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HomeMy WebLinkAbout04 - Disestablishing the Corona del Mar Business Improvement DistrictQ �EwPpRT CITY OF O � z NEWPORT BEACH <,FORN'P City Council Staff Report June 22, 2021 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, Management Analyst mfranceschini@newportbeachca.gov PHONE: 949-644-3028 TITLE: Ordinance No. 2021-14: Disestablishing the Corona del Mar Business Improvement District ABSTRACT: On March 25, 2021, the Corona del Mar Business Improvement District (CdM BID) Board of Directors recommended disestablishing the CdM BID, given that the BID has fulfilled its original mission to make Corona del Mar a desirable location to conduct business. The City Council considered the recommendation at its May 11, 2021, meeting and approved a Resolution of Intention to Disestablish the CdM BID. The City Council then held a public hearing regarding the disestablishment and introduced Ordinance No. 2021-14 on June 8, 2021. 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) Conduct second reading and adopt Ordinance No. 2021-14, An Ordinance of the City Council of the City of Newport Beach, California, Repealing Ordinance No. 97-24, Ordinance No. 98-15, and Ordinance No. 99-18, and Disestablishing the Corona del Mar Business Improvement District; and c) Approve and accept staff's recommendation on how to dispose of the CdM BID's assets. DISCUSSION: The Corona del Mar Business Improvement District (CdM BID) was formed in 1997 (Ordinance 97-24) pursuant to the Parking and Business Improvement Area Law of 1989 (1989 Law), codified in the Streets and Highways Code Sections 36500 et seq. The CdM BID was established for the purpose of financing activities and programs that benefit the member businesses located and operating in the area. The CdM BID territory encompasses the area generally located along East Coast Highway from Hazel Drive to Avocado Avenue in Corona del Mar. 4-1 Ordinance No. 2021-14: Disestablishing the Corona del Mar Business Improvement District June 22, 2021 Page 2 On May 11, 2021, the City Council adopted Resolution No. 2021-40, declaring its intention to disestablish the CdM BID. The Council then conducted a public hearing and introduced Ordinance No. 2021-14 on June 8, 2021. If approved following the second reading, Ordinance No. 2021-14 would be effective in the new fiscal year, on July 22, 2021. In accordance with California Streets and Highway Code Section 36551, upon the effective date of this ordinance, any remaining revenue derived from the levy of assessments, if any, or any revenues derived from the sale of assets acquired with the revenues, if any, shall be refunded to the owners of the businesses operating within the CdM BID that are current in their annual assessments by applying the same method and basis that was used to calculate the assessment levied this fiscal year. City staff will be managing the refund of assessments to the CdM BID stakeholders once the CdM BID is disestablished. Any BID assets must be sold or donated to a nonprofit organization prior to the CdM BID's disestablishment. The CdM BID's physical assets consist of the following: • Twenty-seven (27) 30" x 96" CdM 5K banners • Twenty-seven (27) 30" x 96" Christmas Walk banners • Twenty-seven (27) 30" x 96" Happy Holidays banners • Twenty-seven (27) 30" x 96" Explore CdM banners • Twenty-seven (27) 30' Mountain Pine garlands • 5mm Commercial Grade Warm White LED Mini -lights • 5mm Commercial Grade Cool White LED Mini -Lights • One (1) 20' Decorated Garland Branch Tree with LED Star Topper • One (1) 6.5' Illuminated Gift Box • One (1) 36" Fiberglass Present with LED Lights • Two (2) 24" Fiberglass Presents with LED Lights • Four (4) 6' Sections of In -Line Mixed Foliage Double Garland Decorated with 6' Red Shiny UV Ornaments and 36' Red Structural Outdoor Rate Bow and 5mm Commercial Grade Warm White LED Mini -Lights Two sets of 27 banners (the CdM 5K banners and the Christmas Walk banners) are to be donated to the nonprofit, Corona del Mar Chamber of Commerce. 4-2 Ordinance No. 2021-14: Disestablishing the Corona del Mar Business Improvement District June 22, 2021 Page 3 The remaining banners, the 27 Happy Holidays banners and the 27 Explore CdM banners were to be turned over to the City to be auctioned off. Any revenues derived from the sale of the assets would be added to the monetary assets of the BID, which are to be refunded to the CdM BID businesses. Staff spoke with General Auction Company, the City's contracted vendor for these services, who advised that the City should instead dispose of these banners as they would be very difficult to sell due to the existing branding and limited quantity available. The CdM BID Board, anticipating this situation, had recommended in their plan that if the banners are not able to be sold, then they are to be disposed. The City will dispose the remaining banners once the CdM BID is disestablished. The remaining holiday decor is to be donated to the nonprofit, Visit Newport Beach, Inc. FISCAL IMPACT: City staff will manage the refund of assessments to the CdM BID stakeholders and the closure of CdM BID financial accounts once the BID is formally disestablished. 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: 4-3 ATTACHMENT A ORDINANCE NO. 2021-14 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, REPEALING ORDINANCE NO. 97-24, ORDINANCE NO. 98-15 AND ORDINANCE 99-18, AND DISESTABLISHING THE CORONA DEL MAR BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Parking and Business Improvement Area Law of 1989 (California Streets and Highways Code Sections 36500 et seq.) ("Act") authorizes cities to establish parking and business improvement areas for the purpose of imposing assessments on businesses for certain activities; WHEREAS, on July 14, 1997, the City Council of the City of Newport Beach ("City Council") adopted Ordinance No. 97-24 establishing the Corona del Mar Business Improvement District ("CdM BID"); WHEREAS, on July 13, 1998, the City Council adopted Ordinance No. 98-15, which modified the basis for levying assessments in the CdM BID; WHEREAS, on August 23, 1999, the City Council adopted Ordinance No. 99-18, which modified the basis for levying assessments in the CdM BID; WHEREAS, on March 15, 2021, the CdM BID's Advisory Board voted to recommend that the City Council disestablish the BID due to the completion of its projects under its "Vision Plan" and the fulfillment of the CdM BID's original mission and submitted a proposal for the disposal of its physical assets; WHEREAS, on May 11, 2021, the City Council adopted Resolution No. 2021-40 ("Resolution") declaring its intention to disestablish the BID and set a public hearing for June 8, 2021 at 4:00 p.m., or as soon thereafter as the matter may be heard, in the City Council Chambers located at 100 Civic Center Drive, Newport Beach, California, pursuant to California Streets and Highways Code Section 36550; WHEREAS, in accordance with California Streets and Highways Code Section 36523(a), the City Clerk caused a complete copy of the Resolution to be published in a newspaper of general circulation in the City; WHEREAS, in accordance with California Streets and Highways Code Section 36523(b), the City Clerk caused a complete copy of the Resolution be mailed by first- class mail to each business owner assessed within the BID, within seven (7) days following the adoption of the Resolution; and Ordinance No. 2021-14 Page 2 of 3 WHEREAS, a public hearing was held by the City Council on June 8, 2021, in the Council Chambers located at 100 Civic Center Drive, Newport Beach, California, in person and via teleconferencing, observing restrictions due to the Declaration of a State Emergency and Proclamation of Local Emergency related to COVID-19. A notice of time, place and purpose of the public hearing was given in accordance with California Government Code Section 54950 et seq. ("Ralph M. Brown Act"). Evidence, both written and oral, was presented to, and considered by, the City Council at this public hearing. NOW, THEREFORE, the City Council of the City of Newport Beach ordains as follows: Section 1: Ordinance No. 97-24, Ordinance No. 98-15, and Ordinance No. 99- 18, are hereby repealed in their entirety. In addition, the City Council repeals all ordinances and resolutions, or portions thereof, which relate to the CdM BID. Section 2: Pursuant to California Streets and Highways Code Section 36550, the City Council hereby disestablishes the CdM BID. Section 3: In accordance with California Streets and Highways Code Section 36550(b), assets acquired with the revenues from the assessments levied within the CdM BID shall be donated in accordance with the Resolution. Section 4: In accordance with California Streets and Highways Code Section 36551, upon the effective date of this ordinance, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be refunded to the owners of the businesses then located and operating within the CdM BID by applying the same method and basis that was used to calculate the assessment levied this fiscal year or the immediate prior fiscal year if no assessment has been levied for the current fiscal year. Section 5: The recitals provided in this ordinance are true and correct and are incorporated into the operative part of this ordinance. Section 6: 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. 4-5 Ordinance No. 2021-14 Page 3 of 3 Section 7: The City Council finds the 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 8: 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 Charter Section 414. This ordinance was introduced at a regular meeting of the City Council of the City of Newport Beach held on the 8th day of June, 2021, and adopted on the 22nd day of June, 2021, by the following vote, to -wit: AYES: NAYS: ABSENT.- ATTEST: BSENT:ATTEST: LEILANI I. BROWN, CITY CLERK APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE '�4 moi-- c Gwi AARON C. HARP, CITY ATTORNEY BRAD AVERY, MAYOR