HomeMy WebLinkAbout07 - Restaurant Association BID RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 7
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: Restaurant Association Business Improvement District Renewal: Annual
Report for shortened Fiscal Year 2006 and Adoption of Resolution of
Intention to Levy for a Fiscal Year of July 1, 2006 to June 30, 2007.
ISSUE:
Annual renewal of the Restaurant Association Business Improvement District.
RECOMMENDATION:
1. Approve Restaurant Association Business Improvement District shortened Fiscal
Year 2006 Annual Report; and
2. Adopt the Resolution of Intention and set the public hearing for June 27, 2006.
DISCUSSION:
Background:
The Restaurant Association Business Improvement District (BID) is nearing the end of
its eleventh year of operation and requests renewal of the District for a fiscal year of
July 1, 2006 to June 30, 2007. 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. 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 2006, its
eleventh year of operation, and the proposed activities and budget for the coming year.
A summary of accomplishments during the short FY 2006 and proposed activities for FY
Restaurant Association BID Renewal
June 13, 2006
Page 2
207 are provided below. The District's FY 2007 proposed activities are recommended
to remain the same as in short FY 2006.
Eleventh Year District Accomplishments:
Tne merchants of Restaurant Association have found their eleventh 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 & 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, USA Today
• 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
Restaurant Association BID Renewal
June 13, 2006
Page 3
Fiscal Year District Revenues
During the short FY 2006 the district collected approximately $30,750 in member
assessments and $3,000 in expense reimbursements. In the past year, the Restaurant
Association has received $39,000 in City matching funds and $35,000 in supplemental
marketing funds. The District spent approximately $72,000 for approved activities. The
District's current account balance is approximately $37,000, it is anticipated that a
remaining balance of approximately $25,000 will be carried over into the FY 2007 budget.
Proposed Activities and Budget:
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 $121,000. 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.
Submitted by: Prepared by:
�tHARON Z. W DANIEL R. TRIMBLE
Assistant City a ager C & ED Program Manager
With Assistance from:
CLINTON SCOTT PALMER
BID Systems Inc., BID Administration
Attachments: A — Short FY 2006 Annual Report
B — Resolution of Intention to Levy 2006 -.
Attachment A
RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT
ANNUAL REPORT FOR SHORT FISCAL 2006 YEAR
Overview
TLis 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 short Fiscal Year
2006.
Prior Year Accomplishments
The merchants of Restaurant Association have found their tenth 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 S Visitors Bureaus, hotels,
Anaheim Convention Center display racks, direct mail, special events and various
inquiries and media fulfillment
• Maintained NBRA Website: \anaw.ne\a,portbeachdining.com (\vith 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 \vebsite, 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 b:. 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, USA
Today
• 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 nvo panels at the ADC 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
■
Proposed Activities
The improvements and activities to be provided for the year include:
1. Implementation of new FY 2007 Comprehensive Marketing Plan of Work & 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.
Proposed Buffet and Account Status
The estimated cost of providing the proposed improvements and activities for the fiscal year in
this report is approximately $121,000. The implementation of these actions is more fully
described in the attached Priorities and Budget Outline for the 2007 Fiscal Year.
The District's current account balance is approximately $37,000 at the end of the five months of
the previous short fiscal year. It is anticipated the balance will be approximately $25,000 or less
at the year -end, June 30, 2006, 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 2006 to June 2007.
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 $39,000 of matching funds, and the additional $35,000 of
supplemental marketing funds provided by the City for FY 2006.
Page2
Restaurant Association Business Improvement District
Priorities and Budget Outline
July 1, 2006 —June 30, 2007
Funds Available FY End 2005
Funds to be collected January 2006
Anticipated Matching Funds from City
Total Available Funds
$25,000
$60,000
$36,000
$121,000
Planned Expenditures Percent of Budget Buffet Amount
1. Marketing Plan Administration 25% $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 30% $36,000
• 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 25% $30,000
• Dining Guide Production &t Reprint
• Dining Guide Distribution: Western Brochure
4. Communications 16% $19,000
• Maintain Toll -Free Dining Reservation System
• Website Maintenance
• Newsletter Development, Printing and Postage
• Database Development and Update
5. Memberships 2% $21,000
• Anaheim Visitors & Convention Bureau
• California Restaurant Association
• Newport Beach Chamber of Commerce
• Newport Beach Visitor and Convention Bureau
6. Special Events $4,000
• Annual Meeting Luncheon
• Holiday Charitable Events
• Special Event Sponsorships
Page
Attachment B
RESOLUTION NO. 2006-
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, 2006 TO JUNE 30, 2007, 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
Short 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 Advisory Board is
hereby approved. The Annual Report contains a description of activities
provided for the short year 2006, 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 period of July 1, 2006 to June 30,
2007 pursuant to the Act.
Section 3: The area 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.
1
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 subject 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.
5. Educational and training classes for members.
6. Memberships in organizations that 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 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
Resolution No. 2006 -
Restaurant Association Business Improvement District
In
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.
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 2006.
ATTEST:
CITY CLERK
MAYOR
Resolution No. 200&
Restaurant Association Business Improvement District
0,