HomeMy WebLinkAbout5 - Balboa Village 03-04 Intention to Levy 04-05CITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
March 9. 2004
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community & Economic Development, Planning Department
Daniel Trimble, Program Manager
949/644 -3230. dtrimble @ city. newport- beach. ca. us
SUBJECT: Balboa Village Business Improvement District Renewal: Annual Report
for Fiscal Year 2003 - 2004 and Adoption of Resolution of Intention to
Levy for Fiscal Year 2004 - 2005.
ISSUE:
Annual renewal of the Balboa Village Business Improvement District.
RECOMMENDATION:
1. Approve Balboa Village Business Improvement District 2003 —2004 Annual Report;
and
2. Adopt the Resolution of Intention and set the public hearing for March 23, 2004.
DISCUSSION:
Background:
The Balboa Village Business Improvement District (BID) is nearing the end of its eighth
year of operation and requests renewal of the District for the fiscal year April 1, 2004 to
March 31, 2005. The Balboa Village BID was established April 1, 1996. This report
summarizes the District's accomplishments during 2003 - 2004, its eighth year of
operation, and the proposed activities and budget for the coming year. The BID's 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 9, 2004. The District
includes the area between A Street and Coronado Street of the Balboa Peninsula as set
Balboa Village BID Renewal Hearing
March 9, 2004
Page 2
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forth with greater specificity in the map attached as Exhibit A. California 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 20032 - 2004 and proposed activities
for 2004- 2005 are provided below. The District's 2004 - 2005 activities are proposed to
remain the same as in 2004 - 2005.
Eighth Year District Accomplishments:
The Balboa Village Business Improvement District has sponsored the following promotions
and activities during the past year:
*Co- sponsored the Strada della Arte, an Italian style street drawing event. The
advertising and event management was primarily self- funded and provided
attendance for the event of approximately 4,000 additional visitors to the BID
area over two days.
*Implemented a series of concerts in the park on Thursday Nights, bringing in local
residents and tourists for promotional and cultural enrichment.
*Promoted an arts and craft fair on an experimental basis to draw local residents to
the area on a regular basis. This program is anticipated to be instituted using
local merchants after the summer 2004 season.
*Provided seasonal decorations and lighting to promote business during the holiday
season.
*Printed and distributed a merchant guide and tourism oriented brochure for Balboa
Village.
*Placed advertisements for boat parade viewing and whale watching activities in the
local media.
*Continued the Whale Watching Photo Contest to generate additional promotion to
the many whale watching based businesses in the area and to develop public
relations opportunities for the entire community.
*Produced newsletters from the Board of Directors to all members.
*Provide clean up bags for residents walking their dogs.
*Maintained 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. 0
9
Balboa Village BID Renewal Hearing
March 9, 2004
Page 3
*Maintained the www.balboanewportbeach.com website, providing seasonal
information and announcements as well as an electronic merchant directory.
"Continued a "Paint the Town" program where children from !Newport Elementary
School painted merchant windows for the Holiday Season.
`Paid for insurance coverage for the association as well as preparation of the federal
tax return.
*Participated in marketing effort to mitigate construction impacts of the Balboa
Village Revitalization Project.
Fiscal Year District Revenues:
During 2004 the district collected approximately $13,748 in member assessments and
$24,090 in matching funds and additional construction mitigation marketing funds from the
City. The District spent approximately $24,288 for approved activities. It is anticipated that
a remaining balance of approximately $2,000 will be carried over into the 2003 - 2004
fiscal year budget.
40 Proposed Activities and Budget:
The activities proposed for the next year include marketing, advertising, public relations,
and public improvements and maintenance to benefit Balboa Village businesses. The
estimated budget for these activities is approximately $28,000.
The Balboa Village 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.
0
3
Submitted by:
SHARON Z. V
Assistant City
Balboa Village BID
Prepared by:
Renewal Hearing
March 9, 2004
Page 4
DANIEL R. TRIMBLE, AICP
C & ED Program Manager
With Assistance from:
CLINTON SCOTT PALMER
Cathimarie's Inc., BID Administration
Attachments: ExhibitA —BID Boundary Map
Exhibit B — FY 2003 - 2004 Annual Report and 2004 -2005 Program
Exhibit C — Resolution of Intention to Levy 2004 -
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Exhibit A
EXHIBIT B
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT •
2003 - 2004 ANNUAL REPORT
This is the annual report for the eighth year of the Balboa Village Business
Improvement District, as required by Section 36533 of the California Streets and
Highways Code. This report covers the District's accomplishments for the
previous fiscal year (April 1, 2003 to March 31, 2004) and the proposed activities
and budget for the 2004 - 2005 fiscal year.
The boundaries of the benefit zone will remain the same as 2003 - 2004 as set
forth with greater specificity in the map attached as Exhibit A and incorporated
herein.
The improvements and activities to be provided for the coming fiscal year
include:
1. Marketing, advertising and public relations.
2. Brochure development and distribution.
3. Promotion of public events that are to take place on or in any public places in
area.
4. Decoration of any public place in the area. •
5. Public area improvements and maintenance activities.
6. The general promotion of retail trade activities.
7. BID tax preparation and liability insurance
The estimated cost of providing the proposed improvements and the activities
described in this report is approximately $26,500. The implementation of these
actions is more fully described in the attached Priorities and Budget Outline for
the 2004 - 2005 year.
The benefit assessments will be collected by the City in one annual installment,
which shall be equal to one hundred percent (100 %) of the City's annual
business license fee as established pursuant to Chapter 5.08 of the Municipal
Code. The penalty for delinquent payments shall be equal to that established for
delinquent business license fees pursuant to Chapter 5.08 of the Municipal
Code, providing that the penalty amount added shall in no event exceed one
hundred percent of the assessment amount due. Individuals with more than one
business entity within the assessment boundaries shall only be required to pay
the District assessment for the largest business, shall be exempt from
assessments on additional businesses within the District, and shall continue to
pay required business license fees in accordance with Chapter 5.08 of the •
Municipal Code. 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. Assessments shall be collected in one annual
installment at the beginning of the fiscal year, and be pro -rated for new
businesses that open during the fiscal year.
The amount of surplus carried over from the 2003 - 2004 fiscal year is
approximately $16,782 at the end of the first ten months of the fiscal year. It is
anticipated the balance will be approximately $2,000 at the fiscal year end,
March 31, 2004.
The advisory group of the Balboa Village Business Improvement District may
raise additional funds through various events and fundraisers in addition to the
assessments levied. At this time they do not anticipate additional funds for the
2004 budget.
Among the Balboa Village Business Improvement District accomplishments
during 2003 -2004 are the following:
`Co- sponsored the Strada della Arte, an Italian style street drawing event.
The advertising and event management was primarily self- funded and
provided attendance for the event of approximately 4,000 additional
visitors to the BID area over two days.
`Implemented a series of concerts in the park on Thursday Nights, bringing in
local residents and tourists for promotional and cultural enrichment.
`Promoted an arts and craft fair on an experimental basis to draw local
residents to the area on a regular basis. This program is anticipated to be
instituted using local merchants after the summer 2004 season.
`Provided seasonal decorations and lighting to promote business during the
holiday season.
`Printed and distributed a merchant guide and tourism oriented brochure for
Balboa Village.
`Placed advertisements for boat parade viewing and whale watching activities
in the local media.
`Continued the Whale Watching Photo Contest to generate additional
promotion to the many whale watching based businesses in the area and
to develop public relations opportunities for the entire community.
`Produced newsletters from the Board of Directors to all members.
•
2
*Provide clean up bags for residents walking their dogs. 40
* Maintained 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.
*Maintained the www.balboanewportbeach.com website, providing seasonal
information and announcements as well as an electronic merchant
directory.
*Continued a `Paint the Town" program where children from Newport
Elementary School painted merchant windows for the Holiday Season.
* Paid for insurance coverage for the association as well as preparation of the
federal tax return.
* Participated in marketing effort to mitigate construction impacts of the
Balboa Village Revitalization Project.
The merchants of Balboa Village appreciate the efforts of the City Council and
your continued support of their district.
IN
3
0
Balboa Village
Business Improvement District
Priorities and Budget Outline
April 1, 2004 - March 31, 2005
Funds Available FY End 2003 -2004 2,000
Funds to be Collected April 2004 14,000
Additional Funds to be raised 1,000
Matching Funds from City 11,000
Total Available Funds $28,000
Priorities Budget Amount Total
Marketing & Advertising 87% $24,450
1. Maintain memberships with NB CofC /NB CVB
2. Print advertising
3. Web Site
4. Direct -mail
5. Summer Promotions
6. Concerts / Other Promotions
Outreach Programs 5% $ 1,400
1. Monthly newsletter
2. Meeting notices
3. Maintain open communication with residents, BIDs and City
Council
4. Construction mitigation campaign
Administration 8% $ 2,150
1.Insurance
2. Accounting
3. Other
•
4
9
EXHIBIT C
RESOLUTION NO. 2004 -_
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE
FISCAL YEAR OF APRIL 1, 2004 TO MARCH 31, 2005, AND FIX THE
TIME AND PLACE OF A PUBLIC HEARING.
WHEREAS, the Balboa Village 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
Year 2003 - 2004 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 provided during 2003 - 2004, a proposed program for 2004 - 2005,
the District 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 April 1, 2004 to March 31,
2005 pursuant to the Act.
1]
0
• Section 3: The boundaries of the benefit zone are on the Balboa
Peninsula between A Street and Coronado Street, as set forth with greater
specificity in the map attached as Exhibit A and incorporated herein.
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. 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 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. 2004 -
Balboa Village Business Improvement District
3. Promotion of public events that are to take place on or in any
public places in the area;
4. Decoration of any public place in the area;
5. Public area improvements and maintenance activities;
6. The general promotion of retail trade activities.
BE IT FURTHER RESOLVED, that the City Council of the City of Newport
Beach shall conduct a public hearing on March 23, 2004 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 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 furnishing of a specific
type or types of improvements or activity within the District, those types of
improvements or activities shall be eliminated.
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.
Resolution No. 2004 -
Balboa Village Business Improvement District
I�
0
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 2004.
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit A -Boundary Map
Resolution No. 2004 -
Balboa Village Business Improvement District
1
45
RESOLUTION NO. 2004- 19
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH DECLARING ITS INTENTION TO LEVY ASSESSMENTS FOR THE
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR THE
FISCAL YEAR OF APRIL 1, 2004 TO MARCH 31, 2005, AND FIX THE
TIME AND PLACE OF A PUBLIC HEARING.
WHEREAS, the Balboa Village 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
Year 2003 - 2004 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 provided during 2003 - 2004, a proposed program for 2004 - 2005,
the District 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 April 1, 2004 to March 31,
2005 pursuant to the Act.
Section 3: The boundaries of the benefit zone are on the Balboa
Peninsula between A Street and Coronado Street, as set forth with greater
specificity in the map attached as Exhibit A and incorporated herein.
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. 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 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;
3. Promotion of public events that are to take place on or in any
public places in the area;
4. Decoration of any public place in the area;
5. Public area improvements and maintenance activities;
6. The general promotion of retail trade activities.
BE IT FURTHER RESOLVED, that the City Council of the City of Newport
Beach shall conduct a public hearing on March 23, 2004 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 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 furnishing of a specific
type or types of improvements or activity within the District, those types of
improvements or activities shall be eliminated.
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
and thereon held on the gth day of March 2004.
MAYOR
ATTEST:
�. PO�T®
CITY CLERK x
C7Q FORT
ATTACHMENT: Exhibit A - Boundary Map
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Balboa Village
Business Improvement District
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Exhi t 'A
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, LaVonne M. Harkless. City Clerk of the Cite of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven: that the foregoing
resolution. being Resolution No. 3004 -19 was duly and regularly introduced before and adopted by
the City Council of said City at a regular meeting of said Council, duly and regularly held on the 9th
day of March. 3004, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Heffernan, Rosansky, Adams, Bromberg, Webb, Nichols, Mayor Ridgeway
'_Noes: None
Absent: None
Abstain: '_None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 10th day of March, 3004.
(Seal)
City Clerk
Newport Beach, California