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HomeMy WebLinkAbout06 - Balboa Village BIDCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 6 March 8, 2005 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 2004 - 2005 and Adoption of Resolution of Intention to Levy for Shortened Fiscal Year 2005. ISSUE: Annual renewal of the Balboa Village Business Improvement District. RECOMMENDATION: 1. Approve Balboa Village Business Improvement District 2004 —2005 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for March 22, 2005. DISCUSSION: Background: The Balboa Village Business Improvement District (BID) is nearing the end of its ninth year of operation and requests renewal of the District for the fiscal period April 1, 2005 to June 30, 2005. The Balboa Village BID was established April 1, 1996. This report summarizes the District's accomplishments during 2004 - 2005, its ninth year of operation. It also discusses renewing the BID for a shortened period, three months, to bring the BID renewal period into the City's Fiscal Year, and discusses proposed activities and budget for this shortened fiscal period. 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 22, 2005. The District Balboa Village BID Renewal Hearing March 8, 2005 Page 2 includes the area between A Street and Coronado Street of the Balboa Peninsula as set 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 2004 - 2005 and proposed activities for the shortened fiscal period are provided below. The District's 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: `Implemented an aggressive schedule of seasonal special events to attract the local and tourist market alike to the area. These included Easter, Halloween, summer, and Art Walk events. *Hosted a series of concerts in the park on Thursday Nights, bringing in local residents and tourists for promotional and cultural enrichment. *Provided seasonal decorations and lighting to promote business during the holiday season. *Made merchant guide and tourism oriented brochure for Balboa Village available through merchants and the website. *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. *Maintained the www.balboanewDortbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. * Paid for insurance coverage for the association as well as preparation of the Balboa Village BID Renewal Hearing March 8, 2005 Page 3 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 $10,117 in member assessments and $11,654 in matching funds from the City. The District spent approximately $26,054 for approved activities. It is anticipated that a remaining balance of approximately $5,000 will be carried over into the shortened fiscal year budget Proposed Activities and Budget: City Staff has reviewed the renewal periods for all four business improvement districts. Each of the Districts has renewal periods that are not synchronized with the City's fiscal year. Staff has determined that efficiencies in administration of the Districts would be realized if all four Business Improvement Districts renewed in synch with the City's Fiscal Yea r. Therefore, Staff recommends that the Balboa Village Business Improvement District be renewed for three months, and then be renewed again in July of 2005 in order to match the City's Fiscal Year. The activities proposed for the shortened year include marketing, advertising, public relations, and public improvements and maintenance to benefit Balboa Village businesses. The estimated budget for these activities is approximately $9,000 for the shortened period. 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. Balboa Village BID Renewal Hearing March 8, 2005 Page 4 Submitted by: Prepared by: SHARON Z. W D DANIEL R. TRIMBLE Assistant City anager C & ED Program Manager With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A— BID Boundary Map Exhibit B — FY 2004 - 2005 Annual Report Exhibit C — Resolution of Intention to Levy 2005 -_ Balboa Village Business Improvement District Y }_ y� ' M vX�• } 111, �� � � •Y 'i. yyQ. III Ids '8410 � rs � p jc R r; : ; r:- . qCE �NG .-- f:a t :: Pacif c..'4c.ean. Balboa PW r Fn, 0 100 200 300 Feet %` Balboa Business Improvement ® District Boundary Exhibit A EXHIBIT B BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT 2004 - 2005 ANNUAL REPORT This is the annual report for the ninth 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, 2004 to March 31, 2005) and the proposed activities and budget for a shortened 2005 fiscal year. The boundaries of the benefit zone will remain the same as 2004 - 2005 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. Among the Balboa Village Business Improvement District accomplishments during 2004 —2005 are the following: *Implemented an aggressive schedule of seasonal special events to attract the local and tourist market alike to the area. These included Easter, Halloween, summer, and Art Walk events. *Hosted a series of concerts in the park on Thursday Nights, bringing in local residents and tourists for promotional and cultural enrichment. *Provided seasonal decorations and lighting to promote business during the holiday season. *Made merchant guide and tourism oriented brochure for Balboa Village available through merchants and the website. *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. *Maintained the www.balboanewportbeach.com website, providing seasonal information and announcements as well as an electronic merchant directory. * Paid for insurance coverage for the association as well as preparation of the federal tax return. City Staff has reviewed the renewal periods for all four business improvement districts. Each of the Districts have renewal periods that are not synchronized with the City's fiscal year. Staff has determined that efficiencies in Administration of the Districts would be realized if all four Business Improvement Districts renewed in synch with the City's Fiscal Year. Therefore, Staff recommends that the Balboa Village Business Improvement District be renewed for three months, and then be renewed again in July of 2005 in order to match the City's Fiscal Year. The improvements and activities to be provided for the coming shortened 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 $8,800. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2005 short year. The benefit assessments will be collected by the City in one annual installment, which shall be equal to one hundred percent (25 %) 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 F) 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 $125 for the shortened assessment period. Insurance agencies that are exempt from City business license regulations shall be assessed $62.50 for the shortened assessment period. Assessments shall be collected in one annual installment at the beginning of the for the shortened assessment period, and be pro -rated for new businesses that open during the for the shortened assessment period. The amount of surplus carried over from the 2004 - 2005 fiscal year is approximately $9,400 at the end of the first ten months of the fiscal year. It is anticipated the balance will be approximately $5,000 at the fiscal year end, March 31, 2005. 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 2005 budget. The merchants of Balboa Village appreciate the efforts of the City Council and your continued support of their district. 3 Balboa Village Business Improvement District Priorities and Budget Outline April 1, 2004 — June 30, 2005 Funds Available FY End 2003 -2004 5,000 Funds to be Collected April 2004 4,000 Total Available Funds $9,000 Marketing & Advertising $8,000 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 $ 67 1. Monthly newsletter 2. Meeting notices 3. Maintain open communication with residents, BIDs and City Council 4. Construction mitigation campaign Maintenence 1. Doggie Walk Bags $ 600 4 EXHIBIT C RESOLUTION NO. 2005- 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 SHORTENED FISCAL YEAR OF APRIL 1, 2005 TO JUNE 30, 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 shortened fiscal year; and WHEREAS, the Advisory Board has prepared an Annual Report for fiscal Year 2004 - 2005 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 shortened 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 2004 - 2005, a proposed program for the short year 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 shortened fiscal year April 1, 2004 to June 30, 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 $125 for the shortened period. B. Insurance agencies that are exempt from City business license regulations shall be assessed $62.50 or the shortened period. 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 25 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 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 shortened 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. 2005 - 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 22, 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. 2005 - Balboa Village Business Improvement District 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 2005. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 2005 - Balboa Village Business Improvement District