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HomeMy WebLinkAbout01/26/16Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0098 Honorable Mayor and Members of the Hermosa Beach City Council Study Session of January 26, 2016 PLAN HERMOSA (GENERAL PLAN/LOCAL COASTAL PROGRAM) CITY COUNCIL UPDATE AND REVIEW PROCESS (Community Development Director Ken Robertson) Recommended Action: The focus of this study session is three-fold: ·Provide the City Council and community members with a brief overview of the process undertaken to develop the first draft of PLAN Hermosa; ·Request input from City Council and the public on the topics to prioritize for discussion and recommendations by each of the City’s Commissions (Planning, Public Works, Parks + Recreation, and Emergency Preparedness) at future Commission meetings; and ·Remind City Council and the community about upcoming opportunities to participate. Background: In July 2013, the City of Hermosa Beach initiated the process of updating and integrating the City’s General Plan and Local Coastal Program, collectively referred to as PLAN Hermosa. The City has received two grants for this effort, from the Strategic Growth Council for a ‘Comprehensive Blueprint for Sustainability and a Low Carbon Future,’ and from the California Coastal Commission for Local Coastal Program Assistance. The work products prepared for PLAN Hermosa thus far, including background reports, issue papers, and community engagement results are available on the City’s webpage at <http://www.hermosabch.org/index.aspx?page=767>. Previous activities as well as plans already adopted by the City and other background resources may also be reviewed at this webpage. In December 2015, an important milestone in the process was achieved: the Public Review Draft of PLAN Hermosa was made available to the community for review, input, and feedback. While comment and input will be encouraged throughout the process up through City Council adoption, input provided before February 25, 2016 will be considered in the Public Hearing Draft presented to Hermosa Beach Printed on 1/21/2016Page 1 of 6 powered by Legistar™ Staff Report REPORT 16-0098 the City’s Commissions and Council. Community Engagement in the PLAN Hermosa update process Central to the creation of PLAN Hermosa has been an extensive community engagement process to ensure the PLAN reflects the community’s vision for the future of Hermosa Beach. To date, the City and consultant team have engaged several hundred community members through workshops, an educational series, online surveys, and study sessions with City Council and Planning Commission. The City has also utilized newsletters, e-notify, the City website, web and print ads in local papers, and other means to communicate with the community about the process. For nearly two years, a community working group comprised of approximately 15 Hermosa Beach residents convened on approximately 16 occasions to provide input on the community engagement process and serve as a sounding board in development of PLAN Hermosa. The working group is comprised of Hermosa Beach residents, and includes diverse representation from many City Commissions, businesses, and local organizations. PLAN Hermosa Key Topics and Concepts Provided below is a list of the topics covered by PLAN Hermosa organized by element (or chapter) and a summary of which topics are within the purview of each Commission (organized into primary and secondary focus). Legend Primary Focus Secondary Focus EPAC Parks + Recreation Public Works Planning Governance Decision -making and Leadership Civic Engagement Technology + Innovation Community Representation Regional Collaboration Land Use + Design Land Use Designations Character Areas Public Realm Design Community Faciliti es Coastal Priority Uses Siting Renewable Energy Uses Historic + Cultural Resources Public Art + Design Mobility Mobility System + Network Complete + Living Streets Efficient Parking Management Low Carbon Transportation Integrated Transit System Traffic Safety Enhancements Commercial Goods Movement Sustainability + Conservation Greenhouse Gas Emissions Air Quality Energy Resources Green Building Water Conservation Solid Waste + Recycling Regional Geology Soil Erosion Mineral Resources Parks + Open Space Community Facilities Recreationa l Programming Access to Parks, Schools + Facilities Hermosa Beach Printed on 1/21/2016Page 2 of 6 powered by Legistar™ Staff Report REPORT 16-0098 Legend Primary Focus Secondary Focus EPAC Parks + Recreation Public Works Planning Governance Decision -making and Leadership Civic Engagement Technology + Innovation Community Representation Regional Collaboration Land Use + Design Land Use Designations Character Areas Public Realm Design Community Faciliti es Coastal Priority Uses Siting Renewable Energy Uses Historic + Cultural Resources Public Art + Design Mobility Mobility System + Network Complete + Living Streets Efficient Parking Management Low Carbon Transportation Integrated Transit System Traffic Safety Enhancements Commercial Goods Movement Sustainability + Conservation Greenhouse Gas Emissions Air Quality Energy Resources Green Building Water Conservation Solid Waste + Recycling Regional Geology Soil Erosion Mineral Resources Parks + Open Space Community Facilities Recreationa l Programming Access to Parks, Schools + Facilities Hermosa Beach Printed on 1/21/2016Page 3 of 6 powered by Legistar™ Staff Report REPORT 16-0098 Legend Primary Focus Secondary Focus EPAC Parks + Recreation Public Works Planning Governance Decision -making and Leadership Civic Engagement Technology + Innovation Community Representation Regional Collaboration Land Use + Design Land Use Designations Character Areas Public Realm Design Community Faciliti es Coastal Priority Uses Siting Renewable Energy Uses Historic + Cultural Resources Public Art + Design Mobility Mobility System + Network Complete + Living Streets Efficient Parking Management Low Carbon Transportation Integrated Transit System Traffic Safety Enhancements Commercial Goods Movement Sustainability + Conservation Greenhouse Gas Emissions Air Quality Energy Resources Green Building Water Conservation Solid Waste + Recycling Regional Geology Soil Erosion Mineral Resources Parks + Open Space Community Facilities Recreationa l Programming Access to Parks, Schools + Facilities Coastal Access Beach Visitors Special Events Natural Habitat + Wildlife Public Safety Coastal + Natural Hazards Climate Change Impacts Emergency Preparedness Fire + Police Protection Hazardous Materials Crime + Safety Noise + Vibration Infrastructure Roads Sewer System Storm Drain age Water Service + Hydrology Water Quality Utilities Telecommunications Fiber -Optic Infrastructure Legend: Primary Focus Secondary Focus City Commissions Priority Topics for Future Discussion On January 25, 2016, the City’s Commissions will hold a joint study session to discuss which topics to prioritize or discuss in more detail based on the following questions: For each Commission, we would like to request that you rank/prioritize the topics or policy concepts you would like to discuss in more detail when we return to your Commission in a study session or public hearing. Please let us know: 1.Whether there are other topics identified above that you feel should be added as a primary or secondary focus of your Commission? Hermosa Beach Printed on 1/21/2016Page 4 of 6 powered by Legistar™ Staff Report REPORT 16-0098 2.Which topics identified above that you feel are most important to talk about in a greater level of detail? 3.Is there specific information you feel is critical to discussing and making recommendations on the various topics for your Commission (state regulations or guidance, case studies, community outreach results, best practices or implemented projects in Hermosa, etc.)? For the Planning Commission, in addition to the questions above, since you have purview over the entirety of the document, we'd like to request that you: 4.Consider what input and recommendations you would like to have from the other Commissions before making a recommendation to the City Council? 5.Whether you’d prefer to focus on those elements which other Commissions are not reviewing or give an equal level of attention to all elements? For City Council Discussion: •Which topics do you feel are most important to receive input and advice from your Commissions? •Based on the Commissions’ recommendations from the January 25, 2016 Joint Commission Study Session, are there additional topics you'd like to make sure staff/consultants or the Commissions prioritize, study in more detail, conduct focused outreach on, or make specific recommendations on? (Note: An addendum will be provided to identify which topics were identified as a priority by the Commissions.) Upcoming Community Engagement Opportunities In the coming months, there will be several opportunities for the community to participate in making sure the PLAN articulates the community's desired vision for the future. Unless otherwise noted*, events will be held at City Hall in Council Chambers during regularly scheduled evening meetings. Additional meeting information will be posted on the City’s website as meeting dates and times are finalized. •January 25, 2016 (7 PM) - Joint Commissions Study Session •January 26, 2016 (6 PM) - City Council Study Session •February 5-6, 2016 (all day) - Community Open House + Walking Tours* •March 15, 2016 - Planning Commission Study Session •April 5, 2016 - Parks and Recreation Commission Hearing •April 19, 2016 - Planning Commission Study Session Hermosa Beach Printed on 1/21/2016Page 5 of 6 powered by Legistar™ Staff Report REPORT 16-0098 •May 2, 2016 - Emergency Preparedness Advisory Committee Hearing •May 17, 2016 - Planning Commission Public Hearing(s) •May 18, 2016 - Public Works Commission Hearing •May 24, 2016 - City Council Study Session •June 14 and 28, 2016- City Council Public Hearing(s) *Walking Tours will occur in various locations throughout city Respectfully Submitted by: Ken Robertson, Community Development Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 6 of 6 powered by Legistar™ From: "Robert Fortunato" <fortunato@forstrategy.com> To: "Mayor Carolyn Petty" <cpetty@hermosabch.org>, "Hany Fangary" <hfangary@hermosabch.org>, "Justin Massey" <jmassey@hermosabch.org>, "Jeff Duclos" <jduclos@hermosabch.org> Cc: "Tom Bakaly" <tbakaly@hermosabch.org>, "Ken Robertson" <krobertson@hermosabch.org>, "Kristy Morris" <kmorris@hermosabch.org>, "Dency Nelson" <DLN52@verizon.net>, "Philip Friedl" <p_friedl@yahoo.com>, "George Schmeltzer" <g.j.schmeltzer@att.net>, "Stacey Armato" <staceyarmato@gmail.com>, "Marie Rice" <marierice@gmail.com>, "Elaine Doerfling" <edoerfling@hermosabch.org> Subject: Tonight's PLAN review Elaine, Please enter the following into the record for tonight's meeting. Honorable Mayor Petty, City Council and Staff, Many of us worked hard to get the $410k from the Strategic Growth Council to do a Carbon Neutral overlay to the general plan. In last nights presentation of the PLAN, Carbon Neutrality was only mentioned in passing. That is disingenuous to the intention of the Strategic Growth Council that is giving us the funding to do this work. Additionally, the presentation did not mention of the Brendle group report, commissioned by the city, that proves that the CN opportunity can bring our city hundreds of millions of dollars to pay for our crumbling infrastructure. The PLAN needs to be visionary and aspirational if it is to inspire action and last for the intended 20 - 30 years. The current plan falls short on vision and its ability to differentiate our city vs our neighboring cities that we compete with for tax dollars and incentives. I can understand that the previous council was not calibrated to understand or support this, and that may be why CN has been underplayed historically. But we are now in a different place with two important elections behind us there is an opportunity to maximize the potential of this for our city. Carbon Neutrality is in the PLAN as a subheading and the timeline is 2040. That gives HB no strategic advantage and the CN section is more cautionary than ambitious. As you can see on page five of the attached Brendle Group report, making this a focus with specific actions including a 2030 goal for the community will mean a savings of more than $36 million dollars per year. That would pay for the infrastructure costs in less than 4 years and create an annuity for the next 40 years. Please take the time in tonight's meeting to make a plan to re-calibrate this PLAN in a way that will bring prosperity, better health and a bright future to our city. Respectfully, Robert Fortunato Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0092 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 UPDATE ON THE REDONDO BEACH WATERFRONT PROJECT - EIR COMMENTS Attachments: Redondo Beach Waterfront DEIR - Hermosa Beach Comment Letter Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™  H20 Hotel @ 1429 Hermosa Ave – construction commencing 1st quarter 2016; 11-24-15 City Council report link: https://hermosabeach.legistar.com/LegislationDetail.aspx?ID= 2521469&GUID=C946C473-135F-4C53-BD39-460A28DFC4AB http://www.hermosabch.org/index.aspx?page=358  Hermosa Ave Street Improvement Project – construction commencing Jan 2018; see Downtown Core Revitalization Strategy for project description http://www.hermosabch.org/index.aspx?page=775  OTO hotel @ 11th & Beach Drive: project on hold; see 9-9-14 City Council report for project description http://www.hermosabch.org/index.aspx?page=358  Transpacific Cable on beach west of 25th St & on beach west of Neptune St – see NOP/IS posted on City website for project description http://www.hermosabch.org/index.aspx?page=504  Skechers @ 30th & PCH: construction commencing Jan 2017 in MB & Sept 2017 in HB; see NOP/IS posted on City website for project description http://www.hermosabch.org/index.aspx?page=504  Pier & Strand Hotel – construction commences January 2018 and ends in 2020; see [provide website link]  Transpacific Cable – construction (first phase) begins and ends in 3rd quarter of 2016, with subsequent phases scheduled for 2020 and 2025  Plan Hermosa – Update of City of Hermosa Beach General Plan (in progress); see [provide website link] Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0102 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 SOUTHERN CALIFORNIA EDISON RELIABILITY UPDATE FROM REPRESENTATIVES CONSTANCE TURNER AND PAUL HENNESSY Attachments: 1.2015 SCE Reliability Report - Hermosa Beach Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Course Name 1 SOUTHERN CALIFORNIA EDISON Circuit Reliability Review City of Hermosa Beach January 2015 Course Name 2 SOUTHERN CALIFORNIA EDISON Reliability Metrics Momentary Outages: Outages lasting 5 minutes or less •MAIFI: –The number of times the average customer is interrupted by Momentary outages each year. •SAIFI: –The number of times the average customer is interrupted by Sustained outages each year. •SAIDI: –The cumulative amount of time the average customer is interrupted by Sustained outages each year. Sustained Outages: Outages lasting longer than 5 minutes Course Name 3 SOUTHERN CALIFORNIA EDISON Cities in the South Bay District Alondra Park Rolling Hills Estates Del Aire Torrance El Segundo View Park-Windsor Hills Gardena West Athens Hawthorne Westmont Hermosa Beach Inglewood Ladera Heights Lawndale Lennox Lomita Los Angeles Manhattan Beach Palos Verdes Estates Rancho Palos Verdes Redondo Beach Rolling Hills Course Name 4 SOUTHERN CALIFORNIA EDISON Reliability by District –(No Exclusions) **In the columns showing “Rank,” lower numbers indicate poorer performance. Course Name 5 SOUTHERN CALIFORNIA EDISON Overview of Hermosa Beach There are 12 circuits that serve the City of Hermosa Beach Circuit Type Sum of Customers Circuit Type Sum of Customers Circuit Type Sum of Customers Circuit Type Sum of Customers ADDIS(16KV)3,086 0 - 0 - 0 - CAMINO REAL(4KV)766 0 - 0 - 0 - CLEO(4KV)1,056 0 - 0 - 0 - CYLINDER(16KV)1,375 0 - 0 - 0 - EL PASEO(4KV)975 0 - 0 - 0 - HERMOSA(4KV)1,219 0 - 0 - 0 - KING(16KV)3,929 0 - 0 - 0 - MORGAN(4KV)596 0 - 0 - 0 - NO BEACH(4KV)855 0 - 0 - 0 - OZONE(4KV)590 0 - 0 - 0 - PULLMAN(4KV)2,312 0 - 0 - 0 - SO STRAND(4KV)631 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - 0 - Grand Total 17,390 Grand Total 17,390 Course Name 6 SOUTHERN CALIFORNIA EDISON SAIDI (average minutes of sustained interruptions) SAIFI (average frequency of sustained interruptions) MAIFI (average frequency of momentary interruptions) 2011 2012 2014 ** “Exclusions” are days which utilities are allowed to remove from their metrics because the outages on those days were caused by severe acts of nature. 2013 Median (no exclusions) 1st Quartile (no exclusions) 1st Quartile (with exclusions) HERMOSA BEACH SCE SYSTEMWIDE 2013 performance of 88 utilities surveyed by IEEE 46.7 175.4 178.8 42.2 232.4 108.1 102.6 112.2 181 122 85 0.0 50.0 100.0 150.0 200.0 250.0 0.6 0.9 1.3 0.5 1.0 0.9 0.9 1.0 1.21 1.01 0.85 0.0 0.5 1.0 1.5 1.1 1.1 0.5 0.8 1.5 1.4 1.2 1.4 0.0 0.5 1.0 1.5 2.0 Reliability History of Circuits Serving Hermosa Beach (No Exclusions) Course Name 7 SOUTHERN CALIFORNIA EDISON SAIDI = the cumulative amount of time the average customer is interrupted by “sustained” outages each year. Equipment Failure e.g., in-service failure of transformer, switch, or conductors Vegetation/Animal e.g., tree branch, rodent, or bird causing a short circuit between conductors Other e.g., patrolled but no cause found Operations e.g., urgent maintenance w/o 3-day notice 3rd Party e.g., balloon, car hit pole, dig-in 3rd Party, 0.0% Equipment Failure, 3.0% Operation, 4.4% Other, 26.2% Vegetation/Animal, 0.0% Weather/Fire/Earthquake, 66.4% Contributions to SAIDI by Outage Cause 3rd Party Equipment Failure Operation Other Vegetation/Animal Weather/Fire/Earthquake Causes of Repair Outages in Hermosa Beach Circuits 2014 Course Name 8 SOUTHERN CALIFORNIA EDISON SAIFI = the number of times the average customer is interrupted by “sustained” outages each year. Equipment Failure e.g., in-service failure of transformer, switch, or conductors Vegetation/Animal e.g., tree branch, rodent, or bird causing a short circuit between conductors Other e.g., patrolled but no cause found Operations e.g., urgent maintenance w/o 3-day notice 3rd Party e.g., balloon, car hit pole, dig-in 3rd Party, 0.0% Operation, 2.2% Other, 22.3% Weather/Fire/Earthquake, 74.1% Equipment Failure, 1.4%Vegetation/Animal, 0.0% Contributions to SAIFI by Outage Cause 3rd Party Operation Other Weather/Fire/Earthquake Equipment Failure Vegetation/Animal Causes of Repair Outages in Hermosa Beach Circuits 2014 Course Name 9 SOUTHERN CALIFORNIA EDISON Outage Data Analysis Select “Worst” Circuits Identify Improvements for Each Circuit Develop Work Orders Construction Circuit Reliability Management To perform circuit rehabilitation in 2015, the process started in 2012 2012: Review circuit outage records for 2009 –2011. Note: The significant volatility in circuit performance requires evaluation of performance over a long period of time to ensure the targeting of “actual” versus “apparent” problem circuits. 2012: Identify candidate “worst” circuits based on outage statistics. Refine list of circuits based on field personnel input, e.g., engineering, operations, public affairs. 2013: For each targeted circuit, identify improvements and/or replacements which would cost-effectively improve future reliability based on past outage causes and locations, equipment age, and circuit design. Work may include equipment replacement, installation of isolation devices, and provisions for providing alternate sources of power 2014: Survey the job sites, develop the construction Work Orders, obtain easements, & identify needed permits. 2015: Project construction. Rehabilitating circuits is a systematic and objective process. Features de picted herein are planning level a ccu racy, a nd in te nded for in formational purposes on ly.Dista nces a nd loca tion s ma y be distorte d at this sca le . Always con sult with the p rop er leg al do cume ntsor ag encies reg ard in g such fea tu re s. Real Pro pertie s DepartmentThomas B ros. Map s is a registered tra demark of Ra nd McNa lly & Compa ny.Reprodu ced with p ermission granted by Ra nd McNa lly & Compa ny. © Rand McNally & Comp any.All righ ts rese rved.This la yer rep resents on e of the live web se rvices from th e Microsoft Virtual Earth o nlin e ma ppingsystem. Use of this layer in ArcGIS prod ucts and a pplications requ ires licensing from ESRI.The laye r won't draw if you do n't have the a ppropria te licen se.For more info rma tion ab out using Virtual Earth in ArcGIS, plea se se e: http://reso urces.esri.com/arcgiso nlin ese rvices/virtua le arth Se e Microsoft Live Se arch Maps(http://maps.live.co m) fo r more in formation abo ut the Virtual Earth system, terms of u se, and a co mp le te list o f data sup plie rs. Notification #: 203059468 Date: 12/3/2014 File Name: Hermosa_Beach_2015_AC_v1 Path: P:\PROJECTS\Special_Projects\City_County_Reliability_Outreach\Capital Improvement Plan_Greg Ferree\City\Hermosa Beach\2015\Hermosa_Beach_2015_AC_v1.mxd2015Capital Improvement PlanAll Circuits I 0 790 1,580395 Feet Hermosa Beach City of Hermosa Beach All Hermosa Beach Circuits: ADDIS CAMINO REAL CLEO CYLINDER EL PASEO HERMOSA KING LARSON MORGAN NO BEACH OZONE PULLMAN SO STRAND Features depicted herein are planning level accuracy, and intended for informational purposes only.Distances and locations may be distorted at this scale. Always consult with the proper legal documentsor agencies regarding such features. Real Properties DepartmentThomas Bros. Maps is a registered trademark of Rand McNally & Company.Reproduced with permission granted by Rand McNally & Company. © Rand McNally & Company.All rights reserved.This layer represents one of the live web services from the Microsoft Virtual Earth online mappingsystem. Use of this layer in ArcGIS products and applications requires licensing from ESRI.The layer won't draw if you don't have the appropriate license.For more information about using Virtual Earth in ArcGIS, please see: http://resources.esri.com/arcgisonlineservices/virtualearth See Microsoft Live Search Maps(http://maps.live.com) for more information about the Virtual Earth system, terms of use, and a complete list of data suppliers. Notification #: 203059468 Date: 1/14/2015 File Name: Hermosa_Beach_2015_CIP_v1 Path: P:\PROJECTS\Special_Projects\City_County_Reliability_Outreach\Capital Improvement Plan_Greg Ferree\City\Hermosa Beach\2015\Hermosa_Beach_2015_CIP_v1.mxd2015 Capital Improvement Plan 0 780 1,560390 Feet City of Hermosa Beach UG Structure Replacements: D Q2-2015 Wood Pole Replacements: !A 9 Poles Hermosa Beach I Pacific Ocean Course Name SOUTHERN CALIFORNIA EDISON Updated through Year-End 2014 Back-up Slides Reliability Histories of Circuits Serving Hermosa Beach Course Name SOUTHERN CALIFORNIA EDISON Notes: No outages are excluded from the metrics. Outage Causes: Other: e.g., patrolled but no cause could be found Operations: e.g., urgent maintenance w/o 3-day notice to customers 3rd Party: e.g., balloons, car hit pole, dig-in Vegetation/Animal: e.g., tree branch, rodent, or bird causing short circuit across conductors SAIDI (minutes) = the cumulative amount of time the average customer is interrupted by “sustained” (longer than 5 minutes) outages. SAIFI (interruptions) = the number of times the average customer is interrupted by “sustained” outages. MAIFI (interruptions) = the number of times the average customer is interrupted by “momentary " (lasting 5 minutes or less) outages . Average Reliability of 12 Circuits Serving Hermosa Beach SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI HERMOSA BEACH 46.7 0.6 1.1 175.4 0.9 1.1 178.8 1.3 0.5 2.1 0.0 0.3 0.5 0.0 0.0 31.0 0.4 0.4 8.6 0.1 0.1 42.2 0.5 0.8 3rd Party 13%13%19%11%18%41%7%21%34%0%0%56%0%0%0%0%0%0%0%0%45%0%0%27% Equipment Failure 28%12%0%77%45%42%46%40%26%0%0%0%100%100%0%1%0%0%4%3%0%3%1%0% Operation 20%15%5%1%9%0%13%7%1%0%0%21%0%0%0%1%0%0%19%10%0%4%2%8% Other 25%13%3%0%0%3%1%0%16%100%100%23%0%0%0%12%15%32%62%51%55%26%22%33% Vegetation/Animal 10%47%7%0%0%0%33%31%15%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Weather/Fire/Earthquake 4%0%66%12%28%14%0%0%9%0%0%0%0%0%0%86%85%68%15%36%0%66%74%33% SCE Systemwide 232.4 1.0 1.5 108.1 0.9 1.4 102.6 0.9 1.2 21.4 0.2 0.3 26.4 0.2 0.4 29.5 0.2 0.3 35.0 0.3 0.4 112.2 1.0 1.4 4th Qtr 2014 20142011201220131st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 Course Name SOUTHERN CALIFORNIA EDISON Reliability Histories for Individual Circuits Serving Hermosa Beach SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI ADDIS(16KV) - Customers: 3,086 11.6 0.0 0.0 0.7 0.0 1.0 258.5 1.2 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.8 0.0 0.0 0.0 0.0 0.0 0.8 0.0 0.0 Weather/Fire/Earthquake 82%55%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%0%0%0%0%100%100%0% Vegetation/Animal 0%0%0%0%0%0%67%82%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%3%2%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%83%82%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 18%45%0%17%18%0%29%16%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% CAMINO REAL(4KV) - Customers: 766 0.0 0.0 0.0 0.0 0.0 0.0 164.9 1.5 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 0%0%0%0%0%0%100%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% CLEO(4KV) - Customers: 1,056 36.7 0.1 0.0 186.6 0.4 2.3 3.3 0.0 0.0 0.0 0.0 1.0 0.0 0.0 0.0 3.0 0.0 3.0 0.0 0.0 0.0 3.0 0.0 4.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%100%0%0%0%100%100%75% Operation 8%12%86%0%0%0%0%0%0%0%0%100%0%0%0%0%0%0%0%0%0%0%0%25% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 73%48%14%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%93%97%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 19%40%0%7%3%0%100%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% CYLINDER(16KV) - Customers: 1,375 42.7 0.1 0.0 47.6 1.1 0.0 2.8 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 30.9 1.0 1.0 3.0 0.0 0.0 33.8 1.0 1.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%100%0%0%0%91%99%100% Operation 17%18%0%29%96%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 83%82%0%0%0%0%0%0%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 0%0%0%71%4%0%100%100%0%0%0%0%0%0%0%0%0%0%100%100%0%9%1%0% 4th Qtr 2014 20142011201220131st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 Course Name SOUTHERN CALIFORNIA EDISON Reliability Histories for Individual Circuits Serving Hermosa Beach SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI EL PASEO(4KV) - Customers: 975 32.9 0.1 0.0 0.0 0.0 0.0 95.7 1.1 0.9 0.0 0.0 0.0 7.8 0.0 0.0 66.2 1.0 1.0 0.0 0.0 1.0 74.2 1.0 2.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%100%0%0%0%90%98%50% 3rd Party 0%0%0%0%0%0%60%90%0%0%0%0%0%0%0%0%0%0%0%0%100%0%0%50% Equipment Failure 100%100%0%0%0%0%40%10%100%0%0%0%100%100%0%0%0%0%0%0%0%10%2%0% HERMOSA(4KV) - Customers: 1,219 111.3 1.0 1.9 5.4 0.0 1.0 22.1 0.1 0.9 0.0 0.0 2.8 1.5 0.0 0.0 0.0 0.0 1.0 0.4 0.0 0.0 1.9 0.0 3.8 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 93%94%0%0%0%0%0%0%0%0%0%35%0%0%0%0%0%100%0%0%0%0%0%52% 3rd Party 0%0%100%0%0%0%100%100%100%0%0%65%0%0%0%0%0%0%0%0%0%0%0%48% Equipment Failure 7%6%0%100%100%100%0%0%0%0%0%0%100%100%0%0%0%0%100%100%0%100%100%0% KING(16KV) - Customers: 3,929 17.2 0.6 3.2 604.1 3.1 2.0 350.9 3.9 0.4 0.0 0.0 0.0 0.0 0.0 0.0 108.7 1.0 0.0 0.0 0.0 0.0 108.8 1.0 0.0 Weather/Fire/Earthquake 0%0%90%13%31%0%0%0%0%0%0%0%0%0%0%99%100%0%0%0%0%99%100%0% Operation 0%0%0%0%1%0%29%11%4%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 99%100%10%0%0%0%34%26%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%6%20%16%10%26%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 1%0%0%81%49%84%27%36%96%0%0%0%0%0%0%1%0%0%0%0%0%1%0%0% MORGAN(4KV) - Customers: 596 21.5 0.1 0.0 4.4 0.0 1.0 16.5 0.0 1.0 60.4 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 37.9 1.0 2.0 98.4 1.1 3.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%0%39%96%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%100%100%0%0%0%0%0%0%0%0%0%100%61%4%67% 3rd Party 0%0%0%0%0%100%0%0%100%0%0%100%0%0%0%0%0%0%0%0%0%0%0%33% Equipment Failure 100%100%0%100%100%0%100%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 4th Qtr 2014 20142011201220131st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 Course Name SOUTHERN CALIFORNIA EDISON Reliability Histories for Individual Circuits Serving Hermosa Beach SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI SAIDI SAIFI MAIFI NO BEACH(4KV) - Customers: 855 323.0 3.9 1.1 492.9 2.4 3.1 557.2 1.2 1.0 0.0 0.0 0.0 0.0 0.0 0.0 1.1 0.0 0.0 108.6 1.0 0.0 113.7 1.0 0.0 Weather/Fire/Earthquake 0%0%0%14%44%100%0%0%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 55%45%100%0%0%0%1%4%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 2%27%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%0%99%99%0% 3rd Party 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 42%28%0%86%56%0%99%96%0%0%0%0%0%0%0%100%100%0%0%0%0%1%1%0% OZONE(4KV) - Customers: 590 10.0 1.1 2.1 3.8 0.0 1.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Weather/Fire/Earthquake 0%0%50%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Vegetation/Animal 74%99%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%50%0%0%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 26%1%0%100%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% PULLMAN(4KV) - Customers: 2,312 2.5 0.0 0.6 0.0 0.0 0.0 75.9 0.5 1.1 0.0 0.0 0.0 0.0 0.0 0.0 0.5 0.0 0.0 8.2 0.0 0.0 8.7 0.0 0.0 Weather/Fire/Earthquake 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 100%100%0%0%0%0%1%2%0%0%0%0%0%0%0%100%100%0%93%63%0%93%66%0% Vegetation/Animal 0%0%0%0%0%0%1%3%50%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 0%0%100%0%0%0%0%0%50%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 0%0%0%0%0%0%98%95%0%0%0%0%0%0%0%0%0%0%7%37%0%7%34%0% SO STRAND(4KV) - Customers: 631 258.5 3.2 1.0 46.5 0.1 0.0 33.4 0.1 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 17.5 0.2 0.0 17.7 0.2 0.0 Weather/Fire/Earthquake 0%0%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Operation 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%100%100%0%100%100%0% Vegetation/Animal 3%33%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Other 0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 3rd Party 68%66%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% Equipment Failure 29%1%0%100%100%0%100%100%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0%0% 4th Qtr 2014 20142011201220131st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 From: Ashley's Deli <ashleysdeli@aol.com> Date: Mon, Jan 25, 2016 at 6:08 PM Subject: Re: SCE at our upcoming council meeting To: Mayor Carolyn Petty <cpetty@hermosabch.org> Cc: Kim MacMullan <kmac@hbchamber.net>, Ron Newman <ron@sharkeez.net>, "gregn@sharkeez.net" <gregn@sharkeez.net>, "Allen Sanford (allen@livelist.com)" <allen@livelist.com>, Doug Howarth <doug@silviosbbq.com>, "sethweisss@gmail.com" <sethweisss@gmail.com>, "phennessey@HennesseysTavern.com" <phennessey@hennesseystavern.com>, "tsgfred@aol.com" <tsgfred@aol.com> Hello Everyone, Unfortunately I will not be able to attend the meeting. I have spread the word to all the local merchants around me. My business suffered tremendously from the recent outages. We lost product, customers, sales, wages and much more. It's tough enough to have a small business in Hermosa. We need to be able to rely on the consistency of our city's infrastructure. Thank you, Kristine Ashley Ashley's Deli Sent from my iPhone Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0091 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 WINNER OF THE 6TH ANNUAL HERMOSA BEACH PARKING PERMIT ART CONTEST Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0089 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 LETTERS FROM GEOFF HIRSCH DATED JANUARY 7, 2016 REGARDING DIAL-A-RIDE SERVICE Recommended Action: To receive and file the written communication from Geoff Hirsch. Attachments: 1.Letter from Geoff Hirsch regarding Taxi Issues 2.Letter from Geoff Hirsch regarding Dial-A-Ride Service 3.Letter from Geoff Hirsch regarding Taxicab Franchise Agreement 4.June 2015 Taxicab Franchise Agreement - All Yellow Taxi 5.June 2015 Taxicab Franchise Agreement - South Bay Yellow Cab 6.Letter from Geoff Hirsch regarding First Amendment to Dial-A-Ride 7.October 2015 First Amendment to Dial-A-Ride - All Yellow Taxi 8.October 2015 First Amendment to Dial-A-Ride - South Bay Yellow Cab Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ From:Geoff [mailto:grhirsch@verizon.net] Sent:Thursday, January 07, 2016 1:01 AM To:Elaine Doerfling Subject:Fwd: Taxi Dear Elaine, Please forward the email below to all councilmembers and include that as part of their written communications for the 1/12/16 meeting. Thank you. Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone: 310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) Begin forwarded message: From:Geoff <grhirsch@verizon.net> Date:January 6, 2016 at 4:56:43 PM PST To:Georgia Lonnquist <glonnquist@hermosapolice.org>, Ennis Jackson <ejackson@hermosapolice.org>, Tom Bakaly <tbakaly@hermosabch.org>, HBPD <mmckinnon@hermosapolice.org>, Hany Fangary <Hany@velascolawgroup.com> Subject: Re: Taxi Thank you for this, but you got a few of the facts wrong. -The pick up time, requested 24 hours in advance, was for 1:30 PM. The driver actually arrived at 3:15 PM. This is not 45 minutes late as you claim, it is actually a one hour and 45 minutes delay. The $25 fee is assessed the weekly, not monthly. This translates into eight $1300 annual assessment, not $300 as you calculated. Enjoy your time off. I would hope that you not only respond to this complaint within a week, but finally do something to alleviate all these problems. Having a van will the driver is of no use to anyone, and might I suggest that, in the future, the city only negotiate with vendors that have multiple wheelchair vans available? Thank you for your cooperation, enjoy your time off- Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone: 310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) On Jan 6, 2016, at 4:48 PM, Georgia Lonnquist <glonnquist@hermosapolice.org> wrote: Geoff, Thank you for advising us of this issue. I have forwarded your complaint to South Bay Yellow Taxi for them to investigate. Upon receipt of the complaint, the taxi companies, per the Dial-a-Taxi Agreement, have one week to respond and provide their findings. You mentioned in your complaint that the return pick up was more than 2 hours later than your reserved time. Based on the times you provided, the return would have been 45 minutes late, so I just need to confirm with you that the 3:15 actual return pick up is correct. As for the permit charges, the taxi franchise fees are $1,100 per taxi. If any of the taxi companies require a portion of this fee to be paid by the driver, it would be at the taxi company’s discretion and is not mandated by the City. I’m not certain what the $25.00 per month ($300/year) fee is that the driver is telling you about, but that’s between the driver and the taxi company. I will be out of the office for a couple of weeks but will make sure you receive an answer to your complaint as soon as possible. If you have additional taxi issues in my absence, please contact Ennis Jackson at 310-318-0249 or ejackson@hermosapolice.org. Thank you, Georgia From:Geoff [mailto:grhirsch@verizon.net] Sent:Wednesday, January 06, 2016 2:20 PM To:Georgia Lonnquist; Captain Milton McKinnon; Tom Bakaly Subject:Taxi Texi problems 1/3/16-called in a reservation on 1/2. 1 o'clock pick up 230 return for 1/3. First, send a regular cab, not wheelchair van at 1 o'clock. Number was 337. Then, wheelchair van arrived, told me he could not pick me up for return until 315. Nearly 2 hours later than reservation was made for. Problem is they booked him for other trips that interfere with my pick up. Also, driver said he is paying $25/month for most of permit. Is this true? That's $1400 a year. Too much $-is this charge from the city or the cab company. No wonder they can't find drivers. Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone: 310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) From:Geoff [mailto:grhirsch@verizon.net] Sent:Thursday, January 07, 2016 1:17 AM To:Elaine Doerfling Subject:Fwd: Hermosa Dial-A-Ride Service Elaine, Please include the letter below as part of the councils 1/12/16 meeting packet to be submitted under "written communications," I would also appreciate it if you would agenda eyes this item Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone: 310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) Begin forwarded message: From:Geoff <grhirsch@verizon.net> Date:December 15, 2015 at 11:00:16 AM PST To:"citycouncil@hermosabch.org" <citycouncil@hermosabch.org> Subject: Hermosa Dial-A-Ride Service Hello, Sorry to bother you all with this, especially during the busy holiday season, but I have a matter of some importance I'd like to address with you. For several months, (6+),I have been using a wheelchair van service through our disl-a-ride program. I am truly blessed to live in a city that shows such concern for its residents. However, this program leaves a lot to be desired. I have been stranded for it 2+ hours waiting for a ride, failed to have been picked up on numerous occasions, and have experienced multiple denials of service due to the fact that one company's wheelchair van is not licensed to operate in Hermossa Beach,despite the fact he has been taking a student to and from Hermosa Valley for several years. Just this morning, I spoke to the customer service manager of one company, who informed me that she was "too busy," to address my concerns. Sadly, this is a typical response. While city staff has been very willing to address this problem, they have achieved zero results. I ask that you folks get involved with this issue and finally resolve these problems.While wheelchair vans under this program have a limited range, they are my primary source of mobility. Please do not let me become a housebound invalid. Many thanks, Sent from my iPhone Geoff Hirsch cell: 310 846-7843 Email: grhirsch@verizon.net (Please excuse any typos, I really do know how to spell.) From:Geoff [mailto:grhirsch@verizon.net] Sent:Thursday, January 07, 2016 12:47 AM To:Elaine Doerfling Subject:Fwd: Agreements Please include the following letter and attachments to the councils packet for 1/12/16. Thank you. Dear council members, In response to numerous service issues and contract violations, the city issued an amendment to our taxi Dial-a-Ride program. Without any notice to the program participants,the city manager allowed these companies to require a 24 hour advance notice for reservations. This imposes an unfair restriction upon those riders requiring a wheelchair van for their transportation needs. Please remedy this error by repealing the 24 hour notice amendment. Thank you. Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone:310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) From:Geoff [mailto:grhirsch@verizon.net] Sent:Thursday, January 07, 2016 12:53 AM To:Elaine Doerfling Subject:Fwd: Amendment to Dial-a-ride Please include the following amendment to the city's Dial-A-Ride contract in the councils 1/12/16 information packet and include same as part of the written communications received for the agenda of that meeting. Thank you. Sent from my iPhone Geoff Hirsch email:grhirsch@verizon.net Phone:310-846-7843 Fax: 310-376-7843 (Please excuse any typos, I really do know how to spell.) Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0093 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 LETTER FROM KENT ALLEN DATED JANUARY 19, 2016 REGARDING HOPE CHAPEL Recommended Action: To receive and file the written communication from Kent Allen. Attachments: Letter and Attachment from Kent Allen Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ From: Kent Allen [mailto:kentjallen@gmail.com] Sent: Tuesday, January 19, 2016 11:42 AM To: Elaine Doerfling Cc: Ken Robertson; Peter Hoffman; Rob Saemann; Mike Flaherty; Hany Fangary; Jeff Duclos; Justin Massey Subject: Fwd: Hope chapel Please add the attached to the public agenda for for both the planning commission meeting and the next Council meeting. From what I understand this project will not only re-open the closed market but will also stretch back to Prospect and remove the Shore wood Real Estate office and the businesses on Prospect. I don't know if this is real or not, but I'm sure the public would like to know. I know I'm very interested in this gateway to our city. Thanks Kent Allen 310-864-9124 Kentjallen@gmail.com rt li:;;l.ii:,::i' [1:-' *r, :ffl 1 $i; :i{i i r':i i .,tt:. l +r.ii eiil :, i::r {1 l: ti i,,l: -.,{Itnzmx()(r-,.ttn*€rl -*$ :x 9lScuTn:r-o_I=5tu+\r- ;: : - - (-u Ol aD .D = 1 = J'' J.:;w:-Tr$ut;i3r.r_S A-o aj X ?;c,r r- f -:-5,=.Cr ill ! ; ,a 0; A )-, 1= C tg .r. E = ;1r;ff a X : = i a\j-)<oJ'5.-;(rJ1 J--:{;n:s 6-:[; 1.8*rI X io {r' =' - J' q + l, = :-: :+;JIYorcruz'rjlj6J*Xi-ailA*"*^orii;9:Lc* de*[ -"::Q6-:36rp+5rr9:.-j=-o=* qR;i :rF?: 3:l:6,I o'5:i6' g3:: =.P;?-=(Ua41 n;uu',=-J^Lv se'; d F $* tf < =: = --'.,_a.r1<.jQHH:i[aE; i;il":";f :r;SFTU Yr:Y =*!-<1_" r- {n tJi t*-$L"b=orT;lY=7-'r=^:-:-:j:-N3a=* i13= rig:raF13 E=+t +1ig:-nOiviv-,v-._:lT 5 i'r ;;5 r - ? F' 1') =t .. X t= a d s ,-.i a 3 J-^=. 1-,iq"*s =X:v aciif\r-a! -U!/0 u D_ 5* : a --.1 4 ri*$rLr - s)rg $trl 15 (: r1;.::11g;;r_'!;;,1 l.::::i,l:t'i:,ci?-3 ,4. 'i_ i:: t,:." .1,, I, i € : .P. g att. ffi .-F .:& ffi.ffi ::;FrertJrr\Edtr.s *j .i: : ::,.:''*1,I. . l.'.ri: ,::,:.1 , ,i.+ ,,rji,ii:iiil .ij;ir,.;,.''l i, .;,rr,,1i,i,r{rlii , i. r:.rir:il.l'i,tiiriti ltii,l' :|)::t.a,i' iL.li ta:" r;::::::':ii i; f'li i9r li i=ii : i*- ii .1il::=-i January 26, 2016 To: Kent Allen City of Hermosa Beach From: Dale Turner Dear Kent: I recently received a copy of a letter from you addressed to Elaine Doerfling regarding some concerns regarding our properties located at the corner of Pacific Coast Highway and Artesia Boulevard. To avoid any more confusion, let me set the record straight: First, Hope Chapel recently signed a multi-year lease with Lazy Acres (a subsidiary of Bristol Farms) to occupy the former Albertsons building. As I understand it, they are in the process of submitting all of the necessary plans for renovations and occupancy. Second, with the income primarily derived from this lease, we now have an opportunity to renovate our old bowling alley building and reconfigure it for a more church-friendly use, and one that meets current code requirements. It is also our intention to put a “new face” on the outside of our tired and dated structure in efforts of making the entrance to our City more beautiful to those accessing our City from the north. Third, we do not have, nor ever have had, the intention of demolishing the Shorewood building. In fact, we actually plan on retaining it as a commercial building and upgrading its look as well. However, as you may appreciate, we do plan to vacate our existing tenancy sometime in the near future in order to accommodate our ministry offices in preparation of our renovation. Finally, we’ve always hoped that the City would play a pivotal role in helping us make this corner a true “gateway” to our community. As one who has continually watched the development enhancements in Manhattan Beach and El Segundo, I believe we now have an opportunity to do the same. I hope this puts to rest any speculation and/or confusion regarding our property. Please feel free to contact me personally and at any time should you or any of your colleagues have questions or need additional information. God bless, Dale Turner Executive Pastor/Church Administrator Cc: Ken Robertson/City of HB Carolyn Petty/City of HB Tom Bakaly/City of HB Larry Robinson/Hope Chapel 2306 Pacific Coast Highway, Hermosa Beach, CA 90254 I 310-374-4673 I Fax 310-374-8223 I hopechapel.org Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0094 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 LETTER FROM FRED HUEBSCHER DATED JANUARY 19, 2016 REGARDING HERMOSA BEACH MUNICIPAL CODE SECTION 8.24.050 (PERMISSIBLE HOURS OF CONSTRUCTION) Recommended Action: To receive and file the written communication from Fred Huebscher. Attachments: 1.Letter from Fred Huebscher 2.Municipal Code Section 8.24.050 Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ From:Fred Huebscher [mailto:drslate@verizon.net] Sent:Tuesday, January 19, 2016 12:32 PM To:Ann Yang Subject:Written Communication for January 26, 2016 Council Meeting Dear Councilmembers, I am writing to you about Hermosa Beach Municipal Code Section 8.24. 050 which regulates construction in our city. In subsection A, the Code prohibits construction on Sundays and “national holidays.” And in subsection E, property owners engaged “in construction activity on his or her own property” are allowed to do so on Sundays and “national holidays” from 10 AM-2 PM. However, in Section 8.24. 020, there is no definition of “national holiday.” Does national holiday mean for example, Good Friday, a day when the New York Stock Exchange is closed, or Yom Kippur, a day when many public schools are closed? National holidays have different meanings to different people. For example, our trash hauler, Athens Waste, does not believe that Martin Luther King Day, Presidents Day, Columbus Day and Veterans Day are national holidays since they pick up trash from homes and businesses in our city on those days. Local public schools and universities and most all businesses do not believe that Columbus Day is a national holiday since they are all open for business on that day. If the intent of the city is to prevent noise from construction on Sundays and national holidays then the city should ban all construction on those days and not exempt owner construction. Moreover, many would argue that noise generated from trash collection disturbs their holiday so why doesn’t the city ban trash collection on all “national holidays?” Our city prides itself in being “business friendly” but your ordinance is very costly to the construction business (e.g. contractors, plumbers, electricians) because they don’t have a clue what is a “national holiday” since the city doesn’t define what a national holiday is. Moreover, the city doesn’t define what “construction activity on his or her own property” means. Does it mean that the owner has to be present? Does it mean that a person can do construction at his shopping center if he personally owns the shopping center? Does it mean I can operate a bulldozer on my own property on those holidays? The Council ought to revise this ordinance pronto so that it’s crystal clear what one can and cannot do vis-à-vis construction on Sundays and “national holidays.” Moreover, do we really need to regulate construction on holidays (e.g. Martin Luther King Day, Presidents Day, Columbus Day, and Veterans Day) which are mainly observed by government and other publicly operated entities? And if the Council truly believes that we ought to prohibit construction on Sundays and all national holidays then you ought to be consistent and prohibit all construction, trash collection and other noisy activities on these days since the only explanation for prohibiting construction on these days is to maintain peace and quiet in our neighborhoods. Sincerely, Fred Huebscher Hermosa Beach, CA 8.24.050 Construction. A. Permissible hours of construction. All construction shall be conducted between the hours of 8:00 a.m. and 6:00 p.m., Monday through Friday (except national holidays), and 9:00 a.m. and 5:00 p.m. Saturdays. Construction activity is prohibited at all other hours and on Sundays and national holidays. For purposes of this section, "construction" or "construction activity" shall include site preparation, demolition, grading, excavation, and the erection, improvement, remodeling or repair of structures, including operation of equipment or machinery and the delivery of materials associated with those activities. B. Special circumstances. The building official may grant an exception to the provisions of this section in accordance with the procedures set forth below. Upon receipt of an application in writing therefore stating the reasons for the request and the facts upon which such reasons are based, the building official may grant such permission if he or she finds that: 1. The work proposed to be done is in the public interest; or 2. Unusual hardship, injustice or unreasonable delay would result from adherence to the hours and days specified above. Any person dissatisfied with the decision of the building official may forthwith appeal to the city council. Construction, repair or excavation which qualifies as emergency work and which must be accomplished during prohibited hours during such hours as the offices of the city are closed or where such necessity requires immediate action prior to the time at which it would be possible to obtain the building official approval, may be performed provided that the persons doing such construction, repair or excavation obtain a permit therefor within one day after the office of the building official is first opened subsequent to the making of such construction, repair or excavation. C. Utilities exemption. The provisions of this section do not apply to construction, repair or excavation by a public utility which is subject to the jurisdiction of the Public Utilities Commission and where such work is necessary for the immediate preservation of the public health, safety, or welfare and where such necessity makes it necessary to construct, repair or excavate during the prohibited hours. D. City exemption. The provisions of this section do not apply to public works which are authorized by the City. E. Owner exemption. Notwithstanding the provisions of Subsection A of this section, a property owner may engage in construction activity on his or her own property on Sundays and national holidays between the hours of 10:00 a.m. and 2:00 p.m. (Ord. 02-1223 §2, Oct. 2002) Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0101 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 MEMORANDUM REGARDING CITY COUNCIL MINUTES (City Clerk Elaine Doerfling) Recommended Action: It is recommended that the City Council receive and file the City Clerk’s memorandum. Summary: There are no minutes available for approval this evening due to the following reasons: (1) the City Clerk was out sick most of last week; (2) the Deputy has been on vacation all of this week; and (3) the necessary priority of fulfilling all deadlines for the March 1 election (including military/overseas ballots this week). As to the status of our minutes backlog, we have made significant progress. Early last month (for the auditor’s review) we completed the preparation of draft action minutes for all 2015 meetings and are now in the process of finalizing those minutes for Council approval. If not for being short-staffed the past two weeks (and the ongoing election duties) minutes would have been available for this meeting. There will be minutes on the next agenda for Council approval. Submitted by: Elaine Doerfling, City Clerk Noted: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0080 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 CHECK REGISTERS (Finance Director Viki Copeland) Recommended Action: To ratify the following check registers. Attachments: 1.Check Register 1-7-16 2.Check Register 1-14-16 Approved: Viki Copeland, Finance Director Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ 01/07/2016 Check Register CITY OF HERMOSA BEACH 1 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80252 1/7/2016 AAKER, MIKE 1000523.001 GYM DAMAGE DEPOSIT REFUND11955 001-2111 100.00 Total : 100.0011955 80253 1/7/2016 ABATIX CORP 7317160 VACUUM FOR RANGE CLEANING19664 001-8614-4201 1,321.68 Total : 1,321.6819664 80254 1/7/2016 ALL CITY MANAGEMENT 41751 CROSSING GUARD SERVICE 12/6/15-12/19/1506827 001-2102-4201 5,499.00 Total : 5,499.0006827 80255 1/7/2016 ALMANZA, EDWARD P Invoice 1 SCHOOLS TRAFFIC STUDY/YARD17442 001-1201-4201 2,870.00 Total : 2,870.0017442 80256 1/7/2016 AQUA FLO 850820 IRRIGATION SUPPLIES/NOV1509366 001-6101-4309 356.43 Total : 356.4309366 80257 1/7/2016 ARROYO, ERIC 777 BACKGROUND INVESTIGATIONS/DEC1513609 001-2101-4201 315.00 Total : 315.0013609 80258 1/7/2016 AT AND T 7430751 LONG DIST CHARGES 11/13/15-12/12/1516510 001-1121-4304 0.22 001-1132-4304 0.02 001-1141-4304 0.09 001-1201-4304 0.94 001-1202-4304 0.25 001-1203-4304 0.15 001-1208-4304 0.01 001-2101-4304 3.90 001-2201-4304 0.98 001-4101-4304 0.32 001-4202-4304 1.14 001-4204-4321 0.09 001-4601-4304 0.50 01/07/2016 Check Register CITY OF HERMOSA BEACH 2 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80258 1/7/2016 (Continued)AT AND T16510 001-1204-4304 1.24 001-3302-4304 0.20 715-1206-4304 0.11 001-4201-4304 1.34 Total : 11.5016510 80259 1/7/2016 BAKALY, TOM TR 485 PER DIEM/NEW MAYORS MEMBERS ACADEMY17599 001-1201-4317 75.00 Total : 75.0017599 80260 1/7/2016 BELASCO THEATRE COMPANY 2000484.003 THEATRE DAMAGE DEPOSIT REFUND18444 001-2111 500.00 Total : 500.0018444 80261 1/7/2016 BOUNDTREE MEDICAL LLC 81992941 MEDICAL SUPPLIES - DEC1508482 001-2201-4309 924.94 Total : 924.9408482 80262 1/7/2016 BRANDMAN UNIVERSITY PO 8255 TUITION/DELOSSANTOS/SPRING 15/1616992 001-2201-4317 1,890.00 Total : 1,890.0016992 80263 1/7/2016 BRAUN LINEN SERVICE 1292522 PRISONER LAUNDRY//DEC1500163 001-2101-4306 53.98 Total : 53.9800163 80264 1/7/2016 BREEN, GREG 2000474.003 DAMAGE DEPOSIT REFUND19660 001-2111 50.00 Total : 50.0019660 80265 1/7/2016 CALIFORNIA MARKING DEVICE 4966 EPAC SIGNS AND HOLDER00262 001-2201-4305 53.41 PW NAME/TITLE PLAQUES4988 001-4202-4305 81.75 Total : 135.1600262 80266 1/7/2016 CDWG BMB2131 APPLE MACBOOK PRO09632 715-1206-5402 2,287.55 MACBOOK PRO PROTECTION PLANBMQ0290 01/07/2016 Check Register CITY OF HERMOSA BEACH 3 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80266 1/7/2016 (Continued)CDWG09632 715-1206-5402 343.35 MACBOOK PRO CARRYING CASEBMV1942 715-1206-5402 38.15 Total : 2,669.0509632 80267 1/7/2016 CHAFIN, KIM PO 8175 REIMB/COASTAL ZONE MGMT TRAINING19484 001-4101-4317 295.00 Total : 295.0019484 80268 1/7/2016 CHARGEPOINT INC 27430 ELECTRIC CAR CHARGE NETWORK SRVCS18400 715-4204-4201 1,500.00 Total : 1,500.0018400 80269 1/7/2016 COASTWALK, INC 253 AGENCY MEMBERSHIP DUES18253 001-4101-4315 500.00 Total : 500.0018253 80270 1/7/2016 COLLINS, CLAY 9912 WINDOW TINTING18178 715-2101-4311 220.00 Total : 220.0018178 80271 1/7/2016 COTTLE, MIKE 100835.003 GYM DAMAGE DEPOSIT REFUND16628 001-2111 100.00 Total : 100.0016628 80272 1/7/2016 COUNTY OF LOS ANGELES RE-PW-15121707258 ARTESIA BLVD MEDIAN MAINT/NOV1500879 001-3104-4251 311.19 Total : 311.1900879 80273 1/7/2016 CROSBY, SHARON PO 8224 DISMISSED CITATION19657 001-3302 53.00 Total : 53.0019657 80274 1/7/2016 CSULB FOUNDATION PO 8127 SELLAN/INTERNAL AFFAIRS INVESTIGATION00349 001-2101-4312 341.00 Total : 341.0000349 80275 1/7/2016 CSULB FOUNDATION PO 8129 CARTER/PLATA/TITLE 15 SUPERVISORS00349 001-2101-4317 190.00 01/07/2016 Check Register CITY OF HERMOSA BEACH 4 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 190.00 80275 1/7/2016 CSULB FOUNDATION00349 80276 1/7/2016 DAVIDSON, JERRY 2000475.003 DAMAGE DEPOSIT REFUND19659 001-2111 50.00 Total : 50.0019659 80277 1/7/2016 DFM ASSOCIATES PO 8240 2016 CA ELECTIONS CODE00726 001-1121-4251 53.75 Total : 53.7500726 80278 1/7/2016 DUNCAN PARKING TECHNOLOGIES DPT024382 AUTOTRAX/DEC1500122 001-3302-4201 51.70 001-3305-4201 206.80 001-3304-4201 465.30 WIRELESS FEES/HANDHELDS/DEC15DPT024433 001-3302-4201 748.00 Total : 1,471.8000122 80279 1/7/2016 EASY READER Statement #3287 LEGAL ADS/DEC1500181 001-1121-4323 432.00 Total : 432.0000181 80280 1/7/2016 ECMS INC INV5775 TURNOUT CLEANING16332 001-2201-4350 373.33 GREBBIAN/TURNOUT MODIFICATIONINV5777 001-2201-4350 274.68 Total : 648.0116332 80281 1/7/2016 EFFRAM'S MOBIL SERVICE 11/10/15 FUEL PURCHASES/NOV & DEC1519668 715-2101-4310 155.12 Total : 155.1219668 80282 1/7/2016 ESPY, ROB 1002762.003 GYM DAMAGE DEPOSIT REFUND19658 001-2111 103.00 Total : 103.0019658 80283 1/7/2016 EXXON MOBIL FLEET GECC 43368660 GAS CARD PURCHASES 11/11/15-12/10/1510668 715-2101-4310 4,341.80 715-2201-4310 215.24 715-4202-4310 175.16 01/07/2016 Check Register CITY OF HERMOSA BEACH 5 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80283 1/7/2016 (Continued)EXXON MOBIL FLEET GECC10668 715-3302-4310 1,230.68 715-3104-4310 269.24 715-4601-4310 162.89 715-2601-4310 174.08 715-3102-4310 133.41 001-1250 108.64 715-6101-4310 202.09 Total : 7,013.2310668 80284 1/7/2016 FEDERAL EXPRESS CORP 5-268-89703 SHIPMENT TO DONNOE & ASSOCIATES01962 001-1203-4305 28.62 Total : 28.6201962 80285 1/7/2016 FIRST CALL STAFFING SERVICES 00709-151592 TEMP SERVICES W/E 12/20/1506344 001-4201-4112 465.00 Total : 465.0006344 80286 1/7/2016 GALLS LLC BC0222230 HONOR GUARD UNIFORM, COLLAR PINS,01320 001-2101-4314 291.44 Total : 291.4401320 80287 1/7/2016 GC DEL MAR OPERATOR LLC TR 496 MCKINNON/COMMAND COLLEGE19661 001-2101-4317 704.31 Total : 704.3119661 80288 1/7/2016 GOLD COAST TOURS 327536 MAGIC CASTLE EXCURSION TRANSPORTATION16934 145-3409-4201 861.10 GETTY CENTER EXCURSION TRANSPORTATION327537 145-3409-4201 861.10 Total : 1,722.2016934 80289 1/7/2016 GRANT WRITING USA TR 495 KOGER/GRANT WRITING TRAINING19666 001-2101-4317 455.00 Total : 455.0019666 80290 1/7/2016 HAJOCA CORP S146810525.001 35TH ST BARRACADE/DEC1513330 001-3104-4309 235.09 Total : 235.0913330 01/07/2016 Check Register CITY OF HERMOSA BEACH 6 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80291 1/7/2016 HARRIS & ASSOCIATES 30358 CIP 14-173 8TH ST IMPROVEMENTS/NOV1502102 122-8173-4201 9,025.00 Total : 9,025.0002102 80292 1/7/2016 HARTZOG AND CRABILL INC 15-0682 TRAFFIC ENGINEERING SERVICES/NOV1514204 001-3104-4201 5,657.50 Total : 5,657.5014204 80293 1/7/2016 HENGES, PAULA E 56168 EMBROIDERED TACTICAL POLOS11509 001-3302-4201 44.81 Total : 44.8111509 80294 1/7/2016 ID SIGNSYSTEMS, INC.7180 DEPOSIT/LIGHT POSTS19665 001-1201-4201 3,597.60 Total : 3,597.6019665 80295 1/7/2016 INDEPENDENT STATIONERS IN-000579199 OFFICE SUPPLIES/DEC1516742 001-4101-4305 49.68 Total : 49.6816742 80296 1/7/2016 IPS GROUP INC 15076 MONTHLY FEES/SMART METERS/NOV1519314 001-3302-4201 5,452.64 Total : 5,452.6419314 80297 1/7/2016 JULES SELTZER AND ASSOCIATES 223874 PW ADMIN CUBICLE RECONFIGURATION - BAL07518 715-4204-4201 2,032.95 Total : 2,032.9507518 80298 1/7/2016 KALTSAS, DEMETRIOS 100924.003 GYM DAMAGE DEPOSIT REFUND16632 001-2111 100.00 Total : 100.0016632 80299 1/7/2016 KEENAN, KRISTEN 1002784.003 GYM DAMAGE DEPOSIT REFUND18079 001-2111 103.00 Total : 103.0018079 80300 1/7/2016 KOGER, ASHLEY TR 495 PER DIEM/GRANT WRITING TRAINING19371 001-2101-4317 100.00 Total : 100.0019371 01/07/2016 Check Register CITY OF HERMOSA BEACH 7 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80301 1/7/2016 KOSMONT COMPANIES 0003 DOWNTOWN IMPACT/BENEFIT ANALYSIS/NOV1518137 001-1202-4201 2,502.50 Total : 2,502.5018137 80302 1/7/2016 KRESICH, JOHN 100828.003 GYM TIME OVERPAYMENT & DAMAGE DEPOSIT13912 001-2111 200.00 Total : 200.0013912 80303 1/7/2016 L.N. CURTIS & SONS 1331477-00 INCIDENT S 10016 STRIKE TEAM SUPPLIES00850 001-2201-4350 1,525.25 Total : 1,525.2500850 80304 1/7/2016 LA CO SHERIFFS DEPARTMENT 161878SS INMATE MEAL SERVICE/NOV1500151 001-2101-4306 339.65 Total : 339.6500151 80305 1/7/2016 LAIKIN REALTY CORPORATION LSE PO 8227 DISMISSED CITATION19653 001-3302 53.00 Total : 53.0019653 80306 1/7/2016 LAMBRECHT, REBECCA PO 8230 DISMISSED CITATION19650 001-3302 53.00 Total : 53.0019650 80307 1/7/2016 LAW OFFICE OF DONNA R. EVANS 15016.01 INVESTIGATION SERVICES19667 001-1203-4201 25,329.66 Total : 25,329.6619667 80308 1/7/2016 LEWIS, WAYNE PO 8171 PER DIEM/SUPERVISORY COURSE11984 001-2101-4312 150.00 Total : 150.0011984 80309 1/7/2016 LEXISNEXIS RISK DATA MGMT INC 1114400-20151231 INFORMATION SERVICES/DEC1512482 001-2101-4201 50.00 Total : 50.0012482 80310 1/7/2016 LUETJE, TILL PO 8228 DISMISSED CITATION19654 001-3302 48.00 Total : 48.0019654 01/07/2016 Check Register CITY OF HERMOSA BEACH 8 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80311 1/7/2016 MADANI, MIKE 1/1/16 CAR WASHES/SEP15-DEC1518595 715-2101-4311 104.00 Total : 104.0018595 80312 1/7/2016 MAGINE, JULIAN PO 8225 DISMISSED CITATION19651 001-3302 53.00 Total : 53.0019651 80313 1/7/2016 MASSEY, JUSTIN TR 486 PER DIEM/NEW MAYOR MEMBERS ACADEMY19625 001-1101-4317 75.00 Total : 75.0019625 80314 1/7/2016 MCKINNON, MILTON TR 496 PER DIEM/COMMAND COLLEGE19302 001-2101-4317 250.00 Total : 250.0019302 80315 1/7/2016 OFFICE DEPOT 812809000001 OFFICE SUPPLIES/DEC1513114 001-2201-4305 65.11 OFFICE SUPPLIES/DEC15814177778001 001-4601-4305 5.22 OFFICE SUPPLIES/DEC15814177779001 001-4601-4305 41.29 Total : 111.6213114 80316 1/7/2016 ORANGE CO SHERIFFS DEPT PO 8170 LEWIS/SUPERVISORY COURSE TRAINING02954 001-2101-4317 134.00 Total : 134.0002954 80317 1/7/2016 PACIFIC MOBILE STRUCTURES INC 120815-42177 A ADD MOD-WALL19541 001-8632-4201 1,520.00 Total : 1,520.0019541 80318 1/7/2016 PARS PUBLIC AGENCY RETIREMENT, US BANK33163 PARS ARS FEES/SE-ARS07A/OCT1514693 001-1101-4185 5.92 001-1201-4185 3.43 001-1204-4185 0.70 001-2201-4185 87.30 001-3302-4185 6.15 001-4204-4185 35.99 001-4101-4185 24.38 01/07/2016 Check Register CITY OF HERMOSA BEACH 9 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80318 1/7/2016 (Continued)PARS PUBLIC AGENCY RETIREMENT, US BANK14693 001-4201-4185 24.38 001-4601-4185 111.75 Total : 300.0014693 80319 1/7/2016 PAYPAL INC 46766982 CREDIT PROCESSING - PRKG METERS/DEC1516650 001-3302-4201 66.00 001-3305-4201 329.41 001-3304-4201 460.71 001-3302-4201 363.80 Total : 1,219.9216650 80320 1/7/2016 PHONGPRASERT, ANGELA PO 8221 DISMISSED CITATION19656 001-3302 53.00 Total : 53.0019656 80321 1/7/2016 POSTMASTER PO 8231 BULK PERMIT 52/SPRING BROCHURE POSTAGE18447 001-4601-4302 2,100.00 Total : 2,100.0018447 80322 1/7/2016 PRUDENTIAL OVERALL SUPPLY 40990696 MATS & SHOP TOWELS17676 001-2201-4309 27.18 MATS40990697 001-4204-4309 46.28 MATS40990698 001-3302-4309 29.78 MATS40990699 001-4204-4309 33.68 SHOP TOWELS40990700 715-4206-4309 19.68 UNIFORM RENTAL40990701 001-4202-4314 76.94 MATS40990702 001-2101-4309 33.08 MATS & SHOP TOWELS40990703 001-3104-4309 24.18 UNIFORM RENTAL40992763 001-4202-4314 77.97 01/07/2016 Check Register CITY OF HERMOSA BEACH 10 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 368.77 80322 1/7/2016 PRUDENTIAL OVERALL SUPPLY17676 80323 1/7/2016 RAMIREZ, DAISY PO 8229 DISMISSED CITATION19655 001-3302 48.00 Total : 48.0019655 80324 1/7/2016 REDMOND, GEORGE DAVID 36612 THEATRE TECHS/LOCKER KEY COPIES13255 001-4601-4305 43.60 KEY COPIES FOR TOWER DEMO MOVE36696 001-8632-4201 32.70 Total : 76.3013255 80325 1/7/2016 RONAN, DIANA 2000488.003 EXCURSION REGISTRATION REFUND19663 001-2111 45.00 Total : 45.0019663 80326 1/7/2016 ROSEN, CAROL 2000487.003 EXCURSION REGISTRATION REFUND10124 001-2111 34.00 Total : 34.0010124 80327 1/7/2016 SCOTT ROBINSON CHRYSLER 69413 VEHICLE REPAIR PARTS/DEC1518220 715-3302-4311 84.93 Total : 84.9318220 80328 1/7/2016 SELLAN, DONAVAN PO 8128 PER DIEM/INTERNAL AFFAIRS INVESTIGATION12211 001-2101-4312 45.00 Total : 45.0012211 80329 1/7/2016 SHERWIN WILLIAMS 1501-5 PAINTING SUPPLIES/DEC1517903 001-8632-4201 35.22 PAINTING SUPPLIES/DEC151511-4 001-8632-4201 31.95 Total : 67.1717903 80330 1/7/2016 SO CAL PUB LABOR REL COUNCIL PO 8235 GODINEZ/BAGNARA/CONFERENCE REGISTRATION00117 001-1203-4317 160.00 Total : 160.0000117 80331 1/7/2016 SOUTH BAY FORD 478706 AUTO PARTS PURCHASE/DEC1510532 715-2101-4311 296.64 01/07/2016 Check Register CITY OF HERMOSA BEACH 11 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 296.64 80331 1/7/2016 SOUTH BAY FORD10532 80332 1/7/2016 SOUTHERN CALIFORNIA EDISON CO 2-01-414-1071 ELECTRICAL BILLING/DEC1500159 001-4204-4303 2,389.71 ELECTRICAL BILLING/DEC152-01-414-2152 001-6101-4303 1,493.25 ELECTRICAL BILLING/DEC152-01-414-3747 105-2601-4303 54.42 ELECTRICAL BILLING/DEC152-01-414-3994 160-3102-4303 68.36 ELECTRICAL BILLING/DEC152-01-414-4281 105-2601-4303 411.44 ELECTRICAL BILLING/DEC152-01-414-5106 001-3104-4303 557.25 Total : 4,974.4300159 80333 1/7/2016 SPICERS PAPER INC 1278167 COPIER PAPER10232 001-1208-4305 1,345.24 Total : 1,345.2410232 80334 1/7/2016 SYMBOL ARTS, LLC 0248463-IN CHALLENGE COINS16997 001-2101-4201 810.00 Total : 810.0016997 80335 1/7/2016 T MOBILE Acct#946625962 PD/CSOS/CELL PHONES/DEC1519082 001-2101-4201 510.36 001-3302-4304 57.03 001-2101-4304 319.70 Total : 887.0919082 80336 1/7/2016 TIME WARNER CABLE 8448 30 030 0241673 COMM RES/INTERNET/JAN1515277 715-1206-4201 109.99 FD/CABLE/JAN168448 30 030 030764 001-2201-4201 137.87 Total : 247.8615277 80337 1/7/2016 TING, YU YING PO 8211 REIMB/AMAZON/OFFICE SUPPLIES12620 001-4201-4305 172.06 Total : 172.0612620 01/07/2016 Check Register CITY OF HERMOSA BEACH 12 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80338 1/7/2016 TORRANCE WHOLESALE NURSERY 625553 LANDSCAPE MATERIALS/DEC1511102 001-6101-4309 490.50 Total : 490.5011102 80339 1/7/2016 TRIANGLE HARDWARE December 2015 HARDWARE SUPPLIES - DEC1500123 001-2201-4309 272.30 001-3104-4309 581.82 001-4204-4309 424.02 001-6101-4309 949.41 001-8632-4201 609.56 105-2601-4309 933.31 715-4206-4309 219.40 001-2021 116.51 001-2022 -116.51 Total : 3,989.8200123 80340 1/7/2016 UPS 000023R146016 SHIP HANDHELD TICKET WRITER FOR REPAIR14148 001-3302-4305 9.63 Total : 9.6314148 80341 1/7/2016 VERIZON BUSINESS SERVICES 69643045 VOIP SERVICES/COMM RES/NOV1518666 001-4601-4304 122.98 VOIP SERVICES/BARD/NOV1569643670 001-2201-4304 17.95 001-2101-4304 53.86 VOIP SERVICES/BASE 3/NOV1569643842 001-3302-4304 205.19 Total : 399.9818666 80342 1/7/2016 VERIZON CALIFORNIA 310 167-1756 CIRCUIT BILLING 12/16/15-1/15/1600015 001-2101-4304 335.40 TELEPHONE CHARGES/JAN16310 318-6379 001-1121-4304 5.47 001-1132-4304 2.89 001-1141-4304 1.39 001-1201-4304 4.21 001-1202-4304 17.73 001-1203-4304 18.02 001-2101-4304 136.02 01/07/2016 Check Register CITY OF HERMOSA BEACH 13 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80342 1/7/2016 (Continued)VERIZON CALIFORNIA00015 001-2201-4304 80.19 001-4101-4304 12.18 001-4201-4304 20.58 001-4202-4304 63.96 001-4601-4304 31.25 001-1204-4304 19.10 001-3302-4304 1.94 715-1206-4304 6.07 001-1208-4304 0.71 CIRCUIT BILLING 12/19/15-1/18/16310 PL0-0347 001-2101-4304 53.22 CIRCUIT BILLING/JAN16310 UH0-3618 001-2101-4304 430.78 Total : 1,241.1100015 80343 1/7/2016 VERIZON WIRELESS LA 9757327161 IN-FIELD FINGERPRINT DEVICES03209 153-2106-4201 134.80 Total : 134.8003209 80344 1/7/2016 VINCULUMS SERVICES, INC.PO 8207 REFUND/PERMIT FEES/1200 ARTESIA19649 001-3812 2,470.50 001-6809 61.50 Total : 2,532.0019649 80345 1/7/2016 VISION INTERNET PROVIDERS INC 31629 WEB HOSTING/DEC1516294 715-1206-4201 200.00 Total : 200.0016294 80346 1/7/2016 VON RAINER, ALEXANDER PO 8226 DISMISSED CITATION19652 001-3302 53.00 Total : 53.0019652 80347 1/7/2016 ZOLL MEDICAL CORP 2322238 THERMAL PAPER10505 001-2201-4309 42.90 Total : 42.9010505 80348 1/7/2016 ZUMAR INDUSTRIES INC 0162421 STREET SIGN MAINT MATERIAL/DEC1501206 001-8168-4201 831.13 STREET SIGN MAINT MATERIAL/NOV150162422 01/07/2016 Check Register CITY OF HERMOSA BEACH 14 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80348 1/7/2016 (Continued)ZUMAR INDUSTRIES INC01206 001-3104-4309 476.11 STREET SIGN MAINT MATERIAL/DEC150162465 001-3104-4309 716.13 STREET SIGN MAINT MATERIAL/DEC150162466 001-3104-4309 288.85 STREET SIGN MAINT MATERIAL/DEC150162467 001-8168-4201 213.42 Total : 2,525.6401206 1052016 1/5/2016 HERMOSA BEACH PAYROLL ACCOUNT 01052016 PAYROLL 12/16/15 TO 12/31/1500243 145-1103 88.35 001-1103 734,311.26 105-1103 6,509.03 117-1103 2,482.46 152-1103 140.69 160-1103 2,946.83 161-1103 2,642.75 705-1103 4,359.74 715-1103 7,488.83 Total : 760,969.9400243 152637601 12/31/2015 ADMINSURE AS AGENT FOR THE 1/7/16 Check Run WORKER'S COMP CLAIMS REIMB/DEC1514691 705-1217-4324 8,456.63 Total : 8,456.6314691 152906404 12/31/2015 ADMINSURE AS AGENT FOR THE 1/7/16 Check Run WORKER'S COMP CLAIMS REIMB/DEC1514691 705-1217-4324 7,773.99 Total : 7,773.9914691 400148261 1/4/2016 PITNEY BOWES INC ACH Debit POSTAGE METER REFILL/DEC1513838 001-1208-4305 1,000.00 Total : 1,000.0013838 560122551 12/23/2015 SOUTHERN CALIFORNIA GAS CO 011 004 5700 9 GAS BILL/NOV1500170 001-4204-4303 22.66 Total : 22.6600170 560122570 12/23/2015 SOUTHERN CALIFORNIA GAS CO 097 904 5900 3 GAS BILL/NOV1500170 001-4204-4303 93.04 01/07/2016 Check Register CITY OF HERMOSA BEACH 15 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 93.04 560122570 12/23/2015 SOUTHERN CALIFORNIA GAS CO00170 560122571 12/23/2015 SOUTHERN CALIFORNIA GAS CO 102 104 5900 3 GAS BILL/NOV1500170 001-4204-4303 167.05 Total : 167.0500170 560122574 12/23/2015 SOUTHERN CALIFORNIA GAS CO 115 404 6900 1 GAS BILL/NOV1500170 001-4204-4303 56.41 Total : 56.4100170 560122580 12/23/2015 SOUTHERN CALIFORNIA GAS CO 141 204 4600 1 GAS BILL/NOV1500170 001-4204-4303 22.66 Total : 22.6600170 1616314171 1/6/2016 ADMINSURE AS AGENT FOR THE 1/7/16 Check Run LIABILITY CLAIMS REIMB/NOV1514691 705-1209-4324 37,776.73 Total : 37,776.7314691 1617041911 1/7/2016 ADMINSURE AS AGENT FOR THE 1/7/16 Check Run WORKER'S COMP CLAIMS REIMB/DEC1514691 705-1217-4324 43,012.96 Total : 43,012.9614691 Bank total : 977,079.22 108 Vouchers for bank code :boa 977,079.22Total vouchers :Vouchers in this report 108 01/07/2016 Check Register CITY OF HERMOSA BEACH 16 5:04:48PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 16 inclusive, of the check register for 1-7-16 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 1-19-16 01/14/2016 Check Register CITY OF HERMOSA BEACH 1 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80349 1/14/2016 AMORELLI, BEN PO 8250 DISMISSED CITATION19678 001-3302 53.00 Total : 53.0019678 80350 1/14/2016 ASCENT ELEVATOR SERVICES, INC 7197 ELEVATOR MAINT/JAN1618891 001-3304-4201 140.00 001-4204-4201 140.00 Total : 280.0018891 80351 1/14/2016 AT&T MOBILITY 287261798668X0108201 PW/YARD/CELL PHONES/DEC1513361 001-4202-4304 741.83 Total : 741.8313361 80352 1/14/2016 BARROWS, PATRICK PO 8264 INSTRUCT PMT/5946-717271 001-4601-4221 1,102.50 Total : 1,102.5017271 80353 1/14/2016 BEAN, SHIHO PO 8298 2015 ASSESSMENT TAX REBATE17196 105-3105 24.61 Total : 24.6117196 80354 1/14/2016 BRADLEY, DANIELLE PO 8248 DISMISSED CITATION19680 001-3302 48.00 Total : 48.0019680 80355 1/14/2016 BRAUN LINEN SERVICE 1293869 PRISONER LAUNDRY/DEC1500163 001-2101-4306 109.88 PRISONER LAUNDRY/DEC151295200 001-2101-4306 73.50 Total : 183.3800163 80356 1/14/2016 CAL STATE RENT A FENCE INC 59157 CIP 14-632 FD MODULAR FENCING12989 001-8632-4201 445.00 Total : 445.0012989 80357 1/14/2016 CALIFORNIA MARKING DEVICE 5023 SELF-INKING DATE STAMPERS/YEAR UPDATE00262 001-1202-4305 54.50 Total : 54.5000262 01/14/2016 Check Register CITY OF HERMOSA BEACH 2 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80358 1/14/2016 CAPO, KRISTA PO 8267 CASH KEY REFUND19673 001-2117 21.00 001-3851 21.25 Total : 42.2519673 80359 1/14/2016 CASTRO, JESSTENY 02593 Citation Refund/ # 111200333518211 001-3302 83.00 Total : 83.0018211 80360 1/14/2016 CDWG BNZ9723 FIRE CHIEF/IPAD AIR/WARRANTY09632 715-1206-5401 165.20 Total : 165.2009632 80361 1/14/2016 CENTOFANTI, FRANK PO 8243 DISMISSED CITATION19684 001-3302 48.00 Total : 48.0019684 80362 1/14/2016 CITY CLERK'S ASSOCIATION OF CA 1127 MEMBERSHIP/DOERFLING/ABBOTT00356 001-1121-4315 210.00 Total : 210.0000356 80363 1/14/2016 CIVIL SOURCE INC 1017-0498-8 INSPECTION SERVICES/NOV1516167 001-4202-4201 17,640.00 CIP ENGINEER/NOV151017-403-21 001-4202-4201 4,472.25 Total : 22,112.2516167 80364 1/14/2016 COPY SHOP, THE 45987 GENERAL PLAN PUBLIC REVIEW COPIES00022 001-4104-4305 1,520.55 Total : 1,520.5500022 80365 1/14/2016 CRECY, STEVEN PO 8282 REIMB/VETERAN'S MEMORIAL FLAG14752 001-2120 101.47 Total : 101.4714752 80366 1/14/2016 DEWEY PEST CONTROL Acct No. 759408 PEST CONTROL/JAN1611449 001-4204-4201 651.00 Total : 651.0011449 80367 1/14/2016 DUNCAN PARKING TECHNOLOGIES CSBAP000397 AUTOCITE PARKING CITATIONS/OCT1500122 01/14/2016 Check Register CITY OF HERMOSA BEACH 3 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80367 1/14/2016 (Continued)DUNCAN PARKING TECHNOLOGIES00122 001-1204-4201 4,387.43 AUTOCITE PARKING CITATIONS/NOV15CSBAP000417 001-1204-4201 3,749.57 Total : 8,137.0000122 80368 1/14/2016 EMERSON, MATTHEW PO 8147 VOIDED CITATION19675 001-3302 53.00 Total : 53.0019675 80369 1/14/2016 EVANS, MARLIN K.PO 8196 INSTRUCT PMT/5966-68/7415059 001-4601-4221 754.25 Total : 754.2515059 80370 1/14/2016 FAMILY THEATRE INC PO 8155 INSTRUCTOR PYMT/CLASS NO. 593716932 001-4601-4221 1,344.00 Total : 1,344.0016932 80371 1/14/2016 FIRST CALL STAFFING SERVICES 00709-151760 TEMP SERVICES W/E 1/3/1606344 001-4201-4112 465.00 Total : 465.0006344 80372 1/14/2016 GALLS LLC BC0225983 UNIFORM ITEMS01320 001-3302-4314 213.22 Total : 213.2201320 80373 1/14/2016 GARZA, DAVID PO 8194 SIGNED-OFF CITATION19687 001-3302 28.00 Total : 28.0019687 80374 1/14/2016 GRANT, LEE OR DEIRDRE PO 8245 DISMISSED CITATION19682 001-3302 48.00 Total : 48.0019682 80375 1/14/2016 HOME DEPOT CREDIT SERVICES 6021936 HARDWARE SUPPLIES - DEC1503432 001-8632-4201 470.14 HARDWARE SUPPLIES - DEC156021937 001-8632-4201 79.73 DATA LINE ENDS6140263 001-8632-4201 74.47 01/14/2016 Check Register CITY OF HERMOSA BEACH 4 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80375 1/14/2016 (Continued)HOME DEPOT CREDIT SERVICES03432 HARDWARE SUPPLIES - DEC158023557 161-3109-4309 443.71 Total : 1,068.0503432 80376 1/14/2016 INDEPENDENT STATIONERS IN-000578355 OFFICE SUPPLIES/DEC1516742 001-1202-4305 3.37 001-1208-4305 20.17 OFFICE SUPPLIES/DEC15IN-000578551 001-3302-4305 58.27 OFFICE SUPPLIES/DEC15IN-000579695 001-2101-4305 652.80 OFFICE SUPPLIES/DEC15IN-000579924 001-1121-4305 34.10 OFFICE SUPPLIES/DEC15IN-000579940 001-1101-4305 155.65 OFFICE SUPPLIES/DEC15IN-000580042 001-3302-4305 14.00 OFFICE SUPPLIES/DEC15IN-000580099 001-1121-4305 11.13 Total : 949.4916742 80377 1/14/2016 INSKEEP, DAN PO 8252 DISMISSED CITATION19676 001-3302 106.00 Total : 106.0019676 80378 1/14/2016 IRON MOUNTAIN OFF-SITE DATA MCU0880 OFF-SITE STORAGE/JAN1606100 001-1121-4201 159.00 Total : 159.0006100 80379 1/14/2016 ISTWANI, LANA PO 8195 DISMISSED CITATION19686 001-3302 68.00 Total : 68.0019686 80380 1/14/2016 KELLEHER, TIMOTHY PO 8249 DISMISSED CITATION19679 001-3302 38.00 Total : 38.0019679 80381 1/14/2016 KIYOHARA, GLEN PO 8241 DISMISSED CITATION19685 001-3302 53.00 01/14/2016 Check Register CITY OF HERMOSA BEACH 5 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 53.00 80381 1/14/2016 KIYOHARA, GLEN19685 80382 1/14/2016 L.A. COUNTY METROPOLITAN 800062438 TAP BUS SALES/NOV1500843 145-3403-4251 123.00 Total : 123.0000843 80383 1/14/2016 LANDPORT SYSTEMS INC 2016-2812 SERVICE REQUEST SYSTEM SUPPORT/JAN1615574 715-1206-4201 195.00 Total : 195.0015574 80384 1/14/2016 LEARNED LUMBER B483564 HARDWARE & WOOD00167 001-2201-5401 209.79 WOODB483814 001-2201-4309 496.43 WOOD AND TOOLSB485600 001-2201-5401 335.51 HARDWARE SUPPLIESB488234 001-2201-4309 103.40 Total : 1,145.1300167 80385 1/14/2016 LOMITA FEED INC 318 HORSE FEED19396 170-2116-4201 282.36 Total : 282.3619396 80386 1/14/2016 LOU'S GLOVES, INC.011686 NITRILE GLOVES19669 001-2101-4306 340.00 Total : 340.0019669 80387 1/14/2016 MAGINE, JULIAN PO 8237 DISMISSED CITATION19651 001-3302 53.00 Total : 53.0019651 80388 1/14/2016 MICROSOFT CORPORATION E07001MV13 OFFICE 365 HOSTED EMAIL/NOV1517431 715-1206-4201 482.32 OFFICE 365 HOSTED EMAIL/NOV15E07001N1UA 715-1206-4201 146.37 OFFICE 365 HOSTED EMAIL/DEC15E07001QECX 715-1206-4201 148.35 OFFICE 365 HOSTED EMAIL/DEC15E07001QN89 715-1206-4201 488.72 01/14/2016 Check Register CITY OF HERMOSA BEACH 6 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 1,265.76 80388 1/14/2016 MICROSOFT CORPORATION17431 80389 1/14/2016 MID-CITY MAILING SERVICES CORP 21669 GENERAL PLAN MEETING INFO FLYER MAILING16541 001-4104-4305 6,765.00 Total : 6,765.0016541 80390 1/14/2016 OFFICE DEPOT 814177542001 OFFICE SUPPLIES/DEC1513114 001-4601-4305 8.92 OFFICE SUPPLIES/DEC15814487342001 001-1203-4305 30.13 OFFICE SUPPLIES/DEC15814487438001 001-1203-4305 13.71 OFFICE SUPPLIES/DEC15814487439001 001-1203-4305 37.18 Total : 89.9413114 80391 1/14/2016 OLYMPIC AUTO CENTER 13501 REPLACE REAR GLASS/'01 F25000093 715-3104-4311 261.60 Total : 261.6000093 80392 1/14/2016 ORTLEY TRANSPORTATION 5625 AFTERSCHOOL SHUTTLE 11/13/15-12/3/1517007 145-3411-4201 2,400.00 AFTERSCHOOL SHUTTLE 12/4/15-12/17/155626 145-3411-4201 2,400.00 Total : 4,800.0017007 80393 1/14/2016 PACIFIC MOBILE STRUCTURES INC 122115-42176 A CPI 15-607/FD MODULAR/RAMP INSTALL19541 001-8632-4201 1,295.00 Total : 1,295.0019541 80394 1/14/2016 PCR SERVICES CORPORATION 15-1310 CIP 14-632 FIRE TOWER DEMO HISTORICAL17096 001-8632-4201 75.44 CIP 14-632 FIRE TOWER DEMO HISTORICAL15-1483 001-8632-4201 1,093.75 CIP 14-632 FIRE TOWER DEMO HISTORICAL15-1895 001-8632-4201 1,623.75 CIP 14-632 FIRE TOWER DEMO HISTORICAL15-2258 001-8632-4201 1,948.75 Total : 4,741.6917096 01/14/2016 Check Register CITY OF HERMOSA BEACH 7 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80395 1/14/2016 PEPPARD, SCOTT PO 8244 DISMISSED CITATION19683 001-3302 53.00 Total : 53.0019683 80396 1/14/2016 PLUMBERS DEPOT INC PD-30154 TRASH/WATER PUMP FOR FLOODING15103 160-3102-4309 1,968.38 Total : 1,968.3815103 80397 1/14/2016 PLUSHNER, FRANCINE PO 8299 2015 ASSESSMENT TAX REBATE19688 105-3105 24.61 Total : 24.6119688 80398 1/14/2016 PRUDENTIAL OVERALL SUPPLY 40995120 MATS & SHOP TOWELS17676 001-3104-4309 27.18 MATS40995121 001-4204-4309 46.28 MATS40995122 001-3302-4309 29.78 MATS40995123 001-4204-4309 33.68 SHOP TOWELS40995124 715-4206-4309 19.68 UNIFORM RENTAL40995125 001-4202-4314 43.99 MATS40995126 001-2101-4309 33.08 MATS & SHOP TOWELS40995127 001-3104-4309 24.18 Total : 257.8517676 80399 1/14/2016 REDMOND, GEORGE DAVID 37088 LOCKSMITH SERVICES - DEC1513255 001-8632-4201 76.80 LOCKSMITH SERVICES - DEC1537090 001-3302-4309 158.08 Total : 234.8813255 80400 1/14/2016 RODRIGUEZ, ISABEL PO 8242 DISMISSED CITATION09745 001-3302 53.00 Total : 53.0009745 01/14/2016 Check Register CITY OF HERMOSA BEACH 8 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80401 1/14/2016 ROMO, ANAMARIE PO 8269 REFUND/PERMIT APPLICATION OVERPAYMENT19674 001-3227 272.00 Total : 272.0019674 80402 1/14/2016 SAFEWAY INC VONS 439138-121615-2110 SENIOR CENTER HOLIDAY PARTY SUPPLIES16425 001-4601-4328 52.03 Total : 52.0316425 80403 1/14/2016 SCHALL, JEFFREY PO 8251 DISMISSED CITATION19677 001-3302 53.00 Total : 53.0019677 80404 1/14/2016 SCHWERDT, LINDA OR GARY PO 7952 CITATION OVERPAYMENT REFUND19690 001-3302 53.00 Total : 53.0019690 80405 1/14/2016 SIEMENS INDUSTRY INC 5620006987 SIGNAL MAINT/DEC1507158 001-3104-4201 1,957.50 Total : 1,957.5007158 80406 1/14/2016 SLAVEN, MARY GENE PO 8238 DISMISSED CITATION16403 001-3302 38.00 Total : 38.0016403 80407 1/14/2016 SMALL, STEVEN PO 8156 CASH KEY REFUND07882 001-2117 21.00 001-3851 27.75 Total : 48.7507882 80408 1/14/2016 SMART AND FINAL IRIS COMPANY 3220630124212 JAIL SUPPLIES/NOV1500114 001-2101-4306 63.54 PARK PROGRAM SNACKS3220630124758 001-4601-4308 285.35 BUILDING NEEDS3220630125383 001-4601-4309 67.01 SENIOR CENTER SUPPLIES3220630125384 001-4601-4328 28.00 MAGIC CASTLE EXCURSION GOODY BAGS3220630125385 001-4601-4308 50.06 CLEANING SUPPLIES3220630125770 01/14/2016 Check Register CITY OF HERMOSA BEACH 9 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount 80408 1/14/2016 (Continued)SMART AND FINAL IRIS COMPANY00114 001-4204-4309 194.12 SENIOR CENTER SUPPLIES3220630138849 001-4601-4328 99.65 OFFICE SUPPLIES3220630138855 001-4601-4305 31.14 Total : 818.8700114 80409 1/14/2016 SOUTH BAY CENTER FOR December 31, 2015 DISPUTE RESOLUTION/2ND QTR10764 001-1132-4201 950.00 Total : 950.0010764 80410 1/14/2016 SOUTHERN CALIFORNIA EDISON CO 2-00-989-6911 ELECTRICAL BILLING - DEC1500159 105-2601-4303 85.94 ELECTRICAL BILLING - DEC152-00-989-7315 105-2601-4303 13,056.99 ELECTRICAL BILLING - DEC152-08-629-3669 001-4204-4303 127.23 ELECTRICAL BILLING - DEC152-19-024-1604 001-4204-4303 2,420.04 ELECTRICAL BILLING - DEC152-20-128-4825 001-3304-4303 1,260.49 ELECTRICAL BILLING - DEC152-20-128-5475 001-4204-4303 194.63 ELECTRICAL BILLING - DEC152-20-984-6369 105-2601-4303 59.24 ELECTRICAL BILLING - DEC152-23-725-4420 001-4204-4303 3,971.71 ELECTRICAL BILLING - DEC152-31-250-3303 001-4204-4303 51.19 ELECTRICAL BILLING - DEC152-36-722-1322 105-2601-4303 42.70 ELECTRICAL BILLING - DEC152-37-909-1838 001-4204-4303 373.37 Total : 21,643.5300159 80411 1/14/2016 STERICYCLE 3003255800 MEDICAL WASTE DISPOSAL - 3RD QTR10412 001-2101-4201 187.26 01/14/2016 Check Register CITY OF HERMOSA BEACH 10 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 187.26 80411 1/14/2016 STERICYCLE10412 80412 1/14/2016 SUNSTATE EQUIPMENT COMPANY 6419341-002 LIGHT TOWER RENTAL/NEW YEAR'S EVE14019 001-3301-4201 348.62 LIGHT TOWER RENTAL/NEW YEAR'S EVE6419342-002 001-3301-4201 168.62 LIGHT TOWER RENTAL/NEW YEAR'S EVE6419343-001 001-3301-4201 168.62 Total : 685.8614019 80413 1/14/2016 TANG, GERALD PO 8247 DISMISSED CITATION19681 001-3302 53.00 Total : 53.0019681 80414 1/14/2016 THE BANK OF NEW YORK MELLON 252-1917632 INVESTMENT SAFEKEEPING SERVICES/2ND QTR13270 001-1141-4201 875.00 Total : 875.0013270 80415 1/14/2016 TIME WARNER CABLE 8448 30 030 0049969 PD/CABLE/JAN1615277 001-2101-4201 56.25 PW/CABLE/INTERNET 1/16/16-2/15/168448 30 030 0088884 001-4202-4201 175.24 YARD/INTERNET 1/15/16-2/14/168448 30 030 0241681 715-1206-4201 87.01 Total : 318.5015277 80416 1/14/2016 TORRANCE AUTO PARTS December 2015 AUTO PARTS - DEC1516735 715-2101-4311 127.01 715-3104-4311 208.37 715-3302-4311 162.82 715-4206-4310 698.95 715-6101-4311 53.38 Total : 1,250.5316735 80417 1/14/2016 UNDERGROUND SERVICE ALERT 1220150312 UNDERGROUND SERVICE ALERT/DEC1508207 160-3102-4201 54.00 Total : 54.0008207 80418 1/14/2016 VCA COAST ANIMAL HOSPITAL 27629572 VET SERVICES/KEEF/DEC1509672 170-2105-4201 585.20 01/14/2016 Check Register CITY OF HERMOSA BEACH 11 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount (Continued)Total : 585.20 80418 1/14/2016 VCA COAST ANIMAL HOSPITAL09672 80419 1/14/2016 VELA, DIOCELINDA PO 8262 MILEAGE/CORRECTIONAL OFCR TRAIN &19540 001-2101-4313 222.02 Total : 222.0219540 80420 1/14/2016 VERIZON CALIFORNIA 310 318-8751 TAPS LINE/JAN1600015 001-1204-4304 57.41 Total : 57.4100015 80421 1/14/2016 WALLER, ANNETTE 2000499.003 EXCURSION REGISTRATION REFUND19689 001-2111 17.00 Total : 17.0019689 80422 1/14/2016 YEOMANS, MELITTA PO 8304 2015 ASSESSMENT TAX REBATE18368 105-3105 24.61 Total : 24.6118368 1201364822 1/13/2016 PITNEY BOWES INC ACH Debit POSTAGE METER REFILL/JAN1613838 001-1208-4305 1,000.00 Total : 1,000.0013838 1612111075 1/14/2016 ADMINSURE AS AGENT FOR THE 1/14/16 Check Run WORKER'S COMP CLAIMS REIMB/JAN1614691 705-1217-4324 21,661.83 Total : 21,661.8314691 Bank total : 118,178.65 76 Vouchers for bank code :boa 118,178.65Total vouchers :Vouchers in this report 76 01/14/2016 Check Register CITY OF HERMOSA BEACH 12 4:17:37PM Page: Bank code :boa Voucher Date Vendor Invoice Description/Account Amount "I hereby certify that the demands or claims covered by the checks listed on pages 1 to 12 inclusive, of the check register for 1-14-16 are accurate funds are available for payment, and are in conformance to the budget." By Finance Director Date 1-19-16 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0064 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 TENTATIVE FUTURE AGENDA ITEMS Recommended Action: To receive and file the tentative future agenda items. Attachments: Tentative Future Agenda Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ January 19, 2016 Honorable Mayor and Members Adjourned Meeting of of the Hermosa Beach City Council January 26, 2016 TENTATIVE FUTURE AGENDA ITEMS FEBRUARY 9, 2016 @ 5:00 PM CLOSED SESSION FEBRUARY 9, 2016 @ 6:00 PM STUDY SESSION: DOWNTOWN COST/BENEFIT FINANCE ANALYSIS FEBRUARY 9, 2016 @ 7:00 PM MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER CNG Station & Fueling Update Environmental Analyst Land Management System: Update Community Development Director Update on Athens Services: Current Services, AB1826 and Pier Plaza Compactor Environmental Analyst CONSENT CALENDAR Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of December 1, 2015 Community Resources Manager Project Touch Rent Waiver Community Resources Manager MOU to Implement the Coordinated Integrated Monitoring Program Environmental Analyst Award of Contract for Land Development Plan Check Services Public Works Director PUBLIC HEARINGS - 7:30 PM Marijuana Cultivation and Delivery Prohibition Ordinance City Attorney MUNICIPAL MATTERS Downtown Cost/Benefit Finance Analysis Finance Director Farmer’s Market Contract Update Community Resources Manager Collapsible Bollards, 35th Street & Strand Barricade and Miscellaneous Improvements Public Works Director Donation Policy and South Park Donation Program Community Resources Manager Response to Grand Jury report on El Nino planning for County Homeless population Management Analyst Fire MOU Premium Pay and Educational Incentive Modification Human Resources Manager FEBRUARY 23, 2016 @ 6:00 PM STUDY SESSION: HERMOSA BEACH SENIOR REBATE PROGRAM FOR THE SEWER CHARGE FEBRUARY 23, 2016 @ 7:00 PM PRESENTATIONS CHAMBER OF COMMERCE PRESENTATION – RECAPPING 2015 EVENTS, CONTRIBUTIONS AND GOALS CONSENT CALENDAR Recommendation to receive and file the action minutes of the Planning Commission meeting of February 16, 2016 Community Development Director Planning Commission Tentative Future Agenda Community Development Director PUBLIC HEARINGS - 7:30 PM Introduction of Social Host Ordinance Police Chief MUNICIPAL MATTERS Chamber Sponsorships and Promotions at Events Community Resources Manager Hermosa Arts Foundation Relationship and Community Theater, Funding, Partnership Discussion Community Resources Manager Before/After School Program Update Community Resources Manager Mid-Year Budget Review Finance Director 2 MARCH 2, 2016 @ 6:00 PM ISSUE PAPERS STUDY SESSION (Continued from January 9, 2016) MARCH 8, 2016 @ 6:00 PM CLOSED SESSION: QUARTERLY LITIGATION UPDATE MARCH 8, 2016 @ 7:00 PM MUNICIPAL MATTERS Long-term Reduced/Free Daytime Parking Program & Possible Chamber Marketing Plan - Council Discussion/Direction (Only after Council direction regarding Phase 2 purchases) Management Analyst Introduction of Hermosa Beach Social Host Ordinance Police Chief Text Amendment to implement the Downtown Core Revitalization Strategy by modifying the Parking Ordinance to allow the use of a parking credit for conversion of a non-restaurant use to a restaurant use for commercial spaces smaller than 5,000 square feet, on a case-by-case basis Community Development Director A-Frame Signs Community Development Director Homeless Strategy and Action Plan Update/Direction Management Analyst MARCH 19-20, 2016 @ 8:00 AM – 5:00 PM STRATEGIC PLANNING MARCH 22, 2016 @ 6:00 PM STUDY SESSION: CALPERS REVIEW WITH JOHN BARTEL MARCH 22, 2016 @ 7:00 PM MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER Quarterly Update – Strategic Plan Action Agenda Tracking Management Analyst CONSENT CALENDAR Recommendation to receive and file the action minutes of the Emergency Preparedness Advisory Commission meeting of November 2, 2015 and January 4, 2016 Interim Fire Chief Recommendation to receive and file the action minutes of the Planning Commission meeting of March 15, 2016 Community Development Director Planning Commission Tentative Future Agenda Community Development Director Recommendation to receive and file the action minutes of the Public Works Commission meeting of January 20, 2016 Public Works Director PUBLIC HEARINGS - 7:30 PM Amend the Municipal Code by Adding Chapter 5.76 (Tobacco Retailers) Requiring Licensure of Tobacco Retailers to Reduce the Illegal Sale of Tobacco Products to Minors, Amending Chapter 8.40 to Expand the Definition of Tobacco Products to Include Electronic Cigarettes and Flavored Tobacco, and Making Violations of Chapter 5.76 Subject to Administrative Penalty Procedures (Continued from meeting of August 25, 2015) Community Development Director MUNICIPAL MATTERS Smoking Ordinance Enforcement Update Community Development Director 3 PENDING ITEMS Consideration of reduction of business license fee request from Carol G. Weiss, Ph.D.Finance Director Ethics Policy City Manager & Finance Director Food Trucks – Policy Discussion Community Development Director Hope Chapel Development City Manager/Economic Dev Officer Additional Bike Paths Discussion Public Works Director Award Construction Contract for CIP 13-655 City Facilities ADA Improvements Public Works Director Cooperative Agreement with CalTrans (Continued from meeting of April 14, 2015)Public Works Director Community Risk Analysis Fire Chief Council Chambers: City Logo and Name on Council Chambers Wall Dais Layout AV Podium for presentations City Manager / Public Works Director Update Personnel Policies Human Resources Manager Update on Use of Community Dialogue Decision Making Tool City Manager Phase 3 Recommendation for Purchase - Council Discussion/Direction (Upgrades of remaining citywide coin meters) Management Analyst / Police Chief Policy on procedure for voting on Boards/Commissions Applicants City Clerk National Citizen Survey Overview Human Resources Manager Speed Signs Survey Public Works Director APRIL 2016 Short-Term Vacation Rental Community Development Director Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of February 2, 2016 Community Resources Manager Recommendation to receive and file the action minutes of the Planning Commission meeting of April 19, 2016 Community Development Director User Fee Study Presentation (5 years)Finance Director Fee Adjustments Finance Director MAY 2016 Recommendation to receive and file the action minutes of the Emergency Preparedness Advisory Commission meeting of March 7, 2016 Interim Fire Chief Recommendation to receive and file the action minutes of the Planning Commission meeting of May 17, 2016 Community Development Director Recommendation to receive and file the action minutes of the Public Works Commission meeting of March 16, 2016 Public Works Director JUNE 2016 Appointment of Mayor and Mayor Pro Tempore City Clerk Quarterly Update – Strategic Plan Action Agenda Tracking Management Analyst Quarterly Litigation Update Human Resources Manager Recommendation to receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of April 5, 2016 Community Resources Manager Recommendation to receive and file the action minutes of the Planning Commission meeting of June 21, 2016 Community Development Director JULY 2016 Recommendation to receive and file the action minutes of the Emergency Preparedness Advisory Commission meeting of May 2, 2016 Interim Fire Chief Recommendation to receive and file the action minutes of the Planning Commission meeting of July 19, 2016 Community Development Director Recommendation to receive and file the action minutes of the Public Works Commission meeting of May 18, 2016 Public Works Director Sewer Replacement Program and Fee Overview Presentation Public Works Director / Jeff Cooper Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0070 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 REVENUE AND EXPENDITURE REPORTS FOR DECEMBER 2015 (Finance Director Viki Copeland) Recommended Action: To receive and file the memorandum regarding the December 2015 Financial Reports. Summary: The December Revenue and Expenditure reports will be submitted with the Midyear Budget report in February. Respectfully Submitted by: Viki Copeland, Finance Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0090 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 CITY TREASURER’S REPORT AND CASH BALANCE REPORT (City Treasurer Karen Nowicki) Recommended Action: To receive and file the December, 2015 City Treasurer’s Report and Cash Balance Report. Summary: 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 December,2015.This is the most current available investment information. Attachments: 1.City Treasurer’s Report 2.Cash Balance Report Respectfully Submitted by: Karen Nowicki, City Treasurer Noted for Fiscal Impact: Viki Copeland, Finance Director Concur: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ TREASURER'S REPORT DECEMBER 2015 INSTITUTIONS RATE YELD DATE OF DATE OF ORIGINAL MARKET *COST/MARKET FACE/PAR OF TO %WEIGHTED INVESTMENT TYPE/INSTITUTION CUSIP #BOOK VALUE INVESTMENT MATURITY COST VALUE DIFFERENCE VALUE INTEREST MATURITY TOTAL YIELD POOLED INVESTMENTS LAIF (Local Agency Investment Fund)$1,535,072.35 $1,535,072.35 0.370%4.755% LACPIF (Los Angeles County Pooled Investment Funds)$25,816,601.58 $25,816,601.58 0.750%79.924% Pooled Investments % of Total Investment 84.676%$27,351,673.93 CORPORATE NOTES General Electric Capital Corporation 36962G6R0 $500,000.00 8/16/2013 1/8/2016 $500,452.78 $500,005.00 ($447.78)$500,000.00 1.000%1.000%1.548%1.548% Corporate Notes % of Total Investment 1.548%$500,000.00 AGENCIES Federal Home Loan Mortgage 3137EADK2 $490,917.44 8/1/2014 8/1/2019 $487,250.00 $494,440.00 $7,190.00 $500,000.00 1.250%1.785%1.520%2.713% Agencies % of Total Investment 1.520%$490,917.44 NEGOTIABLE CDS BMW Bank of Northern America 05568PW29 $248,000.00 4/13/2012 4/13/2016 $247,032.80 $248,485.26 $1,452.46 $248,000.00 1.250%1.350%0.768%1.037% Goldman Sachs Bank 38143AQB4 $247,000.00 4/18/2012 4/18/2017 $247,000.00 $249,178.89 $2,178.89 $247,000.00 1.850%1.850%0.765%1.415% Banco Bilbao 059457UM1 $248,922.00 4/20/2012 4/20/2016 $248,004.00 $249,559.41 $1,555.41 $249,000.00 1.300%1.403%0.771%1.082% Farmers and Merchants 308862DA6 $248,000.00 9/20/2013 9/20/2016 $248,000.00 $248,204.73 $204.73 $248,000.00 1.000%1.000%0.768%0.768% First Merchant Bank 32082BCY3 $248,000.00 3/21/2014 9/21/2017 $248,000.00 $247,274.14 ($725.86)$248,000.00 1.000%1.000%0.768%0.768% Ally Bank 02006LEH2 $248,000.00 5/7/2014 5/8/2017 $248,000.00 $247,755.92 ($244.08)$248,000.00 1.100%1.100%0.768%0.845% Sallie Mae Bank 795450UB9 $248,000.00 10/22/2014 10/22/2019 $248,000.00 $253,630.27 $5,630.27 $248,000.00 2.150%2.150%0.768%1.651% American Express Bank 02587CCC2 $247,000.00 10/23/2014 10/23/2019 $247,000.00 $253,073.27 $6,073.27 $247,000.00 2.200%2.200%0.765%1.683% Peoples UTD Bank 71270QLM6 $247,000.00 1/21/2015 1/21/2020 $247,000.00 $249,576.92 $2,576.92 $247,000.00 1.850%1.850%0.765%1.415% Private Bank and Trust 74267GUU9 $248,000.00 1/23/2015 1/23/2020 $248,000.00 $251,083.44 $3,083.44 $248,000.00 1.900%1.900%0.768%1.459% Discover Bank 254672QE1 $248,000.00 6/17/2015 6/17/2020 $248,000.00 $252,880.63 $4,880.63 $248,000.00 2.100%2.100%0.768%1.613% Capital One Bank 140420SH4 $248,000.00 6/17/2015 6/17/2020 $248,000.00 $254,062.29 $6,062.29 $248,000.00 2.150%2.150%0.768%1.651% Capital One Nat'l Assn 14042E5U0 $246,000.00 8/19/2015 8/19/2020 $246,000.00 $253,419.47 $7,419.47 $246,000.00 2.400%2.400%0.762%1.829% Everbank Jacksonville 29976DA59 $245,000.00 8/28/2015 8/28/2020 $245,000.00 $249,188.39 $4,188.39 $245,000.00 2.050%2.050%0.758%1.554% American Express Centurion 02587DF86 $247,000.00 11/4/2015 11/4/2020 $247,000.00 $253,282.64 $6,282.64 $247,000.00 2.250%2.250%0.765%1.721% Synchrony Bank 87164YKW3 $247,000.00 11/20/2015 11/20/2020 $247,000.00 $252,753.00 $5,753.00 $247,000.00 2.200%2.200%0.765%1.683% Negotiable CD % of Total Investment 12.256%$3,958,922.00 100.007% TOTAL ALL INVESTMENTS $32,301,513.37 $4,944,739.58 $5,007,853.67 $63,114.09 $32,310,673.93 Average Rate of Interest 1.606% Average Yield to Maturity 1.763% 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. APPROVED: KAREN NOWICKI, CITY TREASURER CASH BALANCE REPORT DECEMBER 2015 GENERAL ACCOUNT FUND 12/1/2015 12/31/2015 NUMBER FUND NAME BALANCE CASH ADJUSTMENTS CHECKS ADJUSTMENTS BALANCE 001 GENERAL $7,117,903.37 $6,115,118.79 $268,555.56 ($2,807,753.09)($776,804.65)$9,917,019.98 105 LIGHTING/LANDSCAPING ($120,769.58)$182,767.02 $2,246.98 ($36,599.85)(15,922.04)$11,722.53 115 STATE GAS TAX $304,107.36 $40,295.07 $30,745.40 ($26,333.00)$348,814.83 117 AB939 $15,896.38 $0.22 ($5,039.98)(1,828.48)$9,028.14 121 PROP A OPEN SPACE ($12,235.00)(1,713.00)($13,948.00) 122 TYCO $663,203.66 $38,855.64 $5,936.43 $707,995.73 123 TYCO TIDELANDS $2,590.97 $23.19 $2,614.16 125 PARK REC FAC TAX $200,890.35 $41,980.00 $1,803.39 (25,452.00)$219,221.74 135 BAYVIEW DRIVE DISTRICT ADMIN EXPENSE ($964.87)$4,283.36 $0.02 (239.00)$3,079.51 136 LOWER PIER DISTRICT ADMIN EXPENSE $2,645.85 $2,545.32 (187.00)$5,004.17 137 MYRTLE DRIVE DISTRICT ADMIN EXPENSE $7,247.61 $8,918.02 $64.86 (439.00)$15,791.49 138 LOMA DRIVE DISTRICT ADMIN EXPENSE $13,325.17 $9,908.66 $119.17 ($476.00)$22,877.00 139 BEACH DRIVE ASSESSMENT ADMIN EXPENSE $1,061.78 $2,941.16 $9.51 (158.00)$3,854.45 140 COMMUNITY DEVELOPMENT BLOCK GRANT $0.00 $36,608.00 (33,121.75)$3,486.25 145 PROPOSITION A $857,486.82 $529.50 $40,712.85 (15,133.44)(8.98)$883,586.75 146 PROPOSITION C $872,929.43 $35,184.21 $908,113.64 147 MEASURE R $593,437.00 $26,050.13 (18,252.50)$601,234.63 150 GRANTS ($35,194.25)$135,660.82 $0.83 (45,764.16)$54,703.24 152 AIR QUALITY MANAGEMENT DISTRICT $35,137.11 $6,210.90 $314.43 (113.11)(7.41)$41,541.92 153 SUPPLEMENTAL LAW ENFORCEMENT SERVICES $10,700.66 $19,514.91 $96.05 (854.80)$29,456.82 160 SEWER MAINTENANCE $3,795,527.49 $386,377.56 $23,126.50 (10,337.10)(4,148.22)$4,190,546.23 161 STORM DRAINS FUND $98,923.85 $35,317.00 (11,282.31)(8,070.78)$114,887.76 170 ASSET SEIZURE $47,257.24 $425.22 (357.63)$47,324.83 180 FIRE PROTECTION $58,074.72 $3,016.81 $519.74 $61,611.27 301 CAPITAL IMPROVEMENT $3,844,774.52 $73.13 $3,844,847.65 302 ARTESIA BLVD RELINQUISHMENT FUND $15.43 $0.22 $15.65 609 BAYVIEW DRIVE DISTRICT REDEMPTION $95,474.71 $21,476.56 $854.03 $117,805.30 610 LOWER PIER DISTRICT REDEMPTION $17,492.80 $14,246.51 $156.77 $31,896.08 611 BEACH DRIVE DISTRICT REDEMPTION $48,657.59 $10,893.94 $435.28 $59,986.81 612 BEACH DRIVE DISTRICT RESERVE $4,170.32 $37.27 $4,207.59 617 MYRTLE DRIVE DISTRICT REDEMPTION $53,057.28 $31,212.51 $475.36 $84,745.15 618 LOMA DRIVE DISTRICT REDEMPTION $66,758.88 $33,614.72 $597.94 $100,971.54 619 BAYVIEW DRIVE DISTRICT RESERVE $13,694.07 $122.39 $13,816.46 705 INSURANCE $9,942,878.88 $265,582.19 (108,945.83)(26,582.12)$10,072,933.12 715 EQUIPMENT REPLACEMENT $4,361,647.95 $6,908.50 $133,225.98 (106,072.82)(10,526.87)$4,385,182.74 900 INVESTMENT $0.00 $5,488.27 $61,570.38 (67,058.65)$0.00 TOTAL GENERAL ACCOUNT $32,977,805.55 $7,122,764.55 $970,990.63 ($3,225,080.37)($940,503.20)$36,905,977.16 TRUST BALANCE BALANCE ACCOUNTS 12/1/2015 DEPOSITS CHARGES 12/31/2015 PAYROLL $5,895.54 $1,525,429.13 ($1,517,910.89)$13,413.78 CABLE TV DEPOSIT $16,568.95 $16,568.95 $22,464.49 $29,982.73 TOTAL ALL ACCOUNTS $36,935,959.89 $32,301,513.37 BANK BALANCES INVESTMENTS GENERAL $5,144,741.64 TRUST ACCOUNTS $43,110.57 $5,187,852.21 $89,591.09 OUTSTANDING CHECKS ($553,405.69) INTEREST COLLECTED $4,634,446.52 TO DATE FOR FY 15/16 INVESTMENTS $32,301,513.37 BALANCE $36,935,959.89 APPROVED : KAREN NOWICKI, CITY TREASURER Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0056 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 ACTION SHEET OF THE PLANNING COMMISSION MEETING OF JANUARY 19, 2016 Recommended Action: To receive and file the action sheet of the Planning Commission meeting of January 19, 2016. Attachments: Action Sheet of January 19, 2016. Approved:Ken Robertson, Community Development Director Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0057 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS (Community Development Director Ken Robertson) Recommended Action: To receive and file the February 16, 2016 Planning Commission tentative future agenda items. Attachment: Planning Commission February 16, 2016 Tentative Future Agenda Respectfully Submitted by: Ken Robertson, Community Development Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Tentative Future Agenda PLANNING COMMISSION City of Hermosa Beach February 16, 2016 7:00 P.M. Project Title Public Notice Meeting Date Date Rec’d Remarks  Provide semi-annual Conditional Use Permit review staff report as an informational item. 2/16  501 11th Street—a (3) unit condo. 2/4 2/16 12/21/15  637 7th Street—a (2) unit condo. 2/4 2/16 12/21/15  715 2nd Street—a (2) unit condo. 2/16  TA to the Municipal Code, Title 17 (Zoning) to allow a parking credit for conversion of non-restaurant use within the Downtown District in conjunction with approval of a Parking Plan, and adoption of an Environmental Negative Declaration (cont’d from 11/17/15 PC). 2/4 2/16  Discussion and direction regarding short-term vacation rentals (Tentative) 2/16 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0062 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF NOVEMBER 18, 2015 Recommended Action: To receive and file the action minutes of the Public Works Commission meeting of November 18, 2015. Attachments: Minutes of November 18, 2015 Approved: Andrew Brozyna, Public Works Director Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ ACTION MINUTES PUBLIC WORKS COMMISSION MEETING OF WEDNESDAY, NOVEMBER 18, 2015 CITY HALL, COUNCIL CHAMBERS 1315 VALLEY DRIVE COMMISIONERS Janice Brittain Kathy Dunbabin Kimberlee MacMullan Justin Schnuelle Andrea Giancoli All public testimony and the deliberations of the Public Works Commission can be viewed on the City’s website at http://www.hermosabch.org/index.aspx?page=358. 1. Call to Order 7:00 PM 2. Flag Salute 3. Roll Call Present: Commissioner Brittain, Commissioner Dunbabin, Commissioner Schnuelle, Commissioner Giancoli, and Chairwoman MacMullan. Also present: Andrew Brozyna, Public Works Director/City Engineer; Ells Freeman, Public Works Superintendent; Homayoun Behboodi, Associate Engineer; Joel Ortiz, Assistant Engineer; Scott Ma, Traffic Engineer; Kristy Morris, Environmental Analyst; and Liz Zeigler, Management Analyst. 4. Approval of Action Minutes for September 16, 2015 ACTION: MOTION was made to approve the action minutes of September 16, 2015 as presented, seconded and the motion carried by a vote of 4-0; Commissioner Dunbabin abstained. 5. Public Comment: Anyone wishing to address the Commission on items not on the agenda and pertaining to Public Works may do so at this time. Alan Thomen, 909 16th Street, urged the Commission to move the City towards becoming a green city and to have contractors put in more sustainable and higher oxygen producing foliage in the City. Rosalind Bender, 909 16th Street, advocated for a view variance ordinance. 6. Correspondence Correspondence was received regarding agenda items 8a, 8b, and 8c and was marked as ‘supplemental’ and posted on the City’s website. 7. Presentations None 8. Items for Consideration a. Request for Installation of Speed Cushions on 16th Street Between Mira Street and Bonnie Brae Street Mr. Behboodi presented the staff report. Commissioner Giancoli inquired about the other recommendations presented by the Traffic Engineer. 2 Scott Ma, Traffic Engineer, informed the Commission that the other recommendations have already been implemented. Public Comment was as follows: Allison Marer, 1015 15th Place, supported the speed cushions and requested that if the second speed cushion cannot be put in that some other traffic calming measures be implemented at that location. Melinda Brown, 929 16th Street, sponsor of the speed cushions, pointed out that the resident at 1005 15th Street is incapacitated and cannot vote and steps have been taken to locate her legal guardians to determine if they can vote for her so only one of the voting residents is opposed. Ms. Brown showed the Commission a picture of the street with children walking to school and pointed out that 16th Street has a Safe Route to School designation and thus requested that the Commission make an exception to the rule that 100% of the adjacent properties must agree to the installation. Ms. Brown also indicated that the Police Department supported the installation of the speed cushions. Ms. Brown presented comments from the sponsor of a speed cushion on Raymond that stated the speed cushion has provided a significant increase in safety to pedestrians and autos exiting garages, had zero complaints from residents, and noise level is insignificant to nonexistent. Alan Thomen, 909 16th Street, opposed the speed cushions despite speeding problems on street because noise will increase as a result of people powering through the cushions and will slow down emergency vehicles, and children will use the cushions for skateboarding. Rosalind Bender, 909 16th Street, opposed the speed cushions due to safety reasons because the street is a thorough way for cars traveling from PCH to Prospect, the street is too narrow and below the City standard, additional parking difficulties, and safety issues caused by cars navigating to park. Ms. Bender also stated that she is concerned about the time and cost of removing the speed cushions if residents don’t want them and about the challenge cushions will pose to emergency vehicles. David Adler, 943 15th Place, stated that when the 16th Street traffic light was put in it increased traffic and when the sidewalk was added and 16th Street was designated as a SR2S it increased the City’s liability because cars speed on this street. Mr. Adler also read comments from another resident, Kyle Clifford, a member of the Los Angeles Kings who lived on the street that urged the Commission to install the cushions. Mr. Adler asked the Commission to install two speed cushions. Paul Torres, 959 15th Place, also supported the installation of the cushions because of speeding problems on the street. Robert Andriani, 945 16th Street, stated that the policies and procedures are for the City’s benefit and can be waived by the Commission and that the Commission should use its discretion to approve the second speed hump to ensure the safety of children. Additional comments by the Commissioners were as follows: Brittain: inquired as to whether the area on Prospect right before Bonnie Brae was considered for a cushion; Mr. Behboodi stated the area was too close to the intersection and thus could not be used. Dunbabin: asked if the Policies and Procedures are set in stone; Mr. Brozyna indicated they are guidelines. Commissioner Dunbabin clarified that out of the four required votes, two residents are in favor, one is not able to vote, and the other resident is opposed. Schnuelle: asked if the location of the approved cushion would change if only one cushion was approved; Mr. Behboodi stated the location does not change. Commissioner Schnuelle proceeded to state that he thought two speed humps are appropriate. Giancoli: asked about the nature of the cushions; Mr. Behboodi said the cushions are hard but made of rubber and are easy to install and remove. Giancoli also asked about other calming measures; the Traffic Engineer indicated that additional enforcement has been tried and other measures have been exhausted. 3 Brittain: asked clarification on the number of residents stating opposition on the petition; Staff clarified that two hurdles must be met per the Speed Hump Policy and Procedures, 67% of residents on the petition need to approve and 100% of the residents adjacent to the cushion must approve. MacMullan: stated that she recognizes that speeding is a problem in the City. Brittain: not comfortable going against the Policy and Procedures and supported only installation of one speed cushion. Schnuelle: stated support for two cushions. ACTION: Motion was made by Commissioner Giancoli to install a speed cushion at 929 16 th Street and that the second speed cushion between 1005-11 16 th Street be installed as a 6 month pilot program with a baseline traffic study prior to installation and with a 6 month follow-up traffic study, seconded by Commissioner Dunbabin, the motion failed 3-2; Brittain, Schnuelle, and MacMullan opposed. Commissioner Brittain made a motion to install a speed cushion at 929 16th Street with a recommendation to City Council to approve a variance to the Speed Hump Policy and Procedures in order to install a second speed cushion between 1005-11 16th Street, seconded by Dunbabin, the motion passed 4-1; Giancoli oppposed. b. CIP 14-163 Flexible Bollard Markers at Various Locations Along The Strand Mr. Joel Ortiz presented the staff report. Commissioner comments to Staff were as follows: Commissioner Schnuelle: questioned whether one bollard was sufficient at 10th St. and 11th St.; Mr. Brozyna said additional bollards at these locations can be considered. Commissioner Giancoli: agreed with Commissioner Schnuelle that additional bollards were necessary at 10th St. and 11th St. ACTION: Motion was made by Commissioner Brittain that the Commission approve the installation of bollards as recommended by Staff and the motion was seconded by Commissioner Dunbabin. The motion was amended by Commissioner Schnuelle to recommend the installation of three bollards at 10th St. and 11th St. and two bollards at 35th St., but the amendment failed. Commissioner Dunbabin amended the original motion by Commissioner Brittain to recommend installation of two bollards at 10th St., the motion was seconded, and the motion passed 4-1; Schnuelle opposed. c.Location Of Electric Vehicle Charging Stations Kristy Morris presented the staff report and clarified that there are eight locations with an available power source. Rick Learned of 251 Valley Drive and Jeff Duclos, both part of the committee that worked on the project supported the staff’s recommendation. ACTION: Motion was made by Commissioner Schnuelle to recommend that the Public Works Commission make a recommendation to City Council to locate Electric Vehicle charging stations at priority locations throughout the City as indicated in Table 1 of the report, seconded by Commissioner Brittain, motion passed 5-0. d. Purchase of Solar Bollards for Bicycle Mini-Corrals Kristy Morris presented the staff report informed the Commission that the loop bike racks at each mini corral are powder coated with the City’s logo colors so silver may be the most complimentary color and that staff preferred the Solispost bollard, but would be comfortable with either bollard. Ms. Morris said there is about $1,000 difference between the bollard options and the City plans on purchasing four bollards that would sit on the street thus protecting the bikes. Giancoli: commented that she likes the Solispost, but wanted the bollards in one of the logo colors so that they would be more noticeable to drivers. Dunbabin: asked whether the light radiates from all four sides; Mr. Freeman indicated that the light comes out of one side. 4 ACTION:Motion was made by Commissioner Schnuelle to recommend that the Public Works Commission make a recommendation to City Council to purchase the Solispost solar bollards in a color complimentary to the bike racks but not silver for the bicycle mini-corrals, seconded by Commissioner Dunbabin, and motion passed 5-0. e.Appointment of the Public Works Commission Chairperson for 2016 and receive and file the proposed Public Works Commission 2016 Meeting Schedule ACTION: Motion was made by Commissioner Brittain to recommend that the Public Works Commission (PWC) appoint Commissioner Schnuelle as the PWC Chairperson for 2016, seconded by Commissioner Giancoli, and motion passed 5-0. ACTION: Motion was made by Commissioner Brittain to recommend that the Public Works Commission receive and file the attached PWC 2016 Meeting Schedule, seconded by Commissioner Giancoli, motion passed 5-0. 9. Commissioners’ Reports ACTION: None 10. Monthly Reports ACTION: None 11. Commissioners’ Announcements ACTION: None 12. The Regular Meeting of the Public Works Commission for November 18, 2015 was adjourned at 9:02p.m. to the Regular meeting of Wednesday, January 20, 2016 at 7 pm. Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0065 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 CIP NO. 10-661 SURFING LEGENDS MEMORIAL STATUE COMPLETION OF CONSTRUCTION CONTRACT AND ACCEPTANCE OF WORK (Director of Public Works Andrew Brozyna) Recommended Action: It is recommended that the City Council: 1.Accept the work performed by Concept Consultant,Inc.for CIP No.10-661 Surfing Legends Memorial Statue; 2.Authorize the Mayor to sign the Notice of Completion; and 3.Authorize staff to release payment to Concept Consulting,Inc.(5%retained for 35 days following filing of Notice of Completion). Background: The project consists of a bronze statue set on top of a water feature surrounded by an ocean friendly garden using only drought tolerant plants.The garden includes two distinct features surrounding the fountain and statue.One portion of the garden emulates a coral reef and the other portion of the garden emulates waves surrounding the coral reef effect.The water feature includes lighting to enhance the statue and a water circulator with a mild bubble effect in order to reduce the evaporation rate. In November 2014,City Council approved a contract with Nuvis Consultants,Inc.(Nuvis)to provide design engineering services. On May 12,2015,the City Council awarded a construction contract to Concept Consultant,Inc.for CIP No.10-661 Surfing Legends Memorial Statue.The work is now complete and staff recommends that City Council accept the work performed by Concept Consultant,Inc.and authorize the Public Works Director to submit for recordation of a Notice of Completion for the project. Fiscal Implications: The original construction contract amount was $304,576.55 funded through generous donations and some general fund monies.There were five (5)change orders for this project.Some change orders were a result of added alternates included into the project and additional work needed,while others Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0065 were a result of added alternates included into the project and additional work needed,while others resulted in a credit to the City based on actual field measured quantities of some bid items being less than plan quantities. The total actual work completed is in the amount of $324,297.55. There is currently sufficient funding in the General Fund to pay the Contractor’s 5% retention in the amount of $16,214.88. Attachments: 1.Notice of Completion Respectfully Submitted by: Brian Elkins, Construction Manager Concur: Andrew Brozyna, Director of Public Works/City Engineer Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of Hermosa Beach Office of the City Clerk 1315 Valley Drive Hermosa Beach, CA 90254 SPACE ABOVE THIS LINE FOR RECORDER'S USE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion (See reverse side for Complete requirements.) Notice is hereby given that: 1.The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2.The full name of the owner is City of Hermosa Beach 3.The full address of the owner is 1315 Valley Drive Hermosa Beach, CA 90254 4.The nature of the interest or estate of the owner is; In fee. N/A (If other than fee, strike "In fee" and insert, for example "purchaser under contract of purchase," or "lessee") 5.The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES City of Hermosa Beach A Municipal Corporation 1315 Valley Drive, Hermosa Beach, CA 90254 6.A work of improvement on the property hereinafter described, was completed on November 6, 2015 The work done was: The proposed project consists of performing miscellaneous sewer repairs citywide including spot repairs, sectional pipeline repairs, cure-in place lining installation, and manhole additions/repairs 7.The name of the contractor, if any, for such work of improvement was: Concept Consultant, Inc. 1220 Manning Avenue, #13 Los Angeles, CA 90024 May 12, 2015 (If no contractor for work of improvement as a whole, insert "none".) (Date of Contract) 8.The property on which said work of improvement was completed is in the city of Hermosa Beach County of Los Angeles, State of California, and is described as follows: CIP No. 10-661 – Surfs Legends Memorial Statue 9.The street address of said property is: “None” (If no street address has been officially assigned, insert "none".) Dated: January 26, 2016 Verification for Individual Owner _____________________________________________________________ Mayor Attachment 1 VERIFICATION I, the undersigned, say: I am the Mayor of the City of Hermosa Beach the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on January 26 2016, at Hermosa Beach, California (Date of signature.) Mayor of Hermosa Beach 2 Attachment 1 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0072 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 CIP NO. 13-401 SEWER IMPROVEMENTS AT VARIOUS LOCATIONS CONSTRUCTION COMPLETION AND ACCEPTANCE OF WORK (Director of Public Works Andrew Brozyna) Recommended Action: It is recommended that the City Council: 1.Accept the work performed by Vasilj Inc.for CIP Project No.13-401 Sewer Improvements at Various Locations as complete; 2.Authorize the Mayor to sign the Notice of Completion; and 3.Authorize staff to release payment to Vasilj Inc.(5%retained 35 days following filing of Notice of Completion). Background: On April 22,2014,the City Council awarded a construction contract to Vasilj Inc.for CIP No.13-401 Sewer Improvements -Various Locations.This project consisted of performing repairs and or reconstructing segments of the deteriorated or damaged sewer pipes at various locations,replacing existing sewer manholes as well as constructing new manholes.The project also included implementing a sewer repair lining system for the sewer main to improve sewer flow and reduce the possibility of any sewer spills. Change orders were issued for CIP No.13-401 Sewer Improvements.The first change order was for replacement of additional deteriorated sewer mainline in the amount of $11,525.The second change order,authorized by the City Council on December 9,2014 (in the amount of $138,130),was for construction of a reclaimed waterline on Herondo Street.The third change order was initiated by the contractor due to an unforeseen field condition.This unforeseen condition required realignment of the reclaimed waterline due to conflicts with existing underground utilities.Staff requested a cost estimate from the contractor for the realignment of the reclaimed water line to avoid conflicting utilities.The cost estimate was excessive and an agreed price could not be agreed upon by both parties.Per the Greenbook (Standard Specifications for Public Works Construction)if an agreed price cannot be reached the contractor should proceed with the disputed work and payment shall be determined by Time and Materials (T&M) reports. The Contractor commenced with the T&M work and the project is complete.The City has received a Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0072 The Contractor commenced with the T&M work and the project is complete.The City has received a payment request for the T&M work.Staff believes that the amount is excessive and is disputing a portion of the T&M billings. The amount in dispute is approximately $66,619. Staff recommends that the City Council accept the work by Vasilj Inc.for CIP No.13-401 Sewer Improvements at various locations as complete.Staff and the contractor are seeking resolution for the T&M change order billings.Negotiations have been initiated by both parties and a resolution is forthcoming. Fiscal Implications: The contractor’s original contract amount was $316,050.The total change orders bring the contract amount to $465,705.The final contract amount is dependent on the resolution of the T&M change order billing dispute. 5%of the approved contract amount totaling $23,285.25 has been withheld for retention and will be released upon Council approval and 35 days following filing of Notice of Completion. FY 15-16 Remaining Budget Amount: Sewer Fund (160-8401-4201) ………………………….…… $34,578 Grant Fund (150-8401-4201)………………………………… $12,500 Equipment Replacement Fund (301-8401-4201)…………..$82,750 Total Funding: $129,828 Adequate funding is available in the amount of $129,828 in FY 15-16 budget (as shown above)to pay the contractor the 5% retention as well as T&M change order billings when resolved. Attachments: 1.Notice of Completion Respectfully Submitted by: Homayoun Behboodi, Associate Engineer Concur: Andrew Brozyna, Director of Public Works/City Engineer Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ RECORDING REQUESTED BY AND WHEN RECORDED MAIL TO City of Hermosa Beach Office of the City Clerk 1315 Valley Drive Hermosa Beach, CA 90254 SPACEABOVETHISLINEFORRECORDER'SUSE NOTICE OF COMPLETION Notice pursuant to Civil Code Section 3093, must be filed within 10 days after completion (See reverse side for Complete requirements.) Notice is hereby given that: 1.The undersigned is owner or corporate officer of the owner of the interest or estate stated below in the property hereinafter described: 2.The full name of the owner is City of Hermosa Beach 3.The full address of the owner is 1315 Valley Drive Hermosa Beach, CA 90254 4.The nature of the interest or estate of the owner is; In fee. N/A (If other than fee, strike "In fee" and insert, for example "purchaser under contract of purchase," or "lessee") 5.The full names and full addresses of all persons, if any, who hold title with the undersigned as joint tenants or as tenants in common are: NAMES ADDRESSES City of Hermosa Beach A Municipal Corporation 1315 Valley Drive, Hermosa Beach, CA 90254 6.A work of improvement on the property hereinafter described, was completed on May 5, 2015 The work done was: 7.The name of the contractor, if any, for such work of improvement was Vasilj Inc. 15531 Arrow HWY Irwindale, CA 91706 April 22, 2014 (If no contractor for work of improvement as a whole, insert "none".)(Date of Contract) 8.The property on which said work of improvement was completed is in the city of Hermosa Beach County of Los Angeles,State of California, and is described as follows: CIP PROJECT NO. 13-401 SEWER IMPROVEMENTS AT VARIOUS LOCATIONS 9.The street address of said property is “none” ( If no street address has been officially assigned, insert "none".) Dated:January 26, 2016 Verification for Individual Owner Mayor VERIFICATION I, the undersigned, say: I am the Mayor of the City of Hermosa Beach the declarant of the foregoing notice of completion; I have read said notice of completion and know the contents thereof; the same is true of my own knowledge. I declare under penalty of perjury that the foregoing is true and correct. Executed on ,20 ,at Hermosa Beach,California (Date of signature.) Mayor of Hermosa Beach H:\B95\PWFILES\FORMS\Notice of Completion - master.doc Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0074 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 RESOLUTION AUTHORIZING SUBMITTAL OF APPLICATION FOR CALRECYCLE PAYMENT PROGRAMS AND RELATED AUTHORIZATIONS (Environmental Analyst Kristy Morris) Recommended Action: Staff recommend City Council adopt the resolution authorizing submittal of application for CalRecycle payment programs and related authorizations. Background: Each year the City of Hermosa Beach applies for and receives a grant (City/County Payment Program) from the California Department of Resources Recycling and Recovery (CalRecycle) to provide opportunities for beverage container recycling, used oil and used oil filter collection/recycling programs, and other waste reduction programs. The goal of these program is to 1) reach and maintain an 80 percent recycling rate for all California Refund Value (CRV) beverage containers-- aluminum, glass, plastic and bi-metal; and 2) develop and promote alternatives to the illegal disposal of used oil by establishing a statewide network of collection opportunities and undertaking outreach efforts to inform and motivate the public to recycle used oil. Projects implemented by cities and counties will assist in reaching and maintaining these goals. The City typically receives $10,000 annually and the City uses these funds to contract with John L. Hunter and Associates, Inc. to administer the grants and perform education and outreach activities. Analysis: CalRecycle is required to establish procedures governing the administration of the payment programs. CalRecycle’s procedures for administering payment programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment program. Staff are requesting City Council adopt a resolution (Attachment 1) so that the City of Hermosa Beach is authorized to submit an application to CalRecycle for any and all payment programs offered; and that the City Manager, or his/her designee, is hereby authorized as Signature Authority Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0074 to execute all documents necessary to implement and secure payment; and that this authorization is effective until rescinded by the Signature Authority or this Governing Body. Fiscal Implications: None. Matching funds are not required for these programs. Attachments: 1.Resolution Respectfully Submitted by: Kristy Morris, Environmental Analyst Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ RESOLUTION AUTHORIZING SUBMITTAL OF APPLICATION FOR PAYMENT PROGRAMS AND RELATED AUTHORIZATIONS WHEREAS, pursuant to Public Resources Code section 48000 et seq. the Department of Resources Recycling and Recovery (CalRecycle) has established various payment programs to make payments to qualifying jurisdictions; and WHEREAS, in furtherance of this authority CalRecycle is required to establish procedures governing the administration of the payment programs; and WHEREAS, CalRecycle’s procedures for administering payment programs require, among other things, an applicant’s governing body to declare by resolution certain authorizations related to the administration of the payment program. NOW, THEREFORE, BE IT RESOLVED that the City of Hermosa Beach is authorized to submit an application to CalRecycle for any and all payment programs offered; and BE IT FURTHER RESOLVED that the City Manager, or his/her designee, is hereby authorized as Signature Authority to execute all documents necessary to implement and secure payment; and BE IT FURTHER RESOLVED that this authorization is effective until rescinded by the Signature Authority or this Governing Body. Date Adopted ______________ ATTEST/CERTIFIED ____________________ (name(s)) Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0075 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 ACCEPTANCE OF DONATIONS (Finance Director Viki Copeland) Recommended Action: It is recommended that the City Council accept the donations received by the City from December 1, 2015 to January 7, 2016 from the following donors, to be used for South Park CIP 11-537 and others as noted. DONOR AMOUNT DONOR AMOUNT Kayoko Okada 50.00 Stacey Armato 250.00 Dency Nelson 250.00 Alice Villalobos 250.00 Steven Zaw 250.00 Taiisa Boughton 250.00 Claudia Berman 250.00 Kenneth Sarno 250.00 Carolyn Petty 250.00 Joseph Looney 250.00 Jeremy Johnston 250.00 William Alley 1,000.00 Kinecta Federal Credit Union 2,500.00 Mom’s Club of Hermosa Beach 1,500.00 Total South Park Donations $7,550.00 OTHER DONATIONS DONOR AMOUNT PURPOSE Firefighters Charitable Foundation 300.00 As needed Woman’s Club of Hermosa Beach 500.00 As needed by the Police Department Total Other Donations $800.00 Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0075 Respectfully Submitted by: Viki Copeland Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0084 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 APPROVAL OF AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT WITH RAIMI+ASSOCIATES TO PREPARE AN INTEGRATED GENERAL PLAN UPDATE AND COASTAL LAND USE PLAN AND ENVIRONMENTAL IMPACT REPORT BY AMENDING THE SCOPE OF WORK AND COST BY UP TO $41,902 TO PROVIDE ADDITIONAL PUBLIC OUTREACH AND PROJECT MANAGEMENT SUPPORT (Community Development Director Ken Robertson) Recommended Action: Approve an amendment to the Professional Services Agreement with Raimi + Associates to prepare a General Plan Update integrating the Coastal Land Use Plan and an Environmental Impact Report by amending the Scope of Work and Cost, and approving an appropriation of $41,902. Background: In May 2012 the City was awarded a Strategic Growth Council Sustainable Communities Planning Grant in the amount of $410,400 to prepare a ‘Comprehensive Blueprint for Sustainability and a Low Carbon Future.’ On May 28, 2013 the Council approved a Professional Services Agreement with Raimi + Associates to prepare a General Plan Update integrating the Coastal Land Use Plan and an Environmental Impact Report in the amount of $843,053, allowing a 15% contingency ( <http://hermosabeach.granicus.com/MetaViewer.php?view_id=6&clip_id=2419&meta_id=124128>). On October 7, 2103 and August 14, 2104 the City Manager approved amendments to provide granting writing assistance in the amount of $6,000 for a Local Coastal Assistance Grant and to perform the scope of work for said Grant subsequently awarded the City in the amount of $100,000. On April 28, 2015, the City Council approved a contract amendment for use of consultant services to provide project management support necessary to maintain momentum and adhere to Grant schedules. This involved staff from Raimi + Associates in the City offices one or two days per week to manage workload, over a 20- to 28-week period for a maximum of $68,000. Analysis: The Council has recently expressed preference for more than the standard amount of public outreach with regard to key projects, and has identified PLAN Hermosa (General Plan Update, Coastal Land Use Plan and associated EIR) as one of the most important projects the community will consider. Therefore, additional outreach efforts are being added into the scope of work, specifically walking Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0084 tours for the public, which carries an additional cost of $12,360. To maintain delivery of good customer service in managing several complex development projects involving EIRs and addressing the daily planning-related needs of the citizenry, project management support is needed to help accomplish these General Plan-related tasks as well as to maintain momentum and adhere to the grant schedules. Using the consultant to provide this support will be most efficient. This will involve staff from Raimi + Associates in the City offices eight hours per week to manage workload, over a 31-week period for a maximum of $28,520. Therefore, the scope of work and cost are proposed to be amended. Fiscal Impact: The proposed increased cost not to exceed $41,902 (including 2.5% management fee of $1,022)to provide additional public outreach and augment staff resources will be allocated from salary savings. Attachments: 1. Amendment to Professional Services Agreement and Exhibit A 2. April 28, 2015 Contract Amendment - Staff Report and Attachments Respectfully Submitted by: Kim Chafin, Senior Planner Concur: Ken Robertson, Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0073 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 PROJECT STATUS REPORT AS OF DECEMBER 31, 2015 (Public Works Director Andrew Brozyna) Recommended Action: To receive and file the Project Status Report as of December 31, 2015. Attachments: Project Status Report as of December 31, 2015 Respectfully Submitted by: Andrew Brozyna, Public Works Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments Street and Highway Improvements Major CIP 15-129 Street Improvements - Various Locations _ Grind and Overlay 09/01/15 03/20/16 $1,391,628.00 Lucho Rodriguez/Brian Elkins Paving of Valley drive from Pier Ave. to Gould Ave. complete. Description: Pavement rehabilitation of streets at various locations per the Pavement Management Program Report. Design Phase 09/01/15 09/28/15 Construction Bid and Award Phase 10/15/15 10/29/15 Construction Phase 12/18/15 03/20/16 CIP 11-141 Gould Avenue Street Improvements 03/30/15 07/30/15 $65,850.00 Lucho Rodriguez Description: Pavement and Sidewalk Rehabilitation in Complete Street format of Gould Avenue/27th Street between Sepulveda Avenue and Manhattan Avenue. Estimated project costs are $1.4 million. This project will be re-visited at budget review. Conceptual Plan 03/30/15 07/30/15 Top CIP 12-143 PCH/Aviation Mobility Improvements 11/01/14 04/01/21 $1,204,715.00 Andrew Brozyna Description: Improvements to PCH and Aviation Blvd to turn them into Complete Streets. Improvement will include gateway signs, medians and sidewalk, street and pedestrian lighting, bus shelters and street furnishings. Estimated project costs are $45 million. Pre-Design Phase 11/01/14 09/01/17 PSR 11/01/14 01/01/15 01/01/15 PAED 03/01/16 09/01/16 Design Phase TBD TBD Complete PSR and 60% Design - Phase I TBD TBD Complete 90% Plans - Phase I TBD TBD Begin Construction - Phase I TBD TBD Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments CIP 12-160 PCH Traffic Improvements 06/16/14 09/15/16 $242,381.00 Homayoun Behboodi Description: Improve operational mobility on PCH (State Route 1) between Anita Street and Artesia Blvd., includes new striping, median curb extensions and revised signal timing. Design Phase (estimated completion date)06/16/14 10/30/15 $88,000.00 Permit Phase 09/29/14 01/11/16 Caltrans is reviewing. Bid Phase 01/11/16 02/25/16 Council Award Date (tentative)02/25/16 03/22/16 Tentative Construction Phase 04/15/16 09/15/16 $216,000.00 Major CIP 14-163 Protective Bollards Along the Strand 01/21/15 03/31/16 $25,000.00 Andrew Brozyna/Joel Ortiz Description: Install bollards at openings to the Strand to prevent errant vehicles from entering. Presentation of delineators to PW Commission 01/21/15 01/21/15 Presentation of delineators to PW Commission 03/18/15 03/18/15 Presentation to City Council 04/14/15 04/28/15 Presentation to Public Works Commission 05/20/15 05/20/15 Presentation to Public Works Commission 09/16/15 09/16/15 Final Presentation to the Public Works Commission 11/18/15 11/18/15 Council Presentation 02/09/16 02/09/16 Construction Phase 02/28/16 03/31/16 Major CIP 14-168 Sharrows 05/20/15 02/15/16 $20,000.00 Andrew Brozyna Description: Installation of sharrows, associated traffic furnishings on Monterey Blvd. and Longfellow Ave. Council Update and Approval 10/13/15 10/13/15 City Council approved bike friendly improvements. Construction 12/07/15 02/16/16 Top CIP 14-173 8th Street Study 12/01/14 05/01/17 $341,931.00 Andrew Brozyna/Homayoun Behboodi Description: Improvements to provide "safe sidewalks, ADA curb access ramps on both sides of 8th Street for residents, improve crosswalks and improve public use. Preliminary Engineering/Design Alternatives 12/01/14 09/04/15 Council Presentation 10/13/15 10/27/15 Design kick-off on 11/17/15 Design Phase 11/17/15 04/01/16 Final Council Update and Approval (Before Bid)04/25/16 05/10/16 Bid and Award construction Phase 06/01/16 09/13/16 Construction Phase and Approval 10/01/16 05/01/17 Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments Sewer Improvements CIP 13-401 Sewer Improvements - Various Locations 01/13/14 01/26/16 $269,660.00 Homayoun Behboodi Description: Engineering and Construction of sewer work required to be performed in association with and in advance of streets designated for rehabilitation for FY 13-14. Design Phase 01/13/14 03/03/14 Bid and Award Phase 03/04/14 05/26/14 Construction Phase 05/27/14 10/17/14 $339,981.00 Punch List Items 10/20/14 11/07/14 Additional Work - Herondo Street Reclaimed Water Line Award 12/01/14 12/09/14 Construction for Additional Water Line 03/02/15 05/29/15 $128,828.00 Completed/ closing stage, reviewing billing tickets and invoices Notice of Completion 01/12/16 01/26/16 CIP 14-402 Sewer Improvements - Various Locations 11/17/14 12/08/15 12/08/2015 $129,511.00 Andrew Brozyna Notice of Completion was accepted by City Council on December 8, 2015. Description: Engineering and Construction of sewer work required to be performed in association with and in advance of streets designated for rehabilitation for FY 14-15. Design Phase 11/17/14 02/19/15 Bid & Award Phase 02/23/15 03/24/15 Construction Phase 05/18/15 08/15/15 Project Closeout 08/15/15 12/08/15 CIP 15-403 Sewer Improvements - Various Locations 01/04/16 12/15/16 $5,514,096.00 Lucho Rodriguez Description: Engineering and Construction of sewer work required to be performed in association with and in advance of streets designated for rehabilitation for FY 15-16. Design Phase 01/04/16 06/30/16 Preparing Request for Proposal for design services. Bid & Award Phase 07/04/16 09/06/16 Construction Phase 09/12/16 12/15/16 Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments Park Improvements Major CIP 14-503 Lawn Bowling Green Complex Lighting 08/13/15 04/20/16 $60,000.00 Joel Ortiz/Ells Freeman Description: Installation of eight light poles and fixtures at the Lawn Bowling Green Complex. City of Hermosa Beach PW Maintenance will perform all necessary installations for the lighting system. Design and Quote Phase 08/27/15 12/30/15 Construction Phase 02/20/16 04/20/16 Major CIP 11-537 South Park Playground Improvement PHASE I 11/12/13 01/21/16 $859,196.00 Lucho Rodriguez Description: Demolition of existing skate park and construction of a natural playground for 2-5 year olds and a 6-12 year old play area. Construction 99% complete. Completion Punch list items being completed. Ribbon Cutting is scheduled for 1/23/16. Design Phase 11/12/13 09/26/14 Bid Phase 01/08/15 02/18/15 Award 03/10/15 03/10/15 Construction Phase 04/06/15 01/21/16 CIP 13-538 Citywide Park Master Plan 07/04/15 10/26/16 $143,853.00 Homayoun Behboodi Description: Update the City's 1990 Park Master Plan. RFP Phase 07/04/15 02/25/16 RFP in progress Consultant selection and contract award 02/25/2016 04/26/2016 Park Master Plan update completion 04/26/2016 10/26/2016 Major CIP 14-539 Valley Park Playground Surface Renovation 11/03/14 11/19/15 $25,265.00 Joel Ortiz Description: Resurface existing poured rubber playground surface at Valley Park protecting the surface from UV Rays, cracks and granulation. Work is complete. Preliminary Phase 11/03/14 10/01/15 Award 10/01/15 11/03/15 Construction Phase 11/15/15 11/19/15 Major CIP 14-541 Clark Field Energy Efficient Electrical Upgrades - Phase II 01/19/15 12/31/15 $214,000.00 Lucho Rodriguez In Progress. To be completed March 2016 Description: Upgrade the existing poles and field lighting to increase efficiency. Construction Phase 02/23/15 03/31/16 Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments Public Building and Ground Improvements Major CIP 13-656 Citywide Energy Efficiency Upgrades - Phase I 04/10/14 03/28/16 $723,907.80 Lucho Rodriguez Description: Conduct energy audits for all City facilities and assess areas where the City can reduce electricity and natural gas and increase efficiency of these facilities. Phase I: Consists of upgrading the lighting systems at multiple sites, including: Building Interior, Building Exterior, City-owned Street Lights and Park Lights. Construction in progress 80% completed. Items pending due to manufacturing backlog and Edison's fixture approval for fixtures to qualify for SCE reimbursement. Phase I: Design Phase & SCE Application Process 04/10/14 09/30/14 Phase I: Bid and Award Phase 09/11/14 10/14/14 Phase I: Construction Phase 02/23/15 03/28/16 Top CIP 12-609 Downtown Strategic Plan Implementation 07/15/15 06/30/17 $258,207 Homayoun Behboodi Description: Downtown Core revitalization Strategy (Hermosa Ave Streetscape Design, Pier Plaza Conceptual Design Project). On March 10, 2015 the removal of the granite bollards and relocation of the Jazz plaques was incorporated into this project. Weather permitting, the removal of the granite bollards will begin on January 25th and conclude February 15, 2016. Completion of RFP and awarding contract for Hermosa Avenue Streetscape Design includind Traffic Study and Conceptual Design for Pier Plaza. 07/15/2015 04/28/2016 Reconnaissance and Design 04/28/2016 09/30/2016 Bid & Award Phase - Hermosa Avenue 10/01/2016 12/31/2016 Construction - Hermosa Avenue 01/01/2017 06/30/2017 CIP 13-606 Fire Station Renovation and Upgrades 12/01/15 06/15/16 $10,517.00 Ells Freeman/FD Project on hold until further direction from City Council. Description: Upgrade or repair kitchen cabinets, exterior sliding door and apparatus bay door. Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments CIP 14-614 Police Facilities Improvements Description: The project involves creating additional secured storage for property and evidence, consolidation of range and armory equipment, installation of new updated locks on secured doors in the police department, and storage on PD ramp. 06/04/15 06/30/16 $107,972.00 Ells Freeman / PD In-progress: wash down sink installation. Police lock improvements will be completed in FY 15/16. Construction 06/04/15 06/30/16 Major CIP 15-615 Corporate Yard Facility Description: This overall project which spreads over 5 year period, consists of the construction of a new Corporate Yard Facility to include approximately 50,000 SF of new buildings comprised of Administration, Sewer, Storage, Shops, Fleet Maintenance, and Employee Services. Site improvements will include new material bins, surface parking, and a fueling island. The new facility may potentially be located offsite from the existing yard site. The phase of work budged for FY 2015-16 will include Design of the new Yard and to begin addressing soil contamination (removal or containment). 10/15/15 12/15/16 $50,000.00 Ells Freeman Project includes Toxic Concern Mitigation. Review existing plans of City Yard 10/15/15 05/01/16 Hire consultant to review and address environmental conditions 05/01/16 08/01/16 Complete Assessment Report 08/01/16 12/15/16 Major CIP 14-632 Fire Department Tower Demolition 12/01/14 04/15/16 $510,580.00 Andrew Brozyna/Brian Elkins Description: Demolition and removal of the Fire Dept. tower and seismic upgrades to the 2nd floor addition. Complete Historic Review and Alternatives 04/24/12 08/24/15 Design 12/01/14 09/15/15 Finalize Structural Analysis 09/16/15 10/01/15 Council Award Date Construction (tentative)10/27/15 10/27/15 Relocate Police and Fire Staff 10/27/15 12/15/15 Construction 01/11/16 04/01/16 Move Staff Back to Police/Fire Building 04/01/16 04/15/16 CIP 15-634 Municipal Solar Facility Plan and Installations 12/01/2015 06/30/16 $50,000.00 Kristy Morris Description: The project is soliciting proposals from solar energy service providers to design, install, finance, own, operate and maintain one or more solar photovoltaic systems at certain municipal facilities under a power purchase agreement or solar lease agreement. The City anticipates purchasing from the provider all of the energy output generated by the systems. Phase 1: RFP process for municipal solar program and financing option; select consultant: FY 15/16; Phase 2: Engineering, permitting, financing and installation of solar projects: FY 15/16 RFP to City Council for Approval 12/15/2015 01/12/2016 Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments CIP 13-649 Community Center General Improvements - Phase I and Clark Field Electrical CIP 11-602 09/22/13 12/08/15 12/08/2015 $229,529.00 Andrew Brozyna Project completed; Notice of Completion was accepted by City Council on December 8, 2014 Description: On-going electrical upgrades and repairs to existing electrical systems in the Community Center and Clark Field electrical upgrades Design Phase 09/22/13 06/11/15 Bid & Award Phase 06/12/14 07/30/14 Council Award Date 08/26/14 08/26/15 Construction Phase 11/01/14 09/22/15 Project Closeout 11/01/14 12/08/15 CIP 13-655 City Facilities ADA Improvements 11/01/14 01/29/16 $146,159.00 Lucho Rodriguez Description: Installation of self-opening doors at the Civic Center and Clark building to comply with ADA guideline. Project 99% complete. Punch list items to be completed. Design Phase 11/01/14 03/15/15 Bid and Award Phase 07/16/15 08/16/16 Re-Bid and Award Phase 08/20/15 09/22/15 Bid 3rd time 09/03/15 09/17/15 Council Award 10/13/15 10/13/15 Construction Phase 11/15/15 01/29/16 Major CIP 10-661 Surfing Memorial Statue 11/10/14 11/14/15 $275,208.00 Andrew Brozyna Project completed and the notice of completion to be presented to City Council on 1/26/16. Description: Installation of a surf legends memorial bronze statue in front of the Community Center. Committee Review & Commitment to Design 11/05/14 08/28/15 Design 11/10/14 03/12/15 Council Award PSA & Trust agreement 11/05/14 11/05/14 Bid & Award Construction 04/06/15 04/23/15 Council Construction Award date 05/12/15 05/12/15 Construction Phase 06/08/15 10/30/15 Ribbon Cutting/Complete 11/14/15 11/14/15 Top CIP 13-664 Comprehensive City Facilities Master Plan 06/17/15 11/30/15 $100,000.00 Andrew Brozyna Description: Assess the condition of city facilities, Seismic evaluation, asbestos/lead survey, ADA compliance/transition plan, space needs study and equipment conditions/upgrades. Conduct review and evaluation of facilities and prepare reports 06/17/15 09/15/15 Project study substantially completed. Project Close-Out 10/05/15 11/30/15 CIP 15-650 Community Center General Improvements - Phase III 11/01/15 05/15/16 $50,000.00 Joel Ortiz/Ells Freeman Description: On-going improvements to the Community Center including, repairs to windows, doors and minor architectural. Preliminary Phase 11/01/15 02/20/15 Ongoing - Determining full scope of work Award 02/23/16 02/23/16 Construction 03/15/16 05/15/16 Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments CIP 15-657 City Right of Way ADA Improvements 09/01/15 03/20/16 238,000.00$ Joel Ortiz Description: The City Facilities ADA Improvements consists of removal and replacement non-compliant street curb ramps or sidewalk where no curb ramps exist and constructing new ramps to be in compliance with the Americans with Disabilities Act (ADA). The Citywide Right of Way ADA Inventory Study will be included in the CIP13-664 City Facility Condition Assessment and Asbestos Report. Various City Right of Way ADA Improvements have been and will be implemented as part of CIP 15-129 on the City Curbs and Curb Ramps that abut the grind and overlay project. Design 09/01/15 09/28/15 Bid & Award 10/15/15 10/29/15 Construction 12/21/15 03/20/16 CIP 15-660 Municipal Pier Structural Repairs - Phase III 01/11/16 06/15/16 343,393.00$ Joel Ortiz Phase I was completed in May 2013. Phase II was completed in May 2015. Phase III will involve the replacement of existing conduit, junction boxes, connections and wiring so that the lights can be functional. The project will also eliminate the service box towards the end of the pier and create a new service connection point for the foghorn at the end of the pier. Scoping and design of the project for development of the RFP is ongoing. Funds remaining from FY 14/15 will be combined with this project. RFP Process 01/11/16 03/31/16 Design/Permitting Phase 04/01/16 04/14/17 Bid and Award 04/14/17 07/14/17 Construction 07/14/17 01/28/18 Major CIP 15-667 Community Center, Plaza, and Park Improvements 11/02/15 06/30/16 69,688.00$ Ells Freeman Description: Relocation of Jazz and Surfer's Walk of Fame plaques and creation of a cultural monument - $15K; Modification of existing fencing and installation of additional fencing at the Community Center to prevent homeless encampment around the building - $12,459; Replacement of the marquee for the Community Theatre. The existing marquee name "Hermosa Beach Playhouse" would be changed to the official name of the Theatre - $19,348; Replacement of wood floors with vinyl tiles in Room 7, which hosts the After School and After Camp Programs - $7,976; Replacement of the wood floor with vinyl tiles in Room 12, which currently acts as the Community Theatre's Dressing Room - $5,789; Replace two water fountains, one at Sea View Park and one at Fort Lots-O-Fun Park - $4,620; Replace the water fountain at Jarvis Memorial Park with bottle filler type water fountain - $4,496 Water fountains have been received and scheduling of installation in progress. Theater dressing room stations have been recieved and will be scheduled for installation. Wood floors and vinyl tiles are on order. Project Status Report Priority Project Name Start Date Estimated End Date Actual Completion Date Current Project Budget Project Manager Comments Non-CIP Projects EV Charging Stations - Establish Parking and Fees 04/01/14 12/08/15 12/08/2015 Kristy Morris City Council approved on 12/8/2015 Mini-Bike Corrals/Bike Racks 03/01/15 02/28/16 20,000.00$ Kristy Morris/Ells Freeman Mini-Corrals: Bike racks have been purchased. City Council approved the purchase of solar bollards for this project on 12/8/15 and the bollards have been purchased. Bike Racks: Two bike racks for electric bikes have been installed at City Hall. Several bike racks have been installed along the Strand wall and at City Hall. Currently ordering planters. Sea Level Rise Grant 07/01/14 03/31/16 50,000.00$ Kristy Morris Project extended. Pavement Management Program - FY 15/16 01/15/16 08/15/16 Lucho Rodriguez Preparing RFP Replace Ceiling Tiles - Police and Fire Departments 11/15/15 02/15/16 7,429.00$ Ells Freeman On-hold pending further direction from City Council Civic Center Upkeep On-going On-Going 275,485.00$ Ells Freeman 1st Floor Conference Room painting completed. Major Sewer Hydrojet Contract 08/01/15 03/01/16 126,885.00$ Ells Freeman Videotaping of lines to be completed by March 2016 Major String Lights on Pier Plaza 11/04/15 02/28/15 7,000.00$ Ells Freeman Lights are on order. Major Stormwater Management Program and Funding Mechanism On-going On-Going 65,000.00$ Andrew Brozyna/Homayoun Behboodi/Kristy Morris CNG Fueling Options Report 10/01/15 02/09/16 -$ Andrew Brozyna/Ells Freeman/Kristy Morris PW met with the City of Redondo Beach regarding the sharing of CNG facilities and the City. Due to the aging condition of the existing facilities sharing is not possible. Vehicle Replacement: Update Report 07/01/15 02/09/16 -$ Andrew Brozyna/Ells Freeman/Kristy Morris Major Parking Counting System - Signage 01/01/15 11/30/15 11,020.00$ Joel Ortiz Work is completed, Manuals and Warranties Reviewed, NOC to be filed. Document Scanning and Imaging 07/15/15 On-Going 17,216.00$ Homayoun Behboodi/Sonali Tambe Condition Assessment of 10 Sewer Lines 12/15/15 02/28/16 5,000.00$ Ells Freeman In-progress. Street Striping 01/04/16 02/28/15 15,000.00$ Ells Freeman City Council Chambers Audio/Visual Upgrade 07/01/15 05/12/16 163,780.00$ Homayoun Behboodi Includes Upgrading AV System for Council Chamber Preparation of RFP 07/01/15 01/28/15 Consultant selection and award 01/21/16 03/22/16 Installation 04/22/16 06/12/16 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0081 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 ORDINANCE NO. 16-1359 - “AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING SECTION 10.32.340 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING PARKING OF OVERSIZED VEHICLES” (City Clerk Elaine Doerfling) Recommended Action: It is recommended that the City Council waive full reading and adopt by title Ordinance No. 16-1359. Background: At its meeting of December 8, 2015, the City Council introduced the ordinance and directed staff to include (when the ordinance was brought back for second reading and adoption) a red-lined version clarifying all of the changes to the existing law. At its meeting of January 12, 2016, the City Council reviewed all red-lined changes, including an additional staff-recommended revision to exclude, from the oversized-vehicle definition, pickup trucks and sport utility vehicles less than 25 feet in length and 82 inches in height, a standard with neighboring cities. By a unanimous vote, the City Council waived full reading and re-introduced the ordinance presented with the following amendment under Section 1, subsection D.1.c.iii, adding “residential” as the first word of the sentence, to read “Residential Rental or Lease Agreement….” The ordinance, as unanimously introduced at the January 12 meeting, is presented this evening for waiver of full reading and adoption. Attachments: 1. Ordinance No. 16-1359 Submitted by: Elaine Doerfling, City Clerk Noted: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Page 1 of 7 16-1359 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 ORDINANCE NO. 16-1359 AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING SECTION 10.32.340 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING PARKING OF OVERSIZED VEHICLES THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Section 10.32.340 of the Hermosa Beach Municipal Code is amended to read as follows: A.For purposes of this Section, "Oversized Vehicle" shall mean any vehicle, as defined by Section 670 of the California Vehicle Code, or combination of vehicles, which exceeds twenty (20) feet in length or seven (7) feet in width, exclusive of projecting lights or devices allowed by Sections 35109 or 35110 of the California Vehicle Code, as may be amended. Oversized Vehicle does not include pickup trucks or sport utility vehicles, which are less than twenty-five (25) feet in length and eighty-two (82) inches in height. B.Except as provided in this Section, no person shall park or leave standing any Oversized Vehicle upon any public street or highway or in a public parking lot in the City. C.The prohibitions contained in this Section shall not apply to any of the following: 1.Oversized Vehicles for which an Oversized Vehicle Parking Permit has been issued in accordance with this Section; 2.Oversized Vehicles parked or left standing as a result of a mechanical breakdown so as to allow the performance of emergency repairs on the vehicle for a period not to exceed seventy-two (72) hours; 3.Commercial vehicles making pickups or delivery of goods, wares or merchandise, or while providing services to a residence, including, but not limited to, yard maintenance, pool care and maintenance, repair and construction services; 4.Tow trucks and similar vehicles that are in the course of providing services; 5.Public or utility vehicles that are in the course of providing services; Page 2 of 7 16-1359 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 6.Any public emergency vehicle; and 7.The parking of any Oversized Vehicle during the pendency of any state of emergency declared to exist within the City of Hermosa Beach. D.Registration of Oversized Vehicles 1.Each person registering an Oversized Vehicle with the City must file with the Finance Department a completed application containing the following: a.The name, address, and phone number of the registered owner of the designated Oversized Vehicle; b.The name, address, and phone number of the applicant for the registration; c.Proof of residency. Acceptable proof of residency must be current and must include the following: i.California Driver’s License or California Identification Card and one of the following: ii.Property Tax Bill or Public Utility Bill, showing the service address; iii.Residential Rental or Lease Agreement signed within the last thirty (30) days; d.Current registration from the California Department of Motor Vehicles, or equivalent agency in another state, for the Oversized Vehicle; e.The license number, make, and model of the designated Oversized Vehicle; f.Additional information the Finance Department may require; and g.The applicant’s signature under penalty of perjury. 2.The City will issue Oversized Vehicle Registration Stickers to persons who meet the requirements listed above and pay a fee that will be set by resolution of the City Council. Oversized Vehicle Registration Stickers must be displayed on the street side of the bumper of an Oversized Vehicle so it is clearly visible from the street. E.Oversized Vehicle Parking Permits Page 3 of 7 16-1359 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 1.The purpose of authorizing the issuance of Oversized Vehicle Parking Permits is to give owners of Oversized Vehicles the opportunity, for a limited time, to park the Oversized Vehicle on a public street or highway directly in front of, on the side of, or as close as possible to their own residence, and to allow an out-of-town visitor who owns an Oversized Vehicle to park on a public street or highway directly in front of, on the side of, or as close to the residence which the out-of-town visitor is visiting for a limited time period. 2.Oversized Vehicle Parking Permits shall be issued by the Community Services Division. The Community Services Manager shall be responsible for establishing policies, administering procedures and disseminating information to the public regarding the distribution of Oversized Vehicle Parking Permits at City Hall. 3.Permits may be issued only to City of Hermosa Beach residents, and only for: (1) an Oversized Vehicle registered to the resident or (2) an Oversized Vehicle registered to an out-of-town guest who will be staying with a resident. F.Issuance of Oversized Vehicle Parking Permits 1.This subsection shall apply to Oversized Vehicles that are registered with the City. 2.The Community Services Manager or designee is authorized to issue Oversized Vehicle Parking Permits, pursuant to the following: a.Each person desiring an Oversized Vehicle Parking Permit shall file with the Community Services Division a completed City Oversized Vehicle Registration Form containing the following: i.The name, address, and phone number of the registered owner of the designated Oversized Vehicle; ii.The name, address, and phone number of the applicant for the permit; iii.Proof of residency. Acceptable proof of residency must be current and must include the following: a.California Driver’s License or California Identification Card and one of the following: b.Property Tax Bill or Public Utility Bill; Page 4 of 7 16-1359 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 c.Rental or Lease Agreement signed within the last thirty (30) days; iv.Proof that the vehicle is currently registered with both the California Department of Motor Vehicles, or equivalent agency in another state, and the City of Hermosa Beach; v.The license number, make, and model of the designated Oversized Vehicle; vi.The dates for which the permit is requested; vii.The dates and duration of any and all Oversized Vehicle Parking permits issued to the applicant within the immediately preceding ninety (90) day period; viii.Additional information the Community Services Division may require; and ix.The applicant’s signature under penalty of perjury. 3.Oversized Vehicle Parking Permits issued and approved by the Community Services Division shall include the license plate number of the designated Oversized Vehicle, the date of issuance, the day of its expiration and a prominent designation that it is a resident or a guest permit. 4.Permits shall be displayed in the lower driver’s side of the windshield or nearest window of the Oversized Vehicle for which it has been issued so that it is clearly visible from the exterior of the vehicle. 5.An Oversized Vehicle Parking Permit shall be valid for a period not to exceed twenty-four (24) hours. An Oversized Vehicle Parking Permit will be valid from 12:00 P.M. one (1) day until 11:59 A.M. the next day. Upon expiration of the permit, the applicant may apply for and be granted additional Oversized Vehicle Parking Permits if the applicant still qualifies under the conditions set forth in this Section. An applicant may request no more than three (3) consecutive Oversized Vehicle Parking Permits (a total of seventy-two (72) hours of parking to load and unload) at one time. a.In no event shall any person, residence and/or designated Oversized Vehicle be issued more than twenty-four (24) Oversized Vehicle Parking Permits Page 5 of 7 16-1359 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 within any ninety (90) day period and no more than ninety-six (96) Oversized Vehicle Parking Permits in any calendar year. b.In no event shall any person, residence and/or designated Oversized Vehicle be issued more than three (3) consecutive Oversized Vehicle Parking Permits at one time for a vehicle registered to a resident’s guest. In no event shall any person, residence and/or designated Oversized Vehicle be issued more than nine (9) Oversized Vehicle Parking Permits in any calendar year for a vehicle registered to a resident’s guest. G.Handicapped Oversized Vehicle Parking Permits. If an applicant for an Oversized Vehicle Parking Permit meets all of the requirements below, the Community Services Division shall issue a Handicapped Oversized Vehicle Parking Permit, which shall authorize parking of the designated Oversized Vehicle for up to one (1) year, so long as the permit holder continues to meet the requirements of this section during the term of the permit. 1.The applicant must be entitled to receive a handicapped placard or license plate pursuant to the provisions of the California Vehicle Code. 2.The applicant provides a statement to the City that the Oversized Vehicle is the only vehicle owned by the applicant and is required to meet the daily transportation needs of the applicant. 3.On the Oversized Vehicle Parking Permit application form, the applicant requests an extended term of parking, not to exceed one (1) year. Handicapped Oversized Vehicle Parking Permits may be renewed on an annual basis. Except as otherwise provided herein, the provisions of this Section shall apply to Oversized Vehicles displaying license plates or placards for disabled persons and disabled veterans. H.Oversized Vehicles parked in the City with a valid permit shall pay any applicable parking meter charges, and any vehicle occupying more than one space shall pay the parking meter charge for all spaces occupied. I.Violations of this Section. 1.Unless otherwise noted, any person who violates any provision in this Section is guilty of an infraction and will be subject to citation. 2.Any vehicle parked in violation of this Section is subject to towing. Page 6 of 7 16-1359 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 3.No person shall display a fraudulent, forged, altered, or counterfeit Oversized Vehicle Parking Permit or permit number with the intent to avoid compliance with this Section. Violation of this subsection is a misdemeanor. 4.No person shall forge, alter, or counterfeit an Oversized Vehicle Parking Permit. Violation of this subsection is a misdemeanor. 5.No person shall assign, transfer or use a permit for any consideration, monetary or otherwise. 6.No person shall misuse a permit or display a stolen permit. Any such misuse or display on a vehicle shall be cause for immediate ticketing and towing in addition to the penalty set forth above. Misused permits shall be confiscated by the impounding authority. 7.No person shall alter, deface, or intentionally conceal an expiration date or otherwise attempt to present false information as true and genuine, on the face of a permit which is displayed in a vehicle parked on a City street. SECTION 2. This ordinance shall be enforceable only after the City has erected signs at every entrance to the City prominently stating that parking of oversized vehicles, as defined in this ordinance, is prohibited upon any public street, highway or parking lot in the City absent issuance of a valid Oversized Vehicle Parking Permit. SECTION 3. CEQA. This project is Categorically Exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061. This section of CEQA states that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. This project qualifies for this exemption because the ordinance amends an existing permit program to monitor and limit parking of oversized vehicles throughout the City. Vehicle Code Section 22507 authorizes cities to restrict parking during all or certain hours of the day and this ordinance adopts additional regulations to better manage and monitor the limited parking supply in the City. Under existing law, oversized vehicles registered to residents and residents’ guests are permitted to park on a public street or highway for a maximum of 72-hours if a permit has been issued. This ordinance shortens the length of permits to 24-hours, requires vehicles to be registered with the City to apply for a parking permit, excludes vehicles that exceed eight feet in height but do not Page 7 of 7 16-1359 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 exceed twenty feet in length or seven feet in width, and clarifies that oversized vehicles displaying a handicapped placard must obtain a permit to park an oversized vehicle which may be for an extended period of time. Due to their size, oversized vehicles take up more than one parking spot at a time and limiting oversized vehicle parking will free up parking spaces, allowing more regular-sized vehicles to park in the City and reducing the amount of time vehicles circle around looking for parking. In compliance with state law, existing signs advising drivers of the parking restrictions will be updated to reflect the amendments set forth in this ordinance. Therefore, the ordinance has no potential for causing a significant effect on the environment. SECTION 4. This ordinance shall become effective and be in full force and effect from and after thirty (30) days of its final passage and adoption. SECTION 5. The City Council designated 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. The City Clerk caused said summary to be published on January 21, 2016 [five (5) days before the adoption of the ordinance] in the Easy Reader, a weekly adjudicated newspaper of general circulation, published and circulated in Hermosa Beach. Prior to the expiration of fifteen (15) days after the date of adoption of the ordinance, the City Clerk shall cause the summary to be re-published in the Easy Reader. SECTION 6. The City Clerk shall certify to the passage of this ordinance, shall enter the same in the book of original Ordinances of said city, and shall make minutes of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted. PASSED, APPROVED and ADOPTED this 26th day of January, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST:APPROVED AS TO FORM: ________________________________________________________________________ City Clerk City Attorney Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0082 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 ORDINANCE NO. 16-1360 - “AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE MUNICIPAL CODE, TITLE 12.16 (ENCROACHMENTS) TO WAIVE COMPLIANCE WITH PARKING STANDARDS FOR SMALL OUTDOOR DINING AREAS IN PIER PLAZA” (City Clerk Elaine Doerfling) Recommended Action: It is recommended that the City Council waive full reading and adopt by title Ordinance No. 16-1360. Background: At the City Council’s regular meeting of January 12, 2016, the subject ordinance was presented at a public hearing for Council consideration and was then introduced by a unanimous vote. Attachments: 1. Ordinance No. 16-1360 Submitted by: Elaine Doerfling, City Clerk Noted: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Page 1 of 6 16-1360 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 ORDINANCE NO. 16-1360 AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE HERMOSA BEACH MUNICIPAL CODE, TITLE 12.16 (ENCROACHMENTS), TO WAIVE COMPLIANCE WITH PARKING STANDARDS FOR SMALL OUTDOOR DINING AREAS IN PIER PLAZA THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES ORDAIN AND ORDER AS FOLLOWS: SECTION 1.Section 12.16.090 of Chapter 12.16 of Title 12 of the Hermosa Beach Municipal Code is amended to read as follows: Section 12.16.090, Commercial outdoor dining. Use of the public right-of-way for commercial outdoor dining may be permitted subject to issuance of an encroachment permit in compliance with this Chapter, and subject to the following conditions: A. Every encroachment permit for commercial outdoor dining shall ensure the following: 1. Provides for and maintains an area of passage for pedestrian traffic; 2. Does not inconvenience pedestrian traffic; 3. Conforms to all applicable health codes and this Code; 4. Applicant is to pay all appropriate fees, including but not limited to rental fees; 5. Applicant is to maintain and keep in force at all times a policy of liability insurance, naming the City as an additional insured in the amount of one million dollars ($1,000,000); and 6. Applicant is to pay restorative costs, if applicable, in an amount to be determined by the Director of Public Works, plus administrative costs. B. Pier Plaza. Encroachment for commercial outdoor dining on Pier Plaza shall comply with Section 12.16.060 and the design and operational standards adopted by the Resolution of the City Council. Deviations from the standards set forth in this section may be allowed pursuant to a conditional use permit granted in compliance with Chapter 17.40. Page 2 of 6 16-1360 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 1. Limited outdoor dining in compliance with this section shall be exempt from compliance with off-street parking standards in Chapter 17.44 if it meets the following standards: a. The encroachment area does not exceed two hundred (200) square feet; b. Use of the encroachment area is limited to the hours of operation of the adjacent food establishment, not to exceed 7:00 a.m. to 10:00 p.m.; and c. Alcoholic beverages are not offered, sold or consumed within the encroachment area. C. Commercial zoning districts, excluding Pier Plaza and Specific Plan Area No. 11 (Upper Pier Avenue). Encroachments for commercial outdoor dining on sidewalks within commercial zoning districts, excluding Pier Plaza and Specific Plan Area No. 11 (Upper Pier Avenue), shall comply with Section 12.16.060 and the following design and operational standards and limitations: 1. The outdoor dining encroachment area shall be managed, operated, and maintained as an integral part of the adjacent food establishment. Food establishments include restaurants, snack shops, food and beverage markets, supermarkets, bakeries, delicatessens, or similar establishments that offer food or beverages, as determined by the Director of Public Works in consultation with the Community Development Department. Food establishment does not include temporary, mobile or freestanding food service providers or vendors. 2. The encroachment area shall be located adjacent to the building, and shall not be located within or separated from the establishment by landscaping, street furniture, parking spaces, drive-aisles, alleys or streets, or other elements. 3.Encroachment areas along any street frontage shall be located at least ten (10) feet from any residential zone. 4. The encroachment area when located on sidewalks shall not exceed two hundred (200) square feet, shall not exceed five (5) feet in depth, and shall not occupy more than thirty (30) percent of the sidewalk width excluding curb. On pedestrian walk streets the encroachment area is not subject to the depth or width limitations but shall not exceed two hundred (200) square feet. Outdoor dining in compliance with this section shall be exempt from compliance with off-street parking standards in Chapter 17.44. Page 3 of 6 16-1360 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 5. Use of the encroachment area shall be limited to the hours of operation of the adjacent food establishment, not to exceed 7:00 a.m. to 10:00 p.m. 6. The encroachment area is limited to sit-down food and beverage consumption for seated customers only. Serving ware used in the encroachment area shall be resistant to shattering or breaking into fragments (no glass, ceramic or similar materials). 7. Alcoholic beverages shall not be offered, sold or consumed within the encroachment area. 8. A clear, continuous pedestrian path not less than five (5) feet in width or more as deemed appropriate by the Director of Public Works for pedestrian circulation outside of the encroachment area shall be maintained at all times. As used herein, pedestrian path means a continuous obstruction-free sidewalk area between the outside boundary of the encroachment area and any obstructions, such as street trees or planters, utility poles, street furniture, newsstands, bus benches, or curbs. 9. The layout of the encroachment area shall not impede ingress or egress, and shall be fully accessible to the physically disabled, as required by the Building Code, Title 24 Disabled Access Standards, any other requirements of law, and the City Fire Marshall. 10. Barriers around the encroachment area shall not be provided unless required by the Director of Public Works for public safety, such as protection from vehicles or in cases of surface or grade changes. Unless otherwise specified, required barriers need not be removed each evening, but shall be capable of being removed. If imbedded into the pavement, barriers must be fixed through the use of recessed sleeves and posts, or by wheels that can be locked into place or weighted in place. Required barriers shall conform to requirements for the sight-impaired and shall be properly maintained. The height of any barrier shall not exceed three (3) feet, six (6) inches. All barriers must be able to withstand inclement outdoor weather, and 100 pounds per lineal foot of horizontal force at the top of the barricade when in their fixed positions. 11. The elevation of the encroachment area shall not be altered (e.g., no platforms or recesses). No modification to the surface of the right-of-way, such as resurfacing, texturing or borings for recessed sleeves, shall be made unless approved by the Director of Public Works. 12. Furnishings shall be limited to sturdy chairs, benches and tables, and umbrellas sheltering tables. Furnishings shall be designed for outdoor use. No portion of an Page 4 of 6 16-1360 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 awning or umbrella shall be less than eight (8) feet above the sidewalk or extend outside the encroachment area. Awnings may extend up to four (4) feet from the building front or cover up to fifty (50) percent of the sidewalk width, whichever is less. A building permit shall be obtained prior to installation of an awning. No other objects, including but not limited to host/hostess podiums, bars or bar-height tables, light stands, signs, menu boards, service items or grills are allowed. Furnishings shall not display prominent logos or advertising. All furnishings shall be maintained in good condition at all times. 13. All furnishings and barriers shall be maintained free of appendages or conditions that pose a hazard to pedestrians or vehicles, and ensure visually impaired pedestrians can detect the objects safely. No appendage shall extend outside the encroachment area. No persons including customers shall place anything within or near the encroachment area that could pose a tripping hazard or interfere with accessibility, such as animals tied to signs or utility poles, bicycles, etc. 14. Approved furnishings and objects shall be removed from the encroachment area daily prior to close of business, but no later than 10:30 p.m., unless such furnishings are required to be bolted to the pavement or are approved to remain by the director of public works. 15. No entertainment, music, audio speakers, televisions or visual media of any type, whether amplified or unamplified, shall be located within the encroachment area. 16. The encroachment area, including surfacing, shall be maintained in a neat and clean manner, free of litter, food scraps, soiled dishes, and graffiti, at all times. The business shall actively monitor the area and promptly remove food service ware, food scraps, litter and other trash. Trash receptacles shall be supplied in an easily accessible location on the subject property. Surfacing in and around the encroachment area shall be cleaned during the business day as needed and at the end of each business day. Cleaning and the use of water for cleaning the encroachment area shall comply with good housekeeping best management practices approved by the Director of Public Works in accordance with Chapters 8.44 and 8.56. Under no circumstances shall debris or runoff be swept, washed, or blown into the sidewalk, gutter, storm drains or street. The Director of Public Works may issue the encroachment permit only after determining that the request complies with the standards and provisions of this section and any other requirements applicable to the use set forth in the Municipal Code. Page 5 of 6 16-1360 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 17. Use of the encroachment area shall not adversely affect the welfare of the nearby residents or commercial establishments. 18. The final location and configuration of the encroachment area shall be subject to approval by the Director of Public Works, after determining that the request complies with the standards and provisions of this section and any other requirements applicable to the use set forth in the Municipal Code. The Director may attach conditions to mitigate public health, safety and convenience impacts unique to the specific location. 19. The encroachment permit shall be valid for one year and may be annually renewed. 20. Deviations from the standards set in this section may be allowed pursuant to a conditional use permit, granted in compliance with Chapter 17.40. 21. Specific Plan Area No. 11 (Upper Pier Avenue). Encroachments for commercial outdoor dining on sidewalks within the boundaries of the Specific Plan Area No. 11 zoning district (Upper Pier Avenue) are prohibited. SECTION 2. Pursuant to the provisions of the California Environmental Quality Act, an Initial Study and Negative Declaration were prepared and noticed for a 30-day period. No comments were received during that time period, and it is therefore determined that no significant impacts on the environment will result from the project. The Negative Declaration prepared for this project reflects the City’s independent judgment and analysis. The City Council finds that there is no substantial evidence that the project would have a significant impact on the environment and hereby adopts the Initial Study and Negative Declaration as adequate and complete and approves the Final Negative Declaration. SECTION 3. This Ordinance shall become effective and be in full force and effect from and after thirty (30) days of its final passage and adoption. SECTION 4.The City Council designated 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. The City Clerk caused said summary to be published on January 21, 2016 [five (5) days before the date of adoption of the Ordinance], in the Easy Reader, a weekly Page 6 of 6 16-1360 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 adjudicated newspaper of general circulation, published and circulated in Hermosa Beach. Prior to the expiration of fifteen (15) days after the date of adoption of the Ordinance, the City Clerk shall cause the summary to be re-published in the Easy Reader. SECTION 5. 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, and shall make minutes of the passage and adoption thereof in the records of the proceedings of the City Council at which the same is passed and adopted. PASSED, APPROVED and ADOPTED this 26th day of January, 2016 by the following vote: AYES: NOES: ABSENT: ABSTAIN: _____________________________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST:APPROVED AS TO FORM: _______________________________________________________________________________________________ City Clerk City Attorney Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0053 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 APPROVAL OF CITY COUNCIL MINUTES (Continued from meeting of January 12, 2016) (City Clerk Elaine Doerfling) Recommended Action: It is recommended that the City Council approve the minutes for the following meetings: ·Adjourned Regular meeting of May 11, 2015 ·Regular meeting of May 12, 2015 Attachments: The two sets of minutes noted above. Submitted by: Elaine Doerfling, City Clerk Noted: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Monday, May 11, 2015 6:00 PM Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Joint City Council and Planning Commission Study Session - 6:00 P.M. Adjourned Regular City to follow Study Session Council Chambers City Council Mayor Peter Tucker Mayor Pro Tem Nanette Barragan Councilmembers Carolyn Petty Hany Fangary Michael DiVirgilio Meeting Minutes - Draft May 11, 2015City Council and Planning Commission Meeting Minutes - Draft JOINT CITY COUNCIL AND PLANNING COMMISSION AGENDA CALL TO ORDER 7:00 p.m. PLEDGE OF ALLEGIANCE George Schmeltzer ROLL CALL Present: Barragan, DiVirgilio, Fangary, Petty, Mayor Tucker Absent: None Also present were Planning Commissioners: Michael Flaherty, Sam Perrotti, Ron Pizer, Peter Hoffman, Kent Allen STUDY SESSION: GENERAL PLAN/COASTAL LAND USE PLAN UPDATE 1.OVERVIEW OF LAND USE AND TRANSPORTATION SCENARIOS (Raimi + Associates) Community Development Director Robertson gave the introduction and said the purpose of tonight's meeting is to receive input and policy direction. Matthew Burris, Raimi + Associates AICP, LEED-AP, and Leeanne Singleton, Raimi +Associates Senior Planner, AICP, LEED-AP, gave a PowerPoint presentation outlining land use and transportation scenarios, and responded to Council/Commission questions. 2.OVERVIEW OF CARBON PLANNING TOOL (Brendle Group) Judy Dorsey, Brendle Group President/P.E., and Shelby Sommer, Brendle Group Planner II, gave a PowerPoint Presentation on the Carbon Reduction Planning Tool, which was demonstrated in Excel, and responded to Council/ Commission questions. (Planning Commissioners Allen and Perrotti left the meeting at 7:41 p.m.) Page 1Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft 3.GENERAL PLAN/COASTAL LAND USE PLAN UPDATE: DISCUSSION AND DIRECTION ON LAND USE AND TRANSPORTATION SCENARIOS (Community Development Director Ken Robertson) Community Development Director Robertson presented the update and responded to Council questions. PUBLIC COMMENT; COMMISSION COMMENTS; COUNCIL DIRECTION Coming forward to address the Council at this time were: Dean Nota Betsy Ryan Andrea Giancoli Bob Jones Discussion among Councilmembers, Commissioners and consultants ensued. Council/Commission comments/suggestions included: Rather than choosing just one scenario, components from each scenario should be considered. Reclaimed water could be used downtown where feasible. East/west bicycle routes are needed. The General Plan will be years in the making. Comments may be sent to generalplan@hermosabch.org. ADJOURNMENT OF STUDY SESSION 8:31 p.m. ADJOURNED REGULAR CITY COUNCIL MEETING AGENDA CALL TO ORDER 8:52 p.m. PLEDGE OF ALLEGIANCE Ray Waters Page 2Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft ROLL CALL Present: Barragan, DiVirgilio, Fangary, Petty, Mayor Tucker Absent: None CLOSED SESSION REPORT – None ANNOUNCEMENTS Councilmember Fangary said he attended a recent meeting of the Redondo Beach City Council regarding the AES Power Plant matter. Action: To end tonight's meeting at 10:30 p.m. Motion Petty, second DiVirgilio. The motion carried 4-1, noting the dissenting vote of Fangary. PUBLIC PARTICIPATION: 1. ORAL AND WRITTEN COMMUNICATIONS: Coming forward to address the Council at this time was: Craig Cadwallader, Surfrider Foundation South Bay Chapter 2. CONSENT CALENDAR – None 3. CONSENT ORDINANCES – None 4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION a) CITY COUNCIL MEETING MINUTES (Continued from meeting of April 28, 2015) (City Clerk Elaine Doerfling) Action: To approve the minutes of the Adjourned Regular meeting of April 28, 2015, with the heading amended to reflect that it was a joint meeting with the Hermosa Beach City School Board. Motion Fangary, second Tucker. The motion carried by a unanimous vote. Page 3Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft b)TENTATIVE FUTURE AGENDA ITEMS (Continued from meeting of April 28, 2015) City Manager Bakaly and City Attorney Jenkins responded to Council questions. Action: To approve the Tentative Future Agenda Items. Motion Fangary, second Barragan. The motion carried by a unanimous vote. c)ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF MARCH 18, 2015. (Continued from April 28, 2015) City Manager Bakaly responded to Council questions. Action: To receive and file the action minutes of the Public Works Commission meeting of March 18, 2015. Motion Fangary, second Tucker. The motion carried by a unanimous vote. d)ADOPTION OF RESOLUTION AMENDING THE OUTDOOR DINING AND DESIGN STANDARDS FOR PIER PLAZA (INCLUDING LORETO PLAZA) (Continued from meeting of April 28, 2015) (Community Development Director Ken Robertson) Action: To adopt Resolution No. 15-6955, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING CITY COUNCIL RESOLUTION 05-6417, “ADOPTING STANDARDS AND PROCEDURES FOR THE DESIGN AND OPERATION OF OUTDOOR DINING AREAS ON PIER PLAZA”, OUTDOOR DINING DESIGN AND OPERATIONAL STANDARDS FOR PIER PLAZA, AS AMENDED BY RESOLUTION 12-6802, AND DETERMINING THE PROJECT IS CATEGORICALLY EXEMPT FROM THE ENVIRONMENTAL QUALITY ACT." Motion Petty, second DiVirgilio. The motion carried 3-2, noting the dissenting votes of Barragan and Tucker. e)AMEND THE PROFESSIONAL SERVICES AGREEMENT WITH BRENDLE GROUP BY ADDING $13,120 TO DEVELOP A TOOL FOR MUNICIPAL CARBON NEUTRALITY PLANNING AND TRACKING (Continued from Meeting of April 14, 2015) (Environmental Analyst Kristy Morris) City Manager Bakaly responded to Council questions. Page 4Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft Action: To amend the Professional Services Agreement, as recommended by staff. Motion Fangary, second Barragan. The motion carried 4-1, noting the dissenting vote of Petty. f)EXTEND CITY FEE WAIVERS, REDUCTIONS AND INCENTIVES FOR PHOTOVOLTAIC SOLAR PROJECTS, SMALL WIND ENERGY SYSTEMS, ENERGY UPGRADE CALIFORNIA AND HERO PROJECTS, AND OTHER INITIATIVES TO ADVANCE SUSTAINABILITY (Continued from meeting of April 28, 2015) (Environmental Analyst Kristy Morris) Coming forward to address Council on this item was: Dency Nelson Action: To approve the staff recommendation to extend the following incentives and report back to the Council in two years: 1) Waive preferential parking permit fees for 100% alternative fuel vehicles (100% electric, fuel cell, CNG vehicles, or other technologies not utilizing fossil fuels). 2) Rebate building permit fees for service upgrades for 100% alternative fuel vehicles (e.g., electric charging, CNG). 3) Rebate 50% of building permit plan check/inspection fees (charging only the outside plan check fees) for improvements that: (A) directly and substantially increasing energy efficiency (such as at least 15% above city codes) for buildings constructed earlier than 2000, (B) incentivize LEED or Build-It-Green Program certification (directly and substantially increase energy efficiency, water conservation and/or waste reduction), or (C) otherwise involve improvements that will make a significant contribution, exceed code requirements, or are early adoption-type behaviors. The Community Development Director shall make determinations. 4) Rebate 50% of building permit plan check/inspection fees for retrofit improvements that qualify for Energy Upgrade California or PACE programs funding, such as HERO, charging only the outside plan check fees if applicable. 5) Waive the Planning and Building permit fees associated with installation of photovoltaic systems, excluding building permit fees to upgrade the structure to accommodate the system. 6) Waive the Planning permit fees associated with installation of small wind energy systems, and rebate the Building permit fees (excluding building permit fees to upgrade the structure to accommodate the system), charging only the contract service, outside agency and outside service fees the City or applicant are required to pay; and 7) Provide priority permit processing for all of the above. Motion Tucker, second Barragan. The motion carried by a unanimous vote. Page 5Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft 5. PUBLIC HEARINGS – None 6. MUNICIPAL MATTERS a)OIL FINANCING UPDATE (Continued from meeting of April 28, 2015) (City Manager Tom Bakaly) City Manager Bakaly presented the staff report and responded to Council questions. Action: To receive and file the update. Motion Petty, second Fangary. The motion carried by a unanimous vote. b) OPTIONS FOR CONTINUED PARTICIPATION IN CALIFORNIA ENERGY COMMISSION CERTIFICATION OF AES REDONDO ENERGY PLANT (Continued from meeting of April 28, 2015) (Community Development Director Ken Robertson) Community Development Robertson presented the staff report and responded to Council questions. City Manager Bakaly also responded to Council questions. Coming forward to address the Council on this item was: Bill Brand, Redondo Beach City Councilmember Dency Nelson Betsy Ryan Action: To direct staff to continue with the City’s intervener status regarding rebuilding the AES Power Plant; to engage with City of Redondo Beach staff in the process; to return to Council with a resolution opposing the rebuilding; and to communicate all related upcoming meetings and events to residents through newsletter e-blasts, etc. Motion Fangary, second Barragan. The motion carried by a unanimous vote. Page 6Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft c)WATER CONSERVATION UPDATE (Continued from meeting of April 28, 2015) (Environmental Analyst Kristy Morris) Environmental Analyst Kristy Morris gave a PowerPoint presentation and responded to Council questions. Coming forward to address the Council on this item were: Bill Brand, Redondo Beach Councilmember Craig Cadwallader, Surfrider Foundation South Bay Chapter Action: To receive and file the update. Motion DiVirgilio, second Barragan. The motion carried by a unanimous vote. 7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER a)PLASTIC BAG BAN UPDATE (Continued from meeting of April 28, 2015) (Environmental Analyst Kristy Morris) Environmental Analyst Morris presented the update and responded to Council questions. City Attorney Jenkins also responded to Council questions. Coming forward to address the Council on this item were: Craig Cadwallader, Surfrider Foundation South Bay Chapter Ray Waters Dency Nelson Action: To direct staff to return at the May 26, 2015 Council meeting with a more comprehensive study of the ban, including feedback from the City of Manhattan Beach. Motion Tucker, second DiVirgilio. The motion carried by a unanimous vote. 8. MISCELLANEOUS ITEMS AND MEETING ATTENDANCE REPORTS –CITY COUNCIL NONE Page 7Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft 9. OTHER MATTERS -CITY COUNCIL Action: To continue items 9a, b, c and d to the May 12, 2015 Council meeting. Motion Tucker, second DiVirgilio. The motion carried by a unanimous vote. a)REQUEST FROM MAYOR TUCKER TO ASK STAFF TO COME BACK WITH A REPORT ON HOW TO PROCEED WITH UPDATING THE CITY STREET SIGNS AS PRESENTED BY GRAPHIC SOLUTIONS TO GIVE HERMOSA BEACH A NEW UPDATED LOOK. (Continued from Meeting of April 14, 2015) This item was continued. b)REQUEST FROM COUNCILMEMBER FANGARY TO EVALUATE AND UPDATE AS NEEDED THE CITY’S MASTER FEE RESOLUTION TO ENSURE APPROPRIATE FEES ARE DESIGNATED FOR SPECIFIC CITY SERVICES. THE CITY CURRENTLY HAS RESOLUTIONS THAT PROVIDE FOR PAYMENT OF PROCESSING FEES AS SET FORTH IN THE CITY’S MASTER FEE RESOLUTION, BUT NO SUCH PROCESSING FEES ARE PROVIDED. (Continued from Meeting of April 14, 2015) This item was continued. c)REQUEST FROM COUNCILMEMBER FANGARY TO EVALUATE AND PROVIDE DIRECTION REGARDING THE CITY’S NOTICE PROCEDURES FOR PUBLIC MEETINGS AND OTHER ACTIVITIES/EVENTS AS NEEDED. EVALUATION AND DIRECTION SHOULD BE PROVIDED REGARDING THE MANNER OF PROVIDING NECESSARY NOTICES, AND PAYMENT RESPONSIBILITY FOR SUCH NOTICES. (Continued from Meeting of April 14, 2015) This item was continued. d)REQUEST FROM COUNCILMEMBER PETTY TO REVISIT OPERATION CLEAN SWEEP, WHICH ELIMINATED SIGNAGE AND DISPLAYS ON Page 8Hermosa Beach Printed on 12/17/2015 May 11, 2015City Council and Planning Commission Meeting Minutes - Draft PIER AVENUE. REQUEST THAT THE COUNCIL DISCUSS MODIFIED STANDARDS THAT PERMIT LIMITED SIGNAGE AND/OR APPROVED DISPLAYS THAT PROMOTE BUSINESSES YET DO NOT IMPEDE PEDESTRIAN TRAFFIC. (Continued from meeting of April 28, 2015) This item was continued. ADJOURNMENT The meeting adjourned at 10:47 p.m., Monday, May 11, 2015, to the Regular meeting of Tuesday, May 12, 2015, which begins with a 6 p.m. Closed Session. ____________________________ ______________________________ City Clerk Deputy City Clerk Page 9Hermosa Beach Printed on 12/17/2015 Tuesday, May 12, 2015 6:00 PM Hermosa Beach City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Council Chambers City Council Mayor Peter Tucker Mayor Pro Tem Nanette Barragan Councilmembers Carolyn Petty Hany Fangary Michael DiVirgilio Meeting Minutes - Draft City Council Closed Session -6pm Regular City Council Meeting - 7pm May 12, 2015City Council Meeting Minutes - Draft 6:00 P.M. - CLOSED SESSION (LOCATION: Closed Session meetings convene in the Council Chambers and move to the Second Floor Conference Room after Public Comment) CALL TO ORDER IN COUNCIL CHAMBERS 6:00 p.m. ROLL CALL Present: Barragan, DiVirgilio, Fangary, Petty, Mayor Tucker Absent: None PUBLIC COMMENT No one came forward to address the Council at this time. RECESS TO CLOSED SESSION IN SECOND FLOOR CONFERENCE ROOM 6:01 p.m. 1.MINUTES: Approval of minutes of Closed Session held on April 28, 2015. 2.CONFERENCE WITH LEGAL COUNSEL: Quarterly Litigation Update The City finds, based on advice from legal counsel, that discussion in open session will prejudice the position of the City in the litigation. Existing Litigation - Government Code Section 54956.9(d)(1) a) Name of Case: Bertucci v. City of Hermosa Beach Los Angeles County Superior Court, Case Number: BC543237 b) Name of Case: Green v. City of Hermosa Beach Los Angeles County Superior Court, Case Number: BC571125 c) Name of Case: Khanlian v. City of Hermosa Beach Los Angeles Central Court, Case Number: BC570706 d) Name of Case: Merrill v. City of Hermosa Beach Los Angeles County Superior Court, Case Number: BC532065 e) Name of Case: Roberts et al v. City of Hermosa Beach Los Angeles County Superior Court, Case Number: BC544495 f) Name of Case: Yrigoyen v. City of Hermosa Beach Los Angeles Central Court, Case Number: BC561167 ADJOURNMENT OF CLOSED SESSION 7:04 p.m. Page 1Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft 7:00 P.M. - REGULAR AGENDA CALL TO ORDER 7:10 p.m. PLEDGE OF ALLEGIANCE Rick Learned ROLL CALL Present: Barragan, DiVirgilio, Fangary, Petty, Mayor Tucker Absent: None CLOSED SESSION REPORT City Attorney Jenkins said no public comment was received before the Council recessed to Closed Session, and no reportable actions were taken on the items of litigation. ANNOUNCEMENTS Councilmember Fangary spoke of attending the Redondo Beach City Council meeting last week regarding the AES Power Plant. He said this evening the Council will discuss whether or not to take over the investigation of the events at the Standing Room on the evening of March 3, which he fully supports. Mayor pro tem Barragan said she attended a South Bay Cities Council of Governments meeting last week which addressed transportation issues. Mayor Tucker noted a Resolution adopted a couple of years ago to end Council meetings at 10:30 p.m. unless there is a vote to proceed past that time. He then asked that tonight's meeting be adjourned in memory of Lois Stirrat. PROCLAMATIONS / PRESENTATIONS a)SOUTH BAY WORKFORCE INVESTMENT BOARD QUARTERLY SUMMARY PRESENTED BY CHRIS CAGLE Chris Cagle, South Bay Workforce Investment Board Business Consultant, presented the quarterly summary, highlighting recent accomplishments and noting that more information could be found at www.southbay1stop.org and www.sbwib.org. Page 2Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft b)RECOGNIZING SPYDER SURFBOARDS FOR THE DONATION OF $4,500 TO THE SURFER’S WALK OF FAME Mayor Tucker presented a Certificate of Recognition to Dennis Jarvis of Spyder Surfboards for its donation. PUBLIC PARTICIPATION: 1. ORAL AND WRITTEN COMMUNICATIONS: Coming forward to address the Council at this time were: Gila Katz Rick Learned Sheryl Main Barbara Ellman – submitted information Marie Rice Allan Mason Betsy Ryan – submitted information Jim Lissner Mike Judd and Ryan Bozsan, Leadership Hermosa – submitted information Sal Longo Phil Friedl Larry Nakamura Robert Walsh a)LETTERS REGARDING HERMOSA BEACH POLICE DEPARTMENT COMPLAINT OF MARCH 3, 2015 City Manager Bakaly provided an update on the issue and responded to Council questions. City Attorney Jenkins also responded to Council questions. No one came forward to address the Council on this item. Action: To receive and file the letters and the City Manager's update. Motion Petty, second DiVirgilio. The motion carried by a unanimous vote. 2. CONSENT CALENDAR: Action: To approve the consent calendar recommendations (a) through (i) with the exception of the following items, which were removed for discussion in item 4, but are shown in order for clarity: 2(a) Barragan; 2(d) Fangary. Motion DiVirgilio, second Petty. The motion carried by a unanimous vote. (At 8:25 p.m., the order of the agenda moved to Municipal Matters.) Page 3Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft a)MEMORANDUM REGARDING CITY COUNCIL MINUTES (City Clerk Elaine Doerfling) (Supplemental letter from Howard Longacre dated May 12, 2015) This item was pulled by Mayor pro tem Barragan for separate discussion later in the meeting. Action: To receive and file. Motion Barragan, second Tucker. The motion carried by a unanimous vote. b)CHECK REGISTERS (Finance Director Viki Copeland) Action: To ratify as presented the check registers dated April 23, April 29 and April 30, 2015. c)TENTATIVE FUTURE AGENDA ITEMS Action: To receive and file the Tentative Future Agenda Items. d)ACTION MINUTES OF THE PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF APRIL 7, 2015 This item was pulled by Councilmember Fangary for separate discussion later in the meeting. Action: To receive and file the action minutes of the Parks, Recreation and Community Resources Advisory Commission meeting of April 7, 2015. Motion Fangary, second DiVirgilio. The motion carried by a unanimous vote. e)ACCEPTANCE OF DONATION (Finance Director Viki Copeland) Action: To accept the donation of $4,500 from Spyder Surfboards to be used for the Surfer’s Walk of Fame (proceeds from “Point Break Live” sales at the Hermosa Beach Community Center). f)APPROVE AGREEMENT W2546 BETWEEN THE CITY OF HERMOSA BEACH AND THE WEST BASIN MUNICIPAL WATER DISTRICT AND AWARD CIP 10-661 SURF LEGENDS MEMORIAL PROJECT CONSTRUCTION CONTRACT TO CONCEPT CONSULTANT, INC. (Public Works Director Andrew Brozyna) Page 4Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft Action: To approve the staff recommendation to: 1) Approve Agreement W2546 between the City of Hermosa Beach and the West Basin Water District Regarding the Ocean Friendly Garden Demonstration Project; 2) Approve an appropriation and estimated revenue of $40,000 to the Grant Fund from the West Basin Water District Ocean-Friendly Garden Demonstration Project funds for the Surf Legend Memorial project account; 3) Award the Construction Contract to Concept Consultant Inc., to provide construction services for CIP 10-661 Surf legends Memorial Project; in the amount of $304,576.55; 4) Authorize the Mayor to execute and the City Clerk to attest the attached Construction Contract subject to approval by the City Attorney; 5) Adopt Resolution No. 15-6956, entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING THE SPECIFICATIONS FOR THE CONSTRUCTION OF CIP 10-661 SURF LEGENDS MEMORIAL PROJECT PURSUANT TO GOVERNMENT CODE SECTION 830.6 AND ESTABLISHING A PROJECT PAYMENT ACCOUNT"; 6) Approve an appropriation and estimated revenue of $6,000 to the Grant Fund from the SoCal Water$mart Turf Removal Program funds for the Surf Legend Memorial project account; 7) Authorize the transfer of $82,279 from the Prospective Expenditure (001-1214-4322) to the Surf Legend Memorial project account (150-8661-4201); and 8) Authorize the Director of Public Works to make changes to the contract within the project budget. g)RECOMMENDATION TO REJECT CLAIM (Assistant to the City Manager Diane Strickfaden) Action: To reject the following claim and refer it to the City's Liability Claims Administrator, as recommended by staff: Claimant:Clair, Ted Date of Loss:November, 13, 2014 Date Filed:April 27, 2015 Allegation:Personal Injury h)ADDITIONAL POLL-WORKER PAY FOR THE SPECIAL MUNICIPAL ELECTION OF MARCH 3, 2015 (City Clerk Elaine Doerfling) Action: To approve, as recommended by the City Clerk, additional poll-worker pay totaling $2,020 ($100 for each of five inspectors and $80 for each of 19 clerks) in recognition of extraordinary service for the City's March 3, 2015 Special Municipal Election. Page 5Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft i)PREPARATION OF ORDINANCE SUMMARY FOR NEWSPAPER PUBLICATION (City Clerk Elaine Doerfling) Action: To approve the recommendation of the City Clerk to direct the City Attorney to prepare a summary of Ordinance No. 15-1351, entitled "AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA, RELATING TO LOW IMPACT DEVELOPMENT AND STORMWATER MANAGEMENT AND POLLUTION CONTROL AND AMENDING THE HERMOSA BEACH MUNICIPAL CODE AND REPEALING CONFLICTING OR REDUNDANT PROVISIONS OF THE GREEN BUILDING STANDARDS." 3. CONSENT ORDINANCES –NONE 4. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION Items 2(a) and (d) 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)RECOMMENDATION FOR BOND COUNSEL AND FINANCIAL ADVISOR TO ASSIST WITH OIL SETTLEMENT AND SEWER UPGRADE FINANCINGS (Finance Director Viki Copeland) (Supplemental letter from Larry Kosmont dated May 11, 2015) Finance Director Copeland presented the staff report and responded to Council questions. City Attorney Jenkins also responded to Council questions. Coming forward to address the Council on this item were: Jim Lissner Alicia Villareal Action: To approve staff recommendation to: 1) Approve the selection of Jones Hall as Bond Counsel for the Oil Settlement financing, Stradling Yocca Carlson & Rauth as Bond Counsel for the Sewer Upgrade financing and NHA Advisors as Financial Advisor for financings related to the Oil Settlement and Sewer Upgrade; and 2) Authorize the City Manager to sign agreements with all firms, consistent with the attached fee schedule. Motion Petty, second Fangary. The motion carried 4-1, noting the dissenting vote of Barragan. Page 6Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft b)INITIAL REPORT REGARDING CITY COUNCIL PROTOCOLS AND PROCEDURES REGARDING AGENDA DESCRIPTIONS AND LOCATION OF COUNCIL MEETINGS (City Attorney Mike Jenkins) City Attorney Jenkins presented the staff report and responded to Council questions. Coming forward to address the Council on this item was: Alice Villareal Action: To receive and file the initial report and direct changes for Council consideration at a future meeting. Motion DiVirgilio, second Fangary. The motion carried by a unanimous vote. c)CITY MANAGER SALARY (Finance Director Viki Copeland) (Supplemental memorandum from Councilmember Fangary) Finance Director Copeland presented the staff report and responded to Council questions. No one came forward to address the Council on this item. Action: To adopt Resolution No. 15-6957, entitled “A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, RATIFYING THE INCREASE IN THE CITY MANAGER’S SALARY TO OFF-SET CONTRIBUTIONS TO THE PUBLIC EMPLOYEES RETIREMENT SYSTEM ON THE SAME BASIS AS OTHER EMPLOYEES.” Motion Fangary, second DiVirgilio. The motion carried by a unanimous vote. 7. MISCELLANEOUS ITEMS AND REPORTS - CITY MANAGER – NONE (At 9:45 p.m., the order of the agenda moved to item 4, items removed from the consent calendar.) 8. MISCELLANEOUS ITEMS AND MEETING ATTENDANCE REPORTS –CITY COUNCIL a)VACANCIES -BOARDS AND COMMISSIONS EMERGENCY PREPAREDNESS ADVISORY COMMISSION THREE TERM EXPIRATIONS ON MAY 31, 2015 UNEXPIRED TERM ENDING MAY 31, 2017 (City Clerk Elaine Doerfling) (Supplemental memorandum from City Clerk Doerfling dated May 12, 2015) Page 7Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft City Clerk Doerfling presented the reports and responded to Council questions, noting there were only two applicants at this time. Proposed Action: To direct the City Clerk to readvertise for additional Emergency Preparedness Advisory Commission (EPAC) applicants. Motion Tucker, second DiVirgilio. The motion was subsequently replaced by the substitute motion below. Substitute Action: To schedule interviews of the two EPAC applicants at 5:30 p.m. on May 26, with possible appointment(s) to follow at the regular meeting; and direct the City Clerk to readvertise for additional applicants to fill the remaining seats. Motion Petty, second Barragan. The motion carried 3-2, noting the dissenting votes of DiVirgilio and Tucker. b)VACANCIES -BOARDS AND COMMISSIONS PARKS, RECREATION AND COMMUNITY RESOURCES ADVISORY COMMISSION TWO TERM EXPIRATIONS ON JUNE 30, 2015 UNEXPIRED TERM ENDING JUNE 20, 2017 (City Clerk Elaine Doerfling) (Supplemental memorandum from City Clerk Doerfling dated May 12, 2015) City Clerk Doerfling presented the reports and responded to Council questions, noting there were seven applicants for three seats. Action: It was the consensus of the Council to schedule interviews for the seven Parks, Recreation & Community Resources Advisory Commission applicants at 5 p.m., June 9, 2015, with appointments to follow at the regular meeting. 9. OTHER MATTERS - CITY COUNCIL a)REQUEST FROM COUNCILMEMBER FANGARY TO PLACE AN AGENDA ITEM ON THE NEXT CITY COUNCIL MEETING, OR TO SCHEDULE A SPECIAL CITY COUNCIL MEETING, TO EVALUATE AND PROVIDE DIRECTION REGARDING: 1) THE CITY’S RESPONSE AND HANDLING OF THE NUMEROUS PUBLIC RECORDS ACTS REQUESTS RELATING TO THE MARCH 3, 2015 INCIDENT; 2) THE INVESTIGATION COMMENCED BY THE CITY MANAGER REGARDING THE MARCH 3, 2015 INCIDENT; AND 3) PERSONNEL COMPLAINT FILED AGAINST THE CITY MANAGER. Councilmember Fangary spoke to his request, garnering support from Mayor pro tem Barragan. Page 8Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft b)REQUEST FROM COUNCILMEMBER FANGARY TO EVALUATE AMENDING THE CITY’S MUNICIPAL CODE TO PROHIBIT COMMERCIAL PROPERTIES FROM PRODUCING VIBRATIONS THAT ARE PERCEPTIBLE WITHOUT INSTRUMENTS BY A REASONABLE PERSON AT THE PROPERTY LINES OF A SITE, SIMILAR TO THE TERMS OF THE MUNICIPAL CODE IN THE CITY OF MANHATTAN BEACH. Councilmember Fangary spoke to his request, garnering support from Mayor pro tem Barragan and Mayor Tucker. c)REQUEST FROM MAYOR TUCKER TO ASK STAFF TO COME BACK WITH A REPORT ON HOW TO PROCEED WITH UPDATING THE CITY STREET SIGNS AS PRESENTED BY GRAPHIC SOLUTIONS TO GIVE HERMOSA BEACH A NEW UPDATED LOOK. (Continued from Meeting of April 14, 2015) Mayor Tucker spoke to his request, garnering support from Councilmembers Petty and Fangary. d)REQUEST FROM COUNCILMEMBER FANGARY TO EVALUATE AND UPDATE AS NEEDED THE CITY’S MASTER FEE RESOLUTION TO ENSURE APPROPRIATE FEES ARE DESIGNATED FOR SPECIFIC CITY SERVICES. THE CITY CURRENTLY HAS RESOLUTIONS THAT PROVIDE FOR PAYMENT OF PROCESSING FEES AS SET FORTH IN THE CITY’S MASTER FEE RESOLUTION, BUT NO SUCH PROCESSING FEES ARE PROVIDED. (Continued from Meeting of April 14, 2015) Councilmember Fangary spoke to his request, garnering support from Mayor Tucker and Councilmembers Petty and DiVirgilio. e)REQUEST FROM COUNCILMEMBER FANGARY TO EVALUATE AND PROVIDE DIRECTION REGARDING THE CITY’S NOTICE PROCEDURES FOR PUBLIC MEETINGS AND OTHER ACTIVITIES/EVENTS AS NEEDED. EVALUATION AND DIRECTION SHOULD BE PROVIDED REGARDING THE MANNER OF PROVIDING NECESSARY NOTICES, AND PAYMENT RESPONSIBILITY FOR SUCH NOTICES. (Continued from Meeting of April 14, 2015) Page 9Hermosa Beach Printed on 12/17/2015 May 12, 2015City Council Meeting Minutes - Draft Councilmember Fangary spoke to his request, garnering support from Mayor pro tem Barragan and Councilmember DiVirgilio. f)REQUEST FROM COUNCILMEMBER PETTY TO REVISIT OPERATION CLEAN SWEEP, WHICH ELIMINATED SIGNAGE AND DISPLAYS ON PIER AVENUE. REQUEST THAT THE COUNCIL DISCUSS MODIFIED STANDARDS THAT PERMIT LIMITED SIGNAGE AND/OR APPROVED DISPLAYS THAT PROMOTE BUSINESSES YET DO NOT IMPEDE PEDESTRIAN TRAFFIC. (Continued from meeting of April 28, 2015) Councilmember Petty spoke to her request, garnering support from Mayor Tucker and Councilmember DiVirgilio. ADJOURNMENT The Regular meeting of the Hermosa Beach City Council adjourned at 10:27 p.m. on Tuesday, May 12, 2015, to an Adjourned Regular meeting at 6 p.m. Thursday, May 21, 2015 (for the designation of a City representative for labor negotiations), immediately followed by a Closed Session on labor negotiations, to be followed at 7 p.m. by a Budget/CIP workshop, which will adjourn to an Adjourned Regular meeting at 5:30 p.m. on Tuesday, May 26, 2015 (for interviews of Emergency Preparedness Advisory Commission applicants), to be followed at 6 p.m. by a joint City Council/Parks and Recreation Commission meeting, to be followed at 7 p.m. by the Regular meeting of the City Council, with all meetings (except the Closed Session) to take place in the City Council Chambers. ____________________________ ______________________________ City Clerk Deputy City Clerk Page 10Hermosa Beach Printed on 12/17/2015 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0012 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 DATES FOR THE 2015-16 MIDYEAR BUDGET REVIEW AND THE 2016-17 BUDGET WORKSHOP (Continued from meeting of January 12, 2016) (Finance Director Viki Copeland) Recommended Action: It is recommended that the City Council receive and file the following dates for the 2015-16 Midyear Budget Review and the 2016-17 Budget: Midyear Budget Review Tuesday, February 23, 2016, 7 P.M. Budget/CIP Workshop Thursday, May 19, 2015, 7 P.M. Background: Midyear Budget Review typically occurs in February at a regular Council meeting, with development of the 2016-17 Budget beginning immediately thereafter. We are recommending that one workshop be scheduled May 19, 2016 to review the proposed budget. With that goal in mind, we would be to adopt the budget at the first meeting in June. The 2016-17 Proposed Budget will be delivered to the City Council on or before May 15, 2016 as required by Municipal Code. Analysis: The proposed dates allow time to prepare answers to any questions from the workshop. Budget adoption will be tentatively scheduled for June 14, 2016. Attachments: 1. February 2016 Calendar 2. May 2016 Calendar 3. June 2016 Calendar Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0012 Respectfully Submitted by: Viki Copeland, Finance Director Concur: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0055 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING CHAPTER 2.56 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING EMERGENCY SERVICES (Interim Fire Chief Pete Bonano) Recommended Action: Introduce on first reading and waive full reading of an ordinance of the City of Hermosa Beach Municipal Code amending Chapter 2.56 regarding Emergency Services. Background: In 1977 the City created and adopted Chapter 2.56 Emergency Services of the Municipal Code in accordance with the State Emergency Services Act (California Government Code,Title 2,Division 1, Chapter 7,Article 10).This ordinance established a Disaster Council,including its powers,duties and composition;created the position of Director of Emergency Services,including the powers and duties; and established and defined the City’s emergency services organization. The Emergency Services Chapter has not been updated since 1995 and uses language based upon the Standardized Emergency Management System (SEMS).While SEMS is closely related to the now federally mandated National Incident Management System (NIMS),the proposed amended Code will reflect the use of nationally recognized terminology.The attached draft demonstrates all updates,which includes reassignment of Disaster Council positions,disaster planning and training for city employees. Analysis: The revisions that Staff is recommending to Chapter 2.56 of the Hermosa Beach Municipal Code are necessary to provide the City with the emergency powers,resources and increased liability protection needed at the time of a disaster,and to ensure the City’s eligibility to received State disaster assistance funds and Homeland Security grants funds.Additionally,the revisions are intended to reflect the current best practices regarding the authorities and responsibilities associated with municipal emergency management.In 2011 the City adopted the federally mandated National Incident Management System (NIMS).The recommended updates to the Code support the City’s efforts towards compliance with NIMS. Staff is recommending that the Disaster Council be led by the Director of Emergency Services who is Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0055 Staff is recommending that the Disaster Council be led by the Director of Emergency Services who is the city manager and comprised of police and/or fire chief(s),emergency manager and other representatives as appointed by the city manager.The Disaster Council will ensure that city staff are trained and exercised in emergency preparedness, response and recovery measures.(2.56.030) Also it’s recommended that the line of succession for the Director of Emergency Services be updated removing the mayor,whose duties along with other members of the City Council are more appropriately aligned with creating law during an emergency,and adding to the line of succession the police chief, fire chief, finance director, public works director and community development director. In summary,these changes are recommended to bring Hermosa Beach in line with best practice on how local government prepares and responds during a disaster.Additionally,these recommendations are consistent with the direction of the other Area G cities. Fiscal Implications: None Attachments: 1.Redline Version of Chapter 2.56 2.Redline Version of Ordinance 3.Final Version of Ordinance Respectfully Submitted by: Pete Bonano, Interim Fire Chief Legal Review: Mike Jenkins, City Attorney Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ ORDINANCE NO. 15-___ AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING CHAPTER 2.56 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING EMERGENCY SERVICES The City Council of the City of Hermosa Beach does hereby ordain as follows: Section 1. Section 2.56.020 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.020 Emergency definedDefinitions. A. Emergency As used in this chapter, "emergency" means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as air pollution, fire, flood, tsunami, storm, epidemic, riot, hazardous materials spill or earthquake, or other conditions, including conditions resulting from war or imminent threat of war, but other than conditions resulting from a labor controversy, and which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of this city, and require the combined forces of other political subdivisions to combat. B. Emergency Management “Emergency Management” means the preparation for and the carrying out of all emergency functions necessary to mitigate, prepa re for, respond to, and recover from emergencies and disasters caused by all hazards, whether natural, technological or human caused. Comprehensive emergency management consists of four related components: all hazards, all phases, all impacts, and all stakeholders. C. Emergency Response Organization “Emergency Response Organization (ERO)” means the organization that prepares for and carries out emergency operations by government, in order to prepare for, minimize and repair injury and damage resulting from actual or threatened emergency. All City Departments have a role in the ERO and all employees shall be Disaster Service Workers as set forth in California Government Code Section 3100-3109. Ordinance No. 15-___ Page 2 Section 2. Section 2.56.030 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.030 Disaster council created—membership. The Hermosa Beach disaster council is created and shall consist of the following: A. The city manager, who shall be the director of emergency services mayor, who shall be chairman; B. The Fire or Police Chief, as determined by the city manager who shall be vice-chairman; C. The emergency manager, who shall be the emergency services coordinator; D. The mayor, or as an alternate, mayor pro tem, who shall be the liaison; E.D. Representatives of each department emergency services serving the city as appointed by the city manager. F.E. If recommended by the city manager or members of the disaster council Such representatives of civic, business, labor, veteran, professional or other organizations having official emergency responsibilities, as may be appointed by the director with the advice and consent of the city council. Section 3. Section 2.56.040 of Chapter 2.56 (Emerge ncy Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.040 Disaster council—powers and duties. A. It shall be the duty of the Hermosa Beach disaster council to oversee the preparedness of city departments, ensuring unity of purpose. This includes preparation and approval of plans, training for employees for preparedness and disaster-related functions and other preparedness activities. B. The disaster council is empowered, to review, develop and recommend for adoption by the city council, emergency and mutual-aid plans and agreements and such ordinances and resolutions and rules Ordinance No. 15-___ Page 3 and regulations as are necessary to implement such plans and agreements. C. The director of emergency services shall advise the disaster council with regard to the preparation and maintenance of the plan in whole or in part at times of local emergency. D. The disaster council shall comply with the California Emergency Services Act and abide by the California Disaster and Civil Defense Master Mutual Aid Agreement. E. The disaster council shall formulate and maintain plans for use during emergency conditions, including a written plan for activation of the department as part of, and which carried out its role in the City Emergency Response Organization. F. The disaster council shall ensure that department personnel are trained in emergency management operations and that designated personnel participate in regular training and emergency exercises. G. The disaster council shall meet at least once per fiscal year upon call of the chairman or, in his or her absence from the city or inability to call such meeting, upon call of the vice-chairman. Section 4. Section 2.56.050 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.050 Director Incident commander of emergency services—office created—powers and duties. There is created the office of director of emergency services. The city manager shall be the director of emergency services. incident commander, however, if the city manager is absent, the line of succession shall be as follows: police chief, fire chief, public works director, community development director. The director of emergency services incident commander is empowered to: A. Request the mayor or, if the mayor is unavailable or unable to act, the mayor pro tempore to proclaim the existence of a local emergency or to proclaim said emergency himself/herself if neither the mayor nor mayor pro tempore is available or able to act; B. Request the governor to proclaim a state of emergency when, in the opinion of the director of emergency services, the resources of the area or region are inadequate to cope with the emergency; Ordinance No. 15-___ Page 4 C. Control and direct the efforts of the emergency organization of th ise city for the accomplishment of the purposes of this chapter; D. Direct coordination and cooperation of services and staff of the emergency organization of theis city, and resolve questions of authority and responsibility that may arise; E. Represent theis city in all dealings with public or private agencies on matters pertaining to emergencies as defined herein. Section 5. Section 2.56.060 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.060 Director of emergency services Incident commander— emergency power. After the declaration of a local emergency as herein provided, the proclamation of a state of emergency by the Governor or the Director of the State Office of Emergency Services, or the existence of a “state of war emergency,” the incident commander director of emergency services is empowered: A. To make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided however, such rules and regulations must be confirmed at the earliest practicable time by the city council; B. To proclaim a curfew, specify its terms and conditions, and terminate it. Such curfew regulations must be confirmed at the earliest practicable time by the city council; C. To obtain vital supplies, equipment and such other properties found lacking and needed for the protection of life and property and to bind the city for the fair value thereof and, if required immediately, to commandeer the same for public use; D. To require emergency services of any city officer or employee and, in the event of the proclamation of a state of emergency in the county in which this city is located or the existence of a state of war emergency, to command the aid of as many citizens residents of this community as he deems necessary in the execution of his duties; such persons shall be entitled to all privileges, benefits and immunities as are provided by state law for registered disaster service workers; Ordinance No. 15-___ Page 5 E. To requisition necessary personnel or material of any city department or agency; F. To exercise the powers conferred on him /her by this chapter or by resolution adopted under this chapter, powers conferred on him/her by statute, by agreement approved by the city council, or by other lawful authority, and in conformity with Section 38791 of the State Government Code, to exercise complete authority over the city and to exercise all police power vested in the city by constitution and general laws. Section 6. Section 2.56.080 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby added to read as follows: 2.56.080 Emergency operations plan. Emergency Operations Plan (EOP)--Formulation. The Hermosa Beach disaster council shall be responsible for the review, development and recommendation for adoption by the city council of the emergency operations plan of the city. Such plan shall provide for the effective mobilization of all the resources of this city, both public and private, to meet any condition constituting a local emergency, state of emergency, or state of war emergency; and shall provide for the organization, p owers and duties, services and staff of the emergency organization. A The plan shall bewas adopted by resolution of the city council on in 2006, took effect immediately, and is binding upon all city departments, employees and registered Disaster Service Worker Volunteers, and has the force of law whenever an emergency, as defined in this chapter, has been proclaimed. The plan shall be updated and approved by the disaster council every three years. The Emergency Operations Plan shall be based on the Standardized Emergency Management System (Government Code 8607), the National Incident Management System (Homeland Security Presidential Directive 5), and consistent with the plans of the state and federal governments and shall hereafter be referred to as "the EOP." A. EOP--Contents. The EOP shall set up the assignment of emergency duties and functions of all city agencies and employees, and volunteer organizations, as well as the lines of succession of the members of the Emergency Response Organization. Ordinance No. 15-___ Page 6 B. EOP--Adoption and amending. The EOP and amendments thereto shall be placed on file with the City Clerk by the Director, and approved or disapproved by the City Council within thirty ninety days of such filing. The EOP, and amendments if any, shall be effec tive upon filing with the City Clerk unless disapproved by the City Council within thirty ninety days of such filing. C. Director--Assignment of duties and functions. In assigning emergency duties and functions to City agencies and personnel, the Directo r shall assign responsibilities to utilize to the maximum the skills and talents of City employees. When the requisite skill or talent for a particular responsibility is not available within the City government, the Director is authorized to seek assistance on a volunteer basis from persons outside the City government. The Director shall assign duties to such persons, and grant the authority to carry out their respective responsibilities during and after the occurrence of a disaster. D. EOP--Effect. The EOP shall be binding upon all agencies of City government, its employees and registered volunteer disaster service workers, and have the effect of law whenever an emergency, as provided in this chapter, has been proclaimed. E. Organization--Creation. There is created the Hermosa Beach Emergency Response Organization. All officers and employees of the City shall be a part of such organization. The Director or designee shall train and organize all employees and officers of the City for purposes of maintaining the emergency capability of the City. The Director is authorized to use volunteer forces during an emergency including, but not limited to, groups, organizations, and persons who by agreement or by operation of law are charged with the duty to protect the life and property of persons in the City during a disaster. Section 7. Section 2.56.090 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby amended to read as follows: 2.56.090 Local emergency--proclamation--mutual aid--orders and regulations. A local emergency may be proclaimed by the city council or by an official designated by this chapter. Whenever a local emergency is proclaimed by an official designated by ordinance the local emergency shall not remain in effect for a period in excess of seven days unless it has been ratified by the city council. The city council shall review, at least every fourteen (14) days until such local emergency is Ordinance No. 15-___ Page 7 terminated, the need for continuing the local emergency and shall proclaim the termination of such local emergency at the earliest possible date that conditions warrant. In periods of local emergency, political subdivisions have full power to provide mutual aid to any affected area in accordance with local ordinances, resolutions, emergency plans, or agreements therefor. During a local emergency, the city council, or officials designated thereby, may promulgate orders and regulations necessary to provide for the protection of life, property, and the environment including orders or regulations imposing a curfew within designated boundaries where necessary to preserve the public order and safety. Such orders, regulations, amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice. (Prior code § 8 -9) Section 78. This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines (the Guidelines), and the environmental regulations of the City. The City Council hereby finds that under Section 15061(b)(3) of the State CEQA Guidelines, this Ordinance is exempt from the requirements of CEQA because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment. PASSED, APPROVED AND ADOPTED THIS ____ day of ______, 20 165. MAYOR ATTEST: City Clerk ORDINANCE NO. 15-___ AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING CHAPTER 2.56 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING EMERGENCY SERVICES The City Council of the City of Hermosa Beach does hereby ordain as follows: Section 1. Section 2.56.020 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.020 Emergency definedDefinitions. A. Emergency As used in this chapter, "emergency" means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as air pollution, fire, flood, tsunami, storm, epidemic, riot, hazardous materials spill or earthquake, or other conditions, including conditions resulting from war or imminent threat of war, but other than conditions resulting from a labor controversy, and which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of this city, and require the combined forces of other political subdivisions to combat. B. Emergency Management “Emergency Management” means the preparation for and the carrying out of all emergency functions necessary to mitigate, prepa re for, respond to, and recover from emergencies and disasters caused by all hazards, whether natural, technological or human caused. Comprehensive emergency management consists of four related components: all hazards, all phases, all impacts, and all stakeholders. C. Emergency Response Organization “Emergency Response Organization (ERO)” means the organization that prepares for and carries out emergency operations by government, in order to prepare for, minimize and repair injury and damage resulting from actual or threatened emergency. All City Departments have a role in the ERO and all employees shall be Disaster Service Workers as set forth in California Government Code Section 3100-3109. Ordinance No. 15-___ Page 2 Section 2. Section 2.56.030 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.030 Disaster council created—membership. The Hermosa Beach disaster council is created and shall consist of the following: A. The city manager, who shall be the director of emergency services mayor, who shall be chairman; B. The Fire or Police Chief, as determined by the city managercity manager, who shall be the director of emergency services, who shall be the vice-chairman. B.C. The emergency manager, who shall be the emergency services coordinator; C.D. Representatives of each department emergency services serving the city as appointed by the city manager. provided for by resolution under this chapter and approved by city council. D.E. If recommended by the city manager or members of the disaster council,Such representatives of civic, business, labor, veteran, professional or other organizations having official emergency responsibilities, as may be appointed by the director with the advice and consent of the city council. Section 3. Section 2.56.040 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.040 Disaster council—powers and duties. A. It shall be the duty of the Hermosa Beach disaster council to oversee the preparedness of city departments, ensuring unity of purpose. This includes preparation and approval of plans, training for employees for preparedness and disaster-related functions and other preparedness activities. B. The disaster council is empowered, to review, develop and recommend for adoption by the city council, emergency and mutual-aid plans and agreements and such ordinances and resolutions and rules and regulations as are necessary to implement such plans and agreements. Ordinance No. 15-___ Page 3 C. The director of emergency services shall advise the disaster council with regard to the preparation and maintenance of the plan in whole or in part at times of local emergency. D. The disaster council shall comply with the California Emergency Services Act and abide by the California Disaster and Civil Defense Master Mutual Aid Agreement. E. The disaster council shall formulate and maintain plans for use during emergency conditions, including a written plan for activation of the department as part of, and which carried out its role in the City Emergency Response Organization. F. The disaster council shall ensure that department personnel are trained in emergency management operations and that designated personnel participate in regular training and emergency exercises. G. The disaster council shall meet at least once per fiscal year upon call of the chairman or, in his absence from the city or inability to call such meeting, upon call of the vice-chairman. Section 4. Section 2.56.050 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.050 Director Incident commander of emergency services—office created—powers and duties. There is created the office of director of emergency services. The city manager shall be the director of emergency services incident commander, however, if the city manager is absent, the mayor shall be the incident commander. The director of emergency services incident commander is empowered to: A. Request the mayor or, if the mayor is unavailable or unable to act, the mayor pro tempore to proclaim the existence of a local emergency or to proclaim said emergency himself/herself if neither the mayor nor mayor pro tempore is available or able to act; B. Request the governor to proclaim a state of emergency when, in the opinion of the director of emergency services, the resources of the area or region are inadequate to cope with the emergency; C. Control and direct the efforts of the emergency organization of this city for the accomplishment of the purposes of this chapter; Ordinance No. 15-___ Page 4 D. Direct coordination and cooperation of services and staff of the emergency organization of this city, and resolve questions of authority and responsibility that may arise; E. Represent this city in all dealings with public or private agencies on matters pertaining to emergencies as defined herein. Section 5. Section 2.56.060 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.060 Director of emergency services Incident commander— emergency power. After the declaration of a local emergency as herein provided, the proclamation of a state of emergency by the Governor or the Director of the State Office of Emergency Services, or the existence of a “state of war emergency,” the incident commander director of emergency services is empowered: A. To make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided however, such rules and regulations must be confirmed at the earliest practicable time by the city council; B. To proclaim a curfew, specify its terms and conditions, and terminate it. Such curfew regulations must be confirmed at the earliest practicable time by the city council; C. To obtain vital supplies, equipment and such other properties found lacking and needed for the protection of life and property and to bind the city for the fair value thereof and, if required immediately, to commandeer the same for public use; D. To require emergency services of any city officer or employee and, in the event of the proclamation of a state of emergency in the county in which this city is located or the existence of a state of war emergency, to command the aid of as many citizens of this community as he deems necessary in the execution of his duties; such persons shall be entitled to all privileges, benefits and immunities as are provided by state law for registered disaster service workers; E. To requisition necessary personnel or material of any city department or agency; Ordinance No. 15-___ Page 5 F. To exercise the powers conferred on him /her by this chapter or by resolution adopted under this chapter, powers conferred on him /her by statute, by agreement approved by the city council, or by other lawful authority, and in conformity with Section 38791 of the State Government Code, to exercise complete authority over the city and to exercise all police power vested in the city by con stitution and general laws. Section 6. Section 2.56.080 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby added to read as follows: 2.56.080 Emergency operations plan. Emergency Operations Plan (EOP)--Formulation. The Hermosa Beach disaster council shall be responsible for the review, development and recommendation for adoption by the city council of the emergency operations plan of the city. Such plan shall provide for the effe ctive mobilization of all the resources of this city, both public and private, to meet any condition constituting a local emergency, state of emergency, or state of war emergency; and shall provide for the organization, powers and duties, services and staff of the emergency organization. A plan shall be adopted by resolution of the city council and is binding upon all city departments, employees and registered Disaster Service Worker Volunteers, and has the force of law whenever an emergency, as defined in this chapter, has been proclaimed. The plan shall be updated and approved by the disaster council every three years. The Emergency Operations Plan shall be based on the Standardized Emergency Management System (Government Code 8607), the National Incident Management System (Homeland Security Presidential Directive 5), and consistent with the plans of the state and federal governments and shall hereafter be referred to as "the EOP." A. EOP--Contents. The EOP shall set up the assignment of emergency duties and functions of all city agencies and employees, and volunteer organizations, as well as the lines of succession of the members of the Emergency Response Organization. B. EOP--Adoption and amending. The EOP and amendments thereto shall be placed on file with the City Clerk by the Director, and approved or disapproved by the City Council within thirty days of such filing. The EOP, and amendments if any, shall be effective upon filing with the Ordinance No. 15-___ Page 6 City Clerk unless disapproved by the City Council within thi rty days of such filing. C. Director--Assignment of duties and functions. In assigning emergency duties and functions to City agencies and personnel, the Director shall assign responsibilities to utilize to the maximum the skills and talents of City employees. When the requisite skill or talent for a particular responsibility is not available within the City government, the Director is authorized to seek assistance on a volunteer basis from persons outside the City government. The Director shall assign duties to such persons, and grant the authority to carry out their respective responsibilities during and after the occurrence of a disaster. D. EOP--Effect. The EOP shall be binding upon all agencies of City government, its employees and registered volunteer disaster service workers, and have the effect of law whenever an emergency, as provided in this chapter, has been proclaimed. E. Organization--Creation. There is created the Hermosa Beach Emergency Response Organization. All officers and employees of the City shall be a part of such organization. The Director or designee shall train and organize all employees and officers of the City for purposes of maintaining the emergency capability of the City. The Director is authorized to use volunteer forces during an emergency including, but not limited to, groups, organizations, and persons who by agreement or by operation of law are charged with the duty to protect the life and property of persons in the City during a disaster. Section 7. Section 2.56.090 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby amended to read as follows: 2.56.090 Local emergency—proclamation—mutual aid—orders and regulations. A local emergency may be proclaimed by the city council or by an official designated by this chapter. Whenever a local emergency is proclaimed by an official designated by ordinance the local emergency shall not remain in effect for a period in excess of seven days unless it has been ratified by the city council. The city council shall review, at least every fourteen (14) days until such local emergency is terminated, the need for continuing the local emergency and shall proclaim the termination of such local emergency at the earliest possible date that conditions warrant. Ordinance No. 15-___ Page 7 In periods of local emergency, political subdivisions have full power to provide mutual aid to any affected area in accordance with local ordinances, resolutions, emergency plans, or agreements therefor. During a local emergency, the city council, or officials designated thereby, may promulgate orders and regulations necessary to provide for the protection of life, and property, and the environment including orders or regulations imposing a curfew within designated boundaries where necessary to preserve the public order and safety. Such orders, regulations, amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice. (Prior code § 8 -9) Section 8. This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines (the Guidelines), and the environmental regulations of the City. The City Council hereby finds that under Section 1 5061(b)(3) of the State CEQA Guidelines, this Ordinance is exempt from the requirements of CEQA because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment. PASSED, APPROVED AND ADOPTED THIS ____ day of ______, 20 15. MAYOR ATTEST: City Clerk ORDINANCE NO. 15-___ AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING CHAPTER 2.56 OF THE HERMOSA BEACH MUNICIPAL CODE REGARDING EMERGENCY SERVICES The City Council of the City of Hermosa Beach does hereby ordain as follows: Section 1.Section 2.56.020 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.020 Definitions. A. Emergency As used in this chapter, "emergency" means the actual or threatened existence of conditions of disaster or of extreme peril to the safety of persons and property within this city caused by such conditions as air pollution, fire, flood, tsunami, storm, epidemic, riot, hazardous materials spill or earthquake, or other conditions, including conditions resulting from war or imminent threat of war, but other than conditions resulting from a labor controversy, and which conditions are or are likely to be beyond the control of the services, personnel, equipment and facilities of this city, and require the combined forces of other political subdivisions to combat. B. Emergency Management “Emergency Management” means the preparation for and the carrying out of all emergency functions necessary to mitigate, prepare for, respond to, and recover from emergencies and disasters caused by all hazards, whether natural, technological or human caused. Comprehensive emergency management consists of four related components: all hazards, all phases, all impacts, and all stakeholders. C. Emergency Response Organization “Emergency Response Organization (ERO)” means the organization that prepares for and carries out emergency operations by government, in order to prepare for, minimize and repair injury and damage resulting from actual or threatened emergency. All City Departments have a role in the ERO and all employees shall be Disaster Service Workers as set forth in California Government Code Section 3100-3109. Ordinance No. 15-___ Page 2 Section 2.Section 2.56.030 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.030 Disaster council created—membership. The Hermosa Beach disaster council is created and shall consist of the following: A. The city manager, who shall be the director of emergency services, who shall be chair; B. The Fire or Police Chief, as determined by the city manager, who shall be the vice-chair. C. The emergency manager, who shall be the emergency services coordinator; D. Representatives of each department serving the city as appointed by the city manager. E. If recommended by the city manager or members of the disaster council,representatives of civic, business, labor, veteran, professional or other organizations having official emergency responsibilities, as may be appointed by the director with the advice and consent of the city council. Section 3.Section 2.56.040 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.040 Disaster council – powers and duties. A. It shall be the duty of the Hermosa Beach disaster council to oversee the preparedness of city departments, ensuring unity of purpose. This includes preparation and approval of plans, training for employees for preparedness and disaster-related functions and other preparedness activities. B. The disaster council is empowered, to review and recommend for adoption by the city council, emergency and mutual-aid plans and agreements and such ordinances and resolutions and rules and regulations as are necessary to implement such plans and agreements. Ordinance No. 15-___ Page 3 C. The director of emergency services shall advise the disaster council with regard to the preparation and maintenance of the plan in whole or in part at times of local emergency. D. The disaster council shall comply with the California Emergency Services Act and abide by the California Disaster and Civil Defense Master Mutual Aid Agreement. E. The disaster council shall formulate and maintain plans for use during emergency conditions, including a written plan for activation of the department as part of, and which carried out its role in the City Emergency Response Organization. F. The disaster council shall ensure that department personnel are trained in emergency management operations and that designated personnel participate in regular training and emergency exercises. G. The disaster council shall meet at least once per fiscal year upon call of the chairman or, in his absence from the city or inability to call such meeting, upon call of the vice-chairman. Section 4.Section 2.56.050 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.050 Director of emergency services – office created powers and duties. There is created the office of director of emergency services. The city manager shall be the director of emergency services. The director of emergency services is empowered to: A. Request the mayor or, if the mayor is unavailable or unable to act, the mayor pro tempore to proclaim the existence of a local emergency or to proclaim said emergency himself/herself if neither the mayor nor mayor pro tempore is available or able to act; B. Request the governor to proclaim a state of emergency when, in the opinion of the director of emergency services, the resources of the area or region are inadequate to cope with the emergency; C. Control and direct the efforts of the emergency organization of this city for the accomplishment of the purposes of this chapter; Ordinance No. 15-___ Page 4 D. Direct coordination and cooperation of services and staff of the emergency organization of this city, and resolve questions of authority and responsibility that may arise; E. Represent this city in all dealings with public or private agencies on matters pertaining to emergencies as defined herein. Section 5.Section 2.56.060 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is amended to read as follows: 2.56.060 Director of emergency services – emergency power. After the declaration of a local emergency as herein provided, the proclamation of a state of emergency by the Governor or the Director of the State Office of Emergency Services, or the existence of a “state of war emergency,” the director of emergency services is empowered: A. To make and issue rules and regulations on matters reasonably related to the protection of life and property as affected by such emergency; provided however, such rules and regulations must be confirmed at the earliest practicable time by the city council; B. To proclaim a curfew, specify its terms and conditions, and terminate it. Such curfew regulations must be confirmed at the earliest practicable time by the city council; C. To obtain vital supplies, equipment and such other properties found lacking and needed for the protection of life and property and to bind the city for the fair value thereof and, if required immediately, to commandeer the same for public use; D. To require emergency services of any city officer or employee and, in the event of the proclamation of a state of emergency in the county in which this city is located or the existence of a state of war emergency, to command the aid of as many citizens of this community as he deems necessary in the execution of his duties; such persons shall be entitled to all privileges, benefits and immunities as are provided by state law for registered disaster service workers; E. To requisition necessary personnel or material of any city department or agency; F. To exercise the powers conferred on him/her by this chapter or by resolution adopted under this chapter, powers conferred on him/her by Ordinance No. 15-___ Page 5 statute, by agreement approved by the city council, or by other lawful authority, and in conformity with Section 38791 of the State Government Code, to exercise complete authority over the city and to exercise all police power vested in the city by constitution and general laws. Section 6.Section 2.56.080 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby added to read as follows: 2.56.080 Emergency operations plan. Emergency Operations Plan (EOP) Formulation. The Hermosa Beach disaster council shall be responsible for the review and recommendation for adoption by the city council of the emergency operations plan of the city. Such plan shall provide for the effective mobilization of all the resources of this city, both public and private, to meet any condition constituting a local emergency, state of emergency, or state of war emergency; and shall provide for the organization, powers and duties, services and staff of the emergency organization. A plan shall be adopted by resolution of the city council and is binding upon all city departments, employees and registered Disaster Service Worker Volunteers, and has the force of law whenever an emergency, as defined in this chapter, has been proclaimed. The plan shall be updated and approved by the disaster council every three years. The Emergency Operations Plan shall be based on the Standardized Emergency Management System (Government Code 8607), the National Incident Management System (Homeland Security Presidential Directive 5), and consistent with the plans of the state and federal governments and shall hereafter be referred to as "the EOP." A. EOP--Contents. The EOP shall set up the assignment of emergency duties and functions of all city agencies and employees, and volunteer organizations, as well as the lines of succession of the members of the Emergency Response Organization. B. EOP--Adoption and amending. The EOP and amendments thereto shall be placed on file with the City Clerk by the Director, and approved or disapproved by the City Council within thirty days of such filing. The EOP, and amendments if any, shall be effective upon filing with the City Clerk unless disapproved by the City Council within thirty days of such filing. Ordinance No. 15-___ Page 6 C. Director--Assignment of duties and functions. In assigning emergency duties and functions to City agencies and personnel, the Director shall assign responsibilities to utilize to the maximum the skills and talents of City employees. When the requisite skill or talent for a particular responsibility is not available within the City government, the Director is authorized to seek assistance on a volunteer basis from persons outside the City government. The Director shall assign duties to such persons, and grant the authority to carry out their respective responsibilities during and after the occurrence of a disaster. D. EOP--Effect. The EOP shall be binding upon all agencies of City government, its employees and registered volunteer disaster service workers, and have the effect of law whenever an emergency, as provided in this chapter, has been proclaimed. E. Organization--Creation. There is created the Hermosa Beach Emergency Response Organization. All officers and employees of the City shall be a part of such organization. The Director or designee shall train and organize all employees and officers of the City for purposes of maintaining the emergency capability of the City. The Director is authorized to use volunteer forces during an emergency including, but not limited to, groups, organizations, and persons who by agreement or by operation of law are charged with the duty to protect the life and property of persons in the City during a disaster. Section 7. Section 2.56.090 of Chapter 2.56 (Emergency Services) of Title 2 (Administration and Personnel) of the Hermosa Beach Municipal Code is hereby amended to read as follows: 2.56.090 Local emergency proclamation, mutual aid orders and regulations. A local emergency may be proclaimed by the city council or by an official designated by this chapter. Whenever a local emergency is proclaimed by an official designated by ordinance the local emergency shall not remain in effect for a period in excess of seven days unless it has been ratified by the city council. The city council shall review, at least every fourteen (14) days until such local emergency is terminated, the need for continuing the local emergency and shall proclaim the termination of such local emergency at the earliest possible date that conditions warrant. Ordinance No. 15-___ Page 7 In periods of local emergency, political subdivisions have full power to provide mutual aid to any affected area in accordance with local ordinances, resolutions, emergency plans, or agreements therefor. During a local emergency, the city council, or officials designated thereby, may promulgate orders and regulations necessary to provide for the protection of life, property, and the environment including orders or regulations imposing a curfew within designated boundaries where necessary to preserve the public order and safety. Such orders, regulations, amendments and rescissions thereof shall be in writing and shall be given widespread publicity and notice. (Prior code § 8-9) Section 8. This Ordinance was assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), the State CEQA Guidelines (the Guidelines), and the environmental regulations of the City. The City Council hereby finds that under Section 15061(b)(3) of the State CEQA Guidelines, this Ordinance is exempt from the requirements of CEQA because it can be seen with certainty that the provisions contained herein would not have the potential for causing a significant effect on the environment. PASSED, APPROVED AND ADOPTED THIS ____ day of ______, 2015. MAYOR ATTEST: City Clerk Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0099 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 DIRECTION REGARDING THE PROPOSED WEST BASIN MUNICIPAL WATER DISTRICT DESALINATION PROJECT, AND THE RELATED EIR AND OTHER UPCOMING ACTIVITIES, INCLUDING PROVIDING COMMENTS RELATING TO THE EIR, AND EVALUATING TAKING A POSITION IN SUPPORT OF OR IN OPPOSITION TO, THE PROPOSED DESALINATION PROJECT (Environmental Analyst Kristy Morris) Recommended Action: Provide direction regarding the proposed West Basin Municipal Water District Desalination Project, and the related EIR, and evaluating whether the City should take a position in support of, or in opposition to, the proposed desalination project. Background: On Wednesday September 30, 2015 staff attended a Desalination Environmental Impact Report (EIR) Informational Meeting at West Basin Municipal Water District (WBMWD) El Segundo Facility. West Basin Staff provided an overview of the proposed Ocean Water Desalination Project at two (2) proposed locations: 1)NRG power generating station site (El Segundo, CA) 2)AES power generation station (Redondo Beach, CA) WBMWD staff presented the following schedule for the preparation and release of the EIR: Date Action Item August 31, 2015 Release Full Scale Ocean Water Desalination Facility Notice of Preparation (NOP). September 29 and 30, 2015 Scoping Meetings October 15, 2015 NOP Comment Period Closed October 2015-January 2016 Technical Studies and Impact Quantification (internal) Spring 2016 Anticipated Draft EIR Release Summer 2016 Draft EIR Comment Review Fall 2016 Anticipated Final EIR Certification Hermosa Beach Printed on 1/21/2016Page 1 of 3 powered by Legistar™ Staff Report REPORT 16-0099 Date Action ItemAugust 31, 2015 Release Full Scale Ocean Water Desalination Facility Noticeof Preparation (NOP). September 29 and 30, 2015 Scoping Meetings October 15, 2015 NOP Comment Period Closed October 2015-January 2016 Technical Studies and Impact Quantification (internal) Spring 2016 Anticipated Draft EIR Release Summer 2016 Draft EIR Comment Review Fall 2016 Anticipated Final EIR Certification Hermosa Beach and Redondo Beach did not provide comments in response to the NOP. The City of Manhattan Beach and non-government organizations (NGOs) including the LA Waterkeeper and the Sierra Club sent letters opposing the proposed desalination project. Staff provided City Council with an update on the Desalination EIR Informational Meeting at the October 27, 2015 Regular City Council Meeting. At the December 8, 2015 Regular City Council meeting Mayor Pro Tem Fangary requested staff provide Council with an objective and independent assessment of the positions of WBMWD and other stakeholders and to request that West Basin's government affairs manager EJ Caldwell present the proposed project to City Council. Analysis: Staff outreached to the neighboring cities of Redondo Beach, Manhattan Beach and El Segundo to determine if their City Councils have provided direction to staff on participating in the EIR process and if they have taken a position in support of, or in opposition to, the proposed desalination project. The City of Redondo Beach did not respond with comments. The Manhattan Beach City Council will consider sending a letter of opposition to West Basin at their February 16, 2016 City Council meeting (Attachment 1). At the October 6, 2015 City Council meeting, Council directed staff to prepare written comments in response to the Notice of Preparation which were submitted to WBMWD for consideration: <https://manhattanbeach.legistar.com/LegislationDetail.aspx?ID=2474699&GUID=F4BA9144-EE5D- 435B-BBD7-7517C8367CE1&FullText=1> Greg Carpenter, City Manager for the City of El Segundo, expressed that the City has not taken a position and likely won’t until the draft EIR has been reviewed. From El Segundo’s perspective, it’s premature to do so until the project has been defined. Generally, the City is supportive of efforts to diversify and increase the region’s water supply and the site in El Segundo is designated heavy industrial on both their General Plan and Zoning maps so it may be a project that the City will ultimately support. Patrick Thomas, Public Works Director at the City of Carlsbad, described the City’s experience with the Claude "Bud" Lewis Carlsbad Desalination Plant. The City pursued the project to reduce its dependence on imported water, and to provide a reliable local water supply. Mr. Thomas explained that it took more than two decades to plan, design, permit, and construct the project and that the plant began delivering water to the businesses and residents of San Diego County in December 2015. The City of Carlsbad and neighboring cities were supportive of the project through the entire process, Hermosa Beach Printed on 1/21/2016Page 2 of 3 powered by Legistar™ Staff Report REPORT 16-0099 however, there was significant opposition from NGOs through the EIR process. The City’s certified EIR concluded that the desalination plant can operate without significant impacts to marine life and there are monitoring and reporting requirements to ensure water quality and marine ecosystem protections are in place. Mr. Thomas commented that the only issue to date is that the cost of water is higher compared to imported water. It was anticipated in the planning phase that at some time in the future the cost of imported water would increase so that the cost of desalinated water would be more competitive. To date, the City of Hermosa Beach has not taken a position in support of, or in opposition to, the proposed WBMWD desalination project and staff have not been directed to participate in upcoming activities, including providing comments relating to the EIR. Staff are requesting direction from City Council regarding the position and level of participation, if any, in the proposed West Basin Municipal Water District Desalination Project. Participation by staff will require an assessment of current resources and priorities and if Council decides to pursue a more participatory role we would need additional resources, or to re-prioritize other projects. Fiscal Implications: None Attachments: 1.City of Manhattan Beach Letter of Opposition Respectfully Submitted by: Kristy Morris, Environmental Analyst Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 3 of 3 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0095 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2015 2014-15 COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR) (Including Report from Independent Auditor) (Finance Director Viki Copeland) Recommended Action: It is recommended that the City Council receive and file the 2014-15 Comprehensive Annual Financial Report (CAFR), which includes the report from Pun & McGeady, LLP, 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”. For 2014-15,the City again received an unmodified opinion,which indicates that the auditor believes the financial statements present a fair picture of the financial position of the City,as opposed to a modified opinion,in which the auditor “modified”or limits his opinion for specific reasons,such as lack of capital asset accounting,significant internal control deficiencies or non-compliance with other Government Accounting Standards Board (GASB) requirements. The report was submitted to the Government Finance Officers Association (GFOA) to qualify for the Certificate of Achievement for Excellence in Financial Reporting. The City has received the award since 1990. The award program requires a high level of compliance with governmental standards, inclusion of information well beyond the general-purpose financial statements and an unqualified audit opinion. Analysis: The City implemented Governmental Accounting Standards Board (GASB) 68 Accounting and Financial Reporting for Pension and GASB 71,Pension Transition for Contributions Made Subsequent to the Measurement Date- an amendment of GASB Statement No 68 in 2014-15. The main impacts to the financial statements are the recording of the net pension liability in the government-wide financial statements on pages 21-24, the restatement of net position as of July 1, 2014, which is outlined in Note 16 on page 89, and enhanced disclosures to Note 9- Defined Benefit Hermosa Beach Printed on 1/21/2016Page 1 of 7 powered by Legistar™ Staff Report REPORT 16-0095 Pension Plans on pages 63-79 and Required Supplementary Information on pages 95 to 101. While GASB 68 implements changes to accounting and reporting of pensions, it does not impact the way pensions are funded. Furthermore, since the net pension liability is payable over an extended time horizon, it does not represent a claim on current financial resources. As a reminder, we implemented GASB 54,Fund Balance Reporting and Governmental Fund Type Definitions in 2012-13. This statement establishes fund classifications based upon constraints imposed on the use of resources in governmental funds. The primary initial impact of this classification change is that funds we previously held separately, the Contingency Fund, Compensated Absences Fund, and the Retirement Stabilization Fund are now shown in the General Fund. They show in a combined total as “Assigned” on CAFR page 30, the Balance Sheet for Governmental Funds. The policy for these funds shows on page 54 in Note 1 of the CAFR and detailed amount will show in Note 11 on page 83. Also, as a helpful reminder in reading the CAFR, the reporting model (GASB 34) that was implemented in 2002 dictates the following: ·Presentation of financial information in specific formats, namely, the Government Wide Financial Statements, beginning on page 21. These are designed to show net assets and equity of the City as a whole and to provide information on the cost of services and show how programs are financed. ·Requires Management’s Discussion and Analysis (MD & A) to present financial highlights and assess performance for the year. ·Requires reporting on “major” funds rather than aggregate fund types. ·Requires accrual accounting (in the Government Wide Statements) for all governmental funds, meaning that long term assets and liabilities (such as capital assets, including infrastructure) are included in addition to short term assets and liabilities. All revenues and all costs of providing services are also reported, not just those received or paid in or soon after year-end. Additional information and analysis can be found in the Transmittal Letter starting on page v and in the Management Discussion and Analysis (MD & A) starting on page 7. Since comparative information for the General Fund for 2013-14 and 2014-15 is not included in the CAFR, it is presented below. Some of the comments from the MD&A and Transmittal letter mentioned above are repeated herein for the purpose of having this staff report stand alone. Hermosa Beach Printed on 1/21/2016Page 2 of 7 powered by Legistar™ Staff Report REPORT 16-0095 General Fund Revenue General Fund revenue increased 4.6% over 2013-14. Taxes Revenue from taxes generates 66.5% of General Fund revenue. The graph below tracks select tax revenue sources over the past ten years. Total property tax revenue increased 6.4%. The graph above shows secured tax, which increased 7% and unsecured tax, which increased 12% respectively. Hermosa Beach’s assessed valuation for th Hermosa Beach Printed on 1/21/2016Page 3 of 7 powered by Legistar™ Staff Report REPORT 16-0095 secured and unsecured property increased 6.2% overall. The 6.2% growth was the 12 th highest of 88 cities in Los Angeles County. Median home prices in Hermosa Beach for June 2015 were $1,361,000 as compared to Los Angeles County’s median price of $525,000. The average median home price for Hermosa Beach for fiscal year 2014-15 was $1,455,550 compared to $1,159,125 for the prior year. Sales Tax By Geographic Area Revenue % OF Revenue % OF LOCATION 2013-14 Total % Chg 2014-15 Total PCH 803,142 42%3%824,975 40% Downtown 766,682 40%8%826,167 40% Pier/Valley/Monterey 258,479 13%17%302,544 15% Aviation 93,727 5%0.4%94,138 5% Sales Tax By Class* Top Ten Categories Hermosa Beach Printed on 1/21/2016Page 4 of 7 powered by Legistar™ Staff Report REPORT 16-0095 Sales tax revenue is up 4% from 2013-14 and at $2.8 million is higher than the pre-recession levels. Eating and Drinking Places, the highest revenue-generating category, increased by 15%. The second highest category, Other Retail, experienced a slight decline of 2% from the 17% increase in the prior year. The third highest category, Building Material, grew 9% and is consistent with the continuing uptick in building permits. Transient occupancy tax continues to be up, increasing 6% over 2013-14; another very positive note. Hotel occupancy was 81% for 14-15, which is slightly lower than the 81.1% of the prior year. Revenue was over $2.3 million, our highest year ever. The License and Permit category decreased 6% due to a slight decline in building and plumbing permits from 2013-14 and a decrease in taxicab franchise fees due to fewer taxis registering. Fines and Forfeitures were down 5% due to a decrease in court fines/parking caused by personnel shortages. Service Charges show an increase of 10% due to an increase in plan check fees. Additionally parking revenue was up due to implementation of demand pricing after the parking meter trial. Interest Earnings increased due primarily to participation in the Los Angeles County Investment Pool. General Fund Expenditures Expenditures show an increase of 5.8%. Without Capital Outlay expenditures, which vary from year to year, the increase would be 4.3%. In 2014-15, Capital Outlay expenditures were up due to a large number of projects including the following: Street Improvements, PCH-Aviation Beautification, South Hermosa Beach Printed on 1/21/2016Page 5 of 7 powered by Legistar™ Staff Report REPORT 16-0095 Park, Citywide Energy Conservation Upgrades, Surf Memorial, and Municipal Pier Structural Repairs. The increase in General Government is primarily due to personnel costs related to the conversion of two Management Analyst positions to full-time permanent (one of which was added at mid-year), the hiring of a full-time/temporary Environmental Coordinator, and additional part-time/temporary staff in the Finance Department. Additionally, there was an increase in contract services related to priority based budgeting and the fiscal health diagnostic tool. The increase in Community Development is due to work being done on the General and Local Coast Plans. Additionally, there was an increase in personnel costs related to the conversion of the full-time temporary Planning Assistant to full-time permanent, the addition of a premium for the Senior Planner, and having a full-time temporary Code Enforcement Officer for the entire year. General Fund Unspent Funds The policy of transferring unspent funds in the General Fund to the Insurance Fund, Equipment Replacement Fund (ERF) and Compensated Absences Fund was implemented in 1995-96 to build equity and provide funds for amounts owed to employees for accumulated leave. The policy was changed in 1998-99 to discontinue allocating funds to the Compensated Absences Fund (since the target amount was reached), to create a Capital Improvement Fund for street and other capital improvements and to include a goal for Contingency funds in the policy. The Contingency Policy was changed from 15% of appropriations for operating funds to 16% in 2014-15 in keeping with best practices. The City Council amends the policy, as necessary, when goals or targets are met and depending on where funds are needed. For several years, funds available at year end were transferred to the Insurance Fund to cover estimated insurance claims liabilities and the oil settlement agreement. For 2013-14 and 2014-15 funds available at year end were transferred to the Capital Improvement Fund. For 2014-15, the amount transferred was $2,610,442. Funds available in the General Fund for the transfer out resulted from additional revenue over budget of approximately 3% and expenditures under budget by approximately 11% due to unfilled positions and Capital Improvement Projects not completed in 2014-15. Insurance Fund As a result of the oil settlement with E&B Natural Resources, the City made a payment of $6,000,000 in 2014-15 and recorded an additional $11,500,000 as a settlement payable as of 6/30/15. The remaining liability was paid in August 2016 after the City issued lease revenue bonds. The chart below shows the change in claims expense for Workers Compensation and Liability. The year-end liability is established annually through an actuarial study performed by the Independent Cities Risk Management Authority independent actuary. Claims payments for worker’s Hermosa Beach Printed on 1/21/2016Page 6 of 7 powered by Legistar™ Staff Report REPORT 16-0095 compensation are higher and liability cases are lower in 2014-15. Overall claims expense was lower by over $1,166,555. Changes to Claims Expense Next Financial Review The next opportunity to review our financial picture will be the Mid-Year Budget review on February 23rd at 7:00 p.m. The reports are available for review online at <http://www.hermosabch.org/index.aspx?page=209>. If you have particular questions about details in any of the reports, we would appreciate knowing them in advance so we can give you a complete answer. Ken Pun, the partner from our audit firm, Pun and McGready, will be present at the meeting. Attachments: 1. 2015-16 CAFR Respectfully Submitted by: Viki Copeland, Finance Director Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 7 of 7 powered by Legistar™ City of Hermosa Beach, California Comprehensive Annual Financial Report For the Year Ended June 30, 2015 City of Hermosa Beach Hermosa Beach, California Comprehensive Annual Financial Report For the Fiscal Year Ended June 30, 2015 Prepared by the Finance Department of Hermosa Beach City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Table of Contents i Page INTRODUCTORY SECTION (UNAUDITED) Letter of Transmittal ................................................................................................................................................. v Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ........................................................................................................ xi Organizational Chart ................................................................................................................................................. xii Principal Officials of the City of Hermosa Beach .................................................................................................... xiii FINANCIAL SECTION Independent Auditors’ Report on Financial Statements ........................................................................................... 1 Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ........................................................................ 5 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................ 7 Basic Financial Statements: Government – Wide Financial Statements: Statement of Net Position ................................................................................................................................... 21 Statement of Activities ....................................................................................................................................... 23 Fund Financial Statements: Governmental Fund Financial Statements: Balance Sheet ............................................................................................................................................... 30 Reconciliation of the Governmental Funds Balance Sheet to the Government–Wide Statement of Net Position ............................................................................ 31 Statement of Revenues, Expenditures and Changes in Fund Balances .............................................................................................................. 32 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government–Wide Statement of Activities .......................................................................................................................... 33 Proprietary Fund Financial Statements: Statement of Net Position ............................................................................................................................ 38 Statement of Revenues, Expenses and Changes in Net Position ................................................................. 39 Statement of Cash Flows ............................................................................................................................. 40 Fiduciary Fund Financial Statements: Statement of Fiduciary Net Position ............................................................................................................ 44 Index to Notes to the Basic Financial Statements ................................................................................................ 45 Notes to the Basic Financial Statements ............................................................................................................... 47 City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Table of Contents (Continued) ii Page FINANCIAL SECTION (Continued) Required Supplementary Information: Budgetary Comparison Schedule – General Fund .......................................................................................................... 92 Budgetary Comparison Schedule – Sewer Special Revenue Fund ................................................................................. 93 Notes to the Budgetary Comparison Schedule ................................................................................................................ 94 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios ......................................... 95 Schedule of the City's Contributions ............................................................................................................................... 98 Schedule of Funding Progress – Other Postemployment Benefits ................................................................................ 102 Supplementary Information: Nonmajor Governmental Funds: Combining Balance Sheet ............................................................................................................................... 108 Combining Statement of Revenues, Expenditures and Changes in Fund Balances ........................................ 114 Schedule of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds: Lighting and Landscaping District ..................................................................................................... 120 State Gas Tax ..................................................................................................................................... 121 AB 939 ............................................................................................................................................... 122 Prop A Open Space ............................................................................................................................ 123 Tyco .................................................................................................................................................... 124 Tyco Tidelands ................................................................................................................................... 125 Parks/Recreation Facilities Tax .......................................................................................................... 126 Bayview Drive Administrative Expense ............................................................................................ 127 Lower Pier Administrative Expense ................................................................................................... 128 Myrtle District Administrative Expense ............................................................................................. 129 Loma District Administrative Expense .............................................................................................. 130 Beach Drive Assessment District Administrative Expense ................................................................ 131 Proposition “A” Transit ...................................................................................................................... 132 Proposition “C” ................................................................................................................................. 133 Measure “R” ....................................................................................................................................... 134 Air Quality Management District ....................................................................................................... 135 Supplemental Law Enforcement Services .......................................................................................... 136 Asset Seizure and Forfeiture Fund ..................................................................................................... 137 Fire Protection .................................................................................................................................... 138 Artesia Boulevard Relinquishment .................................................................................................... 139 Grants ................................................................................................................................................. 140 City of Hermosa Beach Comprehensive Annual Financial Report For the Year Ended June 30, 2015 Table of Contents (Continued) iii Page Supplementary Information (Continued): Internal Service Funds: Combining Statement of Net Position ............................................................................................................. 142 Combining Statement of Revenues, Expenses and Changes in Net Position .................................................. 143 Combining Statement of Cash Flows .............................................................................................................. 144 Fiduciary Fund Financial Statements: Combining Statement of Fiduciary Net Position ............................................................................................. 146 Combining Statement of Changes in Assets and Liabilities ........................................................................... 148 STATISTICAL SECTION (Unaudited) Net Position by Component ......................................................................................................................................... 150 Changes in Net Position ............................................................................................................................................... 152 Governmental Activities Tax Revenues By Source ..................................................................................................... 156 Fund Balances of Governmental Funds ....................................................................................................................... 158 Changes in Fund Balances of Governmental Funds ..................................................................................................... 160 General Government Tax Revenues By Source ........................................................................................................... 162 Assessed Value and Estimated Actual Value of Taxable Property .............................................................................. 163 Direct and Overlapping Property Tax Rates ................................................................................................................ 164 Principal Property Taxpayers ....................................................................................................................................... 165 Property Tax Levies and Collections ........................................................................................................................... 166 Construction Value and Property Value ...................................................................................................................... 167 Direct and Overlapping Debt ....................................................................................................................................... 169 Legal Debt Margin Information ................................................................................................................................... 170 Demographic and Economic Statistics ......................................................................................................................... 172 Principal Employers ..................................................................................................................................................... 173 Full-Time and Part-Time City Employees by Function ............................................................................................... 174 Operating Indicators by Function ................................................................................................................................. 175 Capital Asset Statistics by Function ............................................................................................................................. 176 iv This page intentionally left blank. v December 28, 2015 Honorable Mayor and Members of the City Council and Citizens of Hermosa Beach, California: 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, 2015. The report is intended to update readers on the status of the City’s financial position and results of operations for the past fiscal year. Management's representations concerning the finances of the City of Hermosa Beach are contained herein. Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hermosa Beach has established an internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hermosa Beach’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City of Hermosa Beach’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects. Audit The City of Hermosa Beach’s financial statements have been audited by Pun & McGeady, LLP, 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, 2015, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Hermosa Beach’s financial statements for the fiscal year ended June 30, 2015, are fairly presented in conformity with GAAP. The independent auditors’ 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 1.4 square miles and serves a population of 19,772, according to the State’s latest population estimate. However as a beach city, the City experiences a high visitor population and the associated costs. Due to this high visitor population, the City operates in many ways like a larger city. During the 2014-15 fiscal year, beach attendance ranged from a low of 77,600 in December 2014 to a high of 1,596,605 in July 2014, according to the Los Angeles County Fire Department, Lifeguard Division. City of Hermosa Beach Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 vi 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. Council members 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. The City 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 Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Utility Underground Districts are included in the City's financial statements as required by governmental accounting standards. Summary information from the May 2015 Profile of the City of Hermosa Beach, produced in 2015 by the Southern California Association of Governments (SCAG), is shown below along with selected information from the U.S. Census. The SCAG report is produced every two years, with the next release in May 2017. 2014 STATISTICAL SUMMARY 2012 STATISTICAL SUMMARY Hermosa Beach Hermosa Beach Median  Age 38.6 38 Non‐Hispanic White 79.5% 80.3% Hispanic 8.8% 8.5% Non‐Hispanic Asian 6.0% 5.9% Non‐Hispanic Black 1.2% 1.2% Non‐Hispanic  American Indian 0.2% 0.1% Non‐Hispanic All Other 4.3% 4.1% Homeownership Rate 44.7% 44.7% Average Household   Size 2.1 2 Median  Household   Income $95,050 $93,017 Mean  Travel  Time  to  Work 33.3 minutes 32 minutes Category SCAG  PROFILE OF THE CITY OF HERMOSA BEACH vii The U.S. Census Bureau Quick Facts are as of October 2015. Further data regarding the City may be found in the Statistical Section. The annual budget serves as the foundation for the City of Hermosa Beach’s financial planning and control and is based on the Strategic Plan adopted by the City Council. 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. At least one public budget workshop is held prior to the required public hearing, with adoption required no later than June 30th. If the City Council fails to adopt a budget by that date, the budget submitted by the City Manager, as amended by the City Council, if applicable, is the appropriated budget except for capital improvement outlays. The appropriated budget is prepared by fund and department (e.g., Police Department). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. The City Council receives monthly revenue and expenditure reports during the year and a midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budget-to-actual comparisons are provided in this CAFR for each individual governmental fund for which an appropriated annual budget has been adopted. For the General Fund and major governmental funds with appropriated annual budgets, this comparison is presented as Required Supplementary Information on pages 92-93. For non-major governmental funds with appropriated annual budgets, this comparison is presented as Supplementary Information, after the Notes to the Financial Statements. 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. Category Hermosa Beach California Category Hermosa Beach California Persons under 5 years,  2010 5.1% 6.8% Per capita money  income in the past 12  months (2011 dollars),  2009‐2013 $69,606 $29,527 Persons under 18  years, 2010 15.9% 25.0% Persons below poverty  level, 2009‐2013 3.4% 15.9% Persons 65 years and  over, 2010 9.0% 11.4% Median  value of   owner‐occupied  housing units, 2009‐ 2013 $1,000,001 $366,400 Female persons, 2010 47.3% 50.3% Housing units in multi ‐ unit structures, 2009‐ 2013 48.4% 31.0% Bachelor's Degree  or  higher, persons age   25+, 2009‐2013 70.9% 30.7% High School graduate  or higher, persons age   25+, 2009‐2013 99.0% 81.2% U.S. CENSUS BUREAU  QUICK FACTS viii Local economy. Hermosa Beach is a “bedroom community” as evidenced by a household count of +10,000 and an in-city business count of under 1,000 (excluding apartments and home occupations) Hermosa Beach had growth of 6.2% in secured and unsecured assessed valuation, as compared to 5.6% for Los Angeles County. The 6.2% growth was the 12th highest of 88 cities in Los Angeles County. Median home prices in Hermosa Beach as of June 2015 were $1,361,000, compared to $525,000 for Los Angeles County. The Hermosa Beach median home price for June 2014 was $1,246,000, compared to $450,250 for Los Angeles County. The average median home price for Hermosa Beach for fiscal year 2014-15 was $1,455,550 and $1,159,125 for fiscal year 2013-14. Home values adjacent to the beach increased for the fifth year in a row after declining 2009-2011. As a beach city, the three highest occupations are management, sales, and administrative support, 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 3.1%, compared with 7.4% for Los Angeles County, and 6.2% for California as of June 2015. General Fund Secured property taxes increased 7% in 2014-15, consistent with growth in assessed values. Property adjacent to the beach has held its value better and grown faster as compared to property in the inland areas. Sales tax receipts for 2014-15 are up 4%. Transient occupancy tax (the tax on hotel stays) grew 7% over 2013-14. Receipts of more than $2.3 million are the highest level ever. Average occupancy for 2014-15 was 81% for Hermosa Beach compared to last year’s rate of 81.1%. Hermosa Beach has eight hotels and one youth hostel, with rooms capacity ranging from 17 rooms to 106 rooms. Utility user tax (UUT) revenue remained the same as last year at $2.4 million and is approximately 10% less than the highest year of 2006-07. Part of this decline is related to a change by AT&T in taxation of their cellular bundled services and loss of prepaid cellular tax revenue as well as a 3% decline in electricity tax revenue. The utility user tax is the third highest tax source of income for the City. Since the City was successful in obtaining voter approval (72%) for adoption of a modern UUT ordinance in November 2007, revenue is protected as technology changes occur. The ballot measure was intended to be revenue-neutral, in that the video and telecom rate was reduced from 6% to 5.5% to offset any new revenue received from new technology in those areas. The UUT as a source of revenue has been very reliable. Accounting Changes. The City implemented Government Accounting Standards Board (GASB) Statement No 68, Accounting and Financial Reporting for Pensions, effective July 1, 2014. Net pension liabilities of $36,303,639 were recorded and the unrestricted net position was reduced accordingly. The change in accounting standards impacted the government-wide financial statement, notes, and required supplemental information only. National/State Economy. The Legislative Analyst’s Office reports that the State budget is better prepared for an economic downturn than it has been at any point in decades, given that the main economic scenario shows 2016-17 ending with reserves of $11.5 billion. That is compared to $4.5 billion reported in last year’s CAFR as the ending estimate for 2015-16. Beacon Economics reports several positive State trends including non-farm job growth outpacing the nation for 40 consecutive months and stronger home sales of 9.8% over the past year. Like Hermosa Beach however, the State is behind on investment in infrastructure, which is a challenge that must be addressed. California Public Employees Retirement System (CalPERS). The preliminary CalPERS investment return as of June 2015 was 2.4%, however over the past three and five years, the Fund has earned returns of 10.9 and 10.7 percent respectively, preforming better than the benchmarks for the first time since 2007. The 20 year investment return stands at 7.8%. The CalPERS Board adopted a funding risk mitigation policy that will incrementally lower the discount rate (assumed rate of return) in years of good investment returns. This will be done gradually (by a minimum of .05 percentage points to a maximum of .25 percentage points when investment returns outperform the existing discount rate of 7.5% by at least four percentage points). This will work to offset increased employer contribution rates that would otherwise increase when the discount rate is lowered and help pay down CalPERS unfunded liability. This adjustment is in large part due to the aging workforce. A decade ago the ratio of active to retired workers was 2 to 1, it is now 1.6 to 1 and the trend downward will likely continue. Historical Note ix The City created a Retirement Stabilization Fund in 2003-04 to plan for anticipated rate increases. This amount now appears as part of the “assigned” balance in the General Fund in the amount of $1,000,000. Long-term financial planning. The City has adopted comprehensive financial policies addressing a range of items including accounting and reporting, internal controls, budget, revenue, debt service and investments. The policies are published in the budget and reviewed annually. The City Council’s adopted financial policies relating to long-term financial planning for specific funds are as follows: Insurance Fund—Goal of $3,000,000 in net assets for aberrations in claims reserves and catastrophic losses. Equipment Replacement Fund—Goal of net assets equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Contingency—Goal equal to 16% of the General Fund appropriations for economic uncertainties, unforeseen emergencies. Compensated Absences—Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time. The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, Capital Improvement Fund and to add to Contingency Funds. The transfer for 2014-15 was $2,610,442, per Council direction at Midyear Budget Review, to the Capital Improvement Fund. The City Council makes changes as necessary to the year- end transfer, depending on the equity in the funds or based on other needs. In 2012-13 the City Council set aside $2.5 million of unrestricted net position in the Insurance Internal Service Fund, in addition to $ 3.5 million recorded as a liability, for the costs of the MacPherson Oil lawsuit settlement and proposed new oil project which are discussed in detail in the Notes to the Basic Financial Statements (Note 14). After the March 3, 2015 election when residents voted not to lift the ban on oil drilling, the City used the previously set aside $6 million to pay E & B Natural Resources a portion of the $17.5 settlement agreement. The remaining $11.5 million was recorded as a liability at year end in the Insurance Fund and immediately paid off in August 2015 after lease revenue bonds were issued. The City’s long term financial planning focuses on the Five Year Financial Forecast and Capital Improvement Plan, which is produced as part of the annual budget. In May 2015, staff presented the Fiscal Health Model from the International City/County Management Association’s (ICMA) Center for Performance Based Budgeting. The model is a tool that may be used to evaluate various scenarios to assist in gauging the fiscal health of the City. Since the City is built out, the Capital Improvement Plan primarily addresses maintenance, repair and upgrading of facilities and infrastructure, particularly streets, storm drains and sewers. Primary projects coming up, (other than street and sewer improvements, which occur every year) are design of improvements for the Pacific Coast Highway/Aviation corridor, South Park Playground improvements, municipal pier structural repairs, and citywide energy conservation upgrades. Cash management policies and practices. Temporarily idle cash was invested during the year in obligations of the U.S. Treasury, corporate notes, certificates of deposit, the State Treasurer's investment pool and the Los Angeles County pool. The average maturity was 51 months, with an average weighted yield on investments of .85% Investment income includes changes in the fair value of investments. Changes in fair value during the current year, however, do not necessarily represent trends that will continue nor do such amounts necessarily become realized, since the City intends to hold the investments to maturity. Risk management. The City is self-insured up to $250,000 for liability claims. Excess coverage up to $20 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 the City. x The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA and the California State Association of Counties (CSAC). Together, these two joint powers authorities provide a shared limit of coverage up to a maximum of $200 million. Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the City Manager (since the Human Resources Director/Risk Manager position was cut). Additional information on the City’s risk management activity can be found in Note 8 of the Notes to the Basic Financial Statements. Pension and other post-employment benefits. The City provides pension benefits to safety and non-safety employees through the California Public Employees Retirement System (CalPERS). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The City was successful in negotiating two tier rates for new employees in all bargaining units beginning in 2011- 12. As of June 30, 2015, the City has twenty (20) Tier 2 employees. With the State’s pension reform implemented 1/1/13, the City now has three tiers. As of 6/30/15 there are thirty-three (33) employees in Tier 3. The City has paid employee contributions as a negotiated benefit for many years however in 2012-13 the City negotiated for employees to begin paying the entire share of the employee contribution over three years with an offsetting increase in salaries, which will be achieved by 2014-15. All of these changes will reduce pension costs over time. City employer contributions are actuarially determined on an annual basis. The City also provides post-employment health care benefits for certain retirees. As of the end of the current fiscal year, there were 59 retirees receiving these benefits. The City established a trust with an outside party to administer these funds in July 2007. The City is contributing the annual required contribution for all employees as determined by an actuarial study in the manner as is done for retirement contributions to CalPERS. Additional information on the City of Hermosa Beach’s pension arrangements and other post- employment benefits can be found in Note 9 and 10 in the Notes to the Basic Financial Statements. Awards and Acknowledgements The Government Finance Officers Association (GFOA) awarded a 2014 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, 2014. This was the twenty-fifth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a report must be published that satisfies both GAAP and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. We believe that our current CAFR continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate. The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to the City Manager and all of the departments, including the City Clerk and City Treasurer, and to our auditors, Pun & McGeady, LLP, for their assistance and support in preparation of the report. Credit also must be given to the Mayor and the City Council for their continuing support for maintaining the highest standards of professionalism in the management of the City of Hermosa Beach’s finances. Respectfully submitted, Viki Copeland Finance Director xi ELECTORATE CITY COUNCIL PLANNING COMMISSION PUBLIC WORKS COMMISSION CIVIL SERVICE BOARD BOARD OF APPEALS PARKS & RECREATION ADVISORY COMMISSION CITY TREASURER CITY MANAGER COMMUNITY RESOURCES HUMAN RESOURCES/ RISK MANAGEMENT FINANCE COMMUNITY DEVELOPMENTFIREPOLICEPUBLIC WORKS CITY ATTORNEY Parks & Recreation Facilities Management Cultural Recreational Athletic Programming Special Events ENGINEERING Plan Checks Field Inspection Code Enforcement Encroachments Traffic Engineering Traffic Signals Traffic Signage Speed Survey Capital Improvement Program MAINTENANCE Landscaping Irrigation Streets Sewers Storm Drains Building Maint. Vehicle Maint. Enforcement Investigation Detention Emergency Dispatch Reserves Records Bureau Crossing Guard Special Investigations COMMUNITY SERVICES Parking Enforcement Animal Control Meter Maintenance Fire Suppression Fire Prevention Rescue Public Education Paramedics Disaster Preparedness Reserves Plan Checking Ambulance Transportation Investigations HUMAN RESOURCES Recruitment Training Labor Relations RISK MANAGEMENT Workers’ Comp Liability Claims City Insurance Secretarial Support FINANCE ADMINISTRATION Budget Accounting Payroll FINANCE CASHIER Citation Processing Animal Licenses Parking Permits Business License Bus Passes BUILDING AND SAFETY Plan Checking Field Inspection Code Enforcement PLANNING Current Planning Advanced Planning Sustainability Planning Environmental Assessment Land Use Entitlements Enforcement CITY CLERK CITY PROSECUTOR EMERGENCY PREPAREDNESS ADVISORY COMMISSION CITY OF HERMOSA BEACH ORGANIZATIONAL CHART xii PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2015 Elected and Administrative Officials City Council Nanette Barragan Mayor Carolyn Petty Mayor Pro Tempore Michael Di Virgilio Councilmember Hany Fangary Councilmember Peter Tucker Councilmember Other Elected Officials Karen Nowicki City Treasurer Elaine Doerfling City Clerk Administrative Officials Tom Bakaly City Manager Robert Blackwood Interim Assistant to the City Manager Viki Copeland Finance Director Ken Robertson Community Development Director Sharon Papa Police Chief Andrew Brozyna Public Works Director David Lantzer Fire Chief xiii This page intentionally left blank. xiv 200 East Sandpointe Avenue Suite 600 Santa Ana, California 92707 Phone: (949) 777-8800 Fax: (949) 777-8850 www.pm-llp.com INDEPENDENT AUDITORS’ REPORT To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Report on Financial Statements We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (the “City”), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Page 2 2 Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective 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, 2015, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Emphasis of Matter Implementation of GASB Statement No. 68 and 71 As discussed in Note 1 to the basic financial statements, the City implemented Governmental Accounting Standards Board (“GASB”) Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27 and GASB Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. The adoption of these standards required retrospective application of previously reported net position and reclassification of certain accounts as of July 1, 2014 as described in Note 16 to the basic financial statements. In addition, net pension liability is reported in the Statement of Net Position in the amount of $36,303,639 as of the measurement date. Net pension liability is calculated by actuaries using estimates and actuarial techniques from an actuarial valuation as of June 30, 2013 which was then rolled-forward by the actuaries to June 30, 2014, the measurement date for California Public Employee Retirement System (“CalPERS”) plans. Our opinion is not modified with respect to this matter. Settlements As discussed in Note 14 to the basic financial statements, the City entered into a settlement agreement with Macpherson to end the litigation. As of a result of not passing the ballot Measure O, the City is obligated to pay E&B Natural Resources in the amount of $17.5 million. $6 million was paid during the year ended June 30, 2015 and the remaining amount of $11.5 million is outstanding and reported in the Insurance Internal Insurance Fund at June 30, 2015. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedule-General Fund, Budgetary Comparison Schedule-Sewer Special Revenue Fund, Schedule of Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions, and the Schedules of Funding Progress-Other Postemployment Benefits on pages 7 to 16 and 92 to 102, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Page 3 3 Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules, and Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and Budgetary Comparison Schedules are fairly stated in all material respects in relation to the basic financial statements as a whole. The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 28, 2015, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Santa Ana, California December 28, 2015 4 This page intentionally left blank. 200 East Sandpointe Avenue Suite 600 Santa Ana, California 92707 Phone: (949) 777-8800 Fax: (949) 777-8850 www.pm-llp.com REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Independent Auditors’ Report To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (the “City”), as of and for the year ended June 30, 2015, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued our report thereon dated December 28, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’s internal control over financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. To the Honorable Mayor and Members of the City Council of the City of Hermosa Beach Hermosa Beach, California Page 2 6 Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Santa Ana, California December 28, 2015 7 Management's Discussion and Analysis As management of the City of Hermosa Beach, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2015. 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 - x of this report. Financial Highlights • Beginning with the fiscal year ended June 30, 2015, the City implemented GASB Statement No. 68, Accounting and Financial Reporting for Pensions which requires the City to include its net pension liability in the government-wide financial statements. Similar to the City’s long-term debt, the net pension liability is payable over an extended time horizon and does not represent a claim on current financial resources. For more information on the implementation of GASB Statement No. 68, please refer to the Government-wide Fund Analysis below and the note titled “Accounting Changes” (Note 1.O) in the Notes to the Basic Financial Statements. • The assets and deferred outflows of resources of the City of Hermosa Beach exceeded its liabilities and deferred inflows of resources at the close of the last fiscal year by $46,052,668 (net position). Excluding the $36,303,639 net pension liability, $11,434,602 represents unrestricted net position and may be used to meet the government's ongoing obligations. • The City’s net position, with the beginning balance restated to reflect the net pension liability as of July 1, 2014, increased by $8,453,152, prior to the recording of the oil liability settlement, after which, it decreased to ($5,546,848). See Note 14 on page 87. • As of June 30, 2015, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $22, 320,452, an increase of $6,866,615 in comparison with the prior year. This increase due to a 4.9% increase in revenue and $3 million transfer to the Sewer Fund from the Insurance Fund for the upcoming Sewer Rehabilitation Project.  At the end of the current fiscal year, the City of Hermosa Beach’s governmental fund balances of $22,320,452 are comprised of nonspendable funds; $19,444, restricted; $4,188,404, committed; $460,616; and assigned; $17,651,988; to indicate that funds are not available for new spending. Although funds are shown in the committed or assigned category, the City Council still does have discretion over the use of these funds and may change the committed or assigned use. Under that scenario, approximately 79%, or $17,651,988 of the $22,320,452 in funds could be redirected at the discretion of the City Council. See Note 11 on page 83.  After the council approved transfer of $2,610,442 into the Capital Improvement Fund, the committed and assigned fund balance in the General Fund was $10,033,940 or 33% of total General Fund expenditures. • The City of Hermosa Beach had no debt as of the end of fiscal year 2014-15, however the City subsequently issued lease revenue bonds of $11.6 million in order to fund the balance of the oil settlement agreement with E&B Natural Resources. See Notes 14 and 15 on pages 87-89. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Hermosa Beach’s basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other supplementary information in addition to the basic financial statements themselves. Government-wide financial statements are designed to provide readers with a broad overview of the City of Hermosa Beach’s finances, in a manner similar to a private-sector business. 8 The Statement of Net Position presents information on all of the City of Hermosa Beach’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating. The Statement of Activities presents information showing how the government's net positions changed during the most recent fiscal year. All changes in net positions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave). The governmental activities of the City of Hermosa Beach include legislative and legal, general government, public safety, public works, community development, and culture and recreation. The government-wide financial statements include not only the City of Hermosa Beach itself, but also the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive and Beach Drive Utility Underground Districts. Although these entities are legally separate, they function for all practical purposes as part of the City, and therefore have been included as an integral part of the primary government. The Government-Wide Financial Statements can be found on pages 21- 24 of this report. Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hermosa Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements. Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Hermosa Beach maintains twenty-four individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the funds below, which are considered to be a major fund: General Fund Sewer Special Revenue Fund Capital Improvement Capital Projects Fund 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 corresponding total for all governmental and enterprise funds combined. Data from the other twenty-one governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these nonmajor governmental funds is provided in the form of combining statements in the Supplementary Information section in this report. 9 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 and Sewer Fund in the Required Supplementary Information section to demonstrate compliance with this budget. The basic governmental fund financial statements can be found on pages 30–33 of this report. Proprietary funds. The City of Hermosa Beach maintains one type of proprietary fund. Internal service funds are used to accumulate and allocate costs internally among the City of Hermosa Beach’s various functions. The City of Hermosa Beach uses internal service funds to account for its fleet of vehicles, information systems and equipment, and risk management/insurance activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements. Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report. The basic proprietary fund financial statements can be found on pages 38-40 of this report. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Hermosa Beach’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Funds of the Lower Pier Avenue, Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Undergrounding Districts are held as fiduciary funds. The fiduciary fund financial statements can be found on page 43 of this report. Notes to the basic 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 basic financial statements can be found on pages 45-89 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 major funds. Required supplementary information can be found on pages 92-102 of this report. The combining statements referred to earlier in connection with nonmajor 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 105-148 of this report. Government-wide Financial Analysis As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2015, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $46,052,668. Without the net pension liability, the net position would be $82,356,307. The City implemented GASB 68, Accounting and Financial Reporting for Pensions for the June 30, 2015 financial statements. The beginning balance of the 2014-15 net position was restated to reflect the impact of the implementation. According to the Governmental Finance Officers Association (GFOA) the underlying factual situation has not changed. Standard and Poor’s (the rating agency who rated the City’s bonds) indicated that the new standards will lead to more conservative liability estimates and provide some additional disclosure. They will continue to focus on commitment to funding, investment performance, trend analysis, affordability, and maintaining plan sustainability. The Annual Required Contribution (ARC) will continue to be reported as Actuarially Determined Contribution. Standard and Poor’s believes this is an easily recognizable an understandable measure for governments. They currently estimate with what frequency governments fully fund their ARC (which Hermosa Beach always does). 10 The major components of GASB No. 68 that affect the Statement of Net Position for Government-wide are:  Deferred Outflows of Resources - Represents the deferred pension contribution, which is equal to the total amount of the 2014-15 contributions. The contributions are deferred to 2015-16 because the net pension liability balance is one year in arrears.  Net Pension Liabilities (recorded in Long-Term Liabilities) - Represents the actuarially valued liabilities for the Police, Fire, and Miscellaneous Plans as of June 30, 2014.  Deferred Inflows of Resources - Represents the difference between the expected and actual earnings on investments. The new accounting standard requires that differences between projected and actual investment returns be amortized on a straight-line basis over five years. *See Note 16 for Prior Period Adjustment. This amount represents the Net Pension Liability of ($44,066,303) and Deferred Outflow of Resources of $3,373,029. The largest portion of the City of Hermosa Beach’s net position, $66,733,301, reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. A portion of the City of Hermosa Beach’s net position $4,188,404 represents resources that are subject to external restrictions on how they may be used. 2015 2014 Current and Other Assets 43,074$ 44,710$ Noncurrent Assets 66,824 64,951 Total Assets 109,898 109,661 Deferred Outflows of Resources 4,480 - Current Liabilities 18,084 7,163 Noncurrent Liabilities: Net Pension Liability 36,304 - Long-term Liabilities- Other 5,915 10,205 Total Liabilities 60,303 17,368 Deferred Inflows of Resources 8,022 - Net Position: 46,053 92,293 Investment in Capital Assets 66,733 64,828 Restricted 4,189 4,477 Unrestricted (24,869) 22,988 Total Net Position 46,053 92,293 Impact of Restatement for GASB 68* - (40,693) Restated Net Position 46,053$ 51,600$ Net Position June 30, 2015 (dollars in thousands) Governmental Activities 11 Compliance with GASB 68 and 71 requires that the City’s net pension liability be recorded on the Statement of Net Position, which reduces unrestricted net position and created a negative unrestricted net position or deficit of ($24,869,037). Excluding the $36,303,639 net pension liability, $11,434,602 is available to meet the City’s ongoing obligations to residents. At June 30, 2015, the City is able to report positive balances in all categories of net position for the government as a whole except for unrestricted due to the implementation of GASB 68 and the inclusion of the net pension liability, which will likely remain a long-term liability for several decades. The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ending June 30, 2015 and June 30, 2014. Governmental Activities. Governmental activities increased the City of Hermosa Beach’s net position by $8,453,152, prior to the oil liability settlement. After the recording of the liability settlement, the change in net position is ($5,546,848). Significant elements of this change are as follows: *See Note 16 for Prior Period Adjustment. This amount represents the Net Pension Liability of ($44,066,303) and Deferred Outflow of Resources of $3,373,029. 2015 2014 Revenues: Program Revenues: Charges For Services 12,268$ 11,740$ Operating Grants and Contributions 984 1,106 Capital Grants and Contributions 329 261 General Revenues: Property Taxes 13,740 12,910 Other Taxes 9,948 9,578 Grants and Contributions Not Restricted to Specific Programs 1,246 1,223 Other 1,000 763 Total Revenues 39,515 37,581 Expenses: Legislative and Legal 1,293 1,076 General Government 3,078 2,828 Public Safety 16,737 16,856 Community Development 1,711 1,520 Culture and Recreation 1,257 1,068 Public Works 6,986 7,421 Total Expenses 31,062 30,769 Change in Net Position before Special Item 8,453 - Settlement (Note 14) (14,000) - Increase (Decrease) in Net Position (5,547) 6,812 Net Position - Be g inning, as restated for 7/1/2014 51,600 85,481 Net Position- Ending 46,053 92,293 Impact of Restatement for GASB 68* - (40,693) Adjusted Net Postion, Ending 46,053$ 51,600$ Governmental Activities (dollars in thousands) June 30, 2015 Changes in Net Positions 12 Revenue for Governmental Activities Charges for services increased $528,669 or 4.5%. An increase in building activities generated more building permits and plan check fees. Demand parking rates were implemented for part of the year as a test program. Property taxes revenue increased $829,222 or 6.4%. Property values at the beach continue to increase at a faster pace than other areas. Sales Tax revenue increased $114,594 or 4.3%. Transient Occupancy Tax (TOT) revenue increased $145,330 or 6.6%. Since reported occupancy rates for 2014-15 were 81% compared to 81.1% for 2013-14, the continued increased in TOT revenue is most likely due to increased room rates, which are not reported to the City. Utility User Tax revenue was flat. Revenue from other taxes not listed above increased by $111,123 or approximately 4.9%, primarily due to increases in real property transfer taxes and business licenses. Revenues: 2015 2014 Property Taxes 13,739,648$ 12,910,426$ Charges for Services 12,268,168 11,739,499 Other Taxes 4,737,370 4,480,917 Sales Taxes 2,768,225 2,653,631 Utility Users Taxes 2,442,575 2,443,285 Grants & Contributions not Restricted to Specific Programs 1,246,419 1,222,808 Operating Grants & Contributions 983,628 1,106,254 Miscellanous 489,740 621,480 Capital Grants & Contributions 328,649 260,844 Investment Earnings 510,668 141,794 Total Revenues 39,515,090$ 37,580,938$ 13 Expenses for Governmental Activities Expenses for Governmental Activities increased by $159,055. Legislative and Legal expenses increased $217,003 or 20.2%. The increase is primarily due to interest paid on the oil settlement and the increased need for legal opinions from the City Attorney on matters including E&B Natural Resources and sewer fee. General Government expenses increased by $250,149 or 8.8%. The increase is primarily due to personnel costs related to the conversion of two Management Analyst positions to full-time permanent (one of which was added at mid-year), the hiring of a full-time/temporary Environmental Coordinator, and additional part-time/temporary staff in the Finance Department. Additionally, there was an increase in contract services related to priority based budgeting and the fiscal health diagnostic tool. Public Safety expenses decreased by ($119,122) or 0.7%. Community Development expenses increased by $190,931 12.6%. The increase is primarily due to expenses related to the General and Coastal Plan update and an increase in contract services for plan checks. Culture and Recreation expenses increased by $188,923 or 17.7%. The increase is primarily due to increased personnel costs over 2013-14 due to position vacancies in the prior year. Public Works expenses decreased by ($434,962) or -5.9%. The decrease is primarily from a reduction in depreciation expenses due to several capital assets being fully depreciated in prior year. See Note 6 for allocation of depreciation expense. Without depreciation, expenditures would be up 6.7% primarily due to the addition of a part-time office assistant and increased use of engineering consulting services for technical and staff support. 14 Financial Analysis of the Government’s Funds As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance- related legal requirements. Governmental funds. The focus of the City of Hermosa Beach’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City of Hermosa Beach’s financing requirements. These funds are accounted for by using the modified accrual basis of accounting. Types of governmental funds reported by the City include the General Fund, Special Revenue funds, and Capital Projects funds. As of the end of the current fiscal year, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $22,320,452, an increase of $6,866,615, in comparison with the prior fiscal year. See Note 11 for more information. The total fund balances of the governmental funds consist of the following:  Non-spendable fund balance of $19,444 represents prepaid items.  Restricted fund balance of $4,188,404, which have restrictions imposed by external parties or enabling legislation. Funds in this category include Lighting District Funds, Proposition A and C Transportation Funds, Asset Forfeiture Funds and Supplemental Law Enforcement Funds (COPS).  Committed fund balance of $ 460,616 which have reserves for capital outlay and future renovations.  Assigned fund balance of $17,651,988 which includes the amounts to be used for specific purposes of the City, but do not meet the criteria to be classified as restricted or committed. Funds in this category include Contingency funds (“rainy day” funds), Retirement Stabilization funds, Compensated Absences funds, Capital Projects, Capital Improvements, and Sewer and Storm drain funds. The General fund, Sewer Special Revenue Fund, and Capital Improvement Capital Projects Fund qualified as major funds under the GASB Statement No. 34, Basic Financial Statements – and Management Discussion and Analysis – for State and Local Governments, reporting criteria. The General Fund balance increased in fiscal year 2014-15 by $2,408,686. This increase is a result of the addition of funds to the Contingency balance to meet our goal of 16% of operating appropriations, $1,000,000 set aside for oil debt service payments, $500,000 set aside for unspecified contingencies, and due to funds set aside for capital improvement projects not completed in 14-15. Overall revenue increased by 4.6%. The increase is a result of the following: additional property tax revenue of 6.4%; additional sales tax revenue of 4.3%; increased transient occupancy tax revenue of 6.6%; a decrease in licenses and permits of 5.7%; service charge increases of 9.9%; fines and forfeitures decrease of 5.4%. General Fund expenditures show an increase of 6.1%. The increase is primarily due to Public Safety and capital projects including: City Facilities Assessment, Community Center General Improvement Plan, Street Improvements, Fire Traffic Signal, and South Park. As previously noted, $2,610,442 was transferred at year end to the Capital Improvement Fund. 15 General Fund Budgetary Highlights The final amended budget for revenue other than transfers is 2% more than the original budget. Actual revenue was higher than the final budget by $1,079,481 or 3% for the following reasons:  Tax revenue collections were 1.9% higher than budget primarily due to conservative estimates for property tax, transient occupancy tax, and sales tax.  Licenses and Permits were 15% higher due to the unpredictability of estimates for building permits.  Intergovernmental/State revenue was 106% higher due to the repayment by the State of unfunded mandates prior to 2004.  Current Service Charges were up 7.5% primarily due to increased enrollment for recreation classes and programs and increased meter revenue. The final amended budget for appropriations other than Transfers Out is more than the original budget by 4%. The increase was primarily due to funds reappropriated from 13-14 for ongoing capital improvement projects. Actual expenditures other than Transfers Out were less than the final appropriations by 11% due primarily due to salary and benefits savings from personnel vacancies and capital improvement projects not completed in 2014-15. Capital Asset and Debt Administration Capital assets. The City of Hermosa Beach’s net investment in capital assets for its governmental as of June 30, 2015, amounts to $66,733,301 (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 2014-15 fiscal year was approximately 2.9%. Major capital asset events during the fiscal year included the following: Governmental Activities  Construction in progress on South Park was $400,531 at the end of the fiscal year.  Completion of Citywide Street Improvements of $932,560.  Construction in progress for PCH Aviation Beautification was $423,714 at the end of the fiscal year.  Citywide Energy Conservation upgrades of $131,494.  Completion of Municipal Pier Structural Repairs of $176,428.  Purchase of 8 vehicles including an Ambulance. Additional information on the City of Hermosa Beach’s capital assets can be found in Note 6 on pages 62-63 of this report. 16 Insurance Fund As previously stated, the City had a $17.5 million oil settlement agreement with E& B Natural Resources, of which $6 million was paid from previously set aside funds. This resulted in the need to record a liability of $11.5 million in the Insurance Fund at the end of 2014-15, creating a temporary deficit balance of $6.9 million. The City issued bonds at the beginning of the 2015-16 fiscal year, which resolved the deficit fund balance. See Notes 14 and 15 for more information. The balance without the $11.5 million liability is $4,553,996 due to the decrease in claims liabilities for worker’s compensation and liability claims. Economic Factors and Next Year's Budgets and Rates  The 2015-16 Budget adds close to $250,000 to the Contingency in the General Fund, which is 16% of operating expenditures and in line with the Council goal for a “Financially Sound City Government”.  $2 million is committed in the General Fund as a contingency for potential debt service related to oil drilling issues.  $1,250,000 is committed in the General Fund for unspecified contingencies.  As of October 27, 2015 City has one year agreements with all six employee bargaining units for 2015-16. See Note 15 C.  Overall retirement costs increase 8% on average for the first three years of the 2016-21 Forecast due to change in actuarial assumptions and then decline by 4% in 2018-19 due to the Fire Side fund payoff, 22% in 2019-20 due to Police Side Fund payoff, and 13% in 2020-21 due to the Miscellaneous Group Side Fund. The side funds were created by CalPERS for any unfunded liability that existed when the city was pooled with other cities in 2003. Revenue Trends and Assumptions The 2015-16 Budget demonstrates continuing improvement in the local economy and a balanced budget, with some added personnel, replacement of 12 vehicles, continued funding for upgrading the City’s permitting software, high performance organization training that will move the city forward toward the goals set forth in the strategic plan, and funding for $12.7 million in capital improvement projects. Added personnel include one police officer and one associate planner. Five (5) full time temporary positions, Management Analyst, Environmental Coordinator, Youth Program Coordinator, Code Enforcement Officer and Office Assistant, were converted to full time, permanent positions. Three positions were reclassified, from Senior Recreation Supervisor to Recreation Manager, Assistant City Manager to Human Resources Manager and Senior Planner to Planning Manager. Hermosa Beach continues to have ongoing revenues exceed ongoing expenses. Revenue growth of 2.8% is anticipated in the 2015-16 Budget. Property tax is estimated to increase by 5% while sales tax and utility user tax is estimated to remain flat. Significant expenditure reductions were initiated by the City Council and Staff over the last several years. It is difficult to determine the service level impacts of those cuts and that is something that is being studied. The Fiscal Health diagnostic model presented at the budget workshop will assist in achieving long-term fiscal sustainability. The strategy adopted is one where the Council slowly adds services and expenditures that are consistent with their new goals. Requests for Information This financial report is designed to provide a general overview of the City of Hermosa Beach’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 1315 Valley Drive, Hermosa Beach, CA 90254. BASIC FINANCIAL STATEMENTS 17 This page intentionally left blank. 18 GOVERNMENT-WIDE FINANCIAL STATEMENTS 19 This page intentionally left blank. 20 Primary Government Governmental Activities ASSETS Current assets: Cash and investments 40,229,962$ Accounts receivable 1,548,436 Property taxes receivable, net 204,334 Reimbursable grants receivable 496,149 Interest receivable on investments 51,135 Other receivables 233,154 Other assets 310,386 Total current assets 43,073,556 Noncurrent assets: Net other postemployment benefit assets 91,126 Capital assets: Nondepreciable 25,291,631 Depreciable, net 41,441,670 Total capital assets, net 66,733,301 Total noncurrent assets 66,824,427 Total assets 109,897,983 DEFERRED OUTFLOWS OF RESOURCES Pension contribution made after measurement date 3,725,913 Employer's actual contributions in excess of employer's proportionate share of contributions 401,419 Adjustment due to difference in proportion 352,601 Total deferred outflows of resources 4,479,933 City of Hermosa Beach Statement of Net Position June 30, 2015 See accompanying Notes to the Basic Financial Statements. 21 Primary Government Governmental Activities LIABILITIES Current liabilities: Accounts payable and accrued liabilities 3,057,685 Accrued wages and benefits payable 939,918 Refundable deposits 315,867 Unearned revenue 42,543 Interest payable 133,867 Settlement payable 11,500,000 Workers' compensation claims payable - due within one year 686,562 General liability claims payable - due within one year 323,644 Compensated absences - due within one year 1,083,642 Total current liabilities 18,083,728 Noncurrent liabilities: Workers' compensation claims payable - due in more than one year 4,134,783 General liability claims payable - due in more than one year 564,656 Compensated absences - due in more than one year 1,216,539 Aggregate net pension liability 36,303,639 Total noncurrent liabilities 42,219,617 Total liabilities 60,303,345 DEFERRED INFLOWS OF RESOURCES Actual earnings in excess of expected earnings on pension plan investments 7,715,601 Employer's proportionate share of contributions in excess of employer's actual contributions 219,901 Adjustment due to difference in proportion 86,401 Total deferred inflows of resources 8,021,903 NET POSITION Investment in capital assets 66,733,301 Restricted for: Capital projects 608,773 Street and sewer purposes 358,907 Transportation purposes 2,270,235 Public works 49,949 Public safety 278,701 Culture and recreation 584,881 Undergrounding Districts 36,958 Total restricted 4,188,404 Unrestricted (Deficit)(24,869,037) Total net position 46,052,668$ City of Hermosa Beach Statement of Net Position (Continued) June 30, 2015 See accompanying Notes to the Basic Financial Statements. 22 Charges Operating Capital Total for Grants and Grants and Program Functions/Programs Expenses Services Contributions Contributions Revenues Primary government: Governmental activities: Legislative and legal 1,293,214$ -$ -$ -$ -$ General government 3,078,044 2,582,857 25,504 - 2,608,361 Public safety 16,737,044 5,398,329 155,585 - 5,553,914 Community development 1,710,563 1,679,400 176,720 - 1,856,120 Culture and recreation 1,257,311 1,522,417 - - 1,522,417 Public works 6,985,762 1,085,165 625,819 328,649 2,039,633 Total governmental activities 31,061,938$ 12,268,168$ 983,628$ 328,649$ 13,580,445$ Program Revenues City of Hermosa Beach Statement of Activities For the Year Ended June 30, 2015 See accompanying Notes to the Basic Financial Statements. 23 Net (Expense) Revenue and Changes in Functions/Programs Net Position Primary government: Governmental activities: Legislative and legal (1,293,214)$ General government (469,683) Public safety (11,183,130) Community development 145,557 Culture and recreation 265,106 Public works (4,946,129) Total governmental activities (17,481,493) General Revenues: Taxes: Property taxes 13,739,648 Sales taxes 2,768,225 Real property transfer tax 312,416 Franchise fees 785,935 Transient occupancy tax 2,349,750 Business license 1,059,445 Utility users tax 2,442,575 ½ cent sales tax for public safety 229,824 Total taxes 23,687,818 Grants and contributions not restricted to specific programs 1,246,419 Investment earnings 510,668 Miscellaneous 489,740 Total general revenues 25,934,645 Change in net position before special item 8,453,152 Special Item: Settlement (Note 14)(14,000,000) Change in net position (5,546,848) Net position - beginning of year, as restated (Note 16)51,599,516 Net position - end of year 46,052,668$ City of Hermosa Beach Statement of Activities (Continued) For the Year Ended June 30, 2015 See accompanying Notes to the Basic Financial Statements. 24 FUND FINANCIAL STATEMENTS Governmental Fund Financial Statements Proprietary Fund Financial Statements Fiduciary Fund Financial Statements 25 This page intentionally left blank. 26 GOVERNMENTAL FUND FINANCIAL STATEMENTS 27 This page intentionally left blank. 28 GOVERNMENTAL FUND FINANCIAL STATEMENTS The Governmental Funds of the City are outlined below: General Fund - The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works. Sewer Fund - This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Capital Improvement Fund - Funds set aside for capital improvement projects. Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds. 29 Capital Improvements Nonmajor Sewer Special Capital Governmental General Revenue Fund Projects Fund Funds Total ASSETS Cash and investments 11,968,594$ 4,129,314$ 4,098,700$ 4,206,424$ 24,403,032$ Accounts receivable 1,273,394 30,054 - 244,988 1,548,436 Property taxes receivable, net 197,577 - - 6,757 204,334 Reimbursable grants receivable - - - 496,149 496,149 Interest receivable on investments 32,062 7,336 2,752 8,985 51,135 Other receivables 233,154 - - - 233,154 Other assets 203,665 - - - 203,665 Due from other funds 283,126 - - - 283,126 Total assets 14,191,572$ 4,166,704$ 4,101,452$ 4,963,303$ 27,423,031$ Liabilities: Accounts payable and accrued liabilities 1,351,931$ 430,653$ 177,258$ 506,450$ 2,466,292$ Accrued wages and benefits payable 1,967,543 13,297 - 13,911 1,994,751 Refundable deposits 315,867 - - - 315,867 Unearned revenues 42,543 - - - 42,543 Due to other funds - - - 283,126 283,126 Total liabilities 3,677,884 443,950 177,258 803,487 5,102,579 Fund Balances: Nonspendable 19,444 - - - 19,444 Restricted 460,304 - - 3,728,100 4,188,404 Committed 28,900 - - 431,716 460,616 Assigned 10,005,040 3,722,754 3,924,194 - 17,651,988 Total fund balances 10,513,688 3,722,754 3,924,194 4,159,816 22,320,452 Total liabilities and fund balances 14,191,572$ 4,166,704$ 4,101,452$ 4,963,303$ 27,423,031$ Major Funds LIABILITIES AND FUND BALANCES City of Hermosa Beach Balance Sheet Governmental Funds June 30, 2015 See accompanying Notes to the Basic Financial Statements. 30 Total Fund Balances - Total Governmental Funds 22,320,452$ Amounts reported for governmental activities in the Statement of Net Position 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. Government- Wide Statement of Net Position Internal Service Funds Nondepreciable 25,291,631$ (163,841)$ 25,127,790 Depreciable, net 41,441,670 (2,882,155) 38,559,515 Total capital assets 66,733,301$ (3,045,996)$ 63,687,305 Net other postemployment benefit assets are not available to pay for current period expenditures and therefore, are not reported in the governmental funds.91,126 Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-Wide Statement of Net Position. Insurance Fund (6,946,004) Equipment Replacement Fund 7,961,937 Total Internal Service Funds 1,015,933 Compensated absences were not due and payable in the current period. Therefore, they were not reported in the Governmental Funds Balance Sheet. Total compensated absences (2,300,181) Internal service funds 16,875 Amount included in the payroll liabilities 1,066,767 (1,216,539) Pension contributions made during the year after the measurement date are reported as pension expense in governmental funds and as deferred outflow of resources in the government-wide financial statements.3,725,913 Deferred amounts relates to pension net available for current expenditures and are not reported in the governmental fund financial statements: Actual earnings in excess of expected earning on pension plan investments. (7,715,601) Deferred amounts relates to pension net available for current expenditures and are not reported in the governmental fund financial statements: Employer's actual contributions in excess of employer's proportionate contributions. 401,419 Positive adjustment due to difference in proportions.352,601 Employer's proportionate contributions in excess of employer's actual contributions (219,901) Negative adjustment due to differences in proportions.(86,401) Net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds.(36,303,639) Net Position of Governmental Activities 46,052,668$ June 30, 2015 to the Government-Wide Statement of Net Position Reconciliation of the Governmental Funds Balance Sheet City of Hermosa Beach See accompanying Notes to the Basic Financial Statements. 31 Capital Improvements Nonmajor Sewer Special Capital Governmental General Revenue Fund Projects Fund Funds Total REVENUES: Property taxes 13,739,649$ -$ -$ 458,405$ 14,198,054$ Other taxes 9,948,170 - - 1,044,207 10,992,377 Licenses and permits 916,073 - - - 916,073 Fines and forfeitures 2,600,786 - - 51,407 2,652,193 Use of money and property 768,912 - - 318,846 1,087,758 Intergovernmental 298,001 15,321 - 977,527 1,290,849 Charges for services 6,941,275 74,958 - 302,176 7,318,409 Miscellaneous 252,854 40,000 - 395,193 688,047 Interest earned on investments 152,544 20,056 18,751 52,675 244,026 Total revenues 35,618,264 150,335 18,751 3,600,436 39,387,786 EXPENDITURES: Current: Legislative and legal 1,170,229 - - - 1,170,229 General government 2,960,379 - - 80,047 3,040,426 Public safety 18,009,359 - - 133,599 18,142,958 Community development 1,529,958 - - 192,555 1,722,513 Culture and recreation 1,217,620 - - 28,912 1,246,532 Public works 4,166,087 572,751 - 578,703 5,317,541 Capital outlay 1,010,144 462,231 211,488 1,936,322 3,620,185 Total expenditures 30,063,776 1,034,982 211,488 2,950,138 34,260,384 REVENUES OVER (UNDER) EXPENDITURES 5,554,488 (884,647) (192,737) 650,298 5,127,402 OTHER FINANCING SOURCES (USES): Transfers in 351,104 3,914,256 2,610,442 36,111 6,911,913 Transfers out (3,496,906)- (1,324,690)(351,104) (5,172,700) Total other financing sources (uses)(3,145,802) 3,914,256 1,285,752 (314,993) 1,739,213 NET CHANGES IN FUND BALANCES 2,408,686 3,029,609 1,093,015 335,305 6,866,615 FUND BALANCES: Beginning of year 8,105,002 693,145 2,831,179 3,824,511 15,453,837 End of year 10,513,688$ 3,722,754$ 3,924,194$ 4,159,816$ 22,320,452$ Major Funds City of Hermosa Beach Statement of Revenues, Expenditures and Changes in Fund Balances Governmental Funds For the Year Ended June 30, 2015 See accompanying Notes to the Basic Financial Statements. 32 Net Change in Fund Balances - Total Governmental Funds 6,866,615$ 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, the cost of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below. Total capital outlay expenditures reported in governmental funds 3,620,185 Less: repair and maintenance expenditures (172,071) Total capital outlay (net of $812,185 reported in internal service fund)3,448,114 The net effect on disposal of capital assets.(81,774) Depreciation expense of capital assets is reported in the Government-Wide Statement of Activities, but they do not require the use of current financial resources. Therefore, depreciation expense is not reported as expenditures in the governmental funds except for the Internal Service Fund amounts listed below. Total depreciation reported in Government-Wide Statement of Activities (2,272,785) Less: depreciation reported in Internal Service Funds 341,180 Total (1,931,605) Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.847,665 Changes in net other postemployment benefit assets reported in the Statement of Activities do not use current financial resources and, therefore, are not reported as an expenditures in governmental funds.(31,588) Compensated absences were reported in the Government-Wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.(153,780) Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.(14,510,495) Change in Net Position of Governmental Activities (5,546,848)$ Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government-Wide Statement of Activities For the Year Ended June 30, 2015 City of Hermosa Beach See accompanying Notes to the Basic Financial Statements. 33 This page intentionally left blank. 34 PROPRIETARY FUND FINANCIAL STATEMENTS 35 This page intentionally left blank. 36 PROPRIETARY FUND FINANCIAL STATEMENTS Internal Service Funds - To account for the costs associated with the City's insurance and for funding equipment replacement. 37 Governmental Activities Internal Service Funds ASSETS Current assets: Cash and investments 15,826,930$ Other assets 106,721 Total current assets 15,933,651 Noncurrent assets: Nondepreciable capital assets 163,841 Depreciable capital assets, net of accumulated depreciation 2,882,155 Total noncurrent assets 3,045,996 Total assets 18,979,647 LIABILITIES Current liabilities: Accounts payable 591,393 Accrued wages and benefits payable 11,934 Interest payable on settlement 133,867 Settlement payable (Note 14)11,500,000 Workers' compensation claims payable - due within one year 686,562 General liability claims payable - due within one year 323,644 Compensated absences due within one year 16,875 Total current liabilities 13,264,275 Long-term liabilities: Workers' compensation claims payable - due in more than one year 4,134,783 General liability claims payable - due in more than one year 564,656 Total long-term liabilities 4,699,439 Total liabilities 17,963,714 NET POSITION Investment in capital assets 3,045,996 Unrestricted (deficit)(2,030,063) Total net position 1,015,933$ City of Hermosa Beach June 30, 2015 Proprietary Funds Statement of Net Position See accompanying Notes to the Basic Financial Statements. 38 Governmental Activities Internal Service Funds OPERATING REVENUES: Charges for services 4,301,712$ Miscellaneous revenue 200,351 Total operating revenues 4,502,063 OPERATING EXPENSES: Salaries and wages 276,195 Contractor services 1,752,064 Supplies 516,373 Claims expense 262,393 Depreciation 341,180 Total operating expenses 3,148,205 OPERATING INCOME 1,353,858 NONOPERATING REVENUES (EXPENSES): Operating grant 3,000 Interest expenses (133,867) Gain on disposal of capital assets 5,727 Total nonoperating revenues (expenses)(125,140) LOSS BEFORE TRANSFERS AND SPECIAL ITEM 1,228,718 TRANSFERS: Transfers in 1,324,690 Transfers out (3,063,903) Total transfers (1,739,213) SPECIAL ITEM: Settlements (Note 14)(14,000,000) Total special item (14,000,000) Change in net position (14,510,495) NET POSITION: Beginning of the year 15,526,428 End of the year 1,015,933$ City of Hermosa Beach For the Year Ended June 30, 2015 Proprietary Funds Statement of Revenues, Expenses and Changes in Net Position See accompanying Notes to the Basic Financial Statements. 39 Governmental Activities Internal Service Funds CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services from other funds 4,301,712$ Cash received from insurance recovery 200,351 Cash payments to suppliers for goods and services (1,941,921) Cash payments to employees for services (285,530) Cash payment for insurance premiums (1,504,994) Net cash provided by operating activities 769,618 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Contributions 3,000 Payment on settlement (6,000,000) Transfers in 1,324,690 Transfers out (3,063,903) Net cash (used in) noncapital financing activities (7,736,213) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of capital assets (812,185) Proceeds from sale of capital assets 25,121 Net cash (used in) capital and related financing activities (787,064) Net (decrease) in cash and cash equivalents (7,753,659) CASH AND CASH EQUIVALENTS: Beginning of year 23,580,589 End of year 15,826,930$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 1,353,858$ Adjustments to reconcile operating income to net cash provided by operating activities: Depreciation 341,180 (Increase) decrease in: Other assets (27,721) Increase (decrease) in: Accounts payable 354,237 Accrued wages and benefits payable 130 Workers' compensation claims payable (744,567) General liability claims payable (498,034) Compensated absences (9,465) Total adjustments (584,240) Net cash provided by operating activities 769,618$ For the Year Ended June 30, 2015 Proprietary Funds Statement of Cash Flows City of Hermosa Beach See accompanying Notes to the Basic Financial Statements. 40 FIDUCIARY FUND FINANCIAL STATEMENTS 41 This page intentionally left blank. 42 FIDUCIARY FUND FINANCIAL STATEMENTS Agency Funds are used to account for assets held by the City in the capacity of agent for individuals. Agency Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. 43 Agency Funds ASSETS Cash and investments 555,723$ Interest receivable 1,225 Other accounts receivable 7,318 Other assets 90 Total assets 564,356$ LIABILITIES Assessment: Installment account 551,356$ Reserve requirement 13,000 Total liabilities 564,356$ City of Hermosa Beach Statement of Fiduciary Net Position June 30, 2015 Fiduciary Funds See accompanying Notes to the Basic Financial Statements. 44 City of Hermosa Beach Index to Notes to the Basic Financial Statements For the Year Ended June 30, 2015 45 Page Note 1 – Summary of Significant Accounting Policies ..................................................................................... 47 A. Financial Reporting Entity ............................................................................................................. 47 B. Basis of Accounting and Measurement Focus ............................................................................... 48 C. Cash and Investments ..................................................................................................................... 50 D. Property Taxes Receivable ............................................................................................................. 50 E. Interfund Transactions .................................................................................................................... 50 F. Capital Assets ................................................................................................................................. 51 G. Unearned and Unavailable Revenue .............................................................................................. 51 H. Claims Payable ............................................................................................................................... 51 I. Compensated Absences Payable .................................................................................................... 52 J. Pension ........................................................................................................................................... 52 K. Net Position .................................................................................................................................... 53 L. Fund Balances ................................................................................................................................ 53 M. Spending Policy ............................................................................................................................. 54 N. Use of Estimates ............................................................................................................................. 54 O. Accounting Changes ...................................................................................................................... 55 Note 2 – Cash and Investments .......................................................................................................................... 55 Note 3 – Receivables ............................................................................................................................................ 59 Note 4 – Lease Revenues ..................................................................................................................................... 60 Note 5 – Interfund Transactions ........................................................................................................................ 61 Note 6 – Capital Assets ....................................................................................................................................... 62 Note 7 – Compensated Absences ........................................................................................................................ 63 Note 8 – Risk Management................................................................................................................................. 63 Note 9 – Defined Benefit Pension Plans ............................................................................................................. 65 Note 10 – Other Postemployment Benefit Plan ................................................................................................ 80 Note 11 – Classification of Fund Balances ........................................................................................................ 83 Note 12 – Non-City Obligations ......................................................................................................................... 84 Note 13 – Commitments and Contingencies ..................................................................................................... 86 Note 14 – Macpherson Oil Project Litigation ................................................................................................... 87 Note 15 – Subsequent Events ............................................................................................................................. 89 Note 16 – Prior Period Adjustments .................................................................................................................. 89 46 This page intentionally left blank. City of Hermosa Beach Notes to the Basic Financial Statements For the Year Ended June 30, 2015 47 Note 1 – Summary of Significant Accounting Policies The basic financial statements of the City of Hermosa Beach, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies: A. Financial Reporting Entity The City was incorporated on January 14, 1907, under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (police, crossing guards and fire), maintenance and construction of public improvements, cultural, recreation, community development (planning and zoning), and general administrative services. The basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and either the City is able to impose its will on that organization or there is a potential for the organization to provide financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statement to be misleading or incomplete. Blended component units, although legally separate entities, are in substance, part of the City’s operations and data from these units are combined with data of the City. Management determined that the following entities should be reported as blended component units based on the criteria above. Each blended component unit has a June 30 year-end, has a governing board that is substantially the same as the City’s, and the City is financially accountable for each of the blended component units. Hermosa Beach Street Lighting and Landscaping District – The Hermosa Beach Street Lighting and Landscaping Assessment District was created for street lighting/median maintenance purposes pursuant to Street and Highway Code Sections 22500-22679. Lower Pier Avenue Assessment District – The Lower Pier Avenue Assessment District was created for improvement of the assessment district in November 1997 pursuant to Street and Highway Code Section 10000. Myrtle Avenue Underground Utility District – The Myrtle Avenue Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000. Loma Drive Underground Utility District – The Loma Drive Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000. Beach Drive Assessment District – The Beach Drive Assessment District was created in July 2004 pursuant to Street and Highway Code Section 10000. Bayview Drive Underground District – The Bayview Drive Underground District was created in February 2005 pursuant to Street and Highway Code Section 10000. The above component units do not issue separate financial statements. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 48 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. In accordance with GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position, the statement of net position reports separate sections for Deferred Outflows of Resources and Deferred Inflows of Resources, when applicable. Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time. Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time. Government-Wide Financial Statements The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements. Certain types of transactions are reported as program revenues for the City in three categories:  Charges for services  Operating grants and contributions  Capital grants and contributions Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated:  Due from and to other funds, which are short-term loans within the primary government  Transfers in and out, which are flows of assets between funds without the requirement for repayment Governmental Fund Financial Statements All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances. Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 49 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued) Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, intergovernmental revenues and other taxes. The exception to that rule is sales tax. Beginning in 2004-05, the State took sales tax revenue (Sales Tax In Lieu) from cities and counties, in order to use the source of funds as a guarantee for state issued debt to finance budget deficits. Sales tax is received on a monthly basis. Funds will be repaid according to the property tax schedule, with the bulk of payments occurring only twice a year. As such, the City has adopted an accrual policy of 7 months for recording this revenue. The revenue was earned by June 30, however the payment will not be received until January of the following fiscal year. This amount is reported as assigned fund balance to reflect that these funds are not available for appropriation. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30. Expenditures are recorded in the accounting period in which the related fund liability is incurred. Reconciliations of the fund financial statements to the government-wide financial statements are provided to explain the differences. The City reports the following major governmental fund: General Fund – The General Fund is the City’s principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund. Sewer Special Revenue Fund – This fund is used to account for funds derived from a portion of the 6% utility user tax and miscellaneous services charges. Funds are spent on the Sewer/Storm Drain Department and capital sewer projects. Capital Improvement Capital Projects Fund – The Capital Improvement Capital Projects Fund is funds set aside for capital improvement projects. Proprietary Fund Financial Statements Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 50 Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Internal service funds are the only funds presented in the proprietary fund financial statements. However, internal service balances and activities have been combined with the governmental activities in the government- wide financial statements. The internal service funds are used to account for equipment replacement and insurance provided to other City departments on a cost-reimbursement basis. Fiduciary Fund Financial Statements The City’s fiduciary funds represent agency funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The fiduciary funds are accounted for using the accrual basis of accounting. The City maintains seven fiduciary funds which represent assets resulting from assessments to the property owners in four utility undergrounding districts, two reserve funds for utility undergrounding districts and a downtown improvement district (Lower Pier Avenue). The assets are used to repay bonds secured by the private property in the district. C. Cash and Investments The City’s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes. Investments are stated at fair value (quoted market price or best available estimate thereof). D. Property Taxes Receivable Property taxes attach as an enforceable lien on property as of January 1 each year. The property tax year runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year. Taxes are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (the “County”) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized 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, or .203 cents of each $1.00, proportionate to what it received during the years 1976 to 1978. E. Interfund Transactions Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans). City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 51 Note 1 – Summary of Significant Accounting Policies (Continued) F. Capital Assets In the government-wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets are valued at their estimated fair market value on the date donated. City policy has set the capitalization threshold for reporting capital assets at $5,000 and infrastructure at $100,000. The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewers and storm drains, parking meters and monuments. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights and landscaping. These subsystems were not delineated in the basic financial statements. The Finance Department, with the assistance of the appropriate operating department, maintains information regarding the subsystems. Interest incurred during capital assets construction, if any, is capitalized for the proprietary funds as part of the asset cost. For all infrastructure systems, the City elected to use the “Basic Approach” and depreciate over its estimated useful life. Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method. The lives used for depreciation purposes are as follows: Buildings 50 years Improvements other than buildings 20 years Machinery and equipment 3-20 years Infrastructure 15-50 years G. Unearned and unavailable revenue In the government-wide financial statements, unearned revenue is recognized for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government- wide financial statements are cell phone site license lease payments received in advance, prepaid charges for services and facility rentals paid in advance. In the fund financial statements, unearned revenue is recorded when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City records unearned revenue for transactions for which revenues have not been earned, or for which funds are not available to meet current financial obligations in accordance with GASB Statement No. 65. Typical transactions for which unearned revenue is recorded are lease payments, quarterly encroachment fees and advance registration for recreation classes which were not yet earned. H. Claims Payable The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 52 Note 1 – Summary of Significant Accounting Policies (Continued)   I. Compensated Absences Payable City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. All of the liability for compensated absences applicable to proprietary funds is reported in those funds. The City’s goal is to accumulate 25% of the funding for the accrued liability for compensated absences in the assigned fund balance for compensated absences. J. Pension GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27 and Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. These pronouncements affected pension related items. See Note 1 O. For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 9). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value. The following timeframes are used for pension reporting: CalPERS Valuation Date June 30, 2013 Measurement Date June 30, 2014 Measurement Period July 1, 2013 to June 30, 2014 Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 53 Note 1 – Summary of Significant Accounting Policies (Continued) K. Net Position In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows: Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation. Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets. Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position. L. Fund Balances In the governmental fund financial statements, fund balances are classified as follows: Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as inventory or prepaid items, or because resources legally or contractually must remain intact. Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation. Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment. Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose. Unassigned – Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 54 Note 1 – Summary of Significant Accounting Policies (Continued) M. Spending Policy Government – Wide Financial Statements and Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply restricted component of net position first, then the unrestricted component of net position as needed. Governmental Fund Financial Statements When expenditures are incurred for purposes for which restricted, committed, assigned and unassigned fund balances are all available, the City’s policy is to use these balances in the following order unless an ordinance specifies the fund balance to be used: restricted, committed, assigned and unassigned. Long-term financial planning The City Council’s adopted financial policies relating to long-term financial planning for specific purposes are as follows: Insurance Fund - Goal of $3,000,000 in net position for claims reserves and catastrophic losses. Equipment Replacement Fund - Goal of net position equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment. Contingency - Goal equal to 16% of the General Fund appropriations for economic uncertainties, unforeseen emergencies. Compensated Absences - Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time. The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, and Capital Improvement Capital Projects Fund and to add to Contingency funds. For 2014-15, the City Council determined that all unspent funds in the General Fund $2,610,442 would be transferred to the Capital Improvement Capital Projects Fund. The City Council makes changes as necessary to the year end transfer, depending on the equity in the funds or based on other needs. N. Use of Estimates The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 55 Note 1 – Summary of Significant Accounting Policies (Continued) O. Accounting Changes GASB has issued Statement No. 68, Accounting and Financial Reporting for Pensions – an amendment of GASB Statement No. 27. This Statement establishes standards for measuring and recognizing liabilities, deferred outflow of resources, deferred inflows of resources, and expense/expenditures for pension plans. This Statement identifies the methods and assumptions that should be used to project benefit payments, discount projected benefit payments to their actuarial present value, and attribute that present value to periods of employee service. This Statement became effective for periods beginning after June 15, 2014. See Note 16 for prior period adjustment as a result of implementation. GASB has issued Statement No. 69, Government Combinations and Disposals of Government Operations. This Statement establishes accounting and financial reporting standards related to government combinations and disposals of government operations. As used in this Statement, the term government combinations includes a variety of transactions referred to as mergers, acquisitions, and transfers of operations. This Statement became effective for periods beginning after December 15, 2013 and did not have a significant impact on the City’s financial statements for the year ended June 30, 2015. GASB has issued Statement No. 71, Pension Transition for Contributions Made Subsequent to the Measurement Date – an amendment of GASB Statement No. 68. This Statement establishes standards related to amounts associated with contributions, if any, made by a state or local government employer or nonemployer contributing entity to a defined benefit pension plan after the measurement date of the government's beginning net pension liability. This Statement became effective for periods beginning after June 15, 2014. See Note 16 for prior period adjustment as a result of implementation. Note 2 – Cash and Investments The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds. The City had the following cash and investments at June 30, 2015: Government-Wide Statement of Net Position Statement of Governmental Fiduciary Activities Net Position Total Cash and investments 40,229,962$ 555,724$ 40,785,686$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 56 Note 2 – Cash and Investments (Continued) The City’s cash and investments at June 30, 2015 in more detail: Cash and cash equivalents: Demand deposits 5,644,245$ Petty cash 2,000 Total cash and cash equivalents 5,646,245 Investments: Local Agency Investment Fund 2,232,088 Los Angeles County Pooled Investments Funds 28,719,506 Negotiable certificates of deposit 3,191,747 Corporate medium-term notes 501,410 U.S. Government Sponsored Enterprise Securities 494,690 Total investments 35,139,441 Total cash and investments 40,785,686$ A. Deposits The carrying amounts of the City’s demand deposits were $5,644,245 at June 30, 2015. Bank balances at that date were $6,013,158, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below. The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor. Thus, collateral for cash deposits is considered to be held in the City’s name. The market value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements. The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures, if applicable. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances, however, interest is not allocated to funds created to advance costs for utility undergrounding districts, reimbursable grant funds or internal service funds. B. Investments Under the provisions of the City’s investment policy, the City’s investments are limited to those authorized by the California Government Code, except as follows:  There is no maximum amount or maximum maturity period of the City’s idle funds that may be invested with the Local Agency Investment Fund (“LAIF”) or the Los Angles County Pooled Investment Fund (“LACPIF”)  Negotiable Certificates of Deposit shall not exceed 30 percent of the City’s surplus money and mature in 5 years or less. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 57 Note 2 – Cash and Investments (Continued) B. Investments (Continued)  Medium-term corporate notes shall have a Moody or Standard & Poor’s rating of at least AA and mature in 5 years or less The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2015 included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the following: Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options. Asset-Backed Securities: generally mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables. As of June 30, 2015, the City had $2,232,088 invested in LAIF, which had invested 2.08% of the pool investment funds in Structured Notes and Asset-Backed Securities. Investment in Los Angeles County Investment Pool The City is a voluntary participant in the Los Angeles County Investment Pool pursuant to Government Code Section 53684. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Los Angeles County Investment Pool’s Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are to be performed no less than semi-annually. In accordance with Government Code Section 27136, all requests for withdrawal of funds for the purpose of investing or depositing the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. As of June 30, 2015, the City had $28,719,506 invested in the Los Angeles County Investment Pool. C. Risk Disclosures Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years. At June 30, 2015, the City had the following investment maturities: Investment Type Fair value Less than 1 1 to 2 2 to 3 4 to 5 Local Agency Investment Fund 2,232,088$ 2,232,088$ -$ -$ -$ Los Angeles County Pooled Investments Fund 28,719,506 28,719,506 - - - Certificates of deposit 3,191,747 690,760 748,924 248,308 1,503,755 Corporate medium-term notes 501,410 501,410 - - - U.S. Government Sponsored Enterprise Securities 494,690 - - - 494,690 Total 35,139,441$ 32,143,764$ 748,924$ 248,308$ 1,998,445$ Investment Maturities (in Years) City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 58 Note 2 – Cash and Investments (Continued) C. Risk Disclosures (Continued) Credit Risk – State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to limit its investments in these investment types to the top rating issued by Standard & Poor’s and Moody’s Investor Service. At June 30, 2015, the City’s credit risks, expressed on a percentage basis, were as follows: Moody's S&P's % of Investments Credit Credit with Interest Investment Type Rating Rating Rate Risk Local Agency Investment Fund (LAIF) Not Rated Not Rated 6.35% Los Angeles County Pooled Investments Fund Not Rated Not Rated 81.73% Certificates of Deposits Not Rated Not Rated 9.08% Corporate medium-term notes: General Electric Capital Corp. A1 AA+ 1.43% U.S. Government Sponsored Enterprise Securities: Federal Home Loan Bank Aaa AA+ 1.41% Total 100.00% with Credit Exposure as a Percentage of Total Investments Credit Quality Distribution for Securities Custodial Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. Concentration of credit risk – The City’s investment policy does not allow for investments in any one institution that is in excess of 5% of the City’s total portfolio, except for LAIF and LACIPIF, where there is no limit. The City is in compliance with the investment policy related to the concentration of credit risk for the year ended June 30, 2015. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 59 Note 3 - Receivables A. Government-Wide Financial Statements At June 30, 2015, the government-wide financial statements show the following receivables, net of allowances for uncollectible amounts, if any: Government-Wide Statement of Net Position Statement of Governmental Fiduciary Activities Net Position Total Accounts receivable 1,548,436$ -$ 1,548,436$ Property taxes receivable, net 204,334 - 204,334 Reimbursable grants receivable 496,149 - 496,149 Interest receivable on investments 51,135 1,225 52,360 Other receivables 233,154 7,318 240,472 Total 2,533,208$ 8,543$ 2,541,751$ B. Fund Financial Statements Accounts Receivable Accounts receivable consisted of amounts accrued in the ordinary course of operations. The total amount of accounts receivable for each major and nonmajor funds in the aggregate as of June 30, 2015, were as follows: General Fund 1,736,187$ Sewer Special Revenue Fund 37,390 Capital Improvements Capital Projects Fund 2,752 Nonmajor Funds 756,879 Total governmental funds 2,533,208 Total accounts receivable 2,533,208$ Taxes Receivable At June 30, 2015, the City had property taxes receivable, net of allowance for delinquent property taxes receivables, in the following major fund and nonmajor funds in the aggregate: Allowance for Property Property delinquent tax taxes, net taxes receivables of allowance Governmental Funds: General Fund 793,416$ (595,839)$ 197,577$ Nonmajor funds 15,248 (8,491) 6,757 Total 808,664$ (604,330)$ 204,334$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 60 Note 3 – Receivables (Continued) B. Fund Financial Statements (Continued) Reimbursable Grants Receivable Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants receivable as of June 30, 2015 was as follows: Governmental Funds: Safe Drinking Water Grant 18,233$ California Coastal Commission 20,275 West Basin 1,375 General Coastal Plan Update 88,410 Surf Memorial Trust 176,243 Coastal Conservancy - Sea Level Rise 31,095 Other 160,518 Total reimbursable grants receivable 496,149$ Note 4 – Lease Revenues In February 2001, a 50 year lease for the retail space located in front of the North Pier Parking Structure was initiated. The City receives a monthly lease payment in the amount of $2,985. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on the consumer price index. The next increase is due in January 2016. In February 2004, the City entered into a 5 year lease agreement with Sprint, a cellular telephone company, for placement of an antenna on the North Pier Parking Structure. The lease includes a provision for 5 lease extensions with a 5 year term for each. In February 2009, the lease was extended through January 31, 2015. The City received a monthly lease payment in the amount of $2,813. In June 2005, the City purchased property adjacent to City Hall that is used as a self-storage facility. The existing lease for the storage facility was transferred to the City as a condition of the sale. The original lease term was through January 31, 2009, and was extended beginning February 1, 2009 to April 30, 2015 through various amendments. In April, 2015, the lease was amended to extended extend the term to April 30, 2020 and that lease can be terminated without cause at any time after April 2017 with one year of written notice to the City. The City receives a monthly lease payment in the amount of $15,000. In February 2014, the City entered into a 5 year lease agreement with Verizon wireless, a cellular telephone company, for the placement of 12 panel antennas and 6 remote radio units at the Municipal Parking Facility. The annual lease rate is expected to increase at a rate of 3% with base monthly payment amount of $2,400. The City leases a portion of the Hermosa Beach Community Center to nonprofit and cultural organizations. The leases are renegotiated annually. All of the above leases are accounted for as operating leases by the City. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 61 Note 4 – Lease Revenues (Continued) The future minimum rental revenues under these leases are as follows: Year ending June 30, 2016 266,059$ 2017 246,675 2018 247,601 2019 237,426 2020 185,816 2021-2025 179,080 2026-2030 179,080 2031-2035 179,080 2036-2040 179,080 2041-2045 179,080 2046-2050 161,172 Total 2,240,149$ Lease revenue for the year ended June 30, 2015 was $322,966. Note 5 – Interfund Transactions Due From/To Other Funds – At June 30, 2015, the City had the following due from/to other funds: Due From Other Funds Due To Other Funds General Fund Nonmajor Governmental funds 283,126$ Total 283,126$ The above amount resulted from the time lag between the dates that reimbursable expenditures occur and payments are received from other agencies. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 62 Note 5 – Interfund Transactions (Continued) Transfers During the year ended June 30, 2015, the City had the following transfers: Capital Improvements Nonmajor Internal General Sewer Special Capital Projects Governmental Service Transfers out Fund Revenue Fund Fund Funds Funds Total General Fund -$ 850,353$ 2,610,442$ 36,111$ -$ 3,496,906$ Capital Improvements Capital Projects Fund - - - - 1,324,690 1,324,690 Nonmajor Governmental Funds 351,104 - - - - 351,104 Internal Service funds - 3,063,903 - - - 3,063,903 Total 351,104$ 3,914,256$ 2,610,442$ 36,111$ 1,324,690$ 8,236,603$ Transfers in In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to reimburse the General Fund for administration services provided to other funds. In addition, $3,063,903 was transferred from Insurance Internal Service Fund to Sewer Special Revenue Fund to help fund the upcoming sewer rehabilitation project, $2,610,442 was transferred from General Fund to Capital Improvements Capital Projects fund to fund capital projects, and $1,324,690 was transferred from Capital Improvements Capital Projects Fund to Equipment Replacement Internal Service Fund to meet equipment funding goals during the year ended June 30, 2015. Note 6 – Capital Assets The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2015: Balance Balance July 1, 2014 Additions Deletions Reclassifications June 30, 2015 Capital assets not being depreciated: Land 22,740,168$ -$ -$ -$ 22,740,168$ Construction in progress 1,175,057 1,786,816 (81,025) (329,385) 2,551,463 Total capital assets not being depreciated 23,915,225 1,786,816 (81,025) (329,385) 25,291,631 Capital assets being depreciated: Buildings and structures 12,945,808 - - - 12,945,808 Improvements other than buildings 14,459,688 - - 14,459,688 Machinery and equipment 4,133,782 1,163,128 (66,975) - 5,229,935 Vehicles 4,107,697 169,019 (113,908) - 4,162,808 Infrastructure 49,522,531 1,141,336 - 329,385 50,993,252 Total capital assets being depreciated 85,169,506 2,473,483 (180,883) 329,385 87,791,491 Less accumulated depreciation for: Buildings and structures (4,152,929) (102,635) - - (4,255,564) Improvements other than buildings (11,480,885) (265,107) - - (11,745,992) Machinery and equipment (2,989,759) (273,313) 65,782 - (3,197,290) Vehicles (2,468,861) (217,319) 113,908 - (2,572,272) Infrastructure (23,164,292) (1,414,411) - - (24,578,703) Total accumulated depreciation (44,256,726) (2,272,785) 179,690 - (46,349,821) Total capital assets being depreciated, net 40,912,780 200,698 (1,193) 329,385 41,441,670 Total governmental activities 64,828,005$ 1,987,514$ (82,218)$ -$ 66,733,301$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 63 Note 6 – Capital Assets (Continued) Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2015 as follows: General government 57,315$ Public safety 124,812 Community development 18,916 Culture and recreation 47,617 Public works 268,535 Infrastructure 1,414,410 Capital assets held by the government's internal service funds are charged to the various functions based on their usage of the assets 341,180 Total depreciation expense 2,272,785$ Note 7 – Compensated Absences Summary of changes in compensated absences for governmental activities for the year ended June 30, 2015 is as follows: Balance Balance Due within Due in more July 1, 2014 Additions Deletions June 30, 2015 One Year than One Year Compensated absences 2,270,972$ 999,404$ (970,195)$ 2,300,181$ 1,083,642$ 1,216,539$ Classification The compensated absences payable has been accrued for the governmental activities on the government-wide financial statements. Typically, the General Fund (major fund), the Lighting and Landscaping District Fund, AB 939 Fund and the Sewer Fund (nonmajor funds) have been used to liquidate the liability for compensated absences. There is no fixed payment schedule to pay these liabilities. Note 8 – Risk Management The City maintains an internal service fund to account for the City’s general liability and workers’ compensation claims, automobile, property, and unemployment insurance. The City is self-insured for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $20,000,000 per occurrence, as a member of the Independent Cities Risk Management Authority (“ICRMA”). The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA and the California State Association of Counties (“CSAC”). Together, these two joint powers authorities provide a shared limit of coverage up to a maximum of $200 million. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 64 Note 8 – Risk Management (Continued) ICRMA is a joint exercise of powers authority organized and operating pursuant to the California Government Code. ICRMA was formed in 1980 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable ICRMA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers’ compensation claims. ICRMA’s annual budget is based on estimated actuarially determined member losses within the risk sharing layer, administrative expenses and excess insurance. The City’s premiums to ICRMA in the amount of $744,287 for the fiscal year 2014-2015 are in accordance with formulas established by ICRMA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement; however, there has never been an additional assessment since the pool was formed. The City has entered into contracts with third party administrators who supervise and administer the City’s general liability and workers’ compensation insurance program. Claim loss estimates are determined by the third party administrator based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (“IBNR”) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid. The workers’ compensation and general liability claims payable of $5,709,645 reported at June 30, 2015 includes the liability for claims in which it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in the City’s claims liability amounts were as follows: Current Year Amounts Beginning Claims and End Amounts Due in of Year Changes in Claim of Year Due within more than Liability Estimates Payments Liability One Year One Year Workers' Compensation 2012-2013 6,956,550$ 821,226$ (842,530)$ 6,935,246$ 1,064,488$ 5,870,758$ 2013-2014 6,935,246 (452,257) (917,077) 5,565,912 791,596 4,774,316 2014-2015 5,565,912 (1,168,562) 423,995 4,821,345 686,562 4,134,783 General Liability 2012-2013 1,058,513$ 381,993$ (260,835)$ 1,179,671$ 417,109$ 762,562$ 2013-2014 1,179,671 827,029 (620,366) 1,386,334 518,155 868,179 2014-2015 1,386,334 (325,127) (172,907) 888,300 323,644 564,656 Detailed financial information may be obtained from the ICRMA Program Administrator located at 1100 W. Town and Country Road, Suite 1550, Orange, CA 92868. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 65 Note 9 – Defined Benefit Pension Plans The following is a summary of changes in deferred outflows and inflows of resources, and net pension liability for the governmental activities for the year ended June 30, 2015: Balance July 1, 2014 Balance (As Restated) Additions Deletions June 30, 2015 Deferred outflows of resources: Pension contribution made after measurement date: Fire Tier 1 726,540$ 759,620$ (726,540)$ 759,620$ Fire Tier 2 981 - (981) - Fire Tier PEPRA - 11,264 - 11,264 Police Tier 1 1,776,475 1,977,042 (1,776,475) 1,977,042 Police Tier 2 44,685 42,151 (44,685) 42,151 Police PEPRA 24,711 52,343 (24,711) 52,343 Miscellaneous Tier 1 691,091 738,563 (691,091) 738,563 Miscellaneous Tier 2 76,510 90,048 (76,510) 90,048 Miscellaneous PEPRA 32,036 54,882 (32,036) 54,882 Total pension contribution after measurement date 3,373,029 3,725,913 (3,373,029) 3,725,913 Employer's actual contributions in excess of employer's proportionate share of contributions: Fire Tier 1 - 25,647 (6,749) 18,898 Fire Tier 2 - 658 (174) 484 Police Tier 1 - 346,609 (91,213) 255,396 Police Tier 2 - 42,665 (11,228) 31,437 Police PEPRA - 24,709 (6,502) 18,207 Miscellaneous Tier 2 - 72,499 (19,079) 53,420 Miscellaneous PEPRA - 31,997 (8,420) 23,577 Total employer's actual contributions in excess of employer's proportionate share of contributions - 544,784 (143,365) 401,419 Adjustment due to difference in proportion pension investments: Fire Tier 1 - 99,662 (26,227) 73,435 Police Tier 1 - 148,909 (39,187) 109,722 Police PEPRA - 8,780 (2,311) 6,469 Miscellaneous Tier 1 - 221,181 (58,206) 162,975 Total adjustment due to difference in proportion pension investments - 478,532 (125,931) 352,601 Total deferred outflows of resources 3,373,029$ 4,749,229$ (3,642,325)$ 4,479,933$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 66 Note 9 – Defined Benefit Pension Plans (Continued) Balance July 1, 2014 Balance (As Restated) Additions Deletions June 30, 2015 Net pension liabilities: Fire Tier 1 9,492,358$ 2,798,326$ (4,532,301)$ 7,758,383$ Fire Tier 2 3,462 20,803 (21,650) 2,615 Police Tier 1 21,784,708 5,725,081 (9,145,112) 18,364,677 Police Tier 2 21,559 60,782 (66,060) 16,281 Police PEPRA 20 16,268 (16,273) 15 Miscellaneous Tier 1 12,722,372 3,925,441 (6,516,755) 10,131,058 Miscellaneous Tier 2 41,426 141,520 (152,627) 30,319 Miscellaneous PEPRA 398 32,819 (32,926) 291 Total net pension liabilities 44,066,303$ 12,721,040$ (20,483,704)$ 36,303,639$ Deferred inflows of Resources: Difference in projected and actual earnings on pension investments: Fire Tier 1 -$ 2,132,396$ (426,479)$ 1,705,917$ Fire Tier 2 - 988 (198) 790 Police Tier 1 - 4,350,226 (870,045) 3,480,181 Police Tier 2 - 6,145 (1,229) 4,916 Police PEPRA - 6 (1) 5 Miscellaneous Tier 1 - 3,141,881 (628,376) 2,513,505 Miscellaneous Tier 2 - 12,736 (2,547) 10,189 Miscellaneous PEPRA - 122 (24) 98 Total difference in projected and actual earnings on pension investments - 9,644,500 (1,928,899) 7,715,601 Employer's proportionate share of contribution in excess of employer's actual contribution: Miscellaneous Tier 1 - 298,437 (78,536) 219,901 Total employer's proportionate share of contribution in excess of employer's actual contribution - 298,437 (78,536) 219,901 Total adjustment due to difference in proportions: Fire Tier 2 - 19,198 (5,052) 14,146 Police Tier 2 - 34,900 (9,184) 25,716 Miscellaneous Tier 2 - 62,779 (16,521) 46,258 Miscellaneous PEPRA - 381 (100) 281 Total adjustment due to difference in proportions - 117,258 (30,857) 86,401 Total deferred inflows of resources -$ 10,060,195$ (2,038,292)$ 8,021,903$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 67 Note 9 – Defined Benefit Pension Plans (Continued) General Information about the Pension Plan Plan Description The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multiple-employer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814. Employees Covered by Benefit Terms At June 30, 2013, the following employees were covered by the benefit terms: Fire Tier 1 Fire Tier 2 Police Tier 1 Police Tier 2 Police PEPRA Active employees 15 1 28 2 1 Transferred and terminated employees 10 - 14 1 - Separated 5 - 5 2 - Retired Employees and Beneficiaries 48 - 87 - - Total 78 1 134 5 1 Plans Misc. Tier 1 Misc. Tier 2 Misc. PEPRA Active employees 67 14 7 Transferred and terminated employees 58 1 - Separated 55 2 - Retired Employees and Beneficiaries 116 - - Total 296 17 7 Plans There were no employees covered by Fire PEPRA plan at June 30, 2013. Benefit Provided CalPERS provide retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS member becomes eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 68 Note 9 – Defined Benefit Pension Plans (Continued) General Information about the Pension Plan Benefit Provided Following are the benefit provisions for each plan:  Fire Tier 1: 3% (at age 55) of the average final 12 months compensation  Fire Tier 2: 2% (at age 50) of the average final 12 months compensation  Fire PEPRA: 2.7% (at age 57) of the average final 36 months compensation  Police Tier 1: 3% (at age 50) of the average final 12 months compensation  Police Tier 2: 2% (at age 50) of the average final 12 months compensation  Police Tier PEPRA: 2.7% (at age 57) of the average final 36 months compensation  Miscellaneous Tier 1: 2% (at age 55) of the average final 12 months compensation  Miscellaneous Tier 2 : 2% (at age 60) of the average final 12 months compensation  PEPRA Miscellaneous : 2% (at age 62) of the average final 36 months compensation Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees. An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death. Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate. Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 69 Note 9 – Defined Benefit Pension Plans (Continued) General Information about the Pension Plan (Continued) Contributions Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the measurement period ended June 30, 2014 (the measurement date), the average contribution rate were as follows: Active Employee Employer Plans Contribution Rate Contribution Rate Fire Tier 1 8.980% 44.047% Fire Tier 2 8.922% 22.145% Police Tier 1 8.986% 61.738% Police Tier 2 8.922% 22.145% Police PEPRA 11.715% 12.250% Misc. Tier 1 6.891% 18.203% Misc. Tier 2 6.880% 8.486% Misc. PEPRA 6.308% 6.250% There were no employees covered by Fire PEPRA plan for the measurement period ended June 30, 2014. Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension Actuarial Methods and Assumptions Used to Determine Total Pension Liability For the measurement period ended June 30, 2014 (the measurement date), the total pension liability was determined by rolling forward the June 30, 2013 total pension liability. Both the June 30, 2013 and the June 30, 2014 total pension liabilities were based on the following actuarial methods and assumptions: Actuarial Cost Method Actuarial Assumptions: Discount Rate Inflation Salary Increases Investment Rate of Return Mortality Rate Table Post Retirement Benefit Increase Entry Age Normal in accordance with the requirement of GASB Statement No. 68 7.50% 2.75% Varies by Entry Age and Service 7.50% Net of Pension Plan Investment and Administrative Expenses; includes Inflation Derived using CalPERS’ Membership Data for all Funds. Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 70 Note 9 – Defined Benefit Pension Plans (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Actuarial Methods and Assumptions Used to Determine Total Pension Liability (Continued) All other actuarial assumptions used in the June 30, 2013 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications. Discount Rate The discount rate used to measure the total pension liability was 7.50 percent, which is net of administrative expenses. An investment return excluding administrative expenses would have been 7.65 percent. Management has determined that using the lower discount rate has resulted in a slightly higher total pension liability and net pension liability and the difference was deemed immaterial to the financial statement. The long-term expected rate of return on pension plan investments was determined in which best-estimate ranges of expected future real rates are developed for each major asset class. In determining the long-term expected rate of return, both short- term and long-term market return expectations as well as the expected pension fund cash flows were considered. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These geometric rates of return are net of administrative expenses. New Strategic Real Return Real Return Asset Class Allocation Years 1-101 Years 11+2 Global Equity 47.00% 5.25% 5.71% Global Fixed Income 19.00 0.99 2.43 Inflation Sensitive 6.00 0.45 3.36 Private Equity 12.00 6.83 6.95 Real Estate 11.00 4.50 5.13 Infrastructure and Forestland 3.00 4.50 5.09 Liquidity 2.00 -0.55 -1.05 1An expected inflation of 2.5% used for this period 2An expected inflation of 3.0% used for this period. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 71 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.5%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.50%) or 1 percentage- point higher (8.50%) than the current rate: Discount Rate - 1% Current Discount Discount Rate + 1% (6.50%) Rate (7.50%) (8.50%) Fire Tier 1 12,113,704$ 7,758,383$ 4,169,787$ Fire Tier 2 4,500$ 2,615$ 1,062$ Police Tier 1 27,589,649$ 18,364,677$ 10,763,698$ Police Tier 2 28,018$ 16,281$ 6,611$ Police PEPRA 26$ 15$ 6$ Misc. Tier 1 16,329,566$ 10,131,058$ 4,986,886$ Misc. Tier 2 54,019$ 30,319$ 10,651$ Misc. PEPRA 519$ 291$ 102$ Plan's Net Pension Liability/(Asset) Pension Plan Fiduciary Net Position Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 72 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period: Plan Total Pension Plan Fiduciary Net Plan Net Pension Liability Position Liability/(Asset) Fire Tier 1 Balance at: 6/30/13 (Valuation date) 31,010,666$ 21,518,308$ 9,492,358$ Balance at: 6/30/14 (Measurement date) 32,515,129$ 24,756,746$ 7,758,383$ Net Changes during 2013-2014 1,504,463$ 3,238,438$ (1,733,975)$ Fire Tier 2 Balance at: 6/30/13 (Valuation date) 13,420$ 9,958$ 3,462$ Balance at: 6/30/14 (Measurement date) 14,071$ 11,456$ 2,615$ Net Changes during 2013-2014 651$ 1,498$ (847)$ Police Tier 1 Balance at: 6/30/13 (Valuation date) 65,683,457$ 43,898,749$ 21,784,708$ Balance at: 6/30/14 (Measurement date) 68,870,050$ 50,505,373$ 18,364,677$ Net Changes during 2013-2014 3,186,593$ 6,606,624$ (3,420,031)$ Police Tier 2 Balance at: 6/30/13 (Valuation date) 83,567$ 62,008$ 21,559$ Balance at: 6/30/14 (Measurement date) 87,621$ 71,340$ 16,281$ Net Changes during 2013-2014 4,054$ 9,332$ (5,278)$ Police PEPRA Balance at: 6/30/13 (Valuation date) 77$ 57$ 20$ Balance at: 6/30/14 (Measurement date) 81$ 66$ 15$ Net Changes during 2013-2014 4$ 9$ (5)$ Increase (Decrease) City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 73 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) Plan Total Pension Plan Fiduciary Net Plan Net Pension Liability Position Liability/(Asset) Misc. Tier 1 Balance at: 6/30/13 (Valuation date) 44,099,460$ 31,377,088$ 12,722,372$ Balance at: 6/30/14 (Measurement date) 46,723,803$ 36,592,745$ 10,131,058$ Net Changes during 2013-2014 2,624,343$ 5,215,657$ (2,591,314)$ Misc. Tier 2 Balance at: 6/30/13 (Valuation date) 168,613$ 127,187$ 41,426$ Balance at: 6/30/14 (Measurement date) 178,647$ 148,328$ 30,319$ Net Changes during 2013-2014 10,034$ 21,141$ (11,107)$ Misc. PEPRA Balance at: 6/30/13 (Valuation date) 1,619$ 1,221$ 398$ Balance at: 6/30/14 (Measurement date) 1,715$ 1,424$ 291$ Net Changes during 2013-2014 96$ 203$ (107)$ Increase (Decrease) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2013). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date. (2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2014). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2014 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2013-14). City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 74 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool (Continued). (3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. (4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5). The City’s proportionate share of the net pension liability was as follows: Fire Tier 1 Fire Tier 2 Police Tier 1 Police Tier 2 Police PEPRA June 30, 2013 0.19841% 0.00007% 0.45534% 0.00045% 0.00000% June 30, 2014 0.20684% 0.00007% 0.48960% 0.00043% 0.00000% Change - Increase (Decrease) 0.00843% 0.00000% 0.03426% -0.00002% 0.00000% Plans Misc. Tier 1 Misc. Tier 2 Misc. PEPRA June 30, 2013 0.38827% 0.00126% 0.00001% June 30, 2014 0.40992% 0.00123% 0.00001% Change - Increase (Decrease) 0.02165% -0.00003% 0.00000% Plans City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 75 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2015, the City recognized pension expense as follows: Fire Tier 1 606,149$ Fire Tier 2 14,586 Police Tier 1 1,471,507 Police Tier 2 38,602 Police PEPRA 35 Miscellaneous Tier 1 670,208 Miscellaneous Tier 2 68,430 Miscellaneous PEPRA 8,731 2,878,248$ The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period. The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2013-14 measurement period is 3.8 years, which was obtained by dividing the total service years of 460,700 (the sum of remaining service lifetimes of the active employees) by 122,789 (the total number of participants: active, inactive, and retired). City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 76 Note 9 – Defined Benefit Pension Plan (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) At June 30, 2015, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (1,705,917)$ Adjustment due to differences in proportions 73,435 - Difference between City contributions and proportionate share of contributions 18,898 - Total 92,333$ -$ Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (790)$ Adjustment due to differences in proportions - (14,146) Difference between City contributions and proportionate share of contributions 484 - Total 484$ (14,936)$ Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (3,480,181)$ Adjustment due to differences in proportions 109,722 - Difference between City contributions and proportionate share of contributions 255,396 - Total 365,118$ (3,480,181)$ Fire Tier 1 Fire Tier 2 Police Tier 1 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 77 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (4,916)$ Adjustment due to differences in proportions - (25,716) Difference between City contributions and proportionate share of contributions 31,437 - Total 31,437$ (30,632)$ Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (5)$ Adjustment due to differences in proportions 6,469 - Difference between City contributions and proportionate share of contributions 18,207 - Total 24,676$ (5)$ Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (2,513,505)$ Adjustment due to differences in proportions 162,975 - Difference between City contributions and proportionate share of contributions - (219,901) Total 162,975$ (2,733,406)$ Police Tier 2 Police PEPRA Misc. Tier 1 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 78 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (10,189)$ Adjustment due to differences in proportions - (46,258) Difference between City contributions and proportionate share of contributions 53,420 - Total 53,420$ (56,447)$ Deferred outflows Deferred inflows of Resources of Resources Difference between projected and actual earning on pension plan investments -$ (98)$ Adjustment due to differences in proportions - (281) Difference between City contributions and proportionate share of contributions 23,577 - Total 23,577$ (379)$ Misc. Tier 2 Misc. PEPRA City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 79 Note 9 – Defined Benefit Pension Plan (Continued) Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued) Proportionate Share of Net Pension Liability and Pension Expense (Continued) Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2016. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30,Fire Tier 1 Fire Tier 2 Police Tier 1 Police Tier 2 2016 (393,503)$ (5,076)$ (739,645)$ 815$ 2017 (393,503) (5,076) (739,645) 815 2018 (400,098) (4,101) (765,727) 404 2019 (426,480) (199) (870,046) (1,229) 2020 - - - - Thereafter - - - - (1,613,584)$ (14,452)$ (3,115,063)$ 805$ Year Ended June 30,Police PEPRA Misc. Tier 1 Misc. Tier 2 Misc. PEPRA 2016 8,812$ (648,706)$ 11$ 8,296$ 2017 8,812 (648,706) 11 8,296 2018 7,049 (644,642) (501) 6,632 2019 (2) (628,377) (2,548) (26) 2020 - - - - Thereafter - - - - 24,671$ (2,570,431)$ (3,027)$ 23,198$ Deferred Outflows/ (Inflows) of Resources Deferred Outflows/ (Inflows) of Resources City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 80 Note 10 – Other Postemployment Benefit Plan On June 12, 2007, the City Council adopted a resolution authorizing participation in a post retirement health care plan trust to be administered by Public Agency Retirement Services (“PARS”) and Union Bank of California. In July 2007, the City signed an agreement with Public Agency Retirement Services to create and administer an irrevocable trust fund for the payment of other postemployment benefits for city employees. Funds in the amount of $1,401,000 that were previously set aside were forwarded to Union Bank pursuant to the agreement to establish the trust during the year ended June 30, 2008. Contributions are made on a monthly basis. Plan Description The City participates in a post retirement health care plan trust (“Plan”) administered by PARS and Union Bank of California. The Plan provides medical insurance benefits to eligible retirees. PARS issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by contacting the City at 1315 Valley Drive, Hermosa Beach, CA 90254. The Plan is comprised of employees and retirees from several bargaining units, including General and Supervisory; Professional and Administrative Employees Association; Hermosa Beach Management Association; Police Management Association; Police Officers Association and Firefighters Association. The range of monthly benefits to be paid by the City ranges from $40 to $556 per month based on years of service from 10 years to 20 years provided to the City. The monthly benefits paid by the City are subject to change with increases provided based on age at retirement and years of service. Eligibility All of the Plan’s employees became participants in accordance with negotiated Memorandum of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. Participants of the Plan as of June 30, 2015 were as follows: Participants Total Active employees 129 Retirees 59 Total 188 Funding Policy The contribution requirements for Plan members and the City are established by a MOU as negotiated by each group or bargaining unit. The City is funding 100% of the annual required contribution as calculated based on the actuarial valuation. For the year ended June 30, 2015, the City contributed $919,944. Plan members receiving benefits contributed $218,299 of the total premiums, as their required contributions. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 81 Note 10 – Other Postemployment Benefit Plan (Continued) Annual OPEB Cost and Net OPEB Asset The City’s annual Other Postemployment Benefits (“OPEB”) cost (expense) is calculated based on the Annual Required Contribution of the Employer (“ARC”), an amount actuarially determined. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and amortize any unfunded actuarial liabilities (or funding excesses) over a period not to exceed thirty years. The following table shows the components of the City’s annual OPEB cost for the year, the amount actually contributed to the Plan, and changes in the City’s net OPEB asset: Total Annual required contribution 946,000$ Interest on net OPEB obligation (7,670) Adjustment to annual required contribution 13,202 Annual OPEB cost (expense) 951,532 Contributions made (919,944) Increase in net OPEB asset 31,588 Net OPEB asset - beginning of year (122,714) Net OPEB asset - end of year (91,126)$ The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the Plan and the net OPEB obligation for year ended June 30, 2015 and the preceding two years are as follows: Fiscal Annual % of Annual Year OPEB Actual OPEB Cost Net OPEB Ended Cost Contributions Contributed Asset 6/30/2013 888,000$ 1,007,872$ 102.33% 119,872$ 6/30/2014 923,289 926,131 100.31% 122,714 6/30/2015 951,532 919,944 96.68% 91,126 City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 82 Note 10 – Other Postemployment Benefit Plan (Continued) Funded Status and Funding Progress As of June 30, 2014, the most recent actuarial valuation date, the plan was 53.6% funded. The actuarial accrued liability for benefits was $10,714,000 and the actuarial value of assets as of June 30, 2014 was $5,747,000, resulting in an UAAL of $4,967,000. The covered payroll (annual payroll of active employees covered by the Plan) was $10,262,000 and the ratio of UAAL to the covered payroll was 48.40%. Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and assumptions about the probability of occurrence of events far into the future. Examples include assumptions about future employment, mortality, and the healthcare costs trend. Amounts determined regarding the funded status of the Plan and the ARC of the employer are subject to continual revision as actual results are compared with past expectations and new estimates are made about the future. The schedule of funding progress, presented as Required Supplementary Information following the Notes to the Basic Financial Statements, presents multi-year trend information about whether the actuarial value of plan assets is increasing or decreasing over time relative to the actuarial accrued liabilities for benefits. Actuarial Methods and Assumptions Projections of benefits for financial reporting purposes are based on the substantive Plan (the Plan as understood by the employer and the plan members) and include the types of benefits provided at the time of each valuation and the historical pattern of sharing of benefit costs between the employer and Plan members. The actuarial methods and assumptions used include techniques that are designed to reduce the effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the long-term perspective of the calculations. In the June 30, 2011 actuarial valuation, the entry age actuarial cost method was used. The actuarial assumptions include a 6.25% investment rate of return (net of administrative expenses), which is based on the expected return on funds invested, and an annual healthcare cost trend rate of 10% initially reduced by decrements to an ultimate rate of 5% thereafter. The actuarial assumption for inflation was 3%, and the aggregate payroll increases was 3.25% used in the actuarial valuation. The City’s Plan does not provide postretirement benefit increases. The UAAL is amortized as a level percentage of future payroll on a 20-year closed amortization period. The remaining amortization period at June 30, 2015 was 14 years. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 83 Note 11 – Classification of Fund Balances At June 30, 2015, fund balances are classified in the governmental funds as follows: Capital Nonmajor General Sewer Special Improvements Capital Governmental Fund Revenue Fund Projects Fund Funds Total Nonspendable Prepaid items 19,444$ -$ -$ -$ 19,444$ Total nonspendable 19,444 - - - 19,444 Restricted General Plan Maintenance Fees 171,807 - - - 171,807 Verizon PEG Grant 74,758 - - - 74,758 Greenwald Theatre Donation 45,000 - - - 45,000 Chamber Sign Donation 50,000 - - - 50,000 CDBG Fund Exchange 118,739 - - - 118,739 Lighting District - - - 34,264 34,264 Gas Tax - - - 324,643 324,643 Source Reduction/Recycling - - - 13,529 13,529 Prop A Open Space - - - 3,404 3,404 Tyco Tidelands - - - 3,653 3,653 Parks/Rec Facility Projects - - - 462,738 462,738 Undergrounding Districts - - - 36,958 36,958 Prop A, C and Measure R Transit Projects - - - 2,270,235 2,270,235 Air Quality Improvement Projects - - - 36,420 36,420 Supplemental Law Enforcement Services Funds - - - 19,962 19,962 Asset Forfeiture - Drug Enforcement and Education - - - 207,206 207,206 Fire Protection - - - 51,533 51,533 Grants - - - 263,555 263,555 Total restricted 460,304 - - 3,728,100 4,188,404 Committed In Lieu Fee- Parking Facilities 28,900 - - - 28,900 Tyco - - - 431,716 431,716 Total committed 28,900 - - 431,716 460,616 Assigned Sales Tax- Lieu 131,259 - - - 131,259 Reappropriations- Non-CIP 619,977 - - - 619,977 Public works capital improvement projects 1,447,766 - - - 1,447,766 Sewers and Storm Drains - 3,722,754 - - 3,722,754 Contingencies 4,965,437 - - - 4,965,437 Retirement Rate Stabilization 1,000,000 - - - 1,000,000 Oil Debt Service 1,000,000 - - - 1,000,000 Unspecified Contingencies 500,000 - - - 500,000 Compensated Absences 304,135 - - - 304,135 Community Events 36,466 - - - 36,466 Capital projects - - 3,924,194 - 3,924,194 Total assigned 10,005,040 3,722,754 3,924,194 - 17,651,988 Total fund balances 10,513,688$ 3,722,754$ 3,924,194$ 4,159,816$ 22,320,452$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 84 Note 12 – Non-City Obligations At June 30, 2015, 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 $400,000 were issued for the Lower Pier Avenue Assessment District for street and sidewalk improvements in the downtown area. The City is not financially obligated for payments of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2016 30,000$ 5,525$ 35,525$ 2017 35,000 3,413 38,413 2018 35,000 1,137 36,137 Total 100,000$ 10,075$ 110,075$ 1999 Myrtle Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,159,114 were issued for the Myrtle Avenue Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2016 70,000$ 18,923$ 88,923$ 2017 70,000 14,933 84,933 2018 70,000 10,925 80,925 2019 75,000 6,756 81,756 2020 80,000 2,300 82,300 Total 365,000$ 53,837$ 418,837$ City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 85 Note 12 – Non-City Obligations (Continued) 1999 Loma Utility Underground District Special Assessment Bonds In October 1999, limited obligation improvement bonds in the amount of $1,324,653 were issued for the Loma Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2016 75,000$ 21,075$ 96,075$ 2017 75,000 16,800 91,800 2018 80,000 12,362 92,362 2019 85,000 7,619 92,619 2020 90,000 2,587 92,587 Total 405,000$ 60,443$ 465,443$ 2004 Beach Drive Utility Underground Assessment District Special Assessment Bonds In July 2004, limited obligation improvement bonds in the amount of $404,341 were issued for the Beach Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2016 20,010$ 11,488$ 31,498$ 2017 20,970 10,528 31,498 2018 21,977 9,474 31,451 2019 23,032 8,394 31,426 2020 24,137 7,262 31,399 2021-2025 139,219 17,331 156,550 249,345$ 64,477$ 313,822$ 2005 Bayview Drive Utility Underground Assessment District Improvement Bonds In February 2005, limited obligation improvement bonds in the amount of $951,667 were issued for the Bayview Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 86 Note 12 – Non-City Obligations (Continued) The annual debt service requirements by year are as follows: Year ending June 30, Principal Interest Total 2016 35,288$ 20,972$ 56,260$ 2017 37,213 19,431 56,644 2018 39,219 17,707 56,926 2019 41,311 15,996 57,307 2020 43,492 14,194 57,686 2020-2024 253,553 40,480 294,033 2025-2026 58,666 1,247 59,913 Total 508,742$ 130,027$ 638,769$ Note 13 – Commitments and Contingencies A. Commitments The City had several outstanding or planned construction and other projects as of June 30, 2015. These projects are evidenced by contractual commitments with contractors and include: Commitment Project Spent to Date Remaining Force Option Simulator/Shooting Range $ 190,790 $ 190,790 Permit Software Upgrade and Integration Project 123,762 388,079 General Plan & Coastal Plan Update 563,425 454,228 Sewer Improvements Various Locations 331,599 132,599 South Park Playground Improvements 376,099 544,540 Surf Memorial Statue 124,419 244,606 Citywide Conservation Upgrades 131,494 507,961 Total 1,841,588$ 2,462,803$ Of the commitments listed above, $565,528 represents commitments in the General Fund, $14,096 represents commitments in the Sewer fund, $198,399 represents commitments in the Capital Projects Fund, $788,740 represents commitments in nonmajor funds, and $896,040 represents commitments in internal service funds. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 87 Note 13 – Commitments and Contingencies (Continued) A. Commitments (Continued) In January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure. The remainder of the funding was provided by the City’s former Downtown Enhancement Enterprise Fund and Prop A Open Space funding contributed by the Los Angeles County Department of Beaches and Harbors (“County”). In consideration of the County contribution, 50% of the annual net income derived from the parking structure must be shared with the County each year by September 1. The payment made to the County for fiscal year 2014-2015 is $323,533. B. Contingencies The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty. C. Grants Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies. While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City. Note 14 – MacPherson Oil Project Litigation The City entered into a lease with MacPherson Oil in 1992 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 Appeals, in a final opinion, ruled otherwise. MacPherson then 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 $500 million. In its motion, the City contended that because the Court of Appeals 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, it is 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 appealed this ruling to the Court of appeals, and in an unpublished decision issued in November 2005, the Court of Appeals reversed, rejecting many of the City's defenses and remanding the case back to the trial court for trial. The City's petition to the Supreme Court for review of this decision was denied. The case returned to the trial court in early 2006 and was assigned to a new judge, JoAnne O'Donnell, because MacPherson filed a timely objection to the previous Superior Court judge. The City engaged new trial counsel to defend it in the trial of this case, the Century City law firm of Bird Marella. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 88 Note 14 – MacPherson Oil Project Litigation (Continued) MacPherson filed a motion to amend its cross-complaint to add causes of action for inverse condemnation and civil rights. Judge O'Donnell denied the motion, ruling that it was barred by laches due to the passage of time since the original cross-complaint was filed. The City filed a motion to bifurcate the trial, so that liability issues can be litigated first, and the damages phase litigated only if MacPherson prevails in the liability phase. Judge O’Donnell granted the motion over MacPherson’s strenuous objections. Thereafter, the parties actively engaged in pretrial discovery regarding liability, including production of documents, exchanges of interrogatories, and depositions of witnesses. Cross-motions for summary judgment on liability were filed and heard, and in early 2008 Judge O'Donnell denied the City's motion and granted MacPherson’s motion, ruling that the City bore the risk of a breach by way of Proposition E and that the "compliance with all laws" clause in the lease does not provide the City with a defense. The City's petitions to the Court of Appeal and the California Supreme Court seeking review of that decision were both denied. On October 16, 2008, Judge O'Donnell scheduled a trial date for the damages phase of the trial for August 12, 2009 (later continued to September 2, 2009). In July, 2009, the City brought another motion for summary adjudication on the issue of causation in order to limit the City's liability in damages; the basis of the motion was that the City Council had a contractual right to terminate the oil project in September, 1998 on the ground that it was hazardous. Judge O'Donnell denied the motion and the City petitioned the Court of Appeal for a writ, which was granted. The Court of Appeal vacated the trial date, ordered further briefing and scheduled an oral argument on the writ for December 7, 2009. Following oral argument, the Court of Appeal ruled that the City possessed the legal authority in 1998 to stop the oil project for safety reasons, but further held that the question of whether there was substantial evidence to support that decision (or whether the safety justification in support of that decision was merely pretextual) was a matter to be tried before a jury. The City filed a petition with the California Supreme Court seeking review of that decision, arguing that relegation of that decision to a jury necessarily involved an invasion of the deliberative process privilege in contravention of established law, and that the City’s 1998 decision to stop the project should be affirmed based on the record. Review was not granted, and the case was back on track for a jury trial. Trial was scheduled for January 18, 2012, but then continued to April 2012. In March 2012, the Hermosa Beach City Council unanimously voted to enter into a settlement agreement with Macpherson, ending the litigation. The settlement included a third party – E&B Natural Resources Management Corporation (“E&B”) – which has assumed all of Macpherson’s rights under the original lease and City entitlements and intends to attempt to resurrect the oil drilling project. Pursuant to the terms of the settlement, the residents of Hermosa Beach were asked by way of ballot Measure O at March 3, 2015 special election whether the City-wide ban on oil drilling should be modified to allow a new oil and natural gas production project proposed by E&B within the City limits. The ballot measure failed. Consequently, under the settlement the City owed E&B $17.5 million to be paid on “commercially reasonable” terms. The City paid E&B $6,000,000 during the year ended June 30, 2015 and the remaining principal in the amount of $11,500,000 on August 13,2015. E&B contends that interest on the $17.5 million commenced to run in March 2012, when the settlement agreement was executed; the City disagrees. The parties have been negotiating over that dispute and as of this writing it remains unresolved. The dispute may proceed to litigation if it is not resolved through negotiation. City of Hermosa Beach Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2015 89 Note 15 – Subsequent Events A. Hermosa Beach Financing Authority On July 14, 2015, the City formed the Hermosa Beach Financing Authority to establish the structure required for the lease revenue bond. See Notes 15B for issuance of the 2015 Lease Revenue Bonds. B. Bond issuance On July 23, 2015, the City issued Hermosa Beach Public Financing authority 2015 Lease Revenue Bonds (2015 Bonds) in the amount of $11,600,000. The 2015 Bonds were issued to make certain payments pursuant to a settlement agreement with E & B Natural Resources. See Note 14. C. MOU Memorandums of Understanding for all six bargaining units were approved on October 27, 2015 by the City Council. A resolution for unrepresented employees was also approved. A 5% increase was made to all positions retroactive to July 1, 2015. This is the first pay increase for employees since 2008-09. Note 16 – Prior Period Adjustments As a result of the implementation of GASB Statements No. 68 and 71, net position as of July 1, 2014 was restated as follows: Governmental Activities Beginning Net Position, as previously reported 92,292,790$ Prior period adjustments: Report pension contributions made during the measurement period as deferred outflows of resources due to implementation of GASB 71 3,373,029 Report net pension liability due to the implementation of GASB 68 (44,066,303) Beginning Net Position, as restated 51,599,516$ 90 This page intentionally left blank 91 REQUIRED SUPPLEMENTARY INFORMATION (UNAUDITED) City of Hermosa Beach Required Supplementary Information (Unaudited) Budgetary Comparison Schedule – General Fund For the Year Ended June 30, 2015 92 Actual Variance with Original Final Amounts Final Budget Fund balance, July 1, 2014 8,105,002$ 8,105,002$ 8,105,002$ -$ Resources (inflows): Property taxes 11,214,492 13,598,147 13,739,649 141,502 Other taxes 11,620,015 9,641,415 9,948,170 306,755 Licenses and permits 795,240 793,944 916,073 122,129 Fines and forfeitures 2,748,289 2,750,789 2,600,786 (150,003) Use of money and property 760,508 752,708 768,912 16,204 Intergovernmental 119,341 144,460 298,001 153,541 Charges for services 6,221,771 6,454,059 6,941,275 487,216 Miscellaneous 249,858 283,459 252,854 (30,605) Interest earned on investments 109,927 125,265 152,544 27,279 Transfers in 345,641 345,641 351,104 5,463 Amount available for appropriation 34,185,082 42,994,889 44,074,370 1,079,481 Charges to appropriations (outflows): Legislative and legal 995,829 1,124,614 1,170,229 (45,615) General government 5,239,249 3,492,171 2,960,379 531,792 Public safety 17,187,410 19,413,985 18,009,359 1,404,626 Community development 1,509,512 1,513,871 1,529,958 (16,087) Culture and recreation 1,221,058 1,221,058 1,217,620 3,438 Public works 3,546,135 4,501,949 4,166,087 335,862 Capital outlay 2,753,807 2,595,200 1,010,144 1,585,056 Transfers out 856,832 886,464 3,496,906 (2,610,442) Total charges to appropriations 33,309,832 34,749,312 33,560,682 1,188,630 Fund balance, June 30, 2015 875,250$ 8,245,577$ 10,513,688$ 2,268,111$ Budgeted Amounts City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule – Sewer Special Revenue Fund For the Year Ended June 30, 2015 93 Actual Variance with Original Final Amounts Final Budget Fund balance, July 1, 2014 693,145$ 693,145$ 693,145$ -$ Resources (inflows): Intergovernmental 15,422 15,422 15,321 (101) Charges for services 30,000 31,500 74,958 43,458 Miscellaneous 0 - 40,000 40,000 Interest earned on investments 10,822 11,392 20,056 8,664 Transfers in 850,353 3,914,256 3,914,256 - Amount available for appropriation 1,599,742 4,665,715 4,757,736 92,021 Charges to appropriations (outflows): Public works 826,245 902,806 572,751 330,055 Capital outlay - 517,704 462,231 55,473 Total charges to appropriations 826,245 1,420,510 1,034,982 385,528 Fund balance, June 30, 2015 773,497$ 3,245,205$ 3,722,754$ 477,549$ Budgeted Amounts City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2015 94 Budgetary Control and Accounting Policy Budgets are annually adopted for all governmental and proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the “annual appropriated budget.” The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund; however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level. Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, “final” budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year. Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year-end. June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.12468% City's Proportionate Share of the Net Pension Liability/(Asset) 7,758,383$ City's Covered-Employee Payroll 1,783,299$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 435.06% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 76.14% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00004% City's Proportionate Share of the net Pension Liability/(Asset) 2,615$ City's Covered-Employee Payroll 73,146$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 3.58% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 81.42% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00000% City's Proportionate Share of the net Pension Liability/(Asset) -$ City's Covered-Employee Payroll -$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 0.00% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 81.48% City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios California Public Employees' Retirement System ("CalPERS") Fire PEPRA Plan 1 Historical information is required only for measurement periods for which GASB 68 is applicable. The fiscal year 2015 was the first year of implementation, therefore only one year is shown. For the Year Ended June 30, 2015 California Public Employees' Retirement System ("CalPERS") Fire Tier I Plan California Public Employees' Retirement System ("CalPERS") Fire Tier II Plan Last Ten Fiscal Years 95 June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.29514% City's Proportionate Share of the net Pension Liability/(Asset) 18,364,677$ City's Covered-Employee Payroll 2,865,270$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 640.94% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 73.33% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00026% City's Proportionate Share of the net Pension Liability/(Asset) 16,281$ City's Covered-Employee Payroll 201,594$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 8.08% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 81.42% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00000% City's Proportionate Share of the net Pension Liability/(Asset) 15$ City's Covered-Employee Payroll 61,961$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 0.02% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 81.48% Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2015 Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Police PEPRA Plan California Public Employees' Retirement System ("CalPERS") Police Tier I Plan California Public Employees' Retirement System ("CalPERS") Police Tier II Plan 1 Historical information is required only for measurement periods for which GASB 68 is applicable. The fiscal year 2015 was the first year of implementation, therefore only one year is shown. City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) 96 June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.16281% City's Proportionate Share of the net Pension Liability/(Asset) 10,131,058$ City's Covered-Employee Payroll 4,055,478$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 249.81% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 78.32% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00049% City's Proportionate Share of the net Pension Liability/(Asset) 30,319$ City's Covered-Employee Payroll 876,441$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 3.46% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 83.03% June 30, 2014 1 City's Proportion of the Net Pension Liability/(Asset) 0.00000% City's Proportionate Share of the net Pension Liability/(Asset) 291$ City's Covered-Employee Payroll 244,669$ City's Proportionate Share of the Net Pension Liability/(Asset) as a Percentage of Its Covered-Employee Payroll 0.12% Plan's Proportionate Share of the Fiduciary Net Position as a Percentage of the Total Pension Liability 83.03% Last Ten Fiscal Years City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios (Continued) For the Year Ended June 30, 2015 California Public Employees' Retirement System ("CalPERS") Miscellaneous PEPRA Plan California Public Employees' Retirement System ("CalPERS") Miscellaneous Tier I Plan California Public Employees' Retirement System ("CalPERS") Miscellaneous Tier II Plan 1 Historical information is required only for measurement periods for which GASB 68 is applicable. The fiscal year 2015 was the first year of implementation, therefore only one year is shown. 97 2014-15 2013-141 Actuarially Determined Contribution2 759,620$ 726,540$ Contribution in Relation to the Actuarially Determined Contribution 2 (759,620) (726,540) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 1,836,798$ 1,783,299$ Contributions as a Percentage of Covered-Employee Payroll 41.36% 40.74% 2014-15 2013-141 Actuarially Determined Contribution2 -$ 981$ Contribution in Relation to the Actuarially Determined Contribution 2 - (981) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 -$ 73,146$ Contributions as a Percentage of Covered-Employee Payroll 0.00% 1.34% 2014-15 2013-141 Actuarially Determined Contribution2 11,264$ -$ Contribution in Relation to the Actuarially Determined Contribution 2 (11,264) - Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,5 91,923$ -$ Contributions as a Percentage of Covered-Employee Payroll 12.25% 0.00% Last Ten Fiscal Years City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Contributions For the Year Ended June 30, 2015 California Public Employees' Retirement System ("CalPERS") Fire Tier I Plan California Public Employees' Retirement System ("CalPERS") Fire Tier II Plan California Public Employees' Retirement System ("CalPERS") Fire PEPRA Plan 98 2014-15 2013-141 Actuarially Determined Contribution2 1,977,042$ 1,776,475$ Contribution in Relation to the Actuarially Determined Contribution 2 (1,977,042) (1,776,475) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 2,951,228$ 2,865,270$ Contributions as a Percentage of Covered-Employee Payroll 66.99% 62.00% 2014-15 2013-141 Actuarially Determined Contribution2 42,151$ 44,685$ Contribution in Relation to the Actuarially Determined Contribution 2 (42,151) (44,685) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 207,642$ 201,594$ Contributions as a Percentage of Covered-Employee Payroll 20.30% 22.17% 2014-15 2013-141 Actuarially Determined Contribution2 52,343$ 24,711$ Contribution in Relation to the Actuarially Determined Contribution 2 (52,343) (24,711) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 63,820$ 61,961$ Contributions as a Percentage of Covered-Employee Payroll 82.02% 39.88% Last Ten Fiscal Years City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Contributions (Continued) For the Year Ended June 30, 2015 California Public Employees' Retirement System ("CalPERS") Police Tier I Plan California Public Employees' Retirement System ("CalPERS") Police Tier II Plan California Public Employees' Retirement System ("CalPERS") Police PEPRA Plan 99 2014-15 2013-141 Actuarially Determined Contribution2 738,563$ 691,091$ Contribution in Relation to the Actuarially Determined Contribution 2 (738,563) (691,091) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 4,177,142$ 4,055,478$ Contributions as a Percentage of Covered-Employee Payroll 17.68% 17.04% 2014-15 2013-141 Actuarially Determined Contribution2 90,048$ 76,510$ Contribution in Relation to the Actuarially Determined Contribution 2 (90,048) (76,510) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 902,734$ 876,441$ Contributions as a Percentage of Covered-Employee Payroll 9.98% 8.73% 2014-15 2013-141 Actuarially Determined Contribution2 54,882$ 32,036$ Contribution in Relation to the Actuarially Determined Contribution 2 (54,882) (32,036) Contribution Deficiency (Excess)-$ -$ Covered-Employee Payroll3,4 252,009$ 244,669$ Contributions as a Percentage of Covered-Employee Payroll 21.78% 13.09% Last Ten Fiscal Years California Public Employees' Retirement System ("CalPERS") Miscellaneous Tier I Plan California Public Employees' Retirement System ("CalPERS") Miscellaneous Tier II Plan California Public Employees' Retirement System ("CalPERS") Miscellaneous PEPRA Plan City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Contributions (Continued) For the Year Ended June 30, 2015 100 2012-13 Covered-Employee Payroll Fire Tier 1 $ 1,731,359 Fire Tier 2 71,016 Police Tier 1 2,781,816 Police Tier 2 195,722 Police PEPRA 60,156 Miscellaneous Tier 1 3,937,357 Miscellaneous Tier 2 850,914 Miscellaneous PEPRA 237,543 Change in Benefit Terms: The figures above do not include any liability impact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a Golden Handshakes). 5 Payroll for Fire PEPRA plan obtained from payroll record from the City. No valuation report was available due to having no covered employee for June 30, 2013 valuation period. 1 Historical information is required only for measurement periods for which GASB 68 is applicable. The fiscal year 2015 was the first year of implementation, therefore only one year and the measure period are shown. 2 Employers are assumed to make contributions equal to the actuarially determined contributions (which is the actuarially determined contribution). However, some employers may choose to make additional contributions towards their side fund or their unfunded liability. Employer contributions for such plans exceed the actuarially determined contributions. CalPERS has determined that employer obligations referred to as “side funds” are not considered separately financed specific liabilities. 3 Covered-Employee Payroll represented above is based on pensionable earnings provided by the employer. However, GASB 68 defines covered- employee payroll as the total payroll of employees that are provided pensions through the pension plan. Accordingly, if pensionable earnings are different than total earnings for covered-employees, the employer should display in the disclosure footnotes the payroll based on total earnings for the covered group and recalculate the required payroll-related ratios. 4 Payroll from prior year was assumed to increase by the 3.00% payroll growth assumption City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of the City's Contributions (Continued) Changes of Assumptions: There were no changes in assumptions. For the Year Ended June 30, 2015 Notes to Schedule 101 City of Hermosa Beach Required Supplementary Information (Unaudited) (Continued) Schedule of Funding Progress – Other Postemployment Benefits For the Year Ended June 30, 2015 102 The schedule of funding progress for the past three actuarial valuations is presented below: Actuarial Actuarial Value Entry Age Actuarial Accrued Liability Funded Covered UAAL as a % Valuation of Assets Accrued Liability ("UAAL") Ratio Payroll of Payroll Date (A) (B) (A - B) (A / B) (C) (A - B) / C 6/30/2008 1,890,000$ 5,830,000$ (3,940,000)$ 32.4% 9,182,000$ 42.91% 6/30/2011 3,491,000 10,221,000 (6,730,000) 34.2% 9,030,000 74.53% 6/30/2014 5,747,000 10,714,000 (4,967,000) 53.6% 10,262,000 48.40% SUPPLEMENTARY INFORMATION 103 This page intentionally left blank. 104 NONMAJOR GOVERNMENTAL FUNDS Special Revenue Funds: Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679. State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund. AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element. Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities. Tyco Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity. Tyco Tidelands Fund - This fund is used to account for the portion of the funds specific to the tidelands and submerged lands received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach that were set aside to build one new restroom and rehabilitate three existing restrooms at the beach. Parks/Recreation Facilities Tax Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities. Bayview Drive Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Bayview Utility Underground Special Assessment District. Lower Pier Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Lower Pier 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 administrativeexpenditures required for the Loma Drive Utility Underground Special Assessment District. Beach Drive Assessment District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District. 105 NONMAJOR GOVERNMENTAL FUNDS (Continued) Special Revenue Funds (Continued): 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 for seniors, a taxi voucher program, a commuter bus, special event and after school program shuttles and subsidizes bus passes for senior citizens and students. Proposition "C" Fund - This is a fund which was added during 1992 to account for funds allocated from the voter-approved 1/2 cent sales tax. Funds must be used for transit purposes. Measure "R" Fund - This is a fund which was added July 1, 2009 to account for a 1/2 cent sales tax approved by Los Angeles County voters in November 2008 to meet the transportation needs of Los Angeles County. The program is to be used for transportation projects that have been approved by the Los Angeles County Metropolitan Transit Authority. Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles. Supplemental Law Enforcement Services Fund - This fund is used to account for funds received from the Citizen Option for Public Safety ("COPS") program, established by the State Legislature in fiscal year 1996-1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding. Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations. Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system in the City and for upgrades to fire facilities. 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. The fund was closed on July 1, 2014 and all assets and liabilities were transferred to the General Fund. Grants Special Revenue Fund - This fund is used to account for State and Federal grants for specific projects and for smaller grants from miscellaneous sources. 106 This page intentionally left blank. 107 Lighting and Landscaping State Prop A District Gas Tax AB 939 Open Space ASSETS Cash and investments 66,107$ 279,702$ 34,750$ -$ Accounts receivable 2,489 53,507 388 176,697 Property taxes receivable, net 6,757 - - - Reimbursable grants receivable - - - - Interest receivable 174 643 7 - Total assets 75,527$ 333,852$ 35,145$ 176,697$ Liabilities: Accounts payable 32,137$ 9,209$ 17,500$ 3,315$ Accrued wages and benefits payable 9,126 - 4,116 - Due to other funds - - - 169,978 Total liabilities 41,263 9,209 21,616 173,293 Fund Balances: Restricted 34,264 324,643 13,529 3,404 Committed - - - - Total fund balances 34,264 324,643 13,529 3,404 Total liabilities, deferred outflows of resources and fund balances 75,527$ 333,852$ 35,145$ 176,697$ (Continued) City of Hermosa Beach Combining Balance Sheet Nonmajor Governmental Funds June 30, 2015 Special Revenue Funds LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 108 Parks/ Bayview Drive Tyco Recreation Administrative Tyco Tidelands Facilities Tax Expense ASSETS Cash and investments 560,824$ 3,646$ 548,028$ 1,356$ Accounts receivable - - 1,450 - Property taxes receivable, net - - - - Reimbursable grants receivable - - - - Interest receivable 1,373 7 1,172 3 Total assets 562,197$ 3,653$ 550,650$ 1,359$ Liabilities: Accounts payable 130,481$ -$ 87,912$ 771$ Accrued wages and benefits payable - - - - Due to other funds - - - - Total liabilities 130,481 - 87,912 771 Fund Balances: Restricted - 3,653 462,738 588 Committed 431,716 - - - Total fund balances 431,716 3,653 462,738 588 Total liabilities, deferred outflows of resources and fund balances 562,197$ 3,653$ 550,650$ 1,359$ (Continued) City of Hermosa Beach Combining Balance Sheet (Continued) Special Revenue Funds Nonmajor Governmental Funds June 30, 2015 LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 109 Beach Drive Lower Pier Myrtle District Loma District Assessment Administrative Administrative Administrative District Expense Expense Expense Admin Expense ASSETS Cash and investments 4,184$ 12,577$ 18,330$ 2,531$ Accounts receivable - - - - Property taxes receivable, net - - - - Reimbursable grants receivable - - - - Interest receivable - 29 42 6 Total assets 4,184$ 12,606$ 18,372$ 2,537$ Liabilities: Accounts payable 300$ 605$ 73$ 351$ Accrued wages and benefits payable - - - - Due to other funds - - - - Total liabilities 300 605 73 351 Fund Balances: Restricted 3,884 12,001 18,299 2,186 Committed - - - - Total fund balances 3,884 12,001 18,299 2,186 Total liabilities, deferred outflows of resources and fund balances 4,184$ 12,606$ 18,372$ 2,537$ (Continued) Nonmajor Governmental Funds Special Revenue Funds City of Hermosa Beach Combining Balance Sheet (Continued) June 30, 2015 LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 110 Air Quality Proposition "A" Management Transit Proposition "C" Measure "R" District ASSETS Cash and investments 770,168$ 777,483$ 766,941$ 36,472$ Accounts receivable - - - - Property taxes receivable, net - - - - Reimbursable grants receivable - - - - Interest receivable 1,574 1,695 1,455 58 Total assets 771,742$ 779,178$ 768,396$ 36,530$ Liabilities: Accounts payable 27,487$ 14,650$ 6,429$ -$ Accrued wages and benefits payable 327 - 188 110 Due to other funds - - - - Total liabilities 27,814 14,650 6,617 110 Fund Balances: Restricted 743,928 764,528 761,779 36,420 Committed - - - - Total fund balances 743,928 764,528 761,779 36,420 Total liabilities, deferred outflows of resources and fund balances 771,742$ 779,178$ 768,396$ 36,530$ (Continued) June 30, 2015 Special Revenue Funds City of Hermosa Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 111 Supplemental Law Asset Enforcement Seizure and Fire Services Forfeiture Protection ASSETS Cash and investments 20,366$ 196,443$ 51,430$ Accounts receivable - 10,457 - Property taxes receivable, net - - - Reimbursable grants receivable - - - Interest receivable 154 490 103 Total assets 20,520$ 207,390$ 51,533$ Liabilities: Accounts payable 558$ 184$ -$ Accrued wages and benefits payable - - - Due to other funds - - - Total liabilities 558 184 - Fund Balances: Restricted 19,962 207,206 51,533 Committed - - - Total fund balances 19,962 207,206 51,533 Total liabilities, deferred outflows of resources and fund balances 20,520$ 207,390$ 51,533$ (Continued) Special Revenue Funds Nonmajor Governmental Funds June 30, 2015 City of Hermosa Beach Combining Balance Sheet (Continued) LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 112 Artesia Total Nonmajor Boulevard Governmental Relinquishment Grants Funds ASSETS Cash and investments -$ 55,086$ 4,206,424$ Accounts receivable - - 244,988 Property taxes receivable, net - - 6,757 Reimbursable grants receivable - 496,149 496,149 Interest receivable - - 8,985 Total assets -$ 551,235$ 4,963,303$ Liabilities: Accounts payable -$ 174,488$ 506,450$ Accrued wages and benefits payable - 44 13,911 Due to other funds - 113,148 283,126 Total liabilities - 287,680 803,487 Fund Balances: Restricted - 263,555 3,728,100 Committed - - 431,716 Total fund balances - 263,555 4,159,816 Total liabilities, deferred outflows of resources and fund balances -$ 551,235$ 4,963,303$ (Concluded) Special Revenue Funds City of Hermosa Beach Combining Balance Sheet (Continued) Nonmajor Governmental Funds June 30, 2015 LIABILITIES, DEFERRED OUTFLOWS OF RESOURCES, AND FUND BALANCES 113 Lighting and Prop A Landscaping State Open District Gas Tax AB 939 Space REVENUES: Property taxes 458,405$ -$ -$ -$ Other taxes - - - - Fines and forfeitures - - - - Use of money and property - - - - Intergovernmental - 551,885 - 151,031 Charges for services - - 60,031 - Miscellaneous - - - - Interest earned on investments 388 2,891 36 - Total revenues 458,793 554,776 60,067 151,031 EXPENDITURES: Current: General government - - 46,538 - Public safety - - - - Community development - - - - Culture and recreation - - - - Public works 512,282 20,581 - - Capital outlay - 272,514 - 130,474 Total expenditures 512,282 293,095 46,538 130,474 REVENUES OVER (UNDER) EXPENDITURES (53,489) 261,681 13,529 20,557 OTHER FINANCING SOURCES (USES): Transfers in 36,111 - - - Transfers out (8,345) (297,972) - (20,557) Total other financing sources (uses)27,766 (297,972) - (20,557) CHANGES IN FUND BALANCES (25,723) (36,291) 13,529 - FUND BALANCES: Beginning of year 59,987 360,934 - 3,404 End of year 34,264$ 324,643$ 13,529$ 3,404$ (Continued) For the Year Ended June 30, 2015 Nonmajor Governmental Funds City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds 114 Parks/ Bayview Drive Tyco Recreation Administrative Tyco Tidelands Facility Tax Expense REVENUES: Property taxes -$ -$ -$ -$ Other taxes - - - - Fines and forfeitures - - - - Use of money and property 318,845 - - - Intergovernmental - - - - Charges for services - - 216,625 - Miscellaneous - - - 4,350 Interest earned on investments 8,884 36 6,881 24 Total revenues 327,729 36 223,506 4,374 EXPENDITURES: Current: General government - - - 1,942 Public safety - - - - Community development - - - - Culture and recreation - - - - Public works - - - - Capital outlay 323,156 - 252,448 - Total expenditures 323,156 - 252,448 1,942 REVENUES OVER (UNDER) EXPENDITURES 4,573 36 (28,942) 2,432 OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - (3,653) Total other financing sources (uses)- - - (3,653) CHANGES IN FUND BALANCES 4,573 36 (28,942) (1,221) FUND BALANCES: Beginning of year 427,143 3,617 491,680 1,809 End of year 431,716$ 3,653$ 462,738$ 588$ (Continued) Special Revenue Funds City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2015 115 Beach Drive Lower Pier Myrtle District Loma District Assessment Administrative Administrative Administrative District Expense Expense Expense Admin Expense REVENUES: Property taxes -$ -$ -$ -$ Other taxes - - - - Fines and forfeitures - - - - Use of money and property 1 - - - Intergovernmental - - - - Charges for services - - - - Miscellaneous 2,600 9,000 10,000 3,000 Interest earned on investments - 179 254 37 Total revenues 2,601 9,179 10,254 3,037 EXPENDITURES: Current: General government 1,271 5,775 5,454 1,451 Public safety - - - - Community development - - - - Culture and recreation - - - - Public works - - - - Capital outlay - - - - Total expenditures 1,271 5,775 5,454 1,451 REVENUES OVER (UNDER) EXPENDITURES 1,330 3,404 4,800 1,586 OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out (2,249) (5,264) (5,710) (1,891) Total other financing sources (uses)(2,249) (5,264) (5,710) (1,891) CHANGES IN FUND BALANCES (919) (1,860) (910) (305) FUND BALANCES: Beginning of year 4,803 13,861 19,209 2,491 End of year 3,884$ 12,001$ 18,299$ 2,186$ (Continued) For the Year Ended June 30, 2015 Special Revenue Funds City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds 116 Air Quality Proposition "A" Management Transit Proposition "C" Measure "R" District REVENUES: Property taxes -$ -$ -$ -$ Other taxes 347,569 288,054 294,054 - Fines and forfeitures - - - - Use of money and property - - - - Intergovernmental - - - 24,504 Charges for services 7,065 - - - Miscellaneous - - 190,000 - Interest earned on investments 8,878 11,131 6,733 255 Total revenues 363,512 299,185 490,787 24,759 EXPENDITURES: Current: General government 15,251 - - 2,365 Public safety 70,829 - - - Community development 15,836 - - - Culture and recreation 28,912 - - - Public works - 8,323 3,184 - Capital outlay - 285,285 67,149 - Total expenditures 130,828 293,608 70,333 2,365 REVENUES OVER (UNDER) EXPENDITURES 232,684 5,577 420,454 22,394 OTHER FINANCING SOURCES (USES): Transfers in - - - - Transfers out - - - - Total other financing sources (uses)- - - - CHANGES IN FUND BALANCES 232,684 5,577 420,454 22,394 FUND BALANCES: Beginning of year 511,244 758,951 341,325 14,026 End of year 743,928$ 764,528$ 761,779$ 36,420$ (Continued) For the Year Ended June 30, 2015 Nonmajor Governmental Funds City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Special Revenue Funds 117 Supplemental Law Asset Enforcement Seizure and Fire Services Forfeiture Protection REVENUES: Property taxes -$ -$ -$ Other taxes 114,530 - - Fines and forfeitures - 51,407 - Use of money and property - - - Intergovernmental - - - Charges for services - - 18,455 Miscellaneous - - - Interest earned on investments 1,838 3,682 548 Total revenues 116,368 55,089 19,003 EXPENDITURES: Current: General government - - - Public safety 59,387 3,383 - Community development - - - Culture and recreation - - - Public works - - - Capital outlay 234,640 166,913 - Total expenditures 294,027 170,296 - REVENUES OVER (UNDER) EXPENDITURES (177,659) (115,207) 19,003 OTHER FINANCING SOURCES (USES): Transfers in - - - Transfers out - - - Total other financing sources (uses)- - - CHANGES IN FUND BALANCES (177,659) (115,207) 19,003 FUND BALANCES: Beginning of year 197,621 322,413 32,530 End of year 19,962$ 207,206$ 51,533$ (Continued) Nonmajor Governmental Funds For the Year Ended June 30, 2015 Special Revenue Funds City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 118 Total Nonmajor Artesia Boulevard Governmental Relinquishment Grants Funds REVENUES: Property taxes -$ -$ 458,405$ Other taxes - - 1,044,207 Fines and forfeitures - - 51,407 Use of money and property - - 318,846 Intergovernmental - 250,107 977,527 Charges for services - - 302,176 Miscellaneous - 176,243 395,193 Interest earned on investments - - 52,675 Total revenues - 426,350 3,600,436 EXPENDITURES: Current: General government - - 80,047 Public safety - - 133,599 Community development - 176,719 192,555 Culture and recreation - - 28,912 Public works - 34,333 578,703 Capital outlay - 203,743 1,936,322 Total expenditures - 414,795 2,950,138 REVENUES OVER (UNDER) EXPENDITURES - 11,555 650,298 OTHER FINANCING SOURCES (USES): Transfers in - - 36,111 Transfers out (5,463) - (351,104) Total other financing sources (uses)(5,463) - (314,993) CHANGES IN FUND BALANCES (5,463) 11,555 335,305 FUND BALANCES: Beginning of year 5,463 252,000 3,824,511 End of year -$ 263,555$ 4,159,816$ (Concluded) For the Year Ended June 30, 2015 Special Revenue Fund City of Hermosa Beach Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds 119 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 59,987$ 59,987$ -$ Resources (inflows): Property taxes 458,600 458,405 (195) Interest earned on investments 369 388 19 Transfers in 36,111 36,111 - Amount available for appropriation 555,067 554,891 (176) Charges to appropriations (outflows): Public works 546,722 512,282 34,440 Transfers out 8,345 8,345 - Total charges to appropriations 555,067 520,627 34,440 Fund balance, June 30, 2015 -$ 34,264$ 34,264$ City of Hermosa Beach For the Year Ended June 30, 2015 Lighting and Landscaping District Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual 120 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 360,934$ 360,934$ -$ Resources (inflows): Intergovernmental 566,903 551,885 (15,018) Interest earned on investments 2,715 2,891 176 Amount available for appropriation 930,552 915,710 (14,842) Charges to appropriations (outflows): Public Works 23,413 20,581 2,832 Capital outlay 512,253 272,514 239,739 Transfers out 297,972 297,972 - Total charges to appropriations 833,638 591,067 242,571 Fund balance, June 30, 2015 96,914$ 324,643$ 227,729$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 State Gas Tax 121 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 -$ -$ -$ Resources (inflows): Charges for services 61,130 60,031 (1,099) Interest earned on investments 12 36 24 Amount available for appropriation 61,142 60,067 (1,075) Charges to appropriations (outflows): General government 59,372 46,538 12,834 Total charges to appropriations 59,372 46,538 12,834 Fund balance, June 30, 2015 1,770$ 13,529$ 11,759$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 AB 939 122 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 3,404$ 3,404$ -$ Resources (inflows): Intergovernmental 145,110 151,031 5,921 Amount available for appropriation 148,514 154,435 5,921 Charges to appropriations (outflows): Capital outlay 127,957 130,474 (2,517) Transfers out 20,557 20,557 - Total charges to appropriations 148,514 151,031 (2,517) Fund balance, June 30, 2015 -$ 3,404$ 3,404$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Prop A Open Space 123 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 427,143$ 427,143$ -$ Resources (inflows): Use of money and property 318,845 318,845 - Interest earned on investments 6,980 8,884 1,904 Amount available for appropriation 752,968 754,872 1,904 Charges to appropriations (outflows): Capital outlay 744,275 323,156 421,119 Total charges to appropriations 744,275 323,156 421,119 Fund balance, June 30, 2015 8,693$ 431,716$ 423,023$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Tyco 124 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 3,617$ 3,617$ -$ Resources (inflows): Interest earned on investments 28 36 8 Amount available for appropriation 3,645 3,653 8 Charges to appropriations (outflows): Capital outlay 3,318 - 3,318 Total charges to appropriations 3,318 - 3,318 Fund balance, June 30, 2015 327$ 3,653$ 3,326$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Tyco Tidelands 125 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 491,680$ 491,680$ -$ Resources (inflows): Other taxes 7,019 - (7,019) Charge for services 219,261 216,625 (2,636) Interest earned on investments 5,828 6,881 1,053 Amount available for appropriation 723,788 715,186 (8,602) Charges to appropriations (outflows): Public works 46,993 46,993 Capital outlay 675,896 252,448 423,448 Total charges to appropriations 722,889 252,448 470,441 Fund balance, June 30, 2015 899$ 462,738$ 461,839$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Parks/Recreation Facilities Tax 126 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 1,809$ 1,809$ -$ Resources (inflows): Miscellaneous 4,350 4,350 - Interest earned on investments 22 24 2 Amount available for appropriation 6,181 6,183 2 Charges to appropriations (outflows): General government 2,528 1,942 586 Transfers out 3,653 3,653 - Total charges to appropriations 6,181 5,595 586 Fund balance, June 30, 2015 -$ 588$ 588$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Bayview Drive Administrative Expense 127 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 4,803$ 4,803$ -$ Resources (inflows): Miscellaneous 2,600 2,600 - Interest earned on investments - 1 1 Amount available for appropriation 7,403 7,404 1 Charges to appropriations (outflows): General government 1,813 1,271 542 Transfers out 2,249 2,249 - Total charges to appropriations 4,062 3,520 542 Fund balance, June 30, 2015 3,341$ 3,884$ 543$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Lower Pier Administrative Expense 128 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 13,861$ 13,861$ -$ Resources (inflows): Miscellaneous 9,000 9,000 - Interest earned on investments 166 179 13 Amount available for appropriation 23,027 23,040 13 Charges to appropriations (outflows): General government 6,760 5,775 985 Transfers out 5,264 5,264 - Total charges to appropriations 12,024 11,039 985 Fund balance, June 30, 2015 11,003$ 12,001$ 998$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Myrtle District Administrative Expense 129 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 19,209$ 19,209$ -$ Resources (inflows): Miscellaneous 10,000 10,000 - Interest earned on investments 234 254 20 Amount available for appropriation 29,209 29,463 254 Charges to appropriations (outflows): General government 7,621 5,454 2,167 Transfers out 5,710 5,710 - Total charges to appropriations 13,331 11,164 2,167 Fund balance, June 30, 2015 15,878$ 18,299$ 2,421$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Loma District Administrative Expense 130 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 2,491$ 2,491$ -$ Resources (inflows): Miscellaneous 3,000 3,000 - Interest earned on investments 32 37 5 Amount available for appropriation 5,523 5,528 5 Charges to appropriations (outflows): General government 2,275 1,451 824 Transfers out 1,891 1,891 - Total charges to appropriations 4,166 3,342 824 Fund balance, June 30, 2015 1,357$ 2,186$ 829$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Beach Drive Assessment District Administrative Expense 131 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 511,244$ 511,244$ -$ Resources (inflows): Other taxes 344,137 347,569 3,432 Charges for services 6,646 7,065 419 Interest earned on investments 6,849 8,878 2,029 Amount available for appropriation 868,876 874,756 5,880 Charges to appropriations (outflows): General government 58,133 15,251 42,882 Public safety 69,000 70,829 (1,829) Community development 16,891 15,836 1,055 Culture and recreation 40,000 28,912 11,088 Public works 274,892 - 274,892 Total charges to appropriations 458,916 130,828 328,088 Fund balance, June 30, 2015 409,960$ 743,928$ 333,968$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Proposition "A" Transit 132 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 758,951$ 758,951$ -$ Resources (inflows): Other taxes 285,452 288,054 2,602 Interest earned on investments 9,828 11,131 1,303 Amount available for appropriation 1,054,231 1,058,136 3,905 Charges to appropriations (outflows): Public works 47,978 8,323 39,655 Capital outlay 533,326 285,285 248,041 Total charges to appropriations 581,304 293,608 287,696 Fund balance, June 30, 2015 472,927$ 764,528$ 291,601$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Proposition "C" 133 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 341,325$ 341,325$ -$ Resources (inflows): Other taxes 214,092 294,054 79,962 Miscellaneous 190,000 190,000 - Interest earned on investments 4,477 6,733 2,256 Amount available for appropriation 749,894 832,112 82,218 Charges to appropriations (outflows): Public works 3,626 3,184 442 Capital outlay 746,268 67,149 679,119 Total charges to appropriations 749,894 70,333 679,561 Fund balance, June 30, 2015 -$ 761,779$ 761,779$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Measure "R" 134 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 14,026$ 14,026$ -$ Resources (inflows): Intergovernmental 22,500 24,504 2,004 Interest earned on investments 98 255 157 Amount available for appropriation 36,624 38,785 2,161 Charges to appropriations (outflows): General government 3,600 2,365 1,235 Capital outlay 30,000 - 30,000 Total charges to appropriations 33,600 2,365 31,235 Fund balance, June 30, 2015 3,024$ 36,420$ 33,396$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Air Quality Management District 135 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 197,621$ 197,621$ -$ Resources (inflows): Other taxes 100,000 114,530 14,530 Interest earned on investments 2,200 1,838 (362) Amount available for appropriation 299,821 313,989 14,168 Charges to appropriations (outflows): Public safety 64,320 59,387 4,933 Capital outlay 235,501 234,640 861 Total charges to appropriations 299,821 294,027 5,794 Fund balance, June 30, 2015 -$ 19,962$ 19,962$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Supplemental Law Enforcement Services 136 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 322,413$ 322,413$ -$ Resources (inflows): Fines and forfeitures 37,000 51,407 14,407 Interest earned on investments 3,847 3,682 (165) Amount available for appropriation 363,260 377,502 14,242 Charges to appropriations (outflows): Public safety 6,700 3,383 3,317 Capital outlay 356,560 166,913 189,647 Total charges to appropriations 363,260 170,296 192,964 Fund balance, June 30, 2015 -$ 207,206$ 207,206$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Asset Seizure and Forfeiture 137 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 32,530$ 32,530$ -$ Resources (inflows): Charges for services 10,500 18,455 7,955 Interest earned on investments 394 548 154 Total charges to appropriations 43,424 51,533 8,109 Fund balance, June 30, 2015 43,424$ 51,533$ 8,109$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Fire Protection 138 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 5,463$ 5,463$ -$ Charges to appropriations (outflows): Transfers out 5,463 (5,463) Total charges to appropriations - 5,463 (5,463) Fund balance, June 30, 2015 5,463$ -$ (5,463)$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual For the Year Ended June 30, 2015 Artesia Boulevard Relinquishment 139 Budgeted Amounts Actual Variance with Final Amounts Final Budget Fund balance, July 1, 2014 252,000$ 252,000$ -$ Resources (inflows): Intergovernmental 369,796 250,107 (119,689) Miscellaneous - 176,243 176,243 Amount available for appropriation 621,796 678,350 56,554 Charges to appropriations (outflows): Public safety 5,426 - 5,426 Community development 318,970 176,719 142,251 Public works 15,915 34,333 (18,418) Capital outlay 272,469 203,743 68,726 Total charges to appropriations 612,780 414,795 197,985 Fund balance, June 30, 2015 9,016$ 263,555$ 254,539$ City of Hermosa Beach Schedule of Revenues, Expenditures and Change in Fund Balance - Budget and Actual Grants For the Year Ended June 30, 2015 140 INTERNAL SERVICE FUNDS Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds and settlement losses. Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life. 141 Equipment Insurance Replacement Fund Fund Total ASSETS Current assets: Cash and investments 10,373,268 5,453,662$ 15,826,930$ Other assets 79,000 27,721 106,721 Total current assets 10,452,268 5,481,383 15,933,651 Capital assets: Nondepreciable - 163,841 163,841 Depreciable, net - 2,882,155 2,882,155 Total capital assets - 3,045,996 3,045,996 Total assets 10,452,268 8,527,379 18,979,647 LIABILITIES Current liabilities: Accounts payable 43,995 547,398 591,393$ Accrued wages and benefits payable 3,144 8,790 11,934 Interest payable 133,867 133,867 Settlement payable (Note 14) 11,500,000 - 11,500,000 Workers' compensation claims payable, due within one year 686,562 - 686,562 General liability claims payable, due within one year 323,644 - 323,644 Compensated absences due within one year 7,621 9,254 16,875 Total current liabilities 12,698,833 565,442 13,264,275 Long-term liabilities: Workers' compensation claims payable, due in more than one year 4,134,783 - 4,134,783 General liability claims payable, due in more than one year 564,656 - 564,656 Total long-term liabilities 4,699,439 - 4,699,439 Total liabilities 17,398,272 565,442 17,963,714 NET POSITION Investment in capital assets - 3,045,996 3,045,996 Unrestricted (6,946,004) 4,915,941 (2,030,063) Total net position (6,946,004)$ 7,961,937$ 1,015,933$ City of Hermosa Beach All Internal Service Funds June 30, 2015 Combining Statement of Net Position 142 Equipment Insurance Replacement Fund Fund Total OPERATING REVENUES: Charges for services 2,782,847$ 1,518,865$ 4,301,712$ Miscellaneous 200,351 - 200,351 Total operating revenues 2,983,198 1,518,865 4,502,063 OPERATING EXPENSES: Salaries and wages 98,239 177,956 276,195 Contractor services 955,861 796,203 1,752,064 Supplies 16 516,357 516,373 Claims expense 262,393 - 262,393 Depreciation - 341,180 341,180 Total operating expenses 1,316,509 1,831,696 3,148,205 OPERATING INCOME 1,666,689 (312,831) 1,353,858 NONOPERATING REVENUES (EXPENSES): Operating grant - 3,000 3,000 Interest expenses (133,867) - (133,867) Gain on disposal of capital assets - 5,727 5,727 Total nonoperating revenues (expenses)(133,867) 8,727 (125,140) INCOME BEFORE TRANSFERS AND SPECIAL ITEM 1,532,822 (304,104) 1,228,718 TRANSFERS: Transfers in - 1,324,690 1,324,690 Transfers out (3,063,903) - (3,063,903) Total transfers (3,063,903) 1,324,690 (1,739,213) SPECIAL ITEM: Settlements (Note 14) (14,000,000) - (14,000,000) Total special item (14,000,000) - (14,000,000) Changes in net position (15,531,081) 1,020,586 (14,510,495) NET POSITION Beginning of the year 8,585,077$ 6,941,351$ 15,526,428 End of the year (6,946,004)$ 7,961,937$ 1,015,933$ City of Hermosa Beach All Internal Service Funds For the Year Ended June 30, 2015 Combining Statement of Revenues, Expenses, and Changes in Net Position 143 Equipment Insurance Replacement Fund Fund Total CASH FLOWS FROM OPERATING ACTIVITIES: Cash received for services from other funds 2,782,847$ 1,518,865$ 4,301,712$ Cash received for insurance recovery 200,351 - 200,351 Cash payments to suppliers of goods and services (1,015,729) (926,192) (1,941,921) Cash payments to employees for services (102,510) (183,020) (285,530) Cash payment for insurance premiums (1,504,994) - (1,504,994) Net cash provided by operating activities 359,965 409,653 769,618 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES: Contributions - 3,000 3,000 Payment on settlement (6,000,000) - (6,000,000) Transfers in - 1,324,690 1,324,690 Transfers out (3,063,903) - (3,063,903) Net cash provided by noncapital financing activities (9,063,903) 1,327,690 (7,736,213) Acquisition of capital assets - (812,185) (812,185) Proceeds from sale of capital assets - 25,121 25,121 Net cash (used in) capital and related financing activities - (787,064) (787,064) Net increase (decrease) in cash and cash equivalents (8,703,938) 950,279 (7,753,659) CASH AND CASH EQUIVALENTS: Beginning of year 19,077,206 4,503,383 23,580,589 End of year 10,373,268$ 5,453,662$ 15,826,930$ RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES: Operating income 1,666,689$ (312,831)$ 1,353,858$ Adjustments to reconcile net operating income to net cash provided by (used in) operating activities: Depreciation - 341,180 341,180 (Increase) Decrease in: Other assets - (27,721) (27,721) Increase (Decrease) in: Accounts payable (59,852) 414,089 354,237 Accrued wages and benefits payable (337) 467 130 Workers' compensation claims payable (744,567) - (744,567) General liability claims payable (498,034) - (498,034) Compensated absences (3,934) (5,531) (9,465) Total adjustments (1,306,724) 722,484 (584,240) Net cash provided by operating activities 359,965$ 409,653$ 769,618$ CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES City of Hermosa Beach All Internal Service Funds For the Year Ended June 30, 2015 Combining Statement of Cash Flows 144 FIDUCIARY FUNDS The Agency Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 145 Lower Pier Avenue Beach Drive Assessment Assessment Bayview Drive Bayview Drive District District Redemption Reserve Redemption Redemption ASSETS Cash and investments 140,414$ 13,613$ 45,338$ 73,696$ Interest receivable 311 30 101 163 Other accounts receivable 590 - 1,467 - Other assets - - - - Total assets 141,315$ 13,643$ 46,906$ 73,859$ LIABILITIES Assessment: Installment account 141,315$ 3,643$ 46,906$ 73,859$ Reserve requirement - 10,000 - - Total liabilities 141,315$ 13,643$ 46,906$ 73,859$ City of Hermosa Beach Combining Statement of Fiduciary Net Position All Agency Funds June 30, 2015 146 Myrtle Avenue Loma Drive Beach Drive Utility Utility Assessment Undergrounding Undergrounding District Assessment Assessment Reserve District District Total ASSETS Cash and investments 4,144$ 128,581$ 149,937$ 555,723$ Interest receivable 9 282 329 1,225 Other accounts receivable - 2,428 2,833 7,318 Other assets - - 90 90 Total assets 4,153$ 131,291$ 153,189$ 564,356$ LIABILITIES Assessment: Installment account 1,153$ 131,291$ 153,189$ 551,356$ Reserve requirement 3,000 - - 13,000 Total liabilities 4,153$ 131,291$ 153,189$ 564,356$ All Agency Funds June 30, 2015 City of Hermosa Beach Combining Statement of Fiduciary Net Position (Continued) 147 Balance Balance June 30, 2014 Additions Deletions June 30, 2015 ASSETS Bayview Drive Redemption Fund: Cash and investments 137,272$ 67,224$ (64,082)$ 140,414$ Interest receivable 328 341 (358) 311 Other accounts receivable 2,148 362 (1,920) 590 Bayview Drive Reserve Fund: Cash and investments 13,432 317 (136) 13,613 Interest receivable 32 33 (35) 30 Lower Pier District Redemption Fund: Cash and investments 46,486 42,623 (43,771) 45,338 Interest receivable 111 112 (122) 101 Other accounts receivable 1,508 1,467 (1,508) 1,467 Beach Drive Assessment District Redemption Fund: Cash and investments 71,049 33,932 (31,285) 73,696 Interest receivable 170 178 (185) 163 Other accounts receivable 144 - (144) - Beach Drive Assessment District Reserve Fund: Cash and investments 4,089 125 (70) 4,144 Interest receivable 10 10 (11) 9 Myrtle Avenue Assessment Fund: Cash and investments 121,429 103,822 (96,670) 128,581 Interest receivable 290 309 (317) 282 Other accounts receivable 4,254 2,428 (4,254) 2,428 Loma Drive Assessment Fund: Cash and investments 143,025 107,160 (100,248) 149,937 Interest receivable 341 361 (373) 329 Other accounts receivable 2,477 2,833 (2,477) 2,833 Other assets - 90 - 90 Total assets 548,595$ 363,727$ (347,966)$ 564,356$ LIABILITIES Bayview Drive Redemption Fund: Assessment installment account 139,748$ 67,927$ (66,360)$ 141,315$ Bayview Drive Reserve Fund: Assessment installment account 3,464 350 (171) 3,643 Assessment reserve requirement 10,000 - - 10,000 Lower Pier District Redemption Fund: Assessment installment account 48,105 44,202 (45,401) 46,906 Beach Drive Assessment District Redemption Fund: Assessment installment account 71,363 34,110 (31,614) 73,859 Beach Drive Assessment District Reserve Fund: Assessment installment account 1,099 135 (81) 1,153 Assessment reserve requirement 3,000 - - 3,000 Myrtle Avenue Assessment Fund: Assessment installment account 125,973 106,559 (101,241) 131,291 Loma Drive Assessment Fund: Assessment installment account 145,843 110,444 (103,098) 153,189 Total liabilities 548,595$ 363,727$ (347,966)$ 564,356$ For the Year Ended June 30, 2015 All Agency Funds Combining Statement of Changes in Assets and Liabilities City of Hermosa Beach 148 Contents Page Financial Trends 150-155 Revenue Capacity 156-167 Debt Capacity 169-171 Demographic and Economic Information 172-174 Operating Information 175-176 1 Ratios of Outstanding Debt by Type Ratios of General Bonded Debt Outstanding Pledged-Revenue Coverage STATISTICAL SECTION This part of the City of Hermosa Beach's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government's overall financial health. These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time. These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax. Since the City of Hermosa Beach has no debt, the following schedules are not included in the Statistical Section: These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.1 These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place. These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 149 2006 2007 2008 2009 2010 Governmental activities: Net investment in capital assets 56,667,910$ 58,249,212$ 57,117,532$ 56,419,592$ 56,599,591$ Restricted 3,590,623 3,813,004 5,171,642 5,403,000 4,518,727 Unrestricted 15,221,233 12,424,195 10,619,806 10,348,315 10,768,025 Total governmental activities net positions 75,479,766$ 74,486,411$ 72,908,980$ 72,170,907$ 71,886,343$ Business-type activities: Net investment in capital assets 8,297,790$ 10,311,365$ 10,187,758$ 10,057,219$ 9,926,861$ Restricted - - - - - Unrestricted 237,824 (1,604,154) (1,443,914) (1,236,859) (1,074,651) Total governmental activities net positions 8,535,614$ 8,707,211$ 8,743,844$ 8,820,360$ 8,852,210$ Primary government: Net investment in capital assets 64,965,700$ 68,560,577$ 67,305,110$ 66,476,811$ 66,526,450$ Restricted 3,590,623 3,813,004 5,171,642 5,403,000 4,518,727 Unrestricted 15,459,057 10,820,041 9,175,892 9,111,456 9,693,374 Total primary government net positions 84,015,380$ 83,193,622$ 81,652,644$ 80,991,267$ 80,738,551$ 1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. 2. Unrestricted net position was restated to reflect implementation of GASB No. 68 and 71. City of Hermosa Beach Net Positions by Component Fiscal Year Last Ten Fiscal Years (accrual basis of accounting) 150 2011 2012 2013 2014 2 2015 Governmental activities: Net investment in capital assets 56,693,499$ 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ Restricted 1,968,275 3,860,192 4,050,722 4,476,554 4,188,404 Unrestricted 14,122,551 10,589,507 17,294,405 (17,705,043) (24,869,037) Total governmental activities net positions 72,784,325$ 79,968,435$ 85,480,868$ 51,599,516$ 46,052,668$ Business-type activities: Net investment in capital assets 9,998,669$ -$ -$ -$ -$ Restricted - - - - - Unrestricted (838,749) - - - - Total governmental activities net positions 9,159,920$ -$ 1 -$ -$ -$ Primary government: Net investment in capital assets 66,692,168$ 65,518,736$ 64,135,741$ 64,828,005$ 66,733,301$ Restricted 1,968,275 3,860,192 4,050,722 4,476,554 4,188,404 Unrestricted 13,283,802 10,589,507 17,294,405 (17,705,043) (24,869,037) Total primary government net positions 81,944,245$ 79,968,435$ 85,480,868$ 51,599,516$ 46,052,668$ 1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. 2. Unrestricted net position was restated to reflect implementation of GASB No. 68 and 71. City of Hermosa Beach Net Positions by Component Last Ten Fiscal Years (accrual basis of accounting) (Continued) Fiscal Year 151 2006 2007 2008 2009 2010 Expenses: Governmental activities: Legislative and legal 962,682$ 867,481$ 990,342$ 1,059,528$ 980,157$ General government 1,999,234 2,523,060 2,544,004 3,579,453 2,409,611 Public safety 15,167,715 17,237,156 19,569,031 17,471,578 17,841,984 Community development 1,349,891 1,424,766 1,358,051 1,416,714 1,243,490 Culture and recreation 1,149,070 1,253,882 1,343,223 1,420,956 1,252,037 Public works 7,980,811 7,106,083 6,942,529 6,860,854 7,823,275 Total governmental activities expenses 28,609,403 30,412,428 32,747,180 31,809,083 31,550,554 Business-type activities: Downtown Enhancement 1,130,499 1,096,039 1,133,746 963,304 997,138 Parking - 2 - - 2 - 2 - 2 Proposition "A" Transit - - - 1 - 1 - 1 Proposition "C" Transit - - - 1 - 1 - 1 Total business-type activities expenses 1,130,499 1,096,039 1,133,746 963,304 997,138 Total primary government expenses 29,739,902 31,508,467 33,880,926 32,772,387 32,547,692 Program revenues: Governmental activities: Charges for services: General government 458,900 497,423 563,583 569,772 543,259 Public safety 3,891,881 2 4,078,709 4,423,335 4,633,478 4,674,410 Community development 1,393,212 1,179,786 1,262,109 782,904 650,962 Culture and recreation 986,137 944,229 1,092,512 949,439 856,135 Public works 808,091 835,845 877,367 907,579 840,740 Operating grants and contributions 725,136 755,716 731,097 539,518 543,531 Capital grants and contributions 1,042,854 286,930 68,862 850,357 1,817,638 Total governmental activities program revenues: 9,306,211 8,578,638 9,018,865 9,233,047 9,926,675 Business-type activities: Charges for services: Downtown Enhancement 1,187,249 1,144,666 1,088,298 1,021,114 1,026,185 Parking - 2 - - 2 - 2 - 2 Proposition A Transit - - - 1 - 1 - 1 Proposition C Transit - - - 1 - 1 - 1 Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenues: 1,187,249 1,144,666 1,088,298 1,021,114 1,026,185 Total primary government program revenues: 10,493,460 9,723,304 10,107,163 10,254,161 10,952,860 Last Ten Fiscal Years (accrual basis of accounting) City of Hermosa Beach Changes in Net Positions Fiscal Year 152 2006 2007 2008 2009 2010 Net revenues (expenses): Governmental activities (19,303,192) (21,833,790) (23,728,315) (22,576,036) (21,623,879) Business-type activities 56,750 48,627 (45,448) 57,810 29,047 Total net revenues (expenses) (19,246,442) (21,785,163) (23,773,763) (22,518,226) (21,594,832) General revenues and other changes in net positions: Governmental activities: Taxes: Property taxes 8,361,888 9,383,544 10,458,034 11,188,377 11,407,964 Sales tax 2,511,004 2,395,390 2,500,659 2,390,658 2,112,971 Other taxes 6,186,641 6,414,534 6,456,786 6,069,339 5,962,978 Grants and contributions not restricted to specific programs 1,537,667 1,273,625 1,472,191 1,454,006 1,242,064 Investment income 753,746 1,097,128 850,176 429,087 135,423 Other general revenues 113 170,325 503,414 303,035 473,559 Transfers 144,451 11,255 4,259 3,461 4,356 Total governmental activities 19,495,510 20,745,801 22,245,519 21,837,963 21,339,315 Business-type activities: Investment income 33,154 48,113 28,320 17,749 5,609 Other general revenues - - - - - Miscellaneous 6,323 86,112 57,840 4,597 1,550 Transfers (144,451) (11,255) (4,259) (3,461) (4,356) Total business-type activities (104,974) 122,970 81,901 18,885 2,803 Total primary government 19,390,536 20,868,771 22,327,420 21,856,848 21,342,118 Changes in net positions Governmental activities: 192,318 (1,087,989) (1,482,796) (738,073) (284,564) Business-type activities: (48,224) 171,597 36,453 76,695 31,850 Total primary government 144,094$ (916,392)$ (1,446,343)$ (661,378)$ (252,714)$ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006. (accrual basis of accounting) Fiscal Year City of Hermosa Beach Changes in Net Positions Last Ten Fiscal Years 153 2011 2012 2013 2014 2015 Expenses: Governmental activities: Legislative and legal 972,979$ 4,677,233$ 881,556$ 1,076,211$ 1,293,214$ General government 3,102,761 2,376,929 2,458,548 2,827,895 3,078,044 Public safety 17,698,263 18,179,929 16,431,962 16,856,166 16,737,044 Community development 1,223,581 1,235,058 1,260,996 1,519,632 1,710,563 Culture and recreation 1,133,467 1,037,790 1,087,000 1,068,388 1,257,311 Public works 6,725,147 7,239,076 7,529,499 7,420,724 6,985,762 Total governmental activities expenses 30,856,198 34,746,015 29,649,561 30,769,016 31,061,938 Business-type activities: Downtown Enhancement 878,021 906,244 - - - Parking - 2 - - - - Proposition "A" Transit - 1 - - - - Proposition "C" Transit - 1 - - - - Total business-type activities expenses 878,021 906,244 - - - Total primary government expenses 31,734,219 35,652,259 29,649,561 30,769,016 31,061,938 Program revenues: Governmental activities: Charges for services: General government 546,793 555,607 2,275,297 2,323,797 2,582,857 Public safety 4,646,663 5,112,011 5,282,223 5,455,694 5,398,329 Community development 797,248 860,158 1,125,637 1,641,773 1,679,400 Culture and recreation 975,469 957,989 1,271,845 1,425,451 1,522,417 Public works 1,025,008 938,822 989,656 892,784 1,085,165 Operating grants and contributions 700,691 828,722 702,873 1,106,254 983,628 Capital grants and contributions 902,506 759,889 255,996 260,844 328,649 Total governmental activities program revenues: 9,594,378 10,013,198 11,903,527 13,106,597 13,580,445 Business-type activities: Charges for services: Downtown Enhancement 1,409,952 1,649,197 - - - Parking - 2 - - - - Proposition A Transit - 1 - - - - Proposition C Transit - 1 - - - - Operating grants and contributions - - - - - Capital grants and contributions - - - - - Total business-type activities program revenues: 1,409,952 1,649,197 - - - Total primary government program revenues: 11,004,330 11,662,395 11,903,527 13,106,597 13,580,445 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006. Fiscal Year City of Hermosa Beach Changes in Net Positions Last Ten Fiscal Years (accrual basis of accounting) (Continued) 154 2011 2012 2013 2014 2015 Net revenues (expenses): Governmental activities (21,261,820) (24,732,817) (17,746,034) (17,662,419) (17,481,493) Business-type activities 531,931 742,953 - - - Total net revenues (expenses) (20,729,889) (23,989,864) (17,746,034) (17,662,419) (17,481,493) General revenues and other changes in net positions: Governmental activities: Taxes: Property taxes 11,518,645 11,598,615 12,151,229 12,910,426 13,739,648 Sales tax 2,209,559 2,474,651 2,598,752 2,653,631 2,768,225 Other taxes 6,060,992 6,461,065 6,638,189 6,924,202 7,179,945 Grants and contributions not restricted to specific programs 1,666,460 1,121,380 1,156,589 1,222,808 1,246,419 Investment income 91,910 109,571 130,709 141,794 510,668 Other general revenues 352,723 237,670 582,999 621,480 489,740 Transfers 259,513 9,913,975 - - - Settlement (Note 14) - - - - (14,000,000) Total governmental activities 22,159,802 31,916,927 23,258,467 24,474,341 11,934,645 Business-type activities: Investment income 4,679 6,418 - - - Other general revenues - - - - - Miscellaneous 30,613 4,684 - - - Transfers (259,513) (9,913,975) - - - Total business-type activities (224,221) (9,902,873) - - - Total primary government 21,935,581 22,014,054 23,258,467 24,474,341 11,934,645 Changes in net positions Governmental activities: 897,982 7,184,110 5,512,433 6,811,922 (5,546,848) Business-type activities: 307,710 (9,159,920) - - - Total primary government 1,205,692$ (1,975,810)$ 5,512,433$ 6,811,922$ (5,546,848)$ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006. Last Ten Fiscal Years (accrual basis of accounting) (Continued) Fiscal Year City of Hermosa Beach Changes in Net Positions 155 1/2 cent Fiscal Real sales tax year property extension Transient Utility ended Property Sales transfer Franchise for public occupancy user's Business June 30 tax tax tax fees safety tax tax license Total 2006 8,361,888$ 2,511,004$ 305,018$ 597,754$ 188,644$ 1,628,394$ 2,726,085$ 740,746$ 17,059,533$ 2007 9,383,544 2,395,390 279,219 606,572 189,852 1,769,015 2,769,113 800,763 18,193,468 2008 10,458,034 2,500,659 226,349 634,421 187,277 1,892,363 2,714,029 802,347 19,415,479 2009 11,188,377 2,390,658 140,113 674,947 167,427 1,645,571 2,575,209 866,072 19,648,374 2010 11,407,964 2,112,971 162,562 650,115 168,103 1,559,048 2,559,369 863,781 19,483,913 2011 11,518,645 2,209,559 178,912 698,622 165,627 1,689,356 2,520,720 807,755 19,789,196 2012 11,639,960 2,474,650 177,555 730,953 180,493 1,884,020 2,495,895 950,803 20,534,329 2013 12,151,229 2,598,752 233,412 752,586 192,175 1,996,174 2,503,265 950,526 21,378,119 2014 12,910,426 2,653,631 290,379 788,694 182,608 2,204,420 2,443,285 1,006,478 22,479,921 2015 13,739,648 2,768,225 312,416 785,935 229,824 2,349,750 2,442,575 1,059,445 23,687,818 Last Ten Years (accrual basis of accounting) City of Hermosa Beach Governmental Activities Tax Revenues By Source 156 This page intentionally left blank. 157 2006 2007 2008 2009 2010 General Fund: Reserved 158,854$ 142,604$ 241,142$ 312,880$ 447,426$ Unreserved 211,191 168,089 257,599 348,373 253,005 Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total general fund 370,045 310,693 498,741 661,253 700,431 All other governmental funds: Reserved 3,845,091 3,875,682 1,734,658 1,273,762 3,060,042 Unreserved, reported in: Special revenue funds 10,900,400 8,864,333 11,135,309 9,764,500 6,965,596 Nonspendable - - - - - Restricted - - - - - Committed - - - - - Assigned - - - - - Unassigned - - - - - Total all other governmental funds 14,745,491 12,740,015 12,869,967 11,038,262 10,025,638 Total governmental funds 15,115,536$ 13,050,708$ 13,368,708$ 11,699,515$ 10,726,069$ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data. (modified accrual basis of accounting) Fiscal Year City of Hermosa Beach Fund Balances of Governmental Funds Last Ten Fiscal Years 158 2011 2012 2013 2014 2015 General Fund: Reserved Unreserved Nonspendable 35,613$ 14,271$ 21,589$ 10,603$ 19,444$ Restricted 172,021 255,200 391,504 410,289 460,304 Committed 10,592 10,592 10,592 28,900 28,900 Assigned 5,635,231 5,776,500 6,555,423 7,655,210 10,005,040 Unassigned - - - - - Total general fund 5,853,457 6,056,563 6,979,108 8,105,002 10,513,688 All other governmental funds: Reserved - - - - - Unreserved, reported in: Special revenue funds - - - - - Nonspendable - 1,500 1,600 Restricted - 3,604,992 3,659,218 4,083,450 3,728,100 Committed - 117,415 137,166 432,606 431,716 Assigned 4,216,497 961,251 847,266 2,831,179 7,646,948 Unassigned - - - - - Total all other governmental funds 4,216,497 4,685,158 4,643,650 7,348,835 11,806,764 Total governmental funds 10,069,954$ 10,741,721$ 11,622,758$ 15,453,837$ 22,320,452$ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data. (modified accrual basis of accounting) (Continued) Fiscal Year City of Hermosa Beach Fund Balances of Governmental Funds Last Ten Fiscal Years 159 2006 2007 2008 2009 2010 Revenues: Property taxes 8,818,051$ 9,834,400$ 10,907,119$ 11,639,348$ 11,863,846$ Other taxes 9,404,925 9,488,447 9,630,365 9,079,246 8,760,988 Licenses and permits 868,085 772,832 877,775 678,477 556,737 Fines and forfeitures 1,627,274 1,615,777 1,994,522 2,111,467 2,075,759 Use of money and property 612,248 656,966 679,528 716,215 622,847 Intergovernmental 2,278,769 1,299,426 1,277,080 1,788,584 2,578,807 Charges for services 3,905,640 4,125,954 4,171,165 4,102,959 4,080,450 Miscellaneous 388,532 349,856 737,112 436,138 301,179 Interest earned on investments 753,746 1,097,128 850,176 429,092 135,423 Total revenues 28,657,270 29,240,786 31,124,842 30,981,526 30,976,036 Expenditures Current: Legislative and legal 963,031 858,017 967,423 1,057,092 976,862 General government 2,220,062 2,426,179 2,433,226 2,513,647 2,350,692 Public safety 14,444,334 16,236,080 17,374,613 16,974,820 17,251,686 Community development 1,346,996 1,417,596 1,283,317 1,400,933 1,229,909 Culture and recreation 1,124,347 1,205,653 1,249,251 1,372,611 1,201,057 Public works 3,785,554 3,895,291 3,993,055 4,288,179 4,158,945 Capital outlay 3,406,570 4,722,412 1,672,441 3,294,817 4,176,566 Total expenditures 27,290,894 30,761,228 28,973,326 30,902,099 31,345,717 Excess (deficiency) of revenues over (under) expenditures 1,366,376 (1,520,442) 2,151,516 79,427 (369,681) Other financing sources (uses) Proceeds from sale of assets - - - - - Transfers in 4,273,743 2,550,370 1,755,358 1,919,303 2,316,998 Transfers out (5,625,788) (3,094,756) (3,588,874) (3,667,923) (2,993,912) Total other financing sources (uses) (1,352,045) (544,386) (1,833,516) (1,748,620) (676,914) Net change in fund balances 14,331$ (2,064,828)$ 318,000$ (1,669,193)$ (1,046,595)$ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% The City has no debt, therefore Debt Service as a percentage of noncapital expenditures is 0.0% for all years. Fiscal Year City of Hermosa Beach Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) 160 2011 2012 2013 2014 2015 Revenues: Property taxes 11,978,616$ 12,056,548$ 12,618,579$ 13,368,615$ 14,198,054$ Other taxes 9,023,359 9,722,036 10,076,591 10,492,906 10,992,377 Licenses and permits 627,056 668,405 783,121 971,336 916,073 Fines and forfeitures 2,219,052 2,475,311 2,416,031 2,781,240 2,652,193 Use of money and property 653,752 815,367 1,102,797 1,077,154 1,087,758 Intergovernmental 1,678,980 1,555,097 896,216 1,350,674 1,290,849 Charges for services 4,005,420 4,301,971 6,312,731 6,722,773 7,318,409 Miscellaneous 538,098 198,858 469,725 630,271 688,047 Interest earned on investments 91,913 109,186 131,749 137,909 244,026 Total revenues 30,816,246 31,902,779 34,807,540 37,532,878 39,387,786 Expenditures Current: Legislative and legal 960,365 1,170,820 893,460 1,093,518 1,170,229 General government 3,001,906 2,293,402 2,550,162 2,806,176 3,040,426 Public safety 16,516,892 16,604,695 16,926,014 17,768,720 18,142,958 Community development 1,189,993 1,177,696 1,279,999 1,548,185 1,722,513 Culture and recreation 1,044,131 989,265 1,110,456 1,132,849 1,246,532 Public works 3,907,921 3,852,318 4,946,423 5,216,430 5,317,541 Capital outlay 3,044,697 2,414,507 1,813,990 2,774,016 3,620,185 Total expenditures 29,665,905 28,502,703 29,520,504 32,339,894 34,260,384 Excess (deficiency) of revenues over (under) expenditures 1,150,341 3,400,076 5,287,036 5,192,984 5,127,402 Other financing sources (uses) Proceeds from sale of assets - 2,360 - - - Transfers in 2,239,196 1,911,100 1,381,842 3,905,349 6,911,913 Transfers out (4,045,652) (4,641,769) (5,787,841) (5,267,254) (5,172,700) Total other financing sources (uses) (1,806,456) (2,728,309) (4,405,999) (1,361,905) 1,739,213 Net change in fund balances (656,115)$ 671,767$ 881,037$ 3,831,079$ 6,866,615$ Debt service as a percentage of noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.0% The City has no debt, therefore Debt Service as a percentage of noncapital expenditures is 0.0% for all years. Fiscal Year City of Hermosa Beach Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (modified accrual basis of accounting) (Continued) 161 Fiscal Real year property Transient Utility ended Property Sales transfer Franchise occupancy user's June 30 tax tax tax fees tax tax Other Total 2006 8,818,051$ 2,511,004$ 305,018$ 597,754$ 1,628,394$ 2,726,085$ 1,636,670$ 18,222,976$ 2007 9,834,400 2,395,390 279,219 606,572 1,769,015 2,769,113 1,669,138 19,322,847 2008 10,907,119 2,500,659 226,349 634,421 1,892,363 2,714,029 1,662,544 20,537,484 2009 11,639,348 2,390,658 140,113 674,947 1,645,571 2,575,209 1,652,748 20,718,594 2010 11,863,846 2,112,971 162,562 650,115 1,559,048 2,559,369 1,716,923 20,624,834 2011 11,978,616 2,209,559 178,912 698,622 1,689,356 2,520,720 1,726,190 21,001,975 2012 12,056,548 2,474,650 177,555 730,954 1,884,020 2,495,895 1,958,962 21,778,584 2013 12,618,579 2,598,752 233,412 752,586 1,996,174 2,503,265 1,992,402 22,695,170 2014 13,368,615 2,653,631 290,379 788,694 2,204,420 2,443,285 2,112,497 23,861,521 2015 14,198,054 2,768,225 312,416 785,935 2,349,750 2,442,575 2,333,476 25,190,431 (modified accrual basis of accounting) City of Hermosa Beach General Government Tax Revenues By Source Last Ten Fiscal Years 162 Fiscal Total Estimated year Total taxable direct actual ended Residential Commercial Industrial Less assessed tax taxable Percentage June 30 property property property Other exemptions value rate value increase 2006 3,158,374$ 228,948$ 7,853$ 102,802$ (29,415)$ 3,468,562$ 1.00 3,497,977$ 11.50% 2007 3,579,546 258,573 8,653 83,453 (35,325) 3,894,900 1.00 3,930,225 12.29% 2008 3,978,216 305,364 11,695 108,583 (45,501) 4,358,357 1.00 4,403,858 11.90% 2009 4,261,900 355,516 12,724 96,991 (45,381) 4,681,750 1.00 4,705,847 7.42% 2010 4,350,467 378,930 12,442 128,227 (46,338) 4,823,728 1.00 4,870,066 3.03% 2011 4,422,662 397,297 12,412 76,659 (46,807) 4,862,224 1.00 4,909,030 0.80% 2012 4,479,178 407,825 11,156 92,987 (46,205) 4,944,941 1.00 4,991,146 1.70% 2013 4,608,192 422,855 11,853 96,628 (46,338) 5,093,190 1.00 5,139,528 3.00% 2014 4,883,870 437,214 10,379 95,294 (47,030) 5,379,750 1.00 5,332,719 5.63% 2015 5,181,815 455,035 12,635 104,834 (43,278) 5,711,045 1.00 5,667,767 6.16% NOTE: Source: Los Angeles County Auditor-Controller Note: Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code. City of Hermosa Beach Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years (In Thousands) In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 163 City direct rate El Camino Fiscal Basic Hermosa Beach Community Los Angeles Flood Metropolitan Year rate * School District College District County Control Water District Total 2006 1.000000 0.014660 0.018380 0.000800 0.000050 0.005200 1.039090 2007 1.000000 0.020430 0.035700 0.000660 0.000050 0.004700 1.061540 2008 1.000000 0.017139 0.016467 - - 0.004500 1.038106 2009 1.000000 0.016398 0.017026 - - 0.004300 1.037724 2010 1.000000 0.017250 0.014868 - - 0.004300 1.036418 2011 1.000000 0.018067 0.016140 - - 0.003700 1.037907 2012 1.000000 0.016904 0.016884 - - 0.003700 1.037488 2013 1.000000 0.018550 0.018490 - - 0.003500 1.040540 2014 1.000000 0.017970 0.017498 - - 0.003500 1.038968 2015 1.000000 0.014729 0.017422 - - 0.003500 1.035651 Source: Los Angeles County Auditor-Controller City of Hermosa Beach Direct and Overlapping Property Tax Rates Last Ten Fiscal Years (rate per $100 of assessed value) Note: In 1978 California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is shared by all taxing agencies wherein the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. Overlapping rates * The Basic rate for all years is comprised of the following: 0.2774 - Los Angeles County 0.2030 - Tax District # 1 0.1602 - Educational Augmentation Fund Impound 0.0849 - Educational Revenue Augmentation Fund 0.0541 - Hermosa Beach City School District 0.0526 - Redondo Beach Unified School District 0.0281 - Development Center Handicapped Minor – Redondo Beach 0.0275 - El Camino Community College District 0.0264 - Manhattan Beach Unified School District 0.0210 - Los Angeles County Library 0.01410 - Development Center Handicapped Minor – Manhattan Beach, 0.01203 - South Bay Cities Sanitation District Operating 0.00861 - Los Angeles County Flood Control Maintenance 0.00859 - County School Service Fund – Hermosa Beach 0.00827 - Beach Cities Hospital District 0.00637 – Los Angeles County FFW 0.00258 - Childrens Instil. Tuition Fund 0.00152 - Los Angeles Flood Drain Improvement District Maintenance 0.00130 - County School Services 0.00094 - Development Center Handicapped Minor – Hermosa Beach 0.00019 - Los Angeles County West Vector Control District 0.00016 - Water Replenishment District of Southern California 0.00010 - Los Angeles County Accumulated Capital Outlay 1.0000000 164 Percent of Percent of total city total city Taxable taxable Taxable taxable assessed assessed assessed assessed value value value value Crico of Fountain Place Limited Partnership (1) 76,500,859$ 1.34% -$ - EQR Gallery Apartments Limited Partnership (1) 68,522,454 1.20% - - 1601 PCH, LLP (1) 24,037,838 0.42% - - Strand and Pier Holding Company LLC (4) 19,588,528 0.34% - - William Stirton Trust (4) 17,549,301 0.31% - - International Church of the Foursquare (42) - - 17,463,663 0.50% Hermosa Hotel Investments (1) 17,004,571 0.30% - - Reg8 Plaza Hermosa LLC (7)/Regency Centers LP (7) 15,026,753 0.26% 13,215,124 0.38% Johnny and Elizabeth Lopez Trust (1) 14,800,000 0.26% - - Sepulveda Design Center LLC (5) 14,572,382 0.26% - - 13,168,554 0.23% - - Beta Group (2) - - 11,412,878 0.33% Robert J. & Ranae R. Desantis Trust (1) - - 11,026,410 0.32% Barbara K. Robinson (1) - - 10,267,455 0.30% Barch PCH - - 8,200,000 0.24% Cheng Yi and Ying Yin Chang (1) - - 7,646,216 0.22% Formosa Hotel Inc (1) - - 7,555,111 0.22% Crico of Fountain Place Limited Partnership (1) - - 7,504,168 0.22% Robert Lovelace and Alicia Minana (2) - - 6,632,243 0.19% 280,771,240$ 4.92% 100,923,268$ 2.92% Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls Numbers in parentheses represent the number of parcels owned by the tax payer. Boris LLC (1) 2006 Taxpayer 2015 City of Hermosa Beach Principal Property Tax Payers Current Year and Nine Years Ago 165 Fiscal Taxes levied Collections in year ended for the Percent subsequent Percent June 30 fiscal year Amount of levy years Amount of levy 2006 6,938,764$ 6,717,516$ 96.81% 221,248$ 6,938,764$ 100.00% 2007 8,256,383 7,778,209 94.21% 344,407 8,122,616 98.38% 2008 9,192,162 8,237,323 89.61% 406,013 8,643,336 94.03% 2009 9,859,343 8,065,980 81.81% - 8,065,980 81.81% 2010 10,210,015 9,165,388 89.77% - 9,165,388 89.77% 2011 10,298,644 9,789,691 95.06% - 9,789,691 95.06% 2012 10,477,164 9,971,097 95.17% - 9,971,097 95.17% 2013 10,761,548 10,422,088 96.85% - 10,422,088 96.85% 2014 11,124,112 10,798,615 97.07% - 10,798,615 97.07% 2015 12,081,959 11,805,592 97.71% - 11,805,592 97.71% Source: Los Angeles County Auditor-Controller fiscal year of levy Total collections to date City of Hermosa Beach Property Tax Levies and Collections Last Ten Fiscal Years Collected within the 166 Fiscal year ended Number of Number of Total assessed June 30 permits Valuation permits Valuation value 2006 696 41,088,855$ 66 4,101,562$ 3,497,977,443$ 2007 526 26,041,241 52 4,595,140 3,894,900,286 2008 531 29,341,001 73 4,600,100 4,358,356,873 2009 416 16,284,748 72 5,004,689 4,705,847,448 2010 377 9,596,415 64 2,454,027 4,823,727,991 2011 486 16,079,850 81 2,599,656 4,862,223,524 2012 410 15,944,064 82 3,597,461 4,944,940,538 2013 462 24,241,397 56 2,710,750 5,093,189,582 2014 468 36,787,127 69 3,946,450 5,379,750,286 2015 457 39,058,181 52 1,947,535 5,711,045,616 Source: City of Hermosa Beach Community Development Department Los Angeles County Auditor-Controller Residential Commercial City of Hermosa Beach Construction Value and Property Value Last Ten Fiscal Years 167 This page intentionally left blank. 168 City assessed valuation 5,711,045,616$ Redevelopment agency incremental valuation - Total assessed valuation 5,711,045,616$ Estimated share of Percentage Outstanding debt overlapping applicable 6/30/15 debt Overlapping debt repaid with property taxes: West Basin Water District debt service 0.587% 53,296,395$ 312,997$ El Camino Community College District 2005 refunding 6.436% 26,018,159 1,674,627 El Camino Community College District 2002 series 2006B 6.436% 79,950,000 5,145,884 El Camino Community College District 2002 series 2012C 6.436% 180,631,166 11,626,104 El Camino Community College District 2012 refunding 6.436% 41,490,000 2,670,453 Total overlapping debt repaid with property taxes 381,385,720$ 21,430,065 City direct debt Hermosa Beach School District debt service 2005 refunding 100.000% 7,743,773 Total city direct debt 7,743,773 Total direct and overlapping debt 29,173,838$ Direct Debt 0.140% Overlapping Debt 0.380% Total Debt 0.510% Source: HdL Coren & Cone Los Angeles County Assessor's Office The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value. City of Hermosa Beach Direct and Overlapping Debt June 30, 2015 169 2006 2007 2008 2009 2010 Assessed valuation 3,497,977,443$ 3,930,224,784$ 4,382,493,918$ 4,705,847,448$ 4,823,727,991$ Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 874,494,361$ 982,556,196$ 1,095,623,480$ 1,176,461,862$ 1,205,931,998$ Debt limit percentage 15% 15% 15% 15% 15% Debt limit 131,174,154$ 147,383,429$ 164,343,522$ 176,469,279$ 180,889,800$ Total net debt applicable to limit - - - - - Legal debt margin 131,174,154$ 147,383,429$ 164,343,522$ 176,469,279$ 180,889,800$ Total debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 0% California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted. Source: City of Hermosa Beach Finance Department County of Los Angeles, Auditor-Controller Fiscal Year City of Hermosa Beach Legal Debt Margin Information Last Ten Fiscal Years 170 2011 2012 2013 2014 2015 Assessed valuation 4,862,223,524$ 4,944,940,538$ 5,093,189,582$ 5,379,750,286$ 5,711,045,616$ Conversion percentage 25% 25% 25% 25% 25% Adjusted assessed valuation 1,215,555,881$ 1,236,235,135$ 1,273,297,396$ 1,344,937,572$ 1,427,761,404$ Debt limit percentage 15% 15% 15% 15% 15% Debt limit 182,333,382$ 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ Total net debt applicable to limit - - - - - Legal debt margin 182,333,382$ 185,435,270$ 190,994,609$ 201,740,636$ 214,164,211$ Total debt applicable to the limit as a percentage of debt limit 0% 0% 0% 0% 0% valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted. Source: City of Hermosa Beach Finance Department County of Los Angeles, Auditor-Controller Fiscal Year California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed City of Hermosa Beach Legal Debt Margin Information Last Ten Fiscal Years (Continued) 171 Personal income Per capita City per capita Unemployment School Calendar Population (in thousands) personal income personal income rate enrollment Year (1) (2) (2) (3) (4) (5) 2006 19,435 369,174,348$ 37,362$ 124,479$ 1.9% 1,462 2007 19,474 390,295,865 39,794 102,630 2.0% 1,449 2008 19,527 413,316,582 42,265 121,634 2.9% 1,518 2009 19,491 402,459,119 40,867 - 4.7% 1,521 2010 19,599 - - - 5.5% 1,278 2011 19,510 420,913,463 42,564 - 5.5% 1,420 2012 19,574 420,913,463 42,564 - 4.9% 1,608 2013 19,653 420,913,463 42,564 - 4.5% 1,710 2014 19,750 466,098,988 46,530 - 3.6% 1,764 2015 19,772 499,767,889 49,400 - 3.1% 1,827 Source: (1) State of California Department of Finance. (2) U.S. Department of Commerce, Bureau of Economic Analysis (data shown is for Los Angeles County), which was last updated in 2015. (3) Personal Income figures for 2002, 2004, 2005, 2006, 2007 and 2008 are from the Internal Revenue Service individual income tax statistics by zip code and for Internal Revenue Service figures are not an ongoing statistical project therefore all years are not available. Census information is available every 10 years, however 2010 information is not yet available. (4) State of California Employment Development Department. (5) State of California Department of Education. City of Hermosa Beach Demographic and Economic Statistics Last Ten Calendar Years 172 Percent of Percent of Number of total Number of total Employer employees employment employees employment Lotus South Bay - 0.00% 219 5.62% 24 Hour Fitness 182 4.28% 138 3.54% City of Hermosa Beach 129 3.03% 133 3.42% Von's Companies 115 2.70% 130 3.34% Sangria/American Junkie 94 2.21% - 0.00% Hermosa Beach School District 90 2.12% 73 1.84% Hennessey's Tavern 85 2.00% 60 1.54% Intensive Behavior Intervention Consultants 81 1.90% - 0.00% First Steps for Kids, Inc. 78 1.83% - 0.00% HYFN - Harris & Forstot, Inc. 64 1.50% - 0.00% Patrick Molloy's 55 1.29% 55 1.41% Comedy & Magic Club 53 1.25% 61 1.57% Shorewood Realtors - 0.00% 96 2.47% Hope Chapel - 0.00% 62 1.59% Source: City of Hermosa Beach Finance Department City of Hermosa Beach Principal Employers Current Year and Nine Years Ago 20062015 173 Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General government 18 19 23 19 16 16 13 17 18 20 Public safety 89 90 87 92 95 72 74 74 75 81 Community development 8 9 6 8 8 9 8 8 8 8 Culture and recreation 5 4 4 4 2 3 3 2 2 3 Public works 20 20 24 20 20 16 17 15 20 17 Total 140 142 144 143 141 116 115 116 123 129 Function 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 General government - - - - - - - - 3 4 Public safety 23 13 9 14 13 26 12 24 13 6 Community development 3 1 2 2 - 1 1 1 2 3 Culture and recreation 35 32 29 24 22 20 19 26 21 25 Public works 2 1 - - - - 1 2 - 3 Total 63 47 40 40 35 47 33 53 39 41 Source: City of Hermosa Beach Finance Department City of Hermosa Beach Full-time and Part-time City Employees by Function Last Ten Fiscal Years Full-time employees as of June 30 Part-time employees as of June 30 174 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Public safety Police: Physical arrests 887 896 933 648 665 795 781 857 945 732 Traffic citations issued 1,518 1,681 2,490 2,503 2,798 1,593 2,290 1,819 3,421 2,406 Parking citations issued 47,770 48,329 59,656 52,080 47,620 63,010 68,193 70,678 74,228 65,783 Fire: Number of emergency calls1 2,136 2,255 2,088 2,273 2,162 2,149 2,487 2,488 2,386 2,467 Inspections 467 751 312 965 908 436 559 495 657 1,061 Community development: Building permits issued 762 597 637 511 441 567 492 462 537 509 Culture and recreation: Number of recreation classes 165 186 171 138 165 172 169 129 134 514 2 Total enrollment 5,228 5,128 4,272 3,744 3,776 3,798 4,327 4,982 5,464 4,247 Public works: Graffiti removal (hours) 414 474 461 341 540 468 383 408 212 209 Permits issued 875 821 1,071 643 611 564 718 736 819 904 Source: Various city departments. Note: 1 Emergency calls for 2005-2008 were only available for January through June. 2 A new software program was used for recreation classes in the 2014-15 fiscal year and classes are now counted by date and time rather than grouped. Fiscal Year City of Hermosa Beach Operating Indicators by Function Last Ten Fiscal Years 175 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Public safety Police: Police stations 1 1 1 1 1 1 1 1 1 1 Parking meters 1,666 1,666 1,666 1,666 1,663 1,663 1 1,663 1,663 1,565 1,553 Fire: Fire stations 1 1 1 1 1 1 1 1 1 1 Culture and recreation Community centers 1 1 1 1 1 1 1 1 1 1 Community theatres 1 1 1 1 1 1 1 1 1 1 Public works: Beach (acres) 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 Greenbelt (acres) 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 Parks 20 20 20 20 20 20 20 20 20 20 Parks (acres) 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 Sanitary sewers (miles) 34 34 34 34 34 34 34 34 40 40 Streets (miles) 40 40 40 40 40 40 40 40 40 40 Streetlights 392 392 392 392 392 392 392 392 400 400 Storm drains (miles) 1 1 1 1 1 1 1 1 2 2 Traffic Signals 17 17 18 18 18 18 19 19 19 19 Infiltration (miles)2 0.6 0.6 0.6 0.6 0.2 Source: City of Hermosa Beach Finance Department 2 This is a system for monitoring the water quality before it reached the Pacific Ocean. The project was funded by a Federal ARRA Grant passed through the California State Water Control Board. Grant approval required the submission on an ongoing monitoring plan that was accepted by the grantor. The project received an award from the American Public Works Association in 2010. City of Hermosa Beach Capital Asset Statistics by Function Last Ten Fiscal Years Fiscal Year 1 The City purchased 24 pay-by-space meters in fiscal year 2011. Fourteen of the machines are installed in City parking lots (which are reflected in this figure), with the remaing ten meters being returned for singled head meter for on-street parking. 176 Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0083 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 LETTER OF SUPPORT FOR GREEN STREET FUNDING FOR ENHANCED WATERSHED MANAGEMENT PLAN COMPLIANCE (Environmental Analyst Kristy Morris) Recommended Action: Staff are requesting City Council direction on submitting a letter to the METRO Board supporting a separate fund for Green Streets in the proposed Measure R2. Background: As part of ongoing work to update its long-range transportation plan (LRTP), Metro is looking at a sales tax ballot measure in November 2016 to raise money to build projects in the plan. The measure Metro is contemplating would ask voters to consider a new half-cent sales tax for 40 years (from mid- 2017 until mid-2057) and extend the Measure R half-cent sales tax until 2057 - 18 years beyond its current expiration date. Metro has been meeting with cities and Councils of Governments (COGs) to discuss potential projects that would help our communities support the new tax. Decisions regarding placing a measure on the ballot, or projects and programs that a ballot measure could fund, is expected to be made in the first half of 2016 by the 13-member Metro Board of Directors. On November 8, 2012, the Los Angeles Regional Water Quality Control Board adopted the fourth Los Angeles Municipal Separate Storm Sewer System (MS4) National Pollutant Discharge Elimination System Permit (Permit). The region’s 85 cities are working collaboratively to address the water pollution and to capture storm water in dozens of watersheds to comply with the permit. On June 26, 2015, in compliance with the Permit, the Beach Cities Watershed Management Group inclusive of Hermosa Beach, submitted a draft Enhanced Watershed Management Plan (EWMP). The costs of implementing the entire Beach Cities EWMP is estimated to range from $82M-$150M over the next two decades and many cities in Los Angeles County are daunted by the requirement to fund these programs. Measure R2 is an opportunity to partially fund some of the stormwater compliance requirements and Hermosa Beach Printed on 1/21/2016Page 1 of 3 powered by Legistar™ Staff Report REPORT 16-0083 best management practices (BMPs) outlined in the watershed management plans. Specifically, streets generate substantial storm water runoff which can mobilize and transport pollutants such as copper in brake pads, zinc in tires, antifreeze and oils, and grease. Many of the watershed plans include the construction of "Green Streets" as part of their compliance strategy to address pollutants from these sources. It is the policy of the City of Hermosa Beach (City) to implement Green Street BMPs as elements of street and roadway projects including Public Works capital improvement projects to the maximum extent practicable. In addition to providing water quality improvement and groundwater replenishment, Green Streets provide attractive streetscapes, traffic calming, pedestrian and bicycle accessibility, reduction in the heat island effect, and creation of linear or pocket parks which are consistent with the City’s Sustainability Plan, General Plan Update and South Bay Bicycle Master Plan. Analysis: In 2015, the City of Hermosa Beach committed financial support for continuing work under the Stormwater Funding Options Study (Farfsing and Watson, 2014) which will assist the City in identifying and implementing strategies for the establishment of sustainable revenue sources to manage stormwater programs and implement water quality improvement projects. With the failure of the Los Angeles County’s Clean Water, Clean Beaches Measure, the City with 58 other cities have collectively agreed to explore funding options or a "tool box" of funding measures. One of the measures includes a dedicated funding for Green Streets in any future sales tax override proposed by METRO. The requested Green Streets program is patterned after a successful funding program managed by the Orange County Transportation Authority as part of Measure M in Orange County. Measure M allocates 2% of the gross annual sales tax revenues to assist Orange County’s communities in improving surface water quality through implementing Green Streets and other environmental cleanup programs. The request for METRO to establish an analogous environmental cleanup and Green Streets program was first raised by the Gateway Water Management Authority in their October 29, 2014 letter to Mayor Garcetti. Other groups such as EnviroMetro, a large group of environmental organizations formed to advocate for Measure R2 projects and guidelines, have since advocated to Metro for these Green Streets funding requirements. Unfortunately, one of EnviroMetro's suggestions is that Green Streets be funded from municipal Local Return, instead of a dedicated Green Street fund. The Elected Officials Stormwater Options Committee met in December 2015 and recommended that our cities communicate with the METRO Board encouraging a separate fund for Green Streets in the proposed Measure R2. This is due to the fact that most cities are challenged to fund existing street Hermosa Beach Printed on 1/21/2016Page 2 of 3 powered by Legistar™ Staff Report REPORT 16-0083 maintenance needs and new street projects, much less to implement Green Streets from the Local Return fund. On December 21, 2015, Ken Farfsing, Carson City Manager, relayed this recommendation via email to Mangers of the cities participating in the Stormwater Funding Options Study and provided a sample letter to customize and submit to METRO for consideration. Staff customized the letter based on the City’s policy directives and specific BMP requirements (Attachment 1) and are requesting City Council direction on submitting the letter to the METRO Board supporting a separate fund for Green Streets in the proposed Measure R2. Fiscal Implications: None Attachments: 1.Letter of Support Respectfully Submitted by: Kristy Morris, Environmental Analyst Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 3 of 3 powered by Legistar™ January 26, 2016 Phillip A. Washington, CEO METRO One Gateway Plaza Mail Stop 99-25-1 Los Angeles, CA 90012-2952 Re: Green Streets Program – Measure R2 Dear Mr. Washington: In the next few months the METRO Board will consider the region’s fourth sales tax override ballot measure for transportation projects. The specific ballot measure will include a list of projects to be funded over the next 30- 45 year period of time. If approved by the voters, the sales tax measure will continue to provide funding to transform the region’s transportation system for decades to come. We are writing to you with an urgent request, that the METRO Board adds funding for Green Streets into the proposed sales tax measure. The requested Green Streets program is patterned after a successful funding program managed by the OCTA as part of Measure M in Orange County. Measure M allocates 2% of the gross annual sales tax revenues to assist Orange County’s communities in improving surface water quality through implementing Green Streets and other environmental cleanup programs. Similar to Orange County’s communities, the cities in Los Angeles County are under increasingly strict storm water permits that require our communities to make substantial improvements to surface water quality. In fact many professionals believe that the Los Angeles area municipal stormwater permits are the most expensive in the state to implement. There is a strong link between transportation projects and surface water pollution. Streets, highways and intersections generate significant environmental impacts, since approximately thirty- percent of urban land use is related to streets, highways and intersections. It has long been known that automobiles, trucks and busses generate substantial water pollution, from copper in brake pads, zinc in tires, antifreeze and oils, and grease dripping onto the pavement, as well as numerous pollutants from exhaust discharges. It is estimated that almost 50% of zinc pollution found in the region’s surface water is generated from tire wear alone. Pollutants from vehicles are deposited on the streets and highways in our communities and then are mobilized by rainfall and washed into the region’s storm drains, flood control channels, rivers, bays and lakes; the number one cause of water pollution. Implementation of the storm water program for our region’s communities is estimated to be in the millions, if not billions of dollars over the next two decades. The region’s 85 cities are working collaboratively to address the water pollution and to capture storm water in dozens of watersheds. For example, the City of Hermosa Beach collaborated with Manhattan Beach, Redondo Beach, Torrance, and the Los Angeles County Flood Control District (LACFCD), collectively referred to as the Beach Cities Watershed Management Group (Beach Cities WMG) to develop an Enhanced Watershed Management Program (EWMP) for the Santa Monica Bay (SMB) and Dominguez Channel Watershed areas within their jurisdictions. The costs of implementing the entire Re: Green Streets Program – Measure R2 Page 2 Beach Cities EWMP is estimated to range from $82M-$150M over the next two decades. Funding these program is proving to be daunting for many cities, especially for disadvantaged communities in Los Angeles County. It is the policy of the City of Hermosa Beach (City) to implement Green Street Best Management Practices (BMPs) as elements of street and roadway projects including public works capital improvement projects to the maximum extent practicable. In addition to providing water quality improvement and groundwater replenishment, Green Streets provide attractive streetscapes, traffic calming, pedestrian and bicycle accessibility, reduction in the heat island effect, and creation of linear or pocket parks which are consistent with the City’s Sustainability Plan, General Plan Update and South Bay Bicycle Master Plan. The request for METRO to establish an environmental cleanup program and Green Streets was first raised by the Gateway Water Management Authority in their October 29, 2014 letter to Mayor Garcetti (attached). The Authority represents 26 cities in Southeast Los Angeles County, over 2 million residents, of which a large number are disadvantaged. In a significant development, Enviro-Metro, a coalition of the region’s environmental organizations, wrote to METRO in August of 2015 with a similar Green Streets funding request. We do not believe that merely incorporating green requirements into the Local Return or into the Call for Projects is workable or equitable. We do support green construction requirements for new projects; however, the State continues to erode local municipal gas tax revenues and our communities struggle to fund street maintenance, much less to retrofit existing streets with green street improvements. Taking funding for green infrastructure from the Local Return lessens the funds available for local improvement projects. In addition, making Green Streets compete in the Call for Projects is inherently unfair to many of the region’s communities, who do not have substantial “matching funds” to compete with the Green Street projects from larger communities, who overcommit matching funds in order to score more grant points. We believe that the environmental cleanup and Green Streets program should be established at 2% of gross annual revenues outside of the Local Return programs. These 2% environmental cleanup program revenues should be available to all communities to retrofit existing streets, highways and intersections in order to implement Green Streets and other environmental clean-up programs. We appreciate the consideration of this request by the METRO Board. Sincerely, Carolyn Petty Mayor cc: Hany Fangary, Mayor Pro Tem Justin Massey, Councilmember Jeff Duclos, Councilmember Tom Bakaly, City Manager Attachment: October 29, 2014, letter to Mayor Garcetti Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0100 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 OVERVIEW OF EXISTING AT&T WIRELESS FACILITY AT 29 TH COURT AND RELOCATION OPTIONS IN VALLEY PARK (Community Development Director Ken Robertson) Recommended Action: Provide direction regarding the relocation of an existing wireless facility at 29th Court. Alternatives: ·Reauthorize application for relocation of wireless facility to Kiwanis building ·Authorize use of alternative site at Valley Park and initiate Code Text Amendment ·Direct staff to pursue removal of facility at 29th Court ·Leave 29th Court facility intact ·Hire radio frequency engineer to assess co-location opportunities along Pacific Coast Highway Background: City staff has been working with AT&T since July 2014 to find a site to relocate an AT&T wireless facility that is currently located on a utility pole on 29th Court (a narrow residential alley). The issue first came to Staff’s attention following a series of complaints to the City about a wireless facility located in the alley on a utility pole in close proximity to a bedroom window. Staff investigated the matter, including consultation with the City Attorney, and learned that the wireless facility has been operating from this location since 2002. However, there are some legal defects with the encroachment permit under which the site was originally installed. The defects cannot be cured at this location by issuing a new encroachment permit because a wireless facility now requires a Conditional Use Permit (CUP) and cannot be located within in a residential zone. Since AT&T has been operating at this location for over 10 years under what it believed to be a valid City permit, staff agreed to work with AT&T to find an appropriate relocation site to resolve the issue. Regulatory Setting The City’s role in the siting and design of wireless facilities is generally limited to aesthetics. Hermosa Beach has adopted Municipal Code provisions consistent with Federal Law to require Conditional Use Permits for wireless communication facilities. Hermosa Beach Printed on 1/21/2016Page 1 of 7 powered by Legistar™ Staff Report REPORT 16-0100 Essentially, the federal Telecommunications Act is intended to ensure that the public has sufficient access to telecomm services. Based on this federal law a local government shall not prohibit or have the effect of prohibiting the provision of personal wireless services. Most circuit courts agree that a local zoning authority potentially runs afoul of this provision if its enforcement of local requirements creates a “significant gap” in service coverage. The Ninth Circuit finds a significant gap if the particular provider seeking to install facilities has a gap in its own service network, even if other companies provide service in an area. Further, no state or local government may regulate cell tower placement based on “the environmental effects of radio frequency emissions to the extent that such facilities comply with the Commission’s regulations concerning such emissions.” A zoning authority’s consideration of health effects, including potential effects on property values due to potential radio frequency emissions, may not serve as “substantial evidence” for purposes of denying a wireless facility. Encroachment Permit AT&T was issued an encroachment permit in 2002 for the installation of a wireless facility on an existing utility pole 357 feet west of Morningside Drive. The wireless facility was actually placed on a utility pole 270 feet west of Morningside Drive on 29th Court. The antennas have been in place for a considerable period of time, over a decade. A survey of the site shows that the wireless facility is attached to a utility pole that straddles both public and private residential property. The adoption of the Wireless Ordinance in 2001 prohibits wireless communication facilities from locating on residentially zoned property. AT&T has asserted the legal right to keep it in place. The identification of the proposed wireless facility location adjacent to the Kiwanis building at 2525 Valley Park, in Valley Park, is the result of protracted negotiations between AT&T and the City. Valley Park has been identified by AT&T as the only available non-residential site that meets AT&T’s technical specifications to satisfy its coverage requirements. Construction History for 309/311 28th Street A new, approximately 4,300 square foot two-story residence was constructed in 2005 to replace an older structure originally built in 1951. The wireless facility on 29th Court has been operating from this location since 2002 while the single- family residence was constructed in 2005. The wireless facility is located on a utility pole towards the northwest corner of the lot. The master bedroom is located at the northwest corner of the first floor and a balcony extends from the dining room at the northwest corner of the second floor. The master bedroom has two fairly large corner windows oriented towards the wireless facility. The second story th Hermosa Beach Printed on 1/21/2016Page 2 of 7 powered by Legistar™ Staff Report REPORT 16-0100 balcony is approximately level with the wireless equipment. The existing 29th Court facility antennas have a radiation center of approximately 20 feet, where the center lines of the antennas are mounted upon the utility pole. This fact is relevant because when the property owners rebuilt the house in 2005, they built the bedroom (and window) closer to the existing wireless facility than the house that was demolished. Analysis: Kiwanis Site Selection Process AT&T has actively researched alternative sites and technologies to achieve the same level of service currently provided from the 29th Court facility, while complying with the Hermosa Beach Municipal Code. Staff agreed to work with AT&T to find an appropriate relocation site to resolve the issue. It was determined that co-locating a wireless facility as an accessory structure to the Kiwanis building was the most feasible option based on existing code requirements while also meeting AT&T’s technical specifications to satisfy its coverage requirements. AT&T’s wireless facility proposal at the Kiwanis building included a request to construct and operate an unmanned disguised wireless telecommunications facility by replacing an existing 28-foot tall flagpole with two 35-foot tall, 2-foot diameter modified flagpoles non-illuminated, with unfinished metal, containing a total of six antennas and six tower-mounted amplifiers while removing and replacing an existing trash enclosure with a new trash and equipment enclosure. However, the design could be reduced to a single 36-inch diameter flagpole. The flagpoles accommodate a 6’ x 10’ flag, and the existing sign plaque would be retained. On January 25, 2015 the City Council gave consent to AT&T to file a CUP application for this city-owned site. Planning Commission Review and Public Notice Discussion On July 21, 2015 the Planning Commission considered AT&T’s application to remove the existing wireless facility at 29th Court and relocate to a new wireless facility co-located with the Kiwanis building. At the hearing, members of the public expressed concerns regarding how the hearing was noticed, even though city staff exceeded the minimum noticing requirements for the project. Staff sent notice of the hearing to over 500 properties, using the boundaries of the entire park to measure. Residents also expressed concerns about the location of the proposed modified flagpoles and proximity to nearby residents, height, bulk, disguise method, parking, and health and environmental issues. The Planning Commission continued the hearing and requested the applicant research alternative wireless locations, specifically co-location opportunities along Pacific Coast Highway, and report back with an assessment of the feasibility of all options. Hermosa Beach Printed on 1/21/2016Page 3 of 7 powered by Legistar™ Staff Report REPORT 16-0100 AT&T withdrew its application to co-locate a wireless facility at the Kiwanis building and is looking at alternatives sites within Valley Park. The City Council’s previous authorization to submit the application was specific to the Kiwanis building only, not the whole of Valley Park. Therefore, to reconsider the Kiwanis building location, the Council would need to re-authorize AT&T to file a CUP application for that location. Alternative sites within Valley Park would necessitate a Code Text Amendment because the Open Space zone only allows, via CUP, wireless communication facilities that are co-located with public governmental buildings or schools. AT&T Community Meeting- Valley Park and Green Belt Site Analysis AT&T’s community meeting on Thursday November 5, 2015 at the Clark Building used the same mailing list used for the July 21, 2015 Planning Commission hearing. Several attendees expressed concern that the notification envelopes failed to mention AT&T or the topic of the meeting being related to Valley Park. Nevertheless, there were 15 attendees recorded on the sign-in sheet, 12 of which were residents of Hermosa Beach. AT&T’s RF engineer, manager of real estate administration, site acquisition & zoning specialist, and other representatives of AT&T were present, as was City Staff. On display were the City zoning map, four alternative sites with maps and photo simulations, screening options and service maps. AT&T identified three potential sites within Valley Park including an approximately 50-foot tall mono tree near the northeast corner of Valley Park, an approximately 30-foot tall mono tree near the northwest corner of the park, and the original proposal for two 35-foot tall modified flag poles co-located with the Kiwanis building. AT&T stated that a 50-foot tall wireless structure would be needed for the location near the northeast corner of Valley Park to avoid interference with the surrounding 30- to 40-foot trees. The northeast corner of the park, where more mature trees are located and less people enter the park, was preferred by attendees. The northwest corner of the park was acknowledged to be in closer proximity to the North School, with sparse vertical landscape and fewer mature trees. Analysis of Co-location Opportunities- Pacific Coast Highway Two sites along Pacific Coast Highway were identified by AT&T as being potentially capable of accommodating additional telecommunication facilities: 2699-3201 Pacific Coast Highway (future Sketchers site); and the Ocean Point Building at the intersection of PCH and Ocean Point. However, AT&T coverage maps show that co-location at 2699-3201 PCH and the Ocean Point Building are too far away to provide adequate coverage to the area currently covered by the existing 29th Court facility. AT&T’s RF engineer stated that the PCH location is too far away from the coverage objective. AT&T has a current ON AIR site at the intersection of PCH and 24TH Place. This site was included in AT&T’s existing coverage prediction. The RF engineer stated that the coverage is not reaching up to the intended area of. Therefore, having one more site on PCH was determined to not meet AT&T’s Hermosa Beach Printed on 1/21/2016Page 4 of 7 powered by Legistar™ Staff Report REPORT 16-0100 objective. The RF engineer also stated that the rolling hills terrain topology in Hermosa Beach limits seamless RF propagation. Therefore, it was determined by AT&T that the cell tower location has to be located as close as possible to the coverage objective area. Therefore, AT&T has determined that co- location along PCH is not a viable option. Potential Options, Factors to Consider and Review Process Required: (See Attachment No. 9 to view this information as a comparison matrix in table format) 1.Reauthorize relocation to Kiwanis Building at 2515 Valley Drive a.Factors to Consider - Flagpole Design i.Less visual impact that second story addition ii.Greater wireless coverage than a roof mounted facility iii.Flagpoles would be located approx. 60 ft. from residential properties to south b.Factors to Consider - Second Story Addition/Roof Mount: i.Building improvements to Kiwanis building and additional recreation space for community ii.Retrofitting required to carry weight of roof mounted facility iii.May allow for greater co-location opportunities iv.Enhanced community facility with greater capacity v.Financial responsibility for construction, although investment over time may be a positive fiscal impact. c.Process Required: i.Lease negotiations for use of the site and financial responsibilities of building enhancements would be brought back to City Council at a later date. ii.Obtain City authorization (as property owner) for AT&T to apply for the CUP and lease to use this site. iii.Public hearing as part of the CUP application. 2.Authorize use of alternative site at Valley Park and initiate code text amendment a.Factors to Consider - Northeast Corner of Park: i.Further away from residential properties, public streets, and parking areas; highly foliated area, and would provide greatest coverage to AT&T customers ii.Close proximity to children’s play area, restrooms, and garden iii.50 foot tall mono tree would be required iv.May be a positive fiscal impact b.Factors to Consider - Northwest Corner of Park: i.Further away from children’s play area and restrooms ii.Closer to the North School and north parking lot iii.Facility would not blend well with surrounding area due to sparse vertical landscape and fewer mature trees iv.May be a positive fiscal impact Hermosa Beach Printed on 1/21/2016Page 5 of 7 powered by Legistar™ Staff Report REPORT 16-0100 c.Process Required: i.Zone Text Amendment required to allow for wireless facilities to locate without co -locating with a public governmental building or school in the Open Space zone. ii.Redefine the term “co-location”. Zone Text Amendment to allow for monopoles or mono facilities within the Open Space zone. 3.Direct staff to pursue removal of facility at 29th Court because of legal defects a.Factors to Consider: i.Wireless facility is removed from utility pole in residential area. ii.City and AT&T in adversarial position iii.AT&T would still have rights to meet coverage needs in area iv.Co-location along PCH determined infeasible by AT&T v.Threat of potential litigation 4.Leave 29th Court facility intact a.Factors to Consider: i.No wireless facility in Valley Park ii.Current wireless coverage maintained iii.Threat of potential litigation b.Process Required: i.Application is already withdrawn by AT&T for the Kiwanis building co-location proposal. ii.No process required to maintain the existing facility at 29th Court. 5.Hire radio frequency engineer to assess co-location opportunities along PCH a.Factors to Consider: i.Verification for accuracy of propagation maps prepared by AT&T ii.Allows independent review and analysis iii.Lengthy process iv.Delays resolution of matter v.Proprietary rights of AT&T may make it difficult to verify propagation maps for co- location sites vi.Regulations favor the carrier to determine their needs vii.City must pay for consultant b.Process Required: i.Seek proposals and select consultant Attachments: 1.City Municipal Code Excerpts Federal Communications Commission Regulations (Service Gaps and Environmental Effects) Copy of Encroachment Permit Survey of 29th Court Site with Utility Pole Location 309/311 28th Street Building Improvement Permit History 2. 311 28th Street House Plans 3. 29th Court Site Photos 4. Part 1 of AT&T Application for Kiwanis Building and Attachments (Plans, Co- Location Letter, Coverage Maps, RF Compliance Report, Setbacks and Hermosa Beach Printed on 1/21/2016Page 6 of 7 powered by Legistar™ Staff Report REPORT 16-0100 Dimensions Map, Kiwanis Building Existing Site Photos, AT&T Flagpole Renderings, and Notice Poster Verification) 5. Part 2 of AT&T Application for Kiwanis Building and Attachments (Plans, Co- Location Letter, Coverage Maps, RF Compliance Report, Setbacks and Dimensions Map, Kiwanis Building Existing Site Photos, AT&T Flagpole Renderings, and Notice Poster Verification) 6. Part 3 of AT&T Application for Kiwanis Building and Attachments (Plans, Co- Location Letter, Coverage Maps, RF Compliance Report, Setbacks and Dimensions Map, Kiwanis Building Existing Site Photos, AT&T Flagpole Renderings, and Notice Poster Verification) 7. Part 4 of AT&T Application for Kiwanis Building and Attachments (Plans, Co- Location Letter, Coverage Maps, RF Compliance Report, Setbacks and Dimensions Map, Kiwanis Building Existing Site Photos, AT&T Flagpole Renderings, and Notice Poster Verification) Planning Commission Staff Report and Resolution City Council Consent Item Letters of Concern and Photos Notice Procedures for Planning Commission Meetings 8. 500 Foot Notification Radius Map for Wireless Facility Proposal at Kiwanis Building Notification List of Addresses Newspaper Articles and Ads Community Meeting Letter Mailed to Property Owners and Occupants within 500 feet of Valley Park Boundary Poster Boards Presented at Community Meeting (Alternative Sites, Street Views, Renderings, Mono-Tree Designs, and Zoning Map) AT&T Alternative Locations (PCH) and Propagation Maps List of Potential Radio Frequency (RF) Engineer Consultants 9. AT&T Comparison Matrix Respectfully Submitted by: Nicole Ellis, Assistant Planner Concur: Ken Robertson, Community Development Director Legal Review: Mike Jenkins, City Attorney Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 7 of 7 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0059 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 PUBLIC COMMENT PERIOD FOR ENVIRONMENTAL IMPACT REPORTS RELATED TO STRAND & PIER HOTEL, SKECHERS AND PLAN HERMOSA (Community Development Director Ken Robertson) Recommended Action: Direct staff to implement the standard 45-day formal public review period for the Draft Environmental Impact Reports related to the Strand & Pier Hotel, Skechers and PLAN Hermosa. Background: At its December 8, 2015 meeting, the City Council requested that staff report back regarding extending the public comment period to a minimum of 90 days for the Draft Environmental Impact Reports (Draft EIRs) related to the proposed Pier & Strand Hotel project, the proposed Skechers project and the City’s draft PLAN Hermosa (General Plan Update). The purpose of an EIR is to: ·inform decision-makers and the public about a project’s significant environmental effects and ways to reduce them; ·demonstrate to the public that the environment is being protected; ·ensure political accountability by disclosing to citizens environmental values held by elected and appointed officials; and ·Demonstrate to citizenry that the agency has considered the environmental implications of its action. The California Environmental Quality Act requires (CEQA) requires a minimum 45-day public review period for a Draft EIR for the above-referenced projects. While a 45-day public review period is the standard, at any time during the review period the City may opt to invoke an extension. Section 15105 of the CEQA Guidelines provides that a review period should not go beyond 60 days unless there are unusual circumstances. Unusual circumstances could include a holiday occurring during the review period, or unforeseen complications. Staff conferred with several EIR consultants with decades of CEQA experience who verified these practices, and none of them had any knowledge of Hermosa Beach Printed on 1/21/2016Page 1 of 3 powered by Legistar™ Staff Report REPORT 16-0059 a project utilizing a review period in excess of 60 days. CEQA requires comments regarding the Draft EIR received during the formal public review period be presented to decision-makers prior to certification of the Final EIR. While the formal comment period may span 45 days, satisfying the legal obligation under CEQA, additional comments may be provided up until the Final EIR is certified and the project approved by the City Council. The City also accepts public comments on the proposed project itself (not just the Draft EIR) after the Draft EIR formal public comment period has passed and before the project is presented to the City Council for consideration. Copies of all written comments are provided to the City Council for consideration at the public hearing, and the Council accepts additional public comments regarding the proposed project during the public hearing. Analysis: PLAN Hermosa For the Draft EIR associated with the City’s PLAN Hermosa, a 45-day review period has been built into the schedule, with an option to extend the review period to a total of 60 days in case of unusual circumstances. Because the work to develop PLAN Hermosa is partially funded by a grant from the Strategic Growth Council with a strict deadline to complete all grant-funded work on or before August 8, 2016, an additional 30-45 days to the Draft EIR review period would result in a delay of public hearings by the Planning Commission and City Council from May/June until their July/August meetings. This delay would mean any post-adoption activities funded by the grant, primarily development of a web-based plan ($23,000 in grant-paid labor) and the 15% contingency held until completion of all grant-funded tasks ($61,500), would be put at risk. If the purpose of extending the review period beyond 45 days is to increase the amount of input and/or comments provided regarding the DEIR, City staff can implement a number of effective methods to ensure the community is aware of, able to participate in, and easily able to provide comments on draft documents during the standard 45-day review period. Such methods can include: ·distribution of additional marketing materials to spread the word about availability of the document, such as notices posted in local newspaper, e-notification, use of cable channel, use of social media; ·additional meetings to review and discuss the DEIR; ·use of online portals such as SpeakUpHermosa to easily submit comments. Skechers and Strand & Pier Hotel Extending the Draft EIR review period could cause delay to development of the properties. If the purpose of extending the review period beyond 45 days is to increase the amount of input and/or comments provided regarding the DEIR, City staff can request the applicant to implement additional Hermosa Beach Printed on 1/21/2016Page 2 of 3 powered by Legistar™ Staff Report REPORT 16-0059 public outreach efforts as indicated above. Begin typing here Attachments: 1.Letter from Skechers dated January 14 regarding Public Review Period for EIR Respectfully Submitted by: Kim Chafin, Senior Planner Concur: Ken Robertson, Community Development Director Legal Review: Mike Jenkins, City Attorney Approved: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 3 of 3 powered by Legistar™ January 22, 2016 Mayor Petty and City Council Members City of Hermosa Beach 1315 Valley Drive Hermosa Beach, California 90254 RE: Agenda Item 6e – Report 16-0059 Public Comment Period for the Environmental Impact Report Related to the Strand & Pier Hotel Dear Mayor Petty and City Council Members, three6ixty represents Strand & Pier Holding Co, LLC, the property owner and Applicant of the Strand and Pier project (“Strand & Pier”). On behalf of the Applicant and our entire development team, we appreciate the opportunity to provide input on the appropriate length of the public comment period for the Draft Environmental Impact Report (DEIR) for our project. The standard public review period for a DEIR provided by the California Environmental Quality Act (CEQA) is 30 days. The comment period for projects that are deemed regionally significant may be extended to 45 days (Public Resources Code § 21091). Section 15105 of the State CEQA Guidelines provides guidance on the appropriate length of the public comment period, stating that such period “should not be less than 30 days nor longer than 60 days, except in unusual circumstances.” It is inappropriate to deem that the Strand & Pier project, along with the others discussed in Agenda Item 6e warrant special consideration beyond the maximum length of time regulated by CEQA, and therefore punitive based upon speculation by the Council of a presumed level of additional community input required. Although Strand & Pier is a prominent project in the city, it is unfair to presume that circumstances surrounding the development warrant special consideration prior to a Notice of Preparation or Initial Study issued for the project. Our team has already conducted significant community outreach, and engaged in project redesigns based on public and City input, and the already extended timeline of our initial entitlement timeline. The voluntary public outreach efforts conducted by the development team have demonstrated a good will effort to involve the citizens of Hermosa Beach at every step in the design and development of the project. As we move forward with our EIR process, there will be multiple additional opportunities for public input that precede publication of the EIR. Thus the City of Hermosa Beach and the EIR team will have ample opportunity to vet public input in advance of formal publication. While the Draft EIR comment period represents an opportunity for community members to make comment for the administrative record, their familiarity with the project does not warrant an extended comment period as necessary due to “unusual circumstances.” Agenda Item 6e – Report 16-0059 Page 2 of 2 It is our belief that Strand & Pier is a transformative project for Hermosa Beach, and meets the definition of “regionally significant”,. there are no unusual circumstances that warrant extending the public comment period beyond the 45 days recommended by the State CEQA Guidelines. We therefore ask the City Council to adopt the staff recommendation to enforce a maximum public review period of 45 days and not 90 days as originally recommended by Council, as Council’s recommendation is in excess of any timeframe mandated in the CEQA statute. A 45- day review period is appropriate in this instance to ensure that the project timeline and EIR process continues without undue delay. Sincerely, three6ixty Dana A. Sayles, AICP (on behalf of Strand & Pier Holding Co, LLC) Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0066 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 MAYOR PETTY TO REPORT ON HER ATTENDANCE AT THE 2016 UNITED STATES CONFERENCE OF MAYORS IN WASHINGTON D.C. FROM JANUARY 20 - 22, 2016 Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0067 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 COUNCILMEMBER MASSEY TO REPORT ON HIS ATTENDANCE AT THE 2016 NEW MAYORS AND COUNCILMEMBERS ACADEMY IN SACRAMENTO FROM JANUARY 20 - 22, 2016 Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report REPORT 16-0068 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 PLANNING COMMISSION SPECIAL VACANCY UNEXPIRED TERM ENDING JUNE 30, 2016 (City Clerk Elaine Doerfling) Recommended Action: It is recommended that the City Council accept with regret the resignation of Ron Pizer from the Planning Commission and: ·Direct the City Clerk to further advertise the vacancy (consistent with standard practice), with applicant interviews and appointment on March 8, 2016; and/or ·Appoint a person this evening to serve on an acting basis until final appointment is made either as noted above or on a different date (but not before February 9). Background: The attached letter of resignation (effective immediately) was received from Ron Pizer on January 11, 2016, thereby creating an unscheduled Planning Commission vacancy for a term ending June 30, 2016. Pursuant to Government Code § 54974, (final) appointment may not take place for at least 10 working days from the posting of a special vacancy notice in the City Clerk’s office. That required notice has been posted in the Clerk’s office and the Library (also per State law), allowing (final) appointment to be made as early as the February 9 City Council meeting, prior to the February 16 Planning Commission meeting. If the Council directs additional advertising, notice will be published in the Easy Reader twice (February 4 and 11), inviting applications from persons interested in appointment to fill the unexpired term ending June 30, 2016, with an application-filing deadline of 6:00 p.m., March 1, 2016. The City Council may wish (this evening) to schedule a time certain for interviews prior to the March 8 regular meeting, allowing appointment to be made prior to the March 15 Planning Commission meeting. Government Code § 54974 also provides that the Council “…may, if it finds that an emergency exists, fill the unscheduled vacancy immediately…” by a person appointed to “…serve only on an Hermosa Beach Printed on 1/21/2016Page 1 of 2 powered by Legistar™ Staff Report REPORT 16-0068 acting basis until the final appointment is made pursuant to this section” (no sooner than February 9). My office has one Planning Commission application (attached) on file at this time from Ryan Nowicki, who was among those applicants interviewed last July. Mr. Nowicki has expressed interest in being considered for appointment to fill this unexpired term. Attachments: 1. Letter from Ron Pizer 2. Application from Ryan Nowicki Submitted by: Elaine Doerfling, City Clerk Noted: Tom Bakaly, City Manager Hermosa Beach Printed on 1/21/2016Page 2 of 2 powered by Legistar™ M E M O R A N D U M TO: Mayor and Members of the City Council FROM: City Clerk Elaine Doerfling DATE: January 26, 2015 SUBJECT: Item 7(c) Supplemental Attached is a supplemental Planning Commission application for Council consideration to fill the unscheduled vacancy for a term ending June 30, 2016. M E M O R A N D U M TO: Mayor and Members of the City Council FROM: City Clerk Elaine Doerfling DATE: January 26, 2015 SUBJECT: Item 7(c) Supplemental Attached is a supplemental Planning Commission application (received today from Andrea Giancoli) for Council consideration to fill the unscheduled vacancy for a term ending June 30, 2016. Hermosa Beach Staff Report City Hall 1315 Valley Drive Hermosa Beach, CA 90254 Staff Report 16-0045 Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of January 26, 2016 COUNCILMEMBER DUCLOS REQUESTS TO DIRECT STAFF, WORKING IN COOPERATION WITH THE CHAMBER OF COMMERCE, TO INVESTIGATE AND REPORT BACK TO THE CITY COUNCIL ON OPTIONS AND STRATEGIES FOR INSTALLING A PERMANENT CAROUSEL AT THE ENTRY POINT TO PIER PLAZA. THIS WOULD INCLUDE A PRELIMINARY COST BENEFIT ANALYSIS AND IMPLEMENTATION OF THE CITY DECISION MAKING TOOL. (Continued from meeting of January 12, 2016) Hermosa Beach Printed on 1/21/2016Page 1 of 1 powered by Legistar™ HERMOSA BEACH FIRE DEPARTMENT MONTHLY ACTIVITY REPORT December 2015 Total - Fires 3 Total - Hazardous Conditions (No fire)25 2 622 - No incident found on arrival at dispatch address 5 Total - Good Intent Call 21 743 - Smoke detector activation, no fire - unintentional 733 - Smoke detector activation due to malfunction 1 0.46% 0.92% Total - Fals Alarm & False Call 6 3.73% 1 0.46% 735 - Alarm system sounded due to malfunction 2 0.92% 740 - Unintentional transmission of alarm, other 2 0.92% 2.29% 13.04% 621 - Wrong location 611F - Fire - Dispatched & cancelled en route 7 3.21% 611M - Medical - Dispatched & cancelled en route 4 1.83% 611 - Dispatched & cancelled en route 2 0.92% 12.42% 0.46% 0.92% 553 - Public service 1 554 - Assist invalid 2 Total - Service Call 20 600 - Good intent call, other 1 0.46% 7 3.21% 53 - Smoke, odor problem 1 0.46% 511 - Lock-out 1 0.46% 520 - Water problem, other 5 2.29% 5220 - Broken Water Line 500 - Service Call, other 1 0.46% 510 - Person in distress, other 2 0.92% 15.53% 445 - Arcing, shorted electrical equipment 3 1.38% 460 - Accident, potential accident, other 1 0.46% 440 - Electrical wiring/equipment problem, other 1 0.46% 444 - Power line down 11 5.05% 411 - Gasoline or other flammable liquid spill 1 0.46% 412 - Gas leak (natural gas or LPG)2 0.92% Total - Rescue & Emergency Medical Service Incidents 86 53.42% 2.75%400 - Hazardous condition, other 6 331 - Lock-in (if lock out , use 511 )1 0.46% 353 - Removal of victim(s) from stalled elevator 1 0.46% 322 - Vehicle accident with injuries 2 0.92% 324 - Motor vehicle accident with no injuries 1 0.46% 321 - EMS call, excluding vehicle accident with injury 75 34.40% 3210 - EMS Call on the Strand 1 0.46% 3110 - Medical assist, assist EMS crew 1 0.46% 32 - Emergency medical service (EMS)4 1.83% 1.86% 111 - Building fire 1 0.46% 113 - Cooking fire, confined to container 1 0.46% 1 - Fire 1 0.46% Incident Type Count Report Date Range: From 12/01/2015 To 12/31/2016 Incident Type Description Count HERMOSA BEACH FIRE DEPARTMENT MONTHLY ACTIVITY REPORT December 2015 Total for Station 1 218 100.00% 50.00% Total for Station 2 0.92% 321 - EMS call, excluding vehicle accident with injury 1 0.46% 1 0.46% Total - Good Intent Call 1 Total - Rescue & Emergency Medical Service Incidents 1 100.00% 111 - Building fire Total - Fires 1 0.46% 50.00% 1 Total - Overpressure Rupture, Explosion, Overheat - no fire 1 36 - Water or ice-related rescue 1 Total - Rescue & Emergency Medical Service Incidents Total - Good Intent Call 13 Total for Station 611 - Dispatched & cancelled en route 6 0.46% 100.00% 1.38%3 2.75% 7 31.82% 11 - Structure Fire 2 Total - Fires 2 321 - EMS call, excluding vehicle accident with injury 5 10 4 611F - Fire - Dispatched & cancelled en route 251 - Excessive heat, scorch burns with no ignition Total - Fires 2 0.46% 2.29%5 20.00% 3 1.38%321 - EMS call, excluding vehicle accident with injury 0.46% 611F - Fire - Dispatched & cancelled en route 5 2.29% Total - Good Intent Call 10 66.67% 611F - Fire - Dispatched & cancelled en route 16 7.34% 1 611 - Dispatched & cancelled en route 611M - Medical - Dispatched & cancelled en route 3 1.38% 62.50%Total - Good Intent Call Total - Rescue & Emergency Medical Service Incidents 3 13.33% 111 - Building fire 1 11 - Structure Fire 1 0.46% 2.29% Total for Station 22 10.09% 321 - EMS call, excluding vehicle accident with injury 5 Total - Rescue & Emergency Medical Service Incidents 6 1.83%611 - Dispatched & cancelled en route 0.46% 37.50% 322 - Vehicle accident with injuries 1 59.09% 611F - Fire - Dispatched & cancelled en route 1 0.46% 2.75%611M - Medical - Dispatched & cancelled en route 6 0.46% 32 - Emergency medical service (EMS)1 0.46% 2.29% 0.92% 9.09% HERMOSA BEACH FIRE DEPARTMENT MONTHLY ACTIVITY REPORT DECEMBER 2015 Incidents by Day of Week Date Range: From 12/01/2015 To 12/31/2015 Day of the Week Number of Incidents Sunday Monday 35 21 29 24 40 30 39 Tuesday Wednesday Thursday Friday Saturday 20 24 28 32 36 40 SundayMondayTuesdayWednesdayThursdayFridaySaturday HERMOSA BEACH FIRE DEPARTMENT MONTHLY ACTIVITY REPORT DECEMBER 2015 Noted:Respectfully Submitted by: Tom Bakaly, City Manager Pete Bonano, Fire Chief Incidents by Time of Day Date Range: From 12/01/2015 To 12/31/2015 Time of Day Number of Incidents 00:00:00 to 00:59:59 5 01:00:00 to 01:59:59 5 02:00:00 to 02:59:59 6 03:00:00 to 03:59:59 3 04:00:00 to 04:59:59 1 05:00:00 to 05:59:59 3 06:00:00 to 06:59:59 3 07:00:00 to 07:59:59 8 08:00:00 to 08:59:59 11 09:00:00 to 09:59:59 8 10:00:00 to 10:59:59 14 11:00:00 to 11:59:59 15 12:00:00 to 12:59:59 12 13:00:00 to 13:59:59 14 14:00:00 to 14:59:59 9 15:00:00 to 15:59:59 7 16:00:00 to 16:59:59 10 17:00:00 to 17:59:59 18 18:00:00 to 18:59:59 19 19:00:00 to 19:59:59 10 20:00:00 to 20:59:59 9 21:00:00 to 21:59:59 10 23:00:00 to 23:59:59 10 22:00:00 to 22:59:59 8 218 0 4 8 12 16 20 0.001.002.003.004.005.006.007.008.009.0010.0011.0012.0013.0014.0015.0016.0017.0018.0019.0020.0021.0022.0023.00