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HomeMy WebLinkAbout11 - Corona del Mar BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 11 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 @newportbeachca.aov SUBJECT: Corona del Mar 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 Corona del Mar Business Improvement District for its 14th year of operation, for the BID's fiscal year of July 15t, 2010 to June 30th, 2011? RECOMMENDATION: 1. Approve the Corona del Mar 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 Corona del Mar Business Improvement District 2010 Advisory Board, as nominated by the 2009 BID Advisory Board, as follows: • Bernie Svalstad • Tom Nicholson • Jim Walker • Beverly "BY Johnson • Ali Zadeh • Scott Laidlaw • Tina B. Hoover Newport Factoring Nicholson Companies The Bungalow Prudential California Realty The Port Restaurant & Lounge Laidlaw Schultz Architects Hoover Law Office CdM BID 2010 -2011 Annual Report & Resolution of Intention to Levy June 8, 2010 Page 2 DISCUSSION: Background The Corona del Mar Business Improvement District (BID) is nearing the end of its fourteenth year of operation and requests renewal of the District for the fiscal year July 1, 2010 to June 30, 2011. This report summarizes the District's accomplishments during Fiscal Year 2009 -2010, and the proposed activities and budget for the coming year. 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 District includes the area generally located on East Coast Highway from Hazel Drive to Avocado 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. A summary of accomplishments during 2009 and 2010 and proposed activities for 2010 — 2011 are provided below. Fourteenth Year District Accomplishments The Corona del Mar BID sponsored the following promotions and activities during the past year: • Committed funds to City to offset the cost of Corona del Mar streetlight improvements throughout Village • Organized, prepared, and implemented the Corona del Mar VIP Card program promoting Corona del Mar businesses • Maintained the health of the 200 Palms and Hong Kong Orchids along the Coast Highway right -of -way and paid to maintain the planters & irrigation systems • Installed holiday decor in the medians at Marguerite and Coast Highway and on the streetlights /entrance signs in the Village. • Expansion of streetlight banner program to promote Corona del Mar - specific events • Continued design progress on various items called for in the Corona del Mar Vision Plan • Supported Corona del Mar Chamber of Commerce events • Advertised in Corona del Mar Chamber of Commerce business directory Fiscal Year District Revenues During the 2009 -2010 fiscal year the District collected approximately $98,800 in assessments from members, with an additional $15,000 in accounts receivable to be collected by the end of the fiscal year. Its account balance as of the beginning of the CdM BID 2010 -2011 Annual Report & Resolution of Intention to Levy June 8, 2010 Page 3 year was $100,281. The BID received $47,500 in matching funds from the City. The BID has spent approximately $202,000 for approved activities, and anticipates spending an additional $20,000 by fiscal year end. The District's current account balance is approximately $47,886 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $25,000 or less at the fiscal year end, June 30, 2010. Revenue from members in the 2010 — 2011 period is projected to be $109,000, with City Matching revenues projected to be $48,000. $179,876 has been allocated for projected expenses with an anticipated $1,500 remaining at the end of the 2010 -2011 Fiscal Year. Proposed Improvements Activities and Budget The FY2010 -2010 Priorities and Budget Outline, including specific goals for each category, is submitted by the BID Advisory Board as part of the attached Annual Report. The highest priorities for the upcoming fiscal year are: • Creation of engineering plans for the narrowing of Coast Highway, in accordance with the Corona del Mar Vision Plan • Purchase and installation of street furniture (benches, bicycle racks, and bus stops) as needed • Investigation of hanging flower baskets from bus stops and strategic community areas, such as the intersection of Coast Highway and Goldenrod • Landscape maintenance of unplanted tree wells, the planted median at the intersection of Marguerite and Coast Highway, and the Centennial Plaza plant beds • Upkeep and repair of the irrigation backflow valves along Coast Highway • Participation in the Corona del Mar Annual Meeting • Installation of holiday themed decorations, lighting, and decorative streetlight banners • Installation of a streetlight banner program promoting Corona del Mar events • Participation with the Corona del Mar Chamber of Commerce sponsored Christmas Walk • Marketing through the Corona del Mar Chamber of Commerce to provide a website, bimonthly newsletter, an annual business directory, and the Corona del Mar VIP Card merchant discount program • Funding for seasonal decoration of the Dolphin topiaries at the intersection of Marguerite and Coast Highway The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 10 -11 period is approximately $179,876. The implementation of these actions is more fully described in the attached CdM BID Priorities and Budget Outline for the Fiscal Year 2010 -2011. CdM BID 2010 -2011 Annual Report & Resolution of Intention to Levy June 8, 2010 Page 4 The Advisory Board of the Corona del Mar 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 $48,000. 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: XHL�Y BOWDEN Economic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: SHAR N WOOD Assistant City Manager 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" CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fourteenth year of the Corona del Mar 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: Lane Reduction The CdM Vision Plan calls for the narrowing of Coast Highway from three lanes to two before Avocado Avenue, resulting in an additional area at MacArthur and Coast Highway for greater pedestrian access. The District will partner with the City to develop plans, cost estimates, and timelines to begin this project. Street Furniture The District will identify various additional locations for benches, bicycle racks, and bus stops. Such street furniture will be purchased and added as needed. Hanging Baskets Following the test case of creating hanging flower baskets from last year, the District will investigate the installation of hanging flower baskets from bus stops or strategic community areas, such as the intersection of Coast Highway and Goldenrod. Landscanine The District will continue to provide landscape maintenance for the unplanted tree wells, the planted median at the intersection of Marguerite and Coast Highway, and the Centennial Plaza plant beds. The District will also fund the upkeep and repair of the irrigation backflow valves that water the street trees. Outreach The District will provide funds for holding the Annual Meeting, as well as other public relations events and associated mailings as needed. Holiday Decor The District will contract to install holiday - themed decorations, lighting, and decorative streetlight banners. Banner Program The District will establish a rotating banner program on public streetlights within the District to highlight the CdM 5K, the Coastline Classic Car Show, and the Christmas Walk. Christmas Walk The District will contribute funds to the CdM Chamber of Commerce to sponsor the Christmas Walk. Marketing through CdM Chamber The District will continue to contract with the Corona del Mar Chamber of Commerce to provide a website, bimonthly newsletter, an annual business directory and the new CdM VIP Card merchant discount program. Administrative Costs The District will continue to provide Directors and Operators insurance to protect the volunteer Advisory Board. It also will pay for any ancillary mailings or inserts into BID billings. Dolphin Decorations The District will continue to pay for the seasonal decoration of the Dolphin topiaries at the intersection of Marguerite and Coast Highway. 3) The costs of these activities are projected as follows: Lane Reduction $ 25,000 Street Furniture $ 25,000 Hanging Baskets $ 5,000 Landscaping $ 9,160 Outreach $ 3,500 Holiday Decor $ 26,400 Banner Program $ 14,900 Christmas Walk $ 3,000 Marketing through CdM Chamber $ 64,516 Administrative Costs $ 2,900 Dolphin Decorations $ 500 TOTAL $179,876 2 `r 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 fifty percent (150 %) 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 (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: 1. Hair stylists 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 less than $25,000 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 $48,000 contributed to the District from the City of Newport Beach. 7) Past Year Accomplishments The Fiscal Year of 2009 -2010 was a successful one for the District. The District instituted and completed the following projects: 3 • Committed funds to City to offset the cost of CdM streetlight improvements throughout Village • Organized, prepared, and implemented the CdM VIP Card program promoting CdM businesses • Maintained the health of the 200 Palms and Hong Kong Orchids along the Coast Highway right -of -way and paid to maintain the planters & irrigation systems • Installed holiday decor in the medians at Marguerite and Coast Highway and on the streetlights /entrance signs in the Village. • Expansion of streetlight banner program to promote CdM- specific events • Continued design progress on various items called for in the CdM Vision Plan • Supported CdM Chamber of Commerce events • Advertised in CdM Chamber of Commerce business directory The merchants of the Corona del Mar want to thank the City Council for their financial support and efforts on behalf of the BID. 4 Corona del Mar Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available at end of Fiscal Year 2009 — 2010 $ 25,000 Funds to be Collected July 2010 $109,000 Anticipated Matching Funds from City $ 48,000 TOTAL AVAILABLE FUNDS $182,000 Priorities Amount Lane Reduction $ 25,000 Street Furniture $ 25,000 Hanging Baskets $ 5,000 Landscaping $ 9,160 Outreach $ 3,500 Holiday Decor $ 26,400 Banner Program $ 14,900 Christmas Walk $ 3,000 Marketing through CdM Chamber $ 64,516 Administrative Costs $ 2,900 Dolphins 500 TOTAL EXPENDITURES $179,876 5 Attachment "B" RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR 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 Corona del Mar 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 Corona del Mar 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 Corona del Mar 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- Corona del Mar 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 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. 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 Corona del Mar Business Improvement District Fiscal Year 2010 -2011 Annual Report, which is on file with the office of the City Clerk. Resolution No. l0- Corona del Mar Business Improvement District 3 Section 7: The location of the District will remain the same: Generally located on East Coast Highway from Hazel Drive to Avocado 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. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2010. Resolution No. 10- Corona del Mar Business Improvement District a L MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) n Resolution No. 10- Corona del Mar Business Improvement District Y , 40, gIN City of Newport Beach Corona del Mar Business Improvement District gV �4 i L j Business Improvement District Boundary a„ P , s, 11 PG EXHIBIT A kit Q e