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HomeMy WebLinkAbout19 - Levying of Assessments and Appointment of the Advisory Board of Directors for the CDMBIDCITY OF tu s NEWPORTBEACH �1FORNCity Council Staff Report June 26, 2018 Agenda Item No. 19 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 PHONE: 949-644-3031 TITLE: Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Corona del Mar Business Improvement District's Fiscal Year 2018-2019 ABSTRACT: The annual renewal of the Corona del Mar Business Improvement District (CdM BID) requires a public hearing to determine if there is a majority protest by the members against the levied assessments or a specific improvement, activity or benefit proposed by the BID for fiscal year 2018-2019. The California Streets and Highways Code Sections 36500 et seq., grants the City Council the authority to appoint an advisory board of directors for business improvement districts formed under the Parking and Business Improvement Area Law of 1989. Should the CdM BID be renewed, the City Council may appoint an advisory board to serve for Fiscal Year 2018-2019. RECOMMENDATIONS: a) Hold a public hearing regarding the renewal of the Corona del Mar Business Improvement District. b-1) If protests represent less than 50 percent of the total assessment amount, adopt Resolution No. 2018-46, A Resolution of the City Council of the City of Newport Beach Confirming the Levying of Assessments for the Fiscal Year of July 1, 2018 to June 30, 2019 for the Corona del Mar Business Improvement District; or b-2) If protests represent 50 percent or more of the total assessment amount, abandon the proceedings to renew the Corona del Mar Business Improvement District; 19-1 Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Corona del Mar Business Improvement District's Fiscal Year 2018-2019 June 26, 2018 Page 2 c) 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 d) Appoint the following Corona del Mar Business Improvement District members to serve as the Corona del Mar Business Improvement District's Advisory Board of Directors for Fiscal Year 2018-2019: Ernie Caponera, Newport Properties Keith Dawson, Dawson & Dawson Edward Hanley, Hanley Investment Group Hamid Kianipur, 76 Gas Station Scott LaFleur, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Jasmin Mortazavi, Mathnasium Bernie Svalstad, Upland Stor King FUNDING REQUIREMENTS: The City of Newport Beach (City), or its approved designee, collects the member assessments on behalf of the CdM BID and remits the monies back to the BID for funding the activities described in the annual report, which was originally filed with the City Council on May 22, 2018. In addition to the assessments, the City's proposed fiscal year (FY) 2018-2019 budget includes sufficient funding for providing $40,000 to continue to support the CdM BID for its marketing and public area improvements efforts. The $40,000 annual funding will be expensed to the City Manager's Office, Economic Development Division, 01020202-841046. DISCUSSION: The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 (Ordinance 97-22) pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in Streets and Highways Code Sections 36500 et seq., for the purpose of financing activities and programs to benefit businesses located and operating in the area. The CdM BID territory encompasses the area generally located along East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. 19-2 Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Corona del Mar Business Improvement District's Fiscal Year 2018-2019 June 26, 2018 Page 3 Renewal Process In accordance with the 1989 Law, a public hearing must be held each year prior to the renewal of a BID. If written protests are received from the owners of the businesses within the BID which pay 50 percent or more of the total assessment to be levied, no further proceedings to renew the 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, activity or benefit within the BID, those types of improvements, activities or benefit zones shall be eliminated. If protests represent less than 50 percent of the total assessment, the City Council may renew the BID. The CdM BID is nearing the end of its FY 2017-2018 operating period and the Advisory Board of Directors (Board) has requested renewal of the BID for FY 2018-2019. In addition to holding a public hearing prior to the BID's renewal, and pursuant to the 1989 Law, an annual report must be prepared and filed with the City Council. (The annual report is included with the June 12, 2018 staff report as Attachment A). During its June 12, 2018 regular meeting, the City Council approved the CdM BID's FY 2017-2018 Annual Report (originally filed on May 22), adopted a Resolution of Intention (Resolution No. 2018-28) to levy and collect assessments in FY 2018-2019, and set a public hearing for June 26, 2018. See Attachment A for the June 12 staff report and Resolution No. 2018-28. A public notice of the Resolution of Intention to levy and collect assessments for the renewal of the CdM BID and the time and place of the public hearing was published in the Daily Pilot newspaper on June 16, 2018. In addition, it was posted on the City's website (newportbeachca.gov/publicnotices) and, per the 1989 Law, a copy was mailed to each member of the CdM BID. As of the time this report was published by the City Clerk, no letters of opposition to the CdM BID's renewal, the levying of assessments, or to a specific improvement, activity or benefit proposed have been received. Any subsequent correspondence, with a tabulation of the protests, will be provided to the City Council at its June 26, 2018 meeting. Advisory Board Appointments The City Council has the authority to appoint an advisory board of directors to the CdM BID. The City may limit membership on the board to persons' subject to the BID assessment, or a designated representative of a member business. The board that serves the CdM BID is different and distinct from other City advisory bodies and is not appointed in the same manner. The City relies upon the Streets and Highways Code for BID advisory board appointments rather than Council Policy A-2. The CdM BID's bylaws allow for the appointment of up to nine board members. 19-3 Resolution Confirming the Levying of Assessments and Appointment of the Advisory Board of Directors for the Corona del Mar Business Improvement District's Fiscal Year 2018-2019 June 26, 2018 Page 4 The City Clerk posted a vacancy announcement for the nine available CdM BID advisory board seats (board members serve a one-year term). To be eligible to serve on the CdM BID Board, the applicant must be the member business owner or their designated representative. In addition, the business represented must be in good standing (no debt owed to the City or the CdM BID). By the May 16 deadline, nine applications were received. The CdM BID Board met on May 24 and recommended the nomination of the nine applicants for City Council appointment. The recommended nominees for the FY 2018- 2019 CdM BID Advisory Board of Directors are as follows: Ernie Caponera, Newport Properties Keith Dawson, Dawson & Dawson Edward Hanley, Hanley Investment Group Hamid Kianipur, 76 Gas Station Scott LaFleur, representing Cafe Jardin Scott Laidlaw, Laidlaw Schultz Architects Shawn Lim, Rose Bakery Cafe Jasmin Mortazavi, Mathnasium Bernie Svalstad, Upland Stor King Conclusion If a majority protest does not exist, City staff recommends the adoption of Resolution No. 2018-45, A Resolution of the City Council of the City of Newport Beach Confirming the Levying of Assessments for the Fiscal Year of July 1, 2018 to June 30, 2019 for the Corona del Mar Business Improvement District (Attachment B) and the subsequent appointment of the CdM BID Advisory Board of Directors for FY 2018-2019. 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. 10rot 0W10ra 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 — Staff Report and Resolution from June 12, 2018 Attachment B — Resolution No. 2018-46 Confirming the Levying of Assessments 19-4 CITY OF NEWPORT BEACH City Council Staff Report ATTACHMENT A June 12, 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 PHONE: 949-644-3031 TITLE: Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018- 2019 (Resolution No. 2018-28) and Approve Funding Support for Fiscal Year 2019 ABSTRACT: During its May 22, meeting, the City Council continued the item pertaining to the renewal of the Corona del Mar Business Improvement District (CdM BID) for Fiscal Year 2018- 2019 to allow the CdM BID's Advisory Board of Directors (Board) time to meet and discuss City Council member questions and comments related to potentially changing the legal structure of the BID. The Board held a special meeting on May 31 to discuss the matter and develop a response. This staff report includes a brief summary of the Board's May 31 meeting and an update to the staff recommendations presented on May 22. Staff is now requesting one year, rather than three years, of City funding support. 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 Corona del Mar Business Improvement District's Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019 Budget; c) Adopt Resolution No. 2018-28, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar 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 26, 2018; and d) Approve $40,000 in City funding support to the Corona del Mar Business Improvement District for Fiscal Year 2018-2019. 19-5 Resolution of Intention to Renew the Corona and Levy FUNDING REQUIREMENTS: ATTACHMENT A del Mar Business Improvement District Assessments in Fiscal Year 2018-2019 Page 2 Should the City Council approve the CdM BID's renewal and the request for funding support, the City's proposed FY 2018-2019 budget includes sufficient funding to continue to support the CdM 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 City of Newport Beach currently has three business improvement districts. The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 (Ordinance 97-24) pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in the Streets and Highways Code Sections 36500 etseq. In addition to the CdM BID, the Newport Beach Restaurant Association Business Improvement District was formed pursuant to the 1989 Law. California law also allows for BIDs to be formed pursuant to the Property and Business Improvement District Law of 1994 (1994 Law), codified in the Streets and Highway Code Sections 36600 et seq. The Newport Beach Tourism Business Improvement District was formed pursuant to the 1994 Law. A list of some of the differences between the two BIDs is shown in the table below. 1989 Law BID Current Structure of the CdM BID 1994 Law BID Current Structure of the NBTBID Business owner / merchant assessed Property owner or business owner assessed Council can initiate formation Stakeholders must propose formation Majority protest stops formation Majority support initiates formation Assessment levied on businesses Assessment levied on real property or businesses Renewed annually Initial term of up to five years, up to a 10 - ear renewal thereafter Higher level of day-to-day City over si ht I Greater level of autonomy Generally, BIDs formed under the 1994 Law operate more independently as the City can contract with an "owners' association" to manage the BID's operations. In addition, this type of BID has an initial term of up to five years, and can be renewed for a term of up to 10 years, providing for long-term planning and funding stability. At its May 22 meeting, Council Members briefly discussed the differences in the two types of BID and the CdM BID was encouraged to consider changing from a BID formed under the 1989 Law to one formed under the 1994 Law. The City Council then continued the item pertaining to the BID's annual renewal (Attachment A) to its next meeting to allow the CdM BID Board an opportunity to meet and consider changing the BID's legal structure. 19-6 ATTACHMENT A Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 3 The Board held a special meeting on Thursday, May 31, and discussed the differences in BIDs formed under the 1989 Law and those formed under the 1994 Law, the steps required to change the BID's legal structure, and the interest level among Board members of pursuing such a change. City staff attended the meeting to explain what the process would involve and address the Board's questions. During the discussion, Board members expressed concerns related to several aspects of changing to a different BID structure. Under state law, the Board cannot use the assessment monies collected under the current BID structure to form a new BID. (The funding could, however, be used to disestablish the current BID.) Therefore, the Board members and/or other local business owners would need to organize and fund the process on their own, while simultaneously operating their businesses. There was also concern that there would not be enough support among the businesses to establish a new BID. Ultimately, the Board unanimously voted against pursuing a change in the BID's legal structure and voted in favor of requesting the City Council's approval to renew the BID under its current structure, a 1989 Law BID, for FY 2018-2019 and for the City to provide $40,000 in funding support for FY 2018-2019 (See Attachment B for an updated letter from the CdM BID Board Chair). City staff will continue to work with the CdM BID Board to address any and all future options. Thus, City staff is recommending adoption of Resolution No. 2018-28, a Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments for the Fiscal Year 2018-2019 and Fix the Time and Place of a Public Hearing on June 26, 2018 and allocating City funding support in the amount of $40,000 for FY 2018-2019 to be expensed to the City Manager's Office, Economic Development Division, 01020202-841046. 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 — May 22, 2018 Staff Report with Attachments Attachment B — June 5, 2018 CdM BID Letter 19-7 CITY OF ?�PORr NEWPORT BEACH City Council Staff Report ATTACHMENT A May 22, 2018 Agenda Item No. 7 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 Corona del Mar Business Improvement District; Levy Assessments in Fiscal Year 2018-2019 (Resolution No. 2018-28); and Approve Funding Support Through Fiscal Year 2020-2021 ABSTRACT: The Corona del Mar Business Improvement District (CdM BID) Advisory Board of Directors (Board) has submitted the BID's annual report and budget for City Council approval. The Board also submitted a letter requesting the renewal of the CdM BID for fiscal year 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 Corona del Mar Business Improvement District's Fiscal Year 2017-2018 Annual Report and its Proposed Fiscal Year 2018-2019 Budget; c) Adopt Resolution No. 2018-28, A Resolution of the City Council of the City of Newport Beach, California, Declaring its Intention to Renew the Corona del Mar 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 Corona del Mar Business Improvement District through fiscal year 2020-2021. ATTACHMENT A Resolution of Intention to Renew the Corona del Mar 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 CdM 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 CdM BID efforts. Should the City Council approve the CdM BID's renewal and the request for ongoing funding support, the City's proposed FY 2018-2019 budget includes sufficient funding for the City's contribution of $40,000. It will be expensed to the City Manager's Office, Economic Development Division, 01020202-841046. DISCUSSION: The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 (Ordinance 97-24) 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 CdM BID was established for the purpose of financing activities and programs to benefit the businesses located and operating in the area. The CdM BID territory encompasses the area generally located along East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. (A boundary map is attached to the Resolution.) The CdM 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 CdM 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 CdM 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 CdM BID Board has continued making progress on the priorities identified in its Vision 2020 plan. Specific areas of focus include its ongoing marketing, outreach and communication efforts, regular maintenance programs, and improvement projects. Board members have been working on several projects, which are key to its continued efforts to revitalize the Business District and improve the economic growth of its member businesses. Highlights of some of the projects from FY 2017-2018 are listed below. 19-9 ATTACHMENT A Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 3 1. Parking. Parking throughout the business district has been an ongoing concern for the Board, the member businesses and the neighboring residents. The Board formed a subcommittee that includes CdM BID Board representatives as well as representatives from the Corona del Mar Residents Association. The subcommittee recommended and the Board agreed to conduct an updated parking study. A parking consultant was contracted by the City in October 2017, the contract is funded by the CdM BID. A parking count was conducted in early February 2018 and the preliminary results are under consideration for further action in FY 2018-2019. The CdM BID Board has allocated $10,000 toward this effort. 2. Flower Street Signs. The CdM BID Board completed its project to change out the street signs along East Coast Highway from the City's standard design to a custom-made decorative sign. The signs depict the flowers representing the intersecting streets along East Coast Highway. To help offset the cost of the project, the old signs were auctioned off during the annual Christmas Walk event and remaining signs were sold at the Annual Town Meeting. Approximately $1,750 was raised and deposited in the BID's budget. There are still signs available and a final attempt to sell them will be the CdM Scenic 5k event. Any remaining signs will be returned to the City for recycling. 3. Explore CdM Campaign. In partnership with the CdM Chamber of Commerce, the Explore CdM marketing campaign was launched to encourage shopping local. New street light banners were created and are installed on a year-round basis along East Coast Highway throughout the business district. The banners are switched out as needed for other community events. The brand identity created for the Explore CdM program has been used for additional marketing materials and advertising to attract shoppers and diners to the unique offerings available in the CdM Business District. The remainder of the FY 2017-2018 activities listed in the annual report include the ongoing and regular efforts of the CdM BID for the general maintenance of the East Coast Highway tree -well landscaping and street furniture (benches, trash receptacles and bicycle racks) and the marketing outreach efforts for the events and activities that occur within the CdM BID boundaries. FY 2017-2018 Operating Results and FY 2018-2019 Proposed Budget The CdM BID started FY 2017-2018 with a large fund balance due to the delay of several projects. As indicated on pages 2 to 3 of the staff report, the Board undertook many projects during the FY. The estimated year-end operating budget for the CdM BID's FY 2017-2018 is reflected in the table below. Estimated FY 2017-2018 Year -End Operating Budget Income (City Funding, Assessments and Late Fees) Fund Balance (Retained Earnings) Total Income and Fund Balance Total Expenditures Fund Balance (Retained Earnings for FY 2018-2019) 142,000 115,229 $257,229 $199,398 $57,831 19-10 ATTACHMENT A Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 4 The proposed operating budget for FY 2018-2019 is attached to the CDM BID's annual report for the City Council's approval. The Board has identified several project goals for the year and has allocated its funding accordingly, as reflected in the table below. FY 2018-2019 Operating Budget Income City Support Funding 40,000 Late Fees 2,000 Member Assessments 100,000 Total Income $142,000 Expenses Highway Decor 34,000 Website Maintenance and Support 8,344 Marketing and Administration 64,900 Streetscape and Maintenance 9,000 Landscaping 29,070 Administration (Bookkeeping) 19,072 Improvements 34,592 Outreach 1,000 Total Expenses $199,978 Net ordinary income (57,978) Other Income Expense (Retained Earnings) 57,978 Net Income $0 niTi't-- @ 1iiiX9rIkU1-3111 During last year's renewal process, Council Member Dixon requested staff review of the possibility of reforming the two remaining BIDs (CdM and the Newport Beach Restaurant Association BID) from 1989 Law BIDs to 1994 Law BIDs. 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 much of the associated costs, of operating the BIDs. The CdM Board has been working diligently to keep the district successful (and to try to overcome some of the challenges currently facing brick - and -mortar retail establishments) and staff is concerned that a significant change to the structure of the BID at this time would disrupt the BIDs efforts and potentially, the progress it's making. 19-11 ATTACHMENT A Resolution of Intention to Renew the Corona del Mar Business Improvement District and Levy Assessments in Fiscal Year 2018-2019 Page 5 This fiscal year marks the end of the previously agreed to City provided funding support. The CdM BID Board met on April 26 and recommended the Chair submit 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 2020-2021. Conclusion The CdM BID has been in existence since 1997 and its board members have a long history of working hard to enhance the business district and provide a comprehensive marketing effort to attract businesses and visitors. With the City's ongoing support and funding, the Board will be able to continue its efforts. Thus, City staff is recommending adoption of Resolution No. 2018-28, A Resolution of Intention to Renew the Corona del Mar 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. 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 — CdM BID Annual Report and Budget Attachment B — Letter from the CdM BID Board Chair Attachment C — Resolution of Intention to Renew the CdM BID 19-12 relirecd:LVA l401rrel 6D& Corona del Mar Business Improvement District ANNUAL REPORT Year -End Report for FY 2017-2018 Improvements and Activities for FY 2018-2019 This is the annual report for the 22nd year of the Corona del Mar Business Improvement District (CdM BID), as required by Section 36533 of the California Streets and Highways Code. 1. Proposed Changes to the District Boundary There are no changes proposed to the district boundaries. 2. Improvements and Activities for the Fiscal Year of July 1, 2018 to June 30, 2019. •� e e •� u':• a The following are revitalization project improvements and maintenance programs planned for the CdM BID for the fiscal year (FY) 2018-2019. These expenditures are consistent with the BID's Vision 2020 plan. 2.1 Parking & Transportation Improvements The BID Advisory Board of Directors (Board) is currently engaged in a parking study being performed by Walker Consultants. As a carry-over project from FY 2017-2018, the Board will be putting forth a concentrated effort on the studies preliminary findings and the implementation of potential solutions to improve parking within the Corona del Mar Business District and adjacent residential areas. This continued effort involves analyzing possible solutions and working with City staff, property owners and residents on the items identified in the study to potentially develop a change in the City's parking requirements, implement employee parking solutions, install parking way -finding signs, and achieve a better overall parking environment. 2.2 PCH Improvements (PCH through the CdM Business District) The BID Board will continue to enhance the appearance and safety of the Business District through various physical improvement projects and has budgeted the necessary funds for FY 2018-2019. Projects under consideration include improvements to the south entry, sidewalk treatments, intersection enhancements and an updated urban planning charrette. 2.3 Landscaping & Tree Well Maintenance The BID's FY 2018-2019 budget includes funding for the continued maintenance and necessary improvements of the tree well landscaping along PCH. The landscape maintenance is provided through a City agreement to ensure the proper care and cultivation of the 180 tree wells. The Board will continue to provide oversight of overall landscaping in the village while working closely with City staff and the contracted landscape vendor. 2.4 Streetscape & Street Furniture Maintenance The BID's FY 2018-2019 budget includes funding for the maintenance and refurbishment of the existing street furniture, which includes trash receptacles, benches, bike racks and bus stops to ensure quality aesthetics. In addition, the CdM BID FY 2017-2018 Annual Report I Page 1 19-13 relirecd:LVA l401rrel Board will work with the City to ensure the existing newspaper racks continue to be properly maintained. 2.5 North Gateway Entry Electrical Maintenance (MacArthur & PCH) The BID's FY 2018-2019 budget includes funding to maintain the BID requested electrical system in the recently improved gateway area and landscaped median to ensure the system stays in good -working. 2.6 Business District Holiday Decor Program The BID's FY 2018-2019 budget provides for the annual installation and maintenance of the median holiday decorations within the Business District. The holiday decor program is provided through a City agreement. The Board will work with the contract vendor and City staff on the annual permits, lighting and maintenance, as well as the installation and breakdown. B. VISION 2020 — MARKETING & MEMBER BENEFITS 2.7 Website & Communications In FY 2017-2018, the BID launched a new informative and interactive website with enhanced features to improve communications with and services for its members. The website includes a business directory feature to aide in marketing BID members to the public and the ability for members to pay their assessments online. Other features include the addition of news, events and meeting postings with an integrated connection to the BID's social media platforms. The Board will continue to maintain, update and keep optimization current for enhanced member marketing, communications and information sharing efforts. 2.8 Marketing & Media Campaigns During FY 2017-2018, the Board launched a "Shop Local" marketing campaign in a coordinated effort with the CdM Chamber of Commerce. This campaign involves a variety of marketing and media components to assist the Business District's retailers. The Shop Local program includes a new design theme that is strategically used throughout the marketing components such as street light banners, direct mail pieces, newspaper advertisements, events and more. The BID's FY 2018-2019 budget includes funding to continue this campaign and to provide for additional campaign components throughout the fiscal year. The Board will maintain the existing annual marketing programs and develop new strategic campaigns to promote economic growth within the business district. The Board will continue to enhance its media relations with the local press and community associations and maintain or develop new marketing collateral. 2.9 CBM BID Member Directory, Window Decals & Informational Brochures The BID's FY 2018-2019 budget includes funding to continue to co -produce and co - publish the annual Corona del Mar Business Directory (Directory) with the CdM Chamber of Commerce. The directory lists and markets CdM BID members in a colorful print publication that encourages shopping local. The directory is mailed to 10,000 households in Corona del Mar and the surrounding areas. The BID's annual Vision 2020 brochures listing the BID's recent accomplishments and future goals will be updated and distributed with the annual member assessment mailings in July and throughout the year. The Board will continue to mail members who have paid their CdM BID FY 2017-2018 Annual Report I Page 2 19-14 lelirecd:LVA l401rre1 assessments a membership decal signifying they are members in good standing. 2.10 Christmas Walk The BID will contribute funds from the FY 2018-2019 budget to the CdM Chamber of Commerce as a sponsor for the annual Christmas Walk event, which successfully stimulates the economic climate of the Business District and provides a promotional platform for all businesses within the BID boundaries and beyond. 2.11 PCH Dolphin Topiary Program The BID's FY 2018-2019 budget includes funding to coordinate the festive seasonal decorations of the dolphin topiaries at the intersection of Marguerite and PCH. This continues to be an embraced tradition by the community. 2.12 Street Light Banner Program The BID's FY 2018-2019 includes funding for the rotating street light banner program, which highlights the annual CdM signature community events (Annual Town Meeting, Scenic 5K, Christmas Walk) as well as the happy holidays banners and the shop local banners. The Board will continue to work with the contract vendor and City staff on permits, schedules and installation and removal. The street light banner program continues to provide the Business District a sense of community spirit, pride and promotion. 2.13 Marketing Consulting & Reporting The BID's FY 2018-2019 budget has funding allocated to continue the marketing consulting contract with the CdM Chamber of Commerce to formulate, coordinate and administer the BID's marketing efforts and provide routine reports to the Board on the results of the marketing activities. C. VISION 2020— OUTREACH 2.14 Annual Town Meeting The Board will continue to co -host the Annual Town Hall Meeting for Corona del Mar and coordinate a "State of the Business District Address" to its members. The meeting serves as an outreach platform and community gathering for BID members and local community members. The annual meeting is required as stated in the BID bylaws and is co -hosted with the CdM Chamber of Commerce and the CdM Residents Association. 2.15 Business Beautification Award Program The FY 2018-2019 BID budget includes funding to continue to pay for and manage the bi-monthly Business Beautification Award Program. The program identifies member businesses that have renovated, remodeled or enhanced the storefront aesthetics, which contributes to the overall Vision 2020 Plan. Recipients of the award receive media attention and an award at a community event. 2.16 Outreach Materials & Mailings The Board shall continue to communicate with the community through exhibiting at various monthly and annual events. Programs, collateral and BID announcements will be available, displayed and communicated through the CdM Chamber of Commerce, the CdM Residents Association and at other community events. CdM BID FY 2017-2018 Annual Report I Page 3 19-15 rel i recd: LVA l 4 0111 rel D. VISION 2020— ADMINISTRATION 2.17 Administrative Consulting & Reporting The BID's FY 2018-2019 budget provides funding for the administrative consulting contract between the City and the CdM Chamber of Commerce. The services include providing support to formulate, coordinate and administer the BID and report to the Board routinely on the results and issues that may arise. Activities include preparing and coordinating agendas, memos, communications and/or reports. Other duties include serving as a liaison with City staff and providing a post -meeting action item summary to the City Manager's Office. The Board continues to assume some administrative responsibility to include taking meeting minutes. 2.18 Administrative Expenses The BID's FY 2018-2019 budget includes funding for the CdM Chamber of Commerce to serve as the designated consultant to provide for a physical mailing address, telephone service, office equipment, meeting space and storage of BID collateral. 2.19 Financial Reporting, Bookkeeping & Billing Services The BID's FY 2018-2019 budget includes funding for its bookkeeping services to be provided through an agreement between the City and Community Business Solutions. Bookkeeping services consist of coordinating the member assessment billing, managing the accounts receivable and payable, preparation of the monthly financial reports and providing financial reporting to City staff and BID Board. 3. Estimated Cost of Improvements & Activities for FY 2018-2019 Improvements $ 34,592 Landscaping (Maintenance & Other) $ 29,070 Streetscape (Maintenance & Other) $ 9,000 Marketing & Administration $ 66,900 Website (Hosting, Tech Support, Maintenance & Marketing) $ 8,344 Holiday D6cor & Lite Pole Banner Program $ 34,000 Outreach $ 1,000 Administration & Financial Services $ 19,072 TOTAL $ 199,978 2020 Vision Plan Revisions The Board continues to re-evaluate and update the 2020 Vision Plan. Subcommittee meetings and workshops to develop new objectives will continue in FY 2018-2019 and the findings will be shared with BID and community members. 4. Method and Basis of Levying the Assessment The benefit assessments will be collected in one installment. The benefit assessment shall be equal to 150 percent of the City's annual business license fee as established pursuant to Chapter 5.08 of the Municipal Code. The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Chapter 5.04 of the Municipal Code, providing that the penalty amount added shall in no event exceed 50 percent of the assessment amount due. Banks and financial institutions that are exempt from City business license regulations shall be assessed $500 per year. Insurance agencies that are exempt from City business license regulations shall be assessed $250 per year. Persons operating in one CdM BID FY 2017-2018 Annual Report I Page 4 19-16 rel i recd: 1 Lli14 01 r rel of the following types of businesses, as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists; 2. Nail technicians; and 3. Real estate agents. Assessments shall be collected in one annual installment at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during the fiscal year. The Board is working to improve the delinquent member assessment collection effort. 5. Surplus Carryover from Fiscal Year 2017-2018 It is estimated that approximately $58,000 will be carried over as retained earnings from FY 2017-2018 to FY 2018-2019. 6. Sources of Contributions from Other Than Levy In addition to the annual BID assessments, the CdM BID's FY 2018-2019 budget includes $40,000 in funding from the City. The Board Chair has submitted a letter to the City Council requesting the City's ongoing funding support of $40,000 per fiscal year for three years. 7. Prior Year Accomplishments FY 2017-2018 was successful for the CdM BID. The Board successfully completed projects and programs, maintained existing programs and developed new projects within the CdM Business District as reflected in the estimated FY end expenses as shown below. Fiscal Year 2017-2018 Projects and Programs* Improvement Projects District Parking Study, Flower Street Sign Improvement Project, Gateway Electrical Improvements. Landscaping Tree -well landscaping maintenance and Irrigation repairs Holiday Decor & Street Light Banner Program Dekra-lite Contract Website Management & Communications Management, Maintenance, Hosting, technical support and Marketing. Marketing, Administration & Outreach Shop Local Marketing Campaign and components, BID brochures, website, CdM Business Directory, Dolphin Topiary Program, Beautification Program, Christmas Walk sponsorship, membership decals, annual meeting, mailings, storage and physical office facilities, Board administration, agendas, reports and communications Administration & Accounting Billing, financial reporting, Bookkeeping, mailings *Estimated fiscal -year end TOTAL 57,600 38,168 28,430 7,200 49,000 19,000 199,398 CdM BID FY 2017-2018 Annual Report I Page 5 19-17 Corona del Mar Business Improvement District Proposed Operating Budget Fiscal Year July 1, 2018 thru June 30, 2019 Ordinary Income Expense Income City Funds Late Fees Member Assessments Total Income Expense Highway Decor Website Maintenance and Support Services Marketing and Administration Services Streetsca pe/Maintenance Landscaping Administration (Bookkeeping Services) Improvements Outreach Total Expenses Net Ordinary Income Other Income Expense (Retained Earnings/Carry Over) Net Income Budget 40,000 2,000 100,000 142,000 34,000 8,344 64,900 9,000 29,070 19,072 34,592 1,000 Ip-1:1114yr (57,978) 57,978 0 rilaffd:LVA l401rWil 19-18 Q11A DPL ATTACHMENT A o¢ ;9 Corona del Mar BUSINESS IMPROVEMENT DISTRICT /City of Newport Beadr Adedsure Buo.d Bernie Svalstad Chairperson Scott Laidlaw Vice Chair Keith Dawson May 9, 2018 Dear Newport Beach City Council, RE: Request for Continued Funding Support for the CDM BID Treasurer On behalf of the Advisory Board of Directors for the Corona del Mar Business Ed Hanley Improvement District (CdM BID), I would like to thank the City Council for its Secretary su pport of the Cd M Bl D over the past 20 yea rs. Shawn Lim Director I n add ition to the rough ly$100,000 the Cd M Bl D rete ives a n n ua l ly from member assessments, the City has provided the CdM BID with an annual support of Jasmine Mortazavi Director $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 district's 2018 - Hamid Kianapur Director 2019 FY goals and priorities, the Board would like to request continued City support funding atthe same annual contribution of $40,000 annuallyfor a three - Scott Le Sc yea r pe rind begi n n ing FY 2018-2019. Ernie Caponera On Behalf of the CdM BID, we greatly appreciate the City Council's funding Director support to the CdM BID, and we look forward to continuing to enhance and revitalize the Corona del Mar Business District. CDM BID Thankyou in advance. Financial Reporting Community Business Snabtad Solutions$eptue (90 91 200 9 851 Bernie Svalstad, Chairman Corona del Mar Business Improvement District Marketine& Administration Corona del Mar Chamber of Commerce (90916734050 RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID www.cdmvillage.com Facebook/CdM BID 19-19 ATTACHMENT A RESOLUTION NO. 2018 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, DECLARING ITS INTENTION TO RENEW THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT AND LEVY ASSESSMENTS FOR THE FISCAL YEAR OF JULY 19 2018 TO JUNE 301 2019, AND FIX THE TIME AND PLACE OF A PUBLIC HEARING WHEREAS, the Corona del Mar Business Improvement District ("CdM BID") was established in 1997 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 of the City of Newport Beach ("City") for each fiscal year; WHEREAS, the advisory board, known as the CdM BID Board of Directors, has prepared an annual report for the 2017-2018 fiscal year which is on file in the City Clerk's Office ("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 CdM 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 CdM BID for the fiscal year July 1, 2018 to June 30, 2019, pursuant to the 1989 Law. Such benefit assessment shall be as follows: A. Banks and financial institutions that are exempt from City business license regulations shall be assessed Five Hundred Dollars ($500) per year. B. Insurance agencies that are exempt from City business license regulations shall be assessed Two Hundred Fifty Dollars ($250) per year. C. Persons operating one of the following types of businesses as an independent contractor in an establishment owned by another person shall be exempt from this assessment: 1. Hair stylists 2. Nail technicians 3. Real estate agents. D. The assessment for all other businesses within the CdM BID shall be one hundred fifty percent (150%) of the annual business license tax as 19-20 ATTACHMENT A Resolution No. 2018 - Page 2 of 3 established pursuant to Newport Beach Municipal Code ("NBMC") Chapter 5.08. Section 3: The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to NBMC 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 of Newport Beach, 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 CdM 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. Public area improvements and maintenance programs; C. Promotion of public events that are to take place on or in any public places in the area; D. General promotion of retail trade activities; and E. Administration. 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: The location of the CdM BID will remain the same: Generally located on East Coast Highway from Hazel Drive to Avocado Avenue, 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 CdM 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 CdM BID which pay fifty percent (50%) or more of the total assessments to be levied, no further proceedings to renew the CdM 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 19-21 U i recd: LVA l 4 L1 111 rel Resolution No. 2018 - Page 3 of 3 the furnishing of a specific type or types of improvements or activity or benefit within the CdM BID, those types of improvements or activities or benefit zones shall be eliminated. Section 9: Further information regarding the proposed CdM 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 APPROVED AS TO FORM: CI TTO lF�Y'S OFFICE S -r A on C. arp City Attorne Attachment: Boundary Map Marshall "Duffy" Duffield Mayor FROM Advisory Board Bernie Svalstad Chairperson Scott Laidlaw Vice Chair Keith Dawson Treasurer Ed Hanley Secretary Shawn Lim Director Jasmine Mortazavi Director Hamid Kianapur Director Scott Le Fleur Director Ernie Caponera Director CDM BID Financial Reporting Community Business Solutions (949)200-9851 Marketing & Administration Corona del Mar Chamber of Commerce (949)673-4050 FAaEcd:LVA l40rre1 Corona del Mar BUSINESS IMPROVEMENT DISTRICT /City of Newport Beach June 1, 2018 Dear Newport Beach City Council, RE: Request for Renewal and Funding Support for the CDM BID for FY2018/19 The CdM Advisory Board of Directors has had the opportunity to meet, along with City Staff to discuss the City Council's topic of a possible transition of the BID's structure to that pursuant to the Property and Business Improvement District Law of 1994. The CdM BID Board reviewed the Business Improvement Area Law of 1989 (1989 Law) versus the Property and Business Improvement District Law of 1994 (1994 Law) BID models, and the pros and cons to each structure. By unanimous vote, the CdM BID Board would like to request renewal of the CdM BID under the current 1989 structure for FY 2018/2019. In addition, we would like to request the continued city support of $40,000. We greatly appreciate the City Council's support and funding of the CdM BID, and we look forward to continuing to enhance and revitalize the Corona del Mar Business District. Thank you in advance. J'3e,t C6 Saabtad Bernie Svalstad, Chairman Corona del Mar Business Improvement District RECEIVE PROJECT COMMUNICATIONS FROM THE CDMBID www.CdMVillage.com FacebooklCdM BID `I-OPM ATTACHMENT B RESOLUTION NO. 2018- 46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, CONFIRMING THE LEVYING OF ASSESSMENTS FOR THE FISCAL YEAR OF JULY 11 2018 TO JUNE 30, 2019 FOR THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT WHEREAS, on June 12, 2018 the Corona del Mar Business Improvement District ("CdM BID") annual report and budget was filed and approved by the City Council; WHEREAS, on June 12, 2018 the City Council adopted a Resolution of Intention (No. 2018-28) declaring the intention to levy assessments for the CdM BID for fiscal year July 1, 2018 to June 30, 2019; WHEREAS, on June 16, 2018 the City Clerk published Resolution No. 2018-28 declaring the City Council's intention to levy assessments for the CdM BID for fiscal year July 1, 2018 to June 30, 2019; and WHEREAS, a public hearing regarding the renewal of the CdM BID was held on June 26, 2018 without a majority protest. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The City Council hereby confirms the levying of assessments as described in the Resolution of Intention, dated June 12, 2018, for the CdM BID for the fiscal year July 1, 2018 to June 30, 2019. Section 2: 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 3: 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 19-25 Resolution No. 2018 - Page 2 of 2 Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Section 5: This resolution shall take effect immediately upon its adoption by the City Council and the City Clerk shall certify the vote adopting the resolution. ADOPTED this 26th day of June, 2018. Marshall "Duffy" Duffield Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATT T OFFICE (C Aaron C. Harp City Attorney 19-26