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Home My WebLink About05 - Resolution re NB Restaurant Assoc. BID Renewalo��EWPOR CITY OF D NEWPORT BEACH City Council Staff Report Agenda Item No. 5 June 11, 2013 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, City Manager 949 - 644 -3002, dkiff(cDnewportbeachca.gov PREPARED BY: Tara Finnigan, Public Information Manager APPROVED: i✓I v r TITLE: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in FY 2013 - 2014 ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA BID) advisory board requests renewal of the BID for FY 2013 - 2014. RECOMMENDATION: 1. Adopt Resolution 2013 - 47, a Resolution of Intention to renew the Newport Beach Restaurant Association Business Improvement District and levy assessments in Fiscal Year 2013 — 2014. 2. Set the public hearing date for June 25, 2013, where written and oral protests may be made. FUNDING REQUIREMENTS: The City of Newport Beach, or its approved designee, collects the member assessments on behalf of the NBRA BID and remits the monies back to the NBRA BID to fund the activities specifically described in the annual report filed on or before June 25, 2013. In addition to the assessments, the City's proposed FY 2013 - 2014 budget includes sufficient funding for providing $40,000 to the NBRA BID for marketing and general promotion of restaurant trade activities. The proposed budget also includes $10,000 payable to Newport Beach & Company should the BID decide to accept website, branding and other marketing assistance from the marketing organization. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in FY 2013 - 2014 June 11, 2013 Page 2 DISCUSSION: The 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 area encompasses any restaurant doing business within the boundaries of the City of Newport Beach. (Boundary Map is attached to the Resolution as Exhibit A.) The NBRA BID is nearing the end of its FY 2012 - 2013 and the advisory board has requested renewal of the BID for FY 2013 - 2014. 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 advisory board, which serves in an advisory capacity to the City Council, will prepare and submit the annual report for the City Council's review and approval. The report will include a summary of the BID's FY 2012 — 2013 accomplishments and revenues as well as its proposed activities and budget for the new fiscal year. The report will not contain recommendations to alter the BID boundaries or the method and basis for levying assessments. Currently, the NBRA BID is in the process of developing a three -year strategic plan to serve as a directional document for its ongoing effective governance and administration, determination of priority activities, and appropriate resource allocations. The NBRA BID will hold another strategic planning meeting next week and will finalize the details needed for the annual report. The report will be included on the City Council's June 25, 2013 agenda. Therefore, City staff is recommending adoption of Resolution 2013 - 47, a Resolution of Intention to renew the Newport Beach Restaurant Association Business Improvement District (Attachment A) and levy assessments in FY 2013 - 2014 and setting the public hearing date for renewing the NBRA BID for June 25, 2013. 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. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in FY 2013 - 2014 June 11, 2013 Page 3 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). Submitted by: Tara Finnigan Public Information Man ger Attachment: A. Resolution of Intention 2013 - RESOLUTION NO. 2013- 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, 2013 TO JUNE 30, 2014, 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, is preparing an annual report for the 2012 -2013 fiscal year to be filed in the Office of the City Clerk; and WHEREAS, on or before June 25, 2013, the NBRA BID annual report will be filed for consideration and approval 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 2013 -2014 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, 2013 to June 30, 2014 pursuant to the 1989 Law. Such benefit assessment shall be as follows: A. For establishments with less than eleven (11) employees, the assessment shall be a flat $95.00. B. For establishments with greater than ten (10) employees, and a license tax less than $600, 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. Resolution No. 2013 - _ NBRA Business Improvement District 1 C. The assessment for all businesses whose license tax is $600 or greater, the benefit assessment within the BID shall be 100 percent of the annual business license tax as established pursuant to Chapter 5.08 of the Newport Beach Municipal Code, plus an additional $145. Section 3: 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 to be added shall in no event exceed one hundred percent 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 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. The 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 will be more fully described in the NBRA BID's Fiscal Year 2012 -2013 annual report, to be filed with the Office of the City Clerk on or before June 25. 2013. Section 6: The location of the NBRA BID will remain the same: Any restaurant 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. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on June 25, 2013 at 7 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 100 Civic Center Resolution No. 2013 - _ NBRA Business Improvement District 3 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. 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 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 -3035. The City Clerk shall cause this resolution of intention to be published once in a newspaper of general circulation in the City at least seven days before the public hearing. 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 11 th day of June, 2013. ATTEST: Leilani I. Brown, City Clerk Attachment: Exhibit A (Boundary Map) Keith D. Curry, Mayor Resolution No. 2013 - _ NBRA Business Improvement District N i I Costa Mesa Newport Beach N Corona Del Mx i i 1 I g. -op , Newport Beach Restaurant Association 0.5 1 ` o. -' Business Improvement District M'des yTg2 12 Resaur tBID Am.0 Newport \ Coast 1 � J1