Hermosa Beach City Council
October 11, 2022

Specifically, the IFT Report includes (words and phrases in bold are described in Table 1):
 Historic GHG emissions in community inventories and municipal inventories for 2005, 2007, 2010, and 2012;
 Future GHG emissions for 2020 and 2035 under a business-as-usual forecast scenario and adjusted business-as-usual forecast scenario; and
 Recommended GHG reduction targets for 2020 and 2035.

Table 1. Key Terms in the Report1
Term Definition
Adjusted business-as-usual
A GHG forecast scenario that accounts for known policies and regulations that will affect future emissions. Generally, these are state and federal initiatives that will reduce emissions from the business-as-usual scenario.

Baseline year The inventory year used for setting targets and comparing future inventories against.

Business-as-usual
A GHG forecast scenario that assumes no change in policy affecting emissions since the most recent inventory. Changes in emissions are driven primarily through changes in demographics.

Community Inventory GHG emissions that result from the activities by residents and businesses in the city.

An inventory reports emissions that occur over a single calendar year.

Emission factors The GHG-intensity of an activity.

Municipal Inventory
GHG emissions that result from the activities performed as part of the government operations in the city and are a subset of the community inventory. An inventory reports emissions that occur over a single calendar year.

Reduction targets
GHG emissions levels not to be exceeded by a specific date. Local reduction targets are often informed by state recommendations and different targets may be established for different years.

Sector A subset of the emissions inventory classified by a logical grouping such as economic or municipal-specific category.

1 A glossary of terms is also included as Appendix A.
302
2 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach GHG Emissions Inventories
GHG emissions inventories are the foundation of planning for future reductions. Establishing an existing inventory of emissions helps to identify and categorize the major sources of emissions currently being produced. In this report, four years of historic inventories are presented to show not only the major sources of emissions in the City, but also how those sources vary over time. For both the community and municipal inventories, the years 2005, 2007, 2010, and 2012 are presented. The 2005 inventory (for both community and municipal operations) is considered the baseline year. A baseline year is established as a starting point against which other inventories may be compared and targets may be set, and is generally the earliest year with a full emissions inventory. The most recent inventory (2012) has the most relevant data for planning purposes, while the interim years (2007 and 2010) provide context and may help identify trends or anomalies.

Emissions Reporting
The primary GHGs from the community and municipal operations are from carbon dioxide (CO2), methane (CH4), and nitrous oxide (N2O). Because each of these gases has a different capacity for trapping heat in the atmosphere, known as its global warming potential (GWP), a method of reporting is needed to be able to compare gases in the same terms. As a result, emissions are reported in carbon dioxide equivalents, or CO2e, with each GHG normalized and calculated relative to CO2 using its GWP.

Table 2 describes the GHGs analyzed in this report, their symbol, GWP, and primary community sources of emissions. While N2O has the highest GWP and may be considered the most dangerous on a permolecule basis, CO2 is by far the most prevalent, accounting for 88% of statewide emissions in 2005 (CARB 2011).

Table 2. GHGs Analyzed in the Inventories
Greenhouse Gas Symbol Global Warming
Potential Primary Community Sources
Carbon Dioxide CO2 1 Fossil fuel combustion
Methane CH4 25
Fossil fuel combustion, landfills,
wastewater treatment
Nitrous Oxide N2O 298 Fossil fuel combustion, wastewater treatment
Source: IPCC Fourth Assessment Report, 2007.

Emissions Sectors
The inventories identify the major sources of GHGs emissions caused by activities in sectors that are specific to community or municipal activities. A sector is a subset of the economy, society, or municipal operations whose components share similar characteristics. An emissions sector can also contain subsectors that provide more specificity about the source of emissions (e.g., natural gas and electricity are subsectors of the energy sector).
303
GHG Emissions Inventories 3
As mentioned above, inventories were completed for the community and municipal operations.

Because the majority of municipal activities occur within the boundaries of the City and therefore contribute to the overall emissions of the community, both inventories are interconnected, with the municipal inventory considered a subset of the community inventory. As a result, municipal emissions are included in numbers reported for the community. The municipal inventory is separated to highlight areas of emissions that the City has more direct control over and to identify where they can begin to set examples for the community on how reduction strategies can be implemented.

The following subsections describe the sectors used in the community and municipal inventories. It is important to note that both inventories capture similar types of information but may be categorized differently. For example, energy is reported in both the community and municipal inventory, but community level energy emissions are reported as “Residential” and “Non-residential”, whereas municipal energy emissions are more logically reported as “Buildings & Facilities” and “Streetlights”.2 Community Sectors
The community inventory is categorized by sectors based on the sector’s ability to be affected through regional and local programs, incentives, zoning, and other policies. The City’s community inventories were divided into the following sectors:
 Energy in the Community Inventory is further broken down into two sectors:
o Commercial/Industrial Energy includes emissions from electricity and natural gas consumption in non-residential buildings and facilities (including outdoor lighting) in the City.
o Residential Energy includes emissions from electricity and natural gas consumption in residential buildings in the City.
 On-road Transportation includes emissions from vehicle fuel use in trips wholly within the City (in-boundary) and trips that either originate or end in the City (cross-boundary). Emissions from in-boundary trips are fully accounted for in the inventory, whereas only half of the emissions from cross-boundary trips are accounted for. Trips that pass-through the City, (such as on State Route 1) are not accounted for in the inventory because the City has little or no control of these emissions. As a result, this methodology reflects only trips or parts of trips within City borders that the City has the ability to affect.
 Solid Waste includes emissions from waste that is generated in the community and sent to landfills.
 Water includes emissions from the electricity used to source, treat, and deliver imported water in the community that is not accounted for in the community utility data.  Wastewater includes emissions from treating wastewater generated in the community.

2 Streetlights are further categorized as SCE-owned or City-owned as described later. 304
4 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach  Off-road Sources include emissions from operating equipment for construction, commercial, light industrial and agricultural activities; lawn and garden equipment; and recreational vehicles such as all-terrain vehicles.

Municipal Sectors
Sources of municipal emissions are divided into the following sectors:
 Energy in the municipal inventory is further broken down into four sectors:
o Buildings and Facilities includes energy use by the government, including electricity and natural gas.
o SCE-owned Outdoor Lighting includes energy for streetlights on fixtures owned by SCE and outdoor lighting.
o City-owned Outdoor Lighting includes energy for streetlights on fixtures owned by the City, traffic control signals, and outdoor lighting.
o Water Pumping & Irrigation includes energy for water pumping and irrigation.  Vehicle Fleet & Equipment includes emissions from vehicles owned or operated by the government or contracted by the City for services such as street cleaning. It also includes equipment, such as emergency generators.
 Employee Commute includes emissions from fuel use in vehicle trips by municipal employees commuting to and from work in the City.
 Solid Waste includes emissions from waste generated by municipal employees or at municipally owned facilities.

Calculation Methodology
GHG emissions were calculated using activity data available (e.g., kilowatt-hours of electricity) for each sector and protocols for converting activity data to emissions output using relevant emission factors.

Emission factors relate the activity to GHG emissions and may vary by year (e.g., for electricity) and often are not affected by local actions or behavior, unlike activity data. The U.S. Community Protocol for Accounting and Reporting Greenhouse Gas Emissions (ICLEI 2012) and the Local Government Operations Protocol for the Quantification and Reporting of GHG Emissions Inventories (LGOP) (CARB 2010) were the primary protocols used for developing the community and municipal inventories, respectively.

Activity data are reported in the community and municipal emissions subsections below, and emission factors are detailed in Appendix B.

Community Emissions
The community inventory includes the GHG emissions that result from activities within City boundaries.

This section presents the findings of the community inventory for four years: 2005 (baseline year), 2007, 2010, and 2012. It also provides more specific detail and findings on the energy sectors, which will form the basis of the reduction targets and reduction measures the City identifies in the EECAP. 305
GHG Emissions Inventories 5
2005—2012 Emissions Summary
 The City of Hermosa Beach reduced emissions 7.7% from 2005 to 2012, from 137,160 MT CO2e to 126,611 MT CO2e.
 On-Road Transportation, Commercial Energy, Solid Waste, Water, and Off-Road Sources sector emissions decreased while Residential Energy and Wastewater sectors increased emissions from 2005 to 2012.

As shown in Figure 1 and Table 3, the On-Road Transportation sector was the largest contributor to emissions in both 2005 (54%) and 2012 (54%) by producing 73,567 MT CO2e in 2005 and 68,235 MT CO2e in 2012. This change represents a 7.2% decrease in emissions from 2005 to 2012. Residential energy is the second-largest contributor to emissions, accounting for 23% of emissions in 2005 and 27% in 2012. This change represents a 4.7% increase from 2005 to 2012, from 32,293 MT CO2e to 33,808 MT CO2e. The proportion of emissions from the Commercial sector decreased 12.7% from 2005 to 2012, from 20,280 MT CO2e to 17,830 MT CO2e. Solid waste comprised 4% of the total (6,015 MT CO2e) in 2005, but accounted for 3% of the total (3,334 MT CO2e) in 2012. Water, Wastewater, and Off-road sources made up the remaining emissions in each year. Water and Off-Road Transportation emissions declined from 2005 to 2012; however, Wastewater sources increased 13.5% (from 52 to 59 MT CO2e) in the same period.

Figure 1. Community-Wide GHG Emissions by Sector for 2005 and 2012 54%
15%
23%
4% 3% <1%
1%
2005
54%
14%
27%
3%
2%
<1% <1%
2012
On-Road Transportation Commercial Energy
Residential Energy Solid Waste
Water Wastewater
Off-Road Sources
306
6 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 3. Community-Wide GHG Emissions by Sector for 2005 and 2012 Sector 2005
(MT CO2e)
2012
(MT CO2e)
% Change
2005 to 2012
On-Road Transportation 73,567 68,235 -7.2%
Residential Energy 32,293 33,808 4.7%
Commercial Energy 20,280 17,830 -12.1%
Solid Waste 6,015 3,334 -44.6%
Water 4,065 2,600 -36.0%
Off-Road Sources 888 745 -16.1%
Wastewater 52 59 13.5%
Total 137,160 126,611 -7.7%
2005, 2007, 2010, and 2012 Inventories
Figure 2 and Table 4 show the GHG emissions by sector for all inventory years. Emissions are variable among the inventory years, and may reflect changes in the economy, weather, and programs implemented to reduce emissions. The table also lists the percentage of each sector relative to total emissions and shows that the proportion of each sector does not vary greatly by year.

Figure 2. Community GHG Emissions for 2005, 2007, 2010, and 2012 -
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2005 2007 2010 2012
MT CO2e
Off-Road Sources
Wastewater
Water
Solid Waste
Residential Energy
Commercial Energy
On-Road
Transportation
307
GHG Emissions Inventories 7
Table 4. Community GHG Emissions for 2005, 2007, 2010, and 2012 Sector 2005
(MT CO2e)
% of
Total
2007
(MT CO2e)
% of
Total
2010
(MT CO2e)
% of
Total
2012
(MT CO2e)
% of
Total
On-road
Transportation 73,567 54% 71,863 54% 70,277 55% 68,235 54% Residential Energy 32,293 24% 31,964 24% 32,700 26% 33,808 27% Commercial Energy 20,280 15% 19,792 15% 18,372 14% 17,830 14% Solid Waste 6,015 4% 4,584 3% 3,510 3% 3,334 3%
Water 4,065 3% 3,942 3% 2,552 2% 2,600 2%
Off-Road Sources 888 1% 588 <1% 419 <1% 745 1%
Wastewater 52 <1% 35 <1% 59 <1% 59 <1%
Total 137,160 132,768 127,889 126,611
% Change from
2005 -- -3.2% -6.8% -7.7%
Activity data can provide more insight into behavioral changes in the community, as these data are not affected by emission factors. Table 5 summarizes activity data for each sector and subsector. The activity data show that residential electricity, natural gas (residential and non-residential), wastewater, industrial off-road sources, and light commercial off-road sources increased from 2005 to 2012, while on-road transportation, commercial electricity, solid waste, water, recycled water, and off-road sources (lawn & garden, construction, recreation, and agriculture) decreased from 2005 to 2012. Wastewater and Off-road emissions use indicator data to attribute county-level emissions to the City and the indicator data are also shown in Table 5.

Demographic data also help provide perspective to changes in emissions over time. Table 6 shows the number of households, jobs, population, and service population (jobs + population) for each inventory year. Energy emissions in particular often reflect trends in demographic data. For example, the slight increase in population and households between 2005 and 2012 may explain some of the increase in Residential Energy emissions.
308
8 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 5. Activity Data used in 2005, 2007, 2010, and 2012 Community Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
On-road Transportation
Total Vehicle Miles Traveled 140,684,101 138,727,165 139,197,605 138,350,955 -1.7% Residential Energy
Electricity (kWh) 47,843,215 49,976,195 49,906,427 49,778,450 4.0% Natural Gas (therms) 3,339,783 3,305,637 3,448,010 3,364,392 0.7% Commercial Energy
Electricity (kWh) 51,741,467 52,130,513 48,545,739 41,191,832 -20.4% Natural Gas (therms) 857,687 900,024 827,116 875,986 2.1% Solid Waste
Landfilled (tons) 24,578 18,490 14,230 13,511 -45.0%
ADC (tons) 1246 180 50 48 -80.7%
Water and Wastewater
Water (MG) 760.2 760.2 687.7 700.3 -7.9%
Recycled Water (MG) 30.9 30.9 26.4 27.7 -10.3%
Wastewater (City portion of
countywide residents) 0.20% 0.20% 0.20% 0.20% 0.5%
Off-road sources2(% of LA County emissions attributed to the City) Lawn & Garden (% Households) 0.30% 0.29% 0.29% 0.29% -1.7% Construction (% Building
permits) 0.32% 0.20% 0.13% 0.24% -25.7%
Industrial (% Manufacturing
Jobs) 0.03% 0.03% 0.03% 0.03% 4.3%
Light Commercial (% Other
jobs) 0.17% 0.17% 0.17% 0.18% 5.9%
Recreation (Population
weighted by income) 0.36% 0.36% 0.35% 0.34% -6.3%
Agriculture (% Ag. Jobs) 0.10% 0.11% 0.06% 0.08% -17.6% 1 ADC is Alternative Daily Cover, which is green waste (grass, leaves, and branches) that is used to cover landfill emissions. They are reported separately by CalRecycle and therefore shown separately here. 2 Off-road emissions are available at the county level through CARB’s OFFROAD model. Emissions attributable to the City were derived using indicator data related to the off-road source. For example, the percentage of households in the City compared to the county was used to attribute the same percentage of lawn & garden equipment emissions to the City. See Appendix B for more methodology details.
309
GHG Emissions Inventories 9
Table 6. Demographic Data for 2005, 2007, 2010, and 2012 2005 2007 2010 2012 % Change
2005-2012
Service Population (Population + Jobs) 26,199 26,421 26,173 26,419 0.8% Population 19,340 19,174 19,477 19,574 1.2%
Households 9,507 9,457 9,550 9,548 0.4%
Jobs 6,859 7,247 6,696 6,845 -0.2%
Energy
The EECAP ultimately will focus on increasing energy efficiency and reducing GHG gases from energy; therefore, it is important for the City to understand its current energy consumption to make informed decisions for reducing energy-related emissions. Energy use consists of electricity and natural gas.

Emissions from Commercial/Industrial and Residential energy use account for about 40% of the total community emissions in 2005 and 2012. Table 7 shows the breakdown in activity (kWh or therms) and GHG emissions by sector and energy source.

Table 7. Activity Data and GHG Emissions of Energy in 2005 and 2012 Sector
2005 2012
% Change in
Activity
2005-2012
% Change in
Emissions
2005-2012
Activity
(kWh or
therms)
Emissions
(MT CO2e)
Activity
(kWh or
therms)
Emissions
(MT CO2e)
Commercial/ Industrial
Electricity 51,741,467 15,719 41,191,832 13,172 -20.4% -16.2% Natural Gas 857,687 4,561 875,986 4,658 2.1% 2.1%
Residential
Electricity 47,843,215 14,534 49,778,450 15,918 4.0% 9.5% Natural Gas 3,339,783 17,759 3,364,392 17,890 0.7% 0.7% Total (MT CO2e) 52,573 51,638 -1.8%
310
10 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Commercial electricity use decreased 20.4%
between 2005 and 2012; emissions decreased by
more than 16%. Residential electricity use
increased by about 4% but emissions increased by
more than 9%. These changes are due to the
emission factor used for electricity for 2005 and
2012. Emission factors convert activity data into
GHG emissions and electricity emission factors
vary annually based on how electricity is
generated by the electricity provider (i.e., the
amount of renewables, natural gas, coal, etc.). In
2005, Southern California Edison (SCE) generated
electricity that resulted in an emission factor of 669.7 CO2e. In 2012, SCE’s electricity generation resulted in an emission factor of 705.0 CO2e. Therefore, a kilowatt-hour of electricity used in 2012 emitted more GHGs than a kilowatt-hour of electricity used in 2005. Future emissions could increase or decrease based on changes to SCE’s emission factors, which the City cannot directly affect, or through changes in usage, which can be affected by changes in local policy, outreach, or incentive programs.

Unlike electricity, the emission factor for natural gas is estimated on a national basis and remains fairly constant over time. Therefore, the natural gas GHG emissions follow the same trend as usage. In Hermosa Beach, Commercial/Industrial natural gas consumption (therms) decreased by 2.1% from 2005 to 2012; therefore the emissions also declined 2.1%. Residential natural gas therms used and GHG emissions declined nearly 0.7% from 2005 to 2012. Figure 3 shows the trend in electricity and natural gas emissions from 2005 to 2012 for the Commercial/Industrial and Residential sectors.

Electricity-Related Emissions
All emissions are comprised of activity data and
the emission factor, or GHG-intensity, of that
activity. For electricity, the activity data are the
kilowatt-hours (kWh) used by the city’s residents
and businesses and the energy intensity is based
on the sources of power that Southern California
Edison uses to generate electricity. Changes to
either component can affect the GHG emissions
from electricity in the City.
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
Electricity Natural Gas Electricity Natural Gas
Commercial Residential
MT CO2e
2005 2012
Figure 3. GHG Emissions for Community Electricity and Natural Gas, by Sector 311
GHG Emissions Inventories 11
Municipal Emissions
As described earlier, a municipal GHG emissions inventory is a subset of the community inventory. The municipal inventory includes emissions from activities conducted as part of government operations in the City. While emissions from government operations are normally a fraction of the overall community emissions, the City has the most direct control over municipal emissions and the City can demonstrate leadership in the community by adopting and implementing energy and GHG reduction strategies. This section presents the findings of the municipal inventory for 2005 (the baseline year), 2007, 2010, and 2012. It also provides more specific detail and findings on the energy sectors, which will form the basis of the reduction measures the City identifies in the EECAP. 2005—2012 Emissions Summary
 Municipal emissions have decreased nearly 9% from 2005 to 2012, from 1,501 MT CO2e to 1,372 MT CO2e.
 The sector with the greatest reductions was Employee Commute, which decreased 130 MT CO2e between 2005 and 2012.
 Emissions from municipal operations account for 1% of community emissions.

The City’s Employee Commute is the sector with the largest percentage of emissions in 2005 (23%) and decreased to the third-largest contributor in 2012 (16%) as emissions from this sector decreased 37% over the period (Figure 4). The second largest-emitting sector for 2005 and 2012 was Buildings & Facilities, accounting for 20% of emissions in 2005 and 22% of emissions in 2012 (increasing from 301 MT CO2e to 305 MT CO2e). The Fleet & Equipment sector contributed 227 MT CO2e (15% of total emissions) in 2005 and increased by 44% 2012 (to 328 MT CO2e, or 24% of total emissions), making this sector the largest emissions sector in 2012. Emissions from Solid Waste declined 25% over the period (from 215 to 162 MT CO2e). Emissions from SCE-owned Outdoor Lights increased 4% from 2005 to 2012, while City-owned Outdoor Lights emissions decreased by 19% from 2005 to 2012. The smallest sector, Water Pumping & Irrigation, decreased emissions from 5 MT CO2e in 2005 to less than 1 MT CO2e between 2005 and 2012. The 2005 and 2012 emissions and changes are detailed in Table 8. 312
12 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 8. Municipal GHG Emissions by Sector for 2005 and 2012 Sector 2005
(MT CO2e)
2012
(MT CO2e)
% Change
2005 to 2012
Employee Commute 348 218 -37%
Buildings & Facilities 301 305 1%
Outdoor Lights—City-Owned 264 213 -19%
Fleet & Equipment 227 328 44%
Solid Waste 215 162 -25%
Outdoor Lights—SCE-Owned 141 146 4%
Water Pumping & Irrigation 5.0 0.6 -87%
Total 1,501 1,372 -8.6%
Note: City-Owned Outdoor Lights includes streetlights, traffic signals, and area lighting. SCE-Owned Outdoor Lights includes streetlights and outdoor lighting.
20%
15%
23%
14%
10%
18%
<1%
2005
22%
24%
16%
12%
11%
15% <1%
Buildings & Facilities Fleet & Equipment
Employee Commute Solid Waste
Outdoor Lights—SCE-Owned Outdoor Lights—City-Owned
Water Pumping & Irrigation
2012
Figure 4. Municipal GHG Emissions by Sector for 2005 and 2012 313
GHG Emissions Inventories 13
2005, 2007, 2010, and 2012 Inventories
Figure 5 and Table 9 show the municipal GHG emissions by sector for all four inventory years. Emissions peaked in 2007 (1,541 MT CO2e) and were the lowest in 2010 (1,340 MT CO2e).

Figure 5. Municipal GHG Emissions for 2005, 2007, 2010, and 2012 Table 9. Municipal GHG Emissions for 2005, 2007, 2010, and 2012 Sector
2005
(MT
CO2e)
% of
Total
2007
(MT
CO2e)
% of
Total
2010
(MT
CO2e)
% of
Total
2012
(MT
CO2e)
% of
Total
Employee Commute 348 23% 333 22% 274 20% 218 16%
Buildings & Facilities 301 20% 333 22% 276 21% 305 22%
Outdoor Lights—CityOwned 264 18% 258 17% 185 14% 213 16% Fleet & Equipment 227 15% 270 18% 320 24% 328 24%
Solid Waste 215 14% 213 14% 162 12% 162 12%
Outdoor lights—SCEOwned 141 9% 134 9% 122 9% 146 11%
Water Pumping &
Irrigation 5.0 0% 0.49 0% 0.55 0% 0.64 0%
Total 1,501 1,541 1,340 1,372
0 200
400
600
800
1,000
1,200
1,400
1,600
2005 2007 2010 2012
MT CO2e
Water Pumping & Irrigation
Outdoor Lights—SCE-Owned
Solid Waste
Fleet & Equipment
Outdoor Lights—City-Owned
Buildings & Facilities
Employee Commute
314
14 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 10 summarizes activity data for each sector and subsector. City-Owned Fleet showed significant increases in compressed natural gas (CNG) and diesel fuel used, which reflects the increase in Fleet & Equipment emissions. The significant decrease in Employee Commute reflects the change in City employees from 2005 to 2012, which decreased 34%.

Table 10. Activity Data used in 2005, 2007, 2010, and 2012 Municipal Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
Buildings & Facilities
Electricity (kWh) 895,746 932,207 883,858 915,327 2%
Natural Gas (therms)15,383 11,977 4,621 2,542 -53%
Outdoor Lights
City-Owned Electricity (kWh) 868,589 895,841 643,360 664,636 -23% SCE-Owned Electricity (kWh) 464,752 466,608 424,794 455,210 -2% Fleet & Equipment
City-Owned Fleet
Gasoline (gallons) 12,665 17,406 20,481 20,341 61%
Diesel (gallons) 2,584 2,584 4,121 5,502 113%
LPG (gallons) - - 36 23 NA
CNG (standard cubic feet) 13,377 13,377 81,114 98,658 638% Contracted2
Gasoline (gallons) 3,640 3,640 3,640 3,640 0%
Diesel (gallons) 2,057 2,057 2,057 2,057 0%
LPG (gallons) 5,127 5,127 5,127 5,127 0%
Employee Commute
Gasoline (gallons) 794,170 760,056 634,526 506,797 -36% Diesel (gallons) 26,784 35,852 25,110 20,055 -25%
# Full Time Employee
Equivalents 186 184 154 123 -34%
Solid Waste2
Generated Waste (tons) 666 660 660 660 -1%
Water Pumping & Irrigation
Electricity (kWh) 17,033 1,712 1,907 1,999 -88%
1 Contracted fuel use was not available for 2010 and 2012. Data from 2007 were used. 2 Solid Waste data for 2010 and 2012 assumed 2007 values. 315
GHG Emissions Inventories 15
Energy
As with the community emissions, the EECAP will focus on increasing energy efficiency and reducing GHG gases from energy within municipal operations. The City has more direct control over energyrelated emissions than other sectors, such as employee commute. Municipal energy use includes Buildings & Facilities, SCE-owned Outdoor Lighting, City-owned Outdoor Lighting, and Water Pumping & Irrigation. Energy accounted for 47% of total emissions in 2005 and 48% in 2012. While both electricity and natural gas are used for Building & Facilities, Outdoor Lighting and Water Pumping & Irrigation only use electricity. Emissions from energy declined 7% from 2005 to 2012; electricity-based emissions declined almost 5% and natural gas related emissions decreased 52% (Table 11). As with community energy, municipal emissions use variable electricity emission factors and constant natural gas emission factors.

Table 11. Activity Data and GHG Emissions of Energy in 2005 and 2012 Sector
2005 2012 % Change
in Activity
2005-2012
% Change in
Emissions
2005-2012
Activity (kWh
or Therms)
Emissions
(MT CO2e) Activity (kWh) Emissions (MT CO2e)
B&F (kWh) 895,746 272 915,327 291 2% 7%
Outdoor Lighting—
City (kWh) 868,589 264 664,636 213 -23% -19%
Outdoor Lighting—
SCE (kWh) 464,752 141 455,210 146 -2% 4%
Water Pumping &
Irrigation (kWh) 17,033 5 1,999 0.64 -88% -87%
B&F (therms) 5,383 29 2,542 14 -53% -52%
Total 2,251,503 711 2,039,714 665 -9% -7%
Note: B&F is Buildings and Facilities.
316
16 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Figure 6 shows the trend in electricity and natural gas emissions from 2005 to 2012 for the municipal energy sectors.

Note: B&F is Buildings and Facilities.

Figure 6. GHG Emissions for Municipal Electricity and Natural Gas, by Sector -
50 100
150
200
250
300
B&F (Electricity) Outdoor Lighting—
City
Outdoor Lighting—
SCE
B&F (Nat Gas) Water Pumping &
Irrigation
MT CO2e
2005 2012
317
Inventory Forecasts 17
Inventory Forecasts
GHG emissions are forecast using two scenarios: a Business-as-Usual (BAU) and an Adjusted BAU scenario. The BAU scenario describes emissions based on projected growth in population and employment and does not consider policies that will reduce emissions in the future (that is, the policies in place in 2012 are assumed to remain constant through 2035). The Adjusted BAU scenario describes emissions based on projected growth and considers policies that will achieve GHG reductions in the future. Policies, described in detail below, include State-adopted or approved legislation that will affect future emissions. By evaluating the two scenarios, the City can see the effect that existing policies may have on future emissions and be better able to determine how local measures can provide additional reductions. Two future years are forecasted for each scenario: 2020 and 2035. The 2020 forecast year is consistent with the goals identified in Assembly Bill (AB) 32, which identifies a statewide GHG reduction target by 2020. The 2035 forecast year will allow the City to develop long-term strategies to continue GHG reductions beyond 2020.

Business-as-Usual Forecasts
The BAU forecasts estimate future emissions using current (2012) consumption patterns and emission factors with the anticipated growth in the City. Anticipated growth is estimated using data from regional planning scenarios developed by the Southern California Association of Governments (SCAG), the City, and other relevant sources (Table 12). The most relevant growth factors are used to project emissions by sector. For example, future Residential Energy emissions were developed using current energy use per household (from the 2012 inventory) and the anticipated number of households in the future. Actual energy use is a function of several variables, not only the number of households; however, this approach is supported by current protocols and best practices within the State and provides a consistent approach to forecasting. Compound annual growth rates were developed using the growth projections from 2012 to 2020 and from 2021 to 2035, as shown Table 12.

In general, the City is expecting modest growth to 2020 and 2035 as population and jobs are expected to increase. SCAG is projecting fewer vehicle miles traveled from 2012 to 2020 despite population and job growth, but that trend is reversed after 2020, when vehicle miles traveled will again increase. Due to the relatively low growth, the City does not anticipate major staffing changes in its government services. 318
18 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table 12. Growth Factors for 2012, 2020, and 2035
Sector Demographic
Indicator 2012 2020 2035 2012-2020 CAGR1
2020-2035
CAGR1
Transportation Vehicle Miles
Traveled 138,350,955 126,238,272 129,742,671 -1.14% 0.18% Solid Waste,
Water,
Wastewater, OffRoad Sources
Service Population
(Population +
Jobs)
26,419 26,900 27,400 0.23% 0.12%
NA2Population 19,574 19,600 19,700 0.02% 0.03%
Residential
Energy Households 9,548 9,600 9,600 0.07% 0.00%
Commercial/
Industrial Energy Jobs 6,845 7,300 7,700 0.81% 0.36%
Municipal Jobs Municipal
Emissions3
106 F/T
34 P/T
137 F/T
60 P/T
146 F/T
65 P/T 3.9% 0.45%
Source: SCAG 2012.

F/T: Full-time employees; P/T: Part-time employees
1 Compound annual growth rate.
2 Not Applicable. Population data are shown for informational purposes but are not used for forecasting any sector. 3 The number of jobs in the City is used as an indicator for all municipal operation emissions.

Community Business-as-Usual Forecast
 BAU community emissions are expected to decrease 8.1% from baseline levels by 2020 and

5.8% by 2035.

The City’s BAU emissions in 2020 are estimated to be 125,982 MT CO2e, or an 8.1% decrease from baseline (2005) emissions. By 2035, emissions are estimated to decrease 5.8% from the baseline level to 129,157 MT CO2e (Table 13).

Table 13. Community BAU Forecast
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
% Change
2012-2020
2035
(MT CO2e)
%Change
2012-2035
On-Road Transportation 73,567 68,235 66,150 -3% 67,986 0% Residential Energy 32,293 33,808 33,969 0% 33,969 0%
Commercial Energy 20,280 17,830 18,930 6% 19,967 12%
Solid Waste 6,015 3,334 3,391 2% 3,454 4%
Water 4,065 2,600 2,645 2% 2,694 4%
Off-Road Sources 888 745 837 12% 1,026 38%
Wastewater 52 59 60 2% 61 3%
Total 137,160 126,611 125,982 0% 129,157 2%
% Change from 2005 -7.7% -8.1% -5.8%
319
Inventory Forecasts 19
Municipal Business-as-Usual Forecast
 BAU municipal emissions are expected to be 20% higher than baseline levels in 2020 and 28% higher than baseline levels in 2035.

The City is anticipating significant growth in city employees by 2020 or 2035 from current (2012) levels— 36% more full-time equivalent employees in 2020 compared with 2012, and 45% more employees in 2035 compared with 2012. Therefore, the activity data for municipal services is also expected to increase relative to 2012.

Table 14. Municipal BAU Forecast
2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
% Change
2012-2020
2035
(MT CO2e)
% Change
2012-2035
Buildings & Facilities 301 305 400 31% 428 40%
Employee Commute 348 218 286 31% 306 40%
Solid Waste 215 162 213 31% 227 40%
Outdoor Lighting 405 359 471 31% 504 40%
Vehicle Fleet 227 328 430 31% 460 40%
Water Pumping & Irrigation 5.0 0.64 1 56% 1 56%
Total 1,501 1372 1801 31% 1926 40%
% Change from 2005 -9% 20% 28%
Adjusted Business-as-Usual Forecasts
State legislation has been approved and/or adopted that will reduce GHG emissions in the City. These policies do not require additional local action, but should be accounted for in the City’s emissions forecasts to provide a more accurate picture of future emissions and the level of local action needed to reduce emissions to levels consistent with State recommendations. This forecast is called the Adjusted BAU forecast. The measures are described briefly below.

Low Carbon Fuel Standard. The Low Carbon Fuel Standard (LCFS) was developed as a result of Executive Order S-1-07, which mandates that the carbon intensity of transportation fuels in California are lowered 10% by 2020. The State is currently implementing this standard, which is being phased in and will achieve full implementation in 2020.

Assembly Bill (AB) 1493 and Advanced Clean Cars. AB 1493 directed CARB to adopt GHG standards for motor vehicles through model year 2015 that would result in reductions in GHG emissions by up to 25% in 2030. In addition, the State’s Advanced Clean Cars program includes additional components that will further reduce GHG emissions statewide, including more stringent fuel efficiency standards for model years 2017—2025 and support infrastructure for the commercialization of zero-emission vehicles. CARB 320
20 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach anticipates additional GHG reductions of 3% by 2020, 27% by 2035, and 33% by 20503. These are also known as “Pavley I” and “Pavley II” regulations.

California Building Code Title 24. California’s building efficiency standards are updated regularly to incorporate new energy efficiency technologies. The code was most recently updated in 2013 and went into effect for new development in 2014. For projects implemented after January 1, 2014, the California Energy Commission estimates that the 2013 Title 24 energy efficiency standards will reduce consumption by an estimated 25% for residential buildings and 30% for commercial buildings, relative to the 2008 standards. These percentage savings relate to heating, cooling, lighting, and water heating only; therefore, these percentage savings were applied to the estimated percentage of energy use by Title 24.

Renewable Portfolio Standard. The Renewable Portfolio Standard (RPS) requires energy providers to derive 33% of their electricity from qualified renewable sources. This is anticipated to lower emission factors (i.e., fewer GHG emissions per kilowatt-hour used) statewide. Therefore, reductions from RPS are taken for energy embedded in water, which uses energy sources throughout the state to move from the water source area to the City. However, no credit was taken for this measure for the SCE service region (i.e., for residential and commercial electricity used in the City supplied by SCE). Analysis of SCE’s current portfolio and the sources needed to replace the nuclear generation that has been taken out of service has revealed great uncertainty in how SCE’s emission factors may change over time. Therefore, the emission factor used in the 2012 inventory and the BAU forecast was also used in the Adjusted BAU forecast.

Senate Bill X7-7. California’s SB X7-7 requires water suppliers to reduce urban per capita water consumption 20% from a baseline level by 2020. The City is supplied by California Water Service and the reductions in GHG emissions from SB X7-7 were calculated by applying the reduction goals established by California Water Service to the City’s population in 2020 and 2035.

Community Adjusted Business-as-Usual Forecast
 Emissions are expected to decrease under the Adjusted BAU forecast and will be 19% lower in 2020 than 2005 and 31% lower than 2005 levels by 2035.

The City’s Adjusted BAU emissions in 2020 are estimated to be 111,690 MT CO2e in 2020 and 94,162 MT CO2e in 2035 (Table 15). This change represents an 18.6% reduction from 2005 by 2020 and 31% reduction by 2035. Due to the stringent State vehicle standards, the emissions from the Transportation sector are expected to decrease significantly over time, while the proportion of emissions from Residential and Non-residential Energy will increase. Emissions from Solid Waste are expected to increase while emissions from Water and Wastewater will remain steady over time, but all account for less than 10% of total emissions.

3 CARB Advanced Clean Cars Summary Sheet
321
Inventory Forecasts 21
Table 15. Community Adjusted BAU Emissions
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
2020 % of
Total
2035
(MT CO2e)
2035 % of
Total
Transportation &
Mobile Sources 74,455 68,980 53,857 49% 35,533 38%
Non-Residential Energy 20,280 17,830 18,742 17% 19,564 21% Residential Energy 32,293 33,808 33,953 30% 33,953 36%
Solid Waste 6,015 3,334 3,391 3% 3,454 4%
Water & Wastewater 4,117 2,659 1,747 2% 1,658 2%
Total 137,160 126,611 111,690 100% 94,162 100%
% Change from 2005 -8% -19% -31%
Municipal Adjusted Business-as-Usual Forecast
 Emissions are expected to increase under the Adjusted BAU forecast and are estimated to be 17% higher in 2020 and 25% higher in 2035 relative to 2005 levels.  The City will need to reduce emissions by 475 MT CO2e in 2020 from the forecasted level to meet a state-aligned target of 15% below 2005 levels.

The City’s Municipal Adjusted BAU emissions in 2020 are estimated to be 1,751 MT CO2e, which is 17% above the 2005 baseline level (Table 16). By 2035, the level of reductions is anticipated to be 25% above 2005 levels, or 1,872 MT CO2e. The Adjusted BAU emissions are slightly lower than the BAU emissions due to the Low Carbon Fuel Standard measure described earlier. The Low Carbon Fuel Standard would lower the carbon intensity of fuels used in both the City’s Vehicle Fleet and Employee Commute sectors.

Table 16. Municipal Adjusted BAU Emissions
Sector 2005
(MT CO2e)
2012
(MT CO2e)
2020
(MT CO2e)
2020 % of
Total
2035
(MT CO2e)
2035 % of
Total
Buildings & Facilities 301 305 400 23% 428 23%
Employee Commute 348 218 266 15% 284 15%
Solid Waste 215 162 213 12% 227 12%
Outdoor Lighting 405 359 471 27% 504 27%
Vehicle Fleet 227 328 400 23% 428 23%
Water Pumping & Irrigation 5 0.64 0.64 <1% 0.64 <1%
Total 1,501 1,373 1,751 100% 1,872 100%
% Change from 2005 -9% 17% 25%
322
22 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Reduction Targets
The State has set goals for reducing GHG emissions by 2020 and 2050 through AB 32 and Executive Order (EO) S-3-05, respectively. The State has also provided guidance to local jurisdictions as “essential partners” in achieving the State’s goals by identifying a 2020 recommended reduction goal. That goal, stated in the AB 32 Scoping Plan, was for local governments to achieve a 15% reduction below 2005 levels by 2020, which aligns with the State’s goal of not exceeding 1990 emissions levels by 20204. The State’s long term target is to emit no more than 20% of 1990 levels by 2050 (or, a reduction of 80% below 1990 levels by 2050). The State has not provided an interim target, nor has it provided guidance to local governments beyond the 2020 emissions target recommendations. It is however clear that the issue of climate change will not end in 2020 and continued reductions should be achieved to keep the State on a path toward the 2050 goal. A straight-line projection from the 2020 to 2050 goals would result in a reduction goal of 49% below 2005 levels by 2035 midpoint.

Ultimately, the City will determine the level of reductions that it can and should achieve. The recommended targets provided below are guidance based on consistency with the State’s goals.

Recommended Community Targets
In 2020, the City will meet the reduction target through existing efforts. In 2035, the City would need to reduce 24,210 MT CO2e emissions below the Adjusted BAU scenario to meet the State-aligned target (Table 17 and Figure 7).

Table 17. State-Aligned GHG Reduction Targets
Sector 2005 2012 2020 2035
BAU Emissions (MT CO2e) 137,160 126,611 125,982 129,157 Adjusted BAU Emissions (MT CO2e) 137,160 126,611 111,690 94,162 State-Aligned Target(% change from 2005) -15% -49%
State-Aligned Target (% change from 2012) -8% -45%
State-Aligned Emissions Goal (MT CO2e) 116,586 69,952
Reductions from Adjusted BAU needed to meet the
Target (MT CO2e) Target Met 24,210

4 In an analysis, the State concluded that a 15% reduction in emissions from 2005 levels by 2020 would be equivalent to achieving 1990 emissions levels.
323
Reduction Targets 23
Municipal Targets
In 2010, the Hermosa Beach City Council declared its goal to become carbon neutral. The City is hoping to achieve this goal by 2020. Without this goal, the City’s emissions are anticipated to be 1,751 MT CO2e in 2020 and 1,872 MT CO2e in 2035. Therefore, the City must reduce emissions by 1,751 from the Adjusted BAU forecast to meet the 2020 goal and maintain this level in the future (Table 18 and Figure 8).

Table 18. State-Aligned Municipal GHG Reduction Targets 2005 2012 2020 2035
BAU Emissions (MT CO2e) 1,501 1,372 1,801 1,926
Adjusted BAU Emissions (MT CO2e) 1,501 1,372 1,751 1,872 Carbon Neutrality Target (% Reduction from 2005) -100% -100% Carbon Neutrality Emissions (MT CO2e) 0 0
Reductions from Adjusted BAU needed to meet the Target
(MT CO2e) 1,751 1,872
-
20,000
40,000
60,000
80,000
100,000
120,000
140,000
2005 2010 2015 2020 2025 2030 2035
MT CO2e
Water & Wastewater
Solid Waste
Commercial Energy
Residential Energy
Transportation & Mobile
Sources
15% below 2005
49% below 2005
Path to 2035 from 2020 ABAU
(-3.1%/yr)
Figure 7. Community Emissions Inventories, Projections, and Targets 324
24 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Figure 8. Municipal Emissions Inventories, Projections, and Targets 0 200
400
600
800
1,000
1,200
1,400
1,600
1,800
2,000
2005 2010 2015 2020 2025 2030 2035
MT CO2e
Water Pumping &
Irrigation
Solid Waste
Buildings & Facilities
Outdoor Lighting
Employee Commute
Vehicle Fleet
Path to 2020 from 2012
325
Conclusions and Next Steps 25
Conclusions and Next Steps
This Report presents the City’s community and municipal inventories, forecasts, and recommended reduction targets. It is the foundation of the EECAP and provides the City a first look at what will be needed to meet emissions reductions that are aligned with the State and to mitigate the City’s impacts on climate change. This Report also helps to guide the City in determining feasible energy efficiency reduction opportunities by detailing energy-related emissions, including electricity and natural gas from Residential and Non-residential sectors.

The next steps in the EECAP process are to review the information provided in this Report and to determine preliminary GHG reduction targets for the community and municipal operations. The South Bay Cities Council of Governments will also begin to work with the City to identify local and subregional energy efficiency measures that could be implemented to reach the City’s emissions targets. 326
26 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach References
Association of Environmental Professionals. 2013. The California Supplement to the United States Community-Wide Greenhouse Gas (GHG) Emissions Protocol.

California Air Resources Board. 2010. Local Government Operations Protocol For the quantification and reporting of greenhouse gas emissions inventories version 1.1.

California Air Resources Board. 2011. California Greenhouse Gas Emissions Inventory: 2000-2009.

ICLEI 2012. U.S. Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions version

1.0. Intergovernmental Panel on Climate Change. (IPCC) 1996. Revised 1996 IPCC Guidelines for National Greenhouse Gas Inventories.

Intergovernmental Panel on Climate Change. 2007. Climate Change 2007: The Physical Science Basis.

Contribution of Working Group I to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change. Solomon, S., D. Qin, M. Manning, Z. Chen, M. Marquis, K.B. Averyt, M.Tignor and H.L.

Miller (eds.). Cambridge University Press, Cambridge, United Kingdom and New York, NY, USA. 327
Appendix A: Glossary of Terms
Adjusted Business-as-Usual: A GHG forecast scenario that accounts for known policies and regulations that will affect future emissions. Generally, these are state and federal initiatives that will reduce emissions from the business-as-usual scenario.

Baseline Year: The inventory year used for setting targets and comparing future inventories against.

Business-as-Usual (BAU): A GHG forecast scenario used for the estimation of greenhouse gas emissions at a future date based on current technologies and regulatory requirements and in the absence of other reduction strategies.

Carbon Dioxide Equivalent (CO2e): This is a common unit for normalizing greenhouse gases with different levels of heat trapping potential. For carbon dioxide itself, emissions in tons of CO2 and tons of CO2e are the same, whereas one ton of nitrous oxide emissions equates to 298 tons of CO2e and one ton of methane equates to 25 tons of CO2e. The values are based on the gases’ global warming potentials.

Community Inventory: GHG emissions that result from the activities by residents and businesses in the city. An inventory reports emissions that occur over a single calendar year.

Emissions Factor: A coefficient used to convert activity data into greenhouse gas emissions. The factor is a measure of the greenhouse gas intensity of an activity, such as the amount of CO2 in one kilowatt-hour of electricity.

Global Warming Potential (GWP): The relative effectiveness of a molecule of a greenhouse gas at trapping heat compared with one molecule of CO2.

Metric Ton (MT): Common international measurement for the quantity of greenhouse gas emissions. A metric ton is equal to 2205 lbs. or 1.1 short tons.

Municipal Inventory: GHG emissions that result from the activities performed as part of the government operations in the city and are a subset of the community inventory. An inventory reports emissions that occur over a single calendar year.

Reduction targets: GHG emissions levels not to be exceeded by a specific date. Reduction targets are often informed by state recommendations and different targets may be established for different years.

Sector: A subset of the emissions inventory classified by a logical grouping such as economic or municipal-specific category.
328
329
Appendix B: Methodology
This appendix provides a detailed description of the data sources, emission factors, policies, and assumptions used to develop the greenhouse gas (GHG) emissions inventories, forecasts under a business-as-usual (BAU) scenario, forecasts under an Adjusted BAU scenario, and the recommended GHG reduction targets.

Protocols
The GHG inventories for 2005, 2007, 2010, and 2012 were calculated using tools and guidance documents developed or supported by government agencies. Calculation protocols have been developed to ensure consistency among community and municipal inventories. Specifically, the U.S.

Community Protocol for Accounting and Reporting of Greenhouse Gas Emissions (Community Protocol) (ICLEI 2012) and the California Supplement (AEP 2013) were used for the community inventories and the Local Government Operations Protocol (LGOP) was used for the municipal inventories (CARB 2010).

These protocols often have multiple calculation methods for a single emission source depending on the data available. There are two broad approaches for calculating emissions: “bottom-up” and “top-down”.

A bottom-up approach relies on end-use data, such as the city-level electricity usage. A top-down approach relies on aggregated data that is allocated to the city based on population, employment, or other relevant indicator. Bottom-up calculations were performed whenever possible to provide the most detailed and likely accurate picture of emissions within a jurisdiction; however, when detailed data were not available, other appropriate methods were used and are described in this appendix. Data were also calculated and managed to best fit the GHG inventory and planning software tool used for this project, called ClearPath. ClearPath was developed by the Statewide Energy Efficiency Collaborative (SEEC) which is a partnership between several statewide agencies, utilities, and non-profits to assist cities and counties in climate mitigation planning. ClearPath is further described at californiaseec.org. In addition, a South Bay Cities Council of Governments (SBCCOG) User’s Guide is being developed as part of this project to help cities and SBCCOG to maintain the data and provide for consistent reporting of emissions over time.

Global Warming Potential Factors
The inventories include the three GHGs most relevant to community and municipal emissions: CO2, CH4, and N2O. Each GHG differs in its ability to absorb heat in the atmosphere based on their molecular properties and expected lifetime in the atmosphere, and it is useful to describe emissions in one unit of measurement. That unit of measurement is a CO2-equivalent, or CO2e and Global Warming Potential (GWP) factors are used to standardize emissions from various GHGs. GWP factors, developed by the Intergovernmental Panel on Climate Change (IPCC), represent the heat-trapping ability of each GHG relative to that of CO2. For example, the GWP factor of CH4 is 25 because one metric ton (MT) of CH4 has 25 times the heat-trapping capacity as one MT CO2 (over a 100-year period). IPCC periodically updates the GWP factors of GHGs based on new science and updated background mixing ratios of CO2. CO2 always has a GWP factor of 1 and the other GHGs are calculated relative to CO2. The California Air Resources Board (CARB) recently updated their GWP factors to align with the IPCC’s Fourth Assessment Report, as shown in Table B-1. GWP factors are unitless. Emissions in the inventories are reported in units of CO2e.
330
B-2 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-1. Global Warming Potentials
CO2 CH4 N2O
GWP 1 25 298
Source: IPCC Fourth Assessment Report, 2007.

Activity Data
Activity data is the end-use consumption amount of a sector, such as kilowatt hours of electricity, therms of natural gas, and vehicle miles traveled for on-road transportation. In estimating the City’s historic GHG emissions, activity data at the City level were obtained when possible (a “bottom-up” approach). When not available, other data sources were used, generally at the county level (a “topdown” approach). Municipal data for 2005 and 2007 were obtained from the City’s previous inventory report. Other data were provided by the sources as identified Table B-12.

TableB-12. Activity Data Sources
Data Data Source Notes
Community Electricity Southern California Edison
Municipal Electricity Southern California Edison Maintained by SBCCOG Community Natural Gas Southern California Gas Company
Municipal Natural Gas Southern California Gas Company
Community Water California Water Service
Vehicle Miles Traveled Southern California Association of Governments (SCAG)
Origin-destination approach,
described below
Demographic Data SCAG
Vehicle Fleet City
Employee Commute City
Off-Road Emissions OFFROAD Model County-level data
Waste CalRecycle
Origin-Destination VMT
For the community inventory, activity data (vehicle miles traveled) were based on an origin-destination approach used by the State in developing emissions target for metropolitan planning organizations under SB 375. This approach has also been the typical approach used in estimating emission within a city. This approach accounts for:
 Half of the emissions where one endpoint is in the City, for example either the origin or destination of the trip.
 All of the emissions where the trip begins and ends within the City.  None of the emissions that are “pass-through”; that is, a trip passes through the City but does not begin or end within its boundary.

This approach is used to account for trips or portions of trips that the city may have some control over. 331
Appendix B: Methodology B-3
Community Activity Data
Community activity data are shown in Table B-13, except for off-road emissions, which are shown in Table B-14 for Los Angeles County.

Table B-13. Activity Data used in 2005, 2007, 2010, and 2012 Community Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
On-road Transportation
Total Vehicle Miles Traveled 140,684,101 138,727,165 139,197,605 138,350,955 -1.7% Residential Energy
Electricity (kWh) 47,843,215 49,976,195 49,906,427 49,778,450 4.0% Natural Gas (therms) 3,339,783 3,305,637 3,448,010 3,364,392 0.7% Commercial Energy
Electricity (kWh) 51,741,467 52,130,513 48,545,739 41,191,832 -20.4% Natural Gas (therms) 857,687 900,024 827,116 875,986 2.1% Solid Waste
Landfilled (tons) 24,578 18,490 14,230 13,511 -45.0%
ADC (tons) 1246 180 50 48 -80.7%
Water and Wastewater
Water (MG) 760.2 760.2 687.7 700.3 -7.9%
Recycled Water (MG) 30.9 30.9 26.4 27.7 -10.3%
Wastewater (City portion of
countywide residents) 0.20% 0.20% 0.20% 0.20% 0.5%
Off-road sources2(% of LA County emissions attributed to the City) Lawn & Garden (% Households) 0.30% 0.29% 0.29% 0.29% -1.7% Construction (% Building
permits) 0.32% 0.20% 0.13% 0.24% -25.7%
Industrial (% Manufacturing
jobs) 0.03% 0.03% 0.03% 0.03% 4.3%
Light Commercial (% Other jobs) 0.17% 0.17% 0.17% 0.18% 5.9% Recreation (Population weighted
by income) 0.36% 0.36% 0.35% 0.34% -6.3%
Agriculture (% Ag. Jobs) 0.10% 0.11% 0.06% 0.08% -17.6% 332
B-4 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-14. Emissions from Off-road Categories for Los Angeles County Off-road Class GHG
Type
2005
(MT CO2e /yr)
2007
(MT CO2e /yr)
2010
(MT CO2e /yr)
2012
(MT CO2e /yr)
Agricultural Equipment
CO2 921.79 910.27 893.24 882.09
CH4 0.19 0.17 0.14 0.12
N2O 0.01 0.01 0.01 0.01
Construction and Mining
Equipment
CO2 268,646.23 277,541.76 290,911.26 299,875.79
CH4 34.12 31.44 28.24 26.28
N2O 0.22 0.24 0.25 0.26
Industrial Equipment
CO2 8,099.90 8,562.29 9,255.58 9,870.65
CH4 7.16 6.2 4.46 3.89
N2O 0.69 0.63 0.56 0.55
Lawn and Garden Equipment
CO2 2,581.13 2,737.30 2,968.71 3,215.02
CH4 4.98 4.87 4.76 4.96
N2O 2.01 2.01 2.01 2.13
Light Commercial Equipment
CO2 5,300.36 5,572.36 5,979.92 6,387.77
CH4 2.83 2.54 2.18 2.05
N2O 0.91 0.97 1.02 1.07
Recreational Equipment
CO2 286.54 309.8 343.68 369.04
CH4 2.14 2.32 2.58 2.77
N2O 0.52 0.57 0.64 0.68
Municipal Activity Data
Municipal activity data are shown in Table B-15.

Employee Commute
Data for Employee Commute in ClearPath are entered as gasoline or diesel. Annual vehicle miles traveled is entered as is the percent of miles traveled by passenger cars, light trucks, and heavy trucks.

The City conducted a ridership survey in 2013 through SurveyMonkey.com and presented the results in a 2014 report titled “The City of Hermosa Beach Employee Commute Survey: 2013 & Greenhouse Gas Emissions Reduction Strategies”. 108 employees completed the survey, representing 76% of employees.

The results were summarized and extrapolated to the total number of City employees in 2010 and 2012.

Employee commute vehicle miles traveled by fuel type for 2005 and 2007 were taken from the City’s previous GHG inventories. The number of employees for 2010 was assumed to be the same as in 2012. 333
Appendix B: Methodology B-5
Table B-15. Activity Data used in 2005, 2007, 2010, and 2012 Municipal Inventories Sector 2005 2007 2010 2012 % Change
2005 to 2012
Buildings & Facilities
Electricity (kWh) 895,746 932,207 883,858 915,327 2%
Natural Gas (therms)15,383 11,977 4,621 2,542 -53%
Outdoor Lights
City-Owned Electricity (kWh) 868,589 895,841 643,360 664,636 -23% SCE-Owned Electricity (kWh) 464,752 466,608 424,794 455,210 -2% Fleet & Equipment
City-Owned Fleet
Gasoline (gallons) 12,665 17,406 20,481 20,341 61%
Diesel (gallons) 2,584 2,584 4,121 5,502 113%
LPG (gallons) - - 36 23 NA
CNG (standard cubic feet) 13,377 13,377 81,114 98,658 638% Contracted2
Gasoline (gallons) 3,640 3,640 3,640 3,640 0%
Diesel (gallons) 2,057 2,057 2,057 2,057 0%
LPG (gallons) 5,127 5,127 5,127 5,127 0%
Employee Commute
Gasoline (gallons) 794,170 760,056 634,526 506,797 -36% Diesel (gallons) 26,784 35,852 25,110 20,055 -25%
# Full Time Employee Equivalents 186 184 154 123 -34%
Solid Waste2
Generated Waste (tons) 666 660 660 660 -1%
Water Pumping & Irrigation
Electricity (kWh) 17,033 1,712 1,907 1,999 -88%
1 Contracted fuel use was not available for 2010 and 2012. Data from 2007 were used. 2 Solid Waste data for 2010 and 2012 assumed 2007 values.

Emission Factors
Emissions factors are used to convert activity data to GHG emissions. An emission factor is defined as the average emission rate of a given GHG for a given source, relative to units of activity. By definition, an emission factor is related to activity data. The emission factors used in the inventories are described by sector below.
334
B-6 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Electricity
California utilities report the average CO2 content per output of electricity on an intermittent basis. The CO2-intensity of electricity varies by utility and year, due to changes in supply, renewable generation, and other factors. The community and municipal operations use electricity provided by SCE except for embedded energy in water, which travels throughout the state and therefore utilizes electricity from multiple utilities (and are shown under the Water Sector).

Southern California Edison
SCE reported CO2 factors for 2005 and 2007 through the Climate Registry, and a CO2e factor for 2012 in their 2012 Corporate Responsibility & Sustainability Report. When an emission factor is unknown for a certain year, it is standard to use the most recently-reported historic factor until (and if) there is an updated factor. There is no published SCE emission factor for 2010; therefore the factor for 2007 was used for SCE electricity-related emissions calculations in 2010 (Table B-2).

Table B-2. Southern California Edison Electricity Emission Factors Year CO2 CH4 N2O Proxy Year Data Source
2005 665.72 0.03 0.011 NA
CO2: Climate Registry.

CH4 and N2O: U.S. Community Protocol
2007 630.89 0.029 0.010 NA
CO2: Climate Registry.

CH4 and N2O: U.S. Community Protocol
2010 630.89 0.029 0.010 2007
CO2: Climate Registry.

CH4 and N2O: U.S. Community Protocol
2012 7051NA NA NA 2012 Corporate Responsibility &
Sustainability Report
NA: Not Applicable.
1 The 2012 factor was reported as CO2e; therefore, there are no CH4 and N2O factors.

Natural Gas Combustion
Emission factors for natural gas do not vary greatly over time or by supplier. Therefore, emission factors are U.S. averages as listed in the Community Protocol and are applied for all years (TableB-4).

Table B-4. Natural Gas Emission Factors
CO2 CH4 N2O Data Source
kg /MMBtu 53.02 0.005 0.0001 U.S. Community Protocol
Transportation and Mobile Sources
EMFAC Model
CO2 emission factors for transportation and mobile sources are calculated using the State-developed Emissions Factor (EMFAC) model, which can be downloaded at http://www.arb.ca.gov/emfac/.

Emissions are available at the county level and emission factors were developed and applied to vehicle miles traveled specific to each inventory year. Data are aggregated as annual emissions for all vehicle 335
Appendix B: Methodology B-7
model years and speeds, but separated by vehicle category. Vehicle categories include light-duty autos, light-duty trucks, medium-duty vehicles, heavy-duty trucks, and motorcycles.1These categorizations are used to develop an emissions factor for gasoline and diesel vehicles. Emission factors were developed using total CO2 exhaust, which includes emissions from vehicles in motion, idling, and ignition. While emissions from idling and ignitions are not directly related to mileage, they were included so that reductions from measures that may decrease idling could be accounted for in future inventories.

On-Road Transportation
Emissions were converted to emission factors as grams of CO2 per mile for gasoline and diesel vehicle using EMFAC and a 3-step process (for each inventory year):

1. Calculate the vehicle-class average fuel efficiency (miles/gallon) using EMFAC vehicle miles traveled and gallons of fuel consumed for Los Angeles County;

2. Calculate the vehicle-class average CO2 emission factor using EMFAC CO2 emissions2and gallons of fuel consumed for Los Angeles County;

3. Calculate the average grams CO2/mile traveled factor weighted by vehicle class miles traveled for Los Angeles County.

EMFAC does not provide emissions for CH4 and N2O; therefore, factors from the Community Protocol were used (Table B-5).

Table B-5. Fleet-Average Emission Factors
Gasoline On Road Average Factor
(grams/mile)
Diesel On Road Average Factor
(grams/mile)
CO2 CH4 N2O CO2 CH4 N2O
2005 466.062 0.030 0.034 1329.797 0.001 0.001
2007 464.019 0.028 0.029 1331.634 0.001 0.001
2010 458.638 0.028 0.029 1280.045 0.001 0.001
2012 442.657 0.028 0.029 1302.653 0.001 0.001
Employee Commute
Emissions from employee commute in the municipal operations are calculated using annual vehicle miles traveled for gasoline and diesel. CO2 emissions are estimated using a default emission factor of

8.78 and 10.21 kg/gallon for gasoline and diesel, respectively3and fuel economy, which is based on EMFAC outputs for each inventory year and vehicle class. Vehicle miles traveled are converted to CH4

1 Vehicle categories may use either EMFAC2007 or EMFAC2011 categorizations and result in the same data for the purposes of these inventories; EMFAC2007 categories were used here EMFAC2011 further disaggregates medium heavy-duty vehicles and heavy heavy-duty vehicles into 29 vehicle categories. This level of detail is not needed for these inventories. More information on vehicle categories is available at http://www.arb.ca.gov/msei/vehiclecategories.xlsx. 2 For 2010 and 2012, the emissions accounting for the effects of existing policies (Pavley and Low Carbon Fuel Standard) were used. These standards did not exist in 2005 and 2007. 3 Information from ClearPath developers e-mail dated June 19, 2014. 336
B-8 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach and N2O emissions using emission factors from the Community Protocol. Table B-6 shows the miles per gallon and grams (CH4 and N2O) per mile used to estimate emissions from employee commute by vehicle class.

Vehicle Fleet
Vehicle fleet consists of City-owned and contracted vehicles used to perform City services. Vehicle Fleet requires input of gallons of fuel used by fuel type to estimate CO2 emissions. Vehicle miles traveled are used to estimate CH4 and N2O. The factors used for the City are shown in Table B-6.

Table B-6. Employee Commute and Vehicle Fleet Emission Factors 2005 2007 2010 2012
Gasoline
Passenger Vehicle
MPG 21.700 21.875 22.027 22.064
g CH4/mi 0.030 0.028 0.028 0.028
g N2O/mi 0.034 0.029 0.029 0.029
Light Truck
MPG 16.575 16.666 16.795 16.823
g CH4/mi 0.035 0.031 0.031 0.031
g N2O/mi 0.049 0.043 0.043 0.043
Heavy Truck
MPG 12.754 12.806 12.854 12.856
g CH4/mi 0.033 0.033 0.033 0.033
g N2O/mi 0.013 0.013 0.013 0.013
Diesel
Passenger Vehicle
MPG 27.558 27.662 29.006 29.889
g CH4/mi 0.001 0.001 0.001 0.001
g N2O/mi 0.001 0.001 0.001 0.001
Light Truck
MPG 27.032 27.251 27.705 28.498
g CH4/mi 0.001 0.001 0.001 0.001
g N2O/mi 0.001 0.001 0.001 0.001
Heavy Truck
MPG 17.343 17.588 18.797 18.858
g CH4/mi 0.005 0.005 0.005 0.005
g N2O/mi 0.005 0.005 0.005 0.005
Note: MPG is miles per gallon and is derived from EMFAC at the county level. CH4 and N2O emission factors are from the Community Protocol; Passenger Vehicle and Light Truck emission factors have data for 2005 and later; Heavy Truck only have 2010 data.

Off-Road
Off-road emissions include emissions from agriculture, construction, industrial, lawn and garden, light commercial, and recreational equipment. Annual emissions of CO2, CH4, and N2O are available at the county level from the State’s OFFROAD model. To estimate values for each city, relevant indicator data are used to estimate the proportion of county-level emissions attributable to the city. Table B-7 lists the 337
Appendix B: Methodology B-9
indicator used to estimate the City’s portion of emissions for each category and Table B-8 shows Cityspecific data. City- and county-level indicator data were obtained from SCAG.

Table B-7. Off-road Emissions Indicators
Category Indicator
Agriculture Equipment Agriculture Jobs
Construction Equipment Building Permits Issued
Industrial Equipment Manufacturing Jobs
Lawn and Garden Equipment Households
Light Commercial Equipment Non- Manufacturing or Agriculture Jobs Recreational Equipment Population, Weighted by Median Income Table B-8. Off-road Emissions Indicator Data
Ag. Jobs Building
Permits
Mfg.

Jobs Households Other Jobs1 Population Income ($)
2005
City 3.786 1 136 2,884 3,646 8,058 123,702
County 13,562 25,623 461,099 3,178,736 4,045,922 9,816,200 48,606 % 0.03% 0.00% 0.03% 0.09% 0.09% 0.21%
2007
City 4.002 59 144 2,902 3,854 7,939 130,825
County 13,562 20,303 461,099 3,224,053 4,045,922 9,780,800 51,439 % 0.03% 0.29% 0.03% 0.09% 0.10% 0.21%
2010
City 3.69 2 114 3,100 3,572 8,064 142,286
County 10,598 7,466 362,157 3,454,093 3,758,244 9,818,605 56,000 % 0.03% 0.03% 0.03% 0.09% 0.10% 0.21%
2012
City 3 3 116 3,100 3,660 8,097 117,305
County 10,798 18,926 369,005 3,454,093 3,829,313 9,889,632 53,880 % 0.03% 0.02% 0.03% 0.09% 0.10% 0.18%
Note: Some percentages may appear off due to rounding. Ag. = Agriculture. Mfg. = Manufacturing. 1 Other indicates non-manufacturing and non-agricultural.

Water
Emissions from water are indirect. Water requires energy to move from its source to final treatment and the energy for most of these processes is not captured in local utility data (i.e., the portion that is used in a home or business and therefore contained in the owner’s utility bill). This portion is termed the “embedded energy” in water and particularly for southern California, the energy embedded in water is high and should be accounted for in a community inventory. The California Energy Commission (CEC) developed a report, titled Refining Estimates for Water-Related Energy Use in California, which estimates the energy required to supply, convey, distribute, and treat water in northern and southern California. Recycled water is less energy-intensive because it does not require the supply and conveyance energy. Outdoor water infiltrates into the ground and therefore does not have the 338
B-10 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach wastewater energy treatment component. Therefore, the emission factors are adjusted to account for the proportion of recycled and outdoor water. The amount of water used for indoor or outdoor use was not available at the City level; however, the 2010 Los Angeles Department of Water & Power, Urban Water Management Plan states that 61% of water is for indoor use for the City of Los Angeles. The water usage is assumed to be similar for the South Bay sub-region. Therefore, the embedded energy in a million gallon (MG) of water in the City is estimated in Table B-9 using the CEC report and estimated indoor vs. outdoor water usage in the region.

Table B-9. Energy Embedded in Water
Conventional1(kWh/MG) Recycled (kWh/MG)
Supply and Convey 9,727 --
Treatment 111 111
Distribution 1,272 1,272
Wastewater Treatment 1,911 1,911
Total 13,022 3,294
South Bay Factor 12,275.71 2,548.71
1 From CEC’s 2006 Refining Estimates for Water-Related Energy Use in California, for Indoor water use in southern California.

Statewide Average Electricity
For energy embedded in water, a statewide average emission factor is applied because water in the South Bay sub-region is supplied from various regions in the State (Table B-3). Similar to SCE data, statewide emission factors are not available for each inventory year. For 2010 and 2012, the 2009 statewide emission factors were used as the proxy year.

Table B-3. California Statewide Electricity Emission Factors Year CO2 CH4 N2O Proxy Year Data Source
2005 948.28 0.03 0.011 NA U.S. Community Protocol
2007 919.64 0.029 0.010 NA U.S. Community Protocol
2010 658.68 0.029 0.006 2009 U.S. Community Protocol
2012 658.68 0.029 0.006 2009 U.S. Community Protocol
NA: Not Applicable.

Wastewater
The emissions for wastewater include the CH4 and N2O emissions from processing which consist of three sources: stationary, process, and fugitive emissions.

Stationary emissions are derived from combustion of digester gas at a centralized treatment facility. The City is served by the Los Angeles County Sanitation District’s Joint Water Pollution Control Plant (JWPCP). JWPCP is a centralized treatment facility that uses an anaerobic digester process and does not employ a formal nitrification/denitrification (N/DN) system. Detailed information regarding the amount of digester gas produces was not available, so an alternative method using City population information 339
Appendix B: Methodology B-11
was used. Default factors from the Community Protocol were applied to estimate CH4 and N2O emissions for stationary emissions. Although CO2 emissions are also produced, the fuel source is considered a biofuel, and the resulting CO2 emissions are considered “biogenic” and are not reported4.

Process emissions include N2O emissions as a result of N/DN processes at the treatment facility. All wastewater facilities have emissions from N/DN—some facilities have a formal N/DN process, which would result in greater N/DN emissions, but for the JWPCP, N/DN emissions are solely a result of natural processes. The recommended approach to estimating these emissions is through the population served and default factors listed in the Community Protocol. In an advanced, centralized treatment facility, stationary and process emissions are relatively small compared to fugitive emissions. The Community Protocol, and likewise ClearPath, recommends multiplying the population-derived emissions by 1.25 to account for commercial and industrial discharges to the system. Regions without any commercial and industrial sources should use a factor of 1.0. Because the City is largely residential, a factor of 1.0 was applied to these emissions.

Fugitive emissions occur from inflow (septic systems) and effluent discharge. JWPCP reports facilitywide effluent, and effluent nitrogen content, which are factors used in estimating fugitive emissions (Table B-10). The City’s portion was determined by estimating the proportion of the population served by JWPCP. The ClearPath tool requires the daily N load in kg N per day. This is calculated using the factors listed in Table B-9 and the Community Protocol Equation WW.12:

Daily N Load for the City (kg N/day) = Effluent X Effluent Nitrogen Content X gallons/liter X City Population/Service Population,
Where Effluent is the facility-wide discharge in millions of gallons per day (MGD), Effluent Nitrogen Content is the average nitrogen content per volume (mg/L), and gallons/liter is a conversion factor (3.79). The Daily N Load entered into ClearPath was adjusted by a factor of 0.5 to account for the difference in emission factors for direct ocean discharge and stream/river discharge. In ClearPath, ocean discharge is not an option; however, the emissions are estimated to be ½ of those from discharge to a stream or river (see Community Protocol Appendix F). Therefore, the Daily N Load was adjusted by 0.5 to account for this difference.

Table B-10. Los Angeles County Joint Water Pollution Control Plant Data Used in Wastewater Fugitive Emissions
2005 2007 2010 2012
Effluent (MGD) 403a296b237c264d
Effluent Nitrogen content (mg/L) 40a36.7b39.7 e41.1d
a Default assumption based on influent.
b 2008 annual report data.
c 2011 annual report data.
d 2013 annual report data.
e Based on communication with Los Angeles County Sanitation District for 2009.

4 Emissions from digester gas combustion are automatically calculated in ClearPath when population is entered. 340
B-12 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Solid Waste
Emissions from solid waste are primarily in the form of fugitive emissions of methane from decomposition. Emission factors are derived from the Community Protocol, based on the type of waste disposed. The State conducts a Waste Characterization Study (Study) every 4 to 6 years to determine the amount of waste attributable to each waste type. The Study is conducted at the State level by economic sector; therefore, community-level characterizations are not available. For the community inventory, the overall composition of California’s disposed waste stream was used to convert total tons into waste types (Table B-11). For the municipal inventory, the characterization for public administration was used (Table B-11). In addition to community-generated waste, some diverted green waste is used as landfill cover rather than importing landfill cover from other regions. This green waste is known as alternative daily cover (ADC) and is reported by CalRecycle for each community. The ADC characterization was determined through communication with the developers of ClearPath and does not vary by year or community. The emission factor to determine methane generation varies if the landfill operates a methane flare or generates electricity from methane capture. The Community Protocol recommends using an average factor of 75% recovery from landfill gas, although some landfills with have much higher gas recovery systems, and other landfills do not have any. Carbon dioxide generated by decomposition of waste in landfills is not considered anthropogenic because it would be produced through the natural decomposition process regardless of its disposition in the landfill. Nitrous oxide is not a by-product of decomposition and therefore no fugitive emissions of nitrous oxide are anticipated from this source. The waste characterizations and emission factors used to estimate emissions from solid waste are provided in Table B-11. The “Category in in the 2004 and 2008 Studies” detail which Study categories make up the ClearPath Category.

Table B-11. Waste Characterization and Emission Factors for Solid Waste ClearPath
Category
Category in 2004 and
2008 Studies
Alternative
Daily Cover1
2004
Study2
2008
Study3
Public
Administration
Emission
Factor1
Newspaper Newspaper 0% 2.2% 1.3% 5.5% 0.043
Office Paper
White/Colored Ledger Paper
+ Other Office Paper + Other
Miscellaneous Paper
0% 5.4% 4.9% 13% 0.203
Cardboard Uncoated Corrugated
Cardboard + Paper Bags 0% 6.7% 5.2% 5.1% 0.120
Magazine/ Third
Class Mail
Magazines and Catalogs +
Remainder/ Composite Paper 0% 6.5% 5.9% 15.4% 0.049
Food Scraps Food 0% 14.6% 15.5% 9.8% 0.078
Grass Leaves and Grass 30% 2.1% 1.9% 8.05% 0.038
Leaves Leaves and Grass 40% 2.1% 1.9% 8.05% 0.013
Lumber Branches and Stumps +
Prunings and Trimmings 0% 9.6% 14.5% 0.1% 0.062
Branches Lumber 30% 2.6% 3.3% 5% 0.062
1 Breakdown from ClearPath Developers via e-mail dated June 19, 2014. Used for all inventory years. 2 2004 Waste Characterization Study for California, Overall Waste Stream. Used for 2005 inventory. Does not total 100% as not all waste is organic.
3 2008 Waste Characterization Study for California, Overall Waste Stream Used for 2007, 2010, 2012 inventories. Does not total 100% as not all waste is organic.
341
Appendix B: Methodology B-13
Forecasts
The forecasts are an estimate of what emissions in the City may be in 2020 and 2035. The forecasts were developed using standard methodologies under two scenarios: Business-as-Usual (BAU) and Adjusted BAU.

Business-as-Usual Forecasts
The BAU scenario uses current (2012) consumption patterns and predicted growth in the City in the absence of state and federal legislation that would reduce future emissions. The growth assumptions are those estimated by SCAG in their 2012 Regional Transportation Plan and are applied to emissions sectors based on their relevance. For example, future Residential Energy emissions were developed using current energy use per household (from the 2012 inventory) and the anticipated number of households in the future. Table B-16 shows the growth factors used to project emissions in the City.

Adjusted Business-as-Usual Forecasts
The Adjusted BAU scenario also uses growth estimates for the City, also accounts for legislation that will reduce emissions in the future, regardless of City actions. Table B-17 summarizes the legislation that will reduce the City’s emissions in the future and which sectors the legislation applies to.

TableB-16. Emissions Sectors and Demographic Growth Indicators Sector Demographic Indicator
Residential Energy Households
Commercial/ Industrial Energy Jobs
Solid Waste, Water, Wastewater, Aviation, Off-Road Sources Service Population (Population + Jobs) Transportation Vehicle Miles Traveled, modeled by SCAG
Municipal Jobs Municipal Emissions1
SCAG: Southern California Association of Governments
1 The number of jobs in the City is used as an indicator for all municipal operation emissions except Aviation, which is forecast consistent with the community forecast (by change in service population).

Table B-17. Legislation Applied to Adjusted BAU Forecasts Legislation Description Emissions Sector Affected
Low Carbon Fuel
Standard
Reduce carbon intensity of transportation fuels
10% by 2020.

On-road Transportation, Employee
Commute, Vehicle Fleet
AB 1493 and
Advanced Clean Cars
Implement GHG standards for passenger vehicles,
implement zero-emission vehicle program, support
clean fuels outlet regulation.

On-road Transportation
California Building
Code Title 24
Improved energy efficiency standards for new
residential and non-residential construction.

Residential Energy, Non-residential
Energy
Renewable Portfolio
Standard1
Provide 33% of electricity from renewable sources
by 2020. Water
Senate Bill X7-7
Reduce urban per capita water consumption 20%
by 2020. Water
1 Potential GHG reductions from this legislation were not applied to the electricity in SCE’s service territory due to the uncertainty in SCE’s generation sources after the closure of the San Onofre Nuclear Generating Station. 342
B-14 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Low Carbon Fuel Standard, AB 1493, and Advanced Clean Cars Changes in on-road emissions in Los Angeles County were modeled using EMFAC, which models both the emissions with and without Low Carbon Fuel Standard and Pavley I. Additional modeling was conducted to estimate the change in emissions due to Advanced Clean Cars. The rate of reductions from on-road transportation measures through 2020 was assumed to be 0.0344% per year for gasoline and

0.0106% per year for diesel. After 2020, the rate of reductions was assumed to be 0.03452% per year for gasoline and 0.0251% per year for diesel.

California Building Code Title 24
Title 24 updates will raise the minimum energy efficiency standards for new buildings, thereby decreasing the expected energy consumption of future development in the City. Under the adjusted BAU scenario, it was assumed that the 2013 Title 24 standards that went into effect in 2014 will make new residential and non-residential buildings more efficient than they would be under the 2008 Title 24 standards for new residential buildings. The energy savings were estimated using analyses developed by the California Energy Commission and the applied to the expected new development in the City to 2020 and 2035. The rate of reductions was applied to the City’s 2012 energy use (kWh or therms) per household (for Residential energy) or per job (for Commercial energy). Savings were applied to new development anticipated in the City. Detailed energy savings assumptions are below.

Residential
Residential electricity is estimated to be 32.6% lower under the new standards.5This percentage savings is relative to heating, cooling, lighting and water heating only and do not include other appliances, outdoor lighting that is not attached to buildings, plug loads, or other energy uses. Electricity consumption due to heating, cooling, lighting, and water heating accounts for 34% of total household electricity use.6Therefore, the percentage of total residential electricity that will be reduced as a result of the 2013 Title 24 standards is 11.1%.

Residential natural gas savings were estimated 5.8% lower under the new standards. Again, this percentage savings pertains only to the energy sources affected by Title 24 Standards. Natural gas consumption due to space and water heating accounts for 86% of total household natural gas use.7 Therefore, the percentage of total residential natural gas that will be reduced as a result of the 2013 Title 24 standards is 5.0%.

Commercial
Commercial Electricity savings were estimated to be 21.8% lower under the new standards. Title 24- related measures would impact 77.2% of total electricity use in commercial buildings8; therefore, 16.8% reduction in electricity consumption may be expected in new commercial development.

5 CEC Impact Analysis, California’s 2013 Building Energy Efficiency Standards, July 2013. CEC-400-2013-008. 6 CEC 2009 California Residential Appliance Saturation Appliance Study, October 2010. CEC-200-2010-004. 7 CEC 2009 California Residential Appliance Saturation Appliance Study, October 2010. CEC-200-2010-004. 8 CEC 2006. California Commercial End-Use Survey. March 2006. CEC-400-2006-005. 343
Appendix B: Methodology B-15
Natural gas savings were estimated to be 16.8% under the new standards compared to the previous standards. Heating and cooling account for 69.7% of natural gas consumption in commercial facilities; therefore, 11.7% reduction in natural gas consumption may be expected from 2013 Title 24 standards applied to new commercial development.

Renewable Portfolio Standard
The Renewable Portfolio Standard will be fully implemented in 2020. The level of implementation varies by utility; however, ICLEI estimates that the average statewide level of implementation is 5% per year, compounded annually. As noted in the Report, this reduction is only taken for electricity used in the transport and treatment of water, which moves throughout the State. The reduction is not taken for electricity wholly within SCE’s territory.

Senate Bill X7-7
SB X7-7 will be implemented by individual water districts. For the City’s water provider, California Water Service Company, the level of implementation was estimated using an annualized reduction rate from the Company’s baseline water consumption rate (141 gallons per capita per day, GPCD) to the target water consumption rate (126 GPCD).

Target Setting
The state-aligned targets are provided to assist the City in determining appropriate emission reduction goals. Recommended targets are based on existing California climate change legislation and State guidance relevant to establishing a GHG reduction target. While State goals are based on a 1990 baseline year, the City’s baseline year is 2005. Therefore, the reduction targets are expressed as a percent reduction below 2005 levels. Targets are recommended for 2020 to align with AB 32 and 2035, which is a midpoint between the 2020 goal and the State’s long-term 2050 goal. Planning beyond 2035 is considered speculative, as legislation and technology may change significantly before 2050. While it is important for continued reductions well beyond 2035, no local targets are recommended at this time.

Table B-18 provides a summary of the State’s goals and the State’s guidance to local governments regarding GHG reduction targets. This guidance applies to and communitywide emissions reductions efforts. The City has adopted a carbon neutrality goal for municipal operations by 2020.

Table B-18. Summary of State Reduction Targets and Guidance on Local Government Targets Aligned with State Targets
2020 Interim Year Between
2020-2050 2050
State Targets
(AB 32 and EO S-3-05) 1990 levels NA 80% below 1990 levels State Guidance on Local Government
Targets (AB 32) Scoping Plan
Recommended Target and Attorney
General’s Office Guidance
15% below
2005-2008 levels
Demonstrate a trajectory
toward statewide 2050 levels
(e.g., 49% below 2005 levels
by 2035)
NA
344
B-16 Inventory, Forecasting, and Target-Setting Report – City of Hermosa Beach Table B-19 demonstrates how the local targets are aligned with State targets.

Table B-19. Comparison of 1990 Baseline Targets vs. 2005 Baseline Targets Target Year Percent below
1990 Emission Levels
Percent below
2005 Emission Levels
2020 0.0% 15.0%
2021 2.7% 17.3%
2022 5.3% 19.5%
2023 8.0% 21.8%
2024 10.7% 24.1%
2025 13.3% 26.3%
2026 16.0% 28.6%
2027 18.7% 30.9%
2028 21.3% 33.1%
2029 24.0% 35.4%
2030 26.7% 37.7%
2031 29.3% 39.9%
2032 32.0% 42.2%
2033 34.7% 44.5%
2034 37.3% 46.7%
2035 40.0% 49.0%
345
2022/23 Rates
Part of CPA’s value proposition is to always have rates that are competitive with SCE.

CPA’s Board sets rates annually, effective July 1, to provide rate stability and predictability. Due to market conditions, multiple SCE rate changes, and annual volatility in the PCIA, or “exit fee,” comparisons can fluctuate over the course of a year.

Energy Product Typical
Residential Bill
Typical Small
Business Bill
Comparison to
SCE base
SCE base rate $172 $251
Lean Power $171 $250 -1%
Clean Power $172 $251 0%
100% Green Power $177 $269 3%
346

MEMORANDUM
To: Clean Power Alliance
City of Hermosa Beach
From: Mary Neal, Mark Fulmer
Subject: Feasibility Assessment of the City of Hermosa Beach Joining the Clean Power Alliance
Date: August 25, 2022
Clean Power Alliance (CPA) is a Community Choice Aggregator (CCA) serving selected communities in the Los Angeles and Ventura Counties, as well as the unincorporated areas of those counties. CPA retained MRW & Associates (MRW) to conduct feasibility studies to evaluate three potential new member cities in 2022. These studies considered the potential 2024 revenues that could be achieved by CPA and the associated costs to CPA of serving the potential new communities.

This study focuses on the potential financial and environmental impact of adding Hermosa Beach into CPA’s system. MRW looked at three different scenarios in which Hermosa Beach customers were placed on each of CPA’s rate products by default: Lean, Clean, or 100% Green.

Using historical Southern California Edison (SCE) data and CPA current and forecasted customer electricity usage data, MRW estimated Hermosa Beach’s customers, electric load, costs, revenues, and greenhouse emissions for these three scenarios.

I. Executive Summary
The general conclusions of this study are as follows:

1. Hermosa Beach’s load is less than 1% of that of CPA. As such, the impact of adding Hermosa Beach on CPA’s finances and emissions would be modest.

2. The analysis performed here suggests that adding Hermosa Beach to CPA in 2024 would reduce CPA’s net revenue by $740,000 to $810,000 in the first year of service depending on the scenario modeled.1 The effect on CPA’s total projected annual revenue for the scenarios varies between negative 0.08% to negative 0.09%. 1 The analysis was limited to 2024. The results in future years may be different. 347
Feasibly Assessment of Hermosa Beach Joining CPA
August 25, 2022 2 MRW & Associates

3. This study uses 2021 historical data and current forward price curves to make decisions about 2024 market conditions. Considering the policy changes occurring at the Public Utilities Commission and the general uncertainty that comes with forecasting, the results of this study could change.

A. Loads and Customers
Electric load is a measure of the amount of energy used by customers. As this is the main service provided by CPA, the electric load plays a major part in both the financial and environmental impact calculations.

Table 1 below shows Hermosa Beach’s estimated total annual electric load and customer accounts compared with CPA’s total annual electric load and customer accounts. The Hermosa Beach values were calculated using a combination of 2021 SCE data and CPA forecast data.

Hermosa Beach’s load and customer base is small compared to CPA, which includes 32 local agencies across the Los Angeles and Ventura Counties.

Table 1. Estimated CCA Customers and Associated Load in 2024 Rate Group
Customers Annual Sales (MWh)
CPA Hermosa Beach CPA Hermosa Beach
Residential 853,400 9,370 5,191,000 47,000
Non-residential 124,300 1,394 5,899,000 28,300
TOTAL 977,700 10,764 11,090,000 75,300
B. Financial Impact
MRW used CPA’s financial model and assumptions to calculate the additional revenues, costs, and the net revenue incurred from adding Hermosa Beach to CPA. These are shown in Table 2.

MRW found that adding Hermosa Beach has a negative effect on the net revenue, which means CPA would not benefit from Hermosa Beach’s inclusion. However, as noted in the previous section, Hermosa Beach is much smaller than CPA, so the net impact will be small. 348
Feasibly Assessment of Hermosa Beach Joining CPA
August 25, 2022 3 MRW & Associates
Table 2: 2024 Forecasted Net Revenue Impact
Lean Scenario Clean Scenario 100% Green
Scenario
Added Revenue $5.80 million $5.96 million $6.42 million Added Revenue Requirement $6.54 million $6.77 million $7.22 million Net Revenue (Cost) ($0.74 million) ($0.81 million) ($0.8 million) % 2024 CPA Revenue Prior to Expansion -0.08% -0.09% -0.09% C. Greenhouse Gases
MRW also estimated greenhouse gas (GHG) emissions for each Scenario and compared them to SCE’s GHG emissions profile. Table 3 below summarizes these results. Hermosa Beach would have lower emissions than SCE for all scenarios. Future emissions will vary depending on changes in the product content for each scenario.

Table 3. 2024 Greenhouse Gas Emissions (CO2e US tons)
Rate Group SCE Default Lean
Scenario
Clean
Scenario
100% Green
Scenario
Residential 13,300 13,000 9,700 0
Non-residential 8,000 7,900 5,800 0
TOTAL 21,300 20,900 15,500 0
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September 7, 2022
Mayor Michael Detoy
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
Dear Mayor Detoy,
On September 1, 2022, the Clean Power Alliance Board of Directors approved Resolution 22-09-039 inviting the City of Hermosa Beach to become a member of CPA’s Joint Powers Authority, with electricity service to customers within the City’s jurisdiction to begin in 2024. We are excited to work with you and City staff over the coming year to implement community choice in Hermosa Beach for the benefit of the City’s residents and businesses.

To move forward, the City needs to adopt an ordinance by November 30, 2022, to implement Community Choice Aggregation within the City’s jurisdiction and approve the CPA Joint Powers Agreement. Our staff has already shared a draft ordinance template with city staff and have reviewed it with your City Attorney. We are available to answer any questions prior to and/or during your Council’s deliberation on the ordinance.

Following the City’s passage of the ordinance, the CPA Board of Directors will conduct a public hearing during its meeting on December 1, 2022, to consider and approve an Implementation Plan Addendum to add Hermosa Beach to the JPA. This is a routine matter. However, the Addendum must be submitted to the California Public Utilities Commission no later than December 31, 2022 for Hermosa Beach customers to be eligible for CPA service starting in 2024, thus the deadline for the City to wrap up the ordinance process by the end of November.

Assuming you move forward, in 2023 your City Council would appoint a member of your City Council to represent the City on CPA’s Board of Directors, along with one or two alternate directors who may be other elected leaders, city staff, or members of the public. Over the course of 2023 and 2024 the CPA team would work with the City to educate the community about the impending change in their default electricity provider and make residents and businesses aware of their new options and the benefits of being a customer of Clean Power Alliance.

Another decision the City Council must make is the choice of a “default rate.” Clean Power Alliance currently has three rates which come with different levels of renewable energy content and at different 350
price points. The default rate is the rate Hermosa Beach customers would be automatically enrolled in at the start of CPA service unless they take an affirmative action to choose a different CPA rate or decide to opt-out of CPA and purchase their electricity from Southern California Edison.

The City Council may choose to select the default rate for the City in conjunction with joining CPA, or it may defer this decision to 2023. CPA does not advocate for one particular default rate over another; however, CPA staff has deep experience with the considerations many cities take into account when choosing a default rate and would be happy to share those experiences with you and the rest of the members of your City Council.

Please don’t hesitate to reach out to me or Karen Schmidt at [email protected] or 805- 798-1629 or if you have any questions or if we can be of assistance as you take the next steps toward joining CPA.

Warmly,
Ted Bardacke
Chief Executive Officer
cc: Suja Lowenthal
Attachment: CPA Board of Directors Resolution 22-09-039 351
RESO NO. 22-09-039
September 1, 2022

RESOLUTION NO. 22-09-039

RESOLUTION OF THE BOARD OF DIRECTORS OF CLEAN

POWER ALLIANCE OF SOUTHERN CALIFORNIA

AUTHORIZING THE OFFER OF MEMBERSHIP TO THE

CITIES OF HERMOSA BEACH, MONROVIA, AND SANTA

PAULA TO JOIN CLEAN POWER ALLIANCE OF
SOUTHERN CALIFORNIA (“CPA”) WITH CPA SERVICE TO

CUSTOMERS IN THOSE JURISDICTIONS TO BEGIN IN
2024

THE BOARD OF DIRECTORS OF CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA HEREBY RESOLVES AS FOLLOWS:

WHEREAS, the cities of Hermosa Beach, Monrovia, and Santa Paula (individually, “City”; collectively, “Cities”) requested to be considered for membership in CPA so that customers in those jurisdictions can begin receiving service from CPA in 2024; WHEREAS, each City contributed $10,000 (“Study Fee”) toward the cost of conducting a feasibility study to assess the potential impacts to existing CPA customers of adding each City to CPA’s service territory;
WHEREAS, in 2019, the CPA Board of Directors (“Board”) identified the following priorities when considering new member agencies for expansion of CPA’s service territory in Los Angeles and Ventura counties: (1) fill geographic holes within CPA’s service territory; (2) seek out load centers where there are synergies with CPA’s environmental and/or programmatic goals; or (3) increase diversity among CPA membership (“New Membership Priorities”);
WHEREAS, each of the Cities meets one or more of the New Membership Priorities;
WHEREAS, benefits to expanding CPA membership to the Cities include (1) extending local control and choice to more customers and communities; (2) expanded use of renewable energy and reduction in greenhouse gas emissions; (3) leveraging outreach and communications across contiguous geographies in CPA territory; and (4) expanding scale economies in CPA’s energy procurement and operations; WHEREAS, the risks and impacts of offering CPA membership to the Cities are small relative to CPA’s size and can be mitigated;

NOW, THEREFORE, BE IT DETERMINED, AFFIRMED, AND ORDERED BY

THE BOARD OF DIRECTORS OF THE CLEAN POWER ALLIANCE OF SOUTHERN CALIFORNIA THAT:

IT IS DETERMINED, AFFIRMED, AND ORDERED that CPA hereby authorizes the offer of CPA membership to each City to join CPA with CPA service to customers to begin in 2024; and,
352
RESO NO. 22-09-039
September 1, 2022

IT IS FURTHER DETERMINED, AFFIRMED, AND ORDERED that the Study Fee shall constitute each City’s pro rata share of CPA’s organizational and planning expenditures.

ADOPTED AND APPROVED this 1st day of September 2022.
____________________________
Julian Gold, Chair
ATTEST:
____________________________
Gabriela Monzon, Secretary
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ORDINANCE NO. 22-____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH APPROVING THE JOINT POWERS AGREEMENT FOR CLEAN

POWER ALLIANCE OF SOUTHERN CALIFORNIA AND AUTHORIZING

THE IMPLEMENTATION OF A COMMUNITY CHOICE

AGGREGATION PROGRAM
The City Council of the City of Hermosa Beach does ordain as follows:

WHEREAS, the City of Hermosa Beach has been actively investigating options to provide electric services to constituents within its service area with the intent of achieving greater local involvement over the provision of electric services and promoting renewable energy at competitive rates;
WHEREAS, on September 24, 2002, the Governor signed into law Assembly Bill 117 (Stat. 2002, Ch. 838; see California Public Utilities Code section 366.2; hereinafter referred to as the “Act"), which authorizes any California city or county, whose governing body so elects, to combine the electricity load of its residents and businesses in a community-wide electricity aggregation program known as Community ChoiceAggregation; WHEREAS, the Act expressly authorizes participation in a Community Choice Aggregation (CCA) program through a joint powers agency;
WHEREAS, through Docket No. R.03-10-003, the California Public Utilities Commission has issued various decisions and rulings addressing the implementation of CCA programs, including a procedure by which the California Public Utilities Commission will review “Implementation Plans," which are required for submittal under the Act as the means of describing the CCA program and assuring compliance with various elements contained in the Act; WHEREAS, the Clean Power Alliance of Southern California (CPA) is a joint powers authority established pursuant to California Government Code section 6500 et seq. and California Public Utilities Code section 366.2(c) and a Joint Powers Agreement (“Joint Powers Agreement"), which purposes include the following:

To form a Joint Powers Authority known as “Clean Power Alliance of Southern California” (formerly known as “Los Angeles Community Choice Energy Authority”); and
To specify the terms and conditions by which participants may participate as a group in energy programs, including the implementation of a CCA program; WHEREAS, an Implementation Plan Addendum will be submitted for review and adoption by the CPA Board of Directors;
WHEREAS, Community Choice Aggregation by and through CPA appears to provide a reasonable opportunity to accomplish all of the following:
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To provide greater levels of local involvement in and collaboration on energy decisions;
To significantly increase the amount of renewable energy available to CPA energy customers;
To provide price stability, long-term electricity cost competitiveness and other benefits for the community; and
To reduce greenhouse gas emissions related to the electricity sector.

WHEREAS, the Act requires CCA program participants to individually adopt an ordinance (“CCA Ordinance") electing to implement a CCA program within its jurisdiction by and through its participation in CPA;
WHEREAS, it is in the public's interest and welfare to establish a CCA program within the City of Hermosa Beach; and
WHEREAS, the Joint Powers Agreement expressly allows the City to vote to withdraw its membership in CPA (and its participation in the CCA program) by providing no less than 180 advance written notice to CPA.

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

SECTION 1. That the recitals set forth above are true and correct and are incorporated as though fully set forth herein.

SECTION 2. Based upon the findings and declarations set forth in this ordinance, and in order to provide businesses and residents within the jurisdictional boundaries of the City with a choice of power providers and with the benefits described in the recitals above, the City Council hereby elects to implement a CCA program within the City's jurisdictional boundaries. Upon approval and execution of the Joint Powers Agreement, the City will implement the CCA program by and through the City's participation in CPA).

SECTION 3. That the City Council hereby approves the Joint Powers Agreement, and directs that the City proceed with the participation in CPA.

SECTION 4. That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

SECTION 5. That this ordinance shall become effective thirty (30) days after its adoption.
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SECTION 6. That the City Council finds that it has the authority to adopt this ordinance, that the ordinance is constitutionally valid and that the ordinance is consistent with the general powers and purposes of the City.

SECTION 7. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption.

PASSED, APPROVED, AND ADOPTED this 27th day of September, 2022.

PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California

ATTEST: APPROVED AS TO FORM:
_________ ___
Myra Maravilla, City Clerk Michael Jenkins, City Attorney 356
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0577
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 11, 2022
RESOLUTION APPROVING THE 2022-2025 MEMORANDUM OF UNDERSTANDING (MOU) BETWEEN THE CITY OF HERMOSA BEACH AND THE HERMOSA BEACH POLICE OFFICERS’

ASSOCIATION
(Human Resources Manager Vanessa Godinez)
Recommended Action:

Staff recommends City Council adopt a Resolution (Attachment 1) approving the Memorandum of Understanding (MOU) (Attachment 2) between the City of Hermosa Beach and the Hermosa Beach Police Officers’ Association for the 2022-2025 fiscal years.

Executive Summary:

Negotiations for a successor to the Memorandum of Understanding (MOU) between the City and the Hermosa Beach Police Officers’ Association (HBPOA) have resulted in a tentative agreement. The City and the Hermosa Beach Police Officers’ Association (HBPOA) met and conferred in accordance with the Meyers-Milias Brown Act and have reached a tentative agreement on the terms and conditions of employment. The terms of the tentative agreements are summarized below. The total cost of the negotiated changes is $333,545 for FY 2022-2023.

Background:

The Meyers-Milias Brown Act requires that local public agencies negotiate with their respective bargaining units regarding wages, hours, and working conditions. Agreements with the City’s bargaining units expired at the end of June and, under direction from the City Council, the Council approved City negotiating team has been in negotiations with each of the bargaining units for new terms.

The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market in order to retain and attract a high-quality workforce to serve our community across a range of services. Most position classifications in the City are comparable to those in other municipalities. The City contracted with Ralph Anderson & Associates to conduct a total compensation study using eleven “like” cities in the region for labor market comparisons.

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The City’s negotiating team met and conferred with representatives of the Hermosa Beach Police Officers’ Association to discuss wages, hours, and other terms and conditions of employment contained in the MOU that expired on June 30, 2022. This bargaining unit consists of Police Officers and Police Sergeants. The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below. The membership of HBPOA met and ratified the terms of the tentative agreement, set forth in the new MOU, hereby submitted to the City Council for approval.

Analysis:

The tentative MOU between the City and the Hermosa Beach Police Officers’ Association include the following negotiated terms:

1. Term of agreement to be July 1, 2022 through June 30, 2025;

2. Article 13.A- Base Salary: The parties agreed to the following salary increases over the next three years.
· Effective July 1, 2022, the salary schedule for Police Officer will increase by 3.1%; and the salary schedule for Police Sergeant will increase by 2.8%. · Effective July 1, 2023, the salary schedule for all classifications will increase by 2.5%. · Effective July 1, 2024, the salary schedule for all classifications will increase by 2.5%;

3. Article 13.B.2- One-Time Payment
· Fiscal Year 2022-2023: Effective the first pay period after ratification and Council approval, all full-time employees at the time of ratification holding positions in classifications assigned to HBPOA will receive a one-time, non-pensionable lump sum payment in the amount of $3,775.
· Fiscal Year 2023-2024: Effective the first pay period after July 1, 2023, all full-time employees holding positions in classifications assigned to HBPOA will receive a onetime, non-pensionable lump sum payment in the amount of $2,000. · Fiscal Year 2024-2025: Effective the first pay period after July 1, 2024, all full-time employees holding positions in classifications assigned to HBPOA will receive a onetime, non-pensionable lump sum payment in the amount of $2,000;

4. Article 19-Vacation: Effective July 1, 2022, commencing with the 5th year of service, the vacation accrual rate shall be increased from ninety-six (96) hours per year to one hundred twenty (120) hours per year;
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5. Article 20-Holidays: The parties agree Juneteenth (June 19) and Cesar Chavez Day (March 31) will be added to the list of City observed holidays. As a result of the two additional holidays, the holiday compensation monthly accrual will increase from 9.33 hours per month to 11 hours per month; and the maximum accrual will increase from 112 hours to 132 hours;

6. Article 27-Uniform Allowance: The uniform allowance will be increased from $772 per year to $1,000 per year;

7. Article 29.C.-Training Premium: The City agrees to pay each Police Officer assigned to Field Training Officer Duty seven percent (7%) of base salary per month. This sum shall be included in total compensation calculations for retirement purposes. · Assignments to the Field Training Officer Position, in Article 29 will be made through an open and fair selection process from a new eligibility list. · The number of Field Training Officer positions will be capped at six (6), the total number of positions at any given time to be determined at the Chief’s sole discretion. · A unit member is eligible to receive only one specialty assignment premium pay. · Upon establishment of the Crime Impact Team, the Community Lead Officer specialty assignment will be replaced by a Crime Impact Team specialty assignment. · Any unit member receiving a specialty pay premium will be expected to participate in auxiliary assignments (within each specialty unit), without additional pay, at the Chief’s discretion;

8. Article 29.C. and 34-Watch Commander Selection/Pay: The City agrees to pay each Police Officer assigned to Watch Commander duties a temporary upgrade pay in the sum of $5.00 per hour; assignments will be made through open and fair selection process from a new eligibility list;

9. Article 17-Retirement: The parties agree that the City will pay up to lowest cost employee only HMO Premium for retiree medical coverage; and

10. Article 41-Reopener for Article 10 and Exhibit A to the MOU: The City notified the POA of its City of Hermosa Beach Page 3 of 4 Printed on 10/6/2022
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10. Article 41-Reopener for Article 10 and Exhibit A to the MOU: The City notified the POA of its intent to place a measure on the November 8, 2022 ballot to repeal Ordinance No. N.S. 211 pertaining to the City’s Civil Service Rules, Chapter 2.76 of the Hermosa Beach Municipal Code. The parties agree to extend the Article 41 reopener to the term of the 2022-2025 MOU.

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

Policy:
• 1.2: Strategic planning. Regularly discuss and set priorities at the City Council and management level to prioritize work programs and staffing needs.

Fiscal Impact:

The total cost of the negotiated changes is $333,545 for FY 2022-2023, which would be appropriated from the General Fund’s Unspecified Contingency assigned fund balance of $730,693.

Attachments:

1. Resolution of the City Council of the City of Hermosa Beach, California, Adopting a Memorandum of Understanding with the Hermosa Beach Police Officers’ Association.

2. Memorandum of Understanding between the City of Hermosa Beach and the Hermosa Beach Police Officers’ Association for July 1, 2022-June 30, 2025.

Respectfully Submitted by: Vanessa Godinez, Human Resources Manager Concur: Angela Crespi, Deputy City Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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CITY OF HERMOSA BEACH
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,

CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING WITH THE HERMOSA BEACH POLICE OFFICERS’ ASSOCIATION.

WHEREAS, employees of the City of Hermosa Beach, California represented by the Hermosa Beach Police Officers’ Association, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and,
WHEREAS, the above bargaining unit has selected certain individuals to represent them; and,
WHEREAS, Employee and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding which has been ratified by a majority vote of the members of the Hermosa Beach Police Officers’ Association; and,
WHEREAS, the Employee and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

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

SECTION 1. The City Council of the City of Hermosa Beach resolves to enter into a Memorandum of Understanding to be effective for the period July 1, 2022 through and including June 30, 2025, and authorizes the City’s Chief Negotiator to sign the Memorandum of Understanding on behalf of the City.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.
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PASSED, APPROVED and ADOPTED on this 11th day of October, 2022.

Michael Detoy
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Michael Jenkins
City Clerk City Attorney
362

MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF HERMOSA BEACH
AND
HERMOSA BEACH POLICE OFFICERS’ ASSOCIATION
JULY 1, 2022- JUNE 30, 2025
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TABLE OF CONTENTS
ARTICLE 1 — PARTIES TO THE MEMORANDUM.......................................................... 1 ARTICLE 2 — RECOGNITION.......................................................................................... 1 ARTICLE 3 — SCOPE & IMPLEMENTATION OF THE MEMORANDUM OF UNDERSTANDING ................................................................................................. 1 ARTICLE 4 — MONTHLY MEETINGS.............................................................................. 1 ARTICLE 5 — JOB ACTION ............................................................................................. 2 ARTICLE 6 — NON-DISCRIMINATION ............................................................................ 2 ARTICLE 7 — MANAGEMENT RIGHTS........................................................................... 2 ARTICLE 8 — PROVISIONS OF LAW — INSEPARABILITY........................................... 4 ARTICLE 9 — FULL UNDERSTANDING, MODIFICATION, WAIVER ............................. 4 ARTICLE 10 — GRIEVANCE PROCEDURE .................................................................... 4 ARTICLE 11 — WORK SCHEDULE ................................................................................. 4 ARTICLE 12 — COMPENSATION - METHODS OF COMPENSATION........................... 5 ARTICLE 13 — BASE SALARY........................................................................................ 6 ARTICLE 14 — OVERTIME PRACTICES......................................................................... 7 ARTICLE 15 — INSURANCE COVERAGE..................................................................... 10 ARTICLE 16 — DEFERRED COMPENSATION ............................................................. 11 ARTICLE 17 — RETIREMENT........................................................................................ 11 ARTICLE 18 — LEAVE OF ABSENCE........................................................................... 14 ARTICLE 19 — VACATION............................................................................................. 14 ARTICLE 20 — HOLIDAYS............................................................................................. 14 ARTICLE 22 — BEREAVEMENT LEAVE....................................................................... 15 ARTICLE 23 — JURY DUTY........................................................................................... 16 ARTICLE 24 — LONGEVITY PAY .................................................................................. 16 ARTICLE 25 – EDUCATION INCENTIVE........................................................................ 16 ARTICLE 26 — PEACE OFFICER STANDARD AND TRAINING (POST) CERTIFICATE PAY & MAINTENANCE OF BENEFITS....................................... 16 ARTICLE 27 — UNIFORM ALLOWANCE ...................................................................... 16 ARTICLE 28 — AMMUNITION REPLACEMENT............................................................ 17 ARTICLE 29 — DETECTIVE DIVISION PREMIUM, TRAINING PREMIUM, LEAD

WORKER (OFFICER,) TEMPORARY UPGRADE PAY, TRAFFIC
OFFICER PREMIUM PAY..................................................................................... 17 ARTICLE 30 — PHYSICAL FITNESS TIME.................................................................... 18 364
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ARTICLE 31 – YEARLY SHIFT CHANGES .................................................................... 19 ARTICLE 32 — EXTRA JOB SIGN-UPS......................................................................... 20 ARTICLE 33 — SHIFT COVERAGE ............................................................................... 20 ARTICLE 34 — WATCH COMMANDER SELECTION ................................................... 21 ARTICLE 35 – PERFORMANCE REVIEW...................................................................... 21 ARTICLE 36 — DISCIPLINARY ACTIONS..................................................................... 21 ARTICLE 37 — LAYOFF................................................................................................. 22 ARTICLE 38 — ASSOCIATION DIRECTORS TIME....................................................... 22 ARTICLE 39 — CITY/POA DISCUSSION OPPORTUNITY ............................................ 22 ARTICLE 40 — REOPENER CLAUSE FOR ARTICLE 10 AND EXHIBIT A TO THE MOU .............................................................................................................. 22 ARTICLE 41 — DURATION OF CONTRACT ................................................................. 23 365
1 MEMORANDUM OF UNDERSTANDING

FOR THE
HERMOSA BEACH POLICE OFFICERS’ ASSOCIATION
ARTICLE 1 — PARTIES TO THE MEMORANDUM
This Memorandum of Understanding, hereinafter referred to as the "MOU" or the "Agreement," has been entered into, pursuant to the laws of the State of California and the City of Hermosa Beach, California, by and between the CITY OF HERMOSA BEACH, hereinafter referred to as the "City" or as "Management," and the HERMOSA BEACH POLICE OFFICERS ASSOCIATION, hereinafter referred to as the "Association." ARTICLE 2 — RECOGNITION
Pursuant to the provisions of the Meyers-Milias-Brown Act, (Government Code 3500, et seq.), the City agrees to, and does, recognize the Hermosa Beach Police Officers Association as the exclusive representative of the full-time positions in the classifications of POLICE OFFICER AND POLICE SERGEANT of the City of Hermosa Beach.

ARTICLE 3 — SCOPE & IMPLEMENTATION OF THE MEMORANDUM OF

UNDERSTANDING
A. This Memorandum of Understanding (MOU) constitutes the joint recommendation of Management and the Association. It shall not be binding in whole or in part upon the parties unless and until the following conditions have been complied with:

1. The Association shall notify the City Council in writing that it has formally approved the Memorandum of Understanding in its entirety.

2. The City Council shall approve this Memorandum of Understanding.

3. This MOU has been reached following good-faith negotiations, by the authorized Management representative of the City Council and the authorized representative for the Hermosa Beach Police Officers Association.

ARTICLE 4 — MONTHLY MEETINGS
A. In the interest of fostering and continuing a spirit and atmosphere of harmonious employer-employee relationships, it is agreed that the Association Board of Directors shall meet once a month, or as designated by both parties, at a designated time and place with the Chief of Police or designee of the Department. There shall be no less than two (2) Board members present for each such meeting.

B. It is further agreed that the Association and the City Manager shall meet when requested by the Association to best effect implementation of this document. 366
2 ARTICLE 5 — JOB ACTION
A. The Association and its members agree that during the term of this MOU there shall be no strike.

B. In the event of an unauthorized strike, the City agrees that there will be no liability on the part of the Association provided the Association promptly and publicly disavows such unauthorized action; orders the employees to return to work and attempts to bring about a prompt resumption of normal operations; and provided further, that the Association notifies the City in writing, within 48 hours after the commencement of such strike, what measures it has taken to comply with the provisions of this strike.

C. In the event such strike by the Association has not affected resumption of normal work practices, the City shall have the right to take appropriate disciplinary action.

ARTICLE 6 — NON-DISCRIMINATION
Both parties to this Agreement agree not to discriminate against any employee or applicant because of age, gender, race, national origin, religion, color, ancestry, marital status, sexual orientation, physical or mental disability, medical condition, and/or Association membership or activity. Additionally, the City expects and requires all employees to treat one another with dignity and respect. Harassment of fellow employees is a violation of law.

No employment decision may be made based upon an employee's submission to or rejection of such conduct. It is the responsibility of any employee, who believes that they are the victim of such harassment, whether sexual, racial, ethnic or religious, to report the conduct to their Division Commander, Chief of Police, Human Resources Director/Manager or the City Manager in a timely manner.

ARTICLE 7 — MANAGEMENT RIGHTS

1. Manage the City.

2. Schedule working hours.

3. Establish, modify or change work schedules or standards.

4. Institute changes in procedures.

5. Direct the work force, including the right to hire, promote, demote, transfer, suspend, discipline or discharge any employee.

6. Determine the location of any new facilities, buildings, departments, divisions, or subdivisions thereof, and the relocation, sale, leasing or closing of facilities, departments, divisions, or subdivisions thereof.

7. Determine services to be rendered.

8. Determine the layout of buildings and equipment and materials to be used herein.

9. Determine processes, techniques, methods and means of performing work. 367
3 10. Determine the size, character and use of inventories.

11. Determine the financial policy including accounting procedures.

12. Determine the administrative organization of the system.

13. Determine the size and characteristics of the work force.

14. Determine the allocation and assignment of work to employees.

15. Determine selection, promotion, or transfer of employees.

16. Determine policy affecting the selection of new employees.

17. Determine the establishment of quality and quantity standards and the judgment of quality and quantity of work required.

18. Determine administration of discipline.

19. Determine control and use of City property, materials and equipment.

20. Schedule work periods and determine the number and duration of work periods.

21. Establish, modify, eliminate or enforce policies, rules and regulations.

22. Place work with outside firms.

23. Determine the kinds and numbers of personnel necessary.

24. Determine the methods and means by which such operations are to be conducted.

25. Require employees, where necessary, to attend in-service training.

26. Determine duties to be included in any job classifications.

27. Determine the necessity of overtime and the amount of overtime required.

28. Take any necessary action to carry out the mission of the City in cases of an emergency.

The exercise of the foregoing powers, rights authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the specific and express terms of this Memorandum of Understanding, City Personnel Ordinance and Personnel Rules and Regulations, the Public Safety Officers Procedural Bill of Rights, and other statutory law.

Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management's rights shall 368
4 impact on employees of the bargaining unit, the City agrees to meet and confer with representatives of the Association, upon request by the Association, regarding the impact of the exercise of such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding.

ARTICLE 8 — PROVISIONS OF LAW — INSEPARABILITY
It is mutually understood that this MOU is, and shall be, subject to all current and future applicable state, federal and local laws. If any article, part, provision or segment of this MOU is, or shall be, in conflict with or inconsistent with such applicable provisions of federal, state or local law, or is otherwise held to be invalid, or unenforceable by any court of competent jurisdiction by final decree, such article, part or provision thereof shall be superseded by such applicable law and the remainder of this MOU shall in no way be affected thereby.

ARTICLE 9 — FULL UNDERSTANDING, MODIFICATION, WAIVER
A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right, and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this agreement.

C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council.

D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

ARTICLE 10 — GRIEVANCE PROCEDURE
The Grievance Procedure is attached as Exhibit A and incorporated herein by reference.

ARTICLE 11 — WORK SCHEDULE
A. The City agrees to the utilization of the 3/36 plan for all officers and sergeants assigned to patrol, motors and K-9. There will be no payback days during the months of approximately December through May. There will be payback days during the months of approximately June through November.

B. The Sergeants and Officers assigned to investigations and administrative positions will work a 4136 schedule (four nine-hour days/week) during the months of December through May and a 4/40 schedule (four ten-hour days/week) during the months of June through November
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5 C. The exact change over dates from payback to no payback for patrol, motors and K9 will be determined by the Patrol Commander based upon the current twenty-one (21) day cycle.

D. In the event of an emergency situation, the City may cancel, alter or amend the work schedule as necessary, immediately.

It is mutually agreed that for the reduction in hours expressed in "A" and "B" above, the City, for market salary comparison purposes only, shall increase base salary 5% as a credit.

ARTICLE 12 — COMPENSATION - METHODS OF COMPENSATION
A. Methods of Compensation:

1. Compensation shall be determined on an hourly basis.

2. Payments due shall be paid on a bimonthly basis unless otherwise mutually agreed. By mutual consent early payments and other modifications can be made.

3. Base hourly salary shall be considered the rate of pay for a particular classification without consideration of any other form of compensation.

B. Salary Advancements within Base Pay Range:

1. Step Advancement:
a. All salary step advances shall be based on merit and fitness. Eligibility for a step advancement requires that the employee have earned an overall rating of “4” Meets Expectations or higher on the employee’s annual Performance Evaluation. All increases shall be recommended by the Department Head and approved by the Personnel Director/City Manager. Merit increases shall be effective at the beginning of the next pay period (1st or 16th of the month).
b. Subject to paragraph a. above, upon the successful and satisfactory completion of twelve (12) months service (exclusive of police recruit status), employees are eligible to be advanced one step within their range and yearly thereafter until the maximum within the range achieved.

2. Promotion
a. An employee who is promoted to a position in a class with a higher salary rate shall be entitled to the lowest step in the higher range, which exceeds the present rate of pay with the intent of increasing the base salary rate by at least 5%.
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6 C. Compensatory Time:
a. Employees may accrue up to 175 hours of compensatory time and may cash out all or part of such accrued time at any time, subject to the budgetary constraints of the department.

ARTICLE 13 — BASE SALARY
A. Effective July 1, 2022 in response to the results of the 2022 Ralph Anderson & Associates Compensation Survey, the base monthly salary schedule will be increased to the market median of 3.1% for Police Officers and an adjusted market median of 2.8% for Police Sergeants. The retroactive adjustment will be made for employees who are currently employed with the City as of the date the City Council approves the Agreement.

TITLE Step 1 Step 2 Step 3 Step 4
POLICE SERGEANT $9,505 $9,980 $10,479 $11,003
POLICE OFFICER $7,563 $7,941 $8,338 $8,755
Effective July, 1, 2023, the base salary schedule will be increased by 2.5% for Police Officers and Police Sergeants as follows:

TITLE Step 1 Step 2 Step 3 Step 4
POLICE SERGEANT $9,743 $10,230 $10,742 $11,279
POLICE OFFICER $7,752 $8,140 $8,547 $8,974
Effective July, 1, 2024, the base salary schedule will be increased by 2.5% for Police Officers and Police Sergeants as follows:

TITLE Step 1 Step 2 Step 3 Step 4
POLICE SERGEANT $9,986 $10,486 $11,010 $11,561
POLICE OFFICER $7,946 $8,343 $8,760 $9,198
B. One-Time Non-Pensionable Lump Sum Payment
Fiscal Year 2022-2023: Effective the first pay period after ratification and Council approval, all full-time employees at the time of ratification holding positions in classifications assigned to HBPOA will receive a one-time, non-pensionable lump sum bonus in the amount of $3,775.00.

Fiscal Year 2023-2024: Effective the first pay period after July 1, 2023, all full-time employees holding positions in classifications assigned to HBPOA will receive a one-time, non-pensionable lump sum bonus in the amount of $2,000.00.

Fiscal Year 2024-2025: Effective the first pay period after July 1, 2024, all full-time employees holding positions in classifications assigned to HBPOA will receive a one-time, non-pensionable lump sum bonus in the amount of $2,000.00. 371
7 ARTICLE 14 — OVERTIME PRACTICES
A. 7K Exemption
The City of Hermosa Beach has exercised its ability to take a statutory 7K exemption for sworn police personnel. The work period for such employees shall be 28 days in length commencing on Sunday, May 22, 1988, at 12:01 A.M.

B. F.L.S.A. Overtime
All employees required to perform in excess of the standard work shift, or at times other than their regularly scheduled work shift, shall receive compensation at the rate of time and one-half their regular rate of pay. The regular rate of pay shall include the following components in addition to base salary.

1. Educational incentive

2. Assignment Pay

3. Longevity Pay
C. Paid Leave Exclusions
In determining an employee's eligibility for overtime compensation in a workday, paid leaves of absence and unpaid leaves of absence shall be excluded from the total hours worked. For this purpose, paid leaves of absences include, but are not limited to the following:

1. Vacation

2. Holiday Leave

3. Sick Leave

4. Compensatory Leave

5. 4850 Time

6. Jury Duty

7. Military Leave
D. Compensatory Time

1. In lieu of receiving cash payment for overtime hours, an employee may elect the option of taking compensatory time off.

2. Compensatory time shall be earned at the time and one-half rate for each hour worked. An employee may accrue up to a maximum of 175 hours (after conversion at time and one-half) compensatory time.

E. Overtime Authorization
All overtime requests must have prior written authorization of a supervisor prior to the commencement of such overtime work. Where prior written authorization is not feasible, explicit verbal authorization must be obtained. Where verbal authorization is obtained, written authorization must be obtained as soon thereafter as practicable. 372
8 Dispatched calls beyond the end of duty time are considered as authorized. An employee's failure to obtain prior written approval, or explicit verbal authorization followed by written authorization, will result in the denial of the overtime request.

F. Shift Trades

1. The practice of shift trading shall be voluntary on behalf of each employee involved in the trade. The trade must be due to the employee's desire or need to attend to a personal matter and not due to the department's operations. The employee providing the trade shall not have his/her compensable hours increase as a result of the trade; nor shall the employee receiving the trade have their compensable hours decreased as a result of the trade. Any premium pay or other extra compensation shall continue to accrue only to the person originally entitled to the premium pay or extra compensation. Any hours worked beyond the normal workday will be credited to the individual actually doing work. "Paybacks" of shift trade are the obligation of the two employees involved in the trade. Paybacks are to be completed within one calendar year of the date of the initial shift trade. Any dispute as to the paybacks is to be resolved by the involved employees, and under no circumstances will the department be obligated for any further compensation whatsoever to any of the involved employees. The department is not responsible in any manner for hours owed to employees by other employees that leave the employment of the City or are assigned other duties. A record of all initial shift trades and "paybacks" shall be maintained by the involved employees on forms provided by the department ("shift trade log.")

2. If one individual fails to appear for the other (regardless of the reason), the person who was scheduled as a result of the shift trade will be listed as absent without leave and may be subject to disciplinary action.

G. Early Relief Policy
The practice of early shift release shall be voluntary on behalf of each employee involved in the relief. The employee providing the early relief shall not have his/her compensable hours increase as a result of the early relief, nor shall the employee relieved early have their compensable hours decreased as a result of the early relief. "Paybacks" of early relief hours are the sole obligation of the two employees involved in the early relief. Any dispute is to be resolved by the involved employees, and under no circumstances will the department be obligated for any further compensation whatsoever to any of the involved employees. The department is not responsible in any manner for hours owed to employees by other employees that leave the employment of the City or are assigned other duties.

H. Training Time
Attendance at training school/facilities, which improves the performance of regular tasks and/ or prepares for job advancement are not compensable for hours in excess of the employee's normal work shift. Any time spent in excess of the normal work shift will not be counted as working time and is not compensable in any manner whatsoever. Time spent in studying and other personal pursuits is not compensable hours of work.
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9 I. City Vehicle Use
Except as otherwise herein provided, employees who are provided with a City vehicle to travel to and from work shall not be compensated in any manner whatsoever for travel time to and from work. This provision also applies in those situations where the radio must be left on and monitored.

J. City Motorcycle Use
Employees assigned to motor duty may, with the approval of the Police Chief, use the city assigned motorcycle to travel to and from work. Such travel time will not be compensated in any manner whatsoever (even when the employee is required to leave the radio on and monitor the radio.) Any maintenance the employee performs on the motorcycle while away from the police facility will not be considered hours worked and will not be compensated in any manner whatsoever.

K. Clothes Changing
Employees are not authorized to wear their uniforms or any part thereof that is distinguishable as such unless on duty. Employees are provided with a locker for their personal convenience. Any employee may or may not utilize the locker for storage and changing purposes at their own discretion. Nothing herein prevents an employee from wearing their uniform to and/or from their residence to work as long as the badge and insignia are covered in a non-police issued garment such as a windbreaker. Employees choosing to wear their uniforms covered to and/or from work should not wear their "Sam Browne" belt. Time spent in changing clothes before or after shift, is not considered hours worked and is not compensable in any manner whatsoever.

L. Call Backs
Call Back duty occurs when an employee is ordered to return to duty on a nonregularly scheduled work shift. Call back does not occur when an employee is held over from their prior shift or is working prior to their regularly scheduled shift. An employee called back to duty shall be credited with a minimum of two hours work commencing when the employee reports to work. Any hours worked in excess of two hours shall be credited on an hour-for-hour basis for actual time worked. This provision is to be distinguished from Court pay, which is to be used when an employee is called back to court.

M. Court Time

1. When an officer is physically called to court, they shall be credited on an hour-for-hour basis for the time actually spent in court. They shall receive a minimum two (2) hours paid at time and a half for a morning appearance with a minimum two (2) hours paid at time and a half for an afternoon appearance. Travel time shall be included for any subpoenaed appearance other than to the Torrance Courthouse.
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10 2. An officer who is subpoenaed to testify telephonically shall receive a minimum two (2) hours paid at time and a half for a morning appearance and a minimum of (2) hours paid at time and half for an afternoon appearance.

N. Standby Court Time
An employee who while off duty is on court standby status may leave a telephone number where they may be reached while on court standby. Such time is not considered hours worked under the Fair Labor Standards Act. The employee will receive straight time pay, up to a maximum of 8.5 hours per day, for standby during the pendency of the case.

ARTICLE 15 — INSURANCE COVERAGE
A. Life Insurance
City shall provide a life insurance policy for each employee, payable in the amount of $60,000 upon such employee's death.

B. Mental Health
City shall make such a plan available to City employees; the full cost to be paid by the employee.

C. Vision Insurance
City shall make such a plan available to City employees; the full cost to be paid by the employee.

D. Medical Health Insurance
The City will provide employees a choice of a Preferred Provider Option (PPO) or a Health Maintenance Organization (HMO), both of which will include prescription coverage.

For the benefit years beginning January 1, 2018 and later, the City’s maximum monthly premium contribution toward medical insurance for each employee’s selected plan and level of coverage will be $1,931.04 (family rate in effect for the 2015 policy year). Employees choosing a medical insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

The current medical plan or its equivalent, to remain in force during the term of this MOU. City shall meet and consult should there be a change in providers or plan structure.
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11 The HMO plan shall have no greater than a $20.00 office visit and prescription copay during the term of this Agreement.

E. Dental Insurance

1. City shall provide for Association members a dental insurance plan to include a choice of an indemnity plan or a pre-paid plan.

2. For the benefit years beginning January 1, 2018 and later, the City’s maximum monthly premium contribution toward dental insurance for each employee’s selected plan and level of coverage will be $226.30. Employees choosing a dental insurance plan and/or coverage level with a monthly premium that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

F. Long Term Disability
Employees are provided with long term disability insurance coverage through the association.

ARTICLE 16 — DEFERRED COMPENSATION
City agrees to make available to all employees in the Unit the citywide Deferred Compensation Plan. All participants being then eligible to vote on decisions of the Deferred Compensation Committee. Members of the Association may participate in any of the Deferred Compensation plans provided for City employees.

ARTICLE 17 — RETIREMENT
A. This paragraph A is subject to the provisions in paragraph B, below.

Tier I. The City provides the PERS 3% at 50 Plan with one year final compensation to employees hired prior to July 1, 2011.

Tier Il. For employees hired on or after July 1, 2011, the PERS retirement benefit formula shall be PERS 2% © 50. July 1, 2011 was the effective adoption date of the new contract with PERS. Other retirement benefits for employees hired on or after this adoption date will remain the same as employees hired prior to this effective date, including Section 20042, One Year Final Compensation and Sections 21624, 21626, and 21628, Post-Retirement Survivor Allowance.

Effective the first payroll period commencing on or after City Council adoption of the 2012-2015 MOU, unit members employed prior to January 1, 2013, shall personally fund 3% of compensation earnable as and for the individual member’s normal employee PERS contribution.

Effective the first payroll period commencing on or after July 1, 2013, all of the above unit members shall personally fund 6% of compensation earnable as and for the individual member’s normal employee PERS contribution. 376
12 Effective the first payroll period commencing on or after July 1, 2014, all of the above unit members shall personally fund 9% of compensation earnable as and for the individual member’s normal employee PERS contribution.

The City shall adopt the necessary resolution so that such payments made by employees may be excluded from taxable income pursuant to section 414(h) (2) of the U.S. Internal Revenue Code.

Whether as authorized by Government Code § 20692, 20636(c)(4) or any other statutory or other legal basis, the City shall not report to PERS as any type of compensation, any portion of the normal employee PERS contributions required by PERS.

B. AB 340 (signed by the Governor on 09/07/12 and effective January 1, 2013,) shall in its entirety be given full force and effect as it may from time to time exist, during and after the term of the 2012-15 MOU, as described below. Any provision in the 2012-15 MOU which contradicts any provision of AB 340 shall be deemed null and void, with the contrary AB 340 provision(s) being given full force and effect. Therefore, no provision of AB 340 shall be deemed to impair any provision of the 2012-15 MOU or any MOU, Agreement, Rule or Regulation predating the 2012-15 MOU.

Unit members who are “new members” as defined in the above AB 340, shall individually pay an initial Member CALPERS contribution rate of 50% of the normal cost rate for the Defined Benefit Plan in which said newly hired employee is enrolled, rounded to the nearest quarter of 1%, or the current contribution rate of similarly situated employees, whichever is greater. (AB 340 – Government Code section 7522.30)
Unit members who are “new members” as defined in the above AB 340, shall be enrolled in the AB 340 provided for SAFETY OPTION PLAN TWO (2.7% at 57) (Government Code section 7522.25(e), with final pensionable compensation (as defined for new members in Government Code § 7522.34) being determined by reference to the highest average annual pensionable compensation earned during a period of 36 consecutive months. (Government Code § 7522.32(a).) C. Retiree Medical
Tier I. Retiree medical insurance stipends provided to employees who retired prior to July 1, 2003 shall remain at existing amounts.

Tier II. Employees covered by this agreement who retire from the City of Hermosa Beach after July 1, 2003 and were hired before July 1, 2017, will be eligible for the following medical insurance benefits:

1. The City will pay an amount up to the lowest cost employee only HMO premium available through the City's medical insurance provider for employees who complete a minimum of twenty (20) years total full-time sworn police service with the City, regardless of the employee's age at the time of separation from city service.
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13 2. For retirement at age fifty-five (55) with a minimum of fifteen (15) years total full-time service with the City, the City will pay an amount up to the lowest cost employee only HMO rate available through the City's medical insurance provider.

3. Said benefit provided under Sections 1 and 2 above, shall commence with the first month following the employee's approved retirement date by Cal PERS.

4. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.

5. Any payments made by the City shall normally be made directly to a medical insurance provider. However, other payment arrangements may be considered.

6. Any employee receiving a benefit under this article agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g.

Medicare, Medicaid, etc.) for which they may become eligible unless such Federal and/or State medical insurance plan or equivalent no longer exists.

7. Upon enrollment in Medicare, the City agrees to pay the premium for purchasing coverage equivalent to the benefits provided under the existing Medicare "Part B" program.

8. For employees not eligible for Medicare benefits, who were employed prior to the City's participation in the Medicare program, the City will continue retiree medical insurance benefits the employee is eligible for under section 1 or 2 of Tier Two benefits above.

Tier III. Employees covered by this agreement who are hired on or after July 1, 2017 and who retire from the City of Hermosa Beach will be eligible for the following medical insurance benefits:

1. For service retirement at age fifty-five (55) with a minimum of twenty (20) years of continuous full-time service with the City, the City will pay a $400 per month medical insurance supplement.

2. The benefit provided Tier Three, shall commence
with the first month following the employee's approved retirement date by Cal PERS.

3. In order to be eligible for medical supplement payments, an employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.

4. Any payments made by the City shall normally be made directly to a medical insurance provider. However, other payment arrangements may be considered.
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14 5. The payment of the medical insurance supplement will end when the employee reaches the age of eligibility for any Federal or State medical insurance plan.

ARTICLE 18 — LEAVE OF ABSENCE
Management agrees to allow all employees covered by this MOU to take a leave of absence without pay, not to exceed 60 days, in conjunction with, or in addition to, their regular vacation time. This leave will only be allowed every other year. Timing and duration of leave subject to approval of and subject to the needs of the department. Any request for such leave must be delivered to the Chief a minimum of 30 days in advance. This provision shall not reduce any leave entitlement an employee may have under the Military and Veterans Code.

ARTICLE 19 — VACATION
A. Effective July 1, 2022, vacation accrual rates for all employees covered by this agreement shall be as follows:

1. Upon hire, at the rate of 96 hours/year.

2. Commencing with the 5th year, at the rate of 120 hours/year.

3. Commencing with the 8th year, at the rate of 136 hours/year.

4. Commencing with the 15th year, at the rate of 160 hours/year.

5. Commencing with the 16th year, at the rate of 168 hours/year.

6. Commencing with the 17th year, at the rate of 176 hours/year.

B. An employee covered by this Agreement may accrue vacation time to a maximum of 270 hours. Cash out of any earned but unused vacation accrual in excess of 270 hours (as of January 31st each year) shall be automatically cashed out as part of the February 20th payroll. Those employees who as of March 1, 1995 have an accrual balance in excess of 270 hours shall have that amount as their accrual maximum.

Lower accruals will become their new maximum until such time as their bank reaches 270 hours.

ARTICLE 20 — HOLIDAYS
A. Effective July 1, 2022 all employees shall receive 11 hours per month of "Holiday Comp". This is a result of two additional observed holidays, Cesar Chavez Day and Juneteenth.

B. All personnel are scheduled without regard to holidays and receive holiday compensatory time in lieu of paid holidays off.

C. An employee covered by this Agreement may accrue Holiday Comp time to a maximum of 132 hours. Cash out of any earned but unused Holiday Comp accrual in excess of 132 hours (as of January 31st of each year) shall be automatically cashed out as part of the February 20th payroll.

D. All personnel have the option of receiving pay by cashing out holiday comp time each pay period in which it is accrued. Subject to regulations established by CalPERS, this 379
15 compensation shall be reported to CalPERS. Current CalPERS regulations specifically state that should an employee utilize this cash out provision ONLY during their final compensation period, said additional compensation shall be excluded from reportable compensation.

ARTICLE 21 — SICK LEAVE
A. Employees shall accrue 10 hours of sick leave per month until the commencement of their 15th year, at which time they will accrue 12 hours per month.

B. After an employee accrues and maintains 176 hours of sick leave, the employee may cash out annually up to a maximum of 96 hours of accrued sick leave at the employee’s current hourly pay rate.

C. In the case of serious illness of a member of the immediate family, the employee may utilize sick leave. Immediate family for the purpose of this section shall be defined as:
father; mother; father-in-law; mother-in-law; grandparents; brother; sister; spouse; or legal dependent. Employees may predesignate and substitute other members for those members defined as "immediate family." The intent of this provision is not to expand the number of persons included in the definition of "immediate family" or to increase paid leave opportunities, but, rather to recognize variation in family structure (e.g. stepmother for mother).

D. Upon resignation or retirement from City employment, sick leave accrued prior to July 1, 2017, at the employee’s election, will be paid at the current hourly pay rate, on the following conditions:

1. 25% pay 5 through 9 years of total full time City service.

2. 50% pay 10 through 19 years of total full time City service.

3. 100% pay 20 + years of total full time City service.

Except as otherwise provided in B above, sick leave accrued on or after July 1, 2017, shall not be paid out at resignation or retirement.

Pursuant to Government Code § 20965, related CalPERS rules, and the City’s contract with CalPERS, upon retirement from City employment, unused accumulated sick leave at the time of retirement may be converted to additional service credit.

ARTICLE 22 — BEREAVEMENT LEAVE
Each employee shall receive a maximum of three shifts per calendar year to be utilized for bereavement leave because of a death in their immediate family. Immediate family shall be defined as in Article 21 C - SICK LEAVE. Said time will not be cumulative from one twelve month period to another nor will pay in lieu of unused leave for bereavement be provided. The Chief may grant one (1) additional shift in the event of a death that requires extended travel. For the purposes of bereavement leave, parents in-law, step children and parents, and persons living within the same household are to be considered in the definition of "immediate family".
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16 ARTICLE 23 — JURY DUTY
If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner's Jury, Employees covered by this Agreement shall remain in their regular pay status. All jury fees except mileage reimbursement shall be returned to the City.

ARTICLE 24 — LONGEVITY PAY
Employees shall receive additional compensation of 5% above base salary for each level of full-time sworn police service with the City of Hermosa Beach according to the following schedule. The effective date of this premium is the first day of the pay period following anniversary date.

Upon commencement of the fifth (5th) year (Not reportable to PERS, as PERS requires “exceeding of 5 years”)
Upon commencement of the tenth (10th) year
Upon commencement of the fifteenth (15th) year
Upon commencement of the twentieth (20th) year
ARTICLE 25 – EDUCATION INCENTIVE
Employees shall receive tuition reimbursement for course, fees, books and tuition (up to CSU rates, including summer sessions). Subject to the City Manager/Chief of Police’s approval; employee will reimburse the City for all expenses if employee fails or does not complete the stated courses or if the employee leaves the City during the semester the employee is enrolled and received payment.

ARTICLE 26 — PEACE OFFICER STANDARD AND TRAINING (POST)

CERTIFICATE PAY & MAINTENANCE OF BENEFITS
A. Peace Officer Standard Training (POST) Certificate Pay. In recognition of formal professional training, obtained from either an accredited educational institution or through P.O.S.T. sanctioned training, or a combination of both, City agrees to a concept of pay as an adjunct to base monthly salary for achieving and maintaining various levels of professional proficiency certification as follows:

Employees who obtain an A.A. or A.S. degree or an Intermediate P.O.S.T. Certificate shall receive additional compensation of 5% above base salary.

Employees who obtain a B.A. or B.S. degree or Advanced P.O.S.T. Certificate shall receive additional compensation of 10% above base salary.

ARTICLE 27 — UNIFORM ALLOWANCE
A. Effective July 1, 2022, uniform allowance for Officers and Sergeants shall be $1,000.08 per year, payable through the regular payroll schedule. Uniform allowances shall be reported to CalPERS periodically when earned, on a per pay period basis, in accordance with the Public Employees’ Retirement Law (PERL) 381
17 and applicable regulations. These items are not reportable for “new members” under Public Employee’s Pension Reform Act of 2013 (PEPRA), as defined by Government Code Section 7522.04(f).

B. An absence due to sick leave, or leave of absence without pay, exceeding sixty days (60), days shall result in a pro-rata reduction in uniform allowance for the time of the absence.

ARTICLE 28 — AMMUNITION REPLACEMENT
A. In addition to the quarterly qualification ammunition, each officer will be allowed to utilize fifty (50) rounds of ammunition for their primary duty weapon, at City expense, each month at the firing range used by the Department. If necessary, the City will also pay for the expense of using the range. The ammunition will be used to practice on an approved course of fire so that officers will become more proficient with their service weapons.

B. The City will not compensate officers for the time spent to utilize this ammunition.

Officers must use the allotted ammunition each month, it does not accumulate.

ARTICLE 29 — DETECTIVE DIVISION PREMIUM, TRAINING PREMIUM,

LEAD WORKER (OFFICER,) TEMPORARY UPGRADE PAY, TRAFFIC

OFFICER PREMIUM PAY
A. Detective Division Pay. The City shall pay 9% of base salary per month to each officer assigned to a Detective Special Assignment, including background/training detective, administrative position or specialty assignment. That compensation shall be for the additional time detectives are "on-call." This pay shall be included in total compensation calculations for retirement purposes.

B. Police Liaison Premium. The City shall pay 7% of base salary per month to each employee assigned as Community Lead Officer. The officer in this position serves as a special liaison to the community. This pay shall be included in total compensation calculations for retirement purposes. Upon establishment of the Crime Impact Team, the Community Lead Officer specialty assignment will be replaced by a Crime Impact Team specialty assignment.

C. Field Training Officer Training Premium. The City shall pay 7% of base salary per month to each officer assigned to serve as a as Field Training Officer.

Assignments to Field Training Officer will be made through an open and fair selection process from a new eligibility list. There can be no more than six (6) Field Training Officer assignments at any given time. The number of Field Training Officer at any given time will be determined at the sole discretion of the Chief of Police.

D. Traffic Officer Premium. The City shall pay 7% of base salary per month to each officer assigned to Traffic Officer. This sum shall be payable when on duty, during hazardous duty disability leaves, and during absences from work of less than one month. This pay shall be included in total compensation calculations for retirement purposes.
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18 E. The Special Assignments in this Article are of a temporary duration. All Special Assignments shall be filled through an agreed upon selection process.

Assignments to the Crime Impact Team will be for a period of 1 (or 2) year.

Assignment to a Detective, Administrative, Backgrounds and Training, or Motor Officer positions shall be for a period of four (4) years without extension. The Chief of Police may extend any Special Assignment for up to one year if it benefits the continued operations of the Department. Extensions of a Specialty Assignment should not be considered automatic and they will only be granted if a rotation will create a hardship on the Department. The right to assign and reassign shall be vested solely with the Chief of Police.

F. Canine Officer/Animal Premium. The City shall pay 7% of base salary per month to each officer assigned to the Police Service Dog Program as a Police Service Dog handler. This amount shall be considered as full compensation for the additional incidental hours required for the animals veterinary care; routine care for the K-9's physical health, welfare and grooming; daily and routine maintenance to the K-9 patrol vehicle and field equipment. This sum shall be included in total compensation calculations for retirement purposes. The assignment is only in effect through the service life of the K-9 partner. Once the K-9 is retired, a selection process will take place for a new K-9 assignment through an agreed upon selection process. New selections will be based on the needs of the Department.

G. Employees assigned full time to the Department's Police Service Dog Program are subject to schedule changes contingent on meeting Police Dog Program priorities and Department needs.

H. The parties understand and agree that all assignments to extra-pay positions are temporary assignments, and that officers will be rotated into and out of these assignments as part of the department's job enrichment and career development program.

I. In conformity with this understanding, each officer who accepts an assignment shall sign a statement indicating that they understand the temporary nature of the assignment. Nothing herein shall abrogate an employee's appeal rights as set forth in Government Code Section 3304.

J. Time spent "on-call" shall not be considered hours worked for FLSA purposes and is not compensated in any manner.

K. An employee is eligible to receive only one specialty assignment pay at a time.

L. Any employee receiving a specialty pay premium will be expected to participate in auxiliary assignments (within each specialty unit), without additional pay, at the discretion of the Chief of Police.

ARTICLE 30 — PHYSICAL FITNESS TIME
The City and the Association agree to a program providing for an on-duty workout period for Officers and Sergeants under the following conditions and as approved by the Chief of Police:
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19 A. The workout shall be of thirty (30) minutes duration, beginning when the employee enters the workout facility. The workout shall take place within the City or within 1/4 mile of the City boundary.

B. The work out shall be conducted during “Code-7” lunch period.

C. There is no interruption of service to the City.

D. Release time to work out is at the discretion of the City.

E. Individuals may be barred from this program at City discretion if there is evidence of abuse.

ARTICLE 31 – YEARLY SHIFT CHANGES
A. There will be four (4) quarterly shift changes per twelve (12) month period. These quarterly shift changes shall begin on the first Sunday of the first month of each quarter. The quarters shall run as follows:

1. June, July, August

2. September, October, November

3. December, January, February

4. March, April, May
Although there will be four (4) shift changes in a twelve month period, employees shall bid on a semi-annual basis for two consecutive shifts at a time.

B. For shift bidding purposes, the schedule will be posted on October 1, for the quarters December-February and March-May and on April 1 for the quarters June-August and September-November. The sign-up schedule will remain posted for thirty (30) days from the date of posting for employee shift bidding. Management will then have thirty (30) days to finalize the schedule in advance of the schedule change.

C. Employees are not mandated to rotate between day and night shifts. Bidding for shifts and days off shall be made on a seniority basis. Management will continue to assign new hire employees to shifts only, without regard to days off, through completion of their probation.

D. With regard to new hire employees, following the successful completion of their probationary period, the employee will be allowed to bid for days off on a seniority basis.

E. In order to provide scheduling protections to less senior employees, those without sufficient longevity to bid for an alternate shift assignment may request, via the Field Services Division Commander, a shift rotation for one (1) deployment quarter in a twelve (12) month period. It shall be the sole responsibility of the junior employee wishing such a shift rotation to notify the Field Services Division Commander immediately upon posting of each shift bidding schedule. 384
20 F. In the event that a less junior employee qualifies for a shift rotation and desires to exercise their prerogative to rotate to another shift, the employee with the least seniority in the bidding process who has bid on a shift will be "bumped" to an alternate shift in order to provide a shift opening for the junior employee. The senior employee shall retain the right to select the deployment quarter in which they will be displaced in the rotation. All other seniority rights shall remain in full force and effect.

ARTICLE 32 — EXTRA JOB SIGN-UPS
A. Regular officers of the Hermosa Beach Police Department will be given priority over reserve officers in the assignment of extra jobs. No restrictions on the number of regular officers who can sign up for extra jobs shall be imposed. Officers and Sergeants will be compensated for all hours worked on an overtime basis for extra job sign-ups at time and one-half.

B. Special assignments are to be appointed by a Lieutenant or above, with the exception of any premium pay assignment set forth in Article 28 for which the assignment is filled as part of the shift rotation.

C. To be eligible for an extra job, an officer must be off of training. The officer must have signed up for the job at least five (5) days prior to the date listed on the job posting. If no regular officer has signed up for the job five (5) days prior to the listed date, the job may be assigned to a reserve officer. Available extra jobs will be posted on the bulletin board at least ten (10) days in advance of the job date.

D. In the matter of foot patrol and beach patrol jobs, a monthly schedule will be posted, when possible, at least five (5) days prior to the first day of the month. A sign-up list for foot patrol and beach patrol extra jobs will be posted at least ten (10) days prior to the date of the job for the following month. Failure to work a job assignment after having been selected to do so will be deemed to be a violation of general orders. For emergency reasons, an officer may provide a replacement for the extra job from one of the other regular officers to cover the assigned job. For the same reasons, and with the permission of the Division Commander, a reserve officer may be used as a replacement in an emergency situation.

E. Nothing herein shall prohibit the City from hiring temporary civilian employees to perform police related duties in the enforcement of Municipal Code provisions. Any additional assignments of temporary civilian employees shall be subject to the meet and confer process.

ARTICLE 33 — SHIFT COVERAGE
If for any reason the Police Department cannot meet a minimum three-person staffing standard requirement (consisting of Watch Commander and two area cars), the Department shall have the right to fill positions with Certified Level I Reserve Officers. This may be done only when all regular officers have been contacted to determine their availability to cover the shift or a portion of the shift, which will be understaffed. 385
21 ARTICLE 34 — WATCH COMMANDER SELECTION
The Chief of Police shall have the right to establish criteria for selection of officers to be placed on the Watch Commander's list. Assignments will be made through an open and fair selection process from a new eligibility list to be established at the discretion of the Chief. The Chief shall select any number to be placed on the list and may remove officers or add officers to the list at any time.

The City shall pay officers performing as Watch Commander the sum of five dollars ($5.00) per hour as special duty pay. This pay shall be included in total compensation calculations for retirement purposes.

ARTICLE 35 – PERFORMANCE REVIEW
Upon completion of probation, each employee shall be reviewed annually; said review to be objective, constructive in nature designed to point out area of strengths, weakness and methods for improvement. The review will be completed by the employee's immediate supervisor and will include all co-lateral assignments (i.e. FTO, Range Master, PIO, etc.).

Any modification to the evaluation form will be submitted to the Police Officers Association for review and comments.

ARTICLE 36 — DISCIPLINARY ACTIONS
A. For the purpose of defining disciplinary actions, the following definitions shall be applicable:

1. Disciplinary actions are defined as:
a. Dismissal
b. Demotion
c. Suspension
d. Reductions in pay
e. Reprimand (written)

2. Reductions in pay are governed by the "Blue Section" of the Police Manual.

3. Appeals from the disciplinary actions shall only be subject to the "Blue" section of the Police Manual entitled "Rules and Regulations."

4. Prior to the commencement of any internal investigation that is likely to subject the officer to disciplinary action, the officer shall be advised of their rights pursuant to Section 3300, et. seq., of the California Government Code as amended. All rights contained therein shall be applicable to the disciplinary actions and shall be used as a minimum guideline only.

5. Any reprimand record or other writing containing adverse comments included in the employee’s personnel package is a written reprimand. Adverse comments or documents placed into the Evaluation Log (also referred to as the “Red File”) are not written reprimands. Evaluation log entries may be appealed to the Chief of Police pursuant to procedure set forth in the Police Policy and Procedures Manual.
386
22 6. Inclusionary periods as currently set forth in the Police Department Rules and Regulations shall remain in effect during this MOU.

7. Any officer receiving time off dispensed as a result of disciplinary action can use either accumulated compensatory time or vacation time at their discretion.

However, when exceptional circumstances arise and the City feels that it is in the best interest to keep an officer off duty for a limited period of time (not to exceed five (5) working days), the City may exercise this right.

8. For purposes of this section, a "suspension day" imposed as a result of disciplinary action or "workday" referred to in Section 7 is equivalent to eight (8) hours.

ARTICLE 37 — LAYOFF
A. Hermosa Beach Municipal Code Section 2.76.200, as currently enacted, is the governing provision regarding layoff. However, City further agrees that, prior to implementation of any such layoff, discussions shall be held to explore other alternatives, mitigation, etc.

B. It is further agreed that in the event the City should contract with another agency for provision of police services, the Association shall receive six (6) months advance written notice prior to the effective date of any such change.

ARTICLE 38 — ASSOCIATION DIRECTORS TIME
A maximum of two Board members shall be allowed to attend out of town meetings on City time up to and including a cumulative total of five (5) working days per calendar year provided such out of town meetings are for purposes of Association business and does not conflict with the operational needs of the department. With the permission of the Police Chief additional days may be granted.

ARTICLE 39 — CITY/POA DISCUSSION OPPORTUNITY
During the term of this MOU, the parties agree to informally discuss matters of mutual concern, including scheduling and other ways to maximize the allocation of resources.

Said discussions shall only result in changes in terms and conditions of employment upon mutual agreement of the parties.

ARTICLE 40 — REOPENER CLAUSE FOR ARTICLE 10 AND EXHIBIT A TO

THE MOU
The City has notified the Association of its intent to place a measure on the November 8, 2022 ballot to repeal Ordinance No. N.S.211 pertaining to the City’s Civil Service Rules, Chapter 2.76 of the Hermosa Beach Municipal Code. The parties agree that during the term of this MOU, if requested by the City, Article 10 and Exhibit A of this MOU shall be reopened for the purpose of meeting and conferring regarding proposed revisions of Chapter 2.76, Title 2 Administration and Personnel, of the City of Hermosa Beach Municipal Code and related modifications to Article 10 and Exhibit A of the MOU. 387
23 ARTICLE 41 — DURATION OF CONTRACT
This MOU is effective July 1, 2022 and shall remain in full force and effect through June 30, 2025.

In witness whereof, the parties hereto have caused their duly authorized representatives to execute this Memorandum of Understanding this _____ day of ___________, 2022.

HERMOSA BEACH POLICE OFFICERS’

ASSOCIATION

CITY OF HERMOSA BEACH
________________________________
David Brock, HBPOA Chief Negotiator
________________________________
Eric Cahalan, Police Sergeant
________________________________
Brent Zuber, Police Officer
________________________________
Luis Pineda, Police Officer
___________________________________
Daphne Anneet, City Negotiator
___________________________________
Viki Copeland, Finance Director
___________________________________
Vanessa Godinez, Human Resources
Manager
________________________________
Mick Gaglia, Police Sergeant
___________________________________
Angela Crespi, Deputy City Manager
388
A-1
Exhibit A

GRIEVANCE PROCEDURES
FOR

HERMOSA BEACH POLICE DEPARTMENT
I. Purpose of Grievance Procedures
a. To promote improved employee-employer relations by establishing grievance procedures on matters.
b. To provide that grievances shall be heard and settled as informally as possible.
c. To enable grievances to be settled promptly and/or as near to the point of origin as possible.

II. Definition
A grievance is defined as any dispute concerning the, interpretation, intent or application of the written Memorandum of Understanding or departmental rules and regulations governing personnel practices or working conditions applicable to employees covered by the Memorandum of Understanding. An impasse in meeting and conferring upon the terms of a proposed Memorandum of Understanding is not a grievance.

III. Conduct of Grievance Procedure
a. An employee may request the assistance of another person of his own choosing in preparing and presenting of his grievance at any level of review, or may be represented by a recognized employee organization, or may represent himself.
b. The employee and his representative, if any, may use a reasonable amount of work time, as determined by the appropriate Division Commander, and a Police Association Board Representative, in conferring about and presenting a grievance.
c. Any grievance relating to the retroactive status of monetary or fiscal matters shall be limited to the date of filing of the grievance in writing, except in such cases where it would be impossible for the employee to have prior knowledge of an accounting error, or where the error is departmentally or City caused. d. The time limits specified may be extended to a definite date by mutual agreement of the employee and the reviewer concerned.
e. Employees shall be free from reprisal for using the grievance procedure. 389
A-2
IV. Matters Subject to Grievance Procedure
Full-time employees having probationary or permanent status may process a personal grievance on one, or more than one, of the following grounds. a. Improper application of rules, regulations and procedures. b. Unfair treatment, including coercion, restraint, or reprisal. c. Reduction in force action — layoffs.
d. Promotion procedures implemented unfairly.
e. Classification of position.
f. Non-selection for training opportunities.
g. Discrimination because of race, religion, color, creed, or national origin. h. Any matter affecting an employee's work schedule, fringe benefits, holidays, vacation, sick leave, retirement, performance, rating, a change in classification, salary, work assignment, or any other matter affecting wages, hours or working conditions.
i. Discharge, demotion, or suspension.
j. Individual disputes over the intents or application of the provisions of the most recent officially signed agreement between the City and their recognized employee representatives.

Probationary employees may file grievances under all of the above, but not as applied to their performance rating or dismissal,
V. Grievance Procedure
Step One — Informal Process
An employee must attempt first to resolve a grievance through discussion with his immediate supervisor without undue delay on an informal basis. If, after such discussion, the employee does not believe the problem has been satisfactorily resolved, he shall have the right and obligation to discuss it with his supervisor's immediate superior, if any, and his department head if necessary. Every effort shall be made to find an acceptable solution by these informal means at the most immediate level of supervision. At no time may the informal process go beyond the department head concerned. In order that this informal procedure may be responsive, all parties involved shall expedite this process. In no case may more than fifteen (15) calendar days elapse from the date of the alleged incident or action and the resolutions of the grievance or completion of the informal process. Said grievance shall be considered waived if not so presented to the immediate supervisor within fifteen (15) calendar days following the day during which the event upon which the grievance is based occurred.
390
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Step Two — Formal Process — Management Supervisor
If the grievance is not resolved through the informal process, the employee shall have the right within ten (10) working days from the decision or completion of the informal process to file the grievance in writing on a specified form and present it to his Division Commander. The Division Commander shall discuss the grievance with the employee and shall render a decision and comments in writing and return them to the employee within ten (10) working days after receiving the grievance. Failure of the grievant to serve such written notice ten (10) calendar days following the termination of the informal step shall constitute a waiver of the grievance.

Step Three — Formal Process — Department Head
If the grievance procedure is not resolved at Step 2 and the employee is notified in writing, the employee may, within the next five (5) working days present the grievance in writing to the department head. In the event that no written response is given to the employee within ten (10) working days from the date of submission of the written grievance, the grievance will be assumed to have been valid and the employer will take steps to correct that problem. Failure of the employee to take appropriate action within the prescribed time periods will be deemed to constitute termination of the grievance. Failure of the employer to respond within the time provided will be deemed to be an admission as to the validity of the grievance and will require affirmative action to correct the grievance. The department head shall render his decision and comments in writing within five (5) working days from the date of receipt of the grievance and return them to the employee within that time.

Step Four — Advisory Arbitration
a. If the grievance is not resolved in Step 3 the employee may within five (5) working days, present the grievance in writing to the City Manager or his designate for processing. Failure of the employee to take this action within five (5) working days from the date of receipt of rejection of the grievance in Step 3 will be deemed to constitute a termination of the grievance. b. The scope of the advisory arbitration of grievance shall include all of the grievable matters as set forth in Section 4 of this procedure. An exception would be those matters that by Peoples Ordinance NS 211 must be adjudicated by the Hermosa Beach Civil Service Commission. All other grievances shall bypass Step 4 of the grievance procedure and go to the Step 5 procedures. An employee who chooses advisory arbitration shall be deemed to have made a choice between the Civil Service Board of Review and arbitration and, therefore, may not seek two hearings on the same grievance. c. As soon as possible, and in any event not later than ten (10) work days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator unless external constraints prohibit compliance, whereupon the earliest date available shall apply. d. Arbitrator shall be selected from a list of seven (7) arbitrators provided by the Federal Mediation and Conciliation Service within two (2) working days. If a mutual agreement cannot be reached at a meeting of the two parties as to selection of an arbitrator, then each party shall strike off a name from the list 391
A-4
on an alternating basis until one name remains which person shall become the arbitrator. The City shall have the first opportunity to strike a name from the list of (7) arbitrators. The priority of striking names shall alternate from one party to the other each time advisory arbitration is invoked by the same parties. e. Any arbitrator appointed must be familiar with employee/management relations in public employment.
f. The arbitrator shall hold such hearings and conduct such proceedings as may be necessary, but such hearings and proceedings shall be conducted in an expeditious and confidential manner with the involved parties only. Employees called as witnesses shall be released from duty as needed. g. The rules of conduct of proceedings shall be according to those procedures utilized by the Arbitration Service.
h. The findings of fact and the recommendations of the arbitrator shall be transmitted to the involved parties and the City Administrator. i. The fees and expenses, including the making of the record of the arbitrator, shall be borne equally by the parties. Calling of the witnesses by either party shall be done with a reasonable amount of restraint. An excessive use of witnesses will necessitate the cost of loss of work time to be paid by the party calling the witnesses. A decision of the arbitrator may be requested by either party as to whether there may have been an excessive use of witnesses. j. The arbitrator shall have no power to alter, amend, change, add to, or subtract from any of the terms of the Memorandum of Understanding. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other. k. The decision of the arbitrator shall be final upon the parties to the dispute unless either party, within 60 days after the final written decision of the arbitrator is personally served upon the party, causes to be filed in a court of competent jurisdiction a complaint to review all or any part of the proceeding, upon litigation, the entire matter shall be reviewed and a trial de novo held.

Step Five — Final Process (Non-arbitral matters) — City Manager If the grievance cannot be resolved at Step 3, the employee may thereafter submit the matter to the City Manager or his properly appointed representative for the purposes of obtaining his review and settlement of the grievance. Thereafter the City Manager or his designated representative shall, in all non-arbitrable cases, review the matter and render a decision in writing to the parties within fifteen (15) calendar days from the date of receipt.
392
B-1
Exhibit B

CITY OF HERMOSA BEACH

POLICE DEPARTMENT DRUG AND ALCOHOL ABUSE POLICY
I. Purpose
The City of Hermosa Beach recognizes that behavior resulting from and consisting of the use of alcohol and other drugs detrimentally affects work performance, safety, security, and public confidence in City employees and presents a risk to City employees and the health and welfare of the citizens of the City of Hermosa Beach.

The special nature of the duties entrusted in public safety officers demands that the use of alcohol and other drugs, which may affect an employee's ability to perform his or her job, be strictly regulated.

II. Policy
It is the policy of the City of Hermosa Beach that employees shall not be under the influence of alcohol or drugs, nor possess alcohol or drugs while on City property or work locations, while on duty or on an "on-call" status; shall not utilize, sell or provide drugs or alcohol to any other employee or to any person while such employee is on duty or on an "on-call" status, nor have their ability to work impaired as a result of the use of alcohol or drugs.

The City reserves the right to search, without employee consent, all areas and property in which the City maintains control or joint control with the employee, except as restricted by the California Public Safety Officers Procedural Bill of Rights Act.

Refusal to submit immediately to an alcohol and/or drug analysis when requested by a sworn supervisor or manager for the causes for testing listed in this policy may constitute insubordination and may be grounds for discipline up to and including termination.

Employees reasonably suspected to be under the influence of alcohol or drugs shall be prevented from engaging in further work and shall be transported from the work site to a residence or other mutually agreed upon location following testing.

The City provides an Employee Assistance Program (EAP) to assist those employees who voluntarily seek help for alcohol or drug problems. The City and the Association encourage and support the rehabilitation of employees with alcohol and drug abuse problems through the constructive use of the EAP. It is understood that EAP counseling sessions are confidential except for compliance with mandatory EAP referral evaluations and program requirements.

III. Application
This policy applies to all employees in the classifications of Police Officer, Police Sergeant, Police Lieutenant, Police Captain and Chief of Police. This policy applies to alcohol and to 393
B-2
all substances, drugs, medications, legal or illegal, which could impair an employee's ability to effectively and safely perform the functions of the job.

For the purposes of this policy, sworn supervisor and/or manager shall be defined as the classifications of Police Sergeant, Police Lieutenant, Police Captain, and Chief of Police.

IV. Employees Responsibilities
An employee must:
a. Not report to work or be subject to duty while his or her ability to perform job duties is or may be impaired due to on or off duty alcohol or drug use; b. Not possess or use alcohol or impairing drugs (illegal drugs and prescriptions drugs without a prescription) during working hours or while subject to duty, on breaks, during meal periods or at anytime while on duty on City property, with the exception of possession of substances which have been confiscated by arrest and are in transport to designated holding facilities, or incidents which are performed as part of the job and with the approval of the Chief of Police or Division Commander as specified in Section 20.25 and 20.30 of the Department's Rules and Regulations;
c. Submit immediately to an alcohol and drug test when requested by a sworn supervisor or manager acting pursuant to this policy;
d. Provide within 24 hours of request by the Medical Review Officer, a bona fide verification of a current valid prescription for any potentially impairing drug or medication declared by the employee before the drug test and identified when a drug test is positive. The prescription must be in the employee's name. A reasonable extension of time for the employee to provide a valid prescription may be granted by the Medical Review Officer not to exceed an additional 48 hours.

V. Management Responsibilities and Guidelines
a. Sworn supervisors and managers are responsible for reasonable enforcement of this policy.
b. Sworn supervisors and managers may request that an employee submit to a drug and/or alcohol test when any of the "Causes for Testing" items listed in this policy occur.
c. In cases of "reasonable suspicion", any sworn supervisor or manager requesting an employee to submit to a drug and/or alcohol test must document in writing the facts constituting reasonable suspicion that the employee in question is intoxicated or under the influence of drugs and submit said documentation to the Chief of Police prior to the end of the shift.

Prior to the employee being transported for testing, the observable facts constituting reasonable suspicion shall be confirmed by a second supervisor or manager.
394
B-3
d. Any sworn supervisor encountering an employee who refuses an order to submit to a drug and/or alcohol analysis upon request shall remind the employee of the requirements and disciplinary consequences of this policy.

Where there is reasonable suspicion that the employee is under the influence of drugs or alcohol, the employee will be relieved of his/her weapon, which will be secured by the department until the employee is authorized to return to work. The supervisor shall then arrange transportation to the testing facility.
e. Sworn supervisors and managers shall not physically search the person of employees, nor shall they search the personal possession of employees without the freely given consent of, and in the presence of, the employee, or unless a valid search warrant has been obtained.
f. Sworn supervisors and managers shall notify the Chief of Police or designee when they have reasonable suspicion to believe that an employee may have illegal drugs in his or her possession or in personal property which is promptly accessible to the employee during work hours (i.e. a personal vehicle).

VI. Causes for Testing
Employees covered by this policy shall be tested for drugs or alcohol as specified below and whenever there is reasonable suspicion of an employee under the influence on work time.

1. Reasonable suspicion is a belief based on objective facts sufficient to lead a reasonably prudent supervisor to suspect that an employee is under the influence of drugs or alcohol so that the employee's ability to perform the functions of the job is impaired or so that the employee's ability to perform his or her job safely is reduced. These objective facts must be confirmed by a second sworn supervisor or manager. In addition, the supervisor or manager is required to take into account other possible explanations for observed behavior such as illness, lack of sleep, fatigue, and reactions to noxious fumes or smoke. For example, any of the following, alone or in combination, may constitute reasonable suspicion:
a. Slurred or thick speech;
b. Alcohol odor on breath;
c. Inability to perform work properly;
d. Unsteady walking and movement;
e. Erratic and unusual displayed behavior consistent and symptomatic with drug use/abuse;
f. Possession of alcohol or drugs;
g. Nystagmus;

2. Prior to initial appointment with the City of Hermosa Beach.

3. Prior to promotional appointment and during probation. 395
B-4

4. Within 30 days of assignment to the Detective Division.

5. When the employee is involved in a traffic accident while operating a City vehicle and a determination is made that the employee is at fault. If fault cannot be immediately determined at the scene, the involved officer shall submit a urine sample for analysis. However, the sample will not be tested unless the officer is ultimately found most at fault for the collision or if fault cannot be determined. Otherwise, the sample will be destroyed without testing.

VII. Testing Procedure
Whenever a sworn supervisor or manager deems a drug test necessary for reasonable suspicion and the objective observations have been verified by a second person, the supervisor or manager or designee shall transport the employee to the City's medical facility for the test. The employee shall be paid for time spent at the examination. The City shall bear the expense of the examination, and shall provide transportation to and from the medical facility and the employee's work site.

Testing shall occur at the City's designated medical facility. The medical facility shall use a certified National Institute of Drug Abuse (NIDA) laboratory. The certification of laboratories performing drug testing for Federal agencies was developed by NIDA to assure strict adherence to the rigorous standards of testing and custody control form. Test results are returned to the Medical Review Officer (MRO).

The initial test is a process called Urine Drug Screen # 37042N. If all results are negative, the test is complete. If the initial test is positive, a secondary confirming test using the Gas Chromatography/Mass Spectophotometry (GCMS) method is conducted by the laboratory to verify the results. This test has been used as binding legal and medical precedent. If the subsequent test is negative, then the test is considered negative for all purposes. If the subsequent test confirms a positive finding, it is noted on the report and sent to the MRO.

At this point, in cases other than THC and cocaine, the MRO will contact the employee to discuss the possibility that the person has taken medication (prescription or otherwise) that was not indicated on the original form completed by the employee. The employee is not informed of a positive result, he or she is just asked to clarify any drug intake. The employee must provide within 24 hours of a request by the MRO, a bona fide verification of a valid prescription for the drug declared by the employee before the drug test and identified in the drug screen. The prescription must be in the employee's name and dated prior to the date the specimen was collected. A reasonable extension of time for the employee to provide a valid prescription may be granted by the Medical Review Officer not to exceed an additional 48 hours. If the employee does not provide acceptable verification of a valid prescription as determined by the MRO or if the prescription is not in the employee's name, the MRO will report a positive test result. The final results are then sent by the MRO to the City's Personnel Director.

Drugs tested for include, Amphetamines, Barbituates, Benzodiazepines, Cocaine, Methadone, Methaqualone, Opiate, PCP, THC, Propoxyphene, Anabolic Steroids and Alcohol. Cut off levels shall be consistent with the current guidelines issued by NIDA. Each drug screen performed shall include a test for all of the substances identified above. 396
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VIII. Medical Review Officer
The Medical Review Officer (MRO) shall be a licensed physician who has knowledge of substance abuse disorders and has appropriate medical training to interpret and evaluate an individual's positive test result together with his or her medical history and any other relevant biomedical information. The responsibility for the assignment of the appropriate qualified physician and for ensuring his/her availability is that of the City's Personnel Director. The Hermosa Beach Police Officers' Association shall participate in the selection of the Medical Review Officer.

IX. Results of Drug and/or Alcohol Testing
a. A positive result from a drug and/or alcohol analysis may result in appropriate disciplinary action, up to and including discharge, pursuant to the Police Department Rules and Regulations.
b. If an alcohol or drug test is positive for alcohol or drugs, the Personnel Director shall notify the Chief of Police who will initiate a personnel complaint in accordance with the Police Department's Rules and Regulations. c. Specimens shall be considered as positively confirmed following the secondary test using the GC/MS testing method if they fall above the cutoff levels listed in the NIDA guidelines.
d. All negative test specimens shall be destroyed within three (3) days of the negative test result provided to the Personnel Director. Positive test specimens shall be frozen and retained for a minimum of two (2) years.

X. Appeals
If the employee desires to appeal a positive test result, he or she may request a new testing of a remaining portion of the original urine sample, or split sample, within 5 business days of notification of the original test result. The split sample test by Gas Chromatography/Mass Spectophotometry (GC/MS) shall be conducted at the employee's expense and shall be conducted by any National Institute of Drug Abuse approved laboratory. 397
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0604
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 11, 2022
RESOLUTION APPROVING THE 2022-2025 MEMORANDUM OF UNDERSTANDING (MOU)

BETWEEN THE CITY OF HERMOSA BEACH AND THE PROFESSIONAL AND ADMINISTRATIVE

EMPLOYEE GROUP
(Human Resources Manager Vanessa Godinez)
Recommended Action:

Staff recommends City Council adopt a Resolution (Attachment 1) approving the Memorandum of Understanding (MOU) between the City of Hermosa Beach and Professional and Administrative Employee Group (PAE) (Attachment 2) for the 2022-2025 fiscal years.

Executive Summary:

Negotiations for a successor to the Memorandum of Understanding (MOU) between the City and the Professional and Administrative Employee Group have resulted in a tentative agreement. The City and the Hermosa Beach Professional and Administrative Employee Group (PAE) met and conferred in accordance with the Meyers-Milias Brown Act and have reached a tentative agreement on the terms and conditions of employment. The terms of the tentative agreements are summarized below.

The total cost of the negotiated changes is $251,015 for FY 2022-2023.

Background:

The Meyers-Milias Brown Act requires that local public agencies negotiate with its respective bargaining units regarding wages, hours, and working conditions. Agreements with the City’s bargaining units expired at the end of June and, under direction from the City Council, the Council approved City negotiating team has been in negotiations with each of the bargaining units for new terms.

The City’s aim through labor negotiations is to maintain competitive wages, hours, and working conditions in a high-cost geographic labor market in order to retain and attract a high-quality workforce to serve our community across a range of services. Most position classifications in the City are comparable to those in other municipalities. The City contracted with Ralph Anderson & Associates to conduct a total compensation study using eleven “like” cities in the region for labor market comparisons.

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REPORT 22-0604
The City’s negotiating team met and conferred with representatives of the Professional and Administrative Employees to discuss wages, hours, and other terms and conditions of employment contained in the MOU that expired on June 30, 2022. This bargaining unit consists of the following classifications: Accountant; Accounting Manager; Administrative Assistant; Administrative Services Coordinator; Assistant Engineer; Associate Engineer; Deputy City Engineer; City Engineer; Senior Engineer; Public Works Superintendent; Assistant Planner; Associate Planner; Senior Planner; Building and Code Enforcement Official; Finance Cashier Supervisor; Community Services Division Manager; Crime and Intelligence Analyst; Deputy City Clerk; Emergency Management Coordinator; Environmental Program Manager; GIS/IT Analyst; Management Analyst; Senior Management Analyst; Recreation Coordinator; and Senior Recreation Supervisor. The parties have reached a tentative agreement within the authority provided by City Council and on the terms described below.

The membership of PAE met and ratified the terms of the tentative agreement, set forth in the new MOU, hereby submitted to the City Council for approval.

Analysis:

The tentative MOU between the City and the Professional and Administrative Employee Group include the following negotiated terms:

1. Term of the agreement to be July 1, 2022-June 30, 2025;

2. Article 6.A-Wage Rate: The parties agreed to the following salary increases over the next three years.
· Effective July 1, 2022, the salary schedule shall be adjusted to bring all classifications that are below market median as determined by the 2022 Ralph Anderson & Associates Compensation Study and Report to the median identified by the Study and Report. · After the implementation of median adjustments, where applicable, the salary table will be increased by an additional three percent (3%).
· Effective July 1, 2023, the salary schedule for all classifications will be increased by three percent (3%).
· Effective July 1, 2024, the salary schedule for all classifications will be increased by three percent (3%);

3. Article 18.A - Holidays: The parties agreed to add Juneteenth (June 19) and Cesar Chavez Day (March 31) to the list of City observed holidays.

4. Article 14.A - Sick Leave: Effective July 1, 2022, employees shall accrue sick leave at the rate of ten (10) hours per month. After two-hundred (200) hours are accrued, an employee may cash out annually up to a maximum of ninety-six (96) hours;
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5. Article 9 - Merit Pay: The parties agreed to revise the Merit Pay program from quarterly to a biannual program;

6. Article 7 - Deferred Compensation: The parties agreed the City will match employee contributions up to $25.00 per month;

7. Article 20.E - Health and Welfare: Effective, January 1, 2023, the parties agree to increase the City’s maximum monthly premium contribution to medical insurance from $1,786.50 to $1,875.39; and

8. Civil Service Rules: PAE is in agreement with the City’s intent to place a measure on the November 08, 2022 ballot to repeal Ordinance No. N.S. 211 adopted in 1960 pertaining to the City’s Civil Service System as set forth Chapter 2.76 of the Hermosa Beach Municipal Code pertaining to Civil Service. PAE understands that the repeal of the Ordinance is necessary to allow the City to update its personnel rules and civil service rules.

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

Policy:
· 1.2 Strategic planning. Regularly discuss and set priorities at the City Council and management level to prioritize work programs and staffing needs.

Fiscal Impact:

The total cost of the negotiated changes is $251,015 for FY 2022-2023, which would be appropriated from the General Fund’s Unspecified Contingency assigned fund balance of $730,693.

Attachments:

1. Resolution of the City Council of the City of Hermosa Beach, California, Adopting a Memorandum of Understanding with the Professional and Administrative Employee Group.

2. Memorandum of Understanding between the City of Hermosa Beach and the Professional and Administrative Employee Group for July 1, 2022-June 30, 2025.

City of Hermosa Beach Page 3 of 4 Printed on 10/6/2022
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Staff Report
REPORT 22-0604
Respectfully Submitted by: Vanessa Godinez, Human Resources Manager Concur: Angela Crespi, Deputy City 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 10/6/2022
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CITY OF HERMOSA BEACH
RESOLUTION NO. 22-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH,

CALIFORNIA, ADOPTING A MEMORANDUM OF UNDERSTANDING WITH THE PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP.

WHEREAS, employees of the City of Hermosa Beach, California represented by the Professional and Administrative Employee Group, have elected to meet and confer with the City of Hermosa Beach on matters concerning wages, hours, and working conditions; and,
WHEREAS, the above bargaining unit has selected certain individuals to represent them; and,
WHEREAS, Employee and City of Hermosa Beach Chief Labor Negotiator have jointly negotiated changes to the Memorandum of Understanding which has been ratified by a majority vote of the members of the Professional and Administrative Employee Group; and,
WHEREAS, the Employee and City of Hermosa Beach Chief Labor Negotiator have mutually agreed to recommend that the City Council adopt these changes to the Memorandum of Understanding.

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

SECTION 1. The City Council of the City of Hermosa Beach resolves to enter into a Memorandum of Understanding to be effective for the period July 1, 2022 through and including June 30, 2025, and authorizes the City’s Chief Negotiator to sign the Memorandum of Understanding on behalf of the City.

SECTION 2. This resolution takes effect immediately and that the City Clerk shall certify to the passage and adoption of this resolution; shall cause the same to be entered among the original resolutions of said City; and shall make a minute of the passage and adoption thereof in the records of the proceedings of the City Council of said City in the minutes of the meeting at which time same is passed and adopted.
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PASSED, APPROVED and ADOPTED on this 11th day of October, 2022.

Michael Detoy
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Michael Jenkins
City Clerk City Attorney
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MEMORANDUM OF UNDERSTANDING

BETWEEN

CITY OF HERMOSA BEACH
AND

PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
JULY 1, 2022 - JUNE 30, 2025
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TABLE OF CONTENTS

SUBJECT PAGE
ADMINISTRATIVE LEAVE .............................................................................................. 10 AGENCY SHOP ........................................................................................................... 19 BEREAVEMENT LEAVE................................................................................................. 11 CIVIL SERVICE RULES................................................................................................. 19 DEFERRED COMPENSATION........................................................................................... 5 EDUCATIONAL ALLOWANCE ........................................................................................... 8 FAMILY AND MEDICAL CARE LEAVE.............................................................................. 15 FULL UNDERSTANDING, MODIFICATION, WAIVER........................................................... 18 GRIEVANCES/APPEAL OF DISCIPLINE............................................................................ 17 HEALTH AND WELFARE ............................................................................................... 14 HOLIDAYS .................................................................................................................. 12 JURY DUTY ................................................................................................................ 11 LAYOFF ..................................................................................................................... 16 LONG TERM DISABILITY............................................................................................... 15 MANAGEMENT RIGHTS .................................................................................................. 2 MERIT PAY................................................................................................................... 7 MILITARY LEAVE......................................................................................................... 12 NON-DISCRIMINATION ................................................................................................... 4 OVERTIME.................................................................................................................... 9 PREAMBLE ................................................................................................................... 2 PREMIUM PAY .............................................................................................................. 5 PROBATION.................................................................................................................. 4 PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES PURPOSE AND INTENT....................... 19 RECOGNITION .............................................................................................................. 2 REDUCTION IN LIEU OF LAYOFF.................................................................................... 16 RETIREMENT / RETIREE MEDICAL................................................................................. 12 SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL FACILITY……………………17 SHORT-TERM & LONG-TERM DISABILITY ...................................................................... 15 SICK LEAVE ............................................................................................................... 10 TEMPORARY UPGRADE PAY ........................................................................................ 18 TERM OF AGREEMENT................................................................................................. 20 UNIFORMS ................................................................................................................... 8 VACATION .................................................................................................................... 9 WAGE RATE................................................................................................................. 4 405
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MEMORANDUM OF UNDERSTANDING

FOR THE

PROFESSIONAL AND ADMINISTRATIVE EMPLOYEE GROUP
ARTICLE 1 – PREAMBLE
The provisions of this Agreement have been developed in the interest of promoting and improving Employee relations between the City of Hermosa Beach, California and the Professional and Administrative Employees who are represented by the Hermosa Beach Professional and Administrative Employees (P&AE).

ARTICLE 2 – RECOGNITION
The City recognizes the P&AE as the exclusive bargaining representative for all Employees who are or become employed in those job classifications contained on Exhibit "A”, which is attached hereto and made a part of this Agreement. The parties recognize that this Agreement contains wages, benefits and working conditions that pertain only to members of the P&AE.

ARTICLE 3 – MANAGEMENT RIGHTS
A. It is agreed that during the term of this Agreement herein the exercise of the following powers, rights, authority, duties and responsibilities by the City, the adoption of policies, rules, regulations and practices in furtherance thereof, and the use of judgment and the discretion in connection therewith, shall be limited only by the specific and express terms of this Memorandum of Understanding, City Personnel Ordinance, Personnel Rules and Regulations, and other statutory law.

B. Except in emergencies, or where the City is required to make changes in its operations because of the requirements of law, whenever the exercise of management’s rights shall impact on Employees of the bargaining unit, the City agrees to meet and confer with representatives of the P&AE, regarding the impact of the exercise of such rights unless the matter of the exercise of such rights is provided for in this Memorandum of Understanding.

C. MANAGEMENT RIGHTS

1. Manage the City.

2. Schedule working hours.

3. Establish, modify or change work schedules or standards.

4. Institute changes in procedures.
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5. Direct the work force, including the right to hire, promote, demote, transfer, suspend, discipline or discharge any Employee.

6. Determine the location of any new facilities, building, departments, divisions, or subdivisions thereof, and the relocation, sale, leasing or closing of facilities, departments, divisions, or subdivisions thereof.

7. Determine services to be rendered.

8. Determine the layout of buildings and equipment and materials to be used herein.

9. Determine processes, techniques, methods and means of performing services.

10. Determine the size, character and use of inventories.

11. Determine the financial policy including accounting procedures.

12. Determine the administrative organization of the system.

13. Determine selection, promotion, or transfer of Employees.

14. Determine the size and characteristics of the work force.

15. Determine the allocation and assignment of work to Employees.

16. Determine policy affecting the selection of new Employees.

17. Determine the establishment of quality and quantity standards and the judgment of quality and quantity of work required.

18. Determine administration of discipline.

19. Determine control and use of City property, materials and equipment.

20. Schedule work periods and determine the number and duration of work periods

21. Establish, modify, eliminate or enforce rules and regulations.

22. Place work with outside firms.

23. Determine the kinds and numbers of personnel necessary.

24. Determine the methods and means by which operations are to be conducted.

25. Require Employees, where necessary, to take in-service training courses during working hours.
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26. Determine duties to be included in any job classifications.

27. Determine the necessity of overtime and the amount of overtime required.

28. Take any and all necessary action to carry out the mission of the City in cases of an emergency.

ARTICLE 4 – NON-DISCRIMINATION
Both parties to this Agreement agree not to discriminate against any Employee or applicant because of age, gender, race, national origin, religion, color, ancestry, marital status, sexual orientation, physical or mental disability, medical condition, and/or Association membership or activity. Additionally, the City expects and requires all Employees to treat one another with dignity and respect. Harassment of fellow Employees is a violation of law. No employment decision may be made based upon an Employee’s submission to or rejection of such conduct. It is the responsibility of any Employee who believes that they are the victim of such harassment, whether sexual, racial, ethnic or religious, to report the conduct to the supervisor, Department Director, Human Resources Director/Manager or the City Manager in a timely manner.

ARTICLE 5 – PROBATION
There shall be a one (1) year probationary period for all appointments to the Professional and Administrative classes as described in this Resolution. The probationary period may be extended for a period of not more than six (6) months. Employees shall receive notification of an extension seven (7) calendar days prior to the one year anniversary of the probationary period.

ARTICLE 6 – WAGE RATE
The City agrees to hire and appropriately compensate capable Professional and Administrative Employees. They will be professional, be adequately trained, and meet standards required for such positions. The Council reaffirms that compensation will include such items as salary, contribution for PERS, deferred compensation, health insurance and merit pay.

A. The salary table attached to the MOU as Exhibit A shall be revised by increasing each amount as follows:
 Effective July 1, 2022, the salary table shall be adjusted to bring all bargaining unit positions that are below market median as determined by the 2022 Ralph Anderson & Associates Compensation Study and Report to the median identified by the Study and Report. The retroactive adjustment will be made for employees who are currently employed with the City as of the date the City Council approves the Agreement.
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 Effective July 1, 2022 and after the implementation of median adjustments, where applicable, the salary table for all classifications will be increased by an additional three percent (3%).
 Effective July 1, 2023, the salary table for all classifications shall be increased by three percent (3.0%).

Effective July 1, 2024, the salary table for all classifications shall be increased by three percent (3.0%).

B. The parties understand that these amounts shall be reported to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable.”
C. Performance based step increase is dependent upon employee receiving an overall performance evaluation of being fully qualified.

ARTICLE 7 – DEFERRED COMPENSATION
Each Employee, individually, may elect to participate in the Deferred Compensation Plans established and adopted by the City of Hermosa Beach.

Effective the first pay period after ratification and Council approval of this MOU, the City shall match the employee’s contribution up a maximum of twenty-five dollars ($25) per month.

ARTICLE 8 – PREMIUM PAY
A. Bilingual Skill Premium

1. The City agrees to pay a 5% premium above base salary per month to full time Employees, not to exceed five (5) in number, who have demonstrated proficiency/fluency in a second language which has been demonstrated to be of value to the City in providing customer service.

2. An Employee receiving bilingual skill premium will be called upon to assist in any department within the City on an “as needed basis” to provide interpretation services. Individuals receiving a bilingual skill premium may periodically be subject to call-out or be required to work in excess of their regular schedule. In the event of call-out or overtime, compensation shall be in accordance with the appropriate provisions of this Agreement.

3. Employees with bilingual ability will be tested for oral skill in the designated language by the Human Resources Director/Manager. Applicants must successfully pass the examination to be eligible for bilingual premium.

Periodic evaluation of incumbents receiving bilingual skill premium may be required.
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4. Should there be more than five (5) applicants for bilingual premium, the City reserves the right to select the applicant who best meets the needs of the City.

Factors to be considered in selection include, but are not limited to: proficiency in both speaking and writing designated language as well as the ability to provide multiple shift coverage.

5. This premium pay applies to more than one labor group, therefore, the total number of five (5) full-time employees is city-wide, not per labor group.

B. Special Event Supervision Premium (Not reportable to PERS)

1. Any Recreation Supervisor assigned responsibility for coordination of resources, emergency response, oversight, and on-call availability for largescale commercial special events scheduled during other than regularly scheduled work hours may receive a three hundred dollar ($300) per event day premium. Should it be determined that this classification is not exempt from FLSA overtime, then this section would be deleted. This amount shall not be reported to PERS as compensation and is thus not “PERSable.”

2. Any individual so assigned by the Community Resources Manager may receive said premium lieu of any accrual of Administrative Time. In no case shall an Employee receive Administrative Time and premium concurrently, but will receive one or the other. Administrative Time may only be accrued in lieu of premium with prior approval of the Community Resources Manager.

3. The City agrees that individuals in classifications other than Recreation Supervisor may be assigned the responsibilities described above if they are designated as qualified by the Community Resources Manager.

4. No more than one individual per event day shall be eligible to be assigned as Special Event Supervisor and receive this pay.

C. Public Works Superintendent Premium Pay (Not reportable to PERS)

1. An Employee classified as the Public Works Superintendent shall be eligible to receive a ten percent (10%) monthly premium above salary base for duties performed in maintaining an emergency “call out” program for the Public Works Department. The duties shall include responding to emergency after hour’s calls from Police Dispatch or other appropriate Department, and coordinating work crews to respond to the emergency.

2. This premium is compensation for all nonscheduled after hours duties. This amount shall not be reported to PERS as employee compensation and is thus not “PERSable.”
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D. Planning Division Manager Premium Pay (Not reportable to PERS)

1. An Employee classified as Senior Planner may be eligible for Planning Division Manager Premium Pay in an amount up to 10% above base salary as determined by the Community Development Director and approved by the City Manager.

2. To be eligible for Division Manager Premium Pay, the Senior Planner must demonstrate continuing superior performance for at least one year in managing the Planning Division of the Community Development Department, and possess at least 5 years of experience either in the City or in another jurisdiction in a similar role.

3. Division Manager responsibilities include, but are not limited to: supervision of professional and clerical staff; completion of special and ongoing projects as assigned related to long-range planning, policy development, and sustainability programs; management of all current planning functions; preparation and presentation of Planning Commission, City Council and other task force/committee reports; preparation and monitoring of the division’s budget; training, and evaluation of personnel; management of consultant contracts, and, review of projects for conformance with zoning ordinance and municipal code standards.

4. Eligibility for Division Manager Premium Pay may be rescinded (or reduced) by the Community Development Director for failure to perform Division Manager Duties and responsibilities in a superior manner.

E. Individuals covered by this Agreement in the classification of Assistant Engineer or Associate Engineer shall receive a 10% premium for Professional Engineer certification.

ARTICLE 9 – MERIT PAY (Reportable to PERS)
The following P&AE Employees will be eligible to receive Merit Pay for superior performance: Associate Engineer, Assistant Engineer, City Engineer, Senior Engineer, Building & Code Enforcement Official, Associate Planner, Assistant Planner, Public Works Superintendent, Finance Cashier Supervisor, Senior Recreation Supervisor, Senior Planner, Management Analyst, GIS & IT Analyst, , Community Services Division Manager, , Accounting Manager, Accountant, Environmental Program Manager, -, Deputy City Engineer, Recreation Coordinator, Senior Management Analyst. Said bonus pay will be up to a maximum of +5% of base monthly pay payable for six-month (bi-annual) increments. The two bi-annual periods are July 1 – December 31 and January 1 – June 30.

In order for an employee to receive Merit Pay, the Department Director and employee shall agree to specific goals to achieve for each bi-annual period. At the end of the reporting period, the employee shall provide a detailed outline of the goals that have 411
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been met. Based on this documentation, the Director shall determine if the employee is eligible for the Merit Pay, either in full (5%) or a lesser amount. Achieving any of the goals equates to performance over and above standard performance and is recognized as superior performance as it relates to these goals. The Bonus Pay will be included in the pay period following the period that is being evaluated provided that the detailed outline of goals met is received in a timely manner. The parties understand that bonus pay in these amounts is reportable to the California Public Employees Retirement System (CalPERS) as employee compensation and thus be “PERSable” to the extent permissible by law.
5% Superior Performance Bonus (employee met nearly 100% of the goals) 4% Superior Performance Bonus (employee met at least 80% of the goals) 3% Superior Performance Bonus (employee met at least 60% of the goals) 2% Superior Performance Bonus (employee met at least 40% of the goals) 1% Superior Performance Bonus (employee met at least 20% of the goals) For salary comparison purposes, base salary shall be increased by 3.75% (75% of maximum Bonus Pay) to adjust for Bonus Pay eligibility for those classes eligible.

ARTICLE 10 – EDUCATIONAL ALLOWANCE
A. City agrees that P&AE Employees who desire to enroll in training and/or academic courses at a State of California approved and/or recognized college or university that may provide the Employee with general or specific skills and/or knowledge that contributes to their ability to perform their current position or enhances promotional opportunities shall have their course fees, books and tuition for any CSU campus (employees who attend a non-CSU campus will receive up to the average of CSULB, CSUDH & CSULA) rates paid by the City in advance, subject to approval of the City Manager The Employee will reimburse the City for all expenses incurred for any class or classes the Employee fails or does not complete; or if the Employee voluntarily leaves City employment during the period they are enrolled and received payment.

B. Reimbursement of tuition shall be on a pro-rated basis depending upon the number of hours an Employee covered by this Agreement is normally scheduled to work (i.e. full time @ 100% reimbursement, half time @ 50% reimbursement, etc.).

ARTICLE 11 – UNIFORMS
Uniforms will be provided to the Public Works Superintendent as approved by the Department Director.
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ARTICLE 12 – VACATION
A. It is agreed that all Employees covered by this Agreement shall accrue vacation as follows:

Years of Service Accrued Per Year
* Probation Period 1st Year 80 hours
Commencing with 2nd Year 80 hours
“ “ 4th Year 96 hours
“ “ 6th Year 112 hours
“ “ 10th Year 128 hours
“ “ 14th Year 144 hours
“ “ 18th Year 160 hours
B. Employees may request (subject to Department Director’s approval) one (1) week of vacation six (6) months after hire date (after halfway point of probationary period).

C. Vacation may be accrued up to thirty (30) month accrual level, with an automatic cash-out of hours in excess of that amount. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.

D. Employees shall be reimbursed for 100% unused vacation days accrued upon resignation, retirement or imposed termination from their employment with the City.

ARTICLE 13 – OVERTIME
A. For FLSA purposes a "WORK-WEEK" shall be defined as:

1. For employees working a 5/40 or 4/40 schedule: commencing at 0001 hrs. SUNDAY and terminating at 2400 hrs. SATURDAY.

2. For employees working a 9/80 schedule: commencing 1101 hrs. Friday and terminating the following Friday at 1100 hrs.

B. The City agrees to pay association members in the following classifications time and one-half (1-1/2) their regular rate of pay for all hours worked in excess of forty (40) hours worked in a work week. Overtime may be paid in either cash or compensatory time earned as part of the regular payroll process. The City will pay overtime to employees in eligible classifications in the same manner as paid to the General & Supervisory Employees Association.

Employees may elect to cash-in accrued compensatory time quarterly each calendar year in January, April, July, and October.

Classifications eligible for overtime compensation in accordance with the FLSA include:

Administrative Assistant
Deputy City Clerk
Administrative Services Coordinator
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Crime & Intelligence Analyst
Emergency Management Coordinator
C. The following classifications have been determined to be exempt from overtime as defined in the Fair Labor Standards Act (FLSA) and as FLSA applies to public agency employees. As such, these classifications shall not be eligible to accrue compensatory time or be paid overtime.

Accountant
Accounting Manager
Associate Engineer
Associate Planner
Assistant Engineer
Assistant Planner
Building and Code Enforcement Official
City Engineer
Community Services Division Manager
Finance Cashier Supervisor
Deputy City Engineer
Environmental Program Manager
GIS & IT Analyst
Management Analyst
Senior Management Analyst
Public Works Superintendent
Recreation Coordinator
Senior Engineer
Senior Planner
Senior Recreation Supervisor
D. Administrative Leave: Employees in exempt classifications listed above shall receive seventy (70) hours of additional Administrative Leave each calendar year in addition to flex time for extraordinary assignments, fixed holidays, vacation, and Bereavement Leave. Administrative Leave does not accumulate or carry over; it must be used each year. Said leave shall have no monetary value and shall be prorated for partial years’ service upon initial appointment.

ARTICLE 14 – SICK LEAVE
A. Effective July 1, 2022, employees shall accrue sick leave at the rate of ten (10) hours per month. After 200 hours are accrued, a unit member may cash out annually up to a maximum of 96 hours at the employee’s regular rate of pay at 100% rate. In lieu of cash out, Employees may convert up to a maximum of 96 hours to vacation time annually 100% of their sick time, in excess of two hundred (200) hours, to vacation time provided that the vacation bank does not exceed allowed maximum level. The cash outs will take place based on the accrual balance of November 16th and paid on the check of December 5th.
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B. Sick leave shall be used only in case of sickness or disability of the Employee or for family sick leave. Misuse of sick leave shall be grounds for disciplinary action.

C. In case of serious illness of a member of the immediate family, the Employee may utilize sick leave. Immediate family for the purpose of this Section shall be defined as: spouse, child, stepchild, parent, stepparent, parent-in-law, brother, sister, grandparents, grandchildren, any relative not previously listed who lives in the same household as the Employee, and a domestic partner of the Employee.

D. Any Employee claiming a domestic partner, for purposes of this Agreement shall complete a confidential affidavit to be filed in the Human Resources Department, which shall be signed by the Employee only, declaring the existence of a domestic partnership with a named domestic partner. By extending to a domestic partner Employee the specific benefits defined by this Agreement, the City does not intend to confer or imply any other unspecified benefits to such Employee, or to any other person who may hold the status of domestic partner.

E. Employees covered by this Agreement may, at any time or upon resignation or retirement from their employment with the City, elect to be paid for unused sick leave accrued prior to June 30, 2017, at their current rate of pay. Sick leave accrued prior to June 30, 2017 shall be eligible for 100% cash-out at resignation or retirement.

Except as provided in A above, unused sick leave accrued after June 30, 2017, shall not be cashed out. Pursuant to Government Code § 20965, related CalPERS, rules and the City’s contract with CalPERS, upon retirement from City employment, a unit member’s unused accumulated sick leave at the time of retirement may be converted to additional service credit.

F. Employees shall be eligible to use sick leave during their probationary period.

ARTICLE 15 – BEREAVEMENT LEAVE
Each Employee covered by this Agreement shall receive a maximum of three (3) shifts per calendar year to be utilized for Bereavement Leave because of a death in their immediate family (as defined in Article 14 above). For the purposes of bereavement leave, parent inlaw, step-children and parents, and persons living within the same household are to be considered in the definition of “immediate family”. Said time will not be cumulative from one twelve month period to another nor will pay in lieu of unused leave be provided. The Department Director shall, if possible, grant approval of two (2) additional shifts in the event of a death that requires extended travel.

ARTICLE 16 – JURY DUTY
If called for jury duty in a Municipal, Superior, or Federal Court, or for a Coroner’s Jury, Employees covered by this Agreement shall remain in their regular pay status. All jury fees except mileage reimbursement shall be returned to the City. 415
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ARTICLE 17 – MILITARY LEAVE
All Employees covered by this Agreement shall be entitled to Military Leave as afforded by Federal and State law but shall not receive any base salary pay while on such Leave.

ARTICLE 18 – HOLIDAYS
A. All Employees covered by this Agreement shall receive 110 hours per year for the following holidays off with pay: New Year’s Day; Martin Luther King, Jr.’s Birthday; President’s Day; Cesar Chavez Day; Memorial Day; Juneteenth; Independence Day; Labor Day; Veterans Day; Thanksgiving Day; Christmas Day.

B. When a holiday falls on a normal day off, Employees shall receive Holiday Compensation Time. Employees covered by this Agreement may accrue up to 100 hours of Holiday Compensation Time for those holidays in which compensatory time is earned. The City will provide a holiday schedule to the Association for review prior to January 1 of each year. For all holidays that fall on a Friday or Saturday, City Hall offices will be open regular hours on Monday and employees will receive compensatory time. For all holidays that fall on a Sunday, the holiday will be observed on Monday.

C. All employees covered by this Agreement, will receive ten (10) hours of Holiday Flex Time for the following purpose: these ten hours can only be used for either Christmas Eve (December 24th) or New Year’s Eve (December 31st). The hours may also be split into two days, using 5 hours each day (applies to Christmas Eve and New Years’ Eve only). Taking into consideration the employee’s preference, Department Directors will coordinate such leave to ensure there is adequate coverage for the department. Police and Fire Department employees who are required to work those two dates have until January 31
st to use the ten (10) hours. The hours cannot be
cashed-in and cannot be carried over from January 31st.

ARTICLE 19 – RETIREMENT/RETIREE MEDICAL
A. Tier I. The City provides the PERS 2% at 55 Plan with one year final compensation to employees hired prior to July 1, 2011. The City will pay the employee’s 7% contribution to PERS. The City shall report to P.E.R.S. the value of the 7% employer paid member contribution (EPMC) pursuant to the authority of Government Code section 20023(c)(4).

Tier II. For new employees hired on or after July 1, 2011 and ending December 31, 2012, the PERS retirement benefit formula shall be the 2% @ 60 plan, with retirement benefits calculated on one year final compensation. The City paid the employee’s 7% contribution to PERS. Prior to January 1, 2013, the City reported to P.E.R.S. the value of the 7% employer paid member contribution (EPMC) pursuant to the authority 416
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of Government Code section 20023(c)(4) and did not reopen this issue prior to the 2012-2013 negotiations.

B. Member contribution: Each employee in the bargaining unit shall pay the full seven percent (7%) PERS member contribution by payroll deduction as follow:

1. Effective January 1, 2013, by 2.5%

2. Effective July 1, 2013, an additional 2.5% for a total of 5%.

3. Effective July 1, 2014, an additional 2% for a total of 7%.

4. The City adopted the necessary resolution so that such payments made by the employees may be excluded from taxable income pursuant to section 414(h)(2) of the U.S. Internal Revenue Code.

C. Tier III. Employees hired on or after January 1, 2013, shall be subject to the Public Employee Pension Reform Act, (“PEPRA”; Assembly Bill 340) including but not limited to:

1. 2% at 62 retirement formula for those who are “new members” as that term is defined in AB 340.

2. Such new members shall pay to PERS by payroll deduction 50% of the “normal cost” as defined in AB 340 or the then current contribution rate of similarly situated employees, whichever is greater, as required by new Government Code section 7522.30(c).

D. Employees who retire after July 1, 2006 and were hired before July 1, 2018 shall be eligible, upon service retirement from the City, for a medical premium supplement.

Said supplement shall be in the following amount:

1. The City will contribute 5% of the health insurance premium for each year of service with the City of Hermosa Beach up to the lesser of the single person lowest costing HMO premium or $500 per month. A retiring employee must have completed a minimum of ten (10) years of service with the City of Hermosa Beach and be at least fifty-five (55) years of age to be eligible for this benefit.

2. Said supplement shall commence with the first month following the Employee’s service retirement in which the Employee is responsible for payment of the insurance premium.

3. In order to be eligible for medical supplemental payments, an Employee must either remain on a medical insurance plan offered by the City or provide proof of coverage on a self-procured medical insurance plan.
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4. Retirees who are eligible for a supplement but who are not covered on the City insurance policy are still eligible to receive their supplement. Payments will only be made when the retiree provides proof of coverage of insurance and proof of the amount paid for said coverage. Proof of coverage and the amount paid must be provided to the City within 60 days. The City will not provide retroactive reimbursement for payments not documented within 60 days of payment.

5. Any Retiree receiving a benefit under this section agrees to apply for, and enroll in, any Federal and/or State medical insurance plan (e.g. Medicare, Medicaid) for which they become eligible.

E. Employees who are hired after July 1, 2018 shall be eligible, upon service retirement from the City at age sixty (60) with a minimum of twenty (20) continuous City service, for a medical premium supplement. Said supplement shall be paid as follows:

1. The City shall pay a $400,00 per month medical supplement that shall commence with the first month following the Employee’s service retirement in which the Employee is responsible for payment of the insurance premium.

2. The City’s payments will end with the month in which the employee reached the eligibility of State of Federal Medicaid, currently 65 years of age.

ARTICLE 20 – HEALTH AND WELFARE
A. The City will have full responsibility for all Health and Welfare programs enacted or in force as of September 1, 1997.

B. The City shall make available for employees the following insurance plans: Health, Dental, Long Term Disability, Vision and Psychological Health. Current Health, Dental, Long Term Disability, Vision, Psychological Health, or their equivalent, to remain in force during the term of this Agreement. City shall meet and confer with the bargaining unit should there be a change in providers or a change in benefit level.

C. For life insurance, the City shall provide and pay the premiums for a Life Insurance policy for each Employee, payable in an amount equal to the individual’s annual salary upon such Employee’s death.

D. For long term disability insurance, the City will provide and pay the premiums for Long Term Disability for each employee.

E. For medical/health insurance, for the benefit years beginning January 1, 2023 and later, the City’s maximum contribution toward medical insurance for each employee’s selected plan and level of coverage will be $1,875.39. Employees choosing a medical insurance plan and/or coverage level with a monthly premium 418
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that exceeds the City’s maximum contribution shall pay the difference by payroll deduction.

F. An employee who demonstrates proof of medical insurance coverage available through a spouse or domestic partner may receive a cash payment of $750.00 per month in lieu of City provided coverage.

G. For dental insurance, the City shall pay the monthly premium contribution for full family coverage for dental insurance, including PPO.

H. For psychological health, the City will continue to pay for the benefit.

I. The full cost of the Vision Insurance shall be borne by the employee.

J. The City and P&AE mutually recognize the need to maintain existing health insurance cost-containment measures and to continue to control health insurance costs.

Toward that end, the City and P&AE agree to establish an “Insurance Review” committee that shall meet prior to each benefit renewal year to evaluate and recommend renewal coverage.

ARTICLE 21 – SHORT & LONG TERM DISABILITY
A. The City’s Short Term Disability Insurance Plan begins after a 7-day waiting period.

The maximum benefit is 66 2/3% of your earnings to a maximum of $1,125 per week.

The City’s Long Term Disability Insurance Plan, has a maximum benefit of $4,500 per month and begins after 90 days. An Employee utilizing the Short- or Long-Term Disability Plan shall not accrue Vacation, Sick Leave, Holiday Pay or allowances after the 30th calendar day after disability.

B. FAMILY AND MEDICAL CARE LEAVE

1. As required by State and Federal law, the City will provide Family and Medical Care Leave for eligible Employees. The following provisions set forth unit members’ rights and obligations with respect to such Leave. Rights and obligations which are not specifically set forth below are set forth in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 ”FMLA”), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (“CFRA”) (Government Code § 12945.2). Unless otherwise provided by this Article, “Leave” under this article shall mean Leave pursuant to the FMLA and CFRA.

2. Eligible Employees are entitled to a total of 12 weeks of Leave during any 12- month period. An Employee’s entitlement to Leave for the birth or placement of a child for adoption or foster care with the Employee expires 12 months after the birth or placement.
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3. The 12-month period for calculating Leave entitlement will be a “rolling period” measured backward from the date Leave is taken and continues with each additional Leave day taken. Thus, whenever a member requests Leave, the City will look back over the previous 12-month period to determine how much Leave has been used in determining how much Leave a member is entitled to.

4. If an Employee uses Leave for any reason permitted under the law, he/she may concurrently utilize all other accrued Leaves in connection with the Leave.

The utilization of other accrued Leaves will run concurrently with the Leave.

5. Employees must fill out the following applicable forms in connection with Leave under this article:
 “Request for Family or Medical Leave”
 “Certification of Physician or Practitioner”
 “Fitness for Duty to Return from Leave”

6. The provision of Article 21 (A) shall apply regarding the accrual of Vacation, Sick, Holiday Pay and allowances with the exception that seniority shall continue to accrue during the period of FMLA leave.

ARTICLE 22 – LAYOFF
A. It is mutually agreed that whenever, in the judgment of the City Council, it becomes necessary to abolish a position in the interest of economy or because the necessity for the position no longer exists, the City Council may abolish any position or employment in the competitive service and the personnel officer shall layoff, demote or transfer Employees thereby affected.

B. The criterion used in determining the order of separation shall be seniority, pursuant to the Municipal Code, Chapter 2.76 – Civil Service.

C. The City will endeavor to provide each affected Employee as much notice as possible, with a minimum thirty (30) day advance notice to each affected Employee.

ARTICLE 23 – REDUCTION IN LIEU OF LAYOFF
It is mutually agreed that an Employee whose position is abolished shall be governed by Municipal code 2.76.200 – Civil Service.
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ARTICLE 24 – SELECTION OF INDUSTRIAL ACCIDENT DOCTOR OR MEDICAL

FACILITY AND CONTINUATION OF HEALTH BENEFITS
A. It is understood that the City will provide medical facilities to be used for industrial accidents or illness. However, in the event an Employee covered by this Agreement wishes to grieve the City’s selection, the City will give due consideration to the facts presented and may select a new facility.

B. An Employee who suffers an injury-on-duty will continue to have payment of the City portion of all Health Insurance premiums paid for a period of seven (7) full months commencing with the month in which the injury occurred.

C. Nothing herein shall prevent an Employee from utilizing their accrued time in lieu of receiving temporary disability payments under the provisions of the Workers’ Compensation laws of the State of California.

ARTICLE 25 – GRIEVANCES/APPEAL OF DISCIPLINE
This Grievance Procedure shall be used to resolve disputes arising from any allegation by Professional and Administrative Employees that the City has violated the terms of this Resolution.

A. The complaint shall be presented in writing to the Department Director. The Director shall have five (5) working days of receipt of the complaint to resolve the issue or respond to it in writing stating the reasons for the failure to resolve it.

B. If not resolved, the complaint shall be presented in writing to the City Manager. The City Manager shall have five (5) working days of receipt of the complaint to resolve the issue or respond to it in writing stating the reasons for the failure to resolve it.

C. If disciplinary actions concerning dismissals, suspensions, reduction in pay, etc. are not resolved, further action is pursuant to Municipal Code, Section 2.76 – Civil Service.

D. Grievances regarding the provisions contained within this memorandum of understanding, with the exception of disciplinary actions, not settled following the City Manager’s determination and that either party desires to contest further, may be submitted to arbitration as provided in this article provided however that said Request for Arbitration shall be made within twenty (20) calendar days of the City Manager’s determination
E. As soon as possible and in any event not later than fourteen (14) calendar days after either party received written notice from the other of the desire to arbitrate, the parties shall agree upon an arbitrator. If no Agreement is reached within said fourteen (14) calendar days, an arbitrator shall be selected from a list of seven (7) arbitrators submitted by the Federal Mediation and Conciliation Service by alternate striking of 421
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names until one name remains. The party who strikes the first name from the panel shall be determined by lot.

F. Either the City or the Association may call any employee as a witness, and the City agrees to release said witness from work if he/she is on duty.

G The arbitrator shall have no power to alter, amend, change, add to or subtract from any of the terms of this Agreement. The decision of the arbitrator shall be based solely upon the evidence and arguments presented to him by the respective parties in the presence of each other.

H. The decision of the arbitrator within the limits herein prescribed shall be advisory only.

I. The arbitrator may hear and determine only one grievance at a time without the express agreement of the City and the Association. The parties shall share equally the expense of the cost of the arbitration, with the exception of counsel's fees.

ARTICLE 26 – FULL UNDERSTANDING, MODIFICATION, WAIVER
A. It is intended that this Agreement sets forth the full and entire understanding of the parties regarding the matters set forth herein, and any other prior or existing understanding or Agreements by the parties whether formal or informal, regarding any such matters are hereby superseded or terminated in their entirety.

B. Except as specifically provided herein, it is agreed and understood that each party hereto voluntarily and unqualifiedly waives its right, and agrees that the other shall not be required to negotiate with respect to any subject or matter covered herein during the term of this Agreement. Association members and the City can meet and confer on mutually desirable changes as needed.

C. Any agreement, alteration, understanding, variation, waiver, or modification of any of the terms or provisions contained herein shall not be binding upon the parties hereto unless made and executed in writing by all parties hereto, and if required, approved and implemented by the City Council.

D. The waiver of any breach, term or condition of this Agreement by either party shall not constitute a precedent in the future enforcement of all its terms and provisions.

ARTICLE 27 – TEMPORARY UPGRADE PAY
Employees covered by this Agreement who are temporarily assigned to a higher classification because of emergency conditions, Sick Leave, Vacation and/or vacancy shall receive the higher rate of pay commencing with the eleventh (11th) consecutive day of such assignment.
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ARTICLE 28 – AGENCY SHOP
A. All employees covered by this Agreement and employees subsequently hired must within 30 days of the effective date of this Agreement or 30 days from date of employment and as a condition of employment, either become and remain a Member of the Association in good standing for the term of this Agreement or pay a monthly service fee equal to Association dues to the Association.

B. Any employee who is a Member of a bona fide religion, body, or sect which has historically held conscientious objections to joining or financially supporting employee organizations shall not be required to join or pay a service fee to the Association, however, such employee shall be required to pay a monthly sum equal to Association dues to one of the charitable organizations listed below in the same manner as stated in “A” above for the duration of this Agreement.

Charitable Organizations:

1. United Way

2. City of Hope

3. American Cancer Society
ARTICLE 29 – PROFESSIONAL AND ADMINISTRATIVE EMPLOYEES

PURPOSE AND INTENT
A. The City is cognizant of the crucial role that the Professional and Administrative Employees (P&AE) have in implementing and enforcing the City’s policies, practices and procedures. The P&AE wholeheartedly accept these responsibilities and are committed to the success of City goals. The P&AE agrees to encourage Employees in an attitude of excellence of job performance and increased productivity.

B. Both the City and the P&AE must positively support these concepts and mutually promote a cooperative alliance for carrying out these provisions. The P&AE is a vital component in the current and future growth of the City and endeavors to act as a valued liaison to communicate City mandates to Employees. This attention to the pursuit of obtaining the most efficient and effective level of professionalism position the P&AE as an outstanding management support team.

ARTICLE 30 – CIVIL SERVICE RULES
A. P&AE is in agreement with the City’s intent to place a measure on the November 8, 2022 ballot to repeal Ordinance No. N.S. 211 adopted in 1960 pertaining to the City’s Civil Service System as set forth Chapter 2.76 of the Hermosa Beach Municipal Code pertaining to Civil Service. P&AE understands that the repeal of the Ordinance is necessary to allow the City to update its personnel rules and civil service rules.
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ARTICLE 31 – TERM OF AGREEMENT
This Agreement shall commence July 1, 2022 and continue until midnight June 30, 2025.

IN WITNESS WHEREOF, the parties hereto cause this Agreement to be executed this __________ day of __________, 2022.

PROFESSIONAL & ADMINISTRATIVE

EMPLOYEE GROUP OF HERMOSA BEACH CITY OF HERMOSA BEACH

NEGOTIATING COMMITTEE
_________________________________ _______________________________ Vicky Barker, California Employee Association Daphne M. Anneet, Chief Negotiator _________________________________ _______________________________ Kambria Vint, Recreation Coordinator Viki Copeland, Finance Director _________________________________ _______________________________ John Cordova, Public Works Superintendent Vanessa Godinez, HR Manager _______________________________
Angela Crespi, Deputy City Manager
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Exhibit A
EFFECTIVE JULY 1, 2022 - JUNE 30, 2023 (Compensation Study Median Adjustment* & 3%) **The salary range for this position was adjusted based on analysis conducted after the compensation study.

Monthly Salary Range
GRADE TITLE Step 1 Step 2 Step 3 Step 4 Step 5
A31 ACCOUNTANT $6,766 $7,104 $7,459 $7,832 $8,224
A10 ACCOUNTING MANAGER* $9,347 $9,814 $10,305 $10,820 $11,361 A19 ADMINISTRATIVE ASSISTANT $5,986 $6,285 $6,599 $6,929 $7,276 A22 ADMINISTRATIVE SERVICES COORDINATOR $7,051 $7,404 $7,774 $8,163 $8,572 A04 ASSISTANT ENGINEER $6,940 $7,287 $7,651 $8,034 $8,436 A06 ASSISTANT PLANNER $6,078 $6,382 $6,701 $7,036 $7,388 A02 ASSOCIATE ENGINEER* $8,356 $8,774 $9,213 $9,674 $10,158 A05 ASSOCIATE PLANNER $7,291 $7,656 $8,039 $8,441 $8,863 A03 BUILDING & CODE ENFORCEMENT OFFICIAL* $11,508 $12,083 $12,687 $13,321 $13,987 CITY ENGINEER** $12,438 $13,060 $13,713 $14,399 $15,119 A29 COMMUNITY SERVICES DIVISION MANAGER $8,614 $9,045 $9,497 $9,972 $10,471 A30 CRIME & INTELLIGENCE ANALYST $7,390 $7,760 $8,148 $8,555 $8,983 A21 DEPUTY CITY CLERK* $6,447 $6,769 $7,107 $7,462 $7,835 A33 DEPUTY CITY ENGINEER* $11,172 $11,731 $12,318 $12,934 $13,578 A18 EMERGENCY MANAGEMENT COORDINATOR** $7,987 $8,386 $8,805 $9,245 $9,708 A18 SENIOR MANAGEMENT ANALYST* $7,987 $8,386 $8,805 $9,245 $9,708 A37 ENVIRONMENTAL PROGRAMS MANAGER $9,953 $10,451 $10,974 $11,523 $12,099 A11 FINANCE CASHIER SUPERVISOR** $7,792 $8,182 $8,591 $9,021 $9,472 A24 GIS & IT ANALYST* $7,891 $8,286 $8,700 $9,135 $9,591 A28 MANAGEMENT ANALYST $6,714 $7,050 $7,403 $7,773 $8,162 A40 SENIOR PLANNER* $8,565 $8,993 $9,443 $9,915 $10,411 A39 SENIOR ENGINEER** $9,359 $9,827 $10,318 $10,834 $11,375 A07 PUBLIC WORKS SUPERINTENDENT* $8,237 $8,649 $9,081 $9,535 $10,012 A16 RECREATION COORDINATOR $5,489 $5,763 $6,051 $6,354 $6,671 A15 SR RECREATION SUPERVISOR* $6,545 $6,872 $7,216 $7,577 $7,956 425
22 Professional & Administrative Employees
EFFECTIVE JULY 1, 2023 - JUNE 30, 2024 (3% for all classifications) Monthly Salary Range
GRADE TITLE Step 1 Step 2 Step 3 Step 4 Step 5
A31 ACCOUNTANT $6,969 $7,317 $7,683 $8,067 $8,470
A10 ACCOUNTING MANAGER $9,627 $10,109 $10,614 $11,145 $11,702 A19 ADMINISTRATIVE ASSISTANT $6,166 $6,474 $6,798 $7,138 $7,494 A22 ADMINISTRATIVE SERVICES COORDINATOR $7,263 $7,626 $8,007 $8,407 $8,829 A04 ASSISTANT ENGINEER $7,148 $7,506 $7,881 $8,275 $8,689 A06 ASSISTANT PLANNER $6,260 $6,573 $6,902 $7,247 $7,610 A02 ASSOCIATE ENGINEER $8,607 $9,037 $9,489 $9,963 $10,463 A05 ASSOCIATE PLANNER $7,510 $7,885 $8,279 $8,693 $9,129 A03 BUILDING & CODE ENFORCEMENT OFFICIAL $11,853 $12,446 $13,068 $13,721 $14,407 CITY ENGINEER $12,811 $13,452 $14,125 $14,831 $15,573
A29 COMMUNITY SERVICES DIVISION MANAGER $8,872 $9,316 $9,782 $10,271 $10,785 A30 CRIME & INTELLIGENCE ANALYST $7,612 $7,992 $8,392 $8,812 $9,252 A21 DEPUTY CITY CLERK $6,640 $6,972 $7,321 $7,687 $8,070 A33 DEPUTY CITY ENGINEER $11,507 $12,083 $12,687 $13,321 $13,986 A18 EMERGENCY MANAGEMENT COORDINATOR $8,227 $8,638 $9,070 $9,524 $9,999 A18 SENIOR MANAGEMENT ANALYST $8,227 $8,638 $9,070 $9,524 $9,999 A37 ENVIRONMENTAL PROGRAMS MANAGER $10,252 $10,764 $11,302 $11,867 $12,462 A11 FINANCE CASHIER SUPERVISOR $8,026 $8,427 $8,848 $9,290 $9,756 A24 GIS & IT ANALYST $8,128 $8,534 $8,961 $9,409 $9,879 A28 MANAGEMENT ANALYST $6,915 $7,261 $7,624 $8,005 $8,407 A40 SENIOR PLANNER $8,822 $9,263 $9,726 $10,212 $10,724 A39 SENIOR ENGINEER $9,640 $10,122 $10,628 $11,159 $11,717 A07 PUBLIC WORKS SUPERINTENDENT $8,484 $8,908 $9,353 $9,821 $10,312 A16 RECREATION COORDINATOR $5,654 $5,936 $6,233 $6,545 $6,871 A15 SR RECREATION SUPERVISOR $6,741 $7,078 $7,432 $7,804 $8,194 426
23 Professional & Administrative Employees
EFFECTIVE JULY 1, 2024 - JUNE 30, 2025 (3% for all classifications) Monthly Salary Range
GRADE TITLE Step 1 Step 2 Step 3 Step 4 Step 5
A31 ACCOUNTANT $7,178 $7,537 $7,914 $8,310 $8,726
A10 ACCOUNTING MANAGER $9,916 $10,412 $10,933 $11,480 $12,054 A19 ADMINISTRATIVE ASSISTANT $6,351 $6,668 $7,001 $7,351 $7,719 A22 ADMINISTRATIVE SERVICES COORDINATOR $7,480 $7,854 $8,247 $8,659 $9,092 A04 ASSISTANT ENGINEER $7,363 $7,731 $8,118 $8,524 $8,950 A06 ASSISTANT PLANNER $6,448 $6,771 $7,110 $7,466 $7,839 A02 ASSOCIATE ENGINEER $8,865 $9,308 $9,773 $10,262 $10,775 A05 ASSOCIATE PLANNER $7,735 $8,122 $8,528 $8,954 $9,402 A03 BUILDING & CODE ENFORCEMENT OFFICIAL $12,209 $12,819 $13,460 $14,133 $14,840 CITY ENGINEER $13,195 $13,855 $14,548 $15,275 $16,039
A29 COMMUNITY SERVICES DIVISION MANAGER $9,139 $9,596 $10,076 $10,580 $11,109 A30 CRIME & INTELLIGENCE ANALYST $7,840 $8,232 $8,644 $9,076 $9,530 A21 DEPUTY CITY CLERK $6,840 $7,182 $7,541 $7,918 $8,314 A33 DEPUTY CITY ENGINEER $11,852 $12,445 $13,067 $13,720 $14,406 A18 EMERGENCY MANAGEMENT COORDINATOR $8,473 $8,897 $9,342 $9,809 $10,299 A18 SENIOR MANAGEMENT ANALYST $8,473 $8,897 $9,342 $9,809 $10,299 A37 ENVIRONMENTAL PROGRAMS MANAGER $10,559 $11,087 $11,641 $12,223 $12,834 A11 FINANCE CASHIER SUPERVISOR $8,267 $8,680 $9,114 $9,570 $10,049 A24 GIS & IT ANALYST $8,372 $8,790 $9,230 $9,692 $10,177 A28 MANAGEMENT ANALYST $7,123 $7,479 $7,853 $8,246 $8,658 A40 SENIOR PLANNER $9,087 $9,541 $10,018 $10,519 $11,045 A39 SENIOR ENGINEER $9,929 $10,425 $10,946 $11,493 $12,068 A07 PUBLIC WORKS SUPERINTENDENT $8,739 $9,176 $9,635 $10,117 $10,623 A16 RECREATION COORDINATOR $5,823 $6,114 $6,420 $6,741 $7,078 A15 SR RECREATION SUPERVISOR $6,944 $7,291 $7,656 $8,039 $8,441 427
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0617
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 11, 2022

CONSIDERATION OF A HOLIDAY FREE PARKING PROGRAM
(City Manager Suja Lowenthal)
Recommended Action:

Staff recommends City Council discuss and provide direction on a holiday free parking program at citywide commercial zone silver-post meters.

Executive Summary:

For a number of years, the City has provided holiday free parking in the City’s commercial areas to promote and encourage people to visit, dine, and shop locally throughout the holiday season. The program traditionally includes commercial zone silver-post meters and offers free parking in accordance with existing posted meter time limits. As the holiday season approaches, staff recommends City Council consider a program for the 2022 holiday season.

Background:

For several years, the City has offered a holiday free parking program in its commercial areas to support local business. The program was historically offered during a two-week period from December 11th - December 25th. In recent years, City Council extended the program to align with neighboring cities by offering a three-week program in 2017 and a four-week program in 2018, 2019, 2020, and 2021. As of 2021, the cites of Redondo Beach and Manhattan Beach offer four-week free holiday parking programs.

At its October 27, 2020 meeting, City Council approved a holiday free parking program at citywide commercial zone silver-post meters from the day after Thanksgiving to Christmas in calendar years 2020 and 2021.

Past Council Actions
Meeting Date Description
October 24, 2017 City Council approved a 3-week holiday parking program for 2017.

October 9, 2018 City Council a pproved a 4-week holiday parking program for 2018.

October 22, 2019 City Council a pproved a 4-week holiday parking program for 2019.

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Staff Report
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Past Council Actions
Meeting Date Description
October 24, 2017 City Council approved a 3-week holiday parking program for 2017.

October 9, 2018 City Council a pproved a 4-week holiday parking program for 2018.

October 22, 2019 City Council a pproved a 4-week holiday parking program for 2019.

October 27, 2020 City Council approved a 4-week holiday parking program for 2020 and 2021.

Analysis:

The City of Hermosa Beach has 445 silver-post meters (Attachment 1) located as follows:
· Bounded by the City border - Herondo Street on the south, Manhattan Avenue on the east, The Strand on the west, 27th Street on the north;
· Pier Avenue - bounded by Hermosa Avenue on the west, Pacific Coast Highway on the east; · Lot D - rear of the Underground Bar;
· Lot F - behind the Beach Market; and
· Lot G - the ten spaces on the city-owned lot on the north side of 4th Street, east of Pacific Coast Highway.

Enforcement of silver-post meters runs from 10:00 a.m. to 2:00 a.m., seven days per week. The silver-post meters also have either a two- or three-hour-time limit to allow for turnover of vehicles.

The two- or three-hour-time limit would not be affected by a holiday parking program, as free or discounted parking would be offered in accordance with existing posted meter time limits. Vehicles exceeding the posted times, or found in violation of other standard regulations, would be cited as normal.

If approved, red festive meter covers would be placed over all participating silver-post meters for the duration of the holiday free parking program. Meter covers have shown to be an effective branding tool for the program, while clarifying parking guidelines for those using the spaces.

If City Council desires to continue with a 4-week (28-day) holiday free parking program, the 2022 program would begin on November 25th and extend to December 25th. The estimated fiscal impact in total lost revenue during the 28-day period is estimated at $150,156. The total provided is for a oneyear period and based on current meter rates. A breakdown of the 4-week (28-day) total is outlined in City of Hermosa Beach Page 2 of 5 Printed on 10/6/2022
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Staff Report
REPORT 22-0617
Table 1.

Table 1
(28-day Period)
Should Council wish to consider an alternative duration, information regarding a two-week or threeweek period are provided below. 2-week (14-day) Program
A two-week (14-day) program would extend from December 12th through December 25th. The estimated fiscal impact in total lost revenue for a period of this length is $75,078, with a breakdown of these totals outlined in Table 2.

Table 2
(14-day Period)
HOLIDAY PARKING PROGRAM (Dec. 12 - Dec. 25)
METER REVENUE LOSS $50,512
PARKING CITATION REVENUE LOSS $24,566
TOTAL ESTIMATED REVENUE LOSS $75,078
3-week (21-day) Program
A three-week (21-day) program would extend from December 5th through December 25th. The estimated fiscal impact in total lost revenue for a period of this length is $112,617, with a breakdown of these totals outlined in Table 3.

Table 3
(21-day Period)
HOLIDAY PARKING PROGRAM (Dec. 5 - Dec. 25)
METER REVENUE LOSS $75,768
PARKING CITATION REVENUE LOSS$36,849
TOTAL ESTIMATED REVENUE LOSS$112,617
Since 2013, the City has foregone revenues estimated to exceed $1,000,000 in free parking City of Hermosa Beach Page 3 of 5 Printed on 10/6/2022
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Staff Report
REPORT 22-0617
Since 2013, the City has foregone revenues estimated to exceed $1,000,000 in free parking programs aimed at encouraging patronage of downtown businesses. This forgone revenue excludes incentives provided for electric vehicles or special event programming and is in addition to the suite of projects and programs provided by the City in support of economic development.

If approved by City Council, staff would begin planning for the implementation of a 2022 holiday free parking program and would work with the Chamber of Commerce to promote the program.

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 6: A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.

Policy:
· 6.4 Business Support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.

Mobility Element
Goal 1: Complete Streets that serve the diverse functions of mobility, commerce, recreation, and community engagement for all users whether they travel by walking, bicycling, transit, or driving.

Policy:
· 1.4 Target investments. Target public streetscape and infrastructure investments in locations with high potential for both public and private return on investment and long-term community value.

Fiscal Impact:

The fiscal impact to the City depends on the duration of the program. Should Council approve one of the three options outlined by staff, the estimated revenue loss associated with free holiday parking in meter revenue and parking citations for expired meters (on a per-year basis) would be as follows:
· $75,078 for a 2-week (14-day) program
· $112,617 for a 3-week (21-day) program
· $150,156 for a 4-week (28-day) program
Attachments:

1. Citywide Silver-Post Meter Map
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REPORT 22-0617

2. Letter from Chamber of Commerce dated October 5, 2022

3. Link to October 24, 2017 City Council Staff Report

4. Link to October 9, 2018 City Council Staff Report

5. Link to October 22, 2019 City Council Staff Report

6. Link to October 27, 2020 City Council Staff Report
Respectfully Submitted by: Sara Russo, Senior Management Analyst Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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Updated October 2019
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HERMOSA BEACH
CHAMBE R of COMMERCE
and VISITORS BUREAU
HBCHAMBER.NET | 310.376.0951 | [email protected]
October 5, 2022
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach CA 90254
RE: Free Holiday Parking
Dear City Council and Mayor:

The Hermosa Beach Chamber of Commerce and Visitors Bureau would like to request and support the longtime tradition of free metered parking in the downtown area to benefit the businesses of Hermosa Beach. We are requesting that you once again support this effort for two years so that our businesses can rest assured that there is incentive for holiday shoppers to visit Hermosa Beach.

The businesses of Hermosa do not take for granted the generosity of the Council in previous years.

We understand the financial impact on the City budget, but we believe that this action is a valuable investment for all of our community, including residents. It’s an investment in our local economy.

Also, as you know, the quantity of retail storefronts in Hermosa is less than our neighboring cities.

This means that during the holidays, our stores are already at a disadvantage. Free parking offers an opportunity for us to encourage shoppers to stop here because we offer free parking.

And last, the Chamber intends to launch a marketing effort to announce the program should it be approved. We look forward to encouraging our more than 13,000 email subscribers and thousands of social media followers, to come and shop while they enjoy free parking.

We hope that someday we have robust holiday season foot traffic. But until that time, the free parking is not only a kind gesture by the City to support business but also a way to give them a small advantage to entice shoppers.

Again, we urge you to please continue this generous tradition.

My best regards,
Jessica Accamando
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HBCHAMBER.NET | 310.376.0951 | [email protected]
President and CEO
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0636
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 11, 2022

REPORT REGARDING POLICY, SAFETY, AND HEATH CONSIDERATIONS RELATED TO THE CANNABIS INDUSTRY SPONSORED INITIATIVE (MEASURE M) ON THE NOVEMBER 8, 2022

GENERAL MUNICIPAL ELECTION BALLOT
(City Manager Suja Lowenthal)
Recommended Action:

Staff recommends City Council receive and file an informational report (Attachment 1) outlining policy, safety, and health considerations related to the cannabis initiative ballot measure, which will appear as Measure M on the November 8, 2022 General Municipal Election ballot.

Executive Summary:

At its May 24, 2022 meeting, City Council directed staff to prepare a report for educational purposes covering policy, safety, and health considerations related to the cannabis industry initiative. As requested, this informational report provides considerations regarding the qualified cannabis initiative, which will appear on the November 8, 2022 General Municipal Election ballot as Measure M.

Background:

On November 17, 2021, the Hermosa Beach City Clerk received a petition from the cannabis industry for the purposes of adopting an initiative that would repeal Hermosa Beach’s existing ban on all commercial cannabis business operations and allow commercial cannabis operations in the City. At City Council’s regular meeting on November 23, 2021, Mayor Detoy requested, and a unanimous vote of the City Council supported, directing staff to place on the next regular session agenda an item addressing the City’s options.

At its December 14, 2021 meeting, City Council directed the City Manager to form an Advisory Group to explore policy issues and provide City Council with input on whether the City’s current ban on cannabis business operations should be modified. The group held a total of six public meetings and at its sixth and final meeting on March 29, 2022, the Cannabis Advisory Group participated in a final voting process regarding its support of key policy issues and options of the City Council. The group’s final report and recommendations were presented to the City Council at its April 12, 2022 meeting.

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At its March 22, 2022 meeting, the City Clerk reported to the Council that the initiative petition had acquired sufficient signatures to qualify for the ballot. The City Council opted not to adopt the initiative by ordinance but as required by law, to instead submit the ordinance, without alteration, to the voters in the November 8, 2022 General Municipal Election.

At its May 24, 2022 meeting, City Council voted to oppose the industry-sponsored initiative and directed staff to prepare a report for educational purposes covering policy, safety, and health considerations related to the cannabis industry initiative. Council also directed staff to bring to Council for its consideration an ordinance allowing delivery of cannabis from outside the City and a measure that would impose a tax on cannabis businesses, should they be permitted in the City. State law requires any new local taxes to be approved by the voters (Proposition 218).

At its July 26, 2022 meeting, City Council adopted a resolution calling for the placement of a measure on the ballot for the November 8, 2022 General Municipal Election for the submission to the qualified voters of an ordinance adding Chapter 3.44 to Title 3 (Revenue and Finance) of the Hermosa Beach Municipal Code, establishing a tax on cannabis businesses operating within the City of Hermosa Beach should the initiative pass or the Council allow delivery at any time in the future.

At its August 9, 2022 meeting, City Council introduced and waived first reading of an Ordinance of the City of Hermosa Beach, California, adding Chapter 5.80 of the Hermosa Beach Municipal Code relating to cannabis delivery into the City and amending Section 1.10.040 to add that violations of Chapter 5.80 are subject to administrative penalty procedures. At its September 13, 2022 meeting, City Council waived the full second reading and adopted the ordinance by title.

Past Council Actions
Meeting Date Description
March 8, 2016
(Regular Meeting)
City Council adopted Ordinance 16-1362 amending sections

17.42.110 and 17.26.030 of the Hermosa Beach Municipal Code (HBMC) to expressly prohibit all commercial medical marijuana uses in the City and prohibiting cultivation for medical use by a qualified patient or primary caregiver.

November 28, 2017
(Regular Meeting)
City Council adopted Ordinance 17-1380 amending Title 17 of the HBMC to expressly prohibit all commercial cannabis activities in the City and prohibit outdoor cannabis cultivation for personal use.

November 23, 2021
(Regular Meeting)
Under Future Agenda Items, Mayor Detoy requested City Council consider directing staff to place on the December 14, 2021 agenda an item addressing the City’s options in light of the cannabis industry initiative filed with the City Clerk. The request was supported by a unanimous vote of the City Council.

December 14, 2021
(Regular Meeting)
City Council directed the City Manager to form an Advisory Group, subject to the Brown Act, to explore policy issues and provide City Council with input on whether the City’s current ban on cannabis business operations should be modified.

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Past Council Actions
Meeting Date Description
March 8, 2016
(Regular Meeting)
City Council adopted Ordinance 16-1362 amending sections

17.42.110 and 17.26.030 of the Hermosa Beach Municipal Code (HBMC) to expressly prohibit all commercial medical marijuana uses in the City and prohibiting cultivation for medical use by a qualified patient or primary caregiver.

November 28, 2017
(Regular Meeting)
City Council adopted Ordinance 17-1380 amending Title 17 of the HBMC to expressly prohibit all commercial cannabis activities in the City and prohibit outdoor cannabis cultivation for personal use.

November 23, 2021
(Regular Meeting)
Under Future Agenda Items, Mayor Detoy requested City Council consider directing staff to place on the December 14, 2021 agenda an item addressing the City’s options in light of the cannabis industry initiative filed with the City Clerk. The request was supported by a unanimous vote of the City Council.

December 14, 2021
(Regular Meeting)
City Council directed the City Manager to form an Advisory Group, subject to the Brown Act, to explore policy issues and provide City Council with input on whether the City’s current ban on cannabis business operations should be modified.

March 22, 2022
(Regular Meeting)
City Council opted not to adopt the cannabis industry initiative by ordinance and instead submit the ordinance, without alteration, to the voters in the November 8, 2022 Municipal Election.

April 12, 2022
(Regular Meeting)
City Council received and discussed the final report and recommendations of the Cannabis Advisory Group.

May 24, 2022
(Regular Meeting)
City Council action to oppose the cannabis industry-sponsored initiative filed with the City Clerk on November 17, 2021. Council also directed staff to bring to Council for its consideration an ordinance allowing delivery of cannabis from outside the City and a measure that would impose a tax on cannabis businesses, should they be permitted in the City.

July 26, 2022
(Regular Meeting)
City Council adopted a resolution calling for the placement of a measure on the ballot for the November 8, 2022 General Municipal Election for the submission to the qualified voters of an ordinance adding Chapter 3.44 to Title 3 (Revenue and Finance) of the Hermosa Beach Municipal Code, establishing a tax on cannabis businesses operating within the City of Hermosa Beach should the initiative pass or the Council allow delivery at any time in the future.

August 9, 2022
(Regular Meeting)
City Council introduced and waived first reading of an Ordinance of the City of Hermosa Beach, California, adding Chapter 5.80 of the Hermosa Beach Municipal Code relating to cannabis delivery into the City and amending Section 1.10.040 to add that violations of Chapter

5.80 are subject to administrative penalty procedures.

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businesses operating within the City of Hermosa Beach should the initiative pass or the Council allow delivery at any time in the future.

August 9, 2022
(Regular Meeting)
City Council introduced and waived first reading of an Ordinance of the City of Hermosa Beach, California, adding Chapter 5.80 of the Hermosa Beach Municipal Code relating to cannabis delivery into the City and amending Section 1.10.040 to add that violations of Chapter

5.80 are subject to administrative penalty procedures.

Discussion:

As directed by City Council at its May 24, 2022 meeting, staff prepared an informational report to assist the Hermosa Beach electorate in its evaluation of the cannabis initiative that will appear on the November 8, 2022 General Municipal Election ballot as Measure M (Attachment 1).

In summary, the provisions of Measure M provide a one-size-fits-all policy, tailored specifically to the benefit the cannabis-industry sponsors, and are almost identical to initiatives on the ballots in other South Bay beach cities. Should Measure M be approved by voters, it would become the prevailing City policy for cannabis regulation. It would repeal Hermosa Beach’s existing ban on cannabis retail storefront operations and would require the subjective and mandatory issuance of two retail cannabis business licensees of indefinite terms. It would also effectively repeal the newly adopted cannabis delivery by limiting cannabis delivery to the Hermosa Beach cannabis retailers who set up storefronts under Measure M.

Because it is a voter-approved initiative, Measure M would severely limit the ability of the City Council or City staff to make adjustments to address or ameliorate any impacts cannabis retail may have on the community. That’s because voter-approved initiatives - unless they expressly allow it - cannot be changed by the Council. They can only be changed by voter approval at a subsequent election. This means that Council would not be able to make any modifications to manage, address, or mitigate impacts or issues related to the initiative ordinance or any of its provisions - without going back to the ballot to seek voter approval of those changes.

If voters reject Measure M, the residents of Hermosa Beach may continue to legally order cannabis products without City limitation or restriction.

The City of Hermosa Beach encourages voters of the electorate to carefully weigh the merits of Measure M to determine whether they believe the ordinance represents objective and responsible local policy.

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:

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

Policy:
· 1.1 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.

Goal 2. The Community is active and engaged in decision-making processes.

Policy:
· 2.3 Public participation guidelines. Establish parameters and guidelines to ensure public participation is promoted through diverse methods
Fiscal Impact:

There are no fiscal impacts associated with the recommended action.

Attachments:

1. Informational Report

2. Link to March 8, 2016 City Council Staff Report

3. Link to November 28, 2017 City Council Staff Report

4. Link to November 23, 2021 City Council Agenda

5. Link to December 14, 2021 City Council Staff Report

6. Link to March 22, 2022 City Council Staff Report

7. Link to April 12, 2022 City Council Staff Report

8. Link to May 24, 2022 City Council Staff Report

9. Link to July 26, 2022 City Council Staff Report

10. Link to August 9, 2022 City Council Staff Report

11. Link to September 13, 2022 City Council Staff Report Respectfully Submitted by: Angela Crespi, Deputy City Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Mike Jenkins, City Attorney
Approved: Suja Lowenthal, City Manager
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City of Hermosa Beach
Report Regarding Policy, Safety, and Health
Considerations Related to the Cannabis
Industry- Sponsored Initiative (Measure M)
October 11, 2022
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INTRODUCTION:

On November 17, 2021, the Hermosa Beach City Clerk received a petition from the cannabis industry for the purposes of adopting an initiative that would modify Hermosa Beach’s policies and allow retail cannabis operations to be located in the City of Hermosa Beach within the C-3 (General Commercial) and Specific Plan Area-7 zones (Attachment 1). Having obtained the valid signatures of more than 10 percent of registered voters, the industry-sponsored initiative will be submitted, without alteration, to the voters on the November 8, 2022 General Municipal Election ballot.

At its May 24, 2022 meeting, the Hermosa Beach City Council directed staff to prepare a report for educational purposes covering policy, safety, and health considerations related to the cannabis industry-sponsored initiative. As requested, this informational report provides considerations regarding the qualified initiative, which will appear on the November 8, 2022 General Municipal Election ballot as Measure M.

This informational report focuses on considerations pertaining to Measure M, which would require two cannabis retail storefront businesses be located in the City of Hermosa Beach under the specific provisions outlined in the ordinance.

This report does not address medicinal sales, cultivation, distribution, or any issues related to the legal adult use of cannabis products.

BACKGROUND:

The Initiative Qualification Process
On March 3, 2022, the proponents of Measure M submitted signed initiative petitions to the Hermosa Beach City Clerk. The City Clerk conducted a prima facie review and determined that there were a sufficient number of signatures to place the initiative on the ballot.

On the same day, March 3, 2022, the signed petition was sent to the Los Angeles County Registrar of Voters for signature verification based on the City Clerk’s determination that the submitted number of signatures, prima facie, exceeded the minimum number required. The Registrar of Voters promptly began the process of verifying the signatures contained on the petition. The Registrar of 442
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Voters determined that based on Hermosa Beach having 14,214 registered voters, 1,421 signatures, representing at least 10 percent of Hermosa’s registered voters, were required to qualify the initiative for the City’s next regular municipal election.

On March 15, 2022, Los Angeles County Registrar of Voters found 1,650 signatures sufficient and representing more than the 1,421 signatures required to place the measure on the ballot. As a result, the petition qualified to be placed on the ballot for the November 8, 2022 General Municipal Election.

The City’s Initiative Review Process
At its December 14, 2021 meeting, City Council thoroughly reviewed and discussed the current state of cannabis law and the salient provisions of the cannabis industry-sponsored initiative filed with the City Clerk. After concluding its deliberations, City Council directed the City Manager to form an Advisory Group, subject to the Brown Act, to explore policy issues and provide City Council with input on whether, in light of the cannabis industry initiative, the City’s policies on cannabis business operations should be modified. A diverse group of stakeholders, leaders, and residents reflecting a wide array of experience and community opinions on the topic of cannabis was convened.

The group held a total of six public meetings and, at its sixth meeting on March 29, 2022, the Cannabis Advisory Group arrived at its final recommendations. With all nine members present, the group unanimously agreed that the lack of a retail storefront in Hermosa Beach does not cause a hardship for residents and that they were opposed to Measure M. The group’s final report and recommendations were presented to the City Council at its April 12, 2022 meeting.

Given that the initiative petition secured the required signatures to qualify for the ballot, and considering all options available under the Elections Code, City Council opted not to adopt the cannabis industry initiative and instead submitted the ordinance, without alteration, to the voters in the November 8, 2022 General Municipal Election. At the same time, Council took a proactive step to protect the City’s fiscal sustainability by placing a cannabis tax measure, Measure T, on the same November 8, 2022 Municipal Election Ballot.

City Council directed staff to prepare an informational impact report for educational purposes covering policy, safety, and health considerations related 443
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to the qualified initiative. The purpose of this report is to educate the electorate on the cannabis industry-sponsored initiative, which will appear on the ballot as Measure M. As directed by Council, the report covers the following areas of consideration:

A. Policy
B. Public Safety
C. Health
A. POLICY
City Policy History
At its March 8, 2016 meeting, City Council adopted Ordinance 16–1362 amending sections 17.42.110 and 17.26.030 of the Hermosa Beach Municipal Code (HBMC) to expressly prohibit all commercial medical marijuana uses in the City, cannabis deliveries to any location within the City, and prohibit cultivation for medical use by a qualified patient or primary caregiver. This ordinance codified the longstanding rule that since cannabis uses were not listed as a permitted use in the HBMC, medical marijuana uses were not permitted in the City.

At its November 28, 2017 meeting, the City Council modified its policy by adopting Ordinance 17–1380, which amended Title 17 of the HBMC to expressly prohibit all commercial cannabis activities in the City and prohibit outdoor cannabis cultivation for personal use. But the new policy allowed a person to cultivate no more than six living cannabis plants inside a private residence in accordance with Health and Safety Code Section 11362.2.

Current State law allows qualified patients and their caregivers to cultivate and possess cannabis for personal use in order to treat certain medical conditions. It also allows the personal possession and use of recreational cannabis. However, cities retain their authority to reasonably regulate the business of cultivating, processing, and selling cannabis and related products.

Current City Policy
At its August 9, 2022 meeting, City Council introduced and waived first reading of an Ordinance of the City of Hermosa Beach, California, adding Chapter 5.80 of 444
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the Hermosa Beach Municipal Code relating to cannabis delivery into the City and amending Section 1.10.040 to add that violations of Chapter 5.80 are subject to administrative penalty procedures. At its September 13, 2022 meeting, City Council waived the full second reading and adopted the ordinance by title.

Therefore, as of October 13, 2022, any resident can legally access cannabis products through delivery without City limitation or restriction as generally described below:
• Delivery activities may be provided by operators with physical locations outside of the City and may take place between the hours of 8:00 a.m. and 10:00 p.m.;
• Entities must be licensed and conform to all relevant legal standards and impose operational requirements to ensure health, safety, and welfare; and
• Entities must apply for, and be granted, a cannabis delivery use permit subject to standards that eliminate or minimize to the extent possible any associated impacts.

The City Manager will review any application for a cannabis delivery permit, which is accompanied by the application fee adopted by City Council, and issue a permit if all the required findings are supported by substantial evidence as described in detail in the ordinance. Once issued, cannabis delivery permit holders will be required to comply with all applicable State and local laws and tax requirements. They must also maintain detailed books and records.

As outlined in the retail delivery ordinance, the City Manager is authorized to establish any additional rules, regulations, and standards governing the issuance, denial, or renewal of cannabis delivery permits; the ongoing operations of a cannabis delivery permit holder; the City’s oversight of cannabis delivery permits; or any other matters related to cannabis delivery that are determined to be necessary. Any decision by the City Manager may be appealed to the City Council.

By adopting the retail delivery ordinance, City Council ensured that residents have convenient and legal access to cannabis products, while maintaining local control and the ability to modify the ordinance to address any community 445
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impacts that need to be addressed. Cannabis retail storefronts remain prohibited in the City of Hermosa Beach.

Cannabis Industry Initiative (Measure M) Limits City’s Ability to Address Impacts The provisions of Measure M provide a one-size-fits-all policy, tailored specifically to the benefit the cannabis-industry sponsors, and are almost identical to initiatives on the ballots in other South Bay beach cities.

Should Measure M be approved by voters, it would become the prevailing City policy for cannabis regulation. It would repeal Hermosa Beach’s existing ban on cannabis retail storefront operations and would require the subjective and mandatory issuance of two retail cannabis business licensees of indefinite terms.

It would also effectively repeal the newly adopted cannabis delivery ordinance by indefinitely limiting cannabis delivery to the Hermosa Beach cannabis retailers who set up storefronts under Measure M.

Because it is a voter-approved initiative, Measure M would severely limit the ability of the City Council or City staff to make adjustments to address or ameliorate any impacts cannabis retail may have on the community. That’s because voterapproved initiatives – unless they expressly allow it – cannot be changed by the Council. They can only be changed by voter approval at a subsequent election.

This means that the Council would not be able to make any modifications to manage, address, or mitigate impacts or issues related to the initiative ordinance or any of its provisions – without going back to the ballot to seek voter approval of those changes.

Measure M would only allow the Council, in its discretion, to permit cannabis cultivation, manufacturing, distribution, and testing operations (but not microbusinesses) subject to the rules and limitations determined by the Council.

A report on the local impacts of commercial cannabis prepared by the International City/County Management Association (ICMA) recommends cities “be wary of doors that are difficult to close once opened; consider sunset provisions or temporary caps as ways to test your local market and assure residents that you will continue to revisit regulations and make adjustments as necessary” (2018).
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Recognizing the need to review and modify regulations pertaining to retail operations, the Hermosa Beach Cannabis Advisory Group recommended the requirement of a Conditional Use Permit (CUP) as a possible regulation for consideration if the City were to develop its own ordinance relative to cannabis retail storefronts (Attachment 3). While the requirement of a CUP would be consistent with the requirements placed on alcohol serving establishments in Hermosa Beach, it is not included in the initiative ordinance language.

Measure M Would Establish New Business Licensing System Just for Cannabis Retailers
All business licenses issued in the City of Hermosa Beach are issued for a one-year term and must be renewed annually. In contrast to current City practice, Measure M would create an entirely new category of business licenses solely for the cannabis retail storefronts. It would require the City to issue licenses of indefinite terms for these businesses and place the onus on the City to conduct an annual review and initiate costly suspension or revocation proceedings if public safety or other problems are identified.

The selection and licensing process outlined in the ordinance is also unique from other business license processes. It is described as a merit-based process, but in implementation will become discriminatory in nature as it is tailored to favor a limited number of applicants. The process outlined in the ordinance dictates that the City Manager shall solely evaluate, and award points based on eight categories, with a range of points to be awarded in subcategories. The points categories are: (1) qualifications; (2) site plans; (3) business and operations plan; (4) security plan; (5) safety plan; (6) neighborhood compatibility plan; (7) community benefits plan; and (8) labor and employment plan.

While the criteria and point system may seem fairly objective, the ordinance would require the City Manager to award extra points to a very specific and limited category of applicants. Many of the requirements significantly limit the pool of applicants that could achieve a high enough score to obtain a license.

The proposed ordinance differs from merit-based competitive selection processes established in other jurisdictions that provide for scoring by multiple panelists. The practice of averaging multiple scores tends to produce more well-rounded scoring.
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Under the proposed ordinance, the decision of the City Manager is not subject to any appeal; which means that any aggrieved party’s recourse is to immediately file a legal challenge of the decision. This lack of appeal process deprives the City of its normal tools to resolve licensing disputes in advance of litigation and invites frequent legal challenges from those dissatisfied with the process.

Measure M Raises Operational and Enforcement Concerns
As stipulated by Measure M, the two retail business locations would be authorized “by right” in the C-3 (General Commercial) and Specific Plan Area-7 zones. These zones are generally located along the Pacific Coast Highway and Artesia Boulevard corridors. The overlay map attached to this report (Attachment 2) shows the permissible locations where the two storefront retail cannabis businesses may be located, taking into account the buffering from sensitive uses outlined in the ordinance. As shown in the map, cannabis retail would be allowed on approximately 35 properties on Pacific Coast Highway near the northerly and southerly boundaries of the City.

While the ordinance does contain operating and security regulations for the retail and delivery activities, it does not limit hours of operation for cannabis businesses.

Under State law, the retail business can only engage in sales and deliveries from 6:00 a.m. to 10:00 p.m. Typically, cities could limit these hours further through a discretionary licensing or permitting process.

The ordinance states that the hours of operation would be as specified in the cannabis permit and in compliance with State law. But the ordinance does not provide express authority for the City Manager to place any business or sitespecific operating conditions, such as hours of operation, on the permits when they are issued. This restriction is also contrary to the typical City business license processes.

Measure M requires the submittal of a cannabis retail operations plan including information on construction/tenant improvements, sources of capital/financial statements, and a description of the following elements of the operation: (1) products sold; (2) marketing plan; (3) day-to-day operations; (4) cash handling procedures; (5) inventory control/track and trace system; and (6) distribution, loading/unloading, and delivery procedures.
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The operational requirements also attempt to regulate such things as: prohibiting issuance of doctors’ recommendations on-site; providing business contact information to the City Manager; prohibiting odors that can be detected outside the business; prohibiting loitering; requiring criminal background checks for owners, managers, supervisors, and employees; and prohibiting products and graphics from being visible from the exterior.

Per the ordinance, a security plan would be prepared by professional security consultants and would show security procedures and equipment, description of the alarm and monitoring systems, and description of onsite security personnel and their responsibilities. However, the ordinance does not include any minimum standards or requirements for the security provisions.

The initiative requires any cannabis business to implement sufficient security measures to deter and prevent unauthorized access and to deter and prevent theft. Cannabis must be stored in a secured and locked room. The business must have 24-hour surveillance cameras, and the footage must be remotely accessible by the Police Department. The ordinance requires sensors and panic buttons and a designated security representative/liaison to the City, in addition to other requirements. Under State law, alcohol and tobacco cannot be consumed or sold on-site. State law only permits cannabis to be consumed onsite if the local jurisdiction permits it and certain requirements are met. The operating requirements in the initiative prohibit onsite cannabis consumption.

While all of the above outlined requirements are, in theory, designed to protect the community from impacts, they leave the City with significant enforcement responsibilities and no tools or financial support for that enforcement. As identified in the ICMA report, implementing protective operating and siting requirements places a significant responsibility and workload on the City’s Code Enforcement (2018). The City’s current staffing cannot assume the additional responsibility created by Measure M without impacting the current level of services provided to the community. Without the ability to modify any provisions of Measure M, management of cannabis retail operations would be a challenge. 449
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B. PUBLIC SAFETY
If Measure M is approved by voters and two cannabis retail storefronts established under the specific terms of the ordinance, public safety in the area surrounding the retail establishments and the overall community would be impacted.

In the most favorable of comparisons, the business model of a retail cannabis storefront could be compared to a package liquor store or a convenience store.

In each of these licensed operations, high pedestrian and vehicular traffic is experienced, and it is very common to see customers who purchased products at these businesses consuming the products nearby, but not immediately on the property of the business. With Measure M, nearby consumption is a serious concern because the ordinance does prohibit onsite cannabis consumption.

Nuisances and Crime Associated with Cannabis Retail
The existence of a cannabis retail outlet has been associated with increases in nuisance-related crimes. A recent study published in the Journal of Regional Science and Urban Economics estimated that in census tracts with marijuana dispensaries relative to other census tracts, nuisance-related crime reports increase by about 4.2 per 10,000 census tract residents (2021).

The Hermosa Beach Police Department HBPD is not equipped to handle an increase in crimes without additional resources. When a crime is committed, the impact is not limited to the response of an officer but also includes the investigation of crimes, handling of paperwork, and processing of arrested individuals. The work hours and employees required to address additional crime reports would be significant.

A similar study published in the Journal of Qualitative Criminology found a statistically significant increase in property crimes in the area surrounding retail outlets (2021). According to this study, the analysis “shows some evidence that opening a retail marijuana outlet is associated with an increase in crimes reported within the immediate area specifically for property crimes, violent crimes, and robberies.” The increase in crime, particularly robberies, is partially due to the fact that cannabis retail operations are almost completely a cash business. Another factor contributing to the increase is that cannabis is a highly desirable product 450
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with a high resale value on the black market. The value of the product makes retail storefronts more suspectable to afterhours burglaries.

The authority of onsite security for a cannabis retail operator is limited to protecting the business itself and does not extend to surrounding properties.

Therefore, the Hermosa Beach Police Department and the City’s Code Enforcement officers would be called upon to maintain community safety by responding to crimes impacting the retail operator, as well as quality of life issues and other crimes in the surrounding area.

City Would have Increased Licensing Enforcement Responsibilities If passed by the voters, Measure M would also create a low-level misdemeanor crime if unlicensed operators moved into Hermosa Beach and tried to open. This would create a situation where the licensed establishment would call and ask for assistance from the City in investigating the legality of the unlicensed operator and would be a challenge from a legal and resource perspective. Enforcement of illicit businesses would have a significant impact on the City and would require additional staffing.

Because every cannabis licensee must have a California State license to operate, the State Department of Cannabis Control would provide some level of enforcement resources. However, the State agency would rely heavily on partnership with local law enforcement to uphold California’s commercial cannabis laws and regulations.

The Hermosa Beach Police Department and Code Enforcement Division entrusted with protecting community safety are small teams that strive to be accessible to our residents, visitors, and business. Proactive patrol, high visibility, and responsiveness are important parts of the City’s public safety services.

Without local control and the ability to regulate, improve, or enforce safe practices at cannabis retail storefronts, any increase in calls would create a drain on the City staffing resources and reduce the City’s ability to maintain the current level of public safety throughout the community.
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C. HEALTH
Cannabis has a substantial impact on the health of our youth and young adults.

The Substance Abuse and Mental Health Services Administration reports that youth are susceptible to the substantial effects of cannabis (2021). In the shortterm, cannabis commonly causes an increased heart rate, anxiety, and memory impairment. It also causes the impaired ability to perform complex tasks, difficulty thinking and problem solving, decreased alertness and impaired ability to drive.

In the long-term, human brain development continues into an individual’s twenties, and exposure to cannabis can alter the brain’s normal communication mechanisms and the brain’s reward pathway.

The Beach Cities Health District (BCHD) is a healthcare district focused on preventive health that serves the communities of Hermosa Beach, Manhattan Beach, and Redondo Beach. Based on medical evidence, BCHD recommends that youth and young adults under the age of 21 abstain from the use of substances such as alcohol, cannabis, vaping, and unprescribed prescription drugs in order to protect their developing brains and optimize healthy brain development.

Cannabis Retail Establishments Would be in Areas Highly Visible to Youth If approved by the voters, Measure M would require the issuance of two retail cannabis business licenses along the major throughfares of Pacific Coast Highway and Artesia Boulevard. In a small community like Hermosa Beach, visibility and proximity are unavoidable. Of concern is the visibility and proximity to our most vulnerable population, youth.

Based on the map of possible locations for cannabis retail operations (Attachment 2), one of the possible locations is along Artesia Boulevard, which is designated as a Safe Route to School that leads to and from Mira Costa High School. The other possible locations, near the south end of town on Pacific Coast Highway, are near the school crossing guard location at 5th street.

These locations near areas young people frequent are concerning because of the findings in recent studies. A 2021 statewide survey regarding recreational marijuana legalization and use among California adolescents found that recreational marijuana legalization in California has been associated with 452
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increases in the likelihood of adolescents having used marijuana in the last 30 days, as well as lifetime use of marijuana. Further, a research report regarding associations between young adult marijuana outcomes and availability of medical marijuana dispensaries and storefront signage found more frequent use among young adults who live near medical marijuana dispensaries in the Los Angeles County (2019).

Cannabis Retail Establishments Could Increase Youth Access to Cannabis While Measure M does limit the sale of cannabis products to persons over 21 years of age, Beach Cities Health District’s survey has found that beach cities youths under the age of 21 have found ways to obtain cannabis despite these limitations.

Placing two dispensaries in Hermosa Beach likely would increase Hermosa young people’s access to cannabis products.

The 2022 Beach Cities Health District California Healthy Kids Survey found 22.4 percent of beach cities 11th graders report obtaining marijuana from an adult acquaintance and 22.5 percent reported purchasing the products at a dispensary.
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The Healthy Kids Survey also found that by 11th grade, as many as 16 percent of our local beach cities youth reported using marijuana in the past 30 days:

Source: California Healthy Kids Survey, 2018-22
California and Los Angeles County data are provided by the Biennial State California Healthy Kids Survey (CHKS) Report, based on a randomly-selected representative sample of secondary schools surveyed over a two-year period. The most recent available data is from 2017-2019.

Measure M cannot control for the “shoulder tap” method of obtaining products by standing outside of a cannabis storefront and asking adults to buy them cannabis.

The Decoy Shoulder Tap Program is an enforcement program that California Department of Alcoholic Beverage Control and local law enforcement agencies use to detect and deter shoulder tap activity related to the sale of alcohol. During the program, a minor decoy, under the direct supervision of law enforcement officers, solicits adults outside of licensed stores to buy the minor decoy alcohol.

Any person seen furnishing alcohol to the minor decoy is arrested for furnishing alcohol to a minor. The California Department of Cannabis Control does not currently have a shoulder tap enforcement program and the HBPD would not be able to undertake such enforcement activities.

CONCLUSION:

Given the diversity of viewpoints on this policy matter, this report is intended to focus on the considerations pertaining to Measure M itself and not on the individual merit of cannabis retail operations.

If voters reject Measure M, the residents of Hermosa Beach may continue to legally order cannabis products without City limitation or restriction.

If approved by the voters, Measure M would become the prevailing City policy and could only be modified by a costly special election. As written, the ordinance:
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• Limits the City’s ability to revoke or adjust regulations to address any potential impacts;
• Places an enforcement responsibility on the City and its public safety resources without tax support; and
• Places cannabis retail storefronts in closer proximity to the City’s adolescent population.

Further, if approved by a simple majority of voters, and thereafter challenged in court, the City would be required to defend Measure M. This includes defending the measure from constitutional or statutory challenges to the measure's validity or implementation. This legal obligation may result in costly legal fees for the City and its taxpayers.

For the reasons described herein, the City of Hermosa Beach encourages voters of the electorate to carefully weigh the merits of Measure M and determine whether the ordinance represents objective and responsible local policy.

Attachments

1. Cannabis Initiative (Measure M)

2. Location Map

3. Cannabis Advisory Group Final Votes and Recommendations 455
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References

1. International City/County Management Association, Local Impacts of Commercial Cannabis (2018).
https://icma.org/sites/default/files/Local%20Impacts%20of%20Commercial% 20Cannabis%20Final%20Report_0.pdf

2. Journal of Regional Science and Urban Economics, Hits from the Bong: The impact of recreational marijuana dispensaries on property values (2021). https://www.sciencedirect.com/science/article/abs/pii/S0166046221000156? via%3Dihub

3. Journal of Quantitative Criminology, Exploring the Neighborhood-Level Impact of Retail Marijuana Outlets on Crime in Washington State (2021). https://link.springer.com/article/10.1007/s10940-021-09534-5

4. Substance Abuse and Mental Health Services Administration, Preventing Marijuana Use Among Youth (2021).
https://store.samhsa.gov/product/preventing-marijuana-use-amongyouth/PEP21-06-01-001?referer=from_search_result

5. Recreational Marijuana Legalization and Use Among California Adolescents, Findings From a Statewide Survey (2021).
https://doi.org/10.15288/jsad.2021.82.103

6. Associations Between Young Adult Marijuana Outcomes and Availability of Medical Marijuana Dispensaries and Storefront Signage (2019). https://doi.org/10.1111/add.14711

7. California Healthy Kids Survey, Hermosa Beach, Manhattan Beach, and Redondo Beach (2018-2021). https://calschls.org/
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Attachment 1: Cannabis Initiative (Measure M)
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Our Lady of
Guadalupe School
Ocean View
Academy
Hermosa Beach
Community Center
Hermosa
Valley School
Hermosa
View School
Mira Costa
High School
OK Corral Child
Care Center
Hermosa
Vista School
Retail Cannabis Overlay Buffer Map
Zoning Designation
C-3 General and Highway Commercial
SPA-7 Specific Plan Area No. 7
Parcels identified as sensitive use
600 ft radius from day care and youth centers
1,000 ft radius from schools
1,500 ft radius from Clark Stadium and Hermosa Beach Commmunity Center Robinson
Elementary
Edith Rodaway
Friendship Park
Fort Lots-of-Fun
Park
Moondust
Parkette
King Harbor
Youth Foundation
Waterfront
Education
South Park
Clark Stadium
South Bay Artist
Collective Youth Program
Miss Bee's
Tutoring
Fusion Academy
South Bay
Sylvan Learning
Center
Seaview
Parkette
Journey of
Faith School
Study Hut
Consulting
Mathnasium
La Marina
Preschool
Valley Park

5.84.060 • Location and Design Requirements for Cannabis Businesses.

A. Retailers shall be a permitted use by right subject to this Chapter 5.84 on property (1) located more than six-hundred (600) feet from any day care center or youth center, (2) located more than one-thousand (1,000) feet from any school, (3) located more than one-thousand five-hundred (1,500) feet from Clark Stadium or the Hermosa Beach Community Center, and (4) zoned: C-3 (General Commercial Zone) or SPA-7 (Specific Plan Area No. 7)
Attachment 2
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CANNABIS ADVISORY GROUP FINAL VOTES
March 29, 2022
Questions Majority Matt
Cottrell
Russ
Gilbert
Nathan
Tribble
Heidi
Swan
Cammie
Herbert
Andrea
Valcourt
Jason
Johnson
Tom
Bakaly
Dave
Davis
Do Hermosa Beach residents have adequate access to legal cannabis? YES NO NO NO YES YES YES YES YES NO
Does the lack of a retail storefront in Hermosa cause hardship to Hermosa residents? NO NO NO NO NO NO NO NO NO NO
Does the group support the cannabis initiative? NO NO NO NO NO NO NO NO NO NO Does the group support keeping the current cannabis ban on both storefronts and delivery? YES NO NO NO YES YES YES YES YES NO Should Hermosa Beach lift the ban on cannabis delivery? YES YES YES YES NO YES NO NO NO YES Does the group support a non-storefront delivery based in Hermosa Beach? NO YES YES YES NO NO NO NO NO YES
Should Hermosa Beach lift the ban on cannabis storefronts? NO YES YES YES NO NO NO NO NO NO Should the City Council create a competing initiative? YES YES YES YES NO YES NO NO NO YES In the event City Council desires a competing initiative, should the competing initiative include a taxation component?

YES YES YES YES YES YES YES YES YES YES
In the event there is no competing initiative, should there be a stand-alone tax measure?

YES YES YES YES YES YES YES YES YES YES
Should the City have a flexible cannabis tax range? YES YES YES YES YES YES YES YES YES YES Should the City Council adopt a new cannabis ordinance prior to the November Election to allow cannabis delivery and/or retail or other?

NO NO NO NO NO NO NO NO NO NO
Attachment 3
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2 | P a g e
Possible Regulations for Consideration
(In the event City Council desires a competing initiative related to storefronts) ➢ 1,500 foot minimum distance from schools – if it would not create a ban; ➢ Restrictions regarding density and proximity to schools, as well as routes to school; ➢ Prohibition of retail in the area surrounding the Pier; ➢ Prohibition of outdoor advertising;
➢ Restriction on flavored products and combustibles and products marketed towards youth; ➢ The exploration of a regional agreement with neighboring cities; ➢ Funding for schools and ongoing education;
➢ Buffer in-between storefront locations;
➢ Security with Police Department access to security camera system feed; ➢ Limit on number of storefronts;
➢ Requirement for Conditional Use Permit;
➢ No cultivating or manufacturing activities;
➢ Requirement to correct issues within 24 hours or be shut down; ➢ No property requirement to apply; and
➢ Merit based selection process.
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 22-0638
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of October 11, 2022

TWO APPOINTMENTS TO PUBLIC WORKS COMMISSION
(City Clerk Myra Maravilla)
Recommended Action:

Staff recommends City Council appoint two new members to the Public Works Commission for fouryear terms ending October 31, 2026.

Executive Summary:

At its October 11, 2022 4:00 p.m. meeting, City Council conducted interviews for two Public Works Commission vacancies. Council interviewed five applicants: Steven Campbell (Attachment 1); Kathy Dunbabin (Attachment 2); Thor L. Legvold (Attachment 3); Matt McCool (Attachment 4); and Kimberly Noble (Attachment 5). Staff recommends City Council appoint two members to the Public Works Commission for four-year terms ending October 31, 2026.

Background:

In accordance with Hermosa Beach Municipal Code Section 2.80, the Public Works Commission shall consist of five members appointed by the City Council for staggered four-year terms. Members of the Public Works Commission shall be qualified electors of the City to be considered for a position.

Key duties of the Public Works Commission are to review and make a recommendation to the City Council on all cCapital iImprovement Pprogram (CIP) projects, assist with developing and updating design guidelines for public improvements, and other matters referred to the Commission by the City Council, as outlined in Hermosa Beach Municipal Code Section 2.80.

The Public Works Commission meets regularly in the Council Chambers at 7:00 p.m. on the third Wednesday of odd-numbered months (January, March, May, July, September, and November).

However, the Commission is currently meeting at 6:00 p.m., in alignment with the City Council, and is meeting in a hybrid format to give members of the public and the Commission the option to join a meeting via Zoom or in-person.

At its August 9, 2022 meeting, the City Council directed the City Clerk to advertise for applicants to fill the two Public Works Commission terms due to expire October 31, 2022. Along with e-notifications, the vacancy notice with invitation to apply was posted on August 18, 2022 on the City’s website and City of Hermosa Beach Page 1 of 3 Printed on 10/6/2022
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Staff Report
REPORT 22-0638
the vacancy notice with invitation to apply was posted on August 18, 2022 on the City’s website and was published in the Easy Reader, with an application filing deadline of 6:00 p.m. on Wednesday, September 21, 2022.Applications were accepted until 6:00 p.m. on Wednesday, September 21, 2022.

Past Council Actions
Meeting Date Description
August 9, 2022 (Regular Meeting) City Council directed the City Clerk to advertise for app 31, 2022.

September 28, 2022 (Regular Meeting) City Council received applications from Steven Campb and scheduled interviews for October 11, 2022 to fill tw Discussion:

Having conducted interviews at 4:00 p.m. on October 11, 2022, staff recommends City Council appoint two new members to the Public Works Commission for four-year terms ending October 31, 2026.

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

Policies:
· 1.1 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.
· 1.4 Consensus oriented. Strive to utilize a consensus-oriented decision-making process. · 1.7 Diversity of representation. Strive to reflect a comprehensive cross-section of the community in appointments to Commission and Advisory Committees.

Goal 2. The community is active and engaged in decision-making process.

Policies:
· 2.3 Public participation guidelines. Establish parameters and guidelines to ensure public participation is promoted through diverse methods.
· 2.6 Responsive to community needs. Continue to be responsive to community inquiries, City of Hermosa Beach Page 2 of 3 Printed on 10/6/2022
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· 2.6 Responsive to community needs. Continue to be responsive to community inquiries, providing public information and recording feedback from community interactions.

Fiscal Impact:

There is no fiscal impact associated with the recommended action.

Attachments:

1. Application for Steven Campbell

2. Application for Kathy Dunbabin

3. Application for Thor L. Legvold

4. Application for Matt McCool

5. Application for Kimberly Noble

6. Link to August 9, 2022 City Council Staff Report

7. Link to September 28, 2022 City Council Staff Report Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 3 of 3 Printed on 10/6/2022
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CITY OF HERMOSA BEACH

BOARD/COMMISSION APPLICATION
Name Of Board/Commission - Select Board/Commission -
Name Steven Campbell
Address
Email
Occupation/Profession novelist
Employer Name & Address self
Phone Number
REFERENCES (Please List Three References)
Personal: Perry Cammack
Professional: Armand Shirikian
Other: Jenny Lee
COMMUNITY PARTICIPATION AND SERVICE (Past and Present)
Why do you wish to become a Commission member?
I've lived here for about 20 years so I feel it's overdue. And I figure not as many people will be interested in Public Works, so it will be harder to fill.

What do you feel are the duties and responsibilities of a Commission member? Evaluate the proposals for city improvements using public funds and report to the City Council.

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Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member?
If yes, please explain below:

Please add below or attach a resume with your education, employment, memberships, past activities, and other experience that you feel would qualify you as a Board/Commission member.

Board/Commission Meeting Location Meeting Schedule
Building Board of Appeals City Council Chambers Second Monday of each month at 7 p.m.

Civil Service Board City Council Chambers Third Wednesday of each month at 5 p.m.

Parks, Recreation & Community
Advisory Commission
City Council Chambers First Tuesday of each month at 7 p.m.

Planning Commission City Council Chambers Third Tuesday of each month at 7 p.m. (in December meeting is on the second
Monday)
Public Works Commission City Council Chambers Third Wednesday of odd-numbered months (January, March, May, July, September, and
November) at 7 p.m.

Do you foresee any scheduling problems that might cause you to miss meetings? How long have you lived in Hermosa Beach?
Additional comments:

Signature: Date:

It is extremely difficult for me to think of any situation where I would be evaluating anything that could personally affect me or my fortunes.

Since about 2013 I've been a novelist. I write the science fiction comedy series, Hard Luck Hank. audible.com/stevencampbell
https://easyreadernews.com/hard-luck-hank-isnt-messing-around/ Before that, I was a senior computer scientist for about 15 years. I worked/consulted for:
eBay
Proctor and Gamble
B iti h T l

NO NO 20 years
I've been in Los Angeles since 1994. About 20 years in Hermosa and 3 years in Manhattan Beach before that. I've lived in the same spot the entire time, about a block up from Martha's/Green Store/Bottle Inn. I own one car that is a 2018 and it has less than 15K miles. So I'm walking, bike riding everywhere. I know the city fairly well.
08/27/2022
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Thor L. Legvold, Psy.D.
| | ) | www.legvoldconsulting.com
www.linkedin.com/in/thor-l-legvold
Industrial-Organizational Psychologist
Helping Leaders, Teams and Organizations Find Their Own Ideal Solutions SPECIALIZING IN:

Global Organizational Development | Talent Management | 360 Assessment | Change Management Leadership & Team Effectiveness | Executive Coaching | Tailored Strategy Design and Implementation

EXPERIENCE
Director of US Operations | Boost.ai, Inc. | 01.2020 – Present Boost.ai specializes in enterprise-grade conversational artificial intelligence (AI). Inventor of the world’s most scalable conversational AI platform, Boost.ai empowers enterprises to automate customer service and internal support channels, enhance human efficiency and drive revenue with proprietary self-learning AI and a no-code solution that’s quick to deploy, easy to learn and highly scalable. • Responsible for ensuring smooth, consistent operations at all levels of the organization and alignment with policies and strategies between the US office and HQ.
• Develop an organization and culture that fits the startup we are yet will scale as we grow and expand. • Report to CEO, work alongside VP of sales to lead and develop an agile and effective US organization. • Develop the organization, it’s policies, processes, perform leadership and team development.

Senior Consultant/Regional Market Strategist | AIIR Consulting | 02.2018 – Present AIIR Consulting is a global leadership development consultancy dedicated to increasing the effectiveness and performance of leaders, teams and organizations. • Assess and coach C-Suite and senior level executives in Fortune 500 companies; design and deliver leadership development and team effectiveness programs in collaboration with stakeholders and organizational goals
• Implement and deliver on plans and manage projects, ensure that stakeholder buy-in and engagement are maintained, and that long-term behavioral change occurs • Develop team of west coast consultants to increase market share in important California business hubs, network and generate new business, participate in and lead regular colleague-based mentoring Senior Consultant | Bjørnson Organizational Psychologists | 05.2017 – Present Work with multinational corporate clients, develop 360˚ needs assessments to determine performance gaps across all levels within the organization, collaborate with stakeholders to design and implement development programs that address these challenges. Manage projects and secure stakeholder engagement, generate new business and develop new products.
• Assess and coach C-Suite level executives; diagnose, design and deliver leadership, team, and global organizational design and development to maximize leadership impact and effectiveness • Manage talent, perform change management, strategy development, facilitate conflict management, cross cultural communication and integration of geographically spread teams and locations • New business development, conduct ongoing program evaluation to ensure continual improvement, new product development
506
2 Senior Consultant | Organizational Psychologist | Assessit | 03.2015 – 03.2017 Assessit is a pan-Scandinavian consultancy specializing in executive search and selection and organizational & leadership development. I worked with private and public sector clients to improve leadership, organizational climate and culture, efficiency and profitability, as well as facilitate and develop global cross-cultural teams. • Executed Senior Executive assessments and selection. Performed coaching in private-sector firms, leadership and team development with both private- and public-sector clients nationally and internationally • Collaborated with clients to assess needs, design and implement development solutions at the leader, team and organizational level, ran assessment center programs on behalf of clients • As Project Lead, consistently mentor colleagues and manage program resources across multiple projects • Identified potential customers by networking at trade and industry gatherings, create and deliver partnership proposals tailored to customer needs and business goals • Followed up with post-program evaluation to ensure lasting client impact and explore additional partnership opportunities
• Expanded new product areas and concepts based upon research and analysis of market and industry trends • Managed the team’s client portfolio of recurrent and new business Senior Psychology Specialist | STAVANGER UNIVERSITY HOSPITAL | 08.2010 – 01.2015 Provided outpatient treatment of patients with various disorders, supervised less experienced staff. • Assessed patient needs, determined diagnosis and tailored treatment plans, monitored progress, reported and documented treatments and effects
• Participated in cross-disciplinary treatment team collaboration, supervised and coached non-specialist colleagues
• Obtained EMDR training and certification
Technical Director | MEMNON (SONY) | 09.2006 – 01.2010 (Management for hire) Memnon (Sony) is a local division of one of the EU’s largest digital assets management companies. • Recruited, trained and managed Engineer team; designed and equipped facilities in accordance with internationally established standards
• Established standard operating procedures for asset management based in accordance with international standards and best practices
• Partnered with third party companies, customers, and technical committees to effectively develop and implement worldwide industry standards
Consulting Organizational Psychologist | KIRKEGATE PSYKOLOGKONTOR | 03.2003 – 03.2015 Coordinated with clients in SME and startup markets to tailor development programs centered on entrepreneurship, leadership, communication, culture, diversity and inclusion, teams, and conflict management. • Provided assessment of individuals and teams with follow-up feedback and intervention tailored to client needs and assessment results, designed and conducted organizational development programs. • Organized and helmed seminars and workshops focused on identifying and addressing major industry trends and challenges, including leadership, cross-cultural and communication strategies. • Designed and delivered entrepreneurship programs to immigrants and locals, facilitated diversity and inclusion among individuals and organizations
• Concurrently managed private clinical practice
Senior Consultant/Organizational Psychologist | NORWEGIAN ROYAL MAIL | 10.2000 – 01.2003 507
3 I was part of the team of organizational psychologists who assisted the Norwegian Postal Service in reaching its goal of concurrent privatization and downsizing 1/3rd of its workforce. Large-scale OD focus. • Developed multiple programs and strategies, implementing change, crisis, and conflict-management strategies and values-based leadership to strengthen the leadership impact and organizational effectiveness during restructuring
• Achieved leadership development initiatives and stakeholder engagement via coaching and mentoring of management at all levels, balanced stakeholder objectives between owners, union and government, ensured organizational adherence to national laws and regulations • Enacted national “Inclusive Workplace” program to follow up and reduce consequences of employees on long-term leave of absense
Guest Lecturer/Professor
Served as a guest lecturer/professor on a variety of subjects for students at the graduate level for:
• Sveučilište u Zagrebu / University of Zagreb, Croatia • Universitetet i Stavanger / University of Stavanger, Norway • USC - University of Southern California, USA
• The Chicago School of Professional Psychology, USA

EDUCATION AND ACCREDITATIONS
• Bachelor of the Arts, Psychology (minor in Art) | CAL STATE NORTHRIDGE • Doctorate of Psychology | UNIVERSITY OF BERGEN, NORWAY • Post-Graduate Specialization as Industrial-Organizational Psychologist | 2008 • Red Cross Emergency Response Unit (ERU) | RED CROSS WORC, 2012 - 2018 • EMDR certified practitioner | EMDR Europe, 2014

COMPETENCIES
• Multilingual and fluent in English, Scandinavian languages (Norwegian, Swedish, Danish), both written and oral, with intermediate ability in Balkan languages (Croatian, Bosnian, Serbian), Portuguese, and French • Assessment certification in Hogan, SHL OPQ32, Cut-E batteries, JTI/MBTI, Team Effectiveness Survey, Coaching Mindset Index
• eLearning and Content Creation Systems Tools including Apple iWork, Adobe Creative Suite, AV software (Nuendo, soundBlade, Resolve, etc); familiar with R statistical analysis programming language • Microsoft Office Tools including Word, Excel, PowerPoint, and Outlook • MacOS Productivity & Planning Tools including OmniPlan, Daylite, FileMaker Pro and Keynote

EXTRACURRICULARS
• Founder/Managing Director, Sonovo Mastering
Fulfilled a youthful dream of opening my own sound studio. Identified a niche in the market and established a business strategy. Increased sales by between 50-100% annually the first 5 years. Worked with top tier Norwegian and international artists, Grammy nominated 4 times, one win. Responsible for overall growth strategy, brand identity, marketing, sales. Recruited, trained and managed staff with a specific focus on bringing more women into a male-dominated industry. Took on projects as consultant to establish other studios, including choice of gear, establish routines and train employees. Presented own work on panels and seminars at international conferences. Prepared and taught university courses for graduate level students. 508
4 • Published Photographer. Have had a number of photographs published as a freelancer in multiple international publications.
• Chinese Martial Arts, have practiced and taught for over 20 years, expanded our brand from one to six clubs across Norway, plus a satellite club in the USA. Participated in and organized events and competitions. • Classic cars. Restored a vintage Maserati with my son, wrote a blog documenting it and contributed articles to the Maserati Club magazine, Viale Ciro Menotti. One of the few people who can sync and tune multiple Weber carburetors on a V8 or V12 engine.

REFERENCES
Available upon request.
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CITY OF HERMOSA BEACH

BOARD/COMMISSION APPLICATION
Name Of Board/Commission
Name Phone Number
Address
Email
Occupation/Profession
Employer Name & Address
REFERENCES (Please List Three References)
Personal:

Professional:

Other:

COMMUNITY PARTICIPATION AND SERVICE (Past and Present)
Why do you wish to become a Commission member?
What do you feel are the duties and responsibilities of a Commission member? Kimberly Noble Program manager NIH RADx (& VentureWell) - DC/Hadley, MA (my work is remote) - Select Board/Commission - The core obligations outlined by law, which address the Commission’s role as advisors to the Council on capital improvement projects and design guidelines are clearly documented. I further believe it is any Commissioner’s duty to educate herself as necessary to be a productive contributor, and to come to the role (and meetings) prepared. An effective Commissioner will also be an open-minded and active listener to the constituency. She will discuss issues thoughtfully and articulately and will make decisions based solely in the interests of community wellbeing and improvement which I am confident in my ability to do
We live in the best little beach city, but it will only remain the best if we have smooth, safe streets, a well-functioning sewer system, clean and safe outdoor spaces, and well-maintained city structures that meet staff and public needs. So much of this important work is in the purview of Public Works through capital improvement projects and regular maintenance activities.

I’ve long had an interest in giving more to the community. The opportunity to contribute to maintaining and improving our city is one I would welcome.

(/Local) Scott Hayes, Andrea Giancoli, Rob Saemann Brian Walsh (NIH RADx - Accessibility project), Jennifer Holme (VentureWell) Community org refs: Ryan Nowicki (HBFF), Dave Fulton (LHB), Brandy Villanueva (CERT) 510
Last Updated Page 2 of 2
Do you have any current obligations or responsibilities, which could be construed as a conflict of interest with your being a board/commission member?
If yes, please explain below:

Please add below or attach a resume with your education, employment, memberships, past activities, and other experience that you feel would qualify you as a Board/Commission member.

Board/Commission Meeting Location Meeting Schedule
Building Board of Appeals City Council Chambers Second Monday of each month at 7 p.m.

Civil Service Board City Council Chambers Third Wednesday of each month at 5 p.m.

Parks, Recreation & Community
Advisory Commission
City Council Chambers First Tuesday of each month at 7 p.m.

Planning Commission City Council Chambers Third Tuesday of each month at 7 p.m. (in December meeting is on the second
Monday)
Public Works Commission City Council Chambers Third Wednesday of odd-numbered months (January, March, May, July, September, and
November) at 7 p.m.

Do you foresee any scheduling problems that might cause you to miss meetings? How long have you lived in Hermosa Beach?
Additional comments:

Signature: Date:

N/A
Through my work with Leadership Hermosa (as a student, class facilitator, and board member) I have developed a positive rapport with a broad range of the city’s leaders and active constituents.

I have also found that my communication skills, ability to distill complex situations into simple terms, and my collaborative and consensus-building approach make me an asset in every environment in which I engage. I am skilled at asking the right questions to get to the heart of an issue, often bringing clarity to muddy situations. And I am a big-picture strategist, with the ability to capably translate strategy into tactical approach. I believe these characteristics would lend themselves to success as a Commissioner. NO NO 12 yrs: ’05-09, 15-Present It would be an honor to serve. I appreciate your consideration. 9/18/2022
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WORK EXPERIENCE CONTINUED
VentureWell (continued)
I-Corps Program Manager (2012 – 2014, Hadley, MA)
Directed and scaled the high-profile NSF I-Corps® program, providing commercial readiness training for NSF grantees; Scaled the program to 5 instructional teams and 12 deliveries annually; Managed NSF program directors and faculty from 11 institutions to implement consistent and effective programming.

Highlights:
­ Managed administration of $12 M in NSF grants to NCIIA for the I-Corps® program ­ Authored manuals for course administration to facilitate program scaling. ­ Ran quarterly train-the-trainer program for university faculty in partnership with LLP cofounders, facilitating program and materials development and managing staff and vendors in event administration Hugh O’Brian Youth Leadership (Los Angeles, CA)
Director of National Programs (2008 – 2012)
Managed 17 affiliates in the western U.S; Recruited, trained and supervised affiliate corporate boards and staff to maintain corporate compliance, fundraise effectively, and execute HOBY signature youth programs; Directed the execution of 19 Seminars annually, reaching 7000 high school students.

Highlights:
­ Recruited corporate board members and program directors, increasing the year-round volunteer base by 90% ­ Revived failing HOBY affiliates in Los Angeles, San Bernardino, Alaska, Colorado, Hawaii, Oregon and Wyoming ­ Conducted program assessment and led curriculum revisions ­ Curated and expanded an online library of 400+ documents including procedural manuals, templates and tutorials ­ Wrote and administrated community and private foundation grants ranging $500-$75,000 National Federation of Independent Business (Los Angeles, CA) West Region Member Support Manager (2005 – 2008)
Worked with 4 state teams to formulate and execute annual plans and budgets that coordinated sales, media, development and public policy objectives; Organized and marketed programs to provide value to small business owners, increase brand recognition among prospective members, and achieve policy goals; Developed a network of activist members in 4 western states to advance state and national NFIB initiatives Golden Key International Honour Society (Atlanta, GA)
Associate Director for U.S. Operations (2002 – 2005)
Liaised between International Headquarters and chapters in the western U.S. (14 states – 56 universities), supervising membership recruitment, leader training and conferences; As lead Associate Director, participated in the development and implementation of the business plan and managed executive projects Skokie School District 68 (Skokie, IL)
Speech and Language Pathologist (2001 – 2002)

EDUCATION & OTHER
Leadership Hermosa Beach
Curriculum Council Member 2015-present
Board Member & Lead Class Facilitator 2017-2019
Program graduate 2015
Project Management Institute
Project Management Professional (PMP) Certification 2014 Interaction Institute
Facilitative Leadership Training 2014
American Speech-Language-Hearing Association (ASHA)
Certificate of Clinical Competency (CCC-SLP) 2002
University of Wisconsin—Madison
Master of Science in Speech-Language Pathology 2001
Bachelor of Science in Communicative Disorders 1999
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CITY OF HERMOSA BEACH

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