HomeMy WebLinkAbout05 - Resolution of Intention to Renew the NBRABID and Levy AssessmentsPaR m CITY OF
�\`S NEWPORT BEACH
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City Council Staff Report
June 12, 2018
Agenda Item No. 5
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 Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments in
Fiscal Year 2018-2019 (Resolution No. 2018-27) and Approve
Funding Support for Fiscal Year 2019
ABSTRACT:
During its May 22 meeting, the City Council continued the item pertaining to the renewal
of the Newport Beach Restaurant Association Business Improvement District (NBRA BID)
for Fiscal Year 2018-2019 to allow the NBRA BID's Advisory Board of Directors (Board)
time to meet and discuss City Council member questions and comments related to
potentially changing the legal structure of the BID. The Board held a special meeting on
May 30 to discuss the matter and develop a response. This staff report includes a brief
summary of the Board's May 30 meeting and an update to the staff recommendations
presented on May 22. Staff is now requesting one year, rather than three years, of City
funding support.
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;
b) Approve the Newport Beach Restaurant Association Business Improvement District's
Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019
Budget;
c) Adopt Resolution No. 2018-27, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments for the Fiscal Year
of July 1, 2018 to June 30, 2019, and Fix the Time and Place of a Public Hearing for
June 26, 2018; and
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d) Approve $40,000 in City funding support to the Newport Beach Restaurant
Association Business Improvement District for Fiscal Year 2018-2019.
FUNDING REQUIREMENTS:
Should the City Council approve the NBRA BID's renewal and the request for funding
support, the City's proposed FY 2018-2019 budget includes sufficient funding to continue
to support the NBRA BID with a City contribution of $40,000. It will be expensed to the
City Manager's Office, Economic Development Division, 01020202-841046.
DISCUSSION:
The City of Newport Beach currently has three business improvement districts. The
Newport Beach Restaurant Association Business Improvement District (NBRA BID) was
formed in 1995 (Ordinance No. 95-55) pursuant to the Parking and Business
Improvement Area Law of 1989 (1989 Law), codified in the Streets and Highways Code
Sections 36500 et seq. In addition to the NBRA BID, the Corona del Mar Business
Improvement District was formed pursuant to the 1989 Law.
California law also allows for BIDs to be formed pursuant to the Property and Business
Improvement District Law of 1994 (1994 Law), codified in the Streets and Highway Code
Sections 36600 et seq. The Newport Beach Tourism Business Improvement District was
formed pursuant to the 1994 Law.
A list of some of the differences between the two BIDs is shown in the table below.
1989 Law BID
(Current Structure of the NBRA BID)
1994 Law B I D
(Current Structure of the NBTBID)
Business owner / merchant assessed
Property owner or business owner
assessed
Council can initiate formation
Stakeholders must propose formation
Majority protest stops formation
Majority support initiates formation
Assessment levied on businesses
Assessment levied on real property or
businesses
Renewed annually
Initial term of up to five years, up to a 10 -
year renewal thereafter
Higher level of day-to-day City oversight
Greater level of autonomy
Generally, BIDs formed under the 1994 Law operate more independently as the City can
contract with an "owners' association" to manage the BID's operations. In addition, this
type of BID has an initial term of up to five years, and can be renewed for a term of up to
10 years, providing for long-term planning and funding stability.
At its May 22 meeting, Council Members briefly discussed the differences in the two types
of BID and the NBRA BID was encouraged to consider changing from a BID formed under
the 1989 Law to one formed under the 1994 Law. The City Council then continued the
item pertaining to the BID's annual renewal (Attachment A) to its next meeting to allow
the NBRA BID Board an opportunity to meet and consider changing the BID's legal
structure.
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The Board held a special meeting on Wednesday, May 30, and discussed the differences
in BIDs formed under the 1989 Law and those formed under the 1994 Law, the steps
required to change the BID's legal structure, and the interest level among the Board
members of pursuing such a change. City staff attended the meeting to explain what the
process would involve and address the Board's questions.
During the meeting, Board members weighed the potential pros and cons of changing to
a different BID structure. The Board remains open to further discussing the possibility of
changing the BID's structure, but the members also expressed some concerns. Under
state law, the Board cannot use the assessment monies collected under the current BID
structure to form a new BID. (The funding could, however, be used to disestablish the
current BID.) Therefore, the Board members and/or other local business owners would
need to organize and fund the process on their own, while simultaneously operating their
restaurants and food -service businesses.
Ultimately, the Board unanimously voted in favor of continuing to investigate and evaluate
the merits of transitioning the BID; requesting the City Council's approval to renew the
BID under its current structure, a 1989 Law BID, for FY 2018-2019; and for requesting
that the City to provide $40,000 in funding support for FY 2018-2019.
Thus, City staff is recommending adoption of Resolution No. 2018-27, a Resolution of
Intention to Renew the Newport Beach Restaurant Association Business Improvement
District and Levy Assessments for the Fiscal Year 2018-2019 and Fix the Time and Place
of a Public Hearing on June 26, 2018 and allocating City funding support in the amount
of $40,000 for FY 2018-2019 to be expensed to the City Manager's Office, Economic
Development Division, 01020202-841046.
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).
ATTACHMENT:
Attachment A — May 22, 2018 Staff Report with Attachments
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PaR m CITY OF
�\`S NEWPORT BEACH
cy<`o-P
City Council Staff Report
ATTACHMENT A
May 22, 2018
Agenda Item No. 6
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
949-644-3031
TITLE: Resolution of Intention to Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments in
Fiscal Year 2018-2019 (Resolution No. 2018-27); and Approve
Funding Support Through Fiscal Year 2020-2021
ABSTRACT:
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
Board of Directors (Board) has submitted the BID's fiscal year (FY) 2017-2018 Annual
Report for City Council approval. The Board Chair has submitted a letter requesting the
renewal of the NBRA BID for FY 2018-2019 and for the City to provide ongoing funding
support through fiscal year 2020-2021.
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;
b) Approve the Newport Beach Restaurant Association Business Improvement District's
Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019
Budget;
c) Adopt Resolution No. 2018-27, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments for the Fiscal Year
of July 1, 2018 to June 30, 2019, and Fix the Time and Place of a Public Hearing for
June 12, 2018; and
d) Approve a commitment of City funding support to the Newport Beach Restaurant
Association Business Improvement District through fiscal year 2020-2021.
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FUNDING REQUIREMENTS:
The City of Newport Beach (City) contracts with a vendor to collect the stakeholder
assessments on behalf of the City and remits the money directly to the NBRA BID's bank
account. The monies are used for funding the BID's 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 NBRA
BID efforts.
Should the City Council approve the NBRA BID's renewal and the request for ongoing
funding support, the City's proposed FY 2018-2019 budget includes sufficient funding to
continue to support the NBRA BID with a City contribution of $40,000. It will be expensed
to the City Manager's Office, Economic Development Division, 01020202 841046.
DISCUSSION:
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
was formed in 1995 (Ordinance 95-55) 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 NBRA BID was established for the purpose of financing
activities and programs to benefit the businesses located and operating in the area. The
NBRA BID encompasses any food service business within the city boundaries, 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 food -related business. (A
boundary map is attached to the Resolution.)
The NBRA BID is nearing the end of its FY 2017-2018 operating period and the Board,
which serves in an advisory capacity to the City Council, has requested renewal of the
BID for FY 2018-2019. Pursuant to the 1989 Law, an annual report must be prepared and
filed with the City Council and a public hearing (scheduled for June 12) must be held prior
to the BID's renewal.
The NBRA 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 NBRA BID's FY 2017-2018 accomplishments and revenues as well as its proposed
activities and budget for the upcoming fiscal year.
Fiscal Year 2017-2018 Accomplishments
The NBRA BID Board kicked off the fiscal year developing an updated three-year
strategic plan. Specific areas of focus identified in the strategic plan include increase
marketing awareness and conversion; enhance stakeholder benefits; elevate community
profile; and ensure financial and administrative effectiveness. A brief highlight of some of
the activities from FY 2017-2018 are listed below.
1. Restaurant Week. The 2018 Newport Beach Restaurant Week was produced with 57
stakeholder businesses participating. The event celebrated the 12t" anniversary of
Restaurant Week and resulted in a 20 percent growth in customers and an estimated
$2.9 million in consumer spending. In addition to Restaurant Week, promotional
support was provided to six local culinary events.
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2. Marketing. The major focus of the NBRA BID is to provide strategic and
comprehensive marketing to keep dining in Newport Beach top of mind for consumers.
Working in partnership with Newport Beach & Company (NB&Co.), marketing efforts
included updating the Dine Newport Beach brand creative; improved stakeholder
listings and two new dining guides—catering and group dining— were launched on
the website (dinenb.com); and, for the first time, a consumer event with 125 paid
guests was held at the Lincoln Experience Center to kick-off Restaurant Week.
The annual report lists the remainder of the NBRA BID's FY 2017-2018 activities.
Fiscal Year 2017-2018 Operating Results and FY 2018-2019 Proposed Budget
The NBRA BID's total income for FY 2017-2018 is expected to be approximately
$294,500. The year-end expenditures for the approved activities is estimated to be
$270,500. It is estimated that roughly $24,000 in retained earnings will remain on deposit.
The proposed operating budget for FY 2018-2019 is attached to the NBRA BID's annual
report for the City Council's approval. The Board has identified its activities for the year
and has allocated its funding accordingly, as reflected in the table below.
FY 2018-2019 Operating Budget
Income
Stakeholder Assessments 203,000
Special Event Fees & Income 30,000
City Funding 40,000
City Special Event Grant Funds 9,000
Total Income $282,000
Expenses
Agency Fees
85,500
(marketing, operational, research and website)
Administration and Accounting
40,600
(administration and accounting fees, bank fees,
postage, supplies, dues and governance meeting)
Event Management
56,500
(marketing, operation and community partners)
Advertising
72,000
(digital, collateral materials and consumer
advertising)
Public Relations
27,400
(media relations, bloggers, contractors and social
media)
Total Expenses
$282,000
Net Income
$0
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Future of the NBRA BID
During last year's renewal process, Council Member Dixon requested staff review
reforming the two remaining BIDs (NBRA and the Corona del Mar BID) from a 1989 Law
BID to a 1994 Law BID. BIDs formed under the 1989 Law are, essentially, committees of
the City and are subject to City oversight and most of its policies and procedures. This
can be quite frustrating to small business owners used to making quick and independent
decisions. And, for many years, managing the 1989 Law BIDs took a significant amount
of staff time. BIDs formed under the 1994 Law, however, have greater (though not total)
independence. The City has a successful 1994 Law BID in the Newport Beach Tourism
Business Improvement District. Thus, the idea of reforming the City's 1989 Law BIDs to
1994 Law BIDs had been discussed for a number of years.
In the past two to three years, however, the staff time associated with managing the BIDs
has been gradually reduced as the BID Boards and their consultants have assumed more
of the day-to-day administrative tasks, and BID has picked up more of the associated
costs, of operating the BIDs. The NBRA BID Board has been diligently working on
marketing programs and activities to support its member businesses and keep the
Newport Beach restaurant market "top of mind" among diners.
This fiscal year marks the end of the previously agreed to City provided funding support.
The NBRA BID Board met on March 26 and recommended its renewal be submitted to
the City Council. As outlined in the BID's budget, the Board is including $40,000 in City
support. The NBRA BID Chair submitted a letter to the City Council requesting the BID's
renewal and requesting the City provide ongoing funding support to the BID (See
Attachment B). Should the City Council agree, the City Manager's Office will continue to
include funding in the Economic Development Division's budget in the amount of $40,000
through FY 2021.
Conclusion
The NBRA BID has been in existence since 1995 and its board members have a long
history of working hard over the years to enhance and promote the dining experience in
Newport Beach. With the City's ongoing support and funding, the Board will continue its
efforts.
Thus, City staff is recommending adoption of Resolution No. 2018-27, a Resolution of
Intention to Renew the Newport Beach Restaurant Association Business Improvement
District and Levy Assessments for the Fiscal Year 2018-2019, and Fix the Time and Place
of a Public Hearing (Attachment C) on June 12, 2018 and allocating City funding support
in the amount of $40,000 per year through FY 2021.
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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 —
NBRA BID Annual Report and Budget
Attachment B —
Letter from the NBRA BID Board Chair
Attachment C
— Resolution of Intention to Renew the NBRA BID
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ATTACHMENT A
NTWPORT BEACH �EW�RT
RESTAURANT
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Fiscal Year 2017-2018 Annual Report
As required by Section 36533 of the California Streets and Highways Code, the annual report of
the Newport Beach Restaurant Business Improvement District (NBRA BID) contains the
required information as follows:
1. Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries
2. Improvement and Activities for the Fiscal Year of July 1, 2018 to June 30, 2019
Mission, Values and Goals
Pursuant to its current Strategic Business Plan, the NBRA BID will continue its mission
through adherence to defined values and guiding principles with the following priority
initiatives from the strategic business plan:
Marketing I Promotion
• New marketing and media partnerships investigation
• Enhanced website/social media engagement
• Targeted and measurable annual marketing strategy
Communication I Education
• Engaging investor outreach strategy and program execution
• Relevant educational program development based on stakeholder needs
• Ongoing calendar of events development
Community & Stakeholder Relations I Education
• Top Foodservice issues identification
• Clearinghouse set-up for charitable causes
Targeted and measurable annual communications plan with appropriate messaging
Financial Resources and Administration
• Updated rolling year strategic plan review
• Aligned program of work and budget allocations
NBRA BID Vision 2020
The NBRA BID is a strong investor and community partner marketing group extolling the
city's quality foodservice and brand experience.
• Enhanced foodservice sector brand marketing
• Increased communications of BID stakeholder benefits
• Strengthened community and industry partnerships with higher leveraged results
• Stronger selective communitywide foodservices event involvement and promotion
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Objectives
1. Promote Newport Beach stakeholders and showcase the local culinary community to
increase diner frequency and generate stakeholder sales.
2. Grow awareness of the Dine Newport Beach brand and the Newport Beach dining
destination.
3. Foster the Newport Beach culinary community to increase stakeholder engagement.
4. Leverage the Dine Newport Beach brand and assets to generate incremental revenue
for increased program marketing and promotion.
Priority Initiatives
The NBRA BID has identified and will work in Fiscal Year (FY) 2018-2019 to implement and
exceed current and long-term NBRA BID goals and objectives through key activities to
realize its vision over the next year.
Brand I Dining Destination Awareness
NBRA BID will deploy integrated online, print, radio, public relations and social media
campaigns throughout the year during restaurant need periods, dining holidays and local
signature culinary events.
Website
The NBRA BID website, DineNB.com, will add relevant content, improved imagery,
additional dining guides, curated dining experiences and user-friendly navigation. Blog
content will not only be provided by staff, but also by food and lifestyle bloggers and
influencers. The website will strive to improve its search engine optimization best practices
and focus on Newport Beach dining and restaurant keywords to index higher in organic
search.
Mobile
As the majority of diners use mobile devices to explore culinary offerings and events, the
NBRA BID will create an enhanced mobile experience for diners to easily search restaurants
by neighborhood, cuisine, price point and location. In addition to user-friendly access to
dining guides and curated dining experiences, the Dine NB mobile experience will be
optimized for easy online reservation capability.
Digital Marketing
The Newport Beach dining destination, culinary promotions and events will be advertised
with targeted paid search ads on the major search engines and social networks. In addition,
the digital marketing team will leverage key industry and media partners to promote the
Newport Beach dining destination, Dine NB.com and program messaging.
Email
The Dine Newport Beach weekly newsletter will deliver relevant information to diners in a
timely manner. The newsletter will provide motivating content including culinary round -ups,
dining trends, restaurant offers and promotions, and dining events. The NBRA BID will
continue to focus on acquisition strategies to grow its subscriber list, as well as leverage
partner channels to deploy program messaging.
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Social Media
Trending culinary topics, images and video content on the existing social channels will drive
followers and build online engagement. The NBRA BID will conduct strategic outreach to
key culinary, travel and lifestyle influencers in order to engage with these personalities to
broadcast to the larger social population and expand the networks.
Media Relations
The NBRA BID will develop relationships and grow engagement with food and travel writers,
influential lifestyle bloggers and media professionals to ensure that the local culinary
community, its stakeholders and their promotions and events receive editorial coverage in
local, regional and national media outlets throughout the year.
Advertising
Marketing campaigns with fresh creative and messaging will generate consumer awareness
and keep the Newport Beach dining destination, the local culinary community and
DineNB.com top of mind in the market. Advertising will appear in a variety of media
including online, print and radio outlets, as well as in partner channels.
Signature Event
The NBRA BID will produce Newport Beach Restaurant Week that not only promotes the
participating local restaurants, but also positions Newport Beach as Orange County's
premier dining destination.
Concierge Service
The NBRA BID will provide a toll-free phone number serviced by the Newport Beach &
Company concierge located at Fashion Island. The concierge service provides restaurant
and dining recommendations and reservation assistance.
Promotional Materials
Marketing collateral will be created to promote DineNB.com and its comprehensive online
dining guide. Collateral will be distributed throughout Orange County at airports, hotels,
office centers and key visitor locations, as well as at a variety of local events throughout the
year.
Video Content
Messaging and content about Newport Beach dining will be produced in partnership with
Newport Beach TV. An increased library of video content will be utilized to tell the story of
Newport Beach as a dining destination and deployed through a variety of NBRA BID and
partner channels.
Industry & Community Relations
The NBRA BID will support organizations and events that assist in promoting the local
restaurant and culinary community. Support will include cooperative marketing, online and
social media support, public relations assistance and promotion of events with local
restaurant and culinary components.
Stakeholder Communications
The NBRA BID will engage NBRA restaurants, partners and local stakeholders with email
and occasional print communications. The quarterly NBRA newsletter includes information
on BID news and meetings, promotional opportunities, as well as industry information and
events.
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Civic Event Participation
The NBRA BID will participate and contribute to a variety of local civic events including the
Annual Newport Beach Mayor's Dinner and the Newport Beach Police Appreciation
Breakfast.
Professional Relationships
The NBRA BID will maintain a variety of industry relationships and memberships with, but
not limited to, Newport Beach & Company, the OC Visitors Association, California
Restaurant Association and the Newport Beach Chamber of Commerce.
Annual Meeting
The NBRA BID will hold its Annual Meeting in March at a local venue, where it will provide a
review of the financial standing of the NBRA BID, review marketing and promotion results,
discuss goals, objectives and programs for the upcoming fiscal year, and obtain feedback
from the general membership.
BID Marketina. Administration & Accountin
The NBRA BID will contract with an appropriate, full-service vendor to handle all marketing,
communications, public relations, website management, administrative and accounting
services.
BID Operational Costs
The NBRA BID will continue to pay for all its operational costs including approved contracts,
postal mailings, insurance, bank fees and other administrative expenses.
3. The Cost of These Activities is Projected as Follows:
Office Supplies
Postage
Bank/Merchant Fees
Membership Dues
Governance Meeting Expenses
Independent Contractors
Blo ers
TOTAL
$950
$850
1 $2,500
$300
$3,500
$10,000
$12,000
Marketing Consultant Fees
$60,000
BID Administration Fees
$18,000
BID Accounting Services Fees
$18,000
Operational Expenses & Insurance
$12,000
Advertising - Consumer
$60,000
Community Partner Events
$3,000
Event Marketing Expenses
$40,000
Event Operating Expenses
$10,000
Research
$5,500
Collateral Production Expenses
$5,000
Social Media
$2,400
Website Maintenance
$8,000
Digital Advertising
$7,000
Media Relations
$3,000
Total Expenses
$282,000.00
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4. The Method and Basis of Levying the Assessment Shall be as Follows:
The benefit assessments will be collected by the City in one installment at the beginning of
the fiscal year, and shall be pro -rated for new businesses that open during the year. The
benefit assessment will be levied upon persons conducting business within the Restaurant
Association Business Improvement District as follows:
Full Service Restaurant (e.g., with wait service)
$600
Fast Casual Eatery (e.g., order at the counter)
$500
Grocery or Market
$500
Coffee, Tea or Specialty Shop
$150
Dessert, Bakery or Treat Shop
$150
Juice Bar or Smoothie Shop
Catering Company
$150
$150
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 amount added shall in no event exceed fifty percent (50%) of the
annual assessment amount due.
5. Sources of Contributions Other Than Levied Assessments
In addition to the anticipated income from the levied assessments and late fees, the NBRA
BID FY 2018-2019 budget includes $40,000 in funds from the City. NBRA estimates
receiving $30,000 in fees for special events, in addition to $9,000 in potential grant funding
from the City for a special event.
Stakeholder Assessments
Special Event Fees & Income
$203,000
$30,000
City of Newport Beach Matching Funds $40,000
City of Newport Beach Special Event Grant Funds $9,000
Total Operating Income $282,000.00
6. Accomplishments in Fiscal Year 2017-2018
FY 2017-2018 was a successful year for the NBRA BID as it completed the following projects
and initiatives:
• In partnership with Newport Beach & Company, the NBRA BID continued to evolve the
consumer facing Dine Newport Beach brand with new brand creative to market
restaurants, foodservice establishments and the local culinary community to diners.
NBRA BID continued the development and ongoing maintenance of the NBRA BID
website, DineNB.com, with stakeholder listing information, photos, menus, reviews and
online booking capabilities.
• The website was updated throughout the year with robust content and videos on the
Newport Beach Culinary Community, dining guides, stakeholder offers and events,
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restaurant industry news and NBRA BID information. New online dining guides created
for the website include:
o Catering Dining Guide
o Group Dining Guide
• NBRA BID executed three promotional campaigns throughout the year for destination
and brand awareness to communicate the unique dining options available in the city.
0 2017 Summer Campaign — 52 Weeks of Dining
0 2018 Restaurant Week Campaign — Beyond the Menu
0 2018 Spring Campaign — Your Table Awaits
Print advertising appeared throughout the year in a variety of media outlets with in -
market distribution through subscribers and in local retail stores and markets, regional
hotels and concierges, visitor centers, airports, timeshare and vacation rentals and
luxury apartments.
o Newport Beach Visitor Guide o OC Weekly
o OC Guestbook o LA Times
o OC Official Visitor Map o The Daily Pilot
o DiningOut Magazine o NB Indy
o Newport Beach Magazine o NBFF Variety Issue
o Laguna Beach Magazine
Digital advertising throughout the year helped to boost brand and destination awareness,
as well as increased website visits. Online advertising and promotions appeared in the
following media outlets
o Google Display Network
o Google AdWords
o TripAdvisor
o Facebook
o Pandora
o Digital Display for both Mobile & Desktop viewing
• The consumer newsletter boosted distribution to weekly to its diner subscriber base in
order to keep the Newport Beach dining destination and NBRA BID stakeholders top of
mind in a competitive Orange County culinary marketplace. The newsletter includes
blogs and stories from respected local food and lifestyle bloggers, as well as timely
information on stakeholder offers and local culinary events.
• The NBRA BID conducted ongoing outreach throughout the year to food and travel
writers, lifestyle bloggers and key media in local and regional drive markets to generate
awareness for Dine Newport Beach the Newport Beach culinary community. The PR
team hosted 50 members of the media at a reception to kick-off Newport Beach
Restaurant Week in January at Lincoln Experience Center.
• The NBRA BID hosted a consumer event at the Lincoln Experience Center "Culinary
Journey Kickoff Event" which followed the media event. This event included 125 paid
guests and 24 VIP guests enjoying bites from 7 NBRA restaurants
• Through consistent and strategic social media outreach on Facebook, Twitter and
Instagram, NBRA BID experienced tremendous growth in the social channels, as well as
increased online engagement with consumers and stakeholders.
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• The NBRA BID outreached to key culinary and dining influencers in order to engage with
these personalities to broadcast to the larger social population and expand the network.
• The NBRA BID conducted messaging and promotion through its social channels on
restaurant offers, culinary events, dining trends and restaurant information on a weekly
basis
The NBRA BID and Dine Newport Beach provided promotional support to local culinary
events including:
o Golden Foodie Awards
o Newport Beach Wine & Food Festival
o Newport Beach Film Festival
o Shop & Dine in CDM
o Christmas Boat Parade
o Pacific Food & Wine Classic
• The NBRA BID produced the 2018 Newport Beach Restaurant Week with 57
participating restaurants. The event celebrated the 12th anniversary of Restaurant Week
marking "Beyond the Menu." The marketing and promotional efforts included:
o Advertising — Print ads appeared in DiningOut Magazine, Newport Beach
Magazine, The Daily Pilot, The Coastline Pilot and Laguna Beach Magazine.
Digital ads appeared online through the Google Ad Network, Facebook,
Instagram, TripAdvisor, Los Angeles Times Digital Media, Eventful,
VisitNewportBeach.com, DineNB.com and OpenTable. Broadcast advertising
appeared on 104.3 MyFM, and Pandora. Paid and in-kind advertising generated
over 6 million impressions.
o PR Campaign — Editorial content, blogger coverage, calendar listings and a
reception to promote the event generated 32 articles, 100 social media posts and
over 558,000 social media impressions in media outlets In Orange County, Los
Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. On air
coverage of the event appeared on 104.3 MyFM and NBTV. The campaign
resulted in generating 301 million media impressions.
Promotions — Over 100,000 promotional cards and posters were distributed
throughout the local area in hotels, visitor centers, airport, apartment
communities, at local events, participating restaurants and in City of Newport
Beach water bills in December and January. Outdoor promotional signage and
banners appeared throughout Newport Beach and Corona del Mar.
o Email Blasts — Email communications went out through Dine Newport Beach,
Visit Newport Beach, OpenTable, YELP and Irvine Company email database
over 1.3 million consumers throughout LA and Orange County.
o Results — OpenTable reported an avg growth in customers by 20percent; 91
percent of NBRW consumers would recommend to a friend Restaurants reported
sales growth of 18 percent during Restaurant Week. There were over 13 million
advertising and media impressions generated for the event. The overall event
resulted in an estimated consumer spend of $2.9 million.
• The NBRA BID published a quarterly industry newsletter to its stakeholders that includes
timely information on industry and association news and events, as well as promotional
opportunities.
5-15
• Through the partnership with Newport Beach & Company, the NBRA BID and Dine
Newport Beach continued providing a toll-free phone number and live concierge
assistance to diners seeking information on Newport Beach restaurants through the on-
site concierge desk located at Fashion Island.
• The NBRA BID participated and/or contributed to the following community programs and
events: Newport Beach Mayor's Dinner, California Restaurant Association Orange
County Chapter, Newport Beach & Company Annual Marketing Outlook Dinner, Newport
Beach Police Appreciation Breakfast and other community events.
• The NBRA BID continued to maintain relationships with Newport Beach & Company, OC
Visitors Association, California Restaurant Association and the Newport Beach Chamber
of Commerce.
• Newport Beach & Company is under contract with the NBRA BID to handle all
marketing, public relations, communications, website management BID administrative
services and accounting services.
• The NBRA BID continued to offer credit card processing services for members to pay
their assessment and event participation fees online using a credit or debit card.
• The NBRA conducted a survey of it stakeholders and a planning session to develop an
updated three-year strategic plan for the organization.
• The NBRA BID conducted outreach and recruited new stakeholders to serve on the
NBRA BID's Board of Directors.
• The NBRA BID held its Annual Meeting on the Just Dreamin' yacht (part of the
Hornblower boats), where it provided a review of the financial standing of the NBRA,
reviewed marketing and promotion results, discussed goals objectives and programs for
the upcoming fiscal year, and obtained feedback from the general membership.
Fiscal Year (FY) ODeratina Results
During FY 2017-2018, NBRA collected approximately $189,000 in stakeholder assessments
and approximately $26,500 in stakeholder assessment late fees. The City contributed $40,000
as the fourth installment of a five-year commitment to support the BID. NBRA received $31,275
in participation fees for 2018 Newport Beach Restaurant Week, and a grant of $9,000 from the
City in support of Newport Beach Restaurant Week. Total income for FY 2017-2018 is expected
to be approximately $294,500.
NBRA will spend by fiscal year end approximately $270,500 for approved activities, funded by
the FY 2017-2018 income.
Cnnclusinn
The stakeholders of the Newport Beach Restaurant Association BID wish to thank the Newport
Beach City Council for its continued financial support and efforts on behalf of the NBRA.
5-16
\:z-WPORT BEACH
RESTAURANT ,
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Operating Budget
July 1, 2018 — June 30, 2019
Stakeholder Assessments
$203,000
Special Event Fees & Income
$30,000
Cit of Newport Beach MatchingFunds
$40,000
City of Newport Beach Special Event Grant Funds
$9,000
Total Income
$282,000
EXPENSES
Office Supplies
TOTAL
� $950
Postage
$850
Bank/Merchant Fees
$2,500
Membership Dues
$300
Governance Meeting Expenses
$3,500
Independent Contractors
$10,000
Bloggers
$12,000
Marketing Consultant Fees
$60,000
BID Administration Fees
$18,000
BID Accounting Services Fees
$18,000
Operational Expenses & Insurance
$12,000
Advertising — Consumer
$60,000
Community Partner Events
$3,000
Event Marketing Expenses
$40,000
Event Operating Expenses
$10,000
Research
$5,500
Collateral Production Expenses
$5,000
Social Media
$2,400
Website Maintenance
$8,000
Digital Advertising
$7,000
Media Relations
$3,000
Total Expenses
1 $282,000
5-17
ATTACHMENT B
NEWPORT BEACH
RESTAURANT
ASSOCIATION
May 9, 2018
Newport Beach City Council
100 Civic Center Drive
Newport Beach, CA 92660
Re: Request for Continued Funding Support for NBRA BID
Dear Mayor Duffy and City Council Members,
SEW Pp�,T
CqC! Fp Aty�P
On behalf of the Advisory Board of Directors for the Newport Beach Restaurant Association
Business Improvement District (NBRA BID), I would like to thank the City Council for its support of
the NBRA BID over the past 23 years.
In addition to the roughly $189,000 the NBRA BID receives annually from member assessments,
the City has provided the NBRA BID with an annual support of $40,000 in a five-year agreement,
which concludes at the end of FY 2017-18. As we look forward to dedicating our time and efforts
toward the BID's 2018- 2019 FY goals and priorities, the Board would like to request continued City
support funding at the same contribution of $40,000 annually for a three- year period beginning FY
2018-2019.
On behalf of the NBRA BID, we greatly appreciate the City Council's funding to support the NBRA
BID, and we look forward to continuing to showcase the local culinary community that will increase
diner frequency and generate local culinary sales.
Thank you in advance.
Sincerel f,
Jordan Otterbein
NBRA BID Board President
Owner, A Restaurant
cc: Dave Kiff, City Manager
NBRA BID Board of Directors
Gary Sherwin, Newport Beach & Company
Tara Finnigan, Deputy City Manager
Mary Locey, Public Information/Management Analyst
5-18
ATTACHMENT C
RESOLUTION NO. 2018 - 27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE NEWPORT BEACH
RESTAURANT ASSOCIATION BUSINESS
IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS
FOR THE FISCAL YEAR OF JULY 1, 2018 TO JUNE 30,
2019, AND FIX THE TIME AND PLACE OF A PUBLIC
HEARING
WHEREAS, the Newport Beach Restaurant Association Business Improvement
District ("NBRA BID") was established in 1995 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 of the City of Newport Beach ("City") for each fiscal year;
WHEREAS, the advisory board, known as the NBRA BID Board of Directors, has
prepared an Annual Report for the 2017-2018 fiscal year which is on file in the Office of
the City Clerk ("Annual Report"); and
WHEREAS, on May 22, 2018, the Annual Report was filed with and approved by
the City Council.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby declares its intention to renew the NBRA BID
for fiscal year July 1, 2018 to June 30, 2019, pursuant to the 1989 Law.
Section 2: The City Council hereby declares its intention to levy assessments for
the NBRA BID for the fiscal year July 1, 2018 to June 30, 2019, pursuant to the 1989
Law. Such benefit assessment shall be as follows:
Certified Farmer's Markets, mini -marts, yachts and charters, banquet
facilities, private membership clubs, theaters, and aas stations.
Section 3: The penalty for delinquent payments shall be equal to that
established for delinquent business license fees pursuant to Newport Beach Municipal
5-19
Resolution No. 2018 -
Page 2 of 3
Code Chapter 5.04, 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 NBRA 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. Brochure development and distribution;
C. Promotion of public events;
D. General promotion of restaurant trade activities;
E. Educational and training classes for members; and
F. Memberships in various organizations deemed to promote dining in
Newport Beach.
The implementation of these actions is described in the Annual Report, which is on file
with the City Clerk's Office located at 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660.
Section 6: 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 food -
related business within the boundaries of the City of Newport Beach is part of the NBRA
BID, as set forth with greater specificity in the boundary map attached hereto, and
incorporated herein by reference.
Section 7: The time and place for a public hearing on the NBRA BID renewal is
set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 12, 2018, 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 NBRA
BID which pay fifty percent (50%) or more of the total assessments to be levied, no further
proceedings to renew the NBRA 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
NBRA BID, those types of improvements or activities or benefit zones shall be eliminated.
5-20
Resolution No. 2018 -
Page 3 of 3
Section 9: Further information regarding the proposed NBRA 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 recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
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: 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 Regulations, Title 14, Chapter 3, because it
has no potential for resulting in physical change to the environment, directly or indirectly.
Section 14: 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 22nd day of May, 2018.
ATTEST:
Leilani I. Brown
City Clerk
APP,RQVED AS TO FORM:
CITY A QRfiJEY'S OFFICE
A-arbn C.
City Attor
Attachment: Boundary Map
Marshall "Duffy" Duffield
Mayor
5-21
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