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Home My WebLink About10 - Marine Avenue BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. io June 8, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Kathlyn Bowden, AICP; Economic Development Coordinator 949 - 644 -3230, kbowden(a)newportbeachca.gov SUBJECT: Marine Avenue Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2010 -2011. ISSUE: Should the City Council renew the Marine Avenue Business Improvement District for its 14th year of operation, for the BID's fiscal year of July 15t, 2010 to June 30'h, 2011? RECOMMENDATION: 1. Approve the Marine Avenue Business Improvement District Fiscal Year 2010 -2011 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 22, 2010. 3. Confirm the Marine Avenue Business Improvement District 2010 Advisory Board, as nominated by the 2009 BID Advisory Board, as follows: • Alex Richardson • Sheri Drewry • John Robinson • Anne Moloney • Eldy Galietta • Pam Hubbard HOM Realty Wilma's Patio Amelia's Restaurant Beach Time Realty Barolo by the Sea Persimmon Tree Background Marine Avenue BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 2 The Marine Avenue Business Improvement District (BID) was established January 1, 1996. The District includes the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A. California law requires that an annual report be prepared and 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 22, 2010. The Marine Avenue BID is nearing the end of its 2009 -2010 year of operation and requests renewal of the BID for the fiscal year July 1, 2010 to June 30, 2011. A summary of accomplishments during fiscal year 2009 -2010 as well as the proposed activities and budget for the new fiscal period are provided below. Fourteenth Year District Accomplishments The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: • Installation of artificial turf in Marine Avenue tree wells • Installation of holiday decor /lighting along Marine Avenue • Installation of storefront holiday lighting with participating merchants • Continuation of Balboa Island flag campaign • Maintained top visited Balboa Island sponsored website • Placement of advertising in tourist related publications • Participation with Visitors Bureaus of Newport Beach and Anaheim /Orange County Fiscal Year District Revenues During 2009 - 2010 the District collected approximately $14,500 in member assessments with $8,600 in additional funds remaining to be collected. Its account balance at the beginning of the year was $8,688. The City provided $7,000 in matching funds. The BID has spent approximately $22,500 for approved activities and anticipates spending an additional $5,200 before renewal. It is anticipated that a remaining balance of approximately $1,500 will be carried over into the new 2010 -2011 fiscal year budget. Marine Avenue BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 3 Proposed Activities and Budget: The BID proposes to implement the following programs in the next fiscal year: • Improvement and maintenance of the balboa - island.net website • Installation of holiday themed decorations on Marine Avenue • Creation and promotion of a monthly special event during the Fall, consisting of live music as a draw to consumers to the District • Participation with the Anaheim Orange County Visitors' and Convention Bureau • Installation of wayfinding signs to direct visitors to Balboa Island from strategic locations • Placement of advertising in tourist publications, the Newport Beach and Anaheim Visitor's Guides, and other local publications • Placement of brochures in certified folder racks at regional hotels • Installation of decorative banners and /or American flags on Marine Avenue during the summer months and holiday seasons The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 10 -11 period is approximately $24,800. The implementation of these actions is more fully described in the attached Marine Avenue BID Priorities and Budget Outline for the Fiscal Year 2010 -2011. The Advisory Board of the Marine Avenue Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. It is anticipated that matching funds will be approved by the City Council for the Fiscal Year 2010 -2011 in an approximate amount of $8,500. 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 California law. FUNDING AVAILABILITY: Business Improvement District matching funds are included in the City Manager's recommended budget for 2010 -11 in Account No. 2720 -8250. Prepared by: r THLYN BO EN conomic Development Coordinator Submitted by: �, 11 LI P,-v 2- A-ZL SHARON WOOD Assistant City Manager Marine Avenue BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 4 With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Attachments: Attachment A — FY 10 -11 Annual Report and FY 10 -11 Priorities & Budget Attachment B — Resolution of Intention to Levy 2010 - Exhibit A — BID Boundary Map Attachment "A" MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fourteenth year of the Marine Avenue Business Improvement District. As required by Section 36533 of the California Streets and Highways Code, the annual report shall contain the following information: 1) Proposed Changes to the District Boundary There are no changes proposed to the District boundaries 2) Improvement and Activities for the Fiscal Year of July 2010 to June 2011 The following are activities planned for the new fiscal year: Improvement of Website The District will maintain their website, www.balboa - island.net, listing each of the merchants within the District and containing information relative to visiting the District and its businesses. The Advisory Board has identified several improvements, including enhanced merchant listing, tracking of web visitors, an e- newsletter, and other web marketing strategies. Holiday Themed Decorations The District will decorate public streetlights within the District during the period between Thanksgiving and Christmas. The District's successful program of distributing holiday lights to merchants will also be continued. Special Events The District plans to create and promote a monthly special event during the months of September, October, and November, consisting of live music as a draw to consumers to the District. Memberships The District will continue its membership in the Anaheim Convention and Visitor's Bureau, allowing the ability to advertise to over 600,000 tourists who contact the AVCB for information. Wayfindine Si naee The District will fund individual signs directing visitors to the District at strategic locations. These signs will be fabricated and installed to the specifications of the Citywide Wayfinding and Directional Sign Program. Advertisine The District has planned an advertising program for the 2010 -2011 fiscal year, including quarterly ads in tourist publications distributed to regional hotels, ads in the Newport Beach Visitor's Guide and the Anaheim Visitor's Guide, folder distribution, and advertising in local publications. Banner Program During the summer months and holiday seasons, the District will hang decorative banners and /or American flags from public streetlights in the District to create a sense of place and destination. 3) The costs of these activities are projected as follows: Improvement of Website $ 2,500 Holiday Themed Decorations $ 1,200 Special Events $ 4,000 Memberships $ 800 Wayfinding Signage $ 3,300 Advertising $11,800 Banner Program 1,200 TOTAL $24,800 4) The method and basis of levying the assessment shall be as follows: The benefit assessments will be collected by the City in one installment. The benefit assessment 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 if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. 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 (100 %) 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 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Persons operating in one of the following types of businesses, as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 2 1„ 1. Hairstylists 2. Nail technicians 3. Real estate agents Assessments shall be collected in one annual installment at the beginning of the fiscal year, and be pro -rated for new businesses that open during the fiscal year. 5) Surplus Carryover from Fiscal Year 2009 -2010 The District estimates that approximately $1,500 will be carried over from Fiscal Year 2009 -2010 to Fiscal Year 2010 -2011. 6) Sources of Contributions from other than levy The District estimates that there will be approximately $8,500 contributed to the BID from the City of Newport Beach. 7) Past Year Accomplishments The Fiscal Year of 2009 -2010 was a successful one for the District. The BID instituted and completed the following projects: • Installation of artificial turf in Marine Avenue tree wells • Installation of holiday decor /lighting along Marine Avenue • Installation of storefront holiday lighting with participating merchants • Continuation of Balboa Island flag campaign • Maintained top visited Balboa Island sponsored website • Placement of advertising in tourist related publications • Participation with CVBs of Newport Beach and Anaheim/Orange County The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. 3 Marine Avenue Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available at end of Fiscal Year 2009 — 2010 $ 1,500 Funds to be Collected July 2010 $ 15,000 Anticipated Matching Funds from City $ 8,500 TOTAL AVAILABLE FUNDS $ 25,000 Priorities Amount Improvement of Website $ 2,500 Holiday Themed Decorations $ 1,200 Special Events $ 4,000 Memberships $ 800 Wayfinding Signage $ 3,300 Advertising $11,800 Banner Program $ 1,200 TOTAL EXPENDITURES $24,800 4 I Attachment "B" RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2010 TO JUNE 30, 2011, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Marine Avenue Business Improvement District was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "Act'), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board has prepared an Annual Report for the 2010 -2011 fiscal year which is on file in the Office of the City Clerk; and NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: On June 8, 2010, the Marine Avenue Business Improvement District annual report was filed and approved by the City Council. Section 2: The City Council hereby declares its intention to renew the Marine Avenue Business Improvement District for the 2010 -2011 fiscal year pursuant to the Act. Section 3: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year July 1, 2010 to June 30, 2011 pursuant to the Act. Such benefit assessment shall be unchanged from the previous fiscal year and 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 Resolution No. 10- Marine Avenue Business Improvement District 2 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 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. Section 4: 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 to be added shall in no event exceed one hundred percent of the assessment amount due. 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 businesses shall be pro -rated according to the number of full months remaining in the District's fiscal year. Section 6: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising, and public relations 2. Public area improvements and maintenance programs 3. Promotion of public events that are to take place on or in any public places in the area 4. General promotion of retail trade activities. 5. Administration The implementation of these actions is more fully described in the Marine Avenue Business Improvement District Fiscal Year 2010 -2011 Annual Report, Resolution No. t0- Marine Avenue Business Improvement District { t) 3 which is on file with the office of the City Clerk. Section 7: The location of the District will remain the same: Generally the 200 and 300 blocks of Marine Avenue, as set forth with greater specificity in the map attached as Exhibit A. Section 8: This action is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 22, 2010 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 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 or benefit within the District, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed Business Improvement District renewal and expansion may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658; (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. This resolution shall take effect immediately upon adoption. Resolution No. 10- Marine Avenue Business Improvement District III Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2010. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) Resolution No. 10- Marine Avenue Business Improvement District