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HomeMy WebLinkAbout04 - Marine Avenue BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 4 June 12, 2007 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department George A. Berger, AICP; C &ED Program Manager; 949/644 -3207; gaberger@ city. newport- beach.ca.us SUBJECT: Marine Avenue Business Improvement District Renewal: Annual Report for Fiscal Year 2006 -2007, and Adoption of Resolution of Intention to Levy for Fiscal Year 2007 -2008. ISSUE: Annual renewal of the Marine Avenue Business Improvement District. RECOMMENDATION: 1. Approve the Annual Report for the 2006 -2007 Marine Avenue Business Improvement District Fiscal Year; and 2. Adopt a Resolution of Intention to Levy Assessments for FY 2007 -2008, set the public hearing for June 26, 2007, DISCUSSION: The Marine Avenue Business Improvement District (BID) is nearing the end of its eleventh year of operation, and requests renewal of the District for a new fiscal year which will run from July 1, 2007 to June 30, 2008. This report summarizes the District's accomplishments during FY 2006 -2007, 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 BID renewal for June 26, 2007. Califomia law requires that an annual report for the past fiscal year be prepared by the BID and approved by the Council, and a public hearing be held each year prior to renewal of the District, which includes the 200 and 300 blocks of Marine Avenue, as set forth with greater specificity in the map attached as Exhibit I. MA BID 2007 -2008 Renewal 1 June 12, 2007 Page 2 Eleventh Year District Accomplishments: The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: 1. Steam cleaning of the sidewalks in the MA BID subject area for the first two months of the year; 2. Purchase and installation of American flags and Balboa Island banners for the pedestrian light poles in the BID subject area; 3. Placement of advertisements for Marine Avenue in several tourist - related publications and Coast magazine; 4. Implementation and maintenance of a BID - sponsored website, www.balboa- island.net; 5. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue; 6. Participation with the Anaheim /Orange County Visitors and Conference Bureau, to more widely encourage tourists to visit Balboa Island, and specifically Marine Avenue; 7. Participation with the Newport Beach Conference and Visitors Bureau, especially in installing a directory at the Balboa Ferry landing directing visitors to Marine Avenue. 8. Preparation and sponsorship of in -room video for display at the Huntington Beach Sheraton Resort Hotel, and on the Catalina Flyer. Fiscal Year District Revenues During FY 2006 -2007 the District collected approximately $12,949 in member assessments, with $5,000 in additional funds to be collected. Its account balance at the beginning of the year was $434. The BID received $7,873 in matching funds from the City. The BID has spent approximately $17,440 for approved activities, and anticipates spending an additional $2,000.00 by fiscal year end. It is anticipated that a remaining balance of approximately $250.00 will be carried over into the FY 2007 -2008 fiscal year budget. 2 MA BID 2007 -2008 Renewal 1 June 12, 2007 Page 3 Proposed Improvements, Activities and Budget The FY 2006 -2007 Priorities and Budget Outline is submitted by the BID Advisory Board as part of the attached Annual Report. 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 $20,551. Assessment Collection The benefit assessments will be collected by the City in one installment and be pro- rated for new businesses that open during the fiscal year. 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. The Board of the Marine Avenue Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. 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. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: None Required MA BID 2007 -2008 Renewal 1 June 12, 2007 Page 4 Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Submitted by: SHARON Z. WOOD Assistant City Manager � 7 ! .IIj i Prepared by: GEORGE A. BERGER, AICP C &ED Program Manager �Lj� With assistance from: CLINTON SCOTT PALMER BID Systems Inc. Attachments: Attachment A: Resolution of Intention 07- Exhibit 1: Marine Avenue BID Boundary Map Attachment B: FY 2006 -2007 Annual Report (by BID Advisory Board) Attachment C: FY 2007 -2007 Priorities & Budget (by BID Advisory Board) K ATTACHMENT A RESOLUTION NO. 07- 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 FISCAL YEAR OF JULY 1, 2007 TO JUNE 30, 2008, 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 Year 2006 -2007 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 2007 -2008, 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 July 1, 2007 to June 30, 2008 pursuant to the Act. 5 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. 07 -_ Marine Avenue Business Improvement District 9 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 June 26, 2007 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. 07 -_ Marine Avenue Business Improvement District r1 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 2007. MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit 1 - Boundary Map Resolution No. 07 -_ Marine Avenue Business Improvement District u ATTACHMENT B MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2006 - 2007 ANNUAL REPORT This is the annual report for the eleventh 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 fiscal year (July 1, 2006 to June 30, 2007). 2006 — 2007 Accomplishments Among the Marine Avenue Business Improvement District accomplishments during the Fiscal Year 2006 -2007 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 5. Participation with the Newport Beach Conference and Visitors Bureau, especially in installing a directory at the ferry landing directing people to Marine Avenue. 6. Preparation and display of Balboa Island flag campaign in conjunction with the Balboa Island Improvement District 7. Continuation of in room video for display on the Catalina Flyer and the Huntington Beach Sheraton. Fiscal Year District Revenues During 2006 -2007 the district collected approximately $12,949 in member assessments with $5,000 in additional funds remaining to be collected. Its account balance at the beginning of the year was $434.00. The BID received $7,873 in matching funds from the City. The BID has spent approximately $17,440.00 for approved activities, and anticipates spending an additional $2,000.00 by fiscal year end. It is anticipated that a remaining balance of approximately $250.00 will be carried over into the 2007 - 2008 fiscal year budget. Renewal of District The boundaries of the benefit zone will remain the same as fiscal year 2006 - 2007 as set forth with greater specificity in the map attached as Exhibit A and incorporated herein. bfl The benefit assessments will be collected by the City in one installment. The benefit assessment shall be equal to one hundred percent (100 1/6) 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 2007 -2008 Priorities and Budget Outline, including specific goals for each category, is submitted by the BID Advisory Board concurrently with 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. 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 $20,551.00 The implementation of these actions is more fully described in the Priorities and Budget Outline for the 2007 -2008 fiscal year. The merchants of Marine Avenue appreciate the efforts of the City Council and your continued support of Balboa Island. 2 11 ATTACHMENT C Marine Avenue Business Improvement District Priorities and Budget Outline July 1, 2007 — June 30, 2008 Funds Available FY End 2007 $ 433 Funds to be Collected July 2007 $13,100 Anticipated Matching Funds from City $ 8,000 Total Available Funds $ 21,533 Priorities Percent of Budget Amount 1. Marketing 76% $15,635 • Continue to develop and market website • Place advertising in tourist related publications 2. Memberships 6% $ 1,300 • Newport Beach Visitor and Convention Bureau 3. Administration 3% $ 616 • Mailing and Postage Costs 4. Flag Program 15% $3,000 Total of Expenditures 2007 -2008 (est) $20,551 Remainder to roll over to 2008 -2009 $ 698 1L Authorized to Publish Advertisements of all kinds ircludine public notices byr _ Decree of the Superior Court of Orange County, California _ Nu A:621`3;_ (I September 29, 1961; and A -24331 June 11, . 1963.. C.1.. 207 MIN11 '2. PROOF OF PUBLICATION STATE OF CALIFORNIA) ) ss. COUNTY OF ORANGE ) I am a Citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the below entitled matter. I am a principal clerk of the NEWPORT BEACH - COSTA MESA DAILY PILOT, a newspaper of general circulation, printed and published in the City of Costa Mesa, County of Orange, State of California, and that attached Notice is a true and complete copy as was printed and published on the followina dates: JUNE 16,2007 I declare, under penalty of perjury, that the foregoing is true and correct. Executed on JUNE 16,2007 at Costa Mesa, California. Signature All I