HomeMy WebLinkAbout12 - Resolution No. 2014-6, Modifying the NB Tourism BID's Management District Plan� CITY OF
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City Council Staff Report
Agenda Item No. 12
January 28, 2014
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: City Manager's Office
Dave Kiff, City Manager
949-644-3002, dkiff@newportbeachca.gov
PREPARED BY: Tara Finnigan
APPROVED:
v
TITLE: Resolution No. 2014 - 6, Modifying the Newport Beach Tourism
Business Improvement District's Management District Plan
ABSTRACT:
On November 26, 2013, in response to a request by the Newport Beach Tourism
Business Improvement District (NBTBID) Owner's Association, the City Council initiated
the process of modifying the NBTBID's Management District Plan to shorten the
NBTBID's current term to expire on January 31, 2014 rather than on April 28, 2014. The
final step in the modification process involves conducting a public hearing and adoption
of the modified Management District Plan via Resolution No. 2014 - 6.
RECOMMENDATIONS:
1. Conduct the Public Hearing.
2. Adopt Resolution No. 2014 - 6, Modifying the Newport Beach Tourism Business
Improvement District's Management District Plan to shorten the term.
FUNDING REQUIREMENTS:
The current adopted budget includes sufficient funding for this modification to the
NBTBID's Management District Plan. The City of Newport Beach collects the member
assessments on behalf of the NBTBID and retains 0.25% of 1% of the total
assessments collected to reimburse the City for administrative costs associated with the
NBTBID.
Resolution No: 2014 - 6, Modifying the Newport Beach Tourism Business Improvement
District's Management District Plan
January 28, 2014
Page 2
DISCUSSION:
Background
The NBTBID was formed by the City of Newport Beach (City) on April 28, 2009,
pursuant to the Property and Business Improvement District Law of 1994 (the 1994
Law), Streets and Highways Code Sections 36600 et seq. In April 2012, at the request
of the NBTBID Owner's Association, the City Council amended the _NBTBID's_
Management District Plan to add another lodging business, the Newport Dunes
Waterfront Resort and Marina. The NBTBID currently has seven members including the
Fairmont Newport Beach, the Hyatt Regency Newport Beach, the Newport Dunes
Waterfront Resort and Marina, the Newport Beach Marriott Bayview, the Newport Beach
Marriott Hotel & .Spa, the Radisson Newport Beach, and the Balboa Bay Club and
Resort. The NBTBID is in the final year of its initial, five-year term and is currently
scheduled to expire on April 28, 2014.
Under an agreement with the City, Visit Newport Beach, Inc. (VNB) serves as the
NBTBID's Owner's Association. VNB oversees the NBTBID's administration and
coordinates its marketing and sales activities as prescribed by the NBTBID committee.
The committee is comprised of representatives from the seven member lodging
businesses.
In the fall of 2013, VNB informed City staff that the NBTBID member lodging businesses
support renewing the NBTBID for a 10 -year term, increasing the assessment from two.
percent (2%) to three percent (3%) of gross, short-term room rental revenues, and
adding the Island Hotel Newport Beach as a NBTBID member. This proposal was
presented to the City Council during its November 26, 2013 Study Session.
VNB, on behalf of the current and proposed NBTBID member lodging businesses,
asked the City to initiate the renewal process before the end of 2013 rather than wait
until the spring of 2014 (when the NBTBID's current term is due to expire). Because the
1994 Law does not allow for a tourism business improvement district to be renewed
until its existing term expires, the NBTBID's current term must be modified. Thus, it is
necessary to shorten the NBTBID's current term from five years to four years and nine
months in the Management District Plan. The proposed, modified NBTBID expiration
date is January 31, 2014. This item was also presented to the Council during its
November 26 Study Session.
Management District Plan Modification Process
At its November 26, 2013 Regular meeting, the City Council approved Resolution No.
2013 — 87, A Resolution of Intention to Modify the Management District Plan of the
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Resolution No. 2014 - 6, Modifying the Newport Beach Tourism Business Improvement
District's Management District Plan
January 28, 2014
Page 3
Newport Beach Tourism Business Improvement District. As required by the California
Streets and Highways Code, a copy of the resolution was mailed to every NBTBID
member lodging business and was published in the Daily Pilot newspaper.
At its December 10, 2013 meeting, the City Council conducted a public meeting to
receive public testimony on the proposed modification of the Management District Plan.
Following the public meeting, a second copy of Resolution No. 2013-87 was mailed to
the seven NBTBID member lodging businesses.
Pursuant to the 1994 Law, the final step in the modification process is for the City
Council to conduct a public hearing at which written or oral protests to the proposed,
modified plan may be received or heard. If written protests are received from the owners
or authorized representatives of businesses that will pay 50 percent or more of the
assessment, and protests are not withdrawn so as to reduce the protests to less than 50
percent, no further proceedings to modify the Management District Plan shall be taken
for at least one year. If there is no majority protest, the City Council may adopt Council
Resolution No. 2014 — 6, thereby approving the modified NBTBID Management District
Plan.
Related Items on the January 28, 2014 Council Agenda
For clarification purposes, it should be noted that there are four, VNB-related items'on
the City Council's January 28 agenda. This is the first item. If Council approves the
modification of the NBTBID's MDP to shorten its current term, than Item #13, the
renewal of the NBTBID, can be considered.
If the NBTBID renewal is approved, Item #21 pertains to amending the City's current
agreement with VNB for NBTBID management. The renewal would necessitate several
changes to that agreement. Finally, Item #20 is a proposed amendment to a separate
agreement between the City and VNB. That agreement relates to citywide tourism
promotion, branding and marketing services.
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.
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Resolution No. 2014 - 6, Modifying the Newport Beach Tourism Business Improvement
District's Management District Plan
January 28, 2014
Page 4
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 Manager
Attachment: A. Resolution No. 2014 - 6
a
Attachment A
RESOLUTION NO. 2014 — 6
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH MODIFYING THE NEWPORT
BEACH TOURISM BUSINESS IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
WHEREAS, on April 28, 2009, the City Council of the City of Newport Beach
(City) adopted Resolution No. 2009 - 21 adopting the Management District Plan and
establishing the Newport Beach Tourism Business Improvement District (NBTBID)
pursuant to the Property and Business Improvement Law of 1994, Streets and
Highways Code Sections 36600 et seq., (the 1994 Law);
WHEREAS, the Management District Plan, which sets forth the NBTBID
boundary, service plan, budget, and means of governance was amended by the City
Council in 2012 (Resolution No. 2012 - 28) upon the request of the Visit Newport
Beach, Inc. (VNB), the NBTBID's owners' association, and following a public hearing;
WHEREAS, the 1994 Law allows the City Council to modify the Management
District Plan (MDP) at the request of the Owners' Association;
WHEREAS, Visit Newport Beach, Inc. (VNB), acting as the Owner's Association,
has requested a modification of the NBTBID's Management District Plan to shorten the
NBTBID's current term;
WHEREAS, the modification of the NBTBID MDP will shorten the duration of the
NBTBID, from five (5) years to four (4) years and nine (9) months, causing the NBTBID
to expire on January 31, 2014;
WHEREAS, a copy of the Modified Management District Plan is attached hereto
as Exhibit A and incorporated herein by this reference;
WHEREAS, on November 26, 2013 the City Council adopted Resolution No.
2013-87, expressing its intention to modify the NBTBID's Management District Plan;
WHEREAS, on December 10, 2013 the City Council held a public meeting
regarding the proposed modification of the NBTBID's Management District Plan;
WHEREAS, on January 28, 2014 the City Council held a public hearing
regarding the modification of the NBTBID Management District Plan and the City
Council heard and received all objections and protests, if any; and
WHEREAS, the lodging businesses within the NBTBID will be benefited by the
activities and improvements set forth in the Modified Management District Plan.
3
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
1. The recitals set forth herein are true and correct.
2. A public hearing to consider the Modified Management District Plan was held in
the City Council Chambers on January 28, 2014 at which time written protests
were not received from the owners or authorized representatives of businesses
in the NBTBID that will pay 50 percent or more of the assessments levied.
3. The Modified Management District Plan is hereby approved and the NBTBID's
term is shortened to expire on January 31, 2014.
4. The City Clerk is directed to record in the Orange County Recorder's Office a
notice and assessment diagram, as required by Streets and Highways Code
Section 36627. The text of the recorded notice shall state that the assessment is
levied only against lodging businesses within the area of the NBTBID.
5. This resolution shall take effect immediately upon its adoption by the City Council
and the City Clerk shall certify the vote adopting the resolution.
6. The Modified Management District Plan is on file with the City Clerk, 100 Civic
Center Drive, Newport Beach, California 92660 and may be reviewed upon
request.
ADOPTED this 28th day of January, 2014.
Rush N. Hill, II
Mayor
ATTEST:
Leilani I. Brown
City Clerk
Exhibit: Modified Management District Plan
6
NEWPORT BEACH-TOU- RISM BUSINESS
LMPROVEAMNT DISTRICT
AIANAGEMENT DISTRICT PLANT
Newport Beach TourismBlD Management District Plan
NEWPORT BEACH TOURISM BID
AMENDED MANAGEMENT DISTRICT PLAN
TABLE OF CONTENTS
I.
INTRODUCTION AND OVERVIEW ................... :.......................... :...... 3
II.
WHY A TOURISM BID FOR NEWPORT BEACH? ............................................: 4
III.
'WHAT -18 A TO URISM'BUSINESS IMPROVEMENT DISTRICT? .... .......... :.:.. 4
IV.
NEWPORT BEACH TOURISM BID BOUNDARY .................................... 5
V.
SERVICE PLAN AND BUDGET............................................................ 5
VI.
TOURISM BID GOVERNANCE........................................................... S
APPENDIX I THE PROPERTY AND BUSINESS IMPROVEME, DISTRICT
LAWOF 1994 .................................. ..................... I................ 10
APP) NDIX 2—MAP OFHOTELS AND RESORTS TO BE ASSESSED WITEEI I.
,NEWPORT BEACH TBID....................................................... 26
APPENDIX3 -NEWPORT BEACH TOURISM BID ADDRESSES AND ASSESSOR
PARC.ELNUMBERS................................................................ 28
Newport Beach Tourism BID Management District Plan Page 2
8
- L INTROI)LlCTION ANIS O"YE, A2VI'EW
. y N r.
Administered by Visit NeivpnrtBeach; Inc. (Vl`[B); the hlewpprt Beach TOurtsm Btisinessdmproveirtenk'
.District' (NBTBID) is. a bu'si'ness. improvement district fomii;i pursuant to the Property .and, Businesi,
:Impr6verrient District Law of 1„994 codified m Streets and Iiighhways'Cope Section 36600eH_seq (the
"1994 .Act") which helps Ttvtd, marketing and"sales piomoti6h efforts for Newport Beach rounsm
businesses. NBTBID was formed by the. City of Newport Beach ("City') in'2009 with aniiiitial five (5)
year term 'Dueto its success to ntarketing'the'Crty's, hotels and resorts businesses; additional lodging.'
business(es) wish to join .the NBTBII, which -was amended accordingly id 2012. The member lodging,
businesses now wlsh.to renewdthe NBTBID early,
Likat on: The City of Newport Beach.
Services: Marketing and sales promotions to increase tourism and'to market Newport Beach as a
tourist,,meeting and event destination. These services .are designed to benefit the; hotels'
and resorts tliat .will be assessed within the. City and other hotel and resort' business that
mayjoin;NBTBID iii the future:
Budget: The anticipated NBTBID budget for'year one of its four-year-and-riine-month operation
anticipated a base'of approximately $1.7,millio" m
Cost: Annual. assessment rates. are 2.0% of tiansietit-(stays less than 30 days) z66rn rental.
revenue on the seven:(7) :hotels.and resorts within the City limits of Newporrlleach,, and
any hotel and resort: business that may.join NBTBID in the future. The NBTM6 shall
include the Fairmont Newport Beach, the Myatt Regency Newport Beach; the Newport
Beach Marriott Bayview, -the Newport Beach Marriott HoteL & Spa, the Radisson
Newport Beach, the' Balboa Bay Club and Resort, the Newport Dunes Waterfront Resort.
and Marina, arid any other,hotel and'resort business that may join NBTBID',in the f,ture:
Any transient .occupancy that 'is ex6mpt from the Payment of the City's Transient
Occupancy Tax shall not be assessed
Additional hotels and resorts that Wtqh to pay the assessment and receive. NBTBID
services in the'f rture may do sd -upon the approval of the VA Board, support from a
majority of the Eben existing membership of the NBTBID, and through'the execution of
An. agreement with the City approved by City Council after a noticed public hearing
consistent with Secti_ ons 36623 And 3,6637 of the 1994 Act, as the same maybe amended
from time to time.
Formation: NBTBID formation requires submittal of petitions from.'hotels and resorts representing
more. than 50% ofdhe total annual assessment followed by a City Council hearing and' cut
opportunity'for.a written protest. The assessed lodging business owners received notice
of the public meeting and the public hearing by mail. In the absence of a majority written
protest, the NBTBID was formed in 2069.
Duration; The NBTBID assessment was implemented beginning May 1, 2009, and wilt be in effect
for four years and nine months through January 31, 2014. After four years and nine
months, the petition and City Council hearing process must be repeated for the NBTBID
to be renewed. Also, once per year there is a thirty (30) day period in which owners
paying more than 501/o of the assessment may protest and terminate the district.
Newport Beach Tourism BID Management District Plan page 3
11. WHYATOURISWBIO FOR NEWPORT •BEACH?
there-areseveralreasons why fheliMID was'esfalil shed..ThOnosteompelluig reasons areas.fdllows;
I: the A\ ,ed to3ncre* Occapiurcr
The'formatiori of 'the NBTBID is a proactive effort to provide supplemental funding for,tm6sm
promotion and marketing beyond that.provided by the City of.Newpori Beach. The, funding ensures
VNB has ,adequate financing for, the, investment required to, increase occupancy in the lodging
Industry" and be competitive in the conference segment of the tourism market, The investment covers
an expanded marketing and promotional budget needed'to reach this market segment.
2. .An Op
portanityjorincreusing Ctty,TrrcReveiAtes
As occupancy rates increase, so too will the City's TOT revenue. With stable funding for VNB;
'annual 'occupancy rates .should increase signifieaptly as the new marketing and sales promotion
programs are implemented Greater occupancy will, also produce an increase in sales tax revenues
from tourist spending. TWwreprescnts a substantial reium to the City. The [formation of the NBTBID,
.in partnership with VNB; creates a stable furidingsource tied directly to tourism promoti.ori:
3. Tire Abili y to Grow tire Ecorronry wid.Jout Sribstantidl Development
VNB expects to achieve.the above levels of mvenue growth without a proportionate increase in the
"footprint" of the tourism industry infrastructure: It is anticipated that little or no development shoid
be required to raise average occupancy rates. Any development required to raise o_ccupancyrates
even more should be relativelymidor,in scope compared to, tlie-existing facilities.
III: WHAT IS A TOURISM BUSINESS IMPROVEMENT DISTRICT?.
Tourism business improvement districts (' 13&) utilize the efficiencies of private sector operation in the
market-based promotion of tourisrri districts. T Bens allow lodging and tourism -related business owner's
to organize their efforts to increase Iourisni, Tourism -related business ,owners within the district pay
assessments and those funds -are used to reimburse the cost of providing services that the businesses
desire and that benefit the assessed hotels and resorts with the district:
Pursuant to Section 36613 of the 1994 Act,NBTBID activities may include, but are not limited to:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in any public place within the District
• Promotion of tourism within the District
• 'Marketing and economic development, utcluding retail retention and recruitment
• Providing security, sanitation, graffiti removal, street and'sidewatk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Newport Beach Tourism BID Management District Plan Page 4
10
In California TB;are aforpaed;pursuant to the 1994 Law, This'law allows for the "creation o£'a special
benefit assessment distnctto-r`aise funds w'ithm,a.specifrc geographic area..to!spppQil.specifidd;activiiies..
There ane manybertiMs to Tour mi;Blbs:
Collected assessrdeots caiip6t fie vented for othet govemcdent programs;
Tourism B) Ds -are custohiii6d to f[ the needs of each, tounsm,distriet
D They;all'oiv for a witte range of services; includjng'those listed abov, ei
.➢ ToiWsbaBIDs`Are vlesignedarrd created 1y;14ose who willpay' theassessmeht;
The statue requirespetition support from hotels and resorts paying over. 50% of -the annual.
proposed assessments
➢ They.,.Or6yide a stable funding source for tourism promotion.
The 1994 Act, as aniended,'is,provided in Appendix' I of this document.
IV. NEWPORT BEACH TOURISM 81D BOUNDARY
The NBTBID includes seven (7) hotels and resorts available for public occupancy within the boiutdaues
of the City.of Newport Beach_and other hotels and resorts that may join NBTBiD'in the future. 'The
hotels and resorts to be'included,at present are the Fairmont Neiiiport Beach the Hyatt RegencyNewpert
Beach, the Newport Beach Ivlarrfoft Bayview, the Newport Beach Marriott Hotel. &. Spa, the'Radisson
Newport Beachi'the Balboa Bay.Club and Rcsoit, and the Newport Dunes Waterfront Resort a'nd Marina.
The boundary currentlyincludes seven (7).hotels and resorts. Please see the map included as Appendix 2.
A larger map is available on regdest' by calling the VNB at (949) 719-6100. A'list of properties included
in the NBTBID, including addresses and assessor parcel numbers, is included as Appendix_ 3,
V. SERVICE'PLANA'ND.BU.DGET
A. Assessment
The N15TBID'includes;hotels and resorts of 100 hotel rooms or more, existing or in the,future, available
forpublic occupahcy. witlpn- the boundaries of then City of Newport• Beach: The hotel§ 'and resorts
presently included within the NBTBID are the Fairmont Newport Beach, the I-Iyatt Regency Newport
' The term "hotel room" -shall mean any structure,, or any portion of any structure or the air space'wilhm
any structure, which is occupied or intended or designed for occupancy by transients for dweilidg, lodging
or sleeping purposes for periods of thirty'(30) days or less including a space, campsite or similar facility
which is occupied, or intended or designed for occupancy, by a recreational vehicle, camper, van, trailer,
motor home or similar vehicle used, or intended for use as a dwelling, lodging or for sleeping'purpo'ses.
The term hotel room includes any inn, residential dwelling unit, motel, group residential or lodging house,
bed and breakfast inn, single room occupancy hotel, hostel, rental unit, public or private residential club,
mobile home, time-share project, house trailer at a fixed location, or other structure or portion of a
structure.
Newport Beach Tourism BID Management District Plan Page 5
11
BeacC the.Ne "p ott Ba 'ew; the.Newport: Beach Marriott •Hote&' l Spa, the Radisson
wort Beach Macri yvi'
Newport Beach, the'Balboa Bay Club and Resort, anti the Newport Dunes ;ater&ont Resortand Manna.
,Any -.transient occupancy that is exempt from ttte,:payment ofnthe City's Ti`ansient Occupancy Tait shrill
:not. be,assessed.,
.Additional hotel -and resortfacilittes ihat'vyish to pay the assessment.andieceive NBTl3ro services in the
`fitiufemay,do so with the approval,of:the-VNB Board„support from a ntajotity of the then -existing,
,membership of the NBTBID, and through'the execution of an agreement with the City and approved by
the City Council after a noticed public hearing consisterit with Sections 36623 of the 1994 Act, As'the
same may be amended from time to time.
The amount ,of assessment, if passed on to each transient; shall be' separately stated from the amount of
Tent cbaiged and any other applicable taxes', 'and each'transient shall. receive a receipt for payment from
the business.
B. Determination of Special Benefit
State jaw',pmvides, that the expenses of the district shall. be apportioned •in proportion t6 the benefit'
.received ny assessed businesses..
A special benefit is defined•as a. particular and'disinct beneftt'over and above general benefits conferred
on thepublic at large. Conversely, a general,.benefie is, a 'benefit to businesses in the surrounding
community or a benefit to the public in general resulting;from the improvement; activity or' service to be
provided by the assessment levied., Many general benefits to the public at large are conveyed by
municipal services, such as fire protection, police services and public transit services. These se'tvicesare,
targeted to serve the public at large anti. do not confer special benefits on porticular'businesses.
The services :identified.in thisManagement Plan are designed to provide targeted. services to the assessed
hotels and. resorts. These services are tailored 'not to serve. the geheral puli]ic, but rather -to serve 'the-
spceific hotels and resorts within the District, e.g., the proposed 'activities are specifically :targeted to
increase room nights for assessed hotels :and resorts within the boutidafies of -,the District, and -are-
narrowly. tailored. For example, onlythe assessed hotels and resorts will receive sales leads from the sales
efforts paid for with TBID monies. In addition, listing on websites and collateral materials paid for with
NBTBID monies will only include the seven (7) assessed hotels and resorts that pay the assessment and
any hotel or resort business that may ioin-NBTBID in. the future.. As a result, the activities paid for from
assessment revenue are hotels and resorts services creating special benefit to those businesses. In
addition, these activities are not for the benefit of the general public and do not provide general benefit as
defined above. All general benefits (if arty) to the -surrounding community and general public are
intangible and unquantifiable. It is appropriate that these _special business-related benefits be funded
through businesses assessments.
C. Time and Manner for Collecting Assessments
The,NBTBID assessment will be implemented beginning May 1, 2009, and will continue for four years
and nine months. The City of Newport Beach will be responsible for collecting the assessment on a
monthly basis (including any delinquencies, penalties and interest) from each of the seven (7) hotels and
resorts located in the boundaries of the NBTBID. Assessments shall be collected monthly and the City
Newport Beach Tourism BID Management District Plan Page 6
12
shall: take all reasonable effort's to,conect rthe ;assessm6jats-Sf odt each lodging business. The City of
Newport -'Beach forwards the assessments to VN$ which will .babe the:responsibility to_ manage the
NBTBID programs,as provided' in the Management Dishict Plan. The City retains an up to .;_4 of.l%;(if
the total collected assessment, whether oz.not actually -:collected. to reimburse the Cityfor administrative
costs associated with the, establishment of the NBT131Ti:.
`D.. Penalties and.liiterest
Any NBTBID member failing_ to remit •the assessment, to the: City within thirty (30) days of the; time
required shall pay an initial mandatory'penalty of ten percent `(10%) of the amount of the late assessment
inaddition 'to the assessment.
AinyNBTBID member failing to remit the assessment and4he initial penalty within sixty (60) days.shall
'be liable for a second'mandatory penalty ofan additional ten percent (10%0).
In addition to'the penalties imposed, any-NBTBID member who fails to remit the assessmentshallpay
mandatory interest on ,the amount of assessment that is •due and -owing at the rate of one and one-half
percenb (1.5 %),per month, for each:month or poition of a month that the assessment remains unpaid
exclusive of penalties..
Should a NBTBID member's assessment :become :twelve "(12) months in arrears, it ;shall be sent to
collections. 'Penalties, interest and ]he.cost of collecfion '§.ball become part of the assessment required to
be paid.
Late paymentsi penalties, and interest shall be deposited 'hd used in the same manner as the basic
assessment. The cost of collection, if any,, shall be used to pay the collections agency.
E. ServiceYlan]udgetand Programs to:hePro' yided:
Servicc.Plan Budget Stiumary CgNndarYgars 2009=2014
The summery of the calendar year 2009 (year one) "service plan budget for the NBTBID.is provided
below. The total four year and 'nine niontli'iiiiprovement and service plan budget is projected to be
appro)dmately $l.7 tnillionannually, or.$8.075 miltio'n through 2014.
The assessments collected will fund the'directsales efforts for group sales to generate room nights at the
seven (7) participating hotels and resorts that mayj o in NBTBID in the future,'indluding:
• Promotion of public events which benefit businesses in the District
• Furnishing of music in any public place within the District
• Promotion of tourism within the District
• Marketing and economic development, including retail retention turd recruitment
• Providing security, sanitation, graffiti removal, street and sidewalk cleaning, and other
municipal services supplemental to those normally provided by the City
• Activities which benefit businesses located in the District
Additionally, the.Citysshall retain up to % of 1% ofthe total collected assessment, whether or not actually
collected, to reimburse the City for administrative costs associated with the establishment of the NBTBID.
Newport Beach Tourism BID Management District Plan Page 7
13
T. Annual Service Plan:
Annually,. a service plan budget'ii developed and approved by the'VNB Board The budget exhibit below'
Was for calendar.year 200 (year (jt}e)Tbbhudgef,also includes a portion tore0 genctes an$'renetival
of.ihe District.Should the VNB Boafd approve, funds may be appropriated for the renewal efforts ,If
there aYe funds xemahung.at the, end ofthe NBTB]D "term and'the:assessed hotels and iesoits'e)loose•to,
renew; these remaining funds could be transferred to the renewed District, If there afe fundssemaiiiing at,
the end of. the District and'hotels and resorts choose not to renew, any remaining finds wilt be spent
consistent with this Management District Plan,
This 'service plan will only include hotels and resorts 'that ate participating in the NBTBID..
rF:lM;i�4C�XCe
Newport Beach Tourism BID
Annualtudget, Year One
Sales and Marketing programs and activities will be
designed to attrect.ovemight groups. These activities may
include;
d. 'SalesNlissions
• Trade Shows
• Sales Calls.
•
Sales Manager
ADVERTISING AND COMMUNICATION $498,583
.Advertising end Communication activities will build
gfeater'awa]reness of the participating hotels.- These
.activities `may9ncludei
• Trade Promotion
• '.Online Advertising
• Trade:Advertising
Cri'YOF NEWPORT BEACH'ADivIiNISTRATION FEE $4,250
The. City charge % of 1"/0
TOTAL TOURISM DISTRICT BUDGET $1,71)0,00
VI. BID GOVERNANCE
A. Newport Beach, Tourism BID Corporation Governance
VNB shall serve as the Owners' Association for the NBTBID. The Executive Director or Tourism
Director of VNB is under contract with the City to administer and implement the activities_ specified in
this plan and shall be charged with the day-to-day'operations of the TourismBID.
Newport Beach. Tourism BID Management District Plan Page 8
14
APPENDICES
Newport Beach Tourism BID Management District Plan Page 9
15
DWI
The Property and Business L_ W6Vv mint District Law of 1994
'Newport Beach Tourism BID Management District Plan Page 10
16
WAIS Document Retrieval
•CALIFORNIA CODES.
STREETS AND.NIGBWAYS CODE.
SEGTYON, 36600736604
36600_ This part shall -be known. and may be cited, as the, "ProperEy.
and. Business Improvement Diitrict-!Aw. of 1994."
36601. The Legislature finds and `declares all of the following:
(a) Businesses located and operating within ,the ibusiness districts
of this state's communities are•econcm cally disadvantaged, are
underutilized, and are unable .16 attract customers due --to.inadequate
facilities, services; and activities in the business districts.
(b) It is in the public interest to promote the economic
revitalization and physical 'daibtehance 'of -the business districts of
its cities In order to create ]obs, attract aew'businesses, and
prevent the erosion of the business districts.
(c) It is of particular local benefit'to. allow cities to fund
business related improvements,. maintenance, and activities -through
the levy of assessments upon the businesses or real property that
benefits from those improvements.
(d) Assessments levied for the purpose of providing improvements
.and promoting activities that benefit real property or businesses are
not .taxes for the general'banefit,,of a,city, but are -assessments €or
the improvements and activities'vihich conferspecialbenefits upon
the -real property 6r businesses for which the improvements and
activities are provided.
36602. The purpose of this part is to supplement previously enacted
provisions of law that authorize cities to levy assessments within a
business improvement area: This part does not affect or limit any'
other'' provisions ,of law authorizing .or,providingfor,,the furnishing
of improvements or act�:vities. or '.thd raising ofrevenuefor these
purposes.
36603. nothing in this part is intendedto pieempt the authority of
a, charter city to adopt ordinances providing' Por a different method
of levying assessments for simlar or additional purposes from those
set forth in this part. -A property and business improvement district
created pursuant to this pa -ft is expressly ekempt from the provisions
of the -Special Assessment I.nvestigation, Limitation and Majority
Protest Act of 1931 (Division 4- (commencing with Section 2000)).
36603.5. Any provision in this part that conflicts with any other
provision of law shall prevail over the other provision of law.
36604: This part is intended to'be construed liberally and, if any
provision is held invalid, the remaining provisions shall remain in
full force and effect. Assessments levied under this part are not
special taxes.
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CA..LrroxrizA CODES
+STRCETS' -AND kcI WAYS CODE
'SECTION 3E606-3••
o6I6
'36666, "Assessment'means a levy. for the -purpose of+acquiring,
_ •_�construct'in_g, installing, or•'maintainino :nprovements and promcE_ ng _
activities which will'benefit.the properties or'businesses located.
within a -,property and. .business improvement di'strlct.,.
36607; "Business" means all types, of businesses an_d.includes,
financial institutions and.p=ofessions.
36606. "City" means a city, county, city •and•county, or. an agency
or entity created pursuantto. Articled (commencing with Section
.b500) of Chapter 5 of Division '7 of Title 1 of the Government Code;
tte public member agencies of �7hich includes only cities, counties,
,or a,city and -county, or'the .State of California.
36609.: "City -council" means the city council of .a -city or the board
pf supgrvisois 'of a county, or the agency, commission, or board
created-puesuantto a joint pbwer's agreement and Which a a city
within the meaning of this part.
36610. "�Smprovb.ment" meanathe acquisition, construction,
instailation; or maintenance of any kangible. property.with an
.estimated useful like:of five years or -more includ nq,..biit not
limit,po tb, the following;
(a) :Parking facilities.
(b).-Benghes, booths, kiosks, :display lases, .pedestrian shelters
;and signs.
16) Trash receptacles and 'public restrooms.
(d) Lighting andheat ing facilities..
(e) .Decorations.
(f) .Parks.
(g) Fountains;
(h) Planting areas.
(i) -Closing, opening, Widening, or narrowing of -existing streets.
(j) Facilities or equipment, or both, to enhance security of
persons and property within the area.
(k) Ramps, sidewalks,plazas, and pedestrian malls..
(1) Rehabilitation or removal of existing structures.
3'6611. "Property ;and business improvement district-," or "district,"
means a property and businessimprovement districtestablished
pursuant to this part.
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36612; 11 Pro means •-real property situated mithin,a 4tstricE.
'36613: ''!Act'ivities!''means,-.but is not'lim'.ited to; ?li,ofthe
tfollowing,:
(a) .Piomotion =of' ublic: eve_ -
p; nts which -benefit* businesses pr r real.
property In 'the dist"rict,
(b�) Furnishing of :music in any'p6blic-p1666 Within the district.
(c) promotion of tourism. within the district.
(d) Marketing and economic development,.including-retail ,retention
and recruitment.
(e.) Providing security, sanitation, graffiti removal,, street and
sidewalk cleaning, and other municipal services supplemental td those
normally provided by the-muncipality.
(f) Activities which benefit businesses -and zeal property located
in the district.
36619: "Management district plan" or"plan'! means .a proposal as
defined in Section 36622.
36614.5. "Owners'.association" ineans-a priyate'nonpeofit entity
'that is under contract with .acity to-administer.be, implement
-activities and improvements specified in -the management district
_plan. An owners ' -association may be .an existing- nonprofit entity or a
newly formed nonprofit entity. An owners' association is a private
entity and may not be considered a public entity for any purpose, nor
may its board Inembers or staff be considered to be.public officials
n
for any purpose, Notwithstanding this .sectio, an owners' association
shall comply with the Ralph M. grown.Act (Chapter .9 (commencing with
Section 54950) of Part 1 of Division 2 of Title .5 of the Government
code), at ,all times when matters" within the -sub: -ccs matter of the
district are heardr discussed, or deliberated, antl'witb the
California Public Records Act (Chapter -3.5• (commeicing.with Section
6M)of Division 7 of Title 1 of the Government code), for all
documents relating to ,activities of the district.
.36615. "Property owner"- means any person shown as the owner -of land
on the last equalized assessmentroll or otherwise :known to be th@
owner of land by the city council. 'Business owner" means any person
recognized by the city as the owner of the business. "Owner" means
either a business owner or a property owner. The city council.has.no
obligation to obtain other information asto the ownership of land or
businesses, .and its determination of ownership shall be final and
conclusive for the purposes of this part. Wherever this part requires
the signature of the property owner, the. signature of the authorized
agent of the property owner shall be sufficient.. Wherever this part
requires the signature of the business owner, the signature of the
authorized agent of the business owner shall be sufficient.
3661,6. "Tenant" means an occupant pursuant to a lease of commercial
space or a dwelling unit, other than an owner.
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CALIFORNIA CODES
$TREETS'AND.FiZGHWAY9 CODE'
'SECTION 36617
36611. This part pcovides_an ilternative.me'thod of financing
certain improvements and activities,4The ,provisions of this part
shall not affect or limit any 'other pzbvisions of law authorizing or
providing for the furnishing. of improvem-eht"s or activiti'e_s or the
raising of revenue for these purposes. Bvery'improvement area
established,pursuant to ttie P=1]dng and Business "Improvement Area Law
of 1989 (Part 6 (commencing with'Section°36500] of this division) is
valid and effective and is unaffected by this part.
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CALIFORNIA,.CODES:-
�STREETS AND BZG9W0YS CODE
'SECTI02) :36620-36.630'
'36620. A property and business .;improvement'district'may be,
established.as;provided.in-this chapter:
36620:3_. A county may not form a districtwithinthe territorial
Jurisdiction of .a :cty without the consent .of the city council ,of
that.'city.. A 'city'.may:not:form a district 'within the unincorporated.
territory of a county without the consent of the board.ofsupervisors
.of that county: A�•city may -not form a district wi.thin the
.terriiorial•juiisdiction of 'another city without, the consent of the
city council of the other city.
36621:(s) Upon the submission. of a written petition; 'signed by the
property or business owners in.the proposed district• who will pay
more th'ari50 percent of the asses sments%proposedto be levied,; the
city "council may initiate proceed ngg, to-foiin a dist.rict.by'the.
•adopt,'on'of d resolution expressing' Sts intentiop'to Xo3rma district.
The amount 'of assessment attributable to property or a'business
owned by the•same property or lousiness owner "that is in",excess of 40
percent. of: the amouni: of. all assessments proposed tdbe levied; shall
not be included in -determining whether" the petition. is signed by
property -or business owners who will pay more than 50 percent'of the
total amount of assessments proposed to belepied.
(b) The petition -of property or business'awners.req .red. under
subdivision (a) shall include a summary•,, of.the •manageme'nt district
plan. That summary shall include 911 of -the following;
(1).A'map,showng .the boundaries of the district:
(2)•.Informa.tion. specifying where the complete management district
plan--can'be obtained..
('3). Information specifying that the complete management distiict
plan shall be furnished upon request.
(c)The resolution .of intention described in subdivision (a) shall
coitain_,all of the .following:
(1) A brief description of the proposed activities and
improvements, the amount of the proposed assessment, a statement as
to whether the assessment will be levied on property or businesses
within the district, a statement as to whether bonds will be issued,
and a description of the exterior boundaries of the proposed
district. The descriptions and statements do not need to be detailed
and shall be sufficient if they enable an owner to generally identify
the nature and extent of the improvements and activities and the
location and -extent of the proposed district.
(2) A time and place for a public hearing on the establishment of
the property and business improvement .district and the levy of
assessments, which shall be consistent with the requirements of
Section 36-623.
36622. The management district plan shall contain all of the
following:
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(a), ifthe assessment will be levied on property, a -inap, of the
district_ in'buffidient detail to locate each parcel of property'and,
,if businesses are to be.assessedi :each business`,uithip -the ',dis iict.
:If the assessment will be levi:ed'on businesses, a'sa`V,tthai identifies
_the -d striiJioundaries in.suffidient,deiaii.to•allow a biisi_ne'ss,
owner 'td xeisonably -determine wb&ihei a business is located within
the district boundaries. If the assessment will be levied on property
and :businesses; -.a map of the district -in sufficientdetail*to locate
each parcel of "property and to allow a business .oyr._er-to reasonably
determine whether a•business is located within the`.district
bobndaries.
(b)' The name. of the proposed district.
(c).A description of the boundaries of the district, including the
boundaries of benefit zones, proposed for establishment or extension
in-& manner sufficient to identify the affected lands and businesses
included.. The boundaries of a proposed, property assessment district
shall not overlap with the boundaries of snottier existing property
assessment district created pursuant to this part: :This part. -does not
prohibit the.bobndaries of adistrict created pursuant .to. this ,part
to overlap with other assessment districts established pursuantto
other provisions of law, including, but not limited to,. the Parking
and 'Business Improvement Area Law of 1989 ,(Part 6, (6ommencin4 with
Section 36500)). This partdoes not prohibit the boundaries o£ a
business assessment district created pursuant to this part to .overlap
with another business assessment district created pursuant to this
part. This part does not prohibit the boundaries of a business
assessment district created. pursuant to this part to 'overlap with a
property assessment district created pursuant to this part._
(d) The imorovements and activities proposed for each year of
operation of the district and the maximum cost thereof.,
(e) The total annual amount proposed to be .expended for
,improvements, maintenance and operations, and debtservice in each
year of operation of the district.
(f) The proposed source or sources of financing; including the
proposed method and basis of levying the assessment in sufficient
detail ,to allow each property or, business owner,to calculate the
amount of the assessment to be levied against his gr'fier`property or
'business.:. The plan also shall state whether bonds.wiLl;be issued to
finance improvements.
,(g) The time and manner of collecting the assessments,
(h) The specific number -of years in which assessments will be
levied. In a. new district, the maximum -number of years shall be five.
Upon renewal, a district shall have a term not to exceed. 10 years.
Notwithstanding these limitations, a,district created pursuant to•
.this part to finance capital improvements with bonds may levy
assessments until the ma ximum.maturity-of the bonds. The management
district plan may set forth specific increases in assessments for
each year of operation of the district:
(i) The proposed time for implementation and completion of the
management district plan.
(j) any proposed rules and regulations to be applicable to the
district.
(k) A list of 'the properties or businesses to be assessed,
including the assessor's parcel numbers for properties to be
assessed, and a statement of the method or methods by which the
expenses of a district will be imposed upon benefited real property
or businesses, in proportion to the benefit received by the property
or business, to defray the cost thereof, including operation and
maintenance. The plan may provide that all or any cl=_ss,or category
of real property which is exempt by law from real property taxation
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May nevertheless be included Hithin -the boun$aries "of the -district
but shall .riot.be subject to assessment on real property.
(lj p4y other item. or mat ten regtiired,`to be' incorporatedtherein
ey the city council., n
36623, -ta) If a city council proposes td levy a new -or increased
property assessment, the notice and'protest and hearing procedure
sh'al3-comply with Section 53753of th'e.Gove"rnment Code:
(bj If a city council proposes to. -levy a new or incr.-eased business
assessment, the notice and protest and hearing procedure.'shall
comply with Section 54954.6 of the Government 'Code, except that
notice shall be mailed 'to the owners of the businesses proposed to be
`assessed. A protest may, be made orally Grin writing by any
interested person. .Every written protest shall be filed viith the
clerk at or before the time fifred.for the public'hearing. The city
council may waive any Irregularity
y in ',the form -c
or--ontent of any
written protest. A written protest may be withdrawn in writing at any
time before the conclusion of the. publichearing: Each written
protest shall contain a description of the business in which the.
person subscribing the protest. is interested sufficient to identify
-the business and, if a person subscribing is not shown on the.
official records of the city as the owner of the business; the
protest shall contain or be accompanied by written -evidence that. the
'person subscribing is the owner of the business or the atithorized
-representative. A written protest that does not -comply with this
section shall not be counted in determining a majority protest. this,
written protests are received from the owners or au£hoiized.
-representativesof businesses in 'the proposed district that will pay
50 percent•or more of the assessments proposed to be levied and
protests are not withdrawn so as to reduce the protests to less than
50 percent, no further proceedings to levy the ,proposed. assessment
against such businesses, as contained in the resolution of intention,
shall be taken. .for a. period of one year from the date sof the finding
of•a majority protest by the city .,council.
36624. At the conclusion of the .public hearing ,to establish the
district, the city council. may adopt, -revise, change, reduce, or
modify the :proposed assessment. or the typeor types of. improvements
;and activities to be funded with the: revenues -from theassessmenis..
_Proposed assessments may only be idvised by'reduci'iig -any or all of
them. At the public hearing, the city council may only make changes
in, to, or from the boundaries of the proposed property and business
improvement -district that will exclude territory that will not
benefit from the proposed improvements or activities. Any
modifications, revisions, reductions, orchanges to the proposed
assessment district shall be reflected in the notice and map recorded
pursuant to Section 36627:
36625. la) If the city council, following the public hearing,
decides to establish the proposed property and business improvement
district, the city council shall adopt a resolution of formation that
shall contain all of the following:
(1) A brief description of the proposed activities and
improvements, the amount of the proposed assessment, a statement as
to whether the assessment will be levied on property, businesses, or
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both within the distiicE, •a statement•, about. whether-b6A&s .will -be
issued 4a,nd a description•of the exterior bpundaries of fhe.proposed
.distridt.'They descriptions -and statements: do hot meed to• �be ,deta; led
and shall be su€fi.cient..if they enable anowner=fo ;generaliy" identify
't -he nature and•:eatent of the 'improvements,and activities acid the
c
loation' and :extent: oKthe ,proposed d'strict..
(2) The number, date of adoption, and. title:ot,the;resolution-of
intention.:
(3i) .The t ide.and place, where the public.�h'ea,ri:ng Was'•hela
concerning the establishment of the district.
'(4) `A 'determination iegarding any .protests- received: THe .city
shall not estabiish the .district or levy assessments i£ a majority
protest was received.
'(5) .A statement khat the properties,• ausinesses,or properties and
businesses in the'district established -by •the •resolution.shall be
subject to any ,amendments%to this part.
„(6)'A •statement that the improvements and activities to,'be
provided, in the .district will be funded by the levy of the
assessments.. The revenue from thelevy of assessments within a
district shall .not .be used to provide improvements. or activities
putside•the'district or for,any purpose Other. ,than the purposes'
specified In the resolution of intention, as modified by 'the city
council at :the hearing concerning 6f the district.
(7)• A+finding that :the property or'busiriesses within thee -;area of.
,the property.and'business improvement district will be benefited by
the improvements and activities funded by the assessments proposed.to
be levied.. '
(b) The adoption 'of the resolution of formation and, if required,
tecokdatiod of the notice. and map pursuant to Section 316621 "shall
constitute the .levy of an assessment. in each of the fiscal years
referred to in the management district plan.
36626. If the city eouncil,following the
public �hearing, desires
to •tabl-ish,the proposed property and business vnprovement district,
t,
and the city -council: has not made` changes pur`sua'nt )-o- Sd `:tion '3,6£29,
or has made changes that do not substantially change theproposed
assessment,, the city council shall adopt.a resolution establishing
the district.' The resolution shall contain all of Ehe information,
specified in paragraphs (3,)' to (8),- inclusive, of ,subdivision (b) of
Section 36625; butneed not contain information about the preliminary
resolution'if none has ;been. adopted:
36627: Following adoption -.of the resolution -establishing district
assessments on properties pursuant to Section 36625 or Section 36626,
the cleikof the city shall record a notice .and an assessment
.diagram pursuant to Section. 3114. No other provision of Division 4.5
(commencing with Section 3100) applies to an assessment district
created pursuant to this part.
36628. The city council may establish one or more separate benefit
zones, within the district -based upon the degree of benefit derived
from the improvements or activities to be provided within the benefit
zone and may impose a different assessment within each benefit zone.
If the assessment is to be levied on businesses, the city council
may also define. categories of businesses based upon the degree of
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lienefit•that;:eaph ayil'1 .derive From the .itdp;ovemegts. or',actiuties to
;be provided within the district and may'inpose a.'different assessment.
nor rate 'of. assessment on each category `of .W6iness, or on ;each
ca`tegog -of litisiness withineach zone.
36628.5, The ;dirty council may levy assessments- on businessed or on
property owners, or -a combination 'o€ the two, pursuant to,.+thi:s..par-t.
'The -city council shall structure the assessments,ifi'Ohatevet,-mahher
it determines corresponds with th'e distribution of+benefits from the
-:proposed.improvemen'ts and .activities.
36629. Ali provisions of .this -part applicable to, the establishment,
modification; or disestablishment of a,property,and _business -
,improvement district apply to the,establishment,•mg0if.icati6n, or
disestablishment of 'benefit zones or categories of business. The city
council shall, to establish, modify, or disestablisha-benefit- zone
or category of business; follow the procedure. to establish-, modify,
.,or disestablish. a parking and business improvement area.
36630'. If a propekty and business improvement district expires' due
to the time limit set pursuant to subdivision•(h)•of.5ection 36622,
new management Aistrict plan may be created and a-n_ew..district
established pursuant- to this part.
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.6AI,IfpRN3A. ;CbDES
'STREETS- AND -HIGHWAYS .CODE
.SECTION 36631-,36637
36631: The collection of the .assessments levied purs uentto this
.part shall be;made at the time .and in themanner. set-foiih:by the
city council in resolution le. ing�'th6 assessment: Assessments
levied on zeal property may be collected'at -the same Lime and in 'the
same:manner is for the ad vaiorem property tax; and aiay-p5ovide for
the same lien piority and 'penalties for�delinque'nt payment. All
delinquent payments for. assessments ledied pursuant to' 'this part
shall, be charged, interest and penalties.
36632. (a) The assessments levied on real property pursuant to this
-part shall. be levied -on the .basis of the estimated benefit to the
X661 property within the property and business improvement district.
The city douhcil may classify.properties"for purposes 'of determining
the benefit to, property of theimprovements and activities provided
pursuant to .this part.
�(b)'.As"sessmepts levied on.bhsinesses pursuarit to this part shall
,be, levied. on the basis of the estimated benefit to the businesses,
within the property and business improvement district. The city
council may classify businesses for purposes of determining the
'benefit. to 'the,businesse's of the improvements and activities "provided
pursuant to this part.
(c) Properties zoned solely for residential use, or that are zoned
for agricultural use, are conclusively presumed not to,benefit from
the mprovements-and service funded through these assessments; and
shall not be subject to 'any assessment pursuant to .this part.
96533,. The -Validity of an .assessment levied under +this.pairt shall
not,be contested in any action or proceeding, unless the .action or
proceeding is commenced within .30 days after' the 'resolution levying
the assessment:is adopted pursuant .to-Section.36626..Any ;appeal from.
a final judgment iti-an. action or proceeding shall be peifedted within
30, days after the entry of judgment.
36634. The city council .may execute baseline 'service contracts that
would establish levels of city services that would continue after a
property and business improvement district has been formed.
36635. The owners' association may, at any time., request that the
city council modify the management district plan. Any modification of
the managementdistsict plan shall be made pursuant to this chapter.
36636. la) -Upon the written. request of the owners' association,, the
city council may modify the management district plan .after
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•bonducting oiie
public hearing `' - 's
p _ g ;on the propo"sed ,inodi fica`tiobs. The.;city
'council, may modify the improvements and activities to .be.. Epnded with
the revenue derived tram the, levy of the assessmeflt-s by.,adopti.ng a
:resolution deteim ning,'to•make•the m6difications_after."holding a.
public healing ,on the.',proposed modifications. If the modifidation
(,includes the levy of anew or increased assessment,,, the city council.
shall 'comply with Section•3662'3,�Notice'of all othet'publYc meetings,
and pq . c hearings pursuant to this section shall.compl,y with both
,of the following;.
{1)•Theresolution .of -intention shall be publi`shed-in a newspapet
of "general circulation in_ - the ' city once At least 'seven days before
the public meeting,
(2)-A 'complete copy of the resolution of intention shall be mailed
by first class..mail, �at••least•10•,days before. the public meeting, t_o.
each,business owner -or property owner affected by the proposed,
m_odlficafion:
(b) The city coupcil,shall adopt a resolution of intention. which
states the proposed.modification prior to the public hearing required
by this section. The public hearing shall be held not more than 90
,days after the 'adoption of the resolution of intention;
36637.. Any subsequent modification of the resolution shall be
reflected in subsequent notices and maps recorded pursuaht:to.
Division,4.5, (commending -with Section 3100), in a manner consistent
with t'he.vrovisions•of Section 36627.
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CALI FORNIA.ZODES
STREETS FIND HIGHWAYS CODE'
SECTION• 36640
36640. (a); The-,,6it,y,counci.l may, by resolution;,determine and
declare'that. bond's shall be tissued to finance the estimated .cost of
;some. or, ail ,of'•th`e.proposed improvements -described in the resolution
of formatidn addpted-pursuant ,to Section 35625, if the resolution of
;formation adopted pursuant to that section -provides foi"ttie issuance
of '.bonds, under°the 'Improvement Bond Act of 1915 `(Division'16
(commencing with. Section 8500)) or in conjunction with Marks -Roos -
Local Bond pooling Act of 1985 (Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the•Goverci3 at Code).
Either act, as "the case may be, shall govern the proceedings relating
to theissuance�of bonds, although proceedings underthe-.5ond Act of
1915 may be modified by the city council as necessary to accommodate
.assessments levied upon business pursuant to this part.
(b) The resolution adopted pursuant to subdivision (a) shall
generally describe the proposed improvements specified in the
resolution of formation- adopted pursuant to •Section 36625; 'set forth
the cotimated,,cost'of those improvements, specify the .number of
annual Snstaliments and the fiscal years during which they are, to• be
collected. The•ambunt. of debt service to retire the. bonds -sha11 not
exceed the amount of revenue estimated to be raised from assessments
over 30 years.
(c) Notwithstanding any other provision of this part, assessments"
levied to pay the piincioal and interestonany bond issued "pursuant
to this section shall not be reduced or terminated if doing sowould
interfere with the timely retirement of the debt.
httplhvwwleo.-info.ca.gov/cgi-bin/waisgate?WAISdoclD=4759081683+0+0+0&WAISac..: 04/03/2012
28
WAIS .Document Retrieval
CALIFORNIA CODES
$TttEETS AP1d kltffOAYS CODE
SECTION 36650-36651
,366'50,• .'(a.) :The'owners' association shall. ;cause to bd,prepzred a.
report for each .fiseal year,, except' the first year,,for which
assessments are to be levied and collected to pay the costs 'of. the.
improvements and activities described in the report.. .The owners'
associa6ion's first report shall be due after the first year of
operation of the district. The report may propose changes, including,
butmot limited to, the boundaries of the. propeity and business
improvement district or any benefit zones. within the district; the
basis and method of levying the assessments, and any -changes in the
classificationof property, including any categories of business, if
a classification is used.
(b) The report shall be filed with the clerk andshall refer to
the property and business • improvement district by name, specify the
fiscal year to which the report applies; and, with iespect to that
fiscal year, shall contain ,all of the f6llowing information:
(1) Any proposed changes. in the boundaries of thd property and
business improvement -district 'or -in any benefit zones or
cl'assi'fication of property, or businesses within the district,
(2) Thein_pro'vements and activities to be provided for that, fiscal
year.
(3) An estimate -of the cost of providing the iniptovements and the
activities for that fiscal year.
(4) The -method and basis of levying the assessment in sufficient
detail to allow each real property or business owner, as appropriate,
to estimate the amount of the assessment to be levied against his or
her property or business for that fiscal year.
-(5) The amount of any surplus or deficit revenues to be carried
over from a•previous fiscal year.
(6) The amount of any contributions to be made from sources other
than assessments levied pursuant to this part.
(c) The city co-uhcil may,.approve the report as filed by ;the ownars'
association:or may .modify any particular contained in the report and
approve it ae modified. :Any modification. 3. 11•be:made purevant to
'Sections 36635 And 36.636.
The •city council shall not approve a -change in the basis and
method of levying assessments that would impair an authorized or
executedcontract to be paid from the 'revenues derived from the levy
of assessments, 'including any commitment to pay principal and
interest -on .any bonds issued on behalf of the district.
36651. The management district plan may, but is not required to,
state that an owners' associasion will provide the imorovements or
activities described. in the management district plan. if the
management district plan designates an owners.' association, the city
shall contract with the designated nonprofit corporation to provide
services.
httpYhvww.leginfo.,mgoy/cgi-bin/wais&to?NVAISdocIDa759462177+0-: W&WAISac... 04/03/2012
29
WAIS D&Urn nt Retdde id
CALIFORNIA CODES
STREETS. AND,'HIGHWAYS:CODE-
:SECTTPNd 3,6.660
36660... .(a) Any district- previously established whose term his
eiip_ired; may be reneKed.by following the procedures for establishment
As provided ,in this chapter.
(b) Upon renewal, any ieumaining revenues derived. From the.levy of
asses'sment's, or any revenues derived from the sale of assets-
acquired
with the .revenues, shall be transferred to the renewed district: If
the renewed district includes additional parcels or businesses .not
'included in 'the prior district, the remaining revenues shall bespent
to benefit -only the •parcels or businesses in the prior district. If
the :renewed -district does not include parcels or bus inesses'iincluded
in the ,prior ,district, the remaining revenues attributable 'to .these
parcels shall be refunded to Ithe owners of these parcels of
businesses.
(c) Upon renewal, .a district shall have a term not to exceed 10
•years, or, if the district is authorized to issue bonds, until the
maximum maturity of those°bonds. There is no requirement that 'the
boundaries, assessments, ±J pkovements, or activities of a renewed
distriet.be-,he same as the original or prior district.
M
http://wwW.leginfo.ca.gov/cgi-bin/Waisgate?WAISdocID=47'59702520+0+0+0&,WAISac... 04/03/2012
30
WAIS Document Retrieval
.CALIFORNIA;CODES,
STREETS. AND HIGHWAYS CODE
SBCTY61; 366704601.
36670. (a) Any district established or.extended pursuant_ to 'the,
provisions of this part, where thereis no :ndebtedness�r outstanding:
and unpaid, incuto accomplish any of the purposes of
'district, may'be disestablished`by resolution by thd•city council 'in
either of the following circinstances:
(1) If the city council findstherehas been misappropriation of
funds, malfeasance, or a violation of law in connection with the
management of the 'district, it shall notice a hearing_ on
disestablishment.
(2) wring the operation of the district, there shall•be a:30=day
period each yeai.inwhich-.assessees may request disestablishment .6f
the district. The first such period shall begin one year,aftei the
date of establishment of the district and shall continue tot 30. days.
The next such,3.0-day period shall begin two years after the•daie of
the establishment of the district. Each successive year of operation
of the district shall .have such a 30 -day ,period. Upon the written
petition of 'the owners ,or authorized representatives b€ real. property
. or the owners or•authocized representatives of businesses in the
area 'who pay 5o percent or ;mote of the assessments levied,' the city
-.council shall -pass a resolution of intention to disestablish "the
district.. The city council shall notice a hearing on
disestablishment:
(b) The city council shall adopt a resolution. of intention td
disestablish the district prier to the public hearing required by
this .section. The resolution shall state the .reason for the
disestablishment, -shall state the time and place of the public
hearing, and shall contain a proposal to disposeofany assets
acquired with the revenues of the assessments levied within the
ptonerty and business improvement district". The notice of the hearing
on disestablishment required by this section shall be given by mail.
to the. property owner of each parcelor to the owaer of each business
subject to assessment -in the district, as appropriate. The city
shall conduct the public hearing not less than 30 days after mailing
the notice to 'the property or business owners. The public hearing
shall Abe held, not more than 60 days after the The
ofthe
'resolution of intention.
36671. (a) Upon the disestablishment of a district, any "remaining
revenues, after all' outstanding debts are paid, derived from the levy
of assessments, or, derived from the sale of assets acquired with the
"revenues, or from bond reserve or construct -ion funds, shall be
refunded to the owners of the property or businesses then located and
operating within the district in which assessments were levied by
applying the same method and basis that was used to calculate the
assessments levied in the fiscal year in which the district is
disestablished. All outstanding assessment revenue collected after
disestablishment shall be spent on improvements and activities
specified in the management district plan.
(b) If the disestablishment occurs before an assessment is levied
for the fiscal year, the method and basis that was used to calculate
-the assessments levied in the immediate prior fiscal year shall be
used :to calculate the amount of any refund.
htipJ/www.leginfo.ca.gov/cgi binhvaisgate?WAISdocID=47599S2S92'.-0-M&WAISac... 04/03/2012
31
APPENDIX 2
Map of Hotels and Resorts to,beAssess.Within NewportBea6 TBID
Newport Beach Tourism BID Management District Plan Page 26
32
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33
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33
APPENDIX 3.
Newport Beacli Tour -ism BID Addresses &..Assessor ParcO Numbers
Newport Beach Tourism BID Management District Plan Page 28
M
NeNvport'Beach Tourism Improvement District
Assessed Properties
Pairmont,Newport Beath
APN: 445-122-11
Hyatt Regency Newport Beach
APN 440-132.41
Newport Bench Marriott Bayview
APN: 442-2$2-01
442-252-02
442-252-03
NewpoitBeachMarriott Hotel &'Spa
APN: -42-011-68
442-011-69
Radisson Newport Beach
APN: 427-174-04
Balboa Bay Club anclResort'
APi`F: 049=161-03
,049-161-05
Newppgbunes Waterfront Resort &t Marina
APN; 440=132-42
4,40=132-43
440-132-59
APN — Assdss6i PaiceL Number
4500 MacArthur Bottle'aiaNetvportBeadl (, A'92660.
1107 7ambor.ee Road Newport Beach, CA 92660
500 Bayview"CiicleNetvport Beach, CA 92660
900'Newport Center Drive Netiporl Beach, CA 92660
4545 MacAitliurB6ulevard NewportBeach,;CA 92660
1221 West, Coast Highdray Newport Beady CA 92663
l 13i Back Bay' Drive•NewportBeach CA 92660
35
s
F
FO V -
January 17, 2014
. 31,406) 1
CITY CLERK'S OFFICE
Leilani I. Brown, MMC
Dear Newport Beach Tourism Business Improvement District Member:
On November 26, 2013, the City Council adopted Resolution No. 2013 — 87, A Resolution of
Intention to Modify the Management District Plan of the Newport Beach Tourism Business
Improvement District (NBTBID). Resolution No. 2013-87 started the process of shortening the
current term of the NBTBID to enable the process to renew the NBTBID and extend its term to
begin in late 2013.
On Tuesday, December 10, 2013 the Newport Beach City Council held a public meeting to
receive public comment on the proposed modification of the NBTBID Management District Plan
(MDP). The final step in the NBTBID MDP modification process is for the City Council to hold a
public hearing on the proposed modification. The public hearing will be held on January 28,
2014 at 7:00 p.m. or as soon thereafter as this matter may be heard, at the Newport Beach
Council Chambers, 100 Civic Center Drive, Newport Beach, CA 92660.
You are welcome to attend the hearing to provide your comments on the proposed NBTBID
MDP modification. Written comments may also be submitted in advance of the meeting and/or
hearing to the City Clerk's Office, 100 Civic Center Drive, Bay E, Newport Beach, CA, 92660 or
cityclerkp_newportbeachca.gov. A copy of the modified MDP is on file and may be reviewed at
the City Clerk's Office as well.
Please note, the NBTBID modification process is related to, but separate, from the proposed
renewal of the NBTBID. You will receive a separate letter and information that pertains
specifically to the NBTBID's renewal.
4&�U
Leilani I. Brown, MMC
City Clerk
End: Resolution 2013-87
100 Civic Center Drive • Post Office Box 1768 • Newport Beach, California 92658-8915
Telephone: (949) 644-3005 • Fax: (949) 644-3039 • www.newportbeachca.gov
RESOLUTION NO. 2013-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
MODIFY THE MANAGEMENT DISTRICT PLAN OF THE
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT
DISTRICT
WHEREAS, on April 28, 2009 the City Council of the City of Newport Beach
("City Council") adopted Resolution Number 2009-21 adopting the Management District
Plan and establishing the Newport Beach Tourism Business Improvement District
("NBTBID"); and
WHEREAS, the Property and Business Improvement District Law of 1994,
Streets and Highways Code Sections 36600 et seq., allows the City Council to modify
the Management District Plan ("MDP") at the request of the Owners' Association; and
WHEREAS, on November 14, 2013, the NBTBID Owners' Association, Visit
Newport Beach ("VNB"), requested modification of the MDP pursuant to California
Streets and Highways Code Section 36635.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided above are true and correct and are
incorporated into the substantive portion of this resolution.
Section 2: The City Council declares its intention to modify the NBTBID MDP.
Section 3: The proposed modification of the NBTBID MDP will shorten the
duration of the NBTBID, from five (5) years to four (4) years and nine (9) months. The
modification will cause the NBTBID to expire on January 31, 2014.
Section 4: The time and place for a public meeting on modification of the
NBTBID MDP is set for 5:30 p.m. or as soon thereafter as the matter may be heard on
December 10, 2013, at the Council Chambers located at 100 Civic Center Drive,
Newport Beach, CA 92660.
Section 5: The time and place for a public hearing on modification of the
NBTBID MDP is set for 7:00 p.m. or as soon thereafter as the matter may be heard on
January 28, 2014, at the Council Chambers located at 100 Civic Center Drive, Newport
Beach, CA 92660.
Section 6: The City Clerk is directed to provide notice of the public meeting
and public hearing in accordance with Streets and Highways Code Section 36636.
Section 7: 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 8: 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, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses and phrases be declared invalid or
unconstitutional.
Section 9: 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 26 day of November, 2013.
Keith D. Curry, Mayor
ATTEST:
Leilani 1. Brown, City Clerk
Vc®ay rccry Lauum
Use Avery@ Template 51600 �
Debra L. Snavely
General Manager
Newport Beach Marriott Hotel & Spa
900 Newport Center Drive
Newport Beach, CA 92660
Robert Leck
General Manager
Radisson Newport Beach
4545 MacArthur Boulevard
Newport Beach, CA 92660
Karl Kruger
General Manager
Fairmont Newport Beach
4500 MacArthur Boulevard
Newport Beach, CA 92660
Send along line to i
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Andy Theodorou
General Manager
Newport Dunes Waterfront Resort &
Marina
1131 Back Bay Drive
Newport Beach, CA 92660
Kandee Anderson
General Manager
Newport Beach Marriott Bayview
500 Bayview Circle
Newport Beach, CA 92660
Daniel Kuperschmid
General Manager
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach, CA 92660
Dieter Hissen
General Manager
Balboa Bay Resort
1221 West Coast Highway
Newport Beach, CA 92663
oo
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STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday; January 18, 2014
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on January 30, 2014
at Los Angeles, California
ignature Aft
y VF
Wj 7-
December 13, 2013
OFFICE OF THE CITY CLERK
Leilani I. Brown, MMC
Dear Newport Beach Tourism Business Improvement District Member:
On Tuesday, December 10, 2013 the Newport Beach City Council held a public meeting to
receive public comment on the proposed modification of the Newport Beach Tourism
Improvement District (NBTBID) Management District Plan (MDP).
There is one more step involved in the NBTBID MDP modification process. A public hearing on
the proposed modification is set for January 28, 2014 at 7 p.m. at the Newport Beach Council
Chambers, 100 Civic Center Drive, Newport Beach, CA 92660.
You are welcome to attend the hearing to provide your comments on the NBTBID MDP
modification. Written comments may also be submitted in advance of the meeting and/or
hearing to the City Clerk's Office, 100 Civic Center Drive, Bay E, Newport Beach, CA, 92660 or
cityclerk(a-)-newportbeachca.gov. A copy of the modified MDP is on file and may be reviewed at
the City Clerk's Office as well.
Please note that the NBTBID MDP is related to, but separate, from the proposed renewal of the
NBTBID. You will receive a different letter and information from me, also dated December 13,
that pertains specifically to the NBTBID's renewal.
Sincerely,
6w -
n. ,MMC
City Clerk
Enclosure: Resolution No. 2013-87
3300 Newport Boulevard • Post Office Box 1768 - Newport Beach, California 92658-8915
Telephone: (949) 644-3005 • Fax: (949) 644-3039 • www.newportbeachca.gov
RESOLUTION NO. 2013-87
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH DECLARING ITS INTENTION TO
MODIFY THE MANAGEMENT DISTRICT PLAN OF THE
NEWPORT BEACH TOURISM BUSINESS IMPROVEMENT
DISTRICT
WHEREAS, on April 28, 2009 the City Council of the City of Newport Beach
("City Council") adopted Resolution Number 2009-21 adopting the Management District
Plan and establishing the Newport Beach Tourism Business Improvement District
("NBTBID"); and
WHEREAS, the Property and Business Improvement District Law of 1994,
Streets and Highways Code Sections 36600 et seq., allows the City Council to modify
the Management District Plan ("MDP") at the request of the Owners' Association; and
WHEREAS, on November 14, 2013, the NBTBID Owners' Association, Visit
Newport Beach ("VNB"), requested modification of the MDP pursuant to California
Streets and Highways Code Section 36635.
NOW, THEREFORE, the City Council of the City of Newport Beach resolves as
follows:
Section 1: The recitals provided above are true and correct and are
incorporated into the substantive portion of this resolution.
Section 2: The City Council declares its intention to modify the NBTBID MDP.
Section 3.- The proposed modification of the NBTBID MDP will shorten the
duration of the NBTBID, from five (5) years to four (4) years and nine (9) months. The
modification will cause the NBTBID to expire on January 31, 2014.
Section 4: The time and place for a public meeting on modification of the
NBTBID MDP is set for 5:30 p.m. or as soon thereafter as the matter may be heard on
December 10, 2013, at the Council Chambers located at 100 Civic Center Drive,
Newport Beach, CA 92660.
Section 5: The time and place for a public hearing on modification of the
NBTBID MDP is set for 7:00 p.m. or as soon thereafter as the matter may be heard on
January 28, 2014, at the Council Chambers located at 100 Civic Center Drive, Newport
Beach, CA 92660.
Section 6: The City Clerk is directed to provide notice of the public meeting
and public hearing in accordance with Streets and Highways Code Section 36636.
Section 7: The City Council finds the adoption of this resolution of intention is
not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
16060(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 8: 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, clause or phrase hereof, irrespective of the fact that any one or
more sections, subsections, sentences, clauses and phrases be declared invalid or
unconstitutional.
Section 9: 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 26 day of November, 2013.
Keith D. Curry, Mayor
ATTEST:
OVI. porn",
Lellani 1. Brown, City Clerk
kW�rhte 5160®
Use Avery Template 51600
Debra L. Snavely
General Manager
Newport Beach Marriott Hotel & Spa
900 Newport Center Drive
Newport Beach, CA 92660
Robert Leck
General Manager
Radisson Newport Beach
4545 MacArthur Boulevard
Newport Beach, CA 92660
Karl Kruger
General Manager
Fairmont Newport Beach
4500 MacArthur Boulevard
Newport Beach, CA 92660
i� fee&Paper e - r - TM e'
jFeed Paper expose Pop-up EdgeTM ^
Andy Theodorou
General Manager
Newport Dunes Waterfront Resort &
Marina
1131 Back Bay Drive
Newport Beach, CA 92660
Kandee Anderson
General Manager
Newport Beach Marriott Bayview
500 Bayview Circle
Newport Beach, CA 92660
Daniel Kuperschmid
General Manager
Hyatt Regency Newport Beach
1107 Jamboree Road
Newport Beach, CA 92660
Dieter Hissen
General Manager
Balboa Bay Resort
1221 West Coast Highway
Newport Beach, CA 92663
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PROOF OF
PUBLICATION
STATE OF CALIFORNIA)
) SS.
COUNTY OF ORANGE )
I am a citizen of the United States and a
resident of the County of Los Angeles; I
am over the age of eighteen years, and
not a party to or interested in the notice
published. I am a principal clerk of the
NEWPORT BEACH/COSTA MESA
DAILY PILOT, which was adjudged a
newspaper of general circulation on
September 29, 1961, case A6214, and
June 11, 1963, case A24831, for the
City of Costa Mesa, County of Orange,
and the State of California. Attached to
this Affidavit is a true and complete copy
as was printed and published on the
following date(s):
Saturday, December 14, 2013
I certify (or declare) under penalty of
perjury that the foregoing is true and
correct.
Executed on December 19, 2013
at Los Angeles, California
Signature