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
SUBJECT:Title
Consideration of: (1) Resolutions Regarding Renewal of Downtown Business Improvement District (BID) for Fiscal Year 2026-2027 Including Authorization to Collect Assessments; (2) Appointment of the District Advisory Board; (3) Agreement with the Downtown Manhattan Beach Business and Professional Association Business; and (4) Disbursement of Assessments Collected Through June 30, 2026 (Budgeted) (Finance Director Bretthauer).
(Estimated Time: 15 Mins.)
A) CONDUCT PUBLIC HEARING
B) ADOPT RESOLUTION NOS. 26-0079 AND 26-0080
C) APPOINT BID ADVISORY BOARD
D) AUTHORIZE THE DISBURSEMENT OF ASSESSMENTS COLLECTED THROUGH JUNE 30, 2026
Body
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RECOMMENDATION:
The Downtown Business Improvement District Advisory Board and City staff recommend that the City Council: a) conduct a public hearing; b) adopt Resolution No. 26-0079 authorizing the collection of assessments; c) appoint the nominees for the Fiscal Year (FY) 2026-2027 Downtown Business Improvement District (BID) Advisory Board; d) adopt Resolution No. 26-0080 authorizing the City Manager to enter into an agreement with the Downtown Manhattan Beach Business & Professional Association (DBPA) to provide services to the Business Improvement District; and e) authorize the disbursement of assessments collected through June 30, 2026, for the FY 2025-2026 licensing year (approximately $124,460).
FISCAL IMPLICATIONS:
The Downtown Business Improvement District is funded through an 80% surcharge on the annual business license tax for its members, up to a maximum of $600 per business. The assessment is typically collected during the annual business license tax filing period that begins February 1 and continues through April 30. Late filings and payments received through the end of the fiscal year (June 30) are also included in the disbursement to the DBPA.
The DBPA submitted the attached proposed operating budget for FY 2026-2027.
BACKGROUND:
In 1996, during the downtown strategic planning process, the creation of a new business improvement district area was identified as a desired project. At that time, there was an existing Business Improvement District in place, pursuant to the Parking and Business Improvement Area Law of 1965, that could use its funds only for “the acquisition and construction of additional parking facilities” per Ordinance No. 1173.
There was a desire on the part of the downtown business owners to create a more flexible Business Improvement District so that the funds could be used for additional purposes as defined by the business owners. Therefore, downtown businesses requested that the City assist with the creation of a new Business Improvement District pursuant to the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code Section 36500). In October 1998, the City Council adopted Ordinance No. 1989, which created a Business Improvement District under this law.
DISCUSSION:
The Downtown Business Improvement District and the associated business license tax assessment must be renewed annually. As required by law, the City Council adopted a resolution of intention at its June 16, 2026, meeting, which set the public hearing date of July 21, 2026, to hear testimony regarding the proposed assessment and district renewal. To establish the required noticing of tonight’s public hearing, the resolution of intention was mailed to all business district members and published in The Beach Reporter. If adopted, the resolution will become effective immediately and will set the assessment as an 80% surcharge on the business license tax for business members in the district, up to a maximum of $600 per licensing year.
An additional requirement of the Business Improvement District is the establishment of an Advisory Board. Attached is a list of the nominees for the FY 2026-2027 Advisory Board. State law requires that the City Council appoint the Advisory Board.
A primary role of the Business Improvement District Advisory Board is to review and recommend the operating plan for the District. As part of the annual process, the Advisory Board met on May 11, 2026, to review the FY 2025-2026 year-end progress report and approve the FY 2026-2027 BID Activity Plan and Budget. The attached plan contains all information relative to projected revenues and expenses and outlines the services and programs to be funded by the Business Improvement District. This year, the operating plan identifies the following programs for FY 2026-2027:
A. Downtown Manhattan Beach BID Advisory Board
B. Downtown Manhattan Beach Beautification
C. Parking and Transportation Strategies
D. Downtown Future Plan
E. City Planning & Code Amendments
F. Marketing & Advertising Strategies
G. Promotions & Special Events
H. Professional Management & Communications
I. Manage Revenue Generation and Growth
The DMBBID held a special meeting on June 8, 2026, to discuss nominations. The Advisory Board voted to recommend reducing the number of Board members from 11 to 9, and the Chair submitted a letter to the City Council with the Advisory Board’s recommendation of appointing the following members:
1. Michael Zislis - Chair - Restaurant/Hospitality
2. Ron Koch - Past Chair/Commercial Property
3. Ric Arrigoni - Hair Salon
4. Kevin Barry - Restaurant
5. Linda McLoughlin Figel - Retail
6. Maureen McBride - Retail
7. Greg Newman - Restaurant
8. Chandra Shaw - Personal Services/Spa
9. David Slay - Restaurant
The District partners with the DBPA to provide the services and implement the programs identified in the operating plan. This relationship has been successful with programs such as the Farmers Market, Holiday Open House, advertising campaigns (newspapers, banners and television ads), and sidewalk sales. The DBPA has retained the services of an Executive Director, Kelly Stroman, to provide management support.
The Business Improvement District and associated assessments will remain in place for FY 2026-2027 upon approval of the recommended actions listed below:
1. Conduct the Public Hearing to renew the annual BID;
2. Adopt Resolution No. 26-0079 authorizing the collection of assessments;
3. Appoint the nine members to the FY 2026-2027 Business Improvement District Advisory Board recommended by the Board;
4. Adopt Resolution No. 26-0080 approving an agreement between the City of Manhattan Beach and Downtown Manhattan Beach Business and Professional Association to provide the services and implement the programs identified in the Downtown Manhattan Beach Business Improvement District Business Improvement Activity Plan & Budget (May 2026); and
5. Authorize the disbursement of funds collected for the Business Improvement District through June 30, 2026 (approximately $124,460).
PUBLIC OUTREACH:
This public hearing has been properly noticed in accordance with State law. The resolution of intention was circulated to all downtown businesses and published in The Beach Reporter.
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 because it consists of an administrative activity of government that will not result in direct or indirect physical changes in the environment. 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 approved the agreement as to form.
ATTACHMENTS:
1. Resolution No. 26-0079
2. Resolution No. 26-0080
3. Agreement - DBPA (FY 2026-2027)