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Home My WebLink About07 - Restaurant Association BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 7 June 12, 2007 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: Restaurant Association Business Improvement District Renewal: Annual Report for Fiscal Year 2006 -2007 and Adoption of Resolution of Intention to Levy for a Fiscal Year of July 1, 2007 to June 30, 2005. ISSUE: Annual renewal of the Restaurant Association Business Improvement District. RECOMMENDATION: 1. Approve Restaurant Association Business Improvement District Fiscal Year 2006 -2007 Annual Report; and 2. Adopt the Resolution of Intention and set the public hearing for June 26, 2007. DISCUSSION: Background: The Restaurant Association Business Improvement District (BID) is nearing the end of its twelfth year of operation and requests renewal of the District for a fiscal year of July 1, 2007 to June 30, 2005. 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 June 26, 2007. California law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. This report summarizes the District accomplishments during the fiscal year 2006 -2007, its eleventh year of operation, and the proposed activities and budget for the coming year. A summary of accomplishments during the FY 2006 -2007 and proposed activities for FY 2007 - 2005 are provided below. The District's FY 2007 -2005 proposed activities are recommended to remain the same as in FY 2006 - 2007. Restaurant Association BID Renewal June 12, 2007 Page 2 Twelfth Year District Accomplishments: The merchants of the Restaurant Association have found their twelfth year as a Business Improvement District to be very successful and have achieved several accomplishments including: • Implemented the Newport Beach Restaurant Week, a promotional event that allowed customers to experience different restaurants on a prix fixe menu • Retained California Marketing Concepts to create and execute Marketing Plan of Work & Budget • Distributed NBRA Dining Guides through the following outlets: Western Brochure Distributors, California Welcome Center, Conference & Visitors Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment • Maintained NBRA Website: www.newportbeachdininci.com (with upwards of 250,000 unique visitors daily) • Maintained toll -free Dining Reservation System for all NBRA restaurants with an average of 650 calls per month and 250 -300 direct connections to various NBRA restaurants • Implemented local media campaign to promote website, dining guide and phone reservation system • Mailed NBRA newsletters from the Board of Directors to all members ■ Developed and updated a comprehensive member listing and database • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association • Placed advertisements in the NBCVB & AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide, Los Angeles Times Magazine, OC Metro Menus, Orange County Cuisine, Destination Hyatt, NB Chamber Map • Placed full panel advertisements in the NB Chamber map and the Anaheim Official Dining Guide • Negotiated over $55,000 worth of in kind media placements ■ Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs • Secured a NBRA Co -op sponsorship panel display and referral program at the California Visitor Center to promote NBRA • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public • Sponsored reduced cost Serve Safe and ABC seminars ■ Hosted NBRA annual luncheon membership networking meeting 7 Restaurant Association BID Renewal June 12, 2007 Page 3 Fiscal Year District Revenues: During the FY 2006 - 2007 the district collected approximately $64,000 in member assessments and $2,000 in expense reimbursements. It also received $32,444 in matching funds from the City, as well as an additional $50,000 in special events funds from the City for Restaurant Week. An additional $22,000 in sponsorships was collected for the Restaurant Week as well. The District spent approximately $148,000 for approved activities. The District's current account balance is approximately $32,600, and it is anticipated that a remaining balance of approximately $25,000 will be carried over into the FY 2007 - 2008 budget. Proposed Activities and Budaet: The activities proposed for the next year include marketing, advertising, and public relations to benefit Restaurant Association businesses. The estimated budget for these activities is approximately $166,000. 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. Prepared by: �L S ARON Z. WQ D Assistant City Vanager Submitted by: 'r 3 With Assistance from: CLINTON SCOTT PALMER BID Systems Inc., BID Administration Attachments: A — FY 2006 -2007 Annual Report B — Resolution of Intention to Levy 2007 - '.3 Attachment A RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR FISCAL 2006 - 2007 YEAR Overview 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 the Fiscal Year 2006 -2007. Prior Year Accomplishments The merchants of Restaurant Association have found their twelfth 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 of Work & Budget • Distributed NBRA Dining Guides through the following outlets: Western Brochure Distributors, California Welcome Center, Conference & Visitors Bureaus, hotels, Anaheim Convention Center display racks, direct mail, special events and various inquiries and media fulfillment • Maintained NBRA Website: www.newportbeachdining.com (with upwards of 250,000 unique visitors daily) • Maintained Toll free Dining Reservation System for all NBRA restaurants with an average of 650 calls per month and 250 -300 direct connections to various NBRA restaurants • Implemented local media campaign to promote website, dining guide and phone reservation system • Mailed NBRA newsletters from the Board of Directors to all members • Developed and updated a comprehensive member listing and database • Active membership involvement with the Newport Beach Chamber of Commerce, the Newport Beach Conference and Visitor's Bureau, Anaheim Visitors & Convention Bureau and the California Restaurant Association • Placed advertisements in the NBCVB &z AOCVCB Annual Visitor Guide Publications, Preferred Destinations, CA Official Visitor Guide, Los Angeles Times Magazine, OC Metro Menus, Orange County Cuisine, Destination Hyatt, NB Chamber Map • Placed full panel advertisements in the NB Chamber map, the Anaheim Resort Rapid Transit Guide and the Anaheim Official Dining Guide • Negotiated over $55,000 worth of in kind media placements • Participated in NB Chamber, NBCVB, & AOC VCB and CRA Cooperative Marketing Programs • Secured a NBRA Co -op sponsorship panel display and referral program at the California Visitor Center to promote NBRA • Purchased two panels at the AOC VCB Restaurant Reservation Booth and participated in the referral program to promote the NBRA • Co- sponsored the "Taste of Newport" Chefs Cooking Pavilion and promoted event to public • Sponsored reduced cost Serve Safe and ABC seminars • Hosted NBRA annual luncheon membership networking meeting _4 Organized, prepared and implemented "Newport Beach Restaurant Week" as an annual ongoing event. Proposed Activities The improvements and activities to be provided for the year include: 1. Implementation of new FY 2007 — 2008 Comprehensive Marketing Plan of Work BSc 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 Visitor's Bureau, Newport Harbor Area Chamber of Commerce, California and National Restaurant Associations. 5. Continuation of the Restaurant Week Proposed Budget and Account Status The estimated cost of providing the proposed improvements and activities for the fiscal year in this report is approximately $166,000. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2007 - 2008 Fiscal Year. The District's current account balance is approximately $37,000 at the end of the eleventh month of the previous fiscal year. It is anticipated the balance will be approximately $25,000 or less at the year -end, June 30, 2007, and will be carried over to the next fiscal year. Matching funds, if approved by the City Council, will be added to the amount designated for marketing activities in the following new fiscal year, July 2007 to June 2008- Thank You 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 $32,444 of matching funds, and the additional $50,000 of supplemental marketing funds provided by the City for FY 2006 - 2007. Page 2 6 Restaurant Association Business Improvement District Priorities and Budget Outline July 1, 2007 —June 30, 2008 Funds Available FY End 2007 $15,000 Funds to be collected July 2007 $65,000 Anticipated Matching Funds from City $36,000 Additional Funds for Restaurant Week through City or Sponsors $50,000 Total Available Funds $166,000 Planned Expenditures Percent of Budget Budget Amount 1. Marketing Plan Administration 180/0 $30,000 • 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 8% $14,000 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 3. Marketing Collateral Development 9010 $15,000 • Dining Guide Production & Reprint • Dining Guide Distribution: Western Brochure 4. Communications 8 %u $14,000 • Maintain Toll -Free Dining Reservation System • Website Maintenance • Newsletter Development, Printing and Postage • Database Development and Update 5. Memberships 2% $2,000 • Anaheim Visitors &t Convention Bureau • California Restaurant Association • Newport Beach Chamber of Commerce • Newport Beach Visitor and Convention Bureau 6. Restaurant Week 52% $87,000 • Marketing • Promotion • Media Buys • Advertising Page 3 6. Special Events 2 %u $4,000 • Annual Meeting Luncheon • Holiday Charitable Events • Special Event Sponsorships Page 4 EXHIBIT B RESOLUTION NO. 07- 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 JULY 1, 2007 TO JUNE 30, 2008, 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 the 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 the fiscal year 2006 - 2007, the area boundaries, and the annual assessment within the District. Section 2: The City Council hereby declares its intention to renew the Business Improvement District for the period of July 1, 2007 to June 30, 2008 pursuant to the Act. M 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. C. 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. 4. The general promotion of restaurant trade activities. Resolution No. 07 -_ . Restaurant Association Business Improvement District IN 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 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, 92655. 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. 07 -_ Restaurant Association Business Improvement District Jo 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. ATTEST: CITY CLERK MAYOR Resolution No. 07 -_ Restaurant Association Business Improvement District Authorized to Publish Advertisements of all kinds including public notices by Decree of the Superior Court of Orange Countv, California. Number 527-4— tt September. 29, 1961, and A -24331 June 11, 1963. P i- ` , E i VI_ h Zii;? ,liJi,1 5 PROOF OF PUBLICATION f STATE OF CALIFORNIA) �, 4 ) 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 parry 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