Hermosa Beach council defunds Parking Lot D plan, shifts short-term funding to restroom repairs and paves way for city yard study

Hermosa Beach — The Hermosa Beach City Council on May 13 voted to pull funding for the long‑planned renovation of Parking Lot D, approved a set of near‑term facility repairs and structural contract awards, and asked staff to pursue lease negotiations for the adjacent storage lot while convening a study session on delivery options for the city yard project.

The council’s decisions followed a three‑hour study session focused on the city’s capital improvement program (CIP), during which Public Works Director Joe Saclemente outlined a $35.9 million proposed CIP for fiscal year 2025–26 and warned that paving needs, deferred maintenance and limited unrestricted funds will require tradeoffs across projects.

Parking Lot D: grant‑dependent project defunded

Councilmembers voted 3–2 to remove the current Parking Lot D project from the CIP and seek other options for the site rather than immediately pursuing the full design and construction plan staff had advertised. The design would have used a combination of local stormwater and grant funds and included low‑impact development features and an ADA switchback ramp; staff reported the project would have cost roughly $1.8 million in construction and required Coastal Commission permitting.

Public Works staff presented five options — re‑advertise as designed using the grants, scale back scope, fully defund, defund but do a stripped‑down repaving, or consider a structured parking alternative — and warned Measure W and Coastal Conservancy grant timing complicated a rapid restart. Council split on whether to preserve the grants and rebid or to pause and reimagine the site. The motion to defund the current project passed 3–2, with Councilmembers Francois and Keegan voting no.

Storage lot lease and short‑term use

Separately, council directed staff to pursue renegotiation of the current storage lot lease and authorized a council subcommittee (Councilmember Keegan and Mayor Pro Tem DeToy) to work with staff on the lease. The motion includes a near‑term pause on redevelopment so the city can explore whether higher lease revenue or other interim options would be preferable to demolition and a metered lot. The council recorded that the motion carried with two members voting no.

Fourteenth Street restroom: short‑term repairs approved

To address longstanding public complaints about Fourteenth Street restroom conditions, staff proposed spending $75,000 from maintenance funds to perform immediate repairs (windows, fixtures, painting, roofing) and to revisit a larger reconstruction in a future budget cycle. Council voted unanimously to approve the short‑term maintenance funding and to cancel the current larger CIP line for that facility, returning the balance to pavement and other higher‑priority needs.

Lot C structural repairs — contract awarded

Council approved award of a construction contract for high‑priority structural repairs to Parking Lot C. The contract was awarded to the low bidder (Slater Waterproofing) for approximately $1.74 million, an amount below the engineer’s estimate and within the council‑approved budget. Staff said construction is planned to begin after the busy summer season and that phased access plans will be coordinated with adjacent tenants and property managers.

City yard delivery method and budget constraints

The study session also included an extended examination of a proposed replacement for the public works yard. Staff outlined two delivery models — traditional design–bid–build and progressive design‑build (PDB) — and recommended bringing forward an owner’s representative to lead program definition and risk mitigation regardless of the chosen route. Saclemente told council the city currently has only about $2.5 million set aside against an order‑of‑magnitude project estimate of $15–20 million and that remediation and environmental work on the site could substantially affect cost and schedule. Council directed staff to schedule a joint study session with the Public Works Commission to review financing and delivery options for the city yard.

Paving, pier and other priorities

Public Works reported a record year for CIP completions but warned the city still faces roughly $60 million in identified unfunded needs over five years, driven by recurring paving needs, deferred maintenance and emerging urgent repairs — including an estimated $3.7 million in near‑term pier deck repairs. Saclemente urged the council to consider boosting annual paving investment (staff estimate: roughly $3.1M per year to sustain current pavement condition index) and to weigh tradeoffs between foundational infrastructure and new projects.

Community groups and commissioners

Multiple residents and community groups spoke during public comment. Representatives of Hermosa Beach Little League asked the city to create a memorandum of understanding to advance Clark Field renovations; the Civic Facilities Advisory Group urged the city to delay a temporary parking lot on the storage site to preserve the option of consolidating civic facilities on that parcel.

Why it matters

The council’s actions change the near‑term trajectory of the CIP: the decision to defund the current Parking Lot D project preserves flexibility for potential civic consolidation but sacrifices the immediate design‑to‑bid path that could have used existing grant funds. The city also moved to shore up high‑priority facility needs — Lot C structural repairs and short‑term restroom fixes — while directing staff to pursue lease revenue and to prepare an in‑depth study of city yard delivery and financing.

What’s next

Staff will: (1) initiate lease negotiation options for the storage lot and report back via the council subcommittee; (2) award and coordinate Lot C structural repairs for post‑summer construction; (3) execute short‑term maintenance on the Fourteenth Street restroom subject to the $75,000 supplemental funding; and (4) convene a joint study session with the Public Works Commission on city‑yard delivery and financing. Councilmembers and staff said they expect additional follow‑up items at upcoming meetings as staff refines schedules and funding scenarios.