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HomeMy WebLinkAbout04 - Amend the Stakeholder Business Structure and Annual Assessments Levied for the NBRABIDTO: FROM: CITY OF NEWPORT BEACH City Council Staff Report July 12, 2016 Agenda Item No. 4 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Dave Kiff, City Manager - 949-644-3001, dkiff@newportbeachca.gov PREPARED BY: Mary Locey, Management Analyst/BID Liaison PHONE: 949-644-3031 TITLE: Introduction of an Ordinance to Amend the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA BID) requests an amendment to its stakeholder structure and annual assessments levied to improve the alignment of the marketing and public relations benefits for its stakeholder businesses. 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; and b) Introduce Ordinance No. 2016-11, An Ordinance of the City Council of the City of Newport Beach, California, Amending the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association Business Improvement District, and pass to second reading on August 9, 2016. FUNDING REQUIREMENTS: There is no fiscal impact to the City's General Fund related to this item. If the City Council ultimately approves the proposed changes, the new assessments levied would increase the NBRA BID's revenues by approximately $54,000 in fiscal year 2016-2017. DISCUSSION The Newport Beach Restaurant Association Business Improvement District (NBRA BID) was formed in 1995 pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500 et seq., for 4-1 Introduction of an Ordinance to Amend the Stakeholder Business Structure and Annual Assessment Levied for the Newport Beach Restaurant Association Business Improvement District July 12, 2016 Page 2 the purpose of financing activities and programs to benefit businesses located and operating in the area. The NBRA BID territory encompasses any food -service business operating within the boundaries of the City of Newport Beach. Establishment of the NBRA BID was at the request of local food -service business owners for the purpose of marketing Newport Beach as a dining destination. Per the 1989 Law, membership is mandatory for the identified businesses within the BID and the annual assessments are based on City Council Resolution. The NBRA BID Board of Directors, which serves in an advisory capacity to the City Council, developed a three-year Strategic Business Plan (Plan) in FY 2013. The Plan identified several priority initiatives and activities, one of which included an evaluation of the NBRA BID's assessment fee structure. Proposed Amendment to Stakeholder Structure Since its inception, the NBRA BID has assessed its stakeholder businesses based on the amount of business license paid and the number of employees reported to the City of Newport Beach (City) through the business license process. The current assessments are based as follows: Current Assessment Levels Assessment Levy Less than 10 employees $95 More than 10 employees and pay less than $600 for a City business license 100 percent of business license plus $65 Pay more than $600 for a City business license 100 percent of business license plus $145 At its March 23, 2016 annual meeting, the Board voted to recommend the City Council's approval of new stakeholder categories and assessment levies as follows: Proposed Stakeholder Category Assessment Levy Full Service Restaurant $600 Fast Casual Restaurant $500 Grocery or Market $500 Coffee, Tea, or Specialty Shop $150 Desserts, Bakery or Treat Shop $150 Juice Bar or Smoothie Shop $150 Catering Company $150 While the Board was considering the new assessment structure, several other methods were reviewed such as assessing based upon building occupancy, seating capacity or dining square footage. However, these numbers would have to be reported by the 4-2 Introduction of an Ordinance to Amend the Stakeholder Business Structure and Annual Assessment Levied for the Newport Beach Restaurant Association Business Improvement District July 12, 2016 Page 3 individual operators and, similar to the reporting of the number of employees, would be difficult to confirm. Consideration focused on the main goal of the NBRA BID, to continue to market Newport Beach as a dining destination. This has become increasingly competitive as other cities continue to grow their culinary communities. With this understanding, the Board felt the greatest benefit would be received by stakeholders operating full service and fast casual restaurants. Therefore, the above noted seven categories were created and corresponding assessments assigned. As a part of the recommendation of the new assessment structure, the Board felt it was necessary to eliminate gas stations that sell food and mini marts from the NBRA BID. Further, the majority of the grocery stores and markets were paying some of the highest assessments ranging from $771 to $956 annually. As many of the grocery stores offer hot, convenience foods and provides places for sit-down dining, the Board believes they will continue to receive value as a NBRA BID stakeholder. Sample Assessment Comparisons The Board recognizes that the current structure is placing larger assessments on the businesses employing more people instead of the businesses which receive a greater benefit from the BID's strategic marketing efforts. By creating different categories and assessment levels, the NBRA BID Board believes the value of the assessment will be aligned with the benefit received by its stakeholders. Using the proposed amended assessment structure of categories, the following is a sampling of businesses that will receive a reduced annual assessment. New Category Stakeholder Business Current Assessment New Assessment Full service Beachcomber Cafe $956 $600 Fast casual Pita Jungle $643 $500 Grocer /market Bristol Farms $956 $500 Coffee/tea/specialty Starbucks $563 $150 Desserts/bakery/treats See's Candies $315 $150 Juice/smoothie Pressed Juice $419 $150 Catering company 24 Carrots Catering $347 $150 4-3 Introduction of an Ordinance to Amend the Stakeholder Business Structure and Annual Assessment Levied for the Newport Beach Restaurant Association Business Improvement District July 12, 2016 Page 4 Below are samples of businesses that will have an increased annual assessment: New Category Stakeholder Business Current Assessment New Assessment Full service The Alley Restaurant $427 $600 Fast casual Sessions West Coast Deli $323 $500 Grocery/market Hershey's Market $312 $500 Coffee/tea/specialty Vin Goat $95 $150 Desserts/bakery/treats Pinkberry $95 $150 Juice/smoothie Juice Served Here $95 $150 Catering company Seaside Catering $95 $150 NBRA BID Stakeholder Benefits In 2013, the City conducted a request for proposals (RFP) for NBRA BID marketing services. Through a competitive process, the Board selected Newport Beach & Company (NB&Co.) for providing services through a City contract. NB&Co. has been instrumental to the growing success of the NBRA BID's marketing efforts through the creation of its brand Dine Newport Beach. The most public facing component is the dinenb.com website that showcases the stakeholder businesses through the online restaurant guide; posts with dining offers and promotions as well as culinary events; and there is a blog for culinary news which further highlights stakeholder businesses. The dinenb.com website has had a 30 percent increase in visits year over year. Strategic advertisement is another value of the NBRA BID. Full, print campaigns are placed each season in a variety of regional and local magazines such as Dining Out Magazine, Laguna Beach Magazine, Orange Coast Magazine, Newport Beach Magazine, and Locale Magazine. Advertising is placed in other regional and local pieces such as the OC Guestbook, OC Official Visitor Map, OC Weekly and The Daily Pilot. In addition, Internet advertising is deployed through sites such as Facebook, TripAdvisor and Google. The weekly Dine Newport Beach newsletter, which has had a 300 percent increase in subscribers year over year, provides a brief write up on several of the local eateries, and includes local culinary events and a neighborhood spotlight. Another unique service for the NBRA BID is the Visit Newport Beach concierge at Fashion Island. Visitors can call and visit in person to receive personal assistance locating a place to dine and even receive assistance making reservations. Lastly, one of the biggest culinary events managed by the NBRA BID is the annual Newport Beach Restaurant Week. The event has steadily seen an increase in participating restaurants with over 60 restaurants in the January 2016 event. In addition, the online reservation system, OpenTable, reported a year -over -year increase of 17 FrE Introduction of an Ordinance to Amend the Stakeholder Business Structure and Annual Assessment Levied for the Newport Beach Restaurant Association Business Improvement District July 12, 2016 Page 5 percent in the number of diners participating in Restaurant Week and there were over 176 million advertising and media impressions generated for the event. The NBRA BID Board volunteers countless hours to achieve the following objectives: 1. Promote Newport Beach restaurants and stakeholders and showcase the local culinary community to increase diner frequency and generate stakeholder sales. 2. Grow awareness of the Dine Newport Beach brand and the Newport Beach dining destination. 3. Foster the Newport Beach culinary community 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. The NBRA BID Board has discussed the proposed stakeholder amendment during several of its public board meetings as well as providing email and written communications to the stakeholder businesses. Following the City Council's approval of Resolution No. 2016-81, City staff mailed letters to the stakeholders explaining the amendment and included copies of the resolutions of intention. Thus, City staff recommends adoption of Ordinance No. 2016-11, An Ordinance to Amend the Stakeholder Business Structure and Annual Assessments Levied for the Newport Beach Restaurant Association (Attachment A). ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Ordinance to Amend the NBRA BID Structure and Annual Assessments Levied 4-5 ATTACHMENT A ORDINANCE NC. 2016 - AN ORC INA NCEI CH THEI CITY CC UN CIU 019 THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THEI STA KEH C ODER BUSINESS STRL CTURE AND A N NL A U ASISESSMIEINTS LEVIED FOR THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMIPRCVEMENT DISTRICT WHEIREAS, cn November '13, 1995, 11he City Council c11 tIe City c11 Newport E each ("City Council") ac c pted C rc iriarice No. 1995-5E establishing the Nevi pc r1 Beacl RE siiaurant Assiociatic n E usiiness ImprovE meriil C istricl (" N BRA EIC") pc rsuant to the Paiiking and BLsinessi Imprc�emEnt Area Law cf '1989, Califcrnia StreElo anc Highways Cc c E Sectic n 36500 611 SE Q. 111989 L aw"); WHEIREAS, cn NoverribEr 24, 2009, the City Council adcrIiled Cridinancie No. 2009-26 that amEnded the NERAI BID'si annual benEfiil assesorrient levy; WHEIREAS, in past years, the NBRAI BIC referrEc tc businEssies within the NBRAI BIC as "mErribers" or "merribEr businesses," 111E NBRAI EID Adviscry Boarc of Directors thinksi it is appropriate tc use the ilerm "stakeholdeii tusinEsses" or "sillakE he lders" gc irig forward tc refer tc bi.sinesisies Ic catec within the NBRAI BID; WHEIREIAS, the 1989 Law allows the City Council to amend the benefit assessmEnt levied on stake lcldEr businessEEl within the NBRAI BIC; WHEIREAS, the NBFA BIC Advisory Board of Directors hasi rEgcested that the City Cc unail arriend the siakE he Ider t usiness strucllurE and assessments levied cn its silakelclder busiinessEsi; WHE REIAS, c n , uriE 28, 2016, the City Cc uncil adoptec Resc lution h c. 20.1 EI -81 declaring iilsi intEnticn 110 arriend tIe stakeholderi struciture ilo include the fcllo"ing busiinessES within the LABRA BID: any ilocd-sErvicE business within 11hE toundaries of ire city of Newperl BEacI, such as restaurants, markeisi will dine -in or 11akE-0ut focd siervice, bars serving fccd, cEssiert shops, aoffeE shcps, juicE bars, ciatering ccrripanies or sirriilar type c 11 fcc d rE IatE d bL siriess; WHE REAS, o n une 28, 2016, 11` E City Cc unci) adopted RE SOIL tic n Nc . 20'16-81, fl. r1 hE r c E Glaring its into ntic n to amE rid the N BRAI 81D's annual t enefit as Eiessrrients as dE sicribed I e nein; WHEREAS, the Ciily Council held a public mEeting regarding ire prioposEc amencirrieni c11 the sllakE holder sllructure and the annual beneilii assessmerill levy on, my 12, 2016, where the City Council sioliciied tEstimoriy ilrom 11hE publics and rrierribers cf the NBRAI BID; and WHEREAS, 11hE Ciiy Ccuncil Iasi schedulec a public hearing on August 9, 2016, where rriembers of 11hE public and the NBRAI BID are invitec to give 1lestirriony anc ,P C rdinancE No. 2016- Fage 2 of _ submit vAritien protests reganding thEi pncposed amendmeiriil of the stakel-01Cer structure and ihEi annual benEifiil assElssmEnll levy; and WHBRIBAS, ihEre was no vAritiein majcrity prctest cnden California Streells anc Highways Code ection 36525 tl- at woL Id prevent the City Cc L nail from adopting this ordinancie. N C W THORIBFORB, the City Council of 11hE City of N eve pc ri Beach ordains as fc I IMA s: Section 1: SEiciiion 1 of C rdinancEi No. 2009-26 is amended in iisi entirety and replacied with the ilollmA ing: Tale silaklehc/cer sirucilure in thle Restaurant Asscciallicr,i Business Imclrcvement DislIrfct stelaV incluce lltb foillowinig businesses: any fcco- service business vv,iilt4r,i lltb blouricarvies of iltb City cf Nlevv,cicrt Beachl, such) as restaurarills, markbils with) dirie-in or take -cull fcoc service, Mars serving fccd, cessert sticps, coffEe stbrjs, juice bars, capering ccmpanies or similar type cffocd related blusinEss. Section 2: .IEiciticri 2 of CrdinancEi No. 2009-26 is arrerided in iilsi erifirety and replaced with the follow ing: Rb City Ccunci)l Jevies, imcicses, aria crcer thle cc//ecllicr,i cf a b6nefill assessment levied uclori peracris cionduciling business wiffiri iltb Resile uranit Assc cia llicri Business Imclrcvemerit ElistAicll. Su& benefill e ssessment levied shleM b1e as ichlc ws: A. Fulil service restaLira rit $660 B. Fa s1I casua i re s1a urs rat $560 C. Grccieriyl crmarkleil $566 D. Coffee, tea or sgeciaftyl stop $1510 E. Dessert, bakery or treads $1510 F. i nice bar c r smc c III IiE shlc p $1510 G. Catering ciomclariy $1516 Section 3: SEation 3 cf CrdinancE Nc. 2009-26 is arrerided in iisi eritirEty and replaced with the following: 7hle ,increasec bler,iefit assessmerill corilleiriec in llrlis crWriarice shall be effective S eplembler 9, 20 6. 7hle benefit a sse ssmer,it ,increase shla JV be coNecteo Mcm existing blusiriesses ,in the NIBRA BILI by thle Ciilyl in cne (1) ,circ -rated enr,iue)l inislleknerill. 7hle bleriefit assessment fcr staketbAder businesses estabYshleo aft r Septembler 9, 26 16 she Al be ail iltb ,increases rate, pro -rated according to thle number of fud morillrls remair,iirig in iltle CA Cndinancei No. 2016- Pasg6 3 of _ ABRIA &IDI's fiscal yleari, starting ori itle day of the issuance c / a bussiniess ilicerze by 111�1e City. `-lecticin 4: Tf ei r6citals providEd in il• is ordinanC6 air6 in. Ei and ccrrect and am iriccrperated intc the substairillivei pertion cf this c rdinanC6. Secticin 5: If any sEiciicri, subseicticn, S6n-leinciei, clauses cn phnaS6 of this orc iriaricEi is for any reascri h6ld tc be invalid c r unconsllitutic nail, such decision sl• all no11 affEict 11h6 validity cr ccnstittiicriality of the remaining portions cf this crdinance. Th6 Cily Ccs nciil het6by declarES tl-at it would ha\ei passEid 11his ordinam6 and each sEicllicri, subsEicllicri, S6nteiricEi, claL se c r pr rase herEiof, innespEictiV6 cf ire fact that any on6 or more sEKiiicris, subsections, seiritencies, claL SEA or phraS6s be deiclareic im alid c r uriccristitutional. "-lecticin 6: Tf e Ciiy Council finds the introduciiion and adoptic n of 11his orc inarice is rict sc bject to 11hEi Californias Erivironrriental Quciliiy Act ("CE CA") pursc ari11 -Io Election 15060(c,(12) (thea activity will no11 rEisult in a cinEict or rEieisonably foreseeatle indirect physical change in 11he 6rivinonment) and 1506011c)(3, (the activity is nol a project as dEfined in Section 15378) of the CECA C uidEdiries, Californias Code of Regi. latioris, -flit16 14, Chapter 3, beicaL se it has no pctential tc r ave a significant effecll on tr e Emironrrieirill. Secticin 7: Bmepi as exprEissly modifiEcl in 11his onciriancEi, all otren SEiCions, SubsEicticris, perms, clausEis and pl-rases set forir in an ordinancie r6latEid to the NBRW BID shall reirriain unchanged and shall be in full force anc effect. Secticin 8: The lVaycn shall sign and the City Clerk shall attest 110 the passagEi of 11his ordinancE1. The City ClEirk shall caUS6 the c rc iriancei, ori as SL mmary tr eneicf, lo bEi PL blisheid onC6 in th6 official nem spaper of the City, and it shcill be effecitivei I irty (130; days aftem its adc ptic n. This ordinance Newport Beach day of ATTEST: was introduced at a regular meeting of th. held on the day of , 2016, 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY A EY'S OFFICE AARO . HARP, CITY ATTORNEY Ordinance No. 2016 - Page 4 of ____ City Council of the City of and adopted on the DIANE B. DIXON, MAYOR ATTACHMENT A July 12, 2016 Item No. 4 ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE STAKEHOLDER BUSINESS STRUCTURE AND ANNUAL ASSESSMENTS LEVIED FOR THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT WHEREAS, on November 13, 1995, the City Council of the City of Newport Beach ("City Council") adopted Ordinance No. 1995-55 establishing the Newport Beach Restaurant Association Business Improvement District ("NBRA BID") pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. ("1989 Law"); WHEREAS, on November 24, 2009, the City Council adopted Ordinance No. 2009-26 that amended the NBRA BID's annual benefit assessment levy; WHEREAS, in past years, the NBRA BID referred to businesses within the NBRA BID as "members" or "member businesses," the NBRA BID Advisory Board of Directors thinks it is appropriate to use the term "stakeholder businesses" or "stakeholders" going forward to refer to businesses located within the NBRA BID; WHEREAS, the 1989 Law allows the City Council to amend the benefit assessment levied on stakeholder businesses within the NBRA BID; WHEREAS, the NBRA BID Advisory Board of Directors has requested that the City Council amend the stakeholder business structure and assessments levied on its stakeholder businesses; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81 declaring its intention to amend the stakeholder structure to include the following businesses within the NBRA BID: any food -service business within the boundaries of the city of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81, further declaring its intention to amend the NBRA BID's annual benefit assessments as described herein; WHEREAS, the City Council held a public meeting regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy on July 12, 2016, where the City Council solicited testimony from the public and members of the NBRA BID; and WHEREAS, the City Council has scheduled a public hearing on August 9, 2016, where members of the public and the NBRA BID are invited to give testimony and Ordinance No. 2016 - Page 2 of submit written protests regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy; and WHEREAS, there was no written majority protest under California Streets and Highways Code Section 36525 that would prevent the City Council from adopting this ordinance. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 1 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The stakeholder structure in the Restaurant Association Business Improvement District shall include the following businesses: any food- service business within the boundaries of the City of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business. Certified Farmer's Markets, mini -marts, yachts and charters, banquet facilities, private membership clubs, theaters, and gas stations shall be exempt from the Restaurant Association Business Improvement District's membership. Section 2: Section 2 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The City Council levies, imposes, and order the collection of a benefit assessment levied upon persons conducting business within the Restaurant Association Business Improvement District. Such benefit assessment levied shall be as follows: A. Full service restaurant (e.q., with wait service) $600 B. Fast casual restaurant (e.q., place order at counter) $500 C. Grocery or market $500 D. Coffee, tea or specialty shop $150 E. Dessert, bakery or treats $150 F. Juice bar or smoothie shop $150 G. Catering company $150 Section 3: Section 3 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The revisedinG,. �d benefit assessment contained in this ordinance shall be effective September 9, 2016. The benefit assessment in^�e shall be Ordinance No. 2016 - Page 3 of collected from existing businesses in the LABRA BID by the City in one (1) pro -rated annual installment. The benefit assessment for stakeholder businesses established after September 9, 2016 shall be at the revised�n��e,d rate, pro -rated according to the number of full months remaining in the NBRA BID's fiscal year, starting on the day of the issuance of a business license by the City. Section 4: Section 4 of Ordinance No. 2009-26 is amended in its entiretv and replaced with the followina: The penalty for delinquent benefit assessment payments shall be twenty- five percent (25%) per month, provided that the penalty to be added shall in no event exceed fifty percent (50%) of the assessment amount due. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. The City Council hereby declares that it would have passed this ordinance 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 7: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 8: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in an ordinance related to the NBRA BID shall remain unchanged and shall be in full force and effect. Section 9: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. Ordinance No. 2016 - Page 4 of This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 2016, and adopted on the day of , 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS DIANE B. DIXON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE AARON C. HARP, CITY ATTORNEY ATTACHMENT A July 12, 2016 Item No. 4 ORDINANCE NO. 2016 - AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE STAKEHOLDER BUSINESS STRUCTURE AND ANNUAL ASSESSMENTS LEVIED FOR THE NEWPORT BEACH RESTAURANT ASSOCIATION BUSINESS IMPROVEMENT DISTRICT WHEREAS, on November 13, 1995, the City Council of the City of Newport Beach ("City Council") adopted Ordinance No. 1995-55 establishing the Newport Beach Restaurant Association Business Improvement District ("NBRA BID") pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code Section 36500 et seq. ("1989 Law"); WHEREAS, on November 24, 2009, the City Council adopted Ordinance No. 2009-26 that amended the NBRA BID's annual benefit assessment levy; WHEREAS, in past years, the NBRA BID referred to businesses within the NBRA BID as "members" or "member businesses," the NBRA BID Advisory Board of Directors thinks it is appropriate to use the term "stakeholder businesses" or "stakeholders" going forward to refer to businesses located within the NBRA BID; WHEREAS, the 1989 Law allows the City Council to amend the benefit assessment levied on stakeholder businesses within the NBRA BID; WHEREAS, the NBRA BID Advisory Board of Directors has requested that the City Council amend the stakeholder business structure and assessments levied on its stakeholder businesses; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81 declaring its intention to amend the stakeholder structure to include the following businesses within the NBRA BID: any food -service business within the boundaries of the city of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business; WHEREAS, on June 28, 2016, the City Council adopted Resolution No. 2016-81, further declaring its intention to amend the NBRA BID's annual benefit assessments as described herein; WHEREAS, the City Council held a public meeting regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy on July 12, 2016, where the City Council solicited testimony from the public and members of the NBRA BID; and WHEREAS, the City Council has scheduled a public hearing on August 9, 2016, where members of the public and the NBRA BID are invited to give testimony and Ordinance No. 2016 - Page 2 of submit written protests regarding the proposed amendment of the stakeholder structure and the annual benefit assessment levy; and WHEREAS, there was no written majority protest under California Streets and Highways Code Section 36525 that would prevent the City Council from adopting this ordinance. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Section 1 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The stakeholder structure in the Restaurant Association Business Improvement District shall include the following businesses: any food- service business within the boundaries of the City of Newport Beach, such as restaurants, markets with dine -in or take-out food service, bars serving food, dessert shops, coffee shops, juice bars, catering companies or similar type of food related business. Certified Farmer's Markets, mini -marts, yachts and charters, banquet facilities, private membership clubs, theaters, and gas stations shall be exempt from the Restaurant Association Business Improvement District's membership. Section 2: Section 2 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The City Council levies, imposes, and order the collection of a benefit assessment levied upon persons conducting business within the Restaurant Association Business Improvement District. Such benefit assessment levied shall be as follows: A. Full service restaurant (e.g., with wait service) $600 B. Fast casual restaurant (e.g., place order at counter) $500 C. Grocery or market $500 D. Coffee, tea or specialty shop $150 E. Dessert, bakery or treats $150 F. Juice bar or smoothie shop $150 G. Catering company $150 Section 3: Section 3 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The revised benefit assessment contained in this ordinance shall be effective September 9, 2016. The benefit assessment shall be collected Ordinance No. 2016 - Page 3 of _ from existing businesses in the NBRA BID by the City in one (1) pro -rated annual installment. The benefit assessment for stakeholder businesses established after September 9, 2016 shall be at the revised rate, pro -rated according to the number of full months remaining in the NBRA BID's fiscal year, starting on the day of the issuance of a business license by the City. Section 4: Section 4 of Ordinance No. 2009-26 is amended in its entirety and replaced with the following: The penalty for delinquent benefit assessment payments shall be twenty- five percent (25%) per month, provided that the penalty to be added shall in no event exceed fifty percent (50%) of the assessment amount due. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 6: If any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. The City Council hereby declares that it would have passed this ordinance 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 7: The City Council finds the introduction and adoption of this ordinance is not subject to the California Environmental Quality Act ("CEQA") pursuant to Section 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential to have a significant effect on the environment. Section 8: Except as expressly modified in this ordinance, all other Sections, Subsections, terms, clauses and phrases set forth in an ordinance related to the NBRA BID shall remain unchanged and shall be in full force and effect. Section 9: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published once in the official newspaper of the City, and it shall be effective thirty (30) days after its adoption. Ordinance No. 2016 - Page 4 of _ This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the day of , 2016, and adopted on the day of , 2016, by the following vote, to -wit: AYES, COUNCILMEMBERS NOES, COUNCILMEMBERS ABSENT COUNCILMEMBERS DIANE B. DIXON, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTO - NEY%S OFFICE C� AARON C�-HARP, CITY ATTORNEY