HomeMy WebLinkAbout05 - Resolution of Intention to Renew the NBRABID and Levy Assessments in Fiscal Year 2016-2017Q �EwPpRr
CITY OF
z NEWPORT BEACH
City Council Staff Report
May 24, 2016
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Dave Kiff, City Manager - 949-644-3001,
dkiff@newportbeachca.gov
PREPARED BY: Mary Locey, Management Analyst/BID Liaison
mlocey@newportbeachca.gov
PHONE: 949-644-3031
TITLE: Resolution of Intention to Renew the Newport Beach Restaurant
Association Business Improvement District and Levy Assessments
in Fiscal Year 2016-2017
ABSTRACT -
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
Board of Directors has submitted the BID's fiscal year (FY) 2015-2016 Annual Report
for City Council approval and has requested renewal of the BID for FY 2016-2017.
RECOMMENDATIONS:
a) Determine that the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines
because it will not result in a physical change to the environment, directly or
indirectly;
b) Approve the Newport Beach Restaurant Association Business Improvement District
Fiscal Year 2016-2017 Annual Report; and
c) Adopt Resolution No. 2016-64, A Resolution of the City Council of the City of
Newport Beach, California, Declaring its Intention to Renew the Newport Beach
Restaurant Association Business Improvement District and Levy Assessments for
the Fiscal Year of July 1, 2016 to June 30, 2017, and Fix the Time and Place of a
Public Hearing for June 14, 2016.
FUNDING REQUIREMENTS:
The City of Newport Beach collects the member assessments on behalf of the NBRA
BID and remits the monies back to the BID for funding the activities described in the
attached annual report. In addition to the member assessments, in 2013, the City
5-1
Resolution of Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments in Fiscal Year 2016-2017
May 24, 2016
Page 2
Council agreed to provide $40,000 each year for five years (ending in FY 2017-18) to
support the NBRA BID efforts.
In 2014, the City Council approved reducing funding to $20,000 when it was agreed to
bring the BID accounting (assessment billing, collection, financial reporting) and minimal
administrative support in house to be performed by City staff.
The City's proposed FY 2016-2017 budget includes sufficient funding to continue to
support the NBRA BID. It will be expensed to the Professional and Technical account in
the City Manager's Office, Economic Development Division, 01020202-811008.
DISCUSSION:
The Newport Beach Restaurant Association Business Improvement District (NBRA BID)
was formed in 1995 (Ordinance 95-55) pursuant to the Parking and Business
Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code
Sections 36500 et seq. The NBRA BID was established for the purpose of financing
activities and programs to benefit the businesses located and operating in the area. The
NBRA BID encompasses any food service business (such as restaurants, groceries
with a dine in or take-out food service, mini -marts, gas stations with take-out food
service and bars serving food) doing business within the boundaries of the City of
Newport Beach. (A boundary map is attached to the Resolution.)
The NBRA BID is nearing the end of its FY 2015-2016 and the Board of Directors has
requested renewal of the BID for FY 2016-2017. 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 Board of Directors, which serves in an advisory capacity to the City
Council, has prepared and submitted the attached annual report (Attachment A) for the
Council's review and approval. The report includes a summary of the NBRA BID's FY
2015-2016 accomplishments and revenues, as well as its proposed activities and
budget for the new fiscal year. The NBRA BID Board is requesting renewal in its present
structure as identified in the annual report. It should be noted, that the NBRA BID Board
has been working on amending the BID's structure, and intends to present proposed
changes to the City Council for consideration at a later date. A note has been added to
the bottom of the budget, which reflects the estimated increase in assessment revenue
should the amendment be approved.
Fiscal Year 2016 Accomplishments
The NBRA BID Board has continued efforts on the priorities identified in its 2013-2016
Strategic Business Plan. Specific areas of focus include providing an annual marketing
strategy for promoting dining in Newport Beach, ongoing communications with business
members and diners, targeted outreach efforts, and financial oversight and evaluation.
5-2
Resolution of Intention to Renew the Newport Beach Restaurant Association Business
Improvement District and Levy Assessments in Fiscal Year 2016-2017
May 24, 2016
Page 3
The main special event of the NBRA BID is the annual Newport Beach Restaurant
Week, held each year in January. This year marked the 10th anniversary of the event
and it spanned two full weeks. The event metrics showed a 19 percent year -over -year
growth, of the event diners surveyed, 79 percent resided outside of Newport Beach, and
94 percent rated the event as an excellent value (Attachment B).
The NBRA BID Board recently adopted a partner program (Attachment C), which is run
directly through its marketing agency, Newport Beach & Company (NB&Co.). Interested
individuals or businesses pay a small, annual fee to be connected to NBRA BID
member businesses and have the opportunity for future advertising and event
sponsorship.
Through the strategic partnership with NB&Co., the NBRA BID has participated in a
variety of community events such as Taste of Balboa, Newport Beach Wine and Food
Festival, Balboa Craft Beer Festival, and the Newport Beach Film Festival.
The NBRA BID will continue efforts on the above and the remainder of the FY 2016-
2017 activities listed in the annual report including ongoing and regular marketing and
public relations.
City staff is recommending adoption of Resolution No. 2016-64, a Resolution of
Intention to Renew the Newport Beach Restaurant Association Business Improvement
District (Attachment D) and levy assessments in fiscal year 2016-2017 and setting the
public hearing for renewing the NBRA BID for June 14, 2016.
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Staff recommends the City Council find this action is not subject to the California
Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not
result in a direct or reasonably foreseeable indirect physical change in the environment)
and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA
Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no
potential for resulting in physical change to the environment, directly or indirectly.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of
the meeting at which the City Council considers the item).
ATTACHMENTS:
Attachment A — NBRA BID Annual Report and Budget
Attachment B — Newport Beach Restaurant Week Matrix
Attachment C — NBRA BID Partner Program
Attachment D — Resolution of Intention to Renew the NBRA BID
Resolution Exhibit A — NBRA BID Boundary Map
5-3
ATTACHMENT A
Newport Beach Restaurant Business Improvement District
Fiscal Year 2015-2016 Annual Report
As required by Section 36533 of the California Streets and Highways Code, the annual report of
the Newport Beach Restaurant Business Improvement District (NBRA BID) contains the
required information as follows:
1. Proposed Changes to the District Boundary
There are no changes proposed to the district boundaries
2. Improvement and Activities for the Fiscal Year of July 1, 2016 to June 30, 2017
Mission, Values and Goals
Pursuant to its Strategic Business Plan 2013- 2016, the NBRA BID will continue its mission
through adherence to defined values and guiding principles with the following priority
initiatives from the strategic business plan:
Marketing I Promotion
oc New marketing and media partnerships investigation
oc Enhanced website/social media engagement
oc Targeted and measurable annual marketing strategy
Communication I Education
oo Engaging investor outreach strategy and program execution
oc Relevant educational program development based on member needs
oc Ongoing calendar of events development
Community & Stakeholder Relations I Education
oo Top Foodservice issues identification and advocacy
oo Clearinghouse set-up for charitable causes
oo Targeted and measurable annual communications plan with appropriate messaging
Financial Resources and Administration
oc Updated rolling year strategic plan review
oo Aligned program of work and budget allocations
oo BID fee structure evaluation and approval
oo Board manual development
NBRA BID Vision 2020
The NBRA BID is a strong investor and community partner marketing group extolling the
city's quality foodservice and brand experience.
oo Enhanced foodservice sector brand marketing
oo Increased communications of BID stakeholder benefits
oo Strengthened community and industry partnerships with higher leveraged results
oc Stronger selective communitywide foodservices event involvement and promotion
NBRA BID FY 2015-2016 Annual Report I Page 1 of 10
5-4
Objectives
1. Promote Newport Beach restaurants and stakeholder and showcase the local culinary
community to increase diner frequency and generate stakeholder sales.
2. Grow awareness of the Dine Newport Beach brand and the Newport Beach dining
destination.
3. Foster the Newport Beach culinary community in order to increase restaurant,
stakeholder and partner engagement.
4. Leverage the Dine Newport Beach brand and assets to generate incremental revenue
for increased program marketing and promotion.
Priority Initiatives
The NBRA BID has identified and will work in Fiscal Year (FY) 2016-2017 to implement and
exceed current and long-term NBRA BID goals and objectives through key activities to
realize its vision over the next year.
Brand L Dining Destination Awareness
NBRA BID will deploy integrated online, print, broadcast, public relations and social media
campaigns throughout the year during restaurant need periods, dining holidays and local
signature culinary events.
WBhsitp
The NBRA BID website, DineNB.com, will add relevant content, improved imagery,
additional dining guides, curated dining experiences and user-friendly navigation. Blog
content will not only be provided by staff, but also by food and lifestyle bloggers and
influencers. The website will strive to improve its search engine optimization best practices
and focus on Newport Beach dining and restaurant keywords to index higher in organic
search. Focus will be on keyword research, volume and competitor analytic tracking.
Mobile
As the majority of diners use mobile devices to explore culinary offerings and events, the
NBRA BID will create an enhanced mobile experience for diners to easily search restaurants
by neighborhood, cuisine, price point and location. In addition to user-friendly access to
dining guides and curated dining experiences, the Dine NB mobile experience will be
optimized for easy online reservation capability.
Digital Marketing
The Newport Beach dining destination, culinary promotions and events will be advertised
with targeted paid search ads on the major search engines and social networks. In addition,
the digital marketing team will leverage key industry and media partners to promote the
Newport Beach dining destination, Dine NB.com and program messaging.
Email
The Dine Newport Beach weekly newsletter will deliver relevant information to diners in a
timely manner. The newsletter will provide motivating content including culinary round -ups,
dining trends, restaurant offers and promotions, and dining events. The NBRA BID will
continue to focus on acquisition strategies to grow its subscriber list, as well as leverage
partner channels to deploy program messaging.
NBRA BID FY 2015-2016 Annual Report I Page 2 of 10
5-5
Social Media
Trending culinary topics, images and video content on the existing social channels will drive
followers and build online engagement. The NBRA BID will conduct strategic outreach to
key culinary, travel and lifestyle influencers in order to engage with these personalities to
broadcast to the larger social population and expand the networks.
Media Relations
The NBRA BID will develop relationships and grow engagement with food and travel writers,
influential lifestyle bloggers and media professionals to ensure that the local culinary
community, its stakeholders and their promotions and events receive editorial coverage in
local, regional and national media outlets throughout the year.
Advertising
Marketing campaigns with fresh creative and messaging will generate consumer awareness
and keep the Newport Beach dining destination, the local culinary community and
DineNB.com top of mind in the market. Advertising will appear in a variety of media
including online, print and broadcast outlets, as well as in partner channels.
Signature Event
The NBRA BID will produce Newport Beach Restaurant Week that not only promotes the
participating local restaurants, but also positions Newport Beach as Orange County's
premier dining destination.
Concierge Service
The NBRA BID will provide a toll-free phone number serviced by the Newport Beach &
Company concierge located at Fashion Island. The concierge service provides restaurant
and dining recommendations and reservation assistance.
Promotional Materials
Marketing collateral will be created to promote DineNB.com and its comprehensive online
dining guide. Collateral will be distributed throughout Orange County at airports, hotels,
office centers and key visitor locations, as well as at a variety of local events throughout the
year.
Partnership Opportunities
Open to individuals and businesses that want to connect with NBRA stakeholders and Dine
Newport Beach Diners, the Partner Program will generate new income through partner fees,
advertising and sponsorship opportunities. The NBRA BID will continue to develop
additional valuable assets to leverage for incremental income.
NBTV
Messaging and content about Newport Beach dining will be produced in partnership with
Newport Beach TV. An increased library of video content will be utilized to tell the story of
Newport Beach as a dining destination and deployed through a variety of NBRA BID and
partner channels.
Industry & Community Relations
The NBRA BID will support organizations and events that assist in promoting the local
restaurant and culinary community. Support will include cooperative marketing, online and
social media support, public relations assistance and promotion of events with local
restaurant and culinary components.
NBRA BID FY 2015-2016 Annual Report I Page 3 of 10
5-6
Stakeholder Communications
The NBRA BID will engage NBRA restaurants, partners and local stakeholders with email
and occasional print communications. The quarterly NBRA newsletter includes information
on BID news and meetings, promotional opportunities, as well as industry information and
events.
Stakeholder Activities
The NBRA BID will develop stakeholder events designed to engage and educate members
on NBRA activities, promotions and industry issues. These events include neighborhood
mixers, workshops and seminars.
Civic Event Participation
The NBRA BID will participate and contribute to a variety of local civic events including the
Annual Newport Beach Mayor's Dinner and the Newport Beach Police Appreciation
Breakfast.
Professional Relationships
The NBRA BID will maintain a variety of industry relationships and memberships with, but
not limited to, Newport Beach & Company, the OC Visitors Association, Anaheim/Orange
County Visitor & Convention Bureau, California Restaurant Association and the Newport
Beach Chamber of Commerce.
Annual Meeting_
The NBRA BID will hold its Annual Meeting at a local business, where it will provide a review
of the financial standing of the NBRA BID, review marketing and promotion results, discuss
goals, objectives and programs for the upcoming fiscal year, and obtain feedback from the
general membership.
BID Marketing, Administration & Accounting
The NBRA BID will contract with an appropriate, full-service vendor to handle all marketing,
communications, public relations, website management, administrative and accounting
services.
BID Operational Costs
The NBRA BID will continue to pay for all its operational costs including approved contracts,
postal mailings, insurance, bank fees and other administrative expenses.
NBRA BID FY 2015-2016 Annual Report I Page 4 of 10
5-7
3. The Cost of These Activities is Projected as Follows:
Advertising I Media
Event Marketing & Operational Expenses
E -Newsletter Website Content I Blog ers
1777
Digital Marketing I SEO
---
$7,
Collateral
Website Maintenance
$5,000
$5,000
Graphic Design I Branding
$2,000
Social Media Promotions
$2,000
Public Relations
$2,000
Annual Meeting
$2,000
Community Event Participation
$2,500
Strategic Planning I Miscellaneous Expenses
$8,000
Research
$5,000
Marketing Consultation I Agency Fee
$60,000
BID Administration
$18,000
Operating Expenses I Insurance
$12,000
Dues I Memberships
$500
Total $233,500.00
4. The Method and Basis of Levying the Assessment Shall be as Follows:
The benefit assessments will be collected by the City in one installment. Assessments shall
be collected at the beginning of the fiscal year, and shall be pro -rated for new businesses
that open during the year.
For establishments with less than eleven (11) employees, the assessment shall be a flat
$95.00. For establishments with greater than ten (10) employees, and whose business
license tax is less than $600.00, 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. For establishments with greater than ten (10)
employees, and whose business license tax is $600.00 or more, 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 $145.00.
The penalty for delinquent payments shall be equal to that established for delinquent
business license fees pursuant to Chapter 5.04 of the Newport Beach Municipal Code,
providing that the penalty amount added shall in no event exceed fifty percent (50%) of the
assessment amount due.
5. Surplus Carryover from Fiscal Year 2015-2016
The NBRA BID estimates that $37,000 will be carried over from FY 2015-2016 to FY 2016-
2017.
NBRA BID FY 2015-2016 Annual Report I Page 5 of 10
MIR
6. Sources of Contributions Other Than Levied Assessments
In addition to the income received from the levied assessments and late fees, the NBRA BID
FY 2016-2017 budget includes $20,000 in funds from the City. NBRA estimates receiving
$25,000 in fees from participating restaurants for signature events, in addition to $10,000 in
potential grant funding from the City for a signature event.
Carryover from 2015-2016
$37,000
Stakeholder Assessments ($150K Less 10% Uncollected)
$135,000
Assessment Late Fees
$6,500
City Funding
$20,000
Event Income — Participation Fees
$25,000
Event Income — City Grant
$10,000
Total
$233,500.00
7. Accomplishments in Fiscal Year 2015-2016
FY 2015-2016 was a year of substantial growth and much success for the NBRA BID as it
completed the following projects and initiatives:
cc In partnership with Newport Beach & Company, the NBRA BID continued development
of the consumer facing Dine Newport Beach brand in order to market restaurants,
foodservice establishments and the local culinary community to diners.
oo NBRA BID continued the development and ongoing maintenance of the NBRA BID
website, DineNB.com, with stakeholder listing information, photos, menus, reviews and
online booking capabilities.
oc, The website was updated throughout the year with robust content and videos on the
Newport Beach Culinary Community, dining guides, stakeholder offers and events,
restaurant industry news and NBRA BID information. New online dining guides created
for the website include:
o Happy Hour Guide
o Live Entertainment Guide
o Group Dining Guide
x NBRA BID executed three promotional campaigns throughout the year for destination
and brand awareness to communicate the unique dining options available in the city.
0 2015 Summer Campaign —Find Your Official Flavor of Summer
0 2015 Fall Campaign — Feed Your Curiosity
0 2016 Restaurant Week Campaign — Feed Your Inner Food Critic
x Print advertising appeared throughout the year in a variety of media outlets with in -
market distribution through subscribers and in local retail stores and markets, regional
hotels and concierges, visitor centers, airports, timeshare and vacation rentals and
luxury apartments.
o Newport Beach Visitor Guide
o OC Guestbook
o OC Official Visitor Map
o DiningOut Magazine
o Orange Coast Magazine
o Locale Magazine
o Newport Beach Magazine
o Laguna Beach Magazine
o OC Weekly
o The Daily Pilot
o The Coastline Pilot
NBRA BID FY 2015-2016 Annual Report I Page 6 of 10
5-9
oo Digital advertising throughout the year helped to boost brand and destination awareness,
as well as increased website visits. Online advertising and promotions appeared in the
following media outlets
o Google Display Network
o Google AdWords
o TripAdvisor
o Facebook
oo The consumer newsletter boosted distribution to weekly to its diner subscriber base in
order to keep the Newport Beach dining destination and NBRA BID stakeholders top of
mind in a competitive Orange County culinary marketplace. The newsletter includes
blogs and stories from respected local food and lifestyle bloggers, as well as timely
information on stakeholder offers and local culinary events.
x The NBRA BID conducted ongoing outreach throughout the year to food and travel
writers, lifestyle bloggers and key media in local and regional drive markets to generate
awareness for Dine Newport Beach the Newport Beach culinary community. The PR
team hosted a national food media FAM group in October during the Newport Beach
Wine & Food Festival, as well as (61) media at a reception to kick-off Newport Beach
Restaurant Week in January.
x Through consistent and strategic social media outreach on Facebook, Twitter and
Instagram, NBRA BID experienced tremendous growth in the social channels, as well as
increased online engagement with consumers and stakeholders.
x The NBRA BID outreached to key culinary and dining influencers in order to engage with
these personalities to broadcast to the larger social population and expand the network.
x The NBRA BID conducted messaging and promotion through its social channels on
restaurant offers, culinary events, dining trends and restaurant information on a weekly
basis.
x The NBRA BID published a quarterly industry newsletter to its stakeholders that includes
timely information on industry and association news and events, as well as promotional
opportunities.
x Through the partnership with Newport Beach & Company, the NBRA BID and Dine
Newport Beach continued providing a toll-free phone number and live concierge
assistance to diners seeking information on Newport Beach restaurants through the on-
site concierge desk located at Fashion Island.
x The NBRA BID and Dine Newport Beach provided promotional support to local culinary
events including:
o Balboa Village Fest — Taste of Balboa
o Golden Foodie Awards
o Newport Beach Wine & Food Festival
o Balboa Craft Beer Festival
o Newport Beach Film Festival
NBRA BID FY 2015-2016 Annual Report I Page 7 of 10
5-10
oo The NBRA BID produced the 2016 Newport Beach Restaurant Week with (61)
participating restaurants. The event celebrated the 10th anniversary of Restaurant Week
marking 10 Years of Good Taste." The marketing and promotional efforts included:
o Advertising — Print ads appeared in Orange County Magazine, Locale Magazine,
DiningOut Magazine, Newport Beach Magazine, The Daily Pilot, The Coastline
Pilot and Laguna Beach Magazine. Digital ads appeared online through the
Google Ad Network, Facebook, TripAdvisor, Los Angeles Times Digital Media,
GreersOC.com, Eventful, VisitNewportBeach.com, DineNB.com and OpenTable.
Broadcast advertising appeared on 104.3 MyFM, KOCI, and Pandora. Out of
home billboards for the event appeared in Orange County off the 405 and 91
freeways, in the Tustin Marketplace and banners were located throughout the
city of Newport Beach. Paid and in-kind advertising generated over 6.6 million
impressions.
o PR Campaign — Editorial content, blogger coverage, calendar listings and a
reception to promote the event generated (75) articles, (481) social media posts
and over 519,000 social media impressions in media outlets In Orange County,
Los Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. On air
coverage of the event appeared on the So. Cal Restaurant Show, KOCI, 104.7
MyFM and NBTV. The campaign resulted in generating 169 million media
impressions.
Promotions — Over 100,000 promotional cards and posters were distributed
throughout the local area in hotels, visitor centers, airport, apartment
communities, at local events, participating restaurants and in City of Newport
Beach water bills in December and January. Outdoor promotional signage and
banners appeared throughout Newport Beach and Corona del Mar.
o Email Blasts — Email communications went out through Dine Newport Beach,
Visit Newport Beach, OpenTable and a variety of partner channels to over
640,000 consumers throughout LA and Orange County.
o Results — OpenTable reported a year -over -year increase of 17% in the number of
diners participating in Restaurant Week, making this the most successful
Newport Beach Restaurant Week for OpenTable in the history of the event.
There were over 176 million advertising and media impressions generated for the
event. The overall event resulted in an estimated consumer spend of $3.1 million
which is 19% growth over from the previous year.
oo The NBRA BID worked with the Newport Beach Chamber and Wake-up Newport to
promote a Minimum Wage Forum to its stakeholders in October.
oo In conjunction with Dine Newport Beach, the NBRA BID created a Partner Program for
individuals and businesses that want to connect with NBRA stakeholders and Dine
Newport Beach diners. The Partner Program generates new income managed by Dine
Newport Beach through partner fees, advertising and sponsorship opportunities.
oo The NBRA BID participated and/or contributed to the following community programs and
events: Newport Beach Mayor's Dinner, California Restaurant Association CEO Panel,
Newport Beach & Company Annual Marketing Outlook Dinner and other community
events.
NBRA BID FY 2015-2016 Annual Report I Page 8 of 10
5-11
oc- The NBRA BID continued to maintain relationships with Newport Beach & Company, OC
Visitors Association, Anaheim/Orange County Visitor & Convention Bureau, California
Restaurant Association and the Newport Beach Chamber of Commerce.
oo Newport Beach & Company is under contract with the NBRA BID to handle all
marketing, public relations, communications, website management and BID
administrative services.
oo Accounting services were provided by the City of Newport Beach.
oc The NBRA BID continued to offer credit card processing services for members to pay
their assessment and event participation fees online using a credit or debit card.
x The NBRA BID conducted outreach and recruited new stakeholders to serve on the
NBRA BID's Board of Directors.
x The NBRA BID held its Annual Meeting at a local stakeholder restaurant, where it
provided a review of the financial standing of the NBRA, reviewed marketing and
promotion results, discussed goals objectives and programs for the upcoming fiscal
year, and obtained feedback from the general membership.
Fiscal Year (FY) ODeratina Results
During FY 2015-2016, $68,354 was carried over from FY 2014-2015. NBRA collected
approximately $131,000 in stakeholder assessments and approximately $6,300 in stakeholder
assessment late fees. The City contributed $20,000 as the third installment of a five-year
commitment to support the BID. NBRA received $26,000 in participation fees for 2016 Newport
Beach Restaurant Week, and a grant of $10,000 from the City in support of Newport Beach
Restaurant Week. Total income for FY 2015-2016 is expected to be approximately $261,654.
NBRA will spend by fiscal year end approximately $224,571 for approved activities, funded by
the FY 2015-2016 income. NBRA's ending cash balance at June 30, 2016 is expected to be
approximately $37,000 will carry over to FY 2016-2017.
Conclusion
The members of the Newport Beach Restaurant Association thank the Newport Beach City
Council for its continued financial support and efforts on behalf of the NBRA.
NBRA BID FY 2015-2016 Annual Report I Page 9 of 10
5-12
Newport Beach Restaurant Business Improvement District
Operating Budget
July 1, 2016 — June 30, 2017
Carryover from 2015-2016
Stakeholder Assessments
Assessment Late Fees
City Funding
Event Income — Participati�
Event Income — City Grant
150K Less 10%
Fees
$37,000
$135,000
$6,500
$20,000
$25,000
$10,000
Total $233,500.00
EXPENSES
Advertising I Media
TOTALL
$30,000
Event Marketing & Operational Expenses
$60,000
E -Newsletter I Website Content Bloggers
$12,000
Digital Marketing SEO
$7,500
Collateral
$5,000
Website Maintenance
$5,000
Graphic Design I Branding
$2,000
Social Media Promotions
$2,000
Public Relations
$2,000
Annual Meeting
$2,000
Community Event Participation
$2,500
Strategic Planning Miscellaneous Expenses
$8,000
Research
$5,000
Marketing Consultation I Agency Fee
$60,000
BID Administration
$18,000
Operating Expenses I Insurance
$12,000
Dues I Memberships
$500
Total $233,500.00
NOTE: The NBRA BID has an amendment to its stakeholder categories and assessment
levies before the City Council. Should the amendment pass, the NBRA BID would amend
its FY 2017 budget as follows:
Stakeholder Assessments
Advertising I Media
Digital Marketing I SEO
Collateral
Graphic Design I Branding
Public Relations
1 O Less 10%
$189,000
$75,000
$12,000
$10,000
$2,500
$3.000
NBRA BID FY 2015-2016 Annual Report I Page 10 of 10
5-13
ill O
%r" Y TJ P C*;7.TT; PT.
79% of all NBRW Diners Reside Outside of Newport Beach
DINER LOCALE CONSUMER
FIT
Orange County 75%
Los Angeles 9% 76%
San Diego I IE 10% Ordered Items In Addition
California I Int'I 6% to NBRW Menu
OC DINERS TRIED A NEW
Newport Beach 29% RESTAURANT
Irvine 13%
Costa Mesa 12% 83%
Huntington Beach 4% During A
Other 43% Prior NBRW
LIKELIHOOD TO
RECOMMEND
9 • �j
Would Recommend to
A Friend or Colleague
OVERALL
VAI IIF
94%
Excellent
Very Good I Good
NEWPORT BEACH
RESTAURANT WEEK
Event Metrics
_W
:M
�
Participating Restaurants
60
64
61
New Restaurants
-
15
17
OpenTable Restaurants
34
38
35
OpenTable Diners
2,455
51081
5,941
City Grant Revenue
$6,000
$16,000
$10,000
Participating Restaurant Revenue
$19,924
$29,100
$28,700
OpenTable Revenue
-
-
$1,300
Total Revenue
$25,924
$45,100
$40,000
Event Expenses
$821826
$49,446
$57,856
In -Kind Support (VNB, DNB, Partners)
-
$301978
$45,601
Advertising & PR Impressions
-
55,201,000
176,520,970
Estimated Consumer Spend*
-
$2.6 million
$3.1 million
* Estimated spend based on OpenTable Data
5-15
0N=WPORT B_ACH
RESTAURANT
® ASSOCIATION
111101 N
N.=WPORT B-ACH
ATTACHMENT C
PARTNER PROGRAM
Connect with the Newport Beach culinary community through the Newport Beach
Restaurant Association (NBRA) and Dine Newport Beach Partner Program.
Partnership is open to individuals and businesses that would like to associate with
and support the NBRA and Dine Newport Beach.
Partners have the opportunity to promote their services and business to hundreds
of Newport Beach Restaurants, as well as thousands of Dine Newport Beach diners
throughout the year under this annual program.
PARTNER BENEFITS
® Included on the partner page of the Dine NB website with link to partner site
• Included in (1) Newsletter - Either NBRA News or Dine NB Newsletter
• (1) Editorial Blog Post on Dine NB website
• Advertising and Sponsorship Opportunities
• Opportunity to create a special offer or discount that is promoted
directly to NBRA restaurants
• Invited to Partner Events:
11
NBRA Neighborhood
Mixers
® • •
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NBRAAnnual
Meeting I Dinner
ANNUAL PARTNERSHIP FEE $300
PARTNERSHIP ONLINE APPLICATION
Apply online at DineNB.com/Partner
Partnership subject to approva
DineNlB.com
Newport Beach & Co
Annual Dinner
Newport Beach & Co.
Holiday Reception
W® dinenewportbeach
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ABOUT NEWPORT BEACH RESTAURANT ASSOCIATION
The Newport Beach Restaurant Association (LABRA) is a non-partisan, non-profit
cooperative marketing organization that brands Newport Beach dining and
promotes the commercial welfare of restaurants and the foodservice industry in the
City of Newport Beach, California. Comprised of over (400) restaurants and
foodservice operators, NBRA was founded in 1996 and is an official Business
Improvement District (BID) of the City of Newport Beach.
ABOUT DINE NEWPORT BEACH
Dine Newport Beach is a strategic marketing initiative cooperatively created and
managed by the Newport Beach Restaurant Association and Newport Beach &
Company. It is designed to enhance the economic vitality of the Newport Beach
culinary community by showcasing and promoting Newport Beach, California as
Orange County's premier dining destination offering innovative cuisine, fresh fare,
diverse experiences and a variety of exceptional restaurants. Dine Newport Beach
connects with thousands of diners every week through its website DineNB.com
and through engagement with the followers on all of its social Channels.
DineNB.com
W® dinenewportbeach
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ATTACHMENT D
RESOLUTION NO. 2016 -
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS
INTENTION TO RENEW THE NEWPORT BEACH
RESTAURANT ASSOCIATION BUSINESS
IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS
FOR THE FISCAL YEAR OF JULY 1, 2016 TO JUNE 30,
2017, AND FIX THE TIME AND PLACE OF A PUBLIC
HEARING
WHEREAS, the Newport Beach Restaurant Association Business Improvement
District ("NBRA BID") was established in 1995 pursuant to the Parking and Business
Improvement Area Law of 1989, California Streets and Highways Code, Sections 36500
et seq., ( "1989 Law"), which requires an annual report to be filed and approved by the
City Council for each fiscal year;
WHEREAS, the Advisory Board, known as the NBRA BID Board of Directors,
has prepared an Annual Report for the 2015-2016 fiscal year which is on file in the
Office of the City Clerk; and
WHEREAS, on May 24, 2016, the NBRA BID Annual Report was filed and
approved 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 July 1, 2016 to July 1, 2017 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, 2016 to June 30, 2017 pursuant to the 1989
Law. Such benefit assessment shall be as follows:
A. For establishments with fewer than eleven (11) employees, the
assessment shall be a flat Ninety -Five Dollars ($95).
B. For establishments with greater than ten (10) employees, and a license
tax less than Six Hundred Dollars ($600), the benefit assessment shall be
one hundred percent (100%) of the annual business license tax as
established pursuant to Chapter 5.08 of the Newport Beach Municipal
Code plus an additional Sixty -Five Dollars ($65).
C. For all businesses whose license tax is Six Hundred Dollars ($600) or
greater, the benefit assessment shall be one hundred percent (100%) of
the annual business license tax as established pursuant to Chapter 5.08
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5-18
Resolution No. 2016 -
Page 2 of 3
of the Newport Beach Municipal Code, plus an additional One Hundred
Forty -Five Dollars ($145).
Section 3: The penalty for delinquent payments shall be equal to that
established for delinquent business license fees pursuant to Chapter 5.04 of the
Newport Beach Municipal Code, providing that the penalty to be added shall in no event
exceed fifty percent (50%) of the assessment amount due.
Section 4: The benefit assessments shall be collected by the City, or its
designee, in one annual installment. The assessment for new businesses shall be pro-
rated according to the number of full months remaining in the NBRA BID's fiscal year.
Section 5: The improvements and activities to be funded by the benefit
assessments shall include only the following:
1. Marketing, advertising, and public relations
2. Brochure development and distribution
3. Promotion of public events
4. 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 is described in the NBRA BID Fiscal Year 2015-
2016 Annual Report, which is on file with the Office of the City Clerk located at 100 Civic
Center Drive, Bay 2E, Newport Beach, CA 92660.
Section 6: Any food service business (such as restaurants, groceries with a
dine in or take-out food service, mini -marts, gas stations with take-out food service, and
bars serving food) 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.
Section 7: The time and place for a public hearing on the NBRA BID renewal
is set for 7 p.m. or as soon thereafter as the matter may be heard on June 14, 2016, at
the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660.
Section 8: During the public hearing, the City Council shall hear and consider
all protests against the establishment area, or the furnishing of specified types of
improvements or activities within the area. Protests may be made orally or in writing, but
if written shall be filed with the City Clerk at or before the time fixed for the hearing and
contain sufficient documentation to verify business ownership and validate the particular
protest. If written protests are received by the owners of the businesses within the
NBRA BID which pay fifty percent (50%) or more of the total assessments to be levied,
2
5-19
Resolution No. 2016 -
Page 3 of 3
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.
Section 9: Further information regarding the proposed NBRA BID renewal
may be obtained at the City Manager's Office, 100 Civic Center Drive, Bay 2E, Newport
Beach, CA 92660; 949-644-3031.
Section 10: The City Clerk is directed to provide notice of the public hearing in
accordance with Streets and Highways Code Sections 36523 and 36541.
Section 11: The City Council finds the adoption of this resolution of intention is
not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect
physical change in the environment) and 15060(c)(3) (the activity is not a project as
defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title
14, Chapter 3, because it has no potential for resulting in physical change to the
environment, directly or indirectly.
Section 12: If any section, subsection, sentence, clause or phrase of this
resolution is, for any reason, held to be invalid or unconstitutional, such decision shall
not affect the validity or constitutionality of the remaining portions of this resolution. The
City Council hereby declares that it would have passed this resolution, and each
section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any
one or more sections, subsections, sentences, clauses or phrases be declared invalid
or unconstitutional.
Section 13: This resolution shall take effect immediately upon its adoption by
the City Council and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 24 day of May, 2016.
ATTEST:
Leilani I. Brown,
City Clerk
Attachment: Exhibit A (Boundary Map)
Diane B. Dixon,
Mayor
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5-20
Exhibit A
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