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HomeMy WebLinkAbout30 - Marine Avenue Business Improvement DistrictCITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 30 December 9, 2002 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Community & Economic Development, Planning Department George A. Berger, AICP, Program Manager Phone: 949/644 -3207. E -mail: gaberger @city.newport- beach.ca.us SUBJECT: Marine Avenue Business Improvement District: Conduct public hearing and adopt Resolution Confirming the Levying of Assessments for Fiscal Year2004. ISSUE: 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. 2003 - confirming the Marine Avenue Business Improvement District Annual Report and levying the BID assessment for the 2004 calendar year. b. If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the District. DISCUSSION: Background: On November 12, 2003 the City Council held a public meeting, approved the Marine Avenue Business Improvement District 2003 Annual Report and adopted a Resolution of Marine Avenue BID Renewal December 9, 2003 Page 2 Intention to levy and collect assessments for the District for Fiscal Year 2004, which begins on January 1st, 2004. Details regarding the proposed renewal of the District and annual report are provided in the November 12, 2003 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. Environmental Review: Not subject to CEQA, as the activity is not a project, as defined in Section 15378(b)(4). Public Notice: The Resolution of Intention to Levy —Res. No. 2003- 58—was published in the Daily Pilot on November 29, 2003. Funding Availability: Business Improvement District matching funds are included in City Budget Account No. 2720 -8250. Submitted by: L SHARON Z. WOO Assistant City M ager Attachments: Resolution No. 2003- Prepared by: � I U=.a- HE , . IV Y � - •� . With Assistance from: CLINTON SCOTT PALMER Cathimarie's Inc., BID Administration RESOLUTION NO. 2003- A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JANUARY 1, 2004 TO DECEMBER 31, 2004 FOR THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT. WHEREAS, the Advisory Board has prepared an Annual Report for the 2003 fiscal year which is on file in the office of the City Clerk; and WHEREAS, on November 12, 2003 the City Council adopted and published a Resolution of Intention declaring the intention to levy assessments for the Marine Avenue Business Improvement District for the fiscal year January 1, 2004 to December 31, 2004; and WHEREAS, a public hearing regarding the renewal of the Marine Avenue Business Improvement District was held on December 17, 2003 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 November 12, 2003 for the Marine Avenue Business Improvement District for the fiscal year January 1, 2004 to December 31, 2004. 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 2003. Resolution No. 2003-_ Marine Avenue Business Improvement District CITY OF NEWPORT BEACH je 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 OL 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 Hearing 1 November 12, 2003 Page 3 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. Prepared by: LG ORCjE A. BERGER, ICP C,& ED Program Manager Submitted by: PIP 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- 0 ., 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 0 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 W 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. • O. 11 • 2003 Accomplishments: 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 v 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 OL • • EXHIBIT C 0 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. • s 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 r] u