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HomeMy WebLinkAboutRestaurant Association BID Agenda Packet 11/16/2016CITY OF NEWPORT BEACH NEWPORT BEACH RESTAURANT BUSINESS IMPROVEMENT DISTRICT AGENDA 1600 Newport Center Drive, Suite 120 Wednesday, November 16, 2016 - 9:30 AM Newport Beach Restaurant Business Improvement District Members: Ronald Schwartz, President Christopher Roman, Vice President Dan Miller, Treasurer Jordan Otterbein, Secretary John DeFrenza, Director Mario Marovic, Director Bruno Massuger, Director Matt Meddock, Director Catherine Pavlos, Director Brendon Salisbury, Director Jim Walker, Director The Newport Beach Restaurant Business Improvement District meeting is subject to the Ralph M. Brown Act. Among other things, the Brown Act requires that the Newport Beach Restaurant Business Improvement District agenda be posted at least seventy-two (72) hours in advance of each regular meeting and that the public be allowed to comment on agenda items before the Business Improvement District and items not on the agenda but are within the subject matter jurisdiction of the Newport Beach Restaurant Business Improvement District. The Chair may limit public comments to a reasonable amount of time, generally three (3) minutes per person. The City of Newport Beach’s goal is to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, we will attempt to accommodate you in every reasonable manner. Please contact Mary Locey, Management Analyst, at least forty-eight (48) hours prior to the meeting to inform us of your particular needs and to determine if accommodation is feasible at (949) 644-3031 or mlocey@newportbeachca.gov. NOTICE REGARDING PRESENTATIONS REQUIRING USE OF CITY EQUIPMENT Any presentation requiring the use of the City of Newport Beach’s equipment must be submitted to the City Manager’s Office 24 hours prior to the scheduled meeting. I.CALL MEETING TO ORDER II.ROLL CALL III.PUBLIC COMMENTS ON NON-AGENDA ITEMS Public comments are invited on agenda and non-agenda items generally considered to be within the subject matter jurisdiction of the Newport Beach Restaurant Association Business Improvement District (NBRA BID). Speakers must limit comments to three (3) minutes. Before speaking, we invite, but do not require, you to state your name for the record. The Newport Beach Restaurant Association Business Improvement District (NBRA BID) has the discretion to extend or shorten the speakers’ time limit on agenda or non-agenda items, provided the time limit adjustment is applied equally to all speakers. As a courtesy, please turn cell phones off or set them in the silent mode. IV.CURRENT BUSINESS 1.Approval of Minutes (Schwartz) Summary: Review the draft meeting minutes from the September 28, 2016 meeting. Recommended Action: Board to approve the September 28, 2016 meeting minutes. November 16, 2016 Page 2 Newport Beach Restaurant Business Improvement District Meeting Attachment-Draft September 28 Meeting Minutes 2.BID Financial Reports (Swain) Summary: a) Update on BID billing and accounting services b) Review of the BID financial reports ending October 2016 Recommended Action: Accept and file the BID financial reports for the period ending October 2016 Attachment-Financial Reports 3.President's Report (Schwartz) Summary: a) Update on BID marketing contract b) Update on stakeholder survey and strategic planning process c) Update on Hospitality Ambassador Program d) BID assessment collections and stakeholder penalties for non-payment Recommended Action: None Attachment-Draft Survey 4.Marketing Report (St. Amour) Summary: a) Update on marketing and promotions b) Update on PR and social media c) Newport Beach Restaurant Week Recommended Action: None 5.Industry Update (Peak) Summary: a) Update on EMV Chip Readers b) New laws affecting restaurants in 2017 (handout) c) Industry and community events Recommended Action: None Attachment-New Laws V.BOARD/COMMITTEE/COMMISSION ANNOUNCEMENTS OR MATTERS WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEM) VI.ADJOURNMENT Page 1 of 3 City of Newport Beach Restaurant Business Improvement District Board Meeting Minutes – September 28, 2016 Newport Beach & Company 1600 Newport Center Drive, Suite 120 Newport Beach, CA 92660 I. CALL MEETING TO ORDER The meeting was called to order at 9.33 a.m. II. ROLL CALL Directors Present: Ronald Schwartz Muldoon’s Irish Pub Christopher Roman CUCINA enoteca Dan Miller The Village Inn Jordan Otterbein A Restaurant & A Market John DeFrenza Crocker’s The Well Dressed Frank Bruno Massuger Back Bay Bistro Matt Meddock Sessions West Coast Deli Jim Walker The Bungalow Restaurant Quorum Achieved Directors Absent: Mario Marovic Dory Deli, Malarky’s Irish Pub & Stag Bar + Kitchen Catherine Pavlos Provenance Brendon Salisbury The Cannery Restaurant & El Cholo BID Administrator Present: Polly Peak Newport Beach & Company Guests Present: Keith Curry City Council Member Michelle St. Amour Newport Beach & Company Katy Dennis Newport Beach & Company Lesley Swain Newport Beach & Company III. PUBLIC COMMENTS ON AGENDA AND NON-AGENDA ITEMS • Councilman Curry provided information on the issues affecting the water supply in Newport Beach. IV. CURRENT BUSINESS 1. Approval of Minutes President Schwartz requested a motion to approve the minutes from the July 27, 2016, meeting. Page 2 of 3 Motion: Director Walker moved to approve the July 27, 2016 meeting minutes. Director Miller seconded the motion. The motion carried by the following vote: Ayes: Schwartz, Roman, Miller, Massuger, Meddock & Walker Directors Absent for the Vote: DeFrenza, Otterbein 2. BID Financial Reports • Ms. Peak provided an overview of the BID Financial reports ending August 2016 that were prepared by City staff. • Annual supplemental funds from the City of Newport for the NBRA, and for the Restaurant Week grant have been deposited into the NBRA account. • The assessment invoices are scheduled to go out on October 13, 2016. • The new NBRA informational brochure that will go out with the assessment invoices was shared with the Board. • The Board reviewed a draft of the assessment invoice and provided feedback. • Stakeholders will have the option to pay online using a credit card. • Lesley Swain provided and update on the BID accounting services and the new systems implemented for NBRA. President Schwartz requested a motion to approve the BID financial reports ending August 2016. Motion: Director Miller moved to accept and file the financial reports. Director Roman seconded the motion. The motion carried by the following vote: Ayes: Schwartz, Roman, Miller, Otterbein, DeFrenza, Massuger, Meddock & Walker 3. President’s Report • President Schwartz announced that the NBRA BID amendment was officially approved by City Council on 9/13/16. • President Schwartz announced changes in staff support roles for the NBRA. Newport Beach & Co. will continue to oversee all the marketing, PR, BID administration and accounting for the BID. Ms. Peak will be responsible for the BID Administration, and Ms. St. Amour will be responsible for the marketing and promotion for Dine Newport Beach, NBRA and its stakeholder restaurants. • President Schwartz and Ms. Peak provided an update on the strategic planning process and the NBRA stakeholder survey. o The Board reviewed a draft of the stakeholder survey, and provided feedback. o Surveys will go out in a couple of weeks, and are due back by the end of October. o Don Anderson with Destination Consultancy Group will conduct a strategic planning session with the board members immediately following the November board meeting. o The new strategic plan will be presented at the January 2017 Board meeting. • President Schwartz is looking to pursue a Hospitality Training/Ambassador Program that would be available as a resource to NBRA stakeholders. Page 3 of 3 o Ms. Dennis provided information on an existing program that Newport Beach and Co. has conducted for other City departments in the past. o President Schwartz requested to form a sub-committee of Board members to attend an upcoming Hospitality Training scheduled in November, and provide feedback on how the program can be tailored specifically for the foodservice industry and NBRA stakeholders. o Directors Walker, Otterbein, Roman and Massuger volunteered to be on the subcommittee, and will report back at the next board meeting. 4. Marketing Report • Ms. St. Amour provided the following update to the NBRA Board: o Reviewed the Dine Newport Beach newsletters and promotions, as well as the open rates for July, August and September. o Reviewed the current website and social media metrics. • Ms. St. Amour will be at the Newport Beach Wine & Food Festival to: o Promote Dine Newport Beach o Capture new email subscribers and social followers o Promote upcoming Newport Beach Restaurant Week • Newport Beach Restaurant Week (NBRW) will be January 16-29, 2017. • Registration for NBRW will be in October & November. • NBRW Media Event is scheduled for Thursday, January 12, 2017, at Marina Park. 5. Industry Update • President Schwartz opened a discussion on the issue with EMV chip readers and how it affects restaurant operators. Board members shared insights and best practices for this issue. • Ms. Peak noted upcoming industry and community events for the California Restaurant Association and Newport Beach & Co. V. BOARD/COMMITTEE/COMMISSION ANNOUNCEMENTS OR MATTERS, WHICH MEMBERS WOULD LIKE PLACED ON A FUTURE AGENDA FOR DISCUSSION, ACTION OR REPORT (NON-DISCUSSION ITEMS) • Director Walker asked to discuss the penalties for restaurants that fail to pay their assessment at the next meeting. VIII. ADJOURNMENT The meeting adjourned at 10:45 p.m. The next meeting will be Wednesday, November 16, 2016 at 9:30 a.m. at Newport Beach & Co. 96,997.27 0.00 0.00 96,997.27 96,997.27 0.00 96,997.27 Total Checks and Charges Cleared 500.00 97,498.27 Name Memo Date Doc No Cleared In Transit Balance Forward as of Beginning Balance Cut off Date: 09/30/2016 09/30/2016 AUTO ENTRY 52,661.27 10/07/2016 TEST Deposit 2CP 1.00 Debit not a credit 10/07/2016 Voided TEST Deposit 2CP -1.00 10/19/2016 NBRA Deposit Slip 10/19/1 650.00 Sushi Roku 10/19/2016 Pd through City CC portal 500.00 10/20/2016 NBRA Deposit Slip 10/20/2 1,200.00 10/21/2016 NBRA Deposit Slip 10/21/2 1,100.00 Cafe Artys II 10/21/2016 150.00 10/25/2016 NBRA Deposit Slip 10/25/2 1,600.00 10/25/2016 NBRA Deposit Slip 10/25/2 3,850.00 10/28/2016 NBRA Deposit Slip 10/28/2 1,250.00 10/31/2016 Deposit Slip 10/31/2016 1,000.00 10/31/2016 NBRA Check Deposit Slip 1 32,937.00 10/31/2016 NBRA Deposit Slip 10/31/2 600.00 97,498.27 0.00 Name Memo Date Check No Cleared Outstanding Richard J. Manning, Jr.10/18/2016 5,000.00 500.00 500.00 0.00 Total Deposits Checks and Charges Total Checks and Charges Total Deposits Cleared Deposits Outstanding Checks and Charges Adjusted Bank Balance Book Balance Adjustments* Adjusted Book Balance Newport Beach Restaurant Association Reconciliation Report As Of 10/31/2016 Account: NBRA Checking Statement Ending Balance Deposits in Transit Year To Date Actuals 10/31/2016 FY2017 NBRA Budget Remaining Amount Operating Revenue Program Revenue Restaurant Association Fees 202,600.00 189,000.00 13,600.00 Restaurant Association Late Fees 0.00 6,500.00 (6,500.00) Restaurant Association Special Events 5,300.00 25,000.00 (19,700.00) City of Newport Beach Matching Funds 40,000.00 40,000.00 0.00 City of Newport Beach Grant Funds 9,000.00 10,000.00 (1,000.00) Total Program Revenue 256,900.00 270,500.00 (13,600.00) Total Operating Revenue 256,900.00 270,500.00 (13,600.00) Expenses General and Administrative Expenses Operating Expenses Operating Expenses Bank Fees 1.00 0.00 1.00 Membership Dues 0.00 500.00 (500.00) Governance Meeting Expenses 0.00 2,000.00 (2,000.00) Total Operating Expenses 1.00 2,500.00 (2,499.00) Total Operating Expenses 1.00 2,500.00 (2,499.00) Professional Fees Independent Contractors 0.00 8,000.00 (8,000.00) Bloggers 2,750.00 12,000.00 (9,250.00) Marketing Consultant Fees 21,000.00 60,000.00 (39,000.00) BID Administration Fees 5,000.00 18,000.00 (13,000.00) Financial Services Fees 1,500.00 18,000.00 (16,500.00) Consultant Operational Reimbursement 3,986.00 12,000.00 (8,014.00) Total Professional Fees 34,236.00 128,000.00 (93,764.00) Total General and Administrative 34,237.00 130,500.00 (96,263.00) Advertising Expenses Advertising - Consumer 7,682.39 50,000.00 (42,317.61) Total Advertising Expenses 7,682.39 50,000.00 (42,317.61) Marketing Expenses Community Relations Community Partner Events 875.00 2,500.00 (1,625.00) Event Marketing Expenses 0.00 55,000.00 (55,000.00) Event Operating Expenses 21.00 5,000.00 (4,979.00) Research 0.00 4,000.00 (4,000.00) Total Community Relations 896.00 66,500.00 (65,604.00) Marketing Collateral Collateral Production Expenses 0.00 6,500.00 (6,500.00) Total Marketing Collateral 0.00 6,500.00 (6,500.00) Digital Marketing Social Media 0.00 2,000.00 (2,000.00) Website Maintenance 0.00 5,000.00 (5,000.00) Digital Advertising 0.00 7,000.00 (7,000.00) Total Digital Marketing 0.00 14,000.00 (14,000.00) Communications/Public Relations Media Relations 0.00 3,000.00 (3,000.00) Total Communications/Public Relations 0.00 3,000.00 (3,000.00) Total Marketing Expenses 896.00 90,000.00 (89,104.00) Total Expenses 42,815.39 270,500.00 (227,684.61) Net Income 214,084.61 0.00 214,084.61 Newport Beach Restaurant Association Statement of Activities Year Ending 06/30/2017 Month Ended October 2016 Current Year Balance Assets Current Assets Cash and Cash Equivalents NBRA Checking 96,997.27 NBRA City Appropriation 1,558.45 NBRA Bill.com Clearing (161.29) Undeposited Funds 397.00 Total Cash and Cash Equivalents 98,792.43 Accounts Receivable, Net Accounts Receivable Accounts Receivable 156,478.90 Allowance for Doubtful Accounts (8,195.17) Total Accounts Receivable 148,283.73 Total Accounts Receivable, Net 148,283.73 Total Current Assets 148,283.73 Total Assets 247,076.16 Liabilities and Net Assets Liabilities Short-term Liabilities Accounts Payable Accounts Payable 11,057.39 Total Accounts Payable 11,057.39 Total Short-term Liabilities 11,057.39 Total Liabilities 11,057.39 Net Assets Net Assets General Fund Balance 21,934.16 Total Net Assets 21,934.16 Net Income 214,084.61 Total Net Assets 236,018.77 Total Liabilities and Net Assets 247,076.16 Notes Accounts to be reviewed and reconciled: NBRA City Approporation Account Bill.com Clearing Account Allowance for Doubtful Accounts Newport Beach Restaurant Association Statement of Financial Position Stakeholder Survey The Newport Beach Restaurant Association Business Improvement District (NBRA BID) is committed to marketing and expanding opportunities for all its stakeholder businesses, and your advice is vital to the organization. Destination Consultancy Group (DCG) is conducting an online survey of BID stakeholders to assess their needs and issues on behalf of the NBRA, and the aggregate response information will be used in updating the strategic plan for the organization. Please complete the following questionnaire so that we can obtain your insights and opinions on the value and effectiveness of the NBRA BID. The survey will take just a few minutes to complete, and your responses will be kept strictly confidential. You can complete this survey and return it via email or Complete the Survey Online at need website link for online survey Please complete the survey by Thursday, October 27, 2016 1. Given that the NBRA BID mission is to brand Newport Beach dining and promote the commercial welfare of restaurants and the foodservice industry, please rate the importance of its priority roles on a scale that ranges from “very unimportant” to “very important.” If there are other roles that need to be recognized, please identify them and assign them a rating. Other Roles (please specify and rate) Priority Role Very Unimportant Unimportant Neither Important nor Unimportant Important Very Important Don’t Know Stakeholder & destination brand marketing awareness ¦ ¦ ¦ ¦ ¦ ¦ Stakeholder offers & event promotion ¦ ¦ ¦ ¦ ¦ ¦ Stakeholder communications ¦ ¦ ¦ ¦ ¦ ¦ Foodservice industry advocacy ¦ ¦ ¦ ¦ ¦ ¦ Culinary community leadership ¦ ¦ ¦ ¦ ¦ ¦ Event production & management ¦ ¦ ¦ ¦ ¦ ¦ Professional development programming ¦ ¦ ¦ ¦ ¦ ¦ Government/BID relations ¦ ¦ ¦ ¦ ¦ ¦ Supplier bulk purchasing ¦ ¦ ¦ ¦ ¦ ¦ __________________________________________________________________________________ 2. In your opinion, what are the two main accomplishments of the NBRA BID over the past three years? A. ___________________________________________________________________________ B. ___________________________________________________________________________ 3. What do you consider the three most valuable services that the NBRA offers to its stakeholder businesses? Please select only three services and rank in order of value. NBRA Services 1st 2nd 3rd DineNB.com – The NBRA BID official website with stakeholder offers, events & dining guides m m m Business listing on DineNB.com with detailed info, images, menus & online booking links m m m Weekly consumer Dine NB email communications promoting NBRA stakeholder businesses m m m Social media engagement & promotions m m m Food blogger coverage of stakeholder businesses m m m Digital & print advertising targeting Local diners & area visitors m m m Newport Beach Restaurant Week participation m m m Public relations campaigns & media opportunities m m m Monthly stakeholder NBRA News email communications with industry info & BID news m m m Educational seminars & professional development m m m Foodservice industry advocacy m m m Marketing collateral m m m Networking/social events with NBRA stakeholders m m m Other (please specify and rank) _________________________________________________________________________ 4. Currently, how satisfied are you as an NBRA BID stakeholder? What was the main factor that caused you to give the above satisfaction rating? ______________________________________________________________________________ ______________________________________________________________________________ 5. In your opinion, what are the top two issues or challenges that you face as a foodservice business, and that the NBRA BID could support on your behalf? A. ___________________________________________________________________________ B. ___________________________________________________________________________ 6. What key motivating factor would allow you to become more actively involved with the NBRA BID? ______________________________________________________________________________ ______________________________________________________________________________ Demographics 1. In which foodservice category below does your business best fit? ¦ Full Service Restaurant ¦ Fast Casual / Fast Food Eatery ¦ Grocery / Market ¦ Coffee House ¦ Bakery ¦ Juice Bar / Smoothie Shop ¦ Dessert Shop / Treats ¦ Catering Company Other (please specify) ____________________________________________________________ 2. Which position below best describes your role? ¦ Business Owner ¦ General Manager ¦ Restaurant / Bar Manager ¦ Marketing Manager ¦ Chef / Cook ¦ Publicist Other (please specify) ____________________________________________________________ Very Unsatisfied Unsatisfied Neither Satisfied or Unsatisfied Satisfied Very Satisfied Don’t Know ¦ ¦ ¦ ¦ ¦ ¦ 7. How many years have you been in business at the current location? _____________________________________________ 8. What is your estimated annual sales revenue? r Less than $749,999 r $750,000-$1,499,999 r $1.5 million - $2.9 million r $3 million - $4.9 million r $5 million - $9.9 million r $10 million + 9. Are you a member of the California Restaurant Association? ¦ Yes ¦ No 10. Have you attended an NBRA BID Annual Meeting? ¦ Yes ¦ No If you have any concerns and/or questions related to the topics covered in this survey that you would like to discuss further, please provide your contact information below. Contact Name: ____________________________________________________________________ Contact Email or Phone: ____________________________________________________________ Business Name: ___________________________________________________________________ Thank you for taking the time to participate in this survey. Please email the completed survey to NBRA@DineNB.com New state & local laws affecting restaurants in 2017 AS OF NOVEMBER 3, 2016 The above have been identified as some of the new laws most directly affecting restaurateurs. Not all the above may affect every restaurateur, and there may be other new laws not listed above that may affect some restaurateurs. The above are only brief summaries and do not constitute legal advice. Please consult your attorney, accountant or other appropriate professional as needed. Unless specified, all new legislation going into effect January 1, 2016. State Law /Author Subject Description AB 54 (Olsen) ADA Allows for a certified access specialist (CASp) expense to be eligible as an access expenditure for tax deduction purposes of up to $250. AB 1386 (Low) Epinephrine auto-injectors Permits entities, including restaurants, to obtain epinephrine auto-injectors for use by a trained person. Protects against civil damages for acting in good faith and not for compensation. AB 1554 (Irwin)/SB 819 (Huff) Powdered alcohol ban Prohibits manufacturing, distributing, or selling powdered alcohol. AB 1670 (Dodd) Alcohol licenses/Napa County Authorizes the Department of Alcoholic Beverage Control (ABC) to issue a maximum of five new original on-sale general licenses, over a one-year period, for bona fide public eating-places with seating for 25 or more people in the County of Napa. Additionally, the new law authorizes ABC to issue a special on- sale general license to the operator of any for-profit theater located within the County of Napa, configured with theatrical seating of at least 800 seats and primarily devoted to live theatrical performances. AB 1676 (Campos) Employee salary information Codifies EEOC regulations and court case decisions that an employer cannot rely on prior salary, by itself, to justify any disparity in compensation. AB 1732 (Ting) Single-user restrooms Requires restroom facilities with one toilet and/or urinal and one sink, with a door that the user can lock from the inside to be designated as an all gender toilet facility. AB 1875 (Quirk) Cell phones: driving restrictions Beginning in 2017, the new law prohibits drivers from holding and operating cell phones for any reason other than for functions that require only the motion of a single swipe or tap of the driver’s finger, and only if the devices are actually mounted in some type of holder on the vehicle’s windshield or on the dashboard. AB 2535 (Ridley- Thomas) Itemized wage statements An employer only needs to track the hours of non-exempt employees. AB 2899 (Hernandez) Minimum wage violations: challenges Requires that before appealing a decision by the Labor Commissioner, whether an employee filed the original claim or the Labor Commissioner issued the citation, employers must post a bond to ensure employees receive any payments owed to them. The above have been identified as some of the new laws most directly affecting restaurateurs. Not all the above may affect every restaurateur, and there may be other new laws not listed above that may affect some restaurateurs. The above are only brief summaries and do not constitute legal advice. Please consult your attorney, accountant or other appropriate professional as needed. Unless specified, all new legislation going into effect January 1, 2017. SB 3 (Leno) Minimum wage On January 1, 2017, employers with 26 or more employees will be required to pay at least $10.50 per hour. SB 32 (Pavley) Greenhouse gas emissions Requires the Air Resources Board (ARB) to ensure that statewide greenhouse gas (GHG) emissions are reduced to at least 40% below the 1990 level by 2030 and authorizes the ARB to adopt GHG emissions reductions measures by regulation. SB 1063 (Hall) Wage differentials Expands existing law (gender equity law) to also prohibit an employer from paying any of its employees at wage rates less than rates paid to employees of another race or ethnicity for substantially similar work. SB 1067 (Huff) Allergy awareness training Requires the food safety certification examination to include knowledge of major food allergens. The person in charge shall comply with both of the following: (1) Have adequate knowledge of major food allergens, foods identified as major food allergens, and the symptoms a major food allergen could cause in a sensitive individual who has an allergic reaction. (2) Educate the employees at the food facility regarding the information described above, which the person in charge may elect to accomplish by, among other methods, using a poster or job aid to which the employee can refer. SB 1067 (Huff) Food temperatures/ disclosure If a retail food facility includes on their menu animal food, such as beef, eggs, fish, lamb, milk, pork, poultry, or shellfish, that will be served or sold raw, undercooked, or without otherwise being processed to eliminate pathogens, either in ready-to-eat form or as an ingredient in another ready-to-eat food, the facility shall inform consumers of the increased risk of consuming those foods with a disclosure and reminder on the menu, menu board, a brochure, on the deli case menu, a label statement, table tent, placards, or other effective written means. The reminder is denoted by an asterisk next to a raw or under cooked animal-derived menu item, to a footnote that includes either of the following disclosure statements: (1) Written information regarding the safety of these food items is available upon request. (2) Consuming raw or undercooked meats, poultry, seafood, shellfish, or eggs may increase your risk of foodborne illness, especially if you have certain medical conditions. SB 1128 (Glazer) Employee commute benefits extension Applies to the nine counties surrounding the San Francisco bay. Currently, the Metropolitan Transportation Commission and the Bay Area Air Quality Management District have a commute benefit ordinance that requires covered employers, to offer one of the following options to their covered employees: a) a pretax option allowing covered employees to exclude from taxable wages employee transit pass, vanpool, or bicycle commuting costs; b) an employer-paid benefit whereby the covered employer offers a subsidy to offset the transit or vanpool commuting costs; or c)transportation furnished by the covered employer at no or low cost to the covered employee in a vanpool, bus, or multi-passenger vehicle operated by or for the employer. This ordinance was to be in effect until January 1, 2017; this new law puts it into effect permanently and eliminates the pre-tax subsidy for bicycle commuting and allows for it to be an employer paid benefit. SB 1167 (Mendoza) Indoor heat regulations Requires Cal-OSHA to establish a heat illness and injury prevention standard for certain employment facilities. The above have been identified as some of the new laws most directly affecting restaurateurs. Not all the above may affect every restaurateur, and there may be other new laws not listed above that may affect some restaurateurs. The above are only brief summaries and do not constitute legal advice. Please consult your attorney, accountant or other appropriate professional as needed. Unless specified, all new legislation going into effect January 1, 2017. SB 1234 (De Leon) California retirement savings plan To be administered by the California Retirement Savings Investment Board (Board). Once the Board officially opens the California Retirement Savings Plan for enrollment, employers will need to make the plan available to their employees and use their payroll system to directly deposit employee contributions into the retirement savings plan. Employers that do not offer their own retirement plans (such as a 401(k)) would have to perform the duty of allowing their workers to access their payroll system to send automatic employee contributions to the plan. Employers with 100+ employees must make the CRSP available to their employees and allow them to access their payroll system within 3 months of the Board opening the program for enrollment; employers with 50+ employees just do so within 6 months, and employers with 5+ employees must do so within 9 months. The employee default savings amount would be set at 3%. Employees that do not want to enroll and make contributions to the CRSP must act to opt- out at any time after enrollment. If employers without a workplace retirement plan do not make their payroll system available for employees to remit retirement savings contributions, the Employment Development Department (EDD) will be allowed to assess and collect a penalty. Employers will be allowed a 90-day grace period to comply without penalty once the enrollment for the program begins. It is expected that it may be up to 1-year before the Board opens enrollment. SB 1241 (Wieckowski) Employment contracts: adjudication: choice of law and forum Invalidates provisions in employment contracts requiring employees to arbitrate or litigate controversies outside California, or that designate other than California law as the choice of law to be applied. SB 1285 (Leno) Alcohol beverage licenses Allows for 5 new original special on-sale general alcohol licenses for bona fide eating establishments for premises located within specified census tracts in San Francisco. SBX2-5 (Leno) E-cigarette restrictions Recasts and broadens the definition of "tobacco product" in current law to include electronic cigarettes. Extends current restrictions and prohibitions against the use of tobacco products to electronic cigarettes. SBX2-7 (Hernandez) Tobacco products: minimum legal age Raises the legal age to purchase or consume tobacco products from 18 to 21 years of age.