HomeMy WebLinkAbout15 - Balboa Village Business Improvement DistrictN CITY OF
ca.
�9[,FOPNP City Council Staff Report
Agenda Item No. 15
June 26, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
APPROVED:
V
TITLE: Resolution No. 2012 - 49: Renewal of the Balboa Village Business
Improvement District for Fiscal Year 2012 -2013
ABSTRACT:
The annual renewal of the Balboa Village Business Improvement District (Balboa
Village BID) requires a public hearing to determine if there is a majority protest against
the levied assessments or a specific improvement, activity or benefit proposed by the
BID for Fiscal Year 2012 -2013.
RECOMMENDATIONS:
1. Hold a public hearing regarding the renewal of the Balboa Village Business
Improvement District.
2. If protests represent less than 50 percent of the total assessment amount, adopt
Resolution No. 2012 - 49 confirming the levy assessment for the Balboa Village
Business Improvement District for Fiscal Year 2012 -2013.
or
If protests represent 50 percent or more of the total assessment, abandon the
proceedings to renew the Balboa Village Business Improvement District.
or
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.
Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District
for Fiscal Year 2012 -2013
June 26, 2012
Page 2
3. Appoint the following tc
Advisory Board:
Craig Batley
Ralph Rodheim
Rita Stenlund
Patrick Moore
Mike Thompson
FUNDING REQUIREMENTS:
the Balboa Village Business Improvement District
Burr White / Balboa Realty
Balboa Boat Rentals
ExplorOcean
Fun Zone Rides
Davey's Locker
The City of Newport Beach, or its approved designee, collects the member
assessments on behalf of the Balboa Village BID and remits the monies back to the BID
for funding the activities listed in its annual report to the Council. In addition to the
assessments, the City's adopted FY 2012 -2013 budget includes sufficient funding for
providing $14,000 in matching funds to the BID.
DISCUSSION:
The Balboa Village BID was formed pursuant to the Parking and Business Improvement
Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500
et seq., for the purpose of financing activities and programs to benefit businesses
located and operating within the area.
In accordance with the 1989 Law, a public hearing must be held each year prior to renewal
of a Business Improvement District. If written protests are received by the owners of the
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. If protests represent less than 50 percent of the total
assessment, the City Council may renew the BID.
During its June 12, 2012 regular meeting, the City Council approved the Balboa Village
BID Fiscal Year 2011 -2012 Annual Report, adopted a Resolution of Intention to levy and
collect assessments for the BID for the 2012 -2013 fiscal year, and set a public hearing for
the BID renewal to take place on June 26, 2012. (Attachment A).
In compliance with the 1989 Law, a public notice of the Resolution of Intention to levy and
collect assessments for the renewal of the Balboa Village BID, and the time and place of
the public hearing, was published in the Daily Pilot newspaper on Saturday, June 16,
2012. It was also posted on the City's website (www.newportbeachca.gov).
11
Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District
for Fiscal Year 2012 -2013
June 26, 2012
Page 3
As of the time this report was published by the City Clerk, no letters of opposition to the
BID renewal had been received by the City. Any subsequent correspondence, with a
tabulation of the protests, will be provided to the City Council at its June 26 meeting.
Therefore, City staff is recommending adoption of Resolution 2012 - 49, a Resolution
Confirming the Levying of Assessments for Fiscal Year 2012 -2013 for the Balboa
Village Business Improvement District. (Attachment B).
The City Council has the authority to appoint an advisory board to the BID. The City
may limit membership on the advisory board to persons that are subject to the BID
assessment. The board is different and distinct from other advisory bodies within the
City and is not appointed in the same manner. The City relies upon the Streets and
Highways Code for BID board appointments rather than Council Policy A -2.
Staff is recommending the appointment of the following to the Balboa Village BID
advisory board:
Craig Batley
Ralph Rodheim
Rita Stenlund
Patrick Moore
Mike Thompson.
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).
Submitted by
Yaa'_�
Tara Finnigan
Resolution No. 2012 - 49: Renewal of the Balboa Village Business Improvement District
for Fiscal Year 2012 -2013
June 26, 2012
Page 4
Attachments: A. June 12, 2012 City Council Staff Report
B. Resolution 2012 - 49, Confirming the Levy of Assessments
•
Attachment A
Agenda Item No. 9
June 12, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
APPROVED:
TITLE: Resolution of Intention to Renew the Balboa Village Business
Improvement District and Levy Assessments in FY 2012 - 2013
ABSTRACT:
The Balboa Village Business Improvement District (Balboa Village BID) Board of
Directors has submitted the BID's FY 2011 - 2012 Annual Report for Council approval
and requested renewal of the BID for FY 2012 - 2013.
RECOMMENDATIONS:
1. Approve the Balboa Village Business Improvement District FY 2011 - 2012
Annual Report.
2. Adopt Resolution 2012 - 41, a Resolution of Intention to renew the Balboa Village
Business Improvement District and levy assessments in Fiscal Year 2012 - 2013
and set the public hearing date for June 26, 2012.
FUNDING REQUIREMENTS:
The City of Newport Beach, or its approved designee, collects the member
assessments on behalf of the Balboa Village BID and remits the monies back to the BID
for funding the activities described in the attached annual report. In addition to the
assessments, the City's proposed FY 2012 - 2013 budget includes sufficient funding for
providing $14,000 in matching funds to the BID.
DISCUSSION:
The Balboa Village Business Improvement District (BID) was formed pursuant to the
Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets
J
Resolution of Intention to Renew the Balboa Village Business Improvement District and
Levy Assessments in FY 2012 - 2013
June 12, 2012
Page 2
and Highways Code Sections 36500 et seq., for the purpose of financing activities and
programs to benefit businesses located and operating in the area. The Balboa Village
BID territory encompasses the area between A Street and Coronado Street on Balboa
Peninsula. (Boundary Map is attached to the Resolution as Exhibit A.)
The Balboa Village BID is nearing the end of its FY 2011 - 2012 and the Board of
Directors has requested renewal of the BID for FY 2012 - 2013. Pursuant to the 1989
Law, an annual report must be prepared and a public hearing must be held prior to the
BID's renewal.
The Balboa Village BID Board of Directors, which serves in an advisory capacity to the
City Council, has prepared and submitted the attached annual report (Attachment A) for
the Council's review and approval. The report includes a summary of the BID's FY 2011
— 2012 accomplishments and revenues as well as its proposed activities and budget for
the new fiscal year. The report does not contain recommendations to alter the BID
boundaries or the method and basis for levying assessments.
Therefore, City staff is recommending adoption of Resolution 2012 - 41, a Resolution of
Intention to renew the Balboa Village Business Improvement District (Attachment B) and
levy assessments in Fiscal Year 2012 - 2013 and setting the public hearing date for
renewing the Balboa Village BID for June 26, 2012.
Staff also wishes to acknowledge Clinton Scott Palmer of BID Systems for his work in
preparing the annual report and assistance in bringing this item forward for Council
review.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act ( "CEQK) 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).
Resolution of Intention to Renew the Balboa Village Business Improvement District and
Levy Assessments in FY 2012 - 2013
June 12, 2012
Page 3
Submitted by:
Tara Finnigan
Attachments: A. FY 2011- 2012 Balboa Village BID Annual Report & FY 2012 -2013
Priorities and Budget
B. Resolution of Intention 2012 - 41
I
BALBOA VILLAGE BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2011 -2012 ANNUAL REPORT
This is the annual report for the sixteenth year of the Balboa Village Business Improvement
District, as required by Section 36533 of the California Streets and Highways Code.
1.) Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries.
2.) Improvements and Activities Planned for the Fiscal Year of July 1, 2012 to June 30,
2013
The following are activities planned for the new fiscal year:
W ebsite
The BID is looking to completely redesign its existing website and to start a
comprehensive, web -based marketing program. It is looking to establish a more
reliable content generation system as well as looking at such items as quick
response codes and other interactive technology links to the site.
Holiday Events and Decorations
The BID hangs bows and wreaths during the period between Thanksgiving and
Christmas, and has begun a tradition of a community holiday tree lighting, horse
drawn wagon rides and merchant window - decorating by the children of
Newport Elementary School.
Special Events
A third annual Lexus Newport to Ensenada Yacht Race Kickoff event, in
conjunction with ExplorOcean / Newport Harbor Nautical Museum, NOSA and
Visit Newport Beach, is scheduled in April.
Parking Lot Up rg ades
The BID will continue reimbursing the City for excess costs for building an
entrance sign and up lighting in the Palm parking lot. This is budgeted to be
$15,000, paid over 10 years. This will be the second year the BID has paid for
the lighting. The BID wants to work with the City to establish a parking
management district and receive a fair share of parking revenue to be used to
enhance the village.
Advertising
Print advertising will be tied to response mechanisms on the website, and a
campaign of using print media to advertise special events will be implemented
in conjunction with the special events coordination.
Banner Program
The BID has contracted with a display company to fly banners from the light
standards on Balboa Avenue during the summer season to create a sense of
place and destination.
Annual Meeting
An annual meeting will be scheduled in late April and the BID will provide
refreshments.
Administrative Costs
Bank service charges are anticipated.
3.) The Cost of These Activities Is Projected as Follows:
W ebsite
$4,140
Parking Lot Upgrades
$1,500
Holiday Decorations
$5,600
Special Events
$10,000
Annual Meeting
$ 500
Advertising
$6,000
Banner Program
$3,000
Administrative Costs
$1,400
TOTAL
$32,140
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.
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 Newport Beach
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
KJ
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 2011 -2012
It is estimated approximately $1,200 will be carried over from Fiscal Year 2011-2012 to
Fiscal Year 2012 -2013.
6.) Sources of Contributions From Other Than Levy
The BID estimates that there will be approximately $14,000 contributed to the BID from
the City of Newport Beach.
7.) Past Year Accomplishments
The Fiscal Year of 201 1 -2012 was a successful one for the District. The BID instituted
and completed the following projects:
• Continued holiday d €cor program, including a community holiday tree and
storefront painting by Newport Elementary School students. Hayride and music
programs were also included.
• Distribution of promotional brochures to local /regional hotels.
• Maintained the website.
• Hung banners along Balboa Boulevard during the summer season.
• Advertised in various print publications and brochure distribution.
• Sponsored a celebration in collaboration with ExplorOcean / Newport Harbor
Nautical Museum, NOSA, and Visit Newport Beach the weekend before the start
of the Newport to Ensenada Race.
Fiscal Year 2011- 2012 District Revenues
During the fiscal year, the BID received approximately $18,500 in member assessments,
and had a prior period holdover of $2,077. The City provided $14,000 in matching funds.
The BID spent approximately $29,612 for approved activities and anticipates spending
another $3,000 before renewal.
It is anticipated that a remaining balance of approximately $1,500 will be carried over into
the new 2012 -2013 fiscal year budget.
The merchants of Balboa Village want to thank the City Council for their financial support and
efforts on behalf of the BID.
it
/0
Balboa Village
Business Improvement District
Priorities and Budget Outline
July 1, 2012 — June 30, 2013
Income Amount
Funds Available FISCAL FY End 2011 — 2012
$ 1,200
Funds to be Collected FY 2012 -2013
$17,000
Anticipated Matching Funds from City
$14,000
Total Available Funds $32,200
Priorities
Amount
Website
$4,140
Parking Lot Upgrades
$1,500
Holiday Decorations
$5,600
Special Events
$10,000
Annual Meeting
$ 500
Advertising
$6,000
Banner Program
$3,000
Administrative Costs
$1,400
TOTAL EXPENDITURES $32,140
4
RESOLUTION NO. 2012 -41
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
RENEW THE BALBOA VILLAGE BUSINESS
IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS
FOR THE FISCAL YEAR OF JULY 1, 2012 TO JUNE 30,
2013, AND FIX THE TIME AND PLACE OF A PUBLIC
HEARING.
WHEREAS, the Balboa Village 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
"1989 Law "), which requires an annual report to be filed and approved by the City
Council for each fiscal year; and
WHEREAS, the Advisory Board, known as the Balboa Village Business
Improvement Board of Directors, has prepared an Annual Report for the 2011 -2012
fiscal year which is on file in the Office of the City Clerk; and
WHEREAS, on June 12, 2012, the Balboa Village 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
Balboa Village Business Improvement District (BID) for fiscal year 2012 -2013 pursuant
to the 1989 Law.
Section 2: The City Council hereby declares the intention to levy
assessments for the BID for the fiscal year July 1, 2012 to June 30, 2013 pursuant to
the 1989 Law. 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.
Resolution No. 2012 - 41
Balboa Village Business Improvement District
2
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 BID shall be
100 percent of the annual business license tax as established
pursuant to Chapter 5.08 of the Newport Beach Municipal Code.
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
Newport Beach 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. The assessment for new businesses shall be pro -rated
according to the number of full months remaining in 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 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 Balboa Village
Business Improvement District Fiscal Year 2011 -2012 Annual Report, which is on file
with the Office of the City Clerk.
Section 6: The location of the BID will remain the same: Between A
Street and Coronado Street on the Balboa Peninsula, as set forth with greater
specificity in the map attached as Exhibit A.
Resolution No. 2012 - 41
Balboa Village Business Improvement District
13
3
BE IT FURTHER RESOLVED, that the City Council of the City of Newport
Beach shall conduct a public hearing on June 26, 2012 at 7 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 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 the 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 BID renewal may be obtained
at the City Manager's Office, 3300 Newport Boulevard, Newport Beach, CA 92663; 949-
644 -3035.
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 12th day of June, 2012.
ATTEST:
Leilani Brown, City Clerk
Attachment: Exhibit A (Boundary Map)
Nancy Gardner, Mayor
Resolution No. 2012 - 41
Balboa Village Business Improvement District
/
Vol'/ <fp\
aooi ILOL -rep, i
oaf
BpOf a G�
B W 0 pe
pp!
CaO Oe
oL B•n ° , /
m
i
1 dl /
Pro \��`�O ,•m., � '� / /.
/ P g ♦ CL` g /
i� �3fp ` \IBO 1 /Si
�4 mil �' -: ep <\�°F•' 0`r< 1S,�� o° !Jj / /f/ / .'-1
F
/, ^PF/ Jp'� Oaf nk• o1�1NSbM
P ,
Cd
E[C•alD W� 1d`S 'ti \�Bp;. .] 3ie���l� \BiD � % /
LQ. %'Ieal
CD
9LC
1S pONbNb L :. rt. ae`yc" 8q tqs J%
�L Apr _� rte• ' �B �r / v
e 1
212. ag ` Be• O0 -b"'o
01t
9:r
eK
LL
m
oz 8� ay ro^ ft 1 LO m,
SOt H�ya .slit 2lt �
ns\ �'if Eq 0Lt � V
m
,�: :Ept es�• � J m
.k
i'
1,5
Attachment B
RESOLUTION NO. 2012- 49
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH CONFIRMING THE LEVYING OF
ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2012 TO
JUNE 30, 2013 FOR THE BALBOA VILLAGE BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, on June 12, 2012 the Balboa Village Business
Improvement District annual report was filed and approved by the City Council;
WHEREAS, on June 12, 2012 the City Council adopted and
published a Resolution of Intention declaring the intention to levy assessments
for the Balboa Village Business Improvement District for fiscal year July 1, 2012
to June 30, 2013; and
WHEREAS, a public hearing regarding the renewal of the Balboa
Village Business Improvement District was held on June 26, 2012 without a
majority protest.
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 12, 2012, for the Balboa Village Business Improvement
District for the fiscal year July 1, 2012 to June 30, 2013.
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 26th day of June 2012.
ATTEST:
Leilani Brown, City Clerk
Nancy Gardner, Mayor
Resolution No. 2012 - 49
Balboa Village Business Improvement District
13