Solved the issue. Altered my model and now the python script works accordingly. Posting for anyone whomay find this script for hot spot analysis helpful.
import arcpy
# Local variables:
Public_Seed_Grounds = "C:\\PATH\\Public_Seed_Grounds.shp"
Raw_Data = "C:\\PATH\\GIS\\Analysis\\VMS\\RawData.shp"
VMS_Events_Hackberry__1_mile_Layer_ = "RawData_Layer"
VMS_Events_Hackberry__1_mile_Shape_ = "C:\\PATH\\GIS\\Analysis\\VMS\\Model\\Test\\VMS_Data_HackberryBay.shp"
VMS_Events_Hackberry__150__Aggregation_ = "C:\\PATH\\GIS\\Analysis\\VMS\\Model\\Test\\Aggregate\\VMS_Data_Hackberry150_Aggregate.shp"
Hackberry_HotSpots__150__ = "C:\\PATH\\GIS\\Analysis\\VMS\\HotSpotAnalysis\\Hackberry_Hotspot150.shp"
Hackberry_ZScore__150__ = "C:\\PATH\\GIS\\Analysis\\VMS\\HotSpotAnalysis\\Hackberry_Hotspot150.lyr"
Seed_Ground_Selection = "Hackberry_Bay_Selection"
Raw_Data_Layer = "RawData_Layer"
# Process: Make Feature Layer (2)
arcpy.MakeFeatureLayer_management(Raw_Data, Raw_Data_Layer, "", "", "FID FID VISIBLE NONE;Shape Shape VISIBLE NONE;ID ID VISIBLE NONE;ASSET_ID ASSET_ID VISIBLE NONE;SENT_DATE_ SENT_DATE_ VISIBLE NONE;LATITUDE LATITUDE VISIBLE NONE;LONGITUDE LONGITUDE VISIBLE NONE;ALTITUDE ALTITUDE VISIBLE NONE;SOG SOG VISIBLE NONE;COG COG VISIBLE NONE;POSITION_C POSITION_C VISIBLE NONE;AREA_IDS AREA_IDS VISIBLE NONE;AREA AREA VISIBLE NONE;ADDITIONAL ADDITIONAL VISIBLE NONE;SHIP_NAME SHIP_NAME VISIBLE NONE;LICENSE LICENSE VISIBLE NONE;REGISTRATI REGISTRATI VISIBLE NONE;INTEGER_ID INTEGER_ID VISIBLE NONE")
# Process: Make Feature Layer
arcpy.MakeFeatureLayer_management(Public_Seed_Grounds, Seed_Ground_Selection, "\"SEEDGRND\" = 'Hackberry Bay'", "", "FID FID VISIBLE NONE;Shape Shape VISIBLE NONE;SEEDGRND SEEDGRND VISIBLE NONE;SHAPE_Leng SHAPE_Leng VISIBLE NONE;SHAPE_Area SHAPE_Area VISIBLE NONE")
# Process: Select Layer By Location
arcpy.SelectLayerByLocation_management(Raw_Data_Layer, "INTERSECT", Seed_Ground_Selection, "1 Miles", "NEW_SELECTION")
# Process: Copy Features
arcpy.CopyFeatures_management(VMS_Events_Hackberry__1_mile_Layer_, VMS_Events_Hackberry__1_mile_Shape_, "", "0", "0", "0")
# Process: Integrate
arcpy.Integrate_management("C:\\PATH\\GIS\\Analysis\\VMS\\Model\\Test\\VMS_Data_HackberryBay.shp #", "150 Feet")
# Process: Collect Events
arcpy.CollectEvents_stats(VMS_Events_Hackberry__1_mile_Shape_, VMS_Events_Hackberry__150__Aggregation_)
# Process: Hot Spot Analysis (Getis-Ord Gi*)
arcpy.HotSpots_stats(VMS_Events_Hackberry__150__Aggregation_, "ICOUNT", Hackberry_HotSpots__150__, "INVERSE_DISTANCE", "EUCLIDEAN_DISTANCE", "NONE", "", "", "")
# Process: ZScore Rendering
arcpy.ZRenderer_stats(Hackberry_HotSpots__150__, "GiZScore", Hackberry_ZScore__150__)