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HomeMy WebLinkAbout08 - Marine Avenue Business Improvement DistrictSEW p w CITY OF as NEWPORT BEACH �q��oP City Council Staff Report Agenda Item No. 6 June 12, 2012 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager A K.t APPROVED: 9 TITLE: Resolution of Intention to Renew the Marine Avenue Business Improvement District and Levy Assessments in FY 2012 - 2013 ABSTRACT: The Marine Avenue Business Improvement District (Marine Avenue BID) Board of Directors has submitted the BID's FY 2011 - 2012 Annual Report for Council approval and requested renewal of the BID for FY 2012 - 2013. RECOMMENDATIONS: 1. Approve the Marine Avenue Business Improvement District FY 2011 - 2012 Annual Report. 2. Adopt Resolution 2012 - 40, a Resolution of Intention to renew the Marine Avenue Business Improvement District and levy assessments in Fiscal Year 2012 - 2013 and set the public hearing date for June 26, 2012. FUNDING REQUIREMENTS: The City of Newport Beach, or its approved designee, collects the member assessments on behalf of the Marine Avenue BID and remits the monies back to the BID for funding the activities described in the attached annual report. In addition to the assessments, the City's proposed FY 2012 - 2013 budget includes sufficient funding for providing $10,000 in matching funds to the BID. Resolution of Intention to Renew the Marine Avenue Business Improvement District and Levy Assessments in FY 2012 - 2013 June 12, 2012 Page 2 DISCUSSION: The Marine Avenue Business Improvement District (BID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500 et seq., for the purpose of financing activities and programs to benefit businesses located and operating in the area. The Marine Avenue BID territory encompasses the 200 and 300 blocks of Marine Avenue on Balboa Island. (Boundary Map is attached to the Resolution as Exhibit A.) The Marine Avenue BID is nearing the end of its FY 2011 - 2012 and the Board of Directors has requested renewal of the BID for FY 2012 - 2013. Pursuant to the 1989 Law, an annual report must be prepared and a public hearing must be held prior to the BID's renewal. The Marine Avenue BID Board of Directors, which serves in an advisory capacity to the City Council, has prepared and submitted the attached annual report (Attachment A) for the Council's review and approval. The report includes a summary of the BID's FY 2011 — 2012 accomplishments and revenues as well as its proposed activities and budget for the new fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments. Therefore, City staff is recommending adoption of Resolution 2012 - 40, a Resolution of Intention to renew the Marine Avenue Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2012 - 2013 and setting the public hearing date for renewing the Marine Avenue BID for June 26, 2012. Staff also wishes to acknowledge Clinton Scott Palmer of BID Systems for his work in preparing the annual report and assistance in bringing this item forward for Council review. 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. Resolution of Intention to Renew the Marine Avenue Business Improvement District and Levy Assessments in FY 2012 - 2013 June 12, 2012 Page 3 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: Tara Finnigan Attachments: A. FY 2011- 2012 Marine Avenue BID Annual Report & FY 2012 -2013 Priorities and Budget B. Resolution of Intention 2012 -ao MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2011 -2012 ANNUAL REPORT This is the annual report for the sixteenth year of the Marine Avenue 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.) Improvements and Activities Planned for the Fiscal Year of July 1, 2012 through June 30, 2013 The following are activities planned for the new fiscal year: Improvement of Website The district has an established website, www.balboa- island.net, listing each of the merchants within the district and containing information relative to visiting the district and its environs. This website currently has the highest search engine hits for any Balboa Island web address, but the board feels it needs to be substantially improved. The Advisory Board has identified several improvements, including enhanced merchant listing, tracking and utilization of web visitors, an e- newsletter, and other web marketing strategies. Holiday Themed Decorations The District intends to wrap each of the light standards on the Avenue in artificial greenery and holiday lights during the period between Thanksgiving and Christmas. In addition, a previously successful program of distribution holiday lights to merchants will be continued. Concerts The District plans to continue the very popular, Fall Marine Avenue Concert. The concert is held on a section of Marine Avenue that is blocked off to traffic for an evening. Past concerts have generated attendance in the hundreds to hear name -brand bands. Merchants have reported record - setting sales after the events and residents have contacted the board to put on additional concerts. There is also a suggestion to close the street to autos during the Balboa Island parade. This event is partially paid from additional funds donated by individual sponsors from the BIDS. Memberships A membership in the Anaheim Visitor's and Convention Bureau will be continued. This membership affords the ability to advertise to over 600,000 tourists who contact the AVCB for information. Advertising An aggressive and comprehensive advertising program is planned for this fiscal year. Quarterly ads in tourist publications distributed in hotel rooms, ads in the Newport Beach Visitor's Guide and the Anaheim Visitor's Guide, folder distribution, and advertising in local publications will give a good blend of resident and tourist exposure. The BID will also advertise in a guide map that will be distributed throughout the city. Banner Program During the summer months and holiday seasons, the BID will fly custom -made Balboa Island flags or American flags from the light standards on Marine Avenue to create a sense of place and destination. Administration Bank service charges will be incurred, as will postage for various outreach efforts. 3.) The Cost of These Activities is Projected as Follows: Improvement of Website $ 6,500 Holiday Themed Decorations $ 1,000 Concerts $ 8,400 Memberships $ 900 Advertising $12,650 Banner Program $ 2,500 Administration $ 350 TOTAL $32,300 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 Newport Beach Municipal Code if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Newport Beach 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 Newport Beach Municipal Code. Banks and financial institutions that are exempt from City business 2 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 2011 -2012 It is estimated that approximately $2,000 will be carried over from Fiscal Year 2011 -2012 to Fiscal Year 2012 -2013. 6.) Sources of Contributions From Other Than Levy The BID estimates that there will be approximately $10,000 contributed to the BID from the City of Newport Beach. It is also estimated that an additional $3,600 will be raised in sponsorships for the concerts. 7.) Past Year Accomplishments The Fiscal Year of 2011 -2012 was a successful one for the District. The BID instituted and completed the following projects: • A very successful Halloween concert on Marine Avenue • Installation of holiday decor /lighting along Marine Avenue • Continuation of Balboa Island flag campaign • Maintained top visited Balboa Island sponsored website • Placement of advertising in tourist related publications • Participation with Visit Newport Beach and Anaheim/Orange County CVB. Fiscal Year 2011 -2012 District Revenues During Fiscal Year 2011 — 2012, the BID collected approximately $13,325 in member assessments. The BID collected $3,850 in cash sponsorships of the concert series. Its account balance at the beginning of the year was $6,676. The City provided $10,000 in matching funds. The BID has spent approximately $27,715 for approved activities and anticipates spending an additional $5,000 before renewal. It is anticipated that a remaining balance of approximately $2,000 will be carried over into the new 2012 -2013 fiscal year budget. The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. 3 Marine Avenue Business Improvement District Priorities and Budget Outline July 1, 2012 — June 30, 2013 Amount Funds Available FY End 2011 — 2012 $ 2,000.00 Funds to be Collected FY 2012 — 2013 $ 16,700.00 Anticipated Matching Funds from City $ 10,000.00 Concert Sponsorships $ 3,600.00 Total Available Funds $ 32,300.00 Priorities Amount Improvement of Website $ 6,500.00 Holiday Themed Decorations $ 1,000.00 Concerts $ 8,400.00 Memberships $ 900.00 Advertising $12,650.00 Banner Program $ 2,500.00 Administration $ 350.00 TOTAL EXPENDITURES $32,300.00 4 1:74:10 kit 9R]►104 [011 lfAEM A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2012 TO JUNE 30, 2013, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Marine Avenue 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 "1989 Law "), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board, known as the Marine Avenue Business Improvement District Board of Directors, has prepared an Annual Report for the 2011- 2012 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on June 12, 2012, the Marine Avenue 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 Marine Avenue Business Improvement District (BID) for fiscal year 2012 -2013 pursuant to the 1989 Law. Section 2: The City Council hereby declares the intention to levy assessments for the BID for the fiscal year July 1, 2012 to June 30, 2013 pursuant to the 1989 Law. 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. 2012 - 40 Marine Avenue Business Improvement District 2 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 Newport Beach Municipal Code if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. 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 Newport Beach 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. The assessment for new businesses shall be pro -rated according to the number of full months remaining in 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 Marine Avenue Business Improvement District Fiscal Year 2011 -2012 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 the 200 and 300 blocks of Marine 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 26, 2012 at 7 p.m., or as soon thereafter Resolution No. 2012 - 40 Marine Avenue Business Improvement District 3 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 the 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 may be obtained at the City Manager's Office, 3300 Newport Boulevard, Newport Beach, CA 92663; 949- 644 -3035. 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 12th day of June, 2012. 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