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HomeMy WebLinkAbout04 - Intention to Renew the CdM BID and Levy Assessments in Fiscal Year 2017-2018�EWPR CITY OF T - z NEWPORT BEACH <,FoR�P City Council Staff Report May 23, 2017 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Mary Locey, Management Analyst/BID Liaison mlocey@newportbeachca.gov PHONE: 949-644-3031 TITLE: Resolution of Intention to Improvement District and 2018 ABSTRACT - Renew the Corona del Mar Business Levy Assessments in Fiscal Year 2017- The Corona del Mar Business Improvement District (CdM BID) Board of Directors has submitted the BID's fiscal year (FY) 2016-2017 Annual Report for City Council approval and has requested renewal of the BID for FY 2017-2018. RECOMMENDATION: a) Determine that the 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 it will not result in a physical change to the environment, directly or indirectly; b) Approve the Corona del Mar Business Improvement District's Fiscal Year 2016-2017 Annual Report and its Proposed Fiscal Year 2017-2018 Budget; and c) Adopt Resolution No. 2017-37, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year of July 1, 2017 to June 30, 2018, and Fix the Time and Place of a Public Hearing for June 13, 2017. FUNDING REQUIREMENTS: The City of Newport Beach (City) collects the stakeholder assessments on behalf of the CdM 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 FY 2017-2018) to support the CdM BID efforts. 4-1 Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2017-2018 Page 2 In 2014, the City Council approved reducing funding to $20,000 when the CdM BID Advisory Board of Directors (Board) agreed that the BID bookkeeping services (assessment billing, collection, financial reporting) and minimal administrative support would be performed in house by City staff. Then, on June 14, 2016, the City Council approved a request from the CdM BID Board to outsource the bookkeeping services and return the City funding back to the originally agreed upon amount of $40,000 through FY 2017-2018. The City's proposed FY 2017-2018 budget includes sufficient funding to continue to support the CdM BID with a City contribution of $40,000. It will be expensed to the Professional and Technical account in the City Manager's Office, Economic Development Division, 01020202-811008. DISCUSSION: The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 (Ordinance 97-24) pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in the Streets and Highways Code Sections 36500 et seq. The CdM BID was established for the purpose of financing activities and programs to benefit the businesses located and operating in the area. The CdM BID territory encompasses the area generally located along East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. (A boundary map is attached to the Resolution.) The CdM BID is nearing the end of its FY 2016-2017 operating period and the Board, which serves in an advisory capacity to the City Council, has requested renewal of the BID for FY 2017-2018. Pursuant to the 1989 Law, an annual report must be prepared and filed with the City Council and a public hearing (scheduled for June 13) must be held prior to the BID's renewal. The CdM BID Board has prepared and submitted the attached annual report (Attachment A) for the Council's review and approval. The report includes a summary of the CdM BID's FY 2016-2017 accomplishments and revenues as well as its proposed activities and budget for the upcoming fiscal year. Fiscal Year 2016 Accomplishments The CdM BID Board has continued making progress on the priorities identified in its Vision 2020 plan. Specific areas of focus include its ongoing marketing, outreach and communication efforts, regular maintenance programs and improvement projects. Board members have been working on several projects, which are key to its continued effort to revitalize the Business District and improve the economic growth of its members. Parking has been an ongoing concern for the Board and the neighboring residents. A subcommittee has undertaken an effort to address parking and has identified several key areas to review including a shuttle program, parking wayfinding signs and working with City staff to revise parking requirements. The subcommittee and the Board will continue its efforts to improve parking in the area for the businesses, residents and visitors. 4-2 Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2017-2018 Page 3 The Board has also focused its efforts on enhancing the business district with the proposed addition of decorative street signs along East Coast Highway. The signs will include a graphic of a flower representing the various flower -named streets - Acacia, Begonia, Carnation, Dahlia, Fernleaf, Heliotrope, Jasmine, Larkspur, Marigold, Narcissus, Poinsettia and Hazel - that intersect the highway. The proposed signs are currently being designed with the respective flower details. The BID's original Vision Plan included the Gateway Entry improvements, which were recently completed under a City contract. After construction started on the project, the BID requested the installation of an electrical circuit for up -lighting and outlets to expand its annual holiday decor program. The City worked with the contractor on a change order for the improvements, the BID paid for the requested installation. The BID's FY 2017- 2018 budget includes funding for maintaining the current electrical system as well as funding for the potential of a future installation of electricity to the MacArthur Boulevard median. The CdM BID recently launched a new website that offers enhanced member services and communication. The mobile -friendly website (cdmvillage.com) provides a portal for members to pay their assessments online, it features a robust and searchable business directory, displays news, events and meetings, and social media integration. At the request of its members, the BID partnered with the CdM Chamber of Commerce to sponsor a new marketing effort, Explore CdM. The Explore CdM campaign includes street light banners, advertisements and direct mail to area residents to attract locals and visitors to the unique shopping and dining experiences in Corona del Mar. In addition, the City issued a Special Event Permit for sidewalk sales that were held on the first Saturday in September, October, November and December 2016. The participating BID members found the sidewalk sales to be successful and have requested that they continue each month. City staff is currently working with the CdM Chamber representative to review the potential for implementing monthly sidewalk sales. The remainder of the FY 2017-2018 activities listed in the annual report includes the ongoing and regular efforts of the CdM BID for the general maintenance of the East Coast Highway tree -well landscaping and street furniture (benches, trash receptacles and bicycle racks) and the marketing outreach efforts of the events and activities that occur within the CdM BID boundaries. Fiscal Year 2016-2017 Operating Results During FY 2016-2017, the CdM BID collected approximately $95,000 in member assessments, approximately $2,500 in assessment late fees and the City contributed $40,000 in funding. The CdM BID's total income for FY 2016-2017 is expected to be approximately $137,500. The year-end expenditures for the approved activities is estimated to be $125,915. It is estimated that $95,929 in retained earnings will be carried over to the new fiscal year. 4-3 Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2017-2018 Page 4 The proposed operating budget for FY 2017-2018 is attached to the CDM BID's annual report for the City Council's approval. Future of the CDM BID City Council directed staff to review the future of the two remaining BIDs (CdM and the Newport Beach Restaurant Association BID) last year during the renewal process. Staff from the City Manager's Office and City Attorney's Office have met to discuss options such as disbanding the BID, reforming the BID under the 1994 Law or leaving the BID as it is today under the 1989 Law. It was determined to start with outreach to the members through a survey to gauge satisfaction and knowledge of the benefits being provided through the BID. Staff has been working to obtain all known member email addresses, developing survey questions and has been in discussions with a survey provider. Staff's goal is to conduct the survey within the next few months. Once the survey results are received and reviewed, staff will meet again and enter into discussions with representatives from the CdM BID Board. Conclusion The CdM BID Board is aware that the City Council is seeking recommendations for alternatives for how the BID is currently formed and operated, that City staff is reviewing potential alternatives, and that this is the last year of City funding under the current agreement. Thus, City staff is recommending adoption of Resolution No. 2017-37, a Resolution of Intention to Renew the Corona del Mar Business Improvement District (Attachment B) and levy assessments in fiscal year 2017-2018 and setting the public hearing for renewing the CdM BID for June 13, 2017. 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 — CdM BID Annual Report and Budget Attachment B — Resolution of Intention to Renew the CdM BID ATTACHMENT A 40 N ^DEz Corona del Mar Business Improvement District ° ANNUAL REPORT Year -End Report for FY 2016-2017 Improvements and Activities for FY 2017-2018 This is the annual report for the 21 year of the Corona del Mar Business Improvement District (CdM BID), 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, 2017 to June 30, 2018. A. VISION 2020 - REVITALIZATION IMPROVEMENTS & MAINTENANCE The following are revitalization project improvements and maintenance programs planned for the CdM BID for the fiscal year (FY) 2017-2018. These expenditures are consistent with the BID's Vision 2020 plan. 2.1 Parking & Transportation Improvements The BID will be putting forth a concentrated effort on various methods to solve the parking problems affecting Corona del Mar's Business District. This continued effort involves study and analysis toward possible solutions working with property owners and City staff on parking requirements, employee parking solutions, parking way - finding signs, a shuttle program, and additional components for increased parking and a better overall parking environment. 2.2 Flower Street Sign Program — (PCH through the CdM Business District) The Board will be completing the Flower Street Sign Program as a carry-over project from the FY 2016-2017. These improvements shall include enhanced street signs to accentuate the popular flower streets of Corona del Mar. The Program shall include replacement of existing street signs in the Business District with taller and larger signs that would include an illustration of the flower in which the street is named. 2.3 Gateway Entry Electrical Improvements & Maintenance (MacArthur & PCH) The Gateway Entry Improvement Project has been part of the BID's original Vision Plan for Corona del Mar for the past 16 years and was recently completed. The BID requested and funded the installation of electricity along the new sidewalk area. The BID will budget for annual electrical maintenance to ensure the electricity stays in good -working order. In addition, the BID has budgeted for completion of electrical to the median in this area for enhanced gateway entry lighting. 2.4 CdM South Entry Improvements (Hazel/Poppy & PCH) The BID will be working on enhancing the south entry to Corona del Mar and has budgeted funds for project improvements, which could include an upgraded entry monument sign, lighting or other facade to welcome visitors coming to and from South County through the Corona del Mar Business District. CdM BID FY 2016-2017 Annual Report I Page 1 4-5 2.5 Landscaping & Tree Well Maintenance The BID will continue to provide maintenance through a landscape agreement to ensure the proper care, cultivation and irrigation of 180 tree well areas. The BID will continue to provide oversight of overall landscaping in the village working closely with the City. The BID will also pay for the upkeep and repair of the irrigation backflow valves that provide water to the street trees and tree wells. 2.6 Streetscape & Street Furniture Maintenance The BID will continue to maintain and refurbish existing street furniture including trash receptacles, benches, bike racks and bus stops to ensure quality aesthetics. 2.7 News Racks Program The BID has been striving to upgrade the newspaper racks throughout the Business District. The current news racks are damaged, unsafe and, in some cases, interfere with valuable parking along Coast Highway. The improvement program groundwork with the help of the City staff and the City Council, has been in the works for the past couple years. The BID had budgeted $20,000 in FY 2016-2017 toward the cost of project completion and recently the project has been halted. City staff is currently working with the publications on improving or removing the existing news racks. The BID is currently allocating budget funds in the event this project may be reinstated for the purchase and installation of the upgraded news racks. B. VISION 2020 — MARKETING & MEMBER BENEFITS 2.8 Website & Communications The BID recently launched a new informative and interactive website with features to better communicate with its members. The website includes a business directory feature to aide in marketing BID members to the public, as well as the ability to pay member assessments online. Other features include the addition of news, event and meeting postings with an integrated connection to the BID's social media. The BID will continue to maintain, update and keep optimization current for enhanced member marketing and information. 2.9 Marketing & Media Campaigns The BID has recently launched a "Shop Local" Marketing Campaign as a coordinated effort with the CdM Chamber of Commerce. This campaign involves a variety of marketing and media components to assist the Business District's retailers. Components include street light banners, direct mail, newspaper advertisement, events and more. The BID's budget includes funding to continue this campaign along with additional campaigns throughout the year. The BID will maintain the existing annual marketing programs and develop new strategic campaigns to promote economic growth within the business district. The BID will continue media relations with local press and community associations and maintain or develop new marketing collateral. 2.10 CdM BID Member Directory, Window Decals & Informational Brochures The BID shall continue to co -produce and co -publish the annual business membership promotional publication, 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, which is mailed to 10,000 households CdM BID FY 2016-2017 Annual Report I Page 2 in Corona del Mar and the surrounding areas. The BID will also update its annual Vision 2020 brochures listing the BID's recent accomplishments and future goals. This brochure will be distributed with the annual member assessment mailings in July and throughout the year. 2.11 Christmas Walk The BID will contribute funds to the CdM Chamber of Commerce to sponsor the annual Christmas Walk, which successfully stimulates the economic climate of the District and provides a promotional platform for all businesses within the BID boundaries and beyond. 2.12 Pacific Coast Hwy Dolphin Topiary Program The BID will continue to fund and coordinate the festive seasonal decorations of the Dolphin Topiaries at the intersection of Marguerite and Coast Highway. The BID continues to receive countless online communications from the local community on the value of this traditional program. 2.13 Street Light Banner Program The BID will continue to fund and coordinate the rotating Street Light Banner Program to highlight the annual CdM signature community events (Annual Town Meeting, Scenic 5K, Christmas Walk) as well as the Happy Holidays Banners and Shop Local Banners. The BID will continue to work with the contract vendor and the City on permits, schedules and installation/breakdown. The Street Light Banner Program continues to offer the Business District a sense of community spirit and promotion. 2.14 Business District Holiday Decor Program The BID will continue to fund and coordinate installation and maintenance of the annual Holiday Decorations within the Business District. The BID will work with the contract vendor and the City on annual permits, lighting, maintenance and the installation/breakdown. 2.15 Marketing Consulting & Reporting The BID shall continue the marketing consulting contract with the CdM Chamber of Commerce to formulate, coordinate and administer the marketing efforts of the BID and report to the Board routinely on the results of the marketing activities. C. VISION 2020 — OUTREACH 2.16 Annual Town Meeting The 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. The meeting serves as an outreach platform and community gathering for the BID members and local community members. The annual meeting is required by the BID bylaws. 2.17 Business Beautification Award Program The BID will continue to pay for and manage the successful bi-monthly Business Beautification Award Program by identifying business locations within the District who have renovated, remodeled or enhanced the aesthetics of their storefronts contributing to the overall Vision 2020 Plan. Recipients of the award receive media CdM BID FY 2016-2017 Annual Report I Page 3 4-7 attention and an award at a community event. 2.18 Outreach Materials & Mailings The BID shall continue to communicate with the community through exhibiting at various monthly and annual events. Programs, collateral and BID announcements will be available, displayed and communicated through the CdM Chamber of Commerce, the CdM Residents Association and at other community events. The BID will continue to mail members who have paid their assessments a membership decal signifying they are in good standing with the BID. D. VISION 2020 — ADMINISTRATION 2.19 Administrative Consulting & Reporting The BID shall continue the administrative consulting contract with the CdM Chamber of Commerce to formulate, coordinate and administer the 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 report and 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 BID Board shall continue to assume some administrative responsibility to include taking meeting minutes. 2.20 Administrative Expenses The BID shall continue to operate and conduct general business through the CdM Chamber of Commerce as the designated consultant to provide for a physical mailing address, telephone answering service, office equipment, meeting space and storage of BID collateral. 2.21 Financial Reporting, Bookkeeping and Billing Services The BID shall continue to contract with Community Business Solutions for its bookkeeping services, which includes coordination of the assessment billing, accounts receivable and payable, preparation of the monthly financial reports, and financial reporting to the City staff and BID Board. 3. Estimated Cost of Improvements & Activities for FY 2017-2018 Improvements $ 72,469 Landscaping (Maintenance & Other) $ 21,600 Streetscape (Maintenance & Other) $ 6,000 Marketing & Administration $ 75,300 Website (Hosting, Tech Support, Maintenance & Marketing) $ 8,440 Holiday Decor & Lite Pole Banner Program $ 34,000 Outreach $ 1,000 Administration & Financial Services $ 19,120 TOTAL $ 237,929 2020 Vision Plan Revisions The 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. CdM BID FY 2016-2017 Annual Report I Page 4 4. Method and Basis of Levying the Assessment The 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 5.04 of the Municipal Code, providing that the penalty amount added shall in no event exceed fifty percent (50%) 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; and 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 BID is considering a more aggressive collection effort on delinquent member assessments. 5. Surplus Carryover from Fiscal Year 2016-2017 It is estimated that approximately $95,929 will be carried over as retained earnings from FY 2016-2017 to FY 2017-2018. 6. Sources of Contributions from other than levy In addition to the annual BID assessments, the CdM BID's FY 2017-2018 budget includes $40,000 in funding from the City. 7. Prior Year Accomplishments The FY 2016-2017 was a successful year for the CdM BID although improvement projects were slow to develop. The City contributed $40,000 as the fourth installment of a five-year commitment to support the BID. The BID successfully began work or completed projects and programs, maintained existing programs and developed new projects within the CdM Business District in the estimated FY end budget as show on the following page. Fiscal Year 2016-2017 Projects and Programs Improvement Projects News Racks ($20,000 budgeted) — program denied Flower Street Sign Program Landscaping Tree -well landscaping maintenance & back flows Holiday Decor & Street Light Banner Program Dekra-lite Contract New Website Development of website for member benefits & information Marketing, Administration & Outreach Shop Local Marketing Campaign and components, BID brochures, website (developed, hosted and maintained), CdM Business Directory, Dolphin Topiary Program, Beautification Program, Christmas Walk sponsorship, membership decals, annual meeting, mailings, storage and physical address, Board administration, agendas, reports and communications Administration & Accounting Billing, financial reporting, mailings TOTAL $ 5,000 $ 14,424 $ 29,000 $ 10,000 $ 53,774 $ 13,717 $ 125,915 CdM BID FY 2016-2017 Annual Report I Page 5 ag Corona del Mar Business Improvement District Proposed Operating Budget / Fiscal Year July 1, 2017 thru June 30, 2018 Income City Matching Funds 40,000.00 Late Fees 2,000.00 Member Assessments 100,000.00 Total Income 142,000.00 Expense Highway Decor — Dekra-lite Contingency 3,000.00 Holiday Decor (Contract) 24,000.00 Banner Program (Street Light) 7,000.00 Total Highway Decor — Dekra-lite 34,000.00 Website Maintenance & Support Service Website Maintenance & Management 7,200.00 Website Hosting 240.00 Website Contingency 1,000.00 Total Website Maintenance & Support Service 8,440.00 Marketing & Administration Contingency 5,000.00 Consulting (Reporting) 23,000.00 Membership decals 1,200.00 Annual Meeting 1,000.00 Social Media/Communications 1,000.00 Office Facilities/Storage/Phone 4,000.00 Beautification Award Program 1,000.00 Dolphins 1,000.00 Christmas Walk 4,000.00 Directory 7,500.00 Collateral/Brochures 1,600.00 Marketing Campaigns & Programs 25,000.00 Total Marketing & Administration 75,300.00 Streetscape Street Furniture (Benches) 5,000.00 Street Furniture (Maintenance) 1,000.00 Total Streetscape 6,000.00 Landscaping — Pinnacle Landscaping Contingency 6,000.00 Landscaping/Tree Wells 15,600.00 Total Landscaping — Pinnacle (Contract) 21,600.00 Administration & Accounting Accounting service fee (bill.com) 2,400.00 Admin Bank Service Charge 120.00 Accounting & Financial Reporting Services 15,600.00 Mailings 1,000.00 Total Administration 19.120.00 4-10 Improvements Flower Street Signs 10,000.00 News Racks 1,000.00 Gateway Electrical Improvements 5,000.00 Gateway Electrical Maintenance 1,000.00 South Entry Improvements 5,000.00 Consulting / Studies 5,000.00 Parking & Transportation 45,469.00 Total Improvements 72,469.00 Outreach Community Workshops 1,000.00 Total Outreach 1,000.00 Total Expense 237,929.00 Net Ordinary Income (Prior Year Retained Earnings) -95,929.00 Net Income 0.00 4-11 ATTACHMENT B RESOLUTION NO. 2017 - 37 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS FOR THE FISCAL YEAR OF JULY 1, 2017 TO JUNE 30, 2018, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING WHEREAS, the Corona del Mar Business Improvement District ("CdM BID") was established in 1997 pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Sections 36500 et seq., (1989 Law"), which requires an annual report to be filed and approved by the City Council for each fiscal year; WHEREAS, the advisory board, known as the CdM BID Board of Directors, has prepared an annual report for the 2016-2017 fiscal year which is on file in the Office of the City Clerk ("Annual Report"); and WHEREAS, on May 23, 2017, the Annual Report was filed with and approved by the City Council. NOW, THEREFORE, the City Council of the City of Newport Beach ("City") resolves as follows: Section 1: The City Council hereby declares its intention to renew the CdM BID for fiscal year July 1, 2017 to June 30, 2018, pursuant to the 1989 Law. Section 2: The City Council hereby declares its intention to levy assessments for the CdM BID for the fiscal year July 1, 2017 to June 30, 2018, 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. 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. 4-12 Resolution No. 2017 - Page 2 of 3 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 fifty percent (50%) 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: A. Marketing, advertising, and public relations; B. Public area improvements and maintenance programs; C. Promotion of public events that are to take place on or in any public places in the area; D. General promotion of retail trade activities; and E. Administration. The implementation of these actions is described in the Annual Report, which is on file with the Office of the City Clerk located at 100 Civic Center Drive, Bay 2E, Newport Beach, CA 92660. 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. Section 7: The time and place for a public hearing on the CdM BID renewal is set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 13, 2017, at the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660. Section 8: 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. 4-13 Resolution No. 2017 - Page 3 of 3 Section 9: Further information regarding the proposed CdM BID renewal may be obtained at the City Manager's Office, 100 Civic Center Drive, Bay 2E, Newport Beach, CA 92660-1949-644-3031. Section 10: The City Clerk is directed to provide notice of the public hearing in accordance with Streets and Highways Code Sections 36523 and 36541. Section 11: The City Council finds the adoption of this resolution of intention 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 charge to the environment, directly or indirectly. Section 12: If any section, subsection, sentence, clause or phrase of this resolution 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 resolution. The City Council hereby declares that it would have passed this resolution, and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Section 13: This resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 23r' day of May, 2017. ATTEST. Leilani I. Brown City Clerk Attachment: Exhibit A (Boundary Map) Kevin Muldoon Mayor APPROVED AS TO FORM: CITY_ ATTORNEY'S OFFICE Aaron C. Harp City Attorney 4-14