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HomeMy WebLinkAbout03 - BID Administration�Ew'�gr CITY OF NEWPORT BEACH Hearing Date: April 26, 1999 COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: 3 �= PLANNING DEPARTMENT Staff Person: Christy Teague 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (949) 644 -3207 (714) 644 -3200; FAX (714) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: BID (Business Improvement District) Administration SUGGESTED ACTION: Adopt Resolution to Establish BID Coordinating Committee and Approve Request for Proposals for BID Administration BACKGROUND On October 12, 1998 the City Council directed staff to prepare and circulate a Request for Proposals for BID Administration and directed staff to prepare a City Council Resolution to Establish the BID Coordinating Committee. At the same meeting, the City Council approved the concept of matching the BID assessments with City funds and using these funds for administration of the BIDS and project coordination. A more complete background report is in the attached staff report prepared for the October 12, 1998 City Council meeting. DISCUSSION BID Coordinating Committee The BID Coordinating Committee meets quarterly to provide a forum for information sharing and program coordination for the benefit of all the BIDS and the City. The composition of the Committee includes the BID presidents, the Conference and Visitors Bureau CEO, the Assistant City Manager, and the Newport Harbor Area Chamber of Commerce President. The BID Coordinating Committee will help staff select a consultant after the Request for Proposals is circulated for BID administration assistance. Adoption of the attached resolution will formalize the committee. -1- Request for Proposals A Request for Proposals will be circulated in the next month seeking assistance with BID administration. It is anticipated selection of a consultant will be determined by the end of June. The City is seeking administrative assistance for various BID services, including financial administration/bookkeeping and business assessment list maintenance. A copy of the proposed RFP is attached for the City Council's review. SUMMARY The BID Coordinating Committee has worked hard to identify the needs and will be working to assist staff in the selection of the consultant. A follow up report with cost information will be made to the City Council along with a recommendation on a BID administration consultant. Submitted by: Prepared by: SHARON Z. WOOD CHRISTY D. TEAGUE, AICP Assistant City Manager Senior Planner Attachment: Resolution to Establish the BID Coordinating Committee Proposed Request for Proposals for BID Administration Excerpt of Minutes from October 12, 1998 City Council Meeting October 12, 1998 Staff Report to City Council Page 2 • RESOLUTION NO. 99- • A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH ESTABLISHING THE BUSINESS IMPROVEMENT DISTRICT COORDINATING COMMITTEE. WHEREAS, the City Council has established Business Improvement districts to promote commercial areas and enhance business conditions for members of the districts; and WHEREAS, it is desirable that BID administrative duties be performed cooperatively by all BIDS so as to avoid inconsistencies and achieve economies of scale; and WHEREAS, the formation of a BID Coordinating Committee . comprised of representatives of each BID Advisory Board, the Newport Beach Conference and Visitors Bureau, and the Newport Harbor Area Chamber of Commerce will help to facilitate the joint administration of all BIDS and also foster cooperation in their promotional efforts. NOW, THEREFORE, BE IT RESOLVED, that a BID Coordinating Committee comprised of a President or Chairman of each BID Advisory board, the Newport Beach Conference and Visitors Bureau CEO, the Assistant City Manager, and the President of the Newport Harbor Area Chamber of Commerce is hereby established in order to facilitate the joint administration of all BIDS and foster cooperation in their promotional efforts. L J L BE IT FURTHER RESOLVED that coordination of ongoing BID administrative responsibilities shall be overseen by the Business Improvement . District Coordinating Committee, which shall make recommendations to the City Council regarding the scope of services and vendor selection for BID administrative support. 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 1999. MAYOR ATTEST: CITY CLERK F: \... \b i d s\A d m i n\Re s o 4 • CITY OF NEWPORT BEACH REQUEST FOR PROPOSALS Business Improvement District Administration I. BACKGROUND The City of Newport Beach is soliciting proposals from professional consultants to assist City staff with ongoing BID Administration. The City of Newport Beach has four Business Improvement Districts, three older commercial districts and the citywide restaurant industry. On October 12, 1998, the Newport Beach City Council approved the concept of using outside resources to provide professional administration of BID renewals, billing, collections, payments and project support. It is expected these services will begin in the next budget year beginning July 1, 1999. • II. SCOPE OF WORK Proposals should be prepared in accordance with the following scope of work: Task 1 Project Initiation This task will include working with City Administrative and Planning staff and BID Advisory Boards to obtain any information the consultant deems appropriate to become familiar with the background and purpose of the BID administration. Task 2 Financial Administration/Bookkeeping Administration and management is needed for accounts receivable, accounts payable, and billing each business the appropriate assessment. This is a substantial portion of the administration support requested which requires accounting services including invoicing, receiving assessment payments, payment status reports, following up on delinquencies, and a limited number of vendor payments. The City has four existing BIDS for a total of approximately 900 accounts. Each BID has its own assessment schedule, with some variations by business type. Assessment • schedules are attached. Task 3 Annual Renewals • The consultant will be expected to manage renewal procedures including public notices, BID annual reports, assistance with City Council reports, and possible protest tabulations according to state law for the City's four business - based business improvement districts. Task 4 Business Assessment List Maintenance Work with the City and business district board members to develop and maintain current lists of businesses within each of the four BIDS for assessment billing and public notices. Task 5 Public Meetings Attendance at quarterly BID Coordinating Council meetings, regular attendance at business improvement district meetings, and City Council meetings for renewal proceedings. In addition to the essential tasks above, one or more of the BIDS may request additional consultant support for the following services: Task 6 Project Support Advocate and facilitate improvement projects with City departments and other agencies as needed. This task may be desired by one or more of the Business Improvement Districts to be paid for with their funds. Task 7 Board of Directors Support Support work including agendas, minutes and quarterly newsletters may bedesired by one or more of the Business Improvement Districts to be paid for with their funds. III. PROPOSAL CONTENTS The proposal should contain the following information: A. Statement of Understandine of the Anoroach and Scope of the Work: This statement should summarize your understanding of the scope and purpose of the administration. The statement should also include any recommended changes to the Scope of Work presented above that, based on your knowledge and experience, seem appropriate to best meet the goals of this project. 0 0 • • B. Experience and Qualifications: Please provide descriptions of other similar professional work you have completed, including the names and telephone numbers of client references that can be contacted to discuss the work. In addition, please describe any other related experience you have that contributes to your qualifications for this project. C. Proiect Personnel and Management: List the names, specific qualifications and level of effort of each person, including subcontractors, who would be assigned to the project. For each person, identify the specific tasks he or she would be undertaking. Designate the person who would have overall responsibility for the project and the person who would be primarily responsible for contact with the City and the BIDS. All subcontractors should also be identified along with their relevant experience. D. Availability and Ability to Perform: For each key staff member, please describe the estimated percentage of the person's time that would be dedicated to this project. E. Budget: Please provide a total budget by task. The budget should include costs for the time of the prime contractor's staff, subcontractors, and costs for reimbursable expenses such as reproduction, materials, travel, etc. The budget should be on a "not to exceed" basis, except for the optional services that some BIDS may elect for which a time and materials cost estimate should be provided. Four copies of the proposal must be received by 5:00 p.m., May 28, 1999. Late submittals will not be accepted. Proposals should be mailed or delivered to: Christy D. Teague, AICP Senior Planner, Planning Department City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 -8915 V. SELECTION PROCESS The proposals will be evaluated and the consultants deemed most qualified will be invited to an interview. This evaluation will be based on the consultant's experience with similar projects and level of understanding demonstrated in the proposal, as well as budget. • 7 VI. SELECTION SCHEDULE It is expected that interviews for the most qualified consultants will be conducted is in mid -June, with the final consultant selection to be made by June 30, 1999. If you have any questions about this RFP, please contact Christy Teague, Senior Planner, at (949) 644 -3207. Attachments 1. Standard Requirements and Authority of the City of Newport Beach 2. Letter from Business Improvement Districts to City Council dated August 18, 1998 FA ... \BID \COORD\RFP D • 0 ATTACHMENT 0 STANDARD REQUIREMENTS AND AUTHORITY OF THE CITY OF NEWPORT BEACH A. The City of Newport Beach will expect the following requirements to be met by the consultant: 1. Support Materials: The consultant shall prepare all graphics and other supporting materials needed to complete the tasks identified in the scope of work. 2. Administrative Review Process: The consultant shall prepare administrative drafts of all documents for staff review. No study documents may be released to the public without the authorization of staff. 3. Insurance and Hold harmless Clauses: The consultant shall provide proof of comprehensive general liability, vehicle liability and workers compensation insurance. Consultant contracts must also provide indemnification and a hold harmless clause. 4. Billings: Billings shall be based on completion of project and/or each phase of the project and shall be accompanied by a breakdown of the number of hours for each member of the consultant team. B. All reports, data files, illustrations, photographs, charts, maps and/or other similar materials shall become the sole property of the City of Newport Beach and may not be used or reproduced in any form except with the explicit written permission of the City. C. The proposer should expect to have access to the public reports and files of the City in preparing the proposal and the study. D. This Request for Proposal (RFP) does not commit the City to award a contract, to pay any costs incurred in the preparation of the RFP or to procure or contract for services or supplies. The City reserves the right to accept or reject any or all proposals received as a result of this request; to negotiate with any selected qualified representative or to cancel any part or the entirety of this RFP, if it is in the best interest of the City to do so. The City may require the proposers selected to participate in negotiations E Z and to submit such price, technical or other revisions of their proposals as may result from negotiations. E. The City has the authority to terminate its contract with the consultant at any time during the period of the study if it is determined by the City that the Contractor's performance is not satisfactory. F:l.. \\RFP- ATT.DOC 0 UR CITY OF NEWPORT BEACH Page 7 of 9 Pride Day in West Newport. He listed several people and mentioned the involvement of the City and Armstron Nursery, all contributing to help the neighborhood. Cheryle Eichel, President of the Newport Beach Employees Association, stated that she is a user of the Ity's • carpool program. She objected to the elimination of the use of City vehicles for carpooling purposes nd stated that parking spots for City employees have already been decreased due to the increase of visitor spots d the addition o1 electric vehicle parking at the City Hall site. She stated that taking away the City carpool vehic will only increase the number of vehicles driven to City Hall, thus decreasing the number of parking spots ava' le to employees. Luvena Hayton, 235 Poppy, confirmed with the City Council that funds were appropri d to the Corona del Mar median earlier in the evening. CURRENT BUSINESS 12. ORANGE COUNTY MUSEUM OF ART BANNERS. Public Works Director Webb stated that the Musuem of Art is aski to install the banners for a period of ninety days, but that the City does receive requests for banner installati on this section of roadway from other entities. He stated that staff feels the thirty -day period would be more app priate. Council Member Debay confirmed with Public Works D' ector Webb that if no one requested to place banners in the same location as the Museum of Art banners, that a period could be extended by renewal, in thirty -day increments, up to the ninety -day period. Naomi Vine, 50 Villa Point Drive, Director of a Orange County Museum of Art, requested that the 12 -month renewal be approved. She stated that the m eum is hard to find and the banners help out greatly. She also requested that the banner request for an upcoming ecial exhibition be approved. She stated that she would agree with Council Member Debay's suggestion removing the museum banners if other requests were received for the ninety -day period. Lastly, Ms. Vin equested that the temporary banners for the special exhibition be approved at a size larger than is normally appr ed. She stated that no problems with this larger size have been experienced in the past, but they are much more fective in publicizing the event. Motion i e er 1 v to approve a 12 -month renewal of the Encroachment Permit for the eight private banners on Sa lemente Drive and authorize the Public Works Director to approve future annual renewals; and approve the in Ilation of private banners (3' wide x 8' high) on Newport Center Drive East/West ( "Ring Road" for ninety conse tive calendar days with conditions. Without ob' ction, the motion carried by acclamation. 13. SCHEDULED VACANCY ON THE CITY ARTS COMMISSION AND APPOINTMENT BY M OR OF AN AD HOC APPOINTMENTS COMMITTEE. Motion by Mayor Edwards to remove the item from the calendar. Without objection, the motion carried by acclamation. 14. BID (BUSINESS IMPROVEMENT DISTRICT) ADMINISTRATION. Assistant City Manager Wood stated that the request of the Finance Committee and the BID Coordinating Committee is to have the City match the assessments received from the businesses, which totals approximately $140,000. She stated that there are several options before the City Council, including the BID Coordinating Committee's preference that the funds be used for administration and projects. Assistant City Manager Wood stated that regardless of the funding approved, staff feels that the RFP should be prepared and the BID Coordinating Committee should be formalized. Assistant City Manager Wood responded to Council Member Glover's inquiry about future BIDS by stating that any . funding approved would be for existing BIDS only. Additionally, Assistant City Manager Wood stated that the City Council would need to review and approve BID administration proposals and that the actual cost is not yet known. http://www.city.newport-beach.ca.us/CouncilAgendas/MNIO-12.htm CITY OF NEWPORT BEACH Page 8 of 9 Council Member Hedges stated that the City Council has the ability to include future BIDS in the motion if it desires Assistant City Manager Wood confirmed for Council Member Debay that the $140,000 would pay for the BID administration as well as the projects. Assistant City Manager Wood confirmed for Mayor Edwards that identifying the split between administration and projects would be better to do after the proposals are received. Motion by Council Member Noyes to approve matching City funds for BIDS and direct staff to return to the City Council with associated costs for administration and projects; direct staff to prepare and circulate an RFP for BID administration; and direct staff to prepare a City Council Resolution to establish a BID Coordinating Committee. Council Member Hedges stated his surprise that the Newport Harbor Area Chamber of Commerce was not present a the meeting to voice its support, on behalf of the business community, for the City's participation in the BID progran Council Member Noyes stated that the Chamber of Commerce as well as the Visitors Bureau were very active in the process and are a part of the BID Coordinating Committee. Council Member Hedges offered an amendment to the motion to include future BIDS as part of the original motion. Council Member Noyes accepted the amendment. Without objection, the motion as amended carried by acclamation. / 15. PURCHASE OF BALBOA THEATER - 707 EAST BALBOA BOULEVARD. Dayna Pettit, Balboa resident, President of the Balboa Theater organization, stated that she has been ac ' ely involved with the issues in Balboa for approximately twenty years. She feels that the area has been cessful in many improvements, but that many residents don't visit downtown Balboa anymore. She has bee orking for over three years on saving the Balboa Theater and she is encouraged by the City's involvement. M . ettit stated that the purchase of the theater is a textbook example of a joint venture of the public and private s tors to revitalize a business district. She encouraged the City Council to approve the purchase. • Motion by Council Member Hedge to approve and authorize the Mayor to si an agreement for the purchase of the Balboa Theater for $480,000. Council Member Hedges commended the Balboa Performing Arts Th er Foundation, the Planning Department ant the City Attorney's office for their efforts. Council Member Debay congratulZBalboa rea for ag eing on and working hard towards an improvemen t for the area. Council Member John Noyes statea City working with the business community and becoming a partner in endeavors such as this. Mayor Edwards acknowledged [hoa and [he City Council for their support of [his project. Without objection, the motion caron. 16. ORAL REPORT ON E CITIZEN PATROL ACADEMY. Police Chief McDon announced that on September 25, 1998, the Police Department held the first class of the new citizens academy. a stated that 25 students are participating, and they will go through a twelve -week program consisting of o three -hour class per week, covering a wide range of topics. Police Chief McDonell stated that the sessions ar oth informative and interactive, and demonstrate to the citizens the kinds of challenges faced by Police officers n a daily basis. He stated that the students will also get to take part in at least one ride - along. P lice Chief McDonell stated that upon completion of the academy, the students will be eligible to apply for the uniform volunteer corps. He stated that this will be a new program that will provide added police presence in the community. http://www.city.newport-beach.ca.us/CouncilAgendasfMNIO-12.htm is CITY OF NEWPORT BEACH c` 1 COMMUNITY AND ECONOMIC DEVELOPMENT 6` = PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD . NEWPORT BEACH. CA 92658 (949) 644 -3200: FAX (949) 643 -3250 C� SUBJECT: SUGGESTED ACTION: BACKGROUND Hearing Date: Agenda Item No.: Staff Person: October 12, 1995 Christy Teague (949) 644 -3207 REPORT TO THE MAYOR AND CITY COUNCIL FILE C O P Business Improvement District Administration and Request for Matching City Funds A) Approve One of the Following Concepts of Matching City Funds for BIDS, and Direct Staff to Return to City Council with Associated Costs for: 1. Administration Only, or 2. Administration and Projects, or 3. Projects Only, or 4. None of the Above And B) Direct Staff to Prepare and Circulate RFP for BID Administration And C) Direct Staff to Prepare a City Council Resolution to Establish BID Coordinating Committee The City of Newport Beach currently has four Business Improvement Districts (BIDs): Balboa Village, Corona del Mar, Marine Avenue, and the Restaurant Association. Each has its own set of priorities and issues faced by its membership. Representatives of each of the BID Advisory Boards, also known as the BID Coordinating Committee, have been meeting for several months to prepare the attached request for matching City funds to be used for BID administration and to assist the BIDs in funding their individual programs. The annual assessments of the four existing BIDs total approximately $140,000, and the request is for an equal amount of matching funds. The proposal for matching funds originated in January as a request by the Restaurant Association BID to recognize the revenue contributions made by the restaurant industry and to support the BID's promotional activities through City funds matching the BID assessments. At the same time, the City and the BIDs identified and discussed a number of difficulties with current administration of the Business Improvement Districts. A comprehensive analysis of the issues and costs of administration by City departments was presented at the April 13, 1998 meeting of the Finance Committee. • The Finance Committee directed the BIDs to work together on a proposal for increasing their effectiveness with additional funding from the City. Since that time, the BID Coordinating Committee has worked further to prepare the attached letter of request to the City Council. 13 DISCUSSION BID Coordinatine Committee • The attached'proposal letter from the BIDS includes formalizing a BID Coordinating Committee to meet quarterly to facilitate collaboration between the BIDS, the City, the Conference and Visitors Bureau, and the Newport Harbor Area Chamber of Commerce. The Committee has been meeting regularly to develop the attached letter to the City Council, and feels that they can benefit the community by continuing their coordination efforts. BID Administration Issues and Costs Administration of the BIDS by the City is more complicated than originally expected. The April 13, 1998 report to the Finance Committee (attached) includes a comprehensive analysis of the current BID administration procedures, current problems with BID administration, the purposes and benefits of BIDS. and the City commitment to BIDS. It also suggests options for improving BID administration. If matching funds are made available, the Committee expects to use a portion of them for BID administration, which is now provided by City staff (at an estimated cost of $64,287) and BID volunteers. There are some facets of BID administration which must be done by the City, while others may be more efficiently done with outside contractors. These are fully described in the attached report to the Finance Committee. Staff recommends the circulation of a Request for Proposal to allow comparison between contractor and in -house staff costs. Staff also recommends that RFP responses be compared with "Option 2- Increased Support" ($105,680 in -house cost) • described in the Finance Committee report (see page 7 and table) because we believe the current staff level and its associated costs are not sufficient to provide adequate administration of BIDS. If it is more cost - effective to contract out portions of the administration, a one year contract would allow the BID Coordinating Committee and the City the opportunity to evaluate outsourcing costs and levels of service. Promotions and Improvements The remainder of matching funds would be used for promotions and improvements according to the unique needs of each BID. A listing of priorities for each of the BIDS is in their attached letter. One of the early goals of BID formations has been the development of a brochure identifying, promoting, and unifying all of the villages within Newport Beach. Interest in a brochure of this type has become greater as the individual villages have formed BIDS and have increased promotions of their areas. Although there was general agreement by the BID Coordinating Committee on the attached letter of request to the City Council, the issue of a joint promotional campaign was not fully supported, and it is not included in the letter. The Corona del Mar Business Improvement District opposed the brochure because it is exclusively focusing efforts and funds on physical improvements to their village. The Restaurant Association, whose primary purpose is to advertise dining in Newport Beach, felt an overall brochure would be of little additional benefit to them but approved it if it would increase the possibility of approved matching funds. The Marine Avenue BID agreed to the brochure as part of the request for matching funds, but they have their own Page 2 /y Balboa Island brochure which is already widely distributed and felt the new brochure would duplicate the brochure they have in place. The Balboa Village BID supports the joint brochure and • may rely on it exclusively, allowing more of the BID assessment funding to go to physical improvements and other promotions. The idea of a brochure highlighting the villages in -Newport Beach has been discussed over the years by the Economic Development Committee and the Conference and Visitors Bureau as a long -term goal as Business Improvement Districts are formed throughout the City. However, some villages in the City, such as Mariners Mile and McFadden/Cannery Village/Lido, have not formed their own BIDS to provide assessment funding for promotions. Since all of the villages do not have BIDS, the joint promotional brochure has been on hold. In response to these discussions and due to the belief there is a need for a brochure of this type, the Conference and Visitors Bureau has begun to develop the brochure. The Bureau anticipates the costs of later reprints will be paid through matching funds if they are made available. The "Villages of Newport Beach" promotional brochure will be published by the Conference and Visitors Bureau and distributed to area hotels and tourist information centers to benefit both the BID areas and the City as a whole. Due to the Conference and Visitors Bureau development of a brochure and the lack of unanimous support among the BIDS for a brochure of this type, funding for a joint promotional brochure is not included in this request. SUMMARY The request for matching funds is to provide better BID administration and to further the goals of each of the four Business Improvement Districts. This funding is not requested as a one -time budget expenditure, but rather an annual commitment to support the four unique Business Improvement . Districts in the City of Newport Beach both administratively and financially. The City Council may choose to provide matching funds as requested by the BIDS or at a different level. Staff has outlined the following options for the Council's consideration: Administration Only, Administration and Projects, Projects Only, or None of the Above. Regardless of the City Council's action regarding matching funds, staff recommends the circulation Of a Request for Proposal to allow comparison between contractor and in -house staff costs for BID administration. The current staff costs are approximately $64,000, which neither staff nor the BIDS believe provide an adequate level of BID support. If it is more cost - effective to contract out certain administrative tasks, it would allow the opportunity to evaluate the efficiency of outsourcing, and perhaps obtain a higher level of service for less than the estimated $100,000 in -house cost for increased support. Finally, staff recommends that the City Council take steps to formally establish the BID Coordinating Committee. Submitted by: Prepared by: SHARON Z. WOOD RICHARD KURTH CHRISTY D. TEAGUE, AICP Assistant City Manager Deputy Director, Administrative Services Senior Planner Attachments: Letter to City Council from Business Improvement Districts dated August 18, 1998 . City Council Finance Committee Report dated April 13, 1998 Page 3 �b August 18, 1998 0 Honorable Mayor and City Councilmembers City of Newport Beach 3300 Newport Blvd. Newport Beach, CA 92658 -8915 Re: Business Improvement District Administration Dear Mayor and Councilmembers: BACKGROUND The City's first business improvement districts were formed in 1995. Neither our merchants nor City staff had any prior experience with the BID concept, and it was assumed that these organizations would be relatively simple to administer. Over the past few years we have learned that managing BIDs is a more difficult process than originally believed. Our BIDs have no paid employees and have been dependent on volunteers and City staff to handle the daily tasks of operating our organizations. While the existing BIDs tried to build momentum with their promotions and improvements, new BIDs were formed and demands on City staff increased. This situation has led to increasing frustration on the part of both the BIDs and the City. The City's four business improvement districts generate approximately $140,000 per year in private assessments that are used to promote and upgrade the commercial areas of Balboa Village, Marine Avenue, Corona del Mar and to promote the restaurant industry. Last year the Newport Beach Restaurant Association submitted a request to the City for a matching grant to fund additional promotions. In reviewing the Restaurant Association's request for matching funds the City indicated that any consideration of BID matching grants should include a reexamination of how the BIDs are administered and what changes could be made to minimize problems and reduce the burden on City staff. During the past few months our committee of BID representatives has been working with City staff, the Newport Harbor Area Chamber of Commerce and the Newport Beach Conference and Visitors Bureau to develop a recommendation to improve the way the City's BIDs are financed and administered in the future. This letter outlines our committee's recommendations to the City Council. In drafting these recommendations, we have considered the previous discussions at Finance Committee meetings, the suggestions of staff, and the needs of our BID organizations. Also attached is a summary table outlining our recommendations on the assignment of BID administration responsibilities. • All Honorable Mayor and City Councilmembers Page 2 . RECOMMENDATIONS 1. BID Coordinating Committee A BID Coordinating Committee should be appointed by the City Council to facilitate coordination between the BIDs, the Newport Harbor Chamber, the Conference and Visitors Bureau, and the City. This committee would be comprised of the BID presidents, the Conference and Visitors Bureau CEO, the City of Newport Beach Assistant City Manager, and the Newport Harbor Area Chamber of Commerce President, and would meet on a quarterly basis to provide a forum for information sharing and program coordination for the mutual benefit of the member organizations and the City. 2. Financial Administration Under state law the City is given responsibility for the creation and annual renewal of the BIDs. The City Council has authority over the levy and collection of assessments, the approval of expenditures, and the composition of BID advisory boards. Given this legal framework, the City must retain ultimate responsibility for BID administration. The City does . have the option of delegating certain administrative tasks and responsibilities to the BIDs or to outside contractors, however. It is our committee's opinion that City staff is fully capable of managing BID administration in a professional manner if sufficient resources are allocated to these tasks. The option of contracting with a private vendor for administrative support has also been discussed. If the City determines that it would be more cost effective to out - source administrative duties to a private contractor, it is recommended that the City Council authorize the BID Coordinating Committee to work with staff in developing a scope of services and reviewing proposals from qualified vendors. The City Council would retain final contract approval authority. 3. BID Organizational Duties Each BID will continue to assume responsibility for its own meetings, preparing agendas and meeting minutes, publishing newsletters, and election of officers. These tasks will be done primarily by BID volunteers. 4. Annual Renewals The BIDs will assist the City in updating the roster of businesses for the . public notice mailing list and in preparing the required annual reports and proposed budgets. The City or its contractor should retain responsibility for the annual BID renewal proceedings, including public notices, City Council reports, public hearings and protest tabulations. /7 Honorable Mayor and City Councilmembers Page 3 5. BID Funding 0 BID promotions and improvements benefit not only their member businesses, but also contribute to increased tourism, sales tax, property tax and transient occupancy tax citywide. In addition to approximately $140,000 per year in assessments, the BIDs invest over $30,000 in private money each year on special events and promotions, and members of the Newport Beach Restaurant Association alone contribute well over $500,000 per year to local events and charities. Beyond these "hard" dollars, it is estimated that volunteer BID members donate in excess of 10,000 hours per year to BID activities, special events and promotions, with a value of $100,000 assuming a token value of just $10 per hour. The net result is that the BIDs contribute over $770,000 per year to the Newport Beach economy. BIDs' Contribution to the Newport Beach Economy BID assessments $140,000 Special events and promotions 30,000 Charitable contributions 500,000 Volunteer time 100,000+ TOTAL $770,000+ In recognition of the importance of the BIDs to the City and local • economy, it is requested that matching funds equal to the BID assessments (approximately $140,000 annually) be allocated to the BIDs for additional improvements, promotions and to cover the cost of administration. Administrative support: It has become clear that the previous level of administrative support Js not sufficient if the BIDs are to remain viable organizations. City staff has reviewed the tasks and additional man -hours required to provide a basic level of administrative support, and has developed budget estimates for these activities. Although we believe that City staff is fully capable of providing administrative support in a professional manner, it appears from conversations with private contractors that these services could be obtained more economically by contracting with an outside vendor. Outsourcing would also free up City staff to work on other high - priority projects. It is therefore recommended that the City Council authorize staff to work with the BID Coordinating Committee to develop a scope of services and obtain proposals from qualified contractors to assist the City with BID administration. Promotions Improvements and Activities: Our committee has developed the following list of priority projects and activities to be sponsored with matching funds. 0 /'r Honorable Mayor and City Councilmembers Page 4 a. Additional Project Implementation Support In addition to the legal requirements related to BID administration and renewal, we recommend that a modest amount of staff support be provided for the three neighborhood BIDs in the day -to -day tasks required to implement their work programs (since the Restaurant Association currently receives staff support from the Conference and Visitors Bureau, additional assistance is only requested for the three neighborhood BIDs). The amount of support should be proportional to the assessments collected by each BID, and would include coordination between the BID Advisory Boards, the City, other governmental agencies, and vendors, and follow- through to ensure timely project completion. Since the BIDs are dependent on volunteers who have their own businesses to run and City staff is faced with competing priorities, progress on BID projects can be delayed. As a result, public confidence in the BIDs is jeopardized. The Newport Harbor Area Chamber of Commerce has offered to provide limited assistance at no cost to the BIDs in resolving problems and facilitating coordination between the BID boards and other agencies. While this assistance would be very valuable and much appreciated, most of the assistance needed by the BIDs is day -to -day coordination rather than major problem resolution. We believe the appropriate solution is to have a staff person provide this coordination, with the Chamber President available to assist when major problems arise. The designated support person could be either City staff or an outside contractor. b. Additional Improvements and Promotions It is recommended that the remainder of matching funds be allocated to each BID in proportion to the amount of assessments collected. Each year as part of the annual renewal process, the. BIDs will present a proposal to the City Council describing how these matching funds will be used. The proposed use of matching funds for the coming year is as follows: Balboa Village BID • Decorative trash receptacles • Planters • Additional decorative benches E M Honorable Mayor and City Councilmembers Page 5 Marine Avenue BID • Infrastructure /Beautification • Hotel liaison program • Fundraising program to support activitiesrm prove ments Corona del Mar BID • Continue tree replacement program on Coast Highway • Begin decorative sidewalk improvement program Newport Beach Restaurant Association • Promotional video and cable TV campaign CONCLUSION Through their annual assessments on member businesses, the City's four BIDs generate about $140,000 each year in private funds that are used for improving and promoting restaurants and the villages of Newport Beach. When the BIDs' other efforts and volunteer time is included, the total contribution to the local economy is considerably more. We believe the BIDs represent a valuable partnership between the City and the business community, and that matching funds would leverage scarce public dollars to stimulate additional private investment. Such a program could also serve as an incentive for other districts such as Mariners Mile and the Lido /Cannery Village /McFadden Square area to form BIDs, stimulating additional private investment in the City. We appreciate the City Council's support of our BIDs over the past three years, and look forward to discussing this proposal with you soon. Yours truly, Britta Pulliam, President alb Village BID oa hn Blom, Co- Chairman Corona del Mar BID MR David Salisbury, President Newpo each Restaurant Association � o R alind Williams, PresidenUCEO Newport Beach Conference & Visitors Bureau B b Black, Secretary/Treasurer Balboa Villa e BID Don Glasgow, Co irman Corona del Mar BID iue BID Richard Luehls, President Newport Harbor Chamber of Commerce Cc: Dennis Danner, Interim City Manager Sharon Wood, Assistant City Manager 511 0 0 CITY OF NEWPORT BEACH . COMMUNITY AND ECONOMIC DEVELOPMENT ADMINISTRATIVE SERVICES April 13, 1998 TO: Finance Committee FROM: Sharon Wood, Assistant City Manager Dennis Danner, Administrative Services Director SUBJECT: Administration and Funding of Business Improvement Districts (BIDS) SUMMARY BIDS were introduced to Newport Beach three years ago, and there has been a period of learning for the City and the BIDS. The BIDS have learned the importance of good communication with their members, and they have found that they would like to do more than their resources allow. This has resulted in a request for additional financial support from the City. We have realized that administration, coordination and project • implementation require more time and energy than anyone anticipated at the outset. City sta@'s difficulty in providing adequate administrative and other support with existing resources has been frustrating for both the BIDS and the City. In following up on the Finance Committee's direction to prepare a resolution transferring to the BIDS all administrative responsibilities, along with the amount paid by their members in business license taxes, staff has analyzed what is required for good, professional BID administration and what that would cost We have concluded that there are three options for providing BID administration. The first option would continue basic service with City staff, but with some increase in resources to provide the minimum services needed. The second two options would provide a higher level of service. Option 2 would accomplish this with City staff, and Option 3 would involve contracting with the Chamber of Commerce or a private company. The estimated costs of these options range from S83,200 for the basic service level to $74,000 to $130,000 for the higher service level. Staff is suggesting that the Finance Committee and City Council consider the benefit the BIDS provide to the City and the member businesses in determining the level of City support to the BIDS. Stab' believes that even a basic level of service requires some additional resources, and a greater commitment is needed to provide a higher level of service. If there is interest in providing BID support through outsourcing, staff would • obtain more definitive proposals and costs for the Committee's consideration. With that .i;;1 City Council Finance Committee April 13, 1998 Page 2 information available, the Committee may wish to continue discussion of the amount of General Fund money that should be transferred to the BIDS. BACKGROUND Can January 12th the Finance Committee reviewed the Newport Beach Restaurant Association's request that all or part of Association members' business license taxes be returned to the Association for additional advertising and promotions in support of the restaurant industry. A proposal by the Newport Harbor Area Chamber of Commerce to provide limited administrative support to BIDS for a fee was also discussed. At that meeting staff was directed to prepare a draft resolution providing for the transfer to the BIDS of the business license tax paid by their members, along with the transfer of administrative responsibilities from the City to the BIDS. The amount of business license tax paid by BID members is estimated to be about $132,000 annually. In response to this direction from the Finance Committee, staff received advice from the City Attorney on how much of the BID administration function can be contracted, and the Chamber of Commerce revised its proposal to provide a more extensive package of services. In addition, staff felt it would be important to compare costs for continuing, and . improved, service by the City with those for contracting out to the Chamber or a private company. DISCUSSION Current BID Administration Procedures. BID administration involves three basic kinds of activities: frnancial/clerical support, activity support, and policy /public relations. • Financial/clerical support includes such things as developing and updating the list of member businesses, preparing and mailing assessment invoices to member::, collecting assessments, preparing budgets and financial reports, processing vendor invoices, and maintaining financial records. • Activity support involves producing agendas, distributing meeting notices and posting agendas, taking minutes at meetings, facilitating communication between the Board and individual BID members (newsletter::, announcements, etc.), identifying vendors for desired functionstprojects, and arranging for desired services and activities (promotions, improvements, special events, etc.). These activities vary significantly among the BIDS. • City Council Finance Committee April 13, 1998 Page 3 • • The policy /public relations tasks include advising board members on BID programs and priorities; public relations between the BID advisory board and member businesses, the City and other organizations; advisory board elections; and annual renewal hearings before the City Council. The major characteristics of the BIDS are summarized in the table included as Attachment 1. With their current budgets ranging between $15,000 and $70,000 per year, none of the BIDS is large enough individually to support paid staff. Therefore, all of the above administrative duties are handled either by City staff or by volunteer board members. The Restaurant Association receives additional support from the Conference and Visitors Bureau. At the beginning of each renewal cycle the Revenue Division generates lists of potential BID members from various data bases, including water customers, business license files, health department listings, and property tax roles. No single existing City data base is transportable for use in identifying or maintaining information on BID membership, and that has been the source of some of our difficulty to date. This "raw" information is consolidated into one list, then reviewed and edited by City Planning Staff, then further edited and reviewed by respective BID advisory boards. The object of these edits is to delete businesses that have closed, correct errors and add new businesses so that the final BID list is as accurate as possible. Renewal proceedings, which include public notices, staff reports, protest tabulations and City Council hearings, are handled by the Planning Department. Planning staff also works closely with the advisory boards to develop proposed priorities and budgets for the coming year. After the BID renewals are approved by the City Council, the Planning Department and the advisory boards update the member lists again before the assessments are mailed. The Planning Department provides an assessment file to the Revenue Division, which then generates and mails assessment invoices. The Revenue, Accounting and MIS Divisions maintain assessment payment records (income), and the Accounting Division processes vendor payments from the BID accounts and maintains account balance sheets. Planning staff attends most BID meetings, advises the board members on programs and projects, and keeps the boards apprised of City activities affecting the BIDS. The board • members are responsible for scheduling meetings, preparing agendas and minutes, writing -�3 City Council Finance Committee April 13, 1998 Page 4 and distributing newsletters and meeting notices, public relations with members, and carrying out projects. A breakdown of staff time currently spent by the City for BID administration is provided in Attachment 2. It is estimated that Administrative Services staff are spending $30,383 per year, and Planning staff are spending $33,904 per year to accomplish these BID tasks. Current Problems with BID Administration. Staff has identified two primary issues with BID funding and administration. The first is the limitations on BID activities and member outreach due to their small budgets and volunteer labor force. The second issue is the City's continuing difficulty in handling BID administrative tasks with current stalling and operational systems. When the City's first BIDS were established in 1995 it was assumed that once these organizations were in place they would be relatively simple to operate. It was anticipated that the BID assessments would provide a source of private funds to be allocated by the advisory boards for promotions and improvements, and that administrative overhead could be absorbed by the City without additional staff. The experience of the past three years has shown that successful BID administration • requires more time and resources than originally believed. One of the problems has been inadequate coordination between the BID advisory boards and their members. Since the BIDS have no paid staff and all of their board members are volunteers, things like newsletters and meeting announcements have received lower priority than promotional campaigns and streetscape improvements. Some BID members have interpreted this as a closed process by the advisory board in deciding how to allocate assessment funds. This was one of the reasons why the recent Marine Avenue BID renewal was controversial. Another major problem area has been assessment billing and account tracking. One difficulty has been a computer system that was designed to handle other types of accounts and does not have the flexibility required to efficiently process BID billings with a number of different billing rates. In addition, keeping an accurate roster of BID members has been nearly impossible because the turnover in businesses makes this a "moving target." It was initially assumed that the City's business license file could quickly generate an accurate list of BID members. We now know that the business license file requires extensive editing and field checking to eliminate obsolete data, correct errors and add missing information before it can be used to generate assessments. In addition, administrative and financial support to each BID along the lines of preparation of an annual budget and presentation of monthly financial reports on accounts payable and budget status is not currently being provided. • -,H City Council Finance Committee April 13, 1998 Page 5 • An additional source of difficulty has been competing priorities for City staff. When the BIDS came into existence starting in 1995 the Administrative Services Department absorbed the billing and processing for approximately 900 accounts in four BIDS without additional staff. Original conceptions notwithstanding, BIDS are unique. The billing and related customer service activity regarding BIDS has not turned out to be an easy extension of billing processes already in place. Time spent by staff with BIDS now conflicts with other customer service responsibilities (timely responses to phones, mail, complaints, inquiries), and revenue capture efforts (timely billings, audits, allocation corrections, etc.). The Planning Department also handled the new BID workload by reassigning existing staff from other areas of responsibility. Planning staff time spent on BID support affects our progress on other projects such as revitalization of the Balboa Peninsula and the Airport Area and long -term planning for economic development Purpose and Benefit of BIDs. BIDS were introduced to Newport Beach to provide a mechanism for the City's older commercial areas to organize and finance programs to promote business in the districts with private funds. It Kzs expected that the BIDS would have a positive impact on the appearance and vitality of these commercial districts, resulting in higher property values, retail sales volume, and mt:nicipal revenue. Newport • Beach's commercial villages also contribute to local tourism, K}„ ch generates hotel bed tax and sales tax from restaurants and shops outside the BID areas. For every dollar the City receives in increased taxes, the businesses in the BIDS benefit even more from their increased volume of business. Since residential areas are a�jz:ent to the BID districts, their vitality also improves the overall quality of life for residents. Conversely, when commercial areas decline they can become a net drain on the City budget by requiring increased public services such as police and code enforcement City Commitment to BIDS. Although it is difficult to quantify the benefit the City and member businesses receive from the BIDS, staff believes those benefits should be considered in determining how the costs of BID support should be divided between the City and the BIDS. Assuming the City Council determines that the Bros should continue to operate, staff' believes they should have a higher level of support than has been available. Additional resources are needed to preclude continued problems with assessment invoicing and public relations, as well as to prevent other staff functions from being adversely impacted. If the BIDS are considered an important asset to the City, then a higher level of support would be appropriate to provide activity and policy /public relations support in addition to basic administration. Both the Economic Development Committee and the Balboa Peninsula Project 2000 report have recommended that strengthening and expanding the BIDS would have a positive effect on the City. • 0?S City Council Finance Committee April 13, 1998 Page 6 Options for Consideration. Assuming some City support of BIDS is to be continued, . staff' has identified three possible courses of action for management and support of BIDS in the future. These are set forth below. In analyzing these, staff' recommends that the Committee consider that there are two possible levels of City support. A basic level that continues to rely on board volunteers to handle project management, member outreach and public relations is reflected in Option 1. Options 2 and 3 present two alternatives for a higher level that provides professional management to the advisory boards. In analyzing the options available it is also important to keep in mind that, unlike most cities with a single downtown BID organization, Newport Beach has three separate 'village" BIDS plus a citywide restaurant BID. Because of this structure, staff believes that financial administration for all BIDS should be handled by one organization, either the City or a contractor with City oversight, in order to ensure consistency and to beoefit from economies of scale. While it may seem appropriate to allow each BID to make its own arrangements for administration, it must be recognized that the City has ultimate responsibility to ensure that BID financial affairs conform to State law and City Council policy. Allowing each BID to make separate arrangements for administrative support could create inconsistencies and problems for the City in the areas of financial auditing and assessment invoicing. Following are three possible courses of action for administration and management ofBIDs • in the future. The estimated costs of these options, and the current cost of City administration of the BIDS, are shown on Attachment 2. 1. Continue using City staff to provide all administrative services to the BIDS at a basic support level. This option would continue the City's current practice of providing financial and policy /public relations services to the B1Ds, but with the increased dedication of resources required to maintain professional standards. The Administrative Services Department currently provides BID administration services from several of its Divisions (Revenue, Accounting, MIS, and Fiscal Services). The current Administrative Services Department cost to service the four existing BIDS is approximately $30,400 annually, and Planning Department cost (annual renewal proceedings, representation of the City at BID board meetings, and limited additional participation with goal setting and BID activities) is approximately $33,900, for a total of $64,300. It is estimated that an additional $18,900 in staff time (and some internal realignment of responsibilities) would be necessary in order to provide a 0?G City Council Finance Committee April 13, 1998 Page 7 professional level of service, for a total of $83,200 per year. This would assume that the BID volunteers would participate in the editing and verification of member lists used for protest tabulations and assessment invoicing, but the City would have primary responsibility for this critical and time -consuuning job. The additional fnanciallclerical support would include a quarter -time business license field inspector with responsibilities for field verification of the businesses operating within each BID area. The City does not currently conduct regular field verification of businesses in BID areas This additional investment would improve the accuracy of member lists for purposes of assessment invoicing and also for distribution of public notices, meeting announcements and newsletters 2. Continue using City staff to provide all administrative services to the BIDS, but at an increased level. This option would include all of the services included in Option 1, and increase the level of support in the categories of activity and policy /public relations. The additional support would include the following: • Manage all board meetings (agendas, notices, minutes, status reports) i• Provide liaison between the board, the City, and other organizations • Coordinate member outreach and communications (newsletters, etc.) • Provide guidance to the boards on priorities and work programs • Coordinate day -to -day project implementation It is estimated that this enhanced level of services would require $105,680; or an additional $56,971 over current spending. A detailed breakdown of tasks and hours for these services is provided in the attached table. It may be possible for the City to achieve additional efficiency by adding one position for both BID and CDBG administration, and eliminating the existing contract arrangement for CDBG administration. In that case, the General Fund and CDBG would share funding of the position. 3. Contract for a large portion of BID administrative services, at an increased level of support. This option would include professional contract management for the BIDS at the level of support described in Option 2, allowing City staff to devote more tithe to other high- priority projects. This option would free City staff from most, but not . all, BID clerical/financial and activity support functions. City staff would still retain responsibility for annual renewal proceedings, as well as management of the 1�7 City Council Finance Committee April 13, 1998 Page 8 vendor contract, financial audit oversight, and liaison with each BID in a similar fashion as with other organizations such as the Conference and Visitors Bureau, is chambers of commerce and community associations The City would also continue to handle establishment of new BIDS and other public policy matters. The Chamber of Commerce has expressed its willingness to provide this service to help the City and BIDS, and has provided a very tentative proposal for the City's consideration. The Chamber's proposal was prepared before staff did a full analysis of tasks involved, and now it appears that some of the estimates of time required and commensurate expenses were significantly understated. Staff needs to work with the Chamber to provide them better information on which to prepare a fresh proposal if this alternative is to be pursued fiuther. Staff was unable to identify an "industry" of commercial firms which manage or provide service /support to BIDS. However, there are firms which specialize in trade association management, as well as community association and commercial property (shopping center) management. An informational meeting was held with principals of PCM, one of the major firms in the area which is active in managing community associations (both condominium and regular residential) and some shopping centers. BIDS would represent a clearly distinct enterprise for PCM or other firms in the • community management industry. However, the financial/clerical and activity support functions are very much in line with what firms in that industry do. Attending meetings, taking minutes, producing agendas, telephone coordination with board members and other participants, taking direction from the board on special projects —and getting things done, and so on are normal routine for them. They also produce budgets and financial reports, pay all invoices, deal with delinquencies as directed, and maintain separate financial institution accounts for each client During that meeting, it was generally concluded that there is significant functional overlap between most aspects of BID administration and community association or shopping center management PCM indicated that they would probably be interested in submitting a specific proposal to provide administrative support for the BIDS, which would include most financial/clerical and activity support functions detailed above, should they be invited to do so. From the attached letter, which PCM provided after our meeting, they developed a very rough estimate of the cost at $1500 to $2000 per month per BID. That would be a total of $72,000 to $96,000 per year for all four existing BIDS. Staff • City Council Finance Committee April 13, 1998 Page 9 believes that is probably indicative of what other firms in the industry would propose. CONCLUSION The level of service provided to the BIDS will depend on the City Council's determination of the value the BIDS provide to the City. Option 1, continuing to provide administrative services to the BIDS with City staff, would require an increased commitment of staff and resources in order to provide an adequate level of service. The cost of this option is estimated to be approximately $83,200. Options 2 and 3 establish a higher priority for BIDS and, accordingly, set forth a higher level of City support for them. If this level of support were to be provided entirely by City staff (Option 2), the cost is estimated to be $105,700. Option 3 also introduces participation of a third party (either the Chamber or a commercial management firm) to provide an additional level of support, as well as some of the existing administrative/clerical support. The total cost of this option (City costs plus contract costs) is estimated to be $74,000 to $130,000. Option 3 could involve additional services, especially in the area of activity support, that go beyond even the enhanced level of support envisioned with the additional City support specified in Option 2. Alternatively, contractor support at a very basic level could also be explored further, but, based on information received by preliminary telephone contacts, staff believes it to be unlikely that this course of action would be cost effective. RECOMMENDATION If the City Council determines that the BIDs should continue to operate, staff recommends that they be supported at a level no less than described in Option I above. If the City Council determines that BIDs are highly valuable endeavors that warrant greater support, staff recommends that a more detailed examination of the specific role and cost of vendor or Chamber of Commerce support be completed. This would involve discussions with vendors and the Chamber, interim reports to the City Council Finance Committee; and the ultimate determination as to whether it is more functional and cost effective for the City to provide this support entirely (Option 2� or to involve another entity, by contract, to perform a large portion of the day - today support of BIDs (Option 3). Option 3 appears to represent new ground regarding administration and support of BIDs. Other cities either use staff exclusively, or the BIDs themselves are so . large that they employ their own staff. Therefore if the City Council determines that the aIT City Council Finance Committee April 13, 1998 Page 10 option has enough potential to explore further, staff recommends that all relationships be as carefully defined as possible from the outset. When we have a better understanding of the costs for outsourced BID administration, it may be appropriate for the Finance Committee to have additional discussion of the earlier motion to transfer to the BIDS all the administrative responsibilities of managing the BID, along with the Sill amount paid by all their members in business license taxes. If the administrative costs are less than the business license tax revenue, the City Council may wish to retain the remainder of this revenue to provide greater flexibility in use of General Fund dollars. The Council always would have the option of allocating additional funds for BID projects, but would not have made that commitment prior to considering other budget requests and priorities. When it comes to this magnitude of General Fund support of BIDS, a policy that is fair to all concerned may also need to take into account the differing amounts each BID has decided to raise through charges to their membership, and the types of functions each BID is performing. Sharon Z. Wood Dennis Danner "l Assistant City Manager Administrative Services Director Attachments: I. BID Characteristics Table 2. Summary of Cost Comparison of BID Administration Options 3. PCM Letter 3a 0' 0 • VJ U ►H ►'y 1� W U A r.r O ++ Y y u V c vYi O XXIC c Q E � .N y S C r E� oruD� t 'O o o K N H Vf � � v OYO a0 C O O o a4�r $ z V C) . y iii c C = 0 C' u E y O w u _ n m . y c m Y c l° 6 8L u A L c m M O y CO AE ° z a O v1 Y _m c V.2 C. c N K ri .y- p .. rY p m y u ' e u u m 3 8 ,O v .. V C Q u Y p Y O C u = n N A K c w u w+ O c n u C Y Y 9 d x r� �s N u_ Ix y u ON y c y g O N Q mi..OV °V C u E E � y y Y E Y y Y y u C YnAI O n y y ul <Z O �l.d:�C IIL .•V 3/ Y y u V (.� O cE f E � E� oruD� t 'O o o � � � t O O o $ �l.d:�C IIL .•V 3/ U) Z O CL O Z O Q yU) L Q LL OCY) r• Z 0 Q Q Q. O U U) O U a W o 0 0 0 ° e°D e°D °o °o «a) � «° � w w w w 0 U J M Cl) a H O C N � w LO e9 H w w a O 0 v w m A V C LO rn m o CM 0 co N N Tl cc C I to eD to w ww 0 CL w O 0 w V ro tD T Yi eD r n C r- O N m r Q r . e b e9 O Wo 0 w N C O O A v m N (D Q ` R N � m U w en w Z J O O 3 a w CL ILs V N O m J N ¢ a U _ Y 0 to Ict w 0 w J H O H w r e+i m w J 0 r N 'I to w J H O 3a 0 0 0 PROFESSIONAL COMMUNITY _ MANAGEMENT OEM • Richard C. Kurth Deputy Finance Director 3300 Newport Blvd. Newport Beach, CA 92659 -1768 Dear Mr. Kurth, It was a pleasure to meet with you today regarding the management opportunities within the Business Improvement Districts. We are pleased to discuss the services of Professional Community Management (PCM) which have been perfected in 26 years of management PCM is the leader in community association management. PCM has been awarded the designation of Certified Management Firm by the California Association of Community Managers (CACM). This designation certifies our strength in many areas including; fiscal internal controls, insurance coverages to protect the interest of the associations, certification and training of managers, and compliance with strict professional and ethical standards. We have discussed at great length the similarity of the services we provide to commercial and residential owner's associations to those of the Business • Improvement Districts. For the associations under our management we handle the daily financial and operational duties. The board of directors sets policy and makes decisions and PCM, as managing agent for the association, carries out the decisions. Based on our initial discussions we estimate that our monthly fee would be in the range of $1,500 and $2,000 per Business Improvement District. The monthly fee would be determined by considering the number of members, number of meetings, and services performed. • PCM provides full financial services. The head of PCM's accounting department is a CPA who monitors all the financial and accounting procedures so important to the well being of the association. Every client has a separate bank account with separate and complete books and records. We follow the association's delinquency policy and provide advice with regard to policies and collection efforts when applicable. This total in-house processing provides two valuable assets to every client — accountability and timeliness. Our financial, management and customer service systems have been designed for use on our in -house IBM AS /400 Advanced System Computer. A sample financial statement is included for your review. The manager will work diligently with the board of directors of each association to obtain optimum results in the following areas: 23726 Birtcher Drive • Lake Forest. Califomia 92630 -1771 • (714) 768 -7261 '?_6 • Assist in the creation of the Annual Budget and Calendar that will enable the manager and the board of directors to work together as a team in establishing . and accomplishing the goals and objectives of the board of directors. • Coordinate its activities with the board of directors and respond to all member inquiries at the direction of the Board. • Prepare an association newsletter to be mailed to the members facilitating good communication. • Assist the board in preparing the agenda and board packet for its regular meetings. • The manager will make any needed arrangements for meeting room scheduling. • Record and prepare meeting minutes. • Prepare a summary action item list identifying such items as; tasks to be handled, issues to be researched, design of specifications and bids for vendor services, and the person responsible for action item completion. • Work directly with the vendors supplying services to the association. We place a high value on our relationship with our clients, and our goal as your • manager is to ensure a long term relationship built on mutual trust and satisfaction. Thank you for your consideration. If you have any questions please feel free to give us a call. Sincerely, Debbie Buchanan Chief Financial Officer ,�Y 1J