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Home My WebLink AboutFY 2008-2009 Huntington Beach Business Improvement District i CITY OF HUNTINGTON BEACH INTER-DEPARTMENTAL COMMUNICATION ' ECONOMIC DEVELOPMENT DEPARTMENT DATE: SEPTEMBER 15, 2008 SUBMITTED TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL SUBMITTED BY: PAUL EMERY, INTERIM CHIEF ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC :5�A DEVELOPMENT SUBJECT: LATE COMMUNICATION: ADD RECOMMENDED ACTION TO PUBLIC HEARING ITEM NO. 10 (CONDUCT A PUBLIC HEARING AND ADOPT A RESOLUTION FOR THE DOWNTOWN HUNTINGTON BEACH BUSINESS IMPROVEMENT DISTRICT 2008-2009) Please be advised that there are two maps for the City Council to consider with regard to approval of the Resolution Approving an Annual Assessment for Fiscal Year 2008- 2009. Map A, which was approved by the Downtown BID Board and adopted by the Council within the Resolution of Intent on August 18, 2008 includes Helme Antiques in Zone 1 of the Downtown Business improvement District. Map B has not been approved by either the Downtown BID Board nor has been considered by the City Council. It transfers Helme Antiques to Zone 2 of the Downtown Business Improvement District. The map provided for tonight's City Council meeting is Map A. However, the Downtown BID is requesting the adoption of Map B. Due to an error, Map B was inadvertently published and circulated in letter to the affected businesses and the Notice of Public Hearing, instead of Map A. The City Council may go forward with the recommended action to adopt the Resolution, which includes Map A, or may consider an alternative action, which could include modification of the Resolution to include Map B or any other such changes that the Council may so desire. t "� ACnCIa ''eca d AMU Is ul waft efS µ t rtr „ i la �"* ft � .� r ,75tr`?w:-,,,ru„s , ji r ""'M77, !B" �st "o, art O dm _ _ 1.. Cole a rn, 94 41 IX N6 --salAt Comill I UNG a IN ...... -Ag `,^Il Ao,'win: lasI �° t r t U'U--�nl e's Bo I e o'� B September 11, 2008 To honorable city council members: I think we all agree that Tuesday's SCN event has been a very successful event for both the downtown area of Huntington Beach, it's citizens and the city. In order to keep Surf City Nights (SCN) going and growing, we need to continue our partnership. We are asking you to have the Economic Development Department increase their budget to include$72,000 in additional funds to help support SCN. The BID has an annual budget of$96,450. The BID has allocated approximately$35,000 for Surf City Nights which is roughly 1/3 of it's annual budget for the 1 night. Understand that Surf City Nights does not help 100% of the BID members,rather perhaps only 50% of it's membership benefit from this promotion. Everyone enjoys the event and no one wants to see the event go away, however, without your help, it may happen. Please review the following SCN budget for FYE 2008/2009 and see where we have trimmed significant dollars from the budget in an effort to keep Tuesday Nights' SCN going. The partnership that we need from the city would include the barricades which would not be an expense were the bollards that have been discussed these past two years were already in place (roughly$50,000) and our Executive Director's salary, who spends many hours each week working on Surf City Nights, half of her annual salary($22,000). With your help we can continue with Surf City Nights and make it even bigger than it currently is. Please consider these proposals so that we can continue Surf City Nights. Any questions you may have, please feel free to call me on my cell phone at 714-863-9423 any time. Worki ith you ' nership with one another, Steve D iel President Huntington Beach Downtown Business Improvement District Enclosures: 08/09 DHBBID Budget Proposal ; 08/09 SCN Budget Proposal Huntington Beach Downtown Business Improvement District 412 ®live Avenue Ste. 149, Huntington Beach, CA 92648 Surf City Nights (SCN) and Budget - Fiscal Year 2008 - 20019 b paid" by OPERATIONAL COSTS Barricades Set-Up The BlD is requesting the City Equipment Rental/Water cover the costs of placing Barricades Delivery& Pick Up $600 Barricades for this event, in Straight Time Setting up closure $173.20 the absence of the necessary Overtime Taking down closure $170.64 Bollard infrastructure which Weekly Total $943.84 would make these barricades costs unnecessary. Annual $49,080 $0 2-Hour Free Parking Weekly Total $308 Do Away with Free Parking for SCN Annual $16,016 $0 Parking Structure Agreement in the works with Attendants/Extra Lee is for her organization to Restroom Cleanings Weekly Total $100 manage entertainment, day Annual $5,200 $0 porter costs,The City can pickup the tab for any BID to contract directly additional attendants and Two Dayporters with a dayporter service Weekly Total $128 restroom cleaning required Annual $6,528 $0 along with the added revenue BID currently handles from Parking fees. Entertainment directly Weekly Total $500 Annual $25,000 $0 Yo4al Operational 7 1,' zn� 0 00,1!, .,C,6r;ts""fait,SC TT D� ... ....... ASSOCIAT7E n COO 'f Marketing Annual $3,000 Administrative Support Annual $5,000 Organizational Development Staff Annual $44,000 $22,000 Total Annual Costs $145,824 $30,000 Page 1 of 1 3:50 PM Huntington Beach Downtown Business Improvement District 08/16/07 Cash Basis 2009-2009 Budget Proposal October 2008 through September 2009 Oct'07-Sep 08 Oct'08-Sep 09 Ordinary Income/Expense Income Assessments&dues-BID 96,450.00 $96,450.00 RDA Management Agreement 13,500.00 $22,000.00 *Reserves Carried Forward from Prior Year 57,592.16 $59,206.00 Total Income 167,542.16 $177,656.00 Expense Administrative 34,500.00*1 $44,000.00 Consulting/Legal R&D 6,000.00 $5,000.00 Marketing&Advertising 33,450.00-2 $33,450.00 Postage 2,500.00 $2,000.00 Special Events Costs 35,000.00 -3 $30,000.00 Steward Program/Cleaning 10,000.00`4 $15,000.00 Surf City Nights 30,000.00 $30,000.00 Miscellaneous 1,670.00 $2,000.00 Reserves to Carry Forward 14,422.16 $16,206.00 Total Expense 167,542.16 $177,656.00 Net 0.00 $0.00 •1 Included is Executive Director's salary,1/2 of which is directly related to SCN -2 A portion of this budget item is allocated to SCN Marketing&Promotion -3 A portion of this budget item is allocated to SCN event -4 A portion of this budget item is allocated to SCN event Page 1 of 1 (- S, 1 , Council/Agency Meeting Held: Deferred/Continued to: f�Appro�—ved ❑ ditionally pro ed ❑ enied it�r ler s /Signa e n9i.J Council Meeting Date: 9%15/2008 Department ID Number: ED 08-40 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL. ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBER SUBMITTED BY: PAUL EMERY, INTERIM CITY ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONO IC DWELOPMENT SUBJECT: Conduct Public Hearing and Adopt Resolution for the Huntington Beach Downtown Business Improvement District Annual Assessment for Fiscal Year 2008-2009 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: On August 18, 2008, City Council approved Resolution of Intent No. 2008-48 to levy an assessment for the Huntington Beach Downtown Business Improvement District for fiscal year 2008-2009 and authorized the City Clerk to schedule a public hearing. City Council will conduct the public hearing to consider a resolution to approve the annual assessment for the 2008-2009 fiscal year. Funding Source: Fund 710, Downtown Business Improvement District, account 71080101. Recommended Action: Motion to: 1. Conduct the Public Hearing. 2. Adopt City Council Resolution No. 2008- 58 a Resolution of the City Council of the City of Huntington Beach Approving an Annual Assessment for fiscal year 2008-2009 to fund improvements within the Huntington Beach Downtown Business Improvement District. Alternative Action(s): 1. Deny the request to approve the Resolution; or 2. Modify elements of the proposed Resolution, such as: the proposed assessments, activities or improvements to be funded, district boundaries, categories of assessments or benefit zones. /0 REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 9/15/2008 DEPARTMENT ID NUMBER: ED 08-40 Analysis: In June 2002, downtown merchants approached the City of Huntington Beach about forming a Business Improvement District (BID) in the downtown commercial area. On September 7, 2004, the City Council approved Ordinance 3661, establishing the Huntington Beach Downtown Business Improvement District (BID) as a method for marketing and improving the downtown area. In order for the City to levy the BID assessment each fiscal year, the City Council must conduct a public hearing before adopting a resolution confirming the coming year's assessments. On August 18, 2008, the City Council adopted Resolution 2008-50, affirming its intent to approve the proposed assessments for 2008-2009 and setting the public hearing to approve the assessments for September 15, 2008. Copies of the Resolution of Intention were mailed to each business and property owner to be assessed and a notice of public hearing and copy of the Resolution was published in the Huntington Beach Independent on September 4, 2008. The Downtown Huntington Beach Business Improvement District consists of approximately 250 businesses. They elect a seven member Board of Directors at their December meeting. In the past year the BID has been an active participant in the management of Surf City Nights events, and, in May 2008, was a co-recipient of the CALED Award for Economic Development Partnerships for Surf City Nights. Other 2007-2008 Downtown BID accomplishments include securing a Surf City Nights sponsorship in trade from Time Warner valued at $15,000; participation in various downtown events and implementation of the Surf City Idol Contest, Chili at the Beach, and downtown Halloween; creation of a monthly BID newsletter, and development of a work program for BID Ambassadors and the soon-to-be implemented Business Development Committee. The Downtown BID also became a 501(c)(6), and has actively participated in the Downtown Specific Plan Workshops and the Ad Hoc Committee on downtown newsracks and handbills. During the public hearing, the City Council will hear all interested persons for or against levying the assessment. Protests may be made orally or in writing; however, written protests shall be filed with the City Clerk at or before the time fixed for this hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received from the owners of businesses in the proposed area that will pay 50% or more of the assessments, no further proceedings to approve the assessment can be taken for a period of one year. Upon the approval of the Resolution the new assessment formula will become effective as of October 1, 2008. For 2008-2009, there has been no change to either of the two benefit zones, but the assessment for nail/hair/skin stylists in both benefit zones has been changed from $60 to $30. The Annual Report shows that with the proposed change, $96,450 in assessment revenue would be collected to carry out these promotional activities during 2008-2009. The proposed budget submitted by the Downtown BID for Fiscal Year 2008-2009 reflects expenditures of $30,000 for Surf City Nights. The cost of operating Surf City Nights is approximately $108,000 annually. The BID has been informed that there is no agency funding to make up the $78,000 deficit. In addition, the BID budget assumes $22,000 in Agency funding to partially support the cost of the Executive Director and BID administration. -2- 9/3/2008 8:36 AM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 9/15/2008 DEPARTMENT ID NUMBER: ED 08-40 Agency staff has informed the BID that the Agency has not budgeted the $22,000 they are requesting for Fiscal Year 2008-2009. Over time, the BID has managed to consolidate some services and reduce costs of Surf City Nights. It should be noted that without an Agency contribution, it will make it very difficult for the BID to continue Surf City Nights unless they undertake a campaign to secure sponsorships and generate additional revenue to continue the program. Strategic Plan Goal: L-4: "Create an environment that promotes tourism to increase revenues to support community services and transform the city's economy into a destination economy". Environmental Status: Not applicable. Attachment(s): Pa - Numb geo - e o a 1. Resolution No. 2008- 58 , a Resolution of the City Council of the City of Huntington Beach Approving an Annual Assessment Within the Huntington Beach Downtown Business Improvement District for Fiscal Year 2008-2009 2. Resolution No. 2008-48, approved August 18, 2008, A Resolution of the City Council of the City of Huntington Beach Declaring the City's Intention to Levy an Annual Assessment for Fiscal Year 2008-2009 Within the Huntington Beach Downtown Business Improvement District 3. PowerPoint Presentation -3- 9/3/2008 8:01 AM ATTACHMENT # 1 l=r�Ci-7 v / A RESOLUTION NO. 2008-58 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2008-2009 WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at Streets and Highways Code §36500 et seq. (the "Act") authorizes cities to establish parking and business improvement areas for the purpose of imposing benefit assessments on businesses for certain purposes; and The City Council formed a business improvement area, the Huntington Beach Downtown Business Improvement District (the "District"), by the passage of Ordinance 3661 on September 7, 2004. The time has come to continue the existence of the District for fiscal year 2008-2009 by levying assessments on those businesses that benefit from the improvements, The District's Advisory Board has prepared and filed with the City Clerk a report an "Annual Report/Operating Budget 2007-2008 Fiscal Year to Date" and "Proposed Budget for Fiscal Year 2008-2009" (collectively, "Annual Report"); On August 18, 2008 , the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2008-2009 as proposed by the District's Annual Report. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows: SECTION 1. The City Council hereby approves and adopts the Annual Report filed by the Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated herein by this reference, which report includes a proposed budget for Fiscal Year 2008-2009 and a description of the improvements and activities to be provided for Fiscal Year 2008-2009. SECTION 2. The City Council of the City of Huntington Beach hereby authorizes a levy and collection of assessments within the District for fiscal year 2008-2009 as proposed by the Annual Report. The amount of the assessment shall be as per the assessment schedule and map, and is to apply to all businesses in the Downtown District as shown in Exhibit B. SECTION 3. The assessments collected will be used to fund activities to increase commerce in the Downtown District area as described in Exhibit A and incorporated herein. 08-1696/24301 1 Downtown#2 Resolution No.2008-58 SECTION 4. This resolution shall take effect on October 1, 2008 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of e tember 12008 4 Mayor REVIEW AND 'PROVED: INITIATED AND APPROVED: City Admi strator Director of Economic Development APPROVED AS TO FORM: �Cit� orney ✓ 7•Is� 0 � 08-1696/24301 2 Downtown#2 Resolution No.2008-58 Exhibit A Huntington Beach Downtown Business Improvement District Annual Report/Budget 2008/2009 Business Improvement District Renewal This report contains the following: 1. 2007/2Oo8 Annual Report 2. 2007/2oo8 Budget 3. 20o8/2009 Proposed Draft Budget Resolution No.2008-58 2007/2oo8 Huntington Beach Downtown Business Improvement District (HBDBID) 2007/2oo8 Annual Report • BID Operations: -Became a 501C 6 organization -Expanded Board seats from 7 to 9 -Updated By-laws to reflect changes and future growth -Created job descriptions for each board seat -Created Program of Work for Ambassadors and soon to be implemented Business Development Committee -Created a monthly Electronic Newsletter -Posting of all agenda's and Minutes of BID Board meetings and on the BID Website at www.hbdowntown.com -Created a New Member Packet,which is disbursed out upon applying for a business license • Surf City Nights: -Won the CALED Grand Prize"Partnership Award." -Implemented a Surf City Nights Idol Contest -Time Warner Sponsorship(trade)Valued at$15,000 -Provide Information table for BID members,to display information about their products and services -Participated in numerous city Public&Business surveys' • First Chili At The Beach event, some of the proceeds benefiting CHOC Hospital organized by the BID Block Ambassadors • Produced annual Downtown Halloween event, benefiting the community • Events Participating in: -Surf City Fest, city trial street closures (4) -Taste of New Zealand -Surf City USA Marathon- Produced a "Runners Guide" -National Paintball -Partnered in the Woody Car Show -AVP -Light of Light of Love _4tn of July • HBDBID Stakeholders, actively participated in the Downtown Specific Plan Workshops • BID Board Members actively participated in the ongoing downtown news rack problem solving handbill challenge • HBDBID Belongs to the following organizations: -California Downtown Association - National Trust for Historic Preservation I Exhibit A Resolution No.2008-58 3:50 PM Huntington Beach Downtown Business Improvement District 08/16/07 Cash Basis 2008 Budget October 2007 through September 2008 Oct'07-Sep 08 Ordinary Income/Expense Income Assessments&dues-BID 96,450.00 RDA Management Agreement 13,500.00 *Reserves Carried Forward from Prior Year 57,592.16 Total Income 167,542.16 Expense Administrative 34,500.00 ,1 Consulting/Legal R&D 6,000.00 Marketing&Advertising 33,450.00 "2 Postage 2,500.00 Special Events Costs 35,000.00 `3 Steward Program/Cleaning 10,000.00 `4 Surf City Nights 30,000.00 Miscellaneous 1,670.00 Reserves to Carry Forward 14,422.16 Total Expense 167,542.16 Net 0.00 Included is Executive Director's salary,1/2 of which is directly related to SCN `2 A portion of this budget item is allocated to SCN Marketing&Promotion `3 A portion of this budget item is allocated to SCN event `4 A portion of this budget item is allocated to SCN event Exhibit A Resolution No. 2008-58 3:50 PM Huntington Beach Downtown Business Improvement District 08/16/07 Cash Basis 2008-2009 Budget Proposal October 2008 through September 2009 Oct'08-Sep 09 Ordinary Income/Expense Income Assessments&dues-BID $96,450.00 *BID Administrative Services $22,000.00 Reserves Carried Forward from Prior Year(Cash in Bank Account as of 7/29/08) $59,206.00 Total Income $177,656.00 Expense Administrative $44,000.00 Consulting/Legal R&D $5,000.00 Marketing&Advertising $33,450.00 Postage $2,000.00 Special Events Costs $30,000.00 Steward Program/Cleaning $15,000.00 Surf City Nights $30,000.00 Miscellaneous $2,000.00 Reserves to Carry Forward $16,206.00 Total Expense $177,656.00 Net $0.00 The BID is requesting that the Agency provides subsidy for Administrative Services Exhibit A Resolution No.2008-58 PROPOSED 2008-09 Downtown Business Improvement District Assessment Formula Benefit Zone I Retail Businesses Less than 1,000 sq. ft $300 1,001 sq. ft. to 2,500 sq. ft. $600 2,501 sq. ft .to 4,999 sq ft. $900 5,000 sq. ft. or more $1,200 Restaurants Less than 1,000 sq. ft. $300 1,001 sq. ft. to 2,500 sq. ft. $600 2,501 sq. ft. to 4,999 sq. ft $900 5,000 sq. ft. or more $1,200 Hotels Under 20 rooms $180 21-50 rooms $360 51+ rooms $600 Services/Office* First Floor $240 Second floor or higher $120 Real Estate Individual $60 Licensee Cart/Kiosk $60 Nail/Hair/Skin Stylist $30 Banks/ATM $600 Benefit Zone 2 Retail Businesses $300 Restaurants $300 Hotels Under 20 rooms $180 21-50 rooms $360 51+ rooms $600 Service/Office* First Floor $120 Second floor or higher $60 Real Estate Individual $60 Licensee Cart/Kiosk $30 Skin Stylist/Cart/Kiosk $30 Banks/ATM $600 • Assessments Excluded for Apartments, Non-profits, Home based businesses, and Temporary vendors. • Businesses and Non-profit Organizations outside the area may join with the approval of the BID Board by paying the equivalent fee annually. • Non-profit Organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the Downtown BID directly. Exhibit B AO 2'3 N 1:� to 96 Go 'o 4- T—W '77 c "v r10'to wl sin �yc,i 008- 2 Res. No. 2008-58 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) 1, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on September 15, 2008 by the following vote: AYES: Hansen, Hardy, Bohr, Cook, Coerper NOES: Green ABSENT: None ABSTAIN: Carchio Cit Clerk and ex-officio Clerk of the City Council of the City of Huntington Beach, California ATTAC H M E N T #2 RESOLUTION NO 2008-48 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2008-2009 WITHIN THE HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT WHEREAS,the California Legislature, in adopting the Parking and Business Improvement Area Law of 1989 (Streets and Highways Code §36500 et seq) found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism, create jobs attract new businesses and prevent erosion of business districts,and The California Legislature found that cities are authorized to levy assessments on businesses which benefit from those improvements and activities,and A sizeable majority of the downtown businesses within the City of Huntington Beach requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events and The City Council formed a business improvement area, known as the Huntington Beach Downtown Business Improvement District (the 'District') by the passage of Ordinance No 3661 on September 7 2004 The time has come to continue the existence of the District for fiscal year 2008 2009 by levying assessments on those businesses that benefit from the activities,and The District's Advisory Board has prepared and filed with the City Clerk an "Annual Report/Operating Budget 2007-2008 Fiscal Year to Date" and "Proposed Budget for Fiscal Year 2008- 2009"(collectively,"Annual Report") and NOW, THEREFORE the City Council of the City of Huntington Beach does hereby resolve as follows SECTION I The City Council hereby approves the Annual Report filed by the Advisory Board in the City Clerk s office attached hereto as Exhibit A and incorporated herein by this reference which includes a proposed budget for Fiscal Year 2008 2009 and a description of the improvements and activities to be provided for Fiscal Year 2008-2009 SECTION 2 To levy and collect assessments within the District area for Fiscal Year 2008 2009 as per the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference SECTION 3 The type or types of improvements and activities proposed to be funded by the levy of assessments on businesses within the business improvement area are specified in Exhibit A attached hereto and incorporated herein by this reference SECTION 4 A public hearing shall be held before the City Council on September 15, 2008 , at 6 00 p m, or as soon thereafter as this matter may be heard, in the Council Chambers of the°City Hall 2000 Main Street Huntington Beach California at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of 08 1606/24298 1 Downtown#1 Resolution No 2008-48 specified types of improvements or activities 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 Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is made The City Council may waive any irregularity in the form or content of any written protest, and at the public hearing, may correct minor defects in the proceedings A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied, no further proceedings to levy the proposed assessment 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 specified type or types of improvements or activity within the District,those types of improvements or activities shall be eliminated SECTION 5 The City Clerk is hereby directed to provide notice of the public hearing by causing the this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing SECTION 6 Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall,2000 Main Street, Huntington Beach, California 92648, telephone (714) 536-5542, or from the Downtown Huntington Beach Business Association, 412 Olive Avenue,PMB 149,Huntington Beach, CA 92648, (714) 960-8600 SECTION 7 The City Clerk shall mail a complete copy of this resolution of intention by first- class mail to each business owner in this area within seven days after the Council's adoption of this resolution SECTION 8 This resolution shall take effect immediately upon adoption PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 18th day of August 1200 8 Mayor REVIE PROVED 7 INITIATED AND APPROVED City kdmmistrator Director of Economic elopment APPROVED AS TO FORM piftyttorney AW- 1 15 0 0� 08 1606/24298 2 Downtown#1 Resolution No 2008 48 Exhibit A Huntington Beach Downtown Business Improvement District Annual Report/Budget 2008/2009 Business Improvement Distract Renewal This report contains the following 1 2007/20o8 Annual Report 2 2007/20o8 Budget 3 2008/2009 Proposed Draft Budget Resolution No 2008 48 2007/2oo8 Huntington Beach Downtown Business Improvement District (HBDBID) 2007/2oo8 Annual Report • BID Operations Became a 501C 6 organization Expanded Board seats from 7 to g Updated By laws to reflect changes and future growth Created lob descriptions for each board seat Created Program of Work for Ambassadors and soon to be implemented Business Development Committee Created a monthly Electron ic"Newsletter Posting of all agenda's and Minutes of BID Board meetings and on the BID Website at www hbdowntown com Created a New Member Packet,which is disbursed out upon applying for a business license • Surf City Nights Won the CALED Grand Prize"Partnership Award " Implemented a Surf City Nights Idol Contest Time Warner Sponsorship(trade)Valued at$15,000 Provide information table for BID members,to display information about their products and services Participated in numerous city Public&Business surveys' • First Chili At The Beach event,some of the proceeds benefiting CHOC Hospital organized by the BID Block Ambassadors • Produced annual Downtown Halloween event, benefiting the community • Events Participating in Surf City Fest,city trial street closures(4) Taste of New Zealand Surf City USA Marathon Produced a"Runners Guide" National Paintball Partnered in the Woody Car Show AVP Light of Light of Love 4th of July • HBDBID Stakeholders,actively participated in the Downtown Specific Plan Workshops • BID Board Members actively participated in the ongoing downtown news rack problem solving handbill challenge • HBDBID Belongs to the following organizations California Downtown Association National Trust for Historic Preservation Exhibit A Resolution No 2008 48 3 50 PM Huntington Beach Downtown Business Improvement District 08/16/07 Cash Basis 2008 Budget October 20071hrough September 2008 Oct 07 Sep 08 Ordinary Income/Expense Income Assessments&dues BID 96 450 00 RDA Management Agreement 13 500 00 Reserves Carried Forward from Prior Year 57 592 16 Total Income 167 542 16 Expense Administrative 34 500 00 1 Consulting/Legal R&D 6 000 00 Marketing&Advertising 33 450 00 2 Postage 2 500 00 Special Events Costs 35 000 00 3 Steward Program/Cleaning 10 000 00 4 Surf City Nights 30 000 00 Miscellaneous 1 67000, Reserves to Carry Forward 14 422 16 Total Expense 167 542 16 Net 000 1 Included is Executive Directors salary 112 of which is directly related to SCN 2 A portion of this budget Rem is allocated to SCN Marketing&Promotion 3 A portion of this budget item is allocated to SCN event 4 A portion of this budget item is allocated to SCN event Exhibit A Resolution No 2008 48 3 50 PM Huntington Beach Downtown Business Improvement District 08/16/07 Cash Basis 2008-2009 Budget Proposal October 2008 through September 200.9 Oct 08 Sep 09 Ordinary Income/Expense Income Assessments&dues BID $96 450 00 BID Administrative Services $22 000 00 Reserves Carried Forward from Prior Year(Cash in Bank Account as of 7129/08) $59 206 00 Total Income $177 656 00 Expense -Administrative $44 000 00 Consulting/legal R&D $5 000 00 Marketing&Advertising $33 450 00 Postage $2 000 00 Special Events Costs $30 000 00 Steward Program/Cleaning $15 600 00 Surf City Nights $30 000 00 Miscellaneous $2 000 00 Reserves to Carry Forward $16 206 00 Total Expense $177 656 00 Net $0 00 The BID is requesting that the Agency provides subsidy for Administrative Services Exhibit A. Resolution No 2008 48 PROPOSED 2008-09 Downtown Business Improvement District Assessment Formula benefit Zone 1 Retail Businesses Less than 1 000 sq ft $300 1,001 sq ft to 2 500 sq ft $600 2 501 sq ft to 4 999 sq ft $900 5 000 sq ft or more $1 200 Restaurants Less than 1 000 sq ft $300 1 001 sq ft to 2 500 sq ft $600 2 501 sq ft to 4 999 sq ft $900 5 000 sq ft or more $1 200 Hotels Under 20 rooms $180 21-50 rooms $360 51+ rooms $600 Services/Office* First Floor $240 Second floor or higher $120 Real Estate Individual $60 Licensee Cart/Kiosk $60 Nall/Hair/Skin Stylist $30 Banks/ATM $600 Benefit Zone 2 Retail Businesses $300 Restaurants $300 Hotels Under 20 rooms $180 21-50 rooms $360 51+ rooms $600 Service/Office* First Floor $120 Second floor or higher $60 Real Estate Individual $60 Licensee Cart/Kiosk $30 Skin Stylist/Cart/Kiosk 1 $30 Banks/ATM. 1 $600 • Assessments Excluded for Apartments, Non-profits, Home based businesses; and Temporary vendors • Businesses and Non-profit Organizations outside the,area may join with the approval of the BID Board by paying the equivalent fee annually • Non-profit Organizations within the BID Assessment Zone can voluntarily participate by paying $30 to the Downtown BID directly Exhibit B f 1 Pe"Orange / t jai Owl Ll CHIC �i �I ))t 11 Huntington Beach Downtown Business Improvement District a ! Boundaries and Benefit Zones 1 & 2 2008-2009 EXHIBITS Resolution No 2008-48 Res No 2008-48 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss CITY OF HUNTINGTON BEACH ) I JOAN L FLYNN the duly elected qualified City Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of said City do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on August 18, 2008 by the following vote AYES Hansen Hardy Bohr Cook, Coerper Green, Carchio NOES None ABSENT None ABSTAIN None City lerk and ex-officio &6rk of the City Council of the City of Huntington Beach California ATTACHMENT #3 un ,• n ®n Beach ®wn ®wn usi• n ss Irrtprove ent n 0 is r'c enewal FY 2008mw2OO9 ee er 15,, 2008 A gami "I" . ......... Downtown BID ® 2004: Formation of Downtown BID ® Approximately 245 businesses, 300+ property owners ® Elected Board of Directors ® Assessment formula based on benefit zone, business type and size i=/' t 3 0 ii i i'2 / 3 ��: ....,. ✓: �it ,n.., y ��, .. ., �,..,,,,,.,,, �� c. �,. 2008Aw2OO9 Assessme nts ® Tiered schedule ranging from $30-$120o based on: Benefit Zone (tiro Zones) — Business Type ® Square footage (applicable to retail, restaurants, hotels, services/off ice) ® 20o -2009 Change: ® Nail/Hair/Skin Stylist assessment separated from carts/kiosks and reduced from $6o to $30 in both benefit Zones 14 a 0,,,,.,,,,,.o,Y33li olive CO, G. P............... r. asr. OF l ff, ar .......... Bu, -*0 .......... Al............ 14u.nt ' tox. 1A romemlen, t mp to Dow, ---h Wm,- R,us i n I tD, Jlr.. US , 2 It F 1A .......... "lIs 2008#2009, Proposed Bugel 2008w2009 ♦ Total Budget: $1771656 — $ 96,45o anticipated assessments & dues - $ 59,2o6 reserves from zoo?-zoos — Requesting $22, 000 Agency subsidy for Administrative Services * $30, 000 for Surf City Nights — approxirnate cost of $ 1o8 000 x; i Renewal Process ® Scheduling of Public Hearing and Resolution f Intention to L Assessment AdoptedAugust 18, 2008 ® Copies and Notices mailed /published Public r quire consider all protests aginst BID renewal ® Council to consider written protests jr f Op ,tion t® renew not renew ad ust I !� ............. f ar"PER i• .; / .�. /, i 'a: ,.�c Pu,bll*c Hear*ing ® Written protests: ® If written protests are received from affected business owners ®f 50% or more ®f assessments, no f urther proceedings t® consider the B I ® can be considered for one year "'Aa TV .S.e i, 3 ��e7a"" \ ,r 10 // 41, » f; j%' Ale '41 %'.sir �•;>••• .i'" ' Y a i r., k•-�';; 'iis Recommended Act*ion Conduct the public hearing ® Determine percentage of written protests ® if more than 50% of assessments represented, Council Cannot approve or Consider again for one year Consider Resolution to Approve Annual Assessment Within the Huntington Beach Downtown Business Improvement District orM- 011,111"', 01, pa'5%N for 20o812009jr f i RCA ROUTING E INITIATING DEPARTMENT: Economic Development SUBJECT: Conduct a Public Hearing and Adopt a Resolution for the Downtown Business Improvement District 2008/09 COUNCIL MEETING DATE: September 15, 2008 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not A plicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached (] Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETO ED FOR ARDED Administrative Staff Deputy City Administrator Initial City Administrator Initial City Clerk EXPLANATION FOR RETURN,OF ITEM: • RCA Author: slifman Page 1 of 1 Esparza, Patty From: Slifman, Simone Sent: Thursday, September 04, 2008 4:26 PM To: Esparza, Patty Subject: RE: BID's Hmmmm....good question...looks like they didn't do it that way last year, but the BID renewal is effective as of October 1, so we can just go with that. Good catch! Also, I will have the scripts for the mayor to your o i-ce—� before the meeting on the 15tn'. One more thing...I asked Robin whether the possibility exists of putting these public hearings in a specific order because two of them will be done by me (Downtown, Hotel/Motel), and one by Doris (Auto Dealers) and the only one that may take any amount of time will be the Downtown BID. It is unlikely that the Auto Dealers or Hotel/Motel BIDs will have significant comments, but the Downtown BID may take a while due to some outstanding financial issues, so if there are other public hearings that night which will take less time, if it is possible that those will appear first in the order that might be best. It's my understanding that there are others in charge of how items are ordered on the Agenda, but I thought that if your office had this information in advance it may be helpful for all involved. Thanks again! Simone From: Esparza, Patty Sent: Thursday, September 04, 2008 4:04 PM To: Slifman, Simone Subject: BID's Hi Simone—I have the Downtown & Hotel/Motel BID RCA's on my desk. The resolution on both of them has a blank in it that I am not sure what it should be. It is Section 4. and states"This resolution shall take effect on ." Is there a special date that should go in there other than the Council meeting date? Thanks! Patty Esparza, CMC Senior Deputy City Clerk City of Huntington Beach 714-536-5260 9/4/2008 CITY OF HUNTINGTON BEACH PUBLIC NOTICE Huntington Beach Independent has been adjudge .PUBLIC HEARING FOR THE HUNTINGTON BEACH DOWNTOWN circulation in Huntington Beach and Orange Count, BUSINESS IMPROVEMENT DISTRICT RENEWAL Court of Orange County,State of California, under A50479. NOTICE IS HEREBY GIVEN THAT the City:Council will hold its Public Hearing on the 2008-2009 renewal of the Huntington Beach Downtown Business Improvement District at its meeting scheduled on September 15,2008 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street,Council Chambers as required by the Parking and Business Improve- �AA®O� ®F ment Area Law of 1989 as approved by City Council in Resolution No 2008-48-as re-printed below: P�1BLICAT101 RESOLUTION COUNCIL 1,1 A RESOLUTION OF THE CITY COUNCIL OF,THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 2008-2009 WITHIN THE n�7 HUNTINGTON BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT STATE OF CA LIFO101`V I WHEREAS,the California Legislature,in adopting the Parking and Business Improvement Area taw of 1989(Streets and Highways Code§36500 et seq.)found that cities are authorized to levy assessments on businesses in order to promote economic revitalization and tourism,create jobs,attract new businesses and prevent erosion of business districts;and 7�T �7 The California Legislature found that cities are authorized to levy assessments on businesses which benefit from" COtLJ lid T 1 OF ORANGE E those improvements and activities;and A"sizeable majority of the downtown businesses within the City of Huntington Beach requested that the City Council commence proceedings under the Parking and Business Improvement Area Law of 1989 to establish a downtown business benefit area within the City of Huntington Beach and to levy a special assessment to promote tourism and tourist related events; am the Citizen of the United S and resident of the Count aforesalC The City Council formed a business improvement area,known as the Huntington Beach Downtown Business y Improvement District(the"District"),by the passage of Ordinance No.3661 on September 7,2004. The time has come to con- the age of eighteen years, and tinue the existence of the District for fiscal year 2008-2009 by levying assessments on those businesses that benefit from the ativities;and c to or Interested In the below entl The District's Advisory Board has prepared and filed with'the City Clerk an"Annual Report/Operating Budget 2007- am a principal clerk of the HU 2008 Fiscal Year to Date'and"Proposed Budget for Fiscal Year 2008-2009"(collectively,"Annual Report");and NOW,THEREFORE,the City Council of the City of Huntington Beach does hereby resolve as follows: BEACH INDEPENDENT, a ne SECTION 1. The City Council hereby approves the Annual Report filed by the Advisory Board in the City eneral circulation tinted and Clerk's office attached hereto as Exhibit A and incorporated hereirrby this reference,which includes a proposed budget for Fis- g , p l cal Year 2008-2009 and a description of the improvements and activities to be provided for Fiscal Year 2008-2009. the City of Huntington Beach, t "'ON 2. To levy and collect assessments within the District area for Fiscal Year 2008-2009 as per the assessment schedule listed in Exhibit B attached hereto and incorporated herein by this reference. Orange, State of California, - -' -SECTION 3., The type or types of improvements and activities proposed to be funded by the levy of as- sessments on businesses within the"business improvement area are specified in Exhibit A,attached hereto and incorporated attached Notice is a true and cot herein by this reference. as was printed and publish( SECTION 4. A public hearing shall be held before the City Council on September 15,2008 at 6:00 p.m.,or as soon thereafter as this matter may be heard,in the Council Chambers of the City Hall,2000 Main Street,Huntington Beach, following date(S): California,at which time the Council will hear all interested persons for or against levying of the assessment,and the furnishing of specified types of improvements or activities. 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 valk date the,particular protest. Any protest pertaining to the regularity or sufficiency of the proceedings shall be in writing and shall clearly set forth the irregularity or defect to which the objection is.made.The City Council may,waive any irregularity in the form or content of any written protest,and at the public hearing,may,correct minor defects in the,proceeding's. A written protest may be withdrawn in writing at any time before the conclusion of the public hearing set forth above.If written protests are received by the owners of businesses within the District,which will pay 50%or more of the total assessments to be levied,no further proceedings to`levy the proposed assessment 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 specked type or types of improvements or September 4, 2008 activity within the District,those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is,hereby directed to provide notice of the public hearing by causing this reso- lution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall,2000 Main Street,Huntington Beach,California 92648;telephone(714)53675542;or from the Downtown Huntington Beach Business Association,412 Olive Avenue,PMB 149,Huntington Beach,CA 92648,(714)960-8600, SECTION T" The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION& This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the I declare, under penalty of perju 18th day of August,2008. foregoing is true and correct. PROPOSED2007-08 Downtown Business Improvement District Assessment Formula Benefit Zone� Executed on September 4, 2008 Retail Businesses Less than 1,000 sq.ft. $300 1,001 sq.ft.to 2,500 sq.ft. $600 at Huntington Beach, California 2,501 sq.ft.to 4,999 sq.ft. $900 5,000 sq.ft.or more $1,200 Restaurants Less than 1,000 sq.ft. $300 1,001 sq.ft.to 2,500 sq.ft. $600 2,501 sq.ft.to 4,999 sq.ft. $900 5,000rsq.ft.or more $1,200 i g n at u Hotels Under 20 rooms $180 S � 21-50 rooms $360 51+rooms $600 Services/Office' First Floor $240- Second floor or higher $120 Real Estate Individual Licensee $60 Cart/Kiosk • $60 Nail/Hair/Skin Stylist $30 Banks/ATM $600 Benefit Zone Retail Businesses $300 Restaurants $300 Hotels Under 20 rooms $180 21-50 rooms $360 PROPOSED2007,708 Downtown Business Improvement District Assessment Formula f Huntington Beach Independent has been adjudge genwfi 7r,ne f"' J circulation in Huntington Beach and Orange Count t g g Retail Businesses ` Less than 1,000 sq.ft. $300 Court of Orange County, State of California,under 1,001 sq.ft.to 2,500 sq_ft:' $600 A50479. 2;501 sq.ft,to 4,099 sq,ft. $900 5,000 sq.ft.or more $1,200 Restaurants " Less than d;ft."to000,sq.ft. $300 PROOF ' OF 1,001 sq. 2, ft sq. $600 2,501 sq:ft,to 4,999 899 sq.ft, $goo900 PUBLICATIO] Under , der00 20q.roft,oms or more $18 00 Hotels Under 20 rooms $180 21-50 rooms $360 51+rooms $600 a Services/Office" First Floor. $240. T IFOn NI Second floor or higher $120 STATE OF CAL e 1A' 1�1�1 Real Estate Individual Licensee $60 4 Cart/Kiosk $60 a Nail/Hair/Skin Stylist $30 Banks/ATM $600 Z l l COUNT' OF ORANGE Benefit Iona 2 Retail Businesses $300 0 Restaurants $300 d I am the Citizen of the United S Hotels Under20rooms $180 3 21-50 rooms. $360 resident of the County aforesaic 51+rooms $60o the ears age of eighteen , and Service/Office' First Floor $120 g g y Second floor or higher $60 to or interested in the below ent Real Estate Individual Licensee $60 Cart/Kiosk " $30 1 am a principal clerk of the HU Nail/Hair/Skin Stylist $30 BEACH INDEPENDENT, a ne Banks/ATM $600 general circulation, printed and I "Assessments excluded for apartments,non-profits,home-based businesses and temporary vendors. i •Businesses and non-profit organizations outside the area may join with approval of the BID Board by paying the equivalent fee the City of Huntington Beach, annually.. Orange, State Of Cial If0 rn la, •Non-profit organizations within the BID Assessment Zone can voluntarily participate by paying$30 to the Downtown BID directly. attached Notice is a true and coi •The estimated cost of providind the improvements and activities for Fiscal Year 2008-2009 Is$177,656. as was printed and publish :. following date(s): , , ;• September 4, 2008 �• � x °add.,. � .��um,.,"."r,;. declare, under penalty of perjl foregoing is true and correct. Executed on September 4, 200E at Huntington Beach, California Copies of the exhibits referenced above are available in the office of the City Clerk or upon request by calling Simone Slifman, Project Manager at(714)536-5186,or through the City's website at: http://www,surfolty-hb.org/Governm-ent/Agendas/sepl5O8.ofm. Signatu I - - - Resolution NO,2008-58