The URL can be used to link to this page

Home My WebLink AboutRES-26-7547 (ENCROACHMENT FEES)Page 1 of 5 RES-26-7547 CITY OF HERMOSA BEACH RESOLUTION NO. RES-26-7547 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE FEE SCHEDULE FOR COMMERCIAL ENCROACHMENTS ON PUBLIC PROPERTY WHEREAS, the City of Hermosa Beach (“City”) owns and manages public rights-of-way and municipal property (“Property”) and possesses authority to regulate, permit, and monetize use of such Property pursuant to its police power under the California Constitution (Section 7 to Article XI) and Government Code section 37350; and WHEREAS, the City is located within the California coastal zone and is subject to the California Coastal Act of 1976 (Public Resources Code section 30000 et seq.)(“Coastal Act”), which requires that development and use of coastal resources be balanced with protection of public access and coastal resources; and WHEREAS, certain encroachments onto City Property may be subject to coastal development permit requirements and related conditions to mitigate impacts on public access and coastal resources; and WHEREAS, the City has long supported outdoor dining and retail encroachments to promote economic vitality and activation of commercial areas; and WHEREAS, the City may impose fees for private use of City Property so long as such fees serve a legitimate public purpose and are rationally related to governmental interests including cost recovery, equitable allocation of public resources, and economic regulation; and WHEREAS, any fee imposed in connection with a permit or condition of approval must satisfy constitutional requirements under the Takings Clause of the United States Constitution (including the “essential nexus” and “rough proportionality” standards established in applicable case law); and Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114 Page 2 of 5 RES-26-7547 WHEREAS, fees for encroachments on City Property are imposed as a condition of voluntary use of public land and are intended to compensate the public for private occupation and to address impacts to public infrastructure, access, and administrative resources; and WHEREAS, the City Council (“Council”) adopted Resolution No. 23-7379 dated June 13, 2023, establishing a tiered fee structure based on factors including location value, intensity of use, administrative costs, and impacts to public infrastructure; and WHEREAS, the Council directed staff to evaluate adjustments to encroachment fees including creation of a reduced-fee category for lower- intensity uses on January 13, 2026; and WHEREAS, the Council has considered the unique characteristics of certain off–Pier Plaza businesses that do not provide table service or alcohol service, and therefore impose lesser impacts on public infrastructure and administrative resources; and WHEREAS, the Council considered the zoning of such encroachments at the April 28, 2026 meeting, and determined that encroachments located in residential zones should be exempt from this fee; and WHEREAS, the Council now desires to create a new encroachment category and fee; and make the fee retroactive to January 1, 2026. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. Recitals. The recitals above are true and correct, and are hereby incorporated herein by reference. SECTION 2. Amendment. The Council hereby amends the City’s Master Fee Schedule to establish the following encroachment fee category: Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114 Page 3 of 5 RES-26-7547 Encroachment Area Category Proposed Fee per square foot, per month Off Pier Plaza businesses conducting retail food sales without table service and without alcohol service located in commercial zones $1.00 Notwithstanding the foregoing, encroachments located within residential zoning districts shall be exempt from the fees established by this Resolution. SECTION 3. Coastal Act and Constitutional Findings. The Council hereby finds and declares the following: a. Essential Nexus. There is an essential nexus between the encroachment fee and legitimate governmental interests including compensation for private use of public property, protection of public access within the coastal zone, and mitigation of impacts to public infrastructure and pedestrian circulation. b. Rough Proportionality. The amount of the fee is roughly proportional to the intensity and character of the encroachment use taking into account location, operational characteristics, and level of impact on public resources and City services. c. Coastal Act Consistency. The fee structure is consistent with the Coastal Act because it supports orderly management of public rights-of- way, protects public access, and ensures that private use of coastal public land does not occur without appropriate compensation or regulation. d. Voluntary Use of City Property. The fee applies only to voluntary encroachments onto City Property, and is therefore a lawful charge for use of public land rather than an unconstitutional exaction. e. No Unconstitutional Taking. The fee does not constitute an unconstitutional taking of private property because it satisfies the nexus and proportionality requirements, and is imposed in connection with discretionary approval of encroachments. f. Residential Zone Exemption. Encroachments located within residential zones (1) are of lower intensity; (2) generate fewer impacts to public access, infrastructure, and City services; and (3) require less administrative Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114 Page 4 of 5 RES-26-7547 oversight. The Council therefore finds that imposition of a fee in such locations would not be roughly proportional to the impacts of the encroachment. The exemption is necessary to ensure the fee structure remains constitutionally compliant and reasonably related to the impacts of use of public property. SECTION 4. Legislative Findings. The Council further finds that (a) the fee is a lawful exercise of the City’s police power and proprietary authority; (b) the fee is not a tax, but a charge for use of public property; (c) the classification created by this Resolution is rational and satisfies equal protection requirements; and (d) the exemption for residential zones is rationally based on legitimate governmental interests including proportionality of impacts, neighborhood compatibility, and support for lower-intensity community-serving uses. SECTION 5. California Environmental Quality Act (“CEQA”). The Council finds that this action is not a project under CEQA pursuant to CEQA Guidelines sections 15378(b)(4) and (5). The action results in the creation of government funding mechanisms or other government fiscal activities, which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Further, the action is an organization or administrative activity of the City that will not result in direct or indirect physical changes in the environment. SECTION 6. Severability. If any section or provision of this Resolution is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this Resolution shall remain valid. The City Council hereby declares that it would have adopted this Resolution, and each section or provision thereof, regardless of the fact that any one or more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation. SECTION 7. Certification. The City Clerk shall certify to the passage and adoption of this Resolution; cause the same to be entered among the original resolutions of the City; and make a minute of the passage and adoption thereof in the records of the proceedings of the City Council in the minutes of the meeting at which time same is passed and adopted. SECTION 8. Effective Date. This Resolution is effective immediately upon adoption. Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114 Page 5 of 5 RES-26-7547 PASSED, APPROVED and ADOPTED on this 12th day of May 2026. Mayor Mike Detoy PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM: Martha Alvarez Jason Baltimore City Clerk Interim City Attorney Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114 State of California ) County of Los Angeles ) ss City of Hermosa Beach ) May 14, 2026 Certification of Council Action RESOLUTION NO. RES-26-7547 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, AMENDING THE FEE SCHEDULE FOR COMMERCIAL ENCROACHMENTS ON PUBLIC PROPERTY I, Martha Alvarez, City Clerk of the City of Hermosa Beach, do hereby certify that the above and foregoing Resolution No. RES-26-7547 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 12th day of May 2026, and passed by the following vote: AYES: MAYOR DETOY, MAYOR PRO TEMPORE KEEGAN, COUNCILMEMBERS JACKSON, FRANCOIS, and SAEMANN NOES: NONE ABSTAIN: NONE ABSENT: NONE ________________________________ Martha Alvarez City Clerk Docusign Envelope ID: C860ECC9-B4AE-82A0-8086-BCC1502FA114