HomeMy WebLinkAbout15 - Approval of Funding Support for Balboa Island Marketing, IncPORT CITY OF
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City Council Staff Report
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June 25, 2019
Agenda Item No. 15
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Mary Locey, Management Analyst
mloceyCcDnewportbeachca.gov
PHONE: 949-644-3031
TITLE: Approval of Funding Support for Balboa Island Marketing, Inc.
ABSTRACT -
The Balboa Island Marketing, Inc. (BIMI), a local non-profit organization, requests
financial support from the City to continue to offer special events and marketing of the
Balboa Island business district to provide visibility, improvement, and promotion of the
area businesses.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Approve and file the Balboa Island Marketing, Inc. Fiscal Year 2018-19 Annual Report
and Fiscal Year 2019-20 Proposed Projects and Budget;
c) Approve $40,000 in funding support for the Balboa Island Marketing, Inc. for Fiscal
Year 2019-20; and
d) Authorize the City Manager to execute a grant agreement with the Balboa Island
Marketing, Inc. for Fiscal Year 2019-20.
FUNDING REQUIREMENTS:
Should the City Council approve the BIMI's request for funding support, the City's
approved FY 2019-20 budget includes sufficient funding to contribute $40,000. It will be
expensed to the City Manager's Office, Economic Development Division, Community
Support Expense Account 01020202-821015.
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Approval of Funding Support for Balboa Island Marketing, Inc.
June 25, 2019
Page 2
DISCUSSION:
On October 19, 1995, the City Council adopted Ordinance No. 95-50 establishing the
Marine Avenue Business Improvement District (BID), formed pursuant to the Parking and
Business Improvement Area Law of 1989, codified in California Streets and Highways
Code Sections 36500 et seq. (1989 Law). The BID was comprised of small businesses in
the 200 and 300 blocks of Marine Avenue on Balboa Island.
Operating as a 1989 Law BID, the board members, accustomed to making quick and
independent decisions in the private -sector environment, found the many laws, policies
and procedures to be complicated and burdensome for what they wanted to accomplish.
After nearly a year of investigating various options to allow more freedom to operate, in
2013, the BID board supported disestablishing the BID to form a merchant association,
which would operate independently of the City of Newport Beach (City). Once the non-
profit organization was established, the City agreed it would provide $40,000 annually for
five years to assist the new organization.
The City Council approved the disestablishment of the BID on May 28, 2013 by Ordinance
No. 2013-12, which went into effect on June 30, 2013. The Balboa Island Marketing, Inc.
became an active entity with the State of California on August 6, 2013. On September 28,
2013, the City Manager executed a grant agreement with the BIMI for $40,000 in City
funding support for the purpose of promoting and strengthening the business district.
The BIMI represents approximately 120 businesses and is committed to supporting
tourism and economic growth, providing business promotion, and advocating for area
enhancements. The merchant association works closely with Newport Beach and
Company (NB&Co.) for its marketing, public relations, and outreach efforts. NB&Co. hosts
and maintains the BIMI's website; develops and posts social media content; and
facilitates a variety of special events, promotional opportunities and strategic
advertisements.
For the past six years, the City has provided $40,000 annually to the BIMI through City
issued grant agreements. Each year, the City Manager included funding for the BIMI in
the City Council approved budget and executed the grant agreements. This is the first
time staff is presenting the matter to the City Council for funding consideration since 2013.
On June 5, 2019, the BIMI submitted a letter requesting the City's continued financial
support; its annual report of accomplishments for FY 2018-19; and its proposed projects
and budget for FY 2019-20 (Attachment A).
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.
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Approval of Funding Support for Balboa Island Marketing, Inc.
June 25, 2019
Page 3
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).
ATTACHMENT:
Attachment A — BIMI Annual Report, Proposed Projects and Budget
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ATTACHMENT A
BALBOA ISLAND MARKETING INC.
2865 East Coast Highway, Suite 360
Corona del Mar, CA 92625
949 675-2337 Fax 949 760-8415
June 5,2019
Mary Locey
City of Newport Beach
100 Civic Center Drive
Newport Beach, CA 92660
Dear Ms. Locey,
On behalf of the Advisory Board of Directors for the Balboa Island Marketing Inc., I would
like to thank the City Council for its support of the BIMI over the past 6 years.
The City has provided the BIMI with an annual support of $40,000 in a five-year agreement,
which concludes at the end of FY 2018-19. As we look forward to dedicating our time and
efforts toward the district's 2019- 2020 FY goals and priorities, the Board would like to
request continued City support funding at the same annual contribution of $40,000.
On Behalf of BIMI, we greatly appreciate the City Council's funding to support Balboa Island
Marketing Inc., and we look forward to continuing our mission to drive business for the
merchants located on Balboa Island. BIMI intends to create programs and promotions to
bring the residents to our places of business as bringing more visitors to the area.
Thank you in advance.
Sincerely,
John Noyes
Balboa Island Marketing Inc. President
Noyes Jewelers
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BALBOA ISLAND MARKETING INC.
A Merchants Association
2018-2019 ANNUAL REPORT
Balboa Island Marketing Inc. represents approximately 120 businesses on
Balboa Island. It is committed to provide visibility, improvement, and promotion
of these businesses to the tourist and local markets, especially during the difficult
off-season winter months.
The fiscal year 2018-2019, the sixth year of Balboa Island Marketing Inc., was
hallmarked by a very successful relationship with Newport Beach and Company
involving print media, social media and merchant communication. It has
continued the outreach effort for the Marine Avenue Improvement Project. Other
Balboa Island Marketing Inc. accomplishments during fiscal year 2018-2019
follow:
* Worked with Newport Beach and Company to improve print, advertising,
website renovation, social media and special event plans.
* Started a programmatic platform in conjunction with Desert Publications to
capture data from customers and improve the shopping experience on
Balboa Island.
* Continued exploring alternatives to parking and transportation issues with
Fashion Island, the City of Newport Beach, Newport Beach and Company,
and Off Island stakeholders.
* Continued decorating Marine Avenue with flags for the summer and the
parade. Holiday decor and lighting installation created a sense of
destination for holiday shopping.
* Co-chaired meetings between residents and merchants to visualize and
guide the revitalization and redevelopment of Marine Avenue
*Advertised on the Newport Beach Guide Map.
*Began a successful program to sell Balboa Island branded coffee mugs and
hats through the local merchants. The continuing program has generated
$700 in net revenue.
* Represented the Association at the Mayor's Dinner.
*Created liaisons with concierges in local hotels that will refer Balboa Island
as a major destination point.
*Kept detailed records, books, and minutes of meetings and events.
*Staged the Balboa Island Carnival, a highly successful event that brought
Island residents into the Marine Avenue shopping district for a fun
afternoon of events and promotions.
*Continue to improve relationships with the residents and the BI IA.
*Created and distributed a newsletter to better inform members of the
Association of projects and progress.
*Printed and distributed a Guide to Balboa Island Restaurants as a basis for
a seasonal Island promotion piece.
The Association will finish the Fiscal Year with approximately $75,500 to pass
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over into the next fiscal year in anticipation
transportation and street improvement programs.
of supporting new
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BALBOA ISLAND MARKETING INC.
A Merchants Association
2019 -2020 PROJECTED PROJECTS
Looking forward to the next fiscal year, BVMA Inc. has the following objectives:
* Develop the programmatic platform in conjunction with Desert Publications
to capture data from customers and improve the shopping experience on
Balboa Island.
*Assist the City of Newport Beach to in executing the Marine Avenue
revitalization and redevelopment plan. Included efforts will be further
merchant and resident outreach, coordinating programs to offset the
potential loss of revenue to merchants during the construction, detailed
input into the traffic patterns required during construction, and making
sure the improvements will offer greater visibility and ambiance to the
Marine Avenue District.
*, Continue the program to improve the website, incorporating contemporary
social media strategies and perhaps a web based "app" for the Island with
the strategic partnership with Newport Beach and Company.
* Participate in the Newport Beach Inspiration Visitor's Guide and the
Newport Beach Guide Map.
* An annual meeting of the Association.
* Continue and expand the Balboa Island themed souvenir item program in
order to raise additional revenue.
* Seek local and out of area sponsors to promote and pay for additional
marketing programs, including sponsored advertising on the website.
* Develop a plan to include Agate Avenue businesses on a more active basis,
perhaps by incorporating them into the street flag/banner program
* Administer the Association using a third -party consultant, as well as
miscellaneous costs including the annual meeting.
* Improve the holiday and seasonal decorating programs with an eye towards
these programs continuing after the redevelopment of Marine Avenue.
* Expand the very popular dining guide for Balboa Island restaurants to
include the Island of Fashion shopping guide.
The merchants of Balboa Island appreciate the efforts of the City Council and
your continued support of their Association.
9
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BALBOA ISLAND MARKETING INC.
A Merchants Association
Budget Outline
July 1, 2019 — June 30, 2020
Funds Available FY End 2019
Revenue from Dues / Ad Programs
Funds from City 2019
Total Available Funds
Expenditures
Marketing & Advertising
Ad Creative
Media Partnerships
Direct Mail
Concierge Program
Internal Marketing Package
Web Site Development
Programmatic platform development
Memberships
Marine Avenue Renovation Programs
Public Outreach, Meetings
Transportation Programs
Village Beautification
Holiday Decorating
Seasonal Decorating
Administration
Administration
Annual Meeting
Mailings, Outreach
Total Planed Expenditures
$75,528
5,000
40,000
$120,528
$46,528
$15,000
$40,000
$15,000
$4,000
$120,528
4
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11:48 AM Balboa Island Marketing Inc.gbw
06/04/19 Balance Sheet
Accrual Basis As of June 4, 2019
Jun 4, 19
ASSETS
Current Assets
Checking/Savings
Union Bank 6153 74,559.83
Total Checking/Savings 74,559.83
Accounts Receivable
Accounts Receivable 940.00
Total Accounts Receivable 940.00
Total Current Assets 75,499.83
TOTAL ASSETS 75,499.83
LIABILITIES & EQUITY
Equity
Unrestricted Net Assets 60,690.38
Net Income 14,809.45
Total Equity 75,499.83
TOTAL LIABILITIES & EQUITY 75,499.83
Page 1
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11:45 AM
06/04/19
Accrual Basis
Balboa Island Marketing Inc.gbw
Profit & Loss
July 2018 through June 2019
Ordinary Income/Expense
Income
Product sales
Grants
Municipal
Total Grants
Total Income
Expense
Adminstrative
Meeting expense
Accounting Fees
Bookkeeping
Other Types of Expenses
Insurance - Liability, D and O
Total Other Types of Expenses
Total Adminstrative
Program Expenses
Security
Mayors dinner
Marketing
Dues/Subs
Outside Contract Services
Total Marketing
Banners/Flags
Advertising
newsletter costs
Promotions
Internet
Print
Total Advertising
Total Program Expenses
Total Expense
Net Ordinary Income
Net Income
Jul '18 -Jun 19
700.62
40, 000.00
40,000.00
40,700.62
125.03
1,244.16
2,585.83
1,058.00
1,058.00
5,013.02
2,500.00
1,300.00
440.00
2,736.98
2,291.34
2,449.83
1,800.00
900.00
6,500.00
11,649.83
20,478.15
25,491.17
15,209.45
15, 209.45
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