TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Mark Leyman, Parks and Recreation Director
Linda Robb, Senior Management Analyst
SUBJECT:Title
Consideration of a Request by the North Manhattan Beach Business Improvement District (NMBBID) for a Road Closure of Highland Avenue Associated with the Annual Holiday Stroll to be Held Sunday, December 7, 2025; and Approval and Appropriation of Additional Funding from the General Fund to be Included in the Existing Fee Waiver (Unbudgeted) (Parks and Recreation Director Leyman).
(Estimated Time: 30 Mins.)
A) DISCUSS AND PROVIDE DIRECTION
B) IF APPROVED, APPROPRIATE FUNDS
Body
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RECOMMENDATION:
Staff recommends that the City Council discuss and provide direction regarding the North Manhattan Beach Business Improvement District (NMBBID) Holiday Stroll Event request for the closure of Highland Avenue and consider approving and appropriating additional funding associated with the street closure.
FISCAL IMPLICATIONS:
This event currently has a 100% fee waiver for City services up to $9,919, approved by the City Council on March 4, 2025. The road closure will add an estimated additional $20,027 in City services and $10,216 in third-party costs. If approved, an appropriation of $30,243 from the General Fund will be necessary.
Typically, organizers are responsible for reimbursing the City for third-party costs. If the City Council does not approve a full fee waiver as requested by the organizer, the NMBBID would be required to reimburse the City for the $10,216 in third-party costs. If this option is selected, a corresponding budget adjustment to General Fund revenues would be made to reflect the reimbursement of $10,216.
BACKGROUND:
On July 17, 2018, City Council approved the updated Special Events policy. The policy states that any significant changes to annual events may require Parks and Recreation Commission or City Council approval. Events or changes denied by the Parks and Recreation Commission may be appealed to the City Council. The Special Events policy also states that fee waivers granted by the City Council apply to City services and third-party costs are the responsibility of the event organizer.
On March 4, 2025, City Council updated the Special Event policy to extend the lead time required for level II events from 90 to 120 days and clarified that the City Council can bring any event up for review that has been approved or denied by the Parks and Recreation Commission, within 30 days of the Commission decision.
The NMBBID Holiday Stroll is held annually on Highland Avenue between 32nd Street and 40th Street. The event features over 75 local businesses, a holiday window display, food, local artist gift fair, shopping, fun and entertainment. For the past few years, a road closure has been allowed, where 35th Street is closed off between Highland Avenue and Crest Drive for a kids’ zone. Highland Avenue has historically never been closed off for this event.
The closure of Highland Avenue was requested by the NMBBID for the 2024 event (scheduled to be held on a Thursday evening). The Special Events Committee did not recommend the closure at that time due to the high volume of traffic during rush hour on a Thursday. It was suggested that the committee would support the closure if the event could be moved to a Sunday.
The Parks and Recreation Commission denied the road closure at an October 17, 2024 Special Meeting. Due to the short timeframe, the NMBBID elected not to appeal the decision to the City Council.
DISCUSSION:
For the 2025 Holiday Stroll on December 7, 2025, the NMBBID has requested to close Highland Avenue between Rosecrans and 33rd Street and has moved the event to Sunday to benefit from decreased traffic flow.
If the road closure is approved, southbound traffic on Highland Avenue would be rerouted at Rosecrans west to Manhattan Avenue, south to 33rd Street and then east back to Highland Avenue. Northbound traffic would be rerouted on the same path.
The event was reviewed by the Special Events Committee on June 4, 2025. The Committee, including Traffic Manager Erik Zandvliet and Police Lieutenant Kelly Benjamin, did not oppose the road closure if the event occurs on a Sunday. The Committee approves of all other elements of the event.
The Parks and Recreation Commission reviewed the request on June 23, 202, to close Highland Avenue and voted to approve the event including the road closure with a 5-0-1-1 vote, with one commissioner absent and one abstention.
The road closure will add to the expense of the event. If the road closure is approved by the City Council, it is requested by the NMBBID that the additional City costs be added to the previously-approved $9,919 fee waiver for a total waiver of $29,946. The NMBBID also requests that the City Council consider waiving the estimated $10,216 in third-party expenses. As these additional costs have not been budgeted, an appropriation of $30,243 will be necessary if the road closure is approved.
It is worth noting that the Downtown Manhattan Beach Business and Professional Association (DBPA) hosts the Holiday Open House in conjunction with the City’s pier lighting ceremony event every year. Because the event is part of the pier lighting ceremony, the DBPA is not billed for City Services or third-party costs associated with the event.
The City Council currently extends fee waivers for third-party costs to the following events:
o Holiday Fireworks: expenses capped at $10,000
o Hometown Fair: currently capped at $10,609, cap increases 3% annually
MB10K: $6,000
OPTIONS:
The event, without a road closure, currently has a 100% fee waiver for City services up to $9,919. The City Council may select from the following options, as it relates to approving the road closure and appropriating additional funds beyond the $9,919 waiver:
1. Approve road closure and approve additional fee waiver for City Services in the amount of $20,027, with the NMBBID reimbursing the City for third-party costs of $10,216. (Requires appropriation of $30,243 from the General Fund for additional City services and third-party costs and corresponding adjustment to General Fund revenues by $10,216 for the reimbursement of third-party costs).
2. Approve road closure and approve additional fee waiver for City Services and third-party costs in the amount of $30,243. (Requires appropriation of $30,243 from the General Fund for additional City services and third-party costs).
3. Approve the road closure and deny the fee waiver. In this scenario, the NMBBID would be responsible for the additional $30,243.
4. Deny closure of Highland Avenue and deny additional fee waiver.
PUBLIC OUTREACH:
This item was discussed at the June 23, 2025, Parks and Recreation Commission meeting, the agenda for which was posted in accordance with applicable law. Additionally, this item is included on the agenda for the July 15, 2025 City Council meeting, the agenda for which was posted in accordance with applicable law.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed project for compliance with the California Environmental Quality Act (CEQA) and has determined that the project qualifies for a Class 4 categorical exemption pursuant to Section 15304 (Minor Alterations to Land) of the State CEQA Guidelines because the event is a minor temporary use of land having no permanent effect on the environment. Tus, no further environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Event Application Snapshot
2. Event Traffic Map with Road Closure
3. Event Cost Worksheet
4. PowerPoint Presentation