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Home My WebLink About05 - Amending the Scope of the BID Ad Hoc and Changing the Name to the Ad Hoc Committee on Local Business AdvancementPORT CITY OF O � _ i NEWPORT BEACH City Council Staff Report <i FO RN July 23, 2019 Agenda Item No. 5 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((2)-newportbeachca.gov PHONE: 949-644-3028 TITLE: Resolution No. 2019-71: Amending the Scope of the Business Improvement District Ad Hoc Committee and Changing the Name to the Ad Hoc Committee on Local Business Advancement ABSTRACT: On June 11, 2019, the City Council adopted Resolution No. 2019-53, which created an Ad Hoc Committee on Business Improvement Districts. After the initial Ad Hoc Committee meeting and the Council's June 25, 2019 action reducing funding support for two merchant associations, the Committee requests an amendment to its scope to include reviewing the merchant associations and how the City provides support for local business groups. 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; and b) Adopt Resolution No. 2019-71, A Resolution of the City Council of the City of Newport Beach, California, Amending the Scope of the Ad Hoc Committee on Business Improvement Districts and Changing the Name of the Committee to the Ad Hoc Committee on Local Business Advancement. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: Mayor Diane Dixon, Council Member Joy Brenner, and Council Member Jeff Herdman were appointed to the Ad Hoc Committee on Business Improvement Districts (Committee) on July 11, 2019, per City Council's adoption of Resolution No. 2019-53. 5-1 Resolution No. 2019-71: Amending the Scope of the Business Improvement District Ad Hoc Committee and Changing the Name to the Ad Hoc Committee on Local Business Advancement July 23, 2019 Page 2 The committee members met with City staff to begin discussions on the City's two 1989 Law Business Improvement Districts (BIDs), the Corona del Mar BID and the Newport Beach Restaurant Association BID, and how they align with City Council priorities. In the time between the creation of the committee and its first meeting, City staff received funding requests from the Balboa Village Merchant Association, Inc. (BVMA) and Balboa Island Marketing, Inc. (BIMI). The businesses in these areas were previously part of the Balboa Village BID and the Marine Avenue BID, which were formed under the City as 1989 Law BIDs. The City Council approved disestablishment of these BIDs on May 28, 2013. Thereafter, the local business owners in Balboa Village and on Balboa Island banded together to form non-profit merchant associations. A condition of the approved disestablishment included City funding support of $40,000 to each of the newly formed merchant associations for five years. This agreement has since expired. On June 25, 2019, City staff presented the merchant associations' requests for continued funding to the City Council for consideration. During the meeting, the City Council approved a reduction in funding support from $40,000 to $20,000 per merchant association and noted that the members should do more to find alternative funding. In addition, the City Council expressed interest in further discussing the City's support of the merchants associations. In consideration of the City Council's actions and comments on June 25, the Committee requests an increase in its scope to include a review of the merchant associations and how the City provides funding in support of local businesses. Reviewing the BIDs and the merchant associations together provides a holistic picture of the City's role in supporting businesses in Newport Beach. The Committee also requests that its name be changed to the Ad Hoc Committee on Local Business Advancement to reflect its new scope. 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). ATTACHMENT: Attachment A — Resolution No. 2019-71 5-2 ATTACHMENT A RESOLUTION NO. 2019-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE SCOPE OF THE AD HOC COMMITTEE ON BUSINESS IMPROVEMENT DISTRICTS AND CHANGING THE NAME OF THE COMMITTEE TO THE AD HOC COMMITTEE ON LOCAL BUSINESS ADVANCEMENT WHEREAS, a Business Improvement District is a program of a city under which a city may levy an assessment against businesses or properties to fund services or improvements that benefit such assessed businesses or properties; WHEREAS, the City of Newport Beach ("City") established the Newport Beach Restaurant Association Business Improvement District ("NBRA BID") in 1995 by Ordinance No. 95-55, pursuant to the Parking and Business Improvement Area Law of 1989, California States and Highways Codes, Section 36500 et seq., (1989 Law"); WHEREAS, the City established the Corona del Mar Business Improvement District ("CdM BID") in 1997 by Ordinance No. 97-24, also pursuant to the 1989 Law; WHEREAS, at a City Council meeting on May 28, 2019, the City Council was presented with a recommendation from staff to renew the levy assessments for both the NBRA BID and CdM BID (collectively referred to herein as "BIDS") for the fiscal year of July 1, 2019 to June 30, 2020, and to approve a commitment of $40,000.00 in City funding support for each of the BIDS; however, the City Council continued the items to the June 11, 2019 City Council Meeting to deliberate further; and WHEREAS, at a City Council meeting on June 11, 2019, the City Council created an Ad Hoc Committee on Business Improvement Districts ("Committee"), comprised of three (3) Council Members, to review and determine whether the BIDS are aligned with the City Council's priorities, including the City's funding support of same, and to make a recommendation to the entire City Council in regards thereto; WHEREAS, following the adoption of Resolution No. 2019-53, which established the newly formed Committee, City staff received funding requests from two merchant associations, the Balboa Village Merchant Association, Inc., and the Balboa Island Marketing, Inc., which were presented at a City Council Meeting on June 25, 2019, where the City Council agreed to reduce its funding support for such merchant associations; 5-3 Resolution 2019 - Page 2 of 3 WHEREAS, the City Council hereby desires to amend the scope of the Ad Hoc Committee on Business Improvement Districts to review and determine whether the funding support of merchant associations is aligned with the City Council's priorities and if there should be a change in the City's support of the NBRA BID, CdM BID, merchant associations or other businesses; and WHEREAS, the City Council hereby desires to change the name of the committee to the Ad Hoc Committee on Local Business Advancement to reflect the revised purpose and responsibilities. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The name of the Ad Hoc Committee on Business Improvement Districts created by Resolution 2019-53 ("BID Committee") shall be changed to the Ad Hoc Committee on Local Business Advancement ("Committee"). All Council Members previously appointed to the BID Committee shall remain members of the Committee. Section 2: The limited purpose and responsibility of the Committee shall be to review and determine whether the NBRA BID, CdM BID, and merchant associations, including City's funding support of same, are aligned with the City Council's priorities, and make a recommendation to the entire City Council in regards thereto. If the recommendation of the Committee is to change the City's funding support of the NBRA BID, CdM BID, or merchant associations, the Committee shall also make a recommendation as to whether the City should provide funding support to local business groups in some other manner. Section 2: The Committee shall be an advisory committee and shall expire upon making recommendation (s) to the entire City Council or December 31, 2019, whichever occurs first. Section 3: The Committee shall not be subject to the Brown Act; however, the recommendations) of the Committee shall be considered at a noticed and public meeting by the entire City Council. 5-4 Resolution 2019 - Page 3 of 3 Section 4: 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 5: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 6: 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. Section 7: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 23rd day of July, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE _, Aaron C. Harp City Attorney 5-5