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Home My WebLink About17 - Eliminating the Balboa Village Area Benefit DistrictQ SEW Pp�T CITY OF z NEWPORT BEACH c�<,FORN'P City Council Staff Report May 25, 2021 Agenda Item No. 17 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: Scott Catlett, Finance Director/Treasurer - 949-644-3123, scatlett@newportbeachca.gov PREPARED BY: Scott Catlett, Finance Director/Treasurer, scatlett@newportbeachca.gov PHONE: 949-644-3123 TITLE: Ordinance No. 2021-12: Eliminating the Balboa Village Area Benefit District ABSTRACT: On April 27, 2021, Council Member Will O'Neill requested, and the City Council approved, for staff to prepare an ordinance eliminating the Balboa Village Area Benefit District (District) from the Area Benefit District Reserve, which is codified in Section 12.44.029 of the Newport Beach Municipal Code (NBMC). Council Member O'Neill also requested that Resolution No. 2014-101 be repealed, which provides that 100 percent of non -Tidelands funds generated from parking meters and lots within the District should be placed in the Balboa Village Area Benefit District Fund, and that all unprogrammed funds contained therein be returned to the General Fund. Pursuant to that direction, staff prepared the attached ordinance to eliminate the District. The requested resolution will be before the City Council on June 8 concurrently with the second reading of the proposed ordinance. 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; and b) Waive full reading, direct the City Clerk to read by title only, introduce Ordinance No. 2021-12, An Ordinance of the City Council of the City of Newport Beach, California, Amending Section 12.44.029 (Area Benefit District Reserve) of Chapter 12.44 (Stopping, Standing and Parking Restrictions) of Title 12 (Vehicles and Traffic) of the Newport Beach Municipal Code to Eliminate the Balboa Village Area Benefit District, and pass to second reading on June 8, 2021. DISCUSSION: With the implementation of the Balboa Village Master Plan now complete, the Balboa Village Advisory Committee (BVAC) sunset as of December 31, 2020, pursuant to Resolution No. 2018-80. Resolution No. 2018-80 had extended until that date the time period during which the BVAC recommended to the City Council expenditures of District funds. 17-1 Ordinance No. 2021-12: Eliminating the Balboa Village Area Benefit District May 25, 2021 Page 2 The District was originally created in 2014, along with a special fund in the City Treasury into which non -Tidelands parking revenues from all meters and lots within the District have been deposited. These funds currently total approximately $396,000 per year. The funding has been used for enhancements to the public right-of-way, signage, improved parking management, and other improvements consistent with the Resolution creating the District. Ordinance No. 2021-12 amends Section 12.44.029 of the NBMC to eliminate the District. There are currently no other Area Benefit Districts authorized in the City of Newport Beach; however, Section 12.44.029 leaves open the possibility of forming one in the future should this or a future City Council choose to do so. A resolution repealing Resolution No. 2014- 101, which diverted the non -Tidelands parking revenues within the District from the General Fund to the District, will be before the Council on June 8, concurrently with the second reading of Ordinance No. 2021-12. Repealing the Resolution will redirect those funds back to the General Fund on a go -forward basis. The Resolution will also direct that unprogrammed District funds on hand be returned to the General Fund. FISCAL IMPACT: Since the District was created in 2014, $2,380,000 has been collected from parking meters and the Washington Street and Palm Street parking lots. Of this amount, $1,070,000 has been spent on improvements, enhanced maintenance, and the summer trolley service for the Balboa Peninsula. These expenditures include the following items: • Balboa Village Streetscape Improvements $ 501,000 • Balboa Peninsula Summer Trolley $ 169,000 • Balboa Village Facade Program $ 143,000 • Balboa Village Wayfinding Program $ 131,000 • Balboa Village Enhanced Maintenance $ 70,000 • Balboa Blvd. Median Improvements $ 56,000 Two currently funded capital projects have additional District funding recommended for appropriation as part of the FY 2021-22 capital improvement program: • Balboa Blvd. Median Improvements $982,912 ($850,000 new) This project continues median improvements for Balboa Boulevard as described in the Concept Plan approved by the Balboa Village Advisory Committee (BVAC). The proposed improvements involve reconstruction of existing medians and planting new trees/landscaping within the raised medians, as well as updated signage. • Balboa Peninsula Summer Trolley $327,866 ($150,000 new) The Balboa Peninsula Summer Trolley is a free shuttle service travelling Newport Boulevard to Balboa Village and back. The City contracts with a private operator to provide 28 -passenger shuttles for this service. The program is primarily funded by a Measure M2 grant provided by the Orange County Transportation Authority (OCTA) for a seven-year service program through Summer 2023. The required City's match is funded from the District. 17-2 Ordinance No. 2021-12: Eliminating the Balboa Village Area Benefit District May 25, 2021 Page 3 Staff's recommendation is that these projects remain in place and be funded from District funds given that they are already included in the capital improvement program. Once each project is completed, any unused funding would be returned to the General Fund. Staff estimates that approximately $150,000 will remain unprogrammed in the Balboa Village Area Benefit District Fund at the end of the current fiscal year, which would be returned to the General Fund as a result of the requested action. If approved, on an ongoing basis beginning in FY 2021-22, approximately $396,000 of additional ongoing parking revenue per year will be deposited to the General Fund. These funds have not yet been included in the FY 2021-22 General Fund revenue budget and would be available for appropriation by the Council for other purposes should this item be approved. Absent direction from the City Council for appropriation of the funds, they will add to the year-end budget surplus for FY 2021-22 and will be available for appropriation through the ongoing budget process in subsequent fiscal years. 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 —Ordinance No. 2021-12 17-3 ATTACHMENT A Attachment A —Ordinance No. 2021-12 17-4 ORDINANCE NO. 2021-12 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING SECTION 12.44.029 (AREA BENEFIT DISTRICT RESERVE) OF CHAPTER 12.44 (STOPPING, STANDING AND PARKING RESTRICTIONS) OF TITLE 12 (VEHICLES AND TRAFFIC) OF THE NEWPORT BEACH MUNICIPAL CODE TO ELIMINATE THE BALBOA VILLAGE AREA BENEFIT DISTRICT WHEREAS, Section 200 of the Charter of the City of Newport Beach ("City") vests the City Council with the authority to make and enforce all laws, rules and regulations with respect to municipal affairs subject only to the restrictions and limitations contained in the Charter and the State Constitution, and the power to exercise, or act pursuant to any and all rights, powers, and privileges, or procedures granted or prescribed by any law of the State of California, WHEREAS, on November 25, 2014, the City Council introduced Ordinance No. 2014-21 to create the Area Benefit District Reserve and the Balboa Village Area Benefit District as set forth in Section 12.44.029 (Area Benefit District Reserve) of the Newport Beach Municipal Code ("NBMC"); WHEREAS, Section 12.44.029 of the NBMC authorizes the City Council to direct revenue into the Area Benefit District Reserve by resolution; WHEREAS, by adoption of this ordinance on June 8, 2021, the City Council desires to eliminate the Balboa Village Area Benefit District and, contemporaneously with this action, the City Council is adopting Resolution No. 2021- to eliminate the Balboa Village Area Benefit District Fund and return all unprogrammed funds to the General Fund; and WHEREAS, the elimination of the Balboa Village Area Benefit District from Section 12.44.029 will not prevent the City Council from establishing future area benefit districts by ordinance, or directing revenue into other area benefit districts. NOW THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Chapter 12.44.029 (Area Benefit District Reserve) of the NBMC is hereby amended to read as follows: 17-5 Ordinance No. 2021 - Page 2 of 3 12.44.029 Area Benefit District Reserve. A. Creation. 1. The City Council hereby creates a special capital improvement fund, to be known as the Area Benefit District Reserve. 2. The City Council may, by ordinance, establish Area Benefit Districts and may, by resolution, direct revenue into the Area Benefit District Reserve. 3. The Area Benefit District Reserve shall be used for the purposes of enhancing or supplementing services to the Area Benefit District(s) identified or the general vicinity provided there is a benefit to the Area Benefit District(s). Enhancements or supplemental services may be in the form of streetscape improvements on public or private property; other beautification projects, including, but not limited to, commercial facade improvements; transit, pedestrian, and bicycle infrastructure or wayfinding signage; the acquisition, leasing or construction of additional parking; extraordinary maintenance programs for public areas; creation or implementation of transportation mobility or parking management strategies, including, but not limited to, shared parking. Expenditures from the Area Benefit District Reserve may include all expenditures necessary or convenient to accomplish the purposes for which the funds are to be used. B. The following Area Benefit District is hereby established pursuant to the provisions of this chapter: [INTENTIONALLY LEFT BLANK] Section 2: The recitals provided in this ordinance are true and correct and are incorporated into the substantive portion of this ordinance. Section 3: If any section, subsection, sentence, clause or phrase of this ordinance 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 ordinance. The City Council hereby declares that it would have passed this ordinance 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. 17-6 Ordinance No. 2021 - Page 3 of 3 Section 4: The City Council finds the introduction and adoption of this ordinance 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 5: Except as expressly modified in this ordinance, all other sections, subsections, terms, clauses and phrases set forth in the Newport Beach Municipal Code shall remain unchanged and shall be in full force and effect. Section 6: The Mayor shall sign and the City Clerk shall attest to the passage of this ordinance. The City Clerk shall cause the ordinance, or a summary thereof, to be published pursuant to City Charter Section 414. This ordinance shall become effective thirty (30) calendar days after its adoption. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 25th day of May, 2021, and adopted on the 8th day of June, 2021, by the following vote, to -wit: AYES: NAYS: ABSENT: BRAD AVERY, MAYOR ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE o,, AARON C. HARP, CITY ATIORNEY 17-7