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HomeMy WebLinkAbout08 - Newport Beach Restaurant Association BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 8 June 8, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Leigh DeSantis; Economic Development Administrator 949 - 644 -3207, Idesantis(aDnewportbeachca gov SUBJECT: Newport Beach Restaurant Association Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2010 -2011. ISSUE: Should the City Council renew the Newport Beach Restaurant Association Business Improvement District for its 15th year of operation, for the BID's fiscal year of July 1st, 2010 to June 30th, 2011? RECOMMENDATION: 1. Approve the Newport Beach Restaurant Association Business Improvement District Fiscal Year 2010 -2011 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the Public Hearing for June 22, 2010. DISCUSSION: Background The Newport Beach Restaurant Association Business Improvement District (BID) was established November 13, 1995. The District boundaries are coterminous with the Newport Beach corporate limits as set forth with greater specificity in the map attached as Exhibit A. The BID is nearing the end of its fourteenth year of operation and requests renewal of the BID for fiscal year 2010 -2011. 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. The BID's Board of Directors, NBRA BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 2 which serves as the District Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for June 22, 2010 The Newport Beach Restaurant Association BID is nearing the end of its 2009 -2010 year of operation and requests renewal of the BID for the fiscal year July 1, 2010 to June 30, 2011. A summary of accomplishments during fiscal year 2009 -2010 as well as the proposed activities and budget for the new fiscal period are provided below. • Organized, prepared, and implemented two separate Restaurant Week events (one in October 2009 and one in January 2010) • Creation and distribution of the NBRA Dining Guide • Updated website and on -line reservation system, with launch scheduled for July 2010 Maintained toll -free dining reservation system for all NBRA restaurants • Sponsored industry- specific seminars (Serve Safe and ABC) and educational campaigns (DUI awareness & EPS ban) with the NBRA membership • Mid -year increase of levy per City Council direction Fiscal Year District Revenues During fiscal year 2009 -2010, the BID received approximately $96,000 in member assessments. The City provided $85,000 in matching funds. The BID received an additional $100,000 in special events funds from the City for two Restaurant Weeks. The BID was able to raise an additional $53,700 in cash sponsorships for Restaurant Week and other events. Total cash revenue for 2009 -2010 was approximately $334,000. The BID spent approximately $307,000 for approved activities, of which $186,000 was spent on two Restaurant Week events. The BID's current account balance is approximately $60,300 with outstanding liabilities of approximately $25,000. It is anticipated that a year end balance of approximately $35,000 will be carried over into the FY 2010 - 2011 budget. An additional $50,000 of City budgeted funds from the current fiscal year has been rebudgeted in 2010 -11 to fund next year's January 2011 Restaurant Week. Proposed Activities and Budget The FY2010 -2011 Priorities and Budget Outline, including specific goals for each category, is submitted by the BID Advisory Board as part of the attached Annual Report. The highest priorities for the upcoming fiscal year are: • Creation of new informational brochures • Printing of informational brochures, stationary and membership decals • Redesign and distribution of the Newport Beach Dining Guide. • Maintenance of the centralized toll -fee phone reservation system • Production and design of new ad campaign NBRA BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 3 • Implementation of local and national advertising campaigns • Maintenance of newportbeachdining.com website • Utilization of social media marketing and internet campaigns • Development of online public relations campaigns • Participation in cooperative marketing campaigns including restaurant kiosks and a bus wrap advertising campaign • Organization of the NBRA Annual Meeting • Participation with various community events • Participation with Anaheim Orange County Visitors' and Convention Bureau, California Restaurant Association, Newport Beach Chamber of Commerce, and Visit Newport Beach, Inc. The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 10 -11 period is approximately $173,525. The implementation of these actions is more fully described in the attached Newport Beach Restaurant Association BID Priorities and Budget Outline for the Fiscal Year 2010 -2011. The Advisory Board of the Newport Beach Restaurant Association Business Improvement District expects to raise $24,750 in sponsorships in addition to the assessments levied for the upcoming year. It is anticipated that matching funds will be approved by the City Council for the Fiscal Year 2010 -2011 in an approximate amount of $35,000. The attached Annual Report further describes the budget and activities for the upcoming year, and has been filed with the City Clerk's office as required by California law. FUNDING AVAILABILITY: Business Improvement District matching funds are included in the City Manager's recommended budget for 2010 -11 in Account No. 2720 -8250. Prepared by: LEIGH DESANTIS Economic Development Administrator With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Submitted by: IV %) NBRA BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 4 Attachments: Attachment A —FY 10 -11 Annual Report and FY 10 -11 Priorities & Budget Attachment B — Resolution of Intention to Levy 2010 - Exhibit A — BID Boundary Map Attachment "A" NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fourteenth year of the Newport Beach Restaurant Association Business Improvement District. As required by Section 36533 of the California Streets and Highways Code, the annual report shall contain the following information: 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 2010 to June 2011 The NBRA BID will provide the following programs: Collateral Development: Creation, Production & Printing The BID will create and print a New Establishment informational brochure, and reprint NBRA stationary and NBRA membership decals. Newport Beach Dining Guide The BID will update, redesign, and print the Newport Beach Dining Guide. Dining Guide Distribution Plan The BID will distribute the Dining Guide through different vendors to reach the tourist market in regional hotels, airports, large corporation break rooms, and other locations to assure maximum exposure. Phone Reservation S stein The BID will provide a centralized toll -free phone reservation system for online dining reservations, information, or dining guide requests. Ad Campaign Creative Production and Design The BID will create new brand photography and new advertising campaign copy. Print & Online Media Advertising Campaigns The BID will implement national campaigns through the Visit Newport Beach and the Anaheim Orange County Visitors' and Convention Bureau. Local advertising campaigns are planned with the LA Times, the Newport Beach Chamber of Commerce, the Corona del Mar Chamber of Commerce, and other BID media partners. NBRA Website Development The BID will maintain their website, www.newportbeachdining com, listing all Newport Beach dining establishments and other information of interest to diners, such as the Newport Beach Restaurant Week. The Advisory Board has identified several improvements, including improved database management and search abilities, restaurant menus display, improved online reservation capability, integrated driving directions, exported Dining Guide data capabilities, and banner ad management. Social Media Marketing & Internet Campaigns The BID will expand utilization of existing Facebook and Twitter accounts and expand newsletter distribution through the intemet/email. Public & Media Relations Campaigns The BID will provide online public relations services. Cooperative Marketing Campaigns The BID will participate in cooperative marketing campaigns including restaurant kiosks targeting the Anaheim drive market and a bus wrap advertising campaign. NBRA Annual Meeting The BID will hold its Annual Meeting at a local restaurant, where it will recognize sponsors and provide a review of financial standing of the BID, elect members to the Advisory Board, review program achievements, and ask for feedback from the general membership. Community Event Participation The BID will participate and contribute to the following events: Newport Beach Relay for Life, Police Appreciation Breakfast, Newport Beach Mayor Dinner and other special events. NBRA BID Professional Memberships The BID will maintain memberships with the following entities: Anaheim Orange County Visitors' and Convention Bureau, California Restaurant Association, Newport Beach Chamber of Commerce, and Visit Newport Beach, Inc. 2 ^r Marketing & Association Management Fee The BID will provide BID management, marketing and public relations services. Administration Fee The BID will sponsor database management, miscellaneous operational reimbursements and administration fees, annual phone bill, and postage. 3) The costs of these activities are projected as follows: Collateral Development: Creative, Production & Printing $ 2,500 Newport Beach Dining Guide $ 40,500 Dining Guide Distribution Plan $ 11,950 Phone Reservation System $ 5,000 Ad Campaign Creative Production and Design $ 3,500 Print & Online Media Advertising Campaigns $ 19,575 NBRA Website Development $ 3,600 Social Media Marketing & Internet Campaigns $ 12,500 Public & Media Relations Campaigns $ 3,500 Cooperative Marketing Campaigns $ 15,000 NBRA Annual Meeting $ 5,750 Community Event Participation $ 3,900 NBRA BID Professional Memberships $ 2,250 Marketing & Association Management Fee: $ 36,000 Administration Fee $ 8,000 TOTAL $173,525 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. Assessments shall be collected at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. For establishments with greater than ten (10) employees, and whose business license tax is less than $600, 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 plus an additional $65. For establishments with greater than ten (10) employees, and whose business license tax is $600 or more, 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 plus an additional $145. 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 (100 %) of the assessment amount due. 3 5) Surplus Carryover from Fiscal Year 2009 -2010 The BID estimates that $30,000 will be carried over from Fiscal Year 2009 -2010 to Fiscal Year 2010 -2011. 6) Sources of Contributions from other than levy The BID estimates that there will be approximately $35,000 contributed to the BID from the City of Newport Beach. In addition, the BID anticipates receiving $3,570 from sponsors of the annual luncheon and $21,000 from sponsors of the Dining Guide. 7) Past Year Accomplishments The Fiscal Year of 2009 -2010 was a successful one for the BID. The BID instituted and completed the following projects: • Organized, prepared, and implemented two separate Restaurant Week events (one in October 2009 and one in January 2010) • Creation and distribution of the NBRA Dining Guide • Maintained website and online reservation system • Maintained toll -free dining reservation system for all NBRA restaurants • Sponsored industry- specific seminars (Serve Safe and ABC) and educational campaigns (DUI awareness & EPS ban) with the NBRA membership The merchants of the Newport Beach Restaurant Association want to thank the City Council for their financial support and efforts on behalf of the BID. H Newport Beach Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available FISCAL FY End 2009 — 2010 $ 35,000 Funds to be Collected July 2010 $ 95,000 Anticipated Matching Funds from City $ 35,000 Anticipated Funds from Sponsorships $ 24,750 TOTAL AVAILABLE FUNDS $189,750 Priorities Amount Collateral Development: Creative, Production & Printing $ 2,500 Newport Beach Dining Guide $ 40,500 Dining Guide Distribution Plan $ 11,950 Phone Reservation System $ 5,000 Ad Campaign Creative Production and Design $ 3,500 Print & Online Media Advertising Campaigns $ 19,575 NBRA Website Development: $ 3,600 Social Media Marketing & Internet Campaigns $ 12,500 Public & Media Relations Campaigns $ 3,500 Cooperative Marketing Campaigns $ 15,000 NBRA Annual Meeting $ 5,750 Community Event Participation $ 3,900 NBRA BID Professional Memberships $ 2,250 Marketing & Association Management Fee: $ 36,000 Administration Fee $ 8,000 TOTAL EXPENDITURES $173,525 5 Attachment "B" RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2010 TO JUNE 30, 2011, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Newport Beach 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 2010 -2011 fiscal year which is on file in the Office of the City Clerk; and NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: On June 8, 2010, the Newport Beach Restaurant Association Business Improvement District annual report was filed and approved by the City Council. Section 2: The City Council hereby declares its intention to renew the Newport Beach Restaurant Association Business Improvement District for the 2010 -2011 fiscal year pursuant to the Act. Section 3: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year July 1, 2010 to June 30, 2011 pursuant to the Act. Effective on January 1, 2010, such benefit assessment shall be as follows: A. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. Resolution No. 10- NBRA Business Improvement District 0 2 B. For establishments with greater than ten (10) employees, and a license tax less than $600, 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 plus an additional $65. C. The assessment for all businesses whose license tax is $600 or greater, the benefit assessment within the District shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code, plus an additional $145. Section 4: 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 to be added shall in no event exceed one hundred percent of the assessment amount due. 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 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. 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. The implementation of these actions is more fully described in the Newport Beach Restaurant Association Business Improvement District Fiscal Year 2010- 2011 Annual Report, which is on file with the office of the City Clerk. Resolution No. 10- NBRA Business Improvement District l's 3 Section 7: 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 8: 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 22, 2010 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 renewal 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 which 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 or benefit within the District, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed Business Improvement District renewal and expansion may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658; (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. 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 day of 2010. Resolution No. 10- NBRA Business Improvement Dishict 1'`: MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) rd Resolution No. 10- NBRA Business Improvement District