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HomeMy WebLinkAbout04 - 2001-2002 Balboa Village BID Annual ReportrEw�oRr CITY OF NEWPORT BEACH Hearing Date: March 13, 2001 COMMUNITY AND ECONOMIC DEVELOPMENT Agenda Item No.: 4 PLANNING DEPARTMENT Staff Person: Dan Trimble 3300 NEWPORT BOULEVARD (949) 644 -3230 NEWPORT BEACH, CA 92658 (949) 644 -3200; FAX (949) 644 -3250 REPORT TO THE MAYOR AND CITY COUNCIL PROPOSAL: Balboa Village Business Improvement District, Annual Report for 2001- 2002 Fiscal Year, District Renewal, and Adoption of Resolution of Intention to Levy for 2001 -2002 Fiscal Year SUMMARY: The Balboa Village Business Improvement District was established April 1, 1995. This report summarizes the District's accomplishments during the 2000 -2001 fiscal year, its sixth year of operation, and the proposed activities and budget for the coming year. The Balboa Village 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 March 27, 2001. SUGGESTED ACTION: 1. Approve the Balboa Village Business Improvement District 2001 Annual Report; and 2. Adopt Resolution of Intention to Levy and set public hearing for March 27, 2001. Background The Balboa Village Business Improvement District is nearing the end of its sixth year of operation and requests renewal of the District for the fiscal year April 1, 2001 to March 31, 2002. The boundaries of the benefits zone remain unchanged: generally located on the Balboa Peninsula between A Street and Coronado Street, 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 2000 - 2001 fiscal year and proposed activities for the new fiscal year are provided below. Sixth Year District Accomplishments The Balboa Village Business Improvement District has sponsored the following promotions and activities during the past year: Planning and putting on the First Annual Balboa Beach to Bay Party, a one day event with four bands, street entertainers, a surfing museum exhibition, and a car show for Antique Woody station wagons. The event was attended by several thousand people and promoted the BID area to residents and visitors. • Instituting Family Fun Days, a two -month long program of street performers and entertainers during the summer months. Mimes, magicians, bands and balloon artists performed on weekends and helped draw tourists and locals alike to the area. • Professionally landscaping the planters at the intersection of Main and Balboa. • Providing seasonal decorations and lighting to promote business during the holiday season. • Producing monthly newsletters from the Board of Directors to all members. • Maintaining membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau, and participating in a cooperative advertising program with the Bureau. • Raising over $500 for the Newport Elementary School. • Paid for insurance coverage for the association as well as preparation of the federal tax return. • Participating in design of the Balboa Village Streetscape and Pedestrian Improvement Plan as well as the Street Tree Replacement Program. The BID was also actively involved in the ongoing PROP meetings. Fiscal Year District Revenues During the 2000 - 2001 fiscal year the district collected approximately $12,132.00 in member assessments with over $6,700 yet to be collected. The BID received $9,400 in matching funds from the City and has spent approximately $15,467 for approved activities. It is anticipated that a remaining balance of approximately $20,000 or less will be carried over into the 2000 - 2001 fiscal year. Proposed Improvements, Activities and Budget The Priorities and Budget Outline for the 2001 -2002 fiscal year, including specific goals within each of the categories, has been submitted by the Balboa Village Business Improvement District Advisory Board as part of the attached Annual Report. The highest priorities for the upcoming fiscal year are: Marketing & Advertising 57% $24,900 1. Hire Marketing Consultant 2. Maintain memberships with NB Chamber of Commerce and NB Conference and Visitors Bureau 3. Print advertising 4. Web Site 5. Direct -mail Page 2 6. Special events a. Whale Festival b. Concerts in the Park c. Family Fun Days Again d. Photo Contest e. Car Show f Chili Cook off g. Downtown Decoration h. Holiday Party on the Flyer Physical Improvements 18% 1. Seasonal Landscaping and Landscape Maintenance Outreach Programs 14% 1. Monthly newsletter 2. Meeting notices $8,000 $ 6,000 3. Maintain the open communication with the residents, other B1Ds and City Council 4. Construction mitigation campaign Administration 6% $ 2,500 1. Insurance 2. Accounting 3. Other Special Projects 5% $ 2,000 1. Historic walk program 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 $114 plus an additional amount for each employee. This rate is consistent with what has been paid since the beginning of the Balboa Village Business Improvement District in 1995. 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 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. Page 3 The advisory group of the Balboa Village Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. Matching funds are anticipated to be approved by the City Council for fiscal year 2001 -2002, 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 Prepared by: DANIEL TRIMBLE Associate Planner With assistance from: CLINTON SCOTT PALMER Cathimaries, Inc., BID Administrator Attachments: Resolution of Intention 01- Exhibit A (Boundary Map) Annual Report and Budget by BID Advisory Board F. I Users IPLMSharedl BlDsl BalboavillagelCOUNClL12001 renew1ccrpr2001 -l.doc Page 4 ri—T�i With assistance from: CLINTON SCOTT PALMER Cathimaries, Inc., BID Administrator Attachments: Resolution of Intention 01- Exhibit A (Boundary Map) Annual Report and Budget by BID Advisory Board F. I Users IPLMSharedl BlDsl BalboavillagelCOUNClL12001 renew1ccrpr2001 -l.doc Page 4 RESOLUTION NO.2001- 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 BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF APRIL 1, 2001 TO MARCH 31, 2002. WHEREAS, the Balboa Village Business Improvement District was established in 1995 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 2000 -2001 fiscal year 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 assessments 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 Resolution No. 2001 - Balboa Village Business Improvement District 2 provided for 2001, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares the intention to renew the Business Improvement District for the fiscal year April 1, 2001 to March 31, 2002 pursuant to the Act. Section 3: The membership of the District will remain the same. Section 4: The City Council hereby states its intention to levy and impose and order the collection of a benefit assessment upon persons conducting business in the District. 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. 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 District shall be 100 percent of the 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 Resolution No. 2001 - Balboa Village Business Improvement District 3 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 2. Physical improvements 3. Communications and Outreach Program 4. Administration Section 8: The location of the District will remain the same: generally located on the Balboa Peninsula between A Street and Coronado Street, as set forth with greater specificity in the map attached as Exhibit A. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on March 27, 2001 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 Resolution No. 2001 - Balboa Village Business Improvement District Fl activities or benefit zones shall be eliminated. Further information regarding the proposed Business Improvement District renewal and expansion 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 held on the day of 2001. MAYOR ATTEST: CITY CLERK F: I UsersIPLNISharedl BIDsI BalboavillagelCOUNCIL 11001 renewlB I' Resolution100 Ldoc Resolution No. 2001 -_ Balboa Village Business Improvement District Balboa Village Business Improvement District CY Newport Bay ""/6//C r6 tot • • i Pacific Ocean .3 r` Park \\ \ .m • � � � - : Park p�'bl /c e each Balboa Pier 11331 Business Improvement District Boundary Exhibit A Balboa Village Business Improvement District FY 2000 -2001 Annual Report And FY 2001 -2002 Proposed Budget Page 1 ANNUAL REPORT TO THE MAYOR AND CITY COUNCIL BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2000 -2001 FISCAL YEAR Overview This is the annual report for the Balboa Village Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for fiscal year April 1, 2000 to March 31, 2001. Boundaries The boundaries of the benefit zone remain the same: generally located on the Balboa Peninsula between A Street and Coronado Street, 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. Marketing, advertising, and promotion of Balboa Village 2. Physical Improvements within Balboa Village 3. Balboa Village BID Member and Community Outreach 4. Balboa Village BID Tax Preparation and Insurance Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $43,400. 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 Page 2 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 $20,000 at the end of the first ten months of the fiscal year. It is anticipated the balance will be approximately $20,000 or less at the fiscal year end, March 31, 2001. Matching funds, anticipated to be approved by the City Council for fiscal year 2000 -2001, would be added to the amount designated for physical improvements. Prior Year Accomplishments The advisory board of the Balboa Village 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. The merchants of Balboa Village have found their sixth year as a Business Improvement District to be very successful and have achieved several accomplishments including: * Planning and putting on the First Annual Balboa Beach to Bay Party, a one day event with four bands, street entertainers, a surfing museum exhibition and a car show for Antique Woody station wagons. The event was attended by several thousand people and promoted the BID area to residents and locals. * Instituting Family Fun Days, a two month long program of street performers and entertainers during the summer months. Mimes, magicians, bands and balloon artists performed on weekends and helped draw tourists and locals alike to the area. *Professionally landscaping the planters at the intersection of Main and Balboa. * Providing seasonal decorations and lighting to promote business during the holiday season * Producing monthly newsletters from the Board of Directors to all Page 3 members. * Maintaining membership with the Newport Harbor Chamber of Commerce and the Newport Beach Conference and Visitors Bureau, and participating in a cooperative advertising program with the Bureau. *Raising over $500 for the Newport Elementary School * Paid for insurance coverage for the association as well as preparation of the federal tax return * Participating in design of the Balboa and Main Street Intersection, and the Balboa Streetscape Study. The BID was also actively involved in the ongoing PROP meetings. The merchants of Balboa have worked hard to promote and maintain their village and wish to express their appreciation for the City Council's continued support of the Balboa Village Business Improvement District.