HomeMy WebLinkAbout16 - Resolution of Intention to Disestablish the NBRABID and Fix the Time and Place of Public HearingQ �EwPpRT
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<,FORN'P City Council Staff Report
June 8, 2021
Agenda Item No. 16
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. 2021-53 Resolution of Intention to Disestablish the
Newport Beach Restaurant Association Business Improvement
District and Fix the Time and Place of Public Hearing
ABSTRACT:
Per the direction the City Council provided at its May 11, 2021 meeting, staff is returning
with a Resolution of Intention to Disestablish the Newport Beach Restaurant Association
Business Improvement District (NBRA BID) and a proposal on how to dispose of the
NBRA BID's assets.
RECOMMENDATION:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
b) Approve the Proposed Plan to Dispose of the Newport Beach Restaurant Association
Business Improvement District's Assets; and
c) Adopt Resolution No. 2021-53, A Resolution of the City Council of the City of Newport
Beach, California, Declaring Its Intention to Disestablish the Newport Beach
Restaurant Association Business Improvement District and Fix the Time and Place of
Public Hearing.
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 Streets and Highways Code
Sections 36500 et seq., for the purpose of financing activities and programs to benefit
businesses located and operating in the area. The NBRA BID encompasses any food
service business within the boundaries of the City of Newport Beach (City), such as
restaurants, markets with dine -in or take-out service, bars serving food, dessert shops,
coffee shops, juice bars, catering companies, or similar food -related businesses.
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Resolution No. 2021-53: Resolution of Intention to Disestablish the Newport Beach
Restaurant Association Business Improvement District and Fix the Time
and Place of Public Hearing
June 8, 2021
Page 2
The NBRA BID is nearing the end of its FY 2020-21 operating period and staff is returning
with a proposal on how to dispose of the NBRA BID's assets, per the direction provided
by the City Council at its May 11, 2021 meeting. Pursuant to the 1989 Law, a plan on how
to dispose of assets must be prepared and filed with the City Council and a public hearing
must be held prior to the BID's disestablishment. If the City Council adopts the Resolution
of Intention, the public hearing will be held on July 13, 2021.
Fiscal Year 2020-21 Operating Results
The estimated year-end operating budget for the NBRA BID's FY 2020-21 is reflected in
the table below.
Stakeholder Assessments (Net Late Fees) $132,719
Bad Debt (Uncollectible Assessments Due to Closures) -$49,375
City COVID Economic Relief & Special Event Grant Funding $49,000
Total Income $132,344
Total Expenditures $208,622
End of Year Balance -$76,278
Use of Reserves $76,278
End of Year Balance (Retained Earnings) $0
The NBRA BID has set aside year-end balances since 2016 into a reserve. As of April
30, 2021, the NBRA BID's Reserve Account includes cash reserves totaling an estimated
$174,131. After using roughly $76,278 from cash reserves to fill the revenue shortfall in
FY 2020-21, and removing the uncollectable accounts receivables, NBRA BID is
projected to end FY 2020-21 with cash reserves totaling an estimated $97,853.
Proposed Disestablishment
BID Funds: Per the 1989 Law, any remaining revenues derived from the levy of
assessments shall be refunded to the owners of the businesses operating within
the BID, that are current in their annual assessment, by applying the same method
and basis that was used to calculate the assessment levied this fiscal year. As
previously mentioned, the NBRA BID would have an estimated $97,853 remaining
in its account at the end of FY 2020-21. Staff proposes that all the remaining funds
in the NBRA BID account at the end of FY 2020-21 be refunded to the
stakeholders, per the 1989 Law.
• Physical Assets: The NBRA BID has no physical assets.
Resolution of Intention
The Resolution of Intention (Attachment A) for the NBRA BID provides for the following:
• Disestablishes the Newport Beach Restaurant Association Business Improvement
District at the end of FY 2020-21.
• Sets the public hearing for July 13, 2021 at 4 p.m. or as soon thereafter the matter
may be heard that evening.
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Resolution No. 2021-53: Resolution of Intention to Disestablish the Newport Beach
Restaurant Association Business Improvement District and Fix the Time
and Place of Public Hearing
June 8, 2021
Page 3
Per the 1989 Law, a resolution of intention to disestablish the NBRA BID must be adopted
by the City Council prior to holding a public hearing and considering the adoption of an
ordinance formally disestablishing the NBRA BID. The City Council may revise, change,
or modify the Newport Beach Restaurant Association Business Improvement District Plan
to Dispose of Assets.
FISCAL IMPACT:
City staff will work with the NBRA BID administrators to refund the assessments to the
NBRA BID stakeholders and to close the NBRA BID financial accounts once the BID is
formally disestablished.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Resolution No. 2021-53
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ATTACHMENT A
RESOLUTION NO. 2021-53
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO DISESTABLISH THE NEWPORT BEACH
RESTAURANT ASSOCIATION BUSINESS
IMPROVEMENT DISTRICT AND FIX THE TIME AND
PLACE OF A PUBLIC HEARING
WHEREAS, the Parking and Business Improvement Area Law of 1989 (California
Streets and Highways Code Sections 36500 et seq.) ("Act") authorizes cities to establish
parking and business improvement areas for the purpose of imposing assessments on
businesses for certain activities,
WHEREAS, on November 13, 1995, the City Council of the City of Newport Beach
("City") adopted Ordinance No. 95-55 establishing the Newport Beach Restaurant
Association Business Improvement District ("NBRA BID");
WHEREAS, the assessments collected on behalf of the NBRA BID has enabled
the NBRA BID to provide marketing, promotion and advertising of food establishments
within the NBRA BID;
WHEREAS, the Act requires that each year, the activities, boundaries, and
assessments of the NBRA BID be reviewed by the NBRA BID's Advisory Board for
purposes of making recommendations to the City Council, and an annual report be filed
and approved by the City Council for each fiscal year; and
WHEREAS, on May 11, 2021, the Newport Beach City Council reviewed the NBRA
BID's 2020-2021 annual report and directed staff to bring back a resolution to disestablish
the NBRA BID due to it having fulfilled its original mission.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby declares its intention to disestablish the
NBRA BID.
Section 2: Pursuant to California Streets and Highway Code Section 36550(b),
should the NBRA BID be disestablished, all assets, if any, acquired with the revenues
from the assessments levied within the NBRA BID shall be sold. Pursuant to California
Streets and Highways Code Section 36551(a) any remaining revenues derived from the
levy of assessments or the sale of assets, if any, shall be refunded to businesses within
the NBRA BID that have paid their annual assessment by applying the same method and
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Resolution No. 2021 -
Page 2 of 3
basis that was used to calculate the most recent assessment levied on businesses within
the NBRA BID.
Section 3: Pursuant to California Streets and Highways Code Section 36550(b),
on Tuesday, July 13, 2021 at 4:00 p.m., or as soon thereafter as the matter may be heard,
in the City Council Chambers located at 100 Civic Center Drive, Newport Beach,
California, a public hearing shall be held by the City Council on the disestablishment of
the NBRA BID.
Section 4: The City Clerk is directed to give notice of the public hearing on the
disestablishment of the NBRA BID in accordance with California Streets and Highway
Code Section 36523. Notice of the public hearing shall be given by publishing this
resolution of intention in a newspaper of general circulation in the City once, for at least
seven (7) days before the public hearing. Notice of public hearing shall be given by mailing
a complete copy of this resolution by first-class mail to each business owner assessed
within the NBRA BID, within seven (7) days following the City's Council's adoption of this
resolution of intention.
Section 5: The recitals provided above are true and correct and are
incorporated into the operative part of this resolution.
Section 6: 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 7: The City Council finds the adoption of this resolution is not subject to
the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the
activity will not result in a direct or reasonably foreseeable indirect physical change in the
environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378)
of the CEQA Guidelines, California Code of Regulations, Title 14, Division 6, Chapter 3,
because it has no potential for resulting in physical change to the environment, directly or
indirectly.
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Resolution No. 2021 -
Page 3 of 3
Section 8: This resolution shall take effect immediately upon its adoption by the
City Council, and the City Clerk shall certify the vote adopting this resolution.
ADOPTED this 8th day of dune, 2021.
Brad Avery
Mayor
1_Ai9*16
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
.9., C f'061 --
Aaron C. Harp
City Attorney
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