CITY COUNCIL ADJOURNED REGULAR MEETING - April 28, 2026
1. CALL TO ORDER— STUDY SESSION
Public Comments:
Mayor Detoy called the Open Session to order at 5:01 p.m.
1.a
Public Comments:
2. PLEDGE OF ALLEGIANCE
Public Comments:
The Pledge of Allegiance was led by City Treasurer David Pederson.
3. ROLL CALL
Public Comments:
City Clerk Martha Alvarez led the roll call.
Present:
Mayor Detoy, Mayor Pro Tem Keegan, Councilmember Jackson, Councilmember Francois, and Councilmember Saemann
4. PUBLIC COMMENT
Attachments
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Public Comments
1. ecomment report 4-28-26 Adjourned Regular Meeting.pdf Michele Hampton
Let's start writing speeding tickets every day to the people speeding down our major streets. Monterey Blvd, Hermosa Beach Ave, Pier Ave., Valley Drive and Ardmore Ave. Police could write a few hundred tickets every month to get some easy money coming in. Even if they place a motorcycle officer on these streets for an hour every morning between 7-8 am or around 4-7pm. Our streets are highways now and giving tickets could help slow down people. tony
Dear City Council,
Does CIP 111 and its 575k budget including the 500k donation cover both the Community Center monument sign design & implementation as well as the design & implementation of any other wayfinding signs throughout the city.
That is, excluding the Community center monument sign, will the city expect residents to pay for the design & implementation of additional wayfinding signs? If so how much more?
I think its clear the primary beneficiaries of these additional wayfinding signs would be the business district so i dont understand if additional funds are required then why city funds would be used for this.
The Chamber of Commerce or business donations should be used to pay for additional signs.
Full stop!
Implementation of these additional signs given the magnitude of the fiscal challenges the city is facing; else no additional signs.
Our fiscal challenges require hard choices.
We have $14.2M in cumulative unfunded general fund operating expenses by 2031.
We have at least $50M in high priority unfunded Capital Projects We have more Pier marine inspections that are likely to reveal the need for more short term emergency maintenance and the city is considering funding additional wayfinding signs? I hope you will clarify who is paying how much and for what.
Thank you for considering
tonyhiggins
tony for special event transparency
Dear City Council
Dear Director Nichols,
Re Memorial Weekend Fiesta Event
Regarding Director Nichols iattached email response, please note that just because the chamber of commerce agreement doesn't prohibit the use of our beaches during the Memorial Day Fiesta that doesn't mean that the Parks Commission reviewed AND explicitly approved use of the beach zone during the Fiesta.
Are you suggesting the Council and Parks Commission explicitly approved the north or south pier zones for the Fiesta? The Parks Commission exists among other things to represent resident concerns and many residents commission members and even some council members have expressed concern about over commercialization of the beach.
I do not recall that the use of the beach by the chamber for the Memorial Weekend Fiesta was even discussed, much less approved by either the Parks Commission or the Council.
The Special Events Policy Guide says the event producer is fully responsible all vendors and event activities operate within the approved event footprint.
Any Reasonable Interprestation of the Special Events Policy Guide requires City Council approval to use the north/south pier special event zones; especially if the beach zones were not included in previous Event Calendar.
However, Beach zones were NOT includes in the most recent publicly viewable Special Events Calendar AND every other on-beach event except the Fiesta lists the north and/or south pier zone as approved.
But the calendar only lists the following zones:
Fiesta Hermosa
Pier Avenue, Hermosa
Avenue, Pier Plaza,
Schumacher Plaza, Lot A
(Teardown)
Impact Level III.
The beach or the North or South Pier locations are NOT mentioned.
So if the use of the beach by the chamber of commerce was not explicitly discussed in the Parks Commission and approved in City Council nor did it include the beach zones in the event footprint application submitted by the chamber nor were the north & south pier locations also were not included on the Special Events Calendar.
So I respectfullysubmit that you may have overstepped your authority, and intentionally or not, obfuscated the beach use by the chamber related to the Memorial Day Fiesta Finally, I could find no Fiesta beach access mentioned in any Parks Commission meeting minutes.
I think the policies and Calendar are fairly clear:
The Parks Department Director alone can NOT approve an on-beach event or event promoter venders at a location zone (eg. north or south pier) that was not explicitly reviewed by the Parks Commission and approved by City Council.
Thank You for considering
tonyhiggins
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Director Nichols' Email.
Dear Mr. Higgins,
The agreement provides that the Chamber may organize, coordinate, produce, and oversee events at locations and on dates mutually agreed upon by the Chamber and the City. The agreement does not prohibit the use of the beach as an event location.
Historically, the Chamber has incorporated the beach into permitted event activities on multiple occasions, including prior Fiesta Hermosa events and Hermosa for the Holidays.
Lisa Nichols Parks Director.
howard Lee
Re: Adjourned Regular Hermosa Beach City Council meeting agenda for 4/28/2026 Honorable Councilmembers, City Manager and others:
This Council meeting appears to be some kind of pre-pre-actual Budget-Study-Session. The problem is that the agenda is all but useless to the both the public, and to the Councilmembers themselves.
It appears the staff is to be giving the public and councilmembers some pertinent pre-pre-actual Budget-Study-Session meeting (to be in some weeks ahead) information at this meeting and expect all to digest that information and respond on the spot.
For example, Agenda Item-6 indicates that the 'Administrative Services Director' will present the following line items however the agenda has no other information. Zero staff reorts, Why? 1-Purpose and outlook
2-Fiscal Year 2026-27 status
3-Revenue and expenditure trends
4-Forecast and challenges
5-Revenue options and department strategies
6-Budget calendar and process
Why isn’t the information to be presented by the Director orally, by Power-Point, or both presented with the agenda? It seems like the City Manager and others are keeping this information closely held for no good reason. The agenda unfortunately is thusly all but useless without any staff reports.
Sorry, but in my view this agenda represents extremely poor preparation that needs great improvement in the future.
Staff presentations would best be provided with the agenda 72-hours in advance of the meeting, especially when the staff is looking for a response and perhaps suggestions and direction from the public and councilmembers.
Most Respectfully, Howard Lee (Resident)
Mayor Detoy opened the floor to public comments.
The following individual(s) spoke:
Ira Ellnan (In Person)
Tony Higgins (Virtual)
Seeing no further requests to speak, Mayor Detoy closed the floor to public comments.
5. OPENING REMARKS
Public Comments:
(City Manager Steve Napolitano)
City Manager Steve Napolitano provided opening remarks regarding Budget Study Session.
6. OVERVIEW OF 2026-27 BUDGET
Attachments
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Public Comments
1. FY 27 Budget Study Session-Fiscal.pdf
2. SUPPLEMENTAL Emailed Comments for Overview of 2026-27 Budget.pdf Amish Desai
I do not believe implementing this would be good for business. Hotel rates in the area are already higher than in many other places, and hotels already contribute significant revenue to Hermosa Beach that helps fund future city development. For that reason, I am against this proposal.
Laura Pena
Dear Mayor, Council Members, and Staff -
I appreciate the added powerpoint on the Budget Overview. It was incredibly helpful in understanding some of the challenges facing our City. The presentation asks, “How did we get here?” That is important, but the bigger question now is: What do we focus on going forward? We are facing a structural challenge: a roughly $3.2 million deficit, with costs growing faster than recurring revenues. The goal should not be simply to close one budget gap. The goal should be to build a more resilient fiscal model for our City. I respectfully encourage the Council to consider the following recommendations:
1. CREATE A STRUCTURAL BALANCE ACTION PLAN.
The public needs a simple table separating one time money from recurring solutions. Each option should show projected revenue or savings, whether it is one time or ongoing, timeline, risk, and tradeoffs. This would show what solves this year’s problem and what closes the long term gap.
2. EVALUATE REVENUE OPTIONS THROUGH A FISCAL TRADEOFF LENS.
Parking, citations, fees, STR enforcement, sales tax, city asset leases, and land use changes may all have a role. But each choice has consequences. STR enforcement should separate one time collections from reliable annual revenue. Other fee increases may recover costs, but can also discourage small projects, tenant improvements, events, and investment.
3. TREAT ECONOMIC DEVELOPMENT AS A FISCAL STRATEGY.
We cannot cut our way to long term stability. We need to grow recurring revenue in ways that strengthen the local economy: reinvest in commercial areas, fill vacancies, support restaurants and retailers, attract visitor spending, encourage high performing uses, and support appropriate mixed use development.
4. CREATE A RESIDENT & BUSINESS ADVISORY GROUP ON REVENUE AND INVESTMENT.
We have residents, business/property owners, finance professionals, and entrepreneurs who understand markets, investment, and public private partnerships. Why are we not using that expertise more intentionally? A short term Economic Resilience Advisory Group could identify new revenue streams, evaluate P3 opportunities, review barriers to investment, and recommend practical ways to grow revenue without simply raising costs on the same people.
5. IMPROVE PROCESSES BEFORE RAISING MAJOR FEES.
A cost recovery model should not only ask, “How much staff time does this take?” It should also ask, “Should it take this much time in the first place?” If applications can be simplified, handled administratively, or improved through technology, then applicants should not pay for avoidable inefficiency.
6. BE TRANSPARENT ABOUT SERVICE LEVEL AND CAPITAL TRADEOFFS.
If departments are preparing reductions, the public should understand what those reductions mean in real life: slower response times, fewer programs, delayed maintenance, reduced hours, or more reliance on overtime and consultants. Major capital needs like the City Yard, Pier, streets, and deferred maintenance should also be shown clearly.
7. USE METRICS TO BUILD PUBLIC TRUST.
Before asking the public, businesses, or applicants to pay more, the City should report clear performance measures: permit turnaround times, department overtime trends not just “Community Services related to enforcement activities,” parking occupancy, business vacancy rates, event ROI, and customer service outcomes.
The goal should not be to raise more money into the same system. It should be to pair new revenue with reform, protect core services, and encourage private investment to grow our tax base.
Our City is small but that could be our strength and competitive advantage. We can move faster, coordinate better, measure what matters, all by working closely with residents and businesses.
This budget moment is difficult, but it can be a turning point that shapes a stronger future for us all.
As always, I appreciate your consideration.
Laura Pena
Michelle Crispin
On behalf of the Hermosa Beach Chamber of Commerce & Visitors Bureau, we would like to share a tourism perspective as the City considers a potential increase to the Transient Occupancy Tax.
We recognize the City is navigating real budget considerations and appreciate the need to explore additional revenue sources. From a tourism standpoint, it’s important to note that this revenue is directly tied to visitation. TOT performs best when occupancy is strong, and occupancy depends on how competitive and compelling the destination is.
Hermosa Beach operates in a highly competitive coastal market. Visitors are often comparing Hermosa with nearby cities like Manhattan and Redondo Beach. Even small differences in the overall cost of a stay can influence where those bookings land, which is why maintaining competitiveness alongside efforts to attract visitors is so important.
For that reason, how any change is structured matters. When visitor-generated dollars are clearly dedicated to attracting visitors and enhancing the experience, with a direct connection between revenue and tourism efforts, they deliver a stronger return by driving visitation, supporting local businesses, and generating more consistent revenue.
Our shared goal is to keep Hermosa Beach competitive, welcoming, and economically strong while supporting the City’s long-term fiscal health. We appreciate the opportunity to be part of this conversation and look forward to working together on solutions that support both.
Ira Ellman
- Brandon Walker has put together an excellent budget package. It is the first comprehensive analysis residents have seen showing a realistic look at the city’s difficult financial position. - For FY 2027 and beyond, Hermosa has increasing departmental expenses and significantly higher County fire, lifeguard and beach maintenance. In addition, large capital expenditures are needed including City Yard, pier and police facility. - Closing the $3.2mm gap for the coming fiscal year and future years will be difficult. Cutting departmental expenses will be necessary, as short-term revenue generation is not an easy task. Increasing taxes on Hermosa residents is more than likely to fail again.
Recommendations, outside of those mentioned by Brandon in the budget presentation:
- The City Council should form a sub-committee and/or citizens group to investigate potential revenue, both incremental to current sources and creative new sources. - Make sure we have staff in place who have expertise in obtaining grants. - Increase controls on overtime (pre-approval, if that is not in place) - As part of this year’s budget process, department heads should review with the city council and residents how their resources are utilized to service the community and attain goals.
Claudia Berman
The budget deck is FANTASTIC. Thank you for the excellent work: comprehensive & clear.
Christopher Felix
I respectfully oppose increasing the Transient Occupancy Tax without coupling that increase to a dedicated tourism investment strategy.
A stand-alone increase in TOT risks making Hermosa Beach less competitive relative to neighboring South Bay destinations, particularly when visitors have many nearby lodging alternatives. As a small beach market competing with larger and more established neighboring destinations, raising the tax burden without a corresponding demand-generation strategy could displace visitor spending rather than increase overall city revenue.
While I understand the City must address its budget shortfall, I do not believe a simple tax increase is the best long-term solution.
I would, however, support considering a more targeted model tied to a Tourism Improvement District / Tourism Marketing District, where a modest assessment is specifically directed toward destination promotion and tourism demand generation. This approach has been used successfully in other California beach communities, including Huntington Beach, to strengthen off-season demand, increase visitation, support higher average daily rates, and ultimately generate more revenue for both hotels and the City.
That model creates a shared benefit: lodging operators help fund tourism promotion, visitor demand grows, tax revenues increase through volume rather than tax burden alone, and the destination becomes stronger over time.
By contrast, increasing TOT without reinvesting in tourism promotion imposes additional costs without providing a corresponding mechanism to grow demand.
I encourage the Council to consider strategies that expand visitation and revenue through destination development, rather than relying solely on higher taxation.
Thank you for your consideration.
(Administrative Services Director Brandon Walker)
Purpose and outlook
Fiscal Year 2026-27 status
Revenue and expenditure trends
Forecast and challenges
Revenue options and department strategies
Budget calendar and process
City Manager Steve Napolitano introduced Administrative Services Director Brandon Walker.
Administrative Services Director Walker provided the PowerPoint presentation.
7. COUNCIL QUESTIONS
Public Comments:
City Manager Steve Napolitano, Interim City Attorney Jason Baltimore, and Administrative Services Director Brandon Walker responded to City Council questions.
8. PUBLIC COMMENT ON OVERVIEW OF 2026-27 BUDGET
Public Comments:
Mayor Detoy opened the floor to public comments.
The following individual(s) spoke:
John David (In Person)
Jim Holtz (Virtual)
Courtney R. (In Person)
Laura P. (In Person)
Eric Horne (In Person)
Seeing no further requests to speak, Mayor Detoy closed the floor to public comments.
At 6:15 p.m. Mayor Detoy recessed the Budget Study Session.
9. COUNCIL DISCUSSION
Public Comments:
At 9:59 PM, the Budget Study Session reconvened with all City Councilmembers present.
City Clerk Martha Alvarez led the roll call.
Present:
Mayor Detoy, Mayor Pro Tem Keegan, Councilmember Jackson, Councilmember Francois, and Councilmember Saemann Mayor Detoy opened the floor to public comments, seeing no requests to speak, Mayor Detoy closed the floor to public comments Mayor Detoy provided a brief overview of the Budget Study Session from earlier.
Administrative Services Director Walker responded to City Council questions.
Moved by:
Mayor Pro Tem Keegan
Seconded by:
Councilmember Saemann
Motion to authorize a variance to extend the City Manager's budget delivery deadline from May 15, 2026, to May 30, 2026.
Ayes (5)
Councilmember Jackson, Councilmember Francois, Councilmember Saemann, Mayor Detoy, and Mayor Pro Tem Keegan Motion Carried
10. ADJOURNMENT
Public Comments:
At 10:01 p.m., Mayor Detoy adjourned the meeting.