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HomeMy WebLinkAbout17 - Restaurant Association Business Improvement DistrictCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 December 17, 2002 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel R. Trimble, Program Administrator 949/644 -3230. mailto:dtrimble(2`,city.newport- beach.ca.us SUBJECT: Restaurant Association Business Improvement District: Conduct public hearing and adopt a Resolution for renewal of the Restaurant Association Business Improvement District for Fiscal Year 2003. ISSUE: Annual renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Hold public hearing regarding the renewal of the Restaurant Association Business Improvement District; and 2. a. If protests represent less than 50 percent of the total assessment amount, adopt Resolution No. 2002 - confirming the Restaurant Association Business Improvement District Annual Report and levying the BID assessment for the 2003 fiscal year. b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the District. DISCUSSION: Background: On November 12, 2002 the City Council held a public meeting, approved the Restaurant Association Business Improvement District 2002 Annual Report and adopted a Resolution of Intention to levy and collect assessments for the District for the 2003 fiscal year. Details regarding the proposed renewal of the District and annual report are provided in the attached November 12, 2002 staff report. 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 letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests at the City Council meeting. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: Fundinq Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: Imo. /. F! /lli / Submitted by: 7i� J�1��� DANIEL R. TRIMBLE C & ED Program Administrator With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: City Council Staff Report of November 12, 2002 Resolution No. 2002- Page 2 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 JANUARY 1, 2003 TO DECEMBER 31, 2003 FOR THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT. WHEREAS, the Advisory Board has prepared an Annual Report for the 2002 fiscal year which is on file in the office of the City Clerk; and WHEREAS, on November 12, 2002 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the Restaurant Association Business Improvement District for the fiscal year January 1, 2002 to December 31, 2003; and WHEREAS, a public hearing regarding the renewal of the Restaurant Association Business Improvement District was held on December 12, 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 November 12, 2002 for the Restaurant Association Business Improvement District for the fiscal year January 1, 2003 to December 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. lu. M. ATTEST: CITY CLERK Resolution No. 2002 - Restaurant Association Business Improvement District CITY OF NEWPORT BEACH • CITY COUNCIL STAFF REPORT Agenda Item Item No. $ November 12, 2002 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Daniel R. Trimble, Program Administrator 949/644 -3230. drtrimble @city.newport- beach.ca.us SUBJECT: Restaurant Association Business Improvement District Renewal: Annual Report for Fiscal Year 2002, and Adoption of Resolution of Intention to Levy for Fiscal Year 2003. ISSUE: • Annual Renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Approve Restaurant Association Business Improvement District 2002 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for December 10, 2002. DISCUSSION: Background: The Restaurant Association Business Improvement District is nearing the end of its seventh year of operation and requests renewal of the District for the fiscal year January 1 to December 31, 2003. This report summarizes the District's accomplishments during 2002, its seventh 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 10, 2002. The . District includes any restaurant doing business within the boundaries of the City of Newport Beach. California law requires that an annual report be prepared and a public Restaurant Association BID Renewal Hearing 1 November 12, 2002 Page 2 hearing be held each year prior to renewal of the District. A summary of • accomplishments during 2002 and proposed activities for 2003 are provided below. The District's 2003 activities are proposed to remain the same as in 2002. Seventh Year District Accomplishments: The Restaurant Association Business Improvement District has sponsored the following promotions and activities during the past year: • Retained California Marketing Concepts to create and execute Marketing Plan & Budget • Expanded aggressive print media advertising campaign in targeted local and tourism related publications to promote overall dinning in Newport Beach, NBRA website, dining guide and phone reservation system. • Re- designed and updated NBRA Dining Guide; produced 100,000 copies • Distributed Dining Guides through: Certified Folder Display, Conference & Visitors Bureaus, hotels, convention center display racks, restaurants, internet requests, direct mail, Coast Magazine, ad campaigns and special events. • Maintained monthly updates to NBRA Website: www.newportbeachdininq.com • Maintained an 877 number for referrals to all Newport Beach restaurants • Updated Toll -Free Dining Reservation System for NBRA • Continued to develop NBRA identity implementing new ad campaign, logo, marketing collateral, website and photos. • Distributed NBRA Membership Informational Brochure & Decal to members • Mailed NBRA newsletters from the NBRA Advisory Board to all members. • Developed and updated a new comprehensive member listing and database • Active involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau and the Anaheim Visitors & Convention Bureau. • Active involvement in the California and National Restaurant Association • Participated in NBCVB Cooperative Marketing Programs • Participated in State of California Tourism Cooperative Marketing Programs • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to members and the public. • Sponsored the Newport Beach Film Festival & organized restaurant participation • Promoted participation in the Irrelevant Week Kickoff Party • Participated in American Express Restaurant Marketing Promotions • Implemented charitable donations to feed the homeless and OC Sheriffs Department • Sponsored reduced cost Serve Safe and ABC seminars • On -going support of the Green Restaurant Association • Initiated NBRA annual luncheon membership networking meeting. Fiscal Year District Revenues: During 2002 the district collected approximately $51,100 in member assessments. The District also received $36,000 in matching funds from the City. The District spent . • 0 Restaurant Association BID Renewal Hearing 1 November 12, 2002 Page 3 approximately $75,300 for approved activities. It is anticipated that a remaining balance of approximately $50,000 will be carried over into the 2003 fiscal year budget. Proposed Activities and Budget: The activities proposed for the next year include marketing, advertising, public relations, and public improvements and maintenance to benefit Restaurant Association businesses. The estimated budget for these activities is approximately $110,000. The Restaurant Association Business Improvement District appreciates the City Council's continued support. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: None Required. Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Alternatives: The City Council may choose not to adopt the Resolution of Intention to Renew the Business Improvement District for Fiscal Year 2003. Prepared by: !e- SHARON V Assistant Citypbnager Submitted by: DANIEL R. TRIMBLE C & ED Program Administrator With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A — FY 2001 Annual Report and 2003 Priorities & Budget Outline Exhibit B — Resolution of Intention to Levy 2002- EXHIBIT A ft RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT 2002 ANNUAL REPORT • 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 calendar year 2002. This -report covers the District's accomplishments for the previous fiscal year (January 1, 2002 to December 31, 2002) and the proposed activities for the 2003 fiscal year. The boundaries of the benefits zone remain unchanged: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. The improvements and activities to be provided for the year include: 1. Implementation of new FY 2003 Comprehensive Marketing Plan of Work & Budget 2. Marketing and Advertising campaigns to promote NBRA programs 3. Restaurant Association BID Member and Community Outreach 4. Active Membership in the Newport Beach and Anaheim Conference and Visitors Bureau, Newport Harbor Area Chamber of Commerce, California and National Restaurant Associations. The estimated cost of providing the proposed improvements and activities in this report is approximately $110,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2003 year. 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 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 District's current account balance is approximately $62,500 at the end of the first ten months of the year. It is anticipated the balance will be approximately $50,000 or less at the year -end, December 31, 2002, and will be carried over to the next fiscal year. Matching funds, if approved by the City Council for year 2003, 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 2003 fiscal year budget. • • The merchants of Restaurant Association have found their seventh year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Retained California Marketing Concepts to create and execute Marketing Plan & Budget • Expanded aggressive print media advertising campaign in targeted local and tourism related publications to promote overall dinning in Newport Beach, NBRA website, dining guide and phone reservation system. • Re- designed and updated NBRA Dining Guide; produced 100,000 copies • Distributed Dining Guides through: Certified Folder Display, Conference & Visitors Bureaus, hotels, convention center display racks, restaurants, internet requests, direct mail, Coast Magazine, ad campaigns and special events. • Maintained monthly updates to NBRA Website: www.newoortbeachdining.com • Maintained an 877 number for referrals to all Newport Beach restaurants • Updated Toll -Free Dining Reservation System for NBRA • Continued to develop NBRA identity implementing new ad campaign, logo, marketing collateral, website and photos. • Distributed NBRA Membership Informational Brochure & Decal to members • Mailed NBRA newsletters from the NBRA Advisory Board to all members. • Developed and updated a new comprehensive member listing and database • Active involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau and the Anaheim Visitors & Convention Bureau. • Active involvement in the California and National Restaurant Association • Participated in NBCVB Cooperative Marketing Programs • Participated in State of California Tourism Cooperative Marketing Programs • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to members and the public. • Sponsored the Newport Beach Film Festival & organized restaurant participation • Promoted participation in the Irrelevant Week Kickoff Party • Participated in American Express Restaurant Marketing Promotions • Implemented charitable donations to feed the homeless and OC Sheriffs Department • Sponsored reduced cost Serve Safe and ABC seminars • On -going support of the Green Restaurant Association • Initiated NBRA annual luncheon membership networking meeting 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 $36,000 of matching funds . provided by the City. Page? O - Restaurant Association Business Improvement District • Priorities and Budget Outline January 1, 2003 - December 31, 2003 Funds Available FY End 2002 $50,000 Funds to be collected January 2003 $52,000 Anticipated Matching Funds from City $36,000 Total Available Funds $136,000 Proposed FY 2003 Budget: $110,000 Priorities Percent of Budget Budget Amount 1. Marketing Plan Administration 18% $20,000 • Implement the current Marketing Plan • Identify and present new marketing opportunities to the Board • Supervise creative, production, printing and other Marketing Plan efforts 2. Media Advertising Buys 34% $37,500 • Expanded Print Media Campaign: Tourism Market: CA State, Anaheim Visitor Guides and Newport Beach Visitor Guide Local Market: Daily Pilot, OC Register, OC Metro, and Coast Magazine • Direct Mail Campaign to Local Residents . • Various Magazine Drops in Targeted Markets 2. Marketing Collateral Development 23% $25,000 • Dining Guide Production & Reprint • Dining Guide Distribution: Certified Folder Display, Western Brochure Communications 16% $18,000 • Maintain Toll -Free Dining Reservation System • Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Memberships 2% $2,000 • Anaheim Visitors & Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau 5. Special Events 7% $7,500 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships Page 0 EXHIBIT B 0 RESOLUTION NO. 2002 -_ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JANUARY 1, 2003 TO DECEMBER 31, 2003, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. 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 2002 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; 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 2003, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares it intention to renew the Business Improvement District for the fiscal year January 1, 2003 to December 31, 2003 pursuant to the Act. D 2 Section 3: The location of the District will remain the same: any restaurant doing business within the boundaries of the City of Newport Beach is part of the District. Section 4: The City Council intends 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. For establishments with less than eleven (11) employees, the assessment shall be a flat $50.00. B. For establishments with greater than ten(10) employees, 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. 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. 2. Brochure development and distribution. Resolution No. 2002 -_ Restaurant Association Business Improvement District 3 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 10, 2002 at 7:00 p.m., or 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 0 of improvements or activities shall be eliminated. Resolution No. 2002 - Restaurant Association Business Improvement District 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 (714) 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 and thereon held on the day of 2002. 0 ATTEST: CITY CLERK MAYOR Resolution No. 2002 - Restaurant Association Business Improvement District