HomeMy WebLinkAbout06 - NBRA BID Levy Assessments in FY 2019-20 and Fix Time and Place of Public Hearing; and Approve Funding SupportQ SEW Pp�T
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c�<,FORN'P City Council Staff Report
May 28, 2019
Agenda Item No. 6
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: 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. 2019-47: Resolution of Intention to Renew the
Newport Beach Restaurant Association Business Improvement
District, Levy Assessments for the Fiscal Year 2019-2020, and Fix
the Time and Place of a Public Hearing on June 11, 2019; and
Allocate City Funding Support in the Amount of $40,000 per Year
Through FY 2020
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
Board of Directors (Board) has submitted the BID's fiscal year (FY) 2018-2019 Annual
Report for City Council approval. The Board Chair has submitted a letter requesting the
renewal of the NBRA BID for FY 2019-2020 and for the City to provide ongoing funding
support for FY 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 Newport Beach Restaurant Association Business Improvement District's
Fiscal Year 2018-19 Annual Report and its Proposed Fiscal Year 2019-20 Budget;
c) Adopt Resolution No. 2019-47, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments for the Fiscal Year
of July 1, 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 Newport Beach Restaurant
Association Business Improvement District for Fiscal Year 2019-20 in the amount of
$40,000.
6-1
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 2
FUNDING REQUIREMENTS:
The City of Newport Beach (City) contracts with a vendor (the NBRA BID pays for these
services) to collect the stakeholder assessments on behalf of the City and remits the
money directly to the NBRA BID's bank account. The monies are used for funding the
BID's activities as described in the attached annual report. In addition to the stakeholder
assessments, the City Council has financially contributed to the NBRA BID by providing
$40,000 each year.
Should the City Council approve the NBRA BID's renewal and the request for ongoing
funding support, the City's proposed 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, 01020202-841046.
DISCUSSION:
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
was formed in 1995 (Ordinance 95-55) pursuant to the Parking and Business
Improvement Area Law of 1989 (1989 Law), codified in the Streets and Highway Code
Sections 36500 et seq. The NBRA BID was established for the purpose of financing
activities and programs to benefit the businesses located and operating in the area. The
NBRA BID encompasses any food -service business within the city boundaries, such as
restaurants, markets with dine -in or take-out food service, bars serving food, dessert
shops, coffee shops, juice bars, catering companies, or similar food -related business
(A boundary map is attached to the Resolution).
The NBRA BID is nearing the end of its FY 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 NBRA BID Board has prepared and submitted the attached annual report
(Attachment A) for the Council's review and approval. The report includes a summary of
the NBRA BID's FY 2018-19 accomplishments and revenues as well as its proposed
activities and budget for the upcoming fiscal year. In addition, the NBRA BID Board met
on March 20 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).
6-2
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 3
Fiscal Year 2018-19 Accomplishments
The NBRA BID Board used this fiscal year to focus on its strategic plan of increasing
marketing awareness, enhancing stakeholder benefits, elevating community profile, and
ensuring financial and administrative effectiveness. A brief highlight of some of the
activities from FY 2018-19 are listed below:
1. Restaurant Week. The 2019 Newport Beach Restaurant Week had a record
number of stakeholder businesses participating (69 restaurants), with 15 new
restaurants, and an overall 21 -percent increase from last year's event. The event
celebrated the 13t" anniversary of Restaurant Week and resulted in a 28 -percent
growth in customers and an estimated $3.7 million in consumer spending.
2. Marketing. The major focus of the NBRA BID is to provide strategic and
comprehensive marketing to promote dining in Newport Beach. Marketing efforts
included publishing the online Dine NB newsletter; running the 52 Weeks of
Dining email campaign; distributing quarterly stakeholder emails; and creating the
Weekly Bites and Culinary Journeys video series highlighting stakeholder
establishments.
The remainder of the FY 2018-19 activities are listed in the annual report.
Fiscal Year 2018-19 Operating Results
The estimated year-end operating budget for the NBRA BID's FY 2018-19 is reflected in
the table below.
7sitimated Operating Budget
Income City Funding, Assessments and Special Event Income
$252,000
Fund Balance Retained Earnings)
$20,000
Total Income and Fund Balance
$272,000
Total Expenditures
$252,000
Fund Balance (Retained Earnings for FY 2019-2020)
$20,000
Proposed Budget for Fiscal Year 2019-20
The proposed operating budget for FY 2019-20 is attached to the NBRA BID's annual
report for the City Council's approval and reflected in the table below.
Proposed Operating Bud.- Jk M
Income
City Support Funding Contribution and Special Event Grant
$49,000
Special Event Income
$33,000
Member Assessment
$170,000
Carry Over Retained Earnings)
$20,000
Total Income
$272,000
6-3
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 4
Expenses
• ; . ,
Operational Expenses
$15,600
Event Expenses
$53,000
Administration(Board/Admin/Bookkeeping Services
$96,000
Vendor/Contractor Services
$42,000
Outreach
Total Expenses
$65,400
$272,000
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 NBRA BID and the Corona del Mar
BID) under the 1994 Law. (See the separate staff report for more on the CdM BID.)
For quick reference, the below table highlights a few of the major differences between the
two types of BIDs.
Operating as a 1994 Law BID provides greater control for 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.
WE
• ; . ,
• • , N
IVI
Establishment
. City Council may establish on
• Members submit written
its own.
petition 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
Council.
10 years by the City Council.
• Compliance with all City
• Compliance with the City
policies and procedures.
Council approved
Management District Plan.
Governing Body
. City Council appointment of an
• City Council approves a
advisory board.
contract with a designated
nonprofit to serve as an
owners association.
Other
. More City oversight and staff
• More independence to
time to operate and manage.
operate and manage.
Operating as a 1994 Law BID provides greater control for 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.
WE
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 5
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. In addition, the NBRA BID Board formed a subcommittee to work with staff
and return with its findings.
Through the research and work conducted by the 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 NBRA BID's establishing Ordinance 95-55, use of the
member assessments are restricted to the listed improvements and activities —
91marketing, promotion and advertising of restaurants."
• 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 subcommittee worked diligently with staff and assessed several scenarios. With the
knowledge that a significant amount of outreach to the proposed stakeholders would be
required and there was no funding available, the subcommittee concluded that it was not
feasible. The subcommittee requested to meet with the council members who made the
reformation request.
During the meeting, staff and the subcommittee members presented their findings as
noted above. The council members provided feedback, which centered on wanting
reassurance that the BID members received a benefit from the mandatory requirement of
having to pay an annual assessment.
The subcommittee presented its findings to the NBRA BID Board. The Board agreed to
submit stakeholder benefit statistics during the annual renewal process.
BID Stakeholder Benefits
The NBRA BID provides marketing, advertising, public relations and event promotion in
support of its stakeholders. Through a City agreement, Newport Beach & Company
(NB&Co.) provides these services to, and are paid for by, the NBRA BID. The NBRA BID
prepared its FY 2018-19 marketing highlights to show the value of the benefits received
by the BID stakeholders (Attachment C).
6-5
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 6
Stakeholder highlights include the following:
• Website traffic reached over 163,000 unique visitors.
• Videos achieved 586,103 views on social media platforms.
• Paid media reached over 17.5 million online impressions.
• Email subscription database increased by 24 percent.
• Earned media generated over 2.3 million impressions.
Resolution of Intention
The Resolution of Intention (Attachment D) for the NBRA BID provides for the following:
The intention to renew the NBRA BID for fiscal year 2019-20.
The assessment levies shall be:
o $600 for full -serve restaurants
o $500 for fast -casual restaurants
o $500 for grocery or markets
o $150 for coffee, tea or specialty shops, dessert, bakery or treat shops, juice
bar or smoothie shop, and catering companies.
The improvements and activities to be funded shall be:
o Marketing, advertising, and public relations;
o Brochure development and distribution;
o Promotion of public events;
o General promotion of restaurant trade activities;
o Educational and training classes for members; and
o Membership in various organizations.
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 by the NBRA
BID Board.
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.
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for the
Fiscal Year 2019-2020, and Fix the Time and Place of a Public Hearing on
June 11, 2019; and Allocating City Funding Support in the
Amount of $40,000 Per Year Through FY 2020
May 28, 2019
Page 7
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — NBRA BID Annual Report and Budget
Attachment B — Letter from the NBRA BID Board Chair
Attachment C — NBRA BID Marketing Highlights
Attachment D — Resolution No. 2019-47
6-7
ATTACHMENT A
N � W PO RT BwACH
RESTAURANT
ASSOCIATION41,:0FLH,r�
Newport Beach Restaurant Business Improvement District
Fiscal Year 2018-2019 Annual Report
As required by Section 36533 of the California Streets and Highways Code, the annual report of
the Newport Beach Restaurant Business Improvement District (NBRA BID) contains the
required information as follows:
1. Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries
2. Improvement and Activities for the Fiscal Year of July 1, 2019 to June 30, 2020
Mission, Values and Goals
Pursuant to its current Strategic Business Plan, the NBRA BID will continue its mission
through adherence to defined values and guiding principles with the following priority
initiatives from the strategic business plan:
Marketing I Promotion
• New marketing and media partnerships investigation
• Enhanced website/social media engagement through video content
• Targeted and measurable annual marketing strategy
Communication I Education
• Engaging stakeholder outreach strategy and program execution
• Relevant educational program development based on stakeholder needs
• Ongoing calendar of events development
Community & Stakeholder Relations I Education
• Top Foodservice issues identification
• Clearinghouse set-up for charitable causes
• Targeted and measurable annual communications plan with appropriate messaging
Financial Resources and Administration
• Updated rolling year strategic plan review
• Aligned program of work and budget allocations
NBRA BID Vision 2021
The NBRA BID is a strong investor and community partner -marketing group extolling the
city's quality foodservice and brand experience.
• Enhanced foodservice sector brand marketing
• Increased communications of BID stakeholder benefits
• Strengthened community and industry partnerships with higher leveraged results
• Stronger selective communitywide foodservices event involvement and promotion
Objectives
1. Promote Newport Beach stakeholders and showcase the local culinary community to
increase diner frequency and generate stakeholder sales.
NBRA BID 2019 Annual Report I Page 1 of 9
•:
2. Grow awareness of the Dine Newport Beach brand and the Newport Beach dining
destination.
3. Foster the Newport Beach culinary community to increase stakeholder engagement.
4. Leverage the Dine Newport Beach brand and assets to generate incremental revenue
for increased program marketing and promotion.
Priority Initiatives
The NBRA BID has identified and will work in Fiscal Year (FY) 2019-2020 to implement and
exceed current and long-term NBRA BID goals and objectives through key activities to
realize its vision over the next year.
Brand I Dining Destination Awareness
NBRA BID will deploy integrated online, print, radio, public relations and social media
campaigns throughout the year during restaurant need periods, dining holidays and local
signature culinary events.
Website
The NBRA BID website, DineNB.com, will add relevant content, improved imagery,
additional dining guides, curated dining experiences and user-friendly navigation. Blog
content will be provided by staff and also by food and lifestyle bloggers and influencers. The
website will strive to improve its search engine optimization best practices and focus on
Newport Beach dining and restaurant keywords to index higher in organic search.
Mobile
As the majority of diners use mobile devices to explore culinary offerings and events, the
NBRA BID will create an enhanced mobile experience for diners to easily search restaurants
by neighborhood, cuisine, price point and location. In addition to user-friendly access to
dining guides and curated dining experiences, the Dine NB mobile experience will be
optimized for easy online reservation capability.
Digital Marketing
The Newport Beach dining destination, culinary promotions and events will be advertised
with targeted paid search ads on the major search engines and social networks. In addition,
the digital marketing team will leverage key industry and media partners to promote the
Newport Beach dining destination, Dine NB.com and program messaging.
Email
The Dine Newport Beach weekly newsletter will deliver relevant information to diners in a
timely manner. The newsletter will provide motivating content including culinary round -ups,
dining trends, restaurant offers and promotions, and dining events. The NBRA BID will
continue to focus on acquisition strategies to grow its subscriber list, as well as leverage
partner channels to deploy program messaging.
Social Media
Trending culinary topics, images and video content on the existing social channels will drive
followers and build online engagement. The NBRA BID will conduct strategic outreach to
key culinary, travel and lifestyle influencers in order to engage with these personalities to
broadcast to the larger social population and expand the networks.
NBRA BID 2019 Annual Report I Page 2 of 9
• e
Media Relations
The NBRA BID will develop relationships and grow engagement with food and travel writers,
influential lifestyle bloggers and media professionals to ensure that the local culinary
community, its stakeholders and their promotions and events receive editorial coverage in
local, regional and national media outlets throughout the year.
Advertising
Marketing campaigns with fresh creative and messaging will generate consumer awareness
and keep the Newport Beach dining destination, the local culinary community and
DineNB.com top of mind in the market. Advertising will appear in a variety of media
including online, print and radio outlets, as well as in partner channels.
Signature Event
The NBRA BID will produce the annual Newport Beach Restaurant Week, which promotes
the participating local restaurants and positions Newport Beach as Orange County's premier
dining destination.
Concierge Service
The NBRA BID will provide a toll-free phone number serviced by the Newport Beach &
Company concierge located at Fashion Island. The concierge service provides restaurant
and dining recommendations and reservation assistance.
Promotional Materials
Marketing collateral will be created to promote DineNB.com and its comprehensive online
dining guide. Collateral will be distributed throughout Orange County at airports, hotels,
office centers and key visitor locations, as well as at a variety of local events throughout the
year.
Vidpn CnntPnt
Messaging and content about Newport Beach dining will be produced in partnership with
Newport Beach TV as well as Visit Newport Beach lifestyle digital channel. An increased
library of video content will be utilized to tell the story of Newport Beach as a dining
destination and deployed through a variety of NBRA BID and partner channels as well as
paid media.
Industry & Community Relations
The NBRA BID will support organizations and events that assist in promoting the local
restaurant and culinary community. Support will include cooperative marketing, online and
social media support, public relations assistance and promotion of events with local
restaurant and culinary components.
Stakeholder Communications
The NBRA BID will engage NBRA restaurants, partners and local stakeholders with email
and occasional print communications. The quarterly NBRA newsletter includes information
on BID news and meetings, promotional opportunities, as well as industry information and
events.
Civic Event Participation
The NBRA BID will participate and contribute to a variety of local civic events including the
Annual Newport Beach Mayor's Dinner and the Newport Beach Police Appreciation
Breakfast.
NBRA BID 2019 Annual Report I Page 3 of 9
6-10
Professional Relationshi
The NBRA BID will maintain a variety of industry relationships and memberships with, but
not limited to, Newport Beach & Company, the OC Visitors Association, California
Restaurant Association and the Newport Beach Chamber of Commerce.
Annual Meeting
The NBRA BID will hold its Annual Meeting in March at a local venue, where it will provide a
review of the financial standing of the NBRA BID, review marketing and promotion results,
discuss goals, objectives and programs for the upcoming fiscal year, and obtain feedback
from the general membership.
BID Marketina. Administration & Accountin
The NBRA BID will contract with an appropriate, full-service vendor to handle all marketing,
communications, public relations, website management, administrative and accounting
services.
BID Operational Costs
The NBRA BID will continue to pay for all its operational costs including approved contracts,
postal mailings, bank fees and other administrative expenses.
3. The Cost of These Activities is Projected as Follows:
cam ��
Office Supplies
Postage
Bank/Merchant Fees
Membership Dues
Governance Meeting Expenses
Independent Contractors
•
I $950
$850
I $2,500
I $300
I $3,500
I $30,000
Bloggers
$8,000
Marketing Consultant Fees
$60,000
BID Administration Fees
$18,000
BID Accounting Services Fees
$18,000
Operational Expenses & Insurance (vendor services)
$12,000
Advertising — Consumer
$52,000
Community Partner Events
$3,000
Event Marketing Expenses
$40,000
Event Operating Expenses
$10,000
Research
$5,500
Collateral Production Expenses
$2,000
Social Media
$1,400
Website Maintenance
Media Relations
Total Expenses
$1,000
$3,000
$272,000.00
4. The Method and Basis of Levying the Assessment Shall be as Follows:
The benefit assessments will be collected by the City or its designee in one installment at
the beginning of the fiscal year, and shall be pro -rated for new businesses that open during
NBRA BID 2019 Annual Report I Page 4 of 9
6-11
the year. The benefit assessment will be levied upon persons conducting business within
the Restaurant Association Business Improvement District as follows:
Full Service Restaurant (e.g., with wait service
$600
Fast Casual Eatery (e.g., order at the counter
$500
Grocery or Market
$500
Coffee, Tea or Specialty Shop
$150
Dessert, Bakery or Treat Shop
Juice Bar or Smoothie Shop
Caterinq Company
$150
$150
$150
The penalty for delinquent payments shall be equal to that established for delinquent
business license fees pursuant to Chapter 5.04 of the Newport Beach Municipal Code,
providing that the penalty amount added shall in no event exceed fifty percent (50%) of the
annual assessment amount due.
5. Surplus Revenue to be Carried Over
It is estimated that $20,000 will be carried over from the NBRA BID's FY 2018-2019 budget
into the FY 2019-2020 budget.
6. Sources of Contributions Other Than Levied Assessments
Vi
In addition to the anticipated income from the levied assessments and late fees, the NBRA
BID's FY 2019-2020 budget includes $40,000 in funds from the City. The NBRA estimates
receiving $33,000 in fees for special events, in addition to $9,000 in potential grant funding
from the City for a special event.
Stakeholder Assessments
Carry Over Funds 2018-2019
$170,000
$20,000
Special Event Fees & Income
$33,000
City of Newport Beach Matching Funds
$40,000
City of Newport Beach Special Event Grant Funds
$9,000
Total Operating Income
$272,000.00
Accomplishments in Fiscal Year 2018-2019
FY 2018-2019 was a successful year for the NBRA BID as it completed the following
projects and initiatives:
• In partnership with Newport Beach & Company, the NBRA BID continued to evolve the
consumer facing Dine Newport Beach brand with new brand creative to market
restaurants, foodservice establishments and the local culinary community to diners.
• NBRA BID continued the development and ongoing maintenance of the NBRA BID
website, DineNB.com, with stakeholder listing information, photos, menus, reviews and
online booking capabilities.
NBRA BID 2019 Annual Report I Page 5 of 9
6-12
The website was updated throughout the year with robust content and videos on the
Newport Beach culinary community, dining guides, stakeholder offers and events,
restaurant industry news and NBRA BID information. New video content series was
created for social and the web:
o Weekly Bites
o Season 2 Culinary Journeys
• NBRA BID executed three promotional campaigns throughout the year for destination
and brand awareness to communicate the unique dining options available in the city.
0 2018 Summer Campaign — 52 Weeks of Dining
0 2019 Restaurant Week Campaign — Culinary Journeys
0 2019 Spring Campaign — Your Table Awaits
Print advertising appeared throughout the year in a variety of media outlets with in -
market distribution through subscribers and in local retail stores and markets, regional
hotels and concierges, visitor centers, airports, timeshare and vacation rentals and
luxury apartments.
o Newport Beach Visitor Guide o OC Weekly
o OC Guestbook o LA Times
o OC Official Visitor Map o The Daily Pilot
o DiningOut Magazine o NB Indy
o Newport Beach Magazine o NBFF Variety Issue
o Laguna Beach Magazine
Digital advertising throughout the year helped to boost brand and destination awareness,
as well as increased website visits. Online advertising and promotions appeared in the
following media outlets
o Google Display Network
o Google AdWords
o TripAdvisor
o Facebook
o Pandora
o Digital Display for both Mobile & Desktop viewing
• The consumer newsletter boosted distribution to weekly to its diner subscriber base in
order to keep the Newport Beach dining destination and NBRA BID stakeholders top of
mind in a competitive Orange County culinary marketplace. The newsletter includes
blogs and stories from respected local food and lifestyle bloggers, as well as timely
information on stakeholder offers and local culinary events.
• The NBRA BID conducted ongoing outreach throughout the year to food and travel
writers, lifestyle bloggers and key media in local and regional drive markets to generate
awareness for Dine Newport Beach the Newport Beach culinary community. The PR
team hosted 22 members of the media at a reception to kick-off Newport Beach
Restaurant Week in January at Lincoln Experience Center.
• The NBRA BID hosted a consumer event at the Lincoln Experience Center "Culinary
Journey Kickoff Event" which followed the media event. This event included 100 paid
guests and 24 VIP guests enjoying bites from eight NBRA restaurants
• Through consistent and strategic social media outreach on Facebook, Twitter and
Instagram, the NBRA BID experienced tremendous growth in the social channels, as
well as increased online engagement with consumers and stakeholders.
NBRA BID 2019 Annual Report I Page 6 of 9
6-13
• The NBRA BID outreached to key culinary and dining influencers in order to engage with
these personalities to broadcast to the larger social population and expand the network.
• The NBRA BID conducted messaging and promotion through its social channels on
restaurant offers, culinary events, dining trends and restaurant information on a weekly
basis
• The NBRA BID and Dine Newport Beach provided promotional support to local culinary
events including:
o Golden Foodie Awards
o Newport Beach Wine & Food Festival
o Newport Beach Film Festival
o Christmas Boat Parade
o Pacific Food & Wine Classic
• The NBRA BID produced the 2019 Newport Beach Restaurant Week with 69
participating restaurants. The event celebrated the 13th anniversary of Restaurant Week
marking "Culinary Journey." The marketing and promotional efforts included:
o Advertising — Print ads appeared in LOCALE OC, Newport Beach Magazine, The
Daily Pilot, The Coastline Pilot and Newport Beach Lifestyle. Digital ads
appeared online through the Google Ad Network, Facebook, Instagram, Visit
California, TripAdvisor, Los Angeles Times Digital Media, OC Greer,
VisitNewportBeach.com, DineNB.com, YelpOC and OpenTable. Paid and in-kind
advertising generated over 3.3 million impressions.
o PR Campaign — Editorial content, blogger coverage, calendar listings and a
reception to promote the event generated 28 articles, 11 social media posts and
over 1,876,000 social media impressions in media outlets in Orange County, Los
Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. The
campaign resulted in generating over 9.6 million media impressions.
Promotions — Over 100,000 promotional cards and posters were distributed
throughout the local area in hotels, visitor centers, airport, apartment
communities, at local events, participating restaurants and in City of Newport
Beach municipal statements in December and January. Outdoor promotional
signage and banners appeared throughout Newport Beach.
o Email Blasts — Email communications went out through Dine Newport Beach,
Visit Newport Beach, OpenTable, YELP, Lido Marina Village and The Irvine
Company email database reaching over two -million consumers throughout the
Los Angeles and Orange County regions.
o Results — OpenTable reported 89 percent of NBRW consumers would
recommend to a friend; and restaurants reported sales growth of 14.7 percent
during Restaurant Week. There were over 15.6 million advertising and media
impressions generated for the event. The overall event resulted in an estimated
consumer spend of $3.7 million, which is an increase of 26 -percent year over
year.
• The NBRA BID published a quarterly industry newsletter to its stakeholders that includes
timely information on industry and association news and events, as well as promotional
opportunities.
NBRA BID 2019 Annual Report I Page 7 of 9
6-14
• Through the partnership with Newport Beach & Company, the NBRA BID continued
providing a toll-free phone number and live concierge assistance to diners seeking
information on Newport Beach restaurants through the on-site concierge desk located at
Fashion Island.
• The NBRA BID participated and/or contributed to the following community programs and
events: Newport Beach Mayor's Dinner, California Restaurant Association Orange
County Chapter, Newport Beach & Company Annual Marketing Outlook Dinner, Newport
Beach Police Appreciation Breakfast and other community events.
• The NBRA BID continued to maintain relationships with Newport Beach & Company, OC
Visitors Association, California Restaurant Association and the Newport Beach Chamber
of Commerce.
• The NBRA BID contracts through the City with Newport Beach & Company to handle all
marketing, public relations, communications, website management, BID administrative
services, and bookkeeping services.
• The NBRA BID continued to offer online credit card processing services for members to
pay their assessment and event participation fees.
• The NBRA BID conducted a survey of it stakeholders and a planning session to develop
an updated three-year strategic plan for the organization.
• The NBRA BID conducted outreach and recruited new stakeholders to serve on the
NBRA BID's Board of Directors.
• The NBRA BID held its Annual Meeting at Muldoon's Irish Pub in March (per the NBRA
BID Bylaws), where it provided a review of the BID's financial standing: reviewed
marketing and promotion results: discussed goals and objectives and programs for the
upcoming fiscal year, and obtained feedback from the general membership.
Fiscal Year (FY) ODeratina Results
During FY 2018-2019, NBRA collected approximately $170,000 in stakeholder assessments
and approximately $19,950 in stakeholder assessment late fees. The City contributed $40,000
as the fifth installment of a five-year commitment to support the BID. The NBRA Bid received
$33,240 in participation fees for 2019 Newport Beach Restaurant Week, and a grant of $9,000
from the City in support of Newport Beach Restaurant Week. The total income for FY 2018-
2019 is expected to be approximately $272,190.
By the end of FY 2018-2019, the NBRA BID will spend approximately $272,190 for the
approved activities, funded by the FY 2018-2019 revenue.
Cnnclusinn
The stakeholders of the Newport Beach Restaurant Association BID wish to thank the Newport
Beach City Council for its continued financial support and efforts on behalf of the NBRA.
NBRA BID 2019 Annual Report I Page 8 of 9
6-15
NEWPORT BwACH
RESTAURANT
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Operating Budget
July 1, 2019 — June 30, 2020
�r�EW�Rr
v y.a x
c9crFOwN•r
•Ilk
Stakeholder Assessments
•
$170,000
Carry Over funds from 2018-2019
$20,000
Special Event Fees & Income
$33,000
City of Newport Beach Matching Funds
$40,000
City of Newport Beach Special Event Grant Funds
$9,000
Total Income
$272,000
NBRA BID 2019 Annual Report I Page 9 of 9
6-16
TOTALEXPENSES
Office Supplies I
$950
Postage
$850
Bank/Merchant Fees I
$2,500
Membership Dues
$300
Governance Meeting Expenses I
$3,500
Independent Contractors
$30,000
Bloggers
$8,000
Marketing Consultant Fees
$60,000
BID Administration Fees
$18,000
BID Accounting Services Fees
$18,000
Operational Expenses & Insurance (vendor services)
$12,000
Advertising — Consumer
$52,000
Community Partner Events
$3,000
Event Marketing Expenses
$40,000
Event Operating Expenses
$10,000
Research
$5,500
Collateral Production Expenses
$2,000
Social Media
$1,400
Website Maintenance
$1,000
Media Relations
$3,000
Total Expenses
$272,000.00
NBRA BID 2019 Annual Report I Page 9 of 9
6-16
ATTACHMENT B
iNEWPORT B=ACH
RESTAURANT
e ASSOCIATION
April 15, 2019
Newport Beach City Council
100 Civic Center Drive
Newport Beach, CA 92660
Re: Request for Continued Funding Support for NBRA BID
Dear Mayor Dixon and City Council Members,
SEW Pp�T
r9C� FO RN\?
On behalf of the Advisory Board of Directors for the Newport Beach Restaurant Association
Business Improvement District (NBRA BID), I would like to thank the City Council for its support of
the NBRA BID over the past 24 years.
In addition to the roughly $189,000 the NBRA BID receives annually from member assessments,
the City has provided the NBRA BID with an annual support of $40,000 in a three-year agreement,
which concludes at the end of FY 2021 -2022. As we look forward to dedicating our time and
efforts toward the BID's 2019 - 2020 FY goals and priorities, the Board would like to request
continued City support funding at the same contribution of $40,000 annually for a three- year
period beginning FY 2019-2020.
On behalf of the NBRA BID, we greatly appreciate the City Council's funding to support the NBRA
BID, and we look forward to continuing to showcase the local culinary community that will increase
diner frequency and generate local culinary sales.
Thank you in advance.
Sincerel p
C�
Jordan Otterbein
NBRA BID Board President
Owner, A Restaurant
cc: Grace Leung, City Manager
NBRA BID Board of Directors
Gary Sherwin, Newport Beach & Company
Tara Finnigan, Deputy City Manager
Mary Locey, Public Information/Management Analyst
6-17
ATTACHMENT C
N=WPORTBEACH Marketing Highlights for I
001RESTAURANT
ASSOCIATION Fiscal Year 2018-2019 N =WPORT BEACH
Dine Newport Beach
Dine Newport Beach is the strategic marketing initiative cooperatively created and managed by
the Newport Beach Restaurant Association and Newport Beach & Company. It was designed to
enhance the economic vitality of the Newport Beach culinary community by showcasing and
promoting Newport Beach, California as a dining destination, offering innovative cuisine, fresh
fare, diverse experiences and a variety of exceptional restaurants.
Paid Media (Advertising)
• Online impressions reached over 17.5 million within the LA and OC regions, an increase
of 23 percent from the prior year.
• Targeted media such as Pandora, relevant digital sites and social channels were used to
broaden audience reach and engagement.
• Your Table Awaits, a destination and brand awareness campaign, focuses on holiday
dining and runs from April until June 2019. The campaign is estimated to yield 5.8
million in media impressions.
Earned Media (Public Relations)
• Impressions reached over 9.6 million within the LA, OC and San Diego regions, an
increase of 38 percent from the prior year.
• Secured over 38 public relations placements in regional publications such as the Orange
County Business Journal, LA Times, and The Taste, including social media efforts and
Dine NB emails, which generated over 2.3 million in earned media impressions.
• Collaborated with a top Instagram influencer, @Roamaroo, for the spring campaign
initiative showcasing special occasion dining within the destination.
Direct Marketing
• Published the Dine NB Newsletter, which includes stakeholder spotlights, upcoming
events, and special offers through the email subscription database, as well as content
prepared by food bloggers.
• Ran a successful email campaign, 52 Weeks of Dining, in July of 2018, which was focused
on increasing the email subscription database.
o Pre-campaign:5,427 subscribers
o Post campaign: 6,715 subscribers
o Increased distribution database by 24 percent.
o Yielded 3.4 -million impressions.
• Distributed quarterly stakeholder emails, which provides partner updates and
stakeholder applicable content.
Created the video series, Weekly Bites, highlighting stakeholder establishments. These
videos generated over 586,103 views in its first season.
RMH
Website
• Website traffic increased to over 163,000 unique visitors.
Newport Beach Restaurant Week Event
• 69 participating restaurants, an increase of 21 percent year over year (YOY).
• 15 new restaurants participated, an increase of 114 percent YOY.
• 22 media representatives attended the media launch event.
• Culinary Journey's taste event sold 100 tickets to the public.
• Revenue for event participation of $33,240, a five -percent increase from last year.
• Estimated consumer spend of $3.7 million, an increase of 28 percent YOY.
• Established partnerships with OpenTable and YelpOC.
• Paid media partnership with Locale Magazine, which featured the event and included a
spread in its foodie edition, as well as two blogs and a three-part video content series.
• Total Restaurant Week campaign impressions estimated at 15.6 million.
Collected over 90 percent of the stakeholder assessments for a total of $170,325 in
revenue.
6-19
ATTACHMENT D
RESOLUTION NO. 2019 - 47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE NEWPORT BEACH
RESTAURANT ASSOCIATION BUSINESS
IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS
FOR THE FISCAL YEAR OF JULY 1, 2019 TO JUNE 30,
2020, AND FIX THE TIME AND PLACE OF A PUBLIC
HEARING
WHEREAS, the Newport Beach Restaurant Association Business Improvement
District ("NBRA BID") was established in 1995 by Ordinance No. 9555, pursuant to the
Parking and Business Improvement Area Law of 1989, California Streets and Highways
Code, Sections 36500 et seq., (1989 Law"), which requires an annual report to be filed
and approved by the City Council of the City of Newport Beach ("City") for each fiscal
year;
WHEREAS, the advisory board, known as the NBRA BID Board of Directors, has
prepared an Annual Report for the 2018-2019 fiscal year which is on file in the Office of
the City Clerk ("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 NBRA 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 NBRA BID for the fiscal year July 1, 2019 to June 30, 2020, pursuant to the 1989
Law. Such benefit assessment shall be as follows:
Stakeholder Category
Assessment
Levy
Full -serve restaurant (e.g., with wait staff)
$600
Fast -casual restaurant (e.g., place order at counter)
$500
Grocery or market
$500
Coffee, tea or specialty shop
$150
Dessert, bakery or treats
$150
Juice bar or smoothie shop
$150
6-20
Resolution No. 2019 -
Page 2 of 4
Catering company $150
Businesses Exempt from the LABRA BID
Certified Farmer's Markets, mini -marts, yachts and charters, banquet
facilities, private membership clubs, theaters and gas stations.
Section 3: The penalty for delinquent payments shall be equal to that
established for delinquent business license fees pursuant to Newport Beach Municipal
Code Chapter 5.04, providing that the penalty to be added shall in no event exceed fifty
percent (50%) of the assessment amount due.
Section 4: The benefit assessments shall be collected by the City, or its
designee, in one annual installment. The assessment for new businesses shall be pro-
rated according to the number of full months remaining in the NBRA BID's fiscal year.
Section 5: The improvements and activities to be funded by the benefit
assessments shall include only the following:
A. Marketing, advertising, and public relations;
B. Brochure development and distribution;
C. Promotion of public events;
D. General promotion of restaurant trade activities;
E. Educational and training classes for members; and
F. Memberships in various organizations deemed to promote dining in
Newport Beach.
The implementation of these actions is described in the Annual Report, which is on file
with the City Clerk's Office located at 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660.
Section 6: Any food service business within the boundaries of the City of
Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars
serving food, dessert shops, coffee or tea shops, juice bars, catering companies, or
similar food -related business within the boundaries of the City of Newport Beach is part
of the NBRA BID, as set forth with greater specificity in the boundary map attached hereto
as Exhibit A, and incorporated herein by reference.
6-21
Resolution No. 2019 -
Page 3 of 4
Section 7: The time and place for a public hearing on the NBRA BID renewal is
set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 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 NBRA
BID which pay fifty percent (50%) or more of the total assessments to be levied, no further
proceedings to renew the NBRA BID shall be taken for a period of one year from the date
of the finding of a majority protest by the City Council. If the majority protest is only against
the furnishing of a specific type or types of improvements or activity or benefit within the
NBRA BID, those types of improvements or activities or benefit zones shall be eliminated.
Section 9: Further information regarding the proposed NBRA BID renewal may
be obtained at the City Manager's Office, 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660; 949-644-3031.
Section 10: The City Clerk is directed to provide notice of the public hearing in
accordance with Streets and Highways Code Sections 36523 and 36541.
Section 11: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 12: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall not
affect the validity or constitutionality of the remaining portions of this resolution. The City
Council hereby declares that it would have passed this resolution, and each section,
subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses or phrases be declared invalid or
unconstitutional.
Section 13: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
6-22
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:
beilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A - Boundary Map
6-23
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