TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
George Gabriel, Assistant to the City Manager
SUBJECT:Title
Consideration of 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 20, 2024, for a Public Hearing (City Manager Moe).
ADOPT RESOLUTION NO. 24-0001
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 24-0001 announcing the City's intention to renew and set assessments for the North Manhattan Beach Business Improvement District (North MB BID) for 2024, and set the public hearing for February 20, 2024.
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FISCAL IMPLICATION:
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 $23,157.
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 20, 2024, 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:
The purpose of the Resolution 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.
On January 10, 2024, the BID’s Advisory Board met to discuss the proposed projects and activity plan, along with the associated budget for the coming year. At that time, the Advisory Board supported the activity plan and budget. The BID Advisory Board approved the activity plan, budget and revised bylaws. The BID now requests that the City Council consider adopting the Resolution of Intention (Attachment).
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 $373,691 at the end of Fiscal Year 2022-2023.
The BID last elected an Advisory Board to two-year terms in 2022 and will have an election later this year for the following two years. The full roster of board members-elect, applicable titles and business representations are as follows (in alphabetical order):
Abbot Lawrence IV - Pancho’s
Harry Ashikian* - Salvatore’s Shoe Repair
Justin Maxwell - North End Caffe
Lorenzo Pitera* (Vice Chairperson) - Baja Sharkeez
Mike Simms (Chairperson) - Nick and Son’s Market
Roxanne Faire* (Secretary) - Aesthetics on Highland
Tim Ryan - El Porto Laundry
Councilmember Franklin currently serves as the BID’s City Council representative with Councilmember Montgomery as the alternate.
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 20, 2024. 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.
CONCLUSION:
The North Manhattan Beach Business Improvement District Advisory Board and City staff recommends that the City Council adopt Resolution No. 24-0001 announcing the City's intention to renew and to set assessments for the North Manhattan Beach Business Improvement District for 2024, and setting the public hearing for February 20, 2023.
ATTACHMENTS:
1. Resolution No. 24-0001
2. Proposed 2024 Annual Budget and Activity Plan