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Home My WebLink About06 - Newport Beach Restaurant Improvement District 1998 Annual Report and District RenewalCITY OF NEWPORT BEACH e�EW�Rr COMMUNITYANDECONOMIC DEVELOPMENT PLANNING DEPARTMENT 3300 NEWPORT BOULEVARD NEWPORT BEACH, CA 92658 (949) 644 -3200: FAX (949) 644 -3250 Hearing Date: Agenda Item No.: Staff Person: REPORT TO THE MAYOR AND CITY COUNCIL SUBJECT: Newport Beach Restaurant Improvement District 1998 Annual Report and District Renewal November 23, 1998 6 Christy Teague (949) 644 -3207 SUMMARY: The Newport Beach Restaurant Improvement District was established January 1, 1996. This report summarizes the District's accomplishments during its third year of operation, the proposed activities and budget for the coming year and a change in the 1999 assessments. The Newport Beach Restaurant Association 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 14, 1998. ACTION: 2. Overview Approve Newport Beach Restaurant Improvement District 1998 Annual Report; and Adopt the Resolution of Intention and set the public hearing for December 14, 1998. The Newport Beach Restaurant Improvement District is nearing the end of its third year of operation and requests renewal of the District for the fiscal year January 1 to December 31, 1999. The District includes all restaurant establishments within Newport Beach. State 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 1998 and proposed activities for 1999 are provided below. 1998 District Accomplishments The Restaurant Association has sponsored the following promotions and activities during the past year: Publication of an updated, full color Newport Beach Restaurant Guide (100,000 copies) 2. Creation of promotional videos about Newport Beach restaurants which appeared over 500 times on cable channels 3. Participation in the Conference and Visitors Bureau summer tourism promotion Newport Beach Restaurant Association November 23, 1998 Page I 4. Web page development listing all members on Internet on www.newi)ortbeachdining.com 5. Member communications through a Restaurant Association Newsletter by fax or by mail 6. 800# for restaurant information: (877) 4NB -DINE which rings as a separate line at the Conference and Visitors Bureau 7. LEAD /Alcohol Awareness program regularly scheduled for all interested members The total district assessment for the 1998 fiscal year was approximately $44,000. During 1998 the district collected approximately $41,500 and has spent approximately $34,500 for approved activities. It is anticipated that a remaining balance of approximately $7,000 will be carried over into the 1999 fiscal year budget. 1999 Proposed Activities and Budget The activities proposed for the coming year include marketing, advertising, public relations, industry advocacy and member communications to benefit the Newport Beach restaurant industry. The estimated budget for these activities is approximately $43,000. Assessment Collection The benefit assessments are proposed to be modified in 1999 in accordance with increased member services and costs. For restaurants with 11 or more employees the benefit assessment is proposed to be the same as in 1998: equal to the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. For those businesses with 10 or fewer employees the assessment would be increased from a flat $25 per year in 1998 to a flat $50 per year in 1999. Assessments would be collected in one installment at the beginning of the fiscal year and pro -rated for new businesses that open during the fiscal year. The penalty for delinquent payments is equal to that established for delinquent business license taxes 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. Conclusion 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 State law. Submitted by: SHARON Z. WOOD Assistant City Manager Attachments: A al Report aft Resolution of Intention Prepared by: CHRISTY D. TEAGUE, AICP Senior Planner F:l..\B IDS\RES"ACOU NCI L \99 RE NE W ACC -RP'r I .DOC Page 2 NEWPORT BEACH RESTAURANT IMPROVEMENT DISTRICT FY 1999 ANNUAL REPORT This is the third annual report for the Newport Beach Restaurant Improvement District, as required by Section 36533 of the California Streets and Highways Code. The report covers the District's accomplishments during the previous fiscal year (January 1 to December 31, 1998) and the proposed activities and budget for fiscal year 1999. The affected businesses of the benefit zone will be all restaurant establishments within Newport Beach. The improvements and activities to be provided for the fiscal year will be marketing, advertising, public relations, industry advocacy and member communications. The estimated budget for the activities described in this report is approximately $43,000. For establishments with 11 or more employees the benefit assessment shall be equal to the City's annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Due to the expanded services provided each business, for those businesses with 10 or fewer employees the benefit assessment shall be increased to a flat $50 per year, a change from the minimum assessment of a flat $25 per year. The benefit assessments will be collected by the City in one annual installment. Assessments will be pro -rated for new businesses that open during the fiscal year. 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. The amount of surplus to be carried over from the 1998 fiscal year is estimated to be approximately $7,000. At this time the Restaurant Association does not anticipate raising additional funds from other sources during the 1999 fiscal year. Among the Restaurant Association's accomplishments during 1998 are the following: 1. Publication of an updated, full color Newport Beach Restaurant Guide (100,000 copies) 2. Creation of promotional videos about Newport Beach restaurants which appeared over 500 times on cable channels 3. Participation in the Conference and Visitors Bureau summer tourism promotion 4. Web page development listing all members on Internet on www.newportbeachdining.com 5. Member communications through a Restaurant Association Newsletter by fax or by mail 6. 800# for restaurant information: (877) 4NB -DINE which rings as a separate line at the Conference and Visitors Bureau 7. LEAD /Alcohol Awareness program regularly scheduled for all interested members The Newport Beach Restaurant Association appreciates the continued support of the City Council. f: \...\shareftids\rest\counci1 \99 renew \ann rpt.doc _I RESOLUTION NO. 98 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT IMPROVEMENT DISTRICT FOR THE FISCAL YEAR OF JANUARY 1, 1999 TO DECEMBER 31, 1999, MODIFYING THE ASSESSMENT AND FIXING THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Newport Beach Restaurant 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 Year 1999 which is on file in the Office of the City Clerk; and WHEREAS, the Advisory Board has requested the assessments be modifed for Fiscal Year 1999; and WHEREAS, the Act requires the City Council to declare its intention to levy and collect assessments within the District for the next fiscal year. follows: NOW, THEREFORE, the City Council of the City of Newport Beach resolves as Section 1: The Annual Report by the Advisory Board is on file with the City Clerk per State law. The Annual Report contains a description of improvements and activities to be provided for FY 1999, the area boundaries, and the annual assessment within the District. Resolution No. 98- Newport Beach Restaurant Improvement District Resolution of Intention Page 1 Section 2: The City Council hereby declares it intention to renew the Restaurant Improvement District for the fiscal year January l - December 31, 1999 pursuant to the Act. Section 3: The businesses affected by the District will remain the same, i.e., all restaurant establishments within Newport Beach. Section 4: The City Council proposes to levy, impose and order the collection of a benefit assessment upon persons conducting a restaurant business in the District. The assessment for those businesses with 10 or fewer employees shall be increased to $50.00, a change from the minimum of $25.00 assessed last fiscal year. The benefit assessment will remain the same for those establishments with 11 or more employees the assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. Section 5: The benefit assessments shall be collected by the City in one annual installment. Assessments will be levied on the date the annual District renewal becomes effective, and 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 of the assessment amount per month, providing that the penalty to be added shall in no event exceed one hundred percent of the assessment amount due. Section 7: The improvements and activities to be funded by the benefit assessments shall include only the following: Resolution No. 98 -_ Newport Beach Restaurant improvement District Resolution of Intention Page 2 C 1. Marketing, advertising, public relations, industry advocacy and member communications for the benefit of restaurants in Newport Beach. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on December 14, 1998, 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 from 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 activities within the District, those types of improvements or activities shall be eliminated. Further information regarding the proposed Restaurant Improvement District renewal may be obtained at the Newport Beach Planning Department, City Hall, Resolution No. 98 -_ Newport Beach Restaurant Improvement District Resolution of Intention Page 3 3300 Newport Boulevard, Newport Beach, California, 92658 -8915. Telephone (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 and thereon held on the day of 1998. MAYOR ATTEST: CITY CLERK F:\... \S HARED \BIDS\REST\COUNCIL \99RENE W\CC -RESO LDOC Resolution No. 98 -_ Newport Beach Restaurant Improvement District Resolution of Intention Page 4 (/