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 Approving an Agreement with the Chamber of Commerce in the Amount of $67,300 for North Manhattan Beach Business Improvement District Management and Executive Coordination Services Until a Non-Profit Corporation is Established (City Manager Moe).
(Estimated Time: 15 Mins.)
A) ADOPT RESOLUTION NO. 24-0080
B) APPROPRIATE FUNDS
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council:
1. Adopt Resolution No. 24-0080 approving a pilot agreement with the Chamber of Commerce in the amount of $67,300 for North Manhattan Beach Business Improvement District (NMB BID) management and executive coordination services until a non-profit corporation is established.
2. Appropriate $67,300 from the NMB BID’s balance within the Parking Fund and adjust corresponding revenues.
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FISCAL IMPLICATIONS:
The North Manhattan Beach Business Improvement District is funded through an 80% surcharge to the business license tax paid by those businesses located within the district, not to exceed $500 annually. At the current rate, the assessments total approximately $25,000 per year and are held separately within the Parking Fund. Should the City Council authorize the expenditures for this pilot agreement, an appropriation of $67,300 is required from the Parking Fund. Budgeted revenues will be adjusted by the same amount, corresponding to a deduction from the NMB BID’s assessment balance.
BACKGROUND:
In January 2004, the City Council dissolved the North End Business Improvement District, which was formed in 1969 under the State’s Parking and Business Improvement District Act of 1965. The BID was limited in scope and was mainly responsible for addressing parking acquisition and construction. Because opportunity for acquiring additional parking in the North End is limited, business district members wanted to use the funds for other types of activities, such as physical improvements, beautification, signage, marketing, and promotion. To accommodate this request, City Council dissolved the 1969 Business Improvement District and created the current Business Improvement District using the broader 1989 BID Act.
At the July 5, 2023, meeting, the City Council adopted Resolution No. 23-0085 approving a pilot agreement with the Chamber of Commerce in the amount of $67,300 for North Manhattan Beach Business Improvement District management and executive coordination services. Additionally, the Council appropriated $67,300 from the NMB BID’s balance within the Parking Fund and adjusted corresponding revenues.
At the April 2, 2024, meeting, City Council approved the following actions:
• Conceptual plan of transitioning ongoing management of the North Manhattan Beach Business Improvement District to a non-profit and executing a future agreement with the non-profit to provide services to the business improvement district; and
• Authorized and appropriated $10,000 from the Parking Fund for developing or utilizing an existing non-profit to manage the North Manhattan Beach Business Improvement District activities and initiatives.
DISCUSSION:
At the February 20, 2024, meeting, City Council conducted a public hearing and approved the 2024 Activity Plan for the NMB BID. Initiatives in the Activity Plan included: Soliciting professional services to manage and administer Advisory Board priorities and responsibilities identified in the Activity Plan including contracting for Executive Coordinator and Social Media Coordinator positions.
This initiative was identified in the Activity Plan as a priority for multiple reasons that include:
1. The NMB BID executed a pilot agreement with the Chamber last year and indicated a willingness to continue with the Chamber’s services at the June North MB BID meeting. In prior years, multiple independent contractors were utilized to provide management, executive coordination and social media services for the District. Following turnover with both the Executive and Social Media Coordinator positions, the NMB BID indicated a need for consistent and additional resources to coordinate efforts.
2. As identified in the Activity Plan, the NMB BID continues to explore the feasibility of becoming a professional non-profit association similar to the Downtown Manhattan Beach Business Professional Association (DBPA). As such, this will be a significant undertaking that needs contract staff available to continue the efforts of establishing a non-profit corporation.
3. The NMB BID’s Holiday Stroll continues to be a successful annual event but needs personnel to staff it and ensure it runs smoothly. Contracting for personnel to execute the event is essential for its success. This personnel will also enhance the event where possible.
In the proposal and attached agreement, the Chamber of Commerce will be responsible for:
• Providing personnel to serve as Executive Coordinator(s) (“EC”);
• Supervising and managing of the EC’s responsibilities;
• Managing BID activities (events, meetings, etc.);
• Providing social-media/website coordination and management services; and
• Executing 2024 Activity Plan Items as directed by the BID Advisory Board.
Following discussion at the June 10, 2024, Advisory Board meeting, the Board recommended moving forward with a new agreement with the Manhattan Beach Chamber of Commerce in an amount not to exceed $67,300 for management and executive coordination services. However, given the effort to establish a non-profit corporation, the North MB BID indicated that the agreement may not last the entirety of the proposed contract end date of July 2025, as efforts are underway to establish the non-profit organization and should be finalized in the coming months.
Therefore, the BID indicated that, at the very least, the agreement should run until January 2025 to ensure a successful Holiday Stroll event. Thereafter, language should be included in the contract that provides flexibility to the NMB BID to terminate the agreement so the newly established North MB non-profit corporation can determine the needs of the business owners going forward. Consistent with BID direction, staff included a five-day notice provision to terminate the agreement if necessary.
CONCLUSION:
Staff recommends that the City Council:
1. Adopt Resolution No. 24-0080 approving a pilot agreement with the Chamber of Commerce in the amount of $67,300 for North Manhattan Beach Business Improvement District management and executive coordination services until a non-profit corporation is established .
2. Appropriate $67,300 from the NMB BID’s balance within the Parking Fund and adjust corresponding revenues.
LEGAL REVIEW:
The City Attorney has approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 24-0080
2. Agreement - Manhattan Beach Chamber of Commerce