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HomeMy WebLinkAbout06 - Resolution of Intention to Renew the NBRABID and Levy Assessments in Fiscal Year 2015-2016CTY OF F NEWPORT BEACH " City Council Staff Report May 12, 2015 Agenda Item No. 6 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 Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2015 -2016 ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA BID) Board of Directors has submitted the BID's fiscal year (FY) 2014 -2015 Annual Report for City Council approval and has reauested renewal of the BID for FY 2015 -2016. RECOMMENDATION: a) Approve the Newport Beach Restaurant Association Business Improvement District FY 2014 -2015 Annual Report; and b) Adopt Resolution No. 2015 -32, A Resolution of the City Council of the City of Newport Beach Declaring its Intention to Renew the Newport Beach Restaurant Association 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 NBRA 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 NBRA BID's marketing and general promotion of restaurant trade activities. Last year (2014), the NBRA BID board requested additional financial assistance from the City. In an effort to help the NBRA BID achieve its marketing 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. DISCUSSION: The NBRA Business Improvement District (NBRA 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 NBRA BID territory encompasses any food service business (such as restaurants, groceries with a dine in or take -out food service, mini -marts, gas stations with take -out food service, and bars serving food) doing business within the boundaries of the city of Newport Beach. (A Boundary Map is attached to the Resolution as Exhibit A.) The NBRA 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 NBRA 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 Soring 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 NBRA 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 NBRA 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 NBRA 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. Soring 2014 In March 2014, the NBRA BID board chair met with City staff and relayed his concerns about having the BID cover those costs (approximately $40,000 in FY 2014 -2015) in relation to the NBRA BID's total annual budget of approximately $193,000. 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 NBRA BID and the Corona del Mar BID and the agreements with the BID administration consultant and the BID accounting 6 -2 consultant would be terminated. 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 In June 2013, the NBRA BID adopted a three -year Strategic Business Plan to serve as a directional document for the BID and establish the BID's strategic goals. The NBRA BID board made significant changes in 2013 to align with the strategic plan's priority initiatives. The board continued its momentum by utilizing the full strength of its marketing consultant, Newport Beach and Company (NB &Co.), to facilitate the annual goals including: • New Website — The NBRA BID launched its new, dynamic website DineNB.com that provides robust content of its member businesses including posting special offers and events, videos that highlight the culinary community, restaurant industry news and business member benefits. • Dine Newport Beach Restaurant Week — This year's signature event ran for two weeks from January 19 until February 1. It was highly successful with a record number of participating restaurants. In addition, the online reservation system OpenTable reported a 107% increase in the number of diners participating in the event. By leveraging the reach of NB &Co., the cost to produce this year's event was significantly reduced from prior years. • Marketing Efforts — NB &Co. is under contract with the City to provide marketing services for the NBRA BID; these services are directly funded by the BID. NB &Co. oversees the development of advertising campaigns, social media campaigns, and a host of public relations outreach to market dining in Newport Beach. This year, NB &Co. is amending it contract to include BID administrative services. The remainder of the FY 2015 -2016 activities listed in the annual report includes the ongoing and regular efforts of the NBRA BID for the marketing activities that occur to support the member businesses. City staff is recommending adoption of Resolution 2015 - _, a Resolution of Intention to renew the Newport Beach Restaurant Association Business Improvement District (Attachment B) and levy assessments in Fiscal Year 2015 - 2016 and setting the public hearing date for renewing the NBRA BID for May 26, 2015. ENVIRONMENTAL REVIEW: 6 -3 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 M ATTACHMENT A NEWPORT BEACH RESTAURANT ,OOASSOCIATION Newport Beach Restaurant Association Business Improvement District Fiscal Year 2014 -2015 Annual Report As required by Section 36533 of the California Streets and Highways Code, the annual report of the Newport Beach Restaurant Association Business Improvement District (NBRA BID) contains the required information as follows: 1. Proposed Changes to the District Boundary There are no changes proposed to the district boundaries 2. Improvement and Activities for the Fiscal Year of July 1, 2015 to June 30, 2016 Mission, Values and Goal Development Pursuant to its Strategic Business Plan 2013/2014- 2015/2016, the NBRA BID will continue its mission through adherence to defined values and guiding principles with the following priority initiatives from the strategic business plan: Marketing I Promotion • New marketing and media partnerships investigation • Enhanced website /social media engagement • Targeted and measurable annual marketing strategy Communication I Education • Engaging investor outreach strategy and program execution • Relevant educational program development based on member needs • Ongoing calendar of events development Community & Stakeholder Relations I Education • Top Foodservice issues identification and advocacy • Clearinghouse set -up for charitable causes • Targeted and measurable annual communications plan with appropriate messaging Financial Resources and Administration • Updated rolling year strategic plan review • Aligned program of work and budget allocations • NBRA BID fee structure evaluation and approval • Board manual development Priority Initiative Development The NBRA BID has identified and will work in Fiscal Year (FY) 2015 -2016 to implement and exceed current and long -term association goals through key activities to realize its vision over the next year. NBRA BID FY 2014 -2015 Annual Report I Page 1 of 9 M Advertising In partnership with Newport Beach & Company, the NBRA BID will continue to develop and grow its consumer facing Dine Newport Beach brand in order to enhance the marketing and promotion of its member restaurant and foodservice establishments, the local culinary community and position Newport Beach as Orange County's premier dining destination. A new advertising campaign will be created to generate consumer awareness in a variety of print and online media including newspaper and magazine outlets. Paid and earned advertising will appear throughout the year in DiningOut Magazine, the Newport Beach Visitors Guide, as well as in a variety of local and regional print and online outlets and partner publications. Promotional Materials Marketing collateral will be created to promote the Dine Newport Beach website (DineNB.com) and its comprehensive online dining guide to consumers. Collateral will be distributed throughout Orange County at airports, hotels, office centers and key visitor locations, as well as at a variety of local events throughout the year. Website The NBRA BID will continue to update the DineNB.com website with new member listing information, robust content on the Newport Beach culinary community, new dining guides, member offers and events, restaurant industry news and NBRA information and member benefits. In addition to the comprehensive, searchable restaurant guide, the website also provides online booking capabilities for both desktop and mobile devices. Also, the website will keep with Search Engine Optimization (SEO) best practices and focus on Newport Beach dining keywords to index top of organic search. Focus will be on keyword research, volume and competitor analytic tracking. Social Media The NBRA BID will continue to promote Dine Newport Beach and the NBRA BID through its social channels, as well as through the Visit Newport Beach channels, in order to increase the number of social followers and build online engagement. Messaging on restaurant offers, culinary events, dining trends and restaurant information will be regularly posted. In addition, the team will conduct strategic outreach to key culinary and dining influencers in order to engage with these personalities to broadcast to the larger social population and expand the network. Digital Marketing The DineNB.com website, restaurant promotions and strategic events will be advertised with targeted paid search ads on the major search engines and social networks. In addition, the digital marketing team will work with key industry and media partners to promote the Dine Newport Beach website and programming through partner digital channels. Public Relations (PR) The NBRA BID will continue to develop and grow strong relationships with food and travel writers, influential lifestyle bloggers and media professionals to ensure that the organization, Dine Newport Beach and the website receive editorial coverage in local, regional and national media outlets throughout the year. In addition, NBRA BID will outreach to and grow relationships with industry and community leaders and NBRA BID members in order to generate awareness of Dine Newport Beach the Newport Beach culinary community. NBRA BID FY 2014 -2015 Annual Report I Page 2 of 9 L. Signature Events The NBRA BID will continue to produce the Dine Newport Beach Restaurant Week and any other citywide event that not only promotes participating Newport Beach restaurants, but also positions Newport Beach as Orange County's premier dining destination. Local Culinary Partnerships The NBRA BID will support organizations and events that assist in promoting the local restaurant and culinary community. Support will include cooperative advertising, online and social media support, public relations assistance and presence at events with a local restaurant component. Concierge Service Through its partnership with Newport Beach & Company, the NBRA BID will continue to provide a toll -free phone number serviced by the Newport Beach & Company concierge located at Fashion Island. The Dine Newport Beach concierge provides restaurant and dining recommendations and reservation assistance. Consumer E- Newsletter Communications The NBRA BID will continue to deploy monthly consumer e- newsletters with robust content on dining trends, neighborhood round -ups, tastemaker profiles and restaurant promotions and events. Dine Newport Beach will also be a continual part of the monthly e- communications from Visit Newport Beach. Stakeholder Communications NBRA BID will continue to communicate to its members, partners and stakeholders with email and occasional print communications. The quarterly NBRA BID e- newsletter includes information on association news and meetings, promotional opportunities, as well as industry information and events. Stakeholder Activities The NBRA BID will develop stakeholder events designed to engage and educate members on NBRA activities, promotions and industry issues. These events include neighborhood mixers, workshops and seminars. Civic Event Participation The NBRA BID will participate and contribute to a variety of local civic events including the Annual Newport Beach Mayor's Dinner and the Newport Beach Police Appreciation Breakfast. Professional Relationshios The NBRA BID will maintain a variety of industry relationships with, but not limited to, Newport Beach & Company, the OC Visitors Association, Anaheim /Orange County Visitor & Convention Bureau, California Restaurant Association and the Newport Beach Chamber of Commerce. Member Benefits The NBRA BID will continue to develop a menu of member benefits that include educational seminars, industry discounts, cooperative marketing opportunities, promotions and networking opportunities available to members in good standing. NBRA BID FY 2014 -2015 Annual Report I Page 3 of 9 M. Partner Program The NBRA BID will develop a partner program for businesses or individuals who wish to connect with NBRA members and provide benefits and services to members in good standing. Annual Meeting The NBRA BID will hold its Annual Meeting at a local restaurant, where it will provide a review of the financial standing of the NBRA BID, review marketing and promotion results, discuss goals objectives and programs for the upcoming fiscal year, and obtain feedback from the general membership. BID Marketing & Administration The NBRA BID will contract with an appropriate, full- service vendor to handle all marketing, public relations, website management and administrative services. BID Accounting The City of Newport Beach (City) will provide accounting services to the NBRA BID. BID Operational Costs The NBRA BID will continue to pay for all contracts, postal mailings, bank fees and its operational costs including approved other administrative expenses. 3. The Cost of These Activities is Projected as Follows: Marketing & Promotion Including: Advertising, Promotional Materials, Website, Social Media, Public Relations, Digital Marketing, Blog Content, Consumer E- Newsletter Communications Signature Event Production & Marketing Stakeholder Communications, Activities & Meetings NBRA BID Marketing Agency, Administration & Accounting TOTAL: 4. The Method and Basis of Levying the Assessment Shall be as Follows: $ 47,000 $ 55,000 $ 2,000 $ 90,000 $194,000 The benefit assessments will be collected by the City in one installment. Assessments shall be collected at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the year. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. For establishments with greater than ten (10) employees, and whose business license tax is less than $600.00, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach Municipal Code plus an additional $65.00. For establishments with greater than ten (10) employees, and whose business license tax is $600.00 or more, the benefit assessment shall be equal to the City's usual annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach Municipal Code plus an additional $145.00. NBRA BID FY 2014 -2015 Annual Report I Page 4 of 9 M The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.08 of the Newport Beach Municipal Code, providing that the penalty amount added shall in no event exceed one hundred percent (100 %) of the assessment amount due. 5. Surplus Carryover from Fiscal Year 2014 -2015 The NBRA BID estimates that $10,000 will be carried over from FY 2014 -2015 to FY 2015 -2016. 6. Sources of Contributions Other Than Levied Assessments The NBRA BID FY 2015 -2016 budget includes $20,000 in funds from the City, and an additional estimated $15,000 in funding will be generated from Dine Newport Beach program sponsors. NBRA estimates receiving $25,000 in fees from participating restaurants for signature events, in addition to $15,000 in potential grant funding from the City for signature events. 7. Prior Year Accomplishments FY 2014 -2015 was a year of substantial growth and much success for NBRA BID as it completed the following projects and initiatives: • In partnership with Newport Beach & Company, the NBRA BID developed a new consumer facing Dine Newport Beach brand in order to market restaurants, foodservice establishments and the local culinary community to diners. • The Dine Newport Beach brand was launched and introduced to the NBRA BID membership, regional culinary community, local leaders, as well as food media and bloggers through a media campaign and event in September 2014. • The NBRA BID created a dynamic, new website at DineNB.com with detailed member listing information, photos, menus, reviews and online booking capabilities. The website also includes robust content and videos on the Newport Beach Culinary Community, dining guides, member offers and events, restaurant industry news and NBRA BID information and business member benefits. • A new creative campaign for Dine Newport Beach was developed to communicate the unique dining options available in the city. The campaign generated consumer awareness of Dine Newport Beach through the local community and in a variety of print and online media outlets. • Paid advertising appeared throughout the year in DiningOut Magazine and in the Newport Beach Visitors Guide with in- market distribution in local retail stores and markets, regional hotels and concierges, visitor centers, airports, timeshare and vacation rentals and luxury apartments. Advertising also had out -of- market reach in California Welcome Centers, at Visit Newport Beach trade shows and through interactive web versions. The NBRA BID conducted outreach to food and travel writers, lifestyle bloggers key media in local and regional drive markets to develop relationships with and in order to generate awareness for Dine Newport Beach the Newport Beach culinary community. NBRA BID FY 2014 -2015 Annual Report I Page 5 of 9 .•. • PR outreach resulted in extensive coverage of Dine Newport Beach and the NBRA BID in radio, television, print and online outlets. • Through consistent and strategic social media outreach on Facebook, Twitter and Instagram, NBRA BID experienced tremendous growth in the social channels, as well as increased online engagement with consumers and stakeholders. • The NBRA BID outreached to key culinary and dining influencers in order to engage with these personalities to broadcast to the larger social population and expand the network. • The NBRA BID conducted messaging and promotion through its social channels on restaurant offers, culinary events, dining trends and restaurant information on a weekly basis. • The Dine Newport Beach website, social promotions and signature events were also advertised with targeted paid search ads on the major search engines. • The NBRA BID launched a monthly Dine Newport Beach consumer e- newsletter in September 2014 that includes information on dining trends, restaurant promotions and events, as well as tastemaker profiles and dining guides. • The NBRA BID launched a quarterly member e- newsletter in October 2014 that goes out to the membership and includes timely information on industry and association news and events. • The NBRA BID created promotional rack cards to introduce the new Dine Newport Beach website and its comprehensive online dining guide to consumers. The cards were distributed to Newport Beach restaurants and hotels, and concierges throughout Orange County to disseminate to local diners and throughout the area. • Through the partnership with Newport Beach & Company, the NBRA BID and Dine Newport Beach established a new toll -free phone number and live concierge assistance to diners seeking information on Newport Beach restaurants through the on -site concierge desk located at Fashion Island. • The NBRA BID and Dine Newport Beach provided promotional support to local culinary events including Taste of Balboa, the Newport Beach Wine & Food Festival, and the Balboa Island Wine Walk through cooperative advertising, online and social media support and public relations assistance. • The NBRA BID produced the 2015 Dine Newport Beach Restaurant Week with 64 participating restaurants. The event marketing and promotional efforts included: Advertising — Print ads appeared in Orange County Magazine, Riviera Magazine, Locale Magazine, DiningOut Magazine, Newport Beach Magazine, OC Weekly, The Daily Pilot, The Coastline Pilot, Newport Beach and Laguna Beach Independent. Digital ads appeared online through the Google Ad Network, Facebook, TripAdvisor, Los Angeles Times Digital Media, Firebrand Media, VisitNewportBeach.com, DineNB.com and OpenTable. Paid and in- kind advertising generated over 2,000,000 impressions. NBRA BID FY 2014 -2015 Annual Report I Page 6 of 9 6 -10 PR Campaign — Editorial content, blogger coverage, calendar listings and media dinners to promote the event generated (223) placements in print, TV, radio and online media outlets In Orange County, Los Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. The campaign resulted in generating 53,201,062 impressions, a total circulation of 2,570,129 and a media value of $562,750. • Television & Radio — On -Air coverage and promotion of the event appeared on Fox 11 Good Day LA, K -EARTH 101, 98.7 The Wave, Newport Beach TV, Sunday Brunch with Tom & Lynn and the So. Cal Restaurant Show. • Social Media Campaign — Share the Dish promotion on Instagram, posts on Facebook, Twitter and Instagram and on partner social channels including Visit Newport Beach, OC Weekly, K -Earth 101.1, 98.7 The Wave, Firebrand Media. • Promotions — Over 100,000 promotional cards and posters were distributed throughout the local area in hotels, visitor centers, airport, apartment communities, at local events, participating restaurants and in City of Newport Beach water bills in December and January. Outdoor promotional signage on street pole banners appeared on PCH, Jamboree and MacArthur. • Email Blasts — Email communications went out through Dine Newport Beach, Visit Newport Beach, OpenTable and a variety of partner channels to over 750,000 consumers throughout LA and Orange County. • Results — OpenTable reported a year- over -year increase of 106.97% in the number of diners participating in Restaurant Week, and the event generated an estimated $4.67 million in consumer spending in the city of Newport Beach. • The NBRA BID participated and /or contributed to the following local events: Police Appreciation Breakfast, Newport Beach Mayor's Dinner, California Restaurant Association CEO Panel, Newport Beach Film Festival, Balboa Village Fast and other community events. • The NBRA BID continued to maintain relationships with Newport Beach & Company, OC Visitors Association, Anaheim /Orange County Visitor & Convention Bureau, California Restaurant Association and the Newport Beach Chamber of Commerce. • Newport Beach & Company is under contract with the NBRA BID to handle all marketing, public relations, website management and administrative services. • Accounting services were shifted from a consulting firm to the City of Newport Beach. • The NBRA BID worked with the City to establish credit card processing services for members to pay their assessment and event participation fees online using a credit or debit card. • The NBRA BID conducted outreach and recruited new members to serve on the NBRA BID's Board of Directors. • The NBRA BID held its Annual Meeting at a local restaurant, where it provided a review of the financial standing of the NBRA, reviewed marketing and promotion results, discussed goals objectives and programs for the upcoming fiscal year, and obtained feedback from the general membership. NBRA BID FY 2014 -2015 Annual Report I Page 7 of 9 6 -11 Fiscal Year (FY) ODeratlnQ Results During FY 2014 -2015, NBRA collected approximately $123,325 in member assessments and approximately $6,600 in member assessment late fees. The City contributed $20,000 as the second installment of a five -year commitment to support the BID. NBRA received $29,000 in participation fees for 2015 Dine Newport Beach Restaurant Week, and a grant of $16,000 from the City in support of Dine Newport Beach Restaurant Week. Total revenue for FY 2014 -2015 is expected to be approximately $197,500. NBRA will spend by fiscal year end approximately $187,500 for approved activities, funded by the FY 2014 -2015 revenues. NBRA's ending cash balance at June 30, 2015 is expected to be approximately $10,000 will carry over to FY 2015 -2016. Conclusion The members of the Newport Beach Restaurant Association thank the Newport Beach City Council for its continued financial support and efforts on behalf of the NBRA. NBRA BID FY 2014 -2015 Annual Report I Page 8 of 9 6 -12 N =WPORT BEACH RESTAURANT ASSOCIATION Newport Beach Restaurant Association Business Improvement District Operating Budget July 1, 2015 — June 30, 2016 Source of Funds Amount Member Assessments Anticipated Member Assessment Delinquencies Anticipated City Funding Anticipated Sponsorship Funds Anticipated Restaurant Event Participation Fees Anticipated City Event Grant Funding Anticipated Carryover From FY 2014 -2015 TOTAL $135,000 $(26,000) $ 20,000 $ 15,000 $ 25,000 $ 15,000 $ 10,000 $194,000 Use of Funds Amount Marketing & Promotion Including: $ 47,000 Advertising, Promotional Materials, Website, Social Media, Public Relations, Digital Marketing, Blog Content, Consumer E- Newsletter Communications Signature Event Production & Marketing $ 55,000 Stakeholder Communications, Activities & Meetings $ 2,000 BID Marketing Agency, Administration & Accounting $ 90,000 TOTAL $194,000 NBRA BID FY 2014 -2015 Annual Report I Page 9 of 9 6 -13 ATTACHMENT B RESOLUTION NO. 2015 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DECLARING ITS INTENTION TO RENEW THE NEWPORT BEACH RESTAURANT ASSOCIATION 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 Newport Beach Restaurant Association Business Improvement District ( "NBRA 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 Newport Beach Restaurant Association 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 NBRA BID Annual Report 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 NBRA BID for fiscal year 2015 -2016 pursuant to the 1989 Law. Section 2: The City Council hereby declares its intention to levy assessments for the NBRA 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. For establishments with fewer than eleven (11) employees, the assessment shall be a flat Ninety -Five Dollars ($95). B. For establishments with greater than ten (10) employees, and a license tax less than Six Hundred Dollars ($600), the benefit assessment shall be one hundred percent (100 %) of the annual business license tax as established pursuant to Chapter 5.08 of the Resolution No. 2015 - NBRA Business Improvement District 6 -14 2 Newport Beach Municipal Code plus an additional Sixty -Five Dollars ($65). C. For all businesses whose license tax is Six Hundred Dollars ($600) or greater, the benefit assessment shall be one hundred percent (100 %) of the annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach Municipal Code, plus an additional One Hundred Forty -Five Dollars ($145). 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 NBRA 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. Brochure development and distribution 3. Promotion of public events 4. General promotion of restaurant trade activities 5. Educational and training classes for members 6. Memberships in various organizations deemed to promote dining in Newport Beach. The implementation of these actions is more fully described in the NBRA BID's Fiscal Year 2015 -2016 Annual Report, which is on file with the Office of the City Clerk. Section 6: The location of the NBRA BID will remain the same: Any food service business (such as restaurants, groceries with a dine in or take -out food service, mini -marts, gas stations with take -out food service, and bars serving food) doing business within the boundaries of the City of Newport Beach is part of the NBRA BID, as set forth with greater specificity in the map attached as Exhibit A, and incorporated herein by reference. Resolution No. 2015 - NBRA Business Improvement District 6 -15 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 NBRA BID, the extent of the NBRA 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 NBRA BID which pay fifty percent (50 %) or more of the total assessments to be levied, no further proceedings to renew the NBRA 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 NBRA BID, those types of improvements or activities or benefit zones shall be eliminated. Further information regarding the proposed NBRA 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 (7) days before the public hearing. Resolution No. 2015 - NBRA Business Improvement District 6 -16 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. F-A AI1 *3n Leilani I. Brown, City Clerk Attachment: Exhibit A (Boundary Map) Edward D. Selich, Mayor Resolution No. 2015 - NBRA Business Improvement District 6 -17 Costa Mesa i 1 / I\ Newport Beach 0512912012 Res umntBif)_A.mxd Corona Del Mar I I 1 1 Newport Coast I J 1 S, 1 ion 6 -18