HomeMy WebLinkAbout04 - Restaurant Association BID�ewvoq,
CITY OF NEWPORT BEACH
Hearing Date:
November 14, 2000
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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.
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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
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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.
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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
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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
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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
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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.
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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.
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