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HomeMy WebLinkAbout04 - Restaurant Association BID�ewvoq, CITY OF NEWPORT BEACH Hearing Date: November 14, 2000 r 3 .I� COMMUNITYAND ECONOMIC DEVELOPMENT Agenda Item No.: 4 PLANNING DEPARTMENT Staff Person: Dan Trimble 3300 NEWPORT BOULEVARD (949) 644 -3230 NEWPORT BEACH, CA 92658 (714) 644 -3200; FAX (714) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Restaurant Association Business Improvement District 2000 Annual Report and District Renewal SUMMARY: The Restaurant Association Business Improvement District was established January 1, 1996. This report summarizes the District's accomplishments during 2000, its fifth year of operation, and the proposed activities and budget for the coming year. The Restaurant Association 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 12, 2000. ACTION: 1. Approve Restaurant Association Business Improvement District 2000 Annual Report; 2. Adopt the Resolution of Intention to Levy and set the public hearing for December 12, 2000. Overview The Restaurant Association Business Improvement District, nearing the end of its fifth year of operation, requests renewal of the District for the fiscal year January 1 to December 31, 2001. The District includes all Restaurants within the City limits of the City of Newport Beach. 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 2000 and proposed activities for 2001 are provided below. The District's 2001 activities are proposed to remain the same as in 2000. Fifth Year District Accomplishments The Restaurant Association Business Improvement District has sponsored the following promotions and activities during the past year: • Distributed Dining Guides through the Newport Beach Conference and Visitors Bureau, hotels and convention center display racks • Maintained a toll free phone number for referrals to participating restaurants • Maintained the Newport Beach Dining Website • Placed a request for competitive proposal for the creation of an association marketing plan • Selected California Marketing Concepts to create and implement the marketing plan • Created a new logo for the Association • Placed a booth at the Toshiba Golf Classic • Placed a booth at the Newport Jazz Festival • Promoted participation in the Irrelevant Week Kickoff Party • Sponsored reduced cost Serve Safe and ABC seminars • Developed and researched a comprehensive member listing and database • Mailed newsletters from the Advisory Board to all members. • Promoted the Taste of Newport to members • Participated with the Newport Beach Chamber of Commerce and the Newport Beach Conference and Visitor's Bureau. Fiscal Year District Revenues The district collected approximately $45,000 and has spent approximately $29,000 for approved activities. It is anticipated that a remaining balance of approximately $75,000 will be carried over into the 2000 fiscal year budget. The District's current account balance is approximately $96,259 at the end of the first ten months of the year. It is anticipated that the balance will be approximately $75,000 or less at the year -end, December 31, 2000, and will be carried over to the next fiscal year. Although this is a large balance to carry over, the Board will be launching a new coordinated marketing effort that is currently being developed by a professional marketing consultant retained by the BID. Proposed Activities and Budget The activities proposed for the next year include implementation of the approved marketing plan, including printing and distributing new dining guides: reconfiguring the Association Website; and implementing a greater membership participation program. Memberships in the Newport Beach Chamber and the Newport Beach Visitor's and Conference Bureau will be maintained. Further opportunities to promote dining in Newport Beach will be explored and presented to the membership. Assessment Collection Assessments shall be collected in one annual installment at the beginning of the year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00 per year. For establishments with greater than ten (10) employees, the benefit assessment shall be one and one half (150%) of 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. The Restaurant Association Business Improvement District appreciates the City Council's continued support. Page 2 Submitted by: SHARON Z. WOOD Assistant City Manager Prepared by: DANIEL TRIMBLE Associate Planner Ji�Y With assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Draft Resolution of Intention 2000 - Annual Report F..1 UsersWLMSharedlB ]DsViestaurantslCOUNCIL12001 renewVtES7CCRPT - -I.do Page 3 RESOLUTION NO. 2000- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH APPROVING THE ANNUAL REPORT AND STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISCTRICT FOR THE FISCAL YEAR JANUARY 1, 2001 TO DECEMBER 31, 2001. WHEREAS, the Restaurant Association 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 Fiscal and Calendar Year 2000, which is on file in the Office of the City Clerk; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the Business Improvement District for the next fiscal year; and WHEREAS, the Business Improvement District Advisory Board has not recommended the basis for levying assessment be modified. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Annual Report filed by the Advisory Board is hereby approved. The Annual Report contains a description of improvements and activities to be provided for 2001, the area boundaries, and the annual assessment within the District. q 2 Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the fiscal year January 1, 2001 to December 31, 2001 pursuant to the Act. Section 3: The membership of the District will remain the same and any restaurant within the corporate limits of the City of Newport Beach shall be included within the District. Section 4: The City Council hereby levies and imposes and orders the collection of a benefit assessment upon persons conducting business in the District. Such benefit assessment shall be as follows: For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. For establishments with greater than ten (10) employees, the benefit assessment shall be equal to the amount of the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code Section 5: The benefit assessments shall be collected by the City 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 6: 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 7: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising and public relations. Resolution No. 2000 - Restaurant Association Business Improvement District a 3 2. Brochure development and distribution. 3. Promotion of public events. 4. The general promotion of restaurant trade activities. 5. Educational and training classes for members 6. Memberships in various organizations deemed to promote dining in Newport Beach BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 12, 2000 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 establishment 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. Resolution No. 2000 - Restaurant Association Business Improvement District 6 4 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 -3230. 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 and thereon held on the day of 2000. MAYOR ATTEST: CITY CLERK F: I Use rsIPLNlShare dlRIDslRestauranlsICOUNCIL12001 reneivIRESTRESOINT2001.dx Resolution No. 2000 - Restaurant Association Business Improvement District RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2000 YEAR Overview This is the annual report for the Restaurant Association Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for the year 2000. Boundaries The boundaries of the benefits zone remain unchanged and any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Proposed Activities The improvements and activities to be provided for the year include: 1. Implementation of a Comprehensive Marketing Plan 2. Restaurant Association BID Member and Community Outreach 3. Membership in the Newport Harbor Chamber of Commerce and Newport Beach Conference and Visitor's Bureau Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $75,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2001 year. Assessments Assessments shall be collected in one annual installment at the beginning of the year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. For establishments with greater than ten (10) employees, the benefit assessment shall be equal to the amount of 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. Account Status The District's current account balance is approximately $96,259 at the end of the first ten months of the year. It is anticipated the balance will be approximately $75,000 or less at the year -end, December 31, 2001, and will be carried over to the next fiscal year. Matching funds, if approved by the City Council for year 2001, will be added to the amount designated for marketing activities. The advisory board of the Restaurant Association 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 2001 year budget. Prior Year Accomplishments The merchants of Restaurant Association have found their fifth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Distributed Dining Guides through the Conference and Visitors Bureau, hotels and convention center display racks • Maintained a toll free phone number for referrals to participating restaurants • Maintained the Newport Beach Dining Website • Placed a request for competitive proposal for the creation of an association marketing plan • Selected California Marketing Concepts to create and implement the marketing plan • Created a new logo for the Association • Placed a booth at the Toshiba Golf Classic • Placed a booth at the Newport Jazz Festival • Promoted participation in the Irrelevant Week Kickoff Party • Sponsored reduced cost Serve Safe and ABC seminars • Developed and researched a comprehensive member listing and database • Mailed newsletters from the Advisory Board to all members. • Promoted the Taste of Newport to members • Participated with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitor's Bureau. The merchants of Restaurant Association have worked hard to promote their member restaurants and the dining experience in Newport Beach as a whole. They wish to express their appreciation for the City Council's continued support of the Restaurant Association Business Improvement District, especially the $32,400 of matching funds provided by the City. Page 2 Restaurant Association Business Improvement District Priorities and Budget Outline January 1, 2001- December 31, 2001 Funds Available FY End 2000 $75,000 Funds to be Collected January 2001 $50,000 Anticipated Matching Funds from City $32,200 Total Available Funds $157,200 Priorities Percent of Budget Budget Amount 1. Marketing Plan Administration 8% $12,000 • Implement the current Marketing Plan • Identify and present new marketing opportunities to the Board • Supervise printing and other Plan efforts 2. Media Buys 10% $15,700 • Electronic Media— Cable TV • Print Media — Anaheim Visitor Guide and Newport Beach Visitor Guide • Direct Mail Advertising to Local Residents 3. Collateral Development 17% • Use new Logo in Collateral Development • New letterhead, Stationary and Banners • Certified Folder Display • Coast Magazine Drop 4. Communications 6% • Website Development • Newsletter Development, Printing and Postage • Database Development and Update 5. Memberships 4% • Newport Beach Visitor and Convention Bureau • Newport Beach Chamber of Commerce • California Conference on Tourism 6. Undesignated Projects and Promotions 55% • A • B • C $27,500 $9,000 $6,000 $87,000* *Note that the Board anticipates that a large portion of the undesignated balanced will be used for the new marketing effort for fiscal year 2001. Page 3 /0