Hermosa Beach City Council
June 14, 2022

City Council
City of Hermosa Beach
Regular Meeting Agenda - Final
City Hall
1315 Valley Drive
Hermosa Beach, CA
90254
Mayor
Michael Detoy
Mayor Pro Tem
Raymond Jackson
Councilmembers
Stacey Armato
Mary Campbell
Justin Massey
Tuesday, June 14, 2022 5:00 PM
Hybrid virtual/in-person meetings are held pursuant to AB361 1 City Council Regular Meeting Agenda - Final June 14, 2022

VIEWING OPTIONS FOR PUBLIC MEETINGS
Public meetings are broadcast live on Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach. Additional viewing options are provided as a courtesy.

ZOOM: Join the meeting link if available or participate by phone YOUTUBE CHANNEL: https://www.youtube.com/c/CityofHermosaBeach90254 CITY WEBSITE: www.hermosabeach.gov and visit the Agendas/Minutes/Videos page ***PLEASE NOTE: IF YOU EXPERIENCE TECHNICAL DIFFICULTIES WHILE VIEWING THE

MEETING ON ONE OF THESE PLATFORMS, PLEASE TRY ONE OF THE OTHER VIEWING OPTIONS***
All council meetings are open to the public. PLEASE ATTEND.

City Council agenda packets are available for your review on the City's website located at www.hermosabeach.gov. Complete agenda packets are also available for public inspection in the City Clerk's office.

During the meeting, a packet is also available in the Council Chambers foyer or you can access the packet at our website, www.hermosabeach.org, on your laptop, tablet or smartphone through the wireless signal available in the City Council chambers - Network ID: CHB-Guest, Password: chbguest To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) will be available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to the Office of the City Clerk at (310) 318-0204 at least 48 hours prior to the meeting.

City of Hermosa Beach Page 2 Printed on 3/25/2024
2 City Council Regular Meeting Agenda - Final June 14, 2022 5:00 P.M. - CLOSED SESSION
(LOCATION: Meetings convene in the Council Chambers and move to the Second Floor Conference Room after Public Comment)

CALL TO ORDER IN COUNCIL CHAMBERS

ROLL CALL

PUBLIC COMMENT ON THE CLOSED SESSION AGENDA
Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend measures to promote social distancing. Members of the public may email comments to [email protected] or submit eComments until 3:00 p.m. on the meeting date.

IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 OR PARTICIPATE BY PHONE:
• Toll Free: 833-548-0276
• Meeting ID: 899 6820 7828, then #
• Passcode: 472825
ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED.

If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker.

RECESS TO CLOSED SESSION IN SECOND FLOOR CONFERENCE ROOM a) 22-0383 MINUTES: Approval of minutes of Closed Session held on May 10, 2022. b) 22-0382 CONFERENCE WITH LABOR NEGOTIATOR
Government Code Section 54957.6
City Negotiator: Labor Attorney Daphne M. Anneet and City Manager Employee
Organizations: Hermosa Beach Police Officers’ Association Police Management Bargaining Group
Teamsters Union, Local 911
Professional and Administrative Employee Group
Management Employee Group
Unrepresented Employee Group

RECESS TO OPEN SESSION
City of Hermosa Beach Page 3 Printed on 3/25/2024
3 City Council Regular Meeting Agenda - Final June 14, 2022 6:00 P.M. - REGULAR AGENDA
Hybrid virtual/in-person meetings are held pursuant to AB361. State and local officials recommend measures to promote social distancing. Members of the public may email comments to [email protected] or submit eComments until 3:00 p.m. on the meeting date.

IN-PERSON: Council Chambers, 1315 Valley Drive, Hermosa Beach ZOOM: https://us02web.zoom.us/j/89968207828?pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT09 OR PARTICIPATE BY PHONE:
• Toll Free: 833-548-0276
• Meeting ID: 899 6820 7828, then #
• Passcode: 472825
ATTENDEES WILL BE MUTED UNTIL THE PUBLIC PARTICIPATION PERIOD IS OPENED.

If you are joining by phone, press * 9 to raise your virtual hand and * 6 to unmute your line when asked to do so. Comments from the public are limited to 3 minutes per speaker.

Oral and Written Communication
Persons who wish to have written materials included in the agenda packet at the time the agenda is published on the City's website must submit the written materials to the City Clerk’s office by email ([email protected]) or in person by noon of the Tuesday, one week before the meeting date.

Written materials pertaining to matters listed on the posted agenda received after the agenda has been posted will be added as supplemental materials under the relevant agenda item on the agenda packet.

Supplemental materials may be submitted via eComment (instructions below) or emailed to [email protected]. Supplemental materials must be received before 3:00 p.m. on the date of the meeting to ensure Council and staff have the ability to review materials before the meeting.

Supplemental materials submitted after 3:00 p.m. on the date of the meeting but before the meeting ends will be posted to the agenda packet the next business day.

Submit Supplemental eComments in three easy steps:

Note: Your comments will become part of the official meeting record. You must provide your full name, but please do not provide any other personal information (i.e. phone numbers, addresses, etc) that you do not want to be published.

1. Go to Agendas/Minutes/Video webpage and find the meeting you would like to submit comments on.

Click on the eComment button for your selected meeting.

2. Find the agenda item for which you would like to provide a comment and select the comment button.

3. Sign in to your SpeakUp Hermosa account or submit a comment as a guest. Enter your name and comment in the fields provided. If you have an account, you may attach files before submitting your comment.

City of Hermosa Beach Page 4 Printed on 3/25/2024
4 City Council Regular Meeting Agenda - Final June 14, 2022 I. CALL TO ORDER
II. PLEDGE OF ALLEGIANCE
III. ROLL CALL
IV. CLOSED SESSION REPORT
V. ANNOUNCEMENTS - UPCOMING CITY EVENTS
VI. APPROVAL OF AGENDA
VII. PROCLAMATIONS / PRESENTATIONS
a) 22-0364 RECOGNIZING LOCAL ARTIST KATY JENSSEN

FOR HER MOSAIC SURFBOARDS
b) 22-0361 RECOGNIZING OFFICERS NAKAMOTO AND DEANDRADE

FOR THEIR LIFE SAVING EFFORTS
c) 22-0381 RECOGNIZING 2022 HERMOSA BEACH

CERTIFIED GREEN BUSINESSES
VIII. CITY MANAGER REPORT
a) REPORT
22-0365

POLICE CHIEF UPDATE
IX. PUBLIC PARTICIPATION
a) REPORT
22-0386

WRITTEN COMMUNICATION
Recommendation: Staff recommends City Council receive and file the written communication.

X. CITY COUNCILMEMBER COMMENTS
a) REPORT
22-0366

UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES

AND STANDING COMMITTEE DELEGATES/ALTERNATES
XI. CONSENT CALENDAR
City of Hermosa Beach Page 5 Printed on 3/25/2024
5 City Council Regular Meeting Agenda - Final June 14, 2022 a) REPORT
22-0367

CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
Recommendation: Staff recommends City Council approve the minutes of the City Council Meeting of Tuesday, May 24, 2022.
b) REPORT
22-0349

CHECK REGISTERS
(Finance Director Viki Copeland)
Recommendation: Staff recommends City Council ratify the following check registers. c) REPORT
22-0377 ADOPTION OF THE 2022-23 APPROPRIATIONS LIMIT
(Finance Director Viki Copeland)
Recommendation: Staff recommends City Council adopt a Resolution approving and adopting the annual Appropriations Limit for the Fiscal Year 2022-23.
d) REPORT
22-0362
2020-21 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
(Including Report from Independent Auditor)
(Finance Director Viki Copeland)
Recommendation: Staff recommends City Council receive and file the 2020-21 Annual Comprehensive Financial Report (ACFR), which includes the report from Gruber and Lopez, Inc., formerly Gruber and Associates, the City's independent auditors. e) REPORT
22-0343

LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY
REPORT FOR APRIL 2022
(Emergency Management Coordinator Brandy Villanueva)
Recommendation: Staff recommends City Council receive and file the April 2022 Fire and Ambulance monthly report.
f) REPORT
22-0369

FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
Recommendation: Staff recommends City Council authorize remote teleconference/virtual meetings of all City of Hermosa Beach legislative bodies in accordance with Assembly Bill 361 ("AB 361"), by finding that: (1) a statewide state of emergency is currently in place; (2) state and local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and meeting in person would present imminent risks to the health or safety of attendees.

City of Hermosa Beach Page 6 Printed on 3/25/2024
6 City Council Regular Meeting Agenda - Final June 14, 2022 g) REPORT
22-0352

APPROVAL OF AGREEMENT BETWEEN THE CITY OF HERMOSA

BEACH AND THE ROTARY CLUB OF HERMOSA BEACH FOR USE
OF THE CORNER OF 11TH STREET AND VALLEY DRIVE FOR THE

FRIDAY FARMERS MARKET
(Community Resources Manager Lisa Nichols)
Recommendation: Staff recommends City Council:

1. Approve an agreement with the Rotary Club of Hermosa Beach to provide its weekly Friday farmers market for a three-year term (Attachment 1); and

2. Authorize the Mayor and City Manager to execute and the City Clerk to attest to the agreement subject to approval by the City Attorney.
h) REPORT
22-0356

APPROVE OCCUPANCY LICENSE FOR COMMUNITY GARDEN
(Environmental Programs Manager Doug Krauss)
Recommendation: Staff recommends City Council:

1. Approve the occupancy license for the Community Garden at South Park (Attachment 1); and

2. Authorize the City Manager to execute and the City Clerk to attest to the agreement subject to approval by the City Attorney.
i) REPORT
22-0376

APPROVAL OF ROAD REPAIR AND ACCOUNTABILITY
ACT OF 2017 (SENATE BILL 1) PROJECT LIST FOR THE
CITY OF HERMOSA BEACH FOR FISCAL YEAR 2022-23
(Public Works Director Joe SanClemente)
Recommendation: Staff recommends City Council:

1. Approve a resolution (Attachment 1) adopting a list of projects for Fiscal Year 2022-2023 funded by Senate Bill 1 (SB 1) Road Repair and Accountability Act of 2017; and

2. Direct staff to submit the project list (Attachment 2) and supporting documentation to the California Transportation Commission by July 1, 2022. j) REPORT
22-0355

ADOPT A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF HERMOSA BEACH, CALIFORNIA, DECLARING A

DROUGHT CRITICAL CONDITION AND IMPLEMENTING
DROUGHT RESPONSE LEVEL 2 CONSERVATION

MEASURES PURSUANT TO HERMOSA BEACH MUNICIPAL
CODE SECTION 8.56.090
(Environmental Programs Manager Doug Krauss)
Recommendation: Staff recommends City Council adopt a resolution declaring a Drought Critical Condition and implementing specified Level 2 conservation measures, pursuant to Hermosa Beach Municipal Code Chapter 8.56.090.

City of Hermosa Beach Page 7 Printed on 3/25/2024
7 City Council Regular Meeting Agenda - Final June 14, 2022 k) REPORT
22-0359
PARTICIPATION IN BEACH CITIES TRANSIT (BCT) LINE 109

AGREEMENT, WITH NO REQUIRED FINANCIAL CONTRIBUTION
FROM THE CITY FOR FISCAL YEAR 2022-2023, WITH THE CITIES

OF EL SEGUNDO, MANHATTAN BEACH AND REDONDO BEACH,

FUNDED FROM PROPOSITION A FUNDS
(Interim Community Development Director Angela Crespi)
Recommendation: Staff recommends City Council:

1. Approve participation for one year along with the other beach cities, with no required financial contribution from the City for Fiscal Year 2022-2023; and

2. Direct the Mayor to sign the Agreement on behalf of the City.

XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE

DISCUSSION
XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M.
a) REPORT
22-0371
ADOPTION OF FISCAL YEAR 2022-23 BUDGET
(Finance Director Viki Copeland)
Recommendation: Staff recommends City Council:

1. Receive public testimony regarding the Fiscal Year 2022-23 Budget (Attachment 1);

2. Approve contracts for services contained in the table herein;

3. Approve the revisions to the Preliminary Budget as shown on pages 5-6; and

4. Adopt a Resolution approving the 2022-23 Budget as presented in Exhibit A (Attachment 2).
b) REPORT
22-0350

PUBLIC HEARING-HERMOSA BEACH LANDSCAPING
AND STREET LIGHTING DISTRICT FISCAL YEAR 2022-2023
(Public Works Director Joe SanClemente)
Recommendation: Staff recommends City Council:

1. Conduct a public hearing in connection with the levy of assessments for Hermosa Beach Landscaping and Street Lighting District 2022-2023; and

2. Adopt a Resolution (Attachment 1) confirming the diagram and assessment [JS1]found in the Engineer's Report (Attachment 2) for Hermosa Beach Landscaping and Street Lighting District 2022-2023 and levying an assessment for the Fiscal Year beginning July 1, 2022 and ending June 30, 2023.

XIV. MUNICIPAL MATTERS
a) REPORT
22-0374
INFORMATION REGARDING THE CITY’S

HISTORIC RESOURCES PRESERVATION PROGRAM
(Interim Community Development Director Angela Crespi)
Recommendation: Staff recommends City Council receive a report regarding the City's historic resources preservation program and provide staff with feedback regarding the program as desired.

City of Hermosa Beach Page 8 Printed on 3/25/2024
8 City Council Regular Meeting Agenda - Final June 14, 2022 b) REPORT
22-0373

APPROVAL OF ADDITIONAL REFINEMENTS TO

TEMPORARY OUTDOOR PERMIT PROGRAMS

RELATED TO MAXIMUM ON-STREET DECK AREAS

AND DISCUSSION OF CHANGES TO PIER PLAZA

ENCROACHMENTS
(Environmental Programs Manager Doug Krauss)
Recommendation: Staff recommends City Council:

1. Approve the implementation of short-term refinements to the outdoor dining programs related to establishing maximum areas of on-street dining decks; and

2. Discuss and provide staff with feedback on potential changes to the temporary encroachment areas for Pier Plaza businesses.
c) REPORT
22-0379

ADOPTION OF ECONOMIC DEVELOPMENT STRATEGY
(Interim Community Development Director Angela Crespi)
Recommendation: Staff recommends City Council:

1. Receive a staff presentation and public comments;

2. Approve a resolution (Attachment 1) adopting an Economic Development Strategy; and

3. Direct staff to begin work on identified first year implementation priorities. d) REPORT
22-0358

CALLING AND GIVING NOTICE AND CERTAIN OTHER

RESOLUTIONS NECESSARY FOR HOLDING

THE GENERAL MUNICIPAL ELECTION
TO BE HELD ON TUESDAY, NOVEMBER 8, 2022
(City Clerk Myra Maravilla)
Recommendation: Staff recommends Council:

1. Adopt Resolution calling and giving notice of the election for certain officers and one or more measures (Attachment 1);

2. Adopt Resolution to permit a special runoff election for elective officers in the event of a tie vote (Attachment 2);

3. Adopt Resolution to request the County of Los Angeles consolidate the City of Hermosa Beach General Municipal Election with the Statewide General Election and render full services to the conduct of the election (Attachment 3); and

4. Adopt Resolution to adopt regulations for candidates for election office pertaining to candidate statements (Attachment 4).

XV. FUTURE AGENDA ITEMS
a) 22-0380 TENTATIVE FUTURE AGENDA ITEMS
XVI. ADJOURNMENT
City of Hermosa Beach Page 9 Printed on 3/25/2024
9 City Council Regular Meeting Agenda - Final June 14, 2022

FUTURE MEETINGS AND CITY HOLIDAYS
CITY COUNCIL MEETINGS:

June 28, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
July 12, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
July 21, 2022 -Thursday - Adjourned Regular Meeting:
6:00 PM - Joint meeting with Planning Commission on Housing Forum July 26, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
August 4, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Study Session
August 9, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
August 23, 2022 - Tuesday - No Meeting (Dark for Summer Break) September 1, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Study Session
September 13, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting
September 27, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting
October 11, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
October 22, 2022 -Saturday - Adjourned Regular Meeting:
8:00 AM - City Council Retreat
October 25, 2022 - Tuesday - 5:00 PM - Closed Session,
6:00 PM - City Council Meeting
November 3, 2022 -Thursday - Adjourned Regular Meeting:
5:00 PM - Closed Session, 6:00 PM - Regular Meeting
November 8, 2022 - No meeting due to lack of quorum (General Election) November 22, 2022 - No meeting due to lack of quorum (Thanksgiving week) November 29, 2022 -Tuesday - Adjourned Regular Meeting:
5:00 PM - Closed Session, 6:00 PM - Regular Meeting (Installation of new officers) December 1, 2022 -Thursday - Adjourned Regular Meeting:
6:00 PM - Mayor Transition Ceremony & Reception
December 13, 2022 - Tuesday - 5:00 PM - Closed Session, 6:00 PM - City Council Meeting
December 27, 2022 - Tuesday - No Meeting (Dark for WInter Break) City of Hermosa Beach Page 10 Printed on 3/25/2024
10 City Council Regular Meeting Agenda - Final June 14, 2022 BOARDS, COMMISSIONS AND COMMITTEE MEETINGS:

June 16, 2022 - Thursday - 7:00 PM - Parks and Recreation Advisory Commission Meeting June 21, 2022 - Tuesday - 6:00 PM - Joint City Council and Planning Commission Meeting July 5, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting July 19, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting July 20, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting August 2, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting August 16, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting September 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting September 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting September 21, 2022 - Wednesday - 6:00 PM - Public Works Commission Meeting October 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting October 18, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting November 1, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting November 15, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting November 16 - Wednesday - 6:00 PM - Public Works Commission Meeting December 6, 2022 - Tuesday - 7:00 PM - Parks and Recreation Advisory Commission Meeting December 20, 2022 - Tuesday - 6:00 PM - Planning Commission Meeting CITY OFFICES CLOSED FRIDAY-SUNDAY AND ON THE FOLLOWING DAYS:

July 4, 2022 - Monday - Independence Day
September 5, 2022 - Monday - Labor Day
November 24, 2022 - Thursday - Thanksgiving Day
December 26, 2022 - Monday - Christmas Day (observed)
January 2, 2023 - Monday - New Year's Day (observed)
City of Hermosa Beach Page 11 Printed on 3/25/2024
11 City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0383
Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of June 14, 2022
MINUTES: Approval of minutes of Closed Session held on May 10, 2022.

City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 12
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0382
Honorable Mayor and Members of the Hermosa Beach City Council Closed Session of June 14, 2022

CONFERENCE WITH LABOR NEGOTIATOR
Government Code Section 54957.6
City Negotiator: Labor Attorney Daphne M. Anneet and City Manager Employee
Organizations: Hermosa Beach Police Officers’ Association Police Management Bargaining Group
Teamsters Union, Local 911
Professional and Administrative Employee Group
Management Employee Group
Unrepresented Employee Group
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 13
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0364
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

RECOGNIZING LOCAL ARTIST KATY JENSSEN

FOR HER MOSAIC SURFBOARDS
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 14
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0361
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

RECOGNIZING OFFICERS NAKAMOTO AND DEANDRADE

FOR THEIR LIFE SAVING EFFORTS
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 15
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
22-0381
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022
RECOGNIZING 2022 HERMOSA BEACH

CERTIFIED GREEN BUSINESSES
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 16
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0365
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

POLICE CHIEF UPDATE
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 17
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0386
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

WRITTEN COMMUNICATION
Recommended Action:

Staff recommends City Council receive and file the written communication.

Attachments:

1. Written Communication from Kent Allen re Budget Workshop

2. Written Communication from Matt McCool re Case #14-764

3. Written Communication from Tony Higgins re eComments

4. Written Communication from Tony Higgins re Reckless Driving on Hermosa Ave City of Hermosa Beach Page 1 of 1 Printed on 9/12/2022
powered by Legistar™ 18
From: Kent Allen
To: City Clerk; Ann Yang
Subject: Fwd: See attached:

Date: Tuesday, June 7, 2022 11:01:16 AM
Also- please post this email and the link under written communication for the next council meeting.

Warm regards
Kent Allen
---------- Forwarded message ---------
From: Kent Allen <[email protected]>
Date: Tue, Jun 7, 2022 at 7:29 AM
Subject: See attached:

To: Michael Jenkins <[email protected]>, <[email protected]>, Ann Yang <[email protected]>
Cc: Hermosa Beach City Council <[email protected]>, Kevin Cody <[email protected]>
https://www.dropbox.com/s/mo00k0s3c63tevm/Mary%20Ramble.mp4?dl=0 This is out of control and by no means an isolated case. It's been going on for years now and has gotten worse.

City Clerk: Please see that this clip is added to the next council meeting, I will be speaking to it under public comments.

During the June 2nd, Fiscal Year 2022-23 Budget Workshop:

1. Mayor Pro Tem Jackson and Councilwoman Armato engaged in regular conversation while other Councilmembers, City Staff and members of the public were speaking…

2. Councilwoman Armato texted throughout the meeting…

3. Mayor Pro Tem Jackson scrolled to share cell phone messages to Councilwoman Armato…

4. Councilwoman Armato slid her cell phone over to Mayor Pro Tem Jackson…

5. Mayor Pro Tem Jackson shakes his head after Councilwoman Armato says something to him…

6. Mayor Detoy looks over in disapproval
--
Kent Allen
--
Kent Allen
19 Matt McCool
[email protected]
(310) 486-9696
May 17, 2022

VIA ELECTRONIC MAIL
Suja Lowenthal
City Manager, Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
RE: Request for investigation into missing police investigation report for case #14-764 Dear Ms. Lowenthal:

I am respectfully requesting the City of Hermosa Beach conduct an investigation into why the Hermosa Beach Police Department does not have an investigation report for case #14-764. Please see attached February 14, 2022 email response from Acting Captain Landon Phillips. (Exhibit A.) A then-Lt. Phillips made official statements regarding my case:
• In 2017, he made false statements to the Easy Reader News about my case while I was serving as a City official during my campaign for City Council. • In 2020, he made false statements to the FBI about my case while I was serving as a contractor with Naval Special Warfare, and a reservist with SEAL Team SEVENTEEN.

How is it even possible for the Hermosa Beach Police Department not to have this investigation report? A then-Lt. Phillips while being interviewed by the FBI shared my case. Most likely, he had to give the full case file to the special agent conducting the investigation on me.

Please advise if the City of Hermosa Beach will conduct an investigation as to why the Hermosa Beach Police Department does not have the investigation report for case #14-764.

Very Respectfully,
Matt McCool
CC: Hermosa Beach City Council, (Via email)
Hermosa Beach Deputy City Manager, Angela Crespi (Via email) Hermosa Beach Police Chief, Paul LeBaron (Via email)
Hermosa Beach City Clerk, Myra Maravilla (Via email)
20 Exhibit A
21 From: Landon Phillips <[email protected]>
Sent: Monday, February 14, 2022 11:28 AM
To: Matt McCool <[email protected]>
Cc: 'Roehrick, Steve' <[email protected]>; Dorothy Scheid <[email protected]>; Paul LeBaron <[email protected]>; Suja Lowenthal <[email protected]>; City Clerk <[email protected]> Subject: Re: [Document Released to Requester] City of Hermosa Beach public records request #21-79 Good morning Mr. McCool,
We do not have a report from Detective Smith related to the 2014 incident.

Regards,
Landon Phillips | Acting Captain
Hermosa Beach Police Department
540 Pier Ave. Hermosa Beach, CA 90254
o: 310-318-0336
e: [email protected]
hermosabeach.gov/police
We exist so Hermosa Beach can be the safest little beach city through partnerships, integrity and excellent service.
22 From: tony higgins
To: City Clerk
Cc: City Council; Suja Lowenthal; Angela Crespi; Michael Jenkins; DG_PlanningCommission Subject: Written Communication to City Council- Using eComment to improve public participation on non agenda items Date: Tuesday, June 7, 2022 9:31:54 AM
Dear City Clerk -
Please accept this as a written communication to the city council START WRITTEN COMMUNICATION HERE:

Date: June 7, 2022
Subject: Using eComment to improve public participation access for non agenda items Dear Councilmembers
In the earlier email I point out that eComment is a useful tool to solicit more timely public comment. I received no response.

Plan Hermosa makes numerous references to elements of good governance that encourages the broadest possible public participation.

For instance page 48 of Plan Hermosa says:

The Hermosa Beach community prides itself on being highly active in its own governance, and the City is committed to actively seeking public participation.

Conversely, our City Manager has clearly stated her desire to mute and minimize public participation as it relates to written communications to the City Council on non agenda items.

Not only did she recommend disallowing written communications on non agenda items but she recommended that written communications be limited to the number of words that could be said in 3 minutes.

This is a thinly veiled effort to mute detailed criticism and firmly control the narrative.

It’s simply oppressive tactic.

There is an easy improvement the city could make.

The current policy requires written communications to be submitted one week in advance of the council meeting.

An eComment button under the Public Participation section of the Council meeting agenda would allow written comments on non agenda items just hours before the meeting and after the agenda has been published.

The picture below shows this has already been implemented in granicus in the planning commission agenda.

I used this eComment feature (see red aarow below) to make an eComment on a Planning Commission non-agenda item without any technical problems.

Why can’t this feature that allows for more timely public comment on non agenda items be implemented for council meetings too? See red arrow below
Planning Commission Agenda WITH eComment:
23 Council Meeting Agenda WITHOUT eComment (see yellow circle):
24 Thank you for considering this.

Anthony Higgins
25 From: tony higgins
To: City Clerk
Cc: Paul LeBaron
Subject: Re: Written Communication to City Council on HBPD handling Reckless driving and doughnuts on Hermosa Ave Date: Tuesday, June 7, 2022 11:53:22 AM
On Edit below. Sorry
Dear City Clerk,
Please add this item as my second written communication to the city council START WRITTEN COMMUNICATION HERE:

June 7, 2022
Dear Council Members
Subject: Re: Reckless driving and doughnuts on Hermosa Ave I saw a crime report recently where drivers were doing
doughnuts on Hermosa Ave.

Personally I believe the city needs to crack down on
street take-overs, racing, doing doughnuts on Hermosa
Ave and all other forms of reckless driving.

The crime report I read left me with the impression that the perpetrators were not arrested nor were their vehicles impounded.

The crime report said the drivers were just issued tickets, the HBPD was praised for their quick response (self
assessment?) and then the officers sent the offenders on their way.

At least that is what I thought I read!
Well if so the HBPD may as well have
pulled out a welcome mat for reckless
unruly drivers!
26 My cursory understanding is that the HBPD under the
CVC could have arrested the drivers for reckless driving and impounded the vehicles AND failing to do so just
sent the message that racing, doing doughnuts on
Hermosa Ave the aggressive driving of obnoxiously loud
vehicles up and down our streets at all hours of the night would be tolerated with minimal consequences.

Here is the CVC 23109.2 section I’m referring to. If my interpretation of the law and the facts surrounding this crime is correct; and these reckless drivers could have been arrested and had their vehicles impounded then I
would like to know why this wasn’t done?
The council needs to publicly ask Chief Lebaron why this wasn’t done and tell the Chief and our community at large that any form of reckless driving WILL result in an arrest, an arrest record and not just a ticket and vehicle impoundment not a slap on the wrist.
23109.2. (a) (1) Whenever a peace officer determines
that a person was engaged in any of the activities set
forth in paragraph (2), the peace officer may
immediately arrest and take into custody that person
and may cause the removal and seizure of the motor
vehicle used in that offense in accordance with Chapter 10 (commencing with Section 22650). A motor vehicle
so seized may be impounded for not more than 30 days.
(2) (A) A motor vehicle speed contest, as described in
subdivision (a) of Section 23109.
(B) Reckless driving on a highway, as described in
subdivision (a) of Section 23103.
(C) Reckless driving in an offstreet parking facility, as described in subdivision (b) of Section 23103.

If I got my facts wrong and the drivers were arrested
and/or vehicles impounded I apologize profusely.

While I understand that you might not want to saddle an obviously sober wideeyed teenager with an arrest record for reckless driving; many of the drivers I see speeding up and down our streets are full blown adults and I believe in most cases the city should take a hard stand of any reckless driving in our city; and the perpetrators should be punished with an arrest and vehicle impoundment. 27 We don’t need to be pulling out the welcome mat for
reckless drivers and obnoxiously loud vehicles that
plague our residential neighborhoods at all hours of
the night AND the City Council needs to weigh in on
this with Chief LeBaron.

Anthony Higgins
28 City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0366
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES

AND STANDING COMMITTEE DELEGATES/ALTERNATES
City of Hermosa Beach Page 1 of 1 Printed on 6/9/2022
powered by Legistar™ 29
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0367
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
Recommended Action:

Staff recommends City Council approve the minutes of the City Council Meeting of Tuesday, May 24, 2022.

Attachments:

1. May 24, 2022 Regular City Council Meeting Minutes
Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 1 of 1 Printed on 9/12/2022
powered by Legistar™ 30
City Hall
1315 Valley Drive
Hermosa Beach, CA
90254
City of Hermosa Beach
Meeting Minutes
City Council
Mayor
Michael Detoy
Mayor Pro Tem
Raymond Jackson
Councilmembers
Stacey Armato
Mary Campbell
Justin Massey
Tuesday, May 24, 2022 6:00 PM
Hybrid virtual/in-person meetings are held pursuant to AB361 Closed Session - None
Open Session - 6:00 PM
I. CALL TO ORDER
Mayor Detoy called the meeting of Tuesday, May 24, 2022 to order at 6:08 p.m.

Mayor Detoy held a moment of silence to honor the recent lives lost due to the mass shooting in Uvalde, Texas and Buffalo, New York.

II. PLEDGE OF ALLEGIANCE
The pledge of allegiance was led by Randy Renner.

III. ROLL CALL
Mayor Detoy, Mayor Pro Tempore Jackson, Councilmember Armato, Councilmember Campbell, and Councilmember Massey

Present: 5 -

Absent: 0
IV. CLOSED SESSION REPORT
None.

V. ANNOUNCEMENTS - UPCOMING CITY EVENTS
Mayor Detoy provided a report on the upcoming City events: Fiesta Hermosa and the Memorial Day Celebration.

City of Hermosa Beach Page 1 Printed on 6/9/2022
31 City Council Meeting Minutes May 24, 2022
VI. APPROVAL OF AGENDA:This is the time for the City Council to change the order in which it takes up items on this agenda, remove and/or continue agenda items and pull items from the consent calendar for separate consideration.

A motion was made by Councilmember Armato, seconded by Councilmember Campbell, to approve the agenda. The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
VII. PROCLAMATIONS / PRESENTATIONS
a. 22-0346 COVID-19 HEALTH UPDATE FROM

BEACH CITIES HEALTH DISTRICT
Jacqueline Sun, Director of Well-Being Services for Beach Cities Health District, gave a COVID-19 health update presentation.

Councilmember Massey had questions regarding transmission rates.

Jacqueline Sun responded to questions made by Councilmember Massey. b. 22-0336 PROCLAMATION DECLARING JUNE 2022 AS

PRIDE MONTH IN HERMOSA BEACH
Mayor Detoy presented the proclamation for Pride Month 2022.

Mayor Detoy invited Randy Renner, Jose Bacallao, and Jessica Accamando to the podium to provide remarks on Pride Month 2022 in Hermosa Beach.
c. 22-0337 PRESENTATION ON COMMUNITY SURVEY
Richard Bernard, FM3 Research representative, presented the results of the community survey that took place between March and April 2022.

City Council made comments regarding voter education, survey results, FM3 as a business, and the availability of the presentation.

Richard Bernard, responded to councilmember questions and comments..

City Manager Suja Lowenthal responded to councilmember questions and comments.

Public comments were provided by:

Trent Larson
City of Hermosa Beach Page 2 Printed on 6/9/2022
32 City Council Meeting Minutes May 24, 2022
Carolyn Petty
Gary Brown
Heidi Swan
Andrea Valcourt
Matt McCool
Russ Gilbert
Laura Pena
Dency Nelson
Kent Allen
Ann Gotthoffer
Richard Bernard addressed questions raised by members of the public during public comment.

VIII. CITY MANAGER REPORT
City Manager Suja Lowenthal provided a City Manager Report. a. 22-0328 POLICE CHIEF UPDATE
Police Chief Paul LeBaron provided an update on police operations and events.

Councilmember Campbell had questions regarding street car racing.

Councilmember Massey made comments regarding e-bikes.

Chief LeBaron responded to councilmember comments and questions.

IX. PUBLIC PARTICIPATION -- ORAL AND WRITTEN COMMUNICATIONS FROM THE PUBLIC.
a. REPORT
22-0348

WRITTEN COMMUNICATION
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem Jackson, to receive and file Written Communication. The motion carried by the following vote:

Aye: 4 - Mayor Detoy, Jackson, Campbell, and Massey

Absent: 1 - Armato
X. CITY COUNCILMEMBER COMMENTS:

Mayor Detoy requested a clarfication regarding e-mailed comments submitted to the City Council.

City Manager Suja Lowenthal provided clarifying comments to Mayor Detoy's inquiry regarding e-mailed comments..

City of Hermosa Beach Page 3 Printed on 6/9/2022
33 City Council Meeting Minutes May 24, 2022
Mayor Detoy provided further clarification on communications received from the public.

Councilmember Massey responded to public comments made about transparency.

City Manager Lowenthal shared how to access e-comments on the agenda.
a. 22-0329 UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES

AND STANDING COMMITTEE DELEGATES/ALTERNATES
XI. CONSENT CALENDAR
Approval of the Consent Calendar
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem Jackson, to approve the Consent Calendar Items a - o. The motion carried by the following vote:

Aye: 4 - Mayor Detoy, Jackson, Campbell, and Massey

Absent: 1 - Armato
a. REPORT
22-0330

CITY COUNCIL MEETING MINUTES
(City Clerk Myra Maravilla)
A motion was made to approve recommendation on the Consent Calendar. b. REPORT
22-0334

CHECK REGISTERS
(Finance Director Viki Copeland)
A motion was made to approve recommendation on the Consent Calendar. c. REPORT
22-0342

MEMORANDUM REGARDING
REVENUE REPORT, COVID-19 REVENUE REPORTS,

EXPENDITURE REPORT, AND CIP REPORT BY PROJECT
FOR MARCH 2022 AND APRIL 2022
(Finance Director Viki Copeland)
A motion was made to approve recommendation on the Consent Calendar. d. REPORT
22-0340

MEMORANDUM REGARDING
CITY TREASURER’S REPORT AND CASH BALANCE REPORT
(City Treasurer Karen Nowicki)
A motion was made to approve recommendation on the Consent Calendar.

City of Hermosa Beach Page 4 Printed on 6/9/2022
34 City Council Meeting Minutes May 24, 2022
e. REPORT
22-0341

CANCELLATION OF CERTAIN CHECKS
(City Treasurer Karen Nowicki)
A motion was made to approve recommendation on the Consent Calendar. f. REPORT
22-0339

CAPITAL IMPROVEMENT PROGRAM STATUS REPORT
AS OF MAY 12, 2022
(Public Works Director Joe SanClemente)
A motion was made to approve recommendation on the Consent Calendar. g. REPORT
22-0324

ACTION MINUTES OF THE PUBLIC WORKS COMMISSION
MEETING OF MARCH 16, 2022
(Public Works Director Joe SanClemente)
A motion was made to approve recommendation on the Consent Calendar. h. REPORT
22-0315

ACTION MINUTES OF THE ECONOMIC DEVELOPMENT

COMMITTEE
MEETING OF MAY 2, 2022
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar. i. REPORT
22-0316

PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar. j. REPORT
22-0317

ACTION MINUTES OF THE PLANNING COMMISSION
REGULAR MEETING OF MAY 17, 2022
(Interim Community Development Director Angela Crespi)
A motion was made to approve recommendation on the Consent Calendar. k. REPORT
22-0331

FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
A motion was made to approve recommendation on the Consent Calendar. l. REPORT
22-0344

SOUTH BAY WORKFORCE INVESTMENT BOARD

QUARTERLY SUMMARY
A motion was made to approve recommendation on the Consent Calendar.

City of Hermosa Beach Page 5 Printed on 6/9/2022
35 City Council Meeting Minutes May 24, 2022
m. REPORT
22-0332

ENDORSEMENT OF ARAKELIAN ENTERPRISES, INC
(DBA ATHENS SERVICES) REQUEST FOR AN ANNUAL

RATE ADJUSTMENT TO THE MAXIMUM RATES

FOR SOLID WASTE SERVICES
(Environmental Programs Manager Douglas Krauss)
A motion was made to approve recommendation on the Consent Calendar. n. REPORT
22-0311

PURCHASE OF POLICE DEPARTMENT VEHICLES
(Police Chief Paul LeBaron)
A motion was made to approve recommendation on the Consent Calendar. o. REPORT
22-0345

APPROVAL OF A REQUEST TO REVISE THE CLASS
SPECIFICATION FOR Geographic Information Systems/Information Technology Analyst AND TO AFFIRM THE BARGAINING UNIT AS

PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
(Human Resources Manager Vanessa Godinez)
A motion was made to approve recommendation on the Consent Calendar.

XII. ITEMS REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION None.

XIII. PUBLIC HEARINGS - TO COMMENCE AT 6:30 P.M.

None.

XIV. MUNICIPAL MATTERS
a. REPORT
22-0326

CITY STAFF RECOMMENDATIONS ON CANNABIS POLICY

OPTIONS
(City Manager Suja Lowenthal)
City Manager Suja Lowenthal presented the staff report.

City Attorney Michael Jenkins outlined the options available to the City Council.

Councilmember Massey made a comment about the negotiations process the proponents shared with the City.

City Attorney Michael Jenkins responded to Councilmember Massey's comment.

Public comments were provided by:

City of Hermosa Beach Page 6 Printed on 6/9/2022
36 City Council Meeting Minutes May 24, 2022
Carolyn Petty
Heidi Swan
Cammie Herbert
Trent Larson
Tom Bakaly
Damian A. Martin
Russ Gilbert
Johnathan Cvetko
Sandy Seamann
Matt McCool
Andrea Valcourt
Laura Pena
Barry Walker
Mayor Detoy closed public comment.

City Clerk Myra Maravilla conducted a roll call and announced a quorum. All Councilmembers were present.

Councilmember Massey made comments regarding the withdrawal proposal and the ban on the delivery of cannabis in the City.

City Manager Suja Lowenthal responded to Councilmember Massey's comments.

A motion was made by Councilmember Armato, seconded by Councilmember Campbell, to oppose the cannabis industry sponsored initiative filed with the City Clerk on November 17, 2021. The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
City Council deliberated on lifting the delivery ban of cannabis in the City, voter education, the cannabis initiative, coordinating a campaign, and a potential tax measure.

City Manager Suja Lowenthal gave an explanation of the industry initiative and made comments regarding voter education and lifting the delivery ban of cannabis in the City.

City Attorney Michael Jenkins gave an explanation regarding a potential tax measure and stated a resolution would be presented to the City Council to place the ballot measure on the ballot. Four votes would be required to place it on the ballot.

A motion was made by Councilmember Massey, seconded by Mayor Pro Tem Jackson, to direct staff to begin preparations to submit a ballot measure to the voters at the General Municipal Election to be held on November 8, 2022, adding a business license tax on cannabis sales should the ban be lifted. The motion City of Hermosa Beach Page 7 Printed on 6/9/2022
37 City Council Meeting Minutes May 24, 2022
carried by the following vote:

Aye: 3 - Jackson, Campbell, and Massey
No: 2 - Mayor Detoy, and Armato

Absent: 0
A motion was made by Councilmember Massey, seconded by Mayor Pro Tem Jackson, to bring back ordinance language to lift the ban on the delivery of cannabis into the city. The motion carried by the following vote:

Aye: 3 - Jackson, Campbell, and Massey
No: 2 - Mayor Detoy, and Armato

Absent: 0
Mayor Pro Tem Jackson spoke.

City Manager Suja Lowenthal spoke.

A motion was made by Councilmember Campbell, seconded by Councilmember Armato, to direct staff to develop an informational impact report for educational purposes covering policy, safety, and health considerations. The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
The City Council recessed at 10:49 p.m.

The City Council reconvened.

A motion was made by Councilmember Massey, seconded by Councilmember Campbell to extend the City Council meeting to 11:30 p.m. The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
b. REPORT
22-0333

EXTENSION OF TEMPORARY OUTDOOR

PERMIT PROGRAMS AND DOWNTOWN LANE

RECONFIGURATION AND UPDATE ON

DEVELOPMENT OF PERMANENT PROGRAMS
(Environmental Programs Manager Doug Krauss)
Environmental Programs Manager Doug Krauss provided a staff report.

The City Council made comments regarding business awareness, parking spaces, unutilized dining decks, public spaces, encroachment fees, CEQA, and other comments regarding dining decks.

City of Hermosa Beach Page 8 Printed on 6/9/2022
38 City Council Meeting Minutes May 24, 2022
City Manager Suja Lowenthal made comments regarding bringing back encroachment fees at a future meeting.

Environmental Programs Manager Doug Krauss responded to City Council's comments and questions.

City Manager Suja Lowenthal spoke.

Public comments were provided by:

Matt McCool
Laura Pena
Sandy Seamann
A motion was made by Councilmember Campbell, seconded by Councilmember Armato, to:

1. Introduce and adopt by four-fifths vote Ordinance No. 22-XXXXU titled, "An Urgency Ordinance of the City of Hermosa Beach, California, extending a Temporary Permit Program for Outdoor Dining/Seating and Outdoor Retail Display to Assist Restaurants, Food, and Retail Establishments During Covid-19; and Extending Temporary Lane Closures to Accommodate Outdoor Permits; and, Setting Forth the Facts Constituting Such Urgency;

2. Receive and provide feedback on the update to the development of permanent versions of the outdoor permit and downtown lane reconfiguration programs, and provide feedback on the charging of fees; and

3. Approve the implementation of short-term refinements to the outdoor dining programs.

The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
A motion was made by Councilmember Massey, seconded by Councilmember Campbell to extend the City Council meeting until 12:00 a.m. midnight. The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
c. REPORT
22-0323

AWARD OF A CONTRACT FOR LANDSCAPE MAINTENANCE
SERVICES TO MERCHANTS LANDSCAPE SERVICES, INC.
(Public Works Director Joe SanClemente)
Public Works Director Joe SanClemente presented the staff report.

There was no public comments for this item.

A motion was made by Councilmember Massey, seconded by Councilmember Armato, to:

1. Award a contract for landscape maintenance services to Merchants Landscape Services, Inc. in the amount of $2,173,789 over four years beginning July 1, 2022 and ending June 30, 2026, with an option to extend for one additional year; City of Hermosa Beach Page 9 Printed on 6/9/2022
39 City Council Meeting Minutes May 24, 2022

2. Authorize the Director of Public Works to establish a $50,000 per year project contingency for a total amount of $200,000;

3. Authorize the City Manager to approve contract amendments up to the amount of the approved project contingency.

4. Authorize the reappropriation of $31,876 from the 2021-22 Budget for Prospective Expenditures to the 2022-23 Budget and transfer of $10,000 from the General Fund to the Lighting/Landscaping/Medians Fund; and&nbsp;

5. Authorize the Mayor to execute and the City Clerk to attest the proposed agreement subject to approval by the City Attorney.

The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0
d. REPORT
22-0327

AWARD A CONTRACT FOR JANITORIAL SERVICES

TO VALLEY MAINTENANCE CORP
(Public Works Director Joe SanClemente)
Public Works Director Joe SanClemente presented the staff report.

Mayor Detoy made comments regarding public restrooms.

There was no public comment for this item.

A motion was made by Councilmember Armato, seconded by Councilmember Campbell, to:

1. Award a contract for janitorial services to Valley Maintenance Corp in the amount of $610,992 over four years beginning July 1, 2022 and ending June 30, 2026 with an option to extend for one additional year;

2. Authorize the Director of Public Works to establish a $10,000 per year project contingency for a total amount of $40,000;

3. Authorize the City Manager to approve contract amendments up to the amount of the approved project contingency; and

4. Authorize the Mayor to execute and the City Clerk to attest the proposed agreement subject to approval by the City Attorney.

The motion carried by the following vote:

Aye: 5 - Mayor Detoy, Jackson, Armato, Campbell, and Massey

Absent: 0

FUTURE AGENDA ITEMS
a. 22-0347 TENTATIVE FUTURE AGENDA ITEMS
XVI. ADJOURNMENT
Mayor Detoy adjourned the meeting at 11:50 p.m. to the Thursday, June 2, 2022 Fiscal Year 2022-2023 Budget Workshop at 5:00 p.m.

City of Hermosa Beach Page 10 Printed on 6/9/2022
40 City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0349
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

CHECK REGISTERS
(Finance Director Viki Copeland)
Recommended Action:

Staff recommends City Council ratify the following check registers.

Attachments:

1. Check Register 5/11/2022

2. Check Register 5/18/2022

3. Check Register 5/25/2022

4. Check Register 6/1/2022
Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 1 of 1 Printed on 9/12/2022
powered by Legistar™ 41
05/11/2022
Check Register

CITY OF HERMOSA BEACH
1 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99681 5/11/2022 14090 ABRAMS, SAMUEL H Parcel 4185 011 011 STREET LIGHT TAX REBATE FY21 105-3105 24.61
14090 Total : 24.61
99682 5/11/2022 20685 AMERICAN GUARD SERVICES, INC. INV49693 CROSSING GUARD SERVICES/APR22 146-2102-4201 19,307.34
20685 Total : 19,307.34
99683 5/11/2022 16660 ATHENS SERVICES 12178019 SWEEPING SERVICES/APR22 001-3104-4201 16,844.52
001-3301-4201 11,225.47
001-3304-4201 1,546.74
001-6101-4201 1,649.27
12178019A STEAM CLEANING/APR22
001-3301-4201 5,493.72
001-3304-4201 1,427.64
12178019B SCRUBBER SERVICES/APR22
001-3301-4201 4,970.84
001-3304-4201 764.74
16660 Total : 43,922.94
99684 5/11/2022 16660 ATHENS SERVICES 12228141 PD SHREDDING SERVICES/MAY22 001-2101-4309 45.39
16660 Total : 45.39
99685 5/11/2022 17271 BARROWS, PATRICK PO 37524 INSTRUCTOR PAYMENTS 001-4601-4221 4,484.20
PO 37525 INSTRUCTOR PAYMENTS
001-4601-4221 3,181.50
17271 Total : 7,665.70
99686 5/11/2022 20396 BENSON, MARY ANN Parcel 4182 019 005 STREET LIGHT TAX REBATE FY21 105-3105 24.61
20396 Total : 24.61
99687 5/11/2022 00163 BRAUN LINEN SERVICE Acct 70664/April 22 PRISONER LAUNDRY MAINT/APR22 001-2101-4306 251.18
00163 Total : 251.18
Attachment 1 42
05/11/2022
Check Register

CITY OF HERMOSA BEACH
2 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99688 5/11/2022 21720 CAPITAL WHOLESALE LIGHTING April 2022 ELECTRICAL MAINT SUPPLIES/APR22 105-2601-4309 1,207.24
21720 Total : 1,207.24
99689 5/11/2022 09632 CDWG W893620 MAT REQ#583933 PRINTER TONER/INK 001-2101-4306 504.47
X011319 MAT REQ#768425 PRINTER TONER/INK
715-1206-4305 165.54
X049555 MAT REQ#768424 PRINTER TONER/INK
715-1206-4305 416.37
09632 Total : 1,086.38
99690 5/11/2022 19277 CHARM-TEX, INC. 0275427-IN TWO JAIL MATTRESSES 001-2101-4306 317.80
19277 Total : 317.80
99691 5/11/2022 09694 CLEAN ENERGY CE12490303 COMPRESSED NATURAL GAS/APR22 715-3109-4310 49.63
09694 Total : 49.63
99692 5/11/2022 18396 COLUMBIA CASCADE COMPANY 54272-67 GREENBELT EXERCISE EQUIPMENT 001-6101-4309 8,355.00
001-6101-4309 604.68
18396 Total : 8,959.68
99693 5/11/2022 20627 COMMERCIAL BUILDING MANAGEMENT 68846 CITYWIDE JANITORIAL MAINT/APR22 001-4204-4201 6,861.00
157-2702-4201 4,296.44
20627 Total : 11,157.44
99694 5/11/2022 09436 COMPLETES PLUS Acct 284080 Apr22 VEHICLE MAINT/REPAIR PARTS/APR22 715-2101-4311 889.18
715-3302-4311 402.91
715-4201-4311 31.61
715-4204-4311 157.44
715-2101-4309 4.26
715-3104-4311 -17.52
715-3109-4311 238.77
09436 Total : 1,706.65
43 05/11/2022
Check Register

CITY OF HERMOSA BEACH
3 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99695 5/11/2022 00364 DEPARTMENT OF JUSTICE 577120 MAT REQ 973990/FINGERPRINTING/APR22 001-1203-4251 322.00
00364 Total : 322.00
99696 5/11/2022 00267 DEPARTMENT OF TRANSPORTATION SL220389 SIGNAL/LIGHT MAINT/JUL21-SEPT21 105-2601-4251 2,343.36
00267 Total : 2,343.36
99697 5/11/2022 11449 DEWEY PEST CONTROL Acct 759408 PEST CONTROL/MAY 22 001-4204-4201 849.00
11449 Total : 849.00
99698 5/11/2022 16922 EMERGENCY RESPONSE CRIME SCENE T2022-244 CLEAN & DISINFECT JAIL CELL 4.25.22 001-2101-4201 750.00
16922 Total : 750.00
99699 5/11/2022 16932 FAMILY THEATRE INC PO 37529 INSTRUCTOR PAYMENTS 001-4601-4221 1,155.00
16932 Total : 1,155.00
99700 5/11/2022 01962 FEDERAL EXPRESS CORP 7-748-05309 MAT REQ#973989/EXPRESS MAIL 001-1203-4201 40.55
01962 Total : 40.55
99701 5/11/2022 06293 FEDEX OFFICE 101660200005 MAT REQ#583803 PRINTING SERVICES 001-1101-4305 141.88
06293 Total : 141.88
99702 5/11/2022 21539 FEHR & PEERS 152479 TRAFFIC COUNTS/JAN22 001-3104-4201 1,782.50
21539 Total : 1,782.50
99703 5/11/2022 19884 FRONTIER 310-318-0113-1203155 EOC ANALOG LINES/MAY22 715-1206-4304 1,244.78
19884 Total : 1,244.78
99704 5/11/2022 19884 FRONTIER 310-372-6373-0311045 PERSONNEL FAX LINE/MAY22 001-1203-4304 60.11
19884 Total : 60.11
44 05/11/2022
Check Register

CITY OF HERMOSA BEACH
4 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99705 5/11/2022 19884 FRONTIER 310-318-8751-0128095 CASHIER TAP LINES/MAY22 001-1204-4304 56.65
19884 Total : 56.65
99706 5/11/2022 14204 HARTZOG & CRABILL, INC. 22-0176 ON-CALL TRAFFIC ENGINEERING SVS/MAR22 001-3104-4201 935.00
14204 Total : 935.00
99707 5/11/2022 09136 HERMOSA AUTOMOTIVE INC 51262 MAT REQ#768705/SMOG CHECK/CERTIFICATE 715-2101-4311 60.00
09136 Total : 60.00
99708 5/11/2022 22222 IK CONSULTING, LLC IK-HB0422 ACCELA CONSULTING SVS/APR 22 715-4201-4201 145.00
22222 Total : 145.00
99709 5/11/2022 19507 INDUSTRIAL TIRE SERVICE INC 99072 TIRES FOR THE BACKHOE 161-3109-4309 1,851.05
19507 Total : 1,851.05
99710 5/11/2022 19314 IPS GROUP INC INV71348 PARKING METER/CREDIT CARD FEES/APR22 001-3302-4201 18,972.72
19314 Total : 18,972.72
99711 5/11/2022 21552 K9 SERVICES LLC HBPD-27 K9 OFFICER MAINT TRAINING/APR22 170-2105-4317 250.00
21552 Total : 250.00
99712 5/11/2022 22601 LEVINE, ISABELLA Citation 38013423 CITATION REFUND - DISMISSED 001-3302 38.00
22601 Total : 38.00
99713 5/11/2022 18274 MAGNUM VENTURE PARTNERS PO 37533 INSTRUCTOR PAYMENTS 001-4601-4221 8,893.50
PO 37534 INSTRUCTOR PAYMENTS
001-4601-4221 5,250.00
18274 Total : 14,143.50
99714 5/11/2022 16556 MALINOWSKI, JOSEPH M Parcel 4187 015 026 STREET LIGHT TAX REBATE FY21 105-3105 24.61
45 05/11/2022
Check Register

CITY OF HERMOSA BEACH
5 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99714 5/11/2022 16556 MALINOWSKI, JOSEPH M (Continued) Total : 24.61 99715 5/11/2022 22444 MV CHENG & ASSOCIATES INC 04302022 TEMP BUDGET ANALYST/APR22 001-2101-4201 7,345.00
22444 Total : 7,345.00
99716 5/11/2022 21033 NV5, INC 249010 SEWER IMPROVEMENT SVS/NOV21 160-8421-4201 8,120.00
253813 SEWER IMPROVEMENT SVS/DEC21
160-8421-4201 11,340.00
257625 SEWER IMPROVEMENT SVS/JAN22
160-8421-4201 15,855.00
259954 SEWER IMPROVEMENT SVS/FEB22
160-8421-4201 3,920.00
264952 LIGHTING & LANDSCAPE STUDY/MAR22
105-2601-4201 940.00
264958 SEWER LEVY ASSISTANCE/MAR22
160-3102-4201 12,600.00
21033 Total : 52,775.00
99717 5/11/2022 13114 ODP BUSINESS SOLUTIONS, LLC 239680639001 MAT REQ 838520/OFFICE SUPPLIES 157-2702-4305 37.66
001-4201-4305 62.26
240322962001 MAT REQ 791079/OFFICE SUPPLIES
001-1208-4305 172.42
240727243001 INK CARTRIDGES
001-4202-4305 397.56
001-4202-4305 37.77
241515626001 OFFICE CHAIR
001-4202-4305 145.67
001-4202-4305 13.84
13114 Total : 867.18
99718 5/11/2022 14693 PARS 50563 ALT RETIREMENT PLAN ADMIN FEE/MAR22 001-1101-4185 6.80
001-1204-4185 0.63
001-3302-4185 3.15
001-4204-4185 5.90
001-4101-4185 6.59
46 05/11/2022
Check Register

CITY OF HERMOSA BEACH
6 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99718 5/11/2022 14693 PARS (Continued)
001-4201-4185 6.59
001-4601-4185 105.64
14693 Total : 135.30
99719 5/11/2022 18547 PETTY CASH PO 37550 PETTY CASH/JAN 22- APR22 001-1201-4315 40.00
001-1204-4305 43.79
001-2101-4305 75.85
001-4101-4305 173.74
001-4202-4305 9.84
001-4601-4201 20.00
001-4601-4308 100.00
001-6101-4309 78.84
170-2105-4201 50.00
715-2101-4311 8.26
715-4206-4309 23.43
001-2101-4313 108.64
001-4601-4305 25.19
18547 Total : 757.58
99720 5/11/2022 01911 PROVIDENCE MEDICAL GuarantorID600000285 MAT REQ#973991/PRE-EMPLOYMENT PHYSICALS 001-1203-4320 719.00
01911 Total : 719.00
99721 5/11/2022 22538 R3 CONSULTING GROUP 117277 SOLID WASTE MARKET/SVS ANALYSIS/APR22 001-2149 4,132.50
22538 Total : 4,132.50
99722 5/11/2022 20603 RECWEST OUTDOOR PRODUCTS, INC. 20255 MEMORIAL BENCH 001-6101-5402 2,217.00
001-6101-5402 178.03
20267 MEMORIAL BENCH PLAQUE
001-6101-5401 217.00
001-6101-5401 16.63
20603 Total : 2,628.66
99723 5/11/2022 13255 RED SECURITY GROUP, LLC 75699 MAT REQ#874766/LOCKSMITH SERVICES 001-3301-4309 290.16
47 05/11/2022
Check Register

CITY OF HERMOSA BEACH
7 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99723 5/11/2022 13255 RED SECURITY GROUP, LLC (Continued) Total : 290.16 99724 5/11/2022 20932 RICHIE, JOHNATHAN PO 37537 INSTRUCTOR PAYMENTS 001-4601-4221 4,448.50
20932 Total : 4,448.50
99725 5/11/2022 16970 RYDER, LISA R PO 37556 GREEN BUSINESS PROGRAM SVS/JAN-MAR22 001-1201-4201 6,000.00
16970 Total : 6,000.00
99726 5/11/2022 16425 SAFEWAY INC VONS 722628-042122-3517 MAT REQ#586935/SURFERS WALK OF FAME 001-4601-4308 204.38
16425 Total : 204.38
99727 5/11/2022 17903 SHERWIN-WILLIAMS 4767-9 MAT REQ 638770/PAINTING SUPPLIES 001-3104-4309 146.97
17903 Total : 146.97
99728 5/11/2022 19829 SITEONE LANDSCAPE SUPPLY, LLC Cust#129138 Apr22 LANDSCAPING SUPPLIES/APRIL 22 STMT 001-6101-4309 1,750.64
19829 Total : 1,750.64
99729 5/11/2022 00159 SOUTHERN CALIFORNIA EDISON CO 700382668983 ELECTRICITY/3.29.22-4.27.22 001-3104-4303 795.15
105-2601-4303 2,912.86
001-4204-4303 1,568.47
00159 Total : 5,276.48
99730 5/11/2022 20236 SPECTRUM BUSINESS 8448300300046247 CITY HALL CABLE/MAY 22 715-4204-4201 114.87
20236 Total : 114.87
99731 5/11/2022 10412 STERICYCLE 3005981714 MEDICAL WASTE DISPOSAL/MAY22 001-2101-4201 78.75
10412 Total : 78.75
99732 5/11/2022 22203 SWA GROUP INC 189066 LANDSCAPING DESIGN SVS/JAN22 001-4202-4201 12,000.00
189300 LANDSCAPING DESIGN SVS/FEB22
001-4202-4201 9,000.00
48 05/11/2022
Check Register

CITY OF HERMOSA BEACH
8 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99732 5/11/2022 22203 SWA GROUP INC (Continued)
189681 LANDSCAPING DESIGN SVS/MAR22
001-4202-4201 3,026.39
22203 Total : 24,026.39
99733 5/11/2022 19082 T-MOBILE Acct 946625962 RECORDS/WATCH COMMAND/CELLS/APR22 001-2101-4304 13.29
19082 Total : 13.29
99734 5/11/2022 08207 UNDERGROUND SERVICE ALERT 420220319 UNDERGROUND SERVICE ALERT/APR22 160-3102-4201 84.25
08207 Total : 84.25
99735 5/11/2022 01206 ZUMAR INDUSTRIES INC 96657 MAT REQ 583759/STREET SIGN MAINTENANCE 001-3104-4309 281.28
96688 MAT REQ 583760/STREET SIGN MAINTENANCE
001-3104-4309 483.71
96689 MAT REQ 583761/STREET SIGN MAINTENANCE
001-3104-4309 608.71
01206 Total : 1,373.70
7812457 5/5/2022 13838 PITNEY BOWES INC 5.11.22 Check Run POSTAGE METER REFILL/MAY22 001-1208-4305 1,000.00
13838 Total : 1,000.00
56 Vouchers for bank code : boa Bank total : 255,060.90 56 Vouchers in this report Total vouchers : 255,060.90
49 05/11/2022
Check Register

CITY OF HERMOSA BEACH
9 4:53:10PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
"I hereby certify that the demands or claims covered by the checks listed on pages 1 to 9 inclusive, of the check
register for 5/22/2022 are accurate funds are available for payment, and are in conformance to the budget."
By
Finance Director
Date 5/11/22
50 05/18/2022
Check Register

CITY OF HERMOSA BEACH
1 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99736 5/18/2022 22108 ARCHITAG LLP 2017-16 CLARK BLDG RENO SVS/APR22 301-8689-4201 3,500.00
22108 Total : 3,500.00
99737 5/18/2022 00321 AT&T 960 461-1985 555 7 PD COMPUTER CIRCUITS/MAY22 001-2101-4304 239.57
00321 Total : 239.57
99738 5/18/2022 22610 BARNACLES BAR & GRILL 03222022 REFUND DEPOSIT-STREET DECK REMOVED 001-2110 5,000.00
22610 Total : 5,000.00
99739 5/18/2022 22609 BLUE PEAK IMPORT INC 03222022 REFUND DEPOSIT-STREET DECK REMOVED 001-2110 1,666.66
22609 Total : 1,666.66
99740 5/18/2022 10838 CANON BUSINESS SOLUTIONS, INC 122282516 COMM RESOURCES COPIER INSPECTION 715-1208-4201 100.00
10838 Total : 100.00
99741 5/18/2022 09632 CDWG R903493 ADOBE RENEWAL FOR 2022 715-1206-4201 5,709.00
W717984 PC FOR DEP CITY CLERK IN COUNCIL CHAMBER
715-1206-5401 785.13
715-1206-5401 72.96
09632 Total : 6,567.09
99742 5/18/2022 20781 COUNTY OF LOS ANGELES C0010406 FIRE PROTECTION SERVICES/JUN22 001-2202-4251 492,878.00
180-2202-4251 3,588.52
301-2202-5601 31,643.03
20781 Total : 528,109.55
99743 5/18/2022 19981 CPRS DISTRICT 9 INV-6 CPRS D9 AWARDS INSTALLATION 001-4601-4317 170.00
19981 Total : 170.00
99744 5/18/2022 11449 DEWEY PEST CONTROL Account 1233239 SEWER RAT ABATEMENT/MAY 22 160-3102-4201 278.00
Attachment 251
05/18/2022
Check Register

CITY OF HERMOSA BEACH
2 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99744 5/18/2022 11449 DEWEY PEST CONTROL (Continued) Total : 278.00 99745 5/18/2022 13766 DISPENSING TECHNOLOGY CORP 14601 COLD ASPHALT PATCH 001-3104-4309 1,017.01
001-3104-4309 87.78
13766 Total : 1,104.79
99746 5/18/2022 19935 DUNN-EDWARDS CORPORATION 2167088680 MAT REQ#638775/PAINT SUPPLIES 001-6101-4309 71.20
19935 Total : 71.20
99747 5/18/2022 06293 FEDEX OFFICE Order#101604YQ31 MAT REQ#768504 PRINTING SERVICES 001-1101-4305 6.58
06293 Total : 6.58
99748 5/18/2022 07910 FOSTER-GORDON MANUFACTURING CO 35087 CITY COUNCIL PRESENTATION FOLDERS 001-1101-4305 894.81
07910 Total : 894.81
99749 5/18/2022 15141 HONDA MD INC, STEPHAN T 00139820 DETAINEE BLOOD DRAW/APR22 001-2101-4201 254.40
15141 Total : 254.40
99750 5/18/2022 21849 INTERWEST CONSULTING GROUP INC 78193 CIP 669-CONSTRUCTION MGMT/APR22 301-8669-4201 17,500.00
21849 Total : 17,500.00
99751 5/18/2022 19314 IPS GROUP INC INV71737 PARKING METER PARTS 715-3302-5401 2,685.36
715-3302-5401 251.94
19314 Total : 2,937.30
99752 5/18/2022 20359 KEYSTONE UNIFORM DEPOT 068615 OFFICER UNIFORMS - JULIEN 001-2101-4314 29.95
001-2101-4314 3.07
068632 OFFICER UNIFORMS - JULIEN
001-2101-4314 1,338.12
001-2101-4314 128.44
20359 Total : 1,499.58
52 05/18/2022
Check Register

CITY OF HERMOSA BEACH
3 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99753 5/18/2022 19487 M6 CONSULTING INC 2107 PLAN CHECKS/APR22 001-4202-4201 6,245.00
2108 PLAN CHECKS/SKECHERS PROJ/APR22
001-2148 222.50
19487 Total : 6,467.50
99754 5/18/2022 15912 MARTIN CHEVROLET 818381 MAT REQ 768712/FLEET MAINT PARTS 715-2101-4311 39.78
15912 Total : 39.78
99755 5/18/2022 18071 MERCHANTS LANDSCAPE SERVICES 59827 CITYWIDE LANDSCAPING SVS/APR22 001-6101-4201 21,200.00
59828 MEDIANS/PARKWAY LANDSCAPE SVS/APR22
105-2601-4201 3,600.00
18071 Total : 24,800.00
99756 5/18/2022 16541 MID-CITY MAILING SERVICES CORP 27007 SEWER LEVY FEE INCREASE NOTICE 160-3102-4201 5,694.89
16541 Total : 5,694.89
99757 5/18/2022 18437 MIG 0075142 CLIMATE CHANGE CONSULTANT/APR22 146-8101-4201 1,692.00
18437 Total : 1,692.00
99758 5/18/2022 22509 MORROW-MEADOWS CORP 11260 GENERATOR @ 35TH ST-SCE OUTAGE 161-3109-4201 939.56
22509 Total : 939.56
99759 5/18/2022 11539 NETRIX LLC DI-000238 DATTO SERVER CLOUD LIC/APR22 715-1206-4201 1,957.55
11539 Total : 1,957.55
99760 5/18/2022 21033 NV5, INC 269711 SEWER LEVY ASSISTANCE/APR22 160-3102-4201 5,250.00
21033 Total : 5,250.00
99761 5/18/2022 13114 ODP BUSINESS SOLUTIONS, LLC 243342800001 MAT REQ 838521/OFFICE SUPPLIES 001-4101-4305 14.22
243343366001 MAT REQ 838521/OFFICE SUPPLIES
001-4101-4305 8.74
53 05/18/2022
Check Register

CITY OF HERMOSA BEACH
4 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99761 5/18/2022 13114 ODP BUSINESS SOLUTIONS, LLC (Continued) 243343366002 MAT REQ 838521/OFFICE SUPPLIES
001-4101-4305 76.64
243619120001 MAT REQ 583582/OFFICE SUPPLIES
001-4202-4305 64.19
243886369001 MAT REQ 583935/OFFICE SUPPLIES
001-2101-4305 58.34
243897378001 MAT REQ 583936/OFFICE SUPPLIES
001-2101-4305 65.11
13114 Total : 287.24
99762 5/18/2022 21596 ONWARD ENGINEERING 6314 INSPECTION SVS SKECHERS TUNNEL/APR22 001-2148 17,020.00
21596 Total : 17,020.00
99763 5/18/2022 03282 REDONDO BEACH, CITY OF 575156 CITY PROSECUTOR SERVICES/APR22 001-1132-4201 16,667.00
03282 Total : 16,667.00
99764 5/18/2022 19829 SITEONE LANDSCAPE SUPPLY, LLC 117500115-001 MAT REQ 638568/LANDSCAPING SUPPLIES 001-6101-4309 227.44
19829 Total : 227.44
99765 5/18/2022 00170 SOCAL GAS 170-781-3287 9 YARD CNG STATION FUEL/APR22 715-3104-4310 147.73
715-4204-4310 147.73
715-6101-4310 147.72
00170 Total : 443.18
99766 5/18/2022 00159 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/4.6.22-5.5.22 105-2601-4303 66.12
700156101336 ELECTRICITY/3.29.22-4.27.22
001-4204-4303 10,680.39
001-6101-4303 259.30
700222378305 ELECTRICITY/3.29.22-4.27.22
001-6101-4303 1,667.34
700234897163 ELECTRICITY/4.6.22-5.5.22
001-3304-4303 2,598.26
700304673105 ELECTRICITY/4.6.22-5.5.22
54 05/18/2022
Check Register

CITY OF HERMOSA BEACH
5 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99766 5/18/2022 00159 SOUTHERN CALIFORNIA EDISON CO (Continued) 160-3102-4201 81.48
700313445137 ELECTRICITY/MAR22 - APR22
105-2601-4303 22,967.74
00159 Total : 38,320.63
99767 5/18/2022 21146 TIREHUB LLC 27159883 MAT REQ 768715/VEHICLE TIRES 715-2101-4311 630.72
27159890 MAT REQ 768716/VEHICLE TIRES
715-2101-4311 419.52
27159898 MAT REQ 768717/VEHICLE TIRES
715-2101-4311 419.52
21146 Total : 1,469.76
99768 5/18/2022 15901 TRANSTECH ENGINEERS, INC 20215694 WIRELESS PLAN CHECKS/APR22 PROJ220309 001-4202-4201 840.00
20215695 WIRELESS PLAN CHECKS/APR22 PROJ220310
001-4202-4201 840.00
20215696 WIRELESS PLAN CHECKS/APR22 PROJ220311
001-4202-4201 840.00
15901 Total : 2,520.00
99769 5/18/2022 22536 TRIFORMIS CORPORATION 4006996 COUNTERTOP COMPOST CONTAINERS 001-1201-4201 679.04
001-1201-4201 64.51
22536 Total : 743.55
99770 5/18/2022 14528 UNION BANK OF CALIFORNIA, PARS #6746019200 PO 37008 PARS/OPEB CONTRIBUTIONS/MAY22 001-1101-4190 54.00
001-1121-4190 560.00
001-1201-4190 2,224.00
001-1202-4190 1,334.00
001-1203-4190 537.00
001-1204-4190 956.00
001-2101-4190 19,276.00
001-3104-4190 896.00
001-3301-4190 102.00
001-3302-4190 2,793.00
001-4101-4190 1,408.00
55 05/18/2022
Check Register

CITY OF HERMOSA BEACH
6 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99770 5/18/2022 14528 UNION BANK OF CALIFORNIA, PARS #6746019200 (Continued) 001-4201-4190 1,282.00
001-4202-4190 1,395.00
001-4204-4190 664.00
001-4601-4190 835.00
001-6101-4190 845.00
105-2601-4190 171.00
160-3102-4190 251.00
161-3109-4190 183.00
715-4206-4190 423.00
14528 Total : 36,189.00
99771 5/18/2022 18753 UNITED SITE SERVICES 114-12453292 ADDED SINK @SOUTH PARK/SEPT21 301-8669-4201 436.21
114-12516812 SUPPLIES FOR ADDED SINK @SOUTH PARK
301-8669-4201 19.01
114-12553951 ADDED SINK @SOUTH PARK/OCT21
301-8669-4201 408.53
114-12644256 ADDED SINK @SOUTH PARK/NOV21
301-8669-4201 408.53
114-12731157 ADDED SINK @SOUTH PARK/DEC21
301-8669-4201 408.53
114-12812304 ADDED SINK @SOUTH PARK/JAN22
301-8669-4201 408.53
114-12895891 ADDED SINK @SOUTH PARK/FEB22
301-8669-4201 438.53
114-12977716 ADDED SINK @SOUTH PARK/MAR22
301-8669-4201 438.53
18753 Total : 2,966.40
99772 5/18/2022 04768 UPTIME COMPUTER SERVICE 32459 MONTHLY PRINTER MAINTENANCE/JUN22 715-1206-4201 587.38
04768 Total : 587.38
99773 5/18/2022 09374 US ARMOR 37396 CONCEALABLE ARMOR VEST-LORATTA 001-2101-4350 762.00
001-2101-4350 50.17
09374 Total : 812.17
56 05/18/2022
Check Register

CITY OF HERMOSA BEACH
7 5:21:52PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99774 5/18/2022 01206 ZUMAR INDUSTRIES INC 96726 MAT REQ 638935/STREET SIGN MAINTENANCE 001-3104-4309 573.67
96727 MAT REQ 638941/STREET SIGN MAINTENANCE
001-3104-4309 552.98
01206 Total : 1,126.65
5182022 5/18/2022 10668 EXXON MOBIL BUSINESS FLEET 80810902 VEHICLE FUEL 04/11/22-05/10/22 001-1250 121.54
715-3302-4310 1,935.63
715-2101-4310 7,119.73
715-4204-4310 515.15
715-4206-4310 189.00
715-6101-4310 580.08
715-3104-4310 666.74
10668 Total : 11,127.87
40 Vouchers for bank code : boa Bank total : 747,249.08 40 Vouchers in this report Total vouchers : 747,249.08
"I hereby certify that the demands or claims covered by the checks listed on pages 1 to 7 inclusive, of the check
register for 5/18/2022 are accurate funds are available for payment, and are in conformance to the budget."
By
Finance Director
Date 5/18/22
57 05/25/2022
Check Register

CITY OF HERMOSA BEACH
1 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
72288 5/24/2022 00170 SOCAL GAS 097 904 5900 3 CITY-OWNED BLDGS/NATURAL GAS/APR22 001-4204-4303 106.91
00170 Total : 106.91
72359 5/24/2022 00170 SOCAL GAS 102 104 5900 3 CITY-OWNED BLDGS/NATURAL GAS/APR22 001-4204-4303 88.77
00170 Total : 88.77
72573 5/24/2022 00170 SOCAL GAS 115 404 6900 1 CITY-OWNED BLDGS/NATURAL GAS/APR22 001-4204-4303 158.07
00170 Total : 158.07
72927 5/24/2022 00170 SOCAL GAS 139 104 4600 7 CITY-OWNED BLDGS/NATURAL GAS/APR22 001-4204-4303 14.30
00170 Total : 14.30
72981 5/24/2022 00170 SOCAL GAS 141 204 4600 1 CITY-OWNED BLDGS/NATURAL GAS/APR22 001-4204-4303 19.75
00170 Total : 19.75
99775 5/25/2022 16513 4IMPRINT 9889424 PROMO ITEMS FOR FIESTA HERMOSA 001-3302-4201 5,180.00
001-3302-4201 474.53
16513 Total : 5,654.53
99776 5/25/2022 13361 AT&T MOBILITY 287298411168X0510202 PD/CSO CELL PHONES/APR22 001-2101-4304 1,547.18
001-3302-4304 142.98
13361 Total : 1,690.16
99777 5/25/2022 13361 AT&T MOBILITY 287016141723X0514202 PW DIRECTOR/INSPECTOR CELL PHONES/APR22 001-4202-4304 164.63
13361 Total : 164.63
99778 5/25/2022 13361 AT&T MOBILITY 287301168383X0510202 EMERGENCY MANAGER CELL PHONE/APR22 001-1201-4304 49.07
13361 Total : 49.07
99779 5/25/2022 21282 BEEDY, JIM PO 37593 REIMBURSEMENT-AXEL FOR PD ATV Attachment 358
05/25/2022
Check Register

CITY OF HERMOSA BEACH
2 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99779 5/25/2022 21282 BEEDY, JIM (Continued)
715-2101-4311 256.44
21282 Total : 256.44
99780 5/25/2022 20942 BEST BEST & KRIEGER LLP 931235 GENERAL CITY ATTORNEY SVS/MAR 22 001-1131-4201 19,417.50
931236 ATTNY SVS/PUBLIC RECORDS REQUESTS/MAR22
001-1131-4201 15,094.00
931237 ATTNY SVS/COVID EMERGENCY RESP/MAR 22
157-2702-4201 4,325.50
931238 ATTNY SVS/ADA/DISABILITY ISSUES/MAR 22
001-1203-4201 6,601.00
931239 CITY ATTORNEY SVS/LAND USE/MAR 22
001-1131-4201 5,186.50
931240 CITY ATTNY SVS/ROTH V. TRAN/MAR 22
705-1133-4201 1,016.00
931241 CITY ATTNY SVS/FANGARY V CITY HB/MAR 22
705-1133-4201 6,639.60
931242 CITY ATTNY SVS/MUZATKO V CITY HB/MAR 22
705-1133-4201 16,848.44
931243 CITY ATTNY SVS/HUMAN RESOURCES/MAR 22
001-1203-4201 3,465.00
931244 CITY ATTNY SVS/TELECOMMUNICATIONS/MAR 22
001-1131-4201 2,007.50
931245 CITY ATTNY SVS/PW CONSTRUCTION/MAR 22
001-1131-4201 1,127.50
20942 Total : 81,728.54
99781 5/25/2022 06409 BLUE DIAMOND MATERIALS 2661028 MAT REQ 583594/ASPHALT 001-3104-4309 104.50
06409 Total : 104.50
99782 5/25/2022 21651 BLUMENFIELD, DALTON PO 37622 SPRING 2022 TUITION REIMBURSEMENT 001-2101-4317 3,288.72
21651 Total : 3,288.72
99783 5/25/2022 00262 CALIFORNIA MARKING DEVICE 7009 MAT REQ 583841/NAMEPLATES 001-2101-4305 72.27
59 05/25/2022
Check Register

CITY OF HERMOSA BEACH
3 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99783 5/25/2022 00262 CALIFORNIA MARKING DEVICE (Continued) Total : 72.27 99784 5/25/2022 09632 CDWG X508452 MAT REQ 583943 PRINTER TONER/INK 001-2101-4305 994.19
09632 Total : 994.19
99785 5/25/2022 22602 CEROFECI, RONETTE Parcel 4169 027 033 SEWER/STREET LIGHT REBATE FY21 001-6871 126.60
105-3105 24.61
22602 Total : 151.21
99786 5/25/2022 20855 CERVANTES, JAIME L. 4132 CORING/JACK HAMMER TOOL REPAIR 001-3104-4309 1,994.36
001-3104-4309 135.31
20855 Total : 2,129.67
99787 5/25/2022 21871 COLANTUONO, HIGHSMITH & 51751 LEGAL SERVICES/UUT LAWSUIT/APR22 705-1133-4201 148.66
21871 Total : 148.66
99788 5/25/2022 17920 CWE CORPORATION 22090 LOT C REPAIR PLANS/NOV21-JAN22 301-8699-4201 100,844.90
22177 LOT C REPAIR PLANS/FEB-MAR22
301-8699-4201 23,271.90
17920 Total : 124,116.80
99789 5/25/2022 22389 DAVIS, CHRISTINA PO 37579 INSTRUCTOR PAYMENT CLASSES THRU 5/25/22 001-4601-4221 10,760.91
22389 Total : 10,760.91
99790 5/25/2022 00267 DEPARTMENT OF TRANSPORTATION SL220993 SIGNAL/LIGHT MAINT/JAN22-MAR22 105-2601-4251 3,281.12
00267 Total : 3,281.12
99791 5/25/2022 22608 DEUTSCH, MELINDA PO 37596 REFUNDS PERMITS-03517-GP,08986-VP,08987-VP 001-3843 120.00
22608 Total : 120.00
99792 5/25/2022 15059 EVANS, MARLIN K. PO 37580 INSTRUCTOR PAYMENT/CLASS NO. 9936 001-4601-4221 248.18
60 05/25/2022
Check Register

CITY OF HERMOSA BEACH
4 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99792 5/25/2022 15059 EVANS, MARLIN K. (Continued) Total : 248.18 99793 5/25/2022 06293 FEDEX OFFICE 101604Z0J1 MAT REQ 768505 PRINTING SERVICES 001-1101-4305 22.34
06293 Total : 22.34
99794 5/25/2022 20842 FLORES, ANTHONY PO 37624 SPRING 2022 TUITION REIMBURSEMENT 001-2101-4317 3,240.00
20842 Total : 3,240.00
99795 5/25/2022 22614 FONOIMOANA, TOA ACCT#001-00857905 REFUND DEPOSIT-STREET DECK REMOVAL 001-2110 1,000.00
22614 Total : 1,000.00
99796 5/25/2022 19884 FRONTIER 209-188-4669-714985 LANDLINES/COMPUTER LINKS/MAY22 001-3302-4304 87.79
001-2101-4304 893.66
001-4204-4321 234.06
001-4202-4304 62.29
001-3304-4304 62.11
001-1204-4304 60.11
715-1206-4304 1,473.92
19884 Total : 2,873.94
99797 5/25/2022 19884 FRONTIER 209-190-0013-1206175 PD COMPUTER CIRCUITS/MAY22 001-2101-4304 906.48
19884 Total : 906.48
99798 5/25/2022 19884 FRONTIER 323-155-6779-0822065 FIBER OPTIC LINE/MAY22 715-1206-4201 227.41
19884 Total : 227.41
99799 5/25/2022 19884 FRONTIER 310-318-9210-0827185 PD JAIL BREATHALYZER/MAY22 001-2101-4304 79.02
19884 Total : 79.02
99800 5/25/2022 19884 FRONTIER 310-379-0652-1216195 EOC LANDLINES/MAY22 001-1201-4304 68.55
19884 Total : 68.55
61 05/25/2022
Check Register

CITY OF HERMOSA BEACH
5 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99801 5/25/2022 19884 FRONTIER 310-372-6186-0831895 2ND FLOOR CANON FAX/MAY22 001-1121-4304 12.79
001-1141-4304 12.79
001-1201-4304 12.79
001-1202-4304 12.79
001-1203-4304 12.77
19884 Total : 63.93
99802 5/25/2022 22096 GALLATIN INVESTIGATIONS 2022-0003 BACKGROUND CHECK/HOWES 001-2101-4201 1,236.00
2022-0003P POLYGRAPH EXAM/HOWES
001-2101-4201 200.00
22096 Total : 1,436.00
99803 5/25/2022 20756 GHD, INC. 380-0013316 PIER REPAIR PROJECT/APR22 122-8629-4201 8,022.75
20756 Total : 8,022.75
99804 5/25/2022 10836 GRAINGER 9313912173 MAT REQ 768723/MAINTENANCE SUPPLIES 715-4206-4311 48.65
9315490798 MAT REQ 583590/MAINT SUPPLIES
001-4202-4305 355.04
10836 Total : 403.69
99805 5/25/2022 14204 HARTZOG & CRABILL, INC. 22-0285 ON-CALL TRAFFIC ENGINEERING SVS/APR22 001-3104-4201 1,346.68
14204 Total : 1,346.68
99806 5/25/2022 21413 HATCH, BRYAN S Parcel 4186 019 037 STREET LIGHT & SEWER TAX REBATE/FY21 001-6871 126.60
105-3105 24.61
21413 Total : 151.21
99807 5/25/2022 07547 HINDERLITER DE LLAMAS AND ASSC SIN017445 SALES/USE TAX AUDIT SVS/APR-JUN22 001-1202-4201 1,855.40
07547 Total : 1,855.40
99808 5/25/2022 22540 IOPREDICT, INC. 1479 REC SUPERVISOR ONLINE EXAM 001-1203-4201 390.00
62 05/25/2022
Check Register

CITY OF HERMOSA BEACH
6 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99808 5/25/2022 22540 IOPREDICT, INC. (Continued) Total : 390.00 99809 5/25/2022 05356 JOHN L HUNTER AND ASSOC INC HB1MS412203 MUNI STORM WATER PROG ADMIN/MAR22 161-3109-4201 2,172.50
05356 Total : 2,172.50
99810 5/25/2022 21552 K9 SERVICES LLC HBPD-28 FOOD FOR K9 CHARLIE 170-2105-4309 47.00
170-2105-4309 3.41
21552 Total : 50.41
99811 5/25/2022 22502 KELLY SPICERS INC 2904720 COPIER/PRINTER PAPER 8.5X11 #1501116 001-1208-4305 1,720.00
001-1208-4305 154.41
22502 Total : 1,874.41
99812 5/25/2022 22615 LA COUNTY REGISTRAR RECORDER PO 37578 CEQA EXEMPTION-CIP 629 MUNI PIER REPAIRS 122-8629-4201 75.00
22615 Total : 75.00
99813 5/25/2022 00118 LA SUPERIOR COURT - TORRANCE PO 37626 CITATION PAYMENT SURCHARGES/APR22 001-3302 47,146.20
00118 Total : 47,146.20
99814 5/25/2022 20771 LA UNIFORMS & TAILORING INC 12430 MAT REQ 583940/PD UNIFORMS/OFF. HONDA 001-2101-4314 1,109.50
20771 Total : 1,109.50
99815 5/25/2022 22611 LANDIS, LUCILLE Incident 128339 AMBULANCE TRANSPORT FEE REFUND 001-3840 156.13
22611 Total : 156.13
99816 5/25/2022 22299 LAW OFFICE OF C PATRICK HAMBLI 5876 LEGAL SVS PERSONNEL/MAR22 001-1203-4201 544.50
22299 Total : 544.50
99817 5/25/2022 22571 LE, KATHERINE PO 37605 REFUND PARKING PERMIT#07521-E 001-3843 143.00
22571 Total : 143.00
63 05/25/2022
Check Register

CITY OF HERMOSA BEACH
7 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99818 5/25/2022 02175 LIEBERT CASSIDY WHITMORE 215570 CLIENT/MATTER #HE050-00001 001-1203-4201 2,500.48
215571 CLIENT/MATTER #HE050-00086
001-1203-4201 1,652.00
215572 CLIENT/MATTER #HE050-00088
001-1203-4201 2,926.50
02175 Total : 7,078.98
99819 5/25/2022 18071 MERCHANTS LANDSCAPE SERVICES 59886 BAMBOO REMOVAL ON GREENBELT 125-8548-4201 1,400.00
59887 INSTALL NEW PLANTS ON GREENBELT
125-8548-4201 984.00
59925 IRRIGATION REPAIRS
301-8669-4201 4,870.00
18071 Total : 7,254.00
99820 5/25/2022 21033 NV5, INC 264964 GREENWICH VILLAGE UUAD DESIGN/MAR22 001-2133 3,362.50
21033 Total : 3,362.50
99821 5/25/2022 13114 ODP BUSINESS SOLUTIONS, LLC 242537129001 MAT REQ 583591/OFFICE SUPPLIES 001-4202-4305 55.54
13114 Total : 55.54
99822 5/25/2022 20884 ORANGE COUNTY SHERIFF'S DEPT. PO 37632 MOTORCYCLE ACADEMY-RODRIGUEZ 001-2101-4312 1,313.34
20884 Total : 1,313.34
99823 5/25/2022 22071 PARKS COFFEE CALIFORNIA, INC. 70089577 PD COFFEE SVS/APR 22 001-2101-4305 93.66
001-2101-4306 93.65
22071 Total : 187.31
99824 5/25/2022 18411 PLATA, YUNUEN PO 37639 MILEAGE & PARKING REIMB/TR906 001-2101-4313 103.62
18411 Total : 103.62
99825 5/25/2022 19853 POMERANITZ, EFRAT G. PO 37633 INSTRUCTOR PAYMENT CLASSES THRU 5.25.22 001-4601-4221 3,324.39
64 05/25/2022
Check Register

CITY OF HERMOSA BEACH
8 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99825 5/25/2022 19853 POMERANITZ, EFRAT G. (Continued) Total : 3,324.39 99826 5/25/2022 10775 PRICE, HELEN Parcel 4182 021 030 SEWER & STREET LIGHT TAX REBATE/FY21 001-6871 126.60
105-3105 24.61
10775 Total : 151.21
99827 5/25/2022 01911 PROVIDENCE MEDICAL GuarantorID600000284 MAT REQ 973992/PRE-EMPLOYMENT PHYSICAL 001-1203-4320 541.00
01911 Total : 541.00
99828 5/25/2022 13255 RED SECURITY GROUP, LLC 75874 MAT REQ 638845/LOCKSMITH SERVICES 001-3301-4309 131.40
13255 Total : 131.40
99829 5/25/2022 08837 REDONDO BEACH, CITY OF 575146 DIESEL FUEL PURCHASE/JAN22 715-2201-4310 877.18
715-3104-4310 175.67
575147 DIESEL FUEL PURCHASE/FEB22
715-2201-4310 631.55
715-3102-4310 374.92
08837 Total : 2,059.32
99830 5/25/2022 20061 REGIONAL TAP SERVICE CENTER 6015575 BUS PASS SALES/JAN22 001-1204-4251 20.00
6015816 BUS PASS SALES/FEB22
001-1204-4251 30.00
6016142 BUS PASS SALES/MAR22
145-3403-4251 40.00
001-1204-4251 107.50
6016497 BUS PASS SALES/APR22
001-1204-4251 10.00
20061 Total : 207.50
99831 5/25/2022 20932 RICHIE, JOHNATHAN PO 37583 INSTRUCTOR PAYMENT CLASSES THRU 5.28.22 001-4601-4221 8,466.50
20932 Total : 8,466.50
99832 5/25/2022 15582 ROADLINE PRODUCTS INC 17515 RED PAINT FOR CURB PAINTING 001-3104-4309 792.50
65 05/25/2022
Check Register

CITY OF HERMOSA BEACH
9 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99832 5/25/2022 15582 ROADLINE PRODUCTS INC (Continued) 001-3104-4309 71.49
15582 Total : 863.99
99833 5/25/2022 22455 RODRIGUEZ, GEROLD PO 37641 PER DIEM-MOTORCYCLE ACADEMY 001-2101-4312 150.00
22455 Total : 150.00
99834 5/25/2022 22138 ROSS, SHERI E HM5-2022 ZOOM CITATION HEARINGS/MAY22 001-1201-4201 450.00
22138 Total : 450.00
99835 5/25/2022 09870 RYDIN DECAL 391226 MONTHLY PARKING LOT PERMITS 001-1204-4305 1,587.00
001-1204-4305 62.08
09870 Total : 1,649.08
99836 5/25/2022 03353 SBCU VISA 002821 CC TR#909 LUNCH 4.3.22 001-1201-4317 23.34
02D0034513168 CC PD WATER DELIVERY/APR22
001-2101-4305 273.63
0407202201 CC BAHAVIOR ANALYSIS TRAINING
001-2101-4312 575.00
1101454 CC DOGGIE WASTE BAGS/DISPENSERS
001-3302-4201 947.00
1153 CC PSO INTERVIEW PANEL 4.21.22
001-1203-4201 79.39
1234024 CC ART FRAMING
001-4601-4305 273.99
001-4601-4305 26.02
171 CC WORKSHOP - AHLSTROM
001-3302-4317 79.00
171388 CC RETIREMENT CELEBRATION SUPPLIES
001-2101-4305 15.75
001-2101-4305 1.49
18338901 CC TR#899 LODGING
001-2101-4312 704.35
198 CC TR#909 DINNER 4.1.22
001-1201-4317 50.00
66 05/25/2022
Check Register

CITY OF HERMOSA BEACH
10 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 03353 SBCU VISA (Continued)
2022 SEMINAR CC TR#913 ANNUAL MUNICIPAL SEMINAR
001-1201-4317 750.00
2022 SEMINAR CC TR#912 ANNUAL MUNICIPAL SEMINAR
001-1101-4317 750.00
26NVPT CC TR#910 FLIGHT
001-2101-4317 24.99
28709 CC ENGRAVED PLATE-EMPLOYEE SERVICE AWARD
001-1101-4305 14.00
001-1101-4305 1.44
2936 CC COMM SVS OFFICER PANEL 3.30.22
001-1203-4201 150.38
3301 CC PSO INTERVIEW PANEL 4.26.22
001-1203-4201 92.53
380726 CC TR#909 DINNER 4.2.22
001-1201-4317 50.00
38918 CC TR#909 LODGING
001-1201-4317 714.04
394343449880 CC CAKE FOR PSO JOHNSON RETIREMENT
001-2101-4305 19.99

4.11.22 FASTRAK ACCOUNT REPLENISHMENT
001-2101-4305 40.00
4354679-15666650 CC SIT-STAND DESKS
001-1203-4305 837.60
4707079-6532227 CC MONITOR STANDS FOR FINANCE
715-1206-4305 104.97
715-1206-4305 9.96
5437900 CC GAS & WASH FOR PD VEHICLE
715-2101-4311 68.34
5443212 CC GAS FOR PD VEHICLE
715-2101-4311 61.04
547018 CC THEATRE LOBBY FRIDGE
001-4601-4201 2,037.39
5665245-0284202B CC AMAZON - OFFICE SUPPLIES
001-4202-4305 92.49
001-4202-4305 8.78
5790066-0242633 CC SIT-STAND DESKS
001-1203-4305 249.98
001-1203-4305 23.74
67 05/25/2022
Check Register

CITY OF HERMOSA BEACH
11 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 03353 SBCU VISA (Continued)
6059484-6025039 CC MISC P.D. SUPPLIES
001-2101-4305 48.59
001-2101-4305 4.62
6315579-7425016 CC COFFEE/OFFICE SUPPLIES
001-4202-4305 25.40
6489016 CC BARRICADE RENTAL
001-3104-4309 7.28
6763128-9536219 CC PURCHASE OF HEADPHONES
001-4202-4305 86.92
001-4202-4305 8.26
69486 CC REPLACEMENTS FOR EXPIRING AED SUPPLIES
001-1201-4201 153.00
001-1201-4201 14.53
724522 CC MET LAWNDALE MAYOR RE:RACIAL PROFILING
001-2101-4305 9.00
793611 CC STAFF LUNCH 4.20.22
001-4202-4305 94.66
832505 CC TR#899 FUEL CHARGE
001-2101-4312 56.12
84071980 CC TR#892 LODGING APRIL 22
001-2101-4317 209.22
8B2A7ECB-002 CC SOCIAL MEDIA MGMT SUBSRIPTION
001-1201-4201 35.00
9348862 CC SPECIAL NEEDS STICKERS
001-3302-4201 513.37
001-3302-4201 48.77
96360437 CC TR#906 LODGING BALANCE
001-2101-4313 0.03
9646022-7871448 CC CELL PHONE CHARGING CABLE
001-4202-4305 39.96
001-4202-4305 3.80
CM21695 CC TR#874 ADDED FEE REFUND
001-2101-4317 -99.00
IC30411-0322 CC CONFERENCE LINE/MAR22
001-1201-4304 4.98
INV136966731 CC VIDEO CONF/CLOUD OVERAGE FEES/FEB22
157-2702-4201 145.59
INV142157581 CC VIDEO CONF/CLOUD OVERAGE FEES/MAR22
68 05/25/2022
Check Register

CITY OF HERMOSA BEACH
12 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99836 5/25/2022 03353 SBCU VISA (Continued)
157-2702-4201 207.31
KCZGPC7QB2 CC MEDIA BUMP-HBPD STORY 3.8-3.10.22
001-2101-4305 15.00
L2108556520 CC REPLACEMENT LAVALIER MICROPHONES
001-4601-4308 359.98
001-4601-4308 34.20
ML0F0XB9ZZ CC SENIOR CENTER MOVIES/MUSIC/APR22
001-4601-4328 9.99
MSM3YNFGJX CC SCHEID/ADD'L CELL STORAGE/APR22
001-2101-4305 0.99
MXFZXFBFG CC LEBARON/ADD'L PHONE STORAGE/APR22
001-2101-4305 2.99
PO 37541 CC LUNCH MEETING WITH SCE REP
001-1201-4305 19.79
PO 37637 CC GIFT CARDS FOR EXTERNAL RATERS
001-1203-4201 160.00

REFUND-CC ANNUAL SUBSCRIPTION REFUND
001-1203-4201 -1,439.88
RU311890 CC EOC SATELLITE PHONE/APR22
001-1201-4304 57.67
THNNLMDLFVLK86007 CC MEDAL OF VALOR LUNCHEON
001-2101-4317 561.00
03353 Total : 10,549.76
99837 5/25/2022 18335 SHAW HR CONSULTING INC 16581 HR CONSULTING SVS/SEPT20-MAR21 001-1203-4201 1,085.00
18335 Total : 1,085.00
99838 5/25/2022 07158 SIEMENS INDUSTRY INC 56202239500 TRAFFIC SIGNAL MAINT/MAR22 001-3104-4201 1,484.52
07158 Total : 1,484.52
99839 5/25/2022 13776 SMITH, STARLA PO 37640 MILEAGE REIMBURSEMENT-TR892 001-2101-4317 225.29
13776 Total : 225.29
99840 5/25/2022 00170 SOCAL GAS 011 004 5767 8 YARD BLDGS/NATURAL GAS/APR22 001-4204-4303 28.63
69 05/25/2022
Check Register

CITY OF HERMOSA BEACH
13 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99840 5/25/2022 00170 SOCAL GAS (Continued) Total : 28.63 99841 5/25/2022 10532 SOUTH BAY FORD 378118 MAT REQ768662 VEHICLE REPAIR/MAINT PARTS 715-2101-4311 111.39
378586 MAT REQ768666 VEHICLE REPAIR/MAINT PARTS
715-2101-4311 30.25
379209 MAT REQ768669 VEHICLE REPAIR/MAINT PARTS
715-2101-4311 191.11
380186 MAT REQ768682 VEHICLE REPAIR/MAINT PARTS
715-2101-4311 20.57
381900 MAT REQ768718 VEHICLE REPAIR/MAINT PARTS
715-2101-4311 348.68
382039 MAT REQ768702 VEHICLE REPAIR/MAINT PARTS
715-2101-4311 112.58
CM381900 MAT REQ 768719 PARTS CREDIT
715-2101-4311 -317.52
CM381900A MAT REQ 768720 PARTS CREDIT
715-2101-4311 -31.16
10532 Total : 465.90
99842 5/25/2022 00159 SOUTHERN CALIFORNIA EDISON CO 700338055956 ELECTRICITY/4.7.22-5.8.22 001-4204-4303 1,964.11
700371314327 ELECTRICITY/4.8.22-5.9.22
105-2601-4303 136.54
00159 Total : 2,100.65
99843 5/25/2022 00146 SPARKLETTS 4472788 051922 MAT REQ 987431 WATER DELIVERY/MAY22 001-4601-4305 163.73
00146 Total : 163.73
99844 5/25/2022 18821 SPCALA 2022-0430 ANIMAL SHELTER SVS/DISPOSAL/APR 22 001-3302-4201 875.00
18821 Total : 875.00
99845 5/25/2022 21538 SPECIALIZED ELEVATOR SERVICES 42519 PRKNG STRUCT ELEVATOR MAINT/MAY22 001-3304-4201 183.40
42520 CITY HALL ELEVATOR MAINT/MAY22
001-4204-4201 183.40
21538 Total : 366.80
70 05/25/2022
Check Register

CITY OF HERMOSA BEACH
14 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99846 5/25/2022 10098 SPRINT 551834312-245 COMM RES/CELL PHONES/APR22 001-4601-4304 53.11
10098 Total : 53.11
99847 5/25/2022 14457 THE LEW EDWARDS GROUP 22-01 BALLOT PREP/COMMUNICATION SVS/MAR22 001-1201-4201 5,950.00
22-02 BALLOT PREP/COMMUNICATION SVS/APR22
001-1201-4201 5,950.00
14457 Total : 11,900.00
99848 5/25/2022 00123 TRIANGLE HARDWARE May 2022 MAINTENANCE SUPPLIES/MAY 22 001-3104-4309 3,152.24
001-6101-4309 796.82
105-2601-4309 2,044.38
001-2022 -104.49
001-2021 104.49
00123 Total : 5,993.44
99849 5/25/2022 20670 TURBODATA SYSTEMS, INC. 37339 TICKET WRITER WIRELESS FEES/APR-JUL22 001-3302-4201 3,750.00
20670 Total : 3,750.00
99850 5/25/2022 13960 TURKOLU, MELINDA Parcel 4169 037 015 SEWER & STREET LIGHT TAX REBATE FY21 105-3105 24.61
001-6871 126.60
13960 Total : 151.21
99851 5/25/2022 08330 UNITED HEALTHCARE INS. CO Incident 84893 AMBULANCE TRANSPORT FEE REFUND 001-3840 204.02
08330 Total : 204.02
99852 5/25/2022 18753 UNITED SITE SERVICES 114-12955612 WEEKEND RESTROOM SVS AT CLARK FIELD 301-8669-4201 180.18
114-12958528 WEEKEND RESTROOM SVS TRIP CHARGE
301-8669-4201 150.00
114-13034527 TOILET RENTAL/SOUTH PARK/APR22
301-8669-4201 1,878.46
114-13034531 TOILET RENTAL/CLARK FIELD/APR22
301-8669-4201 2,240.64
114-13063070 ADDED SINK @SOUTH PARK/APR22
71 05/25/2022
Check Register

CITY OF HERMOSA BEACH
15 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99852 5/25/2022 18753 UNITED SITE SERVICES (Continued)
301-8669-4201 435.51
18753 Total : 4,884.79
99853 5/25/2022 15071 VAN DILLEN, BEVERLY Parcel 4184 0008 028 STREET LIGHT TAX REBATE FY21 105-3105 24.61
15071 Total : 24.61
99854 5/25/2022 22494 VERITAS TESTING LLC 1663 COVID-19 TESTING 11/26-12/31/21 157-2702-4201 5,250.00
1664 COVID-19 TESTING 1/3-2/28/22
157-2702-4201 6,300.00
1665 COVID-19 TESTING 3/11-3/18/22
157-2702-4201 450.00
22494 Total : 12,000.00
99855 5/25/2022 18666 VERIZON BUSINESS SERVICES 72177879 VOIP PHONES/CITY HALL & PD/MAR22 001-1101-4304 31.27
001-1121-4304 45.59
001-1132-4304 13.25
001-1141-4304 26.52
001-1201-4304 109.60
001-1202-4304 63.61
001-1203-4304 53.02
001-1204-4304 79.71
001-1208-4304 6.03
001-2101-4304 382.83
001-4101-4304 79.67
001-4201-4304 98.61
001-4202-4304 132.78
001-4204-4321 13.27
160-3102-4201 13.27
715-1206-4304 13.30
72220759 VOIP PHONES/CITY HALL & PD/APR22
001-1101-4304 31.30
001-1121-4304 45.84
001-1132-4304 13.27
001-1141-4304 26.57
001-1201-4304 109.49
72 05/25/2022
Check Register

CITY OF HERMOSA BEACH
16 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99855 5/25/2022 18666 VERIZON BUSINESS SERVICES (Continued) 001-1202-4304 63.72
001-1203-4304 53.16
001-1204-4304 79.62
001-1208-4304 5.98
001-2101-4304 377.18
001-4101-4304 79.69
001-4201-4304 97.71
001-4202-4304 132.58
001-4204-4321 13.28
160-3102-4201 13.27
715-1206-4304 13.26
18666 Total : 2,318.25
99856 5/25/2022 16909 WILLOW, ELAINE M Parcel 4188 029 047 STREET LIGHT & SEWER TAX REBATE/FY21 001-6871 126.60
105-3105 24.61
16909 Total : 151.21
99857 5/25/2022 13359 WITTMAN ENTERPRISES LLC 2203062 AMBULANCE TRANSPORT/MAR22 001-1202-4201 3,963.70
13359 Total : 3,963.70
99858 5/25/2022 01206 ZUMAR INDUSTRIES INC 96717 MAT REQ 638938/STREET SIGN MAINTENANCE 001-3104-4309 574.65
01206 Total : 574.65
415619 3/8/2022 01397 EMPLOYMENT DEVELOPMENT DEPT L0871083280 LATE PAYROLL TAX PAYMENT PENALTY 001-1202-4251 7,617.00
01397 Total : 7,617.00
415733 3/8/2022 01397 EMPLOYMENT DEVELOPMENT DEPT L1269607696 UNEMPLOYEMENT CLAIMS/10.1.21-12.31.21 705-1215-4186 4,414.35
01397 Total : 4,414.35
827784 5/23/2022 01397 EMPLOYMENT DEVELOPMENT DEPT L620624656 UNEMPLOYMENT CLAIMS/1.1.22-3.31.22 705-1215-4186 14,210.76
01397 Total : 14,210.76
92 Vouchers for bank code : boa Bank total : 437,612.51 73 05/25/2022
Check Register

CITY OF HERMOSA BEACH
17 5:35:54PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
92 Vouchers in this report Total vouchers : 437,612.51
"I hereby certify that the demands or claims covered by the checks listed on pages 1 to 17 inclusive, of the check
register for 5/25/2022 are accurate funds are available for payment, and are in conformance to the budget."
By
Finance Director
Date 5/25/22
74 06/01/2022
Check Register

CITY OF HERMOSA BEACH
1 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99859 6/1/2022 20197 AMERICAN ARBOR CARE 64358 ARBORIST SVS/CONSULT MAY22 001-6101-4201 250.00
20197 Total : 250.00
99860 6/1/2022 17965 AMGRAPH GROUP, INC 13594011 INSTALL/REMOVE FLAGS FOR MEMORIAL DAY 001-1101-4319 2,660.00
17965 Total : 2,660.00
99861 6/1/2022 00321 AT&T 000018203579 PD COMPUTER CIRCUITS/MAY22 001-2101-4304 140.15
00321 Total : 140.15
99862 6/1/2022 08763 BOB BARKER COMPANY, INC. INV1767283 JAIL SUPPLIES-INMATE APPAREL 001-2101-4306 254.73
001-2101-4306 24.21
08763 Total : 278.94
99863 6/1/2022 10838 CANON BUSINESS SOLUTIONS, INC 122283036 ADMIN COPIER INSPECTION/REPAIR 715-1208-4201 393.75
10838 Total : 393.75
99864 6/1/2022 09632 CDWG W933841 ADDED MICROSOFT LICENSES 715-1206-4201 3,318.65
09632 Total : 3,318.65
99865 6/1/2022 16829 DPN SYSTEMS 22-014-A CPR/AED TRAINING FOR 10 STAFF MEMBERS 001-1201-4317 550.00
22-018-A CPR/AED TRAINING FOR 1 STAFF MEMBER
001-1201-4317 55.00
16829 Total : 605.00
99866 6/1/2022 22113 ELITE PRIVATE INVESTIGATION 202209 INVESTIGATION SVS 3.20.22-5.26.22 001-2101-4201 3,773.52
22113 Total : 3,773.52
99867 6/1/2022 14455 FAIRBANK, MASLIN, MAULLIN, 240601 COMMUNITY SURVEY 001-1201-4201 27,000.00
14455 Total : 27,000.00
Attachment 475
06/01/2022
Check Register

CITY OF HERMOSA BEACH
2 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99868 6/1/2022 16476 FASTAIRE HAND DRYERS, INC HD3674 HAND DRYER MOTOR 001-4204-4309 124.75
16476 Total : 124.75
99869 6/1/2022 08422 FIRE INFORMATION SUPPORT SERV 1256 FIRE DEPT PUBLIC RECORDS REQUEST 001-1201-4201 1,050.00
08422 Total : 1,050.00
99870 6/1/2022 10836 GRAINGER 9324641167 MAT REQ 768726/MAINTENANCE SUPPLIES 715-2101-4311 44.91
10836 Total : 44.91
99871 6/1/2022 15141 HONDA MD INC, STEPHAN T 00132044 DETAINEE BLOOD DRAW/OCT21 001-2101-4201 63.60
15141 Total : 63.60
99872 6/1/2022 21849 INTERWEST CONSULTING GROUP INC 76518 PARKING STUDY/DOWNTOWN AREA/JAN22 SVS 001-1214-4322 4,535.00
76725 PARKING STUDY/DOWNTOWN AREA/FEB22 SVS
001-1214-4322 8,725.00
21849 Total : 13,260.00
99873 6/1/2022 09995 JAVA MAN 05.05.22 EMPLOYEE APPRECIATION BREAKFAST 001-1203-4201 521.00
09995 Total : 521.00
99874 6/1/2022 00151 LA CO SHERIFFS DEPARTMENT 222840BL MAT REQ 583946/INMATE MEALS/APR22 001-2101-4306 195.55
00151 Total : 195.55
99875 6/1/2022 20508 LANGE, JOHN K Parcel 4183 021 009 SEWER & STREET LIGHT TAX REBATE/FY21 001-6871 126.60
105-3105 24.61
20508 Total : 151.21
99876 6/1/2022 22616 LUXA, BRUNHILDE Parcel 4183 021 015 STREET LIGHT TAX REBATE/FY21 105-3105 24.61
22616 Total : 24.61
99877 6/1/2022 20898 MCCORMICK AMBULANCE 267095 AMBULANCE TRANSPORT SVS/APR22 76 06/01/2022
Check Register

CITY OF HERMOSA BEACH
3 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99877 6/1/2022 20898 MCCORMICK AMBULANCE (Continued)
001-1201-4201 24,080.00
20898 Total : 24,080.00
99878 6/1/2022 21660 MILLER PLANNING ASSOCIATES LLC 20007-0422-17 ZONING/SUBDIV ORDINANCE UPDATES/APR22 001-4105-4201 18,482.50
21660 Total : 18,482.50
99879 6/1/2022 11454 MOST DEPENDABLE FOUNTAINS INV67177 BEACH SHOWER PARTS 001-6101-4309 114.00
001-6101-4309 9.52
11454 Total : 123.52
99880 6/1/2022 22593 MTGL, INC. 0067329 GEOTECHNICAL SVS/683 5TH ST SEWER PLAN 001-4202-4201 750.00
22593 Total : 750.00
99881 6/1/2022 11539 NETRIX LLC DI-000363 DATTO SERVER CLOUD LIC/MAY22 715-1206-4201 1,957.55
11539 Total : 1,957.55
99882 6/1/2022 13114 ODP BUSINESS SOLUTIONS, LLC 243065441001 MAT REQ 838522/OFFICE SUPPLIES 001-4201-4305 75.43
243110286001 MAT REQ 838522/OFFICE SUPPLIES
001-4201-4305 24.11
13114 Total : 99.54
99883 6/1/2022 22596 PRESTIGE DRYWALL SYSTEMS, INC 525 DRYWALL AT CITY YARD 715-4204-4201 7,500.00
22596 Total : 7,500.00
99884 6/1/2022 22189 PROJECT 529, INC 1686 ANNUAL SUBSCRIPTION FEE/MAR22-MAR23 001-2101-4315 500.00
22189 Total : 500.00
99885 6/1/2022 17676 PRUDENTIAL OVERALL SUPPLY Stmt Dated 5.21.22 YARD UNIFORMS,TOWELS, & MATS/MAY22 001-2101-4309 66.16
001-3104-4309 48.36
001-3302-4309 59.56
001-4202-4314 437.61
77 06/01/2022
Check Register

CITY OF HERMOSA BEACH
4 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99885 6/1/2022 17676 PRUDENTIAL OVERALL SUPPLY (Continued) 001-4204-4309 116.72
715-4206-4309 39.76
17676 Total : 768.17
99886 6/1/2022 15582 ROADLINE PRODUCTS INC 17544 BLUE TRAFFIC PAINT 001-3104-4309 380.00
001-3104-4309 34.20
17545 GREEN TRAFFIC PAINT
001-3104-4309 830.00
001-3104-4309 76.95
15582 Total : 1,321.15
99887 6/1/2022 20282 SMARTCOVER SYSTEMS 22061 BATTERY FOR SMARTCOVER@35TH ST 160-3102-4309 548.63
20282 Total : 548.63
99888 6/1/2022 18178 SOUTHERN CALIFORNIA AUDIO 10796 MAT REQ 768728/WINDOW TINTING 715-2101-4311 344.58
18178 Total : 344.58
99889 6/1/2022 20236 SPECTRUM BUSINESS 8448300300402150 1301 HERMOSA/540 PIER CONNECTION/JUN22 001-2101-4304 802.07
20236 Total : 802.07
99890 6/1/2022 11818 TARANGO, CHERYL Parcel 4187 019 027 SEWER & STREET LIGHT TAX REBATE FY21 001-6871 126.60
105-3105 24.61
11818 Total : 151.21
99891 6/1/2022 18666 VERIZON BUSINESS SERVICES 72145175 VOIP PHONES/EOC/FEB22 001-1202-4304 2.51
72177689 VOIP PHONES/EOC/MAR22
001-1201-4304 2.44
72220744 VOIP PHONES/BARD/APR22
001-3302-4304 50.41
72220751 VOIP PHONES/BASE 3/AP22
001-3302-4304 79.63
72221362 VOIP PHONES/COMM RES/APR22
001-4601-4304 103.52
78 06/01/2022
Check Register

CITY OF HERMOSA BEACH
5 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
99891 6/1/2022 18666 VERIZON BUSINESS SERVICES (Continued) 72221369 VOIP PHONES/EOC/APR22
001-1201-4304 42.40
18666 Total : 280.91
99892 6/1/2022 20204 VILLANUEVA, BRANDY PO 37575 REIMBURSEMENT FOR AIR FILTERS 157-2702-4305 479.96
157-2702-4305 45.60
20204 Total : 525.56
99893 6/1/2022 01206 ZUMAR INDUSTRIES INC 96799 MAT REQ 583766/STREET SIGN MAINTENANCE 001-3104-4309 71.07
01206 Total : 71.07
130932 5/25/2022 14691 ADMINSURE AS AGENT FOR THE Wire Date 5.25.22A WORKERS COMP CLAIMS 3.28-4.1.22 705-1217-4324 30,131.57
Wire Date 5.25.22B WORKERS COMP CLAIMS 4.4-4.8.22
705-1217-4324 6,387.13
Wire Date 5.25.22C WORKERS COMP CLAIMS 4.11-4.15-22
705-1217-4324 3,142.83
Wire Date 5.25.22D WORKERS COMP CLAIMS 4.18-4.21.22
705-1217-4324 5,738.29
Wire Date 5.25.22E WORKERS COMP CLAIMS 4.25-4.29.22
705-1217-4324 32,725.00
WireDate3.29.22-DupE DUPLICATE PYMT-CLAIMS 2.25-3.4.22
705-1217-4324 -27,799.08
WireDate3.29.22-DupF DUPLICATE PYMT/CLAIMS 3.7-3.11.22
705-1217-4324 -7,665.07
WireDate3.29.22-DupG DUPLICATE PYMT-CLAIMS 3.21-3.25.22 705-1217-4324 -25,804.97
14691 Total : 16,855.70
410932 5/25/2022 14691 ADMINSURE AS AGENT FOR THE Wire Date 5.25.22F WORKERS COMP CLAIMS 5.9-5.13.22 705-1217-4324 7,899.54
Wire Date 5.25.22G WORKERS COMP CLAIMS 5.2-5.6.22
705-1217-4324 5,302.42
14691 Total : 13,201.96
37 Vouchers for bank code : boa Bank total : 142,219.76 79 06/01/2022
Check Register

CITY OF HERMOSA BEACH
6 5:09:46PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
37 Vouchers in this report Total vouchers : 142,219.76
"I hereby certify that the demands or claims covered by the checks listed on pages 1 to 6 inclusive, of the check
register for 6/1/2022 are accurate funds are available for payment, and are in conformance to the budget."
By
Finance Director
Date 6/1/22
80 City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0377
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022
ADOPTION OF THE 2022-23 APPROPRIATIONS LIMIT
(Finance Director Viki Copeland)
Recommended Action:

Staff recommends City Council adopt a Resolution approving and adopting the annual Appropriations Limit for the Fiscal Year 2022-23.

Executive Summary:

In 1979, the State of California adopted appropriations limits on state and local governments and in 1990 updated the method of limit calculation. Each year, staff presents to City Council a resolution to approve and adopt the City’s annual appropriations limit.

Background:

On November of 1979, Article XIII B of the California State Constitution was adopted by the voters through Proposition 4. This Article established appropriations limits on state and local governments using a formula for appropriation of revenue from tax proceeds.

On June 5, 1990, Proposition 111 modified this method of calculating the limit, beginning with fiscal year 1990-91, to allow the City to choose the most beneficial of two adjustment factors for inflation and population as follows:

Inflation
California Per Capita Personal Income Change
or
Increase in Non-Residential Assessed Valuation Due to New Construction Population
City Population Growth
or
County Population Growth
Proposition 111 also implemented a requirement that the Appropriation Limit be reviewed annually by City of Hermosa Beach Page 1 of 3 Printed on 9/12/2022
powered by Legistar™ 81
Staff Report
REPORT 22-0377
Proposition 111 also implemented a requirement that the Appropriation Limit be reviewed annually by the City’s Independent Auditor.

Analysis:

The 2022-23 limit was calculated, per the League of California Cities Uniform Guidelines, by applying the population and inflation factors to the prior year limit. The County of Los Angeles’ population change of -0.71 percent was used as the population growth factor since the decrease is less than the City’s population change of -1.09 percent. The California Per Capita Personal Income Change of 7.55 percent was used as the inflation factor since the increase in Non-Residential Assessed Valuation Due to New Construction is 0.98 percent. The factor with the largest change is always chosen to give the City maximum discretion with regard to appropriations.

The law requires adoption of the 2022-23 limit by resolution and a recorded vote of the Council to select annual adjustment factors. The choice is set forth in the attached resolution.

The limit calculation will be reviewed by the City’s auditors during the annual financial audit.

General Plan Consistency:

PLAN Hermosa, the City’s long-range planning document, was adopted by the City Council in August 2017, and envisions a future where “Hermosa Beach is the small town others aspire to be; a place where our beach culture, strong sense of community, and commitment to sustainability intersect.” One of the guiding principles to achieve the vision is to make decisions and take actions that help contribute to the City’s economic and fiscal stability.

This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant policies are listed below:

Governance Element
Goal 1. A high degree of transparency and integrity in the decision-making process.

Policy:
· Open meetings. Maintain the community’s trust by holding meetings in which decisions are being made, that are open and available for all community members to attend, participate, or view remotely.

Fiscal Impact:

There is no fiscal impact associated with the recommended action.

Attachments:

1. Resolution Adopting 2022-23 Appropriations Limit

2. 2022-23 Calculation of Appropriation Limit
City of Hermosa Beach Page 2 of 3 Printed on 9/12/2022
powered by Legistar™ 82
Staff Report
REPORT 22-0377
Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 3 of 3 Printed on 9/12/2022
powered by Legistar™ 83

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
RESOLUTION NO. 22-xxxx

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, APPROVING AND ADOPTING THE ANNUAL
APPROPRIATIONS LIMIT FOR THE FISCAL YEAR 2022–2023
WHEREAS, the voters of California, on November 6, 1979, added Article XIII B to the State Constitution, placing various limitations on appropriations of state and local governments; and WHEREAS, Article XIII B provides that the appropriations limit for the fiscal year 2022– 2023 is calculated by adjusting the base year appropriations of fiscal year 1978-79 and subsequent years for changes in the cost of living and population; and WHEREAS, Proposition 111 (Section 1.5 of Article XIII B), enacted by the voters on June 5, 1990, modified the method of calculating the limit, beginning with fiscal year 1990-91; and WHEREAS, the City of Hermosa Beach has complied with all of the provisions of Article XIII B in determining the appropriations limit for fiscal year 2022–2023;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, DOES RESOLVE AS FOLLOWS:

SECTION 1. That the City of Hermosa Beach chooses to use the California Per Capita Personal Income Change as the inflation adjustment factor for fiscal year 2022–2023.

SECTION 2. The City of Hermosa Beach chooses to use the Change in Population for the County of Los Angeles as the growth adjustment factor for fiscal year 2022–2023.

SECTION 3. The City of Hermosa Beach uses the Uniform Guidelines published by the League of California Cities in March 1991 to determine the limit and appropriations subject to the limit.

Attachment 1
84

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
SECTION 4. Documentation for calculation of the limit is on file in the Finance Department and will be reviewed by the City’s auditors during the annual financial audit, as required by Proposition 111.

SECTION 5. The appropriations limit for the City of Hermosa Beach for fiscal year 2022– 2023 is $48,774,435.

SECTION 6. This Resolution shall take effect immediately. The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council meeting at which the same is passed and adopted.

PASSED, APPROVED AND ADOPTED this 14th day of June, 2021. ________________________________________________________________________ PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM:
________________________________ _______________________________ City Clerk City Attorney
85 CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT

HISTORY OF LIMITATION
Limitation for 1986-87 Fiscal Year $8,609,437
1987-88
Per Capita Income Change = 3.47%
>1.0544
County of Los Angeles Population Change = 1.91%
Limitation $9,077,790
1988-89
Per Capita Income Change = 4.66%
>1.0655
County of Los Angeles Population Change = 1.81%
Limitation $9,672,386
1989-90
Per Capita Income Change = 5.19%
>1.0638
County of Los Angeles Population Change = 1.14%
Limitation $10,289,484
1990-91
Per Capita Income Change = 4.21%
>1.0562
County of Los Angeles Population Change = 1.36%
Limitation $10,867,753
1991-92
Per Capita Income Change = 4.14%
>1.0594
County of Los Angeles Population Change = 1.73%
Limitation $11,513,297
1992-93
Per Capita Income Change = -0.64%
>1.0084
County of Los Angeles Population Change = 1.49%
Limitation $11,610,009
1993-94
Per Capita Income Change = 2.72%
>1.0371
County of Los Angeles Population Change = 0.96%
Limitation $12,040,740
1994-95
Per Capita Income Change = 0.71%
>1.0147
County of Los Angeles Population Change = 0.75%
Limitation $12,217,739
1995-96
Per Capita Income Change = 4.72%
>1.0507
County of Los Angeles Population Change = 0.33%
Limitation $12,837,178
1996-97
Per Capita Income Change = 4.67%
>1.0517
County of Los Angeles Population Change = 0.48%
Limitation $13,500,860
Attachment 2
86 CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT

HISTORY OF LIMITATION
1997-98
Per Capita Income Change = 4.67%
>1.0597
County of Los Angeles Population Change = 1.24%
Limitation $14,306,861
1998-99
Per Capita Income Change = 4.15%
>1.0604
County of Los Angeles Population Change = 1.81%
Limitation $15,170,995
1999-00
Per Capita Income Change = 4.53%
>1.0639
County of Los Angeles Population Change = 1.78%
Limitation $16,140,422
2000-01
Per Capita Income Change = 4.91%
>1.0675
County of Los Angeles Population Change = 1.75%
Limitation $17,229,900
2001-02
Per Capita Income Change = 7.82%
>1.0961
County of Los Angeles Population Change = 1.66%
Limitation $18,885,693
2002-03
Increase in non-residential assessed valuation due
to new construction = 1.00%
>1.0299
City of Hermosa Beach Population Change = 1.97%
Limitation $19,450,375
2003-04
Per Capita Income Change = 2.31%
>1.0401
County of Los Angeles Population Change = 1.66%
Limitation $20,230,335
2004-05
Per Capita Income Change = 3.28%
>1.0471
County of Los Angeles Population Change = 1.38%
Limitation $21,183,184
2005-06
Per Capita Income Change = 5.26%
>1.0650
County of Los Angeles Population Change = 1.18%
Limitation $22,560,091
2006-07
Per Capita Income Change = 3.96%
>1.0477
County of Los Angeles Population Change = 0.78%
Limitation $23,636,207
87 CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT

HISTORY OF LIMITATION
2007-08
Per Capita Income Change = 4.42%
>1.0515
County of Los Angeles Population Change = 0.72%
Limitation $24,853,472
2008-09
Per Capita Income Change = 4.29%
>1.0519
County of Los Angeles Population Change = 0.86%
Limitation $26,143,367
2009-10
Increase in non-residential assessed valuation due
to new construction = 0.88%
>1.0179
County of Los Angeles Population Change = 0.90%
Limitation $26,611,333
2010-11
Increase in non-residential assessed valuation due
to new construction = 1.01%
>1.019
City of Hermosa Beach Population Change = 0.94%
Limitation $27,116,948
2011-12
Increase in non-residential assessed valuation due
to new construction = 2.75%
>1.0314
County of Los Angeles Population Change = 0.38%
Limitation $27,968,420
2012-13
Increase in non-residential assessed valuation due
to new construction = 9.71%
>1.101268
County of Los Angeles Population Change = 0.38%
Limitation $30,800,726
2013-14
Per Capita Income Change = 5.12%
>1.05845328
County of Los Angeles Population Change = 0.69%
Limitation $32,601,127
2014-15
Increase in non-residential assessed valuation due
to new construction = 1.31%
>1.021002
County of Los Angeles Population Change = 0.78%
Limitation $33,285,816
2015-16
Per Capita Income Change 3.82%
>1.046713
County of Los Angeles Population Change = 0.82%
Limitation $ 34,840,696
2016-17
Per Capita Income Change 5.37%
>1.062656
County of Los Angeles Population Change = 0.85%
Limitation $ 37,023,675
88 CITY OF HERMOSA BEACH
2022-23 CALCULATION OF APPROPRIATION LIMIT

HISTORY OF LIMITATION
2017-18
Per Capita Income Change 3.69%
>1.042810
County of Los Angeles Population Change = 0.57%
Limitation $ 38,608,659
2018-19
Per Capita Income Change 3.67%
>1.041987
County of Los Angeles Population Change = 0.51%
Limitation $ 40,229,720
2019-20
Per Capita Income Change 3.85%
>1.040265
City of Hermosa Beach Population Change = 0.17%
Limitation $ 41,849,570
2020-21
Per Capita Income Change 3.73%
>1.036159
County of Los Angeles Population Change = -0.11%
Limitation $ 43,534,643
2021-22
Per Capita Income Change 5.73%
>1.049159
County of Los Angeles Population Change = 0.77%
Limitation $ 45,674,763
2022-23
Per Capita Income Change 7.55%
>1.067864
County of Los Angeles Population Change = 0.71%
Limitation $ 48,774,435
89 City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0362
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022
2020-21 ANNUAL COMPREHENSIVE FINANCIAL REPORT (ACFR)
(Including Report from Independent Auditor)
(Finance Director Viki Copeland)
Recommended Action:

Staff recommends City Council receive and file the 2020-21 Annual Comprehensive Financial Report (ACFR), which includes the report from Gruber and Lopez, Inc., formerly Gruber and Associates, the City’s independent auditors.

Executive Summary:

For the 2020-21 fiscal year, the City again received an unmodified opinion, which indicates that the auditor believes the financial statements present a fair picture of the financial position of the City. The unmodified opinion is the highest level opinion the City can receive. The opinion asserts that the City is in compliance with all Generally Accepted Accounting Principles (GAAP) and Government Accounting Standards Board (GASB) requirements.

Since comparative information for the General Fund for 2019-20 and 2020-21 is not included in the Annual Report, it is presented in the analysis section. Some of the comments from the Transmittal Letter and Management’s Discussion and Analysis (MD&A), located in the Financial Section of the ACFR, are repeated herein for the purpose of having this staff report stand alone.

Overall, General Fund Revenue increased by 3.9 percent and expenditures decreased by 1.8 percent. Revenue was higher than budget by 5.8 percent; expenditures were under budget by 9.1 percent. The year-end transfer of unspent funds in the General Fund was temporarily put on hold due to the unknown impacts of the COVID-19 pandemic. As part of the Midyear Budget Review on March 8, 2022, staff recommended assigning unspent General Funds from 2020-21 of $5,834,252 for the 2022-23 Budget process, at which time it would be determined if the funds need to remain in the General Fund or should transfer to meet funding goals, in accordance with the City’s financial policies. Ultimately, the 2022-23 Preliminary Budget recommends that unspent funds remaining from Fiscal Year 2020-21 be used for the following:
· $18,362 to increase the assigned Compensated Absences balance to the funding goal of 25 City of Hermosa Beach Page 1 of 12 Printed on 9/12/2022 powered by Legistar™ 90
Staff Report
REPORT 22-0362
percent of the accrued liability for employee vacation, sick, and compensatory time; · $278,031 to increase the Insurance Fund’s net position to the funding goal of $3 million for claims above recorded claims liabilities or catastrophic losses; · $333,645 to increase the Equipment Replacement Fund balance to the funding goal, which is to maintain net position equal to the accumulated amount calculated on the equipment replacement schedules for all equipment based on replacement cost and useful life; · $2,602,107 to the Capital Projects Fund to fund 2022-23 Capital Improvement Projects (CIPs) and future CIP funding needs; and
· The remaining $2,602,107 from FY2020-21 would be reserved for use in the 2023-24 Budget.

Background:

Annually, the City has a financial audit performed by an independent, certified public accounting (CPA) firm. The auditor’s report is located on pages 1-3 in the Financial Section of the Annual Report.

The City entered into an agreement with a new audit firm, Gruber and Associates, now Gruber and Lopez, Inc., on May 28, 2019 after selection through the Request for Proposals (RFP) process. This is the third year of the three-year contract, with options to extend an additional two years.

The increased Finance Department workload due to staffing challenges, labor negotiations, and the continued implementation of an online budgeting system pushed the annual audit and issuance of the financial statements later than normal. An extension on the submission date was received from the Government Finance Officers Association (GFOA) and the report was submitted to qualify for the Certificate of Achievement for Excellence in Financial Reporting. The City received the award for the 2020-21 Annual Report and has received the award since 1990.

The award program requires a high level of compliance with governmental standards, inclusion of information well beyond the general-purpose financial statements and an unmodified audit opinion.

There were several new Governmental Accounting Standards Board (GASB) statements effective for fiscal year 2020-21, but none of them significantly impacted the City’s financial statements.

Historical Note: In 2014-15, the City implemented GASB 68 Accounting and Financial Reporting for Pension and GASB 71, Pension Transition for Contributions Made Subsequent to the Measurement Date- an amendment of GASB Statement No 68 and in 2017-18, the City implemented GASB 75 Accounting and Financial Reporting for Postemployment Benefits Other than Pensions. The main impact to the financial statements is the recording of the net pension and OPEB liabilities in the government-wide financial statements. There is no impact to the individual fund financial statements such as the General Fund. While GASB 68 and 75 implemented changes to the accounting and reporting of net pension and OPEB liabilities, neither impact the way pension and OPEB liabilities are funded. Since the net pension and OPEB liabilities are payable over an extended time horizon, they do not represent a claim on current financial resources.

City of Hermosa Beach Page 2 of 12 Printed on 9/12/2022 powered by Legistar™ 91
Staff Report
REPORT 22-0362
Historical Note: GASB 54 Fund Balance Reporting and Governmental Fund Type Definitions, GASB 54 Fund Balance Reporting and Governmental Fund Type Definitions, implemented in 2012-13, established fund classifications based upon constraints imposed on the use of resources in governmental funds. The primary initial impact of this classification change is that funds previously held separately, the Contingency Fund, Compensated Absences Fund, and the Retirement Stabilization Fund are now shown in the General Fund in the “Committed” or “Assigned” categories on page 25, the Balance Sheet for Governmental Funds. The City’s policy for these funds shows on pages 50-51 in Note 1 of the Annual Report and the detailed amounts show in Note 11 on page 75.

Also, as a helpful reminder in reading the ACFR, the GASB 34 reporting model that was implemented in 2002 dictates the following:
· Requires presentation of financial information in specific formats, namely, the Government Wide Financial Statements, beginning on page 19. These statements are designed to show net assets and equity of the City as a whole and to provide information on the cost of services and show how programs are financed;
· Requires Management’s Discussion and Analysis (MD&A) to present financial highlights and assess performance for the year;
· Requires reporting on “major” funds rather than aggregate fund types; and · Requires accrual accounting (in the Government Wide Statements) for all governmental funds, meaning that long term assets and liabilities (such as capital assets, including infrastructure) are included in addition to short term assets and liabilities. All revenues and all costs of providing services are also reported, not just those received or paid in the fiscal year or soon after year-end.

Analysis:

Since comparative information for the General Fund for 2019-20 and 2020-21 is not included in the ACFR, it is presented in the following pages. Some of the comments from the MD&A and Transmittal letter, as mentioned above, are repeated herein for the purpose of having this staff report stand alone. Additional information and analysis can be found in the Transmittal Letter starting on page v and in the MD&A starting on page 5.

City of Hermosa Beach Page 3 of 12 Printed on 9/12/2022 powered by Legistar™ 92
Staff Report
REPORT 22-0362
General Fund Revenue
General Fund revenue decreased 3.9 percent over 2019-20, as depicted in the chart that follows.

Revenue was higher than budget by 5.8 percent, however revenue is still $1,171,316 below 2018-19 or 2.8 percent.

Revenue Increase % Of
FY 2020-21 (Decrease) Increase %
Amount Over FY 2019-20 (Decrease) Of Total
Property Taxes $20,507,313 $1,387,495 7.26% 51.20%
Sales Tax $3,192,853 $470,385 17.28% 7.97%
Utility Users' Tax * $2,171,538 $77,635 3.71% 5.42%
Transient Occupancy Tax $2,552,964 ($46,846) -1.80% 6.37% Other Taxes $1,801,499 $68,995 3.98% 4.50%
Licenses and Permits $904,362 $174,740 23.95% 2.26%
Fines and Forfeitures $2,129,829 ($30,415) -1.41% 5.32% Use of Money and Property $515,241 ($148,375) -22.36% 1.29% Intergovernmental Revenue $101,955 ($26,725) -20.77% 0.25% Charges for Services $6,052,751 ($86,968) -1.42% 15.11% Miscellaneous $167,815 $82,980 97.81% 0.42%
Interest ($46,868) ($414,939) -112.73% -0.12%
Total $40,051,252 $1,507,962 3.91% 100.00% 99.99%
* $700,000 in UUT revenue was removed from the General Fund and shown in the Storm Water Fund as revenue rather than a transfer for financial statement purposes only.

REVENUE SOURCE
City of Hermosa Beach Page 4 of 12 Printed on 9/12/2022 powered by Legistar™ 93
Staff Report
REPORT 22-0362
Taxes
Revenue from taxes generates 75 percent of General Fund revenue. The graph below tracks select tax revenue sources over the past 10 years.

Property Tax
Total property tax revenue increased 7.3 percent. The graph above shows secured tax, which increased 7 percent and unsecured tax, which increased 2 percent. Hermosa Beach’s assessed valuation for secured and unsecured property increased 5.9 percent overall. The 4.4 percent growth was the 18th highest of 88 cities in Los Angeles County. Median home prices in Hermosa Beach for June 2021 were $1,995,000 as compared to Los Angeles County’s median price of $790,000. The average median home price for Hermosa Beach for fiscal year 2020-21 was $1,909,868 compared to $1,802,698 for the prior year.

Sales Tax
Sales tax revenue increased 17.3 percent from 2019-20 primarily due to increases in the Other Retail Stores and County/State Pool. The impact of COVID-19 is reflected in Eating and Drinking Places, Manufacturing and Wholesale, Business and Service Repairs, and Non-Store/Part Time Retailers.

City of Hermosa Beach Page 5 of 12 Printed on 9/12/2022 powered by Legistar™ 94
Staff Report
REPORT 22-0362
Sales Tax by Class
2020-21 % Change
Previous Year
Retail Group
Eating/Drinking Places $779,202 ($70,640) (8%) 26%
Other Retail Stores $281,526 $64,429 30% 9%
Building Materials $269,034 $11,497 4% 9%
Food Stores $260,853 $5,522 2% 9%
Auto Dealers & Supplies $152,775 $25,478 20% 5%
Apparel Stores $97,689 $15,242 18% #
Service Stations # # (19%) 3%
Furniture/Appliance $84,173 $25,642 44% 3%
Drug Stores # # (6%) #
All Other Retail $65,647 $2,968 5% 2%
Total Retail Group # # 3% 71%
Total Manufacturing $138,632 ($4,674) (3%) 5%
& Wholesale
Total Business, Service, $114,927 ($14,706) (11%) 3%
Repair
Total Non-Store/Part Time $1,101 ($6,772) (86%) 1%
Retailers/Adjustments
Total County/State Pool $637,604 $163,371 34% 20%
* Service station and drugstore amounts are not listed because there are too few in the category.

RANK / BUSINESS CLASS INC/(DEC) % OF
TOTAL
Sales Tax by Geographic Area
Revenue % OF Revenue % OF
LOCATION 2019-20 Total % Change 2020-21 Total
PCH 982,752 49% 9% 1,068,885 52%
Downtown 673,331 33% -12% 592,844 29%
Pier/Valley/Monterey 267,661 13% 4% 279,149 13%
Aviation 92,858 5% 26% 116,697 6%
City of Hermosa Beach Page 6 of 12 Printed on 9/12/2022 powered by Legistar™ 95
Staff Report
REPORT 22-0362
Transient Occupancy Tax (TOT)
Transient occupancy tax decreased 1.2 percent over 2019-20. In November 2019, residents voted to increase the TOT rate from 12 percent to 14 percent, effective January 1, 2020, however due to the pandemic, TOT revenue declined despite the increase in tax rate. Hotel occupancy decreased 18.7 percent over 2019-20 due to COVID-19 closures and stay at home orders. Average occupancy was

44.6 percent in 2020-21; occupancy was 63.4 percent in 2019-20.

Utility User Tax (UUT)
The City transfers $700,000 in Utility User Tax revenue annually to the Storm Drain Fund for operations and maintenance. Consistent with prior year, the $700,000 transfer from the General Fund was recorded as UUT revenue instead of a transfer in the Storm Drain Fund for financial statement reporting purposes. UUT was up overall by $77,635 or 3.7 percent in 2020-21.

Licenses and Permits
The License and Permit category increased by 24 percent primarily due to an increase in building permits.

Fines and Forfeitures
Fines and Forfeitures decreased by 1.4 percent in 2020-21. Staff vacancies and duties other than parking contributed to the decrease.

Use of Money and Property
Use of Money and Property decreased by 22.4 percent in 2020-21, primarily due to decline in rental income, including the Community Center and Theater rentals.

City of Hermosa Beach Page 7 of 12 Printed on 9/12/2022 powered by Legistar™ 96
Staff Report
REPORT 22-0362
Service Charges
Service Charges show a decrease of 1.4 percent. Revenue was down due to encroachments and ambulance transports. On March 24, 2020, the City Council approved the temporary suspension of fees for restaurant encroachments and the fees remained suspended for the remainder of the fiscal year. The encroachment fees continued to be suspended for 2020-21. Recreation related service charges increased over 2019-20 as programing resumed.

Interest
Interest decreased by 112.7 percent due to the decline in interest rates and the recording of an unrealized loss on investments of $164,636 in 2020-21. An unrealized gain of $150,299 was previously recorded in 2019-20. Unrealized losses and gains are on paper only since the City holds investments to maturity.

General Fund Expenditures
Expenditures Increase % Of
2020-21 (Decrease) Increase %
Amount Over 19-20 (Decrease) Of Total
Legislative/Legal $1,474,436 $174,418 13.42% 4.10%
General Government $4,166,334 ($387,900) -8.52% 11.58%
Public Safety $21,612,013 $152,450 0.71% 60.09%
Community Development $2,062,104 $22,424 1.10% 5.73%
Culture/Recreation $1,326,493 ($194,536) -12.79% 3.69%
Public Works $5,277,781 ($64,471) -1.21% 14.67%
Capital Outlay $46,545 ($364,659) -88.68% 0.13%
Total $35,965,706 ($662,274) -1.81% 100.00%

GENERAL FUND
Expenditures were 9.1 percent under budget and show a decrease of 1.8 percent from the prior year due to the following:
· The Legislative and Legal increase of 13.4 percent is primarily due to the May 2021 special election to fill a vacancy on the City Council;
· The General Government decrease of 8.5 percent is primarily due to staffing vacancies and one-time costs in 2019-20 including increased contract services costs related to a consultant for the TOT ballot measure, temporary staffing in the Finance Department due to staff out on leave, and North School Traffic Plan costs. Additionally, Public Information Officer (PIO) costs were shifted at the end of 2019-20 and into 2020-21 from the City’s Manager’s Department in City of Hermosa Beach Page 8 of 12 Printed on 9/12/2022 powered by Legistar™ 97
Staff Report
REPORT 22-0362
were shifted at the end of 2019-20 and into 2020-21 from the City’s Manager’s Department in the General Fund to the Federal Emergency Management Agency (FEMA) Fund for expenditures related to the City’s COVID-19 emergency response; · The Public Safety increase of 0.7 percent is due to increased retirement costs for the legacy fire department PERS plans; and
· Capital Outlay decreased by 88.68 percent due to the payment to the County for the Fire Facility being paid from the Capital Improvement Fund in 2020-21 instead of the General Fund. Additionally, fewer CIPs were funded from the General Fund in 2020-21.

General Fund Unspent Funds
The policy of transferring unspent funds in the General Fund to the Insurance Fund, Equipment Replacement Fund (ERF) and Compensated Absences Fund was implemented in 1995-96 to build equity and provide funds for amounts owed to employees for accumulated leave. The policy was changed in 1998-99 to discontinue allocating funds to the Compensated Absences Fund (since the target amount was reached), to create a Capital Improvement Fund for street and other capital improvements and to include a goal for Contingency funds in the policy. The Contingency Policy was changed from 15 percent of appropriations for operating funds to 16 percent in 2013-14 in keeping with best practices.

The City Council amends the policy, as necessary, when goals or targets are met and depending on where funds are needed. For several years, funds available at year-end were transferred to the Insurance Fund to cover estimated insurance claims liabilities and the oil settlement agreement.

From 2013-14 to 2015-16, funds available at year-end were transferred to the Capital Improvement Fund. The 2016-17 and 2017-18 transfers were to the Insurance Fund to help cover the 2016-17 oil settlement agreement and 2017-18 liability claims settlements. In 2018-19, the Insurance Fund was at the funding goal of $3,000,000 so the year-end transfer was made to the Capital Improvement Fund and half was assigned for the newly created Capital Facilities Reserve.

Due to the sudden uncertainty from the COVID-19 pandemic, 2019-20 unspent funds were temporarily held in the General Fund. The 2021-22 Adopted Budget transferred unspent funds from prior years to the Capital Improvement Fund to provide funding for future Capital Improvement Projects, increase the Capital Facilities Reserve, and establish a reserve for the remaining Fire Facility payments to the County for the newly renovated fire station.

As previously noted, the 2022-23 Preliminary Budget on tonight’s agenda recommends that unspent funds remaining from Fiscal Year 2020-21 be used for the following:
· $18,362 to increase the assigned Compensated Absences balance to the funding goal of 25 City of Hermosa Beach Page 9 of 12 Printed on 9/12/2022 powered by Legistar™ 98
Staff Report
REPORT 22-0362
percent of the accrued liability for employee vacation, sick, and compensatory time; · $278,031 to increase the Insurance Fund’s net position to the funding goal of $3 million for claims above recorded claims liabilities or catastrophic losses; · $333,645 to increase the Equipment Replacement Fund balance to the funding goal, which is to maintain net position equal to the accumulated amount calculated on the equipment replacement schedules for all equipment based on replacement cost and useful life; · $2,602,107 to the Capital Projects Fund to fund 2022-23 Capital Improvement Projects (CIPs) and future CIP funding needs; and
· The remaining $2,602,107 from FY2020-21 would be reserved for use in the 2023-24 Budget.

Insurance Fund
The net position in the Insurance Fund is under the funding goal of $3,000,000 at year end. The balance at June 30, 2020 was under the funding of $3 million due to transfers to the General Fund to assist in balancing the budget at year-end. There was an increase in attorney fees in addition to an increase in claims/settlement expenses of $953,264 in the litigation account. Additionally, claims expenses and adjustments for actuarially determined claims payable were higher than expected, resulting in the ending balance of $1,103,110.

Other primary expenses in the Insurance Fund are related to workers’ compensation claims, general liability claims and litigation. Claims payments for workers’ compensation were higher by $91,523 and liability cases were higher by $139,940 in 2019-20. Year-end liabilities are established annually through actuarial studies performed by the Independent Cities Risk Management Authority’s independent actuary. The total overall claims expense is higher by $397,712, largely due to an increase in year-end liability recorded in the Worker’s Compensation Division.

City of Hermosa Beach Page 10 of 12 Printed on 9/12/2022 powered by Legistar™ 99
Staff Report
REPORT 22-0362
Changes to Claims Expense
DEPARTMENT/DIVISION 2019-20 2020-21
Increase
(Decrease)
Workers Compensation Division
Change to:

Claims Paid $757,408 $848,931 $91,523
Year-end Liability (375,344) 325,905 701,249
$382,064 $1,174,836 $792,772
Liability Division
Change to:

Claims Paid $245,781 $385,721 $139,940
Year-end Liability 681,269 146,269 (535,000)
$927,050 $531,990 ($395,060)
Total Claims Expense $1,309,114 $1,706,826 $397,712
General Plan Consistency:

PLAN Hermosa, the City’s long-range planning document, was adopted by the City Council in August 2017, and envisions a future where “Hermosa Beach is the small town others aspire to be; a place where our beach culture, strong sense of community, and commitment to sustainability intersect.” One of the guiding principles to achieve the vision is to make decisions and take actions that help contribute to the City’s economic and fiscal stability.

A focus of the Governance chapter in the General Plan is to ensure that decision-making and leadership are conducted in an ethical, transparent, and innovative manner that reflects community values. Goal 1 of the Governance chapter speaks to maintaining a high degree of transparency and integrity in the decision-making process.

Other relevant General Plan policies are listed below:

Infrastructure Element
Goal 1. Infrastructure systems are functional, safe, and well maintained.

Policies:
· 1.2 Priority investments. Use City Council established priorities and the Capital Improvement City of Hermosa Beach Page 11 of 12 Printed on 9/12/2022 powered by Legistar™100
Staff Report
REPORT 22-0362
· 1.2 Priority investments. Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan. · 1.9 Preventative street maintenance projects. Include street slurry projects and other preventive projects in the CIP each year, with sufficient funding.

Public Safety Element
Goal 5. High quality police and fire protection services provided to residents and visitors.

Policy:
· 5.2 High level of response. Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community.

Fiscal Impact:

The 2020-21 Annual Report provides a financial overview for the previous fiscal year. Audited fund balances were used in the Fund Summary Reports for the 2021-22 Midyear Budget Review and 2022-23 Preliminary Budget. The 2022-23 Preliminary Budget item appears on this agenda under Public Hearings.

Attachments:

1. 2020-21 Comprehensive Annual Financial Report
Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 12 of 12 Printed on 9/12/2022 powered by Legistar™101
City of Hermosa Beach,
California
Annual
Comprehensive
Financial
Report
For the Year Ended June 30, 2021
102
City of Hermosa Beach
Hermosa Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2021
Prepared by the
Finance Department of Hermosa Beach
103
This page intentionally left blank.
104
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents
Page

INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal ................................................................................................................................................................ v Certificate of Achievement for Excellence in Financial Reporting – Government Finance Officers Association ............................................................................................................... xii Organizational Chart ............................................................................................................................................................ xiii Principal Officials of the City of Hermosa Beach ........................................................................................................... xiv

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ..................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................... 5 Basic Financial Statements:

Government – Wide Financial Statements:

Statement of Net Position .............................................................................................................................................. 19 Statement of Activities ................................................................................................................................................... 21 Fund Financial Statements:

Governmental Fund Financial Statements:

Balance Sheet ........................................................................................................................................................... 25 Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position .................................................................................. 26 Statement of Revenues, Expenditures,
and Changes in Fund Balances ....................................................................................................................... 27 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ..................................................................................................................................... 28 Proprietary Fund Financial Statements:

Statement of Net Position ....................................................................................................................................... 31 Statement of Revenues, Expenses, and Changes in Net Position ..................................................................... 32 Statement of Cash Flows ........................................................................................................................................ 33 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ..................................................................................................................... 37 Index to the Notes to the Basic Financial Statements .................................................................................................. 41 Notes to the Basic Financial Statements ......................................................................................................................... 43 i
105
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund.................................................................................................................... 80 Budgetary Comparison Schedule – FEMA Special Revenue Fund ....................................................................................... 81 Notes to the Budgetary Comparison Schedule .......................................................................................................................... 82 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous ............... 83 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Safety ............................. 84 Schedule of City’s Contributions – Pension - Miscellaneous ................................................................................................. 85 Schedule of City’s Contributions – Pension - Safety ............................................................................................................... 86 Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................................... 87 Schedule of the City's Contributions - OPEB ........................................................................................................................... 88 Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 93 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 99 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds:

Lighting and Landscaping District ............................................................................................................... 105 State Gas Tax .................................................................................................................................................. 106 AB 939 ............................................................................................................................................................. 107 Prop A Open Space ........................................................................................................................................ 108 Tyco .................................................................................................................................................................. 109 Parks/Recreation Facilities Tax .................................................................................................................... 110 Bayview Drive Administrative Expense ..................................................................................................... 111 Loma District Administrative Expense ....................................................................................................... 112 Beach Drive Assessment District Administrative Expense ...................................................................... 113 Proposition “C” ............................................................................................................................................... 114 Measure “R” .................................................................................................................................................... 115 Air Quality Management District ................................................................................................................. 116 Supplemental Law Enforcement Services................................................................................................... 117 Asset Seizure and Forfeiture ......................................................................................................................... 118 Fire Protection ................................................................................................................................................. 119 Community Development Block Grant ....................................................................................................... 120 Measure “M” ................................................................................................................................................... 121 RTI Undersea Cable ....................................................................................................................................... 122 RTI Undersea Cable Tidelands ..................................................................................................................... 123 Proposition “A” Transit ................................................................................................................................. 124 Grants ............................................................................................................................................................... 125 Measure “W” ................................................................................................................................................... 126 Sewer ................................................................................................................................................................ 127 Storm Drain ..................................................................................................................................................... 128 Nonmajor Debt Service Fund:
2015 Lease Revenue Bond ............................................................................................................................ 129 ii
106
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2021
Table of Contents (Continued)
Page
Supplementary Information (Continued):

Major Capital Project Fund:

Capital Improvements ................................................................................................................................... 130 Nonmajor Capital Project Fund:

Greenwich Underground ............................................................................................................................... 131 Internal Service Funds:

Combining Statement of Net Position ....................................................................................................................... 133 Combining Statement of Revenues, Expenses, and Changes in Net Position ...................................................... 134 Combining Statement of Cash Flows ......................................................................................................................... 135 Fiduciary Fund Financial Statements:

Combining Statement of Fiduciary Net Position ...................................................................................................... 137 STATISTICAL SECTION (Unaudited)
Net Assets by Component .......................................................................................................................................................... 141 Changes in Net Assets ................................................................................................................................................................ 143 Governmental Activities Tax Revenues By Source ............................................................................................................... 147 Fund Balances of Governmental Funds ................................................................................................................................... 149 Changes in Fund Balances of Governmental Funds .............................................................................................................. 151 General Government Tax Revenues By Source ..................................................................................................................... 153 Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... 154 Direct and Overlapping Property Tax Rates ........................................................................................................................... 155 Principal Property Taxpayers .................................................................................................................................................... 156 Property Tax Levies and Collections ....................................................................................................................................... 157 Construction Value and Property Value .................................................................................................................................. 158 Direct and Overlapping Debt ..................................................................................................................................................... 159 Legal Debt Margin Information ................................................................................................................................................ 161 Ratios of Outstanding Debt by Type ........................................................................................................................................ 163 Ratios of General Bonded Debt Outstanding .......................................................................................................................... 164 Demographic and Economic Statistics ..................................................................................................................................... 166 Principal Employers .................................................................................................................................................................... 167 Full-Time and Part-Time City Employees by Function ........................................................................................................ 168 Operating Indicators by Function ............................................................................................................................................. 169 Capital Asset Statistics by Function ......................................................................................................................................... 170

OTHER REPORT
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Preformed in Accordance with Government Auditing Standards .......................................................... 173 iii
107
This page intentionally left blank.
iv
108
v
March 31, 2022
Honorable Mayor and Members of the City Council and Citizens of Hermosa Beach, California:

Introduction
Presented herein is the Annual Comprehensive Financial Report (ACFR) of the City of Hermosa Beach for the fiscal year ended June 30, 2021. The report is intended to update readers on the status of the City’s financial position and results of operations for the past fiscal year.

Management's representations concerning the finances of the City of Hermosa Beach are contained herein.

Consequently, management assumes full responsibility for the completeness and reliability of all of the information presented in this report. To provide a reasonable basis for making these representations, management of the City of Hermosa Beach has established an internal control framework that is designed both to protect the government's assets from loss, theft, or misuse and to compile sufficient reliable information for the preparation of the City of Hermosa Beach’s financial statements in conformity with generally accepted accounting principles (GAAP). Because the cost of internal controls should not outweigh their benefits, the City of Hermosa Beach’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that the financial statements will be free from material misstatement. As management, we assert that, to the best of our knowledge and belief, this financial report is complete and reliable in all material respects.

Audit
The City of Hermosa Beach’s financial statements have been audited by Gruber and Lopez, Inc., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hermosa Beach for the fiscal year ended June 30, 2021, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Hermosa Beach’s financial statements for the fiscal year ended June 30, 2021, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.

GAAP requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of Management’s Discussion and Analysis. This letter of transmittal is designed to complement the Management Discussion & Analysis (MD&A) and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditor.

City of Hermosa Beach
Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885 109
vi
Profile of the Government
The City of Hermosa Beach is a beachfront,
bedroom community with a stable
population, located four miles south of Los
Angeles International Airport. The City
occupies 1.4 square miles and serves a
population of 19,451, according to the
State’s latest population estimate.

However as a beach city, the City
experiences a high visitor population and
the associated costs. Due to this high visitor
population, the City operates in many
ways like a larger city. During the 2020–21
fiscal year, beach attendance ranged from a
low of 177,900 in November 2020 to a high
of 953,000 in August 2020, according to the
Los Angeles County Fire Department,
Lifeguard Division. These numbers are
back to a more normal range than the 2019–
20 numbers which sank to a low of 418 in
April 2020 due to COVID-19.

The City of Hermosa Beach, incorporated on January 14, 1907 as a general law city, operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of five members of the City Council elected on a non-partisan basis at large for a fouryear term, with the exception of elections in 2017 and 2019 for which five-year terms were served.

Council members serve staggered terms, with an election every two years. One member is chosen by fellow members to serve as Mayor for a period of approximately one year (will return to standard term of nine months at the end of 2022 with the return of four-year terms); one is chosen to serve as Mayor Pro Tem. The terms of office for those elected in November of 2017 and 2019 were extended by one year to accommodate the election date change from odd-numbered years to even-numbered years effective November 2022, as approved by the City Council to coincide with County elections.

The Council is responsible for, among other things, establishing policy, passing ordinances, adopting an annual budget; appointing members to various City Commissions and Boards and hiring the City Manager and City Attorney. The City Manager is responsible for carrying out the policies and ordinances of the City Council, for overseeing the day-to-day operations of the government, and for appointing the heads of the various departments.

The City offers a full range of municipal services, including police, fire protection (provided by Los Angeles County beginning December 30, 2017), community development (planning and zoning), cultural, recreation and parks, maintenance and construction of public improvements, parking and animal control, and general administration. Financial information for the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Utility Underground Districts are included in the City's financial statements as required by governmental accounting standards.

Selected information from the U.S. Census Bureau’s Quick Facts shown on the following page. 110
vii
The U.S. Census Bureau Quick Facts are as of March 2022. Further data regarding the City may be found in the Statistical Section.

The annual budget serves as the foundation for the City of Hermosa Beach’s financial planning and control. All departments of the City of Hermosa Beach are required to submit revenue estimates and requests for appropriations to the Finance Director according to a budget calendar. The Finance Director and City Manager uses these requests as the starting point for developing a proposed budget, which is presented to the City Council for review by May 15. At least one public budget workshop is held prior to the required public hearing, with adoption required no later than June 30. If the City Council fails to adopt a budget by that date, the budget submitted by the City Manager, as amended by the City Council, if applicable, is the appropriated budget except for capital improvement outlays. The appropriated budget is prepared by fund and department (e.g., Police Department). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. The City Council receives monthly revenue and expenditure reports during the year and a midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budget-to-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted.

For the General Fund and major governmental funds with appropriated annual budgets, this comparison is presented as Required Supplementary Information on pages 80–88. For non-major governmental funds Category Hermosa Beach California Category Hermosa Beach California Persons under 5 years,
2020 estimate 5.2% 6.1%
Persons under 18 years,
2020 estimate 17.9% 22.8%
Persons 65 years and
over, 2020 estimate 13.6% 14.3%
Female persons, 2020
estimate 46.8% 50.3%
Non-Hispanic White 75.0% 36.5% Hispanic 11.2% 39.4%
Non-Hispanic Black 0.7% 6.5%
Non-Hispanic
American Indian 0.5% 1.6%
Non-Hispanic Asian 6.1% 15.5%
Persons per households,
2016-2020 2.23 2.94
Bachelor's Degree or
higher, persons age 25+,
2016-2020 77.0% 34.7%
High School graduate or
higher, persons age 25+,
2016-2020 97.9% 83.9%
Per capita income in the
past 12 months (2020
dollars), 2016-2020 $96,152 $38,576
Persons below poverty
level, 2016-2020 4.2% 11.5%
Households, 2016-2020 8,596 13,103,114
Owner-occupied
housing units, 2016-
2020 50.1% 55.3%
Median value of owneroccupied housing units,
2016-2020 $1,649,900 $538,500
Housing units in multiunit structures, 2020 45.7% 35.1% Households with a
computer, 2016-2020 97.8% 94.3%
Mean travel time to
work, 2016-2020 34.5 minutes 29.8 minutes
U.S. CENSUS BUREAU QUICK FACTS
111
viii
with appropriated annual budgets, this comparison is presented as Supplementary Information, after the Notes to the Financial Statements.

Factors Affecting Financial Condition
Local economy Just as departments were turning in their budget requests for the 2020-21 Budget in March 2020, the State issued a stay at home order and Hermosa Beach declared a local emergency due to the advent of the Coronavirus (COVID-19). The State’s surplus turned into a deficit and Hermosa Beach’s 2019–20 Budget was suddenly under duress, with departmental budgets just submitted for 2020–21 sent back to the drawing board for reductions and removal of additional requests.

Hermosa Beach is a “bedroom community” as evidenced by a household count of 8,596 and an in-city business count of 1,090 (excluding apartments and home occupations).

Hermosa Beach is very fortunate to have growth of 5.9 percent in secured and unsecured assessed valuation, which compares to Los Angeles County. The 5.9 percent growth was the 18th highest of 88 cities in Los Angeles County. Median home prices in Hermosa Beach as of June 2021 were $1,995,000, compared to $790,000 for Los Angeles County. The Hermosa Beach median home price for June 2020 was $1,937,500, compared to $643,000 for Los Angeles County. The average median home price for Hermosa Beach for fiscal year 2020–21 was $1,909,868 and $1,802,698 for fiscal year 2019–20.

General Fund Secured property taxes increased seven percent in 2020–21, roughly consistent with growth in assessed values. Historically, property adjacent to the beach has held its value better and has grown faster as compared to property in the other areas.

As a beach city, the three highest occupations continue to be management, sales, and administrative support. Residents typically enjoy access to a much more diverse employment base with the close proximity of all of the other cities in Los Angeles County. The unemployment rate in Hermosa Beach as of June 2021 is 7 percent, compared with 10.3 percent for Los Angeles County, and 8 percent for California. City and Los Angeles County rates improved over 2020 rates of 10.2 percent and 19.6 percent respectively while the state rose to 15.1 percent.

Sales tax receipts for 2020–21 are up 17 percent from the prior year primarily due to increases in the Other Retail and County and State Pool categories. The Eating/Drinking category which produces the most sales tax, was hard hit by the closures due to COVID-19. Sales tax from this category declined six percent.

The TOT tax rate increased from 12 percent to 14 percent on January 1, 2020 as a result of a measure placed on the ballot by City Council. Transient occupancy tax (the tax on hotel stays) decreased 12 percent (after adjusting for the rate increase from 12 to 14 percent) from 2019–20 due to COVID closures and stay at home orders. Average occupancy for 2020–21 was 44.7 percent vs. the prior year’s rate of 63.4 percent. The last three months of the fiscal year had average occupancy of 73 percent versus 35 percent the prior year so that is a positive trend. Hermosa Beach has nine hotels, one youth hostel, with room capacities ranging from 17 rooms to 96 rooms. There are also three new short term vacation rentals in the commercial area with four rooms/units.

Utility user tax (UUT) revenue was up 3.7 percent last year and is the fourth highest source of tax revenue at $2.2 million. The largest increase was in the category of cellular phone service and cable television.

See Management’s Discussion and Analysis for more revenue details.

Accounting changes. In 2014–15 the City implemented Government Accounting Standards Board (GASB) Statement No 68, Accounting and Financial Reporting for Pensions, which required net pension liabilities to be included in the financial statements for the first time, and Statement No 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which was essentially a cleanup provision. Net pension liabilities of $51,477,782 were recorded in 2020–21 and the unrestricted net position was reduced accordingly. The change in accounting standards impacted only the government-wide financial 112
ix
statements, notes, and required supplemental information. There is no impact to the fund financial statements. See Note 9 for more information.

In 2017–18 the City implemented GASB 75, Accounting and Financial Reporting for Postemployment Benefits Other than Pensions, effective July 1, 2017, which requires net OPEB liabilities to be included in the financial statements for the first time. GASB 75 updates Other Postemployment Benefit (OPEB) accounting and financial reporting standards to be consistent with the pension standard in GASB 68.

Similar to GASB 68, the change in accounting standards impacted only the government-wide financial statements, notes, and required supplemental information. There is no impact to the fund financial statements. See Note 10 for more information.

As a matter of record, the following GASB statements are effective for the June 30, 2021 financial statements. GASB Statement 84, Fiduciary Activities, establishes criteria for identifying fiduciary activities of all state and local governments. GASB Statement 90, Majority Equity Interest, improves the consistency and comparability of reporting a government’s majority interest in a legally separate organization and improves the relevance of financial statements for certain component units.

The City implemented GASB 98, the Comprehensive Financial Report, which establishes the term annual comprehensive financial report and its acronym ACFR, replacing instances of comprehensive annual financial report and its acronym. For more information see Note 1, Section Q- Accounting Changes.

California Public Employees Retirement System (CalPERS). The preliminary CalPERS investment return as of June 2021 was 21.3 percent, bringing the total fund performance to 10.3 percent for the fiveyear period, 8.5 percent for the ten-year period, and 6.9 percent for the twenty-year period. The 2020–21 rate of return triggered a reduction in the discount rate used to calculate employer and Public Employee’s Pension Reform Act (PEPRA) member contributions due to the Funding Risk Mitigation Policy approved in 2015. The Funding Risk Mitigation policy lowers the discount rate in years of good investment returns.

The discount rate, or assumed rate of return, dropped from 7 percent to 6.8 percent. This is the first time the policy has been triggered.

In February 2018, CalPERS adopted a new amortization policy. The new policy applies only to newly established amortization bases and requires fixed dollar (level) amortization rather than percent of pay (escalating). Gains and losses are amortized over 20 rather than 30 year, with a five-year ramp up for investment gains and losses (no ramp down) and no ramp up or down for other amortization bases. The policy minimizes total interest paid over time and pays off UAL faster. It is effective with the June 30, 2019 valuation for 2021–22 contributions.

In December 2017, the CalPERS Board adopted new actuarial assumptions based on the 2017 CalPERS Experience Study and Review of Actuarial Assumptions, which impacted the 2019–20 required contributions.

On December 20, 2016, the CalPERS Board approved a change in the discount rate from 7.5 percent to 7 percent over three years. The change is implemented over a three year period beginning in 2018-19.

Lowering the discount rate, also known as the assumed rate of investment return, means that employers will see increases to contribution rates and higher unfunded liability payments. The City’s miscellaneous and safety plans had side funds (which are liabilities that existed in 2003 when CalPERS “pooled” the City’s plans with other cities of similar size) that paid off from 2018-19 to 2019-20 which helped mitigate the rate increases.

The City created a Retirement Stabilization Fund in 2003-04 to plan for anticipated rate increases. This amount now appears as part of the “committed” balance in the General Fund in the amount of $1,021,575.

Funds will be placed in a retirement trust when the budget is back to a more predictable state.

Long-term financial planning. The City’ adopted financial policies address a range of items including accounting and reporting, internal controls, budget, revenue, debt service and investments. The policies are published in the budget and reviewed annually.
113
x
The City Council’s adopted financial policies relating to long-term financial planning for specific funds are as follows:

Insurance Fund—Goal of $3,000,000 in net assets for aberrations in claims reserves and catastrophic losses.

Equipment Replacement Fund—Goal of net assets equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment.

Contingency—Goal equal to 16 percent of the General Fund appropriations for economic uncertainties, unforeseen emergencies.

Compensated Absences—Goal equal to 25 percent funding for accrued liabilities for employee vacation, sick and compensatory time.

The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, Capital Improvement Fund, Capital Facility Reserve, and to add to Contingency Funds as needed. The City Council makes changes as necessary to the year- end transfer, depending on the equity in the funds or based on other needs.

The City had unspent funds of $5,834,252 in 2020–21 as a result of improved revenue and salary savings due to vacant positions and employee leaves. Due to the ongoing economic uncertainty related to the COVID-19 pandemic, the City Council agreed to leave the unspent funds in the General Fund, with recommendations for use of the funds to be presented as a part of the 2022–23 Preliminary Budget.

Historically as part of the budget process, a five year financial forecast is developed and presented with the Preliminary Budget and Five-Year Capital Improvement Program. The Fiscal Health Model is used as part of the forecast to present scenarios depicting the city’s ability to fund each scenario.

Primary capital projects coming up, (other than street and sewer improvements, which occur every year) include Bus Stop Improvements, Pay-By-App Parking Signage, PCH Mobility Improvement Project, Strand Bikeway and Walkway Improvements at 35th Street, Park Planting Improvements, Prospect Ave Curb Ramps, South Park Slope and Irrigation Repairs, City Wide ADA Improvements, Downtown Lighting Improvements, Downtown Strategic Plan Implementation, New Corporate Yard Facility, Municipal Pier Structural and Electrical Repairs, City Park Restrooms and Renovations, Parking Lot D improvements, Emergency Operations Center Renovations, Clark Building Renovations, 14th Street Beach Restroom Construction, Parking Lot A Improvements, Police Station Improvements, ADA Improvements, and Parking Structure (Lot C) Improvements.

Cash management policies and practices. Temporarily idle cash was invested during the year in obligations of the U.S. Treasury, certificates of deposit, the State Treasurer's investment pool and the Los Angeles County pool. The average maturity was 60 months, with an average weighted yield on investments of 2.2 percent. Investment income includes changes in the fair value of investments. Changes in fair value during the current year, however, do not necessarily represent trends that will continue nor do such amounts necessarily become realized since the City intends to hold the investments to maturity.

Risk management. The City is self-insured up to $250,000 for liability claims. Through a blend of selfinsurance and reinsurance, the City has excess coverage up to $40 million obtained through the Independent Cities Risk Management Authority (ICRMA), a joint powers authority consisting of mediumsized California municipalities. The cost of the insurance depends on both the loss experience of member cities, the loss experience of the City and the City’s payroll size.

The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA, with excess coverage through Safety National Casualty Company, providing coverage up to the statutory limits.
114
xi
Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the Human Resources Manager.

Additional information on the City’s risk management activity can be found in Note 8 of the Notes to the Financial Statements.

Pension and other post-employment benefits. The City provides pension benefits to safety and nonsafety employees through the California Public Employees Retirement System (CalPERS). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The City was successful in negotiating two tier rates for new employees in all bargaining units beginning in 2011-12. With the State’s pension reform implemented January 1, 2013, the City now has three tiers. As of June 30, 2021, the City has fifty-three (53) active Tier 1 employees, seventeen (17) active Tier 2 employees and seventy-three (73) active employees in Tier 3. The City paid employee contributions as a negotiated benefit for many years however in 2012-13 the City negotiated that employees would begin paying the entire share of the employee contribution over three years with an offsetting increase in salaries, which was achieved as of 2014-15. All of these changes enacted reduce pension costs over time. City employer contributions are actuarially determined on an annual basis.

The City also provides post-employment health care benefits for certain retirees. As of the end of the current fiscal year, there were 69 retirees receiving these benefits.

The City established a trust with an outside party to administer these funds in July 2007. The City is contributing the annual required contribution for all employees as determined by an actuarial study in the manner as is done for retirement contributions to CalPERS. The concept of a retirement trust was approved by City Council in June 2018 and $829,060 from the Police side fund payoff savings was set aside in the 2019–20 to be placed in the retirement trust.

Additional information on the City of Hermosa Beach’s pension arrangements and other postemployment benefits can be found in Notes 9 and 10 in the Notes to the Basic Financial Statements.

Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a 2020 Certificate of Achievement for Excellence in Financial Reporting to the City of Hermosa Beach for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2020. This was the thirtieth consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a report must be published that satisfies both GAAP and applicable legal requirements.

A Certificate of Achievement is valid for a period of one year only. We believe that our current Annual Comprehensive Financial Report continues to meet the Certificate of Achievement Program's requirements and we are submitting it to the GFOA to determine its eligibility for another certificate.

The preparation of this report would not have been possible without the efficient and dedicated services of the entire staff of the Finance Department. We would also like to express our appreciation to the City Manager and all of the departments, including the City Clerk and City Treasurer, and to our auditors, Gruber and Lopez, Inc, for their assistance and support in preparation of the report. Credit also must be given to the Mayor and the City Council for their continuing support for maintaining the highest standards of professionalism in the management of the City of Hermosa Beach’s finances.

Respectfully submitted,
Viki Copeland
Finance Director
115
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hermosa Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Executive Director/CEO
xii
116

CITY OF HERMOSA BEACH ORGANIZATIONAL CHART

ELECTORATE

CITY COUNCIL

PLANNING

COMMISSION
PUBLIC
WORKS

COMMISSION
BOARD
OF

APPEALS

PARKS &

RECREATION

ADVISORY

COMMISSION

CITY TREASURER
CITY

MANAGER
CITY
MANAGER’S
OFFICE
POLICE
CITY

ATTORNEY
CITY

PROSECUTOR
CIVIL

SERVICE
BOARD

CITY CLERK

DEPARMENT

COMMUNITY

DEVELOPMENT COMMUNITY

RESOURCES

FINANCE
HUMAN

RESOURCES/RISK

MANAGEMENT

PUBLIC WORKS

BUILDING AND SAFETY
Plan Checking; Field Inspection; Code
Enforcement

PLANNING
Current Planning; Advanced Planning;
Sustainability Planning; Environmental
Assessment; Land Use Entitlements
Custodian of Public Records + Information;
Maintenance of City Codes; Publication of Legal
Notices; Elections Management; BID
Management; Administration of Oaths; Notary
Services

GENERAL OPERATIONS
City Council Support; Communications +
Community Engagement; Legislative Affairs;
Performance Mgmt.; Grant Management;
Economic Development; Environmental
Programs; Special Projects/Initiatives;
Emergency Management; Information
Technology; Fire Services (contract LA Co FD)

RECREATION
Facility Reservations; Community Theatre;
Athletic Programming; Excursions & Senior
Programs

YOUTH PROGRAMS
After School Programs; Summer Camps

PERMITTING
Special Events; Filming; Outdoor Fitness
Instruction

FINANCE ADMINISTRATION
Budget; Accounting; Payroll

FINANCE CASHIER
Citation Processing; Animal Licenses; Parking
Permits; Business Licenses; Bus Passes

HUMAN RESOURCES
Recruitment; Training; Labor Relations

RISK MANAGEMENT
Worker’s Comp; Liability Claims; City
Insurance; Administrative Support

FIELD OPERATIONS
Patrol Bureau; Traffic Bureau; Community Lead

INVESTIGATIVE & SUPPORT SERVICES
Detective Bureau; Administration; Police Service
Officers

COMMUNITY SERVICE
Parking Enforcement; Animal Control;
Community Safety Programs; Volunteers In
Policing

ENGINEERING
Plan Checks; Field Inspection; Code
Enforcement; Traffic Engineering;
Signals/Signage; Speed Survey; Capital
Improvement Program

MAINTENANCE
Landscaping; Irrigation; Street; Sewers;
Storm Drains; Building Maint.; Vehicle
Maint.
xiii 117
xiv

PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2021
Elected and Administrative Officials
City Council
Justin Massey Mayor
Michael Detoy Mayor Pro Tem
Stacey Armato Councilmember
Mary Campbell, Ph.D. Councilmember
Raymond Jackson Councilmember

Other Elected Official
Karen Nowicki City Treasurer
Administrative Officials
Suja Lowenthal City Manager
Eduardo Sarmiento City Clerk
Ken Robertson Community Development
Director
Kelly Orta Community Resources
Manager
Viki Copeland Finance Director
Vanessa Godinez Human Resources
Manager
Paul LeBaron Police Chief
Angela Crespi Deputy City Manager /
Interim Public Works
Director
118
To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California
Independent Auditors’ Report
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California (the “City”), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.

Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by Comptroller General of the United States.

Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion.

An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City as of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
1 119
To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California

Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedule-General Fund, Budgetary Comparison Schedule-FEMA Special Revenue Fund, Budgetary Comparison Schedule-Capital Improvements Capital Projects Fund, Schedule of Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions - Pension, Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of City’s Contribution - OPEB on pages 5 to 16 and 80 to 88, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The Introductory Section, Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual, and Statistical Section, are presented for purposes of additional analysis and are not a required part of the basic financial statements.

The Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Combining and Individual Nonmajor Fund Financial Statements and the Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual are fairly stated in all material respects in relation to the basic financial statements as a whole.

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them. 2 120
To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 31, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

Newport Beach, California
March 31, 2022
3 Gruber and Lopez, Inc.

Gruber and lopez, Inc.
121
This page intentionally left blank.
4 122
5 Management's Discussion and Analysis
As management of the City of Hermosa Beach, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2021. We encourage readers to consider the information presented here in conjunction with additional information (particularly with respect to the effect of COVID-19 on financial condition) that is furnished in the letter of transmittal, which can be found on pages v - xii of this report.

Financial Highlights
• The assets and deferred outflows of resources of the City of Hermosa Beach exceeded its liabilities and deferred inflows of resources at the close of the last fiscal year by $60,081,812 (net position). Excluding the $51,477,782 net pension liability, $38,037,706 represents unrestricted net position and may be used to meet the government's ongoing obligations. • The City’s net position decreased by $473,913
• As of June 30, 2021, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $41,914,355, an increase of $6,409,747 in comparison with the prior year. This increase is due to revenue exceeding expenditures in the current year.  At the end of the current fiscal year, the City of Hermosa Beach’s governmental fund balances of $41,914,355 are comprised of non-spendable funds; $575,897, restricted; $10,427,092 committed; $4,587,847; and assigned; $21,316,310 to indicate that funds are not available for new spending. Although funds are shown in the committed or assigned category, the City Council still does have discretion over the use of these funds and may change the committed or assigned use. Under that scenario, approximately 62 percent, or $25,904,157 of the $41,914,355 in funds could be redirected at the discretion of the City Council. An additional $5,007,209 or 12 percent is unassigned. See Note 11 in the Notes to the Basic Financial Statements.  At the end of 2020–21, $5,834,252 of unspent funds remained in the General Fund as a result of increased revenue and lower expenditures due to vacancies and employee leaves. Due to the economic uncertainty from the ongoing COVID-19 pandemic, unspent funds were not transferred to another fund at the end of the fiscal year. The General Fund also has a committed and assigned fund balance of $12,665,093 or 35 percent of total General Fund expenditures.

Overview of the Financial Statements
This discussion and analysis is intended to serve as an introduction to the City of Hermosa Beach’s basic financial statements. The basic financial statements are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to the financial statements. The report also contains other supplementary information in addition to the basic financial statements themselves.

Government-wide financial statements are designed to provide readers with a broad overview of the City of Hermosa Beach’s finances, in a manner similar to a private-sector business.

The Statement of Net Position presents information on all the City of Hermosa Beach’s assets plus deferred outflows or resources (“DOR”) and liabilities plus deferred inflows of resources (“DIR”), with the difference between the assets plus DOR and liabilities plus DIR reported as net position. 123
6 Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating.

The Statement of Activities presents information showing how the government's net positions changed during the most recent fiscal year. All changes in net positions are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned, but unused, vacation leave).

The governmental activities of the City of Hermosa Beach include legislative and legal, general government, public safety, public works, community development, and culture and recreation.

The government-wide financial statements include not only the City of Hermosa Beach itself, but also the Lighting and Landscaping District, the Lower Pier Avenue Assessment District and the Myrtle Avenue, Loma Drive, Bayview Drive and Beach Drive Utility Underground Districts. Although these entities are legally separate, they function for all practical purposes as part of the City, and therefore have been included as an integral part of the primary government.

The Government-Wide Financial Statements can be found on pages 19-22 of this report.

Fund financial statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Hermosa Beach, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on nearterm inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government-wide financial statements.

By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.

The City of Hermosa Beach maintains thirty-two individual governmental funds. Information is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balance for the following funds, which are considered to be a major fund:

General Fund
Federal Emergency Management Agency (FEMA) Special Revenue Fund Capital Improvement Capital Projects Fund
Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets and DOR or liabilities and DIR are at least 10 percent of corresponding totals for all 124
7 governmental or enterprise funds and at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

Data from the other twenty-nine governmental funds are combined into a single, aggregated presentation. Individual fund data for each of these non-major governmental funds is provided in the form of combining statements in the Supplementary Information section in this report.

The City of Hermosa Beach adopts an annual appropriated budget for its funds. A budgetary comparison statement has been provided for the General Fund, FEMA Special Revenue Fund, and Capital Improvement Capital Projects Fund in the Required Supplementary Information and Supplementary Information sections to demonstrate compliance with this budget.

The basic governmental fund financial statements can be found on pages 25-28 of this report.

Proprietary funds. The City of Hermosa Beach maintains one type of proprietary fund.

Internal service funds are used to accumulate and allocate costs internally among the City of Hermosa Beach’s various functions. The City of Hermosa Beach uses internal service funds to account for its fleet of vehicles, information systems and equipment, and risk management/insurance activities. Because these services predominantly benefit governmental rather than business-type functions, they have been included within governmental activities in the government-wide financial statements.

Internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements. Individual fund data for the internal service funds is provided in the form of combining statements elsewhere in this report.

The basic proprietary fund financial statements can be found on pages 31-33 of this report.

Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City of Hermosa Beach’s own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. Funds of the Lower Pier Avenue, Myrtle Avenue, Loma Drive, Bayview Drive, and Beach Drive Undergrounding Districts are held as fiduciary funds.

The fiduciary fund financial statements can be found on page 37 of this report.

Notes to the financial statements. The notes provide additional information that is essential to a full understanding of the data provided in the government-wide and fund financial statements.

The notes to the financial statements can be found on pages 43-78 of this report.

Required supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Hermosa Beach’s major funds. Required supplementary information can be found on pages 80-88 of this report.

Other supplementary information. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately following the required supplementary information. Other supplementary information can be found on pages 97-137 of this report
125
8 Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2021, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $60,081,812. Without the net pension liability of $51,477,782, the net position would be $111,559,594.

The City implemented GASB 68, Accounting and Financial Reporting for Pensions for the June 30, 2015 financial statements and GASB 75, Accounting and Financial Reporting for Postemployment Benefits, for June 30, 2018 financial statements, which require the City to include its net pension and OPEB liabilities in the government-wide financial statements for the first time. Similar to the City’s longterm debt, the net pension and OPEB liabilities are payable over an extended time horizon and do not represent a claim on current financial resources. The statements implement changes to accounting and reporting; they do not apply to the way pensions or other postemployment benefits are funded.

For more information on the implementation of GASB 68 and 75, please refer to Notes 9 and 10 in the Notes to the Basic Financial Statements.

While the city is now required to show the net pension and OPEB liabilities in the government-wide statements, according to the Governmental Finance Officers Association (GFOA) the underlying factual situation has not changed. Standard and Poor’s (the rating agency who rated the City’s bonds) indicated that GASB 68 will lead to more conservative liability estimates and provide some additional disclosure.

They will continue to focus on commitment to funding, investment performance, trend analysis, affordability, and maintaining plan sustainability. The Annual Required Contribution (ARC) for pension will continue to be reported as the Actuarially Determined Contribution. Standard and Poor’s believes this is an easily recognizable and understandable measure for governments. They currently estimate with what frequency governments fully fund their ARC (which Hermosa Beach does 100 percent of the time).

The major components of GASB 68 and GASB 75 that affect the Statement of Net Position for Government-wide are:
 Deferred Outflows of Resources- Includes the deferred pension and OPEB contribution, which is equal to the total amount of the 2020–21 contributions. The contributions are deferred to 2021–22 because the net liability balance is one year in arrears. Also includes changes in assumptions, the difference between projected and actual investment earrings and the difference between the employer contributions and the employer’s proportionate share of contributions (for pensions).
 Net Pension and Net OPEB Liabilities (recorded in Long-Term Liabilities) - Represents the actuarially valued liabilities Plans as of June 30, 2020.  Deferred Inflows of Resources- Includes changes in assumptions, the difference between the expected and actual earnings on investments (amortized on a straight-line basis over five years), changes in employer’s proportion (for pensions), and differences between employer contributions and the employer’s proportionate share of contributions (for pensions).

The largest portion of the City of Hermosa Beach’s net position, $65,145,247 reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.
126
9 A portion of the City of Hermosa Beach’s net position $8,376,641 represents resources that are subject to external restrictions on how they may be used.

Compliance with GASB 68 and GASB 75 require that the City’s net pension and OPEB liabilities are recorded on the Statement of Net Position, which reduces unrestricted net position and creates a negative unrestricted net position or deficit of ($13,440,076). Excluding the $51,477,782 net pension liability $38,037,706 is available to meet the City’s ongoing obligations to residents.

At June 30, 2021, the City is able to report positive balances in all categories of net position for the government as a whole except for unrestricted due to the implementation of GASB 68 and the inclusion of the net pension liability, which will likely remain a long-term liability for several decades. The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ending June 30, 2021 and June 30, 2020.

Governmental Activities. Governmental activities decreased the City of Hermosa Beach’s net position by $473,913. Significant elements of this change are as follows:
2021 2020
Revenues:

Program Revenues:

Charges For Services 9,175 $                        $                   9,048 Operating Grants and Contributions 2,640                                                3,419 Capital Grants and Contributions 46                                                          834 General Revenues:

Property Taxes 20,966                                            19,585 Other Taxes 10,427                                              9,857 Grants and Contributions Not
Restricted to Specific  Programs 2,491                                                1,829 Other 745                                                    1,500 Total Revenues 46,490                                            46,072 Expenses:

Legislative and Legal 1,868                                                1,644 General Government 6,184                                                6,024 Public Safety 26,943                                            25,546 Community Development 2,726                                                3,215 Culture and Recreation 1,571                                                1,867 Public Works 7,272                                                7,515 Interest and Fiscal Charges 40                               0                          296 Total Expenses 46,964                                            46,107 Increase (Decrease) in Net Position (474)                                                       (35) Net Position ‐ Beginning 60,556 $                     $                 60,591 Net Position ‐ Ending 60,082 $                     $                 60,556 Changes in Net Positions
June 30, 2021
(dollarsin thousands)
Governmental Activities
127
10 Revenue for Governmental Activities
 Property tax revenue increased $1,381,501 or 7.1 percent, which is in line with continued growth in property values.
 Sales Tax revenue increased by $470,385 or 17.3 percent. Sales tax receipts for 2020–21 are up from the prior year primarily due to increases in the Other Retail and County and State Pool categories. The Eating/Drinking category which produces the most sales tax, was hard hit by the closures due to COVID-19. Sales tax from this category declined 6 percent.
 Transient Occupancy Tax (TOT) revenue decreased $46,846 or 1.8 percent. Reported occupancy rates were down from 63.4 percent for 2019–20 to 44.7 percent in 2020–21.

While the State Stay at Home order due to COVID-19 and pandemic related restrictions greatly impacted this category, revenue was boosted by a new hotel which opened in October 2020, three permitted short-term vacation rentals began paying TOT in the spring, and TOT rate increased from 14 percent from 12 percent. Adjusting the rate in 2019–20 to compare the two years would result in a decrease of 12 percent. The last three months of the year reflected average occupancy of 73 percent versus 35 percent the prior year so this is a positive trend. The rate increase was effective January 1, 2020, so fiscal year 2020–21 was the first full fiscal year under the new rate.  Utility User Tax was up $77,635 or 3.7 percent. The largest increase was in the category of cellular phone service and cable television.
 Capital Grants & Contributions decreased by 787.827 or 94.5 percent due to limited Capital Improvement Project (CIP) activity due to COVID-19 and staffing constraints.  Real Property Transfer Tax increased $140,265 or 44.8 percent due to the sale of two large condominiums.
 Miscellaneous revenue decreased $754,730 or 50 percent. In 2019–20, there was one-time prior year reimbursement of $203,000 in the Insurance Fund. Additionally, in 2020-21, Community Center Rentals declined due to COVID-19 related restrictions and interest income decreased due to lower interest rates.
128
11 Expenses for Governmental Activities
Expenses for Governmental Activities increased by $856,933 or 1.9 percent.

Legislative and Legal expenses increased by $224,367 or 13.6 percent due to the May 2021 special election to fill a vacant position on the City Council.

Public Safety expenses increased by $1,396,349 or 5.5 percent. When comparing Public Safety expenditures in the Statement of Revenue, Expenditures, and Changes in Fund Balance, Public Safety expenditures are up by $479,484 from 2019-20, primarily due an increase in the unfunded accrued liability payment (UAL) for Fire retirement costs, the annual increase to the Fire Services Contract, purchases of body cameras and a new contract for unmanned aerial support program.

Community Development expenses decreased by $489,506 or 15.2 percent. The increase is primarily due to the GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. When comparing Community Development expenditures from the Statement of Revenue, Expenditures, and Changes in Fund Balance, Community Development expenditures are up by $36,877 over 2019–20.

Culture and Recreation expenses decreased by $295,843 or 15.8 percent primarily due to a full year of reduced programming as a result of the pandemic.

The remaining functional expense categories had minor changes over the prior year. General increased by $159,968 or 2.7 percent. Public Works expenses decreased by $243,144 or 3.2 percent.

Interest and fiscal charges increased in 2020–21 in the amount of $104,742 or 35.4 percent.

Revenue: 2020 2019
Property Taxes 20,966,460 $ 19,584,959 $
Charges for Services 9,175,312 9,048,057
Sales Taxes 3,192,853 3,419,173
Operating Grants & Contributions 2,640,033 2,722,468
Transient Occupancy Tax (TOT) 2,552,964 2,599,810
Other Taxes 2,509,401 2,440,297
Grants & Contributions not Restricted to Specific Programs 2,490,562 2,093,903 Utility Users Taxes 2,171,538 1,829,299
Miscellaneous 745,148 1,499,878
Capital Grants & Contributions 45,817 833,644
Total Revenues 46,490,088 $ 46,071,488 $
129
12 Financial Analysis of the Government’s Funds
As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

Governmental funds. The focus of the City of Hermosa Beach’s governmental funds is to provide information on near-term inflows, outflows, and balances of spending resources. Such information is useful in assessing the City of Hermosa Beach’s financing requirements. These funds are accounted for by using the modified accrual basis of accounting. Types of governmental funds reported by the City include the General Fund, Special Revenue funds, and Capital Projects funds.

As of the end of the current fiscal year, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $41,914,355, an increase of $6,409,747 in comparison with the prior fiscal year. See Note 11 for more information. The total fund balances of the governmental funds consist of the following:
 Non-spendable fund balance of $575,897 represents prepaid items, primarily comprised of the July 2021 payment to the County for Fire Services.
 Restricted fund balance of $10,427,092 which have restrictions imposed by external parties or enabling legislation. Funds in this category include Lighting District Funds, Gas Tax Funds, Proposition A and C Transportation Funds, Measure R, M and W Funds, Asset Forfeiture Funds, Supplemental Law Enforcement Funds (COPS), Fire Protection Funds, and Sewer and Storm Drain Funds.
 Committed fund balance of $4,587,847 which includes retirement stabilization funds and reserves for a retirement trust.
 Assigned fund balance of $21,316,310 which includes the amounts to be used for specific purposes of the City, but that do not meet the criteria to be classified as restricted or committed. Funds in 130
13 this category include Contingency funds (“rainy day” funds), Compensated Absences funds, Capital Projects, Capital Improvements, Capital Facilities Reserve, and Storm Drain funds.  Unassigned fund balance of $5,007,209, which is the unspent funds of $5,834,252 in the General Fund reduced by a due to other funds liability of $827,043 primarily for COVID-19 related claims in the FEMA Fund.

The General Fund, FEMA Special Revenue Fund, and Capital Improvement Capital Projects Fund qualified as major funds under the GASB Statement No. 34, Basic Financial Statements – and Management Discussion and Analysis – for State and Local Governments, reporting criteria.

The General Fund balance increased in 2020-21 by $6,374,516. The fund balance primarily increased due to $5,834,252 in unspent funds that remained in the fund balance at year end instead of being transferred to the Capital Improvement, Insurance, or Equipment Replacement Funds.

Overall General Fund revenue increased by 3.9 percent over 2019–20, which was greatly impacted by the COVID-19 pandemic and stay at home orders the final four months of the year. The increase is a result of the following: an increase in property taxes of 7.3 percent, an increase in sales tax of

17.3 percent; an increase in other taxes of 1.6 percent, an increase in licenses and permits of 23.9 percent, and an increase in miscellaneous of 97.8 percent. The increases were partially offset by a decrease in fines and forfeitures of 1.4 percent, a decrease in use of money and property of 22.4 percent, a decrease in intergovernmental of 20.8 percent, and a decrease in charges for services of

1.4 percent.

General Fund expenditures show a decrease of 1.8 percent. The decrease is primarily due to General Government, Culture and Recreation, and Capital Outlay. In an effort to balance the 2020–21 budget after revenue declines as a result of COVID-19, 10 vacant positions were frozen, two positions in General Government, Deputy City Manager and Management Analyst. The part-time Senior Account Clerk position was also eliminated. The Assistant to the City Manager position was later frozen in place of the Deputy City Manager position. The Community Resources department had reduced expenditures due to reduced programing as a result of the pandemic. Capital Projects were not funded from the General Fund. Legislative and Legal expenditures increased in 2020–21 primarily due to the May 2021 special election held to fill a vacant City Council seat.

General Fund Budgetary Highlights
The COVID-19 pandemic and related stay at home orders occurred just after the initial 2020–21 budget estimates were prepared. City staff revised all revenue and reduced expenditures and supplemental requests. Ten (10) staff positions were frozen for 2020–21.

The final amended budget for revenue other than transfers increased by 5 percent from the adopted budget, based on revenue trends from the first five months of the year. Actual revenue exceeded the final budget by $2,323,207 or 5.8 percent for the following reasons:
 Property tax was up $535,503 or 2.7 percent.
 Other taxes were up $721,141 or 8 percent due to conservative year end estimates for TOT.

Hotel occupancy rebounded from the 30 percent assumption based on the prior year.  Fines and Forfeitures were up $151,332 or 7.7 percent primarily due to count fines/parking. 131
14  Charges for Services were up $1,030,210 or 20.5 percent due to conservative year end budget reductions for parking related revenue and contract recreation classes and other recreation programs.

While it is good news that actual revenue exceeded the final budget by 5.8 percent, revenue is still $1,171,316 below 2018–19 or 2.8 percent.

The final amended budget for appropriations other than Transfers Out increased over the original budget by 2 percent. Actual expenditures other than Transfers Out were less than the final appropriations by 9.1 percent primarily due to vacant positions and unspent capital improvement program and one-time funds.

Capital Asset and Debt Administration
Capital assets. The City of Hermosa Beach’s net investment in capital assets for its governmental activities as of June 30, 2021, amounts to $65,145,247 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, highways, and monuments.

Capital asset events during the fiscal year included the following:

Governmental Activities
 Hermosa Ave Green Street Improvements of $137,500.
 Storm Drain Improvements of $173,390.
 Council Chamber Improvements of $169,829.

Additional information on the City of Hermosa Beach’s capital assets can be found in Note 6.

Sewer Fund
City Council approved a transfer of $3,000,000 from the Sewer Fund to the General Fund as a part of the 2020–21 Adopted Budget. This allowed the City to not use any contingency funds to cover the anticipated revenue shortfall due to the COVID-19 pandemic. The transfer along with sewer improvements and the annual costs to maintain the City’s sewers net against revenue of $1,315,911 resulted in a decrease in the fund balance of $2,193,538. The ending fund balance in the Sewer Fund is $3,134,046.

Capital Improvement Fund
Projects funded from the Capital Improvement Fund in 2020-21 include: Fire Station Rehabilitation, PCH Traffic Improvements, Storm Drain Improvements, Citywide ADA Improvements, Downtown Strategic Plan Implementation, Police Facilities Improvements, New Corporate Yard Facilities, Parking Structure Assessment, Municipal Pier Electrical Repairs, Clark Building Renovations, and City Park Restroom Renovations. The fund balance decreased by $716,214. The ending fund balance of $8,550,329 includes $1,267,968 in the Capital Facilities Reserve.

Insurance Fund
The City’s established goal for net position in the Insurance Fund is $3,000,000. The balance at June 30, 2020 was under the funding of $3 million due to transfers to the General Fund at year-end. Claims expenses and adjustments for actuarially determined claims payable were higher than expected, resulting in the ending balance of $1,103,110.
132
15 Economic Factors and Next Year's Budgets and Rates
 On April 25, 2017, the City Council voted to contract fire services in Hermosa Beach with the Los Angeles County Consolidated Fire District. The 2021–22 Budget includes the fourth full year with the County, equipment conversion costs, and payments for the renovation of the Fire Department facility. The 2021–22 Budget also includes the following:
o $6,778,522 is committed for Contingency in the General Fund, which is 16 percent of operating expenditures and in line with our financial policy and the Council goal for a “Financially Sound City Government”. No funds from the Contingency were used to offset any impact of COVID-19.
o $2,310,878 is transferred to the General Fund from the American Rescue Plan Act (ARPA) of 2021 Fund to partially restore staffing to pre-pandemic levels and for the provision of public safety to the extent of the reduction in revenue due to the COVID-19 health emergency.
o $661,345 is transferred from the General Fund for the 2020 Refunding Lease Revenue Bonds debt service. The 2015 Lease Revenue Bonds were refunded in 2020–21, saving approximately $1 million over the life of the bonds.
o $19.5 million of Capital Improvement Projects are funded, which includes $3.2 million in new funding. CIP projects will continue to move forward. o Healthcare benefits are assumed to increase nine percent for medical and four percent for dental. The actual rates are typically lower than the assumed increase.

Revenue Trends and Assumptions
What a difference a year makes. In June 2021, the City unemployment rate was 6.2 percent versus June 2020 of 11.4 percent. Los Angeles County was 10 percent versus 17.8 percent as of June 2021. The State’s unemployment was 8.2 percent versus. 14.2 percent in June 2020. The State’s surplus has grown to $76 billion according to the Governor’s Office or $38 billion according to the Legislative Analyst’s Office.

Either amount is miraculous compared to the projected $54.3 billion deficit for last year.

There are encouraging changes occurring locally with respect to businesses re-opening, the continuation of enhanced outdoor dining, the virus receding and the ability to move about more freely.

All of these are hopeful signs of a recovery in progress. Since there is no precedent for projecting revenue under these pandemic circumstances, we are moving forward cautiously. Preliminary revenue estimates for 2021–22 suggest an increase of four percent, excluding one-time funds.

Property tax, the largest and most stable source of revenue is projected to increase by 3.3 percent. With the seventeen percent increase in sales tax and increased occupancy in hotels, a recovery seems likely.

Utility user tax revenue has been relatively stable.

The City Council adopted several measures to assist the community and businesses early on during the stay-at-home order. Additional measures adopted in 2020–21 include:
 Business License Taxes were deferred for those closed from March 2020 forward with refunds given to those who paid but were subsequently closed.
133
16  Restaurant encroachments fees continued to be suspended until further notice.  Temporary permits developed for outdoor dining and outdoor dining areas expanded to assist restaurants were extended through May 2022.
 Temporary moratoriums on foreclosures and evictions implemented for those affected by COVID-19 were extended through September 2021.

The City’s ongoing goal is to continue offering the same level of service, to the degree possible, that the community expects.

Requests for Information
This financial report is designed to provide a general overview of the City of Hermosa Beach’s finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report or requests for additional financial information should be addressed to the Office of the Finance Director, 1315 Valley Drive, Hermosa Beach, CA 90254. 134

BASIC FINANCIAL STATEMENTS
17 135

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
18 136
Primary
Government
Governmental
Activities
ASSETS
Current assets:

Cash and investments 52,998,216 $
Accounts receivable 3,383,900
Property taxes receivable, net 869,135
Reimbursable grants receivable 363,431
Interest receivable on investments 27,807
Other assets 1,145,009
Total current assets 58,787,498
Noncurrent assets:

OPEB net asset 729,118
Capital assets:

Non-depreciable 28,433,926
Depreciable, net 36,711,321
Total capital assets 65,145,247
Total noncurrent assets 65,874,365
Total assets 124,661,863

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 10,031,616 OPEB related deferred outflows of resources 2,102,063
Total deferred outflows of resources 12,133,679

CITY OF HERMOSA BEACH
Statement of Net Position
June 30, 2021
See accompanying notes to the basic financial statements. 19 137
Primary
Government
Governmental
Activities

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 1,782,634
Accrued salaries and benefits payable 828,178
Refundable deposits 355,218
Unearned revenue 53,353
Interest payable 55,088
Workers' compensation claims payable - due within one year 876,000 General liability claims payable - due within one year 414,000 Compensated absences - due within one year 1,145,247
Long-term debt - due within one year 552,105
Total current liabilities 6,061,823
Noncurrent liabilities:

Workers' compensation claims payable - due in more than one year 4,127,237 General liability claims payable - due in more than one year 951,669 Compensated absences - due in more than one year 1,818,884 Long-term debt 9,168,953
Aggregate net pension liability 51,477,782
Total noncurrent liabilities 67,544,525
Total liabilities 73,606,348

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 3,107,382 Total deferred inflows of resources 3,107,382

NET POSITION
Net investment in capital assets 65,145,247
Restricted for:

Capital projects 1,955,262
Street and sewer purposes 2,096,023
Transportation purposes 2,650,724
Public works 212,106
Public safety 1,008,794
Cultural and recreation 445,898
Undergrounding districts 7,834
Total restricted 8,376,641
Unrestricted (Deficit) (13,440,076)
Total net position $ 60,081,812

CITY OF HERMOSA BEACH
Statement of Net Position (Continued)
June 30, 2021
See accompanying notes to the basic financial statements. 20 138
Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

Legislative and legal 1,868,411 $ - $ - $ - $ - $
General government 6,183,616 650,066 298,085 391 948,542 Public safety 26,942,447 4,602,983 215,415 - 4,818,398
Community development 2,725,596 1,494,412 - - 1,494,412 Cultural and recreation 1,571,300 849,247 - 18,582 867,829 Public works 7,272,166 1,578,604 2,126,533 26,844 3,731,981 Interest and fiscal charges 400,465 - - - -
Total governmental activities 46,964,001 $ 9,175,312 $ 2,640,033 $ 45,817 $ 11,861,162 $

CITY OF HERMOSA BEACH
Statement of Activities
For the Year Ended June 30, 2021
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements. 21 139
Net (expense)
Revenue and
Changes in
Net Position
Primary Government:

Governmental activities:

Legislative and legal $ (1,868,411)
General government (5,235,074)
Public safety (22,124,049)
Community development (1,231,184)
Cultural and recreation (703,471)
Public works (3,540,185)
Interest and fiscal charges (400,465)
Total governmental activities (35,102,839)
General revenues:

Taxes:

Property taxes 20,966,460
Sales taxes 3,192,853
Real property transfer tax 453,596
Franchise fees 721,090
Transient occupancy tax 2,552,964
Business license 1,065,762
Utility users tax 2,171,538
½ cent sales tax for public safety 261,051
Other taxes 7,902
Total taxes 31,393,216
Grants and contributions not restricted to specific programs 2,490,562 Miscellaneous 745,148
Total general revenues 34,628,926
Change in net position (473,913)
Net position - beginning of year 60,555,725
Net position - end of year 60,081,812 $
Functions/Programs

CITY OF HERMOSA BEACH
Statement of Activities (Continued)
For the Year Ended June 30, 2021
See accompanying notes to the basic financial statements. 22 140

FUND FINANCIAL STATEMENTS
Governmental Fund Financial Statements
Proprietary Fund Financial Statements
Fiduciary Fund Financial Statements
23 141

GOVERNMENTAL FUND

FINANCIAL STATEMENTS
The Governmental Funds of the City are outlined below:

General Fund - The General Fund accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government which are not accounted for in the other funds. In Hermosa Beach, these services include general government, safety, community development, culture and recreation and public works.

FEMA Special Revenue Fund - This fund is used to account for emergency response related expenditures reimbursed by the Federal Emergency Management Agency (FEMA).

Capital Improvement Capital Projects Fund - Funds set aside for capital improvement projects.

Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds. 24 142
Capital
FEMA Improvements
Special Capital Nonmajor
Revenue Projects Governmental
General Fund Fund Funds Total
Cash and investments 17,676,818 $ - $ 7,877,739 $ 14,571,049 $ 40,125,606 $ Accounts receivable 2,901,534 - - 482,300 3,383,834
Property taxes receivable, net 841,551 - - 27,584 869,135 Reimbursable grants receivable - - - 363,431 363,431
Interest receivable on investments 13,085 - 6,172 8,550 27,807 Other assets 1,124,692 - - 18,517 1,143,209
Due form other funds 233,075 - 785,889 - 1,018,964
Total assets $ 22,790,755 - $ 8,669,800 $ 15,471,431 $ 46,931,986 $ Liabilities:

Accounts payable and accrued liabilities 1,204,272 $ 32,952 $ 115,549 $ 301,773 $ 1,654,546 $ Accrued wages and benefits payable 762,472 1,801 3,922 42,395 810,590 Refundable deposits 355,218 - - - 355,218
Unearned revenues 53,353 - - - 53,353
Due to other funds - 785,889 - 233,075 1,018,964
Compensated absences,
due within one year 76,500 - - 235 76,735
Total liabilities 2,451,815 820,642 119,471 577,478 3,969,406 Deferred Inflows of Resources:

Unavailable revenue 841,551 - - 206,674 1,048,225
Total deferred inflows of resources 841,551 - - 206,674 1,048,225 Fund Balances:

Nonspendable 560,718 - - 15,179 575,897
Restricted 437,326 - - 9,989,766 10,427,092
Committed 1,995,135 - - 2,592,712 4,587,847
Assigned 10,669,958 - 8,550,329 2,096,023 21,316,310
Unassigned 5,834,252 (820,642) - (6,401) 5,007,209
Total fund balances 19,497,389 (820,642) 8,550,329 14,687,279 41,914,355 Total liabilities, deferred inflows
of resources and fund balances $ 22,790,755 - $ 8,669,800 $ 15,471,431 $ 46,931,986 $ June 30, 2021
Major Funds
ASSETS
,

INFLOWS OF RESOURCES, AND

FUND BALANCES

CITY OF HERMOSA BEACH
Balance Sheet
Governmental Funds
See accompanying notes to the basic financial statements. 25 143
Total Fund Balances - Total Governmental Funds $ 41,914,355 Nondepreciable, net of Internal Service Fund of $365,074 28,068,852 $ Depreciable, net of Internal Service Fund of $3,176,233 33,535,088 Total capital assets 61,603,940
Insurance Fund 1,103,110
Equipment Replacement Fund 8,793,561
Total Internal Service Funds 9,896,671
1,048,225
Lease revenue bonds and premium (9,721,058)
Interest payable (55,088)
(12,659,012) (2,882,866)
Pension related deferred outflows of resources 10,031,616 Pension related deferred inflows of resources (3,107,382) (51,477,782)
OPEB related deferred outflows of resources 2,102,063
729,118
Net position of governmental activities $ 60,081,812

CITY OF HERMOSA BEACH
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2021
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

Deferred amounts relates to pension not available for current expenditures and are not reported in the governmental fund financial statements:

Net pension liability is not due and payable in the current period and therefore is not reported in the governmental funds.

Deferred amounts relates to other postemployment benefits not available for current expenditures and are not reported in the governmental fund financial statements:

Net OPEB asset is not due and payable in the current period and therefore is not reported in the governmental funds.

Capital assets used in governmental activities were not current financial resources.

Therefore, they were not reported in the Governmental Funds Balance Sheet.

Internal Service Funds were used by management to charge the costs of certain activities, such as insurance and equipment replacement to individual funds. The assets and liabilities of the Internal Service Funds were included in the governmental activities in the Government-wide Statement of Net Position.

Revenues in the Government-wide Statement of Activities that do not provide current financial resources and are not reported as revenue in the governmental funds.

Long-term liabilities are not due and payable in the current period and accordingly are not reported as fund liabilities. All liabilities, both current and long-term, are reported in the Statement of Net Position:

Compensated absences, net of $4,530 reported in Internal Service fund and $76,735 reported in accrued payroll
See accompanying notes to the basic financial statements. 26 144
Capital
FEMA Improvements
Special Capital Nonmajor
Revenue Projects Governmental
General Fund Fund Funds Total
REVENUES:

Property taxes 20,507,313 $ - $ - $ 461,090 $ 20,968,403 $ Other taxes 9,718,854 - - 2,253,485 11,972,339
Licenses and permits 904,362 - - - 904,362
Fines and forfeitures 2,129,829 - - 3,774 2,133,603
Use of money and property 515,241 - - 1,027,330 1,542,571 Intergovernmental 101,955 - - 1,222,208 1,324,163
Charges for services 6,052,751 - - 1,490,965 7,543,716
Miscellaneous 167,815 - 1,350 26,973 196,138
Interest earned on investments (46,868) - 25,494 31,663 10,289 Total revenues - 40,051,252 26,844 6,517,488 46,595,584 EXPENDITURES:

Current:

Legislative and legal 1,474,436 - - - 1,474,436
General government 4,166,334 571,587 53,167 91,901 4,882,989 Public safety 21,612,013 - 379,716 163,806 22,155,535
Community development 2,062,104 - - 115,686 2,177,790
Culture and recreation 1,326,493 - - 12,200 1,338,693
Public works 5,277,781 - - 1,303,554 6,581,335
Capital outlay 46,545 - 313,175 493,810 853,530
Debt service:

Interest and fiscal charges - - - 491,542 491,542
Cost of issuance - - - 229,987 229,987
Total expenditures 571,587 35,965,706 746,058 2,902,486 40,185,837

REVENUES OVER (UNDER)
EXPENDITURES (571,587) 4,085,546 (719,214) 3,615,002 6,409,747

OTHER FINANCING
SOURCES (USES):

Transfers in 3,396,606 - - 1,107,636 4,504,242
Transfers out (1,107,636) - - (3,396,606) (4,504,242)
Total other financing
sources (uses) - 2,288,970 - (2,288,970) -
NET CHANGE IN FUND BALANCE (571,587) 6,374,516 (719,214) 1,326,032 6,409,747 Fund balances, beginning of year,
as restated 13,122,873 (249,055) 9,269,543 13,361,247 35,504,608 Fund balances, end of year 19,497,389 $ (820,642) $ 8,550,329 $ 14,687,279 $ 41,914,355 $ Major Funds

CITY OF HERMOSA BEACH
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2021
See accompanying notes to the basic financial statements. 27 145
Net Change in Fund Balances - Total Governmental Funds $ 6,409,747 Governmental activities in the Statement of Activities were reported differently because:

Total capital outlay expenditures reported in governmental funds 853,530 $ Less: repair and maintenance expenditures (104,202)
Total capital outlay 749,328
455
Total depreciation reported in Government-wide Statement of Activities (2,863,615) Less: depreciation reported in the Internal Service Fund 639,550 Total (2,224,065)
(313,251)
(2,983,522)
449,969
(1,391,325)
320,897
(1,492,146)
Change in net position of governmental activities $ (473,913) The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position.

Internal Service Funds are used by management to charge the costs of certain activities, such as insurance and equipment replacement, to individual funds. The net revenue of the Internal Service Funds is reported in governmental activities.

CITY OF HERMOSA BEACH
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2021
Governmental Funds report capital outlay as expenditures. However, in the Government-wide Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below.

The net effect on disposal of capital assets.

Depreciation expense of capital assets is reported in the Government-wide Statement of Activities, but Earned but unavailable revenues reported in the governmental funds balance sheet as deferred inflows of resources should be recognized in the Government-wide Statement of Activities as revenue regardless of availability.

Certain pension expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Certain other postemployment benefit expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds.

Compensated absences were reported in the Government-wide Statement of Activities, but they did not require the use of current financial resources. Therefore, compensated absences were not reported as expenditures in the governmental funds.

See accompanying notes to the basic financial statements. 28 146

PROPRIETARY FUND

FINANCIAL STATEMENTS
Internal Service Funds - To account for the costs associated with the City's insurance and for funding equipment replacement.
29 147
This page intentionally left blank.
30 148
Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 12,872,610
Account receivables 66
Other assets 1,800
Total current assets 12,874,476
Noncurrent assets:

Nondepreciable capital assets 365,074
Depreciable capital assets, net of accumulated depreciation 3,176,233 Total noncurrent assets 3,541,307
Total assets 16,415,783

LIABILITIES
Current liabilities:

Accounts payable 128,088
Accrued wages and benefits payable 17,588
Workers' compensation claims payable - due within one year 876,000 General liability claims payable - due within one year 414,000 Compensated absences - due within one year 4,530
Total current liabilities 1,440,206
Long-term liabilities:

Workers' compensation claims payable - due in more than one year 4,127,237 General liability claims payable - due in more than one year 951,669 Total long-term liabilities 5,078,906
Total liabilities 6,519,112

NET POSITION
Net investment in capital assets 3,541,307
Unrestricted 6,355,364
Total net position $ 9,896,671

CITY OF HERMOSA BEACH
Statement of Net Position
Proprietary Funds
June 30, 2021
See accompanying notes to the basic financial statements. 31 149
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:

Charges for services 4,706,340 $
Miscellaneous revenue 33,757
Total operating revenues 4,740,097
OPERATING EXPENSES:

Salaries and wages 368,407
Contract services 2,197,994
Supplies 311,057
Claims expense 2,716,103
Depreciation 639,550
Total operating expenses 6,233,111
OPERATING INCOME (1,493,014)
NON-OPERATING REVENUES (EXPENSES):

Gain on disposal of capital assets 868
Total non-operating revenues (expenses) 868
Change in net position (1,492,146)
Net position, beginning of year 11,388,817
Net position, end of year 9,896,671 $

CITY OF HERMOSA BEACH
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2021
See accompanying notes to the basic financial statements. 32 150
Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received for services from other funds 4,706,340 $ Cash received from insurance recovery 30,007
Cash payments to suppliers for goods and services (2,716,827) Cash payments to employees for services (342,056)
Cash payments for insurance premiums and claims (2,257,858) Net cash provided (used by) operating activities (580,394) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (703,304)
Proceeds from sale of capital assets 1,322
Net cash provided (used by) capital and related financing activities (701,982) Net increase (decrease) in cash and cash equivalents (1,282,376) Cash and equivalents, beginning of year 14,154,986
Cash and equivalents, end of year 12,872,610 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (1,493,014) $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 639,550
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable 4,046
Increase (decrease) in accounts payable (177,069)
Increase (decrease) in accrued wages and benefits payable (5,077) Increase (decrease) in workers' compensation claims payable 325,905 Increase (decrease) in general liability claims payable 146,269 Increase (decrease) in compensated absences (21,004)
Total adjustments 912,620
Net cash provided (used) by operating activities $ (580,394)

CITY OF HERMOSA BEACH
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2021
See accompanying notes to the basic financial statements. 33 151
This page intentionally left blank.
34 152

FIDUCIARY FUND

FINANCIAL STATEMENTS
Custodial Funds- are used to account for assets held by the City in the capacity of agent for individuals. Custodial Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. The Custodial Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 35 153
This page intentionally left blank.
36 154
Custodial
Funds
ASSETS
Cash and investments 340,077 $
Interest receivable 144
Other receivable 1,814
Total assets $ 342,035

LIABILITIES
Assessment:

Installment account $ 329,035
Reserve requirement 13,000
Total Liabilities $ 342,035

CITY OF HERMOSA BEACH
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2021
See accompanying notes to the basic financial statements. 37 155
This page intentionally left blank.
38 156

NOTES TO THE BASIC

FINANCIAL STATEMENTS
39 157
This page intentionally left blank.
40 158
City of Hermosa Beach
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Page
Note 1 – Summary of Significant Accounting Policies .............................................................................................. 43 A. Financial Reporting Entity ........................................................................................................................... 43 B. Basis of Accounting and Measurement Focus .......................................................................................... 44 C. Cash and Investments ................................................................................................................................... 46 D. Fair Value Measurement ..............................................................................................................................46 E. Property Taxes Receivable .......................................................................................................................... 47 F. Interfund Transactions .................................................................................................................................. 47 G. Capital Assets ................................................................................................................................................ 47 H. Unearned and Unavailable Revenue ........................................................................................................... 48 I. Claims Payable .............................................................................................................................................. 48 J. Compensated Absences Payable ................................................................................................................. 48 K. Pensions .......................................................................................................................................................... 48 L. Other Postemployment Benefits (“OPEB”) .............................................................................................. 49 M. Net Position .................................................................................................................................................... 49 N. Fund Balances ................................................................................................................................................ 49 O. Spending Policy ............................................................................................................................................. 50 P. Use of Estimates ............................................................................................................................................ 51 Q. Accounting Changes ..................................................................................................................................... 51 Note 2 – Cash and Investments ...................................................................................................................................... 52 A. Deposits .......................................................................................................................................................... 52 B. Investments ..................................................................................................................................................... 53 C. Investment in Los Angeles County Investment Pool ............................................................................... 53 D. Fair Value Measurement ..............................................................................................................................54 E. Risk Disclosures ............................................................................................................................................ 54 Note 3 – Receivables .......................................................................................................................................................... 55 A. Government-Wide Financial Statements ................................................................................................... 55 B. Fund Financial Statements ........................................................................................................................... 55 Note 4 – Lease Revenues .................................................................................................................................................. 56 Note 5 – Interfund Transactions .................................................................................................................................... 57 Note 6 – Capital Assets ..................................................................................................................................................... 59 Note 7 – Long-Term Liabilities ...................................................................................................................................... 60 Note 8 – Risk Management ............................................................................................................................................. 60 Note 9 – Defined Benefit Pension Plans ........................................................................................................................ 62 Note 10 – Other Postemployment Benefit Plan .......................................................................................................... 71 Note 11 – Classification of Fund Balances ................................................................................................................... 75 41 159
City of Hermosa Beach
Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2021
Page
Note 12 – Non-City Obligations ....................................................................................................................................... 76 Note 13 – Commitments and Contingencies ................................................................................................................. 77 A. Commitments ................................................................................................................................................. 77 B. Contingencies ................................................................................................................................................. 77 C. Grants .............................................................................................................................................................. 77 D. Ongoing Operations ...................................................................................................................................... 77 Note 14 – Fund Balance and Net Position Restatement ............................................................................................. 78 Note 15 – Subsequent Events ............................................................................................................................................ 78 42 160
City of Hermosa Beach
Notes to the Basic Financial Statements
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Hermosa Beach, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:

A. Financial Reporting Entity
The City was incorporated on January 14, 1907, under the General Laws of the State of California. The City operates under a Council-Manager form of government and provides the following services: public safety (police, crossing guards and fire), maintenance and construction of public improvements, cultural, recreation, community development (planning and zoning), and general administrative services.

The basic financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization’s governing body and either the City is able to impose its will on that organization or there is a potential for the organization to provide financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable for an organization if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statement to be misleading or incomplete. Blended component units, although legally separate entities, are in substance, part of the City’s operations and data from these units are combined with data of the City.

Management determined that the following entities should be reported as blended component units based on the criteria above. Each blended component unit has a June 30 year-end, has a governing board that is substantially the same as the City’s, there is a financial benefit or burden relationship between the City and the blended component unit, and the City is financially accountable for each of the blended component units.

Hermosa Beach Street Lighting and Landscaping District – The Hermosa Beach Street Lighting and Landscaping Assessment District was created for street lighting/median maintenance purposes pursuant to Street and Highway Code Sections 22500-22679.

Lower Pier Avenue Assessment District – The Lower Pier Avenue Assessment District was created for improvement of the assessment district in November 1997 pursuant to Street and Highway Code Section 10000.

Myrtle Avenue Underground Utility District – The Myrtle Avenue Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000.

Loma Drive Underground Utility District – The Loma Drive Underground Utility District was created in October 1999 pursuant to Street and Highway Code Section 10000.

Beach Drive Assessment District – The Beach Drive Assessment District was created in July 2004 pursuant to Street and Highway Code Section 10000.

Bayview Drive Underground District – The Bayview Drive Underground District was created in February 2005 pursuant to Street and Highway Code Section 10000.

Hermosa Beach Public Financing Authority – The Hermosa Beach Public Financing Authority was created on July 14, 2015 to authorize the issuance and sale of 2015 Lease Revenue Bonds.

The above component units do not issue separate financial statements. 43 161
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

The Statement of Net Position reports separate sections for Deferred Outflows of Resources, and Deferred Inflows of Resources, when applicable.

Deferred Outflows of Resources represent outflows of resources (consumption of net position) that apply to future periods and that, therefore, will not be recognized as an expense until that time.

Deferred Inflows of Resources represent inflows of resources (acquisition of net position) that apply to future periods and that, therefore, are not recognized as revenue until that time.

Government-Wide Financial Statements
The government-wide financial statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities, including capital assets, as well as infrastructure assets, and long-term liabilities, are included in the accompanying statement of net position. The statement of activities presents changes in net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized in the period in which the liability is incurred. Fiduciary activities of the City are not included in these statements.

Certain types of transactions are reported as program revenues for the City in three categories:
 Charges for services
 Operating grants and contributions
 Capital grants and contributions
Certain eliminations have been made in regards to interfund activities, payables and receivables. All internal balances in the statement of net position have been eliminated. In the statement of activities, internal service fund transactions have been included in the governmental activities. The following interfund activities have been eliminated:
 Due from and to other funds, which are short-term loans within the primary government  Transfers in and out, which are flows of assets between funds without the requirement for repayment 44 162
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements
All governmental funds are accounted for on a spending or “current financial resources” measurement focus and the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the balance sheet. The statement of revenues, expenditures and changes in fund balances presents increases (revenue and other financing sources) and decreases (expenditures and other financing uses) in fund balances.

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period.

Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, intergovernmental revenues and other taxes. Sales tax is received on a monthly basis. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

Reconciliations of the fund financial statements to the government-wide financial statements are provided to explain the differences.

The City reports the following major governmental funds:

General Fund – The General Fund is the City’s principal operating fund. It accounts for all revenues and expenditures used to finance the traditional services associated with a municipal government except those required to be accounted for in another fund.

FEMA Special Revenue Fund – This fund is used to account for emergency response related expenditures reimbursed by the Federal Emergency Management Agency.

Capital Improvement Capital Projects Fund – This fund is set aside for capital improvement projects.

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.
45 163
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses.

Internal service funds are the only funds presented in the proprietary fund financial statements. However, internal service balances and activities have been combined with the governmental activities in the governmentwide financial statements. The internal service funds are used to account for equipment replacement and insurance provided to other City departments on a cost-reimbursement basis.

Fiduciary Fund Financial Statements
The City’s fiduciary funds represent agency funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The fiduciary funds are accounted for using the accrual basis of accounting. The City maintains seven fiduciary funds which represent assets resulting from assessments to the property owners in four utility undergrounding districts, two reserve funds for utility undergrounding districts and a downtown improvement district (Lower Pier Avenue). The assets are used to repay bonds secured by the private property in the district.

C. Cash and Investments
The City’s cash and cash equivalents are comprised of cash on hand, demand deposits, and short-term investments with original maturity of three months or less from the date of acquisition. All cash and investments of proprietary funds are held in the City’s investment pool. These cash pools have the general characteristics of a demand deposit account, therefore, all cash and investments in the proprietary funds are considered cash and cash equivalents for statement of cash flows purposes.

D. Fair Value Measurement
Investments, unless otherwise specified, recorded at fair value in the financial statements, are categorized based upon the level of judgment associated with the inputs used to measure their fair value.

The three levels of the fair value measurement hierarchy are described below:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date. 46 164
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) E. Property Taxes Receivable
Property taxes attach as an enforceable lien on property as of January 1 each year. The property tax year runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year. Taxes are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (the “County”) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized, net of estimated refunds and uncollectible amounts, in the period for which the taxes are levied. The City recognizes available taxes, or those collected within 60 days, as revenue at June 30.

The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed valuation no more than 2% per year. The City receives a share of this basic levy, or .203 cents of each $1.00, proportionate to what it received during the years 1976 to 1978.

F. Interfund Transactions
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as “due from/to other funds” (i.e., current portion of interfund loans).

G. Capital Assets
In the government-wide financial statements, capital assets, which include land, buildings, improvements, equipment, furniture, and infrastructure assets (e.g., roads, sidewalks, and similar items), are recorded at historical cost or estimated historical if purchased or constructed. Donated capital assets, donated works of art or similar items, and capital assets received in a service concession arrangement are reported at acquisition value on the date donated rather than fair value. City policy has set the capitalization threshold for reporting capital assets at $5,000 and infrastructure at $100,000.

The City defines infrastructure as the basic physical assets that allow the City to function. The assets include streets, sewers and storm drains, parking meters and monuments. Each major infrastructure system can be divided into subsystems. For example, the street system can be subdivided into pavement, curb and gutters, sidewalks, medians, streetlights and landscaping. These subsystems were not delineated in the basic financial statements. The Finance Department, with the assistance of the appropriate operating department, maintains information regarding the subsystems.

Interest incurred during capital assets construction, if any, is capitalized for the proprietary funds as part of the asset cost.

For all infrastructure systems, the City elected to use the “Basic Approach” and depreciate over its estimated useful life.

Capital assets used in operations are depreciated over their estimated useful lives using the straight-line method.

The lives used for depreciation purposes are as follows:

Buildings 50 years
Improvements other than buildings 20 years
Machinery and equipment 3-20 years
Infrastructure 15-50 years
47 165
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) H. Unearned and Unavailable Revenue
In the government-wide and fund financial statements, unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are cell phone site license lease payments received in advance, prepaid charges for services, facility rentals paid in advance, and quarterly encroachment fees, and advance registration for recreation classes.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports an unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available.

I. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities.

J. Compensated Absences Payable
City employees have vested interest in varying levels of vacation, sick leave and compensatory time based on their length of employment. It is the policy of the City to pay all accumulated vacation pay and all or a portion of sick pay when an employee retires or terminates. The long-term amount is included as a liability in the governmental activities of the government-wide financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. All of the liability for compensated absences applicable to proprietary funds is reported in those funds. The City’s goal is to accumulate 25% of the funding for the accrued liability for compensated absences in the assigned fund balance for compensated absences. Compensated absences are liquidated principally by the General Fund.

K. Pensions
For purposes of measuring the aggregate net pension liability, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the plans and additions to/deductions from the plans’ fiduciary net position have been determined on the same basis as they are reported by the plans (Note 9). For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with benefit terms. Investments are reported at fair value.

The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2018
Measurement Date June 30, 2019
Measurement Period July 1, 2018 to June 30, 2019
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years.

All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period. 48 166
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) L. Other Postemployment Benefits (“OPEB”)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the plan (Note 10). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value.

The following timeframes are used for OPEB reporting:

OPEB
Valuation Date June 30, 2019
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. The first amortized amounts are recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense. The amortization period differs depending on the source of gain or loss. The difference between projected and actual earnings is amortized on a straight-line basis over 5 years. All other amounts are amortized on a straight-line basis over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) at the beginning of the measurement period.

M. Net Position
In the government-wide financial statements and proprietary fund financial statements, net position is classified as follows:

Investment in Capital Assets - This component of net position consists of capital assets, net of accumulated depreciation.

Restricted - This component of net position consists of restricted assets reduced by liabilities and deferred inflows of resources related to those assets.

Unrestricted - This component of net position is the amount of the assets, deferred outflows of resources, liabilities, and deferred inflows of resources that are not included in the determination of net investment in capital assets or the restricted component of net position.

N. Fund Balances
In the governmental fund financial statements, fund balances are classified as follows:

Nonspendable – Nonspendable fund balances include amounts that cannot be spent because they are not in a spendable form, such as inventory or prepaid items, or because resources legally or contractually must remain intact.

Restricted – Restricted fund balances are the portion of fund balance that have externally enforceable limitations on their usage through legislation or limitations imposed by creditors, grantor, laws and regulations of other governments or enabling legislation.
49 167
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) N. Fund Balances (Continued)
Committed – Committed fund balances are self-imposed limitations by the highest level of decision-making authority, namely the City Council, prior to the end of the reporting period. City Council adoption of a resolution is required to commit resources or to rescind the commitment.

Assigned – Assigned fund balances are limitations imposed by management based on the intended use of the funds. Modifications or rescissions of the constraints can be removed by the same type of action that limited the use of the funds. Assignment of resources can be done by the highest level of decision making or by a committee or official designated for that purpose. The City Council has authorized the Finance Director for that purpose.

Unassigned – Unassigned fund balances represent the residual net resources in excess of the other classifications. The general fund is the only fund that reports a positive unassigned fund balance amount. In other governmental funds, it is not appropriate to report a positive unassigned fund balance amount. However, in governmental fund other than general fund, if expenditures incurred for specific purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may be necessary to report a negative unassigned fund balance in that fund.

O. Spending Policy
Government – Wide Financial Statements and Proprietary Fund Financial Statements When expenses are incurred for purposes for which both restricted and unrestricted components of net position are available, the City’s policy is to apply restricted component of net position first, then the unrestricted component of net position as needed.

Governmental Fund Financial Statements
When expenditures are incurred for purposes for which restricted, committed, assigned and unassigned fund balances are all available, the City’s policy is to use these balances in the following order unless an ordinance specifies the fund balance to be used: restricted, committed, assigned and unassigned.

Long-term financial planning
The City Council’s adopted financial policies relating to long-term financial planning for specific purposes are as follows:

Insurance Fund - Goal of $3,000,000 in net position for claims reserves and catastrophic losses.

Equipment Replacement Fund - Goal of net position equal to the accumulated amount calculated for all equipment, based on replacement cost and useful life of equipment.

Contingency - Goal equal to 16% of the General Fund appropriations for economic uncertainties, unforeseen emergencies.

Compensated Absences - Goal equal to 25% funding for accrued liabilities for employee vacation, sick and compensatory time.
50 168
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 1 – Summary of Significant Accounting Policies (Continued) O. Spending Policy (Continued)
Long-term financial planning (Continued)
The City also has a financial policy of transferring funds unspent in the General Fund at year-end to the Insurance Fund, Equipment Replacement Fund, and Capital Improvement Capital Projects Fund and to add to Contingency funds. The City Council makes changes as necessary to the year-end transfer, depending on the equity in the funds or based on other needs.

P. Use of Estimates
The preparation of the basic financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Q. Accounting Changes
The City adopted Statement on Governmental Accounting Standards (GASB Statement) No. 84, Fiduciary Activities and GASB Statement No. 90 Majority Equity Interest. Neither standard significantly impacted the City.

The City implemented Statement on Governmental Accounting Standards (GASB Statement) No. 98, The Comprehensive Financial Report, which establishes the term annual comprehensive financial report and its acronym ACFR. The new term and acronym replace instances of comprehensive annual financial report and its acronym in generally accepted accounting principles for state and local governments. 51 169
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 – Cash and Investments
The City maintains a cash and investment pool, which includes cash balances and authorized investments of all funds.

The City had the following cash and investments at June 30, 2021:

Government-Wide
Statement of
Net Position Statement of
Governmental Fiduciary
Activities Net Position Total
Cash and investments $ 52,998,216 $ 340,077 $ 53,338,293 The City’s cash and investments at June 30, 2021 in more detail:

Cash and cash equivalents:

Demand deposits $ 17,302,507
Petty cash 2,000
Total cash and cash equivalents 17,304,507
Investments:

Local Agency Investment Fund 10,307,735
Los Angeles County Pooled Investments Funds 16,799,509
US Government Treasuries 1,481,365
Negotiable Certificates of Deposit 7,445,177
Total investments 36,033,786
Total cash and investments $ 53,338,293
A. Deposits
The carrying amounts of the City’s demand deposits were $17,267,946 at June 30, 2021. Bank balances at that date were $18,321,014, the total amount of which was collateralized or insured with accounts held by the pledging financial institutions in the City’s name as discussed below.

The California Government Code requires California banks and savings and loan associations to secure the City’s cash deposits by pledging securities as collateral. This Code states that collateral pledged in this manner shall have the effect of perfecting a security interest in such collateral superior to those of a general creditor.

Thus, collateral for cash deposits is considered to be held in the City’s name.

The fair value of pledged securities must equal at least 110% of the City’s cash deposits. California law also allows institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the City’s total cash deposits. The City may waive collateral requirements for cash deposits, which are fully insured up to $250,000 by the Federal Deposit Insurance Corporation (“FDIC”). The City, however, has not waived the collateralization requirements.

The City follows the practice of pooling cash and investments of all funds, except for funds required to be held by fiscal agents under the provisions of bond indentures, if applicable. Interest income earned on pooled cash and investments is allocated on an accounting period basis to the various funds based on the period-end cash and investment balances, however, interest is not allocated to funds created to advance costs for utility undergrounding districts, reimbursable grant funds or internal service funds. 52 170
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 – Cash and Investments (Continued)
B. Investments
Under the provisions of the City’s investment policy, the City’s investments are limited to those authorized by the California Government Code, except as follows:
 There is no maximum amount or maximum maturity period of the City’s idle funds that may be invested with the Local Agency Investment Fund (“LAIF”) or the Los Angeles County Pooled Investment Fund (“LACPIF”)
 Negotiable Certificates of Deposit shall not exceed 30 percent of the City’s surplus money and mature in 5 years or less.
 Medium-term corporate notes shall have a Moody or Standard & Poor’s rating of at least AA and mature in 5 years or less
The City is a participant in LAIF, which is regulated by California Government Code Section 16429 under the oversight of the Treasurer of the State of California. The City’s investments with LAIF at June 30, 2020 included a portion of the pool funds invested in Structured Notes and Asset-Backed Securities, which included the following:

Structured Notes: debt securities (other than asset-backed securities) whose cash flow characteristics (coupon rate, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Asset-Backed Securities: generally, mortgage-backed securities that entitle their purchasers to receive a share of the cash flows from a pool of assets such as principal and interest repayments from a pool of mortgages (for example, collateralized mortgage obligations), or credit card receivables.

As of June 30, 2021, the City had $10,307,735 invested in LAIF, which had invested 0.01% of the pool investment funds in Structured Notes and Asset-Backed Securities. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based upon the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio).

C. Investment in Los Angeles County Investment Pool
The City is a voluntary participant in the Los Angeles County Investment Pool pursuant to Government Code Section 53684. The cash flow needs of participants are monitored daily to ensure that sufficient liquidity is maintained to meet the needs of those participants. At the time deposits are made, the Los Angeles County Investment Pool’s Treasurer may require the depositing entity to provide annual cash flow projections or an anticipated withdrawal schedule for deposits in excess of $1 million. Projections are to be performed no less than semi-annually. In accordance with Government Code Section 27136, all requests for withdrawal of funds for the purpose of investing or depositing the funds elsewhere shall be evaluated to ensure the proposed withdrawal will not adversely affect the principal deposits of the other participants. As of June 30, 2021, the City had $16,799,509 invested in the Los Angeles County Investment Pool. 53 171
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 – Cash and Investments (Continued)
D. Fair Value Measurement
At June 30, 2021, investments are reported at fair value. The following table presents the fair value measurement of investments on a recurring basis and the levels within fair value hierarchy in which the fair value measurements fall at June 30, 2021:

Investment Type Value Level 1 Level 2 Uncategorized
Local Agency Investment Fund $ 10,307,735 $ - $ - $ 10,307,735 Los Angeles County Pooled
Investments Fund 16,799,509 - 16,799,509
US Government Treasuries 1,481,365 1,481,365 - -
Negotiable Certificates of Deposit 7,445,177 - 7,445,177 Total $ 36,033,786 $ 1,481,3654 $ - $ 34,552,421
E. Risk Disclosures
Interest Rate Risk - As a means of limiting its exposure to fair value losses arising from rising interest rates, the City’s investment policy limits investments to a maximum maturity of five years.

At June 30, 2021, the City had the following investment maturities:

Investment Maturities (in Years)
Investment Type Fair value Less than 1 1 to 2 2 to 3 3 to 4 4 to 5 Local Agency Investment Fund $ 10,307,735 $ 10,307,735 $ - $ - $ - $ - Los Angeles County Pooled
Investments Fund 16,799,509 16,799,509 - - - -
US Government Treasuries 1,481,365 - - - 1,481,365 -
Negotiable Certificates of Deposit 7,445,177 1,995,427 2,058,490 1,843,512 1,547,748 - Total $ 36,033,786 $ 29,102,671 $ 2,058,490 $ 1,843,512 $ 3,029,113 $ - Credit Risk – State law limits investments in commercial paper and corporate bonds to the top two ratings issued by nationally recognized statistical rating organizations. It is the City’s policy to limit its investments in these investment types to the top rating issued by Standard & Poor’s and Moody’s Investor Service. At June 30, 2021, the City’s credit risks, expressed on a percentage basis, were as follows:

Credit Quality Distribution for Securities
with Credit Exposure as a Percentage of Total Investments Moody's S&P's % of Investments
Credit Credit with Interest
Investment Type Rating Rating Rate Risk
Local Agency Investment Fund (LAIF) Not Rated Not Rated 28.61% Los Angeles County Pooled Investments Fund Not Rated Not Rated 46.62% US Government Treasuries Not Rated Not Rated 4.11%
Negotiable Certificates of Deposits Not Rated Not Rated 20.66% Total

100.00%
54 172
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 2 – Cash and Investments (Continued)
E. Risk Disclosures (Continued)
Custodial Risk – For deposits, custodial credit risk is the risk that, in the event of the failure of a depository financial institution, the City will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer), the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party.

Concentration of credit risk – The City’s investment policy does not allow for investments in any one institution that is in excess of 5% of the City’s total portfolio, except for LAIF and LACIPIF, where there is no limit. The City is in compliance with the investment policy related to the concentration of credit risk for the year ended June 30, 2021.

Note 3 - Receivables
A. Government-Wide Financial Statements
At June 30, 2021, the government-wide financial statements show the following receivables, net of allowances for uncollectible amounts, if any:

Government-Wide
Statement of
Net Position Statement of
Governmental Fiduciary
Activities Net Position Total
Accounts receivable $ 3,383,900 $ - $ 3,383,900
Property taxes receivable, net 869,135 - 869,135
Reimbursable grants receivable 363,431 - 363,431
Interest receivable on investments 27,807 144 27,951
Other receivables - 1,814 1,814
Total $ 4,644,273 $ 1,958 $ 4,646,231
B. Fund Financial Statements Receivables
Receivables consisted of amounts accrued in the ordinary course of operations. The total amount of receivables for each major and nonmajor funds in the aggregate as of June 30, 2021, were as follows:

Governmental funds:

General Fund $ 2,901,534
Nonmajor Funds 482,300
Total governmental funds 3,383,834
Total accounts receivable $ 3,383,834
55 173
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 3 – Receivables (Continued)
B. Fund Financial Statements (Continued)
Taxes Receivable
At June 30, 2021, the City had property taxes receivable, net of allowance for delinquent property taxes receivables, in the following major fund and nonmajor funds in the aggregate:

Allowance for Property
Property delinquent tax taxes, net
taxes receivables of allowance
Governmental Funds:

General Fund $ 1,316,221 $ (474,670) $ 841,551
Nonmajor funds 64,704 (37,120) 27,584
Total $ 1,380,925 $ (511,790) $ 869,135
Reimbursable Grants Receivable
Grants receivable consists of a variety of reimbursable grants from other agencies. The total amount of reimbursable grants receivable as of June 30, 2021 was as follows:

Governmental Funds:

Nonmajor Governmental Funds $ 363,431
Total reimbursable grants receivable $ 363,431
Note 4 – Lease Revenues
In February 2001, a 50-year lease for the retail space located in front of the North Pier Parking Structure was initiated. The City receives a monthly lease payment in the amount of $2,985. The lease includes a negotiated increase to the monthly lease payment to be calculated every 60 months based on the consumer price index. In February 2016, the lease was increased to $3,235.

In February 2004, the City entered into a 5-year lease agreement with Sprint, a cellular telephone company, for placement of an antenna on the North Pier Parking Structure. The lease includes a provision for 5 lease extensions with a 5-year term for each. In February 2009, the lease was extended through January 31, 2015. In February 2016, the lease was extended through January 31, 2020. In February 2020, the lease was extended through January 31, 2025. The City received a monthly lease payment in the amount of $3,398 to January 2021 and $3,500 from February 2021.

In June 2005, the City purchased property adjacent to City Hall that is used as a self - storage facility. The existing lease for the storage facility was transferred to the City as a condition of the sale. The original lease term was through January 31, 2009, and was extended beginning February 1, 2009 to April 30, 2015 through various amendments. In April 2015, the lease was amended to extend the term to April 30, 2020. In May 2020, the lease was extended through June 2025 and that lease can be terminated without cause at any time after July 2021 with one year of written notice to the City. The City receives a monthly lease payment in the amount of $20,000. 56 174
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 4 – Lease Revenues (Continued)
In February 2014, the City entered into a 5-year lease agreement with Verizon wireless, a cellular telephone company, for the placement of 12 panel antennas and 6 remote radio units at the Municipal Parking Facility. The annual lease rate is expected to increase at a rate of 3% with base monthly payment amount of $2,400. The City received a monthly lease payment in the amount of $2,782 February 2020 and $2,952 from March 2021.

All of the above leases are accounted for as operating leases by the City.

The future minimum rental revenues under these leases are as follows:

Year ending
June 30, Amounts
2022 $ 440,424
2023 384,262
2024 386,682
2025 303,600
2026 78,810
2027-2031 297,583
2032-2036 312,462
2037-2041 328,085
2042-2046 344,490
2047-2051 323,923
Total

$ 3,199,921
Lease revenue for the year ended June 30, 2021 was $387,461.

Note 5 – Interfund Transactions
Due From/To Other Funds – At June 30, 2021, the City had the following due from/to other funds:

Due From Other Funds
Due To Other Funds
General Capital
Fund Improvements Total

FEMA $ - $ 785,889 $ 785,889
Nonmajor Governmental funds 233,075 - 233,075

Total $ 233,075 $ 785,889 $ 1,018,964
The above amount resulted from the time lag between the dates that reimbursable expenditures occur and payments are received from other agencies.
57 175
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 5 – Interfund Transactions (Continued)
Transfers
During the year ended June 30, 2021, the City had the following transfers:

Transfers in

Nonmajor
General Governmental
Transfers out Fund Funds Total
General Fund $ - $ 1,107,636 $1,107,636
Nonmajor Governmental
Funds

3,396,606

-

3,396,606
Total $3,396,606 $ 1,107,636 $4,504,242
In general, transfers are used to 1) use unrestricted revenues collected in one fund to finance various programs accounted for in other funds in accordance with budgetary authorizations, and 2) to transfer to the General Fund to fund administration services.

General Fund transferred $816,634 to the 2015 Lease Revenue Bond Fund for debt service payment.

General Fund transferred $291,002 to Lighting /Landscaping Fund to cover deficit.

Nonmajor Governmental Funds transferred $396,606 for Lighting/Landscaping administration, street maintenance and traffic safety operations, parks maintenance allocation and agency administration. Sewer Fund transferred $3,000,000 to the General Fund to return Funds transferred in 2014-15. 58 176
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 6 – Capital Assets
The following is a summary of changes in capital assets for the governmental activities for the year ended June 30, 2021:

Balance Balance
July 1, 2020 Additions Deletions June 30, 2021
Capital assets not being depreciated:

Land $ 22,740,168 $ - $ - $ 22,740,168
Construction in progress 4,842,294 851,464 - 5,693,758
Total capital assets not being depreciated 27,582,462 851,464 - 28,433,926 Capital assets being depreciated:

Buildings and structures 13,619,166 - - 13,619,166
Improvements other than buildings 15,362,907 - - 15,362,907 Machinery and equipment 6,637,547 349,855 - 6,987,402
Vehicles 4,066,873 251,044 - 4,317,917
Infrastructure 55,081,405 - - 55,081,405
Total capital assets being depreciated 94,767,898 600,899 - 95,368,797 Less accumulated depreciation for:

Buildings and structures (5,973,191) (259,852) - (6,233,043) Improvements other than buildings (13,239,809) (225,769) - (13,465,578) Machinery and equipment (4,519,370) (500,906) - (5,020,276) Vehicles (2,272,499) (324,398) - (2,596,897)
Infrastructure (29,788,992) (1,552,690) - (31,341,682)
Total accumulated depreciation (55,793,861) (2,863,615) - (58,657,476) Total capital assets being depreciated, net 38,974,037 (2,262,716) - 36,711,321 Total governmental activities $ 66,556,499 $ (1,411,252) $ - $ 65,145,247 Depreciation expense was charged to functions/programs of governmental activities for the year ended June 30, 2021 as follows:

Legislative and legal $ 84,913
General government 281,213
Public safety 1,275,947
Community development 125,420
Culture and recreation 77,096
Public works 1,019,026
Total depreciation expense $ 2,863,615
59 177
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 7 – Long-Term Liabilities
Summary of changes in long-term liabilities for governmental activities for the year ended June 30, 2021 is as follows:

Classification
Balance Balance Due within Due in more
July 1, 2020 Additions Deletions June 30, 2021 One Year than One Year 2015 Lease revenue bond $ 9,890,000 $ - $ (9,890,000) $ - $ - $- Bonds Premium 157,508 - (157,508) - - -
2020 Lease revenue bond - 8,150,000 - 8,150,000 395,000 7,755,000 Bonds Premium - 1,571,058 - 1,571,058 157,105 1,413,953 Compensated absences 2,779,200 1,350,194 (1,165,263) 2,964,131 1,145,247 1,818,884 $ 12,826,708 $ 11,071,252 $ (11,212,771) $ 12,685,189 $ 1,697,352 $ 10,987,837

2020 Lease Revenue Bonds
In October 2020, the PFA issued $8,150,000 Hermosa Beach Public Financing Authority 2020 Lease Revenue Bonds to (i) refund and defease the 2015 Lease revenue bonds and (ii) pay the costs of issuing the 2020 Bonds.

Interest rate is 4% and is payable semiannually on May 1 and November 1 of each year, commencing May 1, 2021. Principal payments range from $395,000 to $715,000 commencing November 2021 through November 2035. The 2020 bonds are secured solely by the pledge revenues and certain funds held under the indenture. The 2020 bonds are not secured by a pledge of the taxing power of the City. Upon default, the payment in default will continue as an obligation of the City until the amount in default has been fully paid, and the City agrees to pay the same with interest thereon, from the date of default to the date of payment at the highest rate of interest on any Outstanding 2020 Bond. The outstanding balance at June 30, 2021 was $8,150,000.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 395,000 $ 330,528 $ 725,528
2023 415,000 310,200 725,200
2024 435,000 293,600 728,600
2025 450,000 276,200 726,200
2026 470,000 258,200 728,200
2027-2031 2,675,000 992,200 3,667,200
2032-2036 3,310,000 407,600 3,717,600
$ 8,150,000 $ 2,2868,528 $11,018,528

Note 8 – Risk Management
The City maintains an internal service fund to account for the City’s general liability and workers’ compensation claims, automobile, property, and unemployment insurance.

The City is self-insured for each general liability claim up to $250,000. The City is insured above the self-insured retention for general liability insurance coverage, up to a maximum of $20,000,000 per occurrence, as a member of the Independent Cities Risk Management Authority (“ICRMA”). 60 178
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 8 – Risk Management (Continued)
The City purchases workers’ compensation coverage through a self-insured program available through ICRMA. The City maintains a $500,000 self-insured retention limit and participates in a self-insured risk sharing pool through the ICRMA of coverage up to statutory limits.

ICRMA is a joint exercise of powers authority organized and operating pursuant to the California Government Code.

ICRMA was formed in 1980 pursuant to joint exercise of power agreements for insurance and risk management purposes, which, as amended, enable ICRMA to provide programs of risk sharing, insurance and risk management services in connection with liability, property, and workers’ compensation claims.

ICRMA’s annual budget is based on estimated actuarially determined member losses within the risk sharing layer, administrative expenses and excess insurance.

The City’s premiums to ICRMA in the amount of $974,140 for the fiscal year 2020-2021 are in accordance with formulas established by ICRMA. The City is liable for possible additional assessments and withdrawal costs under terms of the membership agreement; however, there has never been an additional assessment since the pool was formed.

The City has entered into contracts with third party administrators who supervise and administer the City’s general liability and workers’ compensation insurance program. Claim loss estimates are determined by the third party administrator based on the nature of an individual claim. The loss estimates include amounts for future compensation, medical, legal and administrative fees. The City also includes estimated claims incurred but not reported (“IBNR”) provided by an actuary. Reimbursement requests are submitted to the City on a monthly basis as claims are paid.

The workers’ compensation and general liability claims payable of $6,368,906 reported at June 30, 2021 includes the liability for claims in which it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated.

Changes in the City’s claims liability amounts were as follows:

Current Year Amounts
Beginning Claims and End Amounts Due in
of Year Changes in Claim of Year Due within more than
Liability Estimates Payments Liability One Year One Year Workers' Compensation

2018-2019 $5,098,252 $1,971,873 $(2,017,449) $5,052,676 $876,329 $4,176,347 2019-2020 5,052,676 723,384 (1,098,728) 4,677,332 809,160 3,868,172 2020-2021 4,677,332 1,174,836 (848,931) 5,003,237 876,000 4,127,237 General Liability
2018-2019 $1,040,438 $625,487 $(1,127,793) $538,132 $175,875 $362,257 2019-2020 538,132 1,438,676 (757,408) 1,219,400 456,359 763,041 2020-2021 1,219,400 531,990 (385,721) 1,365,669 414,000 951,669 Detailed financial information may be obtained from the ICRMA Program Administrator located at 18201 Von Karman, Suite 200, Irvine, CA 92612.
61 179
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans
The following is a summary of net pension liabilities, related deferred outflows and inflows of resources as of June 30, 2021 and pension expenses for the year then ended June 30, 2021:

Miscellaneous Safety Total
Deferred outflows of resources:

Pension contribution after measurement date $ 1,632,690 $ 3,339,197 $ 4,971,887 Difference between expected and actual experience 809,589 2,773,601 3,583,190 Adjustment due to differences in proportions 47,514 - 47,514 Difference between projected and actual
investment earnings 466,694 777,382 1,244,076
Difference between City contributions and
proportionate share of contributions - 184,949 184,949
Total deferred outflows of resources

$ 2,956,487 $ 7,075,129 $ 10,031,616
Aggregate Net pension liabilities:

Aggregate Net pension liabilities $ 15,710,118 $ 35,767,664 $ 51,477,782 Total net pension liabilities

$ 15,710,118 $ 35,767,664 $ 51,477,782
Deferred inflows of Resources:

Changes of assumptions $ 112,051 $ 119,143 $ 231,194
Adjustment due to differences in proportions 87,854 1,317,706 1,405,560 Difference between City contributions and
proportionate share of contributions 161,320 1,309,309 1,470,629 Total deferred inflows of Resources

$ 361,225 $ 2,746,157 $ 3,107,383
Pension expenses:

$ 2,633,614 $ 5,321,962 $ 7,955,576
General Information about the Pension Plan
Plan Description
The City contributes to the California Public Employees’ Retirement System (“CalPERS”), a cost-sharing multipleemployer defined benefit pension plan. CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. CalPERS acts as a common investment and administrative agent for participating public entities within the State of California. Benefit provisions and all other requirements are established by State statute and City ordinance. Copies of the CalPERS annual financial report may be obtained from their Executive Office located at 400 P Street, Sacramento, California 95814.

The City contracted with Los Angeles County for Fire Services (Fire District) on 12/30/2017. The City will continue to be responsible for paying the retirement costs for fire employees related to the value of past service benefits, referred to as the unfunded actuarial liability.
62 180
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Employees Covered by Benefit Terms
At June 30, 2021, the following employees were covered by the benefit terms:

Plans
Fire Tier 1 Fire Tier 2 Fire PEPRA Police Tier 1 Police Tier 2 Police PEPRA Active employees - - - 21 2 9
Transferred and terminated employees 12 1 3 4 2 5
Separated 4 1 1 4 2 3
Retired Employees and Beneficiaries 60 - - 93 2 1
Total 76 2 4 122 8 18

Plans
Misc. Tier 1 Misc. Tier 2 Misc. PEPRA
Active employees 31 16 63
Transferred and terminated employees 42 11 28
Separated 47 5 25
Retired Employees and Beneficiaries 146 1 -

Total 266 33 116

Benefit Provided
CalPERS provides retirement and disability benefits, annual cost-of-living adjustments, and death benefits to plan members and beneficiaries. Classic and PEPRA Safety CalPERS members become eligible for service retirement upon attainment of age 55 with at least 5 years of credited service. PEPRA miscellaneous members become eligible for service retirement upon attainment of age 62 with at least 5 years of service. The service retirement benefit is a monthly allowance equal to the product of the benefit factor, years of service, and final compensation. The final compensation is the monthly average of the member's highest 36 full-time equivalent monthly pay.

Following are the benefit provisions for each plan:
 Fire Tier 1: 3% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Fire Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Fire PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Police Tier 1: 3% (at age 50) of the average final 12 months compensation (effective prior to 7/1/11)  Police Tier 2: 2% (at age 50) of the average final 12 months compensation (effective 7/1/11)  Police Tier PEPRA: 2.7% (at age 57) of the average final 36 months compensation (effective 1/1/13)  Miscellaneous Tier 1: 2% (at age 55) of the average final 12 months compensation (effective prior to 7/1/11)  Miscellaneous Tier 2: 2% (at age 60) of the average final 12 months compensation (effective 7/1/11)  PEPRA Miscellaneous: 2% (at age 62) of the average final 36 months compensation (effective 1/1/13) 63 181
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
General Information about the Pension Plan (Continued)
Benefit Provided (Continued)
Participant is eligible for non-industrial disability retirement if becomes disabled and has at least 5 years of credited service. There is no special age requirement. The standard non-industrial disability retirement benefit is a monthly allowance equal to 1.8 percent of final compensation, multiplied by service. Industrial disability benefits are not offered to miscellaneous employees.

An employee's beneficiary may receive the basic death benefit if the employee dies while actively employed. The employee must be actively employed with the City to be eligible for this benefit. An employee's survivor who is eligible for any other pre-retirement death benefit may choose to receive that death benefit instead of this basic death benefit. The basic death benefit is a lump sum in the amount of the employee's accumulated contributions, where interest is currently credited at 7.5 percent per year, plus a lump sum in the amount of one month's salary for each completed year of current service, up to a maximum of six months' salary. For purposes of this benefit, one month's salary is defined as the member's average monthly full-time rate of compensation during the 12 months preceding death.

Upon the death of a retiree, a one-time lump sum payment of $500 will be made to the retiree's designated survivor(s), or to the retiree's estate.

Benefit terms provide for annual cost-of-living adjustments to each employee’s retirement allowance. Beginning the second calendar year after the year of retirement, retirement and survivor allowances will be annually adjusted on a compound basis by 2 percent.

Contributions
Section 20814(c) of the California Public Employees’ Retirement Law (“PERL”) requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. The total plan contributions are determined through CalPERS’ annual actuarial valuation process. The Public agency cost-sharing plans covered by either the Safety risk pools, the Plan’s actuarially determined rate is based on the estimated amount necessary to pay the Plan’s allocated share of the risk pool’s costs of benefits earned by employees during the year, and any unfunded accrued liability. The employer is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. For the fiscal year ended June 30, 2021, the contributions recognized as part of pension expense for the plan totaled $7,955,576 For the measurement period ended June 30, 2020 (the measurement date), the average contribution rate were as follows:

Active Employee Employer
Plans Contribution Rate Contribution Rate
Fire Tier 1 0.000% $842,527
Fire Tier 2 0.000% $ 0
Fire PEPRA 0.000% $ 3,586
Police Tier 1 9.000% 78.450%
Police Tier 2 9.000% 22.380%
Police PEPRA 12.750% 14.220%
Misc. Tier 1 7.000% 49.920%
Misc. Tier 2 7.000% 10.420%
Misc. PEPRA 6.750% 8.040%
64 182
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension
Actuarial Methods and Assumptions Used to Determine Total Pension Liability The June 30, 2019 valuation was rolled forward to determine June 30, 2020 total pension liability based on the following actuarial methods and assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 7.15%
Inflation 2.75%
Salary Increases Varies by Entry Age and Service
Investment rate of return 7.65% net of pension plan investment expenses, includes inflation Mortality Rate Table Derived using CalPERS’ Membership Data for all Funds.

Post Retirement Benefit Increase Contract COLA up to 2.75% until Purchasing Power Protection Allowance Floor on Purchasing Power applies, 2.75% thereafter All other actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial experience study for the period from 1997 to 2011, including updates to salary increase, mortality and retirement rates. The Experience Study report can be obtained at CalPERS’ website under Forms and Publications.

Discount Rate
The discount rate used to measure the total pension liability was 7.15 percent. To determine whether the municipal bond rate should be used in the calculation of a discount rate for each plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing of the plans, the tests revealed the assets would not run out. Therefore, the current 7.15 percent discount rate is appropriate and the use of the municipal bond rate calculation is not deemed necessary. The long-term expected discount rate of 7.15 percent is applied to all plans in the Public Employees Retirement Fund. The stress test results are presented in a detailed report called “GASB Crossover Testing Report” that can be obtained at CalPERS’ website under the GASB 68 section.

The long-term expected rate of return on pension plan investments was determined using a building- block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, staff took into account both short-term and long-term market return expectations as well as the expected pension fund (Public Employees’ Retirement Fund) cash flows. Such cash flows were developed assuming that both members and employers will make their required contributions on time and as scheduled in all future years. Using historical returns of all the funds’ asset classes, expected compound (geometric) returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent. 65 183
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Discount Rate (Continued)
The table below reflects long-term expected real rate of return by asset class. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. The target allocation shown was adopted by the Board effective on July 1, 2018.

New Strategic Real Return Real Return
Asset Class Allocation-% Years 1-101
-% Years 11+2 -%
Global Equity 50.00 4.80 5.98
Fixed Income 28.00 1.00 2.62
Inflation Assets 0.00 0.77 1.81
Private Equity 8.00 6.30 7.23
Real Estate 13.00 3.75 4.93
Liquidity 1.00 0.00 -0.92
1 An expected inflation of 2.0% used for this period
2 An expected inflation of 2.92% used for this period.

Sensitivity of the City’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate The following presents the City’s proportionate share of the net pension liability of the Plan as of the measurement date, calculated using the discount rate of 7.15%, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentagepoint higher (8.15%) than the current rate:

Plan's Net Pension Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(6.15%) Rate (7.15%) (8.15%)
Miscellaneous $ 23,795,937 $ 15,710,118 $ 9,029,060
Safety

$ 52,631,448 $ 35,767,664 $ 21,929,333
66 184
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Pension Plan Fiduciary Net Position
Detail information about the plan’s fiduciary net position is available in the separately issued CalPERS financial report and can be obtained from CalPERS’ website under Forms and Publications.

Proportionate Share of Net Pension Liability and Pension Expense The following table shows the plan’s proportionate share of the risk pool collective net pension liability over the measurement period:

Increase (Decrease)
Plan Total Pension Plan Fiduciary Net Net Pension
Liability Position Liability/(Asset)
Miscellaneous
Balance at: 6/30/19 (Valuation date) $ 59,281,280 $ 44,433,038 $ 14,848,242 Balance at: 6/30/20 (Measurement date) $ 60,761,093 $ 45,050,975 $ 15,710,118 Net Changes during 2019-2020 $ 1,479,813 $ 617,937 $ 831,876 Safety
Balance at: 6/30/18 (Valuation date) $ 120,919,892 $ 86,781,222 $ 34,138,671 Balance at: 6/30/19 (Measurement date) $ 124,177,639 $ 88,409,976 $ 35,767,664 Net Changes during 2018-2019 $ 3,257,747 $ 1,628,754 $ 1,628,993 67 185
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) The following is the approach established by the plan actuary to allocate the net pension liability and pension expense to the individual employers within the risk pool. (1) In determining a cost-sharing plan’s proportionate share, total amounts of liabilities and assets are first calculated for the risk pool as a whole on the valuation date (June 30, 2018). The risk pool’s fiduciary net position (“FNP”) subtracted from its total pension liability (“TPL”) determines the net pension liability (“NPL”) at the valuation date.
(2) Using standard actuarial roll forward methods, the risk pool TPL is then computed at the measurement date (June 30, 2019). Risk pool FNP at the measurement date is then subtracted from this number to compute the NPL for the risk pool at the measurement date. For purposes of FNP in this step and any later reference thereto, the risk pool’s FNP at the measurement date denotes the aggregate risk pool’s FNP at June 30, 2019 less the sum of all additional side fund (or unfunded liability) contributions made by all employers during the measurement period (2017-2018).
(3) The individual plan’s TPL, FNP and NPL are also calculated at the valuation date. TPL is allocated based on the rate plan’s share of the actuarial accrued liability. FNP is allocated based on the rate plan’s share of the fair value assets.
(4) Two ratios are created by dividing the plan’s individual TPL and FNP as of the valuation date from (3) by the amounts in step (1), the risk pool’s total TPL and FNP, respectively. (5) The plan’s TPL as of the Measurement Date is equal to the risk pool TPL generated in (2) multiplied by the TPL ratio generated in (4). The plan’s FNP as of the Measurement Date is equal to the FNP generated in (2) multiplied by the FNP ratio generated in (4) plus any additional side fund (or unfunded liability) contributions made by the employer on behalf of the plan during the measurement period. (6) The plan’s NPL at the Measurement Date is the difference between the TPL and FNP calculated in (5).

Deferred outflows of resources, deferred inflows of resources, and pension expense is allocate based on the City’s share of contributions during measurement period.

The City’s proportionate share of the net pension liability was as follows:

Miscellaneous Safety
June 30, 2020 0.37079% 0.54687%
June 30, 2021 0.37245% 0.53686%
Change - Increase (Decrease) 0.00166% -0.01001%

68 186
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) For the year ended June 30, 2021, the City recognized pension expense as follows:

Miscellaneous $ 2,633,614
Safety 5,321,962
$ 7,955,576
The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized over 5-years straight line. All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive and retired) as of the beginning of the measurement period.

The expected average remaining service lifetime (“EARSL”) is calculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired) in the risk pool. The EARSL for risk pool for the 2018-2019 measurement period is 3.7 years, which was obtained by dividing the total service years of 475,689 (the sum of remaining service lifetimes of the active employees) by 127,009 (the total number of participants: active, inactive, and retired).

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Miscellaneous
Deferred outflows
of Resources
Deferred inflows
of Resources
Pension contribution after measurement date $ 1,632,690 $ - Difference between expected and actual experience 809,589 - Changes of assumptions - (112,051)
Difference between projected and actual earning on
pension plan investments 466,694 -
Adjustment due to differences in proportions 47,514 (87,854) Difference between City contributions and
proportionate share of contributions - (161,320)
Total $ 2,956,487 $ (361,225)

69 187
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 9 – Defined Benefit Pension Plans (Continued)
Pension Liabilities, Pension Expenses, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pension (Continued)
Proportionate Share of Net Pension Liability and Pension Expense (Continued) At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (Continued):

Safety
Deferred outflows
of Resources
Deferred inflows
of Resources
Pension contribution after measurement date $ 3,339,197 $ (119,143) Difference between expected and actual experience 2.773,601 - Difference between projected and actual earning on
pension plan investments 777,382 -
Adjustment due to differences in proportions - (1,317,706) Difference between City contributions and
proportionate share of contributions 184,949 (1,309,309) Total $ 7,075,129 $ (2,746,157)

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources (Continued):

Deferred outflows of resources related to pensions resulting from the City’s contributions made subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Measurement Period Deferred Outflows/ (Inflows) of Resources Ended June 30, Miscellaneous Safety
2022 $ 32,932 $ (241,241)
2023 377,293 425,819
2024 328,507 415,685
2025 223,840 389,512
2026 - -
Thereafter - -
$ 962,572 $ 989,775

70 188
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 10 – Other Postemployment Benefit Plan
General Information about the Plan
On June 12, 2007, the City Council adopted a resolution authorizing participation in a post retirement health care plan trust to be administered by Public Agency Retirement Services (“PARS”) and Union Bank of California. In July 2007, the City signed an agreement with Public Agency Retirement Services to create and administer an irrevocable trust fund for the payment of other postemployment benefits for city employees. Funds in the amount of $1,401,000 that were previously set aside were forwarded to Union Bank pursuant to the agreement to establish the trust during the year ended June 30, 2008. Contributions are made on a monthly basis.

Plan Description
The City participates in a post retirement health care plan trust (“Plan”) administered by PARS and Union Bank of California. The Plan provides medical insurance benefits to eligible retirees, which is a single-employer defined benefit plan. PARS issues a publicly available financial report that includes financial statements and required supplementary information for the Plan. That report may be obtained by contacting the City at 1315 Valley Drive, Hermosa Beach, CA 90254.

The Plan is comprised of employees and retirees from several bargaining units, including General and Supervisory; Professional and Administrative Employees Association; Hermosa Beach Management Association; Police Management Association; Police Officers Association and Firefighters Association.

The range of monthly benefits to be paid by the City ranges from $40 to $556 per month based on years of service from 10 years to 20 years provided to the City.

The monthly benefits paid by the City are subject to change with increases provided based on age at retirement and years of service.

Post-Retirement Health Care Coverage for Fire Employees The City contracted with Los Angeles County for Fire Services (“Fire District”) on 12/30/2017. Fire District employees are provided post-retirement health coverage. The current vesting period is 10 years of Fire District service. Service with the City does not count towards coverage, only time actually worked in Fire District service counts towards the vesting period. Hermosa Beach Fire Association (HBFA) members who transfer to the Fire District and who take a service retirement before reaching 10 years of Fire District service are ineligible for the Fire District's retiree health benefit.

For those HBFA members who have 19 plus years of service with the City at the time of transfer to Fire District employment and who take a service retirement from the Fire District prior to vesting in the Fire District's retiree health plan, the City agrees to create a new Tier to the City's retiree health program as follow: the retired HBFA member will be eligible to receive from the City the $350 per month benefit set forth in Article 42(D) of the MOU.

This benefit is limited to the first four HBFA members who qualify for the benefit. 71 189
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 10 – Other Postemployment Benefit Plan (Continued) General Information about the Plan (Continued) Eligibility All of the Plan’s employees became participants in accordance with negotiated Memoranda of Understanding (“MOU”) as negotiated by each group or bargaining unit. In order to receive benefits, eligible employees must meet the minimum requirements defined in their MOU. Participants of the Plan as of June 30, 2021 were as follows:

Participants Total
Active employees 123
Retirees 69
Retirees not receiving benefits 3
Total 195

Net OPEB Liability
The City’s net OPEB liability was measured as of June 30, 2020, and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation as of July 1, 2020.

Actuarial Assumptions
The total OPEB liability, measured as of June 30, 2020, was determined using the following actuarial assumptions:

Actuarial Cost Method Entry Age Normal
Actuarial Assumptions:

Discount Rate 6.00% Pre-funded in PARS Moderate Strategy Inflation 2.75% per annum
Salary Increases 3.00% Aggregate
Merit: 1997-2015 CalPERS Experience Study
Investment Rate of Return 6.00%
Healthcare Trend Rate Non-Medicare: 7.5% in 2019, to 4.0% in 2076 and thereafter Medicare: 6.5% in 2019 to 4.0% in 2076 and thereafter
Mortality, Retirement, Disability, Termination CalPERS 1997-2015 Experience Study Service Requirement 100% at 20 Years of Service
Participation Rate Currently covered: 100%
The actuarial assumptions used in the July 1, 2020 valuation were based on the results of an actuarial experience study for the period July 1, 2019 through June 30, 2020. 72 190
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 10 – Other Postemployment Benefit Plan (Continued) Net OPEB Liability (Continued)
Actuarial Assumptions (Continued)
The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Target Allocation Expected Real
Asset Class PARS-Moderate Rate of Return
Global Equity 48.00% 4.820%
Fixed Income 45.00% 1.470%
REIs 2.00% 3.760%
Cash 5.00% 0.060%

100.00%
Discount Rate
The discount rate used to measure the total OPEB liability was 6.00 percent. The actuarial assumptions used to determine the discount rate was based on the current funding practice and assumed the fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees.

Therefore, the long-term expected rate of return on OPEB plan investments was applied to all periods of projected benefit payments to determine the total OPEB liability
Sensitivity of the Total OPEB Liability to Changes in the Discount Rate The following presents the total OPEB liability of the City, as well as what the total OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2020:

Plan's OPEB Liability/(Asset)
Discount Rate - 1% Current Discount Discount Rate + 1%
(5.00%) Rate (6.00%) (7.00%)
$ 904,901 $ (729,118) $ (2,108,993)
Sensitivity of the Total OPEB Liability to Changes in Healthcare Cost Trend Rates The following presents the total OPEB liability of the City, as well as what the total OPEB liability would be if it were calculated using a health care cost trend rates that are one percentage point lower or one percentage point higher than the current rates, for the measurement period ended June 30, 2020:

Plan's OPEB Liability/(Asset)
Healthcare
-1.00% Trend Rate +1.00%
$ (2,004,473) $ (729,118) $ 804,210
73 191
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 10 – Other Postemployment Benefit Plan (Continued) Change in Net OPEB Liability
Total Net
OPEB Plan OPEB
Liability Fiduciary Liability
(Asset) Net Position (Asset)
Balance at June 30, 2019 (Valuation Date)

$ 12,861,634 $ 13,413,070 $ (551,436)
Changes Recognized for the Measurement Period:

Service Cost 385,000 - 385,000
Interest on the total OPEB liability 779,630 - 779,630
Changes of benefit terms - - -
Difference between expected and actual experience - - - Changes of assumptions - - -
Contributions from the employer - 870,427 (870,427)
Contributions from employees - - -
Net investment income, net of administrative expense - 504,213 (504,213) Benefit payments, including refunds of employee contributions (505,591) (505,591) - Administrative Expense - (32,328) 32,328
Net Changes during July 1, 2019 to June 30, 2020 659,039 836,721 (177,682) Balance at June 30, 2020 (Measurement Date) $ 13,520,673 $ 14,249,791 $ (729,118) OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB For the year ended June 30, 2021, OPEB expense in the amount of $532,478 is included in the accompanying statement of activities.

At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Deferred Outflows
of resources
Deferred Inflows
of resources
Employer contribution after measurement date $ 982,447 $ - Differences between expected and actual experience 461,709 - Changes in assumptions 563,076 -
Difference between projected and actual earning
on plan investments 94,831 -
$ 2,102,063 $ -
The $982,447 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net OPEB asset in the year June 30, 2022. Other amounts reported as deferred inflows of resources related to OPEB will be recognized as OPEB expense as follows:

Year Ending
June 30 Amount
2022 $ 146,966
2023 225,967
2024 229,381
2025 251,621
2026 189,776
Thereafter 75,905
Total $ 1,119,616
74 192
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 11 – Classification of Fund Balances
At June 30, 2021, fund balances are classified in the governmental funds as follows:

General
Fund

FEMA
Special
Revenue
Fund

Capital
Improvements
Capital
Projects

Nonmajor
Governmental
Funds

Total
Nonspendable
Prepaid items $ 560,718 $ - $ - $ 15,179 $ 575,897
Total nonspendable 560,718 - - 15,179 575,987
Restricted
Verizon PEG Grant 58,695 - - - 58,695
General Plan
Maintenance Fees 285,938

-

-

-

258,938
Chamber Marquee Donation 50,000 - - - 50,000
CASP Fees 42,693 - - - 42,693
Lighting District - - - 162,106 162,106
Gas Tax - - - 943,992 943,992
Source Reduction/Recycling - - - 176,947 176,947
Greenwich Underground - - - 120,898 120,898
Parks/Rec Facility Projects - - - 445,898 445,898
Undergrounding Districts - - - 7,834 7,834
Prop A, C and Measure
R Transit Projects -

-

-

2,650,724

2,650,724
Air Quality
Improvement Projects -

-

-

84,634

84,634
Supplemental Law
Enforcement Services Funds -

-

-

345,206

345,206
Asset Forfeiture – Drug
Enforcement and Education -

-

-

636,813

636,813
Fire Protection - - - 26,775 26,775
Community Development
Block Grant -

-

-

3,192

3,192
Grants - - - 326,975 326,975
Measure M and W - - - 378,814 378,814
RTI Undersea Cable
Tidelands -

-

-

449,671

449,671
Lease Revenue Bond - - - 95,223 95,223
Sewers and Storm Drains - - - 3,134,046 3,134,046
Total restricted 437,326 - - 9,989,766 10,427,092
Committed
In Lieu Fee- Parking
Facilities 144,500

-

-

-

144,500
RTI Undersea Cable - - - 848,138 848,138
Tyco &Tyco Tidelands - - - 1,744,592 1,744,592
Retirement Trust 829,060 - - - 829,060
Retirement Rate Stabilization 1,021,575 - - - 1,021,575 Total committed 1,995,135 - - 2,592,712 4,587,847
Assigned
Capital Projects 40,411 - 7,282,361 - 7,322,772
Capital Facility Reserve - - 1,267,968 - 1,267,968
Storm Drains - - - 2,096,023 2,096,023
Fund Balance Carryforward
for 20-21 Budget 1,823,416

-

-

-

1,823,416
Reappropriations 590,913 - - - 590,913
Contingencies 5,739,992 - - - 5,739,992
Compensated absences 267,950 - - - 267,950
Prop A Exchange 455,549 - - - 455,549
19-20 Year End
Balance 1,751,727

-

-

-

1,751,727
Total assigned 10,669,958 - 8,550,329 2,096,023 21,316,310 Unassigned 5,834,252 (820,642) - (6,401) 5,007,209
$19,497,389 $(820,642) $ 8,550,329 $ 14,687,279 $ 41,914,355 75 193
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 12 – Non-City Obligations
2004 Beach Drive Utility Underground Assessment District Special Assessment Bonds In July 2004, limited obligation improvement bonds in the amount of $404,341 were issued for the Beach Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 26,510 $ 3,992 $ 30,502
2023 27,783 2,929 30,712
2024 29,116 1,684 30,800
2025 30,514 732 31,246
$ 113,923 $ 9,337 $ 123,260
2005 Bayview Drive Utility Underground Assessment District Improvement Bonds In February 2005, limited obligation improvement bonds in the amount of $951,667 were issued for the Bayview Drive Utility Underground Assessment District for the undergrounding of utilities within the district. The City is not financially obligated for payment of the bonds, which are secured by private property in the district. The bonds will be repaid from assessments to the property owners as part of their annual property tax bill.

The annual debt service requirements by year are as follows:

Year ending
June 30, Principal Interest Total
2022 $ 48,135 $ 10,301 $ 58,436
2023 50,606 8,203 58,809
2024 53,181 5,998 59,179
2025 55,867 3,680 59,547
2026 58,666 1,247 59,913
Total $ 266,455 $ 29,429 $ 295,884
76 194
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 13 – Commitments and Contingencies
A. Commitments
The City had several outstanding or planned construction and other projects as of June 30, 2021. These projects are evidenced by contractual commitments with contractors and include:

Commitment
Project Spent to Date Remaining
Permit Software Upgrade and Integration Project $ 564,993 $ 114,045 Fire Department Facility and Equipment Conversion 1,019,788 1,013,883 Total $ 1,584,781 $ 1,127,928
Of the commitments listed above, $949,290 represents commitments in the Capital Projects Fund, $114,045 represents commitments in Internal Service Funds, and $64,593 represents commitments in Special Revenue Funds.

In January 2000, the North Pier Parking Structure was completed. The parking structure contains 400 parking spaces and was funded in part by a downtown developer in exchange for the use of 100 spaces in the structure.

The remainder of the funding was provided by the City’s former Downtown Enhancement Enterprise Fund and Prop A Open Space funding contributed by the Los Angeles County Department of Beaches and Harbors (“County”). In consideration of the County contribution, 50% of the annual net income derived from the parking structure must be shared with the County each year by September 1. The payment made to the County for fiscal year 2020-2021 is $166,229. The County contract ends in 2027.

B. Contingencies
The City is a defendant in a number of lawsuits, which have arisen in the normal course of business. While substantial damages are alleged in some of these actions, their outcome cannot be predicted with certainty.

C. Grants
Amounts received or receivable from granting agencies are subject to audit and adjustment by grantor agencies.

While no matters of noncompliance were disclosed by the audit of the financial statements or single audit of the Federal grant programs, grantor agencies may subject grant programs to additional compliance tests, which may result in disallowed costs. In the opinion of management, future disallowances of current or prior grant expenditures, if any, would not have a material adverse effect on the financial position of the City.

D. Ongoing Operations
The City’s operations may be affected by the recent and ongoing outbreak of COVID-19, which was declared a pandemic by the World Health Organization in March 2020. The ultimate disruption which may be caused by the outbreak is uncertain; however, possible effects may include, but are not limited to, a reduction in certain tax revenues and a decline in the value of investments, which could have an impact on the City’s financial position and operating results. There is significant uncertainty as to the severity and longevity of the outbreak and City management is in the process of evaluating the impact on the City and its financial statements. 77 195
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2021
Note 14 – Fund Balance and Net Position Restatement
The following schedule summarizes the effects of the prior period adjustment to the Fund Financial Statements.

Governmental Funds:

Grants
Special
Revenue
Fund
Fund balance at June 30, 2020,
as previously reported $ 425,732
Adjustment made to prior year:

Understatement of
Unavailable revenue (197,012)
Fund balance as July 1, 2020, as restated $ 228,720
Note 15 – Subsequent Events
Management has evaluated subsequent events through March 31, 2022 which is the date the financial statements were available to be issued, and has determined that there are no transactions that will have a significant impact on the City.
78 196

REQUIRED SUPPLEMENTARY

INFORMATION (UNAUDITED)
79 197
Actual Variance with
Original Final Amounts Final Budget
Fund balance, July 1, 2020 $ 13,122,873 13,122,873 $ 13,122,873 $ - $ Revenues (inflows):

Property taxes 19,971,254 19,971,810 20,507,313 535,503 Other taxes 8,273,672 8,997,713 9,718,854 721,141
Licenses and permits 905,881 902,093 904,362 2,269
Fines and forfeitures 1,033,230 1,978,497 2,129,829 151,332 Use of money and property 680,085 543,191 515,241 (27,950) Intergovernmental 143,510 126,895 101,955 (24,940)
Charges for services 4,674,001 5,022,541 6,052,751 1,030,210 Miscellaneous 66,145 93,044 167,815 74,771
Interest earned on investments 201,689 92,261 (46,868) (139,129) Transfers in 3,396,734 3,396,606 3,396,606 -
Amount available for appropriations 39,346,201 41,124,651 43,447,858 2,323,207 Charges to appropriations (outflows):

Legislative and legal 997,331 1,406,971 1,474,436 (67,465) General government 4,526,623 5,134,781 4,166,334 968,447 Public safety 23,722,158 23,301,190 21,612,013 1,689,177 Community development 2,181,511 2,133,066 2,062,104 70,962 Culture and recreation 1,240,732 1,227,482 1,326,493 (99,011) Public works 5,843,709 6,032,839 5,277,781 755,058
Capital outlay 187,704 338,345 46,545 291,800
Transfers out 3,396,734 1,776,701 1,107,636 669,065
Total charges to appropriations 42,096,502 41,351,375 37,073,342 4,278,033 Fund balance, June 30, 2021 10,372,572 $ 12,896,149 $ 19,497,389 $ (1,954,826) $

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - General Fund
For the Year Ended June 30, 2021
Budgeted Amounts
80 198
Actual Variance with
Original Final Amounts Final Budget
Fund balance (deficit), July 1, 2020 $ (249,055) - $ (249,055) $ - $ Revenues (inflows):

Intergovernmental - - - -
Amount available for appropriations - - - -
Charges to appropriations (outflows):

General government 125,929 - 571,587 (571,587)
Total charges to appropriations 125,929 - 571,587 (571,587) Fund balance (deficit), June 30, 2021 (125,929) $ (249,055) $ (820,642) $ 571,587 $

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited)
Budgetary Comparison Schedule - FEMA Special Revenue Fund For the Year Ended June 30, 2021
Budgeted Amounts
81 199
City of Hermosa Beach
Required Supplementary Information (Unaudited) (Continued) Notes to the Budgetary Comparison Schedule For the Year Ended June 30, 2020
Budgetary Control and Accounting Policy
Budgets are annually adopted for all governmental and proprietary fund types on a basis consistent with generally accepted accounting principles. The City is required by its municipal code to adopt an annual budget on or before June 30 for the ensuing fiscal year. From the effective date of the budget, the amounts become the “annual appropriated budget.”
The appropriated budget is prepared by fund, department and division. The City Council may amend the budget by motion during the fiscal year. Expenditures may not legally exceed appropriations at the fund level. The City Manager is authorized to transfer budgeted amounts between departments within the same fund; however, any transfers between funds or revisions that alter total appropriations of any fund require City Council approval. The legal level of control is therefore at the fund level.

Supplemental appropriations, which increase appropriations, were made during the fiscal year, therefore, “final” budgeted revenue and appropriation amounts shown in the financial statements represent the original budget, modified for adjustments during the year. Appropriations lapse at the end of the fiscal year.

Encumbrances - Under encumbrance accounting, purchase orders, contracts and other commitments for expenditures are recorded to reserve that portion of the applicable appropriation. Encumbrance accounting is employed as an extension of formal budgetary accounting. Unexpended appropriations lapse at year-end. 82 200
June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17
City's Proportion of the Net
Pension Liability/(Asset) 0.37245% 0.37079% 0.37090% 0.14664% 0.14882% City's Proportionate share
of the Net Pension Liability/(Asset) $ 14,848,242 15,710,118 $ 13,978,150 $ 14,452,712 $ 12,877,883 $ City's Covered payroll 7,191,189 $ 7,192,641 $ 7,402,032 $ 6,785,443 $ 6,540,869 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 218.46% 206.44% 188.84% 213.00% 196.88% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 74.14% 75.95% 74.50% 72.80% 73.59% June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year
2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.15099% 0.16331%
City's Proportionate share
of the Net Pension Liability/(Asset) $ 10,161,668 10,364,015 $ City's Covered payroll $ 5,355,599 5,700,485 $
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 181.81% 189.74%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 78.00% 78.34% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only seven years are presented.

CITY OF HERMOSA BEACH
Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2021
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan Required Supplementary Information (Unaudited) (Continued) 83 201
June 30, 2020 1 June 30, 2019 1 June 30, 2018 1 June 30, 2017 1 June 30, 2016 1 Fiscal Year Fiscal Year Fiscal Year Fiscal Year Fiscal Year 2020-21 2019-20 2018-19 2017-18 2016-17
City's Proportion of the Net
Pension Liability/(Asset) 0.53686% 0.54687% 0.57283% 0.35213% 0.37217% City's Proportionate share
of the Net Pension Liability/(Asset) 35,767,664 $ 34,138,671 $ 33,611,333 $ 34,921,802 $ 32,204,127 $ City's Covered payroll $ 4,108,280 4,130,518 $ 5,320,583 $ 5,597,657 $ 5,342,937 $ City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 865.94% 830.97% 631.72% 623.86% 602.74% Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 71.20% 71.77% 71.23% 69.01% 68.78% June 30, 2015 1 June 30, 2014 1
Fiscal Year Fiscal Year
2015-16 2014-15
City's Proportion of the Net
Pension Liability/(Asset) 0.40019% 0.42012%
City's Proportionate share
of the Net Pension Liability/(Asset) 27,469,000 $ 26,141,972 $ City's Covered payroll $ 5,065,109 5,492,822 $
City's Proportionate Share of the Net
Pension Liability/(Asset) as a
Percentage of its covered payroll 500.09% 516.12%
Plan's Proportionate Share of the
Fiduciary Net Position as a
Percentage of the Total Pension Liability 72.40% 74.24% 1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The Measurement date 2014 was the first year of implementation, therefore only seven years are presented.

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Schedule of City's Proportionate Share of the Net Pension Liability and Related Ratios For the Year Ended June 30, 2020
Last Ten Fiscal Years
California Public Employees' Retirement System ("CalPERS") Safety Plan 84 202
2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contribution 2 $ 618,021 693,322 $ 575,931 $ 527,115 $ 518,722 $ Contributions in relation to
the actuarially determined
contributions 2
$ (1,907,072) (1,632,690) $ (1,682,561) $ (1,516,745) $ (1,379,151) $ Contribution deficiency
(excess) (939,368) $ (1,289,051) $ (1,106,630) $ (989,630) $ (860,429) $ Covered payroll 2 $ 7,191,189 7,613,425 $ 7,192,641 $ 7,402,032 $ 6,785,443 $ Contributions as a
percentage of covered
employee payroll 21.44% 26.52% 23.39% 20.49% 20.33%
2015-16 2014-15 2013-14 1
Actuarially determined
contribution 2 $ 883,493 469,656 $ 799,637 $
Contributions in relation to
the actuarially determined
contributions 2
$ (883,493) (1,245,120) $ (799,637) $
Contribution deficiency
(excess) (775,464) $ - $ - $
Covered payroll 2 $ 5,700,485 6,540,869 $ 5,355,599 $
Contributions as a
percentage of covered
employee payroll 19.04% 15.50% 14.93%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only eight years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Miscellaneous Plan

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2021
Last Ten Fiscal Years
85 203
2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contribution 2 $ 753,728 996,107 $ 804,633 $ 1,016,858 $ 1,029,129 $ Contributions in relation to
the actuarially determined
contributions 2
$ (2,799,261) (3,342,664) $ (3,878,196) $ (4,226,782) $ (3,921,179) $ Contribution deficiency
(excess) (2,346,557) $ (2,045,533) $ (3,073,563) $ (3,209,924) $ (2,892,050) $ Covered payroll 2 $ 4,130,518 4,516,727 $ 4,108,280 $ 5,320,583 $ 5,597,651 $ Contributions as a
percentage of covered
employee payroll 74.01% 67.77% 94.40% 79.44% 70.05%
2015-16 2014-15 2013-14 1
Actuarially determined
contribution 2 $ 2,842,420 1,033,371 $ 1,923,392 $
Contributions in relation to
the actuarially determined
contributions 2
$ (2,842,420) (3,698,115) $ (1,923,392) $
Contribution deficiency
(excess) (2,664,744) $ - $ - $
Covered payroll 2 $ 5,492,822 5,342,937 $ 5,065,109 $
Contributions as a
percentage of covered
employee payroll 69.22% 51.75% 37.97%
1 Historical information is presented only for measurement periods for which GASB 68 is applicable. The fiscal year 2014 was the first year of implementation, therefore only eight years are presented. 2 Covered Payroll represented above is based on pensionable earnings provided by the employer.

Notes to Schedule
None.

California Public Employees' Retirement System ("CalPERS") Safety Plan

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Schedule of City's Contributions - Pensions
For the Year Ended June 30, 2021
Last Ten Fiscal Years
86 204
For the Measurement Period: 2019-20 2018-19 2017-18 2016-17 Total OPEB Liability
Service cost 385,000 $ 327,066 $ 317,540 $ 326,000 $
Interest on the total OPEB Liability 779,630 661,475 631,597 624,000 Actual and expected experience difference - 632,713 - - Changes in assumptions - 771,624 - -
Changes in benefit terms - - - (381,000)
Benefit payments (505,591) (457,550) (463,831) (399,000) Net change in total OPEB liability 659,039 1,935,328 485,306 170,000 Total OPEB liability - beginning 12,861,634 10,926,306 10,441,000 10,271,000 Total OPEB liability - ending (a) 13,520,673 $ 12,861,634 $ 10,926,306 $ 10,441,000 $ Plan Fiduciary Net Position
Contribution - employer 870,427 $ 1,486,916 $ 1,569,307 $ 1,050,000 $ Net investment income 504,213 838,766 645,729 906,000
Benefit payments (505,591) (457,550) (463,831) (399,000) Administrative expense (32,328) (29,410) (26,857) (23,000) Net change in plan fiduciary net position 836,721 1,838,722 1,724,348 1,534,000 Plan fiduciary net position - beginning 13,413,070 11,574,348 9,850,000 8,316,000 Plan fiduciary net position - ending (b) 14,249,791 13,413,070 11,574,348 9,850,000 $ Net OPEB liability (asset) - ending (a)-(b) (729,118) $ (551,436) $ (648,042) $ 591,000 $ Fiduciary net position as a % of
total OPEB liability 105.40% 104.30% 105.90% 94.34%
Covered payroll 12,297,066 10,461,266 11,551,135 11,551,135 Net OPEB liability as a
percentage of payroll -5.93% -5.27% -5.61% 5.12%
* 2018 is the first year of implementation, therefore only four years are available for the required 10-year schedule.

CITY OF HERMOSA BEACH
Schedule of Changes in the Net OPEB Liability and Related Ratios For the Year Ended June 30, 2021
Required Supplementary Information (Unaudited) (Continued) Last Ten Fiscal Years
87 205
For the Measurement
Period: 2020-21 2019-20 2018-19 2017-18 2016-17
Actuarially determined
contributions 373,000 $ 314,000 $ 324,000 $ 818,000 $ 818,000 $ Contributions in relation to
the actuarially determined
contribution (982,447) (870,427) (1,486,916) (1,569,000) (1,050,000) Contribution deficiency
(excess) (609,447) $ (556,427) $ (1,162,916) $ (751,000) $ (232,000) $ Covered payroll 13,037,862 $ 12,297,066 $ 10,461,266 $ 11,551,135 $ 10,955,041 $ Contributions as a percentage
of covered payroll 7.54% 7.08% 14.21% 13.58% 9.58%
* 2018 is the first year of implementation, therefore only five years are available for the required 10-year schedule.

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Schedule of City's Contributions - OPEB
For the Year Ended June 30, 2021
Last Ten Fiscal Years
88 206

SUPPLEMENTARY INFORMATION
89 207
This page intentionally left blank.
90 208

NON MAJOR

GOVERNMENTAL FUNDS
Special Revenue Funds:

Lighting and Landscaping District Fund - This fund is used to account for the Lighting Assessment District, which was created for street lighting/median maintenance purposes pursuant to Street and Highway Code 22500-22679.

State Gas Tax Fund - This fund is used to account for the City's share of state gasoline tax, which is restricted for use on public streets. Restricted Transportation Development Act funds from Los Angeles County Transportation Commission for the Strand Walkway Project and Bicycle Path Project are also accounted for in this fund.

AB 939 Fund - This fund is used to account for the fees collected in connection with solid waste collection. The fees are used to implement a Source Reduction and Recycling Element and a Household Waste Element.

Prop A Open Space Fund - This fund is used to account for funds generated by passage of the L.A. County Safe Neighborhood Parks Bond Act by County voters for the purpose of improving parks and recreational facilities.

Tyco Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity.

Tyco Tidelands Fund - This fund is used to account for the portion of the funds specific to the tidelands and submerged lands received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach that were set aside to build one new restroom and rehabilitate three existing restrooms at the beach.

Parks/Recreation Facilities Tax Fund - This fund is used to account for revenue from subdivision fees and park or recreation facility tax fees on new dwellings. Generally, the funds are to be used for acquisition, improvements and expansion of park or recreational facilities.

Bayview Drive Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Bayview Utility Underground Special Assessment District.

Myrtle District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Myrtle Avenue Utility Underground Special Assessment District.

Loma District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District.

Beach Drive Assessment District Administrative Expense Fund - This fund is used to account for all administrative expenditures required for the Loma Drive Utility Underground Special Assessment District.

Proposition "C" Fund - This is a fund which was added during 1992 to account for funds allocated from the voter-approved 1/2 cent sales tax. Funds must be used for transit purposes.

Measure "R" Fund - This is a fund which was added July 1, 2009 to account for a 1/2 cent sales tax approved by Los Angeles County voters in November 2008 to meet the transportation needs of Los Angeles County. The program is to be used for transportation projects that have been approved by the Los Angeles County Metropolitan Transit Authority.

Air Quality Management District Fund - This fund is used to account for funds distributed by the South Coast Air Quality Management district. The revenues are restricted to programs which promote reduction in air pollution from motor vehicles. 91 209

NON MAJOR
GOVERNMENTAL FUNDS (Continued)
Special Revenue Funds (Continued):

Supplemental Law Enforcement Services Fund - This fund is used to account for funds received from the Citizen Option for Public Safety ("COPS") program, established by the State Legislature in fiscal year 1996-1997. Funds must be used for front line municipal police services and must supplement and not supplant existing funding.

Asset Seizure and Forfeiture Fund - This fund is used to account for property seized as a result of illegal activity and forfeited to the Police Department. Funds must be used for law enforcement purposes to supplement, not replace or decrease, existing appropriations.

Fire Protection Fund - This fund is used to account for fire flow fees which are used to upgrade and enhance the fire flow capabilities of the fire protection system in the City and for upgrades to fire facilities.

Community Development Block Grant (CDBG) Fund - This fund is used to track the costs related to community development block grants.

Measure "M" Fund - This fund is used to account for voter-approved 1/2 cent sales tax for a Los Angeles County Traffic Improvement Plan to improve freeway traffic flow/safety; repair potholes/sidewalks; repave local streets; earthquake-retrofit bridges; synchronize signals; keep senior/disabled/student fares affordable; expand rail/subway/bus systems; improve job/school/airport connections; and create jobs.

RTI Undersea Cable Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system with a landing in Hermosa Beach. The project will provide additional capacity for global voice and data transmission and global access to planned and existing land-based communication networks in the project area.

RTI Undersea Cable Tidelands Fund - This fund is used to account for funds set aside according to the MC Global (now RTII) easement agreement for easement within tidelands and submerged lands.

Proposition "A" Transit Special Revenue Fund - Transit revenue consists primarily of Proposition A fund (the 1/2 cent sales tax for Los Angeles County transportation purposes). The City currently operates a Dial-a-Ride program for seniors, a taxi voucher program, a commuter bus, special event and after school program shuttles and subsidizes bus passes for senior citizens and students.

Grants Special Revenue Fund – This fund is used to support eligible service agencies.

CARES Act Special Revenue Fund - This fund is used to account for COVID-19 related expenditures reimbursable under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

Measure “W” Special Revenue Fund - This fund is used to account for projects dedicated to increase local water supply, improve water quality, and protect public health.

Sewer Special Revenue Fund - This fund is used to account for funds derived from sewer service charge levied on all Hermosa Beach properties and other miscellaneous service charges.

Storm Drain Special Revenue Fund - This fund is used to account for a portion of the 6% utility user tax and maintenance of the City’s storm drains. This includes administration of the national Pollution Discharge Elimination System Program.

Debt Service Fund:
2015 Lease Revenue Bond - This fund is used to account for 2015 Lease Revenue Bond.

Capital Project Funds:

Capital Improvement - This fund is set aside for capital improvement projects.

Greenwich Underground - This fund is set aside for capital improvement projects. 92 210
Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space Tyco
Cash and investments 188,424 $ 804,130 $ 168,502 $ - $ 1,743,292 $ Accounts receivable 13,725 138,014 8,822 6,140 -
Property taxes receivable, net 9,662 - - - -
Reimbursable grants receivable - - - - -
Interest receivable 135 585 121 - 1,282
Other assets - 1,933 - - -
Total assets $ 944,662 211,946 $ 177,445 $ 6,140 $ 1,744,574 $ Liabilities:

Accounts payable and accrued liabilities 33,144 $ 670 $ - $ - $ - $ Accrued wages and benefits payable 7,034 - 498 - -
Unearned revenues - - - - -
Due to other funds - - - 12,337 -
Compensated absences, due within one year - - - - -
Total liabilities 670 40,178 498 12,337 -
Deferred inflows of resources:

Unavailable revenue 9,662 - - - -
Total deferred inflows of resources - 9,662 - - -
Fund Balances:

Nonspendable - - - - -
Restricted 162,106 943,992 176,947 - -
Committed - - - - 1,744,574
Assigned - - - - -
Unassigned - - - (6,197) -
Total fund balances 943,992 162,106 176,947 (6,197) 1,744,574 Total liabilities, deferred inflows
and fund balances $ 944,662 211,946 $ 177,445 $ 6,140 $ 1,744,574 $ ASSETS

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Balance Sheet
Nonmajor Governmental Funds
June 30, 2021
93 211
Parks/ Bayview Myrtle Loma
Recreation Drive District District
Tyco Facilities Administrative Administrative Administrative Tidelands Tax Expense Expense Expense
Cash and investments 18 $ 445,237 $ 4,741 $ - $ - $
Accounts receivable - 2,000 - - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable - 320 3 - -
Other assets - - - - -
Total assets $ 447,557 18 $ 4,744 $ - $ - $
Liabilities:

Accounts payable and accrued liabilities - $ 1,659 $ 371 $ - $ - $ Accrued wages and benefits payable - - - - -
Unearned revenues - - - - -
Due to other funds - - - 111 93
Compensated absences, due within one year - - - - -
Total liabilities 1,659 - 371 111 93
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:

Nonspendable - - - - -
Restricted 18 445,898 4,373 - -
Committed - - - - -
Assigned - - - - -
Unassigned - - - (111) (93)
Total fund balances 445,898 18 4,373 (111) (93)
Total liabilities, deferred inflows
and fund balances $ 447,557 18 $ 4,744 $ - $ - $
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
94 212
Beach Drive Air Supplemental
Assessment Quality Law
District Proposition Measure Management Enforcement
Admin Expense "C" "R" District Services
Cash and investments 3,806 $ 1,399,784 $ 535,502 $ 65,151 $ 338,240 $ Accounts receivable - - 10,000 19,489 -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable 3 1,025 335 48 245
Other assets - - - - 9,280
Total assets $ 1,400,809 3,809 $ 545,837 $ 84,688 $ 347,765 $ Liabilities:

Accounts payable and accrued liabilities 348 $ 7,368 $ 17,716 $ - $ 2,559 $ Accrued wages and benefits payable - 1 - 54 -
Unearned revenues - - - - -
Due to other funds - - - - -
Compensated absences, due within one year - - 188 - -
Total liabilities 7,369 348 17,904 54 2,559
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:

Nonspendable - - - - 11,590
Restricted 3,461 1,393,440 527,933 84,634 333,616
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 1,393,440 3,461 527,933 84,634 345,206 Total liabilities, deferred inflows
and fund balances $ 1,400,809 3,809 $ 545,837 $ 84,688 $ 347,765 $

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES
95 213
Asset
Seizure RTI
and Fire Measure Undersea
Forfeiture Protection CDBG "M" Cable
Cash and investments 637,055 $ 26,756 $ 1 $ 358,930 $ 847,520 $ Accounts receivable - - 3,191 - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - - - -
Interest receivable 462 19 - 265 618
Other assets - 3,589 - - -
Total assets $ 30,364 637,517 $ 3,192 $ 359,195 $ 848,138 $ Liabilities:

Accounts payable and accrued liabilities 704 $ 3,589 $ - $ - $ - $ Accrued wages and benefits payable - - - - -
Unearned revenues - - - - -
Due to other funds - - - - -
Compensated absences, due within one year - - - - -
Total liabilities 3,589 704 - - -
Deferred inflows of resources:

Unavailable revenue - - - - -
Total deferred inflows of resources - - - - -
Fund Balances:

Nonspendable - 3,589 - - -
Restricted 636,813 23,186 3,192 359,195 -
Committed - - - - 848,138
Assigned - - - - -
Unassigned - - - - -
Total fund balances 26,775 636,813 3,192 359,195 848,138 Total liabilities, deferred inflows
and fund balances $ 30,364 637,517 $ 3,192 $ 359,195 $ 848,138 $

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
Special Revenue Funds

AND FUND BALANCES

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
ASSETS
96 214
RTI
Undersea
Cable Proposition CARES Measure
Tidelands "A" Transit Grants Act "W"
Cash and investments 449,344 $ 782,646 $ - $ 274,759 $ 19,605 $ Accounts receivable - - 207,982 - -
Property taxes receivable, net - - - - -
Reimbursable grants receivable - - 348,257 15,174 -
Interest receivable 327 560 - - 14
Other assets - - - 2,987 -
Total assets $ 783,206 449,671 $ 556,239 $ 292,920 $ 19,619 $ Liabilities:

Accounts payable and accrued liabilities - $ 38,449 $ 104,591 $ - $ - $ Accrued wages and benefits payable - 227 - - -
Unearned revenues - - - - -
Due to other funds - - 220,534 - -
Compensated absences, due within one yea - - 47 - -
Total liabilities 38,676 - 325,172 - -
Deferred inflows of resources:

Unavailable revenue - - 197,012 - -
Total deferred inflows of resources - - 197,012 - -
Fund Balances:

Nonspendable - - - - -
Restricted 449,671 744,530 34,055 292,920 19,619
Committed - - - - -
Assigned - - - - -
Unassigned - - - - -
Total fund balances 744,530 449,671 34,055 292,920 19,619 Total liabilities, deferred inflows
and fund balances $ 783,206 449,671 $ 556,239 $ 292,920 $ 19,619 $

AND FUND BALANCES
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,
Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
97 215
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
Cash and investments 3,079,719 $ 2,181,766 $ 120,898 $ 95,223 $ 14,571,049 $ Accounts receivable 72,936 1 - - 482,300
Property taxes receivable, net 17,922 - - - 27,584
Reimbursable grants receivable - - - - 363,431
Interest receivable 2,183 - - - 8,550
Other assets 728 - - - 18,517
Total assets $ 2,181,767 3,173,488 $ 120,898 $ 95,223 $ 15,471,431 $ Liabilities:

Accounts payable and accrued liabilities 11,203 $ 79,402 $ - $ - $ 301,773 $ Accrued wages and benefits payable 28,239 6,342 - - 42,395 Unearned revenues - - - - -
Due to other funds - - - - 233,075
Compensated absences, due within one yea - - - - 235
Total liabilities 85,744 39,442 - - 577,478
Deferred inflows of resources:

Unavailable revenue - - - - 206,674
Total deferred inflows of resources - - - - 206,674
Fund Balances:

Nonspendable - - - - 15,179
Restricted 3,134,046 - 120,898 95,223 9,989,766
Committed - - - - 2,592,712
Assigned - 2,096,023 - - 2,096,023
Unassigned - - - - (6,401)
Total fund balances 2,096,023 3,134,046 120,898 95,223 14,687,279 Total liabilities, deferred inflows
and fund balances $ 2,181,767 3,173,488 $ 120,898 $ 95,223 $ 15,471,431 $ Special Revenue Funds
ASSETS

LIABILITIES, DEFERRED

INFLOWS OF RESOURCES,

AND FUND BALANCES

CITY OF HERMOSA BEACH
Combining Balance Sheet (Continued)
Nonmajor Governmental Funds
June 30, 2021
98 216
Lighting and Prop A
Landscaping State Open
District Gas Tax AB 939 Space Tyco
REVENUES:

Property taxes 461,090 $ - $ - $ - $ - $
Other taxes - - - - -
Fines and forfeitures - - - - -
Use of money and property - - - - 337,932
Intergovernmental - 794,434 - - -
Charges for services - - 60,584 - -
Miscellaneous - - - - -
Interest earned on investments (699) (394) (615) - 1,481 Total revenues 794,040 460,391 59,969 - 339,413
EXPENDITURES:

Current:

General government - - 1,830 - -
Public safety - - - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works 594,083 - - - -
Capital outlay - 4,070 - - -
Debt service:

Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 4,070 594,083 1,830 - -

REVENUES OVER
(UNDER) EXPENDITURES (133,692) 789,970 58,139 - 339,413

OTHER FINANCING
SOURCES (USES):

Transfers in 291,002 - - - -
Transfers out (11,054) (360,763) - (20,557) -
Total other financing
sources (uses) (360,763) 279,948 - (20,557) -
CHANGE IN FUND BALANCES 429,207 146,256 58,139 (20,557) 339,413 Fund balances, beginning of year,
as restated 15,850 514,785 118,808 14,360 1,405,161
Fund balances (deficits), end of year 162,106 $ 943,992 $ 176,947 $ (6,197) $ 1,744,574 $

CITY OF HERMOSA BEACH
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances Special Revenue Funds
99 217
Parks/ Bayview Myrtle Loma
Recreation Drive District District
Tyco Facilities Administrative Administrative Administrative Tidelands Tax Expense Expense Expense
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - 7,902 - - -
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - - -
Charges for services - 106,808 - - -
Miscellaneous - - 4,500 - -
Interest earned on investments - 513 17 - -
Total revenues 115,223 - 4,517 - -
EXPENDITURES:

Current:

General government - - 1,725 - 59
Public safety - - - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay - 25,250 - - -
Debt service:

Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 25,250 - 1,725 - 59

REVENUES OVER
(UNDER) EXPENDITURES 89,973 - 2,792 - (59)

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out - - (2,307) - (34)
Total other financing
sources (uses) - - (2,307) - (34)
CHANGE IN FUND BALANCES 89,973 - 485 - (93)
Fund balances, beginning of year,
as restated 18 355,925 3,888 (111) -
Fund balances (deficits), end of year 18 $ 445,898 $ 4,373 $ (111) $ (93) $ Special Revenue Funds

CITY OF HERMOSA BEACH
Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) 100 218
Beach Drive Air Supplemental
Assessment Quality Law
District Proposition Measure Management Enforcement
Admin Expense "C" "R" District Services
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - 331,225 248,763 - 127,250
Fines and forfeitures - - - - -
Use of money and property - - - - -
Intergovernmental - - - 25,612 -
Charges for services - - - - -
Miscellaneous 3,500 - - - -
Interest earned on investments 8 1,199 145 166 908
Total revenues 332,424 3,508 248,908 25,778 128,158
EXPENDITURES:

Current:

General government 1,412 - - 17,421 -
Public safety - - - - 88,804
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay - - - - 33,475
Debt service:

Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures - 1,412 - 17,421 122,279

REVENUES OVER
(UNDER) EXPENDITURES 332,424 2,096 248,908 8,357 5,879

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out (1,891) - - - -
Total other financing
sources (uses) - (1,891) - - -
CHANGE IN FUND BALANCES 332,424 205 248,908 8,357 5,879 Fund balances, beginning of year,
as restated 3,256 1,061,016 279,025 76,277 339,327
Fund balances (deficits), end of year 3,461 $ 1,393,440 $ 527,933 $ 84,634 $ 345,206 $ Special Revenue Funds

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
101 219
Asset
Seizure RTI
and Fire Measure Undersea
Forfeiture Protection CDBG "M" Cable
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - - - 281,857 -
Fines and forfeitures 3,774 - - - -
Use of money and property - - - - 376,500
Intergovernmental - - - - -
Charges for services - 41,018 - - -
Miscellaneous - - - - -
Interest earned on investments 1,361 (69) - (796) 821
Total revenues 40,949 5,135 - 281,061 377,321
EXPENDITURES:

Current:

General government - - - - -
Public safety 5,028 43,062 - - -
Community development - - - - -
Culture and recreaction - - - - -
Public works - - - - -
Capital outlay 374 - 1,479 - -
Debt service:

Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 43,062 5,402 1,479 - -

REVENUES OVER
(UNDER) EXPENDITURES (2,113) (267) (1,479) 281,061 377,321

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses) - - - - -
CHANGE IN FUND BALANCES (2,113) (267) (1,479) 281,061 377,321 Fund balances, beginning of year,
as restated 637,080 28,888 4,671 78,134 470,817
Fund balances (deficits), end of year 636,813 $ 26,775 $ 3,192 $ 359,195 $ 848,138 $ Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds

CITY OF HERMOSA BEACH
102 220
RTI
Undersea
Cable Proposition CARES Measure
Tidelands "A" Transit Grants Act "W"
REVENUES:

Property taxes - $ - $ - $ - $ - $
Other taxes - 399,324 - - 157,164
Fines and forfeitures - - - - -
Use of money and property 192,000 - - - -
Intergovernmental - - 91,773 292,920 -
Charges for services - 941 - - -
Miscellaneous - - 18,973 - -
Interest earned on investments 637 93 - - (45)
Total revenues 400,358 192,637 110,746 292,920 157,119
EXPENDITURES:

Current:

General government - 24 69,430 - -
Public safety - 17,317 9,595 - -
Community development - 33,645 82,041 - -
Culture and recreaction - 12,200 - - -
Public works - - 34,484 - -
Capital outlay - - 109,861 - 137,500
Debt service:

Interest and fiscal charges - - - - -
Cost of issuance - - - - -
Total expenditures 63,186 - 305,411 - 137,500

REVENUES OVER
(UNDER) EXPENDITURES 337,172 192,637 (194,665) 292,920 19,619

OTHER FINANCING
SOURCES (USES):

Transfers in - - - - -
Transfers out - - - - -
Total other financing
sources (uses) - - - - -
CHANGE IN FUND BALANCE 337,172 192,637 (194,665) 292,920 19,619 Fund balances, beginning of year,
as restated 257,034 407,358 228,720 - -
Fund balances (deficits), end of year 449,671 $ 744,530 $ 34,055 $ 292,920 $ 19,619 $

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
103 221
Capital Debt
Project Service
Fund Fund
Total
2015 Lease Nonmajor
Storm Greenwich Revenue Governmental
Sewer Drain Underground Bonds Funds
REVENUES:

Property taxes - $ - $ - $ - $ 461,090 $
Other taxes - 700,000 - - 2,253,485
Fines and forfeitures - - - - 3,774
Use of money and property - - 120,898 - 1,027,330
Intergovernmental 17,469 - - - 1,222,208
Charges for services 1,281,614 - - - 1,490,965
Miscellaneous - - - - 26,973
Interest earned on investments 16,828 10,104 - - 31,663 Total revenues 1,315,911 710,104 120,898 - 6,517,488
EXPENDITURES:

Current:

General government - - - - 91,901
Public safety - - - - 163,806
Community development - - - - 115,686
Culture and recreaction - - - - 12,200
Public works 380,090 294,897 - - 1,303,554
Capital outlay 129,359 52,442 - - 493,810
Debt service:

Interest and fiscal charges - - - 491,542 491,542
Cost of issuance - - - 229,987 229,987
Total expenditures 509,449 347,339 - 721,529 2,902,486

REVENUES OVER
(UNDER) EXPENDITURES 806,462 362,765 120,898 (721,529) 3,615,002

OTHER FINANCING
SOURCES (USES):

Transfers in - - - 816,634 1,107,636
Transfers out (3,000,000) - - - (3,396,606)
Total other financing
sources (uses) - (3,000,000) - 816,634 (2,288,970)
CHANGE IN FUND BALANCES 362,765 (2,193,538) 120,898 95,105 1,326,032 Fund balances, beginning of year,
as restated 5,327,584 1,733,258 - 118 13,361,247
Fund balances (deficits), end of year 3,134,046 $ 2,096,023 $ 120,898 $ 95,223 $ 14,687,279 $

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenditures and Changes in Fund Balances (Continued) Nonmajor Governmental Funds
For the Year Ended June 30, 2021
Special Revenue Funds
104 222
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 15,850 15,850 $ - $
Revenues (inflows):

Property taxes 454,100 461,090 6,990
Interest earned on investments 123 (699) (822)
Transfers in 291,002 291,002 -
Amount available for appropriations 745,225 751,393 6,168 Charges to appropriations (outflows):

Public works 737,748 594,083 143,665
Transfers out 11,054 11,054 -
Total charges to appropriations 748,802 605,137 143,665 Fund balance, June 30, 2021 12,273 $ 162,106 $ (137,497) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Lighting and Landscaping District Special Revenue Fund
For the Year Ended June 30, 2021
105 223
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 514,785 514,785 $ - $
Revenues (inflows):

Intergovernmental 815,562 794,434 (21,128)
Interest earned on investments 5,271 (394) (5,665)
Amount available for appropriations 820,833 794,040 (26,793) Charges to appropriations (outflows):

Capital outlay 942,627 4,070 938,557
Transfers out 360,763 360,763 -
Total charges to appropriations 1,303,390 364,833 938,557 Fund balance, June 30, 2021 32,228 $ 943,992 $ (965,350) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual State Gas Tax Special Revenue Fund
For the Year Ended June 30, 2021
106 224
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 118,808 118,808 $ - $
Revenues (inflows):

Charges for services 61,528 60,584 (944)
Interest earned on investments 1,398 (615) (2,013)
Amount available for appropriations 62,926 59,969 (2,957) Charges to appropriations (outflows):

General government 19,599 1,830 17,769
Total charges to appropriations 19,599 1,830 17,769
Fund balance, June 30, 2021 162,135 $ 176,947 $ (20,726) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual AB 939 Special Revenue Fund
For the Year Ended June 30, 2021
107 225
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 14,360 14,360 $ - $
Revenues (inflows):

Intergovernmental 51,160 - (51,160)
Amount available for appropriations 51,160 - (51,160)
Charges to appropriations (outflows):

Transfers out 20,557 20,557 -
Total charges to appropriations 20,557 20,557 -
Fund balance (deficit), June 30, 2021 44,963 $ (6,197) $ (51,160) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Prop A Open Space Special Revenue Fund
For the Year Ended June 30, 2021
108 226
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 1,405,161 1,405,161 $ - $
Revenues (inflows):

Use of money and property 348,070 337,932 (10,138)
Interest earned on investments 15,509 1,481 (14,028)
Amount available for appropriations 363,579 339,413 (24,166) Charges to appropriations (outflows):

Capital outlay 1,261,856 - 1,261,856
Total charges to appropriations 1,261,856 - 1,261,856
Fund balance, June 30, 2021 506,884 $ 1,744,574 $ (1,286,022) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Tyco Special Revenue Fund
For the Year Ended June 30, 2021
109 227
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 355,925 355,925 $ - $
Revenues (inflows):

Other taxes - 7,902 7,902
Charges for services 78,616 106,808 28,192
Interest earned on investments 4,074 513 (3,561)
Amount available for appropriations 82,690 115,223 32,533 Charges to appropriations (outflows):

Capital outlay 337,031 25,250 311,781
Total charges to appropriations 337,031 25,250 311,781
Fund balance, June 30, 2021 101,584 $ 445,898 $ (279,248) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Park/Recreation Facilities Tax Special Revenue Fund
For the Year Ended June 30, 2021
110 228
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 3,888 3,888 $ - $
Revenues (inflows):

Miscellaneous 4,500 4,500 -
Interest earned on investments 52 17 (35)
Amount available for appropriations 4,552 4,517 (35)
Charges to appropriations (outflows):

General government 1,400 1,725 (325)
Transfers out 2,307 2,307 -
Total charges to appropriations 3,707 4,032 (325)
Fund balance, June 30, 2021 4,733 $ 4,373 $ 290 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Bayview Drive Administrative Expense Special Revenue Fund For the Year Ended June 30, 2021
111 229
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ - - $ - $
Revenues (inflows):

Interest earned on investments 3 - (3)
Amount available for appropriations 3 - (3)
Charges to appropriations (outflows):

General government - 59 (59)
Transfers out 34 34 -
Total charges to appropriations 34 93 (59)
Fund balance (deficit), June 30, 2021 (31) $ (93) $ 56 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Loma District Administrative Expense Special Revenue Fund For the Year Ended June 30, 2021
112 230
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 3,256 3,256 $ - $
Revenues (inflows):

Miscellaneous 3,500 3,500 -
Interest earned on investments 44 8 (36)
Amount available for appropriations 3,544 3,508 (36)
Charges to appropriations (outflows):

General government 1,550 1,412 138
Transfers out 1,891 1,891 -
Total charges to appropriations 3,441 3,303 138
Fund balance, June 30, 2021 3,359 $ 3,461 $ (174) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Beach Drive District Administrative Expense Special Revenue Fund For the Year Ended June 30, 2021
113 231
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 1,061,016 1,061,016 $ - $
Revenues (inflows):

Other taxes 304,404 331,225 26,821
Interest earned on investments 12,282 1,199 (11,083)
Amount available for appropriations 316,686 332,424 15,738 Charges to appropriations (outflows):

Capital outlay 1,260,000 - 1,260,000
Total charges to appropriations 1,260,000 - 1,260,000
Fund balance, June 30, 2021 117,702 $ 1,393,440 $ (1,244,262) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "C" Special Revenue Fund
For the Year Ended June 30, 2021
114 232
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 279,025 279,025 $ - $
Revenues (inflows):

Other taxes 230,352 248,763 18,411
Miscellaneous 243,000 - (243,000)
Interest earned on investments 4,041 145 (3,896)
Amount available for appropriations 477,393 248,908 (228,485) Charges to appropriations (outflows):

Capital outlay 756,139 - 756,139
Total charges to appropriations 756,139 - 756,139
Fund balance, June 30, 2021 279 $ 527,933 $ (984,624) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "R" Special Revenue Fund
For the Year Ended June 30, 2021
115 233
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 76,277 76,277 $ - $
Revenues (inflows):

Intergovernmental 25,000 25,612 612
Interest earned on investments 625 166 (459)
Amount available for appropriations 25,625 25,778 153
Charges to appropriations (outflows):

General government 48,000 17,421 30,579
Total charges to appropriations 48,000 17,421 30,579
Fund balance, June 30, 2021 53,902 $ 84,634 $ (30,426) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Air Quality Management District Special Revenue Fund
For the Year Ended June 30, 2021
116 234
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 339,327 339,327 $ - $
Revenues (inflows):

Other taxes 102,246 127,250 25,004
Interest earned on investments 3,912 908 (3,004)
Amount available for appropriations 106,158 128,158 22,000 Charges to appropriations (outflows):

Public safety 107,611 88,804 18,807
Capital outlay 33,993 33,475 518
Total charges to appropriations 141,604 122,279 19,325
Fund balance, June 30, 2021 303,881 $ 345,206 $ 2,675 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Supplemental Law Enforcement Services Special Revenue Fund For the Year Ended June 30, 2021
117 235
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 637,080 637,080 $ - $
Revenues (inflows):

Fines and forfeitures 3,774 3,774 -
Interest earned on investments 6,932 1,361 (5,571)
Amount available for appropriations 10,706 5,135 (5,571) Charges to appropriations (outflows):

Public safety 63,393 5,028 58,365
Capital outlay 1,041 374 667
Total charges to appropriations 64,434 5,402 59,032
Fund balance, June 30, 2021 583,352 $ 636,813 $ (64,603) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Asset Seizure and Forfeiture Special Revenue Fund
For the Year Ended June 30, 2021
118 236
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 28,888 28,888 $ - $
Revenues (inflows):

Charges for services 35,000 41,018 6,018
Interest earned on investments 262 (69) (331)
Amount available for appropriations 35,262 40,949 5,687 Charges to appropriations (outflows):

Public safety 43,062 43,062 -
Total charges to appropriations 43,062 43,062 -
Fund balance, June 30, 2021 21,088 $ 26,775 $ 5,687 $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Fire Protection Special Revenue Fund
For the Year Ended June 30, 2021
119 237
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 4,671 4,671 $ - $
Revenues (inflows):

Intergovernmental 130,337 - (130,337)
Amount available for appropriations 130,337 - (130,337) Charges to appropriations (outflows):

Capital outlay 135,008 1,479 133,529
Total charges to appropriations 135,008 1,479 133,529
Fund balance, June 30, 2021 - $ 3,192 $ (263,866) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Community Development Block Grant Special Revenue Fund
For the Year Ended June 30, 2021
120 238
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 78,134 78,134 $ - $
Revenues (inflows):

Other taxes 261,747 281,857 20,110
Interest earned on investments 1,730 (796) (2,526)
Amount available for appropriations 263,477 281,061 17,584 Charges to appropriations (outflows):

Capital outlay 339,572 - 339,572
Total charges to appropriations 339,572 - 339,572
Fund balance, June 30, 2021 2,039 $ 359,195 $ (321,988) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Measure "M" Special Revenue Fund
For the Year Ended June 30, 2021
121 239
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 470,817 470,817 $ - $
Revenues (inflows):

Use of money and property 361,000 376,500 15,500
Interest earned on investments 6,470 821 (5,649)
Amount available for appropriations 367,470 377,321 9,851 Charges to appropriations (outflows):

Capital outlay 828,952 - 828,952
Total charges to appropriations 828,952 - 828,952
Fund balance, June 30, 2021 9,335 $ 848,138 $ (819,101) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual RTI Undersea Cable Special Revenue Fund
For the Year Ended June 30, 2021
122 240
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 257,034 257,034 $ - $
Revenues (inflows):

Use of money and property 184,000 192,000 8,000
Interest earned on investments 3,597 637 (2,960)
Amount available for appropriations 187,597 192,637 5,040 Charges to appropriations (outflows):

Capital outlay 440,000 - 440,000
Total charges to appropriations 440,000 - 440,000
Fund balance, June 30, 2021 4,631 $ 449,671 $ (434,960) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual RTI Undersea Cable Tidelands Special Revenue Fund
For the Year Ended June 30, 2021
123 241
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 407,358 407,358 $ - $
Revenues (inflows):

Other taxes 366,972 399,324 32,352
Charges for services 728 941 213
Interest earned on investments 5,458 93 (5,365)
Amount available for appropriations 373,158 400,358 27,200 Charges to appropriations (outflows):

General government 1,700 24 1,676
Public safety 65,000 17,317 47,683
Community development 40,596 33,645 6,951
Culture and recreation 91,000 12,200 78,800
Capital outlay - - -
Total charges to appropriations 198,296 63,186 135,110
Fund balance, June 30, 2021 582,220 $ 744,530 $ (107,910) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Proposition "A" Transit Special Revenue Fund
For the Year Ended June 30, 2021
124 242
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020, as restated $ 228,720 228,720 $ - $ Revenues (inflows):

Intergovernmental 903,836 91,773 (812,063)
Miscellaneous 303,706 18,973 (284,733)
Amount available for appropriations 1,207,542 110,746 (1,096,796) Charges to appropriations (outflows):

General government 254,550 69,430 185,120
Public safety 14,870 9,595 5,275
Community development 101,656 82,041 19,615
Public works 160,000 34,484 125,516
Capital outlay 817,956 109,861 708,095
Total charges to appropriations 1,349,032 305,411 1,043,621 Fund balance (deficit), June 30, 2021 87,230 $ 34,055 $ (2,140,417) $

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Grants Special Revenue Fund For the Year Ended June 30, 2021
125 243
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ - - $ - $
Revenues (inflows):

Other taxes 160,000 157,164 (2,836)
Interest earned on investments 19 (45) (64)
Amount available for appropriations 160,019 157,119 (2,900) Charges to appropriations (outflows):

Capital outlay 140,000 137,500 2,500
Total charges to appropriations 140,000 137,500 2,500
Fund balance, June 30, 2021 20,019 $ 19,619 $ (5,400) $

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Measure "W" Special Revenue Fund For the Year Ended June 30, 2021
126 244
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 5,327,584 5,327,584 $ - $
Revenues (inflows):

Intergovernmental 13,475 17,469 3,994
Charges for services 1,102,945 1,281,614 178,669
Interest earned on investments 56,649 16,828 (39,821)
Amount available for appropriations 1,173,069 1,315,911 142,842 Charges to appropriations (outflows):

Public works 491,362 380,090 111,272
Capital outlay 2,472,822 129,359 2,343,463
Transfers out 3,000,000 3,000,000 -
Total charges to appropriations 5,964,184 3,509,449 2,454,735 Fund balance, June 30, 2021 536,469 $ 3,134,046 $ (2,311,893) $

CITY OF HERMOSA BEACH
Required Supplementary Information (Unaudited) (Continued) Budgetary Comparison Schedule - Sewer Special Revenue Fund For the Year Ended June 30, 2021
127 245
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 1,733,258 1,733,258 $ - $
Revenues (inflows):

Other taxes - 700,000 700,000
Interest earned on investments 20,058 10,104 (9,954)
Transfers in 700,000 - (700,000)
Amount available for appropriations 720,058 710,104 (9,954) Charges to appropriations (outflows):

Public works 437,260 294,897 142,363
Capital outlay 1,975,287 52,442 1,922,845
Total charges to appropriations 2,412,547 347,339 2,065,208 Fund balance, June 30, 2021 40,769 $ 2,096,023 $ (2,075,162) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Budgetary Comparison Schedule - Storm Drain Special Revenue Fund For the Year Ended June 30, 2021
128 246
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 118 118 $ - $
Revenues (inflows):

Transfers in 785,699 816,634 30,935
Amount available for appropriations 785,699 816,634 30,935 Charges to appropriations (outflows):

Principal 500,000 - 500,000
Interest and fiscal charges 285,712 491,542 (205,830)
Cost of issuance - 229,987 (229,987)
Total charges to appropriations 785,712 721,529 64,183
Fund balance, June 30, 2021 105 $ 95,223 $ (33,248) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual 2015 Lease Revenue Bond Debt Service Fund
For the Year Ended June 30, 2021
129 247
Budgeted
Amounts Actual Variance with
Final Amounts Final Budget
Fund balance, July 1, 2020 $ 9,269,543 9,269,543 $ - $
Revenues (inflows):

Miscellaneous - 1,350 1,350
Interest earned on investments 109,598 25,494 (84,104)
Transfers in - - -
Amount available for appropriations 109,598 26,844 (82,754) Charges to appropriations (outflows):

General government 219,000 53,167 165,833
Public safety - 379,716 (379,716)
Capital outlay 5,861,650 313,175 5,548,475
Total charges to appropriations 6,080,650 746,058 5,334,592 Fund balance, June 30, 2021 3,298,491 $ 8,550,329 $ (5,417,346) $

CITY OF HERMOSA BEACH
Schedule of Revenues, Expenditures, and Changes in Fund Balances - Budget and Actual Budgetary Comparison Schedule - Capital Improvements Capital Project Fund For the Year Ended June 30, 2021
130 248
This page intentionally left blank.
131 249

INTERNAL SERVICE FUNDS
Insurance Fund - This fund was created to account for costs associated with the City's insurances: liability, workers' compensation, unemployment, auto, property and officials' bonds and settlement losses.

Equipment Replacement Fund - This fund was created to provide ongoing funds to replace assets at the end of the assets' useful life.
132 250
Equipment
Insurance Replacement
Fund Fund Total
ASSETS
Current assets:

Cash and investments 7,550,433 $ 5,322,177 $ 12,872,610 $ Account receivables 65 1 66
Other assets 1,800 - 1,800
Total current assets 7,550,498 5,323,978 12,874,476
Noncurrent assets:

Nondepreciable capital assets - 365,074 365,074
Depreciable capital assets, net of accumulated depreciation - 3,176,233 3,176,233 Total noncurrent assets - 3,541,307 3,541,307
Total assets 8,865,285 7,550,498 16,415,783

LIABILITIES
Current liabilities:

Accounts payable 68,411 59,677 128,088
Accrued wages and benefits payable 5,541 12,047 17,588
Workers' compensation claims payable - due within one year 876,000 - 876,000 General liability claims payable - due within one year 414,000 - 414,000 Compensated absences - due within one year 4,530 - 4,530 Total current liabilities 1,368,482 71,724 1,440,206
Long-term liabilities:

Workers' compensation claims payable - due in more than one year 4,127,237 - 4,127,237 General liability claims payable - due in more than one year 951,669 - 951,669 Total long-term liabilities 5,078,906 - 5,078,906
Total liabilities 71,724 6,447,388 6,519,112

NET POSITION
Net investment in capital assets - 3,541,307 3,541,307
Unrestricted 1,103,110 5,252,254 6,355,364
Total net position $ 8,793,561 1,103,110 $ 9,896,671 $

CITY OF HERMOSA BEACH
Combining Statement of Net Position
All Internal Service Funds
June 30, 2021
133 251
Equipment
Insurance Replacement
Fund Fund Total
OPERATING REVENUES:

Charges for services 2,750,236 $ 1,956,104 $ 4,706,340 $ Miscellaneous revenue 30,007 3,750 33,757
Total operating revenues 1,959,854 2,780,243 4,740,097
OPERATING EXPENSES:

Salaries and wages 126,852 241,555 368,407
Contract services 1,477,969 720,025 2,197,994
Supplies - 311,057 311,057
Claims expense 2,716,103 - 2,716,103
Depreciation - 639,550 639,550
Total operating expenses 1,912,187 4,320,924 6,233,111
OPERATING INCOME 47,667 (1,540,681) (1,493,014)
NON-OPERATING REVENUES (EXPENSES):

Gain on disposal of capital assets - 868 868
Total non-operating revenues (expenses) 868 - 868
Change in net position 48,535 (1,540,681) (1,492,146)
Net position, beginning of year 2,643,791 8,745,026 11,388,817 Net position, end of year 1,103,110 $ 8,793,561 $ 9,896,671 $

CITY OF HERMOSA BEACH
Combining Statement of Revenues, Expenses, and Changes in Net Position All Internal Service Funds
For the year ended June 30, 2021
134 252
Equipment
Insurance Replacement
Fund Fund Total
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received for services from other funds 2,750,236 $ 1,956,104 $ 4,706,340 $ Cash received from insurance recovery 30,007 - 30,007
Cash payments to suppliers for goods and services (1,556,962) (1,159,865) (2,716,827) Cash payments to employees for services (119,920) (222,136) (342,056) Cash payments for insurance premiums and claims (2,257,858) - (2,257,858) Net cash provided (used by) operating activities 574,103 (1,154,497) (580,394) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets - (703,304) (703,304)
Proceeds from sale of capital assets - 1,322 1,322
Net cash provided (used by) capital and related financing activities (701,982) - (701,982) Net increase (decrease) in cash and cash equivalents (1,154,497) (127,879) (1,282,376) Cash and equivalents, beginning of year 8,704,930 5,450,056 14,154,986 Cash and equivalents, end of year 7,550,433 $ 5,322,177 $ 12,872,610 $

RECONCILIATION OF OPERATING INCOME (LOSS) TO
NET CASH (USED BY) OPERATING ACTIVITIES:

Operating income (loss) (1,540,681) $ 47,667 $ (1,493,014) $ Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation - 639,550 639,550
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (65) 4,111 4,046 Increase (decrease) in accounts payable (78,993) (98,076) (177,069) Increase (decrease) in accrued wages and benefits payable (2,402) (2,675) (5,077) Increase (decrease) in workers' compensation claims payable 325,905 - 325,905 Increase (decrease) in general liability claims payable 146,269 - 146,269 Increase (decrease) in compensated absences (4,530) (16,474) (21,004) Total adjustments 386,184 526,436 912,620
Net cash provided (used) by operating activities $ 574,103 (1,154,497) $ (580,394) $

CITY OF HERMOSA BEACH
Combining Statement of Cash Flows
All Internal Service Funds
For the year ended June 30, 2021
135 253

FIDUCIARY FUND

FINANCIAL STATEMENTS
The Agency Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 136 254
Lower Pier
Avenue Beach Drive
Assessment Assessment
Bayview Drive Bayview Drive District District
Redemption Reserve Redemption Redemption
Cash and investments 121,011 $ 15,284 3,261 54,845
Interest receivable 88 11 2 40
Other accounts receivable 685 - - 967
Total assets $ 15,295 121,784 3,263 55,852
Installment account 121,784 $ 5,295 3,263 55,852
Reserve requirement - 10,000 - -
Total liabilities $ 15,295 121,784 3,263 55,852
ASSETS

LIABILITIES
June 30, 2021

CITY OF HERMOSA BEACH
Combining Statement of Fiduciary Net Position
All Custodial Funds
137 255
Myrtle Avenue Loma Drive
Beach Drive Utility Utility
Assessment Undergrounding Undergrounding
District Assessment Assessment
Reserve District District Total
Cash and investments 4,688 $ 50,758 90,230 340,077
Interest receivable 3 - - 144
Other accounts receivable - 162 - 1,814
Total assets $ 4,691 50,920 90,230 342,035
Installment account 1,691 $ 50,920 90,230 329,035
Reserve requirement 3,000 - - 13,000
Total liabilities $ 50,920 4,691 90,230 342,035
ASSETS

LIABILITIES
June 30, 2021

CITY OF HERMOSA BEACH
Combining Statement of Fiduciary Net Position (Continued) All Custodial Funds
138 256

STATISTICAL SECTION
139 257

STATISTICAL SECTION
This part of the City of Hermosa Beach's annual comprehensive financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures and required supplementary information says about the government' overall financial health.

Contents Pages
Financial Trends 141-146
These schedules contain trend information to help the reader understand how the government's financial performance and well being have changed over time.

Revenue Capacity 147-153
These schedules contain information to help the reader assess the government's most significant local revenue source, the property tax.

Debt Capacity 154-165
These schedules present information to help the reader assess the affordability of the government's current levels of outstanding debt and the government's ability to issue additional debt in the future.

Demographic and Economic Information 166-168
These schedules offer demographic and economic indicators to help the reader understand the environment within which the government's financial activities take place.

Operating Information 169-170
These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs.
140 258
2012 2013 2014 2015 2016
Governmental activities:

Net investment in capital assets 65,518,736 $ 64,135,741 $ 64,828,005 $ 66,733,301 $ 66,933,796 $ Restricted 3,860,192 4,050,722 4,476,554 4,188,404 3,774,552 Unrestricted 10,589,507 17,294,405 22,988,231 (24,869,037) (18,769,530) Total governmental activities net assets 79,968,435 $ 85,480,868 $ 92,292,790 $ 46,052,668 $ 51,938,818 $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $ - $
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net assets - $ - $ - $ - $ - $ Primary government:

Net investment in capital assets 65,518,736 $ 64,135,741 $ 64,828,005 $ 66,733,301 $ 66,933,796 $ Restricted 3,860,192 4,050,722 4,476,554 4,188,404 3,774,552 Unrestricted 10,589,507 17,294,405 22,988,231 (24,869,037) (18,769,530) Total primary government net assets 79,968,435 $ 85,480,868 $ 92,292,790 $ 46,052,668 $ 51,938,818 $

1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012.

Fiscal Year
Last Ten Fiscal Years
(accrual basis of accounting)

CITY OF HERMOSA BEACH
Net Assets by Component
141 259
2017 2018 2019 2020 2021
Governmental activities:

Net investment in capital assets 66,417,072 $ 66,333,070 $ 64,375,911 $ 66,556,499 $ 65,145,247 $ Restricted 5,260,908 5,584,794 5,056,977 6,399,646 8,376,641 Unrestricted (13,287,058) (10,942,703) (8,841,583) (12,400,420) (13,440,076) Total governmental activities net assets 58,390,922 $ 60,975,161 $ 60,591,305 $ 60,555,725 $ 60,081,812 $ Business-type activities:

Net investment in capital assets - $ - $ - $ - $ - $
Restricted - - - - -
Unrestricted - - - - -
Total business-type activities net assets - $ - $ - $ - $ - $ Primary government:

Net investment in capital assets 66,417,072 $ 66,333,070 $ 64,375,911 $ 66,556,499 $ 65,145,247 $ Restricted 5,260,908 5,584,794 5,056,977 6,399,646 8,376,641 Unrestricted (13,287,058) (10,942,703) (8,841,583) (12,400,420) (13,440,076) Total primary government net assets 58,390,922 $ 60,975,161 $ 60,591,305 $ 60,555,725 $ 60,081,812 $

1. The Downtown Enhancement Fund was combined with the General Fund at the end of June 30, 2012. (accrual basis of accounting) (Continued)
Fiscal Year

CITY OF HERMOSA BEACH
Net Assets by Component
Last Ten Fiscal Years
142 260
2012 2013 2014 2015 2016
Expenses:

Governmental activities:

Legislative and legal 4,677,233 $ 881,556 $ 1,076,211 $ 1,293,214 $ 2,083,297 $ General government 2,376,929 2,458,548 2,827,895 3,078,044 2,262,107 Public safety 18,179,929 16,431,962 16,856,166 16,737,044 20,034,932 Community development 1,235,058 1,260,996 1,519,632 1,710,563 1,347,087 Culture and recreation 1,037,790 1,087,000 1,068,388 1,257,311 1,108,749 Public works 7,239,076 7,529,499 7,420,724 6,985,762 9,131,490 Interest and fiscal charges - - - - -
Total governmental activities expenses 34,746,015 29,649,561 30,769,016 31,061,938 35,967,662 Business-type activities:

Downtown Enhancement 906,244 - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses 906,244 - - - - Total primary government expenses 35,652,259 29,649,561 30,769,016 31,061,938 35,967,662 Program revenues:

Governmental activities:

Charges for services:

General government 555,607 2,275,297 2,323,797 2,582,857 2,414,955 Public safety 5,112,011 5,282,223 5,455,694 5,398,329 5,254,859 Community development 860,158 1,125,637 1,641,773 1,679,400 1,996,538 Culture and recreation 957,989 1,271,845 1,425,451 1,522,417 1,178,323 Public works 938,822 989,656 892,784 1,085,165 2,217,610 Operating grants and contributions 828,722 702,873 1,106,254 983,628 755,650 Capital grants and contributions 759,889 255,996 260,844 328,649 203,033 Total governmental activities
program revenues: 10,013,198 11,903,527 13,106,597 13,580,445 14,020,968 Business-type activities:

Charges for services:

Downtown Enhancement 1,649,197 - - - -
Parking - - - -
Proposition A Transit - - - -
Proposition C Transit - - - -
Operating grants and contributions - - - -
Capital grants and contributions - - - -
Total business-type activities
program revenues: 1,649,197 - - - -
Total primary government
program revenues: 11,662,395 11,903,527 13,106,597 13,580,445 14,020,968 Last Ten Fiscal Years
(accrual basis of accounting)

CITY OF HERMOSA BEACH
Changes in Net Assets
Fiscal Year
143 261
2012 2013 2014 2015 2016
Net revenues (expenses):

Governmental activities (24,732,817) (17,746,034) (17,662,419) (17,481,493) (21,946,694) Business-type activities 742,953 - - - -
Total net revenues (expenses) (23,989,864) (17,746,034) (17,662,419) (17,481,493) (21,946,694) General revenues and other changes in net assets:

Governmental activities:

Taxes:

Property taxes 11,598,615 12,151,229 12,910,426 13,739,648 15,317,458 Sales tax 2,474,651 2,598,752 2,653,631 2,768,225 2,895,794 Other taxes 6,461,065 6,638,189 6,924,202 7,179,945 7,527,467 Grants and contributions not restricted to
specific programs 1,121,380 1,156,589 1,222,808 1,246,419 1,369,042 Investment income 109,571 130,709 141,794 510,668 455,234 Other general revenues 237,670 582,999 621,480 489,740 267,849 Transfers 9,913,975 - - - -
Settlement (Note 14) - - - (14,000,000) -
Total governmental activities 31,916,927 23,258,467 24,474,341 11,934,645 27,832,844 Business-type activities:

Investment income 6,418 - - - -
Other general revenues - - - -
Miscellaneous 4,684 - - - -
Transfers (9,913,975) - - - -
Total business-type activities (9,902,873) - - - -
Total primary government 22,014,054 23,258,467 24,474,341 11,934,645 27,832,844 Changes in net assets
Governmental activities: 7,184,110 5,512,433 6,811,922 (5,546,848) 5,886,150 Business-type activities: (9,159,920) - - - -
Total primary government (1,975,810) $ 5,512,433 $ 6,811,922 $ (5,546,848) $ 5,886,150 $ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006. (accrual basis of accounting) (Continued)
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
144 262
2017 2018 2019 2020 2021
Expenses:

Governmental activities:

Legislative and legal 2,043,740 $ 1,869,599 $ 1,563,872 $ 1,644,044 $ 1,868,411 $ General government 3,598,512 4,129,246 4,257,735 6,023,648 6,183,616 Public safety 18,911,734 25,496,398 21,257,544 25,546,098 26,942,447 Community development 1,787,364 2,264,015 2,054,759 3,215,102 2,725,596 Culture and recreation 1,310,740 1,769,893 1,565,784 1,867,143 1,571,300 Public works 7,957,044 9,176,521 12,847,372 7,515,310 7,272,166 Interest and fiscal charges - - 375,815 295,723 400,465 Total governmental activities expenses 35,609,134 44,705,672 43,922,881 46,107,068 46,964,001 Business-type activities:

Downtown Enhancement - - - - -
Parking
Proposition "A" Transit
Proposition "C" Transit
Total business-type activities expenses - - - - -
Total primary government expenses 35,609,134 44,705,672 43,922,881 46,107,068 46,964,001 Program revenues:

Governmental activities:

Charges for services:

General government 2,433,987 2,538,028 476,403 685,320 650,066 Public safety 4,993,104 4,957,188 3,137,319 4,857,617 4,602,983 Community development 1,664,132 1,691,752 1,735,699 1,532,538 1,494,412 Culture and recreation 1,341,455 1,223,789 974,306 546,379 849,247 Public works 2,374,774 2,292,254 3,426,223 1,426,203 1,578,604 Operating grants and contributions 601,816 517,244 3,505,669 3,419,173 2,640,033 Capital grants and contributions 327,534 27,821 526,421 833,644 45,817 Total governmental activities
program revenues: 13,736,802 13,248,076 13,782,040 13,300,874 11,861,162 Business-type activities:

Charges for services:

Downtown Enhancement - - - - -
Parking - - - - -
Proposition A Transit - - - - -
Proposition C Transit - - - - -
Operating grants and contributions - - - - -
Capital grants and contributions - - - - -
Total business-type activities
program revenues: - - - - -
Total primary government
program revenues: 13,736,802 13,248,076 13,782,040 13,300,874 11,861,162 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006.

CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
145 263
2017 2018 2019 2020 2021
Net revenues (expenses):

Governmental activities (21,872,332) (31,457,596) (30,140,841) (32,806,194) (35,102,839) Business-type activities - - - - -
Total net revenues (expenses) (21,872,332) (31,457,596) (30,140,841) (32,806,194) (35,102,839) General revenues and other changes in net assets:

Governmental activities:

Taxes:

Property taxes 15,714,094 17,097,712 18,640,303 19,584,959 20,966,460 Sales tax 2,816,289 3,151,207 3,133,311 2,722,468 3,192,853 Other taxes 7,930,375 7,878,400 7,107,116 7,134,010 7,233,903 Grants and contributions not restricted to
specific programs 1,304,880 1,315,223 2,346,524 1,829,299 2,490,562 Investment income - - - - -
Other general revenues 564,798 982,343 2,701,560 1,499,878 745,148 Transfers - - - - -
Settlement (Note 14) - - - - -
Total governmental activities 28,330,436 30,424,885 33,928,814 32,770,614 34,628,926 Business-type activities:

Investment income - - - - -
Other general revenues - - - - -
Miscellaneous - - - - -
Transfers - - - - -
Total business-type activities - - - - -
Total primary government 28,330,436 30,424,885 33,928,814 32,770,614 34,628,926 Changes in net assets
Governmental activities: 6,458,104 (1,032,711) 3,787,973 (35,580) (473,913) Business-type activities: - - - - -
Total primary government 6,458,104 $ (1,032,711) $ 3,787,973 $ (35,580) $ (473,913) $ 1 Transit operations were transferred to special revenue funds in fiscal year 2005. 2 The Parking Fund was combined with the General Fund in fiscal year 2006.

CITY OF HERMOSA BEACH
Changes in Net Assets
Last Ten Fiscal Years
(accrual basis of accounting) (Continued)
Fiscal Year
146 264
1/2 cent
Fiscal Real sales tax
year property extension Transient Utility
ended Property Sales transfer Franchise for public occupancy user's Business June 30 tax tax tax fees safety tax tax license Total
2012 11,639,960 2,474,650 177,555 730,953 180,493 1,884,020 2,495,895 950,803 20,534,329 2013 12,151,229 2,598,752 233,412 752,586 192,175 1,996,174 2,503,265 950,526 21,378,119 2014 12,910,426 2,653,631 290,379 788,694 182,608 2,204,420 2,443,285 1,006,478 22,479,921 2015 13,739,648 2,768,225 312,416 785,935 229,824 2,349,750 2,442,575 1,059,445 23,687,818 2016 15,317,458 2,895,795 320,731 776,316 212,511 2,762,444 2,388,825 1,058,663 25,732,743 2017 15,714,094 2,886,298 345,603 720,338 218,092 3,237,026 2,302,024 1,098,421 26,521,896 2018 17,097,712 3,151,207 326,224 722,316 233,291 3,295,207 2,229,906 1,061,130 28,116,993 2019 18,640,303 3,133,311 272,138 720,853 244,252 3,251,349 2,195,815 1,107,723 29,565,744 2020 19,584,959 2,722,468 313,331 717,191 239,965 2,599,810 2,093,903 1,162,017 29,433,644 2021 20,966,460 3,192,853 453,596 721,090 261,051 2,552,964 2,171,538 1,065,762 31,385,314 (accrual basis of accounting)

CITY OF HERMOSA BEACH
Governmental Activities Tax Revenues By Source
Last Ten Years
147 265
This page intentionally left blank.
148

266
2012 2013 2014 2015 2016
General Fund:

Reserved
Unreserved
Non-spendable 14,271 $ 21,589 $ 10,603 $ 19,444 $ 21,261 $ Restricted 255,200 391,504 410,289 460,304 329,890
Committed 10,592 10,592 28,900 28,900 28,900
Assigned 5,776,500 6,555,423 7,655,210 10,005,040 8,529,250 Unassigned - - - - -
Total general fund 6,056,563 $ 6,979,108 $ 8,105,002 $ 10,513,688 $ 8,909,301 $ All other governmental funds:

Reserved
Unreserved, reported in:

Special revenue funds
Non-spendable 1,500 $ 1,600 $ - 5,835 $
Restricted 3,604,992 3,659,218 $ 4,083,450 3,728,100 $ 3,430,617 Committed 117,415 137,166 432,606 431,716 1,305,276
Assigned 961,251 847,266 2,831,179 7,646,948 11,348,565 Unassigned (24,138) -
Total all other governmental funds 4,685,158 $ 4,643,650 $ 7,348,835 $ 11,806,764 $ 16,066,155 $ Total governmental funds 10,741,721 $ 11,622,758 $ 15,453,837 $ 22,320,452 $ 24,975,456 $ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.

CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
Fiscal Year
149 267
2017 2018 2019 2020 2021
General Fund:

Reserved
Unreserved
Non-spendable 66,700 $ 478,479 $ - $ - $ 560,718 $
Restricted 158,149 170,336 - - 437,326
Committed 1,115,600 1,144,500 - - 1,995,135
Assigned 8,322,103 7,781,460 - - 10,669,958
Unassigned - - 10,514,092 13,122,873 5,834,252
Total general fund 9,662,552 $ 9,574,775 $ 10,514,092 $ 13,122,873 $ 19,497,389 $ All other governmental funds:

Reserved
Unreserved, reported in:

Special revenue funds
Non-spendable 7,083 $ 9,280 $ 2,310 $ - $ 15,179 $
Restricted 5,102,759 7,677,889 5,561,493 6,399,757 9,899,766 Committed 879,008 1,144,884 1,024,954 1,405,179 2,592,712 Assigned 12,706,958 13,068,691 16,241,139 5,327,702 10,646,352 Unassigned - - (111) 9,446,109 (827,043)
Total all other governmental funds 18,695,808 $ 21,900,744 $ 22,829,785 $ 22,578,747 $ 22,326,966 $ Total governmental funds 28,358,360 $ 31,475,519 $ 33,343,877 $ 35,701,620 $ 41,824,355 $ Note: GASB 54 was implemented in year ended June 30, 2011; prior years have no comparable data.

CITY OF HERMOSA BEACH
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
Fiscal Year
150 268
2012 2013 2014 2015 2016
Revenues:

Property taxes 12,056,548 $ 12,618,579 $ 13,368,615 $ 14,198,054 $ 15,113,479 $ Other taxes 9,722,036 10,076,591 10,492,906 10,992,377 11,302,910 Licenses and permits 668,405 783,121 971,336 916,073 1,111,366 Fines and forfeitures 2,475,311 2,416,031 2,781,240 2,652,193 2,412,554 Use of money and property 815,367 1,102,797 1,077,154 1,087,758 965,738 Intergovernmental 1,555,097 896,216 1,350,674 1,290,849 949,255 Charges for services 4,301,971 6,312,731 6,722,773 7,318,409 8,130,681 Miscellaneous 198,858 469,725 630,271 688,047 679,937
Interest earned on investments 109,186 131,749 137,909 244,026 445,260 Total revenues 31,902,779 34,807,540 37,532,878 39,387,786 41,111,180 Expenditures
Current:

Legislative and legal 1,170,820 893,460 1,093,518 1,170,229 1,958,940 General government 2,293,402 2,550,162 2,806,176 3,040,426 3,458,191 Public safety 16,604,695 16,926,014 17,768,720 18,142,958 21,272,474 Community development 1,177,696 1,279,999 1,548,185 1,722,513 1,806,130 Culture and recreation 989,265 1,110,456 1,132,849 1,246,532 1,291,808 Public works 3,852,318 4,946,423 5,216,430 5,317,541 6,622,698 Capital outlay 2,414,507 1,813,990 2,774,016 3,620,185 2,953,123 Debt service:

Cost of issuance n/a n/a n/a n/a -
Principal n/a n/a n/a n/a -
Interest n/a n/a n/a n/a 233,425
Total expenditures 28,502,703 29,520,504 32,339,894 34,260,384 39,363,364 Excess (deficiency) of revenues
over (under) expenditures 3,400,076 5,287,036 5,192,984 5,127,402 1,747,816 Other financing sources (uses)
Proceeds from sale of assets 2,360 - - - 11,799,905
Transfers in 1,911,100 1,381,842 3,905,349 6,911,913 5,733,408 Transfers out (4,641,769) (5,787,841) (5,267,254) (5,172,700) (16,392,700) Total other financing
sources (uses) (2,728,309) (4,405,999) (1,361,905) 1,739,213 1,140,613 Net change in fund balances 671,767 $ 881,037 $ 3,831,079 $ 6,866,615 $ 2,888,429 $ Debt service as a percentage of
noncapital expenditures 0.0% 0.0% 0.0% 0.0% 0.6%
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting)
151 269
2017 2018 2019 2020 2021
Revenues:

Property taxes 16,209,008 $ 17,530,492 $ 18,565,796 $ 19,573,354 $ 20,968,403 $ Other taxes 11,821,528 12,248,900 12,306,567 11,188,808 11,972,339 Licenses and permits 967,956 1,055,631 850,059 729,622 904,362 Fines and forfeitures 2,122,335 2,809,367 2,373,432 2,237,802 2,133,603 Use of money and property 1,047,084 1,340,018 1,952,941 1,069,049 1,542,571 Intergovernmental 1,031,191 358,523 1,062,434 1,333,882 1,324,163 Charges for services 8,412,322 9,259,210 8,303,529 7,346,217 7,543,716 Miscellaneous 540,021 249,152 634,114 673,546 196,138
Interest earned on investments 6,175 152,359 1,380,012 1,173,125 10,289 Total revenues 42,157,620 45,003,652 47,428,884 45,325,405 46,595,584 Expenditures
Current:

Legislative and legal 1,448,509 1,313,261 1,499,065 1,300,018 1,474,436 General government 3,722,659 3,751,020 4,274,743 4,850,826 4,882,989 Public safety 21,392,637 21,468,409 22,087,381 21,604,659 22,155,535 Community development 1,869,018 2,034,235 2,063,502 2,601,067 2,177,790 Culture and recreation 1,395,915 1,446,996 1,600,519 1,587,893 1,338,693 Public works 6,106,648 6,343,525 6,756,773 6,685,858 6,581,335 Capital outlay 1,644,253 2,164,817 6,058,710 4,863,984 853,530 Debt service:

Cost of issuance - - - - 229,987
Principal 335,000 434,992 460,000 480,000 -
Interest 375,332 355,738 332,497 310,107 491,542
Total expenditures 38,289,971 39,312,993 45,133,190 44,284,412 40,185,837 Excess (deficiency) of revenues
over (under) expenditures 3,867,649 5,690,659 2,295,694 1,040,993 6,409,747 Other financing sources (uses)
Proceeds from sale of assets - - - - -
Transfers in 1,942,014 1,271,842 4,155,801 3,930,602 4,504,242 Transfers out (2,356,750) (3,915,326) (4,583,137) (2,613,852) (4,504,242) Total other financing
sources (uses) (414,736) (2,643,484) (427,336) 1,316,750 - Net change in fund balances 3,452,913 $ 3,047,175 $ 1,868,358 $ 2,357,743 $ 6,409,747 $ Debt service as a percentage of
noncapital expenditures 2.0% 2.2% 2.1% 2.1% 1.9%
Fiscal Year

CITY OF HERMOSA BEACH
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(modified accrual basis of accounting) (Continued)
152 270
Fiscal Real
year property Transient Utility
ended Property Sales transfer Franchise occupancy user's June 30 tax tax tax fees tax tax Other Total
2012 12,056,548 2,474,650 177,555 730,954 1,884,020 2,495,895 1,958,962 21,778,584 2013 12,618,579 2,598,752 233,412 752,586 1,996,174 2,503,265 1,992,402 22,695,170 2014 13,368,615 2,653,631 290,379 788,694 2,204,420 2,443,285 2,112,497 23,861,521 2015 14,198,054 2,768,225 312,416 785,935 2,349,750 2,442,575 2,333,476 25,190,431 2016 15,113,479 2,895,794 320,731 776,316 2,762,444 2,388,824 2,290,061 26,547,649 2017 16,209,008 2,886,298 345,603 720,338 3,237,026 2,302,024 2,330,238 28,030,538 2018 17,530,492 3,151,207 326,224 722,316 3,295,207 2,229,906 2,524,040 29,779,392 2019 18,565,796 3,133,311 272,138 720,853 3,251,349 1,495,815 3,433,101 30,872,363 2020 19,573,354 2,722,468 313,331 717,191 2,599,810 2,093,903 2,742,105 30,762,162 2021 20,968,403 3,192,853 453,596 721,090 2,552,964 2,171,538 3,580,298 33,640,742 (modified accrual basis of accounting)

CITY OF HERMOSA BEACH
General Government Tax Revenues By Source
Last Ten Fiscal Years
153 271
Fiscal Total Estimated
year Total taxable direct actual
ended Residential Commercial Industrial Less assessed tax taxable Percentage June 30 property property property Other exemptions value rate value increase 2012 4,479,178 407,825 11,156 92,987 (46,205) 4,944,941 1.00 4,991,146 1.70% 2013 4,608,192 422,855 11,853 96,628 (46,338) 5,093,190 1.00 5,139,528 3.00% 2014 4,883,870 437,214 10,379 95,294 (47,030) 5,379,750 1.00 5,332,719 5.63% 2015 5,181,815 455,035 12,635 104,834 (43,278) 5,711,045 1.00 5,667,767 6.16% 2016 5,522,546 484,979 13,186 111,635 (43,260) 6,089,089 1.00 6,045,828 6.62% 2017 5,994,296 508,160 13,921 120,700 (43,295) 6,593,784 1.00 6,550,489 8.29% 2018 6,432,195 532,168 14,242 145,238 (41,125) 7,082,716 1.00 7,041,591 7.42% 2019 6,837,257 566,389 15,437 162,374 (41,043) 7,540,415 1.00 7,499,372 6.46% 2020 7,218,636 599,922 16,254 181,411 (26,930) 7,989,293 1.00 7,962,363 5.95% 2021 7,682,189 624,581 17,697 149,144 (34,812) 8,459,799 1.00 8,424,987 5.89% NOTE:

Source: Los Angeles County Auditor-Controller
Note: Assessed valuations available from the County of Los Angeles are based on 100% of full value per Section 135 of the California Revenue and Taxation Code.

CITY OF HERMOSA BEACH
Assessed Value and Estimated Actual Value of Taxable Property Last Ten Fiscal Years
(In Thousands)
In 1978, the voters of the State of California passed Proposition 13 which limited taxes to a total maximum rate of 1% based upon the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to a maximum of 2%). With few exceptions, property is only reassessed as a result of new construction activity or at the time it is sold to a new owner. At that point, the property is reassessed based upon the added value of the construction or at the purchase price (market value) or economic value of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above. 154 272
City
direct rate Overlapping rates
El Camino Flood
Fiscal Basic Hermosa Beach Community Los Angeles Control Metropolitan Year rate * School District College District County District Water District Total 2012 1.000000 0.016904 0.016884 - - 0.003700 1.037488
2013 1.000000 0.018550 0.018490 - - 0.003500 1.040540
2014 1.000000 0.017970 0.017498 - - 0.003500 1.038968
2015 1.000000 0.014729 0.017422 - - 0.003500 1.035651
2016 1.000000 0.015746 0.017447 - - 0.003500 1.036693
2017 1.000000 0.014928 0.022942 - - 0.003500 1.041370
2018 1.000000 0.040245 0.021199 - - 0.003500 1.064944
2019 1.000000 0.025942 0.022229 - - 0.003500 1.051671
2020 1.000000 0.039696 0.021555 - - 0.003500 1.064751
2021 1.000000 0.039111 0.023624 - - 0.003500 1.066235
Source: Los Angeles County Auditor-Controller

CITY OF HERMOSA BEACH
Direct and Overlapping Property Tax Rates
Last Ten Fiscal Years
(rate per $100 of assessed value)
Note: In 1978 California voters passed Proposition 13 which set the property tax rate at a 1.00% fixed amount. The 1.00% is shared by all taxing agencies wherein the subject property resides. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of any voter approved bonds. 155 273
Percent of total
Taxable city taxable
assessed value assessed value
SCEC > AC (1) 85,851,523 $ 1.01%
EQR Gallery Apartments Limited Partnership (1) 76,757,753 0.91% Stand and Pier Hermosa Parent LLC (7) 29,661,859 0.35%
South Bay LLC (7) 27,489,455 0.32%
1601 PCH LP (1) 26,943,911 0.32%
Sailfish Holdings LLC (3) 20,724,294 0.24%
Hermosa Hotel Investments LLC (1) 19,985,594 0.24%
IWF Hotel Hermosa LP (1) 18,373,495 0.22%
Blake Holdings II LLC (1) 18,309,818 0.22%
Kathy Ishii Trust (2) 18,125,453 0.21%
$ 4.04% 342,223,155
Percent of total
Taxable city taxable
assessed value assessed value
$ 1.48% 73,297,264
EQR Gallery Apartments Limited Partnership (1) 58,125,092 1.18% 1601 PCH LP (1) 27,292,872 0.55%
Diana Albergate Trust (5) 25,034,205 0.51%
William Stirton Trust (5) 17,369,670 0.35%
Hermosa Hotel Investments LLC (1) 16,434,756 0.33%
Reg8 Plaza Hermosa LLC (7) 14,377,990 0.29%
Sepulveda Blvd Properties LLC (4) 13,261,671 0.27%
Beta Group (2) 12,415,086 0.25%
Boris LLC (1) 12,372,198 0.25%
$ 5.46% 269,980,804
Source: HdL Coren & Cone, Los Angeles County Assessor Combined Tax Rolls Numbers in parentheses represent the number of parcels owned by the tax payer.

CITY OF HERMOSA BEACH
Principal Property Tax Payers
Current Year and Ten Years ago
Taxpayer
Crico of Fountain Place Limited Partnership (1)
Taxpayer
2012
2021
156 274
Fiscal Taxes levied Collections in
year ended for the Percent subsequent Percent
June 30 fiscal year Amount of levy years Amount of levy 2012 10,477,164 9,971,097 95.17% 9,971,097 95.17%
2013 10,761,548 10,422,088 96.85% 10,422,088 96.85%
2014 11,124,112 10,798,615 97.07% 10,798,615 97.07%
2015 12,081,959 11,805,592 97.71% 11,805,592 97.71%
2016 12,879,664 12,577,259 97.65% 12,577,259 97.65%
2017 13,875,400 13,547,393 97.64% 13,547,393 97.64%
2018 14,957,019 14,575,846 97.45% 14,575,846 97.45%
2019 15,894,003 15,455,825 97.24% 15,455,825 97.24%
2020 16,884,378 16,257,197 96.29% 16,257,197 96.29%
2021 17,849,937 17,293,022 96.88% 17,293,022 96.88%
Source: Los Angeles County Auditor-Controller
fiscal year of levy Total collections to date

CITY OF HERMOSA BEACH
Property Tax Levies and Collections
Last Ten Fiscal Years
Collected within the
157 275
Fiscal
year ended Number of Number of Total assessed
June 30 permits Valuation permits Valuation value
2012 410 15,944,064 82 3,597,461 4,944,940,538
2013 462 24,241,397 56 2,710,750 5,093,189,582
2014 468 36,787,127 69 3,946,450 5,379,750,286
2015 457 39,058,181 52 1,947,535 5,711,045,616
2016 554 44,224,105 68 9,283,387 6,089,089,031
2017 448 37,467,738 40 4,791,924 6,593,783,921
2018 475 30,748,372 44 6,234,344 7,082,716,558
2019 422 40,170,245 38 2,785,223 7,540,414,646
2020 388 31,076,905 43 4,961,480 7,989,293,188
2021 806 24,132,281 63 27,325,785 8,459,798,643
Source: City of Hermosa Beach Community Development Department Los Angeles County Auditor-Controller
Residential Commercial

CITY OF HERMOSA BEACH
Construction Value and Property Value
Last Ten Fiscal Years
158 276
City assessed valuation 8,459,798,643 $
Redevelopment agency incremental valuation -
Total assessed valuation 8,459,798,643 $
Estimated
share of
Percentage Outstanding debt overlapping
applicable 6/30/20 debt
Overlapping debt repaid with property taxes:

West Basin Water District debt service 0.531% 13,101,783 69,592 Hermosa Beach School District debt service 2005 refunding 100.000% 4,193,698 4,193,698 Hermosa Beach School District debt service 2016 A 100.000% 24,130,000 24,130,000 Hermosa Beach School District debt service 2016 B 100.000% 33,180,000 33,180,000 El Camino Community College District 2002 series 2012C 6.661% 142,035,305 9,461,229 El Camino Community College District 2012 refunding 6.661% 12,650,000 842,639 El Camino Community College District 2012 series 2016 A 6.661% 88,475,000 5,893,480 El Camino Community College District 2016 refunding 6.661% 62,850,000 4,186,553 El Camino Community College District 2012 series 2018B 6.661% 45,610,000 3,038,165 El Camino Community College District 2012 series 2020C 6.661% 90,465,000 6,026,038 Total overlapping debt repaid with property taxes 516,690,786 $ 91,021,394 City direct debt:
2020 Lease Revenue Bonds (including premiums) 9,721,058 $ Total City direct debt 9,721,058
Total direct and overlapping debt $ 100,742,452
Direct Debt 0.000%
Overlapping Debt 1.080%
Total Debt 1.080%
Source: HdL Coren & Cone
Los Angeles County Assessor's Office
The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

CITY OF HERMOSA BEACH
Direct and Overlapping Debt
June 30, 2021
159 277
This page intentionally left blank.
160

278
2012 2013 2014 2015 2016
Assessed valuation 4,944,940,538 $ 5,093,189,582 $ 5,379,750,286 $ 5,711,045,616 $ 6,089,089,031 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,236,235,135 $ 1,273,297,396 $ 1,344,937,572 $ 1,427,761,404 $ 1,522,272,258 $ Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 185,435,270 $ 190,994,609 $ 201,740,636 $ 214,164,211 $ 228,340,839 $ Total net debt applicable to limit - $ - $ - $ - $ 11,500,000 $ Legal debt margin 185,435,270 $ 190,994,609 $ 201,740,636 $ 214,164,211 $ 239,840,839 $ Total debt applicable to the limit
as a percentage of debt limit 0% 0% 0% 0% 5.3%
valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted.

Source: City of Hermosa Beach Finance Department
County of Los Angeles, Auditor-Controller
California Government Code section 43605 provides for a legal debt limit of 15% Fiscal Year

CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years
161 279
2017 2018 2019 2020 2021
Assessed valuation 6,593,783,921 $ 7,082,716,558 $ 7,540,414,646 $ 7,989,293,188 $ 8,459,798,643 $ Conversion percentage 25% 25% 25% 25% 25%
Adjusted assessed valuation 1,648,445,980 $ 1,770,679,140 $ 1,885,103,662 $ 1,997,323,297 $ 2,114,949,661 $ Debt limit percentage 15% 15% 15% 15% 15%
Debt limit 247,266,897 $ 265,601,871 $ 282,765,549 $ 299,598,495 $ 317,242,449 $ Total net debt applicable to limit 11,265,000 $ 10,830,000 $ 10,370,000 $ 9,890,000 $ 8,150,000 $ Legal debt margin 236,001,897 $ 254,771,871 $ 272,395,549 $ 289,708,495 $ 309,092,449 $ Total debt applicable to the limit
as a percentage of debt limit 4.7% 4.3% 3.8% 3.4% 2.6%
valuation. This provision was enacted when assessed valuation was based on 25% of market value. Effective fiscal year 1981-82, each parcel was assessed based on 100% of market value as of the most recent change in ownership. The computations shown above convert the assessed valuation data for each fiscal year from the full valuation perspective to the 25% level that was in effect at the time that the legal debt margin was enacted.

Source: City of Hermosa Beach Finance Department
County of Los Angeles, Auditor-Controller
Fiscal Year
California Government Code section 43605 provides for a legal debt limit of 15% of gross assessed

CITY OF HERMOSA BEACH
Legal Debt Margin Information
Last Ten Fiscal Years (Continued)
162 280
Fiscal Year Ended
June 30
Lease Revenue
Bonds
Total
Government
Activities
Total Primary
Government
Percentage of
Personal
Income1
Per Capita
Debt2
2012 - - - N/A -
2013 - - - N/A -
2014 - - - N/A -
2015 - - - N/A -
2016 11,464,040 $ 11,464,040 $ 11,464,040 $ 0.97% 579
2017 11,008,280 $ 11,008,280 $ 11,008,280 $ 1.01% 561
2018 10,537,892 $ 10,537,892 $ 10,537,892 $ 1.15% 536
2019 10,047,508 $ 10,047,508 $ 10,047,508 $ 1.24% 506
2020 9,537,124 $ 9,537,124 $ 9,537,124 $ 1.43% 486
2021 9,721,058 $ 9,721,058 $ 9,721,058 $ 1.47% 500
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements 1 This ratio is calculated using the median household income for the prior calendar year. 2 This ratio is calculated using the population total as of January 1 of the calendar year.

Governmental Acitvities

CITY OF HERMOSA BEACH
Ratios of Outstanding Debt by Type
Last Ten Calendar Years
163 281
Fiscal Year Ended
June 30
Lease Revenue
Bonds Total
Percent Assessed
Value1 Per Capita
2012 - - - -
2013 - - - -
2014 - - - -
2015 - - - -
2016 11,464,040 $ 11,464,040 $ 53.11% 579
2017 11,008,280 $ 11,008,280 $ 59.90% 561
2018 10,537,892 $ 10,537,892 $ 67.21% 536
2019 10,047,508 $ 10,047,508 $ 75.05% 506
2020 9,537,124 $ 9,537,124 $ 83.77% 486
2021 9,721,058 $ 9,721,058 $ 87.03% 500
1 Assessed value has been used because actual value of taxable property is not readily available in the State of California.

CITY OF HERMOSA BEACH
Ratios of General Bonded Debt Outstanding
Last Ten Calendar Years
Outstanding General Bonded Debt
(In thousands, except per capita)
Note: General bonded is debt payable with government fund resources and general obligation bonds recorded in enterprise funds (of which, the City has none).
164 282
This page intentionally left blank.
165

283
Personal income Per capita City per capita Unemployment School Calendar Population (in thousands) personal income personal income rate enrollment Year (1) (2) (2) (3) (4) (5)
2012 19,574 420,913,463 42,564 - 4.9% 1,608
2013 19,653 420,913,463 42,564 - 4.5% 1,710
2014 19,750 466,098,988 46,530 - 3.6% 1,764
2015 19,772 499,767,889 49,400 - 3.1% 1,827
2016 19,801 544,324,900 53,521 - 2.2% 1,765
2017 19,616 563,907,868 55,624 - 1.9% 1,672
2018 19,673 593,741,110 58,419 - 2.2% 1,576
2019 19,847 628,808,732 62,224 - 2.2% 1,568
2020 19,614 653,482,910 65,094 - 10.2% 1,593
2021 19,451 678,829,092 68,272 - 7.0% 1,414
Source:
(1) State of California Department of Finance.
(2) U.S. Department of Commerce, Bureau of Economic Analysis (data shown is for Los Angeles County), which was last updated in 2019.
(3) Personal Income figures for 2008 are from the Internal Revenue Service individual income tax statistics by zip code and for Internal Revenue Service figures are not an ongoing statistical project therefore all years are not available. Census information is available every 10 years, however 2010 information is not yet available. (4) State of California Employment Development Department. (5) State of California Department of Education.

CITY OF HERMOSA BEACH
Demographic and Economic Statistics
Last Ten Calendar Years
166 284
Number of Percent of total
Employer employees employment
Behavior And Education, Inc. 235 5.88%
City of Hermosa Beach 169 4.23%
Lazy Acres 3.13% 125
Von's 3.03% 121
Hermosa Beach School District 90 2.25%
Trader Joe's 2.23% 89
Sunrise Assissted Living 87 2.18%
First Steps for Kids, Inc. 70 1.75%
American Junkie 1.65% 66
Hennessey's Tavern 1.63% 65
Number of Percent of total
Employer employees employment
24 Hour Fitness 4.87% 171
City of Hermosa Beach 148 4.21%
Von's 3.33% 117
Ralph's Grocery 2.99% 105
American Junkie 2.88% 101
First Step for Kids, Inc. 80 2.28%
Hennessey's Tavern 2.22% 78
Shorewood Realtors, Inc. 77 2.19%
Abigaile & Ocean Bar 2.16% 76
Hermosa Beach School District 75 2.14%
Source: City of Hermosa Beach Finance Department
2021
2012

CITY OF HERMOSA BEACH
Principal Employers
Current Year and Ten Years Ago
167 285
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government 13 17 18 20 20 21 21 20 20 20
Public safety 74 74 75 81 82 76 63 64 1 65 1 71
Community development 8 8 8 8 10 11 12 11 12 12
Culture and recreation 3 2 2 3 4 4 4 4 4 4
Public works 17 15 20 17 23 23 21 20 22 22
Total 115 116 123 129 139 135 121 119 122 129
Function 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 General government - - 3 4 6 4 5 10 5 9
Public safety 12 24 13 6 14 5 3 3 1 2 1 1
Community development 1 1 2 3 2 3 2 4 3 2
Culture and recreation 19 26 21 25 27 29 25 40 9 23
Public works 1 2 - 3 1 3 2 3 3 5
Total 33 53 39 41 50 44 37 60 22 40
Source: City of Hermosa Beach Finance Department
1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department.

CITY OF HERMOSA BEACH
Full-time and Part-time City Employees by Function
Last Ten Fiscal Years
Full-time employees as of June 30
Part-time employees as of June 30
168 286
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public safety
Police:

Physical arrests 781 857 945 732 739 615 589 536 389 492 Traffic citations issued 2,290 1,819 3,421 2,406 1,966 1,826 1,408 1,154 498 629 Parking citations issued 68,193 70,678 74,228 65,783 62,957 56,398 57,206 66,029 66,029 59,861 Fire:

Number of emergency calls1 2,488 2,487 2,386 2,467 2,678 2,427 1,965 1,549 2,344 2,506 Inspections2 495 559 657 1,061 540 611 227 - - -
Community development:

Building permits issued 492 462 537 509 622 488 519 460 431 977 3 Culture and recreation:

Number of recreation classes 169 129 134 514 526 498 617 422 4 431 4 598 4 Total enrollment 4,327 4,982 5,464 4,247 4,947 4,817 5,271 5,109 3,050 3,530 Public works:

Graffiti removal 383 408 212 209 200 112 201 148 5 49 5 36 5 Permits issued 718 736 819 904 1,406 1,496 1,617 1,615 2,717 3,482 Source: Various city departments.

Note:
1 Beginning 12/30/17, Fire Services are now provided by Los Angeles Co. Fire Department 2 Fire Department Inspections were done by the City from 7/1/17 through 12/29/17. As of 12/30/17, these inspections are no longer provided by the City.
3 A new software program was to issue permits for the 2020-21 fiscal year. The software does not break down by type of permit issued at this time.
4 A new software program was used for recreation classes after the 2013-14 fiscal year and classes are now counted by date and time rather than grouped.
5 Beginning in 2017-18, Graffit removal reflects the number of services calls due to a change in reporting software. All prior fiscal years reflect graffiti removal hours.

Fiscal Year

CITY OF HERMOSA BEACH
Operating Indicators by Function
Last Ten Fiscal Years
169 287
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Public safety
Police:

Police stations 1 1 1 1111111
Parking meters 1,663 1,663 1,565 1,553 1,553 1,557 1,558 1,558 1,558 1,558 Fire:

Fire stations 1 1 1 1111111
Culture and recreation
Community centers 1 1 1 1111111
Community theatres 1 1 1 1111111
Public works:

Beach (acres) 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 36.5 Greenbelt (acres) 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 19.5 Parks 20 20 20 20 20 20 20 20 20 20
Parks (acres) 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 21.7 Sanitary sewers (miles) 34 34 40 40 40 40 40 40 40 37
Streets (miles) 40 40 40 40 40 40 40 40 40 40
Streetlights 392 392 400 400 400 400 400 400 400 400
Storm drains (miles) 1 1 2 2222222
Traffic Signals 19 19 19 19 19 19 19 19 19 19
Infiltration (miles)2 0.6 0.6 0.6 0.2 0.2 0.2 0.2 0.2 0.2 0.2 Source: City of Hermosa Beach Finance Department
2 This is a system for monitoring the water quality before it reached the Pacific Ocean. The project was funded by a Federal ARRA Grant passed through the California State Water Control Board. Grant approval required the submission on an ongoing monitoring plan that was accepted by the grantor.

The project received an award from the American Public Works Association in 2010.

CITY OF HERMOSA BEACH
Capital Asset Statistics by Function
Last Ten Fiscal Years
Fiscal Year
1 The City purchased 24 pay-by-space meters in fiscal year 2011. Fourteen of the machines are installed in City parking lots (which are reflected in this figure), with the remaing ten meters being returned for singled head meter for on-street parking.
170 288

OTHER REPORTS
171 289
This page intentionally left blank.
172
290
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com
173
Honorable Mayor and City Council
City of Hermosa Beach
Hermosa Beach, California

REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND

ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF

FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH

GOVERNMENT AUDITING STANDARDS
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of City of Hermosa Beach, California as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise City of Hermosa Beach’s basic financial statements, and have issued our report thereon dated March 31, 2022.

Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Hermosa Beach's internal control over financial reporting (internal control) as a basis for designing the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Hermosa Beach’s internal control. Accordingly, we do not express an opinion on the effectiveness of City of Hermosa Beach’s internal control.

A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.

Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses.

However, material weaknesses may exist that have not been identified. 291
174
Honorable Mayor and City Council
City of Hermosa Beach
Page Two
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Hermosa Beach's financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the financial statements. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.

Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.

Gruber and Lopez, Inc.

Newport Beach, California
March 31, 2022
Gruber and lopez, Inc.
292
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0343
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

LOS ANGELES COUNTY FIRE AND AMBULANCE MONTHLY
REPORT FOR APRIL 2022
(Emergency Management Coordinator Brandy Villanueva)
Recommended Action:

Staff recommends City Council receive and file the April 2022 Fire and Ambulance monthly report.

Executive Summary:

City departments generate monthly reports to provide a snapshot of activities performed each month.

Prior to the transition of fire and ambulance transport services to the County of Los Angeles, the Hermosa Beach Fire Department developed monthly response reports. After the transition, the monthly report was updated to include Los Angeles County Fire Department (LACoFD) and McCormick Ambulance information and continues to be uploaded to the website. The following report provides details regarding services provided for the month of April 2022.

Background:

At the February 11, 2020 Council meeting, City Council requested monthly reports be placed onto the City Council agenda under consent calendar. On the July 14, 2020 City Council agenda, the monthly reports began to appear. The enclosed report reflects the services for April 2022.

Past Board, Commission and Council Actions
Meeting Date Description
February 11, 2020
(Regular Meeting
City Council requested monthly reports be placed onto the City Council agenda under consent calendar.

July 14, 2020 (Regular
Meeting)
Monthly reports began on City Council consent agenda.

Discussion:

The April 2022 monthly report provides an overview of services provided by LACoFD and McCormick City of Hermosa Beach Page 1 of 5 Printed on 9/12/2022
powered by Legistar™293
Staff Report
REPORT 22-0343
Ambulance (Attachment 1: April 2022 LACoFD and McCormick Ambulance Monthly Report).

Los Angeles County Fire Department (LACoFD)
LACoFD and McCormick Ambulance work together to provide emergency medical services (EMS) to the Hermosa Beach community. LACoFD has two apparatus stationed at Station 100 including: one assessment engine (Engine 100) staffed with a Fire Captain, a Fire Engineer and a Firefighter Paramedic; and a paramedic squad (Squad 100) staffed with two Firefighter Paramedics. The paramedic squad (Squad 100) only responds to calls for service exclusively within the City of Hermosa Beach. It does not provide mutual aid, thereby remaining available for calls within Hermosa Beach.

Each of the LACoFD apparatus has the capability of providing basic emergency medical care known as Basic Life Support (BLS) to medical patients. In addition, the paramedic squad has advanced equipment including medications and responds from within the City to address Advanced Life Support (ALS) calls, such as a stroke or heart attack.

McCormick Ambulance is one of the emergency medical transport companies within Los Angeles County. LACoFD does not conduct patient transport; therefore, unincorporated areas are included in the fire department transport contracts with various providers. Contract cities are responsible for negotiating and contracting with a medical transport provider for their community. Within the South Bay, many of the cities have contracted with McCormick Ambulance to conduct emergency medical transportation including the City of Hermosa Beach.

When LACoFD is dispatched, McCormick Ambulance may also be dispatched as the City’s emergency medical transportation provider. LACoFD provides life-saving medical care on scene and continues ALS level care as the patient is transported to a local hospital. In the case of a BLS level call, monitoring and care are safely provided by one of the two Emergency Medical Technicians (EMTs) assigned to the responding ambulance.

LACoFD follows industry standards developed by the National Fire Protection Association (NFPA), which outlines call transfer times and total response times. The NFPA standard for call transfer time is that each call will be answered within 60 seconds 90 percent of the time. Additionally, responding units are to be enroute within 60 seconds to EMS related calls and 80 seconds for structure fire calls.

NFPA further stipulates that for EMS calls, responding units must arrive on scene within 8 minutes and 59 seconds 90 percent of the time.

The April 2022 call transfer report provided by LACoFD indicates that two calls had a transfer time longer than the NFPA standard. The calls were received during a period of increased call volume in the dispatch center.

City of Hermosa Beach Page 2 of 5 Printed on 9/12/2022
powered by Legistar™294
Staff Report
REPORT 22-0343
Table 1 below provides the response details for the two incidents.

Table 1:

Date Call
Type
Call
Transfer
Time
Length of
Transfer
LACoFD
Dispatch
Time
On
Scene
Time
Length of
Arrival
Total
Response
Time
April 7 Injury
ALS
12:51 114
seconds
12:55 12:58 3 minutes 4 minutes 54
seconds
April 24 Vehicle
Fire
18:43 79
seconds
18:45 18:50 5 minutes 6 minutes 19
seconds
Table definitions
· Call Transfer Time: The exact time when the call was transferred from South Bay Regional Public Communications Authority also known as Regional Communications Center (RCC). · Length of Transfer: The length of time that it took from LACoFD dispatch center to answer the call from RCC.
· LACoFD Dispatch Time: The time in which appropriate fire apparatus were dispatched to the incident.
· On Scene Time: The time in which the dispatched units arrived at the incident location. · Length of Arrival: The time between when the unit was dispatched and arrived on scene. · Total Response Time: The total combined time between the call transfer time and the length of time arriving units on scene.

McCormick Ambulance
McCormick Ambulances are staffed by two EMT’s who can provide and transport BLS patients independently and, with the support of LACoFD paramedics riding in the ambulance, can also transport ALS patients.

In April 2022, McCormick Ambulance responded to 52 calls for services within the City of Hermosa Beach. The April 2022 report indicated that 5 calls resulted in delayed Code 3 responses, which is a decrease in delayed calls from the March 2022 transport report. There were 2 delayed Code 2 responses in April 2022. A Code 3 response is one where the responding emergency units are driving with lights and sirens to a presumed life-threatening emergency, which is typically classified as an ALS call. According to the McCormick Ambulance contract, “response time must not exceed eight (8) minutes, fifty-nine (59) seconds” for a Code 3 incident. A Code 2 response is one where the responding emergency units are driving with lights and sirens to an emergency classified as a basic City of Hermosa Beach Page 3 of 5 Printed on 9/12/2022
powered by Legistar™295
Staff Report
REPORT 22-0343
responding emergency units are driving with lights and sirens to an emergency classified as a basic life support or BLS call.

Staff reviewed the April 2022 McCormick Ambulance monthly report. The following outlines the reasons for the delayed responses:
· Multiple Calls: (5) The dispatch center received multiple calls at the same time; and · Distance: (2) Based on the location the ambulance begins the response to the City, it could impact the response time. The City contract does not have a unit permanently stationed within Hermosa Beach; therefore, the responding ambulance often begins the response outside of the City.

McCormick Ambulance demonstrates a continuous effort to detect and correct service level performance deficiencies by identifying the reason for delayed response times, issuance of personnel performance notices when mandatory response requirements are not met, and the release of personnel upon continued performance issues. McCormick Ambulance also provides training and continuing education to staff to improve skills and service delivery.

Although the emergency medical transport units were delayed in arriving on scene within the allowable timeframe for 7 calls in April 2022, patients were provided timely life-saving emergency medical care on scene by Los Angeles County Fire Department paramedics. When LACoFD arrives on scene, it takes paramedics 5 to 10 minutes to conduct the required treatment protocols prior to commencing transport with McCormick Ambulance. During the patient treatment phase, the requested ambulance is typically on scene waiting for the paramedics to complete their treatment protocols even if the ambulance response is delayed. Los Angeles County Fire Department and McCormick Ambulance are committed to providing excellent emergency medical care, customer service, and response to the residents and visitors of Hermosa Beach.

General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

Safety Element
Goal 5. High quality police and fire protection services provided to residents and visitors.

Policy:
· 5.2 High level of response. Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community.

City of Hermosa Beach Page 4 of 5 Printed on 9/12/2022
powered by Legistar™296
Staff Report
REPORT 22-0343
Fiscal Impact:

Fire and ambulance services are contracted and accounted for during the annual budget process.

Attachments:

1. Fire and Ambulance Monthly Report-April 2022
Respectfully Submitted by: Brandy Villanueva, Emergency Management Coordinator Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 5 of 5 Printed on 9/12/2022
powered by Legistar™297
E100 S100 Total
FIRE, EXPLOSION
150 ‐ Outside rubbish fire, other 1               1  0.45% FIRE, EXPLOSION Total 1               ‐            1  0.45% RESCUE, EMS
300 ‐ Rescue, emergency medical call (EMS) call, other 7               4               11                 4.91% 311 ‐ Medical assist, assist EMS crew 8               7               15                 6.70% 320 ‐ Emergency medical service, other 3               2               5  2.23% 321 ‐ EMS call, excluding vehicle accident with injury 56             58             114               50.89% 322 ‐ Vehicle accident with injuries 1               1  0.45% 323 ‐ Motor vehicle/pedestrian accident (MV Ped) 1               1               2  0.89% RESCUE, EMS Total 75             73             148               66.07% SERVICE CALL
500 ‐ Service Call, other 1               1  0.45%
SERVICE CALL Total 1               ‐            1  0.45% GOOD INTENT CALL
600 ‐ Good intent call, other 10             4               14                 6.25% 611 ‐ Dispatched & cancelled enroute 18             4               22                 9.82% GOOD INTENT CALL Total 28             8               36                 16.07% FALSE ALARM, FALSE CALL
733 ‐ Smoke detector activation due to malfunction 1               1  0.45% 744 ‐ Detector activation, no fire ‐ unintentional 1               1  0.44% FALSE ALARM, FALSE CALL Total 2               ‐            2  0.89% SPECIAL OR OTHER INCIDENT TYPE
900 ‐ Special type of incident, other 18             4               22                 9.82% 911 ‐ Citizen complaint 13             1               14                 6.25% SPECIAL OR OTHER INCIDENT TYPE Total 31             5               36                 16.07% Grand Total 138           86             224               100.00% Note:

Data based on updated fireview ‐ apparatus 2022 data.  Hermosa Beach units responses.

LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OF APRIL 2022
Incident Type UNIT RESPONSESPercentage
Submitted by Brandy Villanueva, Emergency Management Coordinator 1 298
DAY OF THE WEEK E100 S100 Total
Sunday 20 13 33
Monday 19 13 32
Tuesday 13 6 19
Wednesday 14 4 18
Thursday 20 17 37
Friday 28 21 49
Saturday 24 12 36
Grand Total 138            86               224
Note:

Data based on updated fireview ‐ apparatus 2022 data.  Hermosa Beach units responses.

LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OF APRIL 2022
UNIT RESPONSES
0 5
10 15
20 25
30 E100
S100
Submitted by Brandy Villanueva, Emergency Management Coordinator 2 299
TIME OF THE DAY E100 S100 Total
00:00:00 TO 00:59:59 1                  1                 2 01:00:00 TO 01:59:59 4                  2                 6 02:00:00 TO 02:59:59 ‐
03:00:00 TO 03:59:59 3                  3                 6 04:00:00 TO 04:59:59 5                  2                 7 05:00:00 TO 05:59:59 ‐
06:00:00 TO 06:59:59 ‐
07:00:00 TO 07:59:59 5                  3                 8 08:00:00 TO 08:59:59 8                  5                 13 09:00:00 TO 09:59:59 9                  6                 15 10:00:00 TO 10:59:59 5                  5                 10 11:00:00 TO 11:59:59 11               7                 18 12:00:00 TO 12:59:59 10               4                 14 13:00:00 TO 13:59:59 5                  1                 6 14:00:00 TO 14:59:59 8                  6                 14 15:00:00 TO 15:59:59 8                  7                 15 16:00:00 TO 16:59:59 11               7                 18 17:00:00 TO 17:59:59 5                  3                 8 18:00:00 TO 18:59:59 8                  6                 14 19:00:00 TO 19:59:59 8                  3                 11 20:00:00 TO 20:59:59 7                  5                 12 21:00:00 TO 21:59:59 7                  6                 13 22:00:00 TO 22:59:59 7                  3                 10 23:00:00 TO 23:59:59 3                  1                 4 Grand Total 138             86              224
Note:

Data based on updated fireview ‐ apparatus 2022 data.  Hermosa Beach units responses.

LOS ANGELES COUNTY FIRE DEPARTMENT
HERMOSA BEACH
FOR THE MONTH OFAPRIL 2022
UNIT RESPONSES
‐
2 4
6 8
10 12
00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59 E100
S100
Submitted by Brandy Villanueva, Emergency Management Coordinator 3 300
Ad Hoc Report:

Name:

Date:

Description:

Seizure Date Seizure Time ALI City Answer Secs Call Type ID ALI Class 4/1/2022 10:13:18 HMB 2 911 Calls WPH2
4/1/2022 16:09:31 HERMOSA BEACH 2 911 Calls WPH2
4/1/2022 20:46:23 HERMOSA BEACH 2 911 Calls WPH2
4/2/2022 10:45:39 HMB 2 911 Calls WPH2
4/2/2022 14:27:05 HERM BCH 17 911 Calls WPH2
4/2/2022 14:37:24 HERMOSA BEACH 19 911 Calls VOIP
4/4/2022 09:18:30 HERMOSA BEACH 2 911 Calls WPH2
4/4/2022 18:51:26 HERMOSA BEACH 2 911 Calls VOIP
4/4/2022 21:31:31 HERMOSA BEACH 2 911 Calls VOIP
4/5/2022 10:33:17 HERMOSA BEACH 1 911 Calls VOIP
4/6/2022 00:06:58 HERMOSA BEACH 2 911 Calls WPH2
4/6/2022 08:02:53 HERM BCH 2 911 Calls WPH2
4/7/2022 12:12:53 HERMOSA BEACH 2 911 Calls RESD
4/7/2022 12:51:59 HERMOSA BEACH 114 911 Calls VOIP
4/7/2022 12:53:25 HERMOSA BEACH 5 911 Calls WPH2
4/7/2022 13:35:06 HERMOSA BEACH 32 911 Calls VOIP
4/7/2022 22:39:36 HERMOSA BEACH 7 911 Calls VOIP
4/8/2022 00:15:59 HERMOSA BEACH 2 911 Calls RESD
4/8/2022 01:48:42 HERM BCH 2 911 Calls WPH2
4/8/2022 01:48:43 HERM BCH 5 911 Calls WPH2
4/8/2022 11:56:20 HERM BCH 2 911 Calls WPH2
4/8/2022 15:21:25 HERM BCH 2 911 Calls WPH2
4/8/2022 20:26:49 HERMOSA BEACH 2 911 Calls VOIP
4/8/2022 20:43:41 HERMOSA BEACH 2 911 Calls WPH2
4/8/2022 21:42:13 HERMOSA BEACH 2 911 Calls WPH2
4/8/2022 21:43:02 HERMOSA BEACH 5 911 Calls WPH2
4/9/2022 15:18:32 HERM BCH 2 911 Calls WPH2
4/10/2022 03:18:08 HERMOSA BEACH 2 911 Calls RESD
4/10/2022 11:09:20 HERM BCH 2 911 Calls WPH2
4/10/2022 11:45:59 HERMOSA BEACH 2 911 Calls VOIP
4/10/2022 12:03:35 HMB 1 911 Calls WPH2
4/10/2022 14:15:13 HMB 2 911 Calls WPH2
4/10/2022 14:18:08 HERMOSA BEACH 1 911 Calls WPH2
4/10/2022 14:18:19 HERMOSA BEACH 2 911 Calls WPH2
4/11/2022 03:34:27 HERM BCH 2 911 Calls WPH2
4/11/2022 14:01:48 HERM BCH 2 911 Calls WPH2
4/12/2022 09:26:20 HERM BCH 3 911 Calls WPH2
4/14/2022 09:55:43 HERM BCH 2 911 Calls WPH2
4/14/2022 13:15:02 HERMOSA BEACH 2 911 Calls VOIP
Hermosa Call Answer Time
5/1/2022
Apr-22
Los Angeles County Fire
Submitted by Brandy Villanueva, Emergency Management Coordinator 4 301
4/15/2022 00:39:32 HERMOSA BEACH 52 911 Calls WPH2
4/15/2022 08:58:00 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 09:11:22 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 14:27:53 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 15:30:40 HERMOSA BEACH 2 911 Calls VOIP
4/15/2022 15:58:04 HMB 2 911 Calls WPH2
4/16/2022 22:27:50 HERM BCH 2 911 Calls WPH2
4/16/2022 22:28:29 HERM BCH 8 911 Calls WPH2
4/16/2022 22:29:01 HERM BCH 2 911 Calls WPH2
4/17/2022 17:42:22 HMB 2 911 Calls WPH2
4/19/2022 18:19:21 HERMOSA BEACH 2 911 Calls RESD
4/20/2022 09:56:51 HERMOSA BEACH 2 911 Calls RESD
4/20/2022 18:47:08 HERM BCH 2 911 Calls WPH2
4/20/2022 22:50:13 HERMOSA BEACH 2 911 Calls WPH2
4/21/2022 18:32:45 HERMOSA BEACH 25 911 Calls RESD
4/21/2022 20:02:41 HERMOSA BEACH 2 911 Calls VOIP
4/21/2022 23:52:49 HERMOSA BEACH 9 911 Calls VOIP
4/22/2022 01:02:47 HERM BCH 3 911 Calls WPH2
4/22/2022 07:07:45 HMB 17 911 Calls WPH2
4/23/2022 10:08:46 HERMOSA BEACH 2 911 Calls VOIP
4/23/2022 12:55:06 HERMOSA BEACH 2 911 Calls RESD
4/23/2022 17:10:48 HERMOSA BEACH 2 911 Calls WPH2
4/23/2022 20:01:00 HERMOSA BEACH 18 911 Calls RESD
4/23/2022 20:01:03 HERM BCH 57 911 Calls WPH2
4/24/2022 15:10:08 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 16:02:20 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 16:08:08 HERMOSA BEACH 2 911 Calls WPH2
4/24/2022 18:42:27 HERMOSA BEACH 79 911 Calls VOIP
4/25/2022 13:44:45 HERM BCH 2 911 Calls WPH2
4/25/2022 15:20:23 HERMOSA BEACH 2 911 Calls VOIP
4/25/2022 18:40:03 HERM BCH 2 911 Calls WPH2
4/25/2022 19:02:08 HERMOSA BEACH 2 911 Calls VOIP
4/26/2022 08:17:51 HERM BCH 2 911 Calls WPH2
4/26/2022 16:48:44 HERM BCH 2 911 Calls WPH2
4/26/2022 17:44:43 HERMOSA BEACH 2 911 Calls RESD
4/27/2022 08:21:55 HERM BCH 36 911 Calls WPH2
4/27/2022 19:18:48 HERM BCH 2 911 Calls WPH2
4/28/2022 11:46:41 HERM BCH 2 911 Calls WPH2
4/28/2022 21:14:16 HERM BCH 22 911 Calls WPH2
4/29/2022 08:35:51 HMB 2 911 Calls WPH2
4/30/2022 10:54:50 HERMOSA BEACH 2 911 Calls VOIP
Average Call Answer Time (seconds) 8
Submitted by Brandy Villanueva, Emergency Management Coordinator 5 302
McCormick Ambulance
April 2022
Total Number of Dispatched Calls
Dispatched Calls Totals
Transported 52
Cancelled 41
Grand Total 93
NOTE: None
52, 56%
41, 44%
Total Dispatched Calls
Transported
Cancelled
Submitted by Brandy Villanueva, Emergency Management Coordinator 6 303
Calls per the day of the week
Day of the Week Completed Cancelled Total
Sunday 8 8 16
Monday 10 4 14
Tuesday 4 3 7
Wednesday 3 1 4
Thursday 6 11 17
Friday 13 9 22
Saturday 8 5 13
Grand Total 52 41 93
0 2
4 6
8 10
12 14
Completed
Canceled
Submitted by Brandy Villanueva, Emergency Management Coordinator 7 304
Response by the Time of Day
Time of Day Total Response
00:00:00 TO 00:59:59 1
01:00:00 TO 01:59:59 2
02:00:00 TO 02:59:59 0
03:00:00 TO 03:59:59 3
04:00:00 TO 04:59:59 3
05:00:00 TO 05:59:59 0
06:00:00 TO 06:59:59 0
07:00:00 TO 07:59:59 4
08:00:00 TO 08:59:59 6
09:00:00 TO 09:59:59 7
10:00:00 TO 10:59:59 5
11:00:00 TO 11:59:59 6
12:00:00 TO 12:59:59 6
13:00:00 TO 13:59:59 1
14:00:00 TO 14:59:59 7
15:00:00 TO 15:59:59 7
16:00:00 TO 16:59:59 8
17:00:00 TO 17:59:59 3
18:00:00 TO 18:59:59 6
19:00:00 TO 19:59:59 3
20:00:00 TO 20:59:59 5
21:00:00 TO 21:59:59 6
22:00:00 TO 22:59:59 3
23:00:00 TO 23:59:59 1
Grand Total 93
0 1
2 3
4 5
6 7
8 9
00:00:00 TO 00:59:5901:00:00 TO 01:59:5902:00:00 TO 02:59:5903:00:00 TO 03:59:5904:00:00 TO 04:59:5905:00:00 TO 05:59:5906:00:00 TO 06:59:5907:00:00 TO 07:59:5908:00:00 TO 08:59:5909:00:00 TO 09:59:5910:00:00 TO 10:59:5911:00:00 TO 11:59:5912:00:00 TO 12:59:5913:00:00 TO 13:59:5914:00:00 TO 14:59:5915:00:00 TO 15:59:5916:00:00 TO 16:59:5917:00:00 TO 17:59:5918:00:00 TO 18:59:5919:00:00 TO 19:59:5920:00:00 TO 20:59:5921:00:00 TO 21:59:5922:00:00 TO 22:59:5923:00:00 TO 23:59:59 Time of Day
Responses
Submitted by Brandy Villanueva, Emergency Management Coordinator 8 305
Response Times Within Allowable
Time
Delayed Response Cancelled Total
Code 3: Response
Time of 8:59 or less
17 5 0 22
Code 2: Response
Time of 15:00 or
less
28 2 0 30
Cancelled
Responses
0 0 41 41
Grand Total 45 7 41 93
Submitted by Brandy Villanueva, Emergency Management Coordinator 9 306
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0369
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

FINDINGS TO HOLD REMOTE TELECONFERENCE/MEETINGS,
PURSUANT TO ASSEMBLY BILL 361
(City Clerk Myra Maravilla)
Recommended Action:

Staff recommends City Council authorize remote teleconference/virtual meetings of all City of Hermosa Beach legislative bodies in accordance with Assembly Bill 361 (“AB 361”), by finding that:
(1) a statewide state of emergency is currently in place; (2) state and local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and meeting in person would present imminent risks to the health or safety of attendees.

Background:

All meetings of the City’s legislative bodies are subject to the Ralph M. Brown Act (Gov. Code §§ 54950 et seq.) and must be open and public so that any member of the public may attend and participate in the meetings. Commencing in March of 2020, Governor Newsom issued a series of executive orders aimed at preventing the spread of a respiratory disease that came to be known as the novel coronavirus, “COVID-19.” Among these were Executive Orders (“EO”) N-25-20, N-29-20, and N-35-20 (collectively, the “Brown Act Orders”) that waived the teleconferencing requirements of the Brown Act to allow legislative bodies to meet virtually.

On June 11, 2021, the Governor issued EO N-08-21 to begin winding down some of the prior measures that were adopted to respond to COVID-19. Notably, EO N-08-21 rescinded the Brown Act Orders, effective September 30, 2021. On September 16, 2021, Governor Newsom signed AB 361, which became effective October 1, 2021, and amended the Brown Act to allow legislative bodies to meet virtually, without following the Brown Act’s standard teleconferencing rules, provided that the legislative body makes specific findings, which include the following:

1. A statewide state of emergency is currently in place;

2. State or local officials have imposed or recommended measures to promote social distancing in connection with COVID-19; and/or

3. Meeting in person would present imminent risks to the health or safety of attendees.

Continued compliance with AB 361 would require City Council to approve the action making the City of Hermosa Beach Page 1 of 2 Printed on 9/12/2022
powered by Legistar™307
Staff Report
REPORT 22-0369
Continued compliance with AB 361 would require City Council to approve the action making the required findings at least every 30 days.

Discussion:

All three findings under AB 361 can be made given the current circumstances. The Governor has proclaimed a state of emergency in response to the ongoing COVID-19 pandemic. The state of emergency currently remains in effect.

Further, State officials, including the California Department of Public Health, have recommended measures to promote social distancing in connection with COVID-19, which are currently in place. Similarly, local officials, including the County Public Health Officer, have also recommended measures to promote social distancing in connection with COVID -19. In a recommendation dated September 28, 2021, the County Public Health Officer stated that “utilizing teleconferencing options for public meetings is an effective and recommended social distancing measure to facilitate participation in public affairs and encourage participants to protect themselves and others from the COVID-19 disease.” Finally, the City has determined that meeting in person would present imminent risks to the health or safety of attendees. Accordingly, all of the above-referenced AB 361 findings currently exist.

If City Council thus desires to allow virtual meetings in order to both ensure the health and safety of the public, the legislative bodies of the City, and City staff, as well as continuity of government in allowing regularly-scheduled meetings to continue to occur without interruption, staff recommends City Council authorize virtual/teleconference meetings by making the findings set forth above.

Alternative:

If City Council does not make the findings pursuant to AB 361, the City would have to conduct its public meetings for City Council and other public boards and commissions in person and not have the option of conducting its meetings via teleconferencing.

Fiscal Impact:

There is no fiscal impact associated with the recommended action.

Attachments:

Link to Assembly Bill 361
Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 2 of 2 Printed on 9/12/2022
powered by Legistar™308
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0352
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

APPROVAL OF AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE ROTARY CLUB OF HERMOSA BEACH FOR USE OF THE CORNER OF 11TH STREET AND VALLEY

DRIVE FOR THE FRIDAY FARMERS MARKET
(Community Resources Manager Lisa Nichols)
Recommended Action:

Staff recommends City Council:

1. Approve an agreement with the Rotary Club of Hermosa Beach to provide its weekly Friday farmers market for a three-year term (Attachment 1); and

2. Authorize the Mayor and City Manager to execute and the City Clerk to attest to the agreement subject to approval by the City Attorney.

Executive Summary:

Since 1990, the City has approved a farmers market to be held weekly on Friday afternoons. The market was formerly managed by the Hermosa Beach Chamber of Commerce and Visitors Bureau (Chamber of Commerce) until the Rotary Club of Hermosa Beach (Rotary Club) began managing it in 2015. The current agreement with the Rotary Club is set to expire on June 24, 2022. Staff and the Rotary Club worked to develop mutually agreeable terms for a new three-year agreement that would extend through June 27, 2025.

Background:

In 1990, the Chamber of Commerce began managing a farmers market every Friday afternoon. The Friday farmers market took place at various locations throughout the City until 2003, when it was moved to the corner of 11th Street and Valley Drive, which is its current location.

In 2014, the Chamber of Commerce elected to dedicate its resources to a new farmers market on Pier Plaza on Wednesday afternoons in an effort to bring more daytime visitors during the weekdays to the downtown area. This left the Friday farmers’ market without management. Due to community feedback and requests to uphold the Friday farmers market at its current location, the Rotary Club stepped in to manage the farmers market in 2015 and has done so, successfully, ever since.

At its regular meeting on March 8, 2016, City Council approved an agreement with the Rotary Club City of Hermosa Beach Page 1 of 4 Printed on 9/12/2022
powered by Legistar™309
Staff Report
REPORT 22-0352
At its regular meeting on March 8, 2016, City Council approved an agreement with the Rotary Club for its management of the Friday farmers market for a three-year term, expiring February 21, 2019 (Attachment 2).

On February 18, 2019, staff administratively approved an extension to the agreement to allow an additional four-month term, expiring June 28, 2019. This extension was to allow additional time to further negotiate the terms of the agreement and to align the terms of the agreement with the adopted vendor requirements in the agreement for the Chamber of Commerce’s Wednesday farmers market (Attachment 3).

At its regular meeting on June 11, 2019, City Council approved the first amendment to the agreement to modify the vendor requirements to allow both handmade and commercial goods to increase the variety of options and experiences for market visitors. The vendor requirements outlined in the first amendment aligned with the terms in the agreement for the Chamber of Commerce’s Wednesday farmers market. Additionally, the first amendment extended the agreement by four months through June 24, 2022 (Attachment 4).

The Chamber of Commerce agreement to hold the Wednesday farmers market expired June 24, 2020. The Chamber of Commerce did not request a new contract following the expiration due to concerns with COVID-19 and resource challenges. The Wednesday farmers market is no longer held.

Past Board, Commission and Council Actions
Meeting Date Description
March 8, 2016 Approval of a three-year Agreement between the City of Hermosa Beach and the Rotary Club of Hermosa Beach
for use of the corner of 11th Street and Valley Drive for the Friday Farmers Market Expiring February 21, 2019.

June 11, 2019 Approval of First Amendment to the Agreement to modify the vendor requirements and extend the term by three
years to June 24, 2022.

Discussion:

The Friday farmers market takes place on the corner of 11th Street and Valley Drive and is heavily attended by school-aged children and the community in the surrounding area. The proposed new agreement maintains the terms of the prior agreement with minor formatting and language updates, City of Hermosa Beach Page 2 of 4 Printed on 9/12/2022
powered by Legistar™310
Staff Report
REPORT 22-0352
agreement maintains the terms of the prior agreement with minor formatting and language updates, which do not impact the production of the farmers market or its event format.

At the request of the Rotary Club, the new agreement includes language that permits amplified sound at the farmers market to provide entertainment to visitors. The amplified sound would consist of a musician and an instrument with a portable audio system. The entertainment has taken place at past farmers markets with no reportable concerns. After discussing with nearby residents and the Hermosa Beach Police Department, which has a building located directly next to the farmers market location, staff has no concerns including language to allow amplified sound during the hours of the farmers market.

Staff recommends City Council approve the proposed agreement (Attachment 1) with the Rotary Club to continue to provide the Friday farmers market.

General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

Governance Element
Goal 5. Small beach town character is reflected throughout Hermosa Beach.

Policy:
· 5.7 Visitor and resident balance. Recognize the desire and need to balance visitorserving and local-serving uses as a key to preserving character and the economic vitality of the community.

Goal 6. A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.

Policy:
· 6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses.

Parks and Open Space Element
Goal 3. Community parks and facilities encourage social activity and interaction.

Policies:
· 3.2 Social and cultural events. Design and program parks and open space to accommodate unique social and cultural events to foster connectedness and interaction. · 3.5 Health and physical activity. Increase the availability of space and variety of activities that promote community health and physical activity such as community gardens, City of Hermosa Beach Page 3 of 4 Printed on 9/12/2022 powered by Legistar™311
Staff Report
REPORT 22-0352
activities that promote community health and physical activity such as community gardens, fitness stations/equipment, and fields/courts.

Fiscal Impact:

The Rotary Club is required to have an annual business license with the City, an annual Amplified Sound Permit, and is responsible for all costs related to City services or personnel required for the event.

Attachments:

1. Proposed New Agreement

2. Agreement

3. Extension Letter

4. First Amendment to Agreement

5. Link to March 8, 2016 City Council Staff Report

6. Link to June 11, 2019 City Council Staff Report
Respectfully Submitted by: Lisa Nichols, Community Resources Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 4 of 4 Printed on 9/12/2022
powered by Legistar™312
1 |ROTARY FARMERS MARKET A G R E E M E N T

AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND THE ROTARY CLUB OF HERMOSA BEACH FOR USE OF THE CORNER OF 11TH STREET AND VALLEY DRIVE FOR THE FRIDAY FARMERS MARKET This Agreement for use of the corner of 11th Street and Valley Drive described in Exhibit A (hereinafter called “Agreement”) for a farmers market (herein called “Event”) is made the 25th day of June, 2022 by and between the City of Hermosa Beach, a municipal corporation (hereinafter called “CITY”) and the Rotary Club of Hermosa Beach, a California nonprofit public benefit corporation (hereinafter called “ROTARY”).

RECITALS
A. ROTARY has requested and CITY is willing to make the corner of 11th Street and Valley Drive (hereinafter called “Site”, as depicted on Exhibit A, “Site Map”), available to ROTARY for its weekly Event pursuant to the terms and conditions of this Agreement.

B. CITY desires a commitment from ROTARY regarding its use of the Site for the benefit of the residents.

C. ROTARY desires a commitment from CITY to secure the Site for the Event for the term of this Agreement.

NOW, THEREFORE, in consideration of the foregoing and contained herein, the parties agree as follows:

I. TERM AND PAYMENT
a. The Term of this Agreement shall be for three years commencing on June 25, 2022 and terminating on June 27, 2025 unless earlier terminated as provided herein. b. ROTARY agrees to pay CITY applicable fees for its use of the Site. Fees are to be as established in the CITY’s annual Master Fee Schedule. Applicable fees may include:
i. Costs associated with adequate trash removal and/or "clean-up” deficiency work;
ii. Costs related to CITY services or personnel required for the Event, including an annual Amplified Sound Permit fee; and
iii. Event co-sponsor fee(s).

1. All Event co-sponsors must be approved by the City.
c. Either the CITY or ROTARY may terminate this Agreement at any time upon giving thirty (30) days written notice to the other party as outlined in Section XIV(b). d. The proceeds generated from the Event shall not be used for political campaign purposes, whether in connection with candidates for political office or ballot measures.

II. THE EVENT
313
2 |ROTARY FARMERS MARKET A G R E E M E N T
a. The Event may be produced each Friday during the term of this agreement. b. The Event shall take place in the locations depicted in Exhibit A. Use of additional location(s) may be approved as mutually agreed upon between the CITY and ROTARY.
c. The Event shall consist of vendor booths with a market composition of:
a. Sixty percent (60%) of vendors that are farmers as well as purveyors of prepackaged food. The market shall maintain a minimum of 6 farmers at all times with exceptions for inclement weather and natural disasters; and b. Forty percent (40%) of vendors shall provide hot food and meals or be artisans selling home-crafted wares.
d. Farmers shall be considered California producers of fresh fruit, nuts, vegetables, flowers, honey, eggs, nursery stock, plants and livestock products including fish and shellfish produced under controlled conditions in waters or ponds located in California. e. In cases where the market composition is not achievable due to inclement weather or natural disasters, ROTARY shall make a good faith effort to adhere to them as much as possible.
f. Should the vendor composition of the market be out of compliance and, in those cases, not associated with inclement weather or a natural disaster, ROTARY will have 30 days to rectify to the satisfaction of the CITY. Failure to do so will result in termination of this Agreement.
g. The Event may include live acoustic or amplified music during market hours between 12:00 PM to 4:00 PM on each Event day. Amplifiers must be pointed south so as to limit noise impacts to the surrounding residential property. A stage and/or generator is not permitted, unless otherwise approved by the CITY and the Los Angeles County Fire Department.

II. ROTARY RESPONSIBILITIES
a. ROTARY shall maintain its status as a non-profit organization throughout the term of this Agreement.
b. ROTARY shall manage the Event, including coordination of set up/tear down between the hours of 9:00 AM and 5:00 PM on each Event day. c. A designated event representative, subject to approval by the City, shall remain on-site during the entire Event. The event representative shall be responsible for managing the vendors, assuring that vendors remove all trash and that the Site is clean and free of equipment, waste or debris at the conclusion of each Event. d. ROTARY shall be solely responsible for rectifying any outstanding “clean-up” deficiency as may be determined at the sole discretion of the CITY. 314
3 |ROTARY FARMERS MARKET A G R E E M E N T
e. ROTARY shall manage the placement of booths and shall have the authority to remove unauthorized booths, furniture and other objects that interfere with the conduct of the Event.
f. ROTARY shall provide, at its own expense, all necessary funds, staff, equipment and materials necessary to adequately produce and promote the Event. g. ROTARY shall provide a designated representative to consult as necessary with the CITY designee regarding all facets of the Event.
h. ROTARY shall provide adequate access to the Event for people with disabilities in a manner that is satisfactory to the CITY and keep all pedestrian aisles and pathways clear and unobstructed.
i. ROTARY shall be responsible for securing all necessary permits and licenses, as determined by the CITY.
j. ROTARY shall prohibit the sale of alcoholic and tobacco products at the Event. k. ROTARY has read, understands, and accepts responsibility for ensuring Implementation of the City's Ban on Certain Polystyrene Products, Single-Use Plastic Products, and Single-Use Products in Section 8.64.030 and 8.64.050 of the Municipal Code, which reads as follows:
i. 8.64.030(D). No person shall use or distribute polystyrene food service ware at city-sponsored events, city-managed concessions and city meetings open to the public. This subsection shall apply to the function organizers, agents of the organizers, city contractors, food providers, beverage providers or nonprofit vendors and any other person that enters into an agreement with one or more of the function sponsors to sell or distribute prepared food or raw food or beverages or otherwise provide a service related to the function.
a.) Biodegradable food service containers shall be used by vendors.
ii. 8.64.050(A) Prohibition of Plastic Straws, Stirrers, and Utensils. Food providers and beverage providers and nonprofit vendors shall not use or distribute plastic beverage straws, plastic stirrers or plastic utensils, whether for use on site, to go, or delivery. Disposable straws, stirrers, and utensils must be nonplastic, made from nonplastic materials, such as paper, pasta, sugar cane, wood, or bamboo.
a.) Vendors are prohibited from using plastic bags to deliver, provide or hand merchandise to customers.
l. ROTARY is permitted access to the kitchen area at the Community Services Department building for use of the sink and storage space on each Event day between 9:00am and 5:00pm. ROTARY is permitted to use this area for storage of non-food items and will not block any exits or entrances. ROTARY agrees to remove all trash from the kitchen area on each Event day and ensure that this area is clean.

III. CITY RESPONSIBILITIES
315
4 |ROTARY FARMERS MARKET A G R E E M E N T
a. CITY shall permit ROTARY to conduct the event as described in Section II. b. CITY shall provide ROTARY a designated liaison from the CITY to serve as the assigned contact regarding the operation of activities on the Site. All decisions of a CITY designee shall be final with respect to any issues that involve compliance with this Agreement as well as any issues that directly and/or adversely impact the community. Said CITY designee shall consult with the designated event representative of ROTARY and it shall be the goal of both parties to reach mutual agreement on matters of Event operation.
c. CITY shall provide ROTARY any CITY services required for the Event (e.g., police, fire. building inspection. etc.) as deemed necessary by the respective City Manager, Police Chief, or Community Resources Manager.
d. CITY shall coordinate and provide necessary CITY permits. e. CITY shall make any necessary contacts on behalf of ROTARY with the Los Angeles County Department of Beaches and Harbors.
f. The CITY agrees to provide ROTARY with access to the kitchen area at the Community Services Department building for use of the sink and storage space on each Event day between 9:00am and 5:00pm.

VI. ADVERTISING & SPONSOR BANNERS
a. ROTARY is permitted to install and maintain a banner advertising the Event on the fence surrounding the basketball court located at Clark Field. a. CITY reserves the right to relocate or remove banners if they are found to be inappropriate or pose a safety issue. CITY will notify ROTARY before relocating or removing banners unless a safety concern warrants immediate action. b. All signs, props, product facsimiles, etc. desired by ROTARY to identify the Event shall be approved as to location and content by CITY. CITY will not unnecessarily deny said approval and will not curtail certain constitutional rights of ROTARY.

X. INSURANCE
a. ROTARY shall provide the CITY a Certificate of Insurance providing personal injury and property damage liability insurance naming CITY, the County of Los Angeles, its officers, employees, volunteers and agents as additional insured with a minimum coverage of two million dollars ($2,000,000) combined single limit coverage.

Insurance is to be placed with insurers with a current AM Best’s rating of no less than A: VII. Said insurance shall not be canceled or altered without thirty (30) days’ notice in writing to CITY.
b. ROTARY insurers shall be primarily responsible for all liability resulting from or arising out of the performance of the contract, and CITY and their insurers shall not be required to contribute.
316
5 |ROTARY FARMERS MARKET A G R E E M E N T
c. For insurance purposes, the Site shall be defined to include all areas occupied or affected by the Event, as depicted on Exhibit A (“Site Map”).

XI. INDEMNITY AND ASSUMPTION OF RISK
a. ROTARY shall hold harmless, defend and indemnify the CITY, its officers, employees and volunteers from and against any and all liability, loss, damage expense, and costs (including without limitation costs and fees of litigation), of every nature arising out of or in connection with ROTARY’s farmers market and performance of the league hereunder or its failure to comply with any of its obligations contained in this Agreement except such loss or damage which was caused by the sole negligence or willful misconduct of the CITY. The CITY shall indemnify ROTARY from and against any and all liability, loss, damage, expense, and costs (including without limitation costs and fees of litigation), of every nature arising out of or in connection with the sole negligence or willful misconduct of the CITY.
b. By signing this agreement, ROTARY acknowledges the contagious nature of COVID-19 and voluntarily assume the risk that Event staff and customers may be exposed to or infected by COVID-19 by using the Site, and that such exposure or infection may result in personal injury, illness, permanent disability, and death. ROTARY understands that the risk of becoming exposed to or infected by COVID-19 at the Site may result from the actions, omissions, or negligence of Event staff and customers, including, but not limited to, City of Hermosa Beach employees, officials and agents. c. ROTARY assumes all risks of damages and injury to Event staff and customers arising out of or attributable to its use of the Site during the COVID-19 pandemic. ROTARY hereby releases and discharges the City of Hermosa Beach and its officers, employees and agents, from any and all claims for losses, injuries, damages or liabilities, including personal injury and injury to personal property arising out of or attributable to its use of the Site during the COVID-19 pandemic, and ROTARY expressly releases the City of Hermosa Beach and its officers, employees and agents from and against any and all claims or liability arising from their negligence. ROTARY voluntarily agrees to assume all of the foregoing risks and accepts sole responsibility for any injury to Event staff and customers including, but not limited to, personal injury, disability, and death, illness, damage, loss, claim, liability, or expense, of any kind, that may be experienced or incurred in connection with use of the facilities described in Exhibit A. ROTARY hereby releases, covenants not to sue, discharges, and holds harmless the City of Hermosa Beach, its employees, officers, and agents, of and from all liabilities, claims, actions, damages, costs or expenses of any kind arising out of or relating thereto. ROTARY understands and agrees that this release includes any claims based on the actions, omissions, or negligence of the City of Hermosa Beach, its employees, officers and agents, whether a COVID-19 infection occurs before, during, or after use of the Site.

XII. INDEPENDENT CONTRACTOR
a. CITY and ROTARY shall each be and act as independent contractors and under no circumstances shall this agreement be construed as one of agency or partnership between CITY and ROTARY. Each party acknowledges and agrees that it neither has nor will give the appearance or impression of having any legal authority to bind or commit the other party in any way other than as authorized by this Agreement.

Nothing in this Agreement shall be construed to create a joint venture between the 317
6 |ROTARY FARMERS MARKET A G R E E M E N T
parties hereto or to obligate either party for debts or obligations incurred by the other party in the performance of this Agreement.

XIII. COMPLIANCE WITH THE LAW
a. Should it be determined that this Agreement or any provision hereof violates any federal, state, or local law or regulation, then the parties shall promptly modify this Agreement to the extent necessary to bring about compliance with such law and/or regulation; provided, however, that if such modification would cause this Agreement to fail in its essential purpose or purposes, it shall be deemed cancelled by mutual agreement of the parties and neither party shall have any further obligations or liabilities with respect to this Agreement.

XIV. RESERVATION OF RIGHTS BY CITY
a. CITY reserves the right in its sole discretion at any time or times to close and suspend the use of the Site subject to this Agreement for any duration in order to protect public health and safety. Any such closure will not constitute a breach or a default of this Agreement.

CITY shall have no liability whatever to ROTARY for the effect of such suspension and closure of the Site, nor shall CITY have any responsibility to provide ROTARY with substitute location(s). ROTARY’s rights under this Agreement are subject and subordinate to CITY’s police and emergency powers in addition to CITY’s rights to manage its municipal facilities and its contractual rights as described in this Agreement. b. Notwithstanding any other provision of this lease both parties reserve the right to terminate the Agreement at any time and without cause upon giving thirty (30) days written notice to the other party.

XV. ENTIRE AGREEMENT
a. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior understandings or agreements in regard hereto. This Agreement cannot be altered or modified except by an agreement in writing signed by both parties.

CITY OF HERMOSA BEACH
Michael Detoy, Mayor Suja Lowenthal, City Manager

ATTEST APPROVED AS TO FORM
_________________________________ _________________________________ Myra Maravilla, City Clerk
Michael Jenkins, City Attorney

HERMOSA BEACH ROTARY CLUB
_________________________________
Dean Nota, President
318
7 |ROTARY FARMERS MARKET A G R E E M E N T
EXHIBIT A – Site Map
319
320
321
322
323
324
325
326
327
328
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0356
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

APPROVE OCCUPANCY LICENSE FOR COMMUNITY GARDEN
(Environmental Programs Manager Doug Krauss)
Recommended Action:

Staff recommends City Council:

1. Approve the occupancy license for the Community Garden at South Park (Attachment 1); and

2. Authorize the City Manager to execute and the City Clerk to attest to the agreement subject to approval by the City Attorney.

Executive Summary:

The Community Garden at South Park is a volunteer-run community garden open for use by Hermosa Beach residents. Approval of a new five-year occupancy license would ensure continuity of operation for the garden and its users.

Background:

The City of Hermosa Beach Sustainability Plan (2011) recommended the installation of a Community Garden in the City to educate and engage Hermosa Beach residents in sustainability initiatives, strengthen the community, and reduce emissions associated with transport of food and goods.

In October 2011, a demonstration garden was constructed in South Park located at 425 Valley Drive.

The objective of the demonstration garden was to showcase locally grown organic edibles and native plants, demonstrate the use of composting and worm bins, and water conservation practices. The demonstration garden was removed in 2015 as part of the extensive South Park renovation and a new permanent location for the garden was incorporated into the northeast corner of South Park.

The garden has operated at its current location since 2016 and is managed by volunteer garden managers. The garden manager and volunteers perform most maintenance and upkeep at the garden, with occasional assistance from City staff. All garden plots are consistently occupied by residents and the garden managers administer the ongoing requests of prospective users.

Currently, the fee paid to the Community Garden for using a plot is $50 annually with a required $100 deposit. Interested residents can contact the garden managers via email, as detailed on the City website, to secure a plot in the garden. Users may utilize a specific plot for a maximum of two years.

The two-year rotation ensures that any residents waiting for a plot may also be given the opportunity City of Hermosa Beach Page 1 of 3 Printed on 9/12/2022
powered by Legistar™329
Staff Report
REPORT 22-0356
The two-year rotation ensures that any residents waiting for a plot may also be given the opportunity to participate in the community garden.

Past Council Actions
Meeting Date Description
February 9, 2016 Approved Occupancy License for the Community Garden Discussion:

The Occupancy License between the City and the Community Garden is for the purpose of operating and maintaining the community garden in South Park. Due to the expiration of the prior license, staff recommends approving a new five-year license to ensure continuity of this popular local amenity.

The proposed new Occupancy License (Attachment 1) retains the language of the 2016 license with only minor language updates. The garden would continue to operate in its current manner including the requirement to donate 20 percent of food grown to a local food pantry. The garden users are diligent in honoring the food donation requirement.

The Hermosa Beach Community Garden has been an active member of the Los Angeles Community Garden Council (“LA Garden Council”) since 2012. The LA Garden Council acts as the Garden’s fiscal agency sponsor and manages the Garden’s financial transactions including purchasing the required liability insurance.

City staff would continue to provide outreach to residents on the presence and availability of the garden. The public outreach includes providing information on the City website, posting to social media, and supporting the variety of outreach and activities that garden managers directly administer.

General Plan Consistency:

This report and associated recommendations have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

Parks and Open Space Element
Goal 10. Abundant landscaping, trees, and green space provided throughout the community Policy:
· 10.2 Non-invasive landscapes. Encourage the planting of native, non-invasive, and drought tolerant landscaping and trees, and encourage the planting of edible landscapes and fruit trees
Fiscal Impact:

No monetary consideration is required in exchange for the rights to this occupancy license agreement. City staff assists with various related maintenance concerns on an as-needed basis.

City of Hermosa Beach Page 2 of 3 Printed on 9/12/2022
powered by Legistar™330
Staff Report
REPORT 22-0356
Attachments:

1. Proposed Occupancy License

2. Existing Occupancy License

3. Link to February 9, 2016 Staff Report
Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 3 of 3 Printed on 9/12/2022
powered by Legistar™331

CITY OF HERMOSA BEACH

OCCUPANCY LICENSE FOR COMMUNITY GARDEN
Term: 5 Years (renewable) Effective Date:
06/15/2022
License Holder:

Hermosa Beach Community Garden
332
1 | P a g e

CITY OF HERMOSA BEACH
Occupancy License for Community Garden in South Park
This Occupancy License for Community Garden ("License Agreement" or "License") is made and entered into this 15th day of June, 2022, by and between the CITY OF HERMOSA BEACH ("City") and HERMOSA BEACH COMMUNITY GARDEN, an unincorporated association ("Licensee") for the purpose of operation and maintenance of a community garden in the northeast corner of South Park.

RECITALS
A. Licensee desires the exclusive occupancy of a designated portion of the northeast corner of South Park to operate a community garden for the benefit of the Hermosa Beach community.

B. Licensee represents and warrants that it possesses the qualifications, experience and expertise to operate a community garden.

C. A community garden is a use consistent with park and open space purposes that will enhance the overall appearance and use of South Park, and provide a outdoor recreational opportunity for City residents of all ages.

NOW, THEREFORE, in consideration of the abovementioned, the parties do hereby agree as follows:

1. Location. The area to be governed by this License Agreement is approximately 3,721 square feet of the northeast corner of South Park ("Licensed Premises"), as shown on the site plan attached hereto as "Exhibit A" and incorporated herein by reference.

2. Use of Licensed Premises. At all times the Licensee shall manage and operate the Licensed Premises exclusively for the purpose of operating a community garden in accordance with the terms and provisions of this License Agreement. The Licensed Premises shall not be used by Licensee for any other purpose. Licensee shall educate and inform City residents of the existence and availability of the garden. Licensee shall immediately inform City of any changes to garden management personnel and provide management contact information to City staff.

3. Licensed Premises Improvements. The Licensed Premises will be delivered to the Licensee in "AS IS" condition and Licensee accepts the Licensed Premises in the condition it is in at the time of delivery and shall thereafter maintain it in good condition free of debris, litter and trash. Any alterations to the Licensed Premises for its use as a community garden shall be at Licensee’s expense, and shall be subject to the prior written approval of City. Signs, if any, shall be subject to City approval.

Artificial lighting is prohibited.

4. Term of License. This License is awarded for a period of five (5) years (the "License Term"), commencing when the City issues a Notice to Proceed, unless earlier terminated as provided in Section 9 hereof. This License may be renewed for additional terms upon its expiration, if the parties mutually agree in writing. City reserves the right to alter the terms of the License upon extension.

5. Operating Hours. The community garden may be open for gardening activities daily between sunrise and sunset. The garden shall be closed and secured between sunset and sunrise. 333
2 | P a g e

6. Operating Rules. Initial assignment of garden plots shall be based on the date and time of the sign-up during the ongoing enrollment period- a lottery will not be used. Licensee shall maintain a wait list in the order in which applications for use of a garden plot are received. Garden plots may be assigned for not longer than two (2) year terms. A term may not be renewed with the incumbent gardener as long as there is someone on the wait list. Gardeners shall not grow marijuana (cannabis) or any crop that is illegal under State or federal law. Gardeners shall adhere to the rules set forth in Exhibit B attached hereto and incorporated herein by reference.

7. Consideration. In light of the benefits provided to the community by the community garden, no monetary consideration shall be required in exchange for the rights granted by this License Agreement. That notwithstanding, (a) 20% of the food grown in the garden shall be donated to a food pantry approved by the City, pursuant to a contract between Licensee and the food pantry that shall be subject to City review and approval; (b) neither Licensee nor any gardener shall sell any food grown in the Licensed Premises; and (c) Fees charged to gardeners for use of a plot in the community garden shall be subject to advance City approval. The Garden Manager shall also provide information to the City concerning food donation and general garden status upon request.

8. Utilities and Maintenance of the Licensed Premises.
(a) Licensee shall be responsible for all maintenance.
(b) Licensee hereby agrees that it has received the Licensed Premises in satisfactory condition. Licensee shall clean and maintain the Licensed Premises, and shall keep it in clean, orderly and sanitary condition at all times throughout the License Term. (c) Licensee assumes responsibility for all damage to City's property caused by its use of the Licensed Premises and shall reimburse City for correction of any such damage. (d) City staff may remove, or require to be removed, any plants, structures or other materials at its sole discretion and will promptly notify Garden Manager

9. Termination and Revocation of License. This License may be terminated with or without cause by either party by providing written notice to the other party at least sixty (60) days in advance of desired termination date. Licensee expressly acknowledges that City's plans for and/or use of the Licensed Premises may change at any time in a manner inconsistent with this License and that Licensee has no permanent right to the continued use of the Licensed Premises, nor does this License give rise to any such right, title or interest in the Licensed Premises. In the event of termination, Licensee shall remove all of its equipment and materials from the Licensed Premises, vacate the Licensed Premises within five (5) working days, surrender this License, and deliver the Licensed Premises in a clean, sanitary condition substantially the same as when the Licensed Premises was delivered to Licensee.

10. Insurance Requirements.
a. Licensee shall have insurance in the following amounts:
(1) General liability insurance with at least One Million Dollars ($1,000,000) combined single-limit coverage per occurrence for bodily injury and property damage; and (2) Workers' compensation and employer's liability insurance as required by the California Labor Code, as amended.
///
334
3 | P a g e
///
335
4 | P a g e
b. Each insurance policy required above shall be acceptable to the City Attorney:
(1) The General Liability policy shall name the City specifically and separately as an additional insured under the policy by a valid endorsement. (2) Provide for written notice within 30 days or less of policy cancellation or termination; (3) Provide coverage by a Best's A-V rated carrier or better, admitted in California; (4) Provide a service of suit endorsement for all carriers not admitted in California; and (5) Provide that the City may pay any self-insured retention or deductible should Licensee fail or refuse to do so.
c. Failure to comply with insurance requirements under this Agreement shall be a material breach of this Agreement.

11. Indemnification. Licensee (which in this paragraph includes its employees, agents, or subcontractors) shall indemnify, defend and hold harmless the City of Hermosa Beach, its officers, agents and employees from any and all loss, damage, liability, cost or expenses, including attorneys' fees, expert fees and costs of suit, for any of the following: a) Any personal injuries, property damage or death that Licensee or its invitees and guests may sustain while using the Licensed Premises, or from any dangerous condition of the Licensed Premises; and b) Any claim of liability to third parties arising out of Licensee's negligence or wrongful or acts or omissions, excepting only liability caused by the sole negligence or wrongful conduct of the City.

12. Anti-Assignment Clause. Licensee shall not assign, delegate, transfer or sublicense any duty or right under this License, or any portion of the Licensee’s use of the Licensed Premises. Any such purported assignment, delegation, transfer or sublicense shall be void unless the City has previously approved such action in writing.

13. Costs and Attorney's Fees. In the event of litigation brought by either party to this License Agreement to enforce any provisions of this Agreement, the prevailing party shall be entitled to an award of reasonable attorney's fees and costs of suit incurred pursuant to said litigation.

14. Licensee not a Lessee. No legal title or leasehold interest in the Licensed Premises shall be deemed or construed to have been created or vested in the Licensee by anything contained in this License Agreement.

15. Provisions Cumulative. The foregoing provisions are cumulative and in addition to and not in limitation of any other rights or remedies available to the City.

16. Merger Clause. This License Agreement and its Exhibits are the entire understanding of the parties, and there are no other terms or conditions, written or oral, controlling this matter. In the event of any conflict between the provisions of this License Agreement and its Exhibits, the provisions of this License Agreement shall prevail.

17. Anti-Waiver Clause. None of the provisions contained herein shall be waived because of previous failure to insist upon strict performance, nor shall any provision be waived because any other provision has been waived, in whole or in part.

18. Severability. The invalidity in whole or in part of any provision of this agreement shall not void or affect the validity of any other provisions of this License Agreement. ///
///
336
5 | P a g e

19. Notices to Parties. Any statements, communications or notices to be provided pursuant to this Agreement shall be sent to the attention of the persons indicated below, until such time as notice of any changes of person to be notified or change of address is forwarded to all parties:

Licensee:

Hermosa Beach Community Garden
City:

City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
Attn: City Manager

20. Choice of Law. This Agreement shall be governed by the laws of the State of California. Venue for any action arising from this Agreement, including but not limited to matters concerning validity, construction, performance or enforcement shall be exclusively in the state or federal courts located in Los Angeles County, California.

21. Possessory interest. Licensee acknowledges that this License may create a taxable possessory interest subject to property taxation, and that Licensee shall be solely responsible for satisfaction of any property taxes levied in connection with this License.

22. City’s Access to Licensed Premises. Licensee acknowledges the City's absolute right to enter the License Premises in order to assure Licensee's compliance with the terms of this License.

23. Non-Discrimination. Licensee represents and agrees that it does not and will not in the operation of the community garden pursuant to this License discriminate against any person because of race, religion, color, medical condition, sex, sexual orientation, national origin, political affiliation or opinion, or pregnancy or pregnancy-related condition.

IN WITNESS WHEREOF, this Agreement has been executed on behalf of the City by its Officer thereunto authorized and by Licensee, the date and year first above written.

CITY OF HEMOSA BEACH
A Municipal Corporation

HERMOSA BEACH COMMUNITY GARDEN
Suja Lowenthal, City Manager
Date:

Date:

APPROVED AS TO FORM:

By:

Michael Jenkins, City Attorney
ATTEST:

Myra Maravilla, City Clerk
337

COMMUNITY GARDEN

EXHIBIT A
New Park Restroom
338
339
340
341
342
343

COMMUNITY GARDEN

EXHIBIT A
344
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0376
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of June 14, 2022

APPROVAL OF ROAD REPAIR AND ACCOUNTABILITY
ACT OF 2017 (SENATE BILL 1) PROJECT LIST FOR THE
CITY OF HERMOSA BEACH FOR FISCAL YEAR 2022-23
(Public Works Director Joe SanClemente)
Recommended Action:

Staff recommends City Council:

1. Approve a resolution (Attachment 1) adopting a list of projects for Fiscal Year 2022-2023 funded by Senate Bill 1 (SB 1) Road Repair and Accountability Act of 2017; and

2. Direct staff to submit the project list (Attachment 2) and supporting documentation to the California Transportation Commission by July 1, 2022.

Executive Summary:

Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017, provides funding for the maintenance and repair of local streets and roads through a Road Maintenance and Rehabilitation Account (RMRA). To be eligible for Fiscal Year 2022-2023 funding, the City must submit a project list to the California Transportation Commission (CTC) by July 1, 2022, along with a resolution documenting the approval of the City's project list.

Background:

On April 28, 2017, the Governor of California signed Senate Bill (SB 1) (Beall, Chapter 5, Statutes of 2017), known as the Road Repair and Accountability Act of 2017, to address basic road maintenance, rehabilitation, and critical safety needs on both the state highway and local streets and road system. SB 1 increases per gallon fuel excise taxes, increases diesel fuel sales taxes and vehicle registration fees, and provides for inflationary adjustments to tax rates in future years.

A percentage of this funding is apportioned by formula to eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. The projected revenue for the City of Hermosa Beach in Fiscal Year 2022-23 is $444,633.

SB 1 revenue is not intended to replace existing local discretionary funding, such as General Fund or Capital Improvement Funds, for road repair and maintenance projects. Therefore, it requires cities City of Hermosa Beach Page 1 of 5 Printed on 9/12/2022
powered by Legistar™345
Staff Report
REPORT 22-0376
Capital Improvement Funds, for road repair and maintenance projects. Therefore, it requires cities and counties to maintain their existing commitment of local funds for street, road, and highway purposes in order to remain eligible for Road Maintenance and Rehabilitation Account (RMRA) funding apportionment as defined by a Maintenance of Effort (MOE) estimate. The MOE estimate establishes the minimum amount of funding that the City of Hermosa Beach must continue to allocate on an annual basis toward street and highway projects from local discretionary funds.

The State Controller’s Office (SCO) completed its review of the City’s certified General Fund discretionary expenditures for street purposes for the period of July 1, 2009 through June 30, 2012.

Based on the review, the SCO set the City’s MOE at $833,246.

The City is required to submit a list of projects (Attachment 2) to the California Transportation Commission each fiscal year. The FY 2022-23 list is due to the Commission by July 1, 2022. The City is also required to develop and submit a project expenditure report to the Commission by October 1, 2022 for the FY 2021-22 expenditures and comply with all requirements including reporting requirements for RMRA funding.

RMRA funding may be used for basic road maintenance, rehabilitation, and critical safety projects on the local streets and roads system. Streets and Highways Code (SHC) Section 2030 provides a number of example projects and uses for RMRA funding that include, but are not limited to, the following:
· Road Maintenance and Rehabilitation;
· Safety Projects;
· Railroad Grade Separations;
· Traffic Control Devices; and
· Complete Streets Components, including active transportation purposes, pedestrian and bicycle safety projects, transit facilities, and drainage and stormwater capture projects in conjunction with any other allowable project.

Additionally, RMRA projects may incorporate, where feasible, the following project elements:
· Technologies and material recycling techniques that lower greenhouse gas emissions and reduce the cost of maintaining local streets and roads through material choice and construction method;
· Systems and components in transportation infrastructure that recognize and accommodate technologies including but not limited to Zero Emissions Vehicle (ZEV) fueling or charging and infrastructure-vehicles communications for transitional or fully autonomous vehicles; · Project features that increase resilience to the impacts of climate change, fires, floods, and City of Hermosa Beach Page 2 of 5 Printed on 9/12/2022
powered by Legistar™346
Staff Report
REPORT 22-0376
sea level rise; and
· Complete Streets elements that improve the quality of bicycle and pedestrian facilities and that improve safety for all users of transportation facilities.

A city or county may spend its apportionment of RMRA funds on transportation priorities other than those outlined in SHC Section 2030 if the city or county’s average Pavement Condition Index (PCI) meets or exceeds 80. Hermosa Beach currently has an average Pavement Condition Index below

80. Therefore, the City must spend the available funding on the types of projects identified above.

RMRA funds may also be used to satisfy a match requirement in order to obtain state or federal funds for eligible projects.

Analysis:

Based on the expected revenues available for Fiscal Year 2022-23, staff has identified projects that meet the Street and Highway Code guidance for projects for this year’s list. The recommended projects are described below and in Attachment 2.

CIP 143-PCH Mobility Improvement Project
Total Fiscal Year 2022-2023 Budget: $75,000
CIP 143 would improve accessibility, mobility, and safety along the Pacific Coast Highway corridor.

CIP 160-PCH Traffic Improvements
Total Fiscal Year 2022-2023 Budget: $300,000
CIP 160 would improve operational mobility along Pacific Coast Highway. The project also includes improvements including but not restricted to truck turning radius, ADA curb ramps, striping, and pedestrian signal improvements.

CIP 188-Strand Bikeway and Walkway Improvements at 35th Street Total Fiscal Year 2022-2023 Budget: $300,000
CIP 188 would improve accessibility and connectivity for bicyclists traveling between the Cities of Hermosa Beach and Manhattan Beach via The Strand at 35th Street.

CIP 191-Annual Street Improvements
Total Fiscal Year 2022-2023 Budget: $1,700,000
CIP 191 proposes pavement rehabilitation of streets at various locations. The project will also address limited quantities of deteriorated concrete sidewalk, curb and gutter, curb ramps and City of Hermosa Beach Page 3 of 5 Printed on 9/12/2022
powered by Legistar™347
Staff Report
REPORT 22-0376
drainage deficiencies.

CIP 195-City Sidewalk Improvements
Total Fiscal Year 2022-2023 Budget: $150,000
CIP 195 provides repairs, replacements, and improvements to sidewalks throughout the City at various locations to maintain and improve safety.

General Plan Consistency:

This report and associated recommendation have been evaluated for their consistency with the City’s General Plan. Relevant Policies are listed below:

Infrastructure Element
Goal 1. Infrastructure systems are functional, safe, and well maintained.

Policy:
· 1.2 Priority investments. Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan.

Goal 2. Roadway infrastructure maintenance supports convenient, attractive, and complete streets and associated amenities.

Policy:
· 2.1 Preventive street maintenance. Maintain streets, sidewalks and other public rights-of-way to provide a reliable network for circulation through a proactive preventive maintenance program.
· 2.2 Pavement rating system. Prioritize roadway re-pavement projects by regularly evaluating pavement ratings and identifying roadway segments with the greatest deficiencies. · 2.3 Street and sidewalk standards. Require the use of standardized roadway, sidewalk, parkway, curb and gutter designs to ensure continuity and consistency as property redevelops over time.

Fiscal Impact:

The projected SB 1 revenue for the City in Fiscal Year 2022-23 is $444,633, which would be expended on the projects listed on the Fiscal Year 2022-23 RMRA Project List (Attachment 2).

Attachments:

1. Draft Resolution Adopting a List of Projects for FY 2022-23 Funded by SB1

2. Hermosa Beach Fiscal Year 2022-23 RMRA Project List
City of Hermosa Beach Page 4 of 5 Printed on 9/12/2022
powered by Legistar™348
Staff Report
REPORT 22-0376
Respectfully Submitted by: Andrew Nguyen, Associate Engineer Concur: Lucho Rodriguez, Deputy City Engineer
Concur: Joe SanClemente, Public Works Director
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 5 of 5 Printed on 9/12/2022
powered by Legistar™349