately 18.5
acres of commercially zoned land area, the Downtown District hosts a majority of the City’s
boutique retail outlets and a large proportion of its hotel and office uses. As recently as the
1980s, Downtown Hermosa Beach was marked by dilapidated and abandoned buildings, high
levels of vagrancy, and recurring public safety issues associated with the area’s rough-and-
tumble bars. City investments in the 1990s and early 2000’s in public infrastructure, most
notably the redesign of Pier Plaza and Upper Pier Avenue, helped transform Downtown Hermosa
Beach into a popular daytime and nightlife destination.
The Downtown District centers on the intersection of Pier and Hermosa Avenues and extends
along Pier Avenue from the Strand through Pier Plaza to Valley Boulevard and along Hermosa
Avenue from 15th Street to 8th Street. The western end of Pier Avenue terminates with Pier Plaza,
a large pedestrian-only area that attracts visitors from throughout the County for its access to
the Pier, great outdoor dining options, events, and nightlife. Most of Downtown’s busiest
restaurants and bars cluster on Pier Plaza and the Pier Avenue/Hermosa Avenue intersection,
while the streets north, south, and east host a variety of retail, personal service and food serving
business, and some lodging uses. The other significant retail clusters include a number of office
uses on Pier Avenue and a concentration of health and beauty uses in upper Pier Avenue.
Several physical characteristics make Downtown Hermosa Beach unique. As Pier Avenue
descends to the intersection with Hermosa Avenue, it follows a broad and dramatic sweep, which
allows for a pleasing streetscape experience (enhanced greatly by the recently completed Pier
Avenue Streetscape Project) that provides numerous focal points for commercial activity. Where
Pier Avenue meets Hermosa Avenue, the grade ends, leaving a full flat block between Hermosa
Avenue and The Strand, providing Pier Plaza with an unmediated connection to the beach.1
The PCH Corridor is the largest contributor to sales tax revenue in Hermosa Beach, generating
nearly $1 million for the City in FY2019-2020, as shown in Table 11, which is nearly half of the
City’s sales tax revenue. Downtown Hermosa Beach is also a significant contributor to the City’s
fiscal base, generating nearly $648,000 for the City’s General Fund, and accounting for a third of
all sales tax revenue collected by the City. However, the Downtown has seen its volume of sales
tax revenue drop by over 20 percent from the prior year, the largest amount of any area in the
City. This decline is likely attributable largely to the impacts of the covid-19 pandemic.
However, it should be noted that sales taxes represent a relatively small portion of the City’s
overall fiscal revenues, amounting to approximately 12 percent of all General Fund revenues in
fiscal 2019-20. (See Appendix C for fiscal revenue breakdowns and historical detail.)
1 Other area beachfront commercial districts in LA County, such as in Santa Monica, Malibu,
Manhattan Beach, and Redondo Beach, tend to be separated from the beach by steep grades or major
roads.
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Table 10 Hermosa Beach Sales Tax Revenue, FY 2019-2020
Issues
Despite location advantages and fiscal contributions, Downtown Hermosa Beach has not—
according to area land use professionals and residents—fulfilled its potential as a commercial
district for residents and visitors. Over the course of this analysis, several issues regarding the
current pattern of Downtown land uses and tenanting emerged.
A common concern is over Pier Plaza tenants and whether they represent the best fit for City
residents. Conflict between late-night Pier Plaza revelers and neighborhood residents led to the
Measure B “Quiet Nights” ballot initiative, which aimed to reduce late-night operating hours of
Pier Plaza establishments. As shown in Table 11, establishments with CUPs granting late-night
operating privileges make up nearly 48,000 square feet of area in the Downtown Core, more
than half of all the restaurant and bar space there. While the loss of the initiative implies that
residents do not believe a mandated reduction in late-night operating hours is the best way
necessarily to manage the issue, many also believe the bar scene on Pier Plaza deters visitation
from families and upscale tenants. At minimum, Pier Plaza lacks sufficient alternatives to the
current slate of boisterous and young adult-oriented establishments.
As noted in the retail assessment, Hermosa Beach experiences leakage in several retail
categories, most notably apparel and general merchandise. This corresponds with anecdotal
findings from interviewees about the lack of boutiques and women’s apparel shops of the quality
found in Downtown Manhattan Beach. Indeed, as shown in Table 11, apparel occupies just
20,000 square feet or 4 percent of Downtown District commercial space. Interviewees
acknowledge that while Manhattan Beach retail tenanting has become very upscale, feat uring
tenants more typically associated with Beverly Hills and South Coast Plaza, there is a strong and
unmet opportunity in Hermosa Beach for retailers to operate at a slightly lower price-point.
Conversely, the health and beauty category2 (which includes services ranging from hair and nail
salons to gyms and yoga studios) may be over-represented. With almost 52,000 square feet in
the Downtown District making up 9 percent of the total commercial area, health and beauty is
the largest single retail category. As shown on Figure 8, health and beauty establishments
2 Health and Beauty in this analysis is considered a retail category subset.
Geographic Area FY19-20 1-Yr Change Share
PCH $938,320 -7%48.4%
Downtown $648,316 -22%33.4%
Pier/Valley/Monterey $265,014 -8%13.7%
Aviation $86,840 1%4.5%
Source: HDL/City of Hermosa Beach, Economic & Planning Systems, Inc.
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cluster on upper Pier Avenue and along the eastern side of Hermosa Avenue. Health and beauty
uses are typically found in neighborhood retail centers rather than shopping districts, so their
concentration may be impeding development of a stronger specialty retail orientation for the
Downtown District.
Downtown retail property and leasing management reflects a wide range of sophistication. While
the average Downtown rent of $3.53 per square foot, actual rents—according to brokers—vary
widely, from below $2 per square foot to above $6. This results in an inconsistent tenant mix
with many non-competitive operators. The inconsistencies are attributable to a number of
nonresidents, non-professional, long-term custodial land owners who operate their properties
without close regard to market rates. As shown on Table 14, private land owners who have
owned since before 2003 control 34 percent of the Downtown land area. Furthermore,
fragmented land ownership, resulting in a large number of land owners, makes coordinated
action difficult. Fully 63 percent of the Downtown land area is held by owners who control less
than three parcels, and parcels themselves are small in size.
The Pier Avenue Streetscape project made vast improvements to the livability and walkability of
Pier Avenue, but according to interviewees, there are still too few places for pedestrians and
shoppers to congregate, sit, and enjoy the surroundings. In general, there is a lack of outdoor
seating in the area, and the design of Pier Plaza can feel barren at less crowded times. This
detracts from Downtown’s sense of place and ability to attract day-time visitors.
Opportunities
Several strategies are available to the City to realize its goal of promoting economic development
in Hermosa Beach, as well as commercial districts along PCH and Aviation Boulevard. Most of
these are opportunistic in nature, as they ultimately rely on market-driven change led by the
private sector.
Land ownership and usage patterns in Downtown Hermosa Beach have undergone a significant
amount of transition in recent years. Since 2010, 24 percent of the Downtown land has changed
hands, as shown in Table 14. This activity is attributable to several driving factors: the end of
the recession; the continued in-migration of wealthy residents to Hermosa Beach and the Beach
in general; growth of high-paying jobs to Hermosa Beach and the Beach Cities; and public
investment into streetscape improvements on Pier Avenue.
The proposed Pier/Strand Hotel at the Mermaid site hotel represent a great opportunity to
catalyze change in Pier Plaza, combining strong underlying market factors with a strategic
location. The site is one of the best commercial locations on the entire Strand between Redondo
Beach and Manhattan Beach due to its frontage on both Pier Plaza and the Strand. The costly
land assembly reflects confidence in the market to support luxury hotel rates. The site dominates
the northwestern corner of Pier Plaza, so new construction will strongly influence its look and feel
going forward. With very few alternatives for upscale or luxury beachfront hotels in Los Angeles
County, the proposed Mermaid site hotel could become—like Shutters and Casa del Mar in Santa
Monica and Terranea in Palos Verdes—a landmark destination drawing visitors from all over the
country. Inclusion of ground floor public space, such as a lobby bar, could provide an amenity for
locals and day visitors as well as guests, providing an upscale alternative to current Pier Plaza
bars and restaurants. This, in turn, could influence tenanting decisions by Pier Plaza land owners
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and lead to a diversification of current uses. Finally, the economic impacts from spending by
affluent guests and the fiscal impacts from new Transient Occupancy Tax (TOT) and sales tax
could be very significant. City support for a top-quality hotel on the site thus presents a high-
leverage opportunity to effect positive change. One proactive idea would be for the City to
consider leveraging its ownership of the parking lot on 13th Street east of the hotel site to
enhance hotel feasibility. Use of the parcel to expand the hotel footprint—rather than for a
parking structure—could allow inclusion of more amenities, enhancing its appeal to guests and
the community at large. The requirement for on-site, underground parking on this site, likely
contributed to the project to be deemed infeasible and shelved. Finding alternatives to on-site
parking may allow a similar project to go forward.
Similarly, the City should look to encourage and support other catalytic projects Citywide as they
materialize. Likewise, projects on the strategically located eastern corners of Pier Plaza currently
occupied by Bank of America and Citibank, could also have a catalytic effect (although retail
banks are typically long-term land users).
The compact and walkable nature of Downtown Hermosa Beach lends itself to a district parking
strategy that encourages visitors to park centrally and circulate on foot. Consequently, provision
of centralized public and public-private parking solutions could increase pedestrian traffic and
enhance retail vitality. In addition, the option for developers to provide parking through in -lieu
fees, as is already offered by the City, can help some physically constrained sites become more
viable for new development. However, the current in-lieu fee which is roughly equivalent to the
per-stall development cost in a parking structure, and the requirement for some on-site parking,
are considered restrictive by many local land use professionals, especially given high current
parking requirements mandated by city code for commercial uses, restaurants in particular. The
City can ease the burden on developers by lowering in-lieu fees, by removing requirements for
providing a portion of the parking requirements on-site and by lowering parking requirements
outright.3 There is strong potential for the City to offset these costs with increases in sales tax,
business license tax, TOT, and other taxes associated with new commercial activity.
Streetscape improvements on Hermosa Avenue and enhancements on Pier Plaza could help the
area more fully realize the potential of its natural physical advantages to become a more
attractive destination for day-time visitors, families, and tourists. Such improvements could
enhance the sense of arrival, calm traffic, upgrade the pedestrian experience, facilitate bicycle
transport, and refine the overall identity of the area. This could help create a “virtuous circle”
that attracts more visitors, who increase the market potential for new tenants, who in turn draw
more visitors. For example, focused improvements on the eastern side of Hermosa Avenue that
encourage a more vibrant street life can help bring out the redevelopment potential represented
by relatively large parcels and floorplates, frontage that defines (and extends) the edge of the
Pier Plaza activity, and traffic counts consistent with the location at the nexus of the Downtown
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District. Furthermore, such improvements can help improve circulation between Upper Pier
Avenue and Pier Plaza and facilitate a stronger commercial flow between the two areas.4
In the commercial centers along Aviation Blvd. and PCH, there is also the opportunity to improve
the streetscape and pedestrian infrastructure in order to enhance their respective retail
environments. It was noted that Aviation Blvd. in particular would benefit from beautification and
traffic-calming measures. These commercial centers present especially attractive opportunities
for investment, given their location along main arterials. This lends them a higher degree of
accessibility to those living inland in Hermosa Beach, as well as residents from surrounding
communities. In terms of the potential for additional retail offerings in these areas, the retail
leakage statistics discussed in Chapter 5 suggest that establishments offering apparel, general
goods, and garden shops have the potential to capture a market that currently shops for these
items outside of Hermosa Beach.
As previously discussed, Hermosa Beach is predominantly a bedroom community with a
relatively small day population. In this regard, Hermosa is at a competitive disadvantage to
Manhattan Beach, which has a much larger day population, especially for higher quality
restaurants that depend in part on lunch business. Nonetheless, continued growth of office space
for knowledge workers in the Downtown area, whether as part of single- or mixed-use
developments, can create a greater workday buzz and stimulate restaurant and retail
development directly. Additionally, the trend toward working from home spurred by the Covid-
19 pandemic is likely to persist, and will improve spending and vitality downtown.
Conclusion s
Realization of any of these opportunities could yield economic growth and help positively
transition the Downtown Core. However, it will take a combination of actions over time by both
public and private sectors before a full retail transformation will take place, coupled with a
refreshed perception of the Downtown Core as a great place to visit and hang out by day, by
night, and for a broad range of users including tourists, locals, and families.
With regard to business districts elsewhere in the City, Aviation Blvd. and PCH are established as
commercial nodes with robust retail environments. PCH in particular generates nearly half the
City’s sales tax. However, key stakeholders have noted that both corridors could benefit from
visual and infrastructural improvements in order to attract higher numbers of potential
customers. This is especially the case on Aviation Blvd., which is viewed as having a greater
potential to cater to pedestrians but will require a higher amount of investment in the built
environment. Furthermore, despite representing some of the City’s most popular businesses,
business owners in these districts feel there is a disproportionate amount of attention paid to Pier
Ave. and the Downtown area.
4 For a full set of streetscape improvement recommendations, see “Hermosa Beach Downtown
Economic Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group
and Economic & Planning Systems, 12/2013
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Catalytic projects like new hotels, with or without the continued office development, will increase
day population and demand for upscale retail and services. Public support through district
parking strategies, reduced parking requirements, and possibly the provision of subsidized
parking can help underwrite a desirable range of new development and rehab projects.
Additional changes to the built environment through streetscape improvements can upgrade the
“sense of place” and make the City’s commercial districts more desirable destinations for both
residents and visitors. Under these improved conditions, retailers will seek to exploit the new
market opportunity. And because retailers tend to follow other retailers, successful early movers
will quickly be joined.
Certain categories of retail in particular could be a strong fit for a revitalized Downtown, and the
PCH and Aviation Corridors. As discussed earlier, women’s apparel is an area of opportunity,
along with athletic clothing and sports gear. Home furnishing stores are underrepresented in the
city as well. Better restaurants as well as cafes that encourage gathering and lingering would
broaden Hermosa Beach’s reputation as an entertainment destination and address residents’
stated desire for more options. Ultimately, once a certain critical mass of change has occurred,
anchor retailers could be attracted to become a focal point for the City’s commercial districts.
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Table 11 Downtown District by Land Use
Vertical
Sq.Ft.(3)
Share Vertical
Sq.Ft.(3)
Share Vertical
Sq.Ft.(3)
Share
Retail and Services
Eating and Drinking(4)
Food/Spirits Extended Hours 51,191 9%47,773 9%3,419 1%
Food/Spirits Closes at Midnight 27,379 5%17,236 3%10,143 2%
Food/Beer & Wine 10,084 2%4,872 1%5,212 1%
Food/No Alcohol 25,823 5%19,248 3%6,575 1%
Subtotal Eating and Drinking 114,478 20%89,128 16%25,350 5%
Other Retail and Services
Health & Beauty 51,624 9%23,588 4%28,035 5%
Sports 22,100 4%10,797 2%11,303 2%
Apparel 20,426 4%12,326 2%8,100 1%
Souvenirs & Gifts 19,897 4%1,552 0%18,345 3%
Bank 11,314 2%11,314 2%- 0%
Liquor 4,445 1%2,820 1%1,625 0%
Market 3,720 1%2,560 0%1,160 0%
Wine Shop 2,763 0%- 0%2,763 0%
Subtotal Other Retail and Services 136,290 24%64,958 12%71,332 13%
Total Retail and Services 250,767 45%154,086 27%96,681 17%
Other Commercial
Professional Office 141,938 25%29,514 5%112,424 20%
Hotel 90,237 16%81,269 14%8,968 2%
Vacant 39,080 7%29,767 5%9,313 2%
Residential 36,351 6%12,963 2%23,388 4%
Industrial 3,476 1%- 0%3,476 1%
Subtotal Other Commercial 311,082 55%153,514 27%157,568 28%
TOTAL 561,849 100%307,599 55%254,250 45%
(1) Rectangle formed by the Strand, eastern Hermosa Avenue, 14th Street, and 10th Street
(2) Pier Avenue from Hermosa Ave. to Valley Dr.; Strand to Hermosa Ave. between 14th St. and 16th Ct., 10th St. and 8th St.
(3) Vertical Sq.Ft. from CoStar and EPS estimates, except as described in footnote (4)
(4) Eating and drinking sub-classifications based on City of Hermosa Beach CUPs
Sources: The City of Hermosa Beach, CoStar, Economic & Planning Systems
Downtown District Core Downtown
District (1)
Non-Core Downtown
District (2)
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Figure 6 Downtown Hermosa Beach by Land Use
Notes:
(1) Categories designated “Multiple Tenant Retail” include tenants from all eating and drinking categories as
well as from the apparel, sports, souvenirs & gifts, health and beauty, and professional office categories
(2) Categories designated “Office Over Retail” include professional office as well as uses in health and beauty,
apparel, Food/no alcohol, and banking.
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Table 12 Downtown Hermosa Beach by Ownership Pattern
Table 13 Downtown Hermosa Beach by Acquisition and Construction Activity
Land Owner
MP Core 200 930,952 53 23.8%
City of Hermosa Beach 396,260 16 10.1%
Reg8 Plaza Hermosa LLC 246,712 7 6.3%
Melvin and Marie Kausen Trust 108,070 7 2.8%
Resort Sea View Hermosa LLC 96,148 6 2.5%
Daniel and Margaret Gruen Trust 74,379 5 1.9%
Iskandar Family Trust 62,458 5 1.6%
Frederic and Jean Taylor Trust 50,536 3 1.3%
Moise Hendeles Trust 48,074 3 1.2%
S and P Hermosa Parent LLC 33,947 7 0.9%
South Bay 4 LLC 17,028 6 0.4%
Damoder and Sumitri Reddy Trust 13,356 4 0.3%
John and Laura Warren Trust 12,023 3 0.3%
Refoua LLC 9,606 3 0.2%
Celina C Douglas Trust 8,486 3 0.2%
All Other Owners 1,802,463 177 46.1%
Total 3,910,500 308 100%
Sources: City of Hermosa Beach; Los Angeles County Assessor; EPS
Square Footage Number of
Parcels Owned Share
AC Sq.Ft.Share AC Sq.Ft.Share AC Sq.Ft.Share
Recent Construction(3)0.7 31,229 4%0.9 40,024 5%1.6 71,253 9%
Acquired After 2010 1.5 63,223 8%2.5 107,341 13%3.9 170,563 21%
Acquired between 2004 and 2010 2.7 117,792 15%1.9 84,111 10%4.6 201,903 25%
Acquired between 1993 and 2003 1.7 75,460 9%1.8 77,511 10%3.5 152,971 19%
Acquired Before 1993 0.9 38,407 5%0.7 32,359 4%1.6 70,766 9%
City-Owned Land 1.9 82,752 10%1.1 48,353 6%3.0 131,105 16%
Transaction Data Not Available - - 0%0.1 5,876 1%0.1 5,876 1%
Total 9.4 408,863 51%9.1 395,574 49%18.5 804,438 100%
(1) Rectangle formed by the Strand, Hermosa Avenue, 14th Street, and 10th Street
Sources: The City of Hermosa Beach; CoStar; Economic & Planning Systems, Inc.
(3) "Recent Construction" refers to projects with long remaining usable life; these date from 1998 (Beach House
Hotel) to 2013 (205 Pier Ave.)
Category Core Downtown(1)Other Downtown(2)Total Downtown
(2) Pier Avenue from Hermosa Ave. to Valley Dr.; the Strand to Hermosa Ave. between 14th St. and 16th Ct. and
between 10th St. and 8th St.
604
APPENDIX A:
Business Community Input
605
• Business Community Interviewees:
o Jessica Accamando – Hermosa One / Creative Fish
o Marje Bennetts – Beach House Hotel
o Tony Cordi – The Innate Group
o Jason Cortes – The Stanton
o Jon David – Upper Pier Ave. Property Owner
o Lori Ford – Gum Tree
o Ed Hart – Maximus Salon
o Bob Jones – Financial Consultant
o Mike Lacey – Comedy and Magic Club
o Jason Muller – Beach City Capital
o Jon Starr - Starr Design
• Review of Economic Development Stakeholders Advisory Group
Notes July 2020 through March 2021
• Feedback received from Economic Development Committee
Meeting held March 1, 2021
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APPENDIX B
2014 Report Key Findings
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1. The Hermosa Beach Downtown District is the commercial heart of the City—at once
the City’s primary shopping district, gathering area, and visitor attraction.
With approximately 18.5 acres of commercially zoned land on either side of Pier Avenue
between the Strand and Valley Boulevard and along Hermosa Avenue between 8th Street and
15th Street, the Hermosa Beach Downtown District hosts a majority of the City’s retail outlets
and a large proportion of its hotel and office uses. Pier Plaza, with its large assortment of
bars and restaurants, is a popular nightlife destination for visitors from throughout the
County. Sales tax revenues from Downtown Hermosa Beach are significant, accounting for 29
percent of all sales tax revenue collected by the City.
2. Hermosa Beach enjoys unique physical qualities that make it a highly desired
destination for residents and visitors
Clean air, the broad and sandy beach, and the ocean beyond provide Hermosa Beach with its
defining amenity. But unlike Manhattan Beach, Redondo Beach, or most of the other beach
cities in Los Angeles County, Hermosa Beach has commercially zoned parcels that directly
about the beach at grade. This gives Downtown Hermosa Beach, and Pier Plaza in particular,
an intimate relationship with the beachfront that creates potential for highly differentiated
hotel and retail offerings. Furthermore, Pier Avenue meets Pier Plaza after a dramatic
sweeping quarter-mile descent from Pacific Coast Highway, providing a pleasing pedestrian
experience and numerous focal points for commercial activity.
3. The three Beach Cities of Hermosa Beach, Manhattan Beach, and Redondo Beach
share geographical proximity and demographic characteristics to function as
closely inter-related markets. Consequently, area economic trends, especially those
originating from Manhattan Beach, are expected to continue to influence Hermosa
Beach.
Each of the three Beach Cities has benefited from the highly desired beach location to
become an attractive place to live, work, and play. Compared to the city of Los Angeles, all
are affluent, well-educated, and carry high property values—extremely high in the case of
Manhattan Beach. Hermosa Beach is differentiated by being the smallest and most casual of
the three, with the youngest residents, highest proportion of renters, lowest rate of family
formation, and second-highest level of income. However, due to rapidly appreciating land
costs in Manhattan Beach, Hermosa Beach has begun to absorb spill-over residential
demand, which land use professionals believe will narrow the wealth gap with Manhattan
Beach, reflect in increased home ownership levels, and lead to increased family
representation.
4. Despite its location and demographic advantages, the Downtown Core has not
fulfilled its potential as a commercial district for residents and visitors, according to
area land use professionals.
Pier Plaza’s bars and restaurants host a boisterous nightlife scene that has increasingly
generated conflict with neighborhood residents. According to local brokers and real estate
professionals, the current Pier Plaza tenant mix has tended to discourage a broader range of
retail and commercial activities. In turn, the lack of diversity in dining and shopping options
has helped perpetuate the dominance of current uses. However, the decisive loss of the
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proposed Measure B “Quiet Nights” ballot initiative implies that residents do not believe a
mandated reduction in late-night operating hours is necessarily the best way to manage the
issue. Other long-term impediments to the realization of Downtown Core potential include
legacy property ownership, which has resulted in inconsistent property management and
tenanting; restrictive requirements for the provision of new parking, which have encumbered
new development; and a small day-time population (excluding summer weekend
beachgoers), which limits potential day-time retail demand.
5. Land ownership and usage patterns in the Hermosa Beach Downtown District have
undergone a significant amount of organic, market-driven transition in recent years
providing momentum for further public and private investment.
For many years, land ownership in Downtown Hermosa Beach was dominated by long-term
custodial land owners, which led to a generally slow pace of change. However, since 2010,
24 percent of the Downtown District land has changed hands, 18,000 square feet of new
construction has occurred, and hotels proposing over 130 new rooms are in planning or
under development. This activity is attributable to several driving factors: the end of the
recession; the continued in-migration of wealthy residents to Hermosa Beach and the Beach
Cities in general; growth in the number of high-paying jobs in Hermosa Beach and the Beach
Cities; and public investment in streetscape improvements on Upper Pier Avenue. This
primarily market-driven momentum for change provides a strong basis for successful
revitalization strategies.
6. New hotel development in Downtown Hermosa Beach, in particular the proposed
hotel for the former Mermaid site, represents the biggest opportunity for near-term
transformation of Pier Plaza.
The proposed Mermaid site hotel represents a rare opportunity to catalyze change in Pier
Plaza, combining strong market factors with a strategic location. The site is one of the best
commercial locations on the entire Strand between Redondo Beach and Manhattan Beach,
due to its frontage on both Pier Plaza and the Strand. The assembly of land, acquired in 2013
at very high cost, reflects confidence in the market to support luxury hotel rates. Because the
site dominates the northwestern corner of Pier Plaza, new construction will strongly influence
its look and feel going forward. With very few alternatives of upscale or luxury beachfront
hotels in Los Angeles County, the proposed Mermaid site hotel could become—like Shutters
and Casa del Mar in Santa Monica and Terranea in Palos Verdes—a landmark destination
drawing visitors from all over the country. Inclusion of ground floor public space, such as a
lobby bar, could provide an amenity for locals and day visitors as well as guests, providing an
upscale alternative to current Pier Plaza bars and restaurants. This, in turn, could influence
tenanting decisions by Pier Plaza land owners and lead to a diversification of current uses.
Finally, the economic impacts from spending by affluent guests and the fiscal impacts from
new Transient Occupancy Tax (TOT) and sales tax could be very significant. City support for
a top-quality hotel on the site presents a high-leverage opportunity to effect positive change.
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7. Retail revitalization and diversification in the Hermosa Beach Downtown District
will likely occur gradually as a result of improvements in several underlying
conditions.
Despite its high population density and affluence, Downtown Hermosa Beach has not fulfilled
its potential due to factors discussed above. Consequently, the quality and diversity of many
existing retail establishments is not on par with expectations of residents or potential visitors
from other Beach Cities. For example, the current retail tenant mix along Pier Avenue and
Hermosa Avenue appears to be over-represented in the health and beauty sector (uses more
typical of a neighborhood center than a retail shopping district), and under-represented in
the apparel sector, where the City exhibits significant retail leakage. Actions that increase the
day-time population or create interest in the Downtown District as a day-time destination can
create positive conditions that induce retail development over time. These actions may
include hotel and office development, which increases the day-time population; streetscape
improvements to create a better and more attractive sense of place; and public parking
improvements that reduce impediments to visitation and offset the costs of new
development.
8. Development of office space catering to knowledge-work sectors such as finance,
real estate, and professional services, represents a meaningful opportunity for
Downtown District economic development.
The office market in the City of Hermosa Beach is not as large as that in Manhattan Beach
and Redondo Beach, but in the Downtown District, high rents, low vacancies, and a growing
cluster of knowledge workers suggests market support for new office space there. Since
2000, over 60 percent of new office growth in the city has occurred in the Downtown District,
specifically at 200 Pier Avenue, 205 Pier Avenue, 338 Pier Avenue, and 400 Pier Avenue,
buildings that cater to tenants in knowledge work fields such as finance, real estate, and
information. This reflects a larger trend in which knowledge workers, who can work anywhere
with a network connection, are choosing workplaces closer to home in areas offering a high
quality of life. Area brokers believe this trend represents a strong and continuing opportunity
for the Beach Cities. One positive consequence of new Downtown office growth is increased
day-time population, which generates additional demand for retail and services.
9. Provision of public shared centralized parking may help encourage catalytic
projects in the Downtown Core
The compact and walkable nature of Downtown Hermosa Beach lends itself to a district
parking strategy that encourages visitors to park centrally and circulate on foot.
Consequently, provision of centralized public and public-private parking solutions could
increase pedestrian traffic and enhance retail vitality. In addition, the option for developers
to provide some required parking through in-lieu fees, as is already offered by the City, can
help some physically constrained sites become more viable for new development. However,
the current in-lieu fee, which is roughly equivalent to the per-stall development cost in a
parking structure, is considered restrictive by many local land use professionals, especially
given high current parking requirements mandated by city code for commercial uses, in
particular restaurants. The City can ease the burden on developers by lowering in-lieu fees
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and by lowering parking requirements outright.5 There is strong potential for the City to
offset the associated loss of revenue with increases in sales tax, business license tax, TOT,
and other taxes associated with new commercial activity.
10. Public investment in streetscape improvement is a strong tool for the City to
encourage catalytic projects.
Streetscape improvements on Hermosa Avenue and Pier Plaza could help the area more fully
realize the potential of its natural physical advantages to become a more attractive
destination for day-time visitors, families, and tourists. Such improvements could enhance
the sense of arrival, calm traffic, upgrade the pedestrian experience, facilitate bicycle
transport, and refresh and update the image of the area. This could help create a “virtuous
circle” that attracts more visitors, who increase the market potential for new tenants, who in
turn draw more visitors. For example, focused improvements on the eastern side of Hermosa
Avenue that encourage a more vibrant street life can help bring out the redevelopment
potential represented by relatively large parcels and floorplates, frontage that defines (and
extends) the edge of the Pier Plaza activity, and traffic counts consistent with the location at
the nexus of the Downtown District. Furthermore, such improvements can help improve
circulation between Upper Pier Avenue and Pier Plaza and facilitate a stronger commercial
flow between the two areas.6
5 For a full set of parking strategy recommendations, see “Hermosa Beach Downtown Economic
Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group and Economic
& Planning Systems, 12/2013
6 For a full set of streetscape improvement recommendations, see “Hermosa Beach Downtown
Economic Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group and
Economic & Planning Systems, 12/2013
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APPENDIX C
Supporting Data
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Appendix 1 Hermosa Beach Fiscal Revenues, FY10-11 to FY19-20
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20
Property Tax Sales and Use Tax Transient Occupancy Tax
Business License Tax Utility Users Tax Other Taxes
Licenses and Permits Fines and Forfeitures Use of Property and Money
Intergovernmental/State Service Charges Other Revenue
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Appendix 2 Hermosa Beach Fiscal Revenues, FY19-20 Detail
Revenue Source Category FY19-20 Share
Property Tax $19,045,242 44.6%
Sales and Use Tax $3,146,342 7.4%
Transient Occupancy Tax $3,505,250 8.2%
Business License Tax $1,184,426 2.8%
Utility Users Tax $2,147,057 5.0%
Other Taxes $1,252,169 2.9%
Licenses and Permits $1,213,724 2.8%
Fines and Forfeitures $2,365,086 5.5%
Use of Property and Money $1,006,122 2.4%
Intergovernmental/State $127,256 0.3%
Service Charges $7,523,765 17.6%
Other Revenue $165,416 0.4%
Total $42,681,855 100.0%
Sources: City of Hermosa Beach; EPS
614
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0358
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
CALLING AND GIVING NOTICE AND CERTAIN OTHER
RESOLUTIONS NECESSARY FOR HOLDING
THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 8, 2022
(City Clerk Myra Maravilla)
Recommended Action:
Staff recommends Council:
1.Adopt Resolution calling and giving notice of the election for certain officers and one or more
measures (Attachment 1);
2.Adopt Resolution to permit a special runoff election for elective officers in the event of a tie
vote (Attachment 2);
3.Adopt Resolution to request the County of Los Angeles consolidate the City of Hermosa
Beach General Municipal Election with the Statewide General Election and render full services to
the conduct of the election (Attachment 3); and
4.Adopt Resolution to adopt regulations for candidates for election office pertaining to candidate
statements (Attachment 4).
Executive Summary:
On Tuesday, November 8, 2022, the City will conduct a General Municipal Election consolidated with
the Statewide General Election for the election of three members of the City Council, each to a term
of four years ending in November 2026, and at least one ballot measure. Staff recommends City
Council adopt the resolutions as outlined in staff’s recommendations (Attachments 1, 2, 3 and 4).
Background:
The election resolutions presented for adoption are standard actions required of the City Council per
the California Elections Code and other provisions of State of California laws to hold the General
Municipal Election on November 8, 2022.
The initiative petition filed by Colton Chacker to repeal the ban on cannabis in the City of Hermosa
Beach will be on the ballot with the possibility of additional measure(s) submitted by the City Council.
All election resolutions containing ballot measure information, including priorities for submitting
arguments and rebuttal arguments, will be presented to the City Council on or before the deadlines
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set forth by Los Angeles County for the printing of the Sample Ballot Booklet.
Discussion:
On November 8, 2022, the City of Hermosa Beach will conduct a General Municipal Election,
conducted by the County of Los Angeles, for the election of three City Councilmembers, for full four-
year terms ending November 2026 (Attachment 3) and at least one ballot measure. The Election
Information page is located on the City’s website and is regularly updated with key dates and
information for members of the public to review.
The City Clerk would advertise the calling of the election (Attachment 1) through various outlets
including a publication in a local newspaper, a GovDelivery notification, and the City’s social media
outlets. The Candidate Workshop is tentatively scheduled to take place on the first day of the
nomination period, July 18, 2022, at 10 a.m. in the Council Chambers located at City Hall.
Prospective candidates and the media are encouraged to attend and ask questions about the
election process. Nomination papers will be issued to prospective candidates at the conclusion of the
Candidate Workshop. Prospective candidates unable to attend the Candidate Workshop are
encouraged to schedule an appointment with the City Clerk’s office during business hours, Monday
through Thursday between 7 a.m. and 6 p.m.
Should there be a tie vote between two or more of the top three candidates, a special runoff election
would take place (Attachment 2).
California Elections Code Section 13307 allows candidates for a nonpartisan city elective office to
prepare a statement to be included with the Sample Ballot Booklet and mailed to each registered
voter. State law requires that the City Council adopt a policy regarding the candidates’ obligation for
payment for candidate statements and other related matters. State law permits the Council to
authorize an increase of the word limitation for the statement from 200 to 400 words. Past policy has
restricted the statements to 200 words as reflected in the Resolution (Attachment 4). Staff
recommends City Council adopt the same word limitation, 200 words. Staff’s experience is that this
word limit has been sufficient for candidates in past elections.
Additionally, the Resolution (Attachment 4) includes information about the translation of election
materials. All voters who register to vote and select to receive election materials in a language other
than English will automatically receive their election materials in that language.
Resolutions for Adoption:
1.RESOLUTION NO.22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH,CALIFORNIA,CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY,NOVEMBER 8,2022,FOR THE ELECTION OF
CERTAIN OFFICERS AND ONE OR MORE MEASURES TO THE VOTE OF THE PEOPLE AS
REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF CALIFORNIA
RELATING TO GENERAL LAW CITIES
2.RESOLTUION NO.22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
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2.RESOLTUION NO.22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH,CALIFORNIA,PROVIDING FOR THE CONDUCT OF A SPECIAL RUNOFF
ELECTION FOR ELECTIVE OFFICES IN THE EVENT OF A TIE VOTE AT THE GENERAL
MUNICIPAL ELECTION TO BE HELD NOVEMBER 8, 2022
3.RESOLUTION NO.22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH,CALIFORNIA,REQUESTING THE BOARD OF SUPERVISORS OF THE
COUNTY OF LOS ANGELES TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION TO
BE HELD IN THE COUNTY OF LOS ANGELES THE SAME DAY;TO AUTHORIZE THE BOARD
OF SUPERVISORS OF THE COUNTY OF LOS ANGELES TO CANVASS THE RETURNS OF
SAID GENERAL MUNICIPAL ELECTION;AND TO REQUEST THAT THE REGISTRAR-
RECORDER/COUNTY CLERK OF SAID COUNTY BE PERMITTED TO RENDER FULL
SERVICES TO THE CITY OF HERMOSA BEACH RELATING TO THE CONDUCT OF SAID
GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS CODE
SECTION 10403
4.RESOLUTION NO.22-A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
HERMOSA BEACH,CALIFORNIA,ADOPTING REGULATIONS FOR CANDIDATES FOR
ELECTIVE OFFICE PERTAINING TO CANDIDATE STATEMENTS TO BE SUBMITTED TO THE
VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 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:
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.
·2.1 Multiple outreach methods.Consistently engage in community outreach that promote
public participation and ensure Hermosa Beach events are communicated to all segments of
the communities.
Goal 2. The community is active and engaged in decision-making processes.
Policy:
·2.6 Responsive to community needs.Continue to be responsive to community inquiries,
providing public information and recording feedback from community interactions.
Fiscal Impact:
Included in the 2022-23 Preliminary Budget is $110,000 to cover the cost of the November 8, 2022,
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REPORT 22-0358
General Municipal Election. An estimated cost of the election was generated using the election
calculator provided by the Los Angeles County Registrar-Recorder/County Clerk.
Attachments:
1.Draft Resolution Calling and Giving Notice of the Election
2.Draft Resolution in the Event of a Tie Vote
3.Draft Resolution to Consolidate Election with Los Angeles County
4.Draft Resolution to Adopt Regulations for Candidate Statements
5.Election Calendar
Respectfully Submitted by: Myra Maravilla, City Clerk
Noted for Fiscal Impact: Viki Copeland, Finance Director
Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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Page 1 of 2 22-
RESOLUTION 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, CALLING FOR THE HOLDING OF A GENERAL MUNICIPAL
ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022, FOR THE ELECTION
OF CERTAIN OFFICERS AND ONE OR MORE MEASURES TO THE VOTE OF THE
PEOPLE AS REQUIRED BY THE PROVISIONS OF THE LAWS OF THE STATE OF
CALIFORNIA RELATING TO GENERAL LAW CITIES
WHEREAS, under the provisions of the laws relating to general law cities in
the State of California, a General Municipal Election shall be held on November
8, 2022, for the election of Municipal Officers and one or more measures to the
vote of the people.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to the requirements of the laws of the State of
California relating to General Law Cities, there is called and ordered to be held
in the City of Hermosa Beach, California, on Tuesday, November 8, 2022, a
General Municipal Election for the purpose of electing three Members of the
City Council for the full term of four years and one or more measures to the vote
of the people.
SECTION 2. That the ballots to be used at the election shall be in form and
content as required by law.
SECTION 3. That the City Clerk is authorized, instructed, and directed to
coordinate with the County of Los Angeles Registrar-Recorder/County Clerk to
procure and furnish any and all official ballots, notices, printed matter and all
supplies, equipment and paraphernalia that may be necessary in order to
properly and lawfully conduct the election.
SECTION 4. That the polls for the election shall be open at seven o'clock
a.m. on the day of the election and shall remain open continuously from that
time until eight o'clock p.m. of the same day when the polls shall be closed,
pursuant to Elections Code Section 10242, except as provided in Section 14401
of the Elections Code of the State of California.
SECTION 5. That in all particulars not recited in this resolution, the election
shall be held and conducted as provided by law for holding municipal
elections.
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SECTION 6. That notice of the time and place of holding the election is
given and the City Clerk is authorized, instructed, and directed to give further or
additional notice of the election, in time, form and manner as required by law.
SECTION 7. That the City Council authorizes the City Clerk to administer
said election and all reasonable and actual election expenses shall be paid by
the City upon presentation of a properly submitted bill.
SECTION 8. That the City Clerk shall certify to the passage and adoption
of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 14th Day of June 2022.
__________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
__________________________________ __________________________________
Myra Maravilla Michael Jenkins
City Clerk City Attorney
620
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RESOLUTION 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, PROVIDING FOR THE CONDUCT OF A SPECIAL RUNOFF
ELECTION FOR ELECTIVE OFFICES IN THE EVENT OF A TIE VOTE AT THE
GENERAL MUNICIPAL ELECTION TO BE HELD NOVEMBER 8, 2022
WHEREAS, Section 15651(b) of the Elections Code of the State of California
authorizes the City Council, by majority vote, to adopt provisions to require the
conduct of a Special Runoff Election to resolve a tie vote involving those
candidates who received an equal number of votes and the highest number of
votes for an elective office.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. That pursuant to Section 15651(b) of the Elections Code of the
State of California, if any two or more persons receive an equal and the highest
number of votes for an office to be voted for within the City, there shall be held
within the City a Special Runoff Election to resolve the tie vote. A Special Runoff
Election shall be called and held on a Tuesday not less than 40 days nor more
than 125 days after the administrative or judicial certification of the election
which resulted in a tie vote.
SECTION 2. That this Resolution shall apply only to the election to be held
on November 8, 2022 and shall then be repealed.
SECTION 3. That the City Clerk shall certify to the passage and adoption
of this Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED on the 14th day of June 2022.
______________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach
621
Page 2 of 2 22-
ATTEST: APPROVED AS TO FORM:
______________________________ __________________________________
Myra Maravilla Michael Jenkins
City Clerk City Attorney
622
Page 1 of 3 22-
RESOLUTION 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, REQUESTING THE BOARD OF SUPERVISORS OF THE COUNTY
OF LOS ANGELES TO CONSOLIDATE THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON NOVEMBER 8, 2022 WITH THE STATEWIDE GENERAL
ELECTION TO BE HELD IN THE COUNTY OF LOS ANGELES THE SAME DAY;
TO AUTHORIZE THE BOARD OF SUPERVISORS OF THE COUNTY OF LOS
ANGELES TO CANVASS THE RETURNS OF SAID GENERAL MUNICIPAL
ELECTION; AND TO REQUEST THAT THE REGISTRAR-RECORDER/COUNTY
CLERK OF SAID COUNTY BE PERMITTED TO RENDER FULL SERVICES TO THE
CITY OF HERMOSA BEACH RELATING TO THE CONDUCT OF SAID
GENERAL MUNICIPAL ELECTION PURSUANT TO CALIFORNIA ELECTIONS
CODE SECTION 10403
WHEREAS, a General Municipal Election has been called by the City of
Hermosa Beach to be held in the City of Hermosa Beach on November 8, 2022;
and,
WHEREAS, a Statewide General Election to be held in the County of Los
Angeles has been or will be called to be held on November 8, 2022; and,
WHEREAS, it is desired, pursuant to the authority found in California
Elections Code section 10403, to consolidate said General Municipal Election
with said Statewide General Election to be held in the County of Los Angeles;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hermosa Beach as follows:
SECTION 1: The Board of Supervisors of the County of Los Angeles is hereby
respectfully requested to order the consolidation of said General Municipal
Election to be held on November 8, 2022, with the Statewide General Election to
be held in the County of Los Angeles on November 8, 2022.
SECTION 2: The Board of Supervisors of the County of Los Angeles is hereby
further respectfully requested to place upon the same ballot as that provided
623
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for said Statewide General Election to be held in the County of Los Angeles on
November 8, 2022, the names of the candidates for the offices of
Councilmember, Full Term
Councilmember, Full Term
Councilmember, Full Term
to be submitted to the electors of the City of Hermosa Beach at said
General Municipal Election.
SECTION 3: The City of Hermosa Beach acknowledges that the
consolidated election will be held and conducted in the manner prescribed in
Section 10418 of the California Elections Code.
SECTION 4: The Registrar-Recorder/County Clerk of the County of Los
Angele acknowledges that an estimate was given to the City of Hermosa Beach
on the costs of the consolidated election. Should the costs exceed twenty
percent of the estimation, the Registrar-Recorder/County Clerk of the County of
Los Angele will notify the City of Hermosa Beach in writing.
SECTION 5: The Board of Supervisors of the County of Los Angeles is hereby
authorized and respectfully requested to canvass the returns of said General
Municipal Election.
SECTION 6: The Board of Supervisors of the County of Los Angeles is hereby
authorized and respectfully requested to authorize and permit the Registrar-
Recorder/County Clerk of the County of Los Angeles to:
a) Print and supply ballots for said City of Hermosa Beach General
Municipal Election;
b) Mail the City’s sample ballots and candidate statements of
qualifications to the electors of the City of Hermosa Beach as part of the same
material that will be mailed to the voters of the Statewide General Election to be
held in the County of Los Angeles;
c) Perform such other services as may be required for the consolidation
and conduct of said City of Hermosa Beach General Municipal Election with said
Statewide General Election to be held in the County of Los Angeles.
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SECTION 7: The vote centers for the election shall be open as required
during the identified voting period pursuant to California Elections Code sections
4007 and 14401.
SECTION 8: The City shall reimburse the County of Los Angeles in full for the
services performed on behalf of the City upon the presentation of a bill by the
County.
SECTION 9: The City Clerk is hereby directed to deliver a certified copy of
this resolution to the Board of Supervisors of the County of Los Angeles and to
transmit an electronic copy to the Board of Supervisors and the Registrar-
Recorder/County Clerk of the County of Los Angeles.
PASSED, APPROVED and ADOPTED this 14th day of June 2022.
__________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
Myra Maravilla Michael Jenkins
City Clerk City Attorney
625
Page 1 of 3 22-
RESOLUTION 22-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, ADOPTING REGULATIONS FOR CANDIDATES FOR ELECTIVE
OFFICE PERTAINING TO CANDIDATE STATEMENTS TO BE SUBMITTED TO THE
VOTERS AT AN ELECTION TO BE HELD ON TUESDAY, NOVEMBER 8, 2022
WHEREAS, Section 13307 of the Elections Code of the State of California
provides that the governing body of any local agency adopt regulations
pertaining to materials prepared by any candidate for a municipal election,
including costs of the candidates’ statements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,
CALIFORNIA, DOES HEREBY RESOLVE, DECLARE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. GENERAL PROVISIONS. That pursuant to Section 13307 of the
Elections Code of the State of California, each candidate for elective office to
be voted for at an Election to be held in the City of Hermosa Beach on Tuesday,
November 8, 2022, may prepare a candidate’s statement on an appropriate
form provided by the City Clerk. The statement may include the name, age and
occupation of the candidate and a brief description of no more than 200 words
of the candidate’s education and qualifications expressed by the candidate
himself or herself. The statement shall not include the party affiliation of the
candidate, nor membership or activity in partisan political organizations. The
statement shall be filed in typewritten form to the City Clerk at the time the
candidate’s nomination papers are filed. The statement may be withdrawn, but
not changed, during the period for filing nomination papers and until 5:00 p.m.
of the next working day after the close of the nomination period.
SECTION 2. FOREIGN LANGUAGE POLICY.
A. Pursuant to the Federal Voting Rights Act, candidate statements will be
translated into all languages required by the County of Los Angeles. The County
may be required to translate Hermosa Beach candidates’ statements into one
or more of the following languages: Spanish Chinese, Japanese, Korean,
Tagalog, Vietnamese and/or others.
B. The County will print and mail sample ballots and candidate statements
to all voters in English and will mail separate sample ballots and candidate
statements in other qualified languages to only those voters who are on the
County voter file as having requested a sample ballot in a particular language.
The County will make sample ballots and candidate statements in the required
languages available at all vote centers, on the County’s website, and in the City
Clerk’s office.
626
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SECTION 3. PAYMENT.
A. Translations.
1. The candidate shall be required to pay for the cost of translating the
candidate’s statement into any required foreign languages as specified in (A)
and/or (B) of Section 2 above, pursuant to Federal and/or State law.
2. The candidate shall be required to pay for the cost of translating the
candidate’s statement into any foreign language that is not required as
specified in (A) or (B) of Section 2 above, pursuant to Federal and/or State law,
but is requested as an option by the candidate.
B. Printing.
1. The candidate shall be required to pay for the cost of printing the
candidate’s statement in English in the main voter pamphlet.
2. The candidate shall be required to pay for the cost of printing the
candidate’s statement in a foreign language required in (A) of Section 2 above
in the main voter pamphlet.
3. The candidate shall be required to pay for the cost of printing the
candidate’s statement in a foreign language requested by the candidate per
(B) of Section 2 above, in the main voter pamphlet.
4. The candidate shall be required to pay for the cost of printing the
candidate’s statement in a foreign language required by (A) of Section 2 above
in the facsimile voter pamphlet.
The City Clerk shall estimate the total cost of printing, handling, translating,
and mailing the candidates’ statements filed pursuant to this section, including
costs incurred as a result of complying with the Voting Rights Act of 1965 (as
amended), and shall require each candidate filing a statement to pay in
advance to the City his or her estimated pro rata share as a condition of having
his or her statement included in the voter’s pamphlet. The estimate is just an
approximation of the actual cost that varies from one election to another
election and may be significantly more or less than the estimate, depending on
the actual number of candidates filing statements. Accordingly, the City Clerk is
not bound by the estimate and shall, on a pro rata basis, bill the candidates for
additional actual expense or refund any excess paid, depending on the final
actual cost. In the event of underpayment, the City Clerk shall require the
candidate to pay the balance of the cost incurred. In the event of
overpayment, the City Clerk shall prorate the excess amount among the
candidates and refund the excess amount paid within 30 days of the election.
627
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SECTION 4. MISCELLANEOUS.
A. All translations shall be provided by professionally certified translators.
B. The City Clerk shall allow boldface type, underlining, capitalization,
and leading dashes/hyphens in the statement, to the same extent and manner
as allowed in previous City elections. Words/acronyms to be printed in boldface
type, underscored and/or CAPITALIZED must be clearly indicated and shall not
exceed 25 words.
C. The City Clerk shall comply with all recommendations and standards
set forth by the California Secretary of State regarding occupational
designations and other matters relating to elections.
SECTION 5. ADDITIONAL MATERIALS. No candidate will be permitted to
include additional materials in the sample ballot package.
SECTION 6. The City Clerk shall provide to each candidate or the
candidate’s representative a copy of this Resolution at the time the nominating
petitions are issued.
SECTION 7. All previous Resolutions establishing Council policy on
payment for candidates’ statements are repealed.
SECTION 8. The City Clerk shall certify to the passage and adoption of this
Resolution and enter it into the book of original Resolutions.
PASSED, APPROVED and ADOPTED this 14th Day of June 2022.
__________________________________________________________________________
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA
ATTEST: APPROVED AS TO FORM:
__________________________________ __________________________________
Myra Maravilla Michael Jenkins
City Clerk City Attorney
628
November 8, 2022 Election Calendar Page 1 of 3
GENERAL MUNICIPAL ELECTION CALENDAR
NOVEMBER 8, 2022
July 6 (W) Last day to file a Resolution requesting consolidation with Los
Angeles County. (E.C. § 10509)
July 11 (M)
Last day for the City Council to adopt resolution determining or
amending the word limitation for candidate statements. (E.C. §
13307)
July 18 (M) City Clerk deadline to publish notice of election.
July 18 (M) First day for candidates to file nomination papers with the City
Clerk. (E.C. §§§ 10220, 10224 and 10407)
Aug 1 (M) FPPC Campaign Finance – Semi-Annual reports due to the City
Clerk (Form 460 for period ending 6/30/22)
Aug 10 (W) to
Nov 8 (Tu)
FPPC Campaign Finance – 24-Hour/10-Day contribution report due
to the City Clerk (Form 497 for candidates and certain committees
that make or receive contributions that total in the aggregate
$1,000 or more)
Aug 12 (F)
Last day for candidates to file nomination papers with the City
Clerk. (E.C. §§§ 10220, 10224 and 10407)
Deadline for candidates to withdraw.
Aug 12 (F) to
Aug 22 (M)
Public examination period of candidate names, ballot
designations and candidate statements
Aug 13 (Sa) to
Aug 17 (W) Nomination extension period if incumbent does not file
629
November 8, 2022 Election Calendar Page 2 of 3
Aug 17 (W) Deadline for City Clerk to request in writing a specific letter
designation for any ballot measures
Aug 17 (W) Last day for City Clerk to request a specific letter designation in
writing for a measure appearing on the ballot.
Aug 18 (Th) Randomized alphabet drawing by the Secretary of State
(E.C. § 13112)
Aug 18 (Th)
Recommended last day to submit arguments “FOR” or “AGAINST”
any measure to the City Clerk. Arguments are limited to 300 words.
(E.C. §§ 9282 NS 9286)
Aug 19 (F)
Last day for City Clerk to submit qualified candidate names, ballot
designations and residence addresses to Los Angeles County
(E.C. §§ 10402 and 10403)
Aug 22 (M)
Deadline for City Clerk to deliver a copy of each argument,
ordinance text, analysis and any other ballot data/material to Los
Angeles County for inclusion in the Official Sample Ballot Booklet.
Aug 27 (Sa)
Public examination period of candidate names, ballot
designations and candidate statements should the nomination
period be extended due to an incumbent for office not file
Aug 29 (Tu)
Recommended last day for City Clerk to submit rebuttals to the
county elections official for inclusion in the Official Sample Ballot
Booklet.
Sept 29 (Th)
FPPC Campaign Finance – 1st Pre-Election Due – Each candidate
listed on the ballot must file (Form 460 or Form 470 for period of
7/1/22 – 9/24/22)
Oct 18 (Tu)
Los Angeles County to mail Official Sample Ballot Booklets to each
voter. (E.C. § 13303)
NOTE: Historically, LA County has provided Official Sample Ballot
Booklets by E-40 (Sept 29)
Oct 27 (Th) FPPC Campaign Finance – 2nd Pre-Election Due – All committees
must file (Form 460 for period of 9/25/22 – 10/22/22)
630
November 8, 2022 Election Calendar Page 3 of 3
Sept 12 (M) to
Oct 25 (Tu)
Filing period for write-in candidates.
Oct 10 (M) to
Nov 1 (Tu) Vote By Mail – First and last day to apply. (E.C. § 3001)
Oct 24 (Tu) Last day to register to vote in the election. (E.C. §§ 2102 & 2107)
Oct 25 (Tu) to
Nov 8 (Tu) New citizen eligibility to register and vote. (E.C. § 3500)
Oct 29 (Sa) First day Vote Centers open. (E.C. § 4007)
Nov 1 (Tu) Deadline for City Clerk to publish a certified list of nominees.
(E.C. §12110 & G.C. § 6061)
Nov 8 (Tu) Election Day. Vote Centers open 7 a.m. to 8 p.m.
(E.C. §§ 1200 & 14212)
Dec 8 (Th)
The county elections official shall prepare a certified statement of
the results of the election and submit it to each jurisdiction within
30 days of the election. (E.C. § 15372)
NOTE: On December 5, 2022 the Registrar-Recorder/County Clerk
is tentatively scheduled to declare the election officially
concluded.
TENTATIVE
Dec 13 (Tu)
Council to adopt resolution declaring election results.
Elected officials to be sworn in and seated.
Jan 31 (Tu) FPPC Campaign Finance – Semi-Annual reports due to the City
Clerk (Form 460 for period of 10/23/22 – 12/31/22)
631
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0380
Honorable Mayor and Members of the Hermosa Beach City Council
Regular Meeting of June 14, 2022
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 6/9/2022Page 1 of 1
powered by Legistar™632
June 8, 2022
Honorable Mayor and Members Regular Meeting of
of the Hermosa Beach City Council June 14, 2022
TENTATIVE FUTURE AGENDA ITEMS
JUNE 28, 2022 @ 5:00 PM INITIAL
DATE CLOSED SESSION
JUNE 28, 2022 @ 6:00 PM
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
Revenue Report, Expenditure Report and CIP Report by Project for March,
April and May 2022
Finance Director Ongoing
City Treasurer’s Report and Cash Balance Report for March, April and May
2022
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 Parks,
Recreation and Community Resources Advisory Commission meeting of May
3 and June 16, 2022
Community Resources Manager Ongoing
Recommendation to receive and file the action minutes of the Planning
Commission meeting of June 21, 2022
Interim Community Development
Director
Ongoing
Planning Commission Tentative Future Agenda Items Interim Community Development
Director
Ongoing
Recommendation to receive and file the action minutes of the Civil Service
Board meeting of May 18, 2022
Human Resources Manager Ongoing
Assembly Bill 361 Compliance City Clerk Ongoing
MUNICIPAL MATTERS
Leadership Hermosa Beach Class of 2022 Class Project Deputy City Manager/Public Works
Director
Annual
FUTURE AGENDA ITEMS
Tentative Future Agenda Items City Manager Ongoing
633
2
JULY 12, 2022 @ 5:00 PM INITIAL
DATE CLOSED SESSION
JULY 12, 2022 @ 6:00 PM
PRESENTATIONS
SOUTHERN CALIFORNIA EDISON ANNUAL RELIABILITY REPORT
RECOGNIZING NATIONAL PARKS AND RECREATION MONTH
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
Recommendation to receive and file the action minutes of the Civil Service
Board meeting of June 15, 2022
Human Resources Manager Ongoing
Los Angeles Fire Services and McCormick Ambulance Monthly Report for
May 2022
Emergency Management
Coordinator
Ongoing
Assembly Bill 361 Compliance City Clerk Ongoing
Recommendation to receive and file the action minutes of the Parks,
Recreation and Community Resources Advisory Commission meeting of
June 16, 2022
Community Resources Manager Ongoing
PUBLIC HEARINGS – 6:30 PM
Public Hearing on the Annual Levy for the Sewer Charge and Engineers
Report
Public Works Director Annual
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, 2022
Environmental Programs Manager Annual
MUNICIPAL MATTERS
Award of Crossing Guard Contract Police Chief Staff Request
Apr. 6, 2022
Vacancy-Civil Service Board Term Expiration-Report Back and Schedule
Applicant Interviews for July 26, 2022
City Clerk Council Direction
Apr. 26, 2022
FUTURE AGENDA ITEMS – CITY COUNCIL
Future Agenda Items City Manager Ongoing
THURSDAY, JULY 21, 2022 @ 6:00 PM
CITY COUNCIL AND PLANNING COMMISSION HOUSING FORUM
634
3
JULY 26, 2022 @ 4:30 PM
APPLICANT INTERVIEWS FOR CIVIL SERVICE BOARD
JULY 26, 2022 @ 5:00 PM INITIAL
DATE CLOSED SESSION
JULY 26, 2022 @ 6:00 PM
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
Revenue Report, Expenditure Report and CIP Report by Project for June 2022 Finance Director Ongoing
City Treasurer’s Report and Cash Balance Report for June 2022 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 May 18, 2022
Public Works Director Ongoing
Recommendation to receive and file the action minutes of the Planning
Commission meeting of July 19, 2022
Interim Community Development
Director
Ongoing
Planning Commission Tentative Future Agenda Items Interim Community Development
Director
Ongoing
Assembly Bill 361 Compliance City Clerk Ongoing
MUNICIPAL MATTERS
Upcoming Vacancies: Two Public Works Commission Terms Expire October
31, 2022, (Recommendation to advertise with filing deadline of Thursday,
September 22, 2022)
City Clerk 4-year term
FUTURE AGENDA ITEMS
Tentative Future Agenda Items City Manager Ongoing
635
4
THURSDAY, AUGUST 4, 2022 @ 5:00 PM
STUDY SESSION
AUGUST 9, 2022 @ 5:00 PM INITIAL
DATE CLOSED SESSION
AUGUST 9, 2022 @ 6:00 PM
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
Recommendation to receive and file the action minutes of the Civil Service
Board meeting of July 20, 2022
Human Resources Manager Ongoing
Los Angeles Fire Services and McCormick Ambulance Monthly Report for
June 2022
Emergency Management
Coordinator
Ongoing
Assembly Bill 361 Compliance City Clerk Ongoing
Recommendation to receive and file the action minutes of the Parks,
Recreation and Community Resources Advisory Commission meeting of July
5, 2022
Community Resources Manager Ongoing
FUTURE AGENDA ITEMS – CITY COUNCIL
Future Agenda Items City Manager Ongoing
NO MEETING AUGUST 23, 2022
SUMMER BREAK
636
5
PENDING STRATEGIC PLAN ITEMS STATUS /
TENTATIVE MEETING DATE
Update Personnel Policies Human Resources
Manager
Pending Labor
Negotiations/Meet & Confer
Process
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
Community Choice Aggregation Direction, Dec. 2016 Environmental
Programs Manager
PENDING NEW ITEMS STATUS /
TENTATIVE MEETING DATE
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
Landscape and Street Lighting District Assessment Adjustment (mail-in
election authorization)
Initiated by: Council Direction Jul. 9, 2019
Public Works Director To be included in Revenue
Strategy Study Session (March
3, 2022). PW staff has funding
to prepare an assessment
adjustment study and will
advance that effort – it is
anticipated that the study will
take approximately 2 to 3
months to complete. If council
agrees to advance the
adjustment, it will need to go to
a city-wide ballot.
The annual assessment is
required to go to council each
year for approval and may need
to go to council separately
before the ballot vote. It was
last approved at the 7/13/2021
council meeting.
Pavement Condition Index Update
Initiated by: Staff Request Sept. 23, 2019
Public Works Director The new pavement
management plan report is
being prepared and is
anticipated to be completed in
approximately 2 to 3
months. PW staff will prepare
a staff report with the updated
document and have our
consultant available to present
the item to council.
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
Emergency
Management
Coordinator
Waiting for State to review
proposed language changes
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
Initiated by: Council Direction Jan. 28, 2020
Interim Community
Development Director
Staff to work with BCHD to
consider appropriate timing to
return to consider a full ban
Consideration of licensing agreement/fees for use of City logo
Initiated by: Council Direction Jun. 9, 2020
City Attorney The City will develop a
licensing agreement for
commercial uses of the City
logo as part of a comprehensive
637
6
Administrative Memorandum
(AM) on City Branding and
Logo Use by City Staff. City
staff will begin drafting the
AM after finalizing the City’s
style guide and filing its “Intent
to Use” trademark application
for the City logo with the
USPTO. As part of developing
a Licensing Agreement for the
Commercial Use of the City
Logo, staff will establish a
process for reviewing and
handling these requests. This
process will likely include the
negotiation of royalties and as
well as the preparation of a
staff report to obtain Council
approval to enter into the
agreement. Only once after the
City receives the issuance of a
Notice of Allowance from the
USPTO can it begin approving
applications for commercial
uses of the logo.
Follow-up on Mayor’s Pledge
Initiated by: Council Direction August 25, 2020
City Manager’s
Office/Police Chief
Pending proposal from Sunny
Lee
Ordinance to regulate nuisance Outdoor Lighting
Initiated by: Staff Request June 3, 2021
Interim Community
Development Director
Council referred to Planning
Commission at June 2021
meeting, tentatively scheduled
for Planning Commission,
February 2022
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
Initiated by: Staff Request June 12, 2021
City Attorney
Update on single use plastics ordinance and resources needed to meet
compliance (Supported by Massey, Campbell, Armato)
Initiated by: Council Direction October 26, 2021
Environmental Program
Manager
PLAN Hermosa 5-year check-in on milestones
(Supported by Massey, Campbell, Armato, Jackson)
Initiated by: Council Direction October 26, 2021
Interim Community
Development
Director/Environmental
Program Manager
Authorize the SBCCOG to contract for alert and warning services through
Everbridge and Alert South Bay on behalf of the City of Hermosa Beach
Initiated by: Staff Request January 27, 2022
Emergency
Management
Coordinator
Public Hearing to discuss 2023-2024 Residential and Employee Parking
Permits
Initiated by: Council Direction January 31, 2022
City Manager
Update Municipal Code Chapter 1.06 to also include the Hermosa Beach
wordmark in our ordinance
Initiated by: Staff Request February 8, 2022
City Manager/Senior
Management Analyst
Consideration of Non-Profit Grant Program
Initiated by: Council Direction March 9, 2022
Deputy City Manager
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