To: MAYOR AND CITY COUNCIL
From: GREG KAPOVICH, WATERFRONT AND ECONOMIC DEVELOPMENT DIRECTOR
TITLE
title
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2312-126, 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 2024
RECEIVE AND FILE THE ADVISORY BOARD’S ANNUAL REPORT FOR 2024
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2312-127, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDONDO BEACH, CALIFORNIA, APPROVING THE REPORT OF THE ADVISORY BOARD FOR FISCAL YEAR 2024 IN CONNECTION WITH THE RIVIERA VILLAGE BUSINESS IMPROVEMENT DISTRICT
ADOPT BY TITLE ONLY, RESOLUTION NO. CC-2312-128, 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 2024 AND SETTING A TIME AND PLACE FOR HEARING OBJECTIONS THERETO; AND
SET DECEMBER 19, 2023 AT 6:00 PM AS THE DATE AND TIME FOR THE PUBLIC HEARING ON THE LEVY OF THE PROPOSED ASSESSMENTS
end
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 the 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. A presentation on the BID’s annual activities will be provided as part of the December 19th Public Hearing.
A public hearing to consider levying the BID assessments was previously scheduled for December 5, 2023. However, during the Thanksgiving holiday week, the local newspaper institutes a compressed advertisement schedule and was unable to publish the required public hearing notice in time. As such, the public hearing must be rescheduled for December 19, 2023 to allow for proper noticing.
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 non-profit corporation and staff will bring forward a contract between the City and the RVA at the December 19, 2023 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 in the district 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. Historically, 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 an assessment of $390. A license property owner with four rentals would pay an annual assessment of $216. Based on this formula, the total fees collected in 2023 were $78,936. Historically, the BID has distributed funds in the following allocation: 50% beautification, 40% marketing, and 10% administration.
The proposed assessment for FY 2023-24 will remain unchanged. However, City staff has entered into a contract with Civitas, a consulting firm that specializes in business improvement districts, to work with the Riviera Village BID to explore the feasibility of a future assessment increase and change in the bylaws to modify board member terms from 1 year to 2 years. If deemed feasible, City staff and the Riviera Village Board would appear before City Council in 2024 to request approval of the proposed changes.
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 2023 serving to create a thriving restaurant scene, attract more guests to Riviera Village and increasing tax revenue to the City. On June 21, 2022 the City Council passed Resolution No. 2206-04, changing the financial requirements 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 Parklet 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.
After approximately three years of usage, the BID voted to refurbish the well-used parklets with new siding, paint, light boxes, and artificial turf. The BID invested in a Certified Access Specialists (CASp) report, to evaluate existing patron Americans with Disability Act (ADA) accessibility conditions in all parklets, in part to address any issues that need correcting during refurbishment. In April 2023, the BID chose to refurbish a small test segment of three parklets located at GoodStuff at 1617 S Pacific Coast Highway, Kalaveras, 228 Avenue I, and Mi Burrito and 1700 S Catalina Ave (parklet located on Avenue I) prior to refurbishing all parklets. The Village-wide parklet program/permit has received approval from the Coastal Commission to extend through 2025, adding stability to the programs future.
FISCAL YEAR 2023 ACCOMPLISHMENTS
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 to enhance the appearance of Riviera Village.
Joint Projects with the City
The City of Redondo Beach earmarked $10,000 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, a designer of the utility box wraps, was hired for design, while Creative Paving Solutions produced design stencils and painted the asphalt. The project was completed in August 2023. The project has been received well by the community, and the street murals are a unique and attractive addition to the Riviera Village landscape. In addition to the public art asphalt project, the RVA has been working on the following projects/items:
• Installation of permanent retractable bollards in key areas of the Riviera Village for increased pedestrian safety during community events
• Continued collaboration with the City to help & assist with the permanent paver program.
MARKETING/PROMOTIONAL FUNDS
The RVA’s marketing is managed by a paid local professional who focuses on raising awareness of the Village businesses located within the BID. Marketing efforts include social media posts, email marketing, website content management, project management, and content creation. The professional marketer provides photography and videography conveying lifestyle, Riviera Village products/services, people, and beauty of the surrounding area. In 2023, RVA decreased the social media paid campaign budget due to loss of income from the parklets, which affected the budget. As the nation and community recovers from the COVID-19 pandemic, outdoor dining such as parklets have decreased in usage given the State’s relaxation of indoor dining restrictions. The current advertising plan is based on maintaining the steady increase in followers, raising overall awareness, and informing the community of Village-wide events/business. In August 2023, RVA’s Instagram account achieved the milestone of reaching 10,000 followers. In 2023, paid promotions featured the farmer’s market, Riviera Village “shop, dine, relax” campaign, and large-scale Riviera Village community events. Video content has continued to be received especially well with the opportunities presented by Instagram and Facebook Reels. Year to date, sixty-nine video posts have yielded over 264,153 views. 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:
INSTAGRAM FOLLOWERS 10,176 | 8,271 +1,628 +23%
FACEBOOK FOLLOWERS 9,325 | 8,099 +564 +15%
INSTAGRAM *REACH 170,023 | 192,541 - 11%
FACEBOOK REACH 378,000 | 430,162 -14%
*Reach is the number of people who saw any content from RVA accounts pages or about RVA pages
SIGNATURE EVENTS
Merchant Mixers
RVA Merchant Mixers are held twice per year, downsized from four times per year due to a smaller available budget. In April and November, guests are treated to complimentary food and beverages at a Riviera Village restaurant and are invited to meet fellow business owners, talk with BID Board members, and learn about the surrounding businesses that are also members of the BID.
Halloween & Holiday Stroll
The 2023 Riviera Village Halloween Trick or Treat was a successful event that attracted thousands of attendees. The December 2022 Holiday Stroll included a carousel, photo opportunities with classic holiday characters, and a DJ. One particular highlight was an appearance by Santa Claus in a vintage fire truck led by members of the Redondo Union High School marching band. The upcoming December 2023 event is highly anticipated, and the BID continues to seek 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 occurred in June of 2023. The event was well attended and news crews from KTLA Los Angeles Morning News and Spectrum One Morning News were present for live on-air segments. The festival turned a profit of $55,359 in 2023, which was an increase from the $46,733 in 2022.
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 have been posted 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 that provide a quality shopping experience. The market continues to be a growing source of income for the BID and earns approximately $22,000 per year.
ADMINISTRATIVE FUNDS
In January of 2022, the RVA Board of Directors hired a coordinator who 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. For increased efficiency, board members volunteer to manage specific village tasks and projects, such as the farmers market, 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) 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). 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
FY 22-23 = $78,936
*Data provided by the Financial Services Department
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 2024; 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 2024; 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 2024, 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 2024 BID boundaries nor the method and basis for levying assessments. The proposed fiscal year 2024 assessments are anticipated to be $79,000.
2023 ANTICIPATED GOALS AND PROJECTS
• RVA to continue work with the Police Department and the Public Works Department to create a cohesive plan to identify, seek grants and install retractable bollards within Riviera Village under a phased approach
• RVA to work with City staff and the Coastal Commission to widen sidewalks on S. Catalina Avenue, create parallel parking spaces within the right-of-way, 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 Public Works
• RVA to work with the Mayor, City Council, and City staff to complete the Sidewalk Pavers Capital Improvement Project in the Village
• RVA to work towards the goal of improving safety while also adding a unique feature to the village with a Roundabout at Catalina Avenue & Avenue l
• 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) Receive and file the Annual Report; 2) Adopt the three proposed 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. The December 19th Hearing will include a presentation from the BID on their annual activities.
Following the Public Hearing, the City Council will be asked to adopt a resolution approving the report for fiscal year 2024, as filed or modified by the City Council absent a majority protest, and allowing the levying of assessments for Fiscal Year 2024 which begins January 1, 2024.
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
ATTACHMENTS
• Reso - Approval of the Advisory Board Report for Fiscal Year 2023-24
• Reso - Declaring Intent to Levy Assessment for upcoming Fiscal Year 2023-24
• Reso - Appointing an Advisory Board for upcoming Fiscal Year 2023-24
• Report - FY 2021-2022 Annual Report & Financials - Riviera Village Association
• Report - FY 2023-2024 Annual Report & Financials - Riviera Village Association