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HomeMy WebLinkAbout05 - Corona Del Mar BID RenewalCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. J5 June 10, 2008 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department Kathlyn Bowden, AICP; Economic Development Coordinator kbowden ()citv.newport- beach.ca.us SUBJECT: Corona del Mar Business Improvement District Renewal: 2007 -2008 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2008 -2009. ISSUE: Should the City Council renew the Corona del Mar Business Improvement District for its 13th year of operation, for the BID's fiscal year of July 1�% 2008 to June 30th, 2009? RECOMMENDATION: 1. Approve the Corona del Mar Business Improvement District Fiscal Year 2007 -2008 Annual Report; and 2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for June 24, 2008. Background The Corona del Mar Business Improvement District (BID) is nearing the end of its twelfth year of operation and requests renewal of the District for the fiscal year July 1, 2008 to June 30, 2009. This report summarizes the District's accomplishments during Fiscal Year 2007 -2008, 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 June 24, 2008. The District includes the area generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. CdM BID 2007 -2008 Annual Report & Resolution of Intention to Levy June 10, 2008 Page 2 California law requires that an annual report be prepared and a public hearing be held each year prior to renewal of the District. A summary of accomplishments during 2006 and 2007 and proposed activities for 2007 — 2008 are provided below. Twelfth Year District Accomplishments The Corona del Mar BID sponsored the following promotions and activities during the past year. • Committed $40,000 of matching funds from the City to offset the cost of the medians constructed three years ago. • Worked with the City to install a signal at Iris Street. • Developed specific designs for the intersection of Marguerite and Coast Highway in conformance with the Vision Plan. • Purchased additional king palms for planting in landscaped medians along the East Coast Highway. • Paid for quarterly maintenance of decorative plant bedding at the Marguerite / Coast Highway intersection with replanting as needed. • Maintained the health of the 200 Palms and Hong Kong Orchids along the Coast Highway right -of -way. The BID also paid to maintain the planters and irrigation systems. • Supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk. • Installed Holiday Season Decorations in the medians at Marguerite and Coast Highway. • Contracted with Roger's Gardens to redevelop the medians at Marguerite and Coast Highway in a more maintenance efficient, California-friendly plant palette. • Contracted with the Chamber to maintain and update the Corona del Mar BID website (www.cdmvillage.com), to educate the public about the CdM Vision Plan and distribute information on the administration and current events of the BID. • Moved to secure insurance coverage for the association. Fiscal Year District Revenues During the 2007 -2008 fiscal year the District collected approximately $92,900 in assessments from members, with an additional $20,000 in accounts receivable to be collected by the end of the fiscal year. Its account balance as of the beginning of the year was $71,468. The BID received $49,450 in matching funds from the City. The BID has spent approximately $109,454 for approved activities, and anticipates spending an additional $40,000 by fiscal year end. Z CdM BID 2007 -2008 Annual Report & Resolution of Intention to Levy June 10, 2008 Page 3 The District's current account balance is approximately $103,832 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $60,000 or less at the fiscal year end, June 30, 2008. Revenue from members in the 2008 — 2009 period is projected to be $96,700, with City Matching revenues projected to be $50,000. $206,000 has been allocated for projected expenses with an anticipated $700 remaining at the end of the 2008 -2009 Fiscal Year. Proposed Improvements, Activities and Budget The FY2008 -2009 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: 1. Marketing, advertising, and promotion of Corona del Mar; 2. Physical Improvements within Corona del Mar; 3. Corona del Mar BID Member and Community Outreach; 4. Corona del Mar BID CdM Vision Plan and associated administration; and 5. Administrative costs such as mailing and insurance. The estimated cost of providing the proposed improvements and activities to be undertaken by the BID in the FY 08 -09 period is approximately $206,000. The implementation of these actions is more fully described in the attached CdM BID Priorities and Budget Outline for the Fiscal Year 2008 -2009. The Advisory Board of the Corona del Mar Business Improvement District does not expect to raise funds in addition to the assessments levied for the upcoming year. It is anticipated that matching funds will be approved by the City Council for the Fiscal Year 2008 -2009 in an approximate amount of $50,000. 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. FUNDING AVAILABILITY: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Prepared by: . ..PAY./ /KATHLYN BOWDEN Economic Development Coordinator Submitted by: SHARON Z. WOO Assistant City MartWer 3 CdM BID 2007 -2008 Annual Report & Resolution of Intention to Levy June 10, 2008 Page 4 With Assistance from: CLINTON SCOTT PALMER B.I.D. Systems, Inc., BID Administration Attachments: Exhibit A — BID Boundary Map Exhibit B — FY 07 -08 Annual Report and FY 08 -09 Priorities & Budget Exhibit C — Resolution of Intention to Levy 2008 - y Exhibit `B" REPORT TO THE MAYOR AND CITY COUNCIL CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT FOR 2007 -2008 FISCAL YEAR Overview This is the annual report for the Corona del Mar Business Improvement District, as required by Section 36533 of the California Streets and Highways Code, for the fiscal year July 1, 2007 to June 30, 2008. Boundaries The boundaries of the benefit zone remain unchanged: Generally located on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A. Proposed Activities The improvements and activities to be provided for the fiscal year include: 1. Marketing, advertising, and promotion of Corona del Mar; 2. Physical Improvements within Corona del Mar; 3. Corona del Mar BID Member and Community Outreach; and 4. Corona del Mar BID CdM Vision Plan and associated administration. Proposed Budget The estimated cost of providing the proposed improvements and activities in this report is approximately $206,280. The implementation of these actions is more fully described in the attached Priorities and Budget Outline for the 2008 -2009 Fiscal Year. Assessments Assessments shall be collected in one annual installment at the beginning of the fiscal year, and shall be pro-rated for new businesses that open during the fiscal year. The benefit assessment shall be equal to 150% of the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments will be twenty-five percent per month, providing that the penalty amount added shall in no event exceed one hundred percent of the assessment amount due. 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. Persons operating in one of the following types of businesses, as an independent contractor in an I establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents Account Status During the 2007 -2008 fiscal year, the District collected approximately $92,900 in assessments from members, with an additional $20,000 in accounts receivable to be collected by the end of the fiscal year. Its account balance of the beginning of the year was $71,468. The BID received $49,450 in matching funds from the City. The BID has spent approximately $109,454 for approved activities, and anticipates spending an additional $40,000 by fiscal year end. Prior Year Accomplishments The District's current account balance is approximately $103,832 at the end of the first eleven months of the fiscal year. It is anticipated the balance will be approximately $60,000 or less at the fiscal year end, June 30, 2008. Revenue from members in the 2008 — 2009 period is projected to be $96,700 and City Matching revenues to be $50,000. $206,000 has been allocated for projected expenses with an anticipated $700 left over at the end of the 2008- 2009 Fiscal Year. The merchants of Corona del Mar have found their twelfth year as a Business Improvement District to be very successful and have achieved several accomplishments including: * The BID committed the final $40,000 of matching funds from the City to offset the cost of the medians constructed three years ago. *The BID proceeds to make progress on the various items called for on the CdM Vision Plan. The BID is working with the City to install a signal at his Street. Designs for sidewalk treatments throughout the village have been presented to the Advisory Board, and additional plans for street lighting and furniture are in progress. Specific designs are being planned for the intersection of Marguerite and Coast Highway in conformance with the Vision Plan. Additional king palms are being secured for planting in landscaped medians along East Coast Highway. *The BID continues in its marketing efforts with the Corona del Mar Chamber of Commerce. As part of this joint effort, the BID 7 contracted with the Chamber to maintain and update the Corona del Mar BID website (www.edmvillaae.coml, to educate the public about the CdM Vision Plan and distribute information on current events and administration of the BID. The Chamber also includes the BID newsletter in its bi- monthly newsletter sent to all BID members and Chamber members. The BID also worked with the Chamber in recognizing merchants who renovate their stores or buildings through their Beautification Award. In addition, the BID paid for a presence for all of its members in the 2008 Corona del Mar Directory. *The BID paid for quarterly maintenance of decorative plant bedding at the Marguerite / Coast Highway intersection with replanting as needed. *The BID maintained the health of the 200 Palms and Hong Kong Orchids along the Coast Highway right -of -way. The BID also paid to maintain the planters and irrigation systems. *The BID supported the Corona del Mar Chamber of Commerce with the Annual Christmas Walk. *The BID installed Holiday Season Decorations in the medians at Marguerite and Coast Highway. *The BID contracted with Roger's Gardens to redevelop the medians at Marguerite and Coast Highway in a more maintenance efficient, California - friendly plant palette. *Moved to secure insurance coverage for the association. The merchants of Corona del Mar have worked hard to promote and improve their village and wish to express their appreciation for the City Council's continued support of the Corona del Mar Business Improvement District. 0 Corona del Mar Business Improvement District Priorities and Budget Outline July 1, 2008 —June 30, 2009 Funds Available FY End 2008 Funds to be collected July 2008 Anticipated Matching Funds from City Total Available Funds Priorities 1. Marketing / Marketing Administration 2. Physical Improvements/Maintenance 3. Member and Community Outreach 4. Vision Plan Implementation 5. Administration Expense $60,000 $96,000 $50,000 $206,000 Budget Amount $34,280 $35,300 $33,000 $100,000 $ 3,700 0 Exhibit "C" RESOLUTION NO. 2008- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH STATING ITS INTENTION TO LEVY ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JULY 1, 2008 TO JUNE 30, 2009. WHEREAS, the Corona del Mar 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 2007 — 2008 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on June 10, 2008, the Corona del Mar Business Improvement District annual report was filed and approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby declares its intention to renew the Corona del Mar Business Improvement District for the 2008 -2009 fiscal year pursuant to the Act. Section 2: The City Council hereby declares the intention to levy assessments for the Business Improvement District for the fiscal year July 1, 2008 to June 30, 2009 pursuant to the Act. Such benefit assessment shall be as Resolution No. 08- Corona del Mar Business Improvement District !0 follows: z 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. Hairstylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the District shall be 150 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 3: 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 4: 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 5: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing and advertising 2. Physical improvements Resolution No. 08- Corona del Mar Business Improvement District �l 3 3. Maintenance Programs 4. Administration Section 6: The location of the District will remain the same: Generally located on East Coast Highway from Hazel Drive to Avocado Avenue as set forth with greater specificity in the map attached as Exhibit A. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 24, 2008 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 renewal 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 which 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 or benefit within the District, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed Business Improvement District renewal and expansion may be obtained at the Newport Beach City Hall, 3300 Newport Boulevard, Newport Beach, California, 92658; (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 Resolution No. 08- Corona del Mar Business Improvement District 12 0 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 held on the day of MAYOR ATTEST: CITY CLERK ATTACHMENT: Exhibit A (Boundary Map) RI: Resolution No. 08- Corona del Mar Business Improvement District 1.3