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HomeMy WebLinkAbout15 - Balboa Village Business Improvement DistrictN CITY OF ca. �9[,FOPNP City Council Staff Report Agenda Item No. 15 June 26, 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 APPROVED: V TITLE: Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District for Fiscal Year 2012 -2013 ABSTRACT: The annual renewal of the Balboa Village Business Improvement District (Balboa Village BID) requires a public hearing to determine if there is a majority protest against the levied assessments or a specific improvement, activity or benefit proposed by the BID for Fiscal Year 2012 -2013. RECOMMENDATIONS: 1. Hold a public hearing regarding the renewal of the Balboa Village Business Improvement District. 2. If protests represent less than 50 percent of the total assessment amount, adopt Resolution No. 2012 - 49 confirming the levy assessment for the Balboa Village Business Improvement District for Fiscal Year 2012 -2013. or If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the Balboa Village Business Improvement District. or 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. 2012 - 49: Renewal of the Balboa Village Business Improvement District for Fiscal Year 2012 -2013 June 26, 2012 Page 2 3. Appoint the following tc Advisory Board: Craig Batley Ralph Rodheim Rita Stenlund Patrick Moore Mike Thompson FUNDING REQUIREMENTS: the Balboa Village Business Improvement District Burr White / Balboa Realty Balboa Boat Rentals ExplorOcean Fun Zone Rides Davey's Locker The City of Newport Beach, or its approved designee, collects the member assessments on behalf of the Balboa Village BID and remits the monies back to the BID for funding the activities listed in its annual report to the Council. In addition to the assessments, the City's adopted FY 2012 -2013 budget includes sufficient funding for providing $14,000 in matching funds to the BID. DISCUSSION: The Balboa Village 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 within the area. In accordance with the 1989 Law, a public hearing must be held each year prior to renewal of a Business Improvement District. 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. If protests represent less than 50 percent of the total assessment, the City Council may renew the BID. During its June 12, 2012 regular meeting, the City Council approved the Balboa Village BID Fiscal Year 2011 -2012 Annual Report, adopted a Resolution of Intention to levy and collect assessments for the BID for the 2012 -2013 fiscal year, and set a public hearing for the BID renewal to take place on June 26, 2012. (Attachment A). In compliance with the 1989 Law, a public notice of the Resolution of Intention to levy and collect assessments for the renewal of the Balboa Village BID, and the time and place of the public hearing, was published in the Daily Pilot newspaper on Saturday, June 16, 2012. It was also posted on the City's website (www.newportbeachca.gov). 11 Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District for Fiscal Year 2012 -2013 June 26, 2012 Page 3 As of the time this report was published by the City Clerk, no letters of opposition to the BID renewal had been received by the City. Any subsequent correspondence, with a tabulation of the protests, will be provided to the City Council at its June 26 meeting. Therefore, City staff is recommending adoption of Resolution 2012 - 49, a Resolution Confirming the Levying of Assessments for Fiscal Year 2012 -2013 for the Balboa Village Business Improvement District. (Attachment B). The City Council has the authority to appoint an advisory board to the BID. The City may limit membership on the advisory board to persons that are subject to the BID assessment. The board is different and distinct from other advisory bodies within the City and is not appointed in the same manner. The City relies upon the Streets and Highways Code for BID board appointments rather than Council Policy A -2. Staff is recommending the appointment of the following to the Balboa Village BID advisory board: Craig Batley Ralph Rodheim Rita Stenlund Patrick Moore Mike Thompson. 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 Yaa'_� Tara Finnigan Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District for Fiscal Year 2012 -2013 June 26, 2012 Page 4 Attachments: A. June 12, 2012 City Council Staff Report B. Resolution 2012 - 49, Confirming the Levy of Assessments • Attachment A Agenda Item No. 9 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 APPROVED: TITLE: Resolution of Intention to Renew the Balboa Village Business Improvement District and Levy Assessments in FY 2012 - 2013 ABSTRACT: The Balboa Village Business Improvement District (Balboa Village 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 Balboa Village Business Improvement District FY 2011 - 2012 Annual Report. 2. Adopt Resolution 2012 - 41, a Resolution of Intention to renew the Balboa Village 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 Balboa Village 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 $14,000 in matching funds to the BID. DISCUSSION: The Balboa Village Business Improvement District (BID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets J Resolution of Intention to Renew the Balboa Village Business Improvement District and Levy Assessments in FY 2012 - 2013 June 12, 2012 Page 2 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 Balboa Village BID territory encompasses the area between A Street and Coronado Street on Balboa Peninsula. (Boundary Map is attached to the Resolution as Exhibit A.) The Balboa Village 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 Balboa Village 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 - 41, a Resolution of Intention to renew the Balboa Village Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2012 - 2013 and setting the public hearing date for renewing the Balboa Village 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 ( "CEQK) 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). Resolution of Intention to Renew the Balboa Village Business Improvement District and Levy Assessments in FY 2012 - 2013 June 12, 2012 Page 3 Submitted by: Tara Finnigan Attachments: A. FY 2011- 2012 Balboa Village BID Annual Report & FY 2012 -2013 Priorities and Budget B. Resolution of Intention 2012 - 41 I BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2011 -2012 ANNUAL REPORT This is the annual report for the sixteenth 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.) Improvements and Activities Planned for the Fiscal Year of July 1, 2012 to June 30, 2013 The following are activities planned for the new fiscal year: W ebsite The BID is looking to completely redesign its existing website and to start a comprehensive, web -based marketing program. It is looking to establish a more reliable content generation system as well as looking at such items as quick response codes and other interactive technology links to the site. Holiday Events and Decorations The BID hangs bows and wreaths during the period between Thanksgiving and Christmas, and has begun a tradition of a community holiday tree lighting, horse drawn wagon rides and merchant window - decorating by the children of Newport Elementary School. Special Events A third annual Lexus Newport to Ensenada Yacht Race Kickoff event, in conjunction with ExplorOcean / Newport Harbor Nautical Museum, NOSA and Visit Newport Beach, is scheduled in April. Parking Lot Up rg ades The BID will continue reimbursing the City for excess costs for building an entrance sign and up lighting in the Palm parking lot. This is budgeted to be $15,000, paid over 10 years. This will be the second year the BID has paid for the lighting. The BID wants to work with the City to establish a parking management district and receive a fair share of parking revenue to be used to enhance the village. Advertising Print advertising will be tied to response mechanisms on the website, and a campaign of using print media to advertise special events will be implemented in conjunction with the special events coordination. Banner Program The BID 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. Annual Meeting An annual meeting will be scheduled in late April and the BID will provide refreshments. Administrative Costs Bank service charges are anticipated. 3.) The Cost of These Activities Is Projected as Follows: W ebsite $4,140 Parking Lot Upgrades $1,500 Holiday Decorations $5,600 Special Events $10,000 Annual Meeting $ 500 Advertising $6,000 Banner Program $3,000 Administrative Costs $1,400 TOTAL $32,140 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 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 KJ 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 approximately $1,200 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 $14,000 contributed to the BID from the City of Newport Beach. 7.) Past Year Accomplishments The Fiscal Year of 201 1 -2012 was a successful one for the District. The BID instituted and completed the following projects: • Continued holiday d €cor program, including a community holiday tree and storefront painting by Newport Elementary School students. Hayride and music programs were also included. • Distribution of promotional brochures to local /regional hotels. • Maintained the website. • Hung banners along Balboa Boulevard during the summer season. • Advertised in various print publications and brochure distribution. • Sponsored a celebration in collaboration with ExplorOcean / Newport Harbor Nautical Museum, NOSA, and Visit Newport Beach the weekend before the start of the Newport to Ensenada Race. Fiscal Year 2011- 2012 District 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 2012 -2013 fiscal year budget. The merchants of Balboa Village want to thank the City Council for their financial support and efforts on behalf of the BID. it /0 Balboa Village Business Improvement District Priorities and Budget Outline July 1, 2012 — June 30, 2013 Income Amount Funds Available FISCAL FY End 2011 — 2012 $ 1,200 Funds to be Collected FY 2012 -2013 $17,000 Anticipated Matching Funds from City $14,000 Total Available Funds $32,200 Priorities Amount Website $4,140 Parking Lot Upgrades $1,500 Holiday Decorations $5,600 Special Events $10,000 Annual Meeting $ 500 Advertising $6,000 Banner Program $3,000 Administrative Costs $1,400 TOTAL EXPENDITURES $32,140 4 RESOLUTION NO. 2012 -41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE BALBOA VILLAGE 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 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 "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 Balboa Village Business Improvement 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 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 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 - 41 Balboa Village 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 100 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 Balboa Village 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: Between A Street and Coronado Street on the Balboa Peninsula, as set forth with greater specificity in the map attached as Exhibit A. Resolution No. 2012 - 41 Balboa Village Business Improvement District 13 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 - 41 Balboa Village Business Improvement District / Vol'/ <fp\ aooi ILOL -rep, i oaf BpOf a G� B W 0 pe pp! CaO Oe oL B•n ° , / m i 1 dl / Pro \��`�O ,•m., � '� / /. / P g ♦ CL` g / i� �3fp ` \IBO 1 /Si �4 mil �' -: ep <\�°F•' 0`r< 1S,�� o° !Jj / /f/ / .'-1 F /, ^PF/ Jp'� Oaf nk• o1�1NSbM P , Cd E[C•alD W� 1d`S 'ti \�Bp;. .] 3ie���l� \BiD � % / LQ. %'Ieal CD 9LC 1S pONbNb L :. rt. ae`yc" 8q tqs J% �L Apr _� rte• ' �B �r / v e 1 212. ag ` Be• O0 -b"'o 01t 9:r eK LL m oz 8� ay ro^ ft 1 LO m, SOt H�ya .slit 2lt � ns\ �'if Eq 0Lt � V m ,�: :Ept es�• � J m .k i' 1,5 Attachment B RESOLUTION NO. 2012- 49 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2012 TO JUNE 30, 2013 FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT WHEREAS, on June 12, 2012 the Balboa Village Business Improvement District annual report was filed and approved by the City Council; WHEREAS, on June 12, 2012 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the Balboa Village Business Improvement District for fiscal year July 1, 2012 to June 30, 2013; and WHEREAS, a public hearing regarding the renewal of the Balboa Village Business Improvement District was held on June 26, 2012 without a majority protest. NOW, THEREFORE, the City Council of the City of Newport Beach hereby confirms the levy of assessments as described in the Resolution of Intention, dated June 12, 2012, for the Balboa Village Business Improvement District for the fiscal year July 1, 2012 to June 30, 2013. 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 26th day of June 2012. ATTEST: Leilani Brown, City Clerk Nancy Gardner, Mayor Resolution No. 2012 - 49 Balboa Village Business Improvement District 13