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HomeMy WebLinkAbout09 - Balboa Village BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 9 June 8, 2010 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Planning Department Kathlyn Bowden, AICP; Economic Development Coordinator 949 - 644 -3230, kbowden(a)newportbeachca.00v SUBJECT: Balboa Village 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 Balboa Village Business Improvement District for its 14th year of operation, for the BID's fiscal year of July 1st, 2010 to June 30th, 2011? RECOMMENDATION: 1. Approve the Balboa Village 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. 3. Confirm the Balboa Village Business Improvement District 2010 Advisory Board, as nominated by the 2009 BID Advisory Board, as follows: • Bob Black • Butch Wilson • Tony George • Brock Morrison • Ralph Rodheim • Jim Fournier • Craig Batley Catalina Passenger Service Balboa Saloon Surfside Silver Rainey Fine Art Balboa Boat Rental Tales of Balboa Baywalk, Inc. — Bungalow Basics Balboa Village BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 2 DISCUSSION: Background The Balboa Village Business Improvement District (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 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, 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 Balboa Village 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. Fourteenth Year District Accomplishments The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past twelve months: • Continued holiday decor program • Distributed promotional brochures to local /regional hotels. • Sponsored the Balboa Village Art Fair to coincide with the start of the NOSA race from Balboa Pier • Maintained www.balboavillage.com website • Provided clean up bags for residents walking their dogs. • Participated with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention Bureau Fiscal Year BID Revenues During the fiscal year the BID received approximately $18,500 in member assessments, and had a prior period holdover of $4,900. The City provided $9,500 in matching funds. The BID spent approximately $29,300 for approved activities and anticipates spending another $3,300 before renewal. It is anticipated that a remaining balance of approximately $500 will be carried over into the new 2010 -2011 fiscal year budget. Proposed Improvements. Activities and Budget The FY2010 -2010 Priorities and Budget Outline, including specific goals for each Balboa Village BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 3 category, is submitted by the BID Advisory Board as part of the attached Annual Report. The highest priorities for the upcoming fiscal year are: • Maintenance of www.balboavillage.com website • Installation of holiday themed decorations • Organization of the Balboa Village Art Fair • Participation with the Anaheim Visitor's and Convention Bureau • Reimbursement to the City for costs to install the Balboa Village gateway sign • Placement of advertising in tourist publications, the Newport Beach Visitor's Guide and the Anaheim Visitor's Guide, and other local publications • Placement of brochures in certified folder racks at regional hotels • Installation of decorative banners on Balboa Avenue • Organization of the Balboa Village BID Annual Meeting • Distribution of bags for animal waste collection • Maintenance of Directors and Operators insurance policy The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 10 -11 period is approximately $23,400. The implementation of these actions is more fully described in the attached Balboa Village BID Priorities and Budget Outline for the Fiscal Year 2010 -2011. The Advisory Board of the Balboa Village Business Improvement District does not expect to raise funds 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 $10,000. 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: L � THIL BOWDEN Economic Development Coordinator Submitted by: SHARON Z. WOO Assistant City Man ,4@br Balboa Village BID 2010 -2011 Annual Report & Resolution of Intent to Levy June 8, 2010 Page 4 With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration 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" BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fourteenth year of the Balboa Village 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 following are activities planned for the 2010 -2011 fiscal year: Website The District will maintain their website, www.balboavillage.com, listing each of the merchants within the District and containing information relative to visiting the District and its businesses. Holiday Themed Decorations The District will install decorations on public streetlights within the District during the period between Thanksgiving and Christmas. Special Events The District plans to continue the Balboa Village Art Fair in conjunction with the NOSA Newport to Ensenada Race start weekend, inviting plein air painters to display and sell their works in the parking lot located at Palm and Balboa. A media campaign is also planned in local print advertising venues to promote the Fair. Memberships The District will continue its membership in the Anaheim Visitor's and Convention Bureau, allowing the ability to advertise to over 600,000 tourists who contact the AVCB for information. Parking Lot Upgrades The District will begin the first of its reimbursement payments to the City for excess costs associated with building a Village gateway sign when the new parking lot is constructed on the Balboa Market property. This is estimated to be approximately $15,000 paid over a period of 10 years. Advertising The District has planned an advertising program for the 2010 -2011 fiscal year, including quarterly ads in tourist publications distributed to regional hotels, ads in the Newport Beach Visitor's Guide and the Anaheim Visitor's Guide, folder distribution, and advertising in local publications. Banner Program The District will hang decorative banners from the public streetlights on Balboa Avenue to create a sense of place and destination. Annual Meeting The District will host an annual meeting in late April 2011. Doggie Walk Bags The District will purchase and distribute bags for animal waste collection on a quarterly basis, with volunteers stocking the dispensers. Administrative Costs The District keeps a Directors and Operators insurance policy in force to protect the volunteers on the Advisory Board. 3) The costs of these activities are projected as follows: Website $ 1,500 Parking Lot Upgrades $ 1,500 Holiday Decorations $ 5,500 Special Events (Balboa Village Art Fair) $ 1,000 Memberships $ 800 Annual Meeting $ 500 Advertising $ 5,400 Banner Program $ 5,000 Administrative Costs $ 1,600 Doggie Walk Bags $ 600 TOTAL $23,400 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 (100 %) of the assessment amount due. Individuals with 2 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 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 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 2009 -2010 The District estimates that less than $500 will be carried over from Fiscal Year 2009 -2010 to Fiscal Year 2010 -2011. 6) Sources of Contributions from other than levy The District estimates that there will be approximately $10,000 contributed to the District from the City of Newport Beach. The District may collect less than $1,000 from entry fee proceeds from the Balboa Village Art Fair held in April 2011. 7) Past Year Accomplishments The Fiscal Year of 2009 -2010 was a successful one for the District. The District instituted and completed the following projects: • Continued holiday decor program • Distribution of promotional brochures to local /regional hotels • Sponsored the Balboa Village Art Fair to coincide with the start of the NOSA race from Balboa Pier • Maintained website • Provided clean up bags for residents walking their dogs • Participation with Newport Harbor Chamber of Commerce and Visitor's Bureaus of Newport Beach and Anaheim/Orange County 3 The merchants of the Balboa Village want to thank the City Council for their financial support and efforts on behalf of the District. H Balboa Village Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available at end of Fiscal Year 2009 - 2010 $ 500 Funds to be Collected July 2010 $12,500 Anticipated Matching Funds from City $10,000 Anticipated Funds from Balboa Village Art Fair $ L000 TOTAL AVAILABLE FUNDS $24,000 Priorities Amount Website $ 1,500 Parking Lot Upgrades $ 1,500 Holiday Decorations $ 5,500 Special Events (Balboa Village Art Fair) $ 1,000 Memberships $ 800 Annual Meeting $ 500 Advertising $ 5,400 Banner Program $ 5,000 Administrative Costs $ 1,600 Doggie Walk Bags $ 600 TOTAL EXPENDITURES $23,400 5 Attachment "B" RESOLUTION NO. 2010- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE BALBOA VILLAGE 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 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 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 Balboa Village 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 Balboa Village 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. Such benefit assessment shall be unchanged from the previous fiscal year and 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 Resolution No. 10- Balboa Village Business Improvement District 2 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 District shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. 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. 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 Improvement District Fiscal Year 2010 -2011 Annual Report, which is on file with the office of the City Clerk. Resolution No. 10- Balboa Village Business Improvement District Section 7: The location of the District 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. 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- Balboa Village Business Improvement District MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) 4 Resolution No. 10 -_ Balboa Village Business Improvement District Balboa Village Business Improvement District CZ �., I f �- - $ fff (s 6 pqR f ti 0 100 '200 300 Feet �` Balboa Business Improvement f / .District Boundary Exhibit A