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HomeMy WebLinkAbout15 - Intention to Renew the NBRABID, Levy Assessments in FY 2020-21Q �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report June 9, 2020 Agenda Item No. 15 TO: HONORABLE MAYOR AND 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. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place of Public Hearing ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA 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 NBRA 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 Newport Beach restaurants. 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 Newport Beach Restaurant Association 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 NBRA 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. 2020-59, 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, 2020 to June 30, 2021, and Fix the Time and Place of a Public Hearing for June 23, 2020. 15-1 Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association 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 NBRA BID pays for these services) to collect the stakeholder assessments and remit the money directly to the NBRA 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, and a straw vote of the Council indicated the majority favored, providing the NBRA BID with $40,000 for COVID-19 economic relief support. Once the City Council determines the NBRA BID's COVID-19 relief spending plan to be satisfactory, the allocation will be disbursed to the NBRA BID. 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 its member businesses. The NBRA BID membership encompasses any food -service business within the city boundaries, including restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies, and similar food -related business. A boundary map is attached to the Resolution of Intention (Attachment D). The NBRA 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, 2020. The NBRA BID Board prepared and submitted the annual report for the City Council's review and approval. The report includes a summary of the NBRA BID's FY 2019-20 accomplishments and revenues as well as its proposed activities and budget for the upcoming fiscal year. In addition, the NBRA BID Board met on May 27 and recommended that its president submit a letter to the City Council requesting the BID's renewal and thanking the City Council for considering allocating $40,000 in COVID-19 economic relief funding to the BID (Attachment B). To meet the requirements for the City Council's consideration of COVID-19 economic relief funding, the BID will focus its efforts on creating a comprehensive marketing campaign and promotions to further encourage dining in or ordering take-out. Phase one of their Restaurant Recovery Plan includes a Summer 2020 Restaurant Week promotion in July to help jump-start the financial recovery of the restaurants. The BID also plans to host stakeholder training, education and forums to assist restaurants with re -opening. 15-2 Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place of Public Hearing June 9, 2020 Page 3 Further, the NBRA BID Board voted at its May 27 meeting to reduce the member assessment rates by 25% for Fiscal Year 2020-21 and to postpone billing until October 2020 to help provide financial relief to the stakeholders. The BID Board hopes these efforts will allow the restaurants to take advantage of the busy summer season to pay off other outstanding debts before paying a reduced assessment to the BID. 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 also staff's understanding that the Council wants to see a detailed plan and budget that explains the specific activities the NBRA 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 NBRA BID's detailed plan for Council review and approval before the monies are distributed to the NBRA BID. Fiscal Year 2019-20 Accomplishments The NBRA BID Board used this fiscal year to focus on increasing market awareness, enhancing stakeholder benefits, elevating the BID's community profile, and ensuring financial and administrative effectiveness. Highlights of some of the activities from FY 2019-20 are listed below: 1. Restaurant Week. The 2020 Newport Beach Restaurant Week had a record number of stakeholder businesses participating (72 restaurants, including eight new restaurants). The event celebrated the 14th anniversary of Restaurant Week and resulted in a 19 -percent increase in revenue and an estimated $3.9 million in consumer spending, a 3 -percent increase year over year. The Newport Beach Restaurant Week launched its first year with a charity partner, Second Harvest Food Bank in Orange County, raising $4,090 in an effort to "Dine to Make a Difference." 2. Marketing. The NBRA BID provides strategic and comprehensive marketing programs to promote dining in Newport Beach. This year, 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 2019-20 activities are listed in the annual report. Fiscal Year 2019-20 Operating Results The estimated year-end operating budget for the NBRA BID's FY 2019-20 is reflected in the table below. -. Operating Budget Income (City Event Grant Funding, Assessments, Late Fees $184,787 Special Event Income (Restaurant Week) $39,299 Total Income and Fund Balance $224,086 Total Expenditures $216,964 End of Year Balance (Retained Earnings) $7,122 15-3 Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place of Public Hearing June 9, 2020 Page 4 In addition, the NBRA BID has set aside year-end balances since 2016 into a reserve. As of June 30, 2019, the NBRA had a reserve fund balance of $162,312. Proposed Budget for Fiscal Year 2020-21 The proposed operating budget for FY 2020-21 is attached to the NBRA BID's annual report for the City Council's approval and summarized in the table below. - ... - . • • - . .. - Income Proposed City Support Funding (COVID Recovery & Special Event Grant) * Restaurant Week Income $49,000 $25,000 Member Assessment (Projecting 60% income decrease due to COVID-19) $57,500 Retained Earnings from FY 2019-20 $7,122 Money from Reserve Account (carry-over from prior ears $70,000 Total Income $208,622 Expenses Operational Expenses $14,600 Event Expenses $54,122 Administration(Board/Admin/Bookkeeping Services $55,000 Vendor/Contractor Services $33,000 Outreach $51,900 Total Expenses $208,622 *This income is proposed as it has not been approved by the City Council, the $40,000 is the economic grant and the NBRA is asking for a $9,000 Special Events grant from the City, which will be considered separately. Should this funding not become available, the NBRA would revise its budget accordingly or take the balance from their reserves. The NBRA BID Board approved taking $70,000 from the BID's reserve account to use in the FY 2020-21 operating budget. This leaves a reserve fund balance of $90,000, which the NBRA BID would utilize if economic conditions worse. 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 2019-20 marketing highlights to show the value of the benefits received by the BID stakeholders (Attachment C). FY 2019-20 stakeholder highlights include the following: Website traffic reached over 270,525 unique visitors. Social media channel followers increased by 42 percent. 15-4 Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place of Public Hearing June 9, 2020 Page 5 • Videos achieved 113,447 views on social media platforms. • Email subscription database increased by 63 percent. • Email campaigns yielded over 162,000 impressions. Resolution of Intention The Resolution of Intention (Attachment D) for the NBRA BID provides for the following: Renews the NBRA BID for fiscal year 2020-21 with assessment levies as follows: o $450 for full -serve restaurants o $375 for fast -casual restaurants o $375 for grocery or markets o $112.50 for coffee, tea or specialty shops, dessert, bakery or treat shops, juice bar or smoothie shop, and catering companies. Explains the improvements and activities to be funded are: 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. Sets the public hearing for June 23 at 7 p.m. Per the 1989 Law, the City Council may revise, change, reduce or modify the assessment or the type(s) 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). 15-5 Resolution No. 2020-59: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2020-21 and Fix Time and Place of Public Hearing June 9, 2020 Page 6 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. 2020-59 15-6 ATTACHMENT A N -W PO RT BwACH RESTAURANT ° ASSOCIATION rr*4LrFO,yph NEWPORT BEACH RESTAURANT BUSINESS IMPROVEM ENT DISTRICT FISCAL YEAR 2019-20 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: There are no changes proposed to the district boundaries. MISSION, VISION, VALUES & 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 Top Foodservice issues identification • Clearinghouse set-up for diner charitable causes donations through Restaurant Week event • Targeted and measurable annual communications plan with appropriate messaging FINANCIAL RESOURCES & ADMINISTRATION • Updated rolling year strategic plan review • Aligned program of work and budget allocations NBRA BID 2020 Annual Report I Page 1 of 10 15-7 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. • Ensure a vibrant and financially healthy restaurant association and restaurant stakeholders through successful re -opening, recovery and economic prosperity campaigns, promotions and marketing. • Enhanced foodservice sector brand marketing • Increased communications of BID stakeholder benefits • Strengthened community partnerships with higher leveraged results • Stronger selective communitywide foodservices event involvement and promotion FY 2020-21 OBJECTIVES 1. Develop a COVID-19 Marketing Recovery Plan to promote Newport Beach restaurants and assist with reopening, economic and financial recovery efforts. 2. Promote Newport Beach stakeholder restaurants and showcase the local culinary community to increase diner frequency and generate stakeholder sales. 3. Grow awareness of the Dine Newport Beach brand and Newport Beach as a top culinary destination. 4. Foster the Newport Beach culinary community to increase stakeholder engagement, which will include new safety and health communications to restaurants as a response to the COVID-19 pandemic. 5. Leverage the Dine Newport Beach brand and assets to generate incremental revenue for increased program marketing and promotion. FY 2020-21 PRIORITY INITIATIVES The NBRA BID has identified and will work in Fiscal Year (FY) 2020-21 to implement and exceed current and long-term NBRA BID goals and objectives through key activities to realize its vision over the next year. Due to the effects of the COVID-19 pandemic on the restaurant community, much of the focus and strategy of the NBRA BID will be to assist restaurants and local dining businesses with comprehensive marketing campaigns, promotions and efforts to encourage dining in or take-out. Phase One of the Restaurant Recovery Plan will include a Summer 2020 Restaurant Week Recovery Promotion in July 2020. This promotion will be designed to drive business to local Newport Beach restaurants and food -service businesses. Additional promotions and campaigns will be added throughout the year to help local businesses during need period and slower seasons. Phase One also will include stakeholder training, education and networking opportunities to assist restaurants with re -opening in this new COVID-19 world. The NBRA BID, through its work this next year, will be all about recovery, revenue and driving business for its member stakeholders via the following marketing, digital, media relations, advertising, event marketing and other channels: NBRA BID 2020 Annual Report I Page 2 of 10 15-8 PRIORITY A: RESTAURANT MARKETING, PROMOTION & RECOVERY • Branding I Recovery Marketing Campaigns:: NBRA BID will deploy integrated online, print, radio, public relations and social media campaigns throughout the year during restaurant need periods to assist with recovery efforts. Website: The NBRA BID website, DineNB.com, will add relevant content, improved imagery, video, 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. Mobile -Friendly Website: 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. 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. Email Marketing: 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. Social Media: Trending culinary topics, images and video content on the existing social channels will drive followers and build online engagement. Media Relations: The NBRA BID will generate media coverage in print, digital and broadcast media togenerate earned -media exposure for NBRA, DineNB and all stakeholders. Advertising: Marketing campaigns with new creative messaging will generate consumer awareness and drive incremental diners to restaurants and culinary businesses. • Signature Events: The NBRA BID will produce annual Restaurant Week and new promotional events such as Restaurant Month to assist with recovery efforts. Promotional Materials: Marketing collateral will be created to promote DineNB.com and its comprehensive online dining guide. • Video Content: Produce video content in partnership with Newport Beach TV as well as Visit Newport Beach lifestyle digital channel to promote Newport Beach culinary experiences and all stakeholders. PRIORITY B: INDUSTRY & COMMUNITY RELATIONS • Industry & Community Relations: The NBRA BID will support organizations and events that assist in promoting the local restaurant and culinary community. • Concierge Service: The Visit Newport Beach, Inc. Visitors Center and Concierge Team, when re -opened, will assist with visitor culinary questions and guidance. • Stakeholder Communications: The NBRA BID will engage NBRA restaurants, partners and local stakeholders with email and occasional print communications. • Civic Event Participation: The NBRA BID will participate and contribute to a variety of local civic events. • Professional Relationships: The NBRA BID will maintain a variety of industry relationships and memberships with, but not limited to, Newport Beach & Company, California Restaurant Association and the Newport Beach Chamber of Commerce. NBRA BID 2020 Annual Report I Page 3 of 10 15-9 • Annual Meeting: The NBRA BID will hold its Annual Meeting in March 2021, 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. PRIORITY C: BID ADMINISTRATION & FINANCE • BID Marketing, Administration & Accounting: 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. Ma:IJ Office Supplies Postage Bank/Merchant Fees Membership Dues i111111111h • L $950 $850 I $2,500 I $300 Governance Meeting Expenses I $500 Independent Contractors I $25,000 Bloggers $8,000 Marketing Consultant Fees $30,000 BID Administration/Agency Fees $15,000 BID Accounting Services Fees $9,000 Advertising — Consumer $44,500 Community Partner Events $2,000 Event Marketing Expenses $45,000 Event Operating Expenses $7,122 Research $5,500 Collateral Production Expenses $4,000 Social Media $5,400 Website Maintenance $1,000 Media Relations $2,000 TOTAL EXPENSES $208,622 NBRA BID 2020 Annual Report I Page 4 of 10 15-10 The benefit assessments will be collected by the City or its designee in one installment in at the start of the fiscal year, and shall be pro -rated for new businesses that open during the year. For FY 2020-21, the NBRA BID Board directed the staff to reduce assessments by 25 percent to provide less of a financial burden on restaurants and small businesses during the economic recovery. In addition, the NBRA BID Board also directed their designee to postpone assessment billing until October 2020, instead of July 2020, to provide further financial relief. The benefit assessment will be levied upon persons conducting business within the Restaurant Association Business Improvement District as follows: •-Ft:V15us FY 2020-21 DISCOUNTEDANNUAL ASSESSMENT $450 j ASSESSMENT Full -Service Restaurant (e.g., with wait service $600 Fast Casual Eatery (e.g., order at the counter) $500 $375 Grocery or Market $500 $375 Coffee, Tea or Specialty Shop $150 $112.50 Dessert, Bakery or Treat Shop $150 $112.50 Juice Bar or Smoothie Shop Catering Company $150 $150 $112.50 $112.50 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. It is estimated that $7,122 will be carried over from the NBRA BID's FY 2019-20 budget. The NBRA BID will utilize $70,000 from the NBRA BID Reserve Account fund, accumulated carry-over from prior years, to provide economic relief to the restaurant stakeholders and the association during the COVID-19 pandemic. The reserve money will be used to cover a 25 -percent reduction in restaurant stakeholders assessments, in addition to any budget shortfalls that may occur in the short-term, due to a decrease in the amount of stakeholders, and in the long-term, a potential decrease in special event revenue. As of May 2020, NBRA BID's Reserve Account includes cash reserves totaling $160,000. This new budget proposes tapping into $70,000 of those reserves, leaving a reserve fund balance of $90,000, which could be utilized if economic conditions worsen. NBRA BID 2020 Annual Report I Page 5 of 10 15-11 In addition to the anticipated income from the levied assessments, late fees and carry-over, the NBRA BID's FY 2020-21 budget estimates utilizing $70,000 from BID Reserves, $25,000 in special event fees, $9,000 City of Newport Beach special event grant, plus the City of Newport Beach's COVID-19 Marketing Recovery Grant of $40,000 FY 2020-21 •TOTAL Stakeholder Assessments (Reflects 25% Discount in Assessment Fees) $127,500 Bad Debt from Assessment Deferrals & Restaurant Closures -$70,000 Reflects a 54% Assessment Collection Rate Reduction Funds from NBRA BID Reserve Account $70,000 (carry-over from prior years) Carry -Over Funds from FY 2019-20 $7,122 COVID-19 Marketing Recovery Support Contribution (City $40,000 Contribution) Special Event Fees & Income (Restaurant Week) $25,000 City of Newport Beach Special Event Grant Funds $9,000 TOTAL INCOME $208,122 FY 2019-20 was a successful year for the NBRA BID as it completed the following projects and initiatives: FY 2019-20 YEAR-ROUND RESULTS • 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 Season 2 "Weekly Bites" o Season 3 "Culinary Journeys" NBRA BID 2020 Annual Report I Page 6 of 10 15-12 • 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 2019 Summer Campaign — 52 Weeks of Dining 0 2020 Restaurant Week Campaign — Dine to Make A Difference 0 2020 Early Spring Campaign — Curbside/ Take out Delivery 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 LA Times o OC Guestbook o The Daily Pilot o Newport Beach Magazine o NB Indy o OC Weekly 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 Facebook o Google AdWords o Digital Display for both o TripAdvisor Mobile & Desktop viewing • The consumer eNewsletter boosted distribution 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, videos 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 55 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 "Dine to Make a Difference" which followed the media event. This event included 160 paid 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. • 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 NBRA BID 2020 Annual Report I Page 7 of 10 15-13 o Newport Beach Film Festival o Christmas Boat Parade o Pacific Food & Wine Classic FY 2019-20 RESTAURANT WEEK RESULTS • NBRA BID produced the 2020 Newport Beach Restaurant Week with a record-breaking 72 participating restaurants. The event celebrated the 14th anniversary of Restaurant Week marking "Dine to Make a Difference." The marketing and promotional efforts included: o Advertising – Print ads appeared in LOCALE OC. Digital ads appeared online through the Google Ad Network, Facebook, Instagram, Visit California, Los Angeles Times Digital Media, OC Greer, VisitNewportBeach.com, DineNB.com, YelpOC and OpenTable. Paid and in-kind advertising generated over 4.5 million impressions. o PR Campaign – Editorial content, blogger coverage, calendar listings and a reception to promote the event generated 75 articles, 60 digital/print placements; 15 broadcast media placements in Orange County, Los Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. 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 2 million consumers throughout the Los Angeles and Orange County regions. o 14th Annual Newport Beach Restaurant Week launched its first year with a charity partner, Second Harvest Food Bank in Orange County. Diners during Restaurant Week donated $4,090 Second Harvest—all through voluntary donations and media kick-off event ticket sales. o Results – OpenTable reported 90 -percent of NBRW consumers would recommend to a friend; and restaurants reported sales growth of 15 percent during Restaurant Week. There were over 226 million advertising and media impressions generated for the event. The overall event resulted in an estimated consumer spend of $3.9 million, which is an increase of three percent year over year. NBRA BID 2020 Annual Report I Page 8 of 10 15-14 FY 2019-20 COMMUNITY RELATIONS, FINANCE & ADMIN RESULTS • 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, Orange County Visitors Association, California Restaurant Association and the Newport Beach Chamber of Commerce. • The NBRA BID contracted (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 its 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 via Webex Video Conference in April (per the NBRA BID Bylaws), where they 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. During FY 2019-20, the NBRA BID collected approximately $175,013 in stakeholder assessments. The NBRA BID received $39,299 in participation fees for 2020 Newport Beach Restaurant Week, and a special event grant of $9,000 from the City in support of Newport Beach Restaurant Week. The total income for FY 2019-20 is expected to be approximately $224,086. By the end of FY 2019-20, the NBRA BID will have spent approximately $217,842 for approved activities, funded by the FY 2020-21 revenue. 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 2020 Annual Report I Page 9 of 10 15-15 NEWPORT BwACH RESTAURANT ASSOCIATION NEWPORT BEACH RESTAURANT BUSINESS IMPROVEMENT DISTRICT OPERATING BUDGET JULY 1, 2020 — JUNE 30, 2021 �r�EW�Rr v y.a x c9crFOwN•r INCOME• TOTALEXPENSES Stakeholder Assessments (Reflects 25% Discount in Assessment Fees) $127,500 Bad Debt from Assessment Deferrals & Restaurant Closures (Reflects a 54% Assessment Collection Rate Reduction) Funds from NBRA BID Reserve Account Carry-over From Prior Years) -$70,000 $70,000 Carry -Over Funds from FY 2019-20 $7,122 COVID-19 Marketing Recovery Support Contribution (City Grant) $40,000 Special Event Fees & Income (Winter Restaurant Week) $25,000 City of Newport Beach Special Event Grant Funds $9,000 TOTAL INCOME $208,622 NBRA BID 2020 Annual Report I Page 10 of 10 15-16 TOTALEXPENSES Office Supplies I $950 Postage $850 Bank/Merchant Fees I $2,500 Membership Dues $300 Governance Meeting Expenses $500 Independent Contractors $25,000 Bloggers $8,000 Marketing Consultant Fees $30,000 BID Administration/Agency Fees $15,000 BID Accounting Services Fees $9,000 Advertising — Consumer $44,500 Community Partner Events $2,000 Event Marketing Expenses $45,000 Event Operating Expenses $7,122 Research $5,500 Collateral Production Expenses $4,000 Social Media $5,400 Website Maintenance $1,000 Media Relations $2,000 TOTAL EXPENSES $208,622 NBRA BID 2020 Annual Report I Page 10 of 10 15-16 ATTACHMENT B NEWPORT BEACH RESTAURANT ASSOCIATION May 27, 2020 Newport Beach City Council 100 Civic Center Drive Newport Beach, CA 92660 Re: Gratitude for Continued Funding Support for NBRA BID Dear Mayor O'Neill and City Council Members, 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 25 years. Due to the COVID-19 pandemic and its drastic impact on Newport Beach restaurants, NBRA BID is forecasting an approximate 60 -percent reduction in assessment income due to assessment deferral requests and restaurant closures. To counter this potential loss of income, NBRA BID thanks you for offering $40,000 in COVID-19 Marketing Recovery support to offset lost assessment revenue and aide in much needed marketing support to restaurants during the recovery phase. We look forward to dedicating our time and effort toward the NBRA BID's FY 2020-2021 goals and priorities and to ensure a prosperous recovery for Newport Beach from the current crisis. On behalf of the NBRA BID, we greatly appreciate the City Council's support of 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. AZ�' arlos Godinez NBRA BID Board President General Manager, Tavern House Restaurant cc: Grace Leung, City Manager NBRA BID Board of Directors Gary Sherwin, Newport Beach & Company Tara Finnigan, Deputy City Manager Melanie Franceschini, City of Newport Beach 15-17 ATTACHMENT C 1 N=WPORT B=ACH NBRA BID MARKETING HIGHLIGHTS RESTAURANT FOR FISCAL YEAR 2019-20 ASSOCIATION 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 I III promoting Newport Beach, California, as a dining destination, offering innovative cuisine, fresh N_WPORT EACH fare, diverse experiences, and a variety of exceptional restaurants. RELATIONS)EARNED MEDIA (PUBLIC . MEDIA (ADVERTISING) • PR impressions reached over 144.4 million, an increase of 1,404 percent from the prior year. • Secured over 228 PR placements, an increase of 500 percent YOY. 0 Regional publications - Riviera Magazine, LA Times, Daily Pilot, Orange Coast Magazine, OC Register, Orange County Business Journal, Newport Beach Independent, Saute Magazine, Locale Magazine, Greer's OC, Pelican Hill Magazine. o National and International publications - New York Times, Telegraph UK, Cara Magazine, Millie. • Broadcast: Two Good Day LA features with 10 restaurants showcased (Wellness Week and Boat Parade), Spectrum News 1. • Paid media Impressions reached over 7.3 million within the LA and OC regions. • Targeted media such as Pandora, relevant digital sites and social channels were used to broaden audience reach and engagement. . r Website • Page views - 689,361 + unique sessions 270,525, an increase of 14 percent YOY. Direct/Digital Marketing • Published the Dine NB Newsletter, which includes stakeholder spotlights, upcoming events, special offers through the email subscription database, as well as content prepared by food bloggers. • Social media channels -42 percent increase. • Ran a successful email campaign, 52 Weeks of Dining, in August of 2019, which was focused on increasing the email subscription database. o Pre -campaign: 6,173 subscribers o Post campaign: 10,113 subscribers o Increased distribution database by 63 percent. o Yielded 162k+ impressions. • Distributed quarterly stakeholder emails, which provides partner updates and stakeholder applicable content. • Continued our video series, Weekly Bites & Culinary Journeys, highlighting stakeholder establishments. These videos generated over 113,447 views. • 72 participating restaurants — record-breaking • 8 new restaurants participated • Partnered with Second Harvest Food Bank. Diners had the opportunity to make a charity donation - $4,090. • Culinary Journey's taste event sold 160 tickets to the public, an increase of 60 percent YOY. 0 55 media & influencers attended the media launch event o Secured 57 placements from media event. o $6,900 in ticket sales, increase of 75.5 percent YOY. • Revenue for event participation of $39,599, a 19 percent increase from last year. • Expanded partnerships with OpenTable and Yelp OC. • Three NBRW preview tastings with Yelp OC, over 68k+ impressions. • 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. • Website performance —180,797 -page views, increase of 70 percent YOY. • Estimated consumer spend of $3.9 million, an increase of 3 percent YOY. • Top Restaurant Results: 15 percent sales increase during RW, 100 percent satisfaction, 88 percent will return in 2021. • Total media placements — 75, increase of 192 percent YOY. • Total PR media impressions — 221.5 million. • Total paid and in-kind advertising impressions -4.5 million. • Total restaurant week media (earned & paid) impressions estimated at 226 million — increase of 1,286% YOY. Billing • During FY 2019-2020, the NBRA BID collected approximately $175,013 in stakeholder assessments. 15-18 ATTACHMENT D RESOLUTION NO. 2020-59 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, 2020 TO JUNE 30, 2021, 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 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 for each fiscal year; WHEREAS, the advisory board, known as the NBRA BID Board of Directors, has prepared an Annual Report for the 2019-2020 fiscal year which is on file in the Office of the City Clerk ("NBRA BID Annual Report"); and WHEREAS, on June 9, 2020, the NBRA 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 NBRA 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 NBRA BID for the fiscal year July 1, 2020 to June 30, 2021, pursuant to the 1989 Law. Such benefit assessment shall be as follows: Stakeholder Category Assessment Levy Full -serve restaurant (e.g., with wait staff) $450 Fast -casual restaurant (e.g., place order at counter) $375 Grocery or market $375 Coffee, tea or specialty shop $112.50 Dessert, bakery or treats $112.50 Juice bar or smoothie shop $112.50 Catering company $112.50 15-19 Resolution No. 2020 - Page 2 of 4 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 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 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 NBRA 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(a)new ortbeachca.gov_ if you would like to receive a copy of the report. 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 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 map attached as Exhibit A, and incorporated herein by reference. 15-20 Resolution No. 2020 - Page 3 of 4 Section 7: The time and place for a public hearing on the NBRA BID renewal is set for 7 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 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. 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 NBRA 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. 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. 15-21 Resolution No. 2020 - Page 4 of 4 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 9t" day of June, 2020. Will O'Neill Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE I A CM, C �- Aaron C. Harp City Attorney Attachment(s): Exhibit A (Boundary Map) 15-22 Costa Mesa i I 1 Newport Beach 1� { 06/2012012 RW� 0 Cor ata Del rAa1 t9;;��Newport Beach Restaurant Assoc' Business Improvement Distri 1 1 x \� a Newport Coast f � 1/ I \ 1 1 �l J Ac 15-23