FY 2023-2024 Annual Report & Financials - Riviera Village Association — Redondo Beach City Council, December 5, 2023

1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net
RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT ANNUAL REPORT 2023-2024 The Riviera Village Business Improvement District (BID) advisory Board hereby requests that the City Council of the City of Redondo Beach authorize the continuance of a Parking and Business Improvement District in the Riviera Village area of Redondo Beach in accordance with the State Law of 1989 (36500 of the Streets and Highway Code). The BID Advisory Board further requests that the Mayor and City Council generally include the following in any Resolution of Intention considered for adoption at the Redondo Beach City Council meeting on December 19, 2023.

DISTRICT NAME
The name of the BID is "Riviera Village Business Improvement District".

DISTRICT BOUNDARIES
The district boundaries are in question, and the RVA seeks formal guidance on the exact boundaries of the RVA as controlled by a guiding contract referred to in the By-Laws.

PROPOSED ASSESSMENT
The proposed assessment, resolution CC-XXXX-XXX is to be approved by Council on 12/5/2023 is as follows:

All business license holders located within the boundaries will continue to be members of the BID. Each license holder (with the exception of nonprofit organizations who elect not to participate in the BID) will be assessed as follows: Each business license holder will pay 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 and are assessed on their business license fees on a per unit basis shall pay BID fees of $100 plus $29 per rental unit per year with a maximum assessment of $1,000. 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 licensed property owner with four rental units would pay an annual assessment of $216.
1 1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net

METHOD OF COLLECTION
The assessment will be billed, accounted for and collected by the City. All BID funds collected by the City will be turned over to the BID in a timely manner consistent with the Agreement for Project Services executed between the City of Redondo Beach and the Riviera Village Association. The annual amount of fees collected through the BID in 2023, as of 10/26/2023 is $78,936, of which we seek formal reporting to maintain transparency in our record keeping.

INCOME/FUNDS DISTRIBUTION
Traditionally, the RVA has an annual budget earmarked with the following ratio of expenses as it relates to total income, which is variable: Administration : 10%, Marketing : 40%, Beautification & Maintenance :
50%. Please see the attached reports for 2023 Actuals in addition to 2024 Projections. The Board does not desire to change the allocation or ratio of expenses for 2024.

PARKLET PROGRAM
The parklet program continues to run successfully in 2023 serving to create a thriving restaurant scene, attract more consumers to Riviera Village and, according to District 1 Council Member Nils Nehrenheim, increase tax revenue to the City of Redondo Beach. After nearly 3+ years of usage, the parklets are showing wear and tear. The BID voted to refurbish the parklets with new siding, paint, light box surrounds and artificial turf. The BID invested in a CASp report to evaluate patron accessibility in all parklets, in part to address any issues that need correcting during refurbishment. An agreement was made with the city wherein the BID pays for labor; the City orders, and pays for, materials. In April 2023, The BID chose to refurbish a small test segment of 3 parklets before tackling all parklets: GoodStuff, 1617 S Pacific Coast Highway, Kalaveras, 228 Avenue I and Mi Burrito, 1700 S Catalina A (parklet located on Avenue I). The work was completed to the City’s satisfaction.

The current Village-wide parklet permit expires December 31, 2023, and currently the City has received approval to extend the program until 2026. Ted Semaan, Public Works Director at City of Redondo Beach attended the August 15, 2023 RVA Board of Directors meeting. He felt confident the parklet permit would be extended and recommended the BID move forward with refurbishment of the remaining parklets on S Catalina Avenue. The parklets refurbishment project was completed on October 30, 2023. 3 1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net

BEAUTIFICATION FUNDS
The BID funded the build and install of five sidewalk planter boxes with drought tolerant plants located on the west side of South Catalina Avenue between Vista Del Mar and Avenida Del Norte. The vibrant planter boxes replace former planting areas that were either barren or had unsightly overgrown weeds and dying plants. The BID continues to work with its landscaping company to maintain/replenish sidewalk pots and planter boxes along Catalina Ave, Avenue I, Avenida del Norte and Elena which enhances the look of Riviera Village to better reflect the clientele we serve.

JOINT PROJECTS WITH CITY
The City of Redondo Beach earmarked $10,000 in 2022 for Riviera Village public art. The BID voted to paint the asphalt of two bike corrals with coastal themed designs.The RVA worked closely and effectively with the Public Works department on the project. The BID was responsible for graphic design and procuring a contractor to paint the asphalt. Amie Chessmore the designer of the utility box wraps was hired for design. Creative Paving Solutions produced design stencils and painted the asphalt for a total cost of $10,000, plus sales tax. The project was completed in August 2023 to the satisfaction of Public Works. The community feedback has been phenomenal. The street murals are a unique and attractive addition to Riviera Villages landscape. Creative Paving Solutions is a great partner. The RVA looks forward to future projects with them.

The BID Board continues to meet with City staff regularly. City staff and our City Council Member are invited to, and attend, the monthly BID Board meetings. The BID Board has also been working on the following projects/items: 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 the permanent paver program.
4 1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net

MARKETING/PROMOTIONAL FUNDS
In 2023 Riviera Village decreased the social media paid campaign budget due to loss of income from the parklets, which affected the budget. The current ad plan is based on maintaining the steady climb of followers, raising overall awareness, informing the community of Village-wide events/business events and putting faces to the names of Village businesses. In August, Riviera Village’s Instagram account achieved the 10,000 followers milestone. The RVA’s marketing is managed by a paid local professional whose focuses are raising awareness and putting faces to the names of Village businesses. Her role includes social media, email marketing, website content management, project management and content creation.

She provides photography and videography conveying lifestyle, Riviera Village products/services, people, and surrounding beauty. In 2023 paid promotions featured the farmer’s market, Riviera Village “shop, dine, relax” and large scale Riviera Village community events.

Video content has continued to trend especially well with the opportunities presented by Instagram and Facebook Reels. Year to date sixty-nine video posts have yielded over 264,153. Riviera Village's social media is showing positive gains and lower reach (due to less advertising) as follows:

Statistics over 2022-2023
September 2022 - September 2023:

MERCHANT MIXERS
RVA Merchant Mixers are held twice per year, downsized from four times per year due to a tighter budget.

In April and November at a Riviera Village restaurant, guests are treated to complimentary appetizers and a libation of their choice. The mixers provide an environment to unwind, meet fellow business owners, talk with BID Board members and for some, discover a new restaurant.

HALLOWEEN & HOLIDAY STROLL
The 2023 Riviera Village Halloween Trick or Treat is a continued anticipated event delighting the community and thousands of attendees. Hours are 3PM to 6PM on October 31, 2023. 2022’s Holiday Stroll was elevated further with a carousel, large lit letters and more interactive photo opportunities with classic holiday characters. The dynamic environment was attended by thousands. The DJ also set a festive tone encouraging kids and parents to dance in the streets with holiday characters.

Santa made a grand entrance in a vintage fire truck led by members of the Redondo Union High School marching band and stayed throughout for photos. This year, the BID is seeking sponsorship of several attractions to offset costs usually paid by the BID. This strategy works two-fold allowing the BID to allocate those funds for beautification and marketing while giving community members/businesses the opportunity to reach a new audience.

RIVIERA VILLAGE SUMMER FESTIVAL
The Riviera Village Summer Festival returned the last week of June 2023 with much of the event’s format staying in pace. Organizers shifted gears on Avenue I by installing an inflatable playground, as opposed to traditional rides like a ferris wheel. It proved to be very popular with children. Two news crews came out for live segments, KTLA Los Angeles Morning News and Spectrum One morning news. There was an excellent turnout. The festival turned a profit of $55,359 versus $46,733.98 in 2022 of which 50% was paid to the event producer, Bell Events, under a revenue sharing agreement. The RVA is currently creating an RFP process for the calendar event of 2024. 6 1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net

CERTIFIED FARMERS MARKET
The BID continues to support the Certified Farmers Market located in the Triangle Parking Lot on Sundays between 9am and 2pm which attracts many visitors to the Riviera Village. Social media ads for the market are ongoing since early 2022 and will continue in 2024. The manager of the Farmers Market has excelled in 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 at approximately $22,00 per year.

ADMINISTRATIVE
The Board of Directors coordinator the RVA Board hired in January 2022 is working well and helps maintain the consistency that was direly needed. She is responsible for creating board meeting agendas, inviting outside guests to board meetings, notifying board members of meetings, assisting the board secretary with meeting minutes and other tasks as needed. Board members continue in their additional volunteer positions managing specific village tasks and projects. Examples are: farmers market, plant maintenance, lamp post banners/holiday decor, insurance and events.

INSURANCE POLICIES
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 COVID-19) is in place as well.

BUSINESS LICENSE VERIFICATIONS
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 to execute this, and expects similar revenue in 2023.

FY 18-19 = $78,945 FY 19-20 = $87,494 FY 20-21 = $75,650 FY 21-22 = $78,729 FY 22-23 = $78,936 7 1799 S Catalina Ave Unit RVA, Redondo Beach CA 90277
[email protected] | www.rivieravillage.net
PROJECTS/GOALS ANTICIPATED FOR FISCAL YEAR 2023
Continue work on the ongoing bollards project with Chief Hoffman to create a cohesive plan to identify, seek grants for, and install retractable bollards in the Riviera Village with a phased approach. Working as needed with the City of Redondo Beach and the Coastal Commission on recently proposed plans to widen sidewalks on S Catalina, change to parallel parking, and create bike lanes. The intention of wider sidewalks is to transition to sidewalk dining and remove the temporary parklets. This plan was presented to the BID board at the August 15, 2023 board meeting by Ted Semaan.

Focus on the completion of the Sidewalk Pavers Capital Improvement Project (CIP) throughout the village in cooperation with the Mayor, City Council and City. Each segment of the CIP that gets completed adds to the ambiance of the village. Another BID goal is beautification on Avenida del Norte. Additionally, an ongoing goal is improving safety while also adding a unique feature to the village with a Roundabout at Catalina Ave & Avenue l; roundabouts both improve traffic flow while separating pedestrians from vehicle traffic inside the roundabout where the vehicles travel. The BID's current long-term goal is to continue vetting possible solutions to the short-term and long-term parking challenges within the Village.

FINANCIAL REPORTS
Exhibit A: Projected Operating Budget for Calendar Year 2024 Exhibit B: Summary of RVA 2023 YTD Budget
Exhibit C: RVA BID Financial Reports
8 EXHIBIT A
Riviera Village Association BID
Projected Operating Budget for Calendar Year 2024

REVENUE
BID Income $80,000
Event Income $25,000
Farmers Market $18,000
Surplus from 2023 $35,000
RVA Parklette income $40,400
Total $198,400
Parklets Reimbursements $224,000
Total $422,400

EXPENSES
Administrative $19,840 (10%)
Advertising & Marketing $79,360 (40%)
Beautification & Maintenance $99,200 (50%)
Total $198,400 (100%)
City Parklet Permit Fees $224,000
Total $422,400

EXHIBIT B
Riviera Village Association BID
Summary of RVA 2023 YTD Budget

REVENUE
BID Income $44,606
Event Income $30,947
Farmers Market $17,023
RVA Parklette Income $34,580
Total $127,156
Parklet Reimbursements $190,029
Total $317,185

EXPENSES
Administrative $17,794 (9%)
Advertising & Marketing $29,831(16%)
Beautification & Maintenance $77,292 (41%)
Total $124,917 (66%)
City Parklet Permit Fees $190,224
Total $315,141
Riviera Village Association
Profit and Loss
January 1 - October 6, 2023
Accrual Basis Wednesday, October 25, 2023 11:59 AM GMT-07:00 1/1 TOTAL
JAN 1 - OCT 6, 2023 JUL 1 - OCT 6, 2022 (PY YTD)
Income
4000 Income 0.00 0.00
4250 BID Income 44,606.60 0.00
4400 Billable Expense Income
4450 Event Income 30,947.55
4500 Farmers Market 17,023.40 5,000.00
4620 Merchandise Sales 248.74
4650 Parklet Income - RVA Fee 34,580.34 3,685.68
4675 Parklet Reimbursement Income 190,029.38 68,923.92
4700 Unapplied Cash Payment Income 0.00
Total Income $317,187.27 $77,858.34
GROSS PROFIT $317,187.27 $77,858.34
Expenses
6000 Administrative Expenses 17,499.51 4,831.35
7000 Beautification and Maintenance
7100 Landscaping 24,826.37 4,293.00
7200 Parklet Program
7210 City Parklet Permit Fees 171,516.00 65,132.00
7240 Parklet Construction & Studies 1,400.00 8,656.64
7250 Parklet Pest Control 5,250.00
7255 Parklet Turf Cleaning 18,275.80 8,683.88
7260 Repair & Maintenance 30,709.24 125.02
Total 7200 Parklet Program 221,901.04 87,847.54
Total 7000 Beautification and Maintenance 246,727.41 92,140.54 8200 Marketing 18,968.47 29,012.08
Total Expenses $283,195.39 $125,983.97
NET OPERATING INCOME $33,991.88 $ -48,125.63
NET INCOME $33,991.88 $ -48,125.63
Riviera Village Association
Balance Sheet
As of October 25, 2023
Accrual Basis Wednesday, October 25, 2023 12:02 PM GMT-07:00 1/1 TOTAL
ASSETS
Current Assets
Bank Accounts
1010 Opus Bank - RVA BID - 2990 121,887.21
1072 Bill.com Money Out Clearing 385.00
Journal Entries 0.00
Manage RVA BID Funds 0.00
Opus Bank - RVA - 6543 0.00
Petty Cash 0.00
Wells Fargo - 0288-864036 0.00
Total Bank Accounts $122,272.21
Accounts Receivable
1200 Accounts Receivable 3,485.72
Total Accounts Receivable $3,485.72
Other Current Assets
1310 Undeposited Funds 0.00
Total Other Current Assets $0.00
Total Current Assets $125,757.93
Other Assets
2100 Prepaid Expenses -1,125.00
Total Other Assets $ -1,125.00
TOTAL ASSETS $124,632.93

LIABILITIES AND EQUITY
Liabilities
Current Liabilities
Accounts Payable
2000 Accounts Payable 2,862.00
Total Accounts Payable $2,862.00
Credit Cards
2200 Pacific Premier - First Nat'l Bank of Omaha 0.00
Total Credit Cards $0.00
Other Current Liabilities $0.00
Total Current Liabilities $2,862.00
Total Liabilities $2,862.00
Equity
3200 Retained Earnings 102,187.63
Net Income 19,583.30
Total Equity $121,770.93
TOTAL LIABILITIES AND EQUITY $124,632.93
Riviera Village Association
Check Detail
January 1 - October 25, 2023
Wednesday, October 25, 2023 12:04 PM GMT-07:00 1/19

DATE TRANSACTION
TYPE

NUM NAME MEMO/DESCRIPTION CLR AMOUNT
1010 Opus Bank - RVA BID - 2990
01/01/2023 Expense QuickBooks Payments System-recorded fee for QuickBooks Payments.