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HomeMy WebLinkAbout10 - Corona del Mar Business Improvement DistrictSEW PpR� CITY OF as NEWPORT BEACH �q��oP City Council Staff Report Agenda Item No. 10 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 I_1 »:191TAA1 1 TITLE: Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2012 - 2013 ABSTRACT: The Corona del Mar Business Improvement District (Corona del Mar 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 Corona del Mar Business Improvement District FY 2011 - 2012 Annual Report. 2. Adopt Resolution 2012 - 42, a Resolution of Intention to renew the Corona del Mar 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 Corona del Mar 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 $38,000 in matching funds to the BID. Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2012 - 2013 June 12, 2012 Page 2 DISCUSSION: The Corona del Mar 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 Corona del Mar BID territory encompasses the area generally located on East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. (Boundary Map is attached to the Resolution as Exhibit A.) The Corona del Mar 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 Corona del Mar 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 - 42, a Resolution of Intention to renew the Corona del Mar Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2012 - 2013 and setting the public hearing date for renewing the Corona del Mar 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 Corona del Mar 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: 4a- J am: Tara Finnigan Attachments: A. FY 2011- 2012 Corona del Mar BID Annual Report & FY 2012 -2013 Priorities and Budget B. Resolution of Intention 2012 - 42 CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2011 -2012 ANNUAL REPORT This is the annual report for the sixteenth year of the Corona del Mar 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 1, 2012 to June 30, 2013 The following activities are planned for the new fiscal year: Lane Reduction As part of the 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 seeks to cost share with the City for a demonstration project to research actual traffic benefits from the lane reduction using striping and cones. Marguerite Protect The Board seeks to develop various improvements in landscaping, streetscape, and other items to continue creating a sense of identity for the village at the intersection of Marguerite and Coast Highway. Parking Project Parking in the village needs to be addressed further, especially in light of recent studies done by consultants and to address concerns of both business owners and residents alike. A program of research and education needs to be developed to focus the parking issue and develop an outreach effort to all parties concerned about the preconceptions and realities of parking. 2020 Vision Plan The Board continues to reevaluate and revise the 2020 Vision Plan. Subcommittee meetings to develop new objectives will continue to be held. Efforts will continue to inform business and residential communities of the findings of the board. Tree Wells The BID will continue the extended maintenance agreement with Park West Landscape to assure the proper care and cultivation of tree well 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 District will also pay for the upkeep and repair of the irrigation backflow valves that water the street trees. Outreach The BID will provide funds for holding the Annual Meeting, as well as other public relations events and for 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 At this point, an existing contract with the Corona del Mar Chamber of Commerce for marketing efforts may be extended, or a new marketing provider may be selected to either renew existing programs or develop new ones. Administrative Costs The BID will continue to pay bank service fees as well as pay for any ancillary mailings or inserts into billing. 2 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 is Projected as Follows: Lane Reduction $15,000.00 Marguerite Project $15,000.00 Parking Project $ 8,200.00 Landscaping $19,200.00 Plaza Upkeep $ 500.00 Outreach $3,500.00 Holiday Decor $24,000.00 Banner Program $ 8,400.00 Christmas Walk $ 3,000.00 Marketing $46,098.00 Administrative Costs $ 600.00 Dolphins $ 500.00 TOTAL $143,998.00 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 Newport Beach 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 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 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 3 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 $15,000 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 $38,000 contributed to the BID from the City of Newport Beach. 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: • Designed and installed tree well plantings for 180 tree wells throughout the Village along Coast Highway. • In cooperation with the City, paid for a design study and public outreach campaign to engineer and landscape the "squeeze lane" at MacArthur and Coast Highway, resulting in a conceptual plan approved by the City Council and ready for detailed traffic engineering studies. • Wrapped up the CdM VIP Card program promoting CdM businesses primarily to local 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 CdM- specific events. • Continued design progress on various items called for in the CdM Vision Plan. • Supported CdM Chamber of Commerce events. • Co- produced the CdM Chamber of Commerce business directory. • Reevaluated and revised the 2004 Vision Plan to the 2020 Vision Plan. Community input was solicited at the Christmas Walk and several meetings were held by a board subcommittee to develop new objectives. Printed explanatory materials were prepared to present the concepts to the business and residential communities to help inform and build consensus. Fiscal Year District Revenues During the 2011 -2012 fiscal year, the BID collected approximately $97,800 in assessments from members. Its account balance as of the beginning of the year was $73,516. The BID received $38,000 in matching funds from the City. The 4 BID has spent approximately $143,767 for approved activities, and anticipates spending an additional $50,000 by fiscal year end. The District's current account balance is approximately $65,780 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $15,000 or less at the fiscal year end, June 30, 2012. Revenue from members in the FY 2012 — 2013 period is projected to be $91,000, with City matching revenues projected to be $38,000. $143,998 has been allocated for projected expenses with an anticipated $2 remaining at the end of the 2012 -2013 Fiscal Year. The merchants of the Corona del Mar BID want to thank the City Council for their financial support and efforts on behalf of the BID. E Corona del Mar Business Improvement District Priorities and Budget Outline July 1, 2012 — June 30, 2013 Income Amount Funds Available FY End 2011— 2012 $15,000 Funds to be Collected FY 2012 -2013 $91,000 Anticipated Matching Funds from City $38,000 Total Available Funds $144,000 Priorities Amount Lane Reduction $15,000 Marguerite Project $15,000 Parking Project $ 8,200 Landscaping $19,200 Plaza Upkeep $ 500 Outreach $ 3,500 Holiday Decor $24,000 Banner Program $ 8,400 Christmas Walk $ 3,000 Marketing $46,098 Administrative Costs $ 600 Dolphins $ 500 TOTAL EXPENDITURES $143,998 6 IN*is]11,111j9 Is] ►10[91W111] KE, PA A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR 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 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 "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 Corona del Mar Business Improvement District Board, 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 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 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. Resolution No. 2012 - 42 Corona del Mar Business Improvement District 2 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 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach 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 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 Corona del Mar 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 located on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A. Resolution No. 2012 - 42 Corona del Mar Business Improvement District 3 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 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. ATTEST: Leilani Brown, City Clerk Attachment: Exhibit A (Boundary Map) Nancy Gardner, Mayor Resolution No. 2012 - 42 Corona del Mar Business Improvement District Corona del Mar Business Improvement District is Pik: A J. 1 -41 N MW N E S 0 500 1,000 Name: BID C et Low 0imleyiyllrell- STATE :001 :1 1111 OF CALIFORNIA) ) SS. COUNTY OF ORANGE ) I am a citizen of the United States and a resident of the County of Los Angeles; I am over the age of eighteen years, and not a party to or interested in the notice published. I am a principal clerk of the NEWPORT BEACH/COSTA MESA DAILY PILOT, which was adjudged a newspaper of general circulation on September 29, 1961, case A6214, and June 11, 1963, case A24831, for the City of Costa Mesa, County of Orange, and the State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Saturday,,June 16, 2012 I certify (or declare) under penalty of perjury that the foregoing is true and correct. Executed on June 22, 2012 at Los Angeles, California Signature '` JI j j ; -6 ZIV RESOWTION NO. 201242 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTEN- TION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESS- MENTS FOR THE FISCAL YEAR OF JULY 1, 2012 TO JUNE 30, 2013, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Corona del Mar Business Im- provement District was established in 1996 pursu- ant 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 Corona del Mar Business Improvement District Board, 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 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 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: 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 Newport Beach 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 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 S: 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 Im- provement 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 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 26, 2012 at 7 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 3300 Newport Boule- vard, Newport Beach, California at which time the Council wjll 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 owner- ship 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 j activity or benefit within the BID, those types of i 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. /s/ Nancy Gardner, Mayor 1 ATTEST: /s/ Leilani Brown, City Clerk Exhibit A (Boundary Map) can be viewed at the City Clerk's Office at 3300 Newport Boulevard, Newport Beach, CA 92663. Published Newport Beach/Costa Mesa Daily Pilotl lune 16 7019