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Home My WebLink About04 - Amending the Expiration Date of the Ad Hoc Committee for Local Business AdvancementPORT CITY OF � SEW z NEWPORT BEACH <-FoaN'P City Council Staff Report November 19, 2019 Agenda Item No. 4 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Grace K. Leung, City Manager - 949-644-3001, gleung@newportbeachca.gov PREPARED BY: Melanie Franceschini, Administrative Analyst, mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Resolution No. 2019-99: Amending the Expiration Date of the Ad Hoc Committee for Local Business Advancement ABSTRACT: The Ad Hoc Committee on Local Business Advancement (Committee), was created by Resolution No. 2019-53 and renamed and amended by Resolution No. 2019-71. It is set to expire upon making recommendation(s) to the entire City Council or on December 31, 2019, whichever occurs first. The Committee desires additional time to complete its work. If adopted, Resolution No. 2019-99 would extend the timeline for the Committee's existence and expire upon making recommendation (s) to the entire City Council or on June 30, 2020, whichever occurs first. RECOMMENDATIONS: 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; and b) Adopt Resolution No. 2019-99, A Resolution of the City Council of the City of Newport Beach, California, Amending the Expiration Date of the Ad Hoc Committee on Local Business Advancement. FUNDING REQUIREMENTS: There is no fiscal impact related to this item. DISCUSSION: Mayor Diane Dixon, Council Member Joy Brenner and Council Member Jeff Herdman were appointed to the Ad Hoc Committee on Business Improvement Districts (Committee) on July 11, 2019, per City Council's adoption of Resolution No. 2019-53. The Committee was formed with the purpose of reviewing the City's two business improvement districts (BIDs), which were formed pursuant to the Parking and Business Improvement Area Law of 1989, California Streets and Highways Code, Section 36500 et seq., (1989 Law). Those BIDs include the Corona del Mar BID and the Newport Beach Restaurant Association BID. 4-1 Resolution No. 2019-4: Amending the Expiration Date of the Ad Hoc Committee on Local Business Advancement November 19, 2019 Page 2 The committee members met with City staff to begin discussions on these BIDs including the City's funding support for each and whether the BIDs are aligned with City Council priorities. On June 25, 2019, City staff presented funding requests from the Balboa Village Merchant Association, Inc. (BVMA) and Balboa Island Marketing, Inc. (BIMI) to the City Council. At that time, the City Council expressed interest in further discussing the City's support of the merchant associations. Subsequently at the July 23, 2019 Council meeting, Resolution No. 2019-71 was adopted, extending the scope of the Committee and renaming the Committee to the Ad Hoc Committee on Local Business Advancement. The Committee continues to meet with various stakeholders to gather information toward making informed recommendations to the City Council. Further, the City Manager requested audits of the City funding that supports the two, 1989 Law Business Improvement Districts and the two merchant associations to provide the Committee with additional information as to how City funding support has been spent in prior years. The Committee needs additional time to continue meeting with stakeholders and to review the results of the audits, which are not yet completed. As created, the Ad Hoc Committee on Local Business Advancement is set to expire upon making recommendation(s) to the entire City Council or on December 31, 2019, whichever occurs first. The Committee would like to continue to be an advisory committee and have its existence extended to expire upon making recommendation (s) to the entire City Council or on June 30, 2020, whichever occurs first. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. NOTICING: The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENT: Attachment A — Resolution No. 2019-99 4-2 ATTACHMENT A RESOLUTION NO. 2019-99 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING THE EXPIRATION DATE OF THE AD HOC COMMITTEE FOR LOCAL BUSINESS ADVANCEMENT WHEREAS, A Business Improvement District is a program of a city under which a city may levy an assessment against businesses or properties to fund services or improvements that benefit such assessed businesses or properties; WHEREAS, the City of Newport Beach ("City") established the Newport Beach Restaurant Association Business Improvement District ("NBRA BID") in 1995 by Ordinance No. 95-55, pursuant to the Parking and Business Improvement Area Law of 1989, California States and Highways Codes, Section 36500 et seq., ("1989 Law"); WHEREAS, the City established the Corona del Mar Business Improvement District "CdM BID") in 1997 by Ordinance No. 97-24, also pursuant to the 1997 Law, WHEREAS, at a City Council meeting on May 28, 2019, the City Council was presented with a recommendation from staff to renew the levy assessments for both the NBRA BID and CdM BID (collectively referred to herein as "BIDS") for the fiscal year of July 1, 2019 to June 30, 2020, and to approve a commitment of $40,000.00 in City funding support for each of the BIDS; however, the City Council continued the items to the June 11, 2019 City Council meeting to deliberate further; WHEREAS, at a City Council meeting on June 11, 2019, the City Council created an Ad Hoc Committee on Business Improvement Districts ("BID Committee"), comprised of three (3) Council Members, to review and determine whether the BIDS are aligned with the City Council's priorities, including the City's funding support of same, and to make a recommendation to the entire City Council in regards thereto; WHEREAS, following the adoption of Resolution No. 2019-53, which established the newly formed BID Committee, City staff received funding requests from two merchant associations, the Balboa Village Merchant Association, Inc. and the Balboa Island Marketing, Inc., which were presented at a City Council Meeting on June 25, 2019, where the City Council reduced its funding support for such merchant associations; WHEREAS, at a City Council meeting on July 23, 2019, the City Council adopted Resolution No. 2019-71, which amended the scope of the BID Committee and amended the name of the Committee to the Ad Hoc Committee on Local Business Advancement ("Committee") to reflect the revised purpose and responsibilities; 4-3 Resolution No. 2019 - Page 2 of 3 WHEREAS, as created, the Committee is set to expire upon making recommendation (s) to the entire City Council or December 31, 2019, whichever occurs first; WHEREAS, following the adoption of Resolution 2019-71, the Committee has been meeting with various stakeholders to make an informed decision and the City Manager has requested an audit of City funding support to the Business Improvement Districts and merchant associations; and WHEREAS, the Committee needs additional time to continue meeting with stakeholders and to review the results of the audit that is currently underway, in order to return to the entire City Council with a recommendation. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows: Section 1: The Ad Hoc Committee on Local Business Advancement ("Committee") created by Resolution 2019-53 and amended by Resolution 2019-71, shall continue to be an advisory committee and its existence shall be extended to expire upon making recommendation (s) to the entire City Council or June 30, 2020, whichever occurs first. All Council Members previously appointed to the Committee shall remain members of the Committee and the purpose and responsibilities of the Committee shall remain the same as set forth in Resolution 2019-71. Section 2: The Committee shall not be subject to the Brown Act; however, the recommendations) of the Committee shall be considered at a noticed and public meeting by the entire City Council. Section 3: 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 4: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution. Resolution No. 2019 - Page 3 of 3 Section 5: 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. Section 6: 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 19th day of November, 2019. Diane B. Dixon Mayor ATTEST: Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY TTORNEY'S OFFICE ,,, C, Aaro C. Harp City Attorney 4-5