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
John Albi, Management Analyst
SUBJECT:Title
Consideration of a Resolution Declaring Intention to Provide for the Annual Levy and Collection of Assessments for the Downtown Business Improvement District and Setting a Public Hearing for July 21, 2026 (No Budget Impact) (Finance Director Bretthauer).
A) ADOPT RESOLUTION NO. 26-0058
B) SCHEDULE PUBLIC HEARING DATE TO CONSIDER ASSESSMENTS ON JULY 21, 2026
Body
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RECOMMENDATION:
The Downtown Business Improvement District Advisory Board and City Staff recommend that the City Council adopt Resolution No. 26-0058, announcing the City’s intention to set assessments for the Downtown Manhattan Beach Business Improvement District (BID) for fiscal year (FY) 2026-2027 and setting the public hearing for July 21, 2026.
FISCAL IMPLICATIONS:
There are no budgetary or other financial implications associated with the adoption of the Resolution of Intention.
BACKGROUND:
In 1998, the City Council, at the request of downtown business owners, dissolved an existing parking district and created a new Business Improvement District (BID) for the downtown area. The new district was created under the Parking and Business Improvement Area Law of 1989, which provides flexibility in the use of funds. The previously existing parking district restricted the use of the funds to the acquisition and construction of parking facilities.
The Parking and Business Improvement Area Law of 1989 is contained in sections 36500-36551 of the Streets and Highways Code (SHC) and requires that the district and associated assessments be renewed annually. Therefore, the City Council will hold a public hearing at its meeting on July 21, 2026, to consider the request from the Downtown Business Improvement District Advisory Board to renew the district for FY 2026-2027 and levy the associated assessment (80% surcharge on business license tax to a maximum of $600).
DISCUSSION:
As part of the annual process required for BIDs, the Downtown Manhattan Beach Business Improvement District Advisory Board met on May 11, 2026, to review the FY 2025-2026 year-end progress report and approve the attached FY 2026-2027 BID Activity Plan and Budget.
On June 8, 2026, the BID Advisory Board met again to finalize the roster of Board member nominees and attend a required Brown Act Training presented by the City’s contracted legal firm, Richards, Watson & Gershon.
Subsequently, the Chairperson of the BID Advisory Board (Mike Zislis) submitted the attached Letter, recommending that the City Council adopt the Resolution of Intention for the Annual Levy and Collection of assessments for the Downtown 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 $600 for any individual business in the BID), and to set the date for a formal public hearing on July 21, 2026. This first step will be accomplished through the adoption of Resolution No. 26-0058, attached.
2. The second (next) step will be to conduct the public hearing on July 21, 2026, which will include the renewal of the BID, authorization to enter into an agreement with the Downtown Manhattan Beach Business and Professional Association, ratification of the District Advisory Board roster, and authorization to disburse assessments collected through June 30, 2026.
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 July 21, 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. 26-0058
2. BID Advisory Board Chair Letter from BID Advisory Board to City Council
3. Fiscal Year 2026-2027 DMBBID Business Improvement and Activity Plan