Hermosa Beach City Council
February 27, 2024

2024
City of Hermosa Beach
Special Event Permit Application Overview
Event Title: Rams Draft Experience (Proposal B)
Impact Level: III
Proposed Event Date(s): Thursday, April 25, Friday, April 26, Monday, April 29, Tuesday, April 30, and Wednesday, May 1 with load-in Monday, April 22 through Wednesday, April 24, and load-out Thursday, May 2 through Friday May 3 Note: Event Infrastructure to remain in place between event days (Saturday, April 27 through Sunday, April 28) Applicant Name: Jordan Cohen
Organization Name: Los Angeles Rams/BuzzHive Creative
Non-Profit: NO/YES
Event Time: Field activation: 6am-10pm (tentative) & Beach, Schumacher Plaza, and Pier Plaza activations: 12-10pm (tentative)
Event Summary: Draft experience on Schumacher Plaza, Pier Plaza and the beach south of the Pier. Schumacher Plaza and Pier Plaza would have interactive activities for the public such as giveaways, a spirit station, photo opportunities, and face painting. The beach south of the Pier would include a stage for musical performances and a screen for attendees to watch the NFL Draft and listen to panels of players, legends, and coaches. The aforementioned activities would only take place Thursday, April 25, and Friday, April 26. This option would also include a temporary football field on the beach south of the Pier to run sports clinics and tournaments, and general free play on Thursday, April 25, Friday, April 26, Monday, April 29, Tuesday, April 30, and Wednesday, May 1.

Returning Event: NO/YES
Event Location (Site Map Attached): Pier Plaza and Beach south of the Pier Estimated Number of Participants: A maximum of 5,000 per event day Age of Participants: All ages
Participant Fee: None
Parking: Yes
Amplified Sound: Yes
Generator(s): Yes
Fenced Area(s): Yes, to protect production equipment around the stage, and waist high barricades would be around the football field to control ingress and egress of the field, and to keep attendees off the field during unsupervised hours Stage(s), Structure(s) or Tent(s): Yes – stage, football field, signs, tents that exceed 10’ by 10’ Security: Yes
Sponsor(s): None
Estimated Fees Payable to the City
Application (Commercial) $1,028
Category III $3,599 per event day x 5 event days = $17,995 Set-up (Beach) $310 per location, per set-up day x 1 locations and 3 set-up day = $930 Set-up (Schumacher Plaza & Pier Plaza) $310 per location, per set-up day x 2 locations and 1 set-up day = $620 Tear-down $310 per location, per tear-down day x 1 location x 2 tear-down days = $620 767

Pier Plaza Use $13,697 per use day x 2 use days = $27,394 Amplified Sound $201
Parking TBD
*Additional fees to apply due to required staffing and/or services from the City of Hermosa Beach’s Community Resources Department, Community Services Department, Public Works Department, Police Department and the Los Angeles County Fire Department.
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RAMS DRAFT IN HERMOSA BEACH
2024 LA Rams Draft Events
Preliminary Program Details
769

TABLE OF CONTENTS
2024 LA RAMS DRAFT EVENTS

01. INTRODUCTION - WHY 2024?

02. PROPOSAL A - RAMS DRAFT EXPERIENCE

03. PROPOSAL B - COMMUNITY BEACH EVENTS
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01 WHY 2024?
The NFL Draft is every April…why is the 2024 draft so
special for the LA Rams?

INTRODUCTION
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WHY 2024?

INTRODUCTION
The 2024 NFL Draft is special for the Los
Angeles Rams… ● The last time the Rams had a 1st Round pick in the draft was in 2016 when they traded up to the
#1 pick in the draft in their first year back in LA.
● Picks can be traded up until the trade deadline
during the NFL season, but cannot trade picks
after that date or before the draft.
● We don’t know when the Rams will have another
1st Round draft pick to celebrate…it could be
another 8 years or more, so…
● Let’s celebrate this pick since we know we’ll be on
the clock on Day 1!!!
● We’d like to execute the Rams Draft Experience
Takeover (Proposal A) and supplement it with the
Community Beach Events (Proposal B) to really
show the world what Hermosa Beach is all about.
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02 RAMS DRAFT EXPERIENCE
The Rams Draft Experience will takeover Hermosa
Beach, creating a destination for Rams Fans on the first two days of the NFL Draft

PROPOSAL A
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TIMELINE

RAMS DRAFT EXPERIENCE
Pier Plaza, Schumacher Plaza, & South Commercial Zone
● Load-In:
○ Wednesday, April 24, 2024
■ 7am - 7pm
● Event:
○ Thursday, April 25, 2024
■ Draft Experience: 12pm-10pm
■ Round 1 Live: 5pm - 8pm
■ Post Draft Night #1 Concert: 8pm - 10pm
○ Friday, April 26, 2024
■ Draft Experience: 12pm-10pm
■ Rounds 2 & 3 Live: 5pm - 8pm
■ Post Draft Night #2 Concert: 8pm - 10pm
● Load-Out:
○ Friday, April 26, 2024
■ 10pm to completion
■ Clear by Surfers Walk of Fame event load-in
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval. 774

ACTIVITIES

RAMS DRAFT EXPERIENCE
Pier Plaza & Schumacher Plaza Activations
● Rams Draft Takeover of Pier Plaza & Schumacher Plaza
● Live Thursday, April 25th & Friday, April 26th ONLY
● Rams Van, spirit station, photo opps, and amplified music in the plazas
● No stage in Pier Plaza due to potential crowd size concerns ● Signage, lighting, and removable vinyl walkway decals on Pier Avenue from Hermosa Ave to The Strand leading up to Pier Plaza activation space for a full takeover of the space
● Restaurant buy-outs next to Pier Plaza activation space for VIP events
● Rams Draft branding only on Thursday & Friday to not interfere with weekend Surfers Walk of Fame activities
● No tickets required to attend
● Light Pole Banners (*with Non-Profit Information required) ● St. Patrick’s Day Parade Pre-Promotion: March 16th (bands, performers, floats, vehicles, etc.)
● All elements clear by Saturday morning for Surfers Walk of Fame event
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval. 775

ACTIVITIES

RAMS DRAFT EXPERIENCE
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval.

Rams Draft Stage
● Live Thursday, April 25th & Friday, April 26th ONLY
● Stage & truss system built for watching the draft live, announcing picks, & possible performances (size TBD)
● Live Rams “broadcast” during the 1st-3rd rounds of the NFL Draft
○ Hosted by JB Long (radio voice of the Rams)
○ Interviews with Legends & current players
○ Highlight Surfers Walk of Fame Weekend
● No tickets required to attend
● Stage to be removed after the event is over on the evening of Friday, April 26th
● Event staff will make sure spectators keep clear of the volleyball courts to allow for pre-scheduled classes to take place without interruption. Barricades will be added to separate the spaces if requested by the city.
● Reserved ADA space located just off of ADA walkway
(shown in blue on the map)
● Provide 8 standard & 2 ADA portable restrooms and hand wash stations to the concrete pad north of the permanent restrooms
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EVENT STAFFING

RAMS DRAFT EXPERIENCE
Rams Draft Experience - Hermosa Beach Takeover ● Activation Staff ○ Rams Hype street team ● Production Staff ○ Event crew (setup/strike, cleaning, etc.) ○ Audio, video, & lighting technicians ● Talent ○ South Commercial Zone State ■ Emcee/Host ■ Former/Current Players ■ Coaches/Execs ■ Musical Guests (TBD) ○ Pier Plaza/Roaming ■ Emcee/Host (Announcements) ■ Cheerleaders & Mascot ■ Mariachi Los Rams ● Security Staff ○ Line management in Pier Plaza ○ Stage access control/overnight watch ○ Crowd control in South Commercial Zone 778
Extend the Rams Draft Experience by building a football field on the beach for community events and to highlight the beautiful Hermosa Beach even further.

PROPOSAL B
03 COMMUNITY

BEACH EVENTS
779

TIMELINE

COMMUNITY BEACH EVENTS
South Commercial Zone
● Load-In Dates:
○ Monday, April 22 - Wednesday, April 24
■ 7am to 7pm each day
● Event Dates:
○ Thursday, April 25
■ Pre-Draft - Clinics
■ During Draft - Stage Viewing Platform
○ Friday, April 26
■ Pre-Draft - Clinics
■ During Draft - Stage Viewing Platform
○ NO ACTIVITIES: Saturday, April 27 & Sunday, April 28
○ Monday, April 29
■ Community Clinics - Local Elementary Schools
○ Tuesday, April 30
■ Community Clinics - Local Rec Leagues
○ Wednesday, May 1
■ Community Clinics - Top SoCal Prospects
● Load-Out Dates:
○ Thursday, May 2 - Friday, May 3
■ 7am to 7pm each day
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval. 780

ACTIVITIES

COMMUNITY BEACH EVENTS
Community Beach Events
● Active Thursday, April 25th & Friday, April 26th; Monday, April 29th through Wednesday, May 1st
● Arena sized football field built with interlocking sub-floor base on the sand and field turf placed on top of sub-floor; field will be level with the sand
● Football clinics, competitions, and other activities with local community organizations (rec leagues, pop warner teams, flag teams, schools, etc.)
● No tickets required to watch scheduled activities
● Supervised “free-play” time scheduled on field for beach visitors with liability waiver station
● No fencing around area, just waist high barricade/snow fencing to control traffic flow in and out of field
● Build it as close to The Strand as possible to give ADA access to the activities (white path & reserved blue viewing area on map)
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval. 781

ACTIVITIES

COMMUNITY BEACH FIELD - SOUTH OF PIER
* All renderings are just idea starters showing possible activation area and stage locations. Final locations and sizes to be determined by city/council approval.

Volleyball Court Relocation
● With direction of city staff, we will remove and relocate 3-6 beach volleyball courts on Monday, April 22nd to allow for enough courts for pre-scheduled volleyball classes and
public free play during the duration of the time the
temporary field is set on the beach.
● The courts are being moved to allow for easier access to the temporary field for ADA participants to enjoy the
community beach activities in the designated blue area
marked on the rendering next to the field.
● These courts will remain open to the public or
pre-scheduled classes during all Rams related activities in the south commercial zone during the entire event period. ● Event staff will make sure spectators keep clear of the volleyball courts to allow for pre-scheduled classes to take place without interruption. Barricades will be added to separate the spaces if requested by the city.
● The re-located courts will be re-installed in their original locations on Friday, May 3rd after removal of the temporary field is complete.
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EVENT STAFFING

COMMUNITY BEACH EVENTS
Community Beach Activities & Events ● Activation Staff ○ Rams Play 60 Community Team for football activities
○ Rams Hype Street Team for waiver station
● Production Staff ○ Event crew (setup/strike, cleaning, etc.) ○ Audio & lighting technicians during programmed activities
● Talent ○ Current & former players ○ Rams Football Academy Coaches ● Security Staff ○ 24/7 supervision of the temporary football field ○ Line management staff during programmed activities
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All materials contained in this document are protected by copyright laws, and may not be reproduced, republished, distributed, transmitted, displayed, broadcast, or otherwise exploited in any manner without the prior express written permission of BuzzHive Agency. BuzzHive Agency’s designs and all related materials, trade names, and other intellectual property are the property of BuzzHive Agency and cannot be used without its prior express of written permission. 790

TENTATIVE
2024 SPECIAL EVENTS

CALENDAR
City of Hermosa Beach
Community Resources Department
710 Pier Avenue, Hermosa Beach, CA 90254
(310) 318-0280
[email protected]
791
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 Sidewalk Sale
Hermosa Avenue,
Pier Avenue & Pier Plaza
Impact Level II
7 Sidewalk Sale
Hermosa Avenue,
Pier Avenue & Pier Plaza
Impact Level II
8 9 10 11 12 13 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
14 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
15 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
16 17 18 19 20
21 22 23 24 25 26 27 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
28 29 30 31
January 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
792
Sun Mon Tue Wed Thu Fri Sat
1 2 3 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
4 5 6 7 8 9 10 SCVA
Day at the Beach
North Volleyball Courts
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
26 27 28 29 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
February 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
793
March 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 Beach Tennis Tournaments
Beach Tennis Courts
2 HBLL Opening Day
Clark Field
Impact Level II
Beach Tennis Tournaments
Beach Tennis Courts
3 Beach Tennis Tournaments
Beach Tennis Courts
4 5 RUHS Volleyball Matches
North Volleyball Courts
6 7 RUHS Volleyball Matches
North Volleyball Courts
8 9
10 11 12 RUHS Volleyball Matches
North Volleyball Courts
13 14 RUHS Volleyball Matches
North Volleyball Courts
15 16 St. Patrick’s Day
Parade
Downtown
Impact Level III
17 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
18 19 RUHS Volleyball Matches
North Volleyball Courts
20 21 RUHS Volleyball Matches
North Volleyball Courts
22 Hearts of Hermosa
Community Center
(Set-up)
Impact Level III
23 Hearts of Hermosa
Community Center
Impact Level III
SCVA
Day at the Beach
North Volleyball Courts
24 Hearts of Hermosa
Community Center
(Tear-down)
Impact Level III
CBVA
North Volleyball Courts
25 26 RUHS Volleyball Matches
North Volleyball Courts
27 28 RUHS Volleyball Matches
North Volleyball Courts
29 30 SoCal Beach Foundation
North Volleyball Courts
31 Easter Sunrise Mass
South of Pier
794
April 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 2 RUHS Volleyball Matches
North Volleyball Courts
3 4 RUHS Volleyball Matches
North Volleyball Courts
5 6 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
7 8 9 RUHS Volleyball Matches
North Volleyball Courts
10 11 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
RUHS Volleyball Matches
North Volleyball Courts
12 Beach Tennis Tournaments
Beach Tennis Courts
13 CBVA
North Volleyball Courts
Beach Tennis Tournaments
Beach Tennis Courts
14 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
Beach Tennis Tournaments
Beach Tennis Courts
15 16 RUHS Volleyball Matches
North Volleyball Courts
17 18 RUHS Volleyball Matches
North Volleyball Courts
19 20 Sidewalk Sale
Hermosa Avenue, Pier Avenue & Pier Plaza
Impact Level II
State of the Art
Cypress Ave. & 6th St.
21 Sidewalk Sale
Hermosa Avenue, Pier Avenue
& Pier Plaza
Impact Level II
AAU Southern Pacific Grand
Prix Series
North Volleyball Courts
22 Rams Draft Experience
South of Pier
(Set-up)
(PENDING APPROVAL)
23 RUHS Volleyball Matches
North Volleyball Courts
Rams Draft Experience
South of Pier
(Set-up)
(PENDING APPROVAL)
24 Rams Draft Experience
South of Pier, Schumacher
Plaza, and Pier Plaza
(Set-up)
(PENDING APPROVAL)
25 RUHS Volleyball Matches
North Volleyball Courts
Rams Draft Experience
South of Pier, Schumacher
Plaza, and Pier Plaza
(PENDING APPROVAL)
26 Surfers Walk of Fame
Kick-off Party
Community Theatre
impact Level II
Rams Draft Experience
South of Pier, Schumacher
Plaza, and Pier Plaza
(PENDING APPROVAL)
27 Surfers Walk of Fame
Spyder Surf Fest
Pier Plaza
Impact Level III
Rams Draft Experience
South of Pier
(Event Infrastructure Only)
(PENDING APPROVAL)
28 Waterman’s Surf Series
South of Pier
Rams Draft Experience
South of Pier
(Event Infrastructure Only)
(PENDING APPROVAL)
29 RUHS Volleyball Matches
North Volleyball Courts
Rams Draft Experience
South of Pier
(PENDING APPROVAL)
30 Rams Draft Experience
South of Pier
(PENDING APPROVAL)
795
May 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 Rams Draft Experience
South of Pier
(PENDING APPROVAL)
2 Rams Draft Experience
South of Pier
(Tear-down)
(PENDING APPROVAL)
3 Rams Draft Experience
South of Pier
(Tear-down)
(PENDING APPROVAL)
4 Classic Car Show
Schumacher Plaza &
Pier Plaza
Impact Level II
Pets in the Park
Valley Park
Impact Level II
5 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
Your are Enough 5k
Schumacher Plaza & Strand
north of Pier
6 7 8 9 10 11 CBVA
North Volleyball Courts
Night at the Ballpark
Clark Field
Impact Level II
12 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
13 14 15 16 17 18 Epic Days
South of Pier
Impact Level II
AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
19 Epic Days
South of Pier
Impact Level II
20 21 22 23 Fiesta Hermosa
Downtown
(Set-up)
Impact Level III
24 Fiesta Hermosa
Downtown
(Set-up)
Impact Level III
CBVA
North Volleyball Courts
(Set-up)
25 Fiesta Hermosa
Downtown
Impact Level III
CBVA
North Volleyball Courts
Impact Level III
26 Fiesta Hermosa
Downtown
Impact Level III
CBVA
North Volleyball Courts
27 Fiesta Hermosa
Downtown
Impact Level III
CBVA
North Volleyball Courts
(Tear-down)
28 Fiesta Hermosa
Downtown
(Tear-down)
Impact Level III
29 30 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
31 Beach Tennis Tournaments
Beach Tennis Courts
796
June 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 SoCal
Beach Foundation
North Volleyball Courts
Beach Tennis Tournaments
Beach Tennis Courts
2 Beach Tennis Tournaments
Beach Tennis Courts
3 4 5 6 7 Fine Arts Festival
Community Center Lawn
(Set-up)
Impact Level III
8 Fine Arts Festival
Community Center Lawn
Impact Level III
South Bay Paddle
South of Pier
9 Fine Arts Festival
Community Center Lawn
Impact Level III
HBLL Closing Day
Clark Field
Impact Level II
10 11 12 13 14 SCVA
Day at the Beach
North Volleyball Courts
(Set-up)
15 SCVA
Day at the Beach
North Volleyball Courts
16 SoCal
Beach Foundation
North Volleyball Courts
17 U19 World Championship
and World University Trials
North Volleyball Courts
18 U19 World Championship
and World University Trials
North Volleyball Courts
19 U19 World Championship
and World University Trials
North Volleyball Courts
20 U19 World Championship
and World University Trials
North Volleyball Courts
21 22 Nothing Weekend
23 Nothing Weekend 24 25 26 27 28 29 Smackfest Co-ed 4’s Volleyball Tournament
North Volleyball Courts
30 SCVA
Day at the Beach
North Volleyball Courts
797
July 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 JVA/BVCA
National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up)
Impact Level III
7 JVA/BVCA
National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
8 JVA/BVCA
National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
9 JVA/BVCA
National Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
10 JVA/BVCA
National Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
Shakespeare by the Sea
Valley Park
Impact Level I
11 JVA/BVCA
National Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
Shakespeare by the Sea
Valley Park
Impact Level I
12 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up)
Impact Level III
13 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
14 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
15 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
16 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
17 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
18 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
19 AAU
Junior National
Championships
North & South
Volleyball Courts &
Beach Tennis Courts
Impact Level III
20 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
21 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
22 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
23 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
24 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
25 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
26 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
27 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
28 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
Impact Level III
29 AVP– Junior Event
North & South
Volleyball Courts &
Beach Tennis Courts
(Set-up, Event or
Tear-down - TBD)
30 31 International
Surf Festival
North & South of Pier
(Set-up)
Impact Level III

798
August 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 International
Surf Festival
North & South of Pier
(Set-up)
Impact Level III
2 International
Surf Festival
North & South of Pier
Impact Level III
3 International
Surf Festival
North & South of Pier &
North Volleyball Courts (CBVA)
Impact Level III
Sidewalk Sale
Hermosa Avenue,
Pier Avenue & Pier Plaza
4 International
Surf Festival & CBVA
North & South of Pier
Impact Level III
Sidewalk Sale
Hermosa Avenue,
5 International
Surf Festival
North & South of Pier
(Tear-down)
Impact Level III
6 7 8 9 Triathlon
Downtown
(Set-up)
Impact Level III
10 Triathlon
Downtown
(Set-up)
Impact Level III
11 Triathlon
Downtown
Impact Level III
CBVA
North Volleyball Courts
12 13 14 15 16 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
17 Epic Days
South of Pier
Impact Level II
Beach Tennis Tournaments
Beach Tennis Courts
18 Epic Days
South of Pier
Impact Level II
Beach Tennis Tournaments
Beach Tennis Courts
19 20 21 22 23 24 Nothing Weekend
25 Nothing Weekend 26 27 28 29 30 CBVA
North Volleyball Courts
(Set-up)
31 CBVA
North Volleyball Courts
799
Sun Mon Tue Wed Thu Fri Sat
1 CBVA
North Volleyball Courts
2 3 4 5 6 Hermosa Beach
Concert Series
South of Pier
(Set-up)
Impact Level III
7 Movies at the Beach
South of Pier
Impact Level III
(PENDING APPROVAL)
8 Hermosa Beach
Concert Series
South of Pier
Impact Level III
9 Hermosa Beach
Concert Series
South of Pier
(Event Infrastructure Only)
Impact Level III
10 Hermosa Beach
Concert Series
South of Pier
(Event Infrastructure Only)
Impact Level III
11 Hermosa Beach
Concert Series
South of Pier
(Event Infrastructure Only)
Impact Level III
12 Hermosa Beach
Concert Series
South of Pier
(Event Infrastructure Only)
Impact Level III
13 Hermosa Beach
Concert Series
South of Pier
(Event Infrastructure Only)
Impact Level III
14 Movies at the Beach
South of Pier
Impact Level III
(PENDING APPROVAL)
15 Hermosa Beach
Concert Series
South of Pier
Impact Level III
16 Hermosa Beach
Concert Series
South of Pier
(Tear-down)
Impact Level III
17 18 19 20 21 Coastal Cleanup Day
Schumacher Plaza,
North & South of Pier
Impact Level I
Glow Ride
for Cystic Fibrosis
Schumacher Plaza &
Strand north of Pier
22 23 24 25 26 27 28 Locale 90254
Hermosa Avenue, & Lot A
Impact Level III
(TENTATIVE)
AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
29 Locale 90254
Hermosa Avenue, & Lot A
Impact Level III
(TENTATIVE)
30 September 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
800
October 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
5 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
Beach Tennis Tournaments
Beach Tennis Courts
6 Beach Tennis Tournaments
Beach Tennis Courts
7 8 9 10 11 12 Walk to End Alzheimer's
Schumacher Plaza and Strand
north of PIer
13 14 15 16 17 18 19
Pumpkins in the Park
Edith Rodaway Park
Impact Level II
VOLLEY4SOUND
North Volleyball Courts
20 Skechers Pier to Pier
Friendship Walk
Schumacher Plaza and
Strand north of PIer
Impact Level III
21 22 23 24 25 Beach Tennis Tournaments
Beach Tennis Courts
(Set-up)
26 Beach Tennis Tournaments
Beach Tennis Courts
AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
27 Beach Tennis Tournaments
Beach Tennis Courts
28 29 30 31
801
Sun Mon Tue Wed Thu Fri Sat
1 2 Sandy Sauté
North of Pier
3 4 5 6 7 8 9
10 11 Veterans Day
Wreath Laying
Ceremony
Community Center
East Lawn
Impact Level II
12 13 14 15 16
17 18 19 20 21 22 Hermosa for the
Holidays
Downtown
(Set-up)
Impact Level III
23 Hermosa for the
Holidays
Downtown
Impact Level III
AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
24 Hermosa for the
Holidays
Downtown
Impact Level III
25 26 27 28 29 30
November 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
802
December 2024
Impact Level I
Impact Level II
Impact Level III
Long-term Agreement
City Hosted Event
City Contracted Event
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7 Sand Snowman
Contest
North of Pier
Impact Level I
8 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
9 10 11 12 13 14 California Great
Santa Stroll
Strand North of Pier & Pier
Plaza
Impact Level III
15 16 17 18 19 20 21
22 23 24 25 26 AAU Southern Pacific
Grand Prix Series
North Volleyball Courts
27 28
29 Community
Chanukah Celebration
Pier Plaza &
Greenwood Park*
Impact Level II
30 31
*Menorah installation at Greenwood Park is Monday, December 23 2024, and the Menorah is removed Friday, January 3, 2025 803
Off-Season Monthly Events
(Labor Day – Memorial Day) # of Special Event Days # of Days Available(out of 15) January 6 9
February 4 11
March 18 -3
April 21 -6
May (through May 26) 13 2
September (from September 3) 14 1
October 9 6
November 5 10
December 5 10
Peak Season (Memorial Day: May 27, 2024– Labor Day: September 2, 2024) # of Special Event Days on the Beach/Strand/Pier Plaza Level I & II Event Days
(not on Level III Event Days)
& City Sponsored/Contracted
(not on Level III, II or I Event Days)
(Maximum of 25)
Level III Event Days
(Maximum of 45)
Total # of Event Days
(out of 70 total)
17 38 54
Peak Season Event Limits:

To balance coastal access with events, events on the Beach, Strand & Pier Plaza will be limited to the following number of events during the peak summer season (Memorial Day to Labor Day – approximately 100 days over the summer):
o Maximum of 45 days used by Level III Events
o Maximum of 25 days used by Level I & II Events, & City Sponsored/Contracted Events (on days not used by Level III Events) City Sponsored or City Contracted Events, & Long-term Agreement Events are categorized by their Impact Level 804
City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 02-27-24 17:00
Agenda Name Comments Support Oppose Neutral
a) REPORT 24-0071 CONSIDERATION OF APPROVAL OF A NEW

IMPACT LEVEL III SPECIAL EVENT
(Community Resources Manager Lisa Nichols)
22 20 2 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown.

Overall Sentiment
Agenda Item: eComments for a) REPORT 24-0071 CONSIDERATION OF APPROVAL OF A NEW IMPACT LEVEL III SPECIAL EVENT
(Community Resources Manager Lisa Nichols)
Overall Sentiment
Cammie Herbert
Location:

Submitted At: 2:55pm 02-27-24
What fun for all ages!! Hb has always supported sports!! so let’s continue our pro sports events with some love for the Rams!
Stephen McCall
Location:

Submitted At: 2:34pm 02-27-24
Brilliant opportunity for the City to shine, businesses to benefit, and the community to enjoy being the Best Little Beach City.

TJ Powers
805
Location: 90254, Hermosa Beach
Submitted At: 1:57pm 02-27-24
Support 100%
Kaci McCrossen
Location: 90254, Hermosa Beach
Submitted At: 1:56pm 02-27-24
This would be amazing for our town to host the Rams for the draft! It will bring rams fans to watch and eat at our local restaurants! It’s a win win for the rams and hermosa beach restaurants! Catherine Vernon
Location: 90254, Hermosa beach
Submitted At: 1:54pm 02-27-24
Our community desperately needs a shot in the arm for our small businesses. A Rams draft day event would be exactly what we need to revitalize our downtown. I support this 100%.

Tara McNamaraStabile
Location: 90254
Submitted At: 1:33pm 02-27-24
Absolute YES on approving a new impact Level III Special Event for Rams Draft Day! Just from the awesome factor, the community excitement and pride for Hermosa Beach residents and Rams fans is off the charts -- this is a memory making opportunity for all of us! Second, this is the toughest time of the year for Hermosa Beach businesses. This incredible special event would be the juice to help our businesses survive this rough patch -- and bring attention to the fact that many of our restaurants have NFL games on every day during the season and creates a fun way to watch the game as neighbors! Finally, the national exposure to the Best Little Beach City is the kind of PR tourism departments dream of -- there's no telling the potential, positive future impact. And, again -- this is COOL, which is totally on-brand for Hermosa:) Thank you all!
Laura Pena
Location:

Submitted At: 10:48am 02-27-24
Dear Mayor, Council Members, Staff – I support our city approving the inclusion of a new impact Level III Special Event, the Rams Draft experience in April 2024. Our city has a unique opportunity to highlight the many special features of our beach city on the national stage while supporting our local businesses, providing opportunities for our non-profits, increasing resident engagement, all while promoting tourism. As part of our adopted Economic Development Strategies, we have an opportunity to realize #13 - Introduce and Facilitate our Downtown with special and unique experiences. I cannot think of a better way to accomplish this objective then allowing the LA Rams to highlight our communities passion for healthy and active lifestyles in our beautiful city with a first round draft pick in a 6.9 billion dollar franchise.

I appreciate your thoughtful consideration.

Laura Pena
Josh Royal
Location:

Submitted At: 3:26pm 02-26-24
Dear City Council,
It has been a tough winter and this would be amazing to reignite some business into the downtown area during a normally slow time. Thank you for your consideration.

Josh Royal
The Lighthouse Cafe
Paul Lassen
806
Location:

Submitted At: 2:46pm 02-26-24
The Rams Suck. Just say NO.

Jenna Record
Location:

Submitted At: 9:39am 02-26-24
Hello, I am Jenna Record from The Brews Hall on the pier. We fully support Draft Day LIVE happening in Hermosa. It would be wonderful help to our business community get some exposure and promote our establishments as a great spot to watch the games.

Dawn Dafgek
Location: 90254, Hermosa Beach
Submitted At: 8:21am 02-26-24
I think this will be great for businesses
Paul Giza
Location: 90254, Hermosa Beach
Submitted At: 7:59am 02-26-24
Looks and sounds like a great idea! I e lived in Hermosa for 5 years and 100% would love to see this happen Rich Alexander
Location:

Submitted At: 10:19pm 02-24-24
What a great opportunity. Special events like these are valuable tools for driving our local, small business economy!
Greg Newman
Location: 90254, Hermosa Beach
Submitted At: 12:44pm 02-24-24
Dear Mayor and City Council,
Greg Newman here, Palmilla, Tower 12 and Sharkeez, 55 year resident and downtown homeowner; (53 9th street). This LA Rams Draft Day experience that Jessica is putting together is exactly what we need to get through these challenging winter months. 2024 so far has been the slowest most challenging year we have had in Hermosa Beach in 27 years of being in business. Our downtown is in my opinion one if not the Gem of coastal Southern California when it comes to a place for locals and tourists alike to visit, shop, eat and play. We have an opportunity to rebuild our downtown economy and truly make this the best place for people to come and enjoy the quintessential California beach experience but we can’t do it unless we work together! This is a great opportunity to do just that. Thank You.

Susan Moore
Location: 90254, Hermosa Beach
Submitted At: 6:25am 02-24-24
I support having the Rams Draft Day in Hermosa. It’s a great opportunity to bring people to our city and foot traffic to our local businesses.

Darren Eichhorn
Location:

Submitted At: 7:18pm 02-23-24
Anything that brings more people to the beach the better. I would imagine if one could afford to travel for the draft they will also be great customers to our restaurants and businesses.

Marilyn WeeSit
Location: 90254, Hermosa Beach
Submitted At: 7:09pm 02-23-24
807
I would love to see the draft held here! What a fantastic opportunity for our city! Jessica Accamando
Location:

Submitted At: 5:14pm 02-23-24
Dear Mayor and City Council,
We seek your support of the LA Rams Draft Day Experience, proposed for April 2024. The event promises to be an exciting opportunity for our community, and its success could mean several days of wonderful foot traffic in Hermosa Beach during a month where many folks leave town.

We are acutely aware of the positive impact that events like the LA Rams Draft Day Experience can have on our local economy. The infusion of visitors and residents to our city not only enhances the vibrancy of our community but also significantly boosts foot traffic on weekdays, providing a welcome economic stimulus for local businesses.

Hosting an event of this caliber aligns perfectly with our collective vision for Hermosa Beach as a dynamic and thriving destination. The LA Rams Draft Day Experience is anticipated to draw a diverse audience, creating a unique opportunity for local businesses to showcase their products and services to a broader market. This exposure is invaluable and can contribute to the sustained growth of our local economy.

This Experience will contribute to the overall community spirit, fostering a sense of pride and unity among our residents (especially those football fans!). The excitement generated by such events can have a lasting positive impact on the image of Hermosa Beach and help attract future opportunities for both business and community development.

We kindly request that you support this event. The collaboration between the City, Chamber, and the LA Rams will undoubtedly create an unforgettable experience for our community and visitors alike.

Jessica Accamando
Hermosa Beach Chamber of Commerce
gina rothwell
Location: 90254, hermosa beach
Submitted At: 3:49pm 02-23-24
Sol Baby is in full support of the Rams Draft Day Experience! Sounds like a really cool, unique event that seems sure to help local businesses!
Robert Mahler
Location: 90254, hermosa beach
Submitted At: 3:15pm 02-23-24
The winter season has been tough the past few years. Capri Gelato & Coffee Bar is in full support of bringing in more foot traffic to get our name out there.

Dana Ireland
Location: 90254, Hermosa Beach
Submitted At: 3:07pm 02-23-24
It’s been a very challenging winter season for the past couple of years Rain is never our business allie We support but respectfully request that the Restaurants not on the plaza are able to be promoted to the visitors. The Cities basic plan of running all events on the plaza HURTS us places that reside directly off the plaza .

Marina Boulanger
Location: 90254-3734, HERMOSA BEACH
Submitted At: 2:28pm 02-23-24
Sea Sprite Hotel is in support of the RAMS Draft Experience Proposal B. The extended experience with the field South of the pier will allow visitor to stay longer throughout the week, eating, shopping, having fun to help ALL 808
businesses extended throughout the city. Tourism and foot traffic are down this winter season, an event like this can help our businesses. After attending the Parks & Recreation meeting, the RAMS team seem genuine and capable of abiding by all city guidelines and have a common goal of helping Hermosa Beach. 809
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 24-0058
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 27, 2024

REJECT ALL BIDS AND AUTHORIZE THE RE-ADVERTISEMENT
OF CIP 689 CLARK BUILDING RENOVATIONS
(Public Works Director Joe SanClemente)
Recommended Action:

Staff recommends City Council:

1. Reject all bids for CIP 689 Clark Building Renovations;

2. Direct staff to work with the project design team and Council appointed subcommittees to evaluate options to reduce project scope and cost, and refine the project design, subject to Council approval prior to re-advertisement; and

3. Direct staff to re-open the Clark Building on an interim, limited use basis subject to completion of the sewer line replacement and other necessary minor maintenance items.

Executive Summary:

The FY 2023-2024 Capital Improvement Program (CIP) includes CIP 689 Clark Building Renovations to fully renovate the Clark Building and construct site improvements. After receiving and reviewing the project bids, staff recommends City Council reject all bids and authorize staff to advance opening the Clark Building on an interim, limited use basis; and to revisit and update the project scope and design to reduce project costs, through coordination with the Council appointed subcommittees.

Once completed, staff would seek approval from City Council prior to re-advertising the project.

Background:

The scope of work for CIP 689 Clark Building Renovations was developed through a comprehensive community engagement process that included surveys, virtual forums, and comments at public meetings of the Parks, Recreation and Community Resources Advisory Commission, Public Works Commission, and City Council. A subcommittee of members of both Commissions was assembled to provide input on this project. All who participated provided valuable feedback regarding desired amenities, with the addition of an updated kitchen, air conditioning, and an audio-visual system as top priorities.

Staff and the project architect presented the preliminary building design to City Council at its January 25, 2022 meeting. However, design modifications were subsequently required to bring the building’s kitchen to commercial standards per the requirements of the Los Angeles County Department of City of Hermosa Beach Page 1 of 6 Printed on 3/19/2024
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REPORT 24-0058
kitchen to commercial standards per the requirements of the Los Angeles County Department of Public Health. Since that time, staff actively worked to advance and complete the final architectural plans and design of the engineering components, including, but not limited to the commercial kitchen, electrical upgrades, site accessibility improvements, the audio-visual system, HVAC components, and the flooring system. Final design approvals were obtained from the Public Health Department and the City’s Building and Safety and Planning Divisions in fall of 2023.

The full scope of the designed project includes the following improvements:
· New commercial kitchen per current Los Angeles County Department of Public Health requirements, including new appliances, fixtures, storage cabinets, counter tops, flooring, grease trap system, and lighting;
· New electric powered heating, ventilation, and air conditioning (HVAC) system; · New audio-visual system including built-in speakers, overhead projector, and roll-down projection screen;
· Architectural upgrades including:
o Furred out walls to hide system components such as electrical conduit and provide a new smooth wall surface throughout;
o New decorative accents on the ceiling;
o Acoustic ceiling panels for sound absorption;
o New commercial grade vinyl flooring;
o New interior and exterior light fixtures;
o Complete interior and exterior cleaning and painting; and o Restored original signage on the exterior of the building; · New sewer lateral and connection;
· New plumbing system to accommodate the updated restrooms and commercial kitchen, including new floor drains for ease in maintenance.
· Site improvements including new concrete walkways and ramps to current accessibility standards, decorative enclosures around the refuse storage area and HVAC units, new accessible entrance to the Lawn Bowling Club, and refreshed landscaping and irrigation. · Completely renovated restrooms to current accessibility standards, including new fixtures, partitions, vanities, mirrors, flooring, and lighting; · New electrical system including wiring and upgraded service connection necessary to serve the enhanced building components;
· Asbestos and lead abatement work throughout the building; and · Necessary demolition work associated with the renovation.

The installation of solar panels, and back-up batteries, were also identified as a scope item during the outreach process and was not included in the final design package, as staff was working with the City of Hermosa Beach Page 2 of 6 Printed on 3/19/2024
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REPORT 24-0058
Clean Power Alliance (CPA) on potentially securing separate funding for this work.

Past Council Actions
Meeting Date Description
January 25, 2022 City Council received a presentation of preliminary building design from City staff and the project architect.

September 26, 2023 City Council adopted new purchasing methods in accordance with the Uniform Public Construction Cost
Accounting Act (UPCCAA).

Analysis:

On November 16, 2023, the City issued Notice Inviting Bids 23-009 inviting experienced and highly qualified construction teams to submit a bid for construction of the project through a competitive process. The notice was advertised in the Easy Reader, on the City’s website, and on the City’s online bidding platform, PlanetBids. During the advertisement period, 56 prospective bidders downloaded the project documents from PlanetBids, inclusive of general contractors and subcontractors. Staff also held a mandatory pre-bid site walk on December 6, 2023 that was attended by 20 participants.

On December 21, 2023, the City received a total of five bids, which were opened and read aloud by the Deputy City Clerk. The bid results are provided in Attachment 1 and summarized below in the order the bids were received. The engineer’s construction estimate prepared by the City’s architectural design team was $1,550,000.

Bid Result Summary

BIDDER BASE BID
AMOUNT
ALTERNATE BID.

ITEMS

TOTAL BID
PUB Construction, Inc. $2,843,000 $59,490 $2,902,490
Armstrong Cal Builders, Inc. $2,496,000 $67,750 $2,563,750 Caltec Corp. $2,930,000 $136,300 $3,066,300
Modern General Contractor,
Inc.
$2,937,000 $60,000 $2,997,000
SS+K Construction, Inc. $2,485,000 $93,000 $2,578,000
All five bids were significantly higher than the engineer’s construction estimate of $1,550,000 prepared by the City’s architectural design team. As a substantial portion of the final design was completed in the past 6 to 12 months leading up to project advertisement, the design team anticipated that actual costs could be higher given the uncertainty in pricing due to significant inflationary increases in building construction costs experienced over the past two to three years. The project cost estimate was updated prior to advertisement based on the current final design of the project and readily available cost data at the time. Staff worked to finalize the bid package and City of Hermosa Beach Page 3 of 6 Printed on 3/19/2024
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REPORT 24-0058
project and readily available cost data at the time. Staff worked to finalize the bid package and advertise the long-anticipated project as quickly as possible to determine true market pricing which has yielded a cost substantially higher than that anticipated by the City's design team.

Staff reviewed the bid documents provided by all bidders and concluded, based on bid pricing significantly above the engineer’s estimate, that the City would be better served by rejecting all bids.

Staff reviewed the bid documents provided by all bidders and concluded, based on bid pricing significantly above the engineer’s estimate, that the City would be better served by rejecting all bids.

Given the number of bids received on the project, and fairly narrow cost range amongst all bids, staff does not anticipate that re-advertising the project as currently scoped and designed would necessarily yield a lower construction bid.

Staff conducted a detailed bid analysis with the City’s architectural design team and the City’s on-call building construction engineers, and anticipates there may be some limited opportunities for small cost savings through value engineering installation methods and materials. There may also be opportunity to advance certain items separately to reduce markup (e.g. purchase furniture directly from vendor through cooperative purchase agreements, advance abatement in advance of full construction through separate contractor, etc.), while still maintaining the overall functionality desired by the community and maximizing revenue for the City following project completion. This effort would require re-engaging the design team to fully identify all options and revise the project design plans and specifications accordingly and could take approximately three to four months to complete before re-advertising the project, which is still anticipated to require additional funding beyond that currently budgeted in the CIP. During this process, staff would evaluate budget projections through the upcoming FY 2023-2024 budget process, to determine if there are additional funds available or if would require reprioritizing funding in the current CIP.

Larger revisions to the project scope for greater cost savings may be possible, but would require more extensive design changes. Larger revisions may require removing key elements identified during the public outreach process and potentially need updated approvals from the Los Angeles County Department of Public Health. These larger changes require more detailed involvement by the project design team to understand the cost and design implications of altering or removing larger scope elements, and the associated input from the subcommittees and Council, which are anticipated to take approximately six to nine months to complete before the project would be ready to re-advertise.

Since February 2022, the Public Works Operations and Maintenance team fulfilled 35 work orders to set up the Clark Building for various, primarily municipal, uses. There have been other uses of the facility since that time that did not require staff support for setup. Staff re-evaluated the necessary work to complete an interim general re-opening of the Clark Building, so that the community can City of Hermosa Beach Page 4 of 6 Printed on 3/19/2024
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work to complete an interim general re-opening of the Clark Building, so that the community can enjoy the limited use of the existing building given the additional time to consider and update the larger project renovation plans. One of the critical items that would need to be addressed to facilitate an interim general re-opening is the replacement of the existing sewer lateral, which has been an ongoing maintenance issue and area of concern with outside use of the building. Under the City’s modernized construction procurement requirements through the Uniform Public Construction Cost Accounting Act (UPCCAA) adopted by Council at its September 26, 2023 meeting, with ordinance effective as of October 26, 2023, staff can now expeditiously retain a contractor to complete the sewer work separately from the larger project. Previously, this effort would have followed the traditional, and more time-consuming, procurement process involving preparation of plans and specifications, public advertisement and bidding, and formal contract award.

Replacement of the sewer line would help address the issues; however, would not fully resolve the concerns as all existing internal drain lines need replacement and cannot be addressed separately from the full renovation. As a result, the interim use of the building would still be limited to small classes or other lower impact rental use. Additionally, staff would need to advance other minor, lowcost maintenance improvements to allow the basic functioning of the building, including servicing and cleaning of the heating system, patching holes in the wall and floor, interior painting of the ballroom and the restroom, and painting of the restroom floor.

Staff anticipates that the interim re-opening could be completed within approximately two months following Council approval and would also advance one of the critical elements of the project (sewer line replacement) on an earlier timeline while the design is revised. These temporary improvements would not re-open the kitchen and are not a substitute for a more comprehensive renovation, that at a minimum would need to include accessibility upgrades at the facility in accordance with current accessibility requirements for renovations and consistent with the City’s ADA Transition Plan.

While these interim improvements and design updates advance, staff recommends re-engaging the Council appointed subcommittees for input on the major scope elements of the project. During this period, as part of the upcoming FY 2024-25 budget cycle, staff would also re-evaluate the availability of funding in relation to other current and anticipated project funding needs in the CIP.

General Plan Consistency:

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

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

Policies:
· 1.1 Open meetings. Maintain the community’s trust by holding meetings in which decision being made, that are open and available for all community members to attend, participate, or City of Hermosa Beach Page 5 of 6 Printed on 3/19/2024
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being made, that are open and available for all community members to attend, participate, or view remotely.
· 1.6 Long-term considerations . Prioritize decisions that provide long-term community benefit and discourage decisions that provide short-term community benefit but reduce long-term opportunities.

Fiscal Impact:

The estimated cost of the work required for an interim re-opening of the Clark Building is anticipated to be less than $60,000 using the current available CIP 689 budget. This would include utilizing contractors to replace the sewer line, service the HVAC system, and use City maintenance crews to perform limited patching and painting of the interior.

The current available CIP 689 budget would also be used to evaluate and update design changes for the Clark Building.

Attachments:

1. Bid Summary Log

2. Link to January 25, 2022 City Council Meeting

3. Link to September 26, 2023 City Council Meeting
Respectfully Submitted by: Stephanie Holst, Senior Engineer Concur: Lucho Rodriguez, City Engineer
Concur: Joe SanClemente, Public Works Director
Concur: Lisa Nichols, Community Resources Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 6 of 6 Printed on 3/19/2024
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816
City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 02-27-24 17:00
Agenda Name Comments Support Oppose Neutral
a) REPORT 24-0058 REJECT ALL BIDS AND AUTHORIZE THE READVERTISEMENT OF CIP 689 CLARK BUILDING RENOVATIONS
(Public Works Director Joe SanClemente)
1 1 0 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown.

Overall Sentiment
Agenda Item: eComments for a) REPORT 24-0058 REJECT ALL BIDS AND AUTHORIZE THE RE-ADVERTISEMENT OF CIP 689 CLARK BUILDING RENOVATIONS
(Public Works Director Joe SanClemente)
Overall Sentiment
Todd Tullis
Location:

Submitted At: 10:05pm 02-26-24
Based on the cost of the bids received, agree with recommendation to scale down expectations for remodeling this building.
817

REJECT ALL BIDS AND AUTHORIZE

THE RE-ADVERTISEMENT
OF CIP 689 CLARK BUILDING

RENOVATIONS
February 27, 2024
818
Overview
Full renovation of building
and site improvements.

Major components include: • New sewer line and plumbing • Renovated restrooms • New commercial kitchen • New HVAC system • New audio-visual system • Renovated interior ballroom • ADA accessibility upgrades 819
Timeline
Jan 25, 2022
Presentation of
preliminary
design to Council
Fall 2023
Design approval by LA
County Dept. of Public
Health and HB Building
and Safety / Planning
Design modifications – commercial
kitchen, electrical, site improvements, AV
system, HVAC, flooring
Nov 16, 2023
Project advertised
for bids
Dec 21, 2023
Project bid
opening
820
Bids Received
Bidder Base Bid
Amount
Alternate
Bid Item
Total Bid

1. Pub Construction, Inc $ 2,843,000 $59,490 $2,902,490

2. Armstrong Cal Builders,
Inc
$ 2,496,000 $67,750 $2,563,750

3. Caltec Corp. $ 2,930,000 $136,300 $3,066,300

4. Modern General
Contractor, Inc
$ 2,937,000 $60,000 $2,997,000

5. SS+K Construction, Inc $ 2,485,000 $93,000 $2,578,000 821
Analysis
 Bids higher than architect’s
estimate
 Staff recommends rejecting all
bids
822
Next Steps
 No guarantee of lower
price upon readvertisement
of same documents
 Staff identifying
opportunities for value
engineering
 Possible scope
modifications
 Possible reengagement of
subcommittees
 Potential interim re-opening
823
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 24-0060
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 27, 2024
MIDYEAR BUDGET REVIEW 2023-24
(Finance Director Viki Copeland)
Recommended Action:

Staff recommends City Council:

1. Approve the revisions to estimated revenue, appropriations, budget transfers, and fund balances as shown herein and in the attached Revenue Detail Report, Additional Appropriations Report, Budget Transfers Report, and Budget Summary Report (Attachments 1, 2, 3, and 4);

2. Approve the following transactions from the General Fund:
a) Transfer $137,905 of unspent funds from 2023-24 Midyear to the assigned fund balance for Contingencies in order to maintain the City’s target of 20 percent of appropriations for this fund (Attachment 3);
b) Transfer $6,374 of unspent funds from 2022-23 to the Lighting/Landscaping District Fund to cover the deficit balance;
c) Transfer $1,419,308 of unspent funds from 2022-23 to the Insurance Fund to bring the fund up to the funding goal of $3 million;
d) Transfer $198,866 of unspent funds from 2022-23 to the Equipment Replacement Fund;
e) Transfer $1,076,441 of unspent funds from 2022-23 for use in the Capital Improvement Fund; and
f) Transfer $729,769 of unspent funds from the Midyear Budget Review 2023-24 from the unassigned fund balance category to the assigned fund balance category.

3. Receive and file the City Council Travel Summary (Attachment 6).

Executive Summary:

With an estimated revenue increase of one percent or $541,971, overall reduction of expenditures requested at midyear of $183,430, and changes in the General Fund balance for restricted General Plan Maintenance Fees, Public Educational and Government (PEG) Grant, and Certified Access Specialist (CASp) fees, funds of $867,674 are available to cover an increase to the Contingency (Rainy Day Fund) of $137,905, leaving a remaining balance of $729,769 in the General Fund. Staff also recommends transferring the 2022-23 unspent funds to clear the Lighting/Landscape District City of Hermosa Beach Page 1 of 14 Printed on 3/19/2024 powered by Legistar™824
Staff Report
REPORT 24-0060
also recommends transferring the 2022-23 unspent funds to clear the Lighting/Landscape District Fund deficit, bring the Insurance Fund and Equipment Replacement Fund up to the funding goals, and replenish the Capital Improvement Fund.

Background:

The City has conducted an annual Midyear Budget Review since fiscal year 1981-82. The review is a tool to ensure that assumptions and estimates originally used to prepare the budget ten months earlier remain realistic. All revisions would be recorded as of January 31, 2024 so that midyear revisions for revenue and appropriations would reflect in the 2023-24 Budget worksheets used for preparation of the 2024-25 Budget.

The City Council Conference/Travel Summary was requested by City Council in 2014-15 and continues to be provided as an information item (Attachment 6).

Analysis:

OVERVIEW
The Midyear Budget Review estimates an increase in revenue of one percent or $541,971. The appropriation requests for the General Fund result in an overall reduction in appropriations of $183,430. Staff recommends adjusting the City’s Contingency (Rainy Day Fund) to the goal of 20 percent of appropriations for operations by adding $137,905. Staff recommends leaving remaining unspent funds of $729,769 from the 2023-24 Midyear Budget in the General Fund for potential use in the 2024-25 Budget. Due to the use of American Rescue Plan Act (ARPA) funds to balance the previous three annual budgets, staff recommends reserving the funds in the General Fund. Once the 2024-25 Budget estimates are reviewed, recommendations would be made regarding the midyear 2023-24 unspent funds. Use of these funds will be determined in conjunction with the 2024-25 budget requests.

Staff recommends that the $2,700,989 in unspent funds from 2022-23 be used as follows:
· Transfer $6,374 to the Lighting/Landscaping Fund to clear the deficit; · Transfer $1,419,308 to the Insurance Fund to meet the funding goal of $3,000,000; · Transfer $198,866 to the Equipment Replacement Goal to meet the funding goal of $3,559,204; and
· Transfer the remaining 2022-23 unspent funds of $1,076,441 to the Capital Improvement Fund to replenish the balance.

REVENUE
(Refer to Attachment 1, Midyear Revenue Detail Report, for individual revenue accounts.) Revenue is estimated to increase one percent over the 2023-24 Budget estimate. The following table shows revenue by category and the following graphs show trends for the largest tax revenue City of Hermosa Beach Page 2 of 14 Printed on 3/19/2024 powered by Legistar™825
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shows revenue by category and the following graphs show trends for the largest tax revenue sources:
2023-24 2023-24 Increase %
General Fund Revised Budget Midyear Revision (Decrease) Change Property Taxes 23,991,897 24,487,850 495,953 2.1%
Sales Taxes 3,858,624 3,858,624 0 0.0%
Utility User's Tax 2,577,840 2,782,472 204,632 7.9%
Transient Occupancy Tax 5,168,328 5,168,328 0 0.0%
Other Taxes 2,705,126 2,823,402 118,276 4.4%
Licenses and Permits 1,238,386 765,742 (472,644) -38.2% Fines & Forfeitures 1,747,450 1,621,950 (125,500) -7.2% Use of Money & Property 1,381,583 1,480,603 99,020 7.2% Intergovernmental/State 106,199 220,738 114,539 107.9%
Current Service Charges 9,274,197 9,293,427 19,230 0.2% Other Revenue 68,621 157,086 88,465 128.9%
Total 52,118,251 52,660,222 541,971 1.0%
2023-24 Midyear Revenue by Category
TAXES
Property Tax
The estimate for overall property tax revenue is increased by 2.1 percent. The midyear estimate for the secured portion of the property tax or “real property,” which is land and personal property located upon that property of the same owner, is 0.9 percent over the original estimate or eight percent over FY 2022-23. The new estimate is $19,508,335. Growth for the prior four years was six percent, five percent, seven percent, and six percent, respectively.

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Sales Tax
The sales tax revenue estimate is unchanged at Midyear. The original estimate is an increase of three percent over the prior year.

The following chart compares sales tax on major accounts for only the first quarter of this year to the first quarter of last year for the top ten business classes and by geographic area. Detailed information on sales tax is only available for the first quarter due to the one quarter lag in information from the State.

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Sales tax for the most recent quarter, which is July-September 2023 is 0.8 percent higher than the same quarter last year.

As shown in the chart on the following page, the category with the highest sales tax overall continues to be Eating/Drinking Places, which grew by 0.32 percent over 2022-23, followed by the County/State Pool, which grew by 14.9 percent. This category reflects internet sales from shopping remotely. The Auto Dealers & Supplies category had the highest dollar increase at $27,027.

Comparison of Sales Tax by Class FY
First Quarter (Q1) 2022-23 vs. 2023-24
2022-23 % OF

FIRST QTR TOTAL
Retail Group
Eating/Drinking Places 333,475 334,552 $1,077 0.32% 34.74% Building Materials 80,621 71,234 ($9,387) -11.64% 7.40% Other Retail 79,536 64,714 ($14,822) -18.64% 6.72%
Food Stores 62,635 64,405 $1,770 2.83% 6.69%
Auto Dealers & Supplies 34,772 61,799 $27,027 77.73% 6.42% Service Stations 44,626
Drug Stores 22,816
All Other Retail 22,603 19,330 ($3,273) -14.48% 2.01%
Furniture/Appliance 19,694 16,683 ($3,011) -15.29% 1.73% Apparel Stores 16,007 16,028 $21 0.13% 1.66%
Total Retail Group 716,785 709,787 ($6,998) -0.98% 73.71% Total Business, Service, 56,483 52,042 ($4,441) -7.86% 5.40% Repair
Total Manufacturing 28,470 24,338 ($4,132) -14.51% 2.53% & Wholesale
Total Non-Store/Part Time 235 1,036 $801 340.85% 0.11%
Retailers/Adjustments
County/State Pool 152,900 175,685 $22,785 14.90% 18.25% * Threshold for inclusion, $300 per quarter
-- CONFIDENTIAL --
CONFIDENTIAL: Business class sales tax information is deemed confidential if there are four or less businesses in a class or if a single class member's share is a disproportionate percentage of the total. -- CONFIDENTIAL --
RANK / BUSINESS CLASS* 2023-24 INC/(DEC) % CHANGE

SALES TAX PREVIOUS YEAR
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Sales Tax Comparison by Geographic Area
Revenue % of % Revenue % OF
LOCATION 2022-23 Total Change 2023-24 Total
Downtown $ 424,392 48% -9% $ 386,692 44%
PCH 313,701 35% 4% 326,796 37%
Pier/Valley/Monterey 122,356 14% 11% 136,165 16%
Aviation 28,404 3% -11% 25,399 3%
Transient Occupancy Tax
Transient Occupancy Tax (TOT) receipts for the first half (through November) are consistent with the original budget, therefore no change is recommended. Receipts for the prior year were higher than expected at $5,151,135. Occupancy for hotels is 78.6 percent for the first half of this year vs. 78.1 percent for last year. Short Term Vacation Rentals (STVR) occupancy for the same period is 72.4 percent this year vs. 81.5 percent last year.

In November 2019, the voters passed Measure H which increased the Transient Occupancy Tax from 12 percent to 14 percent, effective January 1, 2020. A new hotel and two short-term vacation rental properties with a total of 10 rental units have been added this fiscal year.

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Utility User Tax
The estimate for Utility User Tax (UUT) revenue is increased by 7.9 percent from the original budget and an increase of 0.7 percent over 2022-23 revenue. Revenue for the first half is up 1.9 percent.

The largest increases for the first half are in electric and phone services at 11 percent and five percent, respectively. The pie chart depicts the UUT by type.

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Other Tax
The 4.4 percent increase in the Other Tax category is primarily due to an increase in refuse franchise fees, which are up 40 percent for the first half of the year, as a result of a rate increase and a seven percent increase in business licenses.

Licenses and Permits
This category is reduced by 38.2 percent, primarily due to a decrease in building permits. The revised is based on actual building permit revenues from first half of the fiscal year.

Fines and Forfeitures
This category is reduced by $125,500 or 7.2 percent due to a decrease in Court Fines/Parking.

Community Services Officers have been utilized for multiple quality of life issues such as animal control (dogs on the beach and dogs off leash at city parks) which have impacted time spent on their other duties. One full time position was held vacant while a CSO attended the police academy. Upon graduation from the police academy and promotion to Police Officer, the CSO position was filled. The unfilled position and duties other than parking contributed to the decrease.

The City has collected $145,712 in nuisance abatement fines since 2016. An additional $17,500 in revenue is estimated for 2023-24. The fines are restricted for restroom related projects. Staff recommends using the estimated balance of $163,212 for CIP 669 City Restrooms and Renovations and replacing $163,212 of the $247,389 in unrestricted revenue from the General Fund with restricted nuisance abatement fines, also in the General Fund. This is a change in the funding source City of Hermosa Beach Page 8 of 14 Printed on 3/19/2024 powered by Legistar™831
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only and does not change the overall amount appropriated to CIP 669.

Use of Money and Property
This category is increased by 7.2 percent due to an increase in interest rates, Community Center rental revenue, and beach/plaza promotion revenue.

Intergovernmental/State
This category is increased by 107.9 percent due to estimated mandated cost claims for two years.

Current Service Charges
The estimates for user fees or service charges are up by 0.2 percent. There are many accounts in this category, some increase and some decrease. Parking Meter revenue is up due to the change in meter rates. General Plan Maintenance Fee revenue is estimated to be down based on the first half of the year. Utility Trench Service Connect Permit revenue is down to less utility work and fewer permits pulled. Annual Parking Permit revenue is down due to the change in residential permit policies.

Other Revenue
Funds received in the General Miscellaneous, Reimbursement/Refund and Contribution (donations) accounts are included in the midyear revenue estimates. No revenue is assumed in the original budget for these revenue sources. Appropriations have already been added where a donation is intended to be spent. The increase in this category is primarily due to $52,856 for solid waste contract administrative fees left out of the 2023-24 budget.

ADDITIONAL APPROPRIATIONS
Additional appropriations requested by departments are shown on the attached spreadsheet, 2023- 24 Additional Appropriations Report (Attachment 2). Overall appropriations in the General Fund decreased by $183,430. The City Clerk’s Department requested a reduction in Conferences and Training due to no longer needing funds for tuition reimbursement purposes. Community Development requested a decrease in appropriations for several contracts, adjusting the budget to reflect the amount needed through the end of the current fiscal year. Due to the September 2024 date of the Summer Concert series, funds will not be needed until the FY 2024-25 Budget.

The City Clerk’s Department requests a full-time Office Assistant in place of one part-time Office Assistant and one intern. The City Manager’s Department requests reinstatement of an intern position to assist with development and implementation of City programs, public communications, research and analysis, and special projects for all City Departments. The Finance Department requests a part-time Senior Finance Analyst to replace the part-time Senior Account Clerk position that was eliminated due to COVID-19 budget reductions. This role would assist with the ongoing needs of the department, including budget, reporting, audit, and special projects. The Public Works City of Hermosa Beach Page 9 of 14 Printed on 3/19/2024 powered by Legistar™832
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Department requests a salary range adjustment for the three Senior Engineer positions.

Several grants have been awarded to the City. Revenue estimates have been adjusted and additional appropriations have been requested accordingly.

Funding on several Capital Improvement Projects (CIPs) has been adjusted on the following projects:
· CIP 105 Annual Street Improvements
· CIP 112 Annual City Sidewalk Improvements
· CIP 195 City Sidewalk Improvements
· CIP 417 Annual Storm Drain Improvements
· CIP 502 Greenbelt Pedestrian Trail
· CIP 692 14th Street Restroom Rehabilitation
· CIP 699 Parking Structure Lot C
· CIP 760 Tree Well Grates
See attached revised project sheets (Attachment 7).

RESULT OF CHANGES
As a result of changes to estimated revenue, appropriation revisions, General Plan Maintenance Fees, CASp fees and the PEG Grant, a balance of $867,674 is available in the General Fund.

Staff recommends that those funds be used in the following manner:
· Assign additional funds of $137,905 from the balance available in the General Fund to bring the Contingency up to the goal amount of 20 percent of General Fund operating appropriations;
· Leave the remaining $729,769 from the balance available in the General Fund and assign the balance for use in the upcoming budget. Staff will bring back recommendations for use with the FY 2024-25 Budget.

FINANCIAL POLICIES
The City Council’s adopted fund balance policies are:

General Fund
Any funds remaining unspent at year-end in the General Fund transfer equally to the Contingency Balance, Insurance Fund, Equipment Replacement Fund, the Capital Improvement Fund, and Capital City of Hermosa Beach Page 10 of 14 Printed on 3/19/2024 powered by Legistar™833
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Facility Reserve. The City Council may change these transfers annually as necessary.

Contingency Balance
The goal is to maintain an amount equal to 20 percent of the General Fund operating appropriations to be used in the event of economic uncertainties or unforeseen emergencies. The goal was increased from 16 percent t0 20 percent with the FY 2023-24 Budget.

Compensated Absences Balance
The goal is to maintain 25 percent of the funding needed for accrued liabilities for employee vacation, sick, and compensatory time.

Retirement Rate Stabilization Balance
These funds were set aside in the 2004-05 Budget for use during times of rate volatility. The 2018-19 Budget approved that the existing balance of $1 million be used for the creation of a retirement trust however that action was on hold due to COVID-19. The current balance is $1,021,575. An additional $829,060 was set aside for a retirement trust when the CalPERS police side fund paid off.

Insurance Fund
The goal is to maintain $3,000,000 in net position for claims above recorded claims liabilities or catastrophic losses.

Equipment Replacement Fund
The goal is to maintain net position equal to the accumulated amount calculated on the equipment replacement schedule for all equipment, based on replacement cost and useful life. 2022-2023 Unspent Funds
For 2022-23, the unspent funds of $2,700,989 were left in the General Fund for potential use in the 2023-2024 Budget and are currently unassigned.

Staff recommends that the unspent funds from 2022-23 be used as follows:
· Transfer $6,374 to the Lighting/Landscaping Fund to clear the deficit; · Transfer $1,419,308 to the Insurance Fund to meet the funding goal of $3,000,000; · Transfer $198,866 to the Equipment Replacement Goal to meet the funding goal of $3,559,204; and
· Transfer the remaining 2022-23 unspent funds of $1,076,441 to the Capital Improvement Fund to replenish the balance.

Progress on Funding Goals
Due to the annual adjustment to the workers’ compensation and liability claims liabilities, ongoing City of Hermosa Beach Page 11 of 14 Printed on 3/19/2024 powered by Legistar™834
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Due to the annual adjustment to the workers’ compensation and liability claims liabilities, ongoing litigation costs, settlements, and additional appropriations recommended at Midyear, the balance in the Insurance Fund is under the $3,000,000 goal. Claims liabilities will be adjusted in the Insurance Fund at year end based on actuarial reports typically received in May for Workers’ Compensation and General Liability Claims. Staff recommends transferring $1,419,308 of the 2022-23 unspent funds in the General Fund to the Insurance Fund to bring the balance back up to the funding goal of $3,000,000. Staff also recommends transferring $198,866 of the 2022-23 unspent funds in the General Fund to bring the Equipment Replacement Fund up to the target funding goal of $3,559,204.

Fund Name Goal
Estimated Fund
Balance
12/31/2023
Estimated
Fund
Balance
6/30/2024 Over/(Under) Goal Amount
Compensated
Absences Balance $294,170 $0 $294,170 $82,112
Contingency Balance $10,116,922 $0
($81,919)2
$1,419,3081
Equipment
Replacement Fund$3,559,204 $3,360,338$198,8661 $3,559,204 $0 1 From 2022-23 Unspent Fund in the General Fund
2 Additional appropriations requested by department
Insurance Fund $3,000,000 $0
Recommended
Midyear
Change
$10,116,922,
20% of Operating Budget
$212,058,
25% of Current
Liability
$3,000,000 $1,662,611
$9,979,017 1 $137,905
As shown in the Over/(Under) Goal Amount column, the Compensated Absences balance is above the funding goal. The Contingency Balance, Insurance Fund, and Equipment Replacement Fund goals are at the target amounts after the recommended changes.

UPCOMING/ONGOING CHALLENGES
With approval of the Midyear changes by the City Council, staff would move forward with preparation of the 2024-25 Budget. Staff will remain conservative in its approach to the budget process for next year due to the many uncertainties present in the economy. 2024-25 BUDGET WORKSHOP
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The Capital Improvement Plan Study Session is planned for April 18, 2024. The Budget Study Session is scheduled for June 5, 2024, with adoption planned for June 19, 2024.

General Plan Consistency:

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

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

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

Policy:
· 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.

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

Policy:
· 1.2 Priority investments. Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan.

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

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

Fiscal Impact:

Midyear budget revisions increase revenue estimates in the General Fund by $541,971 and reduce appropriations by $183,430. The Contingency (Rainy Day Fund) meets the 20 percent funding goal and the Compensated Absences balance, Insurance Fund and Equipment Replacement funds are City of Hermosa Beach Page 13 of 14 Printed on 3/19/2024 powered by Legistar™836
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and the Compensated Absences balance, Insurance Fund and Equipment Replacement funds are also at the target funding goals. $729,769 in unspent funds from midyear remain available for use in the 2024-25 Budget if necessary.

Attachments:

1. 2023-24 Revenue Detail Report

2. 2023-24 Additional Appropriations Report

3. 2023-24 Budget Transfers Report

4. 2023-24 Midyear Budget Summary Report

5. Link to City Council Adopted Fund Balance Policies

6. 2023-24 City Council Travel Summary

7. Updated Capital Improvement Project Sheets
Respectfully Submitted by: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
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Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
001 3101 Current Year Secured 18,040,397 7,167,439 7,769,220 19,325,292 19,508,335 183,043 0.9% 001 3102 Current Year Unsecured 609,275 537,527 609,564 549,459 611,783 62,324 11.3% 001 3103 Prior Year Collections 186,314 211,791 167,162 0 160,000 160,000 N/A 001 3106 Supplemental Roll SB813 488,219 142,908 162,104 513,826 513,826 0 0.0% 001 3107 Transfer Tax 338,528 149,072 134,834 366,654 306,197 -60,457 -16.5% 001 3108 Sales Tax 3,621,875 1,183,339 1,289,388 3,858,624 3,858,624 0 0.0% 001 3109 1/2 Cent Sales Tx Ext 294,525 97,815 95,464 298,836 292,246 -6,590 -2.2% 001 3110 Spectrum Cable TV Franchise 183,448 46,723 42,019 188,845 165,072 -23,773 -12.6% 001 3111 Electric Franchise 111,894 0 0 111,894 111,894 0 0.0% 001 3112 Gas Franchise 58,169 0 0 58,169 58,169 0 0.0%
001 3113 Refuse Franchise 378,604 155,939 219,519 391,156 531,250 140,094 35.8% 001 3114 Transient Occupancy Tax 5,151,136 2,420,507 2,429,422 5,168,328 5,168,328 0 0.0% 001 3115 Business License 1,222,095 463,086 519,943 1,195,572 1,278,952 83,380 7.0% 001 3120 Utility User Tax 2,761,918 1,101,903 1,122,493 2,577,840 2,782,472 204,632 7.9% 001 3122 Property tax In-lieu of Veh Lic Fees 3,388,080 36,466 30,385 3,603,320 3,693,906 90,586 2.5% 001 3123 Frontier Cable Franchise Fee 91,864 24,388 20,091 94,000 79,622 -14,378 -15.3% Total Taxes 36,926,341 13,738,903 14,611,608 38,301,815 39,120,676 818,861 2.1% 001 3202 Dog Licenses 27,712 25,369 25,790 27,676 27,676 0 0.0% 001 3204 Building Permits 719,539 391,789 241,556 875,000 500,000 -375,000 -42.9% 001 3205 Electric Permits 107,787 58,797 46,338 118,000 95,000 -23,000 -19.5% 001 3206 Plumbing Permits 93,413 54,890 33,552 110,000 70,000 -40,000 -36.4% 001 3207 Occupancy Permits 4,452 2,703 1,272 4,600 4,600 0 0.0% 001 3208 Grease Trap Permits 812 777 0 1,554 0 -1,554 -100.0% 001 3209 Garage Sales 102 70 80 100 100 0 0.0%
001 3211 Banner Permits 1,515 540 325 2,000 1,500 -500 -25.0% 001 3213 Animal Redemption Fee 0 0 0 0 0 0 N/A
001 3214 Amplified Sound Permit 7,163 3,248 3,744 13,650 10,050 -3,600 -26.4% 001 3215 Temporary Sign Permit 300 0 300 0 600 600 N/A
001 3217 Open Fire Permit 1,498 770 520 1,500 1,500 0 0.0% 001 3219 Newsrack Permits -240 0 0 148 148 0 0.0%
001 3226 Admin Permit - Limited Outdoor Seating 585 0 585 600 585 -15 -2.5% 001 3227 Mechanical Permits 74,457 38,697 22,586 75,000 45,000 -30,000 -40.0% 001 3228 Concealed Weapons Permit 645 93 639 0 1,760 1,760 N/A 001 3229 Private Special Event Permit 875 875 0 0 0 0 N/A 001 3230 Temporary Minor Special Event Permit 5,954 3,029 2,925 6,058 6,058 0 0.0% 001 3236 Drone Permit Fee 2,760 1,235 510 2,500 1,165 -1,335 -53.4% 001 3239 A-Frame sign Permit 190 0 0 0 0 0 N/A
Total Licenses and Permits 1,049,519 582,882 380,722 1,238,386 765,742 -472,644 -38.2% 1 Attachment 1838
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
001 3301 Municipal Court Fines 59,984 24,239 27,307 52,000 63,000 11,000 21.2% 001 3302 Court Fines /Parking 1,521,828 831,698 737,017 1,658,000 1,522,000 -136,000 -8.2% 001 3305 Administrative Fines -165,550 8,500 23,075 19,450 19,450 0 0.0% 001 3306 Nuisance Abatement- Restrooms 15,250 7,900 7,475 18,000 17,500 -500 -2.8% Total Fines and Forfeitures 1,431,512 872,337 794,874 1,747,450 1,621,950 -125,500 -7.2% 001 3401 Interest Income 321,714 81,315 269,804 567,803 633,735 65,932 11.6% 001 3404 Community Center Leases 33,104 12,702 12,702 33,104 33,105 1 0.0% 001 3405 Community Center Rentals 248,917 115,386 111,937 187,000 210,000 23,000 12.3% 001 3406 Community Center Theatre 88,491 41,383 40,681 70,000 70,000 0 0.0% 001 3414 Fund Exchange 490,000 0 0 0 0 0 N/A
001 3418 Special Events 97,914 54,874 37,365 70,000 70,000 0 0.0% 001 3422 Beach/Plaza Promotions 43,259 43,259 37,637 26,544 37,637 11,093 41.8% 001 3425 Ground Lease 56,400 28,200 28,200 56,401 56,401 0 0.0% 001 3427 Cell Site License- Sprint 45,785 22,460 23,499 47,917 47,584 -333 -0.7% 001 3428 Cell Site License - Verizon 36,848 18,242 18,789 37,578 37,953 375 1.0% 001 3429 Inmate Phone Services 159 33 52 150 150 0 0.0% 001 3431 Storage Facility Operating Lease 254,616 127,308 131,127 262,254 262,254 0 0.0% 001 3432 Film Permits 36,057 4,020 14,608 15,000 15,000 0 0.0% 001 3435 Cell Site License- Crown Castle 295 0 178 304 304 0 0.0% 001 3450 Investment Discount 6,092 2,022 3,198 7,601 6,544 -1,057 -13.9% 001 3475 Investment Premium -116 -66 -41 -73 -64 9 -12.3% Total Use of Money and Property 1,759,535 551,138 729,736 1,381,583 1,480,603 99,020 7.2% 001 3507 Highway Maintenance 0 0 0 2,300 2,300 0 0.0%
001 3508 Mandated Costs 14,019 14,019 133 5,200 113,926 108,726 2090.9% 001 3509 Homeowner Property Tax Relief 78,425 11,774 11,680 78,490 78,490 0 0.0% 001 3510 POST 0 0 0 0 0 0 N/A
001 3511 STC-Service Officer Training 7,624 2,509 1,144 0 5,813 5,813 N/A 001 3575 VLF Coll Excess of $14m-Rev code 11001.5 20,209 0 0 20,209 20,209 0 0.0% Total Intergovernmental/State 120,277 28,302 12,957 106,199 220,738 114,539 107.9% 001 3801 Residential Inspection 50,897 24,309 24,646 50,000 50,000 0 0.0% 001 3802 Planning Sign Permit/Master Sign Program 24,464 14,727 9,809 28,000 20,000 -8,000 -28.6% 001 3803 Negative Declaration 3,997 0 0 0 0 0 N/A
001 3804 General Plan Maintenance Fees 83,808 39,594 22,164 85,000 45,000 -40,000 -47.1% 001 3805 Amendment to Planning Entitlement 27,334 9,344 25,341 35,000 50,682 15,682 44.8% 001 3806 Board Of Appeals 1,737 0 0 0 0 0 N/A
001 3808 Zone Variance Review 0 0 3,305 0 3,305 3,305 N/A 001 3809 Tentative Map Review 11,002 0 5,501 7,500 7,500 0 0.0% 001 3810 Final Map Review 2,415 765 825 4,000 1,650 -2,350 -58.8% 2 839
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
001 3812 Conditional Use Permit - Comm/Other 11,434 0 5,717 12,000 12,000 0 0.0% 001 3813 Plan Check Fees 359,106 192,847 191,999 385,694 385,694 0 0.0% 001 3815 Public Works Services 151,255 64,600 69,927 137,000 137,000 0 0.0% 001 3816 Utility Trench Service Connect Permit 195,567 102,838 47,480 170,000 100,000 -70,000 -41.2% 001 3817 Address Change Request Fee 5,512 2,388 1,988 4,776 4,000 -776 -16.2% 001 3818 Police Services 4,827 3,107 1,529 5,000 3,000 -2,000 -40.0% 001 3821 Daily Permit Lot A/Parking Structure 59,520 25,358 38,445 58,102 72,607 14,505 25.0% 001 3823 Special Event Security/Police 76,417 46,311 40,558 55,000 60,000 5,000 9.1% 001 3824 500' Noticing 12,518 1,465 7,946 4,623 16,000 11,377 246.1% 001 3825 Public Notice Posting 426 0 2,144 0 4,288 4,288 N/A 001 3827 Library Grounds Maintenance 10,569 0 21,667 10,569 21,667 11,098 105.0% 001 3831 Non-Utility Street Excavation Permit 36,189 15,642 23,639 26,000 40,000 14,000 53.8% 001 3834 Encroachment Permit 618,077 299,594 2,793 72,000 45,000 -27,000 -37.5% 001 3836 Refund Transaction Fee 4,371 2,562 1,680 6,000 6,000 0 0.0% 001 3837 Returned Check Charge 778 106 996 269 1,000 731 271.7% 001 3838 Sale Of Maps/Publications 68 0 68 0 68 68 N/A
001 3839 Photocopy Charges 545 231 550 709 709 0 0.0%
001 3840 Ambulance Transport 640,700 355,489 380,916 749,609 749,609 0 0.0% 001 3841 Police Towing 152,311 43,928 62,983 83,345 129,150 45,805 55.0% 001 3842 Parking Meters 2,166,252 1,051,751 1,748,032 2,976,173 3,220,520 244,347 8.2% 001 3843 Parking Permits-Annual 222,070 21,604 60,860 418,850 222,070 -196,780 -47.0% 001 3844 Daily Parking Permits 2,130 1,110 1,540 3,282 3,282 0 0.0% 001 3845 Lot A Revenue 513,886 269,052 416,120 794,528 785,798 -8,730 -1.1% 001 3846 No Pier Pkg Structure Revenue 569,043 299,389 465,891 901,432 901,432 0 0.0% 001 3847 In Lieu Fee / Parking Facility 0 0 0 0 0 0 N/A 001 3848 Driveway Permits 3,156 1,214 1,602 3,000 2,366 -634 -21.1% 001 3849 Guest Permits 841 504 470 900 475 -425 -47.2%
001 3850 Contractors Permits 30,464 16,132 15,678 36,120 29,526 -6,594 -18.3% 001 3851 Cash Key Revenue -49 -16 -26 0 -50 -50 N/A
001 3852 Recreation Program Transaction Fee 76,049 23,232 26,338 70,000 70,000 0 0.0% 001 3855 Bus Passes 227 161 78 400 200 -200 -50.0%
001 3856 500' - 2nd Noticing 0 0 0 0 0 0 N/A
001 3857 Parking Plan Application 0 0 5,275 0 10,550 10,550 N/A 001 3858 Monthly Permit Lot A/Parking Structure 129,332 60,202 60,718 135,825 135,825 0 0.0% 001 3862 Alarm Permit Fee 4,884 1,650 1,648 5,250 4,400 -850 -16.2% 001 3864 C.U.P./Fences/Walls 0 0 1,455 0 0 0 N/A
001 3865 Lot B Revenue 100,725 49,090 77,478 167,157 167,157 0 0.0% 001 3867 Precise Development Plans 12,181 5,937 12,064 11,874 24,000 12,126 102.1% 3 840
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
001 3868 Public Noticing/300 Ft Radius 4,769 2,800 6,680 5,600 13,360 7,760 138.6% 001 3877 Business License Registration 14,643 6,248 7,600 14,888 14,888 0 0.0% 001 3879 Business License Renewal Fee 43,302 19,716 22,057 40,000 40,000 0 0.0% 001 3881 Tobacco Retailer Renewal 0 0 0 0 0 0 N/A
001 3883 Final/Tentative Map Extension 0 0 2,318 0 4,636 4,636 N/A 001 3884 Lot Line Adjustment 4,160 0 478 0 956 956 N/A
001 3888 Slope/Grade Height Determination 3,084 3,084 3,325 6,168 6,650 482 7.8% 001 3890 300 Ft Radius Noticing/Appeal to CC 0 0 0 0 0 0 N/A 001 3893 Contract Recreation Classes 747,618 228,678 257,610 700,000 700,000 0 0.0% 001 3894 Other Recreation Programs 132,352 36,099 49,045 206,700 193,800 -12,900 -6.2% 001 3895 Zoning Information Letters 888 210 678 420 1,356 936 222.9% 001 3897 Admin Fee/TULIP Ins Certificate 62 62 0 0 0 0 N/A 001 3898 Height Limit Exception 0 0 0 0 0 0 N/A
001 3899 Condo - CUP/PDP 11,874 0 12,094 5,937 24,188 18,251 307.4% Total Current Service Charges 7,339,787 3,343,114 4,251,722 8,494,700 8,543,314 48,614 0.6% 001 3901 Sale of Real/Personal Property 2,800 0 0 0 0 0 N/A 001 3902 Refunds/Reimb Previous Years 3,737 0 0 0 23,850 23,850 N/A 001 3903 Contributions Non Govt 42,069 20,010 8,371 0 13,335 13,335 N/A 001 3904 General Miscellaneous -22,482 1,674 1,859 0 2,071 2,071 N/A 001 3907 Pkg Str Utility Reimb From Beach House 9,670 2,049 1,116 6,800 6,800 0 0.0% 001 3908 Hermosa Sr Ctr Donations/Memberships 2,964 1,223 1,056 3,000 3,000 0 0.0% 001 3938 Solid Waste Contract Admin Fee 59,887 24,953 26,428 0 52,856 52,856 N/A 001 3960 Frontier PEG Grant-formerly Verizon 18,373 4,878 4,018 21,221 18,373 -2,848 -13.4% 001 3968 Spectrum PEG Grant-formerly TWC 36,801 9,345 8,404 37,600 36,801 -799 -2.1% Total Other Revenue 153,819 64,132 51,252 68,621 157,086 88,465 128.9% 001 6801 Mural Review 2,569 2,530 562 5,060 1,124 -3,936 -77.8% 001 6809 Categorical Exemption 3,444 1,872 2,661 3,744 5,322 1,578 42.1% 001 6810 Deed Restriction/Covenant Review 11,742 5,294 6,448 10,588 10,588 0 0.0% 001 6811 Landscape Plan Review 7,586 3,185 1,041 6,370 2,082 -4,288 -67.3% 001 6813 Director's Determination 2,963 1,139 3,045 2,278 3,045 767 33.7% 001 6818 New/Modified Business Zoning Review 11,750 5,675 5,489 11,350 5,489 -5,861 -51.6% 001 6819 Historic Resource Review 3,362 3,362 0 6,724 0 -6,724 -100.0% 001 6821 Solar Plan Check/Inspection 34,499 7,650 16,200 15,300 32,400 17,100 111.8% 001 6822 Temporary Certificate of Occupancy 225 0 304 0 608 608 N/A 001 6825 Clean Bay Restaurant - NPDES Inspection 3,860 4,732 13,532 41,200 20,000 -21,200 -51.5% 001 6828 Public Improvement Plan Check 53,439 20,832 22,592 51,000 51,000 0 0.0% 001 6832 DUI Collision Response 0 0 0 1,039 1,039 0 0.0% 001 6834 Citation Sign-off 664 104 226 560 560 0 0.0%
4 841
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
001 6837 Deceased Animal Pickup 65 65 65 140 144 4 2.9% 001 6839 Pet Home Quarantine Review 0 0 0 70 0 -70 -100.0% 001 6840 Multiple Dog Review 502 242 130 520 268 -252 -48.5% 001 6851 Bus. License State Mandated Fee (CASp) 9,795 4,731 5,084 9,087 9,795 708 7.8% 001 6852 Tobacco Retailer Renewal 4,411 2,961 3,813 4,411 4,411 0 0.0% 001 6860 Refuse Lien Fees/Athens 639 5,519 7,524 700 700 0 0.0% 001 6861 Oversized Vehicle Permit 635 329 255 1,479 408 -1,071 -72.4% 001 6862 Athens Enclosure Support Fee 0 0 888 0 6,703 6,703 N/A 001 6867 Credit Card Processing Fee 78,965 39,367 43,238 79,098 79,098 0 0.0% 001 6868 Alternate Materials/Methods Review 0 0 213 0 213 213 N/A 001 6871 Sewer Service Charge Rebate -13,746 -2,633 -2,736 -5,780 -13,746 -7,966 137.8% 001 6873 Impound Fee- Bicycle, Scooters & Wheeled 0 0 0 158 0 -158 -100.0% 001 6881 Public Tree Removal Permit 1,320 643 0 1,000 500 -500 -50.0% 001 6882 Sidewalk Vending Permit 0 0 0 0 790 790 N/A
001 6883 Short-term Vacation Rental Permit 5,013 1,589 1,712 5,013 1,712 -3,301 -65.8% 001 6884 M-1 Limited Event Permit 0 0 0 0 0 0 N/A
001 6885 Temporary Outdoor Dining/Retail Permit 3,864 1,264 0 2,528 0 -2,528 -100.0% 001 6886 Minor Conditional Use Permit 0 0 0 0 0 0 N/A
001 6887 Minor Planning Sign Review 0 0 0 0 0 0 N/A
001 6890 Outdoor Dining Encroachments 0 0 322,469 525,860 525,860 0 0.0% Total Current Service Charges (Continued) 7,721,172 3,517,698 4,757,729 9,342,818 9,450,513 107,695 1.2% Total General Fund 49,008,356 19,291,260 21,287,626 52,118,251 52,660,222 541,971 1.0% 105 3101 Current Year Secured 456,046 184,121 183,872 456,000 456,000 0 0.0% 105 3103 Prior Year Collections 9,405 3,249 3,241 3,849 9,000 5,151 133.8% 105 3105 Assessment Rebates -3,445 -664 -738 -2,200 -3,445 -1,245 56.6% Total Taxes 462,006 186,706 186,375 457,649 461,555 3,906 0.9% 105 3401 Interest Income 2,430 566 577 4,291 3,103 -1,188 -27.7% 105 3450 Investment Discount 45 17 9 57 32 -25 -43.9%
105 3475 Investment Premium -1 -1 0 -1 -1 0 0.0%
Total Use of Money and Property 2,474 582 586 4,347 3,134 -1,213 -27.9% Total Lighting/Landscaping District Fund 464,480 187,288 186,961 461,996 464,689 2,693 0.6% 115 3401 Interest Income 18,721 5,696 18,020 28,872 43,160 14,288 49.5% 115 3450 Investment Discount 352 124 210 387 446 59 15.2% 115 3475 Investment Premium -7 -4 -3 -4 -4 0 0.0%
Total Use of Money and Property 19,066 5,816 18,227 29,255 43,602 14,347 49.0% 115 3501 Section 2106 Allocation 63,279 29,571 31,420 78,160 72,329 -5,831 -7.5% 115 3502 Section 2107 Allocation 152,953 66,323 70,566 155,398 163,933 8,535 5.5% 115 3503 Section 2107.5 Allocation 4,000 4,000 4,000 4,000 4,000 0 0.0% 5 842
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
115 3512 Section 2105 (Prop 111) 118,179 47,670 50,809 129,376 120,021 -9,355 -7.2% 115 3513 Sec 2103 Higher Mtr Veh Excise Tax(HUTA) 160,688 75,547 86,307 195,372 173,571 -21,801 -11.2% 115 3522 TDA Article 3/Local 10,000 0 0 0 0 0 N/A
115 3567 Road Maintenance Rehab Account 440,012 145,201 163,738 487,384 472,034 -15,350 -3.1% Total Intergovernmental/State 949,111 368,312 406,840 1,049,690 1,005,888 -43,802 -4.2% Total State Gas Tax Fund 968,177 374,128 425,067 1,078,945 1,049,490 -29,455 -2.7% 117 3401 Interest Income 5,228 1,664 6,364 9,188 13,207 4,019 43.7% 117 3450 Investment Discount 96 36 74 123 136 13 10.6%
117 3475 Investment Premium -2 -1 -1 -1 -1 0 0.0%
Total Use of Money and Property 5,322 1,699 6,437 9,310 13,342 4,032 43.3% 117 3860 AB939 Surcharge 63,489 27,901 27,796 64,000 64,000 0 0.0% Total Current Service Charges 63,489 27,901 27,796 64,000 64,000 0 0.0% Total AB 939 Fund 68,811 29,600 34,233 73,310 77,342 4,032 5.5% 121 3608 Maintenance Allocation 20,557 0 0 96,123 96,123 0 0.0% Total Intergovernmental/County 20,557 0 0 96,123 96,123 0 0.0% Total Prop A Open Space Fund 20,557 0 0 96,123 96,123 0 0.0% 122 3401 Interest Income 42,867 14,247 44,081 80,904 99,196 18,292 22.6% 122 3426 Easement Agreement 295,637 168,966 171,912 345,909 345,909 0 0.0% 122 3450 Investment Discount 802 307 516 1,083 1,024 -59 -5.4% 122 3475 Investment Premium -16 -10 -7 -10 -10 0 0.0%
Total Use of Money and Property 339,290 183,510 216,502 427,886 446,119 18,233 4.3% Total Tyco Fund 339,290 183,510 216,502 427,886 446,119 18,233 4.3% 125 3116 Parks & Recreation Facility Tax 0 0 0 0 0 0 N/A Total Taxes 0 0 0 0 0 0 N/A
125 3401 Interest Income 6,464 2,120 6,933 12,534 15,331 2,797 22.3% 125 3450 Investment Discount 121 46 81 168 158 -10 -6.0% 125 3475 Investment Premium -2 -1 -1 -2 -2 0 0.0%
Total Use of Money and Property 6,583 2,165 7,013 12,700 15,487 2,787 21.9% 125 3910 Park/Recreation In Lieu Fee 60,966 49,364 0 60,966 60,966 0 0.0% Total Other Revenue 60,966 49,364 0 60,966 60,966 0 0.0% Total Parks/Rec Facility Tax Fund 74,132 51,529 7,013 73,666 76,453 2,787 3.8% 135 3401 Interest Income 122 37 120 223 272 49 22.0%
135 3450 Investment Discount 2 1 1 3 3 0 0.0%
135 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 124 38 121 226 275 49 21.7% 135 3925 Spec Assessment Admin Fees 5,000 5,000 5,000 5,000 5,000 0 0.0% Total Other Revenue 5,000 5,000 5,000 5,000 5,000 0 0.0% Total Bayview Drive District Admin Expense Fund 5,124 5,038 5,121 5,226 5,275 49 0.9% 6 843
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
138 3401 Interest Income 0 0 0 0 0 0 N/A
138 3450 Investment Discount 0 0 0 0 0 0 N/A
Total Use of Money and Property 0 0 0 0 0 0 N/A
Total Loma District Admin Expense Fund 0 0 0 0 0 0 N/A
139 3401 Interest Income 88 27 83 166 191 25 15.1%
139 3450 Investment Discount 2 1 1 2 2 0 0.0%
139 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 90 28 84 168 193 25 14.9% 139 3925 Special Assessment Admin Fees 3,950 3,950 4,000 4,000 4,000 0 0.0% Total Other Revenue 3,950 3,950 4,000 4,000 4,000 0 0.0% Total Beach Dr. Assmnt Dist Admin Exp Fund 4,040 3,978 4,084 4,168 4,193 25 0.6% 140 3401 Interest Income 0 0 0 0 0 0 N/A
Total Use of Money and Property 0 0 0 0 0 0 N/A
140 3715 CDBG Administration 217,825 0 0 0 0 0 N/A
140 3720 Americans with Disabilities Act 0 0 0 366,406 162,412 -203,994 -55.7% Total Intergovernmental/Federal 217,825 0 0 366,406 162,412 -203,994 -55.7% Total Community DevtBlock Grant Fund 217,825 0 0 366,406 162,412 -203,994 -55.7% 145 3117 Proposition A Transit 511,264 261,701 258,197 554,063 554,063 0 0.0% Total Taxes 511,264 261,701 258,197 554,063 554,063 0 0.0% 145 3401 Interest Income 9,200 3,904 5,578 20,044 17,930 -2,114 -10.5% 145 3450 Investment Discount 195 83 62 268 185 -83 -31.0% 145 3475 Investment Premium -4 -3 -1 -3 -2 1 -33.3%
Total Use of Money and Property 9,391 3,984 5,639 20,309 18,113 -2,196 -10.8% 145 3853 Dial-A-Taxi Program 1,029 389 250 622 1,029 407 65.4% 145 3855 Bus Passes 131 83 0 110 110 0 0.0%
Total Current Service Charges 1,160 472 250 732 1,139 407 55.6% Total Proposition A Fund 521,815 266,157 264,086 575,104 573,315 -1,789 -0.3% 146 3118 Proposition C Local Return 424,079 217,073 214,268 459,580 459,580 0 0.0% Total Taxes 424,079 217,073 214,268 459,580 459,580 0 0.0% 146 3401 Interest Income 33,170 11,362 33,107 64,020 74,595 10,575 16.5% 146 3450 Investment Discount 621 243 389 857 770 -87 -10.2% 146 3475 Investment Premium -13 -8 -5 -8 -8 0 0.0%
Total Use of Money and Property 33,778 11,597 33,491 64,869 75,357 10,488 16.2% Total Proposition C Fund 457,857 228,670 247,759 524,449 534,937 10,488 2.0% 147 3119 Measure R Local Return Funds 761,528 162,763 160,552 344,685 344,685 0 0.0% Total Taxes 761,528 162,763 160,552 344,685 344,685 0 0.0% 7 844
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
147 3401 Interest Income 11,775 2,708 22,309 14,051 37,976 23,925 170.3% 147 3450 Investment Discount 187 58 259 188 392 204 108.5% 147 3475 Investment Premium -3 -2 -3 -2 -4 -2 100.0%
Total Use of Money and Property 11,959 2,764 22,565 14,237 38,364 24,127 169.5% Total Measure R Fund 773,487 165,527 183,117 358,922 383,049 24,127 6.7% 148 3131 Measure M Local Return Funds 359,689 184,145 180,954 390,643 390,643 0 0.0% Total Taxes 359,689 184,145 180,954 390,643 390,643 0 0.0% 148 3401 Interest Income 18,272 5,472 24,456 28,722 49,593 20,871 72.7% 148 3450 Investment Discount 329 117 284 385 512 127 33.0% 148 3475 Investment Premium -3 0 -4 -4 -5 -1 25.0%
Total Use of Money and Property 18,598 5,589 24,736 29,103 50,100 20,997 72.1% Total Measure M Fund 378,287 189,734 205,690 419,746 440,743 20,997 5.0% 149 3132 Measure W Local Returns 370,002 158,027 0 157,832 157,832 0 0.0% Total Taxes 370,002 158,027 0 157,832 157,832 0 0.0%
149 3401 Interest Income 5,777 1,568 10,588 8,145 19,603 11,458 140.7% 149 3450 Investment Discount 105 32 121 109 202 93 85.3% 149 3475 Investment Premium -1 0 -2 0 -2 -2 N/A
Total Use of Money and Property 5,881 1,600 10,707 8,254 19,803 11,549 139.9% Total Measure W Fund 375,883 159,627 10,707 166,086 177,635 11,549 7.0% 150 3558 Beverage Recycling Grant 5,127 0 0 5,300 5,300 0 0.0% 150 3562 State Homeland Security Grant Program 0 0 0 72,000 72,000 0 0.0% 150 3573 Alcoholic Beverage Control Grant (ABC) 720 0 0 40,000 40,000 0 0.0% 150 3574 SB 1383 Local Assistance Grant OWR1 0 0 0 0 0 0 N/A 150 3590 SB 2 Zoning Ord Update Grant 144,000 0 0 181,545 16,924 -164,621 -90.7% 150 3591 Local Early Action Planning 65,000 0 0 16,370 16,740 370 2.3% 150 3592 Coastal Conservancy Grant- Lot D 0 0 0 433,650 707,600 273,950 63.2% 150 3593 CalRecycle Grant 0 0 0 103,442 0 -103,442 -100.0% 150 3594 State Dept of Parks & Rec Specific 1,540,629 0 1,225,800 0 2,489,849 2,489,849 N/A Total Intergovernmental/State 1,755,476 0 1,225,800 852,307 3,348,413 2,496,106 292.9% 150 3757 CalOES Grant - Tsunami Siren 0 0 0 0 4,700 4,700 N/A 150 3758 CalOES Grant - Education 0 0 0 95,165 95,165 0 0.0% 150 3760 Mobile Crisis Response Team 0 0 0 1,000,000 1,000,000 0 0.0% 150 3761 CalOES- Local Hazard Mitigation Plan 0 0 0 0 0 0 N/A Total Intergovernmental/Federal 0 0 0 1,095,165 1,099,865 4,700 0.4% 150 3926 Opioid Settlement- Distributor 19,920 19,920 8,602 0 8,602 8,602 N/A 150 3927 Opioid Settlement- NOAT 1,593 0 1,874 0 1,874 1,874 N/A 150 3928 Opioid Settlement- Janssen 11,525 0 6,069 0 12,139 12,139 N/A 150 3969 West Basin Grant-Water Filling Stations 3,000 0 0 0 0 0 N/A 8 845
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
150 3985 California Green Business Program 22,500 7,500 0 14,980 14,980 0 0.0% 150 3993 Safe Clean Water Program 0 0 0 0 0 0 N/A
150 3994 Officer Wellness and Mental Health 0 0 0 0 28,000 28,000 N/A Total Other Revenue 58,538 27,420 16,545 14,980 65,595 50,615 337.9% Total Grant Fund 1,814,014 27,420 1,242,345 1,962,452 4,513,873 2,551,421 130.0% 152 3401 Interest Income 1,976 635 2,130 3,461 4,852 1,391 40.2% 152 3450 Investment Discount 36 14 25 46 50 4 8.7%
152 3475 Investment Premium -1 0 0 0 0 0 N/A
Total Use of Money and Property 2,011 649 2,155 3,507 4,902 1,395 39.8% 152 3538 AQMD Emission Control AB2766 25,307 6,435 0 25,000 25,000 0 0.0% Total Intergovernmental/State 25,307 6,435 0 25,000 25,000 0 0.0% Total Air Quality Management District Fund 27,318 7,084 2,155 28,507 29,902 1,395 4.9% 153 3135 C.O.P.S. Allocation 128,805 110,063 138,525 128,805 138,525 9,720 7.5% Total Taxes 128,805 110,063 138,525 128,805 138,525 9,720 7.5% 153 3401 Interest Income 8,600 2,794 9,614 15,869 20,841 4,972 31.3% 153 3450 Investment Discount 163 61 112 212 215 3 1.4%
153 3475 Investment Premium -3 -2 -1 -2 -2 0 0.0%
Total Use of Money and Property 8,760 2,853 9,725 16,079 21,054 4,975 30.9% Total Supp Law Enf Serv Fund 137,565 112,916 148,250 144,884 159,579 14,695 10.1% 157 3755 FEMA- Public Assistance Covid-19 116,836 0 0 0 0 0 N/A Total Intergovernmental/Federal 116,836 0 0 0 0 0 N/A
Total FEMA/Cal OES Fund 116,836 0 0 0 0 0 N/A
159 3761 American Rescue Plan Act Allocation 2,310,877 2,310,877 0 0 0 0 N/A Total Intergovernmental/Federal 2,310,877 2,310,877 0 0 0 0 N/A Total American Rescue Plan Act Fund 2,310,877 2,310,877 0 0 0 0 N/A 160 3401 Interest Income 64,709 19,983 74,446 121,397 158,837 37,440 30.8% 160 3450 Investment Discount 1,191 438 865 1,625 1,640 15 0.9% 160 3475 Investment Premium -24 -14 -11 -16 -16 0 0.0%
Total Intergovernmental/State 65,876 20,407 75,300 123,006 160,461 37,455 30.4% 160 3602 Beach Outlet Maintenance 8,790 0 0 8,000 25,000 17,000 212.5% Total Intergovernmental/County 8,790 0 0 8,000 25,000 17,000 212.5% 160 3828 Sewer Connection Fee 7,942 4,077 0 8,154 8,000 -154 -1.9% 160 3829 Sewer Demolition Fee 3,190 1,974 1,064 2,700 2,700 0 0.0% 160 3832 Sewer Lateral Installation 20,115 10,887 43,962 18,000 51,000 33,000 183.3% Total Current Service Charges 31,247 16,938 45,026 28,854 61,700 32,846 113.8% 160 6861 Sewer Service Charge 1,185,995 480,732 496,559 1,167,988 1,210,578 42,590 3.6% Total Current Service Charges (Continued) 1,185,995 480,732 496,559 1,167,988 1,210,578 42,590 3.6% Total Sewer Fund 1,291,908 518,077 616,885 1,327,848 1,457,739 129,891 9.8% 9 846
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
161 3401 Interest Income 49,594 18,371 56,072 91,972 118,638 26,666 29.0% 161 3450 Investment Discount 572 13 635 1,231 1,225 -6 -0.5% 161 3475 Investment Premium -7 0 -8 -12 -12 0 0.0%
Total Use of Money and Property 50,159 18,384 56,699 93,191 119,851 26,660 28.6% Total Storm Drain Fund 50,159 18,384 56,699 93,191 119,851 26,660 28.6% 170 3308 Department of Treasury Forfeited Funds 4,650 0 0 0 0 0 N/A Total Fines and Foreitures 4,650 0 0 0 0 0 N/A
170 3401 Interest Income 11,831 4,136 11,808 24,018 26,239 2,221 9.2% 170 3450 Investment Discount 225 90 138 322 271 -51 -15.8% 170 3475 Investment Premium -5 -3 -2 -3 -3 0 0.0%
Total Use of Money and Property 12,051 4,223 11,944 24,337 26,507 2,170 8.9% Total Asset Seizure/Forft Fund 16,701 4,223 11,944 24,337 26,507 2,170 8.9% 180 3401 Interest Income 18 0 108 0 264 264 N/A
Total Use of Money and Property 18 0 108 0 264 264 N/A
180 3912 Fire Flow Fee 10,745 4,897 2,060 9,794 4,120 -5,674 -57.9% Total Other Revenue 10,745 4,897 2,060 9,794 4,120 -5,674 -57.9% Total Fire Protection Fund 10,763 4,897 2,168 9,794 4,384 -5,410 -55.2% 190 3401 Interest Income 17,754 5,632 20,385 32,277 43,583 11,306 35.0% 190 3426 Easement Cable 1-2nd Street 90,000 45,000 45,000 92,489 92,489 0 0.0% 190 3427 Easement Cable 2-Longfellow 54,000 36,000 36,000 72,000 72,000 0 0.0% 190 3428 Easement Cable 3-25th St 255,547 255,547 0 69,000 69,000 0 0.0% 190 3450 Investment Discount 333 121 238 432 450 18 4.2% 190 3475 Investment Premium -3 0 -3 -4 -4 0 0.0%
Total Use of Money and Property 417,631 342,300 101,620 266,194 277,518 11,324 4.3% Total RTI Undersea Cable Fund 417,631 342,300 101,620 266,194 277,518 11,324 4.3% 191 3401 Interest Income 11,001 3,622 10,359 17,835 24,755 6,920 38.8% 191 3426 Easement Agreement 202,000 184,000 0 0 0 0 N/A 191 3450 Investment Discount 215 87 124 239 256 17 7.1% 191 3475 Investment Premium -2 0 -2 -2 -3 -1 50.0%
Total Use of Money and Property 213,214 187,709 10,481 18,072 25,008 6,936 38.4% Total RTI Tidelands Fund 213,214 187,709 10,481 18,072 25,008 6,936 38.4% 301 3401 Interest Income 212,368 67,023 255,296 382,078 545,622 163,544 42.8% 301 3450 Investment Discount 3,805 1,412 2,980 5,115 5,634 519 10.1% 301 3475 Investment Premium -46 -46 -5 -49 -55 -6 12.2% Total Use of Money and Property 216,127 68,389 258,271 387,144 551,201 164,057 42.4% 301 3913 In-Lieu Fee/Street Pavement 10,117 5,422 0 0 0 0 N/A Total Other Revenue 10,117 5,422 0 0 0 0 N/A
Total Capital Improvement Fund 226,244 73,811 258,271 387,144 551,201 164,057 42.4% 10 847
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
313 3940 Cash Payments/Utility Undergrounding 0 0 -62,325 0 62,325 62,325 N/A Total Other Revenue 0 0 -62,325 0 62,325 62,325 N/A
Total Greenwich Village N Utility Undergrounding Fund 0 0 -62,325 0 62,325 62,325 N/A 609 3401 Interest Income 1,605 440 1,183 3,158 3,341 183 5.8% 609 3450 Investment Discount 20 1 14 42 34 -8 -19.0%
609 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 1,625 441 1,197 3,200 3,375 175 5.5% Total Bayview Dr Redemption Fund 1,625 441 1,197 3,200 3,375 175 5.5% 610 3401 Interest Income 60 21 65 120 142 22 18.3%
610 3450 Investment Discount 1 0 1 2 2 0 0.0%
610 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 61 21 66 122 144 22 18.0% Total Lower Pier Dist Redemption Fund 61 21 66 122 144 22 18.0% 611 3401 Interest Income 636 165 373 1,271 1,241 -30 -2.4% 611 3450 Investment Discount 8 0 5 17 13 -4 -23.5%
611 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 644 165 378 1,288 1,254 -34 -2.6% Total Beach Dr Assessment Dist Redemption Fund 644 165 378 1,288 1,254 -34 -2.6% 612 3401 Interest Income 89 30 95 176 208 32 18.2%
612 3450 Investment Discount 2 1 1 2 2 0 0.0%
612 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 91 31 96 178 210 32 18.0% Total Beach Dr Assessment Dist Reserve Fund 91 31 96 178 210 32 18.0% 617 3401 Interest Income 381 381 0 0 0 0 N/A
Total Use of Money and Property 381 381 0 0 0 0 N/A
Total Mrytle Ave Assessment Fund 381 381 0 0 0 0 N/A
618 3401 Interest Income -77 -77 0 0 0 0 N/A
Total Use of Money and Property -77 -77 0 0 0 0 N/A
Total Loma Drive Assessment Fund -77 -77 0 0 0 0 N/A
619 3401 Interest Income 291 100 312 579 682 103 17.8%
619 3450 Investment Discount 3 0 4 8 7 -1 -12.5%
619 3475 Investment Premium 0 0 0 0 0 0 N/A
Total Use of Money and Property 294 100 316 587 689 102 17.4% Total Bayview Dr Reserve Fund 294 100 316 587 689 102 17.4% 705 3880 Insurance Service Charges 3,114,147 1,557,078 1,796,886 3,593,757 3,593,757 0 0.0% Total Current Service Charges 3,114,147 1,557,078 1,796,886 3,593,757 3,593,757 0 0.0% 11 848
Revenue Detail Report
Mid Year 2023-24
Funds
Account
Code Account Name
2022-23
Actual
2022-23 YTD
Thru Dec
2023-24 YTD
Thru Dec
2023-24
Revised Budget
2023-24
Mid Year
Estimate
Increase /
(Decrease)
% Change
over 2023-24
Revised
Budget
705 3902 Refunds/Reimb Previous Years 36,256 11,038 15,348 0 16,662 16,662 N/A 705 3904 General Miscellaneous 1,194 1,194 0 0 0 0 N/A
Total Other Revenue 37,450 12,232 15,348 0 16,662 16,662 N/A Total Insurance Fund 3,151,597 1,569,310 1,812,234 3,593,757 3,610,419 16,662 0.5% 715 3822 Building Maintenance Service Charges 101,557 50,772 51,270 101,556 102,557 1,001 1.0% 715 3885 Comm Equip/Business Mach Charges 931,424 465,708 482,394 995,545 964,795 -30,750 -3.1% 715 3889 Vehicle/Equip Replacement Charges 961,152 480,576 500,502 997,303 1,001,004 3,701 0.4% Total Current Service Charges 1,994,133 997,056 1,034,166 2,094,404 2,068,356 -26,048 -1.2% 715 3901 Sale of Real/Personal Property 21,908 11,758 18,148 0 0 0 N/A Total Other Revenue 21,908 11,758 18,148 0 0 0 N/A
715 6866 Records Technology Fee 108,163 50,508 46,622 108,937 93,244 -15,693 -14.4% Total Current Services Charges (Continued) 108,163 50,508 46,622 108,937 93,244 -15,693 -14.4% Total Equipment Replacement Fund 2,124,204 1,059,322 1,098,936 2,203,341 2,161,600 -41,741 -1.9% Grand Total 65,590,171 27,373,438 28,379,682 66,815,180 70,157,575 3,342,395 5.0% 12 849
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
General Fund
New Positions or Position Reclassifications:

City Clerk 001-1121-4102 Regular Salaries $ 26,328
The City Clerk Department requests to adjust staffing by adding a full time Office Assistant. The Office Assistant position would replace two budgeted part time positions which are the one part-time Office Assistant and one part-time Intern.

The annual cost for a full time Office Assistant is $78,984. The pro-rated mid year budget request for the full time Office Assistant is $26,328 for March through June 2024 which would be offset by eliminating the current budget of the part-time office assistant and part-time intern.

City Clerk 001-1121-4112 Part Time / Temporary $ (20,103) If the above full time Office Assistant is approved, the part-time Office Assistant and part-time Intern budget would be removed and eliminated from the budget. The part-time/temporary budget would be reduced to only cover FY 2023-24 incurred expenditures.

City Manager 001-1201-4112 Part Time / Temporary $ 6,219 With multiple ongoing projects, the City Manager's Office is currently in need of an Intern to assist with development and implementation of City programs; public communications; management level special projects; research and analysis and more.

The pro-rated mid year budget request for the Intern for March through June 2024 would be $6,219.

Finance Admin 001-1202-4112 Part Time / Temporary $ 31,926 The Finance Department had a part-time Senior Account Clerk position that was eliminated in 2019-20 when reductions were made to the budget due to the Covid-19 pandemic. The department is requesting to add back a parttime 20 hour/week Senior Finance Analyst staff position to assist with the ongoing needs of the department, including budget, reporting, audit, and special projects. The previous Accounting Manager would fill this position.

The annual cost for a part-time Senior Finance Analyst is $76,624. The prorated mid year budget for the part-time Senior Finance Analyst from February to June 2024 would be $31,926.
1 Attachment 2
850
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Other Department Requests:

City Clerk 001-1121-4317 Conference Training $ (9,506)
Budget reduction of $9,506 as amount not needed for tuition reimbursement for the Deputy City Clerk.

Information Technology 001-1121-5402 Equipment more than $1,000 $ 6,335 The equipment currently used for the Spectrum Public, Educational, and Governmental (PEG) access channel is obsolete and Spectrum's technicians cannot assist with technical problems. Last October, Spectrum informed the City that the equipment would no longer be supported and has proposed upgrading the equipment capable of providing a fiber optic signal. Additionally with the upgrades, the PEG channel would be broadcast in HD which will improve the video quality.

Staff is requesting to approve one time capital expenditure Spectrum PEG Channel upgrades from reserved PEG funds.

Information Technology Restricted Fund Balance Restricted Fund Balance $ (6,335) Use PEG funds restricted in the General Fund's fund balance for the above equipment purchase.

Police Community Services 001-3302-5401 Equip - Less Than $1,000 $ 450 Staff is requesting to purchase 2 microchip readers to determine if an animal has a microchip in helping locate their owners. This is to replace the current microchip readers as one works intermittently and the other is obsolete.

Community Development 001-4101-4201 Contract Serv/Private $ (39,698) Decrease in contract costs to cover only the Planning Division required legal correspondence which includes mailing services, notary services and legal notices for the remainder of the fiscal year.

Community Development 001-4105-4201 Contract Serv/Private $ (98,566) Decrease in contract costs to cover only the vendors assisting the City with the zoning code update & Housing Element Zoning support for the remainder of the fiscal year.

Community Development 001-4201-4201 Contract Serv/Private $ (50,630) Decrease in contract costs to cover the Building Division vendors which provide STVR monitoring and online inspection scheduling services for the remainder of the fiscal year.

Community Resources 001-4601-4201 Contract Serv/Private $ 3,150 Due to the revised school schedule, the City will hold two Valley Park Day Camp excursions in June 2024.

Public Works 001-4601-4201 Contract Serv/Private $ 10,000 South Park Rooms 3 & 4 floor replacement costs have increased since the initial quote was obtained last year. Additional funds are needed to complete work as the floor is in poor condition.
2 851
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Public Works 001-4601-4201 Contract Serv/Private $ 21,000 South Park Room split air conditioner costs have increased since the initial quote was obtained last year. Additional funds are needed to complete work with contingency for unforeseen circumstances.

Community Resources 001-4604-4201 Contract Serv/Private $ (64,000) Budget reduction as the restart of the HB Concert series will happen in the next 2024-25 fiscal year in September 2024.

Total General Fund Requests $ (183,430)
State Gas Tax Fund
CIP 105 Annual Street
Improvements 115-8105-4201 Contract Serv/Private $ 2,460 CIP (Capital Improvement Project) 105 Annual Street Improvement budget is releasing Capital Improvement funds to be used for other projects (see below) and will use restricted funds instead.

Staff is requesting an additional $2,460 to cover this request.

CIP 112 Annual City Sidewalk
Improvements 115-8112-4201 Contract Serv/Private $ (70,069) Staff is requesting to release CIP 112 Annual City Sidewalk Improvement budget of $70,069 back to the fund as design and initial construction costs are only needed this 2023-24 fiscal year.

Total State Gas Tax Fund Requests $ (67,609)
Tyco Fund
CIP 417 Annual Storm Drain
Improvements 122-8417-4201 Contract Serv/Private $ (68,771) CIP 417 Annual Storm Drain Improvements is estimated to start bidding and construction in the next 2024-25 fiscal year. As such, funds are only needed for design this 2023-24 fiscal year which has been budgeted in other funds.

Staff is requesting to release CIP 417 budget of $68,771 back to the fund.

Total Tyco Fund Requests $ (68,771)
Park/Rec Facility Tax Fund
CIP 692 14th Street
Restrooms Rehabilitation 125-8692-4201 Contract Serv/Private $ (5,815) Staff is requesting to reduce the CIP 692 14th Street Restrooms Rehabilitation budget by $5,815 to offset the shortfall from the prior fiscal year.

Total Park/Rec Facility Tax Fund Requests $ (5,815)
3 852
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Prop C Fund
CIP 105 Annual Street
Improvements 146-8105-4201 Contract Serv/Private $ 183,169 CIP 105 Annual Street Improvement budget is releasing Capital Improvement funds to be used for other projects (see below) and will use restricted funds instead.

Staff is requesting an additional $183,169 to cover this request.

CIP 112 Annual City Sidewalk
Improvements 146-8112-4201 Contract Serv/Private $ (70,688) Staff is requesting to release CIP 112 Annual City Sidewalk Improvement budget of $70,688 back to the fund as design and initial construction costs are only needed this 2023-24 fiscal year.

Total Prop C Fund Requests $ 112,481
Measure R Fund
CIP 105 Annual Street
Improvements 147-8105-4201 Contract Serv/Private $ 498,354 CIP 105 Annual Street Improvement budget is releasing Capital Improvement funds to be used for other projects (see below) and will use restricted funds instead.

Staff is requesting an additional $498,354 to cover this request.

Total Measure R Fund Requests $ 498,354
Measure M Fund
CIP 105 Annual Street
Improvements 148-8105-4201 Contract Serv/Private $ 122,895 CIP 105 Annual Street Improvement budget is releasing Capital Improvement funds to be used for other projects (see below) and will use restricted funds instead.

Staff is requesting an additional $122,895 to cover this request.

Total Measure M Fund Requests $ 122,895
Grant Fund
Police 150-2124-4201 Contract Serv/Private $ 28,000
Staff is requesting $28,000 to budget the Mental Health and Wellness for Police Officers program funded by the Board of State Community Corrections state grant money received last fiscal year.

Community Development 150-4109-4102 Regular Salaries $ 15,000 Receive the California Automated Permit Processing Program (CalApp) State Grant. CalApp is an online platform that provides plan review and instantly issues permits for code-compliant residential photovoltaic (PV) systems. The State of California is obligating that all jurisdictions within California establish an online solar permitting system.

The City of Hermosa Beach is currently approved for grant funds of $40,000. The project timeline is planned to begin in March 2024 which will be initially followed by City staff training. Afterwards, training for local installers will started by June 2024. It is anticipated that the platform would be online in September 2024.
4 853
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Community Development 150-4109-4201 Contract Serv/Private $ 20,000 CalApp Grant budget for integration and programing services provided by third party consultant.

Community Development 150-4109-4305 Office Operating Supplies $ 2,500 CalApp Grant budget for 2 Building Inspectors iPads to utilize the online access to the permitting and paperless CalApp program
Community Development 150-4109-5402 Equipment more than $1,000 $ 2,500 Purchase of in office technologies to facilitate the customer use of the system. "Counter" access for customers to be trained on the program and to submit applications.

Parks 150-6101-4309 Maintenance Materials $ 2,000
Staff is requesting $2,000 to cover the Clark Field bottle filling station funded by West Basin Municipal Water grant money received last fiscal year.

Total Grants Fund Requests $ 70,000
Sewer Fund
Public Works 160-3102-5402 Equipment more than $1,000 $ 10,183 Request to reappropriate budget of $10,183 for last fiscal year equipment purchase orders that were received in the current fiscal year.

Total Sewer Fund Requests $ 10,183
RTI Undersea Cable Fund
Public Works 190-8417-4201 Contract Serv/Private $ (356,376) CIP 417 Annual Storm Drain Improvements is estimated to start bidding and construction in the next 2024-25 fiscal year. As such, funds are only needed for design this 2023-24 fiscal year.

Staff is requesting that that excess budget of $356,376 be transferred to be used for CIP 699 Parking Structure Lot C Improvements as described below.

This budget transfer is within the unrestricted RTI Undersea Cable Funds.

Public Works 190-8699-4201 Contract Serv/Private $ 356,376 CIP 699 Parking Structure Lot C is estimated to start construction this 2023- 24 fiscal year.

Staff is requesting $356,376 budget transferred from the above CIP 417 Annual Storm Drain Improvements be used to cover this request. This budget transfer is within the unrestricted RTI Undersea Cable Funds.

Public Works 190-8699-4201 Contract Serv/Private $ 20,946 CIP 699 Parking Structure Lot C is estimated to start construction this 2023- 24 fiscal year as described above.

Staff is requesting an additional $20,946 to cover this request.

Total RTI Undersea Cable Fund Requests $ 20,946
5 854
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
RTI Tidelands Fund
CIP 417 Annual Storm Drain
Improvements 191-8417-4201 Contract Serv/Private $ (1,685) CIP 417 Annual Storm Drain Improvements is estimated to start bidding and construction in the next 2024-25 fiscal year. As such, funds are only needed for design this 2023-24 fiscal year which has been budgeted in other funds.

Staff is requesting to release CIP 417 budget of $1,685 back to the fund.

CIP 699 Parking Structure Lot
C 191-8699-4201 Contract Serv/Private $ (55,000)
CIP 699 Parking Structure Lot C construction funds have been budgeted in other funds.

Staff is requesting to release CIP 699 budget of $55,000 back to the fund.

Total RTI Tidelands Fund Requests $ (56,685)
Capital Improvement Fund
CIP 105 Annual Street
Improvements 301-8105-4201 Contract Serv/Private $ (428,430) Request to transfer budget of $428,430 from project CIP 105 Street Improvement to CIP 502 Greenbelt Pedestrian Trail. CIP 105 is estimated to start construction in the next 2024-25 fiscal year and funds are only needed for design this 2023-24 fiscal year. CIP 105 construction funds has been budgeted above using restricted Gas Tax, Prop C, Measure R & Measure M funds.

Staff is requesting that that excess budget of $428,430 be transferred to be used for CIP 502 Greenbelt Pedestrian Trail as described below.

CIP 502 Greenbelt Pedestrian
Trail 301-8502-4201 Contract Serv/Private $ 428,430
CIP 502 Greenbelt Pedestrian Trail is estimated to start construction this 2023-24 fiscal year.

Staff is requesting $428,430 budget transferred from the above CIP 105 Capital Improvement funds be used to cover this request.

CIP 105 Annual Street
Improvements 301-8105-4201 Contract Serv/Private $ (286,768) Request to transfer budget of $286,768 from project CIP 105 Street Improvement to CIP 699 Parking Structure Lot C. CIP 105 is estimated to start construction in the next 2024-25 fiscal year and funds are only needed for design this 2023-24 fiscal year. CIP 105 construction funds has been budgeted above using restricted Gas Tax, Prop C, Measure R & Measure M funds.

Staff is requesting that that excess budget of $286,768 be transferred to be used for CIP 699 Parking Structure Lot C as described below. 6 855
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
CIP 699 Parking Structure Lot
C 301-8699-4201 Contract Serv/Private $ 286,768
CIP 699 Parking Structure Lot C is estimated to start construction this 2023- 24 fiscal year.

Staff is requesting $286,768 budget transferred from the above CIP 105 Capital Improvement funds be used to cover this request.

CIP 699 Parking Structure Lot
C 301-8699-4201 Contract Serv/Private $ 418,098
CIP 699 Parking Structure Lot C is estimated to start construction this 2023- 24 fiscal year.

Staff is requesting an additional $418,098 to cover this request.

CIP 195 City Sidewalk
Improvements 301-8195-4201 Contract Serv/Private $ 18,505 Request to reappropriate budget of $18,505 from last fiscal year to cover the CIP 195 City Sidewalk Improvements that was completed this fiscal year.

CIP 760 Tree Well Grates 301-8760-4201 Contract Serv/Private $ 27,332 Request to reappropriate budget of $27,332 from last fiscal year to cover the CIP 760 Tree Well Grates that was completed this fiscal year.

Total Capital Improvement Fund Requests $ 463,935
Insurance Fund
Human Resources 705-1209-4201 Contract Serv/Private $ 20,102 As a result of the City's transition to California Joint Powers Insurance Authority (CJPIA) this fiscal year, the City is currently working with two thirdparty-administrators (TPA) for general liability claims administrative services. All general liability claims with a date of loss on or after July 1, 2023 are assigned to the new TPA, Carl Warren. All claims with a date of loss on or before June 30, 2023 are assigned to the prior TPA, AdminSure.

The City has received additional claims/lawsuits that have been assigned to AdminSure. Staff recommends the approval of an additional $20,102 to cover AdminSure claims administration fees for the remainder of the fiscal year.

Human Resources 705-1210-4201 Contract Serv/Private $ 18,692 As a result of the City's transition to California Joint Powers Insurance Authority (CJPIA), the initial Auto / Property / Bond insurance budget was an estimate provided by CJPIA. The actual amounts invoiced were more that the estimate provided as CJPIA.

Staff recommends the approval of an additional $18,692 to cover the program premium amounts for the remainder of the fiscal year. 7 856
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Human Resources 705-1217-4201 Contract Serv/Private $ 43,125 As a result of the City's transition to California Joint Powers Insurance Authority (CJPIA) this fiscal year, the City is currently working with two thirdparty-administrators (TPA) for general liability claims administrative services. All general liability claims with a date of loss on or after July 1, 2023 are assigned to the new TPA, Athens. All claims with a date of loss on or before June 30, 2023 are assigned to the prior TPA, AdminSure.

Staff recommends the approval of an additional $43,125 to cover claims administration fees with AdminSure for the remainder of the fiscal year.

Total Insurance Fund Requests $ 81,919
Equipment Replacement Fund
Information Technology 715-1206-4201 Contract Serv/Private $ 1,500 Bluebeam is a program specifically designed for handling large scale graphic documents such as plans and has electronic plan checking and other field specific functionalities built into it, making Bluebeam a better tool for engineers and planners than Adobe Acrobat. In the past 3 years of using this product, Public Works has found the use of Bluebeam improves their workflows, especially for Right of Way permit plan checks.

Additionally, Public Works is looking to implement electronic reviews in Bluebeam Studio for all CIPs. To be able to track all comments made on design documents and have each engineer participate, they need each user to have their own account. 5 additional licenses are needed to give the remaining positions involved in CIPs and plan review access to this software.

Staff recommends approving the recurring purchase of 5 Bluebeam licenses for Public Works Engineering staff.

Information Technology 715-1206-5402 Equip-More than $1,000 $ 8,400 Approve funds to cover the costs of computer replacement for the Police Department and Community Services Division to keep replacement on track. Overall cost per computer has increased as new technologies implemented by the City require higher minimum specifications. 8 857
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Community Services 715-3302-5402 Equip-More than $1,000 $ 3,000 Currently, the Base 3 Building doesn't have any surveillance cameras monitoring the South side which can view the tennis courts. There has been several incidents that has previously occurred at the tennis courts and the City was unable to review video surveillance.

Due to maintaining a safe environment, Staff is requesting funds to purchase cameras to be placed on the South side of Base 3 for full coverage of that area.

Community Services 715-3302-5402 Equip-More than $1,000 $ 47,129 Currently Community Service Officers are using 16 parking citation handheld devices that are more than 5 years old. The Officers have been experiencing technical issues with the devices such as being unresponsive to user requests or not holding a battery charge. The devices have been repaired or replaced but the number out of service units have begun to impact the job performance of the Community Service Division on a daily basis.

Staff is requesting $47,129 to replace the current non functional handhelds with 16 new working devices.

Community Development 715-4201-4201 Contract Serv/Private $ (111,458) Decrease in contract costs to cover the Accela consulting services for the remainder of the fiscal year.

Total Equipment Replacement Fund Requests $ (51,429)
9 858
2023-24 Mid Year Budget Review
Additional Appropriations Report
Functions Name Account String Account Name
2023-24 Mid Year
Estimate Description
Various CIPs
New Position Salary Range Adjustments:

Various CIPs Various CIPs Regular Salaries $ 41,501
The Public Works Department was approved for three full-time Senior Engineer positions to assist the department with Capital Improvement Projects (CIPs). The department has been unable to fill one remaining vacant Senior Engineer position due to high demand in the labor market.

The Senior Engineer position requires a professional engineering license and is a critical role in the department to advance operational needs including the planning and design of projects, department programs and activities as well as leading, mentoring, and reviewing the work of junior staff and other design professionals. The department evaluated and compared the position and salary range to comparable classifications to ensure competitiveness with other comparable cities.

Upon completing a salary survey of the comparable classifications for the Senior Engineer position, staff recommends an adjustment to the five-step salary range from $9,640 to $11,717 per month to an adjusted salary range of $11,991 to $14,576.

The annual cost of the salary range adjustment for the Senior Engineer position would be $124,503. The pro-rated mid year budget for the Senior Engineer salary range adjustment from March 2024 to June 2024 would be $41,501. The cost would be paid by ongoing CIP projects that are already budgeted.

Total Various CIP Salary Adjustment Requests $ 41,501
10 859
Budget Transfers
2023-24 Midyear Budget

FUND / DESCRIPTION TRANSFERS IN TRANSFERS OUT
GENERAL FUND:

From Lighting/Landscaping Fund , Administration $11,054 From State Gas Tax Fund, Street Maintenance, Traffic Safety Operations $357,865 From Prop A Open Space Fund, Parks Maintenance Allocation $44,963 From Beach Drive Assessment District Administrative Expense Fund, Agency Administration $2,500 From Bayview Drive Administrative Expense Fund, Agency Administration $3,000 From American Rescue Plan Act Fund,For Public Safety Costs $997,769 From CARES Act Fund, Use unrestricted funds previously replaced by CARES Act funding to create a reserve for COVID-19 FEMA claims $295,362
To Lighting/Landscaping Fund, Cover Deficit (2023-24 Adopted Budget) $468,524 To Lighting/Landscaping Fund, Cover Deficit (2023-24 Midyear Budget) $6,374 To Equipment Replacement Fund, 2021-22 Unspent Funds to Bring Balance to Funding Goal (2023-24 Adopted Budget) $1,719,608
To Equipment Replacement Fund, 2022-23 Unspent Funds to Bring Balance to Funding Goal (2023-24 Midyear Budget) $198,866
To Capital Improvement Fund, 2021-22 Unspent Funds for Future CIPs (2023-24 Adopted Budget) $883,499
To Capital Improvement Fund, 2022-23 Unspent Funds (2023-24 Midyear Budget) $1,076,441 To Insurance Fund, 2022-23 Unspent Funds to bring up to funding goal (2023-24 Midyear Budget) $1,419,308
To Lease Revenue Bond Fund, Bond Payment $664,416
To Storm Drain Fund, From Utility User Tax $700,000
GENERAL FUND TOTALS $1,712,513 $7,137,036
LIGHTING/LANDSCAPING FUND:

To General Fund, Administration $11,054
From General Fund, Cover Deficit (2023-24 Midyear Budget) $6,374 From General Fund, Cover Deficit (2023-24 Adopted Budget) $468,524 LIGHTING/LANDSCAPING FUND TOTALS $474,898 $11,054
STATE GAS TAX FUND:

To General Fund, Street Maintenance, Traffic Safety Operations $357,865 STATE GAS TAX FUND TOTALS $0 $357,865
PROP A OPEN SPACE FUND:

To General Fund, Parks Maintenance Allocation $44,963
PROP A OPEN SPACE FUND TOTALS $0 $44,963
BAYVIEW DRIVE ADMINISTRATIVE EXPENSE FUND:

To General Fund, Agency Administration $3,000
BAYVIEW DRIVE ADMINISTRATIVE EXPENSE FUND TOTALS $0 $3,000 BEACH DRIVE ASSESSMENT DISTRICT ADMINISTRATIVE EXPENSE FUND:

To General Fund, Agency Administration $2,500
BEACH DRIVE ASSESSMENT DISTRICT ADMINISTRATIVE EXPENSE FUND TOTALS $0 $2,500 AMERICAN RESCUE PLAN ACT FUND:

To General Fund, For Public Safety Costs $997,769
AMERICAN RESCUE PLAN ACT FUND TOTALS $0 $997,769
1 Attachment 3
860
Budget Transfers
2023-24 Midyear Budget
CARES ACT FUND:

To General Fund, Use unrestricted funds previously replaced by CARES Act funding to create a reserve for COVID-19 FEMA Claims $295,362
CARES ACT FUND TOTALS $0 $295,362
STORM DRAIN FUND:

From General Fund, From Utility User Tax $700,000
STORM DRAIN FUND TOTALS $700,000 $0
LEASE REVENUE BOND FUND:

From General Fund, For Bond Payments $664,416
LEASE REVENUE BOND FUND TOTALS $664,416 $0

CAPITAL IMPROVEMENT FUND
From General Fund, 2021-22 Unspent Funds for Future CIPs (2023-24 Adopted Budget) $883,499 From General Fund, 2022-23 Unspent Funds for Future CIPs (2023-24 Midyear Budget) $1,076,441 CAPITAL IMPROVEMENT FUND TOTALS $1,959,940 $0
INSURANCE FUND:

From General Fund, 2022-23 Unspent Funds to bring up to funding goal (2023-24 Midyear Budget) $1,419,308
INSURANCE FUND TOTALS $1,419,308 $0

EQUIPMENT REPLACEMENT FUND
From General Fund, 2021-22 Unspent Funds Funds to Bring Balance to Funding Goal (2023- 24 Adopted Budget) $1,719,608
From General Fund, 2022-23 Unspent Funds Funds to Bring Balance to Funding Goal (2023- 24 Midyear Budget) $198,866
EQUIPMENT REPLACEMENT FUND TOTALS $1,918,474 $0
GRAND TOTALS $8,849,549 $8,849,549
2 861
Major Fund

LIGHTING

GENERAL LANDSCAPING STATE GAS

FUND FUND TAX FUND
001 105 115

ESTIMATED REVENUE
Taxes $39,120,676 $461,555 $0
Licenses/Permits $765,742 $0 $0
Fines/Forfeitures $1,621,950 $0 $0
Use of Money/Property $1,480,603 $3,134 $43,602
Intergovernmental/State $220,738 $0 $1,005,888
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $9,293,427 $0 $0
Other Revenue $157,086 $0 $0
TOTAL ESTIMATED REVENUE $52,660,222 $464,689 $1,049,490 INTERFUND TRANSFERS IN $1,712,513 $474,898 $0
ESTIMATED FUNDS AVAILABLE $54,372,735 $939,587 $1,049,490

FUND BALANCE
7/1/23 $19,150,935 $32,717 $785,560
TOTAL FUNDS AVAILABLE $73,523,670 $972,304 $1,835,050

APPROPRIATIONS
Operating Budget $50,584,611 $961,250 $50,000
Capital Outlay $123,483 $0 $0
Capital Improvements $247,389 $0 $1,427,185
TOTAL APPROPRIATIONS $50,955,483 $961,250 $1,477,185
INTERFUND TRANSFERS OUT $7,137,036 $11,054 $357,865
TOTAL APPROPRIATIONS/TRANSFERS OUT $58,092,519 $972,304 $1,835,050

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $15,431,151 (a) $0 $0
(a) CLASSIFICATIONS OF FUND BALANCE:

Restricted Previous Balance Current Balance
General Plan Maintenance Fee $149,099 $0
PEG Grants $204,414 $202,118
CASP Fees $66,700 $75,822
Marquee Donation $50,000 $50,000
Committed
In Lieu Fee/ Parking Facility $404,600 $404,600
Assigned
Contingencies $9,979,017 $10,116,922
Reserve for FEMA Claims $1,030,568 $1,030,568
2022-23 Unspent Funds $0 $0
2023-24 Midyear Unspent Funds $0 $729,769
Retirement Rate Stabilization $1,021,575 $1,021,575
Retirement Trust $829,060 $829,060
Compensated Absences $294,170 $294,170
Prop A Fund Exchange- Engineer Funding $58,546 $58,546
$128,001 $128,001
22-23 Prop A Fund Exchange $490,000 $490,000
CIP Carry Forward $0 $0
$14,699,451 $15,431,151
Available Fund Balance 6/30/24 $0 $0 -

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
21-22 Prop A Fund Exchange- Engineer
Special Revenue Funds
Attachment 4
1 862
PROP A
AB 939 OPEN SPACE TYCO

FUND FUND FUND
117 121 122

ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $13,342 $0 $446,119
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $96,123 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $64,000 $0 $0
Other Revenue $0 $0 $0
TOTAL ESTIMATED REVENUE $77,342 $96,123 $446,119
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $77,342 $96,123 $446,119

FUND BALANCE
7/1/23 $291,271 ($30,603) $1,967,398
TOTAL FUNDS AVAILABLE $368,613 $65,520 $2,413,517

APPROPRIATIONS
Operating Budget $138,526 $0 $0
Capital Outlay $0 $0 $0
Capital Improvements $0 $0 $2,395,285
TOTAL APPROPRIATIONS $138,526 $0 $2,395,285
INTERFUND TRANSFERS OUT $0 $44,963 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $138,526 $44,963 $2,395,285

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $230,087 $20,557 $18,232 Available Fund Balance 6/30/24 $230,087 $20,557 $18,232

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
2 863

PARK/ BAYVIEW DRIVE

RECREATION DISTRICT ADMIN

FACILITY TAX EXPENSE

FUND FUND
125 135

ESTIMATED REVENUE
Taxes $0 $0
Licenses/Permits $0 $0
Fines/Forfeitures $0 $0
Use of Money/Property $15,487 $275
Intergovernmental/State $0 $0
Intergovernmental/County $0 $0
Intergovernmental/Federal $0 $0
Current Service Charges $0 $0
Other Revenue $60,966 $5,000
TOTAL ESTIMATED REVENUE $76,453 $5,275
INTERFUND TRANSFERS IN $0 $0
ESTIMATED FUNDS AVAILABLE $76,453 $5,275

FUND BALANCE
7/1/23 $343,880 $5,517
TOTAL FUNDS AVAILABLE $420,333 $10,792

APPROPRIATIONS
Operating Budget $0 $1,900
Capital Outlay $0 $0
Capital Improvements $417,546 $0
TOTAL APPROPRIATIONS $417,546 $1,900
INTERFUND TRANSFERS OUT $0 $3,000
TOTAL APPROPRIATIONS/TRANSFERS OUT $417,546 $4,900

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/23 $2,787 $5,892
Available Fund Balance 6/30/24 $2,787 $5,892

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
3 864

BEACH DRIVE DISTRICT

ADMINISTRATIVE COMMUNITY / DEV PROPOSITION PROPOSITION

EXPENSE BLOCK GRANT A C

FUND FUND FUND
139 140 145 146

ESTIMATED REVENUE
Taxes $0 $0 $554,063 $459,580
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $193 $0 $18,113 $75,357
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $162,412 $0 $0
Current Service Charges $0 $0 $1,139 $0
Other Revenue $4,000 $0 $0 $0
TOTAL ESTIMATED REVENUE $4,193 $162,412 $573,315 $534,937 INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $4,193 $162,412 $573,315 $534,937

FUND BALANCE
7/1/23 $3,702 $3,192 $118,121 $1,554,668
TOTAL FUNDS AVAILABLE $7,895 $165,604 $691,436 $2,089,605

APPROPRIATIONS
Operating Budget $1,500 $0 $177,857 $300,000
Capital Outlay $0 $0 $0 $0
Capital Improvements $0 $162,412 $0 $1,789,605
TOTAL APPROPRIATIONS $1,500 $162,412 $177,857 $2,089,605 INTERFUND TRANSFERS OUT $2,500 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OU $4,000 $162,412 $177,857 $2,089,605

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $3,895 $3,192 $513,579 $0 Available Fund Balance 6/30/24 $3,895 $3,192 $513,579 $0

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
4 865

MEASURE R MEASURE M MEASURE W GRANT

FUND FUND FUND FUND
147 148 149 150

ESTIMATED REVENUE
Taxes $344,685 $390,643 $157,832 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $38,364 $50,100 $19,803 $0
Intergovernmental/State $0 $0 $0 $3,348,413
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $1,099,865
Current Service Charges $0 $0 $0 $0
Other Revenue $0 $0 $0 $65,595
TOTAL ESTIMATED REVENUE $383,049 $440,743 $177,635 $4,513,873 INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $383,049 $440,743 $177,635 $4,513,873

FUND BALANCE
7/1/23 $987,277 $1,051,160 $540,662 ($1,185,409)
TOTAL FUNDS AVAILABLE $1,370,326 $1,491,903 $718,297 $3,328,464

APPROPRIATIONS
Operating Budget $0 $0 $0 $1,437,547
Capital Outlay $0 $0 $0 $0
Capital Improvements $1,346,199 $1,470,907 $475,110 $1,832,149 TOTAL APPROPRIATIONS $1,346,199 $1,470,907 $475,110 $3,269,696 INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $1,346,199 $1,470,907 $475,110 $3,269,696

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $24,127 $20,996 $243,187 $58,768 Available Fund Balance 6/30/24 $24,127 $20,996 $243,187 $58,768

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
5 866
2023-24

SUPPLEMENTAL

AIR QUALITY LAW ENFORCEMENT AMERICAN RESCUE

IMPROVEMENT SERVICES FEMA CARES ACT PLAN ACT

FUND FUND FUND FUND FUND
152 153 157 158 159

ESTIMATED REVENUE
Taxes $0 $138,525 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0 $0
Use of Money/Property $4,902 $21,054 $0 $0 $0
Intergovernmental/State $25,000 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0 $0
Other Revenue $0 $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $29,902 $159,579 $0 $0 $0
INTERFUND TRANSFERS IN $0 $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $29,902 $159,579 $0 $0 $0

FUND BALANCE
7/1/23 $126,529 $439,523 ($922,424) $295,362 $997,769
TOTAL FUNDS AVAILABLE $156,431 $599,102 ($922,424) $295,362 $997,769

APPROPRIATIONS
Operating Budget $10,000 $131,990 $0 $0 $0
Capital Outlay $50,000 $123,300 $0 $0 $0
Capital Improvements $0 0 $0 $0 $0
TOTAL APPROPRIATIONS $60,000 $255,290 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $295,362 $997,769
TOTAL APPROPRIATIONS/TRANSFERS OUT $60,000 $255,290 $0 $295,362 $997,769

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $96,431 $343,812 ($922,424) $0 $0 Available Fund Balance 6/30/24 96,431 $343,812 ($922,424) $0 $0

CITY OF HERMOSA BEACH BUDGET SUMMARY
2023-24
Midyear Budget
Special Revenue Funds
6 867

ASSET SEIZURE/

SEWER STORM DRAIN FORFEITURE

FUND FUND FUND
160 161 170

ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $160,461 $119,851 $26,507
Intergovernmental/State $0 $0 $0
Intergovernmental/County $25,000 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $1,272,278 $0 $0
Other Revenue $0 $0 $0
TOTAL ESTIMATED REVENUE $1,457,739 $119,851 $26,507
INTERFUND TRANSFERS IN $0 $700,000 $0
ESTIMATED FUNDS AVAILABLE $1,457,739 $819,851 $26,507

FUND BALANCE
7/1/23 $3,625,350 $2,694,495 $559,860
TOTAL FUNDS AVAILABLE $5,083,089 $3,514,346 $586,367

APPROPRIATIONS
Operating Budget $21,828 $555,325 $7,480
Capital Outlay $0 $0 $600
Capital Improvements $4,062,600 $2,139,525 $0
TOTAL APPROPRIATIONS $4,084,428 $2,694,850 $8,080
INTERFUND TRANSFERS OUT $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $4,084,428 $2,694,850 $8,080

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $998,661 $819,496 $578,287 Available Fund Balance 6/30/24 $998,661 $819,496 $578,287

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
7 868
RTI

FIRE RTI UNDERSEA CABLE

PROTECTION UNDERSEA CABLE TIDELANDS

FUND FUND FUND
180 190 191

ESTIMATED REVENUE
Taxes $0 $0 $0
Licenses/Permits $0 $0 $0
Fines/Forfeitures $0 $0 $0
Use of Money/Property $264 $277,518 $25,008
Intergovernmental/State $0 $0 $0
Intergovernmental/County $0 $0 $0
Intergovernmental/Federal $0 $0 $0
Current Service Charges $0 $0 $0
Other Revenue $4,120 $0 $0
TOTAL ESTIMATED REVENUE $4,384 $277,518 $25,008
INTERFUND TRANSFERS IN $0 $0 $0
ESTIMATED FUNDS AVAILABLE $4,384 $277,518 $25,008

FUND BALANCE
7/1/23 $4,463 $885,423 $555,643
TOTAL FUNDS AVAILABLE $8,847 $1,162,941 $580,651

APPROPRIATIONS
Operating Budget $0 $0 $0
Capital Outlay $0 $0 $0
Capital Improvements $0 $1,162,941 $518,715
TOTAL APPROPRIATIONS $0 $1,162,941 $518,715
INTERFUND TRANSFERS OUT $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $1,162,941 $518,715

DEBT SERVICE PAYMENT
ESTIMATED FUND BALANCE 6/30/24 $8,847 $0 $61,936
Available Fund Balance 6/30/24 $8,847 $0 $61,936

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds
8 869
Debt Service Fd

BAYVIEW DRIVE LOWER PIER

CAPITAL GREENWICH DISTRICT DISTRICT

LEASE REVENUE IMPROVEMENT VILLAGE N UNDERGROUND REDEMPTION REDEMPTION

BOND FUND FUND UTILITIES FUND FUND
201 301 313 609 610

ESTIMATED REVENUE
Taxes $0 $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0 $0
Use of Money/Property $0 $551,201 $0 $3,375 $144
Intergovernmental/State $0 $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0 $0
Other Revenue $0 $0 ($62,325) $0 $0
TOTAL ESTIMATED REVENUE $0 $551,201 ($62,325) $3,375 $144 INTERFUND TRANSFERS IN $664,416 $1,959,940 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $664,416 $2,511,141 ($62,325) $3,375 $144

FUND BALANCE
7/1/23 $95,223 $12,331,476 $120,898 $100,490 $3,144
TOTAL FUNDS AVAILABLE $759,639 $14,842,617 $58,573 $103,865 $3,288

APPROPRIATIONS
Operating Budget $0 $83,675 $0 $0 $0
Capital Outlay $0 $181,836 $0 $0 $0
Capital Improvements $0 $9,821,196 $0 $0 $0
TOTAL APPROPRIATIONS $0 $10,086,707 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $10,086,707 $0 $0 $0 DEBT SERVICE PAYMENT $728,600 $0 $0 $0 $0
ESTIMATED FUND BALANCE 6/30/24 $31,039 $4,755,910 $58,573 $103,865 $3,288 Reserved for New Corporate City Yard Construction $1,889,278 (with contingency)
Reserve for Capital Facilities $841,393
Available Fund Balance 6/30/24 $31,039 $2,025,239 $58,573 $103,865 $3,288

CITY OF HERMOSA BEACH BUDGET SUMMARY
Midyear Budget
2023-24
Special Revenue Funds Agency Funds
9 870

BEACH DRIVE BEACH DRIVE MYRTLE LOMA

DISTRICT DISTRICT AVENUE DRIVE

REDEMPTION RESERVE ASSESSMENT ASSESSMENT

FUND FUND FUND FUND
611 612 617 618

ESTIMATED REVENUE
Taxes $0 $0 $0 $0
Licenses/Permits $0 $0 $0 $0
Fines/Forfeitures $0 $0 $0 $0
Use of Money/Property $1,254 $210 $0 $0
Intergovernmental/State $0 $0 $0 $0
Intergovernmental/County $0 $0 $0 $0
Intergovernmental/Federal $0 $0 $0 $0
Current Service Charges $0 $0 $0 $0
Other Revenue $0 $0 $0 $0
TOTAL ESTIMATED REVENUE $1,254 $210 $0 $0
INTERFUND TRANSFERS IN $0 $0 $0 $0
ESTIMATED FUNDS AVAILABLE $1,254 $210 $0 $0

FUND BALANCE
7/1/23 $43,086 $1,577 $51,709 $90,230
TOTAL FUNDS AVAILABLE $44,340 $1,787 $51,709 $90,230

APPROPRIATIONS
Operating Budget $0 $0 $0 $0
Capital Outlay $0 $0 $0 $0
Capital Improvements $0 $0 $0 $0
TOTAL APPROPRIATIONS $0 $0 $0 $0
INTERFUND TRANSFERS OUT $0 $0 $0 $0
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $0 $0 $0

ADJUST FUND BALANCE FOR

FIXED ASSET ADDITIONS
ESTIMATED FUND BALANCE 6/30/24 $44,340 $1,787 $51,709 $90,230 Available Fund Balance 6/30/24 $44,340 $1,787 $51,709 $90,230 Midyear Budget

CITY OF HERMOSA BEACH BUDGET SUMMARY
2023-24
Agency Funds
10 871

BAYVIEW

DRIVE EQUIPMENT

RESERVE INSURANCE REPLACEMENT TOTAL

FUND FUND FUND (MEMORANDUM
619 705 715 ONLY)

ESTIMATED REVENUE
Taxes $0 $0 $0 $41,627,559
Licenses/Permits $0 $0 $0 $765,742
Fines/Forfeitures $0 $0 $0 $1,621,950
Use of Money/Property $689 $0 $0 $3,396,930
Intergovernmental/State $0 $0 $0 $4,600,039
Intergovernmental/County $0 $0 $0 $121,123
Intergovernmental/Federal $0 $0 $0 $1,262,277
Current Service Charges $0 $3,593,757 $2,161,600 $16,386,201 Other Revenue $0 $16,662 $18,148 $269,252
TOTAL ESTIMATED REVENUE $689 $3,610,419 $2,179,748 $70,051,074 INTERFUND TRANSFERS IN $0 $1,419,308 $1,918,474 $8,849,549 ESTIMATED FUNDS AVAILABLE $689 $5,029,727 $4,098,222 $78,900,622

FUND BALANCE
7/1/23 $4,823 $1,879,001 $9,642,399 $59,997,404
TOTAL FUNDS AVAILABLE $5,512 $6,908,728 $13,740,621 $138,146,719

APPROPRIATIONS
Operating Budget $0 $3,908,728 $2,783,517 $61,155,734
Capital Outlay $0 $0 $1,690,858 $2,170,077
Capital Improvements $0 $0 $0 $29,268,764
TOTAL APPROPRIATIONS $0 $3,908,728 $4,474,375 $92,594,575 INTERFUND TRANSFERS OUT $0 $0 $0 $8,849,549
TOTAL APPROPRIATIONS/TRANSFERS OUT $0 $3,908,728 $4,474,375 $101,444,124 DEBT SERVICE PAYMENT $728,600
ADJUST FUND BALANCE FOR $1,690,858 $1,690,858
FIXED ASSET ADDITIONS 2
ESTIMATED FUND BALANCE 6/30/24 $5,512 $3,000,000 $10,957,104 $37,664,853 Designated Building Maintenance Funds $551,840
Investment in Fixed Assets $5,728,229
Assigned reserve for Police Department Radio Equipment/South Bay $30,000 Interoperability Project.

Records Technology Fee $754,186
Assigned reserve for Accounting ERP $333,645
Available Fund Balance 6/30/24 $5,512 $3,000,000 $3,559,204 $12,105,131 Midyear Budget

CITY OF HERMOSA BEACH BUDGET SUMMARY
2023-24
Agency Fund Internal Service Funds
11 872
FY 2023-2024 CITY COUNCIL CONFERENCE/TRAINING BUDGET SUMMARY

CONFERENCE/TRAINING MASSEY FRANCOIS SAEMANN DETOY JACKSON TOTAL INDEPENDENT CITIES ASSOCIATION SUMMER SEMINAR $2,277.94 (7/28/23 - 7/30/23)
CALIFORNIA CONTRACT CITIES FALL EDUCATION SUMMIT $75.00 (9/7/24 - 9/10/24)
LEAGUE OF CALIFORNIA CITIES ANNUAL CONFERENCE $2,022.67 $2,184.21 (9/20/23 - 9/22/23)
(Expenses have not been finalized)
LEAGUE OF CALIFORNIA CITIES DIVISION DINNER AT ANNUAL CONFERENCE $75.00 $75.00 (9/20/23)
9TH ANNUAL SOUTH BAY ECONOMIC FORECAST $151.23
(10/26/24)
UNITED STATES CONFERENCE OF MAYORS WINTER MEETING $3,700.59 (1/16/24 - 1/20/24)
(Expenses have not been finalized)
INDEPENDENT CITIES ASSOCIATION WINTER SEMINAR $1,650.05 $1,772.29 (2/1/24 - 2/4/24)
(Expenses have not been finalized)

SOUTHERN CA ASSOCIATION OF GOVERNMENTS REGIONAL CONFERENCE AND GENERAL ASSEMBLY (5/2/24 - 5/3/24)

CALIFORNIA CONTRACT CITIES ASSOCIATION ANNUAL MUNICIPAL SEMINAR (5/16/24 - 5/19/24)

UNITED STATES CONFERENCE OF MAYORS ANNUAL MEETING
(6/20/24 - 6/23/24)
$3,851.82 $2,097.67 $3,909.26 $0.00 $4,125.23 $13,983.98 BUDGET: $28,000.00
BALANCE REMAINING: $14,016.02
Attachment 6
873

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Street and Highway Improvements 115-8105-4201 148-8105-4201
301-8105-4201
PROJECT NO./TITLE: CIP 105 Annual Street Improvements
PROJECT DESCRIPTION:

This project provides for pavement rehabilitation
of various streets throughout the City. The project
will also repair/replace deteriorated portions of
sidewalk, curb and gutter, and curb ramps. The
work will be performed following the sewer and
storm drain repairs identified in the Sewer and
Storm Drain Master Plans.

STATUS: Conceptual Planning
Staff is reviewing pavement management plan and
developing list of priority segments to include in the
scope of the project.

JUSTIFICATION:

Annual street resurfacing projects are necessary
to maintain and improve the City’s Pavement
Condition Index.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $300,000 115 State Gas Tax Fund $566,580
Construction $1,241,680 148 Measure M Fund $41,210
Construction Management/Inspection $91,590 301 Capital Improvement Fund $990,000 Two Senior Engineers (115, 147, 148) $28,100
Inspector (115, 147, 148) $14,050
Associate Engineer (115, 147, 148) $14,050 MIDYEAR REQUEST 115 State Gas Tax Fund $2,460
146 Prop C Fund $183,169
147 Measure R Fund $498,354
148 Measure M Fund $122,895
301 Capital Improvement Fund $(715,198)
PROJECT TOTAL: $1,689,470 TOTAL FY 23-24 CIP FUNDING: $1,689,470 Attachment 7
1 874

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Street and Highway Improvements 115-8112-4201 146-8112-4201
301-8112-4201
PROJECT NO./TITLE: CIP 112 Annual City Sidewalk Improvements PROJECT DESCRIPTION:

This project provides repairs, grinding,
replacement, and improvements to sidewalks
throughout the City at various locations to
maintain and improve safety.

STATUS: Conceptual Planning
Pending staff availability.

JUSTIFICATION:

Several sidewalk locations are in need of repairs,
replacement, and improvements.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $120,000 115 State Gas Tax Fund $80,000
Construction $614,443 146 Prop C Fund $200,000
Two Senior Engineers (115) $2,400 301 Capital Improvement Fund $600,000 Inspector (115) $1,200
Associate Engineer (115) $1,200

MIDYEAR REQUEST
115 State Gas Tax Fund $(70,069)
146 Prop C Fund $(70,688)
PROJECT TOTAL: $739,243 TOTAL FY 23-24 CIP FUNDING: $739,243 2 875

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Street and Highway Improvements 115-8195-4201 147-8195-4201
148-8195-4201
PROJECT NO./TITLE: CIP 195 City Sidewalk Improvements
PROJECT DESCRIPTION:

This project provides repairs, replacements, and
improvements to sidewalks throughout the City at
various locations to maintain and improve safety.

Improvements will include ADA components by
increasing sidewalk accessibility to be
determined during design.

STATUS:

Construction for sidewalk improvements is completed.

Combined with CIP 760. Project close-out ongoing.

JUSTIFICATION:

Several City sidewalks are in need of repairs,
replacement and or improvements.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $10,200 115 State Gas Tax Fund $1,912
Construction $41,129 147 Measure R Fund $2,500
148 Measure M $28,412

MIDYEAR REQUEST
301 Capital Improvement Fund $18,505
PROJECT TOTAL: $51,329 TOTAL FY 23-24 CIP FUNDING: $51,329 3 876

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Sewer/Storm Drain Improvements 122-8417-4201
161-8417-4201
190-8417-4201
191-8417-4201
301-8417-4201
PROJECT NO./TITLE: CIP 417 Storm Drain Improvements - Various Locations PROJECT DESCRIPTION:

This project includes storm drain improvements
throughout the city. Locations will be as identified
and prioritized per the Storm Drain Master Plan.

Projects will address deficiencies, ponding, and
repairs citywide. This project will also address
operational deficiencies at the outfall structures at
18th Street and 19th Street. Improvements
include design and construction activities on an
annual basis.

STATUS: Conceptual Planning
Pending staff availability.

JUSTIFICATION:

The Storm Drain Master Plan identified areas of
inadequate capacity, localized ponding and
operational deficiencies.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $400,000 122 Tyco Fund $150,896
Construction TBD 161 Storm Drains Fund $1,177,633
Construction Management/Inspection TBD 190 RTI Undersea Cable $371,224 Assistant Engineer (122, 161) $13,285 191 RTI Tidelands $170,000 Two Senior Engineers (122, 161, 190) $41,421 301 Capital Improvement Fund $28,059 Inspector (122, 161, 190) $20,711
Associate Engineer (122, 161, 190) $20,711 MIDYEAR REQUEST 122 Tyco Fund $(68,771)
190 RTI Undersea Cable $(356,376)
191 RTI Tidelands $(1,685)
PROJECT TOTAL: TBD TOTAL FY 23-24 CIP FUNDING: $1,470,980 4 877

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Park Improvements 122-8502-4201
301-8502-4201
PROJECT NO./TITLE: CIP 502 Greenbelt Pedestrian Trail
PROJECT DESCRIPTION:

This project will remove woodchips and construct
an accessible pedestrian trail composed of
decomposed granite on the Greenbelt from Pier
Avenue to 8th Street.

STATUS: Final Engineering Design
90% Design under review.

JUSTIFICATION:

The City has approved a pilot program to
construct an accessible pedestrian trail
composed of decomposed granite on the
Greenbelt to provide greater accessibility.

MAINTENANCE:

The decomposed granite path will need to be
maintained.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $20,000 122 Tyco Fund $60,000
Construction $764,000 301 Capital Improvement Fund $365,655 Construction Management/Inspection $70,085

MIDYEAR REQUEST
301 Capital Improvement Fund $428,430
PROJECT TOTAL: $854,085 TOTAL FY 23-24 CIP FUNDING: $854,085 5 878

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Public Building and Ground Improvements 122-8692-4201 125-8692-4201
160-8692-4201
PROJECT NO./TITLE: CIP 692 14th Street Beach Restroom Improvements PROJECT DESCRIPTION:

This project proposes constructing a new
restroom facility which includes replacement of
the entire building; restrooms; appurtenant
plumbing; ADA improvements for compliance.

This project will also include the replacement of
the existing sewer lift station components which
includes 2 submersible pumps; motor control
panel; associated plumbing; addition of telemetry
for condition/outage notifications. New restrooms
will be ADA compliant.

STATUS: Conceptual Planning
Pending staff availability.

JUSTIFICATION:

The sanitary lift station is not working at full
capacity due to age.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $400,000 122 Tyco Fund $373,714
Construction TBD 125 Park/Rec Facility Tax Fund $50,000 Construction Management/Inspection TBD 160 Sewer Fund $61,946 Assistant Engineer (122,160) $5,595
Two Senior Engineers (122, 160) $22,686
Inspector (160) $372
Associate Engineer (160) $11,201 MIDYEAR REQUEST
125 Park/Rec Facility Tax Fund $(5,815)
PROJECT TOTAL: TBD TOTAL FY 23-24 CIP FUNDING: $479,845 6 879

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Public Building and Ground Improvements 122-8699-4201 149-8699-4201
161-8699-4201
190-8699-4201
191-8699-4201
301-8699-4201
PROJECT NO./TITLE: CIP 699 Parking Structure (Lot C) Improvements PROJECT DESCRIPTION:

This project provides repairs and improvements
to the City's Parking Structure (Lot C) based on
the assessment report from Study 694 Parking
Structure (Lot C) Structural Assessment including
structural, elevator and electrical repairs.

STATUS: Final Engineering Design
Finalizing bid package.

JUSTIFICATION:

From the assessment report, the City's Parking
Structure (Lot C) is in need of immediate and
long term repairs to improve safety and extend
the lifespan of the parking structure.

MAINTENANCE:

Additional maintenance is recommended to
extend the use and lifespan of the parking
structure per the assessment report.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Design $100,000 122 Tyco Fund $768,000
Construction $2,179,561 149 Measure W $69,370
Construction Management/Inspection $112,501 161 Storm Drains Fund $124,800 Assistant Engineer (122) $7,680 190 RTI Undersea Cable Fund $290,000 Two Senior Engineers (122, 161, 190) $19,860 191 RTI Tidelands Fund $55,000 Inspector (122, 161, 190) $9,828 301 Capital Improvement Fund $105,000 Associate Engineer (122, 161, 190) $9,928

MIDYEAR REQUEST
190 RTI Undersea Cable Fund $377,322
191 RTI Tidelands Fund $(55,000)
301 Capital Improvement Fund $704,866
PROJECT TOTAL: $2,439,358 TOTAL FY 23-24 CIP FUNDING: $2,439,358 7 880

CITY OF HERMOSA BEACH

CAPITAL IMPROVEMENT PROJECT REQUEST
FISCAL YEAR 2023-2024
DEPARTMENT: PUBLIC WORKS ACCOUNT NO.:

CATEGORY: Street and Highway Improvements 301-8760-4201 PROJECT NO./TITLE: CIP 760 Tree Well Grates
PROJECT DESCRIPTION:

This project will install iron tree grates in existing
tree wells on Hermosa Avenue.

STATUS:

Construction for sidewalk improvements is completed.

Combined with CIP 195. Project close-out ongoing.

JUSTIFICATION:

Several sidewalks are in need of repairs,
replacements and improvements.

MAINTENANCE:

No additional maintenance required.

COST TO COMPLETE PROJECT FISCAL YEAR 2023 – 2024 APPROPRIATIONS Construction $62,060 301 Capital Improvement Fund $34,728

MIDYEAR REQUEST
301 Capital Improvement Fund $27,332
PROJECT TOTAL: $62,060 TOTAL FY 23-24 CIP FUNDING: $62,060 8 881
City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 02-27-24 17:00
Agenda Name Comments Support Oppose Neutral
b) REPORT 24-0060 MIDYEAR BUDGET REVIEW 2023-24
(Finance Director Viki Copeland)
1 1 0 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown.

Overall Sentiment
Agenda Item: eComments for b) REPORT 24-0060 MIDYEAR BUDGET REVIEW 2023-24 (Finance Director Viki Copeland)
Overall Sentiment
Jon David
Location:

Submitted At: 2:08pm 02-27-24
These economic development advisory committee members put countless hours into this topic in what I feel was a very successful and collaborative effort with the City. I was part of that and worked with Doug Kraus early during the pandemic on this. He and staff has delivered on-street ding encroachment guidelines that exceed my expectations! If adopted these guidelines will certainly help create a more fertile economic environment for our downtown. I can not say frequently or loudly enough that our economic development efforts should not be about helping individual businesses but should be about creating opportunities and incentives to businesses to they can create a more vibrant and resilient downtown for the entire community. This program should NOT be viewed as a gift to the businesses, but a gift to the entire community because it makes Hermosa a better place. For this reason, I love staff's recommended economic development grant program. The program sends a collaborative message.

I like encouraging bike racks. We need to keep focusing on making alternative modes of transportation easier to 882
choose.

The ambient music section is important because increased vibrancy flows from from increased energy and a sense of place. Music delivers both.

I would like to see TV’s allowed on decks to cast sports and sport-like events. The larger community loves things like that. I have never understood our excess caution over TVs inside or outside.

Lastly, I know little about the economics and financial situation of various restaurants, but from my perspective, the fee schedule seems appropriate. The fees seem substantial enough to create a commitment without being a deterrent. Again, the program should not be viewed as a gift to the restaurants but one to the community. We want decks, GREAT ONES, as long as they are used.
883
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 24-0074
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 27, 2024

ADOPT RESOLUTIONS ESTABLISHING OPERATIONAL AND DESIGN

GUIDELINES FOR ON-STREET COMMERCIAL ENCROACHMENT AREAS

CITYWIDE AND ESTABLISHING

FEES FOR COMMERCIAL ENCROACHMENT PERMITS AND ANNUAL

PERMIT REAPPLICATION
(Environmental Programs Manager Doug Krauss)
Recommended Action:

Staff recommends City Council:

1. Adopt a resolution establishing operational and design guidelines for on-street commercial encroachment areas citywide and the determination that the project is Categorically Exempt under the California Environmental Quality Act (CEQA) (Attachment 1);

2. Adopt a resolution establishing fees for commercial encroachment permits and annual permit reapplication (Attachment 2); and

3. Approve an appropriation of $5,000 from the General Fund for on-street dining deck bicycle rack installation.

Executive Summary:

At its December 14, 2021 meeting, City Council provided staff with direction to develop long-term versions of the temporary outdoor dining and downtown lane reconfiguration programs that were created in response to the COVID-19 pandemic. Council subsequently extended the temporary program through May 1, 2023 with direction to staff to bring the elements of the program to Council before that date.

Some of the final elements necessary to establish the long-term program were approved by Council at meetings in April and June of 2023. They include an ordinance amending Chapter 12.16 (Encroachments) of the Hermosa Beach Municipal Code (HBMC); a resolution revising existing operational and design guidelines for Pier Plaza and other off-street commercial encroachments; a resolution for new quarterly encroachment fees; a resolution establishing the downtown bike lanes and lane reconfigurations as permanent; and accompanying California Environmental Quality Act (CEQA) determinations. As the final vital element of the overall, long-term outdoor dining program, staff recommends Council approve guidelines for on-street commercial encroachment areas (“dining City of Hermosa Beach Page 1 of 12 Printed on 3/19/2024 powered by Legistar™884
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staff recommends Council approve guidelines for on-street commercial encroachment areas (“dining decks”) and new fees for commercial encroachment permits.

Background:

The City has long supported outdoor dining on private and public property to supplement indoor operations. With the onset of the COVID-19 pandemic and related health orders, businesses were limited from operating indoors. Recognizing the hardship, City Council approved a program, allowing expanded outdoor dining and other commercial activity, which subsequently led to approval of implementing lane reconfigurations and bike lanes in the downtown area to support expanded outdoor dining programs. The City also suspended zoning and parking requirements to allow outdoor dining on private property and established a temporary encroachment permit program to allow new encroachments into sidewalks, public streets, and Pier Plaza. Both the private property programs and encroachment program included a basic set of guidelines pertaining to hours of operation, permitted uses, maintenance, etc., collectively referred to hereafter as the Outdoor Permit Program.

The City issued over 60 permits during the temporary Outdoor Permit Program in a variety of commercial locations citywide including extended encroachments on Pier Plaza and encroachments into other public right-of-way areas. The program included encroachment into on-street parking spaces, which had previously not been allowed in Hermosa Beach. Initially, as a temporary measure, City Council allowed the uses without requiring any encroachment area rents or reimbursement of lost parking meter revenue. In June 2021, Council approved extension of the pilot program through December 31, 2021 and authorized implementation of a reapplication process for outdoor encroachment areas that included renewal of permissions from neighboring businesses and requirement of deposits to pay for removal of the decks should the City need to do so.

At its December 14, 2021 meeting, Council approved an extension of the programs through May 31, 2022. At its January 25, 2022 meeting, Council discussed implementing new fees for the temporary outdoor dining encroachments and approved a fee of $1.50 per square foot per month to begin March 1, 2022.

Council, subsequently, extended the program in both May and November of 2022 with a final extension to May 1, 2023 and directed staff to bring the permanent program for consideration. At the April 25, 2023 meeting, Council approved a resolution establishing the lane reconfigurations and downtown bike lanes and provided feedback and direction on a number of other key program elements, including fees and encroachment area sizing. At its June 13, 2023 meeting, staff brought back program elements for Council’s approval. They included revisions to HBMC Chapter 12.16 governing encroachments, a resolution establishing guidelines for Pier Plaza and other off-street encroachments, and a resolution establishing a new fee schedule for the encroachments.

Fall of 2023, City staff distributed the new guidelines and new application materials to all off-street commercial encroachment permit holders with a 60-day deadline to submit the application City of Hermosa Beach Page 2 of 12 Printed on 3/19/2024 powered by Legistar™885
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commercial encroachment permit holders with a 60-day deadline to submit the application package, including new plans for the proposed encroachment areas. City staff mailed, emailed, and hand-delivered these materials to the affected businesses and followed up with calls and site visits to ensure businesses understood the program, the process, and their obligations. Staff received applications from almost all the original 35 encroachment permit holders. Businesses that did not submit applications cited a variety of reasons including closure, financial challenges, and revised business strategies.

As directed by Council, staff developed the elements necessary to establish a permanent version of an Outdoor Dining and Downtown Lane Reconfiguration Program. Elements already completed include:

1. An ordinance amending HBMC Chapter 12.16 to establish basic guidelines for a permanent outdoor dining and retail program.

2. A resolution establishing a new fee schedule for encroachments citywide.

3. A resolution permanently establishing the downtown lane reconfigurations and bike lanes.

4. A resolution amending operational and design guidelines for Pier Plaza.

5. A CEQA determination for the program elements.

The final elements of the program are proposed resolutions for the operational and design standards guidelines for on-street dining decks (Attachment 1) and new fees for commercial encroachment permits and annual renewals (Attachment 2).

Past Council Actions
Meeting Date Description
June 9, 2020 Approved Ordinance 20-1410U allowing temporary permit program for outdoor dining in response to pandemic.

July 14, 2020 Directed staff to proceed with development of lane closure plans.

June 22, 2021 Approved extension of the outdoor permit program through December 31, 2021.

July 13, 2021 Approved Resolution authorizing extension of lane reconfigurations.

October 26, 2021 Approved development and implementation of permanent versions of these programs.

December 14, 2021 Approved development of permanent programs, and extension of temporary programs through May 2022
January 25, 2022 Discussion and approval of new fees for temporary encroachments
February 8, 2022 Approved reinstatement of existing fees for permanent encroachment areas
May 242022 Approved extension of programs through January 2023 City of Hermosa Beach Page 3 of 12 Printed on 3/19/2024 powered by Legistar™886
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July 13, 2021 Approved Resolution authorizing extension of lane reconfigurations.

October 26, 2021 Approved development and implementation of permanent versions of these programs.

December 14, 2021 Approved development of permanent programs, and extension of temporary programs through May 2022
January 25, 2022 Discussion and approval of new fees for temporary encroachments
February 8, 2022 Approved reinstatement of existing fees for permanent encroachment areas
May 24, 2022 Approved extension of programs through January 2023 June 14, 2022 Approved additional refinements to the outdoor dining programs
November 3, 2022 Approved extension of temporary programs through May 1, 2023
January 24, 2023 Consideration market rate appraisal, temporary rooftop dining, and changes to Pier Plaza temporary encroachments March 28, 2023 Considered a draft ordinance related to permanent outdoor dining and retail
April 25, 2023 Considered program elements, provided feedback for revisions, and approved a Resolution establishing lane
reconfigurations, bike lanes and street closures.

June 13, 2023 Introduced an Ordinance amending Chapter 12.16 of the Hermosa Beach Municipal Code related to Commercial
Encroachments and adopted a Resolution establishing design and operational guidelines for off-street encroachments, and a Resolution establishing a fee schedule for encroachment fees.

July 11, 2023 Adopted an Ordinance amending Chapter 12.16 of the Hermosa Beach Municipal Code related to Commercial
Encroachments
Discussion:

On-Street Deck Design and Operational Guidelines
Finalizing the off-street guidelines and implementing the new application process for the program allowed staff additional time to refine the many elements necessary for the on-street dining guidelines. The guidelines for on-street dining are inherently more complex than those for off-street due to a variety of issues unique to the on-street decks, especially traffic safety.

Transitioning the temporary program to a long-term program required careful analysis of each of the many program elements. The proposed guidelines reflect the evolving nature of on-street dining programs throughout the region and lack of design requirements for decks in the public right-of-way at the State and Federal level. The relative newness of these programs hampered staff’s ability to City of Hermosa Beach Page 4 of 12 Printed on 3/19/2024 powered by Legistar™887
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at the State and Federal level. The relative newness of these programs hampered staff’s ability to gather definitive information on long-term safety and construction best management practices.

To arrive at the proposed guidelines, staff from every department worked together and consulted other agencies, third-party engineering and safety experts, and the local business community. Staff’s efforts included close interaction with the Hermosa Beach Chamber of Commerce and Visitors Bureau to survey local businesses and host two recent meetings of current and prospective deck operators to elicit specific feedback on the proposed guidelines. Meeting notes are provided as Attachment 3.

The new guidelines would be implemented via a one-year initial term with annual renewals to follow.

Every on-street dining deck operator would be required to submit plans and an application for a new encroachment permit. Staff from multiple departments would review the applications to determine the suitability and safety of the proposed deck design and to confirm that the applicant has no outstanding code violations that would prohibit a new permit.

Below is a summary of key program elements that informed the proposed guidelines.

1. Traffic Safety-staff consulted closely with traffic engineers and staff from other agencies to discern a coherent traffic safety rationale that balances safety with cost and practicality. Although only two minor collisions occurred with the existing temporary decks since the program’s inception in 2020, staff prioritized traffic safety for the long-term on-street encroachment program.

Dining decks in the current temporary program benefit from a number of conditions that provide important safety advantages. The bike lanes along Pier and Hermosa Avenues provide important buffer zones to allow drivers an opportunity to correct and avoid collisions with the decks while driving. Additionally, City Council recently approved changing speed limits along Pier and Hermosa Avenues from 25 miles per hour to 20 miles per hour, further enhancing the safety in these areas. Lastly, the water-filled barriers that currently surround all on-street decks have been shown to be an acceptable and efficient method of adding collision protection to the dining areas.

For these reasons, staff supports allowing existing deck operators to continue with only minimal traffic safety modifications, including installation of traffic delineators and additional site-specific assessment to be completed by the City’s on-call traffic engineer. Staff would continue to monitor traffic safety concerns, review any future design guidance from relevant State and Federal agencies, and solicit general feedback on the program to assess any adjustments that should be made.

Several local agencies are exploring the concept of widening sidewalks in their downtown areas to offer increased sidewalk dining and eliminate the use of on-street dining areas. Staff is City of Hermosa Beach Page 5 of 12 Printed on 3/19/2024 powered by Legistar™888
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to offer increased sidewalk dining and eliminate the use of on-street dining areas. Staff is considering sidewalk expansion as a long-term strategy, along with other long-term changes and improvements, subject to future Coastal Commission approvals, capital cost requirements, and operational considerations.

2. Operation and design-the rules governing deck design for the temporary program were relatively minimal at the program’s onset. Most of the initial decks were built by a small handful of contractors and thus had a consistent design and construction type. As the program grew, a variety of designs and requests for amenities from deck operators emerged.

The proposed guidelines provide a much more thorough set of requirements and prohibitions that balance design freedom with operational safety and practicality. These guidelines were informed by extensive research of other agencies’ programs as well as direct feedback from local businesses. The proposed guidelines address a wide variety of concerns. Some of the key proposed standards include:
· The prohibition of fixed and solid roofs. Instead, the guidelines would allow umbrellas and “shade sails” to provide shade for patrons.
· Electrical service to the decks would be limited to one outlet. · Decks must comply with the Americans for Disabilities Act. · Open flames would not be allowed. However, propane and electric heaters would be allowed, with certain restrictions.
· Deck walls must not exceed 42 inches in height from the street, with a few exceptions for additions such as plants, etc.
· Speakers would be allowed on the deck for the purpose of ambient background music. This would require an amplified sound permit and would require adherence to all noise and nuisance regulations.
· Drainage along the curb for stormwater must meet certain minimum sizes and adequate design must be verified. Although this was required of the existing temporary decks, staff would enforce the requirement more diligently and uniformly and ensure the drainage path is maintained and does not deteriorate over time.
· Staff proposes encouraging installation of bicycle racks on existing decks and require it of all new decks. The recommendation includes economic development incentives of potentially reduced encroachment fees, through City subsidies, for participating businesses and the purchase and installation of the by racks by City staff.

The proposed modifications must include assurances that the existing structures are structurally sound and that any elements in conflict with the new guidelines are corrected. All existing and new deck business owners must submit plans for full plan review and site inspections.

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3. Aesthetics-input from City Council, business owners, and the community in general, gathered over the past three years, indicated a preference to allow businesses the flexibility to have unique design aesthetics with certain restrictions. Staff recommends that the City maintain the discretion to approve or deny proposed designs.

The City proposes an economic development grant program, using City funds, to incentivize businesses to re-paint decks and incorporate professional artists and designers in the process.

The program would offer a discount of up to $600 on the encroachment permit fee to any business that re-paints or beautifies its dining deck walls. Applicants would be required to submit renderings of the new design and staff would review and determine eligibility for the discount.

The City would work with the Chamber of Commerce to identify local artists most suitable for this work and help disseminate their information to businesses. The rebates would be first-come, first -served, with a total not-to-exceed permit fee waiver total of $10,000.

4. Liability-staff consulted with the City Attorney, the California Joint Powers Insurance Authority (JPIA), several traffic safety engineers and risk management experts, and staff from other agencies regarding liability related to deck design and recommended insurance levels. Following a review of best practices, and in the absence of formal design requirements from State and Federal agencies, staff developed a program based on the best practice research, as it applies to our unique roadway conditions.

After consultation with risk management experts, and with the goal of protecting the businesses and the City, staff recommends an increase in the amount of insurance required of deck operators. The recommended coverage of four million dollars aggregate and two million dollars per occurrence is consistent with current industry standards and best practices. The current requirements are only two million and one million dollars, respectively.

5. Administration-staff developed a new application for all commercial encroachment permits.

The new application would be required of all existing encroachment permit holders. Staff also proposes a new method for allowing on-street encroachments to utilize the frontage of neighboring businesses. A business proposing to encroach upon another business’ frontage would be required to work with the City to notify the neighboring business, but not require permission as was done in the temporary program. The business must verify it notified the adjacent business and any concerns from the neighbor would result in a discussion between the parties with the City’s involvement as necessary to ensure a reasonable compromise.

Businesses wishing to encroach on neighboring frontage or share decks must provide a customized signed affidavit customized.

There are currently 14 on-street dining decks, occupying 34 public parking spaces citywide (Attachment 4). Staff recommends that all existing decks submit new plans within 90 days of City of Hermosa Beach Page 7 of 12 Printed on 3/19/2024 powered by Legistar™890
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(Attachment 4). Staff recommends that all existing decks submit new plans within 90 days of approval of the guidelines. After plan approval, businesses would be required to implement any deck revisions within 90 days.

Application, Plan Review, and Renewal Fees
City staff developed the proposed application, plan review, and renewal fees after a thorough multidepartmental workshopping of the plan review process, which was informed, in part, by the off-street commercial encroachment application and submittal process that began in Fall 2023. Staff utilized existing encroachment permit review fees and monitored staff time to determine what revisions should be made and how to best structure on-street encroachment application fees.

Staff recommends new fees be established for the following:

1. Standard off-street commercial encroachment permits (i.e., Pier Plaza);

2. Simple off-street commercial encroachment permits (i.e., retail displays and sidewalk dining);

3. On-street dining encroachment permits (dining decks);

4. Annual renewal of permits for all commercial encroachments; and

5. Minor Alterations.

The permit review process involves many City departments and occasionally contracted on-call professionals. For initial applications for standard off-street and on-street encroachments, the City requires submittal of plans prepared by a licensed professional showing the entire encroachment area and its dimensions and structures, as well as any proposed changes to the encroachment area.

On-street encroachments have unique safety and design considerations associated with being located on the roadway surface adjacent passing vehicular traffic. Based on complexity, staff proposes a higher fee to reflect the more complicated review and approval process. Small off-street encroachment permit applicants are required to submit a sketch of their proposed encroachment and, because they do not involve any permanent structures or furniture, are subject to a much more streamlined review.

Per Hermosa Beach Municipal Code (HBMC) Chapter 12.16, all commercial encroachments, both on -street and off-street, are subject to annual renewals. The annual renewal fee reflects a simplified workload that assumes the encroachment area was not changed during the year. All permits and renewals require submittal of application forms, updated insurance documents, and re-inspection.

Staff also proposes a fee to cover review of minor alterations to the encroachment area that could be covered by a simple site plan amendment or update. For reference, the current outdoor dining encroachment permit fee is $1,371.74.

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The proposed fees for these five categories are as follows:

Outdoor Dining Encroachment Permits Fee
Application for standard off-street encroachment $1,618.48 Application for simple off-street encroachment $492.20
Application for on-street encroachment $1,895.24
Annual Renewal $397.70
Minor Alteration $313.02
The proposed fees would be subject to annual consumer price index (CPI) adjustments, per the Master Fee Schedule. Any additional necessary permits (i.e., building or electrical permit) would require separate additional fees.

Next Steps
Should Council approve the proposed guidelines and fees, staff would immediately notify all affected businesses to begin the application submittal process. Each prospective on-street dining encroachment applicant would be required to submit professionally prepared plans, an application form, a maintenance covenant, proof of insurance, and a plan review fee. City staff would review the applications and plans. Review times may vary depending on the completeness of the application submittal and complexity of the review.

City staff met with California Coastal Commission staff and established that a five-year pilot program would be an effective approach to implement the program. The pilot program would include ongoing monitoring and assessment to document the project’s effect on parking and coastal access. The effort may also include testing a variety of programs and measures to ensure adequate coastal access is maintained during the pilot. Staff is currently working to develop acceptable measures to incorporate into the program that would satisfy the criteria for the Coastal Development Permit. If approved, staff would submit a Coastal Development Permit application for a pilot program.

General Plan Consistency:

The proposed program options match the model of “living streets,” also known as “complete streets,” which supports a key guiding principle of the General Plan Vision, of fostering a vibrant local economy. A living street combines safety and livability while supporting ground floor and outdoor economic activities. Living streets/complete streets principles center on designing streets that can be safely shared by both vehicular and non-vehicular traffic. A living street should also contribute to an engaging public realm and a vibrant local economy.

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Relevant Goals and Policies are listed below:

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

Policies:
· 6.4 Business support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.
· 6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses.

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

Policy:
· 1.1 Consider all modes. Require the planning, design, and construction of all new and existing transportation projects to consider the needs of all modes of travel to create safe, livable and inviting environments for all users of the system.

Goal 7. A transportation system that results in zero transportation-related fatalities and which minimizes injuries.

Policy:
· 7.1 Safe public rights-of-way. Encourage that all public rights-of-way are for all users at all times of day where users of all ages and ability feel comfortable participating in both motorized and non-motorized travel.

Fiscal Impact:

Staff requests appropriation of $5,000 from Prospective Expenditures for bicycle rack installation to be budgeted in the Public Works Administration Division. Public Works operations and maintenance staff would be responsible for the installation.

Request Item Request Amount FY 2023-24 Budget Dept. Account # Bicycle Rack Installation $5,000 001-4201-4201
The proposed quarterly encroachment fees for existing on-street dining decks are estimated to City of Hermosa Beach Page 10 of 12 Printed on 3/19/2024 powered by Legistar™893
Staff Report
REPORT 24-0074
The proposed quarterly encroachment fees for existing on-street dining decks are estimated to generate approximately $6,500 monthly in revenue until July 1, 2024 when the rate transitions from $1 per square foot to $2 per square foot. Staff is unable to predict final business participation levels and thus revenues could fluctuate.

Annual lost parking revenue is estimated to be approximately $260,000 from the 34 parking spaces currently occupied by on-street dining decks. Approximately $30,000 in funds for ongoing annual traffic and parking analysis will be appropriated in the FY 2024-25 Budget. The new proposed encroachment permit and renewal fees are estimated to provide a nominal increase in revenue compared to existing encroachment permit fee revenue. The increase in revenue represents cost recovery for the added staff time to review more complex encroachment permits for on-street outdoor dining.

Attachments:

1. Draft Resolution Approving Guidelines for On-Street Commercial Encroachments

2. Draft Resolution Establishing a Fee Schedule for Permanent Encroachments

3. Meeting Minutes from Recent Business Meetings

4. Map of Current Encroachment Areas

5. Link to June 9, 2020 City Council Staff Report

6. Link to July 14, 2020 City Council Staff Report

7. Link to June 22, 2021 City Council Staff Report

8. Link to July 13, 2021 City Council Staff Report

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

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

11. Link to January 25, 2022 City Council Staff Report

12. Link to February 8, 2022 City Council Staff Report

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

14. Link to June 14, 2022 City Council Staff Report

15. Link to November 3, 2022 City Council Staff Report

16. Link to January 24, 2023 City Council Staff Report

17. Link to March 28, 2023 City Council Staff Report

18. Link to April 25, 2023 City Council Staff Report

19. Link to June 13, 2023 City Council Staff Report

20. Link to July 11, 2023 City Council Staff Report
Respectfully Submitted by: Douglas Krauss, Environmental Program Manager Concur: Carrie Tai, Community Development Director
Concur: Joseph SanClemente, Public Works Director
Noted for Fiscal Impact: Viki Copeland, Finance Director Legal Review: Pat Donegan, City Attorney
Approved: Suja Lowenthal, City Manager
City of Hermosa Beach Page 11 of 12 Printed on 3/19/2024 powered by Legistar™894
Staff Report
REPORT 24-0074
City of Hermosa Beach Page 12 of 12 Printed on 3/19/2024 powered by Legistar™895
1 CITY OF HERMOSA BEACH
RESOLUTION NO. 24-

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

ESTABLISHING OPERATIONAL AND DESIGN GUIDELINES FOR ON-STREET

COMMERCIAL ENCROACHMENT AREAS CITYWIDE
WHEREAS, On August 9, 2005, the City Council conducted a public meeting to review the outdoor dining standards and procedures for outdoor dining areas on Pier Avenue adopted in 1997, pursuant to Title 12, Chapter 12.16 of the Municipal Code pertaining to encroachments into the Public Right-of-Way; and WHEREAS, On May 8, 2012, the City Council adopted a resolution amending standards and procedures for the design and operation of outdoor dining areas on Pier Plaza; and
WHEREAS, On May 11, 2015 the City Council adopted a resolution further amending the aforementioned standards and procedures for the design and operation of outdoor dining areas on Pier Plaza; and
WHEREAS, On October 2021, City Council directed staff to develop permanent versions of the temporary extended outdoor dining programs implemented during the COVID-19 pandemic ; and
WHEREAS, On April 25, 2023, City Council approved operational and design guidelines for all off-street and Pier Plaza commercial encroachments citywide; and
WHEREAS, City staff has gathered input from the City Council, local businesses and community stakeholders to develop the proposed guidelines for permanent on-street encroachments citywide.

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

SECTION 1. The City Council does hereby declare that the recitals set forth above are true and correct and are incorporated herein by reference.

SECTION 2. The City Council hereby adopts the attached Guidelines attached as Exhibit A and incorporate herein.
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2 SECTION 3. Severability. If any section, subsection, sentence, clause, phrase or word of this resolution is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, such decision shall not affect the remaining provisions of this Ordinance.

SECTION 4. Environmental Review. The proposed project is Categorically Exempt from the California Environmental Quality Act as defined in Section 15300 of the CEQA Guidelines, in accordance with Section 15061, the ‘common sense’ exemption, and Section 15301 which addresses minor alterations of existing public facilities, specifically:
15061(b)(3) – The project is covered by the common sense exemption that applies where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. 15301(c) – Existing highways and streets, sidewalks, gutters, bicycle and pedestrian trails, and similar facilities (this includes road grading for the purpose of public safety), and other alterations such as the addition of bicycle facilities, including but not limited to bicycle parking, bicycle-share facilities and bicycle lanes, transit improvements such as bus lanes, pedestrian crossings, street trees, and other similar alterations that do not create additional automobile lanes.

None of the exceptions to the Categorical Exemption apply, nor would the project result in a significant cumulative impact of successive projects of the same type in the same place over time or have a significant effect on the environment due to unusual circumstances or damage a scenic highway or scenic resources within a state scenic highway. The site is not located on a hazardous waste site and would not cause a substantial adverse change in the significance of a historical resource. These Guidelines, which only apply to revocable encroachments of a temporary nature, will ensure that encroachments for onstreet applications are installed and maintained in a way that is protective of public safety and minimize any aesthetic impacts.

SECTION 5. The City Clerk shall certify the adoption of this Resolution which shall be effective upon its adoption.
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3 PASSED, APPROVED and ADOPTED on this 27th day of February, 2024 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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4 Exhibit A

CITY OF HERMOSA BEACH

ON-STREET DINING DECK DESIGN AND OPERATIONAL GUIDELINES Date of Last Revision: February 2024
I. INTRODUCTION ...................................................................................................................... 6 II. APPLICATION PROCEDURE................................................................................................... 6

1. Application Submittal ....................................................................................................... 6

2. Review Procedure............................................................................................................. 6

3. Term of Encroachment Permits ....................................................................................... 7

4. No Outstanding Violations ............................................................................................... 7

5. Required Prior to Encroachment Permit Issuance: ....................................................... 7

6. Approval ............................................................................................................................. 9

7. Renewal.............................................................................................................................. 9 III. DESIGN STANDARDS ............................................................................................................ 10

1. Size and Placement ........................................................................................................ 10

2. Prohibited Locations ....................................................................................................... 10

3. Special Locational Considerations ............................................................................... 10

4. Site Specific Safety Assessment..................................................................................... 10

5. Obstructions and Utilities................................................................................................. 11

6. Encroaching on Neighboring Business Frontages....................................................... 11

7. Drainage........................................................................................................................... 11

8. Proposed Structure, Components, and Amenities..................................................... 11

9. Traffic Safety Elements.................................................................................................... 12

10. Deck Design ..................................................................................................................... 13

11. Framing Systems............................................................................................................... 13

12. Bolting to Roadway......................................................................................................... 14

13. 42” Requirement.............................................................................................................. 14

14. Elements Higher Than 42”............................................................................................... 14

15. Shade Structures and Umbrellas ................................................................................... 14

16. Public View of the Ocean.............................................................................................. 15

17. Deck Amenities................................................................................................................ 15

18. Accessibility ...................................................................................................................... 15

19. Heating ............................................................................................................................. 15 899
5 20. Electrical service, Lighting, Wires, and other Utility Connections ............................. 15

21. Inspections........................................................................................................................ 16

22. Bicycle Parking................................................................................................................. 16

23. Aesthetics / Signs............................................................................................................. 16 IV. STANDARDS OF OPERATION................................................................................................. 1

1. Operating Hours ................................................................................................................ 1

2. Service of Alcohol.............................................................................................................. 1

3. Conditional Use Permits (CUP)......................................................................................... 1

4. Unused Decks..................................................................................................................... 2

5. Public Use of Dining Decks............................................................................................... 2

6. Cleanliness.......................................................................................................................... 2

7. Drainage............................................................................................................................. 2

8. Height Requirements......................................................................................................... 2

9. Televisions ........................................................................................................................... 3

10. Use of Barrier Walls............................................................................................................. 3

11. Music ................................................................................................................................... 3

12. Noise.................................................................................................................................... 3

13. Lighting................................................................................................................................ 3

14. Heating ............................................................................................................................... 3

15. Signage............................................................................................................................... 4

16. Maintenance ..................................................................................................................... 4

17. Plants................................................................................................................................... 4

18. Repair of Damage ............................................................................................................ 5

19. Removal after Permit Termination................................................................................... 5

20. Other Governmental Approvals...................................................................................... 5

21. Permanence ...................................................................................................................... 5

22. Regulations within the Public Right of Way.................................................................... 5

23. Other Permittee Responsibilities ...................................................................................... 6

24. Enforcement....................................................................................................................... 6 900
6 I. INTRODUCTION
Business owners must obtain an Outdoor Dining Encroachment Permit to operate an On-Street Dining Deck. An on-street dining deck is a place on the public right-of-way where patrons may consume food and beverages provided by an adjacent food service establishment.

The requirements for the On-Street Commercial Outdoor Dining Program are governed by the Hermosa Beach Municipal Code (HBMC) Chapter 12.16.090 and further described in these Guidelines.

Outdoor Dining Encroachment Permits are not transferable, salable, delegable, or assignable. In the event of a transfer of the business, or a change in ownership such that 51% or more of the business is now owned by a different individual or entity, the transferee or new owner shall apply to the Public Works Department for a new Outdoor Dining Encroachment Permit.

These guidelines were developed based on a review of the COVID-19 temporary program and best practices established in other jurisdictions for the creation of safe dining areas within the roadway.

These guidelines are subject to change in the sole discretion of the City as operational/safety standards are issued/developed by the relevant local, state, and federal jurisdictions. Should new standards be developed, the City reserves the right to promulgate additional safety requirements for current permit holders as deemed appropriate by the Public Works Director or designee.

II. APPLICATION PROCEDURE

1. APPLICATION SUBMITTAL
An application form for an Outdoor Dining Encroachment Permit for On-Street Dining Decks may be obtained from the Public Works Department at City Hall.

2. REVIEW PROCEDURE
Applications are submitted directly to the Public Works Department which facilitates review and approvals by other reviewing departments including Building & Safety, Planning, Finance, and Police Department. These reviews will occur concurrently to the greatest extent possible to expedite the review. Additional permits (i.e., electrical, building, etc.) will require additional fees and application procedures. 901
7 The length of review is dependent on the completeness of the application submittal and complexity of the proposed elements. The City may require additional information, and submittals, depending on site specific features or the complexity, or uniqueness of the proposed elements. Applicants are responsible for resolving any concerns or issues identified by City staff in the review process. If more than two Site Plan check reviews are required to address issues or concerns, additional fees may apply.

3. TERM OF ENCROACHMENT PERMITS
Approved permits will be valid for one year.

New on street dining operators have up to ninety days after the Outdoor Dining Encroachment Permit is issued to begin construction. Operators must notify Public Works 72 hours in advance of initiating construction activities. If construction does not begin within ninety days of obtaining the Outdoor Dining Encroachment Permit operators shall have to re-apply to the Outdoor Dining Program and pay the required fees unless there is a showing of good cause as to why construction was delayed.

4. NO OUTSTANDING VIOLATIONS
An Outdoor Dining Encroachment Permit will only be issued if there are no outstanding Municipal Code violations, violations of any other City-issued permit or delinquent fees. In reviewing renewal applications, the City Manager or designee must determine that there are no unresolved violations of this chapter (and any related regulations) related to the Commercial Encroachment. If, in the preceding twelve (12) months, there were three (3) violations of this chapter or related regulations as determined by the City Manager or designee, then the City Manager, or designee, shall not issue a Commercial Encroachment permit for a period of one (1) year.

5. REQUIRED PRIOR TO ENCROACHMENT PERMIT ISSUANCE:

A. COVENANT AGREEMENT
An encroachment permit and covenant agreement signed and notarized by both the business owner and the property owner is required.

B. SECURITY DEPOSIT
Payment of security deposit of a minimum of $2,500 is required for every dining deck encroachment permit. The deposit is to be used by the City to remove the dining deck if the deck is abandoned by the business or for non-compliance with safety requirements, or for restoration of the public right-of-way following removal of the deck. The deposit may also be used to cover non-payment of required fees upon termination of the permit and deck removal.

The Public Works Director may require a higher deposit, at his or her discretion, depending on the complexity and size of the dining deck. The deposit must be paid to the City prior to the issuance of the Outdoor Dining Encroachment Permit. 902
8 C. INSURANCE
The Applicant, and any other business sharing use of the dining deck, shall obtain Certificate of Insurance and maintain in force during the life of the Outdoor Dining Encroachment Permit comprehensive general liability, broad form property damage and blanket contractual liability insurance in a combined single limit amount, per claim and aggregate, of at least two million dollars ($2,000,000) per occurrence, and a general aggregate limit of no less than four million dollars ($4,000,000), covering the applicant’s operation on the sidewalk. Such insurance shall name, on a Special Endorsement form, the City, its elected, appointed boards, officers, agents, and employees as additional insureds. A Certificate of Insurance shall contain provisions that prohibit cancellation, modification, or lapse without thirty (30) days prior written notice to the City. Both the Certificate of Insurance and the completed standard Special Endorsement form shall be submitted with the completed application for an Outdoor Dining Encroachment Permit. An updated Certificate of Insurance shall be submitted annually upon renewal.

The Applicant shall obtain and maintain in force during the life of the Outdoor Dining Encroachment Permit, Worker’s Compensation insurance with statutory limits, and employer’s liability insurance with limits of not less than one million dollars ($1,000,000) per accident.

Comprehensive general liability policy shall provide coverage for all the Applicant’s outdoor operations and facilities whether or not within the encroachment area.

The Applicant shall, defend, indemnify and hold harmless City, its officers, employees and agents from and against all claims, causes of action, liabilities and damages for injuries to persons and property, including reasonable costs of defense and attorney fees, arising from the Applicant’s encroachment on City property, including but not limited to the Applicant’s negligent or wrongful acts, errors or omissions in the construction, erection, operation and continued maintenance of the encroachment in its location. The Applicant shall promptly pay the amount of any judgment rendered against City, its officers, employees and agents for any such indemnified claims, and reasonable costs and attorney fees incurred by City in the defense of such claims.

D. QUARTERLY ENCROACHMENT FEE
Payment for the first quarter of the Outdoor Dining Encroachment Permit must be paid prior to the issuance of the Outdoor Dining Encroachment Permit. Payments can be made by credit card or check. Subsequent quarterly encroachment fees per square foot will be charged separately.

E. COPY OF ABC LICENSE FOR SERVING ALCOHOL ON DINING DECK

ENCROACHMENT AREA
Business owners must secure the appropriate licenses and permits from the State Alcohol Beverage Control Board to serve alcohol in the deck area. A copy of the license shall be provided at time of application submittal or prior to issuance of the Outdoor Dining Encroachment Permit.
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9 6. APPROVAL
The Director of Public Works is authorized to approve an outdoor dining application and to issue an Outdoor Dining Encroachment Permit on behalf of the City. The decision of the Public Works Director is appealable to the City Council on a form approved by the City. Appeals must be submitted no later than fourteen (14) days after any decision of the Public Works Director.

7. RENEWAL
Approved permits will be valid for one year, following which applicants may apply for an annual renewal of an Outdoor Dining Encroachment Permit.

Plans will not be required if no significant changes are proposed; however, staff will at that time review the existing encroachment area for condition and consistency with the approved plans. If major changes are found between the field conditions and the plans on file, a new updated plan will be required.

The renewal application will be due, with fees paid, no later than sixty (60) days prior to the expiration of the existing Outdoor Dining Encroachment Permit. Applicants shall have all encroachment fees paid before applying for a renewal. Should applicants wish to make substantive changes to their dining areas, a new application with new plans and all supporting documentation will be required. 904
10 III. DESIGN STANDARDS

1. SIZE AND PLACEMENT
Encroachments shall only be permitted On-Streets in commercially zoned areas with a speed limit of 25 miles per hour or less.

On-Street dining decks located in public parking areas shall only occupy a maximum of two parallel on-street parking spaces or three, on-street, head-in angled parking spaces. Notwithstanding the previous sentence, for commercial encroachments located entirely in front of the encroaching business’ frontage (i.e., no encroachment into frontage of a neighboring property owner or business), a business may occupy a maximum three parallel on-street parking spaces or four head-in on-street parking spaces.

2. PROHIBITED LOCATIONS
 Blue Curb (ADA Accessible Parking Spaces): Dining decks may not be located in or impede access to a blue accessible parking space.  Red Curb: Decks are not permitted in red zones.
 Any other area deemed by City staff to be unsafe or detrimental to the public good.

3. SPECIAL LOCATIONAL CONSIDERATIONS
Decks will require special review if proposed in the following areas:
 Yellow Curb (Commercial Loading), Green Curb (Short-term Parking) or White Curb (Passenger Loading Zone): Property owner may petition City staff to evaluate whether a color curb zone can be relocated on same block to accommodate a proposed dining deck. For passenger loading, if relocation will materially affect disabled access or no suitable replacement location can be identified, the application will be denied.
 Distance to fire hydrant and Driveways Per NFPA 1: 36 inches clear space shall be maintained around the circumference of fire hydrants. The same dimension is applicable to a driveway, depending on site conditions.  Where the street grade exceeds 5%, additional design requirements and review may be required; and approval will be at the discretion of the Public Works Director. Items to consider in the design are: maintaining the deck surface to be ADA compliant, preventing deck sliding, maximum height of walls, etc.

4. SITE SPECIFIC SAFETY ASSESSMENT
As part of the application process, the City will conduct a site-specific engineering safety assessment to identify location-specific hazards and recommended mitigation measures to enhance safety for patrons and restaurant employees from roadside hazards and passing bicyclists and pedestrians. Key considerations will include, but are not limited to: unique roadway geometric conditions, proximity to traffic signals or other traffic control devices, sight distance requirements for adjacent roadways, driveways, and crossing locations, and presence of upstream on-street parking. 905
11 The result of this assessment may yield additional requirements, or modifications, beyond the minimum standards identified in these guidelines or denial as deemed appropriate by the Director of Public Works.

5. OBSTRUCTIONS AND UTILITIES
Dining decks shall not obstruct any underground or surface utility or stormwater facilities, including, but not limited to, utility poles, gas valves, water valves, manhole covers, air release valves, fire hydrants, sewer laterals, and catch basins. All decks must allow for access to public utilities for maintenance and repairs. At no time should decks be bolted or affixed to the roadway or any other structure. Pouring concrete directly onto the right-of-way for decks is prohibited.

6. ENCROACHING ON NEIGHBORING BUSINESS FRONTAGES
For on-street dining decks that encroach into a neighboring businesses frontage, applicants must demonstrate to the City notification to affected neighboring business and property owners. An on-street dining deck must be located at least partially in front of the business but may extend into another business’ frontage with a maximum of one parallel parking space or one head-in angled parking space, whichever is applicable. Applicants are responsible for notification of neighboring businesses and must sign an affidavit verifying that adequate notice was given. The affidavit template will be provided by the City. In the event that more than one business applies for a specific encroachment area, the businesses will get priority for their own frontage. It is the City’s discretion to approve, deny or revise any encroachment application.

Sharing of deck space either spatially (i.e., split in half between two businesses) or temporally (i.e., used in the morning by one business and the evening by the other) is allowed. Each entity sharing the space must provide separate proof of insurance, security deposit, and each must sign the encroachment permit application. However, the business must designate a single Outdoor Dining Encroachment Permit representative with the authority to make decisions related to the deck space.

If approved, applicant’s authorization for an on-street dining deck will be valid for one year from issuance and will be re-evaluated at the time of renewal.

7. DRAINAGE
Dining decks shall allow for curbside drainage flow. A continuous, unobstructed 12-inch wide by 6-inch high minimum clear space must be provided under the deck along the gutter line for the entire length of the deck; no obstructions of any kind are allowed in this clear space. Should this dimension prove infeasible, an alternate design must be provided by the applicant and approved by Public Works.

A metal screen with 1-inch by 1-inch mesh shall be used at both sides of the deck drainage to prevent trash or debris from entering under deck. The screen shall be easily removable to facilitate cleaning along the flow line as necessary.

8. PROPOSED STRUCTURE, COMPONENTS, AND AMENITIES
The dining deck shall be built with structural integrity to ensure public safety. The 906
12 proposed structure and its components are built to support anticipated live loads and wind loads. The dining decks shall be constructed to comply with the minimum Wood Frame Prescriptive Provisions for Residential Construction (2022 California Residential Code)
Existing decks constructed before October 1, 2023, may apply to continue their use without substantial changes. The applicant must ensure that the minimum requirements are met, and that the structural integrity of the existing structures and materials are in good condition. All construction shall comply with the associated checklist, and other safety requirements. In this case, submitted plans must include language stating that “the deck is existing and the materials are in good condition for the intended use and comply with the guidelines.” In this case, submitted plans must include the business owners statement certifying the assurance that the existing deck has been constructed to the minimum requirements and structural integrity. Any materials, including water barriers, brackets, lumber, flooring, etc., found to be damaged or not in compliance with the guidelines must be replaced prior to permit issuance.

9. TRAFFIC SAFETY ELEMENTS
a. A continuous rigid physical barrier is required to separate dining areas in the parking lane from vehicular traffic on all three sides open to the roadway. The underlying structure of the perimeter shall be composed of water-filled barriers. The barriers must be fastened (pinned) together for structural integrity and must satisfy at a minimum, the following requirements:
i. Barriers must be NCHRP-350 Accepted, Test Level 2 or MASH TL-2. ii. The barrier must be filled with water per the manufacturer’s specifications and shall be maintained filled throughout the duration of the permit. iii. The barriers must be covered with a rigid framing system on all sides so as not to be visible by any patrons or passers-by.
iv. Waterfilled barriers shall be offset at a minimum 12 inches from the curb face to allow for the design of a 12-inch-wide opening on the sidewall for drainage.
v. Water-filled barriers are not required between the walls of adjacent decks.

However, if an adjacent deck is removed, the owner of the remaining deck must install waterfilled barriers to ensure three sides of the dining area are protected; this will require an amendment to the approved site plan. vi. Removable access panels/doors are required along barrier coverings to allow for easy inspection of each waterfilled barrier to ensure that it is filled.

Barriers that leak shall be replaced immediately with new water filled barriers. b. The exterior perimeter walls for all new, or reconstructed dining areas, shall be offset a minimum of 8-feet from the edge of the adjacent travel lane in accordance with the Caltrans Highway Design Manual (HDM), 7th edition (2022), Topic 302, which references Caltrans Design Information Bulletin No. 79-04, for an 8-foot shoulder that acts as a clear recovery zone.
i. Public Works may consider exceptions to this requirement when traffic delineators are used per the attached exhibits.
907
13 ii. Where proposed dining areas are located within the parking lane directly adjacent to the travel lane, and where the required clear recovery zone cannot be provided, approval will also be considered on a case-by-case basis subject to a site-specific engineering assessment and contingent on the Director of Public Works approval. At a minimum, on-street parking will need to be located immediately upstream of the dining area for safety and White flex post delineators shall be installed per attached exhibits. iii. Perimeter walls shall be located a minimum of 2 feet from the end of an adjacent parallel parking stalls, and a minimum of 3 feet for angled or perpendicular parking, or as determined by the Public Works Department. c. Retroreflective object markers (Type P and OM1-3) and wheel stops shall be provided per the attached exhibits.

10. DECK DESIGN
All dining decks shall be constructed of approved exterior grade materials that maintain the performance characteristics for exterior use. It is the deck permittee’s responsibility to maintain all structural elements in good condition. Proposed materials shall ensure a safe and accessible walking surface. The City will perform periodic safety inspections after the on-street dining decks are open and operational. Any elements of the dining deck that show signs of damage, or cause a safety concern, must be replaced immediately. Loose particles, such as sand or loose stone, are not permitted.

On-Street dining decks must include a platform/deck that is flush with the sidewalk, the platform framing shall be a freestanding structural foundation that rests on the street roadway surface. No features or structural components may be permanently attached to the street roadway, gutter, curb, planting area, or sidewalk.

Decking shall be rated for exterior use and properly secured to the platform. The final flooring layer shall be a slip resistant material.

Weather resistant construction materials that are suitable for outdoor use are required, and all construction shall comply with the California Building Code. The horizontal maximum gap between the deck and the sidewalk, and any decking planks, must be less than one-quarter inch. The maximum vertical differential between the finished deck height and the height of the adjacent curb must be less than one-quarter inch.

11. FRAMING SYSTEMS
Framing systems shall be constructed to comply with the minimum Wood Frame Prescriptive Provisions for Residential Construction (2022 California Residential Code) Perimeter walls shall be constructed with a rigid framing system and completely cover all sides of the waterfilled barriers.

Perimeter wall frames shall be covered with cladding. The cladding shall be primed and painted on both sides or sealed with a waterproof coating on both sides.

Alternative materials are acceptable, provided that they meet the requirements of durability and aesthetics. The applicant must submit alternate materials for approval with the initial plan submittal, to be considered, including photographs and specifications of the alternate materials.
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14 Cladding shall be attached to the frame using screws or bolts (not nails). Screws shall not penetrate the water-filled barriers at any point.

Perimeter walls shall be fastened to the deck platform.

12. BOLTING TO ROADWAY
For decks installed prior to October 1, 2023, that utilized bolting, the applicant is required to remove the bolts and repair the pavement to restore it to its prior condition.

13. 42” REQUIREMENT
The perimeter walls shall have a maximum height of 42 inches when measured from the adjacent street level for proper street traffic line of sight. On a case-by-case basis, the Public Works Director may require a higher perimeter wall measured from the deck surface.

14. ELEMENTS HIGHER THAN 42”
Vertical posts in excess of the 42-inch maximum height are allowed to support lighting, or other approved amenities in these Guidelines. Posts must be integrated into the structure of the framing system and attachment details shall be submitted for approval by Building & Safety. Posts may be placed at the corners of the barrier system and spacing must be a minimum of 8 foot spacing along the outer perimeter. Post heights must be listed on the plans and include the measurement from deck surface. Posts may not exceed 10 feet in height, with the exception of one post that may be provided as a riser for electrical connections over the adjacent sidewalk. Wood posts shall be a minimum size of 4-inches by 4-inches, and their installation shall be integrated into the structure of the frame. Alternative materials will be considered on a case-by-case basis. Framing systems shall be constructed to comply with the minimum Wood Frame Prescriptive Provisions for Residential Construction (2022 California Residential Code) Posts or any other objects are not allowed to be mounted to the outside of the walls.

Existing poles mounted in this fashion must be removed and reinstalled per the above.

15. SHADE STRUCTURES AND UMBRELLAS
No roofs, easy ups, or similar structures are allowed in the dining deck area. Shade sails require a submittal of the manufacturer installation instructions or engineered design to reflect the recommended manner for attachment. Coverings may not be attached to any public or City-owned facilities or equipment. Sails are to be installed above the dining deck at a minimum height of 10 feet, and may extend over the sidewalk; otherwise, shades shall not extend onto any other area outside of the perimeter of the dining deck. All materials must be flame-resistant in accordance with the provisions set forth in California Code of Regulations, Title 19, Section 310. Sails and umbrellas shall not adversely affect visibility of adjacent properties. Attachments to buildings require Building and Safety review.

Umbrellas cannot extend past the perimeter of the deck or obstruct visibility into the deck. For example, they must not be angled or bent in a way that obstructs visibility into the deck. Umbrellas must be placed at least 5 feet away from propane heaters.

Umbrellas must be closed and secured at the end of each day. 909
15 16. PUBLIC VIEW OF THE OCEAN
All improvements, fences, railings, gates, tables, chairs, umbrellas, furniture or any other items or structures shall be designed and used in a way that protects all ocean views from the public right-of-way. The City Manager or designee shall retain the complete discretion to direct any permittee to curtail the use of any umbrellas, furniture or other items or structures to protect the public view of the ocean.

Clear plexiglass wind screens up to 24-inch in height above the perimeter wall may be proposed as part of the application and shall include calculations for wind loading and details for the method of attachment to the walls. Windscreen requests require Building and Safety review.

17. DECK AMENITIES
Bars, service and cashier stations, and food preparation areas are prohibited; however, applicants may provide small storage area(s) for certain amenities, non-perishable items such as menus, silverware, certain condiments, napkins, and subject to approval by the City and per Department of Public Health guidelines.

18. ACCESSIBILITY
All outdoor dining areas must comply with the Americans with Disabilities Act (ADA).

Plans must show the location and dimensions of the ADA designated seating. The business must provide the minimum amount of seating required for ADA, but not less than one (1) accessible table available for wheelchair users. Where tables or counters are provided, at least one of each feature shall be wheelchair accessible. A minimum 4-feet maneuvering clearance is required from the front edge of wheelchair seating area to the table or counter. “Café” tables are not accessible, because the center support column does not allow a wheelchair to roll under the table.

19. HEATING
Propane Heaters (portable) with enclosed flames are allowed. Any proposed propane heaters must be listed on the plan and include manufacturer specifications.

It is the applicant’s responsibility to ensure that all Propane Heaters are used per the recommendations provided by the manufacturer. Propane Heaters should be periodically inspected for serviceability. Propane tanks cannot be stored inside the deck area and must be stored in an upright fixed position to prevent damage and potential leaks. Propane heaters may not be placed underneath overhead covers, awnings, trellis', inside buildings or tents and they must have 5-feet clearance from any flammable/combustible materials. Propane heaters must maintain 6-feet clearance, both vertically and horizontally, from any street tree. The proposed storage areas for propane tanks must be noted on the plans.

Electric heating may be proposed and will be reviewed for approval on a case-bycase basis. The proposed electric heating must include electrical calculations and a single line diagram prepared and stamped by an electrical engineer.

20. ELECTRICAL SERVICE, LIGHTING, WIRES, AND OTHER UTILITY CONNECTIONS All proposed electrical specifications must be included on the plans, and all 910
16 equipment must be weatherproof and be listed and rated for outdoor use.

Decorative lighting may not exceed 40 watts. Overhead electrical service to the decks may be installed using a hard wired (permanent) method or the installation of an outdoor rated extension cord will also be allowed.

Electrical service that is installed using a hard-wired method shall comply with the 2022 California Electrical Code. When using the installation of an outdoor rated extension cord. The cord must be serviced using a weatherproof GFCI protected electrical outlet installed on the exterior of the building at a minimum of 10 feet above the walking surface and properly secured to a guy-wire. Installation of weatherproof electrical boxes at the building shall be installed using listed equipment that is rated for exterior use and installed per the manufacturer’s installation requirements. Any electrical work will require Building and Safety review.

One weatherproof GFCI protected electrical outlet installed at a height of 10 feet is allowed at the deck to power string lighting and speakers only. No other electrical outlets are permitted in the deck area.

No other utility lines (e.g., gas, water, etc.) may be connected to dining decks.

21. INSPECTIONS
Prior to operation of any on-street outdoor dining deck, the applicant shall obtain approval of inspections from all applicable agencies, including but not limited to, Public Works Department and Community Development Department.

22. BICYCLE PARKING
Installation of a bike rack(s) adjacent or affixed to the dining deck are strongly encouraged if space is available. A proposed location for a bicycle rack or bicycle corral will be considered and evaluated by Public Works staff before approval. The City of Hermosa Beach will provide and install bike racks, where feasible, unless deck permittee chooses to provide and install their own, in which case the rack design, specifications and installation must be reviewed and inspected by Public Works staff.

Bike racks are to be placed on the downstream side of decks provided the area is safe, they do not obstruct parking, vehicular or pedestrian traffic and must not encroach into the 2-foot offset between the deck and the adjacent parking stall. To request a review of the bike rack location, it must be shown on the site plan when submitting the application for review.

All new requests for Off-Street Commercial Outdoor Dining Encroachment decks that are not preexisting must include a bike rack adjacent to the dining deck.

The area dedicated to a bike rack will be deducted from the cost of the encroachment area square footage.

23. AESTHETICS/SIGNS
The City encourages all deck permittees to decorate their on-street dining decks in a manner that is appealing to the community and patrons. Though the City will have ultimate discretion on all aesthetic elements of the decks, it is highly encouraged to design and implement appealing decorative schemes on the outside walls (those walls facing the street) covering the water-filled barriers. Advertisements are 911
17 prohibited and décor must not explicitly promote the business nor its products and services (i.e., no representations of food items).

Additionally, the City will offer monetary grants to any business that repaints, improves or beautifies deck walls in a manner satisfactory to the City. A separate application for this grant is required and must include renderings and descriptions of the proposed improvements. The grant will take the form of a reduction of the permit fee.

Signage, banners, and other advertisements are prohibited on the dining decks except in a permanent, four square-foot sign stating the business name and/or logo.

Decks must also display signs of any neighboring business whose frontage is obscured by the deck. These signs must also be no larger than four square feet and must be developed in cooperation with the neighboring business owner. Signs may be located on the outside wall of the deck and must be incorporated into the deck décor in an aesthetically pleasing way. The sign may be painted or incorporated into the wall itself and must be installed flush with deck walls 912

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PUBLIC WORKS DEPARTMENT
1315 VALLEY DRIVE |HERMOSA BEACH | CA 90254
FOR QUESTIONS PLEASE CONTACT [email protected] OR CALL (310) 318-0214
OFFICE HOURS: MONDAY TO THURSDAY, 7:00 a.m. to 6:00 p.m.

STANDARDS OF OPERATION

1. OPERATING HOURS
Use of the encroachment area is limited to the hours of operation of the adjacent food establishment, not to exceed 12:30 a.m. Hours of operation must be within the current Conditional Use Permit (CUP) for the business. The more restrictive of the two closing times applies.

However, if in the sole discretion of the City Manager or designee, an earlier closing time is warranted, then the City Manager or designee may condition an encroachment permit to require on an earlier closing time. The allowable hours of operation within the outdoor encroachment area shall be consistent with Hermosa Beach Municipal Code Chapter 12.16.

2. SERVICE OF ALCOHOL
Alcoholic beverages may only be offered, sold, or consumed within the encroachment area pursuant to a valid California Department of Alcohol Beverage Control license for the area. Any other limitation on the business involving the sale or consumption of alcohol shall also apply in the encroachment area. If, in the sole discretion of the Police Chief, the encroachment area has demonstrated a repeated pattern of behavior involving the service or consumption of alcohol that violates this chapter or any other City permit or provision of law, then the City may prohibit the service of alcoholic beverages within the encroachment area.

Establishments serving alcoholic beverages that apply for an Outdoor Dining Encroachment Permit shall meet the additional requirements of the State of California Alcohol Beverage Control Board.

Seating arrangements shall provide for adequate space for food and beverage service (i.e., space for plates, glasses, utensils, etc.). Arrangements or furniture designed solely for beverage services are prohibited.

Conditional Use Permits (CUP)
All applicable existing conditional use permit (CUP) provisions for the adjoining commercial establishment are applicable to and shall be enforced within the encroachment area. Noise and other city requirementsshall be strictly enforced asif the encroachment area were an extension of the permittee's place of business. If the encroachment permit requirements conflict with the CUP requirements, the stricter requirements shall prevail.
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3. UNUSED DECKS
Any deck that goes unused for 30 days or more may have its application revoked and be required to be removed. If operator is unable to remove the dining deck, the City shall withdraw from the required deposit monies to remove the deck and dispose of the materials.

4. PUBLIC USE OF DINING DECKS
All on-street decks are available for use by the public, outside of normal business operation hours.

5. CLEANLINESS
Restaurant management shall keep the outdoor dining area clear of litter, graffiti, food scraps, and soiled dishes and utensils at all times. Trash receptacles shall be provided in outdoor dining areas used for consuming take-out items. Trash receptacles shall only be provided during operating hours, and removed when the business is closed.

At the end of each business day, establishments are required to clean (sweep or power wash) the area in and around the outdoor dining area and remove the debris to a closed receptacle. No debris shall be swept, washed, or blown into the sidewalk, gutter, or street in conformance with the City’s NPDES regulations.

Furniture and materials stored on the dining decks outside of regular business hours must be kept to a minimum. Furniture and materials must be stacked safely and in a manner that minimizes their footprint yet does not exceed five feet in height. Stored materials must also be moved to a corner of the dining deck at the end of each day and securely locked together.

6. DRAINAGE
It will be the responsibility of the applicant to ensure that drainage paths are kept clean and clear of litter and debris, and their parts are replaced as needed to allow for proper functioning drainage operations.

Daily removal of litter and debris from the deck and adjacent area, as well as removal of debris and/ or pooled water from the screened deck drainage inlets and underneath the deck, should be performed once per week at a minimum.

Additional drainage channels running under the deck perpendicular to the curb (from street side of deck to curb) are strongly encouraged to help minimize flooding risk and deck damage.

At locations of curb drains no decks are allowed over them without prior engineering assessment and design by a professional engineer.

After rain events, inspection and cleaning of screened drainage inlets and area underneath deck by the business permittee is required.

7. HEIGHT REQUIREMENTS
Any approved hanging, or overhead objects, including umbrellas, must have a minimum vertical clearance of at least 8 feet (or 96 inches), measured from the sidewalk or deck surface level, and cannot exceed 10 feet (including poles, posts, canopies, lighting, signs) from the deck surface; this excludes the electrical connection over the sidewalk detailed in Section 20—Electrical Service. 914

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Clearance under awnings and canopies shall comply with Building Code requirements. Any approved overhead objects must not extend beyond the exterior edge of the deck in any direction.

All other visual obstructions located 42-inches above the deck surface that are not covered in these Guidelines are not permitted.

8. TELEVISIONS
Televisions are prohibited within the encroachment area.

9. USE OF BARRIER WALLS
Loose items on top of the barrier walls are prohibited. Barrier walls may not be used for seating, or food and drink service.

Vertical obstructions located above the top of the perimeter wall, including, but not limited to posts, plants, or other decorations, on top of the barrier wall may be considered for approval provided they are fully secured to the barrier wall, do not extend beyond outer edge of the barrier wall, do not block the visibility of the dining area for safety, block ocean views, nor create a sight line obstruction impacting roadside safety or visibility of traffic control devices.

Plants should be in planters that are integrated into the barrier system design. Plants must be maintained by the permittee.

10. MUSIC
Speakers for producing ambient music on the dining decks must comply with relevant Municipal Codes related to noise and nuisances (HBMC 8.24 and 8.28). Installation of speakers to provide ambient music on the decks will require an amplified sound permit, to be obtained from the Public Works Department (currently $201). These permits are valid for one year and are revokable at any time should a violation be observed.

11. NOISE
All dining decks shall comply with all Hermosa Beach Municipal Code Guidelines, including the applicable noise ordinances regulating amplified noise.

12. LIGHTING
Lighting within the perimeter of the dining deck may only be illuminated during business hours and should have an automatic control or timer for shut off when daylight is available or during nonbusiness hours. Lighting may not flash, create a glare for drivers, or illuminate neighboring properties or decks.

The use of candles is prohibited.

13. HEATING
No open flames are permitted on the decks. Patio heaters with enclosed flames are allowed.

Electric heaters are allowed.

Regulations for Propane Heaters are as follows:
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 Liquid Propane Gas (LPG) is flammable and can be readily ignited by a spark. If confined or exposed to fire, propane poses an explosive hazard.
 Only one additional propane tank can be stored on-site. Propane tanks cannot be stored inside or under coverings. They must be stored in an upright fixed position to prevent damage and potential leaks.
 Propane heaters may not be placed underneath overhead covers, awnings, trellis, inside buildings or tents and must have 5-feet clearance from any flammable/combustible materials.
 Propane heaters must maintain 6-feet clearance, both vertically and horizontally, from any street tree.

14. SIGNAGE
No signs or banners of any kind shall be placed, displayed, or erected on barriers with the exception of the business name sign and signs for obstructed businesses, as described elsewhere in these guidelines.

15. MAINTENANCE
All furnishings, decks and barriers shall be maintained free of appendages or conditions that pose a hazard to pedestrians, vehicles, or cyclists, and ensure visually impaired pedestrians can detect the objects safely. No appendage shall extend outside the encroachment area. No persons, including customers, shall place anything within or near the encroachment area that could pose a tripping hazard or interfere with accessibility of vehicles, pedestrians, or cyclists, such as animals tied to signs or utility poles, bicycles, etc.

The permittee is responsible for the continued maintenance of the encroachment area, maintenance of surface materials, graffiti removal, and upkeep of any structural work necessary.

The deck structure, electrical connection and maintenance of the wood and flooring of the encroachment area in general, including artwork and painting, shall be periodically maintained to prevent loose screws, split wood, damaged wires, tripping hazards, and general disrepair of the encroachment area.

Each water barrier must be filled with water per the manufacturer’s specifications and shall be maintained filled throughout the duration of the permit. The water filled barricades shall be periodically inspected for water level to ensure there is no water leakage. Inspection by business staff shall be done through the fill opening in the wood cover. Any water barrier that does not hold water must be removed and replaced immediately.

Permittees who fail to maintain a clean, safe, and accessible outdoor dining area may be subject to enforcement, as described below and in the HBMC. If maintenance issues are not resolved, the encroachment permit may be revoked, and the business will be required to remove the dining deck at their own expense.

16. PLANTS
Plants require regular watering and plant maintenance. Stressed or dying plants shall be promptly replaced. Because plant fertilizers contain materials that can stain the pavement, water drainage from any plants onto the adjacent right-of- way shall not be allowed. Potted plants shall have saucers 916

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or other suitable systems to retain seepage. Flowerpots and planters shall be kept in good condition, any damaged pot or planter shall be immediately removed from the encroachment area.

17. REPAIR OF DAMAGE
It is the permittee’s responsibility to ensure no damage to the public right of way occurs. The permittee shall be responsible for the restoration of any damage to the public right of way caused by the installation, or use of, the dining deck, immediately upon removal. All repair work shall be completed per City requirements, in coordination with City staff, and with required permits.

18. REMOVAL AFTER PERMIT TERMINATION
Upon termination of the Outdoor Dining Encroachment Permit, the Permittee shall immediately remove the barriers around the outdoor dining area, return the right-of-way to its original condition, and remove all personal property, furnishings, and equipment from the encroachment area. The deposit shall be refunded to the permittee less any offset for repairs or non-payment of fees.

19. OTHER GOVERNMENTAL APPROVALS
These guidelines regulate the design and operation of on-street dining deck encroachment areas.

However, they do not provide information on all the government agency requirements for starting a new restaurant or expanding an existing one. Business owners must secure the appropriate licenses and permits from the State Alcohol Beverage Control Board, Los Angeles County Health Department, the City of Hermosa Beach Community Development Department, and the Business License Office.

Encroachment areas shall comply with all applicable building and fire code regulations.

Encroachment areas shall also comply with all State and federal laws providing access for the disabled.

20. PERMANENCE
The encroachment area is not a vested right and is a revokable, temporary installation within the Public Right of Way. While durability and quality of materials is desired and recommended, any improvements, fences, railings, gates, tables, wiring, chairs, or other equipment related to the Commercial Encroachment shall be installed in such a way that, within ten (10) days' notice from the City, can be entirely removed and the area be returned to its previous condition prior to the construction of the dining deck.

The City reserves the right to enter upon the encroachment area for purposes of inspection, replacement, repair, or maintenance of public facilities above, on or under the right-of-way. For non-emergency, planned work or repairs to the City or public utility infrastructure, the City will provide the permittee with advance notification at least ten (10) days prior to commencement of work and it will be the responsibility of the permittee to remove the encroachment at their cost.

21. REGULATIONS WITHIN THE PUBLIC RIGHT-OF-WAY
The encroachment shall be designed and operated in compliance with any regulations specific to public parking areas or vehicular streets adopted by resolution of the City Council and any further regulations promulgated by the City Manager or designee in furtherance of City Council direction. 917

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22. OTHER PERMITTEE RESPONSIBILITIES
The encroachment area shall be managed, operated, and maintained as an integral part of the adjacent dining establishment.

The permittee is responsible for running and operating the outdoor dining area and shall not delegate or assign that responsibility. Outdoor dining areas shall be continuously supervised by management.

Patrons are prohibited from disturbing customers or passersby on the adjacent right-of-way by loud, boisterous, and unreasonable noise, offensive words, or disruptive behavior.

If disposable materials are used, the establishment shall comply with all applicable City recycling and waste diversion programs.

All plans and permits for the outdoor dining area approved by the City shall be kept on the premises for inspection at all times when the establishment is open for business.

On-street dining deck permittees are responsible for providing and maintaining access to the City’s infrastructure (e.g., utility poles, gas valves, manhole covers, wastewater systems, fire hydrants, cisterns and catch basins, underlying pavement, and curb and gutter) Deck permittees must maintain the safety and cleanliness of the sidewalk and parking lane space and its adjacent area.

Outdoor dining areas shall be operated in a manner that meets all requirements of the Los Angeles County Health Department and other applicable regulations.

23. ENFORCEMENT
Notice of violation of the outdoor dining design standards or standards of operation shall be made in writing to the Permittee by any Code Enforcement Officer, Public Works Inspector, Building Inspector, Police Department Official, or Fire Department Official of the City. A copy of the notice shall be filed with the Public Works Director. The Permittee shall immediately cure the violation upon receipt of notice. If the violation is not cured within the timeframe prescribed on the notice to the Permittee, the City Manager or City Manager’s designee may suspend or revoke the Encroachment Permit.

The Outdoor Dining Encroachment Permit is in the nature of a revocable license and is revocable at will by the City. The City Manager or City Manager’s designee may revoke an Outdoor Dining Encroachment Permit upon ten (10) days written notice, with or without cause. The City Manager or City Manager’s designee’s decision may be appealed to the City Council pursuant to the provisions of Chapter 12 of the Hermosa Beach Municipal Code. The City Council’s decision shall be final.

In the event that an imminent safety hazard is identified, and the permittee fails to address the issue, the City reserves the right to remove or mitigate the safety issue immediately at the expense of the permittee. Violations are also subject to citation.
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ON-STREET COMMERCIAL OUTDOOR DINING

ENCROACHMENT PERMIT APPLICATION

GENERAL INFORMATION
The Hermosa Beach Outdoor Dining Program was established to help improve and enliven Hermosa Beach’s commercial areas by allowing businesses to create outdoor dining areas in the public right-of-way, including on-street dining decks.

APPLICABILITY
 NEW OUTDOOR DINING ENCROACHMENTS (ALL EXISTING DECKS MUST REAPPLY)  MINOR ALTERATIONS OF OUTDOOR DINING ENCROACHMENTS
 RENEWALS
APPLICATION FEE(S) $ 1,895.24
TERM OF ENCROACHMENT PERMIT: ONE YEAR FROM DATE OF APPROVAL APPLICATIONS MUST INCLUDE:

1. COMPLETED APPLICATION (SEE PAGE 2)

2. SITE PLAN (SEE PAGE 3 FOR CHECKLIST)

3. SITE PLAN CHECKLIST

4. APPLICATION FEE

5. AFFIDAVIT

6. APPLICATION FOR BEAUTIFICATION GRANT (OPTIONAL)
Applications are not considered complete unless and until all above-mentioned items are submitted, including items detailed in the Site Plan checklist. 919

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HOW TO SUBMIT:

ELECTRONICALLY: [email protected]
SUBJECT LINE: “[BUSINESS NAME] - ON-STREET OUTDOOR DINING APPLICATION” IN-PERSON: PUBLIC WORKS DEPARTMENT – HERMOSA BEACH CITY HALL The requirements for On-Street Commercial Outdoor Dining Program are governed by Hermosa Beach Municipal Code (HBMC) Chapter 12.16.090. The City has prepared the On-Street Dining Deck Design and Operational Guidelines, dated February 2024 ("Guidelines”) to assist businesses in obtaining encroachment permits.
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ON-STREET COMMERCIAL OUTDOOR DINING PERMIT APPLICATION
Application Type (circle one): New Minor Alteration Renewal Applicant Information
Business Name: Business Type
Contact Person:

Address: City: State & Zip:

Phone: Email:

Contractor License Number and Insurance
Information (if known). A no Fee staging
permit for construction is required:

Business - Property Owner Information
Name:

Address: City: State & Zip:

Phone: Email:

Outdoor Dining Design Standards and Operations
Where is the proposed outdoor area to be located?
What is the proposed square footage of the outdoor area? What is the sidewalk width?
Outdoor Dining Design Standards and Operations
Regular Business Hours of Operations: Open Close
What are the proposed hours of operation of the encroachment area? Alcohol Services (if applicable)
Will alcohol be served in the outdoor area? ☐ Yes ☐ No
What type of ABC License does the existing establishment have? Certification
Under the penalty of perjury, I hereby certify that all the information contained herein is true and correct and I am a duly authorized representative of the above-listed business. I further certify that I have read, understood, and accept the terms of the On-Street Dining Deck Design and Operational Guidelines, dated February 2024 ("Guidelines”). I agree to operate and maintain the premises in compliance with all applicable rules and regulations. Failure to do so may result in revocation of any permit issued for this application.

Applicant Print Name Applicant Signature

FOR CITY USE ONLY
Permit Number: Date Received:

Community Development Review Required?
☐ Yes ☐ No
Community Development Review Approved?
☐ Yes ☐ No
Police Review Required? ☐ Yes ☐ No Police Review Approved? ☐ Yes ☐ No APPROVED BY:
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ON-STREET OUTDOOR DINING SITE PLAN CHECKLIST
All site plans must include the following items and comply with the Section III, Design Standards, of the Guidelines:
(Please include completed checklist with application submittal) NOTE: Information may be located on separate diagrams or sheets, if necessary. 

1. Stamped by a licensed design professional (i.e., architect or civil engineer licensed in the State of California).


2. Drawn to scale, include north arrow, legend, all property lines, and dimensions of all major elements, existing and proposed.


3. Location(s) of existing street, traffic, and sidewalk elements, including infrastructure. Include parking meter numbers.
 4. Street drainage details, including flow direction, catch basins, access 

5. Visible utilities (e.g., storm drain, water valves, etc.); and vertical obstructions in the encroachment area or between the building face and the dining area (e.g., streetlights, trees, etc.).


6. Delineate the entire frontage area from the building to the centerline of street as well as the curb line, and frontage of immediately adjacent properties.  7. Dimensions of the outdoor dining area and entry points from the sidewalk. 

8. Proposed materials for the flooring and verification of ADA compliance at the curb as well as proper drainage opening at the curb line. 

9. Provide detail, intended use, and attachment details for any vertical elements (e.g., posts, planters, sunshade, umbrellas, lighting, speakers, etc.), that exceed the height of the exterior barrier.


10. Accessibility requirements, including Americans with Disabilities Act (ADA), including path of travel, amenities, and signage.
 11. Seating and furniture plan (dimensioned) for the proposed encroachment area. 

12. Plan view, section view(s), and details as necessary to show the proposed design and height of elements in relation to the roadway and sidewalk surface. 

13. Locations of electrical connections and outlets, existing and proposed, including method of attachment and vertical clearances.


14. Provide details for the fabrication of the covering for the barriers, including the necessary framing, exterior materials, hardware used, and any proposed attachments to the exterior of the barrier coverings and connections to the flooring system.
 15. Provide images of any signs or artwork proposed on the barrier covering.  16. Show the proposed arrangement of the pinned water-filled barriers.  17. Bicycle storage placement and details if applicable. 

18. The City has the right to request additional documents as deemed necessary by the Director of Public Works, or designee.
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CITY OF HERMOSA BEACH

COMMERCIAL OUTDOOR DINING

ENCROACHMENT PERMIT AND COVENANT

RECITALS
A. THIS ENCROACHMENT PERMIT is made and entered into at Hermosa Beach, California, this______ day of _________________, 20____, By and between the CITY OF HERMOSA BEACH, a municipal corporation in the county of Los Angeles, State of California, hereinafter referred to as "CITY", for the purpose of permitting a portion of the public rightof-way to be used for outdoor dining, and:
_______________________________________________________________________________________ Hereinafter referred to as "PERMITTEE" which parties do agree as follows:

B. PERMITTEE represents that they are the owners of the business located in Hermosa Beach, legally described as follows: Lot __
Block Hermosa Beach Tract Commonly
known as: Hermosa
Beach, CA 90254 ____________
And doing business as .

C. The parties further agree that an encroachment permit application was presented to the Public Works Department of the CITY for permission to encroach in and over a portion of the public right-of-way at:
for the sole purpose of outdoor dining with improvements consisting of the following:
square feet of CITY easement to be used for outdoor dining. An exhibit of the proposed improvements and encroachment is on file in the Public Works Department of the CITY and is by reference incorporated herein and made a part hereof.

D. The term of this permit shall be issued for an initial one-year term, subject to renewal for each subsequent year at the rate of ____ per square foot for 923

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square feet, for a monthly rate of ($_______), subject to annual increases. The rate shall be paid quarterly, in advance, ($ quarterly). The payment schedule is as follows:

PAYMENT DUE FOR
July 1, Every Year July, August, and September,
October 1. Every Year October, November, and December
January 1, Every Year January, February, and March,
April 1, Every Year April, May, and June,
As explained below, this Encroachment Permit is revocable at any time and for any reason by the City at the sole discretion of the City.

E. PERMITTEE further agrees to deposit a cash deposit to be held by the City to guarantee the removal of the improvements. This deposit shall be in the amount of $______________________and is evidenced by receipt number . This deposit shall be held by the CITY to provide for the removal of improvements on the public right-of-way in the event the PERMITTEE does not restore the area upon the revocation, termination or expiration of this Encroachment Permit. The encroachment improvements shall be removed by the PERMITTEE at no cost to the CITY upon a written notice to the PERMITTEE from the CITY. In the event PERMITTEE does not remove the improvements and restore the area, the City may, in its sole discretion, use the cash deposit to remove the improvements and restore the area.

PERMIT

1. Encroachment Permit. A revocable encroachment permit is hereby granted to the PERMITTEE on the right-of-way described in the recitals hereinabove as described in the drawing attached hereto as Exhibit A in accordance with the provisions of Chapter 12.16 of the Hermosa Beach Municipal Code and the provisions of this permit.

2. Term. This permit shall take effect on the date set forth hereinabove and shall remain in effect until and unless revoked by City or voluntarily relinquished or abandoned by PERMITTEE or the owner of the property “PROPERTY OWNER” at any time. 924

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For the sake of clarity, either the PERMITTEE or the PROPERTY OWNER may either jointly or solely abandon this Encroachment Permit at any time.”

3. Termination. This permit is revocable at any time by the City, with or without cause, in City's sole discretion.

4. Assignment. This permit shall not be assigned or transferred.

5. Indemnification. PERMITTEE shall indemnify and hold harmless the City, its officers, employees and agents from and against all claims, causes of action, liabilities and damages for injuries to persons and property, including reasonable costs of defense and attorney fees, arising from PERMITTEE’s encroachment on City property as described in Exhibit A, including but not limited to PERMITTEE’s negligent or wrongful acts, errors or omissions in the construction, erection and continued maintenance of the encroachment in its location. PERMITTEE shall promptly pay the amount of any judgment rendered against City, its officers, employees, and agents for any such indemnified claims, and reasonable costs and attorney fees incurred by City in the defense of such claims. It is understood that the duty of the PERMITTEE to indemnify and hold harmless includes the duty to defend as set forth in section 2778 of the California Civil Code. Acceptance of insurance certificates and endorsements required under this Agreement does not relieve the PERMITTEE from liability under this indemnification and hold harmless clause. This indemnification and hold harmless clause shall apply whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

9. City’s right of entry. PERMITTEE acknowledges the City’s absolute right to enter upon the encroachment area for purposes of inspection, replacement, repair, or maintenance of public facilities, including the public right-of-way, above, on or under the right-of-way and PERMITTEE expressly waives any and all claims for damages to its encroachment resulting from such actions. Further, PERMITTEE expressly acknowledges that the City may have to resurface or maintain the public right-ofway which requires the PERMITTEE to remove any improvements at its sole cost.

10. Damage to right-of-way. PERMITTEE assumes responsibility for all damage to City’s right-of-way caused by construction or maintenance of the encroachment and shall reimburse City for correction of any such damage. Upon failure of the PERMITTEE to reimburse City, the cost incurred by City in removing the encroachment shall be a debt of the PERMITTEE to the City, and recoverable by City in any manner provided by law.

11. Restoration of premises. Immediately upon receipt of revocation notice, PERMITTEE shall, at its sole expense, remove the improvements related to the encroachment and restore the property to its condition prior to placement of the improvements by any deadline given by the City. In the event PERMITTEE fails to do so, City shall have the option of removing the encroachment at PERMITTEE’s expense and PERMITTEE waives all claims for damage to the encroachment or PERMITTEE’s adjacent 925

1315 Valley Drive, Hermosa Beach, CA 90254 | hermosabeach.gov | HermosaBeachCity HermosaBchCity
property or improvements resulting from such removal. The cost incurred by City in removing the encroachment is a debt of the PERMITTEE to the City, and recoverable by City in any manner provided by law.

12. Taxes. PERMITTEE acknowledges that this permit may create a taxable interest and that PERMITTEE shall be solely responsible for satisfaction of any property taxes levied on the property.

10. Compliance with Hermosa Beach Municipal Code. PERMITTEE shall perform all work in full compliance with all applicable codes, ordinances, and laws, and obtain all necessary permits.

11. Maintenance and Operation. During the term of this permit, PERMITTEE shall at its sole expense maintain and operate the encroachment area in good condition and appearance, and in accordance with all ordinances, and the City’s On-Street Dining Deck Design and Operational Guidelines, and shall not allow a nuisance condition to exist on the encroachment area.

12. Insurance. PERMITTEE, at the PERMITTEE’s own cost and expense, shall procure and maintain, for the duration of the permit, the following insurance policies:
(a) Workers Compensation Insurance as required by law. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change.
(b) General Liability Coverage. PERMITTEE shall maintain commercial general liability insurance in an amount of not less than two million dollars ($2,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this permit or the general aggregate limit shall be at least four million dollars ($4,000,000) (c) Endorsements. The general liability insurance policy shall be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California, or which is approved in writing by City, and shall be endorsed as follows:
“The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of the construction, improvement or exploitation of any of the improvements or activities authorized by this Encroachment Permit.”
926

1315 Valley Drive, Hermosa Beach, CA 90254 | hermosabeach.gov | HermosaBeachCity HermosaBchCity
(d) The general liability policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers. Any insurance maintained by the CITY, including any self-insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy. (e) The general liability insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.
(f) The general liability insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents. (g) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers.
(h) The insurance provided by the general liability policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the CITY.
(i) Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the CITY’s option, PERMITTEE shall demonstrate financial capability for payment of such deductibles or self-insured retentions.
(j) PERMITTEE shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of activities under this permit.

Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement.

In the event PERMITTEE or PROPERTY OWNER sells, transfers, leases, or otherwise conveys any interest or right of possession in the property, PERMITTEE or PROPERTY OWNER shall provide any such purchaser, lessee, or transferee a copy of this instrument. 927

1315 Valley Drive, Hermosa Beach, CA 90254 | hermosabeach.gov | HermosaBeachCity HermosaBchCity
IN WITNESS WHEREOF, permittee has executed this Encroachment Permit and Covenant on the date first written above.

PROPERTY OWNER (Signature)

PROPERTY OWNER (Print)

PERMITTEE (Signature)

PERMITTEE (Print)
APPROVED BY:

JOE SANCLEMENTE

DIRECTOR OF PUBLIC WORKS
ATTEST:
___________________________________________

MYRA MARAVILLA, CITY CLERK
928

4-
929

CITY OF HERMOSA BEACH
RESOLUTION NO. 24-

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

ESTABLISHING FEES FOR COMMERCIAL ENCROACHMNET PERMITS AND ANNUAL PERMIT REAPPLICATION.

WHEREAS, the City Council adopted Ordinance No. 23-1463 which provides for establishing a long-term outdoor dining program in the public right-of-way; and, WHEREAS, in accordance with Ordinance No. 23-1463, City Council also approved operational and design guidelines for these outdoor dining areas both onstreet and off-street;

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

SECTION 1. City staff have developed an application process for outdoor commercial encroachment areas that includes interdepartmental review and identifies three different encroachment types: standard off-street (with fixed structures and furniture), simple off-street (with mobile structures and furniture), and on-street (in the roadway).

SECTION 2. The application process also includes an annual reapplication and review for all encroachments and a review for minor alterations.

SECTION 3. City staff has estimated the time required from various departments to complete this review and has consequently estimated the fees required to compensate for this work.

SECTION 4. That the following fees be added to the City’s Master Fee Schedule for commercial encroachment application review and put into effect immediately. These fees will replace all previous Outdoor Dining Encroachment permit fees.

Outdoor Dining Encroachment Permits Fee
Application for standard off-street encroachment $1618.48 Application for simple off-street encroachment $492.20
Application for on-street encroachment $1895.24
Annual Renewal $397.70
Minor Alteration $313.02
930

PASSED, APPROVED and ADOPTED on this 27th day of February, 2024 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
931

ON-STREET OUTDOOR DINING DECK MEETING MINUTES
01/18/24 10AM - Community Center, Room 4
Attendance List:
• Coastal L&B
• Red & Louies
• Brothers Burritos
• Hermosa Brewing Co
• Pedones
• The Artist Mill (Retail)
• Creamy Boys
• Innate Group (Commercial Real Estate Specializing in Restaurant) • Hook & Plow
• Proudly Serving
• Laura Pena
• El Tarasco
• Mark (Property Owner of Creamy Boys and Artist Mill)
• Chamber of Commerce President, Jessica Accamando
• City staff: Joe SanClemente, Doug Krauss, Magvern By
City staff gave an overview of the program to date and provided an estimated timeline and list of next steps to get the on-street dining guidelines finalized. Staff then invited feedback from attendees.

Likes:
• After implementation, meeting with City every 6 months and have regular communication.
• Live or ambient music in dining deck itself and not on building frontage pointing to deck.

Dislikes:
• Submitting the same plan every year if there is no changes, hoping to have an option for a check box that there is no change and have a more streamline process.

Wants:
• Sun shade/sails to block the sun, similar to Japonica, works better than umbrellas. Preferably, to connect from building to deck. • Service station, either permanent or moveable.
932
• Electricity/power: either 1 outlet or multiple. (not very popular) • Heaters/way to heat the deck:
o Propane area with gas lines
o Heating/fire table
Questions:
• Hours of Operations.
• Umbrellas might block signage of another business, what are we going to do to not block other businesses?
• Price per square foot.
• Insurance liability if we were to keep the deck open to the public outside of hours of operation.

Concerns and Comments:
• City staff going to Council with guidelines the 2nd meeting of February. • California Restaurant Association may have some standard guidelines for the on-street dining decks.
•
• Storefront being blocked and cannot get business.
• Transients that camp out in the decks.
• E-bikes in path of travel of sidewalk when serving food to deck. • Separation between decks for access.
• Time constraint. If approved in February council meeting, how much time until summer to complete everything?
• Concerns about price increases every year per square foot. Few stated that they will not keep the deck if over a certain amount. 933

ON-STREET OUTDOOR DINING DECK MEETING MINUTES
02/14/24 10AM – Community Center, Room 4
Attendance List:
• Coastal L&B
• Ocean Diner/Java Man
• The Artist Mill
• Pedones Pizza
• North End
• Stoked Chocolates
• El Tarasco
• 1140 Hermosa Ave
• Zanes
• Creamy Boys Ice Cream
• Chamber of Commerce President, Jessica Accamando
• City staff; Joe SanClemente, Doug Krauss, Guillermo Hobelman, Magvern By City staff provided an overview of the program to date with updated guideline details.

Staff explained that the guidelines are proposed and subject to change by Council.

Staff also explained the general process of Council discussion and approval and the timing of the submittal and approval process. Staff then invited feedback from attendees.

Questions:
• Are their other options for barriers besides water-filled barriers. Staff explained that water-filled are the most practically accepted method but would take other options into consideration.
• Hours for amplified sound outdoors? Does amplified indoor sound apply for outdoors? When does the music have to be turned off? Will the hours for the covid program be the basis? Staff explained that the music must stop by 9pm and that the proposed permit is only for on-street sound. • Will fees be lower for renewal? Staff explained that they will and discussed the five fees being proposed.
• Can a horizontal beam be attached to vertical posts? Staff explained that this is potentially allowable with review.
• How will insurance work for those that share decks? How will insurance work if the decks are open to the public when not in use? Staff discussed that every user of the deck must have insurance.
• How will sharing deck and frontage work? The process for sharing was explained. • Could they add solar powered lighting? Staff responded that this is allowed. 934
• Is there a requirement for umbrellas so they would not fly away? There are no specific base specifications required but umbrellas must be placed in a safe manner.
• Addition of TV facing away from deck with no sound? This is not allowed but can be explored at a later date.
• What type of electrical addition would require a building and safety permit? The Building Official discussed some of the scenarios that would require additional review and perhaps permits.

Comments from attendees:
• If insurance requirements are changed, provide as much advanced notice as possible as it takes about 3 months to change policy.
• Obtain an ADA certification if not done so already.
• Improve lightning in upper Pier. Ask neighboring businesses to keep lights on until 2 am?
• There will be an increased foot traffic starting in late April for Rams Draft Day, Beach Activation, Surfer’s Walk of Fame, and Fiesta Hermosa. 935
936
City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 02-27-24 17:00
Agenda Name Comments Support Oppose Neutral
c) REPORT 24-0074 ADOPT RESOLUTIONS ESTABLISHING

OPERATIONAL AND DESIGN GUIDELINES FOR ON-STREET

COMMERCIAL ENCROACHMENT AREAS CITYWIDE AND

ESTABLISHING

FEES FOR COMMERCIAL ENCROACHMENT PERMITS AND ANNUAL

PERMIT REAPPLICATION
(Environmental Programs Manager Doug Krauss)
5 0 1 3
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown.

Overall Sentiment
Agenda Item: eComments for c) REPORT 24-0074 ADOPT RESOLUTIONS ESTABLISHING OPERATIONAL AND DESIGN

GUIDELINES FOR ON-STREET COMMERCIAL ENCROACHMENT AREAS CITYWIDE AND ESTABLISHING

FEES FOR COMMERCIAL ENCROACHMENT PERMITS AND ANNUAL PERMIT REAPPLICATION (Environmental Programs Manager Doug Krauss)
Overall Sentiment
Laurie Armer
Location: 90278, Redondo Beach
Submitted At: 2:51pm 02-27-24
The seating for restaurants along Hermosa Avenue are blocking the view of other store fronts. This is unfair for the shops. The smaller shops need to be visible to the passersby. There needs to be equality for all stores and the same visibility from all perspectives, people walking and driving by.

Virginia Horstman
937
Location: 90254, Hermosa beach
Submitted At: 2:51pm 02-27-24
My name is Virginia Horstman and I own Stoked Chcolates which is located directly behind the outdoor dining deck of another restaurant. It seems unjust that another business has the rights to this area and not the business located in the building directly behind it. We should have the first right of refusal as the other restaurant has other available frontage. This particular deck is mostly blocking three other business instead of their own property. With its umbrellas, heaters & stacked chairs it blocks the direct sight line of all the walking traffic from the Pier. This is a major problem for the survival of my business. I am Hermosa resident with two children in the school district and am working hard to contribute value to our small community and it seems unjust that my own store frontage be taken from me and given to another restaurant. For the general welfare of the Hermosa Pier area we need to protect the interests of our small businesses so we can create a diverse and thriving economy for our downtown.

The turnover rate in this area is very high and blocking the sightlines of our small businesses and giving away their store frontage to other larger businesses will surely be detrimental to the small business community as a whole and set an unwelcome precedent.

Frank Paine
Location: 90277, Redondo Beach
Submitted At: 2:49pm 02-27-24
Ginny Horstman is a Hermosa resident raising her young family here. She creates a unique and delicious beach and surf themed chocolate product which is a natural for her location on Hermosa Ave. In order to be successful it is important for her shop to be visible. It is a tiny space compared to surrounding businesses, so visibility is critical. Please support her efforts to make her business successful.

Frank and Annie Paine
Morgan Sliff
Location: 90254, Hermosa Beach
Submitted At: 2:38pm 02-27-24
I hope that Stoked Chocolates and Creamy Boys — two new, unique and exciting businesses on Hermosa Avenue — are given an opportunity to utilize and pay for outdoor space adjacent to their storefront and that their businesses are not obstructed.

Brendan Simmons
Location: 90505, Torrance
Submitted At: 12:32pm 02-27-24
With new business opening in Hermosa Beach such as Stoked Chocolates, I feel it is essential these businesses have full line of sight exposure to potential shoppers walking along all sidewalks without their line of sight being blocked by another establishments outdoor dining structure which was erected during the pandemic to help these restaurants survive. A new establishment needs to be seen in order to survive as well which will only benefit to small business owner as well as the city.
938

ON-STREET DINING DECK

GUIDELINES
February 27, 2024
939

OUTDOOR DINING
• During the COVID-19 pandemic, the City
moved quickly to offer outdoor dining and
other programs
• On-street dining decks
• Downtown lane reconfigurations
• Private property dining
• Additional encroachment areas on Pier
Plaza
940

OUTDOOR DINING
• In December 2021, City Council directed staff
to come back with a “permanent” outdoor
commercial encroachment program
• For encroachments in public right-of-way
• Pier Plaza
• Off-street (i.e., Martha’s on 22nd Street and
sidewalks)
• On-street within parking spaces (Dining
Decks)
941

OUTDOOR DINING
• On April 25, 2023 Council considered items related
to the long-term program
• On May 23, 2023 Council approved an Ordinance
revising the Commercial Encroachment section of
the HBMC, as well as:
• A three-year phased fee schedule to take effect
July 1, 2023
• Revised maximum encroachment sizes
• Permanence of bike lane and lane
reconfigurations downtown
• Guidelines for off-street commercial
encroachments
942

ON-STREET DINING DECKS
• Staff has gathered feedback from Council,
community, and businesses for more than three
years
• Additional stakeholder meetings held recently
• Balance between safety, aesthetics, cost and
practicality
• Developed to allow existing decks to be able
to continue with only minor modifications
• New decks will be held to more strict
requirements
943

ON-STREET DINING DECKS
• Staff surveyed cities around the region and worked
closely with neighboring agencies to assess optimum
standards
• Clear, established standards are not available - instead a wide range of designs exists
• Staff revised the following aspects of the program:
• Traffic Safety
• Operation and design
• Aesthetics
• Liability
• Administration
944
GUIDELINES – TRAFFIC SAFETY
• Staff determined current conditions are favorable
for traffic safety
• Water barriers are accepted and practical
• New lower speed limits on Pier Avenue and
Hermosa Avenue
• Bike lanes downtown help provide a buffer zone
• Additional safety enhancements
• Delineators and reflective striping on deck walls
• Reinspection of existing water barriers
945
GUIDELINES – OPERATION AND DESIGN
• Staff worked to minimize and clarify required changes • No roofs will be allowed, instead umbrellas and
“shade sails” can be installed
• Electrical service is allowed but only one outlet for lighting and heating
• Propane and electric heaters allowed but no open
flames
• Speakers for ambient music will be allowed with a
permit
• Bike racks encouraged and would be installed by
City
946
GUIDELINES – OPERATION AND DESIGN
• Adequate drainage along curbline must be ensured
• ADA accessibility is emphasized
• Deck walls must not exceed 42” from street surface to ensure proper sight lines for vehicles
• Plants and décor allowed on walls on a limited basis
and must be secured
• Clear windscreens would be allowed up to 24”
• All furniture must be stacked, locked up and tucked
away each night
947
GUIDELINES – AESTHETICS
• City has discretion on aesthetic elements during
plan review
• Guidance to integrate planters/decor into the
barriers
• Durability of materials encouraged and annual
inspection of deck condition
• Guidance for use of shade sails
948
GUIDELINES – AESTHETICS
• A discount of up to $600 on encroachment
permit fees is proposed to encourage
beautification of deck walls
• Deck operators may apply for the discount
• City worked with the Chamber of Commerce
and a local non-profit to identify local artists
suited to this work
949
GUIDELINES – LIABILITY
• Working with City Risk Management staff and
third-party experts, the City has determined to
increase the required insurance minimums from
$2 million aggregate and $1 million per
occurrence to $4 million aggregate and $2
million per occurrence
950
GUIDELINES – ADMINISTRATION
• Applicants must provide affidavit assuring
the application information is true and
accurate.
• Will include proof of notification for
businesses that are sharing decks or
encroaching upon neighboring property
• Annual renewals will include inspections by
City staff
951

PROPOSED FEES
• Currently outdoor dining encroachment
permit fees are $1371.74
• Staff identified five different fees to help
administer permit applications for three types
of encroachments, annual renewals, and
minor alterations
• Proposed fees were informed by off-street
permit and plan review process
952

PROPOSED FEES
• All deck operators must submit encroachment
permit application
• One-year initial term with annual renewals
• Applicants must submit: plans, application,
maintenance covenant agreement,
insurance and fee
• Additional fees and permits (e.g., electrical
permit) may be required
• Optional amplified music permit and fee
953

PROPOSED FEE SCHEDULE
Outdoor Dining Encroachment Permit
Administration
Fee Amounts
Application for standard off-street
encroachment
$1618.48
Application for simple off-street
encroachment
$492.20
Application for on-street encroachment $1895.24
Annual Renewal $397.70
Minor Alterations $313.02
954

NEXT STEPS
• Existing decks required to submit plans within 90
days
• Upon approval, will have 90 days to construct
• Staff will develop and submit Coastal
Development Permit. Parking mitigation is key
to permit approval.
• Staff will continue to monitor and assess
program
955
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 24-0092
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 27, 2024

ECONOMIC DEVELOPMENT STRATEGY PROGRESS REPORT
(Community Development Director Carrie Tai)
Recommended Action:

Staff recommends City Council:

1. Receive a staff presentation; and

2. Receive and file Economic Development Strategy Progress Report #3.

Executive Summary:

The Economic Development Strategy was approved in 2022, with one of the action items being progress reports presented to the City Council biannually in January and July of each year. This is the third progress report on the Economic Development Strategy. The last update was presented to City Council at its July 25, 2023 meeting.

Background:

The Economic Development Strategy (Attachment 1) is the result of two years of collective efforts by the Economic Development Committee and the Stakeholders Advisory Working Group to identify Economic Development objectives and actions. For two years, the Economic Development Committee met monthly, and the 20-person Stakeholders Advisory Working Group met bimonthly, to explore and discuss Hermosa Beach business-related topics. An Economic and Market Study was also prepared to inform development of the Economic Development Strategy. At its July 12, 2022 meeting, City Council adopted the Economic Development Strategy.

The resulting Economic Development Strategy includes thirty strategic actions. These include proactive steps to enhance Hermosa Beach through beautification, strengthen the local economy, and provide an environment for the City’s business partners to succeed as they serve the community. The City Council approval included ten priorities for implementation in the first year ending June 30, 2023.

The Economic Development Strategy is a long-term plan, with strategic actions divided into short-term (1st year), mid-term (2-3 years) or long-term (3+ years) implementation. The actions are divided into five categories: Citywide Beautification; Downtown; Municipal Code Amendments; Business Outreach; and City Economic Development work program. The Economic Development Strategy is the work plan for City of Hermosa Beach Page 1 of 12 Printed on 3/19/2024 powered by Legistar™956
Staff Report
REPORT 24-0092
implementation, beginning with the identified action priorities.

The Economic Development Strategy identified a multi-disciplinary complement of City Departments (City Manager’s Office, Community Development, Public Works, Community Resources, Police Department, and Human Resources), the Chamber of Commerce, and professional subject matter experts.

Implementation work was anticipated to be completed by staff, the Hermosa Beach Chamber of Commerce, and occasionally with contracted subject matter expert assistance.

The Economic Development Strategy also indicates that the prioritization and scope of the Strategic Actions do not consider staff capacity or competing workload demands. Staff ability to implement the strategy items is determined by available capacity. Staff capacity for the development of the Economic Development Strategy was, in part, made possible by the extended allowable hours of the Interim Senior Planner during the COVID-19 pandemic response. Once the COVID-19 emergency ended, the allowable hours returned to only accommodate daily workload such as long-range planning projects, customer service, and a limited business liaison role.

The Economic Development Strategy includes an action item to report to the City Council twice annually to monitor progress, prioritize actions, and consider new opportunities. The following biannual report ensures City Council and the community are updated on Economic Development Strategy implementation and that priorities are identified each year.

At its July 25, 2023 meeting, City Council received Progress Report #2. The staff report indicated that while the Economic Development Strategy actions were to be divided into three years, all action items were listed as being completed within Years 1 and 2, with none in Year 3. Staff also indicated that the unfinished items from Year 1, plus partially-completed items from Year 2, exceed the forecasted staff workload capacity. City Council received and filed the progress report.

Past City Council, Commission, and Economic Development Committee Actions Meeting Date Description
March 4, 2020 A joint meeting of the City Council and Planning Commission was held to discuss a vision for the Downtown District, among other topics. At that meeting, it was suggested that a subcommittee be formed, comprised of two City Councilmembers and two Planning Commissioners to focus on Economic Development.

June 1, 2020 Economic Development Committee held its first monthly meeting to begin work on short-term economic recovery goals and long -term Economic Development goals to benefit the Downtown and citywide business districts. At the first meeting, the Economic Development Commi ttee determined that a Stakeholders Advisory Group should be formed to represent a variety of businesses and commercial districts.

September 28, 2021 City Council received a One-Year Progress Report on the Economic Development Committee and Economic Development Strategy initial actions approved.

May 2, 2022 Economic Development Committee held its final meeting, during which it approved the Economic Development Strategy.

July 12, 2022 City Council adopted Economic Development Strategy and First Year Implementation Priorities
City of Hermosa Beach Page 2 of 12 Printed on 3/19/2024 powered by Legistar™957
Staff Report
REPORT 24-0092
Past City Council, Commission, and Economic Development Committee Actions Meeting Date Description
March 4, 2020 A joint meeting of the City Council and Planning Commission was held to discuss a vision for the Downtown District, among other topics. At that meeting, it was suggested that a subcommittee be formed, comprised of two City Councilmembers and two Planning Commissioners to focus on Economic Development.

June 1, 2020 Economic Development Committee held its first monthly meeting to begin work on short-term economic recovery goals and long -term Economic Development goals to benefit the Downtown and citywide business districts. At the first meeting, the Economic Development Commi ttee determined that a Stakeholders Advisory Group should be formed to represent a variety of businesses and commercial districts.

September 28, 2021 City Council received a One-Year Progress Report on the Economic Development Committee and Economic Development Strategy initial actions approved.

May 2, 2022 Economic Development Committee held its final meeting, during which it approved the Economic Development Strategy.

July 12, 2022 City Council adopted Economic Development Strategy and First Year Implementation Priorities.

January 24, 2023 City Council received first progress report.

July 25, 2023 City Council received second progress report.

Analysis:

Since the second progress report in July 2023, staff evaluated all strategic action items of the Economic Development Strategy Report, as well as ongoing initiatives not identified in the Economic Development Strategy initially adopted in 2022. Staff observed numerous initiatives that further the City’s efforts in supporting the business community in improving the environment in which to do business.

This third progress report incorporates all action items from the past one and a half years and presents the entire Economic Development Strategy in a comprehensive way. This allows the community, City Council, and staff to focus on this effort in totality. The action items are presented in the following table in numerical order as identified in the Economic Development Strategy. The letter symbol (S, M, L) indicates whether the action item was to be initiated in the short-term (Year 1), mid-term (Year 2-3), or long-term (Year 3+). The table identifies prior actions and provides current updates. The table also identifies initiatives that do not currently have staff and funding resources.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update

1.Wayfinding Signs
Prior Action(s): In May of 2022, the City issued an encroachment permit to the HB Chamber of Commerce and assisted in the installation and City of Hermosa Beach Page 3 of 12 Printed on 3/19/2024 powered by Legistar™958
Staff Report
REPORT 24-0092
Implementation Priorities and Status
Strategic Action February 2024 Progress Update

1. (S)
Wayfinding Signs
(CMO/PW)
Prior Action(s): In May of 2022, the City issued an encroachment permit to the HB Chamber of Commerce and assisted in the installation and replacement of 40 removable floor decals on City sidewalks in the downtown area. The decals contain a QR code directing the public to the Truly Hermosa website which provides information regarding restaurants, shops, hotels, events, directional information, parking and encourages alternate transportation options.

Current Update: As part of the Capital Improvement Program (CIP) 111, staff is working with a designer on completing an inventory of existing wayfinding and gateway signage and the preliminary design of new signage and recommended locations. As part of this preliminary e ffort, the designer will identify future cost estimates for final design, fabrication, and installation, which will require additional funding as part of a future CIP.

The City is scheduling replacement and installation of both City "Walk Your Bike" sticker decals and assisting the Chamber of Commerce by replacing and installing Chamber-paid "Shop Eat Truly Hermosa" sticker decals on the sidewalk in the downtown areas.

2. (L)
Façade Improvement
Program for commercial
districts
(CD)
There is currently no funding or staffing resources to initiate this item.

3. (S)
Beautification Program,
including Gateway
Entries and Corridors
(CMO/CD/PW)
Prior Action(s): At its March 28, 2023 meeting, City Council approved an agreement to allow the Hermosa Beach Chamber of Commerce to manage an annual street pole banner program. The seasonal banners provide the desired street view enhancements, create a se nse of pride and City image on Pier Avenue and Hermosa Avenue corridors. Select banners feature and publicize community events to encourage tourism.

Current Update: Building permit review is currently in process for a planned City gateway sign at the Skechers project at 30 th Street and Pacific Coast Highway (PCH) to identify the entrance to Hermosa Beach from the north on PCH. The sign will feature the City’s new logo and adhere to the branding and style guidelines. The sign design is expected to inform the sign program along the City’s major corridors from the south and east.

Public Works worked on a median project on Hermosa Avenue coming in from the South.

To increase the presence of the City during the holidays, City’s holiday décor was augmented with the enhancement of the streetlight pole decorations, expanded decorations at City Hall, and the installation of permanent ring lights on the palm trees locate d in the medians of Pier and Hermosa Avenues.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update
4Beautification AwardsPrior Actions: At the State of the City Address event held October 272022 City of Hermosa Beach Page 4 of 12 Printed on 3/19/2024 powered by Legistar™959
Staff Report
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Implementation Priorities and Status
Strategic Action February 2024 Progress Update

4. (S)
Beautification Awards
(CMO)
Prior Actions: At the State of the City Address event held October 27, 2022, the Mayor recognized the Sea Sprite for renovation and upgrades.

Chamber of Commerce has indicated a desire to incorporate Beautification Awards possibly at State of the City or Best of Hermosa.

5. (L)
Consider Arts in Public
Places Program There is currently no funding or staffing resources to initiate this item.

6. (L)
Placemaking Community
Forum There is currently no funding or staffing resources to initiate this item.

7. (L)
Placemaking Project
Design There is currently no funding or staffing resources to initiate this item.

8. (S)
Include Beautificationrelated projects in the City
budget and CIP to add
value and for residents
and visitors to enjoy.
(PW)
Prior Action(s): The City and South Bay Parkland Conservancy worked diligently to support the Leadership Hermosa class project “Hermosa Mariposa,” a native butterfly habitat restoration project on the Greenbelt. This project improves the appearance of the public space to enhance community quality of life and City image and attract visitors.

Current Update: In partnership with the City, the South Bay Parkland Conservancy has applied for funding from the Coastal Conservancy to enhance and expand Hermosa Mariposa.

For Fiscal Year 2023-2024, the City Council has directed a “back to basics” approach with regard to Capital Improvement Programs, with the focus on critical infrastructure, deferred maintenance, and community serving facilities such as the Clark Building and park space.

CIP 109 was created to enhance the aesthetics of utility boxes throughout the City. PW staff is actively working in coordination with a local artist collaborative to advance the installation of painted or wrapped art on utility boxes.

9. (S)
Work with Business
Community to Explore
Formation of a Downtown
Business Improvement
District (BID).
(Chamber)
On May 3, 2023, the City and Chamber of Commerce coordinated a BID meeting, assisted by Civitas, a firm specializing in assisting in BID formation.

The Chamber of Commerce is coordinating business and property -owner interest following the informational meeting.

Due to capacity and results of the business survey, the Chamber has indicated that it is not currently pursuing initiating a BID on behalf of downtown businesses. However, businesses could still seek to form if they wish. The Chamber is still pursuing a Tourism Investment District. No steps have been planned yet.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update

10. (M)
Focused Update of
Downtown Revitalization
Strategyincluding
The City adopted the Downtown Core Revitalization Strategy on February 24, 2015. This Strategy, prepared by the ROMA Design Group, details the conditions of the Downtown Core while making suggestions for improvement City of Hermosa Beach Page 5 of 12 Printed on 3/19/2024 powered by Legistar™960
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Implementation Priorities and Status
Strategic Action February 2024 Progress Update

10. (M)
Focused Update of
Downtown Revitalization
Strategy, including
Preservation of Downtown
Retail and Restaurants
and Other Active Uses on
1st Floor.
(CMO/CD)
The City adopted the Downtown Core Revitalization Strategy on February 24, 2015. This Strategy, prepared by the ROMA Design Group, details the conditions of the Downtown Core while making suggestions for improvement.

This document is relevant but must be updated to reflect changes in the downtown over the past eight years, namely the decrease in retail and increased desire for housing. There are currently no staffing resources or funding to initiate this update.

As part of the City’s Housing Element, the City incorporated zoning changes to allow for inclusion of residential development above commercial uses in commercial districts, including Upper Pier Avenue. The City also altered zoning regulations to allow for three stories where two are currently allowed (but maintaining the same height limit) and updated parking standards to incentivize the development of smaller units by requiring fewer parking spaces.

As part of the Zoning Code Update, staff is developing strategies to promote pedestrian-oriented uses on the ground floor by requiring added review of nonpedestrian uses.

11. (S)
Develop Identity/Vision for
the Downtown (Objective:

Incorporate City brand
with marketing and future
improvements).
(CMO/PW)
Prior Action(s): In March 2023, the City formalized 37 street pole banner locations on Pier Avenue and Hermosa Avenue through an encroachment agreement with the Chamber of Commerce. The City also approved a licensing agreement to authorize the Chamber of Commerce to sell items bearing the City logo to promote the Hermosa Beach brand and to generate revenue to support tourism activities.

12. (S)
Comprehensive
Downtown Lighting
Evaluation with Complete
Photometric Study,
Design and Installation
(PW)
The estimated project schedule for CIP 621 was amended to begin Requests for Proposal (RFP) development in May of 2024 through the adoption of the FY23–24 budget. The advancement of this project remains contingent on staff availability and is tentatively anticipated to begin in Summer 2024.The current funding supports the preliminary design phase and additional funding will be necessary for final design and installation as part of a future CIP once the scope of work and costs are more clearly defined.

The City replaced the string light” on ’9 palm trees along Pier Avenue and Hermosa Avenue with new ring lights for enhanced aesthetic, to provide a more permanent installation, and ease in maintenance. These more permanent fixtures were installed in December 2023 and will be used all year long and can change colors to fit all seasonal occasions.

13. (L)
Introduce and Facilitate
Downtown Experiences
(CMO / CR)
In 2023, the City waived a total of $241,967 amounting to $10,155 in direct costs and $231,812 in indirect costs.Fee waivers are approved through numerous avenues within the Special Events Permit Program:
 Fee Waiver Grant Program$8,079
 Long-Term Agreements (allows for the ability to negotiate fees) $78,307  Chamber of Commerce Events $139,140
 City as Supporting Partner for the Kevin Sousa Celebration of Life (events purely for community benefit) $16,441
Implementation Priorities and Status
Strategic Action February 2024 Progress Update

14. (S)
Permanently Allow
Outdoor Dining Areas and
Prior Action(s): The City Council approved the lane configuration on April 25, 2023. The City Council adopted Municipal Code changes and associated fees City of Hermosa Beach Page 6 of 12 Printed on 3/19/2024 powered by Legistar™961
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Strategic Action February 2024 Progress Update

14. (S)
Permanently Allow
Outdoor Dining Areas and
Lane Reconfigurations.
(PW/CMO)
Prior Action(s): The City Council approved the lane configuration on April 25, 2023. The City Council adopted Municipal Code changes and associated fees for temporary outdoor dining areas to expand outdoor dining on public property and public rights-of-ways. Specifications for outdoor dining areas in the on-street areas of the public rights-of-ways were discussed in Summer 2023;
Current Update: The on-street outdoor dining guidelines are scheduled for approval by City Council in February 2024.

15. (S)
Long-term Allowance of
Outdoor Music in
Business Locations
(CD)
The Community Development Department will evaluate and develop a program for this in conjunction with the Outdoor Dining Area program. This item remains pending. Businesses have temporarily been operating under the temporary COVID protocols, which were extended by the City Council.

Staff assessed existing City regulations during Winter 2023 and observed that the City’s Noise Ordinance includes stringent regulations on music outdoors.

Additional work and surveys are planned for Spring 2024 to identify updates needed to the Noise Ordinance. Staff has identified th e possibility of businesses securing Sound Amplification permits to play music outdoor at business locations in a temporary manner.

16. (M)
Program to Allow Outdoor
Music in Public Spaces
(CMO/CD)
There is currently no funding or staffing resources to initiate this item.

17. (M)
Regular Communication
with Key Property Owners
to Encourage
Reinvestment and Provide
Support as Needed.
(CMO/CD)
In addition to responding to daily inquiries, the Community Development Department has held at least 10 meetings with existing or prospective property owners and representatives to discuss potential uses, improvements, new tenants, or possible conversion. During these meetings, staff describes a “road map” to desired direction.

18. (M)
Develop
Business Visitation
Program.
(CMO/Chamber/PD/CD)
Hermosa Beach Police Department hosts the Coffee with a Cop Program at specific businesses to increase visibility to the business and to foster community relationships.

Chamber of Commerce launched “Walk N Talks”, a program to connect City elected and appointed officials with a variety of businesses.

19. (M)
Annual Commercial
Property Owner and
Brokers Forum
(CMO / Chamber)
There is currently no funding or staffing resources to initiate this item.

However, staff continues to regularly dialogue with the Chamber of Commerce on opportunities to advance this.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update

20.Shop Local Program
Prior Action(s): A dedicated “Shop Hermosa” page was added to the City’s ebsiteThe page featres fie reasons to shop hermosarecent shop City of Hermosa Beach Page 7 of 12 Printed on 3/19/2024 powered by Legistar™962
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Implementation Priorities and Status
Strategic Action February 2024 Progress Update

20. (S)
Shop Local Program
(CMO / Chamber)
Prior Action(s): A dedicated “Shop Hermosa” page was added to the City’s website. The page features five reasons to shop hermosa, recent shop hermosa initiatives, and marketing tips for local businesses. Staff created the hashtag #ShopHermosa for City and business use and launched a new Summer 2023 shop local social media campaign aimed at the City’s 23,000 followers.

The City has participated and provided funding support for the Truly Hermosa Destination Guides produced bi-annually by the Hermosa Beach Chamber of Commerce. The print and online guide provides resources and information for visitors and residents. Current Update: The Chamber meets regularly with the City’s social media team. In 2023, the City completed a summer shop local and a winter shop local campaigns on social media. The campaigns were promoted on Instagram, Facebook and X. The campaigns centered aro und these key messages:

1. Communicate what makes Truly Hermosa with the businesses that we have in the city.

2. Many business owners and employees are also our neighbors so shopping local means community involvement.

3. Shopping local nurtures our community. Local investment = community engagement
To facilitate the downtown shopping experience, the City Council approved the 4-week 2023 complimentary holiday parking program from the day after Thanksgiving through December 25. The program traditionally includes commercial zone silver-post meters and offers complimentary parking in accordance with existing posted meter time limits. The estimated foregone meter revenue from this program is approximately $143,577.

21. (S)
Provide Hermosa Beach
Business Information to
Event Promoters to
Encourage Use of Local
Vendors and Distribution
to Participants.
(CR / Chamber)
Prior Action(s): Community Resources has added the following language to the Special Events Policy Guide: “Event producers will be required to detail positive economic impacts as a result of the event in the Special Event Application. Event producers should encourage use of local businesses to event staff, participants, and spectators. The Hermosa Beach Chamber of Commerce and Visitor Bureau’s business directory is available at www.trulyhermosa.com. Additionally, event producers should engage with local businesses to explore partnership, and promotional opportunities.” Additionally, the Chamber of Commerce worked with the Community Resources Department to email all event producers to offer the services of the Chamber, which in turn, supports the local businesses.
[COMPLETED]

22. (M)
Retail Attraction
Program for Competitive,
Strengthened Retail
(CMO / Chamber / CD)
There is currently no funding or staffing resources to initiate this item.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update

23. (S)
Partnership with Chamber
of Commerce to Enhance
The City has participated and provided funding support for the Truly Hermosa Destination Guides produced bi-annually by the Hermosa Beach Chamber of CThit d liididd iftif
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Implementation Priorities and Status
Strategic Action February 2024 Progress Update

23. (S)
Partnership with Chamber
of Commerce to Enhance
Visitors Bureau to
Develop And Promote the
Hermosa Beach Brand
and Provide Visitor
Resources
(CMO/Chamber)
The City has participated and provided funding support for the Truly Hermosa Destination Guides produced bi-annually by the Hermosa Beach Chamber of Commerce. The print and online guide provides resources and information for visitors and residents.

The City approved an agreement with the Hermosa Beach Chamber of Commerce to authorize the sale of souvenirs and decorative items bearing the City logo to promote the Hermosa Beach brand and to generate revenue to support tourism activities.

This agreement remains in place.

24. (M)
Periodic Community
Survey to Determine What
Types of Shops or Goods
Are Desired and
Residents to Drive out of
Town to Patronize
(CMO / Chamber)
There is currently no funding or staffing resources to initiate this item.

25. (M)
Explore Music Events and
Activities to Celebrate
Hermosa Beach Music
History and Provide
Musical Experiences for
Community and Visitors.
(CMO / CR / Chamber)
The City FY 2023-2024 budget allocated funds to relaunch the concerts on the beach with the City serving as host and event coordinators. The Hermosa Beach Concert Series will take place on the two concerts on the beach in 2024, south of the Pier, on the two Sundays following Labor Day weekend; September 8, 2024, and September 15, 2024. The title of the event is general, not specific to a location (such as beach concerts, for example) so there are opportunities to consider expanding the concerts, such as to the parks in the off-season.

26. (M)
Development Assistance
Committee/ Development
Review Committee
(CD)
During 2023, the City stabilized the Community Development Department staff by securing a permanent Director, who recruited for and filled the Building Official/Code Enforcement Manager and Planning Manager positions.

The Department is in the process of convening regular development review meetings internally as well as dialoguing with external stakeholders for preliminary meetings so ensure that development projects progress efficiently.

27. (M)
Provide Customer Service
Training to All City Staff to
Build on Culture of
Excellent Customer
Service.
(CMO)
The City migrated to the California Joint Powers Insurance Authority (CJPIA) in 2023, making available training programs that once were costly and a logistical challenge. CJPIA features a robust training curriculum, including customer service training, that will enable the City to offer training to staff while taking advantage of the cost-effectiveness secured by CJPIA.

Implementation Priorities and Status
Strategic Action February 2024 Progress Update
28Continuous improvements
The newly-stabilized staff in the Community Development Department (see City of Hermosa Beach Page 9 of 12 Printed on 3/19/2024 powered by Legistar™964
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Strategic Action February 2024 Progress Update

28. (L)
Continuous improvements
to streamline processes
and reduce approval times
for permit processes.
(CD)
The newly-stabilized staff in the Community Development Department (see #26) has enabled the Department to begin assessing and implementing process improvements to reduce timing associated with permit processes.

Some of these processes include revised application and checklist, review of plan review workflows, and communications protocols.

29. (S)
Continue Staff Member
Assigned as Business
Liaison.
(CMO)
The City designated Doug Krauss as Business Liaison in August 2023. [COMPLETED]

30. Regular City Council
Review
Ongoing
Staff researched potential solutions to structure further Economic Development Strategy implementation.

One potential solution is to secure an outside economic development specialist to serve as the project manager for Economic Development Strategy. This could be a limited-term individual or firm, potentially funded through a cost share between the City and the business community. If City Council were interested in pursuing such a solution, staff could return in the future with options.

As demonstrated in the action items above, the City’s variety of programs support economic development and the business community in a myriad of ways. From supporting events that draw visitors to the City, beach, and downtown to policy changes that assist property owners in more flexible and efficient development, the City continues to implement the action items of the Economic Development Strategy as much as staffing and funding resources allow.

General Plan Consistency:

PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. The Economic Development Strategy supports several PLAN Hermosa goals and policies listed below.

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

Policies:
 6.1 Long-term economic development. Support the development and implementation of longCity of Hermosa Beach Page 10 of 12 Printed on 3/19/2024 powered by Legistar™965
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 6.1 Long-term economic development. Support the development and implementation of longterm economic development strategies that seek to establish and keep new businesses and a strong middle class in Hermosa Beach over the decades to come.  6.2 Regional presence. Encourage economic development strategies that will make Hermosa Beach a driving force and jobs center behind the regional economy of the South Bay region.  6.3 Diversified economy. Encourage economic development strategies that allow the City to move beyond reliance on its two main industries-accommodation and food service and retail tradeand transform itself to a mature mix of economic activity and job opportunities.  6.4 Business support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.
 6.5 Creative economy. Prioritize strategies that will create an economy full of diverse talents, trades and goods for the City. For long-lasting economic success, a range of services, arts, entertainment and retail should be supported on all scales of the City’s economy.  6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses.
 6.7 Retail base. Encourage economic development reflective of the character of Hermosa Beach with small and medium scale retail development within Hermosa Beach in order to create a stronger tax base and increase the City’s tax revenue.

Land Use Element
Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents.

Policies:
 1.1 Diverse and distributed land use patterns. Strive to maintain the fundamental pattern of existing land uses, preserving residential neighborhoods, while providing for enhancement of corridors and districts in order to improve community activity and identity.  1.4 Diverse commercial areas. Promote the development of diversified and unique commercial districts with locally owned businesses and job- or revenue-generating uses.  1.5 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of residents as well as visitors.
 1.8 Respond to unique characteristics. Enhance the unique character and identity of the City’s neighborhoods, districts and corridors through land use and design decisions. Allow policies and programs to be focused on each unique character area of the City.

Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach.

Policies
 3.1 Unique districts. Encourage the development of local and citywide districts and centers that address different community needs and market sectors and complement surrounding City of Hermosa Beach Page 11 of 12 Printed on 3/19/2024 powered by Legistar™966
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neighborhoods.
 3.3 Diverse retail and office centers. Provide incentives to transform existing single-use commercial properties that are accessible into retail destinations by adding a diversity of uses, providing new pedestrian connections to adjacent residential areas, reducing the visual prominence of parking lots, making the centers more pedestrian-friendly and enhancing the definitions and character of street frontage and associated streetscapes.  3.4 Emerging employment sectors. Strive to create districts that support increased employment activity, particularly for growing or emerging economic sectors.  3.5 Compact office formats. New employment uses should be designed in a compact format with minimal front setbacks from the street, typical lease spans of 40 feet or less, and where feasible, combined with other commercial uses.

Fiscal Impact:

There is no fiscal impact associated with recommended action to receive and file the Economic Development Strategy progress report.

Attachments:

1. Economic Development Strategy

2. Economic and Market Study Update by Economic and Planning Systems, Inc.

3. Downtown Core Revitalization Strategy (2015)

4. Link to March 4, 2020 City Council Staff Report

5. Link to April 21, 2020 Planning Commission Staff Report

6. Link to April 28, 2020 City Council Staff Report

7. Link to June 1, 2020 Economic Development Subcommittee Staff Report

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

9. Link to May 2, 2022 Economic Development Subcommittee Staff Report

10. Link to July 12, 2022 City Council Staff Report

11. Link to January 24, 2023 City Council Staff Report

12. Link to the July 25, 2023 City Council Staff Report Respectfully Submitted by: Carrie Tai, Community Development Director Concur: Paul LeBaron, Police Chief
Concur: Joe SanClemente, Public Works Director
Concur: Lisa Nichols, Community Resources Manager
Concur: Doug Krauss, Environmental Programs Manager
Concur: Angela Crespi, Deputy City Manager
Noted for Fiscal Impact: Viki Copeland, Finance Director Approved: Suja Lowenthal, City Manager
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Hermosa Beach Economic Development Strategy
Introduction
Economic Development is different in each city according to its unique needs and opportunities. This Hermosa Beach Economic Development Strategy identifies a path forward as we emerge from the pandemic and post-pandemic recovery poised to facilitate business success, strengthen the local economy and improve quality of life for residents.

The Economic Development Committee directed development of a long-term Economic Development Strategy, as stated in PLAN Hermosa under Governance Goal 6: A broad-based and long-term economic development strategy for Hermosa Beach that supports existing businesses while attracting new business and tourism.

This plan will be implemented by City departments in collaboration with the Hermosa Beach Chamber of Commerce, input from the community and, in some cases, with the help of professional consultants.

Regular review with the City Council will monitor progress and provide a system to update priorities and identify new Economic Development opportunities.

Some business-friendly initiatives put in place to serve the business community are included under the category of “City Economic Development Work Program” to ensure they are continued.

Preparation of the Economic Development Strategy
The Economic Development Strategy is the result of more than a year of work with the Economic Development Committee and Stakeholders Advisory Working Group to identify Economic Development Strategy objectives and actions, supported by the City Manager’s Office and Community Development Department staff. Monthly Economic Development Committee meetings and twicemonthly Stakeholders Advisory Working Group explored and discussed relevant Hermosa Beach topics, including Gateways and Corridors, Downtown issues, Tourism, Special Events, Arts and Culture, Music and Entertainment, and Placemaking.

The Economic Development Strategy includes strategic actions; steps the City can take to enhance Hermosa Beach and strengthen the local economy through beautification, code changes, and other pro-active steps to build relationships through listening to property owners and businesses to encourage investment, business expansion and success.

The strategic actions are divided into five categories: Citywide Beautification, Downtown, Municipal Code Amendments, Business Outreach, and City Economic Development Work Program. 969
Economic and Demographic Conditions
Hermosa Beach Demographics
2010 2020
970
Hermosa Beach Employment
Hermosa Beach has more than 1,000 businesses in commercial spaces and home-based, large and small. Hermosa Beach has 12,290 workers living within its borders who work across 13 major industrial sectors. The table below shows the types of jobs they hold. The most prevalent occupational category in Hermosa Beach is Management, in which 7,580 (61.7% of total) employees work. The second-most prevalent type of work is in Sales, which employs 2,966 (24.1% of total) in Hermosa Beach.

Employment by Occupation – Hermosa Beach
Hermosa Beach as Bedroom Community
Hermosa Beach is considered a “bedroom community,” since more residents travel outside the city for work than individuals who travel to Hermosa Beach to work, with a daily net outflow of 2,475, as shown in the below table. This contributes to a smaller daytime population, especially in comparison to the adjacent Manhattan Beach, which has a daily net gain of 4,377.

However, work-from-home trends may reduce employee outflow and allow more of the community to support local businesses during the day, including for in-person meetings for coffee or lunch.

Additionally, when the Skechers North American headquarters is completed in 2023 – located at the expanded campus in Manhattan Beach and Hermosa Beach – an addition 700 employees will be in the area to support businesses with lunch and shopping during the day. These encouraging factors promise to add business and foot traffic during the daytime.
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Hermosa Beach Daytime Population
Hermosa Beach Tourism
Visitors support local businesses and help to attract the types of businesses that residents also enjoy.

Overnight visitors pay a 14% Transient Occupancy Tax (TOT) to support city services such as the pier, beaches, parks, police and fire services, and reduce cost impacts to residents.

During the most recent City Council budget review held March 22, 2022, it is expected that 2021-2022 TOT revenues will recover to pre-pandemic levels to approximately $3.5 million.

The Hermosa Beach Chamber of Commerce and Visitors Bureau has plans to focus on attracting new overnight visitors to further support local businesses and increase awareness of Hermosa Beach as an overnight visitor destination.

Hermosa Beach Transient Occupancy Tax (TOT)
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Two small hotels are under construction at 70 10th Street with 6 rooms and 66 11th Street with 9 rooms, which will expand visitor hotel choice and add to the Hermosa Beach hotel room inventory, currently from 480 to 495 rooms.

Hermosa Beach Hotels
Name Year Built Category Rooms
Beach House 1998 Luxury 96
Grandview Inn 1973 Economy 17
H2O Hermosa 2020 Mid-Range 30
Hampton Inn 2002 Economy 70
Holiday Inn Express 2001 Economy 80
Hotel Hermosa 1990 Mid-Range 80
Quality Inn 1986 Economy 39
Sea Sprite Ocean Front Hotel 1957 Mid-Range 39
480
Economic Development Strategic Actions
Strategic Actions have been sorted into five broad categories to ensure regular progress in each area.

Citywide Beautification
1 Wayfinding Signs
Objective: Inform and direct visitors from PCH, Aviation and Artesia to beach, pier, parking, business districts and add to sense of place.

Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Implement wayfinding sign program along corridors and in Downtown with sidewalk details, QR codes or other pedestrian-level signs, including City branding, Responsible Staff: Public Works, City Manager’s Office, Chamber of Commerce 2 Façade Improvement Program for commercial districts
Objective: Private property investment to improve appearance of older buildings in need of refreshed exteriors.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
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Performance Measures: Proactive outreach to property owners, Identify funding source (CDBG, Grants), Establish program with architect assistance. Program to be catalyst for improvements, encouraging new investment reducing vacancy rates, increasing property values and providing a more welcoming atmosphere.

Responsible Staff: Community Development
3 Beautification Program, including gateway entries and corridors. Seek funding sources for improvements.

Objective: Improve community quality of life, sense of pride and City image, improve appearance of all areas of Hermosa Beach.

Difficulty: Medium
Priority Timeline: Within 2-3 Years
Performance Measures: Seek street view enhancements at every opportunity, Identify and incorporate beautification projects in annual CIP budget. Seek quality private developments.

Beautification is an investment in the City to add sales tax, increase hotel occupancy rates and TOT collections, reduce vacancy rates and increase property values.

Responsible Staff: Public Works, Community Development, City Manager’s Office 4 Beautification Awards
Objective: Celebrate and encourage improvements.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Annual recognition of new or improved private and public spaces.

Responsible Staff: Mayor’s Award or Chamber of Commerce 5 Consider Arts in Public Places Program
Objective: Arts in Public Places ordinance to add public art as part of private development to increase beautification with new projects.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Arts in Public Places ordinance to add public art as part of private development to increase beautification with new projects.

Responsible Staff: Community Development, Community Resources, Chamber of Commerce. 974
6 Placemaking Community Forum, including City Council, Planning Commission and Parks, Recreation and Community Resources Advisory Commission.

Objective: Consider Placemaking principles as decision making tool for staff and commissions.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Placemaking includes activating underutilized spaces and gathering places, improving area attractiveness for all ages and abilities, and including community in decision making. BIDs can also be considered in other areas of the City.

Responsible Staff: Community Development, City Manager’s Office, Public Works, Community Resources
7 Placemaking Project Design. The City to include community through public engagement.

Objective: Community involvement in design ensures area will be enjoyed, promotes local pride and quality of life.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Training and citywide approach to seek opportunities to include community input and neighborhood enhancement opportunities.

Responsible Staff: Community Development, City Manager’s Office, Public Works, Community Resources
8 Include Beautification-related projects in the City budget and CIP to add value and for residents and visitors to enjoy. Investment in the public realm improves community quality of life and welcomes visitors.

Objective: Improve public areas appearance to enhance community quality of life and City image
and attract visitors.

Difficulty: Medium or Difficult depending on projects
Priority Timeline: Within 2-3 Years or More than 3 years depending on projects Performance Measures: Results in increased commercial and residential property values and community pride, Increased hotel occupancies, City transient occupancy tax and sales tax collection
Responsible Staff: Public Works, Finance
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Downtown
9 Work with Business Community to Explore Formation of a Business Improvement District (BID).

Objective: Facilitate BID if desired by Downtown property owners and/or businesses. A BID can fund activities beyond City services identified by property owners and/or businesses.

Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: Initial information meeting, determine which type of BID to establish, form advisory committee to identify activities needed and associated costs to determine assessments.

Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce 10 Focused Update of Downtown Revitalization Strategy, including Preservation of Downtown Retail and Restaurants and other active uses on 1st floor.

Objective: Review document to determine what needs to be completed or added. Economic market study completed in 2021 can inform updated Downtown Revitalization Strategy.

Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: An updated strategy that aligns with emerging trends that sets the stage for a sustainable and vibrant economic future. Add incentives for active uses on 1st floor in Downtown with new Zoning Code. Will need consultant assistance after RFP and selection.

Responsible Staff: Community Development, Public Works, City Manager’s Office, Consultant 11 Develop Identity/Vision for the Downtown
Objective: Incorporate City brand with marketing and future improvements.

Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: Consistent with PLAN Hermosa and Downtown Revitalization Strategy.

May be considered concurrent with Update of Downtown Revitalization Strategy. Would require RFP and consultant contract with public outreach.

Responsible Staff: Community Development, Public Works, City Manager’s Office, Consultant, Chamber of Commerce
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12 Comprehensive Downtown lighting evaluation with complete photometric study, design and installation. This requires a new CIP request for funding, community input for desired lighting, and public review.

Objective: Lighting plan for Downtown with overall vision to create safe and welcoming atmosphere.

Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Include in CIP budget, RFP, include public input process in contract.

This could be an example for other areas of the City in future.

Responsible Staff: Public Works, Consultant
13 Introduce and Facilitate Downtown Experiences (activate public spaces, add interest for residents and visitors)
Objective: Enhance the special sense of place Downtown to add vibrancy and attract new business interest and investment
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Seek opportunities for art, music and special experiences in identified Downtown locations. Added foot traffic to add customers and increase sales tax, increase hotel occupancy rates and TOT collections, reduce vacancy rates and increase property values.

Responsible Staff: Community Development, Public Works, City Manager’s Office, Community Resources, Chamber of Commerce
Municipal Code Amendments
14 Permanently Allow Outdoor Dining Areas and Lane Reconfigurations Objective: To add vibrancy of public and private outdoor spaces, enhance sense of place and continue to offer outdoor options safely and comfortably. To move traffic at safer speeds and encourage all mobility options.

Difficulty: Medium
Priority Timeline: 1st Year
Performance Measures: City Council ordinance to change codes, CEQA analysis, CA Coastal Commission approval. Require encroachment rental fees and standards, including appearance, and to allow commercial use if not in use by business.
977
Responsible Staff: Public Works, Community Development, City Manager’s Office 15 Long Term Allowance of Outdoor Music in Business Locations Objective: Allow temporary outdoor music to become permanent to attract customers, add vitality and provide unique Hermosa Beach atmosphere.

Difficulty: 2-Medium
Priority Timeline: 1st Year
Performance Measures: Amend Title 17 (Zoning). Include with permanently allowed Outdoor Dining.

Responsible Staff: Community Development, Public Works
16 Program to Allow Outdoor Music in Public Spaces
Objective: Add vibrancy and sense of place to enhance Downtown Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Develop program with designated spaces and hours for scheduled musicians. Municipal code amendments (Title 12 Streets, Sidewalks and Public Places).

Responsible Staff: Community Resources, Public Works, Community Development, Police Department, Chamber of Commerce
Business Outreach
17 Regular Communication with Key Property Owners to Encourage Reinvestment and Provide Support as Needed
Objective: Meet with property owners of prime commercial sites to discuss status and opportunities.

Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: 4 meetings per year. Work with property owners to overcome obstacles to property improvements and investment.

Responsible Staff: Community Development, City Manager’s Office, City Council Representative, Chamber of Commerce
18 Develop Business Visitation Program
Objective: Build relationships with businesses, understand and better meet needs. 978
Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Schedule regular visits to a variety of businesses such as large employers, sales tax generators, high-visibility businesses. LAEDC can supplement City efforts with business check-in calls.6-10 visits per year
Responsible Staff: Community Development, City Manager’s Office, City Council Representative, Chamber of Commerce
19 Annual Commercial Property Owner and Brokers Forum
Objective: Create opportunity to communicate with property owners and brokers to share project updates, City updates and real estate trends.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Recognize roles of property owners, brokers and City to strengthen communications and relationships through annual meeting.

Responsible Staff: Community Development, City Manager’s Office, City Council, Chamber of Commerce
City Economic Development Work Program
20 Shop Local Program
Objective: Encourage residents to support local businesses year-round to retain and grow businesses and strengthen local economy.

Difficulty: Easy
Priority Timeline: 1st Year
Performance Measures: Work with Chamber to promote local businesses through social media and other communications at holiday season, ‘Small Business Saturday” and at every opportunity year-round.

Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce 21 Provide Hermosa Beach business information to event promoters to encourage use of local vendors and distribution to participants.

Objective: Gain additional business support from day visitors attending events.

Difficulty: Easy
979
Priority Timeline: 1st Year
Performance Measures: Develop virtual business map with services provided and hours of operation to event promoters to encourage year-round patronage of local businesses.

Responsible Staff: Community Resources, Community Development, GIS, Chamber of Commerce
22 Retail Attraction Program for Competitive, Strengthened Retail Objective: Help recruit new businesses to reduce vacancies, increase foot traffic and strengthen local economy.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Identify vacancies, communicate with property owners, help recruit businesses to reduce vacancies, increase property values and maintain and increase sales tax revenue.

Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce 23 Partnership with Chamber of Commerce to enhance Visitors Bureau to develop and promote the Hermosa Beach brand and provide visitor resources.

Objective: Promote Hermosa Beach as an overnight destination.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Increase overnight visitors to support businesses year-round, increase hotel occupancy and City transient occupancy taxes. Visitors support local businesses that residents also enjoy and strengthen the local economy.

Responsible Staff: City Manager’s Office, Chamber of Commerce 24 Periodic Community Survey to Determine What Types of Shops or Goods are Desired and Residents Drive Out of Town to Patronize
Objective: Survey information to identify gaps in services or goods provided for business attraction. Survey information is a helpful tool in business recruitment since community seeks certain types of business and shows market demand.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
980
Performance Measures: Biennial survey to inform existing businesses of market needs and to help attract new businesses to reduce vacancies.

Responsible Staff: Community Development, City Manager’s Office, Chamber of Commerce 25 Explore Music Events and Activities to Celebrate Hermosa Beach Music History and Provide Musical Experiences for Community and Visitors
Objective: Celebrate unique local musical heritage for community pride and to distinguish Hermosa Beach to visitors.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Incorporate musical history into events and create new events. Events in non-summer season could attract visitors in the non-peak summer season and increase sales tax, increase hotel occupancy rates and TOT collections and strengthen local economy and Hermosa Beach brand.

Responsible Staff: Community Resources, Historical Society and Museum, Chamber of Commerce
26 Development Assistance Committee/Development Review Committee Objective: Provide early feedback and information to developers.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Formalize and promote pre-development meeting process. Early information establishes relationships and reduces development processing time.

Responsible Staff: Community Development, Public Works, Police, LA Fire as needed 27 Provide customer service training to all City staff to build a culture of excellent customer service.

Objective: Provide highest quality service to residents and businesses.

Difficulty: Easy
Priority Timeline: Within 2-3 Years
Performance Measures: Provide comprehensive customer service training with periodic updates. Include customer service consideration for job candidates. Build on shared City culture of excellent customer service by all employees.

Responsible Staff: City Manager’s Office, Human Resources 981
28 Continuous improvements to streamline processes and reduce approval times for permit processes.

Objective: Provide certainty and reduce approval times through efficiencies.

Difficulty: Easy
Priority Timeline: In Process
Performance Measures: Seek continuous staff efficiencies, Periodic Process Improvements Workshops, 1-2 per year
Responsible Staff: Community Development, Public Works, City Manager’s Office 29 Continue staff member assigned as Business Liaison
Objective: Point of contact to assist new and expanding businesses.

Difficulty: Easy
Priority Timeline: In Process
Performance Measures: Timely response to inquiries, referrals, maintain email business@ hermosabeach.gov
Responsible Staff: Community Development
30 Regular City Council Review
Objective: Continue citywide Economic Development program.

Difficulty: Easy
Priority Timeline: Continuous
Performance Measures: City Council review with identification of priorities and workplan in January and July each year to ensure progress on Economic Development Strategy Responsible Staff: Community Development, City Manager’s Office Economic Development Strategy Implementation
Implementation
The matrix below shows the Economic Development actions and ease to implement in five categories:

Citywide Beautification, Downtown, Municipal Code Amendments, Business Outreach and City Economic Development Work Program. These are rated at 1-Easy, 2-Medium and 3-Difficult. These ratings are based on factors such as budget costs, time required to complete, and level of complication including if the City will need to work with consultants or other agencies such as Coastal Commission 982
and CalTrans. This does not consider staff capacity; for example, all of the easy-rated actions could not be included in the staff work plan and completed at the same time.

Priority/Timeline
Actions’ priority and work plan determine which actions should be completed first. These are rated AWithin 1 Year, B-Within 2-3 Years, C-More than 3Years. An example of an action that is a priority but not rated as easy to implement is the “Permanently Allow Outdoor Dining” since the action requires ordinances to amend the municipal code, environmental analysis, and Coastal Commission. It is not easy to implement but has been identified as a priority. This is a working document and priorities may change as needed with periodic review.

Staff Assigned
The matrix below identifies who will be implementing the actions, including: CMO-City Manager’s Office, CD-Community Development, PW- Public Works, CR-Community Resources, PD-Police Department, and HR-Human Resources. The Chamber of Commerce and professional consultants are listed here to also work on strategic actions.

Continue Programs in Place
The Economic Development Strategy does not address or recommend changes to sustainability actions in place, including the successful Green Business Program and actions recognized as Blue City activities to continue protecting healthy waterways and oceans.

Regular City Council Review
For an Economic Development program to be successful, it needs to be a citywide priority and include multiple departments. A regular review of the Economic Development Strategy and prioritization of the work plan early in the year and mid-year ensures that the plan will continue, and Economic Development will be maintained as a City priority as intended in PLAN Hermosa. 983

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS

CITYWIDE

BEAUTIFICATION
1 Wayfinding Signs Inform and direct
visitors from PCH,
Aviation and Artesia to
beach, pier, parking,
business districts and
add to sense of place.

PW,
CMO,
Chamber
1 A
Timing
will need
to include
public
input
Implement wayfinding
sign program along
corridors and in
Downtown with
sidewalk details, QR
codes or other
pedestrian-level signs,
including City branding,
Include in CIP budget.

This may be two
different projects.
2 Beautification Program,
including gateway entries
and corridors. Seek
funding sources for
improvements.

Improve community
quality of life, sense of
pride and City image,
improve appearance of
all areas of Hermosa
Beach.

PW, CD,
CMO
2 3 for major
projects such
as sidewalks,
streets or
underground
utilities
B
B
for these
items
beyond
initial
funding
Seek street view
enhancements at every
opportunity, Identify
and incorporate
beautification projects
in annual CIP budget,
Seek quality private
developments.

Beautification is an
investment in the City
to add sales tax,
increase hotel
occupancy rates and
TOT collections, reduce
vacancy rates and
984

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
3 increase property
values.
3 Façade Improvement
Program for commercial
districts.

Private property
investment to improve
appearance of older
buildings in need of
refreshed exteriors.

CD 1 B Proactive outreach to
property owners,
Identify funding source
(CDBG, CIP, Grants)
Establish program
(architect assistance?).

Program to be catalyst
for improvements,
encouraging new
investment reducing
vacancy rates,
increasing property
values and providing a
more welcoming
atmosphere.
4 Beautification Awards Celebrate and
encourage
improvements.

Mayor’s
Award or
Chamber
1 B Annual recognition of
new or improved
private and public
spaces.
5 Consider Arts in Public
Places Program
AIPP would require
public art as part of
major commercial
developments as part
of citywide
beautification.

CD, CR,
Chamber
1 B Arts in Public Places
ordinance to add public
art as part of private
development to
increase beautification
with new projects.
985

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
4 6 Include beautificationrelated projects in the
City budget and CIP to
add value and for
residents and visitors to
enjoy. Investment in the
public realm improves
community quality of life
and welcomes visitors.

Improve public areas
appearance to enhance
community quality of
life and City image
and attract visitors.

PW,
Finance
1 2-3
depending
on projects
B
B-C
depending
on
projects
Results in increased
commercial and
residential property
values and community
pride, Increased hotel
occupancies, City
Transient Occupancy
Taxes and sales tax
collection
7 Placemaking Community
Forum, including City
Council, Planning
Commission and Parks,
Recreation and
Community Resources
Advisory Commission.

Consider Placemaking
principles as decision
making tool for staff
and commissions.

CD, CMO,
PW, CR
1 B Placemaking includes
activating underutilized
spaces and gathering
places, improving area
attractiveness for all
ages and abilities, and
including community in
decision making.
8 Placemaking Projects
Design. The City to
include community
through public
engagement.

Community
involvement in design
ensures area will be
enjoyed, promotes
local pride and quality
of life.

CD, CMO,
PW, CR
1 B Training and citywide
approach to seek
opportunities to
include community
input and
neighborhood
enhancement
opportunities.

DOWNTOWN
9 Work with Business
Community to Explore
Facilitate BID if desired
by Downtown property

CD, CMO
Chamber
2 A Initial information
meeting, determine
986

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
5 Formation of Business
Improvement District
(BID)
owners and businesses.

A BID can fund
activities beyond City
services identified by
property owners
and/or businesses.
which type of BID to
establish, form
advisory committee to
identify activities
needed and associated
costs to determine
assessments. BIDs can
also be considered in
other areas of the City.
10 Focused Update of
Downtown Revitalization
Strategy, including
Preservation of
Downtown Retail and
Restaurants and other
active uses on 1st floor
Review document to
determine what needs
to be completed or
added. Economic
market study
completed in 2021 can
inform updated
Downtown
Revitalization Strategy.

CD, PW,
CMO,
Consultant
2 A An updated strategy
that aligns with
emerging trends that
sets the stage for a
sustainable and vibrant
economic future.

Add incentives for
active uses on 1st floor
in Downtown with new
Zoning Code. Will need
consultant assistance
after RFP and selection.
11 Develop Identity/Vision
for the Downtown
Incorporate City brand
with marketing and
future improvements.

CMO, CD
PW,
Chamber,
Consultant
2 A Consistent with PLAN
Hermosa and
Downtown
Revitalization Strategy.

May be considered
concurrent with
Update of Downtown
987

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
6 Revitalization Strategy.

Would require RFP and
consultant contract
with public outreach.
12 Comprehensive
Downtown lighting
evaluation with complete
photometric study,
design and installation.

This requires a new CIP
request for funding,
community input for
desired lighting, and
public review.

Lighting plan for
Downtown with overall
vision to create safe
and welcoming
atmosphere.

PW,
Consultant
1 A Include in CIP budget,
RFP, include public
input process in
contract.

This could be an
example for other
areas of the City in
future.
13 Introduce and Facilitate
Downtown Experiences
(activate public spaces,
add interest for residents
and visitors)
Enhance the special
sense of place
Downtown to add
vibrancy and attract
new business interest
and investment.

CD, PW,

CMO, CR,
Chamber
1 B Seek opportunities for
art, music and special
experiences in
identified Downtown
locations. Added foot
traffic to add
customers and increase
sales tax, increase
hotel occupancy rates
and TOT collections,
reduce vacancy rates
and increase property
values.
988

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
7 14 Permanently Allow
Outdoor Dining Areas
and Lane
Reconfigurations
To add vibrancy of
public and private
outdoor spaces,
enhance sense of place
and continue to offer
outdoor options safely
and comfortably. To
move traffic at safer
speeds and encourage
all mobility options.

CD, PW,
CMO
2 A City Council ordinance
to change codes, CEQA
analysis, CA Coastal
Commission approval.

Require encroachment
rental fees and
standards, including
appearance, and to
allow commercial use if
not in use by business.
989

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS

MUNICIPAL CODE

AMENDMENTS
15 Long Term Allowance of
Outdoor Music in
Business Locations
Allow temporary
outdoor music to
become permanent to
attract customers, add
vitality and provide
unique Hermosa Beach
atmosphere.

CD,
PW
2 A Amend Title 17
(Zoning). Include with
permanently allowed
Outdoor Dining.
16 Program to Allow
Outdoor Music in Public
Spaces
Add vibrancy and sense
of place to enhance
Downtown.

CR, PW,

CD, PD,
Chamber
1 B Develop program with
designated spaces and
hours for scheduled
musicians. Municipal
code amendments
(Title 12 Streets,
Sidewalks and Public
Places).

BUSINESS OUTREACH
17 Regular Communication
with Key Property
Owners to Encourage
Reinvestment and
Provide Support as
Needed
Meet with property
owners of prime
commercial sites to
discuss status and
opportunities.

CD, CMO,
CC rep.,
Chamber
1 A 4 meetings per year
Work with property
owners to overcome
obstacles to property
improvements and
investment.
18 Develop Business
Visitation Program
Build relationships with
businesses, understand
and better meet needs.

CD, CMO,
CC rep.,
Chamber
1 B Schedule regular visits
to a variety of
businesses such as
large employers, sales
tax generators, high990

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
9 visibility businesses.

LAEDC can supplement
City efforts with
business check-in
calls.6-10 visits per year
19 Annual Commercial
Property Owner and
Brokers Forum
Create opportunity to
communicate with
property owners and
brokers to share project
updates, City updates
and real estate trends.

CD, CMO,
CC,
Chamber
1 B Recognize roles of
property owners,
brokers and City to
strengthen
communications and
relationships through
annual meeting.

CITY ECONOMIC

DEVELOPMENT WORK

PROGRAM
20 Shop Local Program Encourage residents to
support local businesses
year-round to retain and
grow businesses and
strengthen local
economy.

CD, CMO,
Chamber
1 A Work with Chamber to
promote local
businesses through
social media and other
communications at
holiday season, ‘Small
Business Saturday” and
at every opportunity
year-round.
21 Provide Hermosa Beach
business information to
event promoters to
encourage use of local
Gain additional business
support from day
visitors attending
events.

CR, CD
GIS,
Chamber
1 A Develop virtual
business map with
services provided and
hours of operation to
991

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
10 vendors and distribution
to participants.
event promoters to
encourage year-round
patronage of local
businesses.
22 Retail Attraction Program
for Competitive,
Strengthened Retail
Help recruit new
businesses to reduce
vacancies, increase foot
traffic and strengthen
local economy.

CD, CMO
Chamber
1 B Identify vacancies,
communicate with
property owners, help
recruit businesses.
to reduce vacancies,
increase property
values and maintain
and increase sales tax
revenue.
23 Partnership with
Chamber of Commerce
to enhance Visitors
Bureau to develop and
promote the Hermosa
Beach brand and provide
visitor resources.

Promote Hermosa
Beach as an overnight
destination.

CMO,
Chamber
1 B Increase overnight
visitors to support
businesses year-round
, increase hotel
occupancy and City
transient occupancy
taxes. Visitors support
local businesses that
residents also enjoy
and strengthen the
local economy.
24 Periodic Community
Survey to Determine
What Types of Shops or
Goods are Desired and
Survey information to
identify gaps in services
or goods provided for
business attraction.

CD, CMO,
Chamber
1 B Biennial survey to
inform existing
businesses of market
needs and to help
992

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
11 Residents Drive Out of
Town to Patronize
Survey information is
helpful tool in business
recruitment since
community seeks
certain types of business
and shows market
demand.
attract new businesses
to reduce vacancies.
25 Explore Music Events and
Activities to Celebrate
Hermosa Beach Music
History and Provide
Musical Experiences for
Community and Visitors
Celebrate unique local
musical heritage for
community pride and to
distinguish Hermosa
Beach
to visitors.

CR,
Historical
Society
and
Museum,
Chamber
1 B Incorporate musical
history into events and
create new events.

Events in non-summer
season could attract
visitors in the non-peak
summer season and
increase sales tax,
increase hotel
occupancy rates and
TOT collections and
strengthen local
economy and Hermosa
Beach brand.
26 Development Assistance
Committee/Development
Review Committee
Provide early
feedback/info to
developers

CD, PW,
PD, Fire as
needed
1 B Formalize and promote
pre-development
meeting process. Early
information establishes
relationships and
993

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
12 reduces development
processing time.
27 Provide customer service
training to all City staff to
build on culture of
excellent customer
service.

Provide highest quality
service to residents and
businesses.

CMO, HR, 1 A Provide comprehensive
customer service
training with periodic
updates. Include
customer service
consideration for job
candidates. Build on
shared City culture of
excellent customer
service by all
employees.
28 Continuous
improvements to
streamline processes and
reduce approval times
for permit processes.

Provide certainty and
reduce approval times
through efficiencies.

CD, PW,
CMO
1 In Process Seek continuous staff
efficiencies, Periodic
Process Improvements
Workshops
1-2 per year
29 Continue staff member
assigned as Business
Liaison
Point of contact to assist
new and expanding
businesses.

CD 1 In Process Timely response to
inquiries, referrals,
maintain email
business@
hermosabeach.gov
30 Regular City Council
Review
Continue citywide
Economic Development
program.

CMO, CD,
PW
1 Continuous City Council review
with identification of
priorities and workplan
in January and July
each year to ensure
994

STRATEGIC ACTION OBJECTIVE STAFF EASE TO

IMPLEMENT/

DIFFICULTY
1-Easy
2-Medium
3-Difficult

PRIORITY/

TIMELINE
A-1st Year
B-2-3 Years
C-3 Years+

PERFORMANCE

MEASURES
STATUS
13 progress on Economic
Development Strategy
*CMO-City Manager’s Office, CD-Community Development, PW- Public Works, CR-Community Resources, CC – City Council representative, PDPolice Department, and HR-Human Resources. The Chamber of Commerce and professional consultants are listed here. 995
Economic Development Strategy as Implementation of PLAN Hermosa PLAN Hermosa, the City’s General Plan, was adopted by the City Council in August 2017. The Economic Development Strategy supports several PLAN Hermosa goals and policies that are listed below.

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

Policies:
• 6.1 Long-term economic development. Support the development and implementation of longterm economic development strategies that seek to establish and keep new businesses and a strong middle class in Hermosa Beach over the decades to come. • 6.2 Regional presence. Encourage economic development strategies that will make Hermosa Beach a driving force and jobs center behind the regional economy of the South Bay region. • 6.3 Diversified Economy. Encourage economic development strategies that allow the city to move beyond reliance on its two main industries – accommodation and food service and retail trade – and transform itself to a mature mix of economic activity and job opportunities. • 6.4 Business support. Support the Chamber of Commerce, retailers, tourist service businesses, artists, and other agencies to develop an aggressive marketing strategy with implementation procedures.
• 6.5 Creative economy. Prioritize strategies that will create an economy full of diverse talents, trades and goods for the city. For long lasting economic success, a range of services, arts, entertainment and retail should be supported on all scales of the city’s economy. • 6.6 Pop-up shops. Develop plans and programs for underutilized spaces, such as vacant buildings, utility corridors, parkways, etc., for temporary retail, restaurant, and community promoting uses. • 6.7 Retail base. Encourage economic development reflective of the character of Hermosa Beach with small and medium scale retail development within Hermosa Beach in order to create a stronger tax base and increase the City’s tax revenue.

Land Use Element
Goal 1. Create a sustainable urban form and land use patterns that support a robust economy and high quality of life for residents.

Policies:
996
• 1.1 Diverse and distributed land use patterns. Strive to maintain the fundamental pattern of existing land uses, preserving residential neighborhoods, while providing for enhancement of corridors and districts in order to improve community activity and identity. • 1.4 Diverse commercial areas. Promote the development of diversified and unique commercial districts with locally owned businesses and job- or revenue-generating uses. • 1.5 Balance resident and visitor needs. Ensure land uses and businesses provide for the needs of residents as well as visitors.
• 1.8 Respond to unique characteristics. Enhance the unique character and identity of the city’s neighborhoods, districts and corridors through land use and design decisions. Allow policies and programs to be focused on each unique character area of the city.

Goal 3. A series of unique, destination-oriented districts throughout Hermosa Beach. • 3.1 Unique districts. Encourage the development of local and city-wide districts and centers that address different community needs and market sectors and complement surrounding neighborhoods.
• 3.3 Diverse retail and office centers. Provide incentives to transform existing single-use commercial properties that are accessible into retail destinations by adding a diversity of uses, providing new pedestrian connections to adjacent residential areas, reducing the visual prominence of parking lots, making the centers more pedestrian-friendly and enhancing the definitions and character of street frontage and associated streetscapes. • 3.4 Diverse employment sectors. Strive to create districts that support increased employment activity, particularly for growing or emerging economic sectors. • 3.5 Compact office formats. New employment uses should be designed in a compact format with minimal front setbacks from the street, typical lease spans of 40 feet or less, and where feasible, combined with other commercial uses.
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Thank You to All Who Contributed to This Economic Development Strategy Economic Development Committee
Councilmember Mary Campbell, Chair
Planning Commissioner Peter Hoffman, Vice Chair
Mayor Michael Detoy, Committee Member
Planning Commissioner David Pedersen, Committee Member
Economic Development Stakeholders Advisory Group
Jessica Accamando
Frank Buckley
Colin Cooley
Tony Cordi
Jon David
Dave Davis
Brian M. Dunne
Lori Ford
Bob Jones
Bob Lombardo
Anthony Morrison
Ron Newman
Peter Nolan
Laura Pena
Josh Royal
Bill Sigler
Stacy Straus
Jonathan M. Wicks
City Staff Economic Development Team
Suja Lowenthal
Ken Robertson
Angela Crespi
Melanie Hall
Doug Krauss
Carlos Luis
Sirinya Matute
Joe Sanclemente
Christy Teague
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Report
Hermosa Beach Economic and
Market Study Update
Prepared for:

City of Hermosa Beach
Prepared by:

Economic & Planning Systems, Inc.

EPS# 204026
June 1, 2021
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Table of Contents

1. INTRODUCTION ......................................................................................................1

2. SUMMARY OF FINDINGS ............................................................................................4

3. COMPETITIVE CONTEXT ............................................................................................8 Socio-Economic Trends ............................................................................................ 8 Employment Trends .............................................................................................. 13

4. RETAIL TRENDS ................................................................................................... 15

5. HOTEL TRENDS.................................................................................................... 18

6. OFFICE TRENDS ................................................................................................... 22

7. DOWNTOWN HERMOSA BEACH ISSUES AND OPPORTUNITIES ............................................... 25 Area Description ................................................................................................... 25 Issues ................................................................................................................. 27 Opportunities ....................................................................................................... 28 Conclusions.......................................................................................................... 30 APPENDIX A: Business Community Input
APPENDIX B: Key Findings from 2014 Report
APPENDIX C: Supporting Market Data
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List of Tables
Table 1 Beach Cities Demographic Comparison ............................................................. 11 Table 2 Beach Cities Residential Mix............................................................................ 12 Table 3 Jobs by Industry, 2011-2018 .......................................................................... 14 Table 4 Daytime Population, 2018 .............................................................................. 14 Table 5 Beach Cities Shopping Destinations.................................................................. 15 Table 6 Beach Cities Retail Rents, Vacancies, Inventory ................................................. 16 Table 7 Beach Cities 2018 Taxable Sales Per Capita....................................................... 17 Table 8 Beach Cities Hotel Inventory: Existing and Pipeline ............................................ 20 Table 9 Beach Cities Class B and C Office Inventory ...................................................... 23 Table 10 Hermosa Beach Sales Tax Revenue, FY 2019-20................................................ 26 Table 11 Downtown District by Land Use ....................................................................... 31 Table 12 Downtown Hermosa Beach by Ownership Pattern............................................... 33 Table 13 Downtown Hermosa Beach by Acquisition and Construction Activity...................... 35 1001
List of Figures
Figure 1 Beach Cities Map........................................................................................... 11 Figure 2 Beach Cities Historical Retail Rents .................................................................. 17 Figure 3 Beach Cities Retail Vacancies .......................................................................... 18 Figure 4 Beach Cities Historical Class B and C Office Rents .............................................. 22 Figure 5 Beach Cities Historical Class B and C Office Vacancy........................................... 22 Figure 6 Downtown Hermosa Beach by Land Use ........................................................... 30 1002
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1. INTRODUCTION
Economic & Planning Systems (EPS) was retained by the City of Hermosa Beach (City) to update its previous Downtown Core Revitalization Strategy: Market and Economic Analysis Report dated January 15, 2014. This updated report is intended to inform the City’s efforts in formulate a citywide economic development strategy. In addition to updating the data included in the last report, the update expands the analysis to incorporate the City as a whole. Economic and market data available through third party sources have been updated to reflect the most current information, and the updated data are incorporated in the tables and text of the full report.

Some aspects of the prior report were based on onsite research and observations. These elements have not been updated, due to the limitations of the Covid-19 pandemic in terms of observing business operations and mix with so many businesses closed or operating at a reduced level.

For the most part, the recommendations of the last study are still valid, and useful as guides to economic development strategies. However, some conditions have changed since the original report was completed, and we have attempted to reflect these in the findings of the update. The most significant changes have to do with parking requirements and strategies; the trend toward working at home, which is likely to continue post COVID-19 and represents an opportunity the City can build upon; the evolution of the business mix and the reduction of externalities from bars on Pier Plaza; and the steps the City has taken to be more proactive in economic development and improving the business climate. EPS explored the ramifications of these changes through interviews with key stakeholders in the community, and have reflected what we have learned in the summary observations described in this executive summary.

Hermosa Beach still occupies a unique position within the triad of Beach Cities located in the South Bay area of the Los Angeles basin. Situated between the highly affluent Manhattan Beach to the north and the larger more urban Redondo Beach to the south, Hermosa is the smallest of the three cities. While also quite affluent, Hermosa Beach has a younger population, a greater proportion of renters, a smaller proportion of family households, and the smallest employment base. The City is known in particular for its laid-back beach lifestyle and nightlife entertainment offerings.

All three Beach Cities began as recreation and vacation destinations characterized by modest housing and commercial services catering primarily to vacationers, day visitors, and the small local population. As Los Angeles grew, the Beach Cities became very desirable places to live year-round, with clean air, excellent schools, the beach amenity, and an improving housing stock. Manhattan Beach in particular, with its superior proximity and transportation linkages to Los Angeles employment centers and LAX, has become very upscale with high home values and a very successful retail and commercial district. Hermosa Beach has benefited from similar trends, and as the city has matured, the Downtown District has evolved as well. Compared with Manhattan Beach, however, Hermosa Beach is in a more transitional stage as downtown commercial offerings offer less diversity in retail and fine dining than would be expected given the city’s demographics and high-quality locational assets.

The findings in this Report are based on currently available data, interviews with industry professionals, site visits, and the authors’ experience with similar projects. Actual future 1003
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2. DEMOGRAPHIC AND MARKET DATA UPDATE SUMMARY
P o p u l a t i o n , I n c om e a n d H o u s i n g
• The total Beach Cities population is approximately 121,000, with Redondo Beach the largest at 68,000, followed by Manhattan Beach at 36,000, and Hermosa Beach at 20,000.
• Hermosa Beach’s population grew just 0.7 percent between 2010 and 2019, but its population growth still exceeded its residential unit growth of -2.5 percent. The number of households in the City declined by 4.4 percent over the same period. • In 2020, Hermosa Beach had a median home value of $1.7 million, reflecting a 72 percent increase from 2012. Meanwhile, the median value of a home sold in Manhattan Beach increased to over $2.3 million, reflecting a price growth of 73 percent over the same period. The Redondo Beach median home value of just over $1 million is significantly lower than its Beach City neighbors but still much higher than the City of Los Angeles median of $694,000.
• Hermosa Beach’s median household income in 2019 was $137,000, nearly 40 percent higher than its figure in 2010. Manhattan Beach still possesses the highest median household income of the Beach Cities at $150,000, while Redondo Beach’s has now exceeded six figures, standing at $112,000
• As in 2010, in 2019 Hermosa Beach’s residential population is the youngest, the most transient, and the least family-oriented of the Beach Cities. The median age of Hermosa Beach residents is 39, compared with 44 in Manhattan Beach and 41 in Redondo Beach.

The percentage of owner-occupied households in Hermosa Beach is 42 percent, compared with 62 percent in Manhattan Beach and 48 percent in Redondo Beach. • Single-family homes make up 54 percent in Hermosa Beach. The number of single-family homes in Hermosa Beach has increased since 2010 as the number of multifamily homes has continued to fall. This trend, along with the dramatic increases in home values, reflects the replacement of older multi-family dwellings with larger, more expensive single-family homes, similar to the trend in Manhattan Beach.

Em p l o ym e n t
• Since 2011, job growth outpaced population growth in Hermosa Beach, with the 9 percent increase in jobs representing more than ten times the City’s population growth. • Much of the job growth in Hermosa Beach was in sectors associated with knowledge work. The combined finance, real estate, information, professional services, technical services, and executive management sectors now make up the second-largest segment in Hermosa Beach (19 percent).
• The importance of tourism, dining, and entertainment to the economies of all three Beach Cities is reflected in the job share for the accommodation and food services sectors, which contributed the largest category of Hermosa Beach jobs (24 percent). However, this category saw the largest drop in its share of total jobs since 2011, as knowledgebased jobs have grown at a faster rate. The Covid-19 Pandemic is also expected to have disproportionately impacted hospitality-related jobs.
• Despite the high growth of jobs relative to population in Hermosa Beach, the City maintained a strong bedroom community orientation with a jobs-to-household ratio of

0.71 in 2018. The U.S. Census Longitudinal Employment-Household Dynamic (LEHD) Survey reported that the City had a net commuter outflow of 2,475 that same year. 1005
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• There is at least 3.7 million square feet of destination retail within nine miles of Hermosa Beach
• As of Q4 2020, Hermosa had a citywide average annual retail lease rate of $3.54 per square foot, lower than Manhattan Beach ($5.29 per square foot), but above Redondo Beach ($2.98 per square foot). Retail vacancy in Hermosa Beach is the highest among the Beach Cities at 6.1 percent.
• Total taxable sales per capita in Hermosa Beach was $12,202 in 2019, slightly higher than Redondo Beach ($11,258), but significantly lower than Manhattan Beach ($19,192).

While Hermosa performed similar to Manhattan Beach in the Food Services and Drinking Places category, it lagged behind both Manhattan Beach and Redondo Beach in General Merchandise sales.

H o t e l s
• Hermosa Beach has an estimated 480 hotel rooms as of 2021, approximately half the amount in Manhattan Beach and less than one third the amount in Redondo Beach. • The most prominent hotel in downtown Hermosa is the Beach House Hotel, located on the Strand. It serves mainly leisure, business, and group travel, rather than a vacation destination clientele. It has continued to operate during the Covid-19 pandemic, but at lower occupancies. Early check-in and late check-out have allowed some rooms to be occupied by those who want to work outside the home, but in the community. • The H2O is a new 30-room hotel on Hermosa Avenue that opened in Late 2020.

O f f i c e
• Hermosa Beach’s office inventory stands at approximately 367,000 square feet, and remains small compared to Manhattan Beach and Redondo Beach, which have about 1.6 million and 2.4 million square feet of office space, respectively. According to CoStar, all of Hermosa Beach’s office inventory is classified as Class B or C space. • Overall, the Hermosa Beach market for Class B and C office space occupies a viable segment priced below Manhattan Beach but above Redondo Beach. As of the fourth quarter of 2020, Class B and C rents in Hermosa Beach average $3.75 per square foot and are trending up, compared with $3.17 per square foot in Redondo Beach and $4.25 per square foot in Manhattan Beach.
• Hermosa Beach office vacancy rate in Q4 2020 of 11.7 percent is nearly double that of Redondo Beach (5.7 percent) and triple that of Manhattan Beach (3.9 percent). • Marlin Equities expanded its office presence in its buildings along Pier Avenue and it is further expanding its presence in its building at the intersection of Pier and Manhattan Avenues. Baker/Burton Lundy has also expanded and upgraded its office presence on Upper Pier Avenue.
• A remodeled office building on upper Pier Avenue (200 Pier) was originally intended to offer for-sale office condominiums. It has turned out to be leased space and houses numerous small businesses.
• There are a few co-working office spaces in Hermosa, including Unita on Hermosa Avenue. There are quite a few more in Manhattan Beach, and there is potential to 1006
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3. KEY TRENDS: ISSUES AND OPPORTUNITIES
P a r k i n g
• Many interviewees noted that restrictive parking requirements in Hermosa Beach often prove to be a major barrier to economic growth, smart urban design, and maintaining the vitality of the historic downtown area. Relaxing the City’s parking standards in some cases would allow otherwise infeasible projects to be realized, facilitate rehabilitation and re-tenanting of historic buildings, and remove barriers to potential businesses wishing to locate in Downtown Hermosa.
• Restaurants in particular are less concerned about parking due to the growth in alternative transportation options, including ride sharing, carpooling, bicycling, and walking from nearby neighborhoods that have reduced car travel and the demand for customer parking.
• Employee parking takes up a lot of capacity that could serve patrons and visitors. Off-site employee parking could free up more customer parking and provide more parking for beach goers and visitors in the summer months.
• One of many suggestions for more strategically locating public parking is converting the tennis courts at the Community Center to structured parking. The City’s in lieu parking fee could be used to help finance parking in the Civic Center/Community Center area instead of on Lot A, north of 11th Street between Hermosa Avenue and Beach Drive.

Several interviewees stated that Lot A would be better used for mixed-use development and/or civic uses in light of its proximity to the Strand and frontage on Hermosa Avenue. • Parking uphill from the downtown commercial district would facilitate foot traffic passing by businesses. This juxtaposition has contributed to the vitality of the retail district in Manhattan Beach.
• It is generally agreed that restrictive parking requirements likely contributed to making the “Pier/Strand” hotel proposed on the Mermaid site financially infeasible. On-site parking requirements were also often cited as a major impediment to the rehabilitation and re-tenanting of older buildings that were built without off-street parking. • Alternative parking and TDM (Transportation Demand Management) strategies could alleviate the financial burden of on-site parking. TDM measures may include valet parking, shuttles, off-site employee parking, and the encouragement of bicycle and pedestrian access, for example.
• Some business owners commented that fewer parking spaces can be beneficial to their bottom line, as it sometimes translates to lower lease rates. • Interviewees were mixed in their assessment of the existing garage. While some noted that it removed demand for street and surface lot parking in the Downtown, and praised the public art component, others noted that it remains largely empty during off-peak periods and occupies a valuable piece of real estate adjacent to the Strand.

B u s i n e s s a n d L a n d U s e M i x
• As a means of identifying the appropriate tenanting strategy for Downtown, multiple interviewees suggested an organized means of obtaining residents’ input on their desired category of establishments.
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Economic & Planning Systems, Inc. 7 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx • It was overwhelmingly agreed that the public safety concerns associated with the latenight bar scene have subsided significantly in the past decade, though the problem remains to some degree, particularly late at night.
• While many hope for a continued trend away from Hermosa’s image as a nightlife destination, a few interviewees noted that some restaurants/bars depend on the post dining hours drinking to make sufficient revenue to cover their costs. • Among those hoping for a continued shift, a culinary-driven scene appears to be desired by many as a means of replicating the success of Downtown Manhattan Beach, and attracting a crowd that is less likely to cause police and EMT calls in the late hours. • One resounding point of unison among interviewees is that outdoor dining which has increased as restaurants struggle to survive during the pandemic should be retained permanently and encouraged moving forward.
• While Hermosa Beach has historically not been a strong location for Class A office space, it is in a unique position to capitalize on certain office trends given its demographic characteristics and quality of life. It was noted that the desirable environment, ample food and business services, and the trend toward business decision-makers wanting to work closer to home are supportive of the demand for Class A office space. • The likely ongoing trend of increased work from home could be augmented by coworking office space that offers an alternative to the home office some of the time. • The PCH corridor offers a general business location in an accessible South Bay coastal community, and has attracted larger users recently, including the national headquarters of the shoe company, Skechers, and Lazy Acres Natural Market. Aviation Boulevard also has potential for market-driven revitalization.
• Many businesses are shut down or operating at reduced levels due to the restrictions of the Covid-19 pandemic. However, it appears that a number of apparently closed restaurants and entertainment venues are remodeling and planning to reopen with new offerings post COVID-19.
• The Comedy and Magic Club is an iconic destination in Hermosa Beach and a valuable asset for the downtown. It is recommended that the City work to retain this unique entertainment asset.
• The Lighthouse at Pier Plaza has recently changed ownership with plans to continue as a live jazz club. Saint Rocke on PCH has also recently changed ownership with plans to return with live music. These small venues for live music or other entertainment are a benefit for the City and offer alternatives to venues that are more focused on alcohol sales.
• Other than older residential uses on the second floor of some buildings, residential uses are largely absent from the downtown core. The development of mixed-use residential on infill sites downtown would add “rooftops” to support downtown restaurant and retail businesses, and activate the streets in the downtown core, as well as provide incentives for new investment and more ground floor commercial space.

W o r k F r om H om e
• Beach cities in the LA metro area are very desirable locations due to the clean air, access to the beach as an amenity, and the charm of historic downtowns that have become increasingly vital. This is likely to increase the value and attraction of these areas for residents, but also as business locations as entrepreneurs and executives seek to reduce commuting on congested roads and highways.
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• Work from home increases the market support for local businesses and restaurants and should be encouraged by the City.
• Allowing and encouraging small scale coworking spaces, perhaps in mixed-use buildings could support work from home for those who need to be in an office part of the time, or prefer to have an option to work outside the home part of the time for other reasons. • Small scale vertical mixed-use buildings with ground floor commercial and shared coworking office space above could be accommodated on small, infill sites downtown.

Parking requirements could be reduced since many users would walk or bike to those locations from their homes.
• There is at least one coworking space in Hermosa, Unita, on Hermosa Avenue.

Manhattan Beach has a number of them, and it is likely more could be supported in Hermosa as an adjunct to the work at home trend.
• Multiple interviewees noted the potential benefits of converting second floor office along Upper Pier into live-work lofts. They anticipate that this will both ease some pressure on the residential market and add to the vitality of the Upper Pier commercial district, which has traditionally seen less foot traffic than the area surrounding Pier Plaza.

C i t y P o l i c y a n d R o l e o f C i v i c O r g a n i z a t i o n s • Multiple interviewees noted that, in the past, Hermosa Beach’s was not seen as a business-friendly city. Most clarified that this was no longer so, but that certain actions could be taken to further enhance the City’s image as it interacts with existing and potential businesses.
• A common theme was Hermosa’s use of conditional use permits (CUPs). Many understood that this tool was necessary to curb negative externalities of the City’s bar scene in the 2000s, but felt that conditions were often over-prescriptive, complicated the transfer of ownership for certain businesses, and that the application process to amend CUPs can be extremely cumbersome.
• Some interviewees expressed that the City does not have a comprehensive commercial strategy. However, they were heartened to hear that the city has appointed a Business Liaison and created and Economic Development Committee and a stakeholder’s group to address the business climate in the city.
• Those familiar with the Chamber of Commerce feel that the entity has a strong potential role, but has historically has not been as effective as it could be in providing guidance and advocacy for the City’s business community. Recent changes in leadership, as well as a surge in new Chamber members may reinvigorate the Chamber and make it more effective.
• Another issue mentioned during the interviews was the perception that the City has focused on Downtown Hermosa at the expense of other commercial nodes within the City. However, recent policy changes have assisted the Cypress district in the southern part of the City, and the City is looking at the PCH corridor and Aviation Boulevard, as places for larger businesses and employers, and considering how the City can help nurture reinvestment and renewal in the corridor business areas. • The City has recently made code amendments to reduce costs for new businesses, including adding a Minor Sign Review and added a Minor Conditional Use Permit process. 1010
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4. COMPETITIVE CONTEXT
S o c i o-E c o n om i c T r e n d s
Hermosa Beach is one of three Beach Cities in the South Bay area of Los Angeles County. The northern-most Beach City, Manhattan Beach, is located south of El Segundo, followed by Hermosa Beach and Redondo Beach at the southern end. A sandy coastal strip forms the western boundary of Manhattan Beach, Hermosa Beach, and a portion of Redondo Beach, which also has a significant inland portion. See Figure 1 for a map of the three Beach Cities.

Each of the three Beach Cities has benefited directly from the beach location to become a highly desired place to live, work, and play. With strong access afforded by the 105 and 405 Freeways and the nearby Los Angeles International Airport, the Beach Cities have developed a strong foundation of residential neighborhoods, employment nodes, and visitor attractions to become among the most affluent communities in the County.

And while the Beach Cities show distinctive economic and demographic characteristics, they are geographically conjoined so as to function as a closely inter-related market. The distance from the Sepulveda Shopping Center in northern Manhattan Beach to Riviera Village in South Redondo Beach is five-and-half miles along Pacific Coast Highway. Alternately, the walk or bike ride from northern Manhattan Beach to the King Harbor Marina in Redondo Beach is less than four miles along the beachfront Strand. The Hermosa Valley Greenbelt, a former rail corridor turned hiking and running trail that connects Manhattan Beach to King Harbor, is one of many alternative transportation and trails in the area. For Hermosa Beach, this high degree of interconnection has positive implications for future economic development.

Of the three Beach Cities, Manhattan Beach has the strongest demographic and economic profile, due to the City’s relatively superior location. As the northern-most Beach City, Manhattan Beach is the closest to the West Side job centers in Santa Monica and Century City and to major transportation infrastructure. In addition, Manhattan Beach’s top-rated school system is an attractive draw to young families, though Manhattan Beach’s Mira Costa High School also serves Hermosa Beach. Just south of Manhattan Beach, Hermosa Beach benefits—to a slightly lesser degree—from the same geographical advantages and top-rated school system. Further south, Redondo Beach exhibits a hybrid nature, as South Redondo reflects the characteristics of a pricy beachfront community while North Redondo more closely resembles neighboring inland cities such as Torrance and Hawthorne.

As shown in Table 1, the total Beach Cities population is approximately 121,000, with Redondo Beach the largest at 68,000, followed by Manhattan Beach at 36,000 and Hermosa Beach at 20,000. Contrary to the previous decade, population in all three Beach Cities grew at a slower pace between 2010 and 2019 than the City of Los Angeles (which is used here as a baseline reference). While residential demand has slowed in recent years, the Beach Cities feature high population densities and are largely built out, which has impeded the construction of new housing units and kept pressure on the housing supply. For example, in Hermosa Beach population growth was just 0.7 percent, but it still exceeded its residential unit growth of -2.5 percent. Similarly, while Redondo Beach’s population growth was a modest 1.4 percent, it too 1011
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A continuing trend among all the Beach Cities, particularly in Manhattan Beach and Hermosa Beach, is the upward spiral of median home values as a result of the constrained residential supply and high demand for beach community living. In 2020, Hermosa Beach had a median home value of $1.7 million, reflecting a 82 percent increase from 2012. Meanwhile, the median value of a home sold in Manhattan Beach increased to over $2.3 million, reflecting a price growth of 73 percent over the same period. The Redondo Beach median home value of just over $1 million is significantly lower than its Beach City neighbors but still much higher than the City of Los Angeles median of $694,000.

However, the Beach Cities have seen continued growth in household incomes as well. Hermosa Beach’s median household income in 2019 was $137,000, nearly 40 percent higher than its figure in 2010. Manhattan Beach still possesses the highest median household income of the three at $150,000, while Redondo Beach’s has now exceeded six figures, standing at $112,000.

All Beach Cities median household incomes significantly exceed the $58,000 median for Los Angeles. Levels of educational attainment in the Beach Cities have remained high as well, with over 34 percent of Manhattan Beach residents, 26 percent of Hermosa Beach residents, and 23 percent of Redondo Beach residents have graduate-level degrees, compared with 12 percent of Los Angeles residents.

While each Beach City retains a unique demographic profile, they have all seen similar trends in areas such as median age and families as a percentage of total households. As in 2010, in 2019 Hermosa Beach’s residential population is the youngest, the most transient, and the least familyoriented of the three. The median age of Hermosa Beach residents is 39, compared with 44 in Manhattan Beach and 41 in Redondo Beach. The percentage of owner-occupied households in Hermosa Beach is 42 percent, compared with 62 percent in Manhattan Beach and 48 percent in Redondo Beach. Family households in Hermosa Beach make up 46 percent of all households (up from 41 percent in 2010) as compared to 71 percent in Manhattan Beach (from 64 percent in 2010), 61 percent in Redondo Beach (from 56 percent in 2010), and 60 percent in Los Angeles (down from 61 percent in 2010).

Despite distinctions between the residential communities of each of the Beach Cities, the variances appear to be narrowing as high housing costs in Manhattan Beach cause residential demand to spill over into Hermosa Beach. Some illustration of the underlying residential dynamics can be found in Table 2, showing residential mix in each of the Beach Cities. Singlefamily homes make up 81 percent of the housing stock in Manhattan Beach, compared with 54 percent in Hermosa Beach, 55 percent in Redondo Beach, and 44 percent in Los Angeles. Since 2010, the number of single-family homes in Hermosa Beach increased as the number of multifamily homes has continued to fall: 206 new single-family homes were constructed while 459 multifamily units were eliminated. Based on anecdotal information, this was due to construction of large single-family homes on lots formerly occupied by older multifamily stock. In this environment of escalating land values, Manhattan Beach has become increasingly unaffordable, leaving Hermosa Beach as the next-best option for aspiring Beach Cities residents. 1012
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Source: ESRI
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Table 1 Beach Cities Demographic Comparison
Hermosa Beach Manhattan Beach Redondo Beach City of Los Angeles 2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
General
Total Population 19,506 19,650 0.7% 35,135 35,573 1.2% 66,748 67,700 1.4% 3,792,621 3,959,657 4.4% Total Households 9,389 8,979 -4.4% 13,732 13,520 -1.5% 28,540 27,621 -3.2% 1,312,002 1,373,864 4.7% Total Housing Units 10,311 10,049 -2.5% 15,128 15,363 1.6% 30,243 29,979 -0.9% 1,415,592 1,474,043 4.1% Median Household Income $99,976 $137,188 37.2% $131,723 $150,083 13.9% $91,737 $112,271 22.4% $48,746 $58,385 19.8% Median Home Value (1) $957,000 $1,740,000 81.8% $1,379,000 $2,392,635 73.5% $640,000 $1,073,000 67.7% $374,200 $694,583 85.6% Median Rent $1,795 $2,181 21.5% $1,995 $2,628 31.7% $1,575 $2,072 31.6% $1,104 $1,450 31.3% Average Household Size 2.04 2.19 7.4% 2.50 2.63 5.2% 2.29 2.45 7.0% 2.81 2.82 0.4% Average Family Size 2.80 2.87 2.5% 3.10 3.14 1.3% 2.94 3.07 4.4% 3.53 3.62 2.5% Family/Total Households (%) 41% 46% 64% 71% 56% 61% 61% 60% Owner-Occupied/Total Units (%)(2) 42% 42% 64% 62% 49% 48% 36% 34% Labor Force Participation (%) 80% 77% 68% 64% 75% 72% 67% 66% In-City Jobs/Household 0.62 0.67 1.25 1.30 0.82 0.86 1.22 1.19 Age
Median Age 37.0 39.3 6.2% 40.9 44 7.6% 39.3 40.7 3.6% 34.1 35.6 4.4% Age 18+ (% of total) 84% 82% 75% 73% 81% 78% 77% 79%
Age 65+ (% of total) 9% 12% 13% 17% 10% 13% 10% 12%
Household Income
< $15,000 5% 5% 4% 3% 7% 5% 15% 13%
$15,000 - $49,999 18% 11% 12% 12% 19% 15% 36% 31%
$50,000 - $99,999 27% 22% 21% 20% 28% 25% 27% 27%
$100,000 - $149,999 21% 17% 18% 15% 21% 20% 11% 14%
$150,000+ 29% 46% 45% 50% 26% 35% 11% 16%
Education (Age 25+)
No High School Diploma 2% 2% 1% 2% 4% 4% 26% 23%
High School Graduate 6% 6% 7% 7% 13% 11% 19% 19%
Some College, No Degree 17% 11% 13% 11% 19% 19% 18% 18% Associate Degree 6% 5% 5% 5% 7% 8% 6% 6%
Bachelor's Degree 44% 49% 42% 40% 37% 36% 20% 22%
Master's/Professional/Phd. 25% 26% 32% 34% 20% 23% 10% 12% (2) Includes units for sale
(1) Median home values for 2012 and 2020
Sources: US Census American Community Survey 5-year Estimate 2015-2019; Economics & Planning Systems 1014
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Table 2 Beach Cities Residential Mix
Hermosa Beach Manhattan Beach Redondo Beach City of Los Angeles 2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
2010 2019 '10-'19
Change
Residential Mix
Total 10,311 10,058 (253) 15,128 15,020 (108) 30,243 30,024 (219) 1,415,592 1,493,108 77,516 Single-Family
1, Detached 43% 43% (74) 69% 72% 322 40% 41% 313 39% 38% 15,540 1, Attached 8% 11% 280 8% 9% 150 14% 14% 75 6% 6% (948) Multi-Family
2 13% 12% (155) 10% 7% (379) 4% 2% (435) 3% 3% 2,925
3 or 4 11% 7% (369) 7% 5% (232) 11% 11% (159) 6% 6% 3,927 5 to 9 7% 10% 300 2% 2% (14) 7% 8% 393 9% 9% 7,421
10 to 19 6% 3% (313) 2% 2% 15 7% 7% (7) 10% 10% 1,338
20+ 11% 12% 59 2% 2% (49) 17% 16% (327) 27% 28% 46,175
Mobile Home 2% 1% (67) 0% 1% 79 0% 1% 44 1% 1% 917
Other 0% 1% 86 0% 0% 0 0% 0% (116) 0% 0% 221
Owner-Occupied Units by Value
< $50,000 1% 2% 1% 2% 1% 1% 2% 1%
$50,000 - $499,999 7% 5% 4% 2% 9% 5% 49% 32%
$500,000 + 92% 93% 95% 96% 90% 95% 49% 67%
Residential Unit Age
Built since 1980 22% 29% 30% 36% 31% 34% 21% 25%
Built 1940 to 1979 61% 59% 62% 57% 63% 62% 59% 55%
Built 1939 or earlier 16% 12% 8% 7% 6% 4% 21% 20%
(1) Median home values for 2019, and net growth from 2010 to 2019 Sources: American Community Survey 5-Year Estimates 2019; Economics & Planning Systems 1015
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Historically, the Beach Cities served primarily as a vacation destination before evolving into permanent small-town communities. The Southern California aerospace industry was largely based in and near the South Bay and provided a source of high-paying jobs until the end of the Cold War, when sudden cancellation of government contracts and research initiatives helped caused an exodus of aerospace firms and resulted in recession. (However, Northrop Grumman remains the largest employer in Redondo Beach, and a cluster of aerospace firms maintain a strong presence in El Segundo to the north.) More recently, the Beach Cities have benefited from the growth of high-income knowledge workers seeking work environments that are closer to home and that offer a high quality of life.

Table 3 shows that, since 2011, job growth outpaced population growth in Hermosa Beach and Manhattan Beach: the 9 percent job growth in Hermosa Beach was more than ten times population growth, while 5 percent job growth in Manhattan Beach nearly quadrupled population growth. (Redondo Beach, with a large industrial sector, experienced continued job losses in keeping with larger structural declines in manufacturing.) Much of the job growth in Hermosa Beach and Manhattan Beach was in sectors associated with knowledge work. The combined finance, real estate, information, professional services, technical services, and executive management sectors make up the largest segment of Manhattan Beach employment (31 percent), and the second-largest segment in Hermosa Beach (19 percent). Since 2011, such knowledge workers represented the largest net gain of jobs in Manhattan Beach. The importance of tourism, dining, and entertainment to the economies of all three Beach Cities is reflected in the job share for the accommodation and food services sectors, which contributed the largest category of Hermosa Beach jobs (24 percent) the second-largest for Manhattan Beach (21 percent), and the third-largest for Redondo Beach (16 percent). However, in Hermosa Beach, this sector experienced the largest drop in employment since 2011.

Each of the Beach Cities has seen an increase in jobs per household as well as its daytime population since 2011. However, despite the high growth of jobs relative to population in Hermosa Beach, the City maintains a strong bedroom community orientation with a jobs-tohousehold ratio of 0.71 in 2018. This means that for every Hermosa Beach household, there were 0.71 jobs in the City. A normalized ratio, as reflected by the City of Los Angeles, is 1.16. A low jobs-to-household ratio typically means a daily net outflow of workers and a decline in the day population. As shown in Table 4, the population of Hermosa Beach falls 1,950 per day, or 10 percent. Redondo Beach, like Hermosa Beach, is also primarily a bedroom community and loses 10 percent of its population to out commuting daily. Manhattan Beach, by comparison, has a jobs-to-household ratio of 1.25, which results in a day population net inflow of 4,950, equivalent to a 14 percent expansion of the residential population. However, Hermosa Beach is expected to benefit from the work from home trend, which keeps more residents and increases the daytime customer base for Hermosa Beach businesses.

A large day population in an urban area often results in additional retail demand. Several retailers interviewed in Manhattan Beach and Hermosa Beach indicated that the difference in day population was a major reason why Hermosa Beach could not compete as effectively for retail tenants and restaurants.
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Table 4 Daytime Population, 2018
Hermosa Beach Manhattan Beach
2018 '11-'18
Change
Share 2018 '11-'18
Change
Share 2011 '11-'18
Change
Share Share
All Jobs 6,409 547 100% 17,579 160 100% 25,851 (2,202) 100% 100% 9% 1% -9%
Accommodation and Food Services 1,535 (266) 24% 3,335 (513) 19% 3,155 817 17% 9% FIRE (2), Infmtn, Prof./Tech., Exec.Mgmt. 1,236 210 19% 5,443 684 31% 3,602 76 16% 21% Retail Trade 899 52 14% 2,781 (314) 16% 3,090 (98) 13% 8% Health Care and Social Assistance 684 290 11% 1,889 558 11% 1,079 593 7% 16% Admin. & Support, Waste Mgmt./Remed. 492 128 6% 874 335 5% 734 (19) 3% 4% Other Services (excluding Public Admin.) 370 (20) 8% 930 (446) 5% 900 (110) 3% 6% Production (1) 325 169 2% 307 (107) 3% 990 236 1% 7%
Wholesale Trade, Transport, Warehousing 294 88 4% 385 35 6% 8,300 (1,908) 6% 9% Educational Services 249 33 5% 1,009 65 2% 1,242 146 27% 14% Arts, Entertainment, and Recreation 171 (118) 5% 178 (107) 2% 485 72 5% 4% Public Administration 154 (19) 3% 448 (30) 1% 386 (119) 2% 3% (1) Production includes Agriculture, Forestry, Fishing, Hunting, Resource Extraction, Utilities, and Construction (2) FIRE includes Finance, Insurance, and Real Estate
Source: LEHD Census, Economic & Planning Systems, Inc.

Redondo Beach L.A. Hermosa
Beach
Manhattan
Beach
Redondo
Beach
Day Population (2018)
Residential Population 19,650 35,573 67,700
Live in City, Employed Outside City (8,042) (12,101) (27,841) Employed in City, Living Outside City 5,567 16,478 21,371 Day Population 17,175 39,950 61,230
Daily Inflow/(Outflow) (2,475) 4,377 (6,470)
Daily Inflow/(Outflow) as % of Residential Population -13% 12% -10% Population Density/Square Mile
Population 13,800 9,000 10,900
Day Population 12,000 10,100 9,900
Sources: US Census, Census LEHD, ESRI, Economic & Planning Systems Inc. 1017
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5. RETAIL TRENDS
The retail competitive landscape for Hermosa Beach, which includes all of the Beach Cities and parts of El Segundo and Torrance, offers a wide variety of shopping options, including large enclosed malls, open-air lifestyle centers, and downtown street retail. As shown in Table 5, there is at least 3.65 million square feet of destination retail within a 10-mile radius of Hermosa Beach.

Table 5 Beach Cities Shopping Destinations
However, the most direct retail competition for Hermosa Beach is walkable retail districts in downtown Manhattan Beach and Riviera Village in Redondo Beach. As shown in Table 6, downtown retail commands the highest rents and lowest vacancies in each of these cities. Rents in the Hermosa Beach downtown are roughly equal to the city-wide. Conversely, Manhattan Beach downtown rents exceed city-wide rents by 30 percent, from $5.29 to $6.89, and Riviera Village rents surpass the Redondo Beach average by 65 percent, from $2.98 to $4.91. In all three cases, downtown vacancies are higher than the citywide average, from 7.5 percent in Hermosa Beach to 4.0 percent in Manhattan Beach to 5.5 percent in Riviera Village. These high vacancies can likely be attributed to the Covid-19 pandemic, as they increased markedly since the beginning of 2020. The generally strong performance of downtown Manhattan Beach and Redondo Beach, as well as other walkable retail districts has encouraged pipeline projects such as the Redondo Beach Pier redevelopment and the Point lifestyle center in El Segundo, both of which have been designed to provide streetscape character.

From a competitive perspective, as indicated by Figure 2 and Figure 3, rents and vacancy rates in Manhattan Beach have consistently out-performed those in Hermosa Beach and Redondo Beach. According to brokers and local business people, this is due primarily to the more affluent demographic profile of Manhattan Beach residents, who can support higher-end retailers than neighboring cities, and to Manhattan Beach’s vibrant daytime population. Another factor may be the relative lack of retail diversity in Hermosa Beach. On a total sales-per-capita basis, as shown in Table 7, Hermosa Beach is well exceeded by Manhattan Beach, and slightly higher than Redondo Beach. While Hermosa Beach performs strongly in food and beverage stores, restaurants and bars, it appears to have retail leakage in categories including apparel, general merchandise, and large-format retail segments like garden supplies, home furnishings, auto parts, and general wholesale items. Of these leakage categories, the street retail character and small floor plates in Downtown Hermosa Beach are best suited to supporting an expansion in the apparel (including women’s fashion goods, general apparel for younger consumers, and sports Shopping Center Type of Center Miles from
Hermosa
Beach
Retail
Sq.Ft.

Key Tenants Address
South Bay Galleria Enclosed Mall 3.5 955,000 Macy's; Nordstrom; Kohls 1815 Hawthorne Blvd.; Redondo Beach, CA, 90278 Manhattan Village Shopping Center Enclosed Mall 3.4 572,837 Macy's; Williams-Sonoma; Coach 3200 Sepulveda blvd.; Manhattan Beach, CA 90266 Riviera Village Downtown Street Retail 3.4 413,000 Local boutiques and services Plaza El Segundo Open-Air Lifestyle/Big Box 3.8 400,000 Whole Foods; Anthropologie; H&M; Lululemon760 South Sepulveda Blvd; El Segundo, CA 90245 Redondo Beach Pier Downtown Street Retail 1.5 400,000 Shade Hotel, Theater Promenade on the Peninsula Open-Air Lifestyle Center 9.0 374,000 Williams-Sonoma; Banana Republic; Gap 550 Deep Valley Drive; Rolling Hills Estates, CA 90274 Downtown Manhattan Beach Downtown Street Retail 2.1 231,000 True Religion, Shade Hotel, boutiques the Point Open-Air Lifestyle Center 3.8 115,000 Mendocino Farms, True Food Kitchen 850 South Sepulveda, El Segundo Redondo Shores Open-Air Lifestyle/Big Box 1.5 102,000 Whole Foods; Rite Aid; GNC 403-419 N Pacific Coast Hwy Fisherman's Wharf Downtown Street Retail 1.5 90,000 Local restaurants and souvenir shops 415 Diamond Street; Redondo, CA 90277 3,652,837
Source: L.A. County Assessor; CoStar; Economic & Planning Systems, Inc. 1018
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Ultimately, successful improvement in the retail mix will depend on a broad range of factors discussed further in Section 7.

Table 6 Beach Cities Retail Rents, Vacancies, Inventory Figure 2 Beach Cities Historical Retail Rents
As of 4Q 2020 All Retail Downtown Retail1 All Retail Downtown Retail2 All Retail Downtown Retail3 Rents (/Sq.Ft.) $3.54 $3.53 $5.29 $6.87 $2.98 $4.91
Vacancy 6.1% 7.5% 1.8% 4.0% 4.1% 5.5%
Inventory (Sq Ft.) 1,032,661 263,336 1,893,104 267,684 3,799,996 325,159 (3) "Downtown" includes Riviera Village in Redondo Beach Source: CoStar; Economic and Planning Systems, Inc.

Hermosa Beach Manhattan Beach Redondo Beach
(1) "Downtown" includes Pier Avenue, Pier Plaza, and Hermosa Ave. between 9th and 15th Streets in Hermosa Beach (2) "Downtown" includes the rectangle formed by the Strand, 10th, 13th, and Valley Blvd. in Manhattan Beach $3.54
$2.98
$5.29
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Hermosa Beach Redondo Beach Manhattan Beach
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Table 7 Beach Cities 2019 Taxable Sales Per Capita

6.1%

1.8%

4.1%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%
Hermosa Beach Manhattan Beach Redondo Beach
Hermosa
Beach
Manhattan
Beach
Redondo
Beach
City of Los
Angeles
Population (1) 19,650 35,573 67,700 3,959,657
Total Taxable Sales (2) $263,669,054 $809,970,962 $902,091,369 $50,174,450,540 Taxable Sales Per Capita
Motor Vehicle and Parts Dealers $723 $2,326 $819 $1,243 Home Furnishings and Appliance Stores $696 $802 $747 $475 Building Material and Garden Equipment - - $113 $665
Food and Beverage Stores $1,539 $1,816 $1,393 $758
Gasoline Stations - $1,013 $892 $1,171
Clothing and Clothing Accessories Stores $590 $1,946 $1,392 $857 General Merchandise Stores (3)
- $2,725 $1,311 $735
Food Services and Drinking Places $5,219 $5,715 $3,478 $2,580 Other Retail Group (4) $3,435 $2,847 $1,213 $1,184
Total Taxable Sales Per Capita $12,202 $19,192 $11,358 $9,666 (1) U.S. Census Bureau; American Community Survey; Population, 2019 Source: State of California Board of Equalization (BOE); Economic & Planning Systems, Inc. (2) California State Board of Equalization, 2019
(3) BOE catch-all category; includes florists, office supplies, gift/novelty/souvenirs, used merchanise, and other miscellaneous items
(4) BOE category; includes wholesale taxable sales categories including agriculture, mining, construction, manufacturing, etc.
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6. HOTEL TRENDS
Hermosa Beach has the potential to become a top hotel destination in Los Angeles County.

Despite the attractiveness of the Beach Cities for visitors, there are few luxury hotels in the area.

As shown in Table 8, only the Beach House in Hermosa Beach, the Portofino in Redondo Beach and the Shade in Manhattan Beach are considered upscale or luxury. What’s more, neither the Portofino nor the Shade has beachfront exposure. In all of Los Angeles County, there are very few upscale beach-front hotels. Consequently, the opportunity in Hermosa Beach to develop an upscale beachfront hotel represents an extremely valuable option.

H2O, a 30-room “mid-range” boutique hotel located on Hermosa Beach at 15 th Street, is the
most recent hotel property developed in Hermosa Beach. The Beach House continues to perform well relative to its competitive set, and has room rates of approximately $325-$340 per night.

Owned and operated as a fractional ownership, in which rooms unoccupied by the owners are rented as typical hotel rooms, the Beach House achieved high occupancy levels of near 85-90 percent prior to the pandemic. In the latter half of 2020, it reported occupancy levels of 65 percent, despite the effects of the Covid-19 pandemic. Because ground floor rooms front directly on the Strand, the Beach House has effectively privatized strand/beach frontage for hotel guests.

As shown by Table 8, Manhattan Beach has not seen a new hotel delivery since the Shade Hotel was completed in 2012. Another Shade Hotel was completed in Redondo Beach in 2016, along with a Hilton in 2014 and a Homewood Suites in 2017. These three hotels have added nearly 380 rooms to Redondo Beach’s hotel inventory over the past seven years.

In Hermosa Beach, the envisioned Mermaid site hotel, on the other hand, had the potential to be strongly catalytic. The site on the corner of Pier Plaza and the Strand is arguably the best available commercial land between Redondo Beach and Manhattan Beach. If operated as an upscale or luxury hotel, it could become a landmark beachfront destination, generate significant economic and fiscal impacts, and provide residents and Beach City visitors with an upscale alternative to current Pier Plaza bars and restaurants. This, in turn, could influence tenanting decisions by Pier Plaza and greater downtown property owners and lead to a diversification of current uses.
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Economic & Planning Systems, Inc. 20 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Table 8 Beach Cities Hotel Inventory: Existing and Pipeline Name Year Built Category Rooms
Hermosa Beach
Current
Beach House 1998 Luxury 96
Grandview Inn 1973 Economy 17
H2O Hermosa 2020 Mid-Range 30
Hampton Inn 2002 Economy 70
Holiday Inn Express 2001 Economy 80
Hotel Hermosa 1990 Mid-Range 80
Quality Inn 1986 Economy 68
Sea Sprite Ocean Front Motel 1957 Economy 39
480
Manhattan Beach
Current
Belamar Hotel 1961 Mid-Range 134
Crimson Hotel 1988 Economy 45
Hawthorn Suites 2003 Mid-Range 53
Hi View Inn and Suites 1952 Economy 22
Manhattan Beach Marriott 1986 Mid-Range 373
Manhattan Village Inn & Suites 1986 Economy 18
Residence Inn Manhattan Beach 1985 Mid-Range 176
Sea View Inn 1962 Mid-Range 37
Shade Hotel 2012 Luxury 38
Wave Hotel 1995 Economy 44
940
Redondo Beach
Current
Best Western Plus 1979 Economy 108
Best Western Redondo Galleria 1984 Economy 51
Sonesta [1] 1986 Mid-Range 350
Hilton Garden Inn 2014 Mid-Range 147
Homewood Suites 2017 Mid-Range 184
Marriott Residence Inn 2014 Mid-Range 172
Moonlite Inn 1986 Economy 23
Pacific Coast Inn 1960 Economy 20
Portofino Hotel & Marina 1962 Upscale 161
Ramada Limited Redondo Beach 1990 Economy 40
Redondo Beach Hotel 1979 Mid-Range 112
Redondo Inn and Suites 1955 Economy 36
Redondo Pier Inn 1987 Economy 37
Seaside Motel 1962 Economy 27
Shade Redondo Beach 2016 Luxury 45
1,513
Current Total 2,933
[1] Formerly the Crowne Plaza
Source: CoStar, Hotel Websites & Staff; Economic and Planning Systems, Inc. 1022
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7. OFFICE TRENDS
As shown in Table 9, Hermosa Beach’s office inventory stands at approximately 367,000 square feet, and remains small compared to Manhattan Beach and Redondo Beach, which have about

1.6 million and 2.4 million square feet of office space respectively. As of Q4 2020, Hermosa Beach’s office inventory is entirely Class B and C office space, though the construction of Skecher’s global headquarters will deliver about 75,000 square feet of Class A space in 2022.

The City’s office market inventory has grown by 5 percent in the last 10 years, a growth rate higher than both Manhattan Beach and Redondo Beach, both of which saw negligible growth over that same period.

Overall, the Hermosa Beach market for Class B and C office space in Hermosa Beach occupies a viable segment priced below Manhattan Beach but above Redondo Beach. As of the fourth quarter of 2020, as shown in Figure 4, Class B and C rents in Hermosa Beach average $3.75 per square foot and are trending up, compared with $3.17 per square foot in Redondo Beach and $4.25 per square foot in Manhattan Beach.

Historical office vacancies, as shown in Figure 5, indicate considerable volatility in the Hermosa Beach office market, compared with the other Beach Cities. As of the fourth quarter of 2020, the Hermosa Beach office vacancy rate of 11.7 percent is significantly higher than the 3.9 percent rate in Manhattan Beach and the 5.7 percent rate in Redondo Beach.

Table 9 Beach Cities Class B and C Office Inventory
As of 4Q 2020 Hermosa Beach Manhattan Beach Redondo Beach Rents (/Sq.Ft.) $3.75 $4.27 $3.17
Vacancy 11.7% 3.9% 5.7%
Inventory (Sq Ft.) 366,990 984,158 2,053,563
Sources: CoStar; EPS
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Economic & Planning Systems, Inc. 22 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Figure 4 Beach Cities Historical Class B and C Office Rents Figure 5 Beach Cities Historical Class B and C Office Vacancy $3.75
$4.27
$3.17
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Hermosa Beach Manhattan Beach Redondo Beach

11.7%

3.9%

5.7%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%
Hermosa Beach Manhattan Beach Redondo Beach
Source: CoStar, Economic & Planning Systems, Inc.

Source: CoStar, Economic & Planning Systems, Inc.
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8. HERMOSA BEACH ISSUES AND OPPORTUNITIES
A r e a D e s c r i p t i o n
Hermosa Beach’s Downtown District is the commercial heart of the City. With approximately 18.5 acres of commercially zoned land area, the Downtown District hosts a majority of the City’s boutique retail outlets and a large proportion of its hotel and office uses. As recently as the 1980s, Downtown Hermosa Beach was marked by dilapidated and abandoned buildings, high levels of vagrancy, and recurring public safety issues associated with the area’s rough-andtumble bars. City investments in the 1990s and early 2000’s in public infrastructure, most notably the redesign of Pier Plaza and Upper Pier Avenue, helped transform Downtown Hermosa Beach into a popular daytime and nightlife destination.

The Downtown District centers on the intersection of Pier and Hermosa Avenues and extends along Pier Avenue from the Strand through Pier Plaza to Valley Boulevard and along Hermosa Avenue from 15th Street to 8th Street. The western end of Pier Avenue terminates with Pier Plaza, a large pedestrian-only area that attracts visitors from throughout the County for its access to the Pier, great outdoor dining options, events, and nightlife. Most of Downtown’s busiest restaurants and bars cluster on Pier Plaza and the Pier Avenue/Hermosa Avenue intersection, while the streets north, south, and east host a variety of retail, personal service and food serving business, and some lodging uses. The other significant retail clusters include a number of office uses on Pier Avenue and a concentration of health and beauty uses in upper Pier Avenue.

Several physical characteristics make Downtown Hermosa Beach unique. As Pier Avenue descends to the intersection with Hermosa Avenue, it follows a broad and dramatic sweep, which allows for a pleasing streetscape experience (enhanced greatly by the recently completed Pier Avenue Streetscape Project) that provides numerous focal points for commercial activity. Where Pier Avenue meets Hermosa Avenue, the grade ends, leaving a full flat block between Hermosa Avenue and The Strand, providing Pier Plaza with an unmediated connection to the beach.1 The PCH Corridor is the largest contributor to sales tax revenue in Hermosa Beach, generating nearly $1 million for the City in FY2019-2020, as shown in Table 11, which is nearly half of the City’s sales tax revenue. Downtown Hermosa Beach is also a significant contributor to the City’s fiscal base, generating nearly $648,000 for the City’s General Fund, and accounting for a third of all sales tax revenue collected by the City. However, the Downtown has seen its volume of sales tax revenue drop by over 20 percent from the prior year, the largest amount of any area in the City. This decline is likely attributable largely to the impacts of the covid-19 pandemic.

However, it should be noted that sales taxes represent a relatively small portion of the City’s overall fiscal revenues, amounting to approximately 12 percent of all General Fund revenues in fiscal 2019-20. (See Appendix C for fiscal revenue breakdowns and historical detail.) 1 Other area beachfront commercial districts in LA County, such as in Santa Monica, Malibu, Manhattan Beach, and Redondo Beach, tend to be separated from the beach by steep grades or major roads.
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I s s u e s
Despite location advantages and fiscal contributions, Downtown Hermosa Beach has not— according to area land use professionals and residents—fulfilled its potential as a commercial district for residents and visitors. Over the course of this analysis, several issues regarding the current pattern of Downtown land uses and tenanting emerged.

A common concern is over Pier Plaza tenants and whether they represent the best fit for City residents. Conflict between late-night Pier Plaza revelers and neighborhood residents led to the Measure B “Quiet Nights” ballot initiative, which aimed to reduce late-night operating hours of Pier Plaza establishments. As shown in Table 11, establishments with CUPs granting late-night operating privileges make up nearly 48,000 square feet of area in the Downtown Core, more than half of all the restaurant and bar space there. While the loss of the initiative implies that residents do not believe a mandated reduction in late-night operating hours is the best way necessarily to manage the issue, many also believe the bar scene on Pier Plaza deters visitation from families and upscale tenants. At minimum, Pier Plaza lacks sufficient alternatives to the current slate of boisterous and young adult-oriented establishments.

As noted in the retail assessment, Hermosa Beach experiences leakage in several retail categories, most notably apparel and general merchandise. This corresponds with anecdotal findings from interviewees about the lack of boutiques and women’s apparel shops of the quality found in Downtown Manhattan Beach. Indeed, as shown in Table 11, apparel occupies just 20,000 square feet or 4 percent of Downtown District commercial space. Interviewees acknowledge that while Manhattan Beach retail tenanting has become very upscale, featuring tenants more typically associated with Beverly Hills and South Coast Plaza, there is a strong and unmet opportunity in Hermosa Beach for retailers to operate at a slightly lower price-point.

Conversely, the health and beauty category2 (which includes services ranging from hair and nail salons to gyms and yoga studios) may be over-represented. With almost 52,000 square feet in the Downtown District making up 9 percent of the total commercial area, health and beauty is the largest single retail category. As shown on Figure 8, health and beauty establishments 2 Health and Beauty in this analysis is considered a retail category subset.

Geographic Area FY19-20 1-Yr Change Share
PCH $938,320 -7% 48.4%
Downtown $648,316 -22% 33.4%
Pier/Valley/Monterey $265,014 -8% 13.7%
Aviation $86,840 1% 4.5%
Source: HDL/City of Hermosa Beach, Economic & Planning Systems, Inc. 1026
Market and Economic Analysis Update
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Economic & Planning Systems, Inc. 25 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx cluster on upper Pier Avenue and along the eastern side of Hermosa Avenue. Health and beauty uses are typically found in neighborhood retail centers rather than shopping districts, so their concentration may be impeding development of a stronger specialty retail orientation for the Downtown District.

Downtown retail property and leasing management reflects a wide range of sophistication. While the average Downtown rent of $3.53 per square foot, actual rents—according to brokers—vary widely, from below $2 per square foot to above $6. This results in an inconsistent tenant mix with many non-competitive operators. The inconsistencies are attributable to a number of nonresidents, non-professional, long-term custodial land owners who operate their properties without close regard to market rates. As shown on Table 14, private land owners who have owned since before 2003 control 34 percent of the Downtown land area. Furthermore, fragmented land ownership, resulting in a large number of land owners, makes coordinated action difficult. Fully 63 percent of the Downtown land area is held by owners who control less than three parcels, and parcels themselves are small in size.

The Pier Avenue Streetscape project made vast improvements to the livability and walkability of Pier Avenue, but according to interviewees, there are still too few places for pedestrians and shoppers to congregate, sit, and enjoy the surroundings. In general, there is a lack of outdoor seating in the area, and the design of Pier Plaza can feel barren at less crowded times. This detracts from Downtown’s sense of place and ability to attract day-time visitors.

O p p o r t u n i t i e s
Several strategies are available to the City to realize its goal of promoting economic development in Hermosa Beach, as well as commercial districts along PCH and Aviation Boulevard. Most of these are opportunistic in nature, as they ultimately rely on market-driven change led by the private sector.

Land ownership and usage patterns in Downtown Hermosa Beach have undergone a significant amount of transition in recent years. Since 2010, 24 percent of the Downtown land has changed hands, as shown in Table 14. This activity is attributable to several driving factors: the end of the recession; the continued in-migration of wealthy residents to Hermosa Beach and the Beach in general; growth of high-paying jobs to Hermosa Beach and the Beach Cities; and public investment into streetscape improvements on Pier Avenue.

The proposed Pier/Strand Hotel at the Mermaid site hotel represent a great opportunity to catalyze change in Pier Plaza, combining strong underlying market factors with a strategic location. The site is one of the best commercial locations on the entire Strand between Redondo Beach and Manhattan Beach due to its frontage on both Pier Plaza and the Strand. The costly land assembly reflects confidence in the market to support luxury hotel rates. The site dominates the northwestern corner of Pier Plaza, so new construction will strongly influence its look and feel going forward. With very few alternatives for upscale or luxury beachfront hotels in Los Angeles County, the proposed Mermaid site hotel could become—like Shutters and Casa del Mar in Santa Monica and Terranea in Palos Verdes—a landmark destination drawing visitors from all over the country. Inclusion of ground floor public space, such as a lobby bar, could provide an amenity for locals and day visitors as well as guests, providing an upscale alternative to current Pier Plaza bars and restaurants. This, in turn, could influence tenanting decisions by Pier Plaza land owners 1027
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Economic & Planning Systems, Inc. 26 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx and lead to a diversification of current uses. Finally, the economic impacts from spending by affluent guests and the fiscal impacts from new Transient Occupancy Tax (TOT) and sales tax could be very significant. City support for a top-quality hotel on the site thus presents a highleverage opportunity to effect positive change. One proactive idea would be for the City to consider leveraging its ownership of the parking lot on 13th Street east of the hotel site to enhance hotel feasibility. Use of the parcel to expand the hotel footprint—rather than for a parking structure—could allow inclusion of more amenities, enhancing its appeal to guests and the community at large. The requirement for on-site, underground parking on this site, likely contributed to the project to be deemed infeasible and shelved. Finding alternatives to on-site parking may allow a similar project to go forward.

Similarly, the City should look to encourage and support other catalytic projects Citywide as they materialize. Likewise, projects on the strategically located eastern corners of Pier Plaza currently occupied by Bank of America and Citibank, could also have a catalytic effect (although retail banks are typically long-term land users).

The compact and walkable nature of Downtown Hermosa Beach lends itself to a district parking strategy that encourages visitors to park centrally and circulate on foot. Consequently, provision of centralized public and public-private parking solutions could increase pedestrian traffic and enhance retail vitality. In addition, the option for developers to provide parking through in-lieu fees, as is already offered by the City, can help some physically constrained sites become more viable for new development. However, the current in-lieu fee which is roughly equivalent to the per-stall development cost in a parking structure, and the requirement for some on-site parking, are considered restrictive by many local land use professionals, especially given high current parking requirements mandated by city code for commercial uses, restaurants in particular. The City can ease the burden on developers by lowering in-lieu fees, by removing requirements for providing a portion of the parking requirements on-site and by lowering parking requirements outright.3 There is strong potential for the City to offset these costs with increases in sales tax, business license tax, TOT, and other taxes associated with new commercial activity.

Streetscape improvements on Hermosa Avenue and enhancements on Pier Plaza could help the area more fully realize the potential of its natural physical advantages to become a more attractive destination for day-time visitors, families, and tourists. Such improvements could enhance the sense of arrival, calm traffic, upgrade the pedestrian experience, facilitate bicycle transport, and refine the overall identity of the area. This could help create a “virtuous circle” that attracts more visitors, who increase the market potential for new tenants, who in turn draw more visitors. For example, focused improvements on the eastern side of Hermosa Avenue that encourage a more vibrant street life can help bring out the redevelopment potential represented by relatively large parcels and floorplates, frontage that defines (and extends) the edge of the Pier Plaza activity, and traffic counts consistent with the location at the nexus of the Downtown 1028
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Report June 1, 2021
Economic & Planning Systems, Inc. 27 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx District. Furthermore, such improvements can help improve circulation between Upper Pier Avenue and Pier Plaza and facilitate a stronger commercial flow between the two areas.4 In the commercial centers along Aviation Blvd. and PCH, there is also the opportunity to improve the streetscape and pedestrian infrastructure in order to enhance their respective retail environments. It was noted that Aviation Blvd. in particular would benefit from beautification and traffic-calming measures. These commercial centers present especially attractive opportunities for investment, given their location along main arterials. This lends them a higher degree of accessibility to those living inland in Hermosa Beach, as well as residents from surrounding communities. In terms of the potential for additional retail offerings in these areas, the retail leakage statistics discussed in Chapter 5 suggest that establishments offering apparel, general goods, and garden shops have the potential to capture a market that currently shops for these items outside of Hermosa Beach.

As previously discussed, Hermosa Beach is predominantly a bedroom community with a relatively small day population. In this regard, Hermosa is at a competitive disadvantage to Manhattan Beach, which has a much larger day population, especially for higher quality restaurants that depend in part on lunch business. Nonetheless, continued growth of office space for knowledge workers in the Downtown area, whether as part of single- or mixed-use developments, can create a greater workday buzz and stimulate restaurant and retail development directly. Additionally, the trend toward working from home spurred by the Covid19 pandemic is likely to persist, and will improve spending and vitality downtown.

C o n c l u s i o n s
Realization of any of these opportunities could yield economic growth and help positively transition the Downtown Core. However, it will take a combination of actions over time by both public and private sectors before a full retail transformation will take place, coupled with a refreshed perception of the Downtown Core as a great place to visit and hang out by day, by night, and for a broad range of users including tourists, locals, and families.

With regard to business districts elsewhere in the City, Aviation Blvd. and PCH are established as commercial nodes with robust retail environments. PCH in particular generates nearly half the City’s sales tax. However, key stakeholders have noted that both corridors could benefit from visual and infrastructural improvements in order to attract higher numbers of potential customers. This is especially the case on Aviation Blvd., which is viewed as having a greater potential to cater to pedestrians but will require a higher amount of investment in the built environment. Furthermore, despite representing some of the City’s most popular businesses, business owners in these districts feel there is a disproportionate amount of attention paid to Pier Ave. and the Downtown area.
4 For a full set of streetscape improvement recommendations, see “Hermosa Beach Downtown Economic Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group and Economic & Planning Systems, 12/2013
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Market and Economic Analysis Update
City of Hermosa Beach
Report June 1, 2021
Economic & Planning Systems, Inc. 28 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Catalytic projects like new hotels, with or without the continued office development, will increase day population and demand for upscale retail and services. Public support through district parking strategies, reduced parking requirements, and possibly the provision of subsidized parking can help underwrite a desirable range of new development and rehab projects.

Additional changes to the built environment through streetscape improvements can upgrade the “sense of place” and make the City’s commercial districts more desirable destinations for both residents and visitors. Under these improved conditions, retailers will seek to exploit the new market opportunity. And because retailers tend to follow other retailers, successful early movers will quickly be joined.

Certain categories of retail in particular could be a strong fit for a revitalized Downtown, and the PCH and Aviation Corridors. As discussed earlier, women’s apparel is an area of opportunity, along with athletic clothing and sports gear. Home furnishing stores are underrepresented in the city as well. Better restaurants as well as cafes that encourage gathering and lingering would broaden Hermosa Beach’s reputation as an entertainment destination and address residents’ stated desire for more options. Ultimately, once a certain critical mass of change has occurred, anchor retailers could be attracted to become a focal point for the City’s commercial districts. 1030
Market and Economic Analysis Update
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Report June 1, 2021
Economic & Planning Systems, Inc. 29 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Table 11 Downtown District by Land Use
Vertical
Sq.Ft.(3)
Share Vertical
Sq.Ft.(3)
Share Vertical
Sq.Ft.(3)
Share
Retail and Services
Eating and Drinking(4)
Food/Spirits Extended Hours 51,191 9% 47,773 9% 3,419 1% Food/Spirits Closes at Midnight 27,379 5% 17,236 3% 10,143 2% Food/Beer & Wine 10,084 2% 4,872 1% 5,212 1%
Food/No Alcohol 25,823 5% 19,248 3% 6,575 1%
Subtotal Eating and Drinking 114,478 20% 89,128 16% 25,350 5% Other Retail and Services
Health & Beauty 51,624 9% 23,588 4% 28,035 5%
Sports 22,100 4% 10,797 2% 11,303 2%
Apparel 20,426 4% 12,326 2% 8,100 1%
Souvenirs & Gifts 19,897 4% 1,552 0% 18,345 3%
Bank 11,314 2% 11,314 2% - 0%
Liquor 4,445 1% 2,820 1% 1,625 0%
Market 3,720 1% 2,560 0% 1,160 0%
Wine Shop 2,763 0% - 0% 2,763 0%
Subtotal Other Retail and Services 136,290 24% 64,958 12% 71,332 13% Total Retail and Services 250,767 45% 154,086 27% 96,681 17% Other Commercial
Professional Office 141,938 25% 29,514 5% 112,424 20%
Hotel 90,237 16% 81,269 14% 8,968 2%
Vacant 39,080 7% 29,767 5% 9,313 2%
Residential 36,351 6% 12,963 2% 23,388 4%
Industrial 3,476 1% - 0% 3,476 1%
Subtotal Other Commercial 311,082 55% 153,514 27% 157,568 28% TOTAL 561,849 100% 307,599 55% 254,250 45%
(1) Rectangle formed by the Strand, eastern Hermosa Avenue, 14th Street, and 10th Street (2) Pier Avenue from Hermosa Ave. to Valley Dr.; Strand to Hermosa Ave. between 14th St. and 16th Ct., 10th St. and 8th St. (3) Vertical Sq.Ft. from CoStar and EPS estimates, except as described in footnote (4) (4) Eating and drinking sub-classifications based on City of Hermosa Beach CUPs Sources: The City of Hermosa Beach, CoStar, Economic & Planning Systems Downtown District Core Downtown
District (1)
Non-Core Downtown
District (2)
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Economic & Planning Systems, Inc. 30 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Figure 6 Downtown Hermosa Beach by Land Use
Notes:
(1) Categories designated “Multiple Tenant Retail” include tenants from all eating and drinking categories as well as from the apparel, sports, souvenirs & gifts, health and beauty, and professional office categories (2) Categories designated “Office Over Retail” include professional office as well as uses in health and beauty, apparel, Food/no alcohol, and banking.
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Market and Economic Analysis Update
City of Hermosa Beach
Report June 1, 2021
Economic & Planning Systems, Inc. 31 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Table 12 Downtown Hermosa Beach by Ownership Pattern
Table 13 Downtown Hermosa Beach by Acquisition and Construction Activity Land Owner
MP Core 200 930,952 53 23.8%
City of Hermosa Beach 396,260 16 10.1%
Reg8 Plaza Hermosa LLC 246,712 7 6.3%
Melvin and Marie Kausen Trust 108,070 7 2.8%
Resort Sea View Hermosa LLC 96,148 6 2.5%
Daniel and Margaret Gruen Trust 74,379 5 1.9%
Iskandar Family Trust 62,458 5 1.6%
Frederic and Jean Taylor Trust 50,536 3 1.3%
Moise Hendeles Trust 48,074 3 1.2%
S and P Hermosa Parent LLC 33,947 7 0.9%
South Bay 4 LLC 17,028 6 0.4%
Damoder and Sumitri Reddy Trust 13,356 4 0.3%
John and Laura Warren Trust 12,023 3 0.3%
Refoua LLC 9,606 3 0.2%
Celina C Douglas Trust 8,486 3 0.2%
All Other Owners 1,802,463 177 46.1%
Total 3,910,500 308 100%
Sources: City of Hermosa Beach; Los Angeles County Assessor; EPS Square Footage Number of
Parcels Owned
Share
AC Sq.Ft. Share AC Sq.Ft. Share AC Sq.Ft. Share
Recent Construction(3) 0.7 31,229 4% 0.9 40,024 5% 1.6 71,253 9% Acquired After 2010 1.5 63,223 8% 2.5 107,341 13% 3.9 170,563 21% Acquired between 2004 and 2010 2.7 117,792 15% 1.9 84,111 10% 4.6 201,903 25% Acquired between 1993 and 2003 1.7 75,460 9% 1.8 77,511 10% 3.5 152,971 19% Acquired Before 1993 0.9 38,407 5% 0.7 32,359 4% 1.6 70,766 9% City-Owned Land 1.9 82,752 10% 1.1 48,353 6% 3.0 131,105 16% Transaction Data Not Available - - 0% 0.1 5,876 1% 0.1 5,876 1% Total 9.4 408,863 51% 9.1 395,574 49% 18.5 804,438 100% (1) Rectangle formed by the Strand, Hermosa Avenue, 14th Street, and 10th Street Sources: The City of Hermosa Beach; CoStar; Economic & Planning Systems, Inc. (3) "Recent Construction" refers to projects with long remaining usable life; these date from 1998 (Beach House Hotel) to 2013 (205 Pier Ave.)
Category Core Downtown(1) Other Downtown(2) Total Downtown (2) Pier Avenue from Hermosa Ave. to Valley Dr.; the Strand to Hermosa Ave. between 14th St. and 16th Ct. and between 10th St. and 8th St.
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APPENDIX A:

Business Community Input
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• Business Community Interviewees:
o Jessica Accamando – Hermosa One / Creative Fish
o Marje Bennetts – Beach House Hotel
o Tony Cordi – The Innate Group
o Jason Cortes – The Stanton
o Jon David – Upper Pier Ave. Property Owner
o Lori Ford – Gum Tree
o Ed Hart – Maximus Salon
o Bob Jones – Financial Consultant
o Mike Lacey – Comedy and Magic Club
o Jason Muller – Beach City Capital
o Jon Starr - Starr Design
• Review of Economic Development Stakeholders Advisory Group Notes July 2020 through March 2021
• Feedback received from Economic Development Committee Meeting held March 1, 2021
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APPENDIX B
2014 Report Key Findings
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1. The Hermosa Beach Downtown District is the commercial heart of the City—at once the City’s primary shopping district, gathering area, and visitor attraction.

With approximately 18.5 acres of commercially zoned land on either side of Pier Avenue between the Strand and Valley Boulevard and along Hermosa Avenue between 8th Street and 15th Street, the Hermosa Beach Downtown District hosts a majority of the City’s retail outlets and a large proportion of its hotel and office uses. Pier Plaza, with its large assortment of bars and restaurants, is a popular nightlife destination for visitors from throughout the County. Sales tax revenues from Downtown Hermosa Beach are significant, accounting for 29 percent of all sales tax revenue collected by the City.

2. Hermosa Beach enjoys unique physical qualities that make it a highly desired destination for residents and visitors
Clean air, the broad and sandy beach, and the ocean beyond provide Hermosa Beach with its defining amenity. But unlike Manhattan Beach, Redondo Beach, or most of the other beach cities in Los Angeles County, Hermosa Beach has commercially zoned parcels that directly about the beach at grade. This gives Downtown Hermosa Beach, and Pier Plaza in particular, an intimate relationship with the beachfront that creates potential for highly differentiated hotel and retail offerings. Furthermore, Pier Avenue meets Pier Plaza after a dramatic sweeping quarter-mile descent from Pacific Coast Highway, providing a pleasing pedestrian experience and numerous focal points for commercial activity.

3. The three Beach Cities of Hermosa Beach, Manhattan Beach, and Redondo Beach share geographical proximity and demographic characteristics to function as closely inter-related markets. Consequently, area economic trends, especially those originating from Manhattan Beach, are expected to continue to influence Hermosa Beach.

Each of the three Beach Cities has benefited from the highly desired beach location to become an attractive place to live, work, and play. Compared to the city of Los Angeles, all are affluent, well-educated, and carry high property values—extremely high in the case of Manhattan Beach. Hermosa Beach is differentiated by being the smallest and most casual of the three, with the youngest residents, highest proportion of renters, lowest rate of family formation, and second-highest level of income. However, due to rapidly appreciating land costs in Manhattan Beach, Hermosa Beach has begun to absorb spill-over residential demand, which land use professionals believe will narrow the wealth gap with Manhattan Beach, reflect in increased home ownership levels, and lead to increased family representation.

4. Despite its location and demographic advantages, the Downtown Core has not fulfilled its potential as a commercial district for residents and visitors, according to area land use professionals.

Pier Plaza’s bars and restaurants host a boisterous nightlife scene that has increasingly generated conflict with neighborhood residents. According to local brokers and real estate professionals, the current Pier Plaza tenant mix has tended to discourage a broader range of retail and commercial activities. In turn, the lack of diversity in dining and shopping options has helped perpetuate the dominance of current uses. However, the decisive loss of the 1037
Market and Economic Analysis
Hermosa Beach Downtown Strategy
Administrative Draft Report — Appendix 1/13/2014
Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx proposed Measure B “Quiet Nights” ballot initiative implies that residents do not believe a mandated reduction in late-night operating hours is necessarily the best way to manage the issue. Other long-term impediments to the realization of Downtown Core potential include legacy property ownership, which has resulted in inconsistent property management and tenanting; restrictive requirements for the provision of new parking, which have encumbered new development; and a small day-time population (excluding summer weekend beachgoers), which limits potential day-time retail demand.

5. Land ownership and usage patterns in the Hermosa Beach Downtown District have undergone a significant amount of organic, market-driven transition in recent years providing momentum for further public and private investment.

For many years, land ownership in Downtown Hermosa Beach was dominated by long-term custodial land owners, which led to a generally slow pace of change. However, since 2010, 24 percent of the Downtown District land has changed hands, 18,000 square feet of new construction has occurred, and hotels proposing over 130 new rooms are in planning or under development. This activity is attributable to several driving factors: the end of the recession; the continued in-migration of wealthy residents to Hermosa Beach and the Beach Cities in general; growth in the number of high-paying jobs in Hermosa Beach and the Beach Cities; and public investment in streetscape improvements on Upper Pier Avenue. This primarily market-driven momentum for change provides a strong basis for successful revitalization strategies.

6. New hotel development in Downtown Hermosa Beach, in particular the proposed hotel for the former Mermaid site, represents the biggest opportunity for near-term transformation of Pier Plaza.

The proposed Mermaid site hotel represents a rare opportunity to catalyze change in Pier Plaza, combining strong market factors with a strategic location. The site is one of the best commercial locations on the entire Strand between Redondo Beach and Manhattan Beach, due to its frontage on both Pier Plaza and the Strand. The assembly of land, acquired in 2013 at very high cost, reflects confidence in the market to support luxury hotel rates. Because the site dominates the northwestern corner of Pier Plaza, new construction will strongly influence its look and feel going forward. With very few alternatives of upscale or luxury beachfront hotels in Los Angeles County, the proposed Mermaid site hotel could become—like Shutters and Casa del Mar in Santa Monica and Terranea in Palos Verdes—a landmark destination drawing visitors from all over the country. Inclusion of ground floor public space, such as a lobby bar, could provide an amenity for locals and day visitors as well as guests, providing an upscale alternative to current Pier Plaza bars and restaurants. This, in turn, could influence tenanting decisions by Pier Plaza land owners and lead to a diversification of current uses.

Finally, the economic impacts from spending by affluent guests and the fiscal impacts from new Transient Occupancy Tax (TOT) and sales tax could be very significant. City support for a top-quality hotel on the site presents a high-leverage opportunity to effect positive change. 1038
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7. Retail revitalization and diversification in the Hermosa Beach Downtown District will likely occur gradually as a result of improvements in several underlying conditions.

Despite its high population density and affluence, Downtown Hermosa Beach has not fulfilled its potential due to factors discussed above. Consequently, the quality and diversity of many existing retail establishments is not on par with expectations of residents or potential visitors from other Beach Cities. For example, the current retail tenant mix along Pier Avenue and Hermosa Avenue appears to be over-represented in the health and beauty sector (uses more typical of a neighborhood center than a retail shopping district), and under-represented in the apparel sector, where the City exhibits significant retail leakage. Actions that increase the day-time population or create interest in the Downtown District as a day-time destination can create positive conditions that induce retail development over time. These actions may include hotel and office development, which increases the day-time population; streetscape improvements to create a better and more attractive sense of place; and public parking improvements that reduce impediments to visitation and offset the costs of new development.

8. Development of office space catering to knowledge-work sectors such as finance, real estate, and professional services, represents a meaningful opportunity for Downtown District economic development.

The office market in the City of Hermosa Beach is not as large as that in Manhattan Beach and Redondo Beach, but in the Downtown District, high rents, low vacancies, and a growing cluster of knowledge workers suggests market support for new office space there. Since 2000, over 60 percent of new office growth in the city has occurred in the Downtown District, specifically at 200 Pier Avenue, 205 Pier Avenue, 338 Pier Avenue, and 400 Pier Avenue, buildings that cater to tenants in knowledge work fields such as finance, real estate, and information. This reflects a larger trend in which knowledge workers, who can work anywhere with a network connection, are choosing workplaces closer to home in areas offering a high quality of life. Area brokers believe this trend represents a strong and continuing opportunity for the Beach Cities. One positive consequence of new Downtown office growth is increased day-time population, which generates additional demand for retail and services.

9. Provision of public shared centralized parking may help encourage catalytic projects in the Downtown Core
The compact and walkable nature of Downtown Hermosa Beach lends itself to a district parking strategy that encourages visitors to park centrally and circulate on foot.

Consequently, provision of centralized public and public-private parking solutions could increase pedestrian traffic and enhance retail vitality. In addition, the option for developers to provide some required parking through in-lieu fees, as is already offered by the City, can help some physically constrained sites become more viable for new development. However, the current in-lieu fee, which is roughly equivalent to the per-stall development cost in a parking structure, is considered restrictive by many local land use professionals, especially given high current parking requirements mandated by city code for commercial uses, in particular restaurants. The City can ease the burden on developers by lowering in-lieu fees 1039
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Economic & Planning Systems, Inc. A-4 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx and by lowering parking requirements outright.5 There is strong potential for the City to offset the associated loss of revenue with increases in sales tax, business license tax, TOT, and other taxes associated with new commercial activity.

10.Public investment in streetscape improvement is a strong tool for the City to encourage catalytic projects.

Streetscape improvements on Hermosa Avenue and Pier Plaza could help the area more fully realize the potential of its natural physical advantages to become a more attractive destination for day-time visitors, families, and tourists. Such improvements could enhance the sense of arrival, calm traffic, upgrade the pedestrian experience, facilitate bicycle transport, and refresh and update the image of the area. This could help create a “virtuous circle” that attracts more visitors, who increase the market potential for new tenants, who in turn draw more visitors. For example, focused improvements on the eastern side of Hermosa Avenue that encourage a more vibrant street life can help bring out the redevelopment potential represented by relatively large parcels and floorplates, frontage that defines (and extends) the edge of the Pier Plaza activity, and traffic counts consistent with the location at the nexus of the Downtown District. Furthermore, such improvements can help improve circulation between Upper Pier Avenue and Pier Plaza and facilitate a stronger commercial flow between the two areas.6
5 For a full set of parking strategy recommendations, see “Hermosa Beach Downtown Economic Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group and Economic & Planning Systems, 12/2013
6 For a full set of streetscape improvement recommendations, see “Hermosa Beach Downtown Economic Development Strategy,” Prepared for the City of Hermosa Beach by ROMA Design Group and Economic & Planning Systems, 12/2013
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Market and Economic Analysis
Hermosa Beach Downtown Strategy
Administrative Draft Report — Appendix 1/13/2014
Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx

APPENDIX C
Supporting Data
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Market and Economic Analysis
Hermosa Beach Downtown Strategy
Administrative Draft Report — Appendix 1/13/2014
Economic & Planning Systems, Inc. A-2 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Appendix 1 Hermosa Beach Fiscal Revenues, FY10-11 to FY19-20 0 5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
35,000,000
40,000,000
45,000,000
FY10-11 FY11-12 FY12-13 FY13-14 FY14-15 FY15-16 FY16-17 FY17-18 FY18-19 FY19-20 Property Tax Sales and Use Tax Transient Occupancy Tax
Business License Tax Utility Users Tax Other Taxes
Licenses and Permits Fines and Forfeitures Use of Property and Money Intergovernmental/State Service Charges Other Revenue
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Market and Economic Analysis
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Administrative Draft Report — Appendix 1/13/2014
Economic & Planning Systems, Inc. A-3 Z:\Shared\Projects\LA\204000s\204026_Hermosa Beach Economic and Market Analysis\Report\EPS Updated Economic and Market Study_City Edits.docx Appendix 2 Hermosa Beach Fiscal Revenues, FY19-20 Detail Revenue Source Category FY19-20 Share
Property Tax $19,045,242 44.6%
Sales and Use Tax $3,146,342 7.4%
Transient Occupancy Tax $3,505,250 8.2%
Business License Tax $1,184,426 2.8%
Utility Users Tax $2,147,057 5.0%
Other Taxes $1,252,169 2.9%
Licenses and Permits $1,213,724 2.8%
Fines and Forfeitures $2,365,086 5.5%
Use of Property and Money $1,006,122 2.4%
Intergovernmental/State $127,256 0.3%
Service Charges $7,523,765 17.6%
Other Revenue $165,416 0.4%
Total $42,681,855 100.0%
Sources: City of Hermosa Beach; EPS
1043

STRATEGIC ACTION OBJECTIVE STAFF

AVAILABILITY

BUILD OUT COST
(Preliminary
Estimates)

TOTAL COST
(Preliminary
Estimates)

COMPLETED

CITYWIDE BEAUTIFICATION
1 Wayfinding Signs
Inform and direct visitors from
PCH, Aviation and Artesia to beach,
pier, parking, business districts and
add to sense of place. Includes
downtown wayfinding and
gateway signage
Limited PW, CD, CMO*, 595
hours for CIP $ 104,640
CIP 111 –
Gateway and
Wayfinding
Signs in
process.
$ 150,000 $ 600,000 $ 854,640
$ 59,394
2 Façade Improvement Program for
commercial districts.

Private property investment to
improve appearance of older
buildings in need of refreshed
exteriors.

No
CD–240 hours for
two years–160 hrs
1st yr.,80 2nd yr
$ 36,000 Architect on
retainer $ 50,000 $ 250,000 $ 336,000
3 Beautification Program, including
gateway entries and corridors
Improve community quality of life,
sense of pride and City image,
improve appearance of all areas of
Hermosa Beach.

Limited CD, PW, CMO,
Chamber–120 hours $ 18,000
CIP 111 –
Gateway and
Wayfinding
Signs in
process.
$ 18,000
4 Beautification Awards Celebrate and encourage
improvements. Limited
Mayor’s Award or
Chamber event–40
hours to plan/staff
$ 6,000 $ 10,000 $ 16,000
5 Consider Arts in Public Places
Program - AIPP would require
public art as part of major
commercial developments as part
of citywide beautification.

Improve public areas appearance
to enhance community quality of
life and City image and attract
visitors.

No
Staff time with arts
community, public
input, ordinance to
CC
$ 30,000 Consultant for
Program $ 35,000 $ 65,000
6 Placemaking Community Forum,
including City Council, Planning
Commission and Parks, Recreation
and Community Resources Advisory
Commission.

Consider Placemaking principles as
decision making tool for staff and
commissions.

No Staff time–60 hours $ 9,000 $ 9,000
7 Placemaking Projects Design. The
City to include community through
public engagement.

Community involvement in design
ensures area will be enjoyed,
promotes local pride and quality of
life.

No 20 hours Per project
/ 2x per year. $ 6,000 Design
Consultant $ 30,000 $ 36,000
8 Include Beautification related
projects in the City budget and CIP
to add value and for residents and
visitors to enjoy.

Investment in the public realm
improves community quality of life
and welcomes visitors.

Limited PW Staff time–240
hours $ 36,000 Consultant Support $ 150,000 $ 186,000

DOWNTOWN
9 Work with Business Community to
Explore Formation of Business
Improvement District (BID)
Facilitate BID if desired by
Downtown property owners and
businesses. A BID can fund
activities beyond City services
identified by property owners
and/or businesses.

Limited CD, CMO, Chamber
60 hours $ 9,000
BID
Consultant
(with 1 $5K
intro)
$ 20,000 $ 5,000 $ 34,000
$ 14,000
10 Focused Update of Downtown
Revitalization Strategy, including
Preservation of Downtown Retail
and Restaurants and other active
uses on 1st floor
Review document to determine
what needs to be completed or
added. Economic market study
completed in 2021 can inform
updated Downtown Revitalization
Strategy.

Limited CD, PW, CMO, 60
hours Consultant $ 9,000 Economic
Consultant $ 120,000 $ 129,000
11 Develop Identity/Vision for the
Downtown
Incorporate City brand with
marketing and future
improvements.

Yes CMO, CD PW, 80
hours $ 12,000 $ 12,000
$ 12,000
12 Introduce and Facilitate Downtown
Experiences (activate public spaces,
add interest for residents and
visitors)
Enhance the special sense of place
Downtown to add vibrancy and
attract new business interest and
investment.

Limited

CMO, CR, CD,
PW,Chamber 80
hours
$ 12,000 Events
Vendors $ 25,000 $ 37,000
Economic Development Strategy Costs–Preliminary & In Process STAFF COST (Preliminary
Estimates)

CONSULTANT COST
(Preliminary Estimates)
CIP 111 is currently only funded to cover preliminary design to complete inventory, preliminary design and locations, and develop a cost estimate for design and construction. Those costs are TBD subject to finalizing scope of work and roughly estaimted to cost $120,000 for design and $400,000 to $1M - largely dependant on scope of work with the higher costs as a result of the gateway signs and a marquee sign at community center. Completed includes cost spent on consultant but excludes staff time.

DRAFT
1044

STRATEGIC ACTION OBJECTIVE STAFF

AVAILABILITY

BUILD OUT COST
(Preliminary
Estimates)

TOTAL COST
(Preliminary
Estimates)
COMPLETED STAFF COST (Preliminary
Estimates)

CONSULTANT COST
(Preliminary Estimates)
13 Comprehensive Downtown lighting
evaluation with complete
photometric study, design and
installation. This requires a new CIP
request for funding, community
input for desired lighting, and
public review.

Lighting plan for Downtown with
overall vision to create safe and
welcoming atmosphere. CIP 621 –
Comprehensive Downtown lighting
evaluation with complete
photometric study, design and
installation in process.

Limited PW CIP Hours 1,290
(Consultant) $ 234,020 Lighting
Consultant $ 350,000 $ 1,500,000 $ 2,084,020
$ 1,000
14 Permanently Allow Outdoor Dining
Areas and Lane Reconfigurations
To add vibrancy of public and
private outdoor spaces, enhance
sense of place and continue to
offer outdoor options safely and
comfortably. To move traffic at
safer speeds and encourage all
mobility options.

Completed
CD, PW, CMO - For
permanent program
Staff time 1,000
hours
$ 150,000 CEQA
Consultant $ 49,600 $ 199,600
$ 199,600
Traffic and
Parking
Consultant
$ 88,000 $ 88,000
$ 88,000
MUNICIPAL CODE AMENDMENTS $ -
15 Long Term Allowance of Outdoor
Music in Business Locations
Allow temporary outdoor music to
become permanent to attract
customers, add vitality and provide
unique Hermosa Beach
atmosphere.

Limited CD, PW 80
hours $ 12,000 $ 12,000
16 Program to Allow Outdoor Music in
Public Spaces
Add vibrancy and sense of place to
enhance Downtown No CD, CMO, PD, Chamber–80 hours $ 12,000 Noise Consultant $ 25,000 $ 37,000 17 Regular Communication with Key
Property Owners to Encourage
Reinvestment and Provide Support
as Needed
Meet with property owners of
prime commercial sites to discuss
status and opportunities.

Yes
CD, CMO, CC rep.,
Chamber 60
hours
$ 9,000 $ 9,000
18 Develop Business Visitation
Program
Build relationships with businesses,
understand and better meet needs. Yes 60 hours $ 9,000 $ 9,000 19 Annual Commercial Property
Owner and Brokers Forum
Create opportunity to
communicate with property
owners and brokers to share
project updates, City updates and
real estate trends
Limited

CD, CMO, CC,
Chamber 40
hours
$ 6,000 $ 7,500 $ 13,500

CITY ECONOMIC DEVELOPMENT
WORK PROGRAM $ -
20 Retail Attraction Program for
Competitive, Strengthened Retail
Help recruit new businesses to
reduce vacancies, increase foot
traffic and strengthen local
economy.

No CD, CMO hours 80
hours $ 12,000 Consultant $ 50,000 $ 62,000
21 Partnership with Chamber of
Commerce to enhance Visitors
Bureau to develop and promote the
Hermosa Beach brand and provide
visitor resources.

Promote Hermosa Beach as an
overnight destination. Limited CD, CMO, Chamber 10 hours $ 1,500 $ 1,500 22 Periodic Community Survey to
Determine What Types of Shops or
Goods are Desired and Residents
Drive Out of Town to Patronize
Survey information to identify gaps
in services or goods provided for
business attraction. Survey
information is helpful tool in
business recruitment since
community seeks certain types of
business and shows market
demand.

No CMO / CD 40
hours $ 6,000
Professional
survey
company
$ 10,000 $ 16,000
23 Shop Local Program
Encourage residents to support
local businesses year-round to
retain and grow businesses and
strengthen local economy.

Yes CD, CMO, Chamber $ 9,000 $ 9,000
CIP 621 is currently only funded to cover preliminary design to evaluate existing lighting levels and electrical components, conduct outreach to determine full scope of the project, develop concepts, and then create a cost estimate for design and construction.

Those costs are very TBD subject to finalizing scope of work and roughly estaimted to cost $200,000 for final design and $1 to $3M for new lighting -- this is largely dependant on scope of work with higher costs needed for enhanced sidewalk and intersection lighting (installing new poles and conduit is expensive). Completed cost is staff time related to scoping and CIP program updates.

DRAFT
1045

STRATEGIC ACTION OBJECTIVE STAFF

AVAILABILITY

BUILD OUT COST
(Preliminary
Estimates)

TOTAL COST
(Preliminary
Estimates)
COMPLETED STAFF COST (Preliminary
Estimates)

CONSULTANT COST
(Preliminary Estimates)
24 Explore Music Events and Activities
to Celebrate Hermosa Beach Music
History and Provide Musical
Experiences for Community and
Visitors
Celebrate unique local musical
heritage for community pride and
to distinguish Hermosa Beach to
visitors (DOES NOT INCLUDE

EVENTS)
Limited
Historical Society
and Museum,
Chamber, CR< CD,
GIS
$ 6,000 $ 6,000
25 Provide Hermosa Beach business
information to event promoters to
encourage use of local vendors and
distribution to participants.

Gain additional business support
from day visitors attending events. Yes Chamber, CR, CD, GIS, $ 9,000 $ 9,000 26 Development Assistance
Committee/Development Review
Committee
Provide early feedback/info to
developers Yes CD, PW, PD, Fire as needed $ 9,000 $ 9,000 27 Provide customer service training to
all City staff to build on culture of
excellent customer service.

Provide highest quality service to
residents and businesses. Yes CMO, HR $ 1,500 $ 1,500
28 Continuous improvements to
streamline processes and reduce
approval times for permit
processes.

Provide certainty and reduce
approval times through
efficiencies.

Yes CD 80
hours $ 5,240 $ 5,240
29 Continue staff member assigned as
Business Liaison
Point of contact to assist new and
expanding businesses. Yes 150 hours $ 22,500 $ 22,500
30 Regular City Council Review Continue citywide Economic Development program. Yes All-Depts 80 hours per year $ 12,000 $ 12,000 Adjustments
(Completed) $ 4,338,500 $ 373,994
$ 3,964,506
DRAFT
1046
DRAFT Lighting and Signage Project ROM Costs
Admin
Hours
PM
Hours
SE Hours CE Hours
Dir.

Hours
Subtotal - Staff
Time
Consultant
Fee(s)
Construction
Estimate - low
Construction
Estimate - high
Total - Low Total - High
CIP 111 Gateway and Wayfinding
Signs Assessment
20 80 40 10 5 26,880.00 $ $ 20,000.00 $ - $ 46,880.00 - $ $ 46,880.00 Gateway and Wayfinding Signs
Design and Installation
40 240 100 40 20 77,760.00 $ $ 100,000.00 $ 400,000.00 $ 1,000,000.00 $ 577,760.00 $ 1,177,760.00 CIP 621 Comprehensive Downtown
Lighting Design
40 250 160 70 30 101,760.00 $ $ 150,000.00 $ - $ 251,760.00 - $ $ 251,760.00 Downtown Lighting Design and
Installation
40 400 200 70 30 132,260.00 $ $ 200,000.00 $ 1,000,000.00 $ 3,000,000.00 $ 1,332,260.00 $ 3,332,260.00 RANGE OF POSSIBLE COSTS $ 2,208,660.00 $ 4,808,660.00
DRAFT
1047
City Council Hybrid Meeting (Closed Session - 5:00 PM and Open Session - 6:00 PM) 02-27-24 17:00
Agenda Name Comments Support Oppose Neutral
d) REPORT 24-0092 ECONOMIC DEVELOPMENT STRATEGY

PROGRESS REPORT
(Community Development Director Carrie Tai)
5 5 0 0
Sentiments for All Agenda Items
The following graphs display sentiments for comments that have location data. Only locations of users who have commented will be shown.

Overall Sentiment
Agenda Item: eComments for d) REPORT 24-0092 ECONOMIC DEVELOPMENT STRATEGY PROGRESS REPORT (Community Development Director Carrie Tai)
Overall Sentiment
Jon David
Location:

Submitted At: 2:59pm 02-27-24
The downtown is the heart of the city. It creates a culture and a sense of place. What would life be like without our downtown? Without all the restaurants and shops, would residential property values go up or down? Would the resident's quality of life be better or worse?
Would residents feel as proud to be Hermosians?
My point is Hermosa needs a strong economic environment if we want a better future for the entire community.

That individual businesses benefit is the side effect, but not the purpose. Hermosa needs to invest in its downtown to protect an important asset. Currently, this asset is very ill and is becoming worse. Many will find reason to disagree, but the numbers tell the truth. Our commercial rents are the lowest of the South Bay downtowns, which is a rather new situation. Our foot traffic is anemic, Sales numbers fail to keep pace with inflation. Most business, but the services businesses, report having really tough times. 1048
There seems to be little clarity as to the cause of this. There is lots of finger-pointing and speculation. Is it a lack of retail? Is it a lack of good restaurants? Is it overregulation pushing away great operators? Etc etc. I have my opinions but this is not enough. We need to finally get clarity as to what is going on and how to reverse it. I highly recommend that the City bring in someone with expertise and focus on economic development, either as an employee or as a consultant.

Laura Pena
Location:

Submitted At: 2:43pm 02-27-24
PART I: I am submitting more than one comment due to character constraints.

Dear Mayor, Council Members, and Staff - As someone who has served in the Advisory Group, I’m very closely aligned with these Economic Development Strategies that our business community worked on with the city for two years. I appreciate Director Tai‘s third Progress Report that has outlined our city's efforts thus far.

These strategics actions were developed with a proactive stance in mind to not only assist in our recovery, but to help realize our economic vision and take control of our economic future. It is evident in this third progress report that we have limited staff resources to fully realize these strategies. As part of the long-term plan, city leadership identified the need for a multi-disciplinary approach to complement our city departments including subject-matter experts. Staff’s recommendation to secure an outside Economic Development Specialist to project manage these strategies is in alignment with this long-term plan to ensure implementation of these strategies. If we can execute these strategies successfully, we should not only be able to measure progress but the city will be able to increase the tax revenue in our downtown that could positively affect the economic well-being of our community and thus, quality of life.

Since the scope of the strategic actions did not take into account allocating the necessary funding or competing staff workload demands, it is not a surprise that sufficient progress towards meeting our first year priorities let alone our second year priorities falls short of meeting expectations. We, as partners with the city would like to work together to provide feedback to improve the outcome and therefore see tangible, measurable results.

It is through this lens that I would impress upon city leadership to review the SWOT (Strengths, Weakness, Opportunity, Threats) Analysis that is integral to its Economic Development success.

What are city’s STRENGTHS?
- Our city leadership has created a pathway for permanency for our Outdoor Dining Deck Program (Strategy #14) as well as working towards allowing Outdoor Music in Business Locations (Strategy #15). We can do the same with a program to allow Outdoor Music in Public Spaces (Strategy #16) that is currently listed as “no funding or staff resources to initiate this item.” What are the needs to create a parallel program in our public spaces? - Our Community Development Department has held at least ten meetings with existing or prospective property owners / representatives to encourage reinvestment through regular communication (Strategy #17). If we already have these existing relationships, the city could benefit from holding an Annual Commercial Property Owners / Brokers Forum (Strategy #19) to engage these stakeholders as a group. We could exchange ideas and gather support for reinvestment on Facade Improvement (Strategy #2), Beautification Program (Strategy #3), Downtown Revitalization (Strategy #10), and a Property / Business Owners BID (Strategy #9). We could learn about potential incentives or disincentives that are affecting reinvestment. According to the progress report, there is “no funding or staffing resources” to have an Annual Forum. What is the cost estimate and/or resources to create this opportunity so we can learn how to improve and encourage investment? PLEASE SEE PART II:

I appreciate your thoughtful consideration.

Laura Pena
Jessica Accamando
1049
Location:

Submitted At: 2:19pm 02-27-24
Mayor and Members of Council,
We at the Chamber would like to thank the City and Director Tai for continuing to work at this long economic development plan. Hopefully it goes without saying that the Chamber deeply values these priorities as identified by the City and the ED process. We have done our best to assist and collaborate on many of these items and we are proud that is reflected on the report before you today. Although we too struggle with funding for these priorities, we regularly try and contribute and/or compliment the efforts.

The exciting addition of a potential Economic Development consultant certainly excites us. We hope that you give this serious consideration. We also hope that Council knows that resources invested in this plan (and a potential person) are well worth the spend for the whole community - residents and businesses alike.

At our walking tour of downtown this week, businesses highlighted way finding ideas and needs as well as a general overview of how business is doing in Hermosa, which for many is not great. We look forward to continued conversations with Carrie and her team (and others at the City) to try and forge through this list and make sure our economic vibrancy stays a priority for all. A thriving business community is critical to achieve a thriving Hermosa community.

Thank you.

Tara McNamaraStabile
Location: 90254
Submitted At: 1:22pm 02-27-24
Hi, thank you for your effort to achieve the agreed upon 30 Economic Development Strategies, designed by the Chamber of Commerce Economic Development Action Committee ("EDAC") to bring more economic vibrancy to Hermosa Beach. The progress made is much appreciated, but this report shows we still have a way to go.

Hermosa business owners are struggling, some down 10% from last year, and foot traffic in Pier Plaza is 12.6% so far this year compared to last according to a recent analysis. Therefore, the EDAC Committee asks that our wise Council members support the Staff recommendation to hire an Economic Development Strategist to help implement the outlined concepts and methods. When our small local businesses are doing well, so is Hermosa.

Thanks -- always appreciate you!
-- Tara McNamara Stabile, EDAC Chair, Hb Chamber of Commerce Rosanna Savone
Location: 90254, Hermosa Beach
Submitted At: 1:15pm 02-27-24
I support the staff recommendation to hire an Economic Development Specialist to project manage our Economic Development Strategies. We need more focus on building up our business community. 1050
February 27, 2024
Dear Mayor, Council Members, and Staff,
As someone who has served in the Advisory Group, I’m very closely aligned with these Economic Development Strategies that our business community worked on with the city for two years. I appreciate Director Tai‘s third Progress Report that has outlined the cities efforts thus far.

These strategics actions were developed with a proactive stance in mind to not only assist in our recovery, but to help realize our economic vision and take control of our economic future. It is evident in this third progress report that we have limited staff as well as not having enough resources to fully realize these strategies. As part of the long-term plan, city leadership identified the need for a multidisciplinary approach to complement our city departments including subject-matter experts. Staff’s recommendation to secure an outside Economic Development Specialist to project manage these strategies is in alignment with this long-term plan to ensure implementation of these strategies. If we can execute these strategies successfully, we should not only be able to measure progress but the city will be able to increase the tax revenue in our downtown that could positively affect the economic wellbeing of our community and thus, quality of life.

Since the scope of the strategic actions did not take into account allocating the necessary funding or competing staff workload demands, it is not a surprise that sufficient progress towards meeting our first year priorities let alone our second year priorities falls short of meeting expectations. We, as partners with the city would like to work together to provide feedback to improve the outcome and therefore see tangible, measurable results.

It is through this lens that I would impress upon city leadership to review the SWOT (Strengths, Weakness, Opportunity, Threats) Analysis that is integral to its Economic Development success.

What are city’s STRENGTHS?
- Our city leadership has created a pathway for permanency for our Outdoor Dining Deck Program (Strategy #14) as well as working towards allowing Outdoor Music in Business Locations (Strategy #15). We can do the same with a program to allow Outdoor Music in Public Spaces (Strategy #16) that is currently listed as “no funding or staff resources to initiate this item.” What are the needs to create a parallel program in our public spaces?
- Our Community Development Department has held at least ten meetings with existing or prospective property owners / representatives to encourage reinvestment through regular communication (Strategy #17). If we already have these existing relationships, the city could benefit from holding an Annual Commercial Property Owners / Brokers Forum (Strategy #19) to engage these stakeholders as a group.

We could exchange ideas and gather support for reinvestment on Facade Improvement (Strategy #2), Beautification Program (Strategy #3), Downtown Revitalization (Strategy #10), and a Property / Business Owners BID (Strategy #9). We could learn about potential incentives or disincentives that are affecting reinvestment. According to the progress report, there is “no funding or staffing resources” to have an Annual Forum. What is the cost estimate and/or resources to create this opportunity so we can learn how to improve and encourage investment?
1 1051
What are city’s WEAKNESSES?
- We also have lack of staff resources for economic development in our city. We may miss opportunities to combine the momentum on project ideas such as the Parks Master Plan. We need to interact and engage with our community. It was noted in our SWOT Analysis that we have a lack of seating spaces to congregate, and we need more public spaces to stimulate foot traffic and vibrancy. As listed in the progress report, a Placemaking Community Forum (Strategy #6) and a Placemaking Project Design (Strategy #7) could have been incorporated in our discussions as we engaged with our community in our Parks Master Workshops. Placemaking includes activating underutilized spaces and gathering places, improving area attractiveness for all ages and abilities, and including community in decision making which happened at these workshops. What can be done to ensure opportunities to engage with our community on new projects like the Civic Facilities Plan can reinforce ideas from our economic development strategies?
- We have two strategies, Wayfinding Signs (Strategy #1) and Comprehensive Downtown Lighting (Strategy #12) that were listed as weaknesses in our SWOT Analysis. As the progress report states for Wayfinding (CIP 111), staff is working with a designer on completing an inventory of our current signage. According to the last progress report, the timeline indicated completion by August 2023. What can be done to ensure we are setting realistic timeframes? What is the new timeframe for completion since the difficulty measure was indicated as “easy” in the adopted strategies? In regards to Lighting (CIP 621), the progress report states “advancement of this project remains contingent on staff availability and is tentatively anticipated to begin in Summer 2024.” Are there any known barriers that would interfere with meeting this timeframe?
What are our city’s OPPORTUNITIES?
- Our city is actively engaged with restarting our Zone-In Project Meetings that creates the opportunity for more stakeholder involvement. I recommend conducting town halls and working with our Chamber of Commerce to encourage our diverse community to share their feedback in multiple formats.

Currently, the Chamber has a Municipal Code and Zoning Committee where businesses and civic members can provide input to streamline processes (Strategy #28) and improve communication with city leadership on potential new regulation that may impact pedestrian-oriented uses (Strategy #10).

Director Tai has been incredibly helpful in providing direction through this process. - Our city is currently working on improving our residential and public parking management system. I recommend highlighting the importance of any proposed changes that helps our city reach its goal to having its own Local Coastal Plan. It is essential that our community understands why we need to have authority to have coastal development permitting issuance authority within our coastal zone. In our city meetings where parking is discussed access for the entire community as well as visitors is essential to our economic success.

What are our city’s THREATS?
- Just as important, we have a culture that is slow to change and are being left behind in terms of economics as it relates to vibrancy (Strategy #10). There is no reason that places like the Point that are family-friendly, couldn’t be done here. We need to combat this “fear-based” mentality about needing to 2 1052
control and over regulate everything. We could combat this threat with developing a regional Business Visitation Program (Strategy #18) and build relationships with large employers like the LA Rams Organization. We have the opportunity to work with a 6.9 billion company by having their Draft Experience here on our beach. We should seize this opportunity to work with other high-visibility companies to better understand their needs that have the potential to attract investment into our community.
- A real threat to our economic vision is the lack of retail attraction in our commercial corridors.

Strategy #22, Retail Program for Competitive and Strengthen Business is an essential backbone of a thriving city. We need to focus on measures that will recruit new businesses to reduce vacancies, increase foot traffic and strengthen our local economy. It was noted in our SWOT Analysis that this continued threat puts us at a disadvantage with our neighboring cities. This lack of foot traffic especially during our off season has lingering negative effects on our entire business community.

We have the opportunity to use these Economic Development Strategies as a catalyst to stimulate investment and opportunities for growth in our commercial corridors. Therefore, I want to reinforce my support for staff’s recommendation to secure an Economic Development Specialist who can project manage these strategies so we can gain momentum that is crucial to encouraging growth, attracting business, creating jobs, and ensuring residents have a better quality of life.

I appreciate your thoughtful consideration.

Laura Pena
3 1053
s
S

STRENGTHS
W

WEAKNESSES
O

OPPORTUNITIES
T

THREATS
• Own the Beach/ clean!
• Climate
• Outdoor dining/music
• Bike lanes and path
• High income community
• Close to LAX
• South Bay “bubble”
• Younger population
• Greenbelt
• Walkable
• Vibrant social scene
• Residential upgrades
• Foot traffic
• Variety of price points for food options
• Local support
• Rich history and culture
• Great schools
• City Manager with policy/planning
experience
• City lawn in front of community center
• Chamber of commerce with experience
with social media
• Proximity to entertainment industry
• Friendly city
• Quality of life
• Community events
• Variety of Character areas
• Heavy traffic on PCH
• Healthy air quality
• Professional firms/ good jobs
• Residential density
• Good local operators
• Poor foot traffic in some places
• Lack density in downtown
• Uninspiring aesthetic / storefronts esp.
• Onsite parking requirements
• On-street parking not well distributed
• Decision makers do not have
experience in urban design
• Anti-change/ anti-density agendas
• Unengaged property owners and
residents
• Resident mix has evolved but the
business mix has not
• High traffic on PCH/ speeding
• Maintenance of public facilities/ needs
better upkeep
• Lighting is an issue
• Homelessness
• Cleanliness
• Lack of hotel rooms
• High cost of living
• Lack of downtown spaces for youth
• Lack of seating spaces/ places to
congregate
• Lack of pedestrian connection
• Lack of signage/ wayfinding / gateway
• Lack of transparency
• No certified Local Coastal Program
• Lack of bike racks
• No implementation of City’s
consultant plans
• Older structures
• Older structures/ historic resources
(ex: Community Center an opportunity
for public/private partnership)
• Zoning code updates
• Placemaking
• Make outdoor dining and music
permanent
• Bike lanes
• Stakeholder knowledge (segment
based off of experience)
• Business Improvement District
• Partnerships with South Bay cities /
market for the region
• Create a positive vision for the
business community
• Potential for stakeholders to be more
involved
• Interactive town halls
• Creating chairs/ seating spaces at the
beginning of the greenbelt
• Wayfinding/gateway signs
• Increase work from home options
• Prioritize economic development to
increase tax base
• Add more upscale restaurants and
shops that will invest money into the
space/the city
• Improvements to residential and
public parking management
• More downtown valet options
• Super regional restaurants opening in
neighboring cities
• Gap between high value residential
and commercial businesses serving it
• Downtown price/ square footage
compared to Manhattan Beach
• Lack of middle-class housing
• Housing affordability
• Lack of readily available parking supply
near commercial activity
• Not changing/local only thinking /not
adapting to change
• Policy that focuses on the old narrative
• Barriers to entry for good operators
(ex: Conditional Use Permits (CUP) are
restrictive)
• Neighboring downtowns are more
dynamic
• Gangs and tagging/ Violence -shooting
in Redondo Beach /Assaults and theft
• Reputation that the City is not
business friendly
• Reputation that the City is a party
town
• Centers like The Point pulling
customers from Hermosa Beach / not
enough places to keep people in
Hermosa Beach
• City regulations discourage investment
• Lack of foot traffic barrier to business
attraction
• Lack of certainty regarding pandemic
regulations
• Concentrated and distribution of
liquor licenses throughout City
• Balancing preserving character and
embracing growth
• Fear-based mentality
• Consumer behavior (people are used
to online sales)
1054

ECONOMIC DEVELOPMENT
STRATEGY PROGRESS REPORT #3
February 27, 2024City Council Meeting
1055

BACKGROUND
 On April 28, 2020, City Council approved creation of
the Economic Development Committee (EDC).
 EDC formed an Economic Development Stakeholders
Advisory Working Group with business representatives and commercial property owners, meeting twice monthly over two years.  EDC developed an Economic Development Strategy
as specified in the Governance Element of PLAN Hermosa. 1056
 On July 12, 2022, City Council adopted the Economic
Development Strategy.
 Economic Development Strategy is a long-term plan with 30 strategic actions in 5 categories: Citywide Beautification, Downtown, Municipal Code Amendments, Business Outreach and City Economic Development Work Program.  Reports twice annually to monitor progress, prioritize actions and consider new opportunities.
 As part of the second bi-annual report to the City Council, staff reported on First Year Implementation Priorities on July 25, 2023.

ECONOMIC DEVELOPMENT STRATEGY
1057
 Third progress report includes status on all 30 strategic actions in 5 categories.
 Numerous initiatives in daily work that support the
business community.
 Includes prior actions and current updates Identifies initiatives that do not have staff and funding resources
 Goal is to allow focus on the Economic Development
Strategy in totality.

ECONOMIC DEVELOPMENT STRATEGY
1058

CITYWIDE BEAUTIFICATION
#1 Wayfinding Signs CIP #111 – Potential wayfinding sign locations, placement, and preliminary designs.
 Replacement and installation of decals, “Shop Eat
Truly Hermosa” and “Walk Your Bike”
#3 Beautification Program / Gateway Signs Holiday décor; median improvements;  Gateway sign at 30th / Pacific Coast Highway Progress Report
1059

CITYWIDE BEAUTIFICATION
#8 Include Beautification-Related Projects in the City Budget and CIP to Add Value and for Residents to Enjoy  The South Bay Parkland Conservancy, partnering with the City, applied for funding from the Coastal Conservancy to enhance and expand “Hermosa Mariposa,” a native butterfly habitat restoration project on the Greenbelt.  “Back to Basics” approach on the Capital Improvements Program (CIP) to focus on critical infrastructure
 CIP 109 to enhance utility boxes – Public Works staff is working with a local artist collaborative on art
Progress Report
1060

DOWNTOWN
#9 Work with Business Community to Explore Formation of a Downtown Business Improvement District On May 3, 2023, the City and Chamber of Commerce held an informational meeting regarding formation of BIDs.
 Chamber is not currently pursuing a BID; focusing on Tourism Improvement District instead.
#10 Focused Update of Downtown Revitalization Strategy, including Preservation of Downtown Retail and Restaurants and Other Active Uses on 1st Floor Housing Element zoning changes to allow mixed use development on Upper Pier was completed.
 Zoning Code Update to address pedestrian-oriented uses.

Progress Report
1061
#11 Develop Identity/Vision for the Downtown
 37 street pole banner locations were formalized in
March 2023 on Pier and Hermosa Ave
 The City has authorized the Chamber of Commerce to
sell items bearing the City logo
#12 Comprehensive Downtown lighting evaluation with complete photometric study, design and installation. RFP for CIP 621 contingent on staff availability; targeted for Summer 2024.
 Replaced string lights on Downtown palm trees
Progress Report
1062
#13 Introduce and Facilitate Downtown Experiences
 In 2023, the City waived a total of $241,967 amounting to $10,155 in direct costs and $231,812 in indirect costs.  Fee Waivers, Agreements, Chamber Events, etc#14 Permanently Allow Outdoor Dining Areas and Lane Reconfigurations City Council approved lane configurations on April 25, 2023  Municipal Code changes and fees were adopted for temporary outdoor dining areas
 Specifications for public on street dining areas to be discussed and approved February 2024
Progress Report
1063

MUNICIPAL CODE AMENDMENTS
#15 Long Term Allowance of Outdoor Music in Business Locations Delayed due to staff resource limitations; staff identified temporary solution (sound amplification permit)
BUSINESS OUTREACH#17 Regular Communication with Key Property Owners to Encourage Reinvestment and Provide Support as Needed Continued availability; staff has held over 10 meetings with existing and prospective property owners to discuss potential property improvements.

Progress Report
1064

BUSINESS OUTREACH
#18 Develop Business Visitation Program. Coffee with a Cop Program, hosted at local businesses Chamber of Commerce launched Walk N Talks with City representatives and business owners
CITY ECONOMIC DEVELOPMENT WORK PROGRAM#20 Shop Local Program City social media team and Chamber launched two shop local campaigns to emphasize business in the community
 City holiday free parking program, $143,577 value
Progress Report
1065
#23 Partnership with Chamber of Commerce to Enhance
Visitors Bureau to Develop and Promote the Hermosa Beach Brand and Provide Visitor Resources  City supports Bi-Annual Truly Hermosa Destination Guides Authorized the Chamber to sell items bearing the City logo#25 Explore Music Events and Activities to Celebrate Hermosa Beach Music History and Provide Musical Experiences for Community and Visitors.  City allocated funds to relaunch Concerts on the Beach Progress Report
1066
#26 Development Assistance Committee/ Development Review Committee Completed staffing of Community Development Department, enabling internal improvements
#27 Provide Customer Service Training to All City Staff to Build on Culture of Excellent Customer Service. City’s migration to the California JPIA now enables training resources that are cost-effective. Customer training is scheduled for this spring. #29 Continue Staff Member Assigned as Business Liaison. The City Manager’s office assigned the duties to an existing team member to ensure continued business support.

Progress Report
1067
#1 CIP 111 – Buildout Cost
#2 Façade Improvement Program – Commercial Districts #4 Beautification Awards (additional events desired)#5 Arts in Public Places Program#6 Placemaking Community Forum#7 Placemaking Project Design#10 Focused Update of Downtown Revitalization Strategy Additional Funding / Resources Needed
1068
#12 Downtown Lighting Evaluation (buildout)
#16 Program to allow outdoor music in public spaces#19 Annual Commercial Property Owner and Brokers Forum#22 Retail Attraction Program for Competitive, Strengthened Retail
#24 Periodic Community Survey to Determine What Types
of Shops or Goods Are Desired and Residents to Drive out of Town to Patronize Additional Funding / Resources Needed
1069
 Multi-disciplinary complement of City Departments, Chamber of Commerce, and professional subject matter experts.
 Prioritization and scope of the Strategic Actions does not consider staff capacity or competing workload demands.
 Staff ability to implement the strategy items is determined by available capacity and daily demands
 Staffing solutions include: a dedicated staff member or an outside economic development specialist to advance the Economic Development Strategy Additional Funding / Resources Needed
1070

ECONOMIC DEVELOPMENT
STRATEGY PROGRESS REPORT #3
February 27, 2024
1071
City of Hermosa Beach
Staff Report
City Hall
1315 Valley Drive
Hermosa Beach, CA 90254
Staff Report
REPORT 24-0084
Honorable Mayor and Members of the Hermosa Beach City Council Regular Meeting of February 27, 2024

AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
AMENDING HERMOSA BEACH MUNICIPAL CODE SECTION 1.10.040 PARAGRAPH (A) TO

INCLUDE VIOLATIONS PERTAINING TO PARTIES ON PRIVATE PROPERTY, SOLID WASTE

COLLECTION, SPECIAL EVENTS, OUTDOOR FITNESS CLASSES FOR CITY PARKS AND

BEACH, AND USE OF CITY SEAL, LOGO, AND INSIGNIA, IN THE LIST OF VIOLATIONS

SUBJECT TO ADMINISTRATIVE CITATION PROCEDURES AND FINDING THE SAME EXEMPT

FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
(Community Development Director Carrie Tai)
Recommended Action:

Staff recommends City Council introduce on first reading an ordinance (Attachment 1) entitled, “An Ordinance of the City of Hermosa Beach, California, Amending Hermosa Beach Municipal Code Section 1.10.040 Paragraph (A) to Include Violations Pertaining to Parties on Private Property, Solid Waste Collection, Special Events, Outdoor Fitness Classes for City Parks and Beach, and Use of City Seal, Logo and Insignia, in the List of Violations Subject to Administrative Citation Procedures” Executive Summary:

The process of prosecuting misdemeanors is time and labor intensive and minimally effective in quickly gaining compliance. The City’s existing administrative citation procedure provides a way to incentivize compliance using a monetary fine. The City may elect to address violations, misdemeanors or infractions, through the administrative citation process, by listing them in the Hermosa Beach Municipal Code (HBMC).

Staff identified frequently observed violations, such as parks and playground rules and storage of trash bins, that are not listed in the HBMC, thereby impairing the City’s ability to pursue administrative remedies. Staff recommends adding several commonly observed violations to the list of violations subject to administrative citation provisions.

Background:

At its August 14, 2007 meeting, City Council approved the creation of an administrative citation process. At its October 9, 2007 meeting, City Council approved the establishment of a tiered City of Hermosa Beach Page 1 of 5 Printed on 3/19/2024
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approach for citation fine amounts and deadlines to incentivize compliance.

Upon observing a violation, the City may issue an administrative citation, consisting of a violation fine, which must be paid to the City. The violation must also be corrected, as continued violations may incur subsequent citations and fines. Administrative citations may be appealed by requesting a hearing before a hearing officer. Administrative citations not appealed and not paid are referred to collections. Unresolved violations may be cited subsequent times. The City may also pursue greater remedies, such as prosecution, for unresolved violations.

Currently, all violations, whether misdemeanor or infraction, must be listed in HBMC Section

1.10.040, Administrative Citations and Penalties, as a violation subject to an administrative citation to be enforced administratively. The City has numerous ways to address misdemeanor or infraction violations of the HBMC. The City may pursue “cease and desist” orders through legal counsel and/or a $1,000 fine or arrest through prosecution. The process of prosecuting misdemeanors is time and labor intensive and minimally effective in quickly gaining compliance. The City’s existing administrative citation procedure provides a way to incentivize compliance using a monetary fine.

The City may elect to address violations, misdemeanors or infractions, through the administrative citation process. Section 1.10.010 of the HBMC states that the use of administrative citations does not prevent the City from using other methods of enforcement or abatement, including prosecution or arrest for misdemeanors.

At its January 23, 2024 meeting, City Council adopted a resolution updating the administrative citation fines for most violations. Some frequently observed violations, such as parks and playground rules, and storage of trash bins are not currently listed, thereby impairing the City’s ability to pursue administrative remedies. Staff presents this discussion and potential violations to add to the list of violations subject to administrative citation provisions.

Past Board, Commission, and Council Actions
Meeting Date Description
August 14, 2007 City Council adopts administrative citation provisions in the Municipal Code.

October 9, 2007 City Council adopts Resolution No. 07-6569 establishing a tiered approach for administrative citation fines.

June 14, 2016 City Council adopts Resolution 16-7033 establishing fines for Short Term Vacation Rentals and Social Host Ordinance October 26, 2021 City Council adopts Ordinance 21-1439 pertaining to dogs running unleashed on City property and City Parks and
Resolution 21-7297 establishing administrative fines for violations.

March 14, 2023 City Council adopts Ordinance adding provisions of Title 15 (Building Code) and Chapter 8.24 (Noise Regulations) to list of violations subject to Administrative Citations.

September 12, 2023 City Council adopts ordinance allowing cannabis delivery City of Hermosa Beach Page 2 of 5 Printed on 3/19/2024
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June 14, 2016 City Council adopts Resolution 16-7033 establishing fines for Short Term Vacation Rentals and Social Host Ordinance October 26, 2021 City Council adopts Ordinance 21-1439 pertaining to dogs running unleashed on City property and City Parks and
Resolution 21-7297 establishing administrative fines for violations.

March 14, 2023 City Council adopts Ordinance adding provisions of Title 15 (Building Code) and Chapter 8.24 (Noise Regulations) to list of violations subject to Administrative Citations.

September 12, 2023 City Council adopts ordinance allowing cannabis delivery and resolution establishing administrative fines for
violations.

January 23, 2024 City Council adopts resolution updating the administrative citation fines for most violations.

Discussion:

Staff requests City Council consider addition of the following violations to HBMC Section 1.10.040, Administrative Citations and Penalties, as a violation subject to an administrative citation that the City can enforce administratively.

Chapter 8.12-Solid Waste Collection and Disposal
The Community Development Department frequently receives complaints about storage of trash containers after trash pick-up day or on a regular basis. Staff currently responds to such complaints by identifying the responsible party and providing education and warnings that trash containers must be properly stored. However, the only current methods of enforcement are “cease and desist” letters or prosecution. The use of administrative citations process would be a more effective way of pursuing compliance.

Chapter 12.30-Special Events on Public Property
The Community Resources Department oversees regulations and permits for special events on public property. Due to the dynamic nature of special events, violations can range from unpermitted events, unlicensed vendors, operation out of compliance with permits, etc. The administrative citation process would provide a way of quickly gaining compliance should violations occur.

Section 12.28.030-Permit requirement for outdoor fitness classes in city parks and on the beach.

The Community Resources Department oversees permits for conducting outdoor fitness classes in City parks and on the beach. The department regularly receives complaints from members of the public stating that instructors are conducting unpermitted classes in City parks or on the beach.

Furthermore, instructors change locations frequently and incur repeated violations. The administrative citation process would provide a way to issue a citation and fine to instructors conducting unpermitted classes, while also tracking repeat violations for subsequent citations and fines.

Chapter 1.06-Custody and Use of the City Seal, Logo, and City Insignia The City revised its branding and identification program in 2022, regulating the use of the City seal, logo, and insignia. For an outside entity to use the City’s proprietary items on products, the City must City of Hermosa Beach Page 3 of 5 Printed on 3/19/2024
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logo, and insignia. For an outside entity to use the City’s proprietary items on products, the City must approve a licensing agreement. City staff observed numerous uses of City branding on products for sale, without City permission. The City currently issues “cease and desist” letters to attempt to gain compliance. Adding administrative citations as an enforcement effort would also provide a compliance tool.

In reviewing the existing violations, staff observed an error in the HBMC related to the social host ordinance violation. The HBMC currently references Section 9.28.030 as a violation; however, the section only lists definitions relating to social host liability for parties with underage drinking.

Definitions, in and of themselves, are not enforceable or a violation. Staff proposes to change the HBMC reference to encompass all parties on private property so that violations of this chapter would be subject to administrative citation provisions, as follows:

Section 9.28.030, Social host liability for parties at which underage drinking occurs; Chapter 9.28, Parties, Events and Gatherings on Private Property The complete redlined changes to HBMC Section 1.10.040 are included with the draft ordinance in Attachment 1.

Fines
At its January 23, 2024 meeting, City Council revised the administrative citation fines for most violations changing the base fine to $250 for a first violation, $500 for a second violation, and $1,000 for third and subsequent violations. Staff proposes that said fines apply to the new violations added to the list of violations subject to administrative citation.

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

Policy:
· 2.6 Responsive to Community Needs. Continue to be responsive to community needs.

Goal 7. Community sustainability and health are a priority in policy and decision-making.

Policy:
· 7.6 Livability Principles. Amend or update policies that may run counter to livability principles.

Environmental Determination:

Pursuant to the California Environmental Quality Act Guidelines section 15061(b)(3), it can be seen with certainty that there is no possibility that the activity contemplated by this ordinance may have a City of Hermosa Beach Page 4 of 5 Printed on 3/19/2024
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with certainty that there is no possibility that the activity contemplated by this ordinance may have a significant effect on the environment.

Fiscal Impact:

There may be a slight positive fiscal impact resulting from the recommended change through reductions in staff time in follow-up with non-complying properties, coordination with the City’s legal counsel, and prosecution efforts. The City’s administrative citation procedures already exist for other purposes and no additional modifications are needed.

Attachments:

1. Draft Ordinance 24-XXX (includes redlined changes)

2. Link to August 14, 2007 City Council Staff Report

3. Link to October 9, 2007 City Council Staff Report

4. Link to June 14, 2016 City Council Staff Report

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

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

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

8. Link to January 23, 2024 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. 24-XXXX

AN ORDINANCE OF THE CITY OF HERMOSA BEACH, CALIFORNIA,
AMENDING HERMOSA BEACH MUNICIPAL CODE SECTION 1.10.040

PARAGRAPH (A) TO INCLUDE VIOLATIONS PERTAINING TO PARTIES ON

PRIVATE PROPERTY, SOLID WASTE COLLECTION, SPECIAL EVENTS,

OUTDOOR FITNESS CLASSES FOR CITY PARKS AND BEACH, AND USE OF

CITY SEAL, LOGO, AND INSIGNIA, IN THE LIST OF VIOLATIONS SUBJECT

TO ADMINISTRATIVE CITATION PROCEDURES AND FINDING THE SAME

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT

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

SECTION 1. Section 1.10.040 (A)(20) is hereby amended to read:

20. Chapter 9.28, Parties, Events and Gatherings on Private Property SECTION 2. Section 1.10.040 “Code violations” [subject to administrative citations] of the Hermosa Beach Municipal Code is hereby amended to add subsections (A)(29) through (32) as follows:

29. Chapter 8.12, Solid Waste Collection and Disposal

30. Chapter 12.30, Special Events on Public Property

31. Section 12.28.030, Permit requirement for outdoor fitness classes in city parks and on the beach

32. Chapter 1.06, Custody and Use of the City Seal, Logo, and City Insignia SECTION 3. Effective Date. This Ordinance shall take effect thirty (30) days after its passage and adoption pursuant to California Government Code section 36937.

SECTION 4. 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. 1077
PASSED, APPROVED and ADOPTED on this 27th day of February, 2024.

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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Ordinance No. 24-XXX
Legislative Digest (for reference only)

1.10.040 Code violations subject to administrative penalty procedures.

A. The violations described in the Municipal Code titles, chapters and sections listed hereinbelow are subject to the administrative penalty procedures and other provisions of this chapter:

1. Chapter 5.04, Business Licenses Generally;

2. Section 6.08.020, Dogs at Large Prohibited in Public Places;

3. Chapter 6.16, Retail Sale of Dogs and Cats;

4. Chapter 8.04, Health Code Adopted;

5. Chapter 8.08, Alarm Systems;

6. Chapter 8.28, Nuisances;

7. Chapter 8.32, Rodent Control;

8. Chapter 8.44, Stormwater and Urban Runoff Pollution Control Regulations;

9. Chapter 12.16, Encroachments (streets and sidewalks);

10. Section 12.20.050, Animals

11. Paragraphs (A), (U) and (V) of Section 12.28.010, Park Regulations Generally;

12. Chapter 12.32, Newsracks;

13. Section 15.04.140, Pedestrian protection during construction;

14. Sections 15.16.070 and 15.16.080, grease recovery systems;

15. Title 17, Zoning;

16. Chapter 8.56, Water Conservation and Drought Management Plan;

17. Chapter 8.60, Water Efficient Landscaping;

18. Chapter 8.64, Ban on Certain Polystyrene Products, Certain Single-Use Plastic Products, and Other Single-Use Products;

19. Chapter 8.68, Plastic Carryout Shopping Bags;

20. Section 9.28.030, Social host liability for parties at which underage drinking occurs;
Chapter 9.28, Parties, Events and Gatherings on Private Property

21. Chapter 10.44, Shared On-Demand Personal Mobility Devices;

22. Chapter 5.78, Tobacco Retailers;

23. Chapter 12.38, Sidewalk Vending;

24. Chapter 12.36, Trees;

25. Chapter 5.80, Cannabis Delivery;
1079

26. Title 15, Building and Construction;

27. Chapter 8.24, Noise Control;

28. Chapter 12.09, Pavement Moratorium.

29. Chapter 8.12, Solid Waste Collection and Disposal

30. Chapter 12.30, Special Events on Public Property

31. Section 12.28.030, Permit requirement for outdoor fitness classes in city parks and on the beach

32. Chapter 1.06, Custody and Use of the City Seal, Logo, and City Insignia 1080
Honorable Mayor and Members of the
Hermosa Beach City Council
August 6, 2007
Regular Meeting of
August 14, 2007
SUBJECT: AMENDMENT TO MUNICIPAL CODE RELATING TO

ADMINISTRATNE CITATIONS FOR CODE VIOLATIONS
Recommendation:

Introduce the attached revised ordinance amending Title 1 of the Municipal Code and other applicable sections in order to provide for the issuance of administrative citations.

Background:

Further review of the draft ordinance previously presented to Council has shown the need for more specificity regarding the applicability of administrative citations for enforcement of different regulations in the Municipal Code. Therefore, the draft has been revised and is attached to this report for Council consideration.

The text amendment has been prepared in response to the need to provide administrative enforcement procedures for violations of the Municipal Code which are deemed minor in nature.

Such violations typically include Building Code, zoning, business license, animal nuisance and other violations which do not constitute immediate threats to public health or safety. The draft amendment is the result of a collaborative effort between planning and code enforcement staff and the City Attorney.

Analysis:

Key Changes:

The following is a description of the amendment's key changes to the Municipal Code:

1. New Chapter 1.10 ("Administrative Citations and Penalties") has been created providing for civil enforcement procedures separate from the criminal misdemeanor and infraction categories referenced above. These new administrative citation provisions establish a category which allows the City to penalize certain minor offenses under civil procedures, as opposed to the "criminal" procedures for infractions and misdemeanors. It should be emphasized, however, that this civil enforcement approach still allows the use of infraction or misdemeanor enforcement actions for such offenses where determined necessary by the City.

2. New Chapter 1. 10 provides for administrative citation procedures, the imposition of fines established by City Council resolution, the contents of the citation, method of service, methods of resolving the citation, appeals, and hearing procedures. If the City exhausts the enforcement process without obtaining a correction of the problem, it would still have ·the right to pursue the violation as an infraction or misdemeanor or to file a civil court action. Appeal and hearing procedures are discussed in more detail later in this report. 1081

3. The following are the sections and chapters of the Municipal Code to be made subject to the new administrative penalty procedures. They are specifically listed in Chapter 1.10:

1. Chapter 5.04: Business Licenses Generally

2. Chapter 6.04: Animals Generally

3. Chapter 8.04: Health Code Adopted

4. Chapter 8.08: Alarm Systems

5. Chapter 8.12: Garbage Collection and Disposal

6. Chapter 8.24: Noise Control

7. Chapter 8.28: Nuisances

8. Chapter 8.32: Rodent Control

9. Chapter 8.40: Smoking

10. Chapter 8.44: Stormwater And Urban Runoff Pollution Control Regulations

11. Chapter 12.16: Encroachments (streets and sidewalks)

12. Chapter 12.32: Newsracks

13. Section 15.04.140: Pedestrian Protection at Building and Demolition Sites

14. Sections 15.16.070 and 16.16.080: Grease Recovery Systems

15. Title 17: Zoning

4. Other changes to Title 1 include:
1) A new Chapter 1.04 entitled "Violations and Penalties" has been created clearly defining misdemeanors and infractions and specifying the penalties for each. Note that these are "criminal" offense categories. Provision has also been made for reclassifying misdemeanors as infractions when appropriate. 2) The existing penalties for infractions are retained:
a. A fine not exceeding one hundred dollars ($100.00) for a first violation; b. A fine not exceeding two hundred dollars ($200.00) for a second violation of the same provision of the Code within one year;
c. A fine not exceeding five hundred dollars ($500.00) for each additional violation of the same provision of the Code within one year.
3) The existing penalties for misdemeanors are retained: "Any person convicted of a misdemeanor under the provisions of this code shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment in the county jail for a period not exceeding six months, or by both such fine and imprisonment." 4) General provisions from old Chapter 1.04 have been integrated into Chapter 1.01, now entitled "Code Adoption and General Provisions". These include such 'housekeeping' items as the Short Title of the Municipal Code, Severability provisions and Definitions and Rules of Construction. The purpose of these changes is to remove redundancies and put code adoption and housekeeping items in one place. For the same reason, the existing sections in Chapter 1.01 relating to misdemeanors and infractions, have been moved to new Chapter 1.04. 2 1082
5) Chapter 1.08 has been renamed from "Citation Procedure" to "General Citations" in order to distinguish these existing general citations, which are imposed in order to ensure a promise to appear in court, from the new administrative citations (in new Chapter 1.10) which provide for civil enforcement procedures and the imposition of fines.

Citation and Hearing Procedures:

A summary of citation and hearing procedures in the ordinance is provided below. Note that appeals are referred directly to a hearing officer appointed by the City Manager, not to the City Council. If an appellant is not satisfied with the hearing officer's decision, he or she may contest the decision in Superior Court.

1. Service of Citation: The enforcement officer attempts to locate and personally serve the responsible person and obtain their signature on the administrative citation. If the enforcement officer is unable to locate the responsible person, the citation may be mailed by certified mail. If the above two methods are unsuccessful, a copy of the citation may be posted on any real property within the city in which the city has knowledge that the responsible party has a legal interest. Finally, if none of the above methods are successful, the citation may be published in a newspaper likely to give actual notice to the party subject to the citation. The publication shall be once a week for four successive weeks in a newspaper published at least once a week.

2. Satisfaction of Citation: Upon receipt of a citation, the responsible person is required to do one of the following:
1) Pay the fine. Pay the fine to the City within 30 days from the date of the citation.

All fines assessed shall be payable to the Hermosa Beach Finance Department.

Payment of a fine shall not excuse or discharge a failure to correct continuing violations nor shall it bar further enforcement action by the City; 2) Remedy the Violation. If the violation is of a nature that it can be remedied and is deemed by the enforcement officer to not create an immediate danger to health and safety and was corrected within the time given, no fine shall be imposed; or 3) File an appeal. Appeals shall be filed in accordance with the time limits and other provisions of Section 1.10.080.

3. Appeal of Citation: Any person receiving an administrative citation may contest the citation by requesting an administrative hearing within 30 days of service of the citation.

4. Appeal Hearing Procedure:
1) The City Manager will designate the hearing officer for an administrative citation hearing.
2) A hearing before the hearing officer will be set for a date that is not less than 15 and not more than 60 days from the date that the "request for hearing" is filed. 3) The hearing officer will only consider evidence that is relevant to whether the violation occurred and whether the responsible person has caused or maintained the violation on the date(s) specified in the citation. 3 1083
4) Administrative hearings are informal, and formal rules of evidence. and discovery do not apply. Each party will have the opportunity to present evidence in support of his or her case and to cross-examine witnesses. The city bears the burden of proof at an administrative hearing to establish a violation of the code.

5. Hearing Officer's Decision: At the conclusion of the hearing or within 15 days thereafter, the administrative hearing officer shall render a decision per the alternatives specified in the ordinance, ranging from sustaining the citation to making a finding that no violation occurred.

6. Right to Judicial Review: Within 20 days after service of the decision of the hearing officer upon the responsible person, he or she may seek review of the decision by filing a notice of appeal with the Superior Court.

7. Failure to Comply: In the absence of a timely appeal to the Superior Court or if the City prevails in court, failure to comply with an order to abate a continuing violation by the date specified in the order is a misdemeanor offense. Filing a misdemeanor action does not preclude the City from pursuing any other remedies to gain compliance provided in the Municipal Code or under state law.

Conclusions:

The ordinance amendment will provide for a more efficient and streamlined enforcement procedure for most violations of the Municipal Code than is available under the present provisions. It has proven effective in a number of other cities, such as West Hollywood, Santa Ana and others.

If the ordinance is approved, staff will return with a separate agenda item to establish the fine amounts for administrative penalties.
~=ctor -
Community Development Department
Concur:

Steph .

City~
Attachments:

1. Proposed Code Amendment Ordinance

2. Example of Administrative Citation Form
4 1084
ATTACHMENT 1:

CODE AMENDMENT ORDINANCE
1085
ORDINANCE NO. __ _

AN ORDINANCE OF THE CITY OF HERMOSA BEACH AMENDING THE GENERAL

PROVISIONS AND ENFORCEMENT PROCEDURES OF THE MUNICIPAL CODE The City Council of the City of Hermosa Beach does ordain as follows:

SECTION 1. An amendment to the Municipal Code has been prepared in response to the need to provide administrative enforcement procedures for violations of the Municipal Code which are deemed minor in nature.

SECTION 2. The code amendment is not subject to environmental review under the California Environmental Quality Act because it is not classified as a project under CEQA Guidelines, Sec. 15378.

SECTION 3. On August 14, 2007, the City Council held a duly-noticed public hearing and considered the proposed code amendment, and the evidence and arguments submitted by the City staff and all interested parties. A notice of time, place and purpose of the public hearing was duly given and testimony was presented to and considered by the City Council at the public hearing.

SECTION 4. The City Council hereby approves the amendment to the Hermosa Beach Municipal Code set out in Exhibits A and B attached hereto and included herein by reference.

SECTION 5. This ordinance shall become effective and be in full force and effect from and after thirty (30) days of its final passage and adoption.

SECTION 6. Prior to the expiration of fifteen (15) days after the date of its adoption, the City Clerk shall cause this ordinance to be published in the Easy Reader, a weekly newspaper of general circulation published and circulated in the City of Hermosa Beach in the manner provided by law.

SECTION 7. The City Clerk shall certify to the passage and adoption of this ordinance, shall enter the same in the book of original ordinances of the City of Hermosa Beach, and shall make minutes of the passage and adoption thereof in the records of the proceedings of the City Council as which the same is passed and adopted.

PASSED, APPROVED AND ADOPTED this_ day of September, 2007 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
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PRESIDENT of the City Council and MAYOR of the City of Hermosa Beach, California ATTEST: APPROVED AS TO FORM:

City Clerk City Attorney
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EXHIBIT A:

AMENDMENT TO TITLE 1 OF MUNICIPAL CODE
1088
Title 1
General Provisions
Chapters:

1.01 CODE ADOPTION AND GENERAL PROVISIONS

1.04 VIOLATIONS AND PENALTIES

1.08 GENERAL CITATIONS

1.10 ADMINISTRATIVE CITATIONS AND PENALTIES
Chapter 1.01

CODE ADOPTION AND GENERAL PROVISIONS

1.01. 010 Adoption of the Hermosa Beach Municipal Code.

That certain document entitled "Code of the City of Hermosa Beach, California", (hereinafter the "Code" or "Municipal Code"), a copy of which has been filed and is on file in the office of the City Clerk for public inspection, together with the secondary Codes therein adopted by reference, is hereby adopted by this reference as the comprehensive ordinance Code for the City of Hermosa Beach pursuant to the provisions of Article 2 of Chapter 1 of Part 1 of Division 1 of Title 5 of the Government Code of the State of California, and each and all of the provisions, terms, and penalties of said Code on file in the office of the City Clerk are hereby referred to, adopted, incorporated herein and made a part of this ordinance as if fully set forth herein.

1.01. 020 Short title.

The ordinances embraced in the following chapters and sections shall constitute and be designated the "Hermosa Beach Municipal Code", the "HBMC", or the "Municipal Code", and may be so cited.

1.01. 030 Provisions considered as continuations of existing ordinances.

The provisions appearing in this Code, so far as they are the same as those of ordinances existing at the time of the effective date of this Code, shall be considered as continuations thereof and not as new enactments.

1.01. 040 Repeal of certain ordinances and certain ordinances to remain in effect.

All ordinances of the City in force upon the effective date of the Code are hereby repealed except as follows:

A. Ordinances codified by the Code; and
B. Uncodified ordinances comprising or amending the Zoning Map of the City of Hermosa Beach, which are listed in the Uncodified Ordinance List on file in the Office of the City Clerk; and
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C. Uncodified ordinances relating to matters of a special or temporary nature, which ordinances are listed in the Uncodified Ordinance List on file in the Office of the City Clerk; and
D. Any uncodified ordinance promising or guaranteeing the payment of money or authorizing the issue of bonds, or any evidence of the City's Indebtedness, or any contract or obligation assumed by the City; and
E. Any ordinance granting any franchise, license or other right conferred by the City on any person or corporation, which franchise, license or other right is in effect as of September 10, 1996; and
F. Any uncodified administrative ordinance of the City Council not in conflict with the provisions of the Code; and
G. Any uncodified ordinance relating to the salaries, benefits, and working conditions of City officers and employees; and
H. Any uncodified ordinance relating to the levy of any tax in effect as of September 1 O, 1996.

1.01. 050 Effect of repeal of ordinances.

The repeal of an ordinance shall not revive any ordinances in force before or at the time the ordinance repealed took effect. Also, the repeal of an ordinance shall not affect any punishment or penalty incurred before the repeal took effect, nor any suit, prosecution or proceeding pending at the time of the repeal, for any offense committed under the ordinance repealed.

1.01. 060 Superseded ordinances.

All ordinances codified by the Code are superseded to the extent they conflict with the Code.

1.01. 070 Savings provisions.

The repeal herein of any ordinance of the City of Hermosa Beach shall not affect or impair any act done, or right vested or approved, or any proceeding, suit or prosecution had or commenced in any cause before such repeal shall take effect; but every such act done, or right vested or accrued, or proceeding, suit, or prosecution had or commenced shall remain in full force and effect for all intents and purposes as if the applicable provisions of the ordinance, or part thereof, so repealed had remained in force and effect. No offense committed and no liability, penalty, or forfeiture, whether civilly or criminally incurred prior to the time when any such ordinance, or part thereof, shall be repealed or altered by said Code, shall be discharged or affected by such repeal or alteration. Prosecutions and suits for such offenses, liabilities, penalties, or forfeitures shall be instituted and proceeded with in all respects as if such prior ordinance, or part thereof, had not been repealed or altered.

1.01. 080 Severability.

If any section, subsection, sentence, clause, phrase or portion of this Municipal Code is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Code. The City Council hereby declares that it would have adopted this 2 1090
Code and each section, subsection, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more sections, subsections, phrases, or portions be declared invalid or unconstitutional.

1.01. 090 Definitions and rules of construction.

In the construction of this Code and of all ordinances of the City, the following rules shall be observed, unless such construction would be inconsistent with the manifest intent of the city council or the context clearly requires otherwise:

City. The words "the City" or "this City" shall be construed as if followed by the words "of Hermosa Beach."
Code. The words "the Code" or "this Code" shall mean the code of the City of Hermosa Beach, California.

Computation of Time. The time in which any act provided by law is to be done is computed by excluding the first day and including the last, unless the last day is a holiday and then it is also excluded.

Council. Whenever the word "Council" is used in this Code, it shall be construed to mean the City Council of the city of Hermosa Beach.

County. The words "the County" or "this County" shall mean the County of Los Angeles.

Day. A "day" is the period of time between any midnight and the midnight following.

Daytime, Nighttime. "Daytime" is the period of time between sunrise and sunset. "Nighttime" is the period of time between sunset and sunrise.

Gender. The masculine gender includes the feminine and neuter.

In the City. The words "in the City" shall mean and include all territory over which the City now has, or shall hereafter acquire jurisdiction for the exercise of its police powers or other regulatory powers.

Joint Authority. All words giving a joint authority to three or more persons or officers shall be construed as giving such authority to a majority of such persons or officers.

Month. The word "month" shall mean a calendar month.

Number. The singular number includes the plural, and the plural the singular.

Oath. "Oath" includes an affirmation.

Officers, Departments, etc. Officers, departments, boards, commissions and employees referred to in this Code shall mean officers, departments, boards, commissions and employees of the City of Hermosa Beach, unless the context clearly indicates otherwise. 3 1091
Official Time. Whenever certain hours are named in this Code, they shall mean Pacific Standard Time or Daylight Saving Time, as may be in current use in the City.

Or, And. "Or" may be read "and", and "and" may be read "or" if the sense requires it.

Owner. The word "owner", applied to a building or land, shall include any part owner, joint owner, tenant in common, tenant in partnership, joint tenant or tenant by the entirety of the whole or of a part of such building or land.

Person. "Person" includes any person, firm, association, organization, partnership, business trust, corporation or company.
"Personal property" includes every species of property, except real property, as defined in this section.

Preceding, Following. The words "preceding" and "following" mean next before and next after, respectively.
"Process" includes a writ or summons issued in the course of judicial proceedings of either a civil or criminal nature.

Property. The word "property" shall include real and personal property. "Real property" shall include lands, tenements and hereditaments.

Shall, May. "Shall" is mandatory and "may" is permissive.

Signature or Subscription by Mark. "Signature" or "subscription" includes a mark when the signer or subscriber cannot write, such signer's or subscriber's name being written near the mark by a witness who writes his own name near the signer's or subscriber's name; but, a signature or subscription by mark can be acknowledged or can serve as a signature or subscription to a sworn statement only when two witnesses so sign their own names thereto.

State. The words "the state" or "this state" shall be construed to mean the state of California.

Tenant or Occupant. The words "tenant" or "occupant", applied to a building or land, shall include any person holding a written or an oral lease of, or who occupies the whole or a part of such building or land, either alone or with others.

Tenses. The present tense includes the past and future tenses, and the future includes the present.

Week. A "week" consists of seven consecutive days.

Writing. "Writing" includes any form of recorded message capable of comprehension by ordinary visual means. Whenever any notice, report, statement or record is required or 4 1092
authorized by this Code, it shall be made in writing in the English language, unless it is expressly provided otherwise.

Year. The word "year" shall mean a calendar year, except where otherwise provided. 5 1093

1.04. 010
Chapter 1.04

VIOLATIONS AND PENAL TIES
Violations of Code.

No person shall violate any provisions or fail to comply with any of the requirements of this Code. Violations of this Code are punishable as set forth in this chapter.

1.04. 020 Misdemeanors.

Any person violating any of the provIsIons or failing to comply with any of the requirements of this Code shall be guilty of a misdemeanor unless such violation or failure to comply is expressly stated by this Code to be an infraction or is subject to a civil administrative penalty pursuant to chapter 1.10. Any person convicted of a misdemeanor under the provisions of this Code shall be punishable by a fine of not more than one thousand dollars ($1,000.00) or by imprisonment in the county jail for a period not exceeding six months, or by both such fine and imprisonment. Each such person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Code is committed, continued or permitted by such person and shall be punishable accordingly.

1.04. 030 Infractions.

A. Penalties. Any person violating any provIsIon or failing to comply with any mandatory requirement of this Code expressly stated by this Code to be an infraction shall be guilty of an infraction. Except as otherwise provided in this Code, any person convicted of an infraction shall be punishable by:

1. A fine not exceeding one hundred dollars ($100.00) for a first violation;

2. A fine not exceeding two hundred dollars ($200.00) for a second violation of the same provision of the Code within one year;

3. A fine not exceeding five hundred dollars ($500.00) for each additional violation of the same provision of the Code within one year.

B. No counsel for infractions at public expense. An infraction is not punishable by imprisonment. A person charged with an infraction shall not be entitled to have the public defender or other counsel appointed at public expense to represent him or her unless he or she is arrested and not released on his or her written promise to appear, on his or her own recognizance, or on a deposit of bail.

1.04. 040 Reclassification of misdemeanors as infractions.

A violation of any provision of this Code section which is classified as a misdemeanor may be charged as an infraction when:

1. The prosecutor files a complaint charging the offense as an infraction, unless the defendant, at the time he or she is arraigned, after being informed of his or her rights, elects to have the case proceed as a misdemeanor; or 6 1094

2. The court, with the consent of the defendant, determines that the offense is an infraction. In that event, the case shall proceed as if the defendant had been arraigned on an infraction complaint.

1.04. 050 Additional Provisions.

A. Each day a separate offense. Unless otherwise specified, each person shall be guilty of a separate offense for each and every day during any portion of which any violation of any provision of this Code is committed, continued or permitted by such person and shall be punishable accordingly.

B. Included offenses. Whenever in the Code any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact or such act of omission.

C. Violations deemed to be a public nuisance. In addition to the penalties hereinabove provided, any condition caused or permitted to exist in violation of any of the provisions of the Code shall be deemed a public nuisance and may be summarily abated as such by the City, and every day such condition continues shall be regarded as a new and separate offense.
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1.08. 010 General Citation.

Chapter 1.08

GENERAL CITATIONS
If any person is arrested for the violation of any provision of this Code and such person is not taken immediately before a magistrate, the arresting officer shall prepare in duplicate a written notice to appear in court. Such notice may be referred to as a "general citation," and shall contain the name and address of such person, the offense charged, and the time when and place where such person shall appear in court.

1.08. 020 Notices to appear--Time.

The time specified in the notice to appear shall be at least ten days after such arrest.

1.08. 030 Notices to appear--Place.

The place specified in the general citation shall be:

1. The court of the magistrate before whom the person would be taken if the requirement of arresting and taking the person before a magistrate were complied with; or

2. Before an officer authorized by such court to receive deposit or bail.

1.08. 040 Notices to appear--Promise and release.

The arresting officer shall deliver one copy of the general citation to the arrested person. The arrested person, in order to secure release, shall give his written promise to appear in court by signing a duplicate notice which shall be retained by the officer. Thereupon, the arresting officer shall forthwith release from custody the person arrested.

1.08. 050 Warrants for arrest.

When a person signs a written promise to appear at the time and place specified in the written promise to appear and does not appear or has not posted bail as provided in Section 853.6 of the Penal Code of the State of California, the magistrate shall issue and have delivered for execution a warrant for such person's arrest within twenty (20) days after his failure to appear as promised, or if such person promises to appear before an officer authorized to accept bail, other than a magistrate, and fails to do so on or before the date which such person promised to appear, within twenty (20) days after the delivery of such written promise to appear by the officer to a magistrate having jurisdiction over the offense.

1.08. 060 Violations of promises to appear.

Any person willfully violating his written promise to appear in • court shall be guilty of a misdemeanor regardless of the disposition of the charge upon which he was originally arrested. 1096

1.08. 070 Arresting officer defined.

For the purpose of this chapter, the term "arresting officer'' means any police officer of the City and any other employee of the City whose duty it is to enforce the provisions of this Code who is authorized by the City Manager to use the general citation procedure established by said sections in the performance of his enforcement duties.
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1.10.010
Chapter 1.10

ADMINISTRATIVE CITATIONS AND PENALTIES
Administrative citations.

Certain provisions of this Code, specifically designated in this chapter, may be enforced through the use of administrative citations and penalties as provided for in this chapter. Use of the provisions of this chapter shall not prevent the use of other methods of enforcement or abatement as provided by this Code, including but not limited to criminal and civil actions.

1.10 .020 Definitions.

For the purposes of this chapter, the following definitions shall apply:

A. Responsible person: A responsible person is any of the following:

1. A person who causes a Code violation to occur.

2. A person who maintains or allows a Code violation to continue, by his or her action or failure to act.

3. A person whose agent, employee, or independent contractor causes a Code violation by its action or failure to act.

4. A person who is the owner of, and/or a person who is a lessee or sub lessee with the current right of possession of, real property where a property-related Code violation occurs.

5. A person who is the on-site manager of a business who normally works daily at the site when the business is open and is responsible for the activities on such premises.

For the purposes of this definition, "person" includes a natural person or legal entity and the owners, majority stockholders, corporate officers, trustees, and general partners of a legal entity.

B. Legal Interest: Any interest that is represented by a deed of trust, quitclaim deed, mortgage, judgment lien, tax or assessment lien, mechanic's lien or other similar instrument, which is recorded with the County Recorder.

C. Enforcement officer: Any police officer or City employee or agent of the City designated by the director of any City department who has the authority and responsibility to enforce the provisions of this Code as provided for herein.

1.10.030 Administrative citations not a waiver of other remedies.

The procedures established in this chapter may be in addition to any criminal, civil or other legal remedy established by law which may be pursued to address violations of the Municipal Code.

Issuance of an administrative citation shall not be deemed a waiver of any other enforcement remedies found within this Code.
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1.10. 040 Code violations subject to administrative penalty procedures.

A. The violations described in the Municipal Code titles, chapters and sections listed herein below are subject to the administrative penalty procedures and other provisions of this chapter 1.10:

1. Chapter 5.04: Business Licenses Generally

2. Chapter 6.04: Animals Generally

3. Chapter 8.04: Health Code Adopted

4. Chapter 8.08: Alarm Systems

5. Chapter 8.12: Garbage Collection and Disposal

6. Chapter 8.24: Noise Control

7. Chapter 8.28: Nuisances

8. Chapter 8.32: Rodent Control

9. Chapter 8.40: Smoking

10. Chapter 8.44: Stormwater And Urban Runoff Pollution Control Regulations

11. Chapter 12.16: Encroachments (streets and sidewalks)

12. Chapter 12.32: Newsracks

13. Section 15.04.140: Pedestrian Protection at Building and Demolition Sites

14. Sections 15.16.070 and 16.16.080: Grease Recovery Systems

15. Title 17: Zoning
B. Any person who violates the same provision, or fails to comply with the same requirement, of the sections of this Code set forth in paragraph A of this section more than three times within a twelve-month period shall be guilty of a misdemeanor for each violation committed thereafter within that same twelve-month period. Any person who violates or fails to comply with the sections of this Code set forth in paragraph A of this section and who possesses no photo identification or refuses to identify himself/herself to an enforcement officer, making it impossible to issue an administrative citation, shall be guilty of a misdemeanor.

1.10. 050 Fines.

A. Any responsible person who receives an Administrative Citation shall be subject to the payment of fines as set out in the penalty schedule for administrative fines as adopted by resolution of the City Council. An administrative penalty shall be assessed by means of an administrative citation issued by an enforcement officer, and shall be payable directly to the City Treasurer. A portion of each penalty shall constitute reimbursement for the City's administrative expenses in issuing and processing the citation. Penalties shall be collected in accordance with the procedures specified in this chapter. Payment of a penalty shall not excuse the failure to correct the violation nor shall it bar further enforcement action by the City. In the case of violations of the building, plumbing or electrical codes, an administrative citation shall not be issued until after the responsible party has been provided notice and a reasonable opportunity to correct the violation, and has failed to do so.

B. Failure of any person to pay the fines assessed by an administrative citation may result in the matter being referred for collection which includes but is not limited to the filing of a small claims court action.

1.10. 060 Contents of citation.
11 1099
Each administrative citation shall contain the following information:

1. Date, approximate time, and address or definite description of the location where the violation(s) was observed;

2. The Code sections or conditions violated and a description of the violation(s);

3. The amount of the fine for the violation(s);

4. An explanation of how the fine shall be paid and the time period by which it shall be paid;

5. Identification of rights of appeal, including the time within which the citation may be contested and the place to obtain a request for hearing form to contest the administrative citation;

6. The name and signature of the enforcement officer issuing the citation;

7. If the violation is one which is continuing, an order to correct the violation, the actions needed to correct the violation, and an explanation of the consequences for failing to correct the violation; and

8. The name and address of the responsible person, and a signature line so that the responsible person may acknowledge receipt of the citation.

1.10.070 Service of citation.

The following procedures shall be used in serving administrative citations:

1. Personal service. The enforcement officer shall attempt to locate and personally serve the responsible person and obtain the signature of the responsible person on the administrative citation. If the responsible person served refuses or fails to sign the administrative citation, the failure or refusal to sign shall not affect the validity of the administrative citation or of subsequent proceedings.

2. Service of citation by mail. If the enforcement officer is unable to locate the responsible person, the administrative citation shall be mailed to the responsible person by certified mail, postage prepaid with a requested return receipt. Simultaneously, the citation may be sent by first class mail. If the citation is sent by certified mail and returned unsigned, then service shall be deemed effective pursuant to first class mail, provided the citation sent by first class mail is not returned.

3. By Posting on Property. If the enforcement officer is unable to serve the citation under subsections 1 or 2 preceding, a copy of the citation may be posted on any real property within the City in which the City has knowledge that the responsible party has a legal interest. Service under this subsection shall be deemed effective on the date when the notice is posted; or

4. By Publication. If the enforcement officer cannot post the citation by any of the preceding methods, the citation may be published in a newspaper likely to give actual notice to the party subject to the citation. The publication shall be once a week for four successive weeks in a newspaper published at least once a week

1.10. 080 Satisfaction of administrative citation.

Upon receipt of a citation, the responsible person must do one of the following:
1) Pay the fine. Pay the fine to the City within 30 days from the date of the citation. All fines assessed shall be payable to the Hermosa Beach Finance Department. Payment of a 12 1100
fine shall not excuse or discharge a failure to correct continuing violations nor shall it bar further enforcement action by the City. Payment of the fine, in the absence of a timely request for a hearing pursuant to Section 1.10.090, waives the responsible party's right to the administrative hearing and appeal process;
2) Remedy the Violation. If the violation is of a nature that it can be remedied and is deemed by the enforcement officer to not create an immediate danger to health and safety and was corrected within the time given, no fine shall be imposed; or 3) File an appeal. Appeals shall be filed in accordance with the time limits and other provisions of Section 1.10.090.

In the event the responsible party fails or refuses to select and satisfy any of the alternatives set forth above, then the penalty shall be immediately due and owing to the City and may be collected in any manner allowed by law for collection of a debt. Commencement of an action to collect the delinquent penalty shall not preclude issuance of additional citations to the responsible party should the violations persist.

1.10. 090 Appeal of administrative citation.

A. Time to file an appeal. Any responsible person to whom an administrative citation is issued may choose to contest the citation by requesting an administrative hearing within thirty (30) days of service of the citation. In order to request a hearing, the responsible person shall submit in the manner directed on the citation a fully completed request for administrative hearing form along with either a deposit of the full amount of the administrative fine (in cash or by way of a negotiable check) or a notice that an advance deposit hardship waiver request has been filed pursuant to paragraph B of this section 1.10.090. The request for hearing shall be incomplete if it does not include the deposit in the full amount of the fine or the request for a hardship waiver. The deposit will be retained in a non-interest bearing account until the matter is resolved. If a timely and complete request for hearing is not submitted, the citation shall be deemed final, and the fine shall be immediately due and owing to the City and may be collected in any manner allowed by law for collection of a debt.

Commencement of an action to collect the delinquent fine shall not preclude issuance of additional citations to the responsible party should the violation persist.

B. Hardship Waiver. Any responsible person who requests a hearing to contest an administrative citation and who is financially unable to deposit the administrative fine as required in paragraph A of this section may file a request for an advance deposit hardship waiver. The request shall be filed with the planning department on an advance deposit hardship waiver application form, available from the department, no later than ten days after service of the administrative citation. The City Manager or his/her designee may issue an advance deposit hardship waiver only if the person requesting the waiver submits to the City Manager or his/her designee a sworn affidavit, together with any supporting documents, demonstrating to the satisfaction of the City Manager or his/her designee the person's financial inability to deposit with the City the full amount of the fine in advance of the hearing. Written proof of financial hardship, at a minimum must include tax returns, financial statements, bank account records, salary records or similar documentation demonstrating that the responsible person is unable to deposit the penalty. The City Manager or his/her designee shall issue a written decision specifying the reasons for issuing or not issuing the waiver. The decision shall be final, and shall be served upon the person requesting the waiver by certified mail postage pre-paid return receipt requested and first class mail. If the 13 1101
City Manager or his/her designee determines that the waiver is not warranted, the person shall remit the full amount of the fine as a deposit within ten days of mailing of the decision.

If the full amount of the fine is not deposited within the ten-day period, the request for hearing shall be deemed incomplete and waived, and the citation shall be deemed final. The fine shall be immediately due and owing to the City and may be collected .in any manner allowed by law for collection of a debt.

C. Dismissal of citation. The City Manager may dismiss an administrative citation at any time if it is determined to have been issued in error, in which event any deposit made shall be refunded.

D. Hearing procedure.

1. The Hermosa Beach City Manager shall designate the hearing officer for the administrative citation hearing.

2. After receipt of the "request for hearing" and fine deposit (or, if applicable, approval of a hardship waiver) a hearing before the hearing officer shall be set for a date that is not less than 15 and not more than 60 days from the date that the "request for hearing" is filed in accordance with the provisions of this section. The person requesting the hearing shall be notified of the time and place set for the hearing by first class mail at least ten days prior to the date of the hearing. The responsible person may request one continuance of the hearing, but in no event may the hearing begin later than 90 days after receipt of the request for hearing from the responsible person. The responsible person may attend the hearing in person or in lieu of attending may submit written argument and documentation under penalty of perjury prior to the time scheduled for the hearing.

3. Any documentation other than the administrative citation, which the enforcement official has submitted or will submit to the hearing officer, shall be sent to the person requesting the hearing by regular first class mail at least five days before the date on which the hearing is scheduled. The documentation shall also be made available upon request at the time of the hearing

4. If the responsible person fails to attend the hearing or fails to submit arguments in writing, the administrative hearing officer will render a decision based on the documents that have been received and the responsible person will be deemed to have waived his/her right to an administrative hearing. Under those circumstances, the administrative hearing officer may request additional information from either the responsible person or the enforcement official as may be necessary to render a decision. If service of the administrative hearing is made by posting the citation on real property within the City in which the responsible person has a legal interest, and the responsible person provides verifiable and substantial evidence that removal of the administrative citation from the property by a third party caused the responsible person's failure to attend the scheduled hearing, the responsible person shall be entitled to an administrative hearing.

5. The hearing officer shall only consider evidence that is relevant to whether the violation occurred and whether the responsible person has caused or maintained the violation of the Municipal Code on the date(s) specified in the administrative citation. 14 1102

6. Administrative hearings are informal, and formal rules of evidence and discovery do not apply. Each party shall have the opportunity to present evidence in support of his or her case and to cross-examine witnesses. The City bears the burden of proof at an administrative hearing to establish a violation of the Code. The administrative citation and any additional reports submitted by the enforcement official shall constitute prima facie evidence of the facts contained in those documents. The administrative hearing officer must use a preponderance of evidence as the standard of evidence in deciding the issues.

7. The hearing officer may continue the hearing and request additional information from the issuing officer/employee or the recipient of the administrative citation prior to issuing a written decision.

E. Hearing officer's decision. At the conclusion of the hearing or within fifteen (15) days thereafter, the administrative hearing officer shall render a decision as follows:

1. Determine that the violation for which the citation was issued occurred, and impose a fine in the amount set forth in the fine and penalty schedule, and if the violation has not been corrected as of the date of the hearing, order correction or abatement of the violation. In this event, the City shall retain the fine deposited by the responsible person.

2. Determine that the violation for which the citation was issued occurred, but that the responsible party has introduced credible evidence of mitigating circumstances warranting imposition of a lesser fine than that prescribed in the fine and penalty schedule, or no fine at all, and impose such lesser fine, if any; and if the violation has not been corrected as of the date of the hearing, order correction or abatement of the violation. In this event, the City shall retain all or a portion of the fine deposited by the responsible person as applicable.

3. Determine that the violation for which the citation was issued did not occur or that the condition did not constitute a violation of the Municipal Code, or that the person cited was not the responsible party. In this event, the City shall refund the deposit, if any, within fifteen (15) days of the decision.

The administrative hearing officer's decision shall be in writing, shall explain the basis for the decision, and shall be served upon the responsible party by first class mail, to the address stated on the request for hearing form. If applicable, the order shall set forth the date by which compliance shall be achieved and the imposed fine paid to the City. The order shall be final on the date of mailing, which shall be deemed the "date of service," and shall notify the responsible person of the right to appeal to the Superior Court, as further described in Section 1.10.100.

F. Collection of unpaid fines. Failure to pay the assessed administrative fine within 15 days or such other time limit set forth in the administrative citation, and/or if the decision of the hearing officer has not been successfully challenged by a timely appeal as provided in section 1.10.100, this obligation shall constitute a special assessment and/or lien against the real property on which the violation occurred. The special assessment and/or lien shall be imposed pursuant to the procedure set forth in Section 8.28.080 of this Code. Alternatively, the matter may be referred for collection, which includes but is not limited to the filing of a small claims court action.
15 1103

1.10.100 Right to judicial review.

Within 20 days after service of the decision of the administrative hearing officer upon the responsible person, he/she may seek review of the decision by filing a notice of appeal with the Superior Court. The responsible person shall serve upon the City Clerk either in person or by first class mail a copy of the notice of appeal. If the responsible person fails to timely file a notice of appeal, the administrative hearing officer's decision shall be deemed final.

1.10.110 Failure to comply with administrative order.

In the absence of a timely appeal to the Superior Court, failure to comply with a final administrative order directing the abatement of a continuing violation by the date specified in the order is a misdemeanor offense for each day thereafter, or any portion thereof, that the violation is maintained or permitted. In the event of a timely appeal to the Superior Court pursuant to section 1.10.100, and provided the City prevails thereon, the responsible person shall be guilty of a misdemeanor offense for each day, or any portion thereof, that a continuing violation is maintained or permitted after a court ordered abatement date. Filing a misdemeanor action does not preclude the City from pursuing any other remedies to gain compliance provided in this Code or under state law. For purposes of this chapter, a "continuing violation" shall mean a single, ongoing condition or activity in violation of the Municipal Code. 16 1104
EXHIBITS:

AMENDMENTS TO SELECTED SECTIONS OF THE

MUNICIPAL CODE
17 1105
The following Sections of the Hermosa Beach Municipal Code are amended to read as follows:

5.04. 290 Enforcement of chapter. [Business Licenses]
It shall be the duty of the license collector to enforce each and all of the provisions of this title, and the chief of police shall render such assistance in the enforcement hereof as may from time to time be required by the license collector and the city manager. The license collector in the exercise of the duties imposed upon him hereunder, and acting through his deputies or duly authorized assistants, shall examine all places of business in the city to ascertain whether or not the provisions of this title have been complied with.

The license collector, his deputies, all police officers, and inspectors of the fire and building departments are hereby appointed as business license inspectors in addition to their other duties, and shall have and exercise the power to enter any place of business for which license is required by this title and to demand the exhibition of the license for the current year by any person engaged or employed in the transaction of the business and if such person shall then and there fail to exhibit the license, the licensee shall be liable to the penalty provided in this title for a violation of this title. It is made the duty of such officers and inspectors to notify the license collector, in writing, of any person violating any of the provisions of this title. The license collector may, with the prior consent of the city council, deputize a qualified accountant to examine the necessary books and records of any person doing business in the city.