HomeMy WebLinkAbout20 - Corona del Mar Business Improvement DistrictE�vvo CITY OF NEWPORT BEACH
Odd R m COMMUNITY AND ECONOMIC Hearing Date: August 22, 2000
DEVELOPMENT
PLANNING DEPARTMENT Agenda Item No.: 20
3300 NEWPORT BOULEVARD Staff Person: Daniel R. Trimble
NEWPORT BEACH, CA 92658
(949) 644 -3230
(949) 644 -3200; FAX (949) 644 -3250
REPORT TO THE MAYOR AND CITY COUNCIL
PROPOSAL: Corona del Mar Business Improvement District Renewal
Public Hearing and levying of Assessments for 2000 -2001 Fiscal Year
SUMMARY: Conduct public hearing for renewal of the Corona del Mar Business
Improvement District for the 2000 -2001 Fiscal Year and adopt
Resolution of Confirmation.
SUGGESTED
ACTION: 1. Hold public hearing regarding the renewal of the Corona del Mar
Business Improvement District; and
2. a. If protests represent less than 50 percent of the total assessment
amount adopt the Resolution of Confirmation.
RIO
b. If protests represent 50 percent or more of the total assessment
abandon the proceedings to renew the District.
Background
On July 22, 2000 the City Council held a public meeting, approved the Corona del Mar Business
Improvement District 1999 -2000 Annual Report and adopted a Resolution of Intention to levy and
collect assessments for the District for the 2000 -2001 fiscal year. Details regarding the proposed
renewal of the District and annual report are provided in the attached July 25, 2000 staff report.
Discussion
A protest hearing must be held each year prior to renewal of a Business Improvement District. If
protests are received from business owners representing 50 percent or more of the total assessment
amount, the proceedings to renew the District 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 District.
At the time this report was prepared, one letter of opposition to the District had been received. Staff
will provide an oral update on any subsequent correspondence and a tabulation of protests, if
necessary, at the City Council meeting. The Resolution of Intention has been published in the Daily
Pilot in compliance with state law.
One letter of protest was received on March 9, 2000. The businessperson felt that they did not
receive the same level of benefit from the BID activities because of their location and the fact that
they are not a retail use. As a result, they want to be either excluded from the assessment or be
assessed a smaller amount. The BID has always maintained that their activities help to improve and
reinforce the image of Corona del Mar as a desirable location and business address. So that all
businesses — including retail, offices and post office box listings — with a Corona del Mar address
benefit as a result of the improvements that the BID assessments are funding.
Advisory Board
The Corona del Mar Business Improvement District Advisory Board elections have recently been
completed for the new fiscal year. The nine members of the 2000 - 2001 Advisory Board will be:
John Blom, Walt Boice, Andrew Costa, Don Glasgow, Linda Leonhard, Gary Naumann, Wade
Roberts, Mark Schulein and Jim Walker. The officers will be decided by the Advisory Board at the
first meeting of the new fiscal year.
The BID by -laws have been changed to extend the terms of the Advisory Board from one to two
years. Three or four Advisory Board positions will be elected each year for staggered two -year
terms.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Prepared by:
DANIEL R. TRIMBLE
Associate Planner
With assistance from:
CLINTON SCOTT PLAMER
Cathimarie's Inc., BID Administration
Attachments: Resolution No. 2000 - _Confirming Renewal and Levy of Assessments
City Council Staff Report of July 25, 2000
Letter of Protest
F: \ Users\ PLNUliared% Bl Ds\ CDM\ COUNCIL\2000Renew \CDM2000CCRPT2.doc
Page 2
RESOLUTION NO. 20007
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE
FISCAL YEAR OF SEPTEMBER 1, 2000 TO AUGUST 31, 2001 FOR THE
CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT.
WHEREAS, on July 25, 2000 the Corona del Mar Business Improvement
District annual report was filed and approved by the City Council; and
WHEREAS, on July 25, 2000 the City Council adopted and caused to be
published a Resolution of Intention declaring the intention to levy assessments for the
Corona del Mar Business Improvement District for the fiscal year September 1, 2000 to
August 31, 2001; and
WHEREAS, a public hearing regarding the renewal of the Corona del Mar
Business Improvement District was held on August 22, 2000 with one written letter of
protest.
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
August 22, 2000 for the Corona del Mar Business Improvement District for the fiscal year
September 1, 2000 to August 31, 2001.
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 2000.
MAYOR
ATTEST:
CITY CLERK
F: \Users\PLN\S hared\B IDs \CDM\ COUNCIL \2000Renew \CDM20o0RESCONF.doc
PER H. TREBLER
A Professional Law Corporation
2121 East Coast Highway, Suite 280
Corona Del Mar, California .92625
(949) 640 -5969
(949) 759- 0788/Fax
The Honorable John Noyes, Mayor
CITY OF NEWPORT BEACH
P.O. BOX 1768
Newport Beach, CA 92658 -8915
Re: Corona del Mar BID
July 11, 2000 Council Meeting
Deal Sir:
I understand that the Corona del Mar BID is set for
consideration and re- authorization by the Council on July 11, 2000.
It would be appreciated if this letter could be circulated among
the members of the Council prior to, and its contents be considered
at, that meeting.
I attended the BID meeting on March 9, 2000 and courteously
was given the opportunity to discuss the following.
My office is located at the letterhead address (2nd
floor), just West of Avocado Avenue.
- The activities of this BID are designed to benefit
businesses which front the Highway and serve walk -in
customers all of which are located to the East of Avocado
Avenue.
The commercial activity in which I am engaged, the
practice of law, is substantially different from that of
the merchants of CDM who benefit from the BID's
activities.
- The improvements instituted by the BID so far and the
ones being considered for the immediate future have been
sited East of the building in which my office is located.
The businesses located at the Northwest corner of Avocado
and Coast Highway (immediately across the highway from my
office) have not been included in the BID and therefore
are not responsible for the District's assessments.
A precedent has been established for other BIDS (e.g.
Balboa Island) to authorize multiple classes of
assessments depending on (it is assumed) location and
enjoyment of the BID's improvements.
The Honorable John Noyes, Mayor
March 9, 2000
Page 2 of 2
It is respectfully requested that the council either:
— Exclude the businesses located in the office buildings to
the West of Avocado Avenue from the BID, or
For their occupants, establish a special class of
membership from which a substantially smaller assessment
would be due.
Thank you.
Ver y yours,
T/''//IG /�� /'� r
PER H. TREBLER
PHT:111
cc Councilman Dennis O'Neil
Don Glasgow, Chairman CDM BID
City Clerk LaVonne Harkless
•
•
Q�£WPOgT
o = o
C9ld FOPd�P
CITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC
DEVELOPMENT
PLANNING DEPARTMENT
3300 NEWPORT BOULEVARD
NEWPORT BEACH, CA 92658
Hearing Date:
Agenda Item No.:
Staff Person:
July 25, 2000
Daniel R. Trimble
(949) 644 -3230
(949) 644 -3200; FAX (949) 644 -3250 I
REPORT TO THE MAYOR AND CITY COUNCIL " o
SUBJECT: Corona del Mar Business Improvement District Renewal,
Annual Report for 1999 -2000 Fiscal Year, and Adoption of
Resolution of Intention to Levy for 2000 -2001 Fiscal Year.
SUMMARY: The Corona del Mar Business Improvement District was established
September 1, 1996. This report summarizes the District's
accomplishments during the 1999 -2000 fiscal year, its fourth year of
operation, and the proposed activities and budget for the coming
year. The Corona del Mar 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 August 22, 2000.
SUGGETED ACTION:
2.
Background
Approve Corona del Mar Business Improvement District
1999 -2000 Annual Report; and
Adopt the Resolution of Intention to Levy for 2000 -2001
Fiscal Year and set the public hearing for August 22, 2000.
The Corona del Mar Business Improvement District is nearing the end of its fourth year of
operation and requests renewal of the District for the fiscal year September 1, 2000 to August 31,
2001. The boundaries of the benefits zone remain unchanged: 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. State law requires that an annual report be prepared and a public hearing
be held each year prior to renewal of the District. A summary of accomplishments during the
1999 - 2000 fiscal year and proposed activities for the new fiscal year are provided below.
Fourth Year District Accomplishments
The Corona del Mar Business Improvement District has sponsored the following promotions,
physical improvements, and activities during the past year:
• Replacement of cracking and decomposing green asphaltic medians with bomanite paving in
the western area of the BID.
• Engineering to replace the painted medians with new raised bomanite medians.
r
• New lighting, irrigation and quarterly maintenance of decorative bedding at the Marguerite •
and Coast Highway intersection.
• Completed Phases 1 & 2 of the Corona del Mar Reforestation Program, including irrigating
and planting 100 King Palm and Hong Kong Orchid trees.
• Initiated efforts to dedicate East Coast Highway to the City of Newport Beach from CalTrans,
therefore paving the way for installation of an Area Plan.
• Began preparation of a Specific Area Plan (Vision 2004) to promote increased pedestrian
access to the village and to increase the "quality of experience" for local residents and
visitors alike. This plan will incorporate elements from the Village Deign Charette from the
previous fiscal year
• Steam cleaned the sidewalks in the District for the first time in 40 years.
• Removed 2/3 of unlicensed newsracks in the District, reducing visual blight.
• Prepared 3rd phase of reforestation plan — calling for an additional 140 trees (King Palms and
Hong Kong Orchids), of which 100 are to be installed this year.
• Hosted an Open House for all Corona del Mar BID members to present the Vision 2004
plans. .
• Mailed quarterly newsletters from the Advisory Board to all members.
• Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk
• Participated with the Corona del Mar Chamber of Commerce and the Newport Beach
Conference and Visitor's Bureau to bring visitors to Corona del Mar.
Fiscal Year District Revenues
During the 1999 - 2000 fiscal year the district collected approximately $62,900 in member
assessments with over $8,000 yet to be collected. It received $49,100 in matching funds from the
City and has spent approximately $93,524 for approved activities. It is anticipated that a
remaining balance of approximately $99,000 or less will be carried over into the 2000 - 2001
fiscal year. It is anticipated that this amount will be further reduced as additional promotions and
landscaping projects are implemented over the next two years.
Proposed Improvements, Activities and Budget
The Priorities and Budget Outline for the 2000 -2001 fiscal year, including specific goals within
each of the categories, has been submitted by the Corona del Mar Business Improvement District
Advisory Board as part of the attached Annual Report.
Page 2
The highest priorities for the upcoming fiscal year are:
® 1. Vision 2004
• Represent area business interests in governmental affairs
• Develop a Specific Area Plan for the Corona del Mar Business Improvement District
• Work with the City of Newport Beach in implementing the improvements called forth by the
Specific Area Plan
2. Physical Improvements
• Implement third phase of the reforestation program, site and plant 100 more trees along Coast
Highway
• Engineer and build new medians in place of painted medians
• Install and maintain decorative / informative banner program
• Evaluate and install when appropriate new landscaping, site furniture, trash cans, bike racks,
etc.
3. Communications / Special Events
• Maintain Memberships with Newport Chamber and Newport Conference & Visitors Bureau
• Continue old and develop new annual special events in conjunction with the Corona del Mar
® Chamber
• Quarterly newsletter
• Communicate with merchants, residential associations, and other BlDs and City Council
4. Maintenance
• Maintain lighting and seasonal color for Marguerite /Coast Highway intersection
• Maintain backflow devices as needed for tree irrigation
• Maintain sidewalks and benches as needed
Assessment Collection
The current and proposed benefit assessment is equal to the City's usual annual business license
fee as established pursuant to Chapter 5.08 of the Municipal Code. In most cases the business
license tax is comprised of $110 plus an additional amount for each employee. This rate is
consistent with what has been paid since the beginning of the Corona del Mar Business
Improvement District in 1996. 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 license regulations shall be assessed $250 per year. Persons operating one of the
following 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
Page 3
The penalty for delinquent payments will be twenty -five percent per month, provided that the
penalty amount added shall in no event exceed one hundred percent of the assessment amount
due. Assessments would be collected in one installment at the beginning of the fiscal year, and
would be pro -rated for new businesses that open during the year.
The advisory group of the Corona del Mar Business Improvement District does not expect to
raise funds in addition to the assessments levied for the upcoming year. Matching funds have
been approved by the City Council for fiscal year 2000 -2001, with the additional funds added to
the amount designated for marketing activities and physical improvements. 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
Attachments: 1999 -2000 Annual Report
Resolution of Intention to Levy 2000
Exhibit A - Boundary Map
Prepared by:
DANIEL R. TREMBLE
Associate Planner
l�
With assistance from:
CL NTON SCOTT PALMER
Cathimarie's Inc., BID Administration
Page 4
S
•
L�
REPORT TO THE MAYOR AND CITY COUNCIL
• CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR 1999 -2000 FISCAL YEAR
Overview
This is the annual report for the Corona del Mar Business Improvement District, as required by
Section 36533 of the California Streets and Highways Code, for fiscal year September 1, 1999 to
August 31, 2000.
Boundaries
The boundaries of the benefits zone remain unchanged: 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.
Proposed Activities
The improvements and activities to be provided for the fiscal year include:
1. Development and Implementation of a Specific Area Plan
2. Physical Improvements within Corona del Mar
3. Corona del Mar BID Member and Community Outreach
4. Maintenance of Existing Corona del Mar BID Improvements
• Proposed Budget
The estimated cost of providing the proposed improvements and activities in this report is
approximately $140,000. The implementation of these actions is more fully described in the
attached Priorities and Budget Outline for the 2000 -2001 fiscal year.
Assessments
Assessments shall be collected in one annual installment at the beginning of the fiscal year, and
shall be pro -rated for new businesses that open during the fiscal year. The benefit assessment
shall be equal to the City's usual annual business license tax as established pursuant to Chapter
5.08 of the Municipal Code. The penalty for delinquent payments will be twenty -five percent per
month, providing that the penalty amount 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 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
Account Status
The District's current account balance is approximately $99,000 at the end of the first ten months
. of the fiscal year. It is anticipated the balance will be approximately $107,000 or less at the fiscal
year end, August 31, 2001. Matching funds, have been approved by the City Council for fiscal
year 2000 -2001, will be added to the amount designated for marketing activities and physical
improvements.
The advisory board of the Corona del Mar Business Improvement District may raise additional
funds through various events and fund - raisers in addition to the assessments levied. At this time
they do not anticipate additional funds for the 2000 -2001 fiscal year budget.
Prior Year Accomplishments
The merchants of Corona del Mar have found their fourth year as a Business Improvement
District to be very successful and have achieved several accomplishments including:
• Replacement of cracking and decomposing green asphaltic medians with bomanite paving in
the western area of the BID.
• Engineering to replace the painted medians with new raised bomanite medians.
• New lighting, irrigation and quarterly maintenance of decorative bedding at the Marguerite
and Coast Highway intersection.
• Completed Phases 1 & 2 of the Corona del Mar Reforestation Program, including irrigating
and planting 100 King Palm and Hong Kong Orchid trees.
• Initiated efforts to dedicate East Coast Highway to the City of Newport Beach from CalTrans,
therefore paving the way for installation of an Area Plan.
• Began preparation of a Specific Area Plan (Vision 2004) to promote increased pedestrian
access to the village and to increase the "quality of experience" for local residents and
visitors alike. This plan will incorporate elements from the Village Deign Charette from the
previous fiscal year
• Steam cleaned the sidewalks in the District for the first time in 40 years.
• Removed 2/3 of unlicensed newsracks in the District, reducing visual blight. •
• Prepared 3rd phase of reforestation plan — calling for an additional 140 trees (King Palms and
Hong Kong Orchids), of which 100 are to be installed this year.
• Hosted an Open House for all Corona del Mar BID members to present the Vision 2004 plans
• Mailed quarterly newsletters from the Advisory Board to all members.
• Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk
• Participated with the Corona del Mar Chamber of Commerce and the Newport Beach
Conference and Visitor's Bureau to bring visitors to Corona del Mar.
The merchants of Corona del Mar have worked hard to promote their village and wish to express
their appreciation for the City Council's continued support of the Corona del Mar Business
Improvement District, especially the $50,000 allocated in this years budget for additional
trees/landscaping in Corona del Mar.
0
Page 2- (o
Corona del Mar
Business Improvement District
Priorities and Budget Outline
September 1, 2000 - August 31, 2001
Funds Available FY End 2000
Funds to be Collected September 2000
Anticipated Matching Funds from City
Total Available Funds
Priorities
1. Vision 2004
Percent of Budget
20%
$99,000
$80,000
$49,900
$228,900
Budget Amount
$45,780
Represent area business interests in governmental affairs ,
Develop a Specific Area Plan for the Corona del Mar Business Improvement District
Work with the City of Newport Beach in implementing the improvements called forth by
the Specific Area Plan
2. Physical Improvements
W.
$137,340
• Implement third phase of the reforestation program, site and plant 100 more trees along
Coast Highway
• Engineer and build new medians in place of painted medians
• Install and maintain decorative /informative banner program
• Evaluate and install when appropriate new landscaping, site furniture, trash cans, bike
racks, etc.
3. Communications I Special Events 10%
$22,890
• Maintain Memberships with Newport Chamber and Newport Conference & Visitors
Bureau
• Continue old and develop new annual special events in conjunction with the Corona del
Mar Chamber
• Quarterly newsletter
• Communicate with merchants, residential associations, and other BIDs and City Council
4. Maintenance
10%
$22,890
Maintain lighting and seasonal color for Marguerite /Coast Highway intersection
Maintain backflow devices as needed for tree irrigation
• Maintain sidewalks and benches as needed
Page,' I
RESOLUTION NO. 2000-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE
CORONA DEL MAR BUSINESS IMPROVEMENT DISCTRICT FOR THE
FISCAL YEAR SEPTEMBER 1, 2000 TO AUGUST 31, 2001.
WHEREAS, the Corona del Mar Business Improvement District was
established in 1997 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, on September 1, 1996 the City Council approved the
establishment of the Corona del Mar Business Improvement District; and
WHEREAS, on July 25, 2000 the Corona del Mar Business Improvement
District 1999 -2000 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 location of the District will remain the same: generally
properties along East Coast Highway from Hazel Drive to Avocado Avenue, as set forth
with greater specificity in the map attached as Exhibit A and incorporated herein.
Section 2: The City Council hereby declares the intention to levy
assessments for the Business Improvement District for the fiscal year 2000 -2001 pursuant
to the Act. 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.
0
I
C. Persons operating one of the following types of businesses as an
0 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 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. Assessments will be levied on the date the
annual District renewal becomes effective, and 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 of the assessment amount per month, providing that the penalty to be added shall
in no event exceed one hundred percent of the assessment amount due.
Section 5: The improvements and activities to be funded by the benefit
assessments shall include only the following:
Physical improvements, Maintenance, Marketing and promotions, Special events,
Representation of area business interests in governmental affairs, and Member
business communications.
Resolution No. 2000 -_
Corona del Mar Business Improvement District
Paget/
BE IT FURTHER RESOLVED, that the City Council of the City of
Newport Beach shall conduct a public hearing on August 22, 2000 at 7:00 p.m., or as 0
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 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. 2000 -_
Corona del Mar Business Improvement District
Pag
0
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 2000.
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit A - Boundary Map
0 \ MIS_ I\SYS\Users\PLMSharedBIDs \CDM\ COUNCIL \99renew\OORenew \CDMRESOI.doc
L1
Resolution No. 2000 -_
Corona del Mar Business Improvement District / A 1
Pag:. V