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c�<,FORN'P City Council Staff Report
June 8, 2021
Agenda Item No. 17
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: Ordinance No. 2021-14: Disestablishing the Corona del Mar
Business Improvement District
ABSTRACT -
On March 25, 2021, the Corona del Mar Business Improvement District (CdM BID) Board
of Directors recommended disestablishing the CdM BID, given that the BID has fulfilled
its original mission of making Corona del Mar a desirable location to conduct business.
The City Council considered the recommendation at its May 11, 2021 meeting and
approved a Resolution of Intention to Disestablish the CdM BID, setting the public hearing
for June 8, 2021.
RECOMMENDATION:
a) Conduct a public hearing;
b) Determine this action is exempt from the California Environmental Quality Act (CEQA)
pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because
this action will not result in a physical change to the environment, directly or indirectly;
and
c) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance
No. 2021-14, An Ordinance of the City Council of the City of Newport Beach,
California, Repealing Ordinance No. 97-24, Ordinance No. 98-15, and Ordinance
No. 99-18, and Disestablishing the Corona del Mar Business Improvement District,
and pass to second reading on June 22, 2021.
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.
17-1
Ordinance No. 2021-14: Disestablishing the
Corona del Mar Business Improvement District
June 8, 2021
Page 2
The CdM BID is nearing the end of its FY 2020-21 operating period and its Board of
Directors, which serves in an advisory capacity to the City Council, has requested
disestablishment of the BID. The CdM BID Board believes the BID has fulfilled its original
mission of making Corona del Mar a desirable location to conduct business. Thanks to
many years of volunteer work and City support, the CdM BID was able to complete a
majority of its Vision Plan, which included various beautification elements and
enhancements, as well as marketing and promotion of the business district.
Pursuant to the 1989 Law, an annual report and 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. The annual report and plan on how to dispose of the CdM BID's
assets was prepared and filed with the City Council on May 11, 2021.
However, on May 26, 2021, the Corona del Mar Chamber of Commerce notified the City
that it would not be accepting the donation of the twenty-seven (27) Happy Holiday
banners and the twenty-seven (27) Explore CdM banners. Per the Distribution of Assets
plan proposed by the CdM BID, donations that are not accepted are to be turned over to
the City to be auctioned off. Any revenues derived from the sale of the assets will be
added to the monetary assets of the BID, which are to be refunded to the CdM BID
businesses. If the banners are not able to be sold, then they are to be disposed.
At the May 11, 2021, City Council meeting, the City Council also adopted Resolution
No. 2021-40, declaring its intention to disestablish the CdM BID and setting the public
hearing for June 8, 2021. A complete copy of the adopted Resolution (Attachment B) and
a cover letter explaining the proposed disestablishment was mailed to each BID member.
The City Clerk also published a complete copy of the Resolution in the Daily Pilot, a local
newspaper.
If approved following a second reading on June 22, 2021, Ordinance No. 2021-14
(Attachment C) would be effective in the new fiscal year.
FISCAL IMPACT:
City staff will be managing the refund of assessments to the CdM BID stakeholders and
the closure of CdM 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.
17-2
Ordinance No. 2021-14: Disestablishing the
Corona del Mar Business Improvement District
June 8, 2021
Page 3
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 — Boundary Map for the Corona del Mar Business Improvement District
Attachment B —Resolution No. 2021-40
Attachment C — Ordinance No. 2021-14
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ATTACHMENT B
RESOLUTION NO. 2021-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO DISESTABLISH THE CORONA DEL MAR
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 Section 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 July 14, 1997, the City Council of the City of Newport Beach ("City")
adopted Ordinance No. 97-24 establishing the Corona del Mar Business Improvement
District ("CdM BID"),
WHEREAS, the assessments collected on behalf of the CdM BID have enabled
the CdM BID to provide promotion, marketing and advertising opportunities along with
general public area improvements and maintenance programs within the CdM BID;
WHEREAS, the Act requires that each year, the activities, boundaries, and
assessments of the CdM BID be reviewed by the CdM BID's advisory board ("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;
WHEREAS, on March 25, 2021, the Advisory Board voted to recommend that the
City Council disestablish the CdM BID due to its having completed the projects under its
Vision Plan and having fulfilled its original mission; and
WHEREAS, the Advisory Board has prepared an annual report for the 2020-2021
fiscal year and has included a proposal for the disposal of the CdM BID's assets upon
disestablishment, which report is on file in the City Clerk's Office ("Annual Report").
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The City Council hereby approves the Annual Report.
17-5
Resolution No. 2021-40
Page 2 of 3
Section 2: The City Council hereby declares its intention to disestablish the CdM
BID for the reason that the CdM BID has completed the projects in its Vision Plan and
has fulfilled its original mission. Should the CdM BID be disestablished, in accordance
with California Streets and Highways Code Section 36550(b) assets acquired with the
revenues from the assessments levied within the CdM BID shall be donated to the Corona
del Mar Chamber of Commerce and the portion designated in the Annual Report for the
City of Newport Beach shall be donated to Visit Newport Beach, Inc. Pursuant to
California Streets and Highways Code Section 36551(a), any remaining revenues derived
from the levy of assessments and the sale of assets, if any, shall be refunded to the
owners of businesses then located and operating within the CdM BID by applying the
same method and basis that was used to calculate the assessment most recently levied.
Section 3: Pursuant to California Streets and Highways Code Section 36550(b),
on Tuesday, June 8, 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 CdM BID.
Section 4: The City Clerk is directed to give notice of the public hearing on the
disestablishment of the CdM BID in accordance with California Streets and Highways
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, and by mailing a complete copy of this resolution
by first-class mail to each business owner within the CdM BID within seven (7) days
following the City 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.
17-6
Resolution No. 2021-40
Page 3of3
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.
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 11th day of May, 2021.
ATTEST:
Leilani I. Brown
City Clerk
APPR VED AS TO FORM:
CITY TORNEY'S OFFI E
Aaron C. Harp
City Attorney
Bra ery
ea -or
C' �P
`LIFUR�
17-7
STATE OF CALIFORNIA
COUNTY OF ORANGE ss.
CITY OF NEWPORT BEACH
I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the
whole number of members of the City Council is seven; the foregoing resolution, being Resolution
No. 2021-40 was duly introduced before and adopted by the City Council of said City at a regular meeting
of said Council held on the 1111 day of May, 2021, and the same was so passed and adopted by the
following vote, to wit:
AYES: Mayor Brad Avery, Mayor Pro Tem Kevin Muldoon, Council Member Noah Blom, Council
Member Joy Brenner, Council Member Diane Dixon, Council Member Duffy Duffield,
Council Member Will O'Neill
NAYS: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of
said City this 1211 day of May, 2021.
vionF, W,.,
��►1/,,,
Leifani I. Brown 1
City Clerk
Newport Beach, California
17-8
ATTACHMENT C
ORDINANCE NO. 2021-14
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, REPEALING
ORDINANCE NO. 97-24, ORDINANCE NO. 98-15 AND
ORDINANCE 99-18, AND DISESTABLISHING THE
CORONA DEL MAR BUSINESS IMPROVEMENT
DISTRICT
WHEREAS, the Parking and Business Improvement Area Law of 1989 (California
Streets and Highways Code Sections 36500 of seq.) ("Act") authorizes cities to establish
parking and business improvement areas for the purpose of imposing assessments on
businesses for certain activities;
WHEREAS, on July 14, 1997, the City Council of the City of Newport Beach ("City
Council") adopted Ordinance No. 97-24 establishing the Corona del Mar Business
Improvement District ("CdM BID");
WHEREAS, on July 13, 1998, the City Council adopted Ordinance No. 98-15,
which modified the basis for levying assessments in the CdM BID;
WHEREAS, on August 23, 1999, the City Council adopted Ordinance No. 99-18,
which modified the basis for levying assessments in the CdM BID;
WHEREAS, on March 15, 2021, the CdM BID's Advisory Board voted to
recommend that the City Council disestablish the BID due to the completion of its projects
under its "Vision Plan" and the fulfillment of the CdM BID's original mission and submitted
a proposal for the disposal of its physical assets;
WHEREAS, on May 11, 2021, the City Council adopted Resolution No. 2021-40
("Resolution") declaring its intention to disestablish the BID and set a public hearing for
June 8, 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, pursuant
to California Streets and Highways Code Section 36550,
WHEREAS, in accordance with California Streets and Highways Code Section
36523(a), the City Clerk caused a complete copy of the Resolution to be published in a
newspaper of general circulation in the City;
WHEREAS, in accordance with California Streets and Highways Code Section
36523(b), the City Clerk caused a complete copy of the Resolution be mailed by first-
class mail to each business owner assessed within the BID, within seven (7) days
following the adoption of the Resolution; and
17-9
Ordinance No. 2021 -
Page 2 of 3
WHEREAS, a public hearing was held by the City Council on June 8, 2021, in the
Council Chambers located at 100 Civic Center Drive, Newport Beach, California, in
person and via teleconferencing, observing restrictions due to the Declaration of a State
Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time,
place and purpose of the public hearing was given in accordance with California
Government Code Section 54950 et seq. ("Ralph M. Brown Act"). Evidence, both written
and oral, was presented to, and considered by, the City Council at this public hearing.
NOW, THEREFORE, the City Council of the City of Newport Beach ordains as
follows:
Section 1: Ordinance No. 97-24, Ordinance No. 98-15, and Ordinance No. 99-
18, are hereby repealed in their entirety. In addition, the City Council repeals all
ordinances and resolutions, or portions thereof, which relate to the CdM BID.
Section 2: Pursuant to California Streets and Highways Code Section 36550,
the City Council hereby disestablishes the CdM BID.
Section 3: In accordance with California Streets and Highways Code Section
36550(b), assets acquired with the revenues from the assessments levied within the CdM
BID shall be donated in accordance with the Resolution.
Section 4: In accordance with California Streets and Highways Code Section
36551, upon the effective date of this ordinance, any remaining revenues derived from
the levy of assessments, or any revenues derived from the sale of assets acquired with
the revenues, shall be refunded to the owners of the businesses then located and
operating within the CdM BID by applying the same method and basis that was used to
calculate the assessment levied this fiscal year or the immediate prior fiscal year if no
assessment has been levied for the current fiscal year.
Section 5: The recitals provided in this ordinance are true and correct and are
incorporated into the operative part of this ordinance.
Section 6: 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.
17-10
Ordinance No. 2021 -
Page 3 of 3
Section 7: The City Council finds the 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 8: 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 Charter Section 414.
This ordinance was introduced at a regular meeting of the City Council of the City
of Newport Beach held on the 8th day of June, 2021, and adopted on the 22nd day of
June, 2021, by the following vote, to -wit:
AYES:
NAYS:
ABSENT:
ATTEST:
LEILANI I. BROWN, CITY CLERK
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
c /
R N C. HARP, CITY ATTORNEY
BRAD AVERY, MAYOR
17-11