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Council orders targeted review of planning‑related fees after small‑business concerns
Summary
Council continued a study of proposed fee increases, added several planning and entertainment fees to a deferred 'process‑review' list, and directed staff to return with clearer tiering and timelines; business groups urged deferral until process improvements reduce staff time per application.
Hermosa Beach — A continuation of a study hearing on fee changes ended June 23 with the council giving staff mixed direction: several planning‑related fees were added to a 'process review' list for zoning and procedure changes, while the council also directed phased cost‑recovery for many other fees.
Staff presented a cost‑of‑service study recommending full cost recovery for many permits and entitlements, phased over two years. Business owners and local groups testified that high flat fees — for example, large proposed increases to variance and preliminary plan review fees — could disincentivize storefront improvements and early feasibility conversations. The Chamber of Commerce and downtown merchants urged option four (defer increases tied to process until staff streamlines approvals), while some councilmembers sought partial, phased increases for the remainder of fees.
Council amended the staff list to add specific items (notably coastal concept approvals, some variance and mural fees) to the set of fees to be held for process review and directed staff to return with proposed tiers and implementation timing. Council also gave staff direction on phased recovery for the remaining items; multiple substitute motions were debated and recorded in public minutes. Staff will return with refined ordinance language, a one‑year schedule for the process review items and recommended fee tables tied to demonstrated staff time.
