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HomeMy WebLinkAbout08 - Marine Avenue Business Improvement District RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. s November 22, 2005 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department George A. Berger, AICP, Program Manager 949/644 -3207. gaberger @city.newport- beach.ca.us SUBJECT: Marine Avenue Business Improvement District Renewal: Annual Report for Fiscal Year 2005, and Adoption of Resolution of Intention to Levy for the Shortened Fiscal Year 2006. ISSUE: Annual renewal of the Marine Avenue Business Improvement District. RECOMMENDATION: 1. Approve Marine Avenue Business Improvement District 2005 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for December 13, 2005. DISCUSSION: Background: The Marine Avenue Business Improvement District (BID) is nearing the end of its ninth year of operation and requests renewal of the District for the fiscal year January 1 to June 30, 2006. The Marine Avenue BID was established January 1, 1996. This report summarizes the District's accomplishments during 2005, its ninth 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 December 13, 2005. The District includes the 200 and 300 blocks of Marine Avenue as set forth with greater specificity in the map attached as Exhibit A. California law requires that an annual report be prepared Marine Avenue BID Renewal Hearing November 22, 2005 Page 2 and a public hearing be held each year prior to renewal of the District. A summary of accomplishments during 2005 and proposed activities for the short year 2006 are provided below. The District's 2006 activities are proposed to remain the same as in 2005. Renewal of District City Staff has reviewed the renewal periods for all four business improvement districts. Most 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 Marine Avenue Business Improvement District be renewed for a period of six months, and then be renewed again in July of 2006 in order to match the City's Fiscal Year. Ninth Year District Accomplishments: The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: 1. Ongoing steam cleaning of the sidewalks in the BID subject area; 2. Placement of both co -op and entire - district print advertisements in several tourist - related publications; 3. Implementation and Improvement of a BID sponsored website, www.balboa- island.net; 4. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue; 5. Participation with the Anaheim /Orange County Visitors and Conference Bureau, to more widely encourage tourists to visit Balboa Island, and specifically Marine Avenue; 6. Participation with the Newport Beach Conference and Visitors Bureau, especially in installing a directory at the ferry landing directing people to Marine Avenue. Fiscal Year District Revenues: During 2005 the district collected approximately $12,898 in member assessments with $3,000 in additional funds remaining to be collected. Its account balance at the beginning Z Marine Avenue BID Renewal Hearing November 22, 2005 Page 3 of the year was $7,150.00. The BID received $8,370.00 in matching funds from the City. The BID has spent approximately $26,805.00 for approved activities, and anticipates spending an additional $1,000.00 by fiscal year end. It is anticipated that a remaining balance of approximately $600.00 will be carried over into the shortened six month 2006 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 Marine Avenue businesses. The estimated budget for these activities is approximately $6,850. 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. Prepared by: Submitted by: SHARON Z. W Assistant City nager With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration Attachments: Exhibit A — BID Boundary Map Exhibit B — FY 2005 Annual Report and 2006 Priorities & Budget Outline Exhibit C — Resolution of Intention to Levy 2005- 3 EXHIBIT B MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT 2005 ANNUAL REPORT This is the annual report for the ninth year of the Marine Avenue 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 (January 1, 2005 to December 31, 2005) and the proposed activities and budget for the 2006 shortened fiscal year. It also discusses renewing the BID for a shortened period, six months, to bring the BID renewal period into the City's Fiscal Year, and discusses proposed activities and budget for this shortened fiscal period. 2005 Accomplishments Among the Marine Avenue Business Improvement District accomplishments during 2005 are the following: 1. Placement of advertisements in several tourist related publications 2. Implementation and Improvement of a BID sponsored website, www.balboa - island.net 3. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue 4. Participation with the Anaheim/Orange County Visitors and Conference Bureau to more widely encourage county -wide tourists to visit Balboa Island Participation with the Newport Beach Conference and Visitors Bureau, especially in installing a directory at the ferry landing directing people to Marine Avenue. 6. Ongoing cleaning of the sidewalks in the subject area. Fiscal Year District Revenues During 2005 the district collected approximately $12,898 in member assessments with $3,000 in additional funds remaining to be collected. Its account balance at the beginning of the year was $7,150.00. The BID received $8,370.00 in matching funds from the City. The BID has spent approximately $26,805.00 for approved activities, and anticipates spending an additional $1,000.00 by fiscal year end. It is anticipated that a remaining balance of approximately $600.00 will be carried over into the shortened six month 2006 fiscal year budget. Renewal of District City Staff has reviewed the renewal periods for all four business improvement districts. Most of the Districts have renewal periods that are not synchronized with the City's fiscal 5 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, the BID Board recommends that the City Council renew the Marine Avenue Business Improvement District for a period of six months, and then be renewed again in July of 2006 in order to match the City's Fiscal Year. The boundaries of the benefit zone will remain the same as 2005 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein, The benefit assessments will be collected by the City in one installment during the short year six month period. The benefit assessment 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 if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. 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. Proposed Improvements, Activities and Budget The SY 2006 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: The improvements and activities to be provided for the coming fiscal year include: 1. Marketing, advertising and public relations. 2. Promotion of public events that are to take place on or in any public places in area. 3. Decoration of any public place in the area. 4. Public area improvements and maintenance activities. t CO 5. The general promotion of retail trade activities. The estimated cost of providing the proposed improvements and the activities described in this report are approximately $6,850. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the short 2006 year. The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. Marine Avenue Business Improvement District Priorities and Budget Outline January 1, 2006 — June 30, 2006 Funds Available FY End 2004 $ 600 Funds to be Collected January 2005 $6,250 Anticipated Matching Funds from City (see note Below) $ 0 Total Available Funds $ 6,850 Priorities Percent of Budget Amount 1. Sidewalk Cleaning 77% $ 5,300 2. Marketing 15% $1,000 • Continue to develop and market website • Place advertising in tourist related publications 3. Memberships 5% $ 350 • Newport Beach Visitor and Convention Bureau 5. Administration 3% $ 200 • Mailing and Postage Costs Note: Matching funds will not be available until the next year's renewal in July of 2006. Therefore, certain marketing and administrative programs will be placed on hold until the District renews. V EXHIBIT C RESOLUTION NO. 05- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR THE SHORT FISCAL YEAR OF JANUARY 1, 2006 TO JUNE 30, 2006, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Marine Avenue 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 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 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 2006, 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, 2006 to June 30, 2006 pursuant to the Act. 0 Section 3: The location of the District will remain the same: generally the 200 and 300 blocks of Marine Avenue 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 benefit assessment 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 if the business is located in a downstairs space; if upstairs, a flat $25.00 will be assessed. 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 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. An owner of more than one business within the District shall only be required to pay the assessment for the largest business, and shall be exempt from assessments on additional businesses within the District. Resolution No. 05 -_ Marine Avenue Business Improvement District 10 Section 8: 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 December 13, 2005 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. Resolution No. 05 -_ Marine Avenue Business Improvement District 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 2005. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A - Boundary Map Resolution No. 05 -_ Marine Avenue Business Improvement District I