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07/27/04
• AGENDA ADJOURNED REGULAR MEETING HERMOSA BEACH CITY COUNCIL Tuesday, July 27, 2004, 6:30 p.m. - Council Chambers, City Hall 1315 Valley Drive MAYOR Art Yoon MAYOR PRO TEM J. R. Reviczky COUNCIL MEMBERS Sam Y. Edgerton Michael Keegan Peter Tucker CALL TO ORDER ROLL CALL INTERVIEW APPLICANTS FOR: CITY CLERK Elaine Doerfling CITY TREASURER John M. Workman CITY MANAGER Stephen R. Burrell CITY ATTORNEY Michael Jenkins BOARD OF APPEALS APPLICATIONS ARE AVAILABLE FOR REVIEW IN THE REGULAR CITY COUNCIL MEETING AGENDA PACKET FOR JULY 27, 2004 UNDER ITEM 8a APPOINTMENTS WILL BE MADE AT THE REGULAR CITY COUNCIL MEETING THAT FOLLOWS THIS INTERVIEW MEETING. ADJOURNMENT 1 CITY CLERK "Good thoughts bear good fruit, bad thoughts bear bad fruit - and mar AGENDA REGULAR MEETING HERMOSA BEACH CITY COUNCIL Tuesday, July 27, 2004 - Council Chambers, City Hall 1315 Valley Drive Regular Session - 7:10 p.m. Closed Session - Immediately following Regular Session MAYOR CITY CLERK Art Yoon . Elaine Doerfling MAYOR PRO TEM CITY TREASURER J. R. Reviczky John M. Workman COUNCIL MEMBERS CITY MANAGER Sam Y. Edgerton Stephen R. Burrell Michael Keegan CITY ATTORNEY Peter Tucker Michael Jenkins All council meetings are open to the public. PLEASE ATTEND. The Council receives a packet with detailed information and recommendations on nearly every agenda item. Complete agenda packets are available for public inspection in the Police Department, Fire Department, Public Library and the Office of the City Clerk. During the meeting, a packet is also available in the Council Chambers foyer. City Council agendas and staff reports are available for your review on the City's web site located at www.hermosabch.org CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL ANNOUNCEMENTS PRESENTATIONS COMMUNITY ENERGY PARTNERSHIP • CLOSED SESSION REPORT FOR MEETING OF JULY 13, 2004: NO REPORTABLE ACTIONS. PUBLIC PARTICIPATION: Although the City Council values your comments, the Brown Act generally prohibits the Council from taking action on any matter not listed on the posted agenda as a business item. 1. ORAL AND WRITTEN COMMUNICATIONS Members of the public wishing to address the City Council on any items within the Council's jurisdiction, or to request the removal of an item from the consent calendar, may do so at this time. Comments on public hearing items are heard only during the public hearing. Comments from the public are limited to three minutes per speaker. Members of the audience may also speak: 1) during discussion of items removed from the Consent Calendar; 2) during Public Hearings; and, 3) during discussion of items appearing under Municipal Matters. The City Council acknowledges receipt of the written communications listed below. No action will be taken on matters raised in written communications. The Council may take action to schedule issues raised in oral and written communications for a future agenda. Citizens with comments regarding City management or departmental operations are requested to submit those comments to the City Manager. 2. CONSENT CALENDAR: The following more routine matters will be acted upon by one vote to approve with the majority consent of the City Council. There will be no separate discussion of these items unless a Council member removes an item from the Consent Calendar. Items removed will be considered under Agenda Item 4, with public comment permitted at that time. (a) Recommendation to approve the following minutes: 1) Minutes of the Adjourned Regular meeting held on July 13, 2004; and, 2) Minutes of the Regular meeting held on July 13, 2004. (b) Recommendation to ratify check register. (c) Recommendation to receive and file Tentative Future Agenda Items. (d) Recommendation to receive and file the June 2004 financial reports: 1) Revenue and expenditure report; 2) City Treasurer's report; and, 3) Investment report. 2 (e) Recommendation to deny the following claim and refer it to the City's Liability Claims Administrator. Memorandum from Personnel Director/Risk Manager Michael Earl dated July 15, 2004. Claimant: Date of Loss: Date Filed: Allegation: Rohrbacher, Bernhard Narro, Victor 02-18-04 07-07-04 False Arrest (f) Recommendation to accept donations of $10,000.00 from Freewheelin Magazine to be used for Sunset Concerts and $183.50 from J.R. Reviczky to be used for the Art Walk event. Memorandum from Finance Director Viki Copeland dated July 19, 2004. Recommendation to receive and file Project Status Report. Memorandum from Public Works Director Richard Morgan dated July 19, 2004. Recommendation to approve request from Beach Cities Christian Fellowship to waive rental fees of $250.00 for the theatre for the 80th Anniversary celebration to be held on September 19, 2004. Memorandum from City Manager Stephen Burrell dated July 21, 2004. (i) Recommendation to authorize the purchase of eighteen (18) Second Chance BulletProof Vests (Body Armor). Memorandum from Police Chief Michael Lavin dated July 5, 2004. a) Recommendation to appropriate $5,235.00 from the CLEEP fund for the purchase of a Command Console to be installed in a police vehicle. Memorandum from Police Chief Michael Lavin dated July 5, 2004. (k) Recommendation to accept the work by Pima Corporation of Los Angeles, California, for CIP Project No. 02-626 Community Center Theater ADA Upgrades as complete; authorize the Mayor to sign the Notice of Completion; authorize staff to release retention payment to Pima Corporation upon receipt of unconditional release from all subcontractors and suppliers; and, authorize staff to release Pima Corporation from the Faithful Performance Bond and the Labor and Materials Bond. Memorandum from Public Works Director Richard Morgan dated July 20, 2004. (1) Recommendation to approve the Memorandum of Agreement for Jurisdictions Five and Six of the Santa Monica Bay Beaches Bacteria Total Maximum Daily Load Implementation Plan Development; approve funding contributions to the City of Redondo Beach for the consultant, Camp Dresser & McKee, Inc., to be used for the Implementation Plan Development in the amount of $20,591.00; and, authorize the Mayor to execute and the City Clerk to attest the agreement subject to approval by the City Attorney. Memorandum from Public Works Director Richard Morgan dated July 20, 2004. 3 • (in) Recommendation to receive and file the action minutes of the Planning Commission meeting of July 20, 2004. (n) Recommendation to receive and file Notice of Closed Claims. Memorandum from Personnel Director/Risk Manager Michael Earl dated July 21, 2004. (o) Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of July 6, 2004. (p) Recommendation to advance $45,000 from the Capital Improvement Fund and appropriate that amount to the Bayview Underground District for the agreements with Bond Counsel, Assessment Engineer and Financial Advisor for the proposed Bayview District. Memorandum from City Manager Stephen Burrell dated July 22, 2004. 3. CONSENT ORDINANCES NONE 4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION * Public comments on items removed from the Consent Calendar. 5. PUBLIC HEARINGS - TO COMMENCE AT 7:30 P.M. a. ADOPTION OF UPDATED STRUCTURAL STANDARDS TO THE 2001 EDITIONS OF THE CALIFORNIA BUILDING CODE. Memorandum from Community Development Director Sol Blumenfeld dated July 19, 2004. RECOMMENDATION: Adopt resolution and waive further reading and introduce ordinance amending the City's Building Code to incorporate updated structural standards in the 2001 California Building Standards Code. 6. MUNICIPAL MATTERS a. 2002-03 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) (INCLUDING REPORT FROM INDEPENDENT AUDITOR). Memorandum from Finance Director Viki Copeland dated July 20, 2004. RECOMMENDATION: Receive and file the 2002-03 Comprehensive Annual Financial Report (CAFR), which includes the report from Caporicci, Cropper and Larson, our independent auditors. 4 • • b. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DETERMINING UNPAID ASSESSMENTS IN ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE). Memorandum from Finance Director Viki Copeland dated July 22, 2004. RECOMMENDATION: Adopt resolution. c. RECOMMENDATION TO ESTABLISH CONTRACT WITH THE WHALE RESCUE TEAM ORGANIZATION. Memorandum from Police Chief Michael Lavin dated July 22, 2004. RECOMMENDATION: Authorize the City Manager to establish a contract with the Whale Rescue Team organization to conduct marine mammal rescues on the beaches of Hermosa Beach. d. WORK PLAN FOR THE 2004-05 FISCAL YEAR. Memorandum from City Manager Stephen Burrell dated July 22, 2004. RECOMMENDATION: Review and approve Work Plan. e. RECOMMENDATION TO ADOPT RESOLUTION AUTHORIZING ISSUANCE OF BONDS FOR BEACH DRIVE ASSESSMENT 2004-1. Memorandum from Finance Director Viki Copeland dated July 20, 2004. RECOMMENDATION: Adopt resolution. 7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER a. AB2702 (STEINBERG), HOUSING LAW MANDATE SECOND UNITS. Memorandum from City Manager Stephen Burrell dated July 15, 2004. RECOMMENDATION: That the City Council consider taking a position in opposition to AB2702 (Steinberg) approving a letter and directing staff to track the bill. b. DOWNTOWN RESIDENTS MEETING — WEDNESDAY, AUGUST 4, 2004. Memorandum from City Manager Stephen Burrell dated July 22, 2004. RECOMMENDATION: Receive and file. 8. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL a. VACANCY — BOARDS AND COMMISSIONS — APPOINTMENT TO BOARD OF APPEALS (HOUSING AUTHORITY AND APPEALS BOARD). Memorandum from City Clerk Elaine Doerfling dated July 19, 2004. RECOMMENDATION: Appoint from among the applicants interviewed earlier this evening to fill a vacancy on the Board of Appeals. 5 • • DESIGNATE A VOTING DELEGATE AND ALTERNATE FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE. Memorandum from City Manager Stephen Burrell dated July 14, 2003. 9. OTHER MATTERS - CITY COUNCIL Requests from Council members for possible future agenda items: Recommended Action: 1) Vote by Council whether to discuss this item; 2) refer to staff for a report back on a future agenda; or, 3) resolution of matter by Council action tonight. NONE ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS: 1. MINUTES: Approval of minutes of Closed Session meeting held on July 13, 2004. 2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Property: 552 11th Place, APN: 4187-020-044 Negotiating Parties: Stephen Burrell & Stephen Grossman Under Negotiation: Price & Terms of Payment ADJOURN TO CLOSED SESSION RECONVENE TO OPEN SESSION ORAL ANNOUNCEMENTS ADJOURNMENT 6 • Community Energy Partnership — 7/02/04 Leadership Hermosa Mini Business plan for implementation of the Community Energy Partnership in Hermosa Beach Summary: The Community Energy Partnership is a state funded partnership between the City and the Energy Coalition to promote smart energy practice. This program has helped larger Partner Cities realize an average of $228K in Energy Savings per year. Activities can include municipal energy planning, community energy tune-ups, special events, performance tracking and the PEAK student energy program at Valley School ....all directed and managed by the Coalition and customized to the needs of the partnering City. LHB can assist this program by introducing the program in our community and taking the lead in customizing this program for Hermosa Beach. Action Items for LHB participants: 1. Research / Education: Watch the short video, read the material, check out the website, www.enercwcoalition.orq, or call Ted Flanigan, the Managing Director of the Energy Coalition at 949-701-4646 for more information. 2. Advocacy in City Council: Meet informally with City Council, Commissioners, Ed Foundation members, City Staff Department heads etc... to sell the program. Formal presentation to City Council. 3. City Staff Assistance: Offering the assistance of LHB volunteers will mitigate staff commitments by assisting with program implementation and promotion. 4. Program Implementation & Promotion (over the course of the year) to help the Energy Coalition establish a local presence....through promotion on Adelphia or local publications, identification of key local stakeholders, working with City staff to schedule meetings, facilitating introductions.....the Energy Coalition can do all the "Heavy Lifting" 5. Assist with the introduction and implementation of the PEAK program in our schools by formulating a "PEAK Sub -committee" to provide an initial interface between Valley School and the Coalition. This includes Advocacy with the school board. Key Resources Needed: Sample Documentation; Promotional Material; Contacts in the Media, City, Schools, Local Business and Community; Hermosa Energy Use Study from the Energy Coalition; Teacher Curriculum Training; ...other resources as required by the Energy Coalition to implement this program in Hermosa. Financial Budget — 0$ - the entire program is funded by the PUC through March 2006. Involves designating a Team Leader for the City, attending quarterly meetings, Key Milestones and Detailed Timeline: • June 27, 2004 — Kick-off meeting between LHB, Energy Coalition, City Manager and Superintendent of Schools. • July 5, 2004 — Follow up discussions with City Manager, meeting with Mayor. • July 14, 2004 — Presentation to Valley School Principal / PEAK is slated as pilot program for 4th Grade Science Classroom • July 27, 2004 — Presentation to City Council. • August 10, 2004 — Follow up with City Council if necessary, authorization for City Manager to sign M.O.U. • August 17, 2004 — Brainstorming Session between LHB and the Energy Coalition. • August 2004 — Presentation to Chamber of Commerce; Teacher Training begins; Promotion in Beach Reporter and on Cable TV • September 2004 — Completion of Key Contacts Resources for Energy Coalition; PEAK Curriculum initiated at Valley School • October 2004 — Community Energy Tune-ups Commence, First Event, Town Hall Mtg. • November 2004 — January 2005 - ongoing volunteer activities for LHB • February 2005 — Presentation to City Council, formal handoff to Energy Task Force. • 1 Community Energy Partnership — 7/02/04 Projected Results / Impact for Hermosa Beach: • Tens of Thousands of dollars in Energy Savings for Hermosa residents, businesses, schools and government....has potential to attract new businesses. • Hermosa School kids who are educated and prepared to deal with the limited energy resources of the 21st Century. These kids will teach parents and have the largest impact. • Educated residents, small business owners and local government. • Safer homes and small businesses. Better profits for local business. • Fun and Recognition for LHB. • • Community Energy Partnership SAMPLE MEMORANDUM OF UNDERSTANDING between THE ENERGY COALITION and THE CITY OF --- Date --- This Memorandum of Understanding between the City of and The Energy Coalition (the Facilitating Partner of the Community Energy Partnership with up to ten Southern California Cities and Utilities Partners Southern California Edison and Southern California Gas) is the beginning of a promising energy efficiency partnership. Its purpose is to forge effective strategies and programs to foster smart energy management in [ fill with city name ] and to provide a means for the City to chart its sustainable energy future. This Memorandum of Understanding prepares parties for the Community Energy Partnership and its specialized funding in the Southern California cities of Irvine, Santa Monica, Palm Desert, Moreno Valley, Brea, Cathedral City, Corona, San Bernardino, and Santa Clarita. The cities understand the value of the Community Energy Partnership to create short -mid term energy (kWh), capacity (kW), natural gas savings (therms), and dollar savings, and to shape a secure and healthy energy future. By participating in the Community Energy Partnership, The Energy Coalition will work with Southern California Edison and Southern California Gas to catalyze, facilitate, and manage a campaign for energy efficiency services in [fill with city] that have the potential to save millions of dollars over time. Special emphasis will be placed on providing energy and dollar -saving measures for residents and businesses most in need of efficiency services and who have been underserved by traditional utility -driven, energy efficiency programs. Background The Community Energy Partnership is an ongoing demonstration project of a statewide model for the delivery of energy efficiency services in California. The Two Cities Project 1 • • (also known as the Regional Energy Efficiency Initiative) was operational in Irvine and Santa Monica from 1999 — 2002 and prepared the path for its expansion to the Six Cities Energy Project in 2002 — 2003, a "third party initiative" funded by the California Public Utilities Commission. The Community Energy Partnership expands the project to up to ten Southern California cities with an aggregate population of approximately 1,000,000. By targeting neighborhoods for specially bundled services, The Energy Coalition creates critical masses of activities that lead to synergies in service delivery for traditionally "hard -to -reach" power consumers such as low -moderate income residents, senior citizens, small businesses, school districts, and municipal facilities creating both millions of dollars of community savings and building an awareness and sense of community responsibility for local energy use. *** This Memorandum of Understanding defines the roles of the City of ---- and The Energy Coalition for the years 2004 and 2005 and sets the stage for effective partnership: City Responsibilities Council Resolution: The City of ---- staff will develop a staff report for a council resolution authorizing the City Manager to sign this Memorandum of Understanding for participation in the Community Energy Partnership. Staff will brief the Council about the project mechanisms and its potential for community benefit. The resolution will authorize the ongoing support and in-kind services necessary to enable and empower the Community Energy Partnership to meet or exceed its stated goals. Team Leader: The City of will appoint a senior staff member to serve as project liaison (known as a "Team Leader") for the Community Energy Partnership for the two- year project. The Team Leader will play a prominent role in representing the project within the City and coordinating project activities within the City. He or she will engage in routine communications with the other partner cities. All Team Leaders will participate in a two-day strategic planning forum at the onset of the project. Thereafter, Team Leaders or their assigned delegates, will participate in quarterly meetings with other partner cities throughout the project period and its final evaluation. The level of effort for this official is expected to be less than 10% full-time equivalent. Staff Support: The City of ---- will provide a minimum of two staff to support the designated Team Leader such that the City a) is represented at all quarterly Team Leaders meetings and other special meetings, and b) provides sufficient support to garner the full benefit of the Community Energy Partnership for the City of [ ]. The combined level of effort for these key positions is expected to be less than 10% full-time equivalent. Local Presence: The City Council Resolution will authorize the City to assist The Energy Coalition in effectively establishing a credible "presence" for the Community Energy 2 • • Partnership within the City. This may include providing desk space for project staff at City Hall, enabling use of conference rooms, or establishing a hotline managed by the Coalition for interested participants. Project Promotion: Given the City's strong position within the community, it will be responsible for collaborative project promotion throughout the project tenure. This will include lending the City's good name and logo for project promotional materials, introducing Community Energy Partnership staff and management to key local stakeholders, linking the project with appropriate media outlets and connections, helping to identify credible implementation contractors, and highlighting other opportunities that will support the project's goals. In particular, the City will assist with effective program co -marketing and providing key linkages for success. Coalition Responsibilities Project Management: The Energy Coalition bears primary responsibility for project management throughout the term of the project. While urging local participation, the Coalition will bear responsibility to implement viable program plans with attractive offerings for residents and businesses within the City. The Coalition will assure ongoing program refinement and activities to maintain program visibility within the community. Administrative Services: The Energy Coalition will serve as the Community Energy Partnership administrator. The Coalition will maintain project fiduciary responsibility to hold and disburse project funds from a specially arranged trust account. The Energy Coalition will pay all subcontractors and track financials for the Community Energy Partnership Executive Committee to assure that funds are carefully allocated and in full compliance with the protocols for the program as set forth by the California Public Utilities Commission. Professional Support Services: The Energy Coalition will support the City of [ and its energy efficiency initiatives using The Energy Coalition's technical support services. These include seasoned municipal energy planners, program designers, teachers and educators, marketing and communications firms, and a cadre of engineering firms, each of which can be marshaled as needed to enact program savings and results. Tailoring Programs for the Community: At the onset of the project, Coalition staff will develop customized sets of efficiency activities in each city. These will guide the delivery of a local "efficiency campaign" that is designed, launched, and refined for maximum benefit. The Coalition will be responsible for a) the comprehensive communications and outreach campaign required, and b) the comprehensive operations_required to foster effective community organizing and responsibility around energy issues. PEAK Student Energy Actions: Also at the onset of the project, Coalition staff will work with City officials to determine the opportunities for launching PEAK Student Energy Actions in the City. PEAK serves as an effective core activity for the Community Energy 3 Partnership. The Coalition is responsible for teacher trainings, provision of curricula, simulation software, etc, as well as supporting the program throughout the project tenure with contests, tool kits, special events, fundraisers, field trips, and summer programs. Municipal Energy Planning: Throughout the Community Energy Partnership, The Energy Coalition will work with the City of [ ] to develop and/or refine the City's Energy Master Plan, placing special emphasis on energy efficiency priorities and programs that serve the spectrum of energy usages in the City. This document will be a road map for energy efficiency activities in the short term, and will outline the project and will provide a ten-year plan for the City's overall smart energy management. Community Efficiency Tune -Ups: The Energy Coalition will bear primary responsibility the provision of hundreds of Community Efficiency Tune -Ups in the City of [ ]. The Tune -Ups in households, apartment complexes, and small businesses demonstrate the Coalition's comprehensive approach to energy and resource management in which electric, peak demand, natural gas, and water savings accrue. The Tune -Ups also highlight the hybrid approach of hard savings coupled with raising awareness about energy use and smart energy management. The Coalition takes full project management responsibility for the Tune -Ups, will select and train installation contractors, provide all program materials, "market" the program to deserving participants, and track results. Special Events: The Energy Coalition will bear primary responsibility for planning, organizing, preparing, and executing all manner of Special Events related to smart energy management in the City of [ fill ]. Special Events may be related to pre - planned community events or may be stand-alone events managed by the Coalition that serve the community organizing function of the Community Energy Partnership project and raise awareness of the value of energy and how to manage its use most wisely. Creating Energy Champions: The Energy Coalition will take the lead in an important program feature, namely the Energy Champions Recognition Program. Working with City officials, the Coalition will publicize key individuals and organizations in the partner cities that have "gone the extra mile" to promote smart energy management. Energy Champions may appear in the papers and at City Council and School Board meetings and will be highlighted as local community leaders taking responsibility for energy use. Performance Tracking: The Energy Coalition will be fully responsible for tracking progress against goals and reporting this information on a quarterly basis to City officials. As stipulated by the contract with the California Public Utilities Commission, the Community Energy Partnership will retain an objective Evaluation, Measurement, and Verification contractor to determine baseline energy consumption and cost data, and to carefully measure short-term, mid-term, and long-term community savings. *** 4 • • The above represents the Memorandum of Understanding between The Energy Coalition and the City of ----. This of [fill with month and year] Ted Flanigan [name ] Managing Director City Manager The Energy Coalition [ ], California 5 RESOLUTION NO: 04- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AUTHORIZING THE CITY TO ENTER INTO A MEMORANDUM OF UNDERSTANDING WITH THE ENERGY COALITION, A CALIFORNIA NON-PROFIT CORPORATION. WHERAS, The Energy Coalition has demonstrated its ability to work with Southern California Municipalities, through its work in the cities of Irvine, Santa Monica, Moreno Valley, Palm Desert, Brea, and West Hollywood to provide energy efficiency programs; and WHERAS, the City of Hermosa Beach enters into the Community Energy Partnership, with the cities of Irvine, Santa Monica, Moreno Valley, Palm Desert, Brea, Cathedral City, Corona, San Bernardino, and Santa Clarita having been nominated by the Coalition to enter into this project; and WHERAS, all City projects will be coordinated with City Council and the City staff liaison to ensure that proposed projects meet the City's intended energy efficiency goals and target traditionally under -served residents, schools, and businesses; and WHERAS, the City of Hermosa Beach enters into this Memorandum of Understanding with the sole obligations listed therein. NOW, THEREFORE, BE IT RESOLVED by the City Council that the City of Hermosa Beach will enter into a Memorandum of Understanding with The Energy Coalition, a registered non-profit corporation in the State of California, which in partnership with its utility partners — Southern California Edison and Southern California Gas — will provide the funding for and implementation of energy efficiency programs and services to under -served areas and populations of the City. PASSED, APPROVED, and ADOPTED this 27th day of July 2004. PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: City Clerk City Attorney • 7AY MINUTES OF THE ADJOURNED REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, July 13, 2004, at the hour of 6:10 P.M. ROLL CALL: Present: Edgerton, Reviczky, Tucker, Mayor Yoon Absent: Keegan (arrived at 6:23 p.m.) INTERVIEWS OF PLANNING COMMISSION APPLICANTS Pursuant to past procedure, the applicants were interviewed separately, apart from the others, with each Councilmember asking one question of each of the applicants. Recognizing that this was a public meeting open to anymember of the public wishing to observe the interviews, each of the applicants waited their turn and entered the room one at a time when called. It was the consensus of the Council to not accept late applications, consistent with recent past policy. Coming forward to proceed with the interview process and respond to the individual Council questions were the following applicants: Ken Allen Richard Koenig Ronald Pizer Robert Pope Michael Cassidy ADJOURNMENT - The Adjourned Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, July 13, 2004 at the hour of 6:50 p.m. to the Regular Meeting scheduled to begin at the hour of 7:10 P.M. City Clerk City Council Minutes 2a(1) 07-13-04 Page 11435 • • (210--"A-'-vt-- 71/4 Vmay MINUTES OF THE REGULAR MEETING OF THE CITY COUNCIL of the City of Hermosa Beach, California, held on Tuesday, July 13, 2004, at the hour of 7:10 p.m. PLEDGE OF ALLEGIANCE - Carla Merriman ROLL CALL: Present: Edgerton, Keegan, Reviczky, Tucker, Mayor Yoon Absent: None ANNOUNCEMENTS - Councilmember Tucker commented on the success of: (1) the Art Walk on June 24, with two more scheduled for July 30 and August 26, said organizers believe the number of artists will double next year, and noted that he and Mayor Pro Tempore Reviczky helped sponsor the event; (2) the Surfin' Hermosa kick-off event at Gallery C on June 25, with over 400 attending, noting that the painted surfboards, currently on display at various locations in town, will be auctioned off at a September 9 event at Sangria, with the proceeds benefiting the Arts Foundation and the Education Foundation; and (3) the Tim Kelly statue fundraiser on June 27, which raised $12,000 for the statue to be cast in bronze, and he thanked those who attended, and who donated door prizes and auction items. Mayor Pro Tempore Reviczky said the 4th of July holiday was much tamer than the two previous years, with no serious injuries or property damage, probably due to the increased fines on alcohol and public awareness on illegal fireworks, along with the efforts of the Hermosa Beach Police Department and L.A. County Sheriff deputies; said that the Ironman event did not cause a problem for the community, and he congratulated everyone for having a good time but acting responsibly. Mayor Yoon said the Hermosa Beach Open would be held July 22-25, shown on national TV, would be the last opportunity before the Olympics to watch these fine athletes, and congratulated Casey and Matt for winning the Del Mar Open. In response to a concern by Mayor Yoon about an ambulance shortage in the Fire Department that might need immediate action, City Manager Burrell said equipment was borrowed back and forth between the beach cities and there was no need to act immediately. He said at the next meeting, the Council will be presented with a list of studies for consideration and if a study regarding the use of private ambulances (which, if approved, would be ready about October) indicated its feasibility, there would-be no need to replace an ambulance and if the ambulance was purchased at this time, the possibility of using private ambulance would be abandoned. PROCLAMATIONS / PRESENTATIONS PARKS AND RECREATION MONTH — JULY 2004 Mayor Yoon presented a proclamation to Parks, Recreation and Community Resources Commissioner Howard Fishman and Chair Christina Hollander and thanked them for their diligent efforts. Chair Hollander thanked the Mayor for the proclamation and praised the City staff for their assistance; said that this had been a City Council Minutes 07-13-04 Page 11436 a(2 • • record year for participation in recreation programs and encouraged the public to get involved, particularly with Friends of Parks. PRESENTATION BY THE CHAMBER OF COMMERCE USA WEEKEND MOVIE Carla Merriman, Executive Director of the Hermosa Beach Chamber of Commerce and Visitors' Bureau, said that the USA cable network was featuring Hermosa Beach on an upcoming Thursday night during the breaks of their "Getting Ready for the Weekend Movie" and played the video for the Council and the audience. She said that the hosts of this show visited several restaurants, bars, and clubs in Hermosa Beach and said it was one of the best beach communities in California that had something for everyone. PUBLIC PARTICIPATION: 1. ORAL AND WRITTEN COMMUNICATIONS There were no written communications this evening. Coming forward at this time to address the Council were: Stephanie Norbera and Annie Seawright — Hermosa Beach, representing the Ironman event held on the Fourth of July, presented a check for $1,018.22 made payable to the Hermosa Beach Education Foundation; Kent Allen accepted on behalf of the foundation; Mr. Duchoff — Hermosa Beach, expressed concern about the possibility of vacating 30th Street; said safety issues regarding the signal at the intersection of Pacific Coast Highway and Longfellow, brought before the Council two years ago with no. action, should be discussed along with the possible closure of 30th Street. Helene Frost — Hermosa Beach, opposed the possible vacation of 30th Street; said at the present time, turning onto Longfellow or Gould after 3 p.m. was dangerous, and that closing the narrow street, along with the increased traffic resulting from the closure, would make it hard for emergency vehicles to access the neighborhood; Robin Rogers — Hermosa Beach, said she was also speaking for some of her neighbors and was worried about the current traffic on Longfellow, a narrow street; thought it was time the City prepared a study; said the City had postponed addressing safety because of upcoming changes which would impact the neighborhood, such as the Skecher facility; said the closure of 30th Street would increase the safety problems on Longfellow and other nearby streets; Louie Conan — Hermosa Beach, a Pacific Coast Highway business owner for 38 years, said the lack of parking enforcement of the two-hour limit was impacting his business because the patrons of three gyms kept the parking places between Pier Avenue and 190th Street filled except for the period from 3 to 7 p.m. (City Manager Burrell said that he would work with Mr. Conan to try to alleviate the problem); and City Council Minutes 07-13-04 Page 11437 1 • Louise Barnett — Hermosa Beach, said customers from Debonair Cleaners and Midas were taking most of the parking spaces on Longfellow; asked if residential permit parking might be a possibility (City Manager Burrell asked Ms. Barnett to call him to discuss possible solutions). 2. CONSENT CALENDAR: Action: To approve the consent calendar recommendations (a) through (r) with the exception of the following items, which were removed for discussion in item 4, but are shown in order for, clarity: (b) Mayor Yoon (f) Reviczky, (h) Tucker, and (q) Tucker. Motion Reviczky, second Tucker. The motion carried by a unanimous vote. RECOMMENDATION TO APPROVE THE FOLLOWING MINUTES: 1) Regular Adjourned meeting held on June 7, 2004; 2) Regular meeting held on June 8, 2004, and 3) Regular meeting held on June 22, 2004. Action: To approve as presented the City Council minutes of the Adjourned Regular meeting of June 7, 2004, and the Regular meetings of June 8 and June 22, 2004. (a) (b) RECOMMENDATION TO RATIFY THE CHECK REGISTER NOS. 37030 THROUGH 37241, AND TO APPROVE THE CANCELLATION OF CHECK NOS. 36548, 37227, 37233 AND 37236 AS RECOMMENDED BY THE CITY TREASURER. This item was removed from the consent calendar by Mayor Yoon for separate discussion later in the meeting, since a check payable to the City of Redondo Beach prompted him to question the status of the Wave dial -a -ride system used by Redondo Beach and Hermosa Beach residents and the proposed beach cities bus route. Action: To ratify the check register, as presented. Motion Yoon, second Edgerton. The motion carried by a unanimous vote. Further Action: To establish a sub -committee comprised of Mayor Yoon and Mayor Pro Tempore Reviczky to discuss transit issues with the City of Manhattan Beach to determine their interest in a beach cities bus route. Motion Edgerton, second Tucker. The motion carried by a unanimous vote. (c) RECOMMENDATION TO RECEIVE AND FILE TENTATIVE FUTURE AGENDA ITEMS. Action: To receive and file tentative future agenda items, as presented. City Council Minutes 07-13-04 Page 11438 • • (d) RECOMMENDATION TO RECEIVE AND FILE NOTICE OF CLOSED CLAIMS. Memorandum from Personnel Director/Risk Manager Michael Earl dated June 24, 2004. Action: To receive and file the notice of closed claims. (e) RECOMMENDATION TO DENY THE FOLLOWING CLAIM AND REFER IT TO THE CITY'S LIABILITY CLAIMS ADMINISTRATOR. Memorandum from Personnel Director/Risk Manager Michael Earl dated June 24, 2004. Claimant: Mercury Insurance as subrogee for Sydney Birenbaum Date of Loss: 03-04-04 Date Filed: 05-04-04 Allegation: Property Damage Action: To deny the subject claim and refer it to the City's Liability Claims Administrator, as recommended by staff. RECOMMENDATION TO DENY THE FOLLOWING CLAIMS AND REFER THEM TO THE CITY'S LIABILITY CLAIMS ADMINISTRATOR. Memorandum from Personnel Director/Risk Manager Michael Earl. (f) Claimant: Boyd, Gina Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Keller, Samuel Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Torres, Joe Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Muelot, Pamela Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Reynolds -Smith, Deborah Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct City Council Minutes 07-13-04 Page 11439 (g) Claimant: Cowan, Richard Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Ornelas, Mary Ann Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Drake, Jerinifer Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: Hon, Joshua Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct Claimant: DeMaegt, James Date of Loss: 01-11-04 Date Filed: 07-01-04 Allegation: Police misconduct This item was removed from the consent calendar by Mayor Pro Tempore Reviczky for separate discussion later in the meeting. Action: To deny the above claims and refer them to the City's Liability Claims Administrator, as recommended by staff. Motion Reviczky, second Tucker. The motion carried by a unanimous vote. RECOMMENDATION TO AUTHORIZE THE PURCHASE OF ONE NEW BLACK AND WHITE PATROL CAR AND FOUR UNMARKED DETECTIVE/ ADMINISTRATIVE CARS. Memorandum from Police Chief Michael Lavin dated July 5, 2004. Supplemental letter from Jim Lissner received July 12, 2004. Action: To authorize the purchase of one new black and white patrol car and four unmarked detective/administrative cars, as recommended by staff. (h) RECOMMENDATION TO ACCEPT DONATIONS OF $8,000 FROM CHEVRON TEXACO TO BE USED FOR CHEVRON SURF CAMP SUPPLIES AND $183.50 FROM PETER TUCKER TO BE USED FOR THE ART WALK EVENT. Memorandum from Finance Director Viki Copeland dated July 6, 2004. City Council Minutes 07-13-04 Page 11440 (I) (i) • • This item was removed from the consent calendar by Councilmember Tucker for separate discussion later in the meeting in order to confirm that fees for staff time would not be required for subsequent art walk events. Mayor Pro Tempore Reviczky acknowledged and thanked Texaco/Chevron for their donation. Action: To accept the following donations: 1- $8,000 from Texaco/Chevron for Chevron Surf Camp supplies; and 2- $183.50 from Peter Tucker for the Art Walk event. • Motion Tucker, second Edgerton. The motion carried by a unanimous vote. RECOMMENDATION TO ADOPT A RESOLUTION APPROVING AMENDMENT NO. 4 TO THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY (ICLFA) JOINT POWERS AGREEMENT RELATING TO PROCESS/PROCEDURES AND ADOPT A RESOLUTION APPOINTING CITY TREASURER JOHN WORKMAN AS A SECOND ALTERNATE BOARD MEMBER. Memorandum from Finance Director Viki Copeland dated July 6, 2004. Action: To approve the staff recommendation to adopt: 1) Resolution No. 04-6346, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING AMENDMENT NO. 4 TO THE JOINT POWERS AGREEMENT CREATING THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY AND PROVIDING OTHER MATTERS PROPERLY RELATING THERETO"; and 2) Resolution No. 04-6347, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, REPEALING RESOLUTION NO. 04-6323 AND AMENDING RESOLUTION NO. 89-5256, NAMING AN ADDITIONAL CITY REPRESENTATIVE TO THE BOARD OF DIRECTORS OF THE INDEPENDENT CITIES LEASE FINANCE AUTHORITY." RECOMMENDATION TO RECEIVE AND FILE THE ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF JUNE 16, 2004. Action: To receive and file the action minutes of the Public Works Commission meeting of June 16, 2004. (k) RECOMMENDATION TO ACCEPT THE WORK BY ATR TECHNOLOGIES, INC. FOR PROJECT NO. 007-04 — CITY HALL ADA IMPROVEMENTS — HANDRAILS; AUTHORIZE THE MAYOR TO SIGN THE NOTICE OF COMPLETION; AND, AUTHORIZE STAFF TO RELEASE PAYMENT TO ATR TECHNOLOGIES, INC. (10% RETAINED FOR 35 DAYS FOLLOWING City Council Minutes 07-13-04 Page 11441 (1) (m) FILING OF NOTICE OF COMPLETION). Memorandum from Public Works Director Richard Morgan dated July 6, 2004. Action: To approve the staff recommendation to: 1) Accept the work by ATR Technologies, Inc. for Project No. 007-04 —City Hall ADA Improvements — Handrails; 2) Authorize the mayor to sign the notice of completion; and 3) Authorize staff to release payment to ATR Technologies, Inc. (10% retained for 35 days following filing of notice of completion). RECOMMENDATION TO AU FHORIZE THE SOLE -SOURCE PURCHASE OF TWO SCOTT AIR-PAK SELF CONTAINED BREATHING APPARATUS (SCBA "BUDDY BREATHER" UPGRADE) WITH CYLINDERS AND WAND FROM ALLSTAR FIRE EQUIPMENT, ARCADIA, CALIFORNIA. Memorandum from Fire Chief Russell Tingley dated July 6, 2004. Action: To authorize the sole -source purchase of two Scott air-pak self- contained breathing apparatus (SCBA "buddy breather" upgrade) with cylinders and wand from Allstar Fire Equipment, Arcadia, California, as recommended by staff. RECOMMENDATION TO APPROVE RENEWAL OF AGREEMENT WITH SOUTH BAY CENTER FOR DISPUTE RESOLUTION IN THE AMOUNT OF $8,000 AND AUTHORIZE THE CITY MANAGER TO EXECUTE THE AGREEMENT EFFECTIVE JULY 1, 2004 THROUGH JUNE 30, 2005. Memorandum from City Manager Stephen Burrell dated July 7, 2004. Action: To approve renewal of agreement with South Bay Center for Dispute Resolution in the amount of $8,000 and authorize the City Manager to execute the agreement effective July 1, 2004 through June 30, 2005, as recommended by staff. (n) RECOMMENDATION TO AUTHORIZE THE PURCHASE AND INSTALLATION OF OFFICE WORKSTATION MODULES AND APPURTENANCES FOR THE FIRE DEPARTMENT FROM JULES SELTZER ASSOCIATES. Memorandum from Fire Chief Russell Tingley dated July 6, 2004. Action: To approve the staff recommendation to: 1) Authorize the purchase and installation of office workstation modules and appurtenances for the Fire Department from Jules Seltzer Associates; and 2) Re -appropriate $18,000 from the 2003/04 budget to the 2004/05 budget. (o) RECOMMENDATION TO AUTHORIZE THE MAYOR TO SIGN A LETTER OF INTENT TO DEVELOP A LOCAL HAZARD MITIGATION PLAN TO BE SUBMITTED FOR STATE REVIEW AND FEMA APPROVAL WRITTEN IN ACCORDANCE WITH SECTION 322 OF THE STAFFORD ACT AND City Council Minutes 07-13-04 Page 11442 (p) (q) i • AUTHORIZE THE HIRING OF A CONSULTANT TO COMPLETE THIS PLAN WITH A QUALIFIED CONSULTANT PROPOSAL INCLUDING SCOPE OF WORK AND COST TO BE OBTAINED AND BROUGHT TO CITY COUNCIL FOR APPROVAL AS A FUTURE AGENDA ITEM. Memorandum from Fire Chief Russell Tingley dated July 6, 2004. Action: To approve the staff recommendation to: 1) Authorize the mayor to sign a letter of intent to develop a local hazard mitigation plan to be submitted for State review and FEMA approval written in accordance with Section 322 of the Stafford Act; and 2) Authorize the hiring of a consultant to complete this plan with a qualified consultant proposal including scope of work and cost to be obtained and brought to City Council for approval as a future agenda item. RECOMMENDATION TO AUTHORIZE THE PURCHASE OF NECESSARY MATERIALS TO CONSTRUCT FIRE STATION APPARATUS BAY STORAGE LOCKERS FROM THE LOWEST BIDDER AND RE - APPROPRIATE $5,950.33 FROM THE 2003/04 BUDGET TO THE 2004/05 BUDGET. Memorandum from Fire Chief Russell Tingley dated July 6, 2004. Action: To authorize the purchase of necessary materials to construct Fire Station apparatus bay storage lockers from the lowest bidder and re - appropriate $5,950.33 from the 2003/04 budget to the 2004/05 budget; as recommended by staff. RECOMMENDATION TO ADOPT RESOLUTION DECLARING INTENT TO VACATE AND ABANDON A PORTION OF 30TH STREET FROM PACIFIC COAST HIGHWAY, APPROXIMATELY 100 FEET TO THE WESTERLY EDGE OF THE SOUTH BAY BMW PROPERTY, NORTH SIDE OF 30TH STREET, INCLUDING CONSTRUCTION OF A CUL-DE-SAC WEST OF THIS PROPERTY LINE ON 30TH STREET AND SET A PUBLIC HEARING FOR TUESDAY, SEPTEMBER 14, 2004. Memorandum from Public Works Director Richard Morgan dated July 7, 2004. Supplemental email from Longfellow Avenue business owner Juli Beck received on July 13, 2004. This item was removed from the consent calendar by Councilmember Tucker for separate discussion later in the meeting. Action: To schedule a public hearing in August for public input and to determine if the Council wants to proceed with the vacation process; with individual notice to the neighbors in addition to the usual noticing. Motion Edgerton, second Tucker. The motion carried by a unanimous vote. (r) RECOMMENDATION TO APPROVE RENEWAL OF THE CITY PROSECUTOR'S CONTRACT EFFECTIVE JULY 1, 2004 THROUGH JUNE 30, 2005. Memorandum from City Manager Stephen Burrell dated July 8, 2004. City Council Minutes 07-13-04 Page 11443 Action: To approve renewal of the City Prosecutor's contract effective July 1, 2004 through June 30, 2005, as recommended by staff. 3. CONSENT ORDINANCES - None 4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION Items 2(b), (f), (h), and (q) were heard at this time but are shown in order for clarity. Public comments on items removed from the consent calendar are shown under the appropriate item. 5. PUBLIC HEARINGS - None 6. MUNICIPAL MATTERS a. 2004 AVP HERMOSA OPEN. Memorandum from Community Resources Department dated July 6, 2004. City Manager Burrell presented the staff report and responded to Council questions. Action: To approve the following AVP requests submitted subsequent to event approval at the May 11, 2004 City Council meeting: • Concert venue change. AVP has replaced the band Sugar Ray with Smash Mouth to provide musical entertainment; • Concert date change from Saturday, July 24 to Friday, July 23; and • Locate a McDonalds trailer on Pier Plaza for food sampling in replacement of the four permitted booths on Friday, July 23. Motion Keegan, second Edgerton. The motion carried by a unanimous vote. Further Action: To approve the following additional AVP requests submitted subsequent to event approval at the May 11, 2004 City Council meeting: • One -day film permit to produce a segment of the television series "Best Damn Sports Show" on Friday, July 23; and • An evening film permit to produce a segment of the television show "DIG" on Friday, July 23' with no fee waivers for the above film permits. Motion Keegan, second Tucker. The motion carried by a unanimous vote. b. SUNSET CONCERT SERIES — LOSS OF SPONSOR, APPROPRIATION OF $10,000 TO COVER THE COST OF THE SERIES. Memorandum from City Manager Stephen Burrell dated July 8, 2004. City Council Minutes 07-13-04 Page 11444 • • City Manager Burrell presented the staff report and responded to Council questions. Action: To approve an appropriation of $10,000 to cover the loss of the sponsorship from the former Hawthorne Savings, now owned by Commercial Capital Bank. Motion Keegan, second Reviczky. The motion carried by a unanimous vote. 7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER — None 8. MISCELLANEOUS ITEMS AND REPORTS - CITY COUNCIL a. CONSIDERATION OF RESOLUTION FROM THE INDEPENDENT CITIES ASSOCIATION (ICA) REGARDING THE LOS ANGELES AIR FORCE BASE. Letter from ICA dated June 1, 2004. Action: To approve the staff recommendation to adopt Resolution No. 04- 6348, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, SUPPORTING THE RETENTION OF THE LOS ANAGELES AIR FORCE BASE." Motion Reviczky, second Tucker. The motion carried by a unanimous vote. b. BOARD/COMMISSION EXPIRATION OF TERMS — APPOINT PLANNING COMMISSION MEMBERS. Memorandum from City Clerk Elaine Doerfling dated July 7, 2004. Action: To re -appoint Kent Allen to the Planning Commission for a four-year term ending June 30, 2008. Nominated by Keegan, and approved by a unanimous vote. Action: To re -appoint Ron Pizer to the Planning Commission for a four-year term ending June 30, 2008. Nominated by Keegan, and approved by a unanimous vote. Action: To appoint Rick Koenig to the Planning Commission for a four-year term ending June 30, 2008. Nominated by Mayor Yoon, and approved. c. BOARD/COMMISSION EXPIRATION OF TERMS — APPOINT CIVIL SERVICE BOARD MEMBERS. Memorandum from City Clerk Elaine Doerfling dated July 7, 2004. Action: To reappoint Michael D'Amico and L. Dwight Taggart to the Civil Service Board for four-year terms ending July 15, 2008. Motion Tucker, second Reviczky. The motion carried by a unanimous vote. City Council Minutes 07-13-04 Page 11445 d. VACANCY — BOARDS AND COMMISSIONS - BOARD OF APPEALS (HOUSING AUTHORITY AND APPEALS BOARD). Memorandum from City Clerk Elaine Doerfling dated July 7, 2004. Action: To schedule a meeting at 6:30 p.m. prior to the regular meeting of July 27, 2004, for the purpose of interviewing applicants for the Board of Appeals vacancy, with appointment to be made at the regular meeting. Motion Reviczky, second Tucker. The motion carried by a unanimous vote. e. CONSIDERATION OF A RESOLUTION CONFIRMING THE APPOINTMENT OF THE DELEGATE AND ALTERNATE TO THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS (COG). Memorandum from City Manager Stephen Burrell dated July 8, 2004. Action: To approve the staff recommendation to adopt Resolution No. 04- 6349, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, CONFIRMING THE APPOINTMENT OF DELEGATE AND ALTERNATE AS OFFICIAL REPRESENTATIVES OF THE CITY TO THE SOUTH BAY CITIES COUNCIL OF GOVERNMENTS." Motion Reviczky, second Tucker. The motion carried by a unanimous vote. 9. OTHER MATTERS - CITY COUNCIL - None ANNOUNCEMENT IN OPEN SESSION OF ITEMS TO BE DISCUSSED IN CLOSED SESSION AS FOLLOWS: 1. MINUTES: Approval of minutes of Closed Session meeting held on May 11, 2004. 2. CONFERENCE WITH REAL PROPERTY NEGOTIATOR Government Code Section 54956.8 Property: APN 4188-028-901 & 4188-028-902 Negotiating Parties: Stephen Burrell and Mar Ventures, Inc. Under Negotiation: Price & Terms of Payment ADJOURN TO CLOSED SESSION — The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, July 13, 2004, at the hour of 8:45 p.m. to a closed session. RECONVENE TO OPEN SESSION — The Closed Session convened on Tuesday, July 13, 2004, at the hour of 8:55 p.m. At the hour of 9:10 p.m., the Closed Session adjourned to the Regular Meeting. ORAL ANNOUNCEMENTS —There were no decisions made requiring a public announcement. City Council Minutes 07-13-04 Page 11446 • • ADJOURNMENT - The Regular Meeting of the City Council of the City of Hermosa Beach adjourned on Tuesday, July 13, 2004, at the hour of 9:11 p.m. to an Adjourned Regular Meeting on July 27, 2004, at 6:30 p.m. for the purpose of conducting Board of Appeals applicant interviews, to be followed by the Regular meeting at 7:10 p.m. k),,,,,e) D • • City Clerk y City Clerk City Council Minutes 07-13-04 Page 11447 vchlist Check Register 07/05/2004 5:41:13PM CITY OF HERMOSA BEACH Page: 1 Bank code : boa Voucher Date Vendor Invoice PO # DescriptionlAccount Amount 37242 7/5/2004 12749 SOUTH BAY REGIONAL 204319 Field Training Officer Class - Brun 001-2101-4312 50.00 Total : 50.00 4243 7/5/2004 06993 TORRANCE MEMORIAL MEDICAL CTR 8611684 Blood Draw/5/28/04 001-2101-4201 35.00 Total : 35.00 37244 7/5/2004 01340 VERIZON CH60677 INSTALLATION OF FAX LINE/PE 15194 001-1203-4304 341.09 Total : 341.09 37245 7/5/2004 00015 VERIZON CALIFORNIA 310 167-1756 Phone Billing/6/04 001-21014304 263.09 310 197-3683 Phone Billing/June 04 715-1206-4201 264.57 110-3302-4304 63.81 001-2101-4304 1,306.98 001-4204-4321 64.59 001-2201-4304 274.17 001-4601-4304 158.38 001-4202-4304 133.80 001-4201-4304 106.61 4110 109-3304-4304 34.54 110-1204-4304 32.97 310 372-6186 Fax Billing/5/17-6/14/04 001-1101-4304 10.24 001-1121-4304 12.87 001-1202-4304 24.00 001-1203-4304 12.89 310 PLO 0346 Circuit Line/June 04 001-2101-4304 41.50 Phone Billing/6/04 001-2101-4304 41.50 Total : 2,846.51 PLO -0347 2b vchlist Check Register Page: 2 07/05/2004 5:41:13PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 6/3/2004 00170 SOUTHERN CALIFORNIA GAS CO. 09790459003 Gas Billing/4-20 to 5-19-04 001-4204-4303 128.30 Total : 128.30 0/44#4#4 6/3/2004 00170 SOUTHERN CALIFORNIA GAS CO. 10210459003 Gas Billing/4-20 to 5-19-04 001-4204-4303 54.62 Total : 54.62 6/16/2004 00170 SOUTHERN CALIFORNIA GAS CO. 11540469001 Gas Billing/4-29 to 5-28-04 001-4204-4303 54.75 Total : 54.75 6/23/2004 00170 SOUTHERN CALIFORNIA GAS CO. 01100457009 Gas Billing/5-7 to 6-8-04 001-4204-4303 44.09 Total : 44.09 6/23/2004 00170 SOUTHERN CALIFORNIA GAS CO. 13910446007 Gas Billing/5-7 to 6-8-04 001-4204-4303 16.81 Total : 16.81 6/23/2004 00170 SOUTHERN CALIFORNIA GAS CO. 14120446001 Gas Billing/5-7 to 6-8-04 001-4204-4303 15.76 • Total : 15.76 10 Vouchers for bank code : boa Bank total : 3,586.93 10 Vouchers in this report Total vouchers : 3,586.93 a Page: 2 vchlist 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Check Register Page: 1 Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37246 7/8/2004 05817 ACCELA INC. PA36292 UPGRADE ACCELA PERMITS S 14170 001-4201-4201 2,096.24 Total : 2,096.24 447 7/8/2004 12482 ACCURINT 1114400-2004 Information Service/6/04 001-2101-4201 23.35 Total : 23.35 37248 7/8/2004 12396 ADELPHIA 821117899 Air Traffic Monitoring/7/1-7/18/04 715-1206-4201 79.47 821117899000 Air Traffic Monitoring/6/19-6/30/04 715-1206-4201 57.33 Total : 136.80 37249 7/8/2004 06421 ALL STAR FIRE EQUIPMENT, INC. 87989 SAFETY EQUIPMENT PURCHAS 14121 001-2201-5402 1,314.16 88066 SELF CONTAINED BREATHING P 14671 001-2201-5402 189.44 Total : 1,503.60 37250 7/8/2004 12697 ALLEN, CHRISTOPHER IVAN 4601-03803 Instructor Payment/8953-8955001,148.40 4601-03803-0 Instructor Payment/9853-8955/04/0 • 001-4601-4221 689.04 Total : 1,837.44 37251 7/8/2004 05179 AT&T 310 937-5959 Long Distance Charges/6/04 110-1204-4304 44.46 Total : 44.46 37252 7/8/2004 04277 BELL, OLIN 4601-03799 Instructor Payment/# 9029-9030 001-4601-4221 554.40 4601-03799-0 Instructor Payment/9029-9030/04/0 001-4601-4221 369.60 Total : 924.00 Page: 1 vchiist Check Register Page: 2 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code boa Voucher Date Vendor Invoice PO # Description/Account Amount 37253 7/8/2004 10260 BLACKMAN, JAMES 95288 Refund Of Overpaid Fees 001-2111 420.00 95289 Refund Of Overpayment Of Fees 001-2111 675.00 • 1,095.00 37254 7/8/2004 12750 BRANDT, CARLY 95508 Class Refund 001-2111 100.00 Total : 100.00 Total : 37255 7/8/2004 05631 CALIFORNIA CHARTER 104513 Transportation/Camp Excursion/6/ 001-4601-4201 841.96 Total : 841.96 37256 7/8/2004 05631 CALIFORNIA CHARTER 05631 Transportation/Summer Camp/6/2E 001-4601-4201 594.04 104514 Transportation/Excursion/6/30/04 001-4601-4201 420.98 Total : 1,015.02 37257 7/8/2004 12230 CALIFORNIA OVERNIGHT 4360628 Express Mail Services/6/04 001-8630-4201 55.40 Total : 55.40 •258 7/8/2004 10838 CANON BUSINESS SOLUTIONS A6863723 Copier Maint/June 04 001-1208-4201 455.10 Total : 455.10 37259 7/8/2004 07611 CARMEN'S UNIFORM 38533 Nomex Pants 001-2201-4314 86.55 Total : 86.55 37260 7/8/2004 04928 COLEN & LEE AS AGENT FOR THE 07/06/2004 Reimburse Liability Trust Acct./J 705-1209-4324 29,510.24 Total : 29,510.24 37261 7/8/2004 04715 COLEN AND LEE 1722 Liability Claims Administration/5/04 705-1209-4201 1,000.00 Page: 2 LI vchlist Check Register Page: 3 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37261 7/8/2004 04715 COLEN AND LEE (Continued) Total : 1,000.00 37262 7/8/2004 05970 COLLINS, DENNIS 4601-03801 Instructor Payment/8712/03/04 001-4601-4221 535.50 Total : 535.50 1,3 7/8/2004 07809 CORPORATE EXPRESS 52970801 Office Supplies/June 04 001-2101-4305 192.80 Total : 192.80 37264 7/8/2004 04689 DATA TICKET, INC. 9856 110-1204-4201 MV Record etrieval/May 04 492.87 Total : 492.87 37265 7/8/2004 00049 DEPARTMENT OF CONSERVATION 4201-15832 Strong Motion Instrumentation/4/03 001-3204 1,222.74 Total : 1,222.74 37266 7/8/2004 03673 DEPARTMENT OF THE CORONER 190 Autopsy Reepor & Photos/3/16/04 Total : 37267 7/8/2004 12536 DIETRICH-POST COMPANY 605835 PAPER E0FOR PLOTTER/6/04 001-45 • 95528 Refund/95528 37268 7/8/2004 12751 DINSDALE, MARY Class11 37269 7/8/2004 00604 DIVE N' SURF 20659 Hydro Tanks Filled/6/04 001-2201-4309 Total : Total : Total : 23.00 23.00 191.16 191.16 136.00 136.00 25.00 25.00 37270 7/8/2004 04394 DIVERSIFIED PHOTO SUPPLY 406026 Flm i & Reprints/6/04 1-4305 F 143.54 Credit For Shortage on Order 001-2101-4305 -41.14 CM C24525 Page: 3 vchlist 07/08/2004 5:01:29PM Check Register CITY OF HERMOSA BEACH Page: 4 Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37270 7/8/2004 04394 DIVERSIFIED PHOTO SUPPLY 37271 7/8/2004 11034 EKLUND'S BLAST OFF • 37272 7/8/2004 08661 EMERG SPEC PHYS MEDICAL 37273 7/8/2004 12752 FASANO ENTERPRISES, INC. 37274 7/8/2004 12746 GALILEO INSTRUMENTS, INC. 37275 7/8/2004 12696 GINOSSI, AIDO 7276 7/8/2004 12311 GREMAUD, MARIE BAPTISTE (Continued) Total : 3750 PKG STRUCTURE STARIWELL C 15521 109-3304-4201 000119744 00014907901 1141-15820 001-063004MM 4601-03802-0 4601-03800-0 37277 7/8/2004 10740 HAZELRIGG RISK MANAGEMENT SERV 2001472 37278 7/8/2004 04108 HAZELRIGG RISK MGMT SERV, INC. 070504 37279 7/8/2004 04642 HOLLYWOOD BOWL 4601-03792 First Aid/Averill 001-1203-4320 First Aid/Garofano/4/04 001-1203-4320 Total : Total : Work Guarantee Refund/5338 001-2110 Mobilemapper System/6/04 001-4202-5402 Total : Total : Instructor Payment/9075-9076 001-4601-4221 Total : Instructor Payment/#8993/03/04 001-4601-4221 Total : Claims Admin Fees/July,Auq & Ser 705-1217-4201 Total : Worker's Comp Claims/7/02/04 705-1217-4324 Total : Hollywood Bowl Excursion/8/21/04 001-4601-4201 102.40 250.00 250.00 175.00 410.00 585.00 1,600.00 1,600.00 1,375.59 1,375.59 2,800.00 2,800.00 294.00 294.00 6,952.50 6,952.50 7,049.64 7,049.64 419.65 Page: 4 vchlist Check Register Page: 5 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37279 7/8/2004 04642 HOLLYWOOD BOWL (Continued) Total : 419.65 37280 7/8/2004 00157 ICMA MEMBERSHIP RENEWALS 205538 Membership Dues/S Burrell 001-1201-4315 01 7/8/2004 12151 JAHNG, CHRISTOPHER Y. 4601-03793 Instructor Payment/8592 001-4601-4221 37282 7/8/2004 12162 JOL DESIGN 6959 T -Shirts For Summer Programs/6/C 001-4601-4308 2,116.29 Total : 2,116.29 37283 7/8/2004 00999 L.A. CO DEPT. OF PUBLIC WORKS AR304670 TRAFFIC SIGNAL MAINT/ARTESI 15301 001-3104-4251 142.37 Total : 142.37 37284 7/8/2004 00151 L.A. CO SHERIFF'S DEPARTMENT 66541 Arrestee Processing Fee/May 04 001-2101-4251 145.84 Total : 145.84 Total : Total : 1,383.20 1,383.20 1,085.00 1,085.00 37285 7/8/2004 10677 LAWRENCE ASSOCIATES June 2004 • 37286 7/8/2004 00167 LEARNED LUMBER B905433 37287 7/8/2004 10115 LOS ANGELES COUNTY AUDITOR 1201-15816 37288 7/8/2004 09428 MCCROSKEY, CHERYL 95581 Staff Augmentation Services/June 140-8626-4201 3,094.00 Total : 3,094.00 Building Supplies/6/04 001-2101-4201 Total : 2004-05 Agency Formation Comm 001-1101-4315 Class Refund 001-2111 Total : 21.31 21.31 881.12 881.12 70.00 Total : 70.00 Page: 5 vchlist Check Register Page: 6 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37289 7/8/2004 07634 MUSIC ROOM PRODUCTIONS HB062504 Interview Tapes Copied/6/25/040092.09 HB062604 Audio Interview Tapes Copied/6/26. 001-2101-4305 86.83 HB062704 Audio Interview Tapes Copied/6/27. 001-2101-4305 60.58 Total : 239.50 37290 7/8/2004 07762 NEOPOST 41683387 Mail Machine Scale/FY 04/05 715-1208-4201 134.20 41683402 Mailing Machine Maint/04/05 715-1208-4201 495.00 Total : 629.20 37291 7/8/2004 08814 RADELL, DANIEL 95350 _ Class Reft.ilid/8851 001-2111 120.00 Total : 120.00 37292 7/8/2004 09811 SIGLER, WILLIAM E. 4601-03797 Instructor Payment/8592 001-4601-4221 560.00 Total : 560.00 57293 7/8/2004 00114 SMART & FINAL IRIS COMPANY 0059224 Program 01-4308es/Summer Camp/E001-46223.14 0062554 Supplies/Prisoner Maint/6/04 001-2101-4306 15.96 0065027 Supplies/Fire Dept/June 04 001-4204-4309 275.57 0066814 Program Supplies/Summer Camp/E 001-4601-4308 178.30 0067003 Summer Camp Program Supplie 001-4601-4308 14.34 66761 Program Supplies/6/04 001-4601-4308 25.55 67632 Supplies/Jail/6/04 001-2101-4306 108.55 Page: 6 vchlist Check Register Page: 7 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37293 7/8/2004 00114 SMART & FINAL IRIS COMPANY (Continued) Total : 841.41 37294 7/8/2004 06211 SMITH OILWELL SERVICES 07/01/04 Oil Well Maint/6/04 001-1101-4201 200.00 Total : 200.00 05 7/8/2004 09737 SOLYMOSI, MARIE 390959 Bees Removal/6/04 110-3302-4201 85.00 Total : 85.00 37296 7/8/2004 10764 SOUTH BAY CENTER FOR 07/01/04 DISPUTE RESOLUTION SERVIC 14708 001-1132-4201 1,700.00 Total : 1,700.00 37297 7/8/2004 00159 SOUTHERN CALIFORNIA EDISON CO. 2-00-989-731 Electric Billing/June 04 105-2601-4303 9,534.85 2-01-414-107 Electric Billing/June 04 001-4204-4303 4,453.53 2-01-414-215 Electric Billing/June 04 001-6101-4303 1,048.69 2-01-414-374 Electric Billing/June 04 105-2601-4303 29.82 2-01-414-399 Electric Billing/June 04 160-3102-4303 68.44 • 2-01-414-428 Electric Billing/June 04 105-2601-4303 231.35 2-01-414-510 Electric Billing/6/04 001-3104-4303 1,020.74 2-08-629-366 Electric Billing/June 04 001-4204-4303 112.63 2-20-128-547 Electric Billing/6/04 001-4204-4303 15.58 2-20-9846369 Electric Billing/June 04 105-2601-4303 64.58 2-23-687-802 Electric Billing/June 04 001-3104-4303 94.12 Page: 7 vchlist Check Register Page: 8 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37297 7/8/2004 00159 SOUTHERN CALIFORNIA EDISON CO. (Continued) 2-23-725-442 Electric Billing/June 04 001-4204-4303 Total : 4,900.51 21,574.84 07298 7/8/2004 06511 SOUTHWEST SERVICE SOLUTIONS 12019 Office Equipment Maint 2004-05 001-1141-4201 25.72 001-1202-4201 87.45 110-1204-4201 89.50 001-1203-4201 59.15 001-1208-4201 12.86 110-3302-4201 92.58 001-4601-4201 378.00 001-4202-4201 210.37 001-2101-4201 811.12 001-2201-4201 243.80 Total : 2,010.55 37299 7/8/2004 05869 T2 SYSTEMS, INC. 17300 7/8/2004 00123 TRIANGLE HARDWARE 37301 7/8/2004 00015 VERIZON CALIFORNIA 104512 CITATION & PERMIT SYSTEM 14275 110-1204-4201 11,717.11 Total : 11,717.11 063004 Hardware Purchase/June 04 105-2601-4309 19.11 715-4206-4309 54.58 001-6101-4309 180.90 001-3104-4309 22.47 001-4204-4309 428.84 110-3302-4305 7.78 001-2021 79.30 001-2022 -79.30 Total : 713.68 310 376-6984 Phone Billing/June 04 ID Page: 8 vchlist Check Register 07/08/2004 5:01:29PM CITY OF HERMOSA BEACH Page: 9 Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37301 7/8/2004 00015 VERIZON CALIFORNIA (Continued) • 310 UHO-3618 37302 7/8/2004 12755 YOUNG, SUSIE 95611 • #1:14####I 7/6/2004 12753 VITROCRISA COMERCIAL 110115781 58 Vouchers for bank code : boa 58 Vouchers in this report 001-1121-4304 14.37 001-1132-4304 27.20 001-1141-4304 9.82 001-1201-4304 34.01 001-1202-4304 64.74 001-1203-4304 82.50 001-1208-4304 4.30 001-2101-4304 335.26 001-2201-4304 628.23 001-4101-4304 132.35 001-4201-4304 108.51 001-4202-4304 281.00 001-4601-4304 185.35 110-1204-4304 61.00 110-3302-4304 54.85 715-1206-4304 148.82 T-1 Circuit/July 04 001-2101-4304 396.31 Total : 2,568.62 Class Refund/6/04 001-2111 60.00 Total : 60.00 8 Trophies/2004 HB Open 001-1101-4319 Total : Bank total : Total vouchers : 1,410.03 1,410.03 118,342.08 118,342.08 Page: 9 II vchlist 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Check Register Page: 1 Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37303 7/15/2004 12185 AFSS SOUTHERN DIVISION July 01,2004 Annual n al Membership Dues/S. Diaz001-4315 50.00 Total : 50.00 • 4601-03816 Instructor Payment/# 8784-8787 37304 7/15/2004 09620 ALLEY, HEATHER H 001-4601-4221 360.00 4601-03816-0 Instructor Payment/8784-8787 001-4601-4221 240.00 Total : 600.00 37305 7/15/2004 12567 ALLIANCE STREETWORKS,INC. 136 STREET IMPROVEMENT CIP-0 15329 301-8185-4201 111,703.70 Total : 111,703.70 37306 , 7/15/2004 00407 AVIATION LOCK & KEY 8962 Broken Key Removed/Police Dept 715-2101-4311 10.00 8970 Door Set/And Rekey/6/04 001-4204-4309 55.74 8978 Master Key Made For Community ( 001-4601-4305 19.49 •Total : 85.23 37307 307 7/15/2004 04277 BELL, OLIN 4601-03799-0 Instructor Payment/6/21-6/25/04 001-4601-4221 588.00 4601-03820-0 Instructor Payment/9032-9031 001-4601-4221 1,764.00 Total : 2,352.00 37308 7/15/2004 09699 BLUE CROSS OF CALIFORNIA , 1202-15859 Refund Paramedic Transport/Ar000 98.70 Total : 98.70 37309 7/15/2004 11518 BOTHE, DENISE 06/15/2004 Planning Commission Transcripti 001-4101-4201 228.00 Total : 228.00 1� Page: 1 vchlist Check Register 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Page: 2 Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37310 7/15/2004 00163 BRAUN LINEN SERVICE 0364852 Prisoner Laundry/6/04 001-2101-4306 61.73 0366893 Prisoner Laundry/6/04 001-2101-4306 69.64 0368796 Prisoner Laundry/June 04 001-2101-4306 58.30 • S0063035 Prisoner Laundry/6/04 001-2101-4306 27.06 S0363291 Prisoner Laundry/6/04 001-2101-4306 54.47 Total : 271.20 37311 7/15/2004 12230 CALIFORNIA OVERNIGHT 4385286 Express Mail/6/04 001-4202-4201 37.96 Total : 37.96 37312 7/15/2004 00016 CALIFORNIA WATER SERVICE 4286211111 Water Billing/May 04 105-2601-4303 2,002.35 001-6101-4303 13,415.97 001-4204-4303 775.88 109-3304-4303 128.17 Total : 16,322.37 37313 7/15/2004 10838 CANON BUSINESS SOLUTIONS A6865463 Copier Maint & Usage/June 04 . 001-1208-4201 37314 7/15/2004 10754 CONRAD, KALEA 95582 Class Refund/8729 001-2111 37315 7/15/2004 07809 CORPORATE EXPRESS 52133677 Office Supplies/May 04 001-1208-4305 112.42 52939127 Office Supplies/June 04 001-1208-4305 12.31 52970794 Office Supplies/6/04 001-1208-4305 269.11 Total : Total : 33.65 33.65 70.00 70.00 15 Page: 2 vchlist Check Register Page: 3 CITY OF HERMOSA BEACH 07/15/2004 5:20:19PM Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37315 7/15/2004 07809 CORPORATE EXPRESS • 37316 37317 37318 37319 S 37320 7/15/2004 00480 7/15/2004 11656 7/15/2004 00154 7/15/2004 00181 7/15/2004 00165 CPCA, CA POLICE CHIEFS ASSOC DELL MARKETING L.P. DEPARTMENT OF ANIMAL CARE & EASY READER (Continued) 53148921 53148937 453055022 A33632680 June 2004 617043 HC04001-0402 Office Supplies/June 04 001-1208-4305 Office Supplies/July 04 001-1208-4305 Total : Annual Membership Dues/04/05 001-2101-4315 Total : 4 Computers Purchased/6/04 715-1206-5402 Shelter Services/June 04 110-3302-4251 Legal Ads 001-1121-4323 Legal Ads/June 04 001-1121-4323 EDDINGS BROTHERS AUTO PARTS Acct 2250 Sm Auto Part Purchase/June 04 Total : Total : Total : 9.28 150.87 553.99 240.00 240.00 4,258.32 4,258.32 346.36 346.36 284.87 1,171.99 1,456.86 Page: 3 iLI vchlist Check Register Page: 4 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37320 7/15/2004 00165 EDDINGS BROTHERS AUTO PARTS (Continued) 715-4202-4311 60.57 715-3102-4311 150.95 715-3104-4311 36.13 715-4206-4309 14.53 715-4206-4311 171.22 • 715-2601-4311 13.02 715-2101-4310 78.02 715-2101-4311 5.82 715-2201-4311 21.31 715-3302-4311 22.17 001-2021 11.71 001-2022 -11.71 Total : 573.74 37321 7/15/2004 11034 EKLUND'S BLAST OFF 3749 Extra Steam Cleaning/June 04 109-3301-4201 2,650.00 3750-2 Steam Cleaning/June 04 109-3301-4201 1,050.00 3779 Steam Cleaning/Fiesta/June 04 109-3301-4201 1,950.00 Total : 5,650.00 322 7/15/2004 12729 ENFACT SOLUTIONS, INC. 1005 ADMIN STORM WATER PROGRA 15774 160-3102-4201 7,140.00 Total : 7,140.00 37323 7/15/2004 12284 FOLEY, ALECIA 1601-03815 0 Instructor Payment/8784-8787 001-4601-4221 140.00 4601-03815-1 Instructor Payment/#8784-8787 03 001-4601-4221 560.00 Total : 700.00 37324 7/15/2004 12696 GINOSSI, ALDO 4601-03802 Instructor Payment/9075-9076 WK 001-4601-4221 1,400.00 Total : 1,400.00 15 Page: 4 vchlist Check Register Page: 5 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37325 7/15/2004 04108 HAZELRIGG RISK MGMT SERV, INC. 07/02/04 Worker's Comp Claims/07/09/04 705-1217-4324 13,196.58 Total : 13,196.58 326 7/15/2004 07547 HDL, COREN AND CONE 1202-15863 Annual CAFR Statistical Section P 001-1202-4201 350.00 Total : 350.00 37327 7/15/2004 03432 HOME DEPOT CREDIT SERVICES 6205404 Landscape Materials/June 04 105-2601-4309 48.39 6205411 Hardware Purchase/June 04 105-2601-4309 235.61 7107478 Hardware Supplies/6/04 105-2601-4309 62.16 Total : 346.16 37328 7/15/2004 05356 HUNTER -KENNEDY & ASSOC. 508 ADMINISTRATION OF RECYCLI 14185 150-3102-4201 179.50 Total : 179.50 37329 7/15/2004 02458 INGLEWOOD WHOLESALE ELECTRIC 197387-00 • 37330 7/15/2004 10820 JENKINS & HOGIN,LLP 37331 7/15/2004 10334 JENSEN, GLENN Electric Supplies/Traffic Signal Bul 105-2601-4309 248.63 001-2021 4.68 001-2022 -4.68 Total : 248.63 11478 Legal Re: Pitchess Motions 001-1131-4201 11479 Legal Re: General/6/04 001-1131-4201 11480 Legal Re: Land Use/03/04 001-1131-4201 2,925.00 2,184.00 700.00 Total : 5,809.00 4601-03814 Instructor Payment/8784-8787 03/0 001-4601-4221 720.00 Page: 5 vchlist Check Register Page: 6 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # DescrlptionlAccount Amount 37331 7/15/2004 10334 JENSEN, GLENN (Continued) 4601-03814 0 Instructor Pmt/9784-8787 001-4601-4221 90.00 Total : 810.00 032 7/15/2004 06293 KINKO'S INC. 101600118693 Registration Supplies Printed 001-4601-4308 32.48 101600118735 Paper Purchase for Camp Flyers 001-4601-4308 40.59 Total : 73.07 37333 7/15/2004 00999 L.A. CO DEPT. OF PUBLIC WORKS AR304397 SEWER PUMP STATION MAINE 14279 160-3102-4251 1,037.22 Total : 1,037.22 37334 7/15/2004 12758 L.A. COUNTY FIRE FIGHTERS ClaimG37864 Refund/Ambulance f un8 Ombulance Transport/Fe0459.06 Total : 459.06 37335 7/15/2004 12759 L.A. UNPLUGGED LA00001 WIFI Network Phase 1 Pmt 1 715-1206-5402 15,130.63 Total : 15,130.63 .336 7/15/2004 12018 LA AREA FIRE CHIEFS ASSOC. 2201-15841 Ann al Membership Dues/Tingley001-4315 200.00 Total : 200.00 37337 7/15/2004 00167 LEARNED LUMBER B903562 Staples & Staple Gun 001-4601-4305 16.71 Total : 16.71 37338 7/15/2004 05072 LINE MASTER 3839 Hydraulic Hose Swivel For Paint T 001-3104-4309 100.78 Total : 100.78 37339 7/15/2004 00077 LOMITA BLUEPRINT SERVICE, INC. 413438 Printing OServices/General Plan/Zon0427.28 ll Page: 6 vchlist Check Register Page: 7 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37339 7/15/2004 00077 LOMITA BLUEPRINT SERVICE, INC. (Continued) 37340 7/15/2004 07250 LYONS, JAMES 1202-15867 • 37341 7/15/2004 12568 MOMENI , PH.D., DAVID May 2004 37342 7/15/2004 00399 NATIONAL FIRE PROTECTION ASSOC 2725933X 37343 7/15/2004 07762 NEOPOST 37344 7/15/2004 10098 NEXTEL COMMUNICATIONS 4345 7/15/2004 04142 OFFICE DEPOT 41756830 269424317-03 878015558000 916143667000 967010175000 37346 7/15/2004 02980 POWER MAINTENANCE CORPORATION 31794 37347 7/15/2004 11539 PROSUM TECHNOLOGY 2003 Assessment Rebate 105-3105 Total : Total : 427.28 24.61 24.61 CONSTRUCTION MANAGEMENT 15330 301-8185-4201 3,550.00 Total : 3,550.00 Subscription Renewal/04/05 001-2201-4315 Total : Postage Meter Rental/7/04-6/05 715-12084201 . CeII Phone Usage/June 04 001-2101-4304 Office Supplies/June 04 001-2201-4305 Office Supplies/June 04 001-4601-4305 Program Supplies/June 04 001-4601-4308 Total : Total : Total : UPS System Service Agreement/7 001-2101-4201 001-1550 001-2201-4201 Total : 677.11 677.11 649.50 649.50 991.37 991.37 89.10 16.50 70.84 176.44 2,248.00 2,810.00 562.00 5,620.00 10900 IT SYSTEM SUPPORT/2003-2004 14725 715-1206-4201 687.50 • Page: 7 vchlist Check Register Page: 8 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37347 7/15/2004 11539 PROSUM TECHNOLOGY (Continued) 11184 IT SYSTEM SUPPORT/2003-2004 14725 715-1206-4201 62.50 11404 Consulting Services/June 04 001-2101-4201 3,750.00 Total : 4,500.00 • 37348 7/15/2004 08364 PVP COMMUNICATIONS,INC. 5321 Motorcycle Kit00580.84 Total : 580.84 37349 7/15/2004 04800 RAY, VINCE 4601-03808 0 Instructor Payment/8809-8818 04/0 001-4601-4221 529.20 4601-03808-0 Instructor Payment/8623 001-4601-4221 2,466.80 4601-03817 0 Instructor Payment/8786-8787 001-4601-4221 848.80 4601-03817-0 Instructor Pmt/8784,8785 001-4601-4221 3,138.20 Total : 6,983.00 37350 7/15/2004 05379 RICHARDS, WATSON & GERSHON 133827 001-1131-4201Legal :Genral/5/04 42.00 • 133828 Legal Re: Stop 011/5/04 001-1131-4201 784.20 133829 Legal Re: Cable TV/5/04 001-1131-4201 63.50 Total : 889.70 37351 7/15/2004 05176 SCOTTISH FIDDLERS OF L.A. 1202-15873 To 2 Replace Check #25017 Lost in I0 50.00 Total : 50.00 37352 7/15/2004 09656 SHRED IT CALIFORNIA 333364691 Shredding -4 Services/7/04095.00 Total : 95.00 Page: 8 is vchlist Check Register Page: 9 07/15/2004 5:20:19PM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37353 7/15/2004 11831 SIR SPEEDY 10476 '354 7/15/2004 00146 SPARKLETTS 8709291-61 37355 7/15/2004 05195 STANDARD CONCRETE PRODUCTS 458401 37356 7/15/2004 01029 STEPHENS, INC., WALTER F. 0055823 0055865 -IN 37357 7/15/2004 09364 TOYS R US WAYNE REGIONAL OFFIC M00039761 07358 7/15/2004 04768 UPTIME COMPUTER SERVICE 18542 37359 7/15/2004 09056 VERIZON INTERNET SOLUTIONS 46268240 57 Vouchers for bank code : boa 57 Vouchers in this report Contract Documents/CIP 00-630/6/ 001-4202-4201 249.02 Total : 249.02 Water Dispenser Rental/June 04 001-2201-4305 3.75 Total : 3.75 Concrete Purchase/June 04 001-3104-4309 287.42 Total : 287.42 Jail Supplies/July 04 001-2101-4306 158.94 Jail, Supplies/July 04 001-2101-4306 33.66 Total : 192.60 Summer Camp Supplies/June 04 001-4601-4308 184.79 Total : 184.79 Printer Maint/7/04 715-1206-4201 619.52 Total : 619.52 Internet Access/July 04 715-1206-4201 893.00 Total : 893.00 Bank total : 219,774.37 Total vouchers : 219,774.37 Page: 9 vchlist Check Register Page: 1 07/20/2004 8:02:08AM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor Invoice PO # Description/Account Amount 37360 7/20/2004 00243 HERMOSA BEACH PAYROLL ACCOUNT 07152004 1 Vouchers for bank code : boa 1 Vouchers in this report • Payroll/7-1 to 7-15-04 001-1103 105-1103 109-1103 110-1103 117-1103 122-1103 145-1103 152-1103 156-1103 160-1103 301-1103 705-1103 715-1103 Total : Bank total : Total vouchers : 364,733.89 7,248.24 1,439.58 37,665.52 892.47 1,067.95 1,444.97 19.10 2,891.52 10,711.17 1,034.93 3,554.78 9,077.39 441,781.51 441,781.51 441,781.51 Page: 1 a► vchlist Check Register Page: 2 07/20/2004 8:02:08AM CITY OF HERMOSA BEACH Bank code : boa Voucher Date Vendor • • Invoice PO # Description/Account Amount "I hereby certify that the demands or claims covered by the checks listed on pages / to ,2•1"/�/ inclusive, of the check register for 75—t%054 are accurate funds are available for payment, and are in conformance to the budget." By Date Finance Director i/Avoy Page: 2 July 8, 2004 s Honorable Mayor and Members of the Hermosa Beach City Council • Regular Meeting of July 13, 2004 9/02.-2/O TENTATIVE FUTURE AGENDA ITEMS '- AU.GUST • 10, 2004 Public Hearing: Vacation of 30t Street Public Works Director Public Hearing: Adoption of Metropolitan Transit Authority (MTA) Local Implementation Report and self Certification Resolution certifying compliance with the Congestion Management Program (CMP) pursuant to Government Code Section 65089. Community Development Director Recommendation to receive and file the action minutes of the Public Works Commission meeting of July 21, 2004. Public Works Director NO MEETING SEPTEMBER 1.4.2g0A04' Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of August 3, 2004. Community Resources Dept. Recommendation to receive and file the action minutes of the Planning Commission meeting of August 17, 2004. Community Development Director Activity Reports — July All Departments 2c July 21, 2004 Honorable Mayor and Members of Regular Meeting of the Hermosa Beach City Council July 27, 2004 REVENUE AND EXPENDITURE REPORTS JUNE 2004 Attached are the preliminary June 2004 Revenue and Expenditure Status Reports; these are not the final reports for the year, since many accounting adjustments must be made in July and August to "close the books." Totals for both revenue and expenditures will change when these entries are made. General Fund revenue is 101.88% received for 100% of the fiscal year. Parking Fund revenue is 102.09% received. General Fund expenditures are 91.96% and Parking Fund expenditures are 96.54% for 100% of the fiscal year. NOTED: Respectfully submitted, Steph ► R.':urrell, Viki Copeland City Manager Finance Director 2dc1> revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 1 001 General Fund Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3101 Current Year Secured 5,123,901.00 0.005,028,455.44 95,445.56 98.14 CurrentYearUnsecured 308,211.00 0.00 311,613.51 3,402.51 101.10 •3102 3103 Prior Year Collections 112,000.00 0.00 140,296.05 -28,296.05 125.26 3106 Supplemental Roll SB813 173,000.00 32,471.85 255,801.54-82,801.54 147.86 3107 Transfer Tax 225,737.00 31,197.90 225,045.99 691.01 99.69 3108 Sales Tax 2,452,841.00 199,540.89 2,468,799.34 -15,958.34 100.65 3109 1/2 Cent Sales Tx Ext 160,000.00 16,640.16 130,334.28 29,665.72 81.46 3110 Cable TV Franchise 220,000.00 0.00 150,444.8869,555.12 68.38 3111 Electric Franchise 60,000.00 0.00 61,042.92 -1,042.92 101.74 3112 Gas Franchise 37,000.00 0.00 49,788.76 -12,788.76 134.56 3113 Refuse Franchise 160,000.00 8,189.12 166,182.95 -6,182.95 103.86 3114 Transient Occupancy Tax 1,201,445.00 0.00 944,947.66 256,497.34 78.65 3115 Business License 682,000.00 86,428.84 693,865.00 -11,865.00 101.74 3120 Utility User Tax 2,237,851.00 185,280.85 2,381,761.29 -143,910.29 106.43 Total Taxes 13,153,986.00 559,749.61 13,008,379.61 145,606.39 98.89 0200 Licenses And Permits 3202 Dog Licenses 9,000.00 188.25 9,218.25 -218.25 102.43 3203 Bicycle Licenses 50.00 0.00 0.00 50.00 0.00 3204 Building Permits 267,400.00 35,671.29 375,015.48 -107,615.48 140.25 3205 Electric Permits 56,000.00 5,886.00 62,159.00 -6,159.00 111.00 3206 Plumbing Permits 40,250.00 4,607.00 40,602.40 -352.40 100.88 3207 Occupancy Permits 7,000.00 500.00 7,350.00 -350.00 105.00 Page: 1 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 2 001 General Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3209 Garage Sales 100.00 9.00 78.00 22.00 78.00 3211 Banner Permits 3,000.00 569.00 3,776.00 -776.00 125.87 212 Animal/Fowl Permits 54.00 0.00 118.25 -64.25 218.98 3213 Animal Redemption Fee 2,200.00 96.00 1,941.00 259.00 88.23 3214 Amplified Sound Permit 1,000.00 270.00 1,170.00 -170.00 117.00 3215 Temporary Sign Permit 912.00 38.00 570.00 342.00 62.50 3217 Open Fire Permit 106.00 265.00 530.00 -424.00 500.00 3218 Auto Repair Permit 4,366.00 0.00 5,402.00 -1,036.00 123.73 3219 Newsrack Permits 1,800.00 0.00 1,935.00 -135.00 107.50 3225 Taxicab Franchise Fees 154,000.00 38,500.00 38,500.00 115,500.00 25.00 Total Licenses And Permits 547,238.00 86,599.54 548,365.38 -1,127.38 100.21 3300 Fines & Forfeitures 3301 Municipal Court Fines Total Fines & Forfeitures 280,000.00 51,137.42 338,063.54 -58,063.54 120.74 280,000.00 51,137.42 338,063.54 -58,063.54 120.74 3400 Use Of Money & Property •3401 Interest Income 50,593.00 -9.30 44,691.39 5,901.61 88.34 3402 Rents & Concessions 300.00 0.00 29.23 270.77 9.74 3403 Pier Revenue 1,300.00 124.25 1,003.18 296.82 77.17 3404 Community Center Leases 64,000.00 4,477.60 64,950.72 -950.72 101.49 3405 Community Center Rentals 45,000.00 9,217.00 74,072.25 -29,072.25 164.61 3406 Community Center Theatre 45,000.00 12,920.59 79,572.59 -34,572.59 176.83 3411 Other Facilities 10,000.00 778.00 12,558.25 -2,558.25 125.58 3412 Tennis Courts 20,000.00 731.25 18,980.08 1,019.92 94.90 3418 Special Events 40,000.00 4,289.00 65,035.00 -25,035.00 162.59 Page: 2 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 3 001 General Fund Account Number 3475 Investment Premium Total Use Of Money & Property Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd -2,004.00 -160.67 -2,337.30 333.30 116.63 274,189.00 32,367.72 358,555.39 -84,366.39 130.77 3500 I ntergovem me nta I/State •3504 In Lieu Off Highway 507.00 0.00 563.08 -56.08 111.06 3505 In Lieu Motor Vehicle 759,946.00 90,354.18 792,158.78 -32,212.78 104.24 3507 Highway Maintenance 1,864.00 0.00 931.84 932.16 49.99 3508 Mandated Costs 729.00 0.00 729.20 -0.20 100.03 3509 Homeowner Property Tax Relief 70,000.00 10,499.14 69,994.32 5.68 99.99 3510 POST 2,500.00 0.00 738.08 1,761.92 29.52 Total Intergovemmental/State 835,546.00 100,853.32 865,115.30 -29,569.30 103.54 3800 Current Service Charges 3801 Residential Inspection 15,000.00 1,900.00 17,750.00 -2,750.00 118.33 3802 Sign Review 2,060.00 309.00 2,678.00 -618.00 130.00 3803 Environmental Impact 2,262.00 377.00 754.00 1,508.00 33.33 3805 Conditional Use Permit Amendment 2,454.00 409.00 2,863.00 -409.00 116.67 3806 Board Of Appeals 191.00 0.00 191.00 0.00 100.00 •3807 Refuse Lien Fees/Consolidated 572.00 0.00 8,292.55 -7,720.55 1449.75 3808 Zone Variance Review 4,720.00 0.00 4,720.00 0.00 100.00 3809 Tentative Map Review 1,175.00 0.00 1,175.00 0.00 100.00 3810 Final Map Review 5,740.00 0.00 3,444.00 2,296.00 60.00 3811 Zone Change/Gen Plan Amendment 3,064.00 0.00 3,064.00 0.00 100.00 3812 Conditional Use Review 20,682.00 4,596.00 28,536.00 -7,854.00 137.98 3813 Pian Check Fees 194,480.00 30,001.52 282,576.87 -88,096.87 145.30 3814 Planning/Zoning Appeal 618.00 0.00 618.00 0.00 100.00 Page: 3 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 4 001 General Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3815 Public Works Services 14,000.00 2,217.00 24,015.47 -10,015.47 171.54 3818 Police Services 1,000.00 462.00 2,369.00 -1,369.00 236.90 819 Jail Services 20,000.00 1,932.00 17,539.00 2,461.00 87.70 3823 Special Event Security/Police 35,000.00 2,886.00 39,258.50 -4,258.50 112.17 3825 Public Notice Posting 51.00 0.00 34.00 17.00 66.67 3827 Library Grounds Maintenance 8,912.00 0.00 8,912.00 0.00 100.00 3831 Street Cut Inspection 44,000.00 3,336.00 43,106.00 894.00 97.97 3833 Recreation Service Charges 5,000.00 646.83 4,998.38 1.62 99.97 3834 Encroachment Permit 120,000.00 4,471.72 117,882.52 2,117.48 98.24 3837 Returned Check Charge 1,000.00 100.00 1,070.00 -70.00 107.00 3838 Sale Of Maps/Publications 150.00 32.00 186.64 -36.64 124.43 3839 Photocopy Charges 700.00 41.70 1,002.53 -302.53 143.22 3840 Ambulance Transport 146,000.00 11,271.78 171,279.56 -25,279.56 117.31 3841 Police Towing 35,000.00 3,468.00 35,598.00 -598.00 101.71 3857 Parking Plan Application 4,700.00 0.00 5,875.00 -1,175.00 125.00 3859 Refuse Lien Fee/B.F.I. 0.00 0.00 637.11 -637.11 0.00 • 3862 Alarm Permit Fee 800.00 38.00 760.00 40.00 95.00 3863 False Alarm Fee 300.00 0.00 0.00 300.00 0.00 3866 Nonconforming Remodels 6,848.00 856.00 10,272.00 -3,424.00 150.00 3867 Precise Development Plans 29,240.00 4,386.00 35,088.00 -5,848.00 120.00 3868 Public Noticing/300 Ft Radius 27,896.00 2,536.00 22,190.00 5,706.00 79.55 3869 2nd Party Response 100.00 0.00 0.00 100.00 0.00 3870 Legal Determination Hearing 1,274.00 0.00 1,274.00 0.00 100.00 3878 Reinspection Fee 448.00 224.00 672.00 -224.00 150.00 3881 Roller Hockey Rink Rental Insurance 0.00 15.00 15.00 -15.00 0.00 Page: 4 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 5 001 General Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3882 Spec Event Security/Fire 1,781.00 335.00 2,784.00 -1,003.00 156.32 3883 Final/Tentative Map Extension 861.00 574.00 1,148.00 -287.00 133.33 3887 Voluntary Lot Merger 408.00 0.00 0.00 408.00 0.00 3888 Planning Commission Appeals 2,532.00 844.00 3,376.00 -844.00 133.33 •3890 300 Ft Radius Noticing/Appeal to CC 3,740.00 0.00 1,956.00 1,784.00 52.30 3893 Contract Recreation Classes 250,000.00 46,784.26 323,120.29 -73,120.29 129.25 3894 Other Recreation Programs 50,000.00 18,501.50 77,214.97 -27,214.97 154.43 3896 Mailing Fee 0.00 0.00 10.06 -10.06 0.00 3897 Admin Fee/TULIP Ins Certificate 350.00 -201.41 748.77 -398.77 213.93 3899 C.U.P. Minor Amendment 236.00 0.00 0.00 236.00 0.00 Total Current Service Charges 1,065,345.00 143,349.90 1,311,055.22 -245,710.22 123.06 3900 Other Revenue 3901 Sale of Real/Personal Property 500.00 0.00 182.58 317.42 36.52 3902 Refunds/Reimb Previous Years 0.00 5,000.00 4,940.73 -4,940.73 0.00 3903 Contributions Non Govt 62,280.00 8,183.50 79,113.50 -16,833.50 127.03 3904General Miscellaneous 4,683.00 1,261.51 73,710.76 -69,027.76 1574.01 403909 Late Fee 202.00 0.00 303.37 -101.37 150.18 3935 Use Of PERS Excess Assets 328,492.00 26,324.29 315,266.04 13,225.96 95.97 3945 In-Sery Firefighter Trng Prog/EI Camino 13,250.00 0.00 12,759.00 491.00 96.29 3955 Operating Transfers In 2,055,101.00 171,226.00 2,055,306.19 -205.19 100.01 Total Other Revenue 2,464,508.00 211,995.30 2,541,582.17 -77,074.17 103.13 Total General Fund 18,620,812.00 1,186,052.81 18,971,116.61 -350,304.61 101.88 Page: 5 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 6 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 105 Lightg/Landscapg Dist Fund Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd fl01 Current Year Secured 447,000.00 0.00 442,286.45 4,713.55 98.95 3 Prior Year Collections 12,000.00 0.00 5,635.60 6,364.40 46.96 3105 Assessment Rebates -3,100.00 -172.27 -1,870.36 -1,229.64 60.33 Total Taxes 455,900.00 -172.27 446,051.69 9,848.31 97.84 3400 Use Of Money & Property 3401 Interest Income 3475 Investment Premium Total Use Of Money & Property 3900 Other Revenue 3955 Operating Transfers In Total Other Revenue Total Lightg/Landscapg Dist Fund • 1,977.00 0.00 2,034.12 -57.12 102.89 -93.00 -6.01 -123.82 30.82 133.14 1,884.00 -6.01 1,910.30 -26.30 101.40 7,781.00 7,781.00 465,565.00 650.00 7,781.00 0.00 100.00 650.00 7,781.00 0.00 100.00 471.72 455,742.99 9,822.01 97.89 Page: 6 Y1 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 7 109 Downtown Enhancement Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 3401 Interest Income 19,363.00 0.00 13,723.53 5,639.47 70.88 3420 Other Interest Income 15,898.00 1,304.95 15,898.29 -0.29 100.00 25 Ground Lease 21,000.00 1,750.00 21,000.00 0.00 100.00 3427 Cell Site License 0.00 0.00 10,000.00 -10,000.00 0.00 3475 Investment Premium -794.00 -29.80 -765.20 -28.80 96.37 Total Use Of Money & Property 55,467.00 3,025.15 59,856.62 -4,389.62 107.91 3800 Current Service Charges 3815 Public Works Services 3,900.00 0.00 2,675.00 1,225.00 68.59 3844 Lot A Revenue 302,000.00 21,683.00 248,222.25 53,777.75 82.19 3846 North Pier Parking Structure Revenue 676,500.00 67,592.00 618,369.75 58,130.25 91.41 Total Current Service Charges 982,400.00 89,275.00 869,267.00 113,133.00 88.48 3900 Other Revenue 3903 Contributions Non Govt 10,000.00 0.00 10,000.00 0.00 100.00 3955 Operating Transfers In 1,285.00 107.00 1,285.00 0.00 100.00 Ill Total Other Revenue 11,285.00 107.00 11,285.00 0.00 100.00 Total Downtown Enhancement Fund 1,049,152.00 92,407.15 940,408.62 108,743.38 89.64 Page: 7 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 8 110 Parking Fund Account Number 3300 Fines & Forfeitures �02 Court Fines/Parking Total Fines & Forfeitures 3400 Use Of Money & Property 3401 Interest Income 3475 Investment Premium Total Use Of Money & Property Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 1,193,135.00 146,603.07 1,269,972.91 -76,837.91 106.44 1,193,135.00 146, 603.07 1,269,972.91 -76,837.91 106.44 8,455.00 0.00 3,883.19 4,571.81 45.93 -338.00 -7.68 -254.35 -83.65 75.25 8,117.00 -7.68 3,628.84 4,488.16 44.71 3800 Current Service Charges 3842 Parking Meters 1,344,584.00 165,210.66 1,322,386.49 22,197.51 98.35 3843 Parking Permits/Annual 300,000.00 15,694.00 306,765.00 -6,765.00 102.26 3844 Daily Parking Permits 700.00 228.00 996.00 -296.00 142.29 3848 Driveway Permits 400.00 70.00 590.00 -190.00 147.50 3849 Guest Permits 1,900.00 319.00 2,106.00 -206.00 110.84 3850 Contractors Permits 12,000.00 1,323.00 12,879.00 -879.00 107.33 •851 Cash Key Revenue 3,000.00 860.00 4,785.00 -1,785.00 159.50 Total Current Service Charges 1,662,584.00 183,704.66 1,650,507.49 12,076.51 99.27 3900 Other Revenue 3955 Operating Transfers In 21,570.00 1,795.00 21,570.00 0.00 100.00 Total Other Revenue 21,570.00 1,795.00 21,570.00 0.00 100.00 Total Parking Fund 2,885,406.00 332,095.05 2,945,679.24 -60,273.24 102.09 Page: 8 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 9 115 State Gas Tax Fund Account Number. Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 3401 Interest Income 94.00 0.00 189.20 -95.20 201.28 3475 Investment Premium -40.00 0.00 -50.35 10.35 125.88 IIITotal Use Of Money & Property 54.00 0.00 138.85 -84.85 257.13 3500 Intergovemmental/State 3501 Section 2106 Allocation 76,257.00 13,198.65 75,632.07' 624.93 99.18 3502 Section 2107 Allocation 158,646.00 28,476.38 161,136.14 -2,490.14 101.57 3503 Section 2107.5 Allocation 4,000.00 0.00 4,000.00 0.00 100.00 3512 Section 2105 (Prop 111) 118,248.00 21,127.70 120,848.77 -2,600.77 102.20 Total Intergovemmental/StateT 357,151.00 62,802.73 361,616.98 -4,465.98 101.25 • Total State Gas Tax Fund 357,205.00 62,802.73 361,755.83 -4,550.83 101.27 Page: 9 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 10 117 AB939 Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 01 Interest Income 10,222.00 0.00 7,463.83 2,758.17 4 7 73.02 75 Investment Premium -378.00 -12.98 -366.90 -11.10 97.06 Total Use Of Money & Property 9,844.00 -12.98 7,096.93 2,747.07 72.09 3800 Current Service Charges 3860 AB939 Surcharge 59,020.00 4,915.79 54,121.99 4,898.01 91.70 Total Current Service Charges 59,020.00. 4,915.79 54,121.99 4,898.01 91.70 3900 Other Revenue 3955 Operating Transfers In 236.00 18.00 236.00 0.00 100.00 Total Other Revenue 236.00 18.00 236.00 0.00 100.00 Total AB939 Fund 69,100.00 4,920.81 61,454.92 7,645.08 88.94 • Page: 10 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 11 121 Prop A Open Space Fund Account Number Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 3600 Intergovemmental/County 3606 LA Co Parks/Pier Renovation 141,723.00 0.00 0.00 141,723.00 0.00 3608 Maintenance Allocation 20,557.00 0.00 0.00 20,557.00 0.00 IIITotal Prop A Open Space Fund 162,280.00 0.00 0.00 162,280.00 0.00 • Page: 11 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 12 122 Tvco Fund Account Number 3400 Use Of Money & Property 401 Interest Income 26 Easement Agreement 3475 Investment Premium Total Tyco Fund Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 44,818.00 0.00 32,941.75 11,876.25 73.50 275,000.00 0.00 275,000.00 0.00 100.00 -1,828.00 -68.39 -1,819.17 -8.83 99.52 317,990.00 -68.39 306,122.58 11,867.42 96.27 Page: 12 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 13 125 Park/Rec Facility Tax Fund Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 3116 Parks & Recreation Facility Tax 7,000.00 0.00 7,000.00 0.00 100.00 Total Taxes 7,000.00 0.00 7,000.00 0.00 100.00 •3400 Use Of Money & Property 3401 Interest Income 4,292.00 0.00 3,172.86 1,119.14 73.92 3475 Investment Premium -182.00 -6.01 -210.20 28.20 115.49 Total Use Of Money & Property 4,110.00 -6.01 2,962.66 1,147.34 72.08 3900 Other Revenue 3910 Park/Recreation In Lieu Fee 41,168.00 25,886.00 60,158.50 -18,990.50 146.13 Total Other Revenue - 41,168.00 25,886.00 60,158.50 -18,990.50 146.13 Total Park/Rec Facility Tax Fund 52,278.00 25,879.99 70,121.16 -17,843.16 134.13 • Page: 13 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 14 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 126 4% Utility Users Tax Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 4 401 Interest Income 770.00 0.00 597.56 172.44 77.61 75 Investment Premium -37.00 -1.04 -60.17 23.17 162.62 Total 4% Utility Users Tax Fund 733.00 -1.04 537.39 195.61 73.31 • Page: 14 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 15 127 Building Improvement Fund Account Number 3400 Use Of Money & Property 3401 Interest Income 3475 Investment Premium • Total Building Improvement Fund Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 109.00 0.00 81.49 27.51 74.76 -5.00 0.00 -4.56 -0.44 91.20 104.00 0.00 76.93 27.07 73.97 Page: 15 revstat.rpt , 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 16 136 Lower Pier Admin Exp Fund Account Number 3900 Other Revenue Adjusted Estimate S25 Special Assessment Admin Fees 2,807.00 Total Lower Pier Admin Exp Fund 2,807.00 0.00 2,806.70 0.30 99.99 Revenues Year-to-date Prct Revenues Balance Rcvd 0.00 2,806.70 0.30 99.99 • Page: 16 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 17 137 Myrtle Dist Admin Exp Fund Account Number 3400 Use Of Money & Property 3401 Interest Income Total Use Of Money & Property •3900 Other Revenue 3925 Special Assessment Admin Fees Total Other Revenue Total Myrtle Dist Admin Exp Fund • Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 139.00 0.00 161.78 -22.78 116.39 139.00 0.00 161.78 -22.78 116.39 9,083.00 0.00 9,083.13 -0.13 100.00 9,083.00 0.00 9,083.13 -0.13 100.00 9,222.00 0.00 9,244.91 -22.91 100.25 Page: 17 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 18 138 Loma Dist Admin Exp Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 U401se Of Money & Property 01 Interest Income 202.00 0.00 205.54 -3.54 101.75 Total Use Of Money & Property 202.00 0.00 205.54 -3.54 101.75 3900 Other Revenue 3925 Special Assessment Admin Fees 9,920.00 0.00 9,919.96 0.04 100.00 Total Other Revenue 9,920.00 0.00 9,919.96 0.04 100.00 Total Loma Dist Admin Exp Fund 10,122.00 0.00 10,125.50 -3.50 100.03 • Page: 18 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 19 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 140 Community Dev Block Grant Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3700 I ntergovemmental/Federal 3715 CDBG Administration 11,609.00 2,601.00 10,497.00 1,112.00 90.42 3720 Americans with Disabilities Act 270,595.00 0.00 249,241.00 21,354.00 92.11 •3722 Community Center Theatre Phase I & II 342,335.00 2,988.00 249,312.00 93,023.00 72.83 Total Community Dev Block Grant 624,539.00 5,589.00 509,050.00 115,489.00 81.51 • Page: 19 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 20 145 Proposition A Fund Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 4 117 Proposition A Transit 265,406.00 48,655.70 266,320.62 -914.62 100.34 21 Subregional Incentives 29,584.00 10,679.46 32,038.38 -2,454.38 108.30 Total Taxes 294,990.00 59,335.16 298,359.00 -3,369.00 101.14 3400 Use Of Money & Property 3401 Interest Income 3,789.00 0.00 3,330.36 458.64 87.90 3475 Investment Premium -152.00 -7.34 -167.92 15.92 110.47 Total Use Of Money & Property 3,637.00 -7.34 3,162.44 474.56 86.95 3800 Current Service Charges 3853 Dial -A -Taxi Program 4,000.00 485.00 4,056.00 -56.00 101.40 3854 Fares, Dial -A -Ride 11,250.00 2,423.64 7,654.93 3,595.07 68.04 3855 Bus Passes 300.00 36.80 346.80 -46.80 115.60 Total Current Service Charges 15,550.00 2,945.44 12,057.73 3,492.27 77.54 IIITotal Proposition A Fund 314,177.00 62,273.26 313,579.17 597.83 99.81 Page: 20 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 21 146 Proposition C Fund Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 3118 Proposition C Local Retum 217,781.00 40,999.50 221,735.24 -3,954.24 101.82 Total Taxes 217,781.00 40,999.50 221,735.24 -3,954.24 101.82 00 Use Of Money & Property 3401 Interest Income 18,877.00 0.00 14,702.25 4,174.75 77.88 3475 Investment Premium -757.00 -30.68 -770.77 13.77 101.82 Total Use Of Money & Property 18,120.00 -30.68 13,931.48 4,188.52 76.88 Total Proposition C Fund 235,901.00 40,968.82 235,666.72 234.28 99.90 • Page: 21 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 22 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 150 Grants Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3500 Intergovernmental/State .29 Wildlife Conservation Grant 324,000.00 0.00 0.00 324,000.00 0.00 58 Beverage Recycling Grant 5,406.00 0.00 5,406.00 0.00 100.00 3562 State Homeland Security Grant Program 25,683.00 0.00 0.00 25,683.00 0.00 Total Intergovernmental/State 355,089.00 0.00 5,406.00 349,683.00 1.52 3700 Intergovernmental/Federal 3738 Local Law Enf Block Grant Prog-LLEBG 11,450.00 0.00 11,450.00 0.00 100.00 3739 Assistance to Firefighters Fed Grant 47,700.00 0.00 47,700.00 0.00 100.00 Total Intergovernmental/Federal 59,150.00 0.00 59,150.00 0.00 100.00 Total Grants Fund 414,239.00 0.00 64,556.00 349,683.00 15.58 • Page: 22 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 23 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 151 Ofc of Traffic Sftv Grant Fund Account Number 3500 Intergovemmental/State Adjusted Estimate 3560 Be Street Smart Hermosa Grant 15,441.00 • • Revenues Year-to-date Prct Revenues Balance Rcvd 0.00 15,439.57 1.43 99.99 Total Ofc of Traffic Sfty Grant Fund 15,441.00 0.00 15,439.57 1.43 99.99 Page: 23 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 24 152 Air Quality Mgmt Dist Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Moneiiiy & Property 01 Interest Income 8.00 0.00 84.87 -76.87 1060.88 75 Investment Premium -3.00 0.00 -9.10 6.10 303.33 Total Use Of Money & Property 5.00 0.00 75.77 -70.77 1515.40 3500 I ntergovemmental/State 3538 AQMD Emission Control AB2766 22,000.00 5,895.91 16,565.93 5,434.07 75.30 Total Intergovemmental/State 22,000.00 5,895.91 16,565.93 5,434.07 75.30 Total Air Quality Mgmt Dist Fund 22,005.00 5,895.91 16,641.70 5,363.30 75.63 • Page: 24 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 25 153 Supp Law Enf Sery Fund (SLESF) Account Number 3100 Taxes Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3135 C.O.P.S. Allocation 100,000.00 0.00 100,000.00 0.00 100.00 Total Taxes 100,000.00 0.00 100,000.00 0.00 100.00 00 Use Of Money & Property 3401 Interest Income 3,076.00 0.00 2,719.67 356.33 88.42 3475 Investment Premium -123.00 -3.87 -133.42 10.42 108.47 Total Use Of Money & Property 2,953.00 -3.87 2,586.25 366.75 87.58 Total Supp Law Enf Sery Fund (SLESF) 102,953.00 -3.87 102,586.25 366.75 99.64 • Page: 25 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 26 154 CA Law Enf Equip Proq Fund (CLEEP) Account Number Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 3400 Use Of Money & Property 401 Interest Income 1,118.00 0.00 786.93 331.07 70.39 75 Investment Premium -46.00 -1.27 -47.76 1.76 103.83 Total CA Law Enf Equip Prog Fund (CLEEP) 1,072.00 -1.27 739.17 332.83 68.95 Page: 26 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 27 156 Taskforce for Reg Autotheft Prev (TRAP) Account Number 3600 Intergovernmental/County 3620 T.R.A.P. Taskforce Reimbursement Total Intergovemmental/County 0900 Other Revenue 3902 Refunds/Reimb Previous Years • Total Other Revenue Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 148,200.00 0.00 57,722.19 90,477.81 38.95 148,200.00 0.00 57,722.19 90,477.81 38.95 0.00 0.00 -97.40 97.40 0.00 0.00 0.00 -97.40 97.40 0.00 Total Taskforce for Reg Autotheft Prev (TRAP) 148,200.00 0.00 57,624.79 90,575.21 38.88 Page: 27 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA-BEACH 6/1/2004 through 6/30/2004 Page: 28 160 Sewer Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property01 Interest Income 43,887.00 0.00 28,011.72 15,875.28 63.83 AN 75 Investment Premium -1,884.00 -45.63 -1,868.47 -15.53 99.18 Total Use Of Money & Property 42,003.00 -45.63 26,143.25 15,859.75 62.24 3500 I ntergovem mental/State 3550 CA Waste Oil Recycling Grant 5,419.00 0.00 4,877.10 541.90 90.00 Total Intergovernmental/State 5,419.00 0.00 4,877.10 541.90 90.00 3600 Intergovernmental/County 3602 Beach Outlet Maintenance 2,500.00 0.00 1,230.00 1,270.00 49.20 Total Intergovemmental/County 2,500.00 0.00 1,230.00 1,270.00 49.20 3800 Current Service Charges 3828 Sewer Connection Fee 7,670.00 2,488.00 14,211.63 -6,541.63 185.29 3829 Sewer Demolition Fee 6,000.00 764.00 10,123.00 -4,123.00 168.72 •32 Sewer Lateral Installation 7,000.00 1,146.00 9,932.00 -2,932.00 141.89 Total Current Service Charges 20,670.00 4,398.00 34,266.63 -13,596.63 165.78 3900 Other Revenue 3917 Adopt -A -Storm Drain Donation 8,896.00 0.00 10,176.00 -1,280.00 114.39 3955 Operating Transfers In 716,622.00 59,679.00 716,622.00 0.00 100.00 Total Other Revenue 725,518.00 59,679.00 726,798.00 -1,280.00 100.18 Total Sewer Fund 796,110.00 64,031.37 793,314.98 2,795.02 99.65 Page: 28 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 29 170 Asset Seizure/Forft Fund Account Number 3300 Fines & Forfeitures Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3304 State Forfeited Funds 200.00 0.00 245.74 -45.74 122.87 3307 Department of Justice Forfeited Funds 1,500.00 0.00 1,806.31 -306.31 120.42 • Total Fines & Forfeitures 1,700.00 0.00 2,052.05 -352.05 120.71 3400 Use Of Money & Property 3401 Interest Income 4,134.00 0.00 2,974.07 1,159.93 71.94 3475 Investment Premium -168.00 -5.14 -163.46 -4.54 97.30 Total Use Of Money & Property 3,966.00 -5.14 2,810.61 1,155.39 70.87 Total Asset Seizure/Forft Fund 5,666.00 -5.14 4,862.66 803.34 85.82 • Page: 29 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 30 180 Fire Protection Fund Account Number 3400 Use Of Money & Property 00Interest Income 5 Investment Premium Total Use Of Money & Property 3900 Other Revenue 3912 Fire Flow Fee Total Other Revenue Total Fire Protection Fund • Adjusted Estimate 11,202.00 -453.00 10,749.00 67,200.00 67,200.00 77,949.00 Revenues Year-to-date Prct Revenues Balance Rcvd 0.00 8,011.15 3,190.85 71.52 -13.72 -438.15 -14.85 96.72 -13.72 7,573.00 3,176.00 70.45 10,767.50 10,767.50 89,201.50 89,201.50 10,753.78 96,774.50 -22,001.50 132.74 -22,001.50 132.74 -18,825.50 124.15 Page: 30 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 31 198 Retirement Stabilization Fund Account Number Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 3400 Use Of Money & Property 3401 Interest Income 0.00 0.00 2,640.40' -2,640.40 0.00 3475 Investment Premium 0.00 -13.02 -102.61 102.61 0.00 • Total Use Of Money & Property 0.00 -13.02 2,537.79 -2,537.79 0.00 3900 Other Revenue 3956 Residual EquityTransfer In 368,470.00 0.00 368,470.00 0.00 100.00 Total Other Revenue 368,470.00 0.00 368,470.00 0.00 100.00 Total Retirement Stabilization Fund 368,470.00 -13.02 371,007.79 -2,537.79 100.69 • Page: 31 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 32 199 Contingency Fund Account Number 3400 Use Of Money & Property �1Interest Income 5 Investment Premium Total Contingency Fund • Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 64,014.00 0.00 48,798.41 15,215.59 76.23 -2,590.00 -91.97 -2,568.37 -21.63 99.16 61,424.00 -91.97 46,230.04 15,193.96 75.26 Page: 32 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 33 301 Capital Improvement Fund Account Number 3400 Use Of Money & Property 3401 Interest Income 3475 Investment Premium •3900 Other Revenue Total Use Of Money & Property 3955 Operating Transfers In Total Other Revenue • Adjusted Estimate Revenues Year-to-date Prot Revenues Balance Rcvd 45,564.00 0.00 36,111.74 9,452.26 79.25 -1,886.00 -64.95 -1,940.87 54.87 102.91 43,678.00 -64.95 34,170.87 9,507.13 78.23 275,000.00 22,913.00 275,000.00 0.00 100.00 275,000.00 22,913.00 275,000.00 0.00 100.00 Total Capital Improvement Fund 318,678.00 22,848.05 309,170.87 9,507.13 97.02 Page: 33 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004. through 6/30/2004 Page: 34 302 Artesia Blvd Relinquishment Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 01 Interest Income41, 12,632.00 0.00 9,342.93 3,289.07 73.96 5 Investment Premium -508.00 -18.25 -506.89 1.11 99.78 Total Artesia Blvd Relinquishment 12,124.00 -18.25 8,836.04 3,287.96 72.88 • Page: 34 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 35 305 Lwr Pier Assmnt Dist Impr Fund Account Number 3400 Use Of Money & Property 3401 Interest Income 3475 Investment Premium • Total Lwr Pier Assmnt Dist Impr Fund Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 1,705.00 0.00 - 1,238.26 466.74 72.63 -69.00 -2.47 -68.71 -0.29 99.58 1,636.00 -2.47 1,169.55 466.45 71.49 Page: 35 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 36 307 Myrtle Util Undrgrnd Impr Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 11 01 Interest Income 135.00 0.00 77.84 57.16 57.66 5 Investment Premium -7.00 0.00 -6.67 -0.33 95.29 Total Myrtle Util Undrgmd Impr Fund 128.00 0.00 71.17 56.83 55.60 • Page: 36 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 37 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 308 Loma Util Undrqrnd Improv Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 3401 Interest Income 2,419.00 0.00 1,822.40 596.60 75.34 3475 Investment Premium -97.00 -3.48 -96.47 -0.53 99.45 • Total Loma Util Undrgmd Improv Fund 2,322.00 -3.48 1,725.93 596.07 74.33 Page: 37 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 38 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 311 Beach Dr Utility Undergrounding Dist Account Number 3900 Other Revenue Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd ill0 Cash Pmts/Util Undergrounding 0.00 12,000.00 12,000.00 -12,000.00 0.00 Total Beach Dr Utility Undergrounding Dist 0.00 12,000.00 12,000.00 -12,000.00 0.00 • Page: 38 revstat.rpt . 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 39 610 Lwr Pier Dist Redemption Fund Account Number Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 3400 Use Of Money & Property 3401 Interest Income 245.00 0.00 287.39 -42.39 117.30 Total Lwr Pier Dist Redemption Fund 245.00 0.00 287.39 -42.39 117.30 • • Page: 39 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 40 617 Myrtle Ave Assessment Fund Account Number 3400 Use Of Money & Property Adjusted Estimate 01 Interest Income 1,027.00 • Revenues Year-to-date Prct Revenues Balance Rcvd 0.00 1,002.77 24.23 97.64 Total Myrtle Ave Assessment Fund 1,027.00 0.00 1,002.77 24.23 97.64 Page: 40 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 41 618 Loma Drive Assessment Fund Account Number 3400 Use Of Money & Property 3401 Interest Income Total Loma Drive Assessment Fund • • Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 978.00 0.00 1,032.69 -54.69 105.59 978.00 0.00 1,032.69 -54.69 105.59 Page: 41 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 42 705 Insurance Fund Account Number 3800 Current Service Charges 080 Insurance Service Charges Total Current Service Charges 3900 Other Revenue Adjusted Estimate 1,412,810.00 1,412,810.00 Revenues 117,736.00 117,736.00 Year-to-date Prct Revenues Balance Rcvd 1,412,810.00 1,412,810.00 0.00 100.00 0.00 100.00 3902 Refunds/Reimb Previous Years 13,658.00 0.00 29,731.35 -16,073.35 217.68 3904 General Miscellaneous 1,225.00 0.00 1,225.00 0.00 100.00 3955 Operating Transfers In 2,552.00 211.00 2,552.00 0.00 100.00 Total Other Revenue 17,435.00 211.00 33,508.35 -16,073.35 192.19 Total Insurance Fund 1,430,245.00 117,947.00 1,446,318.35 -16,073.35 101.12 • Page: 42 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 43 715 Equipment Replacement Fund Account Number 3800 Current Service Charges 3885 Computer/Business Machine Charges 3889 Equipment Replacement Charges • Total Current Service Charges 3900 Other Revenue 3901 Sale of Real/Personal Property 3955 Operating Transfers In Total Other Revenue Total Equipment Replacement Fund Adjusted Estimate Revenues Year-to-date Prct Revenues Balance Rcvd 483,259.00 40,267.00 483,259.00 0.00 100.00 682,652.00 56,858.00 682,252.00 400.00 99.94 1,165,911.00 97,125.00 1,165,511.00 400.00 99.97 10,000.00 483.86 13,507.41 -3,507.41 135.07 67,331.00 9,862.00 67,331.00 0.00 100.00 77,331.00 10,345.86 80,838.41 -3,507.41 104.54 1,243,242.00 107,470.86 1,246, 349.41 -3,107.41 100.25 Grand Total 30,201,547.00 2,154,199.41 29,791,230.89 410,316.11 98.64 Page: 43 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 44 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Account Number Recap Report Adjusted Estimate Revenues Year-to-date Revenues Prct Balance Rcvd 001 General Fund 18,620,812.00 1,186,052.81 18,971,116.61 -350,304.61 101.88 Lightg/Landscapg Dist Fund 465,565.00 471.72 455,742.99 9,822.01 97.89 109 Downtown Enhancement Fund 1,049,152.00 92,407.15 940,408.62 108,743.38 89.64 110 Parking Fund 2,885,406.00 332,095.05 2,945,679.24 -60,273.24 102.09 115 State Gas Tax Fund 357,205.00 62,802.73 361,755.83 -4,550.83 101.27 117 AB939 Fund 69,100.00 4,920.81 61,454.92 7,645.08 88.94 120 County Gas Tax Fund 0.00 0.00 0.00 0.00 0.00 41121 Prop A Open Space Fund 162,280.00 0.00 0.00 162,280.00 0.00 122 Tyco Fund 317,990.00 -68.39 306,122.58 11,867.42 96.27 125 Park/Rec Facility Tax Fund 52,278.00 25,879.99 70,121.16 -17,843.16 134.13 126 4% Utility Users Tax Fund 733.00 -1.04 537.39 195.61 73.31 127 Building Improvement Fund 104.00 0.00 76.93 27.07 73.97 Page: 44 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 45 Account Number Recap Report Adjusted Estimate Revenues Year-to-date Revenues Prct Balance Rcvd 136 Lower Pier Admin Exp Fund 2,807.00 0.00 2,806.70 0.30 99.99 137 Myrtle Dist Admin Exp Fund 9,222.00 0.00 9,244.91 -22.91 100.25 •38 Loma Dist Admin Exp Fund 10,122.00 0.00 10,125.50 -3.50 100.03 140 Community Dev Block Grant 624,539.00 5,589.00 509,050.00 115,489.00 81.51 145 Proposition A Fund 314,177.00 62,273.26 313,579.17 597.83 99.81 146 Proposition C Fund 235,901.00 40,968.82 235,666.72 234.28 99.90 150 Grants Fund 414,239.00 0.00 64,556.00 349,683.00 15.58 151 Ofc of Traffic Sfty Grant Fund 15,441.00 0.00 15,439.57 1.43 99.99 052 Air Quality Mgmt Dist Fund 22,005.00 5,895.91 16,641.70 5,363.30 75.63 153 Supp Law Enf Sery Fund (SLESF) 102,953.00 -3.87 102,586.25 366.75 99.64 154 CA Law Enf Equip Prog Fund (CLEEP) 1,072.00 -1.27 739.17 332.83 68.95 156 Taskforce for Reg Autotheft Prey (TRAP) 148,200.00 0.00 57,624.79 90,575.21 38.88 Page: 45 revstat.rpt 07/21/2004 4:08PM Revenue Status Report Page: 46 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Account Number Recap Report Adjusted Estimate Revenues Year-to-date Revenues Prct Balance Rcvd 160 Sewer Fund 796,110.00 64,031.37 793,314.98 2,795.02 99.65 • Asset Seizure/Forft Fund 5,666.00 -5.14- 4,862.66 803.34 85.82 180 Fire Protection Fund 77,949.00 10,753.78 96,774.50 -18,825.50 124.15 198 Retirement Stabilization Fund 368,470.00 -13.02 371,007.79 -2,537.79 100.69 199 Contingency Fund 61,424.00 -91.97 46,230.04 15,193.96 75.26 301 Capital Improvement Fund 318,678.00 22,848.05 309,170.87 9,507.13 97.02 302 Artesia Blvd Relinquishment 12,124.00 -18.25 8,836.04 3,287.96 72.88 �5 Lwr Pier Assmnt Dist Impr Fund 1,636.00 -2.47 1,169.55 466.45 71.49 I 307 Myrtle Util Undrgmd lmpr Fund 128.00 0.00 71.17 56.83 55.60 i 308 Loma Util Undrgmd Improv Fund 2,322.00 -3.48 1,725.93 596.07 74.33 311 Beach Dr Utility Undergrounding Dist 0.00 12,000.00 12,000.00 -12,000.00 0.00 610 Lwr Pier Dist Redemption Fund 245.00 0.00 287.39 -42.39 117.30 Page: 46 revstat.rpt 07/21/2004 4:08PM Revenue Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 47 Account Number Recap Report Adjusted Estimate Revenues Year-to-date Revenues Prct - Balance Rcvd 617 Myrtle Ave Assessment Fund 1,027.00 0.00 1,002.77 24.23 97.64 618 Loma Drive Assessment Fund 978.00 0.00 1,032.69 -54.69 105.59 •5 Insurance Fund 1,430,245.00 117,947.00 1,446,318.35 -16,073.35 101.12 715 Equipment Replacement Fund 1,243,242.00 107,470.86 1,246,349.41 -3,107.41 100.25 900 Investment Fund 0.00 0.00 • 0.00 0.00 0.00 Grand Total 30,201,547.00 2,154,199.41 29,791,230.89 410,316.11 98.64 • Page: 47 `, expstat.rpt 07/21/2004 4:14PM Expenditure Status Report Page: 1 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 001 General Fund Account Number 1101 City Council 1101-4100 Personal Services 0 1101-4102 Regular Salaries 1101-4111 Accrual Cash In 1101-4112 Part Time/Temporary 1101-4180 Retirement 1101-4188 Employee Benefits 1101-4189 Medicare Benefits Total Personal Services 1101-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 29,652.00 0.00 39,000.00 3,570.00 34,834.00 995.00 108,051.00 2,470.50 0.00 3,250.00 297.46 3,048.08 83.06 9,149.10 29,646.09 342.07 39,063.39 3,573.31 35,824.35 1,002.27 109,451.48 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5.91 -342.07 -63.39 -3.31 -990.35 -7.27 -1,400.48 99.98 0.00 100.16 100.09 102.84 100.73 101.30 1101-4201 Contract Serv/Private 9,680.00 400.00 2,588.47 500.00 6,591.53 31.91 Total Contract Services 9,680.00 400.00 2,588.47 500.00 6,591.53 31.91 1101-4300 Materials/Supplies/Other 1101-4304 Telephone 1101-4305 Office Oper Supplies 1101-4309 Maintenance Materials 1101-4315 Membership 1101-4317 Conference/Training 0 1101-4319 Special Events 1101-4396 Insurance User Charges Total Materials/Supplies/Other Total City Council 1121 City Clerk 1121-4100 Personal Services 1121-4102 Regular Salaries 1121-4111 Accrual Cash In 1121-4112 Part Time/Temporary 175.00 6,000.00 600.00 20,000.00 12,000.00 16,500.00 5,943.00 61,218.00 178,949.00 76,176.00 3,580.00 32,832.00 28.55 1,448.37 0.00 0.00 973.66 0.00 498.00 2,948.58 12,497.68 6,347.76 1,150.36 2,304.00 65.70 6,787.00 0.00 18,337.36 2,882.44 16,213.06 5,943.00 50,228.56 162,268.51 76,098.90 1,500.34 32,832.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 500.00 0.00 0.00 0.00 109.30 -787.00 600.00 1,662.64 9,117.56 286.94 0.00 10,989.44 16,180.49 77.10 2,079.66 0.00 37.54 113.12 0.00 91.69 24.02 98.26 100.00 82.05 90.96 99.90 41.91 100.00 Page: 1 expstat.rpt 07/21/2004. 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 2 001 General Fund Account Number 1121-4180 Retirement 1121-4188 Employee Benefits mil 121-4189 Medicare Benefits Total Personal Services 1121-4200 Contract Services 1121-4201 Contract Serv/Private 1121-4251 Contract Services/Govt Total Contract Services 1121-4300 Materials/Supplies/Other 1121-4304 Telephone 1121-4305 Office Oper Supplies 1121-4315 Membership 1121-4317 Conference/Training 1121-4323 Public Noticing 1121-4390 Computer Replacement Chrgs 1121-4396 Insurance User Charges Total Materials/Supplies/Other 1121-5400 Equipment/Fumiture •1121-5401 Equip -Less Than $1,000 Total Equipment/Fumiture Total City Clerk 1131 City Attomey 1131-4200 Contract Services 1131-4201 Contract Serv/Private Total City Attomey 1132 City Prosecutor 1132-4100 Personal Services Adjusted Appropriation 7,777.00 17,422.00 1,581.00 139,368.00 6,544.00 50,000.00 56,544.00 300.00 5,500.00 405.00 4,650.00 10,500.00 18,676.00 4,831.00 44,862.00 700.00 700.00 241,474.00 180,000.00 180,000.00 Year-to-date Year-to-date Expenditures Expenditures Encumbrances 648.06 1,527.13 142.29 12,119.60 216.50 0.00 216.50 68.64 270.33 0.00 0.00 4,172.71 1,560.00 398.00 6,469.68 0.00 0.00 18,805.78 15,002.93 15,002.93 7,771.15 17,924.10 1,602.87 137,729.36 4,208.25 25,368.62 29,576.87 303.35 4,564.32 380.00 1,466.26 12,442.07 18,676.00 4,831.00 42,663.00 212.18 212.18 210,181.41 160,481.07 160,481.07 Prct Balance Used 0.00 5.85 99.92 0.00 -502.10 102.88 0.00 -21.87 101.38 0.00 1,638.64 98.82 0.00 2,335.75 64.31 0.00 24,631.38 50.74 0.00 26,967.13 52.31 0.00 -3.35 101.12 0.00 935.68 82.99 0.00 25.00 93.83 0.00 3,183.74 31.53 0.00 -1,942.07 118.50 0.00 0.00 100.00 0.00 0.00 100.00 0.00 2,199.00 95.10 0.00 487.82 30.31 0.00 487.82 30.31 0.00 31,292.59 87.04 0.00 0.00 19,518.93 89.16 19,518.93 89.16 Page: 2 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 3 001 General Fund Account Number 1132-4188 Employee Benefits Total Personal Services 1132-4200 Contract Services •1132-4201 Contract Serv/Private Total Contract Services 1132-4300 Materials/Supplies/Other 1132-4304 Telephone 1132-4305 Office Oper Supplies 1132-4315 Membership 1132-4317 Conference/Training Total Materials/Supplies/Other Total City Prosecutor 1141 City Treasurer 1141-4100 Personal Services 1141-4102 1141-4106 1141-4111 1141-4112 1141-4180 141-4188 1141-4189 Regular Salaries Regular Overtime Accrual Cash In Part Time/Temporary Retirement Employee Benefits Medicare Benefits Total Personal Services 1141-4200 Contract Services 1141-4201 Contract Serv/Private Total Contract Services 1141-4300 Materials/Supplies/Other Adjusted Appropriation 4,479.00 4,479.00 143,400.00 143,400.00 125.00 600.00 100.00 1,250.00 2,075.00 149,954.00 22,944.00 110.00 51.00 15,912.00 2,911.00 11,272.00 564.00 53,764.00 22,584.00 22,584.00 1141-4304 Telephone 821.00 Year-to-date Expenditures Expenditures 382.36 382.36 29,675.13 29,675.13 38.61 119.08 100.00 -100.00 157.69 30,215.18 1,943.00 0.00 0.00 1,325.50 244.80 990.82 47.42 4,551.54 583.34 583.34 4,496.92 4,496.92 124,549.84 124,549.84 130.38 189.44 250.00 117.28 687.10 129,733.86 22,897.58 0.00 0.00 15,906.00 2,906.30 11,601.61 563.06 53,874.55 14,268.04 14,268.04 Year-to-date Encumbrances 0.00 0.00 Prct Balance Used -17.92 100.40 -17.92 100.40 0.00 18,850.16 86.85 0.00 18,850.16 86.85 0.00 0.00 0.00 0.00 0.00 -5.38 410.56 -150.00 1,132.72 1,387.90 104.30 31.57 250.00 9.38 33.11 0.00 20,220.14 86.52 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 46.42 110.00 51.00 6.00 4.70 -329.61 0.94 -110.55 99.80 0.00 0.00 99.96 99.84 102.92 99.83 100.21 8,315.96 63.18 8,315.96 63.18 41.13 695.71 0.00 125.29 84.74 Page: 3 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report Page: 4 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 001 General Fund Account Number 1141-4305 Office Oper Supplies 1141-4315 Membership 01 141-4317 Conference/Training 41-4390 Computer Replacement Chrgs 41-4396 Insurance User Charges Total Materials/Supplies/Other Total City Treasurer 1201 City Manager 1201-4100 Personal Services 1201-4102 Regular Salaries 1201-4111 Accrual Cash In 1201-4180 Retirement 1201-4188 Employee Benefits 1201-4189 Medicare Benefits Total Personal Services •1201-4300 Materials/Supplies/Other 1201-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 2,240.00 120.00 1,123.00 8,595.00 2,224.00 15,123.00 352.28 0.00 0.00 719.00 189.00 1,301.41 2,335.18 120.00 777.50 8,595.00 2,224.00 14,747.39 0.00 0.00 0.00 0.00 0.00 0.00 -95.18 104.25 0.00 100.00 345.50 69.23 0.00 100.00 0.00 100.00 375.61 97.52 91,471.00 6,436.29 82,889.98 0.00 8,581.02 90.62 179,967.00 13,108.00 13,062.00 21,777.00 2,620.00 230,534.00 14,981.89 13,083.36 1,087.30 2,018.47 407.88 31,578.90 181, 340.44 20,635.39 13,164.43 24,006.42 2,939.62 242,086.30 0.00 0.00 0.00 0.00 0.00 0.00 1201-4201 Contract Serv/Private 2,725.00 0.00 1,345.00 575.00 Total Contract Services 2,725.00 0.00 1,345.00 575.00 1201-4304 Telephone 1201-4305 Office Oper Supplies 1201-4315 Membership 1201-4317 Conference/Training 1201-4390 Computer Replacement Chrgs 1201-4396 Insurance User Charges Total Materials/Supplies/Other Total City Manager 1202 Finance Administration 1,000.00 1,500.00 1,500.00 5,500.00 13,467.00 8,877.00 31,844.00 265,103.00 24.98 17.34 0.00 25.00 1,125.00 737.00 1,929.32 33,508.22 831.86 838.41 1,254.00 2,714.18 13,467.00 8,877.00 27,982.45 271,413.75 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -1,373.44 -7,527.39 -102.43 -2,229.42 -319.62 -11,552.30 100.76 157.43 100.78 110.24 112.20 105.01 805.00 70.46 805.00 70.46 168.14 661.59 246.00 2,785.82 0.00 0.00 3,861.55 83.19 55.89 83.60 49.35 100.00 100.00 87.87 575.00 -6,885.75 102.60 Page: 4 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 5 001 General Fund Account Number 1202-4100 Personal Services 1202-4102 1202-4106 1202-4111 •1202-4180 1202-4188 1202-4189 Regular Salaries Regular Overtime Accrual Cash In Retirement Employee Benefits Medicare Benefits Total Personal Services 1202-4200 Contract Services 1202-4201 Contract Serv/Private 1202-4251 Contract Service/Govt Total Contract Services 1202-4300 Materials/Supplies/Other 1202-4304 Telephone 1202-4305 Office Oper Supplies 1202-4315 Membership 1202-4317 Conference/Training 1202-4390 Computer Replacement Chrgs 1202-4395 Equip Replacement Charges 1202-4396 Insurance User Charges • Total Materials/Supplies/Other Total Finance Administration 1203 Personnel 1203-4100 Personal Services 1203-4102 Regular Salaries 1203-4111 Accrual Cash In 1203-4180 Retirement 1203-4188 Employee Benefits 1203-4189 Medicare Benefits Adjusted Year-to-date Year-to-date Appropriation Expenditures Expenditures Encumbrances 323,034.00 550.00 18,998.00 23,928.00 40,810.00 2,290.00 409,610.00 109,968.00 2,987.00 112,955.00 2,200.00 9,763.00 330.00 5,729.00 48,219.00 5,608.00 16,538.00 88,387.00 610,952.00 80,710.00 2,938.00 5,888.00 40,658.00 1,197.00 26,028.50 0.00 224.19 1,927.28 3,509.21 195.62 31,884.80 319,900.59 0.00 18,445.53 23,693.55 41,331.88 2,343.53 405,715.08 3,425.00 66,540.94 0.00 2,986.62 3,425.00 69,527.56 220.10 1,917.27 962.27 9,875.36 0.00 335.00 70.36 3,967.74 4,021.00 48,219.00 471.00 5,608.00 1,380.00 16,538.00 7,124.73 86,460.37 42,434.53 561,703.01 6,347.52 0.00 462.30 4,530.39 94.24 80,703.30 1,743.46 5,887.09 45,778.45 1,221.95 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,730.94 0.00 17,730.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,730.94 0.00 0.00 0.00 0.00 0.00 Prct Balance Used 3,133.41 99.03 550.00 0.00 552.47 97.09 234.45 99.02 -521.88 101.28 -53.53 102.34 3,894.92 99.05 25,696.12 76.63 0.38 99.99 25,696.50 77.25 282.73 87.15 -112.36 101.15 -5.00 101.52 1,761.26 69.26 0.00 100.00 0.00 100.00 • 0.00 100.00 1,926.63 97.82 31,518.05 94.84 6.70 99.99 1,194.54 59.34 0.91 99.98 -5,120.45 112.59 -24.95 102.08 Page: 5 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report Page: 6 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 001 General Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used Total Personal Services 131,391.00 1203-4200 Contract Services .03-4201 Contract Serv/Private 1203-4251 Contract Service/Govt Total Contract Services 1203-4300 Materials/Supplies/Other 1203-4304 Telephone 1203-4305 Office Oper Supplies 1203-4315 Membership 1203-4317 Conference/Training 1203-4320 Medical Exams 1203-4390 Computer Replacement Chrgs 1203-4396 Insurance User Charges Total Materials/Supplies/Other 1203-5400 Equipment/Fumiture 1203-5401 Equip -Less Than $1,000 Total Equipment/Fumiture Total Personnel 1111208 General Appropriations 1208-4100 Personal Services 1208-4102 Regular Salaries 1208-4111 Accrual Cash In 1208-4180 Retirement 1208-4188 Employee Benefits 1208-4189 Medicare Benefits Total Personal Services 1208-4200 Contract Services 64,675.00 7,000.00 71,675.00 1,470.00 5,300.00 820.00 14,900.00 17,575.00 21,435.00 4,513.00 66,013.00 200.00 200.00 269,279.00 42,261.00 4,134.00 3,319.00 9,363.00 643.00 59,720.00 11,434.45 135,334.25 0.00 -3,943.25 103.00 7,791.91 0.00 7,791.91 628.60 99.18 0.00 0.00 1,240.00 1,789.00 377.00 4,133.78 0.00 0.00 23,360.14 3,526.00 0.00 264.10 816.62 51.12 4,657.84 43,636.49 0.00 43,636.49 1,994.13 1,789.79 608.95 10,399.63 7,184.00 21,435.00 4,513.00 47,924.50 178.36 178.36 227,073.60 42,143.00 0.00 3,156.57 9,600.25 611.02 55,510.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 21,038.51 7,000.00 28,038.51 -524.13 3,510.21 211.05 4,500.37 10,391.00 0.00 0.00 18,088.50 67.47 0.00 60.88 135.66 33.77 74.26 69.80 40.88 100.00 100.00 72.60 0.00 21.64 89.18 0.00 21.64 89.18 0.00 42,205.40 84.33 0.00 0.00 0.00 0.00 0.00 0.00 118.00 99.72 4,134.00 0.00 162.43 95.11 -237.25 102.53 31.98 95.03 4,209.16 92.95 Page: 6 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report Page: 7 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 001 General Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1208-4201 Contract Serv/Private 8,234.00 Total Contract Services 8,234.00 1208-4300 Materials/Supplies/Other 1208-4304 Telephone 4111208-4305 Office Oper Supplies 1208-4390 Computer Replacement Chrgs 1208-4396 Insurance User Charges Total Materials/Supplies/Other Total General Appropriations 1214 Prospective Expenditures 1214-4300 Materials/Supplies/Other 1214-4322 Unclassified Total Prospective Expenditures 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 OperatingTransfers Out Total Interfund Transfers Out •2101 Police 2101-4100 Personal Services 2101-4102 Regular Salaries 2101-4105 Special Duty Pay 2101-4106 Regular Overtime 2101-4111 Accrual Cash In 2101-4117 Shift Differential 2101-4118 Training Officer 2101-4180 Retirement 2101-4187 Uniform Allowance 150.00 -31,000.00 14,014.00 2,246.00 -14,590.00 53,364.00 211,353.00 211,353.00 796,150.00 796,150.00 3,140,148.00 57,432.00 268,000.00 378,857.00 6,482.00 9,700.00 1,075,854.00 30,400.00 1,384.76 1,384.76 18.94 -207.64 1,166.00 189.00 1,166.30 7,208.90 8,678.62 8,678.62 109.04 -18,432.62 14,014.00 2,246.00 -2,063.58 62,125.88 0.00 -444.62 105.40 0.00 -444.62 105.40 0.00 549.37 0.00 0.00 549.37 549.37 40.96 -13,116.75 0.00 0.00 -13,075.79 -9,311.25 0.00 0.00 0.00 211,353.00 0.00 0.00 0.00 211,353.00 72.69 57.69 100.00 100.00 10.38 117.45 0.00 0.00 69,967.00 796,150.00 0.00 0.00 100.00 69,967.00 796,150.00 0.00 0.00 100.00 248,862.23 2,936,789.78 5,397.58 58,906.07 22,621.60 206,646.97 23,496.70 567,393.99 416.62 4,871.79 1,117.16 4,825.79 88,985.91 1,076,107.48 2,296.88 27,441.10 0.00 0.00 0.00 0.00 0.00 0.00 0.00 71.30 203,358.22 93.52 -1,474.07 102.57 61,353.03 77.11 -188,536.99 149.76 1,610.21 75.16 4,874.21 49.75 -253.48 1 00 .02 2,887.60 90.50 Page: 7 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 8 001 General Fund Account Number 2101-4188 Employee Benefits 2101-4189 Medicare Benefits Total Personal Services 001-4200 Contract Services 2101-4201 Contract Serv/Private 2101-4251 Contract Service/Govt Total Contract Services 2101-4300 Materials/Supplies/Other 2101-4304 2101-4305 2101-4306 2101-4307 2101-4309 2101-4312 2101-4313 2101-4314 2101-4315 2101-4317 2101-4390 022101-4395 101-4396 Telephone Office Oper Supplies Prisoner Maintenance Radio Maintenance Maintenance Materials Travel Expense , POST Travel Expense, STC Uniforms Membership Conference/Training Computer Replacement Chrgs Equip Replacement Charges Insurance User Charges Total Materials/Supplies/Other 2101-5400 Equipment/Fumiture 2101-5401 Equip -Less Than $1,000 2101-5402 Equip -More Than $1,000 Total Equipment/Fumiture Total Police 2102 Crossing Guard 2102-4200 Contract Services Adjusted Appropriation Expenditures 503,874.00 37,092.00 5,507,839.00 301,154.00 35,250.00 336,404.00 50,000.00 19,885.00 7,194.00 3,500.00 4,600.00 10,000.00 2,600.00 14,800.00 2,205.00 22,475.00 31,263.00 297,550.00 631,543.00 1,097,615.00 1,680.00 40,459.00 42,139.00 6,983,997.00 27,651.51 3,327.83 424,174.02 Year-to-date Year-to-date Expenditures Encumbrances 316,492.28 39,925.33 5,239,400.58 20,382.76 237,045.35 314.68 29,173.17 20,697.44 266,218.52 5,220.79 63,291.61 2,489.08 18,875.96 1,267.50 7,597.87 580.84 2,096.71 267.90 3,732.57 1,660.71 6,283.43 900.00 2,369.58 1,852.00 8,473.69 0.00 1,062.02 47.00 8,244.28 2,608.00 31,263.00 24,805.00 297,550.00 52,635.00 631,543.00 94,333.82 1,082,383.72 438.41 1,676.80 280.00 9,074.40 718.41 10,751.20 539,923.69 6,598,754.02 Prct Balance Used 0.00 187,381.72 62.81 0.00 -2,833.33 107.64 71.30 268,367.12 95.13 0.00 64,108.65 78.71 0.00 6,076.83 82.76 0.00 70,185.48 79.14 0.00 -13,291.61 126.58 0.00 1,009.04 94.93 0.00 -403.87 105.61 0.00 1,403.29 59.91 0.00 867.43 81.14 0.00 3,716.57 62.83 0.00 230.42 91.14 3,607.83 2,718.48 81.63 0.00 1,142.98 48.16 0.00 '14,230.72 36.68 0.00 0.00 100.00 0.00 0.00 100.00 0.00 0.00 100.00 3,607.83 11,623.45 98.94 0.00 3.20 99.81 0.00 31,384.60 22.43 0.00 31,387.80 25.51 3,679.13 381,563.85 94.54 Page: 8 expstat.rpt • 07/21/2004 4:14PM Expenditure Status Report Page: 9 CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 001 General Fund Account Number 2102-4201 Contract Serv/Private Total Crossing Guard 2201 Fire •2201-4100 Personal Services 2201-4102 Regular Salaries 2201-4106 Regular Overtime 2201-4108 FLSA Overtime 2201-4111 Accrual Cash In 2201-4112 Part Time/Temporary 2201-4119 Fitness Incentive 2201-4180 Retirement 2201-4187 Uniform Allowance 2201-4188 Employee Benefits 2201-4189 Medicare Benefits Total Personal Services 2201-4200 Contract Services 2201-4201 Contract Serv/Private 2201-4251 Contract Service/Govt Total Contract Services 2201-4300 Materials/Supplies/Other 11k201-4304 Telephone 2201-4305 Office Oper Supplies 2201-4309 Maintenance Materials 2201-4314 Uniforms 2201-4315 Membership 2201-4317 Conference/Training 2201-4390 Computer Replacement Chrgs 2201-4395 Equip Replacement Charges 2201-4396 Insurance User Charges Total Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 61,888.00 61,888.00 1,707,286.00 249,235.00 139,367.00 281,043.00 41,000.00 8,400.00 518,460.00 12,000.00 198,821.00 15,299.00 3,170,911.00 39,412.00 2,776.00 42,188.00 15,672.00 9,766.00 21,000.00 7,278.00 4,239.00 34,275.00 36,007.00 125,952.00 230,326.00 484,515.00 7,642.95 60,842.42 715.08 330.50 99.47 7,642.95 60,842.42 715.08 330.50 99.47 139,170.91 1,604,623.26 28,181.50 289,189.66 15,015.71 162,866.52 33,833.51 130,079.87 3,200.00 44,800.00 0.00 8,750.00 43,090.65 527,269.02 975.00 12,616.39 17,493.97 199,158.67 2,093.34 23,271.84 283,054.59 3,002,625.23 1,765.78 0.00 1,765.78 1,657.08 1,618.53 2,015.63 336.55 260.00 101.03 2,996.00 10,496.00 19,192.00 38,672.82 29,697.50 3,250.00 32,947.50 13,403.01 8,441.18 18,536.06 5,677.94 3,464.16 27,135.59 36,007.00 125,952.00 230,326.00 468,942.94 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 158.91 0.00 158.91 0.00 0.00 345.76 1,154.59 0.00 643.26 0.00 0.00 0.00 2,143.61 102,662.74 93.99 -39,954.66 116.03 -23,499.52 116.86 150,963.13 46.28 -3,800.00 109.27 -350.00 104.17 -8,809.02 101.70 -616.39 105.14 -337.67 100.17 -7,972.84 152.11 168,285.77 94.69 9,555.59 -474.00 9,081.59 75.75 117.07 78.47 2,268.99 85.52 1,324.82 86.43 2,118.18 89.91 445.47 93.88 774.84 81.72 6,496.15 81.05 0.00 100.00 0.00 100.00 0.00 100.00 13,428.45 97.23 Page: 9 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 10 001 General Fund Account Number 2201-5400 Equipment/Furniture 46 Equip -Less Than $1,000 01-5402 Equip -More Than $1,000 Total Equipment/Furniture Total Fire 3104 Traffic Safety/St. Maint. 3104-4100 Personal Services 3104-4102 Regular Salaries 3104-4106 Regular Overtime 3104-4111 Accrual Cash In 3104-4180 Retirement 3104-4188 Employee Benefits 3104-4189 Medicare Benefits Total Personal Services 3104-4200 Contract Services Adjusted Year-to-date Year-to-date Prot Appropriation Expenditures Expenditures Encumbrances Balance Used 1,230.00 13,449.00 14,679.00 3,712,293.00 237,467.00 6,500.00 4,870.00 17,816.00 31,876.00 923.00 299,452.00 0.00 3,019.87 3,019.87 326,513.06 19,410.01 1,434.34 856.98 1,456.19 2,774.37 86.07 26,017.96 1,690.27 10,492.28 12,182.55 3,516,698.22 234,491.68 5,130.03 4,784.64 17,591.98 32,541.03 918.56 295,457.92 0.00 2,867.78 2,867.78 -460.27 137.42 88.94 99.34 -371.33 102.53 5,170.30 190,424.48 94.87 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,975.32 1,369.97 85.36 224.02 -665.03 4.44 3,994.08 3104-4201 Contract Serv/Private 265,891.00 21,724.21 192,049.41 52,739.48 21,102.11 Ank3104-4251 Contract Service/Govt 9,960.00 5,339.86 6,705.78 3,204.54 49.68 11. Total Contract Services 275,851.00 27,064.07 198,755.19 55,944.02 21,151.79 3104-4300 Materials/Supplies/Other 3104-4303 Utilities 3104-4309 Maintenance Materials 3104-4395 Equip Replacement Charges 3104-4396 Insurance User Charges Total Materials/Supplies/Other Total Traffic Safety/St. Maint. 4101 Community 0ev/Planning 4101-4100 Personal Services 16,920.00 50,738.00 24,597.00 106,450.00 198,705.00 774,008.00 2,163.31 6,501.68 2,047.00 8,869.00 19,580.99 72,663.02 14,259.61 52,815.25 24,597.00 106,450.00 198,121.86 692,334.97 0.00 0.00 0.00 0.00 0.00 55,944.02 2,660.39 -2,077.25 0.00 0.00 583.14 98.75 78.92 98.25 98.74 102.09 99.52 98.67 92.06 99.50 92.33 84.28 104.09 100.00 100.00 99.71 25,729.01 96.68 Page: 10 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 11 001 General Fund Account Number 4101-4102 Regular Salaries 4101-4111 Accrual Cash In 4101-4112 Part Time/Temporary 4101-4180 Retirement 4101-4188 Employee Benefits 101-4189 Medicare Benefits Total Personal Services 4101-4200 Contract Services 4101-4201 Contract Serv/Private Total Contract Services 4101-4300 Materials/Supplies/Other 4101-4304 Telephone 4101-4305 Office Oper Supplies 4101-4315 Membership 4101-4317 Conference/Training 4101-4390 Computer Replacement Chrgs 4101-4396 Insurance User Charges Total Materials/Supplies/Other Total Community Dev/Planning 4201 Community Dev/Building 01201-4100 Personal Services 4201-4102 Regular Salaries 4201-4111 Accrual Cash In 4201-4112 Part Time/Temporary 4201-4180 Retirement 4201-4188 Employee Benefits 4201-4189 Medicare Benefits Total Personal Services 4201-4200 Contract Services Adjusted Year-to-date Year-to-date Prot Appropriation Expenditures Expenditures Encumbrances Balance Used 290,113.00 4,028.00 8,060.00 24,102.00 39,079.00 4,708.00 370,090.00 46,157.00 46,157.00 1,000.00 7,000.00 1,360.00 8,120.00 26,705.00 12,052.00 56,237.00 472,484.00 311,201.00 3,584.00 8,643.00 23,152.00 32,050.00 4,519.00 383,149.00 19,984.99 0.00 560.25 1,646.38 2,901.91 365.09 25,458.62 240,822.14 1,141.92 4,757.28 19,948.45 32,156.13 4,284.72 303,110.64 2,386.28 32,371.16 2,386.28 32,371.16 379.67 1,143.69 649.22 4,600.34 0.00 541.00 0.00 2,349.99 2,219.00 26,705.00 1,008.00 12,052.00 4,255.89 47,392.02 32,100.79 382,873.82 21,240.07 0.00 2,501.07 1,603.50 2,826.49 408.17 28,579.30 256,295.59 1,241.22 30,653.58 19,341.60 33,862.20 5,038.23 346,432.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 998.00 998.00 0.00 0.00 0.00 400.00 0.00 0.00 400.00 49,290.86 83.01 2,886.08 28.35 3,302.72 59.02 4,153.55 82.77 6,922.87 82.28 423.28 91.01 66,979.36 81.90 12,787.84 72.29 12,787.84 72.29 -143.69 114.37 2,399.66 65.72 819.00 39.78 5,370.01 33.87 0.00 100.00 0.00 100.00 8,444.98 84.98 1,398.00 88,212.18 81.33 0.00 0.00 0.00 0.00 0.00 0.00 0.00 54,905.41 2,342.78 -22,010.58 3,810.40 -1,812.20 -519.23 36,716.58 82.36 34.63 354.66 83.54 105.65 111.49 90.42 Page: 11 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 12 001 General Fund Account Number 4201-4201 Contract Serv/Private Total Contract Services 001-4300 Materials/Supplies/Other 4201-4304 Telephone 4201-4305 Office Oper Supplies 4201-4315 Membership 4201-4317 Conference/Training 4201-4390 Computer Replacement Chrgs 4201-4395 Equip Replacement Charges 4201-4396 Insurance User Charges Total Materials/Supplies/Other Total Community Dev/Building 4202 Public Works Administration 4202-4100 Personal Services 4202-4102 Regular Salaries 4202-4106 Regular Overtime 4202-4111 Accrual Cash In 4202-4180 Retirement 202-4188 Employee Benefits 4202-4189 Medicare Benefits Total Personal Services 4202-4200 Contract Services 4202-4201 Contract Serv/Private 4202-4251 Contract Service/Govt Total Contract Services 4202-4300 Materials/Supplies/Other 4202-4304 Telephone 4202-4305 Office Oper Supplies Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 302,094.00 302,094.00 2,675.00 6,000.00 1,970.00 3,500.00 41,165.00 13,121.00 23,181.00 91,612.00 776,855.00 144,781.00 5,000.00 4,064.00 11,515.00 19,070.00 2,190.00 186,620.00 42,491.00 150.00 42,641.00 17,600.00 11,500.00 2,041.94 227,982.77 2,041.94 227,982.77 437.19 3,079.88 406.92 6,524.71 115.00 880.00 155.00 1,579.95 3,424.00 41,165.00 1,098.00 13,121.00 1,929.00 23,181.00 7,565.11 89,531.54 38,186.35 663,946.73 11,510.66 143,151.07 458.15 2,594.10 428.49 2,737.49 859.54 10,700.25 1,440.61 17,918.20 180.72 2,166.39 14,878.17 179,267.50 4,230.14 15,910.86 0.00 150.00 4,230.14 16,060.86 1,695.48 17,505.10 779.90 11,414.03 3,940.43 3,940.43 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 70,170.80 70,170.80 -404.88 -524.71 1,090.00 1,920.05 0.00 0.00 0.00 2,080.46 76.77 76.77 115.14 108.75 44.67 45.14 100.00 100.00 100.00 97.73 3,940.43 108,967.84 85.97 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,799.00 0.00 2,799.00 0.00 96.89 1,629.93 98.87 2,405.90 51.88 1,326.51 67.36 814.75 92.92 1,151.80 93.96 23.61 98.92 7,352.50 96.06 23,781.14 44.03 0.00 100.00 23,781.14 44.23 94.90 99.46 -10.92 100.09 Page: . 12 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 13 001 General Fund Account Number 4202-4314 Uniforms 4202-4315 Membership 4202-4317 Conference/Training 4202-4390Computer Replacement Chrgs 4202-4395 Equip Replacement Charges 4202-4396 Insurance User Charges Total Materials/Supplies/Other 4202-5400 Equipment/Fumiture 4202-5401 Equip -Less Than $1,000 4202-5402 Equip -More Than $1,000 Total Equipment/Fumiture Total Public Works Administration 4204 Building Maintenance 4204-4100 Personal Services 4204-4102 Regular Salaries 4204-4106 Regular Overtime 4204-4111 Accrual Cash In 4204-4180 Retirement 4204-4188 Employee Benefits Total Personal Services 4,204-4200 Contract Services 4204-4201 Contract Serv/Private Total Contract Services 4204-4300 Materials/Supplies/Other 4204-4303 Utilities 4204-4309 Maintenance Materials 4204-4321 Building Sfty/Security 4204-4395 Equip Replacement Charges Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 8,000.00 1,500.00 10,625.00 49,332.00 12,596.00 66,729.00 177,882.00 2,125.00 1,400.00 3,525.00 410,668.00 81,594.00 3,600.00 2,440.00 6,247.00 12,800.00 106,681.00 183,000.00 183,000.00 136,026.00 23,000.00 6,000.00 10,063.00 868.18 5,537.72 0.00 855.50 50.00 7,899.41 4,111.00 49,332.00 1,046.00 12,596.00 5,558.00 66,729.00 14,108.56 171,868.76 0.00 1,967.50 1,375.59 1,375.59 1,375.59 3,343.09 34,592.46 370,540.21 4,880.64 298.17 0.00 367.49 880.70 6,427.00 34,319.37 34,319.37 19,868.07 2,622.10 768.56 834.00 71,176.24 3,547.09 6,321.22 5,359.07 11,733.00 98,136.62 137,912.35 137,912.35 124,586.06 22,653.89 3,290.24 10,063.00 0.00 0.00 0.00 0.00 0.00 0.00 96.89 0.00 0.00 0.00 2,462.28 644.50 2,725.59 0.00 0.00 0.00 5,916.35 157.50 24.41 181.91 2,895.89 37,231.90 0.00 0.00 0.00 0.00 0.00 0.00 1,200.00 1,200.00 0.00 0.00 630.25 0.00 10,417.76 52.91 -3,881.22 887.93 1,067.00 8,544.38 69.22 57.03 74.35 100.00 100.00 100.00 96.67 92.59 98.26 94.84 90.93 87.23 98.53 259.07 85.79 91.66 91.99 43,887.65 76.02 43,887.65 76.02 11,439.94 346.11 2,079.51 0.00 91.59 98.50 65.34 100.00 Page: 13 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 14 001 General Fund Account Number 4204-4396 Insurance User Charges Total Materials/Supplies/Other 4004-5400 Equipment/Furniture 4204-5402 Equip -More Than $1,000 Total Equipment/Furniture Total Building Maintenance 4601 Community Resources 4601-4100 Personal Services 4601-4102 Regular Salaries 4601-4106 Regular Overtime 4601-4111 Accrual Cash In 4601-4112 Part Time/Temporary 4601-4180 Retirement 4601-4188 Employee Benefits 4601-4189 Medicare Benefits Total Personal Services 4601-4200 Contract Services 4601-4201 Contract Serv/Private 4601-4221 Contract Rec Classes/Programs Total Contract Services 4601-4300 Materials/Supplies/Other 4601-4302 Advertising 4601-4304 Telephone 4601-4305 Office Oper Supplies 4601-4308 Program Materials 4601-4309 Maintenance Materials 4601-4315 Membership 4601-4317 Conference/Training Adjusted Appropriation 13,175.00 188,264.00 4,912.00 4,912.00 482,857.00 308,696.00 2,700.00 10,082.00 140,000.00 24,285.00 42,421.00 17,003.00 545,187.00 125,567.00 202,369.00 327,936.00 28,500.00 9,220.00 11,000.00 49,812.00 2,000.00 1,100.00 3,600.00 Year-to-date Expenditures Expenditures 1,097.00 25,189.73 0.00 0.00 65,936.10 14,482.73 140.64 0.00 22,054.94 1,098.33 1,384.08 1,503.05 40,663.77 13,167.52 32,040.50 45,208.02 8,605.97 1,509.57 -195.45 3,001.06 133.45 0.00 1,940.00 13,175.00 173,768.19 4,911.13 4,911.13 414,728.29 182,131.41 2,388.64 0.00 165,895.12 13,765.40 16,172.29 11,845.68 392,198.54 115,890.09 208,349.84. 324,239.93 26,822.59 9,758.40 10,799.21 25,888.47 586.46 971.00 4,176.34 Year-to-date Encumbrances 0.00 630.25 0.00 0.00 1,830.25 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 169.95 406.59 0.00 0.00 0.00 Prct Balance Used 0.00 100.00 13,865.56 92.64 0.87 99.98 0.87 99.98 66,298.46 86.27 126,564.59 311.36 10,082.00 -25,895.12 10,519.60 26,248.71 5,157.32 152,988.46 9,676.91 -5,980.84 3,696.07 1,677.41 -538.40 30.84 23,516.94 1,413.54 129.00 -576.34 59.00 88.47 0.00 118.50 56.68 38.12 69.67 71.94 92.29 102.96 98.87 94.11 105.84 99.72 52.79 29.32 88.27 116.01 Page: 14 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 15 001 General Fund Account Number 4601-4319 Special Events 4601-4390 Computer Replacement Chrgs 4601-4395 Equip Replacement Charges 4601-4396 Insurance User Charges Total Materials/Supplies/Other .601-5400 Equipment/Fumiture 4601-5401 Equip -Less Than $1,000 4601-5402 Equip -More Than $1,000 Total Equipment/Furniture 4601-5600 Buildings/Improvements Total Buildings/Improvements Total Community Resources 6101 Parks 6101-4100 Personal Services 6101-4102 Regular Salaries 6101-4106 Regular Overtime 6101-4111 Accrual Cash In 6101-4180 Retirement 6101-4188Employee Benefits .101-4189 Medicare Benefits Total Personal Services 6101-4200 Contract Services 6101-4201 Contract Serv/Private 6101-4251 Contract Service/Govt Total Contract Services 6101-4300 Materials/Supplies/Other 6101-4303 Utilities Adjusted Appropriation 5,108.00 49,861.00 12,222.00 42,920.00 215,343.00 12,442.00 1,677.00 14,119.00 0.00 1,102,585.00 100,833.00 2,000.00 2,784.00 7,592.00 14,200.00 541.00 127,950.00 243,758.00 100.00 243,858.00 137,000.00 Year-to-date Year-to-date Expenditures Expenditures Encumbrances 1,060.00 4,156.00 1,013.00 3,573.00 24,796.60 3,695.07 0.00 3,695.07 0.00 114,363.46 8,349.66 0.00 0.00 628.60 1,244.13 45.06 10,267.45 24,379.98 0.00 24,379.98 29,313.66 3,877.43 49,861.00 12,222.00 42,920.00 187,882.90 8,092.58 1,389.82 9,482.40 0.00 913,803.77 100,861.20 873.22 3,698.35 7,593.17 14,651.09 573.33 128,250.36 0.00 0.00 0.00 0.00 576.54 482.82 0.00 482.82 Prct Balance Used 1,230.57 0.00 0.00 0.00 26,883.56 3,866.60 287.18 4,153.78 75.91 100.00 100.00 100.00 87.52 68.92 82.88 70.58 0.00 0.00 0.00 187,721.87 82.97 1,059.36 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -28.20 1,126.78 -914.35 -1.17 -451.09 -32.33 -300.36 100.03 43.66 132.84 100.02 103.18 105.98 100.23 223,149.16 24,237.22 -3,628.38 101.49 84.00 0.00 16.00 84.00 223,233.16 24,237.22 -3,612.38 101.48 132,996.60 0.00 4,003.40 97.08 Page: 15 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 16 001 General Fund Account Number 6101-4309 Maintenance Materials 6101-4395 Equip Replacement Chrgs 01-4396 Insurance User Charges 1 s Total Materials/Supplies/Other 6101-5400 Equipment/Furniture 6101-5402 Equip -More Than $1,000 Total Equipment/Fumiture Total Parks 8622 ADA Compliance, City Hall 8622-4200 Contract Services 8622-4201 Contract Serv/Private Total Contract Services 8622-5400 Equipment/Fumiture 8622-5402 Equip -More Than $1,000 Total Equipment/Fumiture Total ADA Compliance, City Hall *630 Pier Renovation/Phase III 8630-4200 Contract Services 8630-4201 Contract Serv/Private Total Pier Renovation/Phase III Total General Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 19,810.00 19,176.00 18,200.00 194,186.00 20,160.00 20,160.00 586,154.00 29,497.00 29,497.00 4,813.00 4,813.00 34,310.00 385,577.00 385,577.00 18,831,725.00 1,283.42 1,598.00 1,513.00 33,708.08 21,664.99 19,176.00 18,200.00 192,037.59 0.00 0.00 0.00 0.00 -1,854.99 0.00 0.00 2,148.41 109.36 100.00 100.00 98.89 135.14 17,261.32 0.00 2,898.68 85.62 135.14 17,261.32 0.00 2,898.68 85.62 68,490.65 560,782.43 24,237.22 1,134.35 99.81 25,245.00 25,245.00 0.00 0.00 25,245.00 12,252.22 12,252.22 1,597,346.40 26,606.72 26,606.72 0.00 0.00 26,606.72 2,805.00 2,805.00 0.00 0.00 85.28 99.71 85.28 99.71 4,813.00 0.00 4,813.00 0.00 2,805.00 4,898.28 85.72 78,516.98 250,014.19 78,516.98 250,014.19 16,944,449.65 373,044.18 57,045.83 57,045.83 1.514,231.17 85.21 85.21 91.96 Page: 16 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 17 105 Lightg/Landscapg Dist Fund Account Number 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Transfers Out Total Interfund Transfers Out •2601 Lighting/Landscaping/Medians 2601-4100 Personal Services 2601-4102 Regular Salaries 2601-4106 Regular Overtime 2601-4111 Accrual Cash In 2601-4180 Retirement 2601-4188 Employee Benefits 2601-4189 Medicare Benefits Total Personal Services 2601-4200 Contract Services 2601-4201 Contract Serv/Private 2601-4251 Contract Service/Govt Total Contract Services 2601-4300 Materials/Supplies/Other •601-4303 Utilities • 2601-4309 Maintenance Materials 2601-4395 Equip Replacement Charges 2601-4396 Insurance User Charges Total Materials/Supplies/Other Total Lighting/Landscaping/Medians Total Lightq/Landscapq Dist Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 20,463.00 1,708.00 20,463.00 0.00 0.00 100.00 20,463.00 1,708.00 20,463.00 0.00 0.00 100.00 165,956.00 3,500.00 3,621.00 12,532.00 20,616.00 2,212.00 208,437.00 41,207.00 21,700.00 62,907.00 188,000.00 28,300.00 41,819.00 36,192.00 294,311.00 565,655.00 586,118.00 13,416.33 163,574.14 533.33 3,215.42 7,114.39 12,332.98 1,004.08 12,242.15 2,272.65 26,696.13 197.50 2,281.57 24,538.28 220,342.39 3,175.00 35,884.00 1,580.99 8,599.40 4,755.99 44,483.40 26,883.12 150,991.52 4,462.36 25,812.48 3,484.00 41,819.00 3,016.00 36,192.00 37,845.48 254,815.00 67,139.75 519,640.79 68,847.75 540,103.79 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,381.86 284.58 -8,711.98 289.85 -6,080.13 -69.57 -11,905.39 5,323.00 13,100.60 18,423.60 37,008.48 2,487.52 0.00 0.00 39,496.00 46,014.21 46,014.21 98.56 91.87 340.60 97.69 129.49 103.15 105.71 87.08 39.63 70.71 80.31 91.21 100.00 100.00 86.58 91.87 92.15 Page: 17 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 18 109 Downtown Enhancement Fund Account Number 1299 Interfund Transfers Out 99-4300 Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 03�f299 4399 Operating Transfers Out ,734.00 276.00 3,734.00 0.00 0.00 100.00 Total Interfund Transfers Out 3,734.00 276.00 3,734.00 0.00 0.00 100.00 3301 Downtown Enhancement 3301-4100 Personal Services 3301-4102 Regular Salaries 3301-4106 Regular Overtime 3301-4111 Accrual Cash In 3301-4180 Retirement 3301-4188 Employee Benefits 3301-4189 Medicare Benefits Total Personal Services 3301-4200 Contract Services. 3301-4201 Contract Serv/Private Total Contract Services .301-4300 Materials/Supplies/Other 3301-4309 Maintenance Materials 3301-4319 Special Events 3301-4396 Insurance User Charges Total Materials/Supplies/Other 3301-4900 Depreciation 3301-4901 Depreciation/Mach/Equip Total Depreciation Total Downtown Enhancement 3304 North Pier Parking Structure 34,459.00 900.00 1,378.00 2,551.00 4,199.00 407.00 43,894.00 154,361.00 154,361.00 1,800.00 65,640.00 2,897.00 70,337.00 2,703.59 33,913.46 8.75 812.26 428.50 570.58 200.00 2,540.14 361.72 4,247.63 38.04 412.00 3,740.60 42,496.07 18,309.03 140,303.72 18,309.03 140,303.72 0.00 984.50 1,604.36 42,136.11 246.00 2,897.00 1,850.36 46,017.61 1,210.00 0.00 0.00 1,210.00 0.00 0.00 269,802.00 23,899.99 228,817.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 545.54 87.74 807.42 10.86 -48.63 -5.00 1,397.93 98.42 90.25 41.41 99.57 101.16 101.23 96.82 16,410.67 -2,353.39 101.52 16,410.67 -2,353.39 101.52 0.00 0.00 0.00 0.00 0.00 0.00 16,410.67 815.50 23,503.89 0.00 24,319.39 1,210.00 1,210.00 24,573.93 54.69 64.19 100.00 65.42 0.00 0.00 90.89 Page: 18 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 19 109 Downtown Enhancement Fund Account Number 3304-4200 Contract Services •3304-4300 Materials/Supplies/Other 3304-4201 Contract Serv/Private 3304-4231 Contract Serv/Pkg Lot Operator Total Contract Services 3304-4303 Utilities 3304-4304 Telephone 3304-4309 Maintenance Materials Total Materials/Supplies/Other 3304-4900 Depreciation 3304-4903 Depreciation/Bldgs Total Depreciation Total North Pier Parking Structure 3305 Downtown Parking Lot A 3305-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 20,996.00 192,944.00 213,940.00 37,000.00 435.00 4,100.00 41,535.00 116,350.00 116,350.00 371,825.00 3305-4231 Contract Serv/Pkg Lot Operator 144,811.00 Total Downtown Parking Lot A 144,811.00 306 Co. Share Pkg Structure Rev. 3306-4200 Contract Services 3306-4251 Contract Services/Govt 210,576.00 Total Co. Share Pkg Structure Rev. 210,576.00 3307 Lifeguard Serv/Beach Maint 3307-4200 Contract Services 3307-4251 Contract Services/Govt 55,000.00 500.00 20,615.05 13,810.71 155,262.06 14,310.71 175,877.11 2,531.09 26,016.70 34.54 436.16 0.00 1,321.82 2,565.63 27,774.68 0.00 0.00 0.00 0.00 16,876.34 203,651.79 0.00 37,681.94 37,681.94 0.00 0.00 1,000.00 1,000.00 0.00 0.00 38,681.94 380.95 0.00 380.95 10,983.30 -1.16 1,778.18 12,760.32 116,350.00 116,350.00 129,491.27 98.19 100.00 99.82 70.32 100.27 56.63 69.28 0.00 0.00 65.17 11,525.36 125,505.21 19,305.79 0.00 100.00 11,525.36 125,505.21 19,305.79 0.00 100.00 0.00 0.00 0.00 210,576.00 0.00 0.00 0.00 210,576.00 0.00 0.00 0.00 55,000.00 0.00 0.00 100.00 Page: 19 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 20 109 Downtown Enhancement Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used Total Lifeguard Sery/Beach Maint 55,000.00 8140 11th PI Street Parking Imp •40-4200 Contract Services 8140-4201 Contract Serv/Private Total 11th PI Street Parking Imp Total Downtown Enhancement Fund • 287,502.00 287,502.00 1,343,250.00 0.00 55,000.00 0.00 0.00 52,577.69 10,440.00 10,440.00 627,148.40 0.00 0.00 100.00 3,030.00 274,032.00 3,030.00 274,032.00 77,428.40 638.673.20 4.69 4.69 52.45 Page: 20 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 21 110 Parking Fund Account Number 1204 Finance Cashier 1204-4100 Personal Services 1204-4102 Regular Salaries 01204-4106 Regular Overtime 1204-4111 Accrual Cash In 1204-4180 Retirement 1204-4188 Employee Benefits 1204-4189 Medicare Benefits Total Personal Services 1204-4200 Contract Services 1204-4201 Contract Serv/Private Total Contract Services 1204-4300 Materials/Supplies/Other 1204-4304 Telephone 1204-4305 Office Oper Supplies 1204-4315 Membership 1204-4317 Conference/Training 1204-4390 Computer Replacement Chrgs 1204-4396 Insurance User Charges Total Materials/Supplies/Other 204-4900 Depreciation 1204-4901 Depreciation/Mach/Equip Total Depreciation Total Finance Cashier 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 263,881.00 500.00 6,076.00 19,717.00 36,451.00 2,564.00 329,189.00 68,470.00 68,470.00 2,201.00 21,717.00 150.00 4,386.00 67,879.00 10,446.00 106,779.00 850.00 850.00 505,288.00 21,304.56 0.00 0.00 1,591.86 3,501.60 213.81 26,611.83 14,045.86 14,045.86 353.19 515.92 0.00 9.00 5,652.00 876.00 7,406.11 255,654.73 0.00 1,120.76 19,102.12 39,612.79 2,563.09 318,053.49 51,313.26 51,313.26 2,030.67 19,928.24 150.00 1,952.27 67,879.00 10,446.00 102,386.18 0.00 0.00 0.00 0.00 48,063.80 471,752.93 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,226.27 500.00 4,955.24 614.88 -3,161.79 0.91 11,135.51 96.88 0.00 18.45 96.88 108.67 99.96 96.62 7,500.00 9,656.74 85.90 7,500.00 9,656.74 85.90 0.00 222.41 0.00 0.00 0.00 0.00 222.41 0.00 0.00 7,722.41 170.33 1,566.35 0.00 2,433.73 0.00 0.00 4,170.41 92.26 92.79 100.00 44.51 100.00 100.00 96.09 850.00 0.00 850.00 0.00 25,812.66 94.89 Page: 21 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 22 110 Parking Fund Account Number 1299-4399 Operating Transfers Out Total Interfund Transfers Out .02 Community Services 3302-4100 Personal Services 3302-4102 Regular Salaries 3302-4106 Regular Overtime 3302-4111 Accrual Cash In 3302-4112 Part Time/Temporary 3302-4117 Shift Differential 3302-4118 Field Training Officer 3302-4180 Retirement 3302-4187 Uniform Allowance 3302-4188 Employee Benefits 3302-4189 Medicare Benefits Total Personal Services 3302-4200 Contract Services 3302-4201 Contract Serv/Private 3302-4251 Contract Services/Govt Total Contract Services 03302-4300 Materials/Supplies/Other 3302-4304 Telephone 3302-4305 Office Oper Supplies 3302-4307 Radio Maintenance 3302-4309 Maintenance Materials 3302-4314 Uniforms 3302-4315 Membership 3302-4317 Conference/Training 3302-4390 Computer Replacement Chrgs 3302-4395 Equip Replacement Charges 3302-4396 Insurance User Charges Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1,227,575.00 1,227,575.00 661,188.00 6,000.00 34,863.00 9,216.00 5,000.00 500.00 84,990.00 5,880.00 82,693.00 4,311.00 894,641.00 16,581.00 1,800.00 18,381.00 3,000.00 7,140.00 1,600.00 16,511.00 3,000.00 375.00 6,750.00 56,641.00 83,339.00 102,065.00 102,297.00 102,297.00 1,227,575.00 0.00 0.00 100.00 1,227,575.00 0.00 0.00 100.00 50,177.54 635,656.49 1,156.46 4,927.10 448.93 19,629.33 321.25 4,464.30 317.12 4,956.96 0.00 0.00 6,280.67 78,814.38 450.00 5,780.00 6,745.00 85,364.02 442.26 5,722.09 66,339.23 845,314.67 1,526.52 10,905.98 433.73 2,298.98 1,960.25 13,204.96 243.95 483.20 0.00 0.00 0.00 0.00 0.00 4,721.00 6,944.00 8,510.00 3,100.15 5,375.33 425.11 16,685.79 760.95 100.00 1,936.91 56,641.00 83,339.00 102,065.00 0.00 25,531.51 96.14 0.00 1,072.90 82.12 0.00 15,233.67 56.30 0.00 4,751.70 48.44 0.00 43.04 99.14 0.00 500.00 0.00 0.00 6,175.62 92.73 0.00 100.00 98.30 0.00 -2,671.02 103.23 0.00 -1,411.09 132.73 0.00 49,326.33 94.49 0.00 5,675.02 65.77 0.00 -498.98 127.72 0.00 5,176.04 71.84 0.00 -100.15 103.34 0.00 1,764.67 75.28 0.00 1,174.89 26.57 0.00 -174.79 101.06 0.00 2,239.05 25.37 0.00 275.00 26.67 0.00 4,813.09 28.69 0.00 0.00 100.00 0.00 0.00 100.00 0.00 0.00 100.00 Page: 22 expstat.rpt Expenditure Status Report 07/21/2004 4:14PM CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 23 110 Parking Fund Account Number Total Materials/Supplies/Other 3302-4900 Depreciation 3302-4901Depreciation/Mach/Equip • 3302-4903 Depreciation/Bldgs Total Depreciation 3302-5400 Equipment/Fumiture 3302-5401 Equip -Less Than $1,000 Total Equipment/Fumiture 3302-9000 Infrastructure 3302-9001 Parking Meters - Infrastructure Total Infrastructure Total Community Services 8140 11th PI Street Parking Imp 8140-4200 Contract Services 8140-4201 Contract Serv/Private Total 11th PI Street Parking Imp Total Parking Fund • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 280,421.00 20,902.15 270,429.24 0.00 9,991.76 96.44 1,705.00 0.00 0.00 0.00 1,705.00 0.00 1,185.00 0.00 0.00 0.00 1,185.00 0.00 2,890.00 0.00 0.00 0.00 2,890.00 0.00 500.00 0.00 160.95 0.00 339.05 32.19 500.00 0.00 160.95 0.00 339.05 32.19 25,967.00 0.00 26,585.63 0.00 -618.63 102.38 25,967.00 0.00 26,585.63 0.00 -618.63 102.38 1,222,800.00 89,201.63 1,155,695.45 0.00 67,104.55 94.51 9,592.00 9,592.00 2,965,255.00 0.00 0.00 239,562.43 0.00 0.00 2,855,023.38 0.00 0.00 7,722.41 9,592.00 9,592.00 102.509.21 0.00 0.00 96.54 Page: 23 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/3012004 Page: 24 115 State Gas Tax Fund Account Number 1299 Interfund Transfers Out �2994-Materials/Supplies/Other 3OO • 99-4399 Operating Transfers Out Total State Gas Tax Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 355,488.00 355,488.00 29,624.00 29,624.00 355,488.00 0.00 0.00 100.00 355,488.00 0.00 0.00 100.00 Page: 24 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 25 117 AB939 Fund Account Number 5301 Source Redctn/Recycle Element 5301-4100 Personal Services 5301-4102Regular Salaries •5301-4111 Accrual Cash In 5301-4180 Retirement 5301-4188 Employee Benefits 5301-4189 Medicare Benefits Total Personal Services 5301-4200 Contract Services 5301-4201 Contract Serv/Private Total Contract Services 5301-4300 Materials/Supplies/Other 5301-4305 Office Oper Supplies Total Materials/Supplies/Other 5301-5400 Equipment/Fumiture 5301-5499 Non -Capitalized Assets Total Equipment/Fumiture Total AB939 Fund • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 19,854.00 1,274.00 1,443.00 2,600.00 288.00 25,459.00 30,000.00 30,000.00 1,500.00 1,500.00 156,560.00 156,560.00 213,519.00 1,652.99 984.77 122.22 233.48 38.81 3,032.27 20,171.53 1,678.24 1,491.00 2,773.51 323.86 26,438.14 0.00 0.00 0.00 0.00 0.00 0.00 -317.53 101.60 -404.24 131.73 -48.00 103.33 -173.51 106.67 -35.86 112.45 -979.14 103.85 0.00 0.00 0.00 30,000.00 0.00 0.00 0.00 0.00 30,000.00 0.00 0.00 0.00 0.00 1,500.00 0.00 0.00 0.00 0.00 1,500.00 0.00 10,021.27 85,750.68 20,809.32 50,000.00 68.06 10,021.27 85,750.68 20,809.32 50,000.00 68.06 13,053.54 112,188.82 20,809.32 80,520.86 62.29 Page: 25 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 26 119 Compensated Absences Fund Adjusted Year-to-date Year-to-date Prct Account Number Appropriation Expenditures Expenditures Encumbrances Balance Used 1299 Interfund Transfers Out 299-4300 Materials/Supplies/Other 99-4399 Operating Transfers Out Total Materials/Supplies/Other Total Compensated Absences Fund • 148,972.00 148,972.00 148,972.00 12,418.00 12,418.00 12,418.00 148,972.00 148,972.00 148,972.00 0.00 0.00 0.00 100.00 0.00 100.00 0.00 0.00 100.00 Page: 26 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 27 120 County Gas Tax Fund Account Number • 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Transfers Out Total Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 0.00 0.00 0.00 0.00 205.19 205.19 0.00 0.00 -205.19 0.00 -205.19 0.00 Total County Gas Tax Fund 0.00 0.00 205.19 0.00 -205.19 0.00 Page: 27 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 28 121 Prop A Open Space Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1299 Interfund Transfers Out 299-4300 Materials/Supplies/Other 99-4399 Operating Transfers Out 20,557.00 Total Interfund Transfers Out 20,557.00 8630 Pier Renovation/Phase 111 8630-4200 Contract Services 8630-4201 Contract Serv/Private Total Pier Renovation/Phase 111 Total Prop A Open Space Fund • 141,723.00 141,723.00 162,280.00 1,714.00 20,557.00 0.00 0.00 100.00 1,714.00 20,557.00 0.00 0.00 100.00 0.00 0.00 1,714.00 0.00 0.00 0.00 0.00 20,557.00 0.00 141,723.00 141,723.00 141,723.00 0.00 0.00 12.67 Page: 28 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 29 122 Tyco Fund Account Number 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Trsfr Out IIITotal Interfund Transfers Out 8108 2nd Street Resurfacing 8108-4200 Contract Services 8108-4201 Contract Serv/Private Total 2nd Street Resurfacing 8630 Pier Renovation/Phase Ill 8630-4100 Personal Services 8630-4102 Regular Salaries 8630-4180 Retirement 8630-4188 Employee Benefits 8630-4189 Fica Total Personal Services 8630-4200 Contract Services .630-4201 Contract Serv/Private Total Contract Services Total Pier Renovation/Phase Ill Total Tyco Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 275,000.00 275,000.00 385,400.00 385,400.00 32,822.00 2,459.00 3,313.00 476.00 39,070.00 1,442,429.00 1,442,429.00 1,481,499.00 2,141,899.00 22,913.00 22,913.00 275,000.00 0.00 0.00 100.00 275,000.00 0.00 0.00 100.00 0.00 5,484.00 0.00 379,916.00 0.00 5,484.00 0.00 379,916.00 9,168.28 686.70 1,101.50 132.94 11,089.42 0.00 0.00 11,089.42 34,002.42 20,585.35 1,541.68 2,704.06 298.48 25,129.57 0.00 0.00 25,129.57 305,613.57 1.42 1.42 0.00 12,236.65 62.72 0.00 917.32 62.70 0.00 608.94 81.62 0.00 177.52 62.71 0.00 13,940.43 64.32 0.00 1,442,429.00 0.00 0.00 1,442,429.00 0.00 0.00 1,456, 369.43 1.70 0.00 1,836,285.43 14.27 Page: 29 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 30 125 Park/Rec Facility Tax Fund Account Number 1299 Interfund Transfers Out 099-4300 Materials/Supplies/Other 99-4399 Operating Transfers Out Total Interfund Transfers Out 6101 Parks 6101-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 40,800.00 3,400.00 40,800.00 0.00 0.00 100.00 40,800.00 3,400.00 40,800.00 0.00 0.00 100.00 6101-4201 Contract Serv/Private 2,500.00 Total Parks 2,500.00 8507 Valley Park Improvements 8507-4200 Contract Services 8507-4201 Contract Serv/Private Total Valley Park Improvements 8630 Pier Renovation/Phase III 8630-4200 Contract Services .630-4201 Contract Serv/Private Total Pier Renovation/Phase III Total Park/Rec Facility Tax Fund 0.00 0.00 0.00 0.00 2,500.00 0.00 100.00 2,500.00 0.00 100.00 4,515.00 0.00 4,515.00 0.00 0.00 100.00 4,515.00 0.00 4,515.00 0.00 0.00 100.00 178,253.00 178,253.00 226,068.00 0.00 0.00 3,400.00 0.00 0.00 0.00 0.00 45,315.00 2,500.00 178,253.00 178,253.00 178,253.00 0.00 0.00 21.15 Page: 30 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 31 136 Lower Pier Admin Exp Fund Account Number 1219 Administrative Charges 1219-4200 Contract Services • 1219-4201 Contract Serv/Private Total Administrative Charges 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Transfers Out Total Interfund Transfers Out • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1,763.00 0.00 1,763.00 0.00 1,021.00 86.00 1,021.00 86.00 1,312.59 0.00 450.41 74.45 1,312.59 0.00 450.41 74.45 1,021.00 1,021.00 0.00 0.00 0.00 100.00 0.00 100.00 Total Lower Pier Admin Exp Fund 2,784.00 86.00 2,333.59 0.00 450.41 83.82 Page: 31 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 32 137 Myrtle Dist Admin Exp Fund Account Number 1219 Administrative Charges 19-4200 Contract Services 46 Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 19-4201 Contract Serv/Private 5,718.00 0.00 3,614.70 0.00 2,103.30 63.22 0.00 2,103.30 63.22 Total Administrative Charges 5,718.00 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Transfers Out Total Interfund Transfers Out • 2,959.00 2,959.00 0.00 3,614.70 242.00 242.00 2,959.00 2,959.00 0.00 0.00 0.00 100.00 0.00 100.00 Total Myrtle Dist Admin Exp Fund 8,677.00 242.00 6,573.70 0.00 2,103.30 75.76 Page: 32 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 33 138 Loma Dist Admin Exp Fund Account Number 1219 Administrative Charges 1219-4200 Contract Services 1219-4201 Contract Serv/Private •Total Administrative Charges - 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other 1299-4399 Operating Transfers Out Total Interfund Transfers Out • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 6,200.00 0.00 3,874.96 0.00 , 2,325.04 62.50 6,200.00 0.00 3,874.96 0.00 2,325.04 62.50 3,382.00 280.00 3,382.00 280.00 3,382.00 3,382.00 0.00 0.00 0.00 100.00 0.00 100.00 Total Loma Dist Admin Exp Fund 9,582.00 280.00 7,256.96 0.00 2,325.04 75.74 Page: 33 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 34 140 Community Dev Block Grant Account Number 4707 CDBG Program General Admin 007-4100 Personal Services Total Personal Services 4707-4200 Contract Services 4707-4201 Contract Serv/Private Total Contract Services 4707-4300 Materials/Supplies/Other 4707-4317 Training/Conference Total Materials/Supplies/Other Total CDBG Program General Admin 8147 Curb-Cut/Handicap Ramps 8147-4200 Contract Services 8147-4201 Contract Serv/Private Total Curb-Cut/Handicap Ramps 622 ADA Compliance, City Hall 0 8622-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 0.00 0.00 0.00 0.00 0.00 0.00 10,609.00 10,609.00 1,000.00 1,000.00 11,609.00 251,665.00 251,665.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,602.50 11,602.50 0.00 0.00 11,602.50 249,310.09 249,310.09 0.00 0.00 0.00 0.00 -993.50 109.36 -993.50 109.36 1,000.00 0.00 1,000.00 0.00 0.00 6.50 99.94 0.00 0.00 2,354.91 99.06 2,354.91 99.06 8622-4201 Contract Serv/Private 19,000.00 0.00 0.00 0.00 19,000.00 0.00 Total ADA Compliance, City Hall 19,000.00 0.00 0.00 0.00 19,000.00 0.00 8626 ADA Comp/Comm Ctr Theatre 8626-4200 Contract Services 8626-4201 Contract Serv/Private Total ADA Comp/Comm Ctr Theatre Total Community Dev Block Grant 342,335.00 342,335.00 624,609.00 6,430.50 6,430.50 6,430.50 260,007.63 260,007.63 520,920.22 67,641.70 67,641.70 14,685.67 95.71 14,685.67 95.71 67,641.70 36,047.08 94.23 Page: 34 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 35 145 Proposition A Fund Account Number 3401 Dial A Ride 3401-4100 Personal Services 3401-4102 Regular Salaries Total Personal Services 3401-4200 Contract Services 3401-4251 Contract Service/Govt Total Contract Services 3401-4300 Materials/Supplies/Other 3401-4305 Office Oper Supplies Total Materials/Supplies/Other Total Dial A Ride 3403 Bus Pass Subsidy 3403-4200 Contract Services 3403-4251 Contract Service/Govt Total Bus Pass Subsidy 3404 Dial -A -Taxi Program •404-4200 Contract Services 3404-4201 Contract Serv/Private Total Dial -A -Taxi Program 3408 Commuter Express 3408-4100 Personal Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 32,235.00 32,235.00 217,094.00 217,094.00 850.00 850.00 250,179.00 2,424.78 30,529.29 0.00 1,705.71 94.71 2,424.78 30,529.29 0.00 1,705.71 94.71 52,892.20 162,435.54 0.00 54,658.46 74.82 52,892.20 162,435.54 0.00 54,658.46 74.82 0.24 10.80 0.00 839.20 1.27 0.24 10.80 0.00 839.20 1.27 55,317.22 192,975.63 0.00 57,203.37 77.14 1,200.00 76.00 744.00 0.00 456.00 62.00 1,200.00 76.00 744.00 0.00 456.00 62.00 25,000.00 2,750.20 29,314.40 0.00 -4,314.40 117.26 25,000.00 2,750.20 29,314.40 0.00 -4,314.40 117.26 3408-4102 Regular Salaries 1,365.00 102.38 1,265.62 0.00 99.38 92.72 Total Personal Services 1,365.00 102.38 1,265.62 0.00 99.38 92.72 Page: 35 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 36 145 Proposition A Fund Account Number 3408-4200 Contract Services 408-4251 Contract Service/Govt Total Contract Services Total Commuter Express 3409 Recreation Transportation 3409-4100 Personal Services 3409-4102 Regular Salaries Total Personal Services 3409-4200 Contract Services 3409-4201 Contract Serv/Private Total Contract Services Total Recreation Transportation Total Proposition A Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 9,104.00 9,104.00 10,469.00 0.00 0.00 0.00 0.00 102.38 1,265.62 2,842.00 181.00 2,842.00 181.00 21,400.00 21,400.00 24,242.00 311,090.00 0.00 0.00 9,104.00 0.00 9,104.00 0.00 0.00 9,203.38 12.09 1,647.87 0.00 1,194.13 57.98 1,647.87 0.00 1,194.13 57.98 2,139.36 14,458.62 0.00 6,941.38 67.56 2,139.36 14,458.62 0.00 6,941.38 67.56 2,320.36 16,106.49 0.00 8,135.51 66.44 60,566.16 240,406.14 0.00 70,683.86 77.28 Page: 36 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 37 146 Proposition C Fund Account Number 4208 Pavement Management Study 4208-4200 Contract Services 4208-4201 Contract Serv/Private 111 Total Pavement Management Study 8174 Artesia Blvd Rehabilitation 8174-4200 Contract Services 8174-4201 Contract Serv/Private Total Artesia Blvd Rehabilitation Total Proposition C Fund • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 22,000.00 0.00 15,080.00 4,770.00 2,150.00 90.23 22,000.00 0.00 15,080.00 4,770.00 2,150.00 90.23 28,270.00 28,270.00 50,270.00 0.00 0.00 0.00 28,269.00 28,269.00 43,349.00 0.00 0.00 1.00 100.00 1.00 100.00 4,770.00 2,151.00 95.72 Page: 37 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 38 150 Grants Fund Account Number 2101 Police Department (OJP Equip Grant) �0154-Equipment/Fumiture 00 e 01-5401 Equip -Less Than $1,000 Total Police Department (OJP Equip Grant) 2109 State Homeland Sec Grant/Police 2109-5400 Equipment/Fumiture 2109-5401 Equip -Less Than $1,000 Total State Homeland Sec Grant/Police 2112 Local Law Enf Block Grant (LLEBG) Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1,000.00 0.00 962.82 0.00 37.18 96.28 1,000.00 0.00 962.82 0.00 37.18 96.28 18,490.00 0.00 18,411.46 63.07 15.47 99.92 18,490.00 0.00 18,411.46 63.07 15.47 99.92 2112-5400 Equipment/Fumiture 2112-5402 Equip -More Than $1,000 11,450.00 0.00 0.00 2,182.21 9,267.79 19.06 Total Local Law Enf Block Grant (LLEBG) 11,450.00 0.00 0.00 2,182.21 9,267.79 19.06 2201 Fire Department (OJP Equip Grant) 2201-5400 Equipment/Fumiture *201-5401 Equip -Less Than $1,000 3,562.00 0.00 3,520.00 0.00 42.00 98.82 Total Fire Department (OJP Equip Grant) 3,562.00 0.00 3,520.00 0.00 42.00 98.82 2203 State Homeland Sec Grant/Fire 2203-5400 Equipment/Fumiture 2203-5401 Equip -Less Than $1,000 7,193.00 Total State Homeland Sec Grant/Fire 7,193.00 2204 Assistance to Firefighters Fed Grant 2204-5400 Equipment/Fumiture 1,035.68 6,442.92. 0.00 750.08 89.57 1,035.68 6,442.92 0.00 750.08 89.57 Page: 38 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 39 150 Grants Fund Account Number 2204-5402 Equip -More Than $1,000 Total Assistance to Firefighters Fed Grant 3102 Sewers/Beverage Recycle Grant •3102-4200 Contract Services 3102-4201 Contract Serv/Private Total Sewers/Beverage Recycle Grant 8630 Pier Renovation/Phase III 8630-4200 Contract Services 8630-4201 Contract Serv/Private Total Pier Renovation/Phase Ill Total Grants Fund • Adjusted Appropriation 47,700.00 47,700.00 11,507.00 11,507.00 324,000.00 324,000.00 424,902.00 Year-to-date Expenditures Expenditures 0.00 0.00 1,008.75 1,008.75 0.00 0.00 0.00 0.00 4,431.39 4,431.39 0.00 0.00 Year-to-date Encumbrances 47,700.00 47,700.00 0.00 0.00 0.00 0.00 2,044.43 33,768.59 49,945.28 Prct Balance Used 0.00 100.00 0.00 100.00 7,075.61 38.51 7,075.61 38.51 324,000.00 0.00 324,000.00 0.00 341,188.13 19.70 Page: 39 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 40 151 Ofc of Traffic Sfty Grant Fund Account Number 2108 Be Street Smart Hermosa Grant Prog Personal Services •1084100 Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 08-4106 Regular Overtime 14,644.00 0.00 Total Personal Services 14,644.00 0.00 2108-4300 Materials/Supplies/Other Total Materials/Supplies/Other 0.00 0.00 2108-5400 Equipment/Furniture 2108-5401 Equip -Less Than $1,000 Total Equipment/Fumiture • 14,643.38 0.00 0.62 100.00 14,643.38 0.00 0.62 100.00 0.00 0.00 0.00 0.00 797.00 0.00 796.19 0.00 0.81 99.90 797.00 0.00 796.19 0.00 0.81 99.90 Total Ofc of Traffic Sftv Grant Fund 15,441.00 0.00 15,439.57 0.00 1.43 99.99 Page: 40 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 41 • 152 Air Quality Mgmt Dist Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 3701 Emission Control 3701-4300 Materials/Supplies/Other 3701-4327 AQMD Incentives 1,000.00 • Total Air Quality Mgmt Dist Fund 1,000.00 85.00 730.00 0.00 270.00 73.00 85.00 730.00 0.00 270.00 73.00 Page: 41 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 42 153 Supp Law Enf Sery Fund (SLESF) Account Number 1299 Interfund Transfers Out ili99-4300 Materials/Supplies/Other 99-4399 Operating Trsfr Out Total Interfund Transfers Out 2106 C.O.P.S. Program 2106-4200 Contract Services 2106-4201 Contract Sery/Private 2106-4251 Contract Services/Govt Total Contract Services 2106-5400 Equipment/Fumiture 2106-5401 Equip -Less Than $1,000 2106-5402 Equip -More Than $1,000 2106-5403 Vehicles Total Equipment/Furniture 2106-5600 Buildings/Improvements 022106-5601 Buildings 106-5602 Imprvmnts Other Than Bldgs Total Buildings/Improvements Total C.O.P.S. Program Total Supp Law Enf Sery Fund (SLESF) Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 21,227.00 2,355.00 21,227.00 2,355.00 30,000.00 12,000.00 42,000.00 12,000.00 83,613.00 9,622.00 105,235.00 2,025.00 0.00 2,025.00 149,260.00 170,487.00 0.00 0.00 0.00 21,227.00 0.00 0.00 100.00 21,227.00 0.00 0.00 100.00 3,115.42 5,644.01 8,759.43 0.00 0.00 0.00 26,884.58 10.38 6,355.99 47.03 33,240.57 20.86 970.92 2,773.92 1,078.12 8,147.96 32.10 0.00 67,667.08 0.00 15,945.92 80.93 8,000.78 8,353.18 1,975.70 -706.88 107.35 8,971.70 78,794.18 3,053.82 23,387.00 77.78 0.00 2,020.00 0.00 5.00 99.75 0.00 980.00 0.00 -980.00 0.00 0.00 3,000.00 0.00 -975.00 148.15 8,971.70 90,553.61 3,053.82 55,652.57 62.71 11,326.70 111,780.61 3,053.82 55.652.57 67.36 Page: 42 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 43 154 CA Law Enf Equip Prog Fund (CLEEP) Account Number 2107 High Technology Grant 2107-4200 Contract Services Total Contract Services •2107-5400 Equipment/Furniture 2107-5401 Equip -Less Than $1,000 2107-5402 Equip -More Than $1,000 Total CA Law Enf Equip Prod Fund (CLEEP) Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 0.00 0.00 0.00 0.00 0.00 0.00 116.00 42,665.00 42,781.00 0.00 0.00 0.00 489.30 6,713.13 7,202.43 0.00 6,330.39 6,330.39 -373.30 29,621.48 29,248.18 421.81 30.57 31.63 Page: 43 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 44 156 Taskforce for Reg Autotheft Prev (TRAP) Account Number 2115 T.R.A.P. Taskforce �15.4100 Personal Services 15-4102 Regular Salaries 2115-4105 Special Duty Pay 2115-4106 Regular Overtime 2115-4180 Retirement 2115-4187 Uniform Allowance 2115-4188 Employee Benefits 2115-4189 Medicare Benefits Total Personal Services 2115-4300 Materials/Supplies/Other 2115-4326 Prior Year Expense Total Materials/Supplies/Other Total Taskforce for Req Autotheft Prev (TRAP) • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 64,424.00 5,112.00 38,000.00 27,401.00 700.00 11,574.00 989.00 148,200.00 0.00 0.00 148,200.00 5,201.92 425.62 730.50 2,283.40 . 58.34 915.88 93.06 9,708.72 0.00 0.00 9,708.72 62,098.37 5,107.44 2,995.00 27,270.41 700.08 10,761.76 1,041.54 109,974.60 -97.40 -97.40 109,877.20 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,325.63 96.39 4.56 99.91 35,005.00 7.88 130.59 99.52 -0.08 100.01 812.24 92.98 -52.54 105.31 38,225.40 74.21 97.40 0.00 97.40 0.00 0.00 38,322.80 74.14 Page: 44 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 45 160 Sewer Fund Account Number 3102 Sewers/Storm Drains 3102-4100 Personal Services 3102-4102 Regular Salaries 102-4106 Regular Overtime 3102-4111 Accrual Cash In 3102-4180 Retirement 3102-4188 Employee Benefits 3102-4189 Medicare Benefits Total Personal Services 3102-4200 Contract Services 3102-4201 Contract Serv/Private 3102-4251 Contract Service/Govt Total Contract Services 3102-4300 Materials/Supplies/Other 3102-4303 Utilities 3102-4309 Maintenance Materials 3102-4395 Equip Replacement Charges 3102-4396 Insurance User Charges Total Materials/Supplies/Other .102-5400 Equipment/Fumiture Total Equipment/Fumiture Total Sewers/Storm Drains 3105 Used Oil Block Grant 3105-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 236,763.00 4,800.00 2,929.00 17,646.00 33,428.00 2,726.00 298,292.00 226,298.00 20,500.00 246,798.00 1,700.00 12,600.00 36,209.00 53,682.00 104,191.00 0.00 649,281.00 15,515.96 210,387.55 305.43 3,496.74 1,713.97 9,290.88 1,153.64 15,672.47 2,490.27 31,533.53 238.91 2,676.49 21,418.18 273,057.66 28,963.80 182,706.49 2,908.70 15,421.20 31,872.50 198,127.69 135.32 907.69 598.96 11,732.15 3,022.00 36,209.00 4,468.00 53,682.00 8,224.28 102,530.84 0.00 0.00 61,514.96 573,716.19 ' 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,618.45 4,953.86 6,572.31 0.00 0.00 0.00 0.00 0.00 26,375.45 88.86 1,303.26 72.85 -6,361.88 317.20 1,973.53 88.82 1,894.47 94.33 49.51 98.18 25,234.34 91.54 41,973.06 81.45 124.94 99.39 42,098.00 82.94 792.31 53.39 867.85 93.11 0.00 100.00 0.00 100.00 1,660.16 98.41 0.00 0.00 0.00 68,992.50 89.37 6,572.31 3105-4201 Contract Serv/Private 6,088.00 262.50 6,087.11 0.00 0.89 99.99 Total Used Oil Block Grant 6,088.00 262.50 6,087.11 0.00 0.89 99.99 Page: 45 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 46 160 Sewer Fund Account Number 8189 St Improvements/Myrtle Area 189-4200 Contract Services 89-4201 Contract Serv/Private Total St Improvements/Myrtle Area 8192 Various Street Improvements 8192-4100 Personal Services 8192-4102 Regular Salaries 8192-4180 Retirement 8192-4188 Employee Benefits 8192-4189 Medicare Benefits Total Personal Services 8192-4200 Contract Services 8192-4201 Contract Serv/Private Total Contract Services Total Various Street Improvements • 8409 Manhole Repairs 8409-4200 Contract Services 8409-4201 Contract Serv/Private Total Manhole Repairs 8410 Sewer Rehab/Loma District 8410-4100 Personal Services 8410-4102 Regular Salaries 8410-4180 Retirement 8410-4188 Employee Benefits 8410-4189 Medicare Benefits Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 37,000.00 14,472.00 32,040.00 3,560.00 1,400.00 96.22 37,000.00 14,472.00 32,040.00 3,560.00 1,400.00 96.22 15,226.00 1,140.00 1,537.00 223.00 18,126.00 542,018.00 542,018.00 560,144.00 250,264.00 250,264.00 6,826.00 511.00 689.00 100.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 11,409.36 854.50 837.45 165.43 13,266.74 521,492.04 521,492.04 534,758.78 0.00 0.00 0.00 0.00 0.00 -13,479.82 -13,479.82 -13,479.82 3,816.64 285.50 699.55 57.57 4,859.26 74.93 74.96 54.49 74.18 73.19 34,005.78 93.73 34,005.78 93.73 38,865.04 93.06 1,250.00 5,948.56 0.00 244,315.44 1,250.00 5,948.56 0.00 244,315.44 0.00 0.00 0.00 0.00 5,652.35 428.04 531.67 82.90 0.00 0.00 0.00 0.00 2.38 2.38 1,173.65 82.81 82.96 83.77 157.33 77.17 17.10 82.90 Page: 46 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 47 160 Sewer Fund Adjusted Year-to-date Year-to-date Prct Account Number Appropriation Expenditures Expenditures Encumbrances Balance Used Total Personal Services 8,126.00 0.00 6,694.96 0.00 1,431.04 82.39 8410-4200 Contract Services 8410-4201 Contract Serv/Private 329,205.00 0.00 .290,376.88 16,049.00 22,779.12 93.08 III Total Contract Services 329,205.00 0.00 290,376.88 16,049.00 22,779.12 93.08 Total Sewer Rehab/Loma District 337,331.00 0.00 297,071.84 16,049.00 24,210.16 92.82 8411 Sewer Rehab/Recons-Trgt Area 1 8411-4100 Personal Services 8411-4102 Regular Salaries 8411-4180 Retirement 8411-4188 Employee Benefits 8411-4189 Medicare Benefits Total Personal Services 8411-4200 Contract Services 8411-4201 Contract Serv/Private Total Contract Services Total Sewer Rehab/Recons-Trgt Area 1 8412 Sewer Rehab/Recons-Trgt Area 2 .12-4200 Contract Services 8412-4201 Contract Serv/Private Total Sewer Rehab/Recons-Trgt Area 2 8418 Upgrade of Pump Stations Citywide 8418-4100 Personal Services 8418-4102 Regular Salaries 8418-4180 Retirement 8418-4188 Employee Benefits 6,826.00 511.00 689.00 100.00 8,126.00 374,665.00 374,665.00 382,791.00 80,000.00 80,000.00 8,439.00 632.00- 851.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,759.63 431.43 306.25 83.52 6,580.83 263,996.64 263,996.64 270,577.47 0.00 0.00 0.00 0.00 0.00 36,673.22 36,673.22 , 36,673.22 1,066.37 79.57 382.75 16.48 1,545.17 73,995.14 73,995.14 75,540.31 84.38 84.43 44.45 83.52 80.98 80.25 80.25 80.27 0.00 3,709.50 0.00 76,290.50 4.64 0.00 3,709.50 0.00 76,290.50 4.64 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 8,439.00 632.00 851.00 0.00 0.00 0.00 Page: 47 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 48 160 Sewer Fund Account Number 8418-4189 Fica Total Personal Services It18-4200 Contract Services 18-4201 Contract Serv/Private Total Contract Services Total Upgrade of Pump Stations Citywide 8630 Pier Renovation/Phase Ill 8630-4100 Personal Services 8630-4102 Regular Salaries 8630-4180 Retirement 8630-4188 Employee Benefits 8630-4189 Fica Total Personal Services 8630-4200 Contract Services 8630-4201 Contract Serv/Private • Total Total Total Contract Services Pier Renovation/Phase Ill Sewer Fund Adjusted Appropriation Year-to-date Expenditures Expenditures Year-to-date Encumbrances Prct Balance Used 124.00 0.00 0.00 0.00 124.00 0.00 10,046.00 0.00 0.00 0.00 10,046.00 0.00 289,954.00 289,954.00 300,000.00 19,426.00 1,454.00 1,961.00 285.00 23,126.00 176,874.00 176,874.00 200,000.00 2,802,899.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 77,499.46 0.00 0.00 0.00 10,561.00 791.08 2,120.18 153.13 13,625.39 0.00 0.00 13,625.39 1,737,534.84 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 49,374.71 289,954.00 289,954.00 300,000.00 8,865.00 662.92 -159.18 131.87 9,500.61 176,874.00 176,874.00 186,374.61 1,015.989.45 0.00 0.00 0.00 54.37 54.41 108.12 53.73 58.92 0.00 0.00 6.81 63.75 Page: 48 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 49 170 Asset Seizure/Forft Fund Account Number 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1299-4399 Operating Transfers Out 40,500.00 111 Total Interfund Transfers Out 40,500.00 2103 L. A. Impact 2103-5400 Equipment/Fumiture 2103-5403 Vehicles Total L. A. Impact 16,000.00 3,375.00 40,500.00 0.00 0.00 100.00 3,375.00 40,500.00 0.00 0.00 100.00 16,000.00 16,000.00 16,000.00 16,000.00 16,000.00 0.00 0.00 0.00 100.00 0.00 100.00 Total Asset Seizure/Forft Fund 56,500.00 19,375.00 56,500.00 0.00 0.00 100.00 Page: 49 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 50 . 180 Fire Protection Fund Account Number 1299 Interfund Transfers Out �99-4300 Materials/Supplies/Other 99-4399 Operating Transfers Out Total Interfund Transfers Out 2202 Fire Protection 2202-5400 Equipment/Furniture 2202-5401 Equip -Less Than $1,000 2202-5402 Equip -More Than $1,000 Total Fire Protection 8610 Fire Sta Upstairs Remodel/Addn 8610-4200 Contract Services 8610-4201 Contract Serv/Private Total Fire Sta Upstairs Remodel/Addn Total Fire Protection Fund • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 125,749.00 125,749.00 5,179.00 78,074.00 83,253.00 121,717.00 121,717.00 330,719.00 10,480.00 10,480.00 0.00 7,009.90 7,009.90 4,383.52 4,383.52 21,873.42 125,749.00 125,749.00 1,624.60 40,153.16 41,777.76 25,109.73 25,109.73 192,636.49 0.00 0.00 0.00 3,484.52 3,484.52 8,655.92 8,655.92 12,140.44 0.00 100.00 0.00 100.00 3,554.40 34,436.32 37,990.72 87,951.35 87,951.35 125,942.07 31.37 55.89 54.37 27.74 27.74 61.92 Page: 50 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 51 199 Contingency Fund Account Number 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other :299-4398 Resdl Equity Trsfr Out • Total Contingency Fund Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 368,470.00 368,470.00 0.00 368,470.00 0.00 0.00 100.00 0.00 368,470.00 0.00 0.00 100.00 Page: 51 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 52 301 Capital Improvement Fund Account Number 8109 Concrete Road ConstructionNar locations 09-4200 Contract Services 40 09-4201 Contract Serv/Private Total Concrete Road ConstructionNar locations 8110 Slurry SealNarious Locations 8110-4200 Contract Services 8110-4201 Contract Serv/Private Total Slurry SealNarious Locations 8185 5th Ardmore/Prospct;Gentry/3rd-Prospct 8185-4100 Personal Services Total Personal Services 8185-4200 Contract Services 8185-4201 Contract Serv/Private Total 5th Ardmore/Prospct;Gentry/3rd-Prospct 0188 St Imp/10th Btwn Ocean/Prospct 8188-4200 Contract Services 8188-4201 Contract Serv/Private Total St Imp/10th Btwn Ocean/Prospct 8189 St Improvements/Myrtle Area 8189-4100 Personal Services 8189-4102 Regular Salaries 8189-4180 Retirement 8189-4188 Employee Benefits Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 100,000.00 100,000.00 120,000.00 120,000.00 0.00 0.00 0.00 0.00 0.00 0.00. 100,000.00 100,000.00 0.00 0.00 0.00 120,000.00 0.00 0.00 0.00 120,000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 212,000.00 212,000.00 20,000.00 20,000.00 51,399.00 3,859.00 3,899.00 115,253.70 115,253.70 172,503.55 172,503.55 23,577.30 15,919.15 23,577.30 15,919.15 0.00 0.00 0.00 20,000.00 0.00 0.00 0.00 20,000.00 0.00 0.00 0.00 46,697.17 3,497.57 5,787.60 0.00 0.00 0.00 4,701.83 361.43 -1,888.60 92.49 92.49 0.00 0.00 90.85 90.63 148.44 Page: 52 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 53 301 Capital Improvement Fund Account Number 8189-4189 Medicare Benefits Total Personal Services 8189-4200 Contract Services •8189-4201 Contract Serv/Private Total Contract Services Total St Improvements/Myrtle Area 8193 St ImprovementsNarious #4 8193-4100 Personal Services Total Personal Services 8193-4200 Contract Services 8193-4201 Contract Serv/Private Total St ImprovementsNarious #4 8507 Valley Park Improvements 8507-4200 Contract Services 8507-4201 Contract Serv/Private Total Valley Park Improvements 622 ADA Compliance, City Hall 8622-4200 Contract Services 8622-4201 Contract Serv/Private Total ADA Compliance, City Hall 8630 Pier Renovation/Phase III 8630-4100 Personal Services 8630-4102 Regular Salaries Adjusted Appropriation 843.00 60,000.00 609,970.00 609,970.00 669,970.00 0.00 266,530.00 266,530.00 5,571.00 5,571.00 7,850.00 7,850.00 Year-to-date Expenditures Expenditures 0.00 0.00 43,343.87 43,343.87 43,343.87 0.00 0.00 0.00 0.00 0.00 1,983.60 1,983.60 8,331.00 0.00 677.20 56,659.54 387,778.40 387,778.40 444,437.94 0.00 0.00 0.00 5,445.08 5,445.08 5,846.20 5,846.20 5,579.43 Year-to-date Encumbrances 0.00 0.00 91,200.06 91,200.06 91,200.06 0.00 0.00 0.00 0.00 0.00 220.40 220.40 0.00 Prct Balance Used 165.80 80.33 3,340.46 94.43 130,991.54 78.52 130,991.54 78.52 134,332.00 79.95 0.00 0.00 266,530.00 266,530.00 0.00 0.00 125.92 97.74 125.92 97.74 1,783.40 77.28 1,783.40 77.28 2,751.57 66.97 Page: 53 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 54 301 Capital Improvement Fund Account Number 8630-4180 Retirement 8630-4188 Employee Benefits 030-4189 Fica Total Personal Services 8630-4200 Contract Services 8630-4201 Contract Serv/Private Total Contract Services Total Pier Renovation/Phase Ill 8634 Exterior Painting/City Bldgs 8634-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 624.00 842.00 121.00 9,918.00 186,920.00 186,920.00 196,838.00 0.00 0.00 0.00 0.00 13,435.00 13,435.00 13,435.00 417.96 402.23 80.90 6,480.52 40,416.42 40,416.42 46,896.94 0.00 0.00 0.00 0.00 87,928.43 87,928.43 206.04 439.77 40.10 3,437.48 66.98 47.77 66.86 65.34 58,575.15 68.66 58,575.15 68.66 87,928.43 62,012.63 68.50 8634-4201 Contract Serv/Private 14,500.00 0.00 0.00 0.00 14,500.00 0.00 Total Exterior Painting/City Bldgs 14,500.00 0.00 0.00 0.00 14,500.00 0.00 8635 Community Center Shed Demolition 8635-4200 Contract Services 8635-4201 Contract Serv/Private 31,000.00 0.00 0.00 0.00 31,000.00 Total Community Center Shed Demolition 31,000.00 0.00 0.00 0.00 31,000.00 Total Capital Improvement Fund 1,644,259.00 174,016.17 675,129.71 202,926.19 766,203.10 0.00 0.00 53.40 Page: 54 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 55 307 Myrtle Util Undrgrnd Impr Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 8182 Util Undrgmd/Myrtle Ave 8182-4200 Contract Services 8182-4201 Contract Serv/Private 5,440.00 0.00 5,439.42 0.00 0.58 99.99 Total Myrtle Util Undrgrnd Impr Fund 5,440.00 0.00 5,439.42 0.00 0.58 99.99 • Page: 55 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 56 309 Bayview Dr Utility Undergrnding District Account Number 8104 Bayview Dr Underground Dist Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 0 04-4200 Contract Services 04-4201 Contract Serv/Private 8,000.00 0.00 8,000.00 0.00 0.00 100.00 Total Bayview Dr Utility Undergrnding District 8,000.00 0.00 8,000.00 0.00 0.00 100.00 • Page: 56 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 57 310 Bonnie Brae Utility Undergrounding Dist Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 8105 Bonnie Brae Underground Dist 8105-4200 Contract Services Total Bonnie Brae Utility Undergrounding Dist 0.00 0.00 0.00 0.00 0.00 0.00 • • Page: 57 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 58 311 Beach Dr Utility Undergrounding Dist Account Number 8106 Beach Drive Underground Dist 06-4200 Contract Services 0 • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 06-4201 Contract Serv/Private 20,276.00 Total Beach Dr Utility Undergrounding Dist 20,276.00 1,414.26 15,276.25 0.00 4,999.75 75.34 1,414.26 15,276.25 0.00 4,999.75 75.34 Page: 58 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 59 312 Prospect Utility Undergrnding Dist Fund Account Number 8111 Prospect Undergrounding District 8111-4200 Contract Services 8111-4201 Contract Serv/Private • Total Prospect Utility Undergrnding Dist Fund • Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 200,000.00 200,000.00 0.00 200,000.00 0.00 0.00 100.00 0.00 200,000.00 0.00 0.00 100.00 Page: 59 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 60 705 Insurance Fund Account Number 1209 Liability Insurance 09-4100 Personal Services 0 09-4102 Regular Salaries 1209-4111 Accrual Cash In 1209-4180 Retirement 1209-4188 Employee Benefits 1209-4189 Medicare Benefits Total Personal Services 1209-4200 Contract Services 1209-4201 Contract Serv/Private Total Contract Services 1209-4300 Materials/Supplies/Other 1209-4305 Office Oper Supplies 1209-4315 Membership 1209-4317 Conference/Training 1209-4324 Claims/Settlements Total Materials/Supplies/Other Total Liability Insurance 01210 Auto/Property/Bonds 1210-4200 Contract Services 1210-4201 Contract Serv/Private Total Contract Services 1210-4300 Materials/Supplies/Other 1210-4324 Claims/Settlements Total Materials/Supplies/Other Total Auto/Property/Bonds Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 40,355.00 2,556.00 2,944.00 5,635.00 598.00 52,088.00 290,000.00 290,000.00 500.00 345.00 3,200.00 350,000.00 354,045.00 696,133.00 50,640.00 50,640.00 10,000.00 10,000.00 60,640.00 3,173.71 0.00 231.18 474.01 47.13 3,926.03 1,000.00 1,000.00 3.31 0.00 0.00 59,597.55 59,600.86 64,526.89 40,351.09 871.72 2,943.91 5,633.72 611.35 50,411.79 292,742.00 292,742.00 134.77 155.00 0.00 234,319.63 234,609.40 577,763.19 0.00 3.91 99.99 0.00 1,684.28 34.10 0.00 0.09 100.00 0.00 1.28 99.98 0.00 -13.35 102.23 0.00 1,676.21 96.78 0.00 -2,742.00 100.95 0.00 -2,742.00 100.95 0.00 365.23 26.95 0.00 190.00 44.93 0.00 3,200.00 0.00 0.00 115,680.37 66.95 0.00 119,435.60 66.27 0.00 118,369.81 83.00 0.00 39,163.00 0.00 11,477.00 77.34 0.00 39,163.00 0.00 11,477.00 77.34 0.00 0.00 0.00 10,000.00 0.00 0.00 0.00 0.00 10,000.00 0.00 0.00 39,163.00 0.00 21,477.00 64.58 Page: 60 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 61 705 Insurance Fund Account Number 1215 Unemployment 1215-4100 Personal Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 1215-4186 Unemployment Claims 10,000.00 -80.00 612.00 0.00 9,388.00 6.12 Total Unemployment 10,000.00 -80.00 612.00 0.00 9,388.00 •6.12 1217 Workers' Compensation 1217-4100 Personal Services 1217-4102 Regular Salaries 1217-4111 Accrual Cash In 1217-4180 Retirement 1217-4188 Employee Benefits 1217-4189 Medicare Benefits Total Personal Services 1217-4200 Contract Services 1217-4201 Contract Serv/Private 1217-4251 Contract Service/Govt Total Contract Services 1217-4300 Materials/Supplies/Other 217-4305 Office Oper Supplies 17-4317 Training/Conference 1217-4324 Claims/Settlements Total Materials/Supplies/Other Total Workers' Compensation Total Insurance Fund 40,355.00 2,556.00 2,944.00 5,636.00 598.00 52,089.00 88,500.00 5,000.00 93,500.00 500.00 2,500.00 500,000.00 503,000.00 648,589.00 1,415,362.00 3,173.77 0.00 231.18 474.02 47.13 3,926.10 0.00 0.00 0.00 3.88 931.70 57,742.25 58,677.83 62,603.93 127,050.82 40,351.61 871.74 2,943.93 5,633.82 611.36 50,412.46 79,084.00 0.00 79,084.00 36.88 931.70 748,248.19 749,216.77 878,713.23 1,496,251.42 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 3.39 1,684.26 0.07 2.18 -13.36 1,676.54 9,416.00 5,000.00 14,416.00 463.12 1,568.30 -248,248.19 -246,216.77 -230,124.23 -80,889.42 99.99 34.11 100.00 99.96 102.23 96.78 89.36 0.00 84.58 7.38 37.27 149.65 148.95 135.48 105.72 Page: 61 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 62 715 Equipment Replacement Fund Account Number 1101 City Council �01-4900 Depreciation Total City Council 1202 Finance Administration 1202-4300 Materials/Supplies/Other 1202-4310 Motor Fuels And Lubes 1202-4311 Auto Maintenance Total Materials/Supplies/Other 1202-4900 Depreciation 1202-4902 DepreciationNehicles Total Depreciation Total Finance Administration 1206 Information Systems 1206-4100 Personal Services gra206-4102 Regular Salaries 206-4111 Accrual Cash In 1206-4180 Retirement 1206-4188 Employee Benefits 1206-4189 Medicare Benefits Total Personal Services 1206-4200 Contract Services 1206-4201 Contract Serv/Private Total Contract Services 1206-4300 Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 0.00 0.00 0.00 0.00 0.00 0.00 76.00 370.00 446.00 2,205.00 2,205.00 0.00 0.00 0.00 0.00 0.00 22.80 41.60 64.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 53.20 30.00 328.40 11.24 381.60 14.44 2,205.00 0.00 2,205.00 0.00 2,651.00 0.00 64.40 0.00 2,586.60 2.43 113,856.00 3,156.00 8,528.00 9,488.00 1,650.00 136,678.00 9,488.00 0.00 710.64 863.30 137.56 11,199.50 113,856.00 2,408.49 8,527.72 9,949.88 1,685.68 136,427.77 0.00 0.00 0.00 0.00 0.00 0.00 0.00 100.00 747.51 76.31 0.28 100.00 -461.88 104.87 -35.68 102.16 250.23 99.82 137,165.00 6,752.80 88,392.21 20,268.75 28,504.04 79.22 137,165.00 6,752.80 88,392.21 20,268.75 28,504.04 79.22 Page: 62 , expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 63 715 Equipment Replacement Fund Account Number 1206-4304 Telephone 1206-4305 Office Oper Supplies 1206-4309 Maintenance Materials 1206-4315 Membership 41, 1206-4317 Conference/Training 206-4396 Insurance User Charges Total Materials/Supplies/Other 1206-4900 Depreciation 1206-4901 Depreciation/Mach/Equipment Total Depreciation 1206-5400 Equipment/Fumiture 1206-5401 Equip -Less Than $1,000 1206-5402 Equip -More Than $1,000 Total Equipment/Fumiture Total Information Systems 1208 General Appropriations 1208-4900 Depreciation 1208-4901 Depreciation/Mach/Equipment Total Depreciation *08-5400 Equipment/Fumiture 1208-5402 Equip -More Than $1,000 Total Equipment/Furniture Total General Appropriations 1299 Interfund Transfers Out 1299-4300 Materials/Supplies/Other Adjusted Appropriation 5,884.00 4,500.00 6,000.00 300.00 45,000.00 4,535.00 66,219.00 61,137.00 61,137.00 4,800.00 130,166.00 134,966.00 536,165.00 1,189.00 1,189.00 36,760.00 36,760.00 37,949.00 1299-4399 Operating Trsfr Out 63,901.00 Year-to-date Year-to-date Expenditures Expenditures Encumbrances 373.75 1.86 103.60 0.00 0.00 377.00 856.21 0.00 0.00 0.00 4,258.32 4,258.32 23,066.83 0.00 0.00 0.00 0.00 4,380.76 5,166.89 6,013.20 0.00 8,898.70 4,535.00 28,994.55 0.00 0.00 2,836.06 77,954.04 80,790.10 334,604.63 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 20,268.75 0.00 0.00 0.00 0.00 Prct Balance Used 1,503.24 -666.89 -13.20 300.00 36,101.30 0.00 37,224.45 74.45 114.82 100.22 0.00 19.77 100.00 43.79 61,137.00 0.00 61,137.00 0.00 1,963.94 52,211.96 54,175.90 181,291.62 59.08 59.89 59.86 66.19 1,189.00 0.00 1,189.00 0.00 36,760.00 0.00 36,760.00 0.00 0.00 0.00 0.00 37,949.00 0.00 5,326.00 63,901.00 0.00 0.00 100.00 Page: 63 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 64 715 Equipment Replacement Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used Total Interfund Transfers Out 63,901.00 5,326.00 63,901.00 0.00 0.00 100.00 2101 Police •1-4300 Materials/Supplies/Other 2101-4310 Motor Fuels And Lubes 2101-4311 Auto Maintenance Total Materials/Supplies/Other 2101-4900 Depreciation 2101-4901 Depreciation/Mach/Equipment 2101-4902 DepreciationNehicles Total Depreciation 2101-5400 Equipment/Fumiture 2101-5402 Equip -More Than $1,000 2101-5403 Vehicles Total Equipment/Fumiture Total Police 2201 Fire 0201-4200 Contract Services 2201-4201 Contract Serv/Private Total Contract Services 2201-4300 Materials/Supplies/Other 2201-4310 Motor Fuels And Lubes 2201-4311 Auto Maintenance Total Materials/Supplies/Other 2201-4900 Depreciation 34,000.00 35,000.00 69,000.00 18,698.00 146,892.00 165,590.00 32,583.00 143,450.00 176,033.00 410,623.00 30,770.00 30,770.00 10,645.00 8,002.00 18,647.00 235.71 4,015.65 4,251.36 0.00 0.00 0.00 0.00 50.88 50.88 4,302.24 39,531.23 39,457.71 78,988.94 0.00 0.00 0.00 29,081.92 43,925.23 73,007.15 151,996.09 0.00 971.09 971.09 0.00 0.00 .0.00 -5,531.23 116.27 -5,428.80 115.51 -10,960.03 115.88 18,698.00 0.00 146,892.00 0.00 165,590.00 0.00 0.00 3,501.08 89.25 0.00 99,524.77 30.62 0.00 103,025.85 41.47 971.09 257,655.82 37.25 0.00 0.00 0.00 30,770.00 0.00 0.00 0.00 0.00 30,770.00 0.00 1.00 1,327.51 1,328.51 7,089.07 5,059.62 12,148.69 0.00 568.31 568.31 3,555.93 66.60 2,374.07 70.33 5,930.00 68.20 2201-4901 Depreciation/Mach/Equipment 100.00 0.00 0.00 0.00 100.00 0.00 Page: 64 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 65 715 Equipment Replacement Fund Account Number 2201-4902 DepreciationNehicles Total Depreciation 2201-5400 Equipment/Furniture .201-5402 Equip -More Than $1,000 201-5403 Vehicles Total Equipment/Fumiture Total Fire 2601 Lighting/Landscaping/Medians 2601-4200 Contract Services 2601-4201 Contract Serv/Private Total Contract Services 2601-4300 Materials/Supplies/Other 2601-4310 Motor Fuels And Lubes 2601-4311 Auto Maintenance Total Materials/Supplies/Other 2601-4900 Depreciation 2601-4902 DepreciationNehicles Total Depreciation �01-5400 Equipment/Fumiture 2601-5403 Vehicles Total Equipment/Fumiture Total Lighting/Landscaping/Medians 3102 Sewers/Storm Drains 3102-4200 Contract Services Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 73,269.00 73,369.00 6,965.00 184,372.00 191,337.00 314,123.00 3,000.00 3,000.00 2,600.00 1,560.00 4,160.00 29,760.00 29,760.00 82,112.00 82,112.00 119,032.00 0.00 0.00 0.00 73,269.00 0.00 0.00 0.00 0.00 73,369.00 0.00 0.00 0.00 0.00 1,328.51 0.00 0.00 0.00 521.57 521.57 0.00 7,165.17 7,165.17 0.00 3,676.56 3,676.56 19,313.86 4,244.87 2,187.16 2,187.16 2,166.91 2,053.57 4,220.48 6,965.00 173,530.27 180,495.27 290,564.27 0.00 5.88 5.67 7.50 0.00 812.84 72.91 0.00 812.84 72.91 0.00 433.09 83.34 0.00 -493.57 131.64 0.00 -60.48 101.45 0.00 0.00 0.00 29,760.00 0.00 0.00 0.00 0.00 29,760.00 0.00 0.00 0.00 0.00 82,112.00 0.00 0.00 0.00 0.00 82,112.00 0.00 521.57 6,407.64 0.00 112,624.36 5.38 3102-4201 Contract Serv/Private 4,000.00 0.00 2,640.48 0.00 1,359.52 66.01 Page: 65 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 66 715 Equipment Replacement Fund Account Number Total Contract Services 3102-4300 Materials/Supplies/Other 2-4309 Maintenance Materials 102-4310 Motor Fuels And Lubes 3102-4311 Auto Maintenance Total Materials/Supplies/Other 3102-4900 Depreciation 3102-4902 DepreciationNehicles Total Depreciation Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 4,000.00 0.00 2,640.48 0.00. 1,359.52 66.01 2,000.00 1,800.00 2,300.00 6,100.00 0.00 1.00 1,587.04 1,588.04 248.54 914.64 2,231.82 3,395.00 0.00 0.00 0.00 0.00 1,751.46 12.43 885.36 50.81 68.18 97.04 2,705.00 55.66 20,392.00 0.00 0.00 0.00 20,392.00 0.00 20,392.00 0.00 0.00 0.00 20,392.00 0.00 Total Sewers/Storm Drains 30,492.00 1,588.04 6,035.48 0.00 24,456.52 19.79 3104 Traffic Safety/St. Maint. 3104-4300 Materials/Supplies/Other 3104-4310 Motor Fuels And Lubes 3104-4311 Auto Maintenance Total Materials/Supplies/Other 3104-4900 Depreciation •104-4902 DepreciationNehicles Total Depreciation Total Traffic Safety/St. Maint. 3302 Community Services 3302-4300 Materials/Supplies/Other 3302-4310 Motor Fuels And Lubes 3302-4311 Auto Maintenance Total Materials/Supplies/Other 3302-4900 Depreciation 2,850.00 1,600.00 4,450.00 15,249.00 15,249.00 0.00 48.13 48.13 0.00 0.00 3,018.17 918.23 3,936.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -168.17 681.77 513.60 105.90 57.39 88.46 15,249.00 0.00 15,249.00 0.00 19,699.00 48.13 3,936.40 0.00 15,762.60 19.98 5,200.00 10,000.00 15,200.00 151.22 -399.05 -247.83 6,390.08 8,321.14 14,711.22 0.00 0.00 0.00 -1,190.08 1,678.86 488.78 122.89 83.21 96.78 Page: 66 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 67 715 Equipment Replacement Fund Account Number 3302-4902 DepreciationNehicles Total Depreciation 3302-5400 Equipment/Fumiture •3302-5402 Equip -More Than $1,000 302-5403 Vehicles Total Equipment/Fumiture Total Community Services 4201 Community Dev/Building 4201-4300 Materials/Supplies/Other 4201-4310 Motor Fuels And Lubes 4201-4311 Auto Maintenance Total Materials/Supplies/Other 4201-4900 Depreciation 4201-4902 DepreciationNehicles Total Depreciation Total Community Dev/Building 4202 Public Works Administration 0202-4310 Motor Fuels And Lubes 4202-4311 Auto Maintenance Total Materials/Supplies/Other 02-4300 Materials/Supplies/Other 4202-4900 Depreciation 4202-4902 DepreciationNehicles Total Depreciation 4202-5400 Equipment/Furniture Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 22,412.00 0.00 0.00 22,412.00 0.00 0.00 4,763.00 57,264.00 62,027.00 0.00 0.00 0.00 0.00 56,819.19 56,819.19 0.00 22,412.00 0.00 0.00 22,412.00 0.00 0.00 0.00 0.00 4,763.00 444.81 5,207.81 0.00 99.22 91.60 99,639.00 -247.83 71,530.41 0.00 28,108.59 71.79 1,200.00 450.00 1,650.00 8,205.00 8,205.00 0.00 58.45 58.45 0.00 0.00 1,206.60 1,444.84 2,651.44 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -6.60 100.55 -994.84 321.08 -1,001.44 160.69 8,205.00 0.00 8,205.00 0.00 9,855.00 58.45 2,651.44 0.00 7,203.56 26.90 1,200.00 1,200.00 2,400.00 1.00 304.96 305.96 1,199.13 1,169.43 2,368.56 0.00 0.00 0.00 8,563.00 0.00 0.00 0.00 8,563.00 0.00 0.00 0.00 0.87 30.57 31.44 99.93 97.45 98.69 8,563.00 0.00 8,563.00 0.00 Page: 67 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 68 715 Equipment Replacement Fund Account Number 4202-5403 Vehicles Total Equipment/Furniture 11kTotal Public Works Administration 4 Building Maintenance 4204-4300 Materials/Supplies/Other 4204-4310 Motor Fuels And Lubes 4204-4311 Auto Maintenance Total Materials/Supplies/Other 4204-4900 Depreciation 4204-4902 DepreciationNehicles Total Depreciation Total Building Maintenance 4206 Equipment Service 4206-4100 Personal Services 4206-4102 Regular Salaries 4206-4106 Regular Overtime 206-4111 Accrual Cash In 4206-4112 Part Time/Temporary 4206-4180 Retirement 4206-4188 Employee Benefits 4206-4189 Medicare Benefits Total Personal Services 4206-4200 Contract Services 4206-4201 Contract Serv/Private 4206-4251 Contract Services/Govt Total Contract Services 4206-4300 Materials/Supplies/Other Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 24,330.00 0.00 0.00 0.00 24,330.00 0.00 24,330.00 0.00 0.00 0.00 24,330.00 0.00 35,293.00 305.96 2,368.56 0.00 32,924.44 6.71 700.00 1,000.00 1,700.00 3,465.00 3,465.00 0.00 0.00 0.00 0.00 0.00 266.58 541.87 808.45 0.00 0.00 0.00 0.00 0.00 0.00 0.00 433.42 38.08 458.13 54.19 891.55 47.56 3,465.00 0.00 3,465.00 0.00 5,165.00 0.00 808.45 0.00 4,356.55 15.65 86,235.00 3,000.00 5,707.00 19,000.00 6,729.00 11,318.00 1,813.00 133,802.00 9,500.00 350.00 9,850.00 5,226.91 0.00 0.00 2,950.08 393.44 642.37 225.69 9,438.49 0.00 211.00 • 211.00 78,565.11 1,117.69 4,997.52 21,295.88 5,917.02 9,200.58 1,899.69 122,993.49 2,103.59 211.00 2,314.59 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 7,669.89 91.11 1,882.31 37.26 709.48 87.57 -2,295.88 112.08 811.98 87.93 2,117.42 81.29 -86.69 104.78 10,808.51 91.92 7,396.41 139.00 7,535.41 22.14 60.29 23.50 Page: 68 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 69 715 Equipment Replacement Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 4206-4309 Maintenance Materials 3,500.00 344.73 3,019.14 0.00 480.86 86.26 4206-4310 Motor Fuels And Lubes 1,600.00 1,012.92 1,012.92 0.00 587.08 63.31 4206-4311 Auto Maintenance 1,000.00 279.20 792.17 0.00 207.83 79.22 4206-4396 Insurance User Charges 13,245.00 1,101.00 13,245.00 0.00 0.00 100.00 Total Materials/Supplies/Other 19,345.00 2,737.85 18,069.23 0.00 1,275.77 93.41 •4206-4900 Depreciation 4206-4901 Depreciation/Mach/Equipment 1,000.00 0.00 0.00 0.00 1,000.00 0.00 Total Depreciation 1,000.00 0.00 0.00 0.00 1,000.00 0.00 4206-5400 EquipmenUFumiture 4206-5401 Equip -Less Than $1,000 4206-5402 Equip -More Than $1,000 Total EquipmenUFumiture Total Equipment Service 4601 Community Resources 4601-4300 Materials/Supplies/Other 4601-4310 Motor Fuels And Lubes 4601-4311 Auto Maintenance Total Materials/Supplies/Other 001-4900 Depreciation 4601-4902 DepreciationNehicles Total Depreciation 4601-5400 EquipmenUFumiture 4601-5402 Equip -More Than $1,000 Total Equipment/Furniture 900.00 2,000.00 2,900.00 166,897.00 800.00 2,500.00 3,300.00 5,656.00 5,656.00 6,965.00 6,965.00 0.00 0.00 0.00 12,387.34 0.00 0.00 0.00 0.00 0.00 0.00 0.00 853.97 1,025.01 1,878.98 145,256.29 1,043.68 709.14 1,752.82 0.00 0.00 0.00 0.00 0.00 46.03 94.89 0.00 974.99 51.25 0.00 1,021.02 64.79 0.00 21,640.71 87.03 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -243.68 130.46 1,790.86 28.37 1,547.18 53.12 5,656.00 0.00 5,656.00 0.00 6,965.00 0.00 6,965.00 0.00 Total Community Resources 15,921.00 0.00 1,752.82 0.00 14,168.18 11.01 6101 Parks Page: 69 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 70 715 Equipment Replacement Fund Account Number Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 6101-4300 Materials/Supplies/Other 01-4310 Motor Fuels And Lubes 2,000.00 0.00 2,169.26 0.00 -169.26 108.46 1-4311 Auto Maintenance 800.00 79.73 437.20 0.00 362.80 54.65 Total Materials/Supplies/Other 2,800.00 79.73 2,606.46 0.00 193.54 93.09 6101-4900 Depreciation 6101-4902 DepreciationNehicles Total Depreciation Total Parks Total Equipment Replacement Fund Grand Total • 7,243.00 7,243.00 10,043.00 1,877,448.00 37,513,770.00 0.00 0.00 0.00 0.00 79.73 2,606.46 48,764.97 813,233.93 2,613,309.84 28,623,174.87 0.00 0.00 0.00 25,484.71 903,171.55 7,243.00 0.00 7,243.00 0.00 7,436.54 25.95 1,038,729.36 44.67 7,987,423.58 78.71 Page: 70 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 71 Account Number 001 General Fund •05 General Fund Total Lightg/Landscapg Dist Fund Lightg/Landscapg Dist Fund Total 109 Downtown Enhancement Fund Downtown Enhancement Fund Total 110 Parking Fund Parking Fund Total 115 State Gas Tax Fund • State Gas Tax Fund Total 117 AB939 Fund AB939 Fund Total 119 Compensated Absences Fund Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 18,831,725.00 1,597,346.40 16,944,449.65 373,044.18 1,514,231.17 91.96 586,118.00 1,343,250.00 2,965,255.00 355,488.00 213,519.00 68,847.75 540,103.79 0.00 46,014.21 92.15 52,577.69 627,148.40 77,428.40 638,673.20 52.45 239,562.43 2,855,023.38 7,722.41 102,509.21 96.54 29,624.00 355,488.00 0.00 0.00 100.00 13,053.54 112,188.82 20,809.32 80,520.86 62.29 Page: 71 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 72 Account Number Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used Compensated Absences Fund 148,972.00 12,418.00 148,972.00 • 0.00 0.00 100.00 Total County Gas Tax Fund County Gas Tax Fund 0.00 0.00 205.19 0.00 -205.19 0.00 Total 121 Prop A Open Space Fund Prop A Open Space Fund Total 122 Tyco Fund Tyco Fund 162,280.00 2,141,899.00 1,714.00 20,557.00 0.00 141,723.00 12.67 34,002.42 305,613.57 0.00 1,836,285.43 14.27 Total 125 Park/Rec Facility Tax Fund 4111 Park/Rec Facility Tax Fund 226,068.00 3,400.00 45,315.00 2,500.00 178,253.00 21.15 Total 126 4% Utility Users Tax Fund 4% Utility Users Tax Fund 0.00 0.00 0.00 0.00 0.00 0.00 Total 127 Building Improvement Fund Building Improvement Fund 0.00 0.00 0.00 0.00 0.00 0.00 Total Page: 72 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 73 Account Number 136 Lower Pier Admin Exp Fund Lower Pier Admin Exp Fund Total •37 Myrtle Dist Admin Exp Fund Myrtle Dist Admin Exp Fund Total 138 Loma Dist Admin Exp Fund Loma Dist Admin Exp Fund Total 140 Community Dev Block Grant Community Dev Block Grant Total 145 Proposition A Fund • Proposition A Fund Total 146 Proposition C Fund Proposition C Fund Total 150 Grants Fund Grants Fund Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 2,784.00 86.00 2,333.59 0.00 450.41 83.82 8,677.00 242.00 6,573.70 0.00 2,103.30 75.76 9,582.00 624,609.00 311,090.00 50,270.00 424,902.00 280.00 7,256.96 0.00 2,325.04 75.74 6,430.50 520,920.22 67,641.70 36,047.08 94.23 60,566.16 240,406.14 0.00 70,683.86 77.28 0.00 43,349.00 4,770.00 2,151.00 95.72 2,044.43 33,768.59 49,945.28 341,188.13 19.70 Page: 73 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 74 Account Number •1 Total Ofc of Traffic Sfty Grant Fund Ofc of Traffic Sfty Grant Fund Total 152 Air Quality Mgmt Dist Fund Air Quality Mgmt Dist Fund Total 153 Supp Law Enf Sery Fund (SLESF) Supp Law Enf Sery Fund (SLESF) Total 154 CA Law Enf Equip Prog Fund (CLEEP) CA Law Enf Equip Prog Fund (CLEEP) Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 15,441.00 0.00 15,439.57 0.00 1.43 99.99 1,000.00 170,487.00 85.00 730.00 0.00 270.00 73.00 11,326.70 111,780.61 3,053.82 55,652.57 67.36 42,781.00 0.00 7,202.43 6,330.39 29,248.18 31.63 • Total 156 Taskforce for Reg Autotheft Prey (TRAP) Taskforce for Reg Autotheft Prey (TRAP) 148,200.00 9,708.72 109,877.20 0.00 38,322.80 74.14 Total 160 Sewer Fund Sewer Fund 2,802,899.00 77,499.46 1,737,534.84 49,374.71 1,015,989.45 63.75 Total Page: 74 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 75 Account Number 170 Asset Seizure/Forft Fund Total Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used Asset Seizure/Forft Fund 56,500.00 19,375.00 56,500.00 0.00 0.00 100.00 •80 Fire Protection Fund Fire Protection Fund Total 199 Contingency Fund Contingency Fund Total 301 Capital Improvement Fund Capital Improvement Fund 330,719.00 368,470.00 1,644,259.00 21,873.42 192,636.49 12,140.44 125,942.07 61.92 0.00 368,470.00 0.00 0.00 100.00 174,016.17 675,129.71 202,926.19 766,203.10 53.40 Total 302 Artesia Blvd Relinquishment III Artesia Blvd Relinquishment 0.00 0.00 0.00 0.00 0.00 0.00 Total 307 Myrtle Util Undrgrnd Impr Fund Myrtle Util Undrgrnd lmpr Fund 5,440.00 0.00 5,439.42 0.00 0.58 99.99 Total 308 Loma Util Undrgrnd Improv Fund Loma Util Undrgrnd Improv Fund 0.00 0.00 0.00 0.00 0.00 0.00 Page: 75 expstat.rpt 07/21/2004 4:14PM Expenditure Status Report CITY OF HERMOSA BEACH 6/1/2004 through 6/30/2004 Page: 76 Account Number s Total Bayview Dr Utility Undergmding District Bayview Dr Utility Undergrnding District Total 311 Beach Dr Utility Undergrounding Dist Beach Dr Utility Undergrounding Dist Total 312 Prospect Utility Undergmding Dist Fund Prospect Utility Undergmding Dist Fund Total 705 Insurance Fund Insurance Fund • 715 Recap Report Adjusted Year-to-date Year-to-date Prct Appropriation Expenditures Expenditures Encumbrances Balance Used 8,000.00 20,276.00 200,000.00 1,415,362.00 0.00 8,000.00 0.00 0.00 100.00 1,414.26 15,276.25 0.00 4,999.75 75.34 0.00 200,000.00 0.00 0.00 100.00 127,050.82 1,496,251.42 0.00 -80,889.42 105.72 Total Equipment Replacement Fund Equipment Replacement Fund 1,877,448.00 48,764.97 813,233.93 25,484.71 1,038,729.36 44.67 Total Grand Total 37,513,770.00 2,613,309.84 28,623,174.87 903,171.55 7,987,423.58 76.30 Page: 76 ti GENERAL ACCOUNT FUND NUMBER FUND NAME 6/1/2004 BALANCE - TREASURER'S REPORT - •04 CASH ADJUSTMENT CHECKS ADJUSTMENT 6/30/2004 BALANCE 001 GENERAL 105 LIGHTING/LANDSCAPING 109 DOWNTOWN ENHANCEMENT 110 PARKING 115 STATE GAS TAX 117 AB939 119 COMPENSATED ABSENCES 121 PROP A OPEN SPACE 122 TYCO 125 PARK REC FAC TAX 126 RAILROAD RIGHT OF WAY 127 BUILDING IMPROVMENT 136 LOWER PIER ADMIN EXPENSE 137 MYRTLE ADMIN EXPENSE 138 LOMA ADMIN EXPENSE 140 COMM DEVELOPMENT BLOCK GRANT 145 PROPOSITION A 146 PROPOSITION C 150 GRANTS 151 OFC OF TRAFFIC SAFETY GRANT 152 AIR QUALITY MGMT DISTRICT 153 SUPPLEMENTAL LAW ENF SERVICES 154 CA LAW ENF EQUIPMENT PROGRAM 156 TASK FORCE FOR REG AUTOTHEFT PREV 160 SEWER MAINTENANCE 170 ASSET SEIZURE 180 FIRE PROTECTION 198 RETIREMENT STABILIZATION FUND 199 CONTINGENCY 301 CAPITAL IMPROVEMENT 302 ARTESIA BLVD. RELINQUISHMENT 305 LWR PIER ASSMNT DIST IMPROV 307 MYRTLE UTIL UNDERGROUND IMPROV 308 LOMA UTIL UNDERGRND IMPROV 309 BAYVIEW DRIVE UNDERGROUND DISTRICT 310 BONNIE BRAE UNDERGROUND DISTRICT 311 BEACH DRIVE UNDERGROUND DISTRICT 312 PROSPECT UNDERGROUNDING DISTRICT 610 LOWER PIER DISTRICT REDEMP 617 MYRTLE REDEMPTION 618 LOMA REDEMPTION 705 INSURANCE 715 EQUIPMENT REPLACEMENT 900 INVESTMENT TOTAL GENERAL ACCOUNT $4,577,527.93 $1,200,067.62 $226,959.91 (1,012,752.47) (419,810.06) $171,357.83 $650.00 (33,398.78) (9,224.11) $849,022.73 $92,780.16 $156.00 (45,148.93) (801.59) $218,912.73 $330,822.29 $2,207.44 (87,549.12) (139,760.20) ($24,847.15) $62,802.73 (29,624.00) $369,824.71 $4,915.79 $18.00 (3,113.76) (209.23) $196,609.61 (12,418.00) (39,397.25) (1,714.00) $1,948,567.51 (9,916.35) (23,649.70) $171,179.98 $25,886.00 (3,406.01) $29,518.67 (1.04) $3,868.97 $821.83 (86.00) $8,963.48 (242.00) $11,663.89 - (280.00) ($10,957.72) $5,589.00 ($2,504.00) $209,222.69 $49,177.50 (3,595.13) (8.56) $874,059.02 $40,999.50 (30.68) ($256,220.67) (1,864.93) $0.00 $10,770.07 $5,895.91 (69.48) (0.17) $110,306.15 (8,000.78) (30,466.87) $36,319.60 $28,108.00 (1.27) ($37,490.36) (7,488.23) (2,284.82) $1,300,081.01 $4,398.00 $63,763.56 (51,299.77) (9,071.94) $146,477.35 (16,000.00) (3,380.14) $390,908.96 $10,767.50 $524.53 (10,738.57) (11,673.10) $371,020.81 (13.02) $2,620,195.48 (91.97) $1,850,437.80 $22,913.00 (48,714.10) (141.45) $519,864.97 (18.25) $70,438.81 (2.47) $4,613.44 $99,024.30 (3.48) $0.00 $0.00 $6,414.26 $12,000.00 (1,186.15) $0.00 $30,416.88 $93,151.99 $107,284.87 $3,983,540.03 $118,027.00 (82,799.05) (551.58) $2,605,737.62 $1,703.24 $107,565.87 (32,573.64) (7,975.86) $0.00 $23,629,212.83 $1,847,805.24 $570,893.31 ($1,458,713.24) TRUST ACCOUNTS BALANCE 6/1/2004 DEPOSITS CHARGES BALANCE 6/30/2004 PAYROLL CABLE TV DEPOSIT TOTAL TRUST ACCOUNTS TOTAL ALL ACCOUNTS $23,081,358.53 INVESTMENTS $272,131.39 INTEREST RECEIVED TO DATE $3,000.00 $949,896.31 ($949,896.31) $10,000.00 $13,000.00 $949,896.31 ($949,896.31) Oik 4.4.4..a4-,- Or OePoti-ti JOHN M. WORKMAN, CITY TREASURER $3,000.00 $10,000.00 $13,000.00 $23,895,256.57 $4,571,992.93 $129,384.94 $896,008.37 $324,633.14 $8,331.58 $371,435.51 $184,191.61 ($41,111.25) $1,915,001.46 $193,659.97 $29,517.63 $3,868.97 $735.83 $8,721.48 $11,383.89 ($7,872.72) $254,796.50 $915,027.84 ($258,085.60) $0.00 $16,596.33 $71,838.50 $64,426.33 ($47,263.41) $1,307,870.86 $127,097.21 $379,789.32 $371,007.79 $2,620,103.51 $1,824,495.25 $519,846.72 $70,436.34 $4,613.44 $99,020.82 $0.00 $0.00 $17,228.11 $0.00 $30,416.88 $93,151.99 $107,284.87 $4,018,216.40 $2,674,457.23 $0.00 (706,941.57) $23,882,256.57 BANK BALANCES GENERAL TRUST ACCTS OUTSTANDING CHECKS INVESTMENTS BALANCE $937,676.33 $21.617.40 $959,293.73 j$145.395.69) $813,898.04 $23.081.358.53 $23,895,256.57 2d2) • • July 22, 2004 Honorable Mayor City Council Meeting and Members of the City Council of June 27, 2004 MONTHLY STATUS REPORT OF INACTIVE PUBLIC DEPOSITS FOR HERMOSA BEACH Investments in the report meet the requirements of the City of Hermosa Beach's adopted investment policy. Attached is a report of all inactive Public Deposits for the month of June 2004. This is the most current available investment information. Respectfully submitted, USC( JOhn M. Workman City Treasurer NOTED: NOTED FOR FISCAL IMPACT: Steph = urre I Viki Copeland City M nager Finance Director 2d(3) INVESTMENT REPORT Jun -04 RATE INSTITUTION DATE OF DATE OF ORIGINAL MARKET * FACE/PAR OF % WEIGHTED BOOK VALUE INVESTMENT MATURITY COST VALUE VALUE INTEREST TOTAL YIELD LAIF 6/1/2004 $22,074,672.48 ($500,000.00) 6/30/2004 $21,574,672.48 $21,574,672.48 1.560% 93.500% 1.459% U.S. GOVT AGENCY BONDS/NOTES Federal Nat'l Mtg Corp $500,520.03 5/22/2002 8/15/2004 $509,430.00 $501,875.00 $500,000.00 4.500% 2.167% 0.098% Federal Home Loan $501,221.22 11/5/2003 2/15/2006 $501,690.00 $496,875.00 $500,000.00 2.375% 2.167% 0.051% Federal Home Loan $504,944.80 4/19/2004 9/15/2006 $505,385.00 $497,815.00 $500,000.00 2.875% 2.167% 0.062% INVESTMENT TOTAL $23,081,358.53 $1,516,505.00 $1,496,565.00 $23,074,672.48 100.00% 1.670% In compliance with the California Code Section 53646, the Treasurer of the City of Hermosa Beach hereby certifies that sufficient investment liquidity and anticipated revenues are available to meet the City's budgeted expenditure requirements for the next six months. Investments in the report meet the requirements of the City of Hermosa Beach's adopted investment policy. RESPECTFULLY SUBMITTED, (s.),s,„1,_ &-Qu-I<-ci HN M. WORKMAN CITY TREASURER • • Honorable Mayor and Members of The Hermosa Beach City Council RECOMMENDATION TO DENY CLAIM Recommendation: 247/0Y July 15, 2004 Regular Meeting of July 27, 2004 It is recommended that City Council deny the following claim and refer it to the City's Liability Claims Administrator: 1. Claimant: Rohrbacher, Bernhard Narro, Victor Date of Loss: 02-18-04 Date Filed: 07-07-04 Allegation: False arrest A copy of this claim is on file in the City Clerk's office. Respectfully Submitted, Micha A. Earl, birector / Pers nel & Risk Manage ent Concur: Stephen R. Burrell City Manager 2e 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 CYNTHIA ANDERSON -BARKER, State Bar No. 175764 Law Offices of Cynthia Anderson -Barker 3435 Wilshire Boulevard, Suite 2900 Los Angeles, California 90010 (213) 381-3246; FAX (213) 381-0024 CAROL A. SOBEL, State Bar No. 84483 Law Offices of Carol A. Sobel 429 Santa Monica Boulevard, Suite 550 Santa Monica, California 90401 (310) 393-3055; FAX (310) 393-3605 ROBERT M. MYERS, State Bar No. 66957 Newman. Aaronson. Vanaman 14001 Ventura Boulevard Sherman Oaks, California 91423 (818) 990-7722; FAX (818) 501-1306 Attorneys for Claimants BEFORE THE CITY OF HERMOSA BEACH Claim of BERNHARD ROHRBACHER and VICTOR NARRO, Claimants, vs. CITY OF HERMOSA BEACH, CLAIM FOR DAMAGES (Government Code § 910) TO: CITY OF HERMOSA BEACH AND ITS GOVERNING BOARD: You are hereby notified that Claimants BERNHARD ROHRBACHER and VICTOR NARROW claim damages from the City of Hermosa Beach and certain employees identified below. In support of their claim, they state: 1. The address of each claimant is: Bernhard Rohrbacher 1809 N. Berendo Street, No. 201 Los Angeles, California 90027 -1- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Victor Narro 1729 Beloit Avenue, No. 26 Los Angeles, California 90025 2. All notices or other communications with regard to this claim should be sent to the attorneys for Claimant addressed as follows: CYNTHIA ANDERSON -BARKER Law Offices of Cynthia Anderson -Barker 3435 Wilshire Boulevard, Suite 2900 Los Angeles, California 90010 CAROL A. SOBEL Law Offices of Carol A. Sobel 429 Santa Monica Boulevard, Suite 550 Santa Monica, California 90401 ROBERT M. MYERS Newman.Aaronson. Vanaman 14001 Ventura Boulevard Sherman Oaks, California 91423 3. The date, place and other circumstances of the occurrence or transaction which gave rise to the claim asserted is as follows: Arrest of Bernhard Rohrbacher on February 18, 2004 On February 18, 2004, Bernhard Rohrbacher, a lawyer who is an officer of the National Lawyers Guild/Los Angeles Chapter ("NLG"), was engaged in lawful First Amendment activity at the Hermosa Beach Vons store located at 715 Pier Avenue. He was arrested by a Hermosa Beach Police Officer and placed in the backseat of a patrol car. Mr. Rohrbacher was physically attacked by a shopper he was urging not to cross the picket line. The shopper intentionally bumped into him and challenged him to fight and Mr. Rohrbacher declined the invitation. Later, Mr. Rohrbacher observed the shopper talking to a police officer. Mr. Rohrbacher informed the police that the shopper had intentionally bumped into him. A Hermosa Beach police officer responded "shut your mouth!" Mr. Rohrbacher responded "How about being polite?" The officer then stated "You are not polite!" Whereupon Mr. Rohrbacher resumed walking the picket line in front of the entrance of the Vons. After a while, the officer came to the side of the entrance to the Vons and shouted "Come over here, I want to talk to you!" Mr. Rohrbacher, who had not been informed that he was being -2- 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 detained or under arrest, told the officer that he was walking the picket line and the officer could come to him if he wanted to engage in conversation. The officer shouted very aggressively "You come over here!" Mr. Rohrbacher said "What makes you think you can order me around?" The officer stated, "I am a police officer!" and Mr. Rohrbacher stated that being a police officer gave him no right to order him around. The officer disagreed, stating "Yes it does!" Finally, the officer came to the picket line and stood between Mr. Rohrbacher and the entrance to Vons. Mr. Rohrbacher stopped in front of him to talk to him and the officer said "You are blocking me!" Mr. Rohrbacher started walking the picket line again. While Mr. Rohrbacher was walking the picket line, the officer walked up to Mr. Rohrbacher and ordered him to put his hands behind his back and handcuffed him. While being handcuffed, Mr. Rohrbacher asked him what he was being arresting for and the stated "interference with an investigation into a crime." The officer marched Mr. Rohrbacher over to the police car, ordered him into the back seat, and locked the door. After approximately five minutes, another officer came to the car and asked Mr. Rohrbacher what happened. After Mr. Rohrbacher told him what happened, this officer walked away and Mr. Rohrbacher was left in the locked car for another five minutes or so. Then both police officers came back and told him the shopper did not want to press charges. Nevertheless, the officers checked Mr. Rohrbacher's identification and berated him. A large police officer Mr. Rohrbacher had not talked to before, walked up to him, pressed himself against him and asked him whether he was proud of attacking little old ladies and throwing their purses to the ground. Mr. Rohrbacher told him he had witnesses that the shopper bumped into him. One of the officer's said, "Oh, those Union clowns?" The officer who pressed into him muttered "piece of crap." Mr.1 Rohrbacher asked him "Officer, did you just call me a piece of crap?" He said "No," and indicated that he referred to the situation as a piece of crap. The other police officers snickered as ifrhe had been very smart. The officer who had handcuffed Mr. Rohrbacher said "Don't you know which side the judges are on?" At some point, Mr. Rohrbacher stopped talking to the police and the berated him for his silence. Ultimately, Mr. Rohrbacher was released from the police vehicle al no charges were lodged against him. -3- 1 2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Bernhard Rohrbacher engaged in no unlawful activity and his arrest by Hermosa Beach Police Officers was in retaliation for his speech activities. Battery of Victor Narro on February 26, 2004 On February 25, 2004, Victor Narro, an officer of the NLG, was engaged in lawful First Amendment activity at the Hermosa Beach Vons store located at 715 Pier Avenue. As Mr. Narro was engaging shoppers in conversation, Hermosa Beach Police Officer McCoughlin informed him that he could not talk to customers. This unlawful attempt to chill Mr. Narro's speech was unsuccessful, since Mr. Narro informed the officer that he had every right to talk to customers. Later, Hermosa Beach Police Officer Donavan Sellan intentionally pushed Mr. Narro from behind for no reason. Mr. Narro told Officer Donavan not to push him and asked him for a personnel complaint form. Officer Donavan took Mr. Narro to a group of officers, which included Sergeant Tom Thompson. Notwithstanding the fact that this criminal battery by Officer Sellan was independently witnessed, Hermosa Beach Police personnel refused to take any action against Officer Sellan. Sergeant Thompson told Mr. Narro that he needed to go to the police station to file a complaint, even though there were numerous police supervisors present at the location. Sergeant Thompson told Mr. Narro several times, "Are you sure that you have the evidence to support your complaint?" He also stated to Mr. Narro that "you better be sure that you have the evidence for your complaint." Mr. Narro viewed these comments as an attempt to discourage him from lodging a complaint. Shortly thereafter, Mr. Narro went to the Hermosa Beach Police Department with his lawyer to file a complaint against the officer. However, after being required to wait for a considerable period of time, Mr. Narro and his lawyer demanded to receive a complaint form that could be filed later rather than being required to continue to wait. 4. A general description of the indebtedness, obligation, injury, damage or loss incurred so far as it may be known at the time of presentation of the claim is as follows: Bernhard Rohrbacher a. False arrest. b. False imprisonment. -4- 1 2 3 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 c. Battery. d. Violation of Civil Code Sections 51, 51.7, 52, and 52.1. e. Violation of the First, Fourth and Fourteenth Amendments to the United States Constitution and 42 U.S.C. §§ 1983 and 1985. Victor Narro a. Battery. b. Violation of Civil Code Sections 51, 51.7, 52, and 52.1. e. Violation of the First, Fourth and Fourteenth Amendments to the United States Constitution and 42 U.S.C. §§ 1983 and 1985. 5. The name or names of the public employee or employees causing injury, damage, or loss, are as follows: Officer McCoughlin, and Donavan Sellan. 6. The injuries sustained by Claimants, as far as known, as of the date of presentation of this claim, consist of pain and suffering and severe emotional injury. In addition, Claimant seeks statutory damages of $4,000 under Civil Code Section 52(a) and $25,000.00 under Civil Code Sections 52(b) and 52.1. Punitive damages will be sought against the individual officers. 7. The amount claimed, as of the date of presentation of the claim, is as follows: Jurisdiction over the claim would rest in the superior court. Dated: July 6, 2004 LAW OFFICES OF CYNTHIA ANDERSON -BARKER LAW OFFICES OF CAROL A. SOBEL NEWMAN.AARONSON.VANAMAN frt\-hp, Utrifk\ Aln CYNTHIA ANDERSON -BARKER Attorneys for Claimants -5- • • PROOF OF SERVICE BY MAIL I am a resident of the county of Los Angeles; I am over the age of 18 and not a party to the within action; my business address is 3435 Wilshire Blvd., Suite 2900, Los Angeles, CA 90010. On Jully 6, 2004, I served the within Claim for Damages on the interested parties herein by placing a true copy thereof enclosed in a sealed envelope with postage thereon fully prepaid in the United States mail at Los Angeles, California addressed as follows: City Clerk City of Hermosa Beach 1315 Valley Drive Hermosa Beach, Ca 90254 I declare under penalty of perjury that the above is true and correct. Executed on July 6, 2004, at Los Angeles, California. c Cynthia Anderson -Barker A:\proof of service • Honorable Mayor and Members of the City Council • ,,,r.c_c_,—/-- 7/7/Dy July 19, 2004 For the City Council Meeting of July 27, 2004 ACCEPTANCE OF DONATIONS Recommended Action: It is recommended that the City Council accept donations received by the City to be used as follows: Free Wheelin Magazine $10,000.00 To be used for Sunset Concerts. J.R. Reviczky R spectfully submitted: Valerie Mohler Accounting Supervisor $183.50 To be used for the Art Walk event. (6/24, 7/29 & 8/26/04) Concur: Viki Copeland Finance Director St=phen Burrell City Manager 2f • • Honorable Mayor and Members of the Hermosa Beach City Council PROJECT STATUS REPORT Recommendation: It is recommended that Council receive and file this report. Ju y 19, 2004 2 Regular Meeting of July 27, 2004 As of June 30, 2004 Summary: This report gives the status of capital improvement projects that are either under design or construction. Capital improvement projects not indicated in this report can be found in the department's Monthly Activity Report. Proiect Status: PROJECT NO. CIP 02-108 STREET IMPROVEMENTS - 2ND ST. FROM PCH TO THE STRAND; MONTEREY FROM HERONDO TO 4'" ST. DESCRIPTION STATUS STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING PROJECT ON HOLD PRELIMINARY ENGINEERING COMPLETED 05/07/03 DESIGN & ENGINEERING (PS&E) TO COUNCIL FOR APPROVAL TO ADVERTISE 02/24/04 TO PW COMMISSION FOR REVIEW COMPLETED TO COUNCIL FOR AWARD TO COUNCIL FOR APPROVAL TO ADVERTISE BEGIN CONSTRUCTION 10/22/03 BID OPENING 08/04 TO COUNCIL FOR AWARD 09/04 BEGIN CONSTRUCTION 10/04 END CONSTRUCTION 11/04 PROJECT NO. CIP 03-109 STREET IMPROVEMENTS - CONCRETE ROAD RECONSTRUCTION AT VARIOUS LOCATIONS DESCRIPTION STATUS STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING REVISED ' DESIGN & ENGINEERING (PS&E) COMPLETED TO PW COMMISSION FOR REVIEW UNDERGROUNDING DESIGN BY SCE TO COUNCIL FOR APPROVAL TO ADVERTISE 02/24/04 BID OPENING COMPLETED TO COUNCIL FOR AWARD TO PW COMMISSION FOR REVIEW BEGIN CONSTRUCTION 10/22/03 END CONSTRUCTION 08/04 PROJECT NO. CIP 03-110 STREET IMPROVEMENTS - SLURRY SEAL AT VARIOUS LOCATIONS DESCRIPTION STATUS STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING REVISED ' DESIGN & ENGINEERING (PS&E) COMPLETED TO PW COMMISSION FOR REVIEW UNDERGROUNDING DESIGN BY SCE TO COUNCIL FOR APPROVAL TO ADVERTISE 02/24/04 BID OPENING COMPLETED TO COUNCIL FOR AWARD TO PW COMMISSION FOR REVIEW BEGIN CONSTRUCTION 10/22/03 END CONSTRUCTION 08/04 PROJECT NO. CIP 00-140 11T" PLACE ON -STREET PARKING IMPROVEMENTS DESCRIPTION STATUS ' REVISED ' PRELIMINARY ENGINEERING COMPLETED 12/22/02 UNDERGROUNDING DESIGN BY SCE COMPLETED 02/24/04 PLANS SPECS & ESTIMATES COMPLETED 06-15-04 TO PW COMMISSION FOR REVIEW COMPLETED 10/22/03 TO COUNCIL FOR APPROVAL TO ADVERTISE 08/04 BID OPENING 09/04 TO COUNCIL FOR AWARD 10/04 BEGIN CONSTRUCTION 11/04 END CONSTRUCTION 04/05 2g PROJECT NO. CIP 02-185 5Th STREET - PCH TO0MORE ;PCH TO PROSPECT DESCRIPTION STATUS STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING REVISED PRELIMINARY ENGINEERING COMPLETED 12/23/03 DESIGN & ENGINEERING (PS&E) COMPLETED 08/11/03 TO PW COMMISSION FOR REVIEW COMPLETED 05/28/03 TO COUNCIL FOR APPROVAL TO ADVERTISE COMPLETED 08/12/03 BID OPENING COMPLETED 11/20/03 TO COUNCIL FOR AWARD COMPLETED 01/13/04 BEGIN CONSTRUCTION COMPLETED 03/15/04 END CONSTRUCTION 07/04 Projects 02-185 and 02-187 have been combined into a single project. PROJECT NO. CIP 02-188 STREET IMPROVEMENTS - 10Th ST. BETWEEN OCEAN AND PROSPECT DESCRIPTION STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING PROJECT ON HOLD DESIGN & ENGINEERING (PS&E) N/A TO PW COMMISSION FOR REVIEW N/A TO COUNCIL FOR APPROVAL TO ADVERTISE N/A BID OPENING COMPLETED 06/12/03 WILL BE REBID TO COUNCIL FOR AWARD TO BE DETERMINED BEGIN CONSTRUCTION TO BE DETERMINED END CONSTRUCTION TO BE DETERMINED PROJECT NO. CIP 02-193 VARIOUS STREET IMPROVEMENTS #4 DESCRIPTION STATUS REVISED PRELIMINARY ENGINEERING PROJECT ON HOLD DESIGN & ENGINEERING (PS&E) N/A TO PW COMMISSION FOR REVIEW N/A TO COUNCIL FOR APPROVAL TO ADVERTISE N/A BID OPENING COMPLETED 06/12/03 WILL BE REBID TO COUNCIL FOR AWARD TO BE DETERMINED BEGIN CONSTRUCTION TO BE DETERMINED END CONSTRUCTION TO BE DETERMINED PROJECT NO. CIP 99-409 MANHOLE REPAIR/RECONSTRUCTION DESCRIPTION STATUS REVISED PRELIMINARY ENGINEERING N/A DESIGN & ENGINEERING (PS&E) N/A TO PW COMMISSION FOR REVIEW N/A TO COUNCIL FOR APPROVAL TO ADVERTISE N/A BID OPENING COMPLETED 06/12/03 WILL BE REBID TO COUNCIL FOR AWARD TO BE DETERMINED BEGIN CONSTRUCTION TO BE DETERMINED END CONSTRUCTION TO BE DETERMINED PROJECT NO. CIP 03-418 UPGRADE OF SEWER PUMP STATIONS DESCRIPTION STATUS PROJECT ON HOLD PRELIMINARY ENGINEERING DESIGN & ENGINEERING (PS&E) TO PW COMMISSION FOR REVIEW TO COUNCIL FOR APPROVAL TO ADVERTISE BID OPENING TO COUNCIL FOR AWARD BEGIN CONSTRUCTION END CONSTRUCTION 2 • PROJECT NO. CIP 02-626 COMMUNITY CENTER THEATER ADA UPGRADES PHASES 1 & 2 DESCRIPTION STATUS STATUS 8/26/02 ON HOLD PER S. BLUMENFELD PRELIMINARY ENGINEERING COMPLETED 08/12/02 DESIGN & ENGINEERING (PS&E) COMPLETED 03/03/03 TO PW COMMISSION FOR REVIEW N/A N/A TO COUNCIL FOR APPROVAL OF DESIGN & SPECS COMPLETED 07/08/03 BID OPENING COMPLETED 11/05/03 TO COUNCIL FOR AWARD COMPLETED 11/12/03 BEGIN CONSTRUCTION STARTED 12/01/03 END CONSTRUCTION COMPLETED 06/24/04 PROJECT NO. CIP 00-630 PIER RENOVATION, PHASE III DESCRIPTION STATUS STATUS PRELIMINARY ENGINEERING REVISED PRELIMINARY ENGINEERING COMPLETED 03-08-00 DESIGN & ENGINEERING (PS&E) COMPLETED 08-29-03 TO PW COMMISSION FOR REVIEW N/A TO COUNCIL FOR AWARD TO COUNCIL FOR APPROVAL TO ADVERTISE COMPLETED 05-27-03 BID OPENING COMPLETED 07/01/04 TO COUNCIL FOR AWARD 07-27-04 BEGIN CONSTRUCTION TBD END CONSTRUCTION TBD PROJECT NO. CIP 01-633 CITY BUILDINGS - RE -ROOFING DESCRIPTION STATUS PRELIMINARY ENGINEERING TBD DESIGN & ENGINEERING (PS&E) TO PW COMMISSION FOR REVIEW TO COUNCIL FOR APPROVAL TO ADVERTISE BID OPENING TO COUNCIL FOR AWARD BEGIN CONSTRUCTION END CONSTRUCTION PROJECT NO. CIP 02-634 CITY BUILDINGS - EXTERIOR PAINTING DESCRIPTION STATUS PRELIMINARY ENGINEERING TBD DESIGN & ENGINEERING (PS&E) TO PW COMMISSION FOR REVIEW TO COUNCIL FOR APPROVAL TO ADVERTISE BID OPENING TO COUNCIL FOR AWARD BEGIN CONSTRUCTION END CONSTRUCTION • Indicates Construction Completed *TBD - TO BE DETERMINED Respectfully submitted, Richard D. 6•an, P.E. Director of Public Works/City Engineer Concur: Stephen R. uel City Manager • July 21, 2004 Honorable Mayor and Members of the Hermosa Beach City Council Regular meeting of July 27, 2004 7/7) REQUEST FROM BEACH CITIES CHRISTIAN FELLOWSHIP TO WAIVE RENTAL FEES FOR THE THEATRE FOR THEIR 80TH ANNIVERSARY CELEBRATION Recommendation: That the City Council waive rental fees in the amount of $250 for rental of the theatre on September 19, 2004. Background: I have attached a letter from the church requesting the waiver of the theatre rental fee and marquee rental fee totaling $250.00. The church allows public use of its parking lot on a consistent and ongoing basis which benefits the users of the Community Center, Alano Club, and nearby residents. It would seem reasonable to grant their request in recognition of the service to the community that they provide. Respectfully submitt , , Stephen R. urrell City Manager 2h • es Christian fr d coer to o ='' %-15 July 6, 2004 Mayor and City Council 1315 Valley Drive Hermosa Beach, Ca. 90254 I am the senior pastor of Beach Cities Christian Fellowship in Hermosa Beach. We are so excited about celebrating our 80th anniversary in this great city. We have reserved the Hermosa Beach Playhouse on Sunday, September 19, 2004 from 2:OOpm-6:OOpm for this great community celebration service. Our request is that you would consider waiving the fees for the rental of the facility. We have allowed the Hermosa Beach Playhouse patrons usage of our parking lot for many years without charging any fee whatsoever. We deeply appreciate your consideration in this matter. Sincerely, Rev. Steven' : wis Senior Pastor 730 11t Street, P.O. Box 355, Hermosa Beach CA, 90254 / Phone: (310) 372-5536 / www.bccfonline.org Page 1 of 1 Steve From: Lisa Lynn Sent: Wednesday, July 07, 2004 9:21 AM To: Steve Subject: Beach Cities Christian Fellowship Rental Steve. Beach Cities Christian Fellowship September 19, 2004 2:OOPM-6:OOPM Rental Total=$390 Rental Fees Playhouse rental fee 4 hrs @ $50= $200 Marquee rental= $50 Staff Fees House Manager fee 4 hours @$15= $60 Theatre Technician fee 4 hours @ $20= $80 Note: group has already paid $500 refundable damage deposit Lisa Lynn 310-318-0247 Hermosa Beach Community Resources Department Creating Community through People, Parks, and Programs 7/7/2004 s Monday, July 05, 2004 Honorable Mayor and Members of The Hermosa Beach City Council • A9IDY Regular meeting of July 27th, 2004 PURCHASE OF BULLETPROOF VESTS FOR THE POLICE DEPARTMENT RECOMMENDATION Staff recommends that Council: 1. Authorize the purchase of eighteen Second Chance (18) BulletProof Vests (Body Armor). Background Body Armor (Bullet Proof Vest) technology has improved over the last few years making it possible to provide a higher level of protection in a lighter weight, more comfortable garment. Additionally, Body Armor has a manufacture's suggested expiration period of five years. Some of our vests will require replacement this year (FY 2004/05). The Second Chance "Monarch Summit" is the new industry standard for protection and comfort. It will afford our officers a slightly elevated level of protection while only weighing about half the amount of the current vests. FISCAL IMPACT The funds required for the replacement of these vests come from the Local Law Enforcement Block Grant (LLEBG) and were appropriated for the purpose of buying these vests in the regular council meeting of November 12,th 2003. We conducted a Request For Proposal (RFP) and received five bids.The lowest bidder had to be disqualified because their bid was for another brand of vest. None of the price quotes we received included sales tax. With these facts in mind the lowest bid is from Adamson Police Products for $9489.06. Adding sales tax to this bid brings the total to $10,272. Respectfully submitted, Captain Thomas Eckert Hermosa Beach Police Department Con Step l n : ell City Manager iscal Impact, Viki Copeland Finance director 2i • • Honorable Mayor and Members of Regular meeting of The Hermosa Beach City -Council November 12, 2003 REQUEST TO APPROVE THE RECOMMENDATIONS BY THE ADVISORY COMMITTEE ON THE SPENDING OF LLEBG GRANT FUNDS RECOMMENDATION Staff recommends that Council: 1. Approve the recommendation of the LLEBG advisory committee to spend the grant funds on cameral surveillance equipment, digital cameras and new generation ballistic vests. 2. Appropriate $11,450 for the purchase of the recommended equipment and establish a revenue account for the same amount. BACKGROUND The U.S. Department of Justice has tentatively awarded to the City of Hermosa Beach a Local Law Enforcement Block Grant (LLEBG) in the amount of $11,450. Among the many requirements of this grant, an advisory committee had to be formed to make recommendations on the use of this money. At their regular meeting of October 28, 2003, the City Council authorized staff to form an advisory committee in accordance with the requirements of the LLEBG grant. The advisory committee was to be made up of a minimum of five members, a member of the police department, local prosecutor's office, local courts, local schools and a local non-profit organization. ANALYSIS On October 29, 2003 the advisory committee met to discuss the possible uses of the grant money. The committee was comprised of the following individuals: Captain Tom Eckert of the Police Department Mr, Ken Meersand, the City Prosecutor for Hermosa Beach The Honorable Judge Dudley Gray of South Bay Superior Court Father Gary Klauer of Our Lady of Guadalupe Church and school Mrs. Jean Lombardo of the Hermosa Beach Women's Club After discussing different ideas, the consensus of the committee was to purchase camera surveillance equipment. The Police Department has a machine called a stealth radar. When the Police Department receives complaints about speeding traffic and other related traffic issues, the Police Department will deploy the stealth radar to determine the volume and speed of traffic in the area of concern. This machine prompted the idea of digital surveillance equipment. This is portable equipment that can be set up at different locations to record activity. This type of equipment should help the Sa • • police department in better identifying and responding to problem areas. (Cost estimate - $4000) Additionally, there is a need to purchase digital cameras and portable printers for our traffic and patrol officers. These cameras could be utilized to photograph crime scenes, suspects of crimes, traffic accidents and other related needs. Judge Gray felt that the use of this type of equipment (including the digital surveillance equipment mentioned) would be very important in the presentation of criminal cases in court and he strongly urged us to pursue this type of equipment. (Cost estimate - $2000) If there are funds remaining after these purchases, the balance will be used for the purchase and testing of new generation ballistic vests for the patrol officers. Currently, all uniformed personnel are required to wear ballistic vests while on duty. Even though ballistic vests have come a long way in weight, flexibility and comfort, they are still very hot especially in the summer time. Staff has learned that the new generation ballistic vests are much more flexible, cooler and lightweight. Any residue of funds will be utilized to test and purchase new vests. FISCAL IMPACT Upon final approval, the LLEBG grant monies ($11,450) will be funded directly to the City. Under the terms of this grant, the City is required to provide a matching amount of $1,272.00. It is proposed that this amount come from the Police Department's adopted budget. Respectful! submitte MICHAEL I CHIEF OF POLICE HERMOS A BE ' CH POLICE DEPARTMENT Concur: , 7 r STEPHEN BURRELL CITY MANAGER Fiscal Impact: Viki Copeland, Finance Director • • CITY OF HERMOSA BEACH — BID OPENING LOG SHEET Project Name: Date: Aond Now', 6 ,4e9.05/ Bidder's Name 1) &an of9dizt)6 ctit) G(Cu fri n la. I C,19)1,e__, 3) ; , ' �• I 2) 4) (AdA/kfildli2Lici riP1i 5) SCP att, 6)ku y,d-- 9177116.) Page of Amount of Bid Attest: /AIIPA Iid Office of the City Clerk - 1315 Valley Drive - Hermosa Beach, CA 90254 Received: 6/22/04 3:58PM; 3107988926 -> ADAMSON INDUSTRIES; Page 2 Jun 22 04 O2:34p SDD Records 3107988926 City o f2iermosa l�eacl..) p.2 Civic Center, 1315 Valley Drive, Hermosa Beach, California 90254.3885 Request For Proposal The City of Hermosa Beach is soliciting sealed bids from qualified vendors to furnish the Police Department with eighteen (18) bullet proof vests (body armor) with the following description: Eighteen (18) Second Chance, Monarch Summit Level II vests with standard trauma plate and one extra carrier per vest. Submission of Proposals Sealed proposals must be received in the office of the City Clerk, 1315 Valley Drive, Hermosa Beach, CA. 90254, on or before 2:00 p.m. Thursday. July 15th The City of Hermosa Beach reserves the right to extend any time frame as necessary. No late proposals will be accepted. Proposals received after the deadline will be returned to the bidder unopened. Proposals are to be submitted in a sealed envelope with the words, "Proposals for Second Chance Body Armor" written or typed on the envelope. Questions about this proposal can be directed to Captain Thomas Eckert at (310) 318-0302. Captain Thomas L. Eckert Hermosa Beach Police Department (Teckert@HermosaBch.org) • sirs tap re \ police products PROPOSAL SUBMITTED TO: City of Hermosa Beach • QU OTAT ON Public Safety and Law Enforcement Specialist- 930 W. 16th St Bldg. B-1, Costa Mesa CA 9262 • City Clerk 1315 Valley Dr Hermosa Beach, CA 90254 DATE: PHONE: FAX: NAME: June 23, 2004 REGI P JUL 1 5 2004 _Y orywarrietmeetz Capt. Eckert Teckert@.HermosaBch.orq BID NO. F.O.B. Dest TERMS Net 30 SHIP VIA ADAMSON DELIVERY SHIP DATE 6-8WKS AFTER FITS 1 QTY ITEM NUM. DESCRIPTION UNIT PRICE TOTAL PRICE 18 SUMMIT 11 SECOND CHANCE MONARCH SUMMIT 527.17 9489.06 LEVEL 11 BODY ARMOR W/ MAP 5X8 ARMOR PAC LEVEL 11 1 EXTRA APEX CARRIER VALUE ADDED NO COST EXTRA'S ONLY FROM ADAMSON POLICE PROD. ON SITE CUSTOMER FITTING OF PERSONNEL USING FACTORY FITTING VESTS AND PERSONAL INDIVIDUAL MEASUREMENTS TO INSURE A PERFECT FIT CUSTOM TAILORED VEST WE ARRANGE TO HANDLE ALL SHIFTS PRIVATE MEASUREMENT SERVICE FOR FEMALE OFFICERS FREE DELIVERY FREE AFTER DELIVERY INSPECTION TO HANDLE ANY FIT ISSUES/QUESTION FREE PICKUP/DELIVERY FOR REPAIR/ RETURN ALTERATIONS/EXCHANGES 24-48 HR FITTING RESPONSE TIME 71 _ /2 , , ALL STATE REQUES• T FOR QUOTATION POLICE EQUIPMENT COMPANY INC. Phone: 909-596-2470 WAREHOUSE: Fax: 909-596-3246 2821 Metropolitan Place jolee@allstatepolice.com Pomona, California 91767 Post Office Box 40 Claremont, California 91711 VENDOR: Hermosa Beach, City of Office of the City Clerk 1315 Valley Drive Hermosa Beach CA 90254 SHS TO: Hermosa Beach Police Department Captain Thomas L. Eckert (310) 318-0302 DATE 07/15/2004 TERMS Net 30 FOB Destination BY Jolee SHIP VIA UPS/Ground California Certified Small Business Number 0005332 ITEM QTY DESCRIPTION MODEL NO. PRICE TOTAL 1 18 Monarch Summit Level II SMT -2 528.65 9,515.70 To Include: 1 Additional APEX Carrier and Trauma Plate /92 E k 3 t. .,,,.i:4 Q ;EXCN, V i Quote Valid for 90 Days / 0 C‘•Ce--&_ Quotation Submit ed by: Jolee Taylor, Sales (909) 596-2470 jolee@allstatepolice.com INC. 1630 WEST OLYMPIC BOULEVARD • (213) 383-1395 • FAX (213) 383-6774 • LOS ANGELES, CALIFORNIA 90015 TO: QUOTATION ATTN: CAPT. THOMAS L. EC RT CITY OF HERMOSA BEACH PH (310) 318-0302 FAX (310) 798-8926 SUBJECT: Date 07-06-04 DELIVERY: PROPOSALS FOR SECOND CHANCE BODY ARMOR 18 SECOND CHANCE, MONARCH SUMMIT LEVEL II VESTS WITH STANDARD TRAUMA PLATE AND ONE EXTRA CARRIER PER VEST U. PRICE EXTN. PRICE $ 589.00 $ 10,602 The following terms and conditions apply unless otherwise specified in the above quotation: Terms: Net 30 days, F.O.B. Los Angeles, CA. Oversize Charges: All prices are subject to our standard oversize charges as listed in our price list. Prices are subject to change after 90 days. Caution: The items quoted herein offer no protection from molten metal, sparks, flames, or caustic chemicals. VICE PRESIDENT Form 1000 * * * QUA TERM" STER e Uniform Manufacturing Company June 23, 2004 Thomas C. Eckert Captain Hermosa Beach Police Department 540 Pier Avenue Hermosa Beach, CA 90254 Subject: Second Chance Monarch Summit Vest Quote JUL 1 5 7004 cif, VIEW CITY G514ER.` ,!EACH (".N •j'?�- Dear Captain Eckert, Thanks you very much for the opportunity to quote you and your department for the new Second Chance Monarch Summit ballistic vests. We welcome any opportunity to provide your agency with good customer service and valued products. Anytime that you would like to explore Quartermaster as a primary vendor for your retail needs we would be honored to discuss this. In the future, I .would like to offer you the opportunity to visit our main distribution center and our Long Beach retail store. If you have any questions, please contact me directly at 562-572-3579. Respectfully, Kent L. Keyfauver Sales Representative Quartermaster, Inc. Enclosure (1) KLK 17600 Fabrica Way, Cerritos. CA 90703 • (562) 304-7301 • (562) 304-7352 Quartermaster Inc. - Price Quotation QUAR2d" I MA:STER:,.,: COMPANY NAME: Hermosa Beach Police Dept. CONTACT PERSON: Captain Thomas Eckert QM Contact: Kent L. Keyfauver (800) 834-7744, (562) 572-3579 Direct /SR91 �Ad_7336 fay . 6-23-04 e-mail address: kkevfauver(cDgmuniforms.com STOCK# COLOR DESCRIPTION SIZE QTY UNIT PRICE AMOUNT Z48-Sndchnlvl2 Unknown Second Chance, Monarch Summit, ballistic vest, M 2 S -XL 18 $ 555.00 $ 9,990.00 Oversize Charge: 2XL and above $ 635.00 $ - Z48 -apex Unknown Extra vest carrier per vest All 18 $ 54.34 $ 978.12 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - QUOTATION IS BASED ON SIZES & QUANTITIES GIVEN. IF SIZES & QUANTITIES SUBTOTAL CHANGE + OR - 10%, QUOTED PRICES ARE SUBJECT TO CHANGE. SALES TAX SHIPPING & HANDLING APPROXIMATELY 3% OF SUBTOTAL. S&H QUOTATION VALID FOR 60 DAYS TOTAL $ 10,968.12 $ 910.81 $ 72.00 $ 11,950.93 PRICES BASED ON REGULAR SIZES THANK YOU FOR YOUR BUSINESS! • 11 / 1' 11/44 i City of Hermosa Beach "Proposal for Second Chance Body Armor" Bid Opening 2:00 PM, July 15, 2004 Manufacturer's Make and Model No. : Force One F1 -DS -L2 Includes standard trauma plate and one extra carrier plate per vest. Delivery Time : 30 days ARO Unit Price : $476.00 x 18 each _ $8,568.00 Tax: $706.86 Total: $9,274.86 Fish. IS p f c : `.C. has prepared this proposal for City c shipping = .O.B. Destination. Dun and Bradstreet # 00-432-1519 Tax ID # 23-294-2737 Any questions related to this proposal should be directed to Jc Phone: 412-490-1292 Fax: 412-490-1205 Jon Ba wski ccount Manager Government Sales Fisher Scientific L.L.C. 2000 Park Lane 7th Floor Safety Pittsburgh, PA 15275 Monday, July 05, 2004 Honorable Mayor and Members of The Hermosa Beach City Council Regular meeting of July 27th, 2004 PURCHASE OF COMMAND CONSOLE FOR THE POLICE DEPARTMENT RECOMMENDATION Staff recommends that Council: 1. Appropriate $5235.00 from the CLEEP fund for the purchase of a Command Console to be installed in a police vehicle. Background The number of unusual incidents/special events requiring a major police presence has increased over the past few years. Additionally, equipment affording our police officers more choices in dealing with situations has become available. Therefore, it has become necessary to carry more equipment in the watch commander's vehicle so that it will be readily available. A few examples of new equipment include; less lethal weapons (Pepper Ball Guns), advanced CSI equipment (4 different kinds of cameras for specific uses), advanced DUI detection equipment. This equipment is only useful if it is readily available and properly maintained. The Command Console is a specially designed storage unit that is custom fitted into the back of a police vehicle to provide the proper storage environment and a proper level of security for this expensive equipment. FISCAL IMPACT The funds required for this piece of equipment will come from the California Law Enforcement Equipment Program (CLEEP) fund. Stewarts Products Inc. of Ontario Ca. is the sole source for this piece of equipment (using the materials we require considering the salt air environment here at the beach). The cost of the Command Console and the equipment/materials and labor required for installation is $5235.01. This price includes tax. Respectfully submitted, Captain Thomas Eckert Hermosa Beach Police Department Con S(ep en c urrell City Manager Fiscal Impact, Viki Co land Finance director 2j • Honorable Mayor and Members of The Hermosa Beach City Council • 7/.).10y July 20, 2004 Regular Meeting of July 27, 2004 CIP PROJECT NO. 02-626 COMMUNITY CENTER THEATER ADA UPGRADES, PHASES 1 AND 2 - ACCEPTANCE Recommendation: It is recommended that the City Council: 1. Accept the work by Pima Corporation of Los Angeles, California, for CIP Project No. 02-626 Community Center Theater ADA Upgrades as complete; 2. Authorize the Mayor to sign the Notice of Completion; 3. Authorize Staff to release retention payment to Pima Corporation upon receipt of unconditional release from all subcontractors and suppliers; and 4. Authorize Staff to release Pima Corporation from the Faithful Performance Bond and the Labor and Materials Bond. Background: On November 12, 2003, City Council approved entering into an agreement with Pima Corporation for the Community Center Theater ADA Upgrades. Analysis: The contractor has completed the construction of access ramps to the Community Center Complex. ADA Upgrades at the Community Center Theater and all related work have been completed to the satisfaction of the Director of Public Works/City Engineer. The project was constructed according to the plans, specifications and change orders prepared by Staff and completed on time and under budget. Therefore, Staff recommends acceptance of the work as complete. Fiscal Impact: Construction Appropriation from CDBG Fund Construction Cost Unexpended Amount $ 300,720 (281,533) $ 19,187 2k Respectfully submitted, Homayojrf Behbo•di Associate Engineer Noted for Fiscal Impact: Viki Copeland Finance Director Concur: Richa : D. Morgan, P.E. Director of Public Works/City Engineer Concur: Lf° ;1".1 Stephen ".:1' - II City Ma ager F:\895\PWFILES\CCITEMS\02-626 Comm Ctr Theater ADA Upgrades 7-27-04.doc 2 • • ). 7/0 July 20, 2004 Honorable Mayor and Members of Regular Meeting of the Hermosa Beach City Council July 27, 2004 APPROVE MEMORANDUM OF AGREEMENT — SANTA MONICA BAY BEACHES BACTERIA TMDL IMPLEMENTATION PLAN DEVELOPMENT JURISDICTIONAL GROUPS FIVE AND SIX Recommendation: It is recommended that the City Council: 1. Approve the Memorandum of Agreement for Jurisdictions Five and Six of the Santa Monica Bay Beaches Bacteria Total Maximum Daily Load Implementation Plan Development; 2. Approve funding contributions to the City of Redondo Beach for the consultant, Camp Dresser & McKee, Inc., to be used for the Implementation Plan Development in the amount of $20,591.00; and 3. Authorize the Mayor to execute and the City Clerk to attest the agreement subject to approval by the City Attorney. Summary: Santa Monica Bay Beaches Bacteria TMDL The California Water Quality Control Plan, Los Angeles Region (Basin Plan), sets beneficial use standards for water bodies in the region. Santa Monica Bay Beaches have been designated as an REC-1 beneficial use water body that provides for recreational water activities such. as swimming, wading, water skiing, skin and scuba diving involving body contact where ingestion of water is reasonably possible. To ensure that impaired water body's beneficial uses are maintained, Total Maximum Daily Loadings (TMDL) are developed by the Regional Water Quality Board (RWQCB) which are to specify the maximum amount of pollutants what a water body can receive and still meet water quality standards. On July 15, 2003, the RWQCB promulgated the Santa Monica Bay Beaches Bacteria (SMBBB) TMDL for both dry and wet weather. The goal of this TMDL is to reduce bacteria levels at the Santa Monica Bay Beaches where total and fecal coliform bacteria are used as indicators of the likely presence of disease -causing pathogens in surface waters. The RWQCB developed the allowable bacterial conditions using a "Reference Beach" approach. Leo Carrillo Beach, located in the west end of the County near the Ventura -Los Angeles County line, was selected as the reference beach. Since an exceedance of the allowable bacteria concentration for REC-1 use could be caused by runoff from natural sources, the RWQCB elected to establish allowable conditions based on the number of times the allowable concentration was exceeded. 21 • • The RWQCB believes that dry weather urban runoff (over irrigation of lawns, car washing, restaurant washout, etc.) and storm water conveyed by storm drains are the primary sources of bacteria to the Santa Monica Bay Beaches in dry and wet weather. The RWQCB identifies the following possible sources of bacteria: • Sanitary sewer leaks and spills • Illicit connections of sanitary lines to the storm drain system • Runoff from homeless encampments • Pet waste • Illegal discharges from recreational vehicle holding tanks • Direct illegal discharges from boats • Illicit discharges from private drains such as restaurants • Swimmer "wash -off' • Fecal matter from animals and birds • Vegetation and food waste • Runoff from roadways Hermosa Beach in Jurisdictions Five and Six The RWQCB, through the SMBBB TMDL, has established responsible agencies within nine jurisdictional groups. These groups were primarily defined along watershed boundaries and therefore may cross over governmental agency boundaries. The SMBBB TMDL further required that these groups develop a monitoring and an implementation plan, which would define strategies to identify sources of bacteria and elimination and remediation process. Jurisdictions Five and Six are comprised of responsible agencies, which include the Cities of El Segundo, Manhattan Beach, Redondo Beach, Torrance and agencies of Caltrans and the County of Los Angeles. Hermosa Beach is designated to cover drainage areas in both Jurisdictions Five and Six herein referred to as J5&6, for the total of 661 acres. The City has proceeded cooperatively with the other agencies involved to comply with the deadlines set forth by the RWQCB. Monitoring Plan The SMBBB TMDL required that the responsible agencies prepare a Coordinated Monitoring Plan (CMP). This plan has already been prepared and submitted to the RWQCB by the group members. The plan was subsequently approved by this agency. The CMP will be used to show the responsible agencies are in compliance with the SMBBB TMDL and will be the primary means by which the effectiveness of the Implementation Plan will be judged. A full copy of the CMP can be obtained from the County of Los Angeles web site: www.lacpw.orq. The agreement to conduct group monitoring with the associated cost will be submitted to Council for review and approval at a future date. Monitoring must begin no later than November 1, 2004. 2 Implementation Plan The SMBBB TMDL describes possible implementation strategies for both the dry weather and wet weather SMBBB TMDL's. The dry weather strategies included diversions to the sanitary sewer system, illicit discharge elimination, controlling other sources such as including ground water and "End of Pipe" (EOP) treatment. The wet weather highlighted three potential strategies: 1) Integrated Water Resources (IWR) Strategy for Beneficial Re -Use; 2) Upstream Structural and Non -Structural Control Strategy; and 3) Interim Diversion Strategy. The implementation of the dry weather strategies is to be implemented within three to six years. The implementation of the Types 2 and 3 wet weather strategies are allowed 10 years and the Type 1 strategy is allowed 18 years. J5&6 intend to pursue the IWR Strategy however, all approaches are to be analyzed so that the most cost and time effective alternative is proposed that will achieve compliance. The IWR Strategy is reflected in the following: The IWR strategy for achieving the bacteria SMBBB TMDL requirement is generally considered, but not limited to, the following: • Structural Best Management Practices (BMPs) o Storm drain/open channel low flow diversions to the sanitary sewer system (LFD's) o Water quality treatment plants with detention basins o Onsite treatment including UV or Ozone treatment units • Non -Structural BMPs o Source control for high bacteria locations o Public education & outreach o Codes, ordinances, and permitting o Fees and taxes • Treated water reuse o Ground water replenishment (spreading & direct injection) o Seawater Barrier injection o Direct reuse into gray water systems (irrigation & other non -potable uses) ■ Multi -use facilities incorporating structural BMPs, reuse, recreation, and other enhancements • Multiple pollutants — in addition to the bacteria pollutants, the plans must address other pollutants that have been identified as causing impairment of the beneficial use of Santa Monica Bay. The agencies within J5&6 have elected to develop an implementation plan that covers the areas within each group. The SMBBB TMDL requires "Responsible Agencies" (those defined by the RWQCB) to submit a draft implementation plan by March 15, 2005 for review and approval by the RWQCB. 3 • • Compliance Dates This TMDL does not currently have an enforcement mechanism, however, the RWQCB will most likely incorporate the TMDL's into the Los Angeles County Municipal Storm Water NPDES Permit. The RWQCB established the following timelines for achieving compliance: • Completion of implementation plan by March 15, 2005 • Summer — dry weather, three years after the effective date: July 15, 2006 • Winter — dry weather, six years after the effective date: July 15, 2009 • Wet weather, 10 to 18 years after the effective day, July 15, 2013 to 2021. The Wet weather also has a milestone date for achieving partial compliance. Project Objective The objective of the project is for the J5&6 agencies to jointly hire Consultants and vendors to undertake and perform the work program as outlined. The agencies within J5&6 further decided to cooperatively follow the CMP approved by the Regional Board and to retain a private laboratory to perform all the monitoring required by this plan. In addition, these jurisdictions had selected to jointly retain a consultant to develop the Implementation Plan. The consultant will complete the work in accordance with the schedule and develop an Implementation Plan that will achieve compliance with the SMBBB TMDL in the required time limits. Furthermore, the plan is expected to be prepared so that it will be f approved by the RWQCB. ' A Request for Proposals was issued and representatives of the jurisdictions held interviews. Three firms were considered: Kleinfelder, Brown & Caldwell, Camp Dresser & McKee, Inc. (CDM). The City of Redondo Beach will act as the lead agency to hire Camp Dresser and McKee, Inc. to develop the Implementation Plan; therefore, the City of Hermosa Beach and the other agencies in J5&6 needs to enter into an agreement with the City of Redondo Beach to pay for and administrate this professional services agreement. CDM was selected because of their experience and cost efficiency. They are also preparing the Implementation Plan for Jurisdictions One and Two (Malibu, Santa Monica, the City of Los Angeles and the County of Los Angeles). A copy of CDM's proposal is available for review in the Public Works Department. Conclusion Staff recommends that the City of Hermosa Beach enter into a Memorandum of Agreement with the City of Redondo Beach for SMBBB TMDL Implementation Plan Development and, subsequently, the other agencies within J5&6 to meet the requirements of the SMBBB TMDL. Fiscal Impact: • Implementation Plan is to be developed by the Consultant, CDM, no later than March 15, 2005. The Total Cost will be $185,000. The City's portion of the Total Cost will be $20,591.00. 4 • • • $18,000 is budgeted in Account 160-3102-4201 for this project. Public Works will reduce the amount for storm drain videotaping to compensate for the additional $$2,591 needed • A private laboratory will conduct monitoring to begin no later than November 1, 2004: cost to be determined. • Compliance to start no later than July 15, 2006, three years after the adoption date of this TMDL by the RWQCB; cost to be determined. Attachments: 1. Memorandum of Agreement 2. Resolution Respectfully submitted, Concur: Homayoun Behboodi Richard D. Morgan, P.E. Associate Engineer Director of Public Works/City Engineer Noted for fiscal impact: Concur: ki.cdvieet Viki Copeland Steph R. Burrell Finance Director City Manager H:\B95\PWFILES\CCITEMS\approve MOA SM bay TMDL plan 7-27-04.doc 5 • • District Agreement No. 07-4705 07 -LA -1 -PM 17.4/23.49 07 -LA -107 -pm 2.45/3.49 Santa Monica Bay Beaches Bacteria TMDL Implementation Plan Development Group 5 and 6 District Agreement No. 07-4705 EA 910204 MEMORANDUM OF AGREEMENT SANTA MONICA BAY BEACHES BACTERIA TMDL IMPLEMENTATION PLAN DEVELOPMENT JURISDICTIONAL GROUPS FIVE AND SIX This Memorandum of Agreement ("MOA") is entered into, effective as of July 1, 2004 when fully executed, by and among the City of Redondo Beach ("Redondo Beach"), a chartered municipal corporation; the City of Manhattan Beach ("Manhattan Beach"), a body corporate and politic; the City of Torrance ("Torrance"), a municipal corporation; the City of Hermosa Beach ("Hermosa Beach"), a body corporate and politic; the City of El Segundo (El Segundo), a general law city; the County of Los Angeles ("County"), a political subdivision of the State of California and the California Department of Transportation ("Caltrans") (individually "Party" and collectively, "Parties"), with respect to the following: RECITALS A. WHEREAS, on December 12, 2002, the Regional Water Quality Control Board, Los Angeles Region (RWQCB) approved Resolution No. 2002-022, adopting a Total Maximum Daily Load for bacteria during wet weather for Santa 1 ATTACHMENT 1 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • District Agreement No. 07-4705 Monica Bay Beaches ("Bacteria TMDL"), a true and correct copy of which is attached as Exhibit A hereto and incorporated herein; and B. WHEREAS, on June 19, 2003 the United States Environmental Protection Agency approved the TMDL, and on July 15, 2003 the RWQCB issued a letter stating that the "Effective Date" of the Bacteria TMDL July 15 , 2003; and C. WHEREAS, the Bacteria TMDL identifies several "Jurisdictional Groups" within the Santa Monica Bay watershed, with each "Jurisdictional Group" having a "Primary Jurisdiction," defined to be the jurisdiction comprising greater than fifty percent (50%) of the Jurisdictional Group's watershed area; and D. WHEREAS, the City of Manhattan Beach is the "Primary Jurisdiction" for Jurisdictional Group Five and El Segundo, Hermosa Beach, Los Angeles County and Caltrans are "additional responsible jurisdictions and agencies" in "Jurisdictional Group Five"; and E. WHEREAS, the City of Redondo Beach is the "Primary Jurisdiction" for Jurisdictional Group Six and Hermosa Beach, Manhattan Beach, Torrance, County of Los Angeles, and Caltrans are "additional responsible jurisdictions and agencies" in "Jurisdictional Group Six"; and 2 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • [';strict Agreement i`\io. 07-705 F. WHEREAS, the Parties recognize that the Bacteria TMDL is not self executing and has not been incorporated into the National Pollution Discharge Elimination System ("NPDES") permit for Waste Discharge Requirements for Municipal Storm Water and Urban Runoff Discharges within the County of Los Angeles, and the Incorporated Cities Therein Except the City of Long Beach dated December 13, 2001 ("NPDES Permit"), in the manner required by law to be enforceable; and G. WHEREAS, the Parties, nonetheless, desire to enter into a cooperative agreement to voluntarily develop and submit to the RWQCB a draft written report by 20 (twenty) months after the Effective Date of the Bacteria TMDL, and a final written report (collectively "Implementation Plan") by two (2) years after the Effective Date of the Bacteria TMDL outlining how each Party intends to cooperatively achieve the goals of the Bacteria TMDL. H. WHEREAS, the Parties desire to submit an Implementation Plan that may adopt the "integrated water resources approach" ("IWR Approach") identified in the Bacteria TMDL or an "end of pipe" ("EOP") approach, wherever technically, economically, and politically feasible, which will provide for final compliance within no more than 18 (eighteen) years after the effective date of the Bacteria TMDL; and 3 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • District Agreement No 07-4705 I. WHEREAS, the Parties desire to enter into this MOA voluntarily to, among other things: 1) set forth their intent to develop and submit an Implementation Plan that is consistent with the provisions of the Bacteria TMDL; 2) establish the roles of the Parties to prepare and submit an Implementation Plan; and 3) establish a formula to calculate the respective financial share of the costs to be contributed by each Party hereinto develop and prepare the Implementation Plan. NOW, THEREFORE, in consideration of the mutual benefits and representations. made herein, the Parties hereby agree as follows: AGREEMENT ARTICLE I — Purpose of MOA 1. Purpose of MOA — The Parties voluntarily enter this MOA to cooperatively and voluntarily devise and jointly fund an implementation plan that is consistent with the provisions of the Bacteria TMDL and which shall include the development and submittal of an Implementation Plan, with any incidental documentation necessary to achieve the goals consistent with the Bacteria TMDL. The activities described in this Article I, Section 1, shall be referred to hereinafter as the "Work." 2. "Maximum Extent Practicable" Standard — Nothing in this MOA, nor the described Work, nor any activity approved or carried out by the Parties hereunder shall be interpreted as a waiver of the position that the maximum effort to be undertaken by the Parties is subject to the "Maximum Extent Practicable" standard set forth in the Clean Water Act. 4 Santa Monica Bacteria TMDL Jurisdictional Groups 5 arid 6 Implementation Plan Development Memorandum of Agreement District Agreement No. 07-4705 ARTICLE II — Organization 1. Meetings — The Parties agree that their respective Representatives (as defined below) shall meet, at minimum, once per month to discuss the development, preparation and submittal of the Work ("Work Meetings"). The Parties at Work Meetings shall meet in person, although teleconference meetings may be held upon agreement of the Representatives. The Chair, as defined below, shall prepare and distribute a draft written agenda for each Work Meeting to all Representatives for comments. The Parties shall mutually agree upon a final agenda for each Work Meeting. The agenda shall be distributed at least four (4) business days prior to the date of each Work Meeting to the Representatives, except in the case of a Special Meeting wherein the agenda shall be distributed 24 hours before the Special Meeting. The Chair or any three (3) Parties may call a Special Meeting to discuss urgent issues that require immediate attention or action by the Parties prior to the date of the next Work Meeting. Special Meetings may be held in person or by teleconference. The Parties must be given two (2) days written notice of the Special Meetings as provided by this MOA 2. Quorum — A quorum shall exist if a Work Meeting or Special Meeting is attended in person or via teleconference by at least five (5) Representatives; except however, no quorum shall exist unless one of the Primary Jurisdictions, Manhattan Beach or Redondo Beach, is present. No official or binding action may be taken at any meetings without a quorum 5 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement District Agreement No. 07-4705 3. Representatives — Each Party shall appoint one or more representative(s) ("Representative") authorized to vote that party's single vote at the Work Meetings or Special Meetings, although other individuals of Party may also attend the meeting the name(s) of the Representative(s) shall submit be submitted at least two (2) days before the first scheduled Work Meeting. A Party may designate a new Representative(s) to act on its behalf by providing written or electronic mail notice to both Primary Jurisdiction Representatives at anytime thereafter but at least two (2) days before the next Work Meeting." A Representative from each Party shall make every effort to attend every Work Meeting and Special Meeting. If a Party Representative will be absent from a Work Meeting or Special Meeting that Party may appoint another Party's Representative to act as its proxy, with full power to vote as directed by the absent Party. Any such proxy arrangement shall be memorialized in writing or by electronic mail transmitted to both Primary Jurisdictions at least 24 hours before the date of the Work or Special Meeting. Proxy representation shall be counted in determining a quorum. 4. Chair — The two (2) Primary Jurisdictions shall act as Co-chairs, with the position of Chair rotating among the two Co-chairs on a month to month basis. In the event the Chair, for any particular month, is unable to perform its responsibilities, the Co-chair shall become Chair. The Primary Jurisdictions shall jointly sign all written communications made on behalf of all Parties. All written communications shall be copied to all Parties to this MOA. 6 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • District Agreement No. 07-4705 5. Information Sharing — The Parties mutually agree to share, to the extent not otherwise prohibited by law or by legal or trade secret privilege, all information required to develop, prepare and submit documents required for the Work, including monitoring data, CADD and GIS or other electronic data. Such sharing shall be subject to any applicable license agreements or other restrictions. All data shared among the Parties shall be provided "as is" and without warranties as to accuracy or as to any other characteristic, whether express or implied. The intent of this data -sharing provision is to facilitate the Work. The Parties agree not to use such data for tasks not related to the Work. 6. Voting — Any action taken at any Work Meeting or Special Meeting shall be approved by a 2/3 majority vote of the Representatives attending the meeting or properly noticed proxy, and each said approval vote must include an affirmative vote by one (1) of the Primary Jurisdictions to be effective and binding. Each Party shall be bound by any action approved by the Parties at a Work Meeting or Special Meeting, whether that Party was present or absent from the Work Meeting or Special Meeting. Each party shall have one vote. 7. Subcommittees — The Representatives acting in a Work Meeting or Special Meeting may appoint such subcommittees as they believe appropriate and useful to conduct the work set forth in this MOA. 8. Minutes — The Chair shall select a secretary to draft and distribute written minutes of all Work and Special Meetings to the Party Representatives at the addresses designated below within five (5) work days after each Work or Special Meeting. 7 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement District Agreement No. 07-4705 ARTICLE III — FUNDING AND CONTRACTING 1. Funding Agreements — Any funds contributed for the Work, including contributions for consultants or other services as agreed upon by. the Parties, shall be calculated using the cost-sharing formula described in Exhibit B. All funding shall apply to the Work, and shall not be used to implement the Work. The total contribution by all of the Parties shall not exceed $185,000 unless otherwise -agreed to by the Parties by written amendment of this MOA. Caltrans funding encumbered under this MOA is evidenced by the signature of its District Budget Manager certifying as to funds in the maximum sum of $1,508 having been allocated and encumbered to pay Caltrans share of the Work costs. Any cost to be invoiced above this sum will require an amendment to this MOA. 2. Contracting — Should the Parties agree to obtain goods or services from a Third Party for the development, preparation and submittal of the Work, the Parties shall agree upon one Party to enter into an agreement with the Third Party. Said Party will be the "Contracting Agency." The Parties agree that Redondo Beach be the Contracting Agency. The Third Party contract shall incorporate the contracting requirements and policies of Redondo Beach that may be attached to the Request for Proposal (RFP). The Third Party contract shall recite, however, that it is for the benefit of the Parties, and the Third Party shall be paid solely from the contributions from the Parties in the amounts set forth in Exhibit B. The Third Party contract shall require the Third Party to look solely to Redondo Beach for payment of the funds contributed by the Parties and look solely to Redondo Beach to resolve any issues regarding that contract. The 8 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement District Agreement No. 07-4705 Scope of Work of Third Party contract shall be presented to the Representatives for review and approval prior to execution of the contract. The Third Party contract shall also provide that it may be terminated upon sixty (60) days written notice by Redondo Beach, and shall otherwise be in compliance with Redondo Beach's regulations, ordinances and policies. No Party shall be obligated hereunder to bring any action against the Third Party for breach of its obligations under the contract. 3. Supervision of Third Party —Redondo Beach shall be responsible for coordinating the activities of Third Party, including coordinating the scope of work to be performed by the Third Party. Redondo Beach shall forward all invoices submitted by the Third Party to the Representatives for review and comment. 4. Payment — Upon contract execution with a Third Party, Redondo Beach shall invoice each Party for its respective share of the contracts total costs based on the formula described in Exhibit B. Each Party shall pay that invoice within sixty (60) days of receipt. Any change orders costs will be invoiced separately up to the maximum amount shown in Exhibit B. 5. Caltrans Budget Contingency — All obligations of Caltrans under the term of this Agreement are subject to the appropriation of the resources by the Legislature and the allocation of resources by the California Transportation Commission. This MOA has been signed by Caltrans before ascertaining the availability of federal or state legislative appropriation of funds, for the mutual 9 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • District Agreement No. 07-4705 benefit of the Parties in order to avoid program and fiscal delays that would occur if the MOA was executed after that determination was made. This MOA is valid and enforceable as to Caltrans, as if sufficient funds have been made available to Caltrans by the United States Government or California State Legislature for the purposes set forth in this MOA. If the United States Government or the California State Legislature does not appropriate sufficient funds for Caltrans to participate in this MOA, this MOA may be amended in writing by the Parties to reflect any agreed upon reduction in the percentage of funds contributed by Caltrans to continue its participation in this MOA. Cal,#rans however has the option to withdraw from this MOA in the event sufficient fund are not appropriated for Caltrans. Should Caltrans exercise its option to withdraw from this MOA, Caltrans shall remain responsible for its share of liability, if any, incurred while participating in this MOA. ARTICLE IV — GENERAL PROVISIONS 1. Term of MOA — This MOA shall continue in effect until the earlier of July 1, 2006 or six (6) months after the Implementation Plan is approved in writing by the RWQCB, unless earlier terminated or extended by agreement of all Parties to the MOA. A Party may withdraw from this MOA ("Withdrawing Party") by sending a letter to each Party including the Primary Jurisdictions stating that Party's decision to withdraw from this MOA. However, prior to withdrawing, the Withdrawing Party must be current on all financial obligations resulting from this MOA. Once the Party withdraws from the MOA it will no longer be a participant 10 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • District Agreement No. 07-4705 in the Work prepared under this MOA. Further, the Withdrawing Party forfeits any funds contributed prior to withdrawal from the MOA. Withdrawal is effective sixty (60) days after the date of written notice to the Primary Jurisdictions. If, however, the Withdrawing Party is Redondo Beach, withdrawal is effective sixty (60) days after executing an assignment of the Third Party contract to another Party to the MOA to serve as the new Contracting Agency. 2. - Amendment — This MOA may be amended in writing in the same manner the MOA was entered. 3. Authority — Each of the persons signing below on behalf of a Party represents and warrants that they are authorized to sign this MOA on behalf of such Party. 4. Counterparts - This MOA may be signed in counterparts, and each counterpart shall be deemed an original, but all of which shall constitute one and the same instrument. A copy of all signature pages is attached hereto as Exhibit C and made a part of this Agreement. 5. Indemnification- Each Party shall indemnify, defend, and hold harmless each of the other Parties, including their Special Districts, elected and appointed officers, agents and employees, from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert witness fees), arising from or connected with the acts arising from and/or relating to this MOA. 6. Mutual Grant of Entry- During the term of this MOA, each Party hereby grants to every other Party the right of access and entry to all storm 11 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • District Agreement No. 07-4705 drains, creeks, beaches, and existing monitoring stations at beaches subject to this MOA (the "Property") to achieve the purposes of this MOA. Prior to exercising said right of entry, the entering Party shall provide written notice to the Party who owns and/or retains jurisdiction over the Property. For the purposes of this provision, written notice shall be delivered to the Party Representative at least 48 hours in advance of entry and the Party seeking entry must receive confirmation to proceed from the Party that owns and/or retains jurisdiction over the Property before entering the Property. The Parties shall indemnify, defend and hold harmless each other Party, their Special Districts, elected and appointed officers, employees, and agents, from and against any and all liability, including but not limited to demands, claims, actions, fees, costs, and expenses (including attorney and expert fees), arising from or connected with the entry onto the Property. This indemnification is in addition to the other indemnities made herein. 7. Access to Caltrans Facilities- Any Party intending to enter onto a Caltrans right of way shall first make a written request to the Caltrans party listed in Exhibit B; identifying the site location, extent of access by persons (and equipment if any), dates and times of entry, as well as an explanation of the purpose of that entry. Caltrans will thereafter determine, within ten (10) working days, if that entry will be allowed without a formal encroachment permit issued by the District Permit Engineer as an authorized presence of non -Caltrans parties not interfering with or threatening the safety of the traveling public or the integrity of the Caltrans' infrastructure. In such case, Caltrans will condition that right of 12 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • District Agreement No. 07-4705 entry on the accompaniment of a Caltrans representative who shall be empowered to restrict or limit the access of those permitees as deemed necessary, in the sole discretion of Caltrans. Where adverse impacts to traffic or the traveled way can be anticipated by Caltrans, Caltrans may require the applicant Party to submit a formal encroachment permit application, to be filed and completed together with Traffic Control Plans when necessary (which must be prepared by or under the supervision of a traffic engineer licensed in the State of California) with the District Permit Engineer. An encroachment permit may require as much as six (6) weeks to be issued depending upon the extent of coordination and development of traffic controls required for that access. 8. Notices— Any notices, bills, invoices, or reports relating to this MOA, and any request, demand, statement or other communication required or permitted hereunder shall be in writing and shall be delivered to the Representative of the Party at the addresses set forth herein below. Written notice shall include notice delivered via email. A notice shall be deemed to have been received on (a) the day of delivery, if delivered by hand duringregular business hours or by confirmed facsimile or by confirmed email; or (b) on the third business day following deposit in the United States mail, postage prepaid to the addresses set forth herein. 9. Relationship of the Parties- The Parties are, and shall at all times remain as to each other, wholly independent entities. No Party to this MOA shall have power to incur any debt, obligation, or liability on behalf of any other Party except as expressly provided by this MOA No employee, agent, or officer of a 13 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • District Acq reement No. 07-4705 Party shall be deemed for any purpose whatsoever to be an agent, employee or officer of another Party. 10. Governing Law — This MOA shall be governed, interpreted, construed and enforced in accordance with the law of the State of California. 11. Severability- If any provision of this MOA shall be determined by any court to be invalid, illegal or unenforceable to any extent, the remainder of this MOA shall not be affected and this MOA shall be construed as if the invalid, illegal or unenforceable provision had never been contained in this MOA. 14 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement District Agreement No. 07-4705 IN WITNESS WHEREOF, the Parties hereto have signed this MOA on the date afterwards indicated. City of Manhattan Beach By: Date: Geoff Dolan, City Manager Attest: Approved as to Form: By: By: Liza Tamura, City Clerk Robert V. Wadden, City Attorney Mailing Address: City of Manhattan Beach Public Works Department 3621 Bell Ave. Manhattan Beach, CA 90266 City of Hermosa Beach By: Date: Art Yoon, Mayor Attest: Approved as to Form: By: By: Elaine Doerfling, City Clerk Michael Jenkins, City Attorney Mailing Address: City of Hermosa Beach 1315 Valley Dr Hermosa Beach, CA 90254 15 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement City of Redondo Beach a Chartered Municipal Corporation By: Attest: Gregory C. Hill, Mayor District Agreement No. 07-4705 Date: Approved as to Form: By: By: Sandy Forrest, City Clerk John Eastman, Assistant City Attorney Mailing Address: City of Redondo Beach Engineering and Building Services Department 415 Diamond Street Redondo Beach, CA 90277 City of Torrance a Municipal Corporation By: Date: Dan Walker, Mayor Attest: Approved as to Form: By: By: Sue Herbers, City Clerk John L. Fellows, City Attorney Mailing Address: City.of Torrance Public Works Department — Engineering Division 20500 Madrona Torrance, CA 90503 16 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement City of El Segundo a General Law City By: Attest: Mary Strenn, City Manager • District Agreement No. 07-4705 Date: Approved as to Form: Mark D. Hensley, City Attorney By: By: Cindy Mortesen, City Clerk Karl H. Berger, Assistant City Attorney Mailing Address: City of El Segundo Public Works Department 350 Main Street El Segundo, CA 90245 17 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • District Agreement No. 07-4705 County of Los Angeles Acting on behalf of the Los Angeles County Flood Control District By: Date: Don Knabe, Chair - Board of Supervisor By: Date: James A. Noyes, Chief Engineer Attest: Approved as to Form: VIOLET VARONA-LUKEN Executive Office of the Board of Supervisors of the County of Los Angeles OFFICE OF THE COUNTY COUNSEL By: By: Deputy Deputy Mailing Address: Los Angeles County Department of Public Works Watershed Management Division, 11th Floor 900 South Fremont St. Alhambra, CA 91803 18 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement STATE OF CALIFORNIA Department of Transportation Tony V. Harris Director of Transportation, Acting By: Douglas R. Failing District Director District Agreement No. 07-4705 Date: Approved as to Form & procedure: Certify as to funds: By: William B. Bassett Attorney Certify as to Financial Terms and Conditions: By: Accounting Administrator By: Address: California Department of Transportation District 07 120 South Spring Street, MS 13 Los Angeles, California 90012 Attention: Bob Wu District Budget Manager 19 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • District Agreement No, 07-4705 Exhibit A Copy of Santa Monica Bay Beaches Bacterial Total Maximum Daily Load Resolution No. 2002-022 (6 pages) Attachment A (17 pages) Attachment B (1 page) Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement • • Dstrict Agreement No. 07-4705 Exhibit B Cost Sharing Formula All Parties agree to share the cost of preparing the draft and final implementation plan for Jurisdictional Groups 5 & 6 on a tributary area basis. The following table shows cost sharing distribution and maximum contribution amount: - Jurisdiction Tributary Area (acres) Contribution Percentage Maximum Contribution Amount Manhattan Beach 2023 24.991% $46,233 • Hermosa Beach 901 11.130% $20,591 Redondo Beach 2623 32.403% $59,946 Torrance 2289 28.277% $52,312 El Segundo 21 0.259% $479 County of Los Angeles 172 2.125% $3,931 Caltrans 66 0.815% $1,508 Total 8095 100.000% $185,000 Santa Monica Bacteria TMDL Jurisdictional Groups 5 and 6 Implementation Plan Development Memorandum of Agreement State of California California Regional Water Quality Control Board, Los Angeles Region RESOLUTION NO. 2002-022 December 12, 2002 Amendment to the Water Quality Control Plan (Basin Plan) for the Los Angeles Region to Incorporate Implementation Provisions for the Region's Bacteria Objectives and to Incorporate a Wet -Weather Total Maximum Daily Load for Bacteria at Santa Monica Bay Beaches WHEREAS, the California Regional Water Quality Control Board, Los Angeles Region, finds that: 1. The federal Clean Water Act (CWA) requires the California Regional Water Quality Control Board, Los Angeles Region (Regional Board) to develop water quality standards which include beneficial use designations and criteria to protect beneficial uses for each water body found within its region. 2. The Regional Board carries out its CWA responsibilities through California's Porter -Cologne Water Quality Control Act and establishes water quality objectives designed to protect beneficial uses contained in the Water Quality Control Plan for the Los Angeles Region (Basin Plan). 3. Section 303(d) of the CWA requires states to identify and to prepare a list of water bodies that do not meet water quality standards and then to establish load and waste load allocations, or a total maximum daily load (TMDL), for each water body that will ensure attainment of water quality standards and then to incorporate those allocations into their water quality control plans. 4. Many of the beaches along Santa Monica Bay were listed on California's 1998 section 303(d) list, due to impairments for coliform or for beach closures associated with bacteria generally. The beaches appeared on the 303(d) list because the elevated bacteria and beach closures prevented full support of the beaches' designated use for water contact recreation (REC-1). 5. A consent decree between the U.S. Environmental Protection Agency (USEPA), Heal the Bay, Inc. and BayKeeper, Inc. was approved on March 22, 1999. This court order directs the USEPA to complete TMDLs for all the Los Angeles Region's impaired waters within 13 years. A schedule was established in the consent decree for the completion of 29 TMDLs within 7 years, including completion of a TMDL to reduce bacteria at Santa Monica Bay beaches by March 2002. The remaining TMDLs will be scheduled by Regional Board staff within the 13 -year period. 6. The elements of a TMDL are described in 40 CFR 130.2 and 130.7 and section 303(d) of the CWA, as well as in USEPA guidance documents (e.g., USEPA, 1991). A TMDL is defined as "the sum of the individual waste load allocations for point sources and load allocations for nonpoint sources and natural background" (40 CFR 130.2). Regulations further stipulate that TMDLs must be set at "levels necessary to attain and maintain the applicable narrative and numeric water quality standards with seasonal variations and a margin of safety that takes into account any lack of knowledge concerning the relationship between effluent limitations ATTACHMENT 2 • • Resolution No. 2002-022 Page 2 and water quality" (40 CFR 130.7(c)(1)). The provisions in 40 CFR 130.7 also state that TMDLs shall take into account critical conditions for stream flow, loading and water quality parameters. 7. Upon establishment of TMDLs by the State or USEPA, the State is required to incorporate the TMDLs along with appropriate implementation measures into the State Water Quality Management Plan (40 CFR 130.6(c)(1), 130.7). The Basin Plan and applicable statewide plans serve as the State Water Quality Management Plans governing the watersheds under the jurisdiction of the Regional Board. 8. Santa Monica Bay is located in Los Angeles County, California. The proposed TMDL addresses documented bacteriological water quality impairments at 44 beaches from the Los Angeles/Ventura County line, to the northwest, to Outer Cabrillo Beach, just south of the Palos Verdes Peninsula. 9. The Regional Board is establishing the above-mentioned TMDL to preserve and enhance the water quality at Santa Monica Bay beaches and for the benefit of the 55 million beachgoers, on average, that visit these beaches each year. At stake is the health of swimmers and surfers and associated health costs as well as sizeable revenues to the local and state economy. Estimates are that visitors to Santa Monica Bay beaches spend approximately $1.7 billion annually. 10. The Regional Board's goal in establishing the above-mentioned TMDL is to reduce the risk of illness associated with swimming in marine waters contaminated with bacteria. Local and national epidemiological studies compel the conclusion that there is a causal relationship between adverse health effects, such as gastroenteritis and upper respiratory illness, and recreational water quality, as measured by bacteria indicator densities. The water quality objectives on which the TMDL numeric targets are based will ensure that the risk of illness to the public from swimming at Santa Monica Bay beaches generally will be no greater than 19 illnesses per 1,000 swimmers, which is defined by the US EPA as an "acceptable health risk"in marine recreational waters. 11. Interested persons and the public have had reasonable opportunity to participate in review of the amendment to the Basin Plan. Efforts to solicit public review and comment include staff presentations to the Santa Monica Bay Restoration Project's Bay Watershed Council and Technical Advisory Committee between May 1999 and October 2001 and creation of a Steering Committee in July 1999 to provide input on scientific and technical components of the TMDL with participation by the Southern California Coastal Water Research Project, City of Los Angeles, County of Los Angeles Department of Public Works, County Sanitation Districts of Los Angeles County, Heal the Bay, and Santa Monica Bay Restoration Project. 12. A first draft of the TMDL for bacteria at Santa Monica Bay beaches was released for public comment on November 9, 2001; an interim draft TMDL covering wet weather only was released on June 21, 2002, for discussion at a public workshop; and a public workshop on the draft Wet -Weather TMDL was held on June 27, 2002 at a regularly scheduled Regional Board meeting. 13. A final draft of the Wet -Weather TMDL along with a Notice of Hearing and Notice of Filing were published and circulated 45 days preceding Board action; Regional Board staff responded to oral and written comments received from the public; and the Regional Board Final — 12/12/02 Resolution No. 2002-022 Page 3 held a public hearing on September 26, 2002 to consider adoption of the Wet -Weather TMDL. 14. The Regional Board continued the item from the September 26, 2002 Board meeting to the December 12, 2002 Board meeting to give staff time to make revisions based on public comments and Board discussion at the September 26, 2002 Board meeting. Specifically, the Board wanted an implementation program that was reasonable and as short as practicable given the testimony on impairments to the REC-1 beneficial use. 15. The Regional Board recognizes that there are two broad approaches to implementing the TMDL. One approach is an integrated water resources approach that takes a holistic view of regional water resources management by integrating planning for future wastewater, storm water, recycled water, and potable water needs and systems; focuses on beneficial re -use of storm water, including groundwater infiltration, at multiple points throughout a watershed; and addresses multiple pollutants for which Santa Monica Bay or its watershed are listed on the CWA section 303(d) List as impaired. The other approach is a non-integrated water resources approach. Some responsible jurisdictions and agencies have indicated a preference to take an integrated water resources approach to realize the benefits of re -using storm water to preserve local groundwater resources and to reduce reliance on imported water. The Regional Board recognizes that an integrated water resources approach not only provides water quality benefits to the people of the Los Angeles Region, but also recognizes that the responsible jurisdictions implementing this TMDL can serve a variety of public purposes by adopting an integrated water resources approach. An integrated water resources approach will address multiple pollutants, and as a result, responsible jurisdictions can recognize cost -savings because capital expenses for the integrated approach will implement several TMDLs that address pollutants in storm water. In addition, jurisdictions serve multiple roles for their citizenry, and an integrated approach allows for the incorporation and enhancement of other public goals such as water supply, recycling and storage; environmental justice; parks, greenways and open space; and active and passive recreational and environmental education opportunities. The Regional Board acknowledges that a longer timeframe is reasonable for an integrated water resources approach because it requires more complicated planning and implementation such as identifying markets for the water and efficiently siting storage and transmission infrastructure within the watershed(s) to realize the multiple benefits of such an approach. 16. Therefore, after considering testimony, the Regional Board directed staff to adjust the implementation provisions of the TMDL to allow for a longer implementation schedule (up to 18 years) only when the responsible jurisdictions and agencies clearly demonstrate their intention to undertake an integrated water resources approach and justify the need for a longer implementation schedule. In contrast, testimony indicated that a shorter implementation schedule (up to 10 years) is reasonable and practicable for non-integrated approaches because the level of planning is not as complicated. 17. A revised draft of the Basin Plan amendment and Tentative Resolution were circulated 45 days preceding Board action. Regional Board staff responded to oral and written comments received from the public on the revised draft. The Regional Board held a second public hearing on December 12, 2002 to consider adoption of the Wet -Weather TMDL. Final — 12/12/02 Resolution No. 2002-022 Page 4 18. On October 25, 2001, the Regional Board adopted Resolution 2001-018 establishing revised bacteriological water quality objectives for the Water Contact Recreation (REC-1) beneficial use, and the TMDL is intended to accompany and to implement the revised water quality objectives. The State Water Resources Control Board approved the Regional Board's Basin Plan amendment on July 18, 2002 in State Board Resolution 2002-0142, the Office of Administrative Law approved it on September 19, 2002 in OAL File No. 02-0807-01-S, and the US EPA approved it on September 25, 2002. 19. Under certain circumstances and through the TMDL development process, the Regional Board proposes to implement the aforementioned revised bacteria objectives using either a `reference system/anti-degradation approach' or a `natural sources exclusion approach.' As required by the CWA and Porter -Cologne Water Quality Control Act, the Basin Plan includes beneficial uses of waters, water quality objectives to protect those uses, an anti -degradation policy, collectively referred to as water quality standards, and other plans and policies necessary to implement water quality standards. This TMDL and its associated waste load allocations, which will be incorporated into relevant permits, are the vehicles for implementation of the bacteria standards as required under Water Code section 13242. 20. Both the `reference system/anti-degradation approach' and the `natural sources exclusion approach' recognize that there are natural sources of bacteria that may cause or contribute to exceedances of the single sample objectives. 21. The Regional Board's intent in implementing the bacteria objectives using a `reference system/anti-degradation approach' is to ensure that bacteriological water quality is at least as good as that of a reference site and that no degradation of existing bacteriological water quality is permitted where existing bacteriological water quality is better than that of a reference site. The Regional Board's intent in implementing the bacteria objectives using a `natural sources exclusion approach' is to ensure that all anthropogenic sources of bacteria are controlled such that they do not cause an exceedance of the single sample objectives. These approaches are consistent with state and federal anti -degradation policies (State Board Resolution No. 68-16 and 40 C.F.R. 131.12), while acknowledging that it is not the intent of the Regional Board to require treatment or diversion of natural coastal creeks or to require treatment of natural sources of bacteria from undeveloped areas. While treatment and diversion of natural sources may fully address the impairment of the water contact recreation beneficial use, such an approach may adversely affect valuable aquatic life and wildlife beneficial uses in the Region. 22. For the Wet -Weather and Dry -Weather Bacteria TMDLs at Santa Monica Bay beaches, Leo Carrillo Beach and its associated drainage area, Arroyo Sequit Canyon, were selected as the local reference system until other reference sites or approaches are evaluated and the necessary data collected to support the use of alternative reference sites or approaches when the TMDL is revised four years after the effective date. Leo Carrillo Beach was selected as the interim reference site because it best met the three criteria for selection of a reference system. Specifically, its drainage is the most undeveloped subwatershed in the larger Santa Monica Bay watershed, the subwatershed has a freshwater outlet (i.e., creek) to the beach, and adequate historical shoreline monitoring data were available. It is the intent of the Regional Board to re-evaluate the use of Leo Carrillo Beach due to potential problems arising from the heavy recreational use of the beach and the close proximity of two campgrounds. 23. Northern Bay beach monitoring sites are fewer in number and provide less comprehensive data than the extensive shoreline monitoring network elsewhere in Santa Monica Bay. Final — 12/12/02 • • Resolution No. 2002-022 Page 5 24. The numeric targets in this TMDL are not water quality objectives and do not create new bases for enforcement against dischargers apart from the water quality objectives they translate. The targets merely establish the bases through which load allocations and wasteload allocations (WLAs) are calculated. WLAs are only enforced for a dicharger's own discharges, and then only in the context of it National Pollutant Discharge Elimination System (NPDES) permit, which must be consistent with the assumptions and requirements of the WLA. The Regional Board will develop permit requirements through a subsequent permit action that will allow all interested persons, including but not limited to municipal storm water dischargers, to provide comments on how the waste load allocations will be translated into permit requirements. 25. The Regional Board has the authority to authorize compliance schedules through the basin planning process. In this Basin Plan amendment, the Regional Board establishes a schedule for implementation that affords the responsible jurisdictions and agencies up to ten or eighteen years, depending on the implementation approaches pursued, to implement this Wet - Weather Bacteria TMDL. 26. Previously, the Regional Board adopted a Dry -Weather Bacteria TMDL for the Santa Monica Bay Beaches. The Dry -Weather TMDL includes implementation provisions contained in Table 7-4.3 of the Basin Plan, including a provision to reconsider two years after the effective date the Dry -Weather TMDL and specifically the reference beach(es) used. Because that effort overlaps with reconsideration of the reference beach(es) anticipated by this Wet - Weather TMDL, the Regional Board proposes to coordinate the reconsiderations of the reference beach approach to assure efficiency and consistency in implementing the two Santa Monica Beaches TMDLs. 27. The basin planning process has been certified as functionally equivalent to the California Environmental Quality Act requirements for preparing environmental documents (Public Resources Code, Section 21000 et seq.) and as such, the required environmental documentation and CEQA environmental checklist have been prepared. 28. The proposed amendment results in no potential for adverse effect (de minimis finding), either individually or cumulatively, on wildlife. 29. The regulatory action meets the "Necessity" standard of the Administrative Procedures Act, Government Code, section 11353, subdivision (b). 30. The Basin Plan amendment incorporating a TMDL for bacteria at Santa Monica Bay beaches must be submitted for review and approval by the State Water Resources Control Board (State Board), the State Office of Administrative Law (OAL), and the USEPA. The Basin Plan amendment will become effective upon approval by OAL and USEPA. A Notice of Decision will be filed. THEREFORE, be it resolved that pursuant to Section 13240 and 13242 of the Water Code, the Regional Board hereby amends the Basin Plan as follows: 1. Pursuant to sections 13240 and 13242 of the California Water Code, the Regional Board, after considering the entire record, including oral testimony at the hearing, hereby adopts the amendments to Chapters 3 and 7 of the Water Quality Control Plan for the Los Angeles Region, as set forth in Attachment A hereto, to incorporate the elements of the Santa Monica Final — 12/12/02 • • Resolution No. 2002-022 Page 6 Bay Beaches Bacteria TMDL for wet weather and to implement the water quality objectives for bacteria set to protect the water contact recreation beneficial use. 2. Pursuant to sections 13240 and 13242 of the California Water Code, the Regional Board, after considering the entire record, including oral testimony at the hearing, hereby adopts the amendments to Chapter 7 of the Water Quality Control Plan for the Los Angeles Region, as set forth in Attachment B hereto, to amend Table 7-4.3 of the Santa Monica Bay Beaches Bacteria TMDL for dry weather to change the date for revision of the TMDL from two years after the effective date to four years after the effective date [of the Wet -Weather TMDL] to achieve consistency in scheduling between the Dry -Weather and Wet -Weather TMDLs. 3. The Executive Officer is directed to exercise authority under Water Code section 13267, or other applicable law, to require additional monitoring data in the northern Bay beach regions to ensure that wet weather bacteria exposure is adequately quantified before the TMDL is reconsidered in four years. 4. The Executive Officer is directed to forward copies of the Basin Plan amendment to the State Board in accordance with the requirements of section 13245 of the California Water Code. 5. The Regional Board requests that the State Board approve the Basin Plan amendment in accordance with the requirements of sections 13245 and 13246 of the California Water Code and forward it to OAL and the USEPA. 6. If during its approval process the State Board or OAL determines that minor, non -substantive corrections to the language of the amendment are needed for clarity or consistency, the Executive Officer may make such changes, and shall inform the Board of any such changes. 7. The Executive Officer is authorized to sign a Certificate of Fee Exemption. I, Dennis A. Dickerson, Executive Officer, do hereby certify that the foregoing is a full, true, and correct copy of a resolution adopted by the California Regional Water Quality Control Board, Los Angeles Region, on December 12, 2002. ORIGINAL SIGNED BY Dennis A. Dickerson Executive Officer Final — 12/12/02 • • Attachment A to Resolution No. 2002-022 Amendment to the Water Quality Control Plan — Los Angeles Region to incorporate Implementation Provisions for the Region's Bacteria Objectives and to incorporate the Santa Monica Bay Beaches Wet -Weather Bacteria TMDL Adopted by the California Regional Water Quality Control Board, Los Angeles Region on December 12, 2002. Amendments: List of Figures, Tables and Inserts Add under Chapter 7, Section 7-4 (Santa Monica Bay Beaches Bacteria TMDL): Tables 7-4.4. Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only): Elements 7-4.5. Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only): Final Allowable Exceedance Days by Beach Location 7-4.6. Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only): Interim Compliance Targets by Jurisdictional Groups 7-4.7. Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only): Significant Dates Chapter 3. Water Quality Objectives, "Bacteria, Coliform" Add under "Implementation Provisions for Water Contact Recreation Bacteria Objectives" The single sample bacteriological objectives shall be strictly applied except when provided for in a Total Maximum Daily Load (TMDL). In all circumstances, including in the context of a TMDL, the geometric mean objectives shall be strictly applied. In the context of a TMDL, the Regional Board may implement the single sample objectives in fresh and marine waters by using a `reference system/antidegradation aporoach' or `natural sources exclusion approach' as discussed below. A reference system is defined as an area and associated monitoring point that is not impacted by human activities that potentially affect bacteria densities in the receiving water body. These approaches recognize that there are natural sources of bacteria, which may cause or contribute to exceedances of the single sample objectives for bacterial indicators. They also acknowledge that it is not the intent of the Regional Board to require treatment or diversion of natural water bodies or to require treatment of natural sources of bacteria from undeveloped areas. Such requirements, if imposed by the Regional Board, could adversely affect valuable aquatic life and wildlife beneficial uses supported by natural water bodies in the Region. Under the reference system/antidegradation implementation procedure, a certain frequency of exceedance of the single sample objectives above shall be permitted on the basis of the observed exceedance frequency in the selected reference system or the targeted water body, whichever is less. The reference system/anti-degradation approach ensures that bacteriological water quality is at least as good as that of a reference system and that no degradation of existing bacteriological water quality is permitted where existing bacteriological water quality is better than that of the selected reference system. Under the natural sources exclusion implementation procedure, after all anthropogenic sources of bacteria have been controlled such that they do not cause or contribute to an exceedance of the single sample objectives and natural sources have been identified and quantified, a certain frequency of exceedance of the single sample objectives shall be permitted based on the residual exceedance frequency in the specific water body. The residual exceedance frequency shall define the background level of exceedance due to natural sources. The `natural sources exclusion' approach may be used if an appropriate reference system cannot be identified due to unique characteristics of the target water body. These approaches are Final — 12/12/02 1 • • Attachment k toResolution No. 2002-022 consistent with the State Antidegradation Policy (State Board Resolution No. 68-16) and with federal antidegradation requirements (40 CFR 131.12). The appropriateness of these approaches and the specific exceedance frequencies to be permitted under each will be evaluated within the context of TMDL development for a specific water body, at which time the Regional Board may select one of these approaches, if appropriate. These implementation procedures may only be implemented within the context of a TMDL addressing municipal storm water, including the municipal storm water requirements of the Statewide Permit for Storm Water Discharges from the State of California Department of Transportation (Caltrans), and non - point sources discharges. These implementation provisions do not apply to NPDES discharges other than MS4 discharges.1 Chapter 7. Total Maximum Daily Loads (TMDLs) Summaries, Section 7-4 (Santa Monica Bay Beaches Bacteria TMDL) Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only)* This TMDL was adopted by the Regional Water Quality Control Board on December 12, 2002. This TMDL was approved by: The State Water Resources Control Board on [Insert Date]. The Office of Administrative Law on [Insert Date]. The U.S. Environmental Protection Agency on [Insert Date]. The following table summarizes the key elements of this TMDL. 1 Municipal storm water discharges in the Los Angeles Region are those with permits under the Municipal Separate Storm Sewer System (MS4) NPDES Program. For example, the MS4 permits at the time of this amendment are the Los Angeles County Municipal Storm Water NPDES Permit, Ventura County Municipal Storm Water NPDES Permit, City of Long Beach Municipal Storm Water NPDES Permit, and elements of the statewide storm water permit for the Califomia Department of Transportation (Caltrans). Final — 12/12/02 2 Attachment A to Resolution No. 2002-022 Table 7-4.4. Santa Monica Ba Beaches Bacteria TMDLW et Weather Onl : Elements Element Y Problem Statement Numeric Target (Interpretation of the numeric water quality objective, used to calculate the waste load allocations) ( Key Findings and Regulatory Provisions Y) Elevated bacterial indicator densities are causing impairment of the water contact recreation (REC-1) beneficial use at many Santa Monica Bay (SMB) beaches. Swimming in waters with elevated bacterial indicator densities has long been associated with adverse health effects. Specifically, local and national epidemiological studies compel the conclusion that there is a causal relationship between adverse health effects and recreational water quality, as measured by bacterial indicator densities. The TMDL has a multi -part numeric target based on the bacteriological water quality objectives for marine water to protect the water contact recreation (REC-1) use. These targets are the most appropriate indicators of public health risk in recreational waters. These bacteriological objectives are set forth in Chapter 3 of the Basin Plan, as amended by the Regional Board on October 25, 2001. The objectives are based on four bacterial indicators and include both geometric mean limits and single sample limits. The Basin Plan objectives that serve as numeric targets for this TMDL are: 1. Rolling 30 -day Geometric Mean Limits a. Total coliform density shall not exceed 1,000/100 ml. b. Fecal coliform density shall not exceed 200/100 ml. c. Enterococcus density shall not exceed 35/100 ml. 2. a. b. c. d. Single Sample Limits Total coliform density shall not exceed 10,000/100 ml. Fecal coliform density shall not exceed 400/100 ml. Enterococcus density shall not exceed 104/100 ml. Total coliform density shall not exceed 1,000/100 ml, if the ratio of fecal -to -total coliform exceeds 0.1. These objectives are generally based on an acceptable health risk for marine recreational waters of 19 illnesses per 1,000 exposed individuals as set by the US EPA (US EPA, 1986). The targets apply throughout the year. The final compliance point for the targets is the wave wash2 where there is a freshwater outlet (i.e., publicly -owned storm drain or natural creek) to the beach, or at ankle depth at beaches without a freshwater outlet. Implementation of the above bacteria objectives and the associated TMDL numeric targets is achieved using a `reference system/anti- degradation approach' rather than the alternative `natural sources exclusion approach' or strict application of the single sample objectives. As required by the CWA and Porter -Cologne Water Quality Control Act, Basin Plans include beneficial uses of waters, water quality objectives to protect those uses, an anti -degradation policy, collectively referred to as water quality standards, and other plans and policies necessary to implement water quality standards. This TMDL and its associated waste load allocations, which shall be incorporated into relevant permits, are the vehicles for implementation of the Region's 2 The wave wash is defined as the point at which the storm drain or creek empties and the effluent from the storm drain initially mixes with the receiving ocean water. Final — 12/12/02 3 A`to'uecnlution No. 2002-022 AtLaa%aaaaaa.aaa Element Key Findings and Regulatory Provisions standards. The `reference system/anti-degradation approach' means that on the basis of historical exceedance levels at existing shoreline monitoring locations, including a local reference beach within Santa Monica Bay, a certain number of daily exceedances of the single sample bacteria objectives are permitted. The allowable number of exceedance days is set such that (1) bacteriological water quality at any site is at least as good as at a designated reference site within the watershed and (2) there is no degradation of existing shoreline bacteriological water quality. This approach recognizes that there are natural sources of bacteria that may cause or contribute to exceedances of the single sample objectives and that it is not the intent of the Regional Board to require treatment or diversion of natural coastal creeks or to require treatment of natural sources of bacteria from undeveloped areas. The geometric mean targets may not be exceeded at any time. The rolling 30 -day geometric means will be calculated on each day. If weekly sampling is conducted, the weekly sample result will be assigned to the remaining days of the week in order to calculate the daily rolling 30 -day geometric mean. For the single sample targets, each existing shoreline monitoring site is assigned an allowable number of exceedance days during wet weather, defined as days with 0.1 inch of rain or greater and the three days following the rain event. (A separate amendment incorporating the Santa Monica Bay Beaches Dry -Weather Bacteria TMDL addressed the allowable number of summer and winter dry -weather exceedance days.) Source Analysis With the exception of isolated sewage spills, storm water runoff conveyed by storm drains and creeks is the primary source of elevated bacterial indicator densities to SMB beaches during wet weather. Because the bacterial indicators used as targets in the TMDL are not specific to human sewage, storm water runoff from undeveloped areas may also be a source of elevated bacterial indicator densities. For example, storm water runoff from natural areas may convey fecal matter from wildlife and birds or bacteria from soil. This is supported by the finding that, at the reference beach, the probability of exceedance of the single sample targets during wet weather is 0.22. Loading Capacity Studies show that bacterial degradation and dilution during transport from the watershed to the beach do not significantly affect bacterial indicator densities at SMB beaches. Therefore, the loading capacity is defined in terms of bacterial indicator densities, which is the most appropriate for addressing public health risk, and is equivalent to the numeric targets, listed above. As the numeric targets must be met in the wave wash and throughout the day, no degradation allowance is provided. Waste Load Allocations (for point sources) Waste load allocations are expressed as the number of sample days at a shoreline monitoring site that may exceed the single sample targets identified under "Numeric Target." Waste load allocations are expressed as allowable exceedance days because the bacterial density and frequency of single sample exceedances are the most relevant to public health protection. Final— 12/12/02 4 • • Attachment A to Resolution No. 2002-022 Element Key Findings and Regulatory Provisions For each shoreline monitoring site and corresponding subwatershed, an allowable number of exceedance days is set for wet weather. The allowable number of exceedance days for a shoreline monitoring site for each time period is based on the lesser of two criteria (1) exceedance days in the designated reference system and (2) exceedance days based on historical bacteriological data at the monitoring site. This ensures that shoreline bacteriological water quality is at least as good as that of a largely undeveloped system and that there is no degradation of existing shoreline bacteriological water quality. All responsible jurisdictions and responsible agencies3 within a subwatershed are jointly responsible for complying with the allowable number of exceedance days for each associated shoreline monitoring site identified in Table 7-4.5 below. The three Publicly Owned Treatment Works (POTWs), the City of Los Angeles' Hyperion Wastewater Treatment Plant, Los Angeles County Sanitation Districts' Joint Water Pollution Control Plant, and the Las Virgenes Municipal Water Districts' Tapia Wastewater Reclamation Facility, discharging to Santa Monica Bay are each given individual WLAs of zero (0) days of exceedance during wet weather. 3 For the purposes of this TMDL, "responsible jurisdictions and responsible agencies" are defined as: (1) local agencies that are responsible for discharges from a publicly owned treatment works to the Santa Monica Bay watershed or directly to the Bay, (2) local agencies that are permittees or co -permittees on a municipal storm water permit, (3) local or state agencies that have jurisdiction over a beach adjacent to Santa Monica Bay, and (4) the California Department of Transportation pursuant to its storm water permit. -- Final — 12/12/02 5 «A to Resolution No. 2002-022 Element Key Findings and Regulatory Provisions Load Allocations (for nonpoint Because all storm water runoff to SMB beaches is regulated as a point sources) source, load allocations of zero days of exceedance are set in this TMDL. If a nonpoint source is directly impacting shoreline bacteriological quality and causing an exceedance of the numeric target(s), the permittee(s) under the Municipal Storm Water NPDES Permits are not responsible through these permits. However, the jurisdiction or agency adjacent to the shoreline monitoring location may have further obligations as described under "Compliance Monitoring" below. Implementation The regulatory mechanisms used to implement the TMDL will include primarily the Los Angeles County Municipal Storm Water NPDES Permit (MS4 Permit), the Caltrans Storm Water Permit, the three NPDES permits for the POTWs, the authority contained in sections • 13267 and 13263 of the Water Code, and regulations to be adopted pursuant to section 13291 of the Water Code. Each NPDES permit assigned a waste load allocation shall be reopened or amended at reissuance, in accordance with applicable laws, to incorporate the applicable waste load allocation(s) as a permit requirement. The implementation schedule will be determined on the basis of the implementation plan(s), which must be submitted to the Regional Board by responsible jurisdictions and agencies within two years of the effective date of the TMDL (see Table 7-4.7). After considering the implementation plan(s), the Regional Board shall amend the TMDL at a public hearing and, in doing so, will adopt an individual implementation schedule for each jurisdictional group (described in paragraph 3 below) that is as short as possible taking into account the implementation approach being undertaken. Responsible jurisdictions and agencies must clearly demonstrate in the above-mentioned plan whether they intend to pursue an integrated water resources approach!' If an integrated water resources approach is pursued, responsible jurisdictions and agencies may be allotted up to an 18 -year implementation timeframe, based on a clear demonstration of the need for a longer schedule in the implementation plan, in recognition of the additional planning and time needed to achieve the multiple benefits of this approach. Otherwise, at most a 10 -year implementation timeframe will be allotted, depending upon a clear demonstration of the time needed in the implementation plan. The subwatersheds associated with each beach monitoring location may 4 An integrated water resources approach is one that takes a holistic view of regional water resources management by integrating planning for future wastewater, storm water, recycled water, and potable water needs and systems; focuses on beneficial re -use of storm water, including groundwater infiltration, at multiple points throughout a watershed; and addresses multiple pollutants for which Santa Monica Bay or its watershed are listed on the CWA section 303(d) List as impaired. Because an integrated water resources approach will address multiple pollutants, responsible jurisdictions can recognize cost -savings because capital expenses for the integrated approach will implement several TMDLs that address pollutants in storm water. An integrated water resources approach shall not only provide water quality benefits to the people of the Los Angeles Region, but it is also anticipated that an integrated approach will incorporate and enhance other public goals. These may include, but are not limited to, water supply, recycling and storage; environmental justice; parks, greenways and open space; and active and passive recreational and environmental education opportunities. Final — 12/12/02 6 1 • • Attachment A to Resolution No. 2002-022 Element Key Findings and Regulatory Provisions include multiple responsible jurisdictions and responsible agencies. Therefore, a "primary jurisdiction," defined as the jurisdiction comprising greater than fifty percent of the subwatershed land area, is identified for each subwatershed (see Table 7-4.6).5 Seven primary jurisdictions are identified within the Santa Monica Bay watershed, each with a group of associated subwatersheds and beach monitoring locations. These are identified as "jurisdictional groups" (see Table 7- 4.6). The primary jurisdiction of each "jurisdictional group" shall be responsible for submitting the implementation plan described above, which will determine the implementation timeframe for the subwatershed. A jurisdictional group may change its primary jurisdiction by submitting a joint, written request, submitted by the current primary jurisdiction and the proposed primary jurisdiction, to the Executive Officer requesting a reassignment of primary responsibility. Two jurisdictional groups may also choose to change the assignment of monitoring locations between the two groups by submitting a joint, written request, submitted by the current primary jurisdiction and the proposed primary jurisdiction, to the Executive Officer requesting a reassignment of the monitoring location. If an integrated water resources approach is pursued, the jurisdictional group(s) must achieve a 10% cumulative percentage reduction from the total exceedance-day reduction required for the group of beach monitoring locations within 6 years, a 25% reduction within 10 years, and a 50% reduction within 15 years of the effective date of the TMDL. These interim milestones for the jurisdictional group(s) will be re- evaluated, considering planning, engineering and construction tasks, based on the written implementation plan submitted to the Regional Board two years after the effective date of the TMDL (see Table 7-4.7). If an integrated water resources approach is not pursued, the jurisdictional group(s) must achieve a 25% cumulative percentage reduction from the total exceedance-day reduction required for the group of beach monitoring locations within 6 years, and a 50% reduction within 8 years of the effective date of the TMDL (see Table 7-4.7). For those beach monitoring locations subject to the antidegradation provision, there shall be no increase in exceedance days during the implementation period above that estimated for the beach monitoring location in the critical year as identified in Table 7-4.5. The final implementation targets in terms of allowable wet -weather exceedance days must be achieved at each individual beach location no later than 18 years after the TMDL's effective date if an integrated water resources approach is pursued, or no later than 10 years after the TMDL's effective date if an integrated water resources approach is not pursued. In addition, the geometric mean targets must be achieved for each individual beach location no later than 18 years or 10 years after the effective date, respectively, depending on whether a integrated 5 Primary jurisdictions are not defined for the Ballona Creek subwatershed or the Malibu Creek subwatershed, since separate bacteria TMDLs are being developed for these subwatersheds. Final — 12/12/02 7 Attachment A:to Resolution No..2002-022 Element Key Findings and Regulatory Provisions water resources approach is pursued or not. Final— 12/12/02 8 ment A to Resolution No. 2002-022 Element Key Findings and Regulatory Provisions Margin of Safety The TMDL is set at levels that are exactly equivalent to the applicable water ' quality standards along with the proposed reference system/antidegradation implementation procedure. An implicit margin of safety is included in the supporting water quality model by assuming no dilution between the storm drain and the wave wash, the point of compliance. This is a conservative assumption since studies have shown that there is a high degree of variability in the amount of dilution between the storm drain and wave wash temporally, spatially and among indicators, ranging from 100% to 0%. Seasonal Variations and Critical Conditions . Seasonal variations are addressed by developing separate waste load allocations for three time periods (wet weather, summer dry weather and winter dry weather) based on public health concerns and observed natural background levels of exceedance of bacterial indicators. (The two dry -weather periods are addressed in the Santa Monica Bay Beaches Dry -Weather Bacteria TMDL.) . The critical condition for this bacteria TMDL is wet weather generally, when historic shoreline monitoring data for the reference beach indicate that the single sample bacteria objectives are exceeded on 22% of the wet -weather days sampled. To more specifically identify a critical condition within wet weather in order to set the allowable exceedance days shown in Tables 7-4.5 and 7-4.6, the 90th percentile `storm year'6 in terms of wet days is used as the reference year. Selecting the 90th percentile year avoids a situation where the reference beach is frequently out of compliance. It is expected that because responsible jurisdictions and agencies will be planning for this `worst-case' scenario, there will be fewer exceedance days than the maximum allowed in drier years. Conversely, in the 10% of wetter years, it is expected that there may be more than the allowable number of exceedance days. Compliance Monitoring Responsible jurisdictions and agencies as defined in Footnote 2 shall conduct daily or systematic weekly sampling in the wave wash at all major drains' and creeks or at existing monitoring stations at beaches without storm drains or freshwater outlets to determine compliance.8 At all locations, samples shall be taken at ankle depth and on an incoming wave. At locations where there is a freshwater outlet, during wet weather, samples should be taken as close as possible to the wave wash, and no further away than 10 meters down current of the storm drain or outlet.9 At locations where there is a freshwater outlet, samples shall be taken when the freshwater outlet is flowing into the surf zone. If the number of exceedance days is greater than the allowable number of exceedance days for any jurisdictional group at the interim implementation milestones the responsible jurisdictions and agencies 6 For purposes of this TMDL, a `storm year' means November 1 to October 31. The 90th percentile storm year was 1993 with 75 wet days at the LAX meteorological station. ' Major drains are those that are publicly owned and have measurable flow to the beach during dry weather. 8 The frequency of sampling (i.e., daily versus weekly) will be at the discretion of the implementing agencies. However, the number of sample days that may exceed the objectives will be scaled accordingly. 9 Safety considerations during wet weather may preclude taking a sample in the wave wash. Final — 12/12/02 9 AttachmentA to Resolution No.,2002-022 Element Key Findings and Regulatory Provisions shall be considered out -of -compliance with the TMDL. If the number of exceedance days exceeds the allowable number of exceedance days for a target beach at the final implementation deadline, the responsible jurisdictions and agencies within the contributing subwatershed shall be considered out -of -compliance with the TMDL. Responsible jurisdictions or agencies shall not be deemed out of compliance with the TMDL if the investigation described in the paragraph below demonstrates that bacterial sources originating within the jurisdiction of the responsible agency have not caused or contributed to the exceedance. If a single sample shows the discharge or contributing area to be out of compliance, the Regional Board may require, through permit . requirements or the authority contained in Water Code section 13267, daily sampling in the wave wash or at the existing open shoreline monitoring location (if it is not already) until all single sample events meet bacteria water quality objectives. Furthermore, if a beach location is out -of -compliance as determined in the previous paragraph, the Regional Board shall require responsible agencies to initiate an investigation, which at a minimum shall include daily sampling in the wave wash or at the existing open shoreline monitoring location until all single sample events meet bacteria water quality objectives. If bacteriological water quality objectives are exceeded in any three weeks of a four-week period when weekly sampling is performed, or, for areas where testing is done more than once a week, 75% of testing days produce an exceedence of bacteria water quality objectives, the responsible agencies shall conduct a source investigation of the subwatershed(s) pursuant to protocols established under Water Code 13178. If a beach location without a freshwater outlet is out -of - compliance or if the outlet is diverted or being treated, the adjacent municipality, County agency(s), or State or federal agency(s) shall be responsible for conducting the investigation and shall submit its findings to the Regional Board to facilitate the Regional Board exercising further authority to regulate the source of the exceedance in conformance with the Porter -Cologne Water Quality Control Act. Note: The complete staff report for the TMDL is available for review upon request. Final — 12/12/02 10 • Attachment A to Resolution No. 2002-022 Wet -Weather Exceedance Days by Beach Location Beach Monitoring Location Estimated no. of wet weather exceedance days in critical year (90th percentile)* Final allowable no. of wet weather exceedance days (daily sampling)' DHS 010 - Leo Carrillo Beach, at 35000 PCH 17 17 OHS 009 - Nicholas Beach- 100 feet west of lifeguard tower 14 14 DHS 010a - Broad Beach 15 15 DHS 008 - Trancas each entrance, 50 yards east of Trancas Bridge 19 17 DHS 007 -Westward Beach, east of Zuma Creek 17 17 DHS 006 - Paradise Cove, adjacent to west side of Pier 23 17 DHS 005 - Latigo Canyon Creek entrance 33 17 OHS 005a - Corral State Beach 17 17 DHS 001a - Las Flores Beach 29 17 OHS 001 - Big Rock Beach, at 19900 PCH 30 17 DHS 003 - Malibu Point 18 17 OHS 003a - Surfrider Beach (second point} weekly 45 17 S1 - Surfrider Beach (breach point)- daily 47 17 OHS 002 - Malibu Pier- 50 yards east 45 17 S2 - Topanga State Beach 26 17 DHS 101 - PCH and Sunset Bl.- 400 yards east 25 17 DHS 102 - 16801 Pacific Coast Highway, Bel Air Bay Club (chain fence) 28 17 S3 - Pulga Canyon storm drain- 50 yards east 23 17 DHS 103 - Will Rogers State Beach- Temescal Canyon (25 yrds. so. of drain) 31 17 S4 - Santa Monica Canyon, Will Rogers State Beach 25 17 DHS 104a - Santa Monica Beach at San Vicente BI. 34 17 DHS 104 - Santa Monica at Montana Av. (25 yrds. so. of drain) 31 17 OHS 105 - Santa Monica at Arizona (in front of the drain) 31 17 S5 - Santa Monica Municipal Pier- 50 yards southeast 35 17 S6 - Santa Monica Beach at Pico/Kenter storm drain 42 17 DHS 106 - Santa Monica Beach at Strand St. (in front of the restrooms) 36 17 OHS 106a - Ashland Av. storm drain- 50 yards north 39 17 S7 - Ashland Av. storm drain- 50 yards south 22 17 DHS 107 - Venice City Beach at Brooks Av. (in front of the drain) 40 17 Final — 12/12/02 11 Attachment A to Resolution No. 2002-022 Beach Monitoring Location Estimated no. of wet weather exceedance days in critical year (90"' percentile)' Final allowable no. of wet weather exceedance days (daily sampling)' S8 - Venice City Beach at Windward Av.- 50 yards north 13 13 DHS 108 - Venice Fishing Pier- 50 yards south 17 17 DHS 109 - Venice City Beach at Topsail St. 38 17 S11 - Dockweiler State Beach at Culver BI. 23 17 DHS 110 - Dockweiler State Beach- south of D&W jetty 30 17 S12 - Imperial HWY storm drain- 50 yards north 17 17 DHS 111 - Hyperion Treatment Plant One Mile Outfall 18 17 DHS 112 - Dockweiler State Beach at Grand Av. (in front of the drain) 25 17 S10 - Ballona Creek entrance- 50 yards south 34 17 S13 - Manhattan State Beach at 40th Street 4 4 S14 - Manhattan Beach Pier- 50 yards south 55 • DHS 114 - Hermosa City Beach at 26th St. 12 12 S15 - Hermosa Beach Pier- 50 yards south 8 8 OHS 115 - Herondo Street storm drain- (in front of the drain) 19 17 S16 - Redondo Municipal Pier- 50 yards south 14 14 DHS 116 - Redondo State Beach at Topaz St. - north of jetty 19 Z 17 S17 - Redondo State Beach at Avenue I 6 6 518.- Malaga Cove, Palos Verdes Estates -daily 3 3 LACSDM - Malaga Cove, Palos Verdes Estates -weekly 14 14 LACSDB - Palos Verdes (Bluff) Cove, Palos Verdes Estates 0 0 LACSD1 - Long Point, Rancho Palos Verdes 5 5 LACSD2 - Abalone Cove Shoreline Park 1 1 LACSD3 - Portuguese Bend Cove, Rancho Palos Verdes 2 2 LACSD5 - Royal Palms State Beach 6 6 LACSD6 - Wilder Annex, San Pedro 2 2 LACSD7 - Cabrillo Beach, oceanside 3 3 Notes: * The compliance targets are based on ex sting shoreline monitoring data and assume daily sampling. If systematic weekly sampling is conducted, the compliance targets will be scaled accordingly. These are the compliance targets until additional shoreline monitoring data are collected prior to revision of the TMDL. Once additional shoreline monitoring data are available, the following will be re-evaluated when the TMDL is revised 1) estimated number of wet -weather exceedance days in the critical year at all beach locations, including the reference system(s) and 2) final allowable wet -weather exceedance days for each beach location. Final — 12/12/02 12 Attachment A to Resolution No. 2002-022 -4.6. Interim Compliance Targets by Jurisdictional Grou Jurisdiction Group Primary Jurisdiction Additional Responsible Jurisdictions & Agencies Subwatershed(s) Monitoring Site(s)*** Interim Compliance Targets as Maximum Allowable Exceedance Days during Wet Weather*'** • 10% Reduction Milestone 25% Reduction Milestone 50% Reduction Milestone 1 County of Los Angeles Caltrans Malibu City of Los Angeles (Topanga only) Calabasas (Topanga only) Arroyo Sequit DHS 010 221 212 197 Carbon Canyon none Corral Canyon DHS 005a Encinal Canyon DHS 010a# Escondido Canyon none Las Flores Canyon DHS 001a Latigo Canyon DHS 005 Los Alisos Canyon none Pena Canyon none Piedra Gorda Canyon DHS 001 Ramirez Canyon DHS 006 Solstice Canyon none Topanga Canyon S2 Trancas Canyon DHS 008 Tuna Canyon none Zuma Canyon DHS 007 2 City of Los Angeles Caltrans County of Los Angeles El Segundo (DW only) Manhattan Beach (DW only) Culver City (MDR only) Santa Monica . Castlerock none 342 324 294 Dockweiler S11, DHS 110, S12, DHS 111, DHS 112 Marina del Rey DHS 107, S8#, DHS 108, DHS 109 Pulga Canyon S3, DHS 103 Santa Monica Canyon S4 Santa Ynez Canyon DHS 101, DHS 102 Final — 12/12/02 13 Attachment A to Resolution No. 2002-022 Jurisdiction Group Primary Jurisdiction Additional Responsible Jurisdictions & Agencies Subwatershed(s) Monitoring Site(s)*** Interim Compliance Targets as Maximum Allowable Exceedance Days during Wet Weather'** 10% Reduction Milestone 25% Reduction Milestone 50% Reduction Milestone 3 Santa Monica Caltrans City of Los Angeles County of Los Angeles Santa Monica DHS 104a, DHS 104, DHS 105, S5, S6, DHS 106, DHS 106a, S7 257 237 203 4 Malibu Caltrans County of Los Angeles Nicholas Canyon DHS 009# 14 14 14 5 Manhattan Beach Caltrans El Segundo Hermosa Beach Redondo Beach Hermosa S13#, S14#, DHS 114#, S15# 29 29 29 6 Redondo Beach Caltrans Hermosa Beach Manhattan Beach Torrance County of Los Angeles Redondo DHS 115 S16#, DHS 116, S171/ 58 57 56 Final — 12/12/02 14 Attachment A to Resolution No. 2002-022 Jurisdiction Group Primary Jurisdiction Additional Responsible Jurisdictions & Agencies Subwatershed(s) Monitoring Site(s)*** Interim Compliance Targets as Maximum Allowable Exceedance Days during Wet Weather*'** 10% Reduction Milestone 25% Reduction Milestone 50% Reduction Milestone 7 Rancho Palos Verdes Caltrans City of Los Angeles Palos Verdes Estates Redondo Beach Rolling Hills Rolling Hills Estates Torrance County of Los Angeles • Palos Verdes Peninsula S18#, LACSDM#, LACSDB#, LACSD1#, LACSD2#, LACSD3#, LACSD5#, LACSD6#, LACSD7# 36 36 36 Notes: *Interim milestones will be re -calculated during the revision of the TMDL based on shoreline monitoring data collected from the wave wash and a re-evaluation of the most appropriate reference system and reference year. Furthermore, if an integrated water resources approach is pursued, as demonstrated by the implementation plans to be submitted to the Regional Board by the primary jurisdictions within two years of the effective date of the TMDL, the interim milestones will be re-evaluated on the basis of the implementation plan, considering planning, engineering and construction tasks. **Interim milestones for the Malibu and Ballona shoreline monitoring locations will be identified in subsequent bacteria TMDLs to be developed for these two watersheds. ***Monitoring sites are those shoreline locations currently monitored by the City of Los Angeles, County Sanitation Districts of Los Angeles County, and the Los Angeles County Department of Health Services at the time of adoption of this TMDL by the Regional Board. This list does not preclude the establishment of additional monitoring stations. For those subwatersheds without an existing shoreline monitoring site, responsible jurisdictions and agencies must establish a shoreline monitoring site if there is measurable flow from a creek or publicly owned storm drain to the beach during dry weather. For those beach monitoring locations subject to the antidegradation provision, there shall be no increase in exceedance days during the implementation period above that estimated for the beach monitoring location in the critical year as identified in Table 7-4.5. Final — 12/12/02 15 Attachment A to Resolution No. 2002-022 Table 7-4.7. Santa Monica Bay Beaches Bacteria TMDL (Wet Weather Only): Significant Dates Date Action 120 days after the effective date of the TMDL Pursuant to a request from the Regional Board, responsible jurisdictions and responsible agencies must submit coordinated shoreline monitoring plan(s) to be approved by the Executive Officer, including a list of new sites* and/or sites relocated to the wave wash at which time responsible jurisdictions and responsible agencies shall select between daily or systematic weekly shoreline sampling. 20 months after the effective date of the TMDL Responsible jurisdictions and agencies shall provide a draft written report to the Regional Board outlining how each intends to cooperatively (through Jurisdictional Groups) achieve compliance with the TMDL. The report shall include implementation methods, an implementation schedule, and proposed milestones. Two years after effective date of TMDL Responsible jurisdictions and agencies shall provide a written report to the Regional Board outlining how each intends to cooperatively (through Jurisdictional Groups) achieve compliance with the TMDL. The report shall include implementation methods, an implementation schedule, and proposed milestones. Under no circumstances shall final compliance dates exceed 10 years for non-integrated approaches or 18 years for integrated water resources approaches. Regional Board staff shall bring to the Regional Board the aforementioned plans as soon as possible for consideration. 4 years after effective date of • TMDL The Regional Board shall reconsider the TMDL to: (1) refine allowable wet weather exceedance days based on additional data on bacterial indicator densities in the wave wash and an evaluation of site-specific variability in exceedance levels, (2) re-evaluate the reference system selected to set allowable exceedance levels, including a reconsideration of whether the allowable number of exceedance days should be adjusted annually dependent on the rainfall conditions and an evaluation of natural variability in exceedance levels in the reference system(s), (3) re-evaluate the reference year used in the calculation of allowable exceedance days, and (4) re-evaluate whether there . is a need for further clarification or revision of the geometric mean implementation provision. Final — 12/12/02 16 Attachment A to Resolution No. 2002-022 Date Action Significant Dates for Responsible Jurisdictions and Agencies Not Pursuing an Integrated Water Resources Approach 6 years after effective date of the TMDL Each defined jurisdictional group must achieve a 25% cumulative percentage reduction from the total exceedance-day reductions required for that jurisdictional group as identified in Table 7-4.6. 8 years after effective date of the TMDL • Each defined jurisdictional group must achieve a 50% cumulative percentage reduction from the total exceedance-day reductions required for that jurisdictional group as identified in Table 7-4.6. 10 years after effective date of the TMDL Final implementation targets in terms of allowable wet- weather exceedance days must be achieved at each individual beach as identified in Table 7-4.5. In addition, the geometric mean targets must be achieved for each individual beach location. Significant Dates for Responsible Jurisdictions and Agencies Pursuing an Integrated Water Resources Approach to Implementation 6 years after effective date of the TMDL • Each defined jurisdictional group must achieve a 10% cumulative percentage reduction from the total exceedance-day reductions required for that jurisdictional group as identified in Table 7-4.6. 10 years after effective date of the TMDL Each defined jurisdictional group must achieve a 25% cumulative percentage reduction from the total exceedance-day reductions required for that jurisdictional group as identified in Table 7-4.6. 15 years after effective date of the TMDL Each defined jurisdictional group must achieve a 50% cumulative percentage reduction from the total exceedance-day reductions required for that jurisdictional group as identified in Table 7-4.6. 18 years after effective date of the TMDL Final implementation targets in terms of allowable wet- weather exceedance days must be achieved at each individual beach as identified in Table 7-4.5. In addition, the geometric mean targets must be achieved for each individual beach location. Notes: *For those subwatersheds without an existing shoreline monitoring site, responsible jurisdictions and agencies must establish a shoreline monitoring site if there is measurable flow from a creek or publicly owned storm drain to the beach during dry weather. Final— 12/12/02 17 • • Attachment B to Resolution No. 2002-022 Amendment to the Water Quality Control Plan — Los Angeles Region to Revise the Santa Monica Bay Beaches Dry -Weather Bacteria TMDL Adopted by the California Regional Water Quality Control Board, Los Angeles Region on December 12, 2002. Amendments: Chapter 7. Total Maximum Daily Loads (TMDLs) Summaries Santa Monica Bay Beaches Bacteria TMDL (Dry Weather Only)* Table 7-4.3. Santa Monica Bay Beaches Bacteria TMDL (Dry Weather Only): Significant Dates Date Action 120 days after the effective date of the TMDL Responsible jurisdictions and responsible agencies must submit coordinated shoreline monitoring plan(s), including a list of new sites or sites relocated to the wave wash at which time responsible jurisdictions and responsible agencies will select between daily and weekly shoreline sampling. 120 days after the effective of the TMDL date ICessation Responsible jurisdictions and responsible agencies must identify and provide documentation on 342 potential discharges to Santa Monica Bay beaches listed in Appendix C of the TMDL Staff Report dated January 11, 2002. Documentation must include a Report of Waste Discharge (ROWD) where necessary. Responsible jurisdictions and responsible agencies must identify and provide documentation on potential discharges to the Area of Special Biological Significance (ASBS) in northern Santa Monica Bay from Latigo Point to the County line. of the discharges into the ASBS shall be required in conformance with the California Ocean Plan. 2-4 years after effective TMDL date of y Ibacterial Re -open TMDL to re-evaluate allowable winter dry weather exceedance days based on additional data on indicator densities in the wave wash, a re- evaluation of the reference system selected to set allowable exceedance levels, and a re-evaluation of the reference year used in the calculation of allowable exceedance days. 3 years after effective date of the TMDL Achieve compliance with allowable exceedance days as set forth in Table 7-4.2a and rolling 30 -day geometric mean targets during summer dry weather (April 1 to October 31). 6 years after effective date of the TMDL Achieve compliance with allowable exceedance days as set forth in Table 7-4.2a and rolling 30 -day geometric mean targets during winter dry weather (November 1 to March 31). Attachment B to Resolution No. 2002-022 Amendment to the Water Quality Control Plan — Los Angeles Region to Revise the Santa Monica Bay Beaches Dry -Weather Bacteria TMDL Adopted by the California Regional Water Quality Control Board, Los Angeles Region on December 12, 2002. Amendments: Chapter 7. Total Maximum Daily Loads (TMDLs) Summaries Santa Monica Bay Beaches Bacteria TMDL (Dry Weather Only)* -4.3. Santa Monica Bay Beaches Bacteria TMDL(Dry Weather Only): Significant Dates Date Action 120 days after the effective date of the TMDL • Responsible jurisdictions and responsible agencies must submit coordinated shoreline monitoring plan(s), including a list of new sites or sites relocated to the wave wash at which time responsible jurisdictions and responsible agencies will select between daily and weekly, shoreline sampling. 120 days after the effective date of the TMDL Responsible jurisdictions and responsible agencies must identify and provide documentation on 342 potential discharges to Santa Monica Bay beaches listed in Appendix C of the TMDL Staff Report dated January 11, 2002. Documentation must include a Report of Waste Discharge (ROWD) where necessary. Responsible jurisdictions and responsible agencies must identify and provide documentation on potential discharges to the Area of Special Biological Significance (ASBS) in northern Santa Monica Bay from Latigo Point to the County line. Cessation of the discharges into the ASBS shall be required in conformance with the California Ocean Plan. 2-4_years after effective date of TMDL Re -open TMDL to re-evaluate allowable winter dry weather exceedance days based on additional data on bacterial indicator densities in the wave wash, a re- evaluation of the reference system selected to set allowable exceedance levels, and a re-evaluation of the reference year used in the calculation of allowable exceedance days. 3 years after effective date of the TMDL Achieve compliance with allowable exceedance days as set forth in Table 7-4.2a and rolling 30 -day geometric mean targets during summer dry weather (April 1 to October 31). 6 years after effective date of the TMDL Achieve compliance with allowable exceedance days as set forth in Table 7-4.2a and rolling 30 -day geometric mean targets during winter dry weather (November 1 to March 31). • • iev-e'/ 2/a Vay ACTION SHEET AGENDA PLANNING COMMISSION MEETING CITY OF HERMOSA BEACH CITY HALL COUNCIL CHAMBERS 1315 VALLEY DRIVE HERMOSA BEACH, CA 90254 July 20, 2004 7:00 P.M. Sam Perrotti Ron Pizer Peter Hoffman Kent Allen Richard Koenig 1. Pledge of Allegiance Chairman 2. a. Introduction and welcome of new Commissioner Richard Koenig b. Roll Call COMMISSIONER HOFFMAN ABSENT. 3. Oral / Written Communications Anyone wishing to address the Commission regarding a matter not related to a public hearing on the agenda may do so at this time. Section I Consent Calendar Any Planning Commissioner or public wishing to pull an item from below may request to do so at this time. 4. Approval of June 15, 2004 minutes ACTION: APPROVED WITH VOTE COUNT CHANGED ON ITEM NO. 9 (4-0). 5. Resolution(s) for adoption a. Resolution 04-18 approving a Conditional Use Permit, Precise Development Plan and Vesting Tentative Parcel Map No. 061109 for a two -unit condominium at 970 6th Street. ACTION: CONTINUED TO AUGUST 17, 2004 MEETING. • • Section II Public Hearing(s) 6. CUP 04-2 -- Conditional Use Permit amendment to an R-1 Planned Development for four single family homes to modify the retaining wall and landscaping areas at the rear of the homes at 1911, 1921, 1931 and 1941 Power Street (continued from June 15, 2004 meeting). Staff Recommended Action: To continue to August 17, 2004 meeting. ACTION: CONTINUED TO AUGUST 17, 2004 MEETING (4-0). 7. CON 04-13/PDP 04-14 -- Conditional Use Permit, Precise Development Plan and Vesting Tentative Parcel Map No. 061176 for a two -unit condominium at 165 Manhattan Avenue. Staff Recommended Action: To approve said request. ACTION: APPROVED (4-0). 8. CON 04-14/PDP 04-15 -- Conditional Use Permit, Precise Development Plan and Vesting Tentative Parcel Map No. 061349 for a two -unit condominium at 1522 Palm Drive and 1523 Manhattan Avenue. Staff Recommended Action: To approve said request. ACTION: APPROVED (4-0). 9. CUP 04-3 -- Conditional Use Permit amendment to allow outdoor dining, on -sale general alcohol and extended hours of operation in conjunction with an existing restaurant at 2205 Pacific Coast Highway, Mama's Feast At Large. Staff Recommended Action: 1) To approve the floor plan alterations, extended hours and outdoor dining. 2) To direct staff as deemed appropriate in regards to the request for on -sale general alcohol. ACTION: CONTINUED TO AUGUST 17, 2004 MEETING (4-0). Section III Hearing(s) 10. NR 04-5 -- Remodel and addition to an existing nonconforming single family dwelling resulting in a greater than 50% increase in valuation at 760 Loma Drive. Staff Recommended Action: To direct staff as deemed appropriate. ACTION: APPROVED SUBJECT TO REVIEW OF DESIGN CHANGES AS REQUIRED BY PUBLIC WORKS DEPT. (4-0). 11. NR 04-6 -- Remodel and addition to an existing nonconforming single family dwelling resulting in a greater than 50% increase in valuation at 949 13th Street. Staff Recommended Action: To approve said request. ACTION: APPROVED (4-0). 12. NR 04-2 -- Roof deck addition to an existing duplex with a nonconforming side yard resulting in the extension of an existing nonconforming side yard at 1085-1087 Monterey Boulevard (continued from June 15, 2004 meeting). Staff Recommended Action: To continue to August 17, 2004 meeting. ACTION: CONTINUED TO AUGUST 17, 2004 MEETING (4-0). 2 • • 13. NR 04-7 -- Addition and remodel to an existing single family residence with an extension of an existing nonconforming side yard at 926 21st Street. Staff Recommended Action: To approve said request. ACTION: APPROVED (4-0). 14. A-14 -- Appeal of director's decision regarding the grade used for height measurement at 430 Longfellow Avenue. Staff Recommended Action: To direct staff as deemed appropriate. ACTION: DETERMINATION WAS MADE THAT RETAINING WALL REPRESENTS UNALTERED GRADE (4-0). 15. A-14 -- Appeal of director's decision regarding the grade used for height measurement at 434 Longfellow Avenue. Staff Recommended Action: To direct staff as deemed appropriate. ACTION: DETERMINATION WAS MADE THAT RETAINING WALL REPRESENTS UNALTERED GRADE (4-0). Section IV 16. Staff Items a. Summary of General Plan update status. b. Tentative future Planning Commission agenda. c. Community Development Department Activity Report of May, 2004. d. City Council minutes of May 18, 25, June 7, 8 and 22, 2004 ACTION: RECEIVED AND FILED ABOVE 16A -D (4-0). 17. Commissioner Items 18. Adjoumm 3 • ii -c/ ?A y July 21, 2004 Honorable Mayor and Members of Regular Meeting of the Hermosa Beach City Council July 27, 2004 NOTICE OF CLOSED CLAIM The City has resolved and closed the following claim: 1. Claimant Zawitkoski, Larry Date of Loss 11-10-03 Date Filed .• 01-22-04 Damage Property damage Disposition Claim paid $2,840.37 A copy of this claim is on file with the City Clerk's office. Respectfully Submitted, Concur: Mic el A. Earl, Director Stephen R. B rrell Personnel & Risk anagement City Manager S 2/0 PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MINUTES OF THE JULY 6,'2004 MEETING The meeting was called to order by Commissioner Hollander at 7:01p.m. Roll Call: Present: Commissioners Francis, Hollander, Sigler Absent: Commissioners Fishman, Bell Also Present: Lisa Lynn Pledge of Allegiance: Commissioner Sigler. Commissioner Hollander took a moment to thank Commissioner Fishman for a great year of service as the past Chairman. Approval of June 1, 2004 Minutes Motion: "To approve as submitted." Francis/Sigler — All Ayes Correspondence A. National Recreation and Parks Association (NRPA) designation of July as Recreation and Parks Month. Lisa Lynn informed the Commission that July is National Parks & Recreation Month as declared by the National Recreation and Parks Association. The gifts presented to the Commissioners were made by the children at the camps: the visors were made by Summer Blast Camp, ages 6-11 and the candles were made by Teen Extreme Camp, ages 11-14. Lisa also noted that every week the camps have had maximum registration. The Commissioners tried on their visors, admired their candles and sent out a hearty Thank You to the children for their gifts. It was also stated that the recently held registration in the park (Summer Celebration ) produced record registrations for the programs. It was suggested that this continue each year. Public Comment N/A 1 2o Matters for Commission Consideration A. Surfers Walk of Fame Lisa Lynn explained that two recommendations are placed before the Commission for approval: 1. To approve candidates selected for Hermosa Beach Surfers Walk of Fame to be inducted Calendar Year 2004; and 2. To approve venue selection for Surfers Walk of Fame Induction Ceremony to be held August 1, 2004. Commissioner Sigler stated the nomination process was handled very democratically. There were 24 nomination received and a small advisory board utilized a numeric ranking system from 1 to 7, resulting in the selection of the top 4: Linda Bensen, Sonny Vardeman, Bob & Bill Meistrell and John Joseph. The induction into the Surfers Walk of Fame will be held annually and those remaining 20 nominees will be automatically considered along with new nominees submitted. The Induction Ceremony will be held at 5:30p.m. on August 1, 2004 with the concert beginning at 6:00p.m. Motion by Commissioner Francis to approve both recommendations: candidates selected for Walk of Fame and the venue selection for the Walk of Fame Induction Ceremony on August 1st. Commissioner Sigler seconded the motion. Ayes: Commissioners Francis, Hollander, Sigler Nays: None Abstain: None Absent: Fishman, Bell Staff Report(s) Lisa Lynn stated that registration continues to increase steadily along with the usage of the parks and facilities. Revenues up, at 118% of year end projected revenue. Commissioner's Reports: Hermosa Arts Foundation - Commissioner Hollander: There was a great turn -out at Hermosa Arts Foundation's Art Walk on June 24`h. The Art Walk will continue throughout the summer - July 29`h and August 26`h. The Art Walk consists of local artists along upper Pier Avenue interspersed with jazz musicians. Commissioner Hollander extended an invitation for all to come out and enjoy this event. It was also noted that community participation is strongly desired. Should anyone want to participate, there is an upcoming meeting on Monday, July 26th at 6:00p.m. in Room 4 at the Community Center. Surfin' Hermosa — Commissioner Hollander: The event held at Gallery C on June 25th had a great turn -out. There were 200 expected, but 500 turned -out. The 20 surf boards were magnificent. Maps are being prepared for distribution to show where the surf boards will be on display. The auction will take place at the end of the summer. The 2 P&R 7/6/04 Minutes • • minimum bid is $500 and bids can be placed at any time. It was noted that bid sheets were available at the event and already had bids placed on them. To date, the locations where the surf boards will be placed is still being determined. Once the maps are ready, they will be distributed by the Parks & Recreation Department. The boards are not currently available for viewing. Any business that would like to sponsor locating a surf board at their business should call the Parks & Recreation Department, Jane Stewart or the Hermosa Education Foundation for more details Friends of the Park Foundation — Hollander: Working very diligently to improve the parks and the Parks & Recreation programs. This is a small organization, but has raised a lot of money to improve the parks on the East -side of Hermosa. Again, participation is strongly desired — the next meeting will be held Wednesday, July 14th at 6:OOp.m. in Room 4 at the Community Center. Museum Subcommittee Report — Commission Fishman: This item was not discussed due to Commissioner Fishman's absence. Sunset Concert Subcommittee — Commissioner Francis: The Subcommittee received some bad news — one of the sponsors pulled out and they have lost $10,000. The good news is that the concerts will still take place: August 1st, August 8th and August 15th. Anyone in interesting in sponsoring, please feel free to contact Lisa Lynn or any member of the Commission for details. The remaining sponsor is FW Magazine, an entertainment magazine. Surfers Walk of Fame - Sigler: Commissioner Sigler took this time to thank Lisa and the Community Resources Department for time and energy put into producing such great nomination packets and for a well thought-out selection process. Items Requested by Commissioners Commissioner Sigler: Confirmed the dates of the upcoming AVP event: set-up begins July 19th and the first event day is July 22nd. The courts will be unavailable beginning Monday, July 19th and available again for use on Thursday July 29th Commissioner Francis: Reminder for the upcoming International Surf Festival on July 30th through August 1St. This is a great event to attend, enjoying a day at the beach and competition. Lisa Lynn stated that for any of the events discussed, the public can access city's website at www.hermosabch.org and access the calendar for additional details. Other Matters 3 P&R 7/6/04 Minutes N/A Public Comment N/A Motion: "To Adjourn" Francis/Sigler — All Ayes 4 P&R 7/6/04 Minutes • July 22, 2004 Honorable Mayor and Members of the Hermosa Beach City Council • Regular meeting of July 27, 2004 Bayview Underground Assessment District; Appropriation of funds to cover the agreements for the service provided by the Bond Counsel; Assessment Engineer and Financial Advisor. Recommendation: That the City Council advance $45,000 from the Capital Improvement Fund and appropriate that amount to the Bayview Underground District for the agreements with Bond Counsel, Assessment Engineer and Financial Advisor for the proposed Bayview District. Background: The City Council, at the June 8, 2004 meeting, approved agreements with the consultants that will be working on the proposed district. The Bond Counsel is Stradling, Yocca, Carlson & Rauth, the fee for the work is $20,000; the Assessment Engineer is David Taussig & Associates, Inc., the fee is $20,000; and, the Financial Advisor is Northcross, Hill & Ach with a fee of $5,000. The district pays for all of these costs if it is successful and funds will be reimbursed to the Capital Improvement Fund. The agreement with the Financial Advisor is also attached to this report as it was on June 8, 2004 report and a specific action also needs to be taken to approve this agreement as it was not at the prior meeting. Res tfully submitted, Stephen R. Burr 11 City Manager 2p • • 1NORTHCROSS IHILLIACHI May 28, 2004 Viki Copeland Director of Finance City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 RE: Assessment District Formation and Financing (Bayview Drive) Undergrounding Utility Project Dear Viki: Northcross, -iiji & ;aril Tei .i ; _..?03.: 406 � , - =iB:7=7+`7T71gnPUNIC I''d415.503 34C1 034B O'f eilly Avenue www.nnainc.net he Presidio San Francisco, OA 9/-1 1">_, We understand that the City of Hermosa Beach (the "City") is developing an assessment district for the purpose of providing a financing mechanism for the undergrounding of utilities. We also understand that this process was initiated by existing property owners within a specific area of the City. Northcross, Hill & Ach ("NHA") can provide the financial advisory services necessary to fund the assessment district project cost from either the issuance of assessment bonds to the public market or a private entity. Given the estimated size of the financing, both options are available to the City. NHA has extensive experience in assessment and special tax (land secured) financings. We have provided professional services to the City on past assessment projects and are also serving as financial advisor to the cities of Palmdale and Yuba City currently on assessment projects. Our services as financial advisor will include all debt service calculations, credit analysis preparation and market analysis necessary for the City to make a determination for selling the assessment bonds. NHA will also coordinate and complete any negotiations with the purchaser of the assessment bonds. NHA will charge a financial advisor fee of $5,000, which will include all out-of-pocket expenses. The fee will be contingent on the successful closure and receipt of the funds. We appreciate the opportunity to work with the City again. Please let us know if there are any questions or additional information we can get you at this point in time. Sincerely, G. Craig Hill Principal Cc: Mark Northcross Honorable Mayor and Members of the oy 6 a y-ia va- July 19, 2004 Regular Meeting of Hermosa Beach City Council July 27, 2004 SUBJECT: ADOPTION OF UPDATED STRUCTURAL STANDARDS TO THE 2001 CALIFORNIA BUILDING STANDARDS CODE 2/Q7/0y Recommendation: That the City Council waive further reading and adopt the attached resolution and ordinance amending the City's Building Code to incorporate updated structural standards in the 2001 California Building Standards Code. Background: The California Building Standards Commission recently adopted emergency regulations to update the structural building standards in the California Building Standards Code (California Code of Regulations, Title 24). These new standards are nationally recognized structural regulations which were determined to be lacking in the current edition of the California Building Code (CBC). The update, effective July 18, 2003, was made to further the protection of the public in and around buildings and was recently amended.' The proposed changes will bring the City's code in compliance with the State adopted code. The City Council adopted the most recent edition of California Building Standards Code in October 2002. That code incorporates the 1997 Edition of the Uniform Building Code (UBC) and does not contain the most recent structural building standards adopted by the State. Analysis: There have been numerous new developments in seismic design that have not been incorporated in the 2001 California Building Code and the 1997 UBC. The California Building Standard Commission has adopted these new regulations to upgrade structural requirements and local jurisdictions adopt them as part of local code adoption process. The changes are summarized as follows: • New definitions of light frame construction (avoids confusion in the design and review process) • Increased wind and earthquake load factors as permitted in Chapter 23 of the UBC (for greater resistance to seismic and wind forces). • New Seismic Zone 4 design factors. • New horizontal distributions for design loads (increasing design factors). • New vertical combinations for seismic design (eliminating inadvertent design reductions from higher to lower levels due to different lateral force resisting systems along the height of the building. (This amendment is needed due to variations in local geological conditions). • New code language clarifying the types of elements such as beams and columns supporting discontinuous systems and ensuring that the connection of such discontinuous elements are designed for the load above. (e.g. steel columns that are part of lateral force resisting systems which are designed for a special load combination must have connections also of sufficient capacity to transmit the load to the supporting element). • New AISC design requirements for Seismic Zones 3 and 4. • Limitations on the use of ordinary moment frame designs relating to height and dead loads. 5a • Structural tests, insletions and observations requirements tow construction team members to better coordinate and communicate design intent. • Nondestructive testing for steel member resisting frames and steel braced frame systems New design parameters for concrete and steel correcting deficiencies and updating the 1997 UBC. • New design parameters for wood including allowable stress design and hold down connectors (for misaligned bolt holes and insufficient contact area between bolts, washers and wood members). Since adoption of these emergency measures by the State last year, the City has been utilizing the requirements in the plan review and plan approval process. Adoption of the proposed ordinance will codify these regulations as part of the City's Building Code. lumenfel s Di . or Community D = elopment Department glat IL Stephe . B' ell Tager ager Attachments: 1. Resolution 2. Proposed Ordinance 3. Building Standards Commission Summary Report & Statement of Reasons for Adoption 4. Non -Substantive Amendments Notes: 1. An amendment of non -substantive changes was approved by the State this year clarifying amendment text, cleaning up typographical errors, adding footnotes and reformatting portions of the document. These changes have been incorporated in the attached ordinance and are also shown in Attachment No 4. CBSCAdoption3 Page 2 J • • Attachment No. 1 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, MAKING FINDINGS IN SUPPORT OF ADOPTION OF AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING BY REFERENCE PART 2 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS WITH UPDATED STRUCTURAL AMENDMENTS, COMPRISING THE 2001 CALIFORNIA BUILDING CODE; AND AMENDING TITLE 15 OF THE HERMOSA BEACH MUNICIPAL CODE. A. Recitals (i) California Health and Safety Code Section 17922 requires all cities to adopt, as the City Building Standards Code, the State Building Standards Code adopted pursuant to the provisions of Chapter 4 of Part 2.5 of Division 13 of the California Health and Safety Codes. (ii) The State Building Standards Commission has recently adopted new updated structural standards to provide a uniform level of public safety throughout the State; (iii) Recent major earthquakes have revealed shortcomings in current building standards; (iv) Current published standards do not include new advancements in seismic design; (v) The proposed standards will reduce loss of life and economic hardship after a major earthquake; (vi) The standard four year code adoption cycle may be extended due to the proposed adoption of new model codes (NFPA 5000 or 2003 IBC) and the delay will cause the City's building code to be out of step in standards and engineering principles with the most current model building codes; (vii) This Council desires to amend the City's building code to incorporate the structural of standards of the California Building Code. B. Resolution NOW, THEREFORE, BE IT FOUND, DETERMINED AND RESOLVED AS FOLLOWS: 1. In all respects as set forth in the Recitals, Part A, of this Resolution. 2. This Council does hereby expressly find and determine that the proposed amendments set forth in the attached Ordinance amending the "California Building Standards Code" and related publications, 2001 Editions are necessary for protection of the public in and around buildings. PASSED, APPROVED and ADOPTED this 27th day of July, 2004. PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: City Clerk City Attorney Page 3 Attachment No. 2 ORDINANCE NO. AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, ADOPTING BY REFERENCE PART 2 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS WITH UPDATED STRUCTURAL AMENDMENTS, COMPRISING THE 2001 CALIFORNIA BUILDING CODE; PART 3 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE 2001 CALIFORNIA ELECTRICAL CODE; PART 4 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE 2001 CALIFORNIA MECHANICAL CODE; PART 5 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE 2001 CALIFORNIA PLUMBING CODE; PART 9 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE 2001 CALIFORNIA FIRE CODE; PART 10 OF TITLE 24 OF THE CALIFORNIA CODE OF REGULATIONS, COMPRISING THE 2001 CALIFORNIA CODE FOR BUILDING CONSERVATION; THE 1997 EDITION OF THE UNIFORM HOUSING CODE; AND THE 1997 EDITION OF THE UNIFORM CODE FOR THE ABATEMENT OF DANGEROUS BUILDINGS; AMENDING SAID CODES; AND AMENDING TITLE 15 OF THE HERMOSA BEACH MUNICIPAL CODE. WHEREAS, the State of California has adopted the California Building Standard Codes that must in turn be adopted or utilized by each city or county; WHEREAS, the State Building Standards Commission has recently adopted new updated structural standards to provide a uniform level of public safety throughout the State; WHEREAS, recent major earthquakes have revealed shortcomings in current building standards; WHEREAS, current published standards do not include new advancements in seismic design; WHEREAS, the proposed standards will reduce loss of life and economic hardship after a major earthquake; WHEREAS, the standard four year code adoption cycle may be extended due to the proposed adoption of new model codes (NFPA 5000 or 2003 IBC) and the delay will cause the current California Building Code to be out of step in its reference standards and engineering principles with the most current model building codes; WHEREAS, this project will not have a significant effect on the environment, and is therefore exempt from the provisions of the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) of the CEQA Guidelines. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS: Page 4 • • SECTION 1. Section 15.04.010 of Title 15, the California Building Code, 2001 Edition (Part 2 of Title 24 of the California Code of Regulations), as amended on July 18, 2003 and March 18, 2004, incorporating structural updates and amending the Uniform Building Code, 1997 Edition, published by the International Conference of Building Officials, including appendices, excepting Chapters 3, Division III and IV, 4 ,Division II, 11, 13, 21, 23, and 31 of said appendices, is hereby adopted by reference and made a part of this chapter as though set forth in this chapter in full. Said code shall comprise the Building Code of the City of Hermosa Beach. A copy of the Building Code shall be maintained in the office of the City Clerk, and shall be made available for public inspection while the Code is in force. Whenever the word 'jurisdiction" appears in said code, it shall mean and refer to the City of Hermosa Beach. Whenever the term "building official" appears in said code, it shall mean and refer to the Director of Community Development of the City of Hermosa Beach. SECTION 2. All inconsistencies between the Building Code, Electrical Code, Mechanical Code, Plumbing Code, and Fire Code, as adopted by this Ordinance, and the 2001 edition of the California Building Code, Electrical Code, Mechanical Code, Plumbing Code, and Fire Code, as set forth in Parts 2, 3, 4, 5 and 9, respectively, of Title 24 of the California Code of Regulations, are changes, modifications, amendments, additions or deletions thereto authorized by California Health and Safety Sections 17958.5 and 17958.7. SECTION 3. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Hermosa Beach Municipal Code, these provisions shall be construed as continuations of those provisions and not as new enactments. SECTION 4. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part hereof or exhibit hereto is for any reason held to be invalid, such invalidity shall not affect the validity of the remaining portions of this Ordinance or any part thereof or exhibit thereto. The City Council of the City of Hermosa Beach hereby declares that it would have passed each section, subsection,subdivision, paragraph, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, subdivisions, paragraphs, sentences, clauses or phrases be declared invalid. SECTION 5. The City Council does hereby designate the City Attorney to prepare a summary of this ordinance to be published pursuant to Government Code Section 36933(c)(1) in lieu of the full text of said ordinance. That prior to the expiration of fifteen (15) days after the date of its adoption, the City Clerk shall cause the summary to be published in the Easy Reader, a weekly newspaper of general circulation, published and circulated in the City of Hermosa Beach. SECTION 6. The City Clerk shall certify to the passage and adoption of this ordinance; shall enter the same in the book of original ordinances of said city; shall make minutes of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted. SECTION 7. State law requires that localities adopt the California Building Standards Code and modifications thereto that comport with state law and contain those modifications necessitated by unique topographic, geologic and climatic conditions. In the absence of immediate effectiveness, the provisions of the Building, Electrical, Mechanical, Plumbing and Fire Codes unique to the City's special circumstances will not be in place and this will have a detrimental effect on the public, health, safety and welfare. The modification to the Codes contain vital provisions regarding administrative procedures, roofing materials, sprinkling requirements, and other similar matters necessitated by the City's exposure to Santa Ana winds and its limited rainfall in summer and fall months. For these reasons, the public health, safety and welfare require that this ordinance take effect immediately. SECTION 8. This ordinance shall be effective upon adoption. PASSED, APPROVED and ADOPTED this 27TH day of July, 2004, by the following vote: Page 5 AYES: ' NOES: ABSTAIN: ABSENT: PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: CITY CLERK CITY ATTORNEY CBSCadoption3 Page 6 • • Attachment No. 3 BUILDING STANDARDS COMMISSION 2525 Natomas Park Drive, Suite 130 Sacramento, California 95833 (916) 263-0916 FAX (916) 263-0959 BUILDING STANDARDS BULLETIN 01-03 DATE: AUGUST 1, 2003 TO: INTERESTED PARTIES SUBJECT: UPDATE TO STRUCTURAL STANDARDS IN 2001 CALIFORNIA BUILDING STANDARDS CODE The California Building Standards Commission recently adopted emergency regulations to update structural building standards in the California Building Standards Code (California Code of Regulations, Title 24). The update was made to further the protection of the public in, and around buildings, and became effective on July 18, 2003. Under the Commission's leadership, a technical advisory group developed a coordinated consensus document of updates to the structural building standards contained in the California Building Code (Title 24, Part 2). Working in partnership with local jurisdictions in California, the group produced this document using proposals submitted by the Los Angeles Regional Uniform Code Program and the tri -chapter organization of three International Code Council chapters (Peninsula, East Bay, and Monterey). The document makes some of the more critically needed updates to the structural standards. These updates are currently accepted, nationally recognized standards and engineering principles, which were determined to be lacking in the California Building Code. The Commission adopted these emergency building standards to ensure public safety in the buildings it has the authority to regulate; specifically, state buildings, buildings constructed by the Trustees of the California State University, and those constructed by the Regents of the University of California. These standards will also serve as a template for local municipalities to adopt as local modifications to the California Building Standards Code, thus providing for a uniform level of public safety throughout California. The emergency standards themselves follow. Page 7 4ITIAL STATEMENT OF REASONS • OF PROPOSED BUILDING STANDARDS OF THE CALIFORNIA BUILDING STANDARDS COMMISSION REGARDING THE CALIFORNIA BUILDING CODE, CALIFORNIA CODE OF REGULATIONS, TITLE 24, PART 2 The Administrative Procedure Act (APA) requires that an Initial Statement of Reasons be available to the public upon request when a rulemaking action is being undertaken. The following information required by the APA pertains to this particular rulemaking action. STATEMENT OF SPECIFIC PURPOSE AND RATIONALE: (Government Code Section 11346.2 requires a statement of the specific purpose of EACH adoption, amendment, or repeal and the rational for the determination by the agency that EACH adoption, amendment, or repeal is reasonably necessary to carry out the purpose for which it is proposed.) There have been numerous new developments in the area of seismic design that have not been incorporated in the 2001 California Building Code, Part 2, Vol. 2 of Title 24 based on the 1997Uniform Building Code (UBC). The California Building Standard Commission (CBSC) is proposing to upgrade the structural requirements of the 2001 California Building Code, Part 2, Vol. 2 of Title • 24. to make available current seismic standards for adoption at the local level. New structural amendments as recommended by the California Seismology commission and the Structural Engineers Association have been incorporated by some jurisdictions by way of local ordinances. These amendments were reviewed by a Seismic Ad Hoc Advisory Committee established by the CBSC for consideration for statewide application. It is expected that there will be little or no negative financial impact on the construction industry as a result of the modifications being proposed to the existing codes. The following is a brief summary of purpose and rationale for each specific amendment. CHAPTER 2 -- DEFINITIONS SECTION 213 -- L Light -Frame Construction Purpose: The 1997 UBC, on several occasions, refers to "Light -Frame" construction. However, currently there is no definition for this term in Chapter 2 or 16. This could lead to confusion in the design and review process. Rationale: The proposal inserts new language, with additional clarification, which clearly identifies the types of construction, which could be deemed as light frame. BSC-ISOR Adoption of Updated Seismic Provisions 2 7-15-03 CHAPTER 16 — STRUCTURAL FORCES 1612.3.2.1 Alternate basic load combinations. Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: The proposal clarifies that it was not the intent of the code to allow the one-third increase for wind or earthquake to be cumulative with duration of load factors as permitted in chapter 23 of UBC, by inserting new language that explicitly indicates that. 1629.4.2. Seismic Zone 4 near -source factor. Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: Sections 9.6a and 9.6b of AISC - Seismic Part 1 exempts strong-column/weak-beam requirements under certain load conditions and configurations for steel Special and Intermediate moment frames. Page 8 • 97 UBC Section 1629.4.2 item 4 require that structures located near fault shall comply with SC/WB The revision reflects the same requirements as in 1997 AISC-Seismic. This is consistent with SEAOC Seismology position. 1630.2.3.4 Horizontal Distribution Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: To ensure that the assumption of flexible diaphragms are limited only to simplified procedure which requires design for additional seismic loads. 1630.4.2.1 Vertical Combinations Purpose: To add language to ensure that the seismic forces are not inadvertently reduced from higher level to a lower level due to different lateral force resisting systems along the height of the building. Rationale: This amendment is needed due to local geological conditions. 1630.8.2.1.1 General. Purpose: The added language clarifies the types of elements that would be of concern, such as beams and column supporting discontinuous systems. It also ensures that the connection of such discontinuous elements are designed for a load less that the member above is designed for. For example in case of steel columns that are part of lateral force resisting system, which are designed for the special load combination, it is critical to ensure that their connections also have sufficient capacity to transmit the load to the supporting element. Rationale: To clarify the application of special seismic load combination to discontinuous systems, since the code currently only refers to the material types to be considered not which types of elements. 1630.8.2.2.1 Detailing requirements in Seismic Zones 3 and 4. Purpose: The provision is adopted in AISC-Seismic 97 Part 1, Section 8.3 and applicable to all axial loaded members. Redundant. Rationale: Old section is no longer applicable. Replace -with provision in the AISC-Seismic. TABLE 16.1N— STRUCTURAL SYSTEMS Purpose: The proposal allows the use of Ordinary Moment Frames and Intermediate Moment frames with certain limitations on height and dead load. Rationale: Editorially revise/update table to make it consistent with the adoption of 1997 AISC-Seismic Provisions and the latest Supplements. These provisions are fundamentally updated from previous editions. It has incorporated to the extent possible, most recent findings from the FEMA funded SAC Reports. CHAPTER 17 — STRUCTURAL TESTS AND INSPECTIONS 1701.5 Types of Work, Sec. 5.2 Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: To be consistent with AISC-Seismic Part I requirements for nondestructive testing for welded joints that are subject to net tensile forces in moment frames and braced frames. SECTION 1702.1— STRUCTURAL OBSERVATION Purpose: The current wording for requiring structural observation does not provide adequate accountability nor good record and is in need for improvement. This modification will correct this deficiency. Page 9 Rationale: • • The provision is amended to better define the requirement for Structural Observation. It also allows BSC-ISOR Adoption of Updated Seismic Provisions 4 7-15-03 the construction team members to coordinate and communicate more and for Building Officials to keep better record of the required activities. Enhanced enforcement of the Structural Observation will improve construction quality in general. SECTION 1703.1— NONDESTRUCTIVE TESTING Purpose: restrictions were added to both steel moment resisting frame and steel braced frame systems. The current language only pertains to moment resisting frame systems and does not include other steel systems. Rationale: Section 1703 outlines the requirements for nondestructive testing of structural elements and connections. 1997 AISC-Seismic Part 1, which is adopted by the CBSC for DSA and OSHPD, requires nondestructive testing for all welded joints in moment frames and braced frames. This amendment reconciles Section 1703 with 1997 A1SC-Seismic for consistency. CHAPTER 19 - CONCRETE 1915 — FOOTINGS 1915.2.2.1 Purpose: The existing code language for the design of footings per Allowable Stress Design criteria refers to unfactored loads, which is not correct. The load combinations used for allowable stress design actually have some load factors associated with different types of loads. This change will correct this condition. Rationale: The proposed language eliminates the reference to unfactored loads and directly references the appropriate section for the load combinations, which need to be used. 1928.1.2.3.1 Basic Calculations Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: Editorially revise/update Basic Calculations to make it consistent with the adoption of 1997 A!SC Seismic Provisions and the latest Supplements. These provisions are fundamentally updated from previous editions. BSC-ISOR Adoption of Updated Seismic Provisions 5 7-15-03 CHAPTER 22 - STEEL 2204.1.1 Load and Resistance Factor Design Purpose: Research after the 1994 Northridge earthquake conducted by FEMA funded SAC Joint Venture concluded that more restricted use of steel moment frame and braced frame buildings is required. Subsequent national standards such as NEHRP 2000 and ASCE 7-2002 implemented these restrictions. The 1997 AISC-Seismic Provisions was adopted by CBSC in March 2002, but applicable only to OSHPD and DSA, should be applicable to buildings of all occupancies. Furthermore, A!SC has released Supplement No. 2, which supercedes Supplement No. 1. Rationale: Section 2204 is editorially revised/updated to make it consistent with the CBSC adoption of 1997 A1SC-Seismic Provisions Parts I and 111, and its latest Supplements. AISC-Seismic Parts I and Ill, which is adopted by the CBSC for OSHPD and DSA, will then be applicable to all buildings constructed with structural steel in Califomia. 2204.2.1 Allowable Stress Design. Purpose: Page 10 Research after the 199 orthridge earthquake conducted by Ft funded SAC Joint Venture concluded that more restricted use of steel moment frame and braced frame buildings is. - required. Subsequent national standards such as NEHRP 2000 and ASCE 7-2002 implemented these restrictions. The 1997 AISC-Seismic Provisions was adopted by CBSC in March 2002, but applicable only to OSHPD and DSA, should be applicable to buildings of all occupancies. Furthermore, AISC has released Supplement No. 2, which supercedes Supplement No. 1. Rationale: Section 2204 is editorially revised/updated to make it consistent with the CBSC adoption of 1997 AISC-Seismic Provisions Parts I and Ill, and its latest Supplements. AISC-Seismic Parts I and Ill, which is adopted by the CBSC for OSHPD and DSA, will then be applicable to all buildings constructed with structural steel in California. CHAPTER 22B, STEEL 2205.3B Seismic Design Provisions for Structural Steel BSC-ISOR Adoption of Updated Seismic Provisions 6 7-15-03 Division IV — SEISMIC PROVISIONS FOR STRUCTURAL STEEL BUILDINGS 2210B — Adoption 2211B – Design Method s 2212B – Amendments 2213B — Adoption 2214B — Design Methods 2215B — Amendments Purpose: The proposal corrects a significant deficiency in the 1997 UBC. Rationale: The current 97 UBC edition is based on the outdated 1992 AISC Seismic provisions. The proposal makes the CBC provisions consistent with the current practice which is based on the 1997 AISC Seismic with the 2 subsequent Supplements printed afterward. CHAPTER 23 - WOOD 2315.5.6 Hold-down connectors. Purpose: Extensive damage to the sill plates and posts connected to hold-downs were observed after the 1994 Northridge earthquake. The misaligned bolt holes, lack of sufficient contact area between the washer and the wood element and omission of re -tightening of bolts were the major attributes to the poor performance. Rationale: The observed failures led to the recommendation to use larger, square steel plate washers to reduce splitting of sill plates, the proposal applies the same rationale to the design of hold -own bolts. Table 23 -II -L MINIMUM SIZE STEEL PLATE WASHERS USED WITH HOLDOWN CONNECTORS Purpose: Extensive damage to the sill plates and posts connected to hold-downs were observed after the 1994 Northridge earthquake. The misaligned bolt holes, lack of sufficient contact area between the washer and the wood element and omission of re -tightening of bolts were the major attributes to the poor performance. Rationale: The observed failures led to the recommendation to use larger, square steel plate washers to reduce splitting of posts in future earthquakes. DIVISION III – DESIGN SPECIFICATIONS FOR ALLOWABLE STRESS DESIGN OF WOOD BUILDINGS PART I – ALLOWABLE STRESS DESIGN 2316.1 Adoption and Scope BSC-ISOR Adoption of Updated Seismic Provisions Page 11 7 7-15-03 • • Purpose: To update the current design criteria for wood framed buildings specification, which is more than 10 years old. This action will update this provision. Rationale: To update the 97 UBC with the American Forrest and Paper Association and the American Wood Council publication of the 1997 NDS specifications, which incorporates many of the recent findings that were researched since publication of 1991 NDS, and it is also in a user - friendlier format. TECHNICAL, THEORETICAL, AND EMPIRICAL STUDY, REPORT, OR SIMILAR DOCUMENTS: (Government Code Section 11346.2(b)(2) requires an identification of each technical, theoretical, and empirical study, report, or similar document, if any, upon which the agency relies in proposing the regulation(s).) 1. AISC 97: Seismic design provision with supplement 1 & 2 2. FEMA funded SAC reports on steel moment frames 3. SEAOC blue book 4. SEAOC Seismology Committee recommendations 5. NDS 97: National Design Specifications for Wood Construction of the American Forest and Paper Association and supplement to the 1997 edition. CONSIDERATION OF REASONABLE ALTERNATIVES (Government Code Section 11346.2(b)(3)(A) requires a description of reasonable alternatives to the regulation and the agency's reason for rejecting those alternatives. In the case of a regulation that would mandate the use of specific technologies or equipment or prescribe specific action or procedures, the imposition of performance standards shall be considered as an alternate) The Building Standards Commission has determined that there are no other reasonable alternatives considered that would be more appropriate REASONABLE ALTERNATIVES THE AGENCY HAS IDENTIFIED THAT WOULD LESSEN ANY ADVERSE IMPACT ON SMALL BUSINESS. (Government Code Section 11346.2(b)(3)(B) requires a description of any reasonable alternatives that have been identified or that have otherwise been identified and brought to the attention of the agency that would lessen any adverse impact on small business. Include facts, evidence, documents, testimony, or other evidence upon which the agency relies to support an initial determination that the action will not have a significant adverse impact on business.) No alternatives were identified to lessen the adverse impact on small businesses. FACTS, EVIDENCE, DOCUMENTS, TESTIMONY, OR OTHER EVIDENCE OF NO SIGNIFICANT ADVERSE IMPACT ON BUSINESS. (Government Code Section 11346.2(6)(4) requires the facts, evidence, documents, testimony, or other evidence on which the agency relies in to support an initial determination that the action will not have a significant adverse economic impact on business) No facts, evidence, documents, testimony, or other evidence of no significant adverse economic impact on business have been identified however, the adoption of more current seismic structural requirements is necessary to preserve the health and welfare of the citizens of California during seismic activity: DUPLICATION OR CONFLICTS WITH FEDERAL REGULATIONS (Government Code Section 113465.2(b)(5) requires a department, board, or commission within the Environmental Protection Agency, the Resources Agency, or the Office of the State Fire Marshal describe its efforts, in connection with a proposed rulemaking action, to avoid unnecessary duplication or conflicts with federal regulations contained in the Code of Federal Regulations addressing the same issues. These agencies may adopt regulations different from these federal regulations upon a finding of one or more of the following justifications: (A) The Page 12 • . • differing state regulations are authorized by law and/or (B) The cost of differing state regulations is justified by the benefit to human health, public safety, public welfare, or the environment. It is not the intent of this paragraph to require the agency to artificially construct alternatives or to justify why it has not identified alternatives) There is no known conflict or duplication with any of the State or Federal agency regulations. On the contrary, these regulations, if approved will be at par with the Federal and State of California regulations. Page 13 •Attachment No. 4 CALIFORNIA BUILDING STANDARDS COMMISSION NOTICE REGARDING PROPOSED AMENDMENTS TO THE CALIFORNIA BUILDING CODE (CALIFORNIA CODE OF REGULATIONS, TITLE 24, PART 2) MODIFICATIONS TO SEISMIC UPDATES TO STRUCTURAL PROVISIONS The Califomia Building Standards Commission (CBSC) is proposing modifications to the permanent adoption of emergency building standards. previously noticed, updating structural provisions in the California Building Code (California Code of Regulations. Title 24. Part 2). Last day to submit comments: July 16, 2004 MODIFICATIONS MADE TO NOTICED EXPRESS TERMS LEGEND FOR EXPRESS TERMS 1. 15 -Day new California language: All such language appear double underlinQri 2. Repealed 15 -Day text: All such language appears in Editorial Revisions to emeraencv adoption: 1. A referral note to use Table 16.1-N for BSC occupancies is being added to the model code Table 16-N. 2. Table 16.1-N [For BSC] Structural Systems; Two editorial modifications were made to this table. In from the original 45 -Day language, the Omega symbol was not recognized by the software that was being used at the time. A place holder was produced by the software and was not corrected prior to it being distributed in the 45 -Day language. The publishers final distributed version of this table was printed correctly. The second of the two modifications was to correct a footnote reference for item 3. Moment -resisting frame system, sub -item 4, (OMRF). The footnote referred to footnote 6. This has been corrected to refer to the correct footnote 6.2. 3. In Section 2212B and 2215B there are exceptions to the sections following the equations for load factors. Within the exception language there is a misspelled word. This action will correct the misspelled word. 4. Chapter 23; The original format of the 45 -Day Building Standards Commissions (BSC) emergency package resulted in a publication error. This action reformats the Chapter 23 amendments into an altemative format that does not change the effect of the originally proposed text, but clarifies BSC's application. CHAPTER 16 - STRUCTURAL DESIGN REQUIREMENTS TABLE 16-N - STRUCTURAL SYSTEMS (For Occupancies reoulated by BSC use Table 16.1-N1 TABLE 16.1-N — [For BSC] STRUCTURAL SYSTEMS Page 14 BASIC STRUCTURAL SYSTEM2 LATERAL -FORCE -RESISTING SYSTEM DESCRIPTION R Q HEIGHT LIMIT FOR SEISMIC ZONES 3 AND 4 (feet) x 304.8 for mm 1. Bearing wall system 1. Light -framed walls with shear panels a. Wood structural panel walls for structures three stones or less 5.5 2.8 65 b. All other light -framed walls 4.5 2.8 65 2. Shear walls a. Concrete 4.5 2.8 160 b. Masonry 4.5 2.8 160 3. Light steel -framed bearing walls with tension -only bracing 2.8 2.2 65 4. Braced frames where bracing carries gravity load 4.4 2.2 160 . a. Steel 2.8 2.2 - b. Concrete3 c. Heavy timber 2.8 2.2 65 2. Building frame system 1. Steel eccentrically braced frame (EBF) 2. Light -framed walls with shear panels. 7.0 2.8 240 a. Wood structural panel walls for structures three stories or less 6.5 2.8 65 b. All other light -framed walls 5.0 2.8 65 3. Shear walls a. Concrete 5.5 2.8 240 b. Masonry 5.5 2.8 160 4. Ordinary braced frames a. Steel 6 554 2 35 6 b. Concrete3 5.6 - - c. Heavy timber 5.6 2.2 65 5. Special concentrically braced frames 2.2 a. Steel 6.4 240 2.2 Page 15 3. Moment -resisting 1. Special moment -resisting frame (SMRF) frame system a. Steel 8.5 2.8 N.L. b. Concrete4 8.5 2.8 N.L. 2. Masonry moment -resisting wall frame 6.5 2.8 160 (MMRWF) 3. Intermediate moment -resisting frame (IMRF) 4.5 2.8 358 a. Steele b. Concretes 5.5 2.8 - 4. Ordinary moment -resisting frame (OMRF) 3.5 2.8s41 a. Steele 3.5 2.8 - b. Concrete8 6.5 2.8 240 5. Special truss moment frames of steel (STMF) 4. Dual systems 1. Shear walls a. Concrete with SMRF 8.5 2.8 N.L. b.. Concrete with steel OMRF (Not 4.2 2.8 160 Permitted) 6.5 2.8 160 c. Concrete with concrete IMRF 5 5.5 2.8 160 d. Masonry with SMRF 4.2 2.8 160 e. Masonry with steel OMRF (Not 4.2 2.8 - Permitted) f. Masonry with concrete IMRF 3 6.0 2.8 160 g. Masonry with masonry MMRWF 8.5 2.8 N.L. 2. Steel EBF a. With steel SMRF 4.2 2.8 160 b. With steel OMRF (Not Permitted) 6.5 2.8 N.L. 3. Ordinary braced frames (Not Permitted) 4.2 2.8 160 a. Steel with steel SMRF 6.5 2.8 - b. Steel with steel OMRF c. Concrete with concrete SMRF3 4.2 2.8 - d. Concrete with concrete IMRF3 7.5 2.8 N.L. 4. Special concentrically braced frames a. Steel with steel SMRF b. Steel with steel OMRF (Not Permitted) , 4.2 2.8 160 5. Steel IMRF (Not permitted) 5. Cantilevered 1. Cantilevered column elements 2.2 2.0 357 column building systems 6. Shear wall -frame 1. Concrete' 5.5 2.8 160 interaction systems 7. Undefined systems See Section 1629.6.7 and 1629.9.2 - - - Ni.- no limit Page 16 • See Section 1630.4 for combination structural systems. 2 Basic structural systems are defined in Section 1629.6. ' Prohibited in Seismic Zones 3 and 4. ' Includes precast concrete conforming to Section 1921.2.7. 6 Prohibited in Seismic Zones 3 and 4, except as permitted in Section 1634.2. °Unless otherwise approved by the enforcement agency, in Seismic Zone 4 : 61 Steel IMRF are permitted for buildings 35 R. or less in height and the dead load of the roof, walls or floors not exceeding 35 psf each; or for single -story buildings 60 ft. or less in height with dead load of the roof or walls not exceeding 15 psf each where the moment joints of field connections are constructed of bolted end plates: or single-family dwellings using light frame construction with R= 3.0 and 0,=2.2. t2 Steel OMRF are permitted for buildings 35 ft or less in height with the dead load of the roof. walls or floors not exceeding 15 psf each; or single -story buildings 60 ft or less in height with the dead load of the roof or walls not exceeding 15 psf each and where the moment joints of field connections are constructed of bolted end plates. °' Steel Ordinary Braced Frames are permitted for buildings 35 ft or less in height; or penthouse structures; or single -story buildings 60 ft or less in height with the dead load of the roof or walls not exceeding 15 psf. each. ' Total height of the building including cantilevered columns. ° Prohibited in Seismic Zones 2A, 2B. 3 and 4. See Section 1633.2.7. • �• — ••s ter-- .r -.^ — a-.rtr A Notation Authority: [Health and Safety Code, Section 18934.5] Reference(s): [Health and Safety Code, Sections 18928 & 18934.5] 2212B - AMENDMENTS The AISC-Seismic adopted by this Division apply to the seismic... 1. Part I, Sec. 1. of the AISC Seismic Provisions is revised as follows: 1. SCOPE These provisions are intended for the design and construction of structural steel members and connections in the Seismic... ... to this Part, and Appendix S. 2. Part I, Sec. 4.1. of the AISC Seismic Provisions is deleted and replaced as follows: 4.1 Loads and Load Combinations The loads and load combinations shall... Exception: the load factor on L in load combination 4-1 shall be equal to 1.O -for garages, areas occupied ass places of public assembly and all areas where the live load is greater than 100 psf. 2215B -AMENDMENTS The AISC-Seismic adopted by this Division apply to the seismic... 1. Part Ill, Sec. 1. of the AISC Seismic Provisions Is revised as follows: 1. SCOPE These provisions are intended for the design and construction of structural steel members and connections in the Seismic Force... ...applicable to this Part. and Appendix S. 2. Part III, Sec. 4.1. of the AISC Seismic Provisions is deleted and replaced as follows: 2.1 Loads and Load Combinations The loads and load combinations shall be those in... Exception: the load factor on L in load combination 4-1 shall be equal to 1.0 for garages, areas occupied ass places of public assembly and all areas where the live load is greater than 100 psf. Page 17 • CHAPTER 23 — WOOD • Division III —DESIGN SPECIFICATIONS FOR ALLOWABLE STRESS DESIGN OF WOOD BUILDINGS • Part I — ALLOWABLE STRESS DESIGN OF WOOD This standard, with certain exceptions, is the ANSIMFoPA NDS -91 [For BSC. NDS -971 National Design Specification for Wood Construction of the American Forest and Paper Association, 1991 Edition, and the Supplement to the 1991 Edition, jFnr BSC. NDS -971 National Design Specification, adopted by reference. The National Design Specification for Wood Construction, 1991 Edition, [For BSC. NDS -971 and supplement are available from the American Forest and Paper Association, 1111 19th Street. NW, Eighth Floor. Washington, DC, 20036. SECTION 2316 - DESIGN SPECIFICATIONS 2316.1 Adoption and Scope. The National Design Specification for Wood Construction, 1991 Edition (NDS) For BSC. 1997 Edition (NfSj as ampndpd by Ser 23161 which is hereby adopted For RSC except for item 14, 26 & 27] as a part of this code, shall apply to the design and construction of wood structures using visually graded lumber, mechanically graded lumber, structural glued laminated timber, and timber piles. National Design Specifications Appendix Section F. Design for Creep and Critical Deflection Applications, Appendix Section G. Effective Column Length, and Appendix Section J. Solution of Hankinson Formula are specifically adopted and made a part of this standard. The Supplement to the 1991 Edition National Design Specification, [For RSC NfS-971 Tables 2A. 4A, 4B. 4C, 4D, 4E, 5A, 5B and 5C are specifically adopted and made a part of this standard. Other codes, standards or specifications referred to in this standard are to be considered as only an indication of an acceptable method or material that can be used with the approval of the building official, except where such other codes, standards or specifications are specifically adopted by this code as primary standards. 2316.2 Amendments.... • 2! Notation Authority: [Health and Safety Code, Section 18934.5] Reference(s): [Health and Safety Code, Sections 18928 & 18934.5] PUBLIC COMMENT PERIOD Written comments on the modifications may be submitted to CBSC by July 16, 2004 and at the following address: California Building Standards Commission 2525 Natomas Park Drive, Suite 130 Sacramento, CA 95833 Attention: Stanley T. Nishimura, Executive Director Written comments may also be faxed to (916) 263-0959 or e-mailed to CBSC(6 das.ca.Qov. Page 18 • AVAILABILITY OF RULING DOCUMENTS • All of the information upon which the proposed regulations are based is contained in a rulemaking file, which is available for public review, by contacting the person named below. Once the Final Statement of Reasons addressing public comment has been prepared, interested parties may obtain a copy by making a written request to the contact person named below. CBSC CONTACT PERSON FOR PROCEDURAL AND ADMINISTRATIVE QUESTIONS General questions regarding procedural and administrative issues should be addressed to: Michael Nearman or Tom Morrison (back-up person) 2525 Natomas Park Drive. Suite 130 Sacramento, CA 95833 Telephone No.: (916) 263-0916 Facsimile No.: (916) 263-0959 Specific questions regarding the substantive and/or technical aspects of the proposed changes to the building standards should be addressed to: Michael Nearman, Code Analyst California Building Standards Commission (916) 263-5888 Michael.Neannan©dgs.ca.gov (916) 263-0959 Page 19 • 4c/ July 20, 2004 2/� 7/0Y Honorable Mayor and Members of City Council Meeting of the Hermosa Beach City Council July 27, 2004 2002-03 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) (Including Report from Independent Auditor) RECOMMENDATION It is recommended that the City Council: Receive and file the 2002-03 Comprehensive Annual Financial Report (CAFR), which includes the report from Caporicci and Larson, our independent auditors. BACKGROUND Annually the City has a financial audit performed by an independent, certified public accounting firm. The auditor's report is located behind the second divider that is labeled "Financial Section". Normally, the CAFR is complete by December and presented to City Council in January. This year was a year of great change year because of the implementation of GASB 34. GASB, or the Governmental Accounting Standards Board, is the standard-setting body for state and local government financial reporting. GASB 34 is the statement that established new financial reporting standards, which, for our City, were implemented for the 2002-03 fiscal year reporting. Implementation of the new standards involved a complete overhaul of report formatting for 2002-03 and conversion of the previous year's data in addition to 2002-03 in order to have comparative information. Well over a year of planning was required, involving not only the Finance staff but also Public Works, an outside appraisal firm and additional services from the auditors. The staff appreciates the City Council's support for the extra effort and the financial resources for the additional services that were required to make it happen. The most recent fund balances, as contained in the 2002-03 CAFR were used in the 2004-05 Preliminary Budget, therefore the City Council did have accurate information when considering the 2004-05 Preliminary Budget. The fact that the CAFR had not actually been presented to the City Council did not, therefore, affect any of the decision-making. Staff plans to present the 2003-04 CAFR at the normal time. Some of the efforts involved in the project were the independent identification and appraisal of the city's infrastructure assets, which involved Public Works and American Appraisal, development of accounting data to convert to and support the new statements, development of new fixed asset policies and new systems for recording the infrastructure assets. The City again received an unqualified opinion, which indicates that the auditor believes the financial statements present a fair picture of the financial position of the City, as opposed to a qualified opinion, in which the auditor "qualifies" or limits his opinion for specific reasons, such as lack of fixed asset accounting, significant internal control deficiencies or now, non- compliance with GASB 34. F:\B95\FINANCEI\CAFR\cafr0203 city council item.doc 6a The report has again submitted to the Government Finanlikfficers Association (GFOA) to qualify for the Certificate of Achievement for Excellence in Financial Reporting for the ninth time. The filing deadline was extended in consideration of GASB 34 implementation. The award program requires a high level of compliance with governmental standards, inclusion of information well beyond the general-purpose financial statements and an unqualified audit opinion. ANALYSIS The new reporting model: • presents financial information in new formats, namely, the Government Wide Financial Statements, beginning on page 15. These are designed to show net assets and equity of the City as a whole, provide information on the cost of services and show how programs are financed. • requires a new section, Management's Discussion and Analysis (MD &A) to present financial highlights and assess performance for the year. • requires reporting on "major" funds rather than aggregate fund types. • requires accrual accounting for all govemmental funds, meaning that long term assets and liabilities (such as capital assets, including infrastructure) are included in addition to short term assets and liabilities. All revenues and all costs of providing services are also reported, not just those received or paid in orsoon after year-end. Much of the information previously contained in the staff report is now found in the MD &A starting on page 3. General Fund information is found on page 10. Detailed sales tax information, however, is not included in the CAFR, therefore it is presented below. Sales tax represents 15% of total General Fund revenue and declined by 6% from 2001-02, primarily due to the Toss of the Porsche/Audi dealership and associated lease revenue. 2002-03 Sales Tax By Class* Top Ten Categories RANK/BUSINESS CLASS Sales Tax 2002-03 Increase/ (Decrease) % of Change Prev. Yr. of Total 1. Auto dealers and Supplies x732;516 (164,504) (18.34). 33.60 2. Eating/Drinking Places 588,939 21,120 3.72 27.01 3. Other Retail 213,255 10,386 ! 5.12 9.78 4. Food Stores 197;822 7,322 3.84 9.07 5. Building Materials 130,038 2,717 2.13 5.96 6. Business, Service and Repair 102,213 (9,978) (8.89) 4.69 7. Service Stations 77;371 16,435 26.97 3.55 8. Furniture/Appliance 56,423 6,674 13.42 2.59 9. Wholesale Furniture/Textiles 49,194 2,261 4.82 2.26 10. Non -store and Part time Retailers 32,317 (7,078) (1,7.97) 1.48 Threshold for inclusion, $300 per quarter F:\B95\FINANCEI\CAFR\cafr0203 city council item.doc 2 Sales Tax by Geographic Area Pier/Valley/ Monterey 16% Downtown 23% Aviation 4% PCH 59% Gary Caporicci, the partner in charge of our audit, will be available at the meeting to make some comments about the new CAFR model and to answer any questions you may have. Since the reporting model is new for all of us, if you have particular questions, we would appreciate knowing them in advance so we can give an adequate answer. CON' R: Step in Burrell, City Manager Viki Col eland, Finance Director The reports are available for review in the library and the Finance Department. F:\B95\FINANCEI\CAFR\cafr0203 city council item.doc 3 Revenue % of Revenue % of LOCATION 2001-02 Total % Chg 2002-03 Total PCH $1,303,871 62 (9) 1,185,399 59 Downtown 448,084 21 1 453,675 23 PierNalley/Monterey 283,568 13 5 297,012 1 5 Aviation 72,661 3 6 77,326 , 4 Pier/Valley/ Monterey 16% Downtown 23% Aviation 4% PCH 59% Gary Caporicci, the partner in charge of our audit, will be available at the meeting to make some comments about the new CAFR model and to answer any questions you may have. Since the reporting model is new for all of us, if you have particular questions, we would appreciate knowing them in advance so we can give an adequate answer. CON' R: Step in Burrell, City Manager Viki Col eland, Finance Director The reports are available for review in the library and the Finance Department. F:\B95\FINANCEI\CAFR\cafr0203 city council item.doc 3 City of Hermosa Beach, California For the year ended June 30, 2003 City of Hermosa Beach Hermosa Beach, California Comprehensive Annual Financial Report For the year ended June 30, 2003 PREPARED BY THE CITY OF HERMOSA BEACH, CALIFORNIA FINANCE DEPARTMENT VIKI L. COPELAND, FINANCE DIRECTOR City of Hermosa Beall Basic Financial Statements For the year ended June 30, 2003 Table of Contents Page INTRODUCTORY SECTION Table of Contents i Letter of Transmittal v Certificate of Achievement for Excellence in Financial Reporting - Governmental Finance Officers Association xi Certificate of Award for Outstanding Financial Reporting - California Society of Municipal Finance Officers xii Organizational Chart xiii Principal Officials of the City of Hermosa Beach xiv FINANCIAL SECTION Independent Auditors' Report 1 Management Discussion and Analysis 3 Basic Financial Statements: Government - Wide Financial Statements: Statement of Net Assets 17 Statement of Activities and Changes in Net Assets 18 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet 26 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets 29 Statement of Revenues, Expenditures and Changes in Fund Balances 30 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government - Wide Statement of Activities and Changes in Net Assets 32 Proprietary Fund Financial Statements: Statement of Net Assets • 36 Statement of Revenues, Expenses and Changes in Fund Net Assets 37 Statement of Cash Flows 38 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 42 Index to Notes to Basic Financial Statements 43 Notes to Basic Financial Statements 45 Required Supplementary Information 75 i City of Hermosa Beach Basic Financial Statements For the year ended June 30, 2003 Table of Contents, Continued Page FINANCIAL SECTION, Continued Supplementary Information: Non -Major Governmental Funds: Combining Balance Sheet 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 94 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Non -Major Special Revenue Funds: Lighting and Landscape District 99 State Gas Tax 100 AB 939 101 Compensated Absences 102 County Gas Tax 103 Prop A Open Space 104 Parks and Recreation Facilities 105 4% Utility Users Tax 106 Building Improvement 107 Lower Pier Administrative Expense 108 Myrtle District Administrative Expense 109 Loma District Administrative Expense 110 Community Development Block Grant 111 Office of Traffic Safety Grant 112 Air Quality Management District 113 Supplemental Law Enforcement Services (COPS) 114 California Law Enforcement Program (CLEEP) 115 Taskforce for Regional Auto Theft Prevention 116 Asset Seizure and Forfeiture Fund 117 Fire Protection 118 Artesia Boulevard Relinquishment 119 Lower Pier Avenue Assessment District 120 Myrtle Utility Underground Improvement 121 Loma Utility Underground Improvement 122 Bayview Drive Underground District 123 Bonnie Brae Underground District 124 Beach Drive Underground District 125 Non -Major Proprietary Funds: Combining Statement of Net Assets • 128 Combining Statement of Revenues, Expenditures and Changes in Net Assets 129 Combining Statement of Cash Flows 130 Internal Service Funds: Combining Statement of Net Assets 132 Combining Statement of Revenues, Expenses and Changes in Net Assets 133 Combining Statement of Cash Flows 134 ii City of Hermosa Bead. Basic Financial Statements For the year ended June 30, 2003 Table of Contents, Continued Page FINANCIAL SECTION, Continued Supplementary Information, Continued: Fiduciary Fund Financial Statements: Combing Statement of Fiduciary Net Assets 136 Combing Statement of Changes in Assets and Liabilities 137 Capital Assets Used in the Operating Of Governmental Funds: Schedule by Source 140 Schedule by Function and Activity 141 Schedule of Changes in Capital Assets by Function and Activity 142 STATISTICAL SECTION (Unaudited) Government -Wide Revenues 144 Government -Wide Expense - By Function 145 General Governmental Revenues by Source - Last Ten Fiscal Years 146 General Governmental Expenditures by Function - Last Ten Fiscal Years 147 Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 148 Property Tax Rates and Tax Levies - All Direct and Overlapping Governments - Last Ten Fiscal Years 149 Property Tax Levies and Collections - Last Ten Fiscal Years 150 Computation of Legal Debt Margin 151 Statement of Direct and Overlapping Debt • 152 Demographic Statistics - Last Ten Fiscal Years 153 Construction Value, Property Value and Bank Deposits - Last Ten Fiscal Years 154 Schedule of Insurance 155 Top Property Taxpayers 156 Top 25 Sales Tax Producers 157 Major Employers 158 Taxable Sales by Category 159 Miscellaneous Statistics 160 iii • • This page intentionally left blank iv • City o f5iermosarl3eacly Civic Center, 1315 Valley Drive, Hermosa Beach, California 90254-3885 January 14, 2004 Honorable Mayor and Members of the City Council: Introduction I am pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Hermosa Beach for the fiscal year ended June 30, 2003. The report is intended to update readers on the status of the City's financial position and results of operations for the past fiscal year. This is the first CAFR prepared using the new financial reporting requirements established by Governmental Accounting Standards Board (GASB) Statement 34 for state and local governments throughout the United States. Some of the information previously reported is retained, including financial statements that present information about funds. New information includes a required management's discussion and analysis (MD&A), which gives readers an objective and easily readable analysis of the government's financial performance for the year and government -wide financial statements, prepared using accrual accounting for all of the government's activities. Long term assets and liabilities (such as capital assets, including infrastructure and general obligation debt) are measured in addition to current assets and liabilities. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Hermosa Beach's MD&A can be found immediately following the report of the independent auditors. Management's representations concerning the finances of the City of Hermosa Beach are contained herein. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hermosa Beach has established an internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hermosa Beach's financial statements in conformity with generally accepted accounting principles (GAAP) . Because the cost of internal controls should not outweigh their benefits, the City of Hermosa Beach's framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Audit The City of Hermosa Beach's financial statements have been audited by Caporicci & Larson, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hermosa Beach for the fiscal year ended June 30, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial V • • statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Hermosa Beach's financial statements for the fiscal year ended June 30, 2003, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. Profile of the Government The City of Hermosa Beach is a beachfront, bedroom community with a stable population, located four miles south of Los Angeles International Airport. The City occupies 1.3 square miles and serves a population of 19,375, according to the State's latest population estimate. However as a beach city, Hermosa experiences a high visitor population and the associated costs. Due to this high visitor population, the City operates in many ways like a larger city. During the 2002-03 fiscal year, beach attendance ranged from a low of 45,400 in October 2002 to a high of 730,000 in July 2003, according to the Los Angeles County Fire Department, Lifeguard Division. The City of Hermosa Beach, incorporated on January 14, 1907 as a general law city, operates under the Council -Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of five members of the City Council elected on a non- partisan basis at large for a four-year term. Councilmembers serve four-year, staggered terms, with an election every two years. One member is chosen by fellow members to serve as Mayor for a period of nine months; one is chosen to serve as Mayor Pro Tem. The Council is responsible for, among other things, establishing policy, passing ordinances, adopting an annual budget; appointing members to various City Commissions and Boards and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. Hermosa Beach offers a full range of municipal services, including police and fire protection, community development (planning and zoning), cultural, recreation and parks, maintenance and construction of public improvements, parking and animal control, and general administration. Financial information for the Downtown Business Area Enhancement District, the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue and Loma Drive Utility Underground Districts are included in the City's financial statements as required by governmental accounting standards. The annual budget serves as the foundation for the City of Hermosa Beach's financial planning and control. All departments of the City of Hermosa Beach are required to submit requests for appropriation to the City Manager according to a budget calendar. . The City Manager uses these requests as the starting point for developing a proposed budget, which is presented to the City Council for review by May 15. The City Council is required to hold a public hearing on the budget, with adoption no later than June 30th. The appropriated budget is prepared by fund and department (e.g., police). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. A midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budget -to -actual comparisons are provided vi • in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 77 as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented as supplementary information in the governmental fund subsection of this report, which starts on page 99. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Hermosa Beach operates. Local economy. As a beachfront community, with more bedrooms than businesses, Hermosa Beach had the ninth highest percentage change in assessed valuation of the 88 cities in Los Angeles County for 2002-03. The assessed valuation has risen, on average, 9% per year for the past five years, making property tax the number one revenue source in the General Fund. Median home prices in Hermosa Beach as of June 2003 were $644,000, compared to 329,000 for Los Angeles County. Hermosa Beach's three highest employment industries are food services, administrative and support and retail trade, however residents enjoy access to a much more diverse employment base with the close proximity of all of the other cities in Los Angeles County. The unemployment rate in Hermosa Beach is 1.7%, compared with 6.8% for Los Angeles County. Sales tax growth up until 2001-02, averaged 12% per year, with a proliferation of eating and drinking places, particularly in the downtown area, and sales of high-end new and used vehicles. With the loss of two auto dealerships over 2001-2003, sales tax declined by 8%, however a 32% increase in transient occupancy tax from two new hotels and the expansion of an existing beachfront hotel, more than offset the loss for that period. California Public Employees Retirement System (Ca1PERS). City retirement rates will increase for the next two years significantly (particularly 2004-05) due to investment losses sustained by CaIPERS. Actual losses for 2002 and 2001, respectively were - 5.97% and - 7.23% compared to estimated earnings of + 8.25% for each year. On a positive note, however, Ca1PERS just announced that earnings were + 18.7% for 2003, suggesting a return to a healthier portfolio and higher investment returns which could pave the way for lower city contribution rates. State budget. Discussion of the local economy would not be complete without mention of the State's condition as well, since in past years, the State has balanced a portion of their budget with funds taken from local government. The State has faced an ever-growing deficit since the 2002-03 budget was presented. As of this writing, the State has "borrowed" from local government $1.3 billion in vehicle license fee revenue for June 2003 through November 2003 (ostensibly to be paid back in 2006) and proposes to shift another $1.3 billion in property tax funds to balance the State budget. Raids of this type make budget -balancing at the local level somewhat of a guessing game. vii • • Long-term financial planning. The City's long term financial planning focuses on the Five - Year Capital Improvement Plan, which is produced in conjunction with the annual budget. Since the City is built out, the plan primarily addresses maintenance, repair and upgrading of facilities and infrastructure, particularly streets and sewers. One of the City's financial policies is to set aside funds unspent in the General Fund at year-end for four purposes, one of which is capital improvements. These funds are primarily spent for street improvements. Sewer and storm drain improvements are funded by a portion of the utility user tax revenue which is set aside for that purpose. With renovation of City Hall and a complete overhaul of our primary park complete in 2002-03, primary projects coming up, (other than street and sewer improvements, which occur every year) are renovation of the Fire Department, architectural upgrades of the Community Center and Phase III, the final phase of the Municipal Pier Upgrade. The City will use a variety of development generated fees (such as fire flow funds), federal Community Development Block Grant Funds , grant funds from the State Wildlife Conservation Fund and Los Angeles County Proposition A Park Bond Act funds for these projects. Cash management policies and practices. Cash temporarily idle during the year was invested in obligations of the U.S. Treasury, corporate bonds and the State Treasurer's investment pool. The average maturity was 26 months and the average yield on investments was 2.17 percent. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. Risk management. The City is self-insured up to $250,000 for liability claims. Excess coverage up to $10 million is obtained through the Independent Cities Risk Management Authority (ICRMA), a joint powers authority consisting of medium-sized California municipalities. The cost of the insurance depends on both the loss experience of member cities and- the loss experience of Hermosa Beach. The City is self-insured up to $325,000 for worker's compensation claims, with statutory limit excess coverage provided through a private insurance carrier. Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the City's Risk Manager. Additional information on the City of Hermosa Beach's risk management activity can be found in Note 8 of the notes to the financial statements. Pension and other postemployment benefits. The City of Hermosa Beach provides pension benefits to safety and non -safety employees through the California Public Employees Retirement System (Ca1PERS) Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. The City pays employee contributions as a negotiated benefit. City employer contributions are actuarially determined on an annual basis. viii • • The City of Hermosa Beach also provides postretirement heath care benefits for certain retirees. As of the end of the current fiscal year, there were 16 retirees receiving these benefits, which are financed on a pay-as-you-go basis. GAAP do not require governments to report a liability in the financial statements in connection with an employer's obligation to provide these benefits. Additional information on the City of Hermosa Beach's pension arrangements and postemployment benefits can be found in Note 9 in the notes to the financial statements. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Hermosa Beach for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2002. This was the twelfth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government has also received the CSMFO (California Society of Municipal Finance Officers Outstanding Financial Reporting Award for the past thirteen years. Due to the implementation of GASB 34 and the earlier filing deadline for the CSMFO award, the City will wait until 2003-04 to submit the report for this award. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department, with particular appreciation to Valerie Mohler, the Accounting Supervisor. We would also like to express our appreciation to the City Manager and all of the departments, including the City Clerk and City Treasurer, and to our auditors, Caporicci & Larson, for their assistance and support during this transition year. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Hermosa Beach's finances. Respectfully submitted, Viki Copeland Finance Director ix • • This page intentionally left blank. x Certificate of Achievement for Excellence in Financial' Reporting. Presented to City of Hermosa Beach, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Govermnent Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. Executive Director xi California Society 'of atunicipal Jinance Officers Certificate of Award Outstanding Financial Reporting 2001-2002 Presented to the City of Hermosa Beach This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annualfinancial statements and in the underlying accounting system from which the reports were prepared February 24, 2003 Chair, Professional & Technical Standards Committee Dedicated to Excellence in Municipal Financial Management CITY OF HERMOSA BEACH ORGANIZATIONAL CHART ELECTORATE CITY CLERK CITY COUNCIL CITY TREASURER PLANNING COMMISSION PUBLIC WORKS COMMISSION CIVIL SERVICE BOARD BOARD OF APPEALS PARKS & RECREATION ADVISORY COMMISSION CITY PROSECUTOR CITY MANAGER CITY ATTORNEY COMMUNITY RESOURCES PUBLIC WORKS Parks & Recreation/ Facilities Management Cultural/ Recreational Athletic Programming Special Events Cable T.V. Liaison ENGINEERING Plan Checks Field Inspection Code Enforcement Encroachments Capital Improvement TRANSPORTATION Traffic Eng. Traffic Signals Traffic Signage Speed Survey MAINTENANCE Landscaping Irrigation Streets Sewer Storm Drain Building Maint. Vehicle Maint. POLICE Enforcement Investigation Detention Emergency Dispatch Reserves Special Investigations Record Bureau Crossing Guard COMMUNITY SERVICES Parking Enforcement nimal Control Meter Maintenance FIRE 1 Fire Suppression Fire Prevention Rescue Public Education Paramedics Disaster Preparedness Reserves Plan Checking Ambulance Transportation X111 PERSONNEU RISK MANAGEMENT PERSONNEL Recruitment Training Labor Relations RISK MGT Workers' Comp Claims Liability Claims City Insurance Secretarial Support FINANCE Budget Accounting Payroll Citation Processing Animal Licenses Parking Permits Business License Bus Passes COMMUNITY DEVELOPMENT BUILDING AND SAFETY Plan Checking Field Inspection Code Enforcement PLANNING Current Planning Advanced Planning Environmental Assessment Conditional Use Permit (C.U.P.) Enforcement • • PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2003 Elected and Administrative Officials City Council Michael Keegan Mayor Art Yoon Mayor Pro Tempore Kathy Dunbabin Councilmember Sam Y. Edgerton Councilmember J. R. Reviczky Councilmember John Workman Elaine Doerfling Stephen Burrell Viki Copeland Sol Blumenfeld Michael Earl Michael Lavin Richard Morgan Russell Tingley Other Elected Officials Administrative Officials xiv City Treasurer City Clerk City Manager Finance Director Community Development Director Personnel Director and Risk Manager Police Chief Public Works Director Fire Chief 1 C&L Caporicci & Larson Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and City Council of the City of Hermosa Beach Hermosa Beach, California We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (City), as of and for the year ended June 30, 2003, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2003, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with generally accepted accounting principles in the United States. As described in Note 1 to the basic financial statements, the City adopted Statements of the Governmental Accounting Standards Board No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments; No. 37, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments: Omnibus; and, No. 38, Certain Financial Statement Note Disclosures. The accompanying Required Supplementary Information, such as management's discussion and analysis, budgetary comparison information and other information as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland Orange County Sacramento San Diego 180 Grand Ave., Suite 1365 31.84-D Airway Avenue 777 Campus Commons Rd., Suite 200 600 "B" Street, Suite 1900 Oakland, California 94612 Costa Mesa, California 92626 Sacramento, California 95825 San Diego, California 92101 ill To the Honorable MayCityor and ouncil of the City of Hermosa Beach Hermosa Beach, California • Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. E wa"1 " Costa Mesa, California September 25, 2003 2 • • Management's Discussion and Analysis As management of the City of Hermosa Beach, we offer readers of the City of Hermosa Beach's financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages v -ix ofthis report. Financial Highlights The assets of the City of Hermosa Beach exceeded its liabilities at the close of the most recent fiscal year by $76,566,000 (net assets). Of this amount, $15,946,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $2,895,000. Approximately 66%, or $1.9 million, of this increase is attributable to initial easement fees for a transpacific, submarine, fiber optic cable system on City -owned property. • As of June 30, 2003, the City of Hermosa Beach's governmental funds reported combined ending fund balances of $12,656,000, a decrease of $387,000 in comparison with the prior year. Approximately 10% of this amount is reserved to indicate that it is not available because it has been committed for purchase orders or contracts for the prior period and will be reappropriated. The remainder is available and has been designated for a variety of purposes. • As of June 30, 2003, the unreserved fund balance for the General Fund was $276. Funds remaining unspent in the General Fund at year end are transferred equally to the Contingency Fund, Insurance Fund; Equipment Replacement Fund and the Capital Improvement Fund. The balance in the Contingency • Fund (or "rainy day fund") is $2.9 million or 17% of General Fund appropriations and serves as the City's cushion against economic uncertainties. • The City of Hermosa Beach currently has no debt. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City Of Hermosa Beach's basic financial statements. The City Of Hermosa Beach's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Hermosa Beach's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City of Hermosa Beach's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and 3 expenses ar l reported in this statement for some items that will only sult in cash flows in future fiscal period (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Hermosa Beach that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Hermosa Beach include legislative and legal, general government, public safety, public works, community development, and culture and recreation. The business -type activities of the City of Hermosa Beach include parking and transit operations. The government -wide financial statements include not only the City of Hermosa Beach itself, but also the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue and Loma Drive Utility Underground Districts. Although these entities are legally separate, they function for all practical purposes as part of the City, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 15-19 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hermosa Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Hermosa Beach can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hermosa Beach maintains thirty-three individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the funds below, which are considered to be major funds. Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amounts for all governmental and enterprise funds for the same item. General Fund Sewer Fund Capital Improvement Fund Tyco Fund Grant Fund Contingency Fund 4 Data from the other twe seven governmental funds are coined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Hermosa Beach adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 25-32 of this report. Proprietary funds. The City of Hermosa Beach maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Hermosa Beach uses enterprise funds to account for its parking and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Hermosa Beach's various functions. The City of Hermosa Beach uses internal service funds to account for its fleet of vehicles, information systems and risk management/insurance. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Downtown Enhancement Fund and the Parking Fund, both of which are considered to be major funds of the City of Hermosa Beach. Data from the other two enterprise funds are combined into a single, aggregated presentation. Likewise, both internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 35-38 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Hermosa Beach's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Funds of the Lower Pier Avenue, Myrtle Avenue and Loma Drive Undergrounding Districts are held as fiduciary funds by the City. The basic fiduciary fund financial statements can be found on pages 41-42 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 45-74 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Hermosa Beach's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 75-81 of this report. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 85-142 of this report. 5 • • Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Hermosa Beach, assets exceeded liabilities by $76,566,000 at the close of the most recent fiscal year. By far the largest portion of the City of Hermosa Beach's net assets, $59,232,000, (77%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. (Hermosa Beach has no debt.) The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Current and Other Assets Capital Assets Total Assets Long-term Liabilities Outstanding Other Liabilities Total Liabilities Invested in Capital Assets, Net of Related Debt Restricted Unrestricted Total Net Assets Net Assets June 30, 2003 (dollars in thousands) Governmental Activities 2003 2002 $23,072 52,435 75,507 $22,868 49,705 72,573 1,904 2,731 5,478 4,546 7,382 7,277 52,435 49,705 524 709 15,166 14,882 68,125 65,296 Business -type Activities 2003 2002 $2,218 6,797 9,015 574 574 6,797 864 780 8,441 $1,976 6,895 8,871 496 496 6,895 730 750 8,375 Total 2003 2002 $25,290 59,232. 84,522 $24,844 56,600 81,444 1,904 2,731 6,052 5,042 7,956 7,773 59,232 56,600 1,388 1,439 15,946 15,632 76,566 73,671 A portion of the City of Hermosa Beach's net assets (2%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($15,946,000) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Hermosa Beach is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. There was an increase of $134,000 in restricted net assets reported in connection with the City of Hermosa Beach's business -type activities. The increase is the result of net income in the Proposition A and C Transit funds. The government's net assets increased by $2,895,000 during the current fiscal year. As mentioned earlier, approximately 66% ($1.9 million) of this increase is attributable to initial easement fees for a transpacific, submarine, fiber optic cable system on City -owned property. 6 Governmental activities. Gatnmental activities increased the Cif Hermosa Beach's net assets by $2,829,000, thereby accounting for 98% of the total growth in the net assets of the City of Hermosa Beach. Net assets increased as a result of both an increase in revenue and a reduction in expenses of 7%. Key elements of this increase are as follows: Changes in Net Assets June 30, 2003 (dollars in thousands) Governmental Business -type Activities Activities Total 2003 2002 2003 2002 2003 2002 Revenues: Program Revenues: Charges For Services $2,603 $2,220 $3,293 $3,014 $5,896 $5,234 Operating Grants and 642 596 --- 642 596 Contributions Capital Grants and Contributions 476 1,678 476 1,678 General Revenues: Property Taxes 5,282 4,730 --- -- 5,282 4,730 Other Taxes 7,675 7,731 498 464 8,173 8,195 Grants and Contributions Not Restricted to Specific Programs 3,112 1,146 --- 3,112 1,146 Other 840 1,240 106 125 946 1,365 Total Revenues 20,630 19,341 3,897 3,603 24,527 22,944 Expenses: Legislative and legal 811 824 811 824 General Government 1,101 1,685 1,101 1,685 Public Safety 9,963 9,598 9,963 9,598 Community Development 927 901 927 901 Culture and Recreation 944 901 944 901 Public Works 3,064 4,529 3,064 4,529 Depreciation 1,982 1,760 1,982 1,760 Downtown Enhancement 909 934 909 934 Parking 1,525 1,577 1,525 1,577 Proposition A Transit 303 264 303 264 Proposition C Transit 103 443 103 443 Total Expenses 18,792 20,198 2,840 3,218 21,632 23,416 Increase (Decrease) in Net Assets Before Transfers 1,838 (857) 1,057 385 2,895 (472) Transfers 991 744 (991) (744) 0 0 Increase (Decrease) in Net Assets 2,829 (113) 66 (359) 2,895 (472) Net Assets - 7/1/02 65,296 65,409 8,375 8,734 73,671 74,143 Net Assets - 6/30/03 68,125 65,296 8,441 8,375 76,566 73,671 • Property taxes increased by $552,000 or almost 12%. The largest share of the increase, 10%, is related to secured property taxes, which reflect the substantial growth in property values and turnover in ownership. Secured Taxes have risen 10% on average for the past four years. • The 17% increase in Charges to Services results primarily from higher planning and building fees related to the booming residential improvement market and new taxicab franchise fees. 7 • Expenses and Program Revenues - Governmental Activities $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 as r " '9,,"` c ' ?^a'.''Y yy � Tt s :. , it ` 4 :s • .tfAiA I r i � ASF .4 ,, `i /y . i ,• hh 44.'7%,:i 4 3 S. 7 S ' A.. ,, 'A A /Z y yrs 4 Wd�Ci A = �. A $.�v Av: w .L. / 4 . }y .. :. ! ` r ,kms jam, x f, ti 0: •'_ ..d(.� crey:. U. +j t 6 ;46 h • } `. . r• � •.R. . t i.. • ) 4 Gp a\v �ro�G G3 4 ■ Expenses • Program Revenue Revenues by Source - Governmental Activities Revenue by Source - Governmental Activities Capital Grants Operating Grants Charges for Service Miscellaneous Investment Earnings Property Tax Grants/Contribtuions not Restricted to Specific Programs Other Taxes Sales Tax Special Assessments On the expense side, salary increases ranging from 2% to 6% affect all governmental categories except Depreciation. The decrease in expenses occurs due to a decrease in liabilities for accrued compensation resulting from several long term employee retirements and because capital improvement projects for maintenance, which are included in the Public Works category, were significantly higher in 2002 than in 2003. 8 Business -type activities. Bue Y ss -type activities increased the City Hermosa Beach's net assets by $66,000, accounting for 2 percent of the total growth in the government's net assets. There were really only two contributing factors to this increase: • Charges for Services increased 9% due to higher revenue from parking fines, parking meters and parking lots. Rates were increased in the first quarter of 2001, with implementation later in the year. • Proposition C Transit expenses were lower due to completion a capital improvement project on one of the City's main streets, Hermosa Avenue. Expenses and Program Revenues - Business -type Activities $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $- Expenses and Program Revenues - Business -type Activities Downtown Parking Prop A Prop C Enhancement Transit Transit • Expenses IN Program Revenue Revenues by Source - Business -type Activities Revenue by Source - Business -type Activities Invesmtment Earnings Miscellaneous Other Taxes Charges for Services 9 Fines and Forfeitures Use of Money and Property Y, �,hyy,� ,. 74 a t. t 'f f7 n< til rv= I V. r i"f q`w4 :' nM�i 'tot « � �' *•A lft 4�y a.6 r 4I {s.� ,' 1 TO ,L" ;,tt i; s, f; t t a ? .. 1.; 6 . 4n A !`! ` .0 Downtown Parking Prop A Prop C Enhancement Transit Transit • Expenses IN Program Revenue Revenues by Source - Business -type Activities Revenue by Source - Business -type Activities Invesmtment Earnings Miscellaneous Other Taxes Charges for Services 9 Fines and Forfeitures Use of Money and Property Financial Analysis of the Government's Funds As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Hermosa Beach's governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City of Hermosa Beach's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Hermosa Beach's governmental funds reported combined ending fund balances of $12,656,000, a decrease of $387,000, in comparison with the prior year. Approximately 91 percent of this total amount ($11,515,000) constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to 1) liquidate contracts and purchase orders of the prior period ($1,138,000), and 2) fund transportation development act projects ($3,000). Six funds qualify as major funds under the GASB 34 reporting criteria: the General Fund, Tyco Fund, Grant Fund, Sewer Fund, Contingency Fund and Capital Improvement Fund. The General Fund is the chief operating fund of the City of Hermosa Beach. At the end of the current fiscal year, the total fund balance was $693,000, with $232,000 reserved for re -appropriations and $461,000 unreserved but designated for certain purposes. Financial policies in effect for 2002-03 dictate that funds left unspent in the General Fund at year end transfer equally to the Contingency Fund, the Capital Improvement Fund and the Insurance Fund. The transfer to each fund was $597,469. Key reasons funds were available at year end are as follows: • Property taxes were higher by 12%, which is offsetting the effects of a decline in sales tax due to the loss of auto dealerships. As mentioned earlier, secured property taxes have average growth of 10% per year for the last four years. • Parking fees and fines were higher, which translated to a higher transfer at year end to the General Fund. • Expenditures were 5% less than budgeted, namely due to the number of vacant positions which equates to salary and benefit savings. As the Contingency Fund serves as the City's "rainy day fund" or reserve for economic uncertainties, a goal amount has been established for the fund balance of 15% of General Fund appropriations. The balance of $2.9 million represents 17% of appropriations. General Fund Budgetary Highlights Differences between the original budget and the final amended budget were negligible for estimated revenue and appropriations. Estimated revenue increased by 1% Transfers in however, increased by 20% due the increase in parking fees and fines mentioned under business -type activities. Any unrestricted retained earnings in the Parking Fund at year end transfer automatically to the General Fund. 10 41Differences in appropriatiocher than Transfers Out equaled $6 0 or about 4%. They are briefly summarized as follows: • $98,000 in increases for legal costs in legislative/legal activities • $156,000 general government and community development software upgrades • $55,000 in increases allocated to the police department (retiring employees payoffs) $5,000 in increases allocated to the fire department $17,000 in miscellaneous increases in public works activities • $300,000 in increases for capital outlay for the City Hall remodel and Municipal Pier renovation Transfers out increased due to the year end transfer out to several funds according to adopted financial policies. Proprietary funds. The City of Hermosa Beach's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The Downtown Enhancement Fund and Parking Fund are the major funds according to GASB 34 criteria. Unrestricted net assets of the Downtown Enhancement operation at the end of the year were $730,000, and $50,000 in the Parking Fund, which is for re -appropriations. Other factors concerning the finances of these two funds have already been addressed in the discussion of the City of Hermosa Beach's business -type activities. Capital Asset and Debt Administration Capital assets. The City of Hermosa Beach's investment in capital assets for its governmental and business type activities as of June 30, 2003, amounts to $59,232,000 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, highways, and monuments. The total increase in the City of Hermosa Beach's investment in capital assets for the current fiscal year was 5 percent (a 6 percent increase for governmental activities and a 1 percent decrease for business -type activities). Major capital asset events during the current fiscal year included the following: • Construction began on the renovation of Valley Park; construction in progress as of the close of the fiscal year had reached $1,762,000. • A variety of street and sewer projects {widening and expansion projects for existing streets} began; construction in progress as of the end of the current fiscal year had reached $1,750,000. • On street parking improvements began; construction in progress as of the end of the fiscal year had reached $25,000. • Community Center improvements began; construction in progress as of the end of the fiscal year had reached $10,000. 11 City of Hermosa Beach's Capital Assets . (net of depreciation) (dollars in thousands) Governmental Activities 2003 2002 Land Buildings and structures Improvements other than buildings Machinery and equipment Vehicles Infrastructure Construction in progress Total $18,052 $18,052 2,536 712 2,956 3,151 1,220 1,651 22,497 3,523 $52,435 996 1,866 23,178 1,750 $49,705 Business -type Activities 2003 2002 • Total 2003 2002 $1,573 $ 1,573 $19,625 $19,625 5,182 5,300 7,718 6,012 0 0 2,956 3,151 17 22 1,237 1,018 1,651 1,866 - 22,497 23,178 3,548 1,750 $59,232 $56,600 25 $6,797 $6,895 Additional information on the City of Hermosa Beach's capital assets can be found in Note 6 on pages 62-64 of this report. Economic Factors and Next Year's Budgets and Rates • Property tax growth has been particularly strong for the past four years, with an average growth of 10% per year. • Up until 2001-02, sales tax growth had averaged 12% for the past five years. Loss of auto dealerships caused a decline in the ensuing years. The BMW dealership will move at least a portion of its dealership in 2004-05. • Offsetting the sales tax drop, transient occupancy taxes have almost doubled in the past five years due to added hotels and a second phase to an existing hotel. • The State's double digit deficit is of concern to all local governments since the State has a history of "raiding" or "borrowing" local funds to balance their budget. This circumstance makes budgeting an uncertainty in any year. • Also looming are increased retirement rates from Ca1PERS, the State retirement fund with which many cities contract for pension benefits. Due to investment losses sustained, rates are expected to be substantially higher for several years. All of these factors were considered in preparing the City of Hermosa Beach's budget for the 2004 fiscal year. A discussion of the factors affecting the City's financial condition may be found in the transmittal letter at the front of this report. Requests for Information This financial report is designed to provide a general overview of the City of Hermosa Beach's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 1315 Valley Drive, Hermosa Beach, CA 90254. 12 BASIC FINANCIAL STATEMENTS 13 • This page intentionally left blank 14 • • GOVERNMENT -WIDE FINANCIAL STATEMENTS 15 • This page intentionally left blank 16 City of Hermosa Beach Statement of Net Assets June 30, 2003 Primary Government Governmental Business -Type Activities Activities ASSETS Total Current assets: Cash and investments $ 20,302,243 $ 1,968,905 $ 22,271,148 Reimbursable grants receivable 665,880 665,880 Interest receivable on investments 90,071 12,814 102,885 Other accounts receivable 1,200,861 75,089 1,275,950 Notes receivable, due within a year 5,163 5,163 Property taxes receivable 621,478 621,478 Deposits 80,000 80,000 Other assets 111,854 111,854 Total current assets 23,072,387 2,061,971 25,134,358 Noncurrent assets: Notes receivable, due more than a year 156,145 156,145 Capital assets: Non -depreciable 21,575,512 1,597,787 23,173,299 Depreciable, net 30,859,310 5,199,081 36,058,391 Total capital assets 52,434,822 6,796,868 59,231,690 Total noncurrent assets 52,434,822 6,953,013 59,387,835 Total assets 75,507,209 9,014,984 84,522,193 LIABILITIES Current liabilities: Workers' compensation claims payable - within one year 325,000 325,000 General liability claims payable - within one year 250,000 250,000 Accounts payable and accrued liabilities 1,686,188 399,748 2,085,936 Accrued wages and compensated absences 1,325,739 173,388 1,499,127 Refundable deposits 382,269 610 382,879 Unearned revenue 745,136 745,136 Compensated absences, within one year 726,159 726,159 Other liabilities 3,574 3,574 Total current liabilities 5,444,065 573,746 6,017,811 Noncurrent liabilities: Workers' compensation daims payable 1,444,131 1,444,131 General liability claims payable 323,502 323,502 Compensated absences 170,383 170,383 Total noncurrent liabilities 1,938,016 1,938,016 Total liabilities 7,382,081 573,746 7,955,827 NET ASSETS Invested in capital assets, net of related debt 52,434,822 6,796,868 59,231,690 Restricted for: Capital projects 167,409 167,409 Specific projects 357,152 864,024 1,221,176 Total restricted assets 524,561 864,024 1,388,585 Unrestricted net assets (deficit) 15,165,745 780,346 15,946,091 Total net assets $ 68,125,128 $ 8,441,238 $ 76,566,366 See accompanying Notes to Basic Financial Statements. 17 City of Hermosa Beach Statement of Activities and Changes in Net Assets For the year ended June 30, 2003 • • Program Revenues Charges Operating Capital Total for Grants and Grants and Program Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: Legislative and legal $ 810,589 $ - General government 1,100,565 $ 89,037 $ 22,074 111,111 Public safety 9,962,500 833,755 220,536 $ 33,766 1,088,057 Community development 927,174 768,241 356 12,321 780,918 Culture and recreation 944,267 708,296 708,296 Public works 3,063,912 203,533 399,248 429,846 1,032,627 Depredation (unallocated) 1,981,825 Total governmental activities 18,790,831 2,602,862 642,214 475,933 3,721,009 Business -type activities: Downtown Enhancement 909,137 774,865 774,865 Parking 1,525,371 2,503,330 2,503,330 Proposition "A" Transit 302907 14,381 14,381 Proposition "C" Transit 103,091 Total business -type activities 2,840,506 3,292,576 774,865 Total primary government $ 21,631,337 $ 5,895,438 $ 642,214 $ 475,933 $ 4,495,874 See accompanying Notes to Basic Financial Statements. General Revenues: Taxes: Property taxes Sale taxes Special assessments Other Total taxes Grants and contributions not restricted to specific programs Investment earnings Miscellaneous Gain (loss) on sale of fixed assets Transfers Total general revenues and transfers Change in net assets Net assets - beginning of year, as restated (Note 13) Net assets - end of year 18 • • Net (Expense) Revenue and Changes in Net Assets Governmental Business -type Activities Activities Total $ (810,589) $ (810,589) (989,454) (989,454) (8,874,443) (8,874,443) (146,256) (146,256) (235,971) (235,971) (2,031,285) (2,031,285) (1,981,825) (1,981,825) (15,069,822) $ (15,069,822) (134,272) (134,272) 977,959 977,959 (288,526) (288,526) (103,091) (103,091) 452,070 452,070 (15,069,822) 452,070 (14,617,752) 5,282,147 5,282,147 2,508,346 2,508,346 454,790 454,790 4,711,422 498,276 5,209,698 12,956,705 498,276 13,454,981 3,111,569 3,111,569 439,050 96,117 535,167 425,201 10,812 436,013 (24,543) (24,543) 990,593 (990,593) 17,898,575 (385,388) 17,513,187 2,828,753 66,682 2,895,435 65,296,375 8,374,556 73,670,931 $ 68,125,128 $ 8,441,238 $ 76,566,366 1 • • This page intentionally left blank. • FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 21 • This page intentionally left blank. 22 • GOVERNMENTAL FUND FINANCIAL STATEMENTS 23 This page intentionally left blank 24 • • GOVERNMENTAL FUND FINANCIAL STATEMENTS Governmental Funds of the City are outlined below: The General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works. Tyco Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity. Grants Fund Special Revenue Fund - This fund is used to account for State and Federal grants for specific projects. Sewer Fund Special Revenue Fund - This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Contingency Special Revenue Fund - "Rainy day" funds set aside for unforeseen emergencies, unexpected economic events, etc. City Council adopted goal is 15% of appropriations. Capital Improvement Special Revenue Fund - Funds set aside for Capital Improvement Projects. Other Governmental Funds - Other Governmental Funds is the aggregate of all the non -major governmental funds. 25 City of Hermosa Beach Balance Sheet Governmental Funds June 30, 2003 • • ASSETS Major Funds General Capital Tyco Grants Sewer Contingency Improvement Special Special Special Special Special Revenue Revenue Revenue Revenue Revenue Cash and investments (Note 2) $ 1,575,563 $ 1,901,339 $ 2,384,949 $ 2,927,875 $ 2,425,118 Reimbursable grants receivable $ 550,449 Interest receivable on investments 19,560 11,667 18,684 14,305 11,114 Other accounts receivable 1,114,629 3,382 Property taxes receivable 611,853 Due from other funds (Note 5) 677,513 , 108,000 Other assets 101,398 Total assets and other debits $ 3,423,003 $ 1,913,006 $ 550,449 $ 3,084,528 $ 2,942,180 $ 2,544,232 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities $ 405,256 $ 4,825 $ 11,053 $ 884,537 $ 126,996 Accrued wages and compensated absences 1,203,577 26,415 3,348 Due to other funds (Note 5) 528,732 Refundable deposits 382,269 Deferred revenue 735,511 Other liabilities 3,574 Total liabilities 2,730,187 4,825 539,785 910,952 $ - 130,344 Fund Balances: Reserved for: Re -appropriations 231,701 5,400 603,683 160,438 Bike paths Strand walkways Beverage Recycling Grant 6,102 State Homeland Security Grant 4,562 Unreserved, designated for: Trash containers 3,900 Teen Program Donation/Mervyn's 10,000 Affordable housing 111,831 Community Res. Special Events 4,108 Pier phase III 331,000 Justice and treasury department Unreserved, undesignated 276 1,902,781 1,569,893 2,942,180 2,253,450 Total fund balances 692,816 1,908,181 10,664 2,173,576 2,942,180 2,413,888 Total liabilities and fund balances $ 3,423,003 $ 1,913,006 $ 550,449 $ 3,084,528 $ 2,942,180 $ 2,544,232 See accompanying Notes to Basic Financial Statements. 26 • • Other Governmental Funds Total $ 2,759,158 $ 13,974,002 115,431 665,880 14,741 90,071 76,100 1,194,111 9,625 621,478 785,513 101,398 $ 2,975,055 $ 17,432,453 $ 163,284 $ 1,595,951 30,522 1,263,862 256,781 785,513 382,269 9,625 745,136 3,574 460,212 4,776,305 126,031 1,127,253 655 655 2,935 2,935 6,102 4,562 3,900 10,000 111,831 4,108 331,000 20,289 20,289 2,364,933 11,033,513 2,514,843 12,656,148 $ 2,975,055 $ 17,432,453 • • This page intentionally left blank City of Hermosa Beach Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2003 Total Fund Balances - Total Governmental Funds $ 12,656,148 Amounts reported for governmental activities in the Statement of Net Assets were reported differently because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the Internal Service Funds reported below, the capital assets were adjusted as Governmental Internal Service follow: Funds Funds Non -depreciable $ 21,199,818 $ 375,694 21,575,512 Depreciable, net 28,807,798 2,051,512 30,859,310 Total capital assets Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in governmental activities in the Government -Wide Statement of Net Assets. Insurance Fund $ 50,007,616 $ 2,427,206 52,434,822 4,086,575 Equipment Replacement Fund 2,186,758 Total internal service funds 6,273,333 Long-term liabilities were not due and payable in the current period. Therefore, they Governmental Internal Service were not reported in the Governmental Funds Balance Sheet. Funds Funds Long-term liabilities - due within one year Long-term liabilities - due in more than one year Compensated absences payable Total long-term liabilities $ (575,000) (575,000) (1,767,633) (1,767,633) $ (896,542) (896,542) $ (896,542) $ (2,342,633) (3,239,175) Net Assets of Governmental Activities $ 68,125,128 See accompanying Notes to Basic Financial Statements. 29 City of Hermosa Beach Statement of ,Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the year ended June 30, 2003 • • REVENUES: Major Funds General Capital Tyco Grants Sewer Contingency Improvement Special Special Special Special Special Revenue Revenue Revenue Revenue Revenue Property taxes $ 5,282,147 Other taxes 7,219,767 • Licenses and permits 571,682 Fines and forfeitures 276,786 Use of money and property 285,382 $ 1,900,000 Intergovernmental 1,195,416 $ 372,098 $ 11,841 Charges for services 1,165,490 30,773 Miscellaneous 434,362 4,390 958 $ 3,670 Interest earned on investments 80,558 41,281 106,211 $ 72,624 60,039 Total revenues EXPENDITURES: 16,511,590 1,941,281 376,488 149,783 72,624 63,709 Current: Legislative and legal 832,157 General government 1,196,193 Public safety 9,916,705 4,390 Community development 939,179 356 Culture and recreation 966,621 Public works 1,967,115 7,168 535,236 Capital outlay 202,142 33,100 356,362 1,661,132 788,724 Total expenditures 16,020,112 33,100 368,276 2,196,368 788,724 REVENUES OVER (UNDER) EXPENDITURES 491,478 1,908,181 8,212 (2,046,585) 72,624 (725,015) i OTHER FINANCING SOURCES (USES): Transfers in 1,583,299 700,000 597,469 1,077,595 Transfers out (2,902,107) (87) Total other financing sources (uses) (1,318,808) (87) 700,000 597,469 1,077,595 Net change in fund balances (827,330) 1,908,181 8,125 (1,346,585) 670,093 352,580 FUND BALANCES: Beginning of year, as restated (Note 13) 1,520,146 2,539 3,520,161 2,272,087 2,061,308 End of year $ 692,816 $ 1,908,181 $ 10,664 $ 2,173,576 $ 2,942,180 $ 2,413,888 See accompanying Notes to Basic Financial Statements. 30 • • Other Governmental Funds Total $ 454,790 $ 5,736,937 103,500 7,323,267 571,682 1,548 278,334 2,185,382 596,577 2,175,932 58,654 1,254,917 201,955 645,335 89,403 450,116 1,506,427 20,621,902 '832,157 49,113 1,245,306 119,523 10,040,618 12,321 951,856 966,621 572,577 3,082,096 1,239,684 4,281,144 1,993,218 21,399,798 (486,791) (777,896) 57,699 4,016,062 (723,474) (3,625,668) (665,775) 390,394 (1,152,566) (387,502) 3,667,409 13,043,650 $ 2,514,843 $ 12,656,148 City of Hermosa Beach Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2003 • • Net Change in Fund Balances - Total Governmental Funds Governmental Activities in the Statement of Activities were reported differently because: Governmental Funds report capital outlay as expenditures. However, in the Government -Wide Statement of Activities and Changes in Net Assets, the cost of those assets is allocated over their estimated useful lives as depredation expense. This is the amount of capital assets recorded in the current period. Depreciation expense on capital assets is reported in the Government -Wide Statement of Activities and Changes in Net Assets, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in governmental funds. $ (387,502) 4,293,285 (1,450,013) The net effect of sale involving various capital assets is to decrease net assets. (43,500) Long-term compensated absences were reported in the Government -Wide Statement of Activities and Changes in Net Assets, but they did not require the use of current financial resources. Therefore, long-term compensated absences were not reported as expenditures in governmental funds. Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. Change in Net Assets of Governmental Activities See accompanying Notes to Basic Financial Statements. 32 96,146 320,337 $ 2,828,753 • • PROPRIETARY FUND FINANCIAL STATEMENTS 33 • 1 This page intentionally left blank. • • PROPRIETARY FUND FINANCIAL STATEMENTS Downtown Enhancement Fund - All parking lot revenues are deposited to the Downtown Enhancement Fund in order to promote business in general and improve the appearance of the downtown area. Parking Fund - All meter, fine and parking permit revenues are deposited to the Parking Fund in order to finance parking operations and capital improvements. Other Enterprise Funds - Other Enterprise Funds is the aggregate of all the non -major proprietary funds. 35 City of Hermosa Beach Statement of Net Assets Proprietary Funds For the Year Ended June 30, 2003 • • Governmental Major Enterprise Funds Other Total Activities Downtown Enterprise Enterprise Internal Enhancement Parking Funds Funds Service Funds ASSETS Current assets: Cash and investments $ 798,069 $ 297,607 $ 873,229 $ 1,968,905 $ 6,328,241 Interest receivable on investments 4,869 2,617 5,328 12,814 Other accounts receivable 9,437 16,215 49,437 75,089 6,750 Notes receivable, due within a year 5,163 5,163 Deposits 80,000 Other assets 10,456 Total current assets 817,538 316,439 927,994 2,061,971 6,425,447 Noncurrent assets: Notes receivable, due in more than a year 156,145 156,145 Property and equipment, net of accumulated depreciation 6,605,325 191,543 6,796,868 2,427,206 Total assets 7,579,008 507,982 927,994 9,014,984 8,852,653 LIABILITIES Current liabilities: Current portion of long-term liabilities Accounts payable Accrued wages and compensated absences Refundable deposit 236,502 6,977 100,895 164,792 610 62,351 1,619 575,000 399,748 90,237 173,388 61,877 610 Total current liabilities 243,479 266,297 63,970 573,746 727,114 Long-teint liabilities: Workers' compensation claims payable 1,769,131 General liability claims payable 573,502 Less current portion above (575,000) Total long-term liabilities - 1,767,633 Total liabilities NET ASSETS 243,479 266,297 63,970 573,746 2,494,747 Investment in capital assets, net of related debt 6,605,325 191,543 6,796,868 2,427,206 Restricted for special projects 864,024 864,024 Unrestricted 730,204 50,142 780,346 3,930,700 Total net assets $ 7,335,529 $ 241,685 $ 864,024 $ 8,441,238 $ 6,357,906 See accompanying Notes to Basic Financial Statements 36 City of Hermosa Beach Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds For the year ended June 30, 2003 Governmental Major Enterprise Funds Other Total Activities Downtown Enterprise Enterprise Internal Enhancement Parking Funds Funds Service Funds OPERATING REVENUES: Other taxes $ 498,276 $ 498,276 Fines and forfeitures $ 1,099,447 1,099,447 Use of money and property $ 37,529 37,529 Charges for services 774,865 1,403,883 14,381 2,193,129 $ 2,334,658 Miscellaneous 9,901 205 706 10,812 5,180 Total operating revenues OPERATING EXPENSES: 822,295 2,503,535 513,363 3,839,193 2,339,838 Salaries and wages 40,742 1,121,427 31,676 1,193,845 343,835 Contractor services 661,156 71,475 374,133 1,106,764 563,776 Supplies 89,581 327,060 189 416,830 157,999 Claims expense - 1,072867 Depreciation 117,658 5,409 123,067 531,812 Total operating expenses 909,137 1,525,371 405,998 2,840,506 2,670,289 OPERATING INCOME (LOSS) (86,842) 978,164 107,365 998,687 (330,451) NONOPERATING REVENUES (EXPENSES): Interest earned on investments 21,837 9,737 27,014 58,588 Proceeds on sale of assets 18,957 Total nonoperating revenues (expenses) 21,837 9,737 27,014 58,588 18,957 INCOME (LOSS) BEFORE TRANSFERS (65,005) 987,901 134,379 1,057,275 (311,494) TRANSFERS: Contributions of capital assets from government - 31,632 Transfers in 1,350 1,350 657,616 Transfers out (4,834) (987,109) (991,943) (57,417) Total operating transfers (4,834) (985,759) (990,593) 631,831 Changes in net assets (69,839) 2,142 134,379 66,682 320,337 NET ASSETS: Beginning of the year 7,405,368 239,543 729,645 8,374,556 6,037,569 End of the year $ 7,335,529 $ 241,685 $ 864,024 $ 8,441,238 $ 6,357,906 See accompanying Notes to Basic Financial Statements. 37 • City of Hermosa Beach Statement of Cash Flows Proprietary Funds For the year ended June 30, 2003 Governmental Major Enterprise Funds Other Total Activities Downtown Enterprise Enterprise Internal Enhancement Parking Funds Funds Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers/other funds $ 822,571 $ 2,506,800 $ 506,323 $ 3,835,694 $ 2,331,945 Cash payments to suppliers for goods and services (699,900) (354,275) (404,618) (1,458,793) (760,524) Cash payments to employees for services (41,450) (1,108,799) (31,649) (1,181,898) (347,449) Insurance premiums and settlements - (1,043,445) Other operating revenues 9,901 205 706 10,812 5,180 Net cash provided by (used for) operating activities 91,122 1,043,931 70,762 1,205,815 185,707 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 1,350 1,350 657,616 Transfers out (4,834) (987,109) (991,943) (57,417) Net cash provided by (used for) noncapital financing activities CASH FLOWS CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds on sale of capital assets Acquisition of capital assets (4,834) (985,759) - (990,593) 600,199 (25,047) 18,957 (25,047) (430,367) Net cash provided by (used for) capital and related financing activities (25,047) (25,047) (411,410) CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments 21,837 9,737 27,014 58,588 Net cash provided (used) by investing activities 21,837 9,737 27,014 58,588 Net increase (decrease) in cash and cash equivalents 83,078 67,909 97,776 248,763 374,496 CASH AND CASH EQUIVALENTS: Beginning of year 714,991 229,698 775,453 1,720,142 5,953,745 Ending of year $ 798,069 $ 297,607 $ 873,229 $ 1,968,905 $ 6,328,241 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ (86,842) $ 978,164 $ 107,365 $ 998,687 $ (330,451) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depredation 117,658 5,409 123,067 531,812 Changes in operating assets and liabilities: Interest receivable on investments 2,447 1,325 2,401 6,173 Other accounts receivable 2,908 1,535 (8,735) (4,292) (731) Notes receivable 4,822 4,822 Other assets - (1,982) Worker's compensation claims payable (211,698) General liability claims payable - 241,120 Accounts payable 50,837 44,260 (30,296) 64,801 (38,749) Accrued wages and compensated absences (708) 12,628 27 11,947 (3,614) Refundable deposits 610 610 Total adjustments 177,964 65,767 (36,603) 207,128 516,158 Net cash provided (used) by operating activities $ 91,122 $ 1,043,931 $ 70,762 $ 1,205,815 $ 185,707 See accompanying Notes to Basic Financial Statements. 38 • • FIDUCIARY FUND FINANCIAL STATEMENTS 39 This page intentionally left blank. 40 • • FIDUCIARY FUND FINANCIAL STATEMENTS Agency Fund are used to account for assets held by the City in the capacity of agent for individuals. Agency Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. 41 • City of Hermosa Beach Statement of Fiduciary Net Assets Agency Funds June 30, 2003 ASSETS Cash and investments Interest receivable Other accounts receivable Total assets LIABILITIES Assessment Installment account Total Liabilities See accompanying Notes to Basic Financial Statements. 42 Agency Funds $ 224,954 1,376 5,476 $ 231,806 $ 231,806 $ 231,806 City of Hermosa Bead Index to Notes to Basic Financial Statements For the year ended June 30, 2003 Page Note 1- Summary of Significant Accounting Policies Financial Reporting Entity 45 Basis of Accounting and Measurement Focus 46 Use of Restricted/ Unrestricted Net Assets 48 Cash and Investments 49 Property Taxes Receivables 49 Prepaid Items 49 Interfund Transactions 49 Capital Assets 50 Claims Payable 51 Compensated Absences 51 Deferred Referred 51 Long -Term Debt 51 Net Assets 52 Fund Balance -Reservation and Designations 52 Use of Estimates 52 Implementation of New GASB Pronouncements 53 Note 2 - Cash and Investments Cash Deposits 53 Investments 54 Credit Risk 55 Summary of Cash and Investments 56 Summary of Investments to Maturity 56 Note 3 - Receivables Accounts 57 Property Taxes 58 Interest Receivable 58 Reimbursable Grant Receivable 59 Notes Receivable 59 Note 4 - Lease Revenue 60 Note 5 - Interfund Transactions Government -Wide Financial Statements 61 Fund Financial Statements 61 43 City of Hermosa Beach Index to Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 Page Note 6 - Capital Assets Government -Wide Financial Statements 62 Fund Financial Statements 64 Note 7 - Long -Term Debt Long -Term Debt with City Commitment 65 Long -Term Debt without City Commitment 65 Note 8 - Other Required Fund Disclosures Deficit Fund Balance 67 Excess of Expenditures Over Appropriations 67 Note 9 - Risk Management 67 Note 10 - Retirement Plans Public Employee Retirement System 69 Other Post -Employment Benefits 71 Note 11- Commitments and Contingencies Commitments 73 Contingencies 73 Note 12 - Subsequent Events 74 Note 13 - Prior Period Adjustments Government -Wide Financial Statements 74 Fund Financial Statements 75 City of Hermosa Beal, Notes to Basic Financial Statements For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Hermosa Beach, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's , accounting policies are described below. A. Financial Reporting Entity The City of Hermosa Beach was incorporated on January 14, 1907, under the general laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: public safety (police, crossing guards and fire), maintenance and construction of public improvements, cultural, recreation, community development (planning and zoning), and general administrative services. As required by GAAP, the basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the combined basic financial statements to emphasize their legal separateness from the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units: Hermosa Beach Street Lighting and Landscaping District This fund is used to account for the Lighting and Landscaping Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679. Lower Pier Avenue Assessment District Improvement Fund This fund is used to account for the funds of the assessment district, which was created pursuant to Street and Highway Code 10000 for improvements in the downtown Pier Plaza. Myrtle Underground Utility District Improvement Fund This fund is used to account for the funds of the electric underground assessment district, which was created pursuant to Street and Highway Code 10000. J Loma Underground Utility District Improvement Fund This fund is used to account for the funds of the electric underground assessment district, which was created pursuant to Street and Highway Code 10000. 45 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Government - Wide Financial Statements These statements are presented for the first time as required by GASB Statement No. 34. The City Government -Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of Governmental and Business -Type Activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements. The basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business - type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated because their expenses are reported a second time as expenditures/expenses in the funds that are billed for the goods or services they provide. However, transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: • Due to/from other funds - short-term loans within the primary government • Advances to/from other funds - long-term loans within the primary government • Operating transfers in/ out - flows of assets between funds without the requirement for repayment The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect) as well as the following pronouncements issued on or before November 30, 1989, to the business -type activities, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements. 46 City of Hermosa Bea. Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements These statements are presented for the first time as required by GASB Statement No. 34. Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the government -wide financial statements. Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amounts for all governmental and enterprise funds for the same item. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current -liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in 'Fund Balances present increase (revenue and other financing sources) and decrease (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34 and is located after the governmental funds balance sheet in the fund financial statements. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues, Expenses and Changes in Fm -id Net Assets, and a Statement of Cash Flows for each major proprietary fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. 47 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • { • 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts if applicable. In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Assets. The City's Fiduciary funds represent Agency Funds, which are custodial in nature (asset equal liabilities) and do not involve measurement of results of operations. The Agency funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting as are the governmental funds explained above. Fiduciary fund types are accounted for according to the nature of the fund. For the City of Hermosa Beach, funds held as fiduciary funds represent assets and liabilities of electric undergrounding districts and a downtown improvement district. C. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. D. Cash and Investments The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City's intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on ending accounting period cash and investment balances. 48 City of Hermosa Bead Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Cash and Investments, Continued The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less at the time of acquisition. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in Structured Notes and Asset -Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed Securities are subject to market risk as a result of changes in interest rates. E. Property Tax Receivable Property taxes attach as an enforceable lien on property as of July 1 each year. Taxes are levied on January 1 and are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (County) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized when received in cash except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes available taxes or those collected within 60 days as revenue at June 30. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed valuation no more than 2% per year. The City receives a share of this basic levy, proportionate to what it received during the years 1976 to 1978. F. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. G. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans)." Any residual balances outstanding between the governmental activities and business -type activities are reported in the governmental -wide financial statements as "internal balances." 49 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Capital Assets Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business -type activities in the Government -Wide Financial Statements. Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated fixed assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $1,000 and infrastructure at $100,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 50 years Improvements other than buildings 20 years Machinery and equipment 3-20 years Infrastructure 15-50 years In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with GASB Statement No. 34, the City has included all infrastructures as of June 30, 2003 into the 2002-03 Basic Financial Statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewers and storm drains, and monuments. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business -type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2003. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry- accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. 50 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Claims Payable I. The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities. Compensated Absences City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and a portion of sick pay when an employee retires or terminates. This amount is included as a liability in the governmental activities of the Government -Wide financial statements. As mentioned under "Financial Policies," the City goal is to accumulate funding in the Compensated Absences Fund for 50% of the accrued liability for compensated absences. K Deferred Revenue In the Government -Wide Financial Statements, deferred revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as deferred revenues in the Government -Wide Financial Statements are long-term loans receivable and prepaid charges for services. In the Fund Financial Statements, deferred revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records deferred revenue for transactions for which revenues have not been earned, or for which funds are not available to meet current financial obligations. Typical transactions for which deferred revenue is recorded are grants received but not yet earned or available. L. Long -Term Debt Government -Wide Financial Statements The City has no long-term debt. Other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 51 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Long -Term Debt, Continued Fund Financial Statements The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets located after the governmental funds balance sheet in the fund financial statements. Bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures. The City has issued no bonds applicable to the above. M. Net Assets Government -Wide Financial Statements In the government -wide financial statements, net assets are reported in one of three categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets - This amount represents remaining net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." N. Fund Balances - Reservations and Designations In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. O. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. 52 City of Hermosa Bea" Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Implementation of New GASB Pronouncements In the fiscal year 2003, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements: ➢ Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments ➢ Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments: Omnibus ➢ Statement No. 38, Certain Financial Statement Note Disclosures GASB Statement No. 34 is a new financial reporting requirement for State and Local Governments in the United States. The City has implemented this pronouncement and has restructured much of the information that it has presented in the past. The main goal according to GASB Statement No. 34, is to make the reports more comprehensive and easier to understand and use. GASB Statement No. 37 addresses selected issues and amends GASB Statements No. 21, Accounting for Escheat Property, and No. 34, Basic Financial Statement and Management's Discussion and Analysis for State and Local Governments. These Statements make selective changes including accounting for Escheat Property, Management's Discussion and Analysis, Capitalization of Construction Period Interest, Modified Approach for Reporting Infrastructure, Program Revenues and Major Fund Criteria. GASB Statement No. 38 establishes and modifies disclosure requirements related to Summary of Significant Accounting Policies, actions taken to address violations of significant finance -related legal and contractual provisions, debt and lease obligations, short-term debt, disaggregation of receivable and payable balances, and interfund balances and transfers. 2. CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The pooled interest earned is allocated to the fund based on cash and investment balances in these funds at the end of each accounting period. A. Cash Deposits The carrying amounts of the City's cash deposits were $262,667 at June 30, 2003. Bank balances at June 30, 2003, were $550,502 which were fully insured and collateralised with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. 53 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 2. CASH AND INVESTMENTS, Continued A. Cash Deposits, Continued The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest is not allocated to the Compensated Absences Fund, funds created to advance costs for various projects, reimbursable grant funds or internal service funds. Interest income from cash and investments with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's investment policy, and in accordance with California Government Code, the investments below were authorized. The City's policy is more restrictive than the State's by design. ➢ Securities of the U.S. Government, or its agencies ➢ Banker's acceptances ➢ Time Certificates of Deposits ➢ Negotiable certificates of Deposit ➢ California Local Agency Investment Fund ➢ Corporate Medium -Term Notes The City's investments with the Local Agency Investment Fund (LAIF), a State of California investment pool, at June 30, 2003, included a portion of the pool funds invested in Structured Notes and Asset - Backed Securities. These investments included the following: Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. As of June 30, 2003, the City had $20,681,244 invested in LAIF, which had invested 2.327% of the pool investment funds in Structured Notes and Asset -Backed Securities. The City valued its investments in LAIF as of June 30, 2003, by multiplying its account balance with LAIF by a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total aggregate fair value by total aggregate amortized cost resulting in a factor of 1.002846280. 54 • • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 2. CASH AND INVESTMENTS, Continued B. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, requires that the City's investments be carried at fair market value instead of cost. Accordingly, the City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end and the effects of these adjustments are included in income for that fiscal year. Changes in value in the fiscal year ended June 30, 2003, amounted to an unrealized increase of $1,059. C. Credit Risk Governmental Accounting Standards Board Statement No. 3 requires that deposits and investments be classified by credit risk. Classification of deposits and investments by credit risk: Deposits Category 1 - Insured or collateralized with 'securities held by the entity or by its agent in the entity's name. Category 2 - Collaterali7ed with securities held by the pledging financial institution's trust department or agent in the entity's name. Category 3 - Deposits which are uninsured or uncollateralized. Investments Category 1- Insured or registered or securities held by the entity or its agent in the entity's name. Category 2 - Uninsured and unregistered with securities held by the counterparty's trust department or agent in the entity's name. Category 3 - Uninsured and unregistered with securities held by the counterparty, or by its trust department or agent, but not in the entity's name. Investments Not Subject to Categorization - Investments in the California Local Agency Investment Fund (LAIF) are not categorized, as GASB. Statement No. 3 does not require categorization of investment pools managed by another government. Certain fiscal agent investments, if applicable, are not categorized because the underlying assets are open-ended mutual funds. Guaranteed investment contracts, if applicable, are not categorized because they are direct contractual investments and are not securities. All such investments are not required to be categorized under interpretive guidelines issued by the GASB. 55 • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 2. CASH AND INVESTMENTS, Continued D. Summary of Cash and Investments The following is a summary of cash and investment at June 30, 2003: Government -Wide Statement of Net Assets Funds Financial Governmental Business -Type Activities Activities Total Fiduciary Funds Statement of Net Assets Total Cash and Investments $ 20,302,243 $ 1,968,905 $ 22,271,148 $ 224,954 $ 22,496,102 Cash (deposits) and investments were categorized as follows at June 30, 2003: City Treasury: Cash deposits: Demand accounts Less items in transit Category 1 2 Uncategorized Fair Value $ 113,000 $ 437,502 $ 550,502 (287,835) Total cash deposits 113,000 437,502 $ - 262,667 Investments: Local Agency Investment Fund 20,681,244 20,681,244 U.S. government notes 1,552,191 1,552,191 Total investments 1,552,191 20,681,244 22,233,435 Total cash and investments $ 1,665,191 $ 437,502 $ 20,681,244 $ 22,496,102 At June 30, 2003, the City had no category 3 investments. E. Summary of Investments to Maturity Investments held in the City Treasury grouped by maturity date at June 30, 2003, are shown below: Maturity Fair Value Current to one year $ 21,714,994 One to two years 518,441 Total $ 22,233,435 56 City of Hermosa Bea" Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 3. RECEIVABLES Government -Wide Financial Statements At June 30, 2003, the Government -Wide Financial Statements show the following miscellaneous receivables net of allowances for uncollectible amounts if any: Government -Wide Statement of Net Assets Funds Financial Governmental Business -Type Activities Activities Total Fiduciary Funds Statement of Net Assets Total Accounts $ 1,200,861 $ 75,089 $ 1,275,950 $ 5,476 $ 1,281,426 Taxes 621,478 621,478 621,478 Interest 90,071 12,814 102,885 1,376 104,261 Grants 665,880 665,880 665,880 Notes 161,308 161,308 161,308 Total $ 2,578,290 $ 249,211 $ 2,827,501 $ 6,852 $ 2,834,353 Governmental Activities accounts receivables includes the Internal Service Funds amount of $6,750. Fund Financial Statements At June 30, 2003, the Fund Financial Statements show the following receivables: A. Accounts Receivable Accounts receivable consisted of amounts accrued in the ordinary course of operations. The total amount of accounts receivable for each major and non -major fund in the aggregate as of June 30, 2003, were as follows: Governmental Funds: General Fund $ 1,114,629 Sewer Fund 3,382 Non -Major Funds 76,100 Total governmental funds 1,194,111 Proprietary Funds: Downtown Enhancement Fund 9,437 Parking Fund 16,215 Non -Major Funds 49,437 Internal Service Funds 6,750 Total proprietary funds 81,839 Total $ 1,275,950 57 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 3. RECEIVABLES, Continued Fund Financial Statements, Continued B. Property Taxes Receivable At June 30, 2003, the City had taxes receivable in the following major funds and non -major funds in the aggregate: Property Taxes Governmental Funds: General Fund $ 611,853 Non -major Funds 9,625 Total $ 621,478 C. Interest Receivable Interest receivable consists of interest from investments pooled by the City, which is distributed among the funds according to their ending cash balances at the end of the accounting period, and interest receivable on restricted investments held by the fiscal agents which are recorded in the funds holding the investment. The interest receivable as of June 30, 2003, was as follows: City Pooled Investments Governmental Funds: General Fund $ 19,560 Sewer Fund 18,684 Contingency Fund 14,305 Capital Improvement Fund 11,114 Non -major Funds 26,408 Total governmental funds 90,071 Proprietary Funds: Downtown Enhancement Fund 4,869 Parking Fund 2,617 Non -major Enterprise Funds 5,328 Total proprietary funds 12,814 Total 102,885 Agency Funds 1,376 Total interest receivable $ 104,261 58 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 3. RECEIVABLES, Continued Fund Financial Statements, Continued D. Reimbursable Grants Receivable Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants for each major and non -major fund in the aggregate as of June 30, 2003 were as follows: Governmental Funds: Grants Fund $ 550,449 Non -major Funds 115,431 Total governmental funds $ 665,880 E. Notes Receivable In April 1995, the City entered into an agreement with the South Bay Alano Club for the purchase of a building and property owned by the City. The note in the amount of $200,000, which is secured by a deed of trust, specified a 10 year term with an interest rate of 10% per annum. The final payment of unpaid principal and monthly accrued interest is due in May 2005. The outstanding principal at June 30, 2003 is $161,308. 59 • • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 4. LEASE REVENUES The City leases a portion of the Hermosa Beach Community Center to nonprofit and cultural organizations. In January 2001, a 50 year lease for the retail space located in front of the North Pier Parking Structure was initiated. The City receives a monthly lease payment in the amount of $1,750. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on the consumer price index. The first increase is due in January 2006. These leases are accounted for as operating leases by the City. The future minimum rental revenues under these leases are as follows: Years Ending June 30, Total 2004 $ 39,375 2005 21,003 2006 21,000 2007 21,000 2008 21,000 2009-2014 105,000 2015-2019 105,000 2020-2024 105,000 2025-2029 105,000 2030-2034 105,000 2035-2039 105,000 2040-2044 105,000 2045-2049 105,000 2050-2054 105,000 Total $ 1,068,378 Lease revenue for fiscal year 2003 was $85,526 with $64,526 reflected in the General Fund and $21,000 in the Downtown Enhancement Fund, an enterprise fund. On January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure. The City's Downtown Enhancement Fund and Prop A Open Space funding' contributed by the Los Angeles County Department of Beaches and Harbors, provided additional funding. In consideration of the contribution, 50% of the annual net income derived from the parking structure must be paid to the County each year by September 30. The payment to the County for fiscal year 2002-2003 is $168,572. 60 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 5. INTERFUND TRANSACTIONS A. Government -Wide Financial Statements Transfers At June 30, 2003, the City had the following operating transfers: B. Fund Financial Statements Governmental Activities Total Transfers Out Business -Type Activities $ 990,593 $ 990,593 The composition of due to/from other funds as June 30, 2003 is as follows: 8 A Transfers In/Out Sewer Fund Capital Improvement Fund Due to Other Funds Non -major Grant Governmental Fund Funds Total $ 528,732 $ 148,781 $ 677,513 108,000 108,000 Total $ 528,732 $ 256,781 $ 785,513 At June 30, 2003, the City had the following operating transfers: ar- General Sewer Fund Contingency Fund Capital Improvement Fund Non -Major Governmental Funds Parking Fund Internal Service Fund Transfers Out Non -Major Downtown Internal Grant Governmental Enhancement Parking Service General Fund Funds Fund Fund Fund Total $ 700,000 $ 535,289 $ 4,834 $ 987,109 $ 56,067 597,469 997,469 607,169 $ 87 80,039 57,699 50,447 $ 2,283,299 597,469 997,469 80,126 57,699 1,350 1,350 657,616 $ 2,902,107 $ 87 $ 723,474 $ 4,834 $ 987,109 $ 57,417 $ 4,675,028 61 • • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 6. CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government -Wide Statement of Net Assets. The City elected to use the "Basic Approach" as defined by GASB Statement No. 34 for infrastructure reporting. All capital and infrastructure systems were reported using the basic approach whereby accumulated depreciation and depreciation expense have been recorded. A. Government -Wide Financial Statements At June 30, 2003, the City's capital assets consisted of the following: Government Business -Type Activities Activities Total Capital Assets: Non -Depreciable Assets: Land $ 18,052495 $ 1,572,740 $ • 19,625,235 Construction in progress 3,523,017 25,047 3,548,064 Total non -depreciable assets 21,575,512 1,597,787 23,173,299 Depreciable Assets: Buildings and structures 3,906,022 5,558,605 9,464,627 Improvements other than buildings 5,004,018 13,141 5,017,159 Machinery and equipment 2,529,642 50,336 2,579,978 Vehicles 2,765,500 2,765,500 Infrastructure 34,822,539 34,822,539 Total depreciable assets 49,027,721 5,622,082 54,649,803 Less accumulated depredation for: Buildings and structures (1,370,480) (376,486) (1,746,966) Improvements other than Buildings (2,048,250) (13,141) (2,061,391) Machinery and equipment (1,309,260) (33,374) (1,342,634) Vehicles (1,114,858) (1,114,858) Infrastructure (12,325,563) (12,325,563) Total accumulated depredation (18,168,411) (423,001) (18,591,412) Total depreciable assets, net 30,859,310 5,199,081 36,058,391 Total capital assets $ 52,434,822 $ 6,796,868 $ 59,231,690 62 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 6. CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued The following is a summary of capital assets for governmental activities for the year ended June 30, 2003: Balance Balance July 1, 2002 Additions Deletions Adjustments June 30, 2003 Governmental Activities: Capital Assets, not being depreciated: Land $ 18,052,495 $ 18,052,495 Construction in progress 1,749,527 $ 3,523,017 $ (1,749,527) 3,523,017 Total capital assets, not being depreciated 19,802,022 3,523,017 $ - (1,749,527) 21,575,512 Capital Assets, being depreciated: Buildings and structures 2,017,097 149,202 1,739,723 3,906,022 Improvements other than buildings 4,990,705 3,509 9,804 5,004,018 . Machinery and equipment 2,042,492 488,988 (1,838) 2,529,642 Vehicles 2,847,788 154,401 (236,689) 2,765,500 Infrastructure 34,521,491 441,615 (140,567) 34,822,539 Total capital assets, being depreciated 46,419,573 1,237,715 (379,094) 1,749,527 49,027,721 Less accumulated depreciation for: Buildings and structures (1,305,326) (65,154) (1,370,480) Improvements other than buildings (1,839,164) (209,086) (2,048,250) Machinery and equipment (1,046,951) (264,147) 1,838 (1,309,260) Vehicles (981,598) (364,502) 231,242 (1,114,858) Infrastructure (11,343,693) (1,078,936) 97,066 (12,325,563) Total accumulated depreciation (16,516,732) (1,981,825) 330,146 - (18,168,411) Total capital assets, being depredated, net 29,902,841 (744,110) (48,948) 1,749,527 30,859,310 Total governmental activities $ 49,704,863 $ 2,778,907 $ (48,948) $ - $ 52,434,822 63 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 6. CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued Governmental activities depreciation expense for capital assets for the year ended June 30, 2003 was $1,981,825. The City did not allocate the depreciation expense to departments/functions. The following is a summary of capital assets for business -type activities: Balance Balance July 1, 2002 Additions Deletions Adjustments June 30, 2003 Business -type Activities: Capital assets, not being depreciated: Land $ 1,572,740 $ 1,572,740 Construction in progress $ 25,047 25,047 Total capital assets, not being depreciated 1,572,740 25,047 $ $ 1,597,787 Capital assets, being depreciated: Buildings and structures 5,558,605 5,558,605 Improvements other than buildings 13,141 13,141 Machinery and equipment 50,336 50,336 Total capital assets, being depreciated 5,622,082 - 5,622,082 Less accumulated depreciation for: Buildings and structures (258,557) (117,929) (376,486) Improvements other than buildings (13,141) (13,141) Machinery and equipment (28,236) (5,138) (33,374) Total accumulated depreciation (299,934) (123,067) - (423,001) Total capital assets, being depreciated, net 5,322,148 (123,067) - 5,199,081 Total business -type activities $ 6,894,888 $ (98,020) $ $ - $ 6,796,868 Business -type activities depreciation expense for capital assets for the year ended June 30, 2003 are as follows: Downtown enhancement $ 117,658 Parking 5,409 Total depreciation expense $ 123,067 B. Fund Financial Statements The fund financial statements do not present General Government Capital Assets. They are shown in the Reconciliation of the Governmental Funds Balances Sheet to the Government -Wide Statement of Net Assets located after the governmental fund balance sheet in the fund financial statements. 64 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 7. LONG-TERM DEBT A. Long -Term Debt with City Commitment The following is a summary of compensated absences payable transactions for the year ended June 30, 2003: Governmental activities: Compensated absences Total $ 992688 $ $ (96,146) $ 896,542 $ 726,159 $ 170,383 Classification Balance Balance Due in Due in more July 1, 2002 Additions Retirements June 30, 2003 One Year than One Year $ 992688 $ (96,146) $ 896,542 $ 726,159 $ 170,383 The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government -Wide Financial Statement. There is no fixed payment schedule to pay these liabilities. Total amount of compensated absences payable at June 30, 2003, was $896,542. B. Long -Term Debt without City Commitment At June 30, 2003, the following Special Assessment Bonds are payable from the proceeds of the Special Assessment levied and collected on all real property within the special districts. The City is in no way obligated to repay the debt in the event of default and the debt is not recorded in the accompanying financial statements. 1998 Lower Pier Special Assessment Bonds In November 1997, limited obligation improvement bonds in the amount of $400,000 were issued for the Lower Pier Avenue Assessment District for street and sidewalk improvements in the downtown area. The City is in no way financially obligated for payments of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending Balance June 30, Principal Interest Total 2004 $ 15,000 $ 22,263 $ 37,263 2005 15,000 21,287 36,287 2006 15,000 20,312 35,312 2007 20,000 19,175 39,175 2008 20,000 17,875 37,875 2009-2013 110,000 69,225 179,225 2014-2018 155,000 26,813 181,813 Total $ 350,000 $ 196,950 $ 546,950 65 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 7. LONG-TERM DEBT, Continued B. Long -Term Debt without City Commitment, Continued 1999 Myrtle Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,159,114 were' issued for the Myrtle Avenue Utility Underground Assessment District for the undergrounding of utilities within the district. The City is in no way financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending Balance June 30, Principal Interest Total 2004 $ 40,000 2005 40,000 2006 45,000 2007 45,000 2008 45,000 2009-2013 270,000 2014-2018 355,000 2019-2023 165,000 Total $ 1,005,000 $ 52,702 50,923 48,987 46,895 44,735 184,845 88,535 21,419 $ 92,702 90,923 93,987 91,895 89,735 454,845 443,535 186,419 $ 539,041 $ 1,544,041 1999 Lorna Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,324,653 were issued for the Loma Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is in no way financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, 2004 2005 2006 2007 2008 2009-2013 2014-2018 2019-2023 Total Principal $ 45,000 50,000 50,000 50,000 55,000 315,000 410,000 200,000 $ 1,175,000 66 Interest $ 61,685 59,570 57,295 54,970 52,448 216,907 117,928 11,787 $ 632,590 Balance Total $ 106,685 109,570 107,295 104,970 107,448 531,907 527,928 211,787 $ 1,807,590 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 8. OTHER REQUIRED FUND DISCLOSURES A. Deficit Fund Balances At June 30, 2003, the following funds had deficit fund equity: Bayview Drive Underground District Bonnie Brae Underground District Beach Drive Underground District $ (30,000) $ (50,000) $ (23,724) The deficits represent "start up" costs for the district and will be eliminated once the districts have been formed and assessment collections are received. If the districts are not approved, the costs will be transferred to another fund. B. Excess of Expenditures over Appropriations For the year ended June 30, 2003, expenditures exceeded budget in the Internal Service Insurance Fund in the amount of $183,211 because of an increase in the estimate of incurred but not reported (IBNR) claims during the period. 9. RISK MANAGEMENT The City maintains an internal service fund to account for the City's general liability and workers' compensation claims, automobile, property, and unemployment insurance. The City is self-insured for individual workers' compensation claims up to $325,000 and for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $10,000,000 per occurrence, as a member of the Independent Cities Risk Management Authority (ICRMA). Settled claims have not exceeded this coverage in any of the past four years. ICRMA is a joint exercise of powers authority organized and operating pursuant to the California Government Code. ICRMA was formed in 1980 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable ICRMA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers' compensation claims. ICRMA's annual budget is based on estimated payroll, historical loss experience and self insured retention for each participating member. The budgeted weighted risk sharing percentage is one element of determining the City's annual premium but does not necessarily represent the percentage participation in the losses of the ICRMA. Budgeted weighted risk sharing percentages for the last five years are listed below: 2.57% weighted risk sharing percentage for July 1, 2002 to July 1, 2003 3.10% weighted risk sharing percentage for July 1, 2001 to July 1, 2002 3.10% weighted risk sharing percentage for July 1, 2000 to July 1, 2001 1.84% weighted risk sharing percentage for July 1, 1999 to July 1, 2000 2.41% weighted risk sharing percentage for July 1, 1998 to July 1, 1999 67 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 9. RISK MANAGEMENT, Continued The City's premiums to ICRMA in the amount of $ 136,698 for the fiscal year 2002-2003 are in accordance with formulas established by ICRMA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement however there has never been an additional assessment since the pool was formed The City has entered into contracts with service agents who supervise and administer the City's general liability and workers' compensation insurance program. Claim loss estimates are determined by the service agent based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (IBNR) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid. The workers' compensation and general liability claims payable of $2,342,633 reported at June 30, 2003, are based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Fund's claims liability amounts were as follows: Current Year Beginning Claims and End Amounts of Year Changes in Claim ' of Year Due within Liability Estimates Payments Liability One Year Workers' Compensation 2000-2001 $ 1,264,848 $ 777,058 $ (631,538) $ 1,410,368 $ 250,000 2001-2002 1,410,368 1,256,827 (686,366) 1,980,829 325,000 2002-2003 1,980,829 473,475 (685,173) 1,769,131 325,000 General Liability 2000-2001 $ 510,403 $ 321,960 $ (259,440) $ 572,923 $ 250,000 2001-2002 572,923 10,316 (250,857) 332,382 250,000 ' 2002-2003 332,382 596,841 (355,721) 573,502 250,000 Detailed financial information may be obtained from the ICRMA Program Administrator located at 5777 West Century Boulevard, Suite 665, Los Angeles, California 90045. 68 City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS A. Public Employee Retirement System Plan Description The . City contributes to the California Public Employees Retirement System (Ca1PERS), an agent multiple -employer public employee defined benefit pension plan. Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the Ca1PERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. Funding Policy City employees are required by State statute to contribute 7% for miscellaneous employees and 9% for safety employees of their annual covered salary. As a negotiated benefit, the City makes the contributions required of City employees on their behalf. Those contributions amounted to $750,130 for the year ended June 30, 2003. The City, as the employer, is required to contribute for fiscal year 2002- 2003 at an actuarially determined rate; the current rate applied to annual covered payroll is 0% for miscellaneous employees, 21.398% for police employees, and, 8.451% for fire employees. The contribution rate for miscellaneous employees is 0% because their plan is superfunded, meaning that the actuarial value of plan assets exceeds the present value of projected benefits., The contribution requirements of City employees and the City employer are established and may be amended by Ca1PERS. Annual Pension Cost For fiscal year 2002-2003, the City's annual pension cost of $789,189 for Ca1PERS was equal to the City's required and actual contributions, of which $0 is for the miscellaneous plan, $635,079 for the police plan and $154,110 for the fire plan. The required contribution was determined as part of the June 30, 2001, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses); (b) projected salary increases ranging from 3.75% to 14.2% depending on age, service, and type of employment, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus) is being amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 2001 was 18 years for public safety police employees, 22 years for public safety fire employees, and 42 years for miscellaneous employees for prior and current service unfunded liability. 69 • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS, Continued . A. Public Employee Retirement System, Continued THREE-YEAR TREND INFORMATION FOR PERS Miscellaneous Plan Police Plan Fire Plan Annual Percentage of Pension Cost APC Net Pension Fiscal Year (APC) Contributed Obligation 6/30/2001 $ - 100% $ 6/30/2002 100% 6/30/2003 100% Fiscal Year Annual Percentage of Pension Cost APC Net Pension (APC) Contributed Obligation 6/30/2001 $ 510,729 100% $ 6/30/2002 563,961 100% 6/30/2003 635,079 100% Fiscal Year Annual Percentage of Pension Cost APC Net Pension (APC) Contributed Obligation 6/30/2001 $ 161,853 100% $ 6/30/2002 169,691 100% 6/30/2003 154,110 100% City of Hermosa Beac Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS, Continued B. Other Post -Employment Benefits In addition to the pension benefits described above, the City provides post -employment health care benefits, in accordance with negotiated Memoranda of Understanding. Prior to July 1, 2000 these benefits were available to employees represented by the Management Association, General and Supervisory Bargaining Unit represented by the California Teamsters Public, Professional and Medical Employees' Union and the Professional and Administrative Employee Association. Eligible employees were service retirees, age 55 or over, with a minimum of ten years continuous service with the City. Employees who retired from September 1, 1988 through August 31, 1991 were provided: 1) $60 per month (or cost of policy, whichever is less) for a minimum of ten years continuous service with the City, or 2) $80 (or the cost of policy, whichever is less) for a minimum of twenty years continuous service, payable to the medical insurance provider. Employees who retired from September 1, 1991 to June 30, 2000 were provided: 1) $40 per month (or cost of policy, whichever is less) for a minimum of ten years continuous service with the City, or 2) $60 respectively (or the cost of policy, whichever is less) for a minimum of twenty years continuous service, payable to the medical insurance provider. For employees retiring on or after July 1, 2002, post employment benefits are as follows for each bargaining group: General and Supervisory Bargaining Unit For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $60 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) $120 per month (or cost of policy, whichever is less) with a minimum of 20 years of service. Professional and Administrative Employees Association For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $80 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) $140 per month (or cost of policy, whichever is less) with a minimum of 20 years of service. 71 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 • • 10. RETIREMENT PLANS, Continued B. Other Post -Employment Benefits, Continued Hermosa Beach Management Association For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $60 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) Cost of policy for employee only with a minimum of 20 years of service. Police Management Association For service retirement: 1) At age 55 or over employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of fifteen years of continuous service with the City, or 2) At age 50 employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of 20 years of continuous service. Police Officers Association For service retirement: 1) At age 55 or over employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of fifteen years of total full-time service with the City, or 2) At age 50 employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of 20 years of total full-time service. Firefighters Association For service retirement at age 50 or disability retirement (no age restriction) employee will receive a medical insurance supplement in the amount of: 1) $150 per month with a minimum of ten years of service with the City, or 2) $200 per month with a minimum of 20 years of service. Estimated benefits payable are budgeted each fiscal year. For fiscal year 2002-2003, sixteen retirees received benefits at a total cost of $19,719. 72 City of Hermosa Bea" Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 11. COMMITMENTS AND CONTINGENCIES A. Commitments The City had several outstanding or planned construction projects as of June 30, 2003. These projects are evidenced by contractual commitments with contractors and include: Commitment Spent to Date Remaining Infrastructure $ 1,750,589 $ 2112,606 Municipal Pier Upgrades 258,933 2370,200 Valley Park Renovation 1,503,330 780,834 Community Center Theatre Phase I Remodel 10,165 125,969 The infrastructure projects include both street and sewer projects that are funded by multiple funds including the Tyco Fund, the Proposition C Fund, the Capital Improvement Fund and the Sewer Fund. An additional source of funding for the placement of handicap ramps and curb cuts for ADA compliance on City streets is a Community Development Block Grant. The Municipal Pier Upgrades project is a commitment of the General Fund and the Tyco Fund, with remaining funding provided by a County Open Space Grant and a State Coastal Conservancy Grant. The Valley Park Renovation project is a commitment of multiple funds including the Parks/ Rec Facility Tax Fund, the 4% Utility Users Tax Fund, the Sewer Fund and the Capital Improvement Fund. Additional funding for Valley Park is provided by a Roberti-Zberg Grant, a Per Capita Grant and a State Department of Recreation Grant. The Community Center Theatre Phase I Remodel is funded by a Community Development Block Grant for ADA Compliance. B. Contingencies The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. 12. SUBSEQUENT EVENTS MacPherson Oil Project The City entered into a lease with MacPherson Oil in 1986 to allow oil drilling from the City Yard site. During the time that ensued, MacPherson was taking the necessary steps to obtain all required environmental reviews and permits. In 1995 the voters enacted a new ordinance by way of an initiative, entitled Proposition E, to prohibit oil drilling in the City. The issue of whether Proposition E applied to MacPherson's project was the subject of a lawsuit initiated by Proposition E proponents. The City and MacPherson argued that Proposition E did not preclude MacPherson from exercising its rights under the lease. The court of appeal, in a final opinion, ruled otherwise, and the oil project is now dead as a result of that decision. 73 • • City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 12. SUBSEQUENT EVENTS, Continued MacPherson Oil Project, Continued MacPherson has now sued the City, by way of a cross-complaint in the legal action referred to above, for damages due to the alleged breach of contract caused by Proposition E. Both parties filed motions for summary judgment in the trial court. In its motion, Macpherson contended, among other things, that enactment of Proposition E worked a breach of its lease with the City, entitling it to damages for lost profits. It claims damages in excess of $100 million. In its motion, the City contended that because the Court of Appeal has ruled Proposition E not to be an unconstitutional impairment of contract, it cannot work a breach. The City further contended that the passage of Proposition E made performance of the lease impossible. Finally, the City contended that if Macpherson is entitled to any damages, they are limited to restitution, and not lost profits. In December, 2003, the trial court granted the City's motion in its entirety, holding that MacPherson is not entitled to proceed against the City for damages. MacPherson is expected to appeal this ruling. The City will vigorously defend this ruling in the court of appeal; however, should Macpherson prevail and obtain a reversal, the matter will be remanded to the trial court for trial. That event could have a material effect on the financial position of the City. 13. PRIOR PERIOD ADJUSTMENTS A. Government -Wide Statements The City recorded the following prior period adjustments to correct prior year transactions, record long- term advances and implement GASB Statement No. 34. Accordingly, the net assets as of July 1, 2002, have been restated as follow: Net Assets Prior Period Adjustments as Previously Capital Long -Term Reported Assets Debt Other Net Assets as Restated Governmental -type activities: Net assets $ 18,515,523 47,207,844 (992,688) 565,696 $ 65,296,375 Total governmental -type activities $ 18,515,523 47,207,844 (992,688) 565,696 $ 65,296,375 B. Fund Financial Statements The City made adjustments in the following funds as a result of GASB Statement No. 34 implementation. Major Funds: General Net Assets as Previously Prior Period Net Assets Reported Adjustments as Restated 954,450 $ 565,696 $ 1,520,146 74 • REQUIRED SUPPLEMENTARY INFORMATION 75 City of Hermosa Beach Required Supplementary Information For the year ended June 30, 2003 1. FINANCIAL POLICIES Any funds remaining unspent at year-end in the General Fund, generally transfer equally to the Contingency Fund, Insurance Fund, Equipment Replacement Fund and the Capital Improvement Fund, however, the City Council deferred the transfer to the Equipment Replacement Fund in fiscal year 2002-03. In 2001- 2002, the City established financial goals for the following funds: Contingency Fund - Goal of fund balance equal to 15% of the General Fund operating budget appropriations for economic uncertainties, unforeseen emergencies. Insurance Fund - Goal of $3,000,000 in retained earnings for claims reserves and catastrophic losses. Equipment Replacement Fund - Goal of retained earnings equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Compensated Absences Fund - Goal of fund balance equal to 50% funding for accrued liabilities for employee vacation, sick and compensatory time. 2. BUDGETS AND BUDGETARY ACCOUNTING Budgets are annually adopted for all governmental and proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the "annual appropriated budget." The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund, however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level. An example of this would be the Finance Department, which has two divisions, Finance Administration, funded by the General Fund and Finance Cashier, funded by the Parking Fund. The City Manager may approve a transfer from Finance Administration to another department within the General Fund, however, a transfer from Finance Administration to Finance Cashier would require City Council approval because the divisions are in two different funds. Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year. Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year- end. Following are the budget comparison schedule for the General Fund and applicable major special revenue funds for which an annual operating budget was adopted. 76 City of Hermosa Beac Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - General Fund Fund Balance, July 1 Resources (inflows): Property taxes Other taxes Licenses and permits Fines and forfeitures Use of money and property Intergovernmental Charges for services Miscellaneous Interest earned on investments .Transfers in Total resources Charges to appropriations (outflows): Legislative and legal General government Public safety Community development Culture and recreation Public works Capital outlay Transfers out Total charges to appropriations Excess of resources over (under) charges to appropriations Fund Balances, June 30 Budgeted Amounts Original Final Actual Amounts Positive (Negative) Variance with Final Budget $ 419,132 $ 1,520,146 $ 1,520,146 $ 5,076,483 5,192,619 5,282,147 7,284,594 7,085,925 7,219,767 427,827 453,137 571,682 190,000 211,000 276,786 224,871 234,871 285,382 1,189,177 1,191,864 1,195,416 1,039,651 1,113,986 1,165,490 414,044 405,891 434,362 178,291 88,621 80,558 1,314,801 1,583,727 1,583,299 17,339,739 17,561,641 18,094,889 739,584 832,158 832,157 1,139,485 1,217,148 1,196,193 10,078,578 10,135,539 9,916,705 1,116,541 1,187,916 939,179 1,035,009 1,042,999 966,621 2,053,870 2,068,155 1,967,115 380,073 680,410 202,142 1,100,000 2,902108 2,902,107 17,643,140 20,066,433 18,922,219 89,528 133,842 118,545 65,786 50,511 3,552 51,504 28,471 (8,063) 428 533,248 1 20,955 218,834 248,737 76,378 101,040 478,268 1 1,144,214 303,401 (2504,792) (827,330) 1,677,462 $ 115,731 $ (984,646) $ 692,816 $ 1,677,462 77 • • City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Tiico Fund Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Fund Balance, July 1 $ - $ $ - $ - Resources (inflows): Use of money and property 2,175,000 1,900,000 (275,000) Interest earned on investment 39,008 41,281 2,273 Total resources 2,214,008 1,941,281 (272,727) Charges to appropriations (outflows): Capital outlay 2,175,000 33,100 2,141,900 Total charges to appropriations 2,175,000 33,100 2,141,900 Excess of resources over (under) charges to appropriations 39,008 1,908,181 1,869,173 Fund Balances, June 30 $ $ 39,008 $ 1,908,181 $ 1,869,173 Budgetary Comparison Schedule - Grant Fund Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Fund Balance, July 1 $ - $ 2,539 $ 2,539 $ - Resources (inflows): Intergovernmental 45,000 370,038 372,098 2,060 Miscellaneous 14,626 9,094 4,390 (4,704) Total resources 59,626 379,132 376,488 (2,644 Charges to appropriations (outflows): Public safety 14,626 13,656 4,390 9,266 Community development 2,946 356 2,590 Public works 10,730 7,168 3,562 Capital outlay 45,000 356,362 356,362 Transfers out 88 87 1 Total charges to appropriations 59,626 383,782 368,363 15,419 Excess of resources over (under) charges to appropriations (4,650) 8,125 12,775 Fund Balances, June 30 $ - $ (2,111) $ 10,664 $ 12,775 78 City of Hermosa Beac Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Seurr Fund Positive (eve) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Fund Balance, July 1 $ 3,393,826 $ 3,520,161 $ 3,520,161 $ - Resrnuces (inflows): Inbnovernrrentil 10,0% 11,230 11,841 611 Charges for services 19,550 22,965 30,773 7,808 Msoellaneous 40,960 5,664 958 (4706) Interest earred on investments 163,067 108,606 106,211 (2-336) Transfers in 700,000 700,000 700,000 - Total resources X33,673 848,465 849,783 1,318 Charges to appropriations (outflows): Public works 591,141 603,071 535,236 67,835 Capital outlay 3,036,000 3,334,761 1,661,132 1,673,629 _- .Total charges to appropriations 3,627,141 3,X37,832 2,196,368 1,741;464 Excess of resources over (under) charges to appropriations Fund Balances, June 30 Bud2etarl Comparison Schedule - Contin2encti Fund Fund Balance, July 1 Resources (inflows): Interest earned on investments 87,980 68,668 72624 3,956 Transfers in 597,469 597,469 Total resources 87,980 666,137 670,093 3,956 Fund Balances, June 30 $ 2,192,083 $ 2,938,224 $ 2,942,180 $ 3,956 (2,693,468) (3,089,367) (1,346,585) 1,742,782 $ 650,358 $ 430,794 $ 2,173,576 $ 1,742,782 Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 2,104,103 $ 2,272,087 $ 2,272087 $ 79 City of Hermosa Beach Required Supplementary Information, Continued For the year' ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Capital Improvement Fund Fund Balance, July 1 Resources (inflows): Miscellaneous 3,670 3,670 Interest earned on investments 114,940 61,832 60,039 (1,793) Transfers in 480,039 1,077,596 1,077,595 (1) Total resources 594,979 1,139,428 1,141,304 1,876 Charges to appropriations (outflows): Capital outlay 2,103,858 2,314,027 788,724 1,525,303 Total charges to appropriations 2,103,858 2,314,027 788,724 1,525,303 Excess of resources over (under) • charges to appropriations (1,508,879) (1,174,599) 352,580 1,527,179 Fund Balances, June 30 $ 28,784 $ 886,709 $ 2,413,888 $ 1,527,179 Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 1,537,663 $ 2,061,308 $ 2,061,308 $ 80 City of Hermosa Beac Required Supplementary Information, Continued For the year ended June 30, 2003 PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) SCHEDULE OF FUNDING PROGRESS Miscellaneous Plan (A) (B) (C) (D) (B) (F) (Overfunded) Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Valuation Asset Accrued Liability Ratio Covered Payroll Date Value Liability (B -A) (A/B) Payroll (C/E) Police Plan Fire Plan 6/30/1999 $ 21,247,564 $ 15,399,017 $ (5,848,547) 138.0% $ 3,980,950 (146.9)% 6/30/2000 23,322,200 16,886,003 (6,436,197) 138.1% 3,993,097 (161.2)% 6/30/2001 23,817,395 18,384,409 (5,432986) 129.6% 4,116,801 (132.0)% (A) (B) (C) (D) (B) (F) Unfunded Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Valuation Asset Accrued Liability Ratio Covered Payroll Date Value Liability (B -A) (A/B) Payroll (C/E) 6/30/1999 $ 25,570,781 $ 26,566,045 $ 995,264 96.3% $ 2,443,781 40.7% 6/30/2000 27,886,110 29,079,122 1,193,012 95.9% 2,619,185 45.5% 6/30/2001 28,814,227 31,541,217 2,726,990 91.4% 2,576,494 105.8% (A) (B) (C) (D) (B) (F) Unfunded (Overfunded) Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Value Asset Accrued Liability Ratio Covered Payroll Date Value liability (B -A) (A/B) Payroll (C/E) 6/30/1999' $ 12,194,938 $ 11,870,016 $ (324,922) 102.7% $ 1,440,510 (22.6)% 6/30/2000 13,318,065 12,824,365 (493,700) 103.8% 1,338,621 (36.9)% 6/30/2001 13,815,326 13,845,239 29,913 99.8% 1,522,830 2.0% • • This page intentionally left blank 82 • • SUPPLEMENTARY INFORMATION 83 I • • This page intentionally left blank • • NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and highway Code 22500-22679. State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund. AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element. Compensated Absences Fund - This fund is used to account for funds set aside to provide for liabilities associated with vacation time, sick time, etc. accumulated by employees. County Gas Tax Fund - This fund is used to account for County Aid to City's funds for use on eligible streets of general countywide interest. Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities. Parks and Recreation Facilities Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities. 4% Utility Users Tax Fund - This fund is used to account for funds remaining from a 4% utility users tax which was pledged for lease payments relating to certificates of participation (COPs) for the purchase of open space. The COPs were defeased in 1997. Remaining funds must be spent for open space purposes. Building Improvement Fund - This fund is intended to provide funds for ongoing building maintenance. Lower Pier Administrative Expense Fund - This fund temporarily holds funds for payment of administrative expenses for the assessment district. These funds are invested but interest is not allocated to this fund because it is not required by the bond documents. Myrtle District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Myrtle Avenue Utility Underground Special Assessment District. Loma District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District. 85 • • NON -MAJOR GOVERNMENTAL FUNDS, Continued Community Development Block Grant Fund - This fund is used to account for funds received for participation in the federal block grant program. Projects must be approved by the County CDBG Commission. Office of Traffic Safety Grant - This fund is used to account for a grant from the State of California that addresses decreasing alcohol and hit and run collisions and increasing seat belt, child safety seat and bivycle helmet use through education and en Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles. Supplemental Law Enforcement Services Fund (COPS) - This fund is used to account for funds received from the Citizen Option for Public Safety (COPS) program, established by the State Legislature in fiscal year 1996- 1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding. California Law Enforcement Equipment Program Fund (CLEEP) - Funds received for the purchase of high technology law enforcement equipment. Taskforce for Regional Auto Theft Prevention (TRAP) Fund - Funds provided by a $1 fee on vehicle registration implemented by the Los Angeles County Board of Supervisor for a program to deter, investigate and prosecute vehicle theft in Los Angeles County. Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations. Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system. Artesia Boulevard Relinquishment Fund - This fund is used to track the costs related to the transfer ownership of Artesia Boulevard from the State to the City. During the fiscal year 2000-01, the State of California determined an estimated cost for the rehabilitation of the street which will be contributed to the City as a part of the transfer of ownership. Lower Pier Avenue Assessment District Fund - This fund is used to account for proceeds from the sale of bonds for downtown improvement. The bonds are secured by real property in the downtown area and repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. 86 • • NON -MAJOR GOVERNMENTAL FUNDS, Continued Myrtle Utility Underground Improvement Fund - This fund is used to account for expenditures relating to the cost for utility undergrounding in the special assessment district. It is also used to account for proceeds from bonds sold to finance the cost of the undergrounding. The bonds are secured by liens against real property within the district and will be repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. Loma Utility Underground Improvement Fund - This fund is used to account for expenditures relating to the cost for utility undergrounding in the special assessment district. It is also used to account for proceeds from bonds sold to finance the cost of the undergrounding. The bonds are secured by liens against real property within the district and will be repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. Bayview Drive Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. Bonnie Brae Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. Beach Drive Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. 87 • • City of Herimosa Beach Combining Balance Sheet Non -Major Governmental Funds June 30, 2003 Special Revenue Funds Lighting and Landscaping State District Gas Tax ASSETS AB 939 Compensated Absences Cash and investments $ 200,089 $ 4,111 $ 425,615 $ 333,164 Reimbursable grants receivable Interest receivable on investments 1,220 10 2,596 Other accounts receivable 7,313 13,139 4,936 Property taxes receivable 9,625 Total assets $ 218,247 $ 17,260 $ 433,147 $ 333,164 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 19,987 $ 13,670 $ 20,000 Accrued wages and compensated absences 21,558 3,741 Due to other funds Deferred revenue 9,625 Total liabilities 51,170 13,670 23,741 $ Fund Balances: Reserved: Bike paths Strand walkways Re -appropriations Unreserved, undesignated Total fund balances 167,077 655 2,935 409,406 333,164 167,077 3,590 409,406 333,164 Total liabilities and fund balances $ 218,247 $ 17,260 $ 433,147 $ 333,164 88 • • Special Revenue Funds Prop A Parks and Lower Pier Myrtle Dist Loma Dist County Open Recreation 4% Utility Building Admin Admin Admin Gas Tax Space Facilities Users Tax Improvement Expense Expense Expense $ 152 $ 200,246 $ 31,803 $ 4,551 $ $ 57,424 1,209 198 21 $ 152 $ 57,424 $ 201,455 $ 32,001 $ $ 57,421 $ 57,421 152 3 $ 27,666 $ 15,599 663 $ 6,484 $ 9,037 42 52 4,572 $ 663 $ 27,666 15,599 $ 6,526 $ 9,089 $ 400 $ 431 $ 510 400 431 510 53,486 120,303 16,402 4,572 263 6,095 8,579 152 3 173,789 16,402 4,572 263 6,095 8,579 $ 152 $ 57,424 $ 201,455 $ 32,001 $ 4,572 $ 663 $ 89 6,526 $ 9,089 (Continued) City of Hermosa Beach Combining Balance Sheet, Continued Non -Major Governmental Funds, Continued June 30, 2003 • • Special Revenue Funds Community Office of Air Supplemental Development Traffic Quality Law Block Safety Management Enforcement Grant Grant District Services ASSETS Cash and investments Reimbursable grants receivable $ 47,606 $ 10,401 Interest receivable on investments Other accounts receivable $ 11,321 Property taxes receivable Total assets LIABILITIES AND FUND BALANCES $ 136,946 834 $ 47,606 $ 10,401 $ 11,321 $ 137,780 Liabilities: Accounts payable $ 3,665 $ 6,263 $ 34,047 Accrued wages and compensated absences 397 $ 24 Due to other funds 43,871 3,741 10,524 Deferred revenue Total liabilities Fund Balances: Reserved: Bike paths Strand walkways Re -appropriations Unreserved, designated Unreserved, undesignated 47,536 10,401 10,548 34,047 70 773 103,733 Total fund balances 70 773 103,733 Total liabilities and fund balances $ 47,606 $ 10,401 $ 11,321 $ 137,780 90 • • Special Revenue Funds California Law Enforcement Taskforce for Equipment Regional Asset Program Auto Theft Seizure and (CLEEP) Prevention Forfeiture $ 53,452 323 $ 38,026 Fire Protection Artesia Lower Bvld Pier Ave Myrtle Utility Loma Utility Relinquish- Assessment Underground Underground went District Improvement Improvement $ 178,181 $ 476,224 $ 507,844 $ 68,938 $ 18,838 $ 97,820 1,084 2,899 3,117 427 115 594 216 1,149 $ 53,775 $ 38,026 $ 179,481 $ 479,123 $ 510,961 $ 69,365 $ 20,102 $ 98,414 $ 10,023 $ 4,802 33,224 10,023 38,026 $ 42,781 971 43,752 20,289 $ $ 24,357 $ 10,299 $ 10,299 $ 159,192 454,766 510,961 69,365 179,481 479,123 510,961 69,365 5,407 4,396 9,803 98,414 98,414 $ 53,775 $ 38,026 $ 179,481 $ 479,123 $ 510,961 $ 69,365 $ 20,102 $ 98,414 91 (Continued) City of Hermosa Beach Combining Balance Sheet, Continued Non -Major Governmental Funds, Continued June 30, 2003 • • ASSETS Cash and investments Reimbursable grants receivable Interest receivable on investments Other accounts receivable Property taxes receivable Total assets LIABILITIES AND FUND BALANCES Special Revenue Funds Bayview Drive Bonnie Brae Beach Drive Total Other Underground Underground Underground Governmental District District District Funds $ 5,000 $ 2,759,158 115,431 14,741 76,100 9,625 $ $ $ 5,000 $ 2,975,055 Liabilities: Accounts payable $ 724 $ 163,284 Accrued wages and compensated absences 30,522 Due to other funds $ 30,000 $ 50,000 28,000 256,781 Deferred revenue 9,625 Total liabilities 30,000 50,000 28,724 460,212 Fund Balances: Reserved: Bike paths 655 Strand walkways 2,935 Re -appropriations 126,031 Unreserved, designated 20,289 Unreserved, undesignated (30,000) (50,000) (23,724) 2,364,933 Total fund balances (30,000) (50,000) (23,724) 2,514,843 Total liabilities and fund balances $ $ $ 5,000 $ 2,975,055 92 • • This page intentionally left blank 93 • • City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds For the year ended June 30, 2003 Special Revenue Funds Lighting and Landscaping State District Gas Tax REVENUES: AB 939 Property taxes $ 454,790 Other taxes Fines and forfeitures Intergovernmental $ 404,314 Charges for services $ 58,654 Miscellaneous 4,058 Interest earned on investments 5,848 1,775 12,114 Compensated Absences Total revenues 460,638 406,089 74,826 $ EXPENDITURES: Current General government 35,139 Public safety Community development Public works 542,864 Capital outlay 4,479 136,704 Total expenditures 547,343 136,704 35,139 REVENUES OVER (UNDER) EXPENDITURES (86,705) 269,385 39,687 OTHER FINANCING SOURCES (USES): Transfers in Transfers out (20,372) (354,286) (44,263) Total other financing sources (uses) (20,372) (354,286) (44,263) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (107,077) (84,901) 39,687 (44,263) FUND BALANCES: Beginning of year 274,154 88,491 369,719 377,427 End of year $ 167,077 $ 3,590 $ 409,406 $ 333,164 94 • • Special Revenue Funds Prop A Parks and Lower Pier Myrtle Dist Loma Dist County Open Recreation 4% Utility Building Admin Admin Admin Gas Tax Space Facilities Users Tax Improvement Expense Expense Expense $ 3,500 $ 19,977 2,937 86,044 $ 2,775 $ 8,629 $ 9,563 $ 30 13,853 $ 7,181 $ 364 246 311 30 22,914 103,397 7,181 364 2,775 8,875 9,874 '11,713 18,000 506,877 347,194 1,733 5,618 5,849 518,590 365,194 - 1,733 5,618 5,849 30 22,914 (415,193) (358,013) 364 1,042 3,257 4,025 57,699 (158,293) (1,021) (2,959) (3,382) (158,293) 57,699 (1,021) (2,959) (3,382) 30 (135,379) (415,193) (300,314) 364 21 298 643 122 135,382 588,982 316,716 4,208 242 5,797 7,936 $ 152 $ 3 $ 173,789 $ 16,402 $ 4,572 $ 263 $ 6,095 $ 8,579 95 (Continued) City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds, Continued For the year ended June 30, 2003 • • Special Revenue Funds Community Office of Air Development Traffic Quality ' Supplemental Block Safety Management Law Grant Grant District Enforcement REVENUES: Property taxes Other taxes $ 100,000 Fines and forfeitures Intergovernmental $ 36,695 $ 57,310 $ 22,074 Charges for services Miscellaneous Interest earned on investments 1,115 3,732 Total revenues 36,695 57,310 23,189 103,732 EXPENDITURES: Current: General government 774 Public safety 38,184 17,115 Community development 12,321 Public works Capital outlay 24,373 19,126 17,997 63,287 Total expenditures 36,694 57,310 18,771 80,402 REVENUES OVER (UNDER) EXPENDITURES 1 4,418' 23,330 OTHER FINANCING SOURCES (USES): Transfers in Transfers out Total other financing sources (uses) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 1 (50,447) (50,447) (46,029) 23,330 FUND BALANCES: Beginning of year 69 46,802 80,403 End of year $ 70 $ $ 773 $ 103,733 96 • • Special Revenue Funds California Law Enforcement Taskforce for Artesia Lower Equipment Regional Asset BvId Pier Ave Myrtle Utility Loma Utility Program Auto Theft Seizure and Fire Relinquish- Assessment Underground Underground (CLEEP) Prevention Forfeiture Protection ment District Improvement Improvement $ 18,181 $ 38,026 $ 1,548 $ 86,800 $ 1,149 1,970 5,370 14,307 $ 15,589 $ 2,089 563 $ 2,946 20,151 38,026 6,918 101,107 15,589 2,089 1,712 2,946 26,198 38,026 15,923 42,121 38,026 (21,970) 6,918 101,107 15,589 2,089 1,712 2,946 (88,451) (88,451) (21,970) 6,918 12,656 15,589 2,089 1,712 2,946 65,722 172,563 466,467 495,372 67,276 8,091 95,468 $ 43,752 $ $ 179,481 $ 479,123 $ 510,961 $ 69,365 $ 9,803 $ 98,414 97 (Continued) City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances Non -Major Governmental Funds, Continued For the year ended June 30, 2003 Special Revenue Funds Bayview Drive Bonnie Brae Beach Drive Total Other Underground Underground Underground Governmental District District District Funds REVENUES: Property taxes $ 454,790 Other taxes 103,500 Fines and forfeitures 1,548 Intergovernmental 596,577 Charges for services 58,654 Miscellaneous 201,955 Interest earned on investments 89,403 Total revenues EXPENDITURES: $ $ $ 1,506,427 Current General government 49,113 Public safety 119,523 Community development 12,321 Public works 572,577 Capital outlay 30,000 50,000 23,724 1,239,684 Total expenditures REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES): Transfers in Transfers out 30,000 50,000 23,724 1,993,218 (30,000) (50,000) (23,724) (486,791) 57,699 (723,474) Total other financing sources (uses) (665,775) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (30,000) (50,000) (23,724) (1,152,566) FUND BALANCES: Beginning of year - 3,667,409 End of year $ (30,000) $ (50,000) $ (23,724) $ 2,514,843 98 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscaping District For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Property taxes Interest earned on investments Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 274,154 $ 274,154 $ 455,900 454,790 (1,110) 5,492 5,848 356 Amount available for appropriation 461,392 460,638 (754) Charges to appropriations (outflows): Public works 599,701 542,864 56,837 Capital outlay 4,800 4,479 321 Transfers out 20,372 20,372 - Total charges to appropriations 624,873 567,715 57,158 Excess of resources over (under) charges to appropriations (163,481) (107,077) 56,404 Fund balance, June 30, 2003 99 $ 110,673 $ 167,077 $ 56,404 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Gas Tax For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Intergovernmental Interest earned on investments Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 88,491 $ 88,491 $ 410,768 404,314 (6,454) 2,338 1,775 (563) Amount available for appropriation 413,106 406,089 (7,017) Charges to appropriations (outflows): Capital outlay 136,704 136,704 Transfers out 354,711 354,286 425 Total charges to appropriations 491,415 490,990 425 Excess of resources over (under) charges to appropriations (78,309) (84,901) (6,592) Fund balance, June 30, 2003 $ 10,182 $ 3,590 $ (6,592) 100 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual AB 939 For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Charges for services Miscellaneous Interest earned on investments Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 369,719 $ 369,719 $ 56,000 11,511 58,654 2,654 4,058 4,058 12,114 603 Amount available for appropriation 67,511 74,826 7,315 Charges to appropriations (outflows): General government 237,073 35,139 201,934 Total charges to appropriations 237,073 35,139 201,934 Excess of resources over (under) charges to appropriations (169,562) 39,687 209,249 Fund balance, June 30, 2003 101 $ 200,157 $ 409,406 $ 209,249 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Compensated Absences For the year ended June 30, 2003 Fund balance, July 1, 2002 Charges to appropriations (outflows): Transfers out Total charges to appropriations Excess of resources over (under) charges to appropriations Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 377,427 $ 377,427 $ 44,263 44,263 44,263 44,263 (44,263) (44,263) Fund balance, June 30, 2003 $ 333,164 $ 333,164 $ 102 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual County Gas Tax For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 122 $ 122 $ Resources (inflows): Interest earned on investments 69 30 (39) Amount available for appropriation 69 30 (39) Fund balance, June 30, 2003 $ 191 $ 152 $ (39) 103 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Prop A Open Space For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 135,382 $ 135,382 $ Resources (inflows): Intergovernmental 48,037 19,977 (28,060) Miscellaneous 2,937 2,937 Amount available for appropriation 48,037 22,914 (25,123) Charges to appropriations (outflows): Capital outlay Transfers out 27,480 27,480 158,295 158,293 2 Total charges to appropriations 185,775 158,293 27,482 Excess of resources over (under) charges to appropriations (137,738) (135,379) 2,359 Fund balance, June 30, 2003 $ (2,356) $ 3 $ 2,359 104 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Parks and Recreation Facilities For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 588,982 $ 588,982 $ Resources (inflows): Other taxes 3,500 3,500 - Miscellaneous 68,544 86,044 17,500 Interest earned on investments 18,285 13,853 (4,432) Amount available for appropriation 90,329 103,397 13,068 Charges to appropriations (outflows): Culture and recreation 25,000 Public works 16,079 Capital outlay 638,231 11,713 506,877 25,000 4,366 131,354 Total charges to appropriations 679,310 518,590 160,720 Excess of resources over (under) charges to appropriations (588,981) (415,193) 173,788 Fund balance, June 30, 2003 $ 1 $ 173,789 $ 173,788 105 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 4% Utility Users Tax For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 316,716 $ 316,716 $ Resources (inflows): Interest earned on investments 10,098 7,181 (2,917) Transfer in 57,699 57,699 Amount available for appropriation 67,797 64,880 (2,917) Charges to appropriations (outflows): Public works Capital outlay 18,150 347,269 18,000 150 347,194 75 Total charges to appropriations 365,419 365,194 225 Excess of resources over (under) charges to appropriations (297,622) (300,314) (2,692) Fund balance, June 30, 2003 106 $ 19,094 $ 16,402 $ (2,692) • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Improvement For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 4,208 $ 4,208 $ Resources (inflows): Interest eamed on investments 500 364 (136) Amount available for appropriation 500 364 (136) Fund balance, June 30, 2003 107 $ 4,708 $ 4,572 $ (136) • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lower Pier Administrative Expense For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 242 $ 242 $ Resources (inflows): Miscellaneous 2,775 2,775 Amount available for appropriation 2,775 2,775 Charges to appropriations (outflows): General government 1,763 1,733 30 Transfers out 1,021 1,021 Total charges to appropriations 2,784 2,754 30 Excess of resources over (under) charges to appropriations (9) 21 30 Fund balance, June 30, 2003 $ 233 $ 263 $ 30 108 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Myrtle District Administrative Expense For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 5,797 $ 5,797 $ Resources (inflows): Miscellaneous 8,629 8,629 Interest earned on investments 162 246 Amount available for appropriation 8,791 8,875 Charges to appropriations (outflows): General government 5,718 5,618 Transfers out 2,959 2,959 Total charges to appropriations 8,677 8,577 Excess of resources over (under) charges to appropriations 114 298 84 100 100 184 Fund balance, June 30, 2003 $ 5,911 $ 6,095 $ 184 109 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Loma District Administrative Expense For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 7,936 $ 7,936 $ Resources (inflows): Charges for services 750 (750) Miscellaneous 9,563 9,563 - Interest earned on investments 217 311 94 Amount available for appropriation 10,530 9,874 (656) Charges to appropriations (outflows): General government 6,200 5,849 351 Transfers out 3,382 3,382 Total charges to appropriations 9,582 9,231 351 Excess of resources over (under) charges to appropriations 948 643 (305) Fund balance, June 30, 2003 110 $ 8,884 $ 8,579 $ (305) City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 69 $ 69 $ Resources (inflows): Intergovernmental 426,359 36,695 (389,664) Amount available for appropriation 426,359 36,695 (389,664) Charges to appropriations (outflows): Community development Capital outlay 14,475 411,884 12,321 2,154 24,373 387,511 Total charges to appropriations 426,359 36,694 389,665 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 111 $ 69 $ 70 $ 1 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Office of Traffic Safety Grant For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ - $ - $ Resources (inflows): Intergovernmental 61,719 57,310 (4,409) Amount available for appropriation 61,719 57,310 (4,409) Charges to appropriations (outflows): Public safety Capital outlay 41,291 20,428 38,184 3,107 19,126 1,302 Total charges to appropriations 61,719 57,310 4,409 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 $ 112 $ - $ • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Air Quality Management District For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 46,802 $ 46,802 $ Resources (inflows): Intergovernmental 21,766 22,074 308 Interest earned on investments 1,379 1,115 (264) Amount available for appropriation 23,145 23,189 44 Charges to appropriations (outflows): General government 1,500 774 Capital outlay 18,000 17,997 Transfer out 50,447 50,447 Total charges to appropriations 69,947 69,218 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 113 (46,802) (46,029) 726 3 729 773 $ $ 773 $ 773 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 80,403 $ 80,403 $ Resources (inflows): Other taxes 100,000 100,000 Interest earned on investments 2,826 3,732 906 Amount available for appropriation 102,826 103,732 906 Charges to appropriations (outflows): Public safety 54,079 17,115 36,964 Capital outlay 127,365 63,287 64,078 Total charges to appropriations 181,444 80,402 101,042 Excess of resources over (under) charges to appropriations (78,618) 23,330 101,948 Fund balance, June 30, 2003 $ 1,785 $ 103,733 $ 101,948 114 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual California Law Enforcement Equipment Program For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 65,722 $ 65,722 $ Resources (inflows): Intergovernmental 18,180 18,181 1 Interest earned on investments 2,040 1,970 (70) Amount available for appropriation 20,220 20,151 (69) charges to appropriations (outflows): Public safety 26,200 26,198 2 Capital outlay 60,632 15,923 44,709 Total charges to appropriations 86,832 42,121 44,711 Excess of resources over (under) charges to appropriations (66,612) (21,970) 44,642 Fund balance, June 30, 2003 $ (890) $ 43,752 $ 44,642 115 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Taskforce for Regional Auto Theft Prevention For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ - $ - $ Resources (inflows): Intergovernmental 39,778 38,026 (1,752) Amount available for appropriation 39,778 38,026 (1,752) Charges to appropriations (outflows): Public safety 39,778 38,026 1,752 Total charges to appropriations 39,778 38,026 1,752 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 116 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Asset Seizure and Forfeiture For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 172,563 $ 172,563 $ Resources (inflows): Fines and forfeitures 4,965 1,548 (3,417) Interest earned on investments 5,194 5,370 176 Amount available for appropriation 10,159 6,918 (3,241) Fund balance, June 30, 2003 $ 182,722 $ 179,481 $ (3,241) 117 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Fire Protection For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Miscellaneous Interest earned on investments Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 466,467 $ 466,467 $ 61,088 13,882 86,800 25,712 14,307 425 Amount available for appropriation 74,970 101,107 26,137 Charges to appropriations (outflows): Capital outlay 438,072 438,072 Transfers out 88,451 88,451 Total charges to appropriations 526,523 88,451 438,072 Excess of resources over (under) charges to appropriations (451,553) 12,656 464,209 Fund balance, June 30, 2003 $ 14,914 $ 479,123 $ 464,209 118 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Artesia Boulevard Relinquishment For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 495,372 $ 495,372 $ Resources (inflows): Interest earned on investments 15,096 15,589 493 Amount available for appropriation 15,096 15,589 493 Fund balance, June 30, 2003 119 $ 510,468 $ 510,961 $ 493 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lower Pier Avenue Assessment District For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 67,276 $ 67,276 $ Resources (inflows): Interest earned on investments 2,019 2,089 70 Amount available for appropriation 2,019 2,089 70 Fund balance, June 30, 2003 $ 69,295 $ 69,365 $ 70 120 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Myrtle Utility Underground Improvement For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 8,091 $ 8,091 $ Resources (inflows): Miscellaneous 1,149 1,149 Interest earned on investments 534 563 29 Amount available for appropriation 534 1,712 1,178 Charges to appropriations (outflows): Capital outlay Total charges to appropriations 15,580 15,580 15,580 15,580 Excess of resources over (under) charges to appropriations (15,046) 1,712 16,758 Fund balance, June 30, 2003 121 $ (6,955) $ 9,803 $ 16,758 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Loma Utility Underground Improvement For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 95,468 $ 95,468 $ Resources (inflows): Interest earned on investments 3,865 2,946 (919) Amount available for appropriation 3,865 2,946 (919) Excess of resources over (under) charges to appropriations 3,865 2,946 (919) Fund balance, June 30, 2003 122 $ 99,333 $ 98,414 $ (919) • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Bayview Drive Underground District For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ Charges to appropriations (outflows): Capital outlay Total charges to appropriations Excess of resources over (under) charges to appropriations 30,000 30,000 30,000 30,000 (30,000) (30,000) Fund balance, June 30, 2003 $ (30,000) $ (30,000) $ 123 • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Bonnie Brae Underground District For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ - $ - $ Charges to appropriations (outflows): Capital outlay Total charges to appropriations Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 124 50,000 50,000 50,000 50,000 (50,000) (50,000) $ (50,000) $ (50,000) $ • • City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Beach Drive Underground District For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ $ - $ Charges to appropriations (outflows): Capital outlay Total charges to appropriations Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 125 23,724 23,724 23,724 23,724 (23,724) (23,724) $ (23,724) $ (23,724) $ • • This page intentionally left blank 126 • • NON -MAJOR PROPRIETARY FUNDS Proposition "A" Transit Fund - Transit revenue consists primarily of Proposition A fund (the 1/2 cent sales tax for Los Angeles County transportation purposes). The City currently operates a Dial -a -Ride program, a taxi voucher program, a commuter bus and subsidizes bus passes for senior citizens and students. Proposition "C" Transit Fund - The Proposition C Fund is a fund which was added during 1992 to account for funds allocated from the voter -approved 1/2 cent sales tax. Funds must be used for transit purposes. 127 • • City of Hermosa Beach Combining Statement of Net Assets Non -Major Proprietary Funds For the Year Ended June 30, 2003 Total Proposition "A" Proposition "C" Other Enterprise Transit Transit Funds ASSETS Current assets: Cash and investments $ 171,735 $ 701,494 $ 873,229 Interest receivable on investments 1,053 4,275 5,328 Other accounts receivable 27,830 21,607 49,437 Total current assets Total assets LIABILITIES 200,618 200,618 727,376 927,994 727,376 927,994 Current liabilities: Accounts payable 62,351 62,351 Accrued wages and compensated absences 1,618 1 1,619 Total liabilities 63,969 1 63,970 NET ASSETS Restricted for special projects 136,649 727,375 864,024 Total net assets $ 136,649 $ 727,375 $ 864,024 128 • • City of Hermosa Beach Combining Statement of Revenues, Expenses and Changes in Net Assets Non -Major Proprietary Funds For the year ended June 30, 2003 Total Proposition "A" Proposition "C" Other Enterprise Transit Transit Funds OPERATING REVENUES: Other taxes $ 289,337 $ 208,939 $ 498,276 Charges for services 14,381 14,381 Miscellaneous 706 706 Total operating revenues 304,424 208,939 513,363 OPERATING EXPENSES: Salaries and wages 31,676 Contractor services 271,042 Supplies 189 Total operating expenses OPERATING INCOME (LOSS) NONOPERATING REVENUES (EXPENSES): 302,907 103,091 31,676 374,133 189 103,091 405,998 1,517 105,848 107,365 Interest earned on investments 5,647 21,367 27,014 Total nonoperating revenues (expenses) Changes in net assets NET ASSETS: 5,647 21,367 27,014 7,164 127,215 134,379 Beginning of the year 129,485 600,160 729,645 End of the year $ 136,649 $ 727,375 $ 864,024 129 • • City of Hermosa Beach Combining Statement of Cash Flows Non -Major Proprietary Funds For the year ended June 30, 2003 Total Proposition "A" Proposition "C" Other Enterprise. Transit Transit Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers/other funds $ 297,829 $ 208,494 $ 506,323 Cash payments to suppliers for goods and services (255,318) (149,300) (404,618) Cash payments to employees for services (31,649) (31,649) Other operating revenues 706 706 Net cash provided by (used for) operating activities 11,568 59,194 70,762 CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments Net cash provided (used) by investing activities 5,647 21,367 27,014 5,647 21,367 27,014 Net increase (decrease) in cash and cash equivalents 17,215 80,561 97,776 CASH AND CASH EQUIVALENTS: Beginning of year 154,520 620,933 775,453 Ending of year $ 171,735 $ 701,494 $ 873,229 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Changes in operating assets and liabilities: Interest receivable on investments Other accounts receivable Accounts payable Accrued wages and compensated absences Total adjustments Net cash provided (used) by operating activities: 130 1,517 $ 105,848 $ 107,365 531 1,870 2,401 (6,420) (2,315) (8,735) 15,913 (46,209) (30,296) 27 27 10,051 (46,654) (36,603) $ 11,568 $ 59,194 $ 70,762 • • INTERNAL SERVICE FUNDS Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds. Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life. 131 • • City of Hermosa Beach Combining Statement of Net Assets All Internal Service Funds June 30, 2003 Equipment Insurance Replacement Fund Fund ASSETS Total Current assets: Cash and investments $ 4,058,693 $ 2269,548 $ 6,328,241 Other accounts receivable 6,750 6,750 Deposits 80,000 80,000 Other assets 1,746 8,710 10,456 Total current assets 4,140,439 2,285,008 6,425,447 Property and equipment, net of accumulated depreciation 2427,206 2,427,206 Total assets 4,140,439 4,712,214 8,852,653 LIABILITIES Current liabilities: Current portion of long-term liabilities 575,000 Accounts payable 35,233 Accrued wages and compensated absences 18,631 55,004 43,246 575,000 90,237 61,877 Total current liabilities 628,864 98,250 727,114 Long-term liabilities: Workers' compensation claims payable 1,769,131 1,769,131 General liability claims payable 573,502 573,502 Less current portion above (575,000) (575,000) Total long-term liabilities 1,767,633 - 1,767,633 Total liabilities 2396,497 98,250 2,494,747 NET ASSETS Invested in capital assets, net of related debt 2427,206 2427,206 Unrestricted 1,743,942 2,186,758 3,930,700 Total net assets $ 1,743,942 $ 4,613,964 $ 6,357,906 132 • • City of Hermosa Beach Combining Statement of Revenues, Expenses, and Changes in Net Assets All Internal Service Funds For the year ended June 30, 2003 Equipment Insurance Replacement Fund Fund OPERATING REVENUES: Total Charges for services $ 1,283,133 $ 1,051,525 $ 2,334,658 Miscellaneous 5,180 5,180 Total operating revenues 1,288,313 1,051,525 2,339,838 OPERATING EXPENSES: Salaries and wages 91,947 251,888 343,835 Contractor services 360,167 203,609 563,776 Supplies 462 157,537 157,999 Claims expense 1,072,867 1,072,867 Depreciation 531,812 531,812 Total operating expenses 1,525,443 1,144,846 2,670,289 OPERATING INCOME (LOSS) (237,130) (93,321) (330,451) NONOPERATING REVENUES (EXPENSES): Proceeds on sale of assets 18,957 18,957 Total nonoperating revenues (expenses) - 18,957 18,957 INCOME (LOSS) BEFORE TRANSFERS (237,130) (74,364) (311,494) Contributions of capital assets from government 31,632 31,632 Transfers in 597,469 60,147 657,616 Transfers out (57,417) (57,417) NET INCOME (LOSS) 360,339 (40,002) 320,337 NET ASSETS Beginning of the year 1,383,603 4,653,966 6,037,569 End of the year $ 1,743,942 $ 4,613,964 $ 6,357,906 133 • • City of Hermosa Beach Combining Statement of Cash Flows All Internal Service Funds For the year ended June 30, 2003 Equipment Insurance Replacement Fund Fund CASH FLOWS FROM OPERATING ACTIVITIES: Total Cash received from customers/other funds $ 1,288,234 $ 1,043,711 $ 2,331,945 Cash payments to suppliers of goods and services (352,385) (408,139) (760,524) Cash payments to employees for services (96,310) (251,139) (347,449) Insurance premiums and settlements (1,043,445) (1,043,445) Cash received from (payments to) others 5,180 5,180 Net cash provided by (used for) operating activities (198,726) 384,433 185,707 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in 597,469 60,147 657,616 Transfers out (57,417) (57,417) Net cash provided by (used for) noncapital financing activities 597,469 2,730 600,199 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds on sale of capital assets 18,957 18,957 Acquisition of capital assets (430,367) (430,367) Net cash provided (used for) by capital and related financing activities - (411,410) (411,410) Net increase (decrease) in cash and cash equivalents 398,743 (24,247) 374,496 CASH AND CASH EQUIVALENTS: Beginning of year 3,659,950 2,293,795 5,953,745 End of year $ 4,058,693 $ 2,269,548 . $ 6,328,241 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) $ (237,130) $ (93,321) $ (330,451) Adjustments to reconcile net operating income (loss) to net cash provided (used) by operating activities: Depreciation 531,812 531,812 Changes in current assets and liabilities: Other accounts receivable 5,664 (6,395) (731) Other assets (563) (1,419) (1,982) Worker's compensation claims payable (211,698) (211,698) General liability claims payable 241,120 241,120 Accounts payable 8,244 (46,993) (38,749) Accrued wages and compensated absences (4,363) 749 (3,614) Total adjustments 38,404 477,754 516,158 Net cash provided (used) by operating activities $ (198,726) $ 384,433 $ 185,707 134 • • FIDUCIARY FUNDS The Agency Fund of the City was established to account for transactions related to payments for limited obligation bonds for the Lower Pier Avenue Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District and the Loma Drive Utility 135 • • City of Hermosa Beach Combining Statement of Fiduciary Net Assets All Agency Funds June 30, 2003 Lower Pier District Myrtle Avenue Loma Drive Redemption Assessment Assessment ASSETS Total Cash and investments $ 31,803 $ 93,726 $ 99,425 $ 224,954 Interest receivable 198 573 605 1,376 Other accounts receivable 2,899 2,577 5,476 Total assets $ 32,001 $ 97,198 $ 102,607 $ 231,806 LIABILITIES Assessment: Installment account $ 32,001 $ 97,198 $ 102,607 $ 231,806 Total liabilities $ 32,001 $ 97,198 $ 102,607 $ 231,806 136 • • City of Hermosa Beach Combining Statement of Changes in Assets and Liabilities All Agency Funds For the year ended June 30, 2003 Balance Balance July 1, 2002 Additions Deletions June 30, 2003 ASSETS Lower Pier District Redemption Fund: Cash and investments $ 29,870 $ 46,690 $ (44,757) $ 31,803 Interest receivable 310 198 (310) 198 Other accounts receivable 1,598 (1,598) Myrtle Avenue Assessment Fund: Cash and investments 83,001 135,267 (124,542) 93,726 Interest receivable 843 573 (843) 573 Other accounts receivable 3,074 2,899 (3,074) 2,899 Loma Drive Assessment Fund: Cash and investments 94,929 167,601 (163,105) 99,425 Interest receivable 964 605 (964) 605 Other accounts receivable 2,515 2,577 (2,515) 2,577 Total assets LIABILITIES Lower Pier District Redemption Fund: Assessment installment account Myrtle Avenue Assessment Funds: Assessment installment account Loma Drive Assessment Fund: Assessment installment account Total liabilities $ 217,104 $ 356,410 $ (341,708) $ 231,806 $ 31,778 $ 46,888 $ (46,665) $ 32,001 86,918 138,739 (128,459) 97,198 98,408 170,783 (166,584) 102,607 $ 217,104 $ 356,410 $ (341,708) $ 231,806 137 • • This page intentionally left blank. 138 • • CAPITAL ASSETS USED IN THE OPERATING OF GOVERNMENTAL FUNDS 139 • • City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule By Source* June 30, 2003 GOVERNMENTAL FUNDS CAPITAL ASSETS: Land $ 17,676,802 Buildings and improvements 3,906,022 Improvements other than buildings 5,004,018 Machinery and equipment 1,772,240 Vehicles 6,186 Construction in progress 3,523,017 Infrastructure 34,822,539 Total governmental funds capital assets Accumulated depreciation Total governmental funds capital assets, net 66,710,824 (16,703,208) $ 50,007,616 INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE: State grants $ 46,601 General fund revenues 27,311,966 Special revenue funds revenues 39,044,331 Donated assets 307,926 Total governmental funds capital assets 66,710,824 Accumulated depreciation (16,703,208) Total governmental funds capital assets, net $ 50,007,616 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 140 • • City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity* June 30, 2003 Buildings Improvements Machinery and Other than and Construction Land Structures Buildings Equipment Vehicles Infrastructure in Progress Total GOVERNMENTAL FUNDS CAPITAL ASSETS General government $ 60,000 $ 2,556,997 $ 63,481 $ 378,056 $ 6,186 $ 3,064,720 Public safety 191,855 455,043 913,708 1,560,606 Community development 137,474 16,491 153,965 Culture and recreation 650,000 676,536 102,578 124,314 1,553,428 Public works 16,966,802 480,634 4,245,442 339,671 $ 34,822,539 $ 3,523,017 60,378,105 Total governmental funds capital assets 17,676,802 3,906,022 5,004,018 1,772,240 6,186 34,822,539 3,523,017 66,710,824 Accumulated depreciation (1,370,480) (2,048,250) (958,915) (12,325,563) (16,703,208) Total governmental funds capital assets $ 17,676,802 $ 2,535,542 $ 2,955,768 $ 813,325 $ 6,186 $ 22,496,976 $ 3,523,017 $ 50,007,616 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 141 • City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule of Changes in Capital Assets - By Function by Activity* For the year ended June 30, 2003 Capital Capital Assets Inventory Assets July 1, 2002 Additions Deletions Adjustment June 30, 2003 Function and Activity: General government $ 2,707,266 $ 371,677 $ (14,223) $ 3,064,720 Public safety 1,638,448 99,047 (176,889) 1,560,606 Community development 152,925 1,040 153,965 Culture and recreation 1,526,701 26,727 1,553,428 Public works 22,027,336 3,969,845 (140,567) $ 34,521,491 60,378,105 Total governmental funds capital assets 28,052,676 4,468,336 (331,679) 34,521,491 66,710,824 Accumulated depreciation (1,450,013) 113,127 (15,366,322) (16,703,208) Total governmental funds capital assets, net $ 28,052,676 $ 3,018,323 $ (218,552) $ 19,155,169 $ 50,007,616 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. 142 • • STATISTICAL SECTION (Unaudited) 143 • • City of Hermosa Beach Government -Wide Revenues June 30, 2003 Last two fiscal years (Unaudited) PROGRAM REVENUES GENERAL REVENUES Grants and Contributions Charges Operating Capital Not Restricted for Grants and Grants and to Specific Investment Fiscal Year Services Contributions Contributions Taxes Programs Earnings Other Total 2001-2002 $ 5,233,107 $ 596,278 $ 1,678,235 $ 12,924,320 $ 1,146,371 $ 797,918 $ 567,261 $ 22,943,490 2002-2003 5,895,438 642,214 475,933 13,454,981 3,111,569 535,167 411,470 24,526,772 Source : City of Hermosa Beach - Finance Department GASB Statement 34 implemented fiscal year 2003 144 • • City of Hermosa Beach Government -Wide Expense by Function June 30, 2003 Last two fiscal years (Unaudited) Culture Proposition Proposition Legislative General , Public Community and Public Downtown "A" "C" Fiscal Year and Legal Government Safety Development Recreation Works Depreciation Enhancement Parking Transit Transit Total 2001-2002 $ 823,736 $ 1,685,183 $ 9,598,652 $ 900,709 $ 900,851 $ 4,529,164 $ 1,759,570 $ 933,796 $1,577,320 $ 263,641 $ 443,344 $23,415,966 2002-2003 810,589 1,100,565 9,962,500 927,174 944,267 3,063,912 1,981,825 909,137 1,525,371 302,907 103,091 21,631,338 Source : City of Hermosa Beach - Finance Department GASB Statement 34 implemented fiscal year 2003 145 • • City of Hermosa Beach General Governmental Revenues by Source June 30, 2003 Last Ten Fiscal Years (Unaudited) Interest Earned on Investments Property and Use of Charges and Licenses Fines and Money and Inter- for Fiscal Year Other Taxes and Permits Forfeitures Property governmental Services Other Total 1993-1994 $ 8,594,929 $ 124,078 $ 179,356 $ 903,979 $ 1,245,037 $ 389,859 $ 44,029 $ 11,481,267 1994-1995 8,640,996 139,758 117,384 1,032,825 2,062,111 467,405 156,519 12,616,998 1995-1996 9,484,209 183,533 124,268 1,043,782 3,100,743 660,850 474,014 15,071,399 1996-1997 8,901,449 275,424 132,334 890,799 1,717,746 755,949 845,830 13,519,531 1997-1998 9,472,541 484,154 163,001 883,387 1,738,821 1,058,616 774,839 14,575,359 1998-1999 9,993,562 567,607 209,785 938,892 6,081,589 1,184,003 394,383 19,369,821 1999-2000 10,754,339 558,456 205,822 1,055,608 3,039,122 2,246,195 4,653,620 22,513,162 2000-2001 11,801,668 579,608 185,736 1,434,124 2,816,543 1,203,290 826,154 18,847,123 2001-2002 12,574,773 445,673 225,653 945,232 3,257,239 1,108,816 645,600 19,202,986 2002-2003 13,060,204 571,682 278,334 2,635,498 2,175,932 1,254,917 645,335 20,621,902 Source : City of Hermosa Beach - Finance Department 146 • • City of Hermosa Beach General Governmental Expenditures by Function June 30, 2003 Last Ten Fiscal Years (Unaudited) Culture General Public Community and Public Debt Capital Fiscal Year Government Safety Development Recreation Works Service Outlay Total 1993-1994 $ 3,127,429 $ 5,597,450 $ 498,633 $ 685,853 $ 2,399,607 $ 707,690 $ - $ 13,016,662 1994-1995 1,463,336 6,382,332 437,203 731,466 2,020,106 534,211 1,191,483 12,760,137 1995-1996 1,366,906 6,443,474 490,673 475,734 2,158,067 3,130,579 2,713,833 16,779,266 1996-1997 1,490,253 6,809,657 699,250 497,993 2,174,626 11,152 3,603,009 15,285,940 1997-1998 1,618,188 7,202,300 665,860 579,692 2,270,463 10,114 1,009,505 13,356,122 1998-1999 1,691,483 7,597,552 756,665 662,438 2,344,034 5,836 6,434,628 19,492,636 1999-2000 1,568,591 7,872,772 814,392 744,245 2,481,209 5,608,405 19,089,614 2000-2001 1,743,773 8,997,038 866,389 725,387 2,582,510 3,406,953 18,322,050 2001-2002 1,913,892 9,186,446 888,262 888,734 2,975,944 3,486,133 19,339,411 2002-2003 2,077,463 10,040,618 951,856 966,621 3,082,096 4,281,144 21,399,798 Source : City of Hermosa Beach - Finance Department 147 • • City of Hermosa Beach Assessed and Estimated Actual Value of Taxable Property June 30, 2003 Last Ten Fiscal Years (Unaudited) Ratio of Net Assessed Value to Estimated Secured Unsecured Less Net Assessed Estimated Percentage Actual Value Fiscal Year Property Property Exemptions Value Valuation Increase (%) 1993-1994 $ 1,650,477,510 $ 19,319,218 $ 28,473,523 $ 1,641,323,205 $ 1,669,796,728 2% 98.29% 1994-1995 1,677,528,958 19,406,553 27,445,557 1,669,489,954 1,696,935,511 2% 98.38% 1995-1996 1,682,602,183 17,400,969 29,395,303 1,670,607,849 1,700,003,152 0.18% 98.27% 1996-1997 1,704,314,436 19,059,312 30,812,333 1,692,561,415 1,723,373,748 1.4% 98.21% 1997-1998 1,737,072,254 20,195,505 31,168,694 1,726,099,065 1,757,267,759 2.0% 98.23% 1998-1999 1,826,726,032 22,813,132 31,150,694 1,818,388,470 1,849,539,164 5.3% 98.32% 1999-2000 2,014,926,680 23,889,046 29,734,340 2,009,081,386 2,038,815,726 10.2% 98.54% 2000-2001 2,196,702,270 23,249,949 30,692,035 2,189,260,184 2,219,952,219 8.88% 98.62% 2001-2002 2,399,510,371 26,313,475 26,277,711 2,399,546,135 2,425,823,846 9.27% 98.92% 2002-2003 2,596,802,111 29,323,836 29,039,328 2,597,086,619 2,626,125,947 8.26% 98.89% Source : County of Los Angeles Auditor -Controller Note : Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. 148 • • City of Hermosa Beach Property Tax Rates and Tax Levies - All Direct and Overlapping Governments (per $100 of assessed valuation) June 30, 2003 - Last Ten Fiscal Years (Unaudited) Metropolitan Los Angeles Flood Water Fiscal Year General County Control District Total 1993-1994 1.000000 0.001713 0.004212 0.008900 1.013112 1994-1995 1.000000 0.001993 0.006041 0.008900 1.014941 1995-1996 1.000000 0.001814 0.000963 0.008900 1.009863 1996-1997 1.000000 0.001604 0.001991 0.008900 1.011677 1997-1998 1.000000 0.001584 0.002197 0.008900 1.012495 1998-1999 1.000000 0.001422 0.001765 0.008900 1.012087 1999-2000 1.000000 0.001451 0.001953 0.008900 1.012304 2000-2001 1.000000 0.001128 0.001073 0.007700 1.009901 2001-2002 1.000000 0.001033 0.000881 0.006700 1.008614 2002-2003 1.000000 0.001033 0.000881 0.006700 1.008614 Source : County of Los Angeles Auditor -Controller Note : Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. 149 City of Hermosa Beach Property Tax Levies and Collections June 30, 2003 Last Ten Fiscal Years (Unaudited) Fiscal Year Total Total Percentage Current Current of Levy Levy Collection Collected 1993-1994 $ 3,296,519 $ 3,027,168 91.83% 1994-1995 3,321,595 3,038,420 91.47% 1995-1996 3,337,288 3,093,600 92.70% 1996-1997 3,362,402 3,149,979 93.68% 1997-1998 3,434,310 3,252,801 94.71% 1998-1999 3,623,653 3,442,675 95.01% 1999-2000 4,002,324 3,808,235 95.15% 2000-2001 4,370,463 4,239,808 97.01% 2001-2002 4,790,920 4,576,910 95.53% 2002-2003 5,193,796 5,017,148 96.60% Source : County of Los Angeles Auditor -Controller City of Hermosa Beach Computation of Legal Debt Margin June 30, 2003 (Unaudited) Total assessed value of all real and personal property $ 2,626,125,947 Legal debt limit - 15% of total assessed valuation $ 393,918,892 (a) Amount of debt applicable to limit None (b) Legal debt margin $ 393,918,892 Percentage of legal debt limit authorized 0% Source : City of Hermosa Beach - Finance Department (a) Per California Government Code Section 43605 (b) The City has no debt payable from taxes levied upon property in the City. • City of Hermosa Beach Statement of Direct and Overlapping Debt June 30, 2003 (Unaudited) 2002-2003 Assessed Valuation : DIRECT DEBT: Hermosa Beach Elementary School District 2002 Percent Net Gross Bonded Applicable Bonded Debt Balance to City Debt $ 9,579,401 100.000% $ 9,579,401 TOTAL DIRECT DEBT: 9,579,401 OVERLAPPING DEBT: Los Angeles County Detention Facilities 1987 Debt Service $ 30,225,000 0.442% 133,723 Los Angeles County Flood Control Storm Drain Debt Service 10,110,000 0.405% 40,909 Los Angeles County Flood Control Refunding Bonds 1993 Debt Service 845,000 0.405% 3,419 West Basin Water District Debt Service* 475,265,000 0.457% 2,169,725 El Camino Community College District 2002 Debt Service 63,700,000 5.267% 3,354,984 TOTAL OVERLAPPING DEBT 5,702,760 TOTAL DIRECT AND OVERLAPPING DEBT $ 15,282,161 2002/03 Net Assessed Valuation : $ 2,597,086,619 Debt to Assessed Valuation Ratios : Direct Debt 0.37% Overlapping Debt 0.22% Total Debt 0.59% * This fund is a portion of a larger agency, and is responsible for debt in areas outside the City. Source : HdL Coren & Cone, Los Angeles County Assessor Combined 2002/2003 Lien Date Tax Rolls This report reflects general obligation debt which is being repaid through voter -approved indebtedness. It exdudes revenue, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of participation. 152 • • City of Hermosa Beach Demographic Statistics June 30, 2003 Last Ten Fiscal Years (Unaudited) Fiscal Year Data Source: (b) (c) (d) (e) (a) Per Capita Persons per Unemployment School Population Income Household Rate (%) Enrollment 1993-1994 18,714 2.023 2.6 778 1994-1995 18,598 2.034 1.9 760 1995-1996 18,681 2.014 2.1 887 1996-1997 18,919 2.021 1.8 1,324 1997-1998 19,098 2.038 1.6 1,346 1998-1999 19,401 2.059 1.4 1,384 1999-2000 19,631 2.082 1.5 1,420 2000-2001 18,912 $ 54,244 2.112 1.4 1,430 2001-2002 19,175 1.995 1.4 1,471 2002-2003 19,365 2.019 1.7 1,489 (a) State of California Department of Finance, estimated population. (b) U.S. Department of Commerce, Bureau of the Census, per capita income available every ten years as part of national census. Census 2000. (c) State of California Department of Finance (d) State of California Employment Development Department. Expressed as a percentage, estimate based on ratio to County movement since 1980 and 1990 Census. (e) State Department of Education. 153 • • City of Hermosa Beach Construction Value, Property Value and Bank Deposits June 30, 2003 Last Ten Fiscal Years (Unaudited) Residential Commercial Number of Number of Total Bank Deposits Fiscal Year Permits Valuation Permits Valuation Assessed (in thousands) 1993-1994 259 $ 3,085,519 47 $ 1,124,332 $ 1,669,796,728 $ 128,161 1994-1995 236 3,681,282 71 1,296,815 1,696,935,511 129,866 1995-1996 316 7,643,660 75 1,840,624 1,700,003,152 135,486 1996-1997 363 12,034,307 67 4,508,672 1,723,373,748 146,695 1997-1998 612 29,728,509 73 3,977,221 1,757,267,759 153,236 1998-1999 594 37,648,012 55 6,857,053 1,849,539,164 166,610 1999-2000 476 27,553,549 57 6,044,503 2,038,815,726 183,910 2000-2001 540 32,136,129 56 7,402,324 2,219,952,219 190,111 2001-2002 591 19,260,802 43 2,142,566 2,425,823,846 194,276 2002-2003 630 23,174,222 65 2,499,590 2,626,125,947 210,669 Source : Construction values - City of Hermosa Beach Community Development Department Bank Deposits - Federal Deposit Insurance Corporation (includes Savings and Loans) 154 • • City of Hermosa Beach Schedule of Insurance June 30, 2003 (Unaudited) Annual Company & Policy Number Policy Period Limits & Coverages Premium Continental Casualty W-128587046 Independent Cities Risk Management Authority Royal Insurance Co. FT2S464149 7-1-02 through 6-30-03 7-1-02 through 6-30-03 7-1-02 through 6-30-03 Statutory Excess Workers' Compensation to $10 million $500,000 S.I.R. Excess Liability Insurance $250,000 S.I.R. $19 million limit for bodily injury, property damage, personal injury, or Public Officials' E&O. Auto Physical damage including Comprehensive & Collision coverage with $5,000 deductible for high dollar value vehicles. Travelers Indemnity Co. of Ill. 7-1-02 through 6-30-03 " All-risk" physical loss or damage to real and personal property, EDP equipment, media, and extra expense, rents, and mobile equipment. Exdudes earthquake and flood. Supplemental policy for earthquake, flood, and loss of income on the parking structure. The Hartford 11-7-02 through 11-7-03 $100,000 public official bond for Finance Director. The Hartford 11-24-02 through 11-24-03 $100,000 public official bond for City Treasurer. Fidelity & Deposit 11-12-99 through 11-12-03 $10,000 public official bond for City Clerk. Fidelity & Deposit 7-1-01 through 7-1-04 $25,000 public employee dishonesty bond with $2,500 deductible. The Hartford 1-3-03 through 1-3-06 $100,000 public official bond for City Manager. Source : City of Hermosa Beach - Personnel Department 155 (4 year period) (3 year period) (3 year period) $64,570.00 $136,698.00 $12,042.00 $22,000.00 $13,501.00 $400.00 $400.00 $355.00 $1,617.00 $1,040.00 • • City of Hermosa Beach Top Property Taxpayers June 30, 2003 (Unaudited) Owner (Number of Parcels) Assessed % of Total Value Assessed Valuation International Church of The Four Square (43) $ 13,787,048 0.52% Regency Centers Limited Partnership (7) 12,469,183 0.47% Playa Pacifica Limited (2) 11,574,185 0.44% Beta Group (2) 10,770,000 0.41 % Robert J. & A. Ranae Desantis (1) 10,404,000 0.40% Cheng Yi & Yin Ying Chang (1) 7,214,610 0.27% SII Trust Schuler Investment Corporation (1) 5,988,216 0.23% Century TCI California Comm LP (2) 5,922,914 0.23% Robert S. Corry (9) 5,743,940 0.22% Roger E. Bacon (5) 5,706,996 0.22% Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls • City of Hermosa Beach Top 25 Sales Tax Producers June 30, 2003 (Unaudited) Business Name Albertsons Aloha Sharkeez Audi Leasing Ltd Bentley Leasing Becker Surfboards Caseys Premium Cars Chase Manhattan Auto Finance Classic Tile & Design Club Sushi E T Surfboards Efram's Mobil Financial Services Vehicle Trust Hennesseys Tavern Jama Auto House Learned Lumber May Mohit Gas Station & Mini Mkt Okells Fireplace Pacific Volkswagen Patrick Molloys Porsche Leasing Ralphs Rocky Cola Sav On Drugs South Bay B M W Spyderboards Vons Percent of City Total Paid By Top 25 Accounts = Approximately 60.15% Source : Hinderliter, de Llamas & Associates, State Board of Equalization * Businesses Listed Alphabetically Period: April 2002 through March 2003 Business Category Grocery Stores with Liquor Restaurants with Beer and Wine Auto Lease Sporting Goods/Bike Stores Used Automotive Dealers Auto Lease Lumber/Building Materials Restaurants with Liquor Sporting Goods/Bike Stores Service Stations Auto Lease Restaurants with Liquor Used Automotive Dealers Lumber/Building Materials Service Stations Home Furnishings New Motor Vehide Dealers Restaurants with Liquor Auto Lease Grocery Stores with Liquor Fast Food Drug Stores New Motor Vehicle Dealers Specialty Stores Grocery Stores with Liquor • • City of Hermosa Beach Major Employers* June 30, 2003 (Unaudited) Name Type of Business Aloha Sharkeez Restaurant with Liquor Comedy & Magic Club Entertainment Hennessey's Tavem Restaurant with Liquor Pacific Volkswagon New Motor Vehicle Dealer, Auto Repair Patrick Molloy's Restaurant with Liquor Pointe 705 Restaurant with Liquor Rocky Cola Cafe Fast Food Shorewood Realtors, Inc. Real Estate South Bay BMW New Motor Vehicle Dealer, Auto Repair Vons Grocery Store with Liquor Source : City of Hermosa Beach - Finance Department * Businesses Listed Alphabetically • City of Hermosa Beach Taxable Sales by Category (in thousands) June 30, 2003 Last Ten Calendar Years (Unaudited) Sales 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Retail Stores : Apparel Stores $ 2,017 $ 2,873 $ 3,074 $ 4,179 $ 2,351 $ 6,269 $ 3,360 $ 2,892 $ 3,114 $ 2,781 Food Stores 15,824 17,529 17,955 18,662 19,496 19,953 19,342 20,076 19,874 19,494 Packaged Liquor Stores 1,808 1,728 1,610 1,531 2,213 2,169 2,348 2,731 2,416 2,104 Eating and Drinking Places 27,766 30,499 32,631 35,252 40,371 43,981 48,815 52,866 55,921 58,192 Home Furnishing and Appliances 1,636 1,892 2,145 3,122 3,589 3,452 4,620 6,109 5,235 5,662 Building Materials and Farm Tools 7,517 8,663 8,799 9,051 9,704 13,197 12,580 12,403 12,406 15,284 Automobile Dealers and Supplies 24,968 24,584 25,532 30,914 41,852 41,005 60,655 83,096 91,434 74,953 Service Stations (a) (a) (a) (a) 5,893 5,258 (a) (a) (a) (a) Other Retail Stores 22,710 23,498 23,646 24,614 15,684 21,628 27,270 33,522 30,705 21,270 Total retail stores 104,246 111,266 115,392 127,325 141,153 156,912 178,990 213,695 221,105 199,740 All Other Outlets 16,774 16,760 18,283 18,633 27,903 27,850 23,357 23,309 23,659 28,058 Total all outlets $ 121,020 $ 128,026 $ 133,675 $ 145,958 $ 169,056 $ 184,762 $ 202,347 $ 237,004 $ 244,764 $ 227,798 Source : State Board of Equalization. (a) Due to limited number of businesses in this category, sales for this category are confidential - they are included in other retail. 159 City of Hermosa Beach Miscellaneous Statistics June 30, 2003 (Unaudited) Date of Incorporation January 14,1907 Form of Government Council -Manager Number of Employees (excluding police and fire) : Full-time 141 Part-time 18 Area in square miles 1.3 Hermosa Beach facilities and services: Miles of Streets 40 Number of Street Lights (city owned) 588 Number of Parking Meters 1,611 Culture and Recreation: Community Theatre 1 Parks 20 Park acreage 21.70 Beach acreage 36.52 Hermosa Valley Green Belt (open space park) acreage 19.50 Fire Protection: Number of stations 1 Number of firefighters and paramedics 20 Police Protection: Number of stations 1 Number of sworn officers 39 Number of law violations: s-='� Physical arrests 1,105 Traffic violations 3,669 Parking violations 46,342 Sewerage System: Miles of sanitary sewers 34 Linear feet of storm drains 6,011 Land Use Statistics: Parcels1 Housing Units2 Building permits issued Facilities and services not included in the reporting entity: Education: Number of elementary schools (2 public, 2 private) Cable Television System: Miles of service Source : City of Hermosa Beach - Finance Department 1HdL Coren & Cone 2 State of California Department of Finance 160 6,881 9,902 695 4 73.46 Honorable Mayor and Members of the Hermosa Beach City Council aviz-e-6, 0 v.--6,5/ 7A7loY July 27, 2004 City Council Meeting July 27, 2004 SUPPLEMENTAL TO ITEM 6b - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DETERMINING UNPAID ASSESSMENTS IN ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) Attached is the Resolution Determining Unpaid Assessments and the related Certificate with the amounts filled in (they are strike -through copies so you can see what was changed.) The prepayment period was over at the end of the day yesterday. The original assessment for the 45 properties was $509,376.44. Of those, 12 owners prepaid for a total of $105,035.02, leaving an unpaid assessment of $404,341.42. Respectfully submitted, Viki Copeland Finance Director Ste City Burrell anager SUPPLEMENTAL Kb INFORMATION F:\B95\FINANCE1\Beach Drive Unpd Assmts Reso-Supplemental.doc RESOLUTION NO. 04 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DETERMINING UNPAID ASSESSMENTS IN ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) WHEREAS, this City Council has taken proceedings under the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (the "Code"), for the formation of Assessment District No. 2004-1 (Beach Drive) (the "Assessment District") and has confirmed an assessment, which assessment and a related diagram were recorded in the office of the Superintendent of Streets and with the County Recorder of the County of Los Angeles; and a notice of assessment, as prescribed in Section 3114 of the Code, has been recorded with the County Recorder of the County of Los Angeles, whereupon the assessment attached as a lien upon the property assessed within the Assessment District as provided in Section 3115 of the Code; and WHEREAS, said proceedings provides that bonds be issued pursuant to the Improvement Bond Act of 1915, Division 10 of the Code secured by the unpaid assessments; and WHEREAS, a list of unpaid assessments has been filed with the City Treasurer pursuant to Section 6420 of the Code, the Superintendent of Streets has listed all of the assessments as unpaid as of July 26 , 2004, and the aggregate amount of unpaid assessments is $404,341.42 and the City Treasurer has filed with this City Council a Certificate of Paid and Unpaid Assessments; F:\B95\FINANCE1 \RESO-BeachDrUnpdAssmt.doc 2 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 • • NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA AS FOLLOWS: SECTION 1. The unpaid assessments upon the security of which the bonds are to be issued are determined to be as set forth the report of the City Treasurer referred to in the recitals hereof. SECTION 2. Bonds representing the unpaid assessments shall be issued pursuant to the Improvement Bond Act of 1915 in the manner provided for in a subsequent resolution of this City Council. SECTION 3. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED this 27th day of July, 2004. PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: City Clerk City Attorney F:\B95\FINANCE 1\RESO-BeachDrUnpdAssmt.doc $404,341.42 CITY OF HERMOSA BEACH ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) LIMITED OBLIGATION IMPROVEMENT BONDS CERTIFICATE OF PAID AND UNPAID ASSESSMENTS The undersigned hereby certifies as follows: 1. Pursuant to Section 10402 of the California Streets and Highways Code, on June 22 , 2004 there was recorded in the office of the Superintendent of Streets of the City of Hermosa Beach (the "City"), an assessment diagram and assessment to represent the cost of the improvements to be made in the City's Assessment District No. 2004-1 (Beach Drive) (the "Assessment District"). 2. I am the City Treasurer of the City, and as such I am the person to whom assessments imposed on parcels located in the Assessment District (the "Assessments") are to be paid. 3. Pursuant to Streets and Highways Code Section 8621, I have determined that the owners of the parcels in the Assessment District that have not elected to prepay their assessments are set forth on Exhibit A attached hereto and made a part hereof. The aggregate amount of the unpaid assessments is $404,341.42 . All other property owners of the parcels listed in the Final Engineer's Report not shown on Exhibit A have paid their assessment. Dated: July 27,2004 CITY OF HERMOSA BEACH By: Its: City Treasurer F:\B95\FINANCE1\Certificate of Unpaid Assessments.DOC Honorable Mayor and Members of July 22, 2004 City Council Meeting the Hermosa Beach City Council July 27, 2004 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DETERMINING UNPAID ASSESSMENTS IN ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) RECOMMENDATION: It is recommended that the City Council adopt the attached resolution determining the unpaid assessments for the Beach Drive Undergrounding District 2004-1. BACKGROUND:. On June 22, 2004, residents of the district voted in favor of forming the assessment district. A cash payment period is in effect until July 26, 2004. 'The cash payment period allows residents a 30 day period, during which time they may prepay their assessed amount, thereby saving any costs of bond issuance or interest on payments made over a twenty year period. ANALYSIS: The resolution determining the amount of unpaid assessments is attached, however, since the prepayment period extends to July 26, 2004, the amounts are blank. Staff will tally the total assessments prepaid at the end of the day on July 26 and forward the information to the City Council on July 27, 2004 in the form of the attached Certificate of Paid and Unpaid Assessments so that the information will be available when the resolution is adopted. Respectfully submitted, Viki Copeland Finance Director F:\B95\FINANCE1\Beach Drive Unpd Assmts Re: 6b 1 2 3 4 5 6 7 8 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 RESOLUTION NO. 04 - RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DETERMINING UNPAID ASSESSMENTS IN ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) WHEREAS, this City Council has taken proceedings under the Municipal Improvement Act of 1913, Division 12 of the California Streets and Highways Code (the "Code"), for the formation of Assessment District No. 2004-1 (Beach Drive) (the "Assessment District") and has confirmed an assessment, which assessment and a related diagram were recorded in the office of the Superintendent of Streets and with the County Recorder of the County of Los Angeles; and a notice of assessment, as prescribed in Section 3114 of the Code, has been recorded with the County Recorder of the County of Los Angeles, whereupon the assessment attached as a lien upon the property assessed within the Assessment District as provided in Section 3115 of the Code; and WHEREAS, said proceedings provides that bonds be issued pursuant to the Improvement Bond Act of 1915, Division 10 of the Code secured by the unpaid assessments; and WHEREAS, a list of unpaid assessments has been filed with the City Treasurer pursuant to Section 6420 of the Code, the Superintendent of Streets has listed all of the assessments as unpaid as of , 2004, and the aggregate amount of unpaid assessments is $ and the City Treasurer has filed with this City Council a Certificate of Paid and Unpaid Assessments; F:\B95\FINANCE 1 \RESO-BeachDrUnpdAssmt.doc NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA AS FOLLOWS: SECTION 1. The unpaid assessments upon the security of which the bonds are to be issued are determined to be as set forth the report of the City Treasurer referred to in the recitals hereof. SECTION 2. Bonds representing the unpaid assessments shall be issued pursuant to the Improvement Bond Act of 1915 in the manner provided for in a subsequent resolution of this City Council. SECTION 3. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED and ADOPTED this 27th day of July, 2004. PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: City Clerk City Attorney F:\B95\FINANCE 1\RESO-BeachDrUnpdAssmt.doc CITY OF HERMOSA BEACH ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) LIMITED OBLIGATION IMPROVEMENT BONDS CERTIFICATE OF PAID AND UNPAID ASSESSMENTS The undersigned hereby certifies as follows: 1. Pursuant to Section 10402 of the California Streets and Highways Code, on , 2004 there was recorded in the office of the Superintendent of Streets of the City of Hermosa Beach (the "City"), an assessment diagram and assessment to represent the cost of the improvements to be made in the City's Assessment District No. 2004-1 (Beach Drive) (the "Assessment District"). 2. I am the City Treasurer of the City, and as such I am the person to whom assessments imposed on parcels located in the Assessment District (the "Assessments") are to be paid. 3. Pursuant to Streets and Highways Code Section 8621, I have determined that the owners of the parcels in the Assessment District that have not elected to prepay their assessments are set forth on Exhibit A attached hereto and made a part hereof. The aggregate amount of the unpaid assessments is $ . All other property owners of the parcels listed in the Final Engineer's Report not shown on Exhibit A have paid their assessment. Dated: July 27, 2004 CITY OF HERMOSA BEACH By: Its: City Treasurer F:\B95\FINANCEI\Certificate of Unpaid Assessments.DOC • • /z2/ol/ July 22, 2004 Honorable Mayor and Members of Regular meeting of The Hermosa Beach City Council July 27, 2004 RECOMMENDATION TO ESTABLISH CONTRACT WITH THE WHALE RESCUE TEAM ORGANIZATION RECOMMENDATION Staff recommends that Council: 1. Authorize the City Manager to establish a contract with the Whale Rescue Team organization to conduct marine mammal rescues on the beaches of Hermosa Beach. BACKGROUND On occasion marine mammals such as seals come ashore on the beaches of Hermosa Beach. When these mammals are in distress it is important that they are rescued. The community services officers of the Police Department (our parking and animal control officers) have been trained in doing such rescues and have been doing these rescues for many years. There are approximately 3-5 rescues that occur per year. ANALYSIS Mr. Peter Wallerstein of the Whale Rescue Team has made an offer to the City to conduct these rescues at no cost. Mr. Wallerstein and the Whale Rescue Team are well known in the area for providing these services. Staff recommends that a contract be developed with the Whale Rescue Team to provide these services. In the event that the Whale Rescue Team is unable to respond, our community services officers will still be able to conduct the rescue if needed. Respectfully submitted, Concur: MICHAEL ' VI , CHIEF OF POLICE S PHEN BUR ELL HERMOSA B CH POLICE DEPARTMENT CITY MANAGER 6c • • P.O.Box 821 El Segundo, CA 90245 June 19, 2004 Mr. Steve Burrell City Manager City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 90254 Dear Mr. Burrell, I'd like to take this opportunity to introduce myself and briefly explain about the professional marine mammal response services that my organization, the Whale Rescue Team (WRT) is proud to provide every city from Venice Beach to Wilmington, except for Hermosa Beach. In 1997, I addressed the City Council of Hermosa Beach proposing the utilization of professional marine mammal rescuers in Hermosa for one dollar per year. The City Council unanimously approved the proposal and I believe the City Manager at that time approved the contract language. But, unfortunately the agreement was never enacted. I would like to suggest that this issue be put on the City Council agenda as soon as possible for their consideration. The WRT has 20 years of experience coming to the aid of marine wildlife. WRT has successfully rescued thousands of seals and seal lions, whales, dolphins and sea birds. Just last year alone, WRT volunteers, with cooperation from agencies throughout the County rescued 177 seals and sea lions, 5 dolphins and over 100 sea birds. The Los Angeles County Board of Supervisors, Animal Control Agencies, the Los Angeles County Lifeguards along with other agencies and citizens throughout our community have honored our highly regarded organization. The WRT abides by all local, state and federal regulations. The mutual respect that is present between the WRT and all the local agencies we interact with is incredible and is one reason why we've had so much success. Inadequate training for something as specialized and dangerous as marine mammal rescue is unfair to the officers responding and certainly exposes them to added risk of injury and to the animals the city is supposed to helping. Lt. Jaakola states that personnel from Hermosa Beach receive "training" at Fort Mac Arthur Marine Mammal Care Center. But, with all do respect for the Lt., he doesn't explain that Fort Mac Arthur is strictly a rehabilitation facility and has never offered rescue services. In fact, the staff at Fort Mac Arthur has at best, very limited experience in marine mammal rescue techniques. Their specialty is the rehabilitation of seals and sea lions and they do a commendable job at that. The WRT has specialized in marine mammal rescue for over 20 years. That's what we know best. The WRT has conducted numerous marine mammal rescue training sessions over the years that have been attended by Fish and Wildlife Officers, other marine rescuers, Animal Control Officers from Ventura County to Orange County, Police Officers and Lifeguards. Evaluating an animal's condition can be very complex. This is also the most important decision for a rescuer to make, for it could mean life or death for an animal. Please let me give you an example that clearly shows the vast difference in skills and experience between a part-time marine rescuer with very limited training and a marine rescue specialist. I say this with all due respect for the Officers involved in this incident and in no way am I attempting to make them look bad. On June 12, 2004 two Hermosa Beach Officers responded to a sea lion call near the Chart House in Hermosa. Upon evaluating the sea lion the Officers left the animal on the beach, stating to concerned citizens that the animal's "OK, it's mother is off getting food and will come back." Marine rescuers should know that at this time of year, last years pups have already been weaned and the mother is probably off giving birth to this years pup. Sea lions give birth in June. This sea lion had no one coming back for it. It was on its own. The sea lion remained on the beach all day. Sea lion yearling rescued by WRT 6-13-04 On June 13, I responded to a sea lion call at the Chart House, on the Redondo side. Upon arrival I observed an emaciated, dehydrated sea lion. The same sea lion that had been around a week with fishermen trying to feed it and the same sea lion that Hermosa Beach officers said, "the mother will retum". This skinny sea lion was 25 pounds. It should be at least 60 pounds for its age. The weak, shivering sea lion also had its ribs and hips exposed. It was obvious that this sea lion was in serious need of human assistance. Without delay, WRT conducted a successful rescue and transported the sea lion to the care center. It is my professional opinion that the Hermosa Officers should not have left this animal on the beach, delaying the care it so desperately needed. It takes many years of experience and training to accurately evaluate a pinnipeds condition. That critical component is what WRT volunteers, trained as marine rescue specialists offer as part of our services. I know the personnel that respond to marine mammal incidents in Hermosa do the very best they can. I've worked with some of them. But, they can't possibly provide the level of professional services that an organization that specializes in marine mammal rescue can provide. Put aside the issue of animal welfare for a moment and just consider the tremendous financial savings for the City utilizing professional marine wildlife rescuers. Utilizing the WRT for marine mammal rescues in your city relieves the City of Hermosa Beach from any financial responsibility what -so -ever for the costs pertaining to marine mammal response, rescue and transportation services. Stranding incidents have increased over the past few years and the potential savings for your city can be substantial. Bottom line, utilizing the WRT is best for the animals and it makes financial sense for the city. Doesn't the City of Hermosa Beach want the best for the marine wildlife that seek sanctuary on its beaches? Or does the city want things to remain status quo by not implementing improvements developed over the years for conducting marine wildlife rescues? I believe, that the vast majority of the public want the very best for these animals and the fact that it won't cost the city anything, so much the better. WRT's mission is to help raise the standard of marine wildlife care in our community by providing professional, compassionate care for injured of orphaned marine wildlife. I hope that the City of Hermosa Beach will join the rest of the community in that effort and allow the WRT to proudly serve the City of Hermosa Beach. Thank you for taking the time to review the information I've enclosed for you. Should you like to speak with me personally, do not hesitate to call. Res ully, Peter Wallerstein Whale Rescue Team 310-560-6284 cc: Mayor Yoon Mayor Pro Tempore Reviczky Councilman Keegan Councilman Edgerton Councilman Tucker Marcia Mayeda Director Administrative Office 5898 Cherry Ave. Long Beach. CA 90805 (562) 728-4882 Fax (562) 422-3408 1ttp://animalcontrol.co.la.ca.us •�t1�. Shelter locations 11258 S. Garfield Ave. Downey. CA 90242 (562) 940-6898 216 W. Victoria St. Gardena, CA 90248 (310) 523-9566 4275 No. Elton Baldwin Park. CA 91706 (626)962-3577 5210 W. Avenue I Lancaster. CA 93536 (661) 940-4191 31044 N. Charlie Cyn. Rd Castaic. CA 91384 (661) 257-3191 29525 Agoura Rd. Agoura. CA 91301 (818) 991-0071 • CO NTY OF LOS ANGELES ANIMAL CARE AND CONTROL February 3, 2003 Mr. Peter Wallerstein Whale Rescue Team 415 Topanga Canyon Blvd. Topanga, CA 90290 Dear Peter: On behalf of the County of Los Angeles' Department of Animal Care and Control, I wish to thank you for all the hard work the Whale Rescue Team has performed on behalf of marine animals. You and your volunteers have been great partners to the County in our responsibility for animals on County beaches. Referring these calls to you has relieved our staff of a difficult workload and allowed us to better respond to domestic animal calls. Your well-trained and equipped volunteers provide a specialized response that we cannot provide. I greatly value our partnership and look forward to many successful years together. Sincerely, 4wilvict Marcia Mayeda Director March 10, 2003 • City of Los Angeles DEPARTMENT OF ANIMAL SERVICES WEST LOS ANGELES ANIMAL SERVICE CENTER Peter Wallerstein President Whale Rescue Team Dear Peter, I would like to take this opportunity to thank you for the service that you have provided to the West Los Angeles Shelter. You have handled the majority of our marine mammal service request along our local beaches, with expertise and professionalism. This has allowed our officers to respond to more emergency calls and freed up valuable resources. The specialized training that you provided to our officers has given them additional knowledge and capture skills when responding to stranded pinnipeds. Your equipment also reflects your ingenuity and professionalism, as you know most of your equipment is not available off the shelf. During the past "El Nino" season we would have been severely overwhelmed without your organization handling the numerous calls that you responded to. The signs that you made were very important as they informed the public and prevented duplicate responses to the same incident. I appreciate your knowledge, dedication and the wealth of resources that you have saved the City of Los Angeles and particularly the West Los Angeles Shelter. The stranded marine mammals and birds have directly benefited by you and the great volunteers in your organization. Thank you, Derek Brown Captain, District Manager West Los Angeles Shelter An epic sea 1* chase finally ends by Mark McDermott It was a little over a month ago when Peter Wallerstein first saw the sea lion that would come to haunt him. The animal, a young female, had jumped onto a dock in King Harbor, where boaters had noticed something badly wrong. The sea lion was enmeshed in fishing net. She had apparently escaped one of the net gill nets that kill so many of her kind, but in doing so had taken a chunk of the monofil- ament webbing with her. The net was around her neck, and she was slowly but surely dying because of it. Redondo Beach Harbor Patrol called Wallerstein, who runs the Whale Rescue Team, a non-profit service dedicated to saving imperiled sea mammals and birds. He rushed to King Harbor, and upon arriving met Harbor Patrol officer Norm Matte. Wallerstein is a soft-spoken man not given to exaggeration, so when he told Matte that he had never failed to capture an ailing sea lion that he'd set out to res- cue, it wasn't meant as a boast. It was a matter of fact. Wallerstein has taken the process of capturing these wild animals to a high level of professionalism. Last year he rescued 177 sea lions, in addition to five dolphins and countless sea birds. He has Easy Reader The sea lion in question, who was slowly being strangled to death by gill net monofilament and was saved last weekend by the Whale Rescue Team. designed a variety of nets and a travel cage over the years specifically designed for sea lions. He wears a beeper on his waste, and when it sounds and he goes into "rescue mode," it is as if he were marching off to war. "Peter," remarked Matte, "is relentless." This, however, would be the most elusive sea lion Wallerstein had yet encountered. That first day, he approached the 60 - pound animal with his hoop net, and members of harbor patrol and Baywatch helped by blocking escape routes. Somehow, though, before the net came down, the animal had rolled off the dock and slipped into the ocean. Variations of this escape would play out again and again over the next few weeks. The sea lion quickly understood what a.man carrying a hoop net meant, and Wallerstein soon couldn't even get >-21 Peter Wallerstein makes a friendly capture at Rat Beach. RB Seal Lion (14 close to it with the net. "Unfortunately, they don't know we are there to help," said Wallerstein. "They only look at us as predators." "It really was kind of comical," said Matte, "all these adults trying to catch this sea lion. It was definitely sick and not moving at full speed, but even at half speed if kept getting away." Often, the animal would be lying with the big 400 -pound male who is the head of the local sea lion harem (which is the actual term used for these polygamous creatures) with other females lying nearby. When Wallerstein would approach, all of them would jump in, taking the ailing female with them. He even made a rescue of a sick pup during one of these approaches, but the lion with the ever -tightening noose kept slipping away. >31 RB Sea lion <21 With a sea mammal, a tranquilizing dart isn't a good option, since it could easily fall back into the water uncon- scious and drown. Wallerstein knew he had to try something different, though, and so he borrowed a floating net. Armed with this piece of equipment, a Baywatch swimmer tried to block the watery escape route by stealthily approaching with the net. It was to no avail, however - the sea lion had become extremely wary and even more adept and calculating escape routes. It got to the point where harbor patrol didn't even have to call to report a sight- ing of the animal. Wallerstein would often just show up in the morning. Matte recalled watching him from the patrol office as he waited for what seemed like forever for the opportune time to make his move on the wary sea lion. 'It was like, my god, this guy's legs are going to fall asleep,' the officer recalled. 'I don't know if hunting is real ly the right word...it had kind of a Zen - attitude about it.' Eventually, said Matte, "the inevitable Caddyshack comparisons came tip.' In the movie, Bill Murray plays a golf course groundskeeper obsessed with the damage being done by groundhogs. He eventually resorts to explosives. "I- felt like Bill Murray in Caddyshack,' Wallerstein admitted. 'Except I would never use explosives. But I felt the frus- tration." "I'm committed to every animal,' he added. 'But this got to be real personal.' The condition of the animal was dete- riorating. From the first day, it had been apparent to Wallerstein that human intervention was all that could prevent her death - infection had set in and the animal was slowly strangling to death. By the third week, pus flowed fromher eyes; she was dying a slow, painful death. Finally, nearly a month from when the saga had begun, he found her alone on a floatation platform, ideally situated for a rescue. He hid behind a piling and judged his jump, then lunged. She kept her head below the net and slid into the water. 'I just sat down and sulked like a baby," Wallerstein remembered. But to his surprise, the animal crawled onto the dock. He hid behind a pump, but she was facing him, so he waited for 20 or 30 minutes. He heard her sigh, and flop over to face the opposite direction. He made his move. As he did so, his net snagged briefly on the dock, and he felt sure he'd bumbled away his best oppor- tunity: Instead, she turned and looked at him, a rare moment of hesitation that allowed him to recover and drop the net over her. "Not again, girl,' he.remem- bered saying: 'You're not getting away from me again." With help from Baywatch and harbor patrol, the animal was secured. Wallerstein took her to the Marine Mammal Care Center at Pt. Fermin, She is still weak, but is now recovering, and could be released into the wild again in a_ few months. Wallerstein founded the Whale Rescue Team 20 years ago this month to fill a gap - neither cities nor any other of the various water:related public safety enti- ties are equipped or trained to deal with sea mammals, much less transport them to care facilities. • 'He said that this capture was a great way to mark his two decades of rescue work. 'I've had a lot of.memorable ones, but this was really gratifying," he said. But he'd also like to celebrate the orga- nization's anniversary by gaining access >32 RB Sea lion (31 to the few places that have not signed up for his $ 1 per year service, which is pri- marily funded through grants and pri- vate donations and carries its own liabil- ity insurance (Redondo - signed up two years ago). High on his list among cities that have not signed up is Hermosa Beach. 'Just spend the dollar," he said. 'I'lI negotiate. If a dollar's too much, I'll go down. I know most cities have prob- lems right now." Wallerstein is an odd combination of St. Francis of Assisi and a Great White Hunter. He began his career caring for wildlife with the Sea Shepard nearly three • decades ago. In .Alaska, he learned that there were 30,000 miles of gill net.dropped every day, annually killing a quarter of a million sea mammals and a million sea birds. He hasn't looked back since. 'My mission is just to live a purposeful life,' he said. "That's it, man. I've found my niche. I've tried other things, but maybe I don't work with people as well as animals. I just wanted to find a posi- tive way to live. Before I was.doing this, you could see how flawed the system was. I've done the best I could." ER si CONEY Y OF LOS ANGELES ANIMAL CARL AND CONTROL dO CARE AN�fAL roiwwm� WINTER 2002 News and Information for Friends of Los Angeles County Animal Care and Control 1 Improved Resources for Marine Wildlife The Department of Animal Care and Control is responsible for patrolling nearly 3,200 miles of ter- ritory across Los Angeles County, including County -controlled beach- es. It is not uncommon for the Department to receive service calls for injured or distressed marine mammals or birds that are ill or injured from nets, fishhooks, or Supervisor Don Knabe honors Peter Wallerstein of the Whale Rescue Team for his outstanding efforts on behalf of marine mammals in Los Angeles County. From left: Chief Lifeguard Mike Frazier, Ocean Lifeguard Specialist Scott Grigsby, Supervisor Don Knabe, Whale Rescue Team President Peter Wallerstein, Department Director Marcia Mayeda, Assistant Chief Russ Walker and Director of Administrative Services Kaye Michelson. other items. These calls have always posed difficulty for the Department because the animals require very specialized handling and equipment not available due to our limited funding. Earlier this summer, the Depart- ment entered into an agreement with the Whale Rescue Team (WRT) to rescue stranded, injured, or ill marine mammals and birds along ACO II Dennis Smith assists WRT Director Peter Wallerstein with an injured seal. County -managed shorelines. Led by Peter Wallerstein, this group of specially trained and equipped volunteers now provides rapid response to all such calls, ensuring skilled and properly equipped rescues. This partnership was solidified just in time to have the resources in place to face an onslaught of domoic acid poisoning of marine mammals. In just a few months, the WRT performed 65 rescues, many times with assis- tance of Department officers. We cannot thank WRT enough for its dedication, compassion, and part- nership! artnership! By working together, we have created safer outcomes for the beautiful and magnificent wild animals on our beaches. :UNITED STATES DEPARTMENT OF CO RCE National Oceanic and Atmospheric Administration NATIONAL MARINE FISHERIES SERVICE �•..,, a I Southwest Region 501 West Ocean Boulevard, Sults 4200 Long Beach, California 90802-4213 TEL (310) 980-4000; FAX (310) 980-4018 JUN n 1994 F/SWO31: JGC Mr. Peter Wallerstein Whale Rescue Team 115 South Topanga Canyon Boulevard, #129 Topanga, California 90290 Dear Mr. Wallerstein: Under the authority of section 112(c) of the Marine Mammal Protection Act of 1972, as amended 16 U.S.C. 1382(c), the U.S. Department of Commerce, National Oceanic and Atmospheric Administration, National Marine Fisheries Service, Southwest Region, authorizes the Whale Rescue Team to capture pinnipeds hauled out on bell buoys and floating docks and suffering from human -related injuries in Los Angeles County and to transport these animals to the Fort MacArthur Marine Mammal Care Center in San Pedro for treatment. This authorization is valid for a period of 5 years from the date of this letter and is subject to the enclosed General Conditions. This authorization is subject to immediate revocation if the terms and conditions of this letter and the General Conditions are not met. Should you have any questions regarding this Letter of Authorization, please contact Mr. Joseph Cordaro, Wildlife Biologist, at (310) 980-4017. Sincerely, Rodney R. McInnis Acting Regional Director Enclosure cc: Martin Hochman, GCSW Gene Proulx, F/EN7 • • POLICE DEPARTMENT City of Manhattan Beach ERNEST M. KLEVESAHL, JR. CHIEF OF POLICE July 23, 2003 ' 420 15TH STREET MANHATTAN BEACH, CALIFORNIA 90266 (310) 802-5103 FAX (310) 802-5101 Mr. James Lecky National Marine Fisheries Service 501 West Ocean Boulevard, Suite 4200 Long Beach, CA 90802-4213 Dear Mr. Lecky: PAUL L. MARSHALL CAPTAIN RANDOLPH M. LEAF CAPTAIN The City of Manhattan Beach Animal Control Department has designated the Whale Rescue Team (WRT) as the primary responder for all beached or distressed marine wildlife in the county -patrolled beach areas around Manhattan Beach. The City of Manhattan Beach assumes full responsibility for WRT's humane capture and transport of marine mammals under the Marine Mammal Protection Act. Please be advised that WRT has also agreed to indemnify the City of Manhattan Beach for any liability, including regulatory fines which may be incurred due to WRT's actions, and has signed an agreement to this affect. Your agency has previously approved of such an agreement. Please feel free to contact Sergeant Andy Harrod of our Department at (310) 802-5165 or Peter Wallerstein of WRT at (310) 455-2729 if you have any questions. Sinc,rely, ERNEST M. KLEVESAHL, JR. CHIEF OF POLICE EMK:SB:cg Encs. " Policing through Partnerships" AGREEMENT THIS AGREEMENT is made this a,3�`t day of J )1) , 2003, by the CITY OF MANHATTAN BEACH, a municipal corporation, ("CITY"), and WHALE RESCUE TEAM, a California Corporation, ("CONTRACTOR"). RECITALS The following recitals are a substantive part of this Agreement: 1. City is desirous of obtaining services for the rescue of marine mammals which may from time to time become stranded on CITY's beaches; 2. CONTRACTOR is qualified by virtue of experience, training, education, and expertise to accomplish these services. AGREEMENT THE PARTIES MUTUALLY AGREE AS FOLLOWS: 1. Term of Agreement. This Agreement shall terminate on , 2003, unless earlier terminated as provided below. 1.1 Termination. CITY and CONTRACTOR shall have the right to terminate this Agreement, without cause, by giving thirty (30) days written notice. Upon receipt of a termination notice, CONTRACTOR shall: (1) promptly discontinue all services affected (unless the notice directs otherwise); and (2) promptly deliver all data, reports, estimates, summaries, and such other information and materials as may have been accumulated by CONTRACTOR in performing the Agreement to CITY, whether completed or in progress. CONTRACTOR shall be entitled to reasonable compensation for the services it performs up to the date of termination. 2. Services to be Provided. The services to be provided hereunder shall be those set forth in Exhibit "A", Scope of Work, which is attached hereto and incorporated herein by this reference. 1 • • 3. Compensation. CONTRACTOR shall be compensated as follows: 3.1 Amount. Compensation under this Agreement shall be one dollar ($1.00 ) per year. 3.2 Expenses. CONTRACTOR shall not be entitled to any additional compensation for expenses. 4. Professional Standards. CONTRACTOR shall maintain or exceed the level of competency presently maintained by other similar practitioners in the State of California, for professional and technical soundness, accuracy and adequacy of all work, advice, and materials furnished under this Agreement. 5. Notification. Upon being called for service, CONTRACTOR shall: (1) Promptly contact the on duty animal control officer and/or the watch commander prior to going on to the beach and rescuing the animal. (2) Where CONTRACTOR must bring vehicles on to the beach it shall contact Los Angeles County to obtain authorization to drive on the beach. 6. Time of Performance. CONTRACTOR shall complete all services required hereunder as and when directed by CITY as set forth in Exhibit "A". However, CITY in its sole discretion, may extend the time for performance of any service. 7. Employees and Subcontractors. CONTRACTOR may, at CONTRACTOR'S sole cost and expense, employ such other person(s) as may, in the opinion of CONTRACTOR, be needed to comply with the terms of this Agreement, if such person(s) possess(es) the necessary qualifications to perform such services. If such person(s) is/are employed to perform a portion of the scope of work, the engagement of such person(s) shall be subject to the prior approval of the CITY. 8. Insurance Requirements. 8.1 Commencement of Work. CONTRACTOR shall not commence work under this Agreement until it has obtained CITY approved insurance. Before beginning work hereunder, during the entire period of this Agreement, for any extensions hereto, and for periods after the end of this Agreement as indicated below, CONTRACTOR must have and maintain in place, all of the insurance coverages required in this Section 7. CONTRACTOR'S insurance shall comply with all items specified by this Agreement. Any subcontractors shall be subject to all of the requirements of this Section 7 and CONTRACTOR shall be responsible to obtain 2 • • evidence of insurance from each subcontractor and provide it to CITY before the subcontractor commences work. All insurance policies used to satisfy the requirements imposed hereunder shall be issued by insurers authorized to do business in the State of California. Insurers shall have a current A.M. Best's rating of not less than A -:VII unless otherwise approved by CITY. 8.2 Coverages, Limits and Policy Requirements. CONTRACTOR shall maintain the types of coverages and limits indicated below: (1) COMMERCIAL GENERAL LIABILITY INSURANCE - a policy for occurrence coverage, including all coverages provided by and to the extent afforded by Insurance Services Office Form CG 0001 ed. 11/88 or 11/85, with no special limitations affecting CITY. The limit for all coverages under this policy shall be no less than one million dollars ($1,000,000.00) per occurrence. CITY, its employees, officials and agents, shall be added as additional insureds by endorsement to the policy. The insurer shall agree to provide the City with thirty .(30) days prior written notice of any cancellation, non -renewal or material change in coverage. The policy shall contain no provision that would make this policy excess over, contributory with, or invalidated by the existence of any insurance, self-insurance or other risk financing program maintained by CITY. In the event the policy contains such an "other insurance" clause, the policy shall be modified by endorsement to show that it is primary for any claim arising out of the work performed under this Agreement. The City of Manhattan Beach Insurance Endorsement Form No. 1 (General Liability) must be executed by the applicable insurance underwriters. (2) COMMERCIAL AUTO LIABILITY INSURANCE - a policy including all coverages provided by and to the extent afforded by Insurance Services Office form CA 0001, ed. 12/93, including Symbol 1 (any auto) with no special limitations affecting the CITY. The limit for bodily injury and property damage liability shall be no less than one million dollars ($1,000,000) per accident. CITY, its employees, officials and agents, shall be added as additional insureds by endorsement to the policy. The insurer shall agree to provide the City with thirty (30) days prior written notice of any cancellation, non -renewal or material change in coverage. The policy shall contain no provision that would make this policy excess over, contributory with, or invalidated by the existence of any insurance, self-insurance or other risk financing program • . maintained by CITY. In the event the policy contains such an "other insurance" clause, the policy shall be modified by endorsement to show that it is primary for any claim arising out of the work performed under this Agreement. The City of Manhattan Beach Insurance Endorsement Form No. 2 (Auto) must be executed by the applicable insurance underwriters. (3) WORKERS' COMPENSATION INSURANCE. - a policy which meets all statutory benefit requirements of the Labor Code, or other applicable law, of the State of California. The minimum coverage limits for said insurance shall be no less than one million dollars ($1,000,000) per claim. The policy shall contain, or be endorsed to include, a waiver of subrogation in favor of CITY. 8.3 Additional Requirements. The procuring of such required policies of insurance shall notbe construed to limit CONTRACTOR'S liability hereunder, nor to fulfill the indemnification provisions and requirements of this Agreement. There shall be no recourse against CITY for payment of premiums or other -amounts with respect thereto. CITY shall notify CONTRACTOR in writing of changes in the insurance requirements. If CONTRACTOR does not deposit copies of acceptable insurance policies with CITY incorporating such changes within sixty (60) days of receipt of such notice, CONTRACTOR shall be deemed in default hereunder. Any deductibles or self-insured retentions must be declared to and approved by CITY. Any deductible exceeding an amount acceptable to CITY shall be subject to the following changes: (1) either the insurer shall eliminate, or reduce, such deductibles or self-insured retentions with respect to CITY and its officials, employees and agents (with additional premium, if any, to be paid by CONTRACTOR) ; or (2) CONTRACTOR shall provide satisfactory financial guarantee for payment of losses and related investigations, claim administration, and defense expenses. 8.4 Verification of Compliance. CONTRACTOR shall furnish CITY with original endorsements effecting coverage required by this Agreement. The endorsements are to be signed by a person authorized by the insurer to bind coverage on its behalf. All endorsements are to be received and approved by CITY before work commences. Not less than fifteen (15) days prior to the expiration date of any policy of insurance required by this Agreement, CONTRACTOR shall deliver to CITY a binder or certificate 4 • • of insurance with respect to each renewal policy, bearing a notation evidencing payment of the premium therefore, or accompanied by other proof of payment satisfactory to CITY. 9. Non -Liability of Officials and Employees of the CITY. No official or employee of CITY shall be personally liable for any default or liability under this Agreement. 10. Non -Discrimination. CONTRACTOR covenants there shall be no discrimination based upon race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement. 11. Independent Contractor. It is agreed that CONTRACTOR shall act and be an independent contractor and not an agent or employee of CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees. 12. Compliance with Law. CONTRACTOR shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government. 13. Ownership of Work Product. All documents or other information created, developed or received by CONTRACTOR shall, for purposes of copyright law, be deemed works made for hire for CITY by CONTRACTOR as CITY'S employee(s) for hire and shall be the sole property of CITY. CONTRACTOR shall provide CITY with copies of these items upon demand and in any event, upon termination or expiration of the term of this Agreement. 14. Conflict of Interest and Reporting. CONTRACTOR shall at all times avoid conflict of interest, or appearance of conflict of interest, in performance of this Agreement. 15. Notices. All notices shall be personally delivered or mailed to the below listed addresses. These addresses shall be used for delivery of service of process. a. Address of CONTRACTOR is as follows: Peter Wallerstein Whale Rescue Team 415 Topanga Canyon Blvd. Topanga, CA 90290 5 (with a copy to): b. Address of CITY is as follows: Chief of Police City of Manhattan Beach 1400 Highland Ave Manhattan Beach, CA 90266 City Attorney City of Manhattan Beach 1400 Highland Ave Manhattan Beach, CA 90266 16. Contractor's Proposal. This Agreement shall include CONTRACTOR'S proposal or bid which is incorporated herein. In the event of any inconsistency between the terms of the proposal and this Agreement, this Agreement shall govern. 17. Licenses, Permits, and Fees. CONTRACTOR shall obtain a Manhattan Beach Business License, all permits, and licenses as may be required by this Agreement. warrants that: Agreement. 18. Familiarity with Work. By executing this Agreement, CONTRACTOR (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the difficulties and restrictions of the work under this Agreement. Should CONTRACTOR discover any conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY and shall not proceed, except at CONTRACTOR's risk, until written instructions are received from CITY. 19. Time of Essence. Time is of the essence in the performance of this 20. Limitations Upon Subcontracting and Assignment. Neither this Agreement, or any portion, shall be assigned by CONTRACTOR without prior written consent of CITY. 6 • • 21. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement. 22. Indemnification. CONTRACTOR agrees to indemnify, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, attorneys and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees arising out of, or in any way connected with performance of, the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractor(s) hired by CONTRACTOR. This indemnity shall apply to all claims and liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR. 23. Modification. This Agreement constitutes the entire agreement between the parties and supersedes any other agreements, oral or written. No promises, other than those included in this Agreement, shall be valid. This Agreement may be modified only by a written agreement executed by CITY and CONTRACTOR. 24. California Law. This Agreement shall be construed in accordance with the laws of the State of California. Any action commenced about this Agreement shall be filed in the appropriate branch of the Los Angeles County Municipal or Superior Court. 25. Interpretation. This Agreement shall be interpreted as though prepared by both parties. 26. Preservation of Agreement. Should any provision of this Agreement be found invalid or unenforceable, the decision shall affect only the provision interpreted, and all remaining provisions shall remain enforceable. 27. Entire Agreement. This Agreement supersedes any and all other agreements, either oral or in writing, between the parties with respect to the subject matter herein. Each party to this Agreement acknowledges that representations by any party not embodied herein, and any other agreements, statements, or promises concerning the subject matter of this Agreement, not contained in this Agreement, shall not be valid and binding. Any modification of this Agreement will be effective only if it is in writing signed by the parties. Any issue with respect to the interpretation or construction of this Agreement is to be resolved without resorting to the presumption that ambiguities should be construed against the drafter. 7 • • 28. Attorneys' Fees. In the event that legal action is necessary to enforce the provisions of the Agreement, or to declare the rights of the parties hereunder, the parties agree that the prevailing party in the legal action shall be entitled to recover attorneys' fees and court costs from the opposing party. IN WITNESS THEREOF, the parties hereto have executed this Agreement on the day and year first shown above. ATTEST: City Clerk APPROVED AS TO /-10 City Attorney CONTRACTOR By CITY OF MANHATTAN BEACH By 8 July 22, 2004 Honorable Mayor and Members of The Hermosa Beach City Council Regular meeting of July 27, 2004 i WORK PLAN FOR THE 2004-05 FISCAL YEAR i The following list is not set in a priority order. This is a listing of items that City staff will be working on during the coming fiscal year. These items mirror the decisions that are contained in the 2004-05 budget and represent the work plan and schedule for these items to be considered by the City Council. They also represent the deployment of staff resources to accomplish these items in a focused approach so that the City Council and the community understand the tasks to be completed and tentative time frame in which they will be accomplished. While the list is deemed to be complete at this time, other items generally do surface during the year that require adjustment of this priority list, but this allows the City Council and staff to focus on the highest priority items and complete them in a timely manner. If an issue does arise during the year, the City Council can review the new item and determine whether or not it is of sufficient need to rearrange the priorities to allow staff to work on the new issue. As you are aware, there are several issues that have been discussed in the budget study sessions and at other times that require a long-term approach and consistent effort in order to bring them forward for decisions by the City Council and the community. This work plan will allow the City Council to focus on these issues and bring them to a conclusion in a timely manner. This will also allow the City Council to review and set out specific policy issues that you may wish to include or not include as specific projects or activities, once it has been outlined. It is important to also determine items that you do not feel are a priority and drop them from the work plan so the resources are not expended on items that do not fit the highest priorities. This should be viewed as a working document and, when a new issue comes up, the City Council will then have to determine where it fits on the list, whether it should be included at all or placed at the bottom of the list. This will allow the resources to be expended to complete the items and move down the list in an orderly fashion. In the long run, I believe that this approach will provide an opportunity to address more of the tasks and do so in a manner that keeps the expectations of what can be accomplished in line with our resources. ITEMS SUGGESTED IN THE BUDGET: Ambulance Transport Program: This is a project and issue that is designed to examine whether or not a different approach to ambulance transport through use of a private ambulance company should be employed. The potential that this represents may result in a cost saving or at least cost containment for this aspect of the fire/paramedic services that are provided by the City. It also will allow for a second simultaneous paramedic response, since the City will not be transporting the patient to the hospital. There are a 6d • • number of issues that will be covered in this project and, once the report is completed, will allow for full input from the City Council and community. This report will be done during the first quarter of the fiscal year and presented to the City Council in October, to begin the evaluation of whether or not this type of change to our existing program is something that we would like to implement. Grease Trap Ordinance: This is a proposal to add grease traps to all commercial businesses with a verifiable service program that will remove grease generated by the commercial enterprise before it enters the sewer system. The type of trap and approach for the installation by the businesses will be included in this project. Several other cities use this approach and they believe that it is quite effective in reducing grease in the sewer system, reducing the occurrence of blockages and sewer overflows. It also serves to extend the life of the sewer lines and therefore the long-term cost to the users. This work plan task will be completed during the first quarter for presentation to the City Council and the report will set forth the implementation guidelines. This will require some on- going staff time as the implementation effort will take several months once the ordinance and program is reviewed and approved by the City Council. A time line for this effort is attached. Street Light Removal: This is an effort to reduce the cost of the Street Lighting and Landscape District to the property owners that pay the annual assessment. The present assessment does not cover the costs. Instead of increasing the assessment, this project, if completely implemented, will reduce expenditures over a two-year period in order to bring the costs and revenues back in line. The effort will involve bagging approximately 50% of the streetlights and turning off the power for a period of several months. This will allow for a review of the reduction in lighting and, if determined to be acceptable by the City Council, the eventual removal of the street lights and poles. This project will begin as soon as feasible after the adoption of the budget in order to receive the savings projected by reduced energy charges. The project will be reviewed and presented to the City Council following the test period in November. If it is determined to proceed with the removal of streetlights, this process could begin in the first quarter of 2005. This project has the potential of generating a great deal of public input during the test phase. Street Improvement Plan: The city has completed a street pavement analysis which will form the basis of a new five-year plan. Staff has discussed during the budget study sessions a different concept that hopefully will allow a more comprehensive plan to refurbish all streets within a five -to -seven year time period. The plan is to divide the City into five to seven zones so that a zone can be completed each year. The number of zones depends upon funding availability. After all zones have been refurbished an annual slurry program will continue by zone. As you know, the backlog of repair work on our streets is quite high and while a great deal of work has been done, we need to have a realistic plan that can be funded and implemented. This plan will be completed during the first quarter of the fiscal year. The goal is to implement the first zone later in the fiscal year. The key to this is funding and this plan, when presented, will propose the funding on an ongoing basis. This will help make future decisions easier in a number of policy areas if the plan is funded and realistic. • • Smart Parking Meters/Parking Program Changes: This is an effort to determine whether or not there are other methods to increase the income from the parking meters and parking lots operated by the City. This will include the evaluation of the so-called Smart Meters and the operation of the parking lots to determine whether or not installation of meters would result in additional income or reduced costs. There are a number of issues to be considered and it is likely that this effort will be split into two phases. The Smart Meters being the first task and the review of the parking lots the second. This project will begin during the first quarter and be completed in the second quarter. Implementation will follow if any changes are approved. Policy Initiatives: The Beach Cities Transit Plan is being coordinated by Redondo Beach. This initiative would replace the Wave Program with a mix of fixed route and specialized dial -a -ride service. The City of Hermosa Beach would continue to offer an expanded taxi voucher program to qualifying residents. This change needs the additional attention of a City Council subcommittee to work with the other council members from both Redondo Beach and Manhattan Beach. The time line set for returning with additional information by Redondo Beach is late August. If the City Council remains interested in this program, it would seem to be the best way to move the project along. If there is no interest, then staff needs to be provided with some clear direction of where we wish to go with the Wave program and move out on our own. Almost any decision will involve a lead-time of several months to provide notice and change the programs. Historic Preservation Program/1% for the Arts: This policy initiative was brought up at the City Council Budget study session and concerns the 1% for the Arts and the Mayor's Select Committee concerning developing a comprehensive historic preservation ordinance. The work begins with a report that will outline the process of developing a fee-based program. The report will include the estimated amount that such a program would generate and what the various costs would be to operate such a program. In addition, the report will also describe the current effort being undertaken by the volunteer committee and what it will take to move forward with a comprehensive historic preservation ordinance. The report will serve as a beginning point for these issues. A time line is attached for these initiatives and if approved by the City Council a budget and start date will be assigned. General Plan Planning Commission/Residents Committee: This is another effort that is being done on a somewhat ad hoc basis. The group working on this is relying on the City Council acknowledgement that no funding would be available. This remains the case and as a result staff needs further direction on how we work with this group and the effort that they are doing on a volunteer basis. The City Council needs to assign this as a task to staff and fit it into the work plan or leave the effort entirely volunteer. Updating a General Plan is a major effort for a city and doing so without strong City Council direction is probably not the best way to proceed. A time line is attached for this effort. If approved by the City Council a budget and start date will be assigned. • • Planning Code Changes: There are several code changes that are ready to be processed. Since these take such a great deal of time to get through, staff would suggest that a special meeting be set to clear these items and determine whether or not the City Council wishes to make the code changes that the Planning Commission has recommended. A list is attached that details these items. Many of these items have been approved by the Planning Commission and others are the Planning Commission direction to staff indicating the Commission interest in pursuing a revision or amendment to the current regulations. PCH/Cal Trans Relinquishment: This study and effort will produce a report to consider whether or not to take responsibility for PCH within the city limits. This is being done to continue our good faith effort that we started with Cal Trans to continue to hang the commercial -type banners while we are processing the relinquishment. The report will include a detailed analysis of the condition of the roadway, traffic signals and other facilities that are the responsibility of Cal Trans. A consultant will be hired to perform. pavement deflection testing and to assist staff in master planning capital needs assessments for PCH. The cost of the consultant would be rolled in the settlement if we proceed but will be our cost if we do not complete the process or fail to agree with Cal Trans on a fair number for taking over the highway. This will be brought to the City Council for a decision in October 2004. It will take until March 2005 to complete a study that we could act on. Underground Districts -----Ongoing staff work: Here are the statuses and expected dates for each of the districts to proceed to the next step. A fair amount of staff time is spent each year on these projects and an expectation is created with the residents that the City will move these projects along as a high priority. The Beach Drive Assessment District formation process has been completed and construction is being set to begin in September; the. Bayview District is in the formal assessment formation process and will be completed and brought to a vote in January 2005; the Bonnie Brae District is now in design by the telephone company and will next go to the cable company for design, this could be completed by the end of 2004 and then be ready to go to the formal assessment formation process; the Prospect District is currently with SCE for design and should be finished this summer, it would next go to Verizon and Adelphia for design, this effort will probably take another 12 months. Upper Pier Avenue Project: This project has been waiting for funding and it appears that we will have enough funds to begin the planning and design stage this fiscal year. This effort will involve the property owners along the Avenue and a determination will need to be made on the various design elements that have been mentioned for years. This includes wider sidewalks, two travel lanes (one in each direction), median strip etc. The Public Works Commission will hold a public workshop to discuss design options for the project and forward a recommendation to council by January 2005. Construction could start in the fall of 2005. • • Aviation Tree Planting Effort: This project should be installed in the second quarter of 2004-05 fiscal year. This is a volunteer/staff effort that has had involvement by a number of businesses in the area. The overall cost of this project is modest and as a result every effort should be made to fund this and get it installed. We need a new cost estimate and some idea of how much the community will kick in so we can recommend that the City Council at least match it. WiFi Hermosa Beach: Completion of the Phase One project will occur by August 11. The second phase will be brought to the City Council to consider moving forward. Additional funding and staffing will be required to move to a complete deployment. Cable TV Franchise Renewal: This will get started this summer and finish by March 2005. This will require an extension of the current franchise by about 6 months. The notices inviting residents to apply to serve on the Cable TV committee will be sent out at the end of July. Recycling Program: This is really an ongoing program that requires regular activity by staff, our consultant and the trash company. Programs that will be implemented include a cooperative effort with the school district to use AB939 funds to purchase recycling containers for their schools; a public information magnet to be distributed to all residents in the city; and a renewed effort to work with commercial properties to increase recycling. In addition, the trash company is developing a plan to increase our diversion rate by using alternate disposal methods. A great deal of effort will be spent during the first and second quarter to increase our diversion rate. Trash Ordinance revisions: This effort in a way goes along with the recycling program but is more of quality of life issue. The trash can storage ordinance was adopted by the city in the early 1970's and needs to be reviewed and updated so that it can be enforced in a reasonable manner. This would be a project that would get started in the second quarter and completed for City Council action in the first quarter of 2005. Police/Fire/Government Buildings: Replacement/Upgrade planning effort is often discussed but right now no work is being done on it. The 2004-05 budget does include some upgrades for the Fire Station, which will result in improvements to operation and living areas. The City Yard is budgeted for the removal of the oil well, which will allow the use of this area. The Police Station has only minor maintenance work being done. It was last renovated in the early 1990's. The Community Center has had a variety of improvements made over the last several years and a few more are in the planning stages. What the City does not have is any kind of master plan of what we need to be able to deliver services. The development of this type of plan is important so we can begin to plan and take advantage of opportunities or grants that might be available. A plan like this can be done on a department -by -department basis. The plan completed for the Fire Department details the amount of space that would be ideal for an operation the size of ours. It does not have a funding plan or a way of moving to the next step in such a process. The police and public works/city yard need such a plan. Once we have these plans, we need a way of developing or setting aside the funds to construct them. This is a • • long-term approach and one of the other cities has used a special citizens committee to study, develop, and propose a funding solution. In the event the special citizens committee recommends a bond issue to fund all or a portion of the replacement or expansion projects, it would be easier to develop community acceptance for the additional costs. If there is not a recommendation to ask the voters to pay extra for the projects, staff will have a funding goal to meet and the City Council can begin setting aside funds for the projects. Since these projects take a long time to build the consensus to actually design and construct a new building or renovate a building, it is important to set a long term goal to begin working on the concept. It may be that once we get started on the idea of approaching our building needs on this basis, we can do more than we think or there may other ideas that reduce the costs or the needs. In any case, it is important to start and, with City Council direction, we can begin. The point here is to begin looking at the issue and determine whether or not there is a need to do anything. Right now, there is not a plan to proceed with anything beyond what is included in the budget. Respectfully submitted, Stephen R. Burrell City Manager • • Zoning Ordinance Changes Ordinance Tasks 1. Nonconforming Ordinance - 2. Parking Ordinance- Garage Entries 3. CUP/PDP Ordinance 4. Yard, Height & Area Restrictions 5. Definitions — Dwelling Unit 6. C-3 Mixed Use Development 7. Height Restrictions — Chimney Height 8. PDP Ordinance -Pervious Concrete Paving Revise threshold for smaller projects to encourage building retention and revise format and ordinance organization for clarity. Revise to establish uniform clearance requirements for garages, garage entries and driveways leading to garages. Establish uniform expiration periods and criteria for expiration for Conditional Use Permits and Precise Development Plans and other discretionary permits. Revise to allow solar electric equipment and water systems to exceed the allowable height in the zone under exception criteria. Establish workable definition of dwelling unit for code enforcement purposes, that includes definition of kitchens and illegal, dwelling units. Establish mixed use development standards for C-3 commercial zones similar to C-1 mixed use ordinance. Establish uniform requirements allow heights for chimney construction which exceeds the height limit of the zone. Amend PDP requirements for pervious concrete paving as an alternative to standard concrete paving along walks and driveway. • • Grease Trap Ordinance Task City Council Work Plan Department Timing 1. Research Other City Ords. 2. Draft City Ord. 3. Draft Staff Report 4. City Council Ord. Approval 5. Provide Public Notice to Area Businesses 6. Provide Public Information 7. Construction Implementation* 8. Inspections CDD, PWD CDD, PWD, FD, CA CDD, PWD, FD, CA CDD, PWD, CM CDD, PWD, FD, CM CDD, PWD, FD CDD, PWD, FD FD 4 Weeks 2 Weeks 2 Weeks 4 Weeks 2 Weeks 2 Weeks On-going per mandatory compliance deadlines. Requires several months of private construction by area businesses, construction inspection and approval by CDD on private property. Also requires approval of grease interceptor installations in alleys in downtown area with PWD coordination and approval. Annually from Ord. anniversary date. *Total City Staff Project Time (1-6) 16 Weeks (4 months) * (Does not include construction time for businesses and on public property) General Plan Update- Visioning Task Department Timing 1. Conduct Visioning meetings and workshops with community. 2. Research other city G.P's. Visioning programs. 3. Prepare Visioning matrix and documentation. 4. Prepare information Web -site 5. Prepare advertisements, meeting notices, Web site updates, correspondence and meeting schedules. 6. Prepare Visioning questionnaire and distribute. 7. Prepare preliminary budget 8. Prepare Planning Commission workshop summaries' for discussion at Commission. 9. Coordinate identification of planning district boundaries. Notice meeting, retain architect assistance, schedule room. 10. Conduct planning district boundary workshop. Mapping and documentation 11. Document workshop results. 12. Prepare report to Planning Commission 13. Prepare report to City Council. 14. Submit request to fund remainder of project to City Council. CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD CDD On-going 4 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks. 2 Weeks 2 Weeks 2 Weeks 2 Weeks 2 Weeks Total Staff Time 26 Weeks (6.5 Months) Historic Preservation Program Task 1. Research other city programs, correspondence, and receive program information. 2. Draft City program with subcommittee input. 3. Draft staff report 4. Draft and issue RFP for consultant services for survey and project plan reviews. 5. Prepare staff report with evaluation of proposals & preparation of program cost estimate. 6. City Council selection of consultant for surveys & private plan reviews. 7. Conduct citywide or area -wide historic preservation survey & prepare documentation. 8. Prepare public information public notice to residents w/ citywide mailing. 9. Revise other zone codes as required (eg. Nonconforming Ordinance, PDP, etc.) 10. Staff training on program requirements 11. Construction implementation 11. Inspections Department CDD, CDD, CA CDD, CM CDD CDD Consultant CDD CDD, PWD, FD, CM CDD, PWD CDD, PWD CDD, PWD, CDD, PWD Timing 4 Weeks 2 Weeks 2 Weeks 8 Weeks 2 Weeks 4 Months* 2 Weeks 6 Weeks 2 Weeks On-going per voluntary compliance project submittals. Requires as -needed project reviews by private architectural historian to ensure building reconstruction complies with historic survey requirements. Consultant reviews plans and provides on- site inspections and coordinates with inspection staff. Funding for consultant by program participants or by City. Inspection coordination with consultant on historic character defining features and allowable improvements. Total City Staff Project Time * (Excluding Consultant Survey Time) 28 Weeks (7Months) • • 1% Arts Program Task Department 1. Research other city programs, correspondence, CDD, receive program information & review. Timing / Notes 2. Draft City program & establish fee schedule. CDD, CA 3. Draft staff report amending Zone Code CDD, CM, CA and amended fee schedule. Establish criteria for accepting art, art siting or in lieu program, arts commission or other decision body, art on private and/or public property. 4. Amend application forms for PDP and Condos CDD/PWD and other permits as required. 5. Prepare public information public notice to CDD residents and developers w/ citywide mailing. CDD, PWD, CM 6. Staff training on program requirements CDD, PWD 7. Construction implementation CDD, PWD, 11. Inspections CDD 6 Weeks 4 Weeks 4 Weeks 2 Weeks Cities: San Diego, L.A. Long Beach San Jose, Sacramento, Phoenix, Dallas, Chicago, Miami Prop 218 Issue? 2 Weeks 2 Weeks On-going per mandatory compliance w/projects. Requires as -needed project reviews by arts commission and planning commission to ensure building projects are complying w/ordinance and art works are implemented. Inspection coordination with arts commission. Total City Staff Project Time 20 Weeks (5 Months) Honorable Mayor and Members of the Hermosa Beach City Council July 27, 2004 City Council Meeting July 27, 2004 )7/DY SUPPLEMENTAL TO ITEM 6e - RESOLUTION OF ISSUANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH AUTHORIZING THE ISSUANCE AND SALE OF A LIMITED OBLIGATION IMPROVEMENT BOND FOR ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) Attached is the Resolution Authorizing the Issuance and Sale of a Limited Obligation Improvement Bond with the buyer's name (Piper Jaffrey), interest rate (4.80%) and unpaid assessment amount filled in (it is a strike -through copy so you can see what was changed.) Until the prepayment period was over yesterday, the amount for the bond was not known. A letter from our financial advisor regarding current market conditions and the interest rate received on the bond is also attached as page 23. A Bond Purchase Agreement, which is the standard document in this type of sale, is also attached and will be signed tomorrow by the City Manager upon your approval tonight of the resolution. Respectfully submitted, 4 / • 1 i !1__� Viki Copeland Finance Director SUPPLEMENTAL INFORMATION 6 e F:\B95\FINANCE1\Beach Drive Bond Purch-Supplemental.doc RESOLUTION NO. 04 - RESOLUTION OF ISSUANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH AUTHORIZING THE ISSUANCE AND SALE OF A LIMITED OBLIGATION IMPROVEMENT BOND FOR ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) WHEREAS, on April 27, 2004 this City Council of City of Hermosa Beach (the "City") adopted Resolution No. 04-6334 (the "Resolution of Intention") declaring its intention, pursuant to the provisions of Division 12 of the Streets and Highways Code of the State of California, the Municipal Improvement Act of 1913 and Chapter 28, Part 3 of Division 7 of the Streets and Highways Code of the State of California, to order the acquisition and construction of under - grounding existing power and telephone lines, and appurtenances and appurtenant work and incidental costs and expenses in connection therewith and to form Assessment District No. 2004-1 (Beach Drive); and WHEREAS, the Resolution of Intention provides for the issuance of bonds in the manner provided by Division 10 of the Streets and Highway Code of the State of California, the Improvement Bond Act of 1915 (the "Act"), to represent and be secured by unpaid assessments; and WHEREAS, pursuant to Resolution No. 04-6335, adopted by the City Council on April 27, 2004, a hearing was held on June 22, 2004 on the questions of the formation of Assessment District No. 2004-1 (Beach Drive) (the "Assessment District") and the issuance of bonds and at said hearing the City Council received a majority vote of the property owners within the Assessment District for the formation of the Assessment District and the issuance of bonds for the unpaid assessments; and WHEREAS, by. its Resolution No. 04-6343, adopted on June 22, 2004, this City Council confirmed the assessment and diagram for Assessment District No. 2004-1 (Beach Drive); and WHEREAS on July 27, 2004, the City Council adopted Resolution No. 04 - determining that the unpaid assessments total $404,341.42 ; and WHEREAS, it is necessary and desirable that the City sell bonds to be issued to represent the unpaid assessments; and WHEREAS, Piper Jaffray & Co. has offered to purchase such bonds, in the form of a single installment payment bond, and this City Council wishes to approve the sale of the bond to Piper Jaffray & Co. in accordance with its offer as set forth in the Bond Purchase Agreement dated as of July 28, 2004 NOW, THEREFORE, the City Council of City of Hermosa Beach, DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER as follows: SECTION 1. Definitions. Unless the context otherwise requires, the following terms shall have the following meanings: • • "Administrative Expense Requirement" means an amount, not in excess of the aggregate maximum annual assessment for Administrative Expenses permitted to be levied within the Assessment District as set forth in the Engineer's Report, to be specified each year by the Finance Director to be used for Administrative Expenses. "Administrative Expenses" means the ordinary and necessary fees and expenses for determination of the Assessment and administering the levy and collection of the Assessment and servicing, pay and prepay the Bond, including any or all of the following: the fees and expenses of the Treasurer, the expenses of the City in carrying out its duties hereunder (including, but not limited to, annual audits and costs incurred in the levying and collection of the Assessment) including the fees and expenses of its counsel and all other costs and expenses of the City incurred in connection with the discharge of their respective duties hereunder and, in the case of the City, in any way related to the administration of the Assessment District. "Assessment" or "Assessments" means the special assessments levied in the Assessment District in accordance with the 1913 Act and the Resolution of Intention, together with the net proceeds derived from any foreclosure proceedings and interest and penalties thereon. "Assessment District" means Assessment District No. 2004-1 (Beach Drive). "Assessment Installment" means the annual portion of the Assessment required to amortize the Bond and pay the Administrative Expenses. "Authorized Investments" means, subject to applicable law, (1) Federal Securities; (2) an Investment Agreement, including GICs, acceptable to, and approved in writing by, the Finance Director; (3) taxable government money market portfolios rated in one of the two highest rating categories by Standard & Poor's Rating Services restricted to obligations with maturities of one year or less, insured or fully guaranteed as to the principal and interest thereon by the full faith and credit of the United States of America or by repurchase agreements collateralized by such obligations; (4) tax-exempt obligations, including tax exempt money market funds, rated at least "A" or higher by Standard & Poor's Rating Services and Moody's Investors Service; (5) commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investors Service and Standard & Poor's Rating Services, limited to issuing corporations that are organized and operating within the United States and having total assets in excess of five hundred million dollars ($500,000,000) and having an "A" or higher rating for such corporation's debt, other than commercial paper, as provided for by Moody's Investors Service and Standard & Poor's Rating Services and which may not exceed 180 days maturity nor represent more than 10% of the outstanding paper of an issuing corporation; (6) notes, bonds or other obligations which are at all times secured by a perfected first security interest in securities of the types listed by Section 53651 of the California Government Code as eligible securities for the purpose of securing local agency deposits or which are listed as an Authorized Investment under any of the clauses (1) through (5) of this definition (except those described in this clause (6)) and which have a market value, determined at least weekly, at least equal to 102% of the amount of principal and accrued interest on such obligation, which shall be placed by delivery into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation and which bank shall be responsible for making any market value determinations, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted; (7) any other investment in which funds of the District may be legally invested pursuant to Government Code • • Section 53635; (8) repurchase agreements secured by Federal Securities; and (9) time or demand deposits fully insured by the Federal Deposit Insurance Corporation or with institutions rated in one of the two highest rating categories by Moody's Investors Service or Standard & Poor's Rating Services. "Bond" means the City of Hermosa Beach, Limited Obligation Improvement Bonds Assessment District No. 2004-1 (Beach Drive) issued pursuant to the Resolution. "Bond Counsel" means an attorney or a firm of attorneys, selected by the City, of nationally recognized standing in matters pertaining to the tax treatment of interest on bonds issued by states and their political subdivisions, duly admitted to the practice of law before the highest court of any state of the United States of America or the District of Columbia. "Bond Register" means the books which the Treasurer shall keep or cause to be kept pursuant to Section 10, on which the registration and transfer of the Bond shall be recorded. "Bond Year" means the one year period or shorter period ending each year on Septemberll 2, or such other date as may be specified by the District in the Tax Certificate. "Bond Owner" or "Owner" means the person or firm in whose name the Bond is registered as shown on the Bond Register. "Business Day" means any day of the year in New York, New York or Los Angeles, California other than a Saturday, Sunday, a day on which the New York Stock Exchange is closed or any day on which the Paying Agent is not open for business. "City" means the City of Hermosa Beach. "City Clerk" means the City Clerk of the City or his or her designee. "Closing Date" means the date of delivery of the Bond by the City and payment therefor by the original purchaser thereof. "Code" means the Internal Revenue Code of 1986, as amended. "County" means the County of Los Angeles. "Engineer's Report" means the report concerning the Assessment District prepared by David Taussig & Associates, Inc., as approved by the Board of Directors on June 22, 2004 and on file with the City Clerk. "Federal Securities" means, subject to applicable law, United States Treasury notes, bonds, bills or certificates of indebtedness, including United States Treasury Obligations, State and Local Government Series ("SLGS") or other direct obligations issued by the United States Treasury for which the faith and credit of the United States are pledged for the payment of principal and interest; and obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley Authority, or other federal agencies or United States Government-sponsored enterprises. "Finance Director" means the Finance Director of the City or his or her designee. "Fiscal Year" means the twelve-month period terminating on June 30 of each year, or any other annual accounting period hereafter selected and designated by the City as its Fiscal Year in accordance with applicable law. "Improvements" means the acquisition and construction of the Improvements set forth in the Engineer's Report. "Interest Payment Date" means each March 2 and September 2, commencing March 2, 2005. "Investment Agreement" means one or more agreements entered into between the City and an entity or entities whose long term uninsured, unsecured and unguaranteed debt or claims -paying ability is rated as of the date of the Investment Agreement in either of the two highest categories (without regard to gradations of plus and minus within such categories) by Standard & Poor's Rating Services or Moody's Investors Service, or an Investment Agreement between the District, and an entity which is rated as of the date of the Investment Agreement in either of the two highest categories (without regard to gradations of plus and minus within such categories) by Standard & Poor's Rating Services or Moody's Investors Service. "1913 Act" means the Municipal Improvement Act of 1913, being Division 12 (commencing with Section 10000) of the California Streets and Highways Code. "1915 Act" means the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the California Streets and Highways Code. "Owner" means, with respect to the Bond, the person shown as the owner thereof in the Bond Register. "Purchase Agreement" means the bond purchase agreement authorized and executed by the City Manager and Piper Jaffray & Co. "Record Date" means the fifteenth day of the month preceding an Interest Payment Date, whether or not such day is a Business Day. "Resolution" means this Resolution of Issuance. "Reserve Requirement" means an amount equal to $3,000 which requirement shall be in cash or Authorized Investments as provided in this Resolution. "Resolution of Intention" means Resolution No. 04-6334, adopted by the City Council of the City on April 27, 2004, stating the City's intention, among other things, to issue the Bond. "Resolution of Issuance" means Resolution No. 04- adopted by the City Council of the City on July 27, 2004, authorizing the issuance of the Bond. "Superintendent of Streets" means the Director of Public Works or his or her designee. "Tax Certificate" means the Tax Certificate delivered upon the issuance of the Bond. "Tax -Exempt" means, with reference to an Authorized Investment, as Authorized Investment described as a tax-exempt obligation in the Tax Certificate. "Treasurer" means the Treasurer of the City or his or her designee. SECTION 2. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular shall include the plural, and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and shall be deemed to mean and include the neuter, masculine or feminine gender, as appropriate. (b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof. SECTION 3. Pledge of Assessments; No Obligation to Cure Deficiency. Pursuant to the 1913 Act, the 1915 Act and this Resolution, the payment of the interest on and principal of the Bond and any premiums upon the prepayment thereof shall be exclusively paid from the Assessments and moneys on deposit in the Redemption Fund and the Reserve Fund which are hereby set aside for the payment of the Bond. The Assessments and any interest earned on the funds established herein shall constitute a trust fund held for the benefit of the Owner of the Bond to be applied to the payment of the interest on, premium, if any, and principal of the Bond and so long as principal and interest on any of the Bond remains unpaid shall not be used for any other purpose, except as permitted by the 1913 Act, the 1915 Act or this Resolution. Pursuant to Streets and Highways Code Section 8769, this City Council provided in the Resolution of Intention that the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the Redemption Fund to be established for the payment of the Bond. SECTION 4. Unpaid Assessments. The assessments now remaining unpaid, and the aggregate thereof, are as shown on the list of unpaid assessments on file in the office of the Treasurer of the City, in the aggregate amount of $404,341.42 . For a particular description of the lots or parcels of land bearing the respective assessment numbers upon which assessments remain unpaid, severally and respectively, reference is hereby made to the assessment and to the diagram recorded in the office of the Superintendent of Streets. SECTION 5. Issuance of the Bond. The Bond shall be issued upon the security of said unpaid assessments in the aforesaid amount, in accordance with the provision of Division 10 of the Streets and Highways Code of the State of California and the proceedings thereunder duly had and taken, for the purpose of issuing the Bond. Said Bond shall be designated "United States of America, State of California, County of Los Angeles, City of Hermosa Beach, Limited Obligation Improvement Bonds, Assessment District No. 2004-1 (Beach Drive)", and shall be in the denomination of $404,341 with principal amounts maturing on September 2 of each year as hereinafter set forth: • • BOND BOND MATURING AMOUNT ' MATURING AMOUNT 2005 $11,492 20155 $20,010 2006 13,122 20169 20,970 2007 13,752 201270. 21,977 2008 14 412 2018202-1- 23,032 2009 15,104 20192022 24,1.37 2010 15,828 20202023 25,296 2011 16,588 20212024 26,510 2012 17,385 20222026 27,783 2013 18,219 20232026 29,116 2014 19,094 20212027 30,514 20-15 2028 2016 2029 201-2 2030 The Bond shall be in the form of a fully registered Bond without coupons and shall be initially dated the delivery date. The Bond shall be substantially in the form set forth in Exhibit "A" hereto attached and by reference made a part hereof. SECTION 6. Interest. The Bond shall bear interest on the unpaid principal amount thereof at the rate of 4.80 % per annum, payable on March 2, 2005, and semiannually thereafter on September 2 and March 2 of each year. Interest on the Bond shall be calculated on the basis of 360 - day year consisting of twelve 30 -day months. The Bond shall bear interest from the interest payment date next preceding the date of registration thereof unless: (i) it is registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or (ii) it is registered on or prior to February 15, 2005, in which event it shall bear interest from the date thereof. Registration of the Bond issued upon exchanges and transfers the Bond shall be dated so that no gain or loss of interest shall result from the exchange or transfer. Interest and principal on the Bond shall be paid by the Treasurer by check mailed on the interest payment date to the registered owner of the Bond as the name and address appear on the register kept by the Treasurer at the close of business on the fifteenth (15th) day of the month preceding the interest payment date. The Bond shall continue to bear interest after maturity at the rate stated therein, provided that payment thereof is refused on the sole ground that there is not sufficient money in the Redemption Fund hereinafter referred to with which to pay same. SECTION 7. Execution and Authentication. The Bond shall be signed on behalf of the City by the Treasurer and the City Clerk and the corporate seal of the City shall be affixed to the Bond. Such signatures and the City seal may be reproduced on the Bond by engraved, printed, typed or lithographed facsimile thereof, and such signing and sealing shall constitute and be a sufficient and binding execution of the Bond. If any officer whose signature appears on the Bond ceases to be such officer before the delivery of the Bond to the purchaser, such signature shall be as valid as if such officer remained in office until the delivery of the Bond. The Bond shall have typed, printed or engraved thereon a certificate of authentication and registration, substantially in the form set forth in Exhibit "A," hereto attached and by reference made • • a part hereof, duly executed by manual signature of the Treasurer. The Bond shall not be valid or obligatory for any purpose under this Resolution unless and until such certificate of authentication and registration shall have been duly executed by the Treasurer, and such certificate of the Treasurer upon any the Bond shall be conclusive and the only evidence that the Bond has been duly authenticated and delivered under this Resolution. SECTION 8. Manner and Place of Payment. The principal on the Bond shall be payable in lawful money of the United States of America. Interest and principal on the Bond shall be paid by the Treasurer by check as provided in Section 6 of this Resolution. Bond. SECTION 9. Provisions for the Prepayment of All or a Portion of the Principal of the (a) Prepayment from Assessment Prepayments. On an Interest Payment Date, money in the Prepayment Account of the Redemption Fund from the proceeds of prepayments of Assessments, a portion of the principal amount of the Bond shall be called for prepayment as provided in Part 11.1 of the 1915 Act and this Resolution. The Bond, or any portion of the principal thereof in inverse order of maturity, may be prepaid in advance of maturity on any Interest Payment Date in any year by giving notice to the Owner thereof as provided in this Resolution and by paying the principal amount thereof, plus interest to the date of prepayment, together with a prepayment premium equal to three percent (3.00%) of the principal of the Bond to be prepaid. Nothing in this Resolution shall preclude the prepayment prior to maturity of the Bond from proceeds of a refunding bond or bonds issued under the Refunding Act of 1984 for 1915 Improvement Act Bonds or under any other law of the State of California. (b) Selection of the Maturity Bonds for Prepayment. If less than all of the Bond is to be prepaid, the Treasurer shall designate the principal amount of a maturity to be prepaid. (c) Notice of Prepayment. When any principal amount of the Bond is to be called for prepayment under this Section, the Treasurer shall give notice, in the name of the City, of the prepayment of such principal amount of the Bond. Such notice of prepayment shall (A) specify the portion of a maturity and the maturity date or dates of the Bond selected for prepayment, except that where the Bond in its entirety is subject to prepayment, the maturity dates need not be given; (B) state the date fixed for prepayment; and (C) state the prepayment price. Such notice shall further state that on the date fixed for prepayment, there shall become due and payable on the Bond or portion thereof called for prepayment, the principal thereof, together with any premium, and interest accrued to the prepayment date, and that from and after such date, interest thereon shall cease to accrue and be payable. At least thirty (30) days but no more than sixty (60) days prior to the prepayment date, the Treasurer shall mail a copy of such notice, by registered or certified mail, postage prepaid, to the Owner of the Bond a portion of which is to be prepaid at their addresses appearing on the Bond Register. The actual receipt by the Owner of the Bond of notice of such prepayment shall not be a condition precedent thereto, and failure to receive such notice shall not affect the validity of the proceedings for the prepayment of the Bond or any principal amount thereof, or the cessation of interest on the prepayment date. A certificate by the Treasurer that notice of such prepayment has been given as herein provided shall be conclusive as against all parties. (d) Effect of Notice and Availability of Prepayment Money. Notice of prepayment having been duly given, as provided in this Section, and the amount necessary for the prepayment • • having been made available for that purpose and being available therefor on the date fixed for such prepayment: (i) the Bond, or portions thereof, designated for prepayment shall, on the date fixed for prepayment, become due and payable at the prepayment price thereof as provided in this Resolution, anything in this Resolution or in the Bond to the contrary notwithstanding; (ii) the Treasurer shall pay to the Owner of the Bond the prepayment price and shall keep a record of the prepayment, which record shall be conclusive evidence of such prepayment; (iii) after the prepayment date the Bond or portions thereof so designated for prepayment shall be deemed to be no longer outstanding and the Bond or said portions thereof shall cease to bear further interest; and (iv) after the date fixed for prepayment the Owner of the Bond as to the principal amount thereof so designated for prepayment shall not be entitled to any of the benefits of this Resolution, or to any other rights, except with respect to payment of the prepayment price and interest accrued to the prepayment date from the amounts so made available. SECTION 10. Bond Register, Transfer and Registration. The Bond issued under this Resolution shall be subject to the provisions for registration and transfer contained in this Resolution and in the Bond. So long as any of the Bond shall remain outstanding, the Treasurer shall maintain and keep, at its office in Hermosa Beach, California, a Bond Register, being sufficient books for the registration or transfer of the Bond, and, upon presentation of the Bond for registration or transfer at said office, the Treasurer shall register or cause to be registered therein, and permit to be transferred thereon, under such reasonable regulations as the City or the Treasurer may prescribe, the Bond entitled to registration or transfer. So long as any of the Bond remains outstanding, the City shall make all necessary provisions to permit the exchange of the Bond at said office of the Treasurer. SECTION 11. Transfer of Bond. (a) The Bond shall be transferable only upon the Bond Register of the Treasurer referred to in Section 10 of this Resolution by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof, together with a written instrument of transfer satisfactory to the Treasurer duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any the Bond, the Treasurer shall issue in the name of the transferee a new Bond of the same aggregate principal amount and maturity, except for any maturity or portion thereof prepaid, as the surrendered Bond. (b) The Treasurer may deem and treat the person in whose name the outstanding Bond shall be registered upon said Bond Register of the Treasurer as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal, or prepayment price, if any, of and interest on such Bond and for all other purposes. All such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Treasurer shall be affected by any notice to the contrary. • • SECTION 12. Regulations with Respect to Exchanges and Transfers. In all cases in which the privilege of exchanging or transferring Bond is exercised, the City shall execute and the Treasurer shall authenticate and deliver the new bond in accordance with the provisions of this Resolution. The Bond surrendered in any such exchanges or transfers shall be canceled and retired by the Treasurer or destroyed as permitted by law. For every such exchange or transfer of the Bond, whether temporary or definitive, the Treasurer may impose a charge sufficient to reimburse them for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer (other than such as may have been imposed by the City), which sum or sums shall be paid by the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The Treasurer shall not be required to make any such exchange or registration of transfer during the fifteen days immediately preceding any March 2 or September 2. SECTION 13. Mutilated, Destroyed, Stolen or Lost Bond. In case the Bond shall become mutilated or be destroyed, stolen or lost, the City shall execute and the Treasurer shall authenticate and deliver a new Bond of like maturity and principal amount, except for any maturity or portion thereof prepaid, as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such a mutilated Bond, upon surrender and cancellation of the mutilated Bond or in lieu of and in substitution for a destroyed, stolen or lost Bond, upon filing with the Treasurer evidence satisfactory to the Treasurer that the Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Treasurer with indemnity satisfactory to each, complying with such other reasonable regulations as the Treasurer may incur. The Bond so surrendered to the Treasurer shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 14. Preparation of the Definitive Bond; Temporary Bond. The definitive Bond shall be typed on security paper, lithographed or printed on steel engraved borders at the option of the City. Until the definitive Bond is prepared, the City may execute, in the same manner as is provided in Section 7, and the Treasurer may authenticate and deliver, in lieu of the definitive Bond, but subject to the same provisions, limitations and conditions as the definitive Bond. The temporary Bond (which shall be registered as to principal and interest), substantially of the tenor of the definitive Bond in lieu of which such temporary Bond is issued and with such omissions or insertions of and variations from the terms and conditions thereof as may be appropriate to temporary Bond. The City at its expense shall prepare and execute, and the Treasurer upon the surrender of such temporary Bond for exchange and the cancellation of such surrendered temporary Bond, without charge to the holder thereof, shall authenticate and deliver in exchange therefor, at the office of the Treasurer in Hermosa Beach, California, the definitive Bond of the same aggregate principal amount and maturity as the temporary Bond which shall in all respects be entitled to the same benefits and security as definitive Bond issued pursuant to this resolution. All temporary Bond surrendered in exchange for the definitive Bond shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 15. Redemption Fund. The City shall keep a Redemption Fund designated Assessment District No. 2004-1 (Beach Drive) Redemption Fund (the "Redemption Fund"). All sums received by the Treasurer from the collection of the Assessments and of the interest and penalties thereon shall be deposited in the Redemption Fund, except the amount of delinquent Assessments that are deposited in the Reserve Fund to replace amounts withdrawn from the Reserve Fund to pay debt service because of delinquencies and the money deposited in the Administrative • • Expense Fund. The City shall disburse moneys from the Redemption Fund to pay the principal and interest on the Bond when due thereon. SECTION 16. Prepayment Account. Moneys set aside in the Prepayment Account, which the City shall establish in the Redemption Fund, shall be used solely for the purpose of prepaying all or a portion of the principal amount of the Bond and shall be applied on or after the prepayment date to the payment of principal of and premium, if any, on the principal Bond to be repaid. Upon receiving any prepayment of an Assessment, the Treasurer shall deposit such prepayment in the Prepayment Account, which when coupled with the moneys transferred from the Reserve Fund pursuant to Section 19 to the Prepayment Account, shall be used, to redeem Bonds on the next Interest Payment Date for which proper notice pursuant to Section 9 can be given by the Treasurer. If less than all of the prepayment of an Assessment, together with the money transferred from the Reserve Fund, can be used to redeem Bonds in increments of $5,000, the remaining portion of the prepayment is to be retained in the Prepayment Account and, when at the determination of the District there is sufficient money to redeem Bonds shall be used to redeem Bonds as herein provided. SECTION 17. Bond Proceeds. From the proceeds from the sale of the Bond, the Treasurer shall place the accrued interest, if any, in the Redemption Fund, $3,000 in the Reserve Fund and the balance shall be placed in the Improvement Fund to pay for the Improvements and Incidental Expenses, as set forth in the Engineer's Report For Assessment District No. 2004-1 (Beach Drive) approved by the City Council on June 22, 2004 and the amount to reimburse the City for the moneys advanced by the City for the acquisition and construction of the Improvements, and the moneys in said funds shall be used only for the purposes set forth herein and as permitted by the Act. SECTION 18. Improvement Fund. The Treasurer shall deposit in a special fund hereby created and designated the "Assessment District No. 2004-1 (Beach Drive) Improvement Fund" (the "Improvement Fund") the amount set forth in Section 17 hereof. All moneys in the Improvement Fund shall be applied exclusively to acquire and construct the Improvements and to reimburse the District for amounts paid by the City for the costs of the Improvements and acquisitions described in the Resolution of Intention, as now or hereafter amended or changed by appropriate change and modification proceedings, and all Incidental Expenses. Any surplus remaining in the Improvement Fund after the payment for the Improvement and all Incidental Expenses shall be transferred to the Redemption Fund and used as provided in Section 10427 of the Streets and Highways Code of the State of California. SECTION 19. Reserve Fund. The Treasurer shall establish a fund designated the Assessment District No. 2004-1 (Beach Drive) Reserve Fund (the "Reserve Fund"). The City agrees to deposit in the Reserve Fund from Bond proceeds $3,000. Money in the Reserve Fund shall be used solely for the purpose of paying the principal of and interest on the Bond when due in the event that the moneys in the Redemption Fund are insufficient therefor. The Treasurer shall withdraw moneys as necessary from the Reserve Fund for deposit in the Redemption Fund on or before the first day of March and September of each year. In the event an Assessment is prepaid in whole or in part, the Assessment thus prepaid shall be reduced by an amount equal to that proportionate of the amount in the Reserve Fund at the time of said prepayment attributable to the amount of the Assessment prepaid, and the amount thus determined shall be transferred from the Reserve Fund to the Prepayment Account of the Redemption Fund. • • In the event that moneys comprising (i) the Reserve Fund and (ii) the Redemption Fund are sufficient to retire the outstanding Bond plus accrued interest thereon, such moneys in the Reserve Fund shall be transferred to the Redemption Fund for the payment of the Bond. All amounts remaining in the Reserve Fund in the year in which the last Assessment Installments become due and payable shall be credited toward said Assessments as provided above. In the event money is withdrawn from the Reserve Fund and transferred to the Redemption Fund to pay debt service on the Bond, the City shall deposit in the Reserve Fund any money received from the payment of delinquent Assessments made by the owner of delinquent property or as a result of any foreclosure action to replace the amount withdrawn from the Reserve Fund. SECTION 20. Administrative Expense Fund. Upon receipt of the Assessment Installments, the Treasurer shall deposit the amounts designated as the Administrative Expense Requirement to the Administrative Expense Fund. The Treasurer shall apply the moneys on deposit in the Administrative Expense Fund for payment of Administrative Expenses. Fees or charges incurred by the City in performance of their respective obligations hereunder shall be paid from the Administrative Expense Fund, except that the fees or charges payable to the County for enrolling the levy shall be retained by the County prior to making an apportionment pursuant to the provisions of Section 8682 of the 1915 Act and shall not be transferred to the Treasurer or considered part of the apportionment. All fees or charges of the City shall be reimbursed or satisfied by the collection of such fees or charges or estimates thereof with the principal of and interest on the Assessment Installments due at the time of such collection. The amount of any such fees, charges or estimates thereof shall be apportioned pro rata and shall be collected with the same collection and enforcement procedures and with the same priority and effect as with respect to the collection of the principal of and interest on the Assessments. SECTION 21. Treasurer. This City Council hereby appoints the Treasurer to act as paying agent, transfer agent and registrar for the Bond (the "Treasurer"). SECTION 22. Cumulative Remedy. This City Council covenants that, pursuant to Part 14 (commencing with Section 8830) of Division 10 of the Streets and Highways Code of the State of California, when the delinquency reported by the Auditor of the County of Los Angeles of any property owner is equal to $1,000, it will order and cause to be commenced and thereafter diligently prosecute an action in the Superior Court of California in and for the County of Los Angeles to foreclose the lien of any and all such delinquent assessments or of any interest thereon. SECTION 23. Unpaid Assessments as Trust Fund. The unpaid Assessments shown on the assessment roll on file in the office of the Superintendent of Streets are determined by this City Council to be correct, and said unpaid Assessments, together with the interest thereon, shall remain and constitute a trust fund for the prepayment and payment of the Bonds and of the interest which may be due thereon. SECTION 24. Federal Tax Covenants. Notwithstanding any other provision of this Resolution, absent an opinion of Bond Counsel that the exclusion from gross income of interest on the Bond will not be adversely affected for federal income tax purposes, the City covenants to comply with all applicable requirements of the Code necessary to .preserve such exclusion from gross income and specifically covenants, without limiting the generality of the foregoing, as follows: • •, (a) Private Activity. The City will not take or omit to take any action or make any use of the proceeds of the Bond or of any other monies or property which would cause the Bond to be a "private activity bond" within the meaning of Section 141 of the Code; (b) Arbitrage. The City will make no use of the proceeds of the Bond or of any other amounts or property, regardless of the source, or take or omit to take any action which will cause the Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code; (c) Federal Guarantee. The City will make no use of the proceeds of the Bond or take or omit to take any action that would cause the Bond to be "federally guaranteed" within the meaning of Section 149(b) of the Code; (d) Information Reporting. The City will take or cause to be taken all necessary action to comply with the informational reporting requirement of Section 149(e) of the Code; (e) Hedge Bond. The City will make no use of the proceeds of the Bond or any other amounts or property, regardless of the source, or take or omit to take any action that would cause the Bond to be considered "hedge bonds" within the meaning of Section 149(g) of the Code, unless the City takes all necessary action to assure compliance with the requirements of Section 149(g) of the Code to maintain the exclusion from gross income of interest on the Bond for federal income tax purposes; and (f) Miscellaneous. The City will take no action inconsistent with its expectations stated in the Tax Certificate and will comply with the covenants and requirements stated therein and incorporated by reference herein. SECTION 25. Rebate Fund. The City does not intend to issue tax exempt securities in 2004 in excess of $5,000,000 and therefore, the arbitrage provisions relating to the Bond do not apply. In the event the City issues tax exempt securities in 2004 in excess of $5,000,000, the following procedure shall apply. (a) Establishment of Rebate Fund. The Treasurer shall establish a special fund with respect to the Bond and the City and the Treasurer shall comply with the requirements below. All money at any time deposited in the Rebate Fund shall be held by the Treasurer in trust, for payment to the United States Treasury. All amounts on deposit in the Rebate Fund shall be governed by this Section 25 and the applicable Tax Certificate, unless the City obtains an opinion of Bond Counsel that the exclusion from gross income of interest on the Bond will not be adversely affected for federal income tax purposes if such requirements are not satisfied. (i) Computation. Within 55 days after the end of the fifth Bond Year and each fifth Bond Year thereafter (and the last Bond Year), the City shall calculate or cause to be calculated the amount of rebatable arbitrage, in accordance with Section 148(0(2) of the Code and Section 1.148-3 of the Rebate Regulations (taking into account any applicable exceptions with respect to the computation of the rebatable arbitrage, described, if applicable, in the Tax Certificate (the "Rebatable Arbitrage"). (ii) Transfer. Within 55 days after the end of each fifth Bond Year, an amount shall be deposited to the Rebate Fund by the Treasurer from any legally available funds of the City, if and to the extent required, so that the balance in the Rebate Fund shall equal the amount s • • of Rebatable Arbitrage so calculated in accordance with (i) above. In addition, within 55 days after the payment of the Bond an amount shall be deposited to the Rebate Fund by the Treasurer from any legally available funds of the City, if and to the extent required, so that the balance in the Rebate Fund shall equal the amount of Rebatable Arbitrage so calculated in accordance with (i) above. (iii) Payment to the Treasury. The Treasurer shall pay to the United States Treasury, out of amounts from the Rebate Fund, (A) Not later than 60 days after the end of (a) the fifth Bond Year, and (b) each fifth Bond Year thereafter, an amount equal to at least 90% of the Rebatable Arbitrage calculated as of the end of such Bond Year; and (B) Not later than 60 days after the payment of the Bond, an amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such Bond Year, and any income attributable to the Rebatable Arbitrage, computed in accordance with Section 148(f) of the Code. In the event that, prior to the time of any payment required to be made from the Rebate Fund, the amount in the Rebate Fund is not sufficient to make such payment when such payment is due, the City shall calculate or cause to be calculated the amount of such deficiency and transfer to the Rebate Fund an amount received from any legally available source of the City, equal to such deficiency in the Rebate Fund prior to the time such payment is due. Each payment required to be made pursuant to this Section shall be made to the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255 on or before the date on which such payment is due, and shall be accompanied by Internal Revenue Service Form 8038-T provided to the Treasurer in a completed form by the City, or shall be made in such other manner as provided under the Code as directed in writing by the City. (b) Disposition of Unexpended Funds. Any funds remaining in the Rebate Fund after prepayment and payment of the Bond and the payments described in (iii) above, shall be transferred to the City's general fund. (c) Survival of Defeasance. Notwithstanding anything in this Section or the Resolution to the contrary, the obligation to comply with the requirements of this Section shall survive the defeasance of the Bond. SECTION 26. Incontestability. After the sale and delivery of the Bond by the City, the Bond shall be incontestable by the City. SECTION 27. Contract with the Bond Owner. The provisions of this Resolution and of any other resolution supplementing or amending this Resolution shall constitute a contract between the City and the Owner of the Bond, and such provisions shall be enforceable by the Bond Owner by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. No remedy conferred hereby upon the Bond Owner is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by law. • • No waiver of any default or breach of duty or contract by the Bond Owner shall affect any subsequent default or breach of duty or contract or shall impair any right or remedies on said subsequent default or breach. No delay or omission of the Bond Owners to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any default or acquiescence therein. Every substantive right and every remedy conferred upon the Bond Owners may be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and should said suit, action or proceeding be abandoned, or be determined adversely to the Bond Owner, then, the City and the Bond Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. SECTION 28. Cessation of Agreements. When the Bond and all interest to accrue thereon have been fully paid and discharged, the agreements in this Resolution contained shall cease and terminate, and the City shall be under no further obligation to do or perform any of the covenants, conditions or agreements in this Resolution contained. SECTION 29. Partial Invalidity. If any section, subsection, sentence, clause or phrase of this Resolution shall be for any reason held by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable, and such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause orr phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable. SECTION 30. Liberal Construction. This Resolution shall be liberally construed to the end that its purpose may be effected. No error, irregularity or informality and no neglect or omission herein or in any proceeding had pursuant hereto which does not directly affect the jurisdiction of this City Council shall void or invalidate this resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. SECTION 31. Approval of the Sale and Delivery of the Bond. The sale of the Bond to Piper Jaffray & Co. at the price and interest rate specified in the Bond Purchase Agreement dated as of July 27 , 2004— is hereby approved. The Treasurer is hereby authorized and directed to authenticate the Bond and to deliver it to Piper Jaffray & Co. upon payment of the purchase price thereof. SECTION 32. Authorization of. Officers. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bond, and otherwise to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. SECTION 33. Effective Date. This Resolution shall become effective upon adoption. APPROVED AND ADOPTED this 27th day of July, 2004. Mayor of the City of Hermosa Beach ATTEST: City Clerk of the City of Hermosa Beach • • EXHIBIT A [FACE OF BOND] UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH LIMITED OBLIGATION IMPROVEMENT BOND ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) No. 1 $404,341 Pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code and under and by virtue of the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code (the "Act"), City of Hermosa Beach, County of Los Angeles, State of California (the "City"), will, out of the Redemption Fund for the payment of the bond issued upon the unpaid portion of assessments made for the work and improvements on certain streets and rights of way in Assessment District No. 2004-1 (Beach Drive) more fully described in the resolution of intention, Resolution No. 04-6334 adopted by the. City Council of the City on April 27, 2004 (the "Resolution of Intention"), pay to Piper Jaffray & Co. , or registered assigns the principal sum of Four Hundred and Four Thousand Three Hundred and Forty One Dollars ($404,341 ), in lawful money of the United States of America on September 2 in each of the years and installments of principal as follows: BOND AMOUNT BOND AMOUNT MATURING MATURING 2005 $11,492 2015 $20.010 2006 13,122 2016 20,970 2007 13,752 2017 21,977 2008 14,412 2018 23.032 2009 15,104 2019 24,137 2010 15.828 2020 25,296 2011 16,588 2021 26,510 2012 17,385 2022 27,783 2013 18,219 2023 29,116 2014 19.094 2024 30,514 DATES 2006 MATURITY AMOUNT MATURITY DATES 2$1-$ -9 MATURITY AMOUNT 2007 2.82.0 200g 2021- 200s9 2022 20.1-0 2023- 2044 2024 2044 2025 201-3 2026 20414 2027 20 2028 2046 2020 20-1-7 2039 and in like manner will pay interest from the interest payment date next preceding the date on which this bond is authenticated, unless this bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this bond is authenticated and registered on or prior to February 15, 2005, in which event it shall bear interest from its date, until payment of such principal sum shall have been discharged, at the rate of 4.80 % per annum, payable semiannually on March 2 and September 2 in each year commencing on March 2, 2005. The principal installments hereof and the interest hereon are payable by check mailed to the owner hereof at the owner's address as it appears on the records of the Treasurer of the City, acting as transfer agent, registrar and paying agent (the "Treasurer"), or at such address as may have been filed with the Treasurer for that purpose, as of the fifteenth day of the month immediately preceding each interest payment date. Each installment of principal will continue to bear interest after maturity at the rate above stated; provided, at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in said Redemption Fund with which to pay same. This Bond shall not be entitled to any benefit under the Act or the Resolution of Issuance of the Limited Obligation Improvement Bond for Assessment District No. 2004-1 (Beach Drive), Resolution No. (the "Resolution of Issuance"), or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the manual signature of the Treasurer. This Bond is issued by the City under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the work and improvements described in the Resolution of Intention, and is secured by the moneys in the Redemption Fund established by the Resolution of Issuance and by the unpaid portion of assessments made for the purpose of said work, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner's attorney duly authorized in writing, at the office of the Treasurer in Hermosa Beach, California, subject to the terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered bond of the same maturities, for the same aggregate principal amount, except the new bond shall reflect a maturity or portion thereof prepaid, will be issued to the transferee in exchange therefor. The City shall not be required to make such exchange or registration of transfer of bonds during the 15 days immediately preceding any interest payment date. • • The Treasurer may treat the owner hereof as the absolute owner for all purposes, and the Treasurer shall not be affected by any notice to the contrary. This Bond or any portion of it may be prepaid and paid in advance of maturity as provided in the Resolution of Issuance upon the 2nd day of March or September in any year by giving at least 30 days' notice by registered mail to the registered owner hereof at the owner's address as it appears on the registration books of the Treasurer by paying the principal amount to be prepaid and interest on said amount to the date of prepayment, with a premium of 3% of the principal amount prepaid. ALL OR A PORTION OF AN INSTALLMENT OF PRINCIPAL MAY HAVE BEEN PREPAID FROM THE PREPAYMENT OF ASSESSMENTS. THE RECORD OF PREPAYMENT OF AN INSTALLMENT OF PRINCIPAL IS ON FILE IN THE OFFICE OF THE TREASURER. ->9 • • IN WITNESS WHEREOF, said City has caused this Bond to be signed by the Treasurer of said City and its City Clerk by their manual signatures, and sealed with the corporate seal of the City hereon all as of the day of , 2004. City Clerk of the City of Hermosa Beach Treasurer of the City of Hermosa Beach [SEAL]. • • ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto [PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE] [Please print or typewrite name and address including postal zip code of assignee] the within Bond of the City, County of Los Angeles, California, and does hereby irrevocably constitute and appoint Attorney to transfer said Bond on the books of the Treasurer of the City, as Transfer Agent, and Registrar, with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within Bond in every particular without alteration or enlargement, or any change whatsoever. AUTHENTICATION AND REGISTRATION This is one of the bonds described in the within mentioned Resolution of Issuance, which was registered on , 2004 to: Name of Address of Registered Owner Registered Owner By: Treasurer of the City of Hermosa Beach • • 1NORTHCROSS IHI HACH I July 26, 2004 Steve Burrell City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 92054-3885 RE: Limited Obligation Improvement Bond Assessment District No. 2004-1 (Beach Drive) Dear Steve: Northcross, Hill & Ach Tel: 415.506.3400 Specializing in Public Finance Fax: 415.506.3401 1004E O'Reilly Avenue www.nhainc.net The Presidio San Francisco, CA 94129 We have discussed and solicited proposals from various funding sources related to the City of Hermosa Beach (the "City") issuance of limited obligation improvement bonds (the "Bonds") for the Beach Drive neighborhood. Piper Jaffray & Co. (the `Buyer") has provided the best terms for the City. The Buyer has proposed to purchase the Bonds at a rate of 4.80% with a final maturity on September 2, 2024. The bonds will be callable at 3% from prepayments. Under current market conditions, the interest rate on unrated assessment bonds ranges from 5.5% to 6%, depending on the underlying value of land and improvements. Larger, more diversified assessment districts are receiving financing rates in the mid 5% range. Smaller or less diversified districts are financing at 6%+ rates. Given the relatively small financing amount and select number of properties within the district boundaries, the rate rate provided by Piper Jaffray & Co. represents a lower overall cost of funds than any other financing source, including the issuance of public bonds. The private placement structure provides approximately $4,700 per year in savings with the total interest savings over the 20 years of $55,000. Please call me if you have any further questions on this matter. Very truly yours; G. Craig Hill Principal BOND PURCHASE AGREEMENT NOT TO EXCEED $404,341 CITY OF HERMOSA BEACH Limited Obligation Improvement Bond Assessment District No. 2004-1 (Beach Drive) July 28, 2004 City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 92054-3885 The undersigned, Piper Jaffray & Co., as underwriter (the "Underwriter"), offers to enter into this Bond Purchase Agreement with the City of Hermosa Beach (the "City") which, upon acceptance, will be binding upon the City and upon the Underwriter. This offer is made subject to the City's acceptance hereof on the date hereof, and if not so accepted will be subject to withdrawal by the Underwriter upon notice delivered to the City at any time prior to the acceptance hereof by the City. 1. Purchase, Sale and Delivery of the Bond. (a) Subject to the terms and conditions and in reliance upon the representations, warranties and agreements herein set forth, the Underwriter hereby agrees to purchase from the City, and the City hereby agrees to sell to the Underwriter, all (but not Tess than all) of the City of Hermosa Beach Limited Obligation Improvement Bond Assessment District No. 2004-1 (Beach Drive) (the "Bond"), dated their date of delivery, in the aggregate principal amount not to exceed $404,341, bearing interest (payable commencing March 2, 2005, and semiannually thereafter on September 2 and March 2 in each year) at the rate of interest, and maturing on the date as set forth in Exhibit A attached hereto and incorporated herein by this reference. The purchase price for the Bond shall be $404,341, which is the principal amount of the Bond. The Bond shall be substantially as described in, shall be issued and secured under the provisions of, and shall be payable and subject to redemption as provided in a Resolution of Issuance dated as of July 27, 2004 (the "Resolution ") by the City. (b) At 8:00 o'clock A.M., Pacific Daylight Time, on August 12, 2004, or at such other time or date as shall be agreed upon by the Underwriter and the City (such time and date being herein referred to as the "Closing Date"), the City will deliver to the Underwriter, at a location or locations to be designated by the Underwriter, the Bond in definitive form, duly executed as provided in the Resolution, and the other documents herein mentioned; and the Underwriter will accept such delivery and pay the purchase price of the Bond as set forth in paragraph (a) of this section in immediately available federal funds (such delivery and payment • being herein referred to as the "Closing"). The Bond shall be made available to the Underwriter, or their designees, not later than three business days before the Closing Date for purposes of inspection. The Bond shall be in fully registered form, with such persons as designated by the Underwriter as registered owner. 2. Representations, Warranties and Covenants of the City. The City hereby represents and warrants to and agrees with the Underwriter as of the date of this agreement that: (a) the City is duly organized and validly existing as a general law city and municipal corporation organized and existing under and by virtue of the laws of the State of California (the "State"); (b) the City has full legal right, power and authority to enter into this Bond Purchase Agreement, to issue and deliver the Bond to the Underwriter, to perform its obligations under each such document or instrument, and to carry out and effectuate the transactions contemplated by this Bond Purchase Agreement and the Resolution; (c) this Bond Purchase Agreement, and the Bond have been, or on or before the Closing Date will be duly executed and delivered by the City, and on the Closing Date, the Bond, when authenticated and delivered to the Underwriter in accordance with the Resolution and this Bond Purchase Agreement, will constitute a legally valid and binding obligation, enforceable in accordance with its respective terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium, or similar laws or equitable principles relating or limiting creditor's rights generally; (d) to the best knowledge of the City, the execution of the Resolution, the issuance of the Bond, the execution, delivery and performance of this Bond Purchase Agreement and the Bond, and compliance with the provisions of each of such documents or instruments do not constitute on the part of the City a violation of any existing law, charter, ordinance, regulation, decree, order or resolution of the City. (e) to the best knowledge of the City, without having conducted an independent investigation, as of the time. of acceptance hereof, no action, suit, proceeding, hearing or investigation, other than that which has previously been disclosed to the Underwriter is pending or threatened against the City: (i) in any way affecting the existence of the City or in any way challenging the respective powers of the several offices or the titles of the officials of the City to such office; or (ii) seeking to restrain or enjoin the sale, issuance or delivery of any of the Bond, the application of the proceeds of the sale of the Bond, or the collection of the assessments pledged or to be pledged or available to pay the principal of, premium, if any, or the interest on the Bond, or the pledge thereof, or in any way contesting or affecting the validity or enforceability of the Bond, this Bond Purchase Agreement or the Resolution, or contesting the powers of the City or its authority with respect to the Bond, the District, the Resolution or this Bond Purchase Agreement; or (iii) in which a final adverse decision could (A) materially adversely affect the consummation of the transactions contemplated by this Bond Purchase Agreement or the Resolution, (B) declare this Bond Purchase Agreement or the Resolution to be invalid or unenforceable in whole or in material part, or (C) adversely affect the exemption of the interest paid on the Bond from taxation by the Government of the United States or by the State for income tax purposes; • • (f) the City has not been notified of any listing or proposed listing by the Internal Revenue Service to the effect that the City is a bond issuer whose tax or non -arbitrage certificates may not be relied upon; (g) any certificate signed by an officer or official of the City and delivered to the Underwriter shall be deemed a representation and warranty by the City as to the statements made therein, but not of the person signing the same; (h) the City will apply the proceeds from the sale of the Bond for the purpose specified in the Resolution; 3. Conditions to the Obligations of the City. The obligations of the City hereunder, including the obligation to sell and deliver the Bond to the Underwriter, are subject to the conditions stated herein. 4. Conditions to the Obligations of the Underwriter. The obligations of the Underwriter to accept delivery of and pay for the Bond on the Closing Date shall be subject, at the option of the Underwriter, to the accuracy in all material respects of the representations and warranties on the part of the City contained herein, as of the date hereof and as of the Closing Date, to the accuracy in all material respects of the statements of the officers and other officials of the City and other persons and entities made in any certificates or other documents furnished pursuant to the provisions hereof, to the performance by the City of its obligations to be performed hereunder at or prior to the Closing Date and to the following additional conditions (any of which may be waived by the Underwriter): (a) At the Closing Date, the Resolution and this Bond Purchase Agreement shall be in full force and effect, and shall not have been amended, modified or supplemented, exceptas may have been agreed to in writing by the Underwriter, and there shall have been taken in connection therewith, with the issuance of the Bond and with the transactions contemplated thereby and by this Bond Purchase Agreement, all such actions as, in the opinion of Stradling Yocca Carlson & Rauth, Bond Counsel for the City, shall be necessary and appropriate; (b) Between the date hereof and the Closing Date, the market price or marketability of the Bond at the initial offering price shall not have been materially adversely affected, in the reasonable judgment of the Underwriter (evidenced by a written notice to the City terminating the obligation of the Underwriter to accept delivery of and pay for the Bond), by reason of any of the following: (1) Legislation enacted (or resolution passed) by the Congress of the United States of America or a decision rendered by a court established under Article III of the Constitution of the United States of America or by the Tax Court of the United States of America, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Treasury Department or the Internal Revenue Service of the United States of America, with the purpose or effect, directly or indirectly, of imposing federal income taxation upon the interest as would be received by the holders of the Bond; (2) Legislation enacted (or resolution passed) by the Congress of the United States of America, or an order, decree or injunction issued by any court of • • competent jurisdiction, or an order, ruling, regulation (final, temporary or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bond, including any or all underlying arrangements, are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Resolution is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering or sale of obligations of the general character of the Bond, or of the Bond, including any or all underwriting arrangements, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities laws as amended and then in effect; (3) Any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the City, its property, income or securities (or interest therein), the validity or enforceability of the assessment or the ability of the City to issue the Bond as contemplated by the Resolution and the Official Statement; (4) The entry of an order by a court of competent jurisdiction which enjoins or restrains the City from issuing permits, licenses or entitlements within the District or which order, in the reasonable opinion of the Underwriter, otherwise materially and adversely affects the proposed development within the District. (5) The ordinance of the City authorizing the Bond shall not be finally approved. (c) On or prior to the Closing Date, the Underwriter shall have received counterpart originals or certified copies of the following documents, in each case satisfactory in form and substance.to the Underwriter: (1) One counterpart original or copy certified by a duly authorized officer of the City, of the Resolution, and the approval of this Bond Purchase Agreement; (2) The approving opinion, dated the Closing Date and addressed to the City, of Stradling Yocca Carlson & Rauth, Bond Counsel, and an opinion of such counsel, dated the Closing Date and addressed to the Underwriter, to the effect that such opinion addressed to the City may be relied upon by the Underwriter to the same extent as if such opinion was addressed to it; (3) A supplemental opinion of Bond Counsel, dated the Closing Date and addressed to the Underwriter, in form and substance satisfactory to the Underwriter and their counsel, to the effect that information provided in the Resolution, the Bond and Bond Counsel's opinion concerning certain federal and state tax matters relating to the Bond, are accurate in all material respects; (4) A certificate of an authorized officer of the City, dated the Closing Date, addressed to Bond Counsel and the Underwriter, in form and substance acceptable to the Underwriter to the following effect: (i) This Bond Purchase Agreement has been duly authorized, executed and delivered by the City and constitutes the valid, legal and binding agreement of the City enforceable in accordance with its terms. (ii) No consent, waiver or any other action of any person, board of body, public or private is required as of the Closing Date, for the City to enter into this Bond Purchase Agreement or to perform its obligations under it. (iii) Without having conducted an independent investigation, the City has not been served with any action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, governmental agency, public board or body or, to the best of my knowledge is such event threatened against the City, challenging the creation, organization or existence of the City, or the validity of the Bond, or this Bond Purchase Agreement, seeking to restrain or enjoin any of the transactions referred to therein or contemplated hereby. (5) Opinion of City Attorney. An opinion of the City Attorney addressed to the City and the Underwriter, dated the date of Closing, in substantially the form attached hereto as Exhibit B. (7) A Tax Certificate in form and substance satisfactory to Bond Counsel. (8) A copy of the Report of Proposed Debt Issuance and the Report of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to section 8855, subsection (g) of the Government Code. (9) A copy of a completed Internal Revenue Service form 8038-G, together with a certificate of mailing of the form to Internal Revenue Service Center, Philadelphia, PA 19255. (10) Such additional certificates, instruments and other documents as the Underwriter or its counsel may reasonably deem necessary to evidence the truth and accuracy as of the time of the Closing of the representations of the City and the due performance or satisfaction by the City at or prior to such time of all agreements then to be performed and all conditions then to be satisfied by the City. If the City shall be unable to satisfy the conditions contained in this Bond Purchase Agreement, or if the obligations of the Underwriter shall be terminated for any reason permitted by this Bond Purchase Agreement, this Bond Purchase Agreement shall terminate and neither the Underwriter nor the City shall be under further obligation hereunder, except as further set forth in Section 10 hereof. 5. Conditions of the City's Obligations. The City's obligations hereunder are subject to the Underwriter's performance of the obligations hereunder, and are also subject to, as of the Closing Date, the fact that the market price or marketability of the Bond shall not have been materially adversely affected, in the reasonable judgment of the City. 6. Expenses. (a) The City shall be under no obligation to pay, other than out of Bond proceeds, any expenses incident to the City's obligations hereunder, including, but not limited to (i) the fees and disbursements of any accountants and other experts, consultants or advisers retained; (ii) the cost of preparation, printing and mailing or delivery of the definitive Bond; (iii) the fees and disbursements of Bond Counsel; and (iv) the costs of publication or mailing of notices as required by the Resolution. (b) The Underwriter shall pay (i) all advertising expenses in connection with the sale of the Bond, (ii) California Debt and Investment Advisory Commission fees, and (iii) all other expenses incurred by them or any of them in connection with the sale and distribution of the Bond. 7. Undertakings of the City. The City agrees, at its expense, to make available to the Underwriter sufficient copies of its audited financial statements, if any, resolutions and ordinances of the City with respect to the Bond, the Resolution, this Bond Purchase Agreement, and any amendments or supplements thereto and other documents related to the Bond and pertaining to the City, to the extent such documents are publicly available, as may reasonably be required from time to time for the prompt and efficient performance by the Underwriter of their obligations hereunder (except for all or any portions of any such documents which, by contract, are not subject to disclosure). 8. Parties in Interest. This Bond Purchase Agreement is made solely for the benefit of the City and the Underwriter (including successors or assigns of the Underwriter) and no other person shall acquire or have any right hereunder or by virtue hereof. 9. Survival of Representations and Warranties. The representations and warranties of the City set forth in or made pursuant to this Bond Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) conceming such representations and statements of the City and regardless of delivery of and payment for the Bond. 10. Effective. This Bond Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the City and shall be valid and enforceable as of the time of such acceptance. 11. Applicable Law; Nonassignabilitv. This Bond Purchase Agreement shall be governed by the laws of the State of California. This Bond Purchase Agreement shall not be assigned by the City or the Underwriter. 12. Execution of Counterparts. This Bond Purchase Agreement may be executed in several counterparts, each of which shall be regarded as an original and all of which shall constitute one and the same. 13. No Prior Agreements. This Bond Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bond for the City and represents the entire agreement of the parties as to the subject matter herein. 14. Partial Unenforceability. Any provision of this Bond Purchase Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Bond Purchase Agreement or affecting the validity or enforceability of such provision in any other jurisdiction. Very truly yours, PIPER JAFFRAY & CO. By Terms and conditions of this Bond Purchase Agreement are approved and accepted as of the date above written. CITY OF HERMOSA BEACH By: City Manager EXHIBIT A DESCRIPTION OF THE BOND TO BE PURCHASED Principal Amount: Interest Rate: First Interest Payment Date: Final Maturity Date: Principal Sinking Payments: $404,341 4.80% March 2, 2005 September 2, 2024 September 2, 2005 — September 2, 2024 Sinking Payment Principal September 2 Amount 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 $11,492 13,122 13,752 14,412 15,104 15,828 16,588 17,385 18,219 19,094 20,010 20,970 21,977 23,032 24,137 25,296 26,510 27,783 29,116 30,514 • • EXHIBIT B FORM OF OPINION OF CITY ATTORNEY , 2004 City of Hermosa Beach 1315 Valley Drive Hermosa Beach, CA 92054-3885 Piper Jaffrey 345 California Street, Suite 2200 San Francisco, CA 94104 OPINION: $404,341 City of Hermosa Beach, Limited Obligation Improvement Bond Assessment District No. 2004-1, (Beach Drive) (the "Bond") Ladies and Gentlemen: Our firm acts as the City Attorney for the City Hermosa Beach (the "City") and have acted as such in connection with the issuance by the City for and on behalf of the $404,341 City Of Hermosa Beach Limited Obligation Improvement Bond Assessment District No. 2004-1 (Beach Drive) (the "Bond"). The Bond is being issued pursuant to a Resolution, dated as of July 27, 2004 (the "Resolution"), by the City. Capitalized terms used herein and not otherwise defined shall have the meanings assigned to them in the Resolution. In this connection, we have reviewed and examined the Resolution, the Bond Purchase Agreement, dated July 28, 2004, by and between the City and Piper Jaffray & Co., as underwriter of the Bond and certain proceedings and documents with respect to the Bond, Resolution No. providing for issuance of the Bond, and such records, certificates and other documents as we have considered necessary or appropriate for the purposes of this opinion. In rendering this Opinion, we have made the assumption that all documents submitted to or reviewed by us are accurate and complete and, if not originals, are true and correct copies of originals. We have further assumed that the signatures on each of these documents by parties other than representatives of the City are genuine, and each individual executing any of these documents on behalf of the parties other than the City has the legal capacity to do so. Based upon our review and such other considerations of law and fact as we believe to be relevant, we are of the opinion that: (i) The City is a municipal corporation, duly organized and lawfully existing under the laws of the State. --3 (ii) The Resolution of the City Council of the City approving and authorizing the execution and delivery of the Bond has been duly adopted and has not been modified, amended or rescinded. (iii) The authorization, execution and delivery of the Bond by the City and compliance by the City with the provisions thereof, will, to the best of our current actual knowledge, not conflict with, or constitute a breach of default under, any law, administrative regulation, court decree, resolution, ordinance or other agreement to which the City is subject or by which it is bound. (iv) To the best of our current actual knowledge, the City has not been served with any action, suit, proceeding, inquiry or investigation at law or in equity before or by any court, governmental agency, public board or body or threatened against the City, challenging the creation, organization or existence of the City, or the validity of the Bond, the Bond or the Bond Purchase Agreement, seeking to restrain or enjoin any of the transactions referred to therein or contemplated thereby. The foregoing opinions are subject to the following additional exceptions or limitations: 1. The opinions set forth herein are based upon the laws of the State of California as of the date hereof, and we assume no obligation to modify or supplement this Opinion with respect to changes in such laws after the date hereof. 2. As counsel to the City in this matter, we have not rendered financial advice to the City and do not represent, by this Opinion or otherwise, that we have reviewed or' made any assessment about, nor do we offer any opinion about, the financial condition of the City, past, present or future, including any financial information contained in the documents; nor have we reviewed the financial feasibility of this transaction or those matters which the proceeds of the Bond will fund or any of its components and accordingly, we offer no opinion whatsoever regarding such financial feasibility. 3. Whenever a statement herein is qualified by "to the best of our current actual knowledge," it is intended to indicate that, during the course of our representation of the City, no information would give us current actual knowledge of the inaccuracy of such statement has come to the attention of those attorneys in this firm who have rendered legal services to the City. However, we have not undertaken any independent investigation to determine the accuracy of such statement, and any limited inquiry undertaken by us during the preparation of this Opinion Letter should not be regarded as such an investigation; no inference as to our knowledge of any matters bearing on the accuracy of any such statement should be drawn from the fact of our representation of the City, either past or present. We express no opinion as to any matter other than as expressly set forth above, and, in conjunction therewith, specifically express no opinion concerning the application of or compliance with any federal security law, including but not limited to the Securities Act of 1933, as amended, and the Trust Indenture Act of 1939, as amended, any state securities or "Blue Sky" law or any federal, state or local tax law, as respecting the Notes. • • The City, Piper Jaffray & Co., as Underwriter, and Stradling Yocca Carlson & Rauth, as Bond Counsel, may rely upon our Opinion as set forth herein; otherwise, this Opinion may not, without express written consent, be relied upon by any other person. We undertake no duty to notify any person or entity of changes in the facts or circumstancesupon which this Opinion is based or any new facts or information which may become known to us after the date of this Opinion. Very truly yours, Honorable Mayor and Members of the Hermosa Beach City Council RECOMMENDATION • July 20, 2004 City Council Meeting of July 27, 2004 It is recommended that the City Council adopt the attached resolution authorizing issuance of bonds for Beach Drive Assessment 2004-1. BACKGROUND The City Council has followed all of the prescribed procedures to set up the assessment district, order improvements and provide for assessments, as outlined in the attached resolution. ANALYSIS The resolution provides for issuance of limited obligation bonds in a principal amount equal to the unpaid assessments., The bonds are secured by a first lien against the real property in the assessment district and will be repaid from assessments levied in the same manner as real property taxes. Neither the credit nor the taxing power of the City is pledged for payment of the bonds or interest. The only obligations of the City are those administrative duties related to the collection and disbursement of assessments. The resolution provides for sale of a single bond, with the amount to be determined after the prepayment period closes on July 26, 2004. Craig Hill of Northcross, Hill & Ach, who serves as our financial advisor, expects to have details of the purchase the next day, which is the day of the City Council meeting, July 27, 2004. Mr. Hill will provide a letter verifying that the interest rate is reflective of the current market. Since the principal amount of the bonds will be less than $1 million, sale to a single buyer avoids the additional costs associated with issuance of bonds such as disclosure documents, printing costs and underwriter's discounts. Respectfully submitted, 624,1 Viki Copeland Finance Director Steph: R. r 'rre' City M. nager F:\B95\FINANCEI\Beach Drive RESOLUTION AUTHORIZING ISSUANCE OF BONDS.d 6e • • RESOLUTION NO. 04 - RESOLUTION OF ISSUANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH AUTHORIZING THE ISSUANCE AND SALE OF A LIMITED OBLIGATION IMPROVEMENT BOND FOR ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) WHEREAS, on April 27, 2004 this City Council of City of Hermosa Beach (the "City") adopted Resolution No. 04-6334 (the "Resolution of Intention") declaring its intention, pursuant to the provisions of Division 12 of the Streets and Highways Code of the State of California, the Municipal Improvement Act of 1913 and Chapter 28, Part 3 of Division 7 of the Streets and Highways Code of the State of California, to order the acquisition and construction of under - grounding existing power and telephone lines, and appurtenances and appurtenant work and incidental costs and expenses in connection therewith and to form Assessment District No. 2004-1 (Beach Drive); and WHEREAS, the Resolution of Intention provides for the issuance of bonds in the manner provided by Division 10 of the Streets and Highway Code of the State of California, the Improvement Bond Act of 1915 (the "Act"), to represent and be secured by unpaid assessments; and WHEREAS, pursuant to Resolution No. 04-6335, adopted by the City Council on April 27, 2004, a hearing was held on June 22, 2004 on the questions of the formation of Assessment District No. 2004-1 (Beach Drive) (the "Assessment District") and the issuance of bonds and at said hearing the City Council received a majority vote of the property owners within the Assessment District for the formation of the Assessment District and the issuance of bonds for the unpaid assessments; and WHEREAS, by its Resolution No. 04-6343, adopted on June 22, 2004, this City Council confirmed the assessment and diagram for Assessment District No. 2004-1 (Beach Drive); and WHEREAS on July 27, 2004, the City Council adopted Resolution No. 04 - determining that the unpaid assessments total $ ; and WHEREAS, it is necessary and desirable that the City sell bonds to be issued to represent the unpaid assessments; and WHEREAS, has offered to purchase such bonds, in the form of a single installment payment bond, and this City Council wishes to approve the sale of the bond to in accordance with its offer as set forth in the Bond Purchase Agreement dated as of NOW, THEREFORE, the City Council of City of Hermosa Beach, DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER as follows: SECTION 1. Definitions. Unless the context otherwise requires, the following terms shall have the following meanings: "Administrative Expense Requirement" means an amount, not in excess of the aggregate maximum annual assessment for Administrative Expenses permitted to be levied within the Assessment District as set forth in the Engineer's Report, to be specified each year by the Finance Director to be used for Administrative Expenses. F:\B95\FINANCE1\Beach Drive Bond Reso.DOC • • "Administrative Expenses" means the ordinary and necessary fees and expenses for determination of the Assessment and administering the levy and collection of the Assessment and servicing, pay and prepay the Bond, including any or all of the following: the fees and expenses of the Treasurer, the expenses of the City in carrying out its duties hereunder (including, but not limited to, annual audits and costs incurred in the levying and collection of the Assessment) including the fees and expenses of its counsel and all other costs and expenses of the City incurred in connection with the discharge of their respective duties hereunder and, in the case of the City, in any way related to the administration of the Assessment District. "Assessment" or "Assessments" means the special assessments levied in the Assessment District in accordance with the 1913 Act and the Resolution of Intention, together with the net proceeds derived from any foreclosure proceedings and interest and penalties thereon. "Assessment District" means Assessment District No. 2004-1 (Beach Drive). "Assessment Installment" means the annual portion of the Assessment required to amortize the Bond and pay the Administrative Expenses. "Authorized Investments" means, subject to applicable law, (1) Federal Securities; (2) an Investment Agreement, including GICs, acceptable to, and approved in writing by, the Finance Director; (3) taxable government money market portfolios rated in one of the two highest rating categories by Standard & Poor's Rating Services restricted to obligations with maturities of one year or less, insured or fully guaranteed as to the principal and interest thereon by the full faith and credit of the United States of America or by repurchase agreements collateralized by such obligations; (4) tax-exempt obligations, including tax exempt money market funds, rated at least "A" or higher by Standard & Poor's Rating Services and Moody's Investors Service; (5) commercial paper of "prime" quality of the highest ranking or of the highest letter and numerical rating as provided for by Moody's Investors Service and Standard & Poor's Rating Services, limited to issuing corporations that are organized and operating within the United States and having total assets in excess of five hundred million dollars ($500,000,000) and having an "A" or higher rating for such corporation's debt, other than commercial paper, as provided for by Moody's Investors Service and Standard & Poor's Rating Services and which may not exceed 180 days maturity nor represent more than 10% of the outstanding paper of an issuing corporation; (6) notes, bonds or other obligations which are at all times secured by a perfected first security interest in securities of the types listed by Section 53651 of the California Government Code as eligible securities for the purpose of securing local agency deposits or which are listed as an Authorized Investment under any of the clauses (1) through (5) of this definition (except those described in this clause (6)) and which have a market value, determined at least weekly, at least equal to 102% of the amount of principal and accrued interest on such obligation, which shall be placed by delivery into the custody of a trust company or the trust department of a bank which is not affiliated with the issuer of the secured obligation and which bank shall be responsible for making any market value determinations, and the security interest shall be perfected in accordance with the requirements of the Uniform Commercial Code or federal regulations applicable to the types of securities in which the security interest is granted; (7) any other investment in which funds of the District may be legally invested pursuant to Government Code Section 53635; (8) repurchase agreements secured by Federal Securities; and (9) time or demand deposits fully insured by the Federal Deposit Insurance Corporation or with institutions rated in one of the two highest rating categories by Moody's Investors Service or Standard & Poor's Rating Services. 2 DOCSOC/ 1056485v3/22337-0010 • • "Bond" means the City of Hermosa Beach, Limited Obligation Improvement Bonds Assessment District No. 2004-1 (Beach Drive) issued pursuant to the Resolution. "Bond Counsel" means an attorney or a firm of attorneys, selected by the City, of nationally recognized standing in matters pertaining to the tax treatment of interest on bonds issued by states and their political subdivisions, duly admitted to the practice of law before the highest court of any state of the United States of America or the District of Columbia. "Bond Register" means the books which the Treasurer shall keep or cause to be kept pursuant to Section 10, on which the registration and transfer of the Bond shall be recorded. "Bond Year" means the one year period or shorter period ending each year on March 2, or such other date as may be specified by the District in the Tax Certificate. "Bond Owner" or "Owner" means the person or firm in whose name the Bond is registered as shown on the Bond Register. "Business Day" means any day of the year in New York, New York or Los Angeles, California other than a Saturday, Sunday, a day on which the New York Stock Exchange is closed or any day on which the Paying Agent is not open for business. "City" means the City of Hermosa Beach. "City Clerk" means the City Clerk of the City or his or her designee. "Closing Date" means the date of delivery of the Bond by the City and payment therefor by the original purchaser thereof. "Code" means the Internal Revenue Code of 1986, as amended. "County" means the County of Los Angeles. "Engineer's Report" means the report concerning the Assessment District prepared by David Taussig & Associates, Inc., as approved by the Board of Directors on June 22, 2004 and on file with the City Clerk. "Federal Securities" means, subject to applicable law, United States Treasury notes, bonds, bills or certificates of indebtedness, including United States Treasury Obligations, State and Local Government Series ("SLGS") or other direct obligations issued by the United States Treasury for which the faith and credit of the United States are pledged for the payment of principal and interest; and obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, federal home loan banks, the Federal Home Loan Bank Board, the Tennessee Valley Authority, or other federal agencies or United States Government-sponsored enterprises. "Finance Director" means the Finance Director of the City or his or her designee. "Fiscal Year" means the twelve-month period terminating on June 30 of each year, or any other annual accounting period hereafter selected and designated by the City as its Fiscal Year in accordance with applicable law. 3 DOCSOC/ 1056485v3/22337-0010 "Improvements" means the acquisition and construction of the Improvements set forth in the Engineer's Report. "Interest Payment Date" means each March 2 and September 2, commencing March 2, 2005. "Investment Agreement" means one or more agreements entered into between the City and an entity or entities whose long term uninsured, unsecured and unguaranteed debt or claims -paying ability is rated as of the date of the Investment Agreement in either of the two highest categories (without regard to gradations of plus and minus within such categories) by Standard & Poor's Rating Services or Moody's Investors Service, or an Investment Agreement between the District, and an entity which is rated as of the date of the Investment Agreement in either of the two highest categories (without regard to gradations of plus and minus within such categories) by Standard & Poor's Rating Services or Moody's Investors Service. "1913 Act" means the Municipal Improvement Act of 1913, being Division 12 (commencing with Section 10000) of the California Streets and Highways Code. "1915 Act" means the Improvement Bond Act of 1915, being Division 10 (commencing with Section 8500) of the California Streets and Highways Code. "Owner" means, with respect to the Bond, the person shown as the owner thereof in the Bond Register. "Purchase Agreement" means the bond purchase agreement authorized and executed by the City Manager and "Record Date" means the fifteenth day of the month preceding an Interest Payment Date, whether or not such day is a Business Day. "Resolution" means this Resolution of Issuance. "Reserve Requirement" means an amount equal to $3,000 which requirement shall be in cash or Authorized Investments as provided in this Resolution. "Resolution of Intention" means Resolution No. 04-6334, adopted by the City Council of the City on April 27, 2004, stating the City's intention, among other things, to issue the Bond. "Resolution of Issuance" means Resolution No. 04- adopted by the City Council of the City on July 27, 2004, authorizing the issuance of the Bond. "Superintendent of Streets" means the Director of Public Works or his or her designee. "Tax Certificate" means the Tax Certificate delivered upon the issuance of the Bond. "Tax -Exempt" means, with reference to an Authorized Investment, as Authorized Investment described as a tax-exempt obligation in the Tax Certificate. "Treasurer" means the Treasurer of the City or his or her designee. 4 DOCSOC/ 1056485v3/22337-0010 SECTION 2. Interpretation. (a) Unless the context otherwise indicates, words expressed in the singular shall include the plural, and vice versa and the use of the neuter, masculine, or feminine gender is for convenience only and shall be deemed to mean and include the neuter, masculine or feminine gender, as appropriate. (b) Headings of articles and sections herein and the table of contents hereof are solely for convenience of reference, do not constitute a part hereof and shall not affect the meaning, construction or effect hereof. SECTION 3. Pledge of Assessments; No Obligation to Cure Deficiency. Pursuant to the 1913 Act, the 1915 Act and this Resolution, the payment of the interest on and principal of the Bond and any premiums upon the prepayment thereof shall be exclusively paid from the Assessments and moneys on deposit in the Redemption Fund and the Reserve Fund which are hereby set aside for the payment of the Bond. The Assessments and any interest earned on the funds established herein shall constitute a trust fund held for the benefit of the Owner of the Bond to be applied to the payment of the interest on, premium, if any, and principal of the Bond and so long as principal and interest on any of the Bond remains unpaid shall not be used for any other purpose, except as permitted by the 1913 Act, the 1915 Act or this Resolution. Pursuant to Streets and Highways Code Section 8769, this City Council provided in the Resolution of Intention that the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the Redemption Fund to be established for the payment of the Bond. SECTION' 4. Unpaid Assessments. The assessments now remaining unpaid, and the aggregate thereof, are as shown on the list of unpaid assessments on file in the office of the Treasurer of the City, in the aggregate amount of $ . For a particular description of the lots or parcels of land bearing the respective assessment numbers upon which assessments remain unpaid, severally and respectively, reference is hereby made to the assessment and to the diagram recorded in the office of the Superintendent of Streets. SECTION 5. Issuance of the Bond. The Bond shall be issued upon the security of said unpaid assessments in the aforesaid amount, in accordance with the provision of Division 10 of the Streets and Highways Code of the State of California and the proceedings thereunder duly had and taken, for the purpose of issuing the Bond. Said Bond shall be designated "United States of America, State of California, County of Los Angeles, City of Hermosa Beach, Limited Obligation Improvement Bonds, Assessment District No. 2004-1 (Beach Drive)", and shall be in the denomination of $ with principal amounts maturing on September 2 of each year as hereinafter set forth: BOND MATURING 2005 2006 2007 2008 DOCSOC/1056485 v3/22337-0010 AMOUNT 5 BOND MATURING 2018 2019 2020 2021 AMOUNT 2009 2022 2010 2023 2011 2024 2012 2025 2013 2026 2014 2027 2015 2028 2016 2029 2017 2030 The Bond shall be in the form of a fully registered Bond without coupons and shall be initially dated the delivery date. The Bond shall be substantially in the form set forth in Exhibit "A" hereto attached and by reference made a part hereof. SECTION 6. Interest. The Bond shall bear interest on the unpaid principal amount thereof at the rate of % per annum, payable on March 2, 2005, and semiannually thereafter on September 2 and March 2 of each year. Interest on the Bond shall be calculated on the basis of 360 - day year consisting of twelve 30 -day months. The Bond shall bear interest from the interest payment date next preceding the date of registration thereof unless: (i) it is registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or (ii) it is registered on or prior to February 15, 2005, in which event it shall bear interest from the date thereof. Registration of the Bond issued upon exchanges and transfers the Bond shall be dated so that no gain or loss of interest shall result from the exchange or transfer. Interest and principal on the Bond shall be paid by the Treasurer by check mailed on the interest payment date to the registered owner of the Bond as the name and address appear on the register kept by the Treasurer at the close of business on the fifteenth (15th) day of the month preceding the interest payment date. The Bond shall continue to bear interest after maturity at the rate stated therein, provided that payment thereof is refused on the sole ground that there is not sufficient money in the Redemption Fund hereinafter referred to with which to pay same. SECTION 7. Execution and Authentication. The Bond shall be signed on behalf of the City by the Treasurer and the City Clerk and the corporate seal of the City shall be affixed to the Bond. Such signatures and the City seal may be reproduced on the Bond by engraved, printed, typed or lithographed facsimile thereof, and such signing and sealing shall constitute and be a sufficient and binding execution of the Bond. If any officer whose signature appears on the Bond ceases to be such officer before the delivery of the Bond to the purchaser, such signature shall be as valid as if such officer remained in office until the delivery of the Bond. The Bond shall have typed, printed or engraved thereon a certificate of authentication and registration, substantially in the form set forth in Exhibit "A," hereto attached and by reference made a part hereof, duly executed by manual signature of the Treasurer. The Bond shall not be valid or obligatory for any purpose under this Resolution unless and until such certificate of authentication and registration shall have been duly executed by the Treasurer, and such certificate of the Treasurer upon any the Bond shall be conclusive and the only evidence that the Bond has been duly authenticated and delivered under this Resolution. 6 DOCSOC/ 1056485v3/2233 7-0010 • • SECTION 8. Manner and Place of Payment. The principal on the Bond shall be payable in lawful money of the United States of America. Interest and principal on the Bond shall be paid by the Treasurer by check as provided in Section 6 of this Resolution. SECTION 9. Provisions for the Prepayment of All or a Portion of the Principal of the Bond. (a) Prepayment from Assessment Prepayments. On an Interest Payment Date, money in the Prepayment Account of the Redemption Fund from the proceeds of prepayments of Assessments, a portion of the principal amount of the Bond shall be called for prepayment as provided in Part 11.1 of the 1915 Act and this Resolution. The Bond, or any portion of the principal thereof in inverse order of maturity, may be prepaid in advance of maturity on any Interest Payment Date in any year by giving notice to the Owner thereof as provided in this Resolution and by paying the principal amount thereof, plus interest to the date of prepayment, together with a prepayment premium equal to three percent (3.00%) of the principal of the Bond to be prepaid. Nothing in this Resolution shall preclude the prepayment prior to maturity of the Bond from proceeds of a refunding bond or bonds issued under the Refunding Act of 1984 for 1915 Improvement Act Bonds or under any other law of the State of California. (b) Selection of the Maturity Bonds for Prepayment. If less than all of the Bond is to be prepaid, the Treasurer shall designate the principal amount of a maturity to be prepaid. (c) Notice of Prepayment. When any principal amount of the Bond is to be called for prepayment under this Section, the Treasurer shall give notice, in the name of the City, of the prepayment of such principal amount of the Bond. Such notice of prepayment shall (A) specify the portion of a maturity and the maturity date or dates of the Bond selected for prepayment, except that where the Bond in its entirety is subject to prepayment, the maturity dates need not be given; (B) state the date fixed for prepayment; and (C) state the prepayment price. Such notice shall further state that on the date fixed for prepayment, there shall become due and payable on the Bond or portion thereof called for prepayment, the principal thereof, together with any premium, and interest accrued to the prepayment date, and that from and after such date, interest thereon shall cease to accrue and be payable. At least thirty (30) days but no more than sixty. (60) days prior to the prepayment date, the Treasurer shall mail a copy of such notice, by registered or certified mail, postage prepaid, to the Owner of the Bond a portion of which is to be prepaid at their addresses appearing on the Bond Register. The actual receipt by the Owner of the Bond of notice of such prepayment shall not be a condition precedent thereto, and failure to receive such notice shall not affect the validity of the proceedings for the prepayment of the Bond or any principal amount thereof, or the cessation of interest on the prepayment date. A certificate by the Treasurer that notice of such prepayment has been given as herein provided shall be conclusive as against all parties. (d) Effect of Notice and Availability of Prepayment Money. Notice of prepayment having been duly given, as provided in this Section, and the amount necessary for the prepayment having been made available for that purpose and being available therefor on the date fixed for such prepayment: (i) the Bond, or portions thereof, designated for prepayment shall, on the date fixed for prepayment, become due and payable at the prepayment price thereof as provided in this Resolution, anything in this Resolution or in the Bond to the contrary notwithstanding; 7 DOCSOC/ 1056485v3/22337-0010 • • (ii) the Treasurer shall pay to the Owner of the Bond the prepayment price and shall keep a record of the prepayment, which record shall be conclusive evidence of such prepayment; (iii) after the prepayment date the Bond or portions thereof so designated for prepayment shall be deemed to be no longer outstanding and the Bond or said portions thereof shall cease to bear further interest; and (iv) after the date fixed for prepayment the Owner of the Bond as to the principal amount thereof so designated for prepayment shall not be entitled to any of the benefits of this Resolution, or to any other rights, except with respect to payment of the prepayment price and interest accrued to the prepayment date from the amounts so made available. SECTION 10. Bond Register, Transfer and Registration. The Bond issued under this Resolution shall be subject to the provisions for registration and transfer contained in this Resolution and in the Bond. So long as any of the Bond shall remain outstanding, the Treasurer shall maintain and keep, at its office in Hermosa Beach, California, a Bond Register, being sufficient books for the registration or transfer of the Bond, and, upon presentation of the Bond for registration or transfer at said office, the Treasurer shall register or cause to be registered therein, and permit to be transferred thereon, under such reasonable regulations as the City or the Treasurer may prescribe, the Bond entitled to registration or transfer. So long as any of the Bond remains outstanding, the City shall make all necessary provisions to permit the exchange of the Bond at. said office of the Treasurer. SECTION 11. Transfer of Bond. (a) The Bond shall be transferable only upon the Bond Register of the Treasurer referred to in Section 10 of this Resolution by the registered owner thereof in person or by his attorney duly authorized in writing, upon surrender thereof, together with a written instrument of transfer satisfactory to the Treasurer duly executed by the registered owner or his duly authorized attorney. Upon the transfer of any the Bond, the Treasurer shall issue in the name of the transferee a new Bond of the same aggregate principal amount and maturity, except for any maturity or portion thereof prepaid, as the surrendered Bond. (b) The Treasurer may deem and treat the person in whose name the outstanding Bond shall be registered upon said Bond Register of the Treasurer as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal, or prepayment price, if any, of and interest on such Bond and for all other purposes. All such payments so made to any such registered owner or upon his order shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid, and neither the City nor the Treasurer shall be affected by any notice to the contrary. SECTION 12. Regulations with Respect to Exchanges and Transfers. In all cases in which the privilege of exchanging or transferring Bond is exercised, the City shall execute and the Treasurer shall authenticate and deliver the new bond in accordance with the provisions of this Resolution. The Bond surrendered in any such exchanges or transfers shall be canceled and retired by the Treasurer or destroyed as permitted by law. For every such exchange or transfer of the Bond, whether temporary or definitive, the Treasurer may impose a charge sufficient to reimburse them for any tax, fee or other governmental charge required to be paid with respect to such exchange or transfer (other than such as may have been imposed by the City), which sum or sums shall be paid by 8 DOCSOC/1056485 v3/22337-0010 • • the person requesting such exchange or transfer as a condition precedent to the exercise of the privilege of making such exchange or transfer. The Treasurer shall not be required to make any such exchange or registration of transfer during the fifteen days immediately preceding any March 2 or September 2. SECTION 13. Mutilated, Destroyed, Stolen or Lost Bond. In case the Bond shall become mutilated or be destroyed, stolen or lost, the City shall execute and the Treasurer shall authenticate and deliver a new Bond of like maturity and principal amount, except for any maturity or portion thereof prepaid, as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such a mutilated Bond, upon surrender and cancellation of the mutilated Bond or in lieu of and in substitution for a destroyed, stolen or lost Bond, upon filing with the Treasurer evidence satisfactory to the Treasurer that the Bond has been destroyed, stolen or lost and proof of ownership thereof, and upon furnishing the Treasurer with indemnity satisfactory to each, complying with such other reasonable regulations as the Treasurer may incur. The Bond so surrendered to the Treasurer shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 14. Preparation of the Definitive Bond; Temporary Bond. The definitive Bond shall be typed on security paper, lithographed or printed on steel engraved borders at the option of the City. Until the definitive Bond is prepared, the City may execute, in the same manner as is provided in Section 7, and the Treasurer may authenticate and deliver, in lieu of the definitive Bond, but subject to the same provisions, limitations and conditions as the definitive Bond. The temporary Bond (which shall be registered as to principal and interest), substantially of the tenor of the definitive Bond in lieu of which such temporary Bond is issued and with such omissions or insertions of and variations from the terms and conditions thereof as may be appropriate to temporary Bond. The City at its expense shall prepare and execute, and the Treasurer upon the surrender of such temporary Bond for exchange and the cancellation of such surrendered temporary Bond, without charge to the holder thereof, shall authenticate and deliver in exchange therefor, at the office of the Treasurer in Hermosa Beach, California, the definitive Bond of the same aggregate principal amount and maturity as the temporary Bond which shall in all respects be entitled to the same benefits and security as definitive Bond issued pursuant to this resolution. All temporary Bond surrendered in exchange for the definitive Bond shall be canceled and retired by the Treasurer or destroyed as permitted by law. SECTION 15. Redemption Fund. The City shall keep a Redemption Fund designated Assessment District No. 2004-1 (Beach Drive) Redemption Fund (the "Redemption Fund"). All sums received by the Treasurer from the collection of the Assessments and of the interest and penalties thereon shall be deposited in the Redemption Fund, except the amount of delinquent Assessments that are deposited in the Reserve Fund to replace amounts withdrawn from the Reserve Fund to pay debt service because of delinquencies and the money deposited in the Administrative Expense Fund. The City shall disburse moneys from the Redemption Fund to pay the principal and interest on the Bond when due thereon. 9 DOCSOC/ 1056485v3/22337-0010 • • SECTION 16. Prepayment Account. Moneys set aside in the Prepayment Account, which the City shall establish in the Redemption Fund, shall be used solely for the purpose of prepaying all or a portion of the principal amount of the Bond and shall be applied on or after the prepayment date to the payment of principal of and premium, if any, on the principal Bond to be repaid. Upon receiving any prepayment of an Assessment, the Treasurer shall deposit such prepayment in the Prepayment Account, which when coupled with the moneys transferred from the Reserve Fund pursuant to Section 19 to the Prepayment Account, shall be used, to redeem Bonds on the next Interest Payment Date for which proper notice pursuant to Section 9 can be given by the Treasurer. If less than all of the prepayment of an Assessment, together with the money transferred from the Reserve Fund, can be used to redeem Bonds in increments of $5,000, the remaining portion of the prepayment is to be retained in the Prepayment Account and, when at the determination of the District there is sufficient money to redeem Bonds shall be used to redeem Bonds as herein provided. SECTION 17. Bond Proceeds. From the proceeds from the sale of the Bond, the Treasurer shall place the accrued interest, if any, in the Redemption Fund, $3,000 in the Reserve Fund and the balance shall be placed in the Improvement Fund to pay for the Improvements and Incidental Expenses, as set forth in the Engineer's Report For Assessment District No. 2004-1 (Beach Drive) approved by the City Council on June 22, 2004 and the amount to reimburse the City for the moneys advanced by the City for the acquisition and construction of the Improvements, and the moneys in said funds shall be used only for the purposes set forth herein and as permitted by the Act. SECTION 18. Improvement Fund. The Treasurer shall deposit in a special fund hereby created and designated the "Assessment District No. 2004-1 (Beach Drive) Improvement Fund" (the "Improvement Fund") the amount set forth in Section 17 hereof. All moneys in the Improvement Fund shall be applied exclusively to acquire and construct the Improvements and to reimburse the District for amounts paid by the City for the costs of the Improvements and acquisitions described in the Resolution of Intention, as now or hereafter amended or changed by appropriate change and modification proceedings, and all Incidental Expenses. Any surplus remaining in the Improvement Fund after the payment for the Improvement and all Incidental Expenses shall be transferred to the Redemption Fund and used as provided in Section 10427 of the Streets and Highways Code of the State of California. SECTION 19. Reserve Fund. The Treasurer shall establish a fund designated the Assessment District No. 2004-1 (Beach Drive) Reserve Fund (the "Reserve Fund"). The City agrees to deposit in the Reserve Fund from Bond proceeds $3,000. Money in the Reserve Fund shall be used solely for the purpose of paying the principal of and interest on the Bond when due in the event that the moneys in the Redemption Fund are insufficient therefor. The Treasurer shall withdraw moneys as necessary from the Reserve Fund for deposit in the Redemption Fund on or before the first day of March and September of each year. In the event an Assessment is prepaid in whole or in part, the Assessment thus prepaid shall be reduced by an amount equal to that proportionate of the amount in the Reserve Fund at the time of said prepayment attributable to the amount of the Assessment prepaid, and the amount thus determined shall be transferred from the Reserve Fund to the Prepayment Account of the Redemption Fund. 10 DOCSOC/ 1056485v3/22337-0010 • • In the event that moneys comprising (i) the Reserve Fund and (ii) the Redemption Fund are sufficient to retire the outstanding Bond plus accrued interest thereon, such moneys in the Reserve Fund shall be transferred to the Redemption Fund for the payment of the Bond. All amounts remaining in the Reserve Fund in the year in which the last Assessment Installments become due and payable shall be credited toward said Assessments as provided above. In the event money is withdrawn from the Reserve Fund and transferred to the Redemption Fund to pay debt service on the Bond, the City shall deposit in the Reserve Fund any money received from the payment of delinquent Assessments made by the owner of delinquent property or as a result of any foreclosure action to replace the amount withdrawn from the Reserve Fund. SECTION 20. Administrative Expense Fund. Upon receipt of the Assessment Installments, the Treasurer shall deposit the amounts designated as the Administrative Expense Requirement to the Administrative Expense Fund. The Treasurer shall apply the moneys on deposit in the Administrative Expense Fund for payment of Administrative Expenses. Fees or charges incurred by the City in performance of their respective obligations hereunder shall be paid from the Administrative Expense Fund, except that the fees or charges payable to the County for enrolling the levy shall be retained by the County prior to making an apportionment pursuant to the provisions of Section 8682 of the 1915 Act and shall not be transferred to the Treasurer or considered part of the apportionment. All fees or charges of the City shall be reimbursed or satisfied by the collection of such fees or charges or estimates thereof with the principal of and interest on the Assessment Installments due at the time of such collection. The amount of any such fees, charges or estimates thereof shall be apportioned pro rata and shall be collected with the same collection and enforcement procedures and with the same priority and effect as with respect to the collection of the principal of and interest on the Assessments. SECTION 21. Treasurer. This City Council hereby appoints the Treasurer to act as paying agent, transfer agent and registrar for the Bond (the "Treasurer"). SECTION 22. Cumulative Remedy. This City Council covenants that, pursuant to Part 14 (commencing with Section 8830) of Division 10 of the Streets and Highways Code of the State of California, when the delinquency reported by the Auditor of the County of Los Angeles of any property owner is equal to $1,000, it will order and cause to be commenced and thereafter diligently prosecute an action in the Superior Court of California in and for the County of Los Angeles to foreclose the lien of any and all such delinquent assessments or of any interest thereon. SECTION 23. Unpaid Assessments as Trust Fund. The unpaid Assessments shown on the assessment roll on file in the office of the Superintendent of Streets are determined by this City Council to be correct, and said unpaid Assessments, together with the interest thereon, shall remain and constitute a trust fund for the prepayment and payment of the Bonds and of the interest which may be due thereon. SECTION 24. Federal Tax Covenants. Notwithstanding any other provision of this Resolution, absent an opinion of Bond Counsel that the exclusion from gross income of interest on the Bond will not be adversely affected for federal income tax purposes, the City covenants to comply with all applicable requirements of the Code necessary to preserve such exclusion from gross income and specifically covenants, without limiting the generality of the foregoing, as follows: 11 DOCSOC/ 1056485v3/22337-0010 • • (a) Private Activity. The City will not take or omit to take any action or make any use of the proceeds of the Bond or of any other monies or property which would cause the Bond to be a "private activity bond" within the meaning of Section 141 of the Code; (b) Arbitrage. The City will make no use of the proceeds of the Bond or of any other amounts or property, regardless of the source, or take or omit to take any action which will cause the Bond to be an "arbitrage bond" within the meaning of Section 148 of the Code; (c) Federal Guarantee. The City will make no use of the proceeds of the Bond or take or omit to take any action that would cause the Bond to be "federally guaranteed" within the meaning of Section 149(b) of the Code; (d) Information Reporting. The City will take or cause to be taken all necessary action to comply with the informational reporting requirement of Section 149(e) of the Code; (e) Hedge Bond. The City will make no use of the proceeds of the Bond or any other amounts or property, regardless of the source, or take or omit to take any action that would cause the Bond to be considered "hedge bonds" within the meaning of Section 149(g) of the Code, unless the City takes all necessary action to assure compliance with the requirements of Section 149(g) of the Code to maintain the exclusion from gross income of interest on the Bond for federal income tax purposes; and (f) Miscellaneous. The City will take no action inconsistent with its expectations stated in the Tax Certificate and will comply with the covenants and requirements stated therein and incorporated by reference herein. SECTION 25. Rebate Fund. The City does not intend to issue tax exempt securities in 2004 in excess of $5,000,000 and therefore, the arbitrage provisions relating to the Bond do not apply. In the event the City issues tax exempt securities in 2004 in excess of $5,000,000, the following procedure shall apply. (a) Establishment of Rebate Fund. The Treasurer shall establish a special fund with respect to the Bond and the City and the Treasurer shall comply with the requirements below. All money at any time deposited in the Rebate Fund shall be held by the Treasurer in trust, for payment to the United States Treasury. All amounts on deposit in the Rebate Fund shall be governed by this Section 25 and the applicable Tax Certificate, unless the City obtains an opinion of Bond Counsel that the exclusion from gross income of interest on the Bond will not be adversely affected for federal income tax purposes if such requirements are not satisfied. (i) Computation. Within 55 days after the end of the fifth Bond Year and each fifth Bond Year thereafter (and the last Bond Year), the City shall calculate or cause to be calculated the amount of rebatable arbitrage, in accordance with Section 148(f)(2) of the Code and Section 1.148-3 of the Rebate Regulations (taking into account any applicable exceptions with respect to the computation of the rebatable arbitrage, described, if applicable, in the Tax Certificate (the "Rebatable Arbitrage"). (ii) Transfer. Within 55 days after the end of each fifth Bond Year, an amount shall be deposited to the Rebate Fund by the Treasurer from any legally available funds of the City, if and to the extent required, so that the balance in the Rebate Fund shall equal the amount 12 DOCSOC/ 1056485v3/22337-0010 • • • of Rebatable Arbitrage so calculated in accordance with (i) above. In addition, within 55 days after the payment of the Bond an amount shall be deposited to the Rebate Fund by the Treasurer from any legally available funds of the City, if and to the extent required, so that the balance in the Rebate Fund shall equal the amount of Rebatable Arbitrage so calculated in accordance with (i) above. (iii) Payment to the Treasury. The Treasurer shall pay to the United States Treasury, out of amounts from the Rebate Fund, (A) Not later than 60 days after the end of (a) the fifth Bond Year, and (b) each fifth Bond Year thereafter, an amount equal to at least 90% of the Rebatable Arbitrage calculated as of the end of such Bond Year; and (B) Not later than 60 days after the payment of the Bond, an amount equal to 100% of the Rebatable Arbitrage calculated as of the end of such Bond Year, and any income attributable to the Rebatable Arbitrage, computed in accordance with Section 148(f) of the Code. In the event that, prior to the time of any payment required to be made from the Rebate Fund, the amount in the Rebate Fund is not sufficient to make such payment when such payment is due, the City shall calculate or cause to be calculated the amount of such deficiency and transfer to the Rebate Fund an amount received from any legally available source of the City, equal to such deficiency in the Rebate Fund prior to the time such payment is due. Each payment required to be made pursuant to this Section shall be made to the Internal Revenue Service Center, Philadelphia, Pennsylvania 19255 on or before the date on which such payment is due, and shall be accompanied by Internal Revenue Service Form 8038-T provided to the Treasurer in a completed form by the City, or shall be made in such other manner as provided under the Code as directed in writing by the City. (b) Disposition of Unexpended Funds. Any funds remaining in the Rebate Fund after prepayment and payment of the Bond and the payments described in (iii) above, shall be transferred to the City's general fund. (c) Survival of Defeasance. Notwithstanding anything in this Section or the Resolution to the contrary, the obligation to comply with the requirements of this Section shall survive the defeasance of the Bond. SECTION 26. Incontestability. After the sale and delivery of the Bond by the City, the Bond shall be incontestable by the City. SECTION 27. Contract with the Bond Owner. The provisions of this Resolution and of any other resolution supplementing or amending this Resolution shall constitute a contract between the City and the Owner of the Bond, and such provisions shall be enforceable by the Bond Owner by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California. No remedy conferred hereby upon the Bond Owner is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by law. 13 DOCSOC/ 1056485v3/22337-0010 • • No waiver of any default or breach of duty or contract by the Bond Owner shall affect any subsequent default or breach of duty or contract or shall impair any right or remedies on said subsequent default or breach. No delay or omission of the Bond Owners to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any default or acquiescence therein. Every substantive right and every remedy conferred upon the Bond Owners may be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and should said suit, action or proceeding be abandoned, or be determined adversely to the Bond Owner, then, the City and the Bond Owners shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken. SECTION 28. Cessation of Agreements. When the Bond and all interest to accrue thereon have been fully paid and discharged, the agreements in this Resolution contained shall cease and terminate, and the City shall be under no further obligation to do or perform any of the covenants, conditions or agreements in this Resolution contained. SECTION 29. Partial Invalidity. If any section, subsection, sentence, clause or phrase of this Resolution shall be for any reason held by a court of competent jurisdiction to be unconstitutional, invalid or unenforceable, such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable, and such holding shall not affect the validity of the remaining portions hereof. This City Council hereby declares that it would have passed this Resolution and each section, subsection, sentence, clause or phrase hereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared to be unconstitutional, invalid or unenforceable. SECTION 30. Liberal Construction. This Resolution shall be liberally construed to the end that its purpose may be effected. No error, irregularity or informality and no neglect or omission herein or in any proceeding had pursuant hereto which does not directly affect the jurisdiction of this City Council shall void or invalidate this resolution or such proceeding or any part thereof, or any act or determination made pursuant thereto. SECTION 31. Approval of the Sale and Delivery of the Bond. The sale of the Bond to at the price and interest rate specified in the Bond Purchase Agreement dated as of , 20_ is hereby approved. The Treasurer is hereby authorized and directed to authenticate the Bond and to deliverit to upon payment of the purchase price thereof. SECTION 32. Authorization of Officers. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bond, and otherwise to effectuate the purposes of this Resolution, and such actions previously taken by such officers are hereby ratified and confirmed. SECTION 33. Effective Date. This Resolution shall become effective upon adoption. 14 DOCSOC/ 1056485v3/22337-0010 PASSED, APPROVED and ADOPTED this 27th day of July, 2004. PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM: City Clerk City Attorney 15 DOCSOC/ 1056485v3/22337-0010 • • EXHIBIT A [FACE OF BOND] UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH LIMITED OBLIGATION IMPROVEMENT BOND ASSESSMENT DISTRICT NO. 2004-1 (BEACH DRIVE) No. 1 $ Pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code and under and by virtue of the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code (the "Act"), City of Hermosa Beach, County of Los Angeles, State of California (the "City"), will, out of the Redemption Fund for the payment of the bond issued upon the unpaid portion of assessments made for the work and improvements on certain streets and rights of way in Assessment District No. 2004-1 (Beach Drive) more fully described in the resolution of intention, Resolution No. 04-6334 adopted by the City Council of the City on April 27, 2004 (the "Resolution of Intention"), pay to , or registered assigns the principal sum of Dollars ($ ), in lawful money of the United States of America on September 2 in each of the years and installments of principal as follows: MATURITY MATURITY MATURITY MATURITY DATES AMOUNT DATES AMOUNT 2005 2018 2006 2019 2007 2020 2008 2021 2009 2022 2010 2023 2011 2024 2012 2025 2013 2026 2014 2027 2015 2028 2016 2029 2017 2030 and in like manner will pay interest from the interest payment date next preceding the date on which this bond is authenticated, unless this bond is authenticated and registered as of an interest payment date, in which event it shall bear interest from such interest payment date, or unless this bond is authenticated and registered on or prior to February 15, 2005, in which event it shall bear interest A-1 DOCSOC/ 1056485v3/22337-0010 • • from its date, until payment of such principal sum shall have been discharged, at the rate of per annum, payable semiannually on March 2 and September 2 in each year commencing on March 2, 2005. The principal installments hereof and the interest hereon are payable by check mailed to the owner hereof at the owner's address as it appears on the records of the Treasurer of the City, acting as transfer agent, registrar and paying agent (the "Treasurer"), or at such address as may have been filed with the Treasurer for that purpose, as of the fifteenth day of the month immediately preceding each interest payment date. Each installment of principal will continue to bear interest after maturity at the rate above stated; provided, at maturity and payment thereof is refused upon the sole ground that there are not sufficient moneys in said Redemption Fund with which to pay same. This Bond shall not be entitled to any benefit under the Act or the Resolution of Issuance of the Limited Obligation Improvement Bond for Assessment District No. 2004-1 (Beach Drive), Resolution No. (the "Resolution of Issuance"), or become valid or obligatory for any purpose, until the certificate of authentication and registration hereon endorsed shall have been dated and signed by the manual signature of the Treasurer. This Bond is issued by the City under the Act and the Resolution of Issuance, for the purpose of providing means for paying for the work and improvements described in the Resolution of Intention, and is secured by the moneys in the Redemption Fund established by the Resolution of Issuance and by the unpaid portion of assessments made for the purpose of said work, and, including principal and interest, is payable exclusively out of said fund. This Bond is transferable by the registered owner hereof, in person or by the owner's attorney duly authorized in writing, at the office of the Treasurer in Hermosa Beach, California, subject to the terms and conditions provided in the Resolution of Issuance, including the payment of certain charges, if any, upon surrender and cancellation of this Bond. Upon such transfer, a new registered bond of the same maturities, for the same aggregate principal amount, except the new bond shall reflect a maturity or portion thereof prepaid, will be issued to the transferee in exchange therefor. The City shall not be required to make such exchange or registration of transfer of bonds during the 15 days immediately preceding any interest payment date. The Treasurer may treat the owner hereof as the absolute owner for all purposes, and the Treasurer shall not be affected by any notice to the contrary. This Bond or any portion of it may be prepaid and paid in advance of maturity as provided in the Resolution of Issuance upon the 2nd day of March or September in any year by giving at least 30 days' notice by registered mail to the registered owner hereof at the owner's address as it appears on the registration books of the Treasurer by paying the principal amount to be prepaid and interest on said amount to the date of prepayment, with a premium of 3% of the principal amount prepaid. ALL OR A PORTION OF AN INSTALLMENT OF PRINCIPAL MAY HAVE BEEN PREPAID FROM THE PREPAYMENT OF ASSESSMENTS. THE RECORD OF PREPAYMENT OF AN INSTALLMENT OF PRINCIPAL IS ON FILE IN THE OFFICE OF THE TREASURER. A-2 DOCSOC/ 1056485 v3/22337-0010 • • IN WITNESS WHEREOF, said City has caused this Bond to be signed by the Treasurer of said City and its City Clerk by their manual signatures, and sealed with the corporate seal of the City hereon all as of the day of , 2004. City Clerk of the City of Hermosa Beach Treasurer of the City of Hermosa Beach [SEAL] A-3 DOCSOC/ 1056485 v3/22337-0010 ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sell(s), assign(s) and transfer(s) unto [PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE] [Please print or typewrite name and address including postal zip code of assignee] the within Bond of the City, County of Los Angeles, California, and does hereby irrevocably constitute and appoint Attorney to transfer said Bond on the books of the Treasurer of the City, as Transfer Agent, and Registrar, with full power of substitution in the premises. Dated: NOTICE: The signature to this assignment must correspond with the name as written upon the face of the within Bond in every particular without alteration or enlargement, or any change whatsoever. A-4 DOCSOC/ 1056485v3/22337-0010 AUTHENTICATION AND REGISTRATION This is one of the bonds described in the within mentioned Resolution of Issuance, which was registered on , 2004 to: Name of Address of Registered Owner Registered Owner By: Treasurer of the City of Hermosa Beach A-5 DOC SOC/1056485 v3/22337-0010 1 July 15, 2004 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of July 27, 2004 AB2702 (STEINBERG), HOUSING LAW MANDATE SECOND UNITS Recommendation: That the City Council consider taking a position in opposition to AB2702 (Steinberg) approving a letter and directing staff to track the bill. Background: The bill is another state mandate regarding second units on single family residential sites. The proposed legislation is in addition to the requirements imposed last year in AB1866. Less than a year has passed since AB1866 has become effective and it would seem reasonable to wait and see whether or not that legislation is working before adding more requirements on local government. AB2702 is the same approach effectively making local zoning decisions in Sacramento. The attached information goes into some detail about the current proposal. A copy of a proposed letter is also attached. Respectfully submitted, Stephen R. Burrell City Manager 7a July 27, 2004 Assemblyman George Nakano 53rd District State Capitol P.O. Box 942849 Sacramento, CA 94249-0001 • City of 2lermosa T13eacL) Civic Center, 1315 Valley Drive, Hermosa Beach, California 90254-3885 RE: AB 2702 (Steinberg) Housing, Second Units. Notice of Opposition Dear Assemblyman Nakano: We regret to inform you that the City of Hermosa Beach OPPOSES your AB 2702. Local governments are still adjusting to the many mandates imposed by last year's AB 1866 (Wright), which prohibited public hearings on second unit applications, and created many unresolved legal issues with its provisions that authorized a developer of a density bonus project to demand that the local government waive "any ordinance, general plan element, specific plan, charter amendment, or other local law, policy or regulation" or face lawsuits. AB 2702 still attempts to dictate the specific requirements of local zoning ordinances applicable to every neighborhood in the state. This one -size -fits -all approach to second unit development transfers significant local land use authority to Sacramento. Policies in this bill such as those limiting local ability to prohibit absentee -landlord duplexes to be created in single-family neighborhoods, reducing parking standards, dictating irrational minimum lot and unit sizes regardless of lot dimensions have already provoked a reaction from residents. Over 60 cities have expressed their opposition to AB 2702 thus far. Furthermore, the mandated densities for housing on school sites provision in this bill not only usurps local zoning authority, it represents irresponsible planning, with no appreciation or understanding of location, traffic, site conditions, or other local issues. The Legislature has neither investigated the effects of AB 1866, nor the topic of second units in any deliberative way. Less than nine months have passed since the effective date of AB 1866 (Wright), of 2001, which required all second unit applications to be ministerial. The City of Hermosa Beach questions the wisdom of reopening this debate without providing sufficient time to evaluate the impacts of last year's AB 1866, particularly since AB 2702 simply proposes yet another rewrite of local ordinances and imposes a one -size -fits -all approach on every community in the state. Moreover, it seems Assemblyman George Nakano July 27, 2004 Page Two nonsensical to advance a bill of this nature at a time when budget proposals continue to include plans to shift local revenues to the state level to cover deficits. The City of Hermosa Beach strongly urges you to carefully consider the experiences local governments have had with implementation of AB 1866 (Wright) before proceeding with AB 2702. From a city standpoint, this measure effectively zones residential land at the state level. The unfortunate consequence is that this one -size -fits -all approach is likely to increase community opposition to second units in the form of legal challenges and local referenda, rather than encourage their development. Sincerely, Stephen R. Burrell City Manager SRB:rem cc: Senator Debra Bowen League of California Cities AB 2702 Assembly Bill - 1ory COMPLETE BILL HISTORY BILL NUMBER : A.B. No. 2702 AUTHOR : Steinberg TOPIC : Housing: second units. TYPE OF BILL : Active Non -Urgency Non -Appropriations Majority Vote Required State -Mandated Local Program Fiscal Non -Tax Levy S Page 1 of 1 BILL HISTORY 2004 June 22 From committee: Do pass, and re-refer to Com. on APPR. Re-referred. (Ayes 6. Noes 0.). June 9 Referred to Com. on H. & C.D. May 28 In Senate. Read first time. To Com. on RLS. for assignment. May 27 Read third time, passed, and to Senate. (Ayes 50. Noes 21. Page 6175 ) May 25 Read third time, amended, and returned to third reading. May 17 Read second time. To third reading. May 13 From committee: Do pass. (Ayes 13. Noes 7.) (May 12). May 10 Re-referred to Com. on APPR. May 6 From committee chair, with author's amendments: Amend, and re-refer to Com. on APPR. Read second time and amended. Apr. 29 Re-referred to Com. on APPR. Apr. 28 Read second time and amended. Apr. 27 From committee: Amend, do pass as amended, and re-refer to Com. on APPR. (Ayes 5. Noes 3.) (April 21). Apr. 20 Re-referred to Com. on H. & C.D. Apr. 19 From committee chair, with author's amendments: Amend, and re-refer to Com. on H. & C.D. Read second time and amended. Apr. 15 From committee: Do pass, and re-refer to Com. on H. & C.D. Re-referred. (Ayes 6. Noes 2.) (April 14). Mar. 30 Re-referred to Com. on L. GOV. Mar. 26 From committee chair, with author's amendments: Amend, and re-refer to Com. on L. GOV. Read second time and amended. Mar. 11 Referred to Coms. on L. GOV. and H. & C.D. Feb. 22 From printer. May be heard in committee March 23. Feb. 20 Read first time. To print. http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab 2702 bill 20040622 history.html 7/15/2004 AB 2702 Assembly Bill - *ENDED BILL NUMBER: AB 2702 BILL TEXT AMENDED AMENDED IN ASSEMBLY AMENDED IN ASSEMBLY AMENDED IN ASSEMBLY AMENDED IN ASSEMBLY AMENDED IN ASSEMBLY INTRODUCED BY MAY 25, 2004 MAY 6, 2004 APRIL 28, 2004 APRIL 19, 2004 MARCH 26, 2004 Assembly Member Steinberg FEBRUARY 20, 2004 • *4o;1 65563 of, to add Sections 65252.8 and 65917.1 to, and to ropoal 2oction 65262.2 of, the Covernmont Code,— An act to amend Sections 65583 and 65852.2 of, and to add Section 65917.1 to, the Government Code, relating to housing. LEGISLATIVE COUNSEL'S DIGEST AB 2702, as amended, Steinberg. Housing: second units. (1) The Planning and Zoning Law requires the housing element of the general plan of a city or county to include, among other things, a program with a 5 -year schedule of actions that the local government is undertaking or intends to undertake to implement the goals and objectives of the housing element. The program is also required to provide for sufficient sites with zoning that permits owner -occupied and rental multifamily residential use by right. This bill would revise the definition of the phrase "use by right" as specified and state that the changes are declaratory of existing law. (2) The Planning and Zoning Law authorizes a local agency to provide by ordinance for the creation of 2nd units on parcels zoned for a primary single-family and multifamily residence. When the local agency has not adopted an ordinance, it is required to grant a variance or special use permit for the creation of a 2nd unit that complies with statutory requirements but may require the applicant to be an owner -occupant. Existing law specifies the floor area of a permitted 2nd unit and parking requirements. This bill would revise the above requirements, as specified, and would provide that local agency ordinances, regulations, or policies may not preclude or effectively preclude 2nd units unless the local agency makes findings based on substantial evidence, as specified. The bill would prohibit a local agency from adopting an ordinance that requires an owner's dependent or -a caregiver - " "" - --- - - - -- - to occupy the primary dwelling or 2nd unit or that limits occupancy based on familial status, age, or other specified characteristics. The bill would prohibit a local agency from imposing a deed restriction requirement or other specified restriction relating to occupancy, tenure, or other characteristics, as specified. The bill would also, among other things, prohibit a local agency from establishing minimum unit size requirements for attached and detached 2nd units Page 1 of 12 http://info.sen.ca.gov/pub/bill/asm/ab 2701-2750/ab_2702 bill 20040525_amended asm.... 7/15/2004 AB 2702 Assembly Bill - *ENDED • below 550 livable square feet unless requested by the owner and would revise the parking requirements for 2nd units. The bill would authorize a local agency to charge a permit applicant a reasonable fee to cover the costs that it incurs as a result of the enactment of these provisions. (3) The Planning and Zoning Law also requires, when a developer of housing proposes a housing development within the jurisdiction of the local government, that the city, county, or city and county provide the developer with incentives or concessions for the production of lower income housing units within the development if the developer meets certain requirements. The bill would provide, with respect to those incentives, that multifamily and single-family residential use is a permitted use on any parcel zoned and developed for primary or secondary education and residential uses. By increasing the duties of local public officials, the bill would impose a state -mandated local program. (4) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. Vote: majority. Appropriation: no. Fiscal committee: yes. State -mandated local program: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 65583 of the Government Code is amended to read: 65583. The housing element shall consist of an identification and analysis of existing and projected housing needs and a statement of goals, policies, quantified objectives, financial resources, and scheduled programs for the preservation, improvement, and development of housing. The housing element shall identify adequate sites for housing, including rental housing, factory -built housing, and mobilehomes, and shall make adequate provision for the existing and projected needs of all economic segments of the community. The element shall contain all of the following: (a) An assessment of housing needs and an inventory of resources and constraints relevant to the meeting of these needs. The assessment and inventory shall include all of the following: (1) An analysis of population and employment trends and documentation of projections and a quantification of the locality's existing and projected housing needs for all income levels. These existing and projected needs shall include the locality's share of the regional housing need in accordance with Section 65584. (2) An analysis and documentation of household characteristics, including level of payment compared to ability to pay, housing characteristics, including overcrowding, and housing stock condition. (3) An inventory of land suitable for residential development, including vacant sites and sites having potential for redevelopment, and an analysis of the relationship of zoning and public facilities , Page 2of12 http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702bill 20040525_amended asm.... 7/15/2004 AB 2702 Assembly Bill - ENDED I and services to these sites. (4) An analysis of potential and actual governmental constraints upon the maintenance, improvement, or development of housing for all income levels and for persons with disabilities as identified in the analysis pursuant to paragraph (6), including land use controls, building codes and their enforcement, site improvements, fees and other exactions required of developers, and local processing and permit procedures. The analysis shall also demonstrate local efforts to remove governmental constraints that hinder the locality from meeting its share of the regional housing need in accordance with Section 65584 and from meeting the need for housing for persons with disabilities identified pursuant to paragraph (6). (5) An analysis of potential and actual nongovernmental constraints upon the maintenance, improvement, or development of housing for all income levels, including the availability of financing, the price of land, and the cost of construction. (6) An analysis of any special housing needs, such as those of the elderly, persons with disabilities, large families, farmworkers, families with female heads of households, and families and persons in need of emergency shelter. (7) An analysis of opportunities for energy conservation with respect to residential development. (8). An analysis of existing assisted housing developments that are eligible to change from low-income housing uses during the next 10 years due to termination of subsidy contracts, mortgage prepayment, or expiration of restrictions on use. "Assisted housing developments," for the purpose of this section, shall mean multifamily rental housing that receives governmental assistance under federal programs listed in subdivision (a) of Section 65863.10, state and local multifamily revenue bond programs, local redevelopment programs, the federal Community Development Block Grant Program, or local in -lieu fees. "Assisted housing developments" shall also include multifamily rental units that were developed pursuant to a local inclusionary housing program or used to qualify for a density bonus pursuant to Section 65916. (A) The analysis shall include a listing of each development by project name and address, the type of governmental assistance received, the earliest possible date of change from low-income use and the total number of elderly and nonelderly units that could be lost from the locality's low-income housing stock in each year during the 10 -year period. For purposes of state and federally funded projects, the analysis required by this subparagraph need only contain information available on a statewide basis. (B) The analysis shall estimate the total cost of producing new rental housing that is comparable in size and rent levels, to replace the units that could change from low-income use, and an estimated cost of preserving the assisted housing developments. This cost analysis for replacement housing may be done aggregately for each five-year period and does not have to contain a project -by -project cost estimate. (C) The analysis shall identify public and private nonprofit corporations known to the local government which have legal and managerial capacity to acquire and manage these housing developments. (D) The analysis shall identify and consider the use of all federal, state, and local financing and subsidy programs which can be used to preserve, for lower income households, the assisted housing developments, identified in this paragraph, including, but not limited to, federal Community Development Block Grant Program funds, tax increment funds received by a redevelopment agency of the Page 3of12 http://info.sen.ca.gov/pub/bill/asm/ab 2701-2750/ab 2702 bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - ENDED • community, and administrative fees received by a housing authority operating within the community. In considering the use of these financing and subsidy programs, the analysis shall identify the amounts of funds under each available program which have not been legally obligated for other purposes and which could be available for use in preserving assisted housing developments. (b) (1) A statement of the community's goals, quantified objectives, and policies relative to the maintenance, preservation, improvement, and development of housing. (2) It is recognized that the total housing needs identified pursuant to subdivision (a) may exceed available resources and the community's ability to satisfy this need within the content of the general plan requirements outlined in Article 5 (commencing with Section 65300). Under these circumstances, the quantified objectives need not be identical to the total housing needs. The quantified objectives shall establish the maximum number of housing units by income category that can be constructed, rehabilitated, and conserved over a five-year time period. (c) A program which sets forth a five-year schedule of actions the local government is undertaking or intends to undertake to implement the policies and achieve the goals and objectives of the housing element through the administration of land use and development controls, provision of regulatory concessions and incentives, and the utilization of appropriate federal and state financing and subsidy programs when available and the utilization of moneys in a low- and moderate -income housing fund of an agency if the locality has established a redevelopment project area pursuant to the Community Redevelopment Law (Division 24 (commencing with Section 33000) of the Health and Safety Code). In order to make adequate provision for the housing needs of all economic segments of the community, the program shall do all of the following: (1) (A) Identify adequate sites which will be made available through appropriate zoning and development standards and with services and facilities, including sewage collection and treatment, domestic water supply, and septic tanks and wells, needed to facilitate and encourage the development of a variety of types of housing for all income levels, including multifamily rental housing, factory -built housing, mobilehomes, housing for agricultural employees, emergency shelters, and transitional housing in order to meet the community's housing goals as identified in subdivision (b). (i) Where the inventory of sites, pursuant to paragraph (3) of subdivision (a), does not identify adequate sites to accommodate the need for groups of all household income levels pursuant to Section 65584, the program shall provide for sufficient sites with zoning that permits approval of owner -occupied and rental multifamily units to obtain a residential use by right, including density and development standards that could accommodate and facilitate the feasibility of housing for very low and low-income households. (ii) Where the inventory of sites pursuant to paragraph (3) of subdivision (a) does not identify adequate sites to accommodate the need for farmworker housing, the program shall provide for sufficient sites to meet the need with zoning that permits farmworker housing use by right, including density and development standards that could 'accommodate and facilitate the feasibility of the development of farmworker housing for low- and very low income households. (B) For purposes of this subdivision, the phrase "use by right" shall mean that the use does not require a conditional use permit or a planned unit development permit, except when the proposed project is a mixed-use project involving both commercial or industrial uses Page 4 of 12 http://info.sen.ca.gov/pub/bill/asm/ab 2701-2750/ab_2702 bill 20040525_ amended_asm.... 7/15/2004 AB 2702 Assembly Bill - *ENDED • and residential uses. Use by right for all rental housing shall be provided in accordance with subdivision (f) of Section 65589.5. The amendments to this subparagraph made by the act adding this sentence are declaratory of existing law. (C) The requirements of this subdivision regarding identification of sites for farmworker housing shall apply commencing with the next revision of housing elements required by Section 65588 following the enactment of this subparagraph. (2) Assist in the development of adequate housing to meet the needs of low- and moderate -income households. (3) Address and, where appropriate and legally possible, remove governmental constraints to the maintenance, improvement, and development of housing, including housing for all income levels and housing for persons with disabilities. The program shall remove constraints to, or provide reasonable accommodations for housing designed for, intended for occupancy by, or with supportive services for, persons with disabilities. (4) Conserve and improve the condition of the existing affordable housing stock, which may include addressing ways to mitigate the loss of dwelling units demolished by public or private action. (5) Promote housing opportunities for all persons regardless of race, religion, sex, marital status, ancestry, national origin, color, familial status, or disability. (6) (A) Preserve for lower income households the assisted housing developments identified pursuant to paragraph (8) of subdivision (a). The program for preservation of the assisted housing developments shall utilize, to the extent necessary, all available federal, state, and local financing and subsidy programs identified in paragraph (8) of subdivision (a), except where a community has other urgent needs for which alternative funding sources are not available. The program may include strategies that involve local regulation and technical assistance. (B) The program shall include an identification of the agencies and officials responsible for the implementation of the various actions and the means by which consistency will be achieved with other general plan elements and community goals. The local government shall make a diligent effort to achieve public participation of all economic segments of the community in the development of the housing element, and the program shall describe this effort. (d) The analysis and program for preserving assisted housing developments required by the amendments to this section enacted by the Statutes of 1989 shall be adopted as an amendment to the housing element by July 1, 1992. (e) Failure of the department to review and report its findings pursuant to Section 65585 to the local government between July 1, 1992, and the next periodic review and revision required by Section 65588, concerning the housing element amendment required by the amendments to this section by the Statutes of 1989, shall not be used as a basis for allocation or denial of any housing assistance administered pursuant to Part 2 (commencing with Section 50400) of Division 31 of the Health and Safety Code. LEC_ 2. Section 65852.8 is added tc the C CQW0rAM4149,t C 65852.8_ (a) (1) Excopt cc providod in cubdivicionc (a), (d), (e), (f), (Z ), cnd (k), a lcccl agency may, by ordinance, provide for Page 5 of 12 hrip://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - ENDED • en traffic flew. - (ii) .Imp o=e—rea.cenble ctandardc on cocond unitc that include, but prevent adverce impacts on any roal property that is licted in tho (2) When a local agoncy rocoivoc itc firct applic_ticn en or after reimburco it for cectc that it incurc purcuant to thic paragraph, providoc for tho creation of cocond unite_ (C) The lot containc an existing cinglo family dwolling. the ..Waa9 a.. 11 whish thheprepertz—is leeated... dwallingc, ac appropriate (6) Approval by tho local hoalth efficor whoro a privato cewajo Page 6 of 12 http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702_bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - *ENDED • Page 7 of 12 No additional ctandardc, other than those p aro -am to—limit recidgntial�rowth upon the public hoalth, cafety, and welfare would recult from aroac juctify adopting tho crdinanco. ..d a,aopte,1 nt (A) An ownor'c dopondent or carogiver to occupy the primary rectrictc the gale of tho proporty to ownor oocupantc, or (ii) (II) Tho occupant} of oithor unit to bo roctrictod by familial unitc in which rent is chargod and colloctod on a daily bacic. parking, unlocc cpocific find.ingc aro mado that parking in cetbac} http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702_bill 20040525_amended asm.... 7/15/2004 AB 2702 Assembly Bill - ENDED • .)- (j) Ac uced in this cecticn, tho following tormc apply. (1) "Local agency" mocnc a city, county, or city and county-,- whnt.na -gena al law or- u}nnen d.. .+lune F th Ln l.. and Safety Co.de ?S1 a},plieatieas €cr second uni -.. SEC. 2. Section 65852.2 of the Government Code is amended to read: 65852.2. (a) (1) -Any- Except as provided in subdivisions (c) , (d) , (e) , (f) , (99, and 00, a local agency may, by ordinance, provide for the creation of second units in single-family and multifamily residential zones. The ordinance may do any of the following: (A) Designate areas within the jurisdiction of the local agency where second units may be permitted. The designation of areas may be based on criteria, that may include, but are not limited to, the adequacy of water and sewer services and the impact of second units on traffic flow. (B) Impose reasonable standards on second units that include, but are not limited to, parking, height, setback, lot coverage, architectural review, maximum size of a unit, and standards that prevent adverse impacts on any real property that is listed in the California Register of Historic Places. (C) Provide that second'units do not exceed the allowable density for the lot upon which the second unit is located, and that second units are a residential use that is consistent with the existing general plan and zoning designation for the lot. (2) The ordinance shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. Page 8 of 12 http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702 bill 20040525_amended asm.... 7/15/2004 AB 2702 Assembly Bill - JIVED • (3) When a local agency receives its first application on or after July 1, 2003, for a permit pursuant to this subdivision, the application shall be approved or disapproved ministerially without discretionary review or a hearing, notwithstanding Section 65901 or 65906 or any local ordinance regulating the issuance of variances or special use permits. Nothing in this paragraph may be construed to require a local government to adopt or amend an ordinance for the creation of second units. A local agency may charge a fee to reimburse it for costs that it incurs as a result cf amensdmeatc pursuant to this paragraph ' - - , including the costs of adopting or amending any ordinance that provides for the creation of second units. (b) (1) When a local agency which that has not adopted an ordinance governing second units in accordance with subdivision (a) or (c) receives its first application on or a.ftor July 1, 1flg _ for a permit pursuant to this subdivision, ,the local agency shall accept the application and approve or disapprove the application ministerially without discretionary review pursuant to this subdivision unless it adopts an ordinance in accordance with subdivision (a) or (c) within 120 days after receiving the application. Notwithstanding Section 65901 or 65906, a local agency chill grant may not require a variance or --cpocia discretionary permit for the creation of a second unit if tho and shall approve an application for a second unit that complies with all of the following: (A) The unit is not intended for sale and may be rented. (B) The lot is zoned for single-family or multifamily use. (C) The lot contains an existing single-family dwelling. (D) The second unit is either attached to the existing dwelling or detached from the existing dwelling and located on the same lot as the existing dwelling. (E) (F) Tho total aroa of flcorcpaco for a dotachod cocond unit chall Requirements relating to height, setback, lot coverage, architectural review, site plan review, fees, charges, and other zoning requirements generally applicable to - the primary in which the property is located. dwelling —44 (F) Local building code requirements which apply to detached dwellings, as appropriate. (G) Approval by the local health officer where a private sewage disposal system is being used, if required. (H) The increased floor area of an attached second unit is not less than 550 square feet, unless requested by the owner. (I) The total floor area of a detached second unit is not less than 550 square feet, unless requested by the owner. (2) No other local ordinance, policy, or regulation shall be the basis for the denial of a building permit or a use permit under this subdivision. (3) This subdivision establishes the maximum standards that local agencies shall use to evaluate proposed second units on lots zoned Page 9of12 http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702 bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - ENDED • for residential use which contain an existing single-family dwelling. No additional standards, other than those provided in this subdivision or subdivision (a), shall be utilized or imposed (4) No changes in zoning ordinances or other ordinances or any changes in the general plan shall be required to implement this subdivision. Any local agency may amend its zoning ordinance or general plan to incorporate the policies, procedures, or other provisions applicable to the creation of second units if these provisions are consistent with the limitations of this subdivision. (5) A second unit which that conforms to the requirements of this subdivision shall not be considered to exceed the allowable density for the lot upon which it is located, and shall be deemed to be a residential use whish that is consistent with the existing general plan and zoning designations for the lot. The second units shall not be considered in the application of any local ordinance, policy, or program to limit residential growth. (c) - - - - - --- - - - - - - totally procludo . Local agency ordinances, regulations, or policies may not preclude or effectively preclude second units within —64-egIe—family—er--mW-44.Lamlly all residentially zoned areas unless the local agency finds, based on substantial evidence, that the ordinance may limit housing opportunities of the region and .furthor contains findixngp finding that specific adverse impacts on upon the public health, safety, and welfare that would result from allowing second units within single-family and multifamily zoned areas justify adopting the ordinance. (1) Local governments shall apply appropriate standards as defined in Section 65913.1, and those standards shall be written, objective, and adopted by the local government. (2) Local agencies may not require any of the following: (A) An owner's dependent or caregiver to occupy the primary dwelling or second unit. A local agency may require an applicant for a permit issued pursuant to this subdivision to be an owner -occupant of either the primary or second unit. A local agency may not impose a deed restriction requirement or other limitation that (i). restricts the sale of the property to owner -occupants, or (ii) restricts the occupancy of the primary or second unit by tenure or any characteristic enumerated in Section 65008, it the applicant determines that her or she will not occupy the primary or second unit. (B) The occupancy of either unit to be restricted by familial status, age, or any other characteristic enumerated in Section 65008. (3) Nothing in this section shall prohibit a city, county, or city and county from regulating or prohibiting transient use of second units in which rent is charged and collected on a daily basis. (d) A local agency may not establish minimum unit size requirements for both attached and detached second units _ Ne minimum cr Page 10 of 12 http://info.sen.ca.gov/pub/bill/asm/ab2701-2750/ab 2702 bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - *ENDED below 550 livable square feet unless requested by the owner . (e) A local agency may not establish minimum lot size requirements for detached second units above twice the square footage of the primary unit, unless requested by the owner. (f) Parking requirements for second units shall not exceed one parking space per unit or per bedroom. Covered parking may not be required. Local agencies may impose reasonable standards to limit on -street parking. Off-street parking shall be permitted in setback areas in locations determined by the local agency or through tandem parking, unless specific findings are made that parking in setback areas or tandem parking is not feasible based upon specific site or regional topographical or fire and life safety conditions, or that it is not permitted anywhere else in the jurisdiction. (g) Fees charged for the construction of second units shall be determined in accordance with Chapter 5 (commencing with Section 66000) . (g) Thic (h) Except as provided in subdivision (b), this section does not limit the authority of local agencies to adopt less restrictive requirements for the creation of second units. (i) Local agencies shall submit a copy of the ordinance or ordinances adopted pursuant to subdivision (a) .(c) to the Department of Housing and Community Development within 60 days after adoption. (j) As used in this section, the following terms an apply . (1) " —(2) "Local agency" means a city, county, or city and county, whether general law or chartered. (2) "Second unit" means an attached or a detached residential dwelling unit which provides complete independent living facilities for one or more persons. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family dwelling is situated. A second unit also includes any of the following: , defined in Section (A) An efficiency unit, as Health and Safety Code. (B) A manufactured home, as defined in Section 18007 of the Health and Safety Code. (k) Nothing in this section shall be construed to supersede or in any way alter or lessen the effect or application of the California Coastal Act (Division 20 (commencing with Section 30000). of the Public Resources Code), except that the local government shall not be required to hold public hearings for coastal development permit applications for second units. 17958.1 of the Page 11 of 12 http://info.sen.ca.gov/pub/bill/asm/ab_2701-2750/ab_2702 bill 20040525 amended asm.... 7/15/2004 AB 2702 Assembly Bill - *ENDED • (1) A local agency may charge a reasonable fee to an applicant for a permit pursuant to this section to reimburse the agency for costs that it incurs as a result of the enactment in 2004 of amendments to this section, including the costs of adopting or amending any ordinance that provides for the creation of second units. SEC. 3. Section 65917.1 is added to the Government. Code, to read: 65917.1. When a school district agrees to allow multifamily or a single-family residential use on the school district's property and agrees to adequate security features such as separate entrances that segregate the two uses, the residential density permitted on the parcel is the highest multifamily residential density permitted on any parcel within 300 feet plus any density bonus mandated by Section 65915. If there is no multifamily residential use permitted within 300 feet, the permitted residential density on the parcel being developed for primary or secondary education and residential uses is the highest multifamily residential density allowable in the community plan area. SEC. 5. SEC. 4. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. Page 12 of 12 http://info.sen.ca.gov/pub/bill/asm/ab 2701-2750/ab 2702 bill 200'+0525 amended asm....• 7/15/2004 • July 22, 2004 Honorable Mayor and Members of the Hermosa Beach City Council • 2, ( a V,12/0 y Regular meeting of July 27, 2004 DOWNTOWN RESIDENTS MEETING WEDNESDAY, AUGUST 4, 2004 Recommendation: Receive and file. Background: A meeting with staff and downtown businesses was held prior to the beginning of the summer and, during that meeting which was attended by several residents, it was suggested that a second meeting be held that was noticed on a wider basis to provide an opportunity for more residents to attend and provide their observations and suggestions. This second meeting has been tentatively set for Wednesday August 4, 2004 beginning at 7:00pm in the Council Chambers. As was done at the first meeting, representatives of City Departments will be attending to hear the ideas and answer questions. A notice will be posted on the City's web site and a press release distributed. The purpose of the meeting is to hear any concerns, ideas, and solutions and develop a report to present to the City Council in the future. Respectfully submitted, Stephen R. Burrell City Manager 7b • ajoy-e-t;e-/-16C4.6-4, 7/? -7/o (/' July 19, 2004 City Council Meeting July 27, 2004 Mayor and Members of the City Council VACANCY - BOARDS AND COMMISSIONS - APPOINTMENT TO BOARD OF APPEALS (HOUSING ADVISORY AND APPEALS BOARD) Recommendation: It is recommended that the City Council appoint from among the applicants interviewed earlier this evening to fill a vacancy on the Board of Appeals. Background: As reported at the meeting of July 13, the application -filing deadline was 6 p.m. July 7, and two applications were received. At its meeting of July 13, the Council scheduled a meeting for 6:30 p.m. prior to the July 27 regular meeting for the purpose of interviewing the two applicants — both were notified by telephone and mail of the date, time and place of the scheduled interviews. Applicants: Bruce Cook James Walker, Jr. The function of the Board of Appeals is to provide for reasonable interpretations of the Building Code. Members must be qualified by training and experience to pass upon matters pertaining to building construction and may not be City employees. Noted: Stephen Elaine Doerfling, City Clerk 8a • • BOARD OF APPEALS APPLICANTS • • CITY OF HERMOSA BEACH BOARD/COMMISSION APPLICATION NAME OF COMMISSIONHermosa Beach Board of Appeals Name BruceSook Address: 1136 C •ress Ave. #3 Hermosa Beach Occupation/Profession: Structural Engineer Name of Employer Self APR 2 6 2 004 C1T y pP Hf ; $EACH Home Phone: 310-372-3985 Bus. Phone: 310-374-6753 Address of Employer 1136 C • ress Ave. #3 Hermosa Beach REFERENCES: Local: Gary and Cheryl Niese (friendj, Redondo Beach (310) 540-8742 Professional: Roger North (architect), Torrance, CA (310) 618-8961 Other: Mike Stallings (educator/designer), El Camino College (310) 660-3626 or (310) 66 ' -3600 COMMUNITY PARTICIPATION AND SERVICE (past and present): See attached resume Why do you wish to become a Commission member? Opportunity to provide community service to the city where I reside. What do you feel are the duties and responsibilities of a Commission member? To provide fair, balanced and professional recommendations to the City based on my experience and education. Page 1 of 2 • • Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member? Yes X No (If yes, please explain) Please give a resume of your education, employment, memberships, past activities and other experience that you feel would qualify you as a Board/Commission member, See attached resume This Board/Commission meets on at p.m. Do you foresee any scheduling problems that might make you miss meetings? Yes X No Nothina foreseen at this time. How long have you lived in Hermosa Beach? Since 1987 Comments: Signed: Date: Page 2 of 2 (4/23/01) 1 Bruce A. Cook 1136 Cypress Ave. #3 Hermosa Beach, CA 90254 310-372-3985 SUMMARY SKILLS EXPERIENCE VOLUNTEER EDUCATION LICENSES ORGANIZATIONS • • Twenty six years experience in structural engineering. Twenty years experience as an independent engineering consultant in the South Bay. Five years experience as Project Manager in various Southern California structural engineering firms. Technical Develop structural designs for architectural projects throughout California. Projects include office buildings, shopping centers, industrial parks, hospitals, and residential construction using wood, steel, masonry and concrete. Provide engineering consultation to architects and builders during all phases of construction. Educational Structural engineering educator since 2000 FAA Certified Flight Instructor since 1992 Certified SCUBA instructor since 1975 Bruce A. Cook, Structural Engineer, Hermosa Beach, California 1985 to present - Consulting engineer. Provide structural engineering and engineering consultation to architects and builders. El Camino Community College 2000 to present — Educator. Instruct Structures Analysis class for Department of Industry and Technology Myers, Nelson and Associates, Los Angeles, California 1980 to 1985 - Project manager and engineering staff supervisor. Computer department supervisor. Vincent Kevin Kelly and Associates, Santa Monica, California 1978 to 1980 - Project manager Professional Los Angeles County Urban Search and Rescue Active technical specialist with California Task Force CATF-2 Environmental Catalina Conservancy Divers/Wrigley Institute for Environmental Studies, Catalina Island Active research diver Long Beach Aquarium of the Pacific, Long Beach, California Active aquarium diver, dive team leader and research diver Community Services Little Company of Mary Hospital, Torrance, California 1996 to 1999 - In -Service volunteer, Surgical Day Care department Pepperdine University, Malibu, California Masters in Business Administration California Polytechnic State University, San Luis Obispo, California Bachelors of Science, Architectural Engineering Structural Engineer California and Arizona Civil Engineer California and Oregon SEAOC - Structural Engineers Association of California ICC — International Code Council (formerly ICBG) • • CITY OF HERMOSA BEACH BOARD/COMMISSION APPLICATION NAME OF COMMISSION �Lf iei)/N , , ,,,t--1.1iTcl Tcrti, 1, \ .4..„ i ,E,..,11„.11 ,i f21) ,, MAY 2 4. 2004 ... CLERK ' L CiTY Q . TY OF HEIZIAOS BEACH I ' z?j P PA erfi/46A/T Wa s &ARV Name i f`x4 S W �� - J t Home Phone: Div) 37, --5113 Address: 63,3 6o0ao 12eACF Occupation/Profession: ((H ht2 CZW/T64 07.0 1( Name of Employer tv'r4 t- V£ o OA /QUCifrlBus. Phone: (3,o) 7/5 5/ -5 -S -- Address of Employer (3 .0 _ 13 a X 665 MIpVI 4—JTh-AJ Gfi hl c il Ca C76217 REFERENCES: Local: PA LIE 6,4 d 06 -6- Cw. l,'T7oit-f 'r 440541) Professional: C'014 /6 / yn / A-970 Other: (gd,'qFO L u'iv5F_ 1? `Tl2ll) V , / } ?v /1447577v COMMUNITY PARTICIPATION AND SERVICE (past and present): N /4 Why do you wish to become a Commission member? r Ok it I r` kCR6 M( ANY Obt7?1 e-pcvy c P/2oj3L tit, 0 - Z /„c 1k' f'/t1libnrs �fnrs 1)(so 144.yVS O' 15)(01;2101CIz /1 LHhi, f OL2s►214�r S What do you feel are the duties and responsibilities of a Commission member? UNW2s7YM0 CO Ar 7Y1VC1O4 CoM;s f3, Firso v� C o y rTS Page 1 of 2 • • Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member? Yes )c No (If yes, please explain) Please give a resume of your education, employment, memberships, past activities and other experience that you feel would qualify you as a Board/Commission member. 01 ,0 6RAry -T uQ►'34tif1 Map( ).11t- , v►2j-t/14 J1U/rbL' i c/6 V - I q(,q ' f4 P va/ 1 t)hi (i -k( l CC -1 LJ 0/3 , )4/)?►4 PI) ifi /U 0/2 mow a y - 0/-/F/) /$Wr y lido 621)4VA 57, PIT /T cill 612, At eID p/J / e , 3w N v(4,s7ny )97! 04)77 0 sT7re- / AY Ckf 1/-f Mr0(CSL .5E VICfis PO ki35, 71 - 192(, gJ;S /1s//04) h OCf fV7 U.G. C :� fly ('OL,0 . 97-x- Zadf C M1 r C l2►SCMwb) kR/O, - J1pJzr13o l3MCP (.466/IA / -m R-- A 91):::0411/1 01'1s 6i- . This Board/Commission meets on /1/4 at p.m. Do you foresee any scheduling problems that might make you miss meetings? Yes No How long have you lived in Hermosa Beach? / -1 7> -W U ZOO I Comments: Signed: Date: )(ii1m4 s Page 2 of 2 (4/23/01) • • CITY OF HERMOSA BEACH BOARD/COMMISSION APPLICATION NAME OF COMMISSION (3oAro oI APPIALs art CLERK CITY OF MkMOSABEACH Name -J1 E5 s. NI IC E12 112 Home Phone: (31o.) 374.6773 Address: 633 Goo LID Pi eR1 C r ijMMo. sew( Cl1. ?02.5-4 Occupation/Profession: 6 ILH) 12AL COi0c i< 5- 336 9'6S C/ 770 Name of Employer 1•4.Q f}WF ('0APROCI ))OA/ Bus. Phone: (3/o) 7/3--6/3S- Address / -6/SSSAddress of Employer PO. 13 oX 54S M/4g5/4-%%%34/ 65hell 04 9Dz1d7 REFERENCES: Local: P'Vr GA -d d if 7T Cann smCp aiy 551 2 of 4 p HO/1O54 f! l4 Professional: 61.14/( LY17.F 4)TII' /469 MO,iW4ry 'Mem oz,,- 4 13011 Other: LEA Rr1FO Lori rt hr4, 74J*'a (E N/,d I✓14r?i' . lwr.SrLr/Oor4 5/40,/, COMMUNITY PARTICIPATION AND SERVICE (past and present): - M'oN6 Why do you wish to become a Commission member? AMI 62- Y64/15 4501 P F41 iMjctiD 33 Yr4fis OF C`ait/SIV1/c7icyy / &M,A./L. r �NLJ i0 0!Z P f o r3L I/Ks K f0 l4 CFI) 6h-461 E 114/1 io u s 01714'5, 1J/li(D3 oft/ Cowl P4X'1!LW$,QM OF A2575 ANL Niot7/ VII PA /SSvJ • What do you feel are the duties and responsibilities of a Commission member? Coln PREI404 5/°/y Cb/ ' QOC?7rAy coo Es 54Pkty 1591 pL,acic tJ W5 l=jJ?1: pe r Pi49-1 e- WisPicice, Atid l2j'5oLVF+. (tMFL /c7S 131Z7WJ K'N V1�R1 vvs ��Ml� S Page 1 of 2 SUPPLEMENTAL INFORMATION �Q. • • Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member? Yes A No (If yes, please explain) Please give a resume of your education, employment, memberships, past activities and other experience that you feel would qualify you as a Board/Commission member. /956 -'96b 6/2A0OA)7TQ G2i3ll,4/A 11411 500o3L f v►2tMlI,4 „Cu/ /S 1%6 -1961 G /1. infili3O WV VM 5/r) rtU*0)3 /1-r CrJ4.1 64/ - Gi(13Y1dA zt,Chirc,/5 _ hdlklb✓1, O /l4 acceoc, --Ctlr.vl)sTX2 196f - )'U % 0214,011-76 SniPII N r ow() f Q S IT)► &le r u No,s M& ost 'Ai ,3/o,3 %1/cs / Digeoratisr'r, ui72dsr,7vcTat2E )16`f. 0 •) 71 , (rxA1)m,,r mmiehL ,2vrcE5 Cve►s, (linos 410 et a/0cl<Ji Ki) FL IVOR M)CQoseOPY 1617( - 1476 (lr`5/;hpc1W /'C)1n)z u,CL1L. POT OKOot064. V ►2d & 0105/Meg opitt HkA4ki' 714,lc. vt e ti s 14176, -20*1 GryMat Cty#.Tatte7v1( (icy 7i /) Pauxero `zfihMow Cry, II I i►3v / 13J,YiCli ('177 rs )LnIa1wJ/( 7)9 ,) M Arc., This Board/Commission meets on ///4 at p.m. Do you foresee any scheduling problems that might make you miss meetings? Yes / No How long have you lived in Hermosa Beach? 1q75 %7IP(' tool Comments: t /Q/r4 O 1/kfi 713 MI AKr• Up 1115PrC'rtc4/ 1111 1 0Pvtf roe_ &Aif ft Del 1.1)A45' Cov iV era As Signed: Date: 26 -IVO' 1001 Page 2 of 2 (4/23/01) • CITY OF HERMOSA BEACH BOARD/COMMISSION APPLICATION NAME OF COMMISSION (30A RP or A pP1 AL$ Name .Am>i5 S. 1.0:t2 J Home Phone: (3/0 375 5 773 Address: G33 GOU c %) i eR1a ek , NPI2MO! sell,. en. gOZs 4 Occupation/Profession: 6 EIYe12fL 00)0 1)crk1( 13.336 9'65- 0 776) Name of Employer 14/ AWER 00,41 9i Oo nail/ Bus. Phone: O3/0) 7/3--66-&-- Address b-f'6-5Address of Employer PO. 130X 64s M4N/14-7-74/(, 65Ael.i On 9Di1 7 REFERENCES: Local: Dt3v11 6/444107 L+wYShivC 7crki 551 2144 p 11/1Noi11 t'% Professional: t Y4)( LY7ZF A`)Ti/' /469 N/1sh72Ay tl/?a'2Mo. 4 t3Cl/ Other: IM (lW) O iv), j r$hi 4 7411orMl E 1/4,21041/I/7F . 14;3TIAA2o4 COMMUNITY PARTICIPATION AND SERVICE (past and present): - 00/Yr - Why do you wish to become a Commission member? AM 62- Y640 b?r), }-k D tR/1icn0 33 Yr4i25 OF ('aNs7Wc714K 00Dfi PROr3i.kALS KH0141.1;"46h-461E /k 1/l4/liou5 00-145, 14410-5 0AI Cowl of A237'S 14Nt Mot7l ir2flp, , 551//,'S, What do you feel are the duties and responsibilities of a Commission member? Corn PRE Hnr1 510/y (10Am ic77oA/ £0D, �4 Fter? t 5W' puac►c woRus/ PRI pg07 1/ h"asus, p(49.te fart 1'`x-1/ A09A-A09 I?k'SoLVh. c w L 1CT5 PAi2l)AS SUPPLEMENTAL INFORMATION Page 1 of 2 % A • Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member? Yes x No (If yes, please explain) Please give a resume of your education, employment, memberships, past activities and other experience that you feel would qualify you as a Board/Commission member. /956 -191,6 60)401)7KP 02+91),4/A 144611 5011c01- t u126.i 1/4 /qb 6 -1968 4lM'.fTh O W1 1117r1 srr? zt a*oI5 /1-r Cl/IM ?keit/ b<13$/Y4 ..raiiAnrs M&Jboro IM 2-a,Cr>G7 — C>fr4ls) ')' 1016f- Mot 021119011-74' SwP/ NT` vxir vfl (s rry bp= rcu Nois M/F_los2 w 13100l.7 1cs , iNeclarm►sTier, DtVidsmucwtieL 064?. •)117I ,pir?xEi41x. 441,01Y. CPr nrK N?1-v1CAL 1-'5t1OccE3 evejs, (Mos -Pott t3/ocliifkl ' ) Ft-re:I-O W M)CQoseoPy (17f - 1017( R►$J/1i?C W /}.641-C )A -7)Z u,CL1L. &tieo 1,t; G. y v,2GFVYs vH 2& (05»K?!l bar HVklk# 71/,40vt eiisrs 1' X' -2001 C T# ri& n4HTelrfo g( Coo% Witt lk' PO&iJrc 5 Mel; Maw Cal j / j9V131,4C1/ 0177rs/Lnr ')/ 76004-A1 ATZ. This Board/Commission meets on 4114 at p.m. Do you foresee any scheduling problems that might make you miss meetings? Yes A No How long have you lived in Hermosa Beach? Iq %,5 '1i¢PV 2p Comments: tilpv4 D 713 MAKE b° 1i(5Pf(crla4/ 14141a)7&&'Q f 6ilN/z r1 9i 1.nh, /'vb CoheiRA Oro Rs Signed: Date: 26 .411Y 5001 Page 2 of 2 (4/23/01) July 14, 2004 Honorable Mayor and Members of the Hermosa Beach City Council 7407 Regular Meeting of July 27, 2004 DESIGNATION OF VOTING DELEGATE & ALTERNATE FOR THE LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE Background: As you know, the League of California Cities takes positions on legislation at the state level that impact cities. The position that the League of California Cities takes on various bills starts at the annual business meeting where resolutions are considered. These resolutions guide the legislative effort during the next year. In order for the City to participate in the vote, we must designate the voting delegate and an alternate. Recommendation: Designate a voting delegate and an alternate for the League of California Cities Annual Business Meeting on Sunday, September 19, 2004. Respectfully submitted, Stephen R. Burrell City Manager 1 8b a • Headquarters Soonern California Office 1400 K STREET 602 East Huntington Dr., Ste. C SACRAMENTO, CA 95814 Monrovia, CA 91016 PH:(916) 658-8200 PH: (626) 305-1315 FX: (916) 658-8240 FX: (626) 305-1345 June 30, 2004 • LEAGUE OF CITICALIFORESNIA WWW.CACITIES.ORG W.CACITIES.ORG To: The Honorable Mayor and City Council From: Ron Loveridge, League President, Mayor, Riverside Re: Designation of Voting Delegate for 2004 League Annual Conference The League's 2004 Annual Conference is scheduled for Friday, September 17 through Sunday, September 19 in Lona Beach. One very important aspect of the annual conference is the annual business meeting where the membership takes action on conference resolutions. Annual conference resolutions guide cities and the League in our efforts to improve the quality, responsiveness and vitality of local government in California. It is important that all cities be represented at the Annual Business Meeting on Sunday, September 19, at 10:15 a.m. at the Long Beach Convention Center. To expedite the conduct of business at this important policy-making meeting, each city council should designate a voting representative and an alternate who will be registered at the conference and present at the Annual Business Meeting. A voting card will be given to the city official that is designated and indicated on the enclosed "Voting Delegate Form." Please complete and return the enclosed form to the League's Sacramento office at the earliest possible time (not later than Friday, August 20, 2004), so that proper records may be established for the conference. The city's designated voting delegate may pick up the city's voting card at the Voting Card desk located in the League registration area. The Desk will be open on September 17, 18, and 19. Voting cards should be picked up before the Annual Business Meeting on September 19. The voting procedures to be followed at this conference are printed on the reverse side of this memo. Your help in returning the attached "Voting Delegate Form" as soon as possible is appreciated. If you have any questions, please call Lorraine Okabe at (916) 658-8236. i LEAGUE CITIES • Annual Conference Voting Procedures 1. Each member city has a right to cast one vote on matters pertaining to League policy. 2. To cast the city's vote, a city official must have in his or her possession the city's voting card and be registered with the Credentials Committee. 3. Prior to the Annual Conference, each city should designate a voting delegate and an alternate and return the Voting Delegate Form to the League Credentials Committee. 4. The voting delegate, or alternate, may pick up the city's voting card at the voting card desk in the conference registration area. 5. Free exchange of the voting card between the voting delegate and alternate is permitted. 6. If neither the voting delegate nor alternate is able to attend the Business Meeting, the voting delegate or alternate may pass the voting card to another official from the same city by appearing in person before a representative of the Credentials Committee to make the exchange. Prior to the Business Meeting, exchanges may be made at the "Voting Card" table in the League Registration Area. At the Business Meeting, exchanges may be made at the "Voting Card" table in the front of the meeting room. Exchanges may not be made while a roll call vote is in progress because the Credentials Committee will be conducting the roll call. 7. Qualification of an initiative resolution is judged in part by the validity of signatures. Only the signatures of city officials who are authorized to use the city's voting card, and who have left a sample of their signature on file for the Credentials Committee, will be approved. 8. In case of dispute, the Credentials Committee will determine the right of a city official to vote at the Business Meeting. July 20, 2004 Honorable Mayor and Members of The Hermosa Beach City Council .epartmentiof Community Resources. ;A►cti ty'+ eportfor June 20.04` Regular Meeting of July 27, 2004 The Department of Community Resources has been involved in the following activities for the month of June 2004: Recreation Programming: Registration for summer classes and recreation programs continued steadily throughout the month of June. The Department office handled an increased load of telephone inquiries and in-person transactions. Registration numbers far surpassed prior years. Summer Celebration This event served as the `kick-off' to summer registration by providing on-site sign-ups for classes. The Summer Celebration featured opportunities to register for summer classes and camps, meet instructors, camp counselors, and recreation staff, participate in. . dance workshops, class demonstrations, and a bbq hosted by the Friends of the Parks. The Hermosa Beach Fire Department was onsite with fire engine and the Police Department conducted childrens' fingerprint registration. The event was free to the public and hundreds of residents and their guests joined us at Valley Park to Celebrate Summer. Summer Blast Day Camp The first week of an eight-week Day Camp Program started this month. Day Campers, ages 6-11, participated in a variety of recreational activities geared toward the theme of "Summer by the Sea." Campers participated in a daylong excursion to the Leeway Sailing Center where they kayaked, canoed, and sailed. Program highlights included sports, drama, cooperative games, music, crafts, and outdoor activities. Sixty Campers participated in the program. Teen Extreme Day Camp The first week of an eight-week Day Camp Program for young teens started this month. Day Campers, ages 11-14 socially interacted with other teens during a variety of educational and recreational pursuits designed specifically for their age group. Campers participate in leadership training, and take on the role of Counselor Assistants at Summer Blast Camp on Fridays. Camp operates out of the old South School building in South Park. Twenty-five Campers participated in the program. Chevron Surf Camp • 4 The first week of the ever -popular surf camp started this month. Registration for all summer sessions was steady. Surfers, ages 10-17, learned basic surf techniques, etiquette and water safety. Partial program subsidy from Chevron enables the provision of expert staff instruction, quality equipment, and low registration fees. A new class component, Teen Surf Club, was added to accommodate more experienced young surfers. After Blast Camps `Mini -camps' offered working parents an alternative to traditional childcare. At day's end of Summer Blast and Teen Extreme, the Wave transported children to a basketball orientated After Blast Camp. Superstar Fitness Boot Camp Hermosa Beach's ultimate outdoor fitness program "Superstar Fitness Boot Camp" is specifically designed for both men and women of all fitness levels from beginners to intermediate and advanced. Instructors Alec Hunter, US Army Master fitness trainer and Britt George focus on total body development. Just 4 Kicks -Beach Soccer Camp This new camp teaches kids ages 5-13 Brazilian style beach soccer. This high-energy program coupled with enthusiastic coaches has proven to be a "kick". Instructor Aldo Ginossi, a licensed USSF referee and soccer player in the South Bay for 18 years oozes energy for the sport of soccer. Class includes: expert instruction, t -shirts, volleyballs, snacks, and a pizza party on Friday. ET Skateboard Camp/ Roxy Girls Skateboard Camp This new camp introduces beginners to skateboarding and offers a pressure free environment for learning. Classes are offered for boys and girls ages 6-10. Safety is a priority for instructor Vinnie Davis. He is CPR/First Aid and EMT Certified and provides instruction for beginner to intermediate skaters. Registration totaled 78 kids for the skateboard camps. AARP -Drivers Safety Program This drivers training course offered for the first time in Hermosa Beach provides information to improve driving behavior of older drivers. Insurance discounts are available for successful completion of the class. Registration totaled 20 for two classes! Red Cross Babysitters Training This new class offers kids age 11-13 the opportunity to be a Red Cross Certified Babysitter. Instruction includes advertising your business, flier creation, safety questions, simple cooking and meal preparation, childcare training, interviewing techniques, and a full color handbook. Registration totaled 20 for two classes! Civic Theater Events Fees Charged June 2-6 South Bay Coastliners held rehearsals for their 3 -day acapella concert. Approximately 1500 were in attendance for the duration of the run. June 13 Penny Hendricks held annual dance show, "Dance with Penny". The dance program presented jazz, gymnastics and hip-hop to a full house of 500. June 15-26 Southern California Youth Theater presented "Peter Pan" featuring youth ages 6-17. Rehearsals were held Tuesday through Thursday, with performances. Friday through Sunday. Attendance totaled over 3600 for all 7 shows. June 6,20 & 27 Church of Christ held religious services with 400 in attendance for each service. Fees Waived Oscar Rivera, Adult Basketball June 1,2,3,5,8,9,10, 11 & 12 City youth dance instructor, Jennifer Yamane, held rehearsals for dance recital in theater. Each class had approximately 20 children and their parents. June 9&12 City youth gymnastics instructor, Linda Deslandes, held a rehearsal and a recital in the theater. Approximately 200 were in attendance for the show on Thursday. June 29 June 20&27 Hermosa Arts Foundation Facility Usage: 9 hours Meeting Playwright Theater Community Center Gymnasium Fee Charged Total Hours Private Rental 9.00 Mike Gooding, Adult Basketball 9.00 Kennedy O'Regan, Adult Basketball 10.00 John Fielder, Adult Basketball 10.00 Oscar Rivera, Adult Basketball 10.00 Steve Kingdon, Adult Basketball 6.00 Emiliano Ortiz, Adult Basketball 8.00 Fred Zaguski, Adult Basketball 6.00 Mike Aaker, Adult Basketball 7.00 Ron Price, Adult Basketball 6.00 David Gordon, Adult Basketball 7.00 John Thuotte, Adult Basketball 1.50 Park Lee, Adult Basketball 4.00 Rick Wood, Adult Basketball 8.00 Paul White, Adult Basketball 9.00 Viet To, Adult Basketball 110.5 Total Hours Fees Charged Fee Waived 12.00 ARC 8.00 Easter Seals 20.00 Total Hours Fess Waived Community Center Tennis Courts Total Hours Private Rental 65.00 Jeff Abbey 133.50 Adam Burt 36.00 Mike Campagna 12.00 Rick Escalante 34.50 Dave Mahoney 24.00 Scott Smith 21.00 Joe Testa 326.00 Total Hours Fees Charged Public court use outside of reserved time is first come first serve Skate Track Hours Rentals 0.00 Private Rentals 192.00 Public Skate Hours Clark Complex Clark Building Rental 110.5 Private Rentals Athletic Field 190.00 Hermosa Beach Little League 36.00 City Adult Recreation League 3.00 General Rental Community Center Room Rentals Private Rentals Rental 623.50 Community Center Rooms Lease Agreements ARC Rooms 1, 2 & 15 (Not available for rent) Easter Seals Room 4 (Not available for rent) South Bay Youth Project Room 6A (Not available for rent) Valley Park Picnic Reservations Hours Rental 103.00 37 Resident Bookings South Park No Fee Hours Rental 8.00 Private Rental 24.00 Adult Flag Football League 6.00 Youth Volleyball League Special Events: Hermosa Artwalk The Hermosa Artwalk featured 40 artists displaying artwork for sale along the North Side of upper Pier Avenue between Manhattan Avenue and Bard Street. This first time event was well received by the public and the merchants. Most merchants remained open late for customers to continue shopping beyond their normal business hours. Many merchants held coordinating events such as wine tasting, demonstrations, and musical entertainment. The event will continue through the summer on July 29 and August 26 from 5pm-9pm. Surfin' Hermosa Surfin' Hermosa, a cooperative public art project between Hermosa Beach Education Foundation, Hermosa Arts Foundation, Chamber of Commerce, and the City of Hermosa Beach, held it's preview night at Gallery C. Over 250 people were in attendance to get a first hand peek at the twenty surfboards which will be on display throughout Hermosa from July 9 -September 3. Local merchants, including the Community Center, have displayed surfboards at highly visible locations. EVP Tour Beach Volleyball Tournament Corona sponsored the fourth annual 'West Coast' EVP Tour Pro Am Volleyball Tournament, attracting over 300 players from surrounding areas, as well as Chicago, Miami, and New York. During the one -day event, a spectator crowd of 250 watched professional team competition, open amateur tournaments, and special event contests on the North side of the Pier. Excursions: Mission Inn Tour This tour included round trip transportation from the Community Center, tour of the historic Mission Inn located in Riverside and lunch at the hotel. Eighteen registrants and an excursion host attended Disney Concert Hall Tour This tour included round trip transportation from the Community Center, tour of the new Cathedral of our Lady of the Angels, guided audio tour of the Disney Concert Hall home of • • the LA Philharmonic, driving tour of Little Tokyo, Lunch at Philippe's, shopping on Olvera Street, and tour of Union Station. Eighteen registrants and an excursion host attended Sports Leagues/Tournaments: Softball Summer Slo Pitch Softball began this month. The City runs 3 leagues: Men's C Division - Sunday. Nights, Co -Ed Division -Monday Nights, and Men's D Division -Wednesday Nights. The league filled to capacity the first day of resident registration with 5 teams in each division. Each team plays 10 league games plus a playoff tournament. League Director - Aaron Benzenbower Co -Ed Flag Football The Co -Ed Flag Football League came to a close on June 17 with an impressive 26 teams registered for the spring league. League Director -Chris Jahng held this monthly tournament at 10th Street in Hermosa Beach. 50 people out for a day of 4 -on -4 co-ed flag football fun. An additional one -day tournament was held on a Saturday. Co -Ed Beach Volleyball League The League began this month at the volleyball courts North of the Pier at 14th Street. The league offers two divisions competitive or recreational with a total of 16 teams registered. League Directors- Chris Jahng and Bill Sigler Men's Flag Football League The 5-on5 men's league began this month in Hermosa Beach with 5 teams registered. League Director -Dennis Hrboka Film Permits: Project Student Film Still Photo Still Photo Upcoming Events: July 30- Aug 1 August 1 August 5-6 August 7 August 8 August 14-15 August 15 August 15 August 20 August 21 Title/Description Documentary Model on Pier Men's Fitness Cover Dates June 15 June 11 June 10 Film Days ' 1 1 1 International Surf Festival Sunset Concert Shakespeare by the Sea So Cal Beach Volleyball Tournament Sunset Concert Aloha days Pageant of the Masters Excursion Sunset Concert Hermosa Shorts Festival Hollywood Bowl Excursion • • DEPARTMENT REVENUE FOR MAY 2004 Current Month This Month Last Fiscal Year $98,160 $81,143 Fiscal Year To Date Last Fiscal Year To Date $721,266 $619,139 Revenue FY 2003-04 for 100% of the Fiscal Year is: $721,266 or 136% of the projected figure of $529,350 Donations (in addition to Department Revenue): Expenditures FY 2003-04 for 92% of the Fiscal Year is: $913,804 or 83% of the projected figure of $1,094,585.00 Respectfully submitted, u„ Lisa Lynn Recreation Supervisor Concur: $37,950 Stephen City Manager Catching a Wave of Art- 1 res A public arts project that displays artists' works on 20 surfboards starts today in Hermosa Beach. The boards, which Will be on exhibit throughout the city until Sept. 9, will be auctioned off, with proceeds going to two local arts and education foundations. B3 CARLOS CHAVEZ Los Angeles Tinees Dogs, Dogs, Dogs! Skyler Middler plays a game of fetch with her golden retriever Mojo this past weekend at the Hermosa Beach. Dog Parade and Trick Show that tool place at Clark Stadium Sunday morning. (photo by Jared Dastru; Friends of the Parks looks back at -.last year by Whitney Youngs Established about a year ago in the, hopes of improving ermosa Beach's many parks, the nonprofit group Friends of te Park continues on its path of parks and recreation pro - ram improvement while striving to expand its membership id raise more revenue. Last May, the Parks and Recreation Commission voted to lrm the organization as a way to maintain the aesthetics, tfety and cleanliness of the 21 parks in town. The idea came a time when the city's current financial state lacks a budget lr park enhancements. The commission attempted to anticipate any loss in udget funding for the upkeep or possible improvement proj- ts• a future by forming the group that comprises resi- enteral commissioners and a city liaison — Community .esources Supervisor Lisa Lynn. "The organization's main purpose is to field resident as- lssment of community parks and recreation programs, and ugment these services," said Lynn. "It works in coordina- on with the recreation commissioners and city staff to iden- fy, prioritize and fund -raise for park program enhance- 1ents. The group is trying to initiate dialogue with residents about ,. ie importance of our parks — keeping them clean, keeping them safe _ and it wants to help to fix things. It just doesn't want to identify the :- roblem and give it to the city staff to fix. It wants to be a part of the 1alution and that is the whole reason why it was formed" Commissioner Howard Fishman leamed of establishing the group Fort Lots of Fun is the Friends of the Parks' most important priority at present. It hopes to replace all of the playground equipment in the near future with privately raised funds. (photo by Chris Miller) from other cities that have such organizations already in place. He then brought the idea to the commission last year. This year, city officials had to absorb a loss in budget revenues based on a decline in sales tax and a loss of about $361,000 in the form of property taxes that the state plans on taking to balance its (Please turn to next page) Surfboards as Works of Art SurfsHermosa 2004 Summer Exhibition: these one -of -a -kind works of art full size surfboards will be on public display around the City of Hermosa Beach for two months during the summer. The surf- boards will then be auctioned and sold to the high- est bidder. All proceeds will benefit the Hermosa Beach Education Foundation and the Hermosa Arts Foundation- A special reception will be held from 7 p.m. to 9 p.m. "at Gallery C, 1225 Hermosa Ave., Hermosa Beach. )310) 318-1403. Hermosa Beach Art Walk ' Fine artists line the sidewalk of Upper Pier Avenue starting at 5 p.m. There will also be live music and many restaurant "specials.' Experience the fine art community of the South Bay with juried selection of artists, three jazz stations with live musical perfor- mances, food and wine receptions, hosted art exhibitsand art for kids along the stroll:'Free. (310) 374-0080 www.hbartwalk.com. ■ `Peter Pan' The Southern California Youth Theater will present "Peter Pan" at the Hermosa Beach Playhouse. Show times are 2 and 7 p.m. June 25 and 26. Tickets are $10 in advance and $12 at the door. The Playhouse is at 710 Pier Ave., Hermosa Beach. Call 528-9024 for more information. Nonprofit group (Continued from Page 12) own budget. As a result, the city will fund less capital improvement plans, especially in the form of park projects, when its biggest priorities are street repairs and sewer re- placements. In response, the commission last May formed a subcommittee of Commis- sioners Christine Hollander and Robert Bell to discuss the feasibility of the group. Aliaw after a year, we are looking for addi- tioillrupport any way we can get it," said Hollander. "We are still a new organization, and our goals are to make sure the city's parks are maintained and safe for children. I think for a new organization we have done very well in raising funds. Being a small town, we have an awful lot of parks so we have a lot of land to try and keep in good condition, and that's our focus. I think we have such great parks here and I also think we have some. parks that are in dire need of repair." Hollander, who is a member of the Her- mosa Arts Foundation, said the group would be similar to the foundation's in that it would have its own bylaws and board of directors. "We have a lot of thoughts and ideas, but we d more people who are willing to come to meetings and volunteer," said the group's incoming president, Angie Heyning. "We are also turning to grants and our past president, Agnes Slater, is working with a grant finder to write grant proposals. We think this is where a big source of our money will come. Although the donations are coming in from residents, they are coming in the form of $100 or less, and really to, get this going we need corporate sponsors or grants that are willing to give us like $1,000 or $5,000." According to Heyning, about 100 people have contributed to the group's coffers and serve as nonactive members. Between •five and 10 people of this segment act as active members and board members who attend the group's .monthly meetings on the second Wednesday of each month at 6 p.m. inside the Community Center. "What we are doing right now is identify- ing'park needs and we are fund-raising in order to pay for park enhancements," said Heyning. "Right now we've identified Fort Lots of Fun Park as our main project but in addition to that there are other things going on such as the park at Fourth Street and Prospect Avenue that we want to improve. We also want to buy signs for South Park. So, while Forts Lots of Fun is a big project, we also wanted to take on some smaller proj- ects as a way to show the community that we are involved in other things that improve our parks." The group's board of directors — includ- ing president Heyning, secretary Corrine Ybarra, treasurer Marlowe Kemper and by- laws chair Ken Bergeron — brainstorm ideas with Hollander, Bell and Fishman, along with Lynn, at their monthly meetings. Forts Lots of Fun (less than an acre) is lo- cated at Sixth Street and Prospect Avenue, and has become dilapidated over the years. Friends of the Park wishes to replace the playground equipment there that is estimated to cost between $20,000 and $30,000. The estimates vary since it depends on what the group would like to replace and with what. "The group is in the process of drafting up a wish list and inviting different play- ground companies out to the site that are then giving it estimates on particular pieces of equipment," said Lynn. "The group has also reached out to the Garden Club and the Lawn Bowling Club so it is really working to foster connections between residents and local community groups." Aside from Fort Lots of Fun, the organi- zation would like to resurface the basketball The Beach Reporter • June 24, 2004. 13 courts at Edith Rodaway . Friendship Park (less than an acre) at Prospect Avenue and Hollowell Avenue. "We would also like to work on South Park's field, and although we haven't ad- dressed what we want to do there, we do re-. alize it's a heavily used area," added Lynn. "Valley Park is our showcase park and it's how we would like all of our parks to look." The city opened Valley Park last July to the public following a nearly yearlong reno- vation project. The estimated $1.7 million upgrades to the park promote a rustic theme inspired by the park's natural ambiance. The park now has a regulation -size soccer field and a full-size basketball court. The fin- ished product also has separate playground areas for toddlers and older children, and an amphitheater. The ADA -compliant park also has concrete walkways and picnic areas along with new firepits and restrooms. The city funded the project by way of public revenue sources such as the Commu- nity Block Development Program, Los An- geles County and the city's various budget accounts. Between $500,000 and $550,000 came from the city's General Fund to pay for the project. Friends of the Park's revenue streams are derived from private contributions and from its biannual fund-raisers. One was slated in. October called Pumpkins in the Park at Fort Lots of Fun and the other, a barbecue, took place in conjunction with the city's Summer Celebration at Valley Park in early June. The Summer Celebration event is a way to bring residents together for a summer class regis- tration session and summer program demon- strations that coincided this year with the commission's annual citywide picnic. • "We actually raised slightly more than $600 at this event," added Heyning. "We are just plugging away; we have just a bit more than $6,000 since forming the organization last year. Forts Lots of Fun needs a complete overhaul. A rusty, chain-link fence currently surrounds it and the equipment itself needs to be replaced. So, it's old and in disrepair, and the thought is if we improve our parks, we are improving the neighborhoods, we im- prove our city and all around the area, prop- erty values are increasing." Aside from fund-raising events, the group is also looking to expand its volunteer and membership base. "I live really close to South Park and 1 have a little dog, so I'm at that park a few times 'a day," said Heyning. "I saw an adver- tisement for the group and I wanted to help out the city's parks. I, for the most part, think the parks in Hermosa are beautiful. However, we have a lot of parks and some are really tiny and they look so sad. All they need is a little TLC:' According to Lynn, the city currently has 21 parks in a town that is 1.3 square miles. Of those 21 parks, about 12 are categorized as parkettes. The group hopes to continue with its maintenance and improvement of the small parkette at Fourth Street and Prospect Avenue. Among the parks, the top three most used are the beach (50 acres), Valley Park at Valley Drive and Gould Avenue (5.33 acres) and South Park on Valley Drive near Second Street. "We also have two parks that are fenced — Fort Lots of Fun and Sea View Park (less than an acre at 19th Street and Prospect Avenue) and they are actually heavily uti- lized, too," said Lynn. "Parents like them be- cause they can shut the gate and let their kids run around, so they are really popular among people who have toddlers." Friends of the Park meets on the second Wednesday of each month at 6 p.m. in Room 4 in the Community Center. For more infor- mation, visit www.hbfop.org. CITY OF HERMOSA BEACH COMMUNITY DEVELOPMENT DEPARTMENT BUILDING DIVISION JUNE, 2004 MONTHLY REVENUE REPORT NUMBER OF PERMITS TYPE OF ACTIVITY CURRENT MONTH THIS MONTHLAST LAST FY FY TO DATE° FY TO DATE BUILDING 61 50 676 691 PLUMBING/MECHANICAL 37 37 439 434 ELECTRIC 23 21 357 300 PLAN CHECK 30 23 278 259 SEWER USE 4 1 12 12 RES. BLDG. REPORTS 38 51 355 393 PARKS & RECREATION 0 0 2 1 IN LIEU PARKS &REC 7 1 19 18 BOARD OF APPEALS 0 0 1 0 SIGN REVIEW 3 4 26 26 FIRE FLOW FEES 11 7 82 80 LEGAL DETERMINATION 0 0 1 0 ZONING APPEALS 0 0 0 0 TEMPORARY SIGN 1 23 15 35 TOTALS 215 218 FEES COLLECTED 2,263 TYPE OF FEE CURRENT MONTH THIS MONTH LAST FY FY TO DATE LAST FY TO DATE BUILDING $37,541.19 $20,980.83 $375,984.33 $300,432.49 PLUMBING/MECHANICAL 4,607 2,727 40,602.40 35,985.40 ELECTRIC 5,886 2,299 62,159 46,063.60 PLAN CHECK 29,673.41 18,769.60 277,929.36 199,119.83 SEWER USE 2,488 3,470.65 14,211.63 13,285.87 RES. BLDG. REPORTS 1,900 2,550 17,750 19,594.80 PARKS & RECREATION 0 0 7,000 3,500 IN LIEU PARKS & REC 25,886 3,396 67,158 86,044 BOARD OF APPEALS 0 0 191 0 SIGN REVIEW 309 412 2,678 2,666 FIRE FLOW FEES 10,767.50 5,690.50 89,201.50 86,800 LEGAL DETERMINATION 0 0' 1,274 0 ZONING APPEALS 0 0 0 U TEMPORARY SIGN 38 874 570 1,327 TOTALS $119,096.10 $61,169.58 $956,709.22 $794,818. 1 CITY OF HERMOSA BEACH COMMUNITY DEVELOPMENT DEPARTMENT BUILDING DIVISION BUILDING PERMITS ISSUED REPORT MONTH OF JUNE, 2004 TYPE OF STRUCTURE PERMITS DWELLING UNITS VALUATION 1 101 NEW SINGLE FAMILY HOUSES DETACHED 2 2 $969,564.68 2 102 NEW SINGLE FAMILY HOUSES ATTACHED 3 103 NEW TWO FAMILY BUILDINGS 4 104 NEW 3 OR 4 FAMILY BUILDINGS 5 105 NEW 5 OR MORE FAMILY BUILDINGS 6 213 NEW HOTELS/MOTELS 7 214 NEW OTHER NON HOUSEKEEPING 8 318 NEW AMUSEMENT & RECREATION 9 319 NEW CHURCHS/OTHER 10 320 NEW INDUSTRIAL BUILDINGS 11 321 NEW PARKING GARAGES. 12 322 NEW SERVICE STATIONS/REPAIR GARAGES 13 323 NEW HOSPITALS/OTHER INSTITUTIONAL 14 324 NEW OFFICES/BANKS 15 325 NEW PUBLIC WORKS/UTILITY BUILDINGS 16 326 NEW SCHOOLS/OTHER EDUCATIONAL 17 327 NEW STORES/OTHER MERCH BLDGS. 18 328 NEW OTHER NON RESIDENTIAL BUILDINGS 19 329 NEW STRUCTURES OTHER THAN BUILDING 6 20 434 ADD/ALTER DWELLING/POOLS 35 138,000 21 437 ADD/ALTER NON RESIDENTIAL 5 437,714 22 438 RESIDENTIAL GARAGES/CARPORTS 36,880 23 645 DEMOLITION -SINGLE FAMILY HOUSES 4 4 2,000 24 646 DEMO 2 -FAMILY BUILDINGS 25 647 DEMO 3-4 FAMILY BUILDINGS 26 648 DEMO 5+ FAMILY BUILDINGS 27 649 DEMO ALL OTHER BUILDINGS TOTAL UNITS ADDED FY 2003-04 TO DATE: 58 TOTAL UNITS DEMOLISHED/LOST FY TO DATE: 63 (See Attached List) TOTAL NET UNITS FY TO DATE: -5 FY 2001-02 Total New Dwelling Units: 52 Total Demolished Units: 48 Net Units: 4 2 FY 2002-03 Total New Dwelling Units: 59 Total Demolished Units: 59 Net Units: 0 Dwelling Units Demolished/Lost as of June, 2004 ADDRESS TYPE PERMIT DATE PERMIT No. No. OF UNIT 3301 Hermosa Avenue SFR 7/1/03 803-354 1 56 The Strand SFR 7/1/03 B03-356 1 1435 Bonnie Brae Street SFR 7/8/03 803-369 1 35 6th Court SFR 7/10/03 B03-376 1 1126 8th Street SFR 8/14/03 B03-450 1 2330 The Strand SFR 9/9/03 B03-486 1 242 33rd Street SFR 10/6/03 B03-543 1 959 15th Place SFR 10/14/03 B03-561 1 3306 Highland Avenue SFR 10/22/03 B03-579 1 603 3rd Street 2 Units on A Lot 12/1/03 B03-654 2 1009 8th Place SFR 12/8/03 B03-663 1 1722 The Strand 4 -Unit Buildin• 12/15/03 B03-675 4 2461 Myrtle Avenue SFR 12/16/03 B03-682 1 711 Longfellow Avenue Duplex 12/17/03 B03-687 2 2103 Monterey Blvd. SFR 12/22/03 B03-691 1 2104 Circle Drive SFR 12/22/03 803-692 1 37 5th Court SFR 12/24/03 B03-665 1 1234 6th Street SFR 1/7/04 B04-6 1 1744 Hermosa Avenue SFR 1/20/04 B04-21 1 562 24th Place SFR 1/27/04 B04-36 1 222-224 30th Street 2 Units on A Lot 1/28/04 B04-39 2 100 The Strand SFR 2/25/04 B04-75 1 259 31st Street Convert 2 Units to SFR 2/26/04 B04-14 1 632 25th Street - SFR 2/26/04 B04-79 1 357 30th Street 'SFR 3/4/04 B04-98 1 2314 The Strand SFR 3/9/04 B04-102 1 517 Loma Drive SFR 3/15/04 B04-110 1 2006 PCH SFR 3/22/04 B04-125 1 2014 PCH SFR 3/22/04 B04-126 1 2024 PCH SFR 3/22/04 B04-127 1 1016-1018 17th Street Duplex 3/24/04 B04-136 2 2420 Hermosa Avenue SFR 3/29/04 B04-141 1 714 10th Street SFR 3/30/04 B04-144 1 726 10th Street SFR 3/31/04 B04-146 1 3130 Hermosa Avenue 2 Units on A Lot 3/31/04 B04-148 2 1630 Monterey Blvd. SFR 4/1/04 B04-149 1 406 Ocean View Drive SFR 4/5/04 B04-155 1 1106 Palm Drive SFR 4/8/04 804-169 1 1102 2nd Street 1 of 2 Units on A Lot 4/13/04 B04-178 1 24 8th Street Duplex 4/20/04 B04-186 2 120 33rd Street SFR 4/21/04 B04-194 1 1721 Monterey Blvd. Duplex 4/22/04 804-198 2 531 Loma Drive SFR 4/22/04 B04-199 1 1101 1st Place 1 of 2 Units on A Lot 4/26/04 B04-201 1 415 30th Street SFR 4/27/04 B04-203 1 1702 Bayview Drive SFR 5/3/04 B04-210 1 204 29th Street SFR 5/13/04 B04-229 1 960 8th Place SFR 5/26/04 B04-257 1 62 8th Street SFR 5/26/04 B04-258 1 1252 15th Street SFR 6/1/04 B04-262 1 810 Manhattan Avenue 1 of 2 Units on A Lot 6/10/04 B04-265 1 809 Bayview Drive 1 of 2 Units on A Lot 6/10/04 B04-266 1 2340 The Strand SFR 6/15/04 B04-283 1 Total Units Demolished 63 • • July 8, 2004 HONORABLE MAYOR and MEMBERS of Regular Meeting of July 27, 2004 HERMOSA BEACH CITY COUNCIL ACTIVITY REPORT COMMUNITY DEVELOPMENT DEPARTMENT - PLANNING DIVISION JUNE, 2004 STAFF REPORT PREPARED . . . _, .. SUBJECT • - ;THIS MONTH '• : THIS Mortni LASTTFY =. FY To : •'DATE. "' LasT FY , `To DATE APPEAL / RECONSIDERATION 0 0 7 8 CONDITIONAL USE PERMIT (C.U.P.) - CONDOMINIUMS 2 1 20 15 CONDITIONAL USE PERMIT (C.U.P.) - COMMERCIAL 1 0 4 6 C.U.P./PRECISE DEVELOPMENT PLAN AMENDMENT 0 0 6 12 CONDITIONAL USE PERMIT MODIFICATION/REVOCATION 0 0 0 1 CONDITIONAL USE PERMIT/MAP EXTENSION 1 0 2 5 ENVIRONMENTAL IMPACT REPORT 0 0 0 0 FINAL MAP 0 1 13 15 GENERAL PLAN AMENDMENT 0 0 5 2 HEIGHT LIMIT EXCEPTION 0 1 0 2 LOT LINE ADJUSTMENT 0 0 0 1 NONCONFORMING REMODEL 3 0 9 12 PRECISE DEVELOPMENT PLAN 0 1 1 7 PARKING PLAN 0 0 3 2 SPECIAL STUDY 0 0 0 8 SUBDIVISION 0 0 0 1 TEXT AMENDMENT 0 0 20. 12 TRANSIT 0 0 1 0 VARIANCE 0 0 4 6 ZONE CHANGE 0 0 3 0 MISCELLANEOUS 2 5 60 62 TOTAL REPORTS PREPARED 9 9 158 177 NOTE: A staff report may be written for one or more of the items listed above, but it will be listed and counted only once. WAVE DIAL -A -RIDE RIDERSHIP PASSENGERS" THIS MONTH ' THIS MONTH .LASTFY FY TO DATE' ' LAST FY •. To DATE HERMOSA BEACH 759 839 8,773 8,552 REDONDO BEACH 4,580 4,863 53,408 56,645 SATELLITE 282 305 3,968 4,311 *Ridership number is counted using different method. 4 CONCUR: Sol Blumenfel• , Dir: ctor Community D:velopment Department NOTED: Stephen City Man ger f:\b95\cd\activity Respectfully submitted, \fu-Ying Ting Administrative Assistant Honorable Mayor and Members of the Hermosa Beach City Council • FINANCE DEPARTMENT ACTIVITY REPORT, JUNE 2004 July 19, 2004 City Council Meeting of July 27, 2004 STATISTICAL SECTION Finance Administration CURRENT MONTH THIS MONTH LAST FY FISCAL YEAR TO DATE LAST FISCAL YR TO DATE AVERAGE T.O.T. 4th Quarter OCCUPANCY RATE August Activity Report INVOICES/ACCOUNTS RECEIVABLE CASH REGISTER TRANSACTIONS CHECKS ISSUED PURCHASE ORDERS DISCOUNTS TAKEN LANDSCAPE/ST. LIGHT REBATES (2002 Tax Yr.) UUT EXEMPTIONS TO DATE 112 71 3,213 2,949 928 778 36,692 34,370 256 285 3,706 3,842 130 173 1,855 2,057 $283.17 $312.03 $2,030.06 $2,547.16 7 38 87 113 (3) 1,407 (8) 1,364 PAYROLL Full Time Employees 131 138 Part Time Employees 60 45 C/695/finance 1 /finactivityTOT.doc • Finance Cashier • CURRENT MONTH THIS MONTH LAST FY FISCAL YEAR TO DATE LAST FISCAL YR TO DATE CITATION PAYMENTS DMV PAYMENTS DELINQUENT NOTICES SENT: California 4,007 236 3,685 319 38,245 3,933 37,606 4,050 1,846 1,298 19,838 20,614 Out of State 183 217 2,261 2,434 TOTAL: 2,029 1,515 22,099 23,048 DISMISSALS 246 208 2,901 2,345 BOOTING REVENUE $5,458 $3,645 $42,942 $44,516 PARKING PERMITS: Driveway 2 2 26 22 Guest Party Passes 943 746 5,581 5,395 Temp. Res. Passes 0 100 515 450 Contractor 62 50 535 466 Daily 25 7 127 60 Annual Preferential Transferable 171 132 4,593 4,688 Vehicle 318 246 4,990 5,090 TOTAL: 489 378 9,583 9,778 MTA BUS PASSES TAXI VOUCHERS SOLD TAXI VOUCHERS USED' CASH KEYS SOLD CASH KEY REVENUE ANIMAL LICENSES BUSINESS LICENSES Licenses Issued Revenue 7 3 57 56 460 370 4,020 3,190 234 243 2,923 2,439 13 8 89 68 $750 $400 $4,790 $2,250 25 31 904 977 313 262 2,834 2,852 $86,428.84 $76,233.02 $693,320.00 $690,070.18 NOTED: Stephen R. Burwell, City Manager 2 Respectfully submitted: Viki Co.eland, Finance Director f:/b95/financeI/linactivity'fOT.doc • HERMOSA BEACH FIRE DEPARTMENT MONTHLY ACTIVITY REPORT FOR CALENDAR YEAR 2004 JUNE .- _ FIRE ST,TsT C ,t, THIS MO. THIS MONTH THIS MONTH LAST YEAR YEAR TO DATE LAST YEAR TO DATE INSPECTIONS AND PREVENTION LAST F/Y TO DATE , 16 29 ORIGINAL INSPECTION 390 $ 4,336 $105,148 $ 97,878 COMMERCIAL 0 62 4 189 ASSEMBLY 0 3 0 5 INSTITUTIONS 0 0 0 3 INDUSTRIAL 0 9 0 21 APARTMENTS 0 24 0 42 RE -INSPECTION COMMERCIAL 1 4 23 57 ASSEMBLY 0 0 0 1 INSTITUTIONS 0 0 0 3 INDUSTRIAL 0 0 0 10 APARTMENTS 0 6 1 55 OCCUPANCY LOAD 0 0 0 0 CITATIONS ISSUED 0 0 0 5 AMBULANCE ACTIVITY REPORT FOR FISCAL YEAR 2003/2004 INV BILL FOR EMS THIS MO. THIS MO. LAST F/Y F/Y TO DATE LAST F/Y TO DATE THIS MO. F/Y TO DATE LAST F/Y TO DATE RES. 16 29 388 390 $ 4,336 $105,148 $ 97,878 NON -RES. 34 25 289 210 $18,394 $175,284 $117,869 TOTALS 50 54 598 600 $22,730 $280,432 $215,747 Respectfully Submitted: sMn RUSSELL TINGL Y, FIRE CHIEF Noted: STEVE BU' ' I MANAGER • • Incidents by Day of Week Date Range: From 06/01/2004 To 06/30/2004 32 28 24 20 16 12 Day of the Week Number of Incidents Sunday Monday Tuesday Wednesday Thursday Friday Saturday 26 26 32 21 12 21 18 aa,A «c INC014 (3.00) Page 1 of 1 Printed 07/20/2004 at 10:10:56 • • Incidents by Day of Week Date Range: From 01/01/2004 To 06/30/2004 170 160 150 140 130 120 110 100 Day of the Week Number of Incidents Sunday Monday Tuesday Wednesday Thursday Friday Saturday 162 146 107 126 124 126 137 --0- r �`°caa�l °yaa� 0 a• c 1NC014 (3.00) Page 1 of 1 Printed 07/20/2004 at 10:11:20 • • Incidents by Time of Day Date Range: From 06/01/2004 To 06/30/2004 14 12 10 8 6 4 2 0 Time of Day Number of Incidents 00:00:00 to 00:59:59 2 01:00:00 to 01:59:59 8 02:00:00 to 02:59:59 6 03:00:00 to 03:59:59 4 04:00:00 to 04:59:59? 5 05:00:00 to 05:59:59 1 06:00:00 to 06:59:59 07:00:00 to 07:59:59 08:00:00 to 08:59:59 09:00:00 to 09:59:59 10:00:00 to 10:59:59 11:00:00 to 11:59:59 12:00:00 to 12:59:59 13:00:00 to 13:59:59 14:00:00 to 14:59:59 15:00:00 to 15:59:59 16:00:00 to 16:59:59 17:00:00 to 17:59:59 18:00:00 to 18:59:59 19:00:00 to 19:59:59 20:00:00 to 20:59:59 21:00:00 to 21:59:59 22:00:00 to 22:59:59 23:00:00 to 23:59:59 5 2 8 9 10 8 10 7 8 13 11 6 4 10 5 3 6 5 156 .7 ti o°o°o°o°o°o°o°o°o°cPo°cPcPo°o°o°cPo°o°o°o°o°o°o° "5• C'• h' 6 1• 0 cb• N°' NN' dry <5. Na. Nc'. N6. <1• N9. rP. ti>. 15' tiC3• INCO15 (3.00) Page 1 of 1 Printed 07/20/2004 at 10:11:52 • • Incidents by Time of Day Date Range: From 01/01/2004 To 06/30/2004 60 50 40 30 20 10 Time of Day Number of Incidents 00:00:00 to 00:59:59 01:00:00 to 01:59:59 02:00:00 to 02:59:59 03:00:00 to 03:59:59 04:00:00 to 04:59:59 05:00:00 to 05:59:59 06:00:00 to 06:59:59 07:00:00 to 07:59:59 08:00:00 to 08:59:59 09:00:00 to 09:59:59 10:00:00 to 10:59:59 11:00:00 to 11:59:59 12:00:00 to 12:59:59 13:00:00 to 13:59:59 14:00:00 to 14:59:59 15:00:00 to 15:59:59 16:00:00 to 16:59:59 17:00:00 to 17:59:59 18:00:00 to 18:59:59 19:00:00 to 19:59:59 20:00:00 to 20:59:59 21:00:00 to 21:59:59 22:00:00 to 22:59:59 23:00:00 to 23:59:59 28 40 32 21 15 14 25 26 29 40 40 48 48 56 48 60 54 46 41 60 44 41 40 32 A/ 928 • cPo°o°o°o°o°cc' o°o°cPo°o°o°o°o°CPCPo°o°o°o°o°o°o° o• N• ti a• h• 0• 0• 0• NO' ^ .`L �� NIX' .0' ° �� ,,°• ti°' �^' titi. 'L`5• INC015 (3.00) Page 1 of 1 Printed 07/20/2004 at 10:12:05 . • • Incident Type Count Report , Date Range: From 06/01/2004 To 06/30/2004 Selected Station(s): All Incident Type Description Count Station: 11 100 - Fire, other 1 0.64% 113 - Cooking fire, confined to container 1 0.64% 151 - Outside rubbish, trash or waste fire 1 0.64% Total - Fires 3 8.11% 321 - EMS call, excluding vehicle accident with injury 19 12.18% 322 - Vehicle accident with injuries 1 0.64% Total - Rescue & Emergency Medical Service Incidents 20 54.05% 463 - Vehicle accident, general cleanup 2 1.28% Total - Hazardous Conditions (No fire) 2 5.41% 522 - Water or steam leak 1 0.64% 550 - Public service assistance, other 1 0.64% 553 - Public service 1 0.64% Total - Service Call 3 8.11% 600 - Good intent call, other 1 0.64% 611 - Dispatched & cancelled en route 4 2.56% 651 - Smoke scare, odor of smoke 1 0.64% Total - Good Intent Call 6 16.22% 700 - False alarm or false call, other 1 0.64% 730 - System malfunction, other 2 1.28% Total - Fals Alarm & False Call 3 8.11% Total for Station 37 23.72% Station: 101 111 - Building fire 2 1.28% 112 - Fires in structures other than in a building 1 0.64% 113 - Cooking fire, confined to container 1 0.64% 118 - Trash or rubbish fire, contained 1 0.64% Total - Fires 5 5.49% 321 - EMS call, excluding vehicle accident with injury 55 35.26% 322 - Vehicle accident with injuries 6 3.85% 323 - Motor vehicle/pedestrian accident (MV Ped) 1 0.64% Total - Rescue & Emergency Medical Service Incidents 62 68.13% 400 - Hazardous condition, other 3 1.92% 444 - Power line down 2 1.28% Total - Hazardous Conditions (No fire) 5 5.49% 510 - Person in distress, other 1 0.64% 520 - Water problem, other 3 1.92% 522 - Water or steam leak 4 2.56% Total - Service Call 8 8.79% 611 - Dispatched & cancelled en route 7 4.49% INC065 (3.01) Page 1 of 2 Printed 07/20/2004 10:12:47 • • Incident Type Description Station; 101 - (Continued) Total - Good Intent Call Count 7 7.69% 700 - False alarm or false call, other 1 0.64% 733 - Smoke detector activation due to malfunction 1 0.64% 735 - Alarm system sounded due to malfunction 1 0.64% 740 - Unintentional transmission of alarm, other 1 0.64% Total - Fals Alarm & False Call 4 4.40% Total for Station 91 58.33% Station: 2Q1 321 - EMS call, excluding vehicle accident with injury 9 5.77% Total - Rescue & Emergency Medical Service Incidents 9 75.00% 611 - Dispatched & cancelled en route Total - Good Intent Call 3 1.92% 3 25.00% Total for Station 12 7.69% Station: 202 321 - EMS call, excluding vehicle accident with injury 4 2.56% 322 - Vehicle accident with injuries 1 0.64% Total - Rescue & Emergency Medical Service Incidents 5 62.50% 611 - Dispatched & cancelled en route 2 1.28% Total - Good Intent Call 2 25.00% 742 - Extinguishing system activation Total - Fals Alarm & False Call 1 0.64% 1 12.50% Total for Station 8 5.13% Station: 6Q1 111 - Building fire 1 0.64% Total - Fires 1 33.33% 611 - Dispatched & cancelled en route 2 1.28% Total - Good Intent Call 2 66.67% Total for Station 3 1.92% Station: UNK 111 - Building fire 1 0.64% Total - Fires 1 20.00% 321 - EMS call, excluding vehicle accident with injury 1 0.64% Total - Rescue & Emergency Medical Service Incidents 1 20.00% 611 - Dispatched & cancelled en route 3 1.92% Total - Good Intent Call 3 60.00% Total for Station 5 3.21% 156 100.00% INC065 (3.01) Page 2 of 2 Printed 07/20/2004 10:12:47 • • Incident Type Count Report Date Range: From 01/01/2004 To 06/30/2004 Selected Station(s): All Incident Type Description Count Station: 321 - EMS call, excluding vehicle accident with injury 3 0.32% Total - Rescue & Emergency Medical Service Incidents 3 60.00% 463 - Vehicle accident, general cleanup Total - Hazardous Conditions (No fire) 742 - Extinguishing system activation Total - Fals Alarm & False Call 1 20.00% 1 20.00% Total for Station 5 0.54% Station: 11 100 - Fire, other 1 0.11% 110 - Structure fire, other 1 0.11% 111 - Building fire 4 0.43% 112 - Fires in structures other than in a building 1 0.11% 113 - Cooking fire, confined to container 1 0.11% 151 - Outside rubbish, trash or waste fire 1 0.11% Total - Fires 9 4.95% 210 - Overpressure rupture from steam, other 1 0.11% Total - Overpressure Rupture, Explosion, Overheat - no fire 1 0.55% 321 - EMS call, excluding vehicle accident with injury 108 11.64% 3210 - EMS Call on the Strand 2 0.22% 322 - Vehicle accident with injuries 8 0.86% 323 - Motor vehicle/pedestrian accident (MV Ped) 2 0.22% 331 - Lock -in (if lock out , use 511) 1 0.11% Total - Rescue & Emergency Medical Service Incidents 121 66.48% 440 - Electrical wiring/equipment problem, other 3 0.32% 463 - Vehicle accident, general cleanup 2 0.22% Total - Hazardous Conditions (No fire) 5 2.75% 510 - Person in distress, other 1 0.11% 520 - Water problem, other 1 0.11% 522 - Water or steam leak 1 0.11% 540 - Animal problem, other 1 0.11% 550 - Public service assistance, other 3 0.32% 553 - Public service 5 0.54% Total - Service Call 12 6.59% 600 - Good intent call, other 3 0.32% 611 - Dispatched & cancelled en route 16 1.72% 632 - Prescribed fire 1 0.11% 651 - Smoke scare, odor of smoke 1 0.11% Total - Good Intent Call 21 11.54% 700 - False alarm or false call, other 3 0.32% 1 0.11% 713 - Telephone, malicious false alarm INC065 (3.01) Page 1 of 4 Printed 07/20/2004 10:13:03 Incident Type Description Count Station; 11 - (Continued) 730 - System malfunction, other 4 0.43% 733 - Smoke detector activation due to malfunction 2 0.22% 743 - Smoke detector activation, no fire - unintentional 1 0.11% Total - Fals Alarm & False Call 11 6.04% 900 - Special type of incident, other 1 0.11% 911 - Citizen complaint 1 0.11% Total - Special Incident Type 2 1.10% Total for Station 182 19.61% Station: 101 100 - Fire, other 1 0.11% 111 - Building fire 6 0.65% 112 - Fires in structures other than in a building 1 0.11% 113 - Cooking fire, confined to container 2 0.22% 114 - Chimney or flue fire, confined to chimney or flue 1 0.11% 118 - Trash or rubbish fire, contained 4 0.43% 131 - Passenger vehicle fire 1 0.11% 150 - Outside rubbish fire, other 1 0.11% 151 - Outside rubbish, trash or waste fire 1 0.11% Total - Fires 18 3.00% 231 - Chemical reaction rupture of process vessel 1 0.11% Total - Overpressure Rupture, Explosion, Overheat - no fire 1 0.17% 300 - Rescue, emergency medical call (EMS) call, other 2 0.22% 321 - EMS call, excluding vehicle accident with injury 376 40.52% 3210 - EMS Call on the Strand 6 0.65% 322 - Vehicle accident with injuries 28 3.02% 323 - Motor vehicle/pedestrian accident (MV Ped) 7 0.75% 331 - Lock -in (if lock out , use 511 ) 1 0.11% 357 - Extrication of victim(s) from machinery 1 0.11% 381 - Rescue or EMS standby 1 0.11% Total - Rescue & Emergency Medical Service Incidents 422 70.22% 40 - Hazardous condition, other 1 0.11% 400 - Hazardous condition, other 13 1.40% 410 - Flammable gas or liquid condition, other 2 0.22% 411 - Gasoline or other flammable liquid spill 1 0.11% 412 - Gas leak (natural gas or LPG) 3 0.32% 413 - Oil or other combustible liquid spill 1 0.11% 422 - Chemical spill or leak 2 0.22% 444 - Power line down 3 0.32% 445 - Arcing, shorted electrical equipment 3 0.32% Total - Hazardous Conditions (No fire) 29 4.83% 500 - Service Call, other 4 0.43% 51 - Person in distress. 1 0.11% 510 - Person in distress, other 2 0.22% 511 - Lock -out 6 0.65% 512 - Ring or jewelry removal 1 0.11% 520 - Water problem, other 8 0.86% 522 - Water or steam leak 16 1.72% 531 - Smoke or odor removal 6 0.65% 1NC065 (3.01) Page 2 of 4 Printed 07/20/2004 10:13:03 • • Incident Type Description Count Station; 1Q1 - (Continued) 541 - Animal problem 3 0.32% 551 - Assist police or other governmental agency 3 0.32% 553 - Public service 2 0.22% 554 - Assist invalid 1 0.11% 561 - Unauthorized burning 1 0.11% Total - Service Call 54 8.99% 600 - Good intent call, other 6 0.65% 611 - Dispatched & cancelled en route 22 2.37% 651 - Smoke scare, odor of smoke 3 0.32% 652 - Steam, vapor, fog or dust thought to be smoke 1 0.11% 653 - Barbecue, tar kettle 2 0.22% 671 - Hazmat release investigation w/ no hazmat 2 0.22% Total - Good Intent Call 36 5.99% 700 - False alarm or false call, other 5 0.54% 714 - Central station, malicious false alarm 1 0.11% 730 - System malfunction, other 5 0.54% 733 - Smoke detector activation due to malfunction 5 0.54% 735 - Alarm system sounded due to malfunction 5 0.54% 740 - Unintentional transmission of alarm, other 4 0.43% 741 - Sprinkler activation, no fire - unintentional 2 0.22% 743 - Smoke detector activation, no fire - unintentional 2 0.22% 744 - Detector activation, no fire - unintentional 1 0.11% 745 - Alarm system sounded, no fire - unintentional 6 0.65% Total - Fals Alarm & False Call 36 5.99% 900 - Special type of incident, other 2 0.22% 911 - Citizen complaint 2 0.22% Total - Special Incident Type 4 0.67% UUUT - Test Call - No Incident 1 0.17% Total for Station 601 64.76% Station: 2Q1 11 - Structure Fire 1 0.11% 111 - Building fire 3 0.32% 113 - Cooking fire, confined to container 1 0.11% Total - Fires 5 10.20% 321 - EMS call, excluding vehicle accident with injury 34 3.66% 3210 - EMS Call on the Strand 1 0.11% Total - Rescue & Emergency Medical Service Incidents 35 71.43% 611 - Dispatched & cancelled en route Total - Good Intent Call 9 0.97% 9 18.37% Total for Station 49 5.28% Station: 202 110 - Structure fire, other 1 0.11% 111 - Building fire 1 0.11% Total - Fires 2 4.08% 32 - Emergency medical service (EMS) 321 - EMS call, excluding vehicle accident with injury 1 0.11% 29 3.13% 1NC065 (3.01) Page 3 of 4 Printed 07/20/2004 10:13:03 • • Incident Type Description Count Station; 202 - (Continued) 322 - Vehicle accident with injuries 4 0.43% 323 - Motor vehicle/pedestrian accident (MV Ped) 1 0.11% Total - Rescue & Emergency Medical Service Incidents 35 71.43% 600 - Good intent call, other 1 0.11% 611 - Dispatched & cancelled en route 9 0.97% Total - Good Intent Call 10 20.41% 700 - False alarm or false call, other 1 0.11% 742 - Extinguishing system activation 1 0.11% Total - Fals Alarm & False Call 2 4.08% Total for Station 49 5.28% Station: 601 111 - Building fire 1 0.11% Total - Fires 1 7.14% 321 - EMS call, excluding vehicle accident with injury Total - Rescue & Emergency Medical Service Incidents 611 - Dispatched & cancelled en route Total - Good Intent Call 7 0.75% 7 50.00% 6 0.65% 6 42.86% Total for Station 14 1.51% Station: UNK 111 - Building fire 2 0.22% 143 - Grass fire 1 0.11% Total - Fires 3 10.71% 321 - EMS call, excluding vehicle accident with injury 13 1.40% 322 - Vehicle accident with injuries 3 0.32% 353 - Removal of victim(s) from stalled elevator 1 0.11% Total - Rescue & Emergency Medical Service Incidents 17 60.71% 611 - Dispatched & cancelled en route 8 0.86% Total - Good Intent Call 8 28.57% Total for Station 28 3.02% 928 100.00% INC065 (3.01) Page 4 of 4 Printed 07/20/2004 10:13:03 ' • •y Jul 21, 2004 Honorable Mayor and Members of Regular Meeting of the Hermosa Beach City Council July 27, 2004 PERSONNEL DEPARTMENT ACTIVITY REPORT June 2004 STATISTICS CURRENT THIS MONTH FY TO LAST FY MONTH LAST YEAR DATE TO DATE Workers Comp Claims Claims opened 3 2 28 25 Claims closed 3 4 21 22 Total open 58 54 Current Employee 39 36 Lost time (hours) Safety Fire 480 656 645 5577.50 6700.50 Police 176 Non -Safety 0 170 0 1176 Liability Claims Claims opened 1 2 27 34 Claims closed 2 0 28 37 Total open 28 23 Employee -Involved Vehicle Accidents Safety 0 0 0 1 Non -safety 0 0 0 1 Employee Turnover Safety Non -Safety 0 0 3 3 1 3 4 11 Respectfully submitted, Not d: Miiael A. Earl, Director Stephen R. Burrell Personnel & Risk Management City Manager • Honorable Mayor and Members of the Hermosa Beach City Council July 19, 2004 Regular Meeting of July 27, 2004 PUBLIC WORKS DEPARTMENT MONTHLY REPORT — JUNE 2004 The Public Works Department is divided into three (3) major functions: Administration, Engineering and Maintenance. ADMINISTRATION The administration function coordinates and blends the efforts of all divisions of the Public Works Department in accomplishing the directives of the City Council and City Manager; this includes engineering and management of Capital Improvements Projects. NON-CIP PROJECTS PLAN CHECKS SEWER LATERAL SEWER DEMO. STREET EXCAV. BANNERS DUMPSTER/ MISC. UTIL. CO. CUTS ENCR./C.U.P. ETC. CURRENT MONTH 8 rec'd 8 ret'd 6 2 16 9 25 9 3 YEAR TO DATE 112 rec'd 112 ret'd 40 54 83 46 223 57 26 NON-CIP PROJECTS STAFF HOURS DESCRIPTION CURRENT PREVIOUS YEAR TO MONTH DATE Field Investigations 37 31 292 Inspections 141 133 1,505 NPDES Permit/City Storm Water Management Program 18 2 175 General Office Engineering 74 83 795 Grant Applications 0 3 15 Projects 29 5 269 Meetings - Other Public Agencies 10 0 120.5 NPDES Investigations 8 4 83 TOTAL HOURS 317 178 3254.5 SERVICE REQUESTS RECEIVED CURRENT MONTH COUNTS* COMPLETED YTD DESCRIPTION RECEIVED YTD Building Maintenance 56 706 647 Medians 0 21 19 Parks 19 275 233 Sewers 2 85 79 Storm Drains 1 52 46 Street Lighting 7 143 127 Street Maintenance 33 392 350 Traffic Safety 37 355 315 Vehicle Maintenance 40 450 444 Other 42 177 147 Call -Outs (Services provided after hours and/or on weekends) ** 14 44 44 TOTALS 251 2700 2451 *All counts are for FY 03-04. ** Started counting 1/1/04. 90.8% ENGINEERING W •The Capital Improvement Proiects currently in progress or completed are: COMPLETED PROJECT NO. 02 - 147* 01 - 159 01 - 174 02 - 189 00 - 192 00 - 410 00 - 411 95 - 507 02 - 626 TITLE Curb-Cuts/Handicap Ramps Hillcrest & Rhodes, 18th to 21st Artesia Boulevard — PCH to Harper Ave. Myrtle Area Street Improvements Loma Area Street Improvements Loma Area Sewer Improvements Sewer Rehab — Target Area 1 Valley Park Improvements Community Center Theater — ADA Upgrades, Phases 1 & 2 TOTAL COMPLETED 03-04 BUDGET AMOUNT 250,000 590,000 43,770 863,100 241,261 189,232 292,023 1,980,000 346,335 4,795,721 UNDER CONSTRUCTION PROJECT NO. 02 - 185 95 - 622 TITLE 5th Street — PCH to Ardmore Ave. City Hall Remodel (007-04 Handrails) TOTAL UNDER CONSTRUCTION 03-04 BUDGET AMOUNT 212,000 25,000 237,000 OUT TO BID PROJECT NO. TITLE 00 - 630 Pier Renovation, Phase III TOTAL OUT TO BID 03-04 BUDGET AMOUNT 2,842,327.% 2,842,327 UNDER DESIGN PROJECT NO. 02 - 108 03 - 109 03 - 110 00 - 140 99 - 409 99 - 610 TITLE 2nd Street Resurfacing Concrete Road Reconstruction Slurry Seal at Various Locations 11th St. On Street Parking Improvements Manhole Repair/Reconstruction Fire Station Upstairs Remodel & Additions TOTAL TO BE DESIGNED 03-04 BUDGET AMOUNT 380,000 100,000 120,000 293,596 150,000 169,417 1,213,013 TO BE DESIGNED PROJECT NO. 02 - 188 02 - 193 00 - 412 03 - 418 02 - 634 03 - 635 TITLE 10th St. from Ocean to Prospect — ON HOLD Various Street Improvements #4 — ON HOLD Sewer Rehabilitation — Target Area 2 — ON HOLD Pump Station Upgrades Exterior Painting of City Buildings— ON HOLD Community Center Shed Demolition— ON HOLD TOTAL TO BE DESIGNED 03-04 BUDGET AMOUNT 20,000 266,530 80,000 300,000 14,500 35,000 716,030 *02-03 Budget — Project will be completed 03-04 2 MAINTENANCE • The maintenance function of the Public Works Department is divided into the following sections: • Building Maintenance • Equipment Service • Parks/Medians • Sewers/Storm Drains • Street Lighting • Street Maintenance/Traffic Safety Building Maintenance: Changed marquee; repaired Strand restrooms; repaired City Hall drinking fountains; repaired Base III water heater; delivered cases of paper to departments; graffiti removal; inspected all buildings with janitorial contractor; replaced broken windows at the Community Center; set up Council Chambers for meetings. Equipment Service Division: On-going vehicle maintenance; repaired radios; repaired Fire Department ambulance; repaired pressure washer; assisted Fire Department with new compressor; installed Police Department decals. Parks/Medians Division: Repaired irrigation in various parks through the City; assisted with 18th Street rehabilitation; installed new irrigation and landscaping at City Hall; rebuilt 22nd St. irrigation; replaced flow sensors for Greenbelt irrigation; sent letters to residents regarding tree issues; removed graffiti, repaired Clark Field baseball diamond irrigation. Sewers/Storm Drain Division: Assisted with Building Maintenance repairs at City Hall; inspected sewer at 926 Monterey for construction; assisted with sewer inspection at 1820 Ardmore; started plumbing repairs at Base Ill, reset pumps in the parking structure; opened drains on the beach for flooding; assisted with July 4th preparations. Street Lighting Division: Removed and replaced banners; installed and removed traffic counters; re- lamped traffic signals; assisted with 18th St. rehabilitation new electrical system; removed and re- installed closet in Police Department for computer system; developed plans for temporary phones and electrical for Pier renovation; assisted with citywide asphalt repairs. Street Maintenance/Traffic Safety Division: Put up and took down flats; prepared for July 4th; graffiti removal citywide; moved new trash cans citywide; removed bus benches from Aviation Boulevard; repainted Strand yellow line; removed weeds from PCH sidewalks; repaired sidewalk on Prospect; ground down portions of Ozone to cure water flow problems; did newsrack survey. Graffiti Removal: FY 03-04 FY 02-03 MONTH HOURS MONTH HOURS JULY 30.0 JULY 9.5 AUGUST 29.5 AUGUST 25.5 SEPTEMBER 39.5 SEPTEMBER 33.5 OCTOBER 23.0 OCTOBER 11.5 NOVEMBER 28.0 NOVEMBER 28.0 DECEMBER 24.5 DECEMBER 22.0 JANUARY 17.0 JANUARY 29.5 FEBRUARY 6.5 FEBRUARY 28.5 MARCH 28.0 MARCH 13.0 APRIL 11.5 APRIL 162.5 MAY 167.5 MAY 22.0 JUNE 51.0 JUNE 24.0 TOTALS 456.0 409.5 3 Respectfully submitted: Rhea B. Punneo Administrative Assistant Noted: Stepp . ur I City Manager / Concur: Richard,:. Morgan, P.E. Director of Public Works/City Engineer 4 H:\B95\PWFILES\Activity Reports\Activity Report 03-04 April.doc Comprehensive Annual Financial Report i City of Hermosa Beach Hermosa Beach, California Comprehensive Annual Financial Report For the year ended June 30, 2003 PREPARED BY THE CITY OF HERMOSA BEACH, CALIFORNIA FINANCE DEPARTMENT VIKI L. COPELAND, FINANCE DIRECTOR INTRODUCTORY SECTION I N V M I I N OM I MN NM = E OM M 1111111 M MO N INTRODUCTORY SECTION wO3'sexapUwdd'MMM 1.6L6-ZZtf-008 saliJ Ig saxapui reuoissa;oad City of HermosaBeach Basic Financial Statements For the year ended June 30, 2003 Table of Contents IINTRODUCTORY SECTION Page Table of Contents i Letter of Transmittal v Certificate of Achievement for Excellence in Financial Reporting - Governmental Finance Officers Association xi ' Certificate of Award for Outstanding Financial Reporting - California Society of Municipal Finance Officers xii Organizational Chart xiii Principal Officials of the City of Hermosa Beach xiv FINANCIAL SECTION Independent Auditors' Report 1 Management Discussion and Analysis 3 Basic Financial Statements: Government - Wide Financial Statements: Statement of Net Assets 17 Statement of Activities and Changes in Net Assets 18 Fund Financial Statements: ' Governmental Fund Financial Statements: Balance Sheet 26 Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets 29 Statement of Revenues, Expenditures and Changes in Fund Balances 30 ' Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government - Wide Statement of Activities and Changes in Net Assets 32 Proprietary Fund Financial Statements: Statement of Net Assets 36 L Statement of Revenues, Expenses and Changes in Fund Net Assets 37 Statement of Cash Flows 38 ' Fiduciary Fund Financial Statements: Statement of Fiduciary Net Assets 42 Index to Notes to Basic Financial Statements 43 ' Notes to Basic Financial Statements 45 Required Supplementary Information 75 City of Hermosa Beach Basic Financial Statements For the year ended June 30, 2003 Table of Contents, Continued Page FINANCIAL SECTION, Continued Supplementary Information: Non -Major Governmental Funds: Combining Balance Sheet 88 Combining Statement of Revenues, Expenditures and Changes in Fund Balances 94 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Non -Major Special Revenue Funds: Lighting and Landscape District 99 State Gas Tax 100 AB 939 101 Compensated Absences 102 County Gas Tax 103 Prop A Open Space 104 Parks and Recreation Facilities 105 4% Utility Users Tax 106 Building Improvement 107 Lower Pier Administrative Expense 108 Myrtle District Administrative Expense 109 Loma District Administrative Expense 110 Community Development Block Grant 111 Office of Traffic Safety Grant 112 Air Quality Management District 113 Supplemental Law Enforcement Services (COPS) 114 California Law Enforcement Program (CLEEP) 115 Taskforce for Regional Auto Theft Prevention 116 Asset Seizure and Forfeiture Fund 117 Fire Protection 118 Artesia Boulevard Relinquishment 119 Lower Pier Avenue Assessment District 120 Myrtle Utility Underground Improvement 121 Loma Utility Underground Improvement 122 Bayview Drive Underground District 123 Bonnie Brae Underground District 124 Beach Drive Underground District 125 Non -Major Proprietary Funds: Combining Statement of Net Assets 128 Combining Statement of Revenues, Expenditures and Changes in Net Assets 129 Combining Statement of Cash Flows 130 Internal Service Funds: Combining Statement of Net Assets 132 Combining Statement of Revenues, Expenses and Changes in Net Assets 133 Combining Statement of Cash Flows 134 ii i t 1 City of Hermosa Beach Basic Financial Statements For the year ended June 30, 2003 Table of Contents, Continued 'FINANCIAL SECTION, Continued Page Supplementary Information, Continued: I Fiduciary Fund Financial Statements: Combing Statement of Fiduciary Net Assets 136 I Combing Statement of Changes in Assets and Liabilities 137 Capital Assets Used in the Operating Of Governmental Funds: I Schedule by Source 140 Schedule by Function and Activity 141 Schedule of Changes in Capital Assets by Function and Activity 142 ISTATISTICAL SECTION (Unaudited) Government -Wide Revenues 144 IGovernment -Wide Expense - By Function 145 General Governmental Revenues by Source - Last Ten Fiscal Years 146 General Governmental Expenditures by Function - Last Ten Fiscal Years 147 I Assessed and Estimated Actual Value of Taxable Property - Last Ten Fiscal Years 148 Property Tax Rates and Tax Levies - All Direct and Overlapping Governments - Last Ten Fiscal Years 149 Property Tax Levies and Collections - Last Ten Fiscal Years 150 I Computation of Legal Debt Margin 151 Statement of Direct and Overlapping Debt 152 Demographic Statistics - Last Ten Fiscal Years 153 I Construction Value, Property Value and Bank Deposits - Last Ten Fiscal Years 154 Schedule of Insurance 155 Top Property Taxpayers 156 1 Top 25 Sales Tax Producers 157 Major Employers 158 Taxable Sales by Category 159 1 Miscellaneous Statistics 160 iii This page intentionally left blank. iv City o f liermosarl3eaclt. Civic Center, 1315 Valley Drive, Hermosa Beach, California 90254-3885 January 14, 2004 Honorable Mayor and Members of the City Council: Introduction I am pleased to present the Comprehensive Annual Financial Report (CAFR) of the City of Hermosa Beach for the fiscal year ended June 30, 2003. The report is intended to update readers on the status of the City's financial position and results of operations for the past fiscal year. This is the first CAFR prepared using the new financial reporting requirements established by Governmental Accounting Standards Board (GASB) Statement 34 for state and local governments throughout the United States. Some of the information previously reported is retained, including financial statements that present information about funds. New information includes a required management's discussion and analysis (MD&A), which gives readers an objective and easily readable analysis of the government's financial performance for the year and government -wide financial statements, prepared using accrual accounting for all of the government's activities. Long term assets and liabilities (such as capital assets, including infrastructure and general obligation debt) are measured in addition to current assets and liabilities. This letter of transmittal is designed to complement MD&A and should be read in conjunction with it. The City of Hermosa Beach's MD&A can be found immediately following the report of the independent auditors. Management's representations concerning the finances of the City of Hermosa Beach are contained herein. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hermosa Beach has established an internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hermosa Beach's financial statements in conformity with generally accepted accounting principles (GAAP) . Because the cost of internal controls should not outweigh their benefits, the City of Hermosa Beach's framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Audit The City of Hermosa Beach's financial statements have been audited by Caporicci & Larson, a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hermosa Beach for the fiscal year ended June 30, 2003, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial V statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unqualified opinion that the City of Hermosa Beach's financial statements for the fiscal year ended June 30, 2003, are fairly presented in conformity with GAAP. The independent auditor's report is presented as the first component of the financial section of this report. Profile of the Government The City of Hermosa Beach is a beachfront, bedroom community with a stable population, located four miles south of Los Angeles International Airport. The City occupies 1.3 square miles and serves a population of 19,375, according to the State's latest population estimate. However as a beach city, Hermosa experiences a high visitor population and the associated costs. Due to this high visitor population, the City operates in many ways like a larger city. During the 2002-03 fiscal year, beach attendance ranged from a low of 45,400 in October 2002 to a high of 730,000 in July 2003, according to the Los Angeles County Fire Department, Lifeguard Division. The City of Hermosa Beach, incorporated on January 14, 1907 as a general law city, operates under the Council -Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of five members of the City Council elected on a non- partisan basis at large for a four-year term. Councilmembers serve four-year, staggered terms, with an election every two years. One member is chosen by fellow members to serve as Mayor for a period of nine months; one is chosen to serve as Mayor Pro Tem. The Council is responsible for, among other things, establishing policy, passing ordinances, adopting an annual budget; appointing members to various City Commissions and Boards and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments. Hermosa Beach offers a full range of municipal services, including police and fire protection, community development (planning and zoning), cultural, recreation and parks, maintenance and construction of public improvements, parking and animal control, and general administration. Financial information for the Downtown Business Area Enhancement District, the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue and Loma Drive Utility Underground Districts are included in the City's financial statements as required by governmental accounting standards. The annual budget serves as the foundation for the City of Hermosa Beach's financial planning and control. All departments of the City of Hermosa Beach are required to submit requests for appropriation to the City Manager according to a budget calendar. . The City Manager uses these requests as the starting point for developing a proposed budget, which is presented to the City Council for review by May 15. The City Council is required to hold a public hearing on the budget, with adoption no later than June 30th. The appropriated budget is prepared by fund and department (e.g., police). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. A midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budget -to -actual comparisons are provided vi in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 77 as part of the basic financial statements for the governmental funds. For gdvernmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented as supplementary information in the governmental fund subsection of this report, which starts on page 99. Factors Affecting Financial Condition The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Hermosa Beach operates. Local economy. As a beachfront community, with more bedrooms than businesses, Hermosa Beach had the ninth highest percentage change in assessed valuation of the 88 cities in Los Angeles County for 2002-03. The assessed valuation has risen, on average, 9% per year for the past five years, making property tax the number one revenue source in the General Fund. Median home prices in Hermosa Beach as of June 2003 were $644,000, compared to 329,000 for Los Angeles County. Hermosa Beach's three highest employment industries are food services, administrative and support and retail trade, however residents enjoy access to a much more diverse employment base with the close proximity of all of the other cities in Los Angeles County. The unemployment rate in Hermosa Beach is 1.7%, compared with 6.8% for Los Angeles County. Sales tax growth up until 2001-02, averaged 12% per year, with a proliferation of eating and drinking places, particularly in the downtown area, and sales of high-end new and used vehicles. With the loss of two auto dealerships over 2001-2003, sales tax declined by 8%, however a 32% increase in transient occupancy tax from two new hotels and the expansion of an existing beachfront hotel, more than offset the loss for that period. California Public Employees Retirement System (Ca1PERS). City retirement rates will increase for the next two years significantly (particularly 2004-05) due to investment losses sustained by CaIPERS. Actual losses for 2002 and 2001, respectively were - 5.97% and - 7.23% compared to estimated earnings of + 8.25% for each year. On a positive note, however, Ca1PERS just announced that earnings were + 18.7% for 2003, suggesting a return to a healthier portfolio and higher investment returns which could pave the way for lower city contribution rates. State budget. Discussion of the local economy would not be complete without mention of the State's condition as well, since in past years, the State has balanced a portion of their budget with funds taken from local government. The State has faced an ever-growing deficit since the 2002-03 budget was presented. As of this writing, the State has "borrowed" from local government $1.3 billion in vehicle license fee revenue for June 2003 through November 2003 (ostensibly to be paid back in 2006) and proposes to shift another $1.3 billion in property tax funds to balance the State budget. Raids of this type make budget -balancing at the local level somewhat of a guessing game. vii Long-term financial planning. The City's long term financial planning focuses on the Five - Year Capital Improvement Plan, which is produced in conjunction with the annual budget. Since the City is built out, the plan primarily addresses maintenance, repair and upgrading of facilities and infrastructure, particularly streets and sewers. One of the City's financial policies is to set aside funds unspent in the General Fund at year-end for four purposes, one of which is capital improvements. These funds are primarily spent for street improvements. Sewer and storm drain improvements are funded by a portion of the utility user tax revenue which is set aside for that purpose. With renovation of City Hall and a complete overhaul of our primary park complete in 2002-03, primary projects coming up, (other than street and sewer improvements, which occur every year) are renovation of the Fire Department, architectural upgrades of the Community Center and Phase III, the final phase of the Municipal Pier Upgrade. The City will use a variety of development generated fees (such as fire flow funds), federal Community Development Block Grant Funds , grant funds from the State Wildlife Conservation Fund and Los Angeles County Proposition A Park Bond Act funds for these projects. Cash management policies and practices. Cash temporarily idle during the year was invested in obligations of the U.S. Treasury, corporate bonds and the State Treasurer's investment pool. The average maturity was 26 months and the average yield on investments was 2.17 percent. Investment income includes appreciation in the fair value of investments. Increases in fair value during the current year, however, do not necessarily represent trends that will continue; nor is it always possible to realize such amounts, especially in the case of temporary changes in the fair value of investments that the government intends to hold to maturity. Risk management. The City is self-insured up to $250,000 for liability claims. Excess coverage up to $10 million is obtained through the Independent Cities Risk Management Authority (ICRMA), a joint powers authority consisting of medium-sized California municipalities. The cost of the insurance depends on both the loss experience of member cities and the loss experience of Hermosa Beach. The City is self-insured up to $325,000 for worker's compensation claims, with statutory limit excess coverage provided through a private insurance carrier. Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the City's Risk Manager. Additional information on the City of Hermosa Beach's risk management activity can be found in Note 8 of the notes to the financial statements. Pension and other postemployment benefits. The City of Hermosa Beach provides pension benefits to safety and non -safety employees through the California Public Employees Retirement System (Ca1PERS) Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments and death benefits to plan members and beneficiaries. The City pays employee contributions as a negotiated benefit. City employer contributions are actuarially determined on an annual basis. viii The City of Hermosa Beach also provides postretirement heath care benefits for certain retirees. As of the end of the current fiscal year, there were 16 retirees receiving these benefits, which are financed on a pay-as-you-go basis. GAAP do not require governments to report a liability in the financial statements in connection with an employer's obligation to provide these benefits. Additional information on the City of Hermosa Beach's pension arrangements and postemployment benefits can be found in Note 9 in the notes to the financial statements. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Hermosa Beach for its comprehensive annual financial report (CAFR) for the fiscal year ended June 30, 2002. This was the twelfth consecutive year that the government has received this prestigious award. In order to be awarded a Certificate of Achievement, the government published an easily readable and efficiently organized CAFR. This report satisfied both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. In addition, the government has also received the CSMFO (California Society of Municipal Finance Officers Outstanding Financial Reporting Award for the past thirteen years. Due to the implementation of GASB 34 and the earlier filing deadline for the CSMFO award, the City will wait until 2003-04 to submit the report for this award. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department, with particular appreciation to Valerie Mohler, the Accounting Supervisor. We would also like to express our appreciation to the City Manager and all of the departments, including the City Clerk and City Treasurer, and to our auditors, Caporicci & Larson, for their assistance and support during this transition year. Credit also must be given to the Mayor and the City Council for their unfailing support for maintaining the highest standards of professionalism in the management of the City of Hermosa Beach's finances. Respectfully submitted, Viki Copeland Finance Director ix This page intentionally left blank. x Certificate of Achievement for Excellence in Financial Reporting Presented to City of Hermosa Beach, California For its Comprehensive Annual Financial Report for the Fiscal Year Ended June 30, 2002 A Certificate of Achievement for Excellence in Financial Reporting is presented by the Government Finance Officers Association of the United States and Canada to government units and public employee retirement systems whose comprehensive annual financial reports (CAFRs) achieve the highest standards in government accounting and financial reporting. .,&...,.z President de Executive Director xi California Societyof c�lunicipal Jinance Officers Certificate of Award Outstanding Financial Reporting 2001-2002 Presented to the ; • • • ti S City of Hermosa Beach This certificate is issued in recognition of meeting professional standards and criteria in reporting which reflect a high level of quality in the annual financial statements and in the underlying accounting system from which the reports were prepared. February 24, 2003 Chair, Professional & Technical Standards Committee Dedicated to Excellence in Municipal Financial Management UM M NM M— a w M MI— S M w I M M M M M CITY OF HERMOSA BEACH ORGANIZATIONAL CHART ELECTORATE 1 1 CITY CLERK CITY COUNCIL CITY TREASURER PLANNING COMMISSION PUBLIC WORKS COMMISSION CIVIL SERVICE BOARD BOARD OF APPEALS PARKS & RECREATION ADVISORY COMMISSION CITY PROSECUTOR CITY MANAGER CITY ATTORNEY COMMUNITY RESOURCES PUBLIC WORKS Parks & Recreation/ Facilities Management Cultural/ Recreational Athletic Programming Special Events Cable T.V. Liaison ENGINEERING Plan Checks Field Inspection Code Enforcement Encroachments Capital Improvement TRANSPORTATION Traffic Eng. Traffic Signals Traffic Signage Speed Survey MAINTENANCE Landscaping Irrigation Streets Sewer Storm Drain Building Maint. Vehicle Maint. POLICE Enforcement Investigation Detention Emergency Dispatch Reserves Special Investigations Record Bureau Crossing Guard COMMUNITY SERVICES Parking Enforcement nimal Control Meter Maintenance FIRE I Fire Suppression Fire Prevention Rescue Public Education Paramedics Disaster Preparedness Reserves Plan Checking Ambulance Transportation PERSONNEL/ RISK MANAGEMENT PERSONNEL Recruitment Training Labor Relations RISK MGT Workers' Comp Claims Liability Claims City Insurance Secretarial Support FINANCE Budget Accounting Payroll Citation Processing Animal Licenses Parking Permits Business License Bus Passes COMMUNITY DEVELOPMENT BUILDING AND SAFETY Plan Checking Field Inspection Code Enforcement PLANNING Current Planning Advanced Planning Environmental Assessment Conditional Use Permit (C.U.P.) Enforcement PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2003 Elected and Administrative Officials City Council Michael Keegan Mayor Art Yoon Mayor Pro Tempore Kathy Dunbabin Councilmember Sam Y. Edgerton Councilmember J. R. Reviczky Councilmember John Workman Elaine Doerfling Stephen Burrell Viki Copeland Sol Blumenfeld Michael Earl Michael Lavin Richard Morgan Russell Tingley Other Elected Officials Administrative Officials xiv City Treasurer City Clerk City Manager Finance Director Community Development Director Personnel Director and Risk Manager Police Chief Public Works Director Fire Chief FINANCIAL SECTION N M I N IIMI 11= En MI = NM = In N I N 11011 N FINANCIAL SECTION woo•saxepuioad•MMM 1616-ZZO-008 salij V saxapui iuuolssaloid NM IIIIII IIIII =I INN MIMI IIIIII NMI NMI Mill NMI 1E11 EMI IIIIII MO MO I NMI IIIIII 1 1 I 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 CSL Caporicci & Larson Certified Public Accountants INDEPENDENT AUDITORS' REPORT To the Honorable Mayor and City Council of the City of Hermosa Beach Hermosa Beach, California We have audited the accompanying financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (City), as of and for the year ended June 30, 2003, which collectively comprise the City's basic financial statements as listed in the table of contents. These financial statements are the responsibility of the City's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards in the United States and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall basic financial statement presentation. We believe that our audit provides a reasonable basis for our opinions. In our opinion, the basic financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2003, and the respective changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with generally accepted accounting principles in the United States. As described in Note 1 to the basic financial statements, the City adopted Statements of the Governmental Accounting Standards Board No. 34, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments; No. 37, Basic Financial Statements - and Management's Discussion and Analysis - for State and Local Governments: Omnibus; and, No. 38, Certain Financial Statement Note Disclosures. The accompanying Required Supplementary Information, such as management's discussion and analysis, budgetary comparison information and other information as listed in the table of contents, are not a required part of the basic financial statements but are supplementary information required by the Governmental Accounting Standards Board. We have applied certain limited procedures, which consisted principally of inquires of management regarding the methods of measurement and presentation of the Required Supplementary Information. However, we did not audit the information and express no opinion on it. Toll Free Ph: (877) 862-2200 Toll Free Fax: (866) 436-0927 Oakland Orange County Sacramento San Diego 180 Grand Ave., Suite 1365 3184-D Airway Avenue 777 Campus Commons Rd., Suite 200 600 'B" Street, Suite 1900 Oakland, California 94612 Costa Mesa, California 92626 Sacramento, California 95825 San Diego, California 92101 To the Honorable Mayor and City Council of the City of Hermosa Beach Hermosa Beach, California Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City's basic financial statements. The accompanying supplementary information is presented for purpose of additional analysis and is not a required part of the basic financial statements. The supplementary information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole. The introductory section and statistical tables have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion on them. Costa Mesa, California September 25, 2003 2 Management's Discussion and Analysis As management of the City of Hermosa Beach, we offer readers of the City of Hermosa Beach's financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2003. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal, which can be found on pages v -ix of this report. Financial Highlights • The assets of the City of Hermosa Beach exceeded its liabilities at the close of the most recent fiscal year by $76,566,000 (net assets). Of this amount, $15,946,000 (unrestricted net assets) may be used to meet the government's ongoing obligations to citizens and creditors. • The government's total net assets increased by $2,895,000. Approximately 66%, or $1.9 million, of this increase is attributable to initial easement fees for a transpacific, submarine, fiber optic cable system on City -owned property. • As of June 30, 2003, the City of Hermosa Beach's governmental funds reported combined ending fund balances of $12,656,000, a decrease of $387,000 in comparison with the prior year. Approximately 10% of this amount is reserved to indicate that it is not available because it has been committed for purchase orders or contracts for the prior period and will be reappropriated. The remainder is available and has been designated for a variety of purposes. • As of June 30, 2003, the unreserved fund balance for the General Fund was $276. Funds remaining unspent in the General Fund at year end are transferred equally to the Contingency Fund, Insurance Fund, Equipment Replacement Fund and the Capital Improvement Fund. The balance in the Contingency Fund (or "rainy day fund") is $2.9 million or 17% of General Fund appropriations and serves as the City's cushion against economic uncertainties. • The City of Hermosa Beach currently has no debt. Overview of the Financial Statements This discussion and analysis are intended to serve as an introduction to the City Of Hermosa Beach's basic financial statements. The City Of Hermosa Beach's basic financial statements comprise three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City of Hermosa Beach's finances, in a manner similar to a private -sector business. The statement of net assets presents information on all of the City of Hermosa Beach's assets and liabilities, with the difference between the two reported as net assets. Over time, increases or decreases in net assets may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating. The statement of activities presents information showing how the government's net assets changed during the most recent fiscal year. All changes in net assets are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and 3 expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave). Both of the government -wide financial statements distinguish functions of the City of Hermosa Beach that are principally supported by taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Hermosa Beach include legislative and legal, general government, public safety, public works, community development, and culture and recreation. The business -type activities of the City of Hermosa Beach include parking and transit operations. The government -wide financial statements include not only the City of Hermosa Beach itself, but also the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue and Loma Drive Utility Underground Districts. Although these entities are legally separate, they function for all practical purposes as part of the City, and therefore have been included as an integral part of the primary government. The government -wide financial statements can be found on pages 15-19 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hermosa Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the funds of the City of Hermosa Beach can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hermosa Beach maintains thirty-three individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the funds below, which are considered to be major funds. Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amounts for all governmental and enterprise funds for the same item. General Fund Sewer Fund Capital Improvement Fund Tyco Fund Grant Fund Contingency Fund 4 Data from the other twenty-seven governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Hermosa Beach adopts an annual appropriated budget for its general fund. A budgetary comparison statement has been provided for the General Fund to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 25-32 of this report. Proprietary funds. The City of Hermosa Beach maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Hermosa Beach uses enterprise funds to account for its parking and transit operations. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Hermosa Beach's various functions. The City of Hermosa Beach uses internal service funds to account for its fleet of vehicles, information systems and risk management/insurance. Because these services predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government -wide financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements provide separate information for the Downtown Enhancement Fund and the Parking Fund, both of which are considered to be major funds of the City of Hermosa Beach. Data from the other two enterprise funds are combined into a single, aggregated presentation. Likewise, both internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 35-38 of this report. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statement because the resources of those funds are not available to support the City of Hermosa Beach's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Funds of the Lower Pier Avenue, Myrtle Avenue and Loma Drive Undergrounding Districts are held as fiduciary funds by the City. The basic fiduciary fund financial statements can be found on pages 41-42 of this report. Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 45-74 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Hermosa Beach's progress in funding its obligation to provide pension benefits to its employees. Required supplementary information can be found on page 75-81 of this report. The combining statements referred to earlier in connection with non -major governmental funds and internal service funds are presented immediately following the required supplementary information on pensions. Combining and individual fund statements and schedules can be found on pages 85-142 of this report. 5 Government -wide Financial Analysis As noted earlier, net assets may serve over time as a useful indicator of a government's financial position. In the case of the City of Hermosa Beach, assets exceeded liabilities by $76,566,000 at the close of the most recent fiscal year. By far the largest portion of the City of Hermosa Beach's net assets, $59,232,000, (77%) reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment), less any related debt used to acquire those assets that is still outstanding. (Hermosa Beach has no debt.) The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Current and Other Assets Capital Assets Total Assets Long-term Liabilities Outstanding Other Liabilities Total Liabilities Invested in Capital Assets, Net of Related Debt Restricted Unrestricted Total Net Assets Net Assets June 30, 2003 (dollars in thousands) Governmental Activities 2003 2002 $23,072 52,435 75,507 $22,868 49,705 72,573 1,904 2,731 5,478 4,546 7,382 7,277 52,435 49,705 524 709 15,166 14,882 68,125 65,296 Business -type Activities 2003 2002 $2,218 6,797 9,015 574 574 6,797 864 780 8,441 $1,976 6,895 8,871 496 496 6,895 730 750 8,375 Total 2003 2002 $25,290 $24,844 59,232 56,600 84,522 81,444 1,904 2,731 6,052 5,042 7,956 7,773 59,232 56,600 1,388 1,439 15,946 15,632 76,566 73,671 A portion of the City of Hermosa Beach's net assets (2%) represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net assets ($15,946,000) may be used to meet the government's ongoing obligations to citizens and creditors. At the end of the current fiscal year, the City of Hermosa Beach is able to report positive balances in all three categories of net assets, both for the government as a whole, as well as for its separate governmental and business -type activities. The same situation held true for the prior fiscal year. There was an increase of $134,000 in restricted net assets reported in connection with the City of Hermosa Beach's business -type activities. The increase is the result of net income in the Proposition A and C Transit funds. The government's net assets increased by $2,895,000 during the current fiscal year. As mentioned earlier, approximately 66% ($1.9 million) of this increase is attributable to initial easement fees for a transpacific, submarine, fiber optic cable system on City -owned property. 6 Governmental activities. Governmental activities increased the City of Hermosa Beach's net assets by $2,829,000, thereby accounting for 98% of the total growth in the net assets of the City of Hermosa Beach. Net assets increased as a result of both an increase in revenue and a reduction in expenses of 7%. Key elements of this increase are as follows: Changes in Net Assets June 30, 2003 (dollars in thousands) Governmental Business -type Activities Activities Total 2003 2002 2003 2002 2003 2002 Revenues: Program Revenues: Charges For Services $2,603 $2,220 $3,293 $3,014 $5,896 $5,234 Operating Grants and 642 596 --- 642 596 Contributions Capital Grants and Contributions 476 1,678 476 1,678 General Revenues: Property Taxes 5,282 4,730 --- --- 5,282 4,730 Other Taxes 7,675 7,731 498 464 8,173 8,195 Grants and Contributions Not Restricted to Specific Programs 3,112 1,146 --- --- 3,112 1,146 Other 840 1,240 106 125 946 1,365 Total Revenues 20,630 19,341 3,897 3,603 24,527 22,944 Expenses: Legislative and legal 811 824 811 824 General Government 1,101 1,685 1,101 1,685 Public Safety 9,963 9,598 9,963 9,598 Community Development 927 901 927 901 Culture and Recreation 944 901 944 901 Public Works 3,064 4,529 3,064 4,529 Depreciation 1,982 1,760 1,982 1,760 Downtown Enhancement 909 934 909 934 Parking 1,525 1,577 1,525 1,577 Proposition A Transit 303 264 303 264 Proposition C Transit 103 443 103 443 Total Expenses 18,792 20,198 2,840 3,218 21,632 23,416 Increase (Decrease) in Net Assets Before Transfers 1,838 (857) 1,057 385 2,895 (472) Transfers 991 744 (991) (744) 0 0 Increase (Decrease) in Net Assets 2,829 (113) 66 (359) 2,895 (472) Net Assets - 7/1/02 65,296 65,409 8,375 8,734 73,671 74,143 Net Assets - 6/30/03 68,125 65,296 8,441 8,375 76,566 73,671 • Property taxes increased by $552,000 or almost 12%. The largest share of the increase, 10%, is related to secured property taxes, which reflect the substantial growth in property values and turnover in ownership. Secured Taxes have risen 10% on average for the past four years. • The 17% increase in Charges to Services results primarily from higher planning and building fees related to the booming residential improvement market and new taxicab franchise fees. 7 Expenses and Program Revenues - Governmental Activities $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $- Geo ti�°� 0,0 4 ,§e SC`o e Goff C up 0 Expenses GI Program Revenue Revenues by Source - Governmental Activities Revenue by Source - Governmental Activities Capital Grants Operating Grants Charges for Service Miscellaneous Investment Earnings Property Tax Grants/Contribtuions not Restricted to Specific Programs Other Taxes Sales Tax Special Assessments On the expense side, salary increases ranging from 2% to 6% affect all governmental categories except Depreciation. The decrease in expenses occurs due to a decrease in liabilities for accrued compensation resulting from several long term employee retirements and because capital improvement projects for maintenance, which are included in the Public Works category, were significantly higher in 2002 than in 2003. 8 Business -type activities. Business -type activities increased the City of Hermosa Beach's net assets by $66,000, accounting for 2 percent of the total growth in the government's net assets. There were really only two contributing factors to this increase: • Charges for Services increased 9% due to higher revenue from parking fines, parking meters and parking lots. Rates were increased in the first quarter of 2001, with implementation later in the year. • Proposition C Transit expenses were lower due to completion a capital improvement project on one of the City's main streets, Hermosa Avenue. Expenses and Program Revenues - Business -type Activities $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Expenses and Program Revenues - Business -type Activities ri i Downtown Enhancement Parking Prop A Prop C Transit Transit O Expenses O Program Revenue Revenues by Source - Business -type Activities Revenue by Source - Business -type Activities Invesmtment Earnings Miscellaneous Other Taxes Charges for Services 9 Fines and Forfeitures Use of Money and Property Financial Analysis of the Government's Funds As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Hermosa Beach's governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City of Hermosa Beach's financing requirements. In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year. As of the end of the current fiscal year, the City of Hermosa Beach's governmental funds reported combined ending fund balances of $12,656,000, a decrease of $387,000, in comparison with the prior year. Approximately 91 percent of this total amount ($11,515,000) constitutes unreserved fund balance, which is available for spending at the government's discretion. The remainder of fund balance is reserved to indicate that it is not available for new spending because it has already been committed to 1) liquidate contracts and purchase orders of the prior period ($1,138,000), and 2) fund transportation development act projects ($3,000). Six funds qualify as major funds under the GASB 34 reporting criteria: the General Fund, Tyco Fund, Grant Fund, Sewer Fund, Contingency Fund and Capital Improvement Fund. The General Fund is the chief operating fund of the City of Hermosa Beach. At the end of the current fiscal year, the total fund balance was $693,000, with $232,000 reserved for re -appropriations and $461,000 unreserved but designated for certain purposes. Financial policies in effect for 2002-03 dictate that funds left unspent in the General Fund at year end transfer equally to the Contingency Fund, the Capital Improvement Fund and the Insurance Fund. The transfer to each fund was $597,469. Key reasons funds were available at year end are as follows: • Property taxes were higher by 12%, which is offsetting the effects of a decline in sales tax due to the loss of auto dealerships. As mentioned earlier, secured property taxes have average growth of 10% per year for the last four years. • Parking fees and fines were higher, which translated to a higher transfer at year end to the General Fund. • Expenditures were 5% less than budgeted, namely due to the number of vacant positions which equates to salary and benefit savings. As the Contingency Fund serves as the City's "rainy day fund" or reserve for economic uncertainties, a goal amount has been established for the fund balance of 15% of General Fund appropriations. The balance of $2.9 million represents 17% of appropriations. General Fund Budgetary Highlights Differences between the original budget and the final amended budget were negligible for estimated revenue and appropriations. Estimated revenue increased by 1% Transfers in however, increased by 20% due the increase in parking fees and fines mentioned under business -type activities. Any unrestricted retained earnings in the Parking Fund at year end transfer automatically to the General Fund. 10 Differences in appropriations other than Transfers Out equaled $621,000 or about 4%. They are briefly summarized as follows: • $98,000 in increases for legal costs in legislative/legal activities • $156,000 general government and community development software upgrades • $55,000 in increases allocated to the police department (retiring employees payoffs) • $5,000 in increases allocated to the fire department • $17,000 in miscellaneous increases in public works activities • $300,000 in increases for capital outlay for the City Hall remodel and Municipal Pier renovation Transfers out increased due to the year end transfer out to several funds according to adopted financial policies. Proprietary funds. The City of Hermosa Beach's proprietary funds provide the same type of information found in the government -wide financial statements, but in more detail. The Downtown Enhancement Fund and Parking Fund are the major funds according to GASB 34 criteria. Unrestricted net assets of the Downtown Enhancement operation at the end of the year were $730,000, and $50,000 in the Parking Fund, which is for re -appropriations. Other factors concerning the finances of these two funds have already been addressed in the discussion of the City of Hermosa Beach's business -type activities. Capital Asset and Debt Administration Capital assets. The City of Hermosa Beach's investment in capital assets for its governmental and business type activities as of June 30, 2003, amounts to $59,232,000 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, highways, and monuments. The total increase in the City of Hermosa Beach's investment in capital assets for the current fiscal year was 5 percent (a 6 percent increase for governmental activities and a 1 percent decrease for business -type activities). Major capital asset events during the current fiscal year included the following: • Construction began on the renovation of Valley Park; construction in progress as of the close of the fiscal year had reached $1,762,000. • A variety of street and sewer projects (widening and expansion projects for existing streets) began; construction in progress as of the end of the current fiscal year had reached $1,750,000. • On street parking improvements began; construction in progress as of the end of the fiscal year had reached $25,000. • Community Center improvements began; construction in progress as of the end of the fiscal year had reached $10,000. 11 City of Hermosa Beach's Capital Assets (net of depreciation) (dollars in thousands) Governmental Business -type Activities Activities Total 2003 2002 2003 2002 2003 2002 Land $18,052 $18,052 $ 1,573 $ 1,573 $19,625 $19,625 Buildings and structures 2,536 712 5,182 5,300 7,718 6,012 Improvements other than 2,956 3,151 0 0 2,956 3,151 buildings Machinery and 1,220 996 17 22 1,237 1,018 equipment Vehicles 1,651 1,866 1,651 1,866 Infrastructure 22,497 23,178 22,497 23,178 Construction in progress 3,523 1,750 25 3,548 1,750 Total $52,435 $49,705 $6,797 $6,895 $59,232 $56,600 Additional information on the City of Hermosa Beach's capital assets can be found in Note 6 on pages 62-64 of this report. Economic Factors and Next Year's Budgets and Rates • Property tax growth has been particularly strong for the past four years, with an average growth of 10% per year. • Up until 2001-02, sales tax growth had averaged 12% for the past five years. Loss of auto dealerships caused a decline in the ensuing years. The BMW dealership will move at least a portion of its dealership in 2004-05. Offsetting the sales tax drop, transient occupancy taxes have almost doubled in the past five years due to added hotels and a second phase to an existing hotel. • The State's double digit deficit is of concern to all local governments since the State has a history of "raiding" or "borrowing" local funds to balance their budget. This circumstance makes budgeting an uncertainty in any year. • Also looming are increased retirement rates from Ca1PERS, the State retirement fund with which many cities contract for pension benefits. Due to investment losses sustained, rates are expected to be substantially higher for several years. All of these factors were considered in preparing the City of Hermosa Beach's budget for the 2004 fiscal year. A discussion of the factors affecting the City's financial condition may be found in the transmittal letter at the front of this report. Requests for Information This financial report is designed to provide a general overview of the City of Hermosa Beach's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 1315 Valley Drive, Hermosa Beach, CA 90254. 12 BASIC FINANCIAL STATEMENTS 13 This page intentionally left blank. 14 GOVERNMENT -WIDE FINANCIAL STATEMENTS 15 This page intentionally left blank. 16 City of Hermosa Beach Statement of Net Assets June 30, 2003 Primary Government Governmental Business -Type Activities Activities ASSETS Total Current assets: Cash and investments $ 20,302,243 $ 1,968,905 $ 22,271,148 Reimbursable grants receivable 665,880 665,880 Interest receivable on investments 90,071 12,814 102,885 Other accounts receivable 1,200,861 75,089 1,275,950 Notes receivable, due within a year 5,163 5,163 Property taxes receivable 621,478 621,478 Deposits 80,000 80,000 Other assets 111,854 111,854 Total current assets 23,072,387 2,061,971 25,134,358 Noncurrent assets: Notes receivable, due more than a year 156,145 156,145 Capital assets: Non -depreciable 21,575,512 1,597,787 23,173,299 Depreciable, net 30,859,310 5,199,081 36,058,391 Total capital assets 52,434,822 6,796,868 59,231,690 Total noncurrent assets 52,434,822 6,953,013 59,387,835 Total assets 75,507,209 9,014,984 84,522,193 LIABILITIES Current liabilities: Workers' compensation claims payable - within one year 325,000 325,000 General liability claims payable - within one year 250,000 250,000 Accounts payable and accrued liabilities 1,686,188 399,748 2,085,936 Accrued wages and compensated absences 1,325,739 173,388 1,499,127 Refundable deposits 382,269 610 382,879 Unearned revenue 745,136 745,136 Compensated absences, within one year 726,159 726,159 Other liabilities 3,574 3,574 Total current liabilities 5,444,065 573,746 6,017,811 Noncurrent liabilities: Workers' compensation claims payable 1,444,131 1,444,131 General liability claims payable 323,502 323,502 Compensated absences 170,383 170,383 Total noncurrent liabilities 1,938,016 1,938,016 Total liabilities NET ASSETS 7,382,081 573,746 7,955,827 Invested in capital assets, net of related debt 52,434,822 6,796,868 59,231,690 Restricted for: Capital projects 167,409 167,409 Specific projects 357,152 864,024 1,221,176 Total restricted assets 524,561 864,024 1,388,585 Unrestricted net assets (deficit) 15,165,745 780,346 15,946,091 Total net assets $ 68,125,128 $ 8,441,238 $ 76,566,366 See accompanying Notes to Basic Financial Statements. 17 I City of Hermosa Beach Statement of Activities and Changes in Net Assets ' For the year ended June 30, 2003 Program Revenues I Charges Operating Capital Total for Grants and Grants and Program I Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: I Legislative and legal $ 810,589 $ - General government 1,100,565 $ 89,037 $ 22,074 111,111 Public safety 9,962,500 833,755 220,536 $ 33,766 1,088,057 Community development 927,174 768,241 356 12,321 780,918 Culture and recreation 944,267 708,296 708,296 Public works 3,063,912 203,533 399,248 429,846 1,032,627 I Depreciation (unallocated) 1,981,825 - Total governmental activities 18,790,831 2,602,862 642,214 475,933 3,721,009 Business -type activities: Downtown Enhancement 909,137 774,865 774,865 Parking 1,525,371 2,503,330 2,503,330 Proposition "A" Transit 302,907 14,381 14,381 Proposition "C" Transit 103,091 Total business -type activities 2,840,506 3,292,576 - - 774,865 Total primary government $ 21,631,337 $ 5,895,438 $ 642,214 $ 475,933 $ 4,495,874 I General Revenues: Taxes: Property taxes Sale taxes Special assessments Other Total taxes Grants and contributions not restricted to specific programs Investment earnings Miscellaneous Gain (loss) on sale of fixed assets Transfers Total general revenues and transfers Change in net assets Net assets - beginning of year, as restated (Note 13) Net assets - end of year See accompanying Notes to Basic Financial Statements. I 18 Net (Expense) Revenue and Changes in Net Assets I Governmental Business -type Activities Activities Total I$ (810,589) $ (810,589) (989,454) (989,454) I (8,874,443) (146,256) (8,874,443) (146,256) (235,971) (235,971) I (2,031,285) (2,031,285) (1,981,825) (1,981,825) (15,069,822) $ - (15,069,822) (134,272) (134,272) 977,959 977,959 (288,526) (288,526) (103,091) (103,091) 452,070 452,070 (15,069,822) 452,070 (14,617,752) I 5,282,147 5,282,147 I 2,508,346 454,790 2,508,346 454,790 4,711,422 498,276 5,209,698 I 12,956,705 3,111,569 498,276 13,454,981 3,111,569 439,050 96,117 535,167 I 425,201 (24,543) 10,812 436,013 (24,543) 990,593 (990,593) I 17,898,575 (385,388) 17,513,187 2,828,753 66,682 2,895,435 65,296,375 8,374,556 73,670,931 I$ 68,125,128 $ 8,441,238 $ 76,566,366 t 19 This page intentionally left blank. 20 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 21 This page intentionally left blank. 22 GOVERNMENTAL FUND FINANCIAL STATEMENTS 23 This page intentionally left blank. 24 GOVERNMENTAL FUND FINANCIAL STATEMENTS Governmental Funds of the City are outlined below: The General Fund - This fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works. Tyco Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity. Grants Fund Special Revenue Fund - This fund is used to account for State and Federal grants for specific projects. Sewer Fund Special Revenue Fund - This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Contingency Special Revenue Fund - "Rainy day" funds set aside for unforeseen emergencies, unexpected economic events, etc. City Council adopted goal is 15% of appropriations. Capital Improvement Special Revenue Fund - Funds set aside for Capital Improvement Projects. Other Governmental Funds - Other Governmental Funds is the aggregate of all the non -major governmental funds. 25 City of Hermosa Beach Balance Sheet Governmental Funds June 30, 2003 ASSETS Cash and investments (Note 2) Reimbursable grants receivable Interest receivable on investments Other accounts receivable Property taxes receivable Due from other funds (Note 5) Other assets Total assets and other debits LIABILITIES AND FUND BALANCES Liabilities: Accounts payable and accrued liabilities Accrued wages and compensated absences Due to other funds (Note 5) Refundable deposits Deferred revenue Other liabilities Total liabilities Fund Balances: Reserved for: Re -appropriations Bike paths Strand walkways Beverage Recycling Grant State Homeland Security Grant Unreserved, designated for: Trash containers Teen Program Donation/Mervyn's Affordable housing Community Res. Special Events Pier phase III Justice and treasury department Unreserved, undesignated Total fund balances Total liabilities and fund balances Major Funds General 1 1 1 Capital 1 Tyco Grants Sewer Contingency Improvement Special Special Special Special Special Revenue Revenue Revenue Revenue Revenue $ 1,575,563 $ 1,901,339 $ 2,384,949 $ 2,927,875 $ 2,425,118 $ 550,449 19,560 11,667 18,684 14,305 11,114 1,114,629 3,382 611,853 677,513 108,000 101,398 $ 3,423,003 $ 1,913,006 $ 550,449 $ 3,084,528 $ 2,942,180 $ 2,544,232 1 $ 405,256 $ 4,825 $ 11,053 $ 884,537 $ 126,996 1,203,577 26,415 3,348 1 528,732 382,269 735,511 3,574 2,730,187 4,825 539,785 910,952 $ 130,344 1 231,701 5,400 603,683 160,438 1 6,102 4,562 1 3,900 10,000 111,831 4,108 331,000 1 276 1,902,781 1,569,893 2,942,180 2,253,450 692,816 1,908,181 10,664 2,173,576 2,942,180 2,413,888 $ 3,423,003 $ 1,913,006 $ 550,449 $ 3,084,528 $ 2,942,180 $ 2,544,232 See accompanying Notes to Basic Financial Statements. 26 1 1 1 1 1 Other Governmental Funds Total 1 $ 2,759,158 $ 13,974,002 115,431 665,880 14,741 90,071 I76,100 1,194,111 9,625 621,478 785,513 I101,398 $ 2,975,055 $ 17,432,453 1 $ 163,284 $ 1,595,951 30,522 1,263,862 256,781 785,513 382,269 9,625 745,136 3,574 460,212 4,776,305 1 126,031 1,127,253 655 655 2,935 2,935 6,102 4,562 3,900 10,000 111,831 4,108 I 331,000 20,289 20,289 2,364,933 11,033,513 2,514,843 12,656,148 $ 2,975,055 $ 17,432,453 1 27 This page intentionally left blank 28 City of Hermosa Beach Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets June 30, 2003 Total Fund Balances - Total Governmental Funds Amounts reported for governmental activities in the Statement of Net Assets were reported differently because: Capital assets used in governmental activities were not current financial resources. Therefore, they were not reported in the Governmental Funds Balance Sheet. Except for the Internal Service Funds reported below, the capital assets were adjusted as Governmental Internal Service follow: Funds Funds Non -depreciable Depreciable, net Total capital assets Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in governmental activities in the Government -Wide Statement of Net Assets. Insurance Fund $ 21,199,818 $ 28,807,798 375,694 2,051,512 $ 12,656,148 21,575,512 30,859,310 $ 50,007,616 $ 2,427,206 52,434,822 4,086,575 Equipment Replacement Fund 2,186,758 Total internal service funds 6,273,333 Long-term liabilities were not due and payable in the current period. Therefore, they Governmental Internal Service were not reported in the Governmental Funds Balance Sheet. Funds Funds Long-term liabilities - due within one year Long-term liabilities - due in more than one year Compensated absences payable Total long-term liabilities Net Assets of Governmental Activities See accompanying Notes to Basic Financial Statements. 29 $ (575,000) (575,000) (1,767,633) (1,767,633) $ (896,542) (896,542) $ (896,542) $ (2,342,633) (3,239,175) $ 68,125,128 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances I Governmental Funds For the year ended June 30, 2003 Major Funds Capital Tyco Grants Sewer Contingency Improvement Special Special Special Special Special I General Revenue Revenue Revenue Revenue Revenue REVENUES: Property taxes $ 5,282,147 1 Other taxes 7,219,767 Licenses and permits 571,682 Fines and forfeitures 276,786 Use of money and property 285,382 $ 1,900,000 Intergovernmental 1,195,416 $ 372,098 $ 11,841 I Charges for services 1,165,490 30,773 Miscellaneous 434,362 4,390 958 $ 3,670 Interest earned on investments 80,558 41,281 106,211 $ 72,624 60,039 I Total revenues 16,511,590 1,941,281 376,488 149,783 72,624 63,709 EXPENDITURES: I Current: Legislative and legal 832,157 General government 1,196,193 1 Public safety 9,916,705 4,390 Community development 939,179 356 Culture and recreation 966,621 Public works 1,967,115 7,168 535,236 Capital outlay 202,142 33,100 356,362 1,661,132 788,724 Total expenditures 16,020,112 33,100 368,276 2,196,368 788,724 i REVENUES OVER (UNDER) EXPENDITURES 491,478 1,908,181 8,212 (2,046,585) 72,624 (725,015) 1 OTHER FINANCING SOURCES (USES): Transfers in 1,583,299 700,000 597,469 1,077,595 ' Transfers out (2,902,107) (87) Total other financing sources (uses) (1,318,808) (87) 700,000 597,469 1,077,595 Net change in fund balances (827,330) 1,908,181 8,125 (1,346,585) 670,093 352,580 FUND BALANCES: Beginning of year, as restated (Note 13) 1,520,146 2,539 3,520,161 2,272,087 2,061,308 End of year $ 692,816 $ 1,908,181 $ 10,664 $ 2,173,576 $ 2,942,180 $ 2,413,888 See accompanying Notes to Basic Financial Statements. I 30 I I I I Other I Governmental Funds Total 1 $ 454,790 $ 5,736,937 103,500 7,323,267 I 571,682 1,548 278,334 2,185,382 I 596,577 58,654 2,175,932 1,254,917 201,955 645,335 1 89,403 450,116 1,506,427 20,621,902 1 832,157 1 49,113 1,245,306 119,523 10,040,618 12,321 951,856 I 966,621 572,577 3,082,096 1,239,684 4,281,144 I1,993,218 21,399,798 1 (486,791) (777,896) 57,699 4,016,062 (723,474) (3,625,668) 1 (665,775) 390,394 (1,152,566) (387,502) 1 3,667,409 13,043,650 I$ 2,514,843 $ 12,656,148 I 31 City of Hermosa Beach Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government -Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2003 Net Change in Fund Balances - Total Governmental Funds $ (387,502) Governmental Activities in the Statement of Activities were reported differently because: Governmental Funds report capital outlay as expenditures. However, in the Government -Wide Statement of Activities and Changes in Net Assets, the cost of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount of capital assets recorded in the current period. Depreciation expense on capital assets is reported in the Govemment-Wide Statement of Activities and Changes in Net Assets, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in governmental funds. The net effect of sale involving various capital assets is to decrease net assets. Long-term compensated absences were reported in the Government -Wide Statement of Activities and Changes in Net Assets, but they did not require the use of current financial resources. Therefore, long-term compensated absences were not reported as expenditures in governmental funds. Intemal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported with Governmental Activities. Change in Net Assets of Governmental Activities See accompanying Notes to Basic Financial Statements. 32 4,293,285 (1,450,013) (43,500) 96,146 320,337 $ 2,828,753 PROPRIETARY FUND FINANCIAL STATEMENTS 33 This page intentionally left blank. 34 PROPRIETARY FUND FINANCIAL STATEMENTS Downtown Enhancement Fund - All parking lot revenues are deposited to the Downtown Enhancement Fund in order to promote business in general and improve the appearance of the downtown area. Parking Fund - All meter, fine and parking permit revenues are deposited to the Parking Fund in order to finance parking operations and capital improvements. Other Enterprise Funds - Other Enterprise Funds is the aggregate of all the non -major proprietary funds. 35 City of Hermosa Beach Statement of Net Assets ' Proprietary Funds For the Year Ended June 30, 2003 ASSETS Governmental Major Enterprise Funds Other Total Activities Downtown Enterprise Enterprise Internal Enhancement Parking Funds Funds Service Funds I Current assets: Cash and investments $ 798,069 $ 297,607 $ 873,229 $ 1,968,905 $ 6,328,241 I Interest receivable on investments 4,869 2,617 5,328 12,814 Other accounts receivable 9,437 16,215 49,437 75,089 6,750 Notes receivable, due within a year 5,163 5,163 I Deposits 80,000 Other assets 10,456 Total current assets 817,538 316,439 927,994 2,061,971 6,425,447 Noncurrent assets: Notes receivable, due in more than a year 156,145 156,145 Property and equipment, net of accumulated depreciation 6,605,325 191,543 6,796,868 2,427,206 Total assets 7,579,008 507,982 927,994 9,014,984 8,852,653 LIABILITIES Current liabilities: I Current portion of long-term liabilities 575,000 Accounts payable 236,502 100,895 62,351 399,748 90,237 Accrued wages and compensated absences 6,977 164,792 1,619 173,388 61,877 Refundable deposit 610 610 Total current liabilities 243,479 266,297 63,970 573,746 727,114 i Long-term liabilities: Workers' compensation claims payable 1,769,131 I General liability claims payable 573,502 Less current portion above (575,000) Total long-term liabilities - 1,767,633 Total liabilities NET ASSETS 243,479 266,297 63,970 573,746 2,494,747 Investment in capital assets, net of related debt 6,605,325 191,543 6,796,868 2,427,206 Restricted for special projects 864,024 864,024 Unrestricted 730,204 50,142 780,346 3,930,700 Total net assets $ 7,335,529 $ 241,685 $ 864,024 $ 8,441,238 $ 6,357,906 I See accompanying Notes to Basic Financial Statements 1 City of Hermosa Beach 111 Statement of Revenues, Expenses and Changes in Net Assets Proprietary Funds IFor the year ended June 30, 2003 IGovernmental Major Enterprise Funds Other Total Activities Downtown Enterprise Enterprise Internal IEnhancement Parking Funds Funds Service Funds OPERATING REVENUES: I Other taxes $ 498,276 $ 498,276 Fines and forfeitures $ 1,099,447 1,099,447 Use of money and property $ 37,529 37,529 I Charges for services 774,865 1,403,883 14,381 2,193,129 $ 2,334,658 Miscellaneous 9,901 205 706 10,812 5,180 Total operating revenues 822,295 2,503,535 513,363 3,839,193 2,339,838 IOPERATING EXPENSES: Salaries and wages 40,742 1,121,427 31,676 1,193,845 343,835 I Contractor services 661,156 71,475 374,133 1,106,764 416,830 563,776 Supplies 89,581 327,060 189 157,999 Claims expense - 1,072,867 I Depreciation 117,658 5,409 123,067 531,812 Total operating expenses 909,137 1,525,371 405,998 2,840,506 2,670,289 IOPERATING INCOME (LOSS) (86,842) 978,164 107,365 998,687 (330,451) NONOPERATING REVENUES (EXPENSES): I Interest earned on investments 21,837 9,737 27,014 58,588 Proceeds on sale of assets 18,957 Total nonoperating revenues (expenses) 21,837 9,737 27,014 58,588 18,957 IINCOME (LOSS) BEFORE TRANSFERS (65,005) 987,901 134,379 1,057,275 (311,494) I TRANSFERS: Contributions of capital assets from government 31,632 Transfers in 1,350 1,350 657,616 I Transfers out (4,834) (987,109) (991,943) (57,417) Total operating transfers (4,834) (985,759) (990,593) 631,831 Changes in net assets (69,839) 2,142 134,379 66,682 320,337 NET ASSETS: Beginning of the year 7,405,368 239,543 729,645 8,374,556 6,037,569 End of the year $ 7,335,529 $ 241,685 $ 864,024 $ 8,441,238 $ 6,357,906 I See accompanying Notes to Basic Financial Statements. 37 City of Hermosa Beach Statement of Cash Flows Proprietary Funds For the year ended June 30, 2003 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers/other funds Cash payments to suppliers for goods and services Cash payments to employees for services Insurance premiums and settlements Other operating revenues Net cash provided by (used for) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in Transfers out Net cash provided by (used for) noncapital financing activities CASH FLOWS CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds on sale of capital assets Acquisition of capital assets Net cash provided by (used for) capital and related financing activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year Ending of year RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in operating assets and liabilities: Interest receivable on investments Other accounts receivable Notes receivable Other assets Worker's compensation claims payable General liability claims payable Accounts payable Accrued wages and compensated absences Refundable deposits Total adjustments Net cash provided (used) by operating activities See accompanying Notes to Basic Financial Statements. 38 Major Enterprise Funds Downtown Enhancement Other Total Enterprise Enterprise Parking Funds Funds Governmental Activities Internal Service Funds $ 822,571 $ 2,506,800 $ 506,323 $ 3,835,694 $ 2,331,945 (699,900) (354,275) (404,618) (1,458,793) (760,524) (41,450) (1,108,799) (31,649) (1,181,898) (347,449) (1,043,445) 9,901 205 706 10,812 5,180 91,122 1,043,931 70,762 1,205,815 185,707 1,350 (4,834) (987,109) 1,350 (991,943) I I 657,616 (57,417) 600,199 I I 1 I (4,834) (985,759) (990,593) (25,047) (25,047) 18,957 (430,367) (25,047) (25,047) (411,410) 21,837 9,737 27,014 58,588 21,837 9,737 27,014 58,588 83,078 67,909 97,776 248,763 714,991 229,698 775,453 1,720,142 374,496 5,953,745 $ 798,069 $ 297,607 $ 873,229 $ 1,968,905 $ 6,328,241 $ (86,842) $ 978,164 $ 117,658 2,447 2,908 4,822 50,837 (708) 5,409 1,325 1,535 44,260 12,628 610 107,365 $ 998,687 2,401 (8,735) (30,296) 27 123,067 6,173 (4,292) 4,822 64,801 11,947 610 (330,451) 531,812 (731) (1,982) (211,698) 241,120 (38,749) (3,614) 177,964 65,767 (36,603) 207,128 516,158 $ 91,122 $ 1,043,931 $ 70,762 $ 1,205,815 $ 185,707 FIDUCIARY FUND FINANCIAL STATEMENTS 39 This page intentionally left blank. 40 FIDUCIARY FUND FINANCIAL STATEMENTS Agency Fund are used to account for assets held by the City in the capacity of agent for individuals. Agency Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. 41 City of Hermosa Beach Statement of Fiduciary Net Assets Agency Funds June 30, 2003 ASSETS Cash and investments Interest receivable Other accounts receivable Total assets LIABILITIES Assessment: Installment account Total liabilities See accompanying Notes to Basic Financial Statements. 42 1 1 1 1 Agency 1 Funds $ 224,954 1 1,376 5,476 1 $ 231,806 1 $ 231,806 I $ 231,806 1 1 1 1 1 1 1 1 1 1 City of Hermosa Beach Index to Notes to Basic Financial Statements For the year ended June 30, 2003 Page Note 1- Summary of Significant Accounting Policies Financial Reporting Entity 45 Basis of Accounting and Measurement Focus 46 Use of Restricted/Unrestricted Net Assets 48 Cash and Investments 49 Property Taxes Receivables 49 Prepaid Items 49 Interfund Transactions 49 Capital Assets 50 Claims Payable 51 Compensated Absences 51 Deferred Referred 51 Long -Term Debt 51 Net Assets 52 Fund Balance -Reservation and Designations 52 Use of Estimates 52 Implementation of New GASB Pronouncements 53 Note 2 - Cash and Investments Cash Deposits 53 Investments 54 Credit Risk 55 Summary of Cash and Investments 56 Summary of Investments to Maturity 56 Note 3 - Receivables Accounts 57 Property Taxes 58 Interest Receivable 58 Reimbursable Grant Receivable 59 Notes Receivable 59 Note 4 - Lease Revenue 60 Note 5 - Interfund Transactions Government -Wide Financial Statements 61 Fund Financial Statements 61 43 City of Hermosa Beach Index to Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 Page Note 6 - Capital Assets Government -Wide Financial Statements 62 Fund Financial Statements 64 Note 7 - Long -Term Debt Long -Term Debt with City Commitment 65 Long -Term Debt without City Commitment 65 Note 8 - Other Required Fund Disclosures Deficit Fund Balance 67 Excess of Expenditures Over Appropriations 67 Note 9 - Risk Management 67 Note 10 - Retirement Plans Public Employee Retirement System 69 Other Post -Employment Benefits 71 Note 11- Commitments and Contingencies Commitments 73 Contingencies 73 Note 12 - Subsequent Events 74 Note 13 - Prior Period Adjustments Government -Wide Financial Statements 74 Fund Financial Statements 75 44 City of Hermosa Beach Notes to Basic Financial Statements For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The basic financial statements of the City of Hermosa Beach, California, (City) have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to governmental agencies. The Governmental Accounting Standards Boards (GASB) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The more significant of the City's accounting policies are described below. A. Financial Reporting Entity The City of Hermosa Beach was incorporated on January 14, 1907, under the general laws of the State of California. The City operates under a Council -Manager form of government and provides the following services: public safety (police, crossing guards and fire), maintenance and construction of public improvements, cultural, recreation, community development (planning and zoning), and general administrative services. As required by GAAP, the basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. Blended component units, although legally separate entities, are in substance, part of the City's operations and data from these units are combined with data of the City. Discretely presented component units, on the other hand, are reported in a separate column in the combined basic financial statements to emphasize their legal separateness from the City. Each blended component unit has a June 30 year-end. The City had no discretely presented component units. The following entities are reported as blended component units: Hermosa Beach Street Lighting and Landscaping District This fund is used to account for the Lighting and Landscaping Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679. Lower Pier Avenue Assessment District Improvement Fund This fund is used to account for the funds of the assessment district, which was created pursuant to Street and Highway Code 10000 for improvements in the downtown Pier Plaza. Myrtle Underground Utility District Improvement Fund This fund is used to account for the funds of the electric underground assessment district, which was created pursuant to Street and Highway Code 10000. Loma Underground Utility District Improvement Fund This fund is used to account for the funds of the electric underground assessment district, which was created pursuant to Street and Highway Code 10000. 45 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for in a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purpose for which they are to be spent and the means by which spending activities are controlled. Government - Wide Financial Statements These statements are presented for the first time as required by GASB Statement No. 34. The City Government -Wide Financial Statements include a Statement of Net Assets and a Statement of Activities and Changes in Net Assets. These statements present summaries of Governmental and Business -Type Activities for the City, the primary government, accompanied by a total column. Fiduciary activities of the City are not included in these statements. The basic financial statements are presented on an "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying Statement of Net Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. The types of transactions reported as program revenues for the City are reported in three categories: 1) charges for services, 2) operating grants and contributions, and 3) capital grants and contributions. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to interfund activities, payables and receivables. All internal balances in the Statement of Net Assets have been eliminated except those representing balances between the governmental activities and the business - type activities, which are presented as internal balances and eliminated in the total primary government column. In the Statement of Activities, internal service fund transactions have been eliminated because their expenses are reported a second time as expenditures/expenses in the funds that are billed for the goods or services they provide. However, transactions between governmental and business -type activities have not been eliminated. The following interfund activities have been eliminated: ➢ Due to/from other funds - short-term loans within the primary government ➢ Advances to/from other funds - long-term loans within the primary government ➢ Operating transfers in/out - flows of assets between funds without the requirement for repayment The City applies all applicable GASB pronouncements (including all NCGA Statements and Interpretations currently in effect) as well as the following pronouncements issued on or before November 30, 1989, to the business -type activities, unless those pronouncements conflict with or contradict GASB pronouncements: Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions, and Accounting Research Bulletins (ARB) of the committee on Accounting Procedure. The City applies all applicable FASB Statements and Interpretations issued after November 30, 1989, except those that conflict with or contradict GASB pronouncements. 46 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Governmental Fund Financial Statements These statements are presented for the first time as required by GASB Statement No. 34. Governmental fund financial statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non -major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these statements to the net assets presented in the government -wide financial statements. Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets or liabilities are at least 10% of corresponding totals for all governmental or enterprise funds and at least 5% of the aggregate amounts for all governmental and enterprise funds for the same item. The City has presented all major funds that met the applicable criteria. All governmental funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheet. The Statement of Revenues, Expenditures and Changes in Fund Balances present increase (revenue and other financing sources) and decrease (expenditures and other financing uses) in net current assets. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property tax, sales tax, intergovernmental revenues and other taxes. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Deferred revenues arise when potential revenues do not meet both the "measurable" and "available" criteria for recognition in the current period. Deferred revenues also arise when the government receives resources before it has a legal claim to them, as when grant monies are received prior to incurring qualifying expenditures. In subsequent periods when both revenue recognition criteria are met or when the government has a legal claim to the resources, the deferred revenue is removed from the balance sheet and revenue is recognized. The Reconciliation of the Fund Financial Statements to the Government -Wide Financial Statements is provided to explain the differences created by the integrated approach of GASB Statement No. 34 and is located after the governmental funds balance sheet in the fund financial statements. Proprietary Fund Financial Statements Proprietary Fund Financial Statements include a Statement of Net Assets, a Statement of Revenues, Expenses and Changes in Fund Net Assets, and a Statement of Cash Flows for each major proprietary fund. A separate column representing internal service funds is also presented in these statements. However, internal service balances and activities have been combined with the governmental activities in the Government -Wide Financial Statements. 47 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued B. Basis of Accounting and Measurement Focus, Continued Proprietary Fund Financial Statements, Continued Proprietary funds are accounted for using the "economic resources" measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or non-current) are included on the Statement of Net Assets. The Statement of Revenues, Expenses and Changes in Fund Net Assets present increases (revenues) and decreases (expenses) in total net assets. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. In these funds, receivables have been recorded as revenue and provisions have been made for uncollectible amounts if applicable. In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Government Entities that Use Proprietary Fund Accounting, the City applies all GASB pronouncements currently in effect as well as Financial Accounting Standard Board Statements and Interpretations, Accounting Principles Board Opinions and Accounting Research Bulletins of the Committee on Accounting Procedure issued on or before November 30, 1989. Operating revenues in the proprietary funds are those revenues that are generated from the primary operations of the fund. All other revenues are reported as non-operating revenues. Operating expenses are those expenses that are essential to the primary operations of the fund. All other expenses are reported as non-operating expenses. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Assets. The City's Fiduciary funds represent Agency Funds, which are custodial in nature (asset equal liabilities) and do not involve measurement of results of operations. The Agency funds are accounted for on a spending or "current financial resources" measurement focus and the modified accrual basis of accounting as are the governmental funds explained above. Fiduciary fund types are accounted for according to the nature of the fund. For the City of Hermosa Beach, funds held as fiduciary funds represent assets and liabilities of electric undergrounding districts and a downtown improvement district. C. Use of Restricted/Unrestricted Net Assets When an expense is incurred for purposes for which both restricted and unrestricted net assets are available, the City's policy is to apply restricted net assets first. D. Cash and Investments The City pools cash resources of its various funds to facilitate cash management. Cash in excess of current requirements is invested and reported as investments. It is the City's intent to hold investments until maturity. However, the City may, in response to market conditions, sell investments prior to maturity in order to improve the quality, liquidity or yield of the portfolio. Interest earnings are apportioned among funds based on ending accounting period cash and investment balances. 48 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued D. Cash and Investments, Continued The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and highly liquid investments with original maturities of three months or less at the time of acquisition. In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, highly liquid market investments with maturities of one year or less at time of purchase are stated at amortized cost. All other investments are stated at fair value. Market value is used as fair value for those securities for which market quotations are readily available. The City participates in the Local Agency Investment Fund (LAIF), an investment pool managed by the State of California. LAIF has invested a portion of the pool funds in Structured Notes and Asset -Backed Securities. LAIF's investments are subject to credit risk with the full faith and credit of the State of California collateralizing these investments. In addition, these Structured Notes and Asset -Backed Securities are subject to market risk as a result of changes in interest rates. E. Property Tax Receivable Property taxes attach as an enforceable lien on property as of July 1 each year. Taxes are levied on January 1 and are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (County) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized when received in cash except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes available taxes or those collected within 60 days as revenue at June 30. The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed valuation no more than 2% per year. The City receives a share of this basic levy, proportionate to what it received during the years 1976 to 1978. F. Prepaid Items Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items. G. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances to/from other funds" (i.e., the noncurrent portion of interfund loans)." Any residual balances outstanding between the governmental activities and business -type activities are reported in the governmental -wide financial statements as "internal balances." 49 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued H. Capital Assets Capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are reported in the applicable governmental or business -type activities in the Government -Wide Financial Statements. Capital assets are valued at historical cost or estimated historical cost if actual historical cost was not available. Donated fixed assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $1,000 and infrastructure at $100,000. Depreciation is recorded on a straight-line basis over estimated useful lives of the assets as follows: Buildings 50 years Improvements other than buildings 20 years Machinery and equipment 3-20 years Infrastructure 15-50 years In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34 which requires the inclusion of infrastructure capital assets in local governments' basic financial statements. In accordance with GASB Statement No. 34, the City has included all infrastructures as of June 30, 2003 into the 2002-03 Basic Financial Statements. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewers and storm drains, and monuments. Each major infrastructure system can be divided into subsystems. For example the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights, landscaping and land. These subsystems were not delineated in the basic financial statements. The appropriate operating department maintains information regarding the subsystems. Interest accrued during capital assets construction, if any, is capitalized for the business -type and proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the Basic Approach as defined by GASB Statement No. 34 for infrastructure reporting. The City commissioned an appraisal of City owned infrastructure and property as of June 30, 2003. This appraisal determined the original cost, which is defined as the actual cost to acquire new property in accordance with market prices at the time of first construction/acquisition. Original costs were developed in one of three ways: (1) historical records; (2) standard unit costs appropriate for the construction/acquisition date; or (3) present cost indexed by a reciprocal factor of the price increase from the construction/ acquisition date to the current date. The accumulated depreciation, defined as the total depreciation from the date of construction/acquisition to the current date on a straight line, unrecovered cost method was computed using industry- accepted life expectancies for each infrastructure subsystem. The book value was then computed by deducting the accumulated depreciation from the original cost. 50 1 t t 1 t i City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued I. Claims Payable I The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers' compensation claims. The estimated liability for workers' compensation claims and general liability claims includes "incurred but not reported" (IBNR) claims. There is no fixed payment schedule to pay these liabilities. Compensated Absences City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and a portion of sick pay when an employee retires or terminates. This amount is included as a liability in the governmental activities of the Government -Wide financial statements. As mentioned under "Financial Policies," the City goal is to accumulate funding in the Compensated Absences Fund for 50% of the accrued liability for compensated absences. K. Deferred Revenue In the Government -Wide Financial Statements, deferred revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as deferred revenues in the Government -Wide Financial Statements are long-term loans receivable and prepaid charges for services. In the Fund Financial Statements, deferred revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records deferred revenue for transactions for which revenues have not been earned, or for which funds are not available to meet current financial obligations. Typical transactions for which deferred revenue is recorded are grants received but not yet earned or available. L. Long -Term Debt Government -Wide Financial Statements The City has no long-term debt. Other long-term obligations are reported as liabilities in the appropriate activities. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. 51 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued L. Long -Term Debt, Continued Fund Financial Statements The fund financial statements do not present long-term debt but are shown in the Reconciliation of the Governmental Funds Balance Sheet to the Government -Wide Statement of Net Assets located after the governmental funds balance sheet in the fund financial statements. Bond premiums and discounts, as well as issuance costs, are recognized during the current period. Bond proceeds are reported as other financing sources net of the applicable premium or discount. Issuance costs, whether or not withheld from the actual net proceeds received, are reported as debt service expenditures. The City has issued no bonds applicable to the above. M. Net Assets Government -Wide Financial Statements In the government -wide financial statements, net assets are reported in one of three categories: Invested in Capital Assets, Net of Related Debt - This amount consists of capital assets net of accumulated depreciation and reduced by outstanding debt that is attributed to the acquisition, construction, or improvement of the assets. Restricted Net Assets - This amount is restricted by external creditors, grantors, contributors, or laws or regulations of other governments. Unrestricted Net Assets - This amount represents remaining net assets that do not meet the definition of "invested in capital assets, net of related debt" or "restricted net assets." N. Fund Balances - Reservations and Designations In the fund financial statements, governmental funds report reservations of fund balances for amounts that are not available for appropriation or are legally restricted by outside parties for use for a specific purpose. Designations of fund balance represent tentative management plans that are subject to change. O. Use of Estimates The preparation of the basic financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities. In addition, estimates affect the reported amount of expenses. Actual results could differ from these estimates and assumptions. 52 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, Continued P. Implementation of New GASB Pronouncements In the fiscal year 2003, the City adopted new accounting standards in order to conform to the following Governmental Accounting Standards Board Statements: ➢ Statement No. 34, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments ➢ Statement No. 37, Basic Financial Statements and Management's Discussion and Analysis for State and Local Governments: Omnibus ➢ Statement No. 38, Certain Financial Statement Note Disclosures GASB Statement No. 34 is a new financial reporting requirement for State and Local Governments in the United States. The City has implemented this pronouncement and has restructured much of the information that it has presented in the past. The main goal according to GASB Statement No. 34, is to make the reports more comprehensive and easier to understand and use. GASB Statement No. 37 addresses selected issues and amends GASB Statements No. 21, Accounting for Escheat Property, and No. 34, Basic Financial Statement and Management's Discussion and Analysis for State and Local Governments. These Statements make selective changes including accounting for Escheat Property, Management's Discussion and Analysis, Capitalization of Construction Period Interest, Modified Approach for Reporting Infrastructure, Program Revenues and Major Fund Criteria. GASB Statement No. 38 establishes and modifies disclosure requirements related to Summary of Significant Accounting Policies, actions taken to address violations of significant finance -related legal and contractual provisions, debt and lease obligations, short-term debt, disaggregation of receivable and payable balances, and interfund balances and transfers. 2. CASH AND INVESTMENTS The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. This pooled cash is invested by the City Treasurer to enhance earnings. The pooled interest earned is allocated to the fund based on cash and investment balances in these funds at the end of each accounting period. A. Cash Deposits The carrying amounts of the City's cash deposits were $262,667 at June 30, 2003. Bank balances at June 30, 2003, were $550,502 which were fully insured and collateralized with securities held by the pledging financial institutions in the City's name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City's cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City's name. 53 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 2. CASH AND INVESTMENTS, Continued A. Cash Deposits, Continued The market value of pledged securities must equal at least 110% of the City's cash deposits. California law also allows institutions to secure city deposits by pledging first trust deed mortgage notes having a value of 150% of the City's total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $100,000 by the Federal Deposit Insurance Corporation. The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period -end cash and investment balances. Interest is not allocated to the Compensated Absences Fund, funds created to advance costs for various projects, reimbursable grant funds or internal service funds. Interest income from cash and investments with fiscal agents is credited directly to the related fund. B. Investments Under the provisions of the City's investment policy, and in accordance with California Government Code, the investments below were authorized. The City's policy is more restrictive than the State's by design. ➢ Securities of the U.S. Government, or its agencies ➢ Banker's acceptances ➢ Time Certificates of Deposits ➢ Negotiable certificates of Deposit ➢ California Local Agency Investment Fund ➢ Corporate Medium -Term Notes The City's investments with the Local Agency Investment Fund (LAIF), a State of California investment pool, at June 30, 2003, included a portion of the pool funds invested in Structured Notes and Asset - Backed Securities. These investments included the following: Structured Notes are debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset -Backed Securities, the bulk of which are mortgage-backed securities, entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (such as CMO's) or credit card receivables. As of June 30, 2003, the City had $20,681,244 invested in LAIF, which had invested 2.327% of the pool investment funds in Structured Notes and Asset -Backed Securities. The City valued its investments in LAIF as of June 30, 2003, by multiplying its account balance with LAIF by a fair value factor determined by LAIF. This fair value factor was determined by dividing all LAIF participants' total aggregate fair value by total aggregate amortized cost resulting in a factor of 1.002846280. 54 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 2. CASH AND INVESTMENTS, Continued B. Investments, Continued In accordance with GASB Statement No. 31, Accounting and Financial Reporting for Certain Investments and for External Investment Pools, requires that the City's investments be carried at fair market value instead of cost. Accordingly, the City adjusts the carrying value of its investments to reflect their fair value at each fiscal year-end and the effects of these adjustments are included in income for that fiscal year. Changes in value in the fiscal year ended June 30, 2003, amounted to an unrealized increase of $1,059. C. Credit Risk Governmental Accounting Standards Board Statement No. 3 requires that deposits and investments be classified by credit risk. Classification of deposits and investments by credit risk: Deposits Category 1 - Insured or collateralized with securities held by the entity or by its agent in the entity's name. Category 2 - Collateralized with securities held by the pledging financial institution's trust department or agent in the entity's name. Category 3 - Deposits which are uninsured or uncollateralized. Investments Category 1 - Insured or registered or securities held by the entity or its agent in the entity's name. Category 2 - Uninsured and unregistered with securities held by the counterparty's trust department or agent in the entity's name. Category 3 - Uninsured and unregistered with securities held by the counterparty, or by its trust department or agent, but not in the entity's name. Investments Not Subject to Categorization - Investments in the California Local Agency Investment Fund (LAIF) are not categorized, as GASB Statement No. 3 does not require categorization of investment pools managed by another government. Certain fiscal agent investments, if applicable, are not categorized because the underlying assets are open-ended mutual funds. Guaranteed investment contracts, if applicable, are not categorized because they are direct contractual investments and are not securities. All such investments are not required to be categorized under interpretive guidelines issued by the GASB. 55 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 2. CASH AND INVESTMENTS, Continued D. Summary of Cash and Investments The following is a summary of cash and investment at June 30, 2003: Government -Wide Statement of Net Assets Cash and Investments Governmental Business -Type Activities Activities Total Funds Financial Fiduciary Funds Statement of Net Assets Total 20,302,243 $ 1,968,905 $ 22,271,148 $ 224,954 $ 22,496,102 Cash (deposits) and investments were categorized as follows at June 30, 2003: Category 1 2 Uncategorized Fair Value City Treasury: Cash deposits: Demand accounts $ 113,000 $ 437,502 $ 550,502 Less items in transit (287,835) Total cash deposits 113,000 437,502 $ - 262,667 Investments: Local Agency Investment Fund U.S. government notes 1,552,191 Total investments 1,552,191 20,681,244 20,681,244 1,552,191 20,681,244 22,233,435 Total cash and investments $ 1,665,191 $ 437,502 $ 20,681,244 $ 22,496,102 At June 30, 2003, the City had no category 3 investments. E. Summary of Investments to Maturity Investments held in the City Treasury grouped by maturity date at June 30, 2003, are shown below: Maturity Fair Value Current to one year $ 21,714,994 One to two years 518,441 Total $ 22,233,435 56 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 3. RECEIVABLES Government -Wide Financial Statements At June 30, 2003, the Government -Wide Financial Statements show the following miscellaneous receivables net of allowances for uncollectible amounts if any: Government -Wide Statement of Net Assets Funds Financial Governmental Business -Type Activities Activities Total Fiduciary Funds Statement of Net Assets Total Accounts $ 1,200,861 $ 75,089 $ 1,275,950 $ 5,476 $ 1,281,426 Taxes 621,478 621,478 621,478 Interest 90,071 12,814 102,885 1,376 104,261 Grants 665,880 665,880 665,880 Notes 161,308 161,308 161,308 Total $ 2,578,290 $ 249,211 $ 2,827,501 $ 6,852 $ 2,834,353 Governmental Activities accounts receivables includes the Internal Service Funds amount of $6,750. Fund Financial Statements At June 30, 2003, the Fund Financial Statements show the following receivables: A. Accounts Receivable Accounts receivable consisted of amounts accrued in the ordinary course of operations. The total amount of accounts receivable for each major and non -major fund in the aggregate as of June 30, 2003, were as follows: Governmental Funds: General Fund $ 1,114,629 Sewer Fund 3,382 Non -Major Funds 76,100 Total governmental funds 1,194,111 Proprietary Funds: Downtown Enhancement Fund 9,437 Parking Fund 16,215 Non -Major Funds 49,437 Internal Service Funds 6,750 Total proprietary funds 81,839 Total $ 1,275,950 57 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 3. RECEIVABLES, Continued Fund Financial Statements, Continued B. Property Taxes Receivable At June 30, 2003, the City had taxes receivable in the following major funds and non -major funds in the aggregate: Property Taxes Governmental Funds: General Fund $ 611,853 Non -major Funds 9,625 Total $ 621,478 C. Interest Receivable Interest receivable consists of interest from investments pooled by the City, which is distributed among the funds according to their ending cash balances at the end of the accounting period, and interest receivable on restricted investments held by the fiscal agents which are recorded in the funds holding the investment. The interest receivable as of June 30, 2003, was as follows: City Pooled Investments Governmental Funds: General Fund $ 19,560 Sewer Fund 18,684 Contingency Fund 14,305 Capital Improvement Fund 11,114 Non -major Funds 26,408 Total governmental funds 90,071 Proprietary Funds: Downtown Enhancement Fund 4,869 Parking Fund 2,617 Non -major Enterprise Funds 5,328 Total proprietary funds 12,814 Total 102,885 Agency Funds 1,376 Total interest receivable $ 104,261 58 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 3. RECEIVABLES, Continued Fund Financial Statements, Continued D. Reimbursable Grants Receivable Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants for each major and non -major fund in the aggregate as of June 30, 2003 were as follows: Governmental Funds: Grants Fund $ 550,449 Non -major Funds 115,431 Total governmental funds $ 665,880 E. Notes Receivable In April 1995, the City entered into an agreement with the South Bay Alano Club for the purchase of a building and property owned by the City. The note in the amount of $200,000, which is secured by a deed of trust, specified a 10 year term with an interest rate of 10% per annum. The final payment of unpaid principal and monthly accrued interest is due in May 2005. The outstanding principal at June 30, 2003 is $161,308. 59 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 4. LEASE REVENUES The City leases a portion of the Hermosa Beach Community Center to nonprofit and cultural organizations. In January 2001, a 50 year lease for the retail space located in front of the North Pier Parking Structure was initiated. The City receives a monthly lease payment in the amount of $1,750. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on the consumer price index. The first increase is due in January 2006. These leases are accounted for as operating leases by the City. The future minimum rental revenues under these leases are as follows: Years Ending June 30, Total 2004 $ 39,375 2005 21,003 2006 21,000 2007 21,000 2008 21,000 2009-2014 105,000 2015-2019 105,000 2020-2024 105,000 2025-2029 105,000 2030-2034 105,000 2035-2039 105,000 2040-2044 105,000 2045-2049 105,000 2050-2054 105,000 Total $ 1,068,378 Lease revenue for fiscal year 2003 was $85,526 with $64,526 reflected in the General Fund and $21,000 in the Downtown Enhancement Fund, an enterprise fund. On January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure. The City's Downtown Enhancement Fund and Prop A Open Space funding contributed by the Los Angeles County Department of Beaches and Harbors, provided additional funding. In consideration of the contribution, 50% of the annual net income derived from the parking structure must be paid to the County each year by September 30. The payment to the County for fiscal year 2002-2003 is $168,572. 60 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 5. INTERFUND TRANSACTIONS A. Government -Wide Financial Statements Transfers At June 30, 2003, the City had the following operating transfers: B. Fund Financial Statements Governmental Activities Total Transfers Out Business -Type Activities $ 990,593 $ 990,593 The composition of due to/from other funds as June 30, 2003 is as follows: Transfers In/Out Sewer Fund Capital Improvement Fund Total Due to Other Funds Grant Fund Non -major Governmental Funds Total $ 528,732 $ 148,781 $ 677,513 108,000 108,000 $ 528,732 $ 256,781 $ 785,513 At June 30, 2003, the City had the following operating transfers: z w General Sewer Fund Contingency Fund Capital Improvement Fund Non -Major Governmental Funds Parking Fund Internal Service Fund Transfers Out Grant General Fund $ 700,000 597,469 997,469 $ 87 607,169 Non -Major Downtown Internal Governmental Enhancement Parking Service Funds Fund Fund Fund Total $ 535,289 $ 4,834 $ 987,109 $ 56,067 $ 2,283,299 80,039 57,699 50,447 1,350 597,469 997,469 80,126 57,699 1,350 657,616 $ 2,902,107 $ 87 $ 723,474 $ 4,834 $ 987,109 $ 57,417 $ 4,675,028 61 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 6. CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government -Wide Statement of Net Assets. The City elected to use the "Basic Approach" as defined by GASB Statement No. 34 for infrastructure reporting. All capital and infrastructure systems were reported using the basic approach whereby accumulated depreciation and depreciation expense have been recorded. A. Government -Wide Financial Statements At June 30, 2003, the City's capital assets consisted of the following: Capital Assets: Non -Depreciable Assets: Land Construction in progress Total non -depreciable assets Government Business -Type Activities Activities Total $ 18,052,495 $ 1,572,740 $ 19,625,235 3,523,017 25,047 3,548,064 21,575,512 1,597,787 23,173,299 Depreciable Assets: Buildings and structures 3,906,022 5,558,605 9,464,627 Improvements other than buildings 5,004,018 13,141 5,017,159 Machinery and equipment 2,529,642 50,336 2,579,978 Vehicles 2,765,500 2,765,500 Infrastructure 34,822,539 34,822,539 Total depreciable assets 49,027,721 5,622,082 54,649,803 Less accumulated depredation for: Buildings and structures (1,370,480) (376,486) (1,746,966) Improvements other than Buildings (2,048,250) (13,141) (2,061,391) Machinery and equipment (1,309,260) (33,374) (1,342,634) Vehicles (1,114,858) (1,114,858) Infrastructure (12,325,563) (12,325,563) Total accumulated depreciation (18,168,411) (423,001) (18,591,412) Total depreciable assets, net 30,859,310 5,199,081 36,058,391 Total capital assets $ 52,434,822 $ 6,796,868 $ 59,231,690 62 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 6. CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued The following is a summary of capital assets for governmental activities for the year ended June 30, 2003: Balance Balance July 1, 2002 Additions Deletions Adjustments June 30, 2003 Governmental Activities: Capital Assets, not being depreciated: Land $ 18,052,495 $ 18,052,495 Construction in progress 1,749,527 $ 3,523,017 $ (1,749,527) 3,523,017 Total capital assets, not being depreciated 19,802,022 3,523,017 $ - (1,749,527) 21,575,512 Capital Assets, being depreciated: Buildings and structures 2,017,097 149,202 1,739,723 3,906,022 Improvements other than buildings 4,990,705 3,509 9,804 5,004,018 Machinery and equipment 2,042,492 488,988 (1,838) 2,529,642 Vehicles 2,847,788 154,401 (236,689) 2,765,500 Infrastructure 34,521,491 441,615 (140,567) 34,822,539 Total capital assets, being depreciated 46,419,573 1,237,715 (379,094) 1,749,527 49,027,721 Less accumulated depredation for: Buildings and structures (1,305,326) (65,154) (1,370,480) Improvements other than buildings (1,839,164) (209,086) (2,048,250) Machinery and equipment (1,046,951) (264,147) 1,838 (1,309,260) Vehicles (981,598) (364,502) 231,242 (1,114,858) Infrastructure (11,343,693) (1,078,936) 97,066 (12,325,563) Total accumulated depreciation (16,516,732) (1,981,825) 330,146 - (18,168,411) Total capital assets, being depreciated, net 29,902,841 (744,110) (48,948) 1,749,527 30,859,310 Total governmental activities $ 49,704,863 $ 2,778,907 $ (48,948) $ - $ 52,434,822 63 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 6. CAPITAL ASSETS, Continued A. Government -Wide Financial Statements, Continued 1 Governmental activities depreciation expense for capital assets for the year ended June 30, 2003 was $1,981,825. The City did not allocate the depreciation expense to departments/functions. 1 The following is a summary of capital assets for business -type activities: Balance Balance July 1, 2002 Additions Deletions Adjustments June 30, 2003 1 Business -type Activities: Capital assets, not being depreciated: Land $ 1,572,740 $ 1,572,740 Construction in progress $ 25,047 25,047 Total capital assets, not being depredated 1,572,740 25,047 $ $ 1,597,787 1 Capital assets, being depreciated: Buildings and structures 5,558,605 5,558,605 Improvements other than buildings 13,141 13,141 Machinery and equipment 50,336 50,336 Total capital assets, being depreciated 5,622,082 5,622,082 1 Less accumulated depreciation for: Buildings and structures (258,557) (117,929) (376,486) Improvements other than buildings (13,141) (13,141) 1 Machinery and equipment (28,236) (5,138) (33,374) Total accumulated depreciation (299,934) (123,067) - (423,001) Total capital assets, being depreciated, net 5,322,148 (123,067) - 5,199,081 Total business -type activities $ 6,894,888 $ (98,020) $ $ $ 6,796,868 1 Business -type activities depreciation expense for capital assets for the year ended June 30, 2003 are as follows: Downtown enhancement $ 117,658 Parking 5,409 Total depreciation expense $ 123,067 B. Fund Financial Statements 1 The fund financial statements do not present General Government Capital Assets. They are shown in the Reconciliation of the Governmental Funds Balances Sheet to the Government -Wide Statement of Net Assets located after the governmental fund balance sheet in the fund financial statements. 1 64 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 7. LONG-TERM DEBT A. Long -Term Debt with City Commitment The following is a summary of compensated absences payable transactions for the year ended June 30, 2003: Classification Balance Balance Due in Due in more July 1, 2002 Additions Retirements June 30, 2003 One Year than One Year Governmental activities: Compensated absences $ 992,688 $ (96,146) $ 896,542 $ 726,159 $ 170,383 Total $ 992,688 $ $ (96,146) $ 896,542 $ 726,159 $ 170,383 The long-term portion of compensated absences payable has been accrued for the Governmental Activities on the Government -Wide Financial Statement. There is no fixed payment schedule to pay these liabilities. Total amount of compensated absences payable at June 30, 2003, was $896,542. B. Long -Term Debt without City Commitment At June 30, 2003, the following Special Assessment Bonds are payable from the proceeds of the Special Assessment levied and collected on all real property within the special districts. The City is in no way obligated to repay the debt in the event of default and the debt is not recorded in the accompanying financial statements. 1998 Lower Pier Special Assessment Bonds In November 1997, limited obligation improvement bonds in the amount of $400,000 were issued for the Lower Pier Avenue Assessment District for street and sidewalk improvements in the downtown area. The City is in no way financially obligated for payments of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Balance Interest Total 2004 $ 15,000 $ 22,263 $ 37,263 2005 15,000 21,287 36,287 2006 15,000 20,312 35,312 2007 20,000 19,175 39,175 2008 20,000 17,875 37,875 2009-2013 110,000 69,225 179,225 2014-2018 155,000 26,813 181,813 Total $ 350,000 $ 196,950 $ 546,950 65 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 7. LONG-TERM DEBT, Continued B. Long -Term Debt without City Commitment, Continued 1999 Myrtle Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,159,114 were issued for the Myrtle Avenue Utility Underground Assessment District for the undergrounding of utilities within the district. The City is in no way financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending Balance June 30, Principal Interest Total 2004 $ 40,000 $ 52,702 $ 92,702 2005 40,000 50,923 90,923 2006 45,000 48,987 93,987 2007 45,000 46,895 91,895 2008 45,000 44,735 89,735 2009-2013 270,000 184,845 454,845 2014-2018 355,000 88,535 443,535 2019-2023 165,000 21,419 186,419 Total $ 1,005,000 $ 539,041 $ 1,544,041 1999 Loma Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,324,653 were issued for the Loma Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is in no way financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Balance Interest Total 2004 $ 45,000 $ 61,685 $ 106,685 2005 50,000 59,570 109,570 2006 50,000 57,295 107,295 2007 50,000 54,970 104,970 2008 55,000 52,448 107,448 2009-2013 315,000 216,907 531,907 2014-2018 410,000 117,928 527,928 2019-2023 200,000 11,787 211,787 Total $ 1,175,000 $ 632,590 $ 1,807,590 66 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 8. OTHER REQUIRED FUND DISCLOSURES A. Deficit Fund Balances At June 30, 2003, the following funds had deficit fund equity: Bayview Drive Underground District Bonnie Brae Underground District Beach Drive Underground District $ (30,000) $ (50,000) $ (23,724) The deficits represent "start up" costs for the district and will be eliminated once the districts have been formed and assessment collections are received. If the districts are not approved, the costs will be transferred to another fund. B. Excess of Expenditures over Appropriations For the year ended June 30, 2003, expenditures exceeded budget in the Internal Service Insurance Fund in the amount of $183,211 because of an increase in the estimate of incurred but not reported (IBNR) claims during the period. 9. RISK MANAGEMENT The City maintains an internal service fund to account for the City's general liability and workers' compensation claims, automobile, property, and unemployment insurance. The City is self-insured for individual workers' compensation claims up to $325,000 and for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $10,000,000 per occurrence, as a member of the Independent Cities Risk Management Authority (ICRMA). Settled claims have not exceeded this coverage in any of the past four years. ICRMA is a joint exercise of powers authority organized and operating pursuant to the California Government Code. ICRMA was formed in 1980 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable ICRMA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers' compensation claims. ICRMA's annual budget is based on estimated payroll, historical loss experience and self insured retention for each participating member. The budgeted weighted risk sharing percentage is one element of determining the City's annual premium but does not necessarily represent the percentage participation in the losses of the ICRMA. Budgeted weighted risk sharing percentages for the last five years are listed below: 2.57% weighted risk sharing percentage for July 1, 2002 to July 1, 2003 3.10% weighted risk sharing percentage for July 1, 2001 to July 1, 2002 3.10% weighted risk sharing percentage for July 1, 2000 to July 1, 2001 1.84% weighted risk sharing percentage for July 1, 1999 to July 1, 2000 2.41 % weighted risk sharing percentage for July 1, 1998 to July 1, 1999 67 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 9. RISK MANAGEMENT, Continued The City's premiums to ICRMA in the amount of $ 136,698 for the fiscal year 2002-2003 are in accordance with formulas established by ICRMA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement however there has never been an additional assessment since the pool was formed The City has entered into contracts with service agents who supervise and administer the City's general liability and workers' compensation insurance program. Claim loss estimates are determined by the service agent based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (IBNR) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid. The workers' compensation and general liability claims payable of $2,342,633 reported at June 30, 2003, are based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the Fund's claims liability amounts were as follows: Current Year Beginning Claims and of Year Changes in Liability Estimates Claim Payments End Amounts of Year Due within Liability One Year Workers' Compensation 2000-2001 $ 1,264,848 $ 777,058 $ (631,538) $ 1,410,368 $ 250,000 2001-2002 1,410,368 1,256,827 (686,366) 1,980,829 325,000 2002-2003 1,980,829 473,475 (685,173) 1,769,131 325,000 General Liability 2000-2001 $ 510,403 $ 321,960 $ (259,440) $ 572,923 $ 250,000 2001-2002 572,923 10,316 (250,857) 332,382 250,000 2002-2003 332,382 596,841 (355,721) 573,502 250,000 Detailed financial information may be obtained from the ICRMA Program Administrator located at 5777 West Century Boulevard, Suite 665, Los Angeles, California 90045. 68 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS A. Public Employee Retirement System Plan Description The City contributes to the California Public Employees Retirement System (Ca1PERS), an agent multiple -employer public employee defined benefit pension plan. Ca1PERS provides retirement and disability benefits, annual cost -of -living adjustments, and death benefits to plan members and beneficiaries. Ca1PERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the Ca1PERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. Funding Policy City employees are required by State statute to contribute 7% for miscellaneous employees and 9% for safety employees of their annual covered salary. As a negotiated benefit, the City makes the contributions required of City employees on their behalf. Those contributions amounted to $750,130 for the year ended June 30, 2003. The City, as the employer, is required to contribute for fiscal year 2002- 2003 at an actuarially determined rate; the current rate applied to annual covered payroll is 0% for miscellaneous employees, 21.398% for police employees, and, 8.451% for fire employees. The contribution rate for miscellaneous employees is 0% because their plan is superfunded, meaning that the actuarial value of plan assets exceeds the present value of projected benefits. The contribution requirements of City employees and the City employer are established and may be amended by Ca1PERS. Annual Pension Cost For fiscal year 2002-2003, the City's annual pension cost of $789,189 for Ca1PERS was equal to the City's required and actual contributions, of which $0 is for the miscellaneous plan, $635,079 for the police plan and $154,110 for the fire plan. The required contribution was determined as part of the June 30, 2001, actuarial valuation using the entry age normal actuarial cost method. The actuarial assumptions included (a) 8.25% investment rate of return (net of administrative expenses); (b) projected salary increases ranging from 3.75% to 14.2% depending on age, service, and type of employment, and (c) 2% per year cost -of -living adjustments. Both (a) and (b) included an inflation component of 3.5%. The actuarial value of PERS assets was determined using techniques that smooth the effects of short-term volatility in the market value of investments over a three year period. PERS unfunded actuarial accrued liability (or surplus) is being amortized as a level percentage of projected payroll on a closed basis. The amortization period at June 30, 2001 was 18 years for public safety police employees, 22 years for public safety fire employees, and 42 years for miscellaneous employees for prior and current service unfunded liability. 69 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS, Continued A. Public Employee Retirement System, Continued THREE-YEAR TREND INFORMATION FOR PERS Miscellaneous Plan Police Plan Fire Plan Fiscal Year Annual Percentage of Pension Cost APC Net Pension (APC) Contributed Obligation 6/30/2001 $ 100% $ 6/30/2002 - 100% 6/30/2003 - 100% Annual Percentage of Pension Cost APC Net Pension Fiscal Year (APC) Contributed Obligation 6/30/2001 $ 510,729 100% $ 6/30/2002 563,%1 100% 6/30/2003 635,079 100% Fiscal Year Annual Percentage of Pension Cost APC Net Pension (APC) Contributed Obligation 6/30/2001 $ 161,853 100% $ 6/30/2002 169,691 100% 6/30/2003 154,110 100% City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS, Continued B. Other Post -Employment Benefits In addition to the pension benefits described above, the City provides post -employment health care benefits, in accordance with negotiated Memoranda of Understanding. Prior to July 1, 2000 these benefits were available to employees represented by the Management Association, General and Supervisory Bargaining Unit represented by the California Teamsters Public, Professional and Medical Employees' Union and the Professional and Administrative Employee Association. Eligible employees were service retirees, age 55 or over, with a minimum of ten years continuous service with the City. Employees who retired from September 1, 1988 through August 31,1991 were provided: 1) $60 per month (or cost of policy, whichever is less) for a minimum of ten years continuous service with the City, or 2) $80 (or the cost of policy, whichever is less) for a minimum of twenty years continuous service, payable to the medical insurance provider. Employees who retired from September 1, 1991 to June 30, 2000 were provided: 1) $40 per month (or cost of policy, whichever is less) for a minimum of ten years continuous service with the City, or 2) $60 respectively (or the cost of policy, whichever is less) for a minimum of twenty years continuous service, payable to the medical insurance provider. For employees retiring on or after July 1, 2002, post employment benefits are as follows for each bargaining group: General and Supervisory Bargaining Unit For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $60 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) $120 per month (or cost of policy, whichever is less) with a minimum of 20 years of service. Professional and Administrative Employees Association For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $80 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) $140 per month (or cost of policy, whichever is less) with a minimum of 20 years of service. 71 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 10. RETIREMENT PLANS, Continued B. Other Post -Employment Benefits, Continued Hermosa Beach Management Association For service retirement at age 55 or over employee will receive a medical insurance supplement in the amount of: 1) $60 per month (or the cost of policy, whichever is less) with a minimum of ten years of continuous service with the City, or 2) Cost of policy for employee only with a minimum of 20 years of service. Police Management Association For service retirement: 1) At age 55 or over employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of fifteen years of continuous service with the City, or 2) At age 50 employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of 20 years of continuous service. Police Officers Association For service retirement: 1) At age 55 or over employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of fifteen years of total full-time service with the City, or 2) At age 50 employee will receive a medical insurance supplement in the amount of $200 per month (or cost of policy, whichever is less) with a minimum of 20 years of total full-time service. Firefighters Association For service retirement at age 50 or disability retirement (no age restriction) employee will receive a medical insurance supplement in the amount of: 1) $150 per month with a minimum of ten years of service with the City, or 2) $200 per month with a minimum of 20 years of service. Estimated benefits payable are budgeted each fiscal year. For fiscal year 2002-2003, sixteen retirees received benefits at a total cost of $19,719. 72 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 11. COMMITMENTS AND CONTINGENCIES A. Commitments The City had several outstanding or planned construction projects as of June 30, 2003. These projects are evidenced by contractual commitments with contractors and include: Project Commitment Spent to Date Remaining Infrastructure $ 1,750,589 $ 2,112606 Municipal Pier Upgrades 258,933 2,370,200 Valley Park Renovation 1,503,330 780,834 Community Center Theatre Phase I Remodel 10,165 125,969 The infrastructure projects include both street and sewer projects that are funded by multiple funds including the Tyco Fund, the Proposition C Fund, the Capital Improvement Fund and the Sewer Fund. An additional source of funding for the placement of handicap ramps and curb cuts for ADA compliance on City streets is a Community Development Block Grant. The Municipal Pier Upgrades project is a commitment of the General Fund and the Tyco Fund, with remaining funding provided by a County Open Space Grant and a State Coastal Conservancy Grant. The Valley Park Renovation project is a commitment of multiple funds including the Parks/Rec Facility Tax Fund, the 4% Utility Users Tax Fund, the Sewer Fund and the Capital Improvement Fund. Additional funding for Valley Park is provided by a Roberti-Zberg Grant, a Per Capita Grant and a State Department of Recreation Grant. The Community Center Theatre Phase I Remodel is funded by a Community Development Block Grant for ADA Compliance. B. Contingencies The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. 12. SUBSEQUENT EVENTS MacPherson Oil Project The City entered into a lease with MacPherson Oil in 1986 to allow oil drilling from the City Yard site. During the time that ensued, MacPherson was taking the necessary steps to obtain all required environmental reviews and permits. In 1995 the voters enacted a new ordinance by way of an initiative, entitled Proposition E, to prohibit oil drilling in the City. The issue of whether Proposition E applied to MacPherson's project was the subject of a lawsuit initiated by Proposition E proponents. The City and MacPherson argued that Proposition E did not preclude MacPherson from exercising its rights under the lease. The court of appeal, in a final opinion, ruled otherwise, and the oil project is now dead as a result of that decision. 73 City of Hermosa Beach Notes to Basic Financial Statements, Continued For the year ended June 30, 2003 12. SUBSEQUENT EVENTS, Continued MacPherson Oil Project, Continued MacPherson has now sued the City, by way of a cross-complaint in the legal action referred to above, for damages due to the alleged breach of contract caused by Proposition E. Both parties filed motions for summary judgment in the trial court. In its motion, Macpherson contended, among other things, that enactment of Proposition E worked a breach of its lease with the City, entitling it to damages for lost profits. It claims damages in excess of $100 million. In its motion, the City contended that because the Court of Appeal has ruled Proposition E not to be an unconstitutional impairment of contract, it cannot work a breach. The City further contended that the passage of Proposition E made performance of the lease impossible. Finally, the City contended that if Macpherson is entitled to any damages, they are limited to restitution, and not lost profits. In December, 2003, the trial court granted the City's motion in its entirety, holding that MacPherson is not entitled to proceed against the City for damages. MacPherson is expected to appeal this ruling. The City will vigorously defend this ruling in the court of appeal; however, should Macpherson prevail and obtain a reversal, the matter will be remanded to the trial court for trial. That event could have a material effect on the financial position of the City. 13. PRIOR PERIOD ADJUSTMENTS A. Government -Wide Statements The City recorded the following prior period adjustments to correct prior year transactions, record long- term advances and implement GASB Statement No. 34. Accordingly, the net assets as of July 1, 2002, have been restated as follow: Net Assets Prior Period Adjustments as Previously Capital Long -Term Net Assets Reported Assets Debt Other as Restated Governmental -type activities: Net assets $ 18,515,523 47,207,844 (992,688) 565,696 $ 65,296,375 Total governmental -type activities $ 18,515,523 47,207,844 (992,688) 565,696 $ 65,296,375 B. Fund Financial Statements The City made adjustments in the following funds as a result of GASB Statement No. 34 implementation. Net Assets as Previously Prior Period Net Assets Reported Adjustments as Restated Major Funds: General $ 954,450 $ 565,696 $ 1,520,146 74 REQUIRED SUPPLEMENTARY INFORMATION 75 City of Hermosa Beach Required Supplementary Information For the year ended June 30, 2003 1. FINANCIAL POLICIES Any funds remaining unspent at year-end in the General Fund, generally transfer equally to the Contingency Fund, Insurance Fund, Equipment Replacement Fund and the Capital Improvement Fund, however, the City Council deferred the transfer to the Equipment Replacement Fund in fiscal year 2002-03. In 2001 - 2002, the City established financial goals for the following funds: Contingency Fund - Goal of fund balance equal to 15% of the General Fund operating budget appropriations for economic uncertainties, unforeseen emergencies. Insurance Fund - Goal of $3,000,000 in retained earnings for claims reserves and catastrophic losses. Equipment Replacement Fund - Goal of retained earnings equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Compensated Absences Fund - Goal of fund balance equal to 50% funding for accrued liabilities for employee vacation, sick and compensatory time. 2. BUDGETS AND BUDGETARY ACCOUNTING Budgets are annually adopted for all governmental and proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the "annual appropriated budget." The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund, however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level. An example of this would be the Finance Department, which has two divisions, Finance Administration, funded by the General Fund and Finance Cashier, funded by the Parking Fund. The City Manager may approve a transfer from Finance Administration to another department within the General Fund, however, a transfer from Finance Administration to Finance Cashier would require City Council approval because the divisions are in two different funds. Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year. Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year- end. Following are the budget comparison schedule for the General Fund and applicable major special revenue funds for which an annual operating budget was adopted. 76 City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - General Fund Fund Balance, July 1 Resources (inflows): Property taxes 5,076,483 5,192,619 5,282,147 89,528 Other taxes 7,284,594 7,085,925 7,219,767 133,842 Licenses and permits 427,827 453,137 571,682 118,545 Fines and forfeitures 190,000 211,000 276,786 65,786 Use of money and property 224,871 234,871 285,382 50,511 Intergovernmental 1,189,177 1,191,864 1,195,416 3,552 Charges for services 1,039,651 1,113,986 1,165,490 51,504 Miscellaneous 414,044 405,891 434,362 28,471 Interest earned on investments 178,291 88,621 80,558 (8,063) Transfers in 1,314,801 1,583,727 1,583,299 (428) Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 419,132 $ 1,520,146 $ 1,520,146 $ Total resources 17,339,739 17,561,641 18,094,889 533,248 Charges to appropriations (outflows): Legislative and legal 739,584 832,158 832,157 1 General government 1,139,485 1,217,148 1,196,193 20,955 Public safety 10,078,578 10,135,539 9,916,705 218,834 Community development 1,116,541 1,187,916 939,179 248,737 Culture and recreation 1,035,009 1,042,999 966,621 76,378 Public works 2,053,870 2,068,155 1,967,115 101,040 Capital outlay 380,073 680,410 202,142 478,268 Transfers out 1,100,000 2,902,108 2,902,107 1 Total charges to appropriations 17,643,140 20,066,433 18,922,219 1,144,214 Excess of resources over (under) charges to appropriations (303,401) (2,504,792) (827,330) 1,677,462 Fund Balances, June 30 $ 115,731 $ (984,646) $ 692,816 $ 1,677,462 77 City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Tyco Fund Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Fund Balance, July 1 $ - $ $ $ Resources (inflows): Use of money and property 2,175,000 1,900,000 (275,000) Interest earned on investment 39,008 41,281 2,273 Total resources 2,214,008 1,941,281 (272,727) Charges to appropriations (outflows): Capital outlay 2,175,000 33,100 2,141,900 Total charges to appropriations 2,175,000 33,100 2,141,900 Excess of resources over (under) charges to appropriations 39,008 1,908,181 1,869,173 Fund Balances, June 30 $ $ 39,008 $ 1,908,181 $ 1,869,173 Budgetary Comparison Schedule - Grant Fund Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget Fund Balance, July 1 $ - $ 2,539 $ 2,539 $ Resources (inflows): Intergovernmental 45,000 370,038 372,098 2,060 Miscellaneous 14,626 9,094 4,390 (4,704) Total resources 59,626 379,132 376,488 (2,644) Charges to appropriations (outflows): Public safety 14,626 13,656 4,390 9,266 Community development 2,946 356 2,590 Public works 10,730 7,168 3,562 Capital outlay 45,000 356,362 356,362 - Transfers out 88 87 1 Total charges to appropriations Excess of resources over (under) charges to appropriations 59,626 383,782 368,363 15,419 (4,650) 8,125 12,775 Fund Balances, June 30 $ $ (2,111) $ 10,664 $ 12,775 78 City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Seuer Fund Positive (motive) Budgeted Amounts Actual Variance with Original Final Amatmts Final Budget Fund Balance, July 1 $ 3,393,826 $ 3,520,161 $ 3,520,161 $ Resources (inflows): Intergovernmental 10,0% 11,230 11,841 611 Charges for services 19,550 22,965 30,773 7,808 Mscellarheous 40,960 5,664 958 (4,706) Interest earned on investments 163,067 108,606 106,211 (2,395) Transfers in 700,000 700,000 700,000 Total resources 933,673 848,465 849,783 1,318 Charges to appropriations (outflows): Public works 591,141 603,071 535,236 67,835 Capital outlay 3,036,000 3,334# ,761 1,661,132 1,673,629 Total charges to appropriations 3,627,141 3,537,832 2,196,368 1,741,464 Excess of resources over (under) charges to appropriations (2,693,468) (3,089,367) (1,346,585) 1,742,782 Fund Balances, June 30 $ 650,358 $ 430,794 $ 2,173,576 $ 1,742,782 Budgetary Comparison Schedule - Contingency Fund Fund Balance, July 1 Resources (inflows): Interest earned on investments Transfers in Total resources Positive (Negative) Budgeted Amounts Actual Variance with Original Final Amounts Final Budget $ 2,104,103 $ 2,272,087 $ 2,272,087 $ 87,980 68,668 72,624 597,469 597,469 87,980 666,137 670,093 3,956 3,956 Fund Balances, June 30 $ 2,192,083 $ 2,938,224 $ 2,942,180 $ 3,956 79 City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 2. BUDGETS AND BUDGETARY ACCOUNTING, Continued Budgetary Comparison Schedule - Capital Improvement Fund Fund Balance, July 1 Resources (inflows): Miscellaneous Interest earned on investments Transfers in Total resources Charges to appropriations (outflows): Capital outlay Total charges to appropriations Excess of resources over (under) charges to appropriations Fund Balances, June 30 Budgeted Amounts Original Final 1,537,663 $ 2,061,308 114,940 61,832 480,039 1,077,596 594,979 1,139,428 I Positive (Negative) Actual Variance with Amounts Final Budget $ 2,061,308 $ 1 3,670 3,670 60,039 (1,793) 1,077,595 (1) 1,141,304 1,876 2,103,858 2,314,027 788,724 1,525,303 2,103,858 2,314,027 788,724 1,525,303 (1,508,879) (1,174,599) 352,580 1,527,179 I $ 28,784 $ 886,709 $ 2,413,888 $ 1,527,179 80 City of Hermosa Beach Required Supplementary Information, Continued For the year ended June 30, 2003 PUBLIC EMPLOYEE RETIREMENT SYSTEMS (PERS) SCHEDULE OF FUNDING PROGRESS Miscellaneous Plan (A) (B) (C) (D) (E) (F) (Overfunded) Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Valuation Asset Accrued Liability Ratio Covered Payroll Date Value Liability (B -A) (A/B) Payroll (C/E) Police Plan Fire Plan 6/30/1999 $ 21,247,564 $ 15,399,017 $ (5,848,547) 138.0% $ 3,980,950 (146.9)% 6/30/2000 23,322,200 16,886,003 (6,436,197) 138.1% 3,993,097 (161.2)% 6/30/2001 23,817,395 18,384,409 (5,432,986) 129.6% 4,116,801 (132.0)% (A) (B) (C) (D) (E) (F) Unfunded Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Valuation Asset Accrued Liability Ratio Covered Payroll Date Value Liability (B -A) (A/B) Payroll (C/E) 6/30/1999 $ 25,570,781 $ 26,566,045 $ 995,264 96.3% $ 2,443,781 40.7% 6/30/2000 27,886,110 29,079,122 1,193,012 95.9% 2,619,185 45.5% 6/30/2001 28,814,227 31,541,217 2,726,990 91.4% 2,576,494 105.8% (A) (B) (C) (D) (E) (F) Unfunded (Overfunded) Unfunded Actuarial (Overfunded) Liability as Entry Age Actuarial Percentage of Actuarial Actuarial Actuarial Accrued Funded Covered Value Asset Accrued Liability Ratio Covered Payroll Date Value Liability (B -A) (A/B) Payroll (C/E) 6/30/1999 $ 12,194,938 $ 11,870,016 $ (324,922) 102.7% $ 1,440,510 (22.6)% 6/30/2000 13,318,065 12824,365 (493,700) 103.8% 1,338,621 (36.9)% 6/30/2001 13,815,326 13,845,239 29,913 99.8% 1,522,830 2.0% This page intentionally left blank 82 SUPPLEMENTARY INFORMATION 83 This page intentionally left blank. 84 NON -MAJOR GOVERNMENTAL FUNDS SPECIAL REVENUE FUNDS Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and highway Code 22500-22679. State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund. AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element. Compensated Absences Fund - This fund is used to account for funds set aside to provide for liabilities associated with vacation time, sick time, etc. accumulated by employees. County Gas Tax Fund - This fund is used to account for County Aid to City's funds for use on eligible streets of general countywide interest. Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities. Parks and Recreation Facilities Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities. 4% Utility Users Tax Fund - This fund is used to account for funds remaining from a 4% utility users tax which was pledged for lease payments relating to certificates of participation (COPs) for the purchase of open space. The COPs were defeased in 1997. Remaining funds must be spent for open space purposes. Building Improvement Fund - This fund is intended to provide funds for ongoing building maintenance. Lower Pier Administrative Expense Fund - This fund temporarily holds funds for payment of administrative expenses for the assessment district. These funds are invested but interest is not allocated to this fund because it is not required by the bond documents. Myrtle District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Myrtle Avenue Utility Underground Special Assessment District. Loma District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District. 85 NON -MAJOR GOVERNMENTAL FUNDS, Continued Community Development Block Grant Fund - This fund is used to account for funds received for participation in the federal block grant program. Projects must be approved by the County CDBG Commission. Office of Traffic Safety Grant - This fund is used to account for a grant from the State of California that addresses decreasing alcohol and hit and run collisions and increasing seat belt, child safety seat and bivycle helmet use through education and en Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles. Supplemental Law Enforcement Services Fund (COPS) - This fund is used to account for funds received from the Citizen Option for Public Safety (COPS) program, established by the State Legislature in fiscal year 1996- 1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding. California Law Enforcement Equipment Program Fund (CLEEP) - Funds received for the purchase of high technology law enforcement equipment. Taskforce for Regional Auto Theft Prevention (TRAP) Fund - Funds provided by a $1 fee on vehicle registration implemented by the Los Angeles County Board of Supervisor for a program to deter, investigate and prosecute vehicle theft in Los Angeles County. Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations. Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system. Artesia Boulevard Relinquishment Fund - This fund is used to track the costs related to the transfer ownership of Artesia Boulevard from the State to the City. During the fiscal year 2000-01, the State of California determined an estimated cost for the rehabilitation of the street which will be contributed to the City as a part of the transfer of ownership. Lower Pier Avenue Assessment District Fund - This fund is used to account for proceeds from the sale of bonds for downtown improvement. The bonds are secured by real property in the downtown area and repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. 86 NON -MAJOR GOVERNMENTAL FUNDS, Continued Myrtle Utility Underground Improvement Fund - This fund is used to account for expenditures relating to the cost for utility undergrounding in the special assessment district. It is also used to account for proceeds from bonds sold to finance the cost of the undergrounding. The bonds are secured by liens against real property within the district and will be repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. Loma Utility Underground Improvement Fund - This fund is used to account for expenditures relating to the cost for utility undergrounding in the special assessment district. It is also used to account for proceeds from bonds sold to finance the cost of the undergrounding. The bonds are secured by liens against real property within the district and will be repaid from assessments against the property. The City is not obligated in any way with respect to the bonds. Bayview Drive Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. Bonnie Brae Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. Beach Drive Underground District - This fund is used to account for funds set aside for the creation of a new utility undergrounding district. The expenditures in this fund will be reimbursed to the City upon formation of the district. 87 City of Hermosa Beach Combining Balance Sheet Non -Major Governmental Funds June 30, 2003 ASSETS Cash and investments Reimbursable grants receivable Interest receivable on investments Other accounts receivable Property taxes receivable Total assets LIABILITIES AND FUND BALANCES Lighting and Landscaping District 1 1 Special Revenue Funds ' State Compensated Gas Tax AB 939 Absences $ 200,089 $ 1,220 7,313 9,625 $ 218,247 $ 4,111 $ 425,615 $ 333,164 1 10 2,596 13,139 4,936 , Liabilities: Accounts payable $ 19,987 $ Accrued wages and compensated absences 21,558 Due to other funds Deferred revenue 9,625 Total liabilities 51,170 Fund Balances: Reserved: Bike paths Strand walkways Re -appropriations Unreserved, undesignated 17,260 $ 433,147 $ 333,164 1 13,670 $ 20,000 3,741 ' 13,670 23,741 $ ' 655 2,935 ' 167,077 409,406 333,164 Total fund balances 167,077 Total liabilities and fund balances 3,590 409,406 333,164 $ 218,247 $ 88 17,260 $ 433,147 $ 333,164 1 1 1 1 Special Revenue Funds 1 Prop A Parks and Lower Pier Myrtle Dist Loma Dist County Open Recreation 4% Utility Building Admin Admin Admin 1 Gas Tax Space Facilities Users Tax Improvement Expense Expense Expense I $ 152 $ 200,246 $ 31,803 $ 4,551 $ 663 $ 6,484 $ 9,037 $ 57,424 1,209 198 21 42 52 1 $ 152 $ 57,424 $ 201,455 $ 32,001 $ 4,572 $ 663 $ 6,526 $ 9,089 1 1 $ 27,666 $ 15,599 $ 400 $ 431 $ 510 1 $ 57,421 I$ 57,421 27,666 15,599 $ 400 431 510 1 1 53,486 152 3 120,303 16,402 4,572 263 6,095 8,579 1 152 3 173,789 16,402 4,572 263 6,095 8,579 1 $ 152 $ 57,424 $ 201,455 $ 32,001 $ 4,572 $ 663 $ 6,526 $ 9,089 1 -1 1 (Continued) 89 City of Hermosa Beach Combining Balance Sheet, Continued Non -Major Governmental Funds, Continued June 30, 2003 ASSETS Cash and investments Reimbursable grants receivable Interest receivable on investments Other accounts receivable Property taxes receivable Total assets LIABILITIES AND FUND BALANCES Liabilities: Accounts payable Accrued wages and compensated absences Due to other funds Deferred revenue Total liabilities Fund Balances: Reserved: Bike paths Strand walkways Re -appropriations Unreserved, designated Unreserved, undesignated Total fund balances Total liabilities and fund balances Special Revenue Funds Community Office of Air Supplemental Development Traffic Quality Law I Block Safety Management Enforcement Grant Grant District Services $ 136,946 $ 47,606 $ 10,401 834 $ 11,321 ' $ 47,606 $ 10,401 $ 11,321 $ 137,780 t $ 3,665 $ 6,263 $ 34,047 397 $ 24 43,871 3,741 10,524 47,536 10,401 10,548 34,047 1 1 70 773 103,733 70 773 103,733 $ 47,606 $ 10,401 $ 11,321 $ 137,780 90 1 1 1 Special Revenue Funds California Law Enforcement Equipment Taskforce for Regional Asset Program Auto Theft Seizure and (CLEEP) Prevention Forfeiture Fire Protection $ 53,452 $ 178,181 $ 323 1,084 $ 38,026 216 Artesia Lower Bvld Pier Ave Myrtle Utility Loma Utility Relinquish- Assessment Underground Underground ment District Improvement Improvement 476,224 $ 507,844 $ 68,938 $ 18,838 $ 97,820 2,899 3,117 427 115 594 1,149 $ 53,775 $ 38,026 $ 179,481 $ $ 10,023 1 $ 4,802 33,224 479,123 $ 510,961 $ 69,365 $ 20,102 $ 98,414 10,023 38,026 $ $ 1 1 42,781 ' 971 1 1 1 20,289 24,357 $ 10,299 $ 10,299 $ 5,407 159,192 454,766 510,961 69,365 4,396 98,414 43,752 179,481 479,123 510,961 69,365 9,803 98,414 $ 53,775 $ 38,026 $ 179,481 $ 479,123 $ 510,961 $ 69,365 $ 20,102 $ 98,414 91' (Continued) City of Hermosa Beach Combining Balance Sheet, Continued ' Non -Major Governmental Funds, Continued June 30, 2003 Special Revenue Funds Bayview Drive Bonnie Brae Beach Drive Total Other Underground Underground Underground Governmental District District District Funds ASSETS Cash and investments $ 5,000 $ 2,759,158 Reimbursable grants receivable 115,431 Interest receivable on investments 14,741 Other accounts receivable 76,100 Property taxes receivable 9,625 Total assets $ - $ $ 5,000 $ 2,975,055 LIABILITIES AND FUND BALANCES Liabilities: Accounts payable $ 724 $ 163,284 Accrued wages and compensated absences 30,522 Due to other funds $ 30,000 $ 50,000 28,000 256,781 Deferred revenue 9,625 Total liabilities 30,000 50,000 28,724 460,212 Fund Balances: I Reserved: Bike paths 655 Strand walkways 2,935 I Re -appropriations 126,031 Unreserved, designated 20,289 Unreserved, undesignated (30,000) (50,000) (23,724) 2,364,933 I Total fund balances (30,000) (50,000) (23,724) 2,514,843 Total liabilities and fund balances $ $ - $ 5,000 $ 2,975,055 This page intentionally left blank. City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances 1 Non-Major Governmental Funds For the year ended June 30, 2003 Special Revenue Funds Lighting and Landscaping State Compensated District Gas Tax AB 939 Absences REVENUES: I Property taxes $ 454,790 Other taxes Fines and forfeitures I Intergovernmental $ 404,314 Charges for services $ 58,654 Miscellaneous 4,058 I Interest earned on investments 5,848 1,775 12,114 Total revenues 460,638 406,089 74,826 $ EXPENDITURES: Current: General government 35,139 Public safety Community development Public works 542,864 Capital outlay 4,479 136,704 Total expenditures 547,343 136,704 35,139 REVENUES OVER I (UNDER) EXPENDITURES (86,705) 269,385 39,687 OTHER FINANCING SOURCES (USES): Transfers in Transfers out (20,372) (354,286) (44,263) 1 Total other financing sources (uses) (20,372) (354,286) (44,263) I REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND I OTHER FINANCING USES (107,077) (84,901) 39,687 (44,263) FUND BALANCES: Beginning of year 274,154 88,491 369,719 377,427 End of year $ 167,077 $ 3,590 $ 409,406 $ 333,164 94 1 1 ' Special Revenue Funds ' Prop A Parks and Lower Pier Myrtle Dist Loma Dist County Open Recreation 4% Utility Building Admin Admin Admin Gas Tax Space Facilities Users Tax Improvement Expense Expense Expense ' $ 3,500 $ 19,977 2,937 86,044 $ 2,775 $ 8,629 $ 9,563 $ 30 13,853 $ 7,181 $ 364 246 311 30 22,914 103,397 7,181 364 2,775 8,875 9,874 I1,733 5,618 5,849 I 11,713 18,000 506,877 347,194 I - 518,590 365,194 1,733 5,618 5,849 30 22,914 (415,193) (358,013) 364 1,042 3,257 4,025 1 57,699 (158,293) (1,021) (2,959) (3,382) (158,293) 57,699 (1,021) (2,959) (3,382) 30 (135,379) (415,193) (300,314) 364 21 298 643 122 135,382 588,982 316,716 4,208 242 5,797 7,936 $ 152 $ 3 $ 173,789 $ 16,402 $ 4,572 $ 263 $ 6,095 $ 8,579 (Continued) 95 1 City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances , Non -Major Governmental Funds, Continued For the year ended June 30, 2003 Special Revenue Funds ' Community Office of Air Development Traffic Quality Supplemental I Block Safety Management Law Grant Grant District Enforcement REVENUES: I Property taxes Other taxes $ 100,000 Fines and forfeitures I Intergovernmental $ 36,695 $ 57,310 $ 22,074 Charges for services Miscellaneous I Interest earned on investments 1,115 3,732 Total revenues 36,695 57,310 23,189 103,732 EXPENDITURES: Current: General government 774 I Public safety 38,184 17,115 Community development 12,321 Public works I Capital outlay 24,373 19,126 17,997 63,287 Total expenditures 36,694 57,310 18,771 80,402 REVENUES OVER I (UNDER) EXPENDITURES 1 4,418 23,330 OTHER FINANCING SOURCES (USES): Transfers in Transfers out (50,447) ' Total other financing sources (uses) (50,447) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES 1 (46,029) 23,330 FUND BALANCES: Beginning of year 69 46,802 80,403 End of year $ 70 $ $ 773 $ 103,733 96 I California Law Special Revenue Funds Enforcement Taskforce for Artesia Lower I Equipment Regional Asset Bvld Pier Ave Myrtle Utility Loma Utility Program Auto Theft Seizure and Fire Relinquish- Assessment Underground Underground (CLEEP) Prevention Forfeiture Protection ment District Improvement Improvement I I$ 1,548 $ 18,181 $ 38,026 Is 86,800 $ 1,149 1,970 5,370 14,307 $ 15,589 $ 2,089 563 $ 2,946 I 20,151 38,026 6,918 101,107 15,589 2,089 1,712 2,946 26,198 38,026 1 15,923 42,121 38,026 - - - - (21,970) 6,918 101,107 15,589 2,089 1,712 2,946 (88,451) ' (88,451) I (21,970) 6,918 12,656 15,589 2,089 1,712 2,946 I 65,722 172,563 466,467 495,372 67,276 8,091 95,468 $ 43,752 $ $ 179,481 $ 479,123 $ 510,961 $ 69,365 $ 9,803 $ 98,414 ' (Continued) 97 City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances 1 Non -Major Governmental Funds, Continued For the year ended June 30, 2003 Special Revenue Funds , Bayview Drive Bonnie Brae .Beach Drive Total Other Underground Underground Underground Governmental District District District Funds REVENUES: Property taxes $ 454,790 Other taxes 103,500 Fines and forfeitures 1,548 I Intergovernmental 596,577 Charges for services 58,654 Miscellaneous 201,955 I Interest earned on investments 89,403 Total revenues $ $ $ - 1,506,427 EXPENDITURES: I Current: General government 49,113 I Public safety 119,523 Community development 12,321 Public works 572,577 Capital outlay 30,000 50,000 23,724 1,239,684 Total expenditures 30,000 50,000 23,724 1,993,218 REVENUES OVER I (UNDER) EXPENDITURES (30,000) (50,000) (23,724) (486,791) OTHER FINANCING SOURCES (USES): Transfers in 57,699 Transfers out (723,474) Total other financing sources (uses) - (665,775) REVENUES AND OTHER FINANCING SOURCES OVER (UNDER) EXPENDITURES AND OTHER FINANCING USES (30,000) (50,000) (23,724) (1,152,566) FUND BALANCES: Beginning of year 3,667,409 End of year $ (30,000) $ (50,000) $ (23,724) $ 2,514,843 98 , City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lighting and Landscaping District For the year ended June 30, 2003 1 Positive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 274,154 $ 274,154 $ I Resources (inflows): Property taxes 455,900 454,790 (1,110) I Interest earned on investments 5,492 5,848 356 Amount available for appropriation 461,392 460,638 (754) Charges to appropriations (outflows): Public works 599,701 542,864 56,837 I Capital outlay 4,800 4,479 321 Transfers out 20,372 20,372- Total charges to appropriations 624,873 567,715 57,158 I Excess of resources over (under) Icharges to appropriations (163,481) (107,077) 56,404 Fund balance, June 30, 2003 $ 110,673 $ 167,077 $ 56,404 1 1 1 1 1 1 1 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual State Gas Tax For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 88,491 $ 88,491 $ Resources (inflows): Intergovernmental 410,768 404,314 (6,454) Interest earned on investments 2,338 1,775 (563) Amount available for appropriation 413,106 406,089 (7,017) Charges to appropriations (outflows): Capital outlay 136,704 136,704 Transfers out 354,711 354,286 Total charges to appropriations 491,415 490,990 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 100 (78,309) (84,901) 425 425 (6,592) $ 10,182 $ 3,590 $ (6,592) City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual AB 939 For the year ended June 30, 2003 1 Positive Budgeted (Negative) 111 Amounts Final Actual Variance with Amounts Final Budget Fund balance, July 1, 2002 $ 369,719 $ 369,719 $ IResources (inflows): Charges for services 56,000 58,654 2,654 111 Miscellaneous 4,058 4,058 Interest earned on investments 11,511 12,114 603 Amount available for appropriation 67,511 74,826 7,315 Charges to appropriations (outflows): I General government 237,073 35,139 201,934 Total charges to appropriations 237,073 35,139 201,934 I Excess of resources over (under) charges to appropriations (169,562) 39,687 209,249 I Fund balance, June 30, 2003 $ 200,157 $ 409,406 $ 209,249 1 1 1 1 1 1 1 1 101 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual ' Compensated Absences For the year ended June 30, 2003 Positive I Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget I Fund balance, July 1, 2002 $ 377,427 $ 377,427 $ Charges to appropriations (outflows): I Transfers out 44,263 44,263 Total charges to appropriations 44,263 44,263 1 Excess of resources over (under) 1 charges to appropriations (44,263) (44,263) Fund balance, June 30, 2003 $ 333,164 $ 333,164 $ ' 1 City of Hermosa Beach 1 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual County Gas Tax For the year ended June 30, 2003 I Positive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 122 $ 122 • $ - IResources (inflows): Interest earned on investments 69 30 (39) IAmount available for appropriation 69 30 (39) 1 Fund balance, June 30, 2003 $ 191 $ 152 $ (39) 1 1 1 1 1 1 1 1 1 1 1 103 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Prop A Open Space For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Intergovernmental Miscellaneous Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 135,382 48,037 135,382 $ 19,977 (28,060) 2,937 2,937 Amount available for appropriation 48,037 22,914 (25,123) Charges to appropriations (outflows): Capital outlay Transfers out 27,480 27,480 158,295 158,293 2 Total charges to appropriations 185,775 158,293 27,482 Excess of resources over (under) charges to appropriations (137,738) (135,379) 2,359 Fund balance, June 30, 2003 $ (2,356) $ 3 $ 2,359 104 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances Budget and Actual Parks and Recreation Facilities IFor the year ended June 30, 2003 I Positive Budgeted (Negative) I Amounts Final Actual Variance with Amounts Final Budget Fund balance, July 1, 2002 $ 588,982 $ 588,982 $ I Resources (inflows): Other taxes 3,500 3,500 IMiscellaneous 68,544 86,044 17,500 Interest earned on investments 18,285 13,853 (4,432) Amount available for appropriation 90,329 103,397 13,068 Charges to appropriations (outflows): I Culture and recreation 25,000 25,000 Public works 16,079 11,713 4,366 Capital outlay 638,231 506,877 131,354 ITotal charges to appropriations 679,310 518,590 160,720 I Excess of resources over (under) charges to appropriations (588,981) (415,193) 173,788 IFund balance, June 30, 2003 $ 1 $ 173,789 $ 173,788 105 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 4% Utility Users Tax For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Interest earned on investments Transfer in Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 316,716 $ 316,716 $ 10,098 7,181 (2,917) 57,699 57,699 Amount available for appropriation 67,797 64,880 (2,917) Charges to appropriations (outflows): Public works Capital outlay 18,150 347,269 18,000 150 347,194 75 Total charges to appropriations 365,419 365,194 225 Excess of resources over (under) charges to appropriations (297,622) (300,314) (2,692) Fund balance, June 30, 2003 $ 19,094 $ 16,402 $ (2,692) 106 1 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Building Improvement For the year ended June 30, 2003 I Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 4,208 $ 4,208 $ IResources (inflows): Interest earned on investments 500 364 (136) IAmount available for appropriation 500 364 (136) IFund balance, June 30, 2003 $ 4,708 $ 4,572 $ (136) 107 I City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual I Lower Pier Administrative Expense For the year ended June 30, 2003 Positive I Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 242 $ 242 $ Resources (inflows): Miscellaneous 2,775 2,775 Amount available for appropriation 2,775 2,775 ' Charges to appropriations (outflows): General government 1,763 1,733 30 Transfers out 1,021 1,021 Total charges to appropriations 2,784 2,754 30 Excess of resources over (under) charges to appropriations (9) 21 30 I Fund balance, June 30, 2003 $ 233 $ 263 $ 30 I I I I I I I 108 City of Hermosa Beach ' Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Myrtle District Administrative Expense For the year ended June 30, 2003 I Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 5,797 $ 5,797 $ - Resources (inflows): Miscellaneous 8,629 8,629 1 Interest earned on investments 162 246 84 Amount available for appropriation 8,791 8,875 84 1 Charges to appropriations (outflows): General government 5,718 5,618 100 I Transfers out 2,959 2,959 Total charges to appropriations 8,677 8,577 100 IExcess of resources over (under) charges to appropriations 114 298 184 IFund balance, June 30, 2003 $ 5,911 $ 6,095 $ 184 t 109 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Loma District Administrative Expense For the year ended June 30, 2003 Positive I Budgeted (Negative) Amounts Actual Variance with I Final Amounts Final Budget Fund balance, July 1, 2002 $ 7,936 $ 7,936 $ Resources (inflows): t Charges for services 750 (750) Miscellaneous 9,563 9,563 - Interest earned on investments 217 311 94 Amount available for appropriation 10,530 9,874 (656) 1 Charges to appropriations (outflows): General government 6,200 5,849 351 I Transfers out 3,382 3,382 - Total charges to appropriations 9,582 9,231 351 Excess of resources over (under) I charges to appropriations 948 643 (305) Fund balance, June 30, 2003 $ 8,884 $ 8,579 $ (305) I I 1 I I 1 I I 110 ' City of Hermosa Beach 1 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Community Development Block Grant For the year ended June 30, 2003 IPositive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 69 $ 69 $ - IResources (inflows): Intergovernmental 426,359 36,695 (389,664) IAmount available for appropriation 426,359 36,695 (389,664) I Charges to appropriations (outflows): Community development 14,475 12,321 2,154 Capital outlay 411,884 24,373 387,511 1 Total charges to appropriations 426,359 36,694 389,665 1 1 1 1 1 1 Excess of resources over (under) charges to appropriations 1 1 Fund balance, June 30, 2003 $ 69 $ 70 $ 1 111 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Office of Traffic Safety Grant For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Intergovernmental Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget 61,719 57,310 (4,409) Amount available for appropriation 61,719 57,310 (4,409) Charges to appropriations (outflows): Public safety Capital outlay 41,291 20,428 38,184 3,107 19,126 1,302 Total charges to appropriations 61,719 57,310 4,409 Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 $ $ 112 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Air Quality Management District For the year ended June 30, 2003 Fund balance, July 1, 2002 Resources (inflows): Intergovernmental Interest earned on investments Amount available for appropriation Charges to appropriations (outflows): General government Capital outlay Transfer out Total charges to appropriations Excess of resources over (under) charges to appropriations Fund balance, June 30, 2003 113 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 46,802 $ 46,802 $ 21,766 22,074 308 1,379 1,115 (264) 23,145 23,189 44 1,500 774 18,000 17,997 50,447 50,447 69,947 69,218 (46,802) (46,029) 726 3 729 773 $ $ 773 $ 773 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 80,403 $ 80,403 $ Resources (inflows): Other taxes 100,000 100,000 Interest earned on investments 2,826 3,732 906 Amount available for appropriation 102,826 103,732 906 Charges to appropriations (outflows): Public safety 54,079 17,115 36,964 Capital outlay 127,365 63,287 64,078 Total charges to appropriations 181,444 80,402 101,042 Excess of resources over (under) charges to appropriations (78,618) 23,330 101,948 Fund balance, June 30, 2003 $ 1,785 $ 103,733 $ 101,948 114 I City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual California Law Enforcement Equipment Program For the year ended June 30, 2003 Positive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 65,722 $ 65,722 $ I Resources (inflows): Intergovernmental 18,180 18,181 1 IInterest earned on investments 2,040 1,970 (70) Amount available for appropriation 20,220 20,151 (69) ICharges to appropriations (outflows): Public safety 26,200 26,198 2 I/ Capital outlay 60,632 15,923 44,709 Total charges to appropriations 86,832 42,121 44,711 ' Excess of resources over (under) charges to appropriations (66,612) (21,970) 44,642 IFund balance, June 30, 2003 $ (890) $ 43,752 $ 44,642 115 I City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual I Taskforce for Regional Auto Theft Prevention For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ - $ $ Resources (inflows): Intergovernmental 39,778 38,026 (1,752) Amount available for appropriation 39,778 38,026 (1,752) Charges to appropriations (outflows): Public safety 39,778 38,026 1,752 Total charges to appropriations 39,778 38,026 1,752 Excess of resources over (under) I charges to appropriations - Fund balance, June 30, 2003 $ $ $ I I I I I I 116 City of Hermosa Beach tStatement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Asset Seizure and Forfeiture For the year ended June 30, 2003 IPositive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 172,563 $ 172,563 $ I Resources (inflows): Fines and forfeitures 4,965 1,548 (3,417) IInterest earned on investments 5,194 5,370 176 Amount available for appropriation 10,159 6,918 (3,241) Fund balance, June 30, 2003 $ 182,722 $ 179,481 $ (3,241) I I I I I i I i 117 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual I Fire Protection For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ 466,467 $ 466,467 $ - Resources (inflows): I Miscellaneous 61,088 86,800 25,712 Interest earned on investments 13,882 14,307 425 , Amount available for appropriation 74,970 101,107 26,137 Charges to appropriations (outflows): I Capital outlay 438,072 438,072 Transfers out 88,451 88,451 - Total charges to appropriations 526,523 88,451 438,072 Excess of resources over (under) charges to appropriations (451,553) 12,656 464,209 Fund balance, June 30, 2003 $ 14,914 $ 479,123 $ 464,209 118 I City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Artesia Boulevard Relinquishment For the year ended June 30, 2003 IPositive Budgeted (Negative) I Amounts Final Actual Variance with Amounts Final Budget Fund balance, July 1, 2002 $ 495,372 $ 495,372 $ - I Resources (inflows): Interest earned on investments 15,096 15,589 493 IAmount available for appropriation 15,096 15,589 493 IIIFund balance, June 30, 2003 $ 510,468 $ 510,961 $ 493 119 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Lower Pier Avenue Assessment District For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 67,276 $ 67,276 $ Resources (inflows): Interest earned on investments 2,019 2,089 70 Amount available for appropriation 2,019 2,089 70 Fund balance, June 30, 2003 $ 69,295 $ 69,365 $ 70 120 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Myrtle Utility Underground Improvement For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 8,091 $ 8,091 $ Resources (inflows): Miscellaneous 1,149 1,149 Interest earned on investments 534 563 29 Amount available for appropriation Charges to appropriations (outflows): Capital outlay Total charges to appropriations Excess of resources over (under) charges to appropriations 534 1,712 1,178 15,580 - 15,580 15,580 - 15,580 (15,046) 1,712 16,758 Fund balance, June 30, 2003 $ (6,955) $ 9,803 $ 16,758 121 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Loma Utility Underground Improvement For the year ended June 30, 2003 Fund balance, July 1, 2002 Positive Budgeted (Negative) Amounts Actual Variance with Final Amounts Final Budget $ 95,468 $ 95,468 $ Resources (inflows): Interest earned on investments 3,865 2,946 (919) Amount available for appropriation 3,865 2,946 (919) Excess of resources over (under) charges to appropriations 3,865 2,946 (919) Fund balance, June 30, 2003 $ 99,333 $ 98,414 $ (919) 122 City of Hermosa Beach IStatement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Bayview Drive Underground District For the year ended June 30, 2003 IPositive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ $ - $ Charges to appropriations (outflows): Capital outlay 30,000 30,000 I Total charges to appropriations 30,000 30,000 I Excess of resources over (under) charges to appropriations (30,000) (30,000) 1 Fund balance, June 30, 2003 $ (30,000) $ (30,000) $ 1 1 1 1 1 1 1 123 1 City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual 1 Bonnie Brae Underground District For the year ended June 30, 2003 Positive Budgeted (Negative) Amounts Actual Variance with ' Final Amounts Final Budget Fund balance, July 1, 2002 $ - $ - $ Charges to appropriations (outflows): , Capital outlay 50,000 50,000 Total charges to appropriations 50,000 50,000 1 Excess of resources over (under) charges to appropriations (50,000) (50,000)1 Fund balance, June 30, 2003 $ (50,000) $ (50,000) $ 1 1 1 1 1 1 1 1 1 124 , City of Hermosa Beach 1 Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and Actual Beach Drive Underground District 1 For the year ended June 30, 2003 IPositive Budgeted (Negative) I Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2002 $ $ - $ ICharges to appropriations (outflows): Capital outlay 23,724 23,724 I Total charges to appropriations 23,724 23,724 - I Excess of resources over (under) charges to appropriations (23,724) (23,724) 1 Fund balance, June 30, 2003 $ (23,724) $ (23,724) $ - 1 1 1 1 1 1 1 1 1 1 125 This page intentionally left blank. 126 NON -MAJOR PROPRIETARY FUNDS Proposition "A" Transit Fund - Transit revenue consists primarily of Proposition A fund (the 1/2 cent sales tax for Los Angeles County transportation purposes). The City currently operates a Dial -a -Ride program, a taxi voucher program, a commuter bus and subsidizes bus passes for senior citizens and students. Proposition "C" Transit Fund - The Proposition C Fund is a fund which was added during 1992 to account for funds allocated from the voter -approved 1/2 cent sales tax. Funds must be used for transit purposes. 127 City of Hermosa Beach Combining Statement of Net Assets Non -Major Proprietary Funds For the Year Ended June 30, 2003 ASSETS Current assets: Cash and investments Interest receivable on investments Other accounts receivable Total current assets Total assets LIABILITIES Current liabilities: Accounts payable Accrued wages and compensated absences Total liabilities NET ASSETS Restricted for special projects Total net assets 128 1 1 1 Total Proposition "A" Proposition "C" Other Enterprise Transit Transit Funds $ 171,735 $ 701,494 $ 873,229 I 1,053 4,275 5,328 27,830 21,607 49,437 , 200,618 727,376 927,994 200,618 727,376 927,994 1 62,351 62,351 1 1,618 1 1,619 63,969 1 63,970 136,649 727,375 864,024 1 $ 136,649 $ 727,375 $ 864,024 1 1 1 1 1 1 1 1 City of Hermosa Beach Combining Statement of Revenues, Expenses and Changes in Net Assets Non -Major Proprietary Funds For the year ended June 30, 2003 OPERATING REVENUES: Other taxes Charges for services Miscellaneous Total operating revenues OPERATING EXPENSES: Total Proposition "A" Proposition "C" Other Enterprise Transit Transit Funds $ 289,337 $ 208,939 $ 498,276 14,381 14,381 706 706 304,424 208,939 513,363 Salaries and wages 31,676 31,676 Contractor services 271,042 103,091 374,133 Supplies 189 189 Total operating expenses 302,907 103,091 405,998 OPERATING INCOME (LOSS) 1,517 105,848 107,365 NONOPERATING REVENUES (EXPENSES): Interest earned on investments 5,647 21,367 27,014 Total nonoperating revenues (expenses) 5,647 21,367 27,014 Changes in net assets 7,164 127,215 134,379 NET ASSETS: Beginning of the year 129,485 600,160 729,645 End of the year $ 136,649 $ 727,375 $ 864,024 129 City of Hermosa Beach Combining Statement of Cash Flows Non -Major Proprietary Funds For the year ended June 30, 2003 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers/other funds Cash payments to suppliers for goods and services Cash payments to employees for services Other operating revenues Net cash provided by (used for) operating activities CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments Net cash provided (used) by investing activities Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year Ending of year RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile operating income (loss) to net cash provided (used) by operating activities: Changes in operating assets and liabilities: Interest receivable on investments Other accounts receivable Accounts payable Accrued wages and compensated absences Total adjustments Net cash provided (used) by operating activities: 130 I I I Total I Proposition "A" Proposition "C" Other Enterprise Transit Transit Funds 1 $ 297,829 $ 208,494 $ 506,323 (255,318) (149,300) (404,618) I (31,649) (31,649) 706 706 11,568 59,194 70,762 I 5,647 21,367 27,014 ' 5,647 21,367 27,014 17,215 80,561 97,776 I I 154,520 620,933 775,453 $ 171,735 $ 701,494 $ 873,229 I I $ 1,517 $ 105,848 $ 107,365 1 531 1,870 2,401 i (6,420) (2,315) (8,735) 15,913 (46,209) (30,296) 27 27 10,051 (46,654) (36,603) 11,568 $ 59,194 $ 70,762 I I I INTERNAL SERVICE FUNDS Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds. Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life. 131 City of Hermosa Beach Combining Statement of Net Assets All Internal Service Funds June 30, 2003 Insurance Fund ASSETS Equipment Replacement Fund Total Current assets: Cash and investments $ 4,058,693 $ 2,269,548 $ 6,328,241 Other accounts receivable 6,750 6,750 Deposits 80,000 80,000 Other assets 1,746 8,710 10,456 Total current assets 4,140,439 2,285,008 6,425,447 Property and equipment, net of accumulated depreciation 2,427,206 2,427,206 Total assets 4,140,439 4,712,214 8,852,653 LIABILITIES Current liabilities: Current portion of long-term liabilities Accounts payable Accrued wages and compensated absences 575,000 35,233 18,631 55,004 43,246 575,000 90,237 61,877 Total current liabilities 628,864 98,250 727,114 Long-term liabilities: Workers' compensation claims payable 1,769,131 1,769,131 General liability claims payable 573,502 573,502 Less current portion above (575,000) (575,000) Total long-term liabilities 1,767,633 1,767,633 Total liabilities 2,396,497 98,250 2,494,747 NET ASSETS Invested in capital assets, net of related debt 2,427,206 2,427,206 Unrestricted 1,743,942 2,186,758 3,930,700 Total net assets $ 1,743,942 $ 4,613,964 $ 6,357,906 132 I City of Hermosa Beach ICombining Statement of Revenues, Expenses, and Changes in Net Assets All Internal Service Funds IFor the year ended June 30, 2003 Equipment Insurance Replacement I Fund Fund Total OPERATING REVENUES: I Charges for services Miscellaneous $ 1,283,133 $ 1,051,525 $ 2,334,658 5,180 5,180 Total operating revenues 1,288,313 1,051,525 2,339,838 I OPERATING EXPENSES: I Salaries and wages 91,947 251,888 343,835 Contractor services 360,167 203,609 563,776 Supplies 462 157,537 157,999 I Claims expense 1,072,867 1,072,867 Depreciation 531,812 531,812 Total operating expenses 1,525,443 1,144,846 2,670,289 I OPERATING INCOME (LOSS) (237,130) (93,321) (330,451) INONOPERATING REVENUES (EXPENSES): Proceeds on sale of assets 18,957 18,957 ITotal nonoperating revenues (expenses) 18,957 18,957 INCOME (LOSS) BEFORE TRANSFERS (237,130) (74,364) (311,494) I Contributions of capital assets from government 31,632 31,632 Transfers in 597,469 60,147 657,616 I Transfers out (57,417) (57,417) NET INCOME (LOSS) 360,339 (40,002) 320,337 NET ASSETS IBeginning of the year 1,383,603 4,653,966 6,037,569 End of the year $ 1,743,942 $ 4,613,964 $ 6,357,906 I I I 133 City of Hermosa Beach Combining Statement of Cash Flows All Internal Service Funds For the year ended June 30, 2003 CASH FLOWS FROM OPERATING ACTIVITIES: Cash received from customers/other funds Cash payments to suppliers of goods and services Cash payments to employees for services Insurance premiums and settlements Cash received from (payments to) others Net cash provided by (used for) operating activities CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Transfers in Transfers out Net cash provided by (used for) noncapital financing activities CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Proceeds on sale of capital assets Acquisition of capital assets Net cash provided (used for) by capital and related financing activities Net increase (decrease) in cash and cash equivalents CASH AND CASH EQUIVALENTS: Beginning of year End of year RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED (USED) BY OPERATING ACTIVITIES: Operating income (loss) Adjustments to reconcile net operating income (loss) to net cash provided (used) by operating activities: Depreciation Changes in current assets and liabilities: Other accounts receivable Other assets Worker's compensation claims payable General liability claims payable Accounts payable Accrued wages and compensated absences Total adjustments Net cash provided (used) by operating activities 134 Equipment Insurance Replacement Fund Fund Total $ 1,288,234 $ 1,043,711 $ 2,331,945 (352,385) (408,139) (760,524) (96,310) (251,139) (347,449) (1,043,445) (1,043,445) 5,180 5,180 (198,726) 384,433 185,707 597,469 60,147 657,616 (57,417) (57,417) 597,469 2,730 600,199 18,957 18,957 (430,367) (430,367) (411,410) (411,410) 398,743 (24,247) 374,496 3,659,950 2,293,795 5,953,745 $ 4,058,693 $ 2,269,548 $ 6,328,241 $ (237,130) $ (93,321) $ (330,451) 531,812 531,812 5,664 (6,395) (731) (563) (1,419) (1,982) (211,698) (211,698) 241,120 241,120 8,244 (46,993) (38,749) (4,363) 749 (3,614) 38,404 477,754 516,158 $ (198,726) $ 384,433 $ 185,707 FIDUCIARY FUNDS The Agency Fund of the City was established to account for transactions related to payments for limited obligation bonds for the Lower Pier Avenue Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District and the Loma Drive Utility 135 City of Hermosa Beach Combining Statement of Fiduciary Net Assets All Agency Funds June 30, 2003 Lower Pier District Myrtle Avenue Loma Drive Redemption Assessment Assessment ASSETS Total Cash and investments $ 31,803 $ 93,726 $ 99,425 $ 224,954 Interest receivable 198 573 605 1,376 Other accounts receivable 2,899 2,577 5,476 Total assets $ 32,001 $ 97,198 $ 102,607 $ 231,806 LIABILITIES Assessment: Installment account $ 32,001 $ 97,198 $ 102,607 $ 231,806 Total liabilities $ 32,001 $ 97,198 $ 102,607 $ 231,806 136 1 City of Hermosa Beach Combining Statement of Changes in Assets and Liabilities All Agency Funds IFor the year ended June 30, 2003 IBalance Balance July 1, 2002 Additions Deletions June 30, 2003 1 ASSETS Lower Pier District Redemption Fund: I Cash and investments $ 29,870 $ 46,690 $ (44,757) $ 31,803 Interest receivable 310 198 (310) 198 Other accounts receivable 1,598 (1,598) I Myrtle Avenue Assessment Fund: Cash and investments 83,001 135,267 (124,542) 93,726 Interest receivable 843 573 (843) 573 IOther accounts receivable 3,074 2,899 (3,074) 2,899 Loma Drive Assessment Fund: I Cash and investments 94,929 167,601 (163,105) 99,425 Interest receivable 964 605 (964) 605 Other accounts receivable 2,515 2,577 (2,515) 2,577 1 Total assets $ 217,104 $ 356,410 $ (341,708) $ 231,806 LIABILITIES 1 Lower Pier District Redemption Fund: Assessment installment account $ 31,778 $ 46,888 $ (46,665) $ 32,001 1 Myrtle Avenue Assessment Funds: Assessment installment account 86,918 138,739 (128,459) 97,198 I Loma Drive Assessment Fund: Assessment installment account 98,408 170,783 (166,584) 102,607 Total liabilities $ 217,104 $ 356,410 $ (341,708) $ 231,806 1 1 1 1 1 1 137 This page intentionally left blank. 138 CAPITAL ASSETS USED IN THE OPERATING OF GOVERNMENTAL FUNDS 139 City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule By Source* June 30, 2003 GOVERNMENTAL FUNDS CAPITAL ASSETS: Land Buildings and improvements Improvements other than buildings Machinery and equipment Vehicles Construction in progress Infrastructure Total governmental funds capital assets Accumulated depreciation Total governmental funds capital assets, net INVESTMENTS IN GOVERNMENTAL FUNDS CAPITAL ASSETS BY SOURCE: State grants General fund revenues Special revenue funds revenues Donated assets Total governmental funds capital assets Accumulated depreciation Total governmental funds capital assets, net * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 140 1 1 1 1 $ 17,676,802 3,906,022 5,004,018 1,772,240 6,186 3,523,017 34,822,539 66,710,824 1 (16,703,208) $ 50,007,616 $ 46,601 1 27,311,966 39,044,331 307,926 66,710,824 (16,703,208) $ 50,007,616 1 1 1 1 1 1 1 1 City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule by Function and Activity* June 30, 2003 Land Buildings Improvements Machinery and Other than and Construction Structures Buildings Equipment Vehicles Infrastructure in Progress Total GOVERNMENTAL FUNDS CAPITAL ASSETS General government $ 60,000 $ 2,556,997 $ 63,481 $ 378,056 $ 6,186 $ 3,064,720 Public safety 191,855 455,043 913,708 1,560,606 Community development 137,474 16,491 153,965 Culture and recreation 650,000 676,536 102,578 124,314 1,553,428 Public works 16,966,802 480,634 4,245,442 339,671 $ 34,822,539 $ 3,523,017 60,378,105 Total governmental funds capital assets 17,676,802 3,906,022 5,004,018 1,772,240 6,186 34,822,539 3,523,017 66,710,824 Accumulated depreciation (1,370,480) (2,048,250) (958,915) (12,325,563) (16,703,208) Total governmental funds capital assets $ 17,676,802 $ 2,535,542 $ 2,955,768 $ 813,325 $ 6,186 $ 22,496,976 $ 3,523,017 $ 50,007,616 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. Generally, the capital assets of internal service funds are included as governmental activities in the statement of net assets. 141 City of Hermosa Beach Capital Assets Used in the Operation of Governmental Funds Schedule of Changes in Capital Assets - By Function by Activity* For the year ended June 30, 2003 Capital Capital Assets Inventory Assets July 1, 2002 Additions Deletions Adjustment June 30, 2003 Function and Activity: General government $ 2,707,266 $ 371,677 $ (14,223) $ 3,064,720 Public safety 1,638,448 99,047 (176,889) 1,560,606 Community development 152,925 1,040 153,965 Culture and recreation 1,526,701 26,727 1,553,428 Public works 22,027,336 3,969,845 (140,567) $ 34,521,491 60,378,105 Total governmental funds capital assets 28,052,676 4,468,336 (331,679) 34,521,491 66,710,824 Accumulated depreciation (1,450,013) 113,127 (15,366,322) (16,703,208) Total governmental funds capital assets, net $ 28,052,676 $ 3,018,323 $ (218,552) $ 19,155,169 $ 50,007,616 * This schedule presents only the capital asset balances related to governmental funds. Accordingly, the capital assets reported in the internal service funds are excluded from the above amounts. 142 STATISTICAL SECTION mg mu r um mu mu um um me gm um— mu — —— um r ow STATISTICAL SECTION ® woa•saxepuioad•mmm 1.616 -Zit' -008 said V sexapui leuoissa;o,id 1E11 IMO MIR NMI INN MI MIMI Ell Mil NMI MIN =I NMI Mill IIIIII ONO Oil MIN INN I I I I I I I I I ISTATISTICAL SECTION (Unaudited) I I I I I I I I I 143 City of Hermosa Beach Government -Wide Revenues June 30, 2003 Last two fiscal years (Unaudited) PROGRAM REVENUES GENERAL REVENUES Charges Operating Capital for Grants and Grants and Fiscal Year Services Contributions Contributions Taxes Grants and Contributions Not Restricted to Specific Investment Programs Earnings Other Total 2001-2002 $ 5,233,107 $ 596,278 $ 1,678,235 $ 12,924,320 $ 1,146,371 $ 797,918 $ 567,261 $ 22,943,490 2002-2003 5,895,438 642,214 475,933 13,454,981 3,111,569 535,167 411,470 24,526,772 Source : City of Hermosa Beach - Finance Department GASB Statement 34 implemented fiscal year 2003 144 City of Hermosa Beach Government -Wide Expense by Function June 30, 2003 Last two fiscal years (Unaudited) Culture Proposition Proposition Legislative General Public Community and Public Downtown "A" "C" Fiscal Year and Legal Government Safety Development Recreation Works Depreciation Enhancement Parking Transit Transit Total 2001-2002 $ 823,736 $ 1,685,183 $ 9,598,652 $ 900,709 $ 900,851 $ 4,529,164 $ 1,759,570 $ 933,796 $1,577,320 $ 263,641 $ 443,344 $23,415,966 2002-2003 810,589 1,100,565 9,962,500 927,174 944,267 3,063,912 1,981,825 909,137 1,525,371 302,907 103,091 21,631,338 Source : City of Hermosa Beach - Finance Department GASB Statement 34 implemented fiscal year 2003 145 1 City of Hermosa Beach General Governmental Revenues by Source 1 June 30, 2003 Last Ten Fiscal Years I (Unaudited) Interest 1 Earned on Investments I Property and Use of Charges and Licenses Fines and Money and Inter- for I Fiscal Year Other Taxes and Permits Forfeitures Property governmental Services Other Total 1993-1994 $ 8,594,929 $ 124,078 $ 179,356 $ 903,979 $ 1,245,037 $ 389,859 $ 44,029 $ 11,481,267 1994-1995 8,640,996 139,758 117,384 1,032,825 2,062,111 467,405 156,519 12,616,998 1995-1996 9,484,209 183,533 124,268 1,043,782 3,100,743 660,850 474,014 15,071,399 1996-1997 8,901,449 275,424 132,334 890,799 1,717,746 755,949 845,830 13,519,531 1997-1998 9,472,541 484,154 163,001 883,387 1,738,821 1,058,616 774,839 14,575,359 I 1998-1999 9,993,562 567,607 209,785 938,892 6,081,589 1,184,003 394,383 19,369,821 1999-2000 10,754,339 558,456 205,822 1,055,608 3,039,122 2,246,195 4,653,620 22,513,162 2000-2001 11,801,668 579,608 185,736 1,434,124 2,816,543 1,203,290 826,154 18,847,123 I 2001-2002 12,574,773 445,673 225,653 945,232 3,257,239 1,108,816 645,600 19,202,986 2002-2003 13,060,204 571,682 278,334 2,635,498 2,175,932 1,254,917 645,335 20,621,902 I Source : City of Hermosa Beach - Finance Department I 1 1 1 1 1 1 1 146 I City of Hermosa Beach General Governmental Expenditures by Function June 30, 2003 I Last Ten Fiscal Years (Unaudited) I Culture General Public Community and Public Debt Capital I Fiscal Year Government Safety Development Recreation Works Service Outlay Total 1993-1994 $ 3,127,429 $ 5,597,450 $ 498,633 $ 685,853 $ 2,399,607 $ 707,690 $ - $ 13,016,662 I 1994-1995 1,463,336 6,382,332 437,203 731,466 2,020,106 534,211 1,191,483 12,760,137 1995-1996 1,366,906 6,443,474 490,673 475,734 2,158,067 3,130,579 2,713,833 16,779,266 1996-1997 1,490,253 6,809,657 699,250 497,993 2,174,626 11,152 3,603,009 15,285,940 I 1997-1998 1,618,188 7,202,300 665,860 579,692 2,270,463 10,114 1,009,505 13,356,122 1998-1999 1,691,483 7,597,552 756,665 662,438 2,344,034 5,836 6,434,628 19,492,636 1999-2000 1,568,591 7,872,772 814,392 744,245 2,481,209 5,608,405 19,089,614 I 2000-2001 1,743,773 8,997,038 866,389 725,387 2,582,510 3,406,953 18,322,050 2001-2002 1,913,892 9,186,446 888,262 888,734 2,975,944 3,486,133 19,339,411 2002-2003 2,077,463 10,040,618 951,856 966,621 3,082,096 4,281,144 21,399,798 I Source : City of Hermosa Beach - Finance Department I 147 1 City of Hermosa Beach Assessed and Estimated Actual Value of Taxable Property 1 June 30, 2003 Last Ten Fiscal Years (Unaudited) Ratio of Net Assessed Value I to Estimated Secured Unsecured Less Net Assessed Estimated Percentage Actual Value I Fiscal Year Property Property Exemptions Value Valuation Increase (%) 1993-1994 $ 1,650,477,510 $ 19,319,218 $ 28,473,523 $ 1,641,323,205 $ 1,669,796,728 2% 98.29% 1994-1995 1,677,528,958 19,406,553 27,445,557 1,669,489,954 1,696,935,511 2% 98.38% I 1995-1996 1,682,602,183 17,400,969 29,395,303 1,670,607,849 1,700,003,152 0.18% 98.27% 1996-1997 1,704,314,436 19,059,312 30,812,333 1,692,561,415 1,723,373,748 1.4% 98.21% 1997-1998 1,737,072,254 20,195,505 31,168,694 1,726,099,065 1,757,267,759 2.0% 98.23% I 1998-1999 1,826,726,032 22,813,132 31,150,694 1,818,388,470 1,849,539,164 5.3% 98.32% 1999-2000 2,014,926,680 23,889,046 29,734,340 2,009,081,386 2,038,815,726 10.2% 98.54% I 2000-2001 2,196,702,270 23,249,949 30,692,035 2,189,260,184 2,219,952,219 8.88% 98.62% 2001-2002 2,399,510,371 26,313,475 26,277,711 2,399,546,135 2,425,823,846 9.27% 98.92% 2002-2003 2,596,802,111 29,323,836 29,039,328 2,597,086,619 2,626,125,947 8.26% 98.89% I Source : County of Los Angeles Auditor -Controller Note : Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. 1 1 1 1 1 1 148 ' City of Hermosa Beach 1 Property Tax Rates and Tax Levies - All Direct and Overlapping Governments (per $100 of assessed valuation) ' June 30, 2003 - Last Ten Fiscal Years (Unaudited) r Metropolitan Los Angeles Flood Water IFiscal Year General County Control District Total 1993-1994 1.000000 0.001713 0.004212 0.008900 1.013112 I 1994-1995 1.000000 0.001993 0.006041 0.008900 1.014941 1995-1996 1.000000 0.001814 0.000963 0.008900 1.009863 1996-1997 1.000000 0.001604 0.001991 0.008900 1.011677 I 1997-1998 1.000000 0.001584 0.002197 0.008900 1.012495 1998-1999 1.000000 0.001422 0.001765 0.008900 1.012087 1999-2000 1.000000 0.001451 0.001953 0.008900 1.012304 1 2000-2001 1.000000 0.001128 0.001073 0.007700 1.009901 2001-2002 1.000000 0.001033 0.000881 0.006700 1.008614 2002-2003 1.000000 0.001033 0.000881 0.006700 1.008614 1 Source : County of Los Angeles Auditor -Controller Note : Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. 1 1 1 1 1 149 City of Hermosa Beach Property Tax Levies and Collections , June 30, 2003 Last Ten Fiscal Years (Unaudited) Total Total Percentage I Current Current of Levy Fiscal Year Levy Collection Collected I 1993-1994 $ 3,296,519 $ 3,027,168 91.83% 1994-1995 3,321,595 3,038,420 91.47% III1995-1996 3,337,288 3,093,600 92.70% 1996-1997 3,362,402 3,149,979 93.68% 1997-1998 3,434,310 3,252,801 94.71% I 1998-1999 3,623,653 3,442,675 95.01% 1999-2000 4,002,324 3,808,235 95.15% 2000-2001 4,370,463 4,239,808 97.01% ' 2001-2002 4,790,920 4,576,910 95.53% 2002-2003 5,193,796 5,017,148 96.60% I Source : County of Los Angeles Auditor -Controller 150 City of Hermosa Beach Computation of Legal Debt Margin June 30, 2003 (Unaudited) Total assessed value of all real and personal property $ 2,626,125,947 Legal debt limit - 15% of total assessed valuation $ 393,918,892 (a) Amount of debt applicable to limit None (b) Legal debt margin $ 393,918,892 Percentage of legal debt limit authorized 0% Source : City of Hermosa Beach - Finance Department (a) Per California Government Code Section 43605 (b) The City has no debt payable from taxes levied upon property in the City. City of Hermosa Beach Statement of Direct and Overlapping Debt , June 30, 2003 (Unaudited) 2002-2003 Assessed Valuation : Percent Net I Gross Bonded Applicable Bonded DIRECT DEBT : Debt Balance to City Debt I Hermosa Beach Elementary School District 2002 $ 9,579,401 100.000% $ 9,579,401 TOTAL DIRECT DEBT: 9,579,401 I OVERLAPPING DEBT: Los Angeles County Detention Facilities 1987 Debt Service $ 30,225,000 0.442% 133,723 111 Los Angeles County Flood Control Storm Drain Debt Service 10,110,000 0.405% 40,909 Los Angeles County Flood Control Refunding Bonds 1993 Debt Service 845,000 0.405% 3,419 I West Basin Water District Debt Service* 475,265,000 0.457% 2,169,725 El Camino Community College District 2002 Debt Service 63,700,000 5.267% 3,354,984 TOTAL OVERLAPPING DEBT 5,702,760 I TOTAL DIRECT AND OVERLAPPING DEBT $ 15,282,161 2002/03 Net Assessed Valuation : $ 2,597,086,619 Debt to Assessed Valuation Ratios : Direct Debt 0.37% I Overlapping Debt 0.22% Total Debt 0.59% I * This fund is a portion of a larger agency, and is responsible for debt in areas outside the City. Source : HdL Coren & Cone, Los Angeles County Assessor Combined 2002/2003 Lien Date Tax Rolls This report reflects general obligation debt which is being repaid through voter -approved indebtedness. It excludes revenue, mortgage revenue, tax allocation bonds, interim financing obligations, non -bonded capital lease obligations, and certificates of participation. ' 152 ' 1 City of Hermosa Beach 1 Demographic Statistics June 30, 2003 I Last Ten Fiscal Years (Unaudited) I(b) (c) (d) (e) 1 (a) Per Capita Persons per Unemployment School Fiscal Year Population Income Household Rate (%) Enrollment 1993-1994 18,714 2.023 2.6 778 I 1994-1995 18,598 2.034 1.9 760 1995-1996 18,681 2.014 2.1 887 1996-1997 18,919 2.021 1.8 1,324 1 1997-1998 19,098 2.038 1.6 1,346 1998-1999 19,401 2.059 1.4 1,384 I 1999-2000 19,631 2.082 1.5 1,420 2000-2001 18,912 $ 54,244 2.112 1.4 1,430 2001-2002 19,175 1.995 1.4 1,471 I 2002-2003 19,365 2.019 1.7 1,489 Data Source: (a) State of California Department of Finance, estimated population. ' (b) U.S. Department of Commerce, Bureau of the Census, per capita income available every ten years as part of national census. Census 2000. (c) State of California Department of Finance ' (d) State of California Employment Development Department. Expressed as a percentage, estimate based on ratio to County movement since 1980 and 1990 Census. (e) State Department of Education. 1 1 1 1 1 1 1 153 I City of Hermosa Beach Construction Value, Property Value and Bank Deposits I June 30, 2003 Last Ten Fiscal Years I (Unaudited) Residential Commercial I Number of Number of Total Bank Deposits I Fiscal Year Permits Valuation Permits Valuation Assessed (in thousands) 1993-1994 259 $ 3,085,519 47 $ 1,124,332 $ 1,669,796,728 $ 128,161 I 1994-1995 236 3,681,282 71 1,296,815 1,696,935,511 129,866 1995-1996 316 7,643,660 75 1,840,624 1,700,003,152 135,486 1996-1997 363 12,034,307 67 4,508,672 1,723,373,748 146,695 II 1997-1998 612 29,728,509 73 3,977,221 1,757,267,759 153,236 1998-1999 594 37,648,012 55 6,857,053 1,849,539,164 166,610 I 1999-2000 476 27,553,549 57 6,044,503 2,038,815,726 183,910 2000-2001 540 32,136,129 56 7,402,324 2,219,952,219 190,111 2001-2002 591 19,260,802 43 2,142,566 2,425,823,846 194,276 I 2002-2003 630 23,174,277 65 2,499,590 2,626,125,947 210,669 Source : Construction values - City of Hermosa Beach Community Development Department I Bank Deposits - Federal Deposit Insurance Corporation (includes Savings and Loans) I I I I I I I I 154 City of Hermosa Beach ' Schedule of Insurance June 30, 2003 (Unaudited) I Annual Company &Policy Number Policy Period Limits &Coverages Premium Continental Casualty 7-1-02 through 6-30-03 Statutory Excess Workers' $64,570.00 W-128587046 Compensation to $10 million I$500,000 S.I.R. Independent Cities Risk 7-1-02 through 6-30-03 Excess Liability Insurance $136,698.00 I Management Authority $250,000 S.I.R. $19 million limit for bodily injury, property damage, personal injury, or IPublic Officials' E&O. Royal Insurance Co. 7-1-02 through 6-30-03 Auto Physical damage including $12,042.00 I PT2S464149 Comprehensive & Collision coverage with $5,000 deductible for high dollar value vehicles. I Travelers Indemnity Co. of Ill. 7-1-02 through 6-30-03 " All-risk" physical loss or damage to $22,000.00 real and personal property, EDP I equipment, media, and extra expense, rents, and mobile equipment. Exdudes earthquake and flood. ISupplemental policy for earthquake, $13,501.00 flood, and loss of income on the I parking structure. The Hartford 11-7-02 through 11-7-03 $100,000 public official bond for $400.00 IFinance Director. The Hartford 11-24-02 through 11-24-03 $100,000 public official bond for $400.00 I City Treasurer. Fidelity & Deposit 11-12-99 through 11-12-03 $10,000 public official bond for City $355.00 Clerk. (4 year period) I Fidelity & Deposit 7-1-01 through 7-1-04 $25,000 public employee dishonesty $1,617.00 bond with $2,500 deductible. (3 year period) I The Hartford 1-3-03 through 1-3-06 $100,000 public official bond for City $1,040.00 Manager. (3 year period) 111 Source : City of Hermosa Beach - Personnel Department 155 City of Hermosa Beach Top Property Taxpayers June 30, 2003 (Unaudited) Owner (Number of Parcels) Assessed % of Total Value Assessed Valuation International Church of The Four Square (43) $ 13,787,048 0.52% Regency Centers Limited Partnership (7) 12,469,183 0.47% Playa Pacifica Limited (2) 11,574,185 0.44% Beta Group (2) 10,770,000 0.41% Robert J. & A. Ranae Desantis (1) 10,404,000 0.40% Cheng Yi & Yin Ying Chang (1) 7,214,610 0.27% SII Trust Schuler Investment Corporation (1) 5,988,216 0.23% Century TCI California Comm LP (2) 5,922,914 0.23% Robert S. Corry (9) 5,743,940 0.22% Roger E. Bacon (5) 5,706,996 0.22% Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls City of Hermosa Beach Top 25 Sales Tax Producers * June 30, 2003 (Unaudited) Business Name Albertsons Aloha Sharkeez Audi Leasing Ltd Bentley Leasing Becker Surfboards Caseys Premium Cars Chase Manhattan Auto Finance Classic Tile & Design Club Sushi E T Surfboards Efram's Mobil Financial Services Vehicle Trust Hennesseys Tavern Jama Auto House Learned Lumber May Mohit Gas Station & Mini Mkt Okells Fireplace Pacific Volkswagen Patrick Molloys Porsche Leasing Ralphs Rocky Cola Say On Drugs South Bay B M W Spyderboards Vons Percent of City Total Paid By Top 25 Accounts = Approximately 60.15% Source : Hinderliter, de Llamas & Associates, State Board of Equalization * Businesses Listed Alphabetically Period: April 2002 through March 2003 Business Category Grocery Stores with Liquor Restaurants with Beer and Wine Auto Lease Sporting Goods/Bike Stores Used Automotive Dealers Auto Lease Lumber/Building Materials Restaurants with Liquor Sporting Goods/Bike Stores Service Stations Auto Lease Restaurants with Liquor Used Automotive Dealers Lumber/Building Materials Service Stations Home Furnishings New Motor Vehicle Dealers Restaurants with Liquor Auto Lease Grocery Stores with Liquor Fast Food Drug Stores New Motor Vehicle Dealers Specialty Stores Grocery Stores with Liquor I City of Hermosa Beach Major Employers* I June 30, 2003 (Unaudited) I Name Type of Business I Aloha Sharkeez Restaurant with Liquor I Comedy & Magic Club Entertainment Hennessey's Tavern Restaurant with Liquor I Pacific Volkswagon New Motor Vehicle Dealer, Auto Repair Patrick Molloy's Restaurant with Liquor Pointe 705 Restaurant with Liquor I Rocky Cola Cafe Fast Food Shorewood Realtors, Inc. Real Estate South Bay BMW New Motor Vehicle Dealer, Auto Repair I Vons Grocery Store with Liquor Source : Cityof Hermosa Beach - Finance Department I P * Businesses Listed Alphabetically I I I I I I I I I 158 1 City of Hermosa Beach I Taxable Sales by Category (in thousands) June 30, 2003 Last Ten Calendar Years (Unaudited) Sales 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Retail Stores : IApparel Stores $ 2,017 $ 2,873 $ 3,074 $ 4,179 $ 2,351 $ 6,269 $ 3,360 $ 2,892 $ 3,114 $ 2,781 Food Stores 15,824 17,529 17,955 18,662 19,496 19,953 19,342 20,076 19,874 19,494 Packaged Liquor Stores 1,808 1,728 1,610 1,531 2,213 2,169 2,348 2,731 2,416 2,104 Eating and Drinking Places 27,766 30,499 32,631 35,252 40,371 43,981 48,815 52,866 55,921 58,192 ' Home Furnishing and Appliances 1,636 1,892 2,145 3,122 3,589 3,452 4,620 6,109 5,235 5,662 Building Materials and Farm Tools 7,517 8,663 8,799 9,051 9,704 13,197 12,580 12,403 12,406 15,284 Automobile Dealers and Supplies 24,968 24,584 25,532 30,914 41,852 41,005 60,655 83,096 91,434 74,953 IService Stations (a) (a) (a) (a) 5,893 5,258 (a) (a) (a) (a) Other Retail Stores 22,710 23,498 23,646 24,614 15,684 21,628 27,270 33,522 30,705 21,270 I Total retail stores 104,246 111,266 115,392 127,325 141,153 156,912 178,990 213,695 221,105 199,740 All Other Outlets 16,774 16,760 18,283 18,633 27,903 27,850 23,357 23,309 23,659 28,058 Total all outlets $ 121,020 $ 128,026 $ 133,675 $ 145,958 $ 169,056 $ 184,762 $ 202,347 $ 237,004 $ 244,764 $ 227,798 Source : State Board of Equalization. (a) Due to limited number of businesses m this category, sales for this category are confidential - they are included in other retail. 1 1 1 1 1 1 1 159 City of Hermosa Beach Miscellaneous Statistics June 30, 2003 (Unaudited) Date of Incorporation January 14,1907 Form of Government Council -Manager Number of Employees (excluding police and fire) : Full-time 141 Part-time 18 Area in square miles 1.3 Hermosa Beach facilities and services: Miles of Streets 40 Number of Street Lights (city owned) 588 Number of Parking Meters 1,611 Culture and Recreation: Community Theatre 1 Parks 20 Park acreage 21.70 Beach acreage 36.52 Hermosa Valley Green Belt (open space park) acreage 19.50 Fire Protection: Number of stations 1 Number of firefighters and paramedics 20 Police Protection: Number of stations 1 Number of sworn officers 39 Number of law violations: Physical arrests 1,105 Traffic violations 3,669 Parking violations 46,342 Sewerage System: Miles of sanitary sewers 34 Linear feet of storm drains 6,011 Land Use Statistics: Parcels1 6,881 Housing Units2 9,902 Building permits issued 695 Facilities and services not included in the reporting entity: Education: Number of elementary schools (2 public, 2 private) Cable Television System: Miles of service Source : City of Hermosa Beach - Finance Department 1 HdL Coren & Cone 2 State of California Department of Finance 160 4 73.46