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HomeMy WebLinkAbout2021 - Huntington Beach Downtown Business Improvement Distri Bf�CT/�i4y►fiL vL RPPPIOvED 6- o-/ (Pas&-y-ASS- vr) City of Huntington Beach File #: 21-715 MEETING DATE: 10/5/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa. Director of Community Development Subject: Public Hearing to consider adoption of Resolution No. 2021-56 approving an Annual Assessment within the Huntington Beach Downtown Business Improvement District for Fiscal Year 2021-2022, and authorize appropriation of fund Statement of Issue: On September 7. 2021 , the City Council adopted Resolution No. 2021-42, declaring its intention to levy an annual assessment for the Huntington Beach Downtown Business Improvement District, and authorized the City Clerk to schedule a public hearing for October 5, 2021 The City Council is now requested to conduct that public hearing and consider adopting Resolution No. 2021-56 to approve the assessment for Fiscal Year (FY) 2021-2022. Recommended Action: A) Conduct the Public Hearing, and. B) If written protests of at least 50% are not received, adopt Resolution No. 2021-56, "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 2021-2022": and, C) Appropriate an additional S16.000 for a total of S106,000 into fund 710 for FY 2021-2022. Alternative Action(s): 1) Modify elements of the Annual Report, such as the proposed assessments, activities and/or improvements to be funded, district boundaries. categories of assessments, or benefit zones and amend the Resolution. or 2) Do no approve the resolution if written protests of at least 50% are received. Analysis: City of Huntington Beach Page t of 6 Pnnteo on 9r292021 377 File #: 21-715 MEETING DATE: 10/5/2021 Background In September 2004, the City Council approved Ordinance No. 3661, establishing the Huntington Beach Downtown Business Improvement District (the "District") to fund promotional activities benefiting all businesses within the boundary area. In addition, pursuant to State Law, the City Council appointed an Advisory Board for the District. The purpose of the Advisory Board is to make recommendations to the City Council regarding the expenditure of revenues derived from the assessments, the classifications of businesses, and the method of levying the assessments. The Advisory Board's recommendations are then considered by the City Council at a noticed public meeting and approved or modified by the City Council. In 2008, the City Council adopted Ordinance No. 3797, amending Ordinance No. 3661, to change how the Advisory Board was selected and subsequently approved Resolution No. 2008-04 appointing a non-profit corporation known as the Huntington Beach Downtown Business Improvement District (HBDBID) to act as the Advisory Board for the District. The HBDBID is a private, 501c(6) business based organization focused on creating a thriving downtown by providing consumer marketing, events, security, cleanliness, beautification, and member engagement. Annual Report and Proposed Budget While the economy continues to adjust from the COVID-19 pandemic, downtown remains well- positioned to recover from the adverse impacts of reduced tourism, loss of business conventions, cancelation of weekly and signature events, and periodic disruption from civil unrest. The past year has been difficult on businesses that were forced to close temporarily, alter their business model, experienced staffing shortages, or were dependent on traffic from popular events that were put on hold. Despite these challenges, the nearby beach remained a local and regional destination, with diners patronizing expanded outdoor dining areas and business owners pivoting operations to attract new sales. In light of the pandemic, the HBDBID has taken steps to improve operations and develop programs and events that support downtown businesses. Although assessments collected were less than projected and Surf City Nights, a major revenue generator, was canceled throughout most of FY 2020-2021, the HBDBID was awarded COVID-19 related stimulus funding which helped to offset the decline in revenue. The HBDBID communicates regularly with businesses and actively identifies ways to stimulate commercial activity in partnership with the City, Visit Huntington Beach (VHB), and the Chamber of Commerce. Improved marketing efforts have helped to promote the downtown area and include the increase of social media exposure via Facebook and Instagram, and partnerships on local campaigns such as the OneHB Clean & Safe Pledge, 12 Blocks of Cheer, and Show your HB Love. For additional information, a copy of the FY 2020-2021 Annual Report is attached which provides an overview of the past year. Other notable achievements include enhancements to safety and cleanliness with the re-introduction of the Ambassadors Security Program and a re-evaluation of maintenance services. The Ambassadors Security Program has played an instrumental role in the safety of downtown and will continue, in partnership with VHB, to work with business owners, patrons, residents, and the City's Police Department to address safety-related issues by observing and reporting situations concerning well-being and safety within downtown. Maintenance operations, with funds administered through the City of Huntington Beach Page 2 of 6 Printed on 9/29/2021 oowerc3M Leo,sia,7- File #: 21-715 MEETING DATE: 10/5/2021 City's Public Works Department for the maintenance agreement, saw an increase in takeout trash which prompted a reevaluation of power washing and daily porter services. The City and the HBDBID recently collaborated on a Request for Qualifications with the objective of expanding the footprint of cleaning services while also focusing on the most heavily trafficked areas. Looking ahead, the FY 2021-2022 Annual Report outlines opportunities that will be explored to provide a cleaner, safer, and more pedestrian-friendly downtown by incorporating lessons learned from COVID-19. In addition to enhanced maintenance and safety measures, other efforts to increase economic vitality include rebranding, new off-peak events, expanded social media engagements, redesign of the website, and improved membership services through marketing, communications, and programming. The return of successful holiday events such as Halloween and Miracle on Main Street and new events like Surf City Movie Nights will help to increase foot traffic and consumer spending throughout downtown. In 2017, a revised Reserves Operating Policy established guidelines for how resources can be used to benefit downtown businesses and included a suggestion to maintain one year of operating expenses. As of June 30, 2021, there is a reserve of $160,733.80 (reflected on the Statement of Financials in the Annual Report) which includes $100,000 in Economic Injury Disaster Loan (EIDL) funds which helped compensate revenue losses associated with COVID-19. The HBDBID received a total of $150,000 in EIDL funds and the remaining $50,000 was used to cover operating costs this past year. The proposed FY 2021-2022 budget will increase slightly from the previous year from $538,930 to $549,330 due to increased revenue from new and returning events and grant funding. While projected annual BID assessment revenue Is only 19% of the total budget, recurring event revenue from Surf City Nights continues to be robust at 33% of the budget, even with a reduction in vendors resulting from the expansion of outdoor dining. Assessments are projected to be less than 100% collection based on past years' receipts. Integrating the annual business license and the BID assessment fees into one invoice will assist with monthly revenue collections. For this reason, the projected assessment revenue is higher than actual FY 2020-2021 collections but lower than what was budgeted for FY 2020-2021. Changes to expenses can be attributed to marketing and events, repayment of the EIDL, and other minor program modifications. The proposed budget for FY 2021- 2022 is summarized below, and includes variances from last year's approved budget, as well as the operations and revenues of Surf City Nights and the maintenance agreement, which previously operated under its own budget. INCOME: Y 2020-2021 FY 2021-2022 (PROPOSED) VARIANCE APPROVED BUDGET) City of1413 Maintenance 'ISS.430 S 188,430 '0 BID Assessments 124,000 "106,000 'S1S.000) Surf City Nights ;151300 '182,400 "29.900 Surf City Days '0 S15.000 "15.000 Summer Kickoff Event 0 10.000 ir 10,000 Chili at the Beach '25.000 10.000 S15.000) City of Huntington Beach Page 3 of 6 Printed on 9/2 912 0 2 1 powereVd Legivar• File #: 21-715 MEETING DATE: 10/5/2021 Surf City iNlovieNights s0 "17,500 '17,500 Families Forward Program "11,000 '0 Sl 1.000) Nlain St. Outdoor Program S3.000 so 53.000) Halloween so 35,000 35,000 City of H13 Grant '0 310,000 '10.000 Miracle on Main "5.000 "5,000 ro Transfer from Reserves "30,000 0 530,000) TOTAL INCOME: 538,930 549,330 /0,400 F\PENSES: Maintenance S 176,430 S 176.430 so Marketing/Advertising S16.500 S10.900 55,600) .Ambassador "36.000 340,200 34.200 Office Expenses 53,000 S1,200 S1,S00) Bank Charges "1.200 S1.200 '0 Dues fi Subscriptions S3.000 "3,000 s0 Insurance "1,900 "1.900 s0 Accounting '6,950 37.350 S400 License & Fees S2.000 32.000 so Repairs & Maintenance 3500 3500 "0 Rent &- Storage "14,900 14,600 5300) Tel ephone/Internet S2.200 S2,220 S20 Nlecting/Training '1,650 "800 SS50) Board of Directors Election '0 32.000 '2.000 EIDL Repayment -0 37.668 37.668 PAYROLL: Executive Director S100,000 S100.000 0 Events Coordinator/Mner. S45.000 363,600 15.600 Admin. Asst. '15,600 so 515.600) Pavroll Taxes -2,000 '0 52,000) Workers Comp. 31.250 so 51.250) Payroll Expenses "1.700 225 S1.475) Security '0 ro '0 BID EVENTS: SCN Rental & Set-up S22,500 312,000 S10.500) SCN Street Cleaning '2.400 '6,000 33.600 SCN Closure S3.700 S6.000 32.300 SCN Parking 56,900 32.400 54,500) SCNiliscellaneous 34500 36.000 31.500 SCN Quickbooks 9.000 33,645 55.352) 131D Event Misc. 0 7,959 "7,959 Summer Kickoff Event '0 110.000 '10.000 City of Huntington Beach Page 4 of 6 Printed on 9/29/2021 cower[360 Legistar° File #: 21-715 MEETING DATE: 10/5/2021 Chili at the Beach '15,000 S10.000 S5,000) Surf City Days "0 "5,000 5,000 Surf City \loyie Nights so "4,500 "4,500 Air Show "0 so '0 Halloween 35.150 310,000 '4,550 \liracle on \lain 10,000 101000 "0 Holiday Beautification 25,000 $20,000 S57000) TOTAL EXPErVSES: S538.930 S549,330 S10,400 CASHRESERVES S150.706.89 S160,733.80 S10.026.91 District Renewal Funding recommendations to the City Council are made by a ten (10) member (nine voting members, one non-voting member) Advisory Board, which is elected annually by assessed members. State Law requires that improvements and activities funded by assessments benefit businesses located within the District. Downtown businesses are assessed based on their size, location, and business type. Assessments range from $40 to $1 ,404 per annum. For FY 2021-2022, there are no changes to the boundary map or the assessment formula (Exhibit B) which was last amended in FY 2018- 2019. Per State law, business owners within the District may submit a written protest of the proposed assessment being considered by the City Council. Any protests received will be weighted by the assessment to be paid by those businesses. If businesses representing a majority of the assessment do not want to the District to continue (weighted by the total value of the assessments, not by the number of protests received), the City Council cannot levy the assessment for one year. If there is no weighted majority against the assessment, the District will continue. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(4), government fiscal activities that do not result in a physical change in the environment and do not commit the lead agency to any specific project, do not constitute a project. Therefore, these activities are exempt in accordance with CEQA Guidelines Section 15060(c)(3). Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. Resolution No. 2021-56, "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 2021-2022" 2. Exhibit A - Huntington Beach Downtown Business Improvement District FY 2020-2021 and FY 2021-2022 Annual Reports 3. Exhibit B - Boundary Map, List of Businesses to be Assessed for FY 2021-2022, and City of Huntington Beach Page 5 of 6 Printed on 9/29/2021 oowerc36:1i Legistar— File #: 21-715 MEETING DATE: 10/5/2021 Assessment Schedule for FY 2021-2022 4. Types of improvements and activities proposed to be funded City of Huntington Beach Page 6 of 6 Printed on 9/292021 oowercW2 Legistar" RESOLUTION NO. 2021-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANTNTUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2021-2022 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 2021-2022 pursuant to the process detailed in Streets and Highways Code 536500, et seq.: and The District's Advisory Board has prepared and filed with the City Clerk a report an "Annual Report" and "Proposed Budget for Fiscal Year 2021-2022" (collectively, "Annual Report"); and On September 7, 2021, the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2021-2022 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 2021-2022 and a description of the improvements and activities to be provided for Fiscal Year 2021-2022. 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 2021- 2022 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. 21-10271/266400 1 Resolution No. 2021-56 SECTION 4. This resolution shall take effect on Oc-.tnher S 2021. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the S"ti day of 7x,ezJ 2021. o �� Mayor REVIEWED N APPROVED: APPROVE AS TO FORM: City Manager zy City Attorney 21-10271/266400 2 00w470w � z • A � y HBDBID ANNUAL REPORT ;"i .._'. i-. *M� HUNTINGTON BEACH DOWNTOWN v;- BUSINESS IMPROVEMENT gip, zo DISTRICT 2020 - 2021 ALONE, WE CAN DO SO �---+-1 LITTLE, TOGETHER, WE CAN DO SO MUCH HUNTINGTON BEACH HELEN KELLER EXECUTIVE BOARD: President: i+ Dave Shenkman, The Kite Connection ' Vice President: Stuart Goldberg, INNOCEAN USA Secretary: Kelly Miller. Visit Huntington Beach Treasurer: Mike Williams, The Longboard • Restaurant & Pub DIRECTORS: Danny Othman, 602 Coffee i - Janice Tugaoen. Kimpton Shorebreak U Resort Jim Hall, Surf City Ale House Mary Eikenbary, Sandy's Beach Shack Sandra Schulz-Taylor. Model Citizen STAFF: Executive Director: Sarah Kruer Marketing Manager: Jaime Strong Office Admin: Jaime Strong 386 ABOUT: -- Founded in 2004, the HBDBID is a private non-profit 501c6 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. _ — 1- s� f` WHAT WE DO Create a thriving Downtown business = - district that delivers on the Surf City USA brand and attracts a quality _—� clientele year-round. In addition to consumer marketing, events. and member communications. the BIDr provides capital services to benefit Downtown in conjunction with : the City: Security �` -�` _ Cleanliness Signage . Beautification 1.6 s�=l 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 voice 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 Integrity: Transparency. Honesty, and Respect Strategic Results: Sustainable, ROI Focused, and Efficient Passion: Positivity and Unified in Cause 388 --- WI����1'=nrrr �rrriinrrrrli lil�ll�(��I The Huntington Beach Downtown Business Improvement District exists to contribute to the continued economic growth of Downtown Huntington Beach. as well as the quality of the overall experience for both visitors and locals. These objectives are achieved through a combination of stakeholder communications, business and civic collaboration. positive marketing and promotions. event programming, safety. cleanliness and member engagement. The challenges brought on by COVID-19 continued through the end of 2020, spiking with an increase in cases and a second stay-at-home order during the holidays. Dining. previously limited to outdoor, was restricted to takeout only. Retail occupancy shrunk to 20%. posing a steep challenge during December. Offices continued with remote work plans for their employees. Rallies continued periodically at Pier Plaza, causing further disruption to businesses. Despite all these factors. 2021 dawned with a sense of resilience and optimism as cases began to decline and restrictions were slowly lifted. Gorgeous weather compelled locals and regional visitors to enjoy Surf City's 10 miles of coastline. biking and jogging paths. Outdoor dining patios were full (as were the adjacent trash cans) as local residents patronized Downtown's vibrant retail and restaurant scene. Savvy operators had continued to pivot throughout the preceding months and many (though not all) found themselves well-positioned for recovery with an ample number of economic programs including EIDL and PPP loans providing essential support. While vacancies plagued other destinations. Downtown HB was fortunate to have very few businesses close during the pandemic Overall BID membership declined from 272 to 263 between 2020 and 2021. However. Downtown has seen a positive trend towards new businesses entering the district including restaurants like ]ay Birds and Mahkin and retail like SMKFLWR Surf City Nights returned with great fanfare on March 16. 2021 and has continued to safely attract hundreds of visitors Downtown every Tuesday night. Looking ahead. there are significant opportunities to transform the positive lessons from COVID into lasting aspects of the Downtown experience including an emphasis on cleanliness and safety, an increase in outdoor dining and pedestrian areas. attracting locals and families throughout the year with signature events. and consistently providing an authentic. quality Surf City USA experience to visitors in collaboration with the hotels. 389 SECURITY f f LA AMBASSADORS The Ambassadors Security program through 12"0"27 Protective Services, aka Big Tony. officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. VHB and the BID continue to fund the Ambassadors though adjustments were made to accommodate reduced budgets including a 3-man team instead of the recommended 4-man team through the fall of 2020 and spring of 2021. A 4-man team will return Downtown every Friday, Saturday, and Sunday in 8-hour shifts from July 1st through the first weekend of October. After that they are projected to be on duty two weekends per month based on budgetary constraints. The purpose of the Ambassadors is to establish a rapport and presence with business owners. patrons, and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. HBPD COMMUNICATIONS The BID appreciates a positive. collaborative relationship with the HBPD. Challenges associated with COVID and weekend rallies only served to increase the value of open, direct communication between organizations to ensure the safety of Downtown HB, In June 2021. the BID. VHB, and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. 390 MAINTENANCE �t BEAUTIFICATION '1 x, COVID placed a spotlight on the importance of cleanliness. Power washing and daily porter service are essential to the maintenance of Downtown HB, which is a very active destination throughout the year. MALCO continued to do an excellent job providing power washing and porter services during the pandemic. During the mandate for restaurant takeout-only during the winter of COVID made trash collection and frequency even more vital to Downtown HB. While January is typically an off-peak month, mild weather and a dramatic increase in takeout trash prompted the BID and the City of HB to re-evaluate trash collection services. quickly shifting back to an on-peak collection schedule months ahead of time. The BID and the City of HB collaborated on a new RFQ for power washing and porter services in May with the goal of awarding a new contract by August 2021. The objective of the RFQ is to expand the footprint of cleaning services across a larger space while also strategically increasing power washing in the most heavily trafficked areas. 391 TOURISM vx: h vC; i ourism plays a Key role in hunungion tseacn s current ana long-term economic prosperity and helps generate more business opportunities for Downtown. The decline in travel due to COVID-19 devastated the U.S. economy with a shocking impact of nearly $500 billion lost in travel spending - a decrease of 36% domestically and 79% internationally since the beginning of March 2020'. To encourage support for local HB businesses, the Downtown BID partnered with Visit Huntington Beach on local campaigns throughout 2020-2021 such as the OneHB Clean & Safe Pledge. -Masks Up. Surf City." 12 Blocks of Cheer and Show Your HB Love. As the vaccination rollout continues and infection rates are falling. Huntington Beach is well positioned to welcome visitors safely and has seen significant improvements in occupancy rates with weekends approaching pre- pandemic levels. The return of Huntington Beach's signature events and reopening of Southern California theme parks and attractions has brought strong visitation numbers to the destination. With travel momentum building and pent-up demand generating bookings. Visit Huntington Beach will continue to market and sell the Surf City USA brand experience to extend the length of overnight stays. rebuild workforce and increase visitor spending. ' Source. U.S.Travel Association 392 BID MEMBER OVERVIEW AND ZONE ANALYSIS J e .. . c i -`� 2 cam... rl' 2 a..w... Y.... .Y�4 - •i, `ter a �^r.".c. r � lctr e.r �1n u, w•�.c. w ru ..r as C �f Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones 1&2 THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . 393 BID ASSESSMENT CHART Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $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 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 394 Seasonal, 9 mos or less $500 $300 Of the 162 businesses in Zone 1, 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1 , indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. zone 1 Zone 1 Carts 13 $100 $1,300 Carts 13 $1,300 Hotel Hotels 1 $1,404 201 less Restaurants 53 $43,173 21-50 50• 1 $1404 $1,404 Retail 50 $32,292 Banks 1 S600 $600 Service/Office 44 $9,331 Restaurants Bank 1 $600 S35100 12 54,212 162 $88,100 $702 00 18 $12,636 $1.05300 17 $17,901 $1.404.00 6 $8,424 ZONE 1 S3 $43,173 $43.173 «me Re" S351.00 21 $7,371 Min 5702.00 20 S14,040 rm asm $1,0S3.00 5 $5.265 rr� ev 51.404.00 a $5.616 m u r rWr uo° So $3z,292 Cre ww °�vw� Yr Lr[r aw $erwKe/O to d4° S28100 11 $3,091 512000 27 $3,240 $15000 0 $0 S300.00 3 5900 S70000 3 52,100 M $9,331 59,331 $W,too 395 Of the 99 businesses in Zone 2, 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together. restaurants and retailers generate 680/6 of BID assessment fees in Zone 2. At 37. Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 Zone 2 Seasonal 6 5300 s1,800 Seasonal 6 $1,800 Hotel Hotels 1 5400 20/less 1 540O 54W Banks 1 5400 21.50 Restaurants 9 $3,700 50• Retail 45 $12 400 Banks 1 $400 54W Service/Office 37 54,860 Restaurants 99 $23,560 $200,00 3 56DO DO $400.00 4 51.600.00 ZONE 2 $600.00 1 $600.00 ixw 5900.00 1 5900 DO 9 $3,700.00 $3,700 rac Retail 5200.00 33 56,600,00 ..m $400.00 9 53,600.DO - —� —�' —�" • " , $600-00 1 5600.00 !• e.. �.• ���• �• n. 5800.00 2 51,6D0 00 4S $12,400.00 $12,400 Service/Office 5160.00 21 53,360.00 $90.00 14 $1,260.00 5120.00 2 5240.DO $150.00 0 50.00 $350.00 0 $0.00 37 $4,960.00 $4,860 $23,560 396 Outside of Zones 1 and 2, two hotels, the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel, both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory 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. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken, Mahkin (Opening Date July 2021 ). Diane's Bikinis (New Owners), Aloha Grill (New Owners). Haus of Bunnies (Opening 2021 ), Hidden Beauty OC, SMKFLWR 397 ASSESSMENTS As of June 30th, the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021. The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount. M�uwwwrA rruua.r.wNw _ r �r rrrt eras rw Part .rt as. .w� �.rY..r r.rYrrr� P�N.�rwrrrarrw.r. w�/w1�M Pr N1Yrw Iy w1�Nrl �. M9Y�9.1�1�• y •� Cr YPYPr�P�r1ti rN PM�P�wa.gP•rl0 wNPa�YYP .ti.r,/w �� P wYaYirlOwr.Y�N wuPaw�• eswrt+PNarw• Ow�Ytaww! Y rr1 Vrr w..Wr r.wwrrrrti rn.w.r P...r�rrwr�rrrr..r� ram. r r r r•�rawr r`war �!urrr- wwwrwN wrY�wr rw.4 r`r r014 �rar rrw O�N�.ww.r.wN EIDL LOAN In late October 2020. the BID applied for an EIDL loan, which was awarded in the amount of $150,000 on Dec. 31, 2020. $50.000 was placed in the BID's Main Account for use as operating capital. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19th. the BID began the process of requesting approx. $45.300 in additional EIDL funds. CITY OF HB COVID GRANT On May 24th, the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10.000 on June 14th. The funds will be placed in the BID's Main account to use for marketing and operating expenseiJor the 2021- 2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank- Main Acct 1,274.11 1030 First Bank-MM 160,733.80 1040 First Bank-Malco 25,692.16 Total Bank Accounts $187,700.07 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 0.00 Total Other Current Assets $500.00 Total Current Assets $188,200.07 Fixed Assets 1640 Machinery 8 Equipment 11,651.68 1660 Office Equipment 538.74 1670 Computers 1,306.31 1700 Accumulated Depreciation -13,496.73 Total Fixed Assets $0.00 TOTAL ASSETS $188,200.07 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 Long-Term Liabilities 2400 Notes Payable- SBA EIDL 150,000.00 Total Long-Tenn Liabilities $150,000.00 Total Liabilities $148,961.63 Equity 3100 Unrestricted Net Assets 122.544.38 Retained Earnings 0.00 Net Revenue -83,305.94 Total Equity $39,238.44 TOTAL LIABILITIES AND EQUITY $18B,200.07 399 Cash Basis Monday,July 12,2021 04:52 PM GMT-07:00 1/1 Huntington Beach Downtown Business Improvement District Budget vs. Actuals. 2020-2021 Budget - FY21 P&L October 2020 -June 2021 TOTAL ACTUAL BUDGET OVER BUDGET %OF BUDGET Revenue 4050 BID Assessments 53,757.00 98,000.00 -44,243.00 54.85°% 4100 Chili at the Beach 25,000.00 -25,000.00 4300 Surf City Nights 92,177.40 87,500.00 4,677.40 105.35% 4400 Surf City Days -10,000.00 -10,000.00 4500 Miracle on Main 5,000.00 -5,000.00 4600 Main St. Outdoors 3,000.00 -3,000.00 4650 Families Forward 11.000.00 -11,000.00 4800 City of HB Maintenance 128.276.00 133,578.00 -5.302.00 96.03% Unapplied Cash Payment Revenue 0.00 0.00 Total Revenue $264,210.40 $363,078.00 $-98,867.60 72.77% Cost of Goods Sold 5100 Rental & Setup 7,583.00 15,000.00 -7,417.00 50.55% 5150 Parking 561.00 4,500.00 -3,939.00 12.47% 5200 Street Cleaning 1,600.00 .1,600.00 5250 Street Closure 2,400.00 -2,400-00 5300 Event Expenses 1,853.30 20,150.00 -18,296.70 9.20 % 5330 Entertainment 143.12 143.12 Total 5300 Event Expenses 1,996.42 20,150.00 -18,153.58 9.91 % 5500 Miscellaneous 3.000.00 -3,000.00 5600 Holiday Beautification 15,105.00 35,000.00 -19,895.00 43.16% 5800 Malco Maintenance 107.169.00 124,578.00 -17,409.00 86.03% Total Cost of Goods Sold $132,414,42 $206,228.00 $-73,813.58 64.21 % GROSS PROFIT $131,795.98 $156,850.00 $-25,054.02 84.03% Expenditures 7010 Advertising & Marketing 2,321.75 12,000.00 -9,678.25 19.35% 7050 Bank Charges & Fees 462.81 6,900.00 -6,437.19 6.71 % 7070 Consultants 119,516.00 110.997.00 8,519.00 107.67°% 7100 Dues & subscriptions 290.00 2,250.00 -1,960.00 12.89% 7150 Insurance 3,115.56 1,900.00 1,215.56 163.98% 7155 Workers Comp Insurance 201.00 1.100.00 -899.00 18.27/, Total 7150 Insurance 3,316.56 3,000.00 316.56 110.55% 7170 Legal&Accounting Services 4,955.00 5,450.00 -495.00 90.92% 7190 Meeting & Training 477.61 1,200.00 -722.39 39.80% 7191 Election 1.726.44 1,726.44 7200 Miscellaneous Expense 8.38 8.38 7210 Office Supplies 1,874.43 2.250.00 -375.57 83.31 % 7240 Payroll Expenses 7242 Wages -Administrative Assistant 6,984.67 11,700.00 -4,715.33 59.70% 7250 Payroll Taxes 578.89 1,490.00 -911.11 38.85% 7255 Payroll Processing Fees 968.91 1,250.00 -281.09 77.51 % Total 7240 Payroll Expenses 8.532.47 14,440.00 -5,907.53 59.09% 400 Cash Basis Monday,July 12.2021 04:57 PM GMT-07:00 1/2 Huntington Beach Downtown Business Improvement District Budget vs. Actuals: 2020-2021 Budget - FY21 P&L October 2020 -June 2021 TOTAL ACTUAL BUDGET OVER BUDGET % BUDGET 7280 Postage 93.50 93.50 7290 Rent& Lease 11,700.00 12,200.00 -500.00 95.90% 7300 Repairs & Maintenance 50.00 360.00 -310.00 13.89% 7310 Security 7315 Ambassador Program 55.323.47 24,000.00 31,323.47 230.51 % Total 7310 Security 55,323.47 24,000.00 31,323.47 230.51 % 7320 Taxes & Licenses 869.00 1.400.00 -531.00 62.07/, 7330Telephone 1,707.32 1,645.00 62.32 103.79% QuickBooks Payments Fees 1,891.43 1.891.43 Total Expenditures $215,116.17 $198,092.00 $17,024.17 108.59% NET OPERATING REVENUE $-83,320.19 $-41,242.00 $-42,078.19 202.03% Other Revenue 8000Interest Earned 14.25 14.25 Total Other Revenue $14.25 $0.00 $14.25 0.0D% NET OTHER REVENUE $14.25 $0.00 $14.25 0.000/6 NET REVENUE $-83,305.94 $-41,242.00 $-42,063.94 201.99% 401 Cash Basis Monday,July 12.2021 04:57 PM GMT-07:00 2/2 BUSINESS IMPROVEMENT DISTRICT 2020-2021 BUDGET I NOV DEC IAN FEB MAR APR MAY IUN IUL AUG SUP YEARLY TOTALS "CoUYo utl tdalnlrname 1g. 3a.0p 11,8W.00 ]], d00 11.(N0.00 9,49000 V,1&300 18,634.00 11,284.00 Il,)ga, 18,63A00 18.1IN.00 18,Ip3.Op Ig8.430.00 SIO Assessments $6,000.00 $15,000.00 $9.130000 $11,000.130 S10.000.00 512,000 00 $10,000.00 $13.000.GO $12p00.G0 510,000.GO wom,US 58.000.GO 5124,00G.CO 5u11 Fit,Nights $12,000.00 512.000.00 513,500 GO 514,p0U,GO SIa,Op0.00 $22,000.00 S22,000.GO $12.000.00 $21,000.00 51$2,500.GO Sort Co,Days $a m Chili at the Beach $25,000 0D $25."GO rionlles Forward Program 52,500 GO 52.50000 $1,000130 51.000.ou 51.000.SO Sl,00000 51,000.00 $I,I30o OD sow sow sow sow $11.000.00 Main St.Outdoor Program 51,000.00 $1,OOo.CAt 5I.",W $3,000 GO Declination omanm rn lloween 50 Ha 5G M a0 Miracle on Main $5.000.00 SS,000.00 Tramferlram Reserves $2.200.00 $1.500.00 52,50000 $2,500.00 S1,SOO.00 S.So0.M 51,500.GO 51,St)D.t30 52,50000 52,So0.00 $2.500.00 S;I5MO.GO $30,000.00 MDnthly TOtaIS 530,63a.p0 $3),861.00 525,1fi4.00 $3],Sa0.00 S35,190.00 $46,284.00 $46,13a.DO $A],)84.00 $]8.]84.00 $53,13d.p0 SSD,609.oO $49,609.00 538.930.00 EXPENSE: OCT NOV DEC IAN FEB MAR APR MAY IUN JUL AUG SLP YFARLYTOTALS Maca Main- 1J,634.00 10, 00 10,864.00 10,W0.00 .69000 L62MGO 17- Ib.)M 00 162PW 1), 34.00 1),1090p 1-$ ).L09.00 ]26,a30.00 MarLe.1/AMerllsing $1,L100.00 $1,00000 $1.00D SO 51,500.00 51,500.00 $1.S00.00 5115DD.ou $1,500.00 $1,500.00 51,500.00 511500.00 $11500.00 516,500.130 Ambassador AUS S000 50M $I,"GO S4,000.GO SA,0000o S4,000.0D S4, m,W 54,000.GO $4,000.o0 $a,000.GO y3,000.GO 536o0O.GO Office F"eme 5250.110 5250.00 525000 52MGO 5250 OD $250.00 5250.0O 52rA.SO $250.CO 52WOD $25000 $2A DO S3,600.CO Bank Charges Simit0 S100.00 5100.00 $IOO.OD $IOU130 $IOO.GO $10000 S100.O0 SIG30.00 510000 $100.DO $10000 51,20000 Dues R Su6udptlons $25000 52SD.GD $250.00 52W OD 52WW $250.W 5250.GO S250 GO 5250.00 Saw GO $25000 S250.00 53,BOO.M Insurance 5600.00 51,30000 51.9000O Accounting 550000 S500.00 5500.00 Swarm sow GO $1,100.o0 SS0O.0o 550000 SAII $500.00 550000 SA UDI) $6950.00 License&Fees SIAM $15000 5150.00 SIAM $150.00 5ISO SO $150.GO $Iwito 520000 520D.00 52WW 52WW $2,001D00 Metong/fratning $100.o0 510000 $100.00 S1S0.G0 $1S0.00 $150.00 $15G.0o SISO.00 SIAM $150.SO S1S0.00 5150.110 $1,650.GO E,,Ch. 58,333.GO 5R.333.GO SS,333.GO 58,333.SO $8.333.OD SS,333.SO 59.333.GO $8,33.GO S8,333.00 $8,333.GO $8,333.GO S8,337SO 5100000W Erents Mari $a'am GO 54,000.GO 54,001)GO $4000.SO $4,000.00 Sa,000.GO 54.000.GO yt, p ED 54.o0Do0 54,000.0E Sa,tA9o.00 54.000.UO SaRDWOO Admin Asst $1,300.SO $1.30DOO 51,30D.00 $1,300.00 $1,300.SO S1.300.00 $1,300.00 S1,300.00 $I,303.0G SL,3OO.00 51,30000 51,300.NO $15.600.00 Payroll T.." SI60.00 $1gGW 51L0IX1 516000 5110.00 $170DO $170 SO 5170.SO 5170 GO 51100E $170.00 $in OD $].00O OD Workers Camp $50.00 $50.00 $A SO SAM $AGO SAW 57WW SAW SAW SA SO $5000 $50.00 $1.150.00 PaYroO[•penes S125.00 5125.00 5125.M S175.SO 515G.GO 515000 $IAA SIAM SIAM SIAM) SIAM $I5000 51?00.00 SecurllY $0.00 $OOO SOW sow S0.00 SG OU SO.GO 50.00 Sow S0.00 sow $0.00 $DN Repairs/Maintenance 54.00 540.GO $40.US 540.DO $40.GO SaD.00 $40.SO $40.00 540.GO $40.DO SAW $50.GO S500.00 Rent B Storage $900.00 $90 w 59000o S900.00 55,000 SO 5900Go 590o00 $won $900.SO S9G000 $9W.W S90O.1g1 $Ia,900.00 Telephone/Internet $165.DO 5185.GO $195 GO 518500 $185.DO Sias GO 5185M 5]85.00 $I85.00 SIBS. S18500 SIR5.00 $2,2U0.GO BID EVENTS SCN Rental Set up sow sow SOGO 51.50000 52.50000 S2.AO.GO S2.AQOO 2,500.G0 57.50000 $2,wil 2,500.0p 52.50000 72,5G0.00 SCNSveel Cleaning SO GO Sam $O SO 52MGO 52WW $300 SO 5300.00 5300.00 5300.00 5300.00 $300.00 5200.GO 52.4100.00 SCN Street CJAi So GO $000 SO GO 54MBID 54MGO Samoa 54MSO Sap00p 5400.00 54WGO S"Ll $500.00 53,200.DO SCN Parsing 50.0p 50.a0 ADS 5100.OD 57M DO 57MCO 58130.00 $R00.00 $BW.IX3 $g00.DO Sam.GO Sam)SO 56,900.00 SCN Misellaneoos ASEE sow $O.I]0 SSOO.OD $S00.00 SWO.W SAO SEE $SOO.w SALES) Swat GO S500.130 $500.00 54,500.00 SCN Ouklbo0ts wro Am $0.G30 51.000.00 $1,000.00 $I,000O0 S1,000.00 SLOWER) $1,W w 51.000.00 51,I30000 51,000.00 $9,6O0.00 Chili at the beach S IS.000.00 $15.Oro 00 Sow sow Air Shaw so.DO Am uallum"n $5.150.00 $5,15D.0o Miracle An Main 5I0.00G.00 SIO,DOO.oO Hefidav Beautification $25.000W $25.000.OD Dissipation Downtown sow MONTHCYTOTA- 3S,OS.00 $68.457.00 SiR.D2.W 3),933. 46,8.00 ,312.00 5,1112.110-545,112.00 Sg,8fi2.00 5,21L011 ,69).00 .]01.00 538,930.00 VARIANCE INCOME VS EIPE14SL BUD 402 SOCIAL MEDIA ; I N STAG RAM all • Started:July 2020 • Followers: 341313 • Growth:333 new followers per month CP • Advertising spend:$120.00.$04 cent acquisition cost FACEBOOK • Relaunched. October 2020 - — -- • Followers.3.025 • Growth:336 new followers per month • 100%organic growth f� DOWNTOWN, )ID YOU KNOW?;; ; COMMUNICATIONS Downtown Blogs Press Release: Surf City Stroll. . ._, Surfer's Special and Surf .=�. . :.. Festival and Rockin Fig Bowl BID Member Emails like • ^�^� Downtown. Did You Know? and Member Newsletter TAKEOUT ALCOHOL POLICYt Consumer Messaging .... s MEDIA COVERAGE ""^'� r.��•.x r RtAK•MO =C %Ordi ar 'vG BI2EAFCINQ• �t1 w� �wc Rockin Fig Surf Festival BREAK�TiG • OC Register. Daily Pilot. Spectrum �AE'%M News and KTLQ Channel S PA "REAKI�IC Surf City Nights • OC Register and Daily Pilot r%" Ve �••w�v� t�so�•a•.•v� esao� s I I • '•w L SURF CITY • FARMERS' MARKET The Surf City Farmers Market was opened in September of 2020 to t provide essential needs for our community. Operating in a smaller footprint, Main Street and Olive Ave. 10-12 vendors supported the c market through the re-opening & ' Surf City Nights in March 2021. ` SURF CITY MARKET PLACE The Surf City Marketplace was a ' new open-air boutique retail a destination of 4-6 vendors from October - December. The Varketplace was located at the ase of the 3rd block of Main Street •� during its closure adjacent to the ri Post Office. KEEP ON CRUISIN NOV Based on the success of the Rockin Fig o 0 0 2" sT event. the BID collaborated with HBBC.easyrider to produce a safe. family- O �� friendly outdoor event that celebrated cruising culture and the joys of two wheels. While November 14. 2020 was admittedly a challenging date to navigate because of increasing COVID restrictions, the open air activation complied with all health and safety guidelines and was considered a t success. ROCKIN ' FIG °gyro,&, VINTAGE SURF FESTIVAL 'N ' 1K via& i � e � � I l� A ceieorauon or one or aurr t_ity s great personauues. HocKin rig, ana the "local's block" of Main Street, the Rockin Fig Vintage Surf Festival was a block-wide activation that safely brought several hundred people to the 3rd block to enjoy entertainment, exhibits. shopping, and dining on Oct. 17, 2020. The event garnered lots of positive press coverage including the LA Times. OC Register and Spectrum News. All business on the 3rd block participated in the event by offering special and unique activities that demonstrated the creative collaboration businesses embraced during COVID. In 2021. the 2nd Annual Rockin Fig Vintage Surf Festival will be406 incorporated into Surf City Days. Surf City Nights successfully returned to Downtown HS on Tuesday. March 16th _ with a new footprint and reimagined vendor mix At approximately 50 vendors. Wrl the street fair is half the original size in 0C �jJ110D terms of vendors, but occupies the same ET footprint creating a wonderful flow up Main Street from PCH to Orange. The t outdoor dining patios on the 2nd block j entice visitors to linger over dinner and _ the expanded vendor spacing hasIf improved sightlines between vendors and R businesses 7-Surf City Nights has three distinct zones: Surf City Farmers' Market. 'Restaurant Pow' on the 2nd Block of Main Street. and the Surf City Collective which features unique retail and lifestyle merchants that h ` complement the 3rd block businesses. commission structure was added to selected vendor categories which helped increase profitability of the event even at a reduced footprint. Local businesses embraced the return of Surf City Nights The most notable being Avila El Ranchito's introduction of the Mercado Margarita, a weekly flavor inspired by shopping the market . each week. Available only on Tuesday _ nights, the Mercado Margarita often sells out. Another great example of '`- creative collaboration to showcase Downtown HB in a fresh way. 407 SURF CITY MOVIE NIGHTS In partnership with the International Surfing Museum. Surf City Movie Nights is scheduled for Fall of 2021. Through the help of sponsorships. we will be able to bring classic surf cinema to Downtown Huntington Beach. SURF CITY DAYS �', LL Surf City Days were on hiatus in Fall 2020. In October 2021. the event V will return to Main Street and Pier Plaza. Local's favorite. HSS Demo Days, will return to the first block of _ Main Street. The 2nd Annual Rockin Fig Vintage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 Halloween and Miracle on Main Street. were on hiatus in Fall 2020. We are excited bring the spirit of the season back to Downtown in --- 2021. Locals and guests will enjoy the annual Trick or Treating with our businesses and the return of — Miracle on Main Street. 408 \�Q�OYEM£yl o r A HBDBID ANNUAL REPORT a HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT 1L_ 2021 - 2022 HUNTINGTON BEACH ABOUT: ���E��-'�__��.` -l--ter.•-�-�� Ssi..'+-�_/.f'� •fa-�„�„�_� -tom ryw-: Founded in 2004, the HBDBID is a private non-profit 501c6 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 r community and stakeholders. WHAT WE DO _ t-reate a tnnvrng uowntown ousiness -- - - district that delivers on the Surf City 'J - USA brand and attracts a quality clientele year-round. In addition to consumer marketing, events, and member communications, the BID r provides capital services to benefit Downtown in conjunction with the City: Security — Cleanliness -� Signage Beautification 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: i o oe the aavocate voice Tor our coastal downtown community creating economic vitality and the ` premier entertainment destination. VALUES: t-ommunicauon: taucation ana aervice Representative: The advocate voice for all in our community Integrity: Transparency. Honesty, and Respect Strategic Results: Sustainable, ROI Focused. and Efficient Passion: Positivity and Unified in Cause 411 SECURITY AMBASSADORS The Ambassadors Security program through 12'0'27 Protective Services, aka Big Tony. officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. The purpose of the Ambassadors is to establish a rapport and presence with business owners. patrons, and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. VHB and the BID co-fund the Ambassadors. For 2021-2022 VHB will contribute $30.000 and the BID will contribute $40.200 based on current budget allocations. A 4-man team working an 8-hour shift is scheduled Downtown every Friday. Saturday. and Sunday through the weekend of Oct. 3rd to coincide with the Air Show. After that. the Ambassadors will be scheduled as a 3-man team on specific holiday and event weekends through the fall and spring of 2022. HBPD COMMUNICATIONS The BID communicates frequently and works in partnership with HBPD. In June 2021. the BID. VHB. and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. The BID attends HBPD security briefings related to events planned for Downtown. 412 ' MAINTENANCE ft BEAUTIFICATION 77 uowntown "b is a very active aesunation ano requires rrequeni, inorougn cleaning. MCS was awarded the cleaning and maintenance contract after the City distributed a new RFQ in June 2021. The new contract provides increased frequency of power washing along heavily-trafficked areas of Downtown while also expanding the coverage area to reach more businesses. Daily porter service is the second component of the contract. The BID often increases porter staffing over holdiay and event weekend. 413 MAINTENANCE fr BEAUTIFICATION -art 4t•�. St'F Zone 1 Power Washing: On Peak = 2 x week, Off Peak = 1 x week Cl. ✓nq y N CC�. d� EXHIBIT B .,....r.�.,�� Downtown Maintenance �•� '"'�"�"�� 414 AINTENANCE Fr - AUTIFICATION f ' �a Zone 2 Power Washing: On Peak = 2 x month, Off Peak = 1 x month , 1 1 s EXHIBIT C Downtown Maintenance Vw Y; MAINTENANCE ft BEAUTIFICATION ------------ Y. .- .r Zone 3 Power Washing: Monthly Alley and Gutters sk . , u 71 /r � � EXHIBIT D wn.•...oywr crud. Downtown Maintenance �_- Wf va —�• s .. BID MEMBER OVERVIEW AND ZONE ANALYSIS � r 6 ft �t • ~4� 2 4, 7 i cw�u f -f ty.r.. W�� 1 " � aw....... t 2 Ja i t w ...r> �:. 4...w.>•aawrrrV 'r^ � •car S •ou al.w ur b.'�"�4 ! au .li aW �•V f 2 Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones I&2 \L THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . 417 BID ASSESSMENT CHART Assessment Chart Oct. 11 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,SO1 - 4,999 sq. ft. $1,OS3 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - SO rooms $936 $800 S1 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $1SO 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 418 Seasonal, 9 mos or less $500 $300 Of the 162 businesses in Zone 1, 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1 , indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. zone 1 Zone 1 Carts 13 $100 $1,300 Carts 13 51,300 Hotel Hotels 1 $1,404 201 less 21 50 Restaurants 53 $43,173 50• 1 $1,404 $1,404 Retail SO $32,292 8anks 1 5600 $600 Service/Office 44 $9,331 Restaurants Bank 1 %M 53S100 12 54,212 162 $88,100 $70200 18 $12,636 51,053.00 17 $17,901 $1,404.00 6 59.424 1 $3 $43,173 $43.173 ReW $351.00 21 $7,371 a seem $702 00 20 $14,040 w 51,053.00 5 $5,265 110111111 $1,404 00 4 S5,616 t• s�csu ua.a. u r g a/� s laal $0 $32.292 $32.292 r $ervKe Office $28100 11 $3.091 $12000 27 $3.240 $1S0.00 0 s0 S30000 3 $900 S700 00 3 52,100 44 $9,331 $9,331 SM100 419 Of the 99 businesses in Zone 2. 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together, restaurants and retailers generate 68% of BID assessment fees in Zone 2. At 37, Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 Zone 2 Seasonal 6 $300 $1,900 Seasonal 6 $1,800 Hotel Hotels 1 $400 20/less 1 5400 $400 Banks 1 $400 21.50 Restaurants 9 $3,700 50. Retail 45 $12,400 Banks 1 5400 $400 Service/Office 37 54,860 Restaurants 99 $23.560 5200,00 3 $600.00 5400.00 4 51,600 DO n E 7 5600.00 1 5600.00 $900.00 1 $900 00 9 $3,700.00 $3,700 Retail $200.00 33 $6,600.00 S400.00 9 $3.600.00 $600.00 1 $600 00 $800.00 2 $1,60000 4S $12,400.D0 $12,400 Service/Office 5160.00 21 53,360.DO $90.00 14 51,260 DO $120.00 2 5240.00 $150.00 0 S0.00 5350.00 0 s0.00 37 $4,860.00 $4,860 $23,560 420 Outside of Zones 1 and 2, two hotels, the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel, both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory 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. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken. Mahkin (Opening Date July 2021 ), Diane's Bikinis (New Owners), Aloha Grill (New Owners), Haus of Bunnies (Opening 2021 ). Hidden Beauty OC, SMKFLWR 421 ASSESSMENTS As of June 30th, the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021- The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount. OAR .V �NwNwr Ell•wwNW�w� RNl N.ft�w�rt w rwr re ewnrw ,arr..w wN.ww. w r•rrw.r NirNr�N�r.rwr rwNrw rrNrr NN\N� .MYNui L�wY• • •. •.�w. r�wN.NNrwrwwwn •w .r .r..•.ww W NIwIw1�N..i�•Nrp n.we. Mrrw. w..�/.N��.r ��ww.wNM . r.� ww�• (y/y(r .e/r• mr •O\MNIY YN\w wlr. rr.�r.r...ti+Try r��.rwrrw.wr.�rr� wN... � r s ®Zi�N.w r y..S�w uarr• Mt/NYrN rr�rrrr� rnww 'a"""Df�' rrr rww O..ur.rNNrN �.1•�••r yuw NAY�d9�u EIDL LOAN In late October 2020, the BID applied for an EIDL loan, which was awarded in the amount of $150.000 on Dec. 31, 2020. On Jan. 5. 2021 $50,000 was placed in the BID's Main Account for use as operating capital to cover expenses such as rent and staff costs. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19, 2021, the BID began the process of requesting approx. $45,300 in additional EIDL funds. CITY OF HB COVID GRANT On May 24. 2021, the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10,000 on June 14th. The funds will beBlaced in the BID's Main account to use for marketing and operating expenses for the 2021-2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank -Main Acct 1,274.11 1030 First Bank-MM 160,733.80 1040 First Bank- Malco 25,692.16 Total Bank Accounts $187,700.07 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 0.00 Total Other Current Assets $500.00 Total Current Assets $188,200.07 Fixed Assets 1640 Machinery 8 Equipment 11,651.68 1660 Office Equipment 538.74 1670 Computers 1,306.31 1700 Accumulated Depreciation -13,496.73 Total Fixed Assets $0.00 TOTAL ASSETS $188,200.07 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 Long-Term Liabilities 2400 Notes Payable - SBA EIDL 150,000.00 Total Long-Tenn Liabilities $150,000.00 Total Liabilities $148,961.63 Equity 3100 Unrestricted Net Assets 122.544.38 Retained Earnings 0.00 Net Revenue -83,305.94 Total Equity $39,238.44 TOTAL LIABILITIES AND EQUITY $188,200.07 423 Cash Basis Monday,July 12,2021 04:52 PM GMT-07:00 1/1 BUSINESS IMPROVEMENT DISTRICT 2021-2022 Budget INCOME: OCT NOV DEC IAN EES MAP APR MAY ION JUL AUG SEP YEARLY TOTALS CRY of NB Maintenance $19,634.W 511,114GO $11,86400 $11,040.00 $9,6W.W $17,284.00 518,634.W $17.284.00 517,284.00 518.634.GO SIS,IW.W $18.109.00 SISS,430.00 BID Assessments 56,000.00 $8,000.OD SNWOOO SB,WO.W S10,00000 $10,00000 S10,000.00 510,000.00 SIDCOO.W $10,00000 58,ogE 58,000.DO SIO6,WOOD Surf City Nights $15,2OUW 510,M(ED $1D200.00 $10,20000 $10,20OW 512,213000 $15,200.00 520.200.W 520,200.DO SM,20000 $20,20000 $18.200.GO $1112,400.00 Surf City Days 515.000.00 515,00000 Summer Kickoff Evem SIgOaO.W 510,00000 Chili at the Beam $101".GO $10cowGO Smf City Movie Nights 53,50).W S5.000.00 $SWD.W SS,000.W 517,500.W Halloween $5,coccoo $5,00000 City of HB Gram SIO.OW.W 510,000ff Miracle on Man 55,000,00 55,0000 Monthly Totals $)9,11P.M $35!064.00 $30,O64.W $29,240.W 529,g90.00 $39,484.W S43,834,W $4)p84.W $59,984.W $13A34.W $51,3W.W $49,309.00 5,19.330.W $18)W.W EXPENSE: ocT NOV DEC MN FEB MAR APR MAY JUN JUL AUG SEP YEARLYTOTA6 City of HB Malntenanre $17,634.00 $10,864.W $10,864.00 $10,WO.W $8,690.00 $1I,284.GO $17,634.DO 516.7M.W $I6,28400 $17.634.GO $17,109.GO $V,ID3W $176,430,50 Markefing/Adverlising $1,)WW 51.200.00 51.200.00 $1,200.00 51,2W.W 57M.GO 57W.W 57MM $)W.W S7WO0 $)W.W 57WW 51D.900.00 Amhassadoes Security S5,OW.W $1,000.00 53,00000 52,I00.GO $2,100.00 $2,1W.W S),1W.W 52.000.W 55.20000 $5,2W.W $5.2W00 $S,2g000 540,200.00 Office E.,me 51W.W $10000 $IW00 $IWOO SIWW $IW.W 51W.W $IW.W $IW.W $100.00 Steam $1000O 51,200.00 Bank Charges SIMEIG $100.00 SIW.W $IW,W $IW00 510000 SIW.W $10000 S1W.W $100.00 SIW.W $1W00 51.20000 Duet B suhscrip4ons 52%GO $2W.W $250.W 5250.00 5250.W 525000 $250.00 525000 515000 5250.00 5)500o S250.00 53,000.W Inturance SO.W $O.W SOW S600.00 Sow SOW Sow $1,300.00 5000 SD.W SOW SOW SI,90000 Accounting SS10.W 5540.ED $SsO.W 5540OD S850.OR 5I,I0000 SS40W 5540.00 5S10.W $54DO0 $540.W $540.00 $7,3S0.W License B fees S110.W $150.00 SISO.W 515000 $150.W 5150.GO 5150.00 $150.00 S)W.W $200,00 52W.W $200.00 52,000.00 Board of Director Election SO.W so GO so GO $O.W So.W So.W SD.W SOW Sow $O.W Sow 52.000.00 S2,CKDOW Meeting/Trairum, 51WW $LW.W SSD.W SIW.W SIW.W 550.03 S50.00 $SOW S50W 550.00 SSO.W 5SO.W 5800.00 E.ec.or,, $8,333.OD $8,31300 59,333.GO 58,333.00 $8,333.00 S9,3J3.W 58,333.GO Sg,33301D 58,33300 $8,333.00 S8.333.00 SB,IJ).W 51W,000.W Events Manager 55,300.00 55,300 00 55,300 0o $5,300.00 $5,300 00 55.300.00 S5.30100 $51300.00 $5.300.00 $5,30GW 55.300.00 55.300.00 563,6010.00 Payroll E.pemes S75GO 575,00 575.W SOW WOO SOW SO.W SOOD SOW 50.W Sow SOW S225.DO Repairs/Maintenance SAO ED 54OW 54OW 540.00 540GO 540DO 540.W WOO S"O00 540.W SSO.W $WW S5010.00 Rent B Storage 5800.00 SBW.W SBoo.W S8W.Do S800.00 $5,80D.W SSW GO SSWOO SBW00 5000,00 S8WGO $800.0D S14,6W.W Telephone/Internet SI85.W SIBS.W S185.W 5185M S185.M 5185W 518500 $18S.w $185.W 5111500 SIBSW 5 INS.W 52.220.DO EIDL Repayment SOW SOW SOW 58112.011 5852.W 5852.01) 5852.W SM2.00 S852.00 5852.00 S852.00 S852.00 57,668.W BID EVENTS SEEN Rental S Set up $I,WD.W $],OOf1.W 51.00000 $1'"00 $1,000.W $I,000.W 51100000 5I.000.W $1,000.W 51.000.00 $1,000.00 $1,00000 $12,00000 SCN Street Cleaning S500.00 $SW.W $50000 $SW.GO S500.00 SSW GO S500.00 $SW.W 5500.0D SSW.W $500.0D 5SW00 $6,00000 SCN Sheet Closure 55W.W $50000 SSOOW SSW.W SSW.W $500.00 $SOO,W 51W.W $SW.W SSW GO $500.00 5500.00 $6,DWLED SCN Parking 5610(00 50.W SOW $600.010 sow 50W 5600.00 $D.W W.W 5woo SOW SOW $2,400.W SCN Marketing $SW.W 55W.W SSW.W SSW GO $SW.W $50000 5500,00 5500.00 550D.W $SW.W SSW OFF SXp.w $6,000.W SCN Ouick60nks $3W.W 52M.00 5204.00 520400 S201.00 5244 GO 5301.00, $404.GO $404.W 54NDO $40100 $361.GO $3,648.W BID Eyem Misc $833W $633.ED $633.00 5433.00 543300 5633,00 $633.00 $633,00 $833.W Sti $833.W S626.W 57,989.00 Summer Kickoff Even) 510,000.00 51000000 Chill at the Beach $ID.DOO.W $10,00000 Scof City Days $5.OW.W 55.000 W Surf City Movie NiRhfs SI,SW.W SI,SW.W $1,50000 54,500.00 Air Shu.. SOW $O.W Halloween 51000000 $10.ODO.W Muade an Main SIODWOD 51a."W Holida Beautification $20.00 520DOo.W MONTHLY TOTAL$ $49,044.W 582,374.00 $34,324.01) $3 .427.00 $32.111 $44,721.00 $41,171.00 54D,521.00 $52,67I.1) $48,IE1.W $45,OW.W $46)63.00 $549,330.00 VARIANCE:INCOME VS EXPENSE 000 424 SOCIAL MEDIAINSTAGPAM f • Started:July 2020 �r • FollowGrowter333ne 413 • Growth:333 new followers per month • Target 6.000 followers by June 2022. • Relaunched:October 2020 � • Followers. 3.025 • Growth:336 new followers per month • 100%organic growth • Target: 6.000 followers by June 2022 DOWNTOWN,ND YOU KNOW?. COMMUNICATIONS Rebrand the NBDBID to create w.M YS %i „ : clearer identity and increase brand equity BID Blogs and Member Emails like Downtown. Did You Know? and Member Newsletter _"=• Enhanced Website with Sections for Businesses and Visitors and �~ Event Calendar TAKEOUT ALCOHOL POLICY� � • Event Promotions � MEDIA OUTREACH . Vdf:� AN OW IJG�6 • Press Releases 41111Z %& F y • Media Alerts �vw ;& • FAM Tours 1 • Media Event Invitations BREAKING 'VEW45% �yNv� ts�o�fa�lv�• ssao� Surf City Nights successfully returned to Downtown HB on Tuesday. March 16th. 2021 with a new footprint and reimagined vendor mix At approximately 50 vendors, the street fair is half the original size in terms of vendors. but occupies the same 7N-GHTS footprint creating a wonderful flow up Main Street from PCH to Orange The outdoor dining patios on the 2nd block entice visitors to linger over dinner and the expanded vendor spacing has improved sightlines between vendors and businesses. + Surf City Nights has three distinct zones. Surf City Farmers' Market, "Restaurant Row' on the 2nd Block of Main Street. and the Surf City Collective which features unique retail and lifestyle merchants that `fit; 1F complement the 3rd block businesses. U�. A commission structure was added to N�"eEP " selected vendor categories which helped increase profitability of the event even at a reduced footprint Local businesses embraced the return of Surf City Nights. The most notable being Avila's El Ranchito's introduction of the Mercado Margarita. a weekly flavor inspired by shopping the market each week. Available only on Tuesday nights, the Mercado Margarita often sells out: its a great example of creative •` collaboration to showcase Downtown _ HB in a fresh way. SURF CITY MOVIE NIGHTS In partnership with the International Surfing Museum. Surf City Movie Nights is scheduled for Fall of 2021. Through the help of sponsorships, we will be able to bring classic surf cinema to Downtown Huntington Beach. _ SURF CITY } DAYS „ In October 2021. Surf City Days will return to Main Street and Pier Plaza. Local's favorite. HISS Demo Days, will return to the first block of Main Street. The 2nd Annual Rockin Fig Vintage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 The spirit of the season returns Downtown in 2021. Activities are being planned for both nights of Halloween weekend with the traditional trick-or-treating Downtown on the 31st. Enhanced decorations and the return of Miracle on Main Street is planned for Holiday 2021. 427 CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust, but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable, but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name, i.e. Explore Downtown HB, DTHB, or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing, Member Communications. Services, and Programming 428 BOUNDARY MAP r e J' Y 2 • {MU I .n r...4 {4• \�46•{11ly M 'C4 j 0{. {•�{I G ��•M f. [M �41 •�� ��.���''43 r Huntington Beach Downtown Business Improvement District Boundaries and Benefit%ones M2 429 Businesses to be Assessed—FY 2021-2022 Business Name: ZIMBABWE HB GIFTS & ACCESSORIES (CT) SHOREBREAK HOTEL THE IRISHMAN BOLT TOURS PEDEGO H B SALT HAIR LOUNGE ESTHETICS AND LASH EXTENSIONS BY HANNAH ARIA HOOKAH LOUNGE SALT LIFE LLC JACK'S SURFBOARDS CVS/PHARMACY #819 MODERN PARKING INC SMILES CAFE GENTLE DENTAL HUNTINGTON BEACH MAIN STREET CLEANERS BOGGELN & COMPANY CPA E J I DESIGNS STYLING BY STEPH /THE BLONDE ROAST COLOR ME ALLIE DASH OF SASS NAILED IT NAIL BAR MINDFUL LIVING EXPERT ANDE'S PERUVIAN ARTS AND CRAFTS (CT) ANDE'S PERUVIAN ARTS AND CRAFTS (CT) HOT TRENDS SUNGLASSES (CT) THE FUNNEL HOUSE NORTH SHORE POKE CO NO KA OI SANCHO'S TACOS KILLARNEY'S TOP H B NAILS DARE ME BIKINI SMOKERZ LAND 3 SMOKE SHOP ZEPHYR BARBERSHOP CASSANDRA CAPRI HAIR COLDSTONE CREAMERY MIN'S DYNASTY PERMANENT MAKEUP/MD MEDICAL SPA DECO HAIR LOUNGE 7-ELEVEN STORE#2172-34653A BEACHISLAND JAX BICYCLE CENTER SAIL PROPERTIES INC INVESTMENT BUILDERS LLC WAVELENGTHS RECOVERY LLC PERFECTED WEALTH MANAGEMENT KOKOMOS SURF SIDE INDARRA MODERN INDIAN CUISINE MAIN ST BARBERS KENNETH BROWN SALONS HOT TRENDS SUNGLASSES (CT) HOT TRENDS SUNGLASSES (CT) GRATER GRILLED CHEESE CHARLIE'S GYROS ZACKS PIER PLAZA ZACKS TOO DWIGHT'S BEACH CONCESSION 430 SURF CITY STORE BEACH WAVES SKIN REHAB SURF CITY SEGWAY HUNTINGTON SURF AND SPORT MAIN STREET DAY SPA BEAUTY BUNGALOWS BY PORCELAIN PRISTINE MOTORSPORTS VEGWARE PACKAGING INC PARKING CONCEPTS INC THE U P S STORE#4482 ROBINSON LEE TURN-KEY HOMES SPEEDY CREDIT REPAIR INC F H A REVIEW LUNA UNITED PACIFIC SOTHEBY'S INTERNATIONAL REALTY R M A INTERNATIONAL LANDSCAPE ARCHITECTURE & PLAN BREWSTER'S ICE HAUS OF BUNNIES MAHKIN THAI & SUSHI ZERO ZERO PIZZERIA WAHOO'S FISH TACO LONGBOARD RESTAURANT & PUB MANGIAMO GELATO NAUGLES ROCKIN FIGS SURF HEADQUARTERS MAKIN WAVES SALON BARE BUNNY AESTHETICS SOCK HARBOR AMERICAN VINTAGE BASKIN ROBBINS #362100 MODEL CITIZEN SURF CITY CHIROPRACTIC MAILBOX STATION INNOCEAN WORLDWIDE AMERICAS LLC ROBERT KOURY PROPERTIES STUDENT SUPPORT LIVE LP CELLORION (CT) HUNTINGTON SURF INN T K BURGERS RITTER'S STEAM KETTLE COOKING CRABBY'S BOAT HOUSE 2ND FLOOR FAD CRUISERS PIZZA BAR GRILL ALOHA GRILL MAIN STREET OPTICAL & BOUTIQUE THE BLOW DOWN LLC M E HELME HOUSE FURNISHING CO DING DR LLC BOW AND ARROW HAIR LOUNGE LOVELOCKS HAVAIANAS SANDALS EL DON LIQUOR RAY'S RENTALS GALITZEN PROPERTIES A & S ACCOUNTING SOLUTIONS INC H M R ARCHITECTS INNOCEAN WORLDWIDE AMERICAS AMBIT CONSULTING LLC ZIGGYS ON MAIN 431 SESSIONS WEST COAST DELI DAIRY QUEEN HURRICANES BAR & GRILL FRED'S MEXICAN CAFE CUCINA ALESSA HB JACK'S BEACH CONCESSION ROCKY MOUNTAIN CHOCOLATE FACTORY SAKALSURFBOARDS SALON RETRO NEIRA DESIGNS & FIX-IT ETC MONTGOMERY JEWELERS EV RIDEABLES LLC PACIFIC COAST BODY SCULPTING LLC JACKS SURF & SPORT HUNTINGTON BEACH EASY RIDER, DANK CLOTHING F45 TRAINING HUNTINGTON BEACH DOWNTOWN PIERSIDE COMMISSARY LAZ PARKING CALIFORNIA LLC FLYWHEEL WEAVER & ASSOCIATES GRUPO GALLEGOS SOLENA LANDSCAPE EIDO CELLORION (CT) MAIN ST LIQUOR MARKET Just Right Apparel HOT SPOT ZIMBABWE HB GIFTS & ACCESSORIES (CT) TZONE SUSHI ON FIRE THAI WAVE RESTAURANT HUNTINGTON BEACH BEER COMPANY SURF CITY ALE HOUSE LET'S GO FISHING & SURF CITY SNACK BAR LLC SURFBOARD AND BIKE RENTALS MOOD SWINGS HOSTETLER KERI SKINSATIONAL MAIN STREET WINE COMPANY PARLOUR ELEVEN HUNTINGTON SURF & SPORT COASTLINE REAL ESTATE INVESTMENTS LLC CONTINENTAL 1 HOUR CLEANERS INC CDA MARKETING GROUP INC P R TALENT HEADLINER SURF CITY SKATES JAY BIRD'S BEAUTY & THE BEACH STUDIO KUO JESSICA AUTOMATED CASH MANAGEMENT SYSTEMS (ACMS) POSITIVE THOUGHT BRAND (CT4) ZIMBABWE HB GIFTS & ACCESSORIES (CT) PETE'S MEXICAN FOOD ICECREAMTON - SOFTY ICECREAM & HANDCRAFTED CHURROS B J'S RESTAURANT & BREWHOUSE DUKE'S WATERFRONT BEACH CABANA BEE BEE NAILS DANIEL JAFFE DDS LUCY'S TAILORING & ALTERATIONS 432 M C A TRADING LLC HAMLIN GOODING THE ICE CREAM WAY DING TEA JAN'S HEALTH BAR IHOP MAIN STREET HAIR COMPANY SUGAR CABANA CALI SHORE STORE HAVEN OF WELLNESS INC EUROPA NAIL STUDIO THE TRAINING SPOT HUNTINGTON BEACH REALTY HORN HOLISTIC ACUPUNCTURE DIRTY DOG WASH RIO MEDIA INC 221 N MAIN STREET BEACH PROPERTIES LLC GALLAGHERS IRISH PUB RACHEL IVERSEN LAC DIANE'S BIKINIS Healing Cryotherapy BOBASAUR SUGAR SHACK CAFE SHARKEEZ HQ GASTROPUB KITE CONNECTION C/O DAVE SHENKMAN ELEVATE SPA SERVICES SUITE INSPIRATION SURF CITY MARKET PORCELAIN HAIR STUDIO I PORCELAIN HAIR EXTENSIONS 7 ELEVEN STORE#35767B SUNWEST REALTY BRENT O NICHOLS DDS IPA 1031 GROUP LLC TEAM DESIGN & CONSTRUCTION RIPCORD DIGITAL INC W & R STUDIOS BANZAI BOWLS WET DOG TAVERN PERQS NIGHTCLUB & SPORTSBAR COACH'S MEDITERRANEAN GRILL SHABU ON FIRE BODHI TREE VEGAN CAFE ORANGE COUNTY BARBERS PARLOR JOLYN CLOTHING COMPANY RIP CURL SURF CENTER SIGNATURE PRINTING CORREA& ASSOCIATES J & J COASTAL LENDING HOWARD FISCHER DVM A PRO CORP 25DEGREES HIDDEN BEAUTY OC BY SHAUNA NASRI JPG Inc. dba Oak Leaf Productions MILK AND HONEY HB ARMIJO ANTHONY (CT) 602 COFFEE HOUSE STARBUCKS COFFEE COMPANY#575 AVILA'S EL RANCHITO H B DOS TOROS MEXICAN GRILL SANDY'S BEACH SHACK 1 LOOK VINTAGE 433 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 C B INVESTMENTS INC WESTLAND BUSINESS SERVICES INC PACIFIC RIM TAX & ACCOUNTING ATM GLOBAL INCORPORATED JUVE CREATIVE INC GUARANTEED RATE INC BOMBURGER BLUE CHAIR ACCOUNTING 434 BID ASSESSMENT CHART Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $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 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 .35 Seasonal, 9 mos or less $500 $300 CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust. but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable. but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name, i.e. Explore Downtown HB, DTHB. or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing. Member Communications, Services. and Programming 436 Res. No. 2021-56 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 October 5, 2021 by the following vote: AYES: Peterson, Bolton, Delgleize, Carr, Moser, Kalmick NOES: None ABSENT: Posey RECUSE: None City Clerk'and ex-officio Clerk of the City Council of the City of Huntington Beach, California ,E43a t/ CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT RI-NEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the 2021-2022 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on October 5. 2021 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Main Street. Council Chambers, as required by the Parking and Business Improvement Law of 1989 as approved by the City Council in Resolution No. 2021-42 as reprinted below: RESOLUTION NO. 2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY 01" HUNTINGTON BEACH DECLARING THE CITY'S INI'I-NTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2021-2022 WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code §36500 et seq.) found that cities are authorized to levv assessments on businesses in order to promote economic revitalization and tourism. create jobs, attract new businesses and prevent erosion of business districts: and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities: and A sizeable majority of the downtown businesses within the City of Huntington Beach requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; and The City Council formed a business improvement area, known as the Huntington Beach Downtown Business Improvement District(the"District'), by the passage of Ordinance No. 3661 on September 7, 2004. The City is proposing to levy an assessment for fiscal year 2021-2022 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 an "Annual Report" and "Proposed Budget for Fiscal Year 2021-2022" (collectively. "Annual Report '): and NOW. THEREFORE. the City Council of the City of Funtington Beach does hereby resolve as follows: SECTION I. The City Council hereby approves 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 includes a proposed budget for Fiscal Year 2021-2022 and a description of the improvements and activities to be provided for Fiscal Year 2021-2022, SECTION 2. To levy and collect assessments within the District area for Fiscal Year 2021-2022 as per the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference. SECTION 3. The type or types of improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area are specified in Exhibit C, attached hereto and incorporated herein by this reference. further, the improvements, ifany, to be acquired for the proposed business improvement area are specified in Exhibit C. SECTION 4. A public hearing shall be held before the City Council on October 5. 2021. at 6:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers of the City Hall. 2000 Main Street, Huntington Beach, California. at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing: but. if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. The City Council may waive any irregularity in the form or content of any written protest, and at the public hearing, may correct minor defects in the proceedings. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of'intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Fluntington Beach City Hall, 2000 Main Street. Huntington Beach. California 92648: telephone(714) 536-5592: or from the Huntington Beach Downtown Business Improvement District, 315 3`° Street, Suite F. Huntington Beach. CA 92648, (714) 536-8300. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION 8. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the T" day of September, 2021. Copies of the exhibits referenced above are available in the office of the City Clerk or upon request by calling the Community Enhancement Division at (714) 5 ) - 5582 or through the City's website at http://huntinLtonbeachca.aov/sovemment/a�tendas/. Publish: September 23. 2021 Switzer, Donna From: Christine Gonzalez <cgonzales@scng.com> Sent: Tuesday, September 14, 2021 2:06 PM To: Switzer, Donna Subject: Re: PH Notice - Downtown BID - October S 2021 Attachments: 11488505.pdf Cost $730.00. pub 9/23 HB Wave OC Register Legal Advertising Chrissy Gonzalez 1771 S. Lewis St. Anaheim, CA 92805 714-796-67 M-F 8:00 a.m. - 4:30 p.m. Lunch 12 Noon to 1:00 p.m. Closed Sat. and Sun. On Tue, Sep 14, 2021 at 1:03 PM Switzer, Donna<Donna.Switzeraa,surfcity-hb.or¢> wrote: Hi Chrissy, Please publish the attached PH Notice, in The Wave, on September 23, 2021. Thank you. Donvuvswitw' CMC Senior Deputy City Clerk-City of Huntington Beach 2000 Main Street- Huntington Beach,CA 92648 (714)374-1649 1 CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT RENEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the 2021- 2022 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on October 5,2021 a16:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street,Council Chambers,as required by the Parking and Business Improvement Law of 1989 as approved by the City Council in Resolution No. 2021-42 as reprinted below: RESOLUTION NO.2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2021-2022 WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989(Streets and Highways Code§36500 et seq.) found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create lobs, attract new businesses and Prevent erosion of business districts; and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities;and A sizeable maiority of the downtown businesses within the City of Huntington Beach requested that the City Council commence Proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; and The City Council formed a business improvement area,known as the Huntington Beach Downtown Business Improvement District (the "District"), by the Passage of Ordinance No.3661 on September 7,2004. The City is Proposing to levy an assessment for fiscal year 2021-2022 Pursuant to the Process detailed in Streets and Highways Code§36500,et sea.; and The District's Advisory Board has Prepared and filed with the City Clerk an "Annual Report"and "Proposed Budget for Fiscal Year 2021.2022" (collectively, "Annual Report"); and NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1, The City Council hereby approves 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 includes a Proposed budget for Fiscal Year 2021.2022 and a description of the improvements and activities to be Provided for Fiscal Year 2021-2022. SECTION 2. To levy and collect assessments within the District area for Fiscal Year 2021-2022 as Per the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference. SECTION 3. The type or types of improvements and activities Proposed to be funded by the levy of assessments on businesses within the business improvement area are specified in Exhibit C,attached hereto and incorporated herein by this reference. Further, the improvements, if any, to be acquired for the proposed business improvement area are specified in Exhibit C. SECTION 4. A Public hearing shall be held before the City Council on October 5,2021, at 6:00 p.m.,or as soon thereafter as this matter may be heard, in the Council Chambers of the City Hall,2000 Main Street, Huntington Beach,California,at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the Particular protest. Any Protest Pertaining to the regularity or sufficiency of the Proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the obiection is made. The City Council may waive any irregularity in the form or content of any written protest,and at the public hearing, may correct minor defects in the Proceedings. A written Protest may be Withdrawn in writing at any time before the conclusion of the Public hearing set forth above. If written protests are received by the owners of businesses within the District, which will Pay 50% or more of the total assessments to be levied, no further Proceedings to levy the proposed assessment shall be taken for a Period of one year from the date of the finding of a majority protest by the City Council. If the maiority Protest is only against the furnishing of a specified type or types of improvements or activity within the District,those types of improvements or activities shall be eliminated. SECTION S. The City Clerk is hereby directed to Provide notice of the Public hearing by causing this resolution of intention to be Published once in a newspaper of general circulation at least seven days before the Public hearing. SECTION 6. Further information regarding the Proposed business improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536.5582; or from the Huntington Beach Downtown Business Improvement District,315 3rd Street, Suite E. Huntington Beach, CA 92648, (714) 536.8300. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION 8. This resolution shall takeeffect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 71h day of September,2021. Copies of the exhibits referenced above are available in the office of the City Clerk or upon request by calling thg Community Enhancement Division at (714) 536-5582 or through the City's website at' . Published: September 23,2021 Huntington Beach Wove 11498505 Huntington Beach Wave 1771 S. Lewis Street Anaheim, CA 92805 714-796-2209 5196687 HUNTINGTON BEACH, CITY OF- PLANNING & PROOF OF PUBLICATION BUILDING 2000 MAIN ST Legal No. 0011488505 ISELA SIORDIA HUNTINGTON BEACH, CA 92648 FILE NO. RESOLUTION NO. 2021-42 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA, SS. County of Orange I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the Huntington Beach Wave, a newspaper that has been adjudged to be a newspaper of general circulation by the Superior Court of the County of Orange, State of California, on July 1, 1998, Case No. A-185906 in and for the City of Huntington Beach, County of Orange, State of California; that the notice, of which the annexed is a true printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to wit: 09/23/2021 1 certify(or declare) under the penalty of perjury under the laws of the State of California that the foregoing is true and correct: Executed at Anaheim, Orange County, California, on Date: September 23, 2021, c1U7'� Signature cv�amvia 1 CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT RENEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold a Public Hearing on the 2021- 2024 renewol of the Huntington Beach Downtown Business Improvement District at Its meeting scheduled on October 5.2021 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street, Council Chambers as required by the Parking and Business Improvement Low of 1989 as approved by the City Council In Resolution No. 2021-42 as reprinted below: RESOLUTION NO.2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2021.2022 WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS. the California Legislature, in adopting the Parking and Business Improvement Area Low of 1989(Streets and Highways Code 836500 et seq.) found that cities are authorized to levy assessments on businesses In order to Promote economic revitolizotion and tourism, create jobs, attract new businesses and Prevent erosion of business districts;and The California Legislature found that cities ore authorized to levy assessments on businesses which benefit from those improvements and activities;and A sizeable majority of the Downtown businesses within the City of Huntington Beach requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to Promote tourism and tourist related events; and The City Council formed a business improvement area,known as the Huntington Beach Downtown Business Improvement District (the "District"). by the passage of Ordinance No. 3661 on September 7, 2004. The City is Proposing to levy an assessment for fiscal year 2021-2022 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 an "Annual Report"and "Proposed Budget for Fiscal Year 2021-2022" (collectively. "Annual Report"); and NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION- 1. The City Council hereby approves 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 includes a proposed budget for Fiscal Year 2021-2022 and a description of the improvements and activities to be provided for Fiscal Year 2021.2lin. SECT.ION.2. To levy and collect assessments within the District area for Fiscal Year 2021-2022 as per the assessment schedule listed in Exhibit B attached hereto and Incorporated herein by this reference. SECTION 3, The type or types of Improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area are specified in Exhibit C,attached hereto and incorporated herein by this reference. Further. the Improvements if any, to be acquired for the proposed business improvement area are specified In Exhibit C . SECTION 4. A public hearing shall be held before the City Council on October 5,2021, at 6:00 P.m., or as soon thereafter as this matter may be heard. In the Council Chambers of the City Hall,2000 Main Street, Huntington Beach, California. at which time the Council will hear all Interested Persons for or against levying of the assessment, and the furnishing of s Pecified types of improvements or mtIvities. Protests may be mode orally or in writing; but. it written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the Particulor Protest. Any Protest Pertaining to the regularity or sufficiency of the proceedings shall be in writing and stall clearly set forth the irreeq9ulority or defect to which the objection Is made. The City Council may waive any Irregulalliu in the form or content of any written Protest.and at the Public hearing, mov correct minor defects in the proceedings. A written Protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above. If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied no further proceedings to levy the pro assessment stall be taken for a period of one year from the date of the finding of a ma orlty protest by the City Council. If the majority protest Is only against the fumishin99 of a specified type or types of improvements or activity within the District,those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to Provide notice of the Public hearing DYY causing this resolution of intention to be published axe in a newspaper of general circulatlon at least seven days before the Public hearing. SECTION6, Further Information regarding the Proposed business Improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5582, or from the Huntington Beach Downtown Business Improvement District, MS 3rd Street, Suite E, Huntington each, CA 92648, (714) 536.8300. SECTION 7. The City Clerk stall mall a complete copy of this resolution of intention by first-cion mail to each business owner In this area within seven days after the Council's adoption of this resolution. SECTION8. This resolution shall take effect immediately upon adoption. aeia uivie 2 rnaxu rwu +. r i eu uy uc uir �wiau m uw mat a1 naamyiw1 Oaalll w u regular meeting thereof held On the 71h day Of September,202). Copies of the exhibits referenced above are available In the office of the City Clerk or upon reaueST by calling th Community Enhancement Oivisipn Ot (714) 53b5582 Or through the Citv'swebsite at hirP:/ untingtonbeachca.gov/gavernmeni/ogeday Published: September 23.2021 Huntington Beach Wave 11488505 wiiaivw 3 t City of Huntington Beach Public Hearing 1 _ October 5, 2021 FY 2021 -2022 DOWNTOWN HUNTINGTON BEACH BUSINESS IMPROVEMENT DISTRICT (BID) RENEWAL Downtown BID Established in 2004 Comprised of approx 260 businesses » Restaurant and retail represent 60% of membership and contribute 82% of assessments '.. Mission is to improve the i 9 economic business environment of downtown HB related to marketing. safety maintenance. tourism. parking. and special events Annual Assessment Resolution of Intention to Levy Annual Assessment Adopted September 7th 0 Published in HB Wave on Sept 23rd City mailing to all BID members on September 10th Public hearing information Annual Report and proposed assessment details Instructions on how to protest assessment 2020-2021 Accomplishments Enhanced safety and maintenance services �s Increased social media exposure r, to help promote the downtown area * wA and its businesses , Return of Surf City Nights and partnered on local campaigns � � (Main Street Closure. OneHB �R Clean & Safe Pledge. 12 Blocks of Cheer. and Show your HB Love) s 2021 -2022 Goals Improve safety and maintenance operations as well as pedestrian- friendliness ` Increase foot traffic and consumer spending with Surf City Nights and the return of successful holiday events and new off-peak events F + i . Improve membership services through marketing. communications. and i programming Expanded social media engagements and redesign of website Proposed Budget INCOME • Surf City Nights •0 BID Member Assessments •. 000 Other Events S62.500 Grant Funds 000 TOTAL • Proposed Expenses EXPENSES Maintenance $176,430 Staff Support Surf City Nights 0• TOTALMarketing and Events $88,389 Ambassador Program $4U00 i Public Hearing Receive and consider any protests against the assessment Affected business owners may submit protests Confirm if protests equal less than 50% of total proposed assessment value If lack of majority protest exists. Council can renew assessment for one year • • � City of Huntington Beach Public Hearing � _ October 5, 2021 FY 2021 -2022 DOWNTOWN HUNTINGTON BEACH BUSINESS IMPROVEMENT DISTRICT (BID) RENEWAL 49t,1110VED 7 / .yniAra :5`L-0 City of Huntington Beach File #: 21-557 MEETING DATE: 917/2021 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Oliver Chi, City Manager PREPARED BY: Ursula Luna-Reynosa, Director of Community Development Subject: Approve Huntington Beach Downtown Business Improvement District (HBDBID) Annual Report and Proposed Budget for Fiscal Year (FY) 2021-2022, and Adopt Resolution No. 2021- 42 declaring the City's intention to levy an annual assessment for FY 2021-2022 at a public hearing scheduled for October 5, 2021 Statement of Issue: In September 2004, the City Council approved Ordinance No. 3661, establishing the Huntington Beach Downtown Business Improvement District as a method of marketing the Downtown area. The State of California Parking and Business Improvement Law of 1989 requires the City Council to approve an annual report each fiscal year, and adopt a Resolution of Intention to levy an assessment for the next fiscal year at a scheduled public hearing. Financial Impact: There is no fiscal impact to the General Fund. Revenues and expenses are included in the FY 2021- 2022 Huntington Beach Business Improvement District budget (710). The expenditures are only reimbursed based upon revenue collected. Recommended Action: A) Approve Huntington Beach Downtown Business Improvement District Annual Report and Proposed Budget for FY 2021-2022; and, B) Adopt Resolution No. 2021-42, "A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment for Fiscal Year 2021-2022 Within the Huntington Beach Downtown Business Improvement District," which sets a public hearing for October 5, 2021; and, C) Authorize the City Manager to sign all necessary documents. Alternative Action(s): Do not approve the Annual Report and do not adopt the Resolution. City of Huntington Beach Page 1 of 6 Printed on 9,1/2021 ..-a 66 Le-V 1� File #: 21-557 MEETING DATE: 9/7/2021 Analysis: Background In September 2004, the City Council approved Ordinance No. 3661 , establishing the Huntington Beach Downtown Business Improvement District (the "District") to fund promotional activities benefiting all businesses within the boundary area. In addition, pursuant to State Law, the City Council appointed an Advisory Board for the District. The purpose of the Advisory Board is to make recommendations to the City Council regarding the expenditure of revenues derived from the assessments, the classifications of businesses, and the method of levying the assessments. The Advisory Board's recommendations are then considered by the City Council at a noticed public meeting and approved or modified by the City Council. In 2008, the City Council adopted Ordinance No. 3797. amending Ordinance No. 3661, to change how the Advisory Board was selected and subsequently approved Resolution No. 2008-04 appointing a non-profit corporation known as the Huntington Beach Downtown Business Improvement District (HBDBID) to act as the Advisory Board for the District. The HBDBID is a private, 501c(6) business- based organization focused on creating a thriving downtown by providing consumer marketing, events, security, cleanliness, beautification, and member engagement. Annual Report and Proposed Budget While the economy is still adjusting from the COVID-19 pandemic, downtown remains well-positioned for recovery and local businesses continue to rebound from the adverse impact caused by loss of tourism and business conventions, cancelation of weekly and signature events, and periodic disruption from civil unrest. During the past year, various businesses were required to close temporarily or alter their business model, and several popular events were put on hold. Despite these challenges, the nearby beach remained a local and regional destination, with diners patronizing expanded outdoor dining areas and business owners pivoting operations to attract new sales. In light of the pandemic, the HBDBID has taken steps to improve operations and develop programs and events that support downtown businesses. Although assessments collected were less than projected and Surf City Nights, a major revenue generator, was canceled throughout most of FY 2020-2021 , the HBDBID was awarded COVID-19 related stimulus funding which helped to offset the decline in revenue. The HBDBID has regular contact with businesses and actively identifies ways to stimulate commercial activity in partnership with the City, Visit Huntington Beach (VHB), and the Chamber of Commerce. Improved marketing efforts have helped to promote the downtown area and include the increase of social media exposure via Facebook and Instagram, and partnerships on local campaigns such as the OneHB Clean & Safe Pledge, 12 Blocks of Cheer, and Show your HB Love. For additional information, a copy of the FY 2020-2021 Annual Report is attached which provides an overview of the past year. Other notable achievements include enhancements to safety and cleanliness with the re-introduction of the Ambassadors Security Program and a re-evaluation of maintenance services. The Ambassadors Security Program has played an instrumental role in the safety of downtown and will continue, in partnership with VHB, to work with business owners, patrons, residents, and the City's City of Huntington Beach Page 2 of 6 Printed on 9/1/2021 oowerec56 Legisarl- File #: 21-557 MEETING DATE: 9/7/2021 Police Department to address safety-related issues by observing and reporting situations concerning the well-being and safety within downtown. Maintenance operations, with funds administered through the City's Public Works Department for the maintenance agreement, saw an increase in takeout trash which prompted a re-evaluation of power washing and daily porter services. The City and the HBDBID recently collaborated on a Request for Qualifications with the objective of expanding the footprint of cleaning services while also focusing on the most heavily trafficked areas. Looking ahead, the FY 2021-2022 Annual Report outlines opportunities that will be explored to provide a cleaner, safer, and more pedestrian-friendly downtown by incorporating lessons learned from COVID-19. In addition to enhanced maintenance and safety measures, other efforts to increase economic vitality include rebranding, new off-peak events, expanded social media engagements, redesign of the website, and improved membership services through marketing, communications, and programming. The return of successful holiday events such as Halloween and Miracle on Main Street and new events like Surf City Movie Nights will help to increase foot traffic and consumer spending throughout downtown. Integrating the annual business license and the BID assessment fees into one invoice will also assist with monthly revenue collections. In 2017, a revised Reserves Operating Policy established guidelines for how resources can be used to benefit downtown businesses and included a suggestion to maintain one year of operating expenses. As of June 30, 2021, there is a reserve of $160,733.80 (reflected on the Statement of Financials in the Annual Report) which includes $100,000 in Economic Injury Disaster Loan (EIDL) funds which helped compensate revenue losses associated with COVID-19. The HBDBID received a total of 5150,000 un EIDL funds and the remaining $50,000 was used to cover operating costs this past year. The proposed FY 2021-2022 budget will increase slightly from the previous year from S538,930 to 5549,330 due to increased revenue from new and returning events and grant funding. While projected annual BID assessment revenue is only 19% of the total budget, recurring event revenue from Surf City Nights continues to be robust at 33% of the budget, even with a reduction in vendors resulting from the expansion of outdoor dining. Assessments are expected to be less than anticipated based on prior year receipts. Changes to expenses can be attributed to marketing and events, repayment of the EIDL, and other minor program modifications. The proposed budget for FY 2021-2022 is summarized below, and includes variances from last year's approved budget, as well as the operations and revenues of Surf City Nights and the maintenance agreement, which previously operated under its own budget. INCOA'IE: FY 2020-2021 FY 2021-2022 VARIANCE, :APPROVED BUDGET) PROPOSED) City oft-113Maintenance S1SS.430 "188,430 0 131D Assessments "124.000 3106,000 518,000) Surf City Nights "152.500 182,400 "29,900 SUrf City Days "0 S15.000 "I5,000 SummerKickol'I'Event "0 "10.000 10.000 Chili at the Beach "25,000 r IO.000 S15,000) City of Huntington Beach Page 3 of 6 Printed on 9/1/2021 powerec57/Lemstar'" File #: 21-557 MEETING DATE: 9/7/2021 SurfCity Nlovic Niehts s0 S17,500 317,500 Families Forward Program S11.000 s0 S I I mo) Main St. Outdoor Program S3,000 s0 S3,000) Halloween '0 '5,000 '5.000 Citv of H13 Grant s0 '10.000 310,000 Miracle on Main ,5,000 '5,000 '0 Transfer from Reserves 30,000 ,0 530.000) TOTAL IA'COd1E: 538,930 S549,330 10.400 EXPENSES: Maintenance $176.430 S 176A30 30 Ylarketine/Advertising '16,500 310,900 S5,600) Ambassador '36.000 S40,200 34,200 Office Expenses S3,000 31.200 Sl,SOU) Bank Charles S1.200 31.200 "0 Dues & Subscriptions "3,000 33,000 "0 Insurance S1.900 31,900 "0 ACCOU11611- 36.950 37,350 S400 License R Fees 32.000 "2.000 '0 Repairs LC Nlaintenance S500 S500 "0 Rent & Storage 314.900 S 14,600 5300) Telephone/Internet "2,200 S2,220 320 Nleetine/Traiitine r1,650 "800 SS50) Board of Directors Election ,0 S 000 ,2.000 I-IDL. Repayment '0 S7.665 '7.668 PAYROLL: Executive Director S100,000 S100,000 "0 Events Coordinator/Mmur. S48,000 363.600 ,15.600 Admin. Asst. 315.600 "0 S15,600) Payroll Taxes 32,000 "0 S27000) Workers Comp. S1,2>0 "0 S1,250) Payroll Expenses -1.700 225 S1.475) Security 0 '0 '0 1311) EVENTS: SCN Rental & Set-up S22.500 S12,000 S10,500) SCN Street Cleaning S2,400 S6.000 "3.600 SCN Closure S3.700 "6.000 S2.300 SCN Parkin_ S6,900 S2.400 S4.500) SCN Miscellaneous S4.500 36.000 31.500 SCN Quickbooks r9,000 :3.648 55,352) 1311) Event Misc. ,0 '7.959 7,989 Summer Kickoff Event "0 '10.000 '10.000 City of Huntington Beach Page 4 of 6 Printed on 9/1/2021 oowerec58 Legis:ar° File #: 21-557 MEETING DATE: 9/7/2021 Chili at the l3cach '15,000 '10,000 S5.000) Surl'City Days 30 "5,000 35.000 Surf City Movie Niehts "0 S4.500 '4.500 Air Show '0 s0 "0 Halloween 35,150 '10,000 34,550 Miracle oniNlain -10.000 Imo0 0 Holiday Beautification "25,000 S2U00 S5,000) TOTAL EXPENSES: S538,930 S549,330 S10,400 CASHRESERVES S150,706.89 S160,733.80 S10.026.91 District Renewal The City Council is asked to approve the FY 2021-2022 Annual Report and Proposed Budget, adopt a Resolution declaring the City's intent to levy an annual assessment for FY 2021-2022, and schedule a duly noticed public hearing for October 5, 2021. Funding recommendations to the City Council are made by a ten (10) member (nine voting members, one non-voting member) Advisory Board, which is elected annually by assessed members. State law requires that improvements and activities funded by assessments benefit businesses located within the District. Downtown businesses are assessed based on their size, location, and business type. Assessments range from $40 to $1 ,404 per annum. For FY 2021-2022, there are no changes to the boundary map or the assessment formula (Exhibit B) which was last amended in FY 2018-2019. As required by State law, a protest hearing must be held to provide the opportunity for those businesses affected to voice their protest or submit their protest in writing. The Resolution of Intention sets this public protest hearing for October 5, 2021 . At that time, the City Council will tally the percentage of assessments protested and will hear additional public comments on the renewal of the District. The City Council also has the option of reducing assessments or modifying the boundary area if public comments prompt adjustments. If written protests are received from affected businesses owners totaling 50% or more of assessment value, no further proceedings to continue the District can be considered for a period of one (1) year. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(4), government fiscal activities that do not result in a physical change in the environment and do not commit the lead agency to any specific project, do not constitute a project. Therefore, these activities are exempt in accordance with CEQA Guidelines Section 15060(c)(3). Strategic Plan Goal: Economic Development & Housing Attachment(s): 1. Resolution No. 2021-42, A Resolution of the City Council of the City of Huntington Beach declaring the City's Intention to Levy an Annual Assessment for FY 2021-22 within the Huntington City of Huntington Beach Page 5 of 6 Printed on 9/1/2021 ooverec559 Leoa;ar"' File #: 21-557 MEETING DATE: 9/7/2021 Beach Downtown Business Improvement District 2. Exhibit A - Huntington Beach Downtown Business Improvement District Annual Reports for FY 2020-21 and FY 2021-22, and Proposed Budget for FY 2021-2022 3. Exhibit B - Boundary Map, List of businesses to be assessed for FY 2021-2022, and Assessment Schedule for FY 2021-2022 4. Exhibit C - Types of improvements and activities proposed to be funded City of Huntington Beach Page 6 of 6 Primed on 91112021 oowerec60 Lepisiar° RESOLUTION NO. 2021-42 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY .AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2021-2022 WITHIN THE f-iUNTINGTON BEACH DOWNTOWN BUSINESS INIPROVF_NIENT DISTRICT WHEREAS, the California Legislature, in adopting the Parking and Business Improvement Area Law of 1959 (Streets and Highways Code §36500 et seq.) found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create jobs, attract new businesses and prevent erosion of business districts; and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities; and A sizeable majority of the downtown businesses within the City of Huntington Beach requested that the City Council commence proceedings tinder the Parking and Business Improvement Area Law of 1959 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; and The City Council formed a business improvement area, known as the Huntington Beach Downtown Business Improvement District (the "District`), by the passage of Ordinance No. 3661 on September 7. 2004. The City is proposing to levy an assessment for fiscal year 2021-2022 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 an "Annual Report" and "Proposed Budget for Fiscal Year 2021-2022" (collectively, "Annual Report"); and NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The City Council hereby approves 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 includes a proposed budget for Fiscal Year 2021-2022, describing the improvements and activities to be provided. SECTION 2. To levy and collect assessments within the District area for Fiscal Year 2021-2022 as per the assessment schedule listed in Exhibit 13 attached hereto and incorporated herein by this reference. SECTION 3. The type or types of improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area 21-9994/261692 1 Resolution No. 2021-42 are specified in Exhibit C, attached hereto and incorporated herein by this reference. Further, the improvements, if any, to be acquired for the proposed business improvement area are specified in Exhibit C. SECTION 4. A public hearing shall be held before the City Council on October 5, 2021, at 6:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers of the City Hall, 2000 Nlain Street, Huntington Beach, California, at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made. The City Council may waive any irregularity in the form or content of any written protest, and at the public hearing, may correct minor defects in the proceedings. A written protest may be withdrawn in writing at anv time before the conclusion of the public hearing set forth above. If written protests are received by the owners of businesses within the District; which will pay 50% or more of' the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the CitN Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Flail, 2000 D4ain Street, Huntington Beach, California 92648; telephone (714) 536-5582; or from the Huntington Beach Downtown Business Improvement District, 315 3`d Street, Suite E, Huntington Beach, CA 92648; (714) 536-8300. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION S. This resolution shall take effect immediately upon adoption. 21-9994/261692 1 Resolution No. 2021-42 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 7 th day of S mber 2021. 0 Mayor R ED: APPROVED AS TO FORM: City Manager =;yCity Attorney 21-9994/261692 3 Resolution No. 2021-42 Exhibit "A" 0Dwn1Dwn .+ s. HBDBID ANNUAL REPORT HUNTINGTON BEACH j . DOWNTOWN BUSINESS IMPROVEMENT ie :7 s � AIM DISTRICT 2020 - 2021 ALONE, WE CAN DO SO - _. LITTLE; TOGETHER, WE r� CAN DO SO MUCH HUNTINGTON BEACH HELEN KELLER EXECUTIVE BOARD: President: Dave Shenkman. The Kite Connection Vice President: Stuart Goldberg, INNOCEAN USA Secretary: Kelly Miller. Visit Huntington Beach Treasurer: Mike Williams. The Longboard Restaurant & Pub s DIRECTORS: Danny Othman. 602 Coffee Janice Tugaoen. Kimpton Shorebreak I Resort Jim Hall. Surf City Ale House Mary Eikenbary, Sandy Beach Shack Sandra Schulz-Taylor. Model Citizen STAFF: Executive Director Sarah Kruer Marketing Manager: Jaime Strong Office Admin: Jaime Strong .T ABOUT: Founded in 2004, the HBDBID is a f-_� —ft wa private non-profit 501c6 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. j t f WHAT WE DOS_ f Create a thriving Downtown business district that delivers on the Surf City —f1 USA brand and attracts a quality clientele year-round. In addition to consumer marketing- events. and member communications. the BID - provides capital services to benefit -=r==fir Downtown in conjunction with the City: s Security Cleanliness _ Signage Beautification �` _ 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 voice 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 Integrity: Transparency. Honesty. and Respect Strategic Results: Sustainable, POI Focused. and Efficient Passion: Positivity and Unified in Cause w�j47��I416441nl oil 140 If UI1�11��1� y If Ir r� The Huntington Beach Downtown Business Improvement District exists to contribute to the continued economic growth of Downtown Huntington Beach. as well as the quality of the overall experience for both visitors and locals. These objectives are achieved through a combination of stakeholder communications. business and civic collaboration, positive marketing and promotions. event programming. safety. cleanliness and member engagement. The challenges brought on by COVID-19 continued through the end of 2020. spiking with an increase in cases and a second stay-at-home order during the holidays. Dining. previously limited to outdoor, was restricted to takeout only. Retail occupancy shrunk to 20%. posing a steep challenge during December Offices continued with remote work plans for their employees. Rallies continued periodically at Pier Plaza. causing further disruption to businesses Despite all these factors. 2021 dawned with a sense of resilience and optimism as cases began to decline and restrictions were slowly lifted Gorgeous weather compelled locals and regional visitors to enjoy Surf City 10 miles of coastline. biking and jogging paths Outdoor dining patios were full (as were the adjacent trash cans) as local residents patronized Downtown's vibrant retail and restaurant scene. Savvy operators had continued to pivot throughout the preceding months and many (though not all) found themselves well-positioned for recovery with an ample number of economic programs including EIDL and PPP loans providing essential support. While vacancies plagued other destinations. Downtown HB was fortunate to have very few businesses close during the pandemic. Overall BID membership declined from 272 to 263 between 2020 and 2021. However. Downtown has seen a positive trend towards new businesses entering the district including restaurants like Jay Bird's and Mahkin and retail like SMKFLWR. Surf City Nights returned with great fanfare on March 16, 2021 and has continued to safely attract hundreds of visitors Downtown every Tuesday night. Looking ahead. there are significant opportunities to transform the positive lessons from COVID into lasting aspects of the Downtown experience including an emphasis on cleanliness and safety. an increase in outdoor dining and pedestrian areas. attracting locals and families throughout the year with signature events, and consistently providing an authentic. quality Surf City USA experience to visitors in collaboration with the hotels. SECURITY - _ AMBASSADORS The Ambassadors Security program through 12"0"27 Protective Services, aka Big Tony, officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. VHB and the BID continue to fund the Ambassadors though adjustments were made to accommodate reduced budgets including a 3-man team instead of the recommended 4-man team through the fall of 2020 and spring of 2021. A 4-man team will return Downtown every Friday. Saturday. and Sunday in 8-hour shifts from July 1st through the first weekend of October. After that they are projected to be on duty two weekends per month based on budgetary constraints. The purpose of the Ambassadors is to establish a rapport and presence with business owners. patrons. and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. HBPD COMMUNICATIONS The BID appreciates a positive. collaborative relationship with the HBPD. Challenges associated with COVID and weekend rallies only served to increase the value of open. direct communication between organizations to ensure the safety of Downtown HB. In June 2021. the BID. VHB. and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. MAINTENANCE & BEAUTIFICATION . li 6r. COVID placed a spotlight on the importance of cleanliness. Power washing and daily porter service are essential to the maintenance of Downtown HB. which is a very active destination throughout the year. MALCO continued to do an excellent job providing power washing and porter services during the pandemic. During the mandate for restaurant takeout-only during the winter of COVID made trash collection and frequency even more vital to Downtown HB. While January is typically an off-peak month. mild weather and a dramatic increase in takeout trash prompted the BID and the City of HB to re-evaluate trash collection services. quickly shifting back to an on-peak collection schedule months ahead of time. The BID and the City of HB collaborated on a new RFQ for power washing and porter services in May with the goal of awarding a new contract by August 2021. The objective of the RFQ is to expand the footprint of cleaning services across a larger space while also strategically increasing power washing in the most heavily trafficked areas. �TOURISM - . _-NulTOE BEACH �~ " i ounsrn plays a Key role In r-iunungion ream s current ana long-terra economic prosperity and helps generate more business opportunities for Downtown. The decline in travel due to COVID-19 devastated the U.S. economy with a shocking impact of nearly $500 billion lost in travel spending - a decrease of 36% domestically and 79% internationally since the beginning of March 2020'. To encourage support for local HB businesses. the Downtown BID partnered with Visit Huntington Beach on local campaigns throughout 2020-2021 such as the OneHB Clean & Safe Pledge. -Masks Up. Surf City." 12 Blocks of Cheer and Show Your HB Love. As the vaccination rollout continues and infection rates are falling, Huntington Beach is well positioned to welcome visitors safely and has seen significant improvements in occupancy rates with weekends approaching pre- pandemic levels. The return of Huntington Beach's signature events and reopening of Southern California theme parks and attractions has brought strong visitation numbers to the destination. With travel momentum building and pent-up demand generating bookings. Visit Huntington Beach will continue to market and sell the Surf City USA brand experience to extend the length of overnight stays, rebuild workforce and increase visitor spending. ' SOUrCe US Travel Assoaat,on BID MEMBER OVERVIEW AND ZONE ANALYSIS or a i ur... J .._n... .0 fir.. w�rwrn ^•' ! ;cry .4 t 'twPP � 2 •�♦ O }/ Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones 1&2 THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . RIr-I ASSESS ANT C14ART Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - 50 rooms $936 $800 S1 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $1S0 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 Of the 162 businesses in Zone 1. 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1. indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. zone 1 Zone 1 Carts 13 $100 S1,100 Carts 13 $1,300 Rota Hotels 1 51,404 201 less Restaurants 53 $43,173 21-SO so. 1 $1.40e $2,4111e Retail 50 $32,292 ea,,ls 1 $600 S600 Service/Office 44 $9,331 Reslawants Bank 1 $600 $351 00 12 5e,212 162 $98,100 $702 00 IR $12.636 $1.05300 17 $17.901 SIAN 00 6 $9,424 ZONE 1 S3 $43,173 $43,173 mew +� e� 5351.00 21 $7.371 ser 570200 20 $14.040 JIM $1.0s3.00 S SS.26S s 51404 00 a S5.616 r altar slt,rr Y 1• ism s0 $32.292 S32,Mz are w.� eerwa eer freer er Semcd Office w S281.00 11 S3091 $120.00 27 $3,240 51s000 0 $o S300.00 3 $900 $700.00 3 S2.100 N $9,331 sear Of the 99 businesses in Zone 2, 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together, restaurants and retailers generate 68% of BID assessment fees in Zone 2. At 37, Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 Zone 2 Seasonal 6 $300 $1,800 Seasonal 6 $1,800 Motel Motels 1 $400 20/less 1 $400 $400 Banks 1 5400 21-50 Restaurants 9 $3,700 50• Retail 45 $12,400 Banks 1 5400 $400 Sencce/Office 37 S4.860 Restaurants 99 523,560 5200.00 3 560000 $400 00 4 $1,600 00 ZONE 2 $600 00 1 $600 00 S900 00 1 590000 9 $3,700.00 $31700 om Retail $200.00 33 $6,600.00 xm $400.00 9 $3,60000 �� ' _� • w v S600.00 1 S600 00 �"• $800.00 2 $1,600.00 45 512,400.00 $1l/EN Service/Office $160.00 21 $3,36000 S90 00 14 51,260 00 $12000 2 $24000 $150.00 0 S0.00 $35000 0 $000 37 $4.260.00 $4,960 523,560 Outside of Zones 1 and 2, two hotels, the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel. both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory 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. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken. Mahkin (Opening Date July 2021 ), Diane's Bikinis (New Owners), Aloha Grill (New Owners). Haus of Bunnies (Opening 2021 ), Hidden Beauty OC. SMKFLWR ASSESSMENTS As of June 30th. the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021. The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount. u. o.ua.n.a w.0 Mr[Mut��lAr o.v � '.wiR rf y,u.-M1 OM WR AW,.MR 4.Ow,i.OWN` orrrrrr�rrwRw•r w _ _ - rwr«+rr«rwr.rra wwrrw.rrr•r.r...�w.rwr r�r.rrrwwrr ruwrrw. u..... ...v.r. .wr r r SFVTP=rr �r�wa wrw.r rrr or.rwwrrw�« EIDL LOAN In late October 2020, the BID applied for an EIDL loan, which was awarded in the amount of $150,000 on Dec. 31, 2020. $50.000 was placed in the BID's Main Account for use as operating capital. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19th, the BID began the process of requesting approx. $45,300 in additional EIDL funds. CITY OF HB COVID GRANT On May 24th. the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10,000 on June 14th. The funds will be placed in the BID's Main account to use for marketing and operating expenses for the 2021- 2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank- Main Acct 1,274.11 1030 First Bank- MM 160.733.80 1040 First Bank-Malco 25.692.16 Total Bank Axounts $187,700.07 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 0.00 Total Other Current Assets $500.00 Total Current Assets $188,200.07 Fixed Assets 1640 Machinery 8 Equipment 11,651.68 1660 Office Equipment 538.74 1670 Computers 1,306.31 1700 Accumulated Depreciation -13.496.73 Total Fined Assets $0.00 TOTAL ASSETS $188,200.07 LIABILITIES AND EQUITY Liabilities Current Liabilities Other Current Liabilities 2080 Payroll Clearing -185.08 2100 Payroll Tax Payable -853.29 Total Other Current Uabilites $-1,038.37 Total Current Liabilities $-1,038.37 Long-Term Liabilities 2400 Notes Payable- SBA EIDL 150,000.00 Total Long-Term Uadlttles $150,000.00 Total Liabilities $148,961.63 Equity 3100 Unrestricted Net Assets 122.544.38 Retained Earnings 0.00 Net Revenue -83.305.94 Total Equity $39,238.44 TOTAL LIABILITIES AND EQUITY $188,200.07 Cash Basis Monday,July 12.2021 04:52 PM GMT-07:00 1!1 Huntington Beach Downtown Business Improvement District Budget vs. Actuals: 2020-2021 Budget- FY21 P&L October 2020-June 2021 TOTAL ACTUAL BUDGET OVER BUDGET % BUDGET Revenue 4050 BID Assessments 53,757.00 98,000.00 -44.243.00 54.85% 4100 Chili at the Beach 25,000.00 -25.000.00 4300 Surf City Nights 92,177.40 87,500.00 4.677.40 105.35% 4400 Surf City Days -10,000.00 -10,000.00 4500 Miracle on Main 5,000.00 -5,000.00 4600 Main St.Outdoors 3,000.00 -3,000.00 4650 Families Forward 11,000.00 -11,000.00 4800 City of HB Maintenance 128,276.00 133,578.00 -5,302.00 96.03% Unapplied Cash Payment Revenue 0.00 0.00 Total Revenue $264,210.40 $363.078.00 $-98,867.60 72.77% Cost of Goods Sold 5100 Rental& Setup 7,583.00 15,000.00 -7,417.00 50.55% 5150 Parking 561.00 4,500.00 -3,939.00 12.47% 5200 Street Cleaning 1.600.00 -1.600.00 5250 Street Closure 2.400.00 -2,400.00 5300 Event Expenses 1,853.30 20.150.00 -18.296.70 9.20% 5330 Entertainment 143.12 143.12 Total 5300 Event Expenses 1,996.42 20,150.00 -18.153.58 9.91 % 5500 Miscellaneous 3,000.00 -3,000.00 5600 Holiday Beautification 15,1 05.00 35,000.00 -19,895.00 43.16% 5800 Malco Maintenance 107.169.00 124,578.00 -17,409.00 86.03% Total Cost of Goods Sold $132,414.42 $206,228.00 $-73,813.58 64.21 % GROSS PROFIT $131,795.98 $156,850.00 $-25,054.02 84.03% Expenditures 7010 Advertising& Marketing 2,321.75 12,000.00 -9,678.25 19.35% 7050 Bank Charges& Fees 462.81 6,900.00 -6.437.19 6.71 % 7070 Consultants 119,516.00 110,997.00 8.519.00 107.67% 7100 Dues& subscriptions 290.00 2,250.00 -1.960.00 12.89% 7150 Insurance 3,115.56 1,900.00 1,215.56 163.98% 7155 Workers Comp Insurance 201.00 1,100.00 -899.00 18.27% Total 7150 Insurance 3,316.66 3,000.00 316.56 110.55% 7170 Legal& Accounting Services 4,955.00 5,450.00 -495.00 90.92% 7190 Meeting &Training 477.61 1.200.00 -722.39 39.80% 7191 Election 1,726.44 1,726.44 7200 Miscellaneous Expense 8.38 8.38 7210 Office Supplies 1,874.43 2,250.00 -375.57 83.31 % 7240 Payroll Expenses 7242 Wages-Administrative Assistant 6,984.67 11.700.00 -4,715.33 59.70% 7250 Payroll Taxes 578.89 1,490.00 -911.11 38.85% 7255 Payroll Processing Fees 968.91 1,250.00 -281.09 77.51 % Total 7240 Payroll Expenses 8,532.47 14.440.00 -5,907.53 59.09% Cash Basis Monday,July 12,2021 04:57 PM GMT-07:00 Y2 Huntington Beach Downtown Business Improvement District Budget vs. Actuals: 2020-2021 Budget - FY21 P&L October 2020-June 2021 TOTAL ACTUAL BUDGET OVER BUDGET %OF BUDGET 7280 Postage 93.50 93.50 7290 Rent& Lease 11,700.00 12,200.00 -500.00 95.90% 7300 Repairs& Maintenance 50.00 360,00 -310.00 13.89% 7310 Security 7315 Ambassador Program 55,323.47 24,000.00 31,323.47 230.51 % Total 7310 Secur@y 55,323.47 24.000.00 31,323.47 230.51 % 7320 Taxes& Licenses 869.00 1.400.00 -531.00 62.07% 7330 Telephone 1,707.32 1.645.00 62.32 103.79% OuickBooks Payments Fees 1,891.43 1.891.43 Total Expenditures $215,116.17 $198,092.00 $17,024.17 108.59% NET OPERATING REVENUE $-83.320.19 $-41,242.00 $-42,078.19 202.03% Other Revenue 8000 Interest Earned 14.25 14.25 Total Other Revenue $14.25 $0.00 $14.25 0.D0% NET OTHER REVENUE $14.25 $0.00 $14.25 O.DD% NET REVENUE $-83,305.94 $-41,242.00 $-42,063.94 201.99% Cash Basis Monday,July 12,2021 04:57 PM GMT-07:00 212 BUSINESS IMPROVEMENT DISTRICT 1020 2021 BUMP MIOOME: m Nov ml: my la jamut .wi Fate rui- M MAIi w ltwttr Tww1 'IY Wmew.r "FARMI1.tN ll, 11. 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Surfer's Special and Surf Festival and Rockin Fig Bowl --� BID Member Emails like • _ _ Downtown. Did You Know? and Member Newsletter y Consumer Messaging -.. 1E =1 . opp"" OWL MEDIA COVERAGE VQ EA Ill•Ill G \ 6R F wc �_ Rockin Fig Surf Festival �� WW S� • OC Register. Daily Pilot. Spectrum _ News and KTIA Channel 5 BREA Mill,NC Surf City Nights • OC Register and Daily Pilot t �w C=:; DINE 1 i SHOP J L 4L �+ PLAY M � SURF CITY NIGHTS , COMMUNITY L SURF CITY FARMERS' MARKET The Surf City Farmers Market was opened in September of 2020 to i s provide essential needs for our community Operating in a smaller i footprint, Main Street and Olive Ave. 10-12 vendors supported the e market through the re-opening of ti Surf City Nights in March 2021. Mill Z SURF CITY MARKET PLACE 1 The Surf City Marketplace was a new open-air boutique retail destination of 4-6 vendors from October - December The Marketplace was located at the base of the 3rd block of Main Street during its closure adjacent to the Post Office KEEP ON CRUISIN NO Based on the success of the pockin Fig 0 O O �iLST event. the BID collaborated with HBBC.easynder to produce a safe. family- friendly outdoor event that celebrated cruising culture and thejoys of two wheels. i Q While November 14. 2020 was admittedly a challenging date to navigate because of increasing COVID restrictions,the open air activation complied with all health and safety guidelines and was considered a �. success 1 � r ROCKIN ' FIG °croe��, t� SURF FESTIVALli "N F 4 1 1 1 1 ' I 1 r t� t .,k ceieoration or one or aurr amity s great personanues. HocKrn rig. ano the -locals block' of Main Street. the Rockin Fig Vintage Surf Festival was a block-wide activation that safely brought several hundred people to the 3rd block to enjoy entertainment. exhibits. shopping. and dining on Oct 17. 2020. The event garnered lots of positive press coverage including the LA Times. OC Register and Spectrum News. All business on the 3rd block participated in the event by offering special and unique activities that demonstrated the creative collaboration businesses embraced during COVID. In 2021. the 2nd Annual Rockin Fig Vintage Surf Festival will be incorporated into Surf City Days. Surf City Nights successfully returned to Downtown HB on Tuesday. March 16th with a new footprint and reimagined vendor mix At approximately 50 vendors , the street fair is half the original size in terms of vendors. but occupies the same footprint creating a wonderful flow up Main Street from PCH to Orange. The outdoor dining patios on the 2nd block entice visitors to linger over dinner and the expanded vendor spacing has improved sightlines between vendors and businesses ' Surf City Nights has three distinct zones! Surf City Farmers' Market, 'Restaurant Row' on the 2nd Block of Main Street, and the Surf City Collective which features unique retail and lifestyle merchants that complement the 3rd block businesses. a A commission structure was added to selected vendor categories which helped increase profitability of the -vent even at a reduced footprint. Local businesses embraced the return I ,' of Surf City Nights. The most notable being Avila El Ranchito's introduction of the Mercado Margarita. a weekly flavor inspired by shopping the market each week. Available only on Tuesday _ nights. the Mercado Margarita often sells out Another great example of - creative collaboration to showcase Downtown HB in a fresh way. ' P. 0 SURF CITY MOVIE NIGHTS In partnership with the International Surfing Museum. Surf • City Movie Nights is scheduled for M� Fall of 2021. Through the help of sponsorships. we will be able to bring classic surf cinema to Downtown Huntington Beach. SURF CITY DAYS Surf City Days were on hiatus in Fall 2020 In October 2021. the event will return to Main Street and Pier Plaza. Local's favorite. HSS Demo Days. will return to the first block of Main Street The 2nd Annual Rockin Fig Vintage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 Halloween and Miracle on Main Street, were on hiatus in Fall 2020. We are excited bring the spirit of the season back to Downtown in _ 2021. Locals and guests will enjoy the annual Trick or Treating with our businesses and the return of Miracle on Main Street. G uutinlo » n f x A J "1 cp HBDBID ANNUAL REPORT HUNTINGTON BEACH DOWNTOWN BUSINESS - IMPROVEMENT DISTRICT 2021 - 2022 HUNTINGTON BEACH ABOUT: RE f - - Founded in 2004, the HBDBID is a private non-profit 501c6 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. �� WHAT WE DO = t-reate a cnnving uowniown ousiness -- district that delivers on the Surf City USA brand and attracts a quality ��" �- clientele year-round. In addition to _ consumer marketing. events. and _ member communications. the BID - provides capital services to benefit 7— Downtown in conjunction with J_t the City: = _a- Security "-�'z- Cleanliness — Signage WOO-- Beautification 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: i o oe ine aavocaTe voice Tor our coastal downtown community creating economic vitality and the .�; premier entertainment destination. VALUES: i r _ �-ommunicauon: taucauon ana service r Representative: The advocate voice for all in our community Integrity: Transparency. Honesty. and Respect Strategic Results: Sustainable. ROI Focused. and Efficient Passion: Positivity and Unified in Cause SECURITY -- AMBASSADORS The Ambassadors Security program through 12'0'27 Protective Services, aka Big Tony. officially started in 2017 after a pilot program in 2016 and continues to be vital to the weekend safety of Downtown HB. The purpose of the Ambassadors is to establish a rapport and presence with business owners, patrons, and residents of Huntington Beach in the Downtown area. The Ambassadors are not police officers. Their role is to observe and report situations concerning the well-being and safety within the surrounding area. They support the HBPD as needed and within their legal abilities under the law. Their goal is to ensure that all visitors to Downtown HB enjoy themselves and are provided with the safest environment possible. VHB and the BID co-fund the Ambassadors. For 2021-2022 VHB will contribute $30.000 and the BID will contribute $40,200 based on current budget allocations. A 4-man team working an 8-hour shift is scheduled Downtown every Friday. Saturday. and Sunday through the weekend of Oct. 3rd to coincide with the Air Show. After that. the Ambassadors will be scheduled as a 3-man team on specific holiday and event weekends through the fall and spring of 2022 HBPD COMMUNICATIONS The BID communicates frequently and works in partnership with HBPD. In June 2021, the BID. VHB. and HBPD created an informal Downtown Communications Workgroup to foster proactive collaboration and processes between the three organizations. The BID attends HBPD security briefings related to events planned for Downtown. MAINTENANCE & BEAUTIFICATION uowntown min is a very active aestmation ana requires rrequent. tnorougn cleaning. MCS was awarded the cleaning and maintenance contract after the City distributed a new RFQ in June 2021. The new contract provides increased frequency of power washing along heavily-trafficked areas of Downtown while also expanding the coverage area to reach more businesses. Daily porter service is the second component of the contract. The BID often increases porter staffing over holdiay and event weekend. MAINTENANCE Ft BEAUTIFICATION Zone 1 Power Washing: On Peak = 2 x week, Off Peak = 1 x week %*4%�. ,e \ 4 � EXMIBFT B n.r..�.o..-.� Downtown Mamtenance �w N MAINTENANCE ft BEAUTIFICATION Zone 2 Power Washing: On Peak = 2 x month, Off Peak = 1 x month o J _ t \ µ:q q!• ♦ _MM: .t` 44 s Y P r • EXHIBIT C ti..,...g..� Downtown Maintenance 1ep'"•a'"" """'�"�"' MAINTENANCE Ft BEAUTIFICATION I Zone 3 Power Washing: Monthly Alley and Gutters 4 � q. /J ti EXHIBIT n..w.....iN...., �a Downtown Maintenance BID MEMBER OVERVIEW AND ZONE ANALYSIS � ✓ a 2 F i erw r.i L kb � 1 —.b rbr4 - u 4.r lb f7•rry IM rri WN�C 2� �•�Oj Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones 1J 2 THERE ARE CURRENTLY 261 ACTIVE BUSINESSES IN THE DOWNTOWN BID IN ZONE 1 AND 2 . BID ASSESSMPNT CHART Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $3S1 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $900 Hotels 20 rooms or less $468 $400 21 - SO rooms $936 $800 51 rooms or more $1,404 $1,200 Services/ Office 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 Of the 162 businesses in Zone 1, 103 - or 64% - are either a restaurant or retail establishment and they are almost evenly represented. Together, restaurants and retailers generate 86% of BID assessment fees in Zone 1. At 44, Offices/ Services represent the third largest category of business in Zone 1, indicating a vibrant mix of social and professional operations within the area. Employees returning to their offices after COVID will have a positive impact on Downtown as this audience contributes to meaningful dining and shopping revenue during the week. 2nria 1 Zone 1 Carts 11 5100 $1.300 Carts 13 $1,300 Ho3N Hotels 1 $1,404 20/1ls. Restaurants 53 543.173 21 50 so. 1 $1.404 51,404 Retail 50 $32,292 Rants 1 5600 S400 Service/OHKe 44 $9,331 Restaurants Bank 1 $600 $35100 12 S4.212 162 $98,100 $702 00 18 512.636 51,053 00 17 517.901 $1,40400 6 53.424 ZONE 1 $1 $43,173 $43,173 Retail suss $351 00 11 $7.371 Raw $70200 20 514.060 a� seal $1.053.00 5 55.265 tam ts3� $l,lpa 00 4 55.616 30 $32.292 S12,292 a b. .w arws w fe.r 4e+ kmce/ORKe ar,, 529100 11 $3091 $120.00 27 53,240 $150 00 0 SO S300.00 3 S900 $700.00 3 S2.100 Y $9,332 59,331 M,100 Of the 99 businesses in Zone 2, 54 - or 55% - are either a restaurant or retail establishment with the majority being retail at 45. Together, restaurants and retailers generate 68% of BID assessment fees in Zone 2. At 37, Offices/ Services represent the second largest category of businesses in Zone 2, indicating a shift to retail and professional operations within the area which is in easy walking distance from all areas of Downtown. Zone 2 Zone 2 Seasonal 6 5300 $1,300 Seasonal 6 51,B00 Hotel Hotels 1 54M 20/less 1 $400 $400 Banks 1 5400 2150 Restaurants 9 $3,700 50. Retail 45 $12,400 Banks 1 5400 5400 Servrc e/Office 37 54,860 Restaurants 99 $23,560 520000 3 $600.00 $400 00 4 $1,600.00 ZONE 2 560000 1 560000 $900.00 1 5900.00 ` 9 $3,700.00 $3,700 Retail 06 m $200.00 33 56,600.00 $40000 9 S3,60000 5600.00 1 5600 00 59W 00 2 51,600.00 4S $12,400.00 =]ll4ilml Service/Office $16000 21 $3.360.00 59000 14 51,260 00 512000 2 S240.00 515000 0 50.00 535000 0 $0 00 37 $41111W.00 $4AW $23,S60 Outside of Zones 1 and 2, two hotels, the Hyatt Regency Huntington Beach Resort & Spa and The Waterfront Beach Resort, a Hilton Hotel, both elected to voluntarily rejoin the BID in January 2021. • There are no changes from the 2018-2019 Assessment Formula. • Assessments are paid annually as a mandatory 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. NEW BID MEMBERS: Jay Bird's: Nashville Hot Chicken. Mahkin (Opening Date July 2021 ), Diane's Bikinis (New Owners), Aloha Grill (New Owners), Haus of Bunnies (Opening 2021 ), Hidden Beauty OC, SMKFLWR ASSESSMENTS As of June 30th, the BID had collected 55% of projected annual assessments. The City completed a much-anticipated integration of the annual business license fee and BID assessment fees into one invoice in May 2021. The BID anticipates this will help with monthly assessment collections bringing the total closer to the annual projected amount, rm v.r.rewr.ur.wr.ur rrw.o..e 1 rtYrrt �.n. I— r SPt1�.rrw wrr�rr� r.r Or. wu EIDL LOAN In late October 2020, the BID applied for an EIDL loan. which was awarded in the amount of $150,000 on Dec. 31, 2020. On Jan. 5, 2021 $50,000 was placed in the BID's Main Account for use as operating capital to cover expenses such as rent and staff costs. $100,000 was placed in the Reserve account to meet min. funding requirements. On June 19. 2021. the BID began the process of requesting approx. $45.300 in additional ElDL funds. CITY OF HB COVID GRANT On May 24. 2021, the BID applied for a COVID-19 Relief Grant through the City of Huntington Beach. The BID received confirmation that it would receive an award of $10,000 on June 14th. The funds will be placed in the BID's Main account to use for marketing and operating expenses for the 2021-2022 fiscal year. Huntington Beach Downtown Business Improvement District Statement of Financial Position As of June 30, 2021 TOTAL ASSETS Current Assets Bank Accounts 1020 First Bank-Main Acct 1,274.11 1030 First Bank-MM 160,733.80 1040 First Bank-Malco 25,692.16 Total Bank Accounts $187.700.07 Other Current Assets 1330 Prepaid Rent 500.00 Undeposited Funds 0.00 Total Other Current Assets $500.00 Total Current Assets $188,200.07 Fixed Assets 1640 Machinery& Equipment 11,651.68 1660 Office Equipment 538.74 1670 Computers 1.306.31 1700 Accumulated Depreciation -13,496.73 Total Faced Assets $0.00 TOTAL ASSETS $188,200.07 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 Long-Term Liabilities 2400 Notes Payable- SBA EIDL 150,000.00 Total Long-Term Liabilities $150,000.00 Total Liabilities $148.961.63 Equity 3100 Unrestricted Net Assets 122,544.38 Retained Earnings 0.00 Net Revenue -83.305.94 Total Equity $39,238.44 TOTAL LIABILITIES AND EQUITY $188,200.07 Cash Basis Monday,July 12,2021 04:52 PM GMT-07:00 1l1 BUSINESS IMPROVEMENT DISTRICT 2021 2022 Budget INCOME: OCI IIOY me ILM La aML MR MAT ML ML A1N w 13AL13 TO3ALS 04a.sm-11.1 $I2.6Mm $ILaNm $11,86WIW SiI.OWw 596Ww S0,21,W 518.6Mm $V,Ia6m 517.I414m 518,614m Sla.lmm SISAMW SIAAAWW &O N+u++menl+ 56wow sa.wow SA.wOw AmOw sio,wOw slo,mOm sio.WOw SlO.wow SIO,=W SIQmOM SA.mOw AWOw sim.mOm SwI<ny N�nl+ SIIMW $ID,2WW S10.2mm Stamm SIO.Imw St2.2mw SIS.lmw Sf0,3mm sxO w sm."m I"."w SIa.2o0w SI12,,mm swI<m um SIS.000W SIS."m S,.min.+na.on fwnl 510,=W IMMIX) c n&,I the xun SIO.OJOm SIO,(,mw SurISF Y)o.r wlpm S?Sww SS.wQw SS.wow 55,mow 61"smm ryaONeen Ss.Omm SSWOW cF✓warn SIO.OW slow w MYN4 pn MMn $S,fYu(9 S5,CIPW Took S I/S.LaLw SK014JM11 $aws Sla� Saaaaam SIMAKI&W $aaraLLLL NUMn U&MAD SSLaM.LL SMIA" $46.2" EXPENSE: W NCY LM ILM m raI aa3l MY m sa ♦11MAL$ Cmaw MraerulNe $1163/W 510.0HW $loJ LO Sto.mow Sfi.mw s16,2PW S12,60W 516,2114W IMMIX) S17,614m SIlAmw S13.1mm IMMIX) MySe1ry2A6wr4uy $1.2mm $1.2mm S1.2mw $l,Iww SI.2mw SNom SNOW smw SNOw S3mw Slww $,ww SIO.3mm Iunb+M60r+y.vm SSM0w SI,Omm S3.W0W S2.IWW S2.IWW S2.IWW 52.1mm $ImOw 55,}mm 55.Imw 55,2mw ss,mm SW.2WW Ww .f.Oenie Slww Slww SIWW Siwm SIOOm simm simm S1ww Sim Sim Slww Stww SI.mow bn,c6ra Slww $Iww simm simm Nww Slww Simm Siww Sim. saw Sim. 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SI00m W S10.Omm CIV AIN".I SIO.wom 5100mW SM1CF 0,3+ SS,"W SS.000m Sur1[F Mane kv" Si SWw Sisww sismw YI.SWMI AB SMN sow W w N,aween $10,mOw SID.". Mvey on M,m 510.w0W $Io Omm NqM. 6e.uV6crtwn SIO,OINI. $R.,X .. SaaMLaa MAMM $Ma34,m SM ?m NLEn $y221m $61.171m1 $40,u1W $52121.00 $aa,ulaa SASAWW fa6MM $$aa.3n.w VMIMCL INCWLVSLARN% Oui SOCIAL MEDIA 0 • Started July 2020 • Followers. 3.413 • Growth. 333 new followers per month • Target 5.000 followers by June 2022. Ilk • Pela OK Q •ter. • Relaunched:October2020 � • Followers 3.025 -- • Growth 336 new followers per month _ • 100%organic growth - — -- • Target 6.000 followers by June 2022 ... - Dl►N \'1'(N1 \, COMMUNICATIONS %:! l►IU 1l►l h\(►N ! Pebrand the HBDBID to create clearer identity and increase brand equity • _ BID Blogs and Member Emails J like Downtown, Did You Know? and Member Newsletter Enhanced Website with Sections for Businesses and Visitors and ^ Event Calendar ' '� - • Event Promotions oppi MEDIA OUTREACH - a VG B/2EA FC•NG7 'Bi! • Press Releases AF= • Media Alerts ' ~�=•� • FAM Tours Y� • Media Event Invitations BREAK\NC VAE W 45% + r I Surf City Nights successfully returned to Downtown HB on Tuesday. March 16th. 2021 with a new footprint and reimagined vendor mix. At approximately 50 vendors. the street fair is half the original size in terms of vendors, but occupies the same SURF CITY footprint creating a wonderful Flow up NIGHTS Main Street from PCH to Orange.The outdoor dining patios on the 2nd block entice visitors to linger over dinner and the expanded vendor spacing has °OVJNT M1 IYIrWGTp1�N01 improved sightlines between vendors and businesses. Surf City Nights has three distinct zones Surf City Farmers' Market. 'Restaurant Row' on the 2nd Block of Main Street, and the Surf City • Collective which features unique retail ` and lifestyle merchants that complement the 3rd block businesses. t A commission structure was added to MVM�E�C" selected vendor categories which helped increase profitability of the event even at a reduced footprint. Local businesses embraced the return of Surf City Nights. The most notable being Avila's El Ranchito's introduction of the Mercado Margarita. a weekly • • flavor inspired by shopping the market each week, Available only on Tuesday nights. the Mercado Margarita often sells out. it's a great example of creative collaboration to showcase Downtown HB in a fresh way e. SURF CITY 111� MOVIE NIGHTS '1!F In partnership with the r — international Surfing Museum, Surf City Movie Nights is scheduled for M� Fall of 2021. Through the help of sponsorships, we will be able to bring classic surf cinema to Downtown Huntington Beach SURF CITY DAYS In October 2021. Surf City Days will return to Main Street and Pier Plaza. Local's favorite. HSS Demo Days. will return to the first block of Main Street. The 2nd Annual Rockin Fig Vintage Surf Festival will be added to the event this year for more exposure to all of Downtown. HOLIDAYS 2021 The spirit of the season returns - Downtown in 2021. Activities are y being planned for both nights of Halloween weekend with the _ traditional trick-or-treating Downtown on the 31st. Enhanced `— decorations and the return of Miracle on Main Street is planned for Holiday 2021. CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust, but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable, but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name. i.e. Explore Downtown HB, DTHB, or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing, Member Communications. Services. and Programming Resolution No. 2021-42 Exhibit "B" BOUNDARY MAP J e • 2 tip. \NFU � .w6 vr..w IM 2 +•, Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones 1&2 Businesses to be Assessed—FY 2021-2022 Business Name. ZIMBABWE HB GIFTS & ACCESSORIES (CT) SHOREBREAK HOTEL THE IRISHMAN BOLT TOURS PEDEGO H B SALT HAIR LOUNGE ESTHETICS AND LASH EXTENSIONS BY HANNAH ARIA HOOKAH LOUNGE SALT LIFE LLC JACK'S SURFBOARDS CVSIPHARMACY #819 MODERN PARKING INC SMILES CAFE GENTLE DENTAL HUNTINGTON BEACH MAIN STREET CLEANERS BOGGELN & COMPANY CPA E J I DESIGNS STYLING BY STEPH I THE BLONDE ROAST COLOR ME ALLIE DASH OF SASS NAILED IT NAIL BAR MINDFUL LIVING EXPERT ANDE'S PERUVIAN ARTS AND CRAFTS (CT) ANDE'S PERUVIAN ARTS AND CRAFTS (CT) HOT TRENDS SUNGLASSES (CT) THE FUNNEL HOUSE NORTH SHORE POKE CO NO KA OI SANCHO'S TACOS KILLARNEY'S TOP H B NAILS DARE ME BIKINI SMOKERZ LAND 3 SMOKE SHOP ZEPHYR BARBERSHOP CASSANDRA CAPRI HAIR COLDSTONE CREAMERY MIN'S DYNASTY PERMANENT MAKEUP/MD MEDICAL SPA DECO HAIR LOUNGE 7-ELEVEN STORE #2172.34653A BEACH ISLAND JAX BICYCLE CENTER SAIL PROPERTIES INC INVESTMENT BUILDERS LLC WAVELENGTHS RECOVERY LLC PERFECTED WEALTH MANAGEMENT KOKOMOS SURF SIDE INDARRA MODERN INDIAN CUISINE MAIN ST BARBERS KENNETH BROWN SALONS HOT TRENDS SUNGLASSES (CT) HOT TRENDS SUNGLASSES (CT) GRATER GRILLED CHEESE CHARLIE'S GYROS ZACKS PIER PLAZA ZACKS TOO DWIGHT'S BEACH CONCESSION SURF CITY STORE BEACH WAVES SKIN REHAB SURF CITY SEGWAY HUNTINGTON SURF AND SPORT MAIN STREET DAY SPA BEAUTY BUNGALOWS BY PORCELAIN PRISTINE MOTORSPORTS VEGWARE PACKAGING INC PARKING CONCEPTS INC THE U P S STORE #4482 ROBINSON LEE TURN-KEY HOMES SPEEDY CREDIT REPAIR INC F H A REVIEW LUNA UNITED PACIFIC SOTHEBY'S INTERNATIONAL REALTY R M A INTERNATIONAL LANDSCAPE ARCHITECTURE & PLAN BREWSTER'S ICE HAUS OF BUNNIES MAHKIN THAI & SUSHI ZERO ZERO PIZZERIA WAHOO'S FISH TACO LONGBOARD RESTAURANT & PUB MANGIAMO GELATO NAUGLES ROCKIN FIGS SURF HEADQUARTERS MAKIN WAVES SALON BARE BUNNY AESTHETICS SOCK HARBOR AMERICAN VINTAGE BASKIN ROBBINS #362100 MODEL CITIZEN SURF CITY CHIROPRACTIC MAILBOX STATION INNOCEAN WORLDWIDE AMERICAS LLC ROBERT KOURY PROPERTIES STUDENT SUPPORT LIVE LP CELLORION (CT) HUNTINGTON SURF INN T K BURGERS RITTER'S STEAM KETTLE COOKING CRABBY'S BOAT HOUSE 2ND FLOOR FAD CRUISERS PIZZA BAR GRILL ALOHA GRILL MAIN STREET OPTICAL & BOUTIQUE THE BLOW DOWN LLC M E HELME HOUSE FURNISHING CO DING DR LLC BOW AND ARROW HAIR LOUNGE LOVE LOCKS HAVAIANAS SANDALS EL DON LIQUOR RAY'S RENTALS GALITZEN PROPERTIES A & S ACCOUNTING SOLUTIONS INC H M R ARCHITECTS INNOCEAN WORLDWIDE AMERICAS AMBIT CONSULTING LLC ZIGGYS ON MAIN SESSIONS WEST COAST DELI DAIRY QUEEN HURRICANES BAR & GRILL FRED'S MEXICAN CAFE CUCINA ALESSA HB JACK'S BEACH CONCESSION ROCKY MOUNTAIN CHOCOLATE FACTORY SAKALSURFBOARDS SALON RETRO NEIRA DESIGNS & FIX-IT ETC MONTGOMERY JEWELERS EV RIDEABLES LLC PACIFIC COAST BODY SCULPTING LLC JACKS SURF & SPORT HUNTINGTON BEACH EASY RIDER, DANK CLOTHING F45 TRAINING HUNTINGTON BEACH DOWNTOWN PIERSIDE COMMISSARY LAZ PARKING CALIFORNIA LLC FLYWHEEL WEAVER & ASSOCIATES GRUPO GALLEGOS SOLENA LANDSCAPE EIDO CELLORION (CT) MAIN ST LIQUOR MARKET Just Right Apparel HOT SPOT ZIMBABWE HB GIFTS & ACCESSORIES (CT) TZONE SUSHI ON FIRE THAI WAVE RESTAURANT HUNTINGTON BEACH BEER COMPANY SURF CITY ALE HOUSE LET'S GO FISHING & SURF CITY SNACK BAR LLC SURFBOARD AND BIKE RENTALS MOOD SWINGS HOSTETLER KERI SKINSATIONAL MAIN STREET WINE COMPANY PARLOUR ELEVEN HUNTINGTON SURF & SPORT COASTLINE REAL ESTATE INVESTMENTS LLC CONTINENTAL 1 HOUR CLEANERS INC CDA MARKETING GROUP INC P R TALENT HEADLINER SURF CITY SKATES JAY BIRD'S BEAUTY & THE BEACH STUDIO KUO JESSICA AUTOMATED CASH MANAGEMENT SYSTEMS (ACMS) POSITIVE THOUGHT BRAND (CT4) ZIMBABWE HB GIFTS & ACCESSORIES (CT) PETE'S MEXICAN FOOD ICECREAMTON - SOFTY ICECREAM & HANDCRAFTED CHURROS B J'S RESTAURANT & BREWHOUSE DUKE'S WATERFRONT BEACH CABANA BEE BEE NAILS DANIEL JAFFE DDS LUCY'S TAILORING & ALTERATIONS M C A TRADING LLC HAMLIN GOODING THE ICE CREAM WAY DING TEA JAN'S HEALTH BAR I H 0 P MAIN STREET HAIR COMPANY SUGAR CABANA CALI SHORE STORE HAVEN OF WELLNESS INC EUROPA NAIL STUDIO THE TRAINING SPOT HUNTINGTON BEACH REALTY HORN HOLISTIC ACUPUNCTURE DIRTY DOG WASH RIO MEDIA INC 221 N MAIN STREET BEACH PROPERTIES LLC GALLAGHERS IRISH PUB RACHEL IVERSEN LAC DIANE'S BIKINIS Healing Cryotherapy BOBASAUR SUGAR SHACK CAFE SHARKEEZ HQ GASTROPUB KITE CONNECTION CIO DAVE SHENKMAN ELEVATE SPA SERVICES SUITE INSPIRATION SURF CITY MARKET PORCELAIN HAIR STUDIO f PORCELAIN HAIR EXTENSIONS 7 ELEVEN STORE #35767B SUNWEST REALTY BRENT O NICHOLS DDS IPA 1031 GROUP LLC TEAM DESIGN & CONSTRUCTION RIPCORD DIGITAL INC W & R STUDIOS BANZAI BOWLS WET DOG TAVERN PEROS NIGHTCLUB & SPORTSBAR COACH'S MEDITERRANEAN GRILL SHABU ON FIRE BODHI TREE VEGAN CAFE ORANGE COUNTY BARBERS PARLOR JOLYN CLOTHING COMPANY RIP CURL SURF CENTER SIGNATURE PRINTING CORREA& ASSOCIATES J & J COASTAL LENDING HOWARD FISCHER DVM A PRO CORP 25DEGREES HIDDEN BEAUTY OC BY SHAUNA NASRI JPG Inc. dba Oak Leaf Productions MILK AND HONEY HB ARM IJO ANTHONY (CT) 602 COFFEE HOUSE STARBUCKS COFFEE COMPANY #575 AVILA'S EL RANCHITO H 8 DOS TOROS MEXICAN GRILL SANDY'S BEACH SHACK 1 LOOK VINTAGE 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 C B INVESTMENTS INC WESTLAND BUSINESS SERVICES INC PACIFIC RIM TAX & ACCOUNTING ATM GLOBAL INCORPORATED JUVE CREATIVE INC GUARANTEED RATE INC BOMBURGER BLUE CHAIR ACCOUNTING BID ASSEccMPNT CHART Assessment Chart Oct. 1, 2021 - Sept. 30, 2022 Category Benefit Zone 1 Benefit Zone 2 Retail 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $1,404 $800 Restaurants 1,000 sq. ft. or less $351 $200 1,001 - 2,500 sq. ft. $702 $400 2,501 - 4,999 sq. ft. $1,053 $600 5,000+ sq. ft. $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 1st Floor $281 $160 Basement, 2nd Floor or Higher 1,000 sq. ft. or less $120 $90 1,001 - 2,500 sq. ft. $150 $120 2,501 - 4,999 sq. ft. $300 $150 5,000+ sq. ft. $700 $350 Cart/ Kiosk $100 $80 Banks/ ATM $600 $400 Seasonal, 9 mos or less $500 $300 Resolution No. 2021-4 Exhibit "C" iL CHALLENGES REVENUE Projected Annual BID Assessment Revenue is just 18% of the budget. Recurring event revenue with Surf City Nights has proven to be very robust, but the total footprint is still about 50% of what it was pre-COVID. Surf City Nights revenue is projected to be 31% of the annual budget. Individual Signature Events like Surf City Days and Chili at the Beach are expected to be profitable, but frequent one-off events are not supportable with current BID staffing. IMPROVEMENTS • Rebrand BID with a user-friendly name, i.e. Explore Downtown HB, DTHB. or Experience Downtown HB • New Seasonal Events: examples include a Summer Kick-off event and possible monthly lifestyle events • Annualized Calendar of Events to Increase Shoulder Season Programming • Double Social Media Followers and Engagement • Redesign and Expand Website Content to Feature Different Sections for Businesses and Visitors • Increase Clarity and Value of BID Membership through Marketing. Member Communications, Services. and Programming Res. No. 2021-42 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 7, 2021 by the following vote: AYES: Peterson, Bolton, Delgleize, Carr, Posey, Moser, Kalmick NOES: None ABSENT: None RECUSE: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California City of Huntington Beach 2000 MAIN STREET CALIFORNIA 92648 40 COMMUNITY ENHANCEMENT DIVISION Business Development - Housing Real Estate 714.536.5582 www.hbbix.com fax - 714.375.5087 September 8. 2021 Dear Downtown Business Improvement District Member, As a member of the Downtown Business Improvement District(the "District'), this letter is to inform you that the Huntington Beach City Council has begun the annual process to levy the self-assessment on businesses located within the District. Each year, the process begins with the District's Advisory Board preparing and submitting its Annual Report to the City Clerk, which is then presented to the City Council for approval or modification. On September 7, 2021, City Council approved the Annual Report, including the proposed budget, and adopted a Resolution of Intention to levy assessments for Fiscal Year 2021-2022. Enclosed with this letter is the Resolution of Intention and the Annual Reports for Fiscal Years 2020-2021 and 2021-2022 (Exhibit A), the district boundary map, list of businesses to be assessed and assessment schedule (Exhibit B), and the types of improvements and activities to be funded (Exhibit Q. No amendments to the boundary, the benefit zones or the assessment formula are proposed. Please be advised that the City Council public hearing to levy the annual assessment has been scheduled for October 5, 2021, at 6:00 pm, or soon thereafter, at which time public testimony will be heard regarding this matter. Before or during the public hearing, business owners may protest the annual assessment. A protest may be made orally or in writing. If made in writing, protests shall be mailed to the City Clerk's Office, City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Oral protests can be made during the public comment period of the public hearing. Should you wish to give oral testimony at the hearing, please refer to the City Council meeting agenda available at huntingtonbeachcagov for instructions. In the event written protests are received totaling 501/6 or more of the District's assessment value, the City Council may not impose the annual assessment for one year. Should you have any questions, please contact Robert Ramirez, Economic Development Project Manager, at(714) 375-5186 or via email at robert.tamirez@surfcity-hb.org. Sincerely, V � ��c,, � Gam_ ss Casanova Economic Development Manager PROOF OF SERVICE OF PAPERS STATE OF CALIFORNIA I ) ss COUNTY OF ORANGE ) I am employed in the County of Orange. State of California I am over the age of 18 and not a party to the within action, my business address is 2000 Main Street. Huntington Beach. CA 92648 Pursuant to Code of Civil Procedure § 1094 6 on September 10, 2021 1 served the foregoing document(s) described as Resolution No. 2021-42 — A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment for Fiscal Year 2021-2022 Within the Huntington Beach Downtown Business Improvement District and a Cover Letter Addressed to the Downtown Business Improvement District Members on the interested parties in this action by placing a true copy thereof in a sealed envelope addressed as follows 259 Occupants/Owners — See label list a [X] BY MAIL -- I caused such envelopes to be deposited in the mail at Huntington Beach. California I am readily familiar" with the firm practice of collection and processing correspondence for mailing. It is deposited with U S Postal Service on that same day in the ordinary course of business. with postage thereon fully prepaid. I am aware that. on motion of a party served, service is presumed invalid if postal cancellation date or postage meter date is more than 1 day after date of deposit for mailing in the affidavit b [ ] BY MAIL -- By depositing a true copy thereof in a sealed envelope with postage thereon fully prepaid in the United States mail at Huntington Beach. California, addressed to the address shown above c [ ] BY DELIVERY BY HAND to the office of the addressee d [ ] BY PERSONAL DELIVERY to the person(s) named above e ( ] BY FAX TRANSMISSION to No I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct Executed on September 10, 2021. at Huntington Beach. California Senior Deputy C Clerk g/followulproof of service letter"doc .� . Easv'Peel"Addres�Labels JACK'S SURFBOARDS BOGGELN & COMPANY CPA CVS/PHARMACY#819 JACKS SURF AND SPORT LLC BOGGELN & COMPANY INC GARFIELD BEACH CVS LLC O 16350 GOTHARD STREET#101 215 MAIN STREET 1/2 ONE CVS DRIVE - MC1160 HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 WOONSOCKET, RI 02895 MODERN PARKING INC THE IRISHMAN SHOREBREAK HOTEL MODERN PARKING INC RAYMOND HARTNETT DIAMONDROCK HB TENANT LLC 303 SOUTH UNION AVENUE 424 OLIVE AVENUE 500 PACIFIC COAST HWY L LOS ANGELES, CA 90017 HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 Rj SALT LIFE LLC DASH OF SASS NAILED IT NAIL BAR SALT LIFE LLC SANDRA SCHULZ TAYLOR&NATALIE SUSSMAN JENNIFERTRAN 322 SOUTH MAIN STREET 326 MAIN STREET 200 MAIN STREET #117 GREENVILLE, SC 29601 HUNTINGTON BEACH,CA 92648 HUNTINGTON BEACH, CA 92648 ZIMBABWE HB GIFTS 8,ACCESSORIES(CT) BEACH ISLAND INVESTMENT BUILDERS LLC ISMAIL ADAM ABDELMAGED BEACH ISLAND INC INVESTMENT BUILDERS LLC 21051 NEWLAND STREET 0161 127 MAIN STREET 101 MAIN STREET#280 HUNTINGTON BEACH,CA 92646 HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 -1-- In ANDE'S PERUVIAN ARTS AND CRAFTS(CT) NO KA OI HOT TRENDS SUNGLASSES (CT) JUAN ALBERTO JUY NO KA OI LLC GOKHAN ALI KUCUK 18731 APPLEWOOD CIRCLE 215 MAIN STREET 957 GARNET AVENUE HUNTINGTON BEACH,CA 92646 HUNTINGTON BEACH, CA 92648 SAN DIEGO, CA 92109 9� ANDE'S PERUVIAN ARTS AND CRAFTS(CT) TOP H B NAILS NORTH SHORE POKE CO JUAN ALBERTO JUY DAT PHAT NGUYEN NORTH SHORE POKE CO 18731 APPLEWOOD CIRCLE 220 5TH STREET 214 5TH STREET#101 HUNTINGTON BEACH, CA 92646 HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 THE FUNNEL HOUSE KILLARNEY'S WAVELENGTHS RECOVERY LLC HEIDI'S SWENSENS OF LONG BEACH LLC CULINARY CUISINE LLC WAVELENGTHS RECOVERY LLC 168 HARVARD LANE 703 PIER AVE #B-815 301 MAIN STREET#201 SEAL BEACH, CA 90740 HERMOSA BEACH, CA 90254 HUNTINGTON BEACH, CA 92648 G DARE ME BIKINI COLDSTONE CREAMERY KENNETH BROWN SALONS TANYA BROWN ICESTARFOODS LLC AIDEN BROWN LLC 320 MAIN STREET#1/2 416 OLIVE AVENUE #K 29883 SANTA MARGARITA PARKWAY HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 RANCHO SANTA MARGARITA, CA 92688 SMOKERZ LAND 3 SMOKE SHOP INDARRA MODERN INDIAN CUISINE SURF CITY STORE ASAP TOBACCO 2 INC INDARRA LLC T VIRAY/N WESCOTT 19042 BROOKHURST STREET 301 MAIN ST#107 60 MAIN STREET HUNTINGTON BEACH, CA 92646 HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92648 HUNTINGTON SURF AND SPORT TURN-KEY HOMES THE U P S STORE #4482 HUNTINGTON SURF AND SPORT INC FORTUNA INC ARCA INVESTMENT CORP 300 PACIFIC COAST HWY#410 20771 CATAMARAN LANE 412 OLIVE AVENUE HUNTINGTON BEACH, CA 92648 HUNTINGTON BEACH, CA 92646 HUNTINGTON BEACH, CA 92648 Pat:avery.coin/patents r .� AVERY • . . 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Switzer, Donna Subject: FW: Agenda Item 16 (The Downtown BID) Patty Esparza, C7►fC Assistant City Clerk City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 (714) 536-5260 From: Estanislau, Robin <Robin.Estanislau@surfcity-hb.org> Sent: Tuesday, September 7, 2021 4:38 PM To: Esparza, Patty <PEsparza@surfcity-hb.org> Subject: Fwd: Agenda Item 16 (The Downtown BID) Sent from my iPad Begin forwarded message: From: Kim Kramer<kim a e-mailcom.com> Date: September 7, 2021 at 11:33:50 AM PDT To: "Carr, Kim" <Kim.Carr(&,surfcity-hb.org>, "Delgleize, Barbara" <Barbara.Del Ig eize�surfcity-hb.org>, "Posey, Mike" <Mike.Posey'iisurfcity-hb.ore>, "Moser, Natalie" <Natalie.Moser(a surfcity-hb.org>, "Kalmick, Dad' <Dan.Kalmick(dsurfcity-hb.org>, "Bolton, Rhonda" <Rhonda.Bolton(d),surfcity-hb.org> Cc: "Chi, Oliver" <oliver.chi a surfcity-hb.org>, "Estanislau, Robin' <Robin.Estanislau a surfcit).-hb.ore> Subject: Agenda Item 16 (The Downtown BID) Dear City Council Members, cc: City Manager, City Clerk, As most City Council members are well aware, the Downtown BID organization is currently in violation of. . . • Financial Disclosure Laws, SUPPLEMENTAL • The California Public Records Act, COMMUNICATION • Federal501c Disclosure Laws, • BID Nonprofit Bylaws, McWv Data: • The City's Code of Ethics, and r Agenda Item No.: A0 • The California Constitution,Article 1 Section 3(b)(1) as follows: "The people [of California]have the right of access to information concerning the conduct of the people's business, and, therefore, the meetings of public bodies and the writings of public officials and agencies shall be open to public scrutiny. " As most City Council members are also well aware, the Downtown BID organization is engaged in election irregularities which include candidate suppression and BID staff involvement in candidate solicitation,both of which are unethical and yet another violation of the City's Code of Ethics. As most City Council members are also well aware, the Downtown BID organization deliberately and with malicious intent(by definition, "acting willfully or intentionally to cause harm') avoids best practices for membership organizations regarding membership communications. To wit (as of August 16, 2021), the BID does not have a business owners database and the BID can not communicate by email with 23%of the BID member businesses and an estimated 30%of the BID business owners. And finally, AS EACH CITY COUNCIL MEMBER HAS TAKEN AN OATH OF OFFICE TO DEFEND AND SUPPORT THE CALIFORNIA CONSTITUTION and whereas the Downtown BID organization has(on more than one occasion) deliberately and with malicious intent ignored their legal and constitutional obligations under the California Public Records .Act enshrined in Article 1 Section 3(bxl) of the California Constitution,what action n ill the Citc Council take this evening to address these land other) issues? In closing, as most City Council members are also well aware, there are many other issues in play here with the BID organization, the least of which are a lack of accountability, lack of professionalism and lack of responsibility to the BID membership itself. Each year the Council meets to review the BID operation and I would encourage this Council to make adjustments this year to raise the stakes. Let's no longer bury our heads. Let's do the work to make Downtown the best it can be. Thank you for your consideration. Respectfully submitted, Kim Kramer kim a e-mailcom.com 2