Loading...
HomeMy WebLinkAbout06 - Restaurant Association Business Improvement DistrictCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 November 12, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel Trimble, Program Administrator 949/644 -3230. dtrimble @city.newport- beach.ca.us SUBJECT: Restaurant Association Business Improvement District Renewal: Annual Report for Fiscal Year 2003, and Adoption of Resolution of Intention to Levy for Fiscal Year 2004. ISSUE: Annual renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Approve Restaurant Association Business Improvement District 2003 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for December 9, 2003. DISCUSSION: Background: The Restaurant Association Business Improvement District (BID) is nearing the end of its eighth year of operation and requests renewal of the District for the fiscal year of 2004. This report summarizes the District's accomplishments during 2003, its eighth year of operation, 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 December 9, 2003. 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 2003 and proposed activities for 2004 are provided below. The District's 2004 activities are proposed to remain the same as in 2003. Restaurant Association BID Renewal Hearing 1 November 12, 2003 Page 2 Eighth Year District Accomplishments: The merchants of Restaurant Association have found their eighth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts to create and execute FY 2003 NBRA Marketing Plan of Work & Budget • Re- produced NBRA Dining Guide and produced 100,000 copies • Distributed NBRA Dining Guides through the following outlets: Certified Folder Display, Western Brochure Distributors, Conference & Visitors Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment. • Developed NBRA custom dining guide brochure holder display program in NBRA Restaurants. • Maintained NBRA Website: www.newPortbeachdininq.com (with upwards of 115,000 hits per month) • Maintained Toll free Dining Reservation System for all NBRA restaurants with an average of (600) calls per month and (50) direct connections to various NBRA restaurants. • Developed NBRA identity and supported mission which states that the "NBRA is a non - partisan non - profit marketing association that promotes commercial welfare of restaurants and the restaurant industry in the city of Newport Beach. Profile: The NBRA is an official "Business Improvement District" of the city of Newport Beach. It was established to promote Newport Beach as Southern Califomia's premier dining destination. Comprised of over 300 individual members, the association works to cooperatively market the multitude of outstanding choices available in Newport Beach, CA." • Developed NBRA marketing collateral (NBRA dining guides, newsletters, membership informational brochures, decals) • Reproduced NBRA Membership Informational Brochure & Decal for members • Redesigned NBRA newsletter and distributed to members • Implemented local media campaign to promote website, dining guide and phone reservation system • Mailed NBRA newsletters from the Board of Directors to all members. • Developed and updated a comprehensive member listing and database • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association 2 Restaurant Association BID Renewal Hearing 1 November 12, 2003 Page 3 • Secured a $3,000 sponsorship contribution from the California Restaurant Association to support NBRA programs • Secured a media partnership with OC Metro and Churm Publishing to promote NBRA (In -kind added value: $20,000) • Placed advertisements in the NBCVB & AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide, The Local Concierge, • Placed full panel advertisements in the NB Chamber map and the Anaheim Official Dining Guide. • Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs • Secured a NBRA Coop sponsorship panel display and referral program at the California Visitor Center to promote NBRA • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA • Cosponsored the NBCVB Visitor Information Center at the Newport Pier • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public. • Sponsored the Newport Beach Film Festival & organized restaurant participation • Promoted participation in the Irrelevant Week Kickoff Party • Implemented charitable sponsorship of the Donate -A -Dish Program on behalf of FOCUS • Sponsored reduced cost Serve Safe and ABC seminars • On -going support of the Green Restaurant Association • Hosted NBRA annual luncheon membership networking meeting Fiscal Year District Revenues: During 2003 the district collected approximately $44,409 in member assessments and $32,464 in matching funds from the City. The District spent approximately $63,060 for approved activities. It is anticipated that a remaining balance of approximately $50,000 will be carried over into the 2004 fiscal year budget. Proposed Activities and Budget: The activities proposed for the next year include marketing, advertising, and public relations to benefit Restaurant Association businesses. The estimated budget for these activities is approximately $114,000. 91 Restaurant Association BID Renewal Hearing 1 November 12, 2003 Page 4 The Restaurant Association Business Improvement District appreciates the City Council's continued support. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: None Required Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: DANIEL—R. TRIMBLE C & ED Program Administrator Submitted by: I - i i; With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A — FY 2003 Annual Report and 2004 Priorities & Budget Outline Exhibit B — Resolution of Intention to Levy 2003- REPORT TO THE MAYOR AND CITY COUNCIL RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2003 YEAR Overview This is the annual report for the Restaurant Association Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for calendar year 2003. Boundaries The boundaries of the benefits zone remain unchanged: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Proposed Activities The improvements and activities to be provided for the year include: 1. Implementation of new FY 2004 Comprehensive Marketing Plan of Work & Budget 2. Marketing and Advertising campaigns to promote NBRA programs 3. Restaurant Association BID Member and Community Outreach 4. Active Membership in the Newport Beach and Anaheim Conference and Visitor's Bureau, Newport Harbor Area Chamber of Commerce, California and National Restaurant Associations. Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $114,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2004 year. Assessments Assessments shall be collected in one annual installment at the beginning of the 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 $50.00. For establishments with greater than ten (10) employees, 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. The penalty for delinquent payments will be twenty -five percent per month, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. Account Status The District's current account balance is approximately $63,966 at the end of the first ten months of the year. It is anticipated the balance will be approximately $50,000 or less at the year -end, December 31, 2003, and will be carved over to the next fiscal year. Matching funds, if approved by the City Council for year 2004, will be added to the amount designated for marketing activities. The Advisory Board of the Restaurant Association Business Improvement District may raise additional funds through various events and fund- raisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2004 fiscal year budget. Prior Year Accomplishments The merchants of Restaurant Association have found their eight year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts to create and execute FY 2003 NBRA Marketing Plan of Work & Budget • Re- produced NBRA Dining Guide and produced 100,000 copies • Distributed NBRA Dining Guides through the following outlets: Certified Folder Display, Western Brochure Distributors, Conference & Visitors Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment. • Developed NBRA custom dining guide brochure holder display program in NBRA Restaurants. • Maintained NBRA Website: www.nemTortbeachdining.com (with upwards of 115,000 hits per month) • Maintained Toll free Dining Reservation average of (600) calls per month and restaurants. System for all NBRA restaurants with an (50) direct connections to various NBRA • Developed NBRA identity and supported mission which states that the "NBRA is a non- partisan non - profit marketing association that promotes commercial welfare of restaurants and the restaurant industry in the city of Newport Beach. Profile: The NBRA is an official "Business Improvement District" of the city of Newport Beach. It was established to promote Newport Beach as Southern California's premier dining destination. Comprised of over 300 individual members, the association works to cooperatively market the multitude of outstanding choices available in Newport Beach, CA." • Developed NBRA marketing collateral (NBRA dining guides, newsletters, membership informational brochures, decals) • Reproduced NBRA Membership Informational Brochure & Decal for members • Redesigned NBRA newsletter and distributed to members • Implemented local media campaign to promote website, dining guide and phone reservation system • Mailed NBRA newsletters from the Board of Directors to all members. • Developed and updated a comprehensive member listing and database L Page 2 • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association • Secured a $3,000 sponsorship contribution from the California Restaurant Association to support NBRA programs • Secured a media partnership with OC Metro and Churm Publishing to promote NBRA (In -kind added value: $20,000) • Placed advertisements in the NBCVB & AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide, The Local Concierge, • Placed full panel advertisements in the NB Chamber map and the Anaheim Official Dining Guide. • Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs • Secured a NBRA Coop sponsorship panel display and referral program at the California Visitor Center to promote NBRA • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA • Co- sponsored the NBCVB Visitor Information Center at the Newport Pier • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public. • Sponsored the Newport Beach Film Festival & organized restaurant participation • Promoted participation in the Irrelevant Week Kickoff Party • Implemented charitable sponsorship of the Donate -A -Dish Program on behalf of FOCUS • Sponsored reduced cost Serve Safe and ABC seminars • On -going support of the Green Restaurant Association • Hosted NBRA annual luncheon membership networking meeting The merchants of Restaurant Association have worked hard to promote their member restaurants and the dining experience in Newport Beach as a whole. They wish to express their appreciation for the City Council's continued support of the Restaurant Association Business Improvement District, especially the $32,000 of matching funds provided by the City. q Page 3 Restaurant Association Business Improvement District Priorities and Budget Outline January 1, 2004 -December 31, 2004 Funds Available FY End 2003 Funds to be collected January 2004 Anticipated Matching Funds from City Total Available Funds Proposed FY 2004 Budget: Priorities Percent of Budget 1. Marketing Plan Administration 22% $50,000 $52,000 $32,000 $134,000 $114,000 Budget Amount $25,500 Implement the current Marketing Plan Identify and present new marketing opportunities to the Board Supervise creative, production, printing and other Marketing Plan efforts 2. Media Advertising Buys 30% $33,750 • Expanded Print Media Campaign: Tourism Market: CA State, Anaheim Visitor Guides and Newport Beach Visitor Guide Local Market: Daily Pilot, OC Register, OC Metro, and Coast Magazine • Direct Mail Campaign to Local Residents • Various Magazine Drops in Targeted Markets 3. Marketing Collateral Development 28% • Dining Guide Production & Reprint $31,820 • Dining Guide Distribution: Certified Folder Display, Western Brochure 4. Communications 14% $15,900 • Maintain Toll -Free Dining Reservation System • Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Memberships 2% $2,000 • Anaheim Visitors & Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau 6. Special Events 4% $5,000 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships Y Page 4 EXHIBIT B RESOLUTION NO. 2003- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF 2004, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the 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 Fiscal Year 2003 which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2004, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the 2004 pursuant to the Act. Section 3: The location of the District will remain the same: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Section 4: The City Council intends to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: R A. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. B. For establishments with greater than ten (10) employees, 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. C. The assessment for all other businesses within the District shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. 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 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 7: 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 9, 2003 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 Resolution No. 2003 - Restaurant Association Business Improvement District ID will hear all interested persons for or against the establishment 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 that 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 within the District, those types of improvements or activities shall be eliminated. Further information regarding the proposed Business Improvement District renewal may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658. Telephone (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 and thereon held on the day of 2003. ATTEST: CITY CLERK MAYOR Resolution No. 2003 - Restaurant Association Business Improvement District