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Home My WebLink About05 - Disestablishment of Marine Ave BIDAgenda Item No. 5 May 28, 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: 4 TITLE: Adoption of Ordinance No. 2013 - 12 Disestablishing the Marine Avenue Business Improvement District ABSTRACT: In early 2013, the Marine Avenue Business Improvement District (BID) Advisory Board recommended disestablishing the BID so that a merchant association, independent of the City of Newport Beach (City), could be formed. The City Council considered that recommendation on April 23, 2013 and approved a Resolution of Intention to disestablish the BID. Council then introduced and conducted a public hearing on the attached ordinance on May 14, 2013. RECOMMENDATIONS: 1. Conduct a second reading of and adopt Ordinance No. 2013- 12, an ordinance of the City Council of the City of Newport Beach Repealing Ordinance No. 95 -50 and Ordinance No. 97 -37 and Disestablishing the Marine Avenue Business Improvement District. 2. Approve and accept the BID Advisory Board's recommendation to donate any BID assets located in the public right of way to the City and all other assets to the Balboa Island Improvement Association. FUNDING REQUIREMENTS: The City Manager will propose in the FY 2013 -14 budget an allocation of $40,000 for the merchant association, plus $10,000 more for marketing provided that the association uses Newport Beach and Company (NB & Co) for its marketing efforts. Adoption of Ordinance No. 2013 - 12 Disestablishing the Marine Avenue Business Improvement District May 28, 2013 Page 2 DISCUSSION: The Marine Avenue BID was 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 BID. The Marine Avenue BID's territory includes the 200 and 300 blocks of Marine Avenue on Balboa Island. On April 23, 2013, the City Council adopted Resolution No. 2013 -38, declaring its intention to disestablish the BID. Council then introduced and conducted a public hearing on the attached ordinance on May 14, 2013. If approved following the second reading, Ordinance No. 2013 -12 would be effective on June 30, 2013. In accordance with the California Streets and Highways Code Section 36551, upon the effective date of the ordinance, any remaining revenues derived from the levy of assessments, if any, or any revenues derived from the sale of assets acquired with the revenues, if any, will 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. Any BID assets (such as street furniture, holiday decor, the website) must be sold or donated to a nonprofit organization prior to the BID's disestablishment. On April 29, 2013, the BID Board voted in favor of donating any BID assets located in the public right of way to the City and all other assets to the Balboa Island Improvement Association. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act ( "CEQX) 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. Adoption of Ordinance No. 2013 - 12 Disestablishing the Marine Avenue Business Improvement District May 28, 2013 Page 3 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: Tara Finnigan Public Information Manager Attachment: A. Proposed Ordinance No. 2013 -12 I1:i�71a_l.[�1��[�iy[c�i a AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REPEALING ORDINANCE NO. 95 -50 AND ORDINANCE NO. 97 -37 AND DISESTABLISHING THE MARINE AVENUE BUSINESS IMPROVEMENT DISTRICT 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, on January 26, 1998, the City Council of the City adopted Ordinance No. 97 -37 that modified the basis for levying assessments in the BID; 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 a merchant association independent of the City; WHEREAS, on April 23, 2013, the City Council of the City adopted Resolution No. 2013 -38 ( "Resolution ") declaring its intention to disestablish the BID and set a public hearing for 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, 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 to 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 WHEREAS, on May 14, 2013, a public hearing was held in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California, where evidence, both written and oral, was presented to, and considered by, the City Council during this public hearing. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Ordinance No. 95 -50 and Ordinance No. 97 -37 are hereby repealed in their entirety. In addition, the City Council repeals all ordinances and resolutions, or portions thereof, which relate to the BID. Section 2: Pursuant to California Streets and Highways Code Section 36550, the City Council hereby disestablishes the Marine Avenue Business Improvement District. Section 3: 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, if any, or any revenues derived from the sale of assets acquired with the revenues, if any, 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. Section 4: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 5: 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, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses and phrases be declared unconstitutional. Section 6: The City Council finds the approval of this ordinance is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Section 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 to have a significant effect on the environment. Section 7: 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, and it shall be effective on June 30, 2013. (CONTINUED ON NEXT PAGE] This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 14th day of May, 2013, and adopted on the 28th day of May, 2013, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS MAYO ATTEST: KEITH D. CURRY LEILANI I. BROWN, CITY CLERK APPROVED AS TQFORM: CITY ATTORNE %S OFFIOE AARON C?. HARP. CITY ATTORNEY