HomeMy WebLinkAbout06 - Resolution of Intention to Renew the CDMBID and Levy AssessmentsTO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
June 12, 2018
Agenda Item No. 6
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
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 Corona del Mar Business
Improvement District and Levy Assessments in Fiscal Year 2018-
2019 (Resolution No. 2018-28) 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 Corona del Mar Business Improvement District (CdM BID) for Fiscal Year 2018-
2019 to allow the CdM 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 31 to discuss the matter
and develop a response. This staff report includes a brief summary of the Board's
May 31 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 Corona del Mar Business Improvement District's Fiscal Year 2017-2018
Annual Report and its Proposed Fiscal Year 2018-2019 Budget;
c) Adopt Resolution No. 2018-28, 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, 2018 to
June 30, 2019, and Fix the Time and Place of a Public Hearing for June 26, 2018; and
d) Approve $40,000 in City funding support to the Corona del Mar Business Improvement
District for Fiscal Year 2018-2019.
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2018-2019
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FUNDING REQUIREMENTS:
Should the City Council approve the CdM 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 CdM 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
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. In addition
to the CdM BID, the Newport Beach Restaurant Association 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 CdM 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 CdM 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 CdM BID Board an opportunity to meet and consider changing the BID's legal
structure.
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2018-2019
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The Board held a special meeting on Thursday, May 31, 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 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 discussion, Board members expressed concerns related to several aspects of
changing to a different BID structure. 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 businesses. There was also
concern that there would not be enough support among the businesses to establish a
new BID.
Ultimately, the Board unanimously voted against pursuing a change in the BID's legal
structure and voted in favor of requesting the City Council's approval to renew the BID
under its current structure, a 1989 Law BID, for FY 2018-2019 and for the City to provide
$40,000 in funding support for FY 2018-2019 (See Attachment B for an updated letter
from the CdM BID Board Chair). City staff will continue to work with the CdM BID Board
to address any and all future options.
Thus, City staff is recommending adoption of Resolution No. 2018-28, a Resolution of
Intention to Renew the Corona del Mar 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).
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Attachment A — May 22, 2018 Staff Report with Attachments
Attachment B — June 5, 2018 CdM BID Letter
6-3
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41F0,, City Council Staff Report
ATTACHMENT A
May 22, 2018
Agenda Item No. 7
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 Corona del Mar Business
Improvement District; Levy Assessments in Fiscal Year 2018-2019
(Resolution No. 2018-28); and Approve Funding Support Through
Fiscal Year 2020-2021
The Corona del Mar Business Improvement District (CdM BID) Advisory Board of
Directors (Board) has submitted the BID's annual report and budget for City Council
approval. The Board also submitted a letter requesting the renewal of the CdM BID for
fiscal year 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 Corona del Mar Business Improvement District's Fiscal Year 2017-2018
Annual Report and its Proposed Fiscal Year 2018-2019 Budget-,
c) Adopt Resolution No. 2018-28, 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, 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 Corona del Mar Business
Improvement District through fiscal year 2020-2021.
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2018-2019
Page 2
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 CdM 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 CdM
BID efforts.
Should the City Council approve the CdM BID's renewal and the request for ongoing
funding support, the City's proposed FY 2018-2019 budget includes sufficient funding for
the City's contribution of $40,000. It 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
(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 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 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 2017-2018 accomplishments and revenues as well as its proposed activities and
budget for the upcoming fiscal year.
Fiscal Year 2017-2018 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 efforts to
revitalize the Business District and improve the economic growth of its member
businesses. Highlights of some of the projects from FY 2017-2018 are listed below.
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
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1. Parking. Parking throughout the business district has been an ongoing concern
for the Board, the member businesses and the neighboring residents. The Board
formed a subcommittee that includes CdM BID Board representatives as well as
representatives from the Corona del Mar Residents Association. The
subcommittee recommended and the Board agreed to conduct an updated parking
study. A parking consultant was contracted by the City in October 2017, the
contract is funded by the CdM BID. A parking count was conducted in early
February 2018 and the preliminary results are under consideration for further
action in FY 2018-2019. The CdM BID Board has allocated $10,000 toward this
effort.
2. Flower Street Signs. The CdM BID Board completed its project to change out the
street signs along East Coast Highway from the City's standard design to a
custom-made decorative sign. The signs depict the flowers representing the
intersecting streets along East Coast Highway. To help offset the cost of the
project, the old signs were auctioned off during the annual Christmas Walk event
and remaining signs were sold at the Annual Town Meeting. Approximately $1,750
was raised and deposited in the BID's budget. There are still signs available and
a final attempt to sell them will be the CdM Scenic 5k event. Any remaining signs
will be returned to the City for recycling.
3. Explore CdM Campaign. In partnership with the CdM Chamber of Commerce,
the Explore CdM marketing campaign was launched to encourage shopping local.
New street light banners were created and are installed on a year-round basis
along East Coast Highway throughout the business district. The banners are
switched out as needed for other community events. The brand identity created for
the Explore CdM program has been used for additional marketing materials and
advertising to attract shoppers and diners to the unique offerings available in the
CdM Business District.
The remainder of the FY 2017-2018 activities listed in the annual report include 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 for the events and activities that occur
within the CdM BID boundaries.
FY 2017-2018 Operating Results and FY 2018-2019 Proposed Budget
The CdM BID started FY 2017-2018 with a large fund balance due to the delay of several
projects. As indicated on pages 2 to 3 of the staff report, the Board undertook many
projects during the FY. The estimated year-end operating budget for the CdM BID's FY
2017-2018 is reflected in the table below.
Estimated FY 2017-2018 Year -End Operating Budget
Income (City Funding, Assessments and Late Fees) 142,000
Fund Balance (Retained Earnings) 115,229
Total Income and Fund Balance $257,229
Total Expenditures
Fund Balance (Retained Earnings for FY 2018-2019)
$199,398
$57,831
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
and Levy Assessments in Fiscal Year 2018-2019
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The proposed operating budget for FY 2018-2019 is attached to the CDM BID's annual
report for the City Council's approval. The Board has identified several project goals for
the year and has allocated its funding accordingly, as reflected in the table below.
FY 2018-2019 Operating Budget
Income
City Support Funding 40,000
Late Fees 2,000
Member Assessments 100,000
Total Income $142,000
Expenses
Highway D6cor
34,000
Website Maintenance and Support
8,344
Marketing and Administration
64,900
Streetscape and Maintenance
9,000
Landscaping
29,070
Administration (Bookkeeping)
19,072
Improvements
34,592
Outreach
1,000
Total Expenses
$199,978
Net ordinary income
(57,978)
Other Income Expense (Retained Earnings)
57,978
Net Income $0
Future of the CdM BID
During last year's renewal process, Council Member Dixon requested staff review of the
possibility of reforming the two remaining BIDs (CdM and the Newport Beach Restaurant
Association BID) from 1989 Law BIDs to 1994 Law BIDs. 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 much of the associated
costs, of operating the BIDs. The CdM Board has been working diligently to keep the
district successful (and to try to overcome some of the challenges currently facing brick -
and -mortar retail establishments) and staff is concerned that a significant change to the
structure of the BID at this time would disrupt the BIDs efforts and potentially, the progress
it's making.
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Resolution of Intention to Renew the Corona del Mar Business Improvement District
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This fiscal year marks the end of the previously agreed to City provided funding support.
The CdM BID Board met on April 26 and recommended the Chair submit 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 2020-2021.
Conclusion
The CdM BID has been in existence since 1997 and its board members have a long
history of working hard to enhance the business district and provide a comprehensive
marketing effort to attract businesses and visitors. With the City's ongoing support and
funding, the Board will be able to continue its efforts.
Thus, City staff is recommending adoption of Resolution No. 2018-28, A Resolution of
Intention to Renew the Corona del Mar 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.
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
— Letter from the CdM BID Board Chair
Attachment C
— Resolution of Intention to Renew the CdM BID
.:
40 °Fz Corona del Mar Business Improvement District
ANNUAL REPORT
Year -End Report for FY 2017-2018
Improvements and Activities for FY 2018-2019
This is the annual report for the 22nd 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, 2018 to June 30, 2019.
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) 2018-2019. These expenditures are consistent
with the BID's Vision 2020 plan.
2.1 Parking & Transportation Improvements
The BID Advisory Board of Directors (Board) is currently engaged in a parking study
being performed by Walker Consultants. As a carry-over project from FY 2017-2018,
the Board will be putting forth a concentrated effort on the studies preliminary
findings and the implementation of potential solutions to improve parking within the
Corona del Mar Business District and adjacent residential areas. This continued
effort involves analyzing possible solutions and working with City staff, property
owners and residents on the items identified in the study to potentially develop a
change in the City's parking requirements, implement employee parking solutions,
install parking way -finding signs, and achieve a better overall parking environment.
2.2 PCH Improvements (PCH through the CdM Business District)
The BID Board will continue to enhance the appearance and safety of the Business
District through various physical improvement projects and has budgeted the
necessary funds for FY 2018-2019. Projects under consideration include
improvements to the south entry, sidewalk treatments, intersection enhancements
and an updated urban planning charrette.
2.3 Landscaping & Tree Well Maintenance
The BID's FY 2018-2019 budget includes funding for the continued maintenance
and necessary improvements of the tree well landscaping along PCH. The
landscape maintenance is provided through a City agreement to ensure the proper
care and cultivation of the 180 tree wells. The Board will continue to provide
oversight of overall landscaping in the village while working closely with City staff
and the contracted landscape vendor.
2.4 Streetscape & Street Furniture Maintenance
The BID's FY 2018-2019 budget includes funding for the maintenance and
refurbishment of the existing street furniture, which includes trash receptacles,
benches, bike racks and bus stops to ensure quality aesthetics. In addition, the
CdM BID FY 2017-2018 Annual Report I Page 1
Board will work with the City to ensure the existing newspaper racks continue to be
properly maintained.
2.5 North Gateway Entry Electrical Maintenance (MacArthur & PCH)
The BID's FY 2018-2019 budget includes funding to maintain the BID requested
electrical system in the recently improved gateway area and landscaped median to
ensure the system stays in good -working.
2.6 Business District Holiday Decor Program
The BID's FY 2018-2019 budget provides for the annual installation and
maintenance of the median holiday decorations within the Business District. The
holiday decor program is provided through a City agreement. The Board will work
with the contract vendor and City staff on the annual permits, lighting and
maintenance, as well as the installation and breakdown.
B. VISION 2020 — MARKETING & MEMBER BENEFITS
2.7 Website & Communications
In FY 2017-2018, the BID launched a new informative and interactive website with
enhanced features to improve communications with and services for its members.
The website includes a business directory feature to aide in marketing BID members
to the public and the ability for members to pay their assessments online. Other
features include the addition of news, events and meeting postings with an
integrated connection to the BID's social media platforms. The Board will continue
to maintain, update and keep optimization current for enhanced member marketing,
communications and information sharing efforts.
2.8 Marketing & Media Campaigns
During FY 2017-2018, the Board launched a "Shop Local" marketing campaign in 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.
The Shop Local program includes a new design theme that is strategically used
throughout the marketing components such as street light banners, direct mail
pieces, newspaper advertisements, events and more. The BID's FY 2018-2019
budget includes funding to continue this campaign and to provide for additional
campaign components throughout the fiscal year. The Board will maintain the
existing annual marketing programs and develop new strategic campaigns to
promote economic growth within the business district. The Board will continue to
enhance its media relations with the local press and community associations and
maintain or develop new marketing collateral.
2.9 CdM BID Member Directory, Window Decals & Informational Brochures
The BID's FY 2018-2019 budget includes funding to continue to co -produce and co -
publish the annual Corona del Mar Business Directory (Directory) with the CdM
Chamber of Commerce. The directory lists and markets CdM BID members in a
colorful print publication that encourages shopping local. The directory is mailed to
10,000 households in Corona del Mar and the surrounding areas. The BID's annual
Vision 2020 brochures listing the BID's recent accomplishments and future goals will
be updated and distributed with the annual member assessment mailings in July and
throughout the year. The Board will continue to mail members who have paid their
CdM BID FY 2017-2018 Annual Report I Page 2
6-10
assessments a membership decal signifying they are members in good standing.
2.10 Christmas Walk
The BID will contribute funds from the FY 2018-2019 budget to the CdM Chamber
of Commerce as a sponsor for the annual Christmas Walk event, which successfully
stimulates the economic climate of the Business District and provides a promotional
platform for all businesses within the BID boundaries and beyond.
2.11 PCH Dolphin Topiary Program
The BID's FY 2018-2019 budget includes funding to coordinate the festive seasonal
decorations of the dolphin topiaries at the intersection of Marguerite and PCH. This
continues to be an embraced tradition by the community.
2.12 Street Light Banner Program
The BID's FY 2018-2019 includes funding for the rotating street light banner
program, which highlights the annual CdM signature community events (Annual
Town Meeting, Scenic 5K, Christmas Walk) as well as the happy holidays banners
and the shop local banners. The Board will continue to work with the contract vendor
and City staff on permits, schedules and installation and removal. The street light
banner program continues to provide the Business District a sense of community
spirit, pride and promotion.
2.13 Marketing Consulting & Reporting
The BID's FY 2018-2019 budget has funding allocated to continue the marketing
consulting contract with the CdM Chamber of Commerce to formulate, coordinate
and administer the BID's marketing efforts and provide routine reports to the Board
on the results of the marketing activities.
C. VISION 2020 — OUTREACH
2.14 Annual Town Meeting
The Board will continue to co -host the Annual Town Hall 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 BID members
and local community members. The annual meeting is required as stated in the BID
bylaws and is co -hosted with the CdM Chamber of Commerce and the CdM
Residents Association.
2.15 Business Beautification Award Program
The FY 2018-2019 BID budget includes funding to continue to pay for and manage
the bi-monthly Business Beautification Award Program. The program identifies
member businesses that have renovated, remodeled or enhanced the storefront
aesthetics, which contributes to the overall Vision 2020 Plan. Recipients of the award
receive media attention and an award at a community event.
2.16 Outreach Materials & Mailings
The Board 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.
CdM BID FY 2017-2018 Annual Report I Page 3
6-11
D. VISION 2020 — ADMINISTRATION
2.17 Administrative Consulting & Reporting
The BID's FY 2018-2019 budget provides funding for the administrative consulting
contract between the City and the CdM Chamber of Commerce. The services include
providing support to formulate, coordinate and administer the BID and report to the
Board routinely on the results and issues that may arise. Activities include preparing
and coordinating agendas, memos, communications and/or reports. Other duties
include serving as a liaison with City staff and providing a post -meeting action item
summary to the City Manager's Office. The Board continues to assume some
administrative responsibility to include taking meeting minutes.
2.18 Administrative Expenses
The BID's FY 2018-2019 budget includes funding for the CdM Chamber of
Commerce to serve as the designated consultant to provide for a physical mailing
address, telephone service, office equipment, meeting space and storage of BID
collateral.
2.19 Financial Reporting, Bookkeeping & Billing Services
The BID's FY 2018-2019 budget includes funding for its bookkeeping services to be
provided through an agreement between the City and Community Business
Solutions. Bookkeeping services consist of coordinating the member assessment
billing, managing the accounts receivable and payable, preparation of the monthly
financial reports and providing financial reporting to City staff and BID Board.
3. Estimated Cost of Improvements & Activities for FY 2018-2019
Improvements $ 34,592
Landscaping (Maintenance & Other) $ 29,070
Streetscape (Maintenance & Other) $ 9,000
Marketing & Administration $ 66,900
Website (Hosting, Tech Support, Maintenance & Marketing) $ 8,344
Holiday Decor & Lite Pole Banner Program $ 34,000
Outreach $ 1,000
Administration & Financial Services $ 19,072
TOTAL $ 199,978
2020 Vision Plan Revisions
The Board continues to re-evaluate and update the 2020 Vision Plan. Subcommittee meetings
and workshops to develop new objectives will continue in FY 2018-2019 and the findings will
be shared with BID and community members.
4. Method and Basis of Levying the Assessment
The benefit assessments will be collected in one installment. The benefit assessment shall be
equal to 150 percent 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 50 percent 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
CdM BID FY 2017-2018 Annual Report I Page 4
6-12
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 shall be pro -rated for new businesses that open during the
fiscal year. The Board is working to improve the delinquent member assessment collection
effort.
5. Surplus Carryover from Fiscal Year 2017-2018
It is estimated that approximately $58,000 will be carried over as retained earnings from FY
2017-2018 to FY 2018-2019.
6. Sources of Contributions from Other Than Levy
In addition to the annual BID assessments, the CdM BID's FY 2018-2019 budget includes
$40,000 in funding from the City. The Board Chair has submitted a letter to the City Council
requesting the City's ongoing funding support of $40,000 per fiscal year for three years.
7. Prior Year Accomplishments
FY 2017-2018 was successful for the CdM BID. The Board successfully completed projects
and programs, maintained existing programs and developed new projects within the CdM
Business District as reflected in the estimated FY end expenses as shown below.
Fiscal Year 2017-2018 Projects and Programs*
Improvement Projects $ 57,600
District Parking Study, Flower Street Sign Improvement Project, Gateway Electrical
Improvements.
Landscaping $ 38,168
Tree -well landscaping maintenance and Irrigation repairs
Holiday Decor & Street Light Banner Program $ 28,430
Dekra-lite Contract
Website Management & Communications $ 7,200
Management, Maintenance, Hosting, technical support and Marketing.
Marketing, Administration & Outreach $ 49,000
Shop Local Marketing Campaign and components, BID brochures, website, CdM
Business Directory, Dolphin Topiary Program, Beautification Program, Christmas
Walk sponsorship, membership decals, annual meeting, mailings, storage and
physical office facilities, Board administration, agendas, reports and communications
Administration & Accounting $ 19,000
Billing, financial reporting, Bookkeeping, mailings
*Estimated fiscal -year end TOTAL $ 199,398
CdM BID FY 2017-2018 Annual Report I Page 5
6-13
Corona del Mar Business Improvement District
Proposed Operating Budget
Fiscal Year July 1, 2018 thru June 30, 2019
Ordinary Income Expense Budget
Income
City Funds 40,000
Late Fees 2,000
Member Assessments 100,000
Total Income 142,000
Expense
Highway Decor
34,000
Website Maintenance and Support Services
8,344
Marketing and Administration Services
64,900
Streetscape/Maintenance
9,000
Landscaping
29,070
Administration (Bookkeeping Services)
19,072
Improvements
34,592
Outreach
1,000
Total Expenses
199,978
Net Ordinary Income
Other Income Expense (Retained Earnings/Carry Over)
Net Income
(57,978)
57,978
0
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Advisory Boord
Bernie Svalstad
Chairperson
Scott Laidlaw
Vice Chair
Keith Dawson
Treasurer
Ed Hanley
Secretary
Shawn Lim
Director
Jasmine Mortazavi
Director
Hamid Kianapur
Director
Scott LeFleur
Director
Ernie Caponera
Director
CDM BID
Financial Reporting
Community Business
Solutions
(949)200-9851
Marketing &
Administration
Corona del Mar
Chamber of
Commerce
(949) 673-4050
Corona del Mar
BUSINESS IMPROVEMENT DISTRICT /City of Newport Beach
May 9, 2018
Dear Newport Beach City Council,
RE: Reauest for Continued Funding Su000rt for the CDM BID
On behalf of the Advisory Board of Directors for the Corona del Mar Business
Improvement District (CdM BID), I would like to thank the City Council for its
support of the CdM BID over the past 20 years.
In addition to the roughly $100,000 the CdM BID receives annually from member
assessments, the City has provided the CdM 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 district's 2018-
2019 FY goals and priorities, the Board would like to request continued City
support funding at the same annual contribution of $40,000 annually for a three-
year period beginning FY 2018-2019.
On Behalf of the CdM BID, we greatly appreciate the City Council's funding
support to the CdM BID, and we look forward to continuing to enhance and
revitalize the Corona del Mar Business District.
Thank you in advance.
53eW& stwbt"
Bernie Svalstad, Chairman
Corona del Mar Business Improvement District
RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID
www.CdMVillage.com Facebook/CdM BID
6-15
RESOLUTION NO. 2018 - 28
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, 2018
TO JUNE 30, 2019, 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 of the City of
Newport Beach ("City") for each fiscal year;
WHEREAS, the advisory board, known as the CdM BID Board of Directors, has
prepared an annual report for the 2017-2018 fiscal year which is on file in the City Clerk's
Office ("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 CdM 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 CdM BID for the fiscal year July 1, 2018 to June 30, 2019, 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
MON
Resolution No. 2018 -
Page 2 of 3
established pursuant to Newport Beach Municipal Code ("NBMC") Chapter
5.08.
Section 3: The penalty for delinquent payments shall be equal to that
established for delinquent business license fees pursuant to NBMC 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 of Newport
Beach, 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 City Clerk's Office 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 boundary map attached hereto, 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 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 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
6-17
Resolution No. 2018 -
Page 3 of 3
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.
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 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
APPROVED AS TO FORM:
CITTTO FY'S OFFICE
S -r
Aa on C. arp
City Attorney
Attachment: Boundary Map
Marshall "Duffy" Duffield
Mayor
MOR
Advisory Board
Bernie Svalstad
Chairperson
Scott Laidlaw
Vice Chair
Keith Dawson
Treasurer
Ed Hanley
Secretary
Shawn Lim
Director
Jasmine Mortazavi
Director
Hamid Kianapur
Director
Scott LeFleur
Director
Ernie Caponera
Director
CDM BID
Financial Reporting
Community Business
Solutions
(949) 200-9851
Marketing &
Administration
Corona del Mar
Chamber of
Commerce
(949) 673-4050
ATTACHMENT B
Corona del Mar
BUSINESS IMPROVEMENT DISTRICT /City of Newport Beach
June 1, 2018
Dear Newport Beach City Council,
RE: Reauest for Renewal and Fundine Support for the CDM BID for FY2018/19
The CdM Advisory Board of Directors has had the opportunity to meet, along with
City Staff to discuss the City Council's topic of a possible transition of the BID's
structure to that pursuant to the Property and Business Improvement District Law
of 1994.
The CdM BID Board reviewed the Business Improvement Area Law of 1989
(1989 Law) versus the Property and Business Improvement District Law of 1994
(1994 Law) BID models, and the pros and cons to each structure.
By unanimous vote, the CdM BID Board would like to request renewal of the
CdM BID under the current 1989 structure for FY 2018/2019. In addition, we
would like to request the continued city support of $40,000.
We greatly appreciate the City Council's support and funding of the CdM BID, and
we look forward to continuing to enhance and revitalize the Corona del Mar
Business District.
Thank you in advance.
J3etci k Suct6t"
Bernie Svalstad, Chairman
Corona del Mar Business Improvement District
RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID
www.CdMVillage.com Facebook/CdM BID
6-20