HomeMy WebLinkAbout04 - Eliminating the Balboa Village Area Benefit District and Directing All Unprogrammed Funds Returned to the General FundQ �EwPpRT
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<,FORN'P City Council Staff Report
June 8, 2021
Agenda Item No. 4
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Scott Catlett, Finance Director/Treasurer - 949-644-3123,
scatlett@newportbeachca.gov
PREPARED BY: Scott Catlett, Finance Director/Treasurer,
scatlett@newportbeachca.gov
PHONE: 949-644-3123
TITLE: Ordinance No. 2021-12 and Resolution No. 2021-47: Eliminating the
Balboa Village Area Benefit District and Directing All Unprogrammed
Funds Returned to the General Fund
ABSTRACT:
On April 27, 2021, Councilmember Will O'Neill requested, and the City Council approved,
direction to staff to prepare an ordinance eliminating the Balboa Village Area Benefit
District (District) from the Area Benefit District Reserve, which is codified in Section
12.44.029 of the Newport Beach Municipal Code (NBMC). Councilmember O'Neill also
requested that Resolution No. 2014-101 be repealed, which provides that 100 percent of
non -Tidelands funds generated from parking meters and lots within the District should be
placed in the Balboa Village Area Benefit District Fund. Pursuant to that direction,
approved by City Council on May 25, 20201, staff prepared the attached Ordinance and
Resolution to eliminate the District.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Conduct second reading and adopt Ordinance No. 2021-12, An Ordinance of the City
Council of the City of Newport Beach, California, Amending Section 12.44.029 (Area
Benefit District Reserve) of Chapter 12.44 (Stopping, Standing and Parking
Restrictions) of Title 12 (Vehicles and Traffic) of the Newport Beach Municipal Code
to Eliminate the Balboa Village Area Benefit District; and
c) Adopt Resolution No. 2021-47, A Resolution of the City Council of the City of Newport
Beach, California, Repealing City Council Resolution No. 2014-101 to Eliminate the
Balboa Village Area Benefit District Fund and Direct All Unprogrammed Funds to be
Returned to the General Fund.
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Ordinance No. 2021-12 and Resolution No. 2021-47: Eliminating the Balboa Village
Area Benefit District and Directing All Unprogrammed Funds Returned
to the General Fund
June 8, 2021
Page 2
DISCUSSION:
With implementation of the Balboa Village Master Plan now complete, the Balboa Village
Advisory Committee (BVAC) sunset as of December 31, 2020, pursuant to Resolution
No. 2018-80. Resolution No. 2018-80 had extended until that date the time period during
which the BVAC recommended to the City Council expenditures of District funds. The
District was originally created in 2014, along with a special fund in the City Treasury into
which subsequently received non -Tidelands parking revenues from all meters and lots
within the District have been deposited. These funds currently total approximately
$396,000 per year. The funding has been used for enhancements to the public right-of-
way, signage, improved parking management, and other improvements consistent with
the Resolution creating the District.
On May 25, 2021, the City Council introduced and passed to second reading Ordinance
No. 2021-12 (Attachment A), which amends Section 12.44.029 of the NBMC to eliminate
the District. There are currently no other Area Benefit Districts authorized in the City;
however, Section 12.44.029 leaves open the possibility of forming one in the future should
this or a future City Council choose to do so. Resolution No. 2021-47 (Attachment B)
repeals Resolution No. 2014-101, which diverted the non -Tidelands parking revenues
within the District from the General Fund to the District. Repealing the Resolution will
redirect those funds back to the General Fund on a go -forward basis. The Resolution also
directs that unprogrammed District funds on hand be returned to the General Fund.
As discussed on May 25, 2021, two capital projects have additional District funding
recommended for appropriation as part of the Fiscal Year 2021-22 capital improvement
program. These include:
• Balboa Blvd. Median Improvements $982,912 ($850,000 new)
• Balboa Peninsula Summer Trolley $327,866 ($150,000 new)
Staff's recommendation is that these projects remain in place and funded from District
funds given that they are already included in the capital improvement program. Once each
project is completed, any unused funding would be returned to the General Fund.
FISCAL IMPACT:
Staff estimate that approximately $150,000 remains unprogrammed in the Balboa Village
Area Benefit District Fund that will be returned to the General Fund as a result of the
requested action. On an ongoing basis beginning in FY 2021-22, approximately $396,000
of additional ongoing parking revenue per year will now be deposited to the General Fund.
These funds have now been included in the FY 2021-22 General Fund revenue budget,
in anticipation of this item being approved, given the approval of the first reading of the
attached ordinance at the May 25, 2021, City Council meeting. A portion of these funds,
totaling $112,000, has been added to the FY 2021-22 Proposed Budget Revisions to fund
enhanced porter service, additional trash cans, and more frequent trash can service in
beach areas, including Balboa Village.
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Ordinance No. 2021-12 and Resolution No. 2021-47: Eliminating the Balboa Village
Area Benefit District and Directing All Unprogrammed Funds Returned
to the General Fund
June 8, 2021
Page 3
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment —Ordinance No. 2021-12
Attachment B —Resolution No. 2021-47
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ATTACHMENT A
Attachment A —Ordinance No. 2021-12
ORDINANCE NO. 2021-12
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, AMENDING
SECTION 12.44.029 (AREA BENEFIT DISTRICT
RESERVE) OF CHAPTER 12.44 (STOPPING, STANDING
AND PARKING RESTRICTIONS) OF TITLE 12 (VEHICLES
AND TRAFFIC) OF THE NEWPORT BEACH MUNICIPAL
CODE TO ELIMINATE THE BALBOA VILLAGE AREA
BENEFIT DISTRICT
WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City")
vests the City Council with the authority to make and enforce all laws, rules and
regulations with respect to municipal affairs subject only to the restrictions and
limitations contained in the Charter and the State Constitution, and the power to
exercise, or act pursuant to any and all rights, powers, and privileges, or procedures
granted or prescribed by any law of the State of California,
WHEREAS, on November 25, 2014, the City Council introduced Ordinance No.
2014-21 to create the Area Benefit District Reserve and the Balboa Village Area Benefit
District as set forth in Section 12.44.029 (Area Benefit District Reserve) of the Newport
Beach Municipal Code ("NBMC");
WHEREAS, Section 12.44.029 of the NBMC authorizes the City Council to direct
revenue into the Area Benefit District Reserve by resolution;
WHEREAS, by adoption of this ordinance on June 8, 2021, the City Council
desires to eliminate the Balboa Village Area Benefit District and, contemporaneously
with this action, the City Council is adopting Resolution No. 2021- to eliminate the
Balboa Village Area Benefit District Fund and return all unprogrammed funds to the
General Fund; and
WHEREAS, the elimination of the Balboa Village Area Benefit District from
Section 12.44.029 will not prevent the City Council from establishing future area benefit
districts by ordinance, or directing revenue into other area benefit districts.
NOW THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Chapter 12.44.029 (Area Benefit District Reserve) of the NBMC is
hereby amended to read as follows:
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Ordinance No. 2021 -
Page 2 of 3
12.44.029 Area Benefit District Reserve.
A. Creation.
1. The City Council hereby creates a special capital improvement fund, to be
known as the Area Benefit District Reserve.
2. The City Council may, by ordinance, establish Area Benefit Districts and may,
by resolution, direct revenue into the Area Benefit District Reserve.
3. The Area Benefit District Reserve shall be used for the purposes of enhancing
or supplementing services to the Area Benefit District(s) identified or the general
vicinity provided there is a benefit to the Area Benefit District(s). Enhancements or
supplemental services may be in the form of streetscape improvements on public
or private property; other beautification projects, including, but not limited to,
commercial facade improvements; transit, pedestrian, and bicycle infrastructure or
wayfinding signage; the acquisition, leasing or construction of additional parking;
extraordinary maintenance programs for public areas; creation or implementation
of transportation mobility or parking management strategies, including, but not
limited to, shared parking. Expenditures from the Area Benefit District Reserve
may include all expenditures necessary or convenient to accomplish the purposes
for which the funds are to be used.
B. The following Area Benefit District is hereby established pursuant to the provisions
of this chapter:
[INTENTIONALLY LEFT BLANK]
Section 2: The recitals provided in this ordinance are true and correct and are
incorporated into the substantive portion of this ordinance.
Section 3: If any section, subsection, sentence, clause or phrase of this
ordinance 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 ordinance. The
City Council hereby declares that it would have passed this ordinance 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.
ISO
Ordinance No. 2021 -
Page 3 of 3
Section 4: The City Council finds the introduction and adoption of this
ordinance 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 5: Except as expressly modified in this ordinance, all other sections,
subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code
shall remain unchanged and shall be in full force and effect.
Section 6: The Mayor shall sign and the City Clerk shall attest to the passage
of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be
published pursuant to City Charter Section 414. This ordinance shall become effective
thirty (30) calendar days after its adoption.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 25th day of May, 2021, and adopted on the 8th day of
June, 2021, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
BRAD AVERY, MAYOR
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
o,,
AARON C. HARP, CITY ATIORNEY
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ATTACHMENT B
Attachment B —Resolution No. 2021-47
HU.,
RESOLUTION NO. 2021-47
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, REPEALING CITY
COUNCIL RESOLUTION NO. 2014-101 TO ELIMINATE
THE BALBOA VILLAGE AREA BENEFIT DISTRICT
FUND AND DIRECT ALL UNPROGRAMMED FUNDS TO
BE RETURNED TO THE GENERAL FUND
WHEREAS, Section 12.44.029 (Area Benefit District Reserve) of the Newport
Beach Municipal Code ("NBMC") provides that the City Council may direct revenue into
the Area Benefit District Reserve by resolution;
WHEREAS, on November 25, 2014, the City Council approved Resolution No.
2014-101 directing one hundred percent (100%) of all on -street parking fees and revenue
generated by the City within the Balboa Village Area Benefit District be deposited into the
Area Benefit District Reserve to be used in a manner consistent with Section 12.44.029
of the NBMC; and
WHEREAS, on June 8, 2021, the City Council adopted Ordinance No. 2021-12
eliminating the Balboa Village Area Benefit District and, by adoption of this Resolution
No. 2021-47, eliminates the Balboa Village Area Benefit District Fund and directs all
unprogrammed funds to be returned to the General Fund.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council does hereby repeal Resolution No. 2014-101 and
directs the City Manager or her designee to close the Balboa Village Area Benefit District
Fund and return all unprogrammed funds to the General Fund.
Section 2: The recitals provided in this resolution are true and correct and are
incorporated into the operative part of this resolution.
Section 3: 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.
Resolution No. 2021 -
Page 2 of 2
Section 4: 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 5: This resolution shall be effective thirty (30) calendar days after the
adoption of Ordinance No. 2021-12, and the City Clerk shall certify the vote adopting this
resolution.
ADOPTED this 8th day of June, 2021.
Brad Avery
Mayor
/_triA*36
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
per„
Aar n C. Harp
City Attorney
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