HomeMy WebLinkAbout16 - Corona del Mar Business Improvement District,EwcoRr
CITY OF
NEWPO IF BEACH
c9Cl FO Rx`P City Council Staff Report
Agenda Item No. 16
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: A
TITLE: Resolution No. 2012 - 50: Renewal of the Corona del Mar Business
Improvement District for Fiscal Year 2012 -2013
ABSTRACT:
The annual renewal of the Corona del Mar Business Improvement District (Corona del
Mar 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 Corona del Mar Business
Improvement District.
2. If protests represent less than 50 percent of the total assessment amount, adopt
Resolution No. 2012 - 50 confirming the levy assessment for the Corona del Mar
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 Corona del Mar 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 - 50: Renewal of the Corona del Mar Business Improvement
District for Fiscal Year 2012 -2013
June 26, 2012
Page 2
FUNDING REQUIREMENTS:
The City of Newport Beach, or its approved designee, collects the member
assessments on behalf of the Corona del Mar 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 $38,000 in matching funds to the BID.
DISCUSSION:
The Corona del Mar 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 Corona del Mar
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).
A public notice of the Resolution of Intention to levy and collect assessments for the
renewal of the Corona del Mar BID and the time and place of the public hearing was
published in the Daily Pilot newspaper on June 16, 2012. It was also posted on the City's
website (www.new ortbeachca.aov).
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.
Resolution No. 2012 - 50: Renewal of the Corona del Mar Business Improvement
District for Fiscal Year 2012 -2013
June 26, 2012
Page 3
Therefore, City staff is recommending adoption of Resolution 2012 - 50, a Resolution
Confirming the Levying of Assessments for Fiscal Year 2012 -2013 for the Corona del
Mar Business Improvement District (Attachment B).
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
dl � JZ4- > cacti_
Tara Finnigan
Attachments: A. June 12, 2012 City Council Staff Report
B. Resolution 2012 - 50, Confirming the Levy of Assessments
Attachment A
= CITY OF
SEW �'QT
NEWPORT BEACH
°iL F City Council Staff Report Agenda Item No. 10
June 12, 2012
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Managers Office
Dave Kiff, City Manager
949 -644 -3002, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
APPROVED: 0,
TITLE:
Resolution of Intention to Renew the Corona del Mar Business
Improvement District and Levy Assessments in FY 2012 - 2013
ABSTRACT:
The Corona del Mar Business Improvement District (Corona del Mar 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 Corona del Mar Business Improvement District FY 2011 - 2012
Annual Report.
2. Adopt Resolution 2012 - 42, a Resolution of Intention to renew the Corona del
Mar 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 Corona del Mar 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 $38,000 in matching funds to the BID.
Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in FY 2012 - 2013
June 12, 2012
Page 2
DISCUSSION:
The Corona del Mar Business Improvement District (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 in the area. The Corona del Mar
BID territory encompasses the area generally located on East Coast Highway from
Hazel Drive to Avocado Avenue in Corona del Mar. (Boundary Map is attached to the
Resolution as Exhibit A.)
The Corona del Mar 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 Corona del Mar 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 - 42, a Resolution of
Intention to renew the Corona del Mar Business Improvement District (Attachment B)
and levy assessments in Fiscal Year 2012 - 2013 and setting the public hearing date for
renewing the Corona del Mar 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 ( "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, Califomia Code of Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or
indirectly.
Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in FY 2012 - 2013
June 12, 2012
Page 3
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:
�� y
Tara Finnigan
Attachments: A. FY 2011- 2012 Corona del Mar BID Annual Report & FY 2012 -2013
Priorities and Budget
B. Resolution of Intention 2012 - 42
CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2011 -2012 ANNUAL REPORT
This is the annual report for the sixteenth year of the Corona del Mar 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.) Improvement and Activities for the Fiscal Year of July 1, 2012 to June 30,
2013
The following activities are planned for the new fiscal year:
Lane Reduction
As part of the CdM Vision Plan, the narrowing of Coast Highway from
three lanes to two will be moved to before Avocado Avenue from its
current location at Carnation Street, resulting in an additional area at
MacArthur and Coast Highway for greater pedestrian access. The BID
seeks to cost share with the City for a demonstration project to research
actual traffic benefits from the lane reduction using striping and cones.
Marguerite Proiect
The Board seeks to develop various improvements in landscaping,
strectscape, and other items to continue creating a sense of identity for the
village at the intersection of Marguerite and Coast Highway.
Parking Proiect
Parking in the village needs to be addressed further, especially in light of
recent studies done by consultants and to address concerns of both
business owners and residents alike. A program of research and education
needs to be developed to focus the parking issue and develop an outreach
effort to all parties concerned about the preconceptions and realities of
parking.
2020 Vision Plan
The Board continues to reevaluate and revise the 2020 Vision Plan.
Subcommittee meetings to develop new objectives will continue to be
held. Efforts will continue to inform business and residential communities
of the findings of the board.
Tree Wells
The BID will continue the extended maintenance agreement with Park
West Landscape to assure the proper care and cultivation of tree we][
areas.
Plaza Upkeep
According to the Memorandum of Understanding with the City of
Newport Beach, the BID is responsible for long -term maintenance of the
facilities at the Centennial Plaza at Coast Highway and Marguerite. The
BID will repair and replace various elements of the Plaza as needed.
Landscaping
The BID will continue to provide landscape maintenance for the
unplanted tree wells, the intersection of Marguerite and Coast Highway,
and the Centennial Plaza. The District will also pay for the upkeep and
repair of the irrigation backflow valves that water the street trees.
Outreach
The BID will provide funds for holding the Annual Meeting, as well as
other public relations events and for mailings as needed.
Holiday Decor
The BD will work with DekraLite to install the holiday decorations,
lighting, and banners as it has in the past years.
Banner Program
The BID will continue the rotating banner program to highlight the CdM
5K, the Coastline Classic Car Show, and the Christmas Walk.
Christmas Walk
The BID will contribute funds to the CdM Chamber to sponsor the
Christmas Walk.
Marketing_ through CdM Chamber
At this point, an existing contract with the Corona del Mar Chamber of
Commerce for marketing efforts may be extended, or a new marketing
provider may be selected to either renew existing programs or develop
new ones.
Administrative Costs
The BO) will continue to pay bank service fees as well as pay for any
ancillary mailings or inserts into billing.
2
Dolphins
The BID will continue to pay for the seasonal decoration of the Dolphin
topiary at the intersection of Marguerite and Coast Highway.
3.) The Cost of These Activities is Projected as Follows:
Cane Reduction
$15,000.00
Marguerite Project
$15,000.00
Parking Project
$ 8,200.00
Landscaping
$19,200.00
Plaza Upkeep
$ 500.00
Outreach
$3,500.00
Holiday Decor
$24,000.00
Banner Program
$ 8,400.00
Christmas Walk
$ 3,000.00
Marketing
$46.098.00
Administrative Costs
$ 600.00
Dolphins
$ 500.00
TOTAL
5143,998.00
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 fifty percent (150 %) of the
City's annual business license fee as established pursuant to Chapter 5.08 of the
Newport Beach 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 Newport Beach
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 another
person shall be exempt from this assessment:
I. Hairstylists
2. Nail technicians
3. Real estate agents
3
Asscssments 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 that approximately $15,000 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 $38,000 contributed to the
BID from the City of Newport Beach.
7.) Past Year Accomplishments
The Fiscal Year of 2011 -2012 was a successful one for the District. The BID
instituted and completed the following projects:
• Designed and installed tree well plantings for 180 tree wells throughout the
Village along Coast Highway.
• In cooperation with the City, paid for a design study and public outreach
campaign to engineer and landscape the "squeeze lane" at MacArthur and
Coast Highway, resulting in a conceptual plan approved by the City Council
and ready for detailed traffic engineering studies.
• Wrapped up the CdM VIP Card program promoting CdM businesses primarily
to local residents.
• Maintained the health of the 200 Palms and Hong Kong Orchids along the
Coast Highway right -of -way and paid to maintain the planters & irrigation
systems.
• Installed holiday ddeor in the medians at Marguerite and Coast Highway and
on the streetlights /entrance signs in the village.
• Continued the streetlight banner program to promote CdM- specific events.
• Continued design progress on various items called for in the CdM Vision
Plan.
• Supported CdM Chamber of Commerce events.
• Co- produced the CdM Chamber of Commerce business directory.
• Reevaluated and revised the 2004 Vision Plan to the 2020 Vision Plan.
Community input was solicited at the Christmas Walls and several meetings
were held by a board subcommittee to develop new objectives. Printed
explanatory materials were prepared to present the concepts to the business
and residential communities to help inform and build consensus.
Fiscal Year District Revenues
During the 2011 -2012 fiscal year, the BID collected approximately $97,800 in
assessments from members. Its account balance as of the beginning of the year
was $73;516. The BID received $38,000 in matching funds from the City. The
4
BID has spent approximately $143,767 for approved activities, and anticipates
spending an additional $50,000 by fiscal year end.
The District's current account balance is approximately $65,780 at the end of the
first eleven months of the fiscal year. It is anticipated the balance will be
approximately $15,000 or less at the fiscal year end, June 30, 2012. Revenue
from members in the FY 2012 — 2013 period is projected to be $91,000, with City
matching revenues projected to be $38,000. $143,998 has been allocated for
projected expenses with an anticipated $2 remaining at the end of the 2012 -2013
Fiscal Year.
The merchants of the Corona del Mar BID want to thank the City Council for their
financial support and efforts on behalf of the BID.
5
Corona del Mar
Business Improvement District
Priorities and Budget Outline
July 1, 2012 — June 30, 2013
Income Amount
Funds Available FY End 2011 —2012
$15,000
Funds to be Collected FY 2012 -2013
$91,000
Anticipated Matching Funds from City
$38,000
Total Available Funds $144,000
Priorities Amount
Lane Reduction
$15,000
Marguerite Project
$15,000
Parking Project
$ 8,200
Landscaping
$19,200
Plaza Upkeep
$ 500
Outreach
$ 3,500
Holiday Decor
$24,000
Banner Program
$ 8,400
Christmas Walk
$ 3,000
Marketing
$46,098
Administrative Costs
$ 600
Dolphins
$ 500
TOTAL EXPENDITURES $143,998
6
[a=[-I*] ILI]Iramr•��
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
RENEW THE CORONA DEL MAR 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 Corona del Mar 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 fled and approved by the City
Council for each fiscal year; and
WHEREAS, the Advisory Board, known as the Corona del Mar Business
Improvement District Board, 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 Corona del Mar Business
Improvement District annual report was filed and approved by the City Council.
NOW, THEREFORE, the Clty Council of the City of Newport Beach
resolves as follows:
Section 1: The City Council hereby declares its intention to renew the
Corona del Mar 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.
Resofut ttry \'o. 2012 • i2
Comm del Mar Business Impto�cromt 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
150 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 Corona del Mar
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: Generally
located on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with
greater specificity in the map attached as Exhibit A.
Resolution No. 2012 � 42
Corona del Mar Business Improvement District
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 Managers 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 12t" day of June, 2012.
ATTEST:
Leilani Brown, City Clerk
Attachment: Exhibit A (Boundary Map)
Nancy Gardner, Mayor
Resolution No. 2012 - 42
Corona del Mar Business knprovernent District
Attachment B
RESOLUTION NO. 2012- 50
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 CORONA DEL MAR BUSINESS
IMPROVEMENT DISTRICT
WHEREAS, on June 12, 2012 the Corona del Mar 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 Corona del Mar Business Improvement District for fiscal year July 1, 2012
to June 30, 2013; and
WHEREAS, a public hearing regarding the renewal of the Corona
del Mar 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 Corona del Mar 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 - 50
Corona de] Mar Business Improvement District