Loading...
HomeMy WebLinkAbout12 - Confirming the Levying of Assessments for for the CdM BID and Advisory Board AppointmentsQ SEW Pp�T CITY OF s NEWPORT BEACH C'94IF09 City Council Staff Report June 13, 2017 Agenda Item No. 12 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 PHONE: 949-644-3031 TITLE: Resolution No. 2017-41: Confirming the Levying of Assessments for the Fiscal Year 2017-2018 for the Corona del Mar Business Improvement District and Advisory Board Appointments for Fiscal Year 2017-2018 ABSTRACT: The annual renewal of the Corona del Mar Business Improvement District (CdM BID) requires a public hearing to determine if there is a majority protest against the levied assessments or a specific improvement, activity or benefit proposed by the BID for fiscal year 2017-2018. The California Streets and Highways Code Sections 36500 et seq., grants the City Council the authority to appoint an advisory board for Business Improvement Districts formed under the Parking and Business Improvement Area Law of 1989. Following renewal of the BID, the City Council may appoint an advisory board to serve the BID in Fiscal Year 2017-2018. RECOMMENDATIONS: a) Hold a public hearing regarding the renewal of the Corona del Mar Business Improvement District. b-1) If protests represent less than 50 percent of the total assessment amount, adopt Resolution No. 2017-41, A Resolution of the City Council of the City of Newport Beach, California, Confirming the Levying of Assessments for the Fiscal Year 2017- 2018 for the Corona del Mar Business Improvement; or b-2) If protests represent 50 percent or more of the total assessment, abandon the proceedings to renew the Corona del Mar Business Improvement District. 12-1 Confirming the Levying of Assessments for the Fiscal Year 2017-2018 for the Corona del Mar Business Improvement District and Advisory Board Appointments for Fiscal Year 2017-2018 June 13, 2017 Page 2 c) 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 d) the following to the Corona del Mar Business Improvement District Advisory Board of Directors for fiscal year 2017-2018: Keith Dawson, Dawson & Dawson Edward Hanley, Hanley Investment Group Hamid Kianipur, 76 Gas Station Scott LaFleur, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Bernie Svalstad, BPS Financial FUNDING REQUIREMENTS: The City of Newport Beach (City), or its approved designee, collects the member assessments on behalf of the CdM BID and remits the monies back to the BID for funding the activities described in the annual report, which was filed with the City Council on May 23, 2017. In addition to the assessments, the City's proposed fiscal year (FY) 2017- 2018 budget includes sufficient funding of $40,000 to continue to support the CdM BID for its marketing and public area improvements efforts. The $40,000 annual funding will be expensed to the City Manager's Office, Economic Development Division, 01020202- 841046. DISCUSSION: The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500 et seq., for the purpose of financing activities and programs to benefit 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. In accordance with the 1989 Law, a public hearing must be held each year prior to the renewal of a BID. If written protests are received from the owners of the businesses within the BID which pay 50 percent or more of the total assessment to be levied, no further proceedings to renew the 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 BID, those types of improvements or activities or benefit zones shall be eliminated. If protests represent less than 50 percent of the total assessment, the City Council may renew the BID. 12-2 Confirming the Levying of Assessments for the Fiscal Year 2017-2018 for the Corona del Mar Business Improvement District and Advisory Board Appointments for Fiscal Year 2017-2018 June 13, 2017 Page 3 The CdM BID is nearing the end of its FY 2016-2017 and the Advisory Board of Directors has requested renewal of the BID for FY 2017-2018. Pursuant to the 1989 Law, an annual report must be prepared and a public hearing must be held prior to the BID's renewal. During its May 23, 2017 regular meeting, the City Council approved the CdM BID's FY 2016-2017 Annual Report, adopted a Resolution of Intention (Resolution No. 2017-37) to levy and collect assessments for the BID in FY 2017-2018, and set a public hearing for the BID renewal to take place on June 13, 2017. See Attachment A for the May 23, staff report and Resolution No. 2017-37. A public notice of the Resolution of Intention to levy and collect assessments for the renewal of the CdM BID and the time and place of the public hearing was published in the Daily Pilot newspaper on May 27, 2017. In addition, it was posted on the City's website (newportbeachca.gov/publicnotices) and, per the 1989 Law, a copy was mailed to each CdM BID business member. As of the time this report was published by the City Clerk, no letters of opposition to the CdM BID's renewal have been received by the City. Any subsequent correspondence, with a tabulation of the protests, will be provided to the City Council at its June 13, 2017 meeting. Advisory Board Appointments The City Council has the authority to appoint an advisory board to the CdM BID. The City may limit membership on the advisory board to persons' subject to the BID assessment, or a designated representative of a member business. The board that serves the CdM BID is different and distinct from other City advisory bodies and is not appointed in the same manner. The City relies upon the Streets and Highways Code for BID advisory board appointments rather than Council Policy A-2. The CdM BID's bylaws allow for the appointment of nine advisory board members. The City Clerk posted a vacancy announcement for the nine available seats on the CdM BID's Advisory Board of Directors (board seats are renewed annually). To be eligible to serve on the CdM BID Advisory Board of Directors, the applicant must be the member business owner or its designated representative. In addition, the business must be in good standing (no debt owed to the City or the CdM BID). By the April 20 deadline, seven applications were received. The CdM BID Advisory Board met on April 27 to review the applications and recommended the nomination of the seven applicants for City Council appointment. There are two board seats that remain open. The City Clerk will continue to post a vacancy announcement and the CdM BID Board will continue its outreach efforts encouraging members to apply. Once applications are received, the Board will review and make recommendations of eligible candidates for City Council appointment to fill the two remaining seats. 12-3 Confirming the Levying of Assessments for the Fiscal Year 2017-2018 for the Corona del Mar Business Improvement District and Advisory Board Appointments for Fiscal Year 2017-2018 June 13, 2017 Page 4 The recommended nominees for the FY 2017-2018 Corona del Mar BID Advisory Board of Directors are as follows: Keith Dawson, Dawson & Dawson Edward Hanley, Hanley Investment Group Hamid Kianipur, 76 Gas Station Scott LaFleur, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Bernie Svalstad, BPS Financial Conclusion If a majority protest does not exist, City staff recommends the adoption of Resolution 2017-41, a Resolution Confirming the Levying of Assessments for the Fiscal Year 2017- 2018 for the Corona del Mar Business Improvement District (Attachment B) and the subsequent approval of the proposed Advisory Board of Directors for FY 2017-2018. 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 — Staff Report and Resolution from May 23, 2017 Attachment B — Resolution No. 2017-41 12-4 ATTACHMENT A Q SEW Pp�T CITY OF �3 -W z NEWPORT BEACH 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. 12-5 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. 12-6 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. 12-7 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 12-8 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 of 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 ("CdM BID Annual Report"); and WHEREAS, on May 23, 2017, the CdM BID 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. 12-9 Resolution No. 2017-37 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 CdM BID Fiscal Year 2016-2017 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. 12-10 Resolution No. 2017-37 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; 949-644-3031. 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 change 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 23rd day of May, 2017. ATTEST: U511W, 1111111111110. 0=1 I City Clerk Attachment: Exhibit A (Boundary Map) Kevin Mul Mayor n APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney 12-11 STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF NEWPORT BEACH I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2017-37 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 231d day of May, 2017, and that the same was so passed and adopted by the following vote, to wit: AYES: Council Member Jeff Herdman, Council Member Brad Avery, Council Member Diane Dixon, Council Member Scott Peotter, Council Member Will O'Neill, Mayor Pro Tem Duffy Duffield, Mayor Kevin Muldoon NAYS: None IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 241h day of May, 2017. fflllrtVv �I.II�I. Leilani I. Brown City Clerk Newport Beach, California (Seal) 12-13 ATTACHMENT B RESOLUTION NO. 2017- 41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2017 TO JUNE 30, 2018 FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT WHEREAS, on May 23, 2017 the Corona del Mar Business Improvement District annual report and budget was filed and approved by the City Council; WHEREAS, on May 23, 2017 the City Council adopted a Resolution of Intention (No. 2017-37) declaring the intention to levy assessments for the Corona del Mar Business Improvement District for fiscal year July 1, 2017 to June 30, 2018; WHEREAS, on May 27, 2017 the City Clerk published Resolution No. 2017- 37 declaring the City Council's intention to levy assessments for the Corona del Mar Business Improvement District for fiscal year July 1, 2017 to June 30, 2018; and WHEREAS, a public hearing regarding the renewal of the Corona del Mar Business Improvement District was held on June 13, 2017 without a majority protest. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council does hereby confirm the levying of assessments as described in the Resolution of Intention, dated May 23, 2017, for the Corona del Mar Business Improvement District for the fiscal year July 1, 2017 to June 30, 2018. Section 2: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 3: The City Council finds the adoption of this resolution 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 12-14 Resolution No. 2017 - Page 2 of 2 Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 4: 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 5: 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 13th day of June, 2017. Kevin Muldoon Mayor 1121111911111=1 Leilani i. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE A'a'ron C. Har City Attorney 12-15