HomeMy WebLinkAbout14 - Intention to Renew the CDMBID, Levy Assessments in FY 2020-21Q �EwPpRT
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<,FORN'P City Council Staff Report
June 9, 2020
Agenda Item No. 14
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
PHONE: 949-644-3028
TITLE: Resolution No. 2020-58: Resolution of Intention to Renew the Corona
del Mar Business Improvement District, Levy Assessments in
FY 2020-21 and Fix Time and Place of Public Hearing
ABSTRACT:
The Corona del Mar Business Improvement District (CdM BID) Advisory Board of
Directors (Board) has submitted the BID's annual report and budget for the City Council's
review and approval. The Board also submitted a letter requesting the renewal of the CdM
BID for fiscal year 2020-21 and thanking the City Council for considering $40,000 in
funding support to the BID due to the economic impact of the COVID-19 pandemic on
local businesses.
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 and/or modify the Corona del Mar Business Improvement District's Fiscal
Year 2019-20 Annual Report and its Proposed Fiscal Year 2020-21 Budget;
c) Direct staff to return to the City Council with the CdM BID's detailed plan and budget
for how $40,000 in COVID-19 economic relief funds will be utilized before the City of
Newport Beach releases the funds; and
d) Adopt Resolution No. 2020-58, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Corona del Mar Business
Improvement District and Levy Assessments for the Fiscal Year of July 1, 2020 to
June 30, 2021, and Fix the Time and Place of a Public Hearing for June 23, 2020.
14-1
Resolution No. 2020-X: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2020-21 and Fix Time and
Place of Public Hearing
June 9, 2020
Page 2
FUNDING REQUIREMENTS:
The City of Newport Beach (City) contracts with a vendor (the CdM BID pays for these
services) to collect the stakeholder assessments and remits the money directly to the
CdM BID's bank account. The monies are used for funding the BID's activities as
described in the annual report (Attachment A).
At the May 26, 2020 City Council meeting, the Ad Hoc Committee on Local Business
Advancement recommended providing the CdM BID with $40,000 for COVID-19
economic relief support. Once the City Council determines the CdM BID's COVID-19
relief spending plan is satisfactory, the allocation will be distributed to the CdM BID.
DISCUSSION:
The Corona del Mar Business Improvement District (CdM BID) was formed in
1997 (Ordinance 97-24) pursuant to the Parking and Business Improvement Area Law of
1989 (1989 Law), codified in the Streets and Highways Code Sections 36500 et seq. The
CdM BID was established for the purpose of financing activities and programs that benefit
the member businesses located and operating in the area. The CdM BID territory
encompasses the area generally located along East Coast Highway from Hazel Drive to
Avocado Avenue in Corona del Mar. A boundary map is attached to the Resolution of
Intention (Attachment C).
The CdM BID is nearing the end of its FY 2019-20 operating period and the Board, which
serves in an advisory capacity to the City Council, has requested renewal of the BID for
FY 2020-21. Pursuant to the 1989 Law, an annual report must be prepared and filed with
the City Council and a public hearing must be held prior to the BID's renewal. If the City
Council adopts the Resolution of Intention, the public hearing will be held on June 23.
The CdM BID Board has prepared and submitted the attached annual report for the City
Council's review and approval. The report includes a summary of the CdM BID's FY 2019-
20 accomplishments and revenues, as well as its proposed activities and budget for the
upcoming fiscal year. In addition, the CdM BID Board met on May 28 and recommended
that its chair submit a letter to the City Council requesting the BID's renewal and thanking
the City Council for considering $40,000 in COVID-19 Economic Relief Funding for the
BID (Attachment B).
To meet the requirements for the City Council's offer for COVID-19 economic relief
funding, the BID will be focusing its efforts on the Shop & Dine Local media campaign
and developing new strategic components to promote economic growth during the
"reopening" of the business district. New marketing ideas include forums regarding safe
business re -opening and surveying the needs of the business members to see if the BID
should provide protective equipment, guidance compliance posters or social distancing
floor decals to the stakeholders, and district -wide promotional campaigns to further drive
business to the district.
14-2
Resolution No. 2020-X: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2020-21 and Fix Time and
Place of Public Hearing
June 9, 2020
Page 3
The Board will continue to enhance its digital and media relations to maintain and develop
new marketing collateral to attract customers to the business district. Due to the financial
challenges small businesses currently face, at its May 28 meeting, the BID Board voted
to reduce certain member assessments for FY 2020-21. The current assessment rate for
most members is 150 percent of the business license fee and the proposed assessment
for FY 2020-21 is 70 percent of the business license fee. The assessment rates are
summarized on page 5 of this report.
Staff believes these proposed activities support the Council's desire to have COVID-19
relief funds provided by the City utilized to facilitate the reopening and recovery of BID
member businesses and/or used to offset revenue losses resulting from a temporary
decrease in assessments. However, it is staff's understanding that the Council wants to
see a plan and budget that details the specific activities the CdM BID will accomplish with
$40,000 in COVID-19 relief funds. Therefore, staff is recommending that the City Council
direct staff to return with the CdM BID's detailed plan for Council review and approval
before the monies are distributed to the CdM BID.
Fiscal Year 2019-20 Accomplishments
The CdM BID Board continued making progress on the priorities identified in its Vision
2020 plan. Specific focus areas include its ongoing marketing, outreach and
communication efforts, and regular community support programs and improvement
projects. Board members have been working on several projects, which are consistent
with the BID's efforts to revitalize the business district and support the economic growth
of its member businesses. Highlights of projects from FY 2019-20 are listed below.
1. Parking and Transportation Improvements. A parking study to address potential
solutions to improve parking within the Corona del Mar Business District and adjacent
residential areas was completed. The Board worked with the City for the successful
implementation of increased parking time limits on East Coast Highway. The Board
continues to work toward the implementation of the study's remaining two
recommendations:
a. Incorporate the underutilized private parking supply for public use; and
b. Lower the City's parking requirements in the business district.
2. East Coast Highway Improvements. The CdM BID Board continued to work on the
appearance of the business district through various physical improvement projects
including ordering new light pole banners promoting the district, coordinating the
replacement of the aging dolphin topiaries, maintaining the tree -wells landscaping,
and brainstorming enhancements for the business district entryways.
3. "Shop Local" Marketing Campaign. The BID's "Shop Local" marketing campaign is
an on-going, coordinated effort with the Corona del Mar Chamber of Commerce. The
campaign's branded design theme has been used strategically throughout the year to
promote the business district. It will continue to be used in the immediate future to
encourage more local business during these tough economic times.
14-3
Resolution No. 2020-X: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2020-21 and Fix Time and
Place of Public Hearing
June 9, 2020
Page 4
The remainder of the FY 2019-20 activities listed in the annual report include the ongoing
and regular efforts of the CdM BID for general maintenance of the East Coast Highway,
coordinating and maintaining the annual holiday decor, recognizing businesses through
the Business Beautification Award Program, and the marketing outreach efforts for events
and activities that occurred within the CdM BID boundaries.
FY 2019-20 Operating Results
The estimated year-end operating budget for the CdM BID's FY 2019-20 is summarized
in the table below.
Estimated FY 2019-20 Year -End Operating Budget (Updated Figures)
$40,000
$2,000
Income (City Funding, Assessments and Late Fees
$91,937
Fund Balance Retained Earnings from FY 2018-19
$99,629
Total Income and Fund Balance
$191,566
Total Expenditures
$132,343
Fund Balance Retained Earnings)
$59,223
Proposed Budget for FY 2020-21
The proposed operating budget for FY 2020-21 is attached to the CdM BID's annual
report for the City Council's approval. The Board has identified several project goals for
the year and allocated its funding accordingly, as summarized in the table below.
Income _
Proposed COVID-19 Relief Funding (City's Contribution)*
Late Fees
$40,000
$2,000
Member Assessment
$55,000
Retained Earnings from FY 2019-20
$59,223
Total Income
$156,223
Expenses
Highway Decor and Banner Program
$30,792
Marketing and Administration Services
$102,550
Accounting and Bookkeeping Service
$21,408
Improvements & Parking
$1,473
Total Expenses
$156,223
*This income is proposed as it has not yet been approved for distribution by the City Council.
Should the City Council not approve the relief funding, the budget would be adjusted accordingly.
BID Member Benefits
The CdM BID has a unique and long-standing partnership with the Corona del Mar
Chamber of Commerce (Chamber), a voluntary membership organization located within
the business district. Through a City agreement, the Chamber has provided the CdM BID
with administration and marketing services, coordination of programs and member
communications, and assists with agenda preparation and reporting. BID funds are used
to pay for these services.
14-4
Resolution No. 2020-X: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2020-21 and Fix Time and
Place of Public Hearing
June 9, 2020
Page 5
The marketing campaigns for the business district and the production of the CdM
Business Directory are a joint effort between the BID and the CdM Chamber. The BID
also financially supports various Chamber programs and events, and finances the
decorative banners that promote Chamber events in the business district.
The coordinated marketing efforts support the CdM BID members by attracting local and
regional visitors to the area to shop in the retail establishments, dine from a large selection
of restaurants and cafes, and obtain a variety of professional services.
Resolution of Intention
The Resolution of Intention (Attachment C) for the CdM BID provides for the following:
Renews the CdM BID for fiscal year 2020-21 with assessment levies as follows:
o $500 per year for banks and financial institutions that are exempt from City
business license regulations;
o $250 per year for insurance agencies that are exempt from City business
license regulations;
o $0 per year for independent contractors (hair stylists, nail technicians and
real estate agents) operating in an establishment owned by another person;
and
0 70 percent of the annual business license tax for all other businesses.
Explains the improvements and activities to be funded are:
o Marketing, advertising, and public relations;
o Public area improvements and maintenance programs;
o Promotion of public events in the area;
o Promotion of retail trade activities; and
o Administration.
Sets the public hearing for June 23, 2020 at 7 p.m.
Per the 1989 Law, the City Council may revise, change, reduce or modify the assessment
or the type or types of improvements and activities proposed to be funded.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
14-5
Resolution No. 2020-X: Resolution of Intention to Renew the Corona del Mar Business
Improvement District, Levy Assessments in FY 2020-21 and Fix Time and
Place of Public Hearing
June 9, 2020
Page 6
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — CdM BID Annual Report and Budget
Attachment B — Letter from the CdM BID Board Chair
Attachment C — Resolution No. 2020-58
14-6
ATTACHMENT A
�pCtip DFL Corona del Mar Business Improvement District
9 7� ANNUAL REPORT
Year -End Report for FY 2019-20 & Proposed
Improvements and Activities for FY 2020-21
This is the 24th annual report for the Corona del Mar Business Improvement District
(CdM BID), as required by Section 36533 of the California Streets and Highways Code.
1. Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries.
2. Improvements and Activities for the Fiscal Year of July 1, 2020 to June 30, 2021.
A. VISION PLAN — MARKETING AND MEMBER BENEFITS
2.1 Marketing and Media Campaigns
The Board launched the ongoing "Shop & Dine Local" marketing campaign in a coordinated
effort with the CdM Chamber of Commerce in FY 2017-18. This campaign involves a variety
of marketing and media components to assist the business district's retailers and
restaurants. The most recent phase of the Shop Local program includes a new coordinated
design theme to be used strategically throughout the business district's marketing, such as
street light banners, direct mail pieces, digital/print advertisements, events and more. Given
the COVID-19 pandemic and its impact on businesses, the BID will prioritize marketing the
CdM business district in an effort to assist in the economic and financial recovery of the
small businesses. The BID's FY 2020-21 proposed budget includes increased funding to
continue the rebranding of the Shop & Dine Local campaign and to provide for additional
campaign components once businesses are allowed to safely reopen and throughout the
upcoming fiscal year. The Board will maintain the existing annual marketing programs and
develop new strategic components to promote economic growth during the "reopening" of
the business district. New marketing ideas include forums regarding business re -opening
and surveying the needs of the business members to see if the BID should provide
protective equipment, guidance compliance posters or social distancing floor decals to the
stakeholders. The Board will continue to enhance its digital and media relations to maintain
and develop new marketing collateral to drive more customers to the business district.
2.2 Website and Communications
The BID's interactive webpage offers enhanced features to improve communications with
and services for its members. The webpage includes a business directory feature to aide in
marketing BID members to the public, as well as the ability for members to pay their
assessments online. Other additional features include the new releases, events promotion
and meeting postings with an integrated connection to the BID's social media platforms. The
Board will continue to maintain, update and keep optimization current for enhanced member
marketing, communications and information sharing. The BID will also continue to
communicate guidance regarding business reopening and any district -wide promotional
campaigns to further encourage the economic recovery of the businesses.
2.3 CdM BID Member Directory, Window Decals and Informational Brochures
The BID's FY 2020-21 proposed budget includes funding to continue to co -produce and co -
publish the annual Corona del Mar Business Directory (Directory) with the CdM Chamber of
Commerce. The directory lists and markets CdM BID members in a colorful print publication
that encourages shopping local. The directory is mailed to 10,000 households in Corona del
CdM BID FY 2020-21 Annual Report I Page 1 14-7
Mar and distributed in the surrounding areas. The BID's Annual Vision Plan brochures listing
the BID's recent accomplishments and future goals will be updated and distributed with the
annual member assessment mailings in September and throughout the year. The Board will
continue to mail members who have paid their assessments a membership decal signifying
they are members in good standing.
2.4 Street Light Banner Program
The BID's FY 2020-21 proposed budget includes funding for the rotating street light banner
program, which highlights the Shop & Dine Local Campaign, annual CdM signature
community events (CdM Scenic 5K and CdM Christmas Walk), as well as the festive
banners promoting the holiday shopping and dining season. The Board will continue to work
with Dekra-Lite and City staff on permits, schedules and installation and removal of the
banners. The street light banner program continues to provide the Business District a sense
of community spirit, pride and promotion year-round.
2.5 Marketing Consulting and Reporting
The BID's FY 2020-21 proposed budget has funding allocated to continue the marketing
consulting contract to formulate, coordinate and administer the BID's marketing efforts and
provide routine reports to the Board on the results of the marketing activities.
2.6 East Coast Highway Dolphin Topiary Decor Program
The BID's FY 2020-21 proposed budget includes minimal funding to coordinate the festive
seasonal decorations of the dolphin topiaries at the intersection of Marguerite Avenue and
East Coast Highway. Due to the recent planting of new dolphins, decor on the topiaries for
calendar year 2020 has been canceled. However, once the topiaries have grown their roots,
the holiday decoration will resume.
2.7 Christmas Walk
The BID would like to continue contributing funds from the proposed FY 2020-21 budget to
the CdM Chamber of Commerce, to help sponsor the annual Christmas Walk event,
should it take place in 2020. This annual event successfully stimulates the economic
climate of the Business District and provides a promotional platform for all businesses
within the BID boundaries, allowing participants to get a head start on their holiday
shopping while enjoying their walk around Corona del Mar.
B. VISION 2020 —OUTREACH
2.8 Outreach Materials and Mailings
Programs, collateral and BID announcements will be available, displayed and
communicated through the CdM Chamber of Commerce, the CdM Residents Association
and at other appropriate community events once they resume. The Board shall continue to
communicate with the community through participating in various monthly and annual
events.
2.9 Annual Town Meeting
The Board will continue to co -host the Annual Town Hall Meeting for Corona del Mar with the
CdM Residents Association and CdM Chamber and coordinate a "State of the Business
District Address" to its members. The meeting serves as an outreach platform and community
gathering for BID members and local community members. This Annual Town Meeting also
typically serves as the BID's annual meeting for its stakeholders, however due to the COVID-
19 pandemic, the BID's annual meeting for FY 2019-20 was held via conference call,
independent of the canceled co -hosted town meeting. Stakeholders were notified of the
CdM BID FY 2020-21 Annual Report I Page 2 14-8
meeting via email and were encouraged to participate by submitting public comment via
email or in person at the community room. If the co -hosted Annual Town Hall Meeting is
rescheduled, the BID will participate.
2.10 Business Beautification Award Program
The FY 2020-21 BID proposed budget includes funding to continue to pay for and manage
the Business Beautification Award Program. The program identifies member businesses that
have renovated, remodeled or enhanced the storefront aesthetics, which contributes to the
overall CdM Vision Plan. Recipients of the award receive media attention and an award at a
community event.
C. VISION 2020 — REVITALIZATION IMPROVEMENTS AND MAINTENANCE
The following are revitalization project improvements and maintenance programs planned
for the CdM BID for the fiscal year (FY) 2020-21. These programs and related expenditures
are consistent with the BID's Vision Plan.
2.11 Parking & Transportation Improvements
The BID Advisory Board of Directors (Board) concluded a parking study performed by
Walker Consultants during FY 2018-19. The Board has put forth a concentrated effort on
the study's findings and has successfully worked with the City this past year to change the
street parking time limit on Pacific Coast Highway in the business district from one hour to
two hours, easing the burden on business owners and their patrons. The BID is continuing
to work with City staff on implementation of other potential solutions to improve parking
within the Corona del Mar Business District and adjacent residential areas. The Board
continues to work with the City, property owners and residents on the two remaining items
recommended for implementation:
1) Incorporating underutilized private parking supply in the public parking supply.
2) Lowering parking requirements in the business district.
2.12 Business District Holiday Decor Program
The BID's FY 2020-21 proposed budget provides for the annual installation and maintenance
of the median holiday decorations within the Business District. The holiday decor program is
provided through a City agreement with Dekra-Lite. The Board will continue to work with the
contract vendor and City staff on the annual permits, lighting and maintenance, as well as
the decoration installation and breakdown schedules.
D. VISION 2020 — BID ADMINISTRATION
2.13 Administrative Consulting and Reporting
The BID's FY 2020-21 proposed budget provides funding for the administrative consulting
contract. The services include providing support to formulate, coordinate and administer the
BID and report to the Board routinely on the results and issues that may arise. Activities
include preparing and coordinating agendas, memos, communications and/or reports. Other
duties include serving as a liaison with City staff and keeping the Board programs on track.
2.14 Financial Reporting, Bookkeeping and Billing Services
The BID's FY 2020-21 proposed budget includes funding for its bookkeeping services.
Bookkeeping services consist of coordinating the member assessment billing, managing the
accounts receivable and payable, preparation of the monthly financial reports and
providing financial reporting to City staff and the BID Board.
CdM BID FY 2020-21 Annual Report I Page 3 14-9
3. Estimated Cost of Improvements & Activities for FY 2020-21
Marketing and Administration $ 102,550
Accounting and Bookkeeping $ 21,408
Holiday Decor and Street Light Banner Program $ 30,792
Improvements $ 1,473
TOTAL $ 156,223
CdM Vision Plan Revisions
The Board continues to re-evaluate and update the CdM Vision Plan on an as -needed basis.
Working group meetings and workshops to develop new objectives will continue in FY 2020-
21 and the findings will be shared with BID and community members.
4. Method and Basis of Levying the Assessment
Member assessments are collected in one installment. The CdM BID Board voted to reduce
assessments this coming fiscal year in an effort to provide financial relief to their
stakeholders. The CdM BID Board voted to lower the assessment to the following:
The assessment shall be equal to 70 percent of the City's annual business license fee as
established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent
payments shall be equal to that established for delinquent business license fees pursuant to
Chapter 5.04 of the Municipal Code, providing that the penalty amount added shall in no
event exceed 50 percent of the assessment amount due. Banks and financial institutions
that are exempt from City business license regulations shall be assessed $500 per year.
Insurance agencies that are exemptfrom City business license regulations shall be assessed
$250 per year. Persons operating in one of the following types of businesses, as an
independent contractor in an establishment owned by another person shall be exempt from
this assessment: 1) Hair stylists; 2) Nail technicians; and 3) Real estate agents.
Assessments shall be collected in one annual installment at the beginning of the fiscal year,
and shall be pro -rated for new businesses that open during the fiscal year. The Board has
asked the assessment billing to be sent out in September 2020.
5. Surplus Carryover from Fiscal Year 2019-20
It is estimated that approximately $59,223 will be carried over from FY 2019-20 to FY 2020-
21 due to projects that did not come to fruition due to the COVID-19 crisis. These projects
have been postponed until the business district has been able to economically recover from
the effects of COVID-19.
6. Sources of Contributions from Other Than Levy
In addition to the annual BID assessments, the CdM BID's FY 2020-21 proposed budget
includes the City's consideration to contribute $40,000 to the BID's COVID-19 recovery
efforts.
CdM BID FY 2020-21 Annual Report I Page 4 14-10
7. Prior Year Accomplishments
FY 2019-20 was successful for the CdM BID. The Board successfully completed projects
and programs, maintained existing programs and developed new projects within the CdM
Business District as reflected in the estimated FY end expenses as shown below:
Fiscal Year 2019-20 Projects and Programs Budget Allocation*
Improvement Projects
Purchase of three wayfinding kiosks set in strategic locations and the purchase
of new wayfinding signs to better direct pedestrian and traffic patrons within the
district.
Holiday Decor and Street Light Banner Program
Contracted service for installation, removal and storage & purchase of new
"Explore CdM" Shop Local Banners.
Streetscape/Maintenance
Refurbishment and powder coating of trash cans & lids
Landscaping
Contracted Services for Tree -well landscaping maintenance
Website Management & Communications
Contracted service for management, maintenance, hosting, technical support
and marketing.
Marketing, Administration and Outreach
Contracted service for providing the Shop Local marketing campaign, BID
brochures, CdM Business Directory, dolphin topiary program, beautification
program, Christmas Walk sponsorship, membership decals, annual meeting,
mailings, storage and
physical office facilities, administration, agendas, reports and communications
Administration and Accounting
Contracted services for billing, financial reporting, bookkeeping, mailings
*Estimated fiscal -year end: TOTAL
Some of the improvements projects did not come to fruition in
FY 2019-20 due to the COVID-19 crisis. Approximately $59,223
from this budget is to be carried over to FY 2020-21.
$ 45,000
$
31,052
$
6,573
$
4,061
$
8,774
$
57,561
$
24,323
$
177,344
CdM BID FY 2020-21 Annual Report I Page 5 14-11
Corona del Mar Business Improvement
District Proposed Operating Budget
Fiscal Year July 1, 2020 thru June 30, 2021
Ordinary Income Expense Budget
Income
City's COVID-19 Contribution 40,000
Late Fees 2,000
Member Assessments (Assessment rates lowered for FY 55,000
2020-21)
Total Income 97,000
Expense
Marketing and Administration 102,550
Accounting and Bookkeeping 21,408
Holiday Decor and Street Light Banner Program 30,792
Improvements 1,473
TOTAL 156,223
Net Ordinary Income
Other Income Expense (*Carry Over)
*Carry Over from continued projects in process
Net Income
(59,223)
59,223
0
14-12
Advisory Board
Bernie Svalstad
Chairperson
Scott Laidlaw
Vice Chair
Keith Dawson
Treasurer
Jasmin Mortazavi
Secretary
Ernie Caponera
Director
Edward Hanley
Director
Hamid Kianipur
Director
Scott LaFleur
Director
Shawn Lim
Director
CDM BID
Financial Reporting
Community Business
Solutions
(949) 200-9851
Marketing &
Administration
Corona del Mar
Chamber of
Commerce
(949) 673-4050
ATTACHMENT B
Corona del Mar
BUSINESS IMPROVEMENT DISTRICT /City of Newport Beach
May 28, 2020
Dear Newport Beach City Council,
RE: Request for City Funding Support for the CdM BID
On behalf of the Advisory Board of Directors for the Corona del Mar Business
Improvement District (CdM BID), I would like to thank the City Council for its
support of the CdM BID over the past 23 years.
As we look forward to dedicating our time and efforts towards the BID's FY 2020-
2021 goals and priorities, the Board is submitting our Annual Report and Budget
for the BID's Renewal for FY 2020-2021.
At this time, we would like to also thank the City Council for their considering a
funding contribution of $40,000 to assist us with our COVID-19 business recovery
efforts. In addition to helping us offset the cost of the member assessments for this year,
this monetary contribution will greatly aide in our efforts to help the businesses reopen
safely and market their open storefronts to the community.
On behalf of the CdM BID, we greatly appreciate the City Council's support of
the BID and we look forward to assisting the Corona del Mar Business District
financially recover from effects of the COVID-19 pandemic.
Thank you in advance.
.%Yevcie Saabfad
Bernie Svalstad, Chairman
Corona del Mar Business Improvement District
RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID
www.CdMVillage.com Focebook/CdM BID
14-13
ATTACHMENT C
RESOLUTION NO. 2020-58
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE CORONA DEL MAR
BUSINESS IMPROVEMENT DISTRICT AND LEVY
ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1,
2020 TO JUNE 30, 2021, AND FIX THE TIME AND PLACE
OF A PUBLIC HEARING
WHEREAS, the Corona del Mar Business Improvement District ("CdM BID") was
established in 1997 pursuant to the Parking and Business Improvement Area Law of
1989, California Streets and Highways Code, Sections 36500 etseq., (1989 Law"), which
requires an annual report to be filed and approved by the City Council for each fiscal year;
WHEREAS, the advisory board, known as the CdM BID Board of Directors, has
prepared an annual report for the 2019-2020 fiscal year which is on file in the City Clerk's
Office ("CdM BID Annual Report"); and
WHEREAS, on June 9, 2020, the CdM BID Annual Report was filed with and
approved by the City Council.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby declares its intention to renew the CdM BID
for fiscal year July 1, 2020 to June 30, 2021, pursuant to the 1989 Law.
Section 2: The City Council hereby declares its intention to levy assessments
for the CdM BID for the fiscal year July 1, 2020 to June 30, 2021, pursuant to the 1989
Law. Such benefit assessment shall be as follows:
A. Banks and financial institutions that are exempt from City business license
regulations shall be assessed Five Hundred Dollars ($500) per year.
B. Insurance agencies that are exempt from City business license regulations
shall be assessed Two Hundred Fifty Dollars ($250) per year.
C. Persons operating one of the following types of businesses as an
independent contractor in an establishment owned by another person shall be exempt
from this assessment:
14-14
Resolution No. 2020 -
Page 2 of 4
1. Hair stylists;
2. Nail technicians; and
3. Real estate agents.
D. The assessment for all other businesses within the CdM BID shall be seventy
percent (70%) of the annual business license tax as established pursuant to Chapter 5.08
of the Newport Beach Municipal Code.
Section 3: 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 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 CdM BID's fiscal year.
Section 5: The improvements and activities to be funded by the benefit
assessments shall include only the following:
A. Marketing, advertising, and public relations;
B. Public area improvements and maintenance programs;
C. Promotion of public events that are to take place on or in any public places
in the area;
D. General promotion of retail trade activities; and
E. Administration.
The implementation of these actions is described in the CdM BID Annual Report, which
is on file with the City Clerk's Office located at 100 Civic Center Drive, Bay 2E, Newport
Beach, CA 92660. Given the Declaration of a State Emergency and Proclamation of
Local Emergency related to COVID 19, City Hall may be closed, so a copy of the report
has been posted online on the City Clerk's website
https://www.newportbeachca.gov/government/departments/city-clerk, and the City Clerk
will provide a copy to any interested person. Please contact the City Clerk at 949-644-
3005 or cityclerk@newportbeachca.gov if you would like to receive a copy of the report.
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Resolution No. 2020 -
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Section 6: The location of the CdM BID will remain the same: Generally located
on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater
specificity in the map attached as Exhibit A, and incorporated herein by reference.
Section 7: The time and place for a public hearing on the CdM BID renewal is
set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 23, 2020, at
the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660.
Given the Declaration of a State Emergency and Proclamation of Local Emergency
related to COVID 19, this meeting may occur telephonically. Anyone wishing to attend the
public hearing should check the June 23, 2020, meeting agenda on the City's webpage
at newportbeachca.gov/agendas or contact the City Clerk at 949-644-3005 or
cityclerk@newportbeachca.gov, during normal business hours, to receive information on
how to attend this meeting.
Section 8: During the public hearing, the City Council shall hear and consider
all protests against the establishment area, or the furnishing of specified types of
improvements or activities within the area. Protests may be made orally or in writing, but
if written shall be filed with the City Clerk at or before the time fixed for the hearing and
contain sufficient documentation to verify business ownership and validate the particular
protest. If written protests are received by the owners of the businesses within the CdM
BID which pay fifty percent (50%) or more of the total assessments to be levied, no further
proceedings to renew the CdM BID shall be taken for a period of one year from the date
of the finding of a majority protest by the City Council. If the majority protest is only against
the furnishing of a specific type or types of improvements or activity or benefit within the
CdM BID, those types of improvements or activities or benefit zones shall be eliminated.
Given the Declaration of a State Emergency and Proclamation of Local Emergency
related to COVID 19, this meeting may occur telephonically; however, written protests
may be emailed to the City Clerk at or before the time fixed for the hearing at
cityclerk@newportbeachca.gov.
Section 9: Further information regarding the proposed CdM BID renewal may
be obtained at the City Clerk's Office, 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660, (949-644-3005 or cityclerk@newportbeachca.gov).
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.
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Resolution No. 2020 -
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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.
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 9th day of June, 2020.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Aaron C. Harp
City Attorney
Attachment(s): Exhibit A (Boundary Map)
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