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HomeMy WebLinkAbout20 - Balboa Village BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 20 June 24, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP, Economic Development Coordinator kbowden(cD -city. newport- beach.ca. us SUBJECT: Balboa Village Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for Fiscal Year 2008 -2009. ISSUE: Annual renewal of the Balboa Village Business Improvement District. RECOMMENDATION: 1. Conduct the Public Hearing regarding the renewal of the Balboa Village Business Improvement District; and 2. Adopt Resolution for the renewal of the Balboa Village Business Improvement District confirming the levy of the BID assessment for the 2008 -2009 fiscal year, unless during the Public Hearing the Council receives protests representing 50 percent or more of the total assessment amount DISCUSSION: Background: On June 10, 2008 the City Council held a public meeting, approved the Balboa Village Business Improvement District 2007 -2008 Annual Report, and adopted a Resolution of Intention to levy and collect assessments for the District for the Fiscal Year of July 1, 2008 to June 30, 2009. Details regarding the proposed renewal of the District and annual report are provided in the attached June 10, 2008 staff report. A protest hearing must be held each year prior to renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of Balboa Village BID Renewal Hearing June 24, 2008 Page 2 the total assessment amount, the proceedings to renew the District must be discontinued for at least one year. If protests represent less than 50 percent of the total assessment, the City Council may renew the District. At the time this report was prepared, no letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests at the City Council meeting. Fiscal Year District Revenues During the fiscal year the BID received $14,977.25 in member assessments, and had a prior period holdover of $8,658. The City provided $9,765 in matching funds. The BID spent approximately $20,208 for approved activities and anticipates spending another $3,000 before renewal. It is anticipated that a remaining balance of approximately $10,000 will be carried over into the new 2008 -2009 fiscal year budget. Proposed Improvements. Activities and Budget The activities proposed for the new fiscal year include marketing, advertising, public relations, and public improvements and maintenance to benefit Balboa Village businesses. The estimated budget for these activities is approximately $32,440 for the fiscal year. PUBLIC NOTICE: Public notice of the protest hearing and the Resolution of Intention to levy and collect assessments for the renewal of the Balboa Village Business Improvement District has been published in the Daily Pilot in compliance with state law. Prepared by: Submitted by: THL N BO DEN SHARON Z. W06D Economic Development Coordinator Assistant City Manager With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Attachments: Resolution of Confirmation 2008 - June 10, 2008 Staff Report (recycled) ATTACHMENT A RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING. OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2008 TO JUNE 30, 2009 FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on June 10, 2008 the BALBOA VILLAGE Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on June 10, 2008 the City Council adopted and ordered to be published a Resolution of Intention declaring the intention to levy assessments for the BALBOA VILLAGE Business Improvement District for a fiscal year July 1, 2008 to June 30, 2009; and WHEREAS, a public hearing regarding the renewal of the BALBOA VILLAGE Business Improvement District was held on June 24, 2008 without a protest by the majority of the assessment. NOW, THEREFORE, the City Council of the City of Newport Beach hereby renews the BALBOA VILLAGE Business Improvement District for the fiscal year July 1, 2008 to June 30, 2009, and confirms the levy of assessments as described in the Resolution of Intention dated June 10, 2008 and published June 14, 2008. 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 24th day of June, 2008. MAYOR ATTEST: CITY CLERK �j CITY OF NEWPORT BEACH ON CITY COUNCIL STAFF REPORT Agenda Item No. 6 June 10, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP, Economic Development Coordinator kbowden(o)Gkv.newnort- beach.ca. us SUBJECT: Balboa Village Business Improvement District Renewal: Annual Report for Fiscal Year 2007 -2008 and Adoption of Resolution of Intention to Levy for Fiscal Year 2008 -2003. ISSUE: Should the City Council renew the Balboa Village Business Improvement District for its 13th year of operation, for the BID's fiscal year of July 1st, 2008 to June 30th, 2009? RE- CQARr1M1yNDATION: 1. Approve the Balboa Village Business Improvement District 2007 - 2008 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 24, 2008. DISCUSSM: Background: The Balboa Village BID was established April 1, 1996. The District includes the area between A Street and Coronado Street of the Balboa Peninsula as set forth with greater specificity in the map attached as Exhibit A. California law requires that an Annual Report summarizing the District's prior year accomplishments be prepared and that a public hearing be held each year prior to renewal of the District. 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 June 24, 2008. Balboa Village BID Renewal Hearing June 10, 2008 Page 2 The Balboa Village Business Improvement District (BID) is nearing the end of its 2007- 2008 year of operation and requests renewal of the BID for the fiscal year July 1, 2008 to June 30, 2009. A summary of accomplishments during fiscal year 2007 -2008 as well as the proposed activities and budget for the new fiscal period are provided below. Twelfth Year District Accomplishments The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past twelve months: • Advertised in the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitors and Convention Bureau's annual Visitors Guides. • Instituted a holiday decorations program that encouraged participation from local merchants. • Installed permanent decorative lighting along the trees on Balboa Boulevard. • Developed a new branding program for the Village identity and for use in preparing new promotional brochures for hotel distribution. • Prepared for a series of concerts in the park on Thursday Nights, bringing in local residents and tourists for promotional and cultural enrichment. • Provided clean up bags for residents walking their dogs. • Maintained membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitors and Convention Bureau. • Maintained the www. ba lboanewportbeach. con! website, providing seasonal information and announcements as well as an electronic merchant directory. • Paid for insurance coverage for the association. Fiscal Year District Revenues During the fiscal year the BID received $14,977.25 in member assessments, and had a prior period holdover of $8,658. The City provided $9,765 in matching funds. The BID spent approximately $20,208 for approved activities and anticipates spending another $3,000 before renewal. It is anticipated that a remaining balance of approximately $10,000 will be carried over into the new 2008 -2009 fiscal year budget. Proposed Improvements, Activities and Budget The activities proposed for the new fiscal year include marketing, advertising, public relations, and public improvements and maintenance to benefit Balboa Village businesses. The estimated budget for these activities is approximately $32,440 for the fiscal year. The Balboa Village BID appreciates the City Council's continued support. Balboa Village BID FUNDING AVAILABILITY: Renewal Hearing June 10, 2008 Page 3 Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: �. KATHLYN BOWDEN Economic Development Coordinator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: SHARON JA�4 A416:t:�' �' a4a'-, •O)EY Assistant City Ma6dger Attachments: Exhibit A — BID Boundary Map Exhibit B — FY 07 -08 Annual Report and FY 08 -09 Priorities & Budget Exhibit C — Resolution of Intention to Levy 2008 - KI / Pr Balboa Village EXHIBIT Business Improvement District / / Cy r / P Pacific Ocean 8 fsp,�� 9 alt va -Pi -r Newport Bay r� l l / / P - 0 100 200 300 Feet 1, Balboa Business Improvement ® / / District Boundary J if CI ffil EXHIBIT B BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT 2007 - 20008 ANNUAL REPORT This is the annual report for the twelfth year of the Balboa Village Business Improvement District (BID), as required by Section 36533 of the California Streets and Highways Code. This report covers the BID's accomplishments for the fiscal year (July 1st, 2007 to June 30, 2008) and the proposed activities and budget for the 2008 — 2009 fiscal year. The boundaries of the benefit zone will remain the same as fiscal year 2007 - 2008 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Among the Balboa Village BID accomplishments during fiscal year 2007 -2008 are the following: *Advertised in the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention Bureau's annual Visitor's Guides. * Instituted a holiday decorations program that encouraged participation from local merchants. *Installed permanent decorative lighting along the trees on Balboa Boulevard. * Developed a new branding program for the Village identity and for use in preparing new promotional brochures for hotel distribution. *Prepared for a series of concerts in the park on Thursday Nights, bringing in local residents and tourists for promotional and cultural enrichment. * Provided clean up bags for residents walking their dogs. * Maintained membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention Bureau. * Maintained the www.balboanewr)ortbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. * Paid for insurance coverage for the association. The improvements and activities to be provided for the coming Fiscal Year of July 2008 to June 2009 year include: 1. Marketing, advertising and public relations. 2. Brochure development and area identity rebranding 3. Promotion of public events that are to take place on or in any public places in area. 4. Decoration of any public place in the area. 5. Public area improvements and maintenance activities, including replacing trees on Main Street. 6. The general promotion of retail trade activities. 7. BID liability insurance S The estimated cost of providing the proposed improvements and the activities described in this report is approximately $32,440. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2008 -2009 fiscal year. The amount of surplus carried over from the 2007 -2008 fiscal year is anticipated to be approximately $10,000 at the year -end, June 30, 2008. The advisory group of the Balboa Village BID may raise additional funds through various events and fundraisers in addition to the assessments levied. At this time they do not anticipate additional funds for the 2008 -2009 budget. The merchants of Balboa Village appreciate the efforts of the City Council and their continued support of their BID. I Balboa Village Business Improvement District Priorities and Budget Outline July 1, 2008 — June 30, 2009 Funds Available FY End 2007 -2009 10,000 Matching Funds from City 2008 10,200 Funds to be Collected 2008 -2009 12,500 Total Available Funds $32,700 Priorities Marketing & Advertising $24,940 1. Maintain memberships with NB CofC /NB CVB 2. Radio advertising 3. Web Site 4. Direct -mail 5. Special Events 6. October Concert / Other Events Outreach Programs 1. Monthly newsletter 2. Meeting notices $5,300 3. Maintain open communication with residents, BIDS and City Council 4. Replace Trees on Main Street Maintenance $600 1. Doggie Walk Bags Administration $1,600 1. Insurance /Other Administration Total Planned Expenditures $32,440 EXHIBIT C RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2008 TO JUNE 30, 2009, 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 "Act'), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the District Advisory Board has prepared an Annual Report for Fiscal Year 2007 - 2008 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 District Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities provided during the 2007 — 2008 Fiscal Year, a proposed program for the Fiscal Year 2008 - 20098, the District 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 fiscal year July 1, 2008 to June 30, 2009 pursuant to the Act. no Section 3: The boundaries of the benefit zone are on the Balboa Peninsula between A Street and Coronado Street, as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. 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: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 for the shortened period. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 or the shortened period. 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 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 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; Resolution No. 2008 - Balboa Village Business Improvement District q Q 3. Promotion of public events that are to take place on or in any public places in the area; 4. Decoration of any public place in the area; 5. Public area improvements and maintenance activities; 6. The general promotion of retail trade activities. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 24, 2008 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 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, 92663. 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. Resolution No. 2008 - Balboa Village Business Improvement District 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 2008. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 2008 - Balboa Village Business Improvement District I Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange County, California. Number A -6214, September 29, 1961, and A -24831 June 11, 1963. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the following dates: June 14, 2008 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on June 16, 2008 at Costa Mesa, California. Signature r BESOWTION NO. 2M46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2008 TO JUNE 30, 2009, AND FIR 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 - Act -). which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the District Advisory Board has prepared an Annual Report for Fiscal Year 2007 - 2008 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: Seal" 1: The Annual Report filed by the District Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities provided during the 2007 - 2008 Fiscal Year, a proposed program for the Fiscal Year 2008 -20M, the District boundaries, and thel annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the fiscal year July 1, 2008 to June. 30. 2009 pursuant to the Act. Section 3: The boundaries of the benefit zone are on the Balboa Peninsula between A Street and Coronado Street, as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. 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: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 for the shortened period. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 or the shortened period. 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 District shall he 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section S: The benefit assessments shall be collected by the City in one 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 he 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 that are to take place on or in any public places in the area; 4. Decoration of any public place in the area; 5. Public area improvements and maintenance activities; 6. The general promotion of retail trade activities. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 24, 2008 at 7:00 p.m., or as soon thereafter as this matter may heard. in the Council Chambers located al 3300 Newport Boulevard. Newport Beach, California at which time the Council 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.I Protests may be made orally or in writing, but if written, shall be filed with the City Clerk at or before the time fried for the Hearing and contain sufficient documentation to verity business ownership and validate the particular protest. It 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 shell 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. 92663. Telephone: (949) 644 -3225. 1 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. 1 'his 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 10th day of June 2008. MAYOR, Ed Selich ATTEST: CITY CLERK. LaVonne M. Harkless Exhibit A (Boundary Map) is available in the City Clerk's office for viewing. ? Published Newport Beach /Costa Mesa daily Pilot June 14, 2IX18 Sa520