Administrative
Report
H.6., File # 22-4616 Meeting Date: 11/1/2022
To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT AND ECONOMIC DEVELOPMENT DIRECTOR TITLE
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2211-088, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPOINTING AN ADVISORY
BOARD IN CONNECTION WITH THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT AND DIRECTING THE PREPARATION OF A REPORT FOR FISCAL YEAR 2023 RECEIVE AND FILE THE ADVISORY BOARD’S ANNUAL REPORT FOR 2023 ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2211-089, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPROVING THE REPORT OF THE ADVISORY BOARD FOR FISCAL YEAR 2023 IN CONNECTION WITH THE RIVIERA
VILLAGE BUSINESS IMPROVEMENT DISTRICT
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2211-090, A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, DECLARING ITS INTENTION TO
LEVY AN ASSESSMENT AGAINST BUSINESSES WITHIN THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2023 AND SETTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO; AND
SET DECEMBER 6, 2022 AT 6:00 PM AS THE DATE AND TIME FOR THE PUBLIC HEARING ON
THE LEVY OF THE PROPOSED ASSESSMENTS
EXECUTIVE SUMMARY
The Riviera Village Business Improvement District (BID) was established by the City Council in 2003 pursuant to the California Parking and Business Improvement Area Law of 1989 (Section 36500 of the Streets and Highway Code) to promote the economic revitalization and physical maintenance of the Riviera Village business district. The City Council appointed an Advisory Board for the BID to: (i) advise the City Council on the method and basis for the levy of assessments within the BID; and (ii) report on the expenditure of revenues derived from the assessments. The BID operates on a year-to -year basis with an annual expiration on December 31. Each year prior to the annual expiration, the BID appears before City Council to review past year accomplishments and consider anticipated goals for the upcoming year. City Council action must be taken to re-appoint the Advisory Board that serves the BID and levy an assessment against businesses for the upcoming year, which will be utilized for special events and improvements around the BID area.
H.6., File # 22-4616 Meeting Date: 11/1/2022
BACKGROUND
Annual renewal of the BID and the associated assessments require approval by the City Council. As part of the annual renewal, the City Council appoints an Advisory Board for the BID to advise the City Council on: i) the method and basis for the levy of assessments within the BID; and ii) the expenditure of revenues derived from the assessments. Consistent with previous City Council actions, the Board of Directors for the Riviera Village Association (RVA) is proposed to serve as the Advisory Board for the BID. The BID is required to have a non-profit corporation oversee the management functions of the BID on behalf of the BID businesses. The RVA serves as that nonprofit corporation and staff will bring forward a contract between the City and the RVA at the December 6, 2022 Public Hearing that will allow BID management to continue to occur via the Advisory Board and non-profit corporation.
BID funds are collected from businesses by the City via the annual business license renewal process. All business license holders located within the boundaries continue to be members of the BID. Each license holder (with the exception of non-profit organizations who elect not to participate in the BID) is assessed as follows: Each business license holder pays a base fee of $100 plus a fee of $29 per employee per year to a maximum assessment of $1,000. Those licensees who are property owners are assessed on a per unit basis with a base fee of $100 plus $29 per rental unit per year, with a maximum assessment of $1,500. Examples: A licensee with 10 employees would pay a total annual assessment of $390. A licensee with no employees would pay a total annual assessment of $100. A license property owner with four rentals would pay an annual assessment of $216. The proposed assessment for FY 2022-23 will remain unchanged. The total fees for 2023, based on this formula, are estimated at $79,000.
Pre-COVID-19, the RVA income averaged annual income of $124,125 per year from 2016 through 2019. However, in FY 2021-22 income was over $300,000 due to rental fees for the Parklet Program. Currently, revenue is transitioning slowly back to pre-COVID-19 levels now that the RVA has recovered its Parklets Program costs and rental fees. Historically, the BID has distributed funds in the following allocation: 50% Beautification, 40% Marketing, and 10% Administration. For FY 2021 -22, the BID’s costs remained similar to the traditional allocation with a significant portion of the beautification and maintenance expenses being tied to the Parklets.
PARKLET PROGRAM
The Parklet Program was initiated in July 2020 by the RVA in response to the COVID-19 pandemic.
The program continued to run successfully in 2022 by creating a thriving restaurant scene, attracting more guests to Riviera Village and increasing tax revenue to the City. In 2022 the RVA covered expenses to demolish four underutilized Parklets and repair vehicle damage to one Parklet. On June 21, 2022 the City Council passed Resolution No. 2206-04, changing the financial landscape of the program. Effective July 1, 2022, the City instituted a $2 per square foot rental fee that was collected by the RVA and paid to the City’s General Fund. In order to cover the costs related to the Parklets Program, including rental billing, rent collections, oversight, maintenance, cleaning, pest control, insurance and administration, the RVA instituted an additional fee of $0.36 per square foot.
The RVA will assess the feasibility of continuing the program over the coming months in anticipation of the permit expiration date of December 31, 2023 and has requested that the City reimburse the RVA for a mid-term renovation/improvement to the Parklets not to exceed $80,000. The RVA has since invested in the services of a local architect, Miles Pritzkat, to design and develop a long-term
H.6., File # 22-4616 Meeting Date: 11/1/2022
since invested in the services of a local architect, Miles Pritzkat, to design and develop a long-term solution should Riviera Village seek to apply for permanent Parklets, along with the City, to the Coastal Commission. Thus far, conceptual Parklets design renderings have been presented to the RVA Board but not voted on or approved. In the meantime, the RVA will continue to work with the City for financial assistance to aid in the refurbishment of all temporary Parklets due to wear and tear over the years,
FISCAL YEAR 2022 ACCOMPLISHMENTS
Recovery Committee
Through the Recovery Committee, the BID continues to provide a bridge between restaurants and businesses to address topics such as organizing the Village’s recovery efforts due to COVID-19, mitigating parking issues, monitoring Parklets stakeholders and enhancing the restaurant-to-business communications. The RVA also hired a parklets liaison to conduct visual inspections of parklets to ensure they are meeting the program’s standards.
Beautification Funds
The BID continues to work with its landscaping company to maintain/replenish the hanging pots and sidewalk pots along Catalina Ave, Avenue I, Avenida del Norte and Elena which enhances the appearance of Riviera Village. The BID also continues to look at ways to improve the appearance of the hardware located on the lamp posts that secure the hanging plants.
Joint Projects with the City
The RVA continues to meet regularly with City staff, including the monthly RVA BID meetings which are also attended by District 1 Councilman Nehrenheim. In addition to the successful implementation and maintenance of the Parklets, the RVA has been working on the following projects/items:
· Potential “permanitizing” of a community-approved version of the Parklet Program · Installing permanent retractable bollards in key areas of the Riviera for pedestrian safety during community events
· Continuing to work with the City to help & assist with permanent paver program · Continuing to work with Public Works to paint the asphalt of bike corrals. The project costs will be eligible for reimbursement through funds earmarked for Riviera Village public art.
Village Banners
The “SHOP, DINE, RELAX” banners have been reprinted and are in the process of being installed.
The RVA holiday banners and tinsel will be on all lamp posts during the holiday season. The BID is responsible for the costs associated with the banners and installation; the City provides the mounting hardware for the poles.
Art Wrap Project
The well-received art wrap project of seven junction boxes was completed in May of 2022. Designed by Amie Chessmore, the project is titled “Riviera Village by the Sea” and is a lighthearted collection of art reflecting the activities, nature and lifestyle of coastal Redondo Beach.
MARKETING/PROMOTIONAL FUNDS
H.6., File # 22-4616 Meeting Date: 11/1/2022
The RVA marketing is managed by a paid local professional who focuses on raising awareness of Village businesses. The marketing efforts include social media, email marketing, website content management, project management and content creation through photography and videography that conveys Riviera Village products/services, people, lifestyle and surrounding beauty. In 2022, video content trended especially well with the opportunities presented by Instagram Reels and IGTV. Year to date sixty-four video posts have yielded over 228,000* views. Riviera Village’s social media is showing positive gains and reach as follows:
January 2022 - September 2022
INSTAGRAM FOLLOWERS 8,271 +1,628 /
+24%
FACEBOOK FOLLOWERS 8,099 +564 |
+7.5%
Reach (the number of people who viewed any content from RVA accounts pages or about RVA pages)
INSTAGRAM 192,541 | +172% FACEBOOK 430,162 | +128%
*Instagram counts multiple video views from the same user
SIGNATURE EVENTS
Halloween Trick or Treat
The community welcomed back the Halloween Trick or Treat event in 2021 with COVID-19 protocols in place. It is anticipated that the 2022 event will again see thousands of participants.
Holiday Stroll
The 2022 Holiday Stroll will be similar to the 2021 event that included a more dynamic environment with enhanced colorful lighting, a DJ that encourages families to dance with holiday characters and Santa’s arrival via horse drawn carriage. The historical holiday parade has been discontinued to focus on retailers that depend heavily on holiday sales.
Riviera Village Summer Festival
This event returned in June 2022 after a three-year hiatus due to COVID-19. Due to the Parklet Program, there was a 30% decrease in the number of booth spaces, but the event was thoroughly enjoyed by the community and turned a significant profit for the BID.
Certified Farmers Market
The BID continues to support the Certified Farmers Market located in the Triangle Parking Lot on Sundays between 9:00 A.M. and 2:00 P.M., which attracts many visitors to the Riviera Village. The manager of the Farmers Market has excelled in dynamically planning the layout of the market to comply with ever-changing conditions, curating a higher caliber and diverse vendor selection, focusing on organic farmers and a quality shopping experience. The market continues to be a growing source of income for the BID.
ADMINISTRATIVE FUNDS
H.6., File # 22-4616 Meeting Date: 11/1/2022
In January, 2022 the RVA Board hired a coordinator who is responsible for handling tasks relating to the board and board meetings and other tasks as needed. For greater efficiency, board members volunteered to manage specific Village tasks and projects, such as plant maintenance, lamp post banners/holiday decor, insurance and events.
INSURANCE POLICIES
The RVA has secured the following insurance coverage:
· General Liability Insurance required by the City of Redondo Beach was renewed · Officers and Directors Liability Insurance was also renewed · Certificate of Insurance for Events (Outside Dining Parklets & Sidewalk Sale during COVID19) is in place as well.
BUSINESS LICENSE VERFICATIONS
Annual Business License verification walkthrough procedure began in late 2018 which resulted in a dramatic improvement of paid business license taxes and fees benefiting both the BID as well as the City bringing businesses into compliance (see Fiscal Year breakdown below of BID fees collected - data provided from city business license department). The BID will continue with this process and anticipates to collect fees of approximately $79,000 for FY 2022-23.
FY 16-17 = $74,943
FY 17-18 = $76,491
FY 18-19 = $78,945
FY 19-20 = $87,494
FY 20-21 = $75,650
FY 21-22 = $78,729
Pursuant to California State BID law, the City must request, and the Advisory Board must submit to the City Council, an annual report that proposes a BID budget for Fiscal Year 2023. The report must:
1) outline any proposed changes to the boundaries of the area; 2) list the improvements and activities expected in fiscal year 2023; 3) estimate the cost of providing the improvements and activities; 4) set the method and basis for the levy of assessments; 5) identify surplus or deficit revenues to be carried over to fiscal year 2023; and 6) identify any funding from sources other than assessments.
The Advisory Board has prepared the attached Annual Report (Report) for City Council’s consideration. The report contains a list of the improvements, activities and associated costs proposed within the BID for fiscal year 2023, and this submission to the City Council satisfies the requirement of law to file the report with the City Clerk. The Advisory Board has recommended no change to the 2023 BID boundaries nor the method and basis for levying assessments. The proposed fiscal year 2023 assessments are anticipated to be $79,000. 2023 ANTICIPATED GOALS AND PROJECTS
· RVA to work with Chief Hoffman of the Police Department and Ted Semann of Public Works to create a cohesive plan to identify, seek grants for and install retractable
H.6., File # 22-4616 Meeting Date: 11/1/2022
bollards in the Riviera Village with a phased approach
· RVA to work with City Staff and the Coastal Commission to permanentize the Parklet Program
· RVA to work with the Mayor, City Council and City staff to complete the Sidewalk Pavers Capital Improvement Project (CIP) throughout the Village · RVA to work towards the goal of improving safety of Village visitors while also adding a unique feature to the village with a Roundabout at Catalina Ave & Avenue I · RVA to work on possible solutions to the short-term and long-term parking challenges within the Village
COUNCIL ACTIONS
The City Council is requested to take the following actions:
1. Review the report and preliminarily approve the report as proposed or amended by City Council
2. Adopt three resolutions, including a Resolution of Intention to Levy the Assessments for the coming Fiscal Year; and
3. Set a date and time for the Public Hearing on the levy of assessments in the BID Following the Public Hearing proposed for December 6, 2022, the City Council will be asked to adopt a resolution approving the report for fiscal year 2023, as filed or modified by the City Council absent a majority protest, and allowing the levying of assessments for fiscal year 2023 which begins January 1, 2023.
COORDINATION
The Riviera Village BID renewal is coordinated by the Waterfront and Economic Development Department, with assistance from the City Manager’s Office, City Attorney’s Office and the Financial Services Department.
The Financial Services Department will continue to provide assistance with the BID assessment, receipt of payments, and the processing of these assessments and payments. The Waterfront and Economic Development Department has taken the lead in the annual renewal process with assistance from the City Manager’s Office.
FISCAL IMPACT
Adoption of the proposed BID budget is not expected to have a direct fiscal impact on the City’s budget. The BID enhances spaces in the public right-of-way and provides supplemental services in common areas that would otherwise fall to the City to maintain. BID assessments are restricted for use exclusively by the BID and must be reported to the City Council annually. It is anticipated that the BID’s annual activities will encourage activity and retail growth, potentially resulting in additional sales tax revenue for the City.
APPROVED BY:
Mike Witzansky, City Manager
H.6., File # 22-4616 Meeting Date: 11/1/2022
ATTACHMENTS
· Reso - Approval of the Advisory Board Report for Fiscal year 2023 · Reso - Declaring Intent to Levy Assessment for Fiscal year 2023 · Reso - Appointing an Advisory Board for Fiscal year 2023 · FY 2023 Annual Report & Financials - Riviera Village Association · FY 2022 Annual Report & Financials - Riviera Village Association