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HomeMy WebLinkAbout01-24-2023 - Agenda Pkg - CC Regular MeetingTuesday, January 24, 2023 5:00 PM City of Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 City Council Mayor Ray Jackson Mayor Pro Tem Justin Massey Councilmembers Dean Francois Rob Saemann Mike Detoy Regular Meeting Agenda Hybrid virtual/in-person meetings are held pursuant to AB361 Closed Session - 5:00 PM Open Session - 6:00 PM 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 Corrie Kates, Interim 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 January 24, 2023City Council Regular Meeting Agenda PUBLIC MEETING VIEWING OPTIONS The public may participate via the following: 1. IN PERSON - Council Chambers, 1315 Valley Drive, Hermosa Beach, CA 90254 2. ZOOM - https://us02web.zoom.us/j/89968207828? pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT092. 3. PHONE - Toll Free: (833) 548-0276; Meeting ID: 899 6820 7828, then #; Passcode: 472825 As a courtesy, the City will also plan to broadcast the meeting via the following listed mediums. However, these are done as a courtesy only and are not guaranteed to be technically feasible. Thus, in order to guarantee live-time viewing and/or public participation, members of the public shall attend in Council Chambers or log in via ZOOM. 4. CABLE TV - Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach 5. YOUTUBE - https://www.youtube.com/c/CityofHermosaBeach90254 6. LIVE STREAM - www.hermosabeach.gov and visit the Agendas/Minutes/Videos page If you experience technical difficulties while viewing a meeting on any of our digital platforms, please try another viewing option. View City Council staff reports and attachments at www.hermosabeach.gov and visit the Agendas/Minutes/Video page. Council Chambers WiFi Network ID: CHB-Guest Password: chbguest To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) are available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to the Office of the City Clerk at (310) 318-0204 or at cityclerk@hermosabeach.gov at least 48 hours before the meeting. 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 their written communication to the City Clerk’s office by noon, one week before the meeting date. Supplemental communications may be submitted via eComment or emailed to cityclerk@hermosabeach.gov. Supplemental materials must be received by 3:00 p.m. on the date of the meeting to be posted to the corresponding agenda item before the meeting begins. 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 Submit an eComment via Speak Up Hermosa at hermosabeach.granicusideas.com by 3:00 p.m. on the meeting date. Page 2 City of Hermosa Beach Printed on 1/19/2023 2 January 24, 2023City Council Regular Meeting Agenda 5:00 PM - CLOSED SESSION CALL TO ORDER ROLL CALL PUBLIC COMMENT ON THE CLOSED SESSION AGENDA The public is invited to attend and provide public comment. Public comments are limited to 3 minutes per speaker. This Public Comment period is limited to Closed Session agenda items only. 1. IN PERSON - Council Chambers, 1315 Valley Drive, Hermosa Beach, CA 90254 2. ZOOM - https://us02web.zoom.us/j/89968207828? pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 and use 'Raise Hand' feature. 3. PHONE - Toll Free: (833) 548-0276; Meeting ID: 899 6820 7828, then #; Passcode: 472825 Press *9 to 'Raise Hand' and then *6 to unmute yourself line when prompted. 4. EMAIL - Email comments to cityclerk@hermosabeach.gov by 3:00 p.m. on the meeting date. 5. ECOMMENT - Submit an eComment via Speak Up Hermosa at hermosabeach.granicusideas.com by 3:00 p.m. on the meeting date. RECESS TO CLOSED SESSION (Meeting will reconvene in the Council Chambers after Closed Session and recess to Open Session) a)23-0058 MINUTES: Approval of minutes of Closed Session held on January 10, 2023. b)23-0055 CONFERENCE WITH LEGAL COUNSEL: Litigation Update Pending Litigation - Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Cases: CARRILLO, BERNADETTE MARIE, Case Number: 21STCV31855; CRUZ, JONATHAN, Case Number: 22STRCV01015; FARIS, DEBRA, Case Number 22STRCV01015; FRILOT, MICHAEL, Case Number: 20TRCV00045; GERSTBERGER, MARISTELA, Case Number: 22STCV08392; MUZATKO, RACHEL, Case Number: 20TRCV00048; WEBSTER, AMBER LYNN, Case Number: 21STCV26516; and WILHELM, JENNIFER, Case Number: 21STCV28370 Page 3 City of Hermosa Beach Printed on 1/19/2023 3 January 24, 2023City Council Regular Meeting Agenda 6:00 PM - OPEN SESSION I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL IV. CLOSED SESSION REPORT V. ANNOUNCEMENTS - UPCOMING CITY EVENTS VI. APPROVAL OF AGENDA This is the time for the City Council to discuss any changes to the order of agenda items. VII. PROCLAMATIONS / PRESENTATIONS a)23-0052 INTRODUCTION OF POLICE OFFICERS NICOLAS DIENOVA, FABIAN REYES, IVAN REYES, AND RICKY JULIEN b)23-0053 RECOGNIZING RICHARD TAYLOR FOR HIS LIFE SAVING EFFORTS c)23-0054 PROCLAMATION DECLARING FEBRUARY 2023 AS BLACK HISTORY MONTH VIII. CITY MANAGER REPORT a)23-0056 POLICE CHIEF UPDATE Page 4 City of Hermosa Beach Printed on 1/19/2023 4 January 24, 2023City Council Regular Meeting Agenda IX. PUBLIC PARTICIPATION: ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC This is the time for members of the public to address the City Council on any items within the Council's jurisdiction and on items where public comment will not be taken (City Manager Reports, Written Communication, City Councilmember Comments, Consent Calendar items not pulled for separate consideration, and Future Agenda Items). The public is invited to attend and provide public comment. Public comments are limited to three minutes per speaker. This time allotment may be reduced due to time constraints at the discretion of the City Council. 1. IN PERSON - Council Chambers, 1315 Valley Drive, Hermosa Beach, CA 90254 2. ZOOM - https://us02web.zoom.us/j/89968207828? pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 and use 'Raise Hand' feature. 3. PHONE - Toll Free: (833) 548-0276; Meeting ID: 899 6820 7828, then #; Passcode: 472825 Press *9 to 'Raise Hand' and then *6 to unmute yourself line when prompted. 4. EMAIL - Email comments to cityclerk@hermosabeach.gov by 3:00 p.m. on the meeting date. 5. ECOMMENT - Submit an eComment via Speak Up Hermosa at hermosabeach.granicusideas.com by 3:00 p.m. on the meeting date. No action will be taken on matters raised in oral and written communications, except that the Council may take action to schedule issues raised in oral and written communications for a future agenda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. Members of the audience will have a future opportunity to speak on items pulled from the Consent Calendar for separate discussion, Public Hearings, and Municipal Matters when those items are heard. a)23-0060 WRITTEN COMMUNICATION Recommendation:Staff recommends City Council receive and file the written communication. X. CITY COUNCILMEMBER COMMENTS a)23-0059 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES XI. CONSENT CALENDAR The following matters will be acted upon collectively with a single motion and vote to approve with the majority consent of the City Council. Councilmembers may orally register a negative vote on any Consent Calendar item without pulling the item for separate consideration before the vote on the Consent Calendar. There will be no separate discussion of these items unless a Councilmember removes an item from the Consent Calendar, either under Approval of the Agenda or under this item before the vote on the Consent Calendar. Items removed for separate discussion will be considered under Agenda Item XII (12), with public comment permitted at that time. Page 5 City of Hermosa Beach Printed on 1/19/2023 5 January 24, 2023City Council Regular Meeting Agenda a)REPORT 23-0057 CITY COUNCIL MEETING MINUTES (City Clerk Myra Maravilla) Recommendation:Staff recommends City Council approve the minutes for the regular meeting of Tuesday, January 10, 2023. b)REPORT 23-0039 CHECK REGISTERS (Finance Director Viki Copeland) Recommendation:Staff recommends City Council ratify the following check registers. c)REPORT 23-0042 MEMORANDUM REGARDING REVENUE REPORT, EXPENDITURE REPORT, AND CIP REPORT BY PROJECT FOR DECEMBER 2022 (Finance Director Viki Copeland) d)REPORT 23-0036 MEMORANDUM REGARDING CITY TREASURER’S REPORT AND CASH BALANCE REPORT (City Treasurer Karen Nowicki) e)REPORT 23-0044 CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF JANUARY 12, 2023 (Public Works Director Joe SanClemente) Recommendation:Staff recommends City Council receive and file the Capital Improvement Program Status Report as of January 12, 2023. f)REPORT 23-0045 ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF NOVEMBER 16, 2022 (Public Works Director Joe SanClemente) Recommendation:Staff recommends City Council receive and file the action minutes of the Public Works Commission meeting of November 16, 2022. g)REPORT 23-0048 ACTION MINUTES OF THE PLANNING COMMISSION REGULAR MEETING OF JANUARY 17, 2023 (Interim Community Development Director Corrie Kates) Recommendation:Staff recommends City Council receive and file the action minutes of the Planning Commission regular meeting of January 17, 2023. Attachments: 1. Planning Commission Action Minutes Regular Meeting of January 17, 2023 Respectfully Submitted by: Corrie Kates, Interim Community Development Director Approved: Suja Lowenthal, City Manager Page 6 City of Hermosa Beach Printed on 1/19/2023 6 January 24, 2023City Council Regular Meeting Agenda h)REPORT 23-0051 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; and (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. XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M. XIV. MUNICIPAL MATTERS a)REPORT 23-0040 ECONOMIC DEVELOPMENT STRATEGY PROGRESS REPORT (Interim Community Development Director Corrie Kates) Recommendation:Staff recommends City Council: 1. Receive a staff presentation; 2. Provide staff direction regarding first year and possible second year priorities to inform the upcoming Fiscal Year 2022-2023 mid-year budget review and Fiscal Year 2023-2024 budget development process; and 3. Receive and file Economic Development Strategy Progress Report. b)REPORT 23-0049 CONSIDERATION OF FEES AND OTHER CHANGES TO THE TEMPORARY OUTDOOR DINING PROGRAM (Environmental Programs Manager Douglas Krauss) Recommendation:Staff recommends City Council: 1. Consider the encroachment market rent rates from the recent appraisal of local real property; 2. Consider concluding the temporary outdoor dining encroachments on Pier Plaza; and 3. Consider concluding the allowance of roof-top dining areas on private property authorized during the COVID-19 pandemic. XV. FUTURE AGENDA ITEMS This is the time for Councilmembers to schedule future agenda items and to ask questions about the status of previously approved future agenda items. No discussion, debate, or public comment will be taken. Councilmembers should consider the city's work plan when considering new items. The tentative future agenda items document is provided for information only. a)23-0037 TENTATIVE FUTURE AGENDA ITEMS XVI. ADJOURNMENT Page 7 City of Hermosa Beach Printed on 1/19/2023 7 January 24, 2023City Council Regular Meeting Agenda FUTURE MEETINGS AND CITY HOLIDAYS CITY COUNCIL MEETINGS: February 14, 2023 - Tuesday - No Meeting (Dark) February 28, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting March 14, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting March 28, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting April 11, 2023 - Tuesday - No Meeting (Dark) April 20, 2023 - Thursday - 6:00 PM - CIP Study Session April 25, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting May 9, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting May 23, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting May 31, 2023 - Wednesday - 6:00 PM - Budget Study Session June 13, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting June 27, 2023 - Tuesday - No Meeting (Dark) July 11, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting July 20, 2023 - Thursday - 6:00 PM - Joint Meeting with all Boards and Commissions July 25, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 8, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting August 22, 2023 - Tuesday - No Meeting (Dark) September 12, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting September 26, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting September 28, 2023 - Thursday - 6:00 PM - Mayor Transition Ceremony October 10, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting October 24, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting November 14, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting November 28, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting December 12, 2023 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting December 26, 2023 - Tuesday - No Meeting (Dark) Page 8 City of Hermosa Beach Printed on 1/19/2023 8 January 24, 2023City Council Regular Meeting Agenda BOARDS, COMMISSIONS AND COMMITTEE MEETINGS: February 7, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting February 15, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting February 21, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting March 7, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting March 15, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting March 15, 2023 - Wednesday - 6:00 PM - Public Works Commission Meeting March 21, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting April 17, 2023 - Monday - 7:00 PM - Parks and Recreation Advisory Commission Meeting April 18, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting April 19, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting May 2, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting May 16, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting May 17, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting May 17, 2023 - Wednesday - 6:00 PM - Public Works Commission Meeting June 6, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting June 20, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting June 21, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting July 5, 2023 - Wednesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting July 18, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting July 19, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting July 19, 2023 - Wednesday - 6:00 PM - Public Works Commission Meeting August 1, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting August 15, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting August 16, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting September 5, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting September 19, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting September 20, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting September 20, 2023 - Wednesday - 6:00 PM - Public Works Commission Meeting October 3, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting October 17, 2023 - Tuesday - 6:00 PM - Planning Commission Meeting October 18, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting November 7, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting November 13, 2023 - Monday - 6:00 PM - Planning Commission Meeting November 15, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting November 15, 2023 - Wednesday - 6:00 PM - Public Works Commission Meeting December 5, 2023 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting December 11, 2023 - Monday - 6:00 PM - Planning Commission Meeting December 20, 2023 - Wednesday - 5:00 PM - Civil Service Board Meeting CITY OFFICES CLOSED FRIDAY-SUNDAY AND ON THE FOLLOWING DAYS: February 20, 2023 - Monday - President’s Day May 29, 2023 - Monday - Memorial Day June 19, 2023 - Monday - Juneteenth July 4, 2023 - Tuesday - Independence Day September 4, 2023 - Monday - Labor Day November 23, 2023 - Thursday - Thanksgiving Day December 25, 2023 - Monday - Christmas Day January 1, 2024 - Monday - New Year's Day Page 9 City of Hermosa Beach Printed on 1/19/2023 9 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0058 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of January 24, 2023 MINUTES:Approval of minutes of Closed Session held on January 10, 2023. City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™10 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0055 Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of January 24, 2023 CONFERENCE WITH LEGAL COUNSEL: Litigation Update Pending Litigation - Government Code Section 54956.9(d)(1) The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Name of Cases:CARRILLO, BERNADETTE MARIE, Case Number: 21STCV31855; CRUZ, JONATHAN, Case Number: 22STRCV01015; FARIS, DEBRA, Case Number 22STRCV01015; FRILOT, MICHAEL, Case Number: 20TRCV00045; GERSTBERGER, MARISTELA, Case Number: 22STCV08392; MUZATKO, RACHEL, Case Number: 20TRCV00048; WEBSTER, AMBER LYNN, Case Number: 21STCV26516; and WILHELM, JENNIFER, Case Number: 21STCV28370 City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™11 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0052 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 INTRODUCTION OF POLICE OFFICERS NICOLAS DIENOVA, FABIAN REYES, IVAN REYES, AND RICKY JULIEN City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™12 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0053 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 RECOGNIZING RICHARD TAYLOR FOR HIS LIFE SAVING EFFORTS City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™13 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0054 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 PROCLAMATION DECLARING FEBRUARY 2023 AS BLACK HISTORY MONTH City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™14 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0056 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 POLICE CHIEF UPDATE City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™15 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0060 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 WRITTEN COMMUNICATION Recommended Action: Staff recommends City Council receive and file the written communication. Attachments: 1.Written Communication submitted by Anthony Higgins re: Traffic and Noise Concerns City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™16 From:tony higgins To:City Clerk Cc:Douglas Krauss Subject:Written communication for city council, planning commission and public works commission meetings Date:Wednesday, January 11, 2023 5:19:11 PM Attachments:unknown.png January 11, 2023 Dear HB City Council, CC: Planning Commission Public Works Commission Re: Failure to Follow-up or even discuss legitimate resident issues Once again the city has ignored 5 significant issues I’ve raised and I can see you have no intention of rectifying the city manager and council’s blatant attempts to sweep these issues under the carpet. FIRST, you ignored my requests to ask the city manager about ab43 and how it could be used to reduce speed limits to 20mph on residential collector roads. Just today, on Manhattan Ave just north of 29th street a modified exhaust sports car pulled aggressively around two slower moving vehicles that were beginning to slow for a pedestrian in a crosswalk; coming up behind me at a high rate of speed and then jaming on it’s brakes screeching to a halt in the oncoming traffic lane a few feet in front of the pedestrian. I don’t know if it was automatic braking or he saw the pedestrian and her dog, but she looked like a deer in the headlights as the vehicle swerved around the slower traffic and tried to pass them using the oncoming traffic lane. Ab43 affords a chance to possibly do something about this but you refused to even discuss agendizing this. Redondo already has a plan to implement this. https://hermosabeach.legistar.com/View.ashx?M=F&ID=11556931&GUID=E2310FD8- BBEA-4242-AE80-62A8CF05252E SECOND, the council ignored the data I provided on the health consequences of the extreme traffic noise & vibration we are experiencing on 27th during the day from heavy trucks using the street as an arterial truck route and at night from the modified exhaust vehicles every 15 minutes or so. At night this noise is a minimum of 16 times the level that will wake a person from a sound sleep (45dbA vs 85dba). This article on the Health Consequences of ExcessiveTraffic Noise referenced in the URL 17 below is widely cited by academic institutions. The graphs below clearly show the health consequences as a function of noise level, with as little as 40-60 exposures a year having significant health consequences We get 40-60 such events in a couple of weeks on 27th. https://www.euro.who.int/__data/assets/pdf_file/0017/43316/E92845.pdf 18 Then the council ignored my request to enlist BCHD in an independent objective analysis of the health consequences of nighttime traffic noise on vulnerable roadways like 27th that could inform its policies. The city has refused to answer basic questions like: How should the traffic noise data below and the associated health consequences inform city policy.? What thresholds should be set to define a significant impact to resident health and safety caused by traffic noise? What CNEL noise levels or LMAX outside noise events are enough to cause a residential street to be no longer compatible residential use without significant and expensive home modification? 19 When should someone selling a house be required to inform the potential buyer of these health risks? THIRD, the council refused to question city staff on why the recent noise measurements on 27th were taken at points that coverup the true impacts of the noise we experiencing. Specifically, only one noise meter measurement point was selected and it was placed near the base of the eastbound hill at ozone. I previously provided a detailed email on why the measurements should have been taken 2/3rds up the hill at both the east and westbound property lines to properly measure the actual noise impact. The article i cited above also was extremely clear that CNEL noise measurements alone were not adequate to assess health impacts. You must do LAMax measurements and capture data on the number of LAMax events (ie when a modified exhaust vehicle screams by). I also showed that even going back as far as the 2017 General Plan the city has conspired to obfuscate the noise problems on 27th. See map below of where General Plan noise measurements were done and explain why the extremely busy, steep road segment that is being used as an arterial truck route was excluded from the noise and vibration analysis. Why was the 27th street road segment excluded from the General Plan’s noise and vibration measurement. Simple. It was done to cover up a well known problem See yellow oval around 27th. 20 FOURTH, The city has refused to provide any information on the Lane Reduction Initial study and has blamed the 2 year delay on covid. This is simply BS. The reason for the CEQA delay and all of the above is simply that the city thinks it in its best interests to entrench the lane reduction and delay the CEQA process because it knows there are serious potential significant impacts that demand an EIR and it does not want to take steps to mitigate the health consequences Related to this: Related to the CEQA Process for the Pier Avenue Lane Reduction Project, the fair 21 argument standard means that if a “fair argument” can be made that a project may have a significant effect on the environment including health, safety or quality of life, an EIR shall be prepared even though there may be other substantial evidence that the project will not have a significant effect (CEQA Guidelines § 15064(f)(1)). This is exactly the case for the Pier Avenue Lane Reduction Project that has in-part turned 27th street into an Arterial Truck Route. Yet a document ive provided you many times from the City Attorney’s office clearly identifies 27th street as a local collector road saying it is meant to service NW Hermosa’s commercial traffic only and not anarterial truck route to westside businesses FIFTH, the city has refused to explain why in its traffic counts related to the loft promised but never delivered Lane Reduction initial study; it refused to count heavy trucks. There can be no doubt that reducing the pier ave truck route to a single lane coupled with the truck berms placed at Herondo and Hermosa Ave have shifted more and more heavy truck traffic to 27th. Not counting trucks was either incredibly stupid or part of an effort to cover up the true impact of the lane reduction. This was done at a time when the General Plan called for traffic calming and mitigation on 27th that was never implemented. THEN, to make matters worse there was the Strand Pedestrian Safety presentation in last nights council meeting. I do applaud Director SanClemente data collection efforts on the magnitude of the pedestrian safety problem and bicyclist compliance data. Good research. But then the council allowed the city manager to make fools of you. Meaning, why is the city piloting a solution that requires 7x24x365 closure of the strand to bicycle traffic between 10th and 14th street. If strand barricades are implemented then the red lights must be on per Director SanClemente. That should have been a non starter and you allowed the city manager to bamboozle you and push a pilot through that anyone with an ounce of common sense can see will only encourage non-compliance. Basically your plan pilot has fatal cross purposes also known as shooting yourself in the foot. The council should have demanded the barricade pilot be put on hold until a solution to the 7x24 restriction could be found. Anthony Higgins 22 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0059 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™23 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0057 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 CITY COUNCIL MEETING MINUTES (City Clerk Myra Maravilla) Recommended Action: Staff recommends City Council approve the minutes for the regular meeting of Tuesday,January 10, 2023. Attachments: 1.January 10, 2023-Regular Meeting Minutes Respectfully Submitted by: Myra Maravilla, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™24 City Hall 1315 Valley Drive Hermosa Beach, CA 90254 City of Hermosa Beach Meeting Minutes - Draft City Council Mayor Ray Jackson Mayor Pro Tem Justin Massey Councilmembers Dean Francois Rob Saemann Mike Detoy 5:00 PMTuesday, January 10, 2023 Draft 5:00 PM - CLOSED SESSION CALL TO ORDER Mayor Pro Tem Massey called the Closed Session meeting to order at 5:00 p.m. ROLL CALL City Clerk Myra Maravilla announced a quorum. Mayor Jackson, Mayor Pro Tempore Massey, Councilmember Francois, Councilmember Saemann, and Councilmember Detoy Present:5 - Absent:0 PUBLIC COMMENT ON THE CLOSED SESSION AGENDA No public comment was received for items on the Closed Session agenda. RECESS TO CLOSED SESSION The City Council recessed to Closed Session. 23-0028a)MINUTES: Approval of minutes of Closed Session held on November 29 and December 13, 2022. 23-0025b)CONFERENCE WITH LEGAL COUNSEL: Anticipated Litigation - Government Code Section 54956.9(d)(2)&(3) The City finds, based on advice from legal counsel, that discussion in open Page 1City of Hermosa Beach Printed on 1/17/2023 25 January 10, 2023City Council Meeting Minutes - Draft session will prejudice the City in the litigation. Significant exposure to civil litigation* - Two Matters: 1)Delay Claim by EBS General Engineering, Inc. (“EBS”): Pacific Coast Highway Improvements at Aviation Blvd & Pier Ave Project. 2)Additional Compensation Claim by Aid Builders Inc. (“Aid”): Public Park Restroom Project. *Significant exposure to civil litigation means that there exists facts and circumstances where the City may face a lawsuit. This does not mean that any potential lawsuit is meritorious or that there is a significant risk that the City will not prevail in any possible lawsuit. 6:00 PM - OPEN SESSION I. CALL TO ORDER Mayor Pro Tem Massey called the Open Session meeting to order at 6:10 p.m. II. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Jameson Lowrey. III. ROLL CALL City Clerk Myra Maravilla announced a quorum. Mayor Jackson, Mayor Pro Tempore Massey, Councilmember Francois, Councilmember Saemann, and Councilmember Detoy Present:5 - Absent:0 IV. CLOSED SESSION REPORT City Attorney Patrick Donegan provided a Closed Session Report. No reportable action was taken. V. ANNOUNCEMENTS - UPCOMING CITY EVENTS No announcements were made. VI. APPROVAL OF AGENDA A motion was made by Councilmember Detoy, seconded by Councilmember Saemann to approve the order of the agenda. The motion carried by the following vote: VII. PROCLAMATIONS / PRESENTATIONS 23-0015a)RECOGNIZING JUNIOR LIFEGUARDS JACKSON LOWREY AND JAMESON LOWREY FOR THEIR LIFESAVING EFFORTS Page 2City of Hermosa Beach Printed on 1/17/2023 26 January 10, 2023City Council Meeting Minutes - Draft Jessalyn Waldron from Supervisor's Mitchell's office presented certificates to Jackson and Jameson Lowrey. Mayor Pro Tem Massey presented Certificates of Commendation on behalf of the City to Jackson and Jameson Lowrey. Interim Fire Chief Anthony Marrone presented certificates to Jackson and Jameson Lowrey. Members of the Fire Department, the City Council, and dignitaries joined the Lowrey family for a group photo. 23-0018b)ANNOUNCEMENT OF THE WINNER OF THE 13TH ANNUAL PARKING PERMIT ART CONTEST Finance Director Viki Copeland announced the winner of the 13th Annual Parking Permit Art Contest is Rebekie Bennington. Rebekie provided comments. 23-0019c)HERMOSA BEACH CHAMBER OF COMMERCE PRESENTS REVIEW OF 2022 PROGRAMS AND VISION FOR 2023 Chamber President Jessica Accamando presented an overview of the Chamber's activity in 2022 and vision for 2023. Mayor Pro Tem Massey provided remarks. 23-0020d)STRAND PEDESTRIAN SAFETY PRESENTATION Public Works Director Joe SanClemente provided a presentation. Councilmember Saemann provided comments. Councilmember Detoy provided comments. Councilmember Francois provided comments. City Manager Suja Lowenthal provided comments. Mayor Pro Tem Massey provided comments. Page 3City of Hermosa Beach Printed on 1/17/2023 27 January 10, 2023City Council Meeting Minutes - Draft Councilmember Francois provided comments. Mayor Jackson provided comments. VIII. CITY MANAGER REPORT 23-0029a)POLICE CHIEF UPDATE Police Chief LeBaron provided a Police Chief Update IX. PUBLIC PARTICIPATION: ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC In Person Public Comment: Beach Cities Board Member Jane Diehl Liz Ramirez and George Barks presented a Proclamation from Sister City Loreto Baja California Sur, Mexico. Richard Gotthofer Virtual Public Comment: Matt McCool Laura Pena A motion was made by Councilmember Detoy, seconded by Councilmember Saemann to receive and file the written communication. The motion carried by the following vote: Aye:Mayor Jackson, Massey, Francois, Saemann, and Detoy5 - Absent:0 a)23-0030 WRITTEN COMMUNICATION X. CITY COUNCILMEMBER COMMENTS 23-0032a)UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND STANDING COMMITTEE DELEGATES/ALTERNATES Councilmember Francois provided an update on his attendance to the League of California Cities general meeting. Councilmember Saemann provided an update about his attendance to the Sister Cities Association meeting and its programs. Mayor Pro Tem Massey requested staff reach out to a public commenter. Mayor Jackson mentioned interest in a presentation about the beach maintenance plan for the benefit of the public. XI. CONSENT CALENDAR Page 4City of Hermosa Beach Printed on 1/17/2023 28 January 10, 2023City Council Meeting Minutes - Draft Approval of the Consent Calendar A motion was made by Councilmember Detoy, seconded by Councilmember Saemann, to approve the Consent Agenda. The motion carried by the following vote: Aye:Mayor Jackson, Massey, Francois, Saemann, and Detoy5 - Absent:0 23-0033a)WAIVE READING IN FULL OF ALL ORDINANCES ON THE AGENDA (City Clerk Myra Maravilla) A motion was made to approve recommendation on the Consent Calendar. b)REPORT 23-0021 CITY COUNCIL MEETING MINUTES (City Clerk Myra Maravilla) A motion was made to approve recommendation on the Consent Calendar. c)REPORT 23-0013 CHECK REGISTERS (Finance Director Viki Copeland) A motion was made to approve recommendation on the Consent Calendar. d)REPORT 23-0012 CANCELLATION OF CERTAIN CHECKS (City Treasurer Karen Nowicki) A motion was made to approve recommendation on the Consent Calendar. e)REPORT 23-0010 REVENUE REPORT, EXPENDITURE REPORT, AND CIP REPORT BY PROJECT FOR SEPTEMBER, OCTOBER AND NOVEMBER 2022 (Finance Director Viki Copeland) A motion was made to approve recommendation on the Consent Calendar. f)REPORT 23-0011 CITY TREASURER’S REPORT AND CASH BALANCE REPORT (City Treasurer Karen Nowicki) A motion was made to approve recommendation on the Consent Calendar. g)REPORT 23-0001 LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY REPORT FOR NOVEMBER 2022 (Deputy City Manager Angela Crespi) A motion was made to approve recommendation on the Consent Calendar. h)REPORT 23-0006 APPROVAL OF RETURNING IMPACT LEVEL III SPECIAL EVENT (Community Resources Manager Lisa Nichols) Page 5City of Hermosa Beach Printed on 1/17/2023 29 January 10, 2023City Council Meeting Minutes - Draft A motion was made to approve recommendation on the Consent Calendar. i)REPORT 23-0022 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. j)REPORT 23-0003 ACTION MINUTES OF THE CIVIL SERVICE BOARD MEETINGS OF OCTOBER 19, 2022 AND NOVEMBER 16, 2022 (Human Resources Manager Vanessa Godinez) A motion was made to approve recommendation on the Consent Calendar. k)REPORT 23-0004 APPROVAL OF A REQUEST TO RECLASSIFY THE ADMINISTRATIVE ASSISTANT POSITION IN THE PUBLIC WORKS DEPARTMENT TO MANAGEMENT ANALYST (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 There were no items removed from the Consent Calendar for separate discussion. XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M. XIV. MUNICIPAL MATTERS a)REPORT 23-0002 AWARD OF PROFESSIONAL SERVICES AGREEMENTS FOR ON-CALL PLAN CHECKING SERVICES (Public Works Director Joe SanClemente) Public Works Director SanClemente provided a staff report. Councilmember Detoy provided comments. No public comment provided. A motion was made by Councilmember Detoy, seconded by Councilmember Francois to award a contract for on-call plan check services to Transtech Engineers, Inc. at a not-to-exceed amount of $500,000 for a term of five years ending January 10, 2028, with an option to allow the City Manager to extend up to one additional year; and award a contract for on-call plan check services to Bureau Veritas, Inc. at a not-to-exceed amount of $500,000 for a term of five years ending January 10, 2028, with an option to allow the City Manager to extend up to one additional year; and authorize the Mayor to execute and the City Clerk to attest the proposed agreements subject to approval by the City Attorney. Motion Page 6City of Hermosa Beach Printed on 1/17/2023 30 January 10, 2023City Council Meeting Minutes - Draft carried by the following vote: Aye:Mayor Jackson, Massey, Francois, Saemann, and Detoy5 - Absent:0 b)REPORT 23-0008 APPROVAL OF SECOND AMENDMENT TO AN AGREEMENT WITH MILLER PLANNING ASSOCIATES TO PREPARE THE UPDATE TO THE SUBDIVISION ("TITLE 16") AND ZONING ("TITLE 17") ORDINANCES OF THE HERMOSA BEACH MUNICIPAL CODE (Interim Community Development Director Corrie Kates) Senior Planner and Business Liaison Christy Teague provided a staff report. Councilmember Francois provided comments. City Manager Lowenthal and Interim Community Development Director Kates provided information. Virtual Public Comment: Laura Pena Councilmember Saemann provided comments. Councilmember Detoy provided comments. A motion was made by Councilmember Saemann, seconded by Councilmember Detoy to approve the proposed second amendment to an agreement with Miller Planning Associates for the preparation of the update to the Subdivision ("Title 16") and Zoning ("Title 17") Ordinances of the Hermosa Beach Municipal Code increasing the not-to-exceed amount by $30,000 resulting in a total amended not-to exceed amount of $287,100; and authorize the Mayor to execute and the City Clerk to attest the attached second amendment, subject to approval by the City Attorney. The motion carried by the following vote c)REPORT 23-0023 PLANNING COMMISSION-VACANCY FOR THE UNEXPIRED TERM ENDING JUNE 30, 2023 (City Clerk Myra Maravilla) City Clerk Myra Maravilla provided a staff report. Councilmember Detoy provided comments. Councilmember Francois provided comments. A motion was made by Councilmember Detoy,seconded by Councilmember Saemann to direct staff to immediately advertise and request applications from interested parties for one Planning Commission Member for the unexpired term Page 7City of Hermosa Beach Printed on 1/17/2023 31 January 10, 2023City Council Meeting Minutes - Draft ending June 30, 2023; and schedule the presentation of applicants and applicant interviews for Tuesday, February 28, 2023 with the option to make an appointment at the regular City Council meeting on the same date. The motion carried by the following vote: Aye:Mayor Jackson, Massey, Francois, Saemann, and Detoy5 - Absent:0 XV. FUTURE AGENDA ITEMS a)23-0027 TENTATIVE FUTURE AGENDA ITEMS Councilmember Saemann requested an agenda item to discuss adding parking space to CIP 682. Mayor Jackson provided support for an informational item. Mayor Jackson requested an agenda item to discuss the residential parking program. Councilmembers Francois and Councilmember Detoy supported the item. Councilmember Francois requested an action item to discuss the temporary barrier on the Strand. There was no additional support. Councilmember Francois requested an action item to discuss the cost analysis of the blinking lights. There was no additional support. XVI. ADJOURNMENT Mayor Pro Tem Massey adjourned the meeting in memory of Richard McCurdy. Councilmember Saemann delivered a eulogy and asked for a moment of silence in his memory . The meeting adjourned at 9:33 p.m. The next regular City Council meeting is on January 24, 2023. Page 8City of Hermosa Beach Printed on 1/17/2023 32 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0039 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 CHECK REGISTERS (Finance Director Viki Copeland) Recommended Action: Staff recommends City Council ratify the following check registers. Attachments: 1.Check Register 12/28/2022 2.Check Register 1/4/2023 Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™33 12/28/2022 Check Register CITY OF HERMOSA BEACH 1 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101442 12/28/2022 ADVANCED IMAGING OF SO BAY Acct#ZA6J91R INJURY WHILE TAKEN INTO CUSTODY14070 001-2101-4201 35.00 Total : 35.0014070 101443 12/28/2022 AMERICAN UPHOLSTERY INC 11605D MR#938899/FORD C-MAX SEAT&FRAME REPAIR22728 715-3302-4311 990.00 Total : 990.0022728 101444 12/28/2022 AQUA FLO SCM0170516 MAT REQ 938759 INCORRECT ITEM INVOICED09366 001-6101-4309 -49.30 MAT REQ#938759/IRRIGATION SUPPLIESSI2037890 001-6101-4309 437.87 MAT REQ 938759 IRRIGATION SUPPLIESSI2037914 001-6101-4309 18.60 Total : 407.1709366 101445 12/28/2022 BENDER, ROSALIND Parcel 4185 004 012 STREET LIGHT & SEWER TAX REBATE/FY2317706 001-6871 132.93 105-3105 24.61 Total : 157.5417706 101446 12/28/2022 BOWER, JUSTIN Permit#R14378 REFUND - DAMAGE DEPOSIT REFUND22775 001-2111 39.00 Total : 39.0022775 101447 12/28/2022 BURGOS, CARLOS PO 38711 REIMBURSEMENT/SANTA SLEIGH LIGHTS18635 001-2101-4201 74.95 Total : 74.9518635 101448 12/28/2022 CALIFORNIA MARKING DEVICE 7135 MAT REQ 838560 STAMPS FOR RODRIGUEZ00262 001-2101-4201 65.70 MAT REQ 838561 STAMP FOR RODRIGUEZ7149 001-2101-4201 32.85 Total : 98.5500262 101449 12/28/2022 CARPET SPECTRUM, INC.PO 38585 REPLACE FLOOR IN ROOM 1 AT SOUTH PARK08909 001-4202-4201 10,901.00 Total : 10,901.0008909 Attachment 1 34 12/28/2022 Check Register CITY OF HERMOSA BEACH 2 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101450 12/28/2022 CMTA 200004058 BUYERS REMORSE WEBINAR/NOWICKI08533 001-1141-4317 25.00 Total : 25.0008533 101451 12/28/2022 COUNTY OF LOS ANGELES REPW22121202941 TRAFFIC SIGNAL MAINT ARTESIA BLVD/NOV2200879 001-3104-4251 356.49 Total : 356.4900879 101452 12/28/2022 ELITE PRIVATE INVESTIGATION 202222 INVESTIGATION SERVICES/DEC 202222113 001-2101-4201 1,879.58 Total : 1,879.5822113 101453 12/28/2022 ELLIS ENVIRONMENTAL MANAGEMENT 22-410 ASBESTOS TESTING AT CLARK BUILDING19620 301-8689-4201 1,058.50 ASBESTOS TESTING FOR PD/CIP69622-428 301-8696-4201 2,367.40 Total : 3,425.9019620 101454 12/28/2022 FJR PACIFIC, INC.26087 REPAIR OF HEATER/AIR SYSTEM IN THEATER21217 001-4204-4201 736.79 Total : 736.7921217 101455 12/28/2022 FRONTIER 209-188-4669-0714985 LANDLINES/COMPUTER LINKS/DEC2219884 001-3302-4304 103.66 001-2101-4304 749.08 001-4204-4321 247.48 001-4202-4304 68.37 001-3304-4304 62.74 001-1204-4304 66.19 715-1206-4304 1,580.00 PD COMPUTER CIRCUITS/DEC22209-190-0013-1206175 001-2101-4304 913.19 Total : 3,790.7119884 101456 12/28/2022 GRAINGER 9541362787 MAT REQ 938887/MAINTENANCE SUPPLIES10836 715-3104-4311 9.53 MR#938888 RETURNED PRESSURE WASHER9541362803 715-3104-4311 -126.28 MAT REQ 938898/MAINTENANCE SUPPLIES9541790995 715-3104-4311 260.01 35 12/28/2022 Check Register CITY OF HERMOSA BEACH 3 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 143.26 101456 12/28/2022 GRAINGER10836 101457 12/28/2022 JIM & JACKS RO8929 VEHICLE REPAIR/PARKING ENFORCEMENT JEEP22773 715-3302-4311 1,194.22 Total : 1,194.2222773 101458 12/28/2022 JONES, JOHN RILEY 0000013 PARKS MASTER PLAN MGMT SVS THRU 12.22.2222496 301-8538-4201 6,200.00 Total : 6,200.0022496 101459 12/28/2022 LA CO SHERIFFS DEPARTMENT 231347BL MAT REQ 939353/INMATE MEALS/NOV2200151 001-2101-4306 351.38 Total : 351.3800151 101460 12/28/2022 LAURA MECOY COMMUNICATIONS LLC 2194 PUBLIC INFORMATION OFFICER SVS/NOV2220347 001-1201-4201 6,227.03 157-2702-4201 972.97 Total : 7,200.0020347 101461 12/28/2022 LAW OFFICE OF C PATRICK HAMBLI 7549 PERSONNEL LEGAL SVS/NOV2222299 001-1203-4201 173.25 Total : 173.2522299 101462 12/28/2022 LIEBERT CASSIDY WHITMORE 230190 PERSONNEL LEGAL SVS/GENERAL/NOV2202175 001-1203-4201 127.50 PERSONNEL LEGAL SVS/FAULK/NOV22231202 001-1203-4201 2,132.50 Total : 2,260.0002175 101463 12/28/2022 LONG BEACH BMW MOTORCYCLE 45241 TIRES & BRAKES FOR PD MOTORCYCLE12739 715-2101-4311 916.17 715-2101-4311 281.13 Total : 1,197.3012739 101464 12/28/2022 MALONE, TONI Permit#R20028 THEATRE DAMAGE DEPOSIT REFUND21003 001-2111 500.00 Total : 500.0021003 101465 12/28/2022 MARCHESE, SONDRA Permit#R12736 REFUND - THEATRE DAMAGE DEPOSIT15643 001-2111 250.00 36 12/28/2022 Check Register CITY OF HERMOSA BEACH 4 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 250.00 101465 12/28/2022 MARCHESE, SONDRA15643 101466 12/28/2022 MATHESON TRI-GAS, INC.0026867489 MAT REQ 938897 PROPANE TANK REFILL22514 715-3104-4311 160.41 Total : 160.4122514 101467 12/28/2022 ODP BUSINESS SOLUTIONS, LLC 280774254001 MONITOR MOUNT FOR FRONT COUNTER13114 001-4202-4305 147.99 001-4202-4305 14.06 MAT REQ 939176/OFFICE SUPPLIES282773417001 001-4601-4201 37.28 001-4601-4305 46.77 001-4601-4201 3.54 001-4601-4305 4.44 Total : 254.0813114 101468 12/28/2022 PITNEY BOWES INC 3105813487 POSTAGE METER RENTAL/OCT-DEC2213838 715-1208-4201 644.19 Total : 644.1913838 101469 12/28/2022 PITNEY BOWES INC 1022110585 POSTAGE METER SCALE RENTAL/JUL-DEC2213838 715-1208-4201 57.00 Total : 57.0013838 101470 12/28/2022 RACE COMMUNICATIONS RC792812 DEDICATED INTERNET SERVICE/DEC2222179 715-1206-4201 1,020.00 Total : 1,020.0022179 101471 12/28/2022 REDONDO BEACH, CITY OF 576516 CITY PROSECUTOR SERVICES/NOV2203282 001-1132-4201 16,667.00 Total : 16,667.0003282 101472 12/28/2022 RJ PRINTING & PROMOTIONAL 1033 BUSINESS CARDS FOR NEW EMPLOYEE21153 001-2101-4201 50.52 001-2101-4201 20.66 Total : 71.1821153 101473 12/28/2022 ROCKLER WOODWORKING & HARDWARE 10228752 MAT REQ 938533 MAINTENANCE SUPPLIES22669 001-3104-4309 120.96 37 12/28/2022 Check Register CITY OF HERMOSA BEACH 5 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 120.96 101473 12/28/2022 ROCKLER WOODWORKING & HARDWARE22669 101474 12/28/2022 RONSMAINTENANCE INC 607 STORM DRAIN CATCH BASIN MAINT/OCT2222483 161-3109-4201 3,605.00 Total : 3,605.0022483 101475 12/28/2022 RYDER, LISA R PO 37556 GREEN BUSINESS PROGRAM/OCT-DEC2216970 001-1201-4201 2,600.00 Total : 2,600.0016970 101476 12/28/2022 SOUTH BAY FIRE, INC.191217 ANNUAL FIRE EXTINGUISHER CERTIFICATIONS00113 001-4204-4201 3,169.00 001-4204-4201 61.28 Total : 3,230.2800113 101477 12/28/2022 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/NOV2200159 105-2601-4303 104.10 Total : 104.1000159 101478 12/28/2022 STAFFORD HR CONSULTING, LLC 06-007 HR CONSULTANT SVS/OCT-DEC2222586 001-1203-4201 1,162.50 Total : 1,162.5022586 101479 12/28/2022 STANLEY CONVERGENT SECURITY 6002982944 SERVICE TRIP CHARGE/SURVEILLANCE SYSTEM16806 001-2101-4201 285.00 Total : 285.0016806 101480 12/28/2022 STRAIGHTLINE BACKFLOW, INC.00558236 BACKFLOW TESTING-CIP669 RESTROOM PROJECT21304 301-8669-4201 260.00 Total : 260.0021304 101481 12/28/2022 TRANSTECH ENGINEERS, INC 20222222-20222231 WIRELESS PLAN CHECKS/OCT2215901 001-4202-4201 4,490.50 WIRELESS PLAN CHECKS/NOV2220222638-20222650 001-4202-4201 7,410.00 Total : 11,900.5015901 101482 12/28/2022 TURBODATA SYSTEMS, INC.39128 DATAMAX TICKET PRINTER20670 001-3302-4309 250.00 001-3302-4309 23.75 38 12/28/2022 Check Register CITY OF HERMOSA BEACH 6 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 273.75 101482 12/28/2022 TURBODATA SYSTEMS, INC.20670 101483 12/28/2022 UPS 000023R146522 MAT REQ 939352/SHIPPING SERVICES14148 001-2101-4305 18.54 Total : 18.5414148 101484 12/28/2022 US ARMOR 39854 BULLETPROOF VEST FOR ROCHA09374 001-2101-4350 709.90 001-2101-4350 102.27 BULLETPROOF VEST FOR TORRES39877 001-2101-4350 709.90 001-2101-4350 102.27 Total : 1,624.3409374 101485 12/28/2022 VCA COAST ANIMAL HOSPITAL 5790602740 VET CARE K9 CHARLIE/VACCINES09672 170-2105-4201 96.84 Total : 96.8409672 101486 12/28/2022 VERIZON BUSINESS SERVICES 72431443 VOIP PHONES/EOC/NOV2218666 001-1201-4304 42.60 VOIP PHONES/COMM RES/NOV2272433271 001-4601-4304 103.91 VOIP PHONES/YARD/NOV2272433492 001-4202-4304 106.58 Total : 253.0918666 101487 12/28/2022 VERIZON WIRELESS 9923096706 PD TRUNK MODEMS/DEC2203209 153-2106-4201 1,000.51 Total : 1,000.5103209 101488 12/28/2022 WILLDAN FINANCIAL SERVICES 010-53395 DISTRICT ADMIN FEES/OCT-DEC2215188 139-1219-4201 357.52 135-1219-4201 388.87 Total : 746.3915188 101489 12/28/2022 ZUMAR INDUSTRIES INC 98456 MAT REQ 854424/STREET SIGN MAINTENANCE01206 001-3104-4309 918.25 MAT REQ 854425/STREET SIGN MAINTENANCE98457 001-3104-4309 918.29 39 12/28/2022 Check Register CITY OF HERMOSA BEACH 7 3:28:30PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 1,836.54 101489 12/28/2022 ZUMAR INDUSTRIES INC01206 234015 12/22/2022 PITNEY BOWES INC Check run 12.28.22 POSTAGE METER REFILL/DEC2213838 001-1208-4305 1,000.00 Total : 1,000.0013838 257201 12/21/2022 SOCAL GAS 115 404 6900 1 CITY-OWNED BLDGS/NATURAL GAS/NOV2200170 001-4204-4303 201.94 Total : 201.9400170 573401 12/23/2022 SOCAL GAS 097 904 5900 3 CITY-OWNED BLDGS/NATURAL GAS/NOV2200170 001-4204-4303 121.59 Total : 121.5900170 573432 12/23/2022 SOCAL GAS 102 104 5900 3 CITY-OWNED BLDGS/NATURAL GAS/NOV2200170 001-4204-4303 86.80 Total : 86.8000170 573686 12/23/2022 SOCAL GAS 139 104 4600 7 CITY-OWNED BLDGS/NATURAL GAS/NOV2200170 001-4204-4303 15.29 Total : 15.2900170 573707 12/23/2022 SOCAL GAS 141 204 4600 1 CITY-OWNED BLDGS/NATURAL GAS/NOV2200170 001-4204-4303 23.02 Total : 23.0200170 Bank total : 91,827.93 54 Vouchers for bank code :boa 91,827.93Total vouchers :Vouchers in this report 54 40 12/28/2022 Check Register CITY OF HERMOSA BEACH 8 3:28:30PM 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 8 inclusive, of the check register for 12/28/2022 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 12/28/22 41 01/04/2023 Check Register CITY OF HERMOSA BEACH 1 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101490 1/4/2023 AFRE, LAURENS Permit#47353 REFUND FOR MONTHLY PARKING PERMIT22768 001-3821 31.00 Total : 31.0022768 101491 1/4/2023 ALL CITY MANAGEMENT 81017 CROSSING GUARD SVS/10.16-10.29.2206827 146-2102-4201 14,459.09 CROSSING GUARD SVS/11.27-12.10.2282070 146-2102-4201 14,655.90 Total : 29,114.9906827 101492 1/4/2023 AMERICAN ARBOR CARE 65257 ARBORIST CONSULT/REPORT 11.18.2220197 001-6101-4201 250.00 ARBORIST CONSULT/REPORT 12.20.2265438 001-6101-4201 250.00 Total : 500.0020197 101493 1/4/2023 AQUA FLO SI2041893 MAT REQ 938410 IRRIGATION SUPPLIES09366 001-6101-4309 984.97 Total : 984.9709366 101494 1/4/2023 AT&T 000019216195 PD COMPUTER CIRCUITS/DEC2200321 001-2101-4304 139.98 7428 - PING WARRANT FOR DR#22-2243441387 001-2101-4304 175.00 Total : 314.9800321 101495 1/4/2023 AXON ENTERPRISES, INC.INUS120474 AXON TASER ANNUAL MAINTENANCE21022 715-2101-4201 19,200.00 715-2101-4201 1,824.00 Total : 21,024.0021022 101496 1/4/2023 BADGE FRAME, INC.40201 CAREER PRESENTATION FRAME-CAMPBELL22776 001-2101-4201 270.00 001-2101-4201 20.93 CAREER PRESENTATION FRAME-ARMATO40202 001-2101-4201 285.00 001-2101-4201 22.09 CAREER PRESENTATION FRAME-JENKINS40350 Attachment 2 42 01/04/2023 Check Register CITY OF HERMOSA BEACH 2 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101496 1/4/2023 (Continued)BADGE FRAME, INC.22776 001-2101-4201 1,283.00 001-2101-4201 99.43 Total : 1,980.4522776 101497 1/4/2023 BURGOS, CARLOS PO 38762 REIMBURSEMENT FOR SANTA COSTUME18635 001-2101-4201 120.00 001-2101-4201 12.00 Total : 132.0018635 101498 1/4/2023 CA PEACE OFFICERS ASSOCIATION 362680 PD DEPARTMENT MEMBERSHIP 202300261 001-2101-4315 1,150.00 Total : 1,150.0000261 101499 1/4/2023 CA PEACE OFFICERS ASSOCIATION 367810 PROFESSIONAL MEMBERSHIP DUES 202300261 001-2101-4315 200.00 Total : 200.0000261 101500 1/4/2023 CAHALAN, ERIC PO 38763 MEALS DURING SUPERVISORY DETECTIVE CLASS13157 001-2101-4312 75.00 Total : 75.0013157 101501 1/4/2023 CALBO 15829 BUILDING & CODE ENFORCEMENT JOB POST01037 001-1203-4201 30.00 Total : 30.0001037 101502 1/4/2023 CALIFORNIA CHAPTER FBI-NAA 50197 FBIAA ANNUAL MEMBERSHIP DUES10833 001-2101-4315 130.00 Total : 130.0010833 101503 1/4/2023 CALIFORNIA CONTRACT CITIES 3512 ANNUAL MEMBERSHIP DUES FY2319166 001-1101-4315 3,000.00 Total : 3,000.0019166 101504 1/4/2023 CANON SOLUTIONS AMERICA, INC 163189739 BALANCE DUE-8 COPIERS & FOLDING MACHINE10838 715-4101-5405 6,494.00 715-2101-5405 13,125.00 715-1208-5405 5,855.75 715-2101-5405 2,012.61 715-1201-5405 2,012.61 43 01/04/2023 Check Register CITY OF HERMOSA BEACH 3 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101504 1/4/2023 (Continued)CANON SOLUTIONS AMERICA, INC10838 715-4601-5405 2,012.61 715-4202-5405 2,012.61 715-3302-5405 1,521.07 715-1208-5405 3,834.44 715-4101-5405 616.93 715-2101-5405 1,406.10 715-1208-5405 920.57 715-1201-5405 159.24 715-4601-5405 159.24 715-4202-5405 159.24 715-3302-5405 144.50 Total : 42,446.5210838 101505 1/4/2023 CATELLA, JOSEPHINE PO 38786 CASH KEY DEPOSIT & BALANCE REFUND22782 001-3851 17.00 001-2117 16.50 Total : 33.5022782 101506 1/4/2023 CLAUDIO, ENRIQUE PO 38714 PSO UNIFORM REIMBURSEMENT22771 001-2101-4314 141.01 Total : 141.0122771 101507 1/4/2023 D'AGOSTINO, GIANCARLO PO 38787 CONTRACTOR PERMIT OVERAGE REFUND22770 001-3850 84.00 Total : 84.0022770 101508 1/4/2023 FRANCOIS, DEAN PO 38789 REIMB - AGENDA PACKET PRINTING 12.13.2222778 001-1101-4305 86.49 001-1101-4305 8.22 Total : 94.7122778 101509 1/4/2023 FRONTIER 310-372-6186-0831895 2ND FL CITY HALL FAX LINE/DEC2219884 001-1121-4304 14.00 001-1141-4304 14.00 001-1201-4304 14.00 001-1202-4304 14.00 001-1121-4304 -2.81 001-1141-4304 -2.81 44 01/04/2023 Check Register CITY OF HERMOSA BEACH 4 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101509 1/4/2023 (Continued)FRONTIER19884 001-1201-4304 -2.81 001-1202-4304 -2.81 001-1203-4304 11.18 EOC LANDLINES/DEC22310-379-0652-1216195 001-1201-4304 67.83 Total : 123.7719884 101510 1/4/2023 HARRIS, KATHRYN Citation 44013552 CITATION DUPLICATE PAYMENT22785 001-3302 78.00 Total : 78.0022785 101511 1/4/2023 KEYSTONE UNIFORM DEPOT 069173 ACADEMY UNIFORMS FOR AGUIRRE20359 001-2101-4201 1,275.76 001-2101-4201 126.67 ACADEMY UNIFORMS FOR FLORES069174 001-2101-4201 1,250.76 001-2101-4201 138.70 Total : 2,791.8920359 101512 1/4/2023 KG INTEL 17900 ACTIVE SHOOTER TRAINING WITH HBUSD22757 001-2101-4317 8,000.00 Total : 8,000.0022757 101513 1/4/2023 LA SUPERIOR COURT - TORRANCE PO 38771 CITATION PYMT SURCHARGES NOV2200118 001-3302 45,782.50 Total : 45,782.5000118 101514 1/4/2023 LEARNED LUMBER Acct 1126 MAINTENANCE SUPPLIES DEC2200167 001-3104-4309 95.40 001-4204-4309 166.00 001-3104-4309 9.06 001-4204-4309 15.77 Total : 286.2300167 101515 1/4/2023 LEO WEB PROTECT INC 3784 INTERNET PRIVACY SVS FOR MGMT STAFF/FY2322111 001-2101-4201 3,999.96 Total : 3,999.9622111 101516 1/4/2023 LIEBERT CASSIDY WHITMORE 229199 PERSONNEL LEGAL SVS/FAULK/OCT2202175 45 01/04/2023 Check Register CITY OF HERMOSA BEACH 5 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101516 1/4/2023 (Continued)LIEBERT CASSIDY WHITMORE02175 001-1203-4201 1,020.00 Total : 1,020.0002175 101517 1/4/2023 MARKS, LAURA LEE PO 38803 PHOTOGRAPHY SVS FOR COUNCIL AND STAFF20782 001-1101-4201 1,470.00 Total : 1,470.0020782 101518 1/4/2023 MUNOZ, JORGE Citation#34026567 REFUND CITATION OVER PAYMENT22781 001-3302 28.00 Total : 28.0022781 101519 1/4/2023 O'BRIEN BENDER, JEANNE 6-2022 CITY RECORD ORGANIZATION/DEC2222673 001-1121-4201 3,400.00 Total : 3,400.0022673 101520 1/4/2023 ODP BUSINESS SOLUTIONS, LLC 279758893001 MAT REQ 838563/OFFICE SUPPLIES13114 001-2101-4305 98.59 MAT REQ 838565/OFFICE SUPPLIES283357230001 001-2101-4305 51.17 MAT REQ 791092/OFFICE SUPPLIES283849397001 001-1202-4305 41.05 MAT REQ 791092/OFFICE SUPPLIES283866816001 001-1204-4305 72.24 MAT REQ 791092/OFFICE SUPPLIES283866817001 001-1121-4305 16.41 MAT REQ 791092/OFFICE SUPPLIES283866818001 001-1202-4305 17.51 MAT REQ 791093/OFFICE SUPPLIES283883025001 001-1202-4305 13.80 001-1208-4305 49.84 001-1202-4305 1.31 001-1208-4305 4.74 Total : 366.6613114 101521 1/4/2023 PARADISE AWARDS 30247 30 PLAQUES FOR COUNCIL PRESENTATIONS08878 001-1101-4305 3,000.00 001-1101-4305 285.00 Total : 3,285.0008878 46 01/04/2023 Check Register CITY OF HERMOSA BEACH 6 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101522 1/4/2023 PARKS COFFEE CALIFORNIA, INC.70108891 PD COFFEE SERVICE/DEC2222071 001-2101-4305 70.20 001-2101-4306 70.19 Total : 140.3922071 101523 1/4/2023 POELSTRA, GERRITT "JOE"PO 38634 REIMB/EQUIPMENT FOR RECRUITS15701 001-2101-4314 283.04 Total : 283.0415701 101524 1/4/2023 REGIONAL TAP SERVICE CENTER 6018068 BUS PASS SALES/NOV2220061 145-3403-4251 20.00 001-1204-4251 3.50 Total : 23.5020061 101525 1/4/2023 ROBERT HALF TALENT SOLUTIONS 60808825 TEMP ADMIN ASSIST WEEK ENDING 9.23.2222419 001-2101-4102 705.60 CREDIT-ADMIN ASSIST WEEK ENDING 9.23.2260843643 001-2101-4102 -201.60 Total :504.0022419 101526 1/4/2023 SBCU VISA 940662 CC 2022 HOLIDAY PARTY03353 001-1203-4305 4,000.00 2022 HOLIDAY PARTY941075 CC 001-1203-4305 2,200.00 CITY COUNCIL TRANSITION RECEPTION992121 CC 001-1101-4319 3,706.54 001-1101-4319 293.46 Total : 10,200.0003353 101527 1/4/2023 SCOTT ROBINSON CHRYSLER 42445 MAT REQ 938657 VEHICLE REPAIR PARTS18220 715-3302-4311 331.41 MAT REQ 938656 VEHICLE REPAIR PARTS42453 715-3302-4311 331.41 Total : 662.8218220 101528 1/4/2023 SPCALA 2022-11 ANIMAL SHELTERING SERVICES/NOV2218821 001-3302-4201 661.00 Total : 661.0018821 101529 1/4/2023 SPECTRUM BUSINESS 8448 30 030 0352413 1301 HERMOSA/540 PIER CONNECTION/DEC2220236 47 01/04/2023 Check Register CITY OF HERMOSA BEACH 7 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101529 1/4/2023 (Continued)SPECTRUM BUSINESS20236 001-2101-4304 279.41 Total : 279.4120236 101530 1/4/2023 SPECTRUM BUSINESS 8448 30 030 0049969 PD CABLE/DEC2220236 001-2101-4201 81.93 Total : 81.9320236 101531 1/4/2023 STAPLES.COM 10061639 PAPER FOR EVIDENCE PRINTERS20382 001-2101-4305 189.98 001-2101-4305 18.05 Total : 208.0320382 101532 1/4/2023 STERICYCLE 3006288212 MEDICAL WASTE DISPOSAL/JAN2310412 001-2101-4201 78.75 Total : 78.7510412 101533 1/4/2023 T-MOBILE 9516716012 GPS LOCATION SERVICES FOR PD19082 001-2101-4304 100.00 Total : 100.0019082 101534 1/4/2023 VERIZON BUSINESS SERVICES 72433621 VOIP PHONES/CITY HALL & PD/NOV2218666 001-1101-4304 18.07 001-1121-4304 46.00 001-1132-4304 13.31 001-1141-4304 26.62 001-1201-4304 123.21 001-1202-4304 63.99 001-1203-4304 53.27 001-1204-4304 79.85 001-1208-4304 6.00 001-2101-4304 399.63 001-4101-4304 79.90 001-4201-4304 97.93 001-4202-4304 159.84 001-4204-4321 13.34 160-3102-4201 13.32 715-1206-4304 13.35 Total : 1,207.6318666 48 01/04/2023 Check Register CITY OF HERMOSA BEACH 8 4:55:58PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 101535 1/4/2023 VERIZON BUSINESS SERVICES 72431439 VOIP PHONES/BASE 3/NOV2218666 001-3302-4304 80.91 Total : 80.9118666 101536 1/4/2023 VERIZON BUSINESS SERVICES 72433606 VOIP PHONES/BARD/NOV2218666 001-3304-4304 50.61 Total : 50.6118666 780932 1/4/2023 ADMINSURE AS AGENT FOR THE Wire date 1.4.23A WORKERS COMP CLAIMS 12.12-12.15.2214691 705-1217-4324 12,903.65 WORKERS COMP CLAIMS 12.19-12.23.22Wire date 1.4.23B 705-1217-4324 20,146.29 Total : 33,049.9414691 989656 12/28/2022 EXXON MOBIL BUSINESS FLEET 85726697 VEHICLE FUEL 11/10/22-12/9/2210668 715-3302-4310 1,458.34 715-4202-4310 199.57 715-2101-4310 5,753.42 715-4204-4310 722.43 715-4206-4310 132.65 715-6101-4310 207.60 715-3104-4310 555.93 Total : 9,029.9410668 Bank total : 228,741.04 49 Vouchers for bank code :boa 228,741.04Total vouchers :Vouchers in this report 49 49 01/04/2023 Check Register CITY OF HERMOSA BEACH 9 4:55:58PM 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 1/4/2023 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 1/4/23 50 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0042 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 MEMORANDUM REGARDING REVENUE REPORT, EXPENDITURE REPORT, AND CIP REPORT BY PROJECT FOR DECEMBER 2022 (Finance Director Viki Copeland) The December 2022 Revenue,Expenditure,and CIP reports will be submitted with the Midyear Budget Review, which is scheduled for the February 28, 2023 City Council meeting. Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™51 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0036 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 MEMORANDUM REGARDING CITY TREASURER’S REPORT AND CASH BALANCE REPORT (City Treasurer Karen Nowicki) The December 2022 City Treasurer’s Report and Cash Balance Report will be submitted with the Midyear Budget Review, which is scheduled for the February 28, 2023 City Council meeting. Respectfully Submitted by: Karen Nowicki, City Treasurer Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™52 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0044 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF JANUARY 12, 2023 (Public Works Director Joe SanClemente) Recommended Action: Staff recommends City Council receive and file the Capital Improvement Program Status Report as of January 12, 2023. Number of Projects/Studies by Phase # of Projects/Studies Study/Conceptual Planning 13 Preliminary Design 10 Final Engineering Design 16 Project Approvals/ Bidding 8 Construction 3 Closeout 0 Total Projects 40 Total Studies 10 Number of Projects/Studies by Completion Timeline # of Projects/Studies 1 - Complete by end of FY 22-23 12 2 - Complete in FY 23-24 26 3 - 3 years to completion 2 4 - 5 years to completion 0 5 - TBD 10 Projects/Studies Complete 0 Total Projects 40 Total Studies 10 City of Hermosa Beach Printed on 1/19/2023Page 1 of 2 powered by Legistar™53 Staff Report REPORT 23-0044 Number of Projects/Studies by Category # of Projects/Studies Street & Highway Improvements 14 Sewer & Storm Drain Improvements 6 Park Improvements 4 Public Building & Ground Improvements 26 Total Projects 40 Total Studies 10 # of Projects/Studies Number of Projects/Studies by Manager Lead Support Total Lucho Rodriguez 3 4 7 Andrew Nguyen 9 2 11 Michelle Licata 6 1 7 Jonathan Pascual 6 0 6 Jasmine Lopez 2 7 9 George Hernandez 5 2 7 German Alvarez 1 2 3 Magvern By 0 1 1 Doug Krauss 5 0 5 Lisa Nichols 1 0 1 TBD 12 Total Projects/Studies 50 Attachments: Capital Improvement Program Status Report as of January 12, 2023. Respectfully Submitted by: Joe SanClemente, Public Works Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 2 of 2 powered by Legistar™54 City of Hermosa Beach Updated 1-12-23 UPDATED FY 2022-23 CAPITAL IMPROVEMENT PROGRAM Grey indicates projects on hold. Light Blue indicates projects milestone updates. Project CategoryADA ComponentCIP No.Project Name Project Budget Project Manager Study/Conceptual PlanningPreliminary DesignFinal Engineering DesignProject Approvals/BiddingConstructionCloseoutTentative Date to Next Milestone/ Update Estimated Project Completion Date Current Project Status Project Description SH X 102 Bus Stops Improvements 1,150,000$ Andrew Nguyen Jasmine Lopez X Complete Final Engineering Design - 12/23 06/24 Final Engineering Design. Combined with CIP 193. Spin off project for RRFBs installation at several crosswalks ahead of full design. This project will improve bus stops throughout the City. These improvements will include Americans with Disabilities Act (ADA) accessible curb ramps, concrete bus pads, crosswalk, striping improvements, furnishing, and other general improvements within direct vicinity of the bus stops. SH 108 Pay-By-App Parking Signage 75,000$ Michelle Licata X Complete Final Engineering Design - 4/23 06/23 Final Engineering Design.The implementation of a pay by app system will require the installation of signs that will provide instructions for users and zone numbers necessary to use the system. The industry recommendation is that at least two signs be installed per block. At this time, most vendors providing pay by app systems will provide the signs at no additional cost to the City but require City staff to install them and any additional poles. It is estimated that the City will need approximately 375 signs installed, and 30 new poles installed in some locations due to a lack of existing poles. The installation would occur in areas of the City where paid parking is currently provided. SH 109 Utility Box Wrappings (NEW)50,000$ TBD X TBD 06/24 Study/Conceptual Planning. Pending staff availability.This project will add art wrappings around utility boxes around the City. The City has several utility boxes located throughout the city. Many can be wrapped with decorative art. Some of the boxes are City owned while others are owned by third party. Permission from third party owners will be required to wrap those boxes. SH X 143 PCH Mobility Improvement Project 75,000$ Lucho Rodriguez X Complete Study/Conceptual Planning - 6/23 TBD Study/Conceptual Planning. Metro Approved funding of $1.8 million for the City for the project development phases - PA&ED (Project Approval and Environmental Document) as a result of Public Work's Measure M application in 2020. Metro has retained the services of their on-call specialists to assist with the first phase. Preliminary data gathering. Pending execution of Metro-Caltrans agreement. The City has identified a number of complete street project elements that can be implemented to improve mobility, accessibility, and safety along the Pacific Coast Highway (PCH) corridor in Hermosa Beach. These elements are described in the Project Study Report prepared by the City and Caltrans in 2015 and include: Traffic Signal Synchronization, Landscape Medians, Americans with Disabilities Act (ADA) Improvements/Removal of Utility Impediments, Transit Access Enhancements, Pedestrian Enhancements, and Aesthetic Enhancements. Collectively, the improvements will address existing, near-term, and long-range future traffic conditions along this corridor by improving intersection operations, reducing instances of unsafe turning movements, create a safe and more comfortable environment for pedestrians and transit riders, and improving the efficient movement of vehicles along the corridor. Improvements will include ADA components to be determined during design. SH 164 Hermosa Avenue Green Street 159,500$ Doug Krauss Michelle Licata X Complete Final Engineering Design - 6/23 TBD Final Engineering Design. Preparation of plans and specifications by specialist (CWE) through grant managed by City of Torrance. Will be applying for additional grant funds from Measure W. This project will design and implement Low Impact Development (LID) and green infrastructure on Hermosa Avenue from 4th Street to Herondo Avenue, which will include a variety of green street design elements. This project is also part of a multicity green street project lead by the City of Torrance. SH X 188 Strand Bikeway and Walkway Improvements at 35th Street 300,000$ TBD X TBD TBD Study/Conceptual Planning. Pending staff availability.This project would provide improved accessibility and connectivity for bicyclists traveling between the Cities of Hermosa Beach and Manhattan Beach via The Strand at 35th Street. The project will also consider the addition of a dedicated ADA path to provide greater ADA accessibility to The Strand. SH X 191 Annual Street Improvements 1,700,000$ Lucho Rodriguez Magvern By X Complete Final Engineering Design - 4/23 12/23 Final Engineering Design. Preparing plans.This project provides for pavement rehabilitation of streets at various locations. The project will also repair/replace deteriorated portions of sidewalk, curb and gutter, and curb ramps. This work will be performed following the sewer and storm drain repairs identified in the Sewer and Drainage Master Plans. Improvements will include ADA components to be determined during design. SH 193 Pedestrian Crossing Safety Improvements 500,000$ Andrew Nguyen Jasmine Lopez X Complete Final Engineering Design - 12/23 06/24 Final Engineering Design. Combined with CIP 101. Spin off project for RRFBs installation at several crosswalks ahead of full design. This project will implement rectangular rapid flashing beacons and other measures at several uncontrolled pedestrian crossings on Hermosa Avenue at 4th, 6th, 19th, 24th, 25th Streets and the crossing in front of Clark Building on Valley Drive. SH X 194 Annual Striping Improvements 250,000$ German Alvarez X Complete Final Engineering Design - 4/23 08/23 Final Engineering Design. Preparing plans.This project provides traffic striping, markings, and signage improvements and modifications throughout the City at various locations to improve safety and visibility. This project will help address thermoplastic striping needed which the City is not capable of installing directly. Improvements will include ADA components to be determined during design. SH X 195 City Sidewalk Improvements 150,000$ Michelle Licata German Alveraz X Complete Project Approvals/Bidding - 2/23 06/23 Project Approvals/Bidding. Preparing to bid project in January. Project includes CIP 760.This project provides repairs, replacements, and improvements to sidewalks throughout the City at various locations to maintain and improve safety. Improvements will include ADA components by increasing sidewalk accessibility to be determined during design. SSD 417 Annual Storm Drain Improvements - Various Locations 1,999,267$ George Hernandez X Complete Final Engineering Design - 6/23 12/24 Final Engineering Design. On-call design firm finalizing plans and specifications. Applying for Coastal Commission permit. This project includes storm drain improvements throughout the City. Locations will be as identified and prioritized per the Storm Drain Master Plan. Projects will address deficiencies, ponding, and repairs as well as where new storm drains are needed Citywide. This project will also address operational deficiencies at the outfall structures at 18th Street and 19th Street. Improvements include for design and construction activities on an annual basis. SSD 421 Annual Sewer Improvements 2,500,000$ Andrew Nguyen Jasmine Lopez X Complete Final Engineering Design - 4/23 10/23 Final Engineering Design for Phase 2 to be finalized.This project includes design and construction of sewer improvements and repairs based on the Sewer Master Plan. Categories: SH = Street/Highway SSD = Sewer/Storm Drain PI = Parks PBG = Public Building and Ground 1 of 4 55 City of Hermosa Beach Updated 1-12-23 UPDATED FY 2022-23 CAPITAL IMPROVEMENT PROGRAM Grey indicates projects on hold. Light Blue indicates projects milestone updates. Project CategoryADA ComponentCIP No.Project Name Project Budget Project Manager Study/Conceptual PlanningPreliminary DesignFinal Engineering DesignProject Approvals/BiddingConstructionCloseoutTentative Date to Next Milestone/ Update Estimated Project Completion Date Current Project Status Project Description SSD 422 Annual Storm Drain Improvements 499,716$ George Hernandez X Complete Project Approvals/Bidding - 3/23 09/23 Project Approvals/Bidding. This project includes storm drain improvements throughout the City. Locations will be as identified and prioritized per the Storm Drain Master Plan. Projects will address deficiencies, ponding, and repairs as well as where new storm drains are needed Citywide. SSD 423 Annual Sewer Improvements 250,000$ Andrew Nguyen X Complete Preliminary Design - 6/23 06/24 Preliminary Design.This project includes design and construction of sewer improvements and repairs based on the Sewer Master Plan. SSD 424 Annual Storm Drain Improvements 250,000$ George Hernandez X Complete Preliminary Design - 6/23 TBD Preliminary Design.Storm drain improvements throughout the City. Locations will be as identified and prioritized per the Storm Drain Master Plan. Projects will address deficiencies, ponding, and repairs as well as where new storm drains are needed citywide. This project will also address operational deficiencies at the outfall structures at various locations. Improvements include for design and construction activities on an annual basis. PI X 502 Greenbelt Pedestrian Trail (NEW)550,000$ Andrew Nguyen Jasmine Lopez X Complete Final Engineering Design - 6/23 11/23 Preliminary Design. RFP for design services was advertised and contract for selected design specialist has been awarded by City Council. Design firm preparing plans and specifications. This project will remove woodchips and construct an accessible pedestrian trail composed of decomposed granite on the Greenbelt from Pier Avenue to 8th Street. PI X 549 Temporary Beach Accessible Routes 30,904$ Andrew Nguyen Jasmine Lopez X Complete Construction - 4/23 06/23 Construction. Roll out mats have been deployed. Received approved permit from Costal Commission. Concrete pads for roll out mats constructed. This project is to continue the City's temporary beach access routes pilot program. Access routes will be established on the beach at 2nd Street, 11th Street, and 22nd Street. ADA improvements are integral to the project. PBG X 601 Prospect Avenue Curb Ramps 113,710$ Jonathan Pascual X Complete Project Approvals/Bidding - 2/23 06/23 Project Approvals/Bidding. Readvertising bidding in January. Previous bids were rejected. Bidding with CIP 698. This project provides improvements and relocation of sidewalks, curb ramps and obstructions along Prospect Avenue in order to comply with the Americans with Disabilities Act (ADA) and meet the latest Federal Standards. Project to be bided out together with Project 698. ADA improvements are integral to the project. PBG 603 South Park Slope and Irrigation Repairs 1,700,000$ Jonathan Pascual Lucho Rodriguez X Complete Final Engineering Design - 4/23 12/23 Final Engineering Design. Finalizing irrigation and landscaping plans and specifications. Staff completing grant application for State award for $190K of supplemental funding. This project will address sloped areas around the playground area at South Park. Funding would be utilized to install interim measures in order to open up the area to the public while the City pursues more permanent measures for repairs required of the entire park, including irrigation and landscaping. PBG X 604 City Wide ADA Improvements (NEW)200,000$ TBD X TBD TBD Preliminary Design. Pending staff availability.This project provides improvements city wide in order to comply with the American with Disabilities Act (ADA) and meet the latest Federal Standards along with the City's Transition Plan being developed. ADA improvements are integral to the project. PBG 609 Downtown Strategic Plan Implementation 350,000$ Andrew Nguyen Jasmine Lopez X Complete Final Engineering Design - 6/23 12/24 Final Engineering Design. Preparing plans and specifications for Pier Plaza catenary lights and light dimming units. The purpose of this project is to mitigate safety concerns with lighting improvements for the City’s downtown area. This project will install catenary lights and dimming units on Pier Plaza. PBG 615 New Corporate Yard Facilities 500,000$ Doug Krauss Lucho Rodriguez X TBD TBD Preliminary Design. Pending staff availability. Prepare RFP for design services.This project is for the design and construction of a new City Yard. The current City Yard is in need of reconstruction. A new City Yard will provide a safe and functional area for City maintenance crew and staging. PBG 616 Bard Trailer Improvements 150,000$ George Hernandez X Complete Final Engineering Design - 2/23 06/23 Final Engineering Design. Finalizing plans and specifications.This project will provide improvements to the trailer on Bard Street at City Hall for use by staff and the City. PBG 617 Civic Center Charging Stations (NEW)100,000$ Doug Krauss X Complete Final Enginering Design - 4/23 11/23 Final Engineering Design. This project will explore the electrical power needs and installation of expanded electric vehicle charging infrastructure to serve the Police Department fleet on Bard Street, adjacent the Police Department and City Hall. The expanded charging would include up to 10 new chargers including both Level 2 and Level 3 chargers. PBG 618 Tsunami Siren (NEW)4,700$ TBD X TBD 02/23 Preliminary Design. Awaiting funds from FEMA and Cal OES.This grant-funded project will include working with the Emergency Management Coordinator, Los Angeles County Beach and Harbor to install an outdoor warning siren at the Community Center and possible other locations and integrate the selected siren and the Beach Emergency Evacuation Lighting System (BEELS) systems into the City's alert and warning software platform Alert South Bay. PBG 619 Pickleball Court Resurfacing (NEW)150,000$ Jasmine Lopez Andrew Nguyen X Complete Preliminary Design - 2/23 12/23 Preliminary Design. On-call specialist preparing conceptual designs.This project will resurface and reconfigure the City's Pickleball courts at Clark Field. The courts will be restriped and reconfigured to meet Pickleball court standards. Other improvements may be made to improve the courts as well. PBG 620 City Wide Roof Repair (NEW)240,000$ TBD X TBD 09/23 Preliminary Design. Pending staff availability.This project will repair and replace roofs at several City facilities including City Yard, Lawn Bowling, and Lot C Parking Structure. PBG 629 Municipal Pier Structural Assessment and Repairs 1,250,000$ Michelle Licata X Complete Project Approvals/Bidding - 2/23 06/23 Project approval/bidding. Construction contract to be awarded in Feburary by Council with CIP 660. Repairs of the municipal pier structural elements including the piles, pile caps, deck and the lifeguard storage room. Categories: SH = Street/Highway SSD = Sewer/Storm Drain PI = Parks PBG = Public Building and Ground 2 of 4 56 City of Hermosa Beach Updated 1-12-23 UPDATED FY 2022-23 CAPITAL IMPROVEMENT PROGRAM Grey indicates projects on hold. Light Blue indicates projects milestone updates. Project CategoryADA ComponentCIP No.Project Name Project Budget Project Manager Study/Conceptual PlanningPreliminary DesignFinal Engineering DesignProject Approvals/BiddingConstructionCloseoutTentative Date to Next Milestone/ Update Estimated Project Completion Date Current Project Status Project Description PBG 660 Municipal Pier Electrical Repairs 700,000$ Michelle Licata X Complete Project Approvals/Bidding - 2/23 06/23 Project approval/bidding. Construction contract to be awarded in Feburary by Council with CIP 629. The pier electrical repairs will involve the replacement of existing conduit, junction boxes, connections and wiring so that the lights can be functional. The project will also eliminate the service box towards the end of the pier and create a new service connection point for the foghorn at the end of the pier. This project will also include the replacement of the bollard lighting at the pier with new LED lighting fixtures. PBG X 669 City Park Restrooms and Renovation 81,726$ Jonathan Pascual Lucho Rodriguez X Complete Construction - TBD TBD Construction. Contractor has been terminated. City working with surety to complete project.This project consists of construction of new ADA compliant restrooms at Forts Lots-of-Fun, Seaview Parkette, South Park, and Clark Field. This project also plans to renovate existing restrooms at South Park and Clark Field. ADA improvements are integral to the project. PBG X 682 Parking Lot D Improvements 1,200,000$ Doug Krauss X Complete Project Approvals/Bidding - TBD TBD Project Approvals/Bidding. Coastal Conservancy Board grant awarded in April 2021. Measure W Grant Funds awarded May 2022. Staff is developing the bid package for advertisement. The project will install a rapid electric vehicle charging station, expand bicycle parking and capture and treat storm water run- off from road and parking surfaces. Project will include new ADA ramp to the parking lot and new ADA parking spots. Estimated cost of ADA improvements is $15,000 PBG 684 Emergency Operations Center (EOC) Renovations 200,000$ TBD X TBD 02/24 Preliminary Design. Pending staff availability.This project will add restrooms to the EOC and renovate the adjacent room for future EOC uses. The EOC is located within a building designated as a historical building, which will require a Certificate of Appropriateness to complete the repairs. This project will be completed in two phases. Phase 1 includes restroom construction including flooring, lighting, wall and ceiling repairs, painting, new plumbing, and installing fixtures. Phase 2 includes complete room renovation including new flooring, ceiling, lighting, furnishings, and relocation of Emergency System IT equipment, including a new switch, 2 UPC batteries, and firewall to support the EOC. Security Improvements to include new key fob locking systems. PBG X 689 Clark Building Renovations 1,094,460$ Jonathan Pascual Lucho Rodriguez X Complete Final Engineering Design - 4/23 10/23 Final Engineering Design. On-call design firm finalizing plans and specifications.The project proposes: 1. Design, Operational Review 2. Kitchen Remodel - including new commercial appliances, sinks, countertops, lighting, tile, flooring, doors and ADA upgrades. 3. Restrooms Remodel - including new flooring, fixtures, stalls, sinks, toilets, lighting, and ADA upgrades. Electrical, plumbing, sewer line upgrades. 4. Install new Heating, ventilation, and air conditioning. 5. Acoustic panels and new lighting throughout ballroom area. 6. ADA upgrades to entrance building entrance points. ADA improvements are integral to the project. PBG X 692 14th Street Beach Restroom Rehabilitation 329,811$ George Hernandez X Complete Study/Conceptual Planning - 2/23 06/24 Study/Conceptual Planning. Reviewing structural assessment report on existing restroom structure. This project proposes to construct a new restroom facility which includes replacement of the entire building; restrooms; appurtenant plumbing; ADA improvements for compliance. This project will also include the replacement of the existing sewer lift station components which includes 2 submersible pumps; motor control panel; associated plumbing; addition of telemetry for condition/outage notifications. New restrooms will be ADA compliant. PBG X 695 Parking Lot A Improvements 100,000$ TBD X TBD TBD Preliminary Design. Pending staff availability.This project will consist of upgrading Parking Lot A to meet ADA standards, with improvements including: • New layout to maximize parking capacity and improve circulation. • Consideration of the layout of parking spaces on 11th Street and explore incorporating 11th Street parking spaces into the Lot A pay station system. • New surfacing and lighting. • New trash enclosures adjacent to commercial buildings and removal of the trash enclosure and joint compactor. • Low impact development elements including permeable pavers and landscaping. Coastal Commission permits will be required. Improvements will include ADA components to be determined during design. PBG 696 Police Station Improvements 300,000$ Jasmine Lopez Andrew Nguyen X Complete Final Engineering Design - 4/23 08/23 Final Engineering Design. On-call specialist preparing plans and specifications.This project will include increased security measures and improvements to report writing room, evidence room, and property room. Police staff has determined there is a need for renovations to the department office for a new layout. PBG X 698 ADA improvements 71,298$ Jonathan Pascual X Complete Project Approvals/Bidding - 2/23 06/23 Project Approvals/Bidding. Readvertising bidding in January. Previous bids were rejected. Bidding with CIP 601. The project proposes: Improvements and relocation of sidewalks, curb ramps and obstructions along Prospect Avenue in order to follow the Americans with Disabilities Act (ADA) and meet the latest Federal Standards. Project to be bided out together with Project 601. ADA improvements are integral to the project. PBG X 699 Parking Structure (Lot C) Improvements 1,500,000$ Jonathan Pascual X Complete Final Engineering Design - 4/23 12/23 Final Engineering Design. On-call specialist finalizing plans and specifications.This project provides repairs and improvements to the City's parking structure (Lot C) based on the assessment report from Study 694 Parking Structure (Lot C) Structural Assessment including structural, elevator, and electrical repairs. Improvements will include ADA components to be determined during design. Categories: SH = Street/Highway SSD = Sewer/Storm Drain PI = Parks PBG = Public Building and Ground 3 of 4 57 City of Hermosa Beach Updated 1-12-23 UPDATED FY 2022-23 CAPITAL IMPROVEMENT PROGRAM Grey indicates projects on hold. Light Blue indicates projects milestone updates. Project CategoryADA ComponentCIP No.Project Name Project Budget Project Manager Study/Conceptual PlanningPreliminary DesignFinal Engineering DesignProject Approvals/BiddingConstructionCloseoutTentative Date to Next Milestone/ Update Estimated Project Completion Date Current Project Status Project Description SH X 101 Hermosa Avenue Greenwich Village Street Realignment (STUDY) 10,000$ TBD X TBD TBD Study/Conceptual Planning. Pending staff availability.This study will evaluate potential improvements at the intersections of Hermosa Avenue and Greenwich Village and Manhattan Avenue and Greenwich Village/27th Street. The study will evaluate opportunities to improve the flow and visibility for pedestrian, bikes, and vehicles at the two intersections. Study will also evaluate potential ADA improvements. SH 110 Strand Bollards Assessment (STUDY) (NEW)250,000$ TBD X TBD 04/24 Study/Conceptual Planning. Pending staff availability.This study will assess the feasibility, permitting, and design of bollards along the Strand to improve safety and security. SH 111 Gateway and Wayfinding Signs Assessment (STUDY) (NEW)80,000$ Andrew Nguyen Jasmine Lopez X Complete Study/Conceptual Planning - 6/23 12/23 Study/Conceptual Planning. On-call specialist preparing study/conceptual plans.This study to evaluate gateway and wayfinding signage throughout the City. Recommendations will include locations, sign content, and refined cost estimates for final design and construction. SSD 438 Stormwater Dry Wells Assessment (STUDY) (NEW)100,000$ Doug Krauss X TBD 01/24 Study/Conceptual Planning.As required by the region’s Enhanced Watershed Management Plan, this study will assess the implementation of a series of drywells east of PCH between 1st St and 10th St to capture stormwater and dry weather flows within 118 acres of the Herondo Drain (SMB-6-1) watershed. PI 503 City Park Lighting Assessment (STUDY) (NEW)120,000$ TBD X TBD 06/23 Study/Conceptual Planning. Pending staff availability.This study will assess light levels and lighting improvements to the City's parks. South Park, Clark Field, and Valley Park. The study will identify scope of required improvements and cost estimates for final design and construction. PI 538 Citywide Park Master Plan (STUDY) 650,000$ Lisa Nichols X 06/24 06/24 Study/Conceptual Planning. Contract for Project Management Services for Development of the Parks Master Plan to Catalyst Consulting was awarded July 12, 2022. Preparing master plan. The City is seeking to prepare a Parks Master Plan that achieves the following goals: • Engages the community and local recreational organizations in a dialogue about parks and open space resources in Hermosa Beach; • Identifies the current demand/utilization and the future/evolving parks and recreational facility needs for the Hermosa Beach community; • Leverages the vision and goals of the recently adopted General Plan and the Community Decision-Making Tool; • Identifies an appropriate balance between organized and informal recreational activities at the City’s parks and open spaces; • Serves as a dynamic useful planning and implementation document that enjoys broad community and political support; • Provides a comprehensive strategy to maintain, rehabilitate and improve the City’s network of parks, facilities, and open space assets, including current unfunded park and recreational opportunities; • Evaluates the effective use of the City’s financial and physical resources and opportunities to fund implementation of the recommendations in the Master Plan. PBG 605 City Facilities Condition and Needs Assessment (STUDY) 500,000$ TBD X TBD 08/23 Study/Conceptual Planning. Pending staff availability.Prepare condition assessment reports for City facilities throughout the City to understand the infrastructure improvement needs. PBG 621 Comprehensive Downtown Lighting Assessment (STUDY) (NEW)150,000$ Andrew Nguyen X TBD 12/23 Pending staff availability.This study is to assess light levels, electric system requirements, and desired lighting improvements (i.e., ornamental, roadway, pedestrian scale) for the City's Downtown district. The study will identify scope of required improvements and cost estimates for final design and construction. PBG 622 Emergency Power Assessment (STUDY) (NEW)116,450$ TBD X TBD 10/23 Study/Conceptual Planning.This grant-funded study will conduct a power needs assessment of critical city infrastructure that would be utilized during a disaster/emergency such as shelter locations, the emergency operations center among others and provide recommendations to ensure critical power needs are addressed. PBG 623 Pier Structural Inspection and Evaluation (STUDY) (NEW)300,000$ Michelle Licata X TBD 06/24 To be coordinated with structural repairs (CIP 629).This study will be performed after completion of CIP 629 Municipal Pier Structural Assessment and Repairs. Inspection of the pier will be performed to assess and evaluate structural condition of the pier and provide recommendations for additional repairs needed. SH 160 PCH Traffic Improvements (RECONCILIATION) 300,000$ Lucho Rodriguez X Complete Construction - 4/23 06/23 City working with contractor and Caltrans to finalize project.The purpose of this project is to improve operational mobility along State Route 1 (Pacific Coast Highway) which also provides operational relief to I-405 by improving operations in a parallel route. The proposed project also includes improvements including but not restricted to truck turning radius, ADA curb ramps, striping and pedestrian signal improvements of the segment on PCH between Anita Street and Artesia Boulevard. Pedestrian signal, crosswalks and ADA curb ramps improvements at the intersections of PCH and Pier Avenue and PCH and Aviation Boulevard including improvements at intersection to aid trucks turning onto Aviation. PBG 760 Tree Well Grates (RECONCILIATION) 51,068$ Michelle Licata German Alveraz X Complete Project Approvals/Bidding - 2/23 06/23 Project Approvals/Bidding. Preparing to bid project in January. Project includes CIP 195.This project will install iron tree grates in existing tree wells on Hermosa Ave. Categories: SH = Street/Highway SSD = Sewer/Storm Drain PI = Parks PBG = Public Building and Ground 4 of 4 58 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0045 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF NOVEMBER 16, 2022 (Public Works Director Joe SanClemente) Recommended Action: Staff recommends City Council receive and file the action minutes of the Public Works Commission meeting of November 16, 2022. Attachments: Action Minutes of the November 16, 2022 Public Works Commission Meeting Respectfully Submitted by: Joe SanClemente, Public Works Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™59 City of Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Action Minutes Wednesday, November 16, 2022 6:00 PM Hybrid in-person/virtual meetings are held pursuant to AB361. Public Works Commission Vice Chairperson Kathy Dunbabin Commissioners Janice Brittain Scott Hayes David Grethen Thor Legvold Public Works Director Joe SanClemente City Engineer Lucho Rodriguez Associate Engineer Andrew Nguyen City Attorney’s Office John Natalizio 60 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 2 Viewing Options for Public Meetings Public Works Commission meetings are hybrid in-person/virtual. Public meetings are broadcast live on Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach. Additional viewing options are provided as a courtesy. IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach JOIN THE VIRTUAL MEETING VIA ZOOM AT: https://us02web.zoom.us/j/87407083024?pwd=eVJHMWFHR0tTNGJMbDRzeUVxeHQ0dz09 OR PARTICIPATE BY PHONE: • Toll Free: 877-853-5257 • Meeting ID: 874 0708 3024 • Passcode: 472153 ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED. If you are joining by phone, press * 9 to raise your virtual and *6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker. YOUTUBE CHANNEL: https://www.youtube.com/c/CityofHermosaBeach90254 CITY WEBSITE: www.hermosabeach.gov and visit the Agendas/Minutes/Videos page ***PLEASE NOTE: IF YOU EXPERIENCE TECHNICAL DIFFICULTIES WHILE VIEWING THE MEETING ON ONE OF THESE PLATFORMS, PLEASE TRY ONE OF THE OTHER VIEWING OPTIONS.*** All Public Works Commission meetings are open to the public. Please attend. Currently, meetings are being held in-person and virtually. The Public Works Commission receives a packet with detailed information for every agenda item. Public Works Commission agenda packets are available for review on the City’s website located at https://www.hermosabeach.gov/our-community/agendas-minutes-video. During the meeting, a packet is also available in the Council Chambers foyer, or you can access the packet at our website, https://www.hermosabeach.gov/our-community/agendas-minutes- video, on your laptop, tablet, or smartphone through the wireless signal available in the Council Chambers – Network ID: CHB-Guest, Password: chbguest To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) will be available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to Andrew Nguyen at (310)318- 0222 or anguyen@hermosabeach.gov at least 48 hours prior to the meeting. 61 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 3 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 Public Works Department by email (anguyen@hermosabeach.gov) or in person by noon of the Wednesday one week before the meeting date. Written materials pertaining to matters listed on the posted agenda received after the agenda has been posted will be added as supplemental materials under the relevant agenda item on the City’s website at the same time as they are distributed to the Public Works Commission by email. Supplemental materials may be emailed to anguyen@hermosabeach.gov. Supplemental materials must be received before 3:00 p.m. on the date of the meeting to ensure Commission and staff have the ability to review materials prior to the meeting. Supplemental materials submitted after 3:00 p.m. on the date of the meeting or submitted during the meeting will be posted online the next day. Submit Supplemental eComments in three easy steps: Note: Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information (i.e., phone numbers, address, etc.) that you do not want to be published. 1. Go the Agenda/Minutes/Video webpage and find the meeting for which you would like to submit comments. 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 as a guest and enter your name and comment in the field provided. 62 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 4 I. CALL TO ORDER II. PLEDGE OF ALLEGIANCE III. ROLL CALL Present: Vice Chairperson Dunbabin, Commissioner Brittain, Commissioner Hayes, Commissioner Grethen, Commissioner Thor Legvold Staff Present: Joe SanClemente, Director of Public Works; Lucho Rodriguez, City Engineer; Andrew Nguyen, Associate Engineer; John Natalizio, City Attorney’s Office IV. APPROVAL OF AGENDA This is the time for the Public Works Commission to discuss any changes to the order of agenda items. ACTION: Vice Chairperson Dunbabin proposed changes to the agenda to move Item XIII-a Removal and Replacement of Tree to Item XII-a. Move Item XI-c to Item XII-a. Move Item XI-d to Item XI-c. Commissioner Grethen motion to approve the proposed changes. Seconded by Commissioner Brittain. The motion passed 5-0. V. ANNOUNCEMENTS a. Hermosa for the Holidays b. World Cup Watch Event VI. PRESENTATIONS a. Hermosa Avenue Green Streets Project Update – Douglas Krauss, Environmental Programs Manager Environmental Programs Manager Douglas Krauss provided an update about the Hermosa Avenue Green Streets Project Update. The design is almost done and have applied for a safe clean water funding for a regional project to fund the construction. The application has been submitted and sent to the clean water scoring committee and making revisions. b. Climate Adaptation Report – Douglas Krauss, Environmental Programs Manager Environmental Programs Manager Douglas Krauss provided a report about the climate adaption being done on 35th St, 26th St and the south end of town. Grant funded product to analyze the entire coastal area of Hermosa Beach but specifically in three locations, 35th St, 26th St, Greenwich Village and then the south end of town at Herondo. Provided design concepts that address the mobility concerns and safety but also adapts them to climate change, such as sea level rises and flooding. Final report draft has been going back-and-forth with 63 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 5 a consultant and almost complete with a final report. Two concepts being presented per location. c. The Strand Pedestrian Safety – Joe SanClemente, Public Works Director Public Works Director Joe SanClemente provided a presentation about pedestrian safety on the Strand regarding e-bikes and other motorized vehicles. Currently there is signage that state to dismount as well as red flashers that indicate when to dismount. Proposed elements would be to have waterfilled barriers on 11th and 14th St, become a walk only zone 24/7, and enhanced signage of “NO MOTORIZED VEHICLES OR ELETRIC DEVICES”. VII. PUBLIC WORKS DIRECTOR REPORT a. Verbal Update Director Joe SanClemente provided an update. Reclassified Lucho Rodriguez as City Engineer, promoted Michelle Licata from Assistant Engineer to Associate Engineer, promoted Rene Rodriguez to Maintenance Worker II, new Public Works Inspector Meah Stafford, Juan Hodges Maintenance Worker I, and actively recruiting for two senior engineer positions, one associate engineer, and one engineering technician. Accessibility Beach Mat Project will have to periodically remove the mats and regrade the sand and pour concrete pads at the beginning of the mats. b. Monthly Activity Reports No questions and comments. c. CIP Status Update City Engineer presented the CIP Status update. • CIP PCH 143: Project will include the entire length of PCH within the City and partnered with Metro. • CIP 629 Municipal Pier Structure Assessment and Repair: Municipal and electrical repairs. Pier will be temporary closed and will be in construction early next year. • CIP 417 Annual Storm Drain Improvements: Work will be conducted not during summer and will be in relation when the permit is obtained. • CIP Pedestrian Crossing Safety Improvements: Received design request for proposals from several designers to do the design of the larger project which includes six locations on Hermosa Ave as well as on Valley and Pier Ave. 64 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 6 • CIP 102 Bus Stop Improvements: Curb ramp upgrades and accessibility as well as rethinking on where the bus stops should be. VIII. PUBLIC PARTICIPATION – ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC: This is the time for members of the public to address the Commission on any items within the Commission’s jurisdiction not on this agenda and items on this agenda as to which additional public comment will not be taken (Announcements, Public Works Director Report, Consent Calendar Items not pulled for separate consideration, and Future Agenda Items). Public Hearings Items are heard only during the public hearing. Members of the audience may additionally speak during discussion of items removed from the Consent Calendar and during Matters for Commission Consideration. All comments are limited to three minutes per speaker but may be reduced due to time constraints. No action will be taken on matters raised in oral and written communications, except that the Commission may take action to schedule issues raised in oral and written communications for a future agenda. Speakers with comments regarding City management of departmental operations are encouraged to submit those comments directly to the City Manager. • Written communications were received by Anthony Higgins and Howard Longacre • Resident Tony Kinsella wanted to bring attention regarding The Strand pedestrian safety about the diversion in the alleyway as people already divert down that alleyway even with gates there are enough openings where people do currently use that diversion. • Resident Laura Pena wanted to highlight on Pier Ave (Bard and Pier), vehicle did not see her crossing the street. Ensure that Pier Ave should have more lights at night. IX. COMMISSIONER COMMENTS: Commissioners may briefly respond to public comments, may ask a question for clarification, or make a brief announcement or report on his or her own liaison or subcommittee roles, activities, or meetings attended. None. X. CONSENT CALENDAR a. Action Minutes of the Public Works Commission Meeting of September 21, 2022 ACTION: Commissioner Grethen moved to approve the minutes seconded by Commissioner Brittain. Commissioner Legvold abstained due to not being at the meeting. Motion passed 4-0. XI. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION None. XII. PUBLIC HEARINGS None 65 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 7 XIII. MATTERS FOR COMMISION CONSIDERATOIN a. Request to Remove and Replace Three Trees from the Public Right-of-Way on Valley Drive Fronting the City Yard and Adjacent City Property Associate Engineer Michelle Licata provides a presentation recommending the removal and replacement of the trees. Commission asked questions and answers were provided by staff. Public comments were provided by: Joan Dambros Patricia Kelly Moonan Karen Bruns Toni Consolo Tom Donnelly Charlene Wong Unnamed resident Kathy Chairperson Dunbabin closed Public Comments. Commission deliberated and asked further questions in regards to tree roots, birds, safety concerns of the damaged sidewalk due to the tree, ADA compliance of the sidewalk and liability, trimming/pruning of roots may cause a liability of the trees collapsing, contacting the South Bay Parkland Conservancy, City Attorney’s Office John Natalizio added that the decision for tree removal is to be based on if the tree is dead, if the tree is a public nuisance which is staff suggestion, and/or if the tree significantly interferes the with the use and enjoyment of adjacent properties. Commissioner Grethen stated that he supports the removal of the northern tree but not the other 2 trees which may be looked at again as part of another project. Commissioner Brittain moved to approve the removal of 3 trees and accept 6 replacement trees to be installed in the future and accepted an amendment from Commissioner Hayes for staff to contact and work with the South Bay Parkland Conservancy and other appropriate agencies in the removal of the trees. Seconded by Commisoner Hayes. Motion passes 4-1. Aye: Vice Chairperson Dunbabin, Commissioner Brittain, Commissioner Legvold, Commissioner Hayes. No: Commissioner Grethen. b. South Bay Cities Council of Government’s Local Travel Network 66 Public Works Commission Regular Meeting Agenda November 16, 2022 City of Hermosa Beach Page 8 Environmental Programs Manager Douglas Krauss with South Bay Cities staff Aaron Baum and David Ledger presented the South Bay Cities Council of Government’s Local Network. Commission asked questions and answers were provided by City and South Bay Cities staff. No public comments received. Commission provided comments and input for the South Bay Cities Council of Government’s Local Network. Commissioner Grethen recommended that 8th St east of Prospect Ave be deleted from the network and replaced with 9th St. c. Appointment of Public Works Commission Chairperson and Vice Chairperson for 2022 and Meeting Schedule for 2022 Public Works Director Joe SanClemente presented the staff report. Vice Chairperson Dunbabin would be Chairperson and Commissioner Brittan would be the Vice Chairperson. Commissioner Grethen moved to appoint Vice Chairperson Dunbabin as Chairperson and Commissioner Brittan as Vice Chairperson and receive and file the 2023 Public Works Commission schedule. Seconded by Commissioner Legvold. Motion passed 5-0. XIV. ADJOURNMENT Meeting adjourned at 9:48 PM. 67 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0048 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 ACTION MINUTES OF THE PLANNING COMMISSION REGULAR MEETING OF JANUARY 17, 2023 (Interim Community Development Director Corrie Kates) Recommended Action: Staff recommends City Council receive and file the action minutes of the Planning Commission regular meeting of January 17, 2023. Attachments: 1. Planning Commission Action Minutes Regular Meeting of January 17, 2023 Respectfully Submitted by: Corrie Kates, Interim Community Development Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 1 of 1 powered by Legistar™68 City Hall 1315 Valley Drive Hermosa Beach, CA 90254 City of Hermosa Beach Action Minutes - Draft Planning Commission Chair Stephen Izant Vice Chair Peter Hoffman Commissioners Marie Rice David Pedersen 6:00 PM Council Chambers (In-Person/Virtual)Tuesday, January 17, 2023 I. CALL TO ORDER The Planning Commission regular meeting was held in-person and virtually pursuant to Executive Order AB 361 issued by Governor Gavin Newsom on September 16, 2021.The meeting was called to order by Chair Stephen Izant at 6:00 PM. II. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was led by Vice Chair Peter Hoffman. III. ROLL CALL Staff present in-person in the Council Chambers: Corrie Kates, Interim Community Development Director Patrick Donegan, City Attorney James Atkins, Senior Planner Johnathon Masi, Assistant Planner Paul LeBaron, Police Chief Staff present virtually: Melanie Bristow, Administrative Assistant Commissioner David Pedersen, Chair Stephen Izant, Vice Chair Peter Hoffman, and Commissioner Marie Rice Present:4 - Absent:0 IV. PUBLIC PARTICIPATION -- ORAL AND WRITTEN COMMUNICATIONS a.REPORT 23-0050 WRITTEN COMMUNICATIONS (Administrative Assistant Melanie Bristow) The following person provided public comment: 1. Elaine Kim (virtually) Page 1City of Hermosa Beach 69 January 17, 2023Planning Commission Action Minutes - Draft Motion by Commissioner Rice and seconded by Commissioner Pedersen to receive and file written communications. The motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 V. CONSENT CALENDAR a.REPORT 22-0791 ACTION MINUTES OF THE PLANNING COMMISSION SPECIAL MEETING OF NOVEMBER 2, 2022, REGULAR MEETING OF NOVEMBER 15, 2022 and SPECIAL MEETING OF DECEMBER 5, 2022 (Administrative Assistant Melanie Bristow) Commissioner Rice requested to have two separate motions since she was not in attendance at the November 2nd meeting. Vice Chair Hoffman noted a correction to be made to the Commissioner Titles on the November 2nd minutes under agenda item III: Roll Call. Motion by Vice Chair Hoffman and seconded by Commissioner Pedersen to approve the amended action minutes of the Planning Commission special meeting of November 2, 2022. The motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, and Vice Chair Hoffman3 - Absent:0 Recused:Commissioner Rice1 - Commissioner Rice requested to amend the minutes of November 15, 2022 to add, at the top of page five, agenda item 8.b for Silvio's, "Pursuant to Staff recommendation, motion made to continue to the meeting of January 17, 2022." City Attorney Patrick Donegan agreed to this addition in the minutes. Commissioner Rice requested to amend the minutes of December 5, 2022 to correct the spelling of a name listed on agenda item V.b under Public Comment. Motion by Commissioner Rice and seconded by Vice Chair Hoffman to approve the amended action minutes of the Planning Commission regular meeting of November 15, 2022 and the amended minutes of the special meeting of December 5, 2022. Motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 VI. MUNICIPAL MATTERS a.REPORT 23-0035 MURAL DETERMINATION REQUEST (MD22-01) FOR A TRI-IMAGE 65.26 SQUARE FOOT PAINTED DISPLAY PROPOSED ON THE Page 2City of Hermosa Beach 70 January 17, 2023Planning Commission Action Minutes - Draft NORTHERLY WALL OF AN EXISTING COMMERCIAL BUILDING LOCATED AT 8 PIER AVENUE (HENNESSEY’S TAVERN) AND DETERMINE THAT THE PROJECT IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT. (Assistant Planner Johnathon Masi) Assistant Planner Johnathon Masi provided a staff report for this item. Motion by Commissioner Pedersen and seconded by Vice Chair Hoffman to approve Resolution 22-13 denying subject Mural Determination Case No. MD22-01, finding the existing painted display is a sign and not a mural, as set forth in HBMC 17.50.030. Motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 *This final action is subject to potential review by the City Council pursuant to Chapter 2.52 of the Municipal Code, * or may be appealed to the City Council by any party if filed by the deadline of Monday, February 6, 2023. VII. PUBLIC HEARING a.REPORT 23-0043 INFORMATION ONLY: PUBLIC NOTICE, POSTERS, PROJECT ZONING MAPS, RADIUS MAPS AND MAILING AFFIDAVITS (Administrative Assistant Melanie Bristow) b.REPORT 23-0034 CONTINUATION REQUEST FOR A PRECISE DEVELOPMENT PLAN AMENDMENT (PDP 22-04) TO ALLOW A 399 SQUARE FOOT ADDITION TO AN EXISTING CONDOMINIUM UNIT LOCATED AT 1723 GOLDEN AVENUE, AND DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (Assistant Planner Johnathon Masi) Assistant Planner Johnathon Masi provided a staff report for this item. There were no public comments on this item. Motion by Vice Chair Hoffman and seconded by Commissioner Rice to continue this item to the next regular meeting on February 21, 2023 to ensure time for proper public noticing. Motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 c.REPORT 23-0041 REQUEST FOR A CONDITIONAL USE PERMIT AMENDMENT (CUP 22-03) TO MODIFY THE EXISTING TYPE 41 ON-SALE BEER & WINE - EATING PLACE LICENSE, TO A TYPE 47 ON-SALE GENERAL - Page 3City of Hermosa Beach 71 January 17, 2023Planning Commission Action Minutes - Draft EATING PLACE LICENSE, FOR THE SALE OF BEER, WINE, AND DISTILLED SPIRITS FOR THE CONSUMPTION ON THE LICENSE PREMISES, AT AN EXISTING RESTAURANT LOCATED AT 20 PIER AVENUE (SILVIO’S SOUTH AMERICAN LOUNGE AND GRILL), WITH HOURS OF OPERATION OF 7 DAYS A WEEK, 6:00 A.M. TO 12:00 A.M., CEASING ALCOHOL SALES AT 11:30 P.M.; AND TO MAKE THE DETERMINATION THAT THE PROJECT IS CATEGORICALLY EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) (Senior Planner James Atkins) Senior Planner James Atkins provided a staff report for this item. Police Chief LeBaron voiced support for this project and said he is comfortable with the proposed CUP and is there to answer any questions. The following people provided public comment: 1. Doug Howarth (in-person) 2. Laura Pena (virtually) Chair Izant asked if Chief LeBaron is satisfied with the controls put into place to be able to address any future violations at this business. Chief LeBaron responded yes, and stated that Hermosa Police Department will have the ability to reach out to the owner regarding any future violations, if needed. Commissioner Rice inquired about the number of seats in this establishment. Senior Planner James Atkins stated that the original plan was outdated, and the current occupancy is 93 guests, which includes 49 seats on the interior and 44 seats on the patio. Commissioner Rice noted that the diagram provided does not match those numbers. Applicant Doug Howarth said the occupancy is currently 93 total seats, including 49 interior seats. Commissioner Pedersen asked if live entertainment will be permitted. Senior Planner Atkins responded that live entertainment was a covid-related special permit. Commissioner Pedersen inquired what time alcohol would cease and what time the restaurant would stop serving all together. Applicant Doug Howarth responded that Chair Izant questioned what happens to the CUP if Silvio’s moves or closes. City Attorney Donegan responded that the CUP stays with the land. Any new business that potentially moves into that space in the future would be bound by the same conditions stated in the CUP including the number of seats, hours, etc. Applicant Doug Howarth stated that 11:30 p.m. would be that latest that an alcoholic beverage could be ordered. No alcohol will be sold after 11:30 p.m. and alcohol will be removed from tables at midnight. Chair Izant inquired if the applicant would be able to keep the kitchen open until 1:00 a.m., according to this proposed CUP. City Attorney Donegan said the CUP would need to be amended to extend the hours in which food can be served if the applicant desired. As the CUP is currently proposed, all food and drink service would need to stop at midnight. Police Chief LeBaron commented that Hermosa Beach Police Department would prefer to keep the establishment hours as proposed in the CUP, including to close Page 4City of Hermosa Beach 72 January 17, 2023Planning Commission Action Minutes - Draft at midnight. He stated that the hours between midnight and 4:00 am are critical hours for public safety. During those hours, our Police Officers need to be focused on DUI’s, addressing fights, thefts, weapons, and other crimes in Hermosa Beach. For the Police Department, the more businesses that are open after midnight in the Downtown area, the more Police resources required in that specific area during those late-night hours, which would take the focus off the other crimes and other area. Vice Chair Hoffman commented that although he has denied this request on two previous occasions, he is in support of the proposed CUP now. He says what the applicant is proposing is exactly what the intention of the ordinance was when it was written. He supports this application with the proposed hours, including closing at midnight. Commissioner Pedersen voiced support for this item. Motion by Vice Chair Hoffman and seconded by Commissioner Rice to adopt as amended a resolution approving Conditional Use Permit Case No. 22-03 to allow the applicant to modify the existing Type 41 On-Sale Beer & Wine - Eating Place license, to a Type 47 On-Sale General - Eating Place license, for the sale of beer, wine, and distilled spirits for consumption on the license premises at an existing restaurant located at 20 Pier Avenue (Silvio's South American Lounge and Grill), with hours of operation of 7 days a week, 6:00 a.m. to 12:00 a.m., ceasing alcohol sales at 11:30 p.m.; adding to section three, number two, “…all patrons shall vacate the premises by 12:00 a.m. daily;” and to make the determination that the project is categorically exempt from the California Environmental Quality Act (CEQA). Motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 *This final action is subject to potential review by the City Council pursuant to Chapter 2.52 of the Municipal Code, * or may be appealed to the City Council by any party if filed by the deadline of Monday, February 6, 2023. VIII. STAFF ITEMS a.REPORT 23-0046 PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS (Administrative Assistant Melanie Bristow) b. VERBAL REPORT ON CITY COUNCIL ACTIONS c. STATUS REPORT ON MAJOR PLANNING PROJECTS Interim Community Development Director Corrie Kates shared that Community Development Staff is currently working on the Housing Element, and it will be brought back to Planning Commission soon. The FAR research is continuing and is estimated to be brought to Planning Commission around March. IX. COMMISSIONER ITEMS a. PLANNING COMMISSION COMMENTS Page 5City of Hermosa Beach 73 January 17, 2023Planning Commission Action Minutes - Draft b. FUTURE AGENDA ITEMS X. ADJOURNMENT Motion by Vice Chair Hoffman and seconded by Commissioner Rice to adjourn the meeting until the next regular meeting of the Planning Commission on Tuesday, February 21, 2023 at 6:00 PM. Motion carried as follows: Aye:Commissioner Pedersen, Chair Izant, Vice Chair Hoffman, and Commissioner Rice4 - Absent:0 The meeting was adjourned by Chair Izant at 7:18 PM. *Chapter 2.52, Section 2.52.040 of the Municipal Code provides for Council review and reconsideration of any decision of the Planning Commission by two affirmative votes at the next regularly scheduled City Council meeting. In the event the Council initiates a review, the review will be placed on a future agenda of City Council within a reasonable time, and the Commission’s decision is stayed pending Council’s review and final decision. Page 6City of Hermosa Beach 74 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0051 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 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;and (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. City of Hermosa Beach Printed on 1/19/2023Page 1 of 2 powered by Legistar™75 Staff Report REPORT 23-0051 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. Attachment: Assembly Bill 361 Respectfully Submitted by: Myra Maravilla, City Clerk Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 2 of 2 powered by Legistar™76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0040 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 ECONOMIC DEVELOPMENT STRATEGY PROGRESS REPORT (Interim Community Development Director Corrie Kates) Recommended Action: Staff recommends City Council: 1.Receive a staff presentation; 2.Provide staff direction regarding first year and possible second year priorities to inform the upcoming Fiscal Year 2022-2023 mid-year budget review and Fiscal Year 2023-2024 budget development process; and 3.Receive and file Economic Development Strategy Progress Report. Executive Summary: At its July 12,2022 meeting,City Council adopted the Economic Development Strategy (Attachment 1)as recommended by the Economic Development Committee.The adopted 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 ensures that Council and community are updated on Economic Development Strategy implementation.This is the first progress report presented to the City Council since the development of the strategy and will recur in January and July of each year. Background: At its April 28,2020 meeting,City Council approved the creation of the Economic Development Committee (EDC)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 EDC directed development of an Economic Development Strategy as specified in the Governance Element of PLAN Hermosa. Staff commissioned an Economic and Market Study Update (Attachment 3)to inform the EDC and Stakeholders Advisory Working Group in preparation of the Economic Development Strategy.At its July 12,2022 meeting,City Council adopted the Economic Development Strategy (Attachment 1), which includes 30 strategic actions.The actions include steps to enhance and strengthen the local economy through beautification;code changes;and other pro-active steps to encourage success and City of Hermosa Beach Printed on 1/19/2023Page 1 of 7 powered by Legistar™96 Staff Report REPORT 23-0040 economy through beautification;code changes;and other pro-active steps to encourage success and help the City’s business partners as they serve and enhance the quality of life in the community. Past City Council, Commission, and Economic Development 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 G roup 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. July 12, 2022 City Council adopted Economic Development Strategy and First Year Implementation Priorities . City of Hermosa Beach Printed on 1/19/2023Page 2 of 7 powered by Legistar™97 Staff Report REPORT 23-0040 Discussion: 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-term (3+years)implementation.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;Downtown; Municipal Code Amendments;Business Outreach;and City Economic Development work program.A list of Economic Development Strategy First-Year Implementation Priorities is included as Attachment 2. City staff and the Hermosa Beach Chamber of Commerce and Visitors Bureau are responsible for implementation work,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 biannual report ensures that the Council and community are updated on Economic Development Strategy implementation and that priorities are identified each year.This is the first progress report to the City Council. The following table includes the ten priority first year strategic actions and progress updates, including actions in all five categories: First-Year Implementation Priorities and Status Strategic Action Progress Update #1 Wayfinding Signs The FY 2022–23 Budget includes $80,000 under CIP 111 for Gateway and Wayfinding Signs Assessment. This funding supports the assessment phase and additional funding may be necessary for design and installation. #9 Work with Business Community to Explore Formation of a Downtown Business Improvement District (BID) Staff is currently working with a BID formation expert firm to plan and hold a BID Educational Forum. The educational forum, with an estimated cost of $5,000, will provide information and determine business and/or property owner interest. #10 Focused Update of Downtown Revitalization Strategy, Including Preservation of Downtown Retail and Restaurants and Other Active Uses on 1st Floor No reportable action. #11 Develop Identity/Vision for the Downtown No reportable action. #12 Comprehensive Downtown Lighting Evaluation With Complete Photometric Study, Design, and Installation The FY 2022–23 Budget includes $150,000 under CIP 621 for Comprehensive Downtown Lighting Assessment. This funding supports the assessment phase and additional funding may be necessary for design and installation. #14 Permanently Allow Outdoor Dining Areas and Lane Reconfigurations Consideration of fees and other changes to the temporary outdoor dining areas and lane reconfiguration program is on the 1 /24/23 City Council agenda . #15 Long Term Allowance of Outdoor Music in Business Locations This item will be reviewed and considered along with the temporary outdoor dining are as and lane reconfiguration program. #17 Regular Communication with Key Property Owners to Encourage Reinvestment and Provide Support as Needed. Staff has held meetings with at least two p roperty owners to discuss potential property improvements. #20 Shop Local Program Staff initiated the Shop Hermosa program in December 2022. The program has already featured a shop local banner across Pier Avenue during the holidays and social media promotions. A dedicated webpage is currently in development. #21 Provide Hermosa Beach Business Information to Event Promoters to Encourage Use of Local Vendors and Distribution to Participants. City staff provides a l ink to local businesses to event producers so that they may share the information with participants. The b usiness directory list is provided by Chamber of Commerce at Trulyhermosa.com. The City issued an encroachment permit to the Chamber of Commerce to place decals on sidewalks with QR code that links to business directory. City of Hermosa Beach Printed on 1/19/2023Page 3 of 7 powered by Legistar™98 Staff Report REPORT 23-0040 First-Year Implementation Priorities and Status Strategic Action Progress Update #1 Wayfinding Signs The FY 2022–23 Budget includes $80,000 under CIP 111 for Gateway and Wayfinding Signs Assessment. This funding supports the assessment phase and additional funding may be necessary for design and installation. #9 Work with Business Community to Explore Formation of a Downtown Business Improvement District (BID) Staff is currently working with a BID formation expert firm to plan and hold a BID Educational Forum. The educational forum, with an estimated cost of $5,000, will provide information and determine business and/or property owner interest. #10 Focused Update of Downtown Revitalization Strategy, Including Preservation of Downtown Retail and Restaurants and Other Active Uses on 1st Floor No reportable action. #11 Develop Identity/Vision for the Downtown No reportable action. #12 Comprehensive Downtown Lighting Evaluation With Complete Photometric Study, Design, and Installation The FY 2022–23 Budget includes $150,000 under CIP 621 for Comprehensive Downtown Lighting Assessment. This funding supports the assessment phase and additional funding may be necessary for design and installation. #14 Permanently Allow Outdoor Dining Areas and Lane Reconfigurations Consideration of fees and other changes to the temporary outdoor dining areas and lane reconfiguration program is on the 1 /24/23 City Council agenda . #15 Long Term Allowance of Outdoor Music in Business Locations This item will be reviewed and considered along with the temporary outdoor dining are as and lane reconfiguration program. #17 Regular Communication with Key Property Owners to Encourage Reinvestment and Provide Support as Needed. Staff has held meetings with at least two p roperty owners to discuss potential property improvements. #20 Shop Local Program Staff initiated the Shop Hermosa program in December 2022. The program has already featured a shop local banner across Pier Avenue during the holidays and social media promotions. A dedicated webpage is currently in development. #21 Provide Hermosa Beach Business Information to Event Promoters to Encourage Use of Local Vendors and Distribution to Participants. City staff provides a l ink to local businesses to event producers so that they may share the information with participants. The b usiness directory list is provided by Chamber of Commerce at Trulyhermosa.com. The City issued an encroachment permit to the Chamber of Commerce to place decals on sidewalks with QR code that links to business directory. City of Hermosa Beach Printed on 1/19/2023Page 4 of 7 powered by Legistar™99 Staff Report REPORT 23-0040 Additionally,although it was not identified as a priority for first-year implementation,then-Mayor Detoy chose to include Beautification Awards with the Hermosa Beach State of the City event, recognizing Sea Sprite Hotel for its renovation and upgrades in 2022. Additional Economic Development Strategy Implementation #4 Beautification Awards Mayor’s State of the City Address event held October 27, 2022. Progress has been made on eight of the ten strategic actions identified for first year implementation in the first half of the fiscal year.Ongoing implementation of the strategic actions requires funding and staff resources.Foreseeing no new general fund revenue in the near-term,staff requests City Council feedback or direction regarding first-year and possible second-year priorities.Staff will report on the progress underway at the next scheduled progress report to City Council in July 2023.Waiting until the July progress report would miss the opportunity to inform the upcoming Fiscal Year 2022-2023 mid-year budget review at the end of February and Fiscal Year 2023-2024 budget development process. 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 City of Hermosa Beach Printed on 1/19/2023Page 5 of 7 powered by Legistar™100 Staff Report REPORT 23-0040 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: ·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 City of Hermosa Beach Printed on 1/19/2023Page 6 of 7 powered by Legistar™101 Staff Report REPORT 23-0040 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. Fiscal Impact: There is no fiscal impact associated with recommended action to receive and file the Economic Development Strategy progress report.The Fiscal Year 2022-2023 budget includes approximately $230,000 to support two of the first-year priorities with additional funding needs possibly for full implementation.Any costs associated with ongoing implementation would be included in the annual budget adoption process,should Council direct.Implementation of the Economic Development Strategy has the potential to increase City revenues and strengthen the local economy,especially when balanced with maintaining and improving all areas of municipal services. Attachments: 1.Economic Development Strategy 2.Economic Development Strategy First Year Implementation Priorities 3.Economic and Market Study Update 4.Link to March 4, 2020 City Council and Planning Commission Joint Meeting Agenda 5.Link to April 21, 2020 Planning Commission Agenda 6.Link to April 28, 2020 City Council Staff Report 7.Link to June 1, 2020 Economic Development Committee Staff Report 8.Link to September 28, 2021 City Council Staff Report 9.Link to May 2, 2022 Economic Development Committee Staff Report 10.Link to July 12, 2022 City Council Staff Report Respectfully Submitted by: Christy Teague, Senior Planner and Business Liaison Concur: Corrie Kates, Interim Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 7 of 7 powered by Legistar™102 103 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. 104 Economic and Demographic Conditions Hermosa Beach Demographics 2010 2020 105 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. 106 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) 107 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 108 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. 109 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 110 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 111 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. 112 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. 113 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 114 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 115 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 116 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 117 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. 118 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 119 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. 120 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 121 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 122 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 6 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. 123 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 7 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. 124 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 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- 125 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 9 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 126 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 10 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 127 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 11 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 128 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 12 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 129 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 13 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. 130 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: 131 • 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. 132 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 133 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. 134 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 135 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 136 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 ...................... 35 137 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 ........................................................... 30 138 Economic & Planning Systems, Inc. 1 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 139 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 140 Economic & Planning Systems, Inc. 3 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 141 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 4 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 142 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 5 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx develop more in Hermosa as an extension of the work from home trend, offering flexibility between a home office and a more typical workplace. 143 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 6 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 144 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 7 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx • 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. 145 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 8 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx • 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. 146 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 9 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 147 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 10 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 148 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 11 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Figure 1 Beach Cities Map Source: ESRI 149 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 12 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 150 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 13 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 151 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 14 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 152 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 15 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 153 Economic & Planning Systems, Inc. 16 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 154 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 17 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 155 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 18 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 156 Economic & Planning Systems, Inc. 19 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 157 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 20 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 158 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 21 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 159 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 22 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 160 Economic & Planning Systems, Inc. 23 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 161 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 24 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 162 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 25 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 163 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 26 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 164 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 27 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 165 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 28 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 166 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 29 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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) 167 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 30 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 168 Market and Economic Analysis Update City of Hermosa Beach Report June 1, 2021 Economic & Planning Systems, Inc. 31 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 169 APPENDIX A: Business Community Input 170 • 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 171 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-1 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx APPENDIX B 2014 Report Key Findings 172 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-1 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 173 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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. 174 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-3 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 175 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-4 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 176 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx APPENDIX C Supporting Data 177 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 178 Market and Economic Analysis Hermosa Beach Downtown Strategy Administrative Draft Report — Appendix 1/13/2014 Economic & Planning Systems, Inc. A-3 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx 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 179 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 23-0049 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 CONSIDERATION OF FEES AND OTHER CHANGES TO THE TEMPORARY OUTDOOR DINING PROGRAM (Environmental Programs Manager Douglas Krauss) Recommended Action: Staff recommends City Council: 1.Consider the encroachment market rent rates from the recent appraisal of local real property; 2.Consider concluding the temporary outdoor dining encroachments on Pier Plaza; and 3.Consider concluding the allowance of roof-top dining areas on private property authorized during the COVID-19 pandemic. Executive Summary: At its November 3,2022 meeting,City Council extended the temporary outdoor dining and downtown lane reconfiguration programs through May 1,2023 and directed staff to return with an item to consider a permanent version of the temporary outdoor dining program before the extended expiration date.An item to consider a permanent version of the program will include any necessary environmental determinations,code changes,or other administrative instruments necessary to implement the program. Council also directed staff to return with an item discussing encroachment fees and possible changes to some of the temporary dining program elements on Pier Plaza.Possible changes for City Council consideration include eliminating the temporary encroachments on Pier Plaza,ending temporary authorization of rooftop dining, and discussing changes to encroachment fees. Background: The City has long supported and encouraged outdoor dining on private and public property to activate place-making strategies and 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 and public streets.The City further allowed existing permanent encroachments,such as City of Hermosa Beach Printed on 1/19/2023Page 1 of 7 powered by Legistar™180 Staff Report REPORT 23-0049 sidewalks and public streets.The City further allowed existing permanent encroachments,such as those on Pier Plaza,to temporarily expand their encroachment areas.Both the private property programs and encroachment program (together,the “Outdoor Permit Program”)include a basic set of guidelines. These guidelines include: ·Business hours no later than 11:00 P.M.; ·Maintenance of cleanliness; ·Alcohol service only with food; and ·Insurance maintained by permittees. The City has issued over 60 temporary outdoor dining permits 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.At its June 22,2021 meeting,Council approved extension of the program through December 31,2021 and authorized implementation of a reapplication process for outdoor dining areas that included: ·Renewal of applicants’permissions from neighboring businesses where decks encroach upon the frontage of these other businesses; and ·Requirement of a surety bond or deposit to fund any City costs related to deck removal in the event of maintenance emergencies or abandonment. 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.Several businesses have since removed their temporary dining areas.City staff has worked with all the businesses utilizing the temporary encroachments to help ensure fees and necessary paperwork have been submitted. To date,all but a few businesses are current on its fees.As of December 2022,there are eleven businesses with outstanding fees totaling approximately $40,000 in uncollected revenue for calendar year 2022.These businesses have been notified of these outstanding fees and Code Enforcement staff is following up with citations and possible removal of on-street decks where applicable.Program revenues for the temporary encroachment areas are estimated to be approximately $295,038 annually based on the current temporary encroachments.At its February 8,2022 meeting,Council also approved reinstatement of the prior permanent encroachment fees. These fees generate approximately $287,821 annually.At its November 3,2022 meeting,Council extended the temporary program through May 1,2023 with direction to staff to return before that date with an item to consider a permanent version of the temporary outdoor dining program for City of Hermosa Beach Printed on 1/19/2023Page 2 of 7 powered by Legistar™181 Staff Report REPORT 23-0049 date with an item to consider a permanent version of the temporary outdoor dining program for Council’s consideration. At that same meeting,Council directed staff to return with an update on encroachment fees based on a current property appraisal report addressing the City’s public right-of-way encroachments.In conjunction with the discussion of fees,staff recommends City Council provide staff direction regarding the possible end of the temporary outdoor dining encroachments on Pier Plaza and the temporary allowance of rooftop dining, as well as any other program adjustments. 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 extension of programs through January 2023 June 14, 2022 Approved additional refinements to the outdoor dining programs November 3, 2022 Approved extension of temporary programs through May 1, 2023 Analysis: The City currently charges fees for public right-of-way encroachments that vary with location and business operation and hours. The rates are shown in the table below: Location and Operation Category Fee per square foot per month On Pier Plaza, open after midnight $5 On Pier Plaza, closed before midnight $2 Not on Pier Plaza, or snack shop on Pier Plaza $1 City of Hermosa Beach Printed on 1/19/2023Page 3 of 7 powered by Legistar™182 Staff Report REPORT 23-0049 The City previously authorized an appraisal of public right-of-way encroachment areas in 2017 to inform reconsideration of fees.For the categories described above,this appraisal provided market rental rates of $5.63 (Pier Plaza,open after midnight),$4.50 (Pier Plaza,closed before midnight)and $1.58 (Not on Pier Plaza,or snack shop).At that time,the City did not adjust fees based on the appraisal report.At its January 25,2022 meeting,Council implemented fees of $1.50 per square foot for temporary dining encroachments citywide. A new appraisal was completed in November 2022.The appraisal assessed properties in the public right-of-way,including existing permanent encroachments and temporary dining encroachments. Unlike the existing rates for permanent encroachments,the appraisal did not consider the business type or operation hours.It assessed,based on three location categories and assigned property values to each, as shown in the table below: Locations Market Rental Rate (per square foot per month) Pier Plaza $5.67 Non-Pier Plaza (areas primarily along Hermosa Avenue, north and south of the Plaza) $4.63 East of Hermosa Avenue (primarily Pier Avenue, up to Pacific Coast Highway) $4.00 These values were determined using data from recent property acquisitions in the area and the region.The appraisal factors in a review of similar appraisal data throughout the region. Conversations with local commercial real estate brokers indicate that these appraised rental rates are on par with current actual rental rates for interior spaces in Hermosa Beach which are trending about a dollar per square foot higher across these same areas.The information is provided to Council to assist in consideration of changes to the current encroachment fees for both permanent and temporary areas.The information can also assist in determining fees for the proposed permanent outdoor dining encroachment program,which will be brought for Council’s consideration before May 1, 2023. For Council’s consideration and discussion,staff developed a revenue estimate based on a hypothetical fee scenario applying the recently appraised rates to all current encroachments,per location.The estimate does not factor in the business operations and hours.The chart below shows a comparison of approximate current fee revenues and the revenue from the hypothetical fee scenario.The information is detailed in Attachment 1.Both revenue estimates include fee information for the permanent and temporary dining areas, both on Pier Plaza and elsewhere. Fee scenario Estimated Revenue Current $582,859 Using appraised market rates applied to current encroachments $1,617,125 City of Hermosa Beach Printed on 1/19/2023Page 4 of 7 powered by Legistar™183 Staff Report REPORT 23-0049 Fee scenario Estimated Revenue Current $582,859 Using appraised market rates applied to current encroachments $1,617,125 As set by Council,the fees for permanent encroachment areas citywide are currently based on a combination of location,business operation type,and hours open.The estimates based on the new appraisal report market rental rates indicate potential increases in encroachment fees for individual businesses ranging from 13 percent to 1,000 percent.Staff also developed a scenario showing these hypothetical increases phased in over two years to help offset impact of the increased fees (Attachment 2).The estimate of $1,617,125 using the appraisal market rates assumes that all permanent and temporary encroachments would endure although staff recommends Council consider eliminating temporary encroachments on Pier Plaza, as explained later in this report. For reference,Redondo Beach charges $2 per square foot for its outdoor dining decks and Manhattan Beach has temporarily waived its fees for outdoor dining decks,which is $3 per square foot for sidewalk dining encroachments.The appraisal report surveyed several cities throughout the region and found a wide variety of rates for similar public encroachment areas.Most of the cities surveyed charge nominal,below-market rates for their encroachment areas although many also charge additional one-time fees to cover such things as administrative costs or wastewater treatment costs. Most agencies charge per square foot while some charge flat annual fees. Additional Recommendations Staff recommends Council consider ending the allowance for temporary outdoor dining encroachments on Pier Plaza.These were initially authorized in response to the COVID-19 pandemic and the indoor dining restrictions that were instituted by Los Angeles County Department of Public Health.Restrictions on indoor dining have since been lifted and the businesses on Pier Plaza have benefitted from the use of the extra encroachment areas,which allowed the businesses to expand their existing 13 feet of dining area by an additional 12 feet into Pier Plaza-essentially a doubling of existing permitted outdoor dining areas.Businesses outside of Pier Plaza have also benefitted from the opportunity to utilize on-street dining decks,sidewalk areas,and private property dining areas, however,the available square footage is typically much more limited than that of the businesses on Pier Plaza,especially for on-street dining decks.To help balance the equity of public right-of-way used by downtown businesses,staff recommends Council suspend use of the additional temporary encroachment areas on Pier Plaza indefinitely.This would also allow some of this iconic community area,currently being used by private businesses,to be enjoyed again for passive use by members of the community and the general public, which was one of the original goals of the Plaza. Additionally,in response to indoor dining restrictions implemented during the COVID-19 pandemic, City of Hermosa Beach Printed on 1/19/2023Page 5 of 7 powered by Legistar™184 Staff Report REPORT 23-0049 Additionally,in response to indoor dining restrictions implemented during the COVID-19 pandemic, the City allowed some businesses to add dining areas on their rooftops.Baja Sharkeez and Palmilla, both located on Pier Plaza,were allowed to utilize rooftop dining areas.The City allowed these temporarily with conditions that the businesses restrict overall building occupancy load to address concerns of ingress and egress.These rooftop areas were not previously designed for,nor approved for,regular use by patrons,but City Building Department staff worked with the businesses to ensure the safety of these temporary uses. As with the temporary encroachments on Pier Plaza,the allowance of this extra dining area is no longer necessary and suspending its use would help improve parking availability,as well as the overall equitable distribution of dining availability in the downtown area.It would also alleviate the need for Code Enforcement staff to monitor these businesses compliance with maintaining occupancy loads.Staff recommends Council suspend use of these temporary rooftop dining areas. These businesses may contact the City’s Community Development department to apply for permanent use of these spaces and address long-term safety concerns and any other issues related to increased occupancy. 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: Governance Element Goal 6.A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism. Policies: ·6.4 Business support.Support the Chamber of Commerce,retailers,tourist service businesses,artists,and other agencies to develop an aggressive marketing strategy with implementation procedures. ·6.6 Pop-up shops.Develop plans and programs for underutilized spaces,such as vacant buildings,utility corridors,parkways,etc.,for temporary retail,restaurant,and community promoting uses. Mobility Element Goal 1.Complete Streets (Living Streets)that serve the diverse functions of mobility, commerce,recreation,and community engagement for all users whether they travel by walking, bicycling, transit, or driving. Policy: ·1.1 Consider all modes.Require the planning,design,and construction of all new and City of Hermosa Beach Printed on 1/19/2023Page 6 of 7 powered by Legistar™185 Staff Report REPORT 23-0049 ·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 current fee of $1.50 per square foot per month for the temporary dining areas generates approximately $295,038 annually.The permanent encroachments generate approximately $287,821 annually.As described above,should Council approve increasing all fees to match the rates detailed in the appraisal report and eliminate the factors of business operation type and hours,annual encroachment fee revenue would be approximately $1,617,125.Should Council approve ending the temporary encroachments on Pier Plaza,this revenue estimate would decrease by approximately $117,162. Attachments: 1.Encroachment Fee Comparison with Market Rental Rates 2.Encroachment Fee Comparison with Two Year Market Rental Rates 3.Link to June 9, 2020 City Council Staff Report 4.Link to July 14, 2020 City Council Staff Report 5.Link to June 22, 2021 City Council Staff Report 6.Link to July 13, 2021 City Council Staff Report 7.Link to October 26, 2021 City Council Staff Report 8.Link to December 14, 2021 City Council Staff Report 9.Link to January 25, 2022 City Council Staff Report 10.Link to February 8, 2022 City Council Staff Report 11.Link to May 24, 2022 City Council Staff Report 12.Link to June 14, 2022 City Council Staff Report 13.Link to November 3, 2022 City Council Staff Report Respectfully Submitted by: Douglas Krauss, Environmental Programs Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Pat Donegan, City Attorney Approved: Suja Lowenthal, City Manager City of Hermosa Beach Printed on 1/19/2023Page 7 of 7 powered by Legistar™186 BUSINESS NAME DIFFERENCE % INCREASE PERMANENT PIER PLAZA ALOHA SHARKEEZ 390 1,950.00 23,400.00 390 5.67 2,211.30 26,535.60 3,135.60 13.40% 8 WATERMANS (FORMERLY BEACH CLUB)325 1,069.25 12,831.00 325 5.67 1,842.75 22,113.00 9,282.00 72.34% 1 HENNESSEY'S TAVERN 975 4,875.00 14,625.00 *3 months 975 5.67 5,528.25 16,584.75 1,959.75 13.40%*3 months 2 PALMILLA COCINA TEQUILA 267.6 1,338.00 16,056.00 267.6 5.67 1,517.29 18,207.50 2,151.50 13.40% PATRICK MOLLOY'S 429 2,145.00 25,740.00 429 5.67 2,432.43 29,189.16 3,449.16 13.40% AMERICAN JUNKIE 780 3,900.00 46,800.00 780 5.67 4,422.60 53,071.20 6,271.20 13.40% 3 THE LIGHTHOUSE 390 1,950.00 5,850.00 *3 months 390 5.67 2,211.30 6,633.90 783.90 13.40%*3 months GRAND TOTAL 145,302.00 TOTAL 20,165.92 172,335.11 27,033.11 18.60% DIFFERENCE % INCREASE * 1 HENNESSEY'S TAVERN (CLOSED BEFORE MIDNIGHT @ $2/SQ. FT.)975 1,950.00 17,550.00 *9 months 975 5.67 5,528.25 49,754.25 32,204.25 183.50%*9 months * 3 THE LIGHTHOUSE (CLOSED BEFORE MIDNIGHT @ $2/SQ. FT.)390 780.00 7,020.00 *9 months 390 5.67 2,211.30 19,901.70 12,881.70 183.50%*9 months 5 CAFÉ BONAPARTE (FORMERLY DOWNTOWN BAKERY) SNACK SHOP 341 341.00 4,092.00 341 5.67 1,933.47 23,201.64 19,109.64 467.00% PLAYA HERMOSA FISH & OYSTER CO 326 652.00 7,824.00 326 5.67 1,848.42 22,181.04 14,357.04 183.50% 2 PALMILLA COCINA TEQUILA 189.6 379.20 4,550.40 189.6 5.67 1,075.03 12,900.38 8,349.98 183.50% 6 LORETO PLAZA/TOWER 12 (rate increased 1/1/2023)- Separate contract 884 2,934.88 35,218.56 884 3.32 2,934.88 35,218.56 0.00 0.00% BREW'S HALL (formerly Mediterraneo/Rebel Republic)390 780.00 9,360.00 390 5.67 2,211.30 26,535.60 17,175.60 183.50% OAKBERRY ACAI (Formerly ITA Italian Street Food {and Hooked Poke Market} Snack Shop)143 143.00 1,716.00 143 5.67 810.81 9,729.72 8,013.72 467.00% SILVIO'S BRAZILIAN BBQ 390 780.00 9,360.00 390 5.67 2,211.30 26,535.60 17,175.60 183.50% GREENSPOT (Formerly Greenbelt and Chop Shop)260 520.00 6,240.00 260 5.67 1,474.20 17,690.40 11,450.40 183.50% 5 JUICED (FORMERLY THE FRESH SPOT) SNACK SHOP 130 130.00 1,560.00 130 5.67 737.10 8,845.20 7,285.20 467.00% GRAND TOTAL 104,490.96 TOTAL 33,309.85 252,494.09 148,003.13 141.64% PERMANENT NON-PIER PLAZA DIFFERENCE % INCREASE * 4 BOTTLE INN 570 Varies 2,850.00 570 4.83 2,753.10 33,037.20 30,187.20 1059.20% BARNACLES BAR & GRILL 200 200.00 2,400.00 200 4.83 966.00 11,592.00 9,192.00 383.00% GOOD STUFF 480 480.00 5,760.00 480 4.83 2,318.40 27,820.80 22,060.80 383.00% MARTHA'S 22 ND. ST. GRILL (OWNED BY BOTTLE INN)913.5 913.50 10,962.00 913.5 4.83 4,412.21 52,946.46 41,984.46 383.00% MICKEY'S ITALIAN DELI 384 384.00 4,608.00 384 4.83 1,854.72 22,256.64 17,648.64 383.00% PAISANO PIZZA & PASTA 50 50.00 600.00 50 4.83 241.50 2,898.00 2,298.00 383.00% THE BEACH HOUSE (square footage adjusted 4/1/2019)- Separate contract 480 480.00 5,760.00 480 4.83 2,318.40 27,820.80 22,060.80 383.00% THE GREEN STORE 312 312.00 3,744.00 312 4.83 1,506.96 18,083.52 14,339.52 383.00% GRAND TOTAL TOTAL 36,684.00 TOTAL 16,371.29 196,455.42 159,771.42 435.53% RENT/ MONTH ANNUAL RATEANNUAL RATE RENT/ SF/MONTH SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTH ANNUAL RATE SQ. FOOTAGE AMT PAID @ $2/SQ. FT. AMT PAID @ $1/SQ. FT. SQ. FOOTAGE Oct - June Oct - June TOTAL ANNUAL RATEAMT PAID @ $1/SQ. FT. SQ. FOOTAGE MIDNIGHT SNACK SHOP RENT/ MONTH ANNUAL RATE@ $5/sq. ft. OPEN AFTER MIDNIGHT Jul - Sep Jul - Sep TOTAL CLOSED BEFORE CURRENT RESTAURANT ENCROACHMENTS MARKET RENTAL RATE 2022 SQ. FOOTAGE AND FEES NO HOURS OF OPERATION, YEAR ROUND 2022-2023 SQ. FOOTAGE RENT/ MONTH ANNUAL RATE SQ. FOOTAGE RENT/ SF/MONTH 187 PERMANENT EAST OF HERMOSA AVENUE DIFFERENCE % INCREASE JAVA MAN 112 112.00 1,344.00 112 4.00 448.00 5,376.00 4,032.00 300.00% GRAND TOTAL TOTAL 1,344.00 TOTAL 448.00 5,376.00 4,032.00 300.00% TEMPORARY PIER PLAZA DIFFERENCE % INCREASE BAJA SHARKEEZ 360 540.00 6,480.00 360 5.67 2,041.20 24,494.40 18,014.40 278.00% BREWS HALL 986 1,479.00 17,748.00 986 5.67 5,590.62 67,087.44 49,339.44 278.00% CAFÉ BONAPARTE 120 180.00 2,160.00 120 5.67 680.40 8,164.80 6,004.80 278.00% GREENSPOT RESTAURANT 192 288.00 3,456.00 192 5.67 1,088.64 13,063.68 9,607.68 278.00% HEAVENLY COUTURE 150 225.00 2,700.00 150 5.67 850.50 10,206.00 7,506.00 278.00% HENNESSEY'S TAVERN 900 1,350.00 16,200.00 900 5.67 5,103.00 61,236.00 45,036.00 278.00% PALMILLA'S 390 585.00 7,020.00 390 5.67 2,211.30 26,535.60 19,515.60 278.00% PATRICK MOLLOY'S 288 432.00 5,184.00 288 5.67 1,632.96 19,595.52 14,411.52 278.00% PIER SURF 180 270.00 3,240.00 180 5.67 1,020.60 12,247.20 9,007.20 278.00% PLAYA HERMOSA FISH & OYSTER 1ST 288 432.00 5,184.00 288 5.67 1,632.96 19,595.52 14,411.52 278.00% PLAYA HERMOSA FISH & OYSTER 2ND 357 535.50 6,426.00 357 5.67 2,024.19 24,290.28 17,864.28 278.00% SILVIO'S BRAZILIAN BBQ 300 450.00 5,400.00 300 5.67 1,701.00 20,412.00 15,012.00 278.00% SPYDER II INC.200 300.00 3,600.00 200 5.67 1,134.00 13,608.00 10,008.00 278.00% TOWER 12 1095 1,642.50 19,710.00 1095 5.67 6,208.65 74,503.80 54,793.80 278.00% TREASURE CHEST 156 234.00 2,808.00 156 5.67 884.52 10,614.24 7,806.24 278.00% WATERMAN'S 300 450.00 5,400.00 300 5.67 1,701.00 20,412.00 15,012.00 278.00% WAVES 247 370.50 4,446.00 247 5.67 1,400.49 16,805.88 12,359.88 278.00% GRAND TOTAL 117,162.00 TOTAL 36,906.03 442,872.36 325,710.36 278.00% TEMPORARY NON-PIER PLAZA DIFFERENCE % INCREASE AGAVE AZUL 480 720.00 8,640.00 480 4.83 2,318.40 27,820.80 19,180.80 222.00% BROTHERS BURRITOS 450 675.00 8,100.00 450 4.83 2,173.50 26,082.00 17,982.00 222.00% CHEF MELBA'S BISTRO 96 144.00 1,728.00 96 4.83 463.68 5,564.16 3,836.16 222.00% DECADENCE 372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00% GOOD STUFF 900 1,350.00 16,200.00 900 4.83 4,347.00 52,164.00 35,964.00 222.00% HERMOSA BREWING CO.372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00% LA PLAYITA CAFÉ 480 720.00 8,640.00 480 4.83 2,318.40 27,820.80 19,180.80 222.00% 7 LOBSTER & BEER 792 1,188.00 14,256.00 792 4.83 3,825.36 45,904.32 31,648.32 222.00% JAPONICA 441 661.50 7,938.00 441 4.83 2,130.03 25,560.36 17,622.36 222.00% MOBI SCOOTERS 96 144.00 1,728.00 96 4.83 463.68 5,564.16 3,836.16 222.00% NORTH END BAR & GRILL 849 1,273.50 15,282.00 849 4.83 4,100.67 49,208.04 33,926.04 222.00% PAISANOS PIZZA 456 684.00 8,208.00 456 4.83 2,202.48 26,429.76 18,221.76 222.00% PEDONE'S PIZZA 372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00% ROK SUSHI 420 630.00 7,560.00 420 4.83 2,028.60 24,343.20 16,783.20 222.00% TACOS EL GOLOSO 91 136.50 1,638.00 91 4.83 439.53 5,274.36 3,636.36 222.00% THE SPOT 100 150.00 1,800.00 100 4.83 483.00 5,796.00 3,996.00 222.00% ZANES 588 882.00 10,584.00 588 4.83 2,840.04 34,080.48 23,496.48 222.00% GRAND TOTAL TOTAL 132,390.00 TOTAL 35,524.65 426,295.80 293,905.80 222.00% ANNUAL RATE AMT PAID @ $1/SQ. FT. ANNUAL RATE SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTH TOTAL ANNUAL RATE ANNUAL RATEAMT PAID @ $1.50/SQ. FT. AMT PAID @ $1.50/SQ. FT. SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTH ANNUAL RATE ANNUAL RATE RENT/ SF/MONTH RENT/ MONTH SQ. FOOTAGE SQ. FOOTAGE SQ. FOOTAGE SQ. FOOTAGE 188 TEMPORARY EAST OF HERMOSA AVENUE ANNUAL RATE DIFFERENCE % INCREASE BEACH BOUND 36 54.00 648.00 36 4.00 144.00 1,728.00 1,080.00 166.67% CREME DE LA CREPE 224 336.00 4,032.00 224 4.00 896.00 10,752.00 6,720.00 166.67% EL TARASCO 280 420.00 5,040.00 280 4.00 1,120.00 13,440.00 8,400.00 166.67% FUNDAMENTAL COAST 15 22.50 270.00 15 4.00 60.00 720.00 450.00 166.67% HOOK & PLOW 660 990.00 11,880.00 660 4.00 2,640.00 31,680.00 19,800.00 166.67% ROCKEFELLER 301 451.50 5,418.00 301 4.00 1,204.00 14,448.00 9,030.00 166.67% SOSTA CUCINA 72 108.00 1,296.00 72 4.00 288.00 3,456.00 2,160.00 166.67% THE SOURCE CAFÉ 620 930.00 11,160.00 620 4.00 2,480.00 29,760.00 18,600.00 166.67% TWO GUNS ESPRESSO 55 82.50 990.00 55 4.00 220.00 2,640.00 1,650.00 166.67% UNCORKED 264 396.00 4,752.00 264 4.00 1,056.00 12,672.00 7,920.00 166.67% GRAND TOTAL TOTAL 45,486.00 TOTAL 10,108.00 121,296.00 75,810.00 166.67% GRAND TOTAL 582,858.96 GRAND TOTAL 152,833.73 1,617,124.79 1,034,265.83 177.45% Notes: 1 Open after Midnight July - September only 2 Two different fees - Additional Patio not open after Midnight MARKET RATE FEE 3 Open after Midnight July - September only ON PIER PLAZA LOCATIONS $5.67 4 Encroachment rate varies: Jan-Mar $0 (patio closed), Apr-Jun $855 (half of patio), Jul-Sep $1,710 (full patio), Oct-Dec $285 (half of patio-one month)ON NON-PIER PLAZA LOCATIONS $4.83 5 Snack Shop Rate (CC:6/12/07)ON EAST OF HERMOSA AVENUE $4.00 6 Monthly fee based on 884 Sq Ft*$3.32/Sq Ft (Tower 12 rent/sf $6.64 x 50%). The rent will increase as the rent of the underlying lease between Pierside and Tower 12 increases. 7 Owner would like to start on 02/15/2023 *Various hours of operation, not year round SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTHAMT PAID @ $1.50/SQ. FT. ANNUAL RATESQ. FOOTAGE 189 Original - Appraisal Recommendation based on spreadsheets BUSINESS NAME DIFFERENCE % INCREASE PERMANENT PIER PLAZA ALOHA SHARKEEZ 390 1,950.00 23,400.00 390 5.67 2,211.30 26,535.60 3,135.60 13.40% 8 WATERMANS (FORMERLY BEACH CLUB)325 1,069.25 12,831.00 325 5.67 1,842.75 22,113.00 9,282.00 72.34% 1 HENNESSEY'S TAVERN 975 4,875.00 14,625.00 *3 months 975 5.67 5,528.25 16,584.75 1,959.75 13.40%*3 months 2 PALMILLA COCINA TEQUILA 267.6 1,338.00 16,056.00 267.6 5.67 1,517.29 18,207.50 2,151.50 13.40% PATRICK MOLLOY'S 429 2,145.00 25,740.00 429 5.67 2,432.43 29,189.16 3,449.16 13.40% AMERICAN JUNKIE 780 3,900.00 46,800.00 780 5.67 4,422.60 53,071.20 6,271.20 13.40% 3 THE LIGHTHOUSE 390 1,950.00 5,850.00 *3 months 390 5.67 2,211.30 6,633.90 783.90 13.40%*3 months GRAND TOTAL 145,302.00 TOTAL 20,165.92 172,335.11 27,033.11 18.60% RENT RENT RENT RENT RATE RENT/BASED ON BASED ON ANNUAL RENT/BASED ON BASED ON ANNUAL DIFFERENCE % INCREASE DIFF.OVER 2 YRS.SF/MO.YR. ROUND INCREASE RATE SF/MO.YR. ROUND INCREASE RATE * 1 HENNESSEY'S TAVERN (CLOSED BEFORE MIDNIGHT @ $2/SQ. FT.)975 1,950.00 17,550.00 *9 months 975 5.67 5,528.25 49,754.25 32,204.25 183.50%3.67 1.84 3.84 17,550.00 16,102.13 33,652.13 5.67 17,550.00 32,204.25 49,754.25 * 3 THE LIGHTHOUSE (CLOSED BEFORE MIDNIGHT @ $2/SQ. FT.)390 780.00 7,020.00 *9 months 390 5.67 2,211.30 19,901.70 12,881.70 183.50%3.67 1.84 3.84 7,020.00 6,440.85 13,460.85 5.67 7,020.00 12,881.70 19,901.70 5 CAFÉ BONAPARTE (FORMERLY DOWNTOWN BAKERY) SNACK SHOP 341 341.00 4,092.00 341 5.67 1,933.47 23,201.64 19,109.64 467.00%4.67 2.34 3.34 13,646.82 13,646.82 5.67 23,201.64 23,201.64 PLAYA HERMOSA FISH & OYSTER CO 326 652.00 7,824.00 326 5.67 1,848.42 22,181.04 14,357.04 183.50%3.67 1.84 3.84 15,002.52 15,002.52 5.67 22,181.04 22,181.04 2 PALMILLA COCINA TEQUILA 189.6 379.20 4,550.40 189.6 5.67 1,075.03 12,900.38 8,349.98 183.50%3.67 1.84 3.84 8,725.39 8,725.39 5.67 12,900.38 12,900.38 6 LORETO PLAZA/TOWER 12 (rate increased 1/1/2023)- Separate contract 884 2,934.88 35,218.56 884 3.32 2,934.88 35,218.56 0.00 0.00%- 3.32 35,218.56 35,218.56 3.32 35,218.56 35,218.56 BREW'S HALL (formerly Mediterraneo/Rebel Republic)390 780.00 9,360.00 390 5.67 2,211.30 26,535.60 17,175.60 183.50%3.67 1.84 3.84 17,947.80 17,947.80 5.67 26,535.60 26,535.60 OAKBERRY ACAI (Formerly ITA Italian Street Food {and Hooked Poke Market} Snack Shop)143 143.00 1,716.00 143 5.67 810.81 9,729.72 8,013.72 467.00%4.67 2.34 3.34 5,722.86 5,722.86 5.67 9,729.72 9,729.72 SILVIO'S BRAZILIAN BBQ 390 780.00 9,360.00 390 5.67 2,211.30 26,535.60 17,175.60 183.50%3.67 1.84 3.84 17,947.80 17,947.80 5.67 26,535.60 26,535.60 GREENSPOT (Formerly Greenbelt and Chop Shop)260 520.00 6,240.00 260 5.67 1,474.20 17,690.40 11,450.40 183.50%3.67 1.84 3.84 11,965.20 11,965.20 5.67 17,690.40 17,690.40 5 JUICED (FORMERLY THE FRESH SPOT) SNACK SHOP 130 130.00 1,560.00 130 5.67 737.10 8,845.20 7,285.20 467.00%4.67 2.34 3.34 5,202.60 5,202.60 5.67 8,845.20 8,845.20 104,490.96 252,494.09 148,003.13 141.64%178,492.53 252,494.09 RENT RENT RENT RENT PERMANENT NON-PIER PLAZA RATE RENT/ BASED ON BASED ON ANNUAL RENT/ BASED ON BASED ON ANNUAL DIFFERENCE % INCREASE DIFF.OVER 2 YRS. SF/MO. YR. ROUND INCREASE RATE SF/MO. YR. ROUND INCREASE RATE * 4 BOTTLE INN 570 Varies 2,850.00 570 4.83 2,753.10 33,037.20 30,187.20 1059.20%3.83 1.92 2.92 19,938.60 19,938.60 4.83 33,037.20 33,037.20 BARNACLES BAR & GRILL 200 200.00 2,400.00 200 4.83 966.00 11,592.00 9,192.00 383.00%3.83 1.92 2.92 6,996.00 6,996.00 4.83 11,592.00 11,592.00 GOOD STUFF 480 480.00 5,760.00 480 4.83 2,318.40 27,820.80 22,060.80 383.00%3.83 1.92 2.92 16,790.40 16,790.40 4.83 27,820.80 27,820.80 MARTHA'S 22 ND. ST. GRILL (OWNED BY BOTTLE INN)913.5 913.50 10,962.00 913.5 4.83 4,412.21 52,946.46 41,984.46 383.00%3.83 1.92 2.92 31,954.23 31,954.23 4.83 52,946.46 52,946.46 MICKEY'S ITALIAN DELI 384 384.00 4,608.00 384 4.83 1,854.72 22,256.64 17,648.64 383.00%3.83 1.92 2.92 13,432.32 13,432.32 4.83 22,256.64 22,256.64 PAISANO PIZZA & PASTA 50 50.00 600.00 50 4.83 241.50 2,898.00 2,298.00 383.00%3.83 1.92 2.92 1,749.00 1,749.00 4.83 2,898.00 2,898.00 THE BEACH HOUSE (square footage adjusted 4/1/2019)- Separate contract 480 480.00 5,760.00 480 4.83 2,318.40 27,820.80 22,060.80 383.00%3.83 1.92 2.92 16,790.40 16,790.40 4.83 27,820.80 27,820.80 THE GREEN STORE 312 312.00 3,744.00 312 4.83 1,506.96 18,083.52 14,339.52 383.00%3.83 1.92 2.92 10,913.76 10,913.76 4.83 18,083.52 18,083.52 36,684.00 196,455.42 159,771.42 435.53%118,564.71 196,455.42 RENT RENT RENT RENT PERMANENT EAST OF HERMOSA AVENUE DIFFERENCE % INCREASE RATE RENT/ BASED ON BASED ON ANNUAL RENT/ BASED ON BASED ON ANNUAL DIFF.OVER 2 YRS. SF/MO. YR. ROUND INCREASE RATE SF/MO. YR. ROUND INCREASE RATE JAVA MAN 112 112.00 1,344.00 112 4.00 448.00 5,376.00 4,032.00 300.00%3.00 1.50 2.50 3,360.00 3,360.00 4.00 5,376.00 5,376.00 1,344.00 5,376.00 4,032.00 300.00%3,360.00 5,376.00 SQ. FOOTAGE SQ. FOOTAGE MARKET RENTAL RATE 2022 - INCREASE OVER 2 YEARS TOTAL CLOSED BEFORE SQ. FOOTAGE RENT/ SF/MONTH CURRENT RESTAURANT ENCROACHMENTS SQ. FOOTAGE AND FEES 2022-2023 RENT/ MONTH ANNUAL RATE NO HOURS OF OPERATION, YEAR ROUND MIDNIGHT SNACK SHOP Jul - Sep SQ. FOOTAGE RENT/ MONTH ANNUAL RATE@ $5/sq. ft. OPEN AFTER MIDNIGHT Jul - Sep SQ. FOOTAGE AMT PAID @ $2/SQ. FT. AMT PAID @ $1/SQ. FT. SQ. FOOTAGE RENT/ SF/MONTHANNUAL RATE Oct - June Oct - June AMT PAID @ $1/SQ. FT. ANNUAL RATE AMT PAID @ $1/SQ. FT. ANNUAL RATE SQ. FOOTAGE SQ. FOOTAGE RENT/ SF/MONTH TOTAL 2 YEARS YEAR 1 2 YEARS YEAR 1 YEAR 1 2 YEARS RENT/ SF/MONTH RENT/ MONTH ANNUAL RATE RENT/ MONTH RENT/ MONTH ANNUAL RATE ANNUAL RATE 190 TEMPORARY PIER PLAZA AMT PAID @ $1.50/SQ. FT. RENT RENT RENT RENT DIFFERENCE % INCREASE RATE RENT/ BASED ON BASED ON ANNUAL RENT/ BASED ON BASED ON ANNUAL DIFF.OVER 2 YRS. SF/MO. YR. ROUND INCREASE RATE SF/MO. YR. ROUND INCREASE RATE BAJA SHARKEEZ 360 540.00 6,480.00 360 5.67 2,041.20 24,494.40 18,014.40 278.00%4.17 2.09 3.59 15,487.20 15,487.20 5.67 24,494.40 24,494.40 BREWS HALL 986 1,479.00 17,748.00 986 5.67 5,590.62 67,087.44 49,339.44 278.00%4.17 2.09 3.59 42,417.72 42,417.72 5.67 67,087.44 67,087.44 CAFÉ BONAPARTE 120 180.00 2,160.00 120 5.67 680.40 8,164.80 6,004.80 278.00%4.17 2.09 3.59 5,162.40 5,162.40 5.67 8,164.80 8,164.80 GREENSPOT RESTAURANT 192 288.00 3,456.00 192 5.67 1,088.64 13,063.68 9,607.68 278.00%4.17 2.09 3.59 8,259.84 8,259.84 5.67 13,063.68 13,063.68 HEAVENLY COUTURE 150 225.00 2,700.00 150 5.67 850.50 10,206.00 7,506.00 278.00%4.17 2.09 3.59 6,453.00 6,453.00 5.67 10,206.00 10,206.00 HENNESSEY'S TAVERN 900 1,350.00 16,200.00 900 5.67 5,103.00 61,236.00 45,036.00 278.00%4.17 2.09 3.59 38,718.00 38,718.00 5.67 61,236.00 61,236.00 PALMILLA'S 390 585.00 7,020.00 390 5.67 2,211.30 26,535.60 19,515.60 278.00%4.17 2.09 3.59 16,777.80 16,777.80 5.67 26,535.60 26,535.60 PATRICK MOLLOY'S 288 432.00 5,184.00 288 5.67 1,632.96 19,595.52 14,411.52 278.00%4.17 2.09 3.59 12,389.76 12,389.76 5.67 19,595.52 19,595.52 PIER SURF 180 270.00 3,240.00 180 5.67 1,020.60 12,247.20 9,007.20 278.00%4.17 2.09 3.59 7,743.60 7,743.60 5.67 12,247.20 12,247.20 PLAYA HERMOSA FISH & OYSTER 1ST 288 432.00 5,184.00 288 5.67 1,632.96 19,595.52 14,411.52 278.00%4.17 2.09 3.59 12,389.76 12,389.76 5.67 19,595.52 19,595.52 PLAYA HERMOSA FISH & OYSTER 2ND 357 535.50 6,426.00 357 5.67 2,024.19 24,290.28 17,864.28 278.00%4.17 2.09 3.59 15,358.14 15,358.14 5.67 24,290.28 24,290.28 SILVIO'S BRAZILIAN BBQ 300 450.00 5,400.00 300 5.67 1,701.00 20,412.00 15,012.00 278.00%4.17 2.09 3.59 12,906.00 12,906.00 5.67 20,412.00 20,412.00 SPYDER II INC.200 300.00 3,600.00 200 5.67 1,134.00 13,608.00 10,008.00 278.00%4.17 2.09 3.59 8,604.00 8,604.00 5.67 13,608.00 13,608.00 TOWER 12 1095 1,642.50 19,710.00 1095 5.67 6,208.65 74,503.80 54,793.80 278.00%4.17 2.09 3.59 47,106.90 47,106.90 5.67 74,503.80 74,503.80 TREASURE CHEST 156 234.00 2,808.00 156 5.67 884.52 10,614.24 7,806.24 278.00%4.17 2.09 3.59 6,711.12 6,711.12 5.67 10,614.24 10,614.24 WATERMAN'S 300 450.00 5,400.00 300 5.67 1,701.00 20,412.00 15,012.00 278.00%4.17 2.09 3.59 12,906.00 12,906.00 5.67 20,412.00 20,412.00 WAVES 247 370.50 4,446.00 247 5.67 1,400.49 16,805.88 12,359.88 278.00%4.17 2.09 3.59 10,625.94 10,625.94 5.67 16,805.88 16,805.88 117,162.00 442,872.36 325,710.36 278.00%280,017.18 442,872.36 RENT RENT RENT RENT TEMPORARY NON-PIER PLAZA AMT PAID @ $1.50/SQ. FT. DIFFERENCE % INCREASE RATE RENT/ BASED ON BASED ON ANNUAL RENT/ BASED ON BASED ON ANNUAL DIFF.OVER 2 YRS. SF/MO. YR. ROUND INCREASE RATE SF/MO. YR. ROUND INCREASE RATE AGAVE AZUL 480 720.00 8,640.00 480 4.83 2,318.40 27,820.80 19,180.80 222.00%3.33 1.67 3.17 18,230.40 18,230.40 4.83 27,820.80 27,820.80 BROTHERS BURRITOS 450 675.00 8,100.00 450 4.83 2,173.50 26,082.00 17,982.00 222.00%3.33 1.67 3.17 17,091.00 17,091.00 4.83 26,082.00 26,082.00 CHEF MELBA'S BISTRO 96 144.00 1,728.00 96 4.83 463.68 5,564.16 3,836.16 222.00%3.33 1.67 3.17 3,646.08 3,646.08 4.83 5,564.16 5,564.16 DECADENCE 372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00%3.33 1.67 3.17 14,128.56 14,128.56 4.83 21,561.12 21,561.12 GOOD STUFF 900 1,350.00 16,200.00 900 4.83 4,347.00 52,164.00 35,964.00 222.00%3.33 1.67 3.17 34,182.00 34,182.00 4.83 52,164.00 52,164.00 HERMOSA BREWING CO.372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00%3.33 1.67 3.17 14,128.56 14,128.56 4.83 21,561.12 21,561.12 LA PLAYITA CAFÉ 480 720.00 8,640.00 480 4.83 2,318.40 27,820.80 19,180.80 222.00%3.33 1.67 3.17 18,230.40 18,230.40 4.83 27,820.80 27,820.80 7 LOBSTER & BEER 792 1,188.00 14,256.00 792 4.83 3,825.36 45,904.32 31,648.32 222.00%3.33 1.67 3.17 30,080.16 30,080.16 4.83 45,904.32 45,904.32 JAPONICA 441 661.50 7,938.00 441 4.83 2,130.03 25,560.36 17,622.36 222.00%3.33 1.67 3.17 16,749.18 16,749.18 4.83 25,560.36 25,560.36 MOBI SCOOTERS 96 144.00 1,728.00 96 4.83 463.68 5,564.16 3,836.16 222.00%3.33 1.67 3.17 3,646.08 3,646.08 4.83 5,564.16 5,564.16 NORTH END BAR & GRILL 849 1,273.50 15,282.00 849 4.83 4,100.67 49,208.04 33,926.04 222.00%3.33 1.67 3.17 32,245.02 32,245.02 4.83 49,208.04 49,208.04 PAISANOS PIZZA 456 684.00 8,208.00 456 4.83 2,202.48 26,429.76 18,221.76 222.00%3.33 1.67 3.17 17,318.88 17,318.88 4.83 26,429.76 26,429.76 PEDONE'S PIZZA 372 558.00 6,696.00 372 4.83 1,796.76 21,561.12 14,865.12 222.00%3.33 1.67 3.17 14,128.56 14,128.56 4.83 21,561.12 21,561.12 ROK SUSHI 420 630.00 7,560.00 420 4.83 2,028.60 24,343.20 16,783.20 222.00%3.33 1.67 3.17 15,951.60 15,951.60 4.83 24,343.20 24,343.20 TACOS EL GOLOSO 91 136.50 1,638.00 91 4.83 439.53 5,274.36 3,636.36 222.00%3.33 1.67 3.17 3,456.18 3,456.18 4.83 5,274.36 5,274.36 THE SPOT 100 150.00 1,800.00 100 4.83 483.00 5,796.00 3,996.00 222.00%3.33 1.67 3.17 3,798.00 3,798.00 4.83 5,796.00 5,796.00 ZANES 588 882.00 10,584.00 588 4.83 2,840.04 34,080.48 23,496.48 222.00%3.33 1.67 3.17 22,332.24 22,332.24 4.83 34,080.48 34,080.48 132,390.00 426,295.80 293,905.80 222.00%279,342.90 426,295.80 RENT RENT RENT RENT TEMPORARY EAST OF HERMOSA AVENUE AMT PAID @ $1.50/SQ. FT. DIFFERENCE % INCREASE RATE RENT/ BASED ON BASED ON ANNUAL RENT/ BASED ON BASED ON ANNUAL DIFF.OVER 2 YRS. SF/MO. YR. ROUND INCREASE RATE SF/MO. YR. ROUND INCREASE RATE BEACH BOUND 36 54.00 648.00 36 4.00 144.00 1,728.00 1,080.00 166.67%2.50 1.25 2.75 1,188.00 1,188.00 4.00 1,728.00 1,728.00 CREME DE LA CREPE 224 336.00 4,032.00 224 4.00 896.00 10,752.00 6,720.00 166.67%2.50 1.25 2.75 7,392.00 7,392.00 4.00 10,752.00 10,752.00 EL TARASCO 280 420.00 5,040.00 280 4.00 1,120.00 13,440.00 8,400.00 166.67%2.50 1.25 2.75 9,240.00 9,240.00 4.00 13,440.00 13,440.00 FUNDAMENTAL COAST 15 22.50 270.00 15 4.00 60.00 720.00 450.00 166.67%2.50 1.25 2.75 495.00 495.00 4.00 720.00 720.00 HOOK & PLOW 660 990.00 11,880.00 660 4.00 2,640.00 31,680.00 19,800.00 166.67%2.50 1.25 2.75 21,780.00 21,780.00 4.00 31,680.00 31,680.00 ROCKEFELLER 301 451.50 5,418.00 301 4.00 1,204.00 14,448.00 9,030.00 166.67%2.50 1.25 2.75 9,933.00 9,933.00 4.00 14,448.00 14,448.00 SOSTA CUCINA 72 108.00 1,296.00 72 4.00 288.00 3,456.00 2,160.00 166.67%2.50 1.25 2.75 2,376.00 2,376.00 4.00 3,456.00 3,456.00 THE SOURCE CAFÉ 620 930.00 11,160.00 620 4.00 2,480.00 29,760.00 18,600.00 166.67%2.50 1.25 2.75 20,460.00 20,460.00 4.00 29,760.00 29,760.00 TWO GUNS ESPRESSO 55 82.50 990.00 55 4.00 220.00 2,640.00 1,650.00 166.67%2.50 1.25 2.75 1,815.00 1,815.00 4.00 2,640.00 2,640.00 UNCORKED 264 396.00 4,752.00 264 4.00 1,056.00 12,672.00 7,920.00 166.67%2.50 1.25 2.75 8,712.00 8,712.00 4.00 12,672.00 12,672.00 45,486.00 121,296.00 75,810.00 166.67%83,391.00 121,296.00 GRAND TOTAL 582,858.96 GRAND TOTAL 1,617,124.79 1,034,265.83 177.45%1,115,503.43 1,617,124.79 ANNUAL RATE ANNUAL RATE SQ. FOOTAGE SQ. FOOTAGE SQ. FOOTAGE SQ. FOOTAGE RENT/ SF/MONTH ANNUAL RATE SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTH ANNUAL RATE 2 YEARS YEAR 1 2 YEARS YEAR 1 2 YEARS YEAR 1 SQ. FOOTAGE RENT/ SF/MONTH RENT/ MONTH ANNUAL RATE RENT/ MONTH ANNUAL RATE 191 Notes: 1 Open after Midnight July - September only 2 Two different fees - Additional Patio not open after Midnight MARKET RATE FEE 3 Open after Midnight July - September only ON PIER PLAZA LOCATIONS $5.67 4 Encroachment rate varies: Jan-Mar $0 (patio closed), Apr-Jun $855 (half of patio), Jul-Sep $1,710 (full patio), Oct-Dec $285 (half of patio-one month)ON NON-PIER PLAZA LOCATIONS $4.83 5 Snack Shop Rate (CC:6/12/07)ON EAST OF HERMOSA AVENUE $4.00 6 Monthly fee based on 884 Sq Ft*$3.32/Sq Ft (Tower 12 rent/sf $6.64 x 50%). The rent will increase as the rent of the underlying lease between Pierside and Tower 12 increases. 7 Owner would like to start on 02/15/2023 *Various hours of operation, not year round 192 Appraisal Open After Midnight Current Rate/sq. ft.Proposed Rate/sq. ft. Permanent Pier Plaza $5.00 $5.67 Appraisal All Closed Before Midnight Current Rate/sq. ft.Proposed Rate/sq. ft.Year 1 2 years Permanent Pier Plaza $2.00 $5.67 $3.84 $5.67 Permanent Snackshop $1.00 $5.67 $3.34 $5.67 Permanent Non Pier Plaza $1.00 $4.83 $2.92 $4.83 Permanent East of Hermosa Ave $1.00 $4.00 $2.50 $4.00 Temporary Pier Plaza $1.50 $5.67 $3.59 $5.67 Temporary Non Pier Plaza $1.50 $4.83 $3.17 $4.83 Temporary East of Hermosa Ave $1.50 $4.00 $2.75 $4.00 Current Guidelines Recommended Increase Over Two Years Summary - Increase over 2 years Current/Market Rental Rate May lease for less than 12 months. Closing time before or after midnight affects rate. Must Lease 12 months. Closing time not considered. Encroachment Fees 193 City of Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 23-0037 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 24, 2023 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 1/19/2023Page 1 of 1 powered by Legistar™194 January 18, 2023 Honorable Mayor and Members Special Meeting of of the Hermosa Beach City Council January 24, 2023 TENTATIVE FUTURE AGENDA ITEMS NO MEETING FEBRUARY 14, 2023 (DARK) FEBRUARY 28, 2023 @ 4:00 PM PLANNING COMMISSION APPLICANT INTERVIEWS FEBRUARY 28, 2023 @ 5:00 PM INITIAL DATE CLOSED SESSION FEBRUARY 28, 2023 @ 6:00 PM PRESENTATIONS RECOGNIZING HERMOSA BEACH RESIDENT AND LA KING’S RETIREE DUSTIN BROWN UPDATE ON BEACH CITIES MENTAL HEALTH EVALUATION TEAM (MET) CITY MANAGER REPORTS Police Chief Update WRITTEN COMMUNICATIONS 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 January 2023 Finance Director Ongoing City Treasurer’s Report and Cash Balance Report for January 2023 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 Planning Commission meeting of February 21, 2023 Community Development Director Ongoing Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of December 6, 2023 Community Resources Manager Ongoing Action Minutes of the Civil Service Board Meeting of December 21, 2022 Human Resources Manager Ongoing Approval of the 2022-2025 Memorandum of Understanding for Police Management Bargaining Group Human Resources Manager Staff Request Nov. 23, 2022 Assembly Bill 361 Compliance City Clerk Ongoing Los Angeles Fire Services and McCormick Ambulance Monthly Report for December 2022 Emergency Management Coordinator Ongoing South Bay Workforce Investment Board Quarterly Summary (2 nd Quarter for FY 2022–23) Chris Cagle Quarterly PUBLIC HEARINGS – 6:30 PM Approval of New Special Events Community Resources Manager Staff Request Dec. 1, 2022 MUNICIPAL MATTERS Resolution Ending the Local Emergency City Attorney Staff Request Jan. 3, 2023 Midyear Budget Review Fiscal Year 2022–23 Finance Director Annual Update and Discussion of Options for Parking Lot D Improvements (CIP 682) – supported by two Councilmembers Environmental Programs Manager Council Direction Jan. 10, 2023 Appointment of Planning Commissioner to term ending June 30, 2023 City Clerk Council Direction Jan. 10, 2023 Retention Schedule Update City Clerk Staff Request Dec. 15, 2022 FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing 195 2 DATE TO BE DETERMINED CITY COUNCIL RETREAT WEDNESDAY, MARCH 1, 2023 STUDY SESSION PLACE HOLDER MARCH 14, 2023 @ 5:00 PM INITIAL DATE CLOSED SESSION MARCH 14, 2023 @ 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 Parks, Recreation and Community Resources Advisory Commission meeting of February 7, 2023 Community Resources Manager Ongoing Action Minutes of the Civil Service Board Meeting of January 18, 2023 Human Resources Manager Ongoing Assembly Bill 361 Compliance City Clerk Ongoing Los Angeles Fire Services and McCormick Ambulance Monthly Report for January 2023 Emergency Management Coordinator Ongoing FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing 196 3 MARCH 28, 2023 @ 5:00 PM INITIAL DATE CLOSED SESSION MARCH 28, 2023 @ 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 February 2023 Finance Director Ongoing City Treasurer’s Report and Cash Balance Report for February 2023 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 Planning Commission meeting of March 21, 2023 Community Development Director Ongoing Recommendation to receive and file the action minutes of the Public Works Commission meeting of January 18, 2023 Public Works Director Ongoing Assembly Bill 361 Compliance City Clerk Ongoing Approval of the Commencement of Special Event Long-term Agreement Negotiations Community Resources Manager Staff Request Dec. 19, 2022 FUTURE AGENDA ITEMS – CITY COUNCIL Future Agenda Items City Manager Ongoing NO MEETING APRIL 11, 2023 (DARK) 197 4 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 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 Administrative Memorandum (AM) on City Branding and 198 5 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 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 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 Consideration of proposal for Extension and Amendment of agreements between the City and Athens Services for solid waste and street sweeping services Initiated by: Council Direction May 10, 2022 Environmental Program Manager 199