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HomeMy WebLinkAboutApprove the Huntington Beach Downtown Business Improvement D (2) 0NIINGTp 2000 Main Street, o� a 4 ��4,a Huntington Beach, CA City Huntington of Huntin ton Beach � APPROVED 7-0 C�COONry cay;c°�, File #: 26-731 MEETING DATE: 10/6/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Christopher Kennedy, Economic Development Project Manager Subject: Public Hearing to Adopt Resolution No. 2026-27 Approving the Annual Assessment for the Huntington Beach Downtown Business Improvement District for Fiscal Year (FY) 2026-27 Statement of Issue: On September 1, 2026, the City Council adopted Resolution No. 2026-26 declaring its intention to levy an annual assessment for the Huntington Beach Downtown Business Improvement District (District) and scheduled a public hearing for October 6, 2026. Each business within the District is charged an annual fee, which the City collects and distributes to fund services that go beyond the City's standard baseline services for this area. The City Council is now requested to conduct the public hearing and consider adopting Resolution No. 2026-27 to approve the FY 2026-2027 assessment. Financial Impact: The District's FY 2026-27 budget, submitted by Downtown HB, includes projected revenues of $1,044,500 of which $115,000 is expected from business assessments. The remainder will come from other revenue sources such as events and sponsorships. The City's FY 2026-27 Operating Budget (Fund 710: Huntington Beach Downtown Business Improvement District Fund), includes $128,000 in revenue and matching expenditures related to District activities. Recommended Action: A) Conduct the Public Hearing; and, B) If written protests from businesses representing 50% or more of the total assessment are not received, adopt Resolution No. 2026-27, "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 2026-27." City of Huntington Beach Page 1 of 4 Printed on 9/30/2026 powered by LegistarT" 23 File #: 26-731 MEETING DATE: 10/6/2026 Alternative Action(s): The City Council may amend elements of the Annual Report, such as fees, activities, improvements, or district boundaries and update the Resolution accordingly. However, the City Council may not increase assessments or expand district boundaries as part of this action. If written protests are received from business owners representing more than 50% of the total assessment value, the City Council may not approve the Resolution. Analysis: Background The Huntington Beach Downtown Business Improvement District (District) was created in 2004 to support services that enhance the downtown area, such as safety, marketing, and maintenance, beyond the City's baseline levels. In 2008, the City Council appointed Downtown HB, a nonprofit formed by local businesses, as the District's Advisory Board. The Advisory Board makes annual recommendations regarding the use of District funds and any proposed changes to assessment amounts or District boundaries. The City Council reviews and considers these recommendations through a public meeting. The City and Downtown HB operate under a formal agreement that outlines their roles in managing the District. Downtown HB is responsible for managing collected funds and ensuring they are used exclusively to benefit the businesses in the District. Annual Report & FY 2026-27 Assessment Budget For the upcoming fiscal year, Downtown HB's goals include reestablishing and restructuring the nonprofit, strengthening member communication and engagement through monthly newsletters and welcome packets, creating quarterly opportunities to connect with the Board of Directors, and developing a donation package to support Downtown HB and special events. Together, these efforts are intended to strengthen Downtown HB's organizational capacity, increase business engagement, and support a vibrant and welcoming Downtown for businesses, residents, and visitors. The Annual Report outlines the Advisory Board's recommendations for the use of $115,000 in proposed assessment revenue, which is allocated to programs and services that directly benefit businesses within the District. Additional Downtown HB activities and expenses are supported by non -assessment revenue sources. The Advisory Board recommends the following allocation of$115,000 in assessment revenue: • Ambassador Security Program - $35,000 (30%) - Assessment funds will support a portion of the Downtown ambassador program, with additional contributions from Visit Huntington Beach (VHB) and Downtown HB. The program provides a visible presence in the Downtown area, supports early reporting of issues to the Huntington Beach Police Department, and assists with visitor and business needs. City of Huntington Beach Page 2 of 4 Printed on 9/30/2026 powered by LegistarT" 24 File #: 26-731 MEETING DATE: 10/6/2026 • Holiday Beautification - $25,800 (22%) - Assessment funds will support holiday decor and enhancements, including aerial displays, themed lighting, and a decorated tree on Main Street. Plans for the upcoming holiday season include a beach-themed design and expanded decorations through the fourth block and onto 5th Street. • Enhanced Maintenance - $21,000 (18%) - Assessment funds will support enhanced maintenance services, including daily porter coverage, expanded steam cleaning during high- traffic periods, and additional porter services during holidays and major events. These services supplement City-funded maintenance services. • Community Events - $18,000 (16%) - Assessment funds will support community events such as the Halloween celebration, Tree Lighting, July 4th Block Party sponsorship, and a new off- season community event. These activities provide opportunities for community engagement and exposure for Downtown businesses. • Marketing - $10,000 (9%) - Assessment funds will support a portion of social media consultant costs and other marketing efforts focused on promoting Downtown HB and communicating with stakeholders. • CRM Software - $3,000 (3%) - Funding will support the organization's customer relationship management system, which centralizes stakeholder information and facilitates communication and outreach. • Financial Services - $2,200 (2%) - Funding will support third-party accounting services, including monthly financial reporting and bank management. The proposed FY 2026-27 budget totals $1,044,500, representing an increase of $72,055 from the prior fiscal year (Annual Report, Page 19). This overall organizational budget includes the $115,000 in proposed business assessment revenue, as well as revenue from other sources, including the Surf City Artisan Fair, Surf City Nights, and the City's contribution toward maintenance services. Downtown HB's Board of Directors manages the organization's overall budget, including non- assessment revenue and related expenses. The organization previously maintained unallocated reserves to provide flexibility for future needs. During the current year, a significant portion of these reserves was allocated toward outstanding financial obligations, including the U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) and certain Employment Development Department (EDD) and Internal Revenue Service (IRS) fees, substantially reducing the organization's outstanding debt. District Renewal The submitted Annual Report includes the following information: 1. No changes to the District's boundaries or benefit zones; 2. A list of planned improvements and estimated costs; 3. The method used to calculate each business's assessment; 4. Any surplus or deficit from the prior fiscal year; and 5. Revenue sources beyond business assessments. Approximately 255 businesses currently pay annual assessments ranging from $80 to $1,404, plus a City of Huntington Beach Page 3 of 4 Printed on 9/30/2026 powered by LegistarT" 25 File #: 26-731 MEETING DATE: 10/6/2026 $12 processing fee. There are no proposed changes to the assessment formula or District boundaries for FY 2026-27. Business owners may submit written protests if they oppose the proposed assessment. Protests must be submitted by the business owner or their designated agent as shown in City records. Protests may be withdrawn at any time before the close of the public hearing. If written protests representing 50 percent or more of the total assessments are received, the City Council may not proceed with the levy of assessments for FY 2026-27. If protests pertain only to a specific service or activity, such as holiday decorations, that activity must be removed from the budget. The City Council may also disestablish the District by ordinance following a public hearing, provided that a resolution of intention to disestablish is adopted prior to the hearing. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. Resolution No. 2026-27 Exhibit A: Annual Report and Proposed Budget for FY 2026-2027 Exhibit B: Boundary Map, Business List and Assessment Schedule Exhibit C: Improvements and Activities Proposed to be Funded 2. PowerPoint Presentation City of Huntington Beach Page 4 of 4 Printed on 9/30/2026 powered by Legistarr^' 26 RESOLUTION NO. 2026-27 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT WITHIN TIIE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2026-2027 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 2026-2027 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 2026-2027"(collectively, "Annual Report"); and On September 1, 2026, the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2026-2027 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 confirms, 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 2026-2027 and a description of the improvements and activities to be provided for Fiscal Year 2026-2027. 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 2026- 2027 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 District as shown in Exhibit B. SECTION 3. The assessments collected will be used in part and as provided in the Annual Report. 26-18195/414368 1 Resolution No. 2026-27 SECTION 4. This resolution shall take effect on October 6 , 2026. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 6th day of October , 2026. < rir)4' Mayor REVIEWED AND APPROVED: INITIATED AND APPROVED: City M ager i ec r of Community Development APPROVED AS TO FORM: City Attorney ATTEST: City Cler 26-18195/414368 2 Reso No. 2026-27 Exhibit "A" Exhibit A: Annual Report `—. o nnw , i r► 4 i w. A -,� • I i, WELCOME 7n SI'/Rf em' .:Y. A, . i; !`t s r . PH ,l _ A . ' . 0 I Parking I. ` wn, lit +.ter ` Garages �� r r' ' STOP. • . Ik:ry , J 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. 1' j 1 2026.202/ANNUAL REPORT PAGE :1. ABOUT ;. DOWNTOWN t � HUNTINGTON BEACH i 1 A shopping, dining and services + ' destination for locals and -t` 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 ''A(: 2 Downtown Huntington Beach Business Representation Restaurants 72 Retail (Salon Incl.) Carts/Kiosk 91 10 Seasonal 5 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. • ♦+ I. ION A tit n �: ' '�•• • r: Y ° VISION To be a sustainable catalyst for a thriving and livable r:. , a". downtown, nationally recognized for its diverse local businesses and authentic, unique culture. Known for 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 comments regarding Downtown \�I4 �f't programs, initiatives, and issues /f- \® n w affecting the community. l ))WI Stakeholder feedback plays an �. important role in shaping Board decisions and strengthening advocacy efforts with the Huntington 02G-2027 ANNUAL REPORT PAGE 4 2025-2026 = °"°\' " 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 5th 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. ?026•,'027 ANNUAL RE-PORT VACS: f• MEMBER OVERVIEW j2 7 z 1 4 Huntington Beach Dotwntott,,BIIti,le5S Improvement District Boundaries and Benefit Zones 1.@ 2 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 - 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 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 RFPOR 'AGt 7 MAINTENANCE �1 • .. In 2013, the City approached Downtown Huntington Beach to ..l, .r,ai t .:-,i: oversee the maintenance in Downtown. The partnership increases ^�� ` � `.' ;. the services and oversight. The City's Public Works Department and I oil,f Downtown Huntington Beach have a Maintenance Agreement. Assessment funds are used to enhance the maintenance services. : ► Every three years, Downtown Huntington Beach sends out a , .,I Request for Proposals to ensure fair price and excellent services for I f= the steam cleaning and porter services. In the current year the \, .y. 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 :-,,',•.- ..4 ',a 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 , y~ .1 . , ' expenses, the Public Works Department has formally requested additional '._ 4 funding and in addition, the BID has increased funding. 1 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 RFPcRT !'laGN 2 MAINTENANCE SIDEWALK CLEANING MAP ......:-..,,,„,....,„ /.;:iii>;.'4.,7 ".),:nr '...,7 7. ......,,z,l..,7„/./ -g-.. • y �. \. ' /''� L4 .,/ t i4\Y/\ J/9\`J// �C ^ .�\`t.G/---1... /I 1O .1s iP / . \ L'47\ • ';\ r /\. ` 'P/.C* /I I{'%% tr lr is 1��•/d\ { s } (,l �,��4yk. 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Cleaning \ Oq?s /.E'ry ttt 1/ /--•\ \` 2026-2027 ANNUAL REPORT PAGE 9 DOWNTOWN WEEKLY EVENTS SURF CITY NIGHTS TUESDAY NIGHTS �TOi, k. ' r. Experience the energy of Surf City Nights, Huntington Beach's beloved weekly Ai .._,.,`j .Z • 1,�i Certified Farmers' Market and Street Fair. This vibrant, family friendly event �_ 1 r draws both locals and visitors to the heart of downtown for an evening filled s„ with community spirit and coastal charm. M� t' '' 4 ,. Stroll along Main Street and discover a curated mix of vendors offering fresh, . locally grown produce, artisan goods, and unique finds. Enjoy live a 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 �' street for an even more immersive experience. I 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�`If y' The Surf City Artisan Fair is a recurring event designed F ; 1"411 "r� to showcase the exceptional handmade and thoughtfully �« , +:Y. crafted work of local and regional artisans. Celebrating 7• creativity and craftsmanship, the fair offers a curated ,, , , marketplace where artistry and community come I together. • Rooted in the Four Corners philosophy—Gathering, ,t". ` •t '' ;, '`ly ,' M',, .'. {" Giving, Creative, and Learning —the Artisan Fair goes . ' '1 i •le I '0 ,_ `i beyond a traditional shopping experience. These pillars ti ..�.�.. �'� ••. � PP� 9 P �: ,, ,i • shape an environment that inspires connection, 'kikt 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 COMMUNITY EVENTS SURF arySPOOKKTAIMI AR OCTOBER 31, 2025 A beloved, family- and pet-friendly community event, the 7%14494r Downtown Huntington Beach Halloween Spooktacular brings 1 • 3 ►' -? — :•s t7 Main Street to life with festive fun and creative spirit. Each ; lI 7 ' year, the community comes together in costume to enjoy a r- " 1L ix, .4. E` safe and lively trick-or-treating experience along participating a'a ., 1--- rt, •�*` �l< ,,�;y, �T. �; ; businesses throughout downtown. , i `, L - Families, friends, and visitors can engage with local u, .e. d, i . 1 community partners while taking part in a variety of activities, •} p including the highly anticipated Main Street costume contest. .�.;� Adding to the excitement, the pet costume contest showcasing k I ' an impressive lineup of creatively dressed pets and their :_.a . equally enthusiastic owners. 1' Downtown businesses help make the event extra special by providing candy and treats, creating a welcoming and spirited environment for all ages. MAGIC ON MAIN STTiEET NOVEMBER 12, 2025 �lk ,� j_ ,q.ls-ti' y� Magic on Main Street is the annual tree lighting celebration ! �, , { , that marks the start of the holiday season at Surf City Nights. 4 The community gathered for an exciting countdown to illuminate r �'ili, '''`'",.,.-..•-;,-, r••` the Main Street Christmas tree, enhanced this year by the „��! .- addition of festive snowfall. Holiday cheer filled the street with �� �� h,m ' `A i • • live music, unique vendors, and a special appearance by Santa �� a. ,..E.•• •I.`•' •. • and his elves. • t,�, I `; Y The event also coincided with Small Business Saturday, 'r • ; ' ' ``• -4,,, . - e , highlighted by a proclamation from City, County and State ka : I• 4-, - : �1` leaders, alongside the Chamber of Commerce, encouraging i •, w .w' 4. ,. support for local businesses. r • `W t + r 'r, '1 4� • 4 2026-2027 ANNUAL REPORT PAGE 11 DOWNTOWN COMMUNITY EVENTS MAIN STREET BLOCK PARTY septe,mbt.r ? )J?5 f :��},1, " Rye Downtown Huntington Beach is a proud sponsor of the Main • 7. Street Block Party on Saturday, July 4th. A tradition of ''' ;4.r:,'"} , 4 ' Independence Day festivities, the event featured live music by the ? 1 , Ramsey Brothers Band and Redneck Rodeo. '"I'' ' ' '?t=.� • ra The highlight of the Block Party was the new vintage car show. This year j - i the Bike Parade peddled off from Huntington Beach City Hall down Main Fr '1'` Street to PCH and Main Street on July 5t''. The spirit of Independence Day was displayed on many bikes. Event is funded thorugh Downtown Huntington Beach. SURF CITY DAY Sept,,,T ne•, 2 , 20.-'5 y+' r ,1 Along with the International Surf Museum, the Vintage Surfboard Collector Club, and Rockin' Fig, locals and visitors come together to celebrate the vibrant culture of Surf City USA at this exciting li c; .-'t t .. i community event. Event highlights include: : -vii A Fun vendors and family friendly activities ti • ' of Kowabunga Van Klan Bus Show ', ; A Event is funded thorugh Downtown Huntington Beach. , 3 CHILI AT THE BEACH . The annual Chili at the Beach heated up Main Street! Guests enjoyed a day '*" of flavor and fun as chili contestants showcase their best recipes. i " '' ' u; Guests sampled a variety of chili entries and vote for their favorites, LI:, *: featuring local vendors and dedicated charity partners who help make this i. 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) 1) ;..2 77 ArJPIUAL RED onT 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. 21)26-2.027 ANNUAL REPORT P/ir;h Id- 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 PAGF 1!; 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 ?0 '6 2027 ANNUAL REPORT PAITE 7.('. 2026-2027 BUDGET Downtown Huntington Beach Budget 2026.27 REVENUE Downtown i I6 Assessment 5115,000.00 Visit Huntington Beach 540,000,00 Public Works(Matto) $220,000.00 SCN/SCAF 5595.000.00 Events. $12,500.00 Parking 57,003 00 Estimated Carry-over•` $55,0[0.00 TOTAL $1,044,500.00 Expense Downtown lilt Assessment 5115,000.00 Visit Huntington Beach $40,000.00 Public Works(Marco) $220,000.00 Ambassadors $18,500.00 Malco.Special Events 51.500.00 Consultant Services." 5150,000.00 Accaunhng/Legal/Dank/Fees $27,000.00 Rent(Office/Storage) 519,000.00 Office Supplies/Repairs&Maint. 54,00000 Insurance.Licenses&Fees 55,500 00 Meeting/Training $2,500 00 Board Elections 51,500.00 Oues/Subscriptiorn 51.500 00 Telephone/Internet $4,500.00 Events 53,000.00 Printing 52,00000 Parking(SCN/SCAF) 59,000.00 SON Event Management $90,125.00 Logistics $12,970.00 Marketing/Entertainment 54.85000 JCL Traffic Control $64,400.00 State County fees 59,45000 free Parking Passes 5300.00 Marco 536,360.00 5219,055.00 SCAF k Event Management $70.865.00 Logistics $8,554.00 fac4hty fee 557,850.00 Malco Maintenance(set up) 514,350.00 Security 529,050.00 Marketing/Enterlalmrent $4,850.00 $185,519.00 TOTAL 51,034,074.00 s,.ia 1y Chllt:r the et a:h.:nt.etun SmtC B.,rnt Only.,, nn.,rr;ah •"Get bit Adnr,tan xral tfrd,a :•I.i 1::to,... :+nin,.:•W u,n•,a:e II 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. 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 2026-2027 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. :7026-2027 ANNUAL REPORT PAGE 19 BOARD OF DIRECTORS r�t� �►►tt i i �l1l AND COMMITTEES 4 • t t>~ EXECUTIVE COMMITTEE 2026-2027 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 o Committee: Kari Ivey, Darrick Hearn, Wing Lam, Wahoo's Fist Tacos 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 1 2026-2027 ANNUAL REPORT PAC=;L 20 Reso No. 2026-27 Exhibit "B" Exhibit B : Map of the District, Assessment Schedule, and Businesses to be Assessed 2 � 1 Huntington Beach Downtown Business Improvement District Boundaries and Benefit Zones 1 .li 2 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 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 J'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 JESSIE 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 0/0 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 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 NOKAOI 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 PRIMECUTTAQUERIA 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 ZAC KS TOO ZEPHYR BARBERSHOP ZERO ZERO PIZZERIA ZIGGYS ON MAIN ZIMBABWE HB GIFTS & ACCESSORIES (CT) Reso No. 2026-27 Exhibit"C" Exhibit C: Improvements and Activities 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) �'0:.!;_;- 027 ANNUAL REPORT PAGE 93 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 1-I 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 5t'' 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. 2.026-2027 ANNUAL REPORT PAGE 9.5 Res. No. 2026-27 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 October 6, 2026 by the following vote: AYES: Gruel, Kennedy, Twining, McKeon, Burns, Van Der Mark, Williams NOES: None ABSENT: None ABSTAIN: None City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California Public Hearing to consider \O1. INGI 4/ adoption of p Resolution No. •.• CpRPORAT 2026-27 approving an Annual _ •.� Assessment within the '• V Huntington Beach Downtown /,_- /�II/If •• C) S. Business Improvement District =- __ ==- - for Fiscal Year 2026-27 ), i 1: > . 4:::ki%. ••• 17, 1909 , •• F •.. C°UNTN October 6, 2026 Background • Established: 2004 at the request of Downtown �'� - ' TiNc I 0/774k merchants ...,°a°°A,.,o.•.011/1*• Purpose: Fund improvements and services above ( *C`I i the City's baseline levels �_i. • Process: Per \f,;\:-,z..... ..,,,,..--<.,-c \ , 00 State law, Public Hearing to reviewT �,,� Annual Report & Budget (prepared by Advisory Board) i\QROVEM • City Council Role: Reviews the Annual Report -, 41 0 DOWNTOWN each fiscal year and, if no majority protest exists, ( ' O approves the assessment :\ The District • —255 businesses in the District 2 • Funded by business assessments (ranging 2 from $80 to $1,404) 2 • Based on business size, location, and type • Two benefit zones • —$115,000 in assessments projected annually • Collected with business license renewals H,nu;rrgronBeoch Donnmmn Huc;rrec /nrproreine,r Dstr;er • Advisory Board (appointed by Council) Bnunduricc and RcncJit loner l&1 recommends use of funds Downtown HB RESOLUTION NO. 2008-04 • Appointed in 2008 to serve as the District's Advisory A RESOLUTION OFI'H{ CITY COUNCIL OF THE CITY OF Hi NTINGTON BEACH DESIGNATING Board THE DOWNTOWN BUSINESS IMPROVEMENT DISTRICT AS THE DOWNTOWN BID ADVISORY BOARD • Private, 501(c)(6) nonprofit formed by Downtown WHEREAS, on September 7. 2004 City Council created the Downtown Business Improvement Utstnct ("Downtown BID")pursuant to Calttbmia Street.. & Highways Code businesses Section 36500.et seq.:and Businesses located in the geographical boundanes of the Downtown BR) formed a • Represents business interests and manages Improve non-profit corporation opromoote the downn as town of Huntington onBeach,l and own Business Improvement District to'tcnct g programming, events, and services This non-profit corporation repro :nt.. the collective interest of businesses in the geographic BID area to pmmote BID activities, NOW.THEREFORE,the City Council of the City of Huntington Beach does hereby • Operates under an agreement with the City to resolve as follows manage District activities Upon the adoption of Ordinance No. 3797 ,the Huntington Beach Downtown BID.shall be the Downtown 1311)Advisory Board for the 2007-2008 BID budget year. • PASSED AND AD OPTE I)by the City Council of the City of Huntington Beach at a Downtown BID Structure regular meeting thereof held onthe 4th day of February .2008 . • BID (District): Property-based assessment district funded 6,64 ��. Ma:,0: by business assessments. REVIEW AP ROVED: • Downtown HB: Nonprofit organization that administers INITDATED AND.1PfRt.r\'ED: r BID funds and programs. CityAdminiskator Director of E.cononi clopment FY 2025 -26 Highlights Program & Service Enhancements: • Launched Sweet on Surf City and Burger Fest ,D r I • Increased interactions on Social Media by b i • . . .-4 d1 400% on Facebook and Instagram i 1 : •� � � • Installed lighting in Z Park - IN , 1 3 • Partnerships & Transparency: ' A '1,,, i ;4, _„:,..........,.. . , r . ,A tk • Hosted Strategic Plan Workshop ." • Partnered with Chamber of Commerce and The Strand for two Business Expos . • Established Quarterly Marketing Plan FY 2026-27 Proposed Budget Total Downtown HB Budget Surf City Nights/Surf City Artisan Fair $ 595,000 City of HB - Maintenance $ 220,000 BID Member Assessments $ 115.000 Ambassador Program (VHB) $ 40,000 Events (Chili on the Beach, surf City Days etc.) $ 12,500 Parking $ 7,000 Carryover $ 55,000 Total $ 1,044,500 Assessment Breakdown Allocation of Business Assessments Ambassador Program $ 35,000 Holiday Beautification $ 25,800 Enhanced Maintenance $ 21,000 Community Events $ 18,000 Marketing $ 10,000 CRM $ 3,000 Financial Services $ 2,200 Total $ 115,000 How Assessment Funds Will Be Used • Ambassador Program: Helps visitors feel safe 0 ,,and welcomed around town • . • Enhanced Maintenance: Keeps streets clean during busy weekends and large events VILINErai,� __. • Holiday Beautification: Brightens the area s.� k �,1JI % -.with festive lights and trees "" �.r, T .tr• _ , , w r • Marketing: Uses social media, websites and _Y digital ads to spread the word #s �— rdi t �_ c ,. • Community Events: Hosts fun local activities - ,-. 4 AP ' like Surf City Spooktacular and Magic on Main i " r� A irt • CRM System: Improves outreach and tracking • Financial Services: An outside CPA ensures all finances are tracked responsibly Annual Assessment Protest Hearing • State law requires an annual hearing to review any protests against the District . -:: f !► ' � ' � �' assessment •' r / {,, • • Only written protests submitted by business P y,7 M• owners or their legal agents may be ;i�f r .; ' considered 1. } a. • If protests equal 50% or more of the total '-, t '0t•� t - ' it assessment, assessment cannot be levied for :y,;,;:8444" •-t. =.. t• . A f '. *�• the upcoming year ` ' x • t 42 �4 4 p g Y ., .;P . w • If a majority protest does not occur, City r ; '' . ' �� ' " . . ,flip yti ��, ►a Council may renew the assessment for the ; . �= : . .� upcoming year � �, . i _ �:,� �� Recommendation • Conduct the Public Hearing • If written protests representing less than 50% of the total assessment are received, adopt Resolution No. 2026-27 approving an annual assessment for FY 2026-27 ,. \Av...., Questions ? , . ! ;,, ,,„ : " ,.. . __ . ____:_.,,.......,_„.._.ii,.....___,........___ ;.:„..,..._..i.: • I' \\\N‘s. ..s.-:--,.... - .:....4 .....,...., .•'' r M ' FE Column OFFICIAL AD PROOF This is the proof of your ad scheduled to run in Huntington Beach Wave on the dates indicated below. If changes are needed, please contact us prior to deadline at (714) 796-2209. Notice ID:gLgXljcvfB6jhH7tLVtW I Proof Updated:Sep.09,2026 at 09:09am PDT Notice Name: Public Notice Resolution No. 2026-26 I Publisher ID:0011810779 See Proof on Next Page This is not an invoice.Below is an estimated price,and it is subject to change.You will receive an invoice with the final price upon invoice creation by the publisher. FILER FILING FOR Monica Molina Huntington Beach Wave monica.molina@surfcity-hb.org (714)536-5227 Columns Wide: 5 Ad Class: Legals Total Column Inches: 55.9 Number of Lines: 115 09/17/2026:City Notices Notice 2156.95 Subtotal $2156.95 Tax $0.00 Processing Fee $0.00 Total $2156.95 Public Notice Resolution No. 2026-26- Page 1 of 3 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 2026-2027 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on October 6,2026, at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, CA 92648, Council Chambers,as required by the Parking and Business Improvement Law of 1989 as approved by the City Council In Resolution No.2026-26 as reprinted below: 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 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 assessments to promote business and tourist related activities;and The Districts 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 436500,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. SECT_IQN2.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. 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 October 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 oblection 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 malorlty 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. SECTIQN1,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 Public Notice Resolution No. 2026-26-Page 2 of 3 circulation at least seven days before the public hearing. SECTION 8. Further information regarding the proposed business improvement district may be obtained at 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. SFCTION 9 The City Clerk shall mall a complete copy of this resolution of intention by first-class mall to each business owner In this area within seven days after the Council's adoption of this resolution. 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. 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) 536-5582 or through the City's webslte at https://huntingtonbeach.leglstar.com/Calendar.aspx. Publish: September 17,2026 Huntington Beach Wave Published:9.17!26 Public Notice Resolution No. 2026-26- Page 3 of 3 r / INCLUDESN THE FALNTAIVALLEY VIEW 1920 Main St. Suite 225, Irvine Irvine, California 92614 (714) 796-2209 legals@inlandnewspapers.com City of Huntington Beach-City Clerk's Office 2000 Main Street Huntington Beach, California 92648 Account Number: 5272431 Ad Order Number: 0011810779 Customer's Reference/PO Number: Publication: Huntington Beach Wave Publication Dates: 09/17/2026 Total Amount: $2156.95 Payment Amount: $0.00 Amount Due: $2156.95 Notice ID: gLgXljcvf66jhH7tLVtW Invoice Text: 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 2026-2027 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on October 6, 2026,at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street, Huntington Beach, CA 92648, Council Chambers,as required by the Parking and Business Improvement Law of 1989 as approved by the City Council in Resolution No.2026-26 as reprinted below: 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 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 Public Notice Resolution No. 2026-26- Page 1 of 3 See Proof on Next Page f 7 "]' INCLUDES THE FOUNTAIN / VALLEY VIEW Huntington Beach Wave 1920 Main St.Suite 225,Irvine Irvine,California 92614 714)796-2209 2000 Main Street Huntington Beach,California 92648 AFFIDAVIT OF PUBLICATION STATE OF CALIFORNIA County of Orange County 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 County, State of California, on July 1, 1998, Case No. A- 185906 in and for the City of Irvine, County of Orange County, 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: 0911712026 I 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:Sep 17,2026. Cante . ure Public Notice Resolution No. 2026-26- Page 1 of 3 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 2026-2027 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on October 6,2026, at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 Main Street, Huntington Beach, CA 92648, Council Chambers,as required by the Parking and Business Improvement Law of 1989 as approved by the City Council in Resolution No.2026-26 as reprinted below: 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 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 malorlty 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 Districts 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. SEC T ION 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 flied 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. SECJJ.ON 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. SECT.LO_ I__ ,. 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 October 6,2026, at 6:00 p.m.,or as soon thereafter as this matter may be heard,in the Council Chambers of the City Hail, 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 1n 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 oblection 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 malorlty protest by the City Council. If the malority 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. SECTION1.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 Public Notice Resolution No. 2026-26- Page 2 of 3 circulation at least seven days before the public hearing. SECTION 8. Further Information regarding the proposed business improvement district may be obtained at 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 mall a complete copy of this resolution of Intention by first-class mall to each business owner In this area within seven days after the Council's adoption of thls resolution. 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. 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) 536-5582 or through the City's webslte at https://huntingtonbeach.leglstar.com/Calendar.aspx. Publish: September 17,2026 Huniinyton Beach Wave Published.9'17/26 Public Notice Resolution No. 2026-26- Page 3 of 3 TiNG 2000 Main Street, oF � �Pe»sr�0?/��' Huntington Beach,CA 92648 _ , City of Huntington Beach 1 U S. APPROVED 7-0 '6F�oUNTv �`��y File #: 26-724 MEETING DATE: 9/1/2026 REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: Honorable Mayor and City Council Members SUBMITTED BY: Travis Hopkins, City Manager VIA: Jennifer Villasenor, Director of Community Development PREPARED BY: Christopher Kennedy, Economic Development Project Manager Subject: Approve the Huntington Beach Downtown Business Improvement District's (District) Annual Report and Budget for Fiscal Year (FY) 2026-2027 and Adopt Resolution No. 2026-26 to Continue Levying an Annual Assessment on Businesses within the District, with a Public Hearing Scheduled for October 6, 2026 Statement of Issue: The Huntington Beach Downtown Business Improvement District (District) was established by the City Council in 2004 to enhance services and improvements within the downtown area. Businesses within the District pay an annual assessment, which funds these enhancements beyond the City's baseline services. Every year, the City Council must review and approve an Annual Report and budget submitted by the Huntington Beach Downtown Business Improvement District (Downtown HB), as required by state law. Additionally, the City Council must adopt a resolution to continue collecting the annual assessment. Financial Impact: The District's FY 2026-2027 budget submitted by Downtown HB includes projected revenues of $1,044,500, with approximately $115,000 expected from business assessments. The remainder comes from other sources. The City's FY 2026-2027 Operating Budget, specifically the Huntington Beach Downtown Business Improvement District Fund (Fund 710), includes $128,000 in related revenue and matching expenditures. Recommended Action: A) Approve the Huntington Beach Downtown Business Improvement District Annual Report and Budget for FY 2026-2027; and B) Adopt 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," and schedule a public hearing on October 6, 2026, to consider the continuation of the Huntington Beach Downtown Business City of Huntington Beach Page 1 of 5 Printed on 8/26/2026 powered by LegistarT" 158 File #: 26-724 MEETING DATE: 9/1/2026 Improvement District. Alternative Action(s): Do not approve the Annual Report and Proposed Budget, suggest alternative spending recommendations, and/or direct staff accordingly. Analysis: At the request of local businesses, the District was established and designated by the City Council in 2004. Businesses within this area pay an annual fee to fund extra services like security, marketing, and maintenance, which enhance the downtown experience beyond what the City provides. In 2008, the City Council appointed Downtown HB to serve as the District's Advisory Board. The Advisory Board makes recommendations on how the collected assessments should be spent, as well as any changes to the District's boundaries or assessment formula. Each year, the City Council reviews and either approves or adjusts these recommendations during a public meeting. Downtown HB is a nonprofit organization created by the businesses within the District. It is responsible for managing the funds collected from the District and using them to provide the additional services that benefit the District. The City of Huntington Beach and Downtown HB work together under an approved agreement to manage the District. In addition, Downtown HB organizes other events and provides services funded through sources outside of assessment revenue. Annual Renewal of the District Pursuant to state law, an Annual Report has been submitted and includes the following details: 1. No changes are proposed to the District's boundaries or benefit zones; 2. A list of planned improvements and activities, along with their estimated cost; 3. The method used to calculate the assessment for each business; 4. Any surplus or deficit revenues from the previous fiscal year; and, 5. Contributions from sources other than assessments. The funding recommendations have been approved by Downtown HB's elected Board of Directors, who serve in an advisory capacity to the City Council. State law requires that the funds collected benefit only the businesses located within the District. There are approximately 255 businesses in the District, which are assessed based on size, location, and business type. The assessments range from $80 to $1,404 per year, with an additional processing fee by the City of approximately $12. Downtown HB is not proposing any changes to the assessment formula or the District's boundaries. State law also requires a public hearing to allow businesses in the District to voice their opinions. The Resolution of Intention schedules this public hearing for October 6, 2026. During the hearing, the City Council will consider any protests and can adjust the assessments or boundaries if necessary; however, they cannot increase the assessments or expand the boundaries without proper notification. If written protests represent 50% or more of the total assessment value, the District cannot be renewed for one year. The City Council may also disestablish the District by ordinance following a public hearing, provided that a resolution of intention to disestablish is adopted prior to the City of Huntington Beach Page 2 of 5 Printed on 8/26/2026 powered by LegstarTM 159 File #: 26-724 MEETING DATE: 9/1/2026 hearing. Annual Report and Proposed Assessment Budget Downtown HB provides various services to maintain a vibrant, clean, and welcoming environment for residents and tourists, ensuring Downtown remains a top destination for business and leisure. Over the past year, Downtown HB has invested in downtown improvements including new lighting for Z Park, expanded marketing and promotional efforts with more than 400% growth in social media followers, views, and interactions, and launched two successful food competitions generating more than 1,700 votes. Downtown HB also established annual and quarterly marketing plans, hosted a Strategic Plan Workshop, and partnered with the Chamber of Commerce and The Strand on two Business Expos on 5th Street. The total proposed budget for Downtown HB for FY 2026-2027 is $1,044,500, an increase from $972,445. This overall budget includes $115,000 from business assessment revenue, as well as revenue from other sources such as the Surf City Artisan Fair, Surf City Nights, and the City's contribution toward maintenance services. Downtown HB's Board of Directors manages the organization's total budget including non-assessment revenue and related expenses as shown below. Total Downtown NB Budget Surf City Nights/Surf City Artisan Fair $ 595,000 City of HB- Maintenance $ 220,000 BID Member Assessments $ 115,000 Ambassador Program(VHB) $ 40,000 Events(Chili on the Beach,surf City Days etc.) $ 12,500 Parking $ 7.000 Carryover $ 55,000 Total $1,044,500 The Annual Report for the District outlines the Advisory Board's recommendations for spending the $115,000 in proposed assessment revenue collected from businesses within the District. These funds are limited to programs and services that directly benefit businesses within the District. Additional Downtown HB expenses are supported by non-assessment revenue sources. The chart below compares the prior fiscal year's assessment allocations with those proposed for FY 2026-2027. City of Huntington Beach Page 3 of 5 Printed on 8/26/2026 powered by LegistarT"' 160 File #: 26-724 MEETING DATE: 9/1/2026 Assessment Budget Comparison FY 25/26 FY 26/27 Ambassador Program $ 44,800 $ 35,000 Holiday Beautification $ 25,000 $ 25,800 Enhanced Maintenance $ 21,000 $ 21,000 Community Events $ 10,000 5 18,000 Marketing 5 10,000 5 10,000 CRM $ 2,000 $ 3,000 Financial Services 5 2,200 S 2,200 Total $ 115,000 $ 115,000 City Council may approve or adjust these recommendations as needed. The proposed assessment revenue would support the following programs and services: • Ambassador Security Program - $35,000 (30%) - This investment prioritizes public safety, visitor experience, and business confidence in the Downtown area. Assessment funds will support a portion of the Downtown ambassador program, with additional contributions from Visit Huntington Beach (VHB) and Downtown HB. A strong ambassador presence deters unwanted activity, supports the Huntington Beach Police Department through early issue reporting, and ensures that residents and visitors feel welcomed and secure. Positive perceptions of safety can increase foot traffic, encourage longer stays, and support repeat visitation. • Holiday Beautification - $25,800 (22%) - Downtown lights up for the holidays with aerial displays, themed lighting, and a decorated tree on Main Street. Assessment funds will support holiday decor and enhancements that draw visitors, foster community spirit, and strengthen the Downtown experience. Plans for the upcoming holiday season include a beach-themed design and expanded decorations through the fourth block and onto 5th Street. • Enhanced Maintenance - $21,000 (18%) - Enhanced maintenance services, including daily porter coverage and expanded steam cleaning during high-traffic periods, help create a cleaner and more enjoyable Downtown experience. In addition to City-funded maintenance services, assessment funds will help cover a portion of the difference between City-sponsored services and actual costs, as well as additional porter services during holidays and major events. • Community Events - $18,000 (16%) - Annual events help boost exposure, build community, and strengthen the Downtown brand. Assessment funds will support events such as the Halloween celebration, Tree Lighting, July 4th Block Party sponsorship, and a new off-season community event, bringing locals and visitors together and creating opportunities for Downtown businesses. • Marketing - $10,000 (9%) - Marketing efforts focus on storytelling and brand-building for Downtown HB. Assessment funds support a portion of the social media consultant costs, helping create strong engagement with stakeholders and reinforce Downtown's identity. • CRM Software - $3,000 (3%) - The CRM system centralizes stakeholder data, improving communication, marketing, and relationship management. City of Huntington Beach Page 4 of 5 Printed on 8/26/2026 powered by LegistarT. 161 File #: 26-724 MEETING DATE: 9/1/2026 • Financial Services - $2,200 (2%) - A third-party CPA oversees monthly financials using QuickBooks. Along with bank management, this ensures transparency, accuracy, and accountability. For the upcoming fiscal year, Downtown HB's goals include reestablishing and restructuring the nonprofit, strengthening member communication and engagement through monthly newsletters and welcome packets, creating quarterly opportunities to connect with the Board of Directors, and developing a donation package to support Downtown HB and special events. Together, these efforts are intended to strengthen Downtown HB's organizational capacity, increase business engagement, and support a vibrant and welcoming Downtown for businesses, residents, and visitors. Environmental Status: Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project. Strategic Plan Goal: Goal 1 - Economic Development, Strategy A - Develop an updated economic development strategy to ensure business retention, local investments and job growth. For details, visit www.huntingtonbeachca.gov/strategicplan. Attachment(s): 1. Resolution No. 2026-26 Exhibit A: Annual Report and Proposed Budget for FY 2026-2027 Exhibit B: Boundary Map, Business List, and Assessment Schedule Exhibit C: Improvements and Activities Proposed to be Funded 2. PowerPoint Presentation City of Huntington Beach Page 5 of 5 Printed on 8/26/2026 powered by LegistarT" 162 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 October 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 3`d 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: 4 IV City Manager ;Irerector of Community Development APPROVED AS TO FORM: \& \ City Attorney "o" ATTEST: Aznyz___ City Clerk 26-18195/414369 3 Reso No. 2026-26 Exhibit "A" Exhibit A: Annual Report Reso No. 2026-26 Exhibit "A" , � 1VE,�yF ; � g, ,,l 1 ;, P P,,,,,..::::.,;.ur,..,.. '' ♦i¢ r t xAa ., :£ ' 04 rt.n7rhfrota 0fA',ft,fs 177 '1: e ' .tt, _.,, Ilk i ,,,,,, 1 ,05 , . , #4 ,..-.- #"'it$ ,.,4„, .,[1774#/#, - •:1 I;''''' ' $ 'E'''. 'iii44. •, . : 'STOP., '. ..-,*0.'—,4.,,„..I --;f*t;;',':..- t N„..iiir is. *4',4,‘ii ,,,,,. :;i:•„ 1-:.., „..4-, 114i....r.,,. _, , , t • as x, 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. eljavi • is ,rte 7 ;. lF46 • +� - • !i 2026-2027 ANNUAL REPORT PAGE 1 ABOUT DOWNTOWN �.� HUNTINGTON � BEACH an A shopping, dining and services rt, . destination for locals and o' .. tourists visiting Downtown p a 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 Retail (Salon hid.) Carts/Kiosk 91 10 Seasonal 30.8% �J, 5 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. 4. • ap _ s ,;� - VISION PA r `" 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. 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 comments regarding Downtown programs, initiatives, and issues h`' nawNI wn d� affecting the community. ' " Stakeholder feedback plays an .14vwar important role in shaping Board decisions and strengthening advocacy efforts with the Huntington 2026-2027 ANNUAL REPORT PAGE 4 2025-2026 HIGHLIGHTS ,rte? 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 5th 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 PAGE 5 MEMBER OVERVIEW , „.. , .. ,, 4r 2 „ EIP tAxtt 4 r; .p N. $e » t 1 M 4 An I,S Asp ,a ,' „,..,.e.,4bS4s. G :R A .,j ,eSwY CO 44 A_,. § v AdA,a".", e aeatksxtnJ,r 1, ,i4 VA ,,, 'S rh G t₹s , Y Rya 2 4x `� §k Huntington Beach .; Downtown Business Improvement District Boundaries and Benefit Zones I&2 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 - 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 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 PAGE 7 MAINTENANCE .................., " . In 2013, the City approached Downtown Huntington Beach to • -4 oversee the maintenance in Downtown. The partnership increases the services and oversight. The City's Public Works Department and 1 IN;ii Downtown Huntington Beach have a Maintenance Agreement. II , Assessment funds are used to enhance the maintenance services. x Every three years, Downtown Huntington Beach sends out a Request for Proposals to ensure fair price and excellent services for 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 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 ' 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 ' 4.4 4„ , --,,,,479,-w ,.. --4-:;..,,,,,,,.. 41 .*re? afr 'A TeamrC4 �„�,.� > <7,,,;\b, rpo -,) tt• 4%* *,.,..e c3...r ..b <4..b. co . 41 S '.40. ff 4,4 tih,.< 44-b.? (if 44° ,, .4, oilikk A\ . it, , iliplit ,f,?4,„ ,„li,,,,D :Illr/ 4%4" 444 Ilik4`i.11,061:-" IN 4. ,` .b . 4 4r \ ,\\\\*:\\ 4"., ele ',�I +. ') O e 1r tZe (1104 .9 ti Yellow — Daily Porter Servicesr is Red — Weekly Steam q� Ir 'lb 'r* Cleaning / Blue/Green — Monthly and C as needed Steam `\ "cl 4.'' Cleaning t�s . ' - ,N( . N rfy '' 2026-2027 ANNUAL REPORT PAGE 9 DOWNTOWN WEEKLY EVENTS SURF CITY NIGHTS TUESDAY NIGHTS ,; .,,.4 i ..,• Experience the energy of Surf City Nights, Huntington Beach's beloved weekly t r „ Certified Farmers' Market and Street Fair. This vibrant, family-friendly event _.._. ! } y draws both locals and visitors to the heart of downtown for an evening filled ; 1 with community spirit and coastal charm. Stroll along Main Street and discover a curated mix of vendors offering fresh, *w `3S, -- ;. locally grown produce, artisan goods, and unique finds. Enjoy live I` .4 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 r 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 IU t - crafted work of local and regional artisans. Celebrating creativity and craftsmanship, the fair offers a curated ,� + ,,,, ' marketplace where artistry and community come ,. "1 °; together. 1_ f �'. t, I ,: _ Rooted in the Four Corners philosophy—Gathering, �� . . , Giving, Creative, and Learning—the Artisan Fair goes t ' �• .` 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 COMMUNITY EVENTS SURF CITYSPOOKTACU AR OCTOBER 31, 2025 A beloved, family- and pet-friendly community event, the "L;, Downtown Huntington Beach Halloween Spooktacular brings �` ii �. ., d Main Street to life with festive fun and creative spirit. Each 1Si ; ;�X i} year, the community comes together in costume to enjoy a ..,.u..-.. -4, ,,� :* ar i# .. `w',� safe and lively trick-or-treating experience along participating 1 •, , r.'‘'"T= ++ ,; businesses throughout downtown. �� # t " gin Families, friends, and visitors can engage with local ,(.- , l. 'fry 3 ..� _ 1�' - community partners while taking part in a variety of activities, � ' 1. , „M i + including the highly anticipated Main Street costume contest. 2. V., � ..W Adding to the excitement, the pet costume contest showcasing �� ''' an impressive lineup of creatively dressed pets and their pr equally enthusiastic owners. ' , ' Downtown businesses help make the event extra special by ) ' fir; providing candy and treats, creating a welcoming and spirited environment for all ages. MAGIC ON MAIN STREET NOVEMBER 12, 2025 �, t 14. , '� �t m± Fv ' <. Magic on Main Street is the annual tree lighting celebration m that marks the start of the holiday season at Surf City Nights. '';: t ." The community gathered for an exciting countdown to illuminate �:- the Main Street Christmas tree, enhanced this year by the (` addition of festive snowfall. Holiday cheer filled the street with - 4, „`- '` live music, unique vendors, and a special appearance by Santa '1,,,-,..1,-0.7 and his elves. 5 , x -,`- '., ' The event also coincided with Small Business Saturday, -'* ` -i' :1� highlighted by a proclamation from City, County and State `, ". leaders, alongside the Chamber of Commerce, encouraging y' **` 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 �� r1 - �. Street Block Party on Saturday, July 4th. A tradition of RV� ` Independence Day festivities, the event featured live music by the �' .,, -. erm•_0.»,' Ramsey Brothers Band and Redneck Rodeo. • -4:. `�l."4 ,.s The highlight of the Block Party was the new vintage car show. This year jt- t,." 'D,;" :�v- the Bike Parade peddled off from Huntington Beach City Hall down Main 4/,‘4., ,�, `` �0" 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 Ay A 1 Along with the International Surf Museum, the Vintage Surfboard Y?yY-1)144 T„;,..7 • , Collector Club, and Rockin' Fig, locals and visitors come together to �,,c'� �;- - celebrate the vibrant culture of Surf City USA at this exciting it , community event. Event highlights include: ' , , Fun vendors and family friendly activities ? ��i�r�x, a ' � ` Kowabunga Van Klan Bus Show l k i . x h 1 • ,fi Event is funded thorugh Downtown Huntington Beach. bil CHILI AT THE BEACH August 23,2025 ' ! ' : "� 1 * r 'F; The annual Chili at the Beach heated up Main Street! Guests enjoyed a day 14 • • ./ t r z of flavor and fun as chili contestants showcase their best recipes. '� « k Guests sampled a variety of chili entries and vote for their favorites, featuring local vendors and dedicated charity partners who help make this 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 MB Assessment 5115,000.00 Visit Huntington Beach $40,000.00 Public Works(Mako) $220,000.00 SCN/SCAF $595,000.00 Events' 512,500.00 Parking 57,000.00 Estimated Carry-Over'• $55,000.00 TOTAL $1,044,500.00 Expense Downtown HD Assessment 5115,000.00 Visit Huntington Beach $40,000.00 Public Works(Mako) 5220,000.00 Ambassadors $18,500.00 Mako•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 52,500.00 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 590,725.00 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# Event Management S70„865.00 Logistics $8,554.00 Facility Fee $57,650.00 Malco Maintenance(set up) $14,350.00 Security 529,050.00 Marketing/Entertainment $4,850.00 $185,519.00 TOTAL $1,034,074.00 •Suit Cue mss,Chi at the Beach,Sweet an Surf Gee ateser ash,ete ••Based on Awe Finencie4a ••`Fett.0ir•Admit,Ass,Social Mediu M Assumption that CMS atilt continue to openrte tee SCAF 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. 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 ' � � ' BOARD OF DIRECTORS i ,,,,,,- ,-, - .., ci, ..„, .1/4m : AND COMMITTEES i' _•,,..., ��, e , ", _ - ° a�, la`2.te o _—_._ iii i r t �, ► , . 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: o Stephanie Wilson Gustavo Cruz, Fred's Cantina Donnie Lancaster, Sancho's Tacos Ad Hoc Surf City Nights/Artisan Fair o Committee: Kari Ivey, Darrick Hearn, Wing Lam, Wahoo's Fist Tacos 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 141'JrM£ W. 1IWltiIWN- A. ten. v ^s 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" DISTRIC . . 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Nr _ w,,I,-^xt.k4f. %g 4. 4 i Et,,I1,3 Af!!, -r 1 ca as.tat t VI&Ten 's 'Y — t.-�x..,r ti� '_ £iar Ar _ F}alt r.eK 4, / .i c” A i X ea j ) 2 of I.Iuntington Beach Downtown Business Improvement District m Boundaries and Benefit Zones 1& 2 ASSESSMENT FORMULA 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 “3 a r 363 3x,,�,r �, «x 35;1::.4-31E-5 =Y ,f,swsea 1,M; ar 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 J'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 JESSIE 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 MAH KI 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 01 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 PRIMECUTTAQUERIA 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 City Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California PROOF OF SERVICE OF PAPERS STATE OF CALIFORNIA ) ) 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 3, 2026, I served the foregoing documents(s) described as: 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 on the interested parties in this action by placing a true copy thereof in a sealed envelope addressed as follows: 249 — 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's 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 o tember 3 2026, at Huntington Beach, California. Senior Deputy City Clerk g:/followup/appeal/!!proof of service letter!!.doc 1 LOOK VINTAGE 1 OZ COFFEE 221 N MAIN STREET BEACH PROPERTIES LLC DAVID A SMITH 1 OZ COFFEE LLC 221 N MAIN STREET BEACH PROPERTIES LLC 217 5TH STREET 155 5TH ST STE 121 221 MAIN STREET#H HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH,CA92648 25 DEGREES 2ND FLOOR FAD 602 COFFEE HOUSE D & H DEVELOPMENT L 1 3 SA LLC 602 COFFEE HOUSE LLC 519 MAIN ST#92 7711 WOODWIND DR 602 PACIFIC COAST HWY STE A HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92647 HUNTINGTON BEACH, CA92648 AAA POSTMART ADVENTURE INC ALOHA GRILL MAIL ON OLIVE LLC ADVENTURE INC MAHALODEEZNUTS LLC 412 OLIVE AVE 220 WALNUT AVE 221 MAIN ST STE F HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92628 HUNTINGTON BEACH, CA92648 ALUMA MEDICAL AESTHETICS AMAZONIA BOWL AMBIT CONSULTING LLC ALUMA MEDICAL AESTHETICS ARSXC LLC AMBIT CONSULTING LLC 347 MAIN STREET UNIT C 401 MAIN ST UNIT 109 1229 CORNWALL AVE STE 301 SEAL BEACH, CA90740 HUNTINGTON BEACH, CA92648 BELLINGHAM, WA98225-5023 AMERICAN VINTAGE ANDE'S PERUVIAN ARTS AND CRAFTS(CT) ANDE'S PERUVIAN ARTS AND CRAFTS(CT) AMERICAN VINTAGE CLOTHING CORP JUAN ALBERTO JUY JUAN ALBERTO JUY 8258 PHLOX ST 18731 APPLEWOOD CIRCLE 18731 APPLEWOOD CIRCLE DOWNEY, CA90241-4821 HUNTINGTON BEACH, CA92646 HUNTINGTON BEACH, CA92646 APPE IZAKAYA ATM GLOBAL INCORPORATED B J'S RESTAURANT& BREWHOUSE APPE CORP ATM GLOBAL INCORPORATED B J'S RESTAURANTS INC 200 MAIN ST# 109 419 MAIN ST#309 7755 CENTER AVE STE 300 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92647 B L K EARTH SEA SPIRITS BALLANCED AESTHETICS LLC BANZAI BOWLS B L K II LLC BALLANCED AESTHETICS LLC BANZAI BOWLS 300 PACIFIC COAST HWY STE 202 21040 PACIFIC CITY CIR UNIT 4022 1835 WHITTIER BLVD UNIT D4 HUNTINGTON BEACH, CA92648-5113 HUNTINGTON BEACH, CA92648 COSTA MESA, CA92627 BASKIN ROBBINS#362100 BEACH ISLAND BEAUTIFIED BY BEEZ Z L Z INC BEACH ISLAND INC BREE NEUBAUER 1 TAIGA 127 MAIN STREET 17052 GREEN LN #32 COTO DE CAZA, CA92679 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92649 BEAUTY BOX BEAUTY BUNGALOWS BY PORCELAIN BOBASAUR CORY BUTCHER TRACI HAWKINS HOATRAN 315 3RD STREET STE P 257 WAKE FOREST ROAD 14982 BALLOU CIR HUNTINGTON BEACH, CA92648 COSTA MESA, CA92626 WESTMINSTER, CA92683 BODY BOSS MD BOGGELN & COMPANY CPA BONDI BOWLS BODY BOSS LLC BOGGELN &COMPANY INC BONDI BOWLS HUNTINGTON LLC 307 3RD ST STE 101 215 MAIN STREET 1/2 109 EAST SHORE DR HUNTINGTON BEACH, CA92646 HUNTINGTON BEACH, CA92648 ARCADIA, OK73034 /le r3/i) aid.-O A40. 02021, -.2j ' FY 2a 0 -.,1-0 -,- - BREEZA BREWSTER'S ICE BRIGHTWATERS WINE BAR LLC L& L WINGS INC YVETTE KHODAVERDI BRIGHTWATERS WINE BAR LLC 2800 NW 125TH ST 613 6TH STREET 180 5TH STREET SUITE 120 MIAMI, FL33167 HUNTINGTON BEACH, CA92648-4905 HUNTINGTON BEACH, CA92648 BROAD STREET OYSTER CO. 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(CT) ZIMBABWE HB GIFTS &ACC. (CT) ZIMBABWE HB GIFTS &ACC. (CT) ISMAIL ADAM ABDELMAGED ISMAIL ADAM ABDELMAGED ISMAIL ADAM ABDELMAGED 21254 BEACH BLVD APT L103 21254 BEACH BLVD APT L103 21254 BEACH BLVD APT L103 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92648 HUNTINGTON BEACH, CA92648 1-t6 80 k?//z) NO 202.&-2(o / -11(202& - .2O-27- TIN Renewal of the GHuntington Beach 4:0 T •-_` - - ••. c'' Downtown Business L1TTTL\ 1 Improvement District „ ewci - - for FY 2026/2027 • _ _ t. . %c6‘ , 1901 C �- v IVT`� September 1 , 2026 205 Background • HB Downtown Business Improvement District (District) •$,*, UNTiNcrpti established in 2004 in response to request from ` � , downtown merchantsriftiokiiia- • Purpose to fund activities/improvements, above the e� �$ . y' support businesses °��,� �%!'� Cits baseline, to benefit and within the defined boundary r V E 1 • Per CA Parking & Business Improvement Area Law of '$. 101• 4'i 1989, District's Advisory Board must prepare an it Annual Report & Budget for Council approval -- O milk • rnu Council must also approve the levy of the assessment °' 3 ( s`r5h for the upcoming fiscal year 206 • it The i sitri c • Comprised of approx. 255 businesses • Assessments range from $80 - $1,404 �: • Businesses are assessed based on size, , location, and business type 4 ����� • Boundary has two benefit zones /� . • $115,000 projected to be collected �� • City collects assessments annually with business license renewal Huntington Beach Downtown Easiness Improvement District Boundaries and Benefit Zones I&2 • Council appoints an Advisory Board to recommend funding needs 207 Downtown HB RESOLUTION V'()._2008-04 A RESOLUTION OF THEM?COUNCIL OF IHE • I n 2008 City Council appointed �I O H<;N ROSINESS REACH DE IttNATIST 1HE Ut3tVV'1C1WN BUSIkESS I1NPR1]VH,4t1{h�T DISTRICT AS THE DOWNTOWN.BID ADVISORY BOARD Downtown HB as the District's Advisory WHEREAS,on September 7 2}04 City Council created the Downtown Businesa Board Improvement District("boiaotown BID")pursuant to California Streets& Highways Cade Section 3ti5}},et seq.;and Bminestea located m the geographical boundaries of the Downtown BID formed a • Private, 501(c)(6) business-based non- 50I(06 non-proCtt corpcxation brown as the Htattinbaon Beach Downtown Business Improvertxn:District to better promote the downtown area atIlnnungton Beach;and profit corporation formed by businesses Ms nun-profit corporation represents the eollrxtive interest of businesses in the geographic BID area to promote 810 activities, within the District NOW,THEREFORE,the City Council of the City of Huntington Death does hereby resolve as foams. • Distinction between "BID" Upon the adoption of Ordinance Na. 3797 t c Huntington Beach Downtown BID,shall be the Downtown BID Advisory Board for the 2x707-200S BID budget year. • District (City authorized assessment district) PASSED AND ADOPTED b4t the City G°`tncFebr the City i'f Huntington Br Reach rcgularmt�erng thereof held oathe 4th day of February .24 tt8. • Downtown HB (Non-Profit Organization) AfiAa 4laycr • Agreement between City and Downtown Ri:4tEl . A ROVEI)t INITIMEo AND,APPROVED. HB to manage the District's funds and City Administrator _. Director of Eatmrn velopmeat activities 208 Downtown HB Total Budget Total Downtown HB Budget Surf City Nights/Surf City Artisan Fair $595,000 City of HB — Maintenance $220,000 BID Member Assessments $115,000 Ambassador Program (VHB) $40,000 Events (Chili on the Beach, Surf City Days etc.) $12,500 Parking $7,000 Carryover $55,000 Total $1,044,500 209 Assessment oca ions Allocation of Business Assessments Ambassador Program (30%) $35,000 Holiday Beautification (22%) $25,800 Enhanced Maintenance (18%) $21,000 Community Events (16%) $18,000 Marketing (9%) $10,000 CRM (3%) $3,000 Financial Services (2%) $2,200 Total $115,000 210 Assessment at W • Ambassador Security Program improves visitor �~ experience and safety. `% • Enhanced Maintenance ensures cleanliness, especially during peak seasons. • Holiday Beautification transforms the district with festive decorations, creating a magical atmosphere. w „ • Marketing efforts promote the area through various41. channels, strengthening brand identity. ri4 • Community Events like the HB4TH of July Block Party, t - '' GP. Surf City Spooktacular, and Magic on Main Street foster engagement and attract visitors. HUNTINGTON BEACH DOWNTOWN • A Customer Relationship Management (CRM) system BUSINESS IMPROVEMENT DISTRICT improves relations and operational efficiency. • Financial Services provided by a third-party CPA ensure ANNUAL REPORT transparent and streamlined fiscal management. 2026-2027 211 Annual • State law requires an annual protest hearing to receive and consider any protests against ' � � the assessment for FY 26-27 (scheduled for October 6, 2026) 4,.. � ` " 4:„„P„, $ . • Only protests by affected business owners ¢110 can be considered • If protests received total 50% or more of the 40 $ ` ; assessment value, no further proceedings to °�s`t , continue the District can be considered for t% ° one year � _. - ���� � -- is pM71a-ra+aa " 044:01;. .4v • If lack of majority protest exists, Council can �� !� renew assessment for the upcoming year ', -- = ,7.2tH4 MN 4 ;1.4 212 Recommendation • Approve the Annual Report and Proposed Budget for FY 26-27; and, • Adopt Resolution No. 2026-26 "Declaring the City's Intention to Levy an Annual Assessment for FY 26-27 within the HB Downtown Business Improvement District", which sets a public hearing for October 6, 2026 to consider continuation of the District; 213 ,y srp i,w r '� .3 3w a i ,�? Il rya 1,), .,,, i l.-� F o- f,s" •"f � to '� ,9` i � •.� '�l''l''`Fy +,fie•.— �t�,• ; �1, i f°• ,I s 7'��. �'• F ; , ti� t Olt c` i \{{ t C'. (I) O midi u) a) m