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HomeMy WebLinkAbout08 - Restaurant Association BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 8 June 10, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh M. De Santis, Economic Development Administrator ldesantis@city.newport-beach.ca.us SUBJECT: Restaurant Association Business Improvement District Renewal: Annual Report for Fiscal Year 2007 -2008 and Adoption of Resolution of Intention to Levy Assessments for Fiscal Year of July 1, 2008 to June 30, 2009. ISSUE: The continuing operation of the Newport Beach Restaurant Association Business Improvement District requires an annual renewal action by the City Council. RECOMMENDATION: 1. Approve Restaurant Association Business Improvement District Fiscal Year 2007 -2008 Annual Report; and Adopt the Resolution of Intention to Levy Assessments and set the Public Hearing for June 24, 2008. DISCUSSION: Background: The Newport Beach Restaurant Association Business Improvement District (BID) is nearing the end of its twelfth year of operation and requests renewal of the BID for fiscal year 2008 -2009. California law requires that an Annual Report be prepared and submitted to the City Council and that the City Council hold a Public Hearing each year prior to renewal of a Business Improvement District. Attached for your review and approval is the Restaurant Association BID's Annual Report (Attachment A). The report summarizes the Restaurants Association BID's accomplishments for 2007 -2008. Also provided is a proposed budget for FY 2008 -2009 listing the activities and work program to be undertaken upon renewal. Restaurant Association BID Renewal June 10, 2008 Page 2 Highlights of the Restaurant Association's 2007 -2008 year include: • The Second Annual Newport Beach Restaurant Week - Seventy member restaurants participated in Restaurant Week attracting an estimated 190,000 diners, generating approximately $5,320,000 in sales and adding around $53,200 to the City's General fund revenues from this event alone. • The NBRA saw a 30% increase in use of the NBRA website and dining reservation system. The website attracted upwards of 20,000 unique visitors monthly. The Reservation system averaged 750 -900 calls per month with approximately 600 direct connections. • Redesigned, published and distributed 150,000 NBRA Dining guides. • Co- sponsored the Newport Beach Relay for Life charity program. • Co- sponsored a DUI awareness campaign in conjunction with the Police Department. • Sponsored reduced cost Serve Safe and ABC Seminars for members. • Cooperated in joint campaigns with the Newport Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Orange County Tourism Council, Anaheim Visitors & Convention Bureau and the California Restaurant Association. Additional details and more accomplishments are contained in Attachment A. The BID's Board of Directors, which serves as the District Advisory Board, requests City Council approve of the 2007 -2008 Annual Report and schedule the Public Hearing on the BID levy for June 24, 2008. Fiscal Year District Revenues: During the FY 2007 - 2008 the BID collected approximately $60,500 in member assessments. It also received $34,000 in "matching" funds from the City. The BID received an additional $50,000 in special events funds from the City for Restaurant Week. The BID was able to raise an additional $26,000 in cash sponsorships for Restaurant Week and in- kind contribution worth an estimated $245,000. Total cash revenue for 2007 -2008 was approximately $185,000. M Restaurant Association BID Renewal June 10, 2008 Page 3 The BID spent approximately $174,400 for approved activities, of which $98,400 went for Restaurant Week. The BID's current account balance is approximately $12,600 with outstanding liabilities of around $10,000; it is anticipated that a year end balance of approximately $2,000 will be carried over into the FY 2008 - 2009 budget. Proposed Activities and Budget: The activities proposed for the next year include two Restaurant Weeks, an expanded partnership with the Newport Beach Conference and Visitors Bureau, preparing members for a ban on Styrofoam, plus on -going marketing, advertising, and public relations to benefit Restaurant Association businesses. The estimated budget for these activities is approximately $288,000. As part of the City budget process the NBRA is seeking an increase in its "matching" funds from $34,000 to $69,000 or a one -for -one match with the $69,000 it raises by assessing members. The "matching" funds from the City have not changed since inception of the NBRA twelve years ago but the self assessment has gone up. 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). Funding Availability: The Restaurant Association Business Improvement District "matching" funds of $34,000 are included in City Budget Account No. 2720 -8250. The NBRA is also seeking via separate action a supplemental funding of $185,000. The Resolution of Intention affects only the Assessment of the restaurants in the BID. The City Council may take action on the BID renewal without committing to action on the supplemental budget request as attached. Prepared by: r� -P Leigh M. De Santis Economic Development Administrator Submitted by: Sharon Z. Wood Assistant City Ma ger Attachments: A — FY 2007 -2008 Annual Report prepared by Clinton Scott Palmer of BID Systems Inc., BID Administration and Proposed 2008- 2009 NBRA Budget B — Resolution 2008- _ Intention to Levy 3 Attachment A RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2007 - 2008 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 the Fiscal Year 2007 -2008. Prior Year Accomplishments The merchants of Restaurant Association have found their eleventh year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts, Inc, to create and execute the FY 2007 -2008 Marketing Plan of Work & Budget • Organized, prepared and implemented the second annual - Newport Beach Restaurant Week" as an annual ongoing event. • Redesigned, published &t distributed 150,000 NBRA Dining Guides through the following outlets: Certified Folder Display Distributors, Western Brochure Distributors, California Welcome Center, Conference &c Visitors Bureaus, hotels, airports, local conferences and events, Anaheim Convention Center display racks, direct mail, special events, media fulfillment, and phone and internet inquiries. • Maintained NBRA Website: www.newportbeachdining.com (with upwards of 20,000 unique visitors monthly) • Maintained Toll free Dining Reservation System for all NBRA restaurants with an average of 750 -900 calls per month and 500 -600 direct connections to various NBRA restaurants • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Orange County Tourism Council, Anaheim Visitors & Convention Bureau and the California Restaurant Association • Implemented NBRA media campaign to promote Newport Beach Dining, website, dining guide and phone reservation system • Negotiated over $75,000 worth of Newport Beach Dining in -kind media ad placements *Does not include Restaurant Week Sponsorships or in -kind advertising campaigns • Placed full panel advertisements in the Newport Beach Visitors Guide the Anaheim Resort Rapid Transit Guide, the Anaheim Visitor Guide, Newport Beach Chamber Map, Preferred Destinations, CA Official Visitor Guide, Los Angeles Times Magazine, OC Metro Menus, Orange County Cuisine, Destination Hyatt, Dining Out Magazine, Orange Coast Magazine, OC Weekly, Orange County Register &t Daily Pilot. • Participated in NB Chamber, NBCVB, &r AOC VCB, OCTC and CRA Cooperative Marketing Programs • Secured a NBRA Co -op sponsorship panel display and referral program at the California Welcome Center to promote Newport Beach Dining • Negotiated two complimentary panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA Mailed NBRA newsletters from the Board of Directors to all members ■ Developed and updated a comprehensive member listing and database "t • Co- sponsored the Newport Beach Relay For Life and promoted Newport Beach Dining to public at various community events. • Sponsored reduced cost Serve Safe and ABC seminars • Cosponsored a DUI awareness campaign in conjunction with the Newport Beach Police Department • Hosted NBRA annual luncheon membership networking meeting Proposed Activities The improvements and activities to be provided for the year include: I. Implementation of new FY 2008 — 2009 Comprehensive Marketing & Publicity Plan of Work & Budget 2. Marketing and Advertising campaigns to promote NBRA programs 3. Restaurant Association BID Member and Community Outreach 4. Active Partnership with the Newport Beach and Anaheim Conference and Visitor's Bureau, Newport Harbor Area Chamber of Commerce, California and National Restaurant Associations. 5. Continuation of Restaurant Week in January 2009 with a proposed second Restaurant Week Campaign in September 2009 *A separate Restaurant Week Report will be submitted with the supplemental NBRA FY 2008 -2009 budget request. Proposed Budget and Account Status The estimated cost of providing the proposed improvements and activities for the fiscal year in this report is approximately $3I5,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2008 - 2009 Fiscal Year. The District's current account balance is approximately $5,300 at the end of the eleventh month of the previous fiscal year. It is anticipated the balance will be approximately $2,000 or less at the year -end, June 30, 2008, and will be carried over to the next fiscal year. City funding, if approved by the City Council, will be added to the amount designated for marketing activities in the following new fiscal year, July 2008 to June 2009. Thank You 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 $33,471 of matching funds, and the additional $50,000 of supplemental marketing funds provided by the City for FY 2007 - 2008. Page 2 t; Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2008 —June 30, 2009 Funds Available FY End 2008 -2009 $ 2,000 Funds to be collected July 2008 $69,000 Anticipated Additional Matching Funds from City $34,000 Anticipated Funds from Increased Matching Funds $35,000 Anticipated Additional Funds for Restaurant Week(s) City &r Sponsors $150,000 Anticipated Total Available Funds $290,000 Planned Expenditures Percent of Budget Budget Amount 1. Comprehensive Marketing &t Publicity Plan Creative Development &C Execution $30,000 • Implement the current Marketing &t Publicity Plan • Identify and present new marketing opportunities to the Board • Supervise creative, production, printing and other Marketing PIan efforts • Develop marketing partnerships, sponsorships &t negotiate in -kind media buys 2. Media Advertising Buys $30,000 Expanded Print Media Campaign: Local Market: Daily Pilot, OC Register, LA Times, OC Metro, Orange Coast, Dining Out Magazine, Coast Magazine, etc Tourism Market: CA State, Anaheim Visitor Guides, Newport Beach Visitor Guide, Huntington Beach Hyatt In -Room, Newport Beach Chamber Map, etc. 3. Marketing Collateral Development $35,000 • NBRA Branding, Creative 8t Ad Development • Dining Guide Production & Reprint • Dining Guide Distribution 4. Communications • Maintain Toll-Free Dining Reservation System • Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Partnership Marketing &ti Memberships • Anaheim Visitors '&t Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau $20,000 $10,000 Page 3 • Orange County Tourism Council - Welcome Center 6. Restaurant Week • Marketing • Promotion • Media Buys • Advertising • Campaign Coordination 6. Special Events • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships $180,000 $10,000 Page 4 1 ATTACHMENT B RESOLUTION NO. 2008- 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 JULY 1, 2008 TO JUNE 30, 2009, 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 the 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 Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for the fiscal year 2007 - 2008, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares its intention to renew the Business Improvement District for the period of July 1, 2008 to June 30, 2009 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: 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. Resolution No. 08-- Restaurant Association Business Improvement District I 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 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, Califomia, 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. Resolution No. 08-- Restaurant Association Business Improvement District N 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 ATTEST: CITY CLERK MAYOR 011e. Resolution No. 08-- Restaurant Association Business Improvement District