HomeMy WebLinkAbout05 - Intention to Renew the NBRA BID and Levy Assessments in Fiscal Year 2017-2018�EWPR CITY OF
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<,FoR�P City Council Staff Report
May 23, 2017
Agenda Item No. 5
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 Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments in
Fiscal Year 2017-2018
ABSTRACT:
The Newport Beach Restaurant Association Business Improvement District (NBRA 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.
RECOMMENDATIONS:
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 Newport Beach Restaurant Association Business Improvement District's
Fiscal Year 2016-2017 Annual Report and its Proposed Fiscal Year 2017-2018
Budget; and
c) Adopt Resolution No. 2017-38, A Resolution of the City Council of the City of Newport
Beach, California, Declaring its Intention to Renew the Newport Beach Restaurant
Association 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
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 FY 2017-2018) to
support the NBRA BID efforts.
5-1
Resolution of Intention to Renew the Newport Beach Restaurant Association 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 NBRA 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 NBRA BID Board
to outsource the financial accounting 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 NBRA 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.
11 671d 1 101 LI I
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
was formed in 1995 (Ordinance 95-55) 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 NBRA BID was established for the purpose of financing
activities and programs to benefit the businesses located and operating in the area. The
NBRA BID encompasses any food service business within the city boundaries, such as
restaurants, markets with dine -in or take-out food service, bars serving food, dessert
shops, coffee shops, juice bars, catering companies, or similar food -related business (A
boundary map is attached to the Resolution).
The NBRA 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
a public hearing (scheduled for June 13) must be held prior to the BID's renewal.
The NBRA 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 NBRA BID's FY 2016-2017 accomplishments and revenues as well as its proposed
activities and budget for the upcoming fiscal year.
Revised Organizational Structure
Following last year's renewal of the NBRA BID, the Board submitted its request for a
revised stakeholder structure and corresponding assessment levels. On September 13,
2016, the City Council approved Ordinance 2016-11 establishing the new structure and
assessments, which went into effect on October 13, 2016.
The NBRA BID's bookkeeping service provider, Newport Beach & Company (NB&Co.),
prepared and mailed the FY 2016-2017 assessments to stakeholder businesses on
October 14. Normally, the assessment invoices are mailed in July following the BID's
annual renewal, but were intentionally delayed for invoicing at the new assessment levels.
Even though the invoices were mailed three months late, approximately 77 percent of the
total assessments due had been collected by December 2016. As of March 2017,
87 percent has been collected.
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Resolution of Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments in Fiscal Year 2017-2018
Page 3
The revised NBRA BID stakeholder structure and assessments are shown below and,
upon the BID's renewal, will be used for invoicing in July.
Stakeholder -..
Full -serve restaurant (e.g., with wait staff)
$600
Fast -casual restaurant (e.g., place order at counter)
$500
Grocery or market
$500
Coffee, tea or specialty shop
$150
Dessert, bakery or treats
$150
Juice bar or smoothie shop
$150
Catering company
$150
Certified Farmer's Markets, mini -marts, yachts and charters, banquet
facilities, private membership clubs, theaters, and gas stations.
Fiscal Year 2016 Accomplishments
The NBRA BID Board has continued making progress on the priorities identified in its
2013-2016 Strategic Business Plan. Specific areas of focus include providing an annual
marketing strategy for promoting dining in Newport Beach, ongoing communication with
stakeholders and diners, targeted outreach efforts, and financial oversight and evaluation.
The main event planned by the NBRA BID is the annual Newport Beach Restaurant
Week, held each year in January. This year marked the 11th anniversary of the event. The
event metrics showed a 10 percent growth in spending over the previous year with an
estimated consumer spend of $3.4 million.
Through the strategic partnership with NB&Co., which also provides the BID with
marketing and administrative services, the NBRA BID has boosted its brand and the
destination awareness of Newport Beach dining through the dinenb.com website and its
various social channels. In addition, a weekly consumer newsletter has been instrumental
in the NBRA BID's outreach efforts to keep the subscribers engaged through the use of
blogs and stories from respected local food and lifestyle bloggers.
NB&Co. continued to evolve the consumer -facing Dine Newport Beach brand for the
NBRA BID. Print and digital advertising was used
throughout the year in a variety of media outlets with
in -market distribution as well as in local retail stores
and markets including regional hotels and concierges,
visitor centers, airports, timeshare and vacation N_W PCS RT BEACH
rentals, and luxury apartments.
In addition to its regular marketing and outreach efforts, the NBRA BID Board began
another strategic planning process to develop an updated strategic plan. A consultant
was retained through NB&Co. to assist the Board. A member survey was conducted and
an initial meeting with the consultant was held on March 22, 2017. The consultant will be
returning with a draft of the plan for the Board's review at its May 25, 2017 meeting.
5-3
Resolution of Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments in Fiscal Year 2017-2018
Page 4
In FY 2017-2018, the NBRA BID will continue its efforts on the above and the remainder
of the activities listed in the annual report including its ongoing and regular marketing and
public relations programs.
Fiscal Year 2016-2017 Operating Results
During FY 2016-2017, the NBRA BID collected approximately $198,000 in stakeholder
assessments and approximately $27,000 in stakeholder assessment late fees. The City
contributed $40,000 in funding and awarded a $9,000 grant from the City Council's
Special Event Grant funding process. In addition, the NBRA BID received $28,700 in
stakeholder participation fees for the 2017 Newport Beach Restaurant Week.
The NBRA BID's total income for FY 2016-2017 is expected to be approximately
$302,700. The year-end expenditures for the approved activities is estimated to be
$270,500. The Board has agreed to retain the surplus revenue for the new fiscal year.
The proposed operating budget for FY 2017-2018 is attached to the NBRA BID's annual
report for City Council's approval.
Future of the NBRA BID
City Council directed staff to review the future of the two remaining BIDs (NBRA and the
Corona del Mar 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 stakeholders through a survey to gauge
satisfaction and knowledge of the benefits being provided through the BID. Staff has been
working to obtain all known stakeholder 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 NBRA BID Board.
Conclusion
The NBRA 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. 2017-38, a Resolution of
Intention to Renew the Newport Beach Restaurant Association Business Improvement
District (Attachment B) and levy assessments in fiscal year 2017-2018 and setting the
public hearing for renewing the NBRA BID for June 13, 2017.
5-4
Resolution of Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments in Fiscal Year 2017-2018
Page 5
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 — NBRA BID Annual Report and Budget
Attachment B — Resolution of Intention to Renew the NBRA BID
5-5
ATTACHMENT A
RESTAURANT r
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Fiscal Year 2016-2017 Annual Report
As required by Section 36533 of the California Streets and Highways Code, the annual report of
the Newport Beach Restaurant 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, 2017 to June 30, 2018
Mission, Values and Goals
Pursuant to its current Strategic Business Plan, 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 stakeholder needs
• Ongoing calendar of events development
Community & Stakeholder Relations I Education
• Top Foodservice issues identification
• 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 Vision 2020
The NBRA BID is a strong investor and community partner marketing group extolling the
city's quality foodservice and brand experience.
• Enhanced foodservice sector brand marketing
• Increased communications of BID stakeholder benefits
• Strengthened community and industry partnerships with higher leveraged results
• Stronger selective communitywide foodservices event involvement and promotion
NBRA BID 2017 Annual Report I Page 1 of 10
5-6
Objectives
1. Promote Newport Beach stakeholders and showcase the local culinary community to
increase diner frequency and generate stakeholder sales.
2. Grow awareness of the Dine Newport Beach brand and the Newport Beach dining
destination.
3. Foster the Newport Beach culinary community to increase stakeholder engagement.
4. Leverage the Dine Newport Beach brand and assets to generate incremental revenue
for increased program marketing and promotion.
Priority Initiatives
The NBRA BID has identified and will work in Fiscal Year (FY) 2017-2018 to implement and
exceed current and long-term NBRA BID goals and objectives through key activities to
realize its vision over the next year.
Brand I Dining Destination Awareness
NBRA BID will deploy integrated online, print, broadcast, public relations and social media
campaigns throughout the year during restaurant need periods, dining holidays and local
signature culinary events.
Website
The NBRA BID website, DineNB.com, will add relevant content, improved imagery,
additional dining guides, curated dining experiences and user-friendly navigation. Blog
content will not only be provided by staff, but also by food and lifestyle bloggers and
influencers. The website will strive to improve its search engine optimization best practices
and focus on Newport Beach dining and restaurant keywords to index higher in organic
search.
Mobile
As the majority of diners use mobile devices to explore culinary offerings and events, the
NBRA BID will create an enhanced mobile experience for diners to easily search restaurants
by neighborhood, cuisine, price point and location. In addition to user-friendly access to
dining guides and curated dining experiences, the Dine NB mobile experience will be
optimized for easy online reservation capability.
Digital Marketing
The Newport Beach dining destination, culinary promotions and events will be advertised
with targeted paid search ads on the major search engines and social networks. In addition,
the digital marketing team will leverage key industry and media partners to promote the
Newport Beach dining destination, Dine NB.com and program messaging.
Email
The Dine Newport Beach weekly newsletter will deliver relevant information to diners in a
timely manner. The newsletter will provide motivating content including culinary round -ups,
dining trends, restaurant offers and promotions, and dining events. The NBRA BID will
continue to focus on acquisition strategies to grow its subscriber list, as well as leverage
partner channels to deploy program messaging.
NBRA BID 2017 Annual Report I Page 2 of 10
5-7
Social Media
Trending culinary topics, images and video content on the existing social channels will drive
followers and build online engagement. The NBRA BID will conduct strategic outreach to
key culinary, travel and lifestyle influencers in order to engage with these personalities to
broadcast to the larger social population and expand the networks.
Media Relations
The NBRA BID will develop relationships and grow engagement with food and travel writers,
influential lifestyle bloggers and media professionals to ensure that the local culinary
community, its stakeholders and their promotions and events receive editorial coverage in
local, regional and national media outlets throughout the year.
Advertising
Marketing campaigns with fresh creative and messaging will generate consumer awareness
and keep the Newport Beach dining destination, the local culinary community and
DineNB.com top of mind in the market. Advertising will appear in a variety of media
including online, print and broadcast outlets, as well as in partner channels.
Signature Event
The NBRA BID will produce Newport Beach Restaurant Week that not only promotes the
participating local restaurants, but also positions Newport Beach as Orange County's
premier dining destination.
Concierge Service
The NBRA BID will provide a toll-free phone number serviced by the Newport Beach &
Company concierge located at Fashion Island. The concierge service provides restaurant
and dining recommendations and reservation assistance.
Promotional Materials
Marketing collateral will be created to promote DineNB.com and its comprehensive online
dining guide. 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.
Video Content
Messaging and content about Newport Beach dining will be produced in partnership with
Newport Beach TV. An increased library of video content will be utilized to tell the story of
Newport Beach as a dining destination and deployed through a variety of NBRA BID and
partner channels.
Industry & Community Relations
The NBRA BID will support organizations and events that assist in promoting the local
restaurant and culinary community. Support will include cooperative marketing, online and
social media support, public relations assistance and promotion of events with local
restaurant and culinary components.
Stakeholder Communications
The NBRA BID will engage NBRA restaurants, partners and local stakeholders with email
and occasional print communications. The quarterly NBRA newsletter includes information
on BID news and meetings, promotional opportunities, as well as industry information and
events.
NBRA BID 2017 Annual Report I Page 3 of 10
5-8
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 Relationships
The NBRA BID will maintain a variety of industry relationships and memberships with, but
not limited to, Newport Beach & Company, the OC Visitors Association, California
Restaurant Association and the Newport Beach Chamber of Commerce.
Annual Meeting
The NBRA BID will hold its Annual Meeting in March at a local business, 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 & Accounting
The NBRA BID will contract with an appropriate, full-service vendor to handle all marketing,
communications, public relations, website management, administrative and accounting
services.
BID ODerational Costs
The NBRA BID will continue to pay for all its operational costs including approved contracts,
postal mailings, insurance, bank fees and other administrative expenses.
3. The Cost of These Activities is Projected as Follows:
EXPENSES
Office Supplies
Postage
Bank/Merchant Fees
Membership Dues
Governance Meeting Expenses
Independent Contractors
Bloggers
•
$950
_ $750
$2,500
$300
$3,500
$10,000
$12,000
Marketing Consultant Fees
$60,000
BID Administration Fees
$18,000
BID Accounting Services Fees
$18,000
Operational Expenses & Insurance
$12,000
Advertising - Consumer
$65,000
Community Partner Events
$3,000
Event Marketing Expenses
$45,000
Event Operating Expenses
$10,000
Research
$5,000
Collateral Production Expenses
$5,000
Social Media
$3,500
Website Maintenance
$10,000
Digital Advertising
$7,000
Media Relations
$3,000
Total Expenses $294,500.00
NBRA BID 2017 Annual Report I Page 4 of 10
5-9
4. The Method and Basis of Levying the Assessment Shall be as Follows:
The benefit assessments will be collected by the City in one installment at the beginning of
the fiscal year, and shall be pro -rated for new businesses that open during the year. The
benefit assessment will be levied upon persons conducting business within the Restaurant
Association Business Improvement District as follows:
Full Service Restaurant (e.g., with wait service)
$600
Fast Casual Eatery (e.g., order at the counter)
$500
Grocery or Market
$500
Coffee, Tea or Specialty Shop
$150
Dessert, Bakery or Treat Shop
$150
Juice Bar or Smoothie Shop
Caterinq Company
$150
$150
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 amount added shall in no event exceed fifty percent (50%) of the
annual assessment amount due.
5. Surplus Carryover from Fiscal Year 2016-2017
The NBRA BID estimates that $19,900 will be carried over from FY17 to FY18.
6. Sources of Contributions Other Than Levied Assessments
In addition to the anticipated income from the levied assessments and late fees, the NBRA
BID FY 2017-2018 budget includes $40,000 in funds from the City. NBRA estimates
receiving $30,000 in fees for special events, in addition to $9,000 in potential grant funding
from the City for a special event.
A
Stakeholder Assessments
Assessment Late Fees
•
$189,000
$26,500
Special Event Fees & Income
$30,000
City of Newport Beach Matching Funds
$40,000
City of Newport Beach Special Event Grant Funds
$9,000
Total Operating Income
$294,500.00
NBRA BID 2017 Annual Report I Page 5 of 10
5-10
7. Accomplishments in Fiscal Year 2016-2017
FY 2016-2017 was a year much success for the NBRA BID as it completed the following
projects and initiatives:
• In partnership with Newport Beach & Company, the NBRA BID continued to evolve the
consumer facing Dine Newport Beach brand with new brand creative to market
restaurants, foodservice establishments and the local culinary community to diners.
• NBRA BID continued the development and ongoing maintenance of the NBRA BID
website, DineNB.com, with stakeholder listing information, photos, menus, reviews and
online booking capabilities.
The website was updated throughout the year with robust content and videos on the
Newport Beach Culinary Community, dining guides, stakeholder offers and events,
restaurant industry news and NBRA BID information. New online dining guides created
for the website include:
o Pet Friendly Dining Guide
o Brunch Dining Guide
• NBRA BID executed three promotional campaigns throughout the year for destination
and brand awareness to communicate the unique dining options available in the city.
0 2016 Fall Campaign — Feed Your Curiosity
0 2017 Restaurant Week Campaign — Seize the Dish
0 2017 Spring Campaign — Local Color Meets Local Flavor
Print advertising appeared throughout the year in a variety of media outlets with in -
market distribution through subscribers and in local retail stores and markets, regional
hotels and concierges, visitor centers, airports, timeshare and vacation rentals and
luxury apartments.
o Newport Beach Visitor Guide
o OC Guestbook
o OC Official Visitor Map
o DiningOut Magazine
o Newport Beach Magazine
o Laguna Beach Magazine
o OC Weekly
o LA Times
o The Daily Pilot
o NB Indy
o NBFF Variety Issue
Digital advertising throughout the year helped to boost brand and destination awareness,
as well as increased website visits. Online advertising and promotions appeared in the
following media outlets
o Google Display Network
o Google AdWords
o TripAdvisor
o Facebook
o Pandora
o Digital Display for both Mobile & Desktop viewing
• The consumer newsletter boosted distribution to weekly to its diner subscriber base in
order to keep the Newport Beach dining destination and NBRA BID stakeholders top of
mind in a competitive Orange County culinary marketplace. The newsletter includes
blogs and stories from respected local food and lifestyle bloggers, as well as timely
information on stakeholder offers and local culinary events.
NBRA BID 2017 Annual Report I Page 6 of 10
5-11
• The NBRA BID conducted ongoing outreach throughout the year to food and travel
writers, lifestyle bloggers and key media in local and regional drive markets to generate
awareness for Dine Newport Beach the Newport Beach culinary community. The PR
team hosted a (41) media at a reception to kick-off Newport Beach Restaurant Week in
January at Marina Park.
• 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 NBRA BID and Dine Newport Beach provided promotional support to local culinary
events including:
o Golden Foodie Awards
o Newport Beach Wine & Food Festival
o Balboa Village Craft Beer Festival
o Newport Beach Film Festival
o Shop & Dine in CDM
o Christmas Boat Parade
o Pacific Food & Wine Classic
• The NBRA BID produced the 2017 Newport Beach Restaurant Week with (64)
participating restaurants. The event celebrated the 11th anniversary of Restaurant Week
marking "Taste the Trends." The marketing and promotional efforts included:
o Advertising — Print ads appeared in Orange County Magazine, Locale Magazine,
DiningOut Magazine, Newport Beach Magazine, The Daily Pilot, The Coastline
Pilot and Laguna Beach Magazine. Digital ads appeared online through the
Google Ad Network, Facebook, TripAdvisor, Los Angeles Times Digital Media,
GreersOC.com, Eventful, VisitNewportBeach.com, DineNB.com and OpenTable.
Broadcast advertising appeared on 104.3 MyFM, and Pandora. Paid and in-kind
advertising generated over 6 million impressions.
o PR Campaign — Editorial content, blogger coverage, calendar listings and a
reception to promote the event generated (32) articles, (100) social media posts
and over 558,000 social media impressions in media outlets In Orange County,
Los Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. On air
coverage of the event appeared on 104.3 MyFM and NBTV. The campaign
resulted in generating 301 million media impressions.
o 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 and
banners appeared throughout Newport Beach and Corona del Mar.
NBRA BID 2017 Annual Report I Page 7 of 10
5-12
o Email Blasts — Email communications went out through Dine Newport Beach,
Visit Newport Beach, OpenTable, YELP and Irvine Company email database
over 1.2 million consumers throughout LA and Orange County.
o Results — OpenTable reported a year -over -year increase of 3% in the number of
diners participating in Restaurant Week. There were over 307 million advertising
and media impressions generated for the event. The overall event resulted in an
estimated consumer spend of $3.4 million which is 10% growth over from the
previous year.
• The NBRA BID published a quarterly industry newsletter to its stakeholders that includes
timely information on industry and association news and events, as well as promotional
opportunities.
• Through the partnership with Newport Beach & Company, the NBRA BID and Dine
Newport Beach continued providing a 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 participated and/or contributed to the following community programs and
events: Newport Beach Mayor's Dinner, California Restaurant Association Orange
County Chapter, Newport Beach & Company Annual Marketing Outlook Dinner, Newport
Beach Police Appreciation Breakfast and other community events.
• The NBRA BID continued to maintain relationships with Newport Beach & Company, OC
Visitors Association, 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, communications, website management BID administrative
services and accounting services.
• The NBRA BID continued to offer credit card processing services for members to pay
their assessment and event participation fees online using a credit or debit card.
• The NBRA conducted a survey of it stakeholders and a planning session to develop an
updated three-year strategic plan for the organization.
• The NBRA BID conducted outreach and recruited new stakeholders to serve on the
NBRA BID's Board of Directors.
• The NBRA BID held its Annual Meeting at The Island Hotel, 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 2017 Annual Report I Page 8 of 10
5-13
Fiscal Year (FY) Operating Results
During FY 2016-2017, NBRA collected approximately $198,000 in stakeholder assessments
and approximately $27,000 in stakeholder assessment late fees. The City contributed $40,000
as the fourth installment of a five-year commitment to support the BID. NBRA received $28,700
in participation fees for 2017 Newport Beach Restaurant Week, and a grant of $9,000 from the
City in support of Newport Beach Restaurant Week. Total income for FY 2016-2017 is expected
to be approximately $302,700.
NBRA will spend by fiscal year end approximately $270,500 for approved activities, funded by
the FY 2016-2017 income.
Conclusion
The stakeholders of the Newport Beach Restaurant Association BID wish to thank the Newport
Beach City Council for its continued financial support and efforts on behalf of the NBRA.
NBRA BID 2017 Annual Report I Page 9 of 10
5-14
P
RESTAURANT
ASSOCIATION
Newport Beach Restaurant Business Improvement District
Operating Budget
July 1, 2017 — June 30, 2018
LABRA BID 2017 Annual Report j Page 10 of 10
5-15
Office Supplies
$950
PostageMw_
$750
................._ _.............._ ._....:____�
Bank/Merchant Fees ........................................
::..,_ m. ..
................................::.:.»:.. ..................... $2,500
Membership _Dues
$300
Governance Meetin
$3,500
Independent Contractors
$10,000
Bio ers
$12,000
Marketin Consulfiant Fees
$60,000
BID Administration Fees _ _
$18,000
BID Accountinq Services Fees
µ µ� $18,000
Operational Expenses & Insurance
$12,000
Advertising -Consumer
$65,000
Community Partner Events
$3,000
Event Marketing Expenses
$45,000
Event Operating Expenses
$10,000
Research �....�...,.....���...Ra�..
�w..
�. �. $5,000
Collateral Production Expenses
$5,000
Social Media _..
m $3,500
Website Maintenance .:..w,,.x
$10,000
$7,000
Media Relations.:.._..:..................................................,
$3,000
.. _............................._..........w__�
Total Expenses ........._$294,500.00
LABRA BID 2017 Annual Report j Page 10 of 10
5-15
ATTACHMENT B
RESOLUTION NO. 2017 - 38
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE NEWPORT BEACH
RESTAURANT ASSOCIATION 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 Newport Beach Restaurant Association Business Improvement
District ("NBRA BID") was established in 1995 pursuant to the Parking and Business
Improvement Area Law of 1989, California Streets and Highways Code, Sections 33500
of 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 NBRA BID Board of Directors, has
prepared an annual report for the 2013-2017 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 NBRA BID
for fiscal year July 1, 2017 to July 1, 2018, 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, 2017 to June 30, 2018, pursuant to the 1989
Law. Such benefit assessment shall be as follows:
CategoryStakeholder
Full -serve restaurant e.g., with wait staff)
Levy
$300
Fast -casual restaurant (e.g., place order at counter
$500
Grocery or market
$500
Coffee, tea or specialty shop
$150
bakery or treats
$150
-Dessert,
Juice bar or smoothie shop
$150
Catering company
$150
Certified Farmer's Markets, mini -marts, yachts and charters, banquet
facilities, private membership clubs, theaters, and c#as stations.
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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 NBRA 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. Brochure development and distribution;
C. Promotion of public events;
D. General promotion of restaurant trade activities;
E. Educational and training classes for members; and
F. Memberships in various organizations deemed to promote dining in
Newport Beach.
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: Any food service business within the boundaries of the city of
Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars
serving food, dessert shops, coffee shops, juice bars, catering companies, or similar food -
related 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.
Section 7: The time and place for a public hearing on the NBRA BID renewal is
set for 7 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 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
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Resolution No. 2017 -
Page 3 of 3
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.
Section 9: Further information regarding the proposed NBRA BID renewal may
be obtained at the City Manager's Office, 100 Civic Center Drive, Bay 2E, Newport Beach,
CA 92660; 949--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 change 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 23rd day of May, 2017.
Leilani I. Brown
City Clerk
Attachment: Exhibit A (Boundary Map)
Kevin Muldoon
Mayor
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
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