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Home My WebLink About04 - Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2013 - 2014TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 -644 -3002, dkiff @newportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager APPROVED: TITLE: Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2013 - 2014 ABSTRACT: The Corona del Mar Business Improvement District (Corona del Mar BID) Board of Directors has submitted the BID's FY 2012 - 2013 Annual Report for City Council approval and requested renewal of the BID for FY 2013 - 2014. RECOMMENDATIONS: Approve the Corona del Mar Business Improvement District FY 2012 - 2013 Annual Report. 2. Adopt Resolution 2013 -46, a Resolution of Intention to renew the Corona del Mar Business Improvement District and levy assessments in Fiscal Year 2013 - 2014 and set the public hearing date for June 25, 2013. FUNDING REQUIREMENTS: The City of Newport Beach, or its approved designee, collects the member assessments on behalf of the Corona del Mar BID and remits the monies back to the BID for funding the activities described in the attached annual report. In addition to the assessments, the City's proposed FY 2013 - 2014 budget includes sufficient funding for providing $40,000 to the BID for marketing and public area improvements. The proposed budget also includes $10,000 payable to Newport Beach & Company should the BID decide to accept website, branding and other marketing assistance from the marketing organization. Resolution of Intention to Renew the Carona del Mar Business Improvement District and Levy Assessments in FY 2013 - 2014 June 11, 2013 Page 2 DISCUSSION: The Corona del Mar Business Improvement District (BID) was formed pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500 at seq., for the purpose of financing activities and programs to benefit businesses located and operating in the area. The Corona del Mar BID territory encompasses the area generally located on East Coast Highway from Hazel Drive to Avocado Avenue In Corona del Mar. (Boundary Map is attached to the Resolution as Exhibit A.) The Corona del Mar BID Is nearing the end of its FY 2012 - 2013 and the Board of Directors has requested renewal of the BID for FY 2013 - 2014. Pursuant to the 1989 Law, an annual report must be prepared and a public hearing must be held prior to the BID's renewal. The Corona del Mar BID Board of Directors, which serves in an advisory capacity to the City Council, has prepared and submitted the attached annual report (Attachment A) for the Council's review and approval, The report includes a summary of the BID's FY 2012 -2013 accomplishments and revenues as well as its proposed activities and budget for the new fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments. Therefore, City staff is recommending adoption of Resolution 2013 - 46, a Resolution of Intention to renew the Corona del Mar Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2013 - 2014 and setting the public hearing date for renewing the Corona del Mar BID for June 25, 2013, ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQK) 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). Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in FY 2013 - 2014 June 11, 2013 Page 3 Submitted by: Tm Tara Finnigan Public Information Manager Attachments: A. FY 2012- 2013 Corona del Mar BID Annual Report & FY 2013 -2014 Priorities and Budget B. Resolution of Intention 2013 - Attachment A CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2012 -2013 ANNUAL REPORT This is the annual report for the seventeenth year of the Corona del Mar 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) Improvements and Activities for the July 1, 2013 to June 30, 2014 Fiscal Year The following improvements and activities are planned for the Corona del Mar Business Improvement District (BID) for the new fiscal year: Gateway Improvement (MacArthur & Pacific Coast Highway) The BID will work with the City on continued improvements to the gateway entrance at MacArthur and Coast Highway with a modified plan to widen the sidewalk an additional eight feet, add dramatic landscape improvements and relocate eight parking spaces. Parking Proiect Parking in the village needs to be addressed further, especially in light of past studies and to address concerns of both business owners and residents alike. The BID has been working with parking consultant NelsonlNyGaard and City staff to develop an inclusive parking study to address long -term parking issues in the village. Signal Ann Modifications ` be BID will work with the City during its upcoming signal modification work to replace signal arms with new arms to coordinate with the updated, heritage -style street lights in the village. Sidewalk Steam Cleaning The BID recently approved steam cleaning for sidewalks within the District. The BID will initiate outreach to all businesses and a campaign for keeping sidewalks clean. Ongoing cleaning will be evaluated and discussed further with the City. Street Fumiture Maintenance & New Features The BID will continue to maintain and refurbish existing street furniture, trash receptacles, benches and bus stops. In addition, the BID will evaluate the condition and placement of newspaper stands. The BID will work with the City for appropriate placement of bike racks within the village for the first time. Marguerite Proiect The Board seeks to develop various improvements in landscaping, streetscape and other items to foster a sense of identity for the village at the intersection of Marguerite and Pacific Coast Highway. Tree Wells The BID will continue to provide landscape maintenance through an agreement to assure proper care and cultivation of 180 tree well areas. Plaza Upkeen Pursuant to the Memorandum of Understanding with the City, the BID is responsible for the long -term maintenance of the facilities at the Centennial Plaza at Pacific Coast Highway and Marguerite. The BID will repair and replace various elements in the Plaza as needed, Landscaping The BID will continue to provide oversight of overall landscaping in the village, working closely with the City. The BID will fund maintenance and repair of the irrigation backfiow valves that water the street trees. Pocket Park The BID will coordinate development of a new "Pocket Park" by the Hobie Scarf Shop to serve as a village green space, incorporating decorative landscaping, art and searing for pedestrians. 2020 Vision Plan The Board continues to reevaluate and revise the 2020 Vision Plan. Subcommittee meetings to develop new objectives will continue. Efforts will continue to inform business and residential communities of the findings of the Board. Business District Holiday Decor Program and Dolphin Topiary Program The BID will continue to fund and coordinate the installation and maintenance of the annual holiday decorations. The BID will work with a contract vendor and the City on annual permits, lighting maintenance and the installationibreakdown, as in past years. In addition, the BID will continue to fund, coordinate and store the festive seasonal dolphin topiaries at the intersection of Marguerite and Pacific Coast Highway. Street Light Banner Program The BID will fund and coordinate the rotating banner program to highlight holidays as well as annual community events (Scenic 5K, Coastline Classic Car Show, Christmas Walk). Special Events and Outreach The BID will continue the Annual Town Meeting and coordinate a "State of the Business District Address" for its members and residents alike. Also, the BID will contribute funds to the Corona del Mar Chamber to sponsor the annual Christmas Walk. The BID will continue to fund and manage the bi- monthly Business Beautification Award Program recognizing District businesses that have renovated, remodeled or enhanced the aesthetics of their storefronts, contributing to the overall Vision 2020 Plan. 2 The BID will continue its outreach in the community, exhibiting at various monthly and annual events. Programs, collateral materials and BID amaouncements will be available, displayed and communicated through the Corona del Mar Chamber of Commerce, residents' association and at other community events. Website and Communications The BID has been working around an antiquated Website platform for many years. This year, the BID will work with the City and Newport Beach & Company for the development of a state -of -the -art website to enhance the online branding of the business district. The City will fund $10,000 for these efforts with Newport Beach & Company, payable to Newport Beach & Company, on behalf of the BID. Social Media and Online Marketine The BID shall maintain a social media platform, coordinating efforts with Newport Beach & Company to reach outside audiences and developing methods to further stimulate electronic communications with its members. Marketing Campaigns and Collateral Materials The BID will maintain the existing BID marketing programs and develop new strategic campaigns to promote economic growth within the District. The BID will maintain media relations with local press and community associations and maintain or develop new BID marketing collateral materials. The BID shall continue to produce and publish the annual business membership promotional publication called the Directory. The BID will manage a "Shop Local" advertising campaign for the business district, highlighting seasonal shopping and unique offerings of village shops and businesses. Administration/City Liaison The BID shall continue to operate and conduct general business by maintaining a BID Administrator who shall provide a physical and mailing address, telephone answering services, office equipment, meeting space and storage. The BID shall pay for professional administrative services to handle periodic mailings, member communications, database management, meeting coordination and agenda distribution and other administrative tasks. The BID shall provide a BID Administrator to serve as liaison with the City, the BID's financial consultant, and other contractors of the BID. The BID Administrator will coordinate BID business and eliminate the need for City staff time and attention. 3) Cast of Planned Improvements and Activities for FY 2013 -2014 The summarized cost of the improvements and activities proposed is as follows: Improvements Maintenance Outreach Special Events Marketing Programs Administration 87,500.00 24,700.00 8,500.00 36,900.00 20,200.00 43.640.00 3 TOTAL, 221,440.00 4) Method and Basis of Levying the Assessment The method and basis of levying the assessment shall continue as follows: The benefit assessments will be collected by the City in one annual installment. The assessment for new businesses shall be pro -rated according to the number of full months remaining in the BIDS fiscal year. The benefit assessment shall be equal to one hundred fifty percent (150 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Newport Beach 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 to be added shall in no event exceed one hundred percent of the assessment amount due. 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 and 3. Real estate agents. Assessments shall be collected in one annual installment at the beginning of the fiscal year, and be prorated for new businesses that open during the fiscal year. The BID is considering recommending a more aggressive collection effort on delinquent member assessments. S) Surplus Carryover from Fiscal Year 2012 -2013 It is estimated that approximately $84,000 will be carried over from FY 2012 -2013 to FY 2013 -2014. 6) Sources of Contributions Other Than Levied Assessments The BID estimates that approximately $40,000 will be contributed from the City for FY 2013 -2014 for marketing and public area improvements. The BID acknowledges that the City may consider additional funding for the Gateway Improvement Project and the Parking Project study. 7) Past Year Accomplishments FY 2012 -2013 was a successful one for the business district. The BID worked on the following projects and programs, maintained and enhanced existing programs, and developed new projects including: REVITALIZATION IMPROVEMENTS Marguerite Project Gateway Improvement (MacArthur & PCH) Street Furniture & Maintenance Parking Project Plaza Upkeep Sidewalk Steam Cleaning Ell Tree Wells Village Landscaping PROGRAM MANAGEMENT Holiday Decor Program Street Light Banner Program Dolphin Topiary Program Business Beautification Award Program MARKETING & MEMBER BENEFITS Website hosting and maintenance Business Directory Advertising Campaigns Social Media & Online Marketing Marketing Campaigns & Collateral SPECIAL EVENTS Annual Town Meeting Christmas Walk Special Event Outreach ADMINISTRATION Facilities & Equipment Professional Administrative Services The merchants of Corona del Mar want to thank the City Council for their financial support and efforts on behalf of the BID. Corona del Mar Business Improvement District Priorities and Budget Outline July 1, 2013 — June 30, 2014 Income Total FY 2012 -2013 Carryover FY 2013 -2014 Member Assessment Anticipated City Matching Funds Total Available Funds Priorities Improvements 84,000.00 106,000.00 40.00 ?(--00 230,000.00 Marguerite Project 24,000.00 Gateway - MacArthur & PCH 38,000.00 Street Furniture 25,500.00 Maintenance Landscaping, Backflow Valve Inspection 15,200.00 Centennial Plaza Upkeep 500.00 Tree Wells 2,000.00 Street Furniture 6,000.00 Repairs & Other 1,000.00 Outreach Contributions 500.00 Public Relations - Parking Project 5,000.00 Public Relations — Misc. Programs 3,000.00 Special Events Holiday D6cor 25,000.00 Banners 8,400.00 Christmas Walk 3,000.00 Dolphin Topiaries 500.00 Marketing Programs Directory 7,500.00 Marketing Campaigns /Programs 10,000.00 Collateral/Brochure 1,500.00 Member Window Decals 1,200.00 Administration BID Administrator 41,040.00 Website Upgrade 2,000.00 Mailings, Special Admin Costs 600.. 0 TOTAL EXPENDITURES 221,440.00 RESOLUTION NO. 2013- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2013 TO JUNE 30, 2014, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Corona del Mar 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 "1989 Law"), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board, known as the Corona del Mar Business Improvement District Board, has prepared an Annual Report for the 2012 -2013 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on June 11, 2013, the Corona del Mar 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 Corona del Mar Business Improvement District (BID) for fiscal year 2013 -2014 pursuant to the 1989 Law. Section 2: The City Council hereby declares the intention to levy assessments for the BID for the fiscal year July 1, 2013 to June 30, 2014 pursuant to the 1989 Law. Such benefit assessment 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 regulations shall be assessed $250 per year. Resolution No. 2013 - _ Corona del Mar Business Improvement District 2 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 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach 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 Newport Beach 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. The assessment for new businesses shall be pro -rated according to the number of full months remaining in 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 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 Corona del Mar Business Improvement District Fiscal Year 2012 -2013 Annual Report, which is on file with the Office of the City Clerk. Section 6: The location of the BID will remain the same: Generally located on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A. Resolution No. 2013 - Corona del Mar Business Improvement District 3 BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 25, 2013 at 7 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 100 Civic Center Drive, 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 the 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. Further information regarding the proposed BID renewal may be obtained at the City Manager's Office, 100 Civic Center Drive, Newport Beach, CA 92660; 949- 644 -3035. 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 11th day of June, 2013. ATTEST: Leilani I. Brown, City Clerk Attachment: Exhibit A (Boundary Map) Keith D. Curry, Mayor Resolution No. 2013 - Corona del Mar Business Improvement District s a.� '7� ct O WE V Q .yam N N O a® ,