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Home My WebLink About04 - Amend the Stakeholder Business Structure and Annual Assessments Levied for the NBRABIDCITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: September 13, 2016 Agenda Item No. 4 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov Mary Locey, Management Analyst/BID Liaison 949-644-3031, mlocey@newportbeachca.gov TITLE: Second Reading of Ordinance No. 2016-11 to Amend the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA BID) requested amendment to its stakeholder structure and annual assessments levied require the adoption of Ordinance No. 2016-11. RECOMMENDATIONS: a) Determine that the action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because it will not result in a physical change to the environment, directly or indirectly; and b) Conduct a second reading and adopt Ordinance No. 2016-11, An Ordinance of the City Council of the City of Newport Beach Amending the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District. DISCUSSION: Due to an oversight, the ordinance attached to the August 9, 2016 City Council staff report was not the ordinance previously introduced on July 12, 2016. Thus, the ordinance adopted at the August 9, 2016 meeting is of no force or effect, as it was never introduced for a first reading, per the requirement of City Charter Section 412. Staff has re-agendized this matter so that the City Council may conduct a second reading of Ordinance No. 2016-11 (Attachment A). A copy of the August 9, 2016 City Council staff report, minus the incorrect ordinance, is Attachment B. 4-1 Second Reading of Ordinance No. 2016-11 to Amend the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District September 13, 2016 Page 2 ATTACHMENTS: Attachment A —Ordinance No. 2016-11 Attachment B — August 9, 2016 Staff Report, without attachments 4-2 ATTACHMENT A ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE STAKEHOLDER BUSINESS STRUCTURE AND ANNUAL ASSESSMENTS LEVIED FOR THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT WHEREAS, on November 13, 1995, the City Council of the City of Newport Beach ("City Council") adopted Ordinance No. 1995-55 establishing the Newport Beach Restaurant Association Business Improvement District ("NBRA BID") pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. ("1989 Law"); WHEREAS, on November 24, 2009, the City Council adopted Ordinance No. 2009-26 that amended the NBRA BID's annual benefit assessment levy; WHEREAS, in past years, the NBRA BID referred to businesses within the NBRA BID as "members" or "member businesses," the NBRA BID Advisory Board of Directors thinks it is appropriate to use the term "stakeholder businesses" or "stakeholders" going forward to refer to businesses located within the NBRA BID; WHEREAS, the 1989 Law allows the City Council to amend the benefit assessment levied on stakeholder businesses within the NBRA BID; WHEREAS, the NBRA BID Advisory Board of Directors has requested that the City Council amend the stakeholder business structure and assessments levied on its stakeholder businesses; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81 declaring its intention to amend the stakeholder structure to include the following businesses within the NBRA BID: any food -service business within the boundaries of the city of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81, further declaring its intention to amend the NBRA BID's annual benefit assessments as described herein; WHEREAS, the City Council held a public meeting regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy on July 12, 2016, where the City Council solicited testimony from the public and members of the NBRA BID; and WHEREAS, the City Council has scheduled a public hearing on August 9, 2016, where members of the public and the NBRA BID are invited to give testimony and 4-3 Ordinance No. 2016 - Page 2 of submit written protests regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy; and WHEREAS, there was no written majority protest under California Streets and Highways Code Section 36525 that would prevent the City Council from adopting this ordinance. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 1 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The stakeholder structure in the Restaurant Association Business Improvement District shall include the following businesses: any food- service business within the boundaries of the City of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business. Certified Farmer's Markets, mini -marts, yachts and charters, banquet facilities, private membership clubs, theaters, and gas stations shall be exempt from the Restaurant Association Business Improvement District's membership. Section 2: Section 2 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The City Council levies, imposes, and order the collection of a benefit assessment levied upon persons conducting business within the Restaurant Association Business Improvement District. Such benefit assessment levied shall be as follows: A. Full service restaurant (e.g., with wait service) $600 B. Fast casual restaurant (e.g., place order at counter) $500 C. Grocery or market $500 D. Coffee, tea or specialty shop $150 E. Dessert, bakery or treats $150 F. Juice bar or smoothie shop $150 G. Catering company $150 Section 3: Section 3 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The revised benefit assessment contained in this ordinance shall be effective September 9, 2016. The benefit assessment shall be collected Ordinance No. 2016 - Page 3 of _ from existing businesses in the NBRA BID by the City in one (1) pro -rated annual installment. The benefit assessment for stakeholder businesses established after September 9, 2016 shall be at the revised rate, pro -rated according to the number of full months remaining in the NBRA BID's fiscal year, starting on the day of the issuance of a business license by the City. Section 4: Section 4 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The penalty for delinquent benefit assessment payments shall be twenty- five percent (25%) per month, provided that the penalty to be added shall in no event exceed fifty percent (50%) of the assessment amount due. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 7: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 8: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in an ordinance related to the NBRA BID shall remain unchanged and shall be in full force and effect. Section 9: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. 4-5 Ordinance No. 2016 - Page 4 of _ This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 2016, and adopted on the day of , 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS DIANE B. DIXON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTO - NEY%S OFFICE C� AARON C�-HARP, CITY ATTORNEY