TO:
Honorable Mayor and Members of the City Council
THROUGH:
Talyn Mirzakhanian, City Manager
FROM:
George Gabriel, Assistant to the City Manager
Patricia Matson, Management Analyst
SUBJECT:Title
Consideration of:
a) A Resolution Declaring the Intention to Provide for Annual Levy and Collection of Assessments for the North Manhattan Beach Business Improvement District and Setting February 18, 2025, for a Public Hearing; and
b) Ratification of the 2025-2026 Business Improvement District Advisory Board Members (No Budget Impact) (City Manager Mirzakhanian).
A) ADOPT RESOLUTION NO. 25-0001
B) RATIFY ADVISORY BOARD
Body
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RECOMMENDATION:
Staff recommends that the City Council take the following actions:
1. Adopt Resolution No. 25-0001 announcing the City's intention to renew and set assessments for the North Manhattan Beach Business Improvement District (North MB BID) for 2025 and setting the public hearing for February 18, 2025; and
2. Ratify the newly elected 2025-2026 North MB BID Advisory Board Members in accordance with the BID bylaws.
FISCAL IMPLICATIONS:
There is no budgetary or other financial implication associated with the adoption of the Resolution of Intention. At the current rate, the total assessment levied is estimated at approximately $25,000 per year. In the prior year, assessments collected totaled approximately $25,250.
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 (then totaling around $300,000) 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 are also required to be renewed annually.
On February 18, 2025, 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 taxes to a maximum of $500.
DISCUSSION:
Resolution of Intention
The purpose of Resolution No 25-0001 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 include all of the following: maintaining curb extensions with landscaping and irrigation at certain intersections, installing directories with area maps, enhanced crosswalk treatments, power washing of sidewalks, purchase of branding signs, planting of sidewalk trees, and the installation of string lights on light poles owned by the City. The BID also provides community events during the year such as the winter Holiday Stroll. The BID has reserves of approximately $362,020 at the end of Fiscal Year 2023-2024.
Advisory Board
The 1989 Business Improvement District Act requires that the City Council select 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.
Following a nomination process that began in October 2024, staff sent a notice to the entire BID membership regarding the election process and how to apply. In the notice, staff indicated that:
“The BID Advisory Board is aware of the creation of a non-profit association, which is expected to be formed soon. The new non-profit association will become the entity that meets more often and will function separately from the BID. In preparation, at the October 9, 2024, BID Advisory Meeting, the Advisory Board approved updated bylaws that changed their membership from seven members to up to five. The Advisory Board approved to lower the membership as they will only meet once annually to potentially approve the association’s proposed work plan. Therefore, if you intend to serve on the new non-profit association, you cannot serve concurrently on the BID Advisory Board.”
Following the notice, the BID received six applications and determined that one application was not qualified to serve on the Advisory Board. Thereafter, BID members held a meeting on December 11, 2024, to elect up to five Advisory Board Members for a two-year term from January 1, 2025 through December 31, 2026. Following the election, the following Advisory Board was elected by the North MB BID membership. Titles and business representations are as follows (in alphabetical order):
James (i.e. 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
Following City Council ratification of the Advisory Board, the BID’s Advisory Board will meet to discuss the proposed projects and activity plan, along with the associated budget for the coming year and present the document at the Public Hearing scheduled for February 18, 2025. Additionally, following Council ratification, the BID will meet to discuss the election of officers (Chairperson, Vice Chairperson and Secretary) as this item was continued following discussion at the December 11, 2024, meeting.
Councilmember Charelian currently serves as the BID’s City Council representative with Councilmember Tarnay as the alternate.
CONCLUSION:
If adopted by the City Council, this Resolution of Intention will be circulated to all business owners within the BID as notification of the public hearing on February 18, 2025. 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 proposed Business Improvement District will have an opportunity to present information to the City Council.
Therefore, staff recommends that the City Council take the following actions:
1. Adopt Resolution No. 25-0001 announcing the City's intention to renew and set assessments for the North Manhattan Beach Business Improvement District (North MB BID) for 2025 and setting the public hearing for February 18, 2025; and
2. Ratify the newly elected 2025-2026 North MB BID Advisory Board Members in accordance with the BID bylaws.
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.
ATTACHMENT:
1. Resolution No. 25-0001