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HomeMy WebLinkAbout16 - CdM Business Improvement District RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 16 June 23, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP; Economic Development Coordinator kbowden(o)citv.newport- beach.ca us SUBJECT: Corona del Mar Business Improvement District Renewal: Public Hearing and Resolution for Renewal of the Business Improvement District for Fiscal Year 2009 -2010. ISSUE: Annual renewal of the Corona del Mar Business Improvement District RECOMMENDATION: 1. Conduct the Public Hearing regarding the renewal of the Corona del Mar Business Improvement District; and 2. Adopt Resolution for the renewal of the Corona del Mar Business Improvement District confirming the levy of the BID assessment for the 2009 -2010 fiscal year, unless during the Public Hearing the Council received protests representing 50 percent or more of the total assessment amount. DISCUSSION: Background: On June 9, 2009 the City Council held a public meeting, approved the Corona del Mar Business Improvement District 2009 -2010 Annual Report, and adopted a Resolution of Intention to levy and collect assessments for the District for the Fiscal Year of July 1, 2009 to June 30, 2010. Details regarding the proposed renewal of the District and annual report are provided in the attached June 9, 2009 staff report. A protest hearing must be held each year prior to renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued Corona del Mar BID Renewal Hearing June 23, 2009 Page 2 for at least one year. If protests represent less than 50 percent of the total assessment, the City Council may renew the District. At the time this report was prepared, no letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests at the City Council meeting. Proposed Improvements. Activities and Budget The activities proposed for the new fiscal year include marketing, advertising, public relations, and public improvements and maintenance to benefit Corona del Mar businesses. Further detail regarding the proposed improvements, activities, and budget were provided in the 2009 -2010 Annual Report approved by City Council on June 9, 2009. The estimated budget for these activities is approximately $336,720. It is anticipated that a remaining balance of approximately $83,400 will be carried over into the 2009- 2010 fiscal year budget. The BID expects to collect approximately $111,000 in assessments, and anticipates an additional $48,430 in matching funds from the City. PUBLIC NOTICE: Public notice of the protest hearing and the Resolution of Intention to modify the basis to levy and collect assessments for the renewal of the Corona del Mar Business Improvement District has been published in the Daily Pilot in compliance with state law. Prepared by: Submitted by: THLYN BOWDEN Economic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration "• •1U Attachments: Resolution of Confirmation 2009 - June 9, 2009 Staff Report (recycled) ATTACHMENT A RESOLUTION NO. 2009- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2009 TO JUNE 30, 2010 FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on June 9, 2009 the CORONA DEL MAR Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on June 9, 2009 the City Council adopted and ordered to be published a Resolution of Intention declaring the intention to levy assessments for the CORONA DEL MAR Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010; and WHEREAS, a public hearing regarding the renewal of the CORONA DEL MAR Business Improvement District was held on June 23, 2009 without a protest of majority of the assessment. NOW, THEREFORE, the City Council of the City of Newport Beach hereby renews the CORONA DEL MAR Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010, and confirms the levy of assessments as described in the Resolution of Intention dated June 9, 2009 and published June 13, 2009. 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 23`d day of June, 2009. MAYOR ATTEST: CITY CLERK • CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 June 9, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP; Economic Development Coordinator kbowden (c_)city.newport- beach.ca. us SUBJECT: Corona del Mar Business Improvement District Renewal: 2009 -2010 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2009 -2010. 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, 2009 to June 301h, 2010? RECOMMENDATION: 1. Approve the Corona del Mar Business Improvement District Fiscal Year 2009 -2010 Annual Report. 2. Confirm the Corona del Mar Business Improvement District 2009 Advisory Board, as elected by the BID membership, as follows: • Bernie Svalstad, Chairman Newport Factoring • Tom Nicholson, Vice - Chairman Nicholson Companies • Mark Schulein, Secretary Crown Ace Hardware • Jim Walker, Treasurer The Bungalow • Beverly "BJ" Johnson Prudential California Realty • Ali Zadeh The Port Restaurant & Lounge 3. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 23, 2009. • EXHIBIT B CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT • FISCAL YEAR 2009 -2010 ANNUAL REPORT This is the annual report for the thirteenth year of the Corona del Mar Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. This report covers the District's accomplishments for the previous fiscal year (July 1, 2008 to June 30, 2009) and the proposed activities and budget for the 2009 — 2010 fiscal year. 2008 — 2009 Accomplishments Among the Marine Avenue Business Improvement District accomplishments during 2008 — 2009 are the following: 1. Committed the final $40,000 of matching funds from the City to offset the cost of the medians constructed three years ago. 2. Worked with the City in funding the installation of a signal at Iris Street. 3. Continues progress on various items called for in the CdM Vision Plan. Designs for sidewalk treatments throughout the Village have been presented to the Advisory Board, and additional plans for street lighting and furniture are in progress. Specific designs are being planned for the intersection of • Marguerite and Coast Highway in conformance with the Vision Plan. 4. Secured additional king palms for planting in landscaped medians along the East Coast Highway. 5. Contracted with Roger's Gardens to redevelop the medians at Marguerite and Coast Highway in a more maintenance efficient, California-friendly plant palette. 6. Maintained the health of the 200 Palms and Hong Kong Orchids along the Coast Highway right -of -way. The BID also paid to maintain the planters and irrigation systems. 7. Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk. 8. Installed Holiday Season decorations in the medians at Marguerite and Coast Highway, and on the streetlights and. entrance signs throughout the Village. 9. Contracted with the Chamber to maintain and update the Corona del Mar BID website (www.cdmvillage.com), to educate the public about the CdM Vision Plan and distribute information on the administration and current events of . the BID. 90 • 10.Advertised in the 2009 Corona del Mar Directory distributed by the Chamber. 11. Secured insurance coverage for the BID advisory board. Basis for Levyinq Assessments 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. 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. 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 Fiscal Year District Revenues • During 2008 — 2009, the District collected approximately $111,900 in member assessments, with an additional $25,000 in accounts receivable to be collected by the end of the fiscal year. Its account balance at the beginning of the year was $70,390. The BID received $40,560 in funds from the City. The BID has spent approximately $127,325 for approved activities, and anticipates spending an additional $20,000 by fiscal year end. The District's current account balance is approximately $104,610 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $83,400 or less at the fiscal year end, June 30, 2009. Revenue from members in the 2009 — 2010 period is projected to be $111,000, with City Matching revenues projected to be $49,500. In addition, the City allocated •$100,000 in funds for improvements to the street lights in Fiscal Year 2008 -2009. Those funds were not spent in that fiscal year and will be carried forward to the 2009 -2010 year. The Priorities and Budget include those "committed" funds as part of its planning for the new fiscal year 2009 -2010. Renewal of District The boundaries of the benefit zone will remain the same as fiscal year 2008 - • 2009 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. I Proposed Improvements. Activities and Budget • The Corona del Mar Advisory Board submits the 2009 -2010 Priorities and Budget Outline as part of the Annual Report, including specific goals for each category. The highest priorities for the upcoming fiscal year are: 1. Marketing, advertising and promotion of Corona del Mar. 2. Physical improvements within Corona del Mar. 3. Corona del Mar BID Member and Community Outreach. 4. Implementation of the Corona del Mar BID CdM Vision Plan. The estimated cost of providing the proposed improvements and activities in this report is approximately $336,220.00. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2009- 2010 Fiscal Year. The advisory group of the Corona del Mar 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 2009 -2010 budget. The Board of Directors of the Corona del Mar BID for the 2009 year consists of the following individuals: 1. Bernie Svalstad, Chairman Newport Factoring • 2. Tom Nicholson, Vice - Chairman Nicholson Companies 3. Mark Schulein, Secretary/Treasurer Crown Ace Hardware 4. Beverly "BJ° Johnson Prudential California Realty 5. Jim Walker The Bungalow 6. Ali Zadeh The Port Restaurant & Lounge 7. To be filled by majority vote of the BID Board and confirmed by City Council at a later date. The merchants of Corona del Mar have worked hard to promote and improve their village and wish to express their appreciation for the City Council's continued support of the Corona del Mar Business Improvement District. • • is 0 Corona del Mar Business Improvement District Priorities and Budget Outline July 1, 2009 —June 30, 2010 Funds Available Fiscal End 2008 - 2009 Funds to be Collected July 2009 Anticipated Matching Funds from City .Committed" Funds from City not spent c Uidi mvdnduie Priorities Marketing Physical Improvements/ Maintenance Member and Community Outreach Vision Plan Implementation FY 08 -09 $ 83,400 $ 111,000 $ 49,500 $ 100,000 Amount $ 40,100 $ 11,820 $ 41,000 $239,400 Administration Expense $ 4,400 Total Expenditures $ 336,720 4 Exhibit "C" 0 RESOLUTION NO. 2009- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2009 TO JUNE 30, 2010. 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 2009 -2010 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on June 9, 2009, the Corona del Mar Business Improvement District annual report was filed and approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1'. The City Council hereby declares its intention to renew the Corona del Mar Business Improvement District for the 2009 -2010 fiscal year pursuant to the Act. Section 2: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year July 1, 2009 to June 30, 2010 pursuant to the Act. Such benefit assessment shall be as • Resolution No. 09- Corona del Mar Business Improvement District • follows: 2 A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. B. Insurance agencies.that are exempt from City business license regulations shall be assessed $250 per year. C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the District shall . be 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 3: 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 4: 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 5: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing and advertising • 2. Physical improvements Resolution No. 09- Corona del Mar Business Improvement District 3 3. Maintenance Programs • 4. Administration Section 6: 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 23, 2009 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 • Resolution No. 09- Corona del Mar Business trnprovement District E • 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 2009. MAYOR ATTEST: • CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) • Resolution No. 09- Corona del Mar Business improvement District