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
Reconsideration of Fee Waiver Amount for the North Manhattan Beach Holiday Stroll (Budgeted) (Parks and Recreation Leyman).
(Estimated Time: 15 Min.)
DISCUSS AND PROVIDE DIRECTION
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RECOMMENDATION:
Staff recommends that the City Council reconsider its previous action regarding the fee waiver amount for the North Manhattan Beach Holiday Stroll and provide direction regarding responsibility for third-party public safety costs associated with the event.
FISCAL IMPLICATIONS:
The necessary appropriation was made at the August 18, 2026 meeting to enable the City to pay the third-party costs of closing Highland Avenue for the North Manhattan Beach Holiday Stroll. This appropriation was necessary for the City to pay the costs initially, with or without any fee waivers. Generally, if no fee waiver has been approved, these third-party costs would be invoiced to the event organizer to reimburse the City. If the City Council votes to waive third-party costs for the NMBBID, the previously approved $12,500 revenue adjustment would not be processed.
BACKGROUND:
At the August 18, 2026, meeting, the City Council considered the North Manhattan Beach Holiday Stroll and approved the closure of Highland Avenue for the event. As part of its action, the City Council:
1. Waived cost recovery of (already budgeted) City services totaling approximately $60,000 for staffing at the event;
2. Appropriated $9,000 additional dollars to fully fund the anticipated third-party expenses of $12,500 for the event; and
3. Directed that the North Manhattan Beach Business Improvement District (NMBBID) be responsible for reimbursing the City up to $12,500 for the third-party costs.
At the September 15, 2026 City Council meeting, the Councilmember who made the original motion requested that the item be returned to the City Council for reconsideration of item #3 regarding whether the NMBBID should be responsible for reimbursing the City up to $12,500 for the third-party costs.
DISCUSSION:
The item is being returned to allow the City Council to reconsider its previous direction regarding the third-party costs associated with the event.
The third-party costs for the 2026 NMBBID Holiday Stroll are estimated at $12,500. Per the previous Council action, the NMBBID is responsible for reimbursing the City for all third-party costs up to $12,500. If the actual third-party costs exceed $12,500, the City would be required to absorb the additional expenditures per this action.
The NMBBID has requested a waiver of all or some of the third-party costs (i.e. no cost recovery would be reimbursed to the City).
Staff is requesting direction from the City Council on how much of the $12,500 to waive, if any.
PUBLIC OUTREACH:
This topic was originally discussed at the August 18, 2026, City Council meeting, and this item was included on the posted agenda for the October 6, 2026, meeting.
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(b)(5) 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.