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HomeMy WebLinkAbout24 - Restaurant Association BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 24 December 13, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel Trimble, Program Manager 949.644.3230, dtrimble @city.newport - beach.ca.us SUBJECT: Restaurant Association Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for a Shortened Fiscal Year 2006. ISSUE: Annual renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Hold public hearing regarding the renewal of the Restaurant Association Business Improvement District; and 2.a. If protests represent less than 50 percent of the total assessment amount adopt Resolution No. 2005 - confirming the levy of the BID assessment for the 2006 shortened fiscal year. OR b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the District. DISCUSSION: Background: On November 22, 2005 the City Council held a public meeting, approved the Restaurant Association Business Improvement District 2005 Annual Report, and adopted a Resolution of Intention to levy and collect assessments for the District for a shortened period, approximately six months, to bring the BID renewal period in line with the City's Restaurant Association BID Renewal Hearing December 13, 2005 Page 2 Fiscal Year. Details regarding the proposed renewal of the District and Annual Report are provided in the attached November 22, 2005 staff report. A protest hearing must be held each year prior to renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued for at least one year. If protests represent less than 50 percent of the total assessment, the City Council may renew the District. At the time this report was prepared, no letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests at the City Council meeting. Public notice of the protest hearing and the Resolution of Intention to modify the basis to levy and collect assessments for the renewal of the Restaurant Association Business Improvement District has been published in the Daily Pilot in compliance with state law. Submitted by: SHARON Z. W Assistant City NWnager Prepared by: DANIEL TRIMBLE, C & ED Program Manager With Assistance from: CLINTON SCOTT PALMER BID Systems Inc., BID Administration Attachments: Exhibit A — November 22, 2005 Staff Report Exhibit B — Resolution of Confirmation 2005- EXHIBIT B RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE SHORT FISCAL YEAR OF JANUARY 1, 2006 TO JUNE 30, 2006 FOR THE RESTAUARANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on November 22, 2005 the Restaurant Association Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on November 22, 2005 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the Restaurant Association Business Improvement District for the short fiscal year January 1, 2005 to June 30, 2006; and WHEREAS, a public hearing regarding the renewal of the Restaurant Association Business Improvement District was held on December 13, 2005 without a protest of majority. NOW, THEREFORE, the City Council of the City of Newport Beach hereby confirms the levy of assessments as described in the Resolution of Intention dated November 22, 2005 for the Restaurant Association Improvement District for the short fiscal year January 1, 2006 to June 30, 2006. 5 This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the 13th day of December, 2005. ATTEST: CITY CLERK MAYOR Resolution No. 2005 - Restaurant Association Business Improvement District A CITY OF NEWPORT BEACH R4- CITY COUNCIL STAFF REPORT 1 _ 1 0 5 Agenda Item No. 9 November 22, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel Trimble, Program Manager 949/644 -3230. dtrimble @city.newport - beach.ca.us SUBJECT: Restaurant Association Business Improvement District Renewal: Annual Report for Fiscal Year 2005 and Adoption of Resolution of Intention to Levy for a Shortened Fiscal Year of January 1, 2006 to June 30, 2006. If • ISSUE: Annual renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Approve Restaurant Association Business Improvement District 2005 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for December 13, 2005. DISCUSSION: Background: The Restaurant Association Business Improvement District (BID) is nearing the end of its tenth year of operation and requests renewal of the District for a short fiscal year of January 1, 2006 to June 30, 2006. This report summarizes the District's accomplishments during 2005, its tenth year of operation, and the proposed activities and budget for the coming year. The BID's Board of Directors, which serves as the District Advisory Board, requests City Council approval of the annual report and scheduling of the public hearing for December 13, 2005. California law requires that an annual report be prepared and a public hearing be held each year prior to renewal of . the District. A summary of accomplishments during 2005 and proposed activities for 2006 k Restaurant Association BID Renewal November 22, 2005 Page 2 0 are provided below. The District's 2006 activities are proposed to remain the same as in 2005. ' Tenth Year District Accomplishments: The merchants of Restaurant Association have found their tenth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts to create and execute Marketing Plan of Work & Budget • Distributed NBRA Dining Guides through the following outlets: Western Brochure Distributors, California Welcome Center, Conference & Visitors Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment. • . Participated as a sponsor in the Corona del Mar Centennial Celebration • Maintained NBRA Website: www.newportbeachdining.com (with upwards of 115,000 hits per month) • Maintained Toll free Dining Reservation System for all NBRA restaurants with an average of (600) calls per month and (50) direct connections to various NBRA restaurants. • Implemented local media campaign to promote website, dining guide and phone reservation system • Mailed NBRA newsletters from the Board of Directors to all members. • Developed and updated a comprehensive member listing and database • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association • Placed advertisements in the NBCVB & AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide • Placed full panel advertisements in the NB Chamber map and the Anaheim • Official Dining Guide. E Restaurant Association BID Renewal November 22, 2005 Page 3 • Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs • Secured a NBRA Coop sponsorship panel display and referral program at the California Visitor Center to promote NBRA • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public. • Sponsored the Newport Beach Film Festival & organized restaurant participation • Sponsored reduced cost Serve Safe and ABC seminars • Hosted NBRA annual luncheon membership networking meeting If • Fiscal Year District Revenues: During 2005 the district collected approximately $65,521 in member assessments and $39,662 in matching funds from the City. The District spent approximately $78,041 for approved activities. It is anticipated that a remaining balance of approximately $40,000 will be carried over into the short 2006 fiscal year budget. Proposed Activities and Budget: The activities proposed for the next year include marketing, advertising, and public relations to benefit Restaurant Association businesses. The estimated budget for these activities is approximately $71,000. The Restaurant Association Business Improvement District appreciates the City Council's continued support. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4 }. Public Notice: is None Required 1. Restaurant Association BID Renewal November 22, 2005 Page 4 Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: Submitted by: SHARON Z. WOOD DANIEL R. TRIMBLE Assistant City Mana er C & ED Program Manager With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A — FY 2005 Annual Report and 2006 Priorities & Budget Outline Exhibit B — Resolution of Intention to Levy 2005- • CI EXHIBIT B • RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE SHORT FISCAL YEAR 'OF' JANUARY 1, 2006 TO JUNE 30, 2006 , AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Restaurant Association Business Improvement District was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "Act'), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board has prepared an Annual Report for Fiscal Year 2005 which is on file in the Office of the City Clerk; and r WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2005, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the period of January 1, 2006 to June 30, 2006 pursuant to the Act. E Section 3: The location of the District will remain the same: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Section 4: The City Council intends to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: A. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. B. For establishments with greater than ten (10) employees, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. C. The assessment for all other businesses within the District shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. ' Section 5: The benefit assessments shall be collected by the City an one annual installment, with collections for new businesses in the District on the day of the issuance of a business license by the City. The assessment for new businesses shall be pro -rated according to the number of full months remaining in the District's fiscal year. Section 6: The penalty for delinquent payments shall be twenty five percent per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 7: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events. 4. The general promotion of restaurant trade activities. 5. Educational and training classes for members • Resolution No. 2005 - Restaurant Association Business Improvement District . 6. Memberships in various organizations deemed to promote dining in Newport Beach. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 13, 2005 at 7:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 3300 Newport Boulevard, Newport Beach, California at which time the Council will hear all interested persons for or against the establishment of the District, the extent of the District and the specific types of improvements or activities to be funded by the benefit assessment. 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. If written protests are received by the owners of businesses within the District that pay fifty percent or more of the total • assessments to be levied, no further proceedings to renew the District 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 specific type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. Further information regarding the proposed Business Improvement District renewal may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658. Telephone (949) 644 -3225. The City Clerk shall cause this resolution of intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. • Resolution No. 2005 - Restaurant Association Business Improvement District This resolution shall take effect immediately upon adoption. Passed and • adopted by the City Council of the City of Newport Beach at a regular meeting and thereon held on the day of MAYOR ATTEST: CITY CLERK 2005. • Resolution No. 2005 - Restaurant Association Business Improvement District REPORT TO THE MAYOR AND CITY COUNCIL RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2005 PROGRAM YEAR Overview This is the annual report for the Restaurant Association Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for calendar year 2005. Boundaries The boundaries of the benefits zone remain unchanged: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Prior Year Accomplishments The merchants of Restaurant Association have found their ninth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts to create and execute Marketing Plan of Work & Budget. • Distributed NBRA Dining Guides through the following outlets: r Western Brochure Distributors, California Welcome Center, Conference & Visitors • Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment. • Participated as a sponsor in the Corona del Mar Centennial Celebration. • Maintained NBRA Website: �eww.neu-portbeachdiaiu -,.corn (with upwards of 115,000 hits per month). Maintained Toll free Dining Reservation average of (600) calls per month and restaurants. System for all NBRA restaurants with an (50) direct connections to various NBRA • Implemented local media campaign to promote website, dining guide and phone reservation system. • Mailed NBRA newsletters from the Board of Directors to all members. • Developed and updated a comprehensive member listing and database. • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association. • Placed advertisements in the NBCVB & AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide. • Placed full panel advertisements in the NB Chamber map and the Anaheim Official Dining Guide. • • Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs. ' • Secured a NBRA'.Coop sponsorship panel display and referral program at the California Visitor Center to promote NBRA. • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA. • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public. • Sponsored the Newport Beach Film Festival & organized restaurant participation. • Sponsored reduced cost Serve Safe and ABC seminars. • Hosted NBRA annual luncheon membership networking meeting. Renewal of District City Staff has reviewed the renewal periods for all four business improvement districts. Most of the • Districts have renewal periods that are not synchronized with the City's fiscal year. Staff has determined that efficiencies in administration of the Districts would be realized if all four Business Improvement Districts renewed in synch with the City's Fiscal Year. Therefore, Staff recommends that the Restaurant Association Business Improvement District be renewed for a period of six months, and then be renewed again in July of 2006 in order to match the City's Fiscal Year. Proposed Activities The improvements and activities to be provided for the year include: 1. Implementation of new FY 2006 Comprehensive Marketing Plan of Work & Budget. 2. Marketing and Advertising campaigns to promote NBRA programs. 3. Restaurant Association BID Member and Community Outreach. 4. Active Membership in the Newport Beach and Anaheim Conference and Visitor's Bureau, Newport Harbor Area Chamber of Commerce, California and National Restaurant Associations. Proposed Budget The estimated cost of providing the proposed improvements and activities for the short fiscal year in this report is approximately $71,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the Short 2006 year. • Page 2 Assessments . Assessments shall be collected in one annual installment at the beginning of the year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. For establishments with greater than ten (10) employees, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments will be twenty -five percent per month, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Account Status The District's current account balance is approximately $45,641 at the end of the first ten months of the year. It is anticipated the balance will be approximately $40,000 or less at the year -end, December 31, 2005, and will be carried over to the next short fiscal year. Matching funds, if approved by the City Council for year 2005, will be added to the amount designated for marketing activities in the following new fiscal year, July 2006 to June 2007, and are therefore not included in this report. The merchants of Restaurant Association have worked hard to promote their member restaurants and the dining experience in Newport Beach as a whole. They wish to express their appreciation for the City Council's continued support of the Restaurant Association Business Improvement District, especially the $39,000 of matching funds provided by the City. • Page 3 Restaurant Association Business Improvement District • Priorities and Budget Outline January 1, 2006 — June 30, 2006 Funds Available FY End.2005 $40,000 Funds to be collected January 2006 $31,000 Anticipated Matching Fund's from City (see note below) Total Available Funds $71,000 Priorities Percent of Budget Budget Amount 1. Marketing Plan Administration 22% $20,000 • Implement the current Marketing Plan • Identify and present new marketing opportunities to the Board • Supervise creative, production, printing and other Marketing Plan efforts 2. Media Advertising Buys 30% $20,000 • Expanded Print Media Campaign: Tourism Market: CA State, Anaheim Visitor Guides and Newport Beach Visitor Guide Local Market: Daily Pilot, OC Register, OC Metro, and Coast Magazine • Direct Mail Campaign to Local Residents • 3. Marketing Collateral Development 28% $9,000 • Dining Guide Production & Reprint • , Dining Guide Distribution: Western Brochure 4. Communications 14% S19,000 • Maintain Toll -Free Dining Reservation System Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Memberships 2% $1,000 • Anaheim Visitors & Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau 6. Special Events 4% $2,000 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships • Note: Matching funds will not be available until the next year's renewal in July of 2006. Page 4 N 0 N O Z 2 O H 7 J O w K m m D L L x U° 5 c m O C N N N N 0 N == O ? 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O: m N N U 7 d °- > Q m c r i Q LL c 3 m ¢ O ¢ o N m _7 (9—no T LL N E Q LL z O— N ` 2 3 U f p 2 K J O w d rn m Q .0 Q W ~ O O o m E J O QW m w .G £ L m @ p N > N j OQi❑ 2 n N ) = u3i S w i) O (%� O W Ql- Lo { \ � ( ( { \! } {{f \ }a ) �2 »!: r \§ }.�0 E j5 {/ �2» -7. \ \ \ \ \ \ s = =la{ a!!u ! ®l;: ;$ s= { } \«�. t,! _ - °r ;E:u! E!f ) ® \ {�±QE >0 \ \\ \ \\ Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County. California. Number A -6214, September 29, 1961, and A -24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: DECEMBER 3,2005 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on DECEMBER 3,2005 at Costa Mesa, California. Signature #)y p,13 0> J RESOLUTION OF THE ------ -- CITY COUNCIL OF THE CITY OF NEWPI BEACH DECLARING ITS INTENTION TO RENEW THE RESTAURJ ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE SH( FISCAL YEAR OF JANUARY I, 2006 TO JUNE 30, 2006, AND FIX 1 TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Restaurant Association Business Improvement Dist was established in 1996 pursuant to the Parking and Business Improvem Area Law of 1989, California Streets and Highways Code, Section 36! et seq., (hereinafter the "Act"), which requires an annual report to tiled and approved by the City Council for each fiscal year and WHEREAS, the Advisory Board has prepared an Annual Report for Fis Year 2005 which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention levy and collect assessments within the Business Improvement Disfr for the next fiscal year. NOW, THEREFORE, the City Council of the City of Newport Be, resolves as follows: Section I: The Annual Report filed by the Advisory Board is here approved. The Annual Report contains a description of improvements a activities to be provided for 2005, the area boundaries, and the annl assessment within the District Section 2: The City Council hereby declares it intention to renew t Business Improvement District for the period of January 1, 2006 to To 30, 2006 pursuant to the Act Section . : e restaurant doing business within h the boundaries of the Cfity of Newpo Beach is part of the District. Section 4: The City Council intends to levy and impose and order it collection of a benefit assessment upon persons conducting business the District. Such benefit assessment shall be as follows: A. For establishments with less than eleven (11) employees, it assessment shall be a flat $50.00. B. For establishments with greater than ten (10) employees, the benef assessment shall be equal to the City's usual annual business license to as established pursuant to Chapter 5.08 of the Municipal Code. C. The assessment for all other businesses within the District shall b 100 percent of the annual business license tax as established pursuan to Chapter 5.08 of the Municipal Code. Section 5: The benefit assessments shall be collected by the City ii one annual installment, with collections for new businesses in the Distric on the day of the issuance of a business license by the City. Thy assessment for new businesses shall be prorated according to the numbe of full months remaining in the District's fiscal year. Section e6: The penalty for delinquent payments shall be twenty fivl Percent , providing that the penalty to be added shall in m event exceed one hundred percent of the assessment amount due. Section 7; The improvements and activities to be funded by the benefil assessments shall include only the following: 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events. 4. The general promotion of restaurant trade activities. 5. Educational and training classes for members 6. Memberships in various organizations deemed to promote dining in Newport Beach. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 13, 2005 at 7:00 p,m., or as soon thereafter as this matter may be heard, in' the Council Chambers located at 3300 Newport Boulevard, Newport Beach, California at which time the Council will hear all interested. persons form against the establishment of the District, the extent of the District and the specific types of improvements or activities to be funded by the benefit assessment. Protests may be made orally or in writing, but if written shall be filed with the City Clerk at or before the time fixed Ior the Hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received byl the owners of businesses within the District that pay fifty percent or renew the District assessments ict hall be taken for a levied, d of one further year Proceed to of the finding of a majority protest by the City Council. If the majority rotest is only or activity the furnishing of a specific type or types of ar activities y within the District, those types of improvements shall be eliminated. Further information regarding the proposed Business Improvement District 'enewal may be obtained at the Newport Beach City Hall, 3300 Newport 3oulevard. Newport Beach, California, 92658. Telephone (949) 644 -3225. The City Clerk shall cause this resolution of intention to be published lays before sr of general circulation in the City at least seven e the Public hearing. This resolution shall take effect immediately upon adoption. Passed and- copied by the City Council of the City of Newport Beach at a regular) reefing and thereon held on the 22nd day of November 2005. s/ John Heffernan MAYOR M. Harkless CITY