HomeMy WebLinkAbout04 - Intention to Renew the CdM BID and Levy Assessments in Fiscal Year 2017-2018�EWPR CITY OF
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- z NEWPORT BEACH
<,FoR�P City Council Staff Report
May 23, 2017
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager - 949-644-3001,
dkiff@newportbeachca.gov
PREPARED BY: Mary Locey, Management Analyst/BID Liaison
mlocey@newportbeachca.gov
PHONE: 949-644-3031
TITLE: Resolution of Intention to
Improvement District and
2018
ABSTRACT -
Renew the Corona del Mar Business
Levy Assessments in Fiscal Year 2017-
The Corona del Mar Business Improvement District (CdM BID) Board of Directors has
submitted the BID's fiscal year (FY) 2016-2017 Annual Report for City Council approval
and has requested renewal of the BID for FY 2017-2018.
RECOMMENDATION:
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;
b) Approve the Corona del Mar Business Improvement District's Fiscal Year 2016-2017
Annual Report and its Proposed Fiscal Year 2017-2018 Budget; and
c) Adopt Resolution No. 2017-37, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Corona del Mar Business
Improvement District and Levy Assessments for the Fiscal Year of July 1, 2017 to
June 30, 2018, and Fix the Time and Place of a Public Hearing for June 13, 2017.
FUNDING REQUIREMENTS:
The City of Newport Beach (City) collects the stakeholder assessments on behalf of the
CdM BID and remits the monies back to the BID for funding the activities described in the
attached annual report. In addition to the member assessments, in 2013, the City Council
agreed to provide $40,000 each year for five years (ending FY 2017-2018) to support the
CdM BID efforts.
4-1
Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2017-2018
Page 2
In 2014, the City Council approved reducing funding to $20,000 when the CdM BID
Advisory Board of Directors (Board) agreed that the BID bookkeeping services
(assessment billing, collection, financial reporting) and minimal administrative support
would be performed in house by City staff.
Then, on June 14, 2016, the City Council approved a request from the CdM BID Board to
outsource the bookkeeping services and return the City funding back to the originally
agreed upon amount of $40,000 through FY 2017-2018.
The City's proposed FY 2017-2018 budget includes sufficient funding to continue to
support the CdM BID with a City contribution of $40,000. It will be expensed to the
Professional and Technical account in the City Manager's Office, Economic Development
Division, 01020202-811008.
DISCUSSION:
The Corona del Mar Business Improvement District (CdM BID) was formed in 1997
(Ordinance 97-24) pursuant to the Parking and Business Improvement Area Law of 1989
(1989 Law), codified in the Streets and Highways Code Sections 36500 et seq. The CdM
BID was established for the purpose of financing activities and programs to benefit the
businesses located and operating in the area. The CdM BID territory encompasses the
area generally located along East Coast Highway from Hazel Drive to Avocado Avenue
in Corona del Mar. (A boundary map is attached to the Resolution.)
The CdM BID is nearing the end of its FY 2016-2017 operating period and the Board,
which serves in an advisory capacity to the City Council, has requested renewal of the
BID for FY 2017-2018. Pursuant to the 1989 Law, an annual report must be prepared and
filed with the City Council and a public hearing (scheduled for June 13) must be held prior
to the BID's renewal.
The CdM BID Board has prepared and submitted the attached annual report (Attachment
A) for the Council's review and approval. The report includes a summary of the CdM BID's
FY 2016-2017 accomplishments and revenues as well as its proposed activities and
budget for the upcoming fiscal year.
Fiscal Year 2016 Accomplishments
The CdM BID Board has continued making progress on the priorities identified in its Vision
2020 plan. Specific areas of focus include its ongoing marketing, outreach and
communication efforts, regular maintenance programs and improvement projects. Board
members have been working on several projects, which are key to its continued effort to
revitalize the Business District and improve the economic growth of its members.
Parking has been an ongoing concern for the Board and the neighboring residents. A
subcommittee has undertaken an effort to address parking and has identified several key
areas to review including a shuttle program, parking wayfinding signs and working with
City staff to revise parking requirements. The subcommittee and the Board will continue
its efforts to improve parking in the area for the businesses, residents and visitors.
4-2
Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2017-2018
Page 3
The Board has also focused its efforts on enhancing the business district with the
proposed addition of decorative street signs along East Coast Highway. The signs will
include a graphic of a flower representing the various flower -named streets - Acacia,
Begonia, Carnation, Dahlia, Fernleaf, Heliotrope, Jasmine, Larkspur, Marigold,
Narcissus, Poinsettia and Hazel - that intersect the highway. The proposed signs are
currently being designed with the respective flower details.
The BID's original Vision Plan included the Gateway Entry improvements, which were
recently completed under a City contract. After construction started on the project, the
BID requested the installation of an electrical circuit for up -lighting and outlets to expand
its annual holiday decor program. The City worked with the contractor on a change order
for the improvements, the BID paid for the requested installation. The BID's FY 2017-
2018 budget includes funding for maintaining the current electrical system as well as
funding for the potential of a future installation of electricity to the MacArthur Boulevard
median.
The CdM BID recently launched a new website that offers enhanced member services
and communication. The mobile -friendly website (cdmvillage.com) provides a portal for
members to pay their assessments online, it features a robust and searchable business
directory, displays news, events and meetings, and social media integration.
At the request of its members, the BID partnered with the CdM Chamber of Commerce
to sponsor a new marketing effort, Explore CdM. The Explore CdM campaign includes
street light banners, advertisements and direct mail to area residents to attract locals and
visitors to the unique shopping and dining experiences in Corona del Mar. In addition, the
City issued a Special Event Permit for sidewalk sales that were held on the first Saturday
in September, October, November and December 2016. The participating BID members
found the sidewalk sales to be successful and have requested that they continue each
month. City staff is currently working with the CdM Chamber representative to review the
potential for implementing monthly sidewalk sales.
The remainder of the FY 2017-2018 activities listed in the annual report includes the
ongoing and regular efforts of the CdM BID for the general maintenance of the East Coast
Highway tree -well landscaping and street furniture (benches, trash receptacles and
bicycle racks) and the marketing outreach efforts of the events and activities that occur
within the CdM BID boundaries.
Fiscal Year 2016-2017 Operating Results
During FY 2016-2017, the CdM BID collected approximately $95,000 in member
assessments, approximately $2,500 in assessment late fees and the City contributed
$40,000 in funding.
The CdM BID's total income for FY 2016-2017 is expected to be approximately $137,500.
The year-end expenditures for the approved activities is estimated to be $125,915. It is
estimated that $95,929 in retained earnings will be carried over to the new fiscal year.
4-3
Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2017-2018
Page 4
The proposed operating budget for FY 2017-2018 is attached to the CDM BID's annual
report for the City Council's approval.
Future of the CDM BID
City Council directed staff to review the future of the two remaining BIDs (CdM and the
Newport Beach Restaurant Association BID) last year during the renewal process. Staff
from the City Manager's Office and City Attorney's Office have met to discuss options
such as disbanding the BID, reforming the BID under the 1994 Law or leaving the BID as
it is today under the 1989 Law.
It was determined to start with outreach to the members through a survey to gauge
satisfaction and knowledge of the benefits being provided through the BID. Staff has been
working to obtain all known member email addresses, developing survey questions and
has been in discussions with a survey provider. Staff's goal is to conduct the survey within
the next few months. Once the survey results are received and reviewed, staff will meet
again and enter into discussions with representatives from the CdM BID Board.
Conclusion
The CdM BID Board is aware that the City Council is seeking recommendations for
alternatives for how the BID is currently formed and operated, that City staff is reviewing
potential alternatives, and that this is the last year of City funding under the current
agreement.
Thus, City staff is recommending adoption of Resolution No. 2017-37, a Resolution of
Intention to Renew the Corona del Mar Business Improvement District (Attachment B)
and levy assessments in fiscal year 2017-2018 and setting the public hearing for renewing
the CdM BID for June 13, 2017.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 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 for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — CdM BID Annual Report and Budget
Attachment B — Resolution of Intention to Renew the CdM BID
ATTACHMENT A
40 N ^DEz Corona del Mar Business Improvement District
° ANNUAL REPORT
Year -End Report for FY 2016-2017
Improvements and Activities for FY 2017-2018
This is the annual report for the 21 year of the Corona del Mar Business Improvement District
(CdM BID), as required by Section 36533 of the California Streets and Highways Code.
1. Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries.
2. Improvements and Activities for the Fiscal Year of July 1, 2017 to June 30, 2018.
A. VISION 2020 - REVITALIZATION IMPROVEMENTS & MAINTENANCE
The following are revitalization project improvements and maintenance programs planned
for the CdM BID for the fiscal year (FY) 2017-2018. These expenditures are consistent
with the BID's Vision 2020 plan.
2.1 Parking & Transportation Improvements
The BID will be putting forth a concentrated effort on various methods to solve the
parking problems affecting Corona del Mar's Business District. This continued effort
involves study and analysis toward possible solutions working with property owners
and City staff on parking requirements, employee parking solutions, parking way -
finding signs, a shuttle program, and additional components for increased parking
and a better overall parking environment.
2.2 Flower Street Sign Program — (PCH through the CdM Business District)
The Board will be completing the Flower Street Sign Program as a carry-over project
from the FY 2016-2017. These improvements shall include enhanced street signs to
accentuate the popular flower streets of Corona del Mar. The Program shall include
replacement of existing street signs in the Business District with taller and larger
signs that would include an illustration of the flower in which the street is named.
2.3 Gateway Entry Electrical Improvements & Maintenance (MacArthur & PCH)
The Gateway Entry Improvement Project has been part of the BID's original Vision
Plan for Corona del Mar for the past 16 years and was recently completed. The BID
requested and funded the installation of electricity along the new sidewalk area. The
BID will budget for annual electrical maintenance to ensure the electricity stays in
good -working order. In addition, the BID has budgeted for completion of electrical to
the median in this area for enhanced gateway entry lighting.
2.4 CdM South Entry Improvements (Hazel/Poppy & PCH)
The BID will be working on enhancing the south entry to Corona del Mar and has
budgeted funds for project improvements, which could include an upgraded entry
monument sign, lighting or other facade to welcome visitors coming to and from
South County through the Corona del Mar Business District.
CdM BID FY 2016-2017 Annual Report I Page 1
4-5
2.5 Landscaping & Tree Well Maintenance
The BID will continue to provide maintenance through a landscape agreement to
ensure the proper care, cultivation and irrigation of 180 tree well areas. The BID will
continue to provide oversight of overall landscaping in the village working closely
with the City. The BID will also pay for the upkeep and repair of the irrigation backflow
valves that provide water to the street trees and tree wells.
2.6 Streetscape & Street Furniture Maintenance
The BID will continue to maintain and refurbish existing street furniture including
trash receptacles, benches, bike racks and bus stops to ensure quality aesthetics.
2.7 News Racks Program
The BID has been striving to upgrade the newspaper racks throughout the Business
District. The current news racks are damaged, unsafe and, in some cases, interfere
with valuable parking along Coast Highway. The improvement program groundwork
with the help of the City staff and the City Council, has been in the works for the past
couple years. The BID had budgeted $20,000 in FY 2016-2017 toward the cost of
project completion and recently the project has been halted. City staff is currently
working with the publications on improving or removing the existing news racks. The
BID is currently allocating budget funds in the event this project may be reinstated
for the purchase and installation of the upgraded news racks.
B. VISION 2020 — MARKETING & MEMBER BENEFITS
2.8 Website & Communications
The BID recently launched a new informative and interactive website with features
to better communicate with its members. The website includes a business directory
feature to aide in marketing BID members to the public, as well as the ability to pay
member assessments online. Other features include the addition of news, event and
meeting postings with an integrated connection to the BID's social media. The BID
will continue to maintain, update and keep optimization current for enhanced
member marketing and information.
2.9 Marketing & Media Campaigns
The BID has recently launched a "Shop Local" Marketing Campaign as a coordinated
effort with the CdM Chamber of Commerce. This campaign involves a variety of
marketing and media components to assist the Business District's retailers.
Components include street light banners, direct mail, newspaper advertisement,
events and more. The BID's budget includes funding to continue this campaign along
with additional campaigns throughout the year. The BID will maintain the existing
annual marketing programs and develop new strategic campaigns to promote
economic growth within the business district. The BID will continue media relations
with local press and community associations and maintain or develop new marketing
collateral.
2.10 CdM BID Member Directory, Window Decals & Informational Brochures
The BID shall continue to co -produce and co -publish the annual business
membership promotional publication, the Corona del Mar Business Directory
(Directory). The Directory shall list and market the CdM BID members in a colorful
print publication campaign for shopping local, which is mailed to 10,000 households
CdM BID FY 2016-2017 Annual Report I Page 2
in Corona del Mar and the surrounding areas. The BID will also update its annual
Vision 2020 brochures listing the BID's recent accomplishments and future goals.
This brochure will be distributed with the annual member assessment mailings in
July and throughout the year.
2.11 Christmas Walk
The BID will contribute funds to the CdM Chamber of Commerce to sponsor the
annual Christmas Walk, which successfully stimulates the economic climate of the
District and provides a promotional platform for all businesses within the BID
boundaries and beyond.
2.12 Pacific Coast Hwy Dolphin Topiary Program
The BID will continue to fund and coordinate the festive seasonal decorations of the
Dolphin Topiaries at the intersection of Marguerite and Coast Highway. The BID
continues to receive countless online communications from the local community on
the value of this traditional program.
2.13 Street Light Banner Program
The BID will continue to fund and coordinate the rotating Street Light Banner
Program to highlight the annual CdM signature community events (Annual Town
Meeting, Scenic 5K, Christmas Walk) as well as the Happy Holidays Banners and
Shop Local Banners. The BID will continue to work with the contract vendor and the
City on permits, schedules and installation/breakdown. The Street Light Banner
Program continues to offer the Business District a sense of community spirit and
promotion.
2.14 Business District Holiday Decor Program
The BID will continue to fund and coordinate installation and maintenance of the
annual Holiday Decorations within the Business District. The BID will work with the
contract vendor and the City on annual permits, lighting, maintenance and the
installation/breakdown.
2.15 Marketing Consulting & Reporting
The BID shall continue the marketing consulting contract with the CdM Chamber of
Commerce to formulate, coordinate and administer the marketing efforts of the BID
and report to the Board routinely on the results of the marketing activities.
C. VISION 2020 — OUTREACH
2.16 Annual Town Meeting
The BID will continue to hold and produce the Annual Town Meeting for Corona del
Mar and coordinate a "State of the Business District Address" to its members. The
meeting serves as an outreach platform and community gathering for the BID
members and local community members. The annual meeting is required by the BID
bylaws.
2.17 Business Beautification Award Program
The BID will continue to pay for and manage the successful bi-monthly Business
Beautification Award Program by identifying business locations within the District
who have renovated, remodeled or enhanced the aesthetics of their storefronts
contributing to the overall Vision 2020 Plan. Recipients of the award receive media
CdM BID FY 2016-2017 Annual Report I Page 3
4-7
attention and an award at a community event.
2.18 Outreach Materials & Mailings
The BID shall continue to communicate with the community through exhibiting at
various monthly and annual events. Programs, collateral and BID announcements
will be available, displayed and communicated through the CdM Chamber of
Commerce, the CdM Residents Association and at other community events. The
BID will continue to mail members who have paid their assessments a membership
decal signifying they are in good standing with the BID.
D. VISION 2020 — ADMINISTRATION
2.19 Administrative Consulting & Reporting
The BID shall continue the administrative consulting contract with the CdM Chamber
of Commerce to formulate, coordinate and administer the BID and report to the
Board routinely on the results of the administrative duties. Activities include
preparing and coordinating agendas, memos, communications and/or reports
(preparation of annual report and budget). Other duties include serving as liaison
with City staff and providing a post -meeting action item list to the City Manager's
Office. The BID Board shall continue to assume some administrative responsibility
to include taking meeting minutes.
2.20 Administrative Expenses
The BID shall continue to operate and conduct general business through the CdM
Chamber of Commerce as the designated consultant to provide for a physical
mailing address, telephone answering service, office equipment, meeting space and
storage of BID collateral.
2.21 Financial Reporting, Bookkeeping and Billing Services
The BID shall continue to contract with Community Business Solutions for its
bookkeeping services, which includes coordination of the assessment billing,
accounts receivable and payable, preparation of the monthly financial reports, and
financial reporting to the City staff and BID Board.
3. Estimated Cost of Improvements & Activities for FY 2017-2018
Improvements
$
72,469
Landscaping (Maintenance & Other)
$
21,600
Streetscape (Maintenance & Other)
$
6,000
Marketing & Administration
$
75,300
Website (Hosting, Tech Support, Maintenance & Marketing) $
8,440
Holiday Decor & Lite Pole Banner Program
$
34,000
Outreach
$
1,000
Administration & Financial Services
$
19,120
TOTAL
$
237,929
2020 Vision Plan Revisions
The Board continues to reevaluate and revise the 2020 Vision Plan. Subcommittee meetings
and workshops to develop new objectives will continue to be held. Efforts will continue to
inform business and residential communities of the findings.
CdM BID FY 2016-2017 Annual Report I Page 4
4. Method and Basis of Levying the Assessment
The benefit assessments will be collected by the City in one installment. The benefit
assessment shall be equal to one hundred fifty percent (150%) of the City's annual business
license fee as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for
delinquent payments shall be equal to that established for delinquent business license fees
pursuant to Chapter 5.04 of the Municipal Code, providing that the penalty amount added
shall in no event exceed fifty percent (50%) of the assessment amount due. Banks and
financial institutions that are exempt from City business license regulations shall be assessed
$500 per year. Insurance agencies that are exempt from City business license regulations
shall be assessed $250 per year. Persons operating in one of the following types of
businesses, as an independent contractor in an establishment owned by another person shall
be exempt from this assessment: 1. Hair stylists; 2. Nail technicians; and 3. Real estate
agents. Assessments shall be collected in one annual installment at the beginning of the fiscal
year, and be pro -rated for new businesses that open during the fiscal year. The BID is
considering a more aggressive collection effort on delinquent member assessments.
5. Surplus Carryover from Fiscal Year 2016-2017
It is estimated that approximately $95,929 will be carried over as retained earnings from FY
2016-2017 to FY 2017-2018.
6. Sources of Contributions from other than levy
In addition to the annual BID assessments, the CdM BID's FY 2017-2018 budget includes
$40,000 in funding from the City.
7. Prior Year Accomplishments
The FY 2016-2017 was a successful year for the CdM BID although improvement projects
were slow to develop. The City contributed $40,000 as the fourth installment of a five-year
commitment to support the BID. The BID successfully began work or completed projects and
programs, maintained existing programs and developed new projects within the CdM
Business District in the estimated FY end budget as show on the following page.
Fiscal Year 2016-2017 Projects and Programs
Improvement Projects
News Racks ($20,000 budgeted) — program denied
Flower Street Sign Program
Landscaping
Tree -well landscaping maintenance & back flows
Holiday Decor & Street Light Banner Program
Dekra-lite Contract
New Website
Development of website for member benefits & information
Marketing, Administration & Outreach
Shop Local Marketing Campaign and components, BID brochures, website
(developed, hosted and maintained), CdM Business Directory, Dolphin Topiary
Program, Beautification Program, Christmas Walk sponsorship, membership decals,
annual meeting, mailings, storage and physical address, Board administration,
agendas, reports and communications
Administration & Accounting
Billing, financial reporting, mailings
TOTAL
$ 5,000
$ 14,424
$ 29,000
$ 10,000
$ 53,774
$ 13,717
$ 125,915
CdM BID FY 2016-2017 Annual Report I Page 5
ag
Corona del Mar Business Improvement District
Proposed Operating Budget / Fiscal Year July 1, 2017 thru June 30, 2018
Income
City Matching Funds 40,000.00
Late Fees 2,000.00
Member Assessments 100,000.00
Total Income 142,000.00
Expense
Highway Decor — Dekra-lite
Contingency
3,000.00
Holiday Decor (Contract)
24,000.00
Banner Program (Street Light)
7,000.00
Total Highway Decor — Dekra-lite
34,000.00
Website Maintenance & Support Service
Website Maintenance & Management
7,200.00
Website Hosting
240.00
Website Contingency
1,000.00
Total Website Maintenance & Support Service
8,440.00
Marketing & Administration
Contingency
5,000.00
Consulting (Reporting)
23,000.00
Membership decals
1,200.00
Annual Meeting
1,000.00
Social Media/Communications
1,000.00
Office Facilities/Storage/Phone
4,000.00
Beautification Award Program
1,000.00
Dolphins
1,000.00
Christmas Walk
4,000.00
Directory
7,500.00
Collateral/Brochures
1,600.00
Marketing Campaigns & Programs
25,000.00
Total Marketing & Administration
75,300.00
Streetscape
Street Furniture (Benches)
5,000.00
Street Furniture (Maintenance)
1,000.00
Total Streetscape
6,000.00
Landscaping — Pinnacle
Landscaping Contingency
6,000.00
Landscaping/Tree Wells
15,600.00
Total Landscaping — Pinnacle (Contract)
21,600.00
Administration & Accounting
Accounting service fee (bill.com)
2,400.00
Admin Bank Service Charge
120.00
Accounting & Financial Reporting Services
15,600.00
Mailings
1,000.00
Total Administration
19.120.00
4-10
Improvements
Flower Street Signs
10,000.00
News Racks
1,000.00
Gateway Electrical Improvements
5,000.00
Gateway Electrical Maintenance
1,000.00
South Entry Improvements
5,000.00
Consulting / Studies
5,000.00
Parking & Transportation
45,469.00
Total Improvements
72,469.00
Outreach
Community Workshops
1,000.00
Total Outreach
1,000.00
Total Expense 237,929.00
Net Ordinary Income (Prior Year Retained Earnings) -95,929.00
Net Income 0.00
4-11
ATTACHMENT B
RESOLUTION NO. 2017 - 37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE CORONA DEL MAR
BUSINESS IMPROVEMENT DISTRICT AND LEVY
ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2017
TO JUNE 30, 2018, AND FIX THE TIME AND PLACE OF A
PUBLIC HEARING
WHEREAS, the Corona del Mar Business Improvement District ("CdM BID") was
established in 1997 pursuant to the Parking and Business Improvement Area Law of
1989, California Streets and Highways Code, Sections 36500 et seq., (1989 Law"), which
requires an annual report to be filed and approved by the City Council for each fiscal year;
WHEREAS, the advisory board, known as the CdM BID Board of Directors, has
prepared an annual report for the 2016-2017 fiscal year which is on file in the Office of
the City Clerk ("Annual Report"); and
WHEREAS, on May 23, 2017, the Annual Report was filed with and approved by
the City Council.
NOW, THEREFORE, the City Council of the City of Newport Beach ("City")
resolves as follows:
Section 1: The City Council hereby declares its intention to renew the CdM BID
for fiscal year July 1, 2017 to June 30, 2018, pursuant to the 1989 Law.
Section 2: The City Council hereby declares its intention to levy assessments for
the CdM BID for the fiscal year July 1, 2017 to June 30, 2018, pursuant to the 1989 Law.
Such benefit assessment shall be as follows:
A. Banks and financial institutions that are exempt from City business license
regulations shall be assessed Five Hundred Dollars ($500) per year.
B. Insurance agencies that are exempt from City business license regulations
shall be assessed Two Hundred Fifty Dollars ($250) per year.
C. Persons operating one of the following types of businesses as an
independent contractor in an establishment owned by another person shall
be exempt from this assessment:
1. Hair stylists
2. Nail technicians
3. Real estate agents.
D. The assessment for all other businesses within the CdM BID shall be one
hundred fifty percent (150%) of the annual business license tax as
established pursuant to Chapter 5.08 of the Newport Beach Municipal
Code.
4-12
Resolution No. 2017 -
Page 2 of 3
Section 3: The penalty for delinquent payments shall be equal to that
established for delinquent business license fees pursuant to Chapter 5.04 of the Newport
Beach Municipal Code, providing that the penalty to be added shall in no event exceed
fifty percent (50%) of the assessment amount due.
Section 4: The benefit assessments shall be collected by the City, or its
designee, in one annual installment. The assessment for new businesses shall be pro-
rated according to the number of full months remaining in the CdM BID's fiscal year.
Section 5: The improvements and activities to be funded by the benefit
assessments shall include only the following:
A. Marketing, advertising, and public relations;
B. Public area improvements and maintenance programs;
C. Promotion of public events that are to take place on or in any public places
in the area;
D. General promotion of retail trade activities; and
E. Administration.
The implementation of these actions is described in the Annual Report, which is on file
with the Office of the City Clerk located at 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660.
Section 6: The location of the CdM BID will remain the same: Generally located
on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater
specificity in the map attached as Exhibit A, and incorporated herein by reference.
Section 7: The time and place for a public hearing on the CdM BID renewal is
set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 13, 2017, at
the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660.
Section 8: During the public hearing, the City Council shall hear and consider
all protests against the establishment area, or the furnishing of specified types of
improvements or activities within the area. 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. If written protests are received by the owners of the businesses within the CdM
BID which pay fifty percent (50%) or more of the total assessments to be levied, no further
proceedings to renew the CdM BID 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 specific type or types of improvements or activity or benefit within the
CdM BID, those types of improvements or activities or benefit zones shall be eliminated.
4-13
Resolution No. 2017 -
Page 3 of 3
Section 9: Further information regarding the proposed CdM BID renewal may
be obtained at the City Manager's Office, 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660-1949-644-3031.
Section 10: The City Clerk is directed to provide notice of the public hearing in
accordance with Streets and Highways Code Sections 36523 and 36541.
Section 11: The City Council finds the adoption of this resolution of intention is
not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
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 for resulting in physical charge to the
environment, directly or indirectly.
Section 12: If any section, subsection, sentence, clause or phrase of this
resolution 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 resolution. The City
Council hereby declares that it would have passed this resolution, 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 13: This resolution shall take effect immediately upon its adoption by the
City Council and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 23r' day of May, 2017.
ATTEST.
Leilani I. Brown
City Clerk
Attachment: Exhibit A (Boundary Map)
Kevin Muldoon
Mayor
APPROVED AS TO FORM:
CITY_ ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
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