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HomeMy WebLinkAbout06 - Balboa Village BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 June 14, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel Trimble, Program Manager 949/644 -3230. dtrimble @city.newport- beach.ca.us SUBJECT: Balboa Village Business Improvement District Renewal: Annual Report for Shortened Fiscal Year 2005 and Adoption of Resolution of Intention to Levy for Fiscal Year 2005 -2006. ISSUE: Annual renewal of the Balboa Village Business Improvement District. RECOMMENDATION: 1. Approve Balboa Village Business Improvement District 2005 Short Year Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for June 28, 2005. DISCUSSION: Background: The Balboa Village BID was established April 1, 1996. The District includes the area between A Street and Coronado Street of the Balboa Peninsula as set forth with greater specificity in the map attached as Exhibit A. California law requires that an Annual Report, summarizing the District's prior year accomplishments, be prepared and that a public hearing be held each year prior to renewal of the District. The BID's Board of Directors, which serves as the District Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for June 28, 2005. The Balboa Village Business Improvement District (BID) is nearing the end of its short year of operation and requests renewal of the BID for the fiscal year July 1, 2005 to June 30, 2006. This renewal will bring the BID's Fiscal Year period into conjunction with the Balboa Village BID Renewal Hearing June 14, 2005 Page 2 City's Fiscal Year. A summary of accomplishments during Short Year 2005 as well as the proposed activities and budget for the new fiscal period are provided below. BID Renewal Synchronization: City Staff reviewed the renewal periods for all four of the City's business improvement districts. Each of the Districts had renewal periods that were not synchronized with the City's fiscal year. Staff determined that efficiencies in Administration of the Districts would be realized if all four Business Improvement Districts were renewed in synch with the City's Fiscal Year. Therefore, Staff recommended that the Balboa Village Business Improvement District be renewed for three months during the period of April 1, 2005, and June 30, 2005. The Council agreed and that short term is now expiring. The Balboa Village BID now requests a renewal period from July 1, 2005 to June 30, 2006 in order to match the City's Fiscal Year. Short Year District Accomplishments: The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past three months: • Arranged for a cooperative program with Fun Zone Rides to distribute existing Balboa Village promotional brochures throughout 440 tourist destinations, including many hotels in the Anaheim and Airport areas. • Prepared for a series of concerts in the park on Thursday Nights, bringing in local residents and visitors for promotional and cultural enrichment. • Provided clean up bags for residents walking their dogs. • Maintained membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention Bureau. • Maintained the www.balboanewportbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. • Paid for insurance coverage for the association. Fiscal Year BID Revenues: During the short year the BID billed approximately $3,500 in member assessments for the short three -month period, and had a prior period holdover of $6,700. The BID spent approximately $3,800 for approved activities and anticipates spending another $1,400 before renewal. It is anticipated that a remaining balance of approximately $5,000 will be carried over into the new 2005 -2006 fiscal year budget. Balboa Village BID Renewal Hearing June 14, 2005 Page 3 Proposed Activities and Budget: The activities proposed for the new fiscal year include marketing, advertising, public relations, and public improvements and maintenance to benefit Balboa Village businesses. The estimated budget for these activities is approximately $27,000 for the fiscal year. The Balboa Village BID appreciates the City Council's continued support. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: None Required Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Submitted by: Prepared by: SHARON Z. WOM DANIEL R. TRIMBLE Assistant City M nager C & ED Program Manager With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A — BID Boundary Map Exhibit B — Short Year 2005 Annual Report Exhibit C — Resolution of Intention to Levy 2005 'J J 1-11eLic Balboa Village Business Improvement District a � J J J J J J J Y J J J Pacific Ocean i� Balboa Prr 0 100 200 300 Feet J / Balboa Business Improvement ® J , District Boundary J J J '.., zF,;�i',t�`•', :ire = "'�: Newport B'.: "►�. Exhibit A A EXHIBIT B BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT 2005 (SHORT YEAR) ANNUAL REPORT This is the annual report for the tenth year of the Balboa Village Business Improvement District (BID), as required by Section 36533 of the California Streets and Highways Code. This report covers the BID's accomplishments for the previous shortened fiscal year (April 1, 2005 to June 30, 2005) and the proposed activities and budget for the 2005 — 2006 fiscal year. The boundaries of the benefit zone will remain the same as Short Year 2005 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. While the Short Year period was only three months long, several programs were instituted and planned for. Among the Balboa Village BID accomplishments during Short Year 2005 are the following: * Arranged for a cooperative program with Fun Zone Rides to distribute existing Balboa Village promotional brochures throughout 440 tourist destinations, including many hotels in the Anaheim and Airport areas. * Prepared for a series of concerts in the park on Thursday Nights, bringing in local residents and tourists for promotional and cultural enrichment. * Provided clean up bags for residents walking their dogs. * Maintained membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention Bureau. * Maintained the www.balboanewportbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. * Paid for insurance coverage for the association. The improvements and activities to be provided for the coming Fiscal Year of July 2005 to June 2006 year include: 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events that are to take place on or in any public places in area. 4. Decoration of any public place in the area. 5. Public area improvements and maintenance activities. 6. The general promotion of retail trade activities. 7. BID liability insurance The estimated cost of providing the proposed improvements and the activities described in this report is approximately $27,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2005 - 2006 fiscal year. The benefit assessments will be collected by the City in one annual installment, which shall be equal to one hundred percent (100 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Municipal Code, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Individuals with more than one business entity within the assessment boundaries shall only be required to pay the District assessment for the largest business, shall be exempt from assessments on additional businesses within the District, and shall continue to pay required business license fees in accordance with Chapter 5.08 of the Municipal Code. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 for the shortened assessment period. Insurance agencies that are exempt from City business license regulations shall be assessed $250.00 for the shortened assessment period. Assessments shall be collected in one annual installment at the beginning of the for the shortened assessment period, and be pro -rated for new businesses that open during the for the shortened assessment period. The amount of surplus carried over from the 2005 short year is anticipated to be approximately $5,000 at the year end, June 30, 2005. The advisory group of the Balboa Village BID may raise additional funds through various events and fundraisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2005 -2006 budget. The merchants of Balboa Village appreciate the efforts of the City Council and your continued support of their BID. 2 M Balboa Village Business Improvement District Priorities and Budget Outline July 1, 2005 — June 30, 2006 Funds Available FY End 2003 -2004 5,000 Matching Funds from City 2005 10,200 Funds to be Collected June 2005 12,500 Total Available Funds $27,700 Marketing & Advertising $23,300 1. Maintain memberships with NB CofC /NB CVB 2. Print advertising 3. Web Site 4. Direct -mail 5. Summer Promotions 6. Concerts / Other Promotions Outreach Programs $600 1. Monthly newsletter 2. Meeting notices 3. Maintain open communication with residents, BIDS and City Council 4. Construction mitigation campaign Maintenance $900 1. Doggie Walk Bags Administration $2,200 1. Insurance / Other Administration Total Planned Expenditures $27,000 3 !1 EXHIBIT C RESOLUTION NO. 2005- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2005 TO JUNE 30, 2006, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Balboa Village Business Improvement District was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "Act'), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the District Advisory Board has prepared an Annual Report for Short Year 2005 which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report filed by the District Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities provided during the 2005 Short Year, a proposed program for the Fiscal Year 2005 -2006, the District 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 July 1, 2005 to June 30, 2006 pursuant to the Act. Section 3: The boundaries of the benefit zone are on the Balboa Peninsula between A Street and Coronado Street, as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Section 4: The City Council intends to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: A. 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. 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 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 5: The benefit assessments shall be collected by the City in one installment, with collections for new businesses in the District on the day of the issuance of a business license by the City. The assessment for new businesses shall be pro -rated according to the number of full months remaining in the District's fiscal year. Section 6: The penalty for delinquent payments shall be twenty five percent per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 7: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising and public relations; 2. Brochure development and distribution; Resolution No. 2005 - Balboa Village Business Improvement District 3. Promotion of public events that are to take place on or in any public places in the area; 4. Decoration of any public place in the area; 5. Public area improvements and maintenance activities; 6. The general promotion of retail trade activities. 7. BID liability insurance BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 28, 2005 at 7:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 3300 Newport Boulevard, Newport Beach, California at which time the Council will hear all interested persons for or against the 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 business ownership and validate the particular protest. If written protests are received by the owners of businesses within the District that pay fifty percent or more of the total assessments to be levied, no further proceedings to renew the District shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specific type or types of improvements or activity within the District, those types of improvements or activities shall be eliminated. Further information regarding the proposed Business Improvement District renewal may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92663. Telephone: (949) 644 -3225. The City Clerk shall cause this Resolution of Intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. Resolution No. 2005 - Balboa Village Business Improvement District This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting and thereon held on the day of MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map 2005. Resolution No. 2005 - Balboa Village Business Improvement District