HomeMy WebLinkAbout22 - Corona del Mar BID RenewalCITY OF NEWPORT BEACH
COMMUNITY AND ECONOMIC Hearing Date: August 13, 2002
DEVELOPMENT
3300 NEWPORT BOULEVARD Agenda Item No.: 22
NEWPORT BEACH, CA 92658 Staff Person: George A. Berger, AICP
(949) 644 -3200; FAX (949) 644 -3229 (949) 644 -3207
REPORT TO THE MAYOR AND CITY COUNCIL
PROPOSAL: Corona del Mar Business Improvement District Renewal
Public Hearing and levying of Assessments for 2002 -2003 Fiscal Year
SUMMARY: Conduct public hearing for renewal of the Corona del Mar Business
Improvement District for the 2002 -2003 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.
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b. If protests represent 50 percent or more of the total assessment
abandon the proceedings to renew the District.
Background
On July 23, 2002 the City Council held a public meeting, approved the Corona del Mar Business
Improvement District 2001 -2002 Annual Report and adopted a Resolution of Intention to levy and
collect assessments for the District for the 2002 -2003 fiscal year. Details regarding the proposed
renewal of the District and annual report are provided in the attached July 23, 2002 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, no letter of opposition to the District has 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.
CDM02- 03CCRPT2.doc
Advisory Board
The Corona del Mar Business Improvement District Advisory Board elections have recently been
completed for the new fiscal year. There would normally be nine members of the Advisory Board;
however one, Jim Walker, has recently resigned, and the Board is in the process of appointing a
successor to fulfill the remainder of his term. The nine Board members serving for the 2002 -2003
FY will be: John Blom, Keith Dawson, Sharon Dawson, Don Glasgow, B.J. Johnson, Linda
Leonhard, Wade Roberts, Mark Schulein, and Lori Trottier. The Board will elect their officers for
the upcoming year at the first meeting of the new fiscal year. The BID Advisory Board members
serve for staggered two -year terms.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
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Prepared by:
GEORGE A. BERGER, AICP
Community & Economic Development
Program Manager
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With assistance from:
CLINTON SCOTT PLAMER
Cathimarie's Inc., BID Administration
Attachments: ResolutionNo. 2002 — _ Confirming Renewal and Levy of Assessments
City Council Staff Report of July 23, 2002
CDM02 -03CCRPr2.doc
RESOLUTION NO. 2002-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE
FISCAL YEAR OF SEPTEMBER 1, 2002 TO AUGUST 31, 2003 FOR THE
CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT.
WHEREAS, on July 23, 2002 the Corona del Mar Business Improvement
District annual report was filed and approved by the City Council; and
WHEREAS, on July 23, 2002 the City Council adopted and 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, 2002 to August 31,
2003; and
WHEREAS, a public hearing regarding the renewal of the Corona del Mar
Business Improvement District was held on August 13, 2002 without a protest of
majority.
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 13, 2002 for the Corona del Mar Business Improvement District for the fiscal
year September 1, 2002 to August 31, 2003.
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 2002.
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ATTEST:
CITY CLERK
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CITY OF NEWPORT BEACH
o��EwvoR @ COMMUNITY AND ECONOMIC Hearing Date: July 23, 2002
DEVELOPMENT
` PLANNING DEPARTMENT 5
� Agenda Item No.:
3300 NEWPORT BOULEVARD Staff Person: George A. Berger, AICP
NEWPORT BEACH, CA 92658 (949) 644 -3207
(949) 6443200; FAX (949) 6443229
REPORT TO THE MAYOR AND CITY COUNCIL
SUBJECT: Corona del Mar Business Improvement District Renewal:
Annual Report for 2001 -2002 Fiscal Year; and Adoption of
Resolution of Intention to Levy for 2002 -2003 Fiscal Year.
SUMMARY: The Corona del Mar Business Improvement District was established
September 1, 1996. This report summarizes the District's
accomplishments during the 2001 -2002 fiscal year—its sixth 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 13, 2002.
SUGGESTED ACTION:
2.
Background
Approve Corona del Mar Business Improvement District
2001 -2002 Annual Report; and
Adopt the Resolution of Intention to Levy for 2002 -2003
Fiscal Year and set the public hearing for August 13, 2002.
The Corona del Mar Business Improvement District is nearing the end of its sixth year of
operation and requests renewal of the District for the fiscal year September 1, 2002 to August 31,
2003. The boundaries of the benefits zone have been reviewed by the Board, and are
recommended to 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 2001 -2002 fiscal year and
proposed activities for the new fiscal year are provided below.
Sixth Year District Accomplishments
The Corona del Mar Business Improvement District sponsored the following promotions and
activities during the past year:
With the cooperation of the City's General Services Department, the BID installed new
metal pedestrian benches and trash receptacles at various locations throughout the BID area,
replacing worn and outdated concrete and wood benches and receptacles. At the time of
this report, the BID also is in the process of receiving and installing four new bus shelters
throughout the village, with the Public Works and General Services departments helping to
secure the necessary City and CalTrans permits. The BID contributed $75,000 to this
project, with a matching amount provided by City funds;
Maintained and updated the Corona del Mar BID website, www.cdmvillage.com, to educate
the public about the Vision 2004 plan and distribute information on current events and
administration of the BID;
Moved forward with the Vision 2004 Plan by securing the State's agreement to relinquish
the portion of Coast Highway within Corona del Mar from CalTrans jurisdiction to the
City's. This was achieved by working closely with the City Council, City staff, and a
legislative consultant paid for by the BID. Presently, agreements on proper boundaries and
financial compensation are underway, prior to acceptance by the City;
• Assisted the Corona del Mar Chamber of Commerce in the publishing of a four -color
merchant directory for all BID members in Corona del Mar;
• In cooperation with the Public Works Department, continued engineering studies to replace
the painted medians with new, raised Bomanite medians;
• Provided quarterly maintenance of decorative bedding at the Marguerite / Coast Highway
intersection with replanting as needed;
• Mailed monthly newsletters from the Advisory Board to all members in conjunction with
the Corona del Mar Chamber of Commerce newsletter;
• 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 2001 -2002 fiscal year the District started with a balance of $123,500. It collected
approximately $66,000 in member assessments with over $20,000 yet to be collected. The BID
received $54,534 in matching funds from the City and has spent approximately $175,400 this FY
for approved activities. It is anticipated that a remaining balance of approximately $69,000 or
somewhat less will be carried over into the 2002 -2003 Fiscal Year.
Proposed Improvements, Activities and Budget
The FY2002 -2003 Priorities and Budget Outline, including specific goals for each category, is
submitted by the BID Advisory Board as part of the attached Annual Report. The highest priorities
for the upcoming fiscal year are:
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• 1. BID Administration/ Vision 2004:
• Continue representation in Sacramento to secure CalTrans operating agreement
• Develop further funding options to implement Vision 2004 Plan
• Continue to present the Vision 2004 Plan to educate concerned parties about improvements
• Work with the City of Newport Beach in implementing the improvements called forth by
the Vision 2004 Plan
2. Action Committee:
• Work closely with City staff to develop improvements called for by the Vision 2004 Plan.
When funding has been appropriated for Vision 2004, and when improvements have begun,
the CdM BID will look to share costs when possible with the City from BID funds
• Engineer and build new medians to replace painted medians
• Contribute funds to the Corona del Mar Chamber for the Christmas Walk
• Install holiday decorations throughout the BID during the holiday season
3. Marketing
•
Maintain Memberships with Newport Harbor Chamber of Commerce
•
Develop new annual special events in conjunction with the CdM Chamber of Commerce
•
Monthly newsletter published in conjunction with the CdM Chamber of Commerce
•
Maintain and update the www .cdmvillage.comwebsite
•
Continue with Marketing Advisor Program
. •
Develop alternative business promotion and marketing programs
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
•
Maintain all tree wells and tree health for 200 palm and orchid trees within the District
Assessment Collection
The current and proposed BID benefit assessment per business is equal to one and one -half (1 -1/2)
the City's annual business license fee, pursuant to Chapter 5.08 of the Newport Beach Municipal
Code. In most cases the business license tax is comprised of $120 plus an additional amount for
each employee. This rate has been consistent since the establishment of the Corona del Mar
Business Improvement District in 1996. Banks and financial institutions exempt from City
business license regulations are assessed $500 per year. Insurance agencies exempt from City
license regulations are assessed $250 per year. Persons operating one of the following businesses
as an independent contractor in an establishment owned by another person are exempt from this
assessment:
1. Hair stylists
2. Nail technicians
3. Real estate agents
The penalty for delinquent payments is 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 are collected in a single installment at the beginning of the fiscal year, and are pro-
rated for new businesses opening during the year.
The Advisory Board of the Corona del Mar Business Improvement District does not expect to raise
funds in addition to the assessments levied for the upcoming year. It is anticipated that matching
funds will be approved by the City Council for fiscal year 2002 -2003, with 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 California law.
Submitted by:
SHARON Z. WOOD
Assistant City Manager
Prepared by:
GEORGE A. BERGER, AICP
Senior Planner
With assistance from:
CLINTON SCOTT PALMER
Cathimarie'sInc., BID Administration
Attachments: Exhibit A: CdM BID Boundary Map
Exhibit B: FY O1 -02 Annual Report (by BID Advisory Board)
Exhibit C: FY 02 -03 Priorities and Budget by (BID Advisory Board)
Exhibit D: Resolution of Intention 02-
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EXHIBIT B
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CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR 2001 -2002 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,
2001 to August 31, 2002.
Boundaries The boundaries of the benefit 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. Marketing, advertising, and promotion of CORONA DEL MAR
2. Physical Improvements within CORONA DEL MAR
3. CORONA DEL MAR BID Member and Community Outreach
4. CORONA DEL MAR BID Tax Preparation and Insurance
Proposed Budget The estimated cost of providing the proposed improvements and
activities in this report is approximately $111,264. The
implementation of these actions is more fully described in the
attached Priorities and Budget Outline for the 2002 -2003 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 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.
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
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Account Status:
assessment:
1. Hairstylists
2. Nail technicians
3. Real estate agents
During the 2001 -2002 fiscal year the district collected
approximately $66,600 in assessments from members. Its account
balance of the beginning of the year was $123,500. It received
$54,534 in matching funds from the City for available operating
revenue of $244,034. The BID has spent approximately $175,400
for approved activities.
The District's current account balance is approximately $69,000 at
the end of the first eleven months of the fiscal year. It is
anticipated the balance will be approximately $67,000 or less at the
fiscal year end, August 31, 2002. Matching funds, anticipated to
be approved by the City Council for fiscal year 2002 -2003, would
be added to the amount designated for marketing efforts.
iPrior Year Accomplishments:
The merchants of CORONA DEL MAR have found their sixth
year as a Business Improvement District to be very successful and
have achieved several accomplishments including:
*With the cooperation of the City's Public Works and General
Services departments, the BID installed new metal benches and
trash receptacles at various locations throughout the area, replacing
worn and outdated concrete and wood benches. At the time of this
report, the BID also is in the process of installing four new bus
shelters throughout the village, with the Public Works Department
helping in securing the necessary permits from CalTrans and the
City itself. The BID contributed $75,000 to this project, with the
remainder of the funds generously coming from the City.
*Maintained and updated the Corona del Mar BID website,
www.edmvillage.com, to educate the public about the Vision 2004
plan and distribute information on current events and
administration of the BID.
. * Moved forward with the Vision 2004 Plan by securing the State's
agreement to relinquish the portion of Coast Highway within
Corona del Mar from CalTrans jurisdiction to the City's. This was
achieved by working closely with the City Council, City staff, and
a legislative consultant paid for by the BID. Presently, agreements
on proper boundaries and financial compensation are underway,
prior to acceptance by the City.
*Assisted the Corona del Mar Chamber of Commerce in
publishing a four -color merchant directory for all BID members in
Corona del Mar.
* Continued engineering studies to replace the painted medians
with new, raised Bomanite medians.
* Quarterly maintenance of decorative bedding at the Marguerite /
Coast Highway intersection with replanting as needed.
*Mailed monthly newsletters from the Advisory Board to all
members in conjunction with the Corona del Mar Chamber of
Commerce newsletter.
* 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 each 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.
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EXHIBIT C
Corona del Mar
Business Improvement District
Priorities and Budget Outline
September 1, 2002- August 31, 2003
Funds Available FY End 2001 69,000
Funds to be Collected September 2001 80,000
Matching Funds from City 53,500
Total Available Funds 202,500
Priorities Budget Amount Total
1. BID Administration / Vision 2004 14% $ 15,400
*Continue representation in Sacramento to secure Caltrans operating agreement
*Develop further funding options to implement Vision 2004 Plan
*Continue to present the Vision 2004 Plan to educate concerned parties about
improvements
*Work with the City of Newport Beach in implementing the improvements called
forth by the Vision 2004 Plan
2. Action Committee 47% $53,000
*Work closely with the City Staff in developing improvements called for by the
Vision 2004 Plan. When funding has been appropriated for Vision 2004, and
when improvements have begun, the CdM BID will look to share costs when
possible with the City from BID funds.
* Engineer and build new medians in place of painted medians
*Install decorative holiday decorations and banners
*Contribute funds to the Corona del Mar Chamber for the Christmas Walk
*Install holiday decorations throughout the BID during the holiday season.
3. Marketing 29% $31,750
*Maintain Memberships with Newport Chamber
* Develop new annual special events in conjunction with the Corona del Mar
Chamber
• Monthly newsletter published in conjunction with the Chamber of Commerce
• Maintain and update the cdmvillage.com website
• Continue with Marketing Advisor Program
*Develop alternative business promotion and marketing programs
4. Maintenance 10% $11,114
*Maintain lighting and seasonal color for Marguerite /Coast Highway intersection
*Maintain backflow devices as needed for tree irrigation
*Maintain sidewalks and benches as needed
*Maintain all tree wells and tree health for 200 palm and orchid trees within the
0 District
EXHIBIT D 0
RESOLUTION NO. 2002-
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 DISTRICT FOR THE
FISCAL YEAR OF SEPTEMBER 1, 2002 TO AUGUST 31, 2003.
WHEREAS, the Corona del Mar 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 2001 -2002 fiscal
year which is on file in the Office of the City Clerk; and
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows:
Section 1: The City Council hereby declares the intention to levy assessments for the
Corona del Mar Business Improvement District for the fiscal year September 1, 2002 to
August 31, 2003 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;
Resolution No. 2002 -
Corona del Mar Business Improvement District
Page 1
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 150 percent of the
annual business license tax as established pursuant to Chapter 5.08 of the Municipal
Code.
Section 2: 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 3: The City shall collect benefit assessments 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 improvements and activities to be funded by the benefit assessments shall
include only the following:
1. Marketing, advertising, and special events
Resolution No. 2002 -_
Corona del Mar Business Improvement District
Page 2
2. Physical improvements & maintenance
3. Communications and Outreach Program
4. Representation of area business interests in governmental affairs
5. Administration
Section 5: The location of the District will remain the same: 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.
BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall
conduct a public hearing on August 13, 2002 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 that 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 famishing 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.
Resolution No. 2002 -
Corona del Mar Business Improvement District
Page 3
. 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.
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 2002.
• ATTEST:
MAYOR
CITY CLERK
ATTACHMENT: Exhibit A (Boundary Map)
Resolution No. 2002 -
Corona del Mar Business Improvement District
Page 4
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