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CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC
DEVELOPMENT
PLANNING DEPARTMENT
330D NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
(949) 644 -3200; FAX (949) 644 -3250
Hearing Date:
Agenda Item No.:
Staff Person:
November 22, 1999
6
Daniel R. Trimble
(949) 644 -3230
REPORT TO THE MAYOR AND CITY COUNCIL
PROPOSAL: Marine Avenue Business Improvement District, Annual Report for
2000 Fiscal Year District Renewal, and Adoption of Resolution of
Intention to Levy for 2000 Fiscal Year
SUMMARY: The Marine Avenue Business Improvement District was established
January 1, 1996. This report summarizes the District's
accomplishments during the 1999 fiscal year, its fourth year of
operation, and the proposed activities and budget for the coming year.
The Marine Avenue Business Improvement District Board of Directors,
which serves as the District Advisory Board, requests City Council
approval of the Annual Report and scheduling of the public hearing for
December 13,1999.
SUGGESTED
ACTION: 1. Approve the Marine Avenue Business Improvement District 1999
Annual Report; and
2. Adopt the Resolution of Intention to Levy and set public hearing for
December 13, 1999.
Background
The Marine Avenue Business Improvement District is nearing the end of its fourth year of
operation. The District Advisory Board has requested the renewal of the District for the fiscal year
January 1 to December 31, 2000. The District includes the 200 and 300 blocks of Marine Avenue
as set forth with greater specificity in the map attached as Exhibit A. State law requires that an
annual report be prepared and that a public hearing be held each year prior to renewal of the
District. A summary of accomplishments during 1999 and proposed activities for 2000 are
provided below. The District's 2000 activities are proposed to remain the same as in 1999. No
changes to assessments or to the District boundaries are proposed for this year.
1999 Fiscal Year District Accomplishments
The Marine Avenue Business Improvement District has sponsored the following promotions and
activities during the past year:
Mari= Avenue BID Renewal
November 22.1999
Page 1
I . The distribution of a full color Balboa Island brochure with distribution to hotels and visitor
racks throughout Orange County. The merchants have found this to be a very effective tool in
bringing visitors to Balboa Island.
2. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue
3. Co- sponsor of the Balboa Island Christmas Walk and Home Tour
4. Co- sponsor of the Balboa Island Art Walk
5. Sponsor of the Celebrate Balboa Island parade
6. Regular steam cleaning of sidewalks
Participation in the Newport Beach Conference and Visitors Bureau
8. Participation with the Anaheim/Orange County Visitors and Conference Bureau and the
Orange County Business Council to more widely encourage countywide tourists to visit
Balboa Island
9. Coordination with The Orange County Connection tour bus service. The Bayside stop at
the foot of the bridge is the second -most popular destination in the County, following South
Coast Plaza and exceeding Fashion Island by 39% 0
10. Quarterly "Navigator" Newsletter distributed to all members
Fiscal Year District Revenues
During 1999 the district collected approximately $10,000 and has spent approximately $18,000 for
approved activities. It is anticipated that the assessment collection will be supplemented by
approximately $12,000 distributed to the District through the BID Matching Fund setup by the City
Council for fiscal year 1999 -2000. Including the matching funds, it is anticipated that a remaining
balance of approximately $4,000 will be carried over into the 2000 fiscal year budget for the
District.
Proposed Activities and Budget
The activities proposed for the next year include marketing, advertising, public relations, and public
improvements and maintenance to benefit Balboa Island businesses. The estimated budget for
these activities is approximately $20,000, assuming similar matching funds continue to be provided
in the FY 2000 -2001 City budget.
Assessment Collection
During the District's first two years the assessment was 200 percent of the City's business license
base rate. For 1998 the assessment was reduced to 190 percent of the total business license tax and
again reduced in 1999 to 150 %. No assessment changes are proposed for this year. The exceptions
Page 2
are to remain the same: $25 for second floor businesses, independent contractors working for
• businesses such as hair salons or real estate brokers are exempt, and individuals with more than one
business within the District are required to pay only one assessment. Assessments are collected in
one installment at the beginning of the year, and are pro -rated for new businesses that open during
the year.
Public Notice
As there are no changes to District boundaries or assessment amounts for the 2000 fiscal year there
is no public notice requirement this year. However, a copy of the Resolution of Intent will be
mailed to all business owners within seven days of its adoption by the City Council. The
Resolution of Intent will also be published in the newspaper at least seven days before the public
hearing in accordance with state law. 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 State
law.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
3 �� WN
Attachments: Resolution 99-
Exhibit A (Boundary Map)
1999 Annual Report
Prepared by:
DANIEL R. TRIMBLE
Associate Planner
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Page 3
RESOLUTION NO.99-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT •
BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE
MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE
FISCAL YEAR OF JANUARY 1, 2000 TO DECEMBER 31, 2000.
WHEREAS, the Marine Avenue 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
1999 fiscal year which is on file in the Office of the City Clerk; and
WHEREAS, on November 22, 1999 the Marine Avenue 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 approves the renewal of the Marine
Avenue Business Improvement District for the 2000 fiscal year pursuant to the Act.
Section 2: The City Council hereby declares the intention to levy
assessments for the Business Improvement District for the fiscal year January 1, 2000 to
December 31, 2000 pursuant to the Act. Such benefit assessment shall be as follows:
A. 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 q
E
2
3. Real estate agents
• B. The assessment for second floor businesses shall be $25.
C. The assessment for all other businesses within the District shall be 150
percent of the annual business license tax as established pursuant to Chapter 5.08 of the
Municipal Code.
Section 3: The benefit assessments shall be collected by the City or an
assigned contractor 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 4: 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 5: An owner of more than one business within the District shall
only be required to pay the assessment for the largest business, and shall be exempt from
assessments on additional businesses within the District.
Section 6: The improvements and activities to be funded by the benefit
assessments shall include only the following:
1. Marketing, advertising and public relations
2. Brochure development and distribution
3. Promotion of public events that are to take place on or in any public places in the
area.
4. Decoration of any public place in the area.
Resolution No. 99 -_
Marine Avenue Business Improvement District
3
5. Public area improvements and maintenance activities.
6. The general promotion of retail trade activities. •
7. General administration.
Section 7: The location of the District will remain the same: generally the
200 and 300 blocks of Marine Avenue, as set forth with greater specificity in the map
attached as Exhibit A and incorporated herein.
BE IT FURTHER RESOLVED, that the City Council of the City of
Newport Beach shall conduct a public hearing on December 13, 1999 at 7:00 p.m., or as
soon thereafter as this matter may be heard, in the Council Chambers located at 3300
Newport Boulevard, Newport Beach, California at which time the Council will hear all
interested persons for or against the renewal of the District, the extent of the District and
the specific types of improvements or activities to be funded by the benefit assessment.
Protests may be made orally or in writing, but if written, shall be filed with the City Clerk
at or before the time fixed for the Hearing and contain sufficient documentation to verify
business ownership and validate the particular protest. If written protests are received by
the owners of businesses within the District which pay fifty percent or more of the total
assessments to be levied, no further proceedings to renew the District shall be taken for a
period of one year from the date of the finding of a majority protest by the City Council.
If the majority protest is only against the furnishing of a specific type or types of
improvements or activity or benefit within the District, those types of improvements or
activities or benefit zones shall be eliminated.
0
Resolution No. 99 -_
Marine Avenue Business Improvement District /_
4
Further information regarding the proposed Business Improvement District
0 renewal and expansion 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.
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 1999.
ATTEST:
0 CITY CLERK
0
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ATTACHMENT: Exhibit A (Boundary Map)
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Resolution No. 99 -_
Marine Avenue Business Improvement District
MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT
1999 ANNUAL REPORT
This is the annual report for the fourth year of the Marine Avenue Business
Improvement. District, as required by Section 36533 of the California Streets and
Highways Code. This report covers the District's accomplishments for the
previous year (January 1, 1999 to December 31, 1999) and the proposed
activities and budget for 2000.
The boundaries of the Business Improvement District are generally: the 200 and
300 blocks of Marine Avenue, as set forth with greater specificity in the map
attached as Exhibit A and incorporated herein.
The improvements and activities to be provided for the new fiscal year include:
1. Marketing, advertising and public relations.
2. Brochure development and distribution.
3. Promotion of area public events that take place on or in any public places.
4. Decoration of any public place in the area.
5. Public area improvements and maintenance activities.
6. The general promotion of retail trade activities.
The estimated costs of providing the proposed improvements and activities
described in this report are approximately $20,000.
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 Municipal Code for most businesses or $25 if a second floor business.
Independent professionals such as real estate salespeople are exempt.
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. 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.
Assessments shall be collected in one annual installment at the beginning of the
year, and be pro -rated for new businesses that open during the year.
The amount of surplus carried over from 1999 is approximately $6,000 at the
end of the first ten months of the year. It is anticipated the balance will be
approximately $4,000 at the year -end, December 31, 1999.
The advisory group of the Marine Avenue Business Improvement District may
raise additional funds through various events and fundraisers in addition to the
assessments levied. At this time they do not anticipate additional funds, other
than City matching funds, for the 2000 budget.
Among the Marine Avenue Business Improvement District accomplishments
during 1999 are the following:
1. The distribution of a full color Balboa Island brochure to hotels and visitor racks
throughout Orange County. The merchants have found this to be a very
effective tool in bringing visitors to Balboa Island.
2. Christmas decorations and lighting to enhance holiday shopping along Marine
Avenue.
3. Co- sponsor of the Balboa Island Christmas Walk and Home Tour.
4. Co- sponsor of the Balboa Island Art Walk.
5. Sponsor of Celebrate Balboa Island Parade.
6. Regular steam cleaning of area sidewalks.
7. Participation with the Newport Beach Conference and Visitors Bureau.
8. Participation with the Anaheim /Orange County Visitors and Conference Bureau
and Orange County Business Council to more widely encourage countywide
tourists to visit Balboa Island.
9. Coordination with The Orange County Connection tour bus service. The
Bayside stop at the foot of the bridge is the second -most popular destination
in the County, following only South Coast Plaza and exceeding Fashion
Island by 39 %.
10. Quarterly "Navigator" Newsletter distributed to Members.
The Balboa Island Business Improvement District appreciates the City Council's
continued support.
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