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Home My WebLink About21 - Proposed Modification of theNBTBID Management District Plan - Public Meeting NoticeJune 26, 2018 PUBLIC MEETING NOTICE Item No. 21 RESOLUTION NO. 2018-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO MODIFY THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT'S MANAGEMENT DISTRICT PLAN AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS, on April 28, 2009, the City Council of the City of Newport Beach ("City") adopted Resolution No. 2009-21 and established the Newport Beach Tourism Business Improvement District ("NBTBID") pursuant to the Property and Business Improvement Law of 1994, Streets and Highways Code Sections 36600 et seq. ("1994 Law"), and a Management District Plan on file with the City Clerk; WHEREAS, on April 24, 2012, the City Council adopted Resolution No. 2012-28, which amended the NBTBID and the Management District Plan to include the Newport Dunes Waterfront Resort & Marina; WHEREAS, on January 28, 2014, the City Council adopted Resolution No. 2014- 7 renewing the NBTBID for a ten-year term; WHEREAS, the NBTBID currently includes eight hotels and resorts and is managed by the NBTBID's owners' association, Visit Newport Beach, Inc. ("VNB"); WHEREAS, on May 25, 2018, VNB submitted a written request approved by a majority of the existing TBID members to the City requesting an amendment to the Management District Plan, which among other things includes the Lido House within the NBTBID; and WHEREAS, the Management District Plan, which sets forth the NBTBID boundary, service plan, budget, and means of governance may be amended by the City Council upon the request of the VNB and following a public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council finds that the NBTBID owners' association has requested an amendment of the Management District Plan. Section 2: The City Council declares its intention to amend the NBTBID's Management District Plan and levy and collect assessments on additional lodging businesses within the NBTBID boundaries pursuant to the 1994 Law as more fully set forth in the Amended Management District Plan, attached hereto as Exhibit "I" and incorporated herein by reference. Section 3: The boundaries of the NBTBID are the boundaries of the City of Newport Beach, as depicted on the map attached to the Amended Management District Plan. Section 4: The name of the district shall remain the Newport Beach Tourism Business Improvement District. Resolution 2018-36 Page 2 of 3 Section 5: The NBTBID shall assess nine (9) hotels and resorts within the city limits of Newport Beach three percent (3%) of gross short term (stays less than thirty (30) days) room rental revenue. The NBTBID shall include the Balboa Bay Resort, the Fashion Island Hotel, the Hyatt Regency John Wayne Airport Newport Beach, the Hyatt Regency Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, the Renaissance Newport Beach Hotel, and the Lido House. Gross room revenue is defined as total room revenue less any local, state, or federal sales taxes or transient occupancy taxes. Lodging business stays of more than thirty (30) consecutive days shall not be assessed. Based on benefits received, stays by airline personnel and government employees on government business shall not be assessed. Similarly, time shares shall not be assessed. Section 6: The assessments levied for the NBTBID shall be applied to provide specific benefits directly to the assessed businesses by increasing room night sales. Marketing, public art, sales promotions, advertising, and communications will increase overnight tourism and market assessed businesses as tourist, meeting and event destinations, thereby increasing room night sales. Funds remaining at the end of any year may be used in subsequent years in which NBTBID assessments are levied as long as they are used consistent with the requirements of this resolution and the Amended Management District Plan. Section 7: Bonds will not be issued. Section 8: The time and place for the public meeting to consider the NBTBID Amended Management District Plan is June 26, 2018 at 7:00 p.m. or as soon thereafter as the matter may be heard, at the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. Pursuant to Section 36623 of the 1994 Law, the City Clerk is directed to provide notice of this Resolution of Intention to the lodging businesses subject to the assessment and to publish this Resolution of Intention in a newspaper of general circulation at least ten (10) days prior to the public meeting. Section 9: The time and place for the public hearing to consider the NBTBID Amended Management District Plan is July 10, 2018 at 7:00 p.m. or as soon thereafter as the matter may be heard, at the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California. Section 10: At the public hearing, the testimony of all interested persons for or against the Amended Management District Plan may be received. If, at the conclusion of the public hearing, there are recorded protests by the owners of the lodging businesses within the proposed NBTBID that will pay fifty percent (50%) or more of the estimated total assessment of the entire NBTBID, the Management District Plan shall not be amended. Section 11: The Amended Management District Plan is on file with the City Clerk, 100 Civic Center Drive, Newport Beach, California 92660, and may be reviewed upon request. Resolution 2018-36 Page 3 of 3 Section 12: To receive additional information about the proposed assessment or to submit a written protest, interested persons may contact the City Clerk, 100 Civic Center Drive, Newport Beach, California 92660, (949) 644-3005. Section 13: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 14: 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 15: 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 16: 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 12th day of June, 2018. /s/ Will O'Neill, Mayor Pro Tem ATTEST: /s/ Leilani I. Brown, City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE /s/ Aaron C. Harp City Attorney Attachment: Amended Management District Plan June 14, 2018 CITY OF NEWPORT BEACH 100 Civic Center Drive Newport Beach, California 92660 949 644-3005 1 949 644-3039 FAX newportbeachca.gov/cityclerk Dear Newport Beach Tourism Business Improvement District (NBTBID) Member: On Tuesday, June 12, the Newport Beach City Council adopted Resolution No. 2018-36, declaring its intention to modify the NBTBID's Management District Plan to include the Lido House in the business improvement district. The proposed amendments to the plan also include updates to the budget and to the names of certain member lodging businesses, and the removal of some potentially confusing language related to how new members can be added in the future. State law sets forth the process and procedures for modifying the Management District Plan. The first step was the adoption of the Resolution of Intention and there are two more steps to accomplish. The second step is to hold a public meeting to consider the modified Management District Plan. It will be included as part of the City Council's next regular meeting on June 26 at 7 p.m. in the Newport Beach Council Chambers, 100 Civic Center Drive, Newport Beach, CA 92660. The final step will be for the City Council to hold a public hearing. The public hearing will be a part of the City Council's July 10 regular meeting which will begin at 7 p.m. at the aforementioned location. Enclosed you will find a copy of Resolution 2018-36 which includes the Notice of Public Meeting and Public Hearing, with the proposed Modified Management District Plan included as Exhibit 1. You are welcome to attend the meeting and/or the hearing to provide your comments. Written comments may also be submitted in advance of the meeting and/or hearing to the City Clerk's Office, 100 Civic Center Drive, Bay E, Newport Beach, CA, 92660 or ci . clerk(c�r�,newportbeachca. og_v. Should you have any questions about the process or proposed amendments, please contact Tara Finnigan, deputy city manager, at 949-644-3035 or tfinnigan@newportbeachca.gov. Sincerely, 4mr j— M*%1— Leilani I. Brown, MMC City Clerk Attachments: 2018-36 Resolution Amended Management District Plan PUBLIC MEETING NOTICE RESOLUTION NO. 2018-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO MODIFY THE NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT'S MANAGEMENT DISTRICT PLAN AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS, on April 28, 2009, the City Council of the City of Newport Beach ("City") adopted Resolution No. 2009-21 and established the Newport Beach Tourism Business Improvement District ("NBTBID") pursuant to the Property and Business Improvement Law of 1994, Streets and Highways Code Sections 36600 et seq. ("1994 Law"), and a Management District Plan on file with the City Clerk; WHEREAS, on April 24, 2012, the City Council adopted Resolution No. 2012-28, which amended the NBTBID and the Management District Plan to include the Newport Dunes Waterfront Resort & Marina; WHEREAS, on January 28, 2014, the City Council adopted Resolution No. 2014- 7 renewing the NBTBID for a ten-year term; WHEREAS, the NBTBID currently includes eight hotels and resorts and is managed by the NBTBID's owners' association, Visit Newport Beach, Inc. ("VNB"); WHEREAS, on May 25, 2018, VNB submitted a written request approved by a majority of the existing TBID members to the City requesting an amendment to the Management District Plan, which among other things includes the Lido House within the NBTBID; and WHEREAS, the Management District Plan, which sets forth the NBTBID boundary, service plan, budget, and means of governance may be amended by the City Council upon the request of the VNB and following a public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council finds that the NBTBID owners' association has requested an amendment of the Management District Plan. Section 2: The City Council declares its intention to amend the NBTBID's Management District Plan and levy and collect assessments on additional lodging businesses within the NBTBID boundaries pursuant to the 1994 Law as more fully set forth in the Amended Management District Plan, attached hereto as Exhibit "I" and incorporated herein by reference. Section 3: The boundaries of the NBTBID are the boundaries of the City of Newport Beach, as depicted on the map attached to the Amended Management District Plan. Section 4: The name of the district shall remain the Newport Beach Tourism Business Improvement District. Resolution 2018-36 Page 3 of 3 Section 12: To receive additional information about the proposed assessment or to submit a written protest, interested persons may contact the City Clerk, 100 Civic Center Drive, Newport Beach, California 92660, (949) 644-3005. Section 13: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 14: 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 15: 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 16: 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 12th day of June, 2018. /s/ Will O'Neill, Mayor Pro Tem ATTEST: /s/ Leilani I. Brown, City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE /s/ Aaron C. Harp City Attorney Attachment: Amended Management District Plan Exhibit 1 4 it '4.. i � .� as � a�_�-► . - YZI 4r NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT I. OVERVIEW Administered by Visit Newport Beach, Inc. (VNB), the Newport Beach Tourism Business Improvement District (NBTBID) is a business improvement district created to provide specific benefits to its member businesses, by funding marketing and sales promotion efforts for the assessed businesses. The NBTBID was formed by the City of Newport Beach (City) in 2009, pursuant to the Property and Business Improvement District Law of 1994, Streets and Highways Code Sections 36600 et seq. Upon the request of the NBTBID Owner's Association, the City Council modified the NBTBID in 2012 to add another lodging business. In January 2014, in response to a request by the Owners' Association, the City Council renewed the NBTBID for a 10 -year term and increased the assessment from two (2.0%) percent to three (3.0%) percent of gross short-term revenue. Location: The City of Newport Beach. The NBTBID includes nine (9) lodging businesses located within the boundaries of the City of Newport Beach. The NBTBID shall include the Balboa Bay Resort, the Fashion Island Hotel, the Hyatt Regency John Wayne Airport Newport Beach, the Hyatt Regency Newport Beach, the Newport Beach Marriott Bayview, the Newport Beach Marriott Hotel & Spa, the Newport Dunes Waterfront Resort & Marina, the Renaissance Newport Beach Hotel, the Lido House, and any other hotel and resort business that may join the NBTBID in the future. Services: The NBTBID is designed to provide specific benefits directly to assessed businesses by increasing room night sales. The improvements and activities include those improvements and activities provided in Streets and Highways Code sections 36610 and 36613, and include, but are not limited to, sales marketing and direct sales programs to increase overnight tourism and market the assessed businesses as tourist, meeting and event destinations, thereby increasing room night sales. These same improvements and activities are proposed for each year of the NBTBID's ten (10) year term. Budget: The total NBTBID annual budget for the initial year, and subsequent years, is anticipated to be approximately $4,100,000. This budget is expected to fluctuate as room sales do, but is not expected to significantly change over the NBTBID's ten (10) year term. Cost: The annual assessment rate is three percent (3.0%) of gross short-term (i.e., stays of thirty (30) calendar days or less) room rental revenue. Because programs will not be designed to attract certain stays, certain types of stays will not be assessed, as described in Section V(C). Duration: The proposed NBTBID will have a ten (10) year term. The NBTBID assessment will be implemented beginning February 1, 2014, and will be in effect for ten (10) years through January 31, 2024. After ten (10) years, the petition and City Council hearing process must be repeated for the NBTBID to be renewed. Also, once per year beginning on the anniversary of the formation of the NBTBID, there is a thirty (30) calendar day period in which assessed businesses paying more than fifty percent (50%) Overview I Newport Beach Tourism Business Improvement District 11. IMPETUS There are several reasons why the NBTBID should be renewed; the most compelling reasons are as follows: 1. The Need to Increase Occupancy, The renewal of the NBTBID is a proactive effort to provide supplemental funding for tourism promotion beyond that provided by the City. The funding will ensure that adequate financing exists for the investment required to increase occupancy in the lodging industry and be competitive in the conference segment of the tourism market. The investment will cover an expanded marketing and promotional budget needed to reach this market segment. 2. An Opportunity for Increasing City, Tax Revenues As occupancy rates increase, so too will the City's TOT revenue. With stable public/private funding for tourism marketing efforts, annual occupancy rates should increase significantly as new marketing and sales promotion programs are implemented. Greater occupancy will also produce an increase in sales tax revenues from tourism -related spending. The renewal of the NBTBID, in partnership with VNB, creates a stable funding source tied directly to tourism promotion. 3. Stable Funding for Tourism Promotion The NBTBID will provide a stable source of funding for consistent tourism promotion efforts. The NBTBID will provide funding for tourism promotion free of the political and economic circumstances that can reduce or eliminate government funding for tourism promotion. Impetus I Newport Beach Tourism Business Improvement District IV. BOUNDARY The NBTBID will include nine (9) lodging businesses, available for public occupancy within the boundaries of the City of Newport Beach, and other hotels and resorts that may join NBTBID in the future. The boundary, as shown in the map below, currently includes nine (9) lodging businesses. A complete listing of lodging businesses within the NBTBID can be found in Appendix 2. tai I I 4, A 33 .� Hyatt Regency John Wayne p T Airport Newport Beach 1 ' Newport Beach i�j• , Renaissance Newport City Limits '` , 73 seam Hotel -'� ..:..' Newport Beach Marriott Bayvi Newport Beach TBID a < <a 0 55 F 5� v 'Y t � fp Fashion Island Hotel Udo Houma Hyatt Regency Newport Beach • Balboa Bay Resort • Newport Beach Marriott Hotel 8 Spa 9� Newport -Dunes Waterfront 017 yf, Resort R Marina, �9 Fcf� i TAS -`� Boundary I Newport Beach Tourism Business Improvement District • Lead generation activities designed to attract group events to assessed businesses. The sales solicitation portion of the budget will be utilized to support direct sales efforts, including personnel and sales support teams that conduct outreach to clients, provide site inspections and work with assessed hotels to close select group business. Sales — Administration The sales administration portion of the budget will be utilized for administrative costs related to providing the sales programs. This may include office costs, and other general administrative costs, such as insurance, legal, and accounting fees. Legal fees may include defense of the NBTBID. City Administration Fee The City of Newport Beach shall be paid a fee equal to one quarter of one percent (0.25%) of the amount of assessment collected to cover its costs of collection and administration. Contingency A prudent portion of the budget will be held in a contingency reserve. These funds may be used to cover unanticipated program or administrative costs. If, at expiration of the NBTBID, there are contingency funds remaining and hotels wish to renew the district, the contingency funds could be used for the renewal effort. B. Determination of Specific Benefit State law requires that assessment funds be expended on a specific benefit conferred directly to the assessed businesses that is not provided to those not charged, and which does not exceed the reasonable cost to the City conferring the benefit. The services in this Management District Plan are designed to provide targeted benefits directly to assessed businesses. These services are tailored not to serve the general public, but rather to serve the specific assessed businesses within the NBTBID (e.g., the proposed activities are specifically targeted to increase room night sales for assessed businesses within the boundaries of the NBTBID, and are narrowly tailored). NBTBID funds will be used exclusively to provide the specific benefit of increased room night sales directly to the businesses. Non -assessed businesses will not be featured in NBTBID programs and will not receive sales leads from them. The activities paid for from assessment revenues are business services constituting and providing specific benefits to the assessed businesses. To the extent any non-paying business benefits from TBID programs, that portion of the program will be paid for with non -assessment funds. Further, the assessment may be utilized to provide specific government services directly to the assessed businesses that are not provided to those not charged, and which do not exceed the reasonable costs to the City providing the services. Marketing like that to be provided by the NBTBID has been and is provided by the City, through its contract with VNB. The amount of the assessment is no more than necessary to cover the reasonable costs of the proposed activities, and the manner in which the costs are allocated to a business owner bear a fair share and bears a reasonable relationship to the assessed businesses' benefits received from the proposed activities. NBTBID services will be implemented carefully to ensure they do not exceed the reasonable cost of such services. Funds will be managed by the Owners' Association, and reports submitted on an annual basis to the City. Only assessed businesses will be featured in marketing materials, receive sales leads generated from NBTBID-funded activities, be featured in advertising campaigns, and benefit from other NBTBID-funded services. Non -assessed businesses will not receive these, nor any other, NBTBID-funded services and benefits. Budget and Services I Newport Beach Tourism Business Improvement District on a monthly basis (including any delinquencies, penalties and interest) from each assessed business located in the boundaries of the NBTBID. The City, or its designee, shall take all reasonable efforts to collect the assessments from each assessed business. The City shall forward the assessments collected to the Owners' Association. E. Penalties and Interest 1. Any assessed business which fails to remit any assessment within the time required shall pay a penalty of ten (10) percent of the amount of the assessment in addition to the amount of the assessment (initial penalty). 2. Any business that fails to remit the assessment and initial penalty on or before a period of thirty (30) calendar days following the date on which the assessment first became delinquent shall pay a second delinquency penalty of ten (10) percent on both the amount of the assessment and the initial penalty (second penalty). 3. In addition to the penalties imposed, any assessed business that fails to remit any assessment shall pay interest on the amount of assessment that is due and owing at the rate of one and one-half of one percent (1-'/a%) per month for each month or portion of a month that the assessment remains unpaid exclusive of penalties. For purposes of collection, every penalty imposed and such interest as accrues shall become a part of the assessment required to be paid. 4. In addition to the penalties and interest provided in this section, the assessed business shall reimburse the City or Owners' Association for costs in performance of an audit if, as a result of the audit, it is determined there was any intentional misrepresentation by the assessed business with respect to the amount of assessment due or there is a five percent (5%) or greater discrepancy between the amount of annual assessment due and the amount paid by the business. Such reimbursement shall be paid by business within thirty (30) calendar days of the assessed business being notified in writing of the amount of audit costs. F. Annual Budget The total ten (10) year improvement and service plan budget is projected at approximately $4,100,000 annually, or $41,000,000 through the ten (10) year term. This amount may fluctuate as sales and revenue increase at assessed businesses. Budget and Services I Newport Beach Tourism Business Improvement District APPENDIX 1 - LAW *** THIS DOCUMENT IS CURRENT THROUGH THE 2018 SUPPLEMENT *** (ALL 2017 LEGISLATION) STREETS AND HIGHWAYS CODE DIVISION 18. PARKING PART 7. PROPERTY AND BUSINESS IMPROVEMENT DISTRICT LAW OF 1994 CHAPTER 1. General Provisions ARTICLE 1. Declarations 36600. Citation of part This part shall be known and may be cited as the "Property and Business Improvement District Law of 1994." 36601. Legislative findings and declarations; Legislative guidance The Legislature finds and declares all of the following: (a) Businesses located and operating within business districts in some of this state's communities are economically disadvantaged, are underutilized, and are unable to attract customers due to inadequate facilities, services, and activities in the business districts. (b) It is in the public interest to promote the economic revitalization and physical maintenance of business districts in order to create jobs, attract new businesses, and prevent the erosion of the business districts. (c) It is of particular local benefit to allow business districts to fund business related improvements, maintenance, and activities through the levy of assessments upon the businesses or real property that receive benefits from those improvements. (d) Assessments levied for the purpose of conferring special benefit upon the real property or a specific benefit upon the businesses in a business district are not taxes for the general benefit of a city, even if property, businesses, or persons not assessed receive incidental or collateral effects that benefit them. (e) Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12 -percent reduction in the incidence of robbery and an 8 -percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business attraction. (4) Business retention. (5) Economic growth. (6) New investments. (f) With the dissolution of redevelopment agencies throughout the state, property and business improvement districts have become even more important tools with which communities can combat blight, promote economic opportunities, and create a clean and safe environment. (g) Since the enactment of this act, the people of California have adopted Proposition 218, which added Article XIII D to the Constitution in order to place certain requirements and restrictions on the formation of, and activities, expenditures, and assessments by property -based districts. Article XIII D of the Constitution provides that property -based districts may only levy assessments for special benefits. (h) The act amending this section is intended to provide the Legislature's guidance with regard to this act, its interaction with the provisions of Article XIII D of the Constitution, and the determination of special benefits in property -based districts. (1) The lack of legislative guidance has resulted in uncertainty and inconsistent application of this act, which discourages the use of assessments to fund needed improvements, maintenance, and activities in property -based districts, contributing to blight and other underutilization of property. (2) Activities undertaken for the purpose of conferring special benefits upon property to be assessed inherently produce incidental or collateral effects that benefit property or persons not Appendix 1 — Law I Newport Beach Tourism Business Improvement District 36607. "Business" "Business" means all types of businesses and includes financial institutions and professions. 36608. "City" "City" means a city, county, city and county, or an agency or entity created pursuant to Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the public member agencies of which includes only cities, counties, or a city and county, or the State of California. 36609. "City council" "City council" means the city council of a city or the board of supervisors of a county, or the agency, commission, or board created pursuant to a joint powers agreement and which is a city within the meaning of this part. 36609.4. "Clerk" "Clerk" means the clerk of the legislative body. 36609.5. "General benefit" "General benefit" means, for purposes of a property -based district, any benefit that is not a "special benefit" as defined in Section 36615.5. 36610. "Improvement" "Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years or more including, but not limited to, the following: (a) Parking facilities. (b) Benches, booths, kiosks, display cases, pedestrian shelters and signs. (c) Trash receptacles and public restrooms. (d) Lighting and heating facilities. (e) Decorations. (f) Parks. (g) Fountains. (h) Planting areas. (i) Closing, opening, widening, or narrowing of existing streets. 0) Facilities or equipment, or both, to enhance security of persons and property within the district. (k) Ramps, sidewalks, plazas, and pedestrian malls. (1) Rehabilitation or removal of existing structures. 36611. "Management district plan"; "Plan" "Management district plan" or "plan" means a proposal as defined in Section 36622. 36612. "Owners' association" "Owners' association" means a private nonprofit entity that is under contract with a city to administer or implement improvements, maintenance, and activities specified in the management district plan. An owners' association may be an existing nonprofit entity or a newly formed nonprofit entity. An owners' association is a private entity and may not be considered a public entity for any purpose, nor may its board members or staff be considered to be public officials for any purpose. Notwithstanding this section, an owners' association shall comply with the Ralph M. Brown Act (Chapter 9 (commencing with Section 54950) of Part 1 of Division 2 of Title 5 of the Government Code), at all times when matters within the subject matter of the district are heard, discussed, or deliberated, and with the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1 of the Government Code), for all records relating to activities of the district. Appendix 1 — Law I Newport Beach Tourism Business Improvement District A county may not form a district within the territorial jurisdiction of a city without the consent of the city council of that city. A city may not form a district within the unincorporated territory of a county without the consent of the board of supervisors of that county. A city may not form a district within the territorial jurisdiction of another city without the consent of the city council of the other city. 36621. Initiation of proceedings; Petition of property or business owners in proposed district (a) Upon the submission of a written petition, signed by the property or business owners in the proposed district who will pay more than 50 percent of the assessments proposed to be levied, the city council may initiate proceedings to form a district by the adoption of a resolution expressing its intention to form a district. The amount of assessment attributable to property or a business owned by the same property or business owner that is in excess of 40 percent of the amount of all assessments proposed to be levied, shall not be included in determining whether the petition is signed by property or business owners who will pay more than 50 percent of the total amount of assessments proposed to be levied. (b) The petition of property or business owners required under subdivision (a) shall include a summary of the management district plan. That summary shall include all of the following: (1) A map showing the boundaries of the district. (2) Information specifying where the complete management district plan can be obtained. (3) Information specifying that the complete management district plan shall be furnished upon request. (c) The resolution of intention described in subdivision (a) shall contain all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property or businesses within the district, a statement as to whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements do not need to be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities, and the location and extent of the proposed district. (2) A time and place for a public hearing on the establishment of the property and business improvement district and the levy of assessments, which shall be consistent with the requirements of Section 36623. 36622. Contents of management district plan The management district plan shall include, but is not limited to, all of the following: (a) If the assessment will be levied on property, a map of the district in sufficient detail to locate each parcel of property and, if businesses are to be assessed, each business within the district. If the assessment will be levied on businesses, a map that identifies the district boundaries in sufficient detail to allow a business owner to reasonably determine whether a business is located within the district boundaries. If the assessment will be levied on property and businesses, a map of the district in sufficient detail to locate each parcel of property and to allow a business owner to reasonably determine whether a business is located within the district boundaries. (b) The name of the proposed district. (c) A description of the boundaries of the district, including the boundaries of benefit zones, proposed for establishment or extension in a manner sufficient to identify the affected property and businesses included, which may be made by reference to any plan or map that is on file with the clerk. The boundaries of a proposed property assessment district shall not overlap with the boundaries of another existing property assessment district created pursuant to this part. This part does not prohibit the boundaries of a district created pursuant to this part to overlap with other assessment districts established pursuant to other provisions of law, including, but not limited to, the Parking and Business Improvement Area Law of 1989 (Part 6 (commencing with Section 36500)). This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with another business assessment district created pursuant to this part. This part does not prohibit the boundaries of a business assessment district created pursuant to this part to overlap with a property assessment district created pursuant to this part. (d) The improvements, maintenance, and activities proposed for each year of operation of the district and the maximum cost thereof. If the improvements, maintenance, and activities proposed for each year of operation are the same, a description of the first year's proposed improvements, maintenance, and activities Appendix 1 — Law I Newport Beach Tourism Business Improvement District protest is interested sufficient to identify the business and, if a person subscribing is not shown on the official records of the city as the owner of the business, the protest shall contain or be accompanied by written evidence that the person subscribing is the owner of the business or the authorized representative. A written protest that does not comply with this section shall not be counted in determining a majority protest. If written protests are received from the owners or authorized representatives of businesses in the proposed district that will pay 50 percent or more of the assessments proposed to be levied and protests are not withdrawn so as to reduce the protests to less than 50 percent, no further proceedings to levy the proposed assessment against such businesses, as contained in the resolution of intention, shall be taken for a period of one year from the date of the finding of a majority protest by the city council. (c) If a city council proposes to conduct a single proceeding to levy both a new or increased property assessment and a new or increased business assessment, the notice and protest and hearing procedure for the property assessment shall comply with subdivision (a), and the notice and protest and hearing procedure for the business assessment shall comply with subdivision (b). If a majority protest is received from either the property or business owners, that respective portion of the assessment shall not be levied. The remaining portion of the assessment may be levied unless the improvement or other special benefit was proposed to be funded by assessing both property and business owners. 36624. Changes to proposed assessments At the conclusion of the public hearing to establish the district, the city council may adopt, revise, change, reduce, or modify the proposed assessment or the type or types of improvements, maintenance, and activities to be funded with the revenues from the assessments. Proposed assessments may only be revised by reducing any or all of them. At the public hearing, the city council may only make changes in, to, or from the boundaries of the proposed property and business improvement district that will exclude territory that will not benefit from the proposed improvements, maintenance, and activities. Any modifications, revisions, reductions, or changes to the proposed assessment district shall be reflected in the notice and map recorded pursuant to Section 36627. 36625. Resolution of formation (a) If the city council, following the public hearing, decides to establish a proposed property and business improvement district, the city council shall adopt a resolution of formation that shall include, but is not limited to, all of the following: (1) A brief description of the proposed improvements, maintenance, and activities, the amount of the proposed assessment, a statement as to whether the assessment will be levied on property, businesses, or both within the district, a statement on whether bonds will be issued, and a description of the exterior boundaries of the proposed district, which may be made by reference to any plan or map that is on file with the clerk. The descriptions and statements need not be detailed and shall be sufficient if they enable an owner to generally identify the nature and extent of the improvements, maintenance, and activities and the location and extent of the proposed district. (2) The number, date of adoption, and title of the resolution of intention. (3) The time and place where the public hearing was held concerning the establishment of the district. (4) A determination regarding any protests received. The city shall not establish the district or levy assessments if a majority protest was received. (5) A statement that the properties, businesses, or properties and businesses in the district established by the resolution shall be subject to any amendments to this part. . (6) A statement that the improvements, maintenance, and activities to be conferred on businesses and properties in the district will be funded by the levy of the assessments. The revenue from the levy of assessments within a district shall not be used to provide improvements, maintenance, or activities outside the district or for any purpose other than the purposes specified in the resolution of intention, as modified by the city council at the hearing concerning establishment of the district. Notwithstanding the foregoing, improvements and activities that must be provided outside the district boundaries to create a special or specific benefit to the assessed parcels or businesses may be provided, but shall be limited to marketing or signage pointing to the district. (7) A finding that the property or businesses within the area of the property and business improvement district will be benefited by the improvements, maintenance, and activities funded Appendix 1 — Law I Newport Beach Tourism Business Improvement District penalties for delinquent payment. All delinquent payments for assessments levied pursuant to this part may be charged interest and penalties. 36632. Assessments to be based on estimated benefit; Classification of real property and businesses; Exclusion of residential and agricultural property (a) The assessments levied on real property pursuant to this part shall be levied on the basis of the estimated benefit to the real property within the property and business improvement district. The city council may classify properties for purposes of determining the benefit to property of the improvements and activities provided pursuant to this part. (b) Assessments levied on businesses pursuant to this part shall be levied on the basis of the estimated benefit to the businesses within the property and business improvement district. The city council may classify businesses for purposes of determining the benefit to the businesses of the improvements and activities provided pursuant to this part. (c) Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments, and shall not be subject to any assessment pursuant to this part. 36633. Time for contesting validity of assessment The validity of an assessment levied under this part shall not be contested in any action or proceeding unless the action or proceeding is commenced within 30 days after the resolution levying the assessment is adopted pursuant to Section 36626. Any appeal from a final judgment in an action or proceeding shall be perfected within 30 days after the entry of judgment. 36634. Service contracts authorized to establish levels of city services The city council may execute baseline service contracts that would establish levels of city services that would continue after a property and business improvement district has been formed. 36635. Request to modify management district plan The owners' association may, at any time, request that the city council modify the management district plan. Any modification of the management district plan shall be made pursuant to this chapter. 36636. Modification of plan by resolution after public hearing; Adoption of resolution of intention (a) Upon the written request of the owners' association, the city council may modify the management district plan after conducting one public hearing on the proposed modifications. The city council may modify the improvements and activities to be funded with the revenue derived from the levy of the assessments by adopting a resolution determining to make the modifications after holding a public hearing on the proposed modifications. If the modification includes the levy of a new or increased assessment, the city council shall comply with Section 36623. Notice of all other public hearings pursuant to this section shall comply with both of the following: (1) The resolution of intention shall be published in a newspaper of general circulation in the city once at least seven days before the public hearing. (2) A complete copy of the resolution of intention shall be mailed by first class mail, at least 10 days before the public hearing, to each business owner or property owner affected by the proposed modification. (b) The city council shall adopt a resolution of intention which states the proposed modification prior to the public hearing required by this section. The public hearing shall be held not more than 90 days after the adoption of the resolution of intention. 36637. Reflection of modification in notices recorded and maps Any subsequent modification of the resolution shall be reflected in subsequent notices and maps recorded pursuant to Division 4.5 (commencing with Section 3100), in a manner consistent with the provisions of Section 36627. Appendix 1 — Law I Newport Beach Tourism Business Improvement District 36651. Designation of owners' association to provide improvements, maintenance, and activities The management district plan may, but is not required to, state that an owners' association will provide the improvements, maintenance, and activities described in the management district plan. If the management district plan designates an owners' association, the city shall contract with the designated nonprofit corporation to provide services. CHAPTER 5. Renewal 36660. Renewal of district; Transfer or refund of remaining revenues; District term limit (a) Any district previously established whose term has expired, or will expire, may be renewed by following the procedures for establishment as provided in this chapter. (b) Upon renewal, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be transferred to the renewed district. If the renewed district includes additional parcels or businesses not included in the prior district, the remaining revenues shall be spent to benefit only the parcels or businesses in the prior district. If the renewed district does not include parcels or businesses included in the prior district, the remaining revenues attributable to these parcels shall be refunded to the owners of these parcels or businesses. (c) Upon renewal, a district shall have a term not to exceed 10 years, or, if the district is authorized to issue bonds, until the maximum maturity of those bonds. There is no requirement that the boundaries, assessments, improvements, or activities of a renewed district be the same as the original or prior district. CHAPTER 6. Disestablishment 36670. Circumstances permitting disestablishment of district; Procedure (a) Any district established or extended pursuant to the provisions of this part, where there is no indebtedness, outstanding and unpaid, incurred to accomplish any of the purposes of the district, may be disestablished by resolution by the city council in either of the following circumstances: (1) If the city council finds there has been misappropriation of funds, malfeasance, or a violation of law in connection with the management of the district, it shall notice a hearing on disestablishment. (2) During the operation of the district, there shall be a 30 -day period each year in which assessees may request disestablishment of the district. The first such period shall begin one year after the date of establishment of the district and shall continue for 30 days. The next such 30 -day period shall begin two years after the date of the establishment of the district. Each successive year of operation of the district shall have such a 30 -day period. Upon the written petition of the owners or authorized representatives of real property or the owners or authorized representatives of businesses in the district who pay 50 percent or more of the assessments levied, the city council shall pass a resolution of intention to disestablish the district. The city council shall notice a .hearing on disestablishment. (b) The city council shall adopt a resolution of intention to disestablish the district prior to the public hearing required by this section. The resolution shall state the reason for the disestablishment, shall state the time and place of the public hearing, and shall contain a proposal to dispose of any assets acquired with the revenues of the assessments levied within the property and business improvement district. The notice of the hearing on disestablishment required by this section shall be given by mail to the property owner of each parcel or to the owner of each business subject to assessment in the district, as appropriate. The city shall conduct the public hearing not less than 30 days after mailing the notice to the property or business owners. The public hearing shall be held not more than 60 days after the adoption of the resolution of intention. 36671. Refund of remaining revenues upon disestablishment or expiration without renewal of district; Calculation of refund; Use of outstanding revenue collected after disestablishment of district (a) Upon the disestablishment or expiration without renewal of a district, any remaining revenues, after all outstanding debts are paid, derived from the levy of assessments, or derived from the sale of assets acquired Appendix 1 — Law I Newport Beach Tourism Business Improvement District APPENDIX 2 - ASSESSED BUSINESSES Business Name Street City & State zip Balboa Bay Resort 1221 West Coast Highway Newport Beach CA 92663 Fashion Island Hotel 690 Newport Center Drive Newport Beach CA 92660 Hyatt Regency John Wayne 4545 MacArthur Boulevard Newport Beach CA 92660 Airport Newport Beach Hyatt Regency Newport Beach 1107 Jamboree Road Newport Beach CA 92660 Lido House 3300 Newport Boulevard Newport Beach CA 92663 Newport Beach Marriott 500 Bayview Circle Newport Beach CA 92660 Bayview Newport Beach Marriott Hotel 900 Newport Center Drive Newport Beach CA 92660 & Spa Newport Dunes Waterfront 1131 Back Bay Drive Newport Beach CA 92660 Resort & Marina Renaissance Newport Beach Hotel 4500 MacArthur Boulevard Newport Beach CA 92660 Appendix 2 — Assessed Businesses I Newport Beach Tourism Business Improvement District 00 W O bA u y Q) y y y u v y y 0 41w 00 0 0 0 0 c o 0 b z z z z z z z z z z v r4 73 > O y ti > a3 ai v > •V4 2 v 0 x Q by y � v y vrl 4 x x y Q x cd U U�4 o X cd >, c o U N G1 v) Ncn Vl V M C t -ix "" 00 cl Gq t W U C v0 v R rr� ^ v Cd V u u rn y y y v 1 n y C 0) O v y 3 x O O cd a4 O O y S] z cd v .moi 7u, ' y E bL bb.0 to to to tk b.0 N U ro cd cd cd cd cd 4., s cd cd 7cda v $-4 v cl�$-4 $-4 v 7�i v i4 v ., v s� cd y cd y cd y ,� O y b cd � � O s-� y >, "O s~ m 71 y_ v cli C v 0 34 cd W O V O is Cos An-geles Times ME D I A G ROU P Sold To: City of Newport Beach - C000072031 100 Civic Center Dr Newport Beach,CA 92660 Bill To: City of Newport Beach - C000072031 100 Civic Center Dr Newport Beach,CA 92660 PUBLIC MEETING NOTICE RESOLUTION NO. 2018-36 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO MODIFY THE MEW OAT BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT'S MANAGEMENT DISTRICT PLAN AND FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF WHEREAS. on A,,' I8. 7009, the Ory (MADI of It@ Ory of 4EJ➢M BooM ("Call adwed RHtbo I Ib. 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Me I b (u, (bb f ea relay IN reN Nop:i ng Va I xMNk), ADOPTED Mt 11'dnoNam, 201L i✓ Wn0lkll, Oala Proton ATTEST LROVE ASTOxl ON 01PEDAFAKE M: ON SOIIKE iS'AINn C, Ory ARa N Anuhnkx: Amer— 3LMugemMt arab wn - MAn rept a N ktlnd .n tN (d, eara once n M Ian4aMNMJ.9a MxrceMve 5666446 - Newport Harbor News Press Combined With Daily Pilot Page 2 of 2 Cos Angeles M E D I A G dimes R O U P PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF ILLINOIS County of Cook I am a citizen of the United States and a resident of the County aforesaid; I am over the age of eighteen years, and not a party to or interested in the action for which the attached notice was published. I am a principal clerk of the Newport Harbor News Press Combined With Daily Pilot, which was adjudged a newspaper of general circulation on June 19, 1952, Cases A24831 for the City of Newport Beach, County of Orange, and State of California. Attached to this Affidavit is a true and complete copy as was printed and published on the following date(s): Jun 16, 2018 I certify (or declare) under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Dated aticago, n is on this Illi day of , 20. [signatuy 435 N. Michigan Ave. Chicago, IL 60611 5666446 - Newport Harbor News Press Combined With Daily Pilot Page 1 of 2