Hermosa Beach City Council
April 8, 2025

CITY OF HERMOSA BEACH

CITY COUNCIL
Regular Meeting Agenda

Tuesday, April 8, 2025
Closed Session - 5:00 PM and Open Session - 6:00 PM
Council Chambers
1315 Valley Drive
Hermosa Beach, CA 90254

CITY COUNCIL
Dean Francois, Mayor
Rob Saemann, Mayor Pro Tem
Mike Detoy, Councilmember
Ray Jackson, Councilmember
Michael D. Keegan, Councilmember
David Pedersen, City Treasurer

APPOINTED OFFICIALS
Suja Lowenthal, City Manager
Patrick Donegan, City Attorney

EXECUTIVE TEAM
Brandon Walker, Administrative Services Director
Myra Maravilla, City Clerk
Lisa Nichols, Community Resources Director
Angela Crespi, Deputy City Manager
Paul LeBaron, Police Chief
Joe SanClemente, Public Works Director
AMERICANS WITH DISABILITIES ACT OF 1990
To comply with the Americans with Disabilities Act of 1990, Assistive Listening Devices (ALD) are available for check out at the meeting. If you require special assistance to participate in this meeting, you must call or submit your request in writing to the Office of the City Clerk at (310) 318-0204 or at [email protected] at least 48 hours before the meeting.

PARTICIPATION AND VIEWING OPTIONS
Hermosa Beach City Council meetings are open to the public and are being held in person in the City Hall Council Chambers located at 1315 Valley Drive, Hermosa Beach, CA 90254. Public comment is only guaranteed to be taken in person at City Hall during the meeting or prior to the meeting by submitting an eComment for an item on the agenda. As a courtesy only, the public may view and participate on action items listed on the agenda via the following:

Zoom: https://us02web.zoom.us/j/89968207828?
pwd=bXZmWS83dmxHWDZLbWRTK2RVaUxaUT092
•
• Phone: Toll Free: (833) 548 0276; Meeting ID: 899 6820 7828, then #; Passcode: 472825 • Comment: Submit an eComment no later than three (3) hours before the meeting start time.

Supplemental Email: Supplemental emails are available for agenda items only and must be sent to [email protected]. Supplemental emails should indicate the agenda item and meeting date in the subject line and must be received no later than three (3) hours before the meeting start time. Emails received after the deadline but before the meeting ends will be posted to the agenda the next business day.
•
Please be advised that while the City will endeavor to ensure these remote participation methods are available, the City does not guarantee that they will be technically feasible or work all the time.

Further, the City reserves the right to terminate these remote participation methods (subject to Brown Act restrictions) at any time and for whatever reason. Please attend in person or by submitting an eComment to ensure your public participation.

Similarly, as a courtesy, the City will also plan to broadcast the meeting via the following listed mediums. However, these are done as a courtesy only and not guaranteed to be technically feasible.

Thus, in order to guarantee live time viewing and/or public participation, members of the public shall attend in Council Chambers.
• Cable TV: Spectrum Channel 8 and Frontier Channel 31 in Hermosa Beach • YouTube: https://www.youtube.com/c/CityofHermosaBeach90254 • Live Stream: www.hermosabeach.gov/agenda
• Cablecast App: Available on supported devices and smart TVs If you experience technical difficulties while viewing a meeting on any of our digital platforms, please try another viewing option. View City Council staff reports and attachments at www.hermosabeach.gov/agenda.

Pages

1. CLOSED SESSION—CALL TO ORDER 5:00 PM

2. ROLL CALL

3. PUBLIC COMMENT ON THE CLOSED SESSION AGENDA
This Public Comment period is limited to Closed Session agenda items only.

Public Comment is limited to three (3) minutes per speaker.

4. RECESS TO CLOSED SESSION

4.a MINUTES: Approval of minutes of Closed Session held on March 25, 2025

4.b PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Pursuant to Government Code section 54957
Title: City Attorney

5. OPEN SESSION—CALL TO ORDER 6:00 PM

6. PLEDGE OF ALLEGIANCE

7. ROLL CALL

8. CLOSED SESSION REPORT

9. ANNOUNCEMENTS—UPCOMING CITY EVENTS

10. APPROVAL OF AGENDA
This is the time for the City Council to discuss any changes to the order of agenda items.

Recommended Action:

To approve the order of the agenda.

11. PROCLAMATIONS / PRESENTATIONS

12. CITY MANAGER REPORT

12.a PUBLIC WORKS DIRECTOR UPDATE

12.b POLICE CHIEF UPDATE

13. PUBLIC COMMENT 10
This is the time for members of the public to address the City Council on any items within the Council's jurisdiction and on items where public comment will not be taken (City Manager Reports, City Councilmember Comments, Consent Calendar items not pulled for separate consideration, and Future Agenda Items).

The public is invited to attend and provide public comment. Public comments are limited to two minutes per speaker and shall only be taken from those present in City Council Chambers. No remote public comment will be taken during this time unless required by the Brown Act. A total of thirty minutes will be allocated to this initial public participation item. This time allotment may be modified due to time constraints at the discretion of the Mayor or City Council.

Another period is also reserved for general comment later in the meeting for those who could not be heard at this time.

No action will be taken on matters raised during public comment, except that the Council may take action to schedule issues raised during public comment for a future agenda. Speakers with comments regarding City management or departmental operations are encouraged to submit those comments directly to the City Manager. Members of the audience will have a future opportunity to speak on items pulled from the Consent Calendar for separate discussion, Public Hearings, and Municipal Matters when those items are heard.

14. CITY COUNCILMEMBER COMMENTS

14.a UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND

STANDING COMMITTEE DELEGATES/ALTERNATES

15. CONSENT CALENDAR
The following matters will be acted upon collectively with a single motion and vote to approve with the majority consent of the City Council. Councilmembers may orally register a negative vote on any Consent Calendar item without pulling the item for separate consideration before the vote on the Consent Calendar. There will be no separate discussion of these items unless a Councilmember removes an item from the Consent Calendar, either under Approval of the Agenda or under this item before the vote on the Consent Calendar. Items removed for separate discussion will be provided a separate public comment period.

Recommended Action:

To approve the consent calendar.

15.a WAIVE READING IN FULL OF ALL ORDINANCES AND

RESOLUTIONS ON THE AGENDA
Recommendation:

Staff recommends City Council waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

15.b CITY COUNCIL MEETING MINUTES - 25-CCO-021 27
(City Clerk Myra Maravilla)

Recommended Action:

Staff recommends City Council approve the minutes for the March 25, 2025 Regular Meeting.

15.c VACANCY ON THE BUILDING BOARD OF APPEALS—AUTHORIZE ADVERTISEMENT AND SCHEDULE APPLICANT INTERIVEWS - 25-
CCO-018
39 (City Clerk Myra Maravilla)
Recommended Action:

Staff recommends City Council:

Direct staff to advertise and solicit applications for one vacancy on the Building Board of Appeals for an undefined term, to serve at the pleasure of the City Council; and

1. Schedule applicant interviews to be held prior to the regular City Council meeting on Tuesday, May 27, 2025, with the option to make an appointment at the same meeting.

2. 15.d RENEWAL OF GENERAL SERVICES AGREEMENT BETWEEN THE CITY OF HERMOSA BEACH AND LOS ANGELES COUNTY - 25-
CMO-028
43 CEQA: Determine the renewal of the General Services Agreement is exempt from the California Environmental Quality Act.
(Deputy City Manager Angela Crespi)
Recommended Action:

Staff recommends City Council adopt a resolution (Attachment 1) authorizing the Mayor to execute a five-year General Services Agreement between the City of Hermosa Beach and Los Angeles County (Attachment 2).

15.e CHECK REGISTERS - 25-AS-031 66
(Administrative Services Director Brandon Walker)
Recommended Action:

Staff recommends City Council ratify the following check registers for the period March 19, 2025 through March 26, 2025. The Administrative Services Director certifies the accuracy of the attached demands.

15.f FISCAL YEAR 2023–2024 ANNUAL COMPREHENSIVE FINANCIAL

REPORT (INCLUDING REPORT FROM INDEPENDENT AUDITOR) -
25-AS-033
91 (Administrative Services Director Brandon Walker)
Recommended Action:

Staff recommends City Council receive and file the FY 2023–24 Annual Comprehensive Financial Report (ACFR) (Attachment 1), which includes the report from Gruber and Lopez, Inc., the City’s independent auditors.

15.g SIDE LETTER TO THE MANAGEMENT EMPLOYEES’
MEMORANDUM OF UNDERSTANDING - 25-AS-032
291
(Human Resources Manager Tiffany Nguyen)
Recommended Action:

Staff recommends City Council approve the Resolution and Side Letter to the Management Employees’ Memorandum of Understanding (Attachment 1).

15.h ACTION MINUTES OF THE PARKS, RECREATION, AND

COMMUNITY RESOURCES ADVISORY COMMISSION MEETING OF
MARCH 4, 2025 - 25-CR-033
298
(Community Resources Director Lisa Nichols)
Recommended Action:

Staff recommends City Council receive and file the action minutes of the Parks, Recreation, and Community Resources Advisory Commission meeting of March 4, 2025.

15.i APPROVE AN AMENDMENT TO MEMORANDUM OF

UNDERSTANDING BETWEEN THE BEACH CITIES WATERSHED

MANAGEMENT GROUP FOR IMPLEMENTATION OF THE

COORDINATED INTEGRATED MONITORING PROGRAM (CIMP) -
25-CMO-026
302
(Environmental Programs Manager Douglas Krauss)
Recommended Action:

Staff recommends City Council:

Approve an amendment to a Memorandum of Understanding
(MOU) regarding the Administration and Cost Sharing for Coordination and Implementation of the Coordinated Integrated Monitoring Program (CIMP) for the Beach Cities Watershed Management Group (WMG) (Attachment 1) to extend the term of the agreement through December 31, 2026, with the option to further extend the term in increments of one calendar year at a time, up to two additional years; and

1. Authorize the Mayor to execute and the City Clerk to attest to the proposed amendment, subject to approval by the City Attorney.

2. 15.j ADOPTION OF A RESOLUTION APPROVING FINAL MAP NO. 83937

FOR AN ADDITION TO AN EXISTING CONDOMINIUM LOCATED AT
705 2ND STREET - 25-CDD-055
439
CEQA: Determine that the project is categorically exempt from the California Environmental Quality Act
(Associate Planner Jake Whitney)

Recommended Action:

Determine that the project is exempt from the California Environmental Quality Act;

1. Adopt a resolution (Attachment 1) approving Final Parcel Map No. 83937 (Attachment 2), which is consistent with the
approved Vesting Tentative Parcel Map; and

2. 3. Authorize the City Clerk to endorse the certificate for said map.

16. PUBLIC HEARINGS—TO COMMENCE AT 6:30 P.M

16.a REQUEST FOR A ZONING TEXT AMENDMENT (TA 25-01),

PERTAINING TO THE REGULATION OF TEMPORARY USES AND

EVENTS ON PRIVATE PROPERTY, AMENDING HERMOSA BEACH
MUNICIPAL CODE (HBMC): 1) CHAPTER 17.04 - 25-CDD-054
447
REGARDING DEFINITIONS; 2) CHAPTER 17.28 REGARDING M-1
LIGHT MANUFACTURING ZONE; AND 3) CHAPTER 17.42

REGARDING GENERAL PROVISIONS, CONDITIONS AND
EXCEPTIONAL USES.

CEQA: The project qualified for a Categorical Exemption per Section 15061(b)(3) of the California Environmental Quality Act Guidelines. (Planning Manager Alexis Oropeza)
Recommended Action:

Staff recommends City Council:

Conduct a public hearing to consider amendments to Hermosa Beach Municipal Code pertaining to temporary use and
temporary events;

1. Determine whether the project is exempt from the California Environmental Quality Act; and

2. Introduce by title only and waive first reading of an Ordinance of the City of Hermosa Beach, California, approving Zoning Text Amendment (25-01) (Attachment 1).

3. 17. MUNICIPAL MATTERS

17.a REVIEW OF DAY AT THE BEACH EVENTS’ REQUEST FOR A NEW AGREEMENT FOR THE HERMOSA BEACH OPEN IN 2025
THROUGH 2027 - 25-CR-034
500
CEQA: Review of Day at the Beach Events’ request for a new agreement would be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15304. This would have negligible or no permanent effect on the environment. (Community Resources Director Lisa Nichols)

Recommended Action:

Staff recommends City Council:

Receive and file the informational report of the comparing the terms of the approved Long-term Agreement (LTA) with Day at the Beach Events (DATBE) for the Hermosa Beach Open
(HBO) from 2025 through 2027 with those of an alternative agreement structure requested by DATBE, in which the City would serve as the event owner; and

1. 2. Provide direction to staff on next steps.

17.b RENAMING THE GREENBELT PEDESTRIAN TRAIL WITH A BENCH

DEDICATED TO THE ACCESS HERMOSA WORKING GROUP AND

IN MEMORIAM OF GEOFF HIRSCH AND CASEY ROHRER, AND

RENAMING THE SOUTH PARK ACCESSIBLE PLAYGROUND IN
HONOR OF CASEY ROHRER - 25-CR-035
526
CEQA: Approval of the renaming of the Greenbelt Pedestrian Trail and South Park Accessible Playground would be exempt from the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15304. The proposed renaming of each facility will have negligible or no permanent effect on the environment.
(Community Resources Director Lisa Nichols)
Recommended Action:

Staff recommends City Council:

Receive and file the Greenbelt Pedestrian Trail and South Park Accessible Playground Renaming Joint Subcommittee
(Subcommittee) Report (Attachment 1);

1. Adopt a resolution renaming the Greenbelt Pedestrian Trail from Pier Avenue to 8th Street to the Greenbelt Accessible Trail (Attachment 2);

2. Approve the installation of a bench and plaque on the Greenbelt Pedestrian Trail dedicated to the Access Hermosa Working Group and in memoriam of Geoff Hirsch and Casey Rohrer; and

3. Per the Parks, Recreation, and Community Resources Advisory Commission (Commission) recommendation:

4. Adopt a resolution renaming the South Park accessible playground in honor of Casey Rohrer (Attachment 3); and a.

Approve the installation of a commemorative plaque on an existing bench near the South Park accessible playground. b.

17.c APPROVAL OF A PROFESSIONAL SERVICES AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC., TO PROVIDE CROSSING GUARD SERVICES - 25-PD-005
560
(Police Chief Paul LeBaron)

Recommended Action:

Staff recommends City Council:

Approve a Professional Services Agreement (Attachment 3) with All City Management Services, Inc., to provide crossing guard services at an annual not-to-exceed amount of $315,315 for year one and a three-year term, beginning July 1, 2025 and ending July 1, 2028;

1. Authorize the City Manager to extend up to two one-year terms; and

2. Authorize the City Manager to execute and the City Clerk to attest to the proposed agreement, subject to approval by the City Attorney.

3. 17.d CONSIDERATION OF A RESOLUTION EXPRESSING OPPOSITION FOR SENATE BILL 79 (WIENER) - 25-CMO-029
654
(Deputy City Manager Angela Crespi)
Recommended Action:

Staff recommends City Council:

Consider adopting by title a resolution expressing opposition to Senate Bill 79 (Attachment 1); and

1. Authorize the Mayor to send a letter (Attachment 2) expressing the City’s position.

2. 18. FUTURE AGENDA ITEMS
This is the time for Councilmembers to schedule future agenda items and to ask questions about the status of previously approved future agenda items. No discussion, debate, or public comment will be taken. Councilmembers should consider the city's work plan when considering new items. The tentative future agenda items document is provided for information only.

18.a TENTATIVE FUTURE AGENDA ITEMS - 25-CMO-030 696
Attached is the current list of tentative future agenda items for Council’s information.

19. PUBLIC COMMENT
This time is set aside for the public to address the Council on any item of interest within the subject matter jurisdiction of the Council that could not be heard under the first public comment opportunity because there were too many prior public speakers and the thirty-minute maximum time limit was exhausted.

20. ADJOURNMENT

Outlook
Brown Act Violations and Demand for Inclusion in April 9, 2025 Agenda Packet From HermosaBeachPropertyOwner <[email protected]> Date Mon 4/7/2025 9:28 PM
To City Clerk <[email protected]>; Myra Maravilla <[email protected]> Cc [email protected] <[email protected]>; Councilmember Michael Keegan <[email protected]>; Councilmember Ray Jackson <[email protected]>; Councilmember Michael Detoy <[email protected]>; Mayor Pro Tem Rob Saemann <[email protected]>; [email protected] <[email protected]> 5 attachments (727 KB)
HB Commercially Zoned Parcel with Nonconforming Residential Uses - 2014 map.pdf; Letter to HBCC 4-7-25.pdf; CCC Steve Kinsey STVR Memo 12-6-16.pdf; CCC Steve Hudson STVR Memo 5-9-16.pdf; HB Coastal Zone Map.pdf; Some people who received this message don't often get email from [email protected]. Learn why this is important
To: City Clerk, City of Hermosa Beach
From: A Concerned Hermosa Beach Property Owner
Date: April 7, 2025
Dear City Clerk,
Please attach the enclosed public comment to the official agenda packet for the upcoming City Council meeting on Tuesday, April 9, 2025, and acknowledge its inclusion in the online public record.

This document rebuts numerous false, biased, and legally inaccurate claims made during the March 25, 2025 meeting regarding Short Term Vacation Rentals (STVRs). It also highlights serious violations of the Brown Act, undermining the fairness and transparency of the City’s proceedings.

The following violations and procedural failures demand immediate correction:

Brown Act Violations

1. Reading Mr. Higgins’ letter to the California Department of Housing and Community Development (HCD) aloud and verbatim despite it not appearing in the agenda packet • Citations: Gov. Code §§ 54954.2(a)(1) and 54957.5
• Summary: This letter introduced policy arguments against STVRs but was not made available to the public as required. At the same time, written public comments that favored STVRs were submitted on time but were ignored or omitted, violating the requirement for equal access and timely disclosure.

2. Omission of attorney Frank Angel’s timely written public comment • Citation: Gov. Code § 54954.3
• Summary: Mr. Angel submitted a written public comment by the stated deadline. His comment was initially excluded from the agenda packet, then added only after his complaint. As of April 7, 2025, at 7:30 PM, it has once again been removed.

3. Mr. Angel’s attempt to participate via Zoom was acknowledged by the City, and the mayor stated he would be called on again later, yet he was never allowed to speak—despite following all procedural instructions.

• Citation: Gov. Code §§ 54953(b) and 54954.3(a) (Public’s right to participate in teleconferenced meetings and to speak on agenda items)
• Summary: Mr. Angel was acknowledged by the mayor during public comment but never re-called after an unexplained technical failure. As Mr. Angel personally informed me, he followed all participation procedures correctly.

Legal Precedent Ignored
• Kracke v. Santa Barbara (2021) 63 Cal.App.5th 1089: Invalidated a local STVR ban enforced without Coastal Commission approval.
• Keen v. Manhattan Beach (2022): The STVR ban was struck down for violating Manhattan Beach’s certified Local Coastal Program (LCP). The ban had not been approved by the California Coastal Commission, making it unenforceable under the Coastal Act. Manhattan Beach ceased enforcement and now collects $1 million annually in TOT.
• Vurpillat Ruling (Hermosa Beach Hearing, 2024): The City’s own administrative hearing officer found Hermosa’s STVR ban unenforceable due to lack of Coastal Commission approval and refunded $5,500 to the homeowner.
• Steve Kinsey Memo (Coastal Commission Chair, December 6, 2016): Directly warned Hermosa that its ordinance would be unenforceable without a certified Local Coastal Program (LCP), or a Coastal Development Permit (CDP).
• Steve Hudson Letter (Coastal Commission Deputy Director, May 9, 2016): Submitted to the Hermosa Beach City Manager prior to the adoption of Ordinance 16-1365, this letter warned in no uncertain terms that the City’s STVR ban was a form of “development” under the Coastal Act and could not be enacted or enforced without Coastal Commission review and approval. The City Council dismissed this as merely a ‘staff opinion,’ yet multiple appellate courts have since confirmed the Coastal Commission’s interpretation.

Request for Action
Due to the above violations and misrepresentations, I request that:

1. The attached rebuttal be formally included in the public agenda packet.

2. The City Council agendize a public discussion to reconsider Hermosa Beach’s full STVR policy in light of binding precedent and Coastal Commission requirements.

3. The Council ensure that all future public comments—regardless of viewpoint—are disclosed, acknowledged, and treated equally in compliance with California law.

Respectfully submitted,
A Concerned Hermosa Beach Property Owner
Attachments:
• Full Rebuttal Letter (dated April 7, 2025)
• CCC Steve Kinsey STVR Memo 12-6-16
• CCC Steve Hudson STVR Memo 5-9-16
• HB Coastal Zone Map
• HB Commercially Zoned Parcel with Nonconforming Residential Uses – 2014 map Disclaimer:

I am not affiliated or represented by Frank Angel or Angel Law.

STATE OF CALIFORNIA—NATURAL RESOURCES AGENCY EDMUND G. BROWN, JR., GOVERNOR CALIFORNIA COASTAL COMMISSION 45 FREMONT, SUITE 2000
SAN FRANCISCO, CA 94105- 2219
VOICE (415) 904- 5200
FAX ( 415) 904- 5400
TDD (415) 597-5885

ATTACHMENT C
(Sent Individually via US Mail)
December 6, 2016
TO: Coastal Planning/Community Development Directors
SUBJECT: Short-Term/Vacation Rentals in the California Coastal Zone Dear Planning/Community Development Director:

Your community and others state and nationwide are grappling with the use of private residential areas for short-term overnight accommodations. This practice, commonly referred to as vacation rentals (or short-term rentals), has recently elicited significant controversy over the proper use of private residential stock within residential areas. Although vacation rentals have historically been part of our beach communities for many decades, the more recent introduction of online booking sites has resulted in a surge of vacation rental activity, and has led to an increased focus on how best to regulate these rentals.

The Commission has heard a variety of viewpoints on this topic. Some argue that private residences should remain solely for the exclusive use of those who reside there in order to foster neighborhood stability and residential character, as well as to ensure adequate housing stock in the community.

Others argue that vacation rentals should be encouraged because they often provide more affordable options for families and other coastal visitors of a wide range of economic backgrounds to enjoy the California coastline. In addition, vacation rentals allow property owners an avenue to use their residence as a source of supplemental income. There are no easy answers to the vexing issues and questions of how best to regulate short-term/vacation rentals. The purpose of this letter is to provide guidance and direction on the appropriate regulatory approach to vacation rentals in your coastal zone areas moving forward.

First, please note that vacation rental regulation in the coastal zone must occur within the context of your local coastal program (LCP) and/or be authorized pursuant to a coastal development permit (CDP). The regulation of short-term/vacation rentals represents a change in the intensity of use and of access to the shoreline, and thus constitutes development to which the Coastal Act and LCPs must apply. We do not believe that regulation outside of that LCP/CDP context (e.g., outright vacation rental bans through other local processes) is legally enforceable in the coastal zone, and we strongly encourage your community to pursue vacation rental regulation through your LCP.

The Commission has experience in this arena, and has helped several communities develop successful LCP vacation rental rules and programs (e.g., certified programs in San Luis Obispo and

Short-Term/Vacation Rentals in the California Coastal Zone term Page 2 Santa Cruz Counties going back over a decade; see a summary of such LCP ordinances on our website at:
https://documents.coastal.ca.gov/assets/la/Sample_of_Commission_Actions_on_Short_Term_Rentals .pdf ). We suggest that you pay particular attention to the extent to which any such regulations are susceptible to monitoring and enforcement since these programs present some challenges in those regards. I encourage you to contact your local district Coastal Commission office for help in such efforts.

Second, the Commission has not historically supported blanket vacation rental bans under the Coastal Act, and has found such programs in the past not to be consistent with the Coastal Act. In such cases the Commission has found that vacation rental prohibitions unduly limit public recreational access opportunities inconsistent with the Coastal Act. However, in situations where a community already provides an ample supply of vacation rentals and where further proliferation of vacation rentals would impair community character or other coastal resources, restrictions may be appropriate. In any case, we strongly support developing reasonable and balanced regulations that can be tailored to address the specific issues within your community to allow for vacation rentals, while providing appropriate regulation to ensure consistency with applicable laws. We believe that appropriate rules and regulations can address issues and avoid potential problems, and that the end result can be an appropriate balancing of various viewpoints and interests. For example, the Commission has historically supported vacation rental regulations that provide for all of the following:
 Limits on the total number of vacation rentals allowed within certain areas (e.g., by neighborhood, by communitywide ratio, etc.).
 Limits on the types of housing that can be used as a vacation rental (e.g., disallowing vacation rentals in affordable housing contexts, etc.).  Limits on maximum vacation rental occupancies.
 Limits on the amount of time a residential unit can be used as a vacation rental during a given time period.
 Requirements for 24-hour management and/or response, whether onsite or within a certain distance of the vacation rental.
 Requirements regarding onsite parking, garbage, and noise.  Signage requirements, including posting 24-hour contact information, posting requirements and restrictions within units, and incorporating operational requirements and violation consequences (e.g., forfeit of deposits, etc.) in rental agreements.  Payment of transient occupancy tax (TOT).
 Enforcement protocols, including requirements for responding to complaints and enforcing against violations of vacation rental requirements, including providing for revocation of vacation rental permits in certain circumstances.

These and/or other provisions may be applicable in your community. We believe that vacation rentals provide an important source of visitor accommodations in the coastal zone, especially for larger

Short-Term/Vacation Rentals in the California Coastal Zone term Page 3 families and groups and for people of a wide range of economic backgrounds. At the same time we also recognize and understand legitimate community concerns associated with the potential adverse impacts associated with vacation rentals, including with respect to community character and noise and traffic impacts. We also recognize concerns regarding the impact of vacation rentals on local housing stock and affordability. Thus, in our view it is not an ‘all or none’ proposition. Rather, the Commission’s obligation is to work with local governments to accommodate vacation rentals in a way that respects local context. Through application of reasonable enforceable LCP regulations on such rentals, Coastal Act provisions requiring that public recreational access opportunities be maximized can be achieved while also addressing potential concerns and issues.

We look forward to working with you and your community to regulate vacation rentals through your LCP in a balanced way that allows for them in a manner that is compatible with community character, including to avoid oversaturation of vacation rentals in any one neighborhood or locale, and that provides these important overnight options for visitors to our coastal areas. These types of LCP programs have proven successful in other communities, and we would suggest that their approach can serve as a model and starting place for your community moving forward. Please contact your local district Coastal Commission office for help in such efforts.

Sincerely,
STEVE KINSEY, Chair
California Coastal Commission

Dear Mayor, City Council, Attorney Patrick Donegan and Staff:

I respectfully submit the following corrections to a series of statements, many of them misleading, biased, disingenuous, or legally inaccurate, made during the March 25, 2025, City Council discussion on Short Term Vacation Rentals (STVRs).

These statements risk creating a false public understanding of the City’s obligations under the Coastal Act and promote a misleading narrative to residents that vilifies STVRs as inherently harmful.

City Attorney Patrick Donegan:
"…You can impose any operational standard you want, like physical presence…" Correction: This assertion ignores legal limits.

Changing the operational intensity or character of residential coastal properties (such as requiring an owner to be physically present) constitutes a “development” under the Coastal Act, as defined in Public Resources Code § 30106, and therefore requires approval through a Coastal Development Permit (CDP) or a certified Local Coastal Program (LCP) amendment.

This interpretation was affirmed in Kracke v. City of Santa Barbara (2021) 63 Cal.App.5th 1089, where the court held that the City’s decision to eliminate STVRs in the Coastal Zone without a CDP or LCP amendment violated the Coastal Act.

Relevant authority: Kracke v. Santa Barbara (2021) 63 Cal.App.5th 1089; California Coastal Commission guidance memo from Chair Steve Kinsey (December 6, 2016), confirming STVR regulation in the Coastal Zone must occur through a certified Local Coastal Program or Coastal Development Permit.
"…This is not the first time we have been sued... the City was triumphant…" Correction: The “triumph” refers only to a preliminary ruling from 2018 that was never tested under current law.

Since then, two published appellate decisions, Keen v. City of Manhattan Beach (2022) and Kracke v. City of Santa Barbara (2021), have firmly established that local bans on STVRs in the Coastal Zone are unenforceable without Coastal Commission approval through a LCP amendment or a CDP.

These rulings are binding on all jurisdictions subject to the Coastal Act, including any city with land in the Coastal Zone.

They directly contradict the City Attorney’s continued assertion of ordinance validity.

Hermosa’s STVR ban has never received Coastal Commission certification, and its enforcement within the Coastal Zone is not just vulnerable, it is indefensible under controlling law.

This legal reality was echoed in the Vurpillat ruling, where the City’s own administrative hearing officer, Attorney Steve Napolitano, determined that Hermosa’s STVR ban is unenforceable in the Coastal Zone due to lack of Coastal Commission approval, and ordered the City to refund a $5,500 fine imposed on the property owner. "…The lawsuit has nothing to do with what we might do here..." Correction: The ordinance currently in effect was enacted without Coastal Commission approval and is the direct subject of the ongoing lawsuit.

For the City Attorney to suggest that the March 25 discussion was unrelated to the litigation is recklessly untrue.

The legal challenge exists precisely because the City bypassed the required process of obtaining a CDP or certified LCP, and is now enforcing an illegal and unenforceable ordinance that blatantly violates the Coastal Act.

Councilmember Mike Detoy:
"…We already allow STVRs in the commercial zone, as the City Attorney mentioned, move to receive and file…"
Correction: This maneuver appeared designed to shut down debate on an unresolved legal issue, despite the ordinance's ongoing noncompliance with the Coastal Act and clearly established legal precedent.

By reducing the matter to the existence of 20 STVRs permitted in commercial zones, Councilmember Detoy presented a misleadingly narrow frame that ignores both the ordinance’s procedural defects and its lack of Coastal Commission approval, a requirement explicitly conveyed to the City in the December 6, 2016, memorandum from then Coastal Commission Chair Steve Kinsey. (see attached) Using a motion to "receive and file" under these circumstances projects a premature sense of closure and risks misleading the public into believing Hermosa Beach is in lawful compliance.

I respond in greater detail below to the substance of this claim as later repeated, and expanded upon, by Councilmember Jackson.

Mayor Pro-Tem Michael D. Keegan:
"…We crafted a sensible STVR program..."
Correction: A program crafted without Coastal Commission review or certification cannot be considered “sensible” under state law.

It exposes the city to multiple lawsuits, as demonstrated by Koerner v. Hermosa Beach and the Vurpillat refund ruling.

Councilmember Ray Jackson:

Reading aloud Mr. Higgins’ letter to the HCD, which discouraged the City from legalizing or expanding short-term rentals in the Coastal Zone, despite the fact that it was not included in the official meeting packet
Correction: This clearly violated the Brown Act, specifically Government Code §§ 54954.2(a)(1) and 54957.5.

The letter from Mr. Higgins to the HCD was not part of the publicly posted agenda packet, yet it was read aloud during the meeting, introducing policy commentary into the Council’s discussion without proper public disclosure.

Section 54954.2(a)(1) requires that materials influencing deliberations be included in the agenda, and section 54957.5 mandates that all documents distributed to the Council also be made available to the public at the same time.

The letter was not part of the public agenda packet and was read aloud without giving equal time to opposing viewpoints, including two timely submitted public comments, one that was ignored and another that was omitted entirely from the meeting record.

This denied the public equal access and undermined the principles of transparency and fairness that the Brown Act was designed to protect.
"…STVRs cause documented housing harm…"
Correction: No evidence was cited to support this claim.

Nearly all STVRs in Hermosa are luxury beachfront properties, priced well above what an average wage earner in the area could afford to rent or own, with or without a housing shortage.

These are multi-million-dollar homes that have never been viable options for teachers, first responders, service workers, or young families seeking to live close to where they work.

Restricting STVRs in this area will not create affordable housing in these high-value areas.
"…148 potential STVRs exist in the commercial zone…"
Correction: Only 10 permits for 20 STVRs have been issued.

That equates to just 0.2 percent of the City’s housing stock, practically a rounding error.

Many of the remaining 128 “eligible” properties are either not near the beachfront or are not viable STVR candidates.

In addition, not all homeowners in the Commercial Zone will ever convert their properties to short-term rentals.

Some may choose to live in their own homes, others may prefer to keep reliable longterm tenants, and many may not want the added responsibility and complexity of operating an STVR.

Limiting STVRs exclusively to the commercial zone undermines the Coastal Act’s mandate to provide broad public access to coastal accommodations, particularly near the shoreline.

The problem is not just the low number of legal STVRs, but the narrow geography where they are permitted. Hermosa Beach has only 148 potential STVR-eligible properties in its Commercial Zone, and not all of them fall within the Coastal Zone. (See attached Hermosa Beach Coastal Zone and Commercial Zone STVR map) To comply with the Coastal Act, Hermosa must both expand the area in the Coastal Zone where STVRs are permitted and implement a reasonable cap on the total number allowed.

One sensible proposal, submitted as a public comment and included in the City’s March 25 agenda packet, suggests allowing STVRs within a defined buffer zone, such as within one block of The Strand.

This approach would preserve the integrity of deeper residential neighborhoods while better aligning with the Coastal Commission’s mandate that coastal access be made broadly available to the public, not just commercial property owners. "…Operators evade taxes and safety inspections…"
Correction: Operators are barred from paying Transient Occupancy Tax (TOT) or passing safety inspections unless they receive a permit, which the City refuses to issue for residential Coastal Zone properties.

This creates a disingenuous false narrative of noncompliance. "…Powerful special interests profit from these rentals..." Correction: This is categorically false.

Each litigation challenging Hermosa Beach’s ordinance has been led entirely by individual homeowners, none of whom represent Airbnb, VRBO, or any corporate interest.

Airbnb and VRBO has, in the past, refused to enjoin homeowner’s lawsuits. "…Unregulated STVRs hollow out our housing stock…"
Correction: Councilmember Jackson cited 300 short-term rentals, likely referencing the Easy Reader article published two days after the meeting, which reported 320 listings in Hermosa Beach based on data from the aggregator site AirDNA.

The 320 listings represent approximately 3.4% of the housing stock.

Even if eliminated, as mentioned before, these high-value homes would remain unaffordable to typical renters.

There is no data demonstrating that allowing STVRs increases housing scarcity in Hermosa Beach.

Throughout the meeting, multiple Councilmembers emphasized the City’s duty to comply with mandates from the California Department of Housing and Community Development (HCD), while showing no such regard for equally binding directives from the Coastal Commission. This selective approach is legally untenable. The Commission formally warned Hermosa Beach in 2016 that its STVR ordinance was unenforceable without a certified LCP amendment or a CDP, a warning the City continues to disregard.

Consequences of the Council’s Current Position:

The Easy Reader article dated March 27, 2025, documents the Council's decision to fight the lawsuit Koerner v. Hermosa Beach.

By doing so, the City will now spend substantial taxpayer resources defending an ordinance that contradicts multiple published appellate decisions and violates the Coastal Act.

In the closely analogous Keen v. Manhattan Beach case, the City of Manhattan Beach was ordered to pay approximately $150,000 in attorney’s fees to the prevailing party, a figure that likely represented only a portion of the total litigation costs.

Hermosa’s exposure could easily exceed $300,000 if it continues down this path.

Manhattan Beach, after losing virtually the same lawsuit on appeal, chose a different path: they ceased enforcement, gained Coastal Commission compliance, and now earn over $1 million annually in TOT from STVRs.

Hermosa Beach could do the same, instead of pursuing a legally indefensible ordinance that invites costly litigation and undermines public access to the coast.

Requested Action:

Due to the false and misleading statements made during the March 25 meeting— statements that directly affect legal exposure, public understanding, and policy development—I respectfully request the Council:

1. Agendize an open public review of Hermosa Beach’s STVR ordinance;

2. Pause enforcement until a Coastal Commission-certified LCP or CDP is obtained;

3. Direct staff to initiate consultation with Coastal Commission Enforcement on a compliant permitting path.

4. Provide grandfathered STVRs a temporary mechanism to pay TOT, undergo safety inspections, and receive temporary operating permits — without risk of self-incrimination — while a Coastal Commission approved program is being developed.

Respectfully,
A Concerned Hermosa Beach Property Owner

5/10/16 AGENDA, ITEM 5a - TEXT AMENDMENT TO EXPRESSLY PROHIBIT SHORT-TERM RENTALS SUPPLEMENTAL LETTER FROM THE CALIFORNIA COASTAL COMMISSION SUBMITTED TO COMMUNITY DEVELOPMENT ON 5-9-16 AT 12:03PM

Palm Dr
Valley Dr
The Strand
Manhattan Ave
Ardmore Ave
Prospect Ave
Bay View Dr
Pacific Coast Hwy
Monterey Blvd
Beach Dr
7th St
8th Pl
5th St
25th St
10th St
6th St
Pier Ave
2nd St
14th St
Hermosa Ave
30th St
Harper Ave
31th St
32th Pl
16th St
Ocean Dr
29th St
28th St
Sunset Dr
Gould Ave
31th Pl
30th Pl
17th St
Alley
33th Pl
29th Ct
28th Ct
1st St
3rd St
7th Pl
Loma Dr
Aviation Blvd
8th St
24th Pl
33th St
9th St
27th St
4th St
1st Pl
Herondo St
Ozone Ct
24th St
Longfellow Ave
Artesia Blvd
21st St
13th St
26th St
15th St
19th St
34th St
Bonnie Brae St
Owosso Ave
Rhodes St
11th St
Ingleside Dr
20th St
Hillcrest Dr
Hollowell Ave
Oak St
Bard St
20th Pl
Gentry St
Myrtle Ave 27th Ct
Power St
Gould Ter
Reynolds Ln
1st Ct
35th Pl
Park Ave
22nd St
34th Pl
17th Ct
18th Ct
18th St
16th Ct
33rd St
15th Pl
Ava Ave
Porter Ln
19th Ct
11th Pl
14th Ct
Circle Dr
13th Ct
Cypress Ave
Lyndon St
9th Ct
Corona St
Valley Park Ave
11th Ct
15th Ct
8th Ct
12th Ct
20th Ct
Pier Plaza
10th Ct
7th Ct
Hopkins St
Culper Ct
Golden Ave
Silver St
6th Ct
35th St
Hill St
Pine St
Meyer Ct
El Oeste Dr
21st Ct
5th Ct
Massey Ave
Springfield Ave
Neptune
4th Ct
Amby Pl
Crest Dr
23rd St
Campana St
Ocean View Ave
3rd Ct
Barney Ct
Harper Ln
Marlita Pl
Borden Ave
Mira St
3rd St
21st St 21st St 21st St
Beach Dr
Hil cl rest Dr
7th St
13th St
4th St
3rd St
24th St
1st St
Longfellow Ave
3rd St
10th St
Cypress Ave
20th St
26th St
9th St
4th St
Bard St
11th St
11th Pl
19th St
25th St
9th St
Hermosa Ave
7th St
8th St
20th St
4th St
Golden Ave
15th St
11th St
18th St
30th Pl
Loma Dr
16th St
Oak St
18th St
Power St
Alley
6th St
Ardmore Ave
Beach Dr
17th St
19th St
Alley
5th St
2nd St
10th St
11th St
7th St
4th St
20th St
14th St
30th St
1st St
Loma Dr 24th St
1st Pl
11th St
Alley
24th St
1st St
24th Pl
19th St
6th St
34th Pl
Coastal Zone
City of Hermosa Beach
Parcels within Coastal Zone
Coastal Zone
± 1 inch equals 1,000 feet
72 The Strand #1
The Property

City of Hermosa Beach | Page 1 of 1
Meeting Date: April 8, 2025
Staff Report No. 25-CCO-021
Honorable Mayor and Members of the Hermosa Beach City Council

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

Staff recommends City Council approve the minutes for the March 25, 2025 Regular Meeting.

Attachments:

March 25, 2025 Regular Meeting
Respectfully Submitted by: Myra Maravilla, City Clerk
Approved: Suja Lowenthal, City Manager

1 CITY OF HERMOSA BEACH

CITY COUNCIL MEETING MINUTES
March 25, 2025
5:00 p.m.

Council Chambers
1315 Valley Drive
Hermosa Beach, CA 90254
Members Present: Mayor Dean Francois, Mayor Pro Tem Rob Saemann, Councilmember Mike Detoy, Councilmember Ray Jackson,
Councilmember Michael D. Keegan
Staff Present: City Manager Suja Lowenthal, City Attorney Patrick Donegan, Deputy City Manager Angela Crespi, Administrative Services Director Brandon Walker, City Clerk Myra Maravilla, Community Resources Director Lisa Nichols, Police Chief Paul LeBaron, Public Works Director Joe SanClemente, Deputy City Clerk Reanna Guzman, Planning Manager Alexis Oropeza
_____________________________________________________________________

1. CLOSED SESSION—CALL TO ORDER 5:00 PM
Mayor Francois called the Closed Session meeting to order at 5:01 p.m.

2. ROLL CALL
City Clerk Myra Maravilla announced a quorum.

3. PUBLIC COMMENT ON THE CLOSED SESSION AGENDA
Mayor Francois opened Public Comment. No public comment was provided.

4. RECESS TO CLOSED SESSION
The City Council recessed to Closed Session at 5:05 p.m.

4.a MINUTES: Approval of minutes of Closed Session held on March 11, 2025

4.b CONFERENCE WITH LEGAL COUNSEL

4.c CONFERENCE WITH LEGAL COUNSEL: GENERAL PUBLIC

LIABILITY LITIGATION

5. OPEN SESSION—CALL TO ORDER 6:00 PM
Mayor Francois called the Open Session to order at 6:16 p.m.

2 6. PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Paige Kaluderovic.

7. ROLL CALL
City Clerk Maravilla announced a quorum.

8. CLOSED SESSION REPORT
City Attorney Donegan provided the Closed Session Report. No reportable action was taken.

9. ANNOUNCEMENTS—UPCOMING CITY EVENTS
Mayor Francois announced the Spring Paper Shredding and Compost Giveaway for Earth Month on Saturday, April 5th from 8:00 a.m. to noon and the State of the City Address on Thursday, April 10 at 5:30 p.m.at the Community Theater.

10. APPROVAL OF AGENDA
Mayor Francois provided comments in support of hearing item 17.e and not continuing the item.

Motion 1
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
To approve the order of the agenda, pull Consent Calendar item 15.i and 15.j for separate discussion, continue item 17.a to the next meeting and, 17.e until the Final EIR is released. No vote was taken on this motion.

Substitute Motion 1
Moved by: Councilmember Jackson
Seconded by: Mayor Pro Tem Saemann
To table item 17.e until the Final EIR is released.

Ayes (3): Mayor Pro Tem Saemann, Councilmember Detoy, and Councilmember Jackson
Noes (2): Mayor Francois, and Councilmember Keegan
Motion Carried
Motion 2
Moved by: Councilmember Detoy
Seconded by: Mayor Pro Tem Saemann
To approve the agenda, remove items 15.i and 15.f for separate discussion and continue item 17.a.

3 Motion Carried

11. PROCLAMATIONS / PRESENTATIONS

11.a RECOGNIZING DAVID PEDERSEN FOR HIS SERVICE AS A

PLANNING COMMISSIONER
City Manager Lowenthal recognized David Pedersen on behalf of City staff. City Manager Lowenthal read a letter from former Community Development Director Carrie Tai into the record. A letter was also read from former Planning Commissioner Marie Rice.

Planning Commissioner Hoffman recognized David Pedersen.

Planning Commissioner Izant recognized David Pedersen.

Mayor Pro Tem Saemann recognized Rob Saemann.

City Treasurer David Pedersen shared a few words.

11.b LOS ANGELES COUNTY FIRE SERVICES AND MCCORMICK
AMBULANCE JULY–DECEMBER 2024 SEMI-ANNUAL REVIEW. - 25-
CMO-022
Emergency Management Coordinator Maurice Wright provided a presentation.

Councilmember Detoy provided comments about the improved times.

12. CITY MANAGER REPORT
City Manager Suja Lowenthal provided the City Manager Report.

12.a POLICE CHIEF UPDATE
Chief Paul LeBaron provided the Police Chief Update.

Mayor Francois provided comments about the accessibility mats on the beaches at 2nd & 22nd Street.

13. PUBLIC COMMENT
Mayor Francois opened Public Comment. The following public comment was provided:

In Person Public Comment:
• Sarah Harper
• Jenette M. Kurth
• Paige Kalvderovie
• Bob Wolfe

4 • Zein Obagi
• Richard Gotthoffer
• Wayne Craig
• Kimberly Gill
• Jim Rosenberger
• Colleen Villegas
• Chelsea Schreiber
• Niki Negrete-Mitchell
• Kevin Mitchell
• Yvonne Bernard
• Carolyn Petty

14. CITY COUNCILMEMBER COMMENTS
Mayor Francois provided comments about item 17.e.

Councilmember Detoy provided comments about Pay by App.

City Manager Lowenthal provided information.

14.a UPDATES FROM CITY COUNCIL AD HOC SUBCOMMITTEES AND

STANDING COMMITTEE DELEGATES/ALTERNATES
Mayor Francois attended the Los Angeles Sanitation Board Committee meeting and Assembly Member Al Muratsushi's Town Hall on e-bikes and bike enforcement.

15. CONSENT CALENDAR
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
To approve the Consent Calendar and hear items 15.f and 15.i separately.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried

15.a WAIVE READING IN FULL OF ALL ORDINANCES AND RESOLUTIONS

ON THE AGENDA
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson

5 To waive reading in full of all ordinances and resolutions on the agenda and declare that said titles which appear on the public agenda shall be determined to have been read by title and further reading waived.

Motion Carried

15.b CITY COUNCIL MEETING MINUTES - 25-CCO-017
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council approve the minutes for the March 11, 2025 Regular Meeting.

Motion Carried

15.c CHECK REGISTERS - 25-AS-025
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council ratify the check registers for the period February 27, 2025 through March 12, 2025. The Administrative Services Director certifies the accuracy of the attached demands.

Motion Carried

15.d CASH BALANCE REPORT - 25-AS-027
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council receive and file the February 2025 Cash Balance Report.

Motion Carried

15.e CITY TREASURER’S REPORT - 25-AS-026
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
The City Treasurer recommends City Council receive and file the February 2025 City Treasurer’s Report.

Motion Carried

15.g PLANNING COMMISSION TENTATIVE FUTURE AGENDA ITEMS - 25- CDD-052

6 Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council receive and file the April 15, 2025 Planning Commission tentative future agenda.

Motion Carried

15.h SUBJECT: FINAL MAP NO. 84202 (CUP, PDP No. 23-05)
LOCATION: 168 HILL STREET - 25-CDD-043
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
To determine that the Project is exempt from the California Environmental Quality Act; adopt Resolution No. RES-25-7476 approving Final Parcel Map No. 84202, which is consistent with the approved Vesting Tentative Parce Map; and authorize the City Clerk to endorse the certificate for said map.

Motion Carried

15.j ACTION MINUTES OF THE PUBLIC WORKS COMMISSION MEETING OF JANUARY 15, 2025 - 25-PW-022
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council receive and file the action minutes of the Public Works Commission meeting of January 15, 2025.

Motion Carried

15.k ADOPTION OF ORDINANCE REPEALING HERMOSA BEACH
MUNICIPAL CODE (“HBMC”) SECTIONS 12.28.010(H) AND 12.20.240 AND ADDING CHAPTER 12.40 TO THE HBMC REGULATING
CAMPING IN PUBLIC AREAS - 25-CA-006
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
To waive the full second reading and adopt by title only Ordinance No.

ORD-25-1486 of the City of Hermosa Beach, California, repealing Hermosa Beach Municipal Code (“HBMC”) sections 12.28.010(H) and

12.20.240 and adding Chapter 12.40 to the HBMC regulating camping in public areas and finding the ordinance is exempt from the California Environmental Quality Act (“CEQA”); and direct the City Clerk to print and publish a summary ordinance in a newspaper of general circulation within

7 15 days following adoption and post a copy on the City’s bulletin for 30 days.

Motion Carried

15.l APPROVE AND DIRECT THE CITY MANAGER TO ENTER INTO A

PUBLIC SERVICES CONTRACT WITH THE LOS ANGELES

DEPARTMENT OF PUBLIC HEALTH FOR PUBLIC HEALTH SERVICES

AND FINDING THE SAME EXEMPT FROM THE CALIFORNIA
ENVIRONMENTAL QUALITY ACT - 25-CMO-020
Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
Staff recommends City Council approve, authorize, and direct the City Manager to enter a Public Services Contract with the Los Angeles County Department of Public Health.

Motion Carried

15.f ACTION MINUTES OF THE PLANNING COMMISSION REGULAR
MEETING OF MARCH 18, 2025 - 25-CDD-053
Councilmember Keegan asked about the updated parking plan for the 24- Hour Fitness at 1601 PCH.

Planning Manager Alexis Oropeza provided information.

Virtual Public Comment:
• Kent Allen
Mayor Francois, Mayor Pro Tem Saemann, and Councilmember Keegan supported hearing the item at the City Council level.

Moved by: Councilmember Detoy
Seconded by: Mayor Pro Tem Saemann
To receive and file the action minutes of the Planning Commission regular meeting of March 18, 2025 and bring item 7.d to the City Council for deliberation.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried

15.i REVIEW OF SUBMITTAL OF THE 2024 HOUSING ELEMENT ANNUAL PROGRESS REPORT - 25-CDD-041
Planning Manager Oropeza provided a staff report.

8 Mayor Francois asked various questions.

Councilmember Keegan asked various questions.

In Person Public Comment:
• Richard Gotthoffer
• An unidentified male spoke
• Laura Pena
• David Grethen
Moved by: Councilmember Jackson
Seconded by: Mayor Pro Tem Saemann
To receive and file the 2024 Housing Element Annual Progress Report; and direct staff to submit the report to the California Department of Housing and Community Development.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried

16. PUBLIC HEARINGS—TO COMMENCE AT 6:30 P.M

16.a REQUEST FOR A ZONING TEXT AMENDMENT (TA 25-01),

PERTAINING TO THE REGULATION OF TEMPORARY USES AND
EVENTS ON PRIVATE PROPERTY, AMENDING HBMC: 1) CHAPTER

17.04 Item 16.a was continued to the April 8, 2025 City Council Meeting.

17. MUNICIPAL MATTERS

17.a RENAMING THE GREENBELT PEDESTRIAN TRAIL IN HONOR OF

GEOFF HIRSCH AND CASEY ROHRER AND THE SOUTH PARK
ACCESSIBLE PLAYGROUND IN HONOR OF CASEY ROHRER - 25-
CR-026
Item 17.a was continued to the April 8, 2025 City Council meeting to give the Naming Subcommittee another opportunity to meet.

17.b CAPITAL IMPROVEMENT PROGRAM STATUS REPORT AS OF
MARCH 13, 2025 - 25-PW-023
Item 17.d was heard before item 17.b.

Public Works Director Joe SanClemente provided a presentation.

Mayor Francois recessed for a five-minute break.

9 The meeting resumed at 9:16 p.m. City Clerk Maravilla conducted a roll call and all members were present.

Director SanClemente resumed his presentation.

Councilmember Jackson asked various questions.

In Person Public Comment:
• David Grethen
• Richard Gotthoffer
Virtual Public Comment:
• Kent Allen
• Laura Pena
Mayor Francois asked various questions.

Councilmember Detoy asked various questions.

Moved by: Councilmember Jackson
Seconded by: Councilmember Keegan
To move item 17.d before item 17.b.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried
Moved by: Councilmember Detoy
Seconded by: Councilmember Keegan
To receive and file the Capital Improvement Program Status Report as of March 13, 2025.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried

17.c MIDYEAR BUDGET REVIEW FISCAL YEAR 2024-25 - 25-AS-029 Administrative Services Director Brandon Walker provided a presentation.

Mayor Francois asked various questions.

Councilmember Detoy asked various questions.

Councilmember Jackson asked various questions.

10 Moved by: Councilmember Keegan
Seconded by: Councilmember Detoy
To approve the revisions to estimated revenue, appropriations, budget transfers, and fund balances as shown herein and in the attached Projected Change in Financial Position and the Midyear Budget Amendment; Transfer $553,832 of unspent funds from the Midyear Budget Review 2024–25 from the unassigned fund balance category to the assigned fund balance category; and receive and file the City Council Travel Summary.

Ayes (5): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, Councilmember Jackson, and Councilmember Keegan
Motion Carried

17.d REPORT ON THE CITY’S REGULATION OF SHORT-TERM VACATION RENTALS - 25-CA-007
City Attorney Donegan provided a staff presentation.

Mayor Francois asked various questions.

Public Speaker:
• Jonah Breslau
• Kena Castaneda
• David Grethen
• Claudia Aguilera
• Richard Gothoffer
Mayor Francois asked various questions.

Councilmember Keegan suggested supporting short-term rental regulations in a limited area and on a trial basis for owner-occupied properties.

Mayor Pro Tem Saemann provided comments.

Councilmember Jackson provided comments.

Mayor Francois provided comments.

Councilmember Keegan provided comments.

Moved by: Councilmember Detoy
Seconded by: Councilmember Jackson
To receive a report on the City’s short-term vacation rental ordinance.

11 Ayes (4): Mayor Francois, Mayor Pro Tem Saemann, Councilmember Detoy, and Councilmember Jackson
Noes (1): Councilmember Keegan
Motion Carried

17.e CONSIDERATION OF A POSITION ON LOS ANGELES COUNTY

METROPOLITAN TRANSPORTATION AUTHORITY C LINE
EXTENSION ROUTE INTO TORRANCE - 25-CMO-024
Item 17.e was continued until the Final EIR of the project is submitted.

18. FUTURE AGENDA ITEMS
Mayor Francois requested an informational item on Builders Remedy. Support was provided by Councilmember Keegan.

Councilmember Keegan directed the Planning Commission to revisit the Land Value Recapture program for small lots. Support was provided by Mayor Francois and Councilmember Detoy.

18.a TENTATIVE FUTURE AGENDA ITEMS - 25-CMO-025

19. PUBLIC COMMENT

20. ADJOURNMENT
The meeting was adjourned at 10:42 p.m.

City of Hermosa Beach | Page 1 of 3
Meeting Date: April 8, 2025
Staff Report No. 25-CCO-018
Honorable Mayor and Members of the Hermosa Beach City Council VACANCY ON THE BUILDING BOARD OF APPEALS—AUTHORIZE

ADVERTISEMENT AND SCHEDULE APPLICANT INTERIVEWS
(City Clerk Myra Maravilla)
Recommended Action:

Staff recommends City Council:

1. Direct staff to advertise and solicit applications for one vacancy on the Building Board of Appeals for an undefined term, to serve at the pleasure of the City Council; and

2. Schedule applicant interviews to be held prior to the regular City Council meeting on Tuesday, May 27, 2025, with the option to make an appointment at the same meeting.

Executive Summary:

On December 5, 2024, the Community Development Department received the resignation of Building Board of Appeals member David Garrett (Attachment 1). To fill the vacancy, Staff seeks Council direction to initiate the recruitment and appointment process for a new board member, for an undefined term at the discretion of the City Council.

Background:

Per Hermosa Beach Municipal Code Chapter 15.04.020, the Building Board of Appeals is established to hear and decide appeals of decisions, orders, or interpretations made by the Building Official regarding the application and interpretation of the City’s adopted Building Codes.

The Board of Appeals consists of five members who must be qualified by training and experience in building construction and may not be City employees. Members are appointed by the City Council and serve at its pleasure for undefined terms. The board adopts its own rules of procedure, issues written findings on appeals, and meets on an as-needed basis—typically on Mondays at 7:00 p.m. in the Council Chambers. The Community Development Department provides staff support.

Discussion:

In accordance with established procedures, staff recommends initiating the application process to fill one vacancy on the Building Board of Appeals. If authorized, the City Clerk will:

City of Hermosa Beach | Page 2 of 3
 Prepare a public notice to be physically posted and published in the Easy Reader on Thursday, April 17, 2025;
 Set the application deadline for Thursday, May 15, 2025, at 6:00 p.m.; and  Schedule applicant presentations and interviews during a special meeting prior to or during the regular meeting on Tuesday, May 27, 2025.

Environmental Review:

The advertisement and scheduling of applicant interviews is not a “project” subject CEQA” because it has no potential to result in either a direct, or reasonably foreseeable indirect, physical change in the environment. (State CEQA Guidelines, § 15378(a).) In the alternative, it falls within the “common sense” exemption set forth in State CEQA Guidelines section 15061(b)(3), which exempts activity from CEQA 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.”
General Plan Consistency:

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

Policies:
 1.1 Open meetings. Maintain the community’s trust by holding meetings in which decisions are being made, that are open and available for all community members to attend, participate, or view remotely.
 1.4: Consensus oriented. Strive to utilize a consensus-oriented decisionmaking process.  1.7 Diversity of representation. Strive to reflect a comprehensive crosssection of the community in appointments to Commission and Advisory Committees.

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

Policies
 2.3 Public participation guidelines. Establish parameters and guidelines to ensure public participation is promoted through diverse methods.  2.6 Responsive to community needs. Continue to be responsive to community inquiries, providing public information and recording feedback from community interactions
Fiscal Impact:

The estimated cost for the Easy Reader advertisement is $200. Sufficient funds are available in the City Clerk’s FY 2024–2025 department budget.

Attachment:

Resignation Letter from David Garrett

City of Hermosa Beach | Page 3 of 3
Respectfully Submitted by: Myra Maravilla, City Clerk
Concur: Guillermo Hobelman, Building Official
Concur: Alexis Oropeza, Planning Manager
Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Legal Review: Patrick Donegan, City Attorney
Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

City of Hermosa Beach | Page 1 of 3
Meeting Date: April 8, 2025
Staff Report No. 25-CMO-028
Honorable Mayor and Members of the Hermosa Beach City Council

RENEWAL OF GENERAL SERVICES AGREEMENT BETWEEN THE CITY OF

HERMOSA BEACH AND LOS ANGELES COUNTY
CEQA: Determine the renewal of the General Services Agreement is exempt from the California Environmental Quality Act.
(Deputy City Manager Angela Crespi)
Recommended Action:

Staff recommends City Council adopt a resolution (Attachment 1) authorizing the Mayor to execute a five-year General Services Agreement between the City of Hermosa Beach and Los Angeles County (Attachment 2).

Executive Summary:

The City of Hermosa Beach is party to an ongoing General Services Agreement (GSA) with Los Angeles County to provide miscellaneous and sundry services to the City on an as-needed and ongoing basis. The current agreement (Attachment 3) is scheduled to expire on June 30, 2025. To maintain the ability to receive services from the County and its various departments, the City must renew the existing standard agreement for a fiveyear period, commencing on July 1, 2025 through June 30, 2030.

Background:

The County of Los Angeles offers many services to local agencies through General Services Agreements. The GSA is general in nature and simply authorizes the County to provide services requested by a City. Services provided under the GSA consist of asneeded time-limited services such as predatory animal control, direct assessment collection, and a variety of public works services. Ongoing services, such as law enforcement and public health code enforcement, are provided by the responsible County departments through separate Specific Service Agreements (SSAs). Any SSAs between Hermosa Beach and the County of Los Angeles are not affected by renewal of this GSA.

Past Council Actions
Meeting Date Description
June 9, 2020
City Council approved the renewal of ongoing General
Services Agreement (GSA) with Los Angeles County to
provide miscellaneous and sundry services to the City on an as-needed and ongoing basis for a five-year period,
commencing on July 1, 2020 through June 30, 2025.

City of Hermosa Beach | Page 2 of 3
Discussion:

The County requests City Council adopt a resolution (Attachment 1) authorizing the Mayor to execute a renewal of the City’s multi-year General Services Agreement (Attachment 2). Contract language remains unchanged from the previous agreement. If approved, the Agreement would cover a five-year period from July 1, 2025 through June 30, 2030.

A list of the various services received by the City of Hermosa Beach and other Los Angles County agencies is included as Attachment 4 for reference.

Environmental Review:

The renewal of the general services agreement falls within the “common sense” exemption set forth in State CEQA Guidelines section 15061(b)(3), which exempts activity from CEQA 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.” 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:
 1.6 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.
 4.3 Collaboration with adjacent jurisdictions. Maintain strong collaborative relationships with adjacent jurisdictions and work together on projects of mutual interest and concern.

Fiscal Impact:

There is no fiscal impact associated with the recommended action. Services provided under the agreement are used as needed and, where required, are budgeted in the respective departmental budget(s).

Attachments:

1. Draft Resolution

2. County-City General Services Agreement

3. Current General Services Agreement

4. County Services Matrix

City of Hermosa Beach | Page 3 of 3
Respectfully Submitted by: Angela Crespi, Deputy City Manager Concur: Myra Maravilla, City Clerk
Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Legal Review: Patrick Donegan, City Attorney
Approved: Suja Lowenthal, City Manager

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CITY OF HERMOSA BEACH
RESOLUTION NO. RES-25-XXXX

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

AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A GENERAL

SERVICES AGREEMENT WITH LOS ANGELES COUNTY COVERING THE PERIOD FROM JULY 1, 2025 THROUGH JUNE 30, 2030
WHEREAS, the City of Hermosa Beach has been party to an ongoing General Services Agreement with Los Angeles County to provide miscellaneous services to the City on an ongoing basis; and,
WHEREAS, the current GSA is scheduled to expire on June 30, 2025 and the City desires to continue to receive similar services from the County in the future.

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

Section 1. That the City Council hereby authorizes the Mayor and City Clerk to execute the General Services Agreement with Los Angeles County for the period covering July 1, 2025 through June 30, 2030.

PASSED, APPROVED, and ADOPTED on this 8
th day of April, 2025.
______________________________________________________________________________ Dean Francois
President of the City Council and Mayor of the City of Hermosa Beach, CA Myra Maravilla, Patrick Donegan,
City Clerk City Attorney

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GENERAL SERVICES AGREEMENT
THIS GENERAL SERVICES AGREEMENT ("Agreement"), dated for purposes of reference only, July 1, 2025, is made by and between the County of Los Angeles, hereinafter referred to as the "County," and the City of Hermosa Beach, hereinafter referred to as the "City."
RECITALS:
(a) The City is desirous of contracting with the County for the performance by its appropriate officers and employees of City functions.
(b) The County is agreeable to performing such services on the terms and conditions hereinafter set forth.
(c) Such contracts are authorized and provided for by the provisions of Section 56½ of the Charter of the County of Los Angeles and Section 51300, et seq., of the Government Code.

THEREFORE, THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. The County agrees, through its officers, agents and employees, to perform those City functions, which are hereinafter provided for.

2. The City shall pay for such services as are provided under this Agreement at rates to be determined by the County Auditor-Controller in accordance with the policies and procedures established by the Board of Supervisors.

These rates shall be readjusted by the County Auditor-Controller annually effective the first day of July of each year to reflect the cost of such service in accordance with the policies and procedures for the determination of such rates as adopted by the Board of Supervisors of County.

3. No County agent, officer or department shall perform for said City any

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function not coming within the scope of the duties of such agent, officer or department in performing services for the County.

4. No service shall be performed hereunder unless the City shall have available funds previously appropriated to cover the cost thereof.

5. No function or service shall be performed hereunder by any County agent, officer or department unless such function or service shall have been requested in writing by the City on order of the City Council thereof or such officer as it may designate and approved by the Board of Supervisors of the County, or such officer as it may designate, and each such service or function shall be performed at the times and under circumstances which do not interfere with the performance of regular County operations.

6. Whenever the County and City mutually agree as to the necessity for any such County agent, officer or department to maintain administrative headquarters in the City, the City shall furnish at its own cost and expense all necessary office space, furniture, and furnishings, office supplies, janitorial service, telephone, light, water, and other utilities. In all instances where special supplies, stationery, notices, forms and the like must be issued in the name of the City, the same shall be supplied by the City at its expense.

It is expressly understood that in the event a local administrative office is maintained in the City for any such County agent, officer or department, such quarters may be used by the County agent, officer or department in connection with the performance of its duties in territory outside the City and adjacent thereto provided, however, that the performance of such outside duties shall not be at any additional cost to the City.

7. All persons employed in the performance of such services and functions for

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the City shall be County agents, officers or employees, and no City employee as such shall be taken over by the County, and no person employed hereunder shall have any City pension, civil service, or other status or right.

For the purpose of performing such services and functions, and for the purpose of giving official status to the performance hereof, every County agent, officer and employee engaged in performing any such service or function shall be deemed to be an agent, officer or employee of said City while performing service for the City within the scope of this agreement.

8. The City shall not be called upon to assume any liability for the direct payment of any salary, wages or other compensation to any County personnel performing services hereunder for the City, or any liability other than that provided for in this agreement.

Except as herein otherwise specified, the City shall not be liable for compensation or indemnity to any County employee for injury or sickness arising out of his or her employment.

9. The parties hereto have executed an Assumption of Liability Agreement approved by the Board of Supervisors on December 27, 1977 and/or a Joint Indemnity Agreement approved by the Board of Supervisors on October 8, 1991. Whichever of these documents the City has signed later in time is currently in effect and hereby made a part of and incorporated into this agreement as set out in full herein. In the event that the Board of Supervisors later approves a revised Joint Indemnity Agreement and the City executes the revised agreement, the subsequent agreement as of its effective date shall supersede the agreement previously in effect between the parties hereto.

10. Each County agent, officer or department performing any service for the

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City provided for herein shall keep reasonably itemized and in detail work or job records covering the cost of all services performed, including salary, wages and other compensation for labor, supervision and planning, plus overhead, the reasonable rental value of all County-owned machinery and equipment, rental paid for all rented machinery or equipment, together with the cost of an operator thereof when furnished with said machinery or equipment, the cost of all machinery and supplies furnished by the County, reasonable handling charges, and all additional items of expense incidental to the performance of such function or service.

11. All work done hereunder is subject to the limitations of the provisions of Section 23008 of the Government Code, and in accordance therewith, before any work is done or services rendered pursuant hereto, an amount equal to the cost or an amount 10% in excess of the estimated cost must be reserved by the City from its funds to ensure payment for work, services or materials provided hereunder.

12. The County shall render to the City at the close of each calendar month an itemized invoice which covers all services performed during said month, and the City shall pay County therefore within thirty (30) days after date of said invoice.

If such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County is entitled to recover interest thereon. Said interest shall be at the rate of seven (7) percent per annum or any portion thereof calculated from the last day of the month in which the services were performed.

13. Notwithstanding the provisions of Government Code Section 907, if such payment is not delivered to the County office which is described on said invoice within thirty (30) days after the date of the invoice, the County may satisfy such indebtedness,

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including interest thereon, from any funds of any such City on deposit with the County without giving further notice to said City of County's intention to do so.

14. This Agreement shall become effective on the date herein-above first mentioned and shall run for a period ending June 30, 2030, and at the option of the City Council of the City, with the consent of the Board of Supervisors of County, shall be renewable thereafter for an additional period of not to exceed five (5) years.

15. In the event the City desires to renew this Agreement for said five-year period, the City Council shall not later than the last day of May 2030, notify the Board of Supervisors of County that it wishes to renew the same, whereupon the Board of Supervisors, not later than the last day of June 2030, shall notify the City Council in writing of its willingness to accept such renewal. Otherwise, such Agreement shall finally terminate at the end of the aforedescribed period.

Notwithstanding the provisions of this paragraph herein-above set forth, the County may terminate this Agreement at any time by giving thirty (30) days' prior written notice to the City. The City may terminate this Agreement as of the first day of July of any year upon thirty (30) days' prior written notice to the County.

16. This Agreement is designed to cover miscellaneous and sundry services which may be supplied by the County of Los Angeles and the various departments thereof. In the event there now exists or there is hereafter adopted a specific contract between the City and the County with respect to specific services, such contract with respect to specific services shall be controlling as to the duties and obligations of the parties anything herein to the contrary notwithstanding, unless such special contract adopts the provisions hereof by reference.

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers.

Executed this _____________day of ________________________2025.

The City of Hermosa Beach,
By _____________________________
Mayor
ATTEST:

City Clerk THE COUNTY OF LOS ANGELES
By_____________________________ By_____________________________ Chair, Board of Supervisors
ATTEST:

EDWARD YEN
Executive Officer/Clerk
of the Board of Supervisors
By_____________________________
Deputy
APPROVED AS TO FORM:

DAWYN R. HARRISON
County Counsel
By ___________________________
Senior Deputy

SERVICES PROVIDED TO CITIES BY THE COUNTY OF LOS ANGELES (Via Agreement)
AGRICULTURAL COMM./WEIGHTS & MEASURES
Weed Abatement Predatory Animal (GSA or Contract) Vertebrate Pests (Contract) Noxious/Invasive Weeds Management (Contract) ANIMAL CARE & CONTROL (1)
Animal Control Animal Shelter Services

ASSESSOR
Maps Media (CD/DVD/Email)

AUDITOR-CONTROLLER
Direct Assessments Collections

BEACHES & HARBORS
(2)
Beach Maintenance Facility Maintenance

BOARD OF SUPERVISORS
JPA for Foothill Transit Corporation & Meetings Hearing Appeals-Civil Service Commission

CHIEF EXECUTIVE OFFICE
GSA/Assumption of Liability Agreements Local Homeless Services Programming (12)

CONSUMER AND BUSINESS AFFAIRS
Eviction Defense Services Wage Enforcement Services Immigrant Legal Services

DISTRICT ATTORNEY
City Prosecution Services Community Law Enforcement & Recovery (CLEAR) Community Prosecutor Program (CPP)

FIRE DEPARTMENT
(3)
Fire Suppression Services - Fee for Service Fire Suppression Services - Tax Share Beach Lifeguard Services GSA/MOU/Others Certified Unified Participating Agency Billing

HEALTH SERVICES
Housing and homelessness services Justice-related services Pregnancy-related support services INTERNAL SERVICES (4)
Telecommunication Services IT Services Energy and Environmental Programs SoCalREN-EES eGIS Services Fleet & Logistics Maintenance & Operations Ongoing Custodial services Ongoing Landscape services Ongoing Pest Control Program & Project Management Special Services - As Needed (Events, Paint, Signage, H

MENTAL HEALTH
Socialization Services (5) Mental Hlth Eval & Co-Response Team w/Police (6) Mental Health Evaluation Team & 1 FTE PSW (7)

PROBATION
Deputy Probation Officer Services

PUBLIC HEALTH
See Attachment I for Specific Services
PUBLIC LIBRARY(8)
Library Services

PUBLIC WORKS
See Attachment II for Specific Services

REGIONAL PLANNING
Planning & Zoning Services

REGISTRAR-RECORDER/COUNTY CLERK
(9)
Document Transfer Tax Collection
(12)
Real Property Index-View Election Management System Vital Records Data and Images Release of Voter Signature Files Access to YODA System (10)

SHERIFF'S DEPARTMENT
General Law Enforcement Traffic Law Enforcement Detective Services Helicopter Programs Special Occasions

TREASURER AND TAX COLLECTOR
Business License
Agoura Hills ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Alhambra ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Arcadia ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Artesia ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Avalon ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Azusa ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Baldwin Park ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Bell ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Bellflower ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Bell Gardens ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Beverly Hills ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Bradbury ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Burbank ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Calabasas ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Carson ▪ ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Cerritos ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Claremont ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Commerce ▪ ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Compton ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Covina ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Cudahy ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Culver City ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ * ▪ ▪ Diamond Bar ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Downey ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Duarte ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
El Monte ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ El Segundo ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Gardena ▪ ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Glendale ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Glendora ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hawaiian Gardens ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hawthorne ▪ ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hermosa Beach ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Hidden Hills ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Huntington Park ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

SERVICES PROVIDED TO CITIES BY THE COUNTY OF LOS ANGELES (Via Agreement)
AGRICULTURAL COMM./WEIGHTS & MEASURES
Weed Abatement Predatory Animal (GSA or Contract) Vertebrate Pests (Contract) Noxious/Invasive Weeds Management (Contract) ANIMAL CARE & CONTROL (1)
Animal Control Animal Shelter Services

ASSESSOR
Maps Media (CD/DVD/Email)

AUDITOR-CONTROLLER
Direct Assessments Collections

BEACHES & HARBORS
(2)
Beach Maintenance Facility Maintenance

BOARD OF SUPERVISORS
JPA for Foothill Transit Corporation & Meetings Hearing Appeals-Civil Service Commission

CHIEF EXECUTIVE OFFICE
GSA/Assumption of Liability Agreements Local Homeless Services Programming (12)

CONSUMER AND BUSINESS AFFAIRS
Eviction Defense Services Wage Enforcement Services Immigrant Legal Services

DISTRICT ATTORNEY
City Prosecution Services Community Law Enforcement & Recovery (CLEAR) Community Prosecutor Program (CPP)

FIRE DEPARTMENT
(3)
Fire Suppression Services - Fee for Service Fire Suppression Services - Tax Share Beach Lifeguard Services GSA/MOU/Others Certified Unified Participating Agency Billing

HEALTH SERVICES
Housing and homelessness services Justice-related services Pregnancy-related support services INTERNAL SERVICES (4)
Telecommunication Services IT Services Energy and Environmental Programs SoCalREN-EES eGIS Services Fleet & Logistics Maintenance & Operations Ongoing Custodial services Ongoing Landscape services Ongoing Pest Control Program & Project Management Special Services - As Needed (Events, Paint, Signage, H

MENTAL HEALTH
Socialization Services (5) Mental Hlth Eval & Co-Response Team w/Police (6) Mental Health Evaluation Team & 1 FTE PSW (7)

PROBATION
Deputy Probation Officer Services

PUBLIC HEALTH
See Attachment I for Specific Services
PUBLIC LIBRARY(8)
Library Services

PUBLIC WORKS
See Attachment II for Specific Services

REGIONAL PLANNING
Planning & Zoning Services

REGISTRAR-RECORDER/COUNTY CLERK
(9)
Document Transfer Tax Collection
(12)
Real Property Index-View Election Management System Vital Records Data and Images Release of Voter Signature Files Access to YODA System (10)

SHERIFF'S DEPARTMENT
General Law Enforcement Traffic Law Enforcement Detective Services Helicopter Programs Special Occasions

TREASURER AND TAX COLLECTOR
Business License
Industry ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Inglewood ▪ ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Irwindale ▪ ▪ ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Canada Flintridge ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ La Habra Heights ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Lakewood ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ La Mirada ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Lancaster ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ La Puente ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Verne ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Lawndale ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Lomita ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Long Beach ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Los Angeles ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ * ▪ ▪ ▪ ▪
Lynwood ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Malibu ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Manhattan Beach ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Maywood ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Monrovia ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Montebello ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Monterey Park ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Norwalk ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Palmdale ▪ ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Palos Verdes Estates ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Paramount ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Pasadena ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Pico Rivera ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Pomona ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ * ▪ ▪ Rancho Palos Verdes ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Redondo Beach ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ * ▪ Rolling Hills ▪ ▪ ▪ ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Rolling Hills Estates ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪

SERVICES PROVIDED TO CITIES BY THE COUNTY OF LOS ANGELES (Via Agreement)
AGRICULTURAL COMM./WEIGHTS & MEASURES
Weed Abatement Predatory Animal (GSA or Contract) Vertebrate Pests (Contract) Noxious/Invasive Weeds Management (Contract) ANIMAL CARE & CONTROL (1)
Animal Control Animal Shelter Services

ASSESSOR
Maps Media (CD/DVD/Email)

AUDITOR-CONTROLLER
Direct Assessments Collections

BEACHES & HARBORS
(2)
Beach Maintenance Facility Maintenance

BOARD OF SUPERVISORS
JPA for Foothill Transit Corporation & Meetings Hearing Appeals-Civil Service Commission

CHIEF EXECUTIVE OFFICE
GSA/Assumption of Liability Agreements Local Homeless Services Programming (12)

CONSUMER AND BUSINESS AFFAIRS
Eviction Defense Services Wage Enforcement Services Immigrant Legal Services

DISTRICT ATTORNEY
City Prosecution Services Community Law Enforcement & Recovery (CLEAR) Community Prosecutor Program (CPP)

FIRE DEPARTMENT
(3)
Fire Suppression Services - Fee for Service Fire Suppression Services - Tax Share Beach Lifeguard Services GSA/MOU/Others Certified Unified Participating Agency Billing

HEALTH SERVICES
Housing and homelessness services Justice-related services Pregnancy-related support services INTERNAL SERVICES (4)
Telecommunication Services IT Services Energy and Environmental Programs SoCalREN-EES eGIS Services Fleet & Logistics Maintenance & Operations Ongoing Custodial services Ongoing Landscape services Ongoing Pest Control Program & Project Management Special Services - As Needed (Events, Paint, Signage, H

MENTAL HEALTH
Socialization Services (5) Mental Hlth Eval & Co-Response Team w/Police (6) Mental Health Evaluation Team & 1 FTE PSW (7)

PROBATION
Deputy Probation Officer Services

PUBLIC HEALTH
See Attachment I for Specific Services
PUBLIC LIBRARY(8)
Library Services

PUBLIC WORKS
See Attachment II for Specific Services

REGIONAL PLANNING
Planning & Zoning Services

REGISTRAR-RECORDER/COUNTY CLERK
(9)
Document Transfer Tax Collection
(12)
Real Property Index-View Election Management System Vital Records Data and Images Release of Voter Signature Files Access to YODA System (10)

SHERIFF'S DEPARTMENT
General Law Enforcement Traffic Law Enforcement Detective Services Helicopter Programs Special Occasions

TREASURER AND TAX COLLECTOR
Business License
Rosemead ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
San Dimas ▪ ▪ ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ San Fernando ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ San Gabriel ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
San Marino ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Santa Clarita ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Santa Fe Springs ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Santa Monica ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ *
Sierra Madre ▪ ▪ ▪ ▪ ▪ ▪ ▪
Signal Hill ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
South El Monte ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ South Gate ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
South Pasadena ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Temple City ▪ ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Torrance ▪ ▪ ● ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Vernon ● ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Walnut ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
West Covina ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ West Hollywood ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Westlake Village ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ Whittier ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ TOTAL 58 8 14 6 44 44 25 38 81 2 2 0 22 86 8 1 2 1 80 1 1 12 47 11 31 6 49 16 58 86 18 69 66 54 60 11 52 36 27 65 86 1 15 1 9 87 49 88 1 88 2 2 2 3 5 42 42 42 23 76 3 5 The Department of Mental Health (DMH) contracts with the City of Gardena to provide socialization services. 7 DMH entered into a partnership through a Memorandum of Cooperative Agreement with the City of Burbank to develop a mental health evaluation team and one FTE psychiatric social worker for the provision of crisis mental health services. 8 The LA County Library has an MOU established with four cities, including Diamond Bar, Malibu, Manhattan Beach, and West Hollywood. The dot indicates County Library services are provided to these cities. 9 The Registrar-Recorder/County Clerk provides Document Transfer Tax Collection services to 88 cities in the County. It also provides election services to all cities through an approved City Council resolution and adopted by the Board of Supervisors. 10 The Registrar-Recorder/County Clerk's Your Online Document Archive (YODA) is in-house electronic archive system. 11 The Data Information Management System (DIMS) is a contracted-system that manages voter registration information. 12 A documentary transfer tax imposed in accordance with Revenue & Taxation Code sections 11911 through 11933. *Cities that have specific MOUs additional city codes to charge higher taxes so MOUs were developed to charge a per document fee for the additional processing.

Updated July 2024
2 The City of Los Angeles contracts with the Departments of Beaches & Harbors and Fire for maintenance and lifeguard services for four beaches located within the city through a Joint Powers Agreement (JPA) with the County.

Notes: ▪ A red dot indicates new services.
1 The Department of Animal Care & Control (DACC) provides Limited Field Services to Commerce, Culver City, El Monte, Gardena, Hawthorne, Huntington Park, La Puente, Lancaster, Lawndale, Monterey Park, Palos Verdes Estates, Redondo Beach and Torrance; and Limited Sheltering to Culver City, Gardena, Hawthorne, La Puente, Lawndale, Redondo Beach and West Hollywood. 6 DMH entered into a MOA with the Cities of Alhambra, Azusa, Bell, Bell Gardens, Covina, Culver City, Downey, Glendora, Huntington Park, Montebello, Monterey Park, Signal Hill, South Gate, Vernon, and West Covina police departments to develop mental health evaluation team and co-response models. 3 The Fire Department provides beach lifeguard services to the City of El Segundo through a contract with Chevron. 4 The Internal Services Department (ISD) provides IT services (mainframe access) for the City of Los Angeles and the City of Long Beach. IT services (eGis services) are provided to the following cities: Arcadia, Hawthorne, Redondo Beach, Santa Monica and Torrance and radio telecommunications services (CWIRS) to all 88 cities. ISD Fleet section provides fuel to San Bernardino County's Public Works department and the City of La Puente for the LASD Sheriff Station. ISD provides Mail Services to the City Halls of the City of Los Angeles and the City of Long Beach. The ISD Operations Support unit rebuilt a vertical split case pump for the City of Glendale's Water and Power. The ISD Power Plant provides chilled water for the A/C unit and heat for the Santa Clarita Library.

ISD also provides the Santa Clarita Library testing for the irrigation backflow.

ATTACHMENT I
PUBLIC HEALTH Ambulatory Outpatient Medical Services Benefits Specialty Services Biomedical HIV Prevention Black Infant Health Services Cal IVRS Data Services Children's Health Outreach, Enrollment, Utilization and Retention Employment & Education Services Enforcement Health Ordinance HIV and STD Prevention HIV Testing Social and Sexual Networks HIV Testing Storefront LAX Inspection of Facilities Medical Care Coordination Medical Point of Dispensing (MPOD) Onsite Wastewater Treatment Systems (LAMP) Public Health & Safety Inspection & Enforcement Services of Cannabis Facilities Public Health Emergency Preparedness and Response Services Securing the Cities Sustainment Program (STC) Transportation Agoura Hills ▪ ▪ ▪
Alhambra ▪ ▪
Arcadia ▪ ▪
Artesia ▪
Avalon ▪
Azusa ▪
Baldwin Park ▪
Bell ▪ ▪
Bellflower ▪
Bell Gardens ▪ ▪
Beverly Hills ▪ ▪
Bradbury ▪
Burbank ▪
Calabasas ▪
Carson ▪ ▪
Cerritos ▪
Claremont ▪
Commerce ▪ ▪
Compton ▪
Covina ▪
Cudahy ▪
Culver City ▪ ▪
Diamond Bar ▪
Downey ▪ ▪
Duarte ▪ ▪
El Monte ▪
El Segundo ▪
Gardena ▪ ▪
Glendale ▪ ▪
Glendora ▪ ▪
Hawaiian Gardens ▪
Hawthorne ▪
Hermosa Beach ▪ ▪
Hidden Hills ▪ ▪
Huntington Park ▪
Industry ▪
Inglewood ▪ ▪
Irwindale ▪
La Canada Flintridge ▪ ▪
La Habra Heights ▪ ▪
Lakewood ▪ ▪
La Mirada ▪
Lancaster ▪
La Puente ▪
La Verne ▪
Lawndale ▪
Lomita ▪ ▪
Long Beach ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Los Angeles ▪ ▪ ▪ ▪ ▪ ▪
Public Health - Page 1

PUBLIC HEALTH
Ambulatory Outpatient Medical Services Benefits Specialty Services Biomedical HIV Prevention Black Infant Health Services Cal IVRS Data Services Children's Health Outreach, Enrollment, Utilization and Retention Employment & Education Services Enforcement Health Ordinance HIV and STD Prevention HIV Testing Social and Sexual Networks HIV Testing Storefront LAX Inspection of Facilities Medical Care Coordination Medical Point of Dispensing (MPOD) Onsite Wastewater Treatment Systems (LAMP) Public Health & Safety Inspection & Enforcement Services of Cannabis Facilities Public Health Emergency Preparedness and Response Services Securing the Cities Sustainment Program (STC) Transportation Lynwood ▪
Malibu ▪
Manhattan Beach ▪ ▪
Maywood ▪
Monrovia ▪ ▪
Montebello ▪
Monterey Park ▪
Norwalk ▪ ▪
Palmdale ▪ ▪
Palos Verdes Estates ▪ ▪
Paramount ▪
Pasadena ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Pico Rivera ▪ ▪
Pomona ▪ ▪
Rancho Palos Verdes ▪ ▪
Redondo Beach ▪
Rolling Hills ▪
Rolling Hills Estates ▪
Rosemead ▪
San Dimas ▪
San Fernando ▪ ▪
San Gabriel ▪
San Marino ▪
Santa Clarita ▪ ▪
Santa Fe Springs ▪
Santa Monica ▪ ▪
Sierra Madre ▪
Signal Hill ▪
South El Monte ▪ ▪
South Gate ▪
South Pasadena ▪
Temple City ▪
Torrance ▪ ▪
Vernon
Walnut ▪
West Covina ▪
West Hollywood ▪
Westlake Village ▪
Whittier ▪ ▪
TOTAL 1 1 1 1 2 2 1 85 1 2 1 1 1 28 10 1 3 1 1
Public Health - Page 2
Notes: ▪ A red dot indicates new services.

ATTACHMENT II

PUBLIC WORKS
Bridge Inspection and/or Maintenance Building and Safety Storm Drain Catch Basin Cleanout Storm Drain Catch Basin Insert Maintenance City Pump Station Street Maintenance Industrial Waste Permit Issuance & Inspection (Transportation) Consolidated Sewer Maintenance District Safe, Clean Water Program Sewer Maintenance Contract Street Lighting Maintenance District Subdivision Maps: Final Subdivision Maps: Tentative Traffic Advisor Traffic Operations Maintenance Traffic Signal Maintenance Traffic Signal Maint. - Shared Intersections Underground Storage Tanks Infrastructure Design and Construction Traffic Monitoring Agoura Hills ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Alhambra ▪ ▪ ▪ ▪
Arcadia ▪ ▪ ▪ ▪ ▪ ▪ ▪
Artesia ▪ ▪ ▪ ▪ ▪ ▪ ▪
Avalon ▪ ▪
Azusa ▪ ▪ ▪ ▪ ▪ ▪
Baldwin Park ▪ ▪ ▪ ▪ ▪ ▪
Bell ▪ ▪ ▪ ▪
Bellflower ▪ ▪ ▪ ▪ ▪ ▪
Bell Gardens ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Beverly Hills ▪ ▪ ▪ ▪ ▪
Bradbury ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Burbank ▪ ▪ ▪ ▪
Calabasas ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Carson ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Cerritos ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Claremont ▪ ▪ ▪ ▪
Commerce ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Compton ▪ ▪ ▪ ▪ ▪ ▪
Covina ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Cudahy ▪ ▪ ▪ ▪ ▪ ▪ ▪
Culver City ▪ ▪ ▪ ▪ ▪ ▪
Diamond Bar ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Downey ▪ ▪ ▪ ▪
Duarte ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
El Monte ▪ ▪ ▪ ▪ ▪
El Segundo ▪ ▪ ▪ ▪ ▪ ▪ ▪
Gardena ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Glendale ▪ ▪ ▪ ▪ ▪ ▪
Glendora ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hawaiian Gardens ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hawthorne ▪ ▪ ▪ ▪ ▪ ▪ ▪
Hermosa Beach ▪ ▪ ▪ ▪ ▪
Hidden Hills ▪ ▪ ▪ ▪ ▪ ▪
Huntington Park ▪ ▪ ▪ ▪ ▪ ▪
Industry ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Inglewood ▪ ▪ ▪ ▪
Irwindale ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Canada Flintridge ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Habra Heights ▪ ▪ ▪ ▪ ▪ ▪ ▪
Lakewood ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Mirada ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Lancaster ▪ ▪ ▪ ▪ ▪
La Puente ▪ ▪ ▪ ▪ ▪ ▪ ▪
La Verne ▪ ▪ ▪ ▪ ▪ ▪
Lawndale ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Lomita ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Long Beach ▪ ▪ ▪ ▪ ▪
Los Angeles ▪ ▪ ▪
Public Works - Page 1

PUBLIC WORKS
Bridge Inspection and/or Maintenance Building and Safety Storm Drain Catch Basin Cleanout Storm Drain Catch Basin Insert Maintenance City Pump Station Street Maintenance Industrial Waste Permit Issuance & Inspection (Transportation) Consolidated Sewer Maintenance District Safe, Clean Water Program Sewer Maintenance Contract Street Lighting Maintenance District Subdivision Maps: Final Subdivision Maps: Tentative Traffic Advisor Traffic Operations Maintenance Traffic Signal Maintenance Traffic Signal Maint. - Shared Intersections Underground Storage Tanks Infrastructure Design and Construction Traffic Monitoring Lynwood ▪ ▪ ▪ ▪ ▪ ▪
Malibu ▪ ▪ ▪ ▪ ▪ ▪
Manhattan Beach ▪ ▪ ▪ ▪ ▪ ▪
Maywood ▪ ▪ ▪ ▪ ▪
Monrovia ▪ ▪ ▪ ▪ ▪ ▪ ▪
Montebello ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Monterey Park ▪ ▪ ▪ ▪ ▪ ▪ ▪
Norwalk ▪ ▪ ▪ ▪ ▪
Palmdale ▪ ▪ ▪ ▪ ▪
Palos Verdes Estates ▪ ▪ ▪ ▪ ▪ ▪
Paramount ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Pasadena ▪ ▪ ▪ ▪ ▪ ▪
Pico Rivera ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Pomona ▪ ▪ ▪ ▪
Rancho Palos Verdes ▪ ▪ ▪ ▪ ▪
Redondo Beach ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Rolling Hills ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Rolling Hills Estates ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Rosemead ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
San Dimas ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
San Fernando ▪ ▪ ▪ ▪
San Gabriel ▪ ▪ ▪ ▪ ▪ ▪ ▪
San Marino ▪ ▪ ▪ ▪ ▪ ▪ ▪
Santa Clarita ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Santa Fe Springs ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Santa Monica ▪ ▪ ▪ ▪
Sierra Madre ▪ ▪ ▪ ▪
Signal Hill ▪ ▪ ▪ ▪ ▪
South El Monte ▪ ▪ ▪ ▪ ▪ ▪
South Gate ▪ ▪ ▪ ▪ ▪ ▪ ▪
South Pasadena ▪ ▪ ▪ ▪ ▪ ▪ ▪
Temple City ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Torrance ▪ ▪ ▪ ▪ ▪
Vernon ▪ ▪ ▪ ▪
Walnut ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
West Covina ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
West Hollywood ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Westlake Village ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪ ▪
Whittier ▪ ▪ ▪ ▪ ▪ ▪
TOTAL 72 12 24 8 2 5 37 21 37 85 4 16 42 6 4 21 21 49 76 88 9 Notes: ▪ A red dot indicates new services.

Public Works - Page 2

City of Hermosa Beach | Page 1 of 1
Meeting Date: April 8, 2025
Staff Report No. 25-AS-031
Honorable Mayor and Members of the Hermosa Beach City Council

CHECK REGISTERS
(Administrative Services Director Brandon Walker)
Recommended Action:

Staff recommends City Council ratify the following check registers for the period March 19, 2025 through March 26, 2025. The Administrative Services Director certifies the accuracy of the attached demands.

Attachments:

1. Check Register 3/19/2025

2. Check Register 3/20/2025

3. Check Register 3/26/2025
Respectfully Submitted by: Brandon Walker, Administrative Services Director Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

03/19/2025
Check Register

CITY OF HERMOSA BEACH
1 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108302 3/19/2025 06827 ALL CITY MANAGEMENT 99489 CROSSING GUARD SERVICE 2.19-3.1.25 146-2102-4201 15,235.38
06827 Total : 15,235.38
108303 3/19/2025 09366 AQUA FLO SI2490766 MAT REQ 898087 IRRIGATION SUPPLIES 001-6101-4309 97.01
09366 Total : 97.01
108304 3/19/2025 00321 AT&T 960 461-1985 555 7 PD COMPUTER CIRCUITS/MAR25 001-2101-4304 254.86
00321 Total : 254.86
108305 3/19/2025 00321 AT&T 000023186325 PD COMPUTER CIRCUITS/FEB25 001-2101-4304 130.22
00321 Total : 130.22
108306 3/19/2025 13361 AT&T MOBILITY 287297411168X0310202 PD&CSO CELL PHONES/LPR CAMERAS/FEB25 001-2101-4201 117.60
001-2101-4304 1,194.49
001-3302-4304 89.36
13361 Total : 1,401.45
108307 3/19/2025 13361 AT&T MOBILITY 287016141723X0314202 PW&CDD CELL PHONES&TABLETS/FEB25 001-4201-4304 410.80
001-4202-4304 449.30
13361 Total : 860.10
108308 3/19/2025 20942 BEST BEST & KRIEGER LLP 1019916 CITY ATTNY SVS/GENERAL/JAN25 001-1131-4201 16,634.50
1019917 CITY ATTNY SVS/PUB RECORDS REQ/JAN25
001-1131-4201 2,934.20
1019918 CITY ATTNY SVS/LAND USE/JAN25
001-1131-4201 1,441.60
1019919 CITY ATTNY SVS/TELECOMMUNICATIONS/JAN25
001-1131-4201 4,463.60
1019920 CITY ATTNY SVS/PW CONSTRUCTION/JAN25
001-1131-4201 1,800.20
20942 Total : 27,274.10

03/19/2025
Check Register

CITY OF HERMOSA BEACH
2 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108309 3/19/2025 00163 BRAUN LINEN SERVICE ACCT 70664 INMATE LAUNDRY SERVICE/FEB25 001-2101-4306 385.13
00163 Total : 385.13
108310 3/19/2025 18635 BURGOS, CARLOS TR1134 PER DIEM - PARKING EXPO 3/30-4/3/25 001-3302-4317 190.00
18635 Total : 190.00
108311 3/19/2025 23579 CALLYO 2009 CORP N20276 DRONE SOFTWARE & TRAINING 153-2106-4201 5,738.00
23579 Total : 5,738.00
108312 3/19/2025 23324 CANTEEN SOC246202 PD COFFEE SERVICE&DELIVERY/MAR25 001-2101-4305 30.31
001-2101-4306 30.32
23324 Total : 60.63
108313 3/19/2025 05970 COLLINS, DENNIS L. PO43276 INSTRUCTOR PYMT CLASSES THRU 3.16.25 001-4601-4221 4,081.00
05970 Total : 4,081.00
108314 3/19/2025 00364 DEPARTMENT OF JUSTICE 800014 MAT REQ 668349 FINGERPRINTING/FEB25 001-1203-4251 32.00
00364 Total : 32.00
108315 3/19/2025 18263 DIV OF THE STATE ARCHITECT PO43305 2024 4TH QUARTER CASP FEE 001-6851 248.80
18263 Total : 248.80
108316 3/19/2025 00181 EASY READER STMT 5731 MAT REQ 591363 LEGAL ADS/FEB25 001-1121-4323 147.00
00181 Total : 147.00
108317 3/19/2025 22926 FACTORY MOTOR PARTS 109-1026501 MR#511929 RETURNED BATTERY 715-2101-4311 -150.25
109-1028048 MR#511927 VEHICLE MAINTENANCE PARTS
715-3302-4311 64.93
109-1028080 MR#511926 VEHICLE MAINTENANCE PARTS
715-2101-4311 51.62
109-1028086 MR#511924 VEHICLE MAINTENANCE PARTS

03/19/2025
Check Register

CITY OF HERMOSA BEACH
3 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108317 3/19/2025 22926 FACTORY MOTOR PARTS (Continued)
715-4202-4311 29.87
109-1028087 MR#511925 VEHICLE MAINTENANCE PARTS
715-4201-4311 26.21
109-1028164 MR#511933 VEHICLE MAINTENANCE PARTS
715-2101-4311 185.38
1-10506120 MR#511931 VEHICLE MAINTENANCE PARTS
715-3104-4311 26.94
12-645768 MR#511928 VEHICLE MAINTENANCE PARTS
715-3302-4311 14.21
12-6457707 MR#511922 VEHICLE MAINTENANCE PARTS
715-2101-4311 215.94
12-6457723 MR#511923 VEHICLE MAINTENANCE PARTS
715-4201-4311 110.97
12-6460459 MR#511930 RETURNED PARTS
715-4202-4311 -247.61
22926 Total : 328.21
108318 3/19/2025 21402 FLYING LION, INC. 2207 MONTHLY DRONE LEASE&FAA REPORTING/MAR25 153-2106-4201 1,775.00
21402 Total : 1,775.00
108319 3/19/2025 19884 FRONTIER 209-190-0013-1206175 PD COMPUTER CIRCUITS/MAR25 001-2101-4304 900.78
19884 Total : 900.78
108320 3/19/2025 19884 FRONTIER 323-155-6779-0822065 FIBER OPTIC LINE/MAR25 715-1206-4201 229.63
19884 Total : 229.63
108321 3/19/2025 19884 FRONTIER 310-318-9210-0827185 PD JAIL BREATHALYZER/MAR25 001-2101-4304 120.17
19884 Total : 120.17
108322 3/19/2025 20452 GARDENA NISSAN 39216 MR#511921 VEHICLE MAINTENANCE PARTS 715-3302-4311 113.62
20452 Total : 113.62
108323 3/19/2025 10836 GRAINGER 9434900115 MAT REQ 898341/MAINTENANCE SUPPLIES 715-4204-4201 39.37

03/19/2025
Check Register

CITY OF HERMOSA BEACH
4 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108323 3/19/2025 10836 GRAINGER (Continued)
9441825198 MAT REQ 898340/MAINTENANCE SUPPLIES
001-4204-4201 429.45
9441825206 MAT REQ 898340/MAINTENANCE SUPPLIES
001-4204-4201 429.45
10836 Total : 898.27
108324 3/19/2025 21776 JACKSON, RAYMOND PO43327 TR1170 CLOSEOUT - ICA WINTER SEMINAR 001-1101-4317 144.20
21776 Total : 144.20
108325 3/19/2025 20359 KEYSTONE UNIFORM DEPOT 070986 PD RECRUIT UNIFORMS/MORENO 001-2101-4314 2,202.17
001-2101-4314 207.64
070987 PD RECRUIT UNIFORMS/SLACK
001-2101-4314 2,198.17
001-2101-4314 207.23
20359 Total : 4,815.21
108326 3/19/2025 22869 KOA CORPORATION 22754-11 CLARK BLDG CONST SUPPORT/DEC24 301-8689-4201 39,661.32
22754-12 CLARK BLDG CONST SUPPORT/JAN25
301-8689-4201 30,966.44
22869 Total : 70,627.76
108327 3/19/2025 20771 LA UNIFORMS & TAILORING INC 26010 CSO UNIFORMS/MENDEZ 001-3302-4314 592.40
001-3302-4314 60.72
26011 CSO UNIFORMS/BURRIS
001-3302-4314 597.40
001-3302-4314 61.23
20771 Total : 1,311.75
108328 3/19/2025 21550 LIBERTY MFG. INC. 852 SHOOTING RANGE MAINTENANCE 001-2101-4201 735.66
21550 Total : 735.66
108329 3/19/2025 18274 MAGNUM VENTURE PARTNERS PO43283 INSTRUCTOR PYMT CLASSES THRU 3.22.25 001-4601-4221 3,654.00

03/19/2025
Check Register

CITY OF HERMOSA BEACH
5 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108329 3/19/2025 18274 MAGNUM VENTURE PARTNERS (Continued) Total : 3,654.00 108330 3/19/2025 17055 MC CLINTOCK, JOHN PO43306 CITATION (38020146) REFUND - CORRECTION 001-3302 28.00
17055 Total : 28.00
108331 3/19/2025 13183 MILLER, CLAIRE B Parcel 4184 023 007 STREET LIGHT & SEWER TAX REBATE/2024 001-6871 142.37
105-3105 24.61
13183 Total : 166.98
108332 3/19/2025 19887 MIRETTI, NICK TR1135 PER DIEM - PARKING EXPO 3/30-4/3/25 001-3302-4317 190.00
19887 Total : 190.00
108333 3/19/2025 13114 ODP BUSINESS SOLUTIONS, LLC 409185102001 MAT REQ 898338/OFFICE SUPPLIES 001-4202-4305 61.66
411481883001 MAT REQ 898339/OFFICE SUPPLIES
001-4202-4305 53.67
414995754001 MAT REQ 898337/OFFICE SUPPLIES
001-4202-4305 57.21
415569895001 MAT REQ 782737/OFFICE SUPPLIES
001-2101-4305 89.25
13114 Total : 261.79
108334 3/19/2025 23018 PARKMOBILE, LLC INV42319 PAY-BY-APP PARKING FEES/FEB25 001-3302-4201 436.78
001-3304-4201 1,056.79
001-3305-4201 867.93
23018 Total : 2,361.50
108335 3/19/2025 14693 PARS 57534 ALT RETIREMENT PLAN ADMIN FEES/JAN25 001-1101-4185 11.23
001-1141-4185 1.60
001-1201-4185 3.21
001-2101-4185 16.05
001-3302-4185 27.28
001-4101-4185 3.21
001-4202-4185 30.49
001-4601-4185 67.42

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Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108335 3/19/2025 14693 PARS (Continued) Total : 160.49
108336 3/19/2025 03353 SBCU VISA 0009990-8377023 CC COVER FOR THE PAINT TRUCK PUMP 001-3104-4309 30.78
001-3104-4309 2.92
0015605 CC TENSION BANDS FOR CLARK FIELD FENCE
001-6101-4309 45.60
001-6101-4309 4.33
02321862 CC ROOF REPAIR MATERIAL
715-4204-4201 474.99
715-4204-4201 45.12
05B0034513168 PD WATER DELIVERY/FEB25
001-2101-4305 759.42
0E2A7ECB-0037 CC SOCIAL MEDIA MGMT PLATFORM/FEB25
001-1201-4201 79.00
11651903243 CC APWA CONFERENCE/J CORDOVA
001-4202-4317 193.92
11683656643 CC MINI CONF REGISTRATION: BRIAN & AUSTIN
001-4601-4317 60.00
1623724 CC EXCURSION - WARNER BROS STUDIOS TOUR
001-4601-4201 2,448.00
191610 CC LUNCH MEETING W/ R. POPLIN
001-2101-4305 41.80
19571002321895 CC PRINTING ELECTED OFFICIAL PHOTOS
001-1101-4305 13.41
001-1101-4305 1.27
200012955 CC 2025 CEQA GUIDELINES&ZONING LAWS BOOK
001-4101-4305 71.30
001-4101-4305 4.52
2010599971548903 CC 2025 ST. PATRICK'S DAY PARADE BANNER 001-4601-4308 104.99
001-4601-4308 9.97
2938416-1464251 CC OFFICE SUPPLIES FOR PW ADMIN OFFICE
001-4202-4305 11.13
001-4202-4305 411.22
33438932-1 CC RETURNED PRODUCT SHIPPING FEE
001-4601-4201 36.41
4127691-4450602 CC DESK LAMP WITH CLAMP
001-1201-4305 59.49

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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108336 3/19/2025 03353 SBCU VISA (Continued)
001-1201-4305 5.65
5489 CC SURF MONUMENT PLAQUE REPLACEMENT
001-4202-4201 660.00
001-4202-4201 54.76
5577889 CC EXCURSION TICKETS (40) LACMA 6/17/25
001-4601-4201 840.00
558887 CC COUNCIL MEETING DINNER 2.25.25
001-1101-4305 430.26
5865272-0881019 CC BUILDING & SAFETY PLAN APPROVAL STAMP 001-4201-4305 76.70
001-4201-4305 7.29
8555191-1069053 CC OFFICE SUPPLIES ORDER
001-4601-4328 12.72
001-4601-4305 33.95
001-4601-4328 1.21
001-4601-4305 3.23
965463 CC DONUTS FOR BACKHOE TRAINING
001-4202-4305 42.98
ACCT#903261336 CC DAILY BREEZE ANNUAL SUBSCRIPTION
001-1201-4315 119.83
BBY01-807032786914CC TV FOR MEETINGS AT COMMUNITY CENTER 715-4204-4201 119.99
715-4204-4201 15.30
BR01763770 CC EOC SATELLITE PHONE/MAR25
001-1201-4304 66.95
Feb25 CC FASTRAK ACCOUNT REPLENISHMENT/FEB25
001-2101-4201 240.00
FEB25 CC SUPERCHARGER FEES/FEB25
715-2101-4311 96.21
ML0HF88VH6 CC SENIOR CENTER MOVIES/MUSIC/FEB25
001-4601-4328 10.99
ML0HH4G3BW CC SENIOR CENTER CLOUD STORAGE/FEB25
001-4601-4328 0.99
MXG3S6G3NM CC ADDITIONAL STORAGE/LEBARON/FEB25
001-2101-4305 2.99
ORDER#33278173 CC RETURNED THEATER EQUIPMENT
001-2177 -2,026.57
PO43139 CC SPECIAL OLYMPICS SOCAL EVENT TICKETS

03/19/2025
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CITY OF HERMOSA BEACH
8 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108336 3/19/2025 03353 SBCU VISA (Continued)
001-2101-4317 350.00
PO43155 CC BEST OF HERMOSA EVENT REGISTRATION
001-1101-4319 800.00
PO43159 CC REFUND - EXPEDITED SHIPPING
001-1201-4305 -32.99
PO43167 CC VALLEY PARK DAY CAMP FIELD TRIP DEPOSIT
001-4601-4308 150.00
PO43179 CC CARPET CLEANER RENTAL
715-4204-4201 67.98
715-4204-4201 6.46
PO43181 CC PLANNING COMM MEETING DINNER 2.18.25
001-4101-4305 54.96
001-4101-4305 5.23
PO43191 CC COMMISSIONER PEDERSEN THANK YOU GIFT
001-4101-4305 83.99
001-4101-4305 7.98
R#448384 CC ICE FOR EMPLOYEE LUNCH
001-2101-4305 13.12
SC-958713-NXQ10 CC GENERAL MEMBERSHIP MEETING REGISTRATION 001-1101-4315 50.00
TR1153 CC CAL CITIES CM CONF/LOWENTHAL
001-1201-4317 620.84
TR1153 CC CAL CITIES CM CONF LUNCH 2.5.25
001-1201-4317 58.99
TR1153 CC CAL CITIES CM CONF BFAST 2.6.25
001-1201-4317 8.00
TR1154 CC CAL CITIES CM CONF/CRESPI
001-1201-4317 620.84
TR1161 CC LCW EMPLOYMENT LAW CONF/LEBARON
001-2101-4317 994.22
TR1170 CC ICA WINTER SEMINAR/JACKSON
001-1101-4317 969.42
TR1185 CC ICA WINTER SEMINAR/KEEGAN
001-1101-4317 637.58
TR1186 CC ICA WINTER SEMINAR/FRANCOIS
001-1101-4317 660.58
TR1187 CC ICA WINTER SEMINAR/SAEMANN
001-1101-4317 366.79

03/19/2025
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CITY OF HERMOSA BEACH
9 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108336 3/19/2025 03353 SBCU VISA (Continued)
TR1187 CC ICA WINTER SEMINAR/SAEMANN
001-1101-4317 845.00
TR1188 CC POST WELLNESS PROGRAM MEETING/LEBARON
001-2101-4317 733.80
WP0066084 CC MANHOLE COVER CUSHION
160-3102-4309 282.80
160-3102-4309 26.87
03353 Total : 14,107.48
108337 3/19/2025 13776 SMITH, STARLA PO43332 TR1189 CLOSEOUT-CAPE CONF MILEAGE REIMB 001-2101-4313 108.57
13776 Total : 108.57
108338 3/19/2025 10532 SOUTH BAY FORD 531152 MR#511932 VEHICLE MAINTENANCE PARTS 715-4202-4311 526.53
10532 Total : 526.53
108339 3/19/2025 15398 SRK PROMOTIONAL ADVERTISING 5272 WHAT THE FUZZ JACKET FOR INTERN 001-3302-4201 70.00
001-3302-4201 41.65
5273 PROMO ITEMS FOR WHAT THE FUZZ EVENTS
001-3302-4201 1,444.60
001-3302-4201 231.99
15398 Total : 1,788.24
108340 3/19/2025 16921 SUPER SOCCER STARS PO43289 INSTRUCTOR PAYMENT CLASS 11689 001-4601-4221 1,450.91
16921 Total : 1,450.91
108341 3/19/2025 19956 TANABE, SEAN TR1133 PER DIEM - PARKING EXPO 3/30-4/3/25 001-3302-4317 190.00
19956 Total : 190.00
108342 3/19/2025 14007 ULINE 189917281 PD SUPPLIES
001-3302-4314 376.00
001-2101-4201 10.50
001-3302-4314 19.47
001-3302-4314 35.86
001-2101-4201 1.00

03/19/2025
Check Register

CITY OF HERMOSA BEACH
10 3:46:49PM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108342 3/19/2025 14007 ULINE (Continued) Total : 442.83 108343 3/19/2025 22955 VRC COMPANIES, LLC 4782449 RECORDS STORAGE/MAR25 001-1121-4201 262.72
22955 Total : 262.72
108344 3/19/2025 21283 YOUNG, JONATHAN TR1136 PER DIEM - PARKING EXPO 3/30-4/3/25 001-3302-4317 190.00
21283 Total : 190.00
43 Vouchers for bank code : boa Bank total : 164,025.98 43 Vouchers in this report Total vouchers : 164,025.98

03/20/2025
Check Register

CITY OF HERMOSA BEACH
1 8:09:47AM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108345 3/20/2025 18821 SPCALA 202501R ANIMAL SERVICES/JAN25 001-3302-4201 5,500.00
202502 ANIMAL SERVICES/FEB25
001-3302-4201 4,750.00
18821 Total : 10,250.00
1 Vouchers for bank code : boa Bank total : 10,250.00
1 Vouchers in this report Total vouchers : 10,250.00

03/26/2025
Check Register

CITY OF HERMOSA BEACH
1 10:15:47AM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108346 3/26/2025 06827 ALL CITY MANAGEMENT 99839 CROSSING GUARD SVS 3.2 - 3.15.25 146-2102-4201 16,871.83
06827 Total : 16,871.83
108347 3/26/2025 09366 AQUA FLO SI2496072 MAT REQ 611752 IRRIGATION SUPPLIES 001-6101-4309 365.62
09366 Total : 365.62
108348 3/26/2025 16660 ATHENS SERVICES 18531878 ANNUAL COMPOST PROCUREMENT 150-1225-4201 8,710.20
16660 Total : 8,710.20
108349 3/26/2025 17196 BEAN, SHIHO Parcel 4188 012 082 STREET LIGHT TAX REBATE/2024 105-3105 24.61
17196 Total : 24.61
108350 3/26/2025 19248 BLACK, CATHERINE M Parcel 4186 022 010 STREET LIGHT & SEWER TAX REBATE/2024 001-6871 142.37
105-3105 24.61
19248 Total : 166.98
108351 3/26/2025 23578 CENTERS OF CA, A MEDICAL CORP, OCCUPATIONAL HEALTH 86232692 PRE-EMPLOYMENT PHYSICAL 3.13.25 001-1203-4320 218.00
23578 Total : 218.00
108352 3/26/2025 20407 CONNOLLY, ELIZABETH Parcel 4188 030 009 STREET LIGHT & SEWER TAX REBATE/2024 001-6871 142.37
105-3105 24.61
20407 Total : 166.98
108353 3/26/2025 11449 DEWEY PEST CONTROL Acct 759408 CITYWIDE PEST CONTROL/FEB25 001-4204-4201 1,060.00
11449 Total : 1,060.00
108354 3/26/2025 11449 DEWEY PEST CONTROL Acct 1233239 SEWER RAT ABATEMENT/FEB25 160-3102-4201 278.00
11449 Total : 278.00
108355 3/26/2025 19358 DOVE, GUY PO43351 REIMB-PARKING @LIFESAVERS CONF

03/26/2025
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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108355 3/26/2025 19358 DOVE, GUY (Continued)
001-2101-4317 45.00
TR1192 PER DIEM - SUP LEADERSHIP INSTITUTE
001-2101-4312 125.00
19358 Total : 170.00
108356 3/26/2025 22221 ENCODEPLUS, LLC 3038 MR#591364 ORDINANCE CODIFICATION 001-1121-4201 286.00
22221 Total : 286.00
108357 3/26/2025 08625 EXPRESS ENVIRONMENTAL CORP 2503035 HAZARDOUS PAINT WASTE REMOVAL 001-3104-4201 840.00
08625 Total : 840.00
108358 3/26/2025 19884 FRONTIER 209-188-4669-0714985 LANDLINE/COMPUTER LINKS/MAR25 001-1204-4304 90.92
715-1206-4304 1,743.49
001-3302-4304 129.76
001-2101-4304 784.70
001-4204-4321 333.88
001-4202-4304 92.33
001-3304-4304 81.81
19884 Total : 3,256.89
108359 3/26/2025 19884 FRONTIER 310-379-0652-1216195 EOC LANDLINES/MAR25 001-1201-4304 112.16
19884 Total : 112.16
108360 3/26/2025 19884 FRONTIER 310-372-6186-0831895 2ND FL CITY HALL FAX LINE/MAR25 001-1121-4304 18.99
001-1141-4304 19.00
001-1201-4304 18.99
001-1202-4304 19.00
001-1203-4304 18.98
19884 Total : 94.96
108361 3/26/2025 10306 GAGLIA, MICK TR1176C PER DIEM-POST MGMT COURSE APR7-10 001-2101-4317 200.00
10306 Total : 200.00

03/26/2025
Check Register

CITY OF HERMOSA BEACH
3 10:15:47AM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108362 3/26/2025 23415 GRBCON, INC. 24SW17-06 ANNUAL SEWER IMPROVEMENTS/FEB25 160-8421-4201 187,333.48
23415 Total : 187,333.48
108363 3/26/2025 21597 GROH, MARK LEE HB-057 CITATION HEARING SVS/MAR25 001-1204-4201 280.00
21597 Total : 280.00
108364 3/26/2025 19535 GUERRA, JOHN L Parcel 4186 025 035 STREET LIGHT & SEWER TAX REBATE/2024 001-6871 142.37
105-3105 24.61
19535 Total : 166.98
108365 3/26/2025 22725 HERC RENTALS 35010062-005 PORTABLE AC UNIT RENTAL FOR PD 715-4204-4201 960.91
22725 Total : 960.91
108366 3/26/2025 15141 HONDA MD INC, STEPHAN T 00180094 DETAINEE BLOOD DRAWS/JAN25 001-2101-4201 127.20
00180873 DETAINEE BLOOD DRAWS/FEB25
001-2101-4201 318.00
15141 Total : 445.20
108367 3/26/2025 00151 LA CO SHERIFFS DEPARTMENT 252269BL MAT REQ 475396 INMATE MEALS/FEB25 001-2101-4306 181.34
00151 Total : 181.34
108368 3/26/2025 22191 LEBARON, PAUL TR1173 PER DIEM - TRI-COUNTY SPRING CONF 001-2101-4317 40.00
22191 Total : 40.00
108369 3/26/2025 21432 LINKEDIN CORPORATION 10112674559 RECRUITER CORP ANNUAL SUBSCRIPTION 001-1203-4201 13,835.00
21432 Total : 13,835.00
108370 3/26/2025 23206 LOS ANGELES CENTER FOR ALCOHOL PO40930 MOBILE MENTAL HEALTH TEAM/FEB25 150-1201-4201 41,796.69
23206 Total : 41,796.69
108371 3/26/2025 20898 MCCORMICK AMBULANCE 319835 AMBULANCE TRANSPORT SERVICES/FEB25

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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108371 3/26/2025 20898 MCCORMICK AMBULANCE (Continued)
001-1201-4201 31,915.00
20898 Total : 31,915.00
108372 3/26/2025 16613 MCDERMOTT, GARRETT PO43354 REIMB-PARKING @LIFESAVERS CONF 001-2101-4317 45.00
16613 Total : 45.00
108373 3/26/2025 18071 MERCHANTS LANDSCAPE SERVICES 64450 EXTRA LANDSCAPE WORK/FEB25 001-6101-4201 2,300.00
18071 Total : 2,300.00
108374 3/26/2025 20916 MICHAEL BAKER INTERNATIONAL 1237233 PAVEMENT TESTING & ANALYSIS/DEC25 115-8191-4201 844.27
20916 Total : 844.27
108375 3/26/2025 22691 MONTROY SUPPLY COMPANY 100042097-00 INK FOR THE SIGN SHOP PRINTER 301-8109-4201 888.59
301-8109-4201 84.42
22691 Total : 973.01
108376 3/26/2025 22053 NAKAMOTO, JOSHUA TR1178 PER DIEM - SCHOOL SHOOTING TRAINING 001-2101-4317 75.00
22053 Total : 75.00
108377 3/26/2025 23466 NEW LINE SKATEPARKS FL, INC. 960 SKATE PARK ASSESSMENT/FEB25 001-4202-4201 500.00
23466 Total : 500.00
108378 3/26/2025 21033 NV5, INC 434161 GREENWICH VILLAGE UUAD/JAN25 001-2133 7,617.50
21033 Total : 7,617.50
108379 3/26/2025 13114 ODP BUSINESS SOLUTIONS, LLC 415722504001 MAT REQ 782739/OFFICE SUPPLIES 001-2101-4305 56.76
415758959001 MAT REQ 782738/OFFICE SUPPLIES
001-2101-4305 76.64
13114 Total : 133.40
108380 3/26/2025 19485 OPENGOV INC INV17617 BUDGET & STORY BUILDER JAN-JUN25

03/26/2025
Check Register

CITY OF HERMOSA BEACH
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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108380 3/26/2025 19485 OPENGOV INC (Continued)
001-1202-4201 8,997.50
19485 Total : 8,997.50
108381 3/26/2025 23613 OROPEZA, ALEXIS PO43355 PLANNING COMM MEETING DINNER 3/18/25 001-4101-4305 103.29
23613 Total : 103.29
108382 3/26/2025 08837 REDONDO BEACH, CITY OF 583523 DIESEL VEHICLE FUEL/NOV24 001-2202-4251 952.15
715-3104-4310 793.46
583524 DIESEL VEHICLE FUEL/DEC24
001-2202-4251 682.50
715-3104-4310 651.42
583525 DIESEL VEHICLE FUEL/JAN25
001-2202-4251 784.08
715-3104-4310 200.38
715-3102-4310 385.70
583526 DIESEL VEHICLE FUEL/FEB25
001-2202-4251 154.44
08837 Total : 4,604.13
108383 3/26/2025 08837 REDONDO BEACH, CITY OF 583522 DIESEL VEHICLE FUEL/OCT24 001-2202-4251 915.29
715-3104-4310 427.58
715-3102-4310 201.76
08837 Total : 1,544.63
108384 3/26/2025 03353 SBCU VISA 0063029-3883420 CC OFFICE SUPPLIES 001-2101-4305 23.16
001-2101-4305 2.20
0132010-8697026 CC OFFICE SUPPLIES
001-1121-4305 159.90
001-1121-4305 22.85
02012025 CC MR#782728 SNACKS&DRINKS FOR DUI OPS
001-2101-4305 180.58
02042025 CC MR#668344 SUPPLIES FOR TRAINING
001-1203-4317 170.08
022125 CC MR#668345 SUPPLIES FOR TRAINING

03/26/2025
Check Register

CITY OF HERMOSA BEACH
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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108384 3/26/2025 03353 SBCU VISA (Continued)
001-1203-4317 158.87
022725 CC CDD RECRUITMENT LUNCH
001-1203-4201 70.00
0256385 CC MEMBERSHIP DUES/CAHALAN
001-2101-4315 85.00
0301120-9650627 CC COMM SVS SUPPLIES
001-3302-4305 89.99
001-2101-4305 13.99
001-3302-4305 8.55
001-2101-4305 1.33
11549 CC ANNUAL GOVT MEMBERSHIP
001-1203-4305 425.00
130644 CC NEW HIRE LUNCH/BURRIS
001-2101-4305 46.79
130943 CC TRAINING FOR DETECTIVES
001-2101-4317 1,197.00
1312177946 CC TR1178 TRAINING REGISTRATION/NAKAMOTO
001-2101-4317 425.00
2296180-7937815 CC OFFICE SUPPLIES
001-2101-4305 15.99
001-2101-4305 12.46
2428207-7195448 CC CLEANING SUPPLIES
001-2101-4201 34.55
001-2101-4201 3.28
2732726-45119451 CC OFFICE SUPPLIES
001-1121-4305 72.72
001-1121-4305 4.25
30017536 CC ANNUAL MEMBERSHIP RENEWAL/BAILEY
001-1202-4315 60.00
3471 CC TRAINING REGISTRATION/T NGUYEN
001-1203-4317 475.00
3748 CC RECRUIT LUNCH/GRAY&BURRIS
001-2101-4305 90.27
414327460-001 PRESENTATION CLICKER
001-1121-4305 39.99
001-1121-4305 3.80
4158980-4105862 CC HEADPHONES FOR COMM SVS EMPLOYEES
001-3302-4305 189.96

03/26/2025
Check Register

CITY OF HERMOSA BEACH
7 10:15:47AM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108384 3/26/2025 03353 SBCU VISA (Continued)
001-3302-4305 18.04
4521799-0302640 CC VEHICLE ACCESSORIES
001-2101-4305 102.57
001-2101-4305 9.75
4929 CC RECRUIT LUNCH
001-2101-4305 95.41
5636714-8137066 CC DEPARTMENT SUPPLIES
001-2101-4201 8.99
001-2101-4201 0.85
5684 CC LEAVE OF ABSENCE WEBINAR/M. SHIH
001-1203-4317 999.00
714485 CC NEW HIRE LUNCH/SANCHEZ
001-2101-4305 76.28
8049040-6214606 CC CAR ACCESSORIES
715-2101-4201 60.99
715-2101-4201 13.45
8380453-3558662 CC STANDING DESK FRAMES FOR REV SVS
001-1204-4305 265.98
001-1204-4305 25.26
8625520 CC CONF REGISTRATION-DOVE&MCDERMOTT
150-2114-4201 1,450.00
8636134-6655437 CC RANGE SUPPLIES
001-2101-4201 48.99
001-2101-4201 4.65
9804 CC NEW HIRE LUNCHEON
001-2101-4305 126.07
9963559-4636246 CC PHONE ACCESSORIES
001-2101-4305 55.30
001-2101-4305 5.25
MIL00007642 CC EQUIPMENT-GUN HOLSTER
001-2101-4314 339.90
001-2101-4314 32.29
PO43112 CC SUPPLIES FOR TRAINING SESSIONS
001-1203-4317 199.32
001-1203-4317 18.93
PO43158 CC TRAINING REGISTRATION/PINEDA
001-2101-4317 185.00
PO43199 CC STC TRAINING/RODRIGUEZ

03/26/2025
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CITY OF HERMOSA BEACH
8 10:15:47AM
Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108384 3/26/2025 03353 SBCU VISA (Continued)
001-2101-4313 100.00
PO43232 CC LAMINATION SHEETS
001-1121-4305 9.98
001-1121-4305 0.95
PO43233 CC MEMBERSHIP RENEWAL/MARAVILLA
001-1121-4315 195.00
PO43280 CC EMPLOYEE LUNCH-OSHA TRAINING FOR PW
001-1203-4305 141.84
TR1143 CC REFUND-OVERCHARGE/R GUZMAN
001-1121-4317 -835.32
TR1156C POST MGMT COURSE M3/CAHALAN
001-2101-4312 231.40
TR1163 CC LUNCH @EMPLOYEMENT LAW CONF/POELSTRA
001-2101-4317 68.19
TR1171 CC NUTS&BOLTS TRAINING/RODRIGUEZ
001-1121-4317 418.32
TR1174 CC CSI COURSE WK2/ORTIZ
001-2101-4317 918.30
TR1176A POST MGMT COURSE M1/GAGLIA
001-2101-4317 1,007.00
TR1183 CC USE OF FORCE TRAINING/ZUBER
001-2101-4312 520.98
TR1189 CC CONF REGISTRATION/SMITH
001-2101-4313 500.00
03353 Total : 11,501.47
108385 3/26/2025 00170 SOCAL GAS 011 004 5767 8 CITY-OWNED BLDGS/NATURAL GAS/FEB25 001-4204-4303 28.48
097 904 5900 3 CITY-OWNED BLDGS/NATURAL GAS/FEB25
001-4204-4303 144.43
102 104 5900 3 CITY-OWNED BLDGS/NATURAL GAS/FEB25
001-4204-4303 295.26
141 204 4600 1 CITY-OWNED BLDGS/NATURAL GAS/FEB25
001-4204-4303 24.65
00170 Total : 492.82
108386 3/26/2025 21291 SOHLER, GLORIA Parcel 4184 015 020 STREET LIGHT & SEWER TAX REFUND/2024 001-6871 142.37

03/26/2025
Check Register

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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108386 3/26/2025 21291 SOHLER, GLORIA (Continued)
105-3105 24.61
21291 Total : 166.98
108387 3/26/2025 00113 SOUTH BAY FIRE, INC. 194004 MR#898262 FIRE EXTINGUISHER PARTS 001-4204-4201 23.00
194005 MR#898254 NEW FIRE EXTINGUISHERS
001-4204-4201 244.58
00113 Total : 267.58
108388 3/26/2025 19623 SOUTHERN CALIFORNIA NEWS GROUP STMT 611612 LEGAL ADS/FEB25 001-1121-4323 1,454.75
19623 Total : 1,454.75
108389 3/26/2025 00146 SPARKLETTS 4472788 032025 DRINKING WATER DELIVERY/MAR25 001-4601-4305 232.32
001-4601-4328 84.93
00146 Total : 317.25
108390 3/26/2025 10412 STERICYCLE 1000819427 MEDICAL WASTE DISPOSAL/APR25 001-2101-4201 70.00
10412 Total : 70.00
108391 3/26/2025 00123 TRIANGLE HARDWARE Acct 1009 MAINTENANCE SUPPLIES/MAR25 001-3104-4309 2,333.56
001-3104-4201 4,588.26
001-6101-4201 2,375.59
105-2601-4309 3,655.75
715-4204-4201 2,755.93
715-4206-4309 525.84
001-2021 316.58
001-2022 -316.58
00123 Total : 16,234.93
108392 3/26/2025 20670 TURBODATA SYSTEMS, INC. 45286 CITATION PAPER ROLLS 001-3302-4201 850.00
001-3302-4201 80.75
20670 Total : 930.75
108393 3/26/2025 18753 UNITED SITE SERVICES 114-14031345 PORTABLE TOILET RENTAL-14TH ST RESTROOMS

03/26/2025
Check Register

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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108393 3/26/2025 18753 UNITED SITE SERVICES (Continued) 160-3102-4201 694.43
114-14034722 RESTROOM RENTAL FOR PIER INSPECTIONS
191-8623-4201 496.37
18753 Total : 1,190.80
108394 3/26/2025 14148 UPS 000023R146125 MR#668350 SHIPPING SERVICES 001-1203-4305 55.11
14148 Total : 55.11
108395 3/26/2025 22700 VALLEY MAINTENANCE CORP. 31302 CITYWIDE JANITORIAL SERVICE/JAN25 001-4204-4201 13,818.00
31345 CITYWIDE JANITORIAL SERVICE/FEB25
001-4204-4201 13,818.00
22700 Total : 27,636.00
108396 3/26/2025 03209 VERIZON WIRELESS 6108651106 PD TRUNK MODEMS/MAR25 153-2106-4201 1,000.25
03209 Total : 1,000.25
108397 3/26/2025 05939 WEBER, TRAUDL Parcel 4181 020 036 STREET LIGHT & SEWER TAX REBATE/2024 001-6871 142.37
105-3105 24.61
05939 Total : 166.98
108398 3/26/2025 22597 WHITE, GLORIA P Parcel 4182 024 009 STREET LIGHT TAX REBATE/2024 105-3105 24.61
22597 Total : 24.61
108399 3/26/2025 14051 WHITLOW, ROBERT L Parcel 4184 015 022 STREET LIGHT TAX REBATE/2024 105-3105 24.61
14051 Total : 24.61
108400 3/26/2025 10703 WILLDAN ENGINEERING 234177 STAFF AUGMENTATION FOR CDD/JAN25 001-4201-4201 24,496.65
234369 STAFF AUGMENTATION FOR CDD/FEB25
001-4201-4201 23,392.50
10703 Total : 47,889.15
108401 3/26/2025 22715 YUNEX LLC 5610004675 TRAFFIC SIGNAL MAINTENANCE/FEB25

03/26/2025
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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
108401 3/26/2025 22715 YUNEX LLC (Continued)
001-3104-4201 757.73
22715 Total : 757.73
108402 3/26/2025 21393 ZUBER, BRENT TR1183 PARKING REIMBURSEMENT 001-2101-4317 30.00
21393 Total : 30.00
2430932 3/20/2025 14691 ADMINSURE AS AGENT FOR THE Wire date 3.20.25A LIABILITY CLAIMS REIMB/JAN25 705-1209-4324 5,500.51
Wire date 3.20.25B LIABILITY CLAIMS REIMB/FEB25
705-1209-4324 23,183.34
14691 Total : 28,683.85
4677424 3/19/2025 10668 EXXON MOBIL BUSINESS FLEET 103485535 VEHICLE FUEL 2.10.25-3.9.25 001-1250 105.03
715-4201-4310 51.71
715-3302-4310 1,526.45
715-4202-4310 211.25
715-2101-4310 4,917.10
715-4204-4310 673.30
715-4206-4310 215.39
715-6101-4310 407.28
715-3104-4310 410.81
10668 Total : 8,518.32
6330932 3/19/2025 14691 ADMINSURE AS AGENT FOR THE Wire date 3.19.25A WORKERS COMP CLAIMS 1.6-1.9.25 705-1217-4324 20,316.97
Wire date 3.19.25B WORKERS COMP CLAIMS 1.13-1.16.25
705-1217-4324 3,678.77
Wire date 3.19.25C WORKERS COMP CLAIMS 1.21-1.24.25
705-1217-4324 4,714.74
Wire date 3.19.25D WORKERS COMP CLAIMS 1.27-1.30.25
705-1217-4324 6,595.91
Wire date 3.19.25E WORKERS COMP CLAIMS 2.3-2.7.25
705-1217-4324 9,282.35
Wire date 3.19.25F WORKERS COMP CLAIMS 2.10-2.13.25
705-1217-4324 4,981.82
Wire date 3.19.25G WORKERS COMP CLAIMS 2.18-2.21.25

03/26/2025
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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
6330932 3/19/2025 14691 ADMINSURE AS AGENT FOR THE (Continued) 705-1217-4324 4,296.47
Wire date 3.19.25H WORKERS COMP CLAIMS 2.24-2.28.25
705-1217-4324 9,312.85
Wire date 3.19.25I WORKERS COMP CLAIMS 3.3-3.7.25
705-1217-4324 7,462.00
Wire date 3.19.25J WORKERS COMP CLAIMS 3.10-3.14.25
705-1217-4324 9,514.40
14691 Total : 80,156.28
7884934 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700057262780 ELECTRICITY/FEB25 105-2601-4303 122.51
00159 Total : 122.51
7885324 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700156101336 ELECTRICITY/FEB25 001-4204-4303 13,650.86
001-6101-4303 169.19
00159 Total : 13,820.05
7885589 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700222378305 ELECTRICITY/FEB25 001-6101-4303 2,752.56
00159 Total : 2,752.56
7885628 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700234897163 ELECTRICITY/FEB25 001-3304-4303 3,331.12
00159 Total : 3,331.12
7885929 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700304673105 ELECTRICITY/FEB25 160-3102-4201 126.59
00159 Total : 126.59
7885969 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700313445137 ELECTRICITY/FEB25 105-2601-4303 7,703.29
00159 Total : 7,703.29
7886084 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700338055956 ELECTRICITY/FEB25 001-4204-4303 2,831.44
00159 Total : 2,831.44
7886228 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700371314327 ELECTRICITY/FEB25

03/26/2025
Check Register

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Page:

Bank code : boa
Voucher Date Vendor Invoice Description/Account Amount
7886228 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO (Continued) 105-2601-4303 268.22
00159 Total : 268.22
7886273 3/14/2025 00159 SOUTHERN CALIFORNIA EDISON CO 700382668983 ELECTRICITY/FEB25 001-3104-4303 1,422.39
001-4204-4303 1,568.47
105-2601-4303 2,912.86
00159 Total : 5,903.72
400456433 3/20/2025 08904 CA JOINT POWERS INSURANCE AUTH Wire date 3.20.25 LIABILITY CLAIMS REIMB/FEB25 705-1209-4324 1,785.00
08904 Total : 1,785.00
800395904 3/18/2025 23101 ATHENS ADMINISTRATORS Wire date 3.18.25 WORKERS COMP CLAIMS/FEB25 705-1217-4324 54,871.34
23101 Total : 54,871.34
71 Vouchers for bank code : boa Bank total : 658,600.62 71 Vouchers in this report Total vouchers : 658,600.62

City of Hermosa Beach | Page 1 of 3
Meeting Date: April 8, 2025
Staff Report No. 25-AS-033
Honorable Mayor and Members of the Hermosa Beach City Council FISCAL YEAR 2023–2024 ANNUAL COMPREHENSIVE FINANCIAL REPORT (INCLUDING REPORT FROM INDEPENDENT AUDITOR)
(Administrative Services Director Brandon Walker)
Recommended Action:

Staff recommends City Council receive and file the FY 2023–24 Annual Comprehensive Financial Report (ACFR) (Attachment 1), which includes the report from Gruber and Lopez, Inc., the City’s independent auditors.

Executive Summary:

The purpose of this report is to present the City’s Annual Comprehensive Financial Report (ACFR) for fiscal year ending June 30, 2024.

The City received an unmodified (“clean”) opinion on the financial statements in the City’s ACFR. The unmodified opinion is the highest-level opinion the City can receive. The opinion asserts that the City complies with all Generally Accepted Accounting Principles (GAAP) and Government Accounting Standards Board (GASB) requirements.

The City’s ACFR also includes the Certificate of Achievement for Excellence in Financial Reporting award from the Government Finance Officers Association (GFOA) for the prior fiscal year ended June 30, 2023. The City has received the award from GFOA since 1990 in recognition of publishing a high quality ACFR. The FY 2023–24 ACFR was submitted to GFOA with the expectation of receiving this award again.

Background:

Annually, the Administrative Services Department prepares and publishes the City’s ACFR following the completion of a financial audit performed by an independent, Certified Public Accountant (CPA) firm. The independent CPA firm is Gruber and Lopez, Inc.

The ACFR, previously known as the Comprehensive Annual Financial Report, is designed to assist the reader in properly understanding the City financial statements covering City activities from July 1, 2023 to June 30, 2024. This is accomplished by supplementing the financial statements with background on the City structure, the environment the City operates in, and the types of services the City of Hermosa Beach provides. It also provides an analysis concerning the City’s financial and economic situation along with relevant multi-year economic and demographic information.

City of Hermosa Beach | Page 2 of 3
The basic structure and contents of an ACFR are set by authoritative accounting and financial standards. The Governmental Accounting Standards Board (GASB) sets the ACFR standards. Pursuant to GASB, the City’s ACFR is divided into three sections:

Introductory, Financial, and Statistical.

The Introductory section contains a Letter of Transmittal. This letter includes a brief overview of the City, economic outlook, financial planning, and relevant policies. The Introductory section also includes the Certificate of Achievement for Excellence in Financial Reporting from the Government Finance Officers Association (GFOA) for the prior fiscal year ACFR.

The Financial section contains the independent CPA auditor’s report, Management’s Discussion & Analysis (MD&A), and the basic financial statements (including notes). The firm of Gruber and Lopez, Inc. issued an unmodified (“clean”) opinion on the financial statements for the fiscal year ended June 30, 2024. This means that its examination, testing, and audit procedures allowed them to conclude that the financial statements present fairly, in all material respects, the financial position of the City. This is the best opinion that the City can receive from its auditors.

The MD&A provides an objective and easily readable analysis of the City’s financial activities and results of operations. The MD&A also provides an analysis of general fund budgetary variations, condensed comparative information between the 2023 and 2024 fiscal years and a discussion of currently known facts, decisions or conditions of future significance.

The Statistical Section is the final section of the ACFR. This section presents operational, economic and historical City data that provides a context for assessing the City’s economic condition. The data includes information on financial trends, revenue capacity, debt capacity, City demographic and departmental operating information.

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:

Infrastructure Element

City of Hermosa Beach | Page 3 of 3
Goal 1. Infrastructure systems are functional, safe, and well maintained.

Policies:
 1.2 Priority investments. Use City Council established priorities and the Capital Improvement Program (CIP) to identify and allocate funding for projects identified in the infrastructure plan.
 1.9: Preventative street maintenance projects. Include street slurry projects and other preventive projects in the CIP each year, with sufficient funding.

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

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

Fiscal Impact:

There is no fiscal impact associated with receiving and filing the ACFR.

At its June 11, 2024 meeting, Council approved and adopted the Fiscal Year 2024–25 budget. Staff previously recommended Council approve transfers of FY 2023–24 unspent funds in the General Fund at year end to the Insurance Fund, if needed, to restore the fund balance to $3.0 million and the transfer of any remaining funds to the Capital Improvement Fund for future Capital Improvement Project (CIP) needs.

At the end of 2023–24, the City’s FY 2023–24 unspent funds in the General Fund was $3,128,672. Staff performed a transfer from the 2023–24 General Fund unspent funds of $425,521 to the Insurance Fund and $2,703,151 to the Capital Improvement Fund at 2023–24 year end.

Attachment:

FY 2023–24 ACFR
Respectfully Submitted by: Henry Chao, Finance Manager
Concur: Charlotte Newkirk, Senior Finance Analyst
Noted for Fiscal Impact: Brandon Walker, Administrative Services Director Reviewed by: Angela Crespi, Deputy City Manager
Approved: Suja Lowenthal, City Manager

Hermosa Beach, CA
Annual Comprehensive
Financial Report For the Fiscal Year Ended June 30, 2024

City of Hermosa Beach
Hermosa Beach, California
Annual Comprehensive Financial Report
For the Fiscal Year Ended June 30, 2024
Prepared by the
Finance Department of Hermosa Beach

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City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents
Page

INTRODUCTORY SECTION (UNAUDITED)
Letter of Transmittal ............................................................................................................................................................... v Organizational Chart ............................................................................................................................................................ xiii Principal Officials of the City of Hermosa Beach ........................................................................................................... xiv Certificate of Achievement for Excellence in Financial Reporting ............................................................................... xv

FINANCIAL SECTION
Independent Auditors’ Report on Financial Statements ..................................................................................................... 1 Management’s Discussion and Analysis (Required Supplementary Information) (Unaudited) ............................... 4 Basic Financial Statements:

Government – Wide Financial Statements:

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

Governmental Fund Financial Statements:

Balance Sheet ........................................................................................................................................................... 25 Reconciliation of the Governmental Funds Balance Sheet
to the Government–Wide Statement of Net Position .................................................................................. 27 Statement of Revenues, Expenditures,
and Changes in Fund Balances ....................................................................................................................... 28 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the Government–Wide Statement of Activities ..................................................................................................................................... 30 Proprietary Fund Financial Statements:

Statement of Net Position ....................................................................................................................................... 33 Statement of Revenues, Expenses, and Changes in Net Position ..................................................................... 34 Statement of Cash Flows ........................................................................................................................................ 35 Fiduciary Fund Financial Statements:

Statement of Fiduciary Net Position ..................................................................................................................... 38 Statement of Changes in Fiduciary Net Position ................................................................................................. 39 Index to the Notes to the Basic Financial Statements .................................................................................................. 42 Notes to the Basic Financial Statements ......................................................................................................................... 44 i Page 97 of 702
City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
FINANCIAL SECTION (Continued)
Required Supplementary Information (Unaudited):

Budgetary Comparison Schedule – General Fund.................................................................................................................... 80 Budgetary Comparison Schedule – Grants Special Revenue Fund ....................................................................................... 81 Budgetary Comparison Schedule – Tyco Special Revenue Fund .......................................................................................... 82 Budgetary Comparison Schedule – RTI Undersea Cable Special Revenue Fund ............................................................... 83 Notes to the Budgetary Comparison Schedule .......................................................................................................................... 84 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Miscellaneous ............... 85 Schedule of the City's Proportionate Share of the Net Pension Liability and Related Ratios - Safety ............................. 86 Schedule of City’s Contributions – Pension - Miscellaneous ................................................................................................. 87 Schedule of City’s Contributions – Pension - Safety ............................................................................................................... 88 Schedule of Changes in Net OPEB Liability and Related Ratios .......................................................................................... 89 Schedule of the City's Contributions - OPEB ........................................................................................................................... 91 Supplementary Information:

Nonmajor Governmental Funds:

Combining Balance Sheet ............................................................................................................................................ 96 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances ........................................... 102 Schedule of Revenues, Expenditures, and Changes in Fund Balances – Budget and Actual Nonmajor Special Revenue Funds:

Lighting and Landscaping District ............................................................................................................... 108 State Gas Tax .................................................................................................................................................. 109 AB 939 ............................................................................................................................................................. 110 Prop A Open Space ........................................................................................................................................ 111 Tyco Tidelands ................................................................................................................................................ 112 Parks/Recreation Facilities Tax .................................................................................................................... 113 Bayview Drive Administrative Expense ..................................................................................................... 114 Beach Drive Assessment District Administrative Expense ...................................................................... 115 Proposition “C” ............................................................................................................................................... 116 Measure “R” .................................................................................................................................................... 117 Air Quality Management District ................................................................................................................. 118 Supplemental Law Enforcement Services................................................................................................... 119 Asset Seizure and Forfeiture ......................................................................................................................... 120 Fire Protection ................................................................................................................................................. 121 Measure “M” ................................................................................................................................................... 122 FEMA ............................................................................................................................................................... 123 RTI Undersea Cable Tidelands ..................................................................................................................... 124 Proposition “A” Transit ................................................................................................................................. 125 American Rescue Plan Act (ARPA) ............................................................................................................ 126 CARES Act ..................................................................................................................................................... 127 Measure “W” ................................................................................................................................................... 128 Sewer ................................................................................................................................................................ 129 Storm Drain ..................................................................................................................................................... 130 Nonmajor Debt Service Fund:
2015 Lease Revenue Bond ............................................................................................................................ 131

City of Hermosa Beach
Annual Comprehensive Financial Report
For the Year Ended June 30, 2024
Table of Contents (Continued)
Page
Supplementary Information (Continued):

Major Capital Project Fund:

Capital Improvements ................................................................................................................................... 132 Nonmajor Capital Project Fund:

Greenwich Underground ..............................................................................................................................133 Internal Service Funds:

Combining Schedule of Net Position ......................................................................................................................... 135 Combining Schedule of Revenues, Expenses, and Changes in Net Position ....................................................... 136 Combining Schedule of Cash Flows .......................................................................................................................... 137 Fiduciary Fund Financial Statements:

Combining Schedule of Fiduciary Net Position ....................................................................................................... 139 Combining Schedule of Changes in Fiduciary Net Position .................................................................................. 141 STATISTICAL SECTION (Unaudited)
Net Position by Component ....................................................................................................................................................... 147 Changes in Position..................................................................................................................................................................... 149 Governmental Activities Tax Revenues By Source ............................................................................................................... 153 Fund Balances of Governmental Funds ................................................................................................................................... 155 Changes in Fund Balances of Governmental Funds .............................................................................................................. 157 General Government Tax Revenues By Source ..................................................................................................................... 159 Assessed Value and Estimated Actual Value of Taxable Property ...................................................................................... 160 Direct and Overlapping Property Tax Rates ........................................................................................................................... 161 Principal Property Taxpayers .................................................................................................................................................... 162 Property Tax Levies and Collections ....................................................................................................................................... 163 Construction Value and Property Value .................................................................................................................................. 164 Direct and Overlapping Debt ..................................................................................................................................................... 165 Legal Debt Margin Information ................................................................................................................................................ 167 Ratios of Outstanding Debt by Type ........................................................................................................................................ 169 Ratios of General Bonded Debt Outstanding .......................................................................................................................... 170 Demographic and Economic Statistics ..................................................................................................................................... 172 Principal Employers .................................................................................................................................................................... 173 Full-Time and Part-Time City Employees by Function ........................................................................................................ 174 Operating Indicators by Function ............................................................................................................................................. 175 Capital Asset Statistics by Function ......................................................................................................................................... 176

OTHER REPORT
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Preformed in Accordance with Government Auditing Standards .......................................................... 179 iii

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iv

v
March 31, 2025
Honorable Mayor and Members of the City Council and Citizens of Hermosa Beach, California:

Introduction
Presented herein is the Annual Comprehensive Financial Report (ACFR) of the City of Hermosa Beach for the fiscal year ended June 30, 2024. The report is intended to update readers on the status of the City’s financial position and results of operations for the past fiscal year.

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

Audit
The City of Hermosa Beach’s financial statements have been audited by Gruber and Lopez, Inc., a firm of licensed certified public accountants. The goal of the independent audit was to provide reasonable assurance that the financial statements of the City of Hermosa Beach for the fiscal year ended June 30, 2024, are free of material misstatement. The independent audit involved examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements; assessing the accounting principles used and significant estimates made by management; and evaluating the overall financial statement presentation. The independent auditor concluded, based upon the audit, that there was a reasonable basis for rendering an unmodified opinion that the City of Hermosa Beach’s financial statements for the fiscal year ended June 30, 2024, are fairly presented in conformity with GAAP. The independent auditors’ report is presented as the first component of the financial section of this report.

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

City of Hermosa Beach
Civic Center, 1315 Valley Drive, Hermosa Beach, CA 90254-3885

vi
Profile of the Government
The City of Hermosa Beach is a
beachfront, bedroom community with a
stable population, located four miles
south of Los Angeles International
Airport. The City occupies 1.4 square
miles and serves a population of 19,088,
according to the State’s latest population
estimate. However, as a beach city, the
City experiences a high visitor population
and the associated costs. Due to this high
visitor population, the City operates in
many ways like a larger city. During the
2023–24 fiscal year, beach attendance
ranged from a low of 51,480 in February
2024 to a high of 597,500 in July 2023,
according to the Los Angeles County Fire
Department, Lifeguard Division.

The City of Hermosa Beach, incorporated on January 14, 1907 as a general law city, operates under the Council-Manager form of government. Policy-making and legislative authority are vested in a governing council consisting of five members of the City Council elected on a non-partisan basis at large for a fouryear term. Council members serve staggered terms, with an election every two years. One member is chosen by fellow members to serve as Mayor for a period of approximately nine months; one is chosen to serve as Mayor Pro Tem.

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

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

Selected information from the U.S. Census Bureau’s Quick Facts is shown on the following page.

vii
The U.S. Census Bureau Quick Facts are as of January 2025. Further data regarding the City may be found in the Statistical Section.

The annual budget serves as the foundation for the City of Hermosa Beach’s financial planning and control. All departments of the City of Hermosa Beach are required to submit revenue estimates and requests for appropriations to the Administrative Services Director according to a budget calendar. The Administrative Services Director and City Manager use these requests as the starting point for developing a proposed budget, which is presented to the City Council for review by May 15. At least one public budget workshop is held prior to the required public hearing, with adoption required no later than June 30. If the City Council fails to adopt a budget by that date, the budget submitted by the City Manager, as amended by the City Council, if applicable, is the appropriated budget except for capital improvement outlays. The appropriated budget is prepared by fund and department (e.g., Police Department). The City Manager may make transfers of appropriations between departments within each fund; transfers of appropriations between funds, however, require the approval of the City Council. The City Council receives monthly revenue and expenditure reports during the year and a midyear budget review is conducted after the first six months of the fiscal year to ensure estimates are on target. Budgetto-actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. The FEMA Special Revenue Fund and the Loma District Category Hermosa Beach California Category Hermosa Beach California Persons under 5 years,
2023 estimate 3.8% 5.6%
Persons under 18 years,
2023 estimate 20.4% 22.2%
Persons 65 years and
over, 2023 estimate 14.2% 16.2%
Female persons, 2023
estimate 48.2% 50.0%
Non-Hispanic White 72.8% 34.3% Hispanic 9.9% 40.4%
Non-Hispanic Black 0.6% 6.5%
Non-Hispanic
American Indian 0.1% 1.7%
Non-Hispanic Asian 7.4% 16.5%
Persons per households,
2019-2023 2.15 2.86
Bachelor's Degree or
higher, persons age 25+,
2019-2023 76.5% 36.5%
High School graduate or
higher, persons age 25+,
2019-2023 98.5% 84.6%
Per capita income in the
past 12 months (2023
dollars), 2019-2023 $110,660 $47,977
Persons below poverty
level, 2019-2023 5.3% 12.0%
Households, 2019-2023 8,922 12,434,847
Owner-occupied
housing units, 2019-
2023 50.7% 55.8%
Median value of owneroccupied housing units,
2019-2023 2,000,000 + $695,400
Housing units in multiunit structures, 2023 45.9% 35.5% Households with a
computer, 2019-2023 98.8% 96.4%
Mean travel time to
work, 2019-2023 29.2 minutes 29 minutes
U.S. CENSUS BUREAU QUICK FACTS

viii
Administrative Expense fund did not have an adopted budget due to no estimated revenue or appropriations. For the General Fund and major governmental funds with appropriated annual budgets, this comparison is presented as Required Supplementary Information on pages 80–91. For non-major governmental funds with appropriated annual budgets, this comparison is presented as Supplementary Information, after the Notes to the Financial Statements.

Factors Affecting Financial Condition
American Rescue Plan Act (ARPA) of 2021. The City received $4,621,755 in federal funds in two payments. ARPA funds include the following eligible uses:

1. To respond to the public health emergency with respect to the Coronavirus Disease 2019 (COVID19) or its negative economic impacts, including assistance to households, small businesses, and nonprofits, or aid to impact industries such as tourism, travel, and hospitality; or

2. To respond to workers performing essential work during the COVID-19 public health emergency by providing premium pay to eligible workers of the State, territory, or Tribal/local government that are performing such essential work, or by providing grants to eligible employers that have eligible workers who perform essential work; or

3. For the provision of government services to the extent of the reduction in revenue of such State, territory, or Tribal/local government due to the COVID-19 public health emergency relative to revenues collected in the most recent full fiscal year of the State, territory, or Tribal government prior to the emergency; or

4. To make necessary investments in water, sewer, or broadband infrastructure.

The covered period for eligible expenditures is March 21, 2021 to December 31, 2024. Costs can be obligated by December 31, 2024, but must be expended by December 31, 2026. See the Management Discussion and Analysis for more information about the City’s use of ARPA funding.

Local economy. With a General Fund revenue increase of 10 percent, the local economy continued recovery from the rapid downturn in 2020 due to the pandemic.

Hermosa Beach is a “bedroom community” as evidenced by a household count of 8,922 and an in-city business count of 732 (excluding apartments and home occupations).

Growth in secured and unsecured valuation for Hermosa Beach is 8.5 as compared to 5.9 percent for Los Angeles County. The 8.5 percent growth was the 8th highest of 88 cities in Los Angeles County.

The table below shows the comparison of median home prices between Hermosa Beach and Los Angeles County.

Median Home Prices Average Home Prices
June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Hermosa Beach $ 2,400,000 $ 2,995,000 $ 2,945,130 $ 4,871,680 Los Angeles County $ 960,000 $ 870,000 $ 1,379,675 $ 1,284,196 General Fund Secured Property Taxes increased 8 percent in 2023–24, consistent with growth in assessed values. Historically, property adjacent to the beach has held its value better and has grown faster as compared to property in the other areas.

As a beach city, the three highest occupations are management, sales, and advertising/marketing.

Residents typically enjoy access to a much more diverse employment base with the proximity of all the other cities in Los Angeles County. The unemployment rate in Hermosa Beach as of June 2024 is 3.6 percent, compared with 5.9 percent for Los Angeles County and 5.2 percent for California. The rates are

ix
higher than June 2023 City, County and State rates of 3.2 percent, 5.3 percent and 4.9 percent, respectively.

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

Accounting changes. In 2014–15 the City implemented Government Accounting Standards Board (GASB) Statement No 68, Accounting and Financial Reporting for Pensions, which required net pension liabilities to be included in the financial statements for the first time, and Statement No 71, Pension Transition for Contributions Made Subsequent to the Measurement Date, which was essentially a cleanup provision. Net pension liabilities of $63,332,807 were recorded in 2023–24 and the unrestricted net position was reduced accordingly. The change in accounting standards impacted only the government-wide financial statements, notes, and required supplemental information. There is no impact to the fund financial statements. See Note 9 for more information.

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

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

In 2021–22 City implemented GASB 87, Leases, which establishes a single model for lease accounting based on the underlying principle that leases are financings of the right to use the underlying asset.

Under this statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about government’s leasing activities. For more information see Note 1, Section Q- Leases Receivable, and Note 4- Lease Revenues.

In 2022–23 the City implemented GASB 96, Subscription-Based Information Technology Arrangements.

The primary objective of GASB 96 is to enhance the relevance and consistency about governments’ subscription activities. Under this Statement, the City is required to recognize a subscription liability and intangible right-to-use subsection asset as described in Note 1, Section R- Lease Payable and Subscription Agreements Payable, and Note 7.

In 2023–24 the City implemented GASB 100, Accounting Changes and Error Corrections. The primary objective of GASB 100 is to provide more understandable, reliable, relevant, consistent, and comparable information for making decisions or assessing accountability. For more information see Note 1, Section S- Accounting Changes, and Note 14- Prior Period Adjustments.

California Public Employees Retirement System (CalPERS). The preliminary CalPERS investment return as of June 2024 was 9.3 percent, bringing the total fund performance to 6.6 percent for the fiveyear period, 6.2 percent for the ten-year period, and 6.7 percent for the twenty-year period. The investment return out passed the CalPERS discount rate of 6.8 percent, increasing the estimated overall funded status to 75 percent.

The 2020–21 rate of return triggered a reduction in the discount rate used to calculate employer and Public Employee’s Pension Reform Act (PEPRA) member contributions due to the Funding Risk Mitigation Policy approved in 2015. The Funding Risk Mitigation policy lowers the discount rate in years of good investment returns. The discount rate, or assumed rate of return, dropped from 7 percent to 6.8 percent. This was the first time the policy has been triggered.

In February 2018, CalPERS adopted a new amortization policy. The new policy applies only to newly established amortization bases and requires fixed dollar (level) amortization rather than percent of pay (escalating). Gains and losses are amortized over 20 rather than 30 years, with a five-year ramp up for investment gains and losses (no ramp down) and no ramp up or down for other amortization bases. The

x
policy minimizes total interest paid over time and pays off UAL faster. It was effective with the June 30, 2019 valuation for 2021–22 contributions.

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

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

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

The City created a Retirement Stabilization Fund in 2003-04 to plan for anticipated rate increases. This amount now appears as part of the “committed” balance in the General Fund in the amount of $1,021,575. Funds were approved by City Council to be placed in a retirement trust, but the plan for a trust was paused due to COVID-19 and will be reevaluated.

Long-term financial planning. The City’ adopted financial policies address a range of items including accounting and reporting, internal controls, budget, revenue, debt service and investments. The policies are published in the budget and reviewed annually.

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

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

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

Contingency—Goal equal to 1 percent of the General Fund appropriations for economic uncertainties, unforeseen emergencies. The goal was increased to 20 percent starting fiscal year 2023–24.

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

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

The City had unspent funds of $3,128,672 in 2023–24 because of improved revenue and salary savings due to vacant positions and employee leaves. As a part of the 2024–25 Budget adoption process, the City Council approved the transfer of 2023–24 unspent funds in the General Fund to the Insurance Fund and Capital Improvement Fund. $425,521 was transferred as of June 30, 2024 from the General Fund to the Insurance Fund to increase the fund balance to $3 million. The remaining $2,703,151 was transferred to the Capital Improvement Fund to fund future needs.

As part of the budget process, a five-year financial forecast is developed and presented with the Preliminary Budget and Five-Year Capital Improvement Program.

Primary capital projects coming up, (other than street and sewer improvements, which occur every year) include Bus Stop Improvements, Pay-By-Space Street Parking, Utility Box Wrappings, Gateway and

xi
Wayfinding Signs Conceptual Design, PCH Mobility Improvement Project, Hermosa Avenue Green Street, Pedestrian Crossing Safety Improvements, Greenbelt Pedestrian Trail, City Park Lighting Conceptual Design, Citywide Park Master Plan, South Park Slope, Irrigation, and Landscape Improvements, City Wide ADA Improvements, Forts Lots-O-Fun Park Wall and Gate Improvements, Kelly Courts Improvements, Stormwater Dry Wells, City Facilities Condition and Needs Assessment, New Corporate Yard Facility, Civic Center Charging Stations, Tsunami Siren, Citywide Roof Repair, Comprehensive Downtown Lighting Design, Pier Structural Inspections and Evaluation, Clark Building Renovations, Parking Lot D Improvements, Real Time Crime Center, CDBG Improvements, ADA Improvements, and Parking Structure (Lot C) Improvements.

Cash management policies and practices. Temporarily idle cash was invested during the year in obligations of the U.S. Treasury, certificates of deposit, the State Treasurer's investment pool and the Los Angeles County pool. The average maturity was 59.2 months, with an average weighted yield on investments of 2.1 percent. Investment income includes changes in the fair value of investments.

Changes in fair value during the current year, however, do not necessarily represent trends that will continue nor do such amounts necessarily become realized since the City intends to hold the investments to maturity.

Risk management. The City is self-insured up to $250,000 for liability claims. Through a blend of selfinsurance and reinsurance, the City has excess coverage up to $30 million obtained through the California Joint Powers Insurance Authority (CJPIA), a joint powers authority consisting of mediumsized California municipalities. The cost of the insurance depends on both the loss experience of member cities, the loss experience of the City and the City’s payroll size.

The City purchases workers’ compensation coverage through a self-insured program available through CJPIA. The City maintains a $250,000 self-insured retention limit and participates in a self-insured risk sharing pool through CJPIA, with excess coverage through Safety National Casualty Company, providing coverage up to the statutory limits.

Claims defense and settlement are coordinated by third party administrators for both liability and worker's compensation, with oversight by the Human Resources Manager.

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

Pension and other post-employment benefits. The City provides pension benefits to safety and nonsafety employees through the California Public Employees Retirement System (CalPERS). CalPERS provides retirement and disability benefits, annual cost-of-living adjustments and death benefits to plan members and beneficiaries. The City was successful in negotiating two tier rates for new employees in all bargaining units beginning in 2011-12. With the State’s pension reform implemented January 1, 2013, the City now has three tiers. As of June 30, 2024, the City has thirty-one (31) active Tier 1 employees, twentyone (21) active Tier 2 employees and one hundred (100) active employees in Tier 3. The City paid employee contributions as a negotiated benefit for many years however in 2012–13 the City negotiated that employees would begin paying the entire share of the employee contribution over three years with an offsetting increase in salaries, which was achieved as of 2014-15. All of these changes enacted reduce pension costs over time. City employer contributions are actuarially determined on an annual basis.

The City also provides post-employment health care benefits for certain retirees. As of the end of the current fiscal year, there were eighty-three (83) retirees receiving these benefits. The OPEB trust is currently 150.6 percent funded. Additional information on the City’s other postemployment benefit plan can be found in Note 10 of the Notes to the Financial Statements.

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

xii
aside in the 2019–20 to be placed in the retirement trust. The trust was put on hold due to the COVID-19 pandemic and will be reevaluated.

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

Awards and Acknowledgements
The Government Finance Officers Association (GFOA) awarded a 2023 Certificate of Achievement for Excellence in Financial Reporting to the City of Hermosa Beach for its Annual Comprehensive Financial Report for the fiscal year ended June 30, 2023 which was the thirty-second consecutive year that the City has received this prestigious award. In order to be awarded a Certificate of Achievement, a report must be published that satisfies both GAAP and applicable legal requirements.

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

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

Respectfully submitted,
Brandon Walker
Administrative Services Director

CITY OF HERMOSA BEACH ORGANIZATIONAL CHART

ELECTORATE

CITY COUNCIL

PLANNING

COMMISSION
PUBLIC
WORKS

COMMISSION
BOARD
OF

APPEALS

PARKS &

RECREATION

ADVISORY

COMMISSION

CITY TREASURER
CITY

MANAGER
CITY
MANAGER’S
OFFICE
POLICE
CITY

ATTORNEY
CITY

PROSECUTOR
CIVIL

SERVICE
BOARD

CITY CLERK

DEPARMENT

COMMUNITY

DEVELOPMENT COMMUNITY

RESOURCES

FINANCE
HUMAN

RESOURCES/RISK

MANAGEMENT

PUBLIC WORKS

BUILDING AND SAFETY
Plan Checking; Field Inspection; Code
Enforcement

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

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

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

YOUTH PROGRAMS
After School Programs; Summer Camps

PERMITTING
Special Events; Filming; Outdoor Fitness
Instruction

FINANCE ADMINISTRATION
Budget; Accounting; Payroll

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

HUMAN RESOURCES
Recruitment; Training; Labor Relations

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

FIELD OPERATIONS
Patrol Bureau; Traffic Bureau; Community Lead

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

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

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

MAINTENANCE
Landscaping; Irrigation; Street; Sewers;
Storm Drains; Building Maint.; Vehicle
Maint.
[LLL Page 109 of 702
xiv

PRINCIPAL OFFICIALS OF THE CITY OF HERMOSA BEACH, CALIFORNIA June 30, 2024
Elected and Administrative Officials
City Council
Justin Massey Mayor
Dean Francois Mayor Pro Tem
Michael Detoy Councilmember
Raymond Jackson Councilmember
Rob Saemann Councilmember

Other Elected Official
Karen Nowicki City Treasurer
Administrative Officials
Suja Lowenthal City Manager
Myra Maravilla City Clerk
Angela Crespi Deputy City Manager
Carrie Tai Community Development
Director
Lisa Nichols Community Resources
Manager
Viki Copeland Finance Director
Vanessa Godinez Human Resources
Manager
Paul LeBaron Police Chief
Joseph San Clemente Public Works Director

Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Hermosa Beach
California
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2023
Executive Director/CEO
xv Page 111 of 702
To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California
Independent Auditors’ Report
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California, as of and for the year ended June 30, 2024, and the related notes to the financial statements, which collectively comprise the City of Hermosa Beach, California’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Hermosa Beach, California, as of June 30, 2024, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Hermosa Beach, California, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

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

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Hermosa Beach, California’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions.

Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
438 Old Newport Blvd – Newport Beach, CA 92663
Phone (949) 346-2900 – www.gruberlopezinc.com

To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California

In performing an audit in accordance with generally accepted auditing standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Hermosa Beach, California’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Hermosa Beach, California’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, Budgetary Comparison Schedules, Schedule of Proportionate Share of the Net Pension Liability and Related Ratios, Schedule of Contributions - Pension, Schedule of Changes in Net OPEB Liability and Related Ratios, and Schedule of City’s Contribution - OPEB on pages 85 to 88 and 89 to 91, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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

To the Honorable Mayor and Members of the City Council
of the City of Hermosa Beach
Hermosa Beach, California

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

The Introductory and Statistical Sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on them.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2025, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.

GRUBER AND LOPEZ, INC.

Newport Beach, California
March 28, 2025
3 Grube and Lopez, Inc.

4 Management's Discussion and Analysis
As management of the City of Hermosa Beach, we offer readers of the City’s financial statements this narrative overview and analysis of the financial activities of the City of Hermosa Beach for the fiscal year ended June 30, 2024. We encourage readers to consider the information presented here in conjunction with additional information that is furnished in the letter of transmittal, which can be found on pages v - xii of this report.

Financial Highlights
• The assets and deferred outflows of resources of the City of Hermosa Beach exceeded its liabilities and deferred inflows of resources at the close of the last fiscal year by $88,097,585 (net position). Unrestricted net position has a deficit balance of $4,374,704. Excluding the $63,332,807 aggregate net pension liability, $58,958,103 represents unrestricted net position and may be used to meet the government's ongoing obligations. • The City’s net position increased by $7,388,372.
• As of June 30, 2024, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $49,447,935, an increase of $2,261,575 in comparison with the prior year. This increase is due to revenue exceeding expenditures in the current year.  At the end of the current fiscal year, the City of Hermosa Beach’s governmental fund balances of $49,447,935 are comprised of non-spendable funds of $968,992; restricted funds of $14,298,347; committed funds of $5,534,504; and assigned funds of $29,698,349 to indicate that funds are not available for new spending. Although funds are shown in the committed or assigned category, the City Council still does have discretion over the use of these funds and may change the committed or assigned use. Under that scenario, approximately 71 percent, or $35,232,853 of the $49,447,935 in funds could be redirected at the discretion of the City Council.

Unassigned is -$1,052,257. See Note 11 in the Notes to the Basic Financial Statements.  At the end of 2023–24, $3,128,672 of unspent General Fund funds was due to a result of increased revenue and lower expenditures due to vacancies, underfilled positions and anticipated City street and park repairs that were appropriated but not required this fiscal year. The $3,128,672 of unspent funds were transferred to the Insurance Fund for $425,521 and to the Capital Improvement Projects fund for $2,703,151 at the end of the fiscal year. The General Fund also has a committed and assigned fund balance of $15,527,270 or 33 percent of total General Fund expenditures.

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

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

The Statement of Net Position presents information on all the City of Hermosa Beach’s assets plus deferred outflows or resources (“DOR”) and liabilities plus deferred inflows of resources (“DIR”), with the difference between the assets plus DOR and liabilities plus DIR reported as net position.

5 Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Hermosa Beach is improving or deteriorating.

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

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

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

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

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

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

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

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

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

General Fund
Grants Special Revenue Fund
Tyco Special Revenue Fund
RTI Undersea Cable Special Revenue Fund
Capital Improvement Capital Projects Fund

6 Major funds are governmental or enterprise funds whose revenues, expenditures/expenses, assets and DOR or liabilities and DIR are at least 10 percent of corresponding totals for all governmental or enterprise funds and at least 5 percent of the corresponding total for all governmental and enterprise funds combined.

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

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

The basic governmental fund financial statements can be found on pages 25-30 of this report.

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

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

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

The basic proprietary fund financial statements can be found on pages 33-35 of this report.

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

The fiduciary fund financial statements can be found on pages 38-39 of this report.

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

The notes to the financial statements can be found on pages 44-78 of this report.

Required supplementary information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City of Hermosa Beach’s major funds. Required supplementary information can be found on pages 80-91 of this report.

Other supplementary information. The combining statements referred to earlier in connection with non-major governmental funds and internal service funds are presented immediately

7 following the required supplementary information. Other supplementary information can be found on pages 96-144 of this report.

Government-wide Financial Analysis
As noted earlier, net position may serve over time as a useful indicator of a government's financial position. As of June 30, 2024, total assets and deferred outflows of resources exceeded total liabilities and deferred inflows of resources by $88,097,585. Without the net pension liability of $58,629,189, the net position would be $146,726,774.

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

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

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

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

The major components of GASB 68 and GASB 75 that affect the Statement of Net Position for Government-wide are:
 Deferred Outflows of Resources- Includes the deferred pension and OPEB contribution, which is equal to the total amount of the 2023–24 contributions. The contributions are deferred to 2024–25 because the net liability balance is one year in arrears. Also includes changes in assumptions, the difference between projected and actual investment earrings and the difference between the employer contributions and the employer’s proportionate share of contributions (for pensions).
 Net Pension and Net OPEB Liabilities (recorded in Long-Term Liabilities) - Represents the actuarially valued liabilities Plans as of June 30, 2023.  Deferred Inflows of Resources- Includes changes in assumptions, the difference between the expected and actual earnings on investments (amortized on a straight-line basis over five years), changes in employer’s proportion (for pensions), and differences between employer contributions and the employer’s proportionate share of contributions (for pensions).

8 Net Position
June 30, 2024
(dollars in thousands)

Governmental Activities
2024 2023
Current Assets 84,007 81,184
Capital Assets 72,320 68,247
Noncurrent Assets 5,848 377
Total Assets 162,175 149,808

Deferred Outflows 28,336 30,208

Current Liabilities 7,945 8,939

Noncurrent Liabilities:

Net Pension Liability 63,332 59,359
Long Term Liabilities 14,896 15,483

Total Liabilities 86,173 83,781

Deferred Inflows 16,250 15,536

Net Position: 88,087 80,699

Net Invest in Cap Assets 72,320 67,871
Restricted 20,142 13,557
Unrestricted -4,375 -729
Total Net Position 88,087 80,699
The largest portion of the City of Hermosa Beach’s net position $88,087,263 reflects its investment in capital assets (e.g., land, buildings, machinery, and equipment). The City of Hermosa Beach uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending.

A portion of the City of Hermosa Beach’s net position $20,141,771 represents resources that are subject to external restrictions on how they may be used.

Compliance with GASB 68 and GASB 75 require that the City’s net pension and OPEB liabilities are recorded on the Statement of Net Position, which reduces unrestricted net position and creates a negative unrestricted net position or deficit of -$4,374,704. Excluding the $63,332,807 net pension liability, $58,958,103 is available to meet the City’s ongoing obligations to residents.

At June 30, 2024, the City is able to report positive balances in all categories of net position for the government as a whole except for unrestricted due to the implementation of GASB 68 and the inclusion of the net pension liability, which will likely remain a long-term liability for several decades. The following is the condensed Statement of Activities and Changes in Net Position for the fiscal years ending June 30, 2024 and June 30, 2023.

Governmental Activities. Governmental activities increased the City of Hermosa Beach’s net position by $7,388,372. Significant elements of this change are as follows:

9 Change in Net Position
June 30 2024
(dollars in thousands)

Governmental Activities
2024 2023
Revenues:

Program Revenues:

Charges For Services 11,521 9,970
Operating Grants and Contributions 4,097 7,956
Capital Grants and Contributions 2,825 -47
General Revenues:

Property Taxes 24,975 23,146
Other Taxes 13,564 14,214
Grants and Contributions Not
Restricted 2,717 2,200
Other 2,876 1,828
Total Revenues 62,575 59,267

Expenses:

Legislative and Legal 1,829 1,450
General Government 7,293 5,522
Public Safety 29,781 24,019
Community Development 2,655 1,963
Culture and Recreation 2,486 1,878
Public Works 11,019 9,693
Interest and Fiscal Charges 124 258
Total Expenses 55,187 44,783

Increase (Decrease) in Net Position 7,388 14,484
Net Position - Beginning 80,699 66,215
Net Position - Ending 88,087 80,699

Revenue for Governmental Activities
 Property tax revenue increased $1,829,501 or 7 percent, which is in line with continued growth in property values.
 Sales Tax revenue increased by $150,689 or 4 percent, primarily due to an increase in the County and State Pools.
 Transient Occupancy Tax (TOT) revenue decreased by $208,882 or 4 percent, presumably due to decreased room rates. The overall occupancy rate for hotels in 2023- 24 was 70 percent compared to 79 percent in 2022-23. A new hotel was added in April 2023 and the number of permitted short-term vacation rentals increased in 2022–23 from five to eight.
 Utility User Tax was down $20,718 or 1 percent. The largest decrease was in the category natural gas service.

10  Operating Grants & Contributions decreased by $3,859,539 or 49 percent due to prior fiscal year one time payments. In the prior year, the City received the second final half of the American Rescue Plan Act of 2021 (ARPA) allocation for $2,369,269. Other one time payments received in the prior fiscal year included a $443,560 reimbursement of MTA Measure R grant funds and also CDBG funds for ADA related CIPs, and FEMA reimbursement for Covid-19 related expenditures.
 Capital Grants & Contributions increased by $2,872,056 primarily due to recognition of State Departments of Park and Recreation grant revenue to perform structural and electrical repairs of the City’s Municipal Pier. The negative prior year balance is due to the restated net position which corrected the overstatement of revenue primarily in Measure W per GASB 100. See Note 14 for more information.  Real Property Transfer Tax was flat and decreased by $18,825.  Charges for services increased by $1,551,290 or 15 percent primarily due to the increase in parking related revenue due to rate changes. Parking meter rates on street and in downtown lots were increased from $1.25 per hour to $2.00 per hour. From 8:00 p.m. to 2:00 a.m. rates were increased from $1.50 per hour to $2.50 per hour.

Revenue: 2024 2023 Property Taxes $ 24,975,484 $ 23,145,983 Charges for Services 11,521,140 9,969,850
Operating Grants& Contributions 4,096,793 7,956,332
Transient Occupancy Tax (TOT) 4,942,254 5,151,136
Sales Tax 3,772,564 3,621,875
Utility Users Taxes 2,741,200 2,761,918
Other Taxes 2,108,199 2,679,129
Grants & Contributions not Restricted 2,716,844 2,200,305 Miscellaneous 2,876,823 1,828,531
Capital Grant & Contributions 2,824,689 (47,367)
Total Revenues $ 62,575,990 $ 59,267,692
Charges For
Services,

18.4%
Operating
Grants &
Contributions,

6.5%
Capital Grants
&
Contributions,
Property 4.5%
Taxes, 40.0%
Other Taxes,

21.7%
Grants and
Contributions
Not Restricted,

4.3%
Miscellaneous,

4.6%
Revenue by Source - Government Activities

11 Expenses for Governmental Activities
Expenses for Governmental Activities increased by $10,403,764 or 23 percent. The increase was primarily due to GASB 68 pension obligation adjustments compared to the prior fiscal year.

Legislative and Legal expenses increased by $378,318 or 26 percent. This is primarily due to GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments.

Reviewing costs in the governmental funds, there were increased staffing costs in the City Clerk’s office due to the hiring of a Senior Office Assistant. Contract services costs also increased due to consulting work related to updating the City’s records retention schedule and City records organization.

General Government increased by $1,771,318 or 32 percent. This is primarily due to GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. Reviewing costs in the governmental funds, there were increased salary and benefit costs due to creating a Senior Finance Analyst positions in Finance. There was also an increase in contract services as the City performed mobile mental health services to unhoused residents due to a Federal grant the City received from the U.S. Department of Health and Human Services.

Public Works expenses increased by $1,325,348 or 14 percent. There were increased staff costs due to the addition of the new Public Works Assistant Superintendent position and creating of four Maintenance II positions.

Community Development expenses increased by $692,614 or 35 percent. This is primarily due to increased salary and benefit costs as the Community Development department was fully staffed for the fiscal year compared to the prior year.

Culture and Recreation expenses increased by $607,621 or 33 percent. This is primarily due to GASB 68 and 75 recording of the department’s share of the pension and OPEB obligation adjustments. Reviewing costs in the governmental funds, expenditures increased slightly due to the hiring of a newly created Recreation Specialist position.

Public Safety increased by $5,762,038 or 24 percent. This is primarily due to GASB 68 recording of the department’s share of the pension obligation adjustments. Reviewing costs in the governmental funds, expenditures were up due to an increase in contract services costs for Fire Services and retirement costs related to the Fire unfunded liability annual payment. Additionally, staff costs increased in Police Services as Police Officer positions were filled.

Interest and fiscal charges decreased in 2023–24 in the amount of $133,493 or 52 percent.

12 Financial Analysis of the Government’s Funds
As noted earlier, the City of Hermosa Beach uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.

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

As of the end of the current fiscal year, the City of Hermosa Beach’s governmental funds reported combined ending fund balances of $49,447,935, an increase of $2,261,575 in comparison with the prior fiscal year. See Note 11 for more information. The total fund balances of the governmental funds consist of the following:
 Non-spendable fund balances of $973,452 due to prepaid other assets. The other assets are primarily comprised of prepaid medical stipend benefits for City employee retirees.  Restricted fund balance of $14,293,887 which have restrictions imposed by external parties or enabling legislation. Funds in this category include Lighting District Funds, Gas Tax Funds, Proposition A and C Transportation Funds, Measure R, M and W Funds, Asset Forfeiture Funds, Supplemental Law Enforcement Funds (COPS), Fire Protection Funds, and Sewer and Storm Drain Funds.
 Committed fund balance of $5,534,504 which includes retirement stabilization funds, parking in lieu fees, and reserves for a retirement trust.
 Assigned fund balance of $29,698,349 which includes the amounts to be used for specific purposes of the City, but that do not meet the criteria to be classified as restricted or committed. Funds in this category include Contingency funds (“rainy day” funds), Compensated Absences funds, Capital Projects, Capital Improvements, Capital Facilities Reserve, and Storm Drain funds. $-
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
Expenses and Program Revenues
Governmental Activities
Expenses Revenue

13  Unassigned fund balance of -$1,052,257, which reflects the fund balance shortfall of -$300,667 in the Grants Special Revenue Fund, and fund balance shortfalls in the following non major governmental funds; -$24,425 in the Lighting and Landscape District Fund, -$75,566 in the Prop A Open Space Fund, -$93 in the Loma District Administrative Expense Fund and -$651,506 in the FEMA Fund. The shortfall in the FEMA fund are due to grant or COVID-19 related claim expenditures incurred in the FEMA Fund that are awaiting reimbursement.

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

The General Fund balance decreased in 2023-24 by $2,101,479. While there were unspent funds remaining of $3,128,672, there was transfers out of $9,551,008, including one-time transfers out of $425,521 to the Insurance Fund to meet the funding goal, and $2,703,151 to the Capital Improvement Capital Projects Fund to fund future CIP needs.

Overall General Fund revenue increased by 10 percent over 2022–23. The increase is a result of the following: an increase in property taxes of 8 percent; an increase in other taxes of 0.4 percent; an increase in fines and forfeitures of 1 percent; an increase in intergovernmental of 69 percent; an increase in charges for services of 34 percent; and an increase in miscellaneous revenue of 33 percent. The increases were partially offset by a decrease in licenses and permits of 17 percent; a decrease in use of money of 33 percent; and a decrease in miscellaneous of 25 percent. Interest earned on investments is positive $976,070 due to unrealized gains on investments.

General Fund expenditures show an increase of 8 percent as staffing and operations normalized from the COVID-19 reductions and due to salary increases per the 2nd year of the City bargaining unit Memoranda of Understandings (MOU’s). The increase is primarily due to General Government, Public Safety, Community Development, Culture and Recreation, Public Works and Capital Outlay. The City’s leadership has worked on a recruitment and retention strategy to fill positions that were previously frozen during the Covid-19 pandemic and new positions that were added in the 2023–24 budget.

General Fund Budgetary Highlights
The final amended budget for revenue other than transfers increased by 1 percent from the adopted budget, based on revenue trends from the first five months of the year. Actual revenue was over the final budget by $856,450 or 1 percent for the following reasons:
 Property tax was up $29,661.
 Other taxes were down $368,608, or 3 percent primarily due to a decrease in transient occupancy tax (TOT) and utility user tax (UUT), and franchise fees, which were partially offset by an increase in sales tax, as previously noted.  Licenses and Permits were up $104,465 or 14 percent primarily due to building permit revenue, which came in at 65 percent of budget.
 Fines and forfeitures were down $172,851 or 18 percent due to a decrease in parking related court fines offset by an increase in administrative citations.  Charges for Services were up $810,761 or 9 percent primarily due to an increase in parking meter revenue.

14  Interest was up $222,045 or 35 percent primarily due to the recording of unrealized gains on investments, which is not budgeted.

The final amended budget for appropriations other than Transfers Out increased over the original budget by 1 percent. Actual expenditures other than Transfers Out were less than the final appropriations by 8 percent primarily due to anticipated emergency street and park repairs that were not needed and unspent one-time appropriations which may be requested for reappropriation to the 2024–25 budget.

Capital Asset and Debt Administration
Capital assets. The City of Hermosa Beach’s net investment in capital assets for its governmental activities as of June 30, 2024, amounts to $72,320,196 (net of accumulated depreciation). This investment in capital assets includes land, buildings and structures, improvements, machinery and equipment, park facilities, roads, highways, and monuments.

Major capital asset events during the fiscal year included the following:

Governmental Activities
 Citywide Bus Stop Improvements of $561,873
 Annual Prospect Avenue Street Improvements of $2,576,078  Bard Street Trailer / City Hall Annex Improvements of $300,618 Additional information on the City of Hermosa Beach’s capital assets can be found in Note 6.

Long-term Debt
In October 2020 the Hermosa Beach Public Financing Authority issued 2020 Lease Revenue Bonds to refund and defease the 2015 Lease Revenue Bonds issued to fund oil settlement costs. The refunding will save approximately $965,000 through 2035. Other long-term liabilities include net pension liability and compensated absences. See Note 7 and Note 9.

Grants Special Revenue Fund
The Grants Special Revenue Fund, reported a June 30, 2024 fund balance of -$300,667 due to unavailable revenue of $616,962. The City is in the process of receiving the final grant reimbursement related to CIP 629 Municipal Pier Structural Assessment and Repairs and CIP 660 Municipal Pier Electrical Repairs which was completed this fiscal year. The beginning fiscal year fund balance was restated to -$1,254,234 from -$1,185,409 from the previous fiscal year. This was to correct a net overstatement of revenue of $68,825. See Note 14.

Tyco Special Revenue Fund
The Tyco Fund is a major fund in 2023–24 due to the recording of leases receivable of $3,114,477 and a corresponding deferred inflows of resources for lease revenue from Tyco that will be recognized over the lease term. This is a change in accounting rules due to the implementation of GASB 87 in FY 2021– 22 , Leases, referred to in the Transmittal Letter and Note 1, Section R. For more information on the lease agreement, see Note 4 Lease Revenue. During the year ended June 30, 2024, the City recognized $215,852 in lease revenue and $250,274 in interest revenue during the current fiscal year related to the lease. There were capital outlay expenditures of $260,678. The fund balance as of June 30, 2024 is $2,121,402.

15 RTI Undersea Cable Special Revenue Fund
The RTI Undersea Cable Special Revenue Fund is a major fund again in 2023–24 due to the recording of leases receivable of $3,819,332 and a corresponding deferred inflows of resources for lease revenue from MC Global that will be recognized over the lease term. This is a change in accounting rules due to the implementation of GASB 87 in FY 2021–22, Leases, referred to in the Transmittal Letter and Note 1, Section R. For more information on the lease agreement, see Note 4- Lease Revenue. The fund balance as of June 30, 2024 is $1,157,867.

Capital Improvement Capital Projects Fund
Projects funded from the Capital Improvement Fund, a major fund, in 2023-24 include: Bus Stop Improvements, Annual Street Improvements, Utility Box Wrappings, Gateway and Wayfinding Signs PCH Traffic Improvements, Annual Prospect Avenue Street Improvements, Pedestrian Crossing Safety Improvements, City Sidewalk Improvements, Storm Drain Improvements, Greenbelt Pedestrian Trail, Citywide Park master Plan, Bard Trailer Improvements, Civic Center charging Stations, Municipal Pier Structure and Electrical Repairs, Clark Building Renovations, Police Station Restroom Improvements, Valley Park Restroom Renovations and Tree Well Grates.

Transfers in of $4,663,091 were made from $883,499 of 2021-22, $1,076,441 of 2022-23 and $2,703,151 of 2023-24 unspent funds from the General Fund. The ending fund balance of $16,426,314 includes $1,889,278 reserved for City Yard Construction and $841,393 reserved for future Capital Facilities.

Insurance Fund
The City’s established goal for net position in the Insurance Fund is $3,000,000 for unanticipated claims and catastrophic losses. Claims above recorded claims liabilities or catastrophic losses expenses and adjustments for actuarially determined claims payable were higher than expected this year. The Insurance Fund beginning balance was $1,879,001. The City met the established goal balance at June 30, 2024 resulting in the ending balance of $3,000,000 using transfers of $1,830,129 from the General Fund.

Economic Factors and Next Year's Budgets and Rates
 On April 25, 2017, the City Council voted to contract fire services in Hermosa Beach with the Los Angeles County Consolidated Fire District. Final payments to L.A. County Fire for the remaining six payments for renovation of the fire facility were made in 2023–24. The 2024–25 Budget also includes the following:
o $10,560,684 is committed for Contingency in the General Fund, which is an increase from the previous funding goal of 16 percent of operating expenditures to 20 percent and in line with the City’s financial policy and the Council goal for a “Financially Sound City Government”. No funds from the Contingency were used to offset any impact of COVID-19.
o $686,161 is transferred from the General Fund for the 2020 Refunding Lease Revenue Bonds debt service. The 2015 Lease Revenue Bonds were refunded in 2020–21, saving approximately $1 million over the life of the bonds. The bonds will be paid off in December 2035.
o $28.4 million of Capital Improvement Projects are funded, which includes $10.0 million in new funding.

16 o Three new full time positions are added, including a Lead Special Events and Filming Coordinator, Special Events and Filming Coordinator and Police Lieutenant. This is offset by the elimination of Police Sergeant and Community Services Manager positions.

Revenue Trends and Assumptions
Revenue for FY 2024–25 is estimated to increase 3 percent over FY 2023–24. The City’s is seeing revenue growth with property tax, the City’s largest revenue source. However, revenue growth is being absorbed by the increased costs of providing services to the community. Like many Cities, Hermosa Beach is experiencing the impact of inflation. Secured property tax, is projected to increase by 4 percent FY 2024–25. Property tax is the largest and most stable source of revenue for the City.

However it is offset by projected decreases to other taxes. Sales tax is projected to decrease 2 percent, transient occupancy tax is projected to decrease 1 percent and Utility User Tax is projected to decrease 1 percent for FY 2024-25.

The City has come through uncharted territory in the four years since the pandemic began in March of 2020 and subsequent worldwide uncertainty over the war in Ukraine, rising operational costs, and disruption in supply chains. No contingency or “rainy day funds" were used in FY 2023–24 or in the two previous fiscal years during the pandemic. The City Council increased the level of contingency funds from the current policy of 16 percent of operating budget to 20 percent with the 2023–24 Adopted Budget.

Unemployment continues to remain relatively low. In June 2023, the City unemployment rate was 3.2 percent versus June 2024 of 3.6 percent. Los Angeles County was 5.3 percent versus 5.9 percent as of June 2024. The State’s unemployment rate was 5.2 percent versus 4.9 percent in June 2023. The U.S unemployment rate increased from 3.6 percent in June 2023 to 4.1 percent in June 2024.

The City’s FY 2024–25 Budget prioritizes foundational investments in organization and infrastructure, seeks to protect the City’s long-term fiscal sustainability within its current funding realities, and reflects the community’s values and spending priorities. Since the 2024-25 Preliminary Budget is tightly balanced with revenue and appropriations equal, avoiding a deficit in two years will be challenging with Los Angeles County Fire negotiations, labor negotiations, and increasing pension costs pending.

On November 5, 2024, Measure HB was placed on the ballot to enact a ¾ cent General Transactions and Use (TUT) Tax which was projected to generate approximately $3.0 million in sales TUT tax revenue.

Measure HB was not passed by the voters. As such, considering Measure HB did not pass, the City must still continue to explore different revenue-generating approaches to protect Hermosa Beach’s future, maintain the current standard of service, and ensure a high quality of life for residents and businesses.

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

BASIC FINANCIAL STATEMENTS
17 Page 128 of 702

GOVERNMENT-WIDE

FINANCIAL STATEMENTS
18 Page 129 of 702
Primary
Government
Governmental
Activities
ASSETS
Current assets:

Cash and investments 67,810,162 $
Accounts receivable 4,382,111
Property taxes receivable, net 1,006,782
Reimbursable grants receivable 646,431
Leases receivable 8,896,734
Interest receivable on investments 289,819
Other assets 974,752
Total current assets 84,006,791
Noncurrent assets:

OPEB net asset 5,847,884
Capital assets:

Non-depreciable 31,647,426
Depreciable, net 40,672,770
Total capital assets 72,320,196
Total noncurrent assets 78,168,080
Total assets 162,174,871

DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows of resources 24,478,101 OPEB related deferred outflows of resources 3,858,343
Total deferred outflows of resources 28,336,444

CITY OF HERMOSA BEACH
Statement of Net Position
June 30, 2024
See accompanying notes to the basic financial statements. Page 130 of 702 19 Primary
Government
Governmental
Activities

LIABILITIES
Current liabilities:

Accounts payable and accrued liabilities 2,861,005
Accrued salaries and benefits payable 1,112,588
Refundable deposits 528,199
Unearned revenue 441,825
Interest payable 92,067
Workers' compensation claims payable - due within one year 902,838 General liability claims payable - due within one year 770,555 Compensated absences - due within one year 607,089
Long-term debt - due within one year 628,500
Total current liabilities 7,944,666
Noncurrent liabilities:

Workers' compensation claims payable - due in more than one year 4,619,676 General liability claims payable - due in more than one year 1,096,483 Compensated absences - due in more than one year 1,781,944 Long-term debt 7,397,638
Aggregate net pension liability 63,332,807
Total noncurrent liabilities 78,228,548
Total liabilities 86,173,214

DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows of resources 2,878,500 OPEB related deferred inflows of resources 4,475,604
Leases related deferred inflows of resources 8,896,734
Total deferred inflows of resources 16,250,838

NET POSITION
Net investment in capital assets 72,320,196
Restricted for:

OPEB Asset 5,847,884
Capital projects 2,705,498
Street and sewer purposes 5,330,413
Transportation purposes 2,533,261
Public works 1,585,667
Public safety 1,093,440
Cultural and recreation 976,966
Undergrounding districts 68,642
Total restricted 20,141,771
Unrestricted (Deficit) (4,374,704)
Total net position $ 88,087,263

CITY OF HERMOSA BEACH
Statement of Net Position (Continued)
June 30, 2024
See accompanying notes to the basic financial statements. Page 131 of 702 20 Operating Capital Total
Charges for Grants and Grants and Program
Expenses Services Contributions Contributions Revenue
Primary Government:

Governmental activities:

Legislative and legal 1,828,651 $ - $ - $ - $ - $
General government 1,184,159 7,293,441 562,120 - 1,746,279 Public safety 29,781,399 6,175,263 475,666 13,061 6,663,990 Community development 1,512,639 2,655,249 - - 1,512,639 Cultural and recreation 2,485,981 1,064,165 - 1,842,500 2,906,665 Public works 11,018,772 1,584,914 3,059,007 969,128 5,613,049 Interest and fiscal charges 124,125 - - - -
Total governmental activities 55,187,618 $ 11,521,140 $ 4,096,793 $ 2,824,689 $ 18,442,622 $

CITY OF HERMOSA BEACH
Statement of Activities
For the Year Ended June 30, 2024
Functions/Programs
Program Revenues
See accompanying notes to the basic financial statements.

Net (expense)
Revenue and
Changes in
Net Position
Primary Government:

Governmental activities:

Legislative and legal $ (1,828,651)
General government (5,547,162)
Public safety (23,117,409)
Community development (1,142,610)
Cultural and recreation 420,684
Public works (5,405,723)
Interest and fiscal charges (124,125)
Total governmental activities (36,744,996)
General revenues:

Taxes:

Property taxes 24,975,484
Sales taxes 3,772,564
Real property transfer tax 319,702
Franchise fees 927,439
Transient occupancy tax 4,942,254
Business license 1,270,359
Utility users tax 2,041,200
½ cent sales tax for public safety 290,699

Total taxes 38,539,701
Grants and contributions not restricted to specific programs 2,716,844 Miscellaneous 2,876,823
Total general revenues 44,133,368
Change in net position 7,388,372
Net position - beginning of year, as restated (Note 14) 80,698,891 Net position - end of year $ 88,087,263
Functions/Programs

CITY OF HERMOSA BEACH
Statement of Activities (Continued)
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements.

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

GOVERNMENTAL FUND

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

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

Grants Special Revenue Fund - This fund is used to support eligible service agencies.

Tyco Special Revenue Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity.

RTI Undersea Cable Special Revenue Fund - This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system with a landing in Hermosa Beach. The project will provide additional capacity for global voice and data transmission and global access to planned and existing land-based communication networks in the project area.

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

Nonmajor Governmental Funds - Nonmajor Governmental Funds is the aggregate of all the nonmajor governmental funds. 24

RTI Undersea
Grants Tyco Cable
Special Special Special
Revenue Revenue Revenue
General Fund Fund Fund
Cash and investments 14,309,109 $ - $ 2,244,287 $ 1,152,927 $ Accounts receivable 3,072,398 764,730 - -
Property taxes receivable, net 967,029 - - -
Reimbursable grants receivable - 420,433 - -
Leases receivable 1,962,925 3,114,477 3,819,332
Interest receivable on investments 113,024 - 14,114 7,113 Other assets 954,276 - - -
Due form other funds 1,470,631 - - -
Total assets $ 1,185,163 22,849,392 $ 5,372,878 $ 4,979,372 $ Liabilities:

Accounts payable and accrued liabilities 1,266,076 $ 174,667 $ 133,163 $ 87 $ Accrued wages and benefits payable 960,379 121 3,836 2,086 Refundable deposits 528,199 - - -
Unearned revenues 54,435 175,415 - -
Due to other funds - 518,618 - -
Compensated absences,
due within one year - 47 - -
Total liabilities 868,868 2,809,089 136,999 2,173
Deferred Inflows of Resources:

Unavailable revenue 1,027,922 616,962 - -
Leases 1,962,925 - 3,114,477 3,819,332
Total deferred inflows of resources 2,990,847 616,962 3,114,477 3,819,332 Fund Balances:

Nonspendable 954,276 - - -
Restricted 567,910 - - -
Committed 2,255,235 - 2,121,402 1,157,867
Assigned 13,272,035 - - -
Unassigned - (300,667) - -
Total fund balances (deficits) (300,667) 17,049,456 2,121,402 1,157,867 Total liabilities, deferred inflows
of resources and fund balances $ 1,185,163 22,849,392 $ 5,372,878 $ 4,979,372 $ Major Funds
June 30, 2024
ASSETS

LIABILITIES, DEFERRED INFLOWS OF

RESOURCES, AND FUND BALANCES

CITY OF HERMOSA BEACH
Balance Sheet
Governmental Funds
See accompanying notes to the basic financial statements. 25

Major Funds
Capital
Improvements
Capital Nonmajor
Projects Governmental
Fund Funds Total
Cash and investments 16,292,508 $ 14,382,742 $ 48,381,573 $ Accounts receivable 250,000 227,982 4,315,110
Property taxes receivable, net - 39,753 1,006,782
Reimbursable grants receivable - 225,998 646,431
Leases receivable - - 8,896,734
Interest receivable on investments 84,038 71,530 289,819 Other assets 1,300 19,176 974,752
Due form other funds - - 1,470,631
Total assets $ 14,967,181 16,627,846 $ 65,981,832 $
Liabilities:

Accounts payable and accrued liabilities 159,744 $ 676,787 $ 2,410,524 Accrued wages and benefits payable 41,788 84,662 1,092,872 Refundable deposits - - 528,199
Unearned revenues - 211,975 441,825
Due to other funds - 952,013 1,470,631
Compensated absences,
due within one year - 188 235
Total liabilities 1,925,625 201,532 5,944,286
Deferred Inflows of Resources:

Unavailable revenue - 47,993 1,692,877
Leases - - 8,896,734
Total deferred inflows of resources - 47,993 10,589,611 Fund Balances:

Nonspendable - 19,176 973,452
Restricted - 13,725,977 14,293,887
Committed - - 5,534,504
Assigned 16,426,314 - 29,698,349
Unassigned - (751,590) (1,052,257)
Total fund balances (deficits) 12,993,563 16,426,314 49,447,935 Total liabilities, deferred inflows
of resources and fund balances $ 14,967,181 16,627,846 $ 65,981,832 $

LIABILITIES, DEFERRED INFLOWS OF RESOURCES,

AND FUND BALANCES

CITY OF HERMOSA BEACH
Balance Sheet (Continued)
Governmental Funds
June 30, 2024
ASSETS
See accompanying notes to the basic financial statements. 26

Total Fund Balances - Total Governmental Funds $ 49,447,935 Nondepreciable, net of Internal Service Fund of $536,655 31,110,771 $ Depreciable, net of Internal Service Fund of $2,300,283 38,372,487 Total capital assets 69,483,258
Insurance Fund 3,000,000
Equipment Replacement Fund 11,472,779
Total Internal Service Funds 14,472,779
1,693,112
Lease revenue bonds and premium (8,004,743)
Subscription agreements (21,395)
Interest payable (92,067)
(10,507,238) (2,389,033)
Pension related deferred outflows of resources 24,478,101 Pension related deferred inflows of resources (2,878,500) (63,332,807)
OPEB related deferred outflows of resources 3,858,343
OPEB related deferred inflows of resources (4,475,604)
5,847,884
Net position of governmental activities $ 88,087,263

CITY OF HERMOSA BEACH
Reconciliation of the Governmental Funds Balance Sheet
to the Government-Wide Statement of Net Position
June 30, 2024
Amounts reported for governmental activities in the Statement of Net Position were reported differently because:

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

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

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

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

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

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

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

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

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

Compensated absences
See accompanying notes to the basic financial statements. 27 Page 138 of 702
RTI Undersea
Grants Tyco Cable
Special Special Special
Revenue Revenue Revenue
General Fund Fund Fund
REVENUES:

Property taxes 24,517,511 $ - $ - $ - $
Other taxes 13,564,218 - - -
Licenses and permits 870,207 - - -
Fines and forfeitures 1,449,099 - - -
Use of money and property 900,482 - 215,852 101,750
Intergovernmental 203,502 2,089,243 - -
Charges for services 10,104,188 - - -
Miscellaneous 331,553 15,061 127,972 153,969
Interest earned on investments 862,260 - 122,302 59,368 Total revenues 2,104,304 52,803,020 466,126 315,087
EXPENDITURES:

Current:

Legislative and legal 1,536,996 - - -
General government 6,101,066 171,103 - -
Public safety 26,728,045 21,390 - -
Community development 2,279,252 - - -
Culture and recreation 2,172,307 - - -
Public works 7,966,434 80,458 51,444 4,132
Capital outlay 266,675 877,786 260,678 38,511
Debt service:

Principal 27,144 - - -
Interest and fiscal charges 1,737 - - -
Total expenditures 1,150,737 47,079,656 312,122 42,643

REVENUES OVER (UNDER)
EXPENDITURES 953,567 5,723,364 154,004 272,444

OTHER FINANCING
SOURCES (USES):

Transfers in 1,697,340 - - -
Transfers out (9,551,008) - - -
Proceeds from subscriptions 28,825 - - -
Total other financing
sources (uses) - (7,824,843) - -
NET CHANGE IN FUND BALANCE 953,567 (2,101,479) 154,004 272,444 Fund balances, beginning of year,
as restated (Note 14) 19,150,935 (1,254,234) 1,967,398 885,423 Fund balances, end of year 17,049,456 $ (300,667) $ 2,121,402 $ 1,157,867 $ Major Funds

CITY OF HERMOSA BEACH
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 28 Page 139 of 702
Major Funds
Capital
Improvements
Capital Nonmajor
Projects Governmental
Fund Funds Total
REVENUES:

Property taxes - $ 455,818 $ 24,973,329 $
Other taxes - 2,617,350 16,181,568
Licenses and permits - - 870,207
Fines and forfeitures - - 1,449,099
Use of money and property - - 1,218,084
Intergovernmental - 1,355,481 3,648,226
Charges for services - 1,397,391 11,501,579
Miscellaneous 250,000 9,000 887,555
Interest earned on investments 717,128 751,487 2,512,545 Total revenues 6,586,527 967,128 63,242,192
EXPENDITURES:

Current:

Legislative and legal - - 1,536,996
General government - 26,890 6,299,059
Public safety 181,836 89,000 27,020,271
Community development - 49,876 2,329,128
Culture and recreation - 61,069 2,233,376
Public works - 2,366,305 10,468,773
Capital outlay 1,353,545 3,828,378 6,625,573
Debt service:

Principal - 435,000 462,144
Interest and fiscal charges - 283,782 285,519
Total expenditures 7,140,300 1,535,381 57,260,839

REVENUES OVER (UNDER)
EXPENDITURES (553,773) (568,253) 5,981,353

OTHER FINANCING
SOURCES (USES):

Transfers in 4,663,091 1,139,314 7,499,745
Transfers out - (1,697,340) (11,248,348)
Proceeds from subscriptions - - 28,825
Total other financing
sources (uses) (558,026) 4,663,091 (3,719,778)
NET CHANGE IN FUND BALANCE (1,111,799) 4,094,838 2,261,575 Fund balances, beginning of year,
as restated (Note 14) 12,331,476 14,105,362 47,186,360
Fund balances, end of year 16,426,314 $ 12,993,563 $ 49,447,935 $

CITY OF HERMOSA BEACH
Statement of Revenues, Expenditures, and Changes in Fund Balances (Continued) Governmental Funds
For the Year Ended June 30, 2024
See accompanying notes to the basic financial statements. 29 Page 140 of 702
Net Change in Fund Balances - Total Governmental Funds $ 2,261,575 Governmental activities in the Statement of Activities were reported differently because:

Total capital outlay expenditures reported in governmental funds 6,625,573 $ Less: repair and maintenance expenditures (286,187)
Total capital outlay 6,339,386
Total depreciation reported in Government-wide Statement of Activities (2,836,547) Less: depreciation reported in the Internal Service Fund 611,756 Total (2,224,791)
(997,172)
(2,822,877)
1,189,870
65,953
625,049
2,951,379
Change in net position of governmental activities $ 7,388,372 The issuance of long-term debt provides current financial resources to governmental funds. However, the repayment reduces long-term liabilities in the governmental activities Statement of Net Position.

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

CITY OF HERMOSA BEACH
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balance to the Governmental-wide Statement of Activities For the Year Ended June 30, 2024
Governmental Funds report capital outlay as expenditures. However, in the Government-wide Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. The amount of capital assets recorded in the current period is listed below.

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

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

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

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

See accompanying notes to the basic financial statements. 30 Page 141 of 702

PROPRIETARY FUND

FINANCIAL STATEMENTS
Internal Service Funds - To account for the costs associated with the City's insurance and for funding equipment replacement.
31

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32

Governmental
Activities
Internal
Service Funds
ASSETS
Current assets:

Cash and investments $ 19,428,589
Account receivables 67,001
Total current assets 19,495,590
Noncurrent assets:

Nondepreciable capital assets 536,655
Depreciable capital assets, net of accumulated depreciation 2,300,283 Total noncurrent assets 2,836,938
Total assets 22,332,528

LIABILITIES
Current liabilities:

Accounts payable 450,481
Accrued wages and benefits payable 19,716
Workers' compensation claims payable - due within one year 902,838 General liability claims payable - due within one year 770,555 Total current liabilities 2,143,590
Long-term liabilities:

Workers' compensation claims payable - due in more than one year 4,619,676 General liability claims payable - due in more than one year 1,096,483 Total long-term liabilities 5,716,159
Total liabilities 7,859,749

NET POSITION
Net investment in capital assets 2,836,938
Unrestricted 11,635,841
Total net position $ 14,472,779

CITY OF HERMOSA BEACH
Statement of Net Position
Proprietary Funds
June 30, 2024
See accompanying notes to the basic financial statements. 33 Page 144 of 702
Governmental
Activities
Internal
Service Funds
OPERATING REVENUES:

Charges for services 5,767,215 $
Miscellaneous revenue 114,362
Total operating revenues 5,881,577
OPERATING EXPENSES:

Salaries and wages 445,072
Contract services 3,402,706
Supplies 357,690
Claims expense 1,878,978
Depreciation 611,756
Total operating expenses 6,696,202
OPERATING INCOME (814,625)
NON-OPERATING REVENUES (EXPENSES):

Interest expense (1,512)
Gain on disposal of capital assets 18,913
Total non-operating revenues (expenses) 17,401
INCOME BEFORE TRANSFERS (797,224)
Transfers in 3,748,603
Total transfers 3,748,603
Change in net position 2,951,379
Net position, beginning of year 11,521,400
Net position, end of year 14,472,779 $

CITY OF HERMOSA BEACH
Statement of Revenues, Expenses, and Changes in Net Position Proprietary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. 34 Page 145 of 702
Governmental
Activities
Internal
Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES:

Cash received for services from other funds 5,767,215 $ Cash received from insurance recovery 47,387
Cash payments to suppliers for goods and services (3,528,160) Cash payments to employees for services (487,816)
Cash payments for insurance premiums and claims (1,955,973) Net cash provided (used by) operating activities (157,347) CASH FLOWS FROM NON-CAPITAL FINANCING ACTIVITIES:

Transfers in 3,748,603
Net cash provided (used by) non-capital financing activities 3,748,603 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Acquisition of capital assets (551,979)
Net cash provided (used by) capital and related financing activities (551,979) Net increase (decrease) in cash and cash equivalents 3,039,277 Cash and equivalents, beginning of year 16,389,312
Cash and equivalents, end of year 19,428,589 $

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

Operating income (loss) (814,625) $
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:

Depreciation 611,756
Changes in operating assets and liabilities:
(Increase) decrease in accounts receivable (66,975)
Increase (decrease) in accounts payable 232,140
Increase (decrease) in accrued wages and benefits payable 782 Increase (decrease) in workers' compensation claims payable (366,535) Increase (decrease) in general liability claims payable 289,540 Increase (decrease) in compensated absences (43,430)
Total adjustments 657,278
Net cash provided (used) by operating activities $ (157,347)

CITY OF HERMOSA BEACH
Statement of Cash Flows
Proprietary Funds
For the year ended June 30, 2024
See accompanying notes to the basic financial statements. 35

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FIDUCIARY FUND

FINANCIAL STATEMENTS
Custodial Funds- are used to account for assets held by the City in the capacity of agent for individuals. Custodial Fund spending is controlled primarily through legal agreements and applicable State and Federal laws. The Custodial Funds of the City were established to account for transactions related to payments for limited obligation bonds for the Bayview Drive, the Lower Pier Avenue Assessment District, the Beach Drive Assessment District, the Myrtle Avenue Utility Undergrounding Assessment District, and the Loma Drive Utility Undergrounding Assessment District. 37

Custodial
Funds
ASSETS
Cash and investments $ 289,051
Interest receivable on investments 922
Other receivables 2,225
Total assets 292,198

LIABILITIES
Assessment:

Installment account 272,363
Reserve requirement 13,000
Total Liabilities 285,363
NET POSITION $ 6,835

CITY OF HERMOSA BEACH
Statement of Fiduciary Net Position
Fiduciary Funds
June 30, 2024
See accompanying notes to the basic financial statements. 38 Page 149 of 702
Custodial
Funds

ADDITIONS
Interest income 922 $
Other revenues 291,276
Total additions 292,198

DEDUCTIONS
Miscellaneous 285,363
Total liabilities 285,363
Change in net postion 6,835
Net position, beginning of year -
Net position, end of year 6,835 $
For the Year Ended June 30, 2024
All Custodial Funds
Statement of Changes in Fiduciary Net Position

CITY OF HERMOSA BEACH
See accompanying notes to the basic financial statements.

NOTES TO THE BASIC

FINANCIAL STATEMENTS
40

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41

City of Hermosa Beach
Index to the Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Page
Note 1 – Summary of Significant Accounting Policies .............................................................................................. 44 A. Financial Reporting Entity ........................................................................................................................... 44 B. Basis of Accounting and Measurement Focus .......................................................................................... 45 C. Cash and Investments ................................................................................................................................... 47 D. Fair Value Measurement ..............................................................................................................................47 E. Property Taxes Receivable .......................................................................................................................... 47 F. Interfund Transactions .................................................................................................................................. 48 G. Capital Assets ................................................................................................................................................ 48 H. Unearned and Unavailable Revenue ........................................................................................................... 48 I. Claims Payable .............................................................................................................................................. 49 J. Compensated Absences Payable ................................................................................................................. 49 K. Pensions .......................................................................................................................................................... 49 L. Other Postemployment Benefits (“OPEB”) .............................................................................................. 49 M. Net Position .................................................................................................................................................... 50 N. Fund Balances ................................................................................................................................................ 50 O. Spending Policy ............................................................................................................................................. 51 P. Use of Estimates ............................................................................................................................................ 51 Q. Leases Receivable ......................................................................................................................................... 52 R. Leases Payable and Subscription Agreements Payable ........................................................................... 52 S. Accounting Changes ...................................................................................................................................... 52 Note 2 – Cash and Investments ...................................................................................................................................... 53 A. Deposits .......................................................................................................................................................... 53 B. Investments ..................................................................................................................................................... 54 C. Investment in Los Angeles County Investment Pool ............................................................................... 54 D. Fair Value Measurement ..............................................................................................................................55 E. Risk Disclosures ............................................................................................................................................ 55 Note 3 – Receivables .......................................................................................................................................................... 56 A. Government-Wide Financial Statements ................................................................................................... 56 B. Fund Financial Statements ........................................................................................................................... 56 Note 4 – Lease Revenues .................................................................................................................................................. 57 Note 5 – Interfund Transactions .................................................................................................................................... 58 Note 6 – Capital Assets ..................................................................................................................................................... 60 Note 7 – Long-Term Liabilities ...................................................................................................................................... 60 Note 8 – Risk Management ............................................................................................................................................. 62 Note 9 – Defined Benefit Pension Plans ........................................................................................................................ 63 Note 10 – Other Postemployment Benefit Plan .......................................................................................................... 72 42

City of Hermosa Beach
Index to Notes to the Basic Financial Statements (Continued) For the Year Ended June 30, 2024
Page
Note 11 – Classification of Fund Balances ........................................................................................................... 76 Note 12 – Non-City Obligations ....................................................................................................................................... 77 Note 13 – Commitments and Contingencies ................................................................................................................. 77 A. Commitments ................................................................................................................................................. 77 B. Contingencies ................................................................................................................................................. 78 C. Grants .............................................................................................................................................................. 78 Note 14 – Prior Period Adjustments ............................................................................................................................... 78 Note 15 – Subsequent Events ............................................................................................................................................ 78 43

City of Hermosa Beach
Notes to the Basic Financial Statements
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies
The basic financial statements of the City of Hermosa Beach, California, (the “City”) have been prepared in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”) as applied to governmental agencies. The Governmental Accounting Standards Board (“GASB”) is the accepted standard setting body for establishing governmental accounting and financial reporting principles. The following is a summary of the City’s significant policies:

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

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

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

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

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

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

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

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

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

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

The above component units do not issue separate financial statements. 44

City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for by providing a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. City resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.

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

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

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

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

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

Under the modified accrual basis of accounting, revenues are recognized in the accounting period in which they become both measurable and available to finance expenditures of the current period. 45

City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Governmental Fund Financial Statements (Continued)
Revenues are recorded when received in cash, except those revenues subject to accrual (generally 60 days after year-end) which are recognized when due. The primary revenue sources, which have been treated as susceptible to accrual by the City, are property taxes, intergovernmental revenues and other taxes. Sales tax is received on a monthly basis. Business license fees are recorded as received, except at year-end when they are accrued pursuant to the modified accrual basis of accounting. The City recognizes business license revenue collected within 60 days as revenue at June 30. Expenditures are recorded in the accounting period in which the related fund liability is incurred.

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

The City reports the following major governmental funds:

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

Grants Special Revenue Fund – This fund is used to support eligible service agencies.

Tyco Special Revenue Fund – This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system originating in Japan with a landing in Hermosa Beach. The project will provide additional capacity.

RTI Undersea Cable Special Revenue Fund – This fund is used to account for funds received from an easement granted for construction of a transpacific, submarine fiber optic cable system with a landing in Hermosa Beach.

The project will provide additional capacity for global voice and data transmission and global access to planned and existing land-based communication networks in the project area.

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

Proprietary Fund Financial Statements
Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities (whether current or noncurrent) are included on the statement of net position. The statement of revenues, expenses and changes in net position presents increases (revenues) and decreases (expenses) in total net position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned, while expenses are recognized in the period in which the liability is incurred.

Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the proprietary funds are charges to customers for sales and services. Operating expenses for the proprietary funds include the costs of sales and services, administrative expenses and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. 46 Page 157 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) B. Basis of Accounting and Measurement Focus (Continued) Proprietary Fund Financial Statements (Continued)
Internal service funds are the only funds presented in the proprietary fund financial statements. However, internal service balances and activities have been combined with the governmental activities in the governmentwide financial statements. The internal service funds are used to account for equipment replacement and insurance provided to other City departments on a cost-reimbursement basis.

Fiduciary Fund Financial Statements
The City’s fiduciary funds represent custodial funds, which are custodial in nature (assets equal liabilities) and use the economic resources measurement focus. The fiduciary funds are accounted for using the accrual basis of accounting. The City maintains seven fiduciary funds which represent assets resulting from assessments to the property owners in four utility undergrounding districts, two reserve funds for utility undergrounding districts and a downtown improvement district (Lower Pier Avenue). The assets are used to repay bonds secured by the private property in the district.

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

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

The three levels of the fair value measurement hierarchy are described below:
 Level 1 – Inputs are unadjusted, quoted prices for identical assets or liabilities in active markets at the measurement date.
 Level 2 – Inputs, other than quoted prices included in Level 1, that are observable for the assets or liabilities through corroboration with market data at the measurement date.  Level 3 – Unobservable inputs that reflect management’s best estimate of what market participants would use in pricing the assets or liabilities at the measurement date.

E. Property Taxes Receivable
Property taxes attach as an enforceable lien on property as of January 1 each year. The property tax year runs from July 1 to June 30. Property is taxed as of January 1 for payment in the following fiscal year. Taxes are payable in two installments: December 10 and April 10 of each year. The County of Los Angeles, California (the “County”) bills and collects the property taxes and remits them to the City according to a payment schedule established by the County. City property tax revenues are recognized, net of estimated refunds and uncollectible amounts, in the period for which the taxes are levied. The City recognizes available taxes, or those collected within 60 days, as revenue at June 30.
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City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) E. Property Taxes Receivable (Continued)
The County is permitted by State law to levy taxes at 1% of full market value (at time of purchase) and can increase the assessed valuation no more than 2% per year. The City receives a share of this basic levy, or .203 cents of each $1.00, proportionate to what it received during the years 1976 to 1978.

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

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

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

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

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

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

The lives used for depreciation purposes are as follows:

Buildings 50 years
Improvements other than buildings 20 years
Machinery and equipment 3-20 years
Infrastructure 15-50 years
H. Unearned and Unavailable Revenue
In the government-wide and fund financial statements, unearned revenue is reported for transactions for which revenue has not yet been earned. Typical transactions recorded as unearned revenues in the government-wide financial statements are cell phone site license lease payments received in advance, prepaid charges for services, facility rentals paid in advance, quarterly encroachment fees, and advance registration for recreation classes.

In the governmental fund financial statements, unavailable revenue is reported when transactions have not yet met the revenue recognition criteria based on the modified accrual basis of accounting. The City reports an unavailable revenue when an asset is reported in governmental fund financial statements but the revenue is not available.
48 Page 159 of 702
City of Hermosa Beach
Notes to the Basic Financial Statements (Continued)
For the Year Ended June 30, 2024
Note 1 – Summary of Significant Accounting Policies (Continued) I. Claims Payable
The City records a liability to reflect an actuarial estimate of ultimate uninsured losses for both general liability claims (including property damage claims) and workers’ compensation claims. The estimated liability for workers’ compensation claims and general liability claims includes “incurred but not reported” (“IBNR”) claims. There is no fixed payment schedule to pay these liabilities.

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

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

The following timeframes are used for pension reporting:

CalPERS
Valuation Date June 30, 2020
Measurement Date June 30, 2021
Measurement Period July 1, 2020 to June 30, 2021
Gains and losses related to changes in total pension liability and fiduciary net position are recognized in pension expense systematically over time. The first amortized amounts are recognized in pension expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to pensions and are to be recognized in future pension expense. The amortization period differs depending on the source of the gain or loss. The difference between projected and actual earnings is amortized straight-line over 5 years.

All other amounts are amortized straight-line over the average expected remaining service lives of all members that are provided with benefits (active, inactive, and retired) as of the beginning of the measurement period.

L. Other Postemployment Benefits (“OPEB”)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the plans and additions to/deductions from OPEB Plan's fiduciary net position have been determined on the same basis as they are reported by the plan (Note 10). For this purpose, the OPEB Plan recognizes benefit payments when due and payable in accordance with the benefit terms. Investments are reported at fair value. 49