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HomeMy WebLinkAbout11 - Business Improvement District Administration ConsuF�Ea�Rr � m U �S • C,(I[pP" CITY OF NEWPORT BEACH COMMUNITY AND ECONOMIC DEVELOPMENT PLANNING DEPARTMENT 33� NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (714) 644-3200; FAX (714) 644 -3250 Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL PROPOSAL: Business Improvement District Administration Consultant SUMMARY: August 11, Christy Teague (949) 644 -3207 SUGGESTED ACTION: Authorize Assistant City Manager to execute contract with Cathimarie's 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. On April 26, 1999 the City Council adopted a resolution to establish the BID Coordinating Committee and approved the Request for Proposals for BID Administration. A more complete background is provided in the attached staff reports prepared for the October 12, 1998 and April 26, 1999 City Council Meetings. DISCUSSION Selection Process The interview panel was made up of BID Coordinating Council representatives Richard Luehrs, Jack Callahan, Don Glasgow and John Blom plus staff members Glen Everroad and Christy Teague. The Request for Proposals resulted in five consultant proposals for BID administration assistance. The range of costs and of expertise varied widely, with annual costs from $27,700 to $109,710. The five consultants who made proposals were invited for interviews. Consultants were rated by the panel on factors such as accounting capacities and knowledge; familiarity with City operations; communication abilities with the business district boards, business members and City staff, and familiarity with business improvement districts Consultant Selection The selection committee recommends the Newport Beach firm Cathimarie's be approved by the City Council to assist the City with administration for the BIDs. Scott Palmer and Cathy Palmer, principals of Cathimarie's, have a unique set of accounting and management skills. They have operated their Corona del Mar accounting and management business for thirteen years, and have a favorable local reputation. A more complete background is included in the attached proposal. There was unanimous agreement on Cathimarie's as the chosen consultant for BID administration. The selection committee agreed they would be the best choice even if cost were not a factor. Theirs was the lowest cost proposal at $27,700 per year. The committee appreciated the perspective of the consultant that each dollar spent on administration is one less dollar available for use on business district activities. Both business members and staff on the selection committee are confident Cathimarie's will provide additional efficiency, thoroughness and improved service to Newport Beach Business Improvement Districts. Scott Palmer has been an active participant in the Corona del Mar Business Improvement District for two years. He was recently elected to the BID Advisory Board, but has agreed to not accept his seat on the Board if there is a concern of conflict of interest. CONCLUSION Upon approval by the City Council to execute a contract with Cathimarie's, the City and the consultant will begin work to provide a higher level of service to the Business Improvement Districts. Staff and business members of the selection committee believe Cathimarie's will fill the current voids in service to the satisfaction of the City and the four business improvement districts in Newport Beach. Submitted by: Prepared by: SHARON Z. WOOD CHRISTY D. TEAGUE, AICP Assistant City Manager Senior Planner C/ /J' � 1.t.e;� Attachments: Proposal for BID Administration from Cathimarie's Inc. Page 2 1 C� PROPOSAL TO THE CITY OF NEWPORT BEACH THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT THE NEWPORT BEACH RESTAURANT ASSOCIATION ADMINISTRATION OF FOUR BUSINESS IMPROVEMENT DISTRICTS JUNE 4, 1999 iyil �3S1i11i?)1];31i CATHIMARIE'S INC. 2816 EAST COAST HIGHWAY, SUITE A CORONA DEL MAR, CA 92625 949 721 -8447 949 721 -6821 0 3 To the City of Newport Beach, the Balboa Village BID, the Corona Del Mar BID, the Marine Avenue BID, and the Newport Beach Restaurant Association: Cathimarie's Inc. is pleased to have the opportunity to present the following proposal to the City of Newport Beach and its four Business Improvement Districts. As a member of the Corona Del Mar BID, we are familiar with the needs and ends of that particular entity as well as being familiar with both the businesses and the residents of the community. A Business Improvement District relies upon its achievements and its standing in the community for its very existence. It must serve its merchant/members efficiently and cannot incur heavy administrative costs; rather, its resources must be poured back into the community it springs from. Cathimarie's therefore proposes to achieve the scope of work with a primary principal in mind - to administer the BID's as cost effectively as possible. Sincerely, v � xc� Scott Palmer, Vice President Project Manager Cathimarie's Inc. 2816 East Coast Highway, Suite A Corona Del Mar. CA 92625 949 721 -8447 FAX 949 721 -6821 Il 0 Page 1 0 4 TABLE OF CONTENTS II. EXPERIENCE & QUALIFICATIONS .................................. ..............................6 III. PERSONNEL & MANAGEMENT ...................................... ..............................8 IV. AVAILAILITY & ABILITY TO PERFORM ........................ .............................10 V. BUDGET A. Task 1 ................................................................ .............................10 B. Task 2 ................................................................ .............................10 C. Task 3 .............................................................. ............................... I I D. Task 4 ................................................................ .............................12 E. Task 5 ................................................................ .............................12 F. G. Task 6 ................................................................ Task 7 ................................................................ .............................12 .............................12 VI. ADDENDA Proof of Insurance 0 Page 2 I. STATEMENT OF UNDERSTANDING / SCOPE OF WORK A. Task 1 1. Project Initiation Cathimarie's will contact both the City and the individual BIDS to gather information and to become familiar with each entity's history and method of doing business. This will include, but not be limited to, reading each individual BID's charter, reviewing each BID's membership list with both City and individual BID committees, and reviewing each BID's past minutes to understand the specific histories behind each BID. We anticipate this to be in the form of at least two working meetings with each of the BIDs and two working meetings with City Staff. During these meetings with the BIDs and the City the various timetables for notices and annual renewals will also be scheduled. This is a standard operating procedure that Cathimarie's has completed for each of its many clients when assuming their bookkeeping and business systems, and our twelve years of experience will serve us well in this phase B. Task 2 1. Financial Administration / Bookkeeping a. Introduction The largest part of this project will be the efficient billing and collection of BID dues from merchant/members. The key to this aspect will be the maintenance and updating of the BID membership lists. Additional revenues can be generated by prorating billings from new business applications. Discovery and billing of existing businesses not registered with the Licensing Department of the City can also be expected to increase revenue not currently being realized. This will call for close working relationships with the City Licensing Department and the BID committees themselves, as well as spot on -site checks on the smaller businesses within the BIDs. This process can be roughly broken down into six component parts: Setup, Billing, Deposits, Collections, Payables and Reconciliations b. Setup All work done for this project should be done with commercially available software that is non proprietary and interchangeable. This will give the BIDs flexibility in future billing and database contractor selection. Lists should be in ASCII format so other contractors as well as BID committees can share and update the lists. All effort should be made to reduce the duplicate entry of data between the billing program and other data bases such as the newsletters / mailing lists. Our recommendation for the accounting system would be Quickbooks 99 software, the most popular and accessible software available. Page 3 9 l(, We would also establish a lockbox address using a Past Office Box to collect payments • from and to have correspondence routed through. We would attempt to batch enter the address list from the existing ASCII or Excel spreadsheet data. If this is not possible, we would individually enter each of the 900 BID members in the software program and code them so they could be mailed to as a whole, or divided into individual BIDS. We would also have the capability to sort them according to business type or other data segregation as deemed necessary by the City or the BIDS. We would set up an individual phone number for all BIDS to use in contacting Cathimarie's for billing or other informational inquiries. Additionally, an E -mail address will be set up for e- correspondence with the BID directors and members. c. Billing Custom invoice layouts will be designed and entered into the billing system for each of the individual BIDs. When appropriate, statements will be sent to each of the BID members using the invoice module. Certain statements and messages may be added to the invoices if desired. After 30 days have passed, second notices will be sent out using a delinquent format. We anticipate a 50% nonrenewal rate that will result in a 450 piece second mailing. We anticipate a 10% nonrenewal after 60 days. A final mailing will be made, and after 90 days, a delinquency list will be delivered to the individual BIDs for action. d. Deposits When payments are received from the lockbox, Cathimarie's will enter each payment as received and credit such payment to the appropriate account. This allows Cathimarie's to update the membership records as needed, including change of addresses , partial payments and the like. Cathimarie's will then deposit the payments in the appropriate bank account and generate reports of cash inflow for the use of the BIDs. We recommend duplicate deposit slips be given to the BID treasurers as additional control. e. Collections Collections will be handled by the consultant until certain accounts reach an extended period. Delinquent payers could be posted in the newsletter as bad publicity. As continued efforts to collect can create legal situations the City may want to avoid, a delinquency list will be presented to each BID during the quarterly meetings. If desired, seriously delinquent accounts will be reported to credit agencies or, if necessary, turned over to attorney at the expense of the non paying member. Relief in small claims court could also be pursued - Cathimarie's has had small claims court experience and would handle such claims for a set fee that would be billed to the BID, who in turn would bill the late payer. 0 Page 4 Again, collections could be handled many ways at the discretion of the individual BID. . f Payables Cathimarie's would order computer checks from each BID's bank account. We would create a disbursement / action item form that would be signed by the appropriate BID treasurer and we will issue a check from the computer program as needed for the signature of the BID board. Quarterly statements of expenses and inflows would be provided to each of the BID meetings. g. Reconciliations Bank reconciliations would be done monthly and would be available for review. General ledgers, financial statements and reconciliation statements would be presented at the quarterly meetings C. Task 3 1. Annual Renewals During the initial meetings with the City, a CPM type schedule will be set up with all the relevant dates and action items required to meet the annual renewals and other legal aspects of BID administration. This calendar will then be reviewed with the individual BIDS and actions taken as necessary within the proper time frames. D. Task 4 1. Business Assessment List Maintenance This process would be conducted on two levels, a monthly agenda item and a quarterly review a. Monthly Agenda Items Cathimarie's would present delinquent accounts at the individual BID meetings. At that time the lists would be reviewed with the individual BIDS for any changes known to the committee members. This is based on the assumption that most BIDS will have a working knowledge of their immediate community. Any deletions or additions would be noted and investigated at the quarterly review. b. Quarterly Review Cathimarie's would conduct each quarter a review with the City Licensing Department to identify new business licenses issued. We would then take a physical walk through each district to identify any businesses not registered with the City or to verify any of the changes noted during the monthly BID committee meetings. Page 5 0 rl Any or all changes in the lists will be incorporated into the billing program and pro rata bills sent out to the new businesses either licensed or discovered. E. Task 5 1. Public Meetings At each monthly meeting of the BIDS, Cathimarie's will attend and present the membership lists, the general ledger, reconciliations, a preliminary profit and loss, and balance sheets. Full financial statements will be delivered at the quarterly Coordinating Council meetings. Cathimarie's will attend and contribute as needed to any meetings needed for renewal proceedings. F. Task 6 1.Project Support Cathimarie's will provide any financial reporting, computer database, secretarial or policy assistance support as needed to any BID requesting such. A scope of work with financial estimates will be submitted to each requesting BID before work is commenced on these "special projects ". G. Task 7 1. Board of Director's Support If requested, Cathimarie's will conference with BID presidents, type agendas, attend . meetings, take minutes. From there, all minutes and future agendas can be electronically batched faxed and/or emailed using state of the art communications software to reduce document handling and personnel costs. In order to reduce administrative costs, newsletters should be written and distributed on a voluntary basis by committee members. However, Cathimarie's is ready and able to provide printing preparation, typesetting, editing, writing, production, printing oversight and mailing for preparation and circulation of newsletters. A website could be instituted upon request to reduce newsletter costs for information exchange. II. EXPERIENCE & QUALIFICATIONS Cathimarie's was established in 1984, and moved to Corona Del Mar in 1986. Originally started as a tax preparation service under the direction of Cathy Palmer, additional services such as bookkeeping and property management were added. Over the next several years general business services became available, including computer system analysis, financial analysis, lockbox services, business and marketing plans, life and health insurance, on -site business consulting, and legal typing services. In short, bur business is Page 6 M to provide small to medium companies with general business and administrative services at reduced overhead cost. 10 Administering a BID is very much like property management. Cathimarie's has extensive experience collecting rents and paying bills for commercial, industrial, and residential properties. We have also had extensive experience in administering homeowner's associations. Our standing in Corona Del Mar is impeccable. We prepare financial statements and provide bookkeeping services for many of the most notable businesses in the community. We also are the financial and bookkeeping department for an out of state franchise with a payroll of over one hundred people. Scott Palmer, Vice President, has had extensive experience in public policy and land use planning with his previous experience with the Mission Viejo Company. With eight years experience in dealing with both Orange County California and Douglas County Colorado planning departments, he understands the workings of municipal governments and the importance of properly administered public policy programs. The following companies would be pleased to entertain referrals. Bookkeeping / Financial Realonomics Inc. Walt Boice 949 675 -6700 Pottery Shack Susan Welton 949 494 -1141 Seaview Financial Paul Reed 949 675 -6500 Pacific Coasf Audio Tim Miner 949 640 -5903 Property Management Hensley Realty Philip Anshutz 949 752 -2222 721 Homeowners E. Day Carmen, Esq. 949 729 -3300 List Management / Invoicing Dennis Geiler Inc. Victoria Anderson 949 660 -1040 Land Planning / Public Shea Homes Administration Steve Ormiston 303 791 -8180 (formerly Mission Viejo Company) Page 7 i� III. PROJECT PERSONNEL AND MANAGEMENT r, IMMUM imrs WUWA ' . - u.�.. Scott would be the primary liaison between Cathimarie's, the BIDS and the City. He would assume Task 1, organize and oversee Tasks 2 & 4, would always perform Task 3 personally, and initially perform Tasks 5, 6 & 7. Prior to joining Cathimarie's, Scott Palmer consulted to over 85 companies since 1982. As a general business, marketing, and sales specialist, Scott has had extensive experience in the advertising, legal, industrial design, insurance, real estate, medical, manufacturing, and computer industries. While his expertise includes financial analysis, copywriting, design and corporate market research, his primary focus has been providing general systems analysis to small businesses. Scott is expert in many application programs on both IBM and Macintosh Operating Systems, including financial, database, and drawing applications. Previous to his consulting career, Scott worked for the Advance Planning Division of Mission Viejo Company, a subsidiary of Phillip Morris, Incorporated. Scott has a B.A. in industrial, shelter, and graphic design from U.C.L.A.. He also works as a volunteer with the Corona Del Mar Business Improvement District. Cathy Palmer President Cathy would be the primary backup for all of Scott's responsibilities. She would attend meetings and supervise all facets of the project as needed if Scott is unable to do so. She will be informed and kept up to date on all operations. She would also be available for all phases of Task 2 if necessary. Cathy Palmer has been the president of Cathimarie's Inc. since its inception. As a bonded and licensed tax preparer for the State of California, Cathy is expert in all fields of tax application in both personal and business matters. Having prepared thousands of personal and hundreds of corporate returns, Cathy has also had extensive direct dealing with the IRS and the Franchise Tax Board. In addition, Cathy has appeared as expert witness in court cases and works in conjunction with legal counsel in matters such as offers in compromise and audit representation. Previous to starting her own business, Cathy had worked for NIMAC Tax Service for two years. Prior to that, she was Chief Financial Officer for Greer Concrete, Inc., a general commercial construction contractor. She is also Past President of Soroptimist International of Irvine and works closely with Human Options, both charitable women's organizations. . Page 8 n LJ Tracey would be primarily responsible for the day to day operations of Task 2. She would supervise the data input of changes, the actual invoicing, and the depositing of monies. She would also run the accounts payable and reconciliations. Scott and Melinda would be the designated backups for all of Tracey's responsibilities. Tracey has been with Cathimarie's Inc. for over ten years and is in charge of data processing and financial reporting. She is expert in the use of all versions of Quickbooks, MYOB, Peachtree and TCS, a professional level accounting software system. She currently is responsible for accounts receivable, accounts payable and reconciliation for the Pottery Shack, a Weight Watchers franchise, a residential property management firm, and several smaller companies. She is experienced in all phases of payroll calculation and reporting, and is a licensed and bonded tax preparer as well. She graduated from Irvine High School and is currently completing her Associate Degree in Anthropology from Irvine Valley College. Melinda will be the primary communicator between the team and the BID members. She will answer the private line and will notify other team member of concerns. She will also do various parts of Task 2, including support of Tracey and Scott in data input, list . management, mailings and typing. Melinda has been with Cathimarie's for over five years. She is knowledgeable in all versions of Quickbooks, has excellent typing and organizational skills, and runs most of the office management and ordering. She has been an administrative assistant to several large companies, including executive assistant to the president of one of the largest construction companies in Orange County. She is a graduate of Corona Del Mar High School and Orange Coast College. Geoff will be the secondary liaison between the BIDS and Cathimarie's. We anticipate him administering Tasks 4 and 5, as well as leading necessary projects in Tasks 6 & 7. His strong background as an administrator and his talent in communication would make him an ideal candidate to assume these Tasks after they have been established by Scott. Geoff is an outside consultant used by Cathimarie's for administrative, financial, and computer system matters. Previously a general manager for a local securities and investment firm, Geoff has a securities license and is expert in all types of application Page 9 0 0 software on IBM computer platforms. He has excellent organizational skills and brings an Athenian to detail to record keeping and management. Cathimarie's anticipates his role with the BID project as one of administrator, coordinator, minute taking, and meeting attendance. IV. AVAILABILITY AND ABILITY TO PERFORM One of the great strengths of Cathimarie's is its high level of flexibility in task assignment. All members of the firm are computer literate and are able to run the proposed bookkeeping program independent of all other members: We are therefore not dependent on any one person to assume the responsibilities of the project, but rather can assign personnel on an as needed basis. Still, the estimated time available for each team member on the project would be as follows: Team Member Dedicated Percentage of Time Scott Palmer, Project Manager 40% Cathy Palmer, Support 5% Tracey Rinard, Task 2 Manager 20% Melinda Nulton, Communications 10% Geoff Rickner, Administration 25% V. BUDGET All principal's time will be billed at $65.00 per hour, except in cases where staff tasks are performed by a principal. Staff time is billed at $35.00 per hour. A. Task 1- Initiation 6 hours of meetings @ $65.00 / hr. per BID NTE $390.00 per BID Total NTE $1,560.00 B. Task 2 - Financial Administration / Bookkeeping Setup 900 accounts input @ 20 accounts per hour @ $35.00 / hr. NTE $ 1.75 per acct Estimate* $1,575.00 Billing 900 accounts @ $2.50 per account includes envelope, postage, and bill Estimate* $2,250.00 Second Billing 450 accounts @ $2.50 per account includes envelope, postage, and bill Estimate* $ 1,125.00 Page 10 13. Final Billing 90 accounts @ $2.50 per account includes envelope, postage, and bill Estimate" $ 225.00 Deposits: posting, depositing and preparing reports 1 hr per week @ $35/hr - 50 weeks /yr. NTE $1,750.00 Collections as per presented to BIDS on case by case basis Most fees will be collected from late payers. Payables 10 checks / mo. @ $2.50 per check NTE per BID per year $300.00 Total NTE $1,200.00 Reconciliations $25.00 per month per BID NTE per BID per year $300.00 Total NTE $1,200.00 Supplies - 4 sets checks, misc. office suppliesNTE $1,000.00 Telephone Setup - Install one line, monthly service, voice mail NTE $ 900.00 Total NTE Task 2 $12,675.00 • NOTE: The amount charged to each BID for these noted expenses in Task 2 will be determined by the actual number of members in each respective BID. C. Task 3 - Annual Renewals Hours billed at $65.00 per hour, all materials included. Postage and mailing to be at $0.75 per member. NTE per BID $1,000.00 Total NTE Postage/Handling @ 900 Per Mailing Total NTE Task 3 $4,000.00 $ 675.00 $4,675.00 Page 11 11. 0 0 9 D. Task 4 - List Maintenance One meeting monthly with BiDs 2 hours @ $65.00 NTE per BID per yr. $1,560.00 Total NTE $6,240.00 Four quarterly on site 2 day list maintenance walk throughs NTE per BID per yr. $1,000.00 Total NTE $4,000.00 Total Task 4 NTE cost $10,240.00 E. Task 5 - Public Meetings All meetings included in budgets for Task 3 and Task 4. No additional costs for this item. F. Task 6 - Special Projects All special projects to be billed at $65.00 per hour principal time (Scott & Cathy), $35.00 staff time (all others). G. Task 7 - Board of Directors Support Meeting attendance (staff time) 2 hour @ $35.00 Agenda Preparation & Distribution @ $25.00 per agenda Minute Preparation & Distribution @ $25.00 per set Newsletters bid at assembly time plus printing costs Web page initialization and maintenance $400 /year per BID Total NTE Costs for Tasks 1- 5 Percentage of Total BID Budget ($140,000) $27,700.00 19.8% Thank you for the opportunity to present this proposal. Please feel free to call if we can provide any clarification. Scott Palmer, Vice President Project Manager Cathimarie's Inc. 2816 East Coast Highway, Suite A Corona Del Mar, CA 92625 949 721 -8447 0 Page 12 I3 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 Proiect 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. %(V . 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 Proiect 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 Understanding of the Avproach 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. l� V. 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. Project 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. Availabilitv and Ability o 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. 0 Four copies of the proposal must be received by 5:00 p.m., June 4, 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 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. /Lf 0 VI. SELECTION SCHEDULE • It is expected that interviews for the most qualified consultants will be conducted 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 F:\... \BID \C OO RD\RFP • Iq ATTACHMENT . 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 . 1 o?d • 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:\...N2FP- ATT.DOC 0 E 2 �! August 18, 1998 is 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. 5 U- 0 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 BI Ds 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 h r� Council reports, public hearings and protest tabulations. 01✓ Honorable Mayor and City Councilmembers Page 3 5. BID Funding • 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 is 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. oT 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 0 .0?,5 Honorable Mayor and City Councilmembers Page 5 Marine Avenue BID • Infrastructure /Beautification • Hotel liaison program Fundraising program to support activities /improvements 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 snatching 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, , 2!2A" : Britta Pulliam, President 66b Black, Secretary/Treasurer alboa Village BID Balboa Villa e BID hn Blom, Co- Chairman Don Glasgow, Co- (21hirman Corona del Mar BID Corona del Mar BID of -),U David Salisbury, President Nanc elly,`hresid t Newpo each Restaurant Association Mari Avenue BID r o R alind Williams, President/CEO Richard Lueh s, President Newport Beach Conference & Newport Harbor Chamber of Commerce Visitors Bureau Cc: Dennis Danner, Interim City Manager Sharon Wood, Assistant City Manager 0