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HomeMy WebLinkAbout06 - Resolution of Intention to Renew the NBRABID and Levy AssessmentsPaR m CITY OF �\`S NEWPORT BEACH cy<`o-P City Council Staff Report May 22, 2018 Agenda Item No. 6 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 949-644-3031 TITLE: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 (Resolution No. 2018-27); and Approve Funding Support Through Fiscal Year 2020-2021 ABSTRACT: The Newport Beach Restaurant Association Business Improvement District (NBRA BID) Board of Directors (Board) has submitted the BID's fiscal year (FY) 2017-2018 Annual Report for City Council approval. The Board Chair has submitted a letter requesting the renewal of the NBRA BID for FY 2018-2019 and for the City to provide ongoing funding support through fiscal year 2020-2021. 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's Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019 Budget; c) Adopt Resolution No. 2018-27, 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, 2018 to June 30, 2019, and Fix the Time and Place of a Public Hearing for June 12, 2018; and d) Approve a commitment of City funding support to the Newport Beach Restaurant Association Business Improvement District through fiscal year 2020-2021. 6-1 Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 2 FUNDING REQUIREMENTS: The City of Newport Beach (City) contracts with a vendor to collect the stakeholder assessments on behalf of the City and remits the money directly to the NBRA BID's bank account. The monies are used for funding the BID's activities described in the attached annual report. In addition to the member assessments, in 2013, the City Council agreed to provide $40,000 each year for five years (ending FY 2017-2018) to support the NBRA BID efforts. Should the City Council approve the NBRA BID's renewal and the request for ongoing funding support, the City's proposed FY 2018-2019 budget includes sufficient funding to continue to support the NBRA BID with a City contribution of $40,000. It will be expensed to the City Manager's Office, Economic Development Division, 01020202 841046. 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 the 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 within the city boundaries, 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 food -related business. (A boundary map is attached to the Resolution.) The NBRA BID is nearing the end of its FY 2017-2018 operating period and the Board, which serves in an advisory capacity to the City Council, has requested renewal of the BID for FY 2018-2019. Pursuant to the 1989 Law, an annual report must be prepared and filed with the City Council and a public hearing (scheduled for June 12) must be held prior to the BID's renewal. The NBRA BID Board 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 2017-2018 accomplishments and revenues as well as its proposed activities and budget for the upcoming fiscal year. Fiscal Year 2017-2018 Accomplishments The NBRA BID Board kicked off the fiscal year developing an updated three-year strategic plan. Specific areas of focus identified in the strategic plan include increase marketing awareness and conversion; enhance stakeholder benefits; elevate community profile; and ensure financial and administrative effectiveness. A brief highlight of some of the activities from FY 2017-2018 are listed below. 1. Restaurant Week. The 2018 Newport Beach Restaurant Week was produced with 57 stakeholder businesses participating. The event celebrated the 12t" anniversary of Restaurant Week and resulted in a 20 percent growth in customers and an estimated $2.9 million in consumer spending. In addition to Restaurant Week, promotional support was provided to six local culinary events. 6-2 Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 3 2. Marketing. The major focus of the NBRA BID is to provide strategic and comprehensive marketing to keep dining in Newport Beach top of mind for consumers. Working in partnership with Newport Beach & Company (NB&Co.), marketing efforts included updating the Dine Newport Beach brand creative; improved stakeholder listings and two new dining guides—catering and group dining— were launched on the website (dinenb.com); and, for the first time, a consumer event with 125 paid guests was held at the Lincoln Experience Center to kick-off Restaurant Week. The annual report lists the remainder of the NBRA BID's FY 2017-2018 activities. Fiscal Year 2017-2018 Operating Results and FY 2018-2019 Proposed Budget The NBRA BID's total income for FY 2017-2018 is expected to be approximately $294,500. The year-end expenditures for the approved activities is estimated to be $270,500. It is estimated that roughly $24,000 in retained earnings will remain on deposit. The proposed operating budget for FY 2018-2019 is attached to the NBRA BID's annual report for the City Council's approval. The Board has identified its activities for the year and has allocated its funding accordingly, as reflected in the table below. FY 2018-2019 Operating Budget Income Stakeholder Assessments 203,000 Special Event Fees & Income 30,000 City Funding 40,000 City Special Event Grant Funds 9,000 Total Income $282,000 Expenses Agency Fees 85,500 (marketing, operational, research and website) Administration and Accounting 40,600 (administration and accounting fees, bank fees, postage, supplies, dues and governance meeting) Event Management 56,500 (marketing, operation and community partners) Advertising 72,000 (digital, collateral materials and consumer advertising) Public Relations 27,400 (media relations, bloggers, contractors and social media) Total Expenses $282,000 Net Income $0 6-3 Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 4 Future of the NBRA BID During last year's renewal process, Council Member Dixon requested staff review reforming the two remaining BIDs (NBRA and the Corona del Mar BID) from a 1989 Law BID to a 1994 Law BID. BIDs formed under the 1989 Law are, essentially, committees of the City and are subject to City oversight and most of its policies and procedures. This can be quite frustrating to small business owners used to making quick and independent decisions. And, for many years, managing the 1989 Law BIDs took a significant amount of staff time. BIDs formed under the 1994 Law, however, have greater (though not total) independence. The City has a successful 1994 Law BID in the Newport Beach Tourism Business Improvement District. Thus, the idea of reforming the City's 1989 Law BIDs to 1994 Law BIDs had been discussed for a number of years. In the past two to three years, however, the staff time associated with managing the BIDs has been gradually reduced as the BID Boards and their consultants have assumed more of the day-to-day administrative tasks, and BID has picked up more of the associated costs, of operating the BIDs. The NBRA BID Board has been diligently working on marketing programs and activities to support its member businesses and keep the Newport Beach restaurant market "top of mind" among diners. This fiscal year marks the end of the previously agreed to City provided funding support. The NBRA BID Board met on March 26 and recommended its renewal be submitted to the City Council. As outlined in the BID's budget, the Board is including $40,000 in City support. The NBRA BID Chair submitted a letter to the City Council requesting the BID's renewal and requesting the City provide ongoing funding support to the BID (See Attachment B). Should the City Council agree, the City Manager's Office will continue to include funding in the Economic Development Division's budget in the amount of $40,000 through FY 2021. Conclusion The NBRA BID has been in existence since 1995 and its board members have a long history of working hard over the years to enhance and promote the dining experience in Newport Beach. With the City's ongoing support and funding, the Board will continue its efforts. Thus, City staff is recommending adoption of Resolution No. 2018-27, a Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments for the Fiscal Year 2018-2019, and Fix the Time and Place of a Public Hearing (Attachment C) on June 12, 2018 and allocating City funding support in the amount of $40,000 per year through FY 2021. Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 5 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). ATTACHMENTS: Attachment A — NBRA BID Annual Report and Budget Attachment B — Letter from the NBRA BID Board Chair Attachment C — Resolution of Intention to Renew the NBRA BID 6-5 ATTACHMENT A NTWPORT BEACH �EW�RT RESTAURANT ASSOCIATION Newport Beach Restaurant Business Improvement District Fiscal Year 2017-2018 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, 2018 to June 30, 2019 Mission, Values and Goals Pursuant to its current Strategic Business Plan, 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 • New marketing and media partnerships investigation • Enhanced website/social media engagement • Targeted and measurable annual marketing strategy Communication I Education • Engaging investor outreach strategy and program execution • Relevant educational program development based on stakeholder needs • Ongoing calendar of events development Community & Stakeholder Relations I Education • Top Foodservice issues identification • Clearinghouse set-up for charitable causes Targeted and measurable annual communications plan with appropriate messaging Financial Resources and Administration • Updated rolling year strategic plan review • Aligned program of work and budget allocations 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. • Enhanced foodservice sector brand marketing • Increased communications of BID stakeholder benefits • Strengthened community and industry partnerships with higher leveraged results • Stronger selective communitywide foodservices event involvement and promotion NBRA BID 2018 Annual Report I Page 1 of 9 Objectives 1. Promote Newport Beach 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 to increase stakeholder 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) 2018-2019 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 I Dining Destination Awareness NBRA BID will deploy integrated online, print, radio, public relations and social media campaigns throughout the year during restaurant need periods, dining holidays and local signature culinary events. Website 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. 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 2018 Annual Report I Page 2 of 9 6-7 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 radio 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. Video Content 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. 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. NBRA BID 2018 Annual Report I Page 3 of 9 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, California Restaurant Association and the Newport Beach Chamber of Commerce. Annual Meeting The NBRA BID will hold its Annual Meeting in March at a local venue, 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 Marketina. Administration & Accountin 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. 3. The Cost of These Activities is Projected as Follows: Office Supplies Postage Bank/Merchant Fees Membership Dues Governance Meeting Expenses Independent Contractors Blo ers TOTAL $950 $850 $2,500 $300 $3,500 $10,000 $12,000 Marketing Consultant Fees $60,000 BID Administration Fees $18,000 BID Accounting Services Fees $18,000 Operational Expenses & Insurance $12,000 Advertising - Consumer $60,000 Community Partner Events $3,000 Event Marketing Expenses $40,000 Event Operating Expenses $10,000 Research $5,500 Collateral Production Expenses $5,000 Social Media $2,400 Website Maintenance $8,000 Digital Advertising $7,000 Media Relations $3,000 ` Total Expenses $282,000.00 NBRA BID 2018 Annual Report I Page 4 of 9 0=0 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 at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the year. The benefit assessment will be levied upon persons conducting business within the Restaurant Association Business Improvement District as follows: Full Service Restaurant (e.g., with wait service) $600 Fast Casual Eatery (e.g., order at the counter) $500 Grocery or Market $500 Coffee, Tea or Specialty Shop $150 Dessert, Bakery or Treat Shop $150 Juice Bar or Smoothie Shop Catering Company $150 $150 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 annual assessment amount due. 5. Sources of Contributions Other Than Levied Assessments In addition to the anticipated income from the levied assessments and late fees, the NBRA BID FY 2018-2019 budget includes $40,000 in funds from the City. NBRA estimates receiving $30,000 in fees for special events, in addition to $9,000 in potential grant funding from the City for a special event. Stakeholder Assessments Special Event Fees & Income $203,000 $30,000 City of Newport Beach Matching Funds $40,000 City of Newport Beach Special Event Grant Funds $9,000 Total Operating Income $282,000.00 6. Accomplishments in Fiscal Year 2017-2018 FY 2017-2018 was a successful year for the NBRA BID as it completed the following projects and initiatives: • In partnership with Newport Beach & Company, the NBRA BID continued to evolve the consumer facing Dine Newport Beach brand with new brand creative to market restaurants, foodservice establishments and the local culinary community to diners. 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. • The website was updated throughout the year with robust content and videos on the Newport Beach Culinary Community, dining guides, stakeholder offers and events, NBRA BID 2018 Annual Report I Page 5 of 9 6-10 restaurant industry news and NBRA BID information. New online dining guides created for the website include: o Catering Dining Guide o Group Dining Guide • 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 2017 Summer Campaign — 52 Weeks of Dining 0 2018 Restaurant Week Campaign — Beyond the Menu 0 2018 Spring Campaign — Your Table Awaits 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 Weekly o OC Guestbook o LA Times o OC Official Visitor Map o The Daily Pilot o DiningOut Magazine o NB Indy o Newport Beach Magazine o NBFF Variety Issue o Laguna Beach Magazine 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 o Pandora o Digital Display for both Mobile & Desktop viewing • 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. • 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 50 members of the media at a reception to kick-off Newport Beach Restaurant Week in January at Lincoln Experience Center. • The NBRA BID hosted a consumer event at the Lincoln Experience Center "Culinary Journey Kickoff Event" which followed the media event. This event included 125 paid guests and 24 VIP guests enjoying bites from 7 NBRA restaurants • 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. NBRA BID 2018 Annual Report I Page 6 of 9 6-11 • 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. • 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 The NBRA BID and Dine Newport Beach provided promotional support to local culinary events including: o Golden Foodie Awards o Newport Beach Wine & Food Festival o Newport Beach Film Festival o Shop & Dine in CDM o Christmas Boat Parade o Pacific Food & Wine Classic • The NBRA BID produced the 2018 Newport Beach Restaurant Week with 57 participating restaurants. The event celebrated the 12th anniversary of Restaurant Week marking "Beyond the Menu." The marketing and promotional efforts included: o Advertising — Print ads appeared in 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, Instagram, TripAdvisor, Los Angeles Times Digital Media, Eventful, VisitNewportBeach.com, DineNB.com and OpenTable. Broadcast advertising appeared on 104.3 MyFM, and Pandora. Paid and in-kind advertising generated over 6 million impressions. o PR Campaign — Editorial content, blogger coverage, calendar listings and a reception to promote the event generated 32 articles, 100 social media posts and over 558,000 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 104.3 MyFM and NBTV. The campaign resulted in generating 301 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, YELP and Irvine Company email database over 1.3 million consumers throughout LA and Orange County. o Results — OpenTable reported an avg growth in customers by 20percent; 91 percent of NBRW consumers would recommend to a friend Restaurants reported sales growth of 18 percent during Restaurant Week. There were over 13 million advertising and media impressions generated for the event. The overall event resulted in an estimated consumer spend of $2.9 million. • 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. NBRA BID 2018 Annual Report I Page 7 of 9 6-12 • 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. • The NBRA BID participated and/or contributed to the following community programs and events: Newport Beach Mayor's Dinner, California Restaurant Association Orange County Chapter, Newport Beach & Company Annual Marketing Outlook Dinner, Newport Beach Police Appreciation Breakfast and other community events. • The NBRA BID continued to maintain relationships with Newport Beach & Company, OC Visitors Association, California Restaurant Association and the Newport Beach Chamber of Commerce. • Newport Beach & Company is under contract with the NBRA BID to handle all marketing, public relations, communications, website management BID administrative services and accounting services. • 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. • The NBRA conducted a survey of it stakeholders and a planning session to develop an updated three-year strategic plan for the organization. • The NBRA BID conducted outreach and recruited new stakeholders to serve on the NBRA BID's Board of Directors. • The NBRA BID held its Annual Meeting on the Just Dreamin' yacht (part of the Hornblower boats), 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 2017-2018, NBRA collected approximately $189,000 in stakeholder assessments and approximately $26,500 in stakeholder assessment late fees. The City contributed $40,000 as the fourth installment of a five-year commitment to support the BID. NBRA received $31,275 in participation fees for 2018 Newport Beach Restaurant Week, and a grant of $9,000 from the City in support of Newport Beach Restaurant Week. Total income for FY 2017-2018 is expected to be approximately $294,500. NBRA will spend by fiscal year end approximately $270,500 for approved activities, funded by the FY 2017-2018 income. Cnnclusinn The stakeholders of the Newport Beach Restaurant Association BID wish to thank the Newport Beach City Council for its continued financial support and efforts on behalf of the NBRA. NBRA BID 2018 Annual Report I Page 8 of 9 6-13 \:z-WPORT BEACH RESTAURANT ASSOCIATION Newport Beach Restaurant Business Improvement District Operating Budget July 1, 2018 — June 30, 2019 Stakeholder Assessments $203,000 Special Event Fees & Income $30,000 Cit of Newport Beach MatchingFunds $40,000 City of Newport Beach Special Event Grant Funds $9,000 Total Income $282,000 EXPENSES Office Supplies TOTAL � $950 Postage $850 Bank/Merchant Fees $2,500 Membership Dues $300 Governance Meeting Expenses $3,500 Independent Contractors $10,000 Bloggers $12,000 Marketing Consultant Fees $60,000 BID Administration Fees $18,000 BID Accounting Services Fees $18,000 Operational Expenses & Insurance $12,000 Advertising — Consumer $60,000 Community Partner Events $3,000 Event Marketing Expenses $40,000 Event Operating Expenses $10,000 Research $5,500 Collateral Production Expenses $5,000 Social Media $2,400 Website Maintenance $8,000 Digital Advertising $7,000 Media Relations $3,000 Total Expenses 1 $282,000 NBRA BID 2018 Annual Report I Page 9 of 9 6-14 ATTACHMENT B NEWPORT BEACH RESTAURANT ASSOCIATION May 9, 2018 Newport Beach City Council 100 Civic Center Drive Newport Beach, CA 92660 Re: Request for Continued Funding Support for NBRA BID Dear Mayor Duffy and City Council Members, SEW Pp�,T CqC! Fp Aty�P On behalf of the Advisory Board of Directors for the Newport Beach Restaurant Association Business Improvement District (NBRA BID), I would like to thank the City Council for its support of the NBRA BID over the past 23 years. In addition to the roughly $189,000 the NBRA BID receives annually from member assessments, the City has provided the NBRA BID with an annual support of $40,000 in a five-year agreement, which concludes at the end of FY 2017-18. As we look forward to dedicating our time and efforts toward the BID's 2018- 2019 FY goals and priorities, the Board would like to request continued City support funding at the same contribution of $40,000 annually for a three- year period beginning FY 2018-2019. On behalf of the NBRA BID, we greatly appreciate the City Council's funding to support the NBRA BID, and we look forward to continuing to showcase the local culinary community that will increase diner frequency and generate local culinary sales. Thank you in advance. Sincerel f, Jordan Otterbein NBRA BID Board President Owner, A Restaurant cc: Dave Kiff, City Manager NBRA BID Board of Directors Gary Sherwin, Newport Beach & Company Tara Finnigan, Deputy City Manager Mary Locey, Public Information/Management Analyst 6-15 ATTACHMENT C RESOLUTION NO. 2018 - 27 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, 2018 TO JUNE 30, 2019, 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 of seq., ("1989 Law"), which requires an annual report to be filed and approved by the City Council of the City of Newport Beach ("City") for each fiscal year; WHEREAS, the advisory board, known as the NBRA BID Board of Directors, has prepared an Annual Report for the 2017-2018 fiscal year which is on file in the Office of the City Clerk ("Annual Report"); and WHEREAS, on May 22, 2018, the Annual Report was filed with 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, 2018 to June 30, 2019, 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, 2018 to June 30, 2019, pursuant to the 1989 Law. Such benefit assessment shall be as follows: Certified Farmer's Markets, mini -marts, yachts and charters, banquet facilities, private membership clubs, theaters, and aas stations. Section 3: The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Newport Beach Municipal 6-16 Resolution No. 2018 - Page 2 of 3 Code Chapter 5.04, 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: A. Marketing, advertising, and public relations; B. Brochure development and distribution; C. Promotion of public events; D. General promotion of restaurant trade activities; E. Educational and training classes for members; and F. Memberships in various organizations deemed to promote dining in Newport Beach. The implementation of these actions is described in the Annual Report, which is on file with the City Clerk's Office located at 100 Civic Center Drive, Bay 2E, Newport Beach, CA 92660. Section 6: 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 food - related business within the boundaries of the City of Newport Beach is part of the NBRA BID, as set forth with greater specificity in the boundary map attached hereto, and incorporated herein by reference. Section 7: The time and place for a public hearing on the NBRA BID renewal is set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 12, 2018, 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, 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. 6-17 Resolution No. 2018 - Page 3 of 3 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 recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. 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: The City Council finds the adoption of this resolution 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 14: This resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 22nd day of May, 2018. ATTEST: Leilani I. Brown City Clerk APP,RQVED AS TO FORM: CITY A QRfiJEY'S OFFICE A-arbn C. City Attor Attachment: Boundary Map Marshall "Duffy" Duffield Mayor 6-18 "I r S 0 os f Miles 0512912 0 1 2 ResiaurankBID—Amid — 1 1 Costa Mesa � i , , 1 If 4-1 IT Newport Beach � Newport Coast f \� r Corona Def Mar I 1I ~ r 1 1 N rJ "I r S 0 os f Miles 0512912 0 1 2 ResiaurankBID—Amid — 6-19 1 1 , 6-19