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HomeMy WebLinkAbout16 - Marine Avenue Business Improvement District== _ f NEWPORT R City Council Staff Report Agenda Item No. 16 June 28, 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department PREPARED BY: James Campbell, Principal Planner (949) 644 - 3210, jcampbell(a)newportbeachca.gov With Assistance from: Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration APPROVED: ];�� (—v TITLE: Marine Avenue Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for the Fiscal Year 2011 -2012 ABSTRACT: Annual renewal of the Marine Avenue Business Improvement District. RECOMMENDATION: 1. Hold public hearing regarding the renewal of the Marine Avenue Business Improvement District; and 2.a. If protests represent less than 50 percent of the total assessment amount adopt Resolution No. 2011 -76 confirming the levy of the BID assessment for the 2011- 2012 fiscal year. OR 2. b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the district. 1 Marine Avenue Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for the Fiscal Year 2011 -2012 June 28, 2011 Page 2 FUNDING REQUIREMENTS: The proposed 2011 -2012 fiscal year budget includes $10,000 funding for this item. It will be expensed to the City account in the Community Development Department, 2720- 8250 DISCUSSION:. Background On June 14, 2011, the City Council held a public meeting, approved the Marine Avenue Business Improvement District 2010 -2011 Annual Report, and adopted a Resolution. of Intention to levy and collect assessments for the District for the 2011 -2012 fiscal year. Details regarding the proposed renewal of the District and annual report are provided in the attached June 14, 2011, staff report. A protest hearing must be held each year prior to renewal of a Business Improvement District. If protests are received from business owners representing 50 percent or more of the total assessment amount, the proceedings to renew the District must be discontinued for at least one year. If protests represent less than 50 percent of the total assessment, the City Council may renew the District. At the time this report was prepared, no letters of opposition to the District had been received. Staff will provide an oral update on any subsequent correspondence and a tabulation of protests at the City Council meeting. Public notice of the protest hearing and the Resolution of Intention to modify the basis to levy and collect assessments for the renewal of the Marine Avenue Business Improvement District has been published in the Daily Pilot in compliance with state law. ENVIRONMENTAL REVIEW: Staff recommends the City Council find 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. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). 2 Marine Avenue Business Improvement District Renewal: Conduct Public Hearing and Adopt Resolution for Renewal of the Business Improvement District for the Fiscal Year 2011 -2012 June 28, 2011 Page 3 Submitted by: Kimberly Brandt, AIlOP Community Develo ment Director Attachments: A. June 14, 2011 Staff Report B. Resolution of Confirmation 2011- 3 11 RESOLUTION NO. 2011 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2011 TO JUNE 30, 2012 FOR THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT. WHEREAS, on June 14, 2010 the MARINE AVENUE Business Improvement District annual report was filed and approved by the City Council; and WHEREAS, on June 14, 2011 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the MARINE AVENUE Business Improvement District for a fiscal year July 1, 2011 to June 30, 2012; and WHEREAS, a public hearing regarding the renewal of the MARINE AVENUE Business Improvement District was held on June 28, 2010 without a protest of majority. NOW, THEREFORE, the City Council of the City of Newport Beach hereby confirms the levy of assessments as described in the Resolution of Intention dated June 14, 2010 for the MARINE AVENUE Business Improvement District for the fiscal year July 1, 2010 to June 30, 2011. 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 June, 2011. Michael F. Henn, Mayor ATTEST: Leilani Brown, City Clerk e 6 �1 L Agenda Item No. _8 June 14. 2011 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community Development Department PREPARED BY: James Campbell, Acting Planning Director (949) 644 -3210, icampbell(c)newportbeachca.gov With Assistance from: Clinton Scott Palmer, B.I.D. Systems Inc., BID Administration APPROVED: TITLE: Marine Avenue Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 ABSTRACT: Renewal of the Marine Avenue Association Business Improvement District (BID) for its 15th year of operation, which includes promotions and activities during the BID's fiscal year of July 1 st, 2011 to June 30th, 2012. 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 28, 2011. 3. Confirm the Marine Avenue Business Improvement District 2011 Advisory Board, as nominated by the 2010 BID Advisory Board, as follows: • Sherri Drewry Wilma's Patio • John Robinson Amelia's I Marine Avenue Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 2 • Anne Moloney • Alexandra Richardson • Pam Hubbard • Eldy Galieta FUNDING REQUIREMENTS: Beach Time Realty HOM Realty Persimmon Tree Barolo by the Sea The current recommended budget includes sufficient funding for this item. It will be expensed to the City account in the Community Development Department, 2720 -8250, and this amount is identical to the funds the City contributed last year. DISCUSSION: The Marine Avenue Business Improvement District (BID) was established January 1, 1996. The BID 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 BID. The BID's Board of Directors, which serves as the BID Advisory Board, requests City Council approval of the Annual Report and scheduling of the public hearing for June 28, 2011. The Marine Avenue BID is nearing the end of its fiscal year 2010 -2011 operation and requests renewal of the BID for the fiscal year July 1, 2011 to June 30, 2012. A summary of accomplishments during fiscal year 2010 -2011 as well as the proposed activities and budget for the new fiscal period are provided below. Fifteenth Year BID Accomplishments The Marine Avenue Business Improvement District has sponsored the following promotions and activities during the past year: • Two concerts on Marine Avenue • Installation of holiday decor /lighting along Marine Avenue • Contributing to the City way finding signage program • Continuation of Marine Avenue flag campaign • Maintained top visited Marine Avenue sponsored website • Placement of advertising in tourist related publications • Participation with CVBs of Newport Beach and Anaheim /Orange County • Participation with Visitors Bureaus of Newport Beach and Anaheim /Orange County N Marine Avenue Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 3 Fiscal Year BID Revenues During 2010 - 2011 the BID collected approximately $15,200 in member assessments with $5,000 in additional funds remaining to be collected. The BID collected $3,550 in cash sponsorships of the concert series. Its account balance at the beginning of the year was $5,300. The City provided $10,000 in matching funds. The BID has spent approximately $25,600 for approved activities and anticipates spending an additional $7,000 before renewal. It is anticipated that a remaining balance of approximately $1,500 will be carried over into the new 2011 -2012 fiscal year budget. 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 • Continue and possibly expand the very successful Marine Avenue Concert series • Participation with the Anaheim /Orange County Visitors' and Convention Bureau • Placement of advertising in tourist publications, the Newport Beach and Anaheim Visitor's Guides, and other local publications • 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 fiscal year 2011 -2012 is approximately $29,650. The implementation of these actions is more fully described in the attached Marine Avenue BID Priorities and Budget Outline for the Fiscal Year 2011 -2012. The Advisory Board of the Marine Avenue Business Improvement District expects to raise approximately $3,600 in concert sponsorships 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 $10,000. 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. ENVIRONMENTAL REVIEW: Staff recommends the City Council find 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 0 Marine Avenue Business Improvement District Renewal: 2010 -2011 Annual Report and Adoption of Resolution of Intention to Levy for Fiscal Year 2011 -2012 June 14, 2011 Page 4 has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). Submitted by: Kimberly Brand , ICP Community De lopment Director Attachments: A. BID Boundary Map B. 2010 -2011 Marine Avenue Annual Report and 2011 -2012 Priorities and Budget C. Resolution of Intention to Levy 2011- 9 11 Attachment "B" MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2010 -2011 ANNUAL REPORT This is the annual report for the fifteenth year of the Marine Avenue Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. 1) Proposed Changes to the BID Boundary There are no changes proposed to the BID boundaries 2) Improvement and Activities for the Fiscal Year of July 2011 to June 2012 The following are activities planned for the new fiscal year: Improvement of Website The BID has an established website, www.balboa - island.net, listing each of the merchants within the BID and containing information relative to visiting the BID and its environs. This website currently has the highest search engine hits for any Balboa Island web address. The Advisory Board has identified several improvements, including enhanced merchant listing, tracking and utilization of web visitors, an e- newsletter, and other web marketing strategies. Holiday Themed Decorations The BID intends to wrap each of the light standards on the Avenue in artificial greenery and holiday lights during the period between Thanksgiving and Christmas. In addition, a previously successful program of distribution holiday lights to merchants will be continued. Concerts The BID plans to continue the very popular Marine Avenue Concert series. These are concerts held on a section of Marine Avenue that is blocked off for an evening and has in the past generated attendance in the hundreds to hear name brand bands. Merchants have reported record setting sales after the events and residents have contacted the board to put additional concerts on. Memberships A membership in the Anaheim Visitor's and Convention Bureau will be continued. This membership affords the ability to advertise to over 600,000 tourists who contact the AVCB for information. 12 Advertising An aggressive and comprehensive advertising program is planned for this fiscal year. Quarterly ads in tourist publications distributed in hotel rooms, ads in the Newport Beach Visitor's Guide and the Anaheim Visitor's Guide, folder distribution, and advertising in local publications will give a good blend of resident and tourist exposure. Banner Program During the summer months and during Holiday Seasons, the BID will fly banners or American flags from the light standards on the Avenue to create a sense of place and destination. Administration Bank service charges will be incurred, as will a D &O policy of insurance for the board members. 3) The cost of these activities are projected as follows: Improvement of Website $1,000 HolidayThemed Decorations $1,000 Concerts $8,600 Memberships $ 900 Advertising $12,650 Banner Program $4,600 Administration 900 TOTAL $26,050 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 of the assessment amount due. Individuals with more than one business entity within the assessment boundaries shall only be required to pay the BID assessment for the largest business, shall be exempt from assessments on additional businesses within the BID, 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 2 13 establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 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 2010 -2011 It is estimated that approximately $1,050 will be carried over from Fiscal Year 2010 -2011 to Fiscal Year 2011 -2012. 6) Sources of Contributions from other than levy The BID estimates that there will be approximately $10,000 contributed to the BID from the City of Newport Beach. It is also estimated that an additional $3,600 will be contributed in sponsorships for the concerts. 7) Past Year Accomplishments The Fiscal Year of 2010 -2011 was a successful one for the BID. The BID instituted and completed the following projects: • Two concerts on Marine Avenue • Installation of holiday decor /lighting along Marine Avenue • Contributing to the City way finding signage program • 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 14 15 Marine Avenue Business Improvement District Priorities and Budget Outline July 1, 2010 — June 30, 2011 Funds Available FY End 2010 — 2011 $ 1,050 Funds to be Collected FY 2011 - 2012 $ 15,000 Anticipated Matching Funds from City $ 10,000 Concert Sponsorships $ 3,600 Total Available Funds $ 29,650 Priorities Amount Improvement of Website $ 1,000 Holiday Themed Decorations $ 1,000 Concerts $ 8,600 Memberships $ 900 Advertising $12,650 Banner Program $ 4,600 Administration $ 900 TOTAL EXPENDITURES $29,650 4 10 17 Attachment °C 1 RESOLUTION NO. 2011- 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, 2011 TO JUNE 30, 2012, 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 WHEREAS, on June 14, 2011, the Marine Avenue 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 Marine Avenue Business Improvement District (BID) for fiscal year 2011- 2012 pursuant to the Act. Section 2: The City Council hereby declares the intention to levy assessments for the BID for fiscal year July 1, 2011 to June 30, 2012 pursuant to the Act. Such benefit assessment 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 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: Resolution No. 11 -- Marine Avenue Business Improvement District IN PAP 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for all other businesses within the BID 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 3: 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 4: The benefit assessments shall be collected by the City in one annual installment, with collections for new businesses in the BID 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 BID's fiscal year. Section 5: 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 take place on or in any public place 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, which is on file with the office of the City Clerk. Section 6: The location of the BID 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 28, 2011 at 7:00 p.m., or Resolution No. 11 -_ Marine Avenue Business Improvement District 19 3 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 BID, the extent of the BID 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 BID which pay fifty percent or more of the total assessments to be levied, no further proceedings to renew the BID 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 BID, 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. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the day of 2011. ATTEST: Leilani Brown, City Clerk ATTACHMENT: Exhibit A (Boundary Map) Michael F. Henn, Mayor Resolution No. 11 -- Marine Avenue Business Improvement District M 21 23