TO:
Honorable Mayor and Members of the City Council
THROUGH:
Bruce Moe, City Manager
FROM:
Steve S. Charelian, Finance Director
Libby Bretthauer, Financial Services Manager
SUBJECT:Title
Consideration of a Resolution Declaring an Intention to Provide for Annual Levy and Collection of Assessments for the North Manhattan Beach Business Improvement District and Setting February 15, 2022, for a Public Hearing (Finance Director Charelian).
ADOPT RESOLUTION NO. 22-0001
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Recommended Action
RECOMMENDATION:
Staff recommends that the City Council adopt Resolution No. 22-0001 announcing the City's intention to renew and set assessments for the North Manhattan Beach Business Improvement District (North MB BID) for 2022, and set the public hearing for February 15, 2022.
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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 assessment levied collects approximately $25,000 per year. Prior to the pandemic, assessments collected were approximately $28,000 per year.
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 were also required to be renewed annually.
On February 15, 2022, 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 fees 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 5, 2022, 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 approved the project and activity plan (Attachment), reviewed the budgetary material and 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 an entry monument on Rosecrans Avenue. The BID also provides community events during the year such as the winter Holiday Stroll. The BID currently has reserves of approximately $420,300.
The BID Advisory Board was elected in 2021 and ratified by the City Council at the February 16, 2021, City Council meeting. The full roster of current board members is as follows (in alphabetical order):
• Harry Ashikian, Board Member (Salvatore’s Shoe Repair)
• Janice Davenport, Vice Chairperson (Pancho’s Restaurant Representative)
• Steven Delk, Recording Secretary (OB’s Pub & Grill)
• Roxanne Faire (Aesthetics on Highland)
• Peter Kim, Chairperson (Sloopy’s Restaurant)
• Tom Torii (Manhattan Beach Ebike Rentals)
Mayor Pro Tem Franklin currently serves as the BID’s City Council representative with Councilmember Hadley 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 15, 2022. 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. 22-0001 announcing the City's intention to renew and to set assessments for the North Manhattan Beach Business Improvement District for 2022, and setting the public hearing for February 15, 2022.
ATTACHMENTS:
1. Resolution No. 22-0001
2. 2022 Annual Budget and Activity Plan