HomeMy WebLinkAbout08 - Balboa Village BID RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 8
June 13, 2006
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 2006 and Adoption of Resolution of Intention to Levy for Fiscal
Year 2007.
ISSUE:
Annual renewal of the Balboa Village Business Improvement District.
RECOMMENDATION:
1. Approve Balboa Village Business Improvement District FY 2006 Annual Report; and
2. Adopt the Resolution of Intention and set the public hearing for June 27, 2006.
DISCUSSION:
Background:
The Balboa Village BID was established April 1, 1996. The District 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 1. California law requires that an Annual
Report, summarizing the District's prior year accomplishments, be prepared and that a
public hearing be held each year prior to renewal of the District. 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 27, 2006.
The Balboa Village Business Improvement District (BID) is nearing the end of its fiscal
year 2006 of operation and requests renewal of the BID for the fiscal year July 1, 2006 to
June 30, 2007. A summary of accomplishments during fiscal year 2006 as well as the
proposed activities and budget forthe new fiscal period are provided below.
Balboa Village BID Renewal Hearing
June 13, 2006
Page 2
FY 2006 District Accomplishments:
The Balboa Village Business Improvement District has sponsored the following promotions
and activities during the past twelve months:
• Advertised in the Newport Harbor Chamber of Commerce and the Newport
Beach Conference and Visitors Bureau and the Anaheim Visitor's and
Convention Bureau's annual Visitor's Guides
• Created a Village wide video promotion to be displayed in local hotel cable
broadcasts and on the Catalina Flyer
• Contracted with Certified Folder Brochure Distribution to distribute Village
brochures throughout Orange County Hotels
• Instituted a holiday decorations program that encouraged participation form local
merchants and received compliments from local residents
• Prepared for a series of concerts in the park on Thursday Nights, bringing in local
residents and tourists for promotional and cultural enrichment
• Provided 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 the Anaheim Visitor's
and Convention 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
Fiscal Year BID Revenues:
During the fiscal year the BID received approximately $17,600 in member assessments,
$9,000 in City matching funds, and had a prior period holdover of $8,900. The BID spent
approximately $19,500 for approved activities and anticipates spending another $6,500
before renewal. It is anticipated that a remaining balance of approximately $9,500 will be
carried over into the new 2007 fiscal year budget.
Proposed Activities and Budget:
The activities proposed for the new fiscal year include marketing, advertising, public
relations, and public area maintenance to benefit Balboa Village businesses. The
estimated budget for these activities is approximately $32,000 for the fiscal year. The
Balboa Village BID appreciates the City Council's continued support.
Balboa Village BID Renewal Hearing
June 13, 2006
Page 3
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.
Submitted by:
r
Prepared by:
DANIEL R. TRIMBLE
C & ED Program Manager
With Assistance from:
CLINTON SCOTT PALMER
BID Systems Inc., BID Administration
Attachments: A — FY 2006 Annual Report
B — Resolution of Intention to Levy 2006 -
Exhibit 1 — BID Boundary Map
Attachment A
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT
2006 ANNUAL REPORT
Overview
This is the annual report for the tenth year of the Balboa Village Business Improvement
District (BID), as required by Section 36533 of the California Streets and Highways Code.
This report covers the District accomplishments for the fiscal year (July 1st, 2005 to June
30, 2006) and the proposed activities and budget for the 2007 fiscal year.
Prior Year Accomplishments
Among the District accomplishments during fiscal year 2006 are the following:
• Advertised in the Newport Harbor Chamber of Commerce and the Newport
Beach Conference and Visitors Bureau and the Anaheim Visitor's and Convention
Bureau's annual Visitor's Guides
• Created a Village wide video promotion to be displayed in local hotel cable
broadcasts and on the Catalina Flyer
• Contracted with Certified Folder Brochure Distribution to distribute Village
brochures throughout Orange County Hotels
• Instituted a holiday decorations program that encouraged participation form
local merchants and received compliments from local residents
• Prepared for a series of concerts in the park on Thursday Nights, bringing in local
residents and tourists for promotional and cultural enrichment
• Provided 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 the Anaheim Visitor's
and Convention Bureau
• Maintained the Nvww.balboanewportbeach.com website, providing seasonal
information and announcements as well as an electronic merchant directory
• Paid for insurance coverage for the association.
Proposed Activities and Budget
The improvements and activities to be provided for the coming 2007 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 maintenance activities.
6. The general promotion of restaurant and retail trade activities.
7. BID liability insurance.
q
The estimated cost of providing the proposed improvements and the activities described
in this report is approximately $32,000. The implementation of these actions is more
fully described in the attached Priorities and Budget Outline for the 2007 fiscal year.
The amount of surplus carried over from the 2006 fiscal year is anticipated to be
approximately $9,500 at the year -end, June 30, 2006.
The advisory group of the Balboa Village BID 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 2007 budget.
Thank you
The merchants of Balboa Village appreciate the efforts of the City Council and your
continued support of their BID.
2
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Balboa Village
Business Improvement District
Priorities and Budget Outline
July 1, 2006 -June 30, 2007
Available Funds
Funds Available FY End 2005 -2006 9,500
Anticipated FY 2007 Matching Funds from City 10,000
Funds to be Collected July 2007 1220
Total Available Funds $32,000
Planned Expenditures
Marketing & Advertising $29,200
1. Maintain memberships with NB Chamber of Commerce /NB CVB
2. Print advertising
3. Web Site
4. Direct-mail
5. Summer Promotions
6. Concerts /Other Promotions
Outreach Programs
1. Monthly newsletter
X600
2. Meeting notices
3. Maintain open communication with residents, other B1Ds & City Council
4. Construction mitigation campaign
Maintenance $600
1. Doggie Walk Bags
Administration $1,600
1. Insurance /Other Administration
Total Planned Expenditures $32,000
6
Attachment B
RESOLUTION NO. 2006-
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 JULY 1, 2006 TO JUNE 30, 2007, 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 District Advisory Board has prepared an Annual Report
for Fiscal Year 2006 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 District Advisory Board
is hereby approved. The Annual Report contains a description of improvements
and activities provided during the 2006 Fiscal Year, the District assessment fund
balance to be carried forward, and a proposed program for the 2007 Fiscal Year.
Section 2: The City Council hereby declares it intention to renew
the Business Improvement District for the fiscal year July 1, 2006 to June 30,
2007 pursuant to the Act.
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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 1 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 for the shortened period.
B. Insurance agencies that are exempt from City business
license regulations shall be assessed $250 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 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 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. 2006 -
Balboa Village Business Improvement District
D
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 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 27, 2006 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, 92663. 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. 2006 -
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
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit 1 — District Boundary Map
2006.
Resolution No. 2006 -
Balboa Village Business Improvement District
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Business Improvement District
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