TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
Libby Bretthauer, Finance Director
Emy-Rose Hanna, Financial Services Manager
SUBJECT:Title
Consideration of a Resolution Declaring Intention to Provide for Annual Levy and Collection of Assessments for the North Manhattan Beach Business Improvement District and Setting a Public Hearing for August 18, 2026 (No Budget Impact) (Finance Director Bretthauer).
A) ADOPT RESOLUTION NO. 26-0077
B) SCHEDULE PUBLIC HEARING DATE TO CONSIDER ASSESSMENTS ON AUGUST 18, 2026
Body
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RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 26-0077 announcing the City's intention to renew and set assessments for the North Manhattan Beach Business Improvement District (North MB BID) for 2026 and setting the public hearing for August 18, 2026.
FISCAL IMPLICATIONS:
There are no budgetary or other financial implications associated with the adoption of the Resolution of Intention. At the current rate, the total assessment levied is conservatively estimated at approximately $25,000 per year. In FY 2025-2026, assessments collected totaled approximately $29,791.31.
BACKGROUND:
From 1969 to 2004, a North MB BID existed (then called North End BID) for commercial properties located along the northern portion of Highland Avenue and a few businesses located along Rosecrans Avenue just east of Highland. This Business Improvement District, formed under the Parking and Business Improvement District Law of 1965, was fairly limited in scope and was used mainly to address parking acquisition and construction.
In December 2004, City Council approved revamping the North MB BID because it was apparent that opportunities for increased parking were limited. Business owners in this area were interested in using the accumulated funds for promotional purposes and to create an identity for North Manhattan Beach. As a result, this BID was dissolved to form a new BID pursuant to the Parking and Business Improvement Area Law of 1989 (Streets and Highway Code Section 36500), which permits funds to be used for broad purposes such as marketing, promotions, capital improvements, and special events. Districts and the associated assessments were also required to be renewed annually.
On August 18, 2026, the City Council will hold a public hearing to consider the request from the North MB BID’s Advisory Board to renew the district and levy the associated assessments calculated as an 80% surcharge on business license fees to a maximum of $500.
DISCUSSION:
Resolution of Intention
The purpose of Resolution No 26-0077 is to announce the City's intention to renew the BID, establish the method of assessment, outline the activities and services to be funded by the assessment, and to set the date for a formal public hearing. The funding for the BID is established through an 80% surcharge on the business license tax, not-to-exceed $500 for any individual business.
The BID has used its funds in recent years to beautify and upkeep the area. These activities have included: maintaining curb extensions with landscaping and irrigation at certain intersections; installing directories with area maps; enhancing crosswalk treatments; power washing sidewalks; purchasing branding signs; planting sidewalk trees; and installing string lights on City-owned light poles. The BID also provides community events during the year such as the winter Holiday Stroll. The estimated balance of BID funds held in reserve after allocating interest earned and closing Fiscal Year 2025-2026 is approximately $329,682.
Advisory Board
The 1989 Business Improvement District Act requires that the City Council appoint a BID Advisory Board. Advisory Board duties include recommendations to the City Council on expenditure of revenues derived from the assessments, as well as the method and basis of levying the assessments.
The North MB BID currently has bylaws that state an election process will occur every two years to nominate members of the Advisory Board. The last election occurred in late 2024, and the following Board members were appointed by the City Council on February 18, 2025, to serve a two-year term through December 31, 2026:
James (Jim) Murphy - The Sea View Inn at the Beach
Lawrence Getzoff - Beach Pizza
Mike Simms - Nick and Sons
Peter Kim - Sloopy’s Beach Cafe
Steven Delk - OB’s Grill & Bar
As part of the annual process required for BIDs, the North Manhattan Beach Business Improvement District Advisory Board met on July 7, 2026, to review the FY 2025-2026 year-end progress report and approve the attached FY 2026-2027 BID Activity Plan and Budget. The Board voted affirmatively to recommend that the City Council adopt the Resolution of Intention for the Annual Levy and Collection of assessments for the North MB Business Improvement District.
To renew the district and levy the annual assessments, the Parking and Business Improvement Area Law of 1989 requires a two-step process as follows:
1. The first (current) step is to announce the City’s intention to renew the BID assessment, outline the activities and services to be funded by the assessment (not-to-exceed $500 for any individual business in the BID), and to set the date for a formal public hearing on August 18, 2026. This first step will be accomplished through the adoption of Resolution No. 26-0077, attached.
2. The second (next) step will be to conduct the public hearing on August 18, 2026, which will include the renewal of the BID, authorization to enter into an agreement with the North Manhattan Beach Business and Professional Association, appointment of the District Advisory Board, and authorization to disburse assessments collected through June 30, 2026.
Councilmember Howorth currently serves as the BID’s City Council representative with Councilmember Lesser as the alternate.
PUBLIC OUTREACH:
If adopted by the City Council, the Resolution of Intention will be circulated to all business owners within the BID as notification of the public hearing on August 18, 2026. In addition, a notice advertising the public hearing will be placed in The Beach Reporter. At the public hearing, all proponents and opponents of the annual assessment will have an opportunity to present information to the City Council.
ENVIRONMENTAL REVIEW:
The City has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a “Project” as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary.
LEGAL REVIEW:
The City Attorney has reviewed this report and determined that no additional legal analysis is necessary.
ATTACHMENTS:
1. Resolution No. 26-0077
2. Annual Budget and Activity Plan for FY 2026-2027