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HomeMy WebLinkAbout05 - Corona del Mar Business Improvement Districta CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 33� NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (P4) 644 -3z-% FAX (714) 644-3250 Agenda Item No.: 5 Staff Person: Christy Teague (949) 644 -3207 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Corona del Mar Business Improvement District Renewal, Annual Report for 1999 -2000 Fiscal Year, and Introduction of Ordinance to Modify the Basis for Levying Assessments SUMMARY: This report summarizes the District's accomplishments during the 1998 -1999 fiscal year, its second year of operation, and the proposed activities and budget for the coming year. The Corona del Mar Business Improvement District Advisory Board requests City Council approval of the annual report and scheduling of the public hearing for August 23, 1999. ACTION: 1. Approve Corona del Mar Business Improvement District Annual Report; 2. Adopt the Resolution of Intention and set the public hearing for August 23, 1999; and 3. Introduce Ordinance to Modify the Basis for Levying Assessments. Overview The Corona del Mar Business Improvement District is nearing the end of its second year of operation and requests renewal of the District for the fiscal year of September 1, 1999 to August 31, 2000. The Corona del Mar Business Improvement District was established September 1, 1997. The boundaries of the benefit zone remain unchanged: generally properties along East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A. State 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 the 1998 -1999 fiscal year and a list of proposed activities for the new fiscal year are provided below. The District's 1999 -2000 fiscal year activities are proposed to remain the same in the new fiscal year. Minor changes to the assessment methodology are proposed as explained below. 1998 -1999 District Accomplishments The Corona del Mar Business Improvement District has sponsored the following promotions and activities during the past year: • Completion of Coast Highway/Marguerite median widening, lighting and landscaping with seasonal flowers. • First phases of the tree replacement program on East Coast Highway from Ficus to King Palm and Hong Kong Flowering Orchid. • Development and distribution of regular newsletters from the Board of Directors to all members. • Selection, purchase and placement of new terra. -cotta trash receptacles along East Coast Highway. • Support of the Corona del Mar Chamber of Commerce Annual Christmas Walk. • Participation with Corona del Mar Chamber of Commerce and Newport Beach Conference and Visitors Bureau to bring visitors to Corona del Mar. • Coordination with American Institute of Architects, Orange County and the City of Newport Beach for Vision 2004 Design Charrette involving over 20 architects working on Corona del Mar issues. • Work on replacement of green painted medians with more attractive paving. • Work on replacement of white striped highway areas with physical medians. Fiscal Year District Revenues The Corona del Mar Business Improvement District collected approximately $51,000 during the first 10 months of the 1998 -1999 fiscal year, and has spent approximately $20,000 to date for approved activities. Approximately $54,000 was collected in the 1997 -1998 fiscal year. It is anticipated that a remaining balance of approximately $50,000 for projects underway will be carried over into the 1999- 2000 fiscal year. These funds have been designated for the last phases of tree replacement and work on medians along Coast Highway, but have not yet: been paid out of the BID account. The City Council approved matching funds in the City 1999 -2000 fiscal year budget for administration of the BIDS, with the remainder funds to be distributed to the BIDS. Although the amount is not known at this time, the Corona del Mar Business Improvement District will be receiving additional funds from the City in the 1999 -2000 fiscal year. Proposed Improvements, Activities and Bu The priorities and budget outline for the 1999 -2000 fiscal year, including specific goals within each of the categories, has been submitted by the Corona del Mar Business Improvement District Advisory Board as part of the attached Annual Report. The estimated annual budget for providing the proposed improvements and the activities described in this report is approximately $60,000. The highest priorities for the upcoming fiscal year are: 1. Physical Improvements • Tree replacement program • Tree grates and lighting at base of new trees • Lamp poles to light sidewalks • Median improvements and installation ' • Bicycle racks • Trash receptacles along East Coast Highway • Sidewalk enhancement Page 2 0 2. Maintenance • Sidewalk steam cleaning • Landscaping 3. Marketing and Promotions • Work with Corona del Mar Chamber of Commerce and Conference & Visitors Bureau • Print advertising (newspapers, magazines, etc.) 4. Special Events • Corona del Mar Chamber of Commerce Annual Christmas Walk 5. Renresentationof Area Business Interests in Governmental Affairs • Work with City on issues affecting the Corona del Mar business district • Coordinate public works projects to least impact businesses 6. Member Business Communications • Newsletter Assessment Collection The benefit assessment proposed is equal to 150 percent of the City's usual annual business license fee as established,pursuant to Chapter 5.08 of the Municipal Code. In most cases the business license fee is comprised of $106 plus an additional amount for each employee. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Only one assessment shall be levied per business address; therefore independent contractors such as hair stylists, nail technicians and real estate agents working in businesses owned by another person shall be exempt from this assessment. This rate is consistent with what has been paid since the beginning of the Corona del Mar Business Improvement District in 1997. The penalty for delinquent payments will be twenty-five percent per month, provided that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. The proposed assessment change applies to hair salons and nail parlors, which were assessed $156 plus $7.50 per workstation last year. The proposed change is intended to simplify the billing process by assessing hair salons and nail salons the same as other businesses, at 150 percent of the City's usual annual business license fee. Independent hair stylists and nail technicians would continue to be exempt from assessments. This is consistent with the other Business Improvement Districts in the City. Page 3 Conclusion The attached Annual Report further describes the budget and activities for the upcoming year, and has been filed with the City Clerk's office as required by State law. The Corona del Mar, Advisory Board believes the District has been successful in its first two years of existence. The' Corona del Mar Business Improvement District appreciates the City Council's continued support. Submitted by: Prepared by: SHARON Z. WOOD CHR ISTY D. TEAGUE, AICP Assistant City Manager Senior Planner C Attachments: ual Report Draft Resolution of Intention Ordinance to Modify Basis for Levying Assessments Exhibit A - Boundary Map Page 4 0 0 CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 1999 -2000 FISCAL YEAR Overview This is the annual report for the Corona del Mar Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for fiscal year September 1, 1999 to August 31, 2000. Boundaries The boundaries of the benefit zone remain the same: generally properties along East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A. Proposed Activities The improvements and activities to be provided for the fiscal year include: 1. Physical improvements (e.g., medians, lighting, landscaping, street furniture, trash cans, signage, bicycle racks) 2. Maintenance (e.g., sidewalk steam cleaning) 3. Marketing and promotions 4. Special events 5. Representation of area business interests in governmental affairs 6. Member communications Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $60,000. Assessments A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250. C. The assessment for all other businesses operating within the District shall be 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. D. Only one assessment shall be levied per business address; therefore independent contractors such as hair stylists, nail technicians and real estate agents working in businesses owned by another person shall be exempt from this assessment. This proposed assessment schedule is the same as 1997 -1998 and 1998 -1999 for all businesses except hair salons and nail parlors, which were previously assessed $156 plus $7.50 per station. The proposed rate for ;hair salons and nail parlors is the same as most businesses at 150 percent of the annual business license tax. If a business is a food - serving establishment, the BID assessment is in addition to the Restaurant Association assessment. Account Status The District's current account balance is approximately $58,000 at the end of the first ten months of the fiscal year. It is anticipated the balance will be approximately $50,000 at the fiscal year end, August 31, 1999. The District collected approximately $51,000 in the first ten months of the 1998 -1999 fiscal year. The advisory board of the Corona del Mar Business Improvement District may raise additional funds through various events and fiord- raisers in addition to the assessments levied. At this time they do not anticipate raising additional funds for the 1999 -2000 fiscal year budget. However, the City Council approved matching funds in the City 1999 -2000 fiscal year budget for the BIDs to be used to pay for BID administration and the balance distributed to the BIDs. Although the amount is not known at this time, the Corona del Mar Business Improvement District expects additional funds from the City to be allocated to the BID in the 1999 -2000 fiscal year. 1998 -1999 Accomplishments The merchants of Corona del Mar have found their second year as a Business Improvement District to be very successful and have achieved several accomplishments . including: • Initial phases of street tree replacement program on East Coast Highway from Ficus to King Palm and Hong Kong Flowering Orchid. • Development and distribution of regular newsletters from the Board of Directors to all members. • Advertising in the Daily Pilot and Coast Magazine. • Selection, purchase and placement of new terra -cotta trash receptacles along East Coast Highway. • Support of the Corona del Mar Chamber of Commerce Annual Christmas Walk. • Participation with Corona del Mar Chamber of Commerce and Newport Beach Conference and Visitors Bureau to bring visitors to Corona del Mar. • Coordination with American Institute of Architects, Orange County and the City of Newport Beach for Vision 2004 Design Charrette involving over 20 architects working on Corona del Mar issues. • Work on replacement of green painted medians with more attractive paving. • Work on replacement of white striped highway areas with physical medians. The merchants of Corona del Mar have worked hard to promote their village and wish to express their appreciation for the City Council's continued support of the Corona del Mar Business Improvement District. 0 l6 RESOLUTION NO. 99- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRIICT FOR THE FISCAL YEAR OF SEPTEMBER 1, 1999 TO AUGUST 31, 2000, AND TO MODIFY THE BASIS FOR LEVYING ASSESSMENTS, AND FIXING THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Corona del Mar Business Improvement District was established in 1997 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 City Council renewed the Corona del Mar Business Improvement District for one year in 1998 according to State Law; and WHEREAS, the Advisory Board has prepared an Annual Report for the 1999 -2000 Fiscal Year which is on file in the Office of the City Clerk; and 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; and WHEREAS, the Business Improvement District Advisory Board has recommended the basis for levying assessment be modified. 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 in the 1999 -2000 Fiscal Year, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares its intention to renew the Business Improvement District for the fiscal year September 1, 1999 to August 31, 2000 pursuant to the Act. Section 3: The location of the District will remain the same: generally properties along East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 4: The City Council hereby declares its intention 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. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the District shall be 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. �J Resolution No. 99-- Corona del Mar Business Improvement District q C Section 5: The benefit assessments shall be collected by the City in 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 businesseIs 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. Physical improvements 2. Maintenance 3. Marketing and promotions 4. Special events 5. Representation of area business interests in governmental affairs. 6. Member business communications BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on August 23, 1999 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 renewal 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 Resolution No. 99-- Corona del Mar Business Improvement District 4 business ownership and validate the particular protest. If written protests are received by 0 the owners of businesses within the District which 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. 0 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. 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 day of 1999. ATTEST: CITY CLERK MAYOR ATTACHMENT: Exhibit A - Boundary Map Resolution No. 99 -_ Corona del Mar Business Improvement District ORDINANCE NO. 99- 0 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH MOIDIFYING THE BASIS FOR LEVYING ASSESSMENTS IN THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Newport Beach City Council adopted Ordinance No. 97 -24 establishing the Corona del Mar Village Business Improvement District and providing for the imposition of a benefit assessment upon businesses within the District; and WHEREAS, on July 13, 1998 the Newport Beach City Council adopted Ordinance No. 98 -15, which modified the basis for levying assessments in the District upon recommendation of the Corona del Mar Business Improvement District Advisory Board; and WHEREAS, upon recommendation of the Corona del Mar Business Improvement District Advisory Board the City Council desires to modify the basis for levying assessments in the District. NOW, THEREFORE, the City Council of the City of Newport Beach does ordain as follows: WHEREAS, on July 26, 1999, the City Council adopted Resolution No. 99 -_ declaring its intention to levy a benefit assessment on businesses within the District, the proceeds of which shall be used for the public purposes therein described, pursuant to the Parking and Business Improvement Area Law of 1989, Part 6 (commencing with Section 36500) of Division 18 of the California Streets and Highways Code (the "Act'), and introduced this Ordinance; and 0 Ordinance No. 99- Corona del Mar Business Improvement District Page 1 1.2 WHEREAS, on August 23, 1999 the City Council held a public hearing in the City of Newport Beach Council Chambers to receive protests from any persons and affected business owners. The City Council has heard and considered all oral and written protests or other comments regarding such proposed action, and protests from businesses in the proposed area paying a majority of the proposed assessment have not been received; and the City Council finds, based on all evidence presented that the businesses within the District will be benefited by the expenditure of the funds raised by the assessments proposed to be levied. WHEREAS, at the July 26, 1999 public meeting the Advisory Board submitted recommendations to the City Council that the basis for levying the assessment be modified as described in Section 1 below. SECTION 1. Benefit Assessment. Section 4 of Ordinance 98 -15 is amended as follows: Item D pertaining to assessments of hair salons and nail parlors is deleted. SECTION 2. All other provisions of Ordinance 97 -24 and Ordinance 98 -15 shall remain in effect unless changed by future ordinances of the City Council. SECTION 3. This ordinance shall take effect 30 days after passage. PASSED AND ADOPTED by the City Council of the City of Newport Beach at a regular meeting thereof held on the day of '1999. APPROVED AS TO FORM: CITY ATTORNEY 0 FA ... 1 SHARED SLC=CNC1199910726 %ORDI.DOC Ordinance No. 99- Corona del Mar Business Improvement District Page 2