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Home My WebLink About08 - Approval of COVID-19 Economic Relief Funding Support for the CdMBIDQ �EwPpRT O c — '9 CITY OF NEWPORT BEACH City Council Staff Report TO: FROM: PREPARED BY: PHONE: TITLE: ABSTRACT: July 14, 2020 Agenda Item No. 8 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov Melanie Franceschini, Administrative Analyst mfranceschini@newportbeachca.gov 949-644-3028 Approval of COVID-19 Economic Relief Funding Support for the Corona del Mar Business Improvement District At its May 26 meeting, the City Council expressed general support for including a one- time allocation of $40,000 in the City's Fiscal Year 2020-21 General Fund budget for COVID-19 economic relief funding for the Corona del Mar Business Improvement District (CdM BID). The funds would be not be allocated until the Council received and approved a report from the CdM BID that outlines a plan and budget for how it would use the City funding. The CdM BID Board met on June 24, 2020 and approved the COVID-19 economic relief plan and budget it developed for the Council's consideration. RECOMMENDATION: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve the Corona del Mar Business Improvement District (CdM) COVID-19 economic relief plan and budget; and c) Authorize the City Manager to allocate $40,000 in COVID-19 Economic Relief Funding Support to the CdM BID in Fiscal Year 2020-21. FUNDING REQUIREMENTS: The City's approved FY 2020-21 budget includes sufficient funding to allocate $40,000 to CdM BID in COVID-19 economic relief funding. It will be expensed to the City Manager's Office, Economic Development Division, Community Support Expense Account 01020202-821015. 8-1 Approval of COVID-19 Economic Relief Funding Support for the Corona del Mar Business Improvement District July 14, 2020 Page 2 DISCUSSION: COVID-19 Relief Funding Proposal for FY 2020-21 At the May 26, 2020 City Council meeting, the Ad Hoc Committee on Local Business Advancement (Committee) presented its recommendations to the City Council. One of the Committee's short-term recommendations was to provide City financial support in the amount of $40,000 to the Corona del Mar Business Improvement District (CdM BID) specifically for marketing and to help its member businesses reopen and recover from the financial impact of the COVID-19 pandemic during FY 2020-21. The Council conducted a straw poll and the majority supported including the COVID-19 relief funding for the CdM BID in the City's Fiscal Year 2020-21 General Fund budget. However, the Council agreed the funds should not be allocated until the CdM BID submits a plan and budget, for the Council's consideration, explaining how it would use the City funding. The CdM BID has submitted its plan (Attachment A) for City Council review and approval. The attached plan indicates that the CdM BID would use $35,000 of the City's contribution to cover the reduction in its revenues created when the BID Board agreed to lower member assessments for the current fiscal year. In its renewal process for Fiscal Year 2020-21, the CdM BID Board voted to reduce assessments from 150% of the City's business license fee to 70% of the City's business license fee, which is an approximately 53% discount per member assessment. This lowered CdM BID's assessment revenues from $90,000 to approximately $55,000, creating a revenue loss of $35,000 in the fiscal year budget. The remaining $5,000 of the City's contribution would go toward Corona del Mar COVID- 19 Care Kits, which provide businesses with reusable "CdM Strong" cloth face masks for business owners and employees, branded "Shop CdM" floor decals to promote social distancing and hand sanitizer for shop counters. The COVID-19 Care Kits will be distributed to each business in a branded, reusable CdM tote band, which will also include "Support CdM" wristbands. The CdM BID Board Working Group on Business Re -Opening & Recovery Marketing created the concept of the COVID-19 Care Kits in an effort to unify the CdM businesses for a strong and safe recovery, as well as promote shopping local to the surrounding residents and community. The branded COVID-19 Care Kits match the area's "Shop Local" campaign on the light pole banners and on social media. 8-2 Approval of COVID-19 Economic Relief Funding Support for the Corona del Mar Business Improvement District July 14, 2020 Page 3 The breakdown of the CdM BID's proposed Business Re -Opening & Recovery Plan is as follows: Reduction of BID Member Assessments COVID-19 Care Kit — Face Masks COVID-19 Care Kit — Floor Decals COVID-19 Care Kit — Hand Sanitizer COVID-19 Care Kit — Tote Bags COVID-19 Care Kit — Unity Wristbands Total Expenditure $35,000.00 $2,100.00 $1,749.86 $1,200.00 $532.39 $306.60 $40,888.85 The CdM BID has sufficient funding in its budget to cover the $888.85 beyond the City's $40,000 contribution. 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: Attachment A — Corona del Mar Business Improvement District Business Re -Opening & Recovery Plan 8-3 ATTACHMENT A Corona del Mar Business Improvement District (CdM BID) BUSINESS RE -OPENING AND RECOVERY PLAN FY 2020-2021 Submitted to: City of Newport Beach Corona del Mar BID 2855 E. Coast Hwy, Suite 101 /Corona del Mar, CA 92625 (949) 673-4050/Marketing@CdMVillage.com Message from the Board On behalf of The Corona del Mar Business Improvement District Board of Directors, we wish to thank the City Council and City Staff for all your hard work during this difficult time of COVID-19. Our local businesses have endured a great deal of hardship and we are working diligently to assist them in every way that we can. We greatly appreciate your support and business recovery assistance funding at this time. Your support allows us to continue our Shop Local Campaigns while providing our district's businesses some needed relieve. Corona del Mar Business Improvement District Business Re -Opening & Recovery Plan Step #1 — Formation of Recovery / Marketing Committee The CdM BID has formed a Business Re -Opening & Recovery Marketing Working Group to focus on short and long term needs of our businesses. Step #2 - Reduction of Member Assessment Fees COST $35,000 As described in the CdM BID's Annual Report Budget, we have voted to relieve some of the financial burden of our members by reducing their assessment fees from 150% of the City's business license fee to 70% of the City's business license fee, while continuing to enhance our "Shop Local/ Explore CdM" Marketing efforts. This reduction of assessment fees reduced our original budgeted income of $90,000 to $55,000 which was a $35,000 deficit to our overall budget. Step #3 — CdM COVID-19 Care Kit COST $5,888.85 To assist our businesses with their immediate needs of practicing good health and safety, and to assist with their costs of sanitary items, we plan to provide member businesses with a CdM Branded COVID-19 Care Kit. COVID-19 Care Kit All items in the COVID-19 Care Kit are branded with "CdM Shop Local / Explore CdM" messaging. Item 1. TOTE BAGS 2. FACE MASKS 3. SOCIAL DISTANCING FLOOR DECALS 4. GEL SANITIZERS 5. UNITY WRISTBANDS Quantity Approximate Cost 200 $532.39 600 $2,100 400 $1,749.86 200 $1,200 400 $306.60 Total: $5,888.85 TOTAL COST: $40,888.85 8-5 Corona del Mar Business Improvement District Business Re -Opening & Recovery Plan Component II CdM COVI D CARE KIT (All Items Customized for CdM Support Local Business) :, Source Quantity Material/Notes Unlit Price CoastItem Total Tote -bags Discount 200 Custom Branding $1.50 $532.39 Re -Useable Mugs From BID (Linda's Contact) Color Black or Masks Canvass 600 Blue $3.50 $2,100 and Carry Material Cotton (Jasmin's with CdM Contact) Branding Social Distance G.D. Custom Branding $1,749.86 Floor Decals Designs 400 to Match Explore $4.06 (Linda's Campaign Contact) CdM 200 Custom CdM $ 6.00 $1,200.00 Hand Sanitizer Drugs Hand Sanitizer Spray Spray 24 -Hour 400 Custom Branding $ .40 $306.60 Unity Wristband for Support Local Wristbands 5 Campaign (Linda's (Support CdM) Contact) TOTAL $5,888.85 :, CDM CUSTOM REUSABLE TOTE -BAGS 8-7 SII. d id IF re Kit complim ards of The Covona dell Mar ousin,e,sa IrnIprovem ant MO i Linda Leonhard From: customerservice@discountmugs.com on behalf of DiscountMugs Customer Service <customerservice@discountmugs.com> Sent: Wednesday, June 24, 2020 12:47 PM To: Linda Subject: Linda, thanks for your order - we appreciate your business 4* DISCUUNTMUGS" Order # DM4148669 Estimated Delivery Date: July 07 - 08, 2020 ORDERED PROOF APPROVAL PRODUCTION INSP:Et;T SHIPPING Di=:LfVERY Four order has been placed! Since you have already approved your design onfine, you will not. be receiving a. proof, and your order is on it's way into production! Item#: TOT33 - Blue Quantity: 200 Pcs Print On: Both Side Imprint Imprint: Design Lab 1 Price (200 @ 1.5 ): Impression Charge: 2 Screen Charges Subtotal: Shipping: Item Total: ORDER SUMMARY: SALES TAX 10% OFF DISCOUNT TOTAL $300.00 $180,00 $69.00 $549.00 $0.00 $549.00 $38.29 -$54.90 • Billing Address: Linda Leonhard Company Dame :Corona del Mar Chamber 2855 E COAST HWY Suite 101. CORONA DEL MAR, CA, 92625-2202 Cell Number: 9493225571 Office Number: 9496734050 Email: Linda@cdmchamber.com unsubscribe Grand Total: $532.39 Shipping Address: Company Name: Corona del Mar Chamber Linda Leonhard 2855 E COAST HWY Suite 101 CORONA DEL MAR, CA, 92625-2202 Cell Number: 9493225571 Office Number: 9496734050 Delivery Contact #:9496734050 Order Questions? Call Us: 1-800-579-7152 Place A Customer Service Ticket I Login to Your Account I View All Orders Please find our terms & conditions here for cancellation and artwork liability information. 8-10 FACE MASKS 8-11 8-12 QUOTE DATE 6/24/2020 Elise Victor Canvasandcarry.com 23046 Ave de la Carlotta Laguna Hills, CA 92653 646-334-6337 elise@canvasandcarry.com PROJECT NAME JOB SHIPPING SHIPPING DELIVERY PAYMENT DUE DATE METHOD TERMS DATE TERMS Explore CDM 3241 Delivery NA Order 6/24/2020 Due on NA Deliver 7/1/2020 Receipt QUANTITY ITEM # DESCRIPTION UNIT PRICE DISCOUNT LINE TOTAL 600 Blue Blue Face Mask with ? $4.00* $0.50 $2,100 Custom Logo ($3.50 x 600) Fabric: 100% Cotton Dimensions: 5x11.5 Total Discount $300 Subtotal $2,100 Sales Tax Total $2,100 "Cost per unit is +$1 for color mask selection, discount applied 8-13 SOCIAL DISTANCE FLOOR DECALS 8-14 #E--xPl'oreCdm We Appreciate Your Business • GD SIGNS 711 W. 17TH ST, STE G3 COSTA MESA, CA 92627 US (714)862-0676 garrett@gd-signs.com ADDRESS CORONA DEL MAR CHAMBER OF COMMERCE CORONA DEL MAR CHAMBER OF COMMERCE 2855 E. COAST HIGHWAY, STE 101 CA. CORONA DEL MAR, CA 92625 DIGITAL PRINT Social Distance Floor Decal 8" Diameter Digital print wl non slip lamination Turnaround time estimate 6-8 days. SUBTOTAL TAX Accepted By Accepted Date 400 4.06 1,624.00T 1,624.00 125.86 8-16 SANITIZER 8-17 ell�m k %wr 116w- ,& DM DRUGS Sanitizing Hand Gel Isopropyl Alcohol 750/0 9urpmse: AntisOlic Kills 99,9% germs SOFTEN HANDS CXP OATZ P412;12D7' Nef: 4 fL oz . 8-18 UNITY CUSTOM 8-19 v Step 4 Customize Your Wristbands Easy Order Form TF 3 i 'coo i Hol would you life to design? A V [),esign From Scratch Browse Pre -Designed Templates L4 8-20 Linda Leonhard From: 24HourWristbands.Com <no-reply@24hourwristbands.com> Sent: Wednesday, June 24, 2020 12:25 PM To: Linda Subject: Your 24HourWristbands.Com Order #IM9A63619628 AHOUR Hi Linda Leonhard, Thank you for placing your order with 24HourWristbands.Com1 Email Address: linda@cdmchamber.com Billing Address: Linda Leonhard 2855 E. Coast Hwy Suite 101 Corona Del Mar, CA 92625 US Order Number: IM9A63619628 Order Status: Pending Payment Method: Credit Card Order Subtotal: $338.00 Coupon Discount: -$31.40 (AUTO10) Order Total: $306.60 Printed Wristbands Size: 1 Size [+0.00] Message Style: Wrap Around Number of Imprint Colors: 3 Imprint Colors [+0.40] Customized In: China Estimated Delivery Date: Tuesday Jul 07, 2020 [+0.06] (STANDARD) (9) Proof Charge: Yes [+10.00] Details: (Adult Quantity: 400 - Color: Navy Blue - PMS: Navy Blue 282 - Hex: 002147 - Type: Solid) 1 8-21 Front Ima Notes: • If pay by credit/debit card, purchases will appear in your bank/credit card statement as Netbrands Media Corp. • If pay by check, al/ checks require order number 1M9A63619628 to be written on the check's memo. Any check withoi cleared the bank and the order is identified. • Please verify your shipping address carefully upon the receipt of this invoice. Any address change or address correctio number, which will also be automatically charged to the original payment form if the shipping carrier(s) identifies the • For orders shipping outside the U.S. - INCLUDING HAWAII/ALASKA/CANADA/PUERTO RICO 6C" local duties and/or consult with your local customs office to determine and arrange payment for these charges. We are not responsible f, Our W9 can be download at https.&24hourwristbands.com/pdf/W9.pdf If you need help regarding your order, please feel free to contact our sale representative at TOLL FREE 1-855-711-4467 or Cli( The selected delivery date is only an estimation assuming the order experiences no delay due to order waiting for approval, F invoice, you have agreed to our Terms & Conditions. Please note: This e-mail message was sent from a notification -only address that cannot accept incoming e-mail. Please do no Thanks again for shopping with us. 9MPRINTD( rn p n n 1AIM IMPRINT.0 24HourWristba nds.Com 14550 Beechnut St. Houston, TX 77083 Sale: 1-855-711-4467 Customer Service: 281-786-3764 https:H24hourwristba nds.com 8-22