HomeMy WebLinkAbout05 - Marine Avenue Business Improvement DistrictCITY OF NEWPORT BEACH
CITY COUNCIL STAFF REPORT
Agenda Item No. 5
November 12, 2003
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Community & Economic Development, Planning Department
George A. Berger, AICP, Program Manager
949/644 -3207. gaberger @city.newport- beach.ca.us
SUBJECT: Marine Avenue Business Improvement District Renewal: Annual Report
for Fiscal Year 2003, and Adoption of Resolution of Intention to Levy for
Fiscal Year 2004.
ISSUE:
Annual renewal of the Marine Avenue Business Improvement District.
RECOMMENDATION:
1. Approve Marine Avenue Business Improvement District 2003 Annual Report; and
2. Adopt the Resolution of Intention and set the public hearing for December 9, 2003.
DISCUSSION:
Background:
The Marine Avenue Business Improvement District (BID) is nearing the end of its eighth
year of operation and requests renewal of the District for the fiscal year January 1 to
December 31, 2004. The Marine Avenue BID was established January 1, 1996. This
report summarizes the District's accomplishments during 2002, its eighth year of
operation, 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 December 9, 2003. 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
Marine Avenue BID Renewal Hearing 1
November 12, 2003
Page 2
be prepared and a public hearing be held each year prior to renewal of the District. A
summary of accomplishments during 2003 and proposed activities for 2004 are provided
below. The District's 2004 activities are proposed to remain the same as in 2003.
Eighth Year District Accomplishments:
The Marine Avenue Business Improvement District has sponsored the following
promotions and activities during the past year.
1. Ongoing steam cleaning of the sidewalks in the BID subject area;
2. Continuation of the printing of a full color Balboa Island brochure with distribution to
hotels and visitor racks throughout Orange County. The merchants have found this
to be a very effective tool in bringing visitors to Balboa Island and shoppers to
Marine Avenue businesses. Also, the BID conducts "co -op" and seasonal event
advertising in The Daily Pilot to solicit the business of local "Newport- Mesa"
shoppers;
3. Christmas decorations and lighting to enhance holiday shopping along Marine Avenue;
4. Participation with the Anaheim/Orange County Visitors and Conference Bureau, to
more widely encourage tourists to visit Balboa Island, and specifically Marine Avenue;
5. Participation with the Newport Beach Conference and Visitors Bureau.
Fiscal Year District Revenues:
During 2003 the district collected approximately $8,348 in member assessments, received
$7,176 in matching funds from the City, and rolled over $5,593 from FY2002. At the end
of FY 2003, the District will have spent approximately $19,617 for approved activities. It is
anticipated that a remaining balance of approximately $1,500 will be carried over into the
2003 fiscal year budget.
Proposed Activities and Budget:
The activities proposed for the next year include marketing, advertising, public relations,
and public improvements and maintenance to benefit Marine Avenue businesses. The
estimated budget for these activities is approximately $22,300. The increasing cost of
service for sidewalk cleaning is discussed at some length in the BID's Annual Report; as
noted, the BID directors would like to make this service more economically feasible, and
are considering a future request for City assistance in their sidewalk cleaning efforts.
Marine Avenue BID Renewal
November
Environmental Review:
Hearing 1
12, 2003
Page 3
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.
Prepared by:
OR' , C)E A. RGER, ICP
C ED Program Maria der
Submitted by:
ff-'WN mm
• • •
With Assistance from:
CLINTON SCOTT PALMER
Cathimarie's Inc., BID Administration
Attachments: Exhibit A - BID Boundary Map
Exhibit B - FY 2003 Annual Report and 2004 Priorities & Budget Outline
Exhibit C - Resolution of Intention to Levy 2003-
EXHIBIT B
MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT
2003 ANNUAL REPORT
This is the annual report for the eighth year of the Marine Avenue Business
Improvement District, as required by Section 36533 of the California Streets and
Highways Code. This report covers the District's accomplishments for the
previous fiscal year (January 1, 2003 to December 31, 2003) and the proposed
activities and budget for the 2004 fiscal year.
The boundaries of the benefit zone will remain the same as in 2004, as set forth
with greater specificity in the map attached as Exhibit A and incorporated herein.
The improvements and activities to be provided for the coming 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 improvements and maintenance activities.
6. The general promotion of retail trade activities.
The estimated cost of providing the proposed improvements and the activities
described in this report is approximately $22,300. The implementation of these
actions is more fully described in the attached Priorities and Budget Outline for
the 2004 fiscal year.
Assessment Overview:
The benefit assessments will be collected by the City in one annual 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 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. 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.
The amount of surplus carried over from the 2003 fiscal year is approximately
$4,500 at the end of the first ten months of the fiscal year. It is anticipated the
balance will be approximately $1,500 at the fiscal year end, which is December
31, 2003.
The Board of Directors of the Marine Avenue Business Improvement District 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
2003 budget.
Sidewalk Cleaning:
It should be noted that 59% of the anticipated FY 2004 BID funds will be
allocated for use for sidewalk cleaning. This is an increase from approximately
47% in FY 2003. The businesses of the BID area view this service as critical,
since Marine Avenue is a main shopping center for Balboa Island and a wider
visitor /tourist community; therefore, the BID has diligently pursued economies of
scale to secure it.
In 2003, this entailed significantly reducing the frequency of sidewalk cleaning
when the long -term vendor – T.J.'s Services – raised their price from $750 to
$975 per cleaning to accommodate for recently- enacted environmental/water
quality mandates. In an attempt to maximize the BID's ability to provide for the
continuation of long -term advertising and promotional activities, the BID Board of
Directors negotiated a new contract with Recovr -X, the City's vendor for sidewalk
cleaning in Balboa Village and for spot - cleaning city -wide, saving $100 per
cleaning ($875 per cleaning x 15 cleanings per year). However, due to the same
environmental quality considerations, the contract with Recovr -X also entailed an
increase in the total yearly cost of maintenance —for the first time being over half
of the BID's total budget. Although maintenance is an approved expenditure
under the definition of the BID, it does significantly decrease the amount of funds
available for advertising and promotion.
PA
2003 Accomalishments
Among the Marine Avenue Business Improvement District accomplishments
during 2003 are the following:
1. Distribution of a full color Balboa Island brochure to hotels and visitor racks
throughout Orange County. The merchants have found this to be a very
effective tool in bringing visitors to Balboa Island.
2. Christmas decorations and lighting to enhance holiday shopping along Marine
Avenue
3. Participation with the Anaheim /Orange County Visitors and Conference Bureau
to more widely encourage county -wide tourists to visit Balboa Island
4. Participation with the Newport Beach Conference and Visitors Bureau
5. Ongoing cleaning of the sidewalks in the subject area.
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
January 1, 2004 - December 31, 2004
Funds Available FY End 2003 $ 1,500
Funds to be Collected January 2004 $12,500
Anticipated Matching Funds from City $ 9,800
Total Available Funds $ 22,300
Priorities Percent of Budget Amount
1. Sidewalk Cleaning 59% $13,125
2. Marketing 34% $ 7,475
• Reprint Balboa Island Brochure
• Distribute to local Hotels and Visitor Information Racks
3. Memberships 5% $ 1,200
• Newport Beach Visitor and Convention Bureau
• Anaheim Convention and Visitor's Bureau
5. Administration 2% $ 500
• Meeting Announcements
• Minutes, Agendas and Mailings to Members
4
EXHIBIT C
RESOLUTION NO. 03-
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 JANUARY 1, 2004 TO DECEMBER 31, 2004, 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 Fiscal
and Calendar Year 2003 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 improvements
and activities to be provided for 2004, the area boundaries, and the annual
assessment within the District.
Section 2: The City Council hereby declares it intention to renew
the Business Improvement District for the fiscal year January 1, 2004 to
December 31, 2004 pursuant to the Act.
Section 3: 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 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 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. Hair stylists
2. Nail technicians
3. Real estate agents
D. 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.
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. An owner of more than one business within the District
shall only be required to pay the assessment for the largest business, and shall
be exempt from assessments on additional businesses within the District.
Resolution No. 03 -_
Marine Avenue Business Improvement District
Section 8: 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 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 improvements and 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 December 9, 2003 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, 92658. Telephone (949) 644 -3225.
Resolution No. 03 -_
Marine Avenue Business Improvement District
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 2003.
MAYOR
ATTEST:
CITY CLERK
ATTACHMENT: Exhibit A - Boundary Map
Resolution No. 03 -_
Marine Avenue Business Improvement District