HomeMy WebLinkAbout15 - Balboa Village Business Improvement DistrictNEWPORT CITY OF
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C�CIFO0.NP City Council Staff Report
Agenda Item No. 15
June 28, 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community Development Department
PREPARED BY: James Campbell, Principal Planner
(949) 644 -3210, Icampbell(a)newportbeachca.gov
With Assistance from: Clinton Scott Palmer,
B.I.D. Systems Inc., BID Administration
APPROVED:< —U✓��
TITLE: Balboa Village Business Improvement District Renewal: Conduct
Public Hearing and Adopt Resolution for Renewal of the Business
Improvement District for the Fiscal Year 2011 -2012
ABSTRACT:
The Balboa Village Business Improvement District renewal for fiscal year 2011 -2012.
RECOMMENDATION:
1, Hold public hearing regarding the renewal of the Balboa Village Business
Improvement District (BID);
and
2.a. If protests represent less than 50 percent of the total assessment amount adopt
Resolution No. 2011 -75 confirming the levy of the BID assessment for fiscal year
2011 -2012.
OR
2.b. If protests represent 50 percent or more of the total assessment, abandon the
proceedings to renew the BID.
1
Balboa Village Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution
for Renewal of the Business Improvement District for the Fiscal Year 2011 -2012
June 28, 2011
Page 2
FUNDING REQUIREMENTS:
The proposed 2011 -2012 fiscal year budget includes $14,000.00 funding for this item. It
will be expensed to the City account in the Community Development Department, 2720-
8250
DISCUSSION:
Background
On June 14, 2011, the City Council held a public meeting, approved the Balboa Village
Business Improvement District 2010 -2011 Annual Report, and adopted a Resolution of
Intention to levy and collect assessments for the BID for fiscal year 2011 -2012. Details
regarding the proposed renewal of the BID and annual report are provided in the attached
June 14, 2011, staff report.
A protest hearing must be held each year prior to renewal of a BID. If protests are
received from business owners representing 50 percent or more of the total assessment
amount, the proceedings to renew the BID must be discontinued for at least one year. If
protests represent less than 50 percent of the total assessment, the City Council may
renew the BID.
At the time this report was prepared, no letters of opposition to the BID had been received.
Staff will provide an oral update on any subsequent correspondence and a tabulation of
protests at the City Council meeting.
Public notice of the protest hearing and the Resolution of Intention to modify the basis to
levy and collect assessments for the renewal of the Balboa Village BID has been
published in the Daily Pilot in compliance with state law.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
2
Balboa Village Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution
for Renewal of the Business Improvement District for the Fiscal Year 2011 -2012
June 28, 2011
Page 3
Submitted by:
Kimberly Brandt, I P
Community Devel ment Director
Attachments: A. June 14, 2011 Staff Report
B. Resolution of Confirmation 2011-
3
11
RESOLUTION NO. 2011-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH
CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF
JULY 1, 2011 TO JUNE 30, 2012 FOR THE BALBOA VILLAGE BUSINESS
IMPROVEMENT DISTRICT.
WHEREAS, on June 14, 2011 the BALBOA VILLAGE Business
Improvement District annual report was filed and approved by the City Council; and
WHEREAS, on June 14, 2011 the City Council adopted and published a
Resolution of Intention declaring the intention to levy assessments for the BALBOA
VILLAGE Business Improvement District for a fiscal year July 1, 2011 to June 30, 2012;
and
WHEREAS, a public hearing regarding the renewal of the BALBOA
VILLAGE Business Improvement District was held on June 28, 2011 without a protest
of majority.
NOW, THEREFORE, the City Council of the City of Newport Beach
hereby confirms the levy of assessments as described in the Resolution of Intention
dated June 14, 2011 for the BALBOA VILLAGE Business Improvement District for the
fiscal year July 1, 2011 to June 30, 2012.
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 June, 2011.
Michael F. Henn, Mayor
ATTEST:
Leilani Brown, City Clerk
C
CITY OF
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NEWPORT REACH
C9[, FOR�P City CouncH .Staff Report
Agenda Item No. 7
June 14. 2011
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community Development Department
PREPARED BY: James Campbell, Principal Planner
(949) 644 - 3210, jcampbell(c�newportbeachca.gov
With Assistance from:
Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration
APPROVED: c+.lfJl A.
U
TITLE: Balboa Village Business Improvement District Renewal: 2010 -2011
Annual Report and Adoption of Resolution of Intention to Levy for
Fiscal Year 2011 -2012
ABSTRACT:
Renewal of the Balboa Village Association Business Improvement District (BID) for its
15th year of operation, which includes promotions and activities during the BID's fiscal
year of July 1st, 2011 to June 30th, 2012.
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 28, 2011.
3. Confirm the Balboa Village Business Improvement District 2011 Advisory Board, as
nominated by the 2010 Business Improvement District Advisory Board, as follows:
• Bob Black Catalina Passenger Service
• Butch Wilson Balboa Saloon
• Tony George Surfside Silver
0
Balboa Village Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of
Resolution of Intention to Levy for Fiscal Year 2011 -2012
June 14, 2011
Page 2
• Patrick Moore
• Ralph Rodhiem
• Mike Thompson
• Craig Batley
FUNDING REQUIREMENTS:
Fun Zone Rides
Balboa Boat Rental
Davey's Locker
Baywalk, Inc. — Bungalow Basics
The current recommended budget includes $14,000.00 funding for this item. It will be
expensed to the Community Development Department, in account 2720 -8250, and this
amount is identical to the funds the City contributed last year.
DISCUSSION:
Background
The Balboa Village BID was established April 1, 1996. The BID 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 BID. The BID's Board of Directors, which
serves as the BID Advisory Board, requests City Council approval of the Annual Report
and scheduling of the public hearing for June 28, 2011.
The Balboa Village BID is nearing the end of its 2010 -2011 year of operation and
requests renewal of the BID for the fiscal year July 1, 2011 to June 30, 2012. A summary
of accomplishments during fiscal year 2010 -2011 as well as the proposed activities and
budget for the new fiscal period are provided below.
Fifteenth Year BID Accomplishments
The Balboa Village BID has sponsored the following promotions and activities during the
past twelve months:
• Continued holiday decor program, including a community holiday tree and storefront
painting by Newport Elementary School students.
• Distribution of promotional brochures to local /regional hotels
• Sponsored a celebration in conjunction with the Nautical Museum the weekend
before the start of the NOSA race.
• Maintained and redesigned the 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
• Contributed to the installation of the way finding signs to be located throughout the City
• Provided D &O insurance to the board of directors
Balboa Village Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of
Resolution of Intention to Levy for Fiscal Year 2011 -2012
June 14, 2011
Page 3
• Held Annual Meeting in late April 2011
• Hung banners along Balboa Boulevard during the summer season
Fiscal Year BID Revenues
During the fiscal year the BID received approximately $18,500 in member assessments,
and had a prior period holdover of $2,077. The City provided $14,000 in matching funds.
The BID spent approximately $29,612 for approved activities and anticipates spending
another $3,000 before renewal. It is anticipated that a remaining balance of approximately
$1,500 will be carried over into the new 2011 -2012 fiscal year budget.
A. Proposed Improvements, Activities and Budget
The FY 2011 -2012 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:
• Upgrading and major program changes to the balboavillage.com website
• Installation of holiday themed decorations
• Organization of the NOSA Kick -Off Festival, Support of the "Fun Zone
Tuesdays" Program, and celebration of the 75th anniversary of the Fun Zone.
• Participation with the Newport Beach Chamber
• Reimbursement to the City for excess costs associated with the proposed
Balboa Village gateway sign
• Placement of advertising in tourist 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
• Maintenance of Directors and Operators insurance policy
The estimated cost of providing the proposed improvements and activities to be
undertaken by the BID in FY 2011 -2012 is approximately $37,500. The implementation
of these actions is more fully described in the attached Balboa Village BID Priorities and
Budget Outline for the Fiscal Year 2011 -2012.
The Advisory Board of the Balboa Village BID expects to raise funds in the amount of
$1,000 from event 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
Fiscal Year 2011 -2012 in an amount of $14,000. 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.
0
Balboa Village Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of
Resolution of Intention to Levy for Fiscal Year 2011 -2012
June 14, 2011
Page 4
A M U61 ,GT W, I h7IaN;L9I:UT;
Staff recommends the City Council find 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
Submitted by:
Kimberly Brandt, Al"
Community DevelopYhent Director
Attachments: A. BID Boundary Map
B. FY 2010 -2011 Balboa Village Annual Report and 2011 -2012 Priorities and Budget
C. Resolution of Intention to Levy 2011-
I
Attachment "A"
Balboa Village
Business Improvement District
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Exhibit A
11
Attachment "B"
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2010 -2011 ANNUAL REPORT
This is the annual report for the fifteenth year of the Balboa Village Business
Improvement District, as required by Section 36533 of the California Streets and
Highways Code.
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 2011 to June 2012
The following are activities planned for the new fiscal year:
Website
The district has an established website, balboavillage.com, listing each of the
merchants within the district and containing information relative to visiting the
district and its environs. Sections on history and special events are also featured.
Other Internet advertising opportunities will be explored, including the use of
social marketing and smart phone label scanning to create interest and a
mechanism to determine advertising efficiency.
Holiday Events and Decorations
The District hangs bows and wreaths during the period between Thanksgiving
and Christmas, and has begun a tradition of a community holiday tree lighting
and window - decorating event by the children of Newport Elementary School.
Special Events
Three special events are being planned to help promote the Village as a
recreation, shopping, and dining destination. A third annual Ensenada Race
Kickoff event, in conjunction with the Nautical Museum, is scheduled in April:
support of the Fun Zone Tuesday programs instituted by local merchants will be
implemented, and a celebration of the 75th anniversary of the Fun Zone is slated
to begin in September.
Memberships
Membership in the Newport Beach Chamber will be renewed.
Parking Lot Upgrades
The District will continue reimbursing the City for excess costs for building an
entrance sign and up lighting in the Palm parking lot. This is estimated to be
$15,000 or so dollars paid over 10 years. $1,500 was paid in the last fiscal year.
Advertising
A reprint of the brochure advertising the Balboa area is planned, with distribution
through Certified Folder Company in the off season months..
12
Banner Program
The District has contracted with a display company to fly banners from the light
standards on Balboa Avenue during the summer season to create a sense of
place and destination. This program will be expanded to include double the
amount of banners hung from last year.
Annual Meeting
An annual meeting will be scheduled in late April and the BID will provide
refreshments.
Administrative Costs
The District keeps an Errors and Omissions insurance policy in force to protect
the volunteers on the Advisory Board. Bank service charges are also
anticipated.
Newsletter
A newsletter will be distributed to every merchant on a quarterly basis will inform
them about programs and participatory events during the year.
3) The cost of these activities are projected as follows:
Website
$9,000
Parking Lot Upgrades
$1,500
Holiday Decorations
$7,600
Special Events
$4,500
Memberships
$500
Annual Meeting
$500
Advertising
$7,500
Banner Program
$3,500
Administrative Costs
$1,900
Newsletter
$1,000
TOTAL
$37,500
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 of the assessment amount due. Individuals with
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
2
13
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 2010 -2011
It is estimated approximately $1,500 will be carried over from Fiscal Year 2010-
2011 to Fiscal Year 2011 -2012.
6) Sources of Contribution from other than levy:
The district estimates that there will be approximately $14,000 contributed to the
BID from the City of Newport Beach. There may also be less than $1,000 from
entry fee proceeds from the Art Fair held in April.
7) Past Year Accomplishments
The Fiscal Year of 2010 -2011 was a successful one for the District. The BID
instituted and completed the following projects:
• Continued holiday decor program, including a community holiday tree and
storefront painting by Newport Elementary School students.
• Distribution of promotional brochures to local /regional hotels
• Sponsored a celebration in conjunction with the Nautical Museum the
weekend before the start of the NOSA race.
• Maintained and redesigned the 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
• Contributed to the installation of the way finding signs to be located
throughout the City
• Provided D &O insurance to the board of directors
• Held the Annual Meeting in late April 2011
• Hung banners along Balboa Boulevard during the summer season
• Advertised in various print publications and brochure distribution.
The merchants of the Balboa Village want to thank the City Council for their financial
support and efforts on behalf of the BID.
3
14
Balboa Village
Business Improvement District
Priorities and Budget Outline
July 1, 2010 — June 30, 2011
Funds Available FISCAL FY End 2010 - 2011
$1,500
Funds to be Collected FY 2011 -2012
$21,000
Anticipated Matching Funds from City
$14,000
Anticipated Funds from Special Event
$1,000
Total Available Funds $37,500
Priorities
Amount
Website
$9,000
Parking Lot Upgrades
$1,500
Holiday Decorations
$7,600
Special Events
$4,500
Memberships
$500
Annual Meeting
$500
Advertising
$7,500
Banner Program
$3,500
Administrative Costs
$1,900
Newsletter
$1,000
TOTAL EXPENDITURES $37,500
4
15
Attachment °C
1
RESOLUTION NO. 2011-
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
JULY 1, 2011 TO JUNE 30, 2012, 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
WHEREAS, on June 14, 2011, the Balboa Village Business
Improvement District annual report was filed and approved by the City Council.
NOW, THEREFORE, the City Council of the City of Newport Beach
resolves as follows:
Section 1: The City Council hereby declares its intention to renew
the Balboa Village Business Improvement District (BID) for fiscal year 2011 -2012
year pursuant to the Act.
Section 2: The City Council hereby declares the intention to levy
assessments for the BID for the fiscal year July 1, 2011 to June 30, 2012
pursuant to the Act. Such benefit assessment shall be as follows:
Resolution No. 11-
Balboa Village Business Improveme9t pistrict
PAP
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
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 BID shall be
100 percent of the annual business license tax as established
pursuant to Chapter 5.08 of the Municipal Code.
Section 3: 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 4: The benefit assessments shall be collected by the City
in one annual installment, with collections for new businesses in the BID 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 BID's fiscal year.
Section 5: 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
Resolution No. 11-
Balboa Village Business Improvemept- Djstrict
3
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
Business Improvement District Fiscal Year 2010 -2011 Annual Report, which is
on file with the office of the City Clerk.
Section 6: The location of the BID 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.
BE IT FURTHER RESOLVED, that the City Council of the City of
Newport Beach shall conduct a public hearing on June 28, 2011 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 BID, the
extent of the BID 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 BID which pay fifty percent or more of the total
assessments to be levied, no further proceedings to renew the BID 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 BID, those types of
improvements or activities or benefit zones shall be eliminated.
Resolution No. 11-
Balboa Village Business Improvement strict
n
Further information regarding the proposed BID 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 2011.
ATTEST:
Leilani Brown, City Clerk
ATTACHMENT: Exhibit A (Boundary Map)
Michael F. Henn, Mayor
Resolution No. 11-
Balboa Village Business Improveme t istrict
Balboa Village
Business Improvement District
0 100 206 30u Fee! /` Balboa Business Improvement
® / / Crstrut Boundary +
Exhibit A
21