HomeMy WebLinkAbout09 - Corona del Mar BID Renewal�� ��it�,� �.�i�,�� it :�t,.it! �- ��•,�•�;+
Agenda Item No. 9
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(c�newportbeachca.gov
With Assistance from:
Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration
APPROVED: tL.
TITLE: Corona del Mar 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 Corona del Mar 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 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 28, 2011.
3. Confirm the Corona del Mar Business Improvement District 2011 - 2012 Advisory
Board, as nominated by the 2011 general membership, as follows:
• Bernie Svalstad Newport Factoring
• Jim Walker The Bungalow
• Scott Laidlaw Laidlaw Shultz Architects
1
Corona del Mar 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
• Keith Dawson Dawson and Dawson
• Ali Zadeh The Port
• Tom Nicholson Nicholson Companies
• Tina Hoover Law Offices of Tina Hoover
FUNDING REQUIREMENTS:
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 Corona del Mar BID is nearing the end of its fifteenth year of operation and
requests renewal of the BID for fiscal year July 1, 2011 to June 30, 2012. This report
summarizes the BID's accomplishments during fiscal year 2010 -2011, and the proposed
activities and budget for the coming year. 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 BID 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 BID. A summary of accomplishments during fiscal year
2010 -2011 and proposed activities for fiscal year 2011 -2012 are provided below.
Fifteenth Year BID Accomplishments
The Corona del Mar BID sponsored the following promotions and activities during the
past year:
• Designed and installed tree well plantings for 180 tree wells along Coast Highway.
• Committed funds to the City to offset the cost of way finding signs throughout the City.
• Continued the VIP Card program promoting local businesses primarily to residents.
• 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.
• Continued the streetlight banner program to promote area specific events
• Continued design progress on various items called for in the Vision Plan
• Supported Chamber of Commerce events
• Advertised in Corona del Mar Chamber of Commerce business directory
2
Corona del Mar 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
A. Fiscal Year District Revenues
During fiscal year 2010 -2011 the BID collected approximately $95,100 in
assessments from members, with an additional $4,000 in accounts receivable to
be collected by the end of the fiscal year. The account balance at the beginning
of the year was $42,000. The BID received $38,000 in matching funds from the
City. The BID has spent approximately $105,197 for approved activities, and
anticipates spending an additional $20,000 by the end of the fiscal year.
The BID's current account balance is approximately $70,000 at the end of the
first eleven months of the fiscal year. It is anticipated the balance will be
approximately $60,000 or less at the fiscal year end, June 30, 2011. Member
revenue is projected at $91,000 for fiscal year 2011 -2012, with City Matching
revenues projected to be $38,000. $188,000 has been allocated for projected
expenses with an anticipated fiscal year -end balance of $500.
B. 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:
• 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
• Design and implementation of tree well plantings along Coast Highway in the
Hong Kong Orchid and King Palm tree wells.
• Upkeep of hardscape at Centennial Plaza.
• 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 three streetlight banner programs promoting events
• Participation with the Chamber of Commerce sponsored Christmas Walk
• Marketing through the Chamber of Commerce to provide a website, bimonthly
newsletter, annual business directory, and the VIP Card merchant discount
program
• Funding for seasonal decoration of the Dolphin topiaries at the intersection of
Marguerite and Coast Highway
3
Corona del Mar 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
• Various Administrative costs including mailings and D &O Insurance.
The estimated cost of providing the proposed improvements and activities to be
undertaken by the BID in the fiscal year 2011 -2012 is approximately $188,000.
The implementation of these actions is more fully described in the attached
Corona del Mar BID Priorities and Budget Outline for the fiscal year 2011 -2012.
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 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:
r
Kimberly Brandt, CP
Community Dev opment Director
Attachments: A. BID Boundary Map
B. 2010 -2011 Corona del Mar Annual Report and 2011 -2012 Priorities and Budget
C. Resolution of Intention to Levy 2011 -_
r'
IGVM- OT11 -TO TV
City r of Newport Beach
Corona del Mar
:business Improvement District
Business Inprovenent District Boundary
NO
Attachment "B"
CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2010 -2011 ANNUAL REPORT
This is the annual report for the fifteenth year of the Corona del Mar Business
Improvement District (BID), as required by Section 36533 of the California
Streets and Highways Code.
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 following are activities planned for the new fiscal year:
Lane Reduction
As part of the Corona del Mar (CdM) Vision Plan, the narrowing of Coast
Highway from three lanes to two will be moved to before Avocado Avenue
from its current location at Carnation Street, resulting in an additional area
at MacArthur and Coast Highway for greater pedestrian access. The BID
will engage an engineering form to develop plans, cost estimates, and
timelines to begin this project.
Street Furniture
Various additional locations for benches, bicycle racks, and bus stops will
be identified and furniture will be purchased and added as needed.
Tree Wells
The BID will have installed new, custom designed tree wells around the
unplanted bases of the King Palms and Hong Kong Orchids along Coast
Highway. An extended maintenance agreement with Park West
Landscape will assure the proper care and cultivation of these planted
areas.
Plaza Upkeep
According to the Memorandum of Understanding with the City of Newport
Beach, the BID is responsible for long -term maintenance of the facilities at
the Centennial Plaza at Coast Highway and Marguerite. The BID will
repair and replace various elements of the Plaza as needed.
Landscaping
The BID will continue to provide landscape maintenance for the unplanted
tree wells, the intersection of Marguerite and Coast Highway, and the
Centennial Plaza. The BID will also pay for the upkeep and repair of the
irrigation backflow valves that water the street trees.
I
Outreach
The BID will provide funds for holding the Annual Meeting, as well as
other public relations events of mailings as needed.
Holiday Decor
The BID will work with DekraLite to install the holiday decorations, lighting,
and banners as it has in the past years
Banner Program
The BID will continue the rotating banner program to highlight the CdM
5K, the Coastline Classic Car Show, and the Christmas Walk.
Christmas Walk
The BID will contribute funds to the CdM Chamber to sponsor the
Christmas Walk.
Marketing through CdM Chamber
The BID will continue to contract with the Corona del Mar Chamber of
Commerce to provide a website, bimonthly newsletter, an annual
business directory and the continuation of the CdM VIP merchant discount
program.
Administrative Costs
The BID will continue to provide Errors and Omissions Insurance to
protect the volunteer Advisory Board. It also will pay for any ancillary
mailings or inserts into billing.
Dolphins
The BID will continue to pay for the seasonal decoration of the Dolphin
topiary at the intersection of Marguerite and Coast Highway
3) The cost of these activities are projected as follows:
Lane Reduction
$76,000
Street Furniture
$5,000
Landscaping
$17,200
Plaza Upkeep
$5,000
Outreach
$3,500
Holiday Decor
$22,000
Banner Program
$8,400
Christmas Walk
$3,000
Marketing through CdM Chamber
$45,516
Administrative Costs
$ 2,000
Dolphins
500
TOTAL
$188,116
2
0
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 of the assessment amount due. Individuals with more than one
business entity within the assessment boundaries shall only be required to
pay the BID assessment for the largest business, shall be exempt from
assessments on additional businesses within the BID, 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 2010 -2011
It is estimated that approximately $60,000 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.
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:
• Designed and installed tree well plantings for 180 tree wells throughout
the Village along Coast Highway
• Committed funds to the City to offset the cost of way finding signs
throughout the City
• Continued the CdM VIP Card program promoting CdM businesses
primarily to local residents
3
9
• 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
• Continued the 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
10
Corona del Mar
Business Improvement District
Priorities and Budget Outline
July 1, 2011 — June 30, 2012
Funds Available FY End 2010 — 2011 $60,000
Funds to be Collected FY 2011 -2012
$91,000
Anticipated Matching Funds from City $38,000
Total Available Funds $189,000
Priorities Amount
Lane Reduction
$76,000
Street Furniture
$ 5,000
Landscaping
$17,200
Plaza Upkeep
$ 5,000
Outreach
$ 3,500
Holiday Decor
$22,000
Banner Program
$ 8,400
Christmas Walk
$ 3,000
Marketing through CdM Chamber
$45,516
Administrative Costs
$ 2,000
Dolphins
$ 500
TOTAL EXPENDITURES $188,116
s
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 CORONA DEL
MAR 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 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
WHEREAS, on June 14, 2011, 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 (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. 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:
Resolution No. 11 --
Corona del Mar Business Improvement District
13
PAP
1. Hair stylists
2. Nail technicians
3. Real estate agents
D. The assessment for all other businesses within the BID 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 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
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.
Section 6: The location of the BID 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 28, 2011 at 7:00 p.m., or
as soon thereafter as this matter may be heard, in the Council Chambers located
Resolution No. 11 -_
Corona del Mar Business Improvement District
-14
3
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.
ATTEST:
Leilani Brown, City Clerk
ATTACHMENT: Exhibit A (Boundary Map)
Michael F. Henn, Mayor
Resolution No. 11 --
Corona del Mar Business Improvement District
-f5
10
City r of Newport Beach
Corona del Mar
:business Improvement District
Business Inprovenent District Boundary
EXHIBIT A
12