HomeMy WebLinkAbout10 - Marine Avenue BID RenewalCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. io
June 8, 2010
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Planning Department
Kathlyn Bowden, AICP; Economic Development Coordinator
949 - 644 -3230, kbowden(a)newportbeachca.gov
SUBJECT: Marine Avenue Business Improvement District Renewal: 2010 -2011
Annual Report and Adoption of Resolution of Intention to Levy for
Fiscal Year 2010 -2011.
ISSUE:
Should the City Council renew the Marine Avenue Business Improvement District for its
14th year of operation, for the BID's fiscal year of July 15t, 2010 to June 30'h, 2011?
RECOMMENDATION:
1. Approve the Marine Avenue Business Improvement District Fiscal Year 2010 -2011
Annual Report; and
2. Adopt the Resolution of Intention to Levy Assessments and set the public hearing for
June 22, 2010.
3. Confirm the Marine Avenue Business Improvement District 2010 Advisory Board, as
nominated by the 2009 BID Advisory Board, as follows:
• Alex Richardson
• Sheri Drewry
• John Robinson
• Anne Moloney
• Eldy Galietta
• Pam Hubbard
HOM Realty
Wilma's Patio
Amelia's Restaurant
Beach Time Realty
Barolo by the Sea
Persimmon Tree
Background
Marine Avenue BID 2010 -2011 Annual Report &
Resolution of Intent to Levy
June 8, 2010
Page 2
The Marine Avenue Business Improvement District (BID) was established January 1,
1996. The District includes the 200 and 300 blocks of Marine Avenue as set forth with
greater specificity in the map attached as Exhibit A. California law requires that an annual
report be prepared and 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 22, 2010.
The Marine Avenue BID is nearing the end of its 2009 -2010 year of operation and
requests renewal of the BID for the fiscal year July 1, 2010 to June 30, 2011. A
summary of accomplishments during fiscal year 2009 -2010 as well as the proposed
activities and budget for the new fiscal period are provided below.
Fourteenth Year District Accomplishments
The Marine Avenue Business Improvement District has sponsored the following
promotions and activities during the past year:
• Installation of artificial turf in Marine Avenue tree wells
• Installation of holiday decor /lighting along Marine Avenue
• Installation of storefront holiday lighting with participating merchants
• Continuation of Balboa Island flag campaign
• Maintained top visited Balboa Island sponsored website
• Placement of advertising in tourist related publications
• Participation with Visitors Bureaus of Newport Beach and Anaheim /Orange
County
Fiscal Year District Revenues
During 2009 - 2010 the District collected approximately $14,500 in member assessments
with $8,600 in additional funds remaining to be collected. Its account balance at the
beginning of the year was $8,688. The City provided $7,000 in matching funds. The BID
has spent approximately $22,500 for approved activities and anticipates spending an
additional $5,200 before renewal. It is anticipated that a remaining balance of
approximately $1,500 will be carried over into the new 2010 -2011 fiscal year budget.
Marine Avenue BID 2010 -2011 Annual Report &
Resolution of Intent to Levy
June 8, 2010
Page 3
Proposed Activities and Budget:
The BID proposes to implement the following programs in the next fiscal year:
• Improvement and maintenance of the balboa - island.net website
• Installation of holiday themed decorations on Marine Avenue
• Creation and promotion of a monthly special event during the Fall, consisting of live
music as a draw to consumers to the District
• Participation with the Anaheim Orange County Visitors' and Convention Bureau
• Installation of wayfinding signs to direct visitors to Balboa Island from strategic
locations
• Placement of advertising in tourist publications, the Newport Beach and Anaheim
Visitor's Guides, and other local publications
• Placement of brochures in certified folder racks at regional hotels
• Installation of decorative banners and /or American flags on Marine Avenue during
the summer months and holiday seasons
The estimated cost of providing the proposed improvements and activities to be
undertaken by the BID in the FY 10 -11 period is approximately $24,800. The
implementation of these actions is more fully described in the attached Marine Avenue
BID Priorities and Budget Outline for the Fiscal Year 2010 -2011.
The Advisory Board of the Marine Avenue 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
2010 -2011 in an approximate amount of $8,500. 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 the City Manager's
recommended budget for 2010 -11 in Account No. 2720 -8250.
Prepared by:
r THLYN BO EN
conomic Development Coordinator
Submitted by:
�, 11 LI P,-v 2- A-ZL
SHARON WOOD
Assistant City Manager
Marine Avenue BID 2010 -2011 Annual Report &
Resolution of Intent to Levy
June 8, 2010
Page 4
With Assistance from:
CLINTON SCOTT PALMER
B.I.D. Systems, Inc., BID Administration
Attachments: Attachment A — FY 10 -11 Annual Report and FY 10 -11 Priorities & Budget
Attachment B — Resolution of Intention to Levy 2010 -
Exhibit A — BID Boundary Map
Attachment "A"
MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2010 -2011 ANNUAL REPORT
This is the annual report for the fourteenth year of the Marine Avenue Business
Improvement District. As required by Section 36533 of the California Streets and
Highways Code, the annual report shall contain the following information:
1) Proposed Changes to the District Boundary
There are no changes proposed to the District boundaries
2) Improvement and Activities for the Fiscal Year of July 2010 to June 2011
The following are activities planned for the new fiscal year:
Improvement of Website
The District will maintain their website, www.balboa - island.net, listing
each of the merchants within the District and containing information
relative to visiting the District and its businesses. The Advisory Board
has identified several improvements, including enhanced merchant
listing, tracking of web visitors, an e- newsletter, and other web
marketing strategies.
Holiday Themed Decorations
The District will decorate public streetlights within the District during
the period between Thanksgiving and Christmas. The District's
successful program of distributing holiday lights to merchants will also
be continued.
Special Events
The District plans to create and promote a monthly special event during
the months of September, October, and November, consisting of live
music as a draw to consumers to the District.
Memberships
The District will continue its membership in the Anaheim Convention
and Visitor's Bureau, allowing the ability to advertise to over 600,000
tourists who contact the AVCB for information.
Wayfindine Si naee
The District will fund individual signs directing visitors to the District at
strategic locations. These signs will be fabricated and installed to the
specifications of the Citywide Wayfinding and Directional Sign
Program.
Advertisine
The District has planned an advertising program for the 2010 -2011 fiscal
year, including quarterly ads in tourist publications distributed to
regional hotels, ads in the Newport Beach Visitor's Guide and the
Anaheim Visitor's Guide, folder distribution, and advertising in local
publications.
Banner Program
During the summer months and holiday seasons, the District will hang
decorative banners and /or American flags from public streetlights in the
District to create a sense of place and destination.
3) The costs of these activities are projected as follows:
Improvement of Website $ 2,500
Holiday Themed Decorations $ 1,200
Special Events $ 4,000
Memberships $ 800
Wayfinding Signage $ 3,300
Advertising $11,800
Banner Program 1,200
TOTAL $24,800
4) The method and basis of levying the assessment shall be as follows:
The benefit assessments will be collected by the City in one installment. 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 (100 %) 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. Persons
operating in one of the following types of businesses, as an independent contractor
in an establishment owned by another person shall be exempt from this
assessment:
2
1„
1. Hairstylists
2. Nail technicians
3. Real estate agents
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.
5) Surplus Carryover from Fiscal Year 2009 -2010
The District estimates that approximately $1,500 will be carried over from Fiscal
Year 2009 -2010 to Fiscal Year 2010 -2011.
6) Sources of Contributions from other than levy
The District estimates that there will be approximately $8,500 contributed to the
BID from the City of Newport Beach.
7) Past Year Accomplishments
The Fiscal Year of 2009 -2010 was a successful one for the District. The BID
instituted and completed the following projects:
• Installation of artificial turf in Marine Avenue tree wells
• Installation of holiday decor /lighting along Marine Avenue
• Installation of storefront holiday lighting with participating merchants
• Continuation of Balboa Island flag campaign
• Maintained top visited Balboa Island sponsored website
• Placement of advertising in tourist related publications
• Participation with CVBs of Newport Beach and Anaheim/Orange County
The merchants of Marine Avenue appreciate the efforts of the City Council and your
continued support of Balboa Island.
3
Marine Avenue
Business Improvement District
Priorities and Budget Outline
July 1, 2010 — June 30, 2011
Funds Available at end of Fiscal Year 2009 — 2010 $ 1,500
Funds to be Collected July 2010 $ 15,000
Anticipated Matching Funds from City $ 8,500
TOTAL AVAILABLE FUNDS $ 25,000
Priorities
Amount
Improvement of Website
$ 2,500
Holiday Themed Decorations
$ 1,200
Special Events
$ 4,000
Memberships
$ 800
Wayfinding Signage
$ 3,300
Advertising
$11,800
Banner Program
$ 1,200
TOTAL EXPENDITURES
$24,800
4
I
Attachment "B"
RESOLUTION NO. 2010-
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, 2010 TO JUNE 30, 2011, 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
the 2010 -2011 fiscal year which is on file in the Office of the City Clerk; and
NOW, THEREFORE, the City Council of the City of Newport Beach
resolves as follows:
Section 1: On June 8, 2010, the Marine Avenue Business
Improvement District annual report was filed and approved by the City Council.
Section 2: The City Council hereby declares its intention to renew
the Marine Avenue Business Improvement District for the 2010 -2011 fiscal year
pursuant to the Act.
Section 3: The City Council hereby declares the intention to levy
assessments for the Business Improvement District for the fiscal year July 1,
2010 to June 30, 2011 pursuant to the Act. Such benefit assessment shall be
unchanged from the previous fiscal year and 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
Resolution No. 10-
Marine Avenue Business Improvement District
2
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 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 if
the business is located in a downstairs space; if upstairs, a flat
$25.00 will be assessed.
Section 4: 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 to be added shall in no event
exceed one hundred percent of the assessment amount due.
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 improvements and activities to be funded by the
benefit assessments shall include only the following:
1. Marketing, advertising, and public relations
2. Public area improvements and maintenance
programs
3. Promotion of public events that are to take place on
or in any public places in the area
4. General promotion of retail trade activities.
5. Administration
The implementation of these actions is more fully described in the Marine
Avenue Business Improvement District Fiscal Year 2010 -2011 Annual Report,
Resolution No. t0-
Marine Avenue Business Improvement District
{ t)
3
which is on file with the office of the City Clerk.
Section 7: 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.
Section 8: This action is not subject to the California
Environmental Quality Act ( "CEQA ") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical
change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of
Regulations, Title 14, Chapter 3, because it has no potential for resulting in
physical change to the environment, directly or indirectly.
BE IT FURTHER RESOLVED, that the City Council of the City of
Newport Beach shall conduct a public hearing on June 22, 2010 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
days before the public hearing.
This resolution shall take effect immediately upon adoption.
Resolution No. 10-
Marine Avenue Business Improvement District
III
Passed and adopted by the City Council of the City of Newport Beach at a
regular meeting held on the day of 2010.
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit A (Boundary Map)
Resolution No. 10-
Marine Avenue Business Improvement District