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HomeMy WebLinkAbout05 - Resolution of Intention to Renew the CdMBID and Levy Assessments in Fiscal Year 2015-2016CTY OF F NEWPORT BEACH " City Council Staff Report May 12, 2015 Agenda Item No. 5 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager — (949) 644 -3002, dkiff @newportbeachca.gov PREPARED BY: Mary Locey, Public Information Specialist PHONE: (949) 644 -3031 TITLE: Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2015 -2016 ABSTRACT: The Corona del Mar Business Improvement District (Corona del Mar BID) Board of Directors has submitted the BID's fiscal year (FY) 2014 -2015 Annual Report for City Council approval and has requested renewal of the BID for FY 2015 -2016. RECOMMENDATION: a) Approve the Corona del Mar Business Improvement District FY 2014 -2015 Annual Report; and b) Adopt Resolution No. 2015 -31, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2015 to June 30, 2016, and Fix the Time and Place of a Public Hearing for May 26. 2015. FUNDING REQUIREMENTS: The City of Newport Beach collects the member assessments on behalf of the Corona del Mar BID and remits the monies back to the BID for funding the activities described in the attached annual report. In addition to the member assessments, in 2013, the City Council agreed to provide $40,000 each year for five years (ending in FY 2017 -18) to support the Corona del Mar BID for marketing and public area improvements. Last year (2014), the Corona del Mar BID board requested additional assistance from the City to fund the necessary consultants that provided BID administration and accounting for an estimated total of $61,000 (this funding would have been in addition to the $40,000 for a total of $101,000 in City funding support). In an effort to help the Corona del Mar BID achieve its goals, it was agreed that the BID accounting (assessment billing, collection, financial reporting) and minimal administrative support would be brought in- house to be performed by City staff. To help offset the cost for providing these in -house services, it was agreed that the City's annual funding would be reduced to $20,000. 5 -1 DISCUSSION: The Corona del Mar Business Improvement District (Corona del Mar BID) was formed 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 Corona del Mar BID territory encompasses the area generally located on East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. (A Boundary Map is attached to the Resolution as Exhibit A.) The Corona del Mar BID is nearing the end of its FY 2014 -2015 and the Board of Directors has requested renewal of the BID for FY 2015 -2016. Pursuant to the 1989 Law, an annual report must be prepared and a public hearing must be held prior to the BID's renewal. The Corona del Mar BID Board of Directors, which serves in an advisory capacity to the City Council, has prepared and submitted the attached annual report (Attachment A) for the Council's review and approval. The report includes a summary of the BID's FY 2014 -2015 accomplishments and revenues as well as its proposed activities and budget for the new fiscal year. The report does not contain recommendations to alter the BID boundaries or the method and basis for levying assessments. BID Budget Issues SSprina 2013 On March 26, 2013, the City Council provided staff direction on the amount of administrative and financial support to provide to the City's BIDS. At that time, the City had four BIDs that were formed under the 1989 Law during the mid to late 1990s. The City had spent several years trying to identify a plan — acceptable to the BID Boards — that would lessen the amount of City staff time and resources dedicated to the BIDs and give the BIDs more autonomy. The proposals considered included disestablishing and reforming the BIDs under the Property and Business Improvement District Law of 1994 (1994 Law) which allows for longer terms and greater independence from the City. Another option for the BIDS was to disestablish to clear the way for the business owners to form merchants associations, completely independent of the City. The Balboa Village BID and the Marine Avenue BID opted to disband and form merchants associations during the summer of 2013. The Newport Beach Restaurant Association BID and Corona del Mar BID decided to maintain their status as BIDS formed under the 1989 Law. The City agreed to fund each of these four entities $40,000 per year for up to five years (through FY 2017 -2018) and an additional $10,000 each, payable directly to Newport Beach and Company (NB &Co.), for the first year only should any of them choose to work with NB &Co. on marketing and branding efforts. Because the Corona del Mar BID chose to remain a BID under the 1989 Law, the City Council and the BID Board further agreed that the BID would assume more responsibility for its own administration. The Corona del Mar BID Board agreed to assume the cost of a BID administration consultant starting in FY 2013 -2014 and the cost of the accounting services consultant starting in FY 2014 -2015. Sorina 2014 In March 2014, the Corona del Mar BID board chair met with City staff and relayed his concerns about having the BID cover those costs (approximately $61,000 in FY 2014 -2015) in relation to the Corona del Mar BID's total annual budget of approximately $213,000. He asked if the City would consider paying for these services in the new fiscal year and into the future. At the May 27, 2015 City Council meeting, staff proposed an alternative solution designed to reduce the administrative and accounting costs for both the BID and the City. It was agreed that the City would hire a part-time fiscal clerk, solely responsible for handling the bookkeeping services for the Corona del Mar BID and the Newport Beach Restaurant Association BID and the agreements with the BID administration consultant and the BID accounting consultant would be terminated. 5 -2 In exchange, the BID Board was to assume more administrative responsibility including developing its own meeting agendas, taking the meeting minutes and preparing other memos and /or reports (such as the annual report and budget). In addition, it was agreed that City staff would not routinely attend BID Board meetings and a post- meeting list of requests and follow -up items would be relayed to the City Manager's Office for action. The cost to the City for hiring a part-time fiscal clerk was estimated to be $45,000 per year. Therefore, it was agreed to reduce the City funding for the BID from $40,000 per fiscal year to $20,000 per fiscal year. Shortly after City Council's approval of the plan, the Finance Department offered to share an existing staff member to assist with the BID accounting (coordinating the assessment billing and collection efforts, accounts receivable and payable, and preparing the monthly financial reports). In addition to the BID accounting, additional staff is still responsible for a variety of BID activities including posting meeting agendas and minutes, coordinating consultant contracts and vendor services, IT related support services and general liaison support. From July 2014 through May 1, 2015 approximately 722 staff hours have been expended to both BIDs. Another part of the plan was for the City to facilitate a Board training session (paid for by the City) for the BID Board members to learn more about conducting public meetings, the Brown Act and other applicable laws and City policies. This training was completed in September 2014 and has aided the board members in successfully conducting their meetings with limited staff oversight. In addition, the City also expressed its interest in conducting a BID membership survey. Due to time constraints, a survey was not completed this past fiscal year. The goal is to have a survey developed and sent to all BID members in the next fiscal year. FY 15 Accomplishments The Corona del Mar BID has been hard at work this past fiscal year further refining it Vision 2020 revitalization projects and maintenance programs. The board developed a priority list of projects that are detailed in the attached annual report. A few highlights are noted below: . Gateway Improvement Project — This project has been a top priority for the BID for many years. The project would improve the entrance at MacArthur Boulevard and East Coast Highway with a widened sidewalk, dramatic landscape and the relocation of eight parking spaces. This past fiscal year, the BID contributed $50,000 to the City to cover part of the project's final design services. The BID and many community members are appreciative of the City Council's support proposing that project construction be part of the FY 20155 -16 Capital Improvement Program. . Marguerite Beautification Project — The Corona del Mar BID plans to pay 100% of the Phase I costs for this beautification project in FY 2015 -16 and has budgeted $32,000 toward this goal. Phase I of this beautification project includes community outreach workshops, pavers or similar treatment at the four sidewalk corners of Marguerite Avenue and East Coast Highway and street sign enhancements for the flower named streets where they intersect East Coast Highway. The Corona del Mar BID will continue to work closely with the City on project feasibility, timing and implementation. . Marketing Efforts — The Corona del Mar Chamber of Commerce (Chamber) is under contract with the City to provide marketing services for the Corona del Mar BID; these services are directly funded by the BID. The Chamber oversees the development of advertising campaigns to promote the economic growth of the business district, serves as a coordinator for the BID's holiday decor and street light banner program and coordinates the BID's website and member communications. Last year, the Chamber amended it contract to include BID administrative services and it will continue to provide these services next year. The remainder of the FY 2015 -2016 activities listed in the annual report includes the ongoing and regular efforts of the Corona del Mar BID for the general maintenance of the tree well landscaping and street furniture (benches, trash receptacles and bicycle racks) and the community outreach of events and activities that occur within the Corona del Mar BID boundaries. 5 -3 City staff is recommending adoption of Resolution 2015 - _, a Resolution of Intention to renew the Corona del Mar Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2015 - 2016 and setting the public hearing date for renewing the Corona del Mar BID for May 26, 2015. 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). ATTACHMENTS: Description Attachment A - Annual Report & Budget Attachment B - Resolution 5 -4 ATTACHMENT A Corona del Mar Business Improvement District FISCAL YEAR 2014 -2015 ANNUAL REPORT This is the annual report for the nineteenth year of the Corona del Mar Business Improvement District, as required by Section 36533 of the California Streets and Highways Code. 1. Proposed Changes to the District Boundary There are no changes proposed to the district boundaries. 2. Improvements and Activities for the Fiscal Year of July 1, 2015 to June 30, 2016 VISION 2020 - REVITALIZATION IMPROVEMENTS & MAINTENANCE The following are revitalization project improvements and maintenance programs planned for Corona del Mar Business Improvement District (CdM BID) for the fiscal year (FY) 2015 -2016. These expenditures are consistent with the CdM BID's Vision 2020 plan: 2.1 Gateway Improvement (MacArthur & PCH) Project The Gateway Entry Improvement Project has been part of the CdM BID's original Vision Plan for Corona del Mar for the past 15 years. Working with the City of Newport Beach (City), and through successful outreach efforts and design funding, the project has successfully gained community support and City Council approval. The City Council has voted to include the proposed $410,000 for the Gateway Project to be presented for final approval for the Capital Improvement Program (CIP) FY 2015 -16 budget. The CdM BID will be working with the City on the development project to create a beautiful gateway entrance at MacArthur and Coast Highway with a modified plan to widen the sidewalk, add dramatic landscape improvements and relocate eight parking spaces. 2.2 Marguerite Beautification Project The Board seeks to continue creating a sense of identity for the business district at the intersection of Marguerite and Coast Highway that would include various improvements to landscaping, streetscape and other items. The CdM BID plans to pay 100% of the Phase 1 costs for this beautification project in FY 2015 -16 and has budgeted $30,000 toward this goal. Phase 1 will include outreach workshops, pavers or enhanced intersection designs at the four sidewalk corners at Marguerite and Coast Highway and street sign enhancements for the flower named streets. Additional irrigated potted plantings are also included in this phase. 2.3 Landscaping & Tree Well Maintenance The CdM BID will continue to provide maintenance through a landscape agreement to assure the proper care, cultivation and irrigation of 180 tree well areas. The CdM BID will continue to provide oversight of the landscaping in the 5 -5 business district while working closely with the City. The CdM BID will also pay for the upkeep and repairs to the irrigation backflow valves that water the street trees. 2.4 Streetscape & Street Furniture Maintenance The CdM BID will continue to maintain and refurbish existing street furniture including trash receptacles, benches and bicycle racks to ensure quality aesthetics. In addition, the CdM BID will be working with the City on proposed changes to the municipal code evaluating the condition and placement of newspaper stands. 2.5 Parking The CdM BID will continue to study and analyze the various components affecting parking in Corona del Mar and identifying possible solutions working with property owners and City staff in regards to parking ordinances. VISION 2020 — MARKETING & MEMBER BENEFITS 2.6 Website & Communications The CdM BID has been working with an antiquated website platform for many years and has begun efforts in FY 2014 -15 to rebuild its website. During FY 2015 -16, the CdM BID will continue working by selecting a qualified website designer /developer to build a state of the art website to enhance the online branding of the business district, increase exposure to the CdM BID projects and accomplishments, and improve electronic member communications. The CdM BID shall coordinate changes to content, transfer of maintenance and hosting and related tasks with developers for a successful and useful web presents. 2.7 Marketing Media Campaigns The CdM BID will manage a Shop Local Ad Campaign for the Corona del Mar business district. The campaign will highlight seasonal shopping and unique offerings of the business district's shops and businesses. The CdM BID will maintain the existing social media platform and develop methods to improve electronic communications with its members. The social media tools allow for further promotions of shopping local campaigns and utilizing local merchants within the business district. The CdM BID will maintain the existing marketing programs and develop new strategic campaigns to promote economic growth within the business district as it does each year. The CdM BID will continue media relations with local press and community associations and maintain or develop new marketing collateral. 2.8 Corona del Mar BID Member Directory & Informational Brochures The CdM BID shall continue to co- produce and co- publish the annual business membership publication called the Corona del Mar Business Directory (Directory). The directory shall list and market the CdM BID Members in a colorful print publication campaign for shopping local. The directory is mailed to 10,000- 12,000 households in Corona del Mar and the surrounding areas. The CdM BID will also update its annual Vision 2020 brochures listing its recent Corona del Mar BID Annual Report FY 2014 -15 1 Page 2 5 -6 accomplishments and future goals. This brochure will be distributed with the annual member assessment mailings in July and throughout the year. 2.9 Christmas Walk The CdM BID will contribute funds to the Corona del Mar Chamber of Commerce (CdM Chamber) to help sponsor the annual Christmas Walk, which successfully stimulates the economic climate of the business district and provides a promotional platform for all businesses within the CdM BID boundaries and beyond. 2.10 Pacific Coast Highway Dolphin Topiary Program The CdM BID will continue to fund, coordinate and store the festive seasonal decorations of the dolphin topiaries at the intersection of Marguerite and Coast Highway. The CdM BID continues to receive countless online communications from the local community on the value of this traditional program. 2.11 Street Light Banner Program The CdM BID will continue to fund and coordinate the rotating Street Light Banner Program to highlight the annual CdM signature community events (Scenic 5K, Christmas Walk) as well as the Happy Holidays banners. The CdM BID will continue to work with the vendor and the City on permits, schedules and the installation and breakdown. The light pole banner program continues to offer the business district a sense of community spirit and promotion. 2.12 Business District Holiday Decor Program The CdM BID will continue to fund and coordinate the installation and maintenance of the annual holiday decorations within the business district. The CdM BID will work with the contract vendor and the City on annual permits, lighting maintenance and the installation and breakdown as in past years. 2.13 Marketing Consulting & Reporting The CdM BID shall continue the marketing consulting contract with the CdM Chamber to formulate, coordinate and administer the marketing efforts of the CdM BID and report to the Board routinely on the results of the marketing activities. VISION 2020 — OUTREACH 2.14 Annual Town Meeting The CdM BID will continue to hold and produce the Annual Town Meeting for Corona del Mar and coordinate a "State of the Business District Address" to its members and residents alike. The meeting serves as an outreach platform and community gathering for the business district. The annual meeting is required by the CdM BID bylaws. 2.15 Business Beautification Award Program The CdM BID will continue to pay for and manage the successful bi- monthly Business Beautification Award Program by identifying business locations within Corona del Mar BID Annual Report FY 2014 -15 1 Page 3 5 -7 the business district that have renovated, remodeled or enhanced the aesthetics of their storefronts contributing to the overall Vision 2020 Plan. Recipients of the award receive media attention and an award at a community event. 2.16 Outreach Materials & Mailings The CdM BID shall continue to communicate with the community through exhibiting at various monthly and annual events. Programs, collateral and announcements will be available, displayed and communicated through the CdM Chamber, residents association and at other community events. The CdM BID will continue to mail members that have paid their membership assessments a membership decal signifying they are in good standing with the CdM BID. VISION 2020 —ADMINISTRATION 2.17 Administrative Consulting & Reporting The CdM BID shall continue the administrative consulting contract with the CdM Chamber to formulate, coordinate and administer the CdM BID and report to the Board routinely on the results of the administrative duties. Activities include preparing and coordinating agendas, memos, communications and /or reports (preparation of annual reports & budget). Other duties include serving as liaison with City staff and providing a post- meeting action item list to the City Manager's Office. The CdM BID Board shall continue to assume some administrative responsibility including taking the meeting minutes. 2.18 Administrative Expenses The CdM BID shall continue to operate and conduct general business through the CdM Chamber which shall provide for a physical mailing address, telephone answering service, office equipment, meeting space and storage of CdM BID collateral material. 2.19 Accounting Services The City shall provide staff support, solely responsible for handling the bookkeeping services for the CdM BID. City staff will coordinate the assessment billing and collection efforts, accounts receivable and payable, prepare the monthly financial reports, and assist with posting meeting agendas and minutes. 2020 Vision Plan Revisions The CdM BID Board continues to reevaluate and revise the 2020 Vision Plan. Subcommittee meetings and workshops to develop new objectives will continue to be held. Efforts will continue to inform business and residential communities of the findings of the board 3. Estimated Cost of Improvements & Activities for FY 2015 -16 Improvements $ 37,900 Landscaping (Maintenance & Other) $ 18,980 Streetscape (Maintenance & Other) $ 6,000 Holiday Decor & Lite pole Banner Program $ 29,178 Corona del Mar BID Annual Report FY 2014 -15 1 Page 4 9% Outreach $ 1,342 Administration Expenses $ 1,400 Marketing /Member Benefit Programs /Administrator $ 59,200 Website (New) 16,000 Total $ 170,000 4. Method and Basis of Levying the Assessment Shall Continue as Follows: The CdM BID benefit assessments will be collected by the City in one installment. The benefit assessment shall be equal to one hundred fifty percent (150 %) of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Municipal Code, providing that the penalty amount added shall in no event exceed one hundred percent (100 %) of the assessment amount due. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Persons operating in 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. Assessments shall be collected in one annual installment at the beginning of the fiscal year, and be pro -rated for new businesses that open during the fiscal year. The CdM BID is considering recommending a more aggressive collection effort on delinquent member assessments. 5. Surplus Carryover from Fiscal Year 2014 -2015 It is estimated that approximately $44,000 will be carried over from FY 2014 -15 to FY 2015 -16. 6. Sources of Contributions from other than levy In addition to the annual CdM BID member assessments, the CdM BID Board assumes there will be the following additional funds or services contributed from the City to fund programs and projects and support the CdM BID for the FY 2015 -2016: a. City Standard Annual Contribution $ 20,000 b. Bookkeeping Services Provided by City Staff Prior Year Accomplishments The FY 2014 -2015 was a successful year for the CdM BID. The City contributed $20,000 as the second installment of a five -year commitment to support the CdM BID. The CdM BID successfully began work or completed projects and programs, maintained existing programs and developed new projects within the CdM business district as follows: Improvement Projects Gateway Design $ 50,000 Installed New Bike Racks & Launched Biking Program $ 13,321 Streetscape Maintenance Trash Receptacles — Powder Coating $ 6,929 Corona del Mar BID Annual Report FY 2014 -15 1 Page 5 5 -9 Landscaping Tree Well Landscaping & Maintenance & Back Flow $ 22,120 Administrative Expenses Administrative Services Consultant (Wildan) $ 2,686 Holiday Decor & Lite-pole Banner Program Dekralite Contract $ 26,679 Marketing & Member Benefits Ad Campaigns, Brochures, Website Maintenance & Hosting, $ 42,000 Business Directory, Dolphin Topiary Program, Beautification Program, Christmas Walk Sponsorship, Membership Decals, Annual Mtg, Mailings, Storage & Physical Address, Board Administration, Agendas, Reports, Communications. TOTAL $163,735 Corona del Mar BID Annual Report FY 2014 -15 1 Page 6 5 -10 Corona del Mar Business Improvement District Proposed Operating Budget Fiscal Year July 1, 2015 to June 30, 2016 Source of Funds Budget Member Assessment (net) 106,000.00 City Matching Funds 20,000.00 Carry over contribution from FY 2014 -15 44,000.00 Total Sources of Funds 170,000.00 Use of Funds Administration Mailings 1,400.00 Total Administrative 1,400.00 Improvements Gateway- MacArthur & PCH - Marguerite Project 32,000.00 Parking 3,000.00 Consulting / Studies 2,900.00 Improvements - Contingency - Total Improvements 37,900.00 Landscaping Backflow Valve 2,000.00 Landscape /Tree Wells - (Pinnacle Contract) 12,480.00 Landscaping Contingency 4,500.00 Total Landscaping 18,980.00 Streetsca pe Street Furniture (Maintenance) 1,000.00 Street Furniture (News racks /Benches) 5,000.00 Sidewalk Cleaning - Total Streetscape 6,000.00 Marketing & Administrative Services - Contract Marketing Campaigns & Programs 12,000.00 Collateral /Brochures 1,600.00 Directory 7,500.00 Christmas Walk 3,500.00 Dolphins 600.00 Beautification Award Program 600.00 Meeting facilities /Storage /Phones 3,500.00 5 -11 Social Media Annual Meeting Membership decals Website Hosting Consulting (Reporting) Contingency 2,500.00 600.00 1,200.00 2,500.00 18,100.00 5,000.00 Total Marketing 59,200.00 Website Website - Developer 10,000.00 Website - Content Development / Consulting 6,000.00 Total Marketing 16,000.00 Highway Decor- Dekralite Banner Program (Lite pole) Holiday Decor (Contract) Contingency Outreach Contributions (Sherman Gardens) Community Workshops Bad Debt Expense 5,178.00 21,000.00 3,000.00 Total Marketing 29,178.00 500.00 842.00 Total Outreach 1,342.00 Total Uses of Funds 170,000.00 Corona del Mar BID Annual Report FY 2014 -15 1 Page 8 5 -12 ATTACHMENT B RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2015 TO JUNE 30, 2016, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING. WHEREAS, the Corona del Mar Business Improvement District ( "CdM BID ") was established in 1996 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (hereinafter the "1989 Law "), which requires an annual report to be filed and approved by the City Council for each fiscal year; and WHEREAS, the Advisory Board, known as the Corona del Mar Business Improvement District Board of Directors, has prepared an Annual Report for the 2014- 2015 fiscal year which is on file in the Office of the City Clerk; and WHEREAS, on May 12, 2015, the CdM BID Annual Repoli was filed and approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby declares its intention to renew the CdM BID for fiscal year 2015 -2016 pursuant to the 1989 Law. Section 2: The City Council hereby declares the intention to levy assessments for the CdM BID for the fiscal year July 1, 2015 to June 30, 2016 pursuant to the 1989 Law. Such benefit assessment shall be as follows: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed Five Hundred Dollars ($500) per year. B. Insurance agencies that are exempt from City business license regulations shall be assessed Two Hundred Fifty Dollars ($250) per year. Resolution No. 2015 — Corona del Mar Business Improvement District 5 -13 2 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 all other businesses within the CdM BID shall be one hundred fifty percent (150 %) of the annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach Municipal Code. Section 3: The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.04 of the Newport Beach Municipal Code, providing that the penalty to be added shall in no event exceed one hundred percent (100 %) of the assessment amount due. Section 4: The benefit assessments shall be collected by the City, or its designee, in one annual installment. The assessment for new businesses shall be pro- rated according to the number of full months remaining in the CdM BID's fiscal year. Section 5: The improvements and activities to be funded by the benefit assessments shall include only the following: 1. Marketing, advertising, and public relations 2. Public area improvements and maintenance programs 3. Promotion of public events that are to take place on or in any public places in the area 4. General promotion of retail trade activities 5. Administration. The implementation of these actions is more fully described in the CdM BID Fiscal Year 2014 -2015 Annual Report, which is on file with the Office of the City Clerk. Section 6: The location of the CdM BID will remain the same: Generally located on East Coast Highway from Hazel Drive to Avocado Avenue, as set forth with greater specificity in the map attached as Exhibit A, and incorporated herein by reference. Resolution No. 2015 - Corona del Mar Business Improvement District 5 -14 3 BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on May 26, 2015 at 7 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California at which time the Council will hear all interested persons for or against the renewal of the CdM BID, the extent of the CdM BID and the specific types of improvements or activities to be funded by the benefit assessment. During the public hearing, the City Council shall hear and consider all protests against the establishment area, or the furnishing of specified types of improvements or activities within the area. Protests may be made orally or in writing, but if written shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of the businesses within the CdM BID which pay fifty percent (50 %) or more of the total assessments to be levied, no further proceedings to renew the CdM BID shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specific type or types of improvements or activity or benefit within the CdM BID, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed CdM BID renewal may be obtained at the City Manager's Office, 100 Civic Center Drive, Newport Beach, CA 92660;949- 644 -3031. The City Clerk shall cause this resolution of intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. Resolution No. 2015 - Corona del Mar Business Improvement District 5 -15 4 This resolution shall take effect immediately upon adoption. Passed and adopted by the City Council of the City of Newport Beach at a regular meeting held on the 12th day of May, 2015. r,A09 *39 Leilani I. Brown, City Clerk Attachment: Exhibit A (Boundary Map) Edward D. Selich, Mayor Resolution No. 2015 - Corona del Mar Business Improvement District 5 -16 N I�/ WIlP� —� E S 0 \ \\ \500 1,000 Name: e Corona del Mar Business Improvement District 5 -17