HomeMy WebLinkAbout10 - Resolution of Intention to Renew the NBRBID, Levy Assessments in FY 2019-20Q �EwP0
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TO:
FROM:
CITY OF
NEWPORT BEACH
City Council Staff Report
June 11, 2019
Agenda Item No. 10
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
Grace K. Leung, City Manager - 949-644-3001,
gleung@newportbeachca.gov
PREPARED BY: Mary Locey, Administrative Analyst
mlocey@newportbeachca.gov
PHONE: 949-644-3031
TITLE: Resolution No. 2019-47: Resolution of Intention to Renew the
Newport Beach Restaurant Association Business Improvement
District, Levy Assessments in FY 2019-20, and Fix the Time and
Place of a Public Hearing
ABSTRACT:
On May 28, 2019, the City Council considered staff's recommendation to renew the
Newport Beach Restaurant Association Business Improvement District (NBRA BID). The
City Council, after discussion and public comment, approved a motion to withhold City
funding support to the BID and continued the item to provide the BID Board time to meet
and revise its annual report and budget, which is attached for City Council approval.
RECOMMENDATION:
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 25, 2019.
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.
10-1
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District, Levy Assessments in
FY 2019-20, and Fix the Time and Place of a Public Hearing
June 11, 2019
Page 2
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 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
25) must be held prior to the BID's renewal.
It is important to note that 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 autonomy from the City's oversight in BID
management and operations and, since a majority membership vote is required,
validation that the members perceive a benefit of belonging to the organization.
10-2
.;. BID
1994
Existing Structure
Reviewed Structure F
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 autonomy from the City's oversight in BID
management and operations and, since a majority membership vote is required,
validation that the members perceive a benefit of belonging to the organization.
10-2
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District, Levy Assessments in
FY 2019-20, and Fix the Time and Place of a Public Hearing
June 11, 2019
Page 3
At its May 28 meeting, the City Council considered the NBRA BID Board's request to
renew as a 1989 Law BID and receive $40,000 in annual funding support from the City.
The City Council discussed the BID's request and its current formation as a 1989 Law
BID. The Council reaffirmed its desire for confirmation that the BID members are receiving
a benefit by re-forming as a 1994 Law BID.
A motion was approved to withhold the City's $40,000 in funding support and continue
the item to allow the BID Board an opportunity to revise its budget. In addition, the creation
of a Council Ad Hoc Committee to review how the BID aligns with City Council priorities
was recommended. (See the separate staff report for the creation of the committee.)
Per direction from the City Council, the NBRA BID Board held a special meeting on
May 30 to revise its FY 2018-19 Annual Report and FY 2019-20 Budget. The Board
revised its budget to eliminate the anticipated funding support from the City, reducing its
proposed expenditures by $49,000 ($40,000 annual funding support and $9,000 Special
Event Grant support) from its meeting expenses, consumer advertising and event
operating budget line items. The revised annual report and budget are included for the
Council's consideration and approval (Attachment A).
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 on the following page.
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. A summary is reflected in the table on the following
page.
Proposed FY 2019-20 Operating Bud
Income
Special Event Income
Member Assessment
$33,000
$170,000
Carry Over Retained Earnings)
$20,000
Total Income
$223,000
Expenses
Operational Expenses
$9,250
Event Expenses
$24,000
Administration(Board/Admin/Bookkeeping Services
$36,500
Vendor/Contractor Services
$110,000
Outreach
$43,250
Total Expenses
$223,000
10-3
Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach
Restaurant Association Business Improvement District, Levy Assessments in
FY 2019-20, and Fix the Time and Place of a Public Hearing
June 11, 2019
Page 4
Resolution of Intention
The Resolution of Intention (Attachment B) for the NBRA BID provides for the following:
The intention to renew the NBRA BID assessments 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 25, 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.
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 Revised Annual Report and Budget
Attachment B — Resolution No. 2019-47
10-4
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
10-5
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
10-6
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.
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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
10-7
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 $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
$35,000
Community Partner Events
$3,000
Event Marketing Expenses
$20,000
Event Operating Expenses
$1,000
Research
$5,500
Collateral Production Expenses
$2,000
Social Media
$1,400
Website Maintenance
Media Relations
Total Expenses
$1,000
$3,000
$223,000.00
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
I
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
In addition to the anticipated income from the levied assessments and late fees, the NBRA
BID's FY 2019-2020 budget estimates receiving $33,000 in special event fees.
Stakeholder Assessments
Carry Over Funds 2018-2019
Special Event Fees & Income
Total O
7. Accomplishments in Fiscal Year 2018-2019
JL
$170,000
$20,000
$33,000
ng Income $223,000.00
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.
• 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
NBRA BID 2019 Annual Report I Page 5 of 9
10-9
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.
• 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.
NBRA BID 2019 Annual Report I Page 6 of 9
10-10
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 13' 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.
• Through the partnership with Newport Beach & Company, the NBRA BID continued
providing a toll-free phone number and live concierge assistance to diners seeking
NBRA BID 2019 Annual Report I Page 7 of 9
10-11
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, the NBRA BID collected approximately $170,000 in stakeholder
assessments and approximately $19,950 in stakeholder assessment late fees. The City
contributed $40,000 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 $252,190 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
10-12
NEWPORT BwACH
RESTAURANT
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Operating Budget
July 1, 2019 — June 30, 2020
�r�EW�Rr
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c9crFOwN•r
EXPENSES
TOTAL
Stakeholder Assessments
$170,000
Carry Over funds from 2018-2019
$20,000
Special Event Fees & Income
$33,000
Total Income
$223,000
EXPENSES
TOTAL
Office Supplies
$950
Postage
$850
Bank/Merchant Fees I
$2,500
Membership Dues
$300
Governance Meeting Expenses I
$500
Independent Contractors
$30,000
Bloggers I
$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
$35,000
Community Partner Events
$3,000
Event Marketing Expenses
$20,000
Event Operating Expenses
$1,000
Research
$5,500
Collateral Production Expenses
$2,000
Social Media
$1,400
Website Maintenance
$1,000
Media Relations
$3,000
Total Expenses
$223,000.00
NBRA BID 2019 Annual Report I Page 9 of 9
10-13
ATTACHMENT B
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. 95-55, 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 June 11, 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
Catering company
$150
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Resolution No. 2019-47
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Businesses Exempt from the NBRA 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.
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 25, 2019, at
the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660.
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Resolution No. 2019-47
Page 3 of 4
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,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
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Resolution No. 2019-47
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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 11th day of June, 2019.
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
C
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A - Boundary Map
Diane B. Dixon
Mayor
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