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Home My WebLink About97-37 - Modifying the Basis for Levying Assessments in the Marine Avenue Business Improvement District for Fiscal Year 1998• ORDINANCE NO. 97 -37 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH MODIFYING THE BASIS FOR LEVYING ASSESSMENTS IN THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 1998 WHEREAS, on January 1, 1996 the Marine Avenue Business Improvement District was established, which provided for the imposition of a benefit assessment upon businesses within the District; and WHEREAS, upon recommendation of the Advisory Board the City Council desires to modify the basis for levying assessments in the District. • NOW, THEREFORE, the City Council of the City of Newport Beach does ordain as • follows: SECTION 1. Intent and Purpose. On October 19, 1995 the City Council of the City of Newport Beach adopted Ordinance No. 95 -50 establishing the Marine Avenue Business Improvement District. On November 10, 1997, the City Council adopted Resolution No. 97 -73 declaring its intention to levy a benefit assessment on businesses within the District, the proceeds of which shall be used for the public purposes therein described, pursuant to the Parking and Business Improvement Area Law of 1989, Part 6 (comtnencing with Section 36500) of Division 18 of the California Streets and Highways Code (the "Act "). On November 10, 1997, the City Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 1 Council held a public meeting in the City of Newport Beach Council Chambers which was duly • noticed pursuant to the Act, and introduced this Ordinance. On December 8, 1997 and January 12, 1998 the City Council held public hearings in the City of Newport Beach Council Chambers to receive protests and comments from any persons and affected business owners. At the conclusion of the public hearing the City Council determined that oral and written protests from businesses in the District area that would pay 50 percent or more of the proposed assessment had not been received; and based on all evidence presented that the businesses within the District will be benefited by the expenditure of the funds raised by the assessments levied. In its Annual Report submitted at the November 10, 1997 public meeting and at the January 12, 1998 public hearing the Advisory Board submitted recommendations to the City • Council that the basis for levying the assessment be modified as described in Section 4 below. SECTION 2. District Area Boundaries. The :District boundaries shall remain unchanged from that established in Ordinance 95 -50. SECTION 3. Boundary Modification. The City Council may modify the boundaries or assessments established by this Ordinance. Such modifications shall be made pursuant to the requirements of the Act, but no assessment shall be modified which would impair the ability of the District to meet the obligation of a contract to be paid from the revenues derived from the levy of assessments. SECTION 4. Benefit Assessment. The City Council hereby levies and imposes and orders the collection of a benefit assessment upon persons conducting business in the District. • Such benefit assessment shall be as follows: Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 2 A. Banks and financial institutions that are exempt from City business license • regulations shall be assessed $500 per year. B. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents D. The assessment for businesses not included under Sections 4.A through C that do not occupy street -level space shall be equal to the annual business license tax as established • pursuant to Chapter 5.08 of the Municipal Code. E. The assessment for all other businesses within the District shall be 190 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code. F. An owner of more than one business within the District shall only be required to pay the assessment for the business with the highest assessment amount, and shall be exempt from assessments on additional businesses within the District. SEC'T'ION 5: Collection of Benefit Assessment. The benefit assessments shall be collected by the City in one annual installment. Assessments will be levied on the date the annual District renewal becomes effective, and for new businesses in the District on the day of the issuance of a business license by the City. The assessment for new businesses shall be pro- 0 rated according to the number of full months remaining in the District's fiscal year. Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 3 SECTION 6. Penalty for Delinquent Payment. The penalty for delinquent payments • shall be equal to that established for delinquent business license taxes pursuant to Chapter 5.08 of the Municipal Code, providing that the penalty amount to be added shall in no event exceed one hundred percent of the assessment amount due. No City Business License shall be knowingly issued or renewed to any business which, at the time of making application for license or renewal thereto, is indebted to the City for any delinquent benefit assessment. SECTION 7. Changes in Assessments. Any businesses covered by this Ordinance shall also be subject to changes which may be made in the assessments or in the uses to which the revenues shall be put, as specified in this Ordinance and as permitted by the Act; such changes shall be made by later ordinance adopted after hearing before the City Council, or by Resolution, if approved in conjunction with confirmation of the Annual Report. • SECTION 8. Improvements and Activities. The benefit assessments collected pursuant to this Ordinance shall be used only for the following :purposes: in the area. 1. Marketing, advertising and public relations. 2. Brochure development and distribution. 3. Promotion of public events which are to take place on or in any public places 4. Decoration of any public place in the area. 5. Public area improvements and maintenance activities. 6. The general promotion of retail trade activities. The City Council of Newport Beach shall have sole discretion as to how the revenue derived from the benefit assessments is to be used within the scope of the above purposes; Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 4 provided, however, it shall consider recommendations as to the use of said revenue made by the • Advisory Board referenced in Section 9 of this Ordinance. The revenues from the levy of assessments shall not be used to provide improvements or activities for the direct benefit of properties outside of the District or for any other purpose not specified in this section or in any subsequent Ordinance or Resolution. SECTION 9. Advisory Board. (a) Appointment. The City Council by Resolution 95 -109 appointed an Advisory Board which shall make recommendations; to the City Council on the expenditure of revenues derived from assessments pursuant to this Ordinance, on the classification of businesses, as appropriate, and on the basis and method of levying the assessments. (b) Annual Report. The Advisory Board shall prepare a report for each fiscal • year for which assessments are to be levied and collected to pay the costs of the improvements and activities described in the report. The report shall be filed with the City Clerk and shall comply with all the requirements of Streets and Highways Code Section 36533. (c) Approval of Report. The City Council may approve the annual report filed by the Advisory Board or may modify any particular item contained in the report and approve it as modified. The City Council shall not approve a change in the basis or method of levying assessments which would impair an executed contract to be paid from the revenues derived from the assessments. SECTION 10. Annual Approval/Resolution. After approval of the report filed by the Advisory Board, the City Council pursuant to Section 36534 of the Act, shall adopt annually a • resolution of intention to levy an assessment for that fiscal year. The City Council shall hold a Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 5 • • public hearing prior to the adoption of a resolution confirming the Annual Report and Levy of Assessments. SECTION 11. This ordinance shall take effect 30 days after passage. PASSED AND ADOPTED by the City Council of the City of Newport Beach at a regular meeting thereof held on the 26th day of January 1998. AYES, COUNCIL MEMBERS THOMSON, DEBAY, ' O'NEIL, HEDGES, GLOVER, NOYES, MAYOR EDWARDS NOES, COUNCIL MEMBERS NONE ABSENT, COUNCIL MEMBERS NONE MAYOR ATTEST: HOME& AMID 1LGjVWdL*j":K4 e I =/I/ - • F:1..\ BIDS\ MARINE \COUNCIL\98RENEW\ORD2.DOC Ordinance No. 97 -37 Marine Avenue Business Improvement District Page 6 • 0 • STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing ordinance, being Ordinance No. 97 -37 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 26th day of January, 1998, and that the same was so passed and adopted by the following vote, to wit: Ayes: Thomson, Debay, O'Neil, Hedges, Glover, Noyes, and Mayor Edwards Noes: None Absent: None Abstain: None _P.._w....1 .. -. . official E IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the FO 91 this 27th day of January, 1998. �l I1 lz�: h 9�f �a(�l�vnc Yn. Ala, City Clerk of the City of Newport Beach, California CERTIFICATE OF PU13LICATION STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF NEWPORT BEACH ) I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby certify that Ordinance No. 97 -37 has been duly and regularly published according to law and the order of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper of general circulation on the following date, to wit: January 31, 1998. In witness whereof, I have hereunto subscribed my name this . S�L day of 1998. City Clerk of the City of Newport Beach, California