HomeMy WebLinkAbout05 - Resolutions to Disestablish Balboa Village and Marine Avenue Business Improvement Districts�EW�Rr CITY OF
NEWPORT BEACH
City Council Staff Report Agenda Item No. 5
April 23, 2013
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949 - 644 -3000, dkiff @newportbeachca.gov
PREPARED BY: Tara Finnigan, Public Information Manager
APPROVED: :)� O.
TITLE: Resolutions of Intention to Disestablish the Balboa Village and
Marine Avenue Business Improvement Districts
ABSTRACT:
The Balboa Village and Marine Avenue Business Improvement Districts (BIDs) Advisory
Boards recommend disestablishing the BIDs so that merchant associations,
independent of the City of Newport Beach (City), can be formed.
RECOMMENDATIONS:
1. Adopt Resolution No. 2013 -37, a Resolution of the City Council of the City of
Newport Beach Declaring its Intention to Disestablish the Balboa Village
Business Improvement District and Hold a Public Hearing.
2. Adopt Resolution No. 2013 -38, a Resolution of the City Council of the City of
Newport Beach Declaring its Intention to Disestablish the Marine Avenue
Business Improvement District and Hold a Public Hearing.
FUNDING REQUIREMENTS:
Should the Council approve this item, it will cost up to $2500 to publish both Resolutions
of Intention in the legal section of the Daily Pilot newspaper.
Resolutions of Intention to Disestablish the Balboa Village and Marine Avenue Business
Improvement Districts
April 23, 2013
Page 2
DISCUSSION:
The Balboa Village' and Marine Avenue BIDs were formed pursuant to the Parking and
Business Improvement Area Law of 1989, codified in California Streets and Highways
Code Sections 36500 et seq. (Act), for the purpose of financing activities and programs
to benefit businesses located and operating in the territory of the BIDS. The Balboa
Village BID's territory encompasses the area between A Street and Coronado Street on
the Balboa Peninsula. (Attachment A to this staff report is the boundary map for the
BID.) The Marine Avenue BID's territory includes the 200 and 300 blocks of Marine
Avenue on Balboa Island. (Attachment B to this staff report is the boundary map for the
BID.)
The BIDs are compromised of small business owners, accustomed to making quick and
independent decisions in the private- sector environment. As formed under the Act, the
BIDs are essentially considered committees of the City and thus, are subject to the
same set of laws, policies and procedures that the City Council and staff must follow.
The BID Advisory Boards are comprised of business owners with limited time for their
volunteer BID duties. They have found many of the laws and procedures required by the
City to be complicated and burdensome in light of the specific marketing and
improvement efforts they desire to accomplish for their BIDs. Therefore, the BID
Advisory Boards support disestablishing the BIDs and allowing individual businesses to
form merchant's associations independent of the City.
Each BID Board voted in favor of recommending the City Council disestablish its
respective BID. The Balboa Village BID Advisory Board voted in favor of
disestablishment on November 13, 2012 and the Marine Avenue BID Advisory Board
voted on January 17, 2013.
Conversely, the City administers the BIDs and extensive staff support from the City
Manager's Office, Finance Department, and City Attorney's Office are needed to keep
the BIDs operating from month to month. At the March 26, 2013 City Council Study
Session, staff presented a plan for disestablishing these two BIDs and proposed having
the City enter into multi -year agreements with the merchant's associations, once
formed. The agreements with the independent merchants associations would enable
the City to continue to provide support for marketing and improvements for Balboa
Village and Marine Avenue. The City Council provided general direction and support for
this concept at its March 26 Study Session.
Pursuant to the Act, a resolution of intention to disestablish each BID must be adopted
by the City Council prior to holding a public hearing and considering the adoption of an
ordinance formally disestablishing the BIDs. Therefore, City staff is recommending
' On February 27, 1995 the Newport Beach City Council adopted Ordinance No. 95 -4
establishing the Central Balboa Business Improvement District. The BID subsequently changed
its name and is now commonly referred to as the Balboa Village Business Improvement District.
Resolutions of Intention to Disestablish the Balboa Village and Marine Avenue Business
Improvement Districts
April 23, 2013
Page 3
adoption of Resolution 2013 -37 and Resolution 2013 -38, attached to this staff report as
Attachments C and D, and setting the public hearing date for disestablishing the BIDs
for May 14, 2013.
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:
This agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers this item).
Submitted by:
L/at -41ir�DD /
Tara Finnigan Q
Public Information Manager
Attachment: A. Boundary Map for the Balboa Village Business Improvement District
B. Boundary Map for the Marine Avenue Business Improvement
District
C. Resolution No. 2013 -37
D. Resolution No. 2013 -38
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Attachment C
RESOLUTION NO. 2013 -37
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
DISESTABLISH THE CENTRAL BALBOA BUSINESS
IMPROVEMENT DISTRICT, A.K.A. THE BALBOA
VILLAGE BUSINESS IMPROVEMENT DISTRICT, AND TO
HOLD 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 February 27, 1995, the City Council of the City of Newport Beach
( "City ") adopted Ordinance No. 95 -4 establishing the Central Balboa Business
Improvement District, a.k.a. the Balboa Village Business Improvement District ( "BID ");
WHEREAS, the assessments collected on behalf of the BID by the City has
enabled the BID to provide promotion, marketing and advertising opportunities along
with general public area improvements and maintenance programs within the BID;
WHEREAS, the Act requires that each year, the activities, boundaries, and
assessments of the BID be reviewed by the BID's Advisory Board for purposes of
making recommendations to the City Council;
WHEREAS, on November 13, 2012, the BID's Advisory Board voted to
recommend that the City Council disestablish the BID in order to allow the businesses
within the BID to form an independent merchant association; and
WHEREAS, pursuant to California Streets and Highways Code Section 36550,
the City is required to adopt this resolution of intention to disestablish the BID prior to
holding a public hearing and the adoption of an ordinance formally disestablishing the
BID.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided above are true and correct and are
incorporated into the operative part of this resolution.
Section 2: The City Council declares its intention to disestablish the BID.
s
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Section 3: In accordance with California Streets and Highways Code Section
36550(b), should the BID be disestablished, any assets acquired with the revenues from
the assessments levied within the BID shall be sold or donated to a non - profit
corporation. 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 BID that have paid their annual assessment
by applying the same method and basis that was used to calculate the most recent
assessment levied on businesses within the BID.
Section 4: Pursuant to California Streets and Highways Code Section
36550(b), on Tuesday, May 14, 2013 at 7:00 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 BID.
Section 5: The City Clerk is directed to give notice of the public hearing on the
disestablishment of the 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. Notice of the public hearing shall be given by mailing a
complete copy of this resolution of intention by first -class mail to each business owner
assessed within the BID, within seven (7) days following the City Council's adoption of
this resolution of intention.
Section 6: 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 23rd day of April, 2013.
ATTEST:
Leilani I. Brown,
City Clerk
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Keith D. Curry, Mayor
Attachment D
RESOLUTION NO. 2013 -38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
DISESTABLISH THE MARINE AVENUE BUSINESS
IMPROVEMENT DISTRICT AND TO HOLD 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 October 19, 1995, the City Council of the City of Newport Beach
( "City ") adopted Ordinance No. 95 -50 establishing the Marine Avenue Business
Improvement District ( "BID ");
WHEREAS, the assessments collected on behalf of the BID by the City has
enabled the BID to provide promotion, marketing and advertising opportunities along
with general public area improvements and maintenance programs within the BID;
WHEREAS, the Act requires that each year, the activities, boundaries, and
assessments of the BID be reviewed by the BID's Advisory Board for purposes of
making recommendations to the City Council;
WHEREAS, on January 17, 2013, the BID's Advisory Board voted to recommend
that the City Council disestablish the BID in order to allow the businesses within the BID
to form an independent merchant association; and
WHEREAS, pursuant to California Streets and Highways Code Section 36550,
the City is required to adopt this resolution of intention to disestablish the BID prior to
holding a public hearing and the adoption of an ordinance formally disestablishing the
BID.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided above are true and correct and are
incorporated into the operative part of this resolution.
Section 2: The City Council declares its intention to disestablish the BID.
Section 3: In accordance with the California Streets and Highways Code
Section 36550(b), should the BID be disestablished, any assets acquired with the
a
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revenues from the assessments levied within the BID shall be sold or donated to a non-
profit corporation. 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 BID that have paid their annual
assessment by applying the same method and basis that was used to calculate the
most recent assessment levied on businesses within the BID.
Section 4: Pursuant to California Streets and Highways Code Section
36550(b), on Tuesday, May 14, 2013 at 7:00 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 BID.
Section 5: The City Clerk is directed to give notice of the public hearing on the
disestablishment of the 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. Notice of the public hearing shall be given by mailing a
complete copy of this resolution of intention by first -class mail to each business owner
assessed within the BID, within seven (7) days following the City Council's adoption of
this resolution of intention.
Section 6: 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 23rd day of April, 2013.
ATTEST:
Leilani I. Brown,
City Clerk
Keith D. Curry, Mayor
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