Hermosa Beach City Council
December 12, 2023

A technical roadmap for the proposed solutions will be provided.

A list of policies on firmware updates for the proposed solution will be provided. 229
City of Hermosa Beach

Exhibit B
Equipment and Labor
Camera Equipment
Part # Item Quantity Unit Price Total
XNP-C8252 Powered by WN7 PTZ Plus with Al, 6MP
@ 30FPS resolution, 5mm-125mm (25x)
lens, extreme WDR 120dB, Day & Night
ICR, H.265, H.264, MJPEG codec
support, Analytics events based on Al
engine: Object detection
(Person/FaceNehicle/License plate),
IVA (Virtual line/Area, Enter/Exit,
Loitering, direction, intrusion), Analytics
events: Defocus detection, Motion
detection, Tampering, Fog detection,
Audio detection, Sound classification
(with NW 1/0 box), Object
autotracking (PersonNehicle), Target
lock track, BLC, HLC, SSDR, lens heater
for water/snow removal, IP66, IK10,
NEMA4X, NEMA-TS 2(2.2.8, 2.2.9), FIPS
140-2, Power: PoE+, Operating
Temperature -40°C-+55°C(-40°F -
+131°F), (Compatible with 1/0 Box.

SPM-4210)
4 $2,576.07 $10,304.28
PNM-9002VQ Network vandal outdoor Multi-sensor
Multi-Directional dome camera,
(2MP/5MP X 4 sensors sold separately)
8MP -20MP (2MP @ 60fps or 5MP
@30fps), fixed focal lens modules, triple
codec H.265/H.264/MJPEG with
WiseStream II technology, 150dB WDR
@ 2MP or 120dB@ 5MP, defocus
detection, built in analytics, : PTZ
handover, 4x SD card, hallway view,
HLC, defog detection, DIS(Gyro
Sensor), PoE+, IP66/IK10, -40?C - +55?C
(-40?F - +131?F) 2MP Lens modules:SLA2M2400Q (2.4mm), SLA-2M2800Q (2.8mm),
SLA-2M3600Q (3.6mm), SLA-2M6000Q
(6mm) 5MP Lens modules: SLA5M3700Q (3.7mm),
SLA-5M4600Q (4.6mm), SLA-5M7000Q
(7.0mm). WHITE COLOR
3 $1,042.70 $3,128.10
SLA-5M3700Q 1/1.8" 5MP CMOS with a 3.7mm fixed
focal lens, FoV: H: 97.5?, V: 71.9? for
the PNM-9000VQ
12 $161.56 $1,938.72
230
City of Hermosa Beach

SBP-156WMW Wall/Pole mount, Material : Aluminum,
Color : White, Dimensions:
135(W)x183(H)x302(D)mm (5.31 x7
.20x11.89"), Compatible with:

I XNP-9300RW/8300RW/6400RW, QNP6320R/6250Rl6320H/6250H; Stainless Steel; Pole straps not included
4 $103.99 $415.96
SBP-100S Stainless steel mount strap (QTY of 2)
for wall pole mount: SBP-56WMW, SBP300PMW, SBP-300PM
8 $14.50 $116
SBP-276HMW Cap adapter for the PNM-9084O2,
PNM-8082VT, 1 PNM-9022V, PNM-9031
RV
3 $52.35 $157.05
SBP-00WMW1 Wall Mount Accessory (white),
Compatible with white
hanging caps
3 $55.14 $165.42
SBP-300PMW1 Pole Mount Adapter Accessory, use
with SBP-300WMW1, White color, made
of aluminum
3 $55.14 $165.42
Total $16,390.95
Camera License and Storage
Part # Item Quantity Unit Price Total
WAVE-PRO-01 WAVE Professional License. Enables
one (1) IP stream recording, includes
life-time SW upgrade. No
annual & maintenance cost required.
3 $101.21 $303.63
WAVE-PRO-04 WAVE Professional License. Enables
four (4) IP stream recording, includes
life-time SW upgrade. No
annual & maintenance cost required.
1 $404.81 $404.81
ST10000VX000
4 Seagate Surveillance 1 OTB 6 $456.74 $2,740.44
ZRM&E 2pcs Chassis Hard Drive Mounting
Plastic Rails 5.71x0.47 Inch for Cooler
Master 3.5" HDD Bracket,
Black
6 $20.65 $123.90
Total $3,572.78
Camera Network
Part # Item Quantity Unit Price Total
NBE-5AC-GEN2-
US

UBIQUITI NETWORKS NANO BEAM AC
5GHZ
10 $187.59 $1,875.90
TPE-215GI Trendnet 2.5g Poe+ Injector 7 $64.98 $454.86
WQ-66 Hinged Waterproof Box 11.81 x 11.81
x 7.15 in/ 300 x 300 x 182 mm I 3.92
lbs
7 $120.75 $845.25
Polycase PK-121 Pole Mount Kit 7 $89.92 $629.44
231
City of Hermosa Beach

DR-20 DIN Rail Kit 9.84 x 1.38 x 0.30 in/ 250 x
35 x 8 mm/ 0.19 LBS
7 $15.06 $105.42
TPE-TG82G TRENDNET 8 PORT GIGABIT POE+
SWITCH
2 $142.55 $285.10

PLATINUM
202010J
PLATINUM 202010J CAT6+ CONN
100/JAR *PM=MOD PLUG RJ45 BC C6
40 $1.70 $68
SHIPPING 1 $38 $38
TOTAL $4,301.97
Camera Cable and Conduit
Part # Item Quantity Unit Price Total
6ESOSPBK2 WAVENET CAT6E Outdoor Shielded
Cable
1 $317.92 $317.92
Wavenet 09W6EA4-6Wavenet 09W-6EA4-6 Cat6 cable
white 1000' box
1 $195.25 $195.25
4105012025 1/2 in. Dia x 25 ft. - Flexible PVC Non
Metallic UL Liquid Tight Electrical
Conduit
1 $25.17 $25.17
58133602 1/2 in. Uninsulated Liguidtight
Connector
14 $5.07 $70.98
27693 HALEX 1/2 " NM Strain Relief Cord
Connector
7 $4.28 $29.96
853428 EMT 1 /2 in. x· 10 ft. Electric Metallic
Tube (EMT) Conduit
30 $8.80 $264
051411262303 1/2 in. Electrical Metallic Tube (EMT)
Compression Connectors (5-Pack)
2 $5.98 $11.96
051411262419 112 in. Electrical Metallic Tube (EMT)
Compression Coupling (5-Pack)
5 $5.07 $25.35
Halex 26151 1/2 in. Standard Fitting Electrical
Metallic Tube (EMT) 1 Hole Straps (25-
Pack)
3 $9.40 $28.20
WSB350G Commercial Electric 1/2 in. 1-Gang
3-Holes Weatherproof Box, Gray
6 $9.59 $57.54
5173-0 BELL 1-Gang Weatherproof Cover,
Vertical/Horizontal,
Blank, Gray
1 $3.53 $21.18
112-1472CR 100 ft. 14 Gauge White Solid Copper
THHN Wire
1 $56.13 $56.13
112-1471CR 100 ft. 14 Gauge White Solid Copper
THHN Wire
1 $56.13 $56.13
112-1475CR 100 ft. 14 Gauge White Solid Copper
THHN Wire
1 $56.13 $56.13
TOTAL $1,215.90
232
City of Hermosa Beach

Labor
Item Quantity Unit Price Total
Bucket Lift (1-Day use) 10 $150 $1,500
PW LA Labor (hourly rate) 160 $165 $26,400
TOTAL $27,900
LABOR $ 27,900.00
MATERIALS $ 25,481.00
Total Amount $ 53,381.60
233
City of Hermosa Beach

Exhibit C
Project Schedule
The contractor will complete the services stated in this professional services agreement by March 29, 2024.
234
City of Hermosa Beach

Exhibit D
Federal Contract Provisions
During the performance of this Agreement, Contractor shall comply with all applicable federal laws and regulations including but not limited to the federal contract provisions in this Exhibit.

1. ACCESS TO RECORDS & RECORD RETENTION (2 C.F.R. 200.336) Contractor shall comply with 2 C.F.R. § 200.336 and provide the Federal Agency, Inspectors General, the Comptroller General of the United States, Agency, and the State of California or any of their authorized representatives access, during normal business hours, to documents, papers, books and records which are directly pertinent to this contract for the purposes of making and responding to audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to the Contractor's personnel for the purpose of interview and discussion related to the books and records. The Contractor agrees to permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. The Contractor agrees to provide the Federal Agency or its authorized representatives access to construction or other work sites pertaining to the work being completed under the contract. In compliance with the Disaster Recovery Act of 2018, the City and Contractor acknowledge and agree that no language in this contract is intended to prohibit audits or internal review by the FEMA Administrator or the Comptroller General of the United States.

2. REQUIRED CONTRACT PROVISIONS IN ACCORDANCE WITH APPENDIX II TO PART 200 – CONTRACT PROVISIONS FOR NON-FEDERAL ENTITY CONTRACTS UNDER FEDERAL AWARDS (2 C.F.R. § 200.326)

2.1 Appendix II to Part 200 (C) – Equal Employment Opportunity: Except as otherwise provided under 41 C.F.R. Part 60, if this contract meets the definition of a “federally assisted construction contract” in 41 C.F.R. § 60-1.3, then Contractor shall comply with the following equal opportunity clause, in accordance with Executive Order 11246 of September 24, 1965 entitled “Equal Employment Opportunity,” as amended by Executive Order 11375 of October 13, 1967 and implementation regulations at 41 C.F.R. Chapter 60:

2.1.1 The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action shall include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause.

2.1.2 The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, or national origin.

2.1.3 The Contractor will not discharge or in any other manner discriminate against 235
City of Hermosa Beach

any employee or applicant for employment because such employee or applicant has inquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have access to such information, unless such disclosure is in response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the Contractor's legal duty to furnish information.

2.1.4 The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and shall post copies of the notice in conspicuous places available to employees and applicants for employment.

2.1.5 The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.

2.1.6 The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.

2.1.7 In the event of the Contractor's noncompliance with the nondiscrimination clauses of this contract or with any of the said rules, regulations, or orders, this contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.

2.1.8 The Contractor will include the portion of the sentence immediately preceding paragraph (i) and the provisions of paragraphs (i) through (vii) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, including sanctions for noncompliance:

Provided, however, that in the event a Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency, the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

The applicant further agrees that it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, That if the applicant so participating is a State or local government, the above 236
City of Hermosa Beach

equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The applicant agrees that it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevant orders of the Secretary of Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency's primary responsibility for securing compliance.

The applicant further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions:

Cancel, terminate, or suspend in whole or in part this grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant; and refer the case to the Department of Justice for appropriate legal proceedings.

2.2 Appendix II to Part 200 (G) – Clean Air Act and Federal Water Pollution Control Act:

If this contract is in excess of $150,000, Contractor shall comply with the following:

2.2.1 Pursuant to the Clean Air Act, (1) Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq., (2) Contractor agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal awarding agency and the appropriate Environmental Protection Agency Regional Office, and (3) Contractor agrees to include these requirements in each subcontract exceeding $150,000.

2.2.2 Pursuant to the Federal Water Pollution Control Act, (1) Contractor agrees to comply with all applicable standards, orders or regulations issued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq., (2) Contractor agrees to report each violation to the City and understands and agrees that the City will, in turn, report each violation as required to assure notification to the Federal awarding agency and the appropriate Environmental Protection Agency Regional Office, and (3) Contractor agrees to include these requirements in each subcontract exceeding $150,000.

2.3 Appendix II to Part 200 (H) – Debarment and Suspension. This contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such Contractor is required to verify that none of the Contractor, its principals (defined at 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R. § 180.940) or disqualified (defined at 2 C.F.R. § 180.935). Contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower 237
City of Hermosa Beach

tier covered transaction it enters into. This certification is a material representation of fact relied upon by City. If it is later determined that Contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the City, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment. Contractor warrants that it is not debarred, suspended, or otherwise excluded from or ineligible for participation in any federal programs. Contractor also agrees to verify that all subcontractors performing work under this contract are not debarred, disqualified, or otherwise prohibited from participation in accordance with the requirements above. Contractor further agrees to notify the City in writing immediately if Contractor or its subcontractors are not in compliance during the term of this contract.

2.4 Appendix II to Part 200 (I) – Byrd Anti-Lobbying Act. Contractors that apply or bid for an award exceeding $100,000 must file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient who in turn will forward the certification(s) to the awarding agency.

2.5 Procurement of Recovered Materials. In the performance of this contract, Contractor shall make maximum use of products containing recovered materials that are EPAdesignated items unless the product cannot be acquired: competitively within a timeframe providing for compliance with the contract performance schedule; meeting contract performance requirements; or at a reasonable price. Information about this requirement, along with the list of EPA-designate items, is available at EPA’s Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program.

Contractor also agrees to comply with all other applicable requirements of Section 6002 of the Solid Waste Disposal Act.

3. MISCELLANEOUS PROVISIONS

3.1 The Contractor shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses of DHS agency officials without specific FEMA preapproval.

3.2 This is an acknowledgement that FEMA financial assistance will be used to fund all or a portion of this contract. The Contractor will comply with all applicable federal law, regulations, executive orders, FEMA policies, procedures, and directives.

3.3 Contractor acknowledges that 31 U.S.C. Chapter 38 (Administrative Remedies for False Claims and Statements) applies to the Contractor’s actions pertaining to this contract.

3.4 The Federal Government is not a party to this contract and is not subject to any obligations or liabilities to the City, Contractor, any subcontractors or any other party pertaining to any matter resulting from the contract.

3.5 General and administrative expenses shall be negotiated and must conform to the Cost Principles in 2 C.F.R. Part 200. Profit shall be negotiated as a separate element of the cost.

To establish a fair and reasonable profit, consideration must be given to the complexity of the work to be performed, the risk borne by the Contractor, the Contractor's investment, the amount 238
City of Hermosa Beach

of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work. Any agreement, amendment or change order for work performed on a time and materials basis shall include a ceiling price that Contractor exceeds at its own risk.
239
City of Hermosa Beach

Exhibit E - Security Camera Locations
Please see the following page.
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0.1 THIS MAP IS NOT TO BE USED FOR NAVIGATION
WGS_1984_Web_Mercator_Auxiliary_Sphere

0.1 Miles
Notes
© City of Hermosa Beach
Legend
The map generated is for reference only. Data layers that appear on this map do not have survey grade accuracy but represent close approximation. 0 0.04
1: 2,257
City of Hermosa Beach RFP23-007 Location Map
City Boundary
Camera Location
Single Camera

Camera Location
Two Cameras 241

0.1 THIS MAP IS NOT TO BE USED FOR NAVIGATION
WGS_1984_Web_Mercator_Auxiliary_Sphere

0.1 Miles
Notes
© City of Hermosa Beach
Legend
The map generated is for reference only. Data layers that appear on this map do not have survey grade accuracy but represent close approximation. 0 0.04
1: 2,257
City of Hermosa Beach RFP23-007 Location Map
City Boundary
Camera Location
Single Camera

Camera Location
Two Cameras 242
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0744
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023
RESOLUTION AUTHORIZING THE ACCEPTANCE OF $40,000 FROM THE CALIFORNIA

DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL, ALCOHOL POLICING PARTNERSHIP

PROGRAM
(Police Chief Paul LeBaron)
Recommended Action:

Staff recommends City Council:

1. Adopt a resolution authorizing the acceptance of $40,000 from the California Department of Alcoholic Beverage Control, Alcohol Policing Partnership Program (Attachment 2);

2. Add estimated revenue of $40,000 in the Grant Fund; and

3. Appropriate $40,000 in the Grant Fund for operations to reduce alcohol-related incidents.

Executive Summary:

For the past several years, the Hermosa Beach Police Department (HBPD) collaborated with the Manhattan Beach Police Department, El Segundo Police Department, and the California Department of Alcohol Beverage Control (ABC) to educate and conduct enforcement pertaining to alcohol related laws, regulations, and criminal and civil penalties.

This year, the Hermosa Beach and Manhattan Beach Police Departments applied for a $40,000 grant from the ABC Office of Traffic Safety’s (ABC-OTS) Grant Program, with the Hermosa Beach Police Department leading the operations. Staff recommends City Council adopt a resolution authorizing the acceptance of $40,000 from ABC to reduce alcohol-related incidents.

Background:

In September 2023, HBPD applied for, and was awarded, a $40,000 grant aimed at reducing alcohol related incidents in the Cities of Hermosa Beach and Manhattan Beach. For the past several years, the Hermosa Beach, Manhattan Beach, and El Segundo Police Departments have applied jointly to the ABC Grant Assistance Program, rotating between each agency to oversee operations. Due to limited staffing, the El Segundo Police Department did not join the Hermosa Beach and Manhattan Beach Police Departments for the 2023-2024 ABC-OTS Grant Program application process.

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Past Council Actions
Meeting Date Description
June 15, 2017 City Council approved the execution and appropriation of $60,444 in grant funds for the Department of Alcoholic
Beverage Control Grant Assistance Program.

Discussion:

The Hermosa Beach Police Department, along with the Manhattan Beach Police Department, is committed to enforcing and educating ABC-licensed establishments of issues associated with alcohol sales. Both agencies are committed to ensuring the safety of their residents and protecting the quality of life in its community. If accepted, HBPD would administer the grant and request reimbursement on behalf of both cities. HBPD would assign a Police Sergeant to oversee operations, which would include the Minor Decoy Program, Shoulder Tap Program, IMPACT Program, and Holiday Enforcement.

The Minor Decoy Program is intended to reduce the number of licensees selling alcoholic beverages to minors. The Shoulder Tap Program targets adults that furnish alcoholic beverages to minors.

IMPACT (Informed Merchants Preventing Alcohol-Related Crime Tendencies) inspections focus on licensee education. Officers look for loitering, litter, graffiti, posted signs, lack of food service in restaurants, illegal weapons, or other violations. The Holiday Enforcement operations consist of working general undercover and high-profile enforcement targeting underage drinking, sales/furnishing to minors, sales to obviously intoxicated patrons, and other related violations. The dates for the Holiday Enforcement operations include major holidays such as, but not limited to, Halloween, New Year’s Eve, and St. Patrick’s Day, along with NHTSA/OTS AVOID Campaign dates, which aim to reduce youth involved fatal and/or injury crashes.

The ABC-OTS Grant Program requires grantees to conduct operations that include the described programs and a press release statement regarding the start and conclusion of some operations. The following are the goals the Hermosa Beach Police Department stated in its Letter of Interest (Attachment 1):
· The Sergeant and/or Officer assigned to the grant detail would attend the one-day training session.
· Staff assigned to grant detail would prepare press releases to announce the start and conclusion of each Minor Decoy and Shoulder Tap Operation. · The departments would conduct four Minor Decoy Operations and four Shoulder Tap Operations to detect, prosecute, and deter the sale of alcohol to minors. · The departments would conduct two IMPACT inspections, where officers would visit licensed City of Hermosa Beach Page 2 of 4 Printed on 12/7/2023
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· The departments would conduct two IMPACT inspections, where officers would visit licensed establishments to ensure compliance with ABC regulations and attempt to gain voluntary compliance for observed violations.
· The departments would conduct Holiday Enforcement on Halloween, New Year’s Eve, St.

Patrick’s Day, Cinco de Mayo, Memorial Day weekend, and 4th of July, where officers will conduct enforcement targeting underage drinking, sale/furnishing to minors, sales to obviously intoxicated patrons, and other related violations.

Staff recommends City Council adopt the proposed resolution authorizing acceptance of $40,000 from the California Department of Alcoholic Beverage Control and to authorize the City Manager, or her designee, to execute all documents related thereto.

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:

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

Policies:
· 5.1 Crime deterrence. Regularly evaluate the incidence of crime and identity and implement measures to deter crime.
· 5.2 High level of response. Achieve optimal utilization of allocated public safety resources and provide desired levels of response, staffing, and protection within the community. · 5.5. Crime prevention outreach program. Offer youth programs, recreation opportunities, educational programs, and other services to encourage crime prevention behavior. · 5.7 Collaborate with neighboring jurisdiction. Cooperate and collaborate with neighboring jurisdictions and social services to maximize public safety and emergency services. · 5.9 Police and Fire enforcement grants. Pursue grant funding and other outreach programs to minimize and abate nuisances.

Fiscal Impact:

The California Department of Alcoholic Beverage Control, Alcohol Policing Partnership Program accepted the Hermosa Beach Police Department’s funding request of $40,000 for operations to reduce alcohol-reducing incidents.

If approved, estimated revenue of $40,000 would be added to the Grant Funds and $40,000 would be appropriated in the Grant Fund for the above operations. The project coordinator would track total hours worked by officers in both agencies for these operations and would submit a request for City of Hermosa Beach Page 3 of 4 Printed on 12/7/2023
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REPORT 23-0744
reimbursement to ABC.

Attachments:

1. ABC-OTS Enforcement Grant Letter of Interest

2. Draft Resolution

3. Link to June 15, 2017 City Council Meeting
Respectfully Submitted by: Joanne Loeza, Management Analyst Concur: Landon Phillips, Police Captain
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
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CITY OF HERMOSA BEACH
RES-23-XXXX

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA AUTHORIZING THE ACCEPTANCE OF $40,000 FROM THE

CALIFORNIA DEPARTMENT OF ALCOHOLIC BEVERAGE CONTROL,

ALCOHOL POLICING PARTNERSHIP PROGRAM
WHEREAS, The City of Hermosa Beach desires to reduce alcohol related incidents in Hermosa Beach and inform the businesses in Hermosa Beach through the use of enforcement strategies and educational affairs, and WHEREAS, the opportunities provided to the City of Hermosa Beach by the grant funding through the Department of Alcoholic Beverages (“ABC”) include the support of targeted operations, such as the Minor Decoy and Shoulder Tap programs, IMPACT (Informed Merchants Preventing Alcohol-Related Crime Tendencies) inspections and Holiday Enforcement, and
WHEREAS, ABC has offered, and the City of Hermosa Beach desires to accept, Alcoholic Policing Partnership (APP) grant funds from ABC in an amount of Forty-Thousand Dollars ($40,000) in order to fund such enforcement during the October 2023 to August 2024 time period.

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

SECTION 1. The City Manager, or her designee, is authorized to accept the grant, and to negotiate, enter into, execute, and deliver a State of California Standard Agreement in the amount of forty-thousand dollars ($40,000), and any and all other documents deemed necessary or appropriate to evidence and secure Department of Alcoholic Beverage Control Alcohol Policing Partnership Program grant, the City of Hermosa Beach’s obligation related thereto, and any extensions or amendments thereto.

SECTION 2. The grant funds received hereunder shall not be used to supplant expenditures controlled by the City Council and this award is not subject to local hiring freezes.
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SECTION 3. It is agreed that any liability arising out of the performance of this contract, including civil court actions for damages, shall be the responsibility of the grant recipient and the authorizing agency. The State of California and ABC disclaim responsibility for any such liability.

SECTION 4. The City Clerk shall certify too the adoption of this Resolution, and thenforth and thereafter the same shall be in full force and effect.

PASSED, APPROVED, and ADOPTED on this 12th day of December, 2023.

Mayor Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Patrick Donegan
City Clerk City Attorney
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Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0730
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023

APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH

LOS ANGELES CENTERS FOR ALCOHOL AND DRUG ABUSE TO PROVIDE MOBILE MENTAL

HEALTH AND CRISIS RESPONSE SERVICES
(Deputy City Manager Angela Crespi)
Recommended Action:

Staff recommends City Council authorize the City Manager to enter into a Professional Services Agreement, attested to by the City Clerk and approved by the City Attorney, with Los Angeles Centers for Alcohol and Drug Abuse to provide mobile mental health and crisis response services for a term beginning December 13, 2023 an ending September 29, 2024 at a not-to-exceed amount of $787,716 (Attachment 1-Scope of Services and Budget).

Executive Summary:

With the assistance of United States Representative Ted Lieu, the City of Hermosa Beach secured $1,000,000 in Federal funding to develop a Mobile Crisis Response Pilot Program to provide an evidenced-based response model for mental health and behavior-related calls primarily involving the City's unhoused residents.

In order to move forward with the pilot program, and adhere to the grant performance schedule, staff recommends City Council approve a professional services agreement with Los Angeles Centers for Alcohol and Drug Abuse (L.A. CADA) to provide mobile mental health and crisis response services for a term beginning December 13, 2023 and ending with the closure of the grant period on September 29, 2024. If approved, the agreement would carry a not-to-exceed limit of $787,716 and would be fully covered by the Federal grant with no matching fund requirement.

Background:

The City of Hermosa Beach is an active partner in a regional approach addressing homelessness.

Through the Beach Cities Partnership, unhoused individuals within the City of Hermosa Beach receive consistent and ongoing outreach services aimed at providing them with resources needed to move from their present situation into permanent housing. These services are provided through a beach cities contract with Harbor Interfaith Services.

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Based on the January 2022 Greater Los Angeles Homeless Count, the City of Hermosa Beach has a homeless count of approximately 34 individuals. The case managers of Harbor Interfaith Services work very hard to establish a rapport with these individuals and ultimately help them progress through the steps to housing. While each of these individuals have specific hardships, many share the common challenge of dealing with mental illness. To address these issues, Harbor Interfaith Services coordinates with the LA County Department of Mental Health to problem-solve specific individuals experiencing homelessness.

While the City’s partner agencies work diligently behind the scenes, the Hermosa Beach Police Department is called upon daily by the community to address non-emergency, non-medical, and noncriminal calls based on community observations and interactions. Not only does a police response divert safety personnel from their primary duties, it does little to address the root cause of the mental health issue behind the call.

In an effort to connect individuals with the mental health and crisis stabilization services they need, while reducing calls to the Hermosa Beach Police Department, staff began its efforts to secure funding to pilot a program that would create a two-person mobile response team consisting of one clinically-trained counselor and one licensed emergency medical technician (EMT) or peer supporter.

It was staff’s intent to model the program after the successful CAHOOTS Program of Eugene, Oregon and apply modifications to fit the City’s operational and characteristic needs.

After reaching out to state and federal elected representatives and submitting requests for community funding, the City was notified in early 2023 that United States Representative Ted Lieu was successful in securing $1,000,000 in Federal funding. The funding was provided to the City specifically for the purpose of engaging and supporting a highly trained and skilled civilian team to respond, instead of the police department, when the calls involve non-emergency and non-medical situations that require mental health services.

After receiving notice of funding, City staff worked with the Substance Abuse and Mental Health Services Administration (SAMHSA) to develop a program and budget that meets national guidelines for behavioral health crisis care. In September 2023, the City received its Notice of Award approving the framework of the pilot program and proceeded with its efforts to identify a mental health services provider capable of developing a team and launching services that match the Federally approved pilot program.

Past Council Actions
Meeting Date Description
June 13, 2023 City Council adopted the Fiscal Year 2023-24 Budget including acceptance and appropriation of $1,000,000 in Federal grant funding for the Mobile Mental Health Pilot Project. City of Hermosa Beach Page 2 of 6 Printed on 12/7/2023 powered by Legistar™255
Staff Report
REPORT 23-0730 Meeting Date Description
June 13, 2023 City Council adopted the Fiscal Year 2023-24 Budget including acceptance and appropriation of $1,000,000 in Federal grant funding for the Mobile Mental Health Pilot Project.

Discussion:

Service Provider Identification
Having observed other public entities, including the Los Angeles County Department of Mental Health and the San Gabriel Valey Council of Governments, issue request for proposals (RFPs) to solicit a service provider with no success, staff identified that taking the same approach would likely not result in a different result and would be detrimental to the grant performance timeline and delivering services to the community. Instead, the City of Hermosa Beach and the South Bay Cities Council of Governments (SBCCOG) worked collaboratively to identify service partners with experience and capability of providing the mobile mental health program model approved for the Hermosa Beach pilot program.

In Orange County, an organization named BeWellOC has great success partnering with a number of cities to deploy mobile response teams. Meetings with BeWellOC to discuss its model and lessons learned proved valuable to increasing the staff team’s collective understanding of providing mobile mental health services. Ultimately, the organization operates under a slightly different staffing model and expressed that it is focused on its services in Orange County and would not be able to explore a Los Angeles County expansion of services at this time.

In the City of West Hollywood, its City Council awarded a sole source agreement with HathawaySycamores, a non-profit provider selected by Los Angeles County Mental Health for Service Planning Area (SPA) 4 Alternative Crisis Response Services. To explore this option, Hermosa Beach City staff and SBCCOG staff met with both City of West Hollywood and Hathaway-Sycamores staff. After great meetings where programmatic details were shared, staff determined that the operational model offered did not meet the requirements of the City’s federally approved grant funding.

After issuing an RFP soliciting a service provider for its mental health and crisis response pilot program and receiving no responses in early 2022, the San Gabriel Valley Council of Governments (SGVCOG) approved a sole source agreement with L.A. CADA. The pilot program launched in July of 2022 and has since expanded to additional cities. The model developed and provided by L.A.

CADA and SGVCOG is the same model approved for the City of Hermosa Beach pilot program. In speaking with SGVCOG staff, they are very happy with the services provided by L.A. CADA and its program is becoming a model in Los Angeles County.

The final entity contacted regarding the required services was an organization called Brain Health.

This entity was selected to contract with Los Angeles County Mental Health for Service Planning Area City of Hermosa Beach Page 3 of 6 Printed on 12/7/2023
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This entity was selected to contract with Los Angeles County Mental Health for Service Planning Area (SPA) 8 Alternative Crisis Response Services. It is staff’s understanding that, at this time, the program is still in development. Attempts to reach the provider were unsuccessful.

Based on staff’s efforts to identify and secure a highly qualified provider capable of quickly mobilizing to provide services to the City of Hermosa Beach Mobile Mental Health and Crisis Response Pilot program within the grant performance period, only one provider was deemed qualified. Therefore, in accordance with Hermosa Beach Municipal Code (HBMC) Chapter 3.12.070 staff recommends dispensing with formal bidding procedures and negotiating a sole source agreement with L.A. CADA.

L.A. CADA is a substance use and behavioral treatment provider licensed and certified by the State of California Department of Health Care Services and the County of Los Angeles Department of Public Health-Substance Abuse Prevention and Control. The Agency treats persons with both addiction and behavioral problems by providing client-centered, trauma-informed, and recoveryoriented services across a wide continuum of care and treatment, including outpatient, intensive outpatient, and residential programs. In addition to working with SGVCOG, L.A. CADA successfully worked with the City of Alhambra to implement a crisis response pilot to complement existing robust outreach and engagement efforts to improve outcomes for persons experiencing homelessness in the community. L.A. CADA has successfully connected clients in the City of Alhambra to the appropriate interim and permanent housing solutions to support the City’s homeless services system.

Hermosa Beach Pilot Program
The $1,000,000 grant funding would be allocated in the following manner-$867,000 for contractual services; $112,000 for patient care; and approximately $24,000 for supplies and administration. The item for Council consideration at this time is authorization to enter into a professional services agreement with Los Angeles Centers for Alcohol and Drug Abuse to provide mobile mental health and crisis response services through the City’s Mobile Mental Health Pilot Project.

If approved, the City of Hermosa Beach and L.A. CADA would work cooperatively to create twoperson mobile response teams consisting of one clinically-trained counselor and one licensed emergency medical technician (EMT) or peer supporter and to launch a pilot program that would divert mental health and crisis calls originating either through the 911 system or the non-emergency police department line. The calls would be routed to the alternate response model consisting of a civilian team trained and equipped to de-escalate situations and work in cooperation with various service partners including the Hermosa Beach Police Department, Los Angeles County Fire Department, Harbor Interfaith Services, Beach Cities Health District, and Los Angeles County Mental Health.

The calls eligible for diversion and alternate response would include non-medical, non-criminal, and non-safety calls such as mental health related public assists; welfare checks; and mental health City of Hermosa Beach Page 4 of 6 Printed on 12/7/2023
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non-safety calls such as mental health related public assists; welfare checks; and mental health transports. The program would deliver onsite mental health services and basic first aid. The mobile team would be trained to provide de-escalation and crisis stabilization services, mental health education, mental health treatment referrals, and follow-up support and wellness checks. For the City’s unhoused population, the services would support existing efforts.

The LA County Department of Mental Health is currently in the process of developing program requirements for their expanded Psychiatric Mobile Response Teams (PMRT) and guidance for citybased programs. The program requirements would follow the National Guidelines for Behavioral Health Crisis Care by the Substance Abuse and Mental Health Services Administration (SAMHSA). In developing the pilot program, staff would take care to follow both Los Angeles County and SAMHSA guidance so that the pilot program may have the best opportunity for success and so that in the future it may be scaled and duplicated to address mental health and homelessness in the region.

The South Bay Cities Council of Government and the Beach Cities Health District are interested in assisting the South Bay region in development of a standing program for mobile mental health response. To aid in those efforts, the City would evaluate the pilot program’s effectiveness in reducing demand for police services and securing help for people experiencing homelessness to determine whether the model can be used more widely to address mental health issues and homelessness in the region.

If approved, City staff would finalize programmatic and contract details with L.A. CADA under the guidance and approval of Substance Abuse and Mental Health Services Administration (SAMHSA).

Upon execution of the contract, L.A. CADA would begin its recruitment and hiring process with a goal of launching services in February 2024. Services under the pilot project may continue until the grant performance end date of September 29, 2024.

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 4. A leader and partner in the region.

Policy:
· 4.1 Regional governance. Play an active role in the South Bay Cities Council of Governments, the Southern California Association of Governments and other regional agencies to protect and promote the interests of the City.

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

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

Fiscal Impact:

The City Council approved the acceptance and appropriation of $1,000,000 of Federal grant funds for the Hermosa Beach Mobile Mental Health and Crisis Response program in Fiscal Year 2023-24.

Approximately $800,000 of the awarded grant funds were allocated for a contractual service provider.

To quickly operationalize the program and facilitate start-up expenses to secure vehicles and hiring staff, the City would allow an up-front transfer of $100,000 to L.A. CADA, which would be drawn down by invoice in accordance with contract terms. The City would receive reimbursement for approved program costs by submitting the required paperwork to Substance Abuse and Mental Health Services Administration (SAMHSA) as the administering Federal agency.

Agreement Request
Request Amount FY 2023-24 Budget Dept. Account # Total Contract Amount $787,716 150-1201-4201 $787,716
Attachments:

1. Scope of Services and Budget Proposal

2. Link to June 13, 2023 City Council Staff Report
Respectfully Submitted by: Angela Crespi, Deputy City Manager Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
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L.A. CADA PROPOSAL FOR CITY OF HERMOSA BEACH MOBILE MENTAL HEALTH CRISIS RESPONSE TEAM PILOT PROGRAM – 2024
EXHIBIT A – SCOPE OF SERVICES

Description of Services
L.A. CADA will provide provide an evidenced-based response model for mental health and behavior-related calls primarily involving the City's unhoused residents. The pilot program will serve individuals within the City of Hermosa Beach and will be limited to calls within the City’s geographic limits, encompassing 1.4 square miles but lessons learned and data will serve to inform future Mobile Crisis Outreach Teams (MCOTs) in the SPA 8 region.

Services will include, but are not limited to:

1. Welfare checks;

2. Basic immediate needs such as water, food, and clothing;

3. Triage, screening, and assessment;

4. Emotional support;

5. Crisis intervention and de-escalation;

6. Risk assessment;

7. Risk of harm to self (e.g. eating disorders, non-compliance with taking medications);

8. Suicide prevention and intervention;

9. Psycho-social support;

10. Peer support services;

11. Referral to local area resources including coordination with medical and behavioral health services and homeless services providers and resources, including housing assistance referrals;

12. Priority access to L.A. CADA’s substance use disorder treatment programs based on the level of acuity/level of care according to the American Society for Addition Medicine (ASAM) assessment. Placement at L.A. CADA treatment facilities cannot be guaranteed. If treatment beds are not available at the time, L.A. CADA will make appropriate referrals and/or service connections to other providers; and

13. Mental health follow-ups and other program requirements will be provided according to Guidelines for Behavioral Health Crisis Care by the Substance Abuse Mental Health Services Administration (SAMHSA).

The calls eligible for diversion and alternate response will include non-medical, non-criminal, and non-safety calls such as mental health related public assists; welfare checks; and mental health transports. It is the intent of the program to be able to deliver onsite mental health services and to place patients on an emergency 72- hour (5150) hold, if necessary, without the response or support by law enforcement, fire department, or emergency medical services. This will serve the goal of reducing over-utilization of City resources, especially for non-emergency repeated consumers of services. Placement on 5150 holds will only be made upon assessment and recommendation by a Lanterman-Petris-Short (LPS) designated clinician. However, one of the goals of this program is ultimately to avoid having to place patients on 5150 holds if at all possible.

The program will divert mental health and crisis calls originating either through the 911 system or the non-emergency line of the Hermosa Beach Police Department. The calls will be routed either by mobile phone or radio to the civilian alternate response team.

L.A. CADA and the City will collaborate to develop specific policies, procedures, and protocols 260
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governing the all aspects of the alternative crisis response program, including, but not limited to, dispatch protocols, exclusionary criteria, etc. These program policies and procedures will be agreedupon by all Parties and, once finalized, will become part of the Professional Services Agreement executed thereafter.

L.A. CADA will also provide follow-up services, in coordination with partner agencies. These could include recommendations for utilizing the MCOT during time periods in which the team is not responding to calls. L.A. CADA will develop policies, procedures, and protocols, and will execute Memoranda of Understanding as necessary, with partner agencies, including but not limited to County departments and service providers, to ensure call follow-up. Policies and procedures for follow-up at the following levels should be included:

1. Short Term Follow Up: Offered to individuals at high risk (i.e., a caller with thoughts of self-harm, has an actual plan and does not meet criteria for an emergency rescue).

The follow-up or call is made within 24 hours after the initial call.

2. Standard Follow Up: Offered to high risk individuals (i.e., a caller that has thoughts of self- harm, but has recent hospitalizations and exposure to trauma). The follow-up call or calls are made 1-3 days after the initial crisis call.

3. Extended Follow Up: Offered to individuals who are high risk and/or who have received standard follow-up care and need continued assistance (e.g. developing a safety plan and/or connecting to resources). The follow-up calls are made 1 week after the last call.

L.A. CADA will assist the City in ensuring that the program follows both Los Angeles County and SAMHSA guidance so that the pilot program may have the best opportunity for success and so that in the future it may be scaled and duplicated to address mental health and homelessness in our region. It is the intent of L.A. CADA and the City that the pilot program will also be structured in a manner that would position the program to qualify for Medi-Cal, Medicare, or private insurance reimbursement, subject to all the approvals, licensure, certifications, and/or accreditations necessary to achieve such qualification. It is understood that funding of the program via Medi-Cal, Medicare, or private insurance reimbursement is not guaranteed.

L.A. CADA will work with Harbor Interfaith to identify and serve those individuals who have the greatest needs in a responsive way. L.A. CADA will work collaboratively among multiple stakeholders, including City staff, CES providers, and SPA8 providers, and the South Bay Cities Council of Governments to coordinate and leverage homeless services, provide more comprehensive coverage, and identify all target individuals.

To the extent possible, L.A. CADA will have the ability to connect with the Los Angeles County Coordinated Entry System, Electronic Health Record (EHR) System or other centralized and secure data collection portal. It is the intent of L.A. CADA to leverage Measure H, County, or other funding and relationships (to the extent they are available to L.A. CADA) for motel vouchers, rapid re-housing, supportive services, crisis, and bridge housing, interim housing, permanent housing, and other service categories.
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In addition to English, L.A. CADA will make its best effort to provide services to clients in Spanish, Vietnamese, Korean, and Chinese (Mandarin and Cantonese), subject to availability of qualified staff.

Once selected, L.A. CADA will work to assist with community education and outreach or communication with City leadership or governing bodies, as necessary.

This Scope of Services includes the minimum work to be accomplished. Once selected, this Scope of Services may be modified and refined during negotiations with the City.

Teams and Operations
The Hermosa Beach Mobile Crisis Outreach Teams (MCOTs) will provide services with two teams. ● Team 1:
o The City Hermosa Beach
• Monday – Thursday, 9:00 AM – 8:00 PM
● Team 2:
o The City of Hermosa Beach
• Saturday – Tuesday, 11:00 AM – 10:00 PM
Team 1 will consist of at least a 1.0 FTE licensed eligible behavioral health clinician (regulated by the California Board of Behavioral Sciences), a 1.0 FTE culturally sensitive Peer Support Specialist/EMT, a 0.5 FTE Substance Use Disorder Counselor, and 0.5 FTE Case Manager.

Team 2 will consist of at least a 1.0 FTE licensed eligible behavioral health clinician (regulated by the California Board of Behavioral Sciences), a 1.0 FTE culturally sensitive Peer Support Specialist/EMT, a 0.5 FTE Substance Use Disorder Counselor, and a 0.5 FTE Case Manager.

The above-listed hours of operation for Teams 1 and 2 are merely illustrative and are subject to further negotiation and flexibility according to the needs of the City and L.A. CADA.

Each MCOT will deliver services using vehicles equipped with the necessary supplies to operate the program and provide basic needs assistance for clients. The assigned vehicles will provide a safe space to sit with, talk to, and provide care for clients and the necessary supplies to provide the care services required by the program, including basic needs provisions, personal protective equipment, and basic first aid supplies. L.A. CADA understands that it is responsible for all operational and maintenance costs of the vehicles. The vehicles will include basic provisions to support clients and a safe clean space to sit with, talk to, and provide transport for compliant clients. Vehicles will be available to the program during agreed-upon hours of operation.

For clients who need additional services, the MCOTs can use the assigned vehicle to transport clients directly to a licensed facility, other service provider, or family residence. MCOT staff will provide a warm hand-off to needed community service providers in close proximity to the client's desired location. L.A. CADA understands that direct communication with providers may include a 262
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conference call to arrange follow- up crisis support and an appointment for client follow-up support (as needed). Each client will be made aware of and asked to sign informed consent to the follow-up arrangement. As part of the implementation plan, L.A. CADA shall work with the participating cities to develop approaches to balance MCOT’s services within a city and transport of clients to other locations.

Final program plans addressing confidentiality, participant protection, and adverse events and final forms such as consent forms will be agreed upon by the City and L.A. CADA.

Project Data
L.A. CADA will assist the City in gathering and monitoring performance data for the purpose of measuring ongoing performance and project outcomes. L.A. CADA will be available for weekly meetings during the first month of the program and then monthly thereafter. The meetings will be held to coordinate and troubleshoot the delivery of services offered through the program.

The selected providershall provide monthly reports with data outlining clientsserved and the types of services provided. Information to be included in the monthly reports includes, but is not limited to, the following:

1. Number of individuals engaged;

2. Number of street outreach contacts;

3. Percentage of individuals engaged who are placed into interim housing;

4. Percentage of individuals engaged who are referred to and placed into permanent housing;

5. Number of referrals to support services;

6. Percentage of individuals engaged who access one or more supportive services; and

7. Overall improvements in physical health, mental health, and substance use of the individuals served.

Other data as requested may be included in the monthly reports. It is understood that the abovelisted types of information and data that may be included in the required reports is subject to further negotiation and agreement between L.A. CADA and the City.

Project Goals/Objectives
Goal 1: Decrease the number of unduplicated individuals experiencing homelessness in Hermosa Beach from 34 to 0
• Objective 1.1: Ensure that all 34 unduplicated participants are offered mobile mental health and crisis response services, relative to their specific presenting problem or crisis, either by call for response or proactive contact, during the project performance period.
• Objective 1.2: Regardless of insurance coverage or ability to pay, ensure that all 34 unduplicated participants are assessed and offered and/or connected to immediate mental health and crisis stabilization services until connection to ongoing social 263
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services are secured.
• Objective 1.3: Provide follow-up with all service recipients within 24 hours for individuals classified as high risk and within three days for all other individuals. • Objective 1.4: Provide follow-up to all service recipients within one week to ensure proper connection to, and encourage, acceptance of after care and ongoing social and medical services.

Goal 2: Establish an alternate response model that safely diverts the estimated 25% of annual qualified non-medical, non-criminal, and non-safety mental health and crisis calls from the Hermosa Beach Police Department to a mobile mental health and crisis response team. • Objective 2.1: Provide a response time that meets or exceeds the Hermosa Beach Police
Department average response time for all diverted mobile mental health and crisis calls. • Objective 2.2: Ensure that the Mobile Crisis Response Pilot Program team reports feeling completely safe or is able to rapidly obtain the support of Hermosa Beach Police Department on all calls for service.
• Objective 2.3: Ensure that all individuals receiving services related to the project during the project performance period report are being satisfied with the services received.
• Objective 2.3: Ensure that all third parties initiating services related to the project during the project performance period report are being satisfied with the services received.

Notwithstanding the above-referenced goals and objectives, it is understood that the purpose of this program and proposal is to provide alternative crisis responses in the form of Hermosa Beach MCOTs. The goals and objectives of this program, including but not limited to, the provision of homeless services, is subject to further negotiation and agreement between L.A. CADA and the City.

Schedule of Work
The contract is expected to be executed in December 2023, with services starting in February 2024.

The project will end on September 29, 2024.

Contract Type and Compensation
The compensation for the work identified in this Scope of Services will be as follows:
• Labor Costs will be invoiced on a flat-rate basis provided that the relevant positions is filled.

The invoiced amounts for labor will be based on the specific budgeted rates for each position, 264
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as agreed-upon by L.A. CADA and the City, and as reflected in the attached Budget, Exhibit B. • Operational Costs (i.e., Direct Costs) will be compensated on a time and materials (cost reimbursement) basis, according to monthly invoicing that reflects the actual costs incurred for these expenditures.

The final Professional Services Agreement will reflect these compensation terms and will be based on a monthly not-to-exceed amount, as agreed upon by the City and L.A. CADA and reflected in the attached Budget, Exhibit B.

Staffing Pattern
Program/Site Manager. This position is 50% FTE.

Program Supervisor. This position is 25% FTE.

Case Manager. This position is 75% FTE.

Administrative/Reporting. This position is 50% FTE.

Two (2) Mental Health Clinicians. Each position is 100% FTE.

Two (2) Peer Support/EMT. Each position is 100% FTE.

SUD Counselor. This position is 100% FTE.

Staffing vacancies will be filled within a reasonable timeframe, subject to further negotiation and agreement between L.A. CADA and the City.

Staff will be professionally trained in the delivery of trauma-informed, person-centered, and culturally responsive care using evidence-based practices endorsed by the National Alliance to End Homelessness, SAMHSA, the Centers for Disease Control and Prevention (CDC), and the National Alliance on Mental Illness (NAMI).

Organization Qualifications, Related Experience, References Los Angeles Centers for Alcohol and Drug Abuse (L.A. CADA) is a nonprofit 501(c)3 behavioral healthcare provider established in 1971 to serve Los Angeles County. Our mission is to save lives, unite families, and protect the community by providing access to non-profit, evidence-based behavioral services that address the needs of vulnerable and disadvantaged populations. L.A.

CADA is a BIPOC-led nonprofit agency (Black, Indigenous, People of Color) dedicated to equity for and BIPOC leadership by the marginalized communities we serve. We ground our services in social justice, healthcare equity, and adherence to CLAS National Standards for Culturally and Linguistically Appropriate Services in Health and Health Care, working to promote cultural humility into all agency services. L.A. CADA's service system is trauma-informed on every level. As a local agency, we have expertise in local homeless and frequently related behavioral health issues. 265
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The key to L.A. CADA’s homeless services approach is the utilization of non-judgmental, trauma informed, recovery-oriented, and culturally/linguistically-appropriate multi-disciplinary teams. Our teams include Outreach Workers, Mental Health Clinicians, Case Managers, and skilled medical personnel.

Together, they have the skills needed to engage and screen homeless individuals, and link them to critical services for targeted and intensive care coordination. Service linkage for this project will include priority placement in L.A. CADA’s extensive continuum of care: emergency housing beds, transitional housing beds, supportive services, including linkage to health care, permanent housing, and workforce development services.

As noted, L.A. CADA staff will use the evidence-based practices required to provide the highest quality and most effective response for homeless residents with behavioral health issues. The EBPs or elements of the EBPs to be used in this program are:
● Motivational Interviewing
● Eight Principles of Harm Reduction
● Principles of Trauma-Informed Care
● Intensive Case Management
● Housing First I Low Barrier Access
● LGBTQ+-Affirming and LGBTQ+ Sensitive Care
● Cognitive Behavioral Therapy
● Assertive Community Treatment
● Risk-Need-Responsivity model for offender assessment and rehabilitation ● Relapse Prevention Therapy
● 12 Step Facilitation Therapy
● CLAS National Standards for Culturally and Linguistically Appropriate Services in Health and Healthcare
● Medication Assisted Treatment for Opioid Use Disorder ● Peer Recovery Support
L.A. CADA’s broad continuum of evidence-based care for homeless services and alcohol, drug, and mental health disorders includes:
• 232 state-licensed residential treatment beds
• 16 state-licensed residential beds for mental health crisis stabilization • 244 Recovery Bridge Housing (RBH) beds for the homeless (including 45 beds in LGBTQ+ Affirming or exclusive programs; 32 beds co-located in the Los Angeles Mission on Skid Row; and 71 RBH beds in the San Gabriel Valley) • Over 500 state-certified outpatient slots
• Jail-based treatment in Men’s Central Jail
• Court-based treatment referral and navigation (Alhambra, Pasadena, Bellflower, Downey, Long Beach, Norwalk, and East L.A. Municipal Courts, as well as L.A.’s “Rainbow” Court, the nation’s only LGBTQ+ Affirming Community Collaborative Court)
• School-based treatment in El Rancho School District and Whittier Unified School District 266
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We are headquartered in SPA 7 and our program facilities are located in Alhambra, Pasadena, Altadena, Bellflower, Pico Rivera Santa Fe Springs, South Gate, Whittier, downtown Los Angeles, East Los Angeles, Hollywood, and Long Beach – with new facilities continuously in development.

We employ a diverse staff of over 500 multidisciplinary behavioral healthcare workers. Agency employees include: addiction specialist M.D.s; physicians; psychiatrists; Nurse Practitioners; RNs; and LVNs; state licensed clinical therapists; registered SUD counselors; navigators/case managers; as well as dedicated peer mentors with lived recovery experience, and program support staff.

Related Experience
L.A. CADA has been a part of Los Angeles County’s Specialty Substance Use Disorder Treatment System operated within the Department of Public Health since the mid 1980’s. We are a major provider of L.A. County homeless treatment beds for adults with alcohol, drug, and mental health disorders, as well as the largest provider of Recovery Bridge Housing (RBH) for the homeless in Los Angeles County. L.A. CADA is the L.A. County Service Planning Area (SPA) 7 provider for Community Engagement and Navigation Services (CENS), delivering needs assessment and service navigation for local residents, including the homeless. All L.A. CADA programs work closely with the L.A. County Coordinated Entry System (CES) for the homeless in the Service Planning Areas (SPAs) that L.A. CADA serves (SPAs 3; 4; 6; 7; and 8). Our agency is a CES Access Point in SPA 7.

We have been awarded two contracts to provide Interim Bridge Housing programs in the cities of Hawthorne and Montebello. (Tiny Homes)
L.A. CADA is currently contracted with the San Gabriel Valley Council of Governments for a similar Alternative Crisis Response program which launched over 12 months ago. Currently, the is one full-time team servicing a cohort including the cities of South Pasadena, San Marino, and Arcadia. Additionally, a full-time team in the city of La Verne which came online December 2023.

The services provided are similar in scope to what is outlined in this proposal.

We deliver similar homeless outreach services for the Alhambra Homeless Outreach Mental Evaluation Team – the Home Team and Homeless outreach for the cities of Hawthorne, West Covina, Glendora, Arcadia, San Dimas, and Rosemeade. L.A. CADA outreach workers provide street outreach, needs assessment, and service navigation for homeless residents many of whom have behavioral health issues. The project is part of our agency’s 50-year history in the delivery of services addressing community homelessness and behavioral health disorders.

L.A. CADA also understands that the ethnic breakdown, in our service areas, of homeless people was 02% Asian, 33% Black, 48% Latinx; 01% Pacific Islander; 15% White; and 02% mixed race. 2 This indicates strong need for the culturally responsive services provided by L.A. CADA. We know that 81% of the homeless here identified as heterosexual, with the rest identifying as either gay or lesbian (02%), bisexual (03%) or nonconforming (14%). This indicates need for LGBTQ+ Affirming Recovery Bridge Housing provided by L.A. CADA. Our HIV prevention and testing services may also be needed as the number of homeless people who self-report they are HIV-positive or have AIDS has jumped 40% in 2020 numbers. Approximately 07% of the homeless in our service areas self-report substance use issues and 26% reported mental health issues, indicating need for a homeless services provider that is addiction treatment and co-occurring disorders-capable. L.A. 267
L.A. CADA PROPOSAL FOR CITY OF HERMOSA BEACH MOBILE MENTAL HEALTH CRISIS RESPONSE TEAM PILOT PROGRAM – 2024
EXHIBIT A – SCOPE OF SERVICES

CADA recognizes that not all homeless people are willing to self-report substance use and mental health issues to strangers, therefore the number of people with these issues may be an undercount.

Another similar L.A. CADA project that conducts homeless services is the Priority Access Diversion Program in Long Beach. This project is a collaboration between the Long Beach City Prosecutor, the Long Beach Department of Public Health, the Los Angeles Public Defenders Office, and L.A.

CADA. Our agency identifies homeless defendants at highest risk in Long Beach. In lieu of continued criminal prosecution for violations common to the homeless (loitering, vagrancy, trespassing, possession of controlled substances or paraphernalia, failures to appear, etc.), L.A.

CADA is asked to intervene before or at the time of arraignment. We offer defendants whole person care with priority placement in our treatment programs, housing, or both. As this project proceeds in its fourth full year, L.A. CADA and the City of Long Beach are working to the greatest extent possible to deliver these services pre-arrest or pre-indictment. All participants are homeless with multiple prior criminal convictions. L.A. CADA’s experience and expertise with homeless persons involved in the criminal justice system is an innovative asset to Supplement to Existing Homeless Services Program. In all of these projects, L.A. CADA has a demonstrated track record for meeting contractual budgets, scope, and schedule.

CES and Care Coordination
L.A. CADA is a long- time participant in the L.A. County Coordinated Entry System as 95% of its residential treatment clients are homeless at service intake. As noted, L.A. CADA is a CES Access Point in Service Planning Area (SPA) 7. L.A. CADA is familiar with CES procedures/resources, including the CES Triage Tool and the Vulnerability Index Service Prioritization Decision Assistance Tool (VI-SPDAT), as well as CES reporting requirements. For the proposed project, L.A. CADA will designate staff to attend SPA 3 and SPA 7 CES meetings and will work closely with local Access Centers and Access Points to process referrals of homeless individuals in need of project services.

These agencies will include Union Station Homeless Services (serving adults) and Sycamores (serving TAY). L.A. CADA will facilitate warm hand-offs for homeless residents via L.A. CADA assigned vehicles and driver, providing transportation to housing and other needed resources ensured through formal Memorandum of Understanding (MOU) that L.A. CADA will put in place with community partners.

The program will also refer clients, and where appropriate, provide transport to local Behavioral Health Urgent Care Centers (BHUCC), including AMET in Alhambra and Montebello MT in Montebello, Stars Behavioral Health Group BHUCC in Industry, the LA County Community Mental Health Urgent Care Center in Sylmar, as well as to L.A. CADA 24/7 behavioral health resources.

When additional Behavioral Health Urgent Care Centers are established in SPA 3, these too will be engaged as a referral partner.

L.A. CADA references for this project are:

1. Alhambra City Manager, Jessica Binnquist
111 S First Street, Alhambra, CA 91801
[email protected]
Phone: 626-570-5010
268
L.A. CADA PROPOSAL FOR CITY OF HERMOSA BEACH MOBILE MENTAL HEALTH CRISIS RESPONSE TEAM PILOT PROGRAM – 2024
EXHIBIT A – SCOPE OF SERVICES

2. Long Beach City Prosecutor, Doug Haubert
411 W. Ocean Blvd. 8th Floor, Long Beach, CA 90802
[email protected]
(562) 570-5600

3. Nancy Chand, Deputy In-Charge, L.A. County Department of Mental Health 210 W. Temple Street, 19th Floor
Los Angeles, CA 90012
(213) 974-2839
[email protected]

4. Alhambra City Manager, Jessica Binnquist
111 S First Street, Alhambra, CA 91801
[email protected]
Phone: 626-570-5010

5. Long Beach City Prosecutor, Doug Haubert
411 W. Ocean Blvd. 8th Floor, Long Beach, CA 90802
[email protected]
(562) 570-5600

7. Dr. Gary Tsai, Director L.A. County Substance Abuse Prevention and Control (SAPC) 1000 South Fremont Ave, Building A-9 East, 3rd Floor, Alhambra, CA 91803 (626) 299-4101
[email protected]

8. Steve Abramson, Chief Operations Officer, ChapCare (FQHC) 455 W. Montana St. Pasadena, CA 91103
(626) 993-1207
[email protected]

9. Troy Vaughn, President / CEO
Los Angeles Mission
303 5th Street, Los Angeles, CA 90013
(213) 629-1227
[email protected]

10. Constance Gilkie, Executive Director & Founder
Transformational Living Homes
P.O. Box 40045, Long Beach, CA 90804
(562) 673-9214
[email protected]
269
Total
Hours
Cost Total
Hours
Cost Total
Hours
Cost Total
Hours
Cost Total
Hours
Cost Hours Cost
Program / Site Manager $50.64 208 $10,533.12 208 $10,533.12 208 $10,533.12 208 $10,533.12 208 $10,533.12 1,040 $52,665.60 Program Supervisor $89.10 $0.00 $0.00 520 $46,332.00 $0.00 $0.00 520 $46,332.00 Case Manager $30.59 312 $9,544.08 312 $9,544.08 312 $9,544.08 312 $9,544.08 312 $9,544.08 1,560 $47,720.40 Mental Health Clinician $49.50 $0.00 $0.00 $0.00 1560 $77,220.00 $0.00 1,560 $77,220.00 Mental Health Clinician $49.50 $0.00 $0.00 $0.00 1560 $77,220.00 $0.00 1,560 $77,220.00 SUD Counselor $35.20 $0.00 $0.00 $0.00 1560 $54,912.00 $0.00 1,560 $54,912.00 Peer Support / EMT $26.46 $0.00 $0.00 $0.00 1560 $41,277.60 $0.00 1,560 $41,277.60 Peer Support / EMT $26.46 $0.00 $0.00 $0.00 1560 $41,277.60 $0.00 1,560 $41,277.60 Quality Control $29.70 $0.00 $0.00 $0.00 780 $23,166.00 $0.00 780 $23,166.00 - $0.00
Fringe Benefit 25% $5,019.30 $5,019.30 $16,602.30 $83,787.60 $5,019.30 - $115,447.80 PROVIDER TOTAL 520 $25,096.50 520 $25,096.50 1040 $83,011.50 9100 $418,938.00 520 $25,096.50 11700 $577,239.00 [SUBCONTRACTOR] $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00
[SUBCONTRACTOR] $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00
[SUBCONTRACTOR] $0.00 $0.00 $0.00 $0.00 $0.00 - $0.00
SUBCONTRACTOR TOTAL 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 0 $0.00 STAFFING TOTAL 520 $25,096.50 520 $25,096.50 1040 $83,011.50 9100 $418,938.00 520 $25,096.50 11700 $577,239.00

TIMELINE
Direct Costs
Program Supplies (Narcan, PPE) $33,000.00 $33,000.00
Office Supplies $6,666.67 $6,666.67
Maintenance Supplies $16,666.67 $16,666.67
Clients Food Costs $7,200.00 $7,200.00
Lease Vehicles $21,000.00 $21,000.00
Downpayment for Vehicles $4,000.00 $4,000.00
Early Termination Fees for Vehicles $6,000.00 $6,000.00 Gasoline and small repair for vehicles $8,280.00 $8,280.00 Cell phone, Ipad and Laptops $2,950.00 $2,950.00
Monthly Service for cell phone, Ipad $2,250.00 $2,250.00 Medical Supplies $10,000.00 $10,000.00
Liability Insurance $8,065.12 $8,065.12
Indirect Costs 12% Approved NICR $3,011.58 $3,011.58 $25,090.79 $50,272.56 $3,011.58 $84,398.09 DIRECT COSTS TOTAL $3,011.58 $3,011.58 $151,169.25 $50,272.56 $3,011.58 $210,476.55 PROJECT TOTAL 520 $28,108.08 520 $28,108.08 1040 $234,180.75 9100 $469,210.56 520 $28,108.08 11700 $787,715.55 9 months
Hermosa Beach ACR - 9 Months Budget
Exhibit B - Budget Proposal

XX-XX XX-XX
STAFFING TOTAL (9 months) Task 2.1
Site Preparation
Task 2.2
Site Operation
Task 2.3 Closure of Site
and Transition of
Current Residents
XX-XX
Task 1.1
Project
Management
Task 1.2
Plan Development &
Staff Onboarding
Hourly
Rate*

XX - XX XX-XX
270
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0696
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023
REQUEST FOR A ZONE TEXT AMENDMENT (ZTA 23-05) AND ORDINANCE TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE CLARIFYING THE CITY’S REGULATION OF ADVERTISEMENT OF SHORT-TERM VACATION RENTALS IN ALL

ZONES AND A DETERMINATION THAT THE ORDINANCE IS EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT (CEQA)
(Carrie Tai Community Development Director)
Recommended Action:

Staff recommends City Council:

1. Introduce by title only and waive first reading of an ordinance of the City of Hermosa Beach, California approving a Zone Text Amendment (ZTA 23-05), to amend portions of Title 17 of the Hermosa Beach Municipal Code clarifying the City’s regulation of advertisement of Short-Term Vacation Rentals (STVRs) in all zones, and determine the ordinance is exempt from the California Environmental Quality Act (CEQA) (Attachment 1); and

2. Direct the City Clerk to publish a summary ordinance.

Executive Summary:

The City of Hermosa Beach currently regulates short-term vacation rentals (STVRs) through the Hermosa Beach Municipal Code Title 17, as well as through the City’s Short-Term Vacation Rental Pilot Program. At its May 24, 2016 meeting, City Council adopted an ordinance regulating the advertisement of STVRs in all zones in the City. Identifying the need to clarify advertisement of STVRs more precisely, staff recommends City Council consider adoption of an ordinance providing a modified definition and an update to reflect modern advertisement methods. At its November 13, 2023 meeting, the Planning Commission recommended City Council adopt the Zone Text Amendment as drafted by staff.

Background:

A short-term vacation rental is the rental of a dwelling unit, or a portion of a dwelling, for compensation by way of a rental agreement, lease, license, or any other means, whether oral or written to a person or group of persons for temporary overnight accommodations for a period of less than 30 consecutive days.

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At its May 24, 2016 meeting, City Council adopted Ordinance 16-1365 amending Sections 17.08.015,

17.10.015, 17.12.015, 17.14.015, 17.16.015, 17.18.025, 17.20.015, and 17.42.180 of the Hermosa Beach Municipal Code (HBMC) to expressly prohibit the rental or advertisement of a rental less than 30 days in all residential zones.

At its October 10, 2019 meeting, City Council adopted Ordinance No. 19-1395, instituting a two-year pilot program to allow STVRs in most commercial zones with nonconforming residential uses. The pilot program, known as the Short-Term Vacation Rental Pilot Program, was implemented to investigate the benefits of allowing rentals less than 30 days in the City’s commercial zones. The pilot program maintained existing regulations prohibiting the advertisement of STVRs not permitted through the pilot program.

At its December 14, 2021 meeting, City Council adopted Ordinance 21-1440 to extend the pilot program an additional two years, with revisions to clarify existing requirements. Revisions included adding referenced municipal code sections and title and updating formatting to make it easier to read.

The ordinance established a new expiration date of October 24, 2023.

At its September 26, 2023 meeting, City Council adopted Ordinance 23-1468 (Attachment 4) to extend the pilot program another two years, and further clarify permitting requirements. The ordinance made no change to existing language concerning prohibited advertisement of STVRs.

Recent legal challenges have revealed arguments relying on the nuances of the websites posting STVRs and casting ambiguity on whether these specific website features qualified as an advertisement. Further, some posts have contradictory information (i.e., one passage indicating no rentals for less than 30 days, other features indicating rentals for less than 30 days). To minimize future disputes or attempts to circumvent the City’s STVR advertising regulations, staff brought Zoning Text Amendment (ZTA 23-05) forward to the Planning Commission for its consideration.

At its November 13, 2023 meeting, the Planning Commission adopted Planning Commission Resolution 23-23 (Attachment 2) recommending City Council approve minor text changes to clarify the City’s regulation of advertisements for STVRs in all zones.

Past Board, Commission, and Council Actions
Meeting Date Description
March 2016 Planning Commission directed staff to 1) set a public hearing to consider a text amendment to clarify the existing regulations that prohibited short-term vacation rentals in residential zones; and 2) analyze the feasibility of allowing short-term vacation rentals within non-conforming
residential units within commercially zoned properties
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March 2016 Planning Commission directed staff to 1) set a public hearing to consider a text amendment to clarify the existing regulations that prohibited short-term vacation rentals in residential zones; and 2) analyze the feasibility of allowing short-term vacation rentals within non-conforming
residential units within commercially zoned properties.

May 24, 2016 After several Planning Commission and City Council public hearings to consider the ban on short-term vacation rentals in residential zones, the City Council adopted Ordinance 16- 1365, which clarified the existing City regulations that prohibited short-term vacation rentals in all residential zones, including advertisement of STVRs.

June 21, 2016 Staff introduced the potential for allowing short-term vacation rentals within nonconforming residential uses in commercial zones to the Planning Commission.

September 20, 2016 The Planning Commission received an informational update on staff efforts to explore allowing short-term vacation rentals in commercial zones. Staff discussed other
jurisdictions’ criteria.

November 15, 2016 Based on recommendations from the Planning Commission at the September 20, 2016 meeting, staff prepared a draft set of criteria that would be the basis for a draft ordinance and presented them to the Planning Commission.

December 12, 2016 The Planning Commission conducted its final public hearing on the text amendment. After considering all the oral and written testimony provided to them over the four meetings, the Planning Commission voted 3-2 not to adopt the
resolution recommending the City Council adopt a text
amendment to regulate short-term vacation rentals in
existing nonconforming residential units located in
commercial zoning districts.

March 28, 2017 The City Council conducted a public hearing to consider a text amendment to the municipal code to establish a twoyear pilot program to allow short-term vacation rentals in non-conforming residential dwelling units on properties that are commercially zoned. At the conclusion of the hearing, the City Council provided staff with direction for the
ordinance.

September 10, 2019 At the City Council meeting, staff presented the draft ordinance for Council consideration. Following the public hearing, the City Council introduced the ordinance, on a 4-1 vote with Mayor Armato dissenting, with amendments to
Sti3 f thdi
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text amendment to the municipal code to establish a twoyear pilot program to allow short-term vacation rentals in non-conforming residential dwelling units on properties that are commercially zoned. At the conclusion of the hearing, the City Council provided staff with direction for the
ordinance.

September 10, 2019 At the City Council meeting, staff presented the draft ordinance for Council consideration. Following the public hearing, the City Council introduced the ordinance, on a 4-1 vote with Mayor Armato dissenting, with amendments to
Section 3 of the ordinance.

September 24, 2019 On September 24, 2019, the ordinance was brought back to City Council for adoption; however, the City Council
changed the Language of Subsection A.3(c).

October 10, 2019 The ordinance was brought back to Council with the requested changes for waiver of full reading and adoption.

After considering all the oral and written testimony provided to them over the two meetings, City Council voted 4-1 to adopt Ordinance 19-1395 an Ordinance of the City of
Hermosa Beach, California, amending various sections of the Hermosa Beach Municipal Code to establish a two-year pilot program to regulate the rental of existing
nonconforming residential properties that are located in commercial zoning districts for fewer than 30 days.

September 21, 2021 During the September 21, 2021 Planning Commission hearing, staff sought direction from the Commission on
whether to continue the vacation rentals pilot program and amend existing language to help clarify and clear up
existing requirements for short-term vacation rentals. After discussion and deliberation, the Planning Commission
directed staff to set a public hearing to consider a text amendment to continue the Short-term Vacation Rentals
Pilot Program for two additional years, for a total of four years from the ordinance effective date of October 24, 2019 and amend the existing language to help clarify and clear up the existing requirements for short-term vacation rentals.

October 19, 2021 The Planning Commission conducted its final public hearing on the text amendment. After considering all the oral and written testimony provided to them over the two meetings, the Planning Commission voted 5-0 not to adopt the
resolution recommending the City Council adopt a text
amendment to continue the Short-term Vacation Rentals
Pilot Program for two additional years, for a total of four years from the ordinance effective date of October 24, 2019 and would revise the existing language to help clarify and clear up the existing requirements for short-term vacation rentals.

October 26, 2021 City Council heard public testimony. City Council moved first reading of Ordinance No21-1440; motion carried 5-0
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directed staff to set a public hearing to consider a text amendment to continue the Short-term Vacation Rentals
Pilot Program for two additional years, for a total of four years from the ordinance effective date of October 24, 2019 and amend the existing language to help clarify and clear up the existing requirements for short-term vacation rentals.

October 19, 2021 The Planning Commission conducted its final public hearing on the text amendment. After considering all the oral and written testimony provided to them over the two meetings, the Planning Commission voted 5-0 not to adopt the
resolution recommending the City Council adopt a text
amendment to continue the Short-term Vacation Rentals
Pilot Program for two additional years, for a total of four years from the ordinance effective date of October 24, 2019 and would revise the existing language to help clarify and clear up the existing requirements for short-term vacation rentals.

October 26, 2021 City Council heard public testimony. City Council moved first reading of Ordinance No. 21-1440; motion carried 5-0.

December 14, 2021 City Council approved Ordinance No. 21-1440 to continue the STVR program an additional two years and modify
existing language concerning permit requirements.

August 15, 2023 Planning Commission conducted a public hearing and adopted Resolution 23-12, recommending to City Council
approval of an Ordinance.

September 12, 2023 City Council heard public testimony. City Council moved first reading of Ordinance No. 23-1468; motion carried 5-0.

September 26, 2023 City Council adopted Ordinance 23-1468 extending the STVR pilot program to October 24, 2025 and clarifying
permitting requirements.

November 13, 2023 Planning Commission conducted a public hearing and adopted Planning Commission Resolution 23-23,
recommending to City Council approval an Ordinance.

Analysis:

STVRs are currently only allowed in nonconforming residential uses on specific commercially zoned properties. Those properties are limited to the C-2, C-3, SPA-7, SPA-8, and SPA-11 zones.

Additionally, advertisement of unpermitted STVRs in all zones is currently prohibited. The primary intent of Zone Text Amendment 23-05, and the proposed ordinance, is to clarify STVR advertisement regulations in all zones. The zone text amendment proposes no change to the general prohibition of STVRs in all residential zones. Minor language adjustments are proposed to clarify standards more clearly for STVRs.

Proposed Zone Text Amendment Language
Proposed amendments are shown below. Bold, italicized, and underlined text represents proposed City of Hermosa Beach Page 5 of 8 Printed on 12/7/2023
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Proposed amendments are shown below. Bold, italicized, and underlined text represents proposed additions (example). Strikethrough text represents proposed deletions (example). · HBMC Section 17.04.040-General Definitions
“Advertisement” is amended as follows:

Advertisement means any printed or lettered announcement, whether in a magazine, newspaper, handbill, notice, display, billboard, poster, email, Internet website or application, or any other form.

This definition includes, but is not limited to, any display on a website pop-up, calendar function, widget, or any other website display.

The modified definition would expand prohibited postings to include more modern methods of advertisement. Notably, websites offering STVR stays, often use calendar functions or scheduling widgets to allow user to choose days more efficiently.
· HBMC Section 17.42.180-Short-Term Vacation Rentals
It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days and for any person to occupy a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation or consideration except for short-term vacation rentals in nonconforming residential dwelling units in certain commercial zones in compliance with the following requirements. No person or entity shall maintain any advertisement of a short-term rental in violation of this section, in any zone. In the event that an advertisement has conflicting information regarding a prohibited rental, the advertisement for the shorter amount of time shall control.

The added language provides clear direction for staff in cases where advertisements for a property are inconsistent over multiple platforms. For example, a website may have a description for the property, noting stays less than 30 days are prohibited, but a calendar function may allow a user to choose to stay for less than 30 days. The proposed language clarifies that the advertisement offering a shorter stay would be binding for code enforcement purposes.

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
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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.

Environmental Determination:

The Zone Text Amendment is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3). The activity is covered by the commonsense exemption that CEQA applies only to projects, which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

The Zone Text Amendment would not approve any development project or create any new land use provisions that would allow new development, and therefore would not cause a significant effect on the environment.

Public Notification:

A legal ad noticing the December 12, 2023 City Council meeting was published on November 30, 2023 in the Beach Reporter, a newspaper of general circulation. Public notification materials are included as Attachment 5.

Fiscal Impact:

There is no fiscal impact associated with the recommended action.

Attachments:

1. Proposed Ordinance

2. Planning Commission Resolution 23-23

3. Redlined Draft Ordinance

4. Ordinance No. 23-1468

5. Public Notification Package

6. Link to May 24, 2016 City Council Staff Report

7. Link to June 21, 2016 Planning Commission Staff Report

8. Link to September 20, 2016 Planning Commission Staff Report City of Hermosa Beach Page 7 of 8 Printed on 12/7/2023
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9. Link to November 15, 2016 Planning Commission Staff Report

10.Link to December 12, 2016 Planning Commission Staff Report

11.Link to March 28, 2017 City Council Staff Report

12.Link to September 10, 2019 City Council Staff Report

13.Link to September 24, 2019 City Council Staff Report

14.Link to October 10, 2019 City Council Staff Report

15.Link to September 21, 2021 Planning Commission Staff Report

16.Link to October 19, 2021 Planning Commission Staff Report

17.Link to October 26, 2021 City Council Staff Report

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

19.Link to August 15, 2023 Planning Commission Staff Report

20.Link to September 12, 2023 City Council Staff Report

21.Link to September 26, 2023 City Council Staff Report

22.Link to November 13, 2023 Planning Commission Staff Report Respectfully Submitted by: Johnathon Masi, Assistant Planner Concur: Alexis Oropeza, Planning Manager
Concur: Carrie Tai, AICP, Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
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CITY OF HERMOSA BEACH
ORDINANCE NO. 23-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA APPROVING ZONE TEXT AMENDMENT 23-05, TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE CLARIFYING THE CITY’S REGULATION OF ADVERTISEMENT OF

SHORT-TERM VACATION RENTALS IN ALL ZONES AND DETERMINE THE

AMENDMENT IS EXEMPT FROM THE CALIFORNIA ENVIRONEMNTAL

QUALITY ACT (CEQA)

THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. On May 24, 2016, City Council adopted Ordinance No. 16- 1365, which clarified existing City regulations that prohibited short-term vacation rentals in all residential zones, including advertisement of STVRs.

SECTION 2. The City Council held a duly noticed public hearing on December 12, 2023 to consider a text amendment to portions of Hermosa Beach Municipal Code Title 17.

SECTION 3. Under Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the ordinance qualifies as a “common sense exemption” as CEQA only applies to projects which have the potential for causing a significant effect on the environment.

SECTION 4. The City Council finds the proposed amendments are consistent with the City’s General Plan. The ordinance will also comply with State requirements. The amendments will not impede the City’s ability to meet its General Plan goals, and the amendments are necessary to carry out the purposes of the Zoning Ordinance, including the orderly planned use of land resources.

SECTION 5. Section 17.04.040 (General Definitions) of Chapter 17.04 (Definitions) of Title 17 (Zoning) is amended to read as follows:

17.04.040 – “Advertisement”
Advertisement means any printed or lettered announcement, whether in a 279
magazine, newspaper, handbill, notice, display, billboard, poster, email, Internet website or application, or any other form. This definition includes, but is not limited to, any display on a website pop-up, calendar function, widget or any other website display.

SECTION 6. Section 17.42.180 (Short-Term Vacation Rentals) of Chapter

17.42 (General Provisions, Conditions and Exceptional Uses) of Title 17 (Zoning) is amended to read as follows:

17.42.180 Short-Term Vacation Rentals.

It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days and for any person to occupy a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation or consideration except for short-term vacation rentals in nonconforming residential dwelling units in certain commercial zones in compliance with the following requirements. No person or entity shall maintain any advertisement of a shortterm rental in violation of this section, in any zone. In the event that an advertisement has conflicting information regarding a prohibited rental, the advertisement for the shorter amount of time shall control.

This section sets forth requirements for the establishment and operation of shortterm vacation rentals in nonconforming residential dwelling units in certain commercial zones.

A.Permit and Operational Requirements. The approval of operation of a shortterm vacation rental shall be subject to the following requirements:

1. Administrative Permit Required. Short-term vacation rentals may be established and operated only after an administrative permit has been approved in compliance with Chapter 17.55. The administrative permit for a short-term vacation rental shall be valid for one calendar year from the date of issuance and must be renewed annually thereafter; provided, that this section remains in effect and has not expired.
a. Prior to approval or renewal of an administrative permit for operation of a short-term vacation rental, the premises shall be inspected by the 280
building official or their designee for compliance with all applicable building and safety codes, as well as compliance with any applicable Municipal Code regulations regarding short-term vacation rentals. If the building official or their designee conducts more than two (2) inspections to verify compliance due to outstanding corrections, the applicant is subject to a reinspection fee for those additional inspections.
b. An application for a new or renewal of an administrative permit shall include payment of all required and outstanding administrative fees. c. The application submittal shall include a list of the Uniform Resource Locations (URL) where the property is listed online, and the applicant shall keep the list current at all times.
d. Short-term vacation rentals established under this section shall have no vested right to continued existence.

2. Location. Short-term vacation rentals shall only be permitted in nonconforming residential dwellings on properties zoned C-2, C-3, SPA 7, SPA 8, or SPA 11.
a. For purposes of this section, a "nonconforming residential unit" shall mean a residential dwelling unit that was lawfully established and maintained as a dwelling unit as of October 24, 2019. If the unit is converted into a nonresidential use, then it shall be deemed the termination of the existing nonconforming residential use, and thereby the unit loses any nonconforming status as a residential use and loses any right to operate as a short-term vacation rental.

3. Management and Operations Plan. In addition to any other requirements for an application for an administrative permit, or any conditions of approval contained therein, the application to establish and operate a short-term vacation rental shall be accompanied by a management plan, which shall establish, to the satisfaction of the community development director (director), or their designee, the following:
a. The reasonably prudent business practices that owner or owner’s authorized agent will use to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules, regulations, and permits.
b. An identification plaque posted and maintained at all times, within plain view of and legible to the general public, not exceeding six square feet in size, and containing address of premises and permit number, and telephone number of Hermosa Beach Police Department dispatch for 281
complaints regarding condition, operation or conduct of occupants of the unit. The director may alter the size requirement to ensure the plaque is legible from the adjacent publicright-of-way.
c. The name, address, and telephone number of a local contact person who shall be available 24 hours per day, seven days per week for the purpose of responding to City staff calls pertaining to complaints regarding the condition, operations, or conduct of occupants of the short-term vacation rental or their guests, and if directed by City staff, to personally proceed on site within 30 minutes from the call to resolve the problem.
d. The owner or the owner’s authorized agent shall, upon notification that any occupant or guest of the short-term vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct. Failure of the owner or the owner’s authorized agent to respond to such calls or complaints regarding the condition, operation, or conduct of the occupants and/or guests of the short-term vacation rental unit in a timely and appropriate manner shall subject the owner to all administrative, legal, and equitable remedies available to the City. e. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct or illegal activity, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.
f. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used for overnight accommodations purposes only. This shall include using all prudent business practices to prohibit the rental to commercial party businesses.
g. Prior to occupancy of a short-term vacation rental unit, the owner or the owner’s authorized agent shall:
i. Obtain the contact information of the renter.
ii. Provide a copy of the City’s "Good Neighbor" brochure containing these requirements to the renter.
282
iii. Require the renter to execute a formal acknowledgement they are legally responsible for compliance by all occupants of the shortterm vacation rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term vacation rental unit.
iv. The information required in subsections (A)(3)(g)(i) and (A)(3)(g)(iii) of this subsection shall be maintained by the owner or the owner’s authorized agent for a period of three years and be made available upon request to any officer of the City responsible for the enforcement of any provision of the Municipal Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short- term vacation rental unit.
h. The property shall be maintained free of litter and debris. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of collection by the City’s authorized waste hauler on scheduled trash collection days. Trash receptacles must be maintained within an enclosure and placed for pick up to comply with the provisions of HBMC 8.12.220 and 8.12.230. The size or number of containers and/or frequency of pick-up (if permitted by the City’s authorized waste hauler) shall be increased if needed to accommodate the amount of trash generated by all uses on the site.
i. On-site parking shall be allowed on approved driveway, garage and/or carport areas only. Parking shall comply with all current City parking regulations. Parking of oversized vehicles must comply with the provisions of Chapter 10.32, Stopping, Standing and Parking, of the Municipal Code.
j. Approved on-site parking space(s), including all enclosed garages, shall be kept free and clear to accommodate vehicular parking for renters/guests during all times the unit is in use as a short-term vacation rental.
k. The number of adult occupants allowed to occupy any given short-term vacation rental unit shall be limited to two (2) per bedroom/sleeping area.
l. The director shall have the authority to impose additional conditions on the use of any given short-term vacation rental to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated.
m. The owner or owner’s authorized agent shall post the current short-term 283
vacation rental permit number, a photograph of the front of the property where the short-term vacation rental unit is located, as well as the number of approved on-site parking spaces available, in any written publication or on any website that promotes the availability or existence of a short-term vacation rental unit.

4. The owner shall comply with all requirements related to a business license under Chapter 5.04, Business Licenses Generally, of the Municipal Code, and related to the transient occupancy tax under Chapter 3.32, Transient Occupancy Tax, of the Municipal Code for the operation of the short-term vacation rental.

B. Development Standards. Short-term vacation rentals shall conform to the following standards:

1. On-site parking shall be provided as required under Chapter17.44.

2. A private kitchen area, shower, and toilet facilities, and at least one room/area designated as a sleeping area shall be provided in eachunit.

C.Violations. Violations of this section are subject to the following standards.

1. Any violation of this section shall result in issuance of an administrative citation pursuant to Chapter 1.10, Administrative Citations, Penalties, or any other legal methods of enforcement, of the Municipal Code.

2. More than three violations of this section or any of the City’s quality of life ordinances, such as noise violations, disturbing the peace, or creating a public nuisance, within a 12-month period shall be grounds for revocation of the business license and administrative permit, in accordance with provisions of the Code, provided the three violations have been affirmed by a hearing officer in the event they are appealed.

D.Sunset Clause. The provisions in this section shall become inoperative on October 24, 2025, and shall be considered repealed on that date, unless the City Council of Hermosa Beach enacts a new ordinance that becomes effective on or before October 24, 2025, and which deletes or extends that date. No new or renewals of administrative permits and/or business licenses for short-term vacation rentals shall be issued after October 24, 2025, and no permitted short-term vacation rental shall have a right to operate beyond the term of the permit.

SECTION 7. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this 284
resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

SECTION 8. Effective Date. This Ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937.

SECTION 9. Certification. The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law.

PASSED, APPROVED and ADOPTED on this _____ day of _________, 2023.

Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:

Myra Maravilla Patrick Donegan
City Clerk City Attorney
285
Exhibit A to PC Resolution 23-23

CITY OF HERMOSA BEACH
PC RESOLUTION NO. 23-23

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

HERMOSA BEACH, CALIFORNIA RECOMMENDING THE CITY COUNCIL APPROVE ZONE TEXT AMENDMENT 23-05, TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE CLARIFYING THE CITY’S REGULATION OF THE ADVERTISEMENT OF SHORT-TERM

VACATION RENTALS IN ALL ZONES AND DETERMINE THE AMENDMENT

IS EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
WHEREAS, on May 24, 2016, City Council adopted Ordinance No. 16-1365, which clarified existing City regulations that prohibited short-term vacation rentals in all residential zones, including advertisement of STVRs; and WHEREAS, staff determined clarification is required to effectively enforce provisions of the municipal code, specifically regulations regarding prohibited advertisement of unpermitted short-term vacation rentals; and WHEREAS, under Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the ordinance qualifies for a “common sense exemption” as CEQA only applies to projects which have the potential for causing a significant effect on the environment; and
WHEREAS, the Planning Commission finds the proposed amendments are consistent with the City’s General Plan. The ordinance will also comply with State requirements. The amendments will not impede the City’s ability to meet its General Plan goals, and the amendments are necessary to carry out the purposes of the Zoning Ordinance, including the orderly planned use of land resources.

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

SECTION 1. The Planning Commission of the City of Hermosa Beach hereby recommends City Council adopt an Ordinance approving amendments to Title 17 of the Hermosa Beach Municipal Code, as included as Exhibit A. 286
Exhibit A to PC Resolution 23-23
VOTE: AYES: 5 - Chair Hoffman, Vice Chair Rice, Commissioner Pederson, Commissioner Wicks, Commission Izant
NOES: 0
ABSTAIN: 0
ABSENT: 0

CERTIFICATION
I hereby certify the foregoing Planning Commission Resolution 23-23 is a true and complete record of the action taken by the Planning Commission of the City of Hermosa Beach, California at its regular meeting of November 13, 2023. ________________________________ ________________________________ Peter Hoffman Carrie Tai Chair Secretary ________________________________ Date
287
Exhibit A to PC Resolution 23-23

CITY OF HERMOSA BEACH
ORDINANCE NO. 23-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA APPROVING ZONE TEXT AMENDMENT 23-05, TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE CLARIFYING THE CITY’S REGULATION OF ADVERTISEMENT OF

SHORT-TERM VACATION RENTALS IN ALL ZONES AND DETERMINE THE

AMENDMENT IS EXEMPT FROM THE CALIFORNIA ENVIRONEMNTAL

QUALITY ACT (CEQA)

THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. On May 24, 2016, City Council adopted Ordinance No. 16-1365, which clarified existing City regulations that prohibited short-term vacation rentals in all residential zones, including advertisement of STVRs.

SECTION 2. The City Council held a duly noticed public hearing on ________, 2023 to consider a text amendment to portions of Hermosa Beach Municipal Code Title 17.

SECTION 3. Under Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the ordinance qualifies as a “common sense exemption” as CEQA only applies to projects which have the potential for causing a significant effect on the environment.

SECTION 4. The City Council finds the proposed amendments are consistent with the City’s General Plan. The ordinance will also comply with State requirements.

The amendments will not impede the City’s ability to meet its General Plan goals, and the amendments are necessary to carry out the purposes of the Zoning Ordinance, including the orderly planned use of land resources.

SECTION 5. Section 17.04.040 (General Definitions) of Chapter 17.04 (Definitions) of Title 17 (Zoning) is amended to read as follows:

17.04.040 – “Advertisement”
Advertisement means any printed or lettered announcement, whether in a 288
Exhibit A to PC Resolution 23-23
magazine, newspaper, handbill, notice, display, billboard, poster, email, Internet website or application, or any other form. This definition includes, but is not limited to, any display on a website pop-up, calendar function, widget or any other website display.

SECTION 6. Section 17.42.180 (Short-term Vacation Rentals) of Chapter

17.42 (General Provisions, Conditions and Exceptional Uses) of Title 17 (Zoning) is amended to read as follows:

17.42.180 Short-Term Vacation Rentals.

It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days and for any person to occupy a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation or consideration except for short-term vacation rentals in nonconforming residential dwelling units in certain commercial zones in compliance with the following requirements. No person or entity shall maintain any advertisement of a short-term rental in violation of this section, in any zone. In the event that an advertisement has conflicting information regarding a prohibited rental, the advertisement for the shorter amount of time shall control.

This section sets forth requirements for the establishment and operation of shortterm vacation rentals in nonconforming residential dwelling units in certain commercial zones.

A.Permit and Operational Requirements. The approval of operation of a shortterm vacation rental shall be subject to the following requirements:

1. Administrative Permit Required. Short-term vacation rentals may be established and operated only after an administrative permit has been approved in compliance with Chapter 17.55. The administrative permit for a short-term vacation rental shall be valid for one calendar year from the date of issuance and must be renewed annually thereafter; provided, that this section remains in effect and has not expired.
a. Prior to approval or renewal of an administrative permit for operation of a short-term vacation rental, the premises shall be inspected by the building 289
Exhibit A to PC Resolution 23-23
official or their designee for compliance with all applicable building and safety codes, as well as compliance with any applicable Municipal Code regulations regarding short-term vacation rentals. If the building official or their designee conducts more than two (2) inspections to verify compliance due to outstanding corrections, the applicant is subject to a reinspection fee for those additional inspections.
b. An application for a new or renewal of an administrative permit shall include payment of all required and outstanding administrative fees. c. The application submittal shall include a list of the Uniform Resource Locations (URL) where the property is listed online, and the applicant shall keep the list current at all times.
d. Short-term vacation rentals established under this section shall have no vested right to continued existence.

2. Location. Short-term vacation rentals shall only be permitted in nonconforming residential dwellings on properties zoned C-2, C-3, SPA 7, SPA 8, or SPA 11. a. For purposes of this section, a "nonconforming residential unit" shall mean a residential dwelling unit that was lawfully established and maintained as a dwelling unit as of October 24, 2019. If the unit is converted into a nonresidential use, then it shall be deemed the termination of the existing nonconforming residential use, and thereby the unit loses any nonconforming status as a residential use and loses any right to operate as a short-term vacation rental.

3. Management and Operations Plan. In addition to any other requirements for an application for an administrative permit, or any conditions of approval contained therein, the application to establish and operate a short-term vacation rental shall be accompanied by a management plan, which shall establish, to the satisfaction of the community development director (director), or their designee, the following:
a. The reasonably prudent business practices that owner or owner’s authorized agent will use to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules, regulations, and permits.
b. An identification plaque posted and maintained at all times, within plain view of and legible to the general public, not exceeding six square feet in size, and containing address of premises and permit number, and telephone number of Hermosa Beach Police Department dispatch for complaints regarding condition, operation or conduct of occupants of the unit. The director may alter the size requirement to ensure the plaque is 290
Exhibit A to PC Resolution 23-23
legible from the adjacent public right-of-way. c. The name, address, and telephone number of a local contact person who shall be available 24 hours per day, seven days per week for the purpose of responding to City staff calls pertaining to complaints regarding the condition, operations, or conduct of occupants of the short-term vacation rental or their guests, and if directed by City staff, to personally proceed on site within 30 minutes from the call to resolve the problem. d. The owner or the owner’s authorized agent shall, upon notification that any occupant or guest of the short-term vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct. Failure of the owner or the owner’s authorized agent to respond to such calls or complaints regarding the condition, operation, or conduct of the occupants and/or guests of the short-term vacation rental unit in a timely and appropriate manner shall subject the owner to all administrative, legal, and equitable remedies available to the City. e. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the shortterm vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct or illegal activity, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.
f. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used for overnight accommodations purposes only. This shall include using all prudent business practices to prohibit the rental to commercial party businesses.
g. Prior to occupancy of a short-term vacation rental unit, the owner or the owner’s authorized agent shall:
i. Obtain the contact information of the renter.
ii. Provide a copy of the City’s "Good Neighbor" brochure containing these requirements to the renter.
iii. Require the renter to execute a formal acknowledgement they are legally responsible for compliance by all occupants of the short- term vacation rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term vacation rental unit. 291
Exhibit A to PC Resolution 23-23
iv. The information required in subsections (A)(3)(g)(i) and (A)(3)(g)(iii) of this subsection shall be maintained by the owner or the owner’s authorized agent for a period of three years and be made available upon request to any officer of the City responsible for the enforcement of any provision of the Municipal Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short- term vacation rental unit. h. The property shall be maintained free of litter and debris. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of collection by the City’s authorized waste hauler on scheduled trash collection days. Trash receptacles must be maintained within an enclosure and placed for pick up to comply with the provisions of HBMC 8.12.220 and 8.12.230. The size or number of containers and/or frequency of pick-up (if permitted by the City’s authorized waste hauler) shall be increased if needed to accommodate the amount of trash generated by all uses on the site.
i. On-site parking shall be allowed on approved driveway, garage and/or carport areas only. Parking shall comply with all current City parking regulations. Parking of oversized vehicles must comply with the provisions of Chapter 10.32, Stopping, Standing and Parking, of the Municipal Code. j. Approved on-site parking space(s), including all enclosed garages, shall be kept free and clear to accommodate vehicular parking for renters/guests during all times the unit is in use as a short-term vacation rental. k. The number of adult occupants allowed to occupy any given short-term vacation rental unit shall be limited to two (2) per bedroom/sleeping area. l. The director shall have the authority to impose additional conditions on the use of any given short-term vacation rental to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated.
m. The owner or owner’s authorized agent shall post the current short-term vacation rental permit number, a photograph of the front of the property where the short-term vacation rental unit is located, as well as the number of approved on-site parking spaces available, in any written publication or on any website that promotes the availability or existence of a short-term vacation rental unit.

4. The owner shall comply with all requirements related to a business license under Chapter 5.04, Business Licenses Generally, of the Municipal Code, and related to the transient occupancy tax under Chapter 3.32, Transient Occupancy Tax, of the Municipal Code for the operation of the short-term 292
Exhibit A to PC Resolution 23-23
vacation rental.

B. Development Standards. Short-term vacation rentals shall conform to the following standards:

1. On-site parking shall be provided as required under Chapter17.44. 2. A private kitchen area, shower, and toilet facilities, and at least one room/area designated as a sleeping area shall be provided in each unit.

C.Violations. Violations of this section are subject to the following standards.

1. Any violation of this section shall result in issuance of an administrative citation pursuant to Chapter 1.10, Administrative Citations, Penalties, or any other legal methods of enforcement, of the Municipal Code.

2. More than three violations of this section or any of the City’s quality of life ordinances, such as noise violations, disturbing the peace, or creating a public nuisance, within a 12-month period shall be grounds for revocation of the business license and administrative permit, in accordance with provisions of the Code, provided the three violations have been affirmed by a hearing officer in the event they are appealed.

D.Sunset Clause. The provisions in this section shall become inoperative on October 24, 2025, and shall be considered repealed on that date, unless the City Council of Hermosa Beach enacts a new ordinance that becomes effective on or before October 24, 2025, and which deletes or extends that date. No new or renewals of administrative permits and/or business licenses for short-term vacation rentals shall be issued after October 24, 2025, and no permitted short-term vacation rental shall have a right to operate beyond the term of the permit.

SECTION 7. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

SECTION 8. Effective Date. This Ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937.
293
Exhibit A to PC Resolution 23-23
SECTION 9. Certification. The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law.

PASSED, APPROVED and ADOPTED on this _____ day of _________, 2023.

Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:

Myra Maravilla Patrick Donegan
City Clerk City Attorney
294
295

17.04.040 General Definitions
Advertisement means any printed or lettered announcement, whether in a magazine, newspaper, handbill, notice, display, billboard, poster, email, Internet website or application, or any other form. This definition includes, but is not limited to, any display on a website pop-up, calendar function, widget or any other website display.

17.42.180 Short-Term Vacation Rentals.

It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days and for any person to occupy a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation or consideration except for short-term vacation rentals in nonconforming residential dwelling units in certain commercial zones in compliance with the following requirements. No person or entity shall maintain any advertisement of a short-term rental in violation of this section, in any zone. In the event that an advertisement has conflicting information regarding a prohibited rental, the advertisement for the shorter amount of time shall control.

This section sets forth requirements for the establishment and operation of shortterm vacation rentals in nonconforming residential dwelling units in certain commercial zones.

A.Permit and Operational Requirements. The approval of operation of a shortterm vacation rental shall be subject to the following requirements:

1. Administrative Permit Required. Short-term vacation rentals may be established and operated only after an administrative permit has been approved in compliance with Chapter 17.55. The administrative permit for a short-term vacation rental shall be valid for one calendar year from the date of issuance and must be renewed annually thereafter; provided, that this section remains in effect and has not expired.
a. Prior to approval or renewal of an administrative permit for operation of a short-term vacation rental, the premises shall be inspected by the building official or their designee for compliance with all applicable building and safety codes, as well as compliance with any applicable Municipal Code 296
regulations regarding short-term vacation rentals. If the building official or their designee conducts more than two (2) inspections to verify compliance due to outstanding corrections, the applicant is subject to a reinspection fee for those additional inspections.
b. An application for a new or renewal of an administrative permit shall include payment of all required and outstanding administrative fees. c. The application submittal shall include a list of the Uniform Resource Locations (URL) where the property is listed online, and the applicant shall keep the list current at all times.
d. Short-term vacation rentals established under this section shall have no vested right to continued existence.

2. Location. Short-term vacation rentals shall only be permitted in nonconforming residential dwellings on properties zoned C-2, C-3, SPA 7, SPA 8, or SPA 11. a. For purposes of this section, a "nonconforming residential unit" shall mean a residential dwelling unit that was lawfully established and maintained as a dwelling unit as of October 24, 2019. If the unit is converted into a nonresidential use, then it shall be deemed the termination of the existing nonconforming residential use, and thereby the unit loses any nonconforming status as a residential use and loses any right to operate as a short-term vacation rental.

3. Management and Operations Plan. In addition to any other requirements for an application for an administrative permit, or any conditions of approval contained therein, the application to establish and operate a short-term vacation rental shall be accompanied by a management plan, which shall establish, to the satisfaction of the community development director (director), or their designee, the following:
a. The reasonably prudent business practices that owner or owner’s authorized agent will use to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules, regulations, and permits.
b. An identification plaque posted and maintained at all times, within plain view of and legible to the general public, not exceeding six square feet in size, and containing address of premises and permit number, and telephone number of Hermosa Beach Police Department dispatch for complaints regarding condition, operation or conduct of occupants of the unit. The director may alter the size requirement to ensure the plaque is legible from the adjacent publicright-of-way.
297
c. The name, address, and telephone number of a local contact person who shall be available 24 hours per day, seven days per week for the purpose of responding to City staff calls pertaining to complaints regarding the condition, operations, or conduct of occupants of the short-term vacation rental or their guests, and if directed by City staff, to personally proceed on site within 30 minutes from the call to resolve the problem. d. The owner or the owner’s authorized agent shall, upon notification that any occupant or guest of the short-term vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct. Failure of the owner or the owner’s authorized agent to respond to such calls or complaints regarding the condition, operation, or conduct of the occupants and/or guests of the short-term vacation rental unit in a timely and appropriate manner shall subject the owner to all administrative, legal, and equitable remedies available to the City. e. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the short-term vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct or illegal activity, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.
f. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used for overnight accommodations purposes only. This shall include using all prudent business practices to prohibit the rental to commercial party businesses.
g. Prior to occupancy of a short-term vacation rental unit, the owner or the owner’s authorized agent shall:
i. Obtain the contact information of the renter.
ii. Provide a copy of the City’s "Good Neighbor" brochure containing these requirements to the renter.
iii. Require the renter to execute a formal acknowledgement they are legally responsible for compliance by all occupants of the short- term vacation rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term vacation rental unit. iv. The information required in subsections (A)(3)(g)(i) and (A)(3)(g)(iii) of this 298
subsection shall be maintained by the owner or the owner’s authorized agent for a period of three years and be made available upon request to any officer of the City responsible for the enforcement of any provision of the Municipal Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short- term vacation rental unit.
h. The property shall be maintained free of litter and debris. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of collection by the City’s authorized waste hauler on scheduled trash collection days. Trash receptacles must be maintained within an enclosure and placed for pick up to comply with the provisions of HBMC 8.12.220 and 8.12.230. The size or number of containers and/or frequency of pick-up (if permitted by the City’s authorized waste hauler) shall be increased if needed to accommodate the amount of trash generated by all uses on the site.
i. On-site parking shall be allowed on approved driveway, garage and/or carport areas only. Parking shall comply with all current City parking regulations. Parking of oversized vehicles must comply with the provisions of Chapter 10.32, Stopping, Standing and Parking, of the Municipal Code. j. Approved on-site parking space(s), including all enclosed garages, shall be kept free and clear to accommodate vehicular parking for renters/guests during all times the unit is in use as a short-term vacation rental. k. The number of adult occupants allowed to occupy any given short-term vacation rental unit shall be limited to two (2) per bedroom/sleeping area. l. The director shall have the authority to impose additional conditions on the use of any given short-term vacation rental to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated.
m. The owner or owner’s authorized agent shall post the current short-term vacation rental permit number, a photograph of the front of the property where the short-term vacation rental unit is located, as well as the number of approved on-site parking spaces available, in any written publication or on any website that promotes the availability or existence of a short-term vacation rental unit.

4. The owner shall comply with all requirements related to a business license under Chapter 5.04, Business Licenses Generally, of the Municipal Code, and related to the transient occupancy tax under Chapter 3.32, Transient Occupancy Tax, of the Municipal Code for the operation of the short-term vacation rental.
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B. Development Standards. Short-term vacation rentals shall conform to the following standards:

1. On-site parking shall be provided as required under Chapter17.44.

2. A private kitchen area, shower, and toilet facilities, and at least one room/area designated as a sleeping area shall be provided in eachunit.

C.Violations. Violations of this section are subject to the following standards.

1. Any violation of this section shall result in issuance of an administrative citation pursuant to Chapter 1.10, Administrative Citations, Penalties, or any other legal methods of enforcement, of the Municipal Code.

2. More than three violations of this section or any of the City’s quality of life ordinances, such as noise violations, disturbing the peace, or creating a public nuisance, within a 12-month period shall be grounds for revocation of the business license and administrative permit, in accordance with provisions of the Code, provided the three violations have been affirmed by a hearing officer in the event they are appealed.

D.Sunset Clause. The provisions in this section shall become inoperative on October 24, 2025, and shall be considered repealed on that date, unless the City Council of Hermosa Beach enacts a new ordinance that becomes effective on or before October 24, 2025, and which deletes or extends that date. No new or renewals of administrative permits and/or business licenses for short-term vacation rentals shall be issued after October 24, 2025, and no permitted short-term vacation rental shall have a right to operate beyond the term of the permit.
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CITY OF HERMOSA BEACH
ORDINANCE NO. 23-1468

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, APPROVING ZONE TEXT AMENDMENT 23-04, TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH

MUNICIPAL CODE RELATING TO SHORT-TERM VACATION RENTALS IN

COMMERCIAL ZONES AND DETERMINE THE AMENDMENT IS

EXEMPT FROM THE CALIFORNIA ENVIRONEMNTAL QUALITY ACT
(CEQA)

THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. On December 14, 2021, City Council adopted Ordinance No. 21- 1440, extending the Short-Term Vacation Rental Pilot Program an additional two years from the program’s adoption in 2019, and implemented revisions to clarify existing requirements.

SECTION 2. The City Council held a duly noticed public hearing on September 12, 2023 to consider a text amendment to portions of Hermosa Beach Municipal Code Title 17.

SECTION 3. Under Section 15061(b)(3) of the California Environmental Quality Act (CEQA), the ordinance qualifies as a “common sense exemption” as CEQA only applies to projects which have the potential for causing a significant effect on the environment.

SECTION 4. The City Council finds the proposed amendments are consistent with the City’s General Plan. The ordinance will also comply with State requirements.

The amendments will not impede the City’s ability to meet its General Plan goals, and the amendments are necessary to carry out the purposes of the Zoning Ordinance, including the orderly planned use of landresources.

SECTION 5. Section 17.40.230 (short-term vacation rentals) of Chapter 17.40 (Conditional Use Permits and Other Permit Standards) of Title 17 (Zoning) is repealed as the substantive provisions in this section are being relocated to Section

17.42.180.

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SECTION 6. Section 17.42.180 (Advertising of short-term rentals prohibited) of Chapter 17.42 (General Provisions, Conditions and Exceptional Uses) of Title 17 (Zoning) is amended to read as follows:

17.42.180 Short-Term Vacation Rentals.

It shall be unlawful for any person to offer or make available for rent or to rent (by way of a rental agreement, lease, license or any other means, whether oral or written) for compensation or consideration a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days and for any person to occupy a residential dwelling, a dwelling unit or a room in a dwelling for less than 30 consecutive days pursuant to a rental agreement, lease, license or any other means, whether oral or written, for compensation or consideration except for shortterm vacation rentals in nonconforming residential dwelling units in certain commercial zones in compliance with the following requirements. No person or entity shall maintain any advertisement of a short-term rental in violation of this section, in any zone.

This section sets forth requirements for the establishment and operation of shortterm vacation rentals in nonconforming residential dwelling units in certain commercial zones.

A.Permit and Operational Requirements. The approval of operation of a shortterm vacation rental shall be subject to the following requirements:

1. Administrative Permit Required. Short-term vacation rentals may be established and operated only after an administrative permit has been approved in compliance with Chapter 17.55. The administrative permit for a short-term vacation rental shall be valid for one calendar year from the date of issuance and must be renewed annually thereafter; provided, that this section remains in effect and has not expired.
a. Prior to approval or renewal of an administrative permit for operation of a short-term vacation rental, the premises shall be inspected by the building official or their designee for compliance with all applicable building and safety codes, as well as compliance with any applicable Municipal Code regulations regarding short-term vacation rentals. If the building official or their designee conducts more than two (2) inspections to verify compliance due to outstanding corrections, the applicant is subject to a reinspection fee for those additional inspections.

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b. An application for a new or renewal of an administrative permit shall include payment of all required and outstanding administrative fees. c. The application submittal shall include a list of the Uniform Resource Locations (URL) where the property is listed online, and the applicant shall keep the list current at all times.
d. Short-term vacation rentals established under this section shall have no vested right to continued existence.

2. Location. Short-term vacation rentals shall only be permitted in nonconforming residential dwellings on properties zoned C-2, C-3, SPA 7, SPA 8, or SPA 11.
a. For purposes of this section, a "nonconforming residential unit" shall mean a residential dwelling unit that was lawfully established and maintained as a dwelling unit as of October 24, 2019. If the unit is converted into a nonresidential use, then it shall be deemed the termination of the existing nonconforming residential use, and thereby the unit loses any nonconforming status as a residential use and loses any right to operate as a short-term vacation rental.

3. Management and Operations Plan. In addition to any other requirements for an application for an administrative permit, or any conditions of approval contained therein, the application to establish and operate a short-term vacation rental shall be accompanied by a managementplan, which shall establish, to the satisfaction of the community development director (director), or their designee, the following:
a. The reasonably prudent business practices that owner or owner’s authorized agent will use to ensure that the short-term vacation rental unit is used in a manner that complies with all applicable laws, rules, regulations, and permits.
b. An identification plaque posted and maintained at all times, within plain view of and legible to the general public, not exceeding six square feet in size, and containing address of premises and permit number, and telephone number of Hermosa Beach Police Department dispatch for complaints regarding condition, operation or conduct of occupants of the unit. The director may alter the size requirement to ensure the plaque is legible from the adjacent public right-of-way.
c. The name, address, and telephone number of a local contact person who shall be available 24 hours per day, seven days per week for the purpose of responding to City staff calls pertaining to complaints regarding the condition, operations, or conduct of
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occupants of the short-term vacation rental or their guests, and if directed by City staff, to personally proceed on site within 30 minutes from the call to resolve the problem.
d. The owner or the owner’s authorized agent shall, upon notification that any occupant or guest of the short-term vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit, respond in a timely and appropriate manner to immediately halt or prevent a recurrence of such conduct. Failure of the owner or the owner’s authorized agent to respond to such calls or complaints regarding the condition, operation, or conduct of the occupants and/or guests of the short-term vacation rental unit in a timely and appropriate manner shall subject the owner to all administrative, legal, and equitable remedies available to the City. e. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the occupants and/or guests of the shortterm vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct or illegal activity, or violate any applicable law, rule or regulation pertaining to the use and occupancy of the short-term vacation rental unit.
f. The owner and/or the owner’s authorized agent shall use reasonably prudent business practices to ensure that the short-term vacation rental unit is used for overnight accommodations purposes only. This shall include using all prudent business practices to prohibit the rental to commercial party businesses.
g. Prior to occupancy of a short-term vacation rental unit, the owner or the owner’s authorized agent shall:
i. Obtain the contact information of the renter.
ii. Provide a copy of the City’s "Good Neighbor" brochure containing these requirements to the renter.
iii. Require the renter to execute a formal acknowledgement they are legally responsible for compliance by all occupants of the short- term vacation rental unit and their guests with all applicable laws, rules, and regulations pertaining to the use and occupancy of the short-term vacation rental unit. iv. The information required in subsections (A)(3)(g)(i) and (A)(3)(g)(iii) of this subsection shall be maintained by the owner or the owner’s authorized agent for a period of three years and be made available upon request to any officer of the City responsible for the enforcement of any provision of the Municipal DocuSign Envelope ID: B69993A4-F873-4CEF-B9A1-79C8BD619391 304 528
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Code or any other applicable law, rule or regulation pertaining to the use and occupancy of the short- term vacation rental unit.
h. The property shall be maintained free of litter and debris. Trash and refuse shall not be left or stored within public view, except in proper containers for the purpose of collection by the City’s authorized waste hauler on scheduled trash collection days. Trash receptacles must be maintained within an enclosure and placed for pick up to comply with the provisions of HBMC 8.12.220 and 8.12.230. The size or number of containers and/or frequency of pick-up (if permitted by the City’s authorized waste hauler) shall be increased if needed to accommodate the amount of trash generated by all uses on the site.
i. On-site parking shall be allowed on approved driveway, garage and/or carport areas only. Parking shall comply with all current City parking regulations. Parking of oversized vehicles must comply with the provisions of Chapter 10.32, Stopping, Standing and Parking, of the Municipal Code. j. Approved on-site parking space(s), including all enclosed garages, shall be kept free and clear to accommodate vehicular parking for renters/guests during all times the unit is in use as a short-term vacation rental. k. The number of adult occupants allowed to occupy any given short-term vacation rental unit shall be limited to two (2) per bedroom/sleeping area. l. The director shall have the authority to impose additional conditions on the use of any given short-term vacation rental to ensure that any potential secondary effects unique to the subject short-term vacation rental unit are avoided or adequately mitigated.
m. The owner or owner’s authorized agent shall post the current short-term vacation rental permit number, a photograph of the front of the property where the short-term vacation rental unit is located, as well as the number of approved on-site parking spaces available, in any written publication or on any website that promotes the availability or existence of a short-term vacation rental unit.

4. The owner shall comply with all requirements related to a business license under Chapter 5.04, Business Licenses Generally, of the Municipal Code, and related to the transient occupancy tax under Chapter 3.32, Transient Occupancy Tax, of the Municipal Code for the operation of the short-term vacation rental.

B. Development Standards. Short-term vacation rentals shall conform to the following standards:

1. On-site parking shall be provided as required under Chapter17.44.

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2. A private kitchen area, shower, and toilet facilities, and at least one room/area designated as a sleeping area shall be provided in each unit.

C.Violations. Violations of this section are subject to the following standards.

1. Any violation of this section shall result in issuance of an administrative citation pursuant to Chapter 1.10, Administrative Citations, Penalties, or any other legal methods of enforcement, of the Municipal Code.

2. More than three violations of this section or any of the City’s quality of life ordinances, such as noise violations, disturbing the peace, or creating a public nuisance, within a 12-month period shall be grounds for revocation of the business license and administrative permit, in accordance with provisions of the Code, provided the three violations have been affirmed by a hearing officer in the event they are appealed.

D.Sunset Clause. The provisions in this section shall become inoperative on October 24, 2025, and shall be considered repealed on that date, unless the City Council of Hermosa Beach enacts a new ordinance that becomes effective on or before October 24, 2025, and which deletes or extends that date. No new or renewals of administrative permits and/or business licenses for short-term vacation rentals shall be issued after October 24, 2025, and no permitted short-term vacation rental shall have a right to operate beyond the term of the permit.

SECTION 7. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

SECTION 8. Effective Date. This Ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937.

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SECTION 9. Certification. The City Clerk is directed to certify the passage and adoption of this ordinance; cause it to be entered into the City’s book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this ordinance, cause it to be published or posted in accordance with California law.

PASSED, APPROVED and ADOPTED on this 26th day, September 2023.

Mayor Raymond A. Jackson
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:

Myra Maravilla, MPA, CMC Patrick Donegan,
City Clerk City Attorney
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State of California )
County of Los Angeles ) ss
City of Hermosa Beach )
October 10, 2023
Certification of Council Action
ORDINANCE NO. 23-1468

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA APPROVING ZONE TEXT AMENDMENT 23-04, TO AMEND PORTIONS OF TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE RELATING TO SHORT-TERM

VACATION RENTALS IN COMMERCIAL ZONES AND DETERMINE THE AMENDMENT IS

EXEMPT FROM THE CALIFORNIA ENVIRONEMNTAL QUALITY ACT (CEQA) I, Myra Maravilla, City Clerk of the City of Hermosa Beach, California, do hereby certify that the above and foregoing Ordinance No. 23-1468 was duly approved and adopted by the City Council of said City at its regular meeting thereof held on the 26th day of September 2023 and passed by the following vote:

AYES: MAYOR JACKSON, MAYOR PRO TEM MASSEY, COUNCILMEMBERS

SAEMANN, FRANCOIS, AND DETOY
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
_____________________________
Myra Maravilla, MPA, CMC
City Clerk
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Short Term Vacation Rental – Public Notice Package
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0740
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023
INTRODUCTION OF AN ORDINANCE AMENDING TITLE 17 OF THE HERMOSA BEACH MUNICIPAL CODE ZONING TEXT AMENDMENT (ZTA 23-02-B) ADDING THE LAND VALUE

RECAPTURE PROGRAM AND AMENDING CRITERIA FOR AFFORDABLE HOUSING AND

CONSIDERATION OF A RESOLUTION AMENDING THE CITY MASTER FEE SCHEDULE TO

ESTABLISH THE LAND VALUE RECAPTURE FEES
(Community Development Director Carrie Tai)
Recommended Action:

Staff recommends City Council:

1. Introduce by title only and waive first reading of an Ordinance of the City of Hermosa Beach, California, approving Zoning Text Amendment (ZTA 23-02-B), to amend the Title 17 of the Hermosa Beach Municipal Code (Zoning Ordinance) to add the Land Value Recapture Program for Affordable Housing, amend certain criteria for affordable housing, and determine the actions are consistent with the PLAN Hermosa Final Environmental Impact Report pursuant to the California Environmental Quality Act (CEQA) (Attachment 1);

2. Adopt a resolution amending the City Master Fee Schedule to establish fees for the Land Value Recapture program for affordable housing and determine the action to be exempt pursuant to the California Environmental Quality Act (Attachment 2); and

3. Direct the City Clerk publish the summary ordinance.

Executive Summary:

At its October 10, 2023 and October 24, 2023 meetings, City Council conducted extensive discussions on the proposed Land Value Recapture (LVR) Program associated with the adopted 2021-2029 Housing Element and requested additional analysis and information pertaining to the program. The following provides the requested program information, proposes to incorporate the LVR Program into the Zoning Ordinance, and establishes associated fees.

Background:

During the development of the Housing Element programs from 2021 through 2023, staff conducted numerous meetings with the community, City Council, and Planning Commission to discuss ways to City of Hermosa Beach Page 1 of 10 Printed on 12/11/2023 powered by Legistar™313
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numerous meetings with the community, City Council, and Planning Commission to discuss ways to develop and implement the Housing Element. At a joint meeting held on February 3, 2021, the City Council and Planning Commission received a presentation from then-consultant John Douglas on general Housing Element principles, as well as strategies to facilitate the development of affordable housing.

One such strategy, the Land Value Recapture (LVR) Program, was included in the Housing Element.

Land Value Recapture is generally described as “capturing” a portion of the increased land value as a result of zoning changes. Initial discussions of the LVR Program were in reference to land that is “upzoned” or “intensified,” but there were no definitive zoning changes at that point. In the case of the Housing Element, the LVR Program would pertain to non-residentially zoned properties permitted to develop residential uses as part of the Housing Element implementation. The adopted 2021-2029 Housing Element committed the City to performing a feasibility study on the LVR Program.

At its August 8, 2023 meeting, the City Council adopted the revised 2021-2029 Housing Element, which was forwarded to the California Housing and Community Development Department (HCD) for certification. The 2021-2029 Housing Element Sites Inventory included the list of sites within the City that are anticipated to accommodate the City’s Regional Housing Needs Assessment (RHNA) allocation. The majority of these sites are non-residentially zoned properties. Because the City is past the State deadline for certification of its Housing Element, State Law now requires the City to complete zone changes prior to certification of the Housing Element.

The City’s RHNA allocation is as follows, with corresponding percentages:
6th Cycle RHNA by Income Category-Hermosa Beach
Income
Level
Very Low Low Moderate Above
Moderate
Total
Units 232 127 106 93 558
Percentage 41.6% 22.8% 19% 16.6% 100%
To effectively incentivize affordable housing units in any proposed residential development, the LVR Program must accompany the Housing Element-related zoning changes that enable residential development on nonresidentially zoned properties. Staff secured the assistance of Kosmont Companies to evaluate a potential fee for the LVR program based on current land values for residential development, construction costs, and similar fees in other jurisdictions. Included in this evaluation was a feasibility analysis to ensure that the presence of an LVR Program would not disincentivize the development of residential development and instead promote development of affordable housing.

The Planning Commission discussed the Housing Element-related zoning changes at its June 20, July 18, and August 15, 2023 meetings, providing input on the LVR Program each time. At its September 19, 2023 meeting, City of Hermosa Beach Page 2 of 10 Printed on 12/11/2023 powered by Legistar™314
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August 15, 2023 meetings, providing input on the LVR Program each time. At its September 19, 2023 meeting, the Planning Commission forwarded a recommendation to City Council for approval of the program, details of which discussed in the section below.

At its October 10, 2023 meeting, City Council received a presentation on and discussed the proposed LVR program, including the analysis prepared by Kosmont Companies. The City Council requested staff evaluate a higher fee than initially recommended, as well as a two-tier fee structure applied to different-sized properties.

At its October 24, 2023 meeting, City Council conducted a public hearing on the recommended Housing Element-related zoning changes. After extensive discussion, City Council adopted the Housing Element-related changes, but deferred adding section 17.39.050 pertaining to Land Value Recapture. City Council requested staff return with additional analysis including: 1) increasing the percentage of affordable units needed to qualify for exemptions from the fee; and 2) information pertaining to commercial property values versus residential property values.

Past Board, Commission, and Council
Actions
Meeting Date Description
February 3, 2021 The City Council and Planning Commission held a joint study session to provide an overview of the Housing Element
update process, explanation of the State requirements for Hermosa Beach’s RHNA, to solicit comments regarding
housing needs, and to receive feedback.

December 21, 2021 City Council conducted a public hearing, adopted the 2021- 2029 Housing Element, and authorized submission to HCD.

June 20, 2023 Planning Commission conducted a public hearing and recommended the City Council adopt the Housing Element
and also discussed zoning text amendments.

July 18, 2023 Planning Commission conducted a study session to discuss the proposed Zoning Text Amendment for Housing Element
implementation.

August 8, 2023 City Council conducted a public hearing and adopted the revised 2021-2029 Housing Element.

August 15, 2023 Planning Commission conducted a study session to discuss the proposed Zoning Text Amendment for the Housing
Element implementation.

September 19, 2023 Planning Commission conducted a public hearing and recommended the City Council adopt the Housing Element
General Plan Map Changes, Zoning Map Changes, and
Zoning Text Amendment, including the LVR Program.

October 10, 2023 City Council conducted a discussion on the proposed Land Value Recapture Program and provided feedback to staff
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implementation.

August 8, 2023 City Council conducted a public hearing and adopted the revised 2021-2029 Housing Element.

August 15, 2023 Planning Commission conducted a study session to discuss the proposed Zoning Text Amendment for the Housing
Element implementation.

September 19, 2023 Planning Commission conducted a public hearing and recommended the City Council adopt the Housing Element
General Plan Map Changes, Zoning Map Changes, and
Zoning Text Amendment, including the LVR Program.

October 10, 2023 City Council conducted a discussion on the proposed Land Value Recapture Program and provided feedback to staff.

October 24, 2023 City Council approved Zone Change 23-01 and Zone Text Amendment 23-02, moving Planning Commission
recommendation and deferred Section 17.39.050 from the
Draft Ordinance relating to Land Value Recapture.

Discussion:

The Housing Element included the LVR program to capture a portion of land value gained from adding residential development capacity to properties zoned for non-residential development. The LVR Program applies to residential or mixed-use developments proposed on non-residentially zoned properties identified in the Housing Element and on the Zoning Map as HE Overlay that do not propose a certain percentage of housing affordable to very low-, low-, or moderate-income units. In other words, the LVR Program would include an exemption option on projects proposing a certain amount of affordable housing. The primary intent of the LVR program is to incentivize the development of affordable housing to meet the City’s RHNA allocation. The second intent is to generate a local funding source to assist in any new affordable units, or to benefit a regional Housing Trust.

In response to City Council requests from October 10, 2023 and October 24, 2023, Kosmont Companies performed an updated and expanded Land Value Recapture Analysis in December 2023, herein referred to as the “LVR Analysis” (Attachment 4).

Proposed Fee
As with the prior analysis, the revised LVR Analysis approaches the LVR Program fees as the equivalent value of a developer’s cost of including affordable housing in its development. The LVR Analysis considered the value of land with residential development potential, the likelihood for State density provisions to be used, housing costs, construction costs, operational costs, and various types of affordable housing funding. Specifically, the LVR Analysis compared the rent collected from affordable housing units to market rate units and determined an impact per square foot from including affordable housing in a housing development.

The equivalent value in the initial analysis from October 2023 identified a range of $66 to $94 per square foot as an equivalent value that could be justified and recommended a $60 per square foot LVR fee. However, basing the LVR fee on the equivalent value would lead to a developer choosing to construct affordable units on-site or to pay the fee. Rather, City Council requested a $10 increase to City of Hermosa Beach Page 4 of 10 Printed on 12/11/2023 powered by Legistar™316
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construct affordable units on-site or to pay the fee. Rather, City Council requested a $10 increase to the per-square-foot fee to increase motivation for including affordable housing in the project. City Council requested analysis of a two-tier fee structure, of $76 (Tier 1) and $104 (Tier 2) per square foot, to be applied to properties of 1-2 units of minimum density and 3 or more units of minimum density, respectively.

The LVR Analysis evaluated this structure and determined that larger properties capable of constructing five or more units are eligible for density bonus, which increases development potential, the tiering of the two proposed LVR fees should correspond to this differentiation. Therefore, staff proposes applying the Tier 1 fee to properties with a minimum density of 1 to 4 units, and the Tier 2 fee to those with a minimum density of 5 or more units.

In addition to evaluating equivalent value, the LVR Analysis evaluated the Market Feasibility to assess tolerance for the LVR fee. The Market Feasibility evaluates the cost of development/construction against the market cost of residential development. Currently, with development costs in the range of $400 to $600 per square foot, and a market price of $800 to $1,000 for residential development, the residual land value has a range of approximately $400 per square foot, with a worst case scenario of $200 to $400 per square foot range. The City’s proposed land value recapture fee would be $76 (Tier 1)/$104 (Tier 2) per square foot on market-rate only residential or mixed-use developments.

The LVR Analysis acknowledges the infancy of the program and uncertain market conditions.

Considering changing economic conditions and the inception of a new program, the LVR Analysis recommends regular monitoring and updates. If approved, the required fee(s) would be set by resolution of the City Council, included as Attachment 2.

Affordability Percentage
Initial Affordability Tier Recommendation
Staff initially proposed thresholds for exemption as follows: 10 percent very-low income; 15 percent low income; or 20 percent moderate income units in a proposed residential or mixed-use development. The thresholds of very-low, low, and moderate units for inclusion in a residential project to qualify for exemption from the Land Value Recapture Program fee were established based on an evaluation of local market conditions in conjunction with City and State zoning and entitlement provisions. Factors evaluated include supportable lease and ownership values under the three affordability thresholds, local market rents, local dwelling unit bedroom counts and unit sizes, local property values, and State Density Bonus Law. Ultimately, the percentages were established at ratios that seek to balance the incentives to deliver one affordability threshold versus another and support the development of affordable housing units as part of a given project. The Planning Commission concurred and recommended this affordability tier.

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Revised Affordability Tier Proposal
At its October 24, 2023 meeting, City Council considered the affordability tiers and requested staff evaluate increasing the tiers by 5 to 10 percent each to further the City’s goal to incentivize affordable housing. The LVR Analysis re-evaluated the percentages, along with the request from City Council’s October 10, 2023 meeting to increase the proposed LVR Program fees. In evaluating the affordability tiers, the LVR Analysis also considered the newly adopted AB 1287, passed in October 2023, which further increased the density bonus allowances for projects reaching the current maximum levels of density bonus allowances. AB 1287 increases the desirability of combining different levels of affordable housing to benefit from added density, and increases waivers and concessions which allow by-right deviation from local development standards.

Based on the LVR Analysis, the following affordability tiering for exemption could be justified as follows:

Minimum Density
Four or fewer units Five or more units
Very-Low 1 affordable unit (any level) 15%
Low 15%
Moderate 25%
Moderate-Income Rental Housing/Density Bonus
State Density Bonus Law allows projects with residential units to qualify for density bonus when it proposes a certain amount of affordable housing. For the moderate-income category, only for-sale units are currently eligible for density bonus. Given that over 50 percent of the Hermosa Beach population are renters (>50 percent) and over 30 percent of households fall into the moderate-income level, allowing moderate-income rental units to qualify for the density bonus program further incentivizes housing to match community characteristics. Staff recommends minor changes to Section 17.42.100(B)(3) of the HBMC for this purpose.

Proposed Zoning Text Amendment Language
LVR Program-Section 17.39.050 (NEW)
The LVR Program would be implemented in the City’s Zoning Ordinance, within a newly created chapter that pertains to sites designated on the Housing Element Sites Inventory and also on the Zoning Map with the “HE Overlay.” The following excerpt from the proposed Zoning Text Amendment details the applicability of the LVR Program to eligible properties.

17.39.50 Land Value Recapture for Affordable Housing
A. Sites designated as (--HE) that have underlying non-residential zones are subject to the City’s Land Value Recapture Program for Affordable Housing, as follows:

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1. Proposed projects that are entirely non-residential are exempt.

2. Projects on sites with a Sites Inventory capacity are subject to the Land Value Recapture Program fee, as follows:
a. For sites on the Sites Inventory with a capacity of 5 or more units:

1. Projects proposing a minimum of 15% very-low income units, 15% lowincome units, or 25% moderate income units, or combination thereof, (calculated from base density) shall be exempt from the fee;

2. Projects proposing a portion of the above affordability requirements shall be subject to the corresponding proportional amount of the fee.

3. Projects not proposing affordable units shall be subject to the Tier 2 fee. b. For sites on the Sites Inventory with a capacity of 1 to 4 dwelling units:

1. Projects constructing to minimum density and proposing at least 1 affordable unit (very low, low, or moderate) are exempt from the fee.

2. Projects not proposing affordable units shall be subject to the Tier 1 fee.

B. The fee amounts for the Land Value Recapture Program for Affordable Housing shall be set by City Council resolution.

Staff also noticed minor refinements were needed to existing language relating to the quality of affordable units as compared to market rate units. Staff proposes to incorporate minor changes to sections 17.42.100(A)(3) of the Municipal Code requiring that affordable units be dispersed throughout a development and have equivalent size and bedroom counts to comparable market rate units. The changes would also allow projects with moderate-income rental units to utilize the State Density Bonus law in a manner similar to for-sale projects.

Affordable Housing Quality-Section 17.42.100(A)(3) (AMEND)

3. Compatibility. All affordable housing units shall be dispersed within market-rate projects whenever feasible. Affordable housing units within market-rate projects shall be comparable with the size and bedroom count, design, and use of market-rate units in appearance, use of materials, and finished quality. The design and appearance of the affordable housing units shall be compatible with the design of the total housing development project and consistent with the surrounding neighborhood. Forms, materials and proportions that are compatible with the character of the surroundings shall be used.

B. Moderate Income-Density Bonus-Section 17.42.100(B)(2) (AMEND)

2. Applicability. The provisions of subsection (B)(1) of this section shall be applicable to residential projects of five (5) or more units, and senior citizen housing developments of at least thirty-five (35) units. Additionally, projects proposing a percentage of moderateincome rental units equivalent to the percentage of for-sale moderate income units may utilize the corresponding density bonus allowance specified in Government Code City of Hermosa Beach Page 7 of 10 Printed on 12/11/2023 powered by Legistar™319
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Section 65915.

Comparable Data from Other Jurisdictions
The LVR Program is not formally considered an inclusionary housing ordinance since it does not mandate affordable housing. Over 30 percent of cities in the State of California have programs to facilitate the creation of affordable housing. Most are inclusionary housing ordinances, which mandate the inclusion of a certain percentage of affordable housing on residential developments. The following table lists select cities in Los Angeles and Orange Counties that have programs to require or incentivize affordable housing. One notable difference is that Hermosa Beach seeks to exceed the equivalency factor to motivate actual production of affordable housing.

Affordable Housing Programs
Jurisdiction Inclusionary Affordability
Threshold
Fee Fee Unit
Rancho Palos Verdes Yes 5-10% $308,716 Unit
Santa Monica Yes 5-30% $41.39-
$48.35
Sq. Ft.

Long Beach Yes 11% $37.90-
$38.50
Sq. Ft.

Newport Beach Yes 7% $33.80-
$36.60
Sq. Ft.

Laguna Beach Yes 25% $247,317-
$348,197
Unit
Huntington BeachYes 10% $3-$36 Sq. Ft.

Use of Land Value Recapture Funds
The use of funds generated through the LVR Program would be used to fund creation of affordable housing in the City. This could be in the form of development subsidies for construction of new affordable housing or funding towards conversion of existing units to affordable housing. All funds would be for the purpose of funding or subsidizing affordable housing and public services supporting added population from additional housing.

Furthermore, the City could also contribute to the South Bay Regional Housing Trust, which is in the process of being established by the South Bay Cities Council of Governments (SBCCOG). SBCCOG is pursuing grant funds to secure resources to form the Housing Trust, expected in late 2023. City Managers from cities within the South Bay, including Hermosa Beach, have worked for over a year on developing the framework and bylaws for a Housing Trust. The Housing Trust would be created to fund housing to assist the homeless populations and persons and families of extremely low, very low, and low income within the South Bay.

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HCD Oversight
Assembly Bill (AB) 1505, passed in 2018, authorizes cities to adopt inclusionary housing ordinances that require affordable housing. AB 1505 also includes provisions for HCD review of an inclusionary housing ordinance if it requires more than 15 percent of the total number of units to be in the lowincome category. The proposed LVR Program would not trigger this requirement.

General Plan Consistency
PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. Upon adoption, the 2021-2029 Housing Element became a component of PLAN Hermosa. The General Plan Amendment, Zone Change, and Zoning Text Amendment implement the following policies of the Housing Element.

Program 7. Land Value Recapture
Program Description: When land is rezoned to allow higher intensity uses, the value of that property typically increases. Land value recapture refers to a policy requiring that a portion of the increased value be dedicated to a public benefit, such as affordable housing. In connection with the rezoning process required under Program 9, the City will conduct a feasibility study to determine whether a land value recapture program should be established for the properties to be rezoned, and if so, what specific requirements are appropriate.

Environmental Review
Pursuant to the California Environmental Quality Act (CEQA), the City evaluated the, Zoning Changes, and Zoning Text Amendments against the PLAN Hermosa Final Environmental Impact Report (EIR) (State Clearinghouse Number 2015081009), certified on August 22, 2017, and determined that an Addendum to the PLAN Hermosa Final EIR is the appropriate document for disclosing changes to the PLAN Hermosa EIR in accordance with Section 15162 through of the CEQA State Guidelines, in that there are no significant effects not previously discussed in the PLAN Hermosa Final EIR.

The establishment of the Land Value Recapture fee is statutorily exempt pursuant to the California Environment Quality Act (CEQA) pursuant to CEQA Guidelines section 15378 (b)(4), which provides that CEQA does not apply to the creation of governmental funding mechanisms that do not involve a commitment to a particular project which may result in a significant impact to the environment. The fee does not identify or permit any specific future project or projects.

Public Notification
For the December 12, 2023, City Council public hearing, a legal ad was published on November 30, 2023 in the Beach Reporter, a newspaper of general circulation. As of the writing of the report, staff has received no public comments.

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Fiscal Impact:

There is no fiscal impact associated with the recommended action. Staff does not anticipate an increase in staff time associated with the administration of the LVR Program, therefore the current precise development plan application fee would be sufficient to recover the cost of staff time.

Any LVR fees to be collected would be reserved for use in support of future affordable housing projects, and would not be available for use as General Fund revenue. Because the LVR fee accompanies new land use regulations, the exact amount of LVR fees to be collected is currently unknown and unable to be projected at this time.

Attachments:

1. Draft Ordinance-Zoning Text Amendment

2. Draft Resolution-LVR Fees

3. Redlined Zoning Text Amendment

4. Revised LVR Analysis-December 2023

5. Link to the February 3, 2021 Joint City Council/Planning Commission Staff Report

6. Link to the December 21, 2021 City Council Staff Report

7. Link to the June 20, 2023 Planning Commission Staff Report

8. Link to the July 11, 2023 City Council Staff Report

9. Link to the July 18, 2023 Planning Commission Staff Report

10. Link to the August 8, 2023 City Council Staff Report

11. Link to the August 15, 2023 Planning Commission Staff Report

12. Link to the September 19, 2023 Planning Commission Staff Report

13. Link to the October 10, 2023 City Council Staff Report

14. Link to the October 24, 2023 City Council Staff Report Respectfully Submitted by: Carrie Tai, AICP, Community Development Director Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
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CITY OF HERMOSA BEACH
ORDINANCE NO. 23-XX

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HERMOSA

BEACH, CALIFORNIA, AMENDING THE HERMOSA BEACH MUNICIPAL

CODE TO IMPLEMENT THE LAND VALUE RECAPTURE PROGRAM FOR

AFFORDABLE HOUSING AND DETERMINE PURSUANT TO THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT THAT THE PROJECT IS CONSISTENT WITH

THE PLAN HERMOSA ENVIRONMENTAL IMPACT REPORT

THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1. Section 17.39.050 (Land Value Recapture for Affordable Housing) is hereby added to Title 17 (Zoning) of the Hermosa Beach Municipal Code to read as follows:

17.39.50 Land Value Recapture for Affordable Housing
A. Sites designated as (--HE) that have underlying non-residential zones are subject to the City’s Land Value Recapture Program for Affordable Housing, as follows:

1. Proposed projects that are entirely non-residential are exempt.

2. Projects on sites with a Sites Inventory capacity are subject to the Land Value Recapture Program fee, as follows:
a. For sites on the Sites Inventory with a capacity of 5 or more units:

1. Projects proposing a minimum of 15% very-low income
units, 15% low-income units, or 25% moderate income
units, or combination thereof, (calculated from base
density) shall be exempt from the fee;

2. Projects proposing a portion of the above affordability requirements shall be subject to the corresponding
proportional amount of the fee.

3. Projects not proposing any affordable units shall be subject to the Tier 2 fee.
b. For sites on the Sites Inventory with a capacity of 1 to 4 dwelling units:

1. Projects constructing to minimum density and proposing at least 1 affordable unit (very low, low, or moderate) are exempt from the fee.
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2. Projects not proposing any affordable units shall be subject to the Tier 1 fee.

B. The fee amounts for the Land Value Recapture Program for Affordable Housing shall be set by City Council resolution.

SECTION 2. Section 17.42.100(A)(3) of Title 17 (Zoning) of the Hermosa Beach Municipal Code is hereby amended as follows:

2. Compatibility. All affordable housing units shall be dispersed within market-rate projects. Affordable housing units within market-rate projects shall be comparable with the size and bedroom count, design, and use of market-rate units in appearance, use of materials, and finished quality. The design and appearance of the affordable housing units shall be compatible with the design of the total housing development and consistent with the surrounding neighborhood.

Forms, materials and proportions that are compatible with the character of the surroundings shall be used.

SECTION 3. Section 17.42.100(B)(2) of Title 17 (Zoning) of the Hermosa Beach Municipal Code is hereby amended as follows:

2. Applicability. The provisions of subsection (B)(1) of this section shall be applicable to residential projects of five (5) or more units, and senior citizen housing developments of at least thirty-five (35) units.

Additionally, projects proposing a percentage of moderate-income rental units equivalent to the percentage of for-sale moderate income units may utilize the corresponding density bonus allowance specified in Government Code Section 65915.

SECTION 4. Land Value Recapture Program. Regarding proposed Section

17.39.050, the City makes the following findings:

1. The City’s 2021-2029 Housing Element Sites Inventory identifies sites that may be used to meet the City’s Regional Housing Needs Assessment (RHNA) allocation. The City’s RHNA allocation consists of over 60 percent of units in the very low- and low-income categories.

2. Due to lack of available residentially zoned land, most of the sites in the Sites Inventory are on non-residentially zoned sites.

3. The City must amend the zoning in order to allow for residential or mixed-use development on non-residentially zoned sites.

4. The City’s Housing Element includes strategies to facilitate the creation of affordable housing, including very low-, low-, and moderate-income units.
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5. There are currently no affordable housing units in the City.

6. As a part of the rezoning effort, the City wishes to capture land value associated with the zoning amendments which enable residential development on non-residentially zoned sites.

7. In accordance with California Government Code 66001, the City Council finds:
a. The purpose of the fee (if applicable) is to create much needed affordable residential units in the City.
b. Any fees paid would be to fund the creation of affordable residential units and any associated services required by those units (open space, residential amenities, etc).
c. The amount of the fee is calculated to be the equivalent cost of creating affordable residential units on-site, on nonresidentially zoned properties that now have the ability to include residential development. There is a reasonable
relationship to requiring properties that can now include residential development (and may be the bulk of the new residential units coming online in the City) to offset the lack of affordable units in each project with the fee.
d. The City has an established need for affordable housing, as supported by the adopted 2021-2029 Housing Element.

SECTION 5. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remainder of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof is declared invalid or unconstitutional.

SECTION 6. Effective Date. This Ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937, or upon certification of the City’s 2021-2029 Housing Element (6th Cycle) by the California Department of Housing and Community Development, whichever is later.

SECTION 7. Certification. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City’s book of 325

original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law.

PASSED, APPROVED and ADOPTED on this 12th day of December, 2023.

Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Patrick Donegan
City Clerk City Attorney
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CITY OF HERMOSA BEACH
RESOLUTION 23-XXXX

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

CALIFORNIA AMENDING THE CITY MASTER FEE SCHEDULE TO ESTABLISH

FEES FOR THE LAND VALUE RECAPTURE PROGRAM FOR AFFORDABLE

HOUSING
WHEREAS, at its December 12, 2023, City Council adopted an ordinance to add Section 17.39.050 to the Hermosa Beach Municipal Code, to establish the Land Value Recapture Program for affordable housing; and WHEREAS, the City produced an analysis prepared by a professional services firm with expertise in real estate and development to justify the fees associated with the Land Value Recapture Program; and
WHEREAS, the City’s 2021–2029 Housing Element Sites Inventory identifies sites that may be used to meet the City’s Regional Housing Needs Assessment (RHNA) allocation. The City’s RHNA allocation consists of over 60 percent of units in the very low and low income categories; and
WHEREAS, due to lack of available residentially zoned land, most of the sites in the Sites Inventory are on non-residentially zoned sites; and WHEREAS, the City must amend the zoning in order to allow for residential or mixed-use development on non-residentially zoned sites; and WHEREAS, the City’s Housing Element includes strategies to facilitate the creation of affordable housing, including very low, low, and moderate income units; and
WHEREAS, there are currently no affordable housing units in the City.

WHEREAS, as a part of the rezoning effort, the City wishes to capture land value associated with the zoning amendments which enable residential development on non-residentially zoned sites; and
WHEREAS, in accordance with California Government Code 66001, the City Council finds:

1. The purpose of the fee (if applicable) is to create much needed affordable residential units in the City.
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2. Any fees paid would be to fund the creation of affordable residential units and any associated services required by those units (open space, residential amenities, etc).

3. The amount of the fee is calculated to be the equivalent cost of creating affordable residential units on-site, on non-residentially zoned properties that now have the ability to include residential development. There is a reasonable relationship to requiring properties that can now include residential development (and may be the bulk of the new residential units coming online in the City) to offset the lack of affordable units in each project with the fee; and

4. The City has an established need for affordable housing, as supported by the adopted 2021–2029 Housing Element; and WHEREAS, the establishment of the Land Value Recapture fee is statutorily exempt pursuant to the California Environment Quality Act (CEQA) pursuant to CEQA Guidelines section 15378 (b)(4), which provides that CEQA does not apply to the creation of governmental funding mechanisms that do not involve a commitment to a particular project which may result in a significant impact to the environment. The fee does not identify or permit any specific future project or projects.

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

SECTION 1. City Council hereby amends the City’s Master Fee Schedule to establish a Land Value Recapture Fee (Tier 1) of $76 per square foot for the following:
1) Development projects on properties with a minimum density of 4 units or fewer and proposing less than 1 dwelling unit of affordable (very-low, low, or moderate income) housing.

SECTION 2. City Council hereby amends the City’s Master Fee Schedule to establish a Land Value Recapture Fee (Tier II) of $104 per square foot for development projects on properties with a minimum density of 5 units or more proposing less than 15 percent very-low income, 15 percent low income, or 25 percent moderate-income units.

PASSED, APPROVED, and ADOPTED on this 12th day of December , 2023. 328

Mayor Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Patrick Donegan
City Clerk City Attorney
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Section 17.39.050 (Land Value Recapture for Affordable Housing) is hereby added to Title 17 (Zoning) of the Hermosa Beach Municipal Code to read as follows:

17.39.50 Land Value Recapture for Affordable Housing
A. Sites designated as (--HE) that have underlying non-residential zones are subject to the City’s Land Value Recapture Program for Affordable Housing, as follows:

1. Proposed projects that are entirely non-residential are exempt.

2. Projects on sites with a Sites Inventory capacity are subject to the Land Value Recapture Program fee, as follows:
a. For sites on the Sites Inventory with a capacity of 5 or more units:

1. Projects proposing a minimum of 15% very-low income
units, 15% low-income units, or 25% moderate income
units, or combination thereof, (calculated from base
density) shall be exempt from the fee;

2. Projects proposing a portion of the above affordability requirements shall be subject to the corresponding
proportional amount of the fee.

3. Projects not proposing any affordable units shall be subject to the Tier 2 fee.
b. For sites on the Sites Inventory with a capacity of 1 to 4 dwelling units:

1. Projects constructing to minimum density and proposing at least 1 affordable unit (very low, low, or moderate) are exempt from the fee.

2. Projects not proposing any affordable units shall be subject to the Tier 1 fee.

B. The fee amounts for the Land Value Recapture Program for Affordable Housing shall be set by City Council resolution.

Section 17.42.100(A)(3) of Title 17 (Zoning) of the Hermosa Beach Municipal Code is hereby amended as follows:

Compatibility. All affordable housing units shall be dispersed within marketrate projects. Affordable housing units within market-rate projects shall be comparable with the size and bedroom count, design, and use of market-rate units in appearance, use of materials, and finished quality. The design and appearance of the affordable housing units shall be compatible with the design of the total housing development and consistent with the surrounding neighborhood. Forms, materials and proportions that are compatible with the character of the surroundings shall be used.
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Section 17.42.100(B)(2) of Title 17 (Zoning) of the Hermosa Beach Municipal Code is hereby amended as follows:

2. Applicability. The provisions of subsection (B)(1) of this section shall be applicable to residential projects of five (5) or more units, and senior citizen housing developments of at least thirty-five (35) units.

Additionally, projects proposing a percentage of moderate-income rental units equivalent to the percentage of for-sale moderate income units may utilize the corresponding density bonus allowance specified in Government Code Section 65915.
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LAND VALUE RECAPTURE ANALYSIS

HERMOSA BEACH, CA

December 2023
Prepared By:

KOSMONT COMPANIES
1601 N. Sepulveda Blvd. #382
Manhattan Beach, CA 90266
Telephone: (424) 297-1070
www.kosmont.com
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HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS
Table of Contents

1.0 Background & Summary................................................................................................. 3

2.0 Fee Equivalency............................................................................................................. 4

2.1 Maximum Monthly Housing Expenditures (Multifamily / For Rent)................................ 4

2.2 Market Unit Size, Distribution, & Rent .......................................................................... 5

2.3 State Density Bonus Provisions ................................................................................... 5

2.4 Impact on Rental Revenue........................................................................................... 6

2.5 Capitalized Value......................................................................................................... 7

2.6 Value Impact Per Square Foot..................................................................................... 7

2.7 For Sale Developments ............................................................................................... 8

3.0 Market Capacity ............................................................................................................. 9

3.1 Incremental Value........................................................................................................ 9

4.0 Hypothetical Development Program Pro Forma.............................................................11

5.0 Appendices ...................................................................................................................21 Appendix A: Calculation of Maximum Monthly Housing Expenditures / Rent .........................22 Appendix B: Sample Rent & Unit Size Comparables .............................................................23 Appendix C: Estimated Value Impact Per Square Foot for Different Unit Counts...................25 Appendix D: Estimated Value Impact Per Square Foot for One to Four Units........................26 Appendix E: Hypothetical Development Pro Forma ...............................................................27 Index of Tables & Figures
Table 1: Household Size, Income Adjustment, & Monthly Utility Allowance Assumptions .......... 4 Table 2: Estimated Maximum Monthly Rent for Very Low-, Low-, and Moderate-Income Households................................................................................................................................ 5 Table 3: Assumed Unit Size & Distribution, Market Rent............................................................ 5 Table 4: Average Rent (Including Income Restricted Units) ....................................................... 6 Table 5: Delta Between Market & Average Rent ........................................................................ 7 Table 6: Estimated Capitalized Impact to Value of Including Income Restricted Units................ 7 Table 7: Gross Leasable Square Feet........................................................................................ 8 Table 8: Value Impact Per Square Foot ..................................................................................... 8 Figure 1: Hypothetical Small Site Pro Forma – Market Rate Project (LVR Fee Paid) ................12 Figure 2: Hypothetical Medium Site Pro Forma – Market Rate Project (LVR Fee Paid).............13 Figure 3: Hypothetical Medium Site Pro Forma – Project w/ Very Low-Income Unit(s)..............14 Figure 4: Hypothetical Medium Site Pro Forma – Project w/ Moderate-Income Unit(s)..............15 Figure 5: Hypothetical Medium Site Pro Forma –Very Low- & Moderate-Income Unit(s)...........16 Figure 6: Hypothetical Large Site Pro Forma – Market Rate Project (LVR Fee Paid)................17 Figure 7: Hypothetical Large Site Pro Forma – Project w/ Very Low-Income Unit(s) .................18 Figure 8: Hypothetical Large Site Pro Forma – Project w/ Moderate-Income Unit(s).................19 Figure 9: Hypothetical Large Site Pro Forma – Very Low- & Moderate-Income Unit(s) .............20 333
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 3

1.0 Background & Summary
The City of Hermosa Beach (“City”) retained Kosmont Companies (“Kosmont”) to evaluate potential provisions of the City’s proposed Land Value Recapture (“LVR”) program. The LVR program seeks to retain portions of land value added to properties within certain commercial corridors on which the City may allow residential development through rezoning actions. The LVR program is intended to produce affordable housing within the City. Under the LVR program, developments would pay a fee to support the development of affordable housing units elsewhere in the City or alternatively, include affordable housing within the project. This document (“Analysis”) summarizes the analysis completed in evaluating potential LVR program elements and includes three primary elements: (i) an analysis of the estimated equivalency of the fee versus the economics of including affordable units in a given project, (ii) a discussion of the proposed fee amounts and ability of the market to support the same, and (iii) order of magnitude pro forma for hypothetical developments illustrating the potential economics of the LVR program.

Pursuant to guidance from the City Council and City leadership, the LVR program evaluated herein is framed around a requirement that residential projects include a set-aside of (i) 15% very low-income units, (ii) 15% low-income units, (iii) 25% moderate-income units, or alternatively (iv), pay a fee of approximately $76 per net residential square foot for project with four or fewer dwelling units, or approximately $104 for developments with five or more dwelling units.

While every development is relatively unique, pursuant to the Analysis highlighted herein, these potential fee amounts are generally thought to be sufficient to induce some projects to include affordable housing units as part of a given development. Some projects would also be expected to elect to pay the fee rather than include affordable units. Additionally, the fee appears low enough so as not to obstruct the development of residential uses in newly eligible areas of the City. Finally, it is expected that the City will need to regularly revisit the amount of the fee, and potentially the exemption set-aside requirements, as fundamental inputs and calculations highlighted in this Analysis will change over time.
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HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 4

2.0 Fee Equivalency
The first element of the Analysis summarized herein is the calculation of the general economic equivalency of including a prescribed percentage and depth of (very low-, low-, or moderateincome) affordable housing within a given development versus a set fee. This calculation is not an evaluation of what the market can bear, but rather an estimate of the effective cost of requiring a development to restrict units to 15% very low-, 15% low-, or 25% moderate-income households.

The assumptions presented in this section represent one of multiple potential development scenarios evaluated as part of the Analysis completed, though could generally be considered a baseline set of assumptions. The assumptions herein are based on a review and modeling of inputs including real estate market conditions specific to the City, current affordable housing guidelines in the State of California (“State”), Los Angeles County Development Authority (“LACDA”) guidance on monthly housing expenditures for utilities, and the potential relationship between the LVR program and State Density Bonus Law (“Density Bonus”, Government Code § 65915 – 65918), including recent changes under Assembly Bill 1287 (“AB 1287”).

2.1 Maximum Monthly Housing Expenditures (Multifamily / For Rent) Maximum monthly affordable housing expenditures were calculated based on Health & Safety Code § 50053 which provides that very low-, low-, and moderate-income households shall not expend more than 30% of 50%, 60%, and 110% of the area median income (“AMI”) on housing, respectively. The AMI for Los Angeles County as published by the California Department of Housing and Community Development (“HCD”) is $98,200 for 2023. The calculated amounts were adjusted for unit sizes (bedrooms) and household size (persons) based on HCD guidance. To determine the maximum amount of monthly rent as a share of total housing expenditures, allowances for utilities as published by LACDA for the 2023 all electric schedule were deducted from the calculated amounts. It was assumed that the cost of trash service would be included in rent. The household size assumptions and utility allowances follow in Table 1 below.

Table 1: Household Size, Income Adjustment, & Monthly Utility Allowance Assumptions Source: HCD, LACDA, Kosmont (2023)
Based on these factors, the maximum monthly rent for very low-, low-, and moderate-income households were calculated as provided in Table 2 below. Additional details are provided in Appendix A: Calculation of Maximum Monthly Housing Expenditures / Rent on page 22.

Studio 1 2 3
Household Size (Persons) 1 2 3 4
Household Size Adjustment 70% 80% 90% 100%
Monthly Utility Allowance 151$ 185$ 220$ 267$
Bedrooms
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HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 5
Table 2: Estimated Maximum Monthly Rent for Very Low-, Low-, and Moderate-Income Households Source: HCD, HSC § 50053, LACDA, Kosmont (2023)

2.2 Market Unit Size, Distribution, & Rent
Based on a review of data from sources including CoStar, Rent.com, Zillow, and the Los Angeles County Office of the Assessor, assumptions on the square footage of units of different sizes (bedrooms), the ratio of unit sizes, and market rents were developed. A summary of these assumptions follows in Table 3 below and additional information on sample comparables is provided in Appendix B: Sample Rent & Unit Size Comparables on page 23. For reference, monthly market rents are based on rates of $4.75 / $4.50 / $4.00 / $3.75 per square foot for studio / one-bedroom / two-bedroom / three-bedroom units, respectively, and are considered moderately conservative relative to general market comparables in the City.

Table 3: Assumed Unit Size & Distribution, Market Rent
Source: CoStar, Kosmont, Rent.com, Zillow (2023)

2.3 State Density Bonus Provisions
Density Bonus law allows residential developments that include income restricted units to develop more units than may otherwise be provided under City density regulations. The increase in total units allowed is based on the percentage and depth of affordability provided. Density Bonus law applies to developments with five or more units, includes a roundup provision on calculations, and provides for other concessions by right including increases in height, and reductions in setback requirements. For reference Density Bonus provisions for moderate income units generally only apply to for sale product, however, the City proposes to permit Density Bonus provisions to apply to moderate income for rent product as well.

The following are examples of how Density Bonus provisions can be applied, assuming a residential development with 100 “base” dwelling units:
• If 15 units were restricted to very low-income households, a total of 150 units could be developed.

Studio 1 2 3
Very Low 708$ 797$ 885$ 961$
Low 880 993 1,106 1,206
Moderate 1,739 1,975 2,210 2,434
Maximum
Monthly Rent
Bedrooms
Studio 1 2 3
Ratio 15% 45% 35% 5%
Square Feet 475 700 950 1,150
Market Rent $ 2,256 $ 3,150 $ 3,800 $ 4,313
Bedrooms
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HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 6
• If 15 units were restricted to low-income households, a total of 128 units could be developed.
• If 25 units were restricted to moderate-income households, a total of 120 units could be developed.

The calculations in this Summary assume that a development including a sufficient number of affordable units to be exempt from the LVR fee would utilize the benefits of Density Bonus Law.

The contemplated LVR program requirement of 15% very low-, 15% low-, or 25% moderateincome units would entitle a developer to increase the total number of units in a development by 50%, 27.5%, and 20.0%, respectively.

For reference, AB 1287 was recently codified, and provides for additional increases in density should projects maximize very low-, low-, or moderate-income unit dedications and bonuses (15%, 24%, and 44% respectively). Under those circumstances additional bonuses for very lowor moderate-income units are permitted to be developed and additional bonuses are available.

Kosmont modeled the provisions of AB 1287 and found the provisions to be accretive for some of the hypothetical development programs. Ultimately the potential benefit of the new provisions may depend on the capacity to efficiently fit additional units on a given site.

2.4 Impact on Rental Revenue
Despite the accretive provisions of Density Bonus law, the inclusion of affordable units within a residential development was generally found to have a negative impact on overall rental revenue.

It is assumed that market-rate and affordable units will have similar operating costs. The overall impact to blended gross rent is provided below in Table 4. For reference, the figures are compared to assumed market rents illustrated above, and blended figures are weighted averages based on unit bedroom count distributions / ratios illustrated in Table 3 above.

Table 4: Average Rent (Including Income Restricted Units) Source: Kosmont (2023)
Calculation: ((Market Rent x Market Units) + (Affordable Rent x Affordable Units)) / Total Units As illustrated in Table 5 below, this calculation provides that a 115-unit residential development that included 25 units restricted to moderate income households with 15% studio / 45% onebedroom / 35% two-bedroom / 5% three-bedroom units would realize an average reduction in gross revenue of $262 for each of the 115 units, each month.

Average Rent Studio 1 2 3 Blended
Very Low $ 2,101 $ 2,915 $ 3,508 $ 3,977 3,054$
Low 2,095 2,897 3,484 3,948 3,035
Moderate 2,149 2,905 3,469 3,921 3,040
Bedrooms
337
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 7
Table 5: Delta Between Market & Average Rent
Source: Kosmont (2023)
Calculation: Market Rent – Average Rent

2.5 Capitalized Value
Multifamily real estate is generally valued based on capitalization (“cap”) rates whereby the present value of a given property is equal to the net annual rental income divided by the cap rate.

Cap rates represent the initial rate of return on the total cost of project investment. Cap rates in the City are generally lower than other regional markets, indicating that investors are willing to pay more for properties in the City than they would for another property with the same income stream in an inferior market with more perceived risk. In this step of the Analysis, the impact of the inclusion of affordable housing units within a given development was evaluated on a present value basis utilizing a hypothetical 4.5% cap rate. This rate is higher than recent multifamily property transactions in the City, however is thought to be reasonable on a forward-looking basis as cap rates are increasing due to increases in interest rates and required rates of return. For reference, a lower assumed cap rate would increase the value impact per square foot discussed in Section 2.6 below.

The total value / cost impacts based on a 150-, 128-, and 120-unit development that included 15% very low-, 15% low-, or 25% moderate-income units, respectively is provided in Table 6 below (figures have been rounded).

Table 6: Estimated Capitalized Impact to Value of Including Income Restricted Units Source: Kosmont (2023)
Calculation: Delta Between Market & Average Rent x Total Units

2.6 Value Impact Per Square Foot
The final step of this method of evaluation is to consider the impact to value on a per square foot basis. The total leasable square footage, and impact to value on a per square foot basis are illustrated in Table 7 and Table 8 below. These figures reflect the unit square footages identified Delta From Market Studio 1 2 3 Blended
Very Low $ 155 $ 235 $ 292 $ 335 $ 248
Low 161 253 316 364 267
Moderate 108 245 331 391 262
Bedrooms
Studio 1 2 3 Blended
Very Low $ 6,200,000 $ 9,400,000 $ 11,700,000 $ 13,400,000 $ 9,900,000 Low 5,500,000 8,600,000 10,800,000 12,400,000 9,100,000 Moderate 3,400,000 7,800,000 10,600,000 12,500,000 8,400,000 Capitalized
Impact to Value
Bedrooms
338
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 8
in Table 3 above, and the total unit counts identified in Section 2.3 above (e.g., a 150-, 128-, and 120-unit development).

Table 7: Gross Leasable Square Feet
Source: Kosmont (2023)
Calculation: Unit Square Feet x Total Units
Table 8: Value Impact Per Square Foot
Source: Kosmont (2023)
Calculation: Capitalized Impact to Value / Gross Leasable Square Feet Based on the blended rates in Table 8 above, and given the assumptions identified herein, levying a fee of $86 – 92 per net (leasable) square foot of residential development would conceptually be considered economically equivalent to a developer as delivering affordable housing as part of a given development (assuming a 100-dwelling unit project before considering density bonuses). A table and chart showing the estimated equivalency for different project sizes / dwelling unit counts can be found in Appendix C: Estimated Value Impact Per Square Foot for Different Unit Counts on page 25. Additionally, figures for developments with one to four units for which Density Bonus provisions do not apply is provided in Appendix D: Estimated Value Impact Per Square Foot for One to Four Units on page 26.

2.7 For Sale Developments
The equivalency figures presented in this Summary are based on an evaluation of the potential impact to value of requiring the various percentages of affordable housing in a given multifamily (rental) development versus an exclusively market rate development. The impact of requiring affordable housing as part of a for sale development is generally considered to be greater than the figures presented herein. Given current real estate market conditions, it is expected that the developer of a for sale project would likely opt to pay the fee rather than include affordable housing in such development. However, each development has unique economics.

Studio 1 2 3 Blended
Very Low 71,250 105,000 142,500 172,500 116,438
Low 60,800 89,600 121,600 147,200 99,360
Moderate 57,000 84,000 114,000 138,000 93,150
Gross Bedrooms
Leasable SF
Studio 1 2 3 Blended
Very Low $ 87 $ 90 $ 82 $ 78 $ 86
Low 91 96 89 84 92
Moderate 60 93 93 91 88
Value
Impact / SF
Bedrooms
339
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 9

3.0 Market Capacity
In this section the question of the market’s capacity to support an LVR fee is discussed. The City proposes to allow the development of residential use where such use is not currently permitted so long as such residential use either includes a component of affordable housing or an LVR fee is paid to support the development of affordable housing elsewhere.

The City is not considering requiring owners to develop residential uses on their property. Rather, the City is adding a right and value to certain areas of the City, with the condition that a portion of the incremental value conveyed be used to support affordable housing for residents of the City.

Every property and potential development is relatively unique. If adding residential use to a given property does not make economic sense, that property owner should not, and is not required to add such use. Regardless of the LVR fee ultimately levied, or amount of affordable housing required to be provided in a given development under the proposed policy, eligible properties and their owners would at worst be left at status quo. No existing property rights are proposed to be constrained or eliminated in any way. Property owners only have the potential to benefit from the LVR program, and the quantity of housing delivered within the City only has the potential to increase.

3.1 Incremental Value
As part of the Analysis, recent commercial and residential property transactions were reviewed.

In general, of the sales reviewed, most properties sold for between ~$700 - 1,500 per gross* square foot. Based on the data reviewed, values of $800 - 1,000 per gross square foot were considered indicative of typical market performance, and the higher end of this range could readily be ascribed to newer, quality product.

To evaluate the potential incremental value of the LVR program, the incremental value of newly permissible residential development (perhaps $800 to $1,000 per gross square foot, or more) can be compared to the cost of development. Construction costs can vary widely from project to project based on factors such as site prep required, construction type / materials, the quality of finishes, etc. Broadly, for the purposes of this analysis, a cost range of $400 to $600 per net square foot (excluding land) may be applicable, and this figure conceptually includes typical building permit fees, financing costs, and contractor overhead. It is possible to build many product types such as tract homes or basic additions for substantially less, and it can certainly cost substantially more to build high end or highly engineered product. *The conversion of gross to net square foot can vary substantially, but efficiency factors approaching 80% are common for larger buildings with interior corridors and indoor amenities, and higher ratios are possible for buildings with exterior corridors and without indoor amenities. 340
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 10
Given a potential value of $800 to $1,000 per gross square foot, and development costs of $400 to $600 per net square foot (excluding land), the net residual value or incremental value of adding residential use to a property could conceptually range from $400 to $600 per square foot of residential use, before accounting for net versus gross building area. The lower, or worst case from the assumptions above would yield $200 to $400 per square foot in new / incremental value before any potential adjustment for gross versus net square feet ($800 – $600 = $200, or $1,000 - $600 = $400).

For illustrative purposes only, should the City elect to levy an LVR fee of $100 per net square foot, the remaining incremental / residual value would be $100 to $300 per square foot of building area (given a building with a 100% gross to net efficiency). Assuming the owner of a small property was considering adding a single, 950 square foot two-bedroom unit above an existing commercial use, if the unit could be developed within a budget of $600 per square foot ($570,000), and the unit were valued at $900 per square foot ($855,000), the property owner would yield a net benefit of $190,000, after considering the LVR fee of $100 per square foot. This residual / new incremental value of $190,000 would be purely attributable to the City allowing residential uses in areas where such uses are not currently allowed. Thus, in this perhaps moderately conservative example, the City would retain $95,000 or 1/3rd of the value being conveyed (for the duration of the affordability covenants), and $190,000 or 2/3rds of the balance of the value being conveyed would be retained by the property owner (100% after the expiration of the affordability covenants).

Alternatively, a property owner could elect not to develop residential uses on their property and pursue the continuation of existing uses or other uses as currently permitted by right, without realizing any diminution in value.
341
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 11

4.0 Hypothetical Development Program
Pro Forma
In this section a series of high-level proforma are provided illustrating hypothetical development programs on a sample “small”, “medium”, and “large” site. For each hypothetical site, first a base case with all market rate units (wherein the LVR fee is paid) is evaluated, and subsequently hypothetical programs that include affordable housing are provided. Additionally, three hypothetical affordable housing pro forma were prepared for the medium and large site, and they evaluate the performance of a project with (i) very low-income units, (ii) moderate-income units, or (iii) a combination of very low- and moderate-income units as permitted under AB 1287.

The sites and programs presented are theoretical in nature, and prepared without the benefit of massing studies or order of magnitude construction cost estimates. They are intended to be for general demonstration purposes only. At the bottom of each pro forma, a “Return on Cost” figure is provided, and is one of many measures of potential profitability for a given project. In general, for projects of the scale evaluated herein, a Return on Cost of 8 – 12% or more would suggest a hypothetical development program may be financially feasible to a typical developer. Finally, the same pro forma for the medium and large sites are presented side-by-side in Appendix E:

Hypothetical Development Pro Forma on page 27 for easier comparison. 342
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 12
Figure 1: Hypothetical Small Site Pro Forma – Market Rate Project (LVR Fee Paid) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 3,250 SF
Existing Improvements 1,750 SF $ 900 /SF $ 1,575,000
Existing Parking 8 Stalls (Tandem)
Existing Value $ 1,575,000
Proposed Program
Description
Commercial 1,750 SF
Residential 1,650 SF
Parking 8 Stalls (Tandem)
Base Residential Units 2 DU
Affordable Units - DU
Density Bonus Units - DU
Total Units 2 DU (Two Bedroom Units)
Development Value
Commercial 1,750 SF $ 1,000 /SF $ 1,750,000
Market Rate Residential 1,650 SF 950 /SF 1,567,500
Affordable Residential - SF - /SF -
Total $ 3,317,500
Development Costs
Site Acquisition 1,750 SF $ 900 /SF $ 1,575,000
Commercial 1,750 SF 150 /SF 262,500
Residential 1,650 SF 600 /SF 990,000
Parking - SF - /SF -
LVR Fee 1,650 SF 76 /SF 125,400
Total $ 2,952,900
Net Margin 12.3% Return on Cost $ 364,600
Keep existing first floor commercial, add one
story of residential, no affordable units
Existing commercial / store front retail or office
use
Market Rate Project (LVR Fee Paid)
343
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 13
Figure 2: Hypothetical Medium Site Pro Forma – Market Rate Project (LVR Fee Paid) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 8,500 SF
Existing Improvements 5,000 SF $ 800 /SF $ 4,000,000
Existing Parking 15 Stalls
Existing Value $ 4,000,000
Proposed Program
Description
Commercial 5,000 SF
Residential 5,000 SF
Parking 15 Stalls
Base Residential Units 6 DU
Affordable Units - DU
Density Bonus Units - DU
Total Units 6 DU (One & Two Bedroom Units)
Development Value
Commercial 5,000 SF $ 900 /SF $ 4,500,000
Market Rate Residential 5,000 SF 950 /SF 4,750,000
Affordable Residential - SF - /SF -
Total $ 9,250,000
Development Costs
Site Acquisition 5,000 SF $ 800 /SF $ 4,000,000
Site Clearance - SF - /SF -
Commercial 5,000 SF 400 /SF 2,000,000
Residential 5,000 SF 500 /SF 2,500,000
Parking - SF - /SF -
LVR Fee 5,000 SF 104 /SF 520,000
Total $ 9,020,000
Net Margin 2.5% Return on Cost $ 230,000
Existing commercial / store front retail or office
use
Replace first floor commercial, add one story of
residential, no affordable units
Market Rate Project (LVR Fee Paid)
344
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 14
Figure 3: Hypothetical Medium Site Pro Forma – Project w/ Very Low-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 8,500 SF
Existing Improvements 5,000 SF $ 800 /SF $ 4,000,000
Existing Parking 15 Stalls
Existing Value $ 4,000,000
Proposed Program
Description
Commercial 5,000 SF
Residential 8,100 SF
Parking 15 Stalls
Base Residential Units 6 DU
Affordable Units 1 DU 17% Affordable
Density Bonus Units 3 DU
Total Units 9 DU (Two Bedroom Units)
Development Value
Commercial 5,000 SF $ 900 /SF $ 4,500,000
Market Rate Residential 7,200 SF 925 /SF 6,660,000
Affordable Residential 900 SF - /SF -
Total $ 11,160,000
Development Costs
Site Acquisition 5,000 SF $ 800 /SF $ 4,000,000
Site Clearance - SF - /SF -
Commercial 5,000 SF 400 /SF 2,000,000
Residential 8,100 SF 500 /SF 4,050,000
Parking 3,500 SF 125 /SF 437,500
LVR Fee 8,100 SF - /SF -
Total $ 10,487,500
Net Margin 6.4% Return on Cost $ 672,500
Project w/ Very Low-Income Unit(s)
Existing commercial / store front retail or office
use
Replace first floor commercial, add one or two
stories of residential, one very low unit
345
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 15
Figure 4: Hypothetical Medium Site Pro Forma – Project w/ Moderate-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 8,500 SF
Existing Improvements 5,000 SF $ 800 /SF $ 4,000,000
Existing Parking 15 Stalls
Existing Value $ 4,000,000
Proposed Program
Description
Commercial 5,000 SF
Residential 7,600 SF
Parking 15 Stalls
Base Residential Units 6 DU
Affordable Units 2 DU 33% Affordable
Density Bonus Units 2 DU
Total Units 8 DU (Two Bedroom Units)
Development Value
Commercial 5,000 SF $ 900 /SF $ 4,500,000
Market Rate Residential 5,700 SF 925 /SF 5,272,500
Affordable Residential 1,900 SF 425 /SF 807,500
Total $ 10,580,000
Development Costs
Site Acquisition 5,000 SF $ 800 /SF $ 4,000,000
Site Clearance - SF - /SF -
Commercial 5,000 SF 400 /SF 2,000,000
Residential 7,600 SF 500 /SF 3,800,000
Parking 3,500 SF 125 /SF 437,500
LVR Fee 7,600 SF - /SF -
Total $ 10,237,500
Net Margin 3.3% Return on Cost $ 342,500
Project w/ Moderate-Income Unit(s)
Existing commercial / store front retail or office
use
Replace first floor commercial, add one or two
stories of residential, two moderate units
346
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 16
Figure 5: Hypothetical Medium Site Pro Forma – Project w/ Very Low- & Moderate-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 8,500 SF
Existing Improvements 5,000 SF $ 800 /SF $ 4,000,000
Existing Parking 15 Stalls
Existing Value $ 4,000,000
Proposed Program
Description
Commercial 5,000 SF
Residential 9,900 SF
Parking 15 Stalls
Base Residential Units 6 DU
Affordable Units 2 DU 33%
Density Bonus Units 6 DU
Total Units 12 DU (One & Two Bedroom Units)
Development Value
Commercial 5,000 SF $ 875 /SF $ 4,375,000
Market Rate Residential 8,250 SF 950 /SF 7,837,500
Affordable Residential 1,650 SF 225 /SF 371,250
Total $ 12,583,750
Development Costs
Site Acquisition 5,000 SF $ 800 /SF $ 4,000,000
Site Clearance - SF - /SF -
Commercial 5,000 SF 400 /SF 2,000,000
Residential 9,900 SF 525 /SF 5,197,500
Parking 3,500 SF 125 /SF 437,500
LVR Fee 9,900 SF - /SF -
Total $ 11,635,000
Net Margin 8.2% Return on Cost $ 948,750
Project w/ Very Low- & Moderate-Income
Existing commercial / store front retail or office
use
Replace first floor commercial, add two stories
of residential, one very low, one moderate unit
347
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 17
Figure 6: Hypothetical Large Site Pro Forma – Market Rate Project (LVR Fee Paid) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 15,000 SF $ 250 /SF $ 3,750,000
Existing Improvements 5,000 SF
Existing Parking - Stalls
Existing Value $ 3,750,000
Proposed Program
Description
Commercial 3,500 SF
Residential 11,400 SF
Parking 30 Stalls
Base Residential Units 12 DU
Affordable Units - DU
Density Bonus Units - DU
Total Units 12 DU (Two Bedroom Units)
Development Value
Commercial 3,500 SF $ 900 /SF $ 3,150,000
Market Rate Residential 11,400 SF 925 /SF 10,545,000
Affordable Residential - SF - /SF -
Total $ 13,695,000
Development Costs
Site Acquisition 15,000 SF $ 250 /SF $ 3,750,000
Site Clearance 5,000 SF 50 /SF 250,000
Commercial 3,500 SF 400 /SF 1,400,000
Residential 11,400 SF 450 /SF 5,130,000
Parking 11,500 SF 100 /SF 1,150,000
LVR Fee 11,400 SF 104 /SF 1,185,600
Total $ 12,865,600
Net Margin 6.4% Return on Cost $ 829,400
Replace first floor commercial, add two stories
of residential, no affordable units
Market Rate Project (LVR Fee Paid)
Existing commercial / store front retail or office
use
348
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 18
Figure 7: Hypothetical Large Site Pro Forma – Project w/ Very Low-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 15,000 SF $ 250 /SF $ 3,750,000
Existing Improvements 5,000 SF
Existing Parking - Stalls
Existing Value $ 3,750,000
Proposed Program
Description
Commercial 3,500 SF
Residential 17,100 SF
Parking 30 Stalls
Base Residential Units 12 DU
Affordable Units 2 DU 17% Affordable
Density Bonus Units 6 DU
Total Units 18 DU (Two Bedroom Units)
Development Value
Commercial 3,500 SF $ 900 /SF $ 3,150,000
Market Rate Residential 15,200 SF 925 /SF 14,060,000
Affordable Residential 1,900 SF - /SF -
Total $ 17,210,000
Development Costs
Site Acquisition 15,000 SF $ 250 /SF $ 3,750,000
Site Clearance 5,000 SF 50 /SF 250,000
Commercial 3,500 SF 400 /SF 1,400,000
Residential 17,100 SF 450 /SF 7,695,000
Parking 11,500 SF 100 /SF 1,150,000
LVR Fee 17,100 SF - /SF -
Total $ 14,245,000
Net Margin 20.8% Return on Cost $ 2,965,000
Replace first floor commercial, add two or three
stories of residential, two very low units
Project w/ Very Low-Income Unit(s)
Existing commercial / store front retail or office
use
349
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 19
Figure 8: Hypothetical Large Site Pro Forma – Project w/ Moderate-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 15,000 SF $ 250 /SF $ 3,750,000
Existing Improvements 5,000 SF
Existing Parking - Stalls
Existing Value $ 3,750,000
Proposed Program
Description
Commercial 3,500 SF
Residential 14,250 SF
Parking 30 Stalls
Base Residential Units 12 DU
Affordable Units 3 DU 25% Affordable
Density Bonus Units 3 DU
Total Units 15 DU (Two Bedroom Units)
Development Value
Commercial 3,500 SF $ 900 /SF $ 3,150,000
Market Rate Residential 11,400 SF 925 /SF 10,545,000
Affordable Residential 2,850 SF 425 /SF 1,211,250
Total $ 14,906,250
Development Costs
Site Acquisition 15,000 SF $ 250 /SF $ 3,750,000
Site Clearance 5,000 SF 50 /SF 250,000
Commercial 3,500 SF 400 /SF 1,400,000
Residential 14,250 SF 450 /SF 6,412,500
Parking 11,500 SF 100 /SF 1,150,000
LVR Fee 14,250 SF - /SF -
Total $ 12,962,500
Net Margin 15.0% Return on Cost $ 1,943,750
Replace first floor commercial, add two stories
of residential, three moderate units
Project w/ Moderate-Income Unit(s)
Existing commercial / store front retail or office
use
350
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 20
Figure 9: Hypothetical Large Site Pro Forma – Project w/ Very Low- & Moderate-Income Unit(s) Source: Kosmont (2023)
Property Profile
Description of Improvements
Lot Area 15,000 SF $ 250 /SF $ 3,750,000
Existing Improvements 5,000 SF
Existing Parking - Stalls
Existing Value $ 3,750,000
Proposed Program
Description
Commercial 3,500 SF
Residential 19,800 SF
Parking 30 Stalls
Base Residential Units 12 DU
Affordable Units 4 DU 33% Affordable
Density Bonus Units 12 DU
Total Units 24 DU (One & Two Bedroom Units)
Development Value
Commercial 3,500 SF $ 875 /SF $ 3,062,500
Market Rate Residential 16,500 SF 950 /SF 15,675,000
Affordable Residential 3,300 SF 225 /SF 742,500
Total $ 19,480,000
Development Costs
Site Acquisition 15,000 SF $ 250 /SF $ 3,750,000
Site Clearance 5,000 SF 50 /SF 250,000
Commercial 3,500 SF 400 /SF 1,400,000
Residential 19,800 SF 450 /SF 8,910,000
Parking 11,500 SF 100 /SF 1,150,000
LVR Fee 19,800 SF - /SF -
Total $ 15,460,000
Net Margin 26.0% Return on Cost $ 4,020,000
Project w/ Very Low- & Moderate-Income
Existing commercial / store front retail or office
use
Replace first floor commercial, add three stories of
residential, two very low, two moderate units
351
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 21

5.0 Appendices
352
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 22
Appendix A: Calculation of Maximum Monthly Housing Expenditures / Rent 2023 Area Median Income $ 98,200
Income Thresholds
Very Low
Low
Moderate
Bedrooms Studio 1 2 3
Household Size 1 2 3 4
Household Size Adj. 70% 80% 90% 100%
Utility Allowance - 2023 Multifamily All Electric
Heating $ 14 $ 20 $ 25 $ 32
Cooking 7 10 13 16
Water Heating 14 19 25 31
Basic Electric 27 33 40 48
Water 73 82 91 109
Trash 42 42 42 42
Air Conditioning 10 15 20 25
Refrigerator 6 6 6 6
Total $ 193 $ 227 $ 262 $ 309
Allowed Monthly Housing Expenditures (Multifamily / For Rent) Bedrooms Studio 1 2 3
Very Low $ 666 $ 755 $ 843 $ 919
Low 838 951 1,064 1,164
Moderate 1,697 1,933 2,168 2,392
Percent of AMI
50%
60%
110%
Max Household Exp %
30%
30%
30%
353
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 23
Appendix B: Sample Rent & Unit Size Comparables
CoStar Properties (~July 2023)
Zillow & Rent.com Properties (~July 2023)
Address Bed Bath SF Rent $/SF Source
415 Herondo St - 1 360 $ 2,337 $ 6.49 Zillow
415 Herondo St - 1 408 2,331 5.71 Zillow
720 Monterey Blvd - 1 450 2,250 5.00 Zillow
415 Herondo St - 1 512 2,523 4.93 Zillow
415 Herondo St - 1 562 2,563 4.56 Zillow
Average 458 $ 2,401 $ 5.34
Median 450 2,337 5.00
Address Bed Bath SF Rent $/SF Source
1140 Hermosa Ave 1 1 400 $ 2,350 $ 5.88 Zillow
1346 Bayview Dr 1 1 400 2,500 6.25 Zillow
1821 Pacific Coast Hwy 1 1 550 2,495 4.54 Rent.com
707 Manhattan Ave 1 1 408 2,830 6.94 Zillow
2001 Pacific Coast Hwy 1 1 500 2,295 4.59 Zillow
2001 Pacific Coast Hwy 1 1 500 2,395 4.79 Zillow
2001 Pacific Coast Hwy 1 1 500 2,495 4.99 Zillow
2026 Hermosa Ave 1 1 500 2,850 5.70 Zillow
718 21st St 1 1 550 2,500 4.55 Zillow
454 Longfellow Ave 1 1 590 2,800 4.75 Zillow
2100 Hermosa Ave 1 1 600 3,550 5.92 Zillow
216 Hermosa Ave 1 1 630 3,200 5.08 Zillow
415 Herondo St 1 1 644 3,004 4.66 Zillow
137 27th St 1 1 650 3,500 5.38 Zillow
225 30th PL 1 1 750 3,300 4.40 Zillow
415 Herondo St 2 1 758 3,585 4.73 Zillow
415 Herondo St 2 1 855 3,047 3.56 Zillow
3101 Manhattan Ave 1 1 858 3,100 3.61 Zillow
Average 591 $ 2,878 $ 5.02
Median 570 2,840 4.77
One Bedroom Units
Studio Units
354
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 24
Address Bed Bath SF Rent $/SF Source
721 Manhattan Ave 1 2 560 $ 3,200 $ 5.71 Zillow
1154 Cypress Ave 1 2 690 3,600 5.22 Zillow
2011 Manhattan Ave 1 2 700 2,595 3.71 Zillow
2100 Hermosa Ave 1 2 700 3,800 5.43 Zillow
415 Herondo St 1 2 717 3,450 4.81 Zillow
950 1st St 1 2 759 2,875 3.79 Zillow
1821 Pacific Coast Hwy 2 2 900 3,125 3.47 Rent.com
404 Hermosa Ave 1 2 779 4,495 5.77 Zillow
2411 Prospect 2 2 855 3,395 3.97 Zillow
10 Meyer Ct 1 2 900 3,200 3.56 Zillow
1707 E Pacific Coast Hwy 2 2 974 3,598 3.69 Zillow
75 18th St 2 2 832 4,300 5.17 Rent.com
77 15th St 2 2 981 4,500 4.59 Zillow
1836 The Strand 2 2 1,000 5,995 6.00 Zillow
1652 Monterey Blvd 2 2 1,050 4,800 4.57 Zillow
1656 Monterey Blvd 2 2 1,050 4,800 4.57 Zillow
101 Monterey Blvd 2 2 1,074 3,300 3.07 Zillow
676 5th St 2 2 1,100 3,850 3.50 Zillow
1442 Bayview Dr 2 2 1,200 4,500 3.75 Zillow
1636 Palm Drive 2 2 1,200 5,995 5.00 Zillow
20 22nd St 2 2 1,276 6,000 4.70 Zillow
47 8th St 3 2 1,288 6,000 4.66 Zillow
408 Ocean View Ave 3 2 1,296 6,500 5.02 Zillow
743 24th PL 2 2 1,500 4,900 3.27 Zillow
Average 974 $ 4,282 $ 4.46
Median 978 4,075 4.58
Address Bed Bath SF Rent $/SF Source
639 1st St 3 3 1,200 $ 4,800 $ 4.00 Zillow
428 The Strand 2 3 1,846 9,500 5.15 Zillow
Average 1,523 $ 7,150 $ 4.57
Median 1,523 7,150 4.57
Two Bedroom Units
Three Bedroom Units
355
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 25
Appendix C: Estimated Value Impact Per Square Foot for Different Unit Counts *Dwelling unit counts are prior to use of density bonus provisions Units* Very Low Low Moderate
5 $ 107 $ 112 $ 121
6 95 98 106
7 156 143 94
8 143 131 85
9 123 121 106
10 115 112 98
11 101 105 91
12 95 98 85
13 86 93 99
14 123 118 94
15 112 112 89
16 107 107 85
17 99 103 96
18 95 98 92
19 89 94 92
20 86 91 88
30 95 98 91
40 86 93 88
50 92 97 90
60 86 92 88
70 90 95 90
80 86 93 88
90 89 94 89
100 86 92 88
356
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 26
Appendix D: Estimated Value Impact Per Square Foot for One to Four Units Studio 1 2 3 Blended
Very Low $ 869 $ 896 $ 818 $ 777 $ 859
Low 773 822 756 720 786
Moderate 290 447 446 436 423
Very Low $ 435 $ 448 $ 409 $ 389 $ 430
Low 386 411 378 360 393
Moderate 145 224 223 218 211
Very Low $ 290 $ 299 $ 273 $ 259 $ 286
Low 258 274 252 240 262
Moderate 97 149 149 145 141
Very Low $ 217 $ 224 $ 205 $ 194 $ 215
Low 193 205 189 180 197
Moderate 73 112 112 109 106
One Unit w/ One Affordable Unit (100% Affordable)
Two Units w/ One Affordable Unit (50% Affordable)
Three Units w/ One Affordable Unit (33% Affordable)
Four Units w/ One Affordable Unit (25% Affordable)
Value
Impact / SF
Bedrooms
357
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 27
Appendix E: Hypothetical Development Pro Forma
358
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 28
Hypothetical Medium Site Pro Forma
Property Profile
Description of Improvements
Lot Area 8,500 SF 8,500 SF 8,500 SF 8,500 SF
Existing Improvements 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ Existing Parking 15 Stalls 15 Stalls 15 Stalls 15 Stalls Existing Value 4,000,000 $ 4,000,000 $ 4,000,000 $ 4,000,000 $ Proposed Program
Description
Commercial 5,000 SF 5,000 SF 5,000 SF 5,000 SF
Residential 5,000 SF 8,100 SF 7,600 SF 9,900 SF
Parking 15 Stalls 15 Stalls 15 Stalls 15 Stalls
Base Residential Units 6 DU 6 DU 6 DU 6 DU
Affordable Units - DU 1 DU 17% Affordable 2 DU 33% Affordable 2 DU 33% Density Bonus Units - DU 3 DU 2 DU 6 DU
Total Units 6 DU (One & Two Bedroom Units) 9 DU (Two Bedroom Units) 8 DU (Two Bedroom Units) 12 DU (One & Two Bedroom Units) Development Value
Commercial 5,000 SF 900 $ /SF 4,500,000 $ 5,000 SF 900 $ /SF 4,500,000 $ 5,000 SF 900 $ /SF 4,500,000 $ 5,000 SF 875 $ /SF 4,375,000 $ Market Rate Residential 5,000 SF 950 /SF 4,750,000 7,200 SF 925 /SF 6,660,000 5,700 SF 925 /SF 5,272,500 8,250 SF 950 /SF 7,837,500 Affordable Residential - SF - /SF - 900 SF - /SF - 1,900 SF 425 /SF 807,500 1,650 SF 225 /SF 371,250 Total 9,250,000 $ 11,160,000 $ 10,580,000 $ 12,583,750 $ Development Costs
Site Acquisition 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ 5,000 SF 800 $ /SF 4,000,000 $ Site Clearance - SF - /SF - - SF - /SF - - SF - /SF - - SF - /SF - Commercial 5,000 SF 400 /SF 2,000,000 5,000 SF 400 /SF 2,000,000 5,000 SF 400 /SF 2,000,000 5,000 SF 400 /SF 2,000,000 Residential 5,000 SF 500 /SF 2,500,000 8,100 SF 500 /SF 4,050,000 7,600 SF 500 /SF 3,800,000 9,900 SF 525 /SF 5,197,500 Parking - SF - /SF - 3,500 SF 125 /SF 437,500 3,500 SF 125 /SF 437,500 3,500 SF 125 /SF 437,500 LVR Fee 5,000 SF 104 /SF 520,000 8,100 SF - /SF - 7,600 SF - /SF - 9,900 SF - /SF - Total 9,020,000 $ 10,487,500 $ 10,237,500 $ 11,635,000 $ Net Margin 2.5% Return on Cost 230,000 $ 6.4% Return on Cost 672,500 $ 3.3% Return on Cost 342,500 $ 8.2% Return on Cost 948,750 $ Project w/ Very Low- & Moderate-Income
Existing commercial / store front retail or office
use
Replace first floor commercial, add two stories
of residential, one very low, one moderate unit
Project w/ Moderate-Income Unit(s)
Existing commercial / store front retail or office
use
Replace first floor commercial, add one or two
stories of residential, two moderate units
Existing commercial / store front retail or office
use
Replace first floor commercial, add one story of
residential, no affordable units
Market Rate Project (LVR Fee Paid) Project w/ Very Low-Income Unit(s) Existing commercial / store front retail or office
use
Replace first floor commercial, add one or two
stories of residential, one very low unit
359
HERMOSA BEACH LAND VALUE RECAPTURE ANALYSIS 29
Hypothetical Large Site Pro Forma
Property Profile
Description of Improvements
Lot Area 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ Existing Improvements 5,000 SF 5,000 SF 5,000 SF 5,000 SF Existing Parking - Stalls - Stalls - Stalls - Stalls
Existing Value 3,750,000 $ 3,750,000 $ 3,750,000 $ 3,750,000 $ Proposed Program
Description
Commercial 3,500 SF 3,500 SF 3,500 SF 3,500 SF
Residential 11,400 SF 17,100 SF 14,250 SF 19,800 SF
Parking 30 Stalls 30 Stalls 30 Stalls 30 Stalls
Base Residential Units 12 DU 12 DU 12 DU 12 DU
Affordable Units - DU 2 DU 17% Affordable 3 DU 25% Affordable 4 DU 33% Affordable Density Bonus Units - DU 6 DU 3 DU 12 DU
Total Units 12 DU (Two Bedroom Units) 18 DU (Two Bedroom Units) 15 DU (Two Bedroom Units) 24 DU (One & Two Bedroom Units) Development Value
Commercial 3,500 SF 900 $ /SF 3,150,000 $ 3,500 SF 900 $ /SF 3,150,000 $ 3,500 SF 900 $ /SF 3,150,000 $ 3,500 SF 875 $ /SF 3,062,500 $ Market Rate Residential 11,400 SF 925 /SF 10,545,000 15,200 SF 925 /SF 14,060,000 11,400 SF 925 /SF 10,545,000 16,500 SF 950 /SF 15,675,000 Affordable Residential - SF - /SF - 1,900 SF - /SF - 2,850 SF 425 /SF 1,211,250 3,300 SF 225 /SF 742,500 Total 13,695,000 $ 17,210,000 $ 14,906,250 $ 19,480,000 $ Development Costs
Site Acquisition 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ 15,000 SF 250 $ /SF 3,750,000 $ Site Clearance 5,000 SF 50 /SF 250,000 5,000 SF 50 /SF 250,000 5,000 SF 50 /SF 250,000 5,000 SF 50 /SF 250,000 Commercial 3,500 SF 400 /SF 1,400,000 3,500 SF 400 /SF 1,400,000 3,500 SF 400 /SF 1,400,000 3,500 SF 400 /SF 1,400,000 Residential 11,400 SF 450 /SF 5,130,000 17,100 SF 450 /SF 7,695,000 14,250 SF 450 /SF 6,412,500 19,800 SF 450 /SF 8,910,000 Parking 11,500 SF 100 /SF 1,150,000 11,500 SF 100 /SF 1,150,000 11,500 SF 100 /SF 1,150,000 11,500 SF 100 /SF 1,150,000 LVR Fee 11,400 SF 104 /SF 1,185,600 17,100 SF - /SF - 14,250 SF - /SF - 19,800 SF - /SF - Total 12,865,600 $ 14,245,000 $ 12,962,500 $ 15,460,000 $ Net Margin 6.4% Return on Cost 829,400 $ 20.8% Return on Cost 2,965,000 $ 15.0% Return on Cost 1,943,750 $ 26.0% Return on Cost 4,020,000 $ Project w/ Very Low- & Moderate-Income
Existing commercial / store front retail or office
use
Replace first floor commercial, add three stories of
residential, two very low, two moderate units
Replace first floor commercial, add two stories
of residential, no affordable units
Replace first floor commercial, add two or three
stories of residential, two very low units
Replace first floor commercial, add two stories
of residential, three moderate units
Project w/ Very Low-Income Unit(s)
Existing commercial / store front retail or office
use
Project w/ Moderate-Income Unit(s)
Existing commercial / store front retail or office
use
Market Rate Project (LVR Fee Paid)
Existing commercial / store front retail or office
use
360
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0726
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023
2023-24 RESIDENTIAL PARKING PERMIT PROGRAM REVIEW
(Finance Director Viki Copeland)
Recommended Action:

Staff recommends City Council:

1. Receive a staff presentation regarding the 2023-24 Residential Parking Permit program;

2. Consider adoption of a resolution that encompasses all areas of the Residential Parking Permit program to ensure clarity of program terms that supersedes all previous resolutions regarding the Residential Parking Permit program (Attachment 1); and

3. Provide direction on any desired modifications.

Executive Summary:

As directed by City Council at its February 28, 2023 meeting, staff presents this item to facilitate a review of the 2023-24 Residential Parking Permit program and to consider any additional modifications.

Background:

In 1984, the City of Hermosa Beach applied for, and was granted, permission by the California Coastal Commission to establish a preferential parking permit program in conjunction with remote beach parking locations and a park and ride shuttle system. The permit was most recently amended in 2004.

The preferential parking permit program was developed to discourage oversaturation of the City’s downtown and coastal parking, to provide free long-term parking at remote locations, and to allow residents within the impacted area to park beyond the one-hour time restrictions or without having to pay the meter at yellow pole/cap meters. The impacted area is bound by the North and South City boundaries; by the Strand on the west; and by Loma Drive, Park Avenue, or Morningside Drive on the east. Parking spaces on the west side of Cypress Avenue between 11th Street and Pier Avenue are also included.

In 2019, the City Council adopted a Parking Management Study (Attachment 2) that included recommendations to adjust the parking permits and pricing. In accordance with the approved study, City of Hermosa Beach Page 1 of 9 Printed on 12/7/2023
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recommendations to adjust the parking permits and pricing. In accordance with the approved study, City Council voted at its February 28, 2023 meeting to limit the number of residential parking permits available to three per residence and to increase the annual price for those permits from $40 to $50.

Additional operational changes to the program were also made as follows:
· City Council previously approved requirement of California vehicle registration at the Hermosa Beach address for all permits with few exceptions on January 31, 2022. · Residential parking permits were limited to three per year per residence, to vehicles registered to the residence. Proof of residence and valid California vehicle registration at that address are required. One of the residential parking permits may be in the form of a hang tag with the rest in sticker form only. A single extra permit, in excess of the maximum three Residential parking permits per residence, may be issued by the City Manager or designee, upon a showing that there exists a number of registered vehicles to different and unique drivers at a specific property, which does not have adequate onsite parking to accommodate the number of vehicles in excess of the three Residential parking permits allowed. The burden of proof shall be upon the applicant, and the City Manager shall develop adequate application standards to the satisfaction of the City Manager. The City Manager or designee decision shall be final. · In the event of resident turnover at a specific residence, a signed lease by the owner of record of the property shall be required to issue new passes to new and different drivers than the previous tenants. The previously issued Residential parking permits shall be cancelled upon showing of the new residents at any specific residence. · The former property owner guest permit was eliminated in a separate motion.

At its October 10, 2023 meeting, City Council approved the issuance of a single “guest” parking permit without the requirement of vehicle registration or vehicle ownership. The first person to apply for the “guest” permit per address receives it and the City does not make any value judgments or weigh competing applications between roommates or anything similar. Further, once the single “guest” pass is issued for the residence, the City does not issue another one for that year irrespective of resident turnover. The coordination of guest passes amongst new and former tenants and new and former owner residents is the users’ responsibility.

Past Council Actions
Meeting Date Description
June 6, 2018 The City Council held a Budget Workshop, with a Five-Year Financial Forecast, including recommendations for increased citation fees. At that time, the City Council requested a survey for all parking violations
December 17, 2019 The City Council accepted the Coastal Zone Parking Assessment Study recommendations; directed staff to return to Council and the applicable City Commissions with the related implementation actions for each of the near-term City of Hermosa Beach Page 2 of 9 Printed on 12/7/2023
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Meeting Date Description
June 6, 2018 The City Council held a Budget Workshop, with a Five-Year Financial Forecast, including recommendations for increased citation fees. At that time, the City Council requested a survey for all parking violations
December 17, 2019 The City Council accepted the Coastal Zone Parking Assessment Study recommendations; directed staff to return to Council and the applicable City Commissions with the related implementation actions for each of the near-term recommendations; and directed staff to incorporate the policy recommendations into the Draft Local Coastal Program and, if appropriate, draft an amendment to the City’s Coastal
Development Permit for the Preferential Parking Program and Remote Beach Park and Ride System.

September 28, 2021 The City Council requested that City Parking Programs and Parking Management be discussed at a future meeting.

January 31, 2022 The City Council reviewed and discussed the status and priorities of the 12 recommendations in the Parking
Management Study and challenges of coordinating these
efforts with goal of Plan Hermosa and the City’s efforts to certify a Local Coastal Program with the Coastal Commission.

Council directed staff to move forward with the sale of the 2022-2023 residential and employee parking permits; place an item on a future agenda to enable Council to consider a fee increase; and restrict the sale of permits to out-of-state vehicles except for active military.

November 3, 2022 The City Council awarded a contract for mobile parking payment systems (Pay-By-App) to ParkMobile, LLC and
directed staff to explore opportunities to utilize the system to provide real-time parking availability information to the public.

February 28, 2023 The City Council approved changes to the City’s residential parking permit program, employee permit program, and
hourly parking meter and parking lot rates.

March 14, 2023 The City Council gave City Manager or designee the discretion to waive the vehicle registration requirement, upon showing good cause, amending the previously adopted
resolution.

September 12, 2023 Motion by Councilmember Detoy, seconded by Councilmember Francois for staff to return with information on requirements for transferable residential “guest” parking permits for review and discussion.

September 26, 2023 After receiving the information item, City Council directed staff to return to its meeting on October 10, 2023 with a narrowly focused item to consider a “guest” parking pass program.

October 10, 2023 City Council approved a single “guest” permit for each residential address in the impacted area with no vehicle registration or vehicle requirement.

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showing good cause, amending the previously adopted
resolution.

September 12, 2023 Motion by Councilmember Detoy, seconded by Councilmember Francois for staff to return with information on requirements for transferable residential “guest” parking permits for review and discussion.

September 26, 2023 After receiving the information item, City Council directed staff to return to its meeting on October 10, 2023 with a narrowly focused item to consider a “guest” parking pass program.

October 10, 2023 City Council approved a single “guest” permit for each residential address in the impacted area with no vehicle registration or vehicle requirement.

Discussion:

Staff presents this item to provide information and statistics for City Council review of changes made to the 2023-24 Residential Parking Permit program. These changes included vehicle registration requirement for guest/transferable permits, a limit to the number of permits per residence, and the first increase in permit pricing since 2008.

Residential parking permits expire on February 28th or 29th of each year, with sale and renewal of the permits beginning February 1 for the following year. Permit renewals for 2023-24 were postponed until August 28, 2023 due to modifications required in the permitting software to implement the program changes.

Parking Permit Comparisons
Residential Permit Year-to-Date Comparison
The table below, Residential Permit Year-to-Date Comparison, shows permit totals from the 2022-23 renewal period to 2023-24 (as of November 30, 2023). Tables illustrating monthly sales for each of the two years are also provided.

Since the 2023-24 renewal period, which began on August 28, 2023, did not include the sales increase that normally occurs in May and June as a result of the enforcement of the one-hour zone that runs from May 15 to September 15 each year, 778 permits were added to the 2023-2024 sales numbers based on previous sales in those months last year. After adjusting the numbers as described, the result is an estimated 39 percent decrease in residential permit sales, which is consistent with City Council’s goals to make existing spaces more readily available to everyone and to manage the City’s limited parking spaces equitably and efficiently.

Residential Permit Year-to-Date Comparison
Residential Permits 2023-24 Total 2022-23 Total
Vehicle Sticker 2370 56% 4327 53%
Transferable Permit 1886 44% 3203 39%
Owner Guest Permit 0 0% 654 8%
Total Permits Sold5034 100% 8184 100%
FY Difference -38%
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Residential Permit Year-to-Date Comparison
Residential Permits 2023-24 Total 2022-23 Total
Vehicle Sticker 2370 56% 4327 53%
Transferable Permit 1886 44% 3203 39%
Owner Guest Permit 0 0% 654 8%
Total Permits Sold5034 100% 8184 100%
FY Difference -38%
2023-2024 Residential Permits
Sold
2022-2023 Residential Permits Sold
August 272 February 3116
September 1456 March 3954
October 1901 April 336
November 627 May 426
2022-23 May and
June Sales
778 June 352 (Total February to June
8184)
Total 5034 July 190
August 156
September 150
October 90
November 83
December 46
January 27
Permits Sold 8926
Annual Residential Employee Permit (yellow posted meters) The Annual Employee Permit is for the residential parking permit area. The price of the permit increased from $143 to $175.

Annual Employee Permit Year-to-Date
Comparison
2023-24 2022-23
135 148
FY Difference -9%
Other Permits
The permits listed below are issued on a fiscal year cycle. The comparison is from August 28th th
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through November 30th.

The price of the Contractor Permit increased from $34 to $42 and the Daily Permit increased from $5 to $6.

Other Permits Comparison
Permit Type Aug-Nov 2023Aug-Nov
2022
Contractor 206 249
Daily 154 60
The price of the Daily Lot Permit increased from $31 to $38 and the 24-Hour Lot Permit increased from $62 to $75.

Monthly Lot Permit Comparison
Permit Type Aug-Nov
2023
Aug-Nov
2022
Daily Lot 549 494
24-Hour 439 589
Employee Lot Permits
Employees are not purchasing the Monthly Lot Employee Permits (only two have been sold), presumably because the Daily Lot Permit and 24-Hour Lot Permit may be purchased without proving employment verification for the same price and with less restrictive parking. City Council may wish to consider further changes to this program.

Driveway Permits
Driveway permits, which allow vehicles to park in front of a driveway if the vehicle does not extend beyond the width of the driveway at any point, cost $170 and are valid as long as the holder owns or leases the property. The price of the permit was adjusted in the user fee study in 2016 from $44 to $170. It will be revisited in the user fee study later this year.

Communications
Many communications were received by email, in person, and on Zoom at Council meetings. Most of the communications asked for the reinstitution of the former “guest” permit program. That is, to return to no vehicle registration requirement to the address or even a need to own a vehicle to be eligible for a “guest” permit. City Council resolved the issues on October 10, 2023 by removing the registration requirement and vehicle ownership requirement to the satisfaction of many residents.

Cancellation of the property owner’s guest permit generated many complaints from property owners and prompted some concerns about owners attempts to obtain a permit. This will be discussed under City of Hermosa Beach Page 6 of 9 Printed on 12/7/2023
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and prompted some concerns about owners attempts to obtain a permit. This will be discussed under “Issues Identified During Issuance.”
Clarification
As we near conclusion of the 2023-24 permit program, staff seeks clarification on the following items:

Replacement of Guest Permits
Under the current parking rule, a permit may be replaced if a resident can provide proof that the permit has been destroyed or stolen. At its October 10th meeting, City Council approved a resolution stating the “City shall only issue a single ‘guest’ parking pass per parking pass cycle. The first applicant that satisfies the application criteria shall be issued the ‘guest’ parking pass.” Staff requests City Council confirm that no guest passes should be replaced, even if stolen. In the past, there were residents who filed more than one Police report in a permit cycle for a stolen guest permit.

Issues Identified During Issuance of the 2023-2024 Residential Parking Permits Issue Description
Owners of multiple
properties claiming to live at
more than one address
Owners of multiple properties or multi-unit homes in the impacted area have provided a current utility bill to
request additional guest/parking permits for each address or unit they own. Some owners have claimed to live at
multiple addresses. If the owner includes the utilities with the rent or lease, the utilities are in the owner’s name.

Possible Solution: Stop accepting utility bills for proof of residency and indicate in the resolution that residents cannot obtain parking permits for multiple addresses.

Vehicle registration required
at the Hermosa Beach
address
Staff received several exception requests from residents for vehicles not registered to the Hermosa Beach
address, asking not to be required to change the
registration address. The circumstances for not wanting the address on the registration included restraining
orders, confidential address program for people who
testified in court, judges, and attorneys.

Altered documents -
Registration and Proof of
residency
Residents have submitted altered vehicle registration to show the Hermosa Beach address. Staff also received
altered proof of residency documents. Requests were
denied. Possible Solution: Implement a penalty such
as preventing the resident from obtaining future parking permits for some period.

Misuse of parking
permits/fraud
Some residents have purchased residential parking
permits for their CA vehicles and placed them on out-ofstate vehicles. Possible Solution: Implement a penalty such as preventing the resident from obtaining future
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Altered documents -
Registration and Proof of
residency
Residents have submitted altered vehicle registration to show the Hermosa Beach address. Staff also received
altered proof of residency documents. Requests were
denied. Possible Solution: Implement a penalty such
as preventing the resident from obtaining future parking permits for some period.

Misuse of parking
permits/fraud
Some residents have purchased residential parking
permits for their CA vehicles and placed them on out-ofstate vehicles. Possible Solution: Implement a penalty such as preventing the resident from obtaining future
parking permits for some period.

Acceptable term for lease
agreements
Leases with a term of two months have been submitted. A six- month minimum has been used but it is
recommended that City Council determine the
appropriate lease term acceptable. Possible Solution:

One year lease term
No limit on annual employee
permits
The 1982 resolution does not limit the number of permits an employee can obtain. Some employees have multiple
vehicles and want a permit for each vehicle. Possible
Solution: Limit the annual employee permit to one per
employee.

Residential permits for
business owners
The 1982 resolution allows the owner of a business in the impacted area to get one residential parking permit. Very few are sold but staff wanted to make sure City Council was aware of this option.
2019 Parking Study Recommendations
The City Council adopted Parking Management Study (Attachment 2), provided as part of the Coastal Plan Management Study, included a recommendation to consider tiered pricing and creation of parking zones for permits. The City’s permit software provider indicates that a change to tiered pricing would require three to four months for implementation. However, should Council wish to proceed with consideration of creation of zones for residential permits, Council could consider adjusting the parking pass sales timeframe to align with the fiscal year or later. Staff was not able to locate the historical context as to why parking pass sales begin in February.

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:

Mobility Element
Goal 4. A parking system that meets the parking needs and demand of residents, visitors, and employees in an efficient and cost-effective manner.

Policies:
· 4.4 Preferential parking program. Periodically study and evaluate the current City of Hermosa Beach Page 8 of 9 Printed on 12/7/2023
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· 4.4 Preferential parking program. Periodically study and evaluate the current inventory of public parking supply and update the preferential parking program. · 4.10 Visitor parking information. Manage information about passes and accessing public parking lots to facilitate use by longer-distance visitors with limited transportation choices.

Fiscal Impact:

There is no fiscal impact related to the recommended action.

Attachments:

1. Resolution No. 23-XXXX

2. Hermosa Beach Parking Management Study

3. Link to June 6, 2018 City Council Budget Workshop

4. Link to December 17, 2019 City Council Staff Report

5. Link to September 28, 2021 City Council Staff Report

6. Link to January 31, 2022 City Council Staff Report

7. Link to September 3, 2022 City Council Staff Report

8. Link to February 28, 2023 City Council Staff Report

9. Link to March 14, 2023 City Council Staff Report

10.Link to September 12, 2023 City Council Staff Report

11.Link to September 26, 2023 City Council Staff Report Respectfully Submitted by: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
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CITY OF HERMOSA BEACH
RESOLUTION NO. 23-XXXX

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

CALIFORNIA ESTABLISHING AND RESTATING THE PROVISIONS OF THE CITY’S RESIDENTIAL PARKING PERMIT PROGRAM AND RELATED

REGULATIONS INTO A SINGLE RESOLUTION REPEALING AND
SUPERSEDING ALL PREVIOUS RESOLUTIONS RELATED TO THE CITY’S

RESIDENTIAL PARKING PERMIT PROGRAM AND RELATED REGULATIONS

AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA

ENVIRONMENTAL QUALITY ACT
WHEREAS, the City of Hermosa Beach has established and maintained a preferential residential parking permit program on certain streets in the City pursuant to California Vehicle Code § 22507 for decades; and WHEREAS, the City’s Residential Parking Permit Program and related regulations are codified in numerous resolutions dating back to the early 1980s, which requires review and compilation to get the complete regulatory environment; and
WHEREAS, more recently, the City Council approved the 2019 Coastal Zone Parking Management Study which included recommendations to improve parking management strategies for the City; and
WHEREAS, more recently, the City Council approved the 2019 Coastal Zone Parking Management Study (“Study”) which included recommendations to improve parking management strategies for the City; and WHEREAS, the Study noted that more residential parking permits are issued for those in the impacted coastal parking area than total number of available spaces in that same area; and
WHEREAS, at its February 28, 2023 meeting, the City Council made revisions to its residential parking permit program that limited the number of residential passes per residence and instituted other vehicle registration requirements for pass issuance; and
370

WHEREAS, at its October 10, 2023 meeting the City Council adopted a resolution that authorized the issuance of a single “guest” parking permit for each residential address in the impacted coastal parking area provided the residential address did not exceed the numeric cap of residential parking permits authorized under the City’s Residential Parking Permit Program; and WHEREAS, the City Council desires to place all provisions and regulations of the City’s Residential Parking Permit Program and related regulations into a single resolution for ease of reference and clarity with the public and to repeal and supersede all previous resolutions related to the City’s Residential Parking Permit Program and related regulations.

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

SECTION 1. Pursuant to California Vehicle Code § 22507, the City of Hermosa Beach establishes a preferential parking privileges on certain streets in the City. This Resolution repeals and supersedes all previous resolutions related to the City’s Residential Parking Permit Program and related regulations.

SECTION 2. Use “The City Council finds and determines as follows:
(a) Parking on residential streets west of Loma Drive is subject to heavy use and demand from non-resident recreational commuters;
(b) The area west of Loma Drive and the west side of Cypress Avenue between 11th Street and Pier Avenue already provides only marginally adequate on-street parking for residents;
(c) There exists a City-wide impact on residential parking from recreational commuters and other visitors which has not yet been specifically identified; (d) Based on the City's experience and that of other coastal cities, it is reasonable to anticipate that the establishment of the Impacted Parking Area proposed in this resolution will have the effect of causing increased recreational commuter parking in areas east of Loma Drive;
371

(e) The large number of recreational commuters and other visitors have a detrimental effect on the health, safety and general welfare of the City by:
1) Increasing non-resident traffic volume and parking demands; 2) Creating unreasonable burdens on residents in gaining access to their dwelling
3) Exacerbating noise and air pollution and creating new trash and litter problems;
4) Causing greater risk of traffic accidents;
5) Increasing risk of criminal activity;
6) Creating a risk of depressing property values;
7) Threatening to overwhelm the City’s capacity to maintain and protect the residential character of its neighborhoods; 8) The City’s Residential Parking Permit Program in the Impacted Area are designed to alleviate the problems cited here which arise from increasing demands of parking in residential neighborhood. 9) This resolution is consistent with the terms of California Coastal Commission Permit No. 5-82-251, as amended.

SECTION 3. The following boundaries shall constitute the “Impacted Area” where the City’s Residential Parking Permit Program shall apply:

The impacted area is bound by the North and South City boundaries; by the Strand on the west; and by Loma Drive, Park Avenue, or Morningside Drive on the east. Parking spaces on the West side of Cypress Avenue between 11th Street and Pier Avenue are also included.

SECTION 4. The City’s Residential Parking Permit Program is hereby established in the Impacted Area subject to the following:
(a) Residential Parking Permits are limited to three per year per residence (only one of which may be a hang tag permit, the rest shall be windshield stickers), to vehicles registered to the residence, Proof of residence and valid vehicle registration at that address shall be required. A single extra permit in excess of the maximum 3 Residential parking Permits per residence may be issued by the City Manager or designee, in the sole discretion of the City Manager or designee, upon a showing that there exists a number of registered vehicles to different and unique drivers at a specific property which does not have adequate on-site parking to accommodate the number of vehicles in excess of the 3 Residential 372

Parking Permits allowed. The burden of proof shall be upon the applicant and the City Manager shall develop adequate application standard to the satisfaction of the City Manager. The City Manager may waive the vehicle registration requirement in this Resolution upon a showing of good cause. The City Manager or designee’s decision shall be final.

In the event of resident turnover at a specific residence, a signed lease by the owner of record of the property shall be required to issue new passes to new and different drivers than the previous tenants. The previously issued Residential Parking Permits shall be cancelled upon a showing of new resident at any specific residence.
(b)Guest Parking Permits. Each residential address in the impacted coastal parking area shall be eligible for a single “Guest” Parking Permit provided this residential address does not exceed the cap of residential parking permits authorized under the City’s Residential Parking Permit Program. An applicant shall submit information as required by the City, demonstrating to the satisfaction of the City that the applicant resides at an address in the Impacted Area. No vehicle registration of any kind will be required for this “Guest” Parking Permit.

The City shall only issue a single “Guest” Parking Permit per parking permit cycle. The first applicant that satisfies the application criteria shall be issued the “Guest” Parking Permit. In no event will any residential address be issued more than one transferable hang tag parking permit.
(c) Commercial Enterprises. The City Manager or designee may issue an affixed Residential Parking Permit to bona fide employees of the businesses within the Impacted Area and each owner of a business in the Impacted Area may be issued one affixed Residential Parking Permit subject to the discretion of the City Manager or designee.

SECTION 5. Residential Parking Permits and Guest Parking Permits shall be valid from the first day of March to the 28th day of February each year unless the terms are extended or modified by the City Manager.

SECTION 6. Pursuant to the provisions of this resolution, meter posts painted or maintained with yellow color code and residential parking spaces posted onehour parking will allow resident permit parking daily, except that these permits are invalid during the hours posted for street sweeping operations, not to exceed 72 hours at one location, or a day permit which allows all-day parking and is valid 373

only on the day of use, except during the hours posted for street sweeping operations.

SECTION 7. It is hereby designated that in those metered areas where the City Engineer has caused the parking meter post adjacent to each parking space to be painted yellow and in those areas posted one-hour parking between Beach Drive on the West, Loma/Morningside on the East, and the City boundaries on the North and South, exclusive of any commercially zoned frontage, a vehicle may occupy said restricted parking space providing said vehicle has affixed thereon in the lower right hand corner of the windshield of the vehicle a valid resident parking permit, or has hanging from the front rear-view mirror located on the inside of the vehicle a valid resident guest parking permit, or has a day permit which allows all-day parking and is valid only on the day of use between the hours of 8.a.m. to 5 p.m.

SECTION 8. Use Fees for Residential Parking Permits and Guest Parking Permits shall be: (i) 1st Residential Parking Permit - $50; (ii) 2nd Residential Parking Permit - $50; (iii) 3rd Residential Parking Permit - $50; (iv) 4th Residential Parking Permit - $50; and (v) Guest Parking Permit - $50.

The amount of these fees shall be reduced by one-half on the first day of September each year. Where a person to whom a valid Residential Parking Permit has been issued can furnish proof satisfactory to the City Manager of designee that said permit has been destroyed (portion of Parking Permit or portion of windshield to which permit has been attached), or stolen, the Department may issue a duplicate permit upon payment of a replacement fee of $3.00 to cover clerical cost. It is understood that the permits reported stolen will be immediately confiscated by the City if found on any vehicle and that stolen permits are thereafter completely void. vehicles with stolen permits shall be subject to immediate ticketing and towing.

SECTION 9. It shall be the sole responsibility of the owner, operator, manager, or driver of a vehicle for which a valid parking permit has been issued to become familiar with the provisions for and the limitations on the use of the parking permit and ignorance of these provisions and limitations shall not be claimed as defense in any action brought for illegal use of the permit. 374

SECTION 10. In the Impacted Area, that area posted "One-Hour Parking", parking on-street shall be restricted to one-hour parking from 8:00 a.m. to 5:00 p.m., every day during summer months, which is defined, for the purpose of this Section, as May 15th through September 15th.

In the Impacted Are, where posted, there shall be no parking on-street except with resident or resident guest parking sticker from 2:00 a.m. to 6:00 a.m.

SECTION 11. Courtesy Guest Parking Permits may be issued by the City Manager or designee for special events only (i.e., parties, weddings, showers, etc.). In order to obtain said permits, the requestee:
(a) Must· show proof of residency-within the impacted area. (b) Must show valid vehicle registration at the same address. (c) Shall have paid all outstanding traffic tickets.
(d) Must have already purchased an annual parking permit.

All courtesy guest parking permits shall be for one day only, and a maximum of twenty permits shall be issued for any one event. A maximum of five requests may be made annually. The cost of the courtesy guest parking permits shall be $1.00 per permit with a maximum charge of $5.00 per single event.

In the event of reasonable and extenuating circumstances demonstrating a hardship which is unique to the individual requesting the permit, the City Manager or designee may waive one or more of the prerequisites, including 11d.

In no event shall the authority given to the Director or designee be used to grant a special privilege to any person.

SECTION 11. Environmental Review. Pursuant to CEQA Guidelines section 15061 (b) (3), it can be seen with certainty that there is no possibility that the activity contemplated by this resolution may have a significant effect on the environment.

SECTION 12. This resolution shall take effect immediately.

SECTION 13. Severability. If any section, subsection, subdivision, sentence, clause, phrase, or portion of this resolution is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remainder of this resolution. The City 375

Council hereby declares that it would have adopted this resolution, and each and every section, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions thereof is declared invalid or unconstitutional.

SECTION 14. Record of Proceedings. 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. The City Clerk shall keep a copy of same along with such other documents and records of proceedings as may be designated by the City Manager.

SECTION 15. 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 the same is passed and adopted.

PASSED, APPROVED and ADOPTED on this 12th day of December, 2023.

Justin Massey
PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, CA ATTEST: APPROVED AS TO FORM:
________________________________ ________________________________ Myra Maravilla Patrick Donegan
City Clerk City Attorney
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City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 23-0684
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of December 12, 2023

AUTHORIZATION TO EXECUTE A CONTRACT FOR
CIP 616 BARD TRAILER IMPROVEMENTS AND TO ISSUE

PURCHASE ORDERS FOR IT EQUIPMENT AND OFFICE FURNITURE
(Public Works Director Joe SanClemente)
Recommended Action:

Staff recommends City Council:

1. Authorize the City Manager to execute a contract with Pacific Mobile Structures in the amount of $246,949.89 for modifications and maintenance of the Bard Trailer (CIP 616) (Attachment 1);

2. Appropriate additional funds from the Capital Improvement Fund in the amount of $21,645 to CIP 616 Bard Trailer Improvements;

3. Transfer funds from the Public Works Administration and Engineering contract services account in the General Fund in the amount of $32,566.36 to CIP 616 Bard Trailer Improvements;

4. Authorize City staff to establish a 10 percent contingency amount of $24,694.99 and approve contract change orders up to the amount of the approved contract contingency;

5. Adopt the attached resolution entitled “A Resolution of the City Council of the City of Hermosa Beach, California Approving the Maintenance and Improvements of the Bard Trailer (CIP 616) Pursuant to Government Code Section § 830.6 and Establishing a Project Payment Account” (Attachment 2);

6. Authorize the issuance of a Purchase Order to Netrix, LLC in the amount of $32,566.36 to purchase and configure IT equipment for the Bard Trailer (Attachment 5); and

7. Authorize the issuance of a Purchase Order to M3 Office under qualifying cooperative purchase agreements in the amount of $29,284.47 for Bard Trailer office furniture (Attachment 6).

Executive Summary:

The modular building behind the Hermosa Beach Civic Center, which has been in place since 2016, was installed to house fire department personnel during construction activities at Fire Station 100.

The structure remained in place post construction and was identified to serve a need for additional office space. CIP 616 Bard Trailer Improvements was added to the Capital Improvement Program City of Hermosa Beach Page 1 of 7 Printed on 12/7/2023
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office space. CIP 616 Bard Trailer Improvements was added to the Capital Improvement Program during the FY21-22 Midyear Budget review and includes modifications to the space to meet operational needs. Staff recommends authorization to execute a contract with Pacific Mobile Structures to perform modifications and maintenance to the structure and to issue purchase orders to Netrix, LLC for IT equipment and M3 Office for the purchase of office furniture.

Due to the unique nature and scope of this project, staff proposes to utilize cooperative purchasing agreements and a contract with an existing service provider to procure the services required to complete the work. These procurement methods are allowed by the City of Hermosa Beach Municipal Code (HBMC) and would allow staff to complete the project efficiently and economically.

Background:

In 2016, following the decision to demolish the fire station tower, Council approved a purchase agreement with Pacific Mobile Structures for a 36-foot by 60-foot modular building to house fire department personnel during construction of CIP 14-623 Fire Department Tower Demolition, as well as to address ongoing space needs. The modular building was also used by the fire department during construction of the fire station renovation project from October 2019 to August 2020.

Since that time, the building remained largely unused due to safety concerns with the temporary overhead electrical system, which has now been de-energized. CIP 616 Bard Trailer Improvements was added to the Capital Improvement Program during the FY21- 22 Midyear Budget review to address urgent space needs for City staff and convert the modular building from fire department dormitory space to office space.

The improvements planned as part of the CIP generally include undergrounding of the existing temporary overhead electrical service for safety and code compliance; replacement and upgrade of components of the interior and exterior of the building to meet current standards and provide a suitable environment for office staff; procurement and configuration of Information Technology (IT) equipment; and the addition of an entrance ramp to meet current accessibility requirements.

Staff identified cooperative purchase as a viable option for the maintenance and improvements to the temporary trailer and purchase of office furniture. This procurement method allows staff to work directly with vendors awarded contracts based on the results of competitive proposal processes; with unique expertise; that supply the materials; and perform the work. Cooperative purchasing also allows the City to take advantage of the most competitive pricing by accessing pre-negotiated prices as part of national contracts.

HMBC § 3.12.140(e) allows purchases to be “made through a cooperative purchasing program utilizing purchasing agreements maintained by the State, County, or other public agencies.” The IT equipment required to outfit the space for office functions would be procured from and City of Hermosa Beach Page 2 of 7 Printed on 12/7/2023
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The IT equipment required to outfit the space for office functions would be procured from and installed/configured by Netrix, LLC, the City’s contracted managed service provider that provides ongoing technology support and staff augmentation in lieu of a traditional IT division or department.

HBMC § 3.12.140(d) establishes that “computers and peripheral equipment” are exempt from the provisions of § 3.12 Purchasing.

Past Council Actions
Meeting Date Description
City Council Meeting of
October 27, 2015
City Council approved the purchase of modular building for fire department dorms from Pacific Mobile Structures.

City Council Meeting of
May 10, 2016
City Council approved purchase of fire department
dormitory trailers from Pacific Mobile Structures at a
reduced price.

Analysis:

Award of Contract for CIP 616 (Bard Trailer Improvements) Staff reached out to the original vendor, Pacific Mobile Structures, to inquire about the work necessary for the trailer. Pacific Mobile Structures, the manufacturer of the trailer, was awarded a contract through The Interlocal Purchasing System (TIPS), a national purchasing cooperative that offers access to competitively procured purchasing contracts to its membership.

TIPS administers a process similar to the City’s formal procedure for procurement of products and services that includes:
· Issuing a Request for Proposals (RFP) or Request for Qualifications (RFQ) for specific products and services with a deadline for submission;
· Advertising the RFP/RFQ publicly;
· Collecting and scoring proposals based on reviews by a scoring committee; and · Awarding contracts to qualified vendors.

TIPS membership is free and available to entities such as state and local governments, school districts, colleges and universities, emergency services districts, and non-profit organizations.

Utilizing TIPS offers the City the following benefits:
· Access to competitively procured contracts with quality vendors; · Savings of time and financial resources necessary to fulfill bid requirements; and · Access to pricing based on a national contract.

Following HBMC provisions, staff recommends utilizing TIPS to contract with Pacific Mobile Structures to complete the Bard Trailer renovations. Staff received a quote from Pacific Mobile Structures in the amount of $246,949.89 (Attachment 1) to complete maintenance and City of Hermosa Beach Page 3 of 7 Printed on 12/7/2023
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Structures in the amount of $246,949.89 (Attachment 1) to complete maintenance and improvements to the trailer. The cost of the improvements through Pacific Mobile Structures would result in a significant cost and time savings versus other means of procurement. In addition, Pacific Mobile Structures has the most unique knowledge of its trailer.

Staff also considered purchasing a new trailer, but determined that option would cost substantially more than a renovation.

Award of Purchase Order for Bard Trailer IT Equipment and Installation Netrix, LLC is the City's contracted managed services provider and provides ongoing technology support and staff augmentation in lieu of a traditional Information Technology (IT) division or department. Support and maintenance of the City's network is one of the core responsibilities of the service, but the ongoing services contract scope does not cover the process of adding new network equipment.

HBMC § 3.12.140(d) establishes that “computers and peripheral equipment” are exempt from the City’s purchasing code and do not require the solicitation of three quotes. Staff received a quote from Netrix, LLC in the amount of $32,566.36 (Attachment 5) and informally compared the proposed hardware costs to prices of other merchants online and found the prices offered through Netrix to be competitive.

The proposal provided by Netrix, LLC covers the purchase of IT equipment to connect the Bard Trailer facility to the City's network and set up the network infrastructure to connect staff workstations, as well as the professional services to configure the equipment. The equipment includes two Siklu Etherhaul 614TX wireless bridges, one HPE Aruba 6200F network switch, one HPE Aruba AP-615 wireless access point, mounting equipment for the wireless access point and wireless bridges, equipment to provide power to the wireless bridges, and the appropriate licensing and warranties for this hardware. The same equipment was recently purchased for other City facilities as part of the regular replacement cycle.

Award of Purchase Order for Bard Trailer Office Furniture Staff recommends utilization of California Multiple Award Schedules (CMAS) Contract 4-23-01-104 and Los Angeles County Government Cooperative Contract MA-IS-1940141-11, for the purchase of office furniture. These agreements were established by the State of California and Los Angeles County. Direct purchase of furniture is permitted through CMAS and Los Angeles County which operates as a streamlined procurement option, offering competitively assessed and pre-negotiated products and services. This ensures that the City will benefit from the most competitive pricing.

Following provisions of HBMC § 3.12.140(e), staff recommends awarding the purchase order in the amount of $29,284.47 (Attachment 6) to M3 Office, a member of the CMAS and Los Angeles County cooperative purchase agreements. Additionally, the selected furnishings are Forest Stewardship City of Hermosa Beach Page 4 of 7 Printed on 12/7/2023 powered by Legistar™380
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cooperative purchase agreements. Additionally, the selected furnishings are Forest Stewardship Council certified, which means that the wood in the furniture comes from forests that are managed in an environmentally responsible and sustainable manner. This purchase aligns with the City’s sustainability purchasing goals and commitment to environmental stewardship.

Schedule
If approved, staff would provide oversight and inspection services to oversee the maintenance and improvements. Staff anticipates work to start in February 2024 with an anticipated completion date in April 2024.

Environmental Analysis
The Project is exempt under the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15301 (Existing Facilities). The proposed improvements and maintenance of an existing temporary trailer involved negligible or no expansions of the existing temporary use. No exceptions to the CEQA exemption apply.

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.

Goal 3. Excellent customer service through the use of emerging technologies.

Policy:
· 3.1 Increased access to services. Strive to provide access to facilities, programs, and services at times and locations that are convenient for residents and businesses.

Sustainability + Conservation Element
Goal 6. Hermosa Beach is a low or zero-waste community with convenient and effective options for recycling, composting, and diverting waste from landfills.

Policies:
· 6.5 Recycled materials. Encourage and support the sale of products that minimize packaging or are made from recycled materials.
· 6.7 Green purchasing. Evaluate “green purchasing” options across all City departments and consider the life cycle effects of purchases.
· 6.9 Building salvage. Maximize building salvage and deconstruction in remodeling or building City of Hermosa Beach Page 5 of 7 Printed on 12/7/2023
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· 6.9 Building salvage. Maximize building salvage and deconstruction in remodeling or building demolition projects.

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

Policy:
· 1.8 Minimize recurring repairs. Ensure that recurring repairs to City facilities are minimized by investing in low maintenance materials and performing preventive procedures where available.

Fiscal Impact:

The contract with Pacific Mobile Structures in the amount of $246,949.89 for modifications and maintenance of the Bard Trailer and a 10 percent contingency of $24,694.99 would total $271,644.88. CIP 616 Bard Trailer Improvements is funded through the Capital Improvement Fund with appropriations totaling $250,000. Staff requests an additional appropriation of $21,645 from the Capital Improvement Fund to cover the additional amount needed to fund a 10 percent contingency in case of unknowns or where additional work is required.

The purchase and configuration of IT equipment through Netrix, LLC would be covered by a transfer of $32,566.36 from the Public Works Administration and Engineering Contract Services account in the General Fund to CIP 616 Bard Trailer Improvements.

Funds for the Bard Street Trailer furniture is budgeted in the FY23-24 Budget, City Manager, Contract Services Account. Sufficient funds are available to cover the purchase order of $29,284.47 with M3 Office.

Purchase Order Request
Request Amount FY 2023-24 Budget Dept. Account # Total Purchase Order Amount
$32,566.36 001-8616-4201 $32,566.36
$29,284.47 001-1201-5402 $29,284.47
Attachments:

1. Price Quote-Bard Trailer Improvements

2. Draft Resolution
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3. Link to October 27, 2015 City Council Staff Report

4. Link to May 10, 2016 City Council Staff Report

5. Price Quote-IT Equipment Statement of Work and Equipment List

6. Price Quote-Furniture Purchase and Installation
Respectfully Submitted by: Stephanie Holst, Senior Engineer Concur: Alexandria Hildebrand, GIS/IT Analyst
Concur: Margaret Talamantes, Senior Management Analyst
Concur: Lucho Rodriguez, City Engineer
Concur: Joe SanClemente, Public Works Director
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 7 of 7 Printed on 12/7/2023
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Michael Thompson
Cell: 951.816.0977
Direct: 951.246.5163
Authorized Representative Signature Date
[email protected]
Site: City of Hermosa Beach
Project quotation
Date: 10/23/2023
Company: City of Hermosa Beach
Proposal Description: Remodel – 36x60 Office
Task Description Qty Unit Unit Sales Price Total Sales Price Tax General Requirements
30 Sheets of White VCG, 60 Trim 1" Trim and 20 Corner Trim 1 EA $6,776.52 $6,776.52 Y Site Work
Excavate, trench for electrical and IT from panel to subpanels.

Replace overhead service with underground from panelto trailersubpanels. Install 3” conduit in electrical trench for IT.

Service three A/C units, acid wash coils, test units and report.

Replace all exterior trim with smart trim around trailers, 380’4”& 420’ 8” Replace 168’ of high set skirting with new smart panel, backing and vents.

Remove all antennas, speakers, satellite dish and disconnected apparatus on EXT.

Replace 18 sheets of 10’ smart panel inner seal siding.

Prep and paint exterior two tone.

Disconnect all old residential type lights and cap wires.

Replace 25 fluorescent lights with LED troffers.

Repair T bars and replace approx..160 ceiling tiles (2910) Remove wall cabinets, all speakers, phones and white board.

Install carpet bar at 5 doors.

Provide and install 8 miniblinds on 4x4 windows.

Clean duct tape residue or replace one window.

Repair interior wall trims.

Remove and replace cove base.

Remove approx.30 sheets of double layer drywall, paneling and prep walls. Install new white paneling on office walls and trim.

Patch carpet seams and steam clean carpet.

Remove LVP and VCT in entry and replace with LVP.

Prep and paint interior one color.

Drop 2 CAT6 drops in each office from IT room. No conduit or terminations. Suspend and secure all loose wiring in the ceiling.

Provide dumpster/ hauling of job debris.

Provide and install switchback ramp with steps, galvalume. 1 EA $212,925.60 $212,925.60 N
Option: Replace roof with white EPDM. 1 EA $24,444.00 $24,444.00 N Option: seal roof and caulk seams. 1 EA $2,160.00 $2,160.00 N Teardown
Equipment (Forklift, skating, etc.) EA N
Delivery
Transportation (Pilot, permit, tolls) EA N
Foundation & Install
Ramp Install EA N
Site Subs
Electrical - Subcontractor EA N
Subtotal $246,306.12
Tax 9.50%
Tax Total $643.77
Project Total $246,949.89
Customer Owned Building - Remodel
• Products and materials used that have a manufacturer warranty will be passed along to the City. • PMSI will provide a 6 month warranty on the craftsmanship.

Payment Terms:
• At the end of each month on-site, we will mutually determine the project's percentage of completion. Following this assessment, Pacific Mobile will submit a payment request aligned with the agreed-upon completion percentage. *Invoices due upon receipt.* • The quotation is good for 30 days and is limited to availability of stock on hand. Please schedule as soon as possible to secure your preferred delivery date. By signing below the Customer named below agrees to the conditions outlined in Pacific Mobile’s Terms and Conditions. 384
Michael Thompson
Cell: 951.816.0977
Direct: 951.246.5163
[email protected]
Project quotation
Date: 10/23/2023
Exceptions / Clarifications:
• Obtaining required County/City building permits, fees, and inspections not included. • Customer site must be dry, compacted, level, and accessible by normal truck delivery. • Any special site required escorts, safety meetings, or other site related down-time would be an additional cost. • Extra trip charges may incur if customer decides to stop work on site. • Standard setup does not include removal of axles, tires, and tow bars • Site improvements not included (fence, landscape, sidewalk, parking, lighting, etc.). Site survey or soils testing not included.
• Any special site testing requirements would be an additional cost. • All utility connections to modular building are not included. (Electrical, water, sewer, etc.) • All low voltage wiring, devises, panels, and monitoring not included. • Site security, temporary toilets, or garbage dumpsters not included. • Proper site drainage or SWPPP plan not included.
• Pricing good for 30-days
385
Michael Thompson
Project quotation
Date: 10/23/2023
Cell: 951.816.0977
Direct: 951.246.5163
[email protected]

ADDITIONAL TERMS AND CONDITIONS

1. AGREEMENT: The essence of the contract set forth on the face page of this Agreement is that Pacific Mobile Structures, Inc. (“Seller”) agrees to provide and deliver the specified mobile/modular building(s) and related equipment (Property); and, in exchange, Buyer will fulfill the specified payment terms.

Seller and Buyer’s signatures and initials acknowledge the following terms and conditions have been reviewed and are also part of this Agreement.

2. PAYMENT

2.1 Terms: Buyer agrees that the price and payment terms are fully and accurately set forth on the face page of this Agreement. Buyer acknowledges that by entering into this Agreement, Buyer is causing Seller to incur costs associated with delivering the product and services bargained for in this Sales Agreement. Payments are due on receipt in the amount described on each invoice and shall be deemed late if not paid within 15 days of the invoice date, unless otherwise specified on the face page of this agreement, at which time a finance charge of 1% per month may be assessed until paid.

2.2 Financing: Buyer agrees to indicate in writing (under the payment terms on the face page of this Agreement) if Buyer’s purchase is subject to financing. Buyer agrees that representing in bad faith or without a reasonable basis that financing is forthcoming from a third-party is deemed a breach of this Agreement and will subject Buyer to the default clause remedies set forth below. If Buyer makes a good faith and reasonable representation but is unable to ultimately obtain third- party financing sufficient to satisfy the payment terms, Buyer agrees that Seller has the option to extend reasonable financing terms and Buyer will be obligated to enter into a retail installment contract and sign a security agreement or other agreement as may be required for Seller to finance Buyer’s purchase.

3. SITE CONDITIONS: Buyer is aware that the delivery site must be dry, compacted level and accessible for industry standard maneuvering by normal mobile/modular truck tow. If the site’s condition reasonably prevents delivery, then the extra costs for equipment, labor and down time to remedy the situation are the Buyer’s responsibility and will be addressed by change order.

4. SCHEDULE; DELAYS; INCREASE IN PRICE AND/OR TIME; STORAGE: Delivery and any setup work will begin and be substantially completed on the dates set forth on the face page of this agreement and/or in an addendum modifying the dates. However, delays may occur due to unforeseen circumstance beyond Seller’s control, including, but not limited to: extreme weather conditions; fire; transportation delays; unavoidable accidents or circumstances; unacceptable site conditions; Buyer’s acts or omissions. Excusable delays do not subject Seller to penalties or damages. In reasonable instances, Seller may modify the Contract price to reflect additional incurred expenses and/or modify the Schedule to account for delays. If Buyer delays the building review beyond a reasonable time or outlined schedule, Seller may reevaluate the contract price. If Seller is unable to deliver the mobile/modular building(s) due to Buyer's site delays, a storage fee will begin seven days after completion at the factory or the predetermined delivery date, whichever is later. Buyer agrees to pay a pro-rated monthly storage fee at a rate of $0.20 per square foot of each floor until the Buyer is able to take delivery. If space is unavailable, Buyer must either transport to an alternative site or Seller will do so unilaterally and pass the expense to Buyer.

5. DELIVERY AND PLACEMENT

5.1 Transportation Permits: Buyer is aware that special permits may be required to transport the mobile/modular building(s) to final destination, and that permits are often granted, granted conditionally, or denied based upon the width of the mobile/modular building. Seller will seek to obtain the transportation permits ordinarily required. However, if additional local permits are required, those additional fees will be passed on to the Buyer. Further, if a transportation permit is denied or is granted conditionally, Buyer will not make claims against Seller. If Seller cannot obtain transportation permits, Seller may, at its option, cancel this Agreement and return the progress payment without further liability or obligation.

5.2 Building Permits: Buyer is responsible for obtaining building and site permits. Seller cannot deliver/place buildings until they have the building and/or site permit, if required. If Buyer fails to obtain a necessary permit, or fails to make any required changes, and in either case as a result Seller incurs any costs, fines or forfeitures, Buyer will pay the amount of any such cost, fine or forfeiture to the Seller on demand.

5.3 Site Conditions: Buyer is aware that the delivery site must be dry, compacted level and accessible for industry standard maneuvering by normal mobile/modular truck tow. If the site condition prevents delivery, then the extra costs for equipment, labor and down time to remedy the situation are the Buyer’s responsibility and will be addressed by change order.

6. CHANGES: Seller may add to or deduct from the amount of work covered by this Agreement, and any changes so made in the amount of work involved, or any other parts of this Agreement, shall be by a written change order hereto setting forth in detail the changes involved and the value thereof which shall be mutually agreed upon in writing between the Seller and the Buyer.

7. TAXES: Buyer shall be solely responsible for filing the appropriate federal, state and local tax forms, and paying all such taxes or fees, including sales taxes, estimated taxes and employment taxes, due with respect to Buyer’s purchase under this Agreement.

8. TITLE AND RISK OF LOSS: Ownership title to the Property shall pass to Buyer when the purchase price is paid in full. However, Buyer assumes and bears the risk of Property loss the moment the Property is delivered to the Buyer’s site. It is Buyer’s responsibility to arrange with Buyer’s insurance representative adequate and timely insurance coverage. Buyer waives any claims against Seller relating to risk or loss after delivery, even if Buyer’s insurance is not yet effective. The sole exception to the above is that any loss caused by Seller’s operations during delivery and/or any agreed upon set-up will be covered to the extent it falls within Seller’s CGL insurance policy coverage.

9. INDEMNITY, INSURANCE AND WAIVER OF SUBROGATION: Buyer shall be responsible for obtaining and maintaining its own liability and property insurance. Seller agrees to defend, indemnify and hold harmless Buyer from claims for bodily injury and property damage caused by Seller’s negligence.

However, this indemnification is contingent upon Seller’s CGL insurer providing coverage and is limited to the amounts paid by Seller’s CGL insurer. Buyer agrees to defend, indemnify and hold harmless Seller and its Subcontractors from claims for bodily injury and property damage caused by the negligence of Buyer and its agents. Buyer and Seller waive all non-trustee rights against each other for damages caused by risks covered by insurance.

10. WARRANTIES

10.1Used Units are sold “As Is”: Buyer is not relying on any written, oral, implied or other representations, statements or warranties by Seller or any of Seller’s affiliates, or any of Seller’s respective agents, officers, representatives, or otherwise. Seller specifically makes no representations, express, implied, statutory or otherwise, with respect to the unit being purchased, its current condition, or its fitness or suitability for any particular use or purpose.

10.2 New Units:

10.2.1 Seller’s Warranty: Pacific Mobile Structures, Inc., warrants to the first Buyer the commercial building sold to Buyer to be free from defects in materials and workmanship when properly maintained and in normal use.

10.2.2 Buyer's Remedy: Buyer's exclusive and only remedy under this warranty shall be Seller’s repair or replacement, at Seller’s option, of any defect(s) in materials or workmanship of the subject building. Unless otherwise agreed in writing between Seller and Buyer, repairs under this warranty shall only be made at the original site of installation of the subject building. In the event the repair or replacement of the defect(s) in materials or workmanship of the subject building are needed and can be repaired by Buyer for $100 or less on an actually incurred cost basis, Buyer may perform the repair or replacement and receive reimbursement from Seller. Requests for reimbursement shall be made in writing and shall contain sufficient detail to permit 386
Michael Thompson
Project quotation
Date: 10/23/2023
Cell: 951.816.0977
Direct: 951.246.5163
[email protected]
Seller to evaluate the nature of the defect(s). All parts removed during repair shall be retained by Buyer for Seller’s inspection for thirty (30) days from Seller’s receipt of Buyer's request for reimbursement. Seller shall have thirty (30) days from its receipt or Buyer's request to accept or reject it. If not rejected in that time period, the request shall be deemed accepted.

10.2.3 Duration of Warranty: 24-month warranty on major building components (roof, siding, structural issues, leaks); 12-month warranty on interior sheetrock repairs, light ballasts, door adjustments. The warranty period begins on the date of substantial completion. Excludes light bulbs, filters and adjustment of foundation due to ground water or settling of ground. HVAC warranty is covered by supplier (see manufacturers brochure for specific labor and materials warranties)

10.2.4 Buyer's Duties: Notice of Any Defects. Buyer shall give prompt written notice of any defects in materials or workmanship to Seller with sufficient detail to permit Seller to perform its obligations under this warranty.

10.2.5 Notice of Breach: Buyer shall give written notice to Seller of any alleged refusal or failure of Seller to repair or replace defects in materials or workmanship under this warranty not later than fifteen (15) days after Buyer learns of such alleged failure or refusal.

10.2.6 Disclaimer: The foregoing warranty is exclusive and is given and accepted in lieu of (i) any and all other warranties express or implied, including without limitation the implied warranties of merchantability and fitness for a particular purpose; and (ii) any obligation, liability, right, claim, or remedy in contract or tort, whether or not arising from Seller’s negligence, actual or imputed. The remedies of Buyer shall be limited to those proved herein to the exclusion of any other remedies, including without limitation incidental or consequential damages. No agreement varying or extending the foregoing warranty, remedies or this limitation shall be binding upon Seller unless in writing, signed by a duly authorized officer of Seller.

10.2.7 Exclusions From Warranty: This warranty and the obligations stated herein shall NOT apply to the following: The subject building, if it has been repaired or altered without the prior written approval of Seller; the subject building if it has been subjected to misuse, abuse, neglect, or accident; used items furnished by Buyer for installation on the subject building; any part of the subject building which is not defective, but which must be replaced during the warranty period as a result of wear and tear; electrical, plumbing or mechanical connections or systems installed in or on the subject building by persons other than Seller; any defects to the subject building caused by improper site preparation or site conditions, acts of God, fire, vandalism, riot, insurrection, or other civil disorder.

10.2.8 Limitations of Actions: No action for breach of this warranty shall be commenced more than one (1) year after the accrual of the cause of action.

10.2.9 Merger: This warranty is the complete, final, and exclusive warranty of Seller with respect to the quality or performance of the subject building and any and all warranties and representations in connection with it.

10.2.10 Governing Law: This warranty and the rights and duties of the parties under this warranty shall be governed by the laws of the state of Washington.

11. DEFAULT AND REMEDIES: Buyer is in material default and breaches this contract if Buyer: (1) fails or refuses to timely make the agreed upon payments; or, (2) delays the Seller’s delivery or services over 30 days; or (3) otherwise fails to satisfy the Agreement terms and conditions. If Buyer defaults, Seller may cancel this contract; and/or repossess its Property; and/or retain a portion of any payments already made by Buyer, sufficient to adequately compensate Seller for expenses or losses caused by Buyer’s default. If Seller has canceled the contract, or if Buyer has committed a material breach, then Buyer cannot thereafter claim to be canceling the contract and be entitled to a return of any payments already made by Buyer until Seller has had a reasonable opportunity to account for and deduct any damages (including costs incurred up to the time of cancellation) owed from any payments already made by Buyer. If Buyer has not made any payments or made payments that are insufficient to cover all losses, Seller will take other collection action (including legal). If repossession is necessary, Buyer will be liable for all repossession costs.

12. DISPUTE RESOLUTION: The parties shall first endeavor to settle disputes through informal direct discussions. If unsuccessful, any party may serve a written Notice requesting resolution that: explains the dispute in detail and provides all supporting evidence; and appoints a senior representative to negotiate the Dispute on its behalf. Buyer must serve such Notice to Seller’s corporate office. If unsuccessful, the parties may seek non-binding mediation.

Lastly, either party may submit the Dispute to the American Arbitration Association for arbitration.

13. ATTORNEY FEES; COLLECTION FEES; INTEREST; LIMITATION OF LIABILITY: Seller is entitled to recover reasonable pre-judgment and post judgment interest and other collection expenses, including attorney fees, incurred if Buyer defaults on payments. Seller shall also be entitled interest on delinquent invoices at the rate of 1% per month or the maximum rate permitted by law until such invoice is paid in full. Except for collection, arbitration or litigation actions, remedies shall be limited to direct out of pocket costs, unless noted otherwise herein.

14. SAFETY: Buyer shall assure, insofar as is reasonably possible, safe and healthful site conditions, including, but not limited to: assuring Buyer’s site complies with all applicable health, safety and environmental laws; and, assuming supervisory responsibility and function of all non-construction related parties on site during delivery and any set-up. Buyer shall be solely liable and responsible for any safety violation or deficiency.

15. GENERAL: This Agreement: (a) contains the entire Agreement between the parties and supersedes any and all other documents or information exchanged whether oral or written; (b) shall not be assigned or transferred in any manner by the Buyer without the prior written consent of the Seller; (c) may be modified only in a writing signed by both parties; (d) shall be governed by Washington State law and, if necessary, litigated in Washington State, either, in King, Thurston or Lewis Counties at Seller’s discretion; (e) the failure to insist on the performance of any part(s) of this Agreement, or to exercise any rights, shall not be construed as a waiver or relinquishment of such term, covenant or condition or right; and, (f) if any part of this Agreement, its Addendum or other related documents are found to be unenforceable, the remaining parts shall still be in full force and effect. This Agreement may be executed in counterparts and delivered via facsimile or other electronic means, with the same effect as the original.

16. ORDER OF PRECEDENCE: The terms and conditions and applicable agreements and documents shall adhere to the following order of precedence:

1. Prime Contract, if applicable

2. Pacific Mobile Structures Sales Agreement, Change Orders and Terms & Conditions

3. Buyer Agreement and Terms & Conditions

4. Buyer Purchase Order

5. Invoice
In Acceptance, Initials
387
Addendum to Project Quotation with City of Hermosa Beach Dated April 26, 2023
Section 4
Delete the fourth sentence and replace with the following:

In reasonable instances, upon written approval by both Parties, Seller may modify the Contract price to reflect incurred expenses and/or modify the Schedule to account for delays.

Section 9
Delete the third sentence in its entirety and replace with the following:

The LESSEE, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of seller, including materials, parts, or equipment furnished in connection with such work or operations.” Section 10.2.10
Replace "Washington" with "California".

Section 15(d)
Delete in its entirety and replace the following:

Shall be governed by California state.

Agreed and Accepted by:
___________________________________ ________________________________ City of Hermosa Beach Pacific Mobile Structures, Inc.

Authorized Signature Authorized Signature
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