Loading...
HomeMy WebLinkAbout05 - CdM BID Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding SupportTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report May 28, 2019 Agenda Item No. 5 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Melanie Franceschini, Administrative Analyst mfranceschini@newportbeachca.gov and Mary Locey, Administrative Analyst mlocey@newportbeachca.gov PHONE: 949-644-3028 1949-644-3031 TITLE: Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 ABSTRACT: 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 2019-20 and for the City to provide ongoing funding support through fiscal year 2019-20. RECOMMENDATIONS: a) Determine this 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 this action 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 2018-19 Annual Report and its Proposed Fiscal Year 2019-20 Budget; c) Adopt Resolution No. 2019-46, 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, 2019 to June 30, 2020, and Fix the Time and Place of a Public Hearing for June 11, 2019; and d) Approve a Commitment of City Funding Support to the Corona del Mar Business Improvement District for Fiscal Year 2019-20 in the amount of $40,000. 5-1 Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 May 28, 2019 Page 2 FUNDING REQUIREMENTS: The City of Newport Beach (City) contracts with a vendor (the CdM BID pays for these services) 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 as described in the attached annual report. In addition to the member assessments, the City Council has financially contributed to the CdM BID by providing $40,000 each fiscal year. Should the City Council approve the CdM BID's renewal and its request for ongoing funding support, the City's proposed fiscal year (FY) 2019-20 budget includes sufficient funding for the City to contribute $40,000. It will be expensed to the City Manager's Office, Economic Development Division, Special Department Expense Account 0120202- 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 that benefit the member 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 2018-19 operating period and the Board, which serves in an advisory capacity to the City Council, has requested renewal of the BID for FY 2019-20. Pursuant to the 1989 Law, an annual report must be prepared and filed with the City Council and a public hearing (scheduled for June 11) 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 City Council's review and approval. The report includes a summary of the CdM BID's FY 2018-19 accomplishments and revenues, as well as its proposed activities and budget for the upcoming fiscal year. In addition, the CdM BID Board met on April 25 and recommended that the Chair submit a letter to the City Council requesting the BID's renewal and requesting the City provide ongoing funding support for the BID (Attachment B). Fiscal Year 2018-19 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, and regular maintenance programs and improvement projects. Board members have been working on several projects, which are consistent with its efforts to revitalize the business district and improve the economic growth of its member businesses. Highlights of some of the projects from FY 2018-19 are listed below. 5-2 Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 May 28, 2019 Page 3 1. Parking and Transportation Improvements. A parking study to address potential solutions to improve parking within the Corona del Mar Business District and adjacent residential areas was completed. The Board continues to work toward the implementation of the study's three recommendations: a. Increase the parking time limit on East Coast Highway from one hour to two hours; b. Incorporate the underutilized private parking supply for public use; and c. Lower the City's parking requirements in the business district. 2. East Coast Highway Improvements. The CdM BID Board continues to work on the appearance of the business district through various physical improvement projects, which include improvements to the Marguerite Avenue and East Coast Highway intersection, enhancements to the south entry, improved appearance of the sidewalks, and an updated urban planning charrette. 3. "Shop Local" Marketing Campaign. The Board's "Shop Local" marketing campaign is a coordinated effort with the Corona del Mar Chamber of Commerce. The campaign's branded design theme is used strategically throughout the year to promote the business district. The remainder of the FY 2018-19 activities listed in the annual report include the ongoing and regular efforts of the CdM BID for general maintenance of the East Coast Highway tree -well landscaping and street furniture (benches, trash receptacles, bike racks) and the marketing outreach efforts for events and activities that occur within the CdM BID boundaries. FY 2018-19 Operating Results The estimated year-end operating budget for the CdM BID's FY 2018-19 is reflected in the table below. Income (City Funding, Assessments and Late Fees) $138,681 Fund Balance (Retained Earnings) $84,178 Total Income and Fund Balance $222,859 Total Expenditures $143,016 Fund Balance (Retained Earninqs for FY 2019-2020) $79,843 Proposed Budget for FY 2019-20 The proposed operating budget for FY 2019-20 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 on the next page. 5-3 Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 May 28, 2019 Page 4 FY i Operating Budget Income City Support Funding Late Fees Member Assessment $40,000 $2,000 $100,000 Total Income $142,000 Expenses psi-@ Highway Decor and Banner Program $34,000 Website Maintenance and Support Services $8,550 Marketing and Administration Services $55,578 Streetscape Furniture and Maintenance $10,200 Landscaping $30,857 Administration(Board/Admin/Bookkeeping Services $20,308 Improvements $59,350 Outreach $3,000 Total Expenses Net Ordinary Income Other Income Expense Retained Earning/Carry Over Net Income $221,843 $79,843 $79,843 $0 Review of BID Structure During the 2018 renewal process, members of the City Council requested staff review the potential to reform the City's two 1989 Law BIDs (the CdM BID and the Newport Beach Restaurant Association (NBRA) BID) under the 1994 Law. (See the separate staff report also on the May 28, 2019 agenda for more on the NBRA BID.) For quick reference, the below table highlights a few of the major differences between the two types of BIDs. 5-4 ffll W-1411WIM ml_ 11 psi-@ Establishment . City Council may establish on • Members submit written petition its own. to form. • Based on a majority member • Based on a majority member protest. vote. Management . Compliance with the Ralph M. • Compliance with the Ralph M. Brown Act. Brown Act. • Annual renewal by the City • Renewed every five or up to 10 Council. years by the City Council. • Compliance with all City • Compliance with the City Council policies and procedures. approved Management District Plan. Governing . City Council appointment of an • City Council approves a contract Body advisory board. with a designated nonprofit to serve as an owners association. Other . More City oversight and staff • More independence to operate time to operate and manage. and manage. 5-4 Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 May 28, 2019 Page 5 Operating as a 1994 Law BID provides greater control to the members through autonomy from the City's oversight in BID management and operations and, since a majority vote is required, validation that the membership perceives a benefit of belonging. The owners association would assume full responsibility for contracting and complying with the Management District Plan. City staff time would be required to post agendas and assist with the annual reporting requirements to the City Council. To address the City Council's request, staff conducted additional research to determine if the existing BID under the 1989 Law could use its available resources to consider reforming. Through the research and work conducted by the NBRA BID subcommittee, several restrictions were discovered that would make the process labor intensive and expensive as outlined below. • City Support — Per Council Policy A-5: Prohibition on Tax Measure Advocacy, City staff and funding could not be used to support the formation. • BID Revenue — Per the CdM BID's establishing Ordinance 98-15, use of the member assessments are restricted to the listed improvements and activities — 11physical improvements, maintenance, marketing and promotions." • BID Board — Members of the existing advisory board would be restricted from discussing or taking action on forming as another entity. • Outreach — Conducting outreach to the proposed membership and providing educational materials about the 1994 Law BID and its benefits would require time and money. Proposed members would have to volunteer their time and financially support this undertaking. The CdM BID Board did not entertain the idea of reforming. The Board wishes to remain a 1989 Law BID. BID Member Benefits The CdM BID has a unique and long-standing partnership with the Corona del Mar Chamber of Commerce (Chamber), a voluntary membership organization located within the business district. Through a City agreement, the Chamber provides the CdM BID with administration and marketing services, coordination of programs and member communications, and assists with agenda preparation and reporting. BID funds are used to pay for these services. The marketing campaigns for the business district and the production of the CdM Business Directory are a joint effort with the Chamber. The BID also financially supports various Chamber programs and events, and finances the decorative banners that promote Chamber events in the business district. The coordinated marketing efforts support the CdM BID members by driving local and regional visitors to the area to shop in the retail establishments, dine from a large selection of restaurants and cafes, and obtain a variety of professional services. 5-5 Resolution No. 2019-46: Resolution of Intention to Renew the Corona del Mar Business Improvement District, Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding Support for FY 2019-20 May 28, 2019 Page 6 Resolution of Intention The Resolution of Intention (Attachment C) for the CdM BID provides for the following: The intention to renew the CdM BID for fiscal year 2019-20. The assessment levies shall be: o $500 per year for banks and financial institutions that are exempt from City business license regulations; o $250 per year for insurance agencies that are exempt from City business license regulations; o $0 per year for independent contractors (hair stylists, nail technicians and real estate agents) operating in an establishment owned by another person; and 0 150 percent of the annual business license tax for all other businesses. The improvements and activities to be funded shall be: o Marketing, advertising, and public relations; o Public area improvements and maintenance programs; o Promotion of public events in the area; o Promotion of retail trade activities; and o Administration. The public hearing shall be heard on June 11, 2019 at 7 p.m. in the City Council Chambers. Per the 1989 Law, the City Council may revise, change, reduce or modify the assessment or the type or types of improvements and activities proposed to be funded. 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 No. 2019-46 5-6 ATTACHMENT A Corona del Mar Business Improvement District ANNUAL REPORT Year -End Report for FY 2018-2019 Improvements and Activities for FY 2019-2020 This is the 2311 annual report for 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, 2019 to June 30, 2020. A. Vision 2020 — Revitalization Improvements and Maintenance The following are revitalization project improvements and maintenance programs planned for the CdM BID for the fiscal year (FY) 2019-2020. These programs and related expenditures are consistent with the BID's Vision Plan. 2.1 Parking & Transportation Improvements The BID Advisory Board of Directors (Board) concluded a parking study performed by Walker Consultants during FY 2018-2019. The Board has put forth a concentrated effort on the study's findings and is working with City staff on implementation of potential solutions to improve parking within the Corona del Mar Business District and adjacent residential areas. The Board has been working with City staff, property owners and residents on the three items recommended for implementation: 1) Increase the parking time limit on East Coast Highway from one hour to two hours; 2) Incorporate underutilized private parking supply in the public parking supply; and 3) Lower parking requirements in the business district. 2.2 East Coast Highway Improvements The BID Board continues to work on the appearance and safety of the Business District through various physical improvement projects and has budgeted the necessary funds for FY 2019-2020. Projects under consideration include improvements to the village center at the Marguerite Avenue and East Coast Highway intersection including modifications to the current landscaping, replacement of the dolphin topiaries, and enhanced sidewalk enhancement at the intersection corners. Other projects under consideration are enhancing to the south entry, sidewalk appearance and an updated urban outreach planning charrette. 2.3 Landscaping & Tree Well Maintenance The BID's FY 2019-2020 budget includes funding for the continued maintenance and necessary improvements of the tree well landscaping along East Coast Highway. 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 contract landscape vendor. 2.4 Streetscape & Street Furniture Maintenance 5-7 The BID's FY 2019-2020 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 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 and East Coast Hwy.) The BID's FY 2019-2020 budget includes funding to maintain the electrical system, which was installed and paid for by the BID, in the gateway area and landscaped median to ensure proper working order and safety. 2.6 Business District Holiday Decor Program The BID's FY 2019-2020 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 for the contracted services. 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 Plan — Marketing and Member Benefits 2.7 Website and Communications The BID's interactive website offers 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. 2.8 Marketing and Media Campaigns The Board launched a "Shop Local" marketing campaign in a coordinated effort with the CdM Chamber of Commerce in FY 2017-2018. This campaign involved a variety of marketing and media components to assist the business district's retailers. The Shop Local program included a new design theme strategically used throughout the marketing components such as street light banners, direct mail pieces, newspaper and print advertisements, events and more. The BID's FY 2019-2020 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 digital and media relations and maintain or develop new marketing collateral. 2.9 CdM BID Member Directory, Window Decals and Informational Brochures The BID's FY 2019-2020 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 Plan 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 5-8 assessments a membership decal signifying they are members in good standing. 2.10 Christmas Walk The BID will contribute funds from the FY 2019-2020 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 East Coast Highway Dolphin Topiary Decor Program The BID's FY 2019-2020 budget includes funding to coordinate the festive seasonal decorations of the dolphin topiaries at the intersection of Marguerite Avenue and East Coast Highway. This continues to be a tradition that is embraced by the community. 2.12 Street Light Banner Program The BID's FY 2019-2020 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 and Reporting The BID's FY 2019-2020 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 2019-2020 BID budget includes funding to continue to pay for and manage the quarterly Business Beautification Award Program. The program identifies member businesses that have renovated, remodeled or enhanced the storefront aesthetics, which contributes to the overall Vision 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. 5-9 D. Vision 2020 — BID Administration 2.17 Administrative Consulting and Reporting The BID's FY 2019-2020 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 and keeping the Board programs on track. 2.18 Administrative Expenses The BID's FY 2019-2020 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 and Billing Services The BID's FY 2019-2020 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 the BID Board. 3. Estimated Cost of Improvements & Activities for FY 2019-2020 Improvements $ 59,349.86 Landscaping (Maintenance & Other) $ 30,857 Streetscape (Maintenance & Other) $ 10,200 Marketing and Administration $ 55,578 Website (Hosting, Tech Support, Maintenance, Marketing) $ 8550 Holiday Decor and Street Light Banner Program $ 34,000 Outreach $ 3,000 Administration and Financial Services $ 20,307.50 TOTAL $ 221,842.36 Vision Plan Revisions The Board continues to re-evaluate and update the Vision Plan. Subcommittee meetings and workshops to develop new objectives will continue in FY 2019-2020 and the findings will be shared with BID and community members. 4. Method and Basis of Levying the Assessment The member benefit assessments are 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 of the following types of businesses, as an independent contractor in an establishment owned 5-10 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 has made improvements in collecting delinquent member assessments and will continue to work on the collection effort. 5. Surplus Carryover from Fiscal Year 2018-2019 It is estimated that approximately $79,842 will be carried over from FY 2018-2019 to FY 2019- 2020 due to projects in process. 6. Sources of Contributions from Other Than Levy In addition to the annual BID assessments, the CdM BID's FY 2019-2020 budget includes $40,000 in funding from the City. The CdM BID Board recommended that the Board Chair submit a letter to the City Council requesting the City's ongoing funding support of $40,000 for FY 2019-2020. 7. Prior Year Accomplishments FY 2018-2019 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 2018-2019 Projects and Programs* Improvement Projects and Parking $ 3,806 District Parking Study (Improvement projects in process / continued) Landscaping $ 28,834 Contracted services for tree -well landscaping maintenance and irrigation repairs Streetscape/Maintenance $ 7,103 Powder -coating, maintaining and replacement of trash receptacles and benches Holiday Decor and Street Light Banner Program $ 27,578 Contracted service for installation, removal and storage Website Management & Communications $ 7,844 Contracted service for management, maintenance, hosting, technical support and marketing. Marketing, Administration and Outreach $ 48,619 Contracted service for providing the Shop Local marketing campaign, BID brochures, CdM Business Directory, dolphin topiary program, beautification program, Christmas Walk sponsorship, membership decals, annual meeting, mailings, storage and physical office facilities, administration, agendas, reports and communications Administration and Accounting $ 19,233 Contracted services for billing, financial reporting, bookkeeping, mailings *Estimated fiscal -year end TOTAL $ 143,017 5-11 Corona del Mar Business Improvement District Proposed Operating Budget Fiscal Year July 1, 2019 thru June 30, 2020 Ordinary Income Expense Budget Income City Funds 40,000 Late Fees 2,000 Member Assessments 100,000 Total Income $142,000 Expense Highway Holiday Decor and Banner Program 34,000 Website Maintenance and Support Services 8,550 Marketing and Administration Services 55,578 Streetscape Furniture and Maintenance 10,200 Landscaping 30,857 Administration (Board/Admin/Bookkeeping Services) 20,308 Improvements 59,350 Outreach 3,000 Total Expenses $221,843 Net Ordinary Income Other Income Expense (Retained Earnings/*Carry Over) *Carry Over from continued projects in process Net Income (79,843) 79,843 0 5-12 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 April 25 , 2019 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 (CBM BID), I would like to thank the City Council for its support of the CdM BID over the past 22 years. As we look forward to dedicating our time and efforts towards the district's 2019- 2020 FY goals and priorities, the Board is submitting our Annual Report and Budget for the BID's Renewal for FY 2019-2020. We would like to also request continued City support funding at the same annual contribution of $40,000 to assist us with our Vision Plan improvement projects and budget goals. In addition to the roughly $100,000 the CdM BID receives annually from member assessments, the City's contribution assists us in keeping Corona del Mar's Business District vibrant and safe. On Behalf of the CdM BID, we greatly appreciate the City Council's funding support and we look forward to continuing to enhance and revitalize the Corona del Mar Business District. Thank you in advance. 3`3ewde Sua6tad Bernie Svalstad, Chairman Corona del Mar Business Improvement District RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID www.CdMVillage.com Facebook/CdM BID 5-13 ATTACHMENT C RESOLUTION NO. 2019 - 46 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, 2019 TO JUNE 30, 2020, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING WHEREAS, the Corona del Mar Business Improvement District ("CdM BID") was established in 1997 by Ordinance No. 97-24, pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Sections 36500 of seq., ("1989 Law"), which requires an annual report to be filed and approved by the City Council of the City of Newport Beach ("City") for each fiscal year; WHEREAS, the advisory board, known as the CdM BID Board of Directors, has prepared an annual report for the 2018-2019 fiscal year which is on file in the City Clerk's Office ("Annual Report"), and WHEREAS, on May 28, 2019, 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, 2019 to June 30, 2020, 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, 2019 to June 30, 2020, 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: 5-14 Resolution No. 2019 - Page 2 of 4 1. Hair stylists 2. Nail technicians 3. Real estate agents. D. The assessment for all other businesses within the CdM BID shall be one hundred fifty percent (150%) of the annual business license tax as established pursuant to 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 as Exhibit A, and incorporated herein by reference. 5-15 Resolution No. 2019 - Page 3 of 4 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 11, 2019, at the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660. Section 8: During the public hearing, the City Council shall hear and consider all protests against the establishment area, or the furnishing of specified types of improvements or activities within the area. Protests may be made orally or in writing, but if written shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of the businesses within the CdM BID which pay fifty percent (50%) or more of the total assessments to be levied, no further proceedings to renew the CdM BID shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specific type or types of improvements or activity or benefit within the CdM BID, those types of improvements or activities or benefit zones shall be eliminated. 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, Division 6, Chapter 3, 5-16 Resolution No. 2019 - Page 4 of 4 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 28th day of May, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaron C. Harp City Attorney Attachment(s): Exhibit A - Boundary Map 5-17