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Home My WebLink About2013-71 - Declaring it's Intention to Establish a Penalty Amnesty Program to Forgive Businesses That Pay Certain Delinquent Assessments for the Corona Del Mar Business Improvement District From Liability for PenaltiesRESOLUTION NO. 2013-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO ESTABLISH A PENALTY AMNESTY PROGRAM TO FORGIVE BUSINESSES THAT PAY CERTAIN DELINQUENT ASSESSMENTS FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT FROM LIABILITY FOR PENALTIES WHEREAS, on July 14, 1997, the City Council of the City of Newport Beach ( "City Council ") adopted Ordinance No. 97 -24, establishing the Corona del Mar Business Improvement District ( "BID ") pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq.; and WHEREAS, on July 13, 1998 and August 23, 1999, the City Council adopted Ordinance No. 98 -15 and Ordinance No. 99 -18, respectively, modifying the basis for levying assessments in the BID and the penalty provisions; and WHEREAS, each year since establishment of the BID, the City Council has renewed the BID and confirmed the levy of assessments and penalties; and WHEREAS, on June 11, 2013, the City Council adopted Resolution No. 2013 -46, declaring its intention to renew the BID, levy assessments for the fiscal year July 1, 2013 through June 30, 2014, and restating the penalty provisions for delinquent payments; and WHEREAS, there are approximately 350 businesses within the BID, of which approximately 75 are delinquent in the payment of their assessments and /or penalties on their delinquencies; and WHEREAS, the total amount of delinquent assessments is approximately Fifty -One Thousand Sixty Dollars and 75/100 ($51,060.75) and the total amount of penalties incurred is approximately Forty -Two Thousand Eight Hundred Thirty Two Dollars and 56/100 ($42,832.56) through Fiscal Year 2012/2013; and WHEREAS, the City Council desires to encourage BID member businesses to pay delinquent assessments and bring their accounts up to date by offering a one -time exemption from penalties on delinquent assessments, if said delinquent assessments are paid in full within the time frame established by the City Council; and WHEREAS, after the time frame established for the penalty amnesty program has expired, the City Council desires to enforce existing provisions Ordinance Nos. 97 -24, 98 -15 and 99 -18 relating to collection of debts to the City; and WHEREAS, the City Council desires to correct a scrivener's error in Ordinance No. 98 -15 relating to the collection of unpaid BID assessments. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby declares its intention to establish an amnesty program to forgive penalties for past due BID assessments ('BID Penalty Amnesty Program ") under the following conditions: A. The BID Penalty Amnesty Program shall commence upon the effective date of the ordinance adopting the program and terminate at the close of business on February 28, 2014. B. The delinquent assessments qualifying for the BID Penalty Amnesty Program shall be for the Fiscal Years commencing July 1, 1997 and ending June 30, 2014 only ( "Amnesty Period "). C. All penalties assessed upon a delinquent BID assessment pursuant to Ordinance Nos. 97 -24, 98 -15, 99 -18 and related resolutions, shall be forgiven upon application by a business if all delinquent BID assessments for a specific business, if any, are paid in full during the BID Penalty Amnesty Program. D. The City Finance Director or his /her designee shall administer the BID Penalty Amnesty Program. Section 2: Penalty for Delinquent Payment Section 6 of Ordinance No. 98 -15 shall be amended in its entirety to read as follows: The penalty for delinquent payments shall be equal to that established for delinquent business license taxes pursuant to Chapter 5.04 of the Municipal Code, requiring that a penalty amount of twenty -five percent (25 %) shall be added on the last day of each month after the due date thereof, provided that the amount of such penalty to be added shall in no event exceed one hundred percent (100 %) of the assessment amount due. BE IT FURTHER RESOLVED, that the City Council of the City of Newport Beach shall conduct a public hearing on November 12, 2013 at 7:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, at which time the City Council will hear all interested persons for or against the establishment of the BID Penalty Amnesty Program. 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 shall contain sufficient documentation to verify business ownership within the BID. If written protests against the establishment of the BID Penalty Amnesty Program are received by the owners of businesses within the BID that owe fifty percent (50 %) or more of the total assessments levied for Fiscal Year 2013/2014, no further proceedings on that matter shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. The City Clerk shall cause this Resolution of Intention to be published once in a newspaper of general circulation in the City at least once seven (7) days before the public hearing. This City Clerk shall mail a complete copy of this Resolution of Intention by first class mail to each business owner of record within the BID within seven (7) days after its adoption. Section 3: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ( "CEQA ") pursuant to Section 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 to have a significant effect on the environment. Section 4: 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 22nd day of October, 2013. ATTEST: a '6 Leilani I. Brown, City Clerk STATE OF CALIFORNIA } COUNTY OF ORANGE CITY OF NEWPORT BEACH } i, Leilani f. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; that the foregoing resolution, being Resolution No. 2013 -71 was duly and regularly introduced before and adopted by the City Council of said City at a regular meeting of said Council, duly and regularly held on the 22nd day of October, 2013, and that the same was so passed and adopted by the following vote, to wit: Ayes: Gardner, Petros, Hill, Selich, Henn, Daigle Nays: None Absent: Mayor Curry IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 23rd day of October, 2013. X�& 6x- City Clerk Newport Beach, California (Seal)