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HomeMy WebLinkAbout06 - Newport Beach Restaurant Association BID Renewal� CITY OF r O BEACH City C ouncil Staff Report Agenda Item No. 6 June 14, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department PREPARED BY: James Campbell, Principal Planner (949) 644 -3210, icampbell(a)newportbeachca.gov With Assistance from: Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration APPROVED: _ ,1t —AAA TITLE: Newport Beach Restaurant Association Business Improvement District Renewal: 2010 - 2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 ABSTRACT: Renewal of the Newport Beach Restaurant Association Business Improvement District (BID) for its 16th year of operation, which includes promotions and activities during the BID's fiscal year of July 1st, 2011 to June 30th, 2012. RECOMMENDATION: 1. Approve the Newport Beach Restaurant Association 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 28, 2011. 3. Confirm the Restaurant Association Business Improvement District 2011 Advisory Board, nominated by the general membership at the 2010 Annual Meeting, as follows: Sheri Drewry President Wilma's Patio Jim Walker' Treasurer The Bungalow 1 Newport Beach Restaurant Association Business Improvement District Renewal: 2010 - 2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 2 John Robinson " Ali H. Zadeh' Stephano Albano' Tony Mokatef Chris Ann Richards Dave Salisbury John Bullard Miguel Rodriguez` Nicole Hay Robert Ramirez Sam Tila Steve Kim 'Executive Board Secretary Member at Large Vice President FUNDING REQUIREMENTS: Amelia's Restaurant Port Restaurant & Bar El Torito Grill Tommy Bahama's Wine Lab Harborside Restaurant Newport Landing Maestro's Ocean House 21 Oceanfront The First Cabin Royal Thai Cuisine Five Crowns The current recommended budget includes sufficient funding for this item. It will be expensed to the City account in the Community Development Department, 2720 -8250, and this amount is identical to the funds the City contributed last year. DISCUSSION: Background The Newport Beach Restaurant Association (NBRA) Business Improvement District (BID) was established November 13, 1995. The BID boundaries are coterminous with the Newport Beach corporate limits as set forth with greater specificity in the map attached as Exhibit A. The BID is nearing the end of its fifteenth year of operation and requests renewal of the BID for fiscal year 2011 -2012. California law requires that an Annual Report be prepared and submitted to the City Council and that the City Council hold a Public Hearing each year prior to renewal of a Business Improvement District. The BID's Board of Directors, which serves as the BID Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for June 28, 2011. A summary of accomplishments during fiscal year 2010 -2011 as well as the proposed activities and budget for the new fiscal period are provided below. • Developed and executed comprehensive strategic marketing and public relations plan of work branding Newport Beach as Southern California Premier Dining Destination. • Re- launched an innovative new user friendly web site and foodie blog with enhanced 2 Newport Beach Restaurant Association Business Improvement District Renewal: 2010 - 2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 3 SEO plan, cutting edge technology and online reservation system • Organized, prepared, marketed and implemented the Sixth Annual Restaurant Week campaign in January 2011 • Maintained targeted cost effective distribution of the NBRA Dining Guide • Maintained database and toll -free dining reservation system for all BID restaurants • Developed and executed new and traditional, internet and social media marketing campaigns leveraging promotion of the NBRA BID • Integrated community partnerships, strategic marketing campaigns and co- operative programs with Visit Newport Beach Inc, Anaheim CVB, Anaheim Rapid Transit, Hoag Hospital, American Express, California Restaurant Association, Taste of Newport, Nestle Waters North America and numerous media outlets and sponsors • Secured valuable in -kind media sponsorship and publicity generating visibility and brand awareness for Newport Beach Dining both in and out of market • Sponsored industry- specific seminars (Serve Safe and ABC) and educational campaigns (DUI awareness & EPS ban, etc.) working in concert with the City of Newport Beach and the NBRA BID membership Fiscal Year BID Revenues During the fiscal year the BID received approximately $115,610 in member assessments. The City provided $38,000 in matching funds. The BID was able to raise an additional $53,110 in cash sponsorships for Restaurant Week and other events. Total cash revenue for 2010 -2011 was approximately $206,720. The BID spent approximately $239,000 for approved activities. The BID's current account balance is approximately $61,500 with outstanding liabilities of approximately $20,000. It is anticipated that a year end balance of approximately $40,000 will be carried over into the FY 2011 - 2012 budget. Proposed Activities and Budget The FY 2010 -2011 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 new collateral materials • Printing of informational brochures, stationary and membership decals • Redesign and distribution of the Newport Beach Dining Guide. • Maintenance of the centralized toll -fee phone reservation system • Production and design of new ad campaign • Implementation of local and national advertising campaigns • Maintenance and improvement of newportbeachdining.com website • Utilization of social media marketing and internet campaigns • Participation in cooperative marketing campaigns including a bus wrap 3 Newport Beach Restaurant Association Business Improvement District Renewal: 2010 - 2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 4 • Organization of the NBRA Annual Meeting • Participation with various community events • Participation with Anaheim /Orange County Visitors' and Convention Bureau, California Restaurant Association, Newport Beach Chamber of Commerce, and Visit Newport Beach, Inc. The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 2011 -2012 period is approximately $179,775. The implementation of these actions is more fully described in the attached NBRA BID Priorities and Budget Outline for the Fiscal Year 2011 -2012. The Advisory Board of the NBRA BID expects to raise $53,110 in sponsorships 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 2011 -2012 in an approximate amount of $38,000. 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. ENVIRONMENTAL REVIEW: Staff recommends the City Council find 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. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: Kimberly Brandt, Yap Community Development Director Attachments: A. BID Boundary Map B. FY 2010 -2011 NBRA Annual Report and 2011 -2012 Priorities and Budget C. Resolution of Intention to Levy 2011 -_ 11 Newport Beach Restaurant Association Business Improvement District Boundaries � � � m NO Attachment "B" NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the sixteenth year of the Newport Beach Restaurant Association 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 BID Boundary There are no changes proposed to the BID boundaries. 2) Improvement and Activities for the Fiscal Year of July 2011 to June 2012 The NBRA BID will contract with California Marketing Concepts, Inc. to provide the following programs: Collateral Development: Creative, Production & Printing The BID will create and print a New Establishment informational brochure, and reprint NBRA stationary and NBRA membership decals. Newport Beach Dining Guide The BID will redesign the Newport Beach Dining Guide. Graphic design and production and the NBRA database updates will be accomplished using outside vendors. Ad sales, project management, and advertising coordination will be handled by CMC. An appropriate vendor for printing the guide will be selected. Dining Guide Distribution Plan The BID will distribute the Dining Guide through different vendors to reach the tourist market in regional hotels, airports, large corporation break rooms, and other locations to assure maximum exposure. Phone Reservation System The BID will contract to provide a centralized toll -free phone reservation system for online dining reservations, information, or dining guide requests. Ad Campaign Creative Production and Design The BID will contract to create new brand photography and new advertising campaign copy. Print & Online Media Advertising Campaigns The BID will implement national campaigns through the Visit Newport Beach and the Anaheim Visitor's and Convention Bureau. Local advertising campaigns are planned with the LA Times, the Newport Beach Chamber of 7 Commerce, the Corona del Mar Chamber of Commerce, and other BID media partners. NBRA Website Development The BID will maintain their website, newportbeachdining.com, listing all Newport Beach dining establishments and other information of interest to diners, such as the Newport Beach Restaurant Week. The Advisory Board has identified several improvements, including improved database management and search abilities, restaurant menus display, improved online reservation capability, integrated driving directions, exported Dining Guide data capabilities, and banner ad management. Social Media Marketing & Internet Campaigns The BID will expand utilization of existing Facebook and Twitter accounts and expand newsletter distribution through the internet /email. Public & Media Relations Campaigns The BID will contract with the Business Wire Press Center to provide online PR services. Cooperative Marketing Campaigns The BID will contract with the Anaheim /Orange County Convention and Visitors' Bureau and the Anaheim Resort Transit Authority in cooperative marketing campaigns including restaurant kiosks targeting the Anaheim drive market and a bus wrap advertising campaign. NBRA Annual Meeting The BID will hold its Annual Meeting at a local restaurant, where it will recognize sponsors and provide a review of financial standing of the BID, elect members to the Advisory Board, review program achievements, and ask for feedback from the general membership. Community Event Participation The BID will participate and contribute to the following events: Newport Beach Relay for Life, Police Appreciation Breakfast, Newport Beach Mayor Dinner and other special events. NBRA BID Professional Memberships The BID will maintain memberships with the following entities: Anaheim Convention and Visitors' Bureau, California Restaurant Association, Newport Beach Chamber of Commerce, and Visit Newport Beach, Inc. Marketing & Association Management Fee The BID will contract with California Marketing Concepts to provide BID management, marketing and public relations services. 2 g Restaurant Week Cost Sharing The NBRA BID will provide ancillary funding for the January Newport Beach Restaurant Week in addition to funds allocated to the event by the City. Administration Fee California Marketing Concepts will bill the BID for database management, miscellaneous operational reimbursements and administration fees, annual phone bill, and postage. 3) The costs of these activities are projected as follows: Collateral Development: Creative, Production & Printing Newport Beach Dining Guide Dining Guide Distribution Plan Phone Reservation System Ad Campaign Creative Production and Design Print & Online Media Advertising Campaigns NBRA Website Development Social Media Marketing & Internet Campaigns Public & Media Relations Campaigns Cooperative Marketing Campaigns NBRA Annual Meeting Community Event Participation Restaurant Week Cost Sharing NBRA BID Professional Memberships Marketing & Association Management Fee: Administration Fee TOTAL: $1,000 $22,000 $11,950 $5,000 $6,000 $19,575 $9,600 $12,500 $3,500 $15,000 $2,500 $1,400 $25,000 $750 $36,000 $8,000 $179,775 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. Assessments shall be collected at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. For establishments with greater than ten (10) employees, and whose business license tax is less than $600, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code plus an additional $65. For establishments with greater than ten (10) employees, and whose business license tax is $600 or more, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code plus an additional $145. 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. 3 9 5) Surplus Carryover from Fiscal Year 2010 -2011 The BID estimates that $40,000 will be carried over from Fiscal Year 2010- 2011 to Fiscal Year 2011 -2012. 6) Sources of Contributions from other than levy The BID estimates that there will be approximately $38,000 contributed to the BID from the City of Newport Beach. In addition, the BID anticipates receiving $3,570 from sponsors of the annual luncheon and $21,000 from sponsors of the Dining Guide. 7) Past Year Accomplishments The Fiscal Year of 2010 -2011 was a successful one for the BID. The BID instituted and completed the following projects: • Developed and executed comprehensive strategic marketing and public relations plan of work branding Newport Beach as Southern California Premier Dining Destination. • Re- launched an innovative new user friendly web site and foodie blog with enhanced SEO plan, cutting edge technology and online reservation system • Organized, prepared, marketed and implemented the Sixth Annual Restaurant Week campaign in January 2011 • Maintained targeted cost effective distribution of the NBRA Dining Guide • Maintained database and toll -free dining reservation system for all NBRA BID restaurants • Developed and executed new and traditional, internet and social media marketing campaigns leveraging promotion of the NBRA BID • Integrated community partnerships, strategic marketing campaigns and co- operative programs with Visit Newport Beach Inc, Anaheim CVB, Anaheim Rapid Transit, Hoag Hospital, American Express, California Restaurant Association, Taste of Newport, Nestle Waters North America and numerous media outlets and sponsors • Secured valuable in -kind media sponsorship and publicity generating visibility and brand awareness for Newport Beach Dining both in and out of market • Sponsored industry- specific seminars (Serve Safe and ABC) and educational campaigns (DUI awareness & EPS ban, etc.) working in concert with the City of Newport Beach and the NBRA BID membership The merchants of the Newport Beach Restaurant Association want to thank the City Council for their financial support and efforts on behalf of the BID. 4 10 Newport Beach Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2011 — June 30, 2012 Funds Available FY End 2010 — 2011 $40,000 Funds to be Collected FY 2011 -2012 $90,000 Anticipated Matching Funds from City $38,000 Anticipated Funds from Sponsorships $24,750 TOTAL AVAILABLE FUNDS $192,750 Priorities Amount Collateral Development: Creative, Production & Printing $1,000 Newport Beach Dining Guide $22,000 Dining Guide Distribution Plan $11,950 Phone Reservation System $5,000 Ad Campaign Creative Production and Design $6,000 Print & Online Media Advertising Campaigns $19,575 NBRA Website Development $9,600 Social Media Marketing & Internet Campaigns $12,500 Public & Media Relations Campaigns $3,500 Cooperative Marketing Campaigns $15,000 NBRA Annual Meeting $2,500 Community Event Participation $1,400 Restaurant Week Cost Sharing $25,000 NBRA BID Professional Memberships $750 Marketing & Association Management Fee: $36,000 Administration Fee $8,000 TOTAL EXPENDITURES $179,775 11 12 Attachment °C" 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2011 TO JUNE 30, 2012, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Newport Beach Restaurant Association 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 WHEREAS, on June 14, 2011, the Newport Beach Restaurant Association 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 Newport Beach Restaurant Association Business Improvement District (BID) for the 2011 -2012 fiscal year pursuant to the Act. Section 2: The City Council hereby declares the intention to levy assessments for the BID for the fiscal year July 1, 2011 to June 30, 2012 pursuant to the Act. Such benefit assessment shall be as follows: A. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. B. For establishments with greater than ten (10) employees, and a license tax less than $600, the benefit assessment shall be equal to the City's usual annual business license tax as Resolution No. 11- NBRA Business Improvement District 13 FA established pursuant to Chapter 5.08 of the Municipal Code plus an additional $65. C. The assessment for all businesses whose license tax is $600 or greater, the benefit assessment within the BID shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code, plus an additional $145. Section 3: 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 4: The benefit assessments shall be collected by the City in one annual installment, with collections for new businesses in the BID 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 BID's fiscal year. Section 5: 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. 3. Promotion of public events. 4. The general promotion of restaurant trade activities. 5. Educational and training classes for members 6. Memberships in various organizations deemed to promote dining in Newport Beach. The implementation of these actions is more fully described in the Newport Beach Restaurant Association Business Improvement District Fiscal Year 2010- 2011 Annual Report, which is on file with the office of the City Clerk. Section 6: The location of the BID will remain the same: Any restaurant doing business within the boundaries of the City of Newport Beach is part of the BID. Resolution No. 11- NBRA Business Improvement District WO 3 BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 28, 2011 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 BID, the extent of the BID 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 BID which pay fifty percent or more of the total assessments to be levied, no further proceedings to renew the BID 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 BID, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed BID 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 2011. r_llmr * *n Leilani Brown, City Clerk ATTACHMENT: Exhibit A (Boundary Map) Michael F. Henn, Mayor Resolution No. 11- NBRA Business Improvement District -f 5 10 Newport Beach Restaurant Association Business Improvement District Boundaries lal 03 12