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HomeMy WebLinkAboutCity Council - 2020-50 RESOLUTION NO. 2020-50 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2020-2021 WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at Streets and Highways Code §36500 et seq. (the "Act") authorizes cities to establish parking and business improvement areas for the purpose of imposing benefit assessments on businesses for certain purposes; and The City Council formed a business improvement area, the Huntington Beach Downtown Business Improvement District (the "District"), by the passage of Ordinance 3661 on September 7, 2004. The City is proposing to levy an assessment for fiscal year 2020-2021 pursuant to the process detailed in Streets and Highways Code §36500, et seq.; and The District's Advisory Board has prepared and filed with the City Clerk a report an "Annual Report/Operating Budget 2019-2020 Fiscal Year to Date" and "Proposed Budget for Fiscal Year 2020-2021" (collectively, "Annual Report"); and On August 3, 2020, the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2020-2021 as proposed by the District's Annual Report. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows: SECTION 1. The City Council hereby approves and adopts the Annual Report filed by the Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated herein by this reference, which report includes a proposed budget for Fiscal Year 2020-2021 and a description of the improvements and activities to be provided for Fiscal Year 2020-2021. SECTION 2. The City Council of the City of Huntington Beach hereby authorizes a levy and collection of assessments within the District for fiscal year 2020- 2021 as proposed by the Annual Report. The amount of the assessment shall be as per the assessment schedule and is to apply to all businesses in the Downtown District as shown in Exhibit B. SECTION 3. The assessments collected will be used to fund activities to increase commerce in the Downtown District area. 20-8716/231586 1 Resolution No. 2020-50 SECTION 4. This resolution shall take effect on September 8, , 2020. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 8th day of September , 2020. Ma r RE IE D ND RO D: APPROVED AS TO FORM: City Manager �� City Attorne N/ 20-8716/231586 2 HUNTINGTON BEACH DOWNTOWN a BUSINESS IMPROVEMENT DISTRICT nrK7ru.� n � r am -� ANNUAL REPORT OCTOBER 1, 2019 - SEPTEMBER 30, 2020 Since its beginning in 2004, the Huntington Beach Downtown Business Improvement District has played an integral role in the continued economic growth and vitality of downtown,with a significant focus on beautification, safety, and promotional events. Our fiscal year is October 01 - September 30. It is a fiscal year with two stories: before the COVID-19 Pandemic and after. When the statewide Stay-At-Home Order was issued on March 19, 2020, our members either closed temporarily or drastically altered their business models. Businesses operating out of office spaces required their employees to work virtually from home. Some restaurants served customers through Take-Out and Delivery services. Retail shops focused on promotions through online sales. Some of our businesses were forced to close and wait for the order to be lifted. Then, at the end of May, as restrictions were slowly being lifted, civic unrest that spread throughout the nation also came to Huntington Beach, delaying recovery just a little longer. By early July, COVID-19 cases were on the rise, and the Governor re-issued closures of specific businesses. The HBDBID continues to work closely with downtown merchants and the City to support any temporary changes that will help stimulate our economy and promote services as they are available. We are also working hard behind the scenes to welcome Surf City Nights back to Main Street, following all important health-safety guidelines. We are excited to be back in business as soon as possible, working within restrictions required for social distancing, and the safety and security of our community. The HBDBID Board of Directors continue to work behind the scenes with a focus on maintaining cleanliness and public safety while building a vision for the future. A 1 . r a 2019 - 2020 HBDBID BOARD OF DIRECTORS EXECUTIVE BOARD: President: DAVE SHENKMAN The Kite Connection Vice President: BRETT BARNES Duke's Huntington Beach Secretary: KELLY MILLER Visit Huntington Beach Treasurer: MIKE WILLIAMS The Longboard Restaurant & Pub DIRECTORS: MIKE ALI Zack's Pier Plaza TONY DURAN EV Rideables KATE LEIGH A Street Partners: 5th & PCH DANNY OTHMAN 602 Caf6 STUART GOLDBERG INNOCEAN STAFF: JOHN GILBERT HBDBID Executive Director (through June 2020) SARAH KRUER HBDBID Executive Director (beginning June 2020) JAIME STRONG Events and Social Media Manager JESSICA LABRENZ Administrative Assistant In December 2020, the HBDBID Board of Directors participated in a Strategic Planning Session and identified the following Vision, Mission, Values and Priorities Statements. VISION To be a sustainable catalyst for a thriving and livable downtown, nationally recognized for its diverse local businesses and authentic, unique culture. Known for being welcoming, accessible, clean, safe, fun and environmentally conscious. MISSION To be the advocate for our coastal downtown community creating economic vitality and THE premier entertainment destination. VALUES Communication (Education and Service) Representative (The advocate voice for all in our community) (Transparency, Integrity Honesty, and Respect) Strategic Results (Sustainable, ROI Focused, and Efficient) Passion (Positivity and Unified in Cause) 2 ABOUT The HBDBID is a private non-profit 501 c6 business-based organization, which is an all- inclusive collaborative advocate for the entire growing downtown region. We provide clearly defined value and benefits to our community and stakeholders. • Provide Capital Services to Benefit Downtown conjunction with the City o Security o Cleanliness • Provide Capital Resources to Benefit Downtown in partnership with the City o Signage o Beautification • Annual Calendar of Events which draw Patrons Downtown o Surf City Nights o Surf City Days & He'e Nalu Aloha Pier Festival o Chili at the Beach • Sponsor Civic Events Promoting Downtown o Halloween o Miracle on Main Street STRATEGIC OBJECTIVES (12-18 MONTHS) • Financially Sustainable (Governances & Finance Committee SMART Plan) o Revenue Generation utilizing a Special Events Committee (Special Events Committee SMART Plan) o Recommend BID Zone changes o Review and recommend annual assessment fees o Revenue Generation using Governance / Finance Committee • Improved Communication (Marketing & Communication SMART Plan) o Interactive Website o Accurate and Complete Database o Marketing Materials Schedule o Create a Marketing Task Force to plan and implement Communication plan • Positive Reputation Management (Reputation Management Task Force SMART Plan) o Complete a researched based customer data report o Meet with City & VHB to finalize project and methodology o Conduct focus group with key Downtown Property Owners o Work with VHB to complete Destination Stewardship Tourism Masterplan o Survey Community regarding their attitude of the Downtown Experience STRATEGIC PRIORITIES (3 — 5 YEARS) • Collaborate with the City, Visit HB, & Hotels to develop a larger encompassing district • Develop the premier Entertainment Destination • Reconstruct the Downtown Specific Plan • Prepare a Capital Improvement Plan that will bolster Economic Generation 3 HIGHLIGHTS2019 — 2020 INFORMEDBEAWARE BE RESPONSIBLE 0 RE Typically, Huntington Beach Downtown enjoys a popular night life, with many restaurants open late and providing a wide selection of music and entertainment. With this, comes the added BE SAFE responsibility of ensuring that the late night PLAN experience is safe and welcoming for all visitors. D An important focus in this conversation involves AH EA public education to reduce impaired driving related collisions in Huntington Beach. Before COVID-19, HBDBID was working closely with WAYMAKERS OC and the Safe HB Collective, making way on multiple projects.These projects included, Responsible Beverage Service (RBS) Training for all on-sale establishment staff, a Security Guard training for Huntington Beach Security Guards, a city wide Rideshare u Campaign, and wrapping a Huntington Beach Police Department vehicle with"Choose Your Ride" messaging. WAYMAKERS OC spearheaded the effort in cooperation with partners including the HBDBID, HB Police, Every 15 Minutes, Mothers Against Drunk Driving (MADD) and the Alcoholic Beverage Control (ABC). One of the critical elements of this campaign included public messaging on billboards and bus stops through LA and OC. This billboard example on PCH expected to have 183,391 impressions between March 16 -June 28. BE SAFE. PLAN AHEAD. rar, %Oil Have a des.gnated sober dnver Do-rload a ride-snaring aop or ca;l a taxi yCall a lobe,friend or family member Ask trio bartender or server to help you 4 Moving forward, as establishments start to open up, the HBDBID will continue to partner with WAYMAKERS OC on efforts for continued RBS Training and promoting Rideshare. The HBPD vehicle with "Choose Your Ride" messaging has recently been finished and we are excited for it to be able to be seen by the public. The HBDBID looks forward to working with the Safe HB Collective and the downtown establishments to continually improve the nightlife experience by creating a safe and enjoyable environment. HIGHLIGHTS 2019 - 2020 Noteworthy to the economic health of Huntington Beach, two considerable projects have been underway in downtown. Currently under construction, is an expansion of Pierside Pavilion on Pacific Coast Highway. This exciting four-story building provides an additional 30,000 square feet to accommodate high-end retail, a 2nd floor ocean front upscale restaurant and a rooftop terrace, plus two floors of premier office space. - 401 Main Street is a brand new two-story building • featuring 12,500 square feet of retail and creative office space, expecting to be ready for occupancy in June of 2020. Huntington Beach Downtown continues to welcome exciting new businesses to our popular 1 destination including a diverse selection of dining choices such as the TZone, Surf City Ale SURF My House, Wet Dog Tavern, Teresita's Mexican ALE HOUSE Restaurant, Charlie's Gyros, Ding Tea, Express Donuts and Jay Birds Nashville Hot Chicken. We are also happy to welcome Surf City WET v Skates, a wonderful addition to our active lifestyle community. 1i SUAFCITYSKIITES.COM TAVERN 5 In late October 2019, we welcomed a new ownership of the retail, restaurant, and office space known as 115'h & PCH." Mobilite Management, Inc is continuing to make exterior improvements and is expected to attract new and relevant tenants to the destination. L _r A revamping and redesign of one space on 5,h & PCH proved to be the perfect place to headquarter the offices of Visit Huntington tl - Beach. Exciting for us, A-Street Partners have been retained to continuing property management and �k bringing us a score of community events in the future. BID SIGNATURE EVENTS SURF CITY NIGHTS SURF CITY NIGHTS is an extraordinary example of how the HBDBID has been able to raise funds to use for business development while bringing more people to the downtown destination. tin BEST HP - Surf City Nights This weekly Street Fair and Certified Farmers' Market is popular with both visitors and locals alike, and in 2019 was nominated for a BEST OF HB Chamber of Commerce award, showing how this event is recognized as one of the most-loved events in Huntington Beach. A core center of our community. Surf City Nights also provides booth space for city services, local non-profit groups, and an information booth to guide visitors and promote upcoming downtown events. SURF CITY NIGHTS features over 90 unique vendors, stretching up the first three blocks of Main Street. Visitors enjoy live local entertainment on every corner. Fresh produce, flowers, breads, and sweet treats abound on the street, along with a variety of handcrafted and otherwise distinctive product provides hours of safe, memorable family fun on Main Street. After much research and consideration, the HBDBID rolled out a new layout in March, including repositioning vendors to drive more foot traffic to the side streets of "4 Walnut and Olive, and allow for an even greater f� number of vendor spaces. Responding to community health and safety concerns related to COVID-19, Surf City Nights closed on March 3rd. Both our merchants and community are looking forward to Surf City Nights returning to downtown in July. 6 161 ;+ HALLOWEENFEST For over two decades, Huntington Beach Downtown has been providing a safe, fun, and memorable FREE family experience on Halloween. In coordination with the management team at 5+" & PCH, the HBDBID provides free attractions for hundreds of young trick-or- treaters including inflatables, bounce houses, games, and a reptile petting zoo. _ It is important that HalloweenFest reinforces our brand as a safe and welcoming place to be. The number of families -- attending grows dramatically year after year. Families love visiting with our Police, Fire, Marine Safety and the crafts provided by our Park & Recreation staff. The annual Kids & • - Canine Costume Contest delights visitors of all ages. • Businesses engage with the community by handing out candy and =• coupons, if they like, to entice customers back to their stores. The HBDBID supplemented the candy supply by providing the businesses with over im L; 73,400 pieces of candy! Without question, Huntington Beach downtown is the largest and safest community for trick-or-treaters. r 7 MIRACLE ON MAIN STREET - TREE LIGHTING CEREMONY This Annual Tree Lighting Ceremony has grown into a wonderful tradition for our local families. The holiday decor expenditure is a significant percent of the HBDBID budget, representing the commitment of the downtown businesses to our community. We are place where families and friends gather to make memories and experience a sense of pride in their city. Holiday entertainment was provided by local - dancers and musicians, mostly youth groups. Plus, t the HBDBID invited the City's Park & Recreation Department and the HB Youth Shelter to participate. The HBDBID arranged for Santa Claus to visit the downtown district for five consecutive weeks, giving hundreds of families and friends the chance to visit and take photos with Santa for no charge, bringing more locals to downtown during the off-season. Civic-focused events such as HALLOWEENFEST & MIRACLE ON MAIN ST. TREE LIGHTING represent two of the biggest events presented by HBDBID. These are one-hundred percent about "giving back to the community" in a way that we hope encourages substantial repeat visits to downtown from these visitors. SURF CITY DAYS & THE HE'E NALU ALOHA PIER FESTIVAL SEPTEMBER 2019 SEPT. 14-1S "" Surf City Days 2019 was HUGE! Surf City Days is a special weekend designed for locals, representing the active life-style of Huntington Beach. �•�„Y : Events include a locals-only surfing CMMMCC MST•VOW.wUTOUR"MINT contest, CBVA Volleyball Tournament, HSS/ $URF DENO VAT•OLD SKOOS SR9 MSION DORTUGSS•VIKTACAVW BUS SHOW Surfline Demo Days, HB Cult Old Skool Skate, `0 T AMFOOD•ITTTIRTAWNOff and the popular Kowabunga Van Klan Vintage �-a vaumm•a"04M VW Bus Show. The 2019 weekend was extra , . special as we included two days of .«o=r Cs ® authentic South Pacific music and dancing, plus a Pier Plaza Vendor Fair. CHILI AT THE BEACH JUNE 2020 CANCELLED Due to the Governor's Stay at Home order, the HBDBID canceled the annual Chili at the Beach event, scheduled for June 13, 2020. This event typically attracts over 1500 visitors and raises important funds for both the HBDBID and its partner, the Boys & Girls Clubs of Huntington Valley. We look forward to bringing this popular event back in June 2021. 8 ADDITIONAL HIGH PROFILE DOWNTOWN EVENTS October 2019 was a tremendous month for the businesses in downtown, hosting special events such as the Surf City Sundown, the VISSLA ISA World t Junior Surf Championship and the Great Pacific Air Show. The HBDBID closed a portion of , „ .y '' -. Main Street during the Air t" '4-�- Show to accommodate locals with FREE bike valet. In February 2020, the 24th �! ` A Annual Surf City Marathon attracted over 16,000 participants and their fans to Huntington Beach •'i Downtown. o % Cant vF MARAT,�, VISSLAW JFTY AL 4RA T H ON MARKETING & ADVERTISING With over 6300 subscribers, the HBDBID qq Ne D wn,:w^s sur Carr E.pn• employs Monthly Newsletters to stay --' connected with followers and provide __ Downtown Main Street downtown businesses with an Restaurants and Retail opportunity to include their �° � Shops ore still open! Many advertisements and promotions at no ���� restourow!,rirr rt ,- r ng charge. In addition, we promote our g Takeo • �.r,, ,,,�. downtown destination to over 10,500 are off(:+ _ .. ' FACEBOOK fans. please +: `'"�-"` We actively follow our business �your loc.ol camrn n'tyl members on social media, increasing their reach by sharing on our plafforms. f 1 1 too © You f1W lebnian'_0?0 Newnlrttrr Instagram: HBDowntownusa Instagram: HBSurfcitynights Facebook: HB Surf City Nights �.. Facebook: HB Downtown&Surf City Nights YouTube: HBDBID 9 TOURISMis a key component to business opportunities in Huntington Beach Downtown. While the HBDBID focuses on creating a sense of community pride and possesses a deep appreciation and affection for our local shoppers and diners, we are equally in love with our visitors from out of town. Prior to the COVID-19 pandemic, the Huntington Beach destination enjoyed high hotel occupancies and visitor traffic. However, the Stay-at-Home orders across the world have significantly impacted our visitor expectation for the remainder of the fiscal year. As restrictions lift, we know there is pent-up demand for travel, especially within the STAYCATION / NEARCATION market. Huntington Beach is positioned to be a top choice destination for the drive-in market who will be looking for coastal dining, shopping, and beach activities. MAINTENANCE & BEAUTIFICATION The HBDBID and City of Huntington Beach work together through a MOU currently authorizing more than $160,000 annually for downtown cleaning and maintenance. The HBDBID manages the contract with Malco Services, enabling us to respond quickly to issues effectively and efficiently. This maintenance partnership with the City is credited for providing a cleaner, more beautiful downtown district. POST COVID MARKETING: As restrictions ease, Huntington Beach is the ` perfect choice to enjoy the best of Southern California. The HBDBID will work closely with Visit HB, hotels, and downtown businesses to attract and welcome Staycation locals and visitors. This attention to our cleanliness is critical to a positive experience for our visitors, and sense of pride for our residents. GET THE MOST OUT OF YOUR HUNTINGTON Day Porters maintain cleanliness in most downtown areas, except BEACH VACATION for private buildings that provide their own cleaning service. ,;, ,,,,,,,,—,—,,w ti Porters are responsible for litter, trash removal, spot mopping of ...#31 sidewalks, minor graffiti removal, dusting storefront sills and gum removal. Steam / Power Washing is a critical element in our maintenance program which includes steam cleaning of sidewalks throughout r the downtown district, including alleys and gutters, with service . � - increased during the busy summer months. 10 SAFETY "I% 2 Proudly, Huntington Beach continues to receive praise 2 E.- such as "Best Beach" (OC Register 2019) and "The Best Stops for a Road Trip on Pacific Coast Highway" (AFAR 2019) and among top 10 of the "Happiest US Cities" (WalletHub 2019). With this, a sense of safety and security remains a 2 most critical focus for the downtown destination. By Huntington Beach working closely with law Downtown Business Improvement District Boundaries and Benefit Zones 1&2 enforcement in their efforts to monitor and manage homelessness activity in downtown, we ensure the safety of our customers and give our businesses the opportunity to succeed. Throughout 2019-2020, the HBDBID invested over$100K annually to maintain both a daytime security program and late night Ambassador program. The daytime team acts as "eyes and ears" on the street, to respond quickly and efficiently as a need arises, and providing an overall feeling of safety to all. The evening Ambassador program is designed to assist our businesses with ensuring the safety of our late-night patrons, and mitigate any possible alcohol-related security issues. The HBDBID continues to advocate for appropriate police coverage and meets regularly to discuss ways the HBDBID can assist in improving safety. 2020 - 2021 BID ASSESSMENTS There are currently a total BENEFIT ZONE 1 of 272 businesses operating 170 MEMBERS in the HB Downtown 17 Misc I Business Improvement District. 10% 52 Retail 170 are located in Zone 1 , 45 Service/ 31% and 102 are located in Zone 2. Office Of the 272 businesses, 27% Retail and Restaurant businesses represent 60% of 55 the HBDBID membership Restaurants and contribute over 827o of 32% the dues. BENEFIT ZONE 2 These visitor-serving businesses a" are important to our total 'is` 102 MEMBERS 8% membership, representing the heartbeat of the Downtown 48 Retail experience. Importantly, the 37 Service/ 47% destination is also a desirable Office choice for office locations and 36% services, providing a well- 9 balanced mix of businesses RestaurantsW serving both tourists and locals. 9% 12 2020 - 2021 HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FORMULA OCT 01,2020-SEP 30,2021 Category Benefit Zone 1 Benefit Zone 2 Retail Businesses(includes Nail!Hair/Skin Salons) 1,000 sq.ft.or less $351 $200 1,001 to 2,500 sq.ft. $702 $400 2,501 to 4,999 sq.ft. $1,053 $600 5,000 sq.ft.or more $1,404 $800 Restaurants 1,000 sq.ft.or less $351 $200 1,001 to 2,500 sq.ft. $702 $400 2,501 to 4,999 sq.ft. $1,053 $600 5,000 sq.ft.or more $1,404 $900 Hotels 20 rooms or less $468 $400 21-50 rooms $936 $800 51 rooms or more $1,404 $1,200 Services/Office First Floor $281 $160 Basement,Second Floor or higher 1,000 sq.ft.or less $120 $90 1,001 to 2,500 sq.ft $150 $120 2,501 to 4,999 sq.ft. $300 $150 5,000 sq.ft. or more $700 $350 Cart/Kiosk $100 $80 Banks/ATM $600 $400 Seasonal(open fewer than 9 months/year) $500 $300 • On APRIL 29, 2020, City Council voted to defer payment of required business license fees and BID assessments through September 30, 2020. • There are no changes from the 2018-2019 Assessment Formula • Assessments are paid annually, as a requirement to receive and/or renew a business license for organizations operating within the Business Improvement District. • Assessment excluded for apartments, real estate agents, non-profits, home-based businesses and temporary vendors. • Business and non-profit organizations outside the area may join with the approval of the BID Board by paying the equivalent fee annually. • Non-profit organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the HB Downtown BID directly. 13 PERCENT OF BID MEMBERS BY CATEGORY 45% % OF ASSESSMENT CONTRIBUTION 2019-2020 40% 2019-2020 35% % 25 40% 25% 35% 30% 20% 25% - 15% 20% - 10% 15% 10% - 5% -- 5% - - 0% 0% 00 �✓� `PJ L ,O 5J h�P ti �a 2019-2020 ZONE ASSESSMENTS 05-15-2020 MASTER BID LIST from City of HB CATEGORY ZONE 1 ZONE 2 TOTALS CART/KIOSK 14 $ 1,400.00 14 $ 1,400.001 HOTELS 1 $ 1,404.00 1 $ 400.00 2 $ 1,804.00 BANKS/ATM 2 $ 1,200.00 1 S 400.00 3 $ 1,600.00 17 $ 4,004-00 2 5 800.00 19 $ 4,804.00 1ST FLOOR SVC/OFFICE 11 $ 3,091.00 22 5 3,520.00 33 $ 6,611.00 11 $ 3,091.00 22 $ 3,520.00 33 $ 6,611.00 1000 SQ FT OR LESS RETAIL 21 $ 7,371.00 36 5 7,200.00 57 $ 14,571.00 RESTAURANTS 12 5 4,212.00 3 $ 600.00 15 $ 4,812.00 SVC/OFFICE 30 $ 3,600.00 14 5 1,260.00 44 5 4,860.00 63 $ 15,183.00 53 5 9,060.00 116 $ 24,243.00 2001-2500 SQ FT RETAIL 21 $ 14,742.00 10 $ 4,000.00 31 $ 18,742.00 RESTAURANTS 19 $ 13,338.00 4 $ 1,600.00 23 $ 14,938.00 SVC/OFFICE 1 $ 120.00 1 5 120.00 40 $ 28,080.00 15 $ 5,720.00 55 5 33,800.00 2501-4999 SQ FT RETAIL 5 $ 5,265.00 5 $ 5,265.00 RESTAURANTS 18 $ 18,954.00 1 $ 600.00 19 $ 19,554.00 SVC/OFFICE 3 5 900.00 3 $ 900.00 26 $ 25,119.00 1 $ 600.00 27 $ 25,719.00 5000 SQ FT OR MORE RETAIL 5 5 7,020.00 2 $ 1,600-00 7 $ 8,620.00 RESTAURANTS 6 $ 8,424.00 1 $ 900.00 7 $ 9,324.00 SVC/OFFICE 2 $ 1,400.00 2 $ 1,400.00 13 $ 16,844,00 3 $ 2,500-00 16 $ 19,344.00 SEASONAL 6 $ 1,800.00 6 5 1,800.00 0 $ - 6 $ 1,800-00 6 $ 1,800.00 TOTAL 170 $ 92,321.00 102 $ 24,000.00 272 $ 116,321.00 SUB-CATAG O R I ES MISCELLANEOUS 17 $ 4,004.00 2 $ 800.00 19 $ 4,804.00 RETAIL 52 $ 34,398,00 48 $ 12,800.00 100 $ 47,198.00 RESTAURANTS 55 $ 44,928.00 9 $ 3,700.00 64 $ 48,628.00 SVC/OFFICE 46 $ 8,991.00 37 $ 4,900.00 83 $ 13,891.00 SEASONAL O $ 6 $ 1,800.00 6 $ 1,800.00 TOTAL 170 $ 92,321.00 102 $ 24,000.00 272 S 116,321.00 14 Huntington Beach Downtown Business Improvement District STATEMENT OF FINANCIAL POSITION As of July 31, 2020 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank-Main Acct 16,568.80 1030 First Bank-MM 130,712.12 1040 First Bank-Malco 15,143.16 Total Bank Accounts $162,424.08 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 0.00 Total Other Current Assets $500.00 Total Current Assets $162,924.08 Fixed Assets 1640 Machinery&Equipment 11,651.68 1660 Office Equipment 538.74 1670 Computers 1,306.31 1700 Accumulated Depreciation -11,236.13 -------- --- ------ - -- -- _ --- _ - . Total Fixed Assets $2,260.60 - TOTAL ASSETS $165,184.68 LIABILITIES AND EQUITY Liabilities Current Liabilities Other Current Liabilities 2080 Payroll Clearing -185.08 2100 Payroll Tax Payable -853.29 Total Other Current Liabilities $-1,038.37 - Total Current Liabilities $-1,038.37 Total Liabilities $-1,038.37 Equity 3100 Unrestricted Net Assets 250,255.82 Retained Earnings 0.00 Net Revenue -84,032.77 Total Equity - - $166,223.05 TOTAL LIABILITIES AND EQUITY $165,184.68 Cash Basis Monday,August 3,2020 10:55 AM GMT-07:00 1/1 Huntington Beach Downtown Business Improvement District Budget vs.Actuals: Approved Budget 19120 -FY20 P&L October 2019 -June 2020 Total Actual YTD Annual Budget over Budget %of Budget REVENUE 4050 BID Assessments 66,580.00 120,000.00 (53,420.00) 55.48% 4100 Chili at the Beach 30,000.00 (30,000.00) 0.00% 4300 Surf City Nights 142,492.00 315,000.00 (172,508.00) 45.24% 4400 Surf City Days 12,515.00 15,000.00 (2,485.00) 83.43% 4500 Miracle on Main 2,006.00 2,006.00 i 4600 Destination Downtown 175.00 175.00 4700 Airshow 1,360.00 1,360.00 4800 City of HB Maintenance 146,389.00 162,000.00 (15,611.00) 90.36% Unapplied Cash Payment Revenue - - I Total Revenue 371,517.00 642,000.00 (270,483.00) 57.87% Cost of Goods Sold j 5100 Rental&Setup 12,136.86 30,000.00 (17,863.14) 40.46% 5150 Parking 4,334.00 9,000.00 (4,666.00) 48.16% 5200 Street Cleaning 1,207.14 3,000.00 (1,792.86) 40.24% 5250 Street Closure 7,872.14 5,000.00 2,872.14 157.44% 5300 Event Expenses 4,976.29 40,000.00 (35,023.71) 12.44% 5330 Entertainment 6,927.94 - 6,927.94 5380 Printing&Production 1,393.33 - 1,393.33 Total 5300 Event Expenses 13,297.56 40,000.00 (26,702.44) 33.24% 5500 Miscellaneous 5,535.00 18,000.00 (12,465.00) 30.75% 5600 Holiday Beautification 17,948.46 25,000.00 (7,051.54) 71.79% 5800 Malco Maintenance 132,591.00 150,000.00 (17,409.00) 88.39% Total Cost of Goods Sold 194,922.16 280,000.00 (85,077.84) 69.62% Gross Profit 176,594.84 362,000.00 (185,405.16) 48.78% I Source: McGinty,Knudtson,&Associates, LLP Certified Public Accountants July 06,2020 EXPENDITURES CONTINUED ON NEXT PAGE 16 I Huntington Beach Downtown Business Improvement District FF Budget vs. Actuals: Approved 19/20 FY20 P&L October 2019—June 2020 Continued from previous page EXPENDITURES 7010 Advertising& Marketing 549.32 17,000.00 (16,450.68) 3.23% 7050 Bank Charges&Fees 366.34 600.00 (233.66) 61.06% 7070 Consultants 56,100.00 102,000.00 (45,900.00) 55.00% 7100 Dues&subscriptions 30.00 3,000.00 (2,970.00) 1.00% 7150Insurance 2,336.47 7,400.00 (5,063.53) 31.57% 7155 Workers Comp Insurance 276.46 1,000.00 (723.54) 27.65% Total 7150 Insurance 2,612.93 8,400.00 (5,787.07) 31.11% 7170 Legal&Accounting Services 4,155.00 7,000.00 (2,845.00) 59.36% 7190 Meeting &Training 6,317.87 2,000.00 4,317.87 315.89% 7191 Election 8.53 - 8.53 7200 Miscellaneous Expense 541.62 - 541.62 7210 Office Supplies 3,716.42 3,000.00 716.42 123.88% 7240 Payroll Expenses - 7241 Wages-Event Coordinator 37,514.15 62,000.00 (24,485.85) 60.51% 7242 Wages-Administrative Assistant 11,268.00 20,000.00 (8,732.00) 56.34% 7250 Payroll Taxes 4,380.78 7,000.00 (2,619.22) 62.58% 7255 Payroll Processing Fees 1,371.53 1,500.00 (128.47) 91.44% Total 7240 Payroll Expenses 54,534.46 90,600.00 (35,966.64) 60.26% 7280 Postage 34.00 - 34.00 7290 Rent&Lease 11,200.00 14,000.00 (2,800.00) 80.00% 7300 Repairs& Maintenance 16,268.00 500.00 15,768.00 3253.60% 7310 Security 61,903.91 128,000.00 (66,096.09) 48.36% 7315 Ambassador Program 15,000.00 48,000.00 (33,000.00) 31.25% Total 7310 Security 76,903.91 176,000.00 (99,096.09) 43.70% 7320 Taxes&Licenses 8,315.20 2,000.00 6,315.20 415.76% 7330 Telephone 1,659.71 2,000.00 (340.29) 82.99% QuickBooks Payments Fees 910.28 - 910.28 Unapplied Cash Bill Payment Expenditure - - - Total Expenditures 244,223.59 428,000.00 (183,776.41) 57.067/6 Net Operating Revenue (67,628.75) (66,000.00) (1,628.76) 102.47% Other Revenue 8000 Interest Earned 219.45 219.45 Other Miscellaneous Revenue 110.00 110.00 Total Other Revenue 329.46 - 329.45 Net Other Revenue 329.46 - 329.45 Net Revenue (67,299.30) (66,000.00) (1,299.30) 101.97% 17 A oo ;dn ^ n" Fff Fn01 AAA < o< � � � 3 ^ � vM on; gym'; 3d�3 n� � S2 gd S N z z zzzzo m» g x 3 3 zti a m N x N p �, Epppp p�ow nNNp pp y�y..�� ; p ppp� SW V O 0 0 0 0 0 0 N 0 0 0 N O D S O W O O S O 8 0 0 0 A O 0 0 O A 8 s 888888 8888 88888 88 98 88998 8Ny 8 $s s8 aq vBNi 8O vNi Nypppp N A Oe y V $ $O N N 0 0 0 0 N 0 0 0 N O O S 8 w 8 O $ 888 888888 8888888888888 88888 8 8 8 88 88� 888o888 8888888888888 88888 S 8 88 88 y ., yy y 2 yl z r A W Y Y N og N N P + V N N N S o o�N N � 5N5���.n v v�~ 55�� '�w v • m N a v 55��xx �c rr � VI S 888888 88 88 8 888 8 88 88 s8888 8 $ $ $ 888 H S m ^ N Q c N N s o ff 8 8 8 88 8 8 $ 8 8 8 8 8 8 8 8 S 8 8 S s 8 s $8 $ s $ 8 8 8 00 ° 3 0 T 8 888888 88 $8 88888 88 88 88888 8 :: a8 8 8 8$ o -Zi v v K xti N N�.. 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' 8 . . $ao 8 888888888888 88 S$ 88888888 8 �o8 G 072 1� Looking Ahead: Key Projects for 2020-2021 Expanded In-House Digital Marketing - Dedicated Instagram and Facebook accounts for HB Downtown and Surf City Nights (for when the event returns). - Creation of HB Downtown style guide - Consistent weekly cadence of posts - Monthly newsletters - Bi-monthly blogs Main Street Outdoor Dining Program Management - Administration of extended 2nd block closure - Management of downtown design program Families First Program - Creation of family-focused programming during fall 2020 to support HB students and parents in the absence of on-campus education. - Concepts could include Surf City Study, Open Air Art, Movie Nights, History Exhibits, and Children's Story-time. - Emphasis on open-air locations. - All concepts will follow exacting safety and distancing protocols. Expanded Farmer's Market as a Phased Re-introduction of Surf City Nights - Emphasis on adding new farmer's and unique food purveyors to the Tuesday night event. Property Owner Communications and Forums - Regular meetings to develop a unified vision of downtown. Together, with local merchants, residents, and the City, we are situated to power through the global pandemic of 2020. The HB Downtown Business Improvement District continues to work hard behind the scenes to be a catalyst for a thriving and live-able downtown, nationally recognized for its diverse local businesses and authentic, unique culture. Known for being welcoming, accessible, clean, safe, fun, and environmentally conscious. 19 ? N t1tQ C m Frankfort Ave o o c Y `a• 0 White Sand tin t x 4 J q 2 Sun s Elmira Avev `y y _ 13, q� ro tr F q m m rr, Coral Ln r r Detroit Ave`? a 1 �lue Fin Manning Park 2 Ghicagn Avg Mermaid _> dc, Shell Cir - 'qc Bay Dr u n Baltimore Ave m y o oBeaehrornber Dr Atlanta Ave a ra ' ,Nllterlall Cir u v V o E yeawail Cis in A to e c E to a xe a Paeiric City c 8 to 4fainrnast or Southwind Cir Park a rn rn _ C St I c d D St $aitpnat Cir Moonmi$t Cir = E St F St Seabrea?n Ot a � L y Lorenzo Dr c J _ c Co o ~ u 'Je ro�Jb 1110 2 n Huntington Beach cc Downtown Business Improvement District m Boundaries and Benefit Zones I & 2 if Businesses to be Assessed—Fiscal Year 2020-2021 Business Name: FIRST BANK ZIMBABWE HB GIFTS&ACCESSORIES (CT) SHOREBREAK HOTEL THE IRISHMAN BLACK BULL CHOP HOUSE BOLT TOURS NAILED IT NAIL BAR PEDEGO HB SALT HAIR LOUNGE ESTHETICS AND LASH EXTENSIONS BY HANNAH ARIA HOOKAH LOUNGE SALT LIFE LLC JACK'S SURFBOARDS C V S/PHARMACY MODERN PARKING INC SMILES CAFE GENTLE DENTAL HUNTINGTON BEACH MAIN STREET CLEANERS BOGGELN &COMPANY CPA COMPASS E J I DESIGNS STYLING BY STEPH COLOR ME ALLIE DASH OF SASS ANDE'S PERUVIAN ARTS&CRAFTS ANDE'S PERUVIAN ARTS&CRAFTS HOT TRENDS SUNGLASSES(CT) THE FUNNEL HOUSE NORTH SHORE POKE NO KA OI SANCHO'S TACOS KILLARNEY'S TOP HB NAILS DARE ME BIKINI SMOKERZ LAND 3 SMOKE SHOP ZEPHYR BARBERSHOP CASSANDRA CAPRI HAIR COLDSTONE CREAMERY MIN'S DYNASTY PERMANENT MAKEUP MOTIF ON MAIN SALON 7-ELEVEN STORE BEACHISLAND 1 KENNETH BROW SALONS JAX BICYCLE CENTER SAIL PROPERTIES INVESTMENT BUILDERS LLC WAVELENGTHS RECOVERY LLC PERFECTED WEALTH MANAGEMENT KOKOMOS SURF SIDE INDARRA MODERN INDIAN CUISINE MAIN ST BARBERS HOT TRENDS SUNGLASSES(CT) HOT TRENDS SUNGLASSES(CT) GRATER GRILLED CHEESE CHARLIE'S GYRO ZACKS PIER PLAZA BRUXIE-GOURMET WAFFLE SANDWICHES BLK EARTH SEA SPIRTS ZACKS TOO DWIGHT'S BEACH CONCESSION SURF CITY STORE CALI CLOTHING II BEACH WAVES SKIN REHAB SURF CITY SEGWAY HUNTINGTON SURF&SPORT MAIN STREET DAY SPA BEAUTY BUNGALOWS BY PORCELAIN PRISTINE MOTORSPORTS VEGWARE PACKAGING INC PARKING CONCEPTS INC THE UPS STORE#4482 LEE ROBINSON, CPA TURN KEY HOMES SPEEDY CREDIT REPAIR INC F H A REVIEW LUNA UNITED PACIFIC SOTHEBY'S INTERNATIONAL REALTY RMA INTERNATIONAL LANDSCAPE ARCHITECTURE ZERO ZERO PIZZERIA WAHOO'S FISH TACO LONGBOARD RESTAURANT& PUB MANGIAMO GELATO NAUGLES ROCKIN FIGS SURF HEADQUARTERS MAKIN WAVES SALON SALON VEYSEL BARE BUNNY AESTHETICS 2 SOCK HARBOR AMERICAN VINTAGE BASKIN-ROBBINS#362100 MODEL CITIZEN SURF CITY CHIROPRACTIC MAILBOX STATION INNOCEAN WORDWIDE AMERICAS ROBERT KOURY PROPERTIES MINNOW ELEVEN ARMIJO ANTHONY(CT) CELLORION (CT) HUNTINGTON SURF INN T K BURGERS JIMBOY'S TACOS RITTER'S STEAM KETTLE COOKING CRABBY'S BOAT HOUSE 2ND FLOOR FAD CRUISERS PIZZA BAR GRILL ALOHA GRILL GALLAGHER'S PUB&GRILL RUBY'S SURF CITY DINER MAIN STREET OPTICAL& BOUTIQUE THE BLOW DOWN M E HELME HOUSE FURNISHING CO DING DR BOW AND ARROW HAIR LOUNGE LOVE LOCKS HAVAIANAS SANDALS EL DON LIQUOR RAY'S RENTALS GALITZEN PROPERTIES A&S ACCOUNTING SOLUTIONS H M R ARCHITECTS INNOCEAN WORDWIDE AMERICAS BOARD WEST AMBIT CONSULTING LLC KUBO ZIGGYS ON MAIN WELLS FARGO HOME MORTGAGE SESSIONS WEST COAST DELI DAIRY QUEEN HURRICANES BAR&GRILL FRED'S MEXICAN CAFE CUCINA ALESSA HB JACK'S BEACH CONCESSION SURF CITY EXPRESS GIFTS CENTER 3 ROCKY MOUNTAIN CHOCOLATE FACTORY SAKALSURFBOARDS SALON RETRO NEIRA DESIGNS& FIX-IT MONTGOMERY JEWELERS EV RIDEABLES LLC NO MOORE FUZZ PACIFIC COAST BODY SCULPTING LLC QUIKSILVER HUNTINGTON BEACH EASY RIDER, DANK CLOTHING F45 TRAINING YORKTOWN PIERSIDE COMMISSARY LAZ PARKING CALIFORNIA LLC FLYWHEEL WEAVER&ASSOCIATES GRUPO GALLEGOS SOLENA LANDSCAPE EIDO EXPRESS DONUTS CELLORION (CT) ZIMBABWE HB GIFTS&ACCESSORIES(CT) TZONE SUSHI ON FIRE THAI WAVE HUNTINGTON BEACH BEER COMPANY SURF CITY ALE HOUSE LETS GO FISHING SURFBOARD AND BIKE RENTALS MOOD SWINGS HOSTETLER KERI SKINSATIONAL MAIN STREET WINE COMPANY PARLOUR E LEV EN HUNTINGTON BEACH BICYCLE COMPANY MAIN STREET LIQUOR HUNTINGTON SURF&SPORT COASTLINE REAL ESTATE INVESTMENTS LLC CONTINENTAL CLEANERS CDA MARKETING GROUP INC P R TALENT HEADLINER SURF CITY SKATES BEAUTY&THE BEACH STUDIO AUTOMATED CASH MANAGEMENT SYSTEMS (ACMS) SURF CITY EXPRESS 4 POSITIVE THOUGHT BRAND ZIMBABWE HB GIFTS&ACCESSORIES(CT) PETE'S MEXICAN FOOD ICECREAMTON SOFTY ICECREAM S HANDCRAFTED CHURROS B J'S CHICAGO PIZZERIA DUKES WATERFRONT HILTON BEACH CABANA BEEBEE NAILS NOELLE CHRISTINE BEAUTY DANIEL JAFFE DDS LUCY'S TAILORING &ALTERATIONS SURF CITY HOLISTIC MEDICINE MCA TRADING LLC HAMLIN GOODING DING TEA JAN'S IHOP MAIN STREET HAIR COMPANY SUGAR CABANA CALI SHORE STORE HAVEN OF WELLNESS EUROPA NAIL STUDIO THE TRAINING SPOT HUNTINGTON BEACH REALTY HORN HOLISTIC ACUPUNCTURE DIRTY DOG WASH RIO MEDIA INC RICHARD HARLOW&ASSOCIATES 221 N MAIN STREET BEACH PROPERTIES LLC BOBASAUR THE ICE CREAM WAY SUGAR SHACK SHARKEEZ HQ GASTROPUB KITE CONNECTION GLAM BY INK GLAM BY INK BROWS ON MAIN ELEVATE SPA SERVICES SUITE INSPIRATION SURF CITY MARKET PORCELAIN 7-ELEVEN STORE#35767B SUNWEST REALTY BRENT O NICHOLS DDS IPA 1031 GROUP LLC 5 TEAM DESIGN &CONSTRUCTION RIPCORD DIGITAL INC W&R STUDIOS SUBWAY BANZAI BOWLS LUIGI'S PERO'S NIGHTCLUB&SPORTSBAR COACH'S MEDITTERANIAN GRILL SHABU ON FIRE BODHI TREE VEGETARIAN CAFE ORANGE COUNTY BARBERS PARLOR JOLYN CLOTHING COMPANY DIANES/BEACH FEVER FOREVER 21 RIP CURL SURF CENTER SIGNATURE PRINTING A STREET PARTNERS CORREA&ASSOCIATES J &J COASTAL LENDING HOWARD FISCHER DVM MILK AND HONEY HB 25 DEGREES ARMIJO ANTHONY(CT) 602 COFFEE HOUSE STARBUCKS COFFEE COMPANY#575 AVILA'S EL RANCHITO H B DOS TOROS SANDY'S BEACH SHACK 1 LOOK VINTAGE ALCHEMY SALON LEATHER AND LACE O C MERRILEE'S INC CALIFORNIA CLOTHING STUDIO 37 SALON CAPITAL INVESTMENT NETWORK INC PHOTO HOUSE INC T R RANCH SERVICES LLC THE NEXT LEVEL W& R STUDIOS MAILPIX INC SURFLINE CB INVESTMENTS INC WESTLAND BUSINESS SERVICES INC PACIFIC RIM TAX&ACCOUNTING ATM GLOBAL INCORPORATED 6 JUVE CREATIVE INC GUARANTEED RATE INC BOMBURGER BLUE CHAIR ACCOUNTING 7 2020 - 2021 HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENT FORMULA OCT 01,2020-SEP 30,2021 Category Benefit Zone 1 Benefit Zone 2 Retail Businesses(includes Nail/Hair/Skin Salons) 1,000 sq.ft. or less $351 $200 1,001 to 2,500 sq.ft. $702 $400 2,501 to 4,999 sq.ft. $1,053 $600 5,000 sq.ft. or more $1,404 $800 Restaurants 1,000 sq.ft.or less $351 $200 1,001 to 2,500 sq.ft. $702 $400 2,501 to 4,999 sq.ft. $1,053 $600 5,000 sq. ft.or more $1,404 $900 Hotels 20 rooms or less $468 $400 21-50 rooms $936 $800 51 rooms or more $1,404 $1,200 Services/Office First Floor $281 $160 Basement, Second Floor or higher 1,000 sq.ft. or less $120 $90 1,001 to 2,500 sq.ft $150 $120 2,501 to 4,999 sq.ft. $300 $150 5,000 sq.ft. or more $700 $350 Cart/Kiosk $100 $80 Banks/ATM $600 $400 Seasonal(open fewer than 9 months/year) $500 $300 • On APRIL 29, 2020, City Council voted to defer payment of required business license fees and BID assessments through September 30, 2020. • There are no changes from the 2018-2019 Assessment Formula • Assessments are paid annually, as a requirement to receive and/or renew a business license for organizations operating within the Business Improvement District. • Assessment excluded for apartments, real estate agents, non-profits, home-based businesses and temporary vendors. • Business and non-profit organizations outside the area may join with the approval of the BID Board by paying the equivalent fee annually. • Non-profit organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the HB Downtown BID directly. Res. No. 2020-50 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a Regular meeting thereof held on September 8, 2020 by the following vote: AYES: Posey, Delgleize, Hardy, Semeta, Peterson, Carr, Brenden NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California