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HomeMy WebLinkAbout07 - Balboa Village BID RenewalCITY OF � ?EW PAR T Q @ NEWPORT REACH C9[, FOR�P City CouncH .Staff Report Agenda Item No. 7 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, jcampbell(c�newportbeachca.gov With Assistance from: Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration APPROVED: c+.lfJl A. U TITLE: Balboa Village 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 Balboa Village Association Business Improvement District (BID) for its 15th 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 Balboa Village 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 Balboa Village Business Improvement District 2011 Advisory Board, as nominated by the 2010 Business Improvement District Advisory Board, as follows: • Bob Black Catalina Passenger Service • Butch Wilson Balboa Saloon • Tony George Surfside Silver Balboa Village 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 • Patrick Moore • Ralph Rodhiem • Mike Thompson • Craig Batley FUNDING REQUIREMENTS: Fun Zone Rides Balboa Boat Rental Davey's Locker Baywalk, Inc. — Bungalow Basics The current recommended budget includes $14,000.00 funding for this item. It will be expensed to the Community Development Department, in account 2720 -8250, and this amount is identical to the funds the City contributed last year. DISCUSSION: Background The Balboa Village BID was established April 1, 1996. The BID 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 be prepared and submitted to the City Council and that the City Council hold a Public Hearing each year prior to renewal of a BID. 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. The Balboa Village BID is nearing the end of its 2010 -2011 year of operation and requests renewal of the BID for the fiscal year July 1, 2011 to June 30, 2012. 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. Fifteenth Year BID Accomplishments The Balboa Village BID has sponsored the following promotions and activities during the past twelve months: • Continued holiday decor program, including a community holiday tree and storefront painting by Newport Elementary School students. • Distribution of promotional brochures to local /regional hotels • Sponsored a celebration in conjunction with the Nautical Museum the weekend before the start of the NOSA race. • Maintained and redesigned the website • Provided clean up bags for residents walking their dogs • Participation with Newport Harbor Chamber of Commerce and Visitor's Bureaus of Newport Beach and Anaheim /Orange County • Contributed to the installation of the way finding signs to be located throughout the City • Provided D &O insurance to the board of directors 2 Balboa Village 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 • Held Annual Meeting in late April 2011 • Hung banners along Balboa Boulevard during the summer season Fiscal Year BID Revenues During the fiscal year the BID received approximately $18,500 in member assessments, and had a prior period holdover of $2,077. The City provided $14,000 in matching funds. The BID spent approximately $29,612 for approved activities and anticipates spending another $3,000 before renewal. It is anticipated that a remaining balance of approximately $1,500 will be carried over into the new 2011 -2012 fiscal year budget. A. Proposed Improvements, Activities and Budget The FY 2011 -2012 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: • Upgrading and major program changes to the balboavillage.com website • Installation of holiday themed decorations • Organization of the NOSA Kick -Off Festival, Support of the "Fun Zone Tuesdays" Program, and celebration of the 75th anniversary of the Fun Zone. • Participation with the Newport Beach Chamber • Reimbursement to the City for excess costs associated with the proposed Balboa Village gateway sign • Placement of advertising in tourist publications • Placement of brochures in certified folder racks at regional hotels • Installation of decorative banners on Balboa Avenue • Organization of the Balboa Village BID Annual Meeting • Maintenance of Directors and Operators insurance policy The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in FY 2011 -2012 is approximately $37,500. The implementation of these actions is more fully described in the attached Balboa Village BID Priorities and Budget Outline for the Fiscal Year 2011 -2012. The Advisory Board of the Balboa Village BID expects to raise funds in the amount of $1,000 from event 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 Fiscal Year 2011 -2012 in an amount of $14,000. 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. 3 Balboa Village 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 A M U61 ,GT W, I h7IaN;L9I:UT; 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, Al" Community DevelopYhent Director Attachments: A. BID Boundary Map B. FY 2010 -2011 Balboa Village Annual Report and 2011 -2012 Priorities and Budget C. Resolution of Intention to Levy 2011- i Balboa Village Business Improvement district ��LIC 6 � I f11 Newport Bay f f � ---Z-V rr6 B A�A�E4N $� e o Pacific Ocean Balboa Pier I f f 4 0 100 200 300 Feet -* Balboa Business Improvement ® I f District Boundary Exhibit A NO Attachment "B" BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fifteenth year of the Balboa Village Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. 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 2011 to June 2012 The following are activities planned for the new fiscal year: Website The district has an established website, balboavillage.com, listing each of the merchants within the district and containing information relative to visiting the district and its environs. Sections on history and special events are also featured. Other Internet advertising opportunities will be explored, including the use of social marketing and smart phone label scanning to create interest and a mechanism to determine advertising efficiency. Holiday Events and Decorations The District hangs bows and wreaths during the period between Thanksgiving and Christmas, and has begun a tradition of a community holiday tree lighting and window - decorating event by the children of Newport Elementary School. Special Events Three special events are being planned to help promote the Village as a recreation, shopping, and dining destination. A third annual Ensenada Race Kickoff event, in conjunction with the Nautical Museum, is scheduled in April: support of the Fun Zone Tuesday programs instituted by local merchants will be implemented, and a celebration of the 75th anniversary of the Fun Zone is slated to begin in September. Memberships Membership in the Newport Beach Chamber will be renewed. Parking Lot Upgrades The District will continue reimbursing the City for excess costs for building an entrance sign and up lighting in the Palm parking lot. This is estimated to be $15,000 or so dollars paid over 10 years. $1,500 was paid in the last fiscal year. Advertising A reprint of the brochure advertising the Balboa area is planned, with distribution through Certified Folder Company in the off season months.. I Banner Program The District has contracted with a display company to fly banners from the light standards on Balboa Avenue during the summer season to create a sense of place and destination. This program will be expanded to include double the amount of banners hung from last year. Annual Meeting An annual meeting will be scheduled in late April and the BID will provide refreshments. Administrative Costs The District keeps an Errors and Omissions insurance policy in force to protect the volunteers on the Advisory Board. Bank service charges are also anticipated. Newsletter A newsletter will be distributed to every merchant on a quarterly basis will inform them about programs and participatory events during the year. 3) The cost of these activities are projected as follows: Website $9,000 Parking Lot Upgrades $1,500 Holiday Decorations $7,600 Special Events $4,500 Memberships $500 Annual Meeting $500 Advertising $7,500 Banner Program $3,500 Administrative Costs $1,900 Newsletter $1,000 TOTAL $37,500 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. 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 per year. Insurance 2 2 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 2010 -2011 It is estimated approximately $1,500 will be carried over from Fiscal Year 2010- 2011 to Fiscal Year 2011 -2012. 6) Sources of Contribution from other than levy: The district estimates that there will be approximately $14,000 contributed to the BID from the City of Newport Beach. There may also be less than $1,000 from entry fee proceeds from the Art Fair held in April. 7) Past Year Accomplishments The Fiscal Year of 2010 -2011 was a successful one for the District. The BID instituted and completed the following projects: • Continued holiday decor program, including a community holiday tree and storefront painting by Newport Elementary School students. • Distribution of promotional brochures to local /regional hotels • Sponsored a celebration in conjunction with the Nautical Museum the weekend before the start of the NOSA race. • Maintained and redesigned the website • Provided clean up bags for residents walking their dogs • Participation with Newport Harbor Chamber of Commerce and Visitor's Bureaus of Newport Beach and Anaheim /Orange County • Contributed to the installation of the way finding signs to be located throughout the City • Provided D &O insurance to the board of directors • Held the Annual Meeting in late April 2011 • Hung banners along Balboa Boulevard during the summer season • Advertised in various print publications and brochure distribution. The merchants of the Balboa Village want to thank the City Council for their financial support and efforts on behalf of the BID. 3 9 Balboa Village Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available FISCAL FY End 2010 - 2011 $1,500 Funds to be Collected FY 2011 -2012 $21,000 Anticipated Matching Funds from City $14,000 Anticipated Funds from Special Event $1,000 Total Available Funds $37,500 Priorities Amount Website $9,000 Parking Lot Upgrades $1,500 Holiday Decorations $7,600 Special Events $4,500 Memberships $500 Annual Meeting $500 Advertising $7,500 Banner Program $3,500 Administrative Costs $1,900 Newsletter $1,000 TOTAL EXPENDITURES $37,500 4 10 Attachment °C 1 RESOLUTION NO. 2011- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR JULY 1, 2011 TO JUNE 30, 2012, 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 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 Balboa Village 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 Balboa Village Business Improvement District (BID) for fiscal year 2011 -2012 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: Resolution No. 11- Balboa Village Business Improvement District PAP 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 BID shall be 100 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 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. Public area improvements and maintenance programs Resolution No. 11 Balboa Village Business Improvemegtpjstrict 3 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 Balboa Village 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: Between A Street and Coronado Street on the Balboa Peninsula, 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 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. Resolution No. 11- Balboa Village Business Improveme .strict n 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. ATTEST: Leilani Brown, City Clerk ATTACHMENT: Exhibit A (Boundary Map) Michael F. Henn, Mayor Resolution No. 11- Balboa Village Business Improvemegt Qistrict i Balboa Village Business Improvement district ��LIC 6 � I f11 Newport Bay f f � ---Z-V rr6 B A�A�E4N $� e o Pacific Ocean Balboa Pier I f f 4 0 100 200 300 Feet -* Balboa Business Improvement ® I f District Boundary Exhibit A 10