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HomeMy WebLinkAboutCity Council - 2026-26 RESOLUTION NO. 2026-26 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 2026-2027 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 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 assessments to promote business and tourist related activities; and The District's Advisory Board has prepared and filed with the City Clerk an "Annual Report" and "Proposed Budget for Fiscal Year 2026-2027" (collectively, "Annual Report"); 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. By this Resolution, the City is declaring its intent to levy an assessment for fiscal year 2026-2027 pursuant to the process detailed in Streets and Highways Code §36500, et seq.; and NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve as follows: SECTION 1. The recitals above are incorporated herein. SECTION 2. There is no intention to change the boundaries or any benefit zone within the District. SECTION 3. 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 2026-2027, describing the improvements and activities to be provided. 26-18195/384238 1 Resolution No. 2026-26 SECTION 4 Council's intent is to levy and collect assessments within the District area for Fiscal Year 2026-2027 as per the map of the District area and the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference. SECTION 5. 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 6. A public hearing shall be held before the City Council on Octobei 6, 2026, 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 7. 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 8. 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 9. 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. 26-18195/414369 2 Resolution No. 2026-26 SECTION 10. 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 1st day of September , 2026. Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City Manager erector of Community Development APPROVED AS TO FORM: City Attorney 6"`o ' ATTEST: City Clerk 26-18195/414369 3 Reso No. 2026-26 Exhibit "A" Exhibit A: Annual Report Reso No. 2026-26 Exhibit "A" `�,QROVLt'yl ��' On'IV o. r ,....),SAL....i .r - - =4 yjq, .- - T . 10,,,,:411 WELCOME TO SY/,�F CM' `1..• 'I ' HHN7INBTBN BEACH,CA `•1� • w fp r 41. . .�,•' ii. 4., It, Parking c -ma .. Garages SI it I 4 . .. ! , � STOP. _ )6,1 .,-,,., � HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT 2026-2027 WHY HAVE A BUSINESS IMPROVEMENT DISTRICT A Business Improvement District (BID) is a partnership between local businesses that invests in keeping our downtown vibrant, welcoming, and thriving. By pooling resources, businesses can fund improvements and activities that make the district cleaner, safer, and more enjoyable for everyone. What a BID Does for the Community Creates a cleaner, safer environment BIDs provide enhanced cleaning, maintenance, and safety services that go beyond what the city can offer on its own. This helps keep the district inviting for residents and visitors. Supports a great visitor experience From events and marketing to holiday decorations and public art, BIDs help create the lively atmosphere that makes people want to spend time—and money—downtown. Gives businesses a stronger voice Instead of acting alone, businesses work together through the BID to shape priorities, advocate for improvements, and collaborate with the city on issues that matter. Provides stable, reliable funding Because BID assessments are collected consistently, the district can plan long-term projects and maintain high-quality services year-round. Boosts economic vitality A well-maintained, attractive district draws more customers, encourages investment, and supports the success of local businesses. Why It Matters A Business Improvement District ensures that the heart of a community continues to grow, evolve, and shine. It's a way for businesses to take an active role in shaping the future of downtown, creating a place where people want to visit, shop, dine, and enjoy. Es .yam_ vird 2026-2027 ANNUAL REPORT PAGE 1 ABOUT �- DOWNTOWN ` ; • , HUNTINGTON • BEACH N. Aiiika diadmiagiafie ALshopping, dining and services destination for locals and IOWA - rim it , tourists visiting Downtown Huntington Beach ABOUT The Huntington Beach Downtown Business Improvement District, doing business as Downtown Huntington Beach, is an independent nonprofit California corporation organized under section 501(c)(6) of the Internal Revenue Code. Established in 2004, the organization exists to strengthen the economic environment of the Downtown Business District through initiatives focused on marketing, safety, maintenance, tourism, and special events. Role as the City's Advisory Board Downtown Huntington Beach serves as the official Advisory Board to the City of Huntington Beach for the Downtown Business Improvement District. This role is established under: City Ordinance 3661, City Ordinance 3797 and California State Code 36500 et seq. Purpose and Responsibilities The organization is charged with advancing the vitality and long-term success of the Downtown District. Its responsibilities include: 1. Promoting Economic Revitalization Supporting the growth and stability of the District by creating jobs, attracting new businesses, and preventing economic decline. 2. Generating Revenue for Improvements Developing and managing funding to support improvements and activities that directly benefit the District and its stakeholders. 3. Enhancing the District as a Destination Promoting Downtown Huntington Beach's recreational, cultural, and visitor attractions to strengthen its appeal as a premier tourist destination. 2026-2027 ANNUAL REPORT PAGE 2 Downtown Huntington Beach Business Representation Restaurants 72 • 27.7% Retail (Salon _ Incl.) 3.8% Carts/Kiosk 91 10 1.9% / Seasonal 5 / 5 30.8% Services/Office 80 MISSION To be the advocate for our coastal downtown community creating economic vitality through improvements and activities; and to establish the District as a shopping, dining and services destination for locals and tourists. =- 1 1kia !fob— —44„ ft, ' 1-1 4o,f Orr 4 • >4 .: � 014 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 ;yi m being welcoming, accessible, clean, safe, fun and environmentally conscious. _ 2026-2027 ANNUAL REPORT PAGE 3 Stakeholder Engagement & Beach City Council. Member Involvement By attending meetings and providing input, community members help ensure Downtown Huntington Beach: We that Downtown Huntington Beach Want You Involved continues to reflect the needs and The Downtown Huntington Beach is interests of local businesses, property committed to transparency, owners, residents, and visitors. collaboration, and active participation from all stakeholders. Strong Opportunities to Get Involved engagement from businesses, Active participation from BID members is property owners, residents, and essential to the success of Downtown community partners helps ensure Huntington Beach. Members are that Downtown Huntington Beach encouraged to engage in Board remains a vibrant destination for meetings, community initiatives, and commerce, entertainment, and special events throughout the year. community connection. Events such as: Board Meetings and Governance • Sweet on Main The Downtown Huntington Beach • Burger Fest Board of Directors meets monthly, currently on the third Thursday at Seasonal and community-focused events 3:30 p.m. Meetings are typically held provide excellent opportunities for at the Huntington Beach Art Center businesses to increase visibility, connect or another location within the with customers, and contribute to the Downtown District. district's vibrant atmosphere. In addition, businesses are encouraged To promote transparency and public to work with the Downtown Huntington participation, meeting agendas are Beach social media team to highlight posted on the Downtown Huntington promotions, milestones, products, Beach website at hbdowntown.com services, and community involvement. at least 72 hours prior to each meeting. In addition to monthly Looking Ahead Board meetings, the BID conducts As Downtown Huntington Beach quarterly meetings and an annual continues to evolve, stakeholder meeting each October to gather engagement remains a top priority. stakeholder feedback and discuss Through open communication, active priorities, programs, and future participation, and collaborative initiatives. leadership, the BID will continue working Public Input and Community to enhance the economic vitality, visitor Voice experience, and overall success of the The Board strongly encourages public Downtown District for years to come. participation and welcomes QvE�E comments regarding Downtown \* _4l programs, initiatives, and issues affecting the community. ' Stakeholder feedback plays an 7,, important role in shaping Boards' decisions and strengthening -�..�j.. advocacy efforts with the Huntington immismiimw 2026-2027 ANNUAL REPORT PAGE 4 ���R0Y ye, 2025-2026 uuw� tcwn ✓ y _ HIGHLIGHTS Collaborated with the City and developed a plan for additional lighting at Z Park, which the BID is purchasing. Launched two successful downtown food competitions, Sweet on Surf City and Burger Fest— that spotlighted our Downtown restaurants and generated more than 1,700 votes. Followers, views, and interactions increased by over 400% across all social media accounts (e.g., Instagram, Facebook) dedicated to Downtown Huntington Beach businesses and events. Established an annual and quarterly Marketing Plan. Hosted a Strategic Plan Workshop. Worked with Chamber of Commerce and the Strand to organize two (2) Business Expo's on 5t" Street. 2026-2027 GOALS Reestablish and rename the non-profit and create new by-laws, Articles of Incorporation, etc. to assist in the management of Downtown Huntington Beach. Send out Monthly Newsletters to all members. Reestablish Welcome packets for all new members. Introduce quarterly coffee with your Downtown Huntington Beach Board of Directors. Respond to City RFP for Surf City Artisan Fair. Create a Donation Package for Downtown Huntington Beach and Special Events. 2026-2027 ANNUAL REPORT MEMBER OVERVIEW ,..„.....„_„...,., ......._._ ',� s n Via° c-. p x.'gW 6 IrMMIdI Ave S - ''':.\,. g 4'4`. CL„, wml.5ane Ln, s I g r '� 2 ISm , k,V 1.,, Elm,.Ae.y - . = l,* 2 e a a Le _ 3 _ In teem Ln "' Ems` D¢r. ul Are a i ,� ;Weft.. ua m,v b i-- ' 2 J/ vl.rr.po A+t YCrma+O J �; �Ow yr e - FF BhNICe p� la 2 Dar Dr aa ' G Salerno.,A. f34. 1 v a D..erFre ea.a 2 , ADanca Av. . o e e v 1c y, w j vieteIIJII 0,, e' 4 ' E- f 7.K i J eraa a*ac, a n ALa i F a° j/ nca r::rr qLn *r.. ...t Dr 5nu tlrwrnll C,. a o 5 C SI a +D St sa•r6ni1 Gar Imo.",./c.,. E 51 �51 r'.abre.A D. p n . •4 La.an a e . •'tl °''rr dr ;.- _ ' %,ve bO• , N. Huntington Beach N. N Downtown Business Improvement District NN \ m Boundaries and Benefit Zones I& 2 N\ N �1 There are approximately 250 businesses in the District. Depending on the business type, square footage, and location, individual business assessments range from $80 to$1,404 per year. There is no recommendation to increase assessments or area this new year. 2026-2027 ANNUAL REPORT PAGE 6 MEMBER ASSESSMENT CHART 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 - 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 Assessments excluded for apartments, real estate agents, non-profits, home-based businesses and temporary vendors. Businesses 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$30.00 to Downtown Huntington Beach directly. 2026-2027 ANNUAL REPORT MAINTENANCE . . In 2013, the City approached Downtown Huntington Beach to 7, :ter 1 oversee the maintenance in Downtown. The partnership increases -- Y.,• , r the services and oversight. The City's Public Works Department and Ii �\m, Downtown Huntington Beach have a Maintenance Agreement. A '' I Assessment funds are used to enhance the maintenance services. Every three years, Downtown Huntington Beach sends out a -* Request for Proposals to ensure fair price and excellent services for t Y,''` the steam cleaning and porter services. In the current year the area was increased to include 6th Street commercial, 5th Street both sides, Pacific Coast Highway from 1st Street to 6th Street in the commercial area. Malco is the selected contractor. Based on .416 discussions with the City Council, Malco has increased steam cleaning the sidewalks on Monday and Thursday nights. The costs associated with the maintenance contract have surpassed the originally stipulated amount in the MOU. To address these supplementary `-1r r expenses, the Public Works Department has formally requested additional _ funding and in addition, the BID has increased funding. Downtown Huntington Beach has also allocated additional funds specifically for the purpose of hiring additional maintenance porters within the Downtown during events such as the 4th of July, US Open of Surfing and the Pacific Air Show. This proactive measure is intended to enhance the overall upkeep and functionality of the district during these events. 2026-2027 ANNUAL REPORT PAGE 8 MAINTENANCE SIDEWALK CLEANING MAP s,\ / �C�' '� �'\ /4,, .P' �'t. 1 �10 J� 9 y*� �� f'' 9. 0 gbh. 41.4 1- ON 17_ 424 t: b > tb �,�4- .=,,,, 4 4/ <40., `�, � IT 61/4. 44)Ahh.,,„,.. ,is-Iv tit, ite dL 4tir N it l 4:44e At 7.',, 44)..ii,,,, \ ,' It ,, % fcN., 4... ,,1 � t � 4,,, / /\ lei ida ,,,,, N. „,.., ,,,.. f \ ib Yellow - Daily Porter c,� Services /). ...e., . N4;"" \ Red - Weekly Steam c ,� Cleaning % Blue/Green - Monthly and C \ as needed Steam '\ \t"..00 --/ �,�\SI/ "---/ ( i '/ -,.\\_< Cleaning ,pYKil\ f �; 4 , t, Nr)113: te 2026-2027 ANNUAL REPORT PAGE 9 DOWNTOWN WEEKLY EVENTS SURF CITY NIGHTS TUESDAY NIGHTS g� ,. Experience the energy of Surf City Nights, Huntington Beach's beloved weekly `* ; •j_` Certified Farmers' Market and Street Fair. This vibrant, family-friendly event 1.7 draws both locals and visitors to the heart of downtown for an evening filled - 4 with community spirit and coastal charm. !..1 I Stroll along Main Street and discover a curated mix of vendors offering fresh, {*' , locally grown produce, artisan goods, and unique finds. Enjoy live entertainment from talented local bands as they set the soundtrack for a lively and welcoming atmosphere. Downtown businesses join in the celebration with exclusive Surf City Nights specials, many extending their storefronts onto the ' ir►"' /'_� street for an even more immersive experience. More than just a market, Surf City Nights fosters meaningful connections by partnering with community organizations and local nonprofits, making it a true gathering place for all. Event is funded thorugh Downtown Huntington Beach. SURF CITY ARTISAN FAIR FRIDAY, SELECT WEEKENDS • The Surf City Artisan Fair is a recurring event designed to showcase the exceptional handmade and thoughtfully crafted work of local and regional artisans. Celebrating creativity and craftsmanship, the fair offers a curated marketplace where artistry and community come � 4 if together. �A y Rooted in the Four Corners philosophy—Gathering, • -• .i* ►� Giving, Creative, and Learning—the Artisan Fair goes �I �`� beyond a traditional shopping experience. These pillars shape an environment that inspires connection, encourages philanthropy, and promotes the sharing of ideas and skills. Guests can enjoy a dynamic blend of art, nonprofit initiatives, and interactive experiences, all thoughtfully integrated to foster engagement and discovery. Community groups and educational opportunities further enrich the event, making it a place where creativity thrives and meaningful connections are made. Event is funded thorugh Downtown Huntington Beach. 2026-2027 ANNUAL REPORT PAGE 10 DOWNTOWN CO ITY EVENTS SURF CITY SPOOKTACULAR OCTOBER 31, 2025 A beloved, family- and pet-friendly community event, the _, Downtown Huntington Beach Halloween Spooktacular brings �;1, t ►•. Main Street to life with festive fun and creative spirit. Each , :, . , '�,,'i�t_ , • .,_ . year, the community comes together in costume to enjoy a !r ,� 1,.r,� r it•t • ,,, safe and lively trick-or-treating experience along participating • - "°` S. �' 1 businesses throughout downtown. - ;�. .ilk- Families, friends, and visitors can engage with local ,401ii:t #'. , __ s ',• •• '�' •�; ry community partners while taking part in a variety of activities, „ ,j f including the highly anticipated Main Street costume contest. Adding to the excitement, the pet costume contest showcasing F' �, -,, / an impressive lineup of creatively dressed pets and their j equally enthusiastic owners. } '' Downtown businesses help make the event extra special by 1611116 providing candy and treats, creating a welcoming and spirited environment for all ages. MAGIC ON MAIN STREET NOVEMBER 12, 2025 + � ` . t•L�• Magic on Main Street is the annual tree lighting celebration a* i/ that marks the start of the holiday season at Surf City Nights. -_-'-"a a.; , ��;� The community gathered for an exciting countdown to illuminate :,, the Main Street Christmas tree, enhanced this year by the ir '0, ; ' 4. addition of festive snowfall. Holiday cheer filled the street with �.� live music, unique vendors, and a special appearance by Santa P + • , .� �� and his elves. ,y ,.4 ''" The event also coincided with Small Business Saturday, 4,'[� ` _ . highlighted by a proclamation from City, County and State y!�- `, .`y leaders, alongside the Chamber of Commerce, encouraging p`J� .1:1-* `:Ns'� '.M. support for local businesses. 2026-2027 ANNUAL REPORT PAGE 11 DOWNTOWN COMMUNITY EVENTS MAIN STREET BLOCK PARTY September 27,2025 Downtown Huntington Beach is a proud sponsor of the Main Two ." � Street Block Party on Saturday, July 4th. A tradition of ma ;` c Independence Day festivities, the event featured live music by the , ra. 1 '• i • (''•,':>..• Ramsey Brothers Band and Redneck Rodeo. z' :"`'''t'`� _• , The highlight of the Block Party was the new vintage car show. This year `° " To: the Bike Parade peddled off from Huntington Beach City Hall down Main y++,_. ,^ N ' Street to PCH and Main Street on July 5th. The spirit of Independence . Day was displayed on many bikes. Event is funded thorugh Downtown Huntington Beach. SURF CITY DAY September 27, 2025 .' —, Along with the International Surf Museum, the Vintage Surfboard _ , Collector Club, and Rockin' Fig, locals and visitors come together to "� h.. celebrate the vibrant culture of Surf City USA at this exciting community event. Event highlights include: k4 —41:04, Fun vendors and family friendly activities ` Kowabunga Van Klan Bus Show '&4 1 -lc", Event is funded thorugh Downtown Huntington Beach. CHILI AT THE BEACH August 23,2025 'f4. The annual Chili at the Beach heated up Main Street! Guests enjoyed a day t .41'_ -a ..,,.. ~-�,,. of flavor and fun as chili contestants showcase their best recipes. '? A _ -.:,.T., u_ Guests sampled a variety of chili entries and vote for their favorites, [,I _, featuring local vendors and dedicated charity partners who help make this its beloved event a true community tradition. Event is funded thorugh Downtown Huntington Beach. 2026-2027 ANNUAL REPORT PAGE 12 IMPROVEMENTS AND ACTIVITIES The following are recommendations from the Advisory Board on the expenditure of revenues derived from the levy of assessments, estimated to total $115,000 for FY 2026-2027: AMBASSADOR PROGRAM $35,000* ENHANCED MAINTENANCE $21,000** HOLIDAY BEAUTIFICATION $25,800.00 MARKETING $10,000.00 COMMUNITY EVENTS $18,000.00 CRM $3,000.00 FINANCIAL SERVICES $2,200.00 *Total contract for Ambassador Services is $93,500: $40,000 (VHB), $35,000 (Assessment) and $18,500 (Downtown Huntington Beach). ** Total contract for Malco Maintenance is $248,590: $21,000 (Assessment); $ 220.000 (Public Works), $7,500 Downtown Huntington Beach) for Special Events (Independence Day Events, Air Show, US Open). (Does not include SCAF or SCN) • 2026-2027 ANNUAL REPORT PAGE 13 2026-2027 ACTIVITIES AND IMPROVEMENTS AMBASSADOR PROGRAM The Ambassador Program is designed to build positive relationships and maintain a visible presence among business owners, patrons, and visitors in Downtown Huntington Beach during weekends, holidays, and special events. Its goal is to create a safe, welcoming environment where all visitors can enjoy their time downtown. Ambassadors communicate through a coordinated WhatsApp network that includes restaurant and bar managers, owners, and security personnel, ensuring quick and effective information sharing. Funded by BID Assessments and Visit Huntington Beach, the program has proven to be a valuable asset to the Downtown District.Ambassadors actively contribute through: • Regular Patrolling - Maintaining a consistent presence while engaging with the community • Observation and Reporting - Identifying and reporting safety concerns, disturbances, and incidents • Collaboration with HBPD - Working closely with the Huntington Beach Police Department (Downtown Detail)to address safety matters • Assistance and Guidance - Supporting visitors by providing directions, answering questions, and recommending local attractions The Ambassadors'commitment to safety, community engagement, and strong collaboration with HBPD has enhanced the overall experience and strengthened the positive image of Downtown Huntington Beach. ENHANCED MAINTENANCE Downtown Huntington Beach is a vibrant destination for both residents and visitors, particularly during peak seasons and major events. To maintain a clean and welcoming environment, proactive measures are taken to supplement standard City services. Funding is allocated for additional maintenance support during high-traffic periods and to bridge the gap between the City of Huntington Beach MOU and current service needs. Enhancements this year include: • Expanded steam cleaning services • Daily porter services, seven days a week • Full coverage of the BID Assessment area by Malco These efforts ensure a consistently clean, safe, and enjoyable environment, reinforcing Downtown Huntington Beach as a premier destination. HOLIDAY BEAUTIFICATION During the holiday season, Downtown Huntington Beach is transformed with festive lighting and illuminated snowflakes along Main Street. The centerpiece is the decorated Christmas tree located on the second block of Main Street, serving as a focal point that brings the community and visitors together to celebrate the season. The holiday theme is"beach-themed"holiday design, expanding enhancements to include 6th Street and the fourth block of Main Street—further elevating the holiday experience throughout the district. 2026-2027 ANNUAL REPORT PAGE 14 2026-2027 ACTIVITIES AND IMPROVEMENTS MARKETING Marketing and events play a critical role in promoting and shaping the identity of the Downtown District. Through a strategic, multi-channel approach—including digital communications and community programming—we effectively engage stakeholders and strengthen the brand of Downtown Huntington Beach. Assessment fees support a range of marketing initiatives, including the website, social media, and email outreach. To further enhance these efforts, a new Social Media Consultant was retained to expand reach, engagement, and overall marketing effectiveness. COMMUNITY EVENTS Signature community events such as the Independence Day Block Party, Surf City Spooktacular, and Magic on Main Street have become highly anticipated annual traditions. These events: • Increase visibility and foot traffic • Create memorable experiences for attendees • Strengthening community engagement • Enhance the Downtown Huntington Beach brand To further support year-round activity, Downtown Huntington Beach added Sweet on Main and Burgerfest to encourage residents and visitors to try our restaurant offerings. An event on 5th Street will be added. CRM The Huntington Beach City Council recommended that the BID adopt a Customer Relationship Management (CRM) system to support long-term organizational success and stakeholder engagement. Key benefits of CRM implementation include: Centralized Data Management - Consolidates contact information, communication history, and key stakeholder details into a single, up-to-date system Improved Stakeholder Relationships - Enables a deeper understanding of stakeholder needs and preferences, allowing for more personalized engagement Targeted Marketing Campaigns - Supports tailored messaging to specific audience segments, increasing engagement and overall effectiveness The CRM platform strengthens operational efficiency and allows for a more proactive, strategic approach to communication. FINANCIAL SERVICES Financial operations are supported through monthly services provided by a third-party CPA, along with bank management and QuickBooks integration. These systems have streamlined processes, improved financial accuracy, and enhanced transparency in reporting. 2026-2027 ANNUAL REPORT PAGE 15 2026-2027 BUDGET REVENUE SOURCES City Assessment All businesses located within the District boundary pay a nominal fee from $80.00 to $1,404.00 when the business is established and annually with the Business License renewal. The Assessments raised are used to benefit the full District. Traditionally during the last five years, the District has used the funds for the Ambassador Program, Enhanced Maintenance (Malco), Holiday Beautification, Marketing, Community Events (Spooktacular, Miracle on Main), Financial Services, CRM (a Consumer Relationship Management Program) and funds rolled over, a Public Improvement Project, based on input of the City Council, which is the Z Park Lighting. The current estimation of Assessment fees for 2026/2027 is $115,000. In addition, Visit Huntington Beach (VHB) contributes $40,000 to Ambassador Services. HB Downtown (Non-Profit) A majority of the expenditures for the operations of the Downtown HB and HB Downtown are from the HB Downtown budget. The funding sources include Surf City Artisan Fair (SCAF), Surf City Nights (SCN), and potential sponsorships. Expenditures include office rent, insurance, accounting/legal, printing, Contractors/consultants for Executive Director, Administrative Assistant, social media, SCAF and SCN Managers, office, repairs, telephone/internet. The budget will be adopted by the HB Downtown Board and presented to the City of Huntington Beach City Council. It has been increased due to the requirement for HB Downtown to pay a portion of benefits for the consultants. Maintenance/Malco The City's Public Works department and Downtown Huntington Beach have an ongoing maintenance agreement. The initial Memorandum of Understanding (MOU) was established in 2013. The costs associated with the maintenance contract have surpassed the originally stipulated amount in the MOU. To address these supplementary expenses, the Public Works department requested additional funding and the BID has increased funding. The designated funds are earmarked for specific purposes related to enhanced maintenance and porter services for. These funds can be utilized to bridge the gap between the actual maintenance expenses and the amount specified in the existing MOU. Reserves/SBA Loan/Contingency In October 2020 the BID Board of Directors applied for an EIDL loan, which was awarded in the amount of$150,000 which was awarded and received on Dec. 31, 2020. In June 2021, the Board applied for an additional $45,300. The Board placed $50,000 in the BID's Main Account for use as operating capital. The additional $145,300 was placed in the Reserve account to meet minimum funding requirements. The Loan was applied for, due to SCN's and SCAF both being cancelled due to COVID and the BID was challenged for revenue. The loan was provided with a 2.75% interest rate. The loan will need to be repaid and staff is working with the IRS on repayment plans 2026-2027 ANNUAL REPORT PAGE 16 2026-2027 BUDGET Downtown Huntington Beach Budget 2026-27 REVENUE Downtown HB Assessment $115,000.00 Visit Huntington Beach $40,000.00 Public Works(Malco) $220,000.00 SCN/SCAF $595,000.00 Events. $12,500.00 Parking 57,000.00 Estimated Carry-Over`' 555,000.00 TOTAL 51,044,500.00 Expense Downtown HIS Assessment $115,000.00 Visit Huntington Beach $40,000.00 Public Works(Malco) $220,000.00 Ambassadors $18,500.00 Masco•Special Events $7,500.00 Consultant Services.•• $150,000.00 Accounting/Legal/Bank/Fees $27,000.00 Rent(Office/Storage) $19,000.00 Office Supplies/Repairs&Maint. $4,000.00 Insurance.Licenses&Fees $5,500.00 Meeting/Training $2,500.00 Board Elections $1,500.00 Dues/Subscriptions $1,500.00 Telephone/Internet $4,500.00 Events $3,000.00 Printing $2,000.00 Parking(SCN/SCAF) $8,000.00 SCN Event Management $90,725.00 Logistics $12,970.00 Marketing/Entertainment $4,850.00 JCL Traffic Control $64,400.00 State County Fees $9,450.00 Free Parking Passes $300.00 Malco $36,360.00 $219,055.00 SCAF A Event Management $70,865.00 Logistics $8,554.00 Facility Fee $57,850.00 Malco Maintenance(set up) $14,3S0.00 Security $29,050.00 Marketing/Entertainment $4,850.00 $185,519.00 TOTAL $1,034,074.00 •Sod ON D .Chili a the Beach,Sweet on Sod City,Burger Bah,et. ••eased an lure Financials ••-tact.Dir,Admin Asa,Socsal Media a Assumption that DNB wrg continue to operate the SCAT A surplus of approximately $2,000 in BID assessments is anticipated to be carried over from the previous year. 2026-2027 ANNUAL REPORT PAGE 17 ASSESSMENT PROCESS The District's Advisory Board, Downtown Huntington Beach, is required to prepare an annual report to be submitted to the Huntington Beach City Clerk. The annual report contains a proposed work plan, a detailed budget for the upcoming year, a summary of accomplishments, and the following information: • Proposed changes in the boundaries of the parking and business improvement areas or in any of the benefit zones within the area in FY 2026-2027 (no proposed changes) • Improvements and activities to be provided for FY 2026-2027 (to be determined) • The cost of providing improvements and the activities for FY 2026-2027 (page 11) • Method and basis of levying the assessment for FY 2026-2027 (page 5&6, under BID Member Overview and Assessment Chart) • Amount of any surplus or deficit revenues to be carried over from previous year (approximately $2,000) • Amount of additional contributions to be made from sources other than assessments (under Budget) The annual assessment process requires City actions, including two City Council meetings, where the City Council must adopt resolutions approving the assessment for the upcoming year. 1st City Council Meeting (Tuesday, September 1, 2026) • Presentation of the FY 2026-2027 Annual Report and proposed budget and action by Council on a Resolution of Intention to levy assessments Public Notice • Publish Resolution of Intention to Levy an Annual Assessment in a newspaper(at least 7 days prior to the public hearing) 2nd City Council Meeting (Tuesday, October 6, 2026) • Public hearing on the annual assessment and to receive protests against levy of assessments and Council action confirming the levy of assessments At or before the public hearing, all members of the District and public are welcome to protest the annual assessment. Each protest vote is weighted based on the amount of the assessment paid by the business. If the City receives written protests totaling 50% or more of the total assessment, the assessment will not be levied for that year. Even if there is not an assessment for a particular year, the Downtown BID remains, and the annual process to levy the assessment will start over in the next year. wca 2026-2027 ANNUAL REPORT PAGE 18 PUBLIC HEARING PROCESS How can I provide Public Hearing Comments For or Against the Assessment? At the annual public hearing, all members of the District and the public are welcome to speak to the City Council regarding the annual assessment. A protest against the levy assessment may be: • made orally or in writing • made at the public hearing; however, in order to count in calculating whether businesses paying 50% or more of the proposed assessments are against the assessment, a protest must be in writing and received before the public hearing Each written protest must be received by the City Clerk no later than the public hearing. Written protest against the benefit assessments to be levied may be: • mailed to the City Clerk of the City of Huntington Beach at 2000 Main Street, Huntington Beach, California 92648 • emailed to juan.esquivel@surfcity-hb.org (Assistant City Clerk) with the subject line: Downtown BID Assessment Protest submitted to the City Clerk before the public hearing Each written protest must be filed by an owner of a business located within the District and signed by the person shown on the official records of the City as being the owner or designated agent of that business. For purposes of District protests,the"official records"of the City are the City business license database. If the person signing the protest is not shown on the official records of the City of Huntington Beach as the owner of the business,then the protest shall contain or be accompanied by written evidence that the person is the "designated agent"for the corporation or entity. A written protest may be withdrawn from record at any time before the conclusion of the public hearing. If there are a large number of written protests submitted on a timely basis,the City Council has the option to close the public hearing and then continue the matter to its next regularly scheduled meeting to allow for a thorough counting of the submitted written protests. If written protests have been timely submitted by the owners of the businesses within the District that will pay fifty percent (50%) or more of the total assessments of the entire District, then no further proceedings to levy the assessments shall occur for the FY 2024-2025 year and any new proceedings to levy assessments shall not be undertaken again for a period of at least one(1)year from the date of the finding of the 50%or more written protest by the City Council. If the 50% or more written protest is only as to an improvement or activity proposed in the annual report, then that type of improvement or activity shall not be included in the upcoming year. 2026-2027 ANNUAL REPORT PAGE 19 ,....., Aktatimitittruvittarr4 BOARD OF DIRECTORS ► . . r 1 RAND COMMITTEES 1 P,it, v t , b 3_ EXECUTIVE COMMITTEE 2025-2026 COMMITTEES President: Kari Ivey, Second Floor Ad-Hoc Bylaws Committee: Treasurer: Stephany Smith, Mane Kharacter o Nicole Llido, Stephany Smith Secretary: Darrick Hearn, Sandy's Beach Shack Finance & Governance Committee: o Kari Ivey, Darrick Hearn, Stephany Smith BOARD OF DIRECTORS o Nominating Committee: Gustavo Cruz, Fred's Cantina o Stephanie Wilson Donnie Lancaster, Sancho's Tacos Ad-Hoc Surf City Nights/Artisan Fair Wing Lam, Wahoo's Fist Tacos o Committee: Kari Ivey, Darrick Hearn, Stephany Smith Nicole Llido, Visit Huntington Beach Outreach Committee: Darrick Hearn Special Events Committee: Stephany Smith, Wing Lam For additional information and comments, please contact: HB Downtown at (714)-536-8300 Email: info@hbdowntown.com Website: www.HBDowntown.com ,R1YEMF�f 2026-2027 ANNUAL REPORT PAGE 20 Reso No.2026-26 Exhibit "B" Exhibit B : Map of the District, Assessment Schedule, and Businesses to be Assessed Reso No. 2026-26 Exhibit "B" DISTRICT BOUNDARY MAP FY 2025-2026 „, ..., ... s, e� e. 'IN s. o,4. r.ankfort Ave 4 a o O�. Whm,sMd 0,1, y o m s ,5, Mdr •et Elmirl Are; * a » .§ rr,0` 2 e 'w E H' • n o 0 w CaY Ln e� tf k.' oebo-1 AreL I �lue Fm //k, II tla.r.ny Pia ! I 2 . cp,,.. LMr.atip Are Nbma+d o f - c Shefl CO _ '.i� ear or i u �' '•f' q e ealtrmpre Are 2 3 1'` '4 2 1 Q e uCF.BeacpmtaM Or f I v. y9 Apante Ave e _ll m vyau'rtag Cn 7.,{1[t ,`g o 7. x t 4 -'grow at!c,} rt A In a i �� 4' sr,.. t *a" %Inmost oe aSpumwrhd cn i t�:' a sCSt I" O 5t Sagpnet 161'"^".4r C,r Cif 161'"^".4ra E 51 L / ". 5: /' r 51 Swamret and ; ' el C P+er 'Left**,Cr .. A.,,,,,,, Coo'I 4 r`. ¢per e~a ig H r b air y 2 ,F r 4 �0 v /re Huntington Beach Downtown Business Improvement District z Boundaries and Benefit Zones 1 & 2 ASSESSMFMT IfPMI I1 jr2 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 BUSINESSES TO BE ASSESSED FY 2026 - 202 1 LOOK VINTAGE 1 OZ COFFEE 221 N MAIN STREET BEACH PROPERTIES LLC 25 DEGREES 2ND FLOOR FAD 602 COFFEE HOUSE AAA POSTMART LLC ADVENTURE INC ALOHA GRILL ALUMA MEDICAL AESTHETICS AMAZONIA BOWL AMBIT CONSULTING LLC AMERICAN VINTAGE ANDE'S PERUVIAN ARTS AND CRAFTS (CT) APPE IZAKAYA ATM GLOBAL INCORPORATED B 1'S RESTAURANT & BREWHOUSE ATTN: LICENSING B L K EARTH SEA SPIRITS BALLANCED AESTHETICS LLC BANZAI BOWLS BARE BUNNY AESTHETICS BASKIN ROBBINS #362100 BEACH ISLAND BEAUTIFIED BY BEEZ BEAUTY BOX BEAUTY BUNGALOWS BY PORCELAIN BOBASAUR BOGGELN & COMPANY CPA BONDI BOWLS BREEZA BREWSTER'S ICE BRIGHTWATERS WINE BAR LLC BROAD STREET OYSTER COMPANY SURF CITY BRUNO'S BAR & GRILLE LLC BURT'S BURGERS C NEW LAND DESIGN CENTER CA ACCESSORIES LLC CAL IT GROUP CALI SHORE STORE CALIFORNIA CLOTHING CALIFORNIA CURATED CAPITAL INVESTMENT NETWORK INC CENTER FOR ORAL HEALTH CHAMPAGNES KITCHEN CHARLIE'S GYROS COACH'S MEDITERRANEAN GRILL COASTLINE REAL ESTATE INVESTMENTS LLC COLDSTONE CREAMERY COLDWELL BANKER ENVISION COMPASS CONTINENTAL 1 HOUR CLEANERS CORREA & ASSOCIATES CRUISERS PIZZA BAR GRILL CUCINA ALESSA HB CVS/PHARMACY #819 D3O DAIRY QUEEN DARE ME BIKINI DENTAL URGENT CARE DIANE'S BIKINIS DIRTY DOG WASH DUKE'S DWIGHT'S BEACH CONCESSION EARTHS ELEMENTS EL DON LIQUOR EUROPA NAIL STUDIO EXCELL LUXE LAB F H A REVIEW F45 DOWNTOWN HB FOUR SONS BREWING FRED'S MEXICAN CAFE FREIGHTSAVER.COM FUSION HOME LOANS LLC GALITZEN PROPERTIES GRUPO GALLEGOS G'S BOATHOUSE HABACHIHANA GRILL HAIR BY J ESSI E LU HANDEL'S HUNTINGTON BEACH HAPPY BODY WELLNESS HB SPEED SHOP HB STRENGTH CO HEADLINER HEADSPA HB HORN HOLISTIC HEALTH HOT SPOT PIZZA HQ GASTROPUB HUNTINGTON BEACH BEER COMPANY HUNTINGTON BEACH EASY RIDER, DANK CLOTHING HUNTINGTON BEACH REALTY HUNTINGTON SURF & SPORT HUNTINGTON SURF AND SPORT HURRICANES BAR & GRILL IMAGINCY INFINITYU INIS THE ENERGY OF THE SEA INNOCEAN WORLDWIDE AMERICAS INNOCEAN WORLDWIDE AMERICAS LLC INVESTMENT BUILDERS LLC IPA 1031 GROUP LLC IRON FOUNDATION J&W / THE X GENE ALPHARISE J & J COASTAL LENDING JACK'S BEACH CONCESSION JACK'S SURFBOARDS JAN'S HEALTH BAR JAX BICYCLE CENTER JAY BIRD'S JOLIE & THE BELLE JPG Inc. dba Oak Leaf Productions KILLARNEY'S KING LOU PETS KITE CONNECTION C/O DAVE SHENKMAN KOKOMOS SURF SIDE KUO JESSICA LA MOME SPA LATINA BEAUTY BAR LAURENS WELLNESS LE HOTEL LLC LOCAL MOTION INC LONGBOARD RESTAURANT & PUB LUNA UNITED M E HELME HOUSE FURNISHING CO MAHKIN N THAI & SUSHI MAILBOX STATION MAIN ST BARBERS MAIN ST LIQUOR MARKET MAIN STREET CLEANERS MAIN STREET HAIR COMPANY MAIN STREET OPTICAL & BOUTIQUE MAIN STREET WINE COMPANY MAKIN WAVES SALON MAMA ON MAIN MANE KHARACTER MANGIAMO GELATO MILK AND HONEY HB MODEL CITIZEN MODERN PARKING INC MONTGOMERY JEWELERS MYSTIC BOX LLC NEIRA DESIGNS & FIX-IT ETC NESTOR SOLUTIONS LLC NO KA O I NORTH SHORE POKE CO OC BARBERS EXECUTIVE STUDIO OC SKIN & SUGAR ODDBYTES LLC ONLY IN CALIFORNIA GENERAL STORE PACIFIC COAST ARCHITECTS PACIFIC RIM TAX & ACCOUNTING PACIFIC SOTHEBY'S INTERNATIONAL REALTY PALADIN LEGAL DEFENDERS PARKING CONCEPTS INC PARLOR DOUGHNUTS PERQS NIGHTCLUB & SPORTSBAR PETE'S MEXICAN FOOD PHO BULOUS PHOTO HOUSE INC PIERSIDE COMMISSARY PLAYGROUND MINI GOLF POLY CONSULTING INC PORCELAIN HAIR STUDIO / PORCELAIN HAIR EXTENSIONS PREMIER CUSTOMS BROKERS INC PRIMECUT TAQUERIA INC PURE BLISS MAIN STREET DAY SPA R M A INTERNATIONAL LANDSCAPE ARCHITECTURE & PLAN REAL THAI FOOD RED PERSIMMON NAILS & SPA RENOWNED RECRUITMENT GROUP LLC RIO MEDIA INC RIP CURL SURF CENTER RIPCORD DIGITAL INC ROBERT KOURY PROPERTIES ROCKIN FIG SURF SHOP ROCKY MOUNTAIN CHOCOLATE FACTORY RY'S POKE SHACK SAIL PROPERTIES INC SAINT SAL LABS SALON RETRO SALT HAIR LOUNGE SALTY FOR EVER SAM PA'S PIZZA CAFE SANCHO'S TACOS SANDBAR COCINA Y TEQUILA SANDY'S BEACH SHACK SAUL & CO HOME SERVICES SCHELIN ULDRICKS & CO SENSE OF BALI SESSIONS WEST COAST DELI SHABU ON FIRE SHARKEEZ SHOREBREAK HOTEL SKIN AMENITIES SMILES CAFE SMOKERZ LAND 3 SMOKE SHOP SOUTHNORTE BEER CO SPEEDY CREDIT REPAIR INC STARBUCKS COFFEE #575 STEWARDSHIP WEALTH MANAGEMENT SOLUTIONS STILL NOVEL STUDENT LOAN RESOURCE GROUP SUBCULTURE SANDWICH SHOP SUGAR CABANA SUGAR SHACK CAFE SUITE INSPIRATION SUNGLASS HUT #F557 SUNWEST REALTY SUR COFFEE SURF CITY CHIROPRACTIC SURF CITY MARKET SURF CITY STORE SURGICAL REPUBLIC SUSHI NIGIRIBA SUSHI ON FIRE T K BURGERS T R RANCH SERVICES LLC TACOS LOS CHOLOS TAI SOFTWARE TEXT KEVIN ACCIDENT ATTORNEYS THAI WAVE THE BEAUTOX PLACE THE BELLADONNA THE BLOW DOWN LLC THE CHEMISTRY LOUNGE SALON THE FOCACCIA HOUSE LLC THE FUNNEL HOUSE THE HOUSE SALON THE IRISHMAN THE RIA PIZZERIA THE SKINN LAB THE UPS STORE 7820 TOP DOG BARKERY BATH & BOUTIQUE UNCLE FLUFFY UNIT K TATTOO WAHOO'S FISH TACO WATERFRONT BEACH CABANA WAVES WEAVER CONSULTING GROUP LLC WESTLAND BUSINESS SERVICES INC WINDHORSE ZACKS PIER PLAZA ZACKS TOO ZEPHYR BARBERSHOP ZERO ZERO PIZZERIA ZIGGYS ON MAIN ZIMBABWE HB GIFTS & ACCESSORIES (CT) Reso No. 2026-26 Exhibit "C" Exhibit C: Improvements and Activities Reso No. 2026-26 Exhibit "C" IMPROVEMENTS AND ACTIVITIES The following are recommendations from the Advisory Board on the expenditure of revenues derived from the levy of assessments, estimated to total $115,000 for FY 2026-2027: AMBASSADOR PROGRAM $35,000* ENHANCED MAINTENANCE $21,000** HOLIDAY BEAUTIFICATION $25,800.00 MARKETING $10,000.00 COMMUNITY EVENTS $18,000.00 CRM $3,000.00 FINANCIAL SERVICES $2,200.00 *Total contract for Ambassador Services is $93,500: $40,000 (VHB), $35,000 (Assessment) and $18,500 (Downtown Huntington Beach). ** Total contract for Malco Maintenance is $248,590: $21,000 (Assessment); $ 220.000 (Public Works), $7,500 Downtown Huntington Beach) for Special Events (Independence Day Events, Air Show, US Open). (Does not include SCAF or SCN) 2026-2027 ANNUAL REPORT PAGE 13 2026-2027 ACTIVITIES AND IMPROVEMENTS AMBASSADOR PROGRAM The Ambassador Program is designed to build positive relationships and maintain a visible presence among business owners, patrons, and visitors in Downtown Huntington Beach during weekends, holidays, and special events. Its goal is to create a safe, welcoming environment where all visitors can enjoy their time downtown. Ambassadors communicate through a coordinated WhatsApp network that includes restaurant and bar managers, owners, and security personnel, ensuring quick and effective information sharing. Funded by BID Assessments and Visit Huntington Beach,the program has proven to be a valuable asset to the Downtown District. Ambassadors actively contribute through: • Regular Patrolling - Maintaining a consistent presence while engaging with the community • Observation and Reporting - Identifying and reporting safety concerns, disturbances, and incidents • Collaboration with HBPD - Working closely with the Huntington Beach Police Department (Downtown Detail)to address safety matters • Assistance and Guidance - Supporting visitors by providing directions, answering questions, and recommending local attractions The Ambassadors'commitment to safety, community engagement, and strong collaboration with HBPD has enhanced the overall experience and strengthened the positive image of Downtown Huntington Beach. ENHANCED MAINTENANCE Downtown Huntington Beach is a vibrant destination for both residents and visitors, particularly during peak seasons and major events. To maintain a clean and welcoming environment, proactive measures are taken to supplement standard City services. Funding is allocated for additional maintenance support during high-traffic periods and to bridge the gap between the City of Huntington Beach MOU and current service needs. Enhancements this year include: • Expanded steam cleaning services • Daily porter services, seven days a week • Full coverage of the BID Assessment area by Malco These efforts ensure a consistently clean, safe, and enjoyable environment, reinforcing Downtown Huntington Beach as a premier destination. HOLIDAY BEAUTIFICATION During the holiday season, Downtown Huntington Beach is transformed with festive lighting and illuminated snowflakes along Main Street.The centerpiece is the decorated Christmas tree located on the second block of Main Street, serving as a focal point that brings the community and visitors together to celebrate the season. The holiday theme is"beach-themed"holiday design, expanding enhancements to include 6th Street and the fourth block of Main Street—further elevating the holiday experience throughout the district. 2026-2027 ANNUAL REPORT PAGE 14 2026-2027 ACTIVITIES AND IMPROVEMENTS MARKETING Marketing and events play a critical role in promoting and shaping the identity of the Downtown District. Through a strategic, multi-channel approach—including digital communications and community programming—we effectively engage stakeholders and strengthen the brand of Downtown Huntington Beach. Assessment fees support a range of marketing initiatives, including the website, social media, and email outreach. To further enhance these efforts, a new Social Media Consultant was retained to expand reach, engagement, and overall marketing effectiveness. COMMUNITY EVENTS Signature community events such as the Independence Day Block Party, Surf City Spooktacular, and Magic on Main Street have become highly anticipated annual traditions. These events: • Increase visibility and foot traffic • Create memorable experiences for attendees • Strengthening community engagement • Enhance the Downtown Huntington Beach brand To further support year-round activity, Downtown Huntington Beach added Sweet on Main and Burgerfest to encourage residents and visitors to try our restaurant offerings. An event on 5th Street will be added. CRM The Huntington Beach City Council recommended that the BID adopt a Customer Relationship Management (CRM) system to support long-term organizational success and stakeholder engagement. Key benefits of CRM implementation include: Centralized Data Management - Consolidates contact information, communication history, and key stakeholder details into a single, up-to-date system Improved Stakeholder Relationships - Enables a deeper understanding of stakeholder needs and preferences, allowing for more personalized engagement Targeted Marketing Campaigns - Supports tailored messaging to specific audience segments, increasing engagement and overall effectiveness The CRM platform strengthens operational efficiency and allows for a more proactive, strategic approach to communication. FINANCIAL SERVICES Financial operations are supported through monthly services provided by a third-party CPA, along with bank management and QuickBooks integration. These systems have streamlined processes, improved financial accuracy, and enhanced transparency in reporting. 2026-2027 ANNUAL REPORT PAGE 15 Res. No. 2026-26 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, LISA LANE BARNES, 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 1, 2026 by the following vote: AYES: Gruel, Kennedy, Twining, Burns, McKeon, Van Der Mark, Williams NOES: None ABSENT: None ABSTAIN: None r-- City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California