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HomeMy WebLinkAbout04 - Restaurant Association BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. Y June 9, 2009 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 2009 -2010 and Adoption of Resolution of Intention to Levy Assessments for Fiscal Year of July 1, 2009 to June 30, 2010. ISSUE: The continuing operation of the Newport Beach Restaurant Association Business Improvement District requires an annual renewal action by the City Council. RECOMMENDATIONS: 1. Approve Restaurant Association Business Improvement District Fiscal Year 2009 -2010 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments; and 3. Set the Public Hearing for June 23, 2009. DISCUSSION: Background: The Newport Beach Restaurant Association Business Improvement District (BID) is nearing the end of its thirteenth year of operation and requests renewal of the BID for fiscal year 2009 -2010. 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 previous fiscal year 2008 -2009. Also Restaurant Association BID Renewal June 9, 2009 Page 2 provided is a proposed budget for FY 2009 -2010 listing the activities and work program to be undertaken upon renewal. Highlights of the Restaurant Association's 2008 -2009 year include: The Third Annual Newport Beach Restaurant Week — Close to seventy member restaurants participated in Restaurant Week attracting an estimated 215,000 diners, generating approximately $6,450,000 in sales and adding around $64,500 to the City's General fund revenues from this event alone. In FY 2008 -2009, the total combined NBRA BID Marketing budget (which includes Restaurant Week) was approximately $250,000. It is important to note that the total actual value of the NBRA BID Comprehensive Marketing & Public Relations Campaign (including in -kind) is valued at over $575,000. Thus, the NBRA BID budget was leveraged by 230 %. • The NBRA website attracted upwards of 25,000 unique visitors monthly. The Reservation system averaged 750 -900 calls per month with approximately 500 -600 direct connections. • Supported City Council initiative to restrict the use of expanded poly- styrene food containers in Newport Beach. • Cooperated in joint campaigns 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. • Co- sponsored a DUI awareness campaign in conjunction with the Police Department. • Sponsored reduced cost Serve Safe and ABC Seminars for members. • Co- sponsored the Newport Beach Relay for Life charity program. 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 2008 -2009 Annual Report and schedule the Public Hearing on the BID levy for June 23, 2008. Fiscal Year District Revenues: During the FY 2008 - 2009 the BID collected approximately $87,000 in member assessments. It received $36,021 in budgeted "matching" funds and $35,000 in supplemental matching funds from the City to approximate a $1/$1 match. The BID also received $100,000 in special events funds from the City for two Restaurant Weeks. The first Restaurant Association BID Renewal June 9, 2009 Page 3 occurred in January 2009 and the second will occur in October 2009. The BID was able to raise $12,121 in cash sponsorships and in -kind contributions worth an estimated $250,000 in connection with the January 2009 Restaurant Week. Total cash revenue for 2008 -2009 was approximately $279,882. The BID spent approximately $223,695 for approved activities, of which $101,741 went for the January 2009 Restaurant Week. The BID's current account balance is approximately $116,287 with outstanding liabilities of around $110,000 ($50,000 for the October 2009 Restaurant Week and $60,000 of accounts payable); it is anticipated that a year -end balance of approximately $6,187 will be carried over into the FY 2009 - 2010 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, a new partnership with the recently established Tourism BID, redesigning and publishing an updated Newport Beach Dining Guide, plus on -going marketing, advertising, and public relations to benefit Restaurant Association businesses. The estimated budget for all these activities is approximately $315,000. As part of the City budget process the NBRA is asking the City Council for two things. First, to again provide an additional match of $33,250 to bring the NBRA up to an approximate one - for -one match of the dollars it raises by assessing members. Second the NBRA is asking that the City Council continue to support the Restaurant Weeks at the level of $47,500 each for a total of $95,000. These two requests are included in the City Manager's budget check list. 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 approximately $35,000 are included in City Budget Account No. 2720 -8250. The Resolution of Intention submitted here for approval affects only the Assessment of the restaurants on themselves. The City Council may take action on the BID renewal without committing to any action on the supplemental budget request as shown in Attachment B. Approval of any supplemental budget request is a separate action. Prepared by: Leigh M. D antis Economic Development Administrator Restaurant Association BID Renewal June 9, 2009 Page 4 Submitted by: Sharon Z. Wood Assistant City MoAager Attachments: A —FY 2009 -2010 Annual Report prepared by Clinton Scott Palmer of BID Systems Inc., BID Administration B -Proposed 2009-2010 NBRA Budget prepared by Clinton Scott Palmer of BID Systems Inc., BID Administration C — Resolution 2009 - _ Intention to Levy Attachment A RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL YEAR 2009 -2010 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 2009 -2010. Previous Year Accomplishments (Fiscal Year 2008 -20091 The Restaurant Association Business Improvement District is pleased to report to the City Council their organizations contributions to the economic stability and growth of Newport Beach over the past year including: Programs • Organized, prepared and implemented the third annual "Newport Beach Restaurant Week" in January 2009. • Expanded Newport Beach Restaurant Week to include a second week scheduled to occur October 16th -22'd, 2009. • Continued distributing NBRA Dining Guides through the following outlets: Certified Folder Display Distributors, Western Brochure Distributors, California Welcome Center, Conference & 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 25,000 unique visitors monthly and online reservation system) • 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 • Sponsored reduced cost Serve Safe and ABC seminars • Cosponsored a DUI awareness campaign in conjunction with the Newport Beach Police Department • Implemented an industry wide "Green Initiative" program in conjunction with the City of Newport Beach and the City's new law eliminating the use of expanded polystyrene. Marketing & Public Relations • Implemented NBRA media campaign to promote Newport Beach Dining, website, dining guide and phone reservation system • Secured media partnerships with LA Times Community Newspapers, Orange Coast Magazine, OC Weekly, 944 Magazine and Orange County Register. • Secured internet marketing partnerships with Opentable.com, Amaranth, Yelp.com, OCMenus.com &t Greer's OC. • Secured national, regional and local publicity promoting Newport Beach Dining • 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, and The Daily Pilot. • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Orange County Tourism Council, Anaheim Visitors &t Convention Bureau and the California Restaurant Association • Participated in NB Chamber, NBCVB, &t AOC VCB, OCTC and CRA Cooperative Marketing Programs ■ Secured direct marketing initiative with NBCVB &r American Express • Secured a NBRA Co -op sponsorship panel display and referral program at the California Welcome Center to promote Newport Beach Dining. However, the State has closed these offices and an alternative form of outreach will need to be developed. • Secured a NBRA Co -op sponsorship with the Anaheim Transit Authority 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 NBRA Management • Supported the City Council initiative to restrict the use of expanded poly - styrene food containers in Newport Beach • Conducted NBRA annual membership meeting with a program focused on going green and replacing expanded poly- styrene products. ■ Mailed NBRA newsletters from the Board of Directors to all members ■ Developed and updated a comprehensive member listing and database • Retained California Marketing Concepts, Inc. to create and execute the FY 2008 -2009 Marketing Plan of Work & Budget Support for Community Charitable Events ■ Co- sponsored the Newport Beach Relay For Life, Police Appreciation Breakfast, and promoted Newport Beach Dining to public at various community events such as the Taste of Newport. Basis for Levying Assessments The assessment for establishments with less than eleven (11) employees shall be a flat $50.00. The assessment for establishments with greater than ten (10) employees shall be equal to 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Preliminary_ Summary of 2008 -2009 Budget Revenues and Expenditure Revenues Funds Available FY End 2007 -2008 $ 7,740 Members Contributions (Levy) 2008 -2009 $ 87,000 Matching Funds from City $ 36,021 Supplemental Matching Funds $ 35,000 Dining Guide $ 2,000 Two Restaurant Weeks City $100,000 Sponsors for January 2009 $12,121 Total $279,882 Page 2 *The City in June 2008 allocated $100,000 to support the expansion of Restaurant Week to a second event in October 2009. It is being expended over two FY 08/09 and 09/10. And will reflect in the funds available at end of FY for the 2009 -2010 Budget. Expenditures Comprehensive Marketing &t Publicity Plan $ 22,750 Media Advertising Buys $12,153 Marketing Collateral Development $ 11,871 Communications $ 11,838 Partnership Marketing &C Memberships $ 545 Restaurant Week $101,741 Special Events $ 2,797 Estimated Accounts Payable before 6/30/09 $ 60,000 Sub Total $223,695 Sub Total $273,695 Estimated Unallocated Carry -over % 6,187 Total $279,882 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 $36,021 of matching funds, and the additional $135,000 of supplemental marketing funds provided by the City for FY 2008 - 2009. Page 3 Attachment B RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT PROPOSAL FOR FISCAL YEAR 2009 -2010 Proposed Activities for 2009 -2010 The improvements and activities to be provided for the year include: 1. Implementation of new FY 2009 — 2010 Comprehensive Marketing &r Publicity Plan of Work &z Budget 2. Marketing and Advertising campaigns to promote Restaurant Association BID programs 3. Position Newport Beach as "Southern California's Premier Dining Destination" through expansion of strategic, results driven programs to generate increased revenue, measurable results and provide new opportunity to leverage over $500,000 of added value to the NBRA budget and City investment. 4. Re- launch Restaurant Association BID web site: NewportBeachDining.com using the latest internet technology to stay competitive and grow online dining reservation component 5. Restaurant Association BID Member and Community Outreach 6. Expand Restaurant Association BID benefit program&r develop valuable purveyor and industry partnerships. 7. Leverage partnership marketing opportunities through active partnership with the Newport Beach and Anaheim Conference and Visitor's Bureau, Orange County Tourism Council, Newport Harbor Area Chamber of Commerce, California, Green and National Restaurant Associations. 8. Develop tangible ways to measure the effectiveness of the marketing plan of work based on increased restaurant sales and visibility through the NBRA BID media and publicity plan, dining guide distribution, web site and central reservation system usage. 9. Continuation of Restaurant Week in October 2009 with proposed bi- annual Restaurant Week Campaigns in January and October 2010. *A separate Restaurant Week Report will be submitted with the supplemental NBRA FY 2009 -2010 budget request. 10. Establish a working partnership with the newly formed Tourism BID to further joint goals. Proposed Budget and Account Status The estimated cost of maintaining previous levels of service and of providing the proposed improvements and. increased activities for the fiscal year 2009 -2010 is approximately $315,000. The implementation of the proposed work program is more fully described in the attached Priorities and Budget Outline for the 2009 - 2010 Fiscal Year, The District's current account balance is approximately $56,000 at the end of the eleventh month of the current fiscal year. It is anticipated the balance will be approximately $56,000 or less at the year -end, June 30, 2009, 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 2009 to June 2010. Page 4 Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2009 -June 30, 2010 Estimated FY 2008 -2009 Carry -over $ 56,000 Members Contributions (Levy) 2009 -2010 $ 70,000 Estimated Matching Funds from City $ 35,000 *Requested Supplemental Matching Funds $ 33,250 *Requested Supplemental Funds for two Restaurant Weeks $ 95,000 *Estimated Sponsors Income two Restaurant Weeks $ 25,000 *Estimated Total Available Funds $314,250 Planned Expenditures Proposed Budget Amount 1. Comprehensive Marketing &s Publicity Plan $30,000 Creative Development &r Execution • Implement the current Marketing &t Publicity Plan • Identify and present new marketing opportunities to the Board • Supervise creative, production, printing and other Marketing Plan efforts • Develop marketing partnerships, sponsorships &r 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 • NBRA Branding, Creative &t Ad Development • Dining Guide Production & Reprint Dining Guide Distribution 4. Communications • Maintain Tall-Free Dining Reservation System • Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Partnership Marketing &t Memberships • Anaheim Visitors &e Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau $35,000 $20,000 $10,000 LM M • Orange County Tourism Council - Welcome Center 6. Two Restaurant Weeks 1/2010 & 10/2010 $180,000 • Marketing • Promotion • Media Buys • Advertising • Campaign Coordination 6. Special Events $10,000 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships Estimated Total Program Costs $315,000 Page 6 ATTACHMENT C RESOLUTION NO. 2009- 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, 2009 TO JUNE 30, 2010, 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 2009 -2010 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 previous fiscal year 2008 - 2009, 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, 2009 to June 30, 2010 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 100 percent of the City's 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. 3. Promotion of public events. 4. The general promotion of restaurant trade activities. Resolution No, 09- Restaurant Association Business Improvement District 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 23, 2009 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, 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. 09- Restaurant Association 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 2009. ATTEST: CITY CLERK MAYOR Resolution No. 09-- Restaurant Association Business Improvement District Attachment B REVISED RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT PROPOSAL FOR FISCAL YEAR 2009 -2010 Basis for Levying Assessments The assessment for establishments with less than eleven (II) employees shall be a flat $50.00. The assessment for establishments with greater than ten (10) employees shall be equal to 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Proposed Activities for 2009 -2010 The improvements and activities to be provided for the year include: 1. Implementation of new FY 2009 - 2010 Comprehensive Marketing &r Publicity Plan of Work & Budget 2. Marketing and Advertising campaigns to promote Restaurant Association BID programs 3. Position Newport Beach as "Southern California's Premier Dining Destination" through expansion of strategic, results driven programs to generate increased revenue, measurable results and provide new opportunity to leverage over $500,000 of added value to the NBRA budget and City investment. 4. Re- launch Restaurant Association BID web site: NewportBeachDining.com using the latest internet technology to stay competitive and grow online dining reservation component 5. Restaurant Association BID Member and Community Outreach 6. Expand Restaurant Association BID benefit program&z develop valuable purveyor and industry partnerships. 7. Leverage partnership marketing opportunities through active partnership with the Newport Beach and Anaheim Conference and Visitor's Bureau, Orange County Tourism Council, Newport Harbor Area Chamber of Commerce, California, Green and National Restaurant Associations. 8. Develop tangible ways to measure the effectiveness of the marketing plan of work based on increased restaurant sales and visibility through the NBRA BID media and publicity plan, dining guide distribution, web site and central reservation system usage. 9. Continuation of Restaurant Week in October 2009 with proposed bi- annual Restaurant Week Campaigns in January and Cktober 2010. "A separate Restaurant Week Report will he submitted with the supplemental NBRA FY 2009 -2010 budget request. 10. Establish a working partnership with the newly formed Tourism BID to further joint goals. Proposed Bud et and Account Status The estimated cost of maintaining previous levels of service and of providing the proposed improvements and increased activities for the fiscal year 2009.2010 is approximately $315,000. The implementation of the proposed work program is more fully described in the attached Priorities and Budget Outline for the 2009. 2010 Fiscal Year. Page 4 The Districts current account balance is approximately $56,000 at the end of the eleven[ month of the current fiscal year. It is anticipated the balance will be approximately $56,000 or less at the year -end, June 30, 2009, 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 2009 to June 2010. Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2009 -June 30, 2010 With Supplemental Without Estimated FY 2008 -2009 Carry-over $ 56,000 $ 56,000 Member Contributions (Levy) 2009.2010 $ 70,000 $ 70,000 Estimated Matching Funds from City $ 35,000 $ 35,000 "Requested Supplemental Matching Funds $ 60,000 *Requested Supplemental Funds for 2 Restaurant Weeks $ 100,000 "Estimated Total Available $346,000 $186,000 "Funds depend on approval of a supplemental budget request Planned Expenditures Proposed Budget Amount With Supplemental Without 1. Comprehensive Marketing & Publicity Plan $30,000 $30,000 Creative Development & Execution • Implement the current Marketing & Publicity Plan • Identify and present new marketing opportunities to the Board • Supervise creative, production, printing and other Marketing Plan efforts • Develop marketing partnerships, sponsorships & negotiate in -kind media buys 2. Media Advertising Buys $30,000 $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 $35,000 • NBRA Branding, Creative Est Ad Development • Dining Guide Production & Reprint • Dining Guide Distribution Page 5 1 4. Communications $60,000 • Maintain Toll Free Dining Reservation System • Website Update and Internet marketing or • Website Maintenance only • Newsletter Development, Printing and Postage • Database Development and Update 5. Partnership Marketing & Memberships $10,000 • Anaheim Visitors &t Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau • Orange County Tourism Council - Welcome Center $20,000 $10,000 6. Two Restaurant Weeks 1/2010 & 10/2010 $100,000 $51,0110 • Marketing • Promotion • Media Buys • Advertising • Campaign Coordination 7. Special Events $10.000 $10,000 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships Estimated Total Program Costs $346,000 $186,000 Page 6 Matching Fund Distribution Table for FY 2009 -2010 TOTAL COLLECTIONS Five Year Average Matching Funds Available BID ADMIN Distributions # in reports FY 08/09 $ CDM $ 111,000.00 35,000.00 Restaurant $ 87,000.00 Marine Ave Balboa $ 20,000.00 $ Marine Ave $ 13,800.00 $ 70,074.00 $ 231,800.00 74,594.00 Matching Funds Available BID ADMIN Distributions # in reports CDM $ 49,500.00 Restaurant $ 35,000.00 Balboa $ 10,200.00 Marine Ave $ 8,000.00 $ 102,700.00 COUNCIL AGEJIDA N0. FY 07/08 FY 06/07 FY 05/06 FY 04/05 Total % 5Yr S 92,765 00 $ 78,045.00 $ 70,074.00 $ 74,594.00 S 426,478.00 48.43% S 66,834.75 $ 66,855.00 $ 38,343.00 $ 49,090 00 $ 308,122 75 3499% $ 16,215.00 $ 14,997.00 $ 17,017.00 $ 15,494 00 $ 83,723 00 9.51% S 12,129.00 S 13,261.00 $ 9,070.00 $ 13,968 00 S 62,228 00 7.07% $ 187,943.75 $ 173,158.00 $ 134,504.00 $ 153,146.00 $ 880,551.75 100.00% 5 140,000.00 (Budget Amount) $ 40,000.00 ($35,000 + $5,000 Reserve) $ 100,000.00 (Amount to be distributed) Actual based on 5 Yr Average % $ 48,430.00 $ 34,990.00 $ 9,510.00 $ 7,070.00 $ 100,000.00 BID Admin & Reserve COUNCIL A N NO. Q Attachment A REVISED RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL ACCOMPLISHMENTS REPORT FOR FISCAL_ YEAR 2008 -2009 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 2009 -2010. Previous Year Accomplishments (Fiscal Year 2008 -2009) The Restaurant Association Business Improvement District is pleased to report to the City Council their organizations contributions to the economic stability and growth of Newport Beach over the past year including: Programs • Organized, prepared and implemented the third annual "Newport Beach Restaurant Week" in January 2009. • Expanded Newport Beach Restaurant Week to include a second week scheduled to occur October 16th -22nd 2009 • Continued distributing NBRA Dining Guides through the following outlets: Certified Folder Display Distributors, Western Brochure Distributors, California Welcome Center, Conference &t 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.ne4pgrtbeachdininy.com (with upwards of 25,000 unique visitors monthly and online reservation system) • 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 • Sponsored reduced cost Serve Safe and ABC seminars ■ Cosponsored a DUI awareness campaign in conjunction with the Newport Beach Police Department • Implemented an industry wide "Green Initiative" program in conjunction with the City of Newport Beach and the City's new law eliminating the use of expanded polystyrene. Marketing & Public Relations • Implemented NBRA media campaign to promote Newport Beach Dining, website, dining guide and phone reservation system • Secured media partnerships with LA Times Community Newspapers, Orange Coast Magazine, OC Weekly, 944 Magazine and Orange County Register. • Secured intcrnet marketing partnerships with Opentable.com, Amaranth, Yelp.com, OCMenus.com &t Greer's OC. ■ Secured national, regional and local publicity promoting Newport Beach Dining ■ 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, and The Daily Pilot. • 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 • Participated in NB Chamber, NBCVB, & AOC VCB, OCTC and CRA Cooperative Marketing Programs ■ Secured direct marketing initiative with NBCVB & American Express • Secured a NBRA Co -op sponsorship panel display and referral program at the California Welcome Center to promote Newport Beach Dining. However, the State has closed these offices and an alternative form of outreach will need to be developed. ■ Secured a NBRA Co -op sponsorship with the Anaheim Transit Authority 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 NBRA Management • Supported the City Council initiative to restrict the use of expanded poly - styrene food containers in Newport Beach • Conducted NBRA annual membership meeting with a program focused on going green and replacing expanded poly- styrene products. • Mailed NBRA newsletters from the Board of Directors to all members ■ Developed and updated a comprehensive member listing and database • Retained California Marketing Concepts, Inc. to create and execute the FY 2008 -2009 Marketing Plan of Work & Budget Snort for Community Charitable Events • Co- sponsored the Newport Beach Relay For Life, Police Appreciation Breakfast, and promoted Newport Beach Dining to public at various community events such as the Taste of Newport. Basis for Levying Assessments The assessment for establishments with less than eleven (11) employees shall be a flat $50.00. The assessment for establishments with greater than ten (10) employees shall be equal to 100 percent of the annual business license tax as established pursuant to Chapter 5,08 of the Municipal Code. Preliminary Summary of 2008 -2009 Budget Revenues and Expenditure Revenues Funds Available FY End 2007.2008 $ 7,740 Members Contributions (Levy) 2008 -2009 $ 87,000 Matching Funds from City $ 36,021 Supplemental Matching Funds $ 35,000 Dining Guide $ 2,000 Two Restaurant Weeks City $100,000 Page 2 Sponsors for lanuary 2009 $12.121 Total $279,882 `The City in June 2008 allocated $100,000 to support the expansion of Restaurant Week to a second event in October 2009. It is being expended over two FY 08/09 and 09/10. And will reflect in the funds available at end of FY for the 2009 2010 Budget. Expenditures Comprehensive Marketing & Publicity Plan $ 22,750 Media Advertising Buys $ 12,153 Marketing Collateral Development $ 11,871 Communications $ 11,838 Partnership Marketing & Memberships $ 545 Restaurant Week $101,741 Special Events $ 2,797 Estimated Accounts Payable before 6/30/09 $ 60.000 Sub Total $223,695 Carry -over for Oct.2009 Restaurant Week $ 50.000 Sub Total $273,695 Estimated Unallocated Carry -over $ 6,187 Total $279,882 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 $36,021 of matching funds, and the additional $135,000 of supplemental marketing funds provided by the City for FY 2008 - 2009. Page 3 AutMv,/,d hi Publish >Jselllwllkrnl, of all AmJ, mdudmg public notice. hc Dori ToTiI Ilse Stir, n hu Orurf ul Orange('ouci('ahhvma Numliet A 62(4. Scptcm6cr 20 , .ahl A 24871 June 11, Irb3 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 13. 2009 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on June 16, 2009 at Costa Mesa, California. Signature—` Q a t^ LLl 6b I_ W fa W cr aS m LL UU2 jl Ulf a H— Q r� RESOLUTION Of THE CITY COUNCIL Of THE CITY Of NEWPORT BEACH DECLARING S INTENTION TO RENEW THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT UNCT FOR THE RSCAI YEAR Of ANY 1, 2009 TO JUNE 30, 2010, AND FIX THE Am An PUCE OF A PunK wam6. FHEREAS, the Restaurant Association Business Improvement District as established in 1996 pursuant to the Parking and Business npruvemenl Juts Law of 1969. California Streets and Highways Code. action 36500 at sea . (hereinafter the 'Act'). which requires an annual rport to be filed and approved by the City Council far each fiscal year nd FIER[AS, the Advisory Board has prepared an Annual Report lot the scat Year 2009 2010 which is on file in the Office of the City Clerk. and fll[RIAS, the Act requires the City Council to declare its intention to vy and collect assessments within the Business Improvement Dist it! it the neat fiscal year OW, THER[TOlE, the City Council of the City of Newport Beach 'solves as follows. action 1: The Annual Reports filed by the Advisory Board are hereto ,proved the Annual Report for, the upcoming fiscal year 2009 2010 >ntairo a description, of iniprovemantt and activities to be provided nder this renewal along with the areas boundaries, and the annual nessment withm the District. Also submitted was an Annual Report it the previous fiscal year 2008 2009 detailing what was accomplished wring last fiscal at caftan 21 The City Council hereby declares its intention to renew the usmess Improvement District for the period of July 1. 2009 to June 1. 2010 pursuanl to the Act. etlbe 3, The location of the D strgt will remain the same. any !slauranl doing business within the boundaries of the City of Newport each is part of the District. salon 4t The City Council intends to levy and impose and order the Alechon of a benefit assessment upon persons conducting business in ie District. Such benefit essessment shall be as tollows. A. For establishments with less than eleven (11) employees. the ssessment shall be a flat $50.00 8 For establishments with greater than ten (10) employees. the benefit ssessment shall be equal to 100 percent 01 the City's annual business ;erase tax as established pursuant to Chapter 5.08 of the Municipal ode, fellow Sr The benefit assessments shall be collected -0y the City in ne annual installment, with collections for new businesses on the District n the day of the issuance of a business license by the Cn99 The r ssessment for new businesses shall be pro rated according to the umber of full months remaining in the District's fiscal year saflan 61 The penalty for delmquent payments shall be twenty five ercent par month. providing that the penalty to be added shall in no rent exceed one hundred percent of the assessment amount due. eaBOn 7, The improvements and activities to be funded by the benefit ssessments 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 activ dies 5 Educational and training classes for members 6 Memberships in various drganitahcns deemed to promote dmmq in ewpod Beach. E IT FURTHER RESOLVED, that the City Council of the Cityy of Newport each shall conduct a public hearing on June 23. 2009 at 7 DO p. m. or s soon thereafter as this matter may be heard. in the Council Chamber ,caled at 3300 Newport Boulevard. Newport Beach, California at which me the Council will hear all interested persons Inc or against the slabfishment of the District, the extent of file District and the specific rpes of improvements or activities to be funded by the benefit ssessment Protests may be made Orally ar in writing, but if written tall be filed with the City Clark at or before the time foxed for the string and contain sufficient documentation to verity business ownership and validate the particular protest If written pralesls are ecerved by the owners of businesses within the District that pay fifty ercent or mare of the total assessments to be levied. no further roceedings to renew the District shall be taken for a period of one ear from the dale of the finding of a majority protest by the City ouncil II the majority protest is only against the furnishing of a specific rpe or types of improvements or activity within the Drstiicl, those rpes of improvements or activities shall be ebm hated. urther information regarding the proposed Business Improvement islncl rtnewal may be obtained at the Newport Beach City Hall, ewpart Boulevard, Newport Beach. California. 92658. Telephone (949) he City Clerk shall cause this resolution of intention to be poblishldl nce in a newspaper of general circulation in the City al least seven alit before the public hearing , his resolution shall take effect immediately upon adoption Passed and dolled by the City Council Of the City of Newport Beach at a regular ,eating and thereon held on the 9th day of June. 2009 RR