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Home My WebLink About13 - Approval of COVID-19 Economic Relief Funding Support for the BIMAQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report July 14, 2020 Agenda Item No. 13 It• :[.]R•]:7_1:11aLVA M tel:9_1►191Ul21f•1:121:we]a I:IWO] IWK•1.111,Is] II 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: Approval of COVID-19 Economic Relief Funding Support for the Balboa Island Merchants Association ABSTRACT: At its May 26, 2020 meeting, the City Council expressed general support for including a one-time allocation of $20,000 in the City's Fiscal Year 2020-21 General Fund budget for COVID-19 economic relief funding for the Balboa Island Merchants Association (BIMA). The funding would be not be allocated however, until the Council received and approved a report from BIMA that outlines the efforts it has undertaken and completed in the past year, a plan and budget outline for how it would use COVID-19 economic relief funding, and certain financial statements. BIMA has submitted its report for the Council's consideration. 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 Balboa Island Merchants Association (BIMA) Fiscal Year 2020-21 Proposed Projects and Budget, Profit and Loss Statement for FY 2019-20 and balance sheet of current assets; c) Direct the City Manager on the allocation of $20,000 in COVID-19 Economic Relief Funding Support to BIMA in Fiscal Year 2020-21; and d) Authorize the City Manager to execute a grant agreement with BIMA for Fiscal Year 2020-21 accordingly. 13-1 Approval of COVID-19 Economic Relief Funding Support for the Balboa Island Merchants Association, Inc. July 14, 2020 Page 2 FUNDING REQUIREMENTS: The City's approved FY 2020-21 budget includes sufficient funding to allocate $20,000 to BIMA in COVID-19 economic relief funding. It will be expensed to the City Manager's Office, Economic Development Division, Community Support Expense Account 01020202-821015. DISCUSSION: About BIMA Balboa Island Merchants Association (BIMA) is a newer organization on Balboa Island, formed in September of 2019, in an effort to further promote local Balboa Island businesses. It has 41 members, with the collective goals of expanding merchant involvement, collaborating on web -based marketing efforts, coming up with effective promotions, and finding new funding opportunities. COVID-19 Relief Funding Proposal for FY 2020-21 At the May 26, 2020 City Council meeting, the Ad Hoc Committee on Local Business Advancement (Committee) presented its recommendations to the City Council. One of the Committee's short-term recommendations was to provide City financial support in the amount of $20,000 to each of the Balboa Island merchant associations, Balboa Island Merchants Association, Inc. and BIMA, specifically for marketing and to help their member businesses reopen and recover from the financial impact of the COVID-19 pandemic during FY 2020-21. The City Council took a straw vote and the majority was in support of including the funding in the City's Fiscal Year 2020-21 General Fund budget. However, the Council agreed that funds should not be allocated until each association submits a report for the Council's review and approval that outlines the efforts they have undertaken and completed in the past year, a plan and budget outline for how it would use the City funding, a profit and loss statement for FY 2019-20, and a balance sheet of current assets. Balboa Island Merchants Association, Inc submitted its report on June 19 and the City Council reviewed the plan and budget on June 23, 2020. At that meeting, Council did not approve the allocation to Balboa Island Merchant Association, Inc. BIMA has now submitted its report (Attachment A) for City Council consideration. As explained in the attached report, BIMA would use the funding toward marketing and promotions, utilizing technology for effective communications, presenting Balboa Island as a safe and rewarding experience for all, and more. BIMA's proposed expenditures are detailed in the following table. 13-2 Approval of COVID-19 Economic Relief Funding Support for the Balboa Island Merchants Association, Inc. July 14, 2020 Page 3 Proposed Expenditure Web Development $4,000 Outreach Programs $5,000 Promotional Costs $3,000 Cost of Planned Events $4,000 Printing, Miscellaneous, etc. $1,100 Christmas Beautification Theme & Handout $1,500 Total Expenditures $18,600 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 — Balboa Island Merchant Association Submitted Materials 13-3 To: City Council Members Newport Beach ATTACHMENT A June 17, 2020 We are pleased to participate in the Local Business Advancement initiative as recommended by the Council Ad Hoc Committee. The Balboa Island Merchants Association "BIMA" was organized to promote local Balboa Island businesses. Specifically, we pride ourselves on the level of transparency and collaboration among the merchants on the Island. When we received the memo notifying us of the proposed funding we canvassed our members (copy attached). Included in much of the input was: Expand merchant's involvement and ensuring support Collaborate on uniform marketing practices, utilization of technology for an effective communications within the district as well as outreach to hotels and resorts Evaluating of new funding opportunities including fund rising. Effective promotions that would attract visitors, local residents and nearby communities. Present Balboa Island as a safe and rewarding experience for all The Balboa Island Merchants Association was established September, 2019. At the present time we have 41 members. Our expenses for 2019 included: Filing with State of California Legal fees for trademark Logo and web design and printing costs Balboa Island Merchants Association "BIMA" 210 Marine Avenue, Unit A, Balboa Island, CA 92662 Ph: 949-566-9380 - Fx: 949-566-9381 www.baIboaislandmerchantsassociation.com 13-4 June 17, 2020 Projected Expenses for 2020: Web development .................................. $4,000.00 Outreach Programs ................................... $5,000.00 Promotional Costs ..................................... $3,000.00 Cost of planned events ............................. $4000.00 Printing, miscellaneous, etc...................$1,100.00 Christmas beautification theme & Handouts .................................................... $1,500.00 The Balboa Island Merchants Association "BIMA" is committed to creating a rewarding experience and livelihood for all merchants on Balboa Island. It remains difficult however; to announce specific plans when there has been a newly created organization closely imitating the name "BIMA". We will continue to provide transparency, communication and participation for all those who share this common goal. Sincerely, Matthew Pour Balboa Island Merchant's Association Founder -CEO "BIMA" 210 Marine Ave, Unit A Newport Beach, CA 92662 P: 949-566-9380 I F: 949-566-9381 Email: Matthew@balboaislandmerchantsassociation.com www.balboaislandmerchantsassociation.com Balboa Island Merchants Association "BIMA" 210 Marine Avenue, Unit A, Balboa Island, CA 92662 Ph: 949-566-9380 - Fx: 949-566-9381 www.baIboaislandmerchantsassociation.com 13-5 Hello Everyone, June 10, 2020 The City Council is interested in funding the merchant organizations in Newport Beach. The Balboa Island Merchants Association "BIMA" has the opportunity to receive $20,000.00. The funds are "to be used specifically to help businesses recover from the impact the Corona - 19 pandemic has had on their operations." They are also requesting a budget outline for marketing and facilitating our reopening and recovery. Your suggestions on what would be helpful to you and all of the businesses on the Island will support a coordinated consensus in itemizing expenses. Our deadline to submit our request for funding is June 17, 2020. Please know how much your input is valued and appreciated. You can send your suggestions to my e-mail: Matthew@baIboaislandmerchantsassociation.com- drops it off at: 210 Marine Ave, Unit A. and for those who would like to discuss any and all options: a meeting is planned for: June 16, 2020 from 8.30-9.30 A.M. at 210 Marine Ave, Unit A. Thank you very much for your support and together we can build a strong rewarding business environment. Sincerely, Matthew Pour Balboa Island Merchant's Association Founder -CEO "BIMA" 210 Marine Ave, Unit A Newport Beach, CA 92662 P: 949-566-9380 I F: 949-566-9381 Email: Matthew(a)balboaislandmerchantsassociation.com www.balboaislandmerchantsassociation.com 13-6 12:30 PM 06/15/20 Cash Basis Balboa Island Merchant Association Profit & Loss July 2019 through June 2020 Ordinary Income/Expense Income Donation Income Program Income Membership Dues Total Program Income Total Income Expense Advertising Contract Services Legal Fees Total Contract Services Licences and Permits Total Expense Net Ordinary Income Net Income Jul '19 -Jun 20 5,000.00 900.00 900.00 5,900.00 2,700.00 1,500.00 1,500.00 100.00 4,300.00 1,600.00 1,600.00 Page 1 13-7 12:33 PM Balboa Island Merchant Association 06/15/20 Balance Sheet Cash Basis As of June 15, 2020 Page 1 13-8 Jun 15, 20 ASSETS Current Assets Checking/Savings Cash on Hand 1,600.00 Total Checking/Savings 1,600.00 Total Current Assets 1,600.00 TOTAL ASSETS 1,600.00 LIABILITIES & EQUITY Equity Unrestricted Net Assets 1,100.00 Net Income 500.00 Total Equity 1,600.00 TOTAL LIABILITIES & EQUITY 1,600.00 Page 1 13-8