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HomeMy WebLinkAbout10 - Resolution of Intention to Renew the NBRBID, Levy Assessments in FY 2019-20Q �EwP0 cq<iF�P TO: FROM: CITY OF NEWPORT BEACH City Council Staff Report June 11, 2019 Agenda Item No. 10 HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Mary Locey, Administrative Analyst mlocey@newportbeachca.gov PHONE: 949-644-3031 TITLE: Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of a Public Hearing ABSTRACT: On May 28, 2019, the City Council considered staff's recommendation to renew the Newport Beach Restaurant Association Business Improvement District (NBRA BID). The City Council, after discussion and public comment, approved a motion to withhold City funding support to the BID and continued the item to provide the BID Board time to meet and revise its annual report and budget, which is attached for City Council approval. RECOMMENDATION: a) Determine this 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 this action 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 2018-19 Annual Report and its Proposed Fiscal Year 2019-20 Budget; c) Adopt Resolution No. 2019-47, 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, 2019 to June 30, 2020, and Fix the Time and Place of a Public Hearing for June 25, 2019. FUNDING REQUIREMENTS: The City of Newport Beach (City) contracts with a vendor (the NBRA BID pays for these services) 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 as described in the attached annual report. 10-1 Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of a Public Hearing June 11, 2019 Page 2 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 Highway 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 Board, which serves in an advisory capacity to the City Council, has requested renewal of the BID for FY 2019-20. Pursuant to the 1989 Law, an annual report must be prepared and filed with the City Council and a public hearing (scheduled for June 25) must be held prior to the BID's renewal. It is important to note that during the 2018 renewal process members of the City Council requested staff review the potential to reform the City's two 1989 Law BIDs (the NBRA BID and the Corona del Mar BID) under the 1994 Law. (See the separate staff report for more on the CdM BID.) For quick reference, the below table highlights a few of the major differences between the two types of BIDs. Operating as a 1994 Law BID provides autonomy from the City's oversight in BID management and operations and, since a majority membership vote is required, validation that the members perceive a benefit of belonging to the organization. 10-2 .;. BID 1994 Existing Structure Reviewed Structure F Establishment . City Council may establish on • Members submit written its own. petition to form. • Based on a majority member • Based on a majority member protest. vote. Management • Compliance with the Ralph M. • Compliance with the Ralph M. Brown Act. Brown Act. • Annual renewal by the City • Renewed every five or up to Council. 10 years by the City Council. • Compliance with all City • Compliance with the City policies and procedures. Council approved Management District Plan. Governing Body . City Council appointment of an • City Council approves a advisory board. contract with a designated nonprofit to serve as an owners association. Other . More City oversight and staff • More independence to time to operate and manage. operate and manage. Operating as a 1994 Law BID provides autonomy from the City's oversight in BID management and operations and, since a majority membership vote is required, validation that the members perceive a benefit of belonging to the organization. 10-2 Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of a Public Hearing June 11, 2019 Page 3 At its May 28 meeting, the City Council considered the NBRA BID Board's request to renew as a 1989 Law BID and receive $40,000 in annual funding support from the City. The City Council discussed the BID's request and its current formation as a 1989 Law BID. The Council reaffirmed its desire for confirmation that the BID members are receiving a benefit by re-forming as a 1994 Law BID. A motion was approved to withhold the City's $40,000 in funding support and continue the item to allow the BID Board an opportunity to revise its budget. In addition, the creation of a Council Ad Hoc Committee to review how the BID aligns with City Council priorities was recommended. (See the separate staff report for the creation of the committee.) Per direction from the City Council, the NBRA BID Board held a special meeting on May 30 to revise its FY 2018-19 Annual Report and FY 2019-20 Budget. The Board revised its budget to eliminate the anticipated funding support from the City, reducing its proposed expenditures by $49,000 ($40,000 annual funding support and $9,000 Special Event Grant support) from its meeting expenses, consumer advertising and event operating budget line items. The revised annual report and budget are included for the Council's consideration and approval (Attachment A). Fiscal Year 2018-19 Operating Results The estimated year-end operating budget for the NBRA BID's FY 2018-19 is reflected in the table on the following page. Income (City Funding, Assessments and Special Event Income) $252,000 Fund Balance (Retained Earnings) $20,000 Total Income and Fund Balance $272,000 Total Expenditures $252,000 Fund Balance (Retained Earnings for FY 2019-2020) $20,000 Proposed Budget for Fiscal Year 2019-20 The proposed operating budget for FY 2019-20 is attached to the NBRA BID's annual report for the City Council's approval. A summary is reflected in the table on the following page. Proposed FY 2019-20 Operating Bud Income Special Event Income Member Assessment $33,000 $170,000 Carry Over Retained Earnings) $20,000 Total Income $223,000 Expenses Operational Expenses $9,250 Event Expenses $24,000 Administration(Board/Admin/Bookkeeping Services $36,500 Vendor/Contractor Services $110,000 Outreach $43,250 Total Expenses $223,000 10-3 Resolution No. 2019-47: Resolution of Intention to Renew the Newport Beach Restaurant Association Business Improvement District, Levy Assessments in FY 2019-20, and Fix the Time and Place of a Public Hearing June 11, 2019 Page 4 Resolution of Intention The Resolution of Intention (Attachment B) for the NBRA BID provides for the following: The intention to renew the NBRA BID assessments for fiscal year 2019-20. The assessment levies shall be: o $600 for full -serve restaurants o $500 for fast -casual restaurants o $500 for grocery or markets o $150 for coffee, tea or specialty shops, dessert, bakery or treat shops, juice bar or smoothie shop, and catering companies. The improvements and activities to be funded shall be: o Marketing, advertising, and public relations; o Brochure development and distribution; o Promotion of public events; o General promotion of restaurant trade activities; o Educational and training classes for members; and o Membership in various organizations. The public hearing shall be heard on June 25, 2019 at 7 p.m. in the City Council Chambers. Per the 1989 Law, the City Council may revise, change, reduce or modify the assessment or the type or types of improvements and activities proposed to be funded by the NBRA BID Board. 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 Revised Annual Report and Budget Attachment B — Resolution No. 2019-47 10-4 ATTACHMENT A N � W PO RT BwACH RESTAURANT ASSOCIATION41,:0FLH,r� Newport Beach Restaurant Business Improvement District Fiscal Year 2018-2019 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, 2019 to June 30, 2020 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 through video content • Targeted and measurable annual marketing strategy Communication I Education • Engaging stakeholder 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 2021 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 Objectives 1. Promote Newport Beach stakeholders and showcase the local culinary community to increase diner frequency and generate stakeholder sales. NBRA BID 2019 Annual Report I Page 1 of 9 10-5 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) 2019-2020 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 be provided by staff and 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. 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. NBRA BID 2019 Annual Report I Page 2 of 9 10-6 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 the annual Newport Beach Restaurant Week, which promotes the participating local restaurants and 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. Vidpn CnntPnt Messaging and content about Newport Beach dining will be produced in partnership with Newport Beach TV as well as Visit Newport Beach lifestyle digital channel. 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 as well as paid media. 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. 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. NBRA BID 2019 Annual Report I Page 3 of 9 10-7 Professional Relationshi 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, bank fees and other administrative expenses. 3. The Cost of These Activities is Projected as Follows: cam �� Office Supplies Postage Bank/Merchant Fees Membership Dues Governance Meeting Expenses Independent Contractors • I $950 $850 I $2,500 I $300 I $500 I $30,000 Bloggers $8,000 Marketing Consultant Fees $60,000 BID Administration Fees $18,000 BID Accounting Services Fees $18,000 Operational Expenses & Insurance (vendor services) $12,000 Advertising — Consumer $35,000 Community Partner Events $3,000 Event Marketing Expenses $20,000 Event Operating Expenses $1,000 Research $5,500 Collateral Production Expenses $2,000 Social Media $1,400 Website Maintenance Media Relations Total Expenses $1,000 $3,000 $223,000.00 4. The Method and Basis of Levying the Assessment Shall be as Follows: The benefit assessments will be collected by the City or its designee in one installment at the beginning of the fiscal year, and shall be pro -rated for new businesses that open during NBRA BID 2019 Annual Report I Page 4 of 9 I 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 Juice Bar or Smoothie Shop Caterinq Company $150 $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. Surplus Revenue to be Carried Over It is estimated that $20,000 will be carried over from the NBRA BID's FY 2018-2019 budget into the FY 2019-2020 budget. 6. Sources of Contributions Other Than Levied Assessments In addition to the anticipated income from the levied assessments and late fees, the NBRA BID's FY 2019-2020 budget estimates receiving $33,000 in special event fees. Stakeholder Assessments Carry Over Funds 2018-2019 Special Event Fees & Income Total O 7. Accomplishments in Fiscal Year 2018-2019 JL $170,000 $20,000 $33,000 ng Income $223,000.00 FY 2018-2019 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, restaurant industry news and NBRA BID information. New video content series was created for social and the web: o Weekly Bites NBRA BID 2019 Annual Report I Page 5 of 9 10-9 o Season 2 Culinary Journeys • 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 2018 Summer Campaign — 52 Weeks of Dining 0 2019 Restaurant Week Campaign — Culinary Journeys 0 2019 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 22 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 100 paid guests and 24 VIP guests enjoying bites from eight NBRA restaurants • Through consistent and strategic social media outreach on Facebook, Twitter and Instagram, the NBRA BID experienced tremendous growth in the social channels, as well as increased online engagement with consumers and stakeholders. • 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. NBRA BID 2019 Annual Report I Page 6 of 9 10-10 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 Christmas Boat Parade o Pacific Food & Wine Classic • The NBRA BID produced the 2019 Newport Beach Restaurant Week with 69 participating restaurants. The event celebrated the 13' anniversary of Restaurant Week marking "Culinary Journey." The marketing and promotional efforts included: o Advertising — Print ads appeared in LOCALE OC, Newport Beach Magazine, The Daily Pilot, The Coastline Pilot and Newport Beach Lifestyle. Digital ads appeared online through the Google Ad Network, Facebook, Instagram, Visit California, TripAdvisor, Los Angeles Times Digital Media, OC Greer, VisitNewportBeach.com, DineNB.com, YelpOC and OpenTable. Paid and in-kind advertising generated over 3.3 million impressions. o PR Campaign — Editorial content, blogger coverage, calendar listings and a reception to promote the event generated 28 articles, 11 social media posts and over 1,876,000 social media impressions in media outlets in Orange County, Los Angeles, Long Beach, Inland Empire, Palm Springs and San Diego. The campaign resulted in generating over 9.6 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 municipal statements in December and January. Outdoor promotional signage and banners appeared throughout Newport Beach. o Email Blasts — Email communications went out through Dine Newport Beach, Visit Newport Beach, OpenTable, YELP, Lido Marina Village and The Irvine Company email database reaching over two -million consumers throughout the Los Angeles and Orange County regions. o Results — OpenTable reported 89 percent of NBRW consumers would recommend to a friend; and restaurants reported sales growth of 14.7 percent during Restaurant Week. There were over 15.6 million advertising and media impressions generated for the event. The overall event resulted in an estimated consumer spend of $3.7 million, which is an increase of 26 -percent year over year. • 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. • Through the partnership with Newport Beach & Company, the NBRA BID continued providing a toll-free phone number and live concierge assistance to diners seeking NBRA BID 2019 Annual Report I Page 7 of 9 10-11 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. • The NBRA BID contracts through the City with Newport Beach & Company to handle all marketing, public relations, communications, website management, BID administrative services, and bookkeeping services. • The NBRA BID continued to offer online credit card processing services for members to pay their assessment and event participation fees. • The NBRA BID 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 at Muldoon's Irish Pub in March (per the NBRA BID Bylaws), where it provided a review of the BID's financial standing: reviewed marketing and promotion results: discussed goals and objectives and programs for the upcoming fiscal year, and obtained feedback from the general membership. Fiscal Year (FY) ODeratina Results During FY 2018-2019, the NBRA BID collected approximately $170,000 in stakeholder assessments and approximately $19,950 in stakeholder assessment late fees. The City contributed $40,000 to support the BID. The NBRA BID received $33,240 in participation fees for 2019 Newport Beach Restaurant Week, and a grant of $9,000 from the City in support of Newport Beach Restaurant Week. The total income for FY 2018-2019 is expected to be approximately $272,190. By the end of FY 2018-2019, the NBRA BID will spend approximately $252,190 for the approved activities, funded by the FY 2018-2019 revenue. 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 2019 Annual Report I Page 8 of 9 10-12 NEWPORT BwACH RESTAURANT ASSOCIATION Newport Beach Restaurant Business Improvement District Operating Budget July 1, 2019 — June 30, 2020 �r�EW�Rr v y.a x c9crFOwN•r EXPENSES TOTAL Stakeholder Assessments $170,000 Carry Over funds from 2018-2019 $20,000 Special Event Fees & Income $33,000 Total Income $223,000 EXPENSES TOTAL Office Supplies $950 Postage $850 Bank/Merchant Fees I $2,500 Membership Dues $300 Governance Meeting Expenses I $500 Independent Contractors $30,000 Bloggers I $8,000 Marketing Consultant Fees $60,000 BID Administration Fees $18,000 BID Accounting Services Fees $18,000 Operational Expenses & Insurance (vendor services) $12,000 Advertising — Consumer $35,000 Community Partner Events $3,000 Event Marketing Expenses $20,000 Event Operating Expenses $1,000 Research $5,500 Collateral Production Expenses $2,000 Social Media $1,400 Website Maintenance $1,000 Media Relations $3,000 Total Expenses $223,000.00 NBRA BID 2019 Annual Report I Page 9 of 9 10-13 ATTACHMENT B RESOLUTION NO. 2019-47 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, 2019 TO JUNE 30, 2020, 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 by Ordinance No. 95-55, 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 NBRA BID Board of Directors, has prepared an Annual Report for the 2018-2019 fiscal year which is on file in the Office of the City Clerk ("Annual Report"); and WHEREAS, on June 11, 2019, 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, 2019 to June 30, 2020, 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, 2019 to June 30, 2020, pursuant to the 1989 Law. Such benefit assessment shall be as follows: Stakeholder Category Assessment Levy' Full -serve restaurant (e.g., with wait staff) $600 Fast -casual restaurant (e.g., place order at counter) $500 Grocery or market $500 Coffee, tea or specialty shop $150 Dessert, bakery or treats $150 Juice bar or smoothie shop $150 Catering company $150 10-14 Resolution No. 2019-47 Page 2 of 4 Businesses Exempt from the NBRA BID Certified Farmer's Markets, mini -marts, yachts and charters, banquet facilities, private membership clubs, theaters and gas stations. Section 3: The penalty for delinquent payments shall be equal to that established for delinquent business license fees pursuant to Newport Beach Municipal 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 or tea 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 as Exhibit A, and incorporated herein by reference. Section 7: The time and place for a public hearing on the NBRA BID renewal is set for 7:00 p.m. or as soon thereafter as the matter may be heard on June 25, 2019, at the Council Chambers located at 100 Civic Center Drive, Newport Beach, CA 92660. 10-15 Resolution No. 2019-47 Page 3 of 4 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. 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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. 10-16 Resolution No. 2019-47 Page 4 of 4 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 11th day of June, 2019. ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE C Aaron C. Harp City Attorney Attachment(s): Exhibit A - Boundary Map Diane B. Dixon Mayor 10-17 10-18 Costa M esa / " - Newport - Beach Newport Coast i Corona Del Mai \� 1 �� r1 H S r�°';�rNewport Beach Restaurant Association �I Business Improvement District 95r19R012 RapeWsnSBfQ Amxd 10-18