HomeMy WebLinkAbout98-4 - Modifying the Basis for Levying Assessments in the Balboa Village Business Improvement DistrictORDINANCE NO. 98 -4
• AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF NEWPORT BEACH MODIFYING THE BASIS FOR
LEVYING ASSESSMENTS IN THE BALBOA VILLAGE
BUSINESS IMPROVEMENT DISTRICT
WHEREAS, on April 1, 1995 the Balboa Village Business Improvement District was
established, which provided for the imposition of a benefit assessment upon businesses within
the District; and
WHEREAS, upon recommendation of the Advisory Board the City Council desires to
modify the basis for levying assessments in the District.
NOW, THEREFORE, the City Council of the City of Newport Beach does ordain as
follows:
• SECTION 1. Intent and Purpose. On February 27, 1995 the City Council of the City of
Newport Beach adopted Ordinance No. 95 -04 establishing the Balboa Village Business
Improvement District, then known as the Central Balboa Business Improvement District. On
February 23, 1998, the City Council adopted Resolution No. 98 -16 declaring its intention to levy
a benefit assessment on businesses within the District, the proceeds of which shall be used for the
public purposes therein described, pursuant to the Parking and Business Improvement Area Law
of 1989, Part 6 (commencing. with Section 36500) of Division 18 of the California Streets and
Highways Code (the "Act "). On February 23, 1998, the City Council held a public meeting in the
City of Newport Beach Council Chambers which was duly noticed pursuant to the Act, and
introduced this Ordinance.
On March 23, 1998 the City Council held a public hearing in the City of Newport Beach
• Council Chambers to receive protests from any persons and affected business owners. The City
Council has heard and considered all oral and written protests or other comments regarding such
proposed action, and protests from businesses in the proposed area paying a majority of the
• proposed assessment have not been received; and, the City Council finds, based on all evidence
presented that the businesses within the District will be benefited by the expenditure of the funds
raised by the assessments proposed to be levied.
At the February 23, 1998 public meeting the Advisory Board submitted recommendations
to the City Council that the basis for levying the assessment be modified as described in Section
4 below.
SECTION 2. District Area Boundaries. The District boundaries shall remain unchanged
from that established in Ordinance 95 -4.
SECTION 3. Boundary Modification. The City Council may modify the boundaries or
assessments established by this Ordinance; the modifications shall be made pursuant to the
• requirements of the Act, but no assessment shall be modified which would impair the ability of
the District to meet the obligation of a contract to be paid from the revenues derived from the
levy of assessments.
SECTION 4. Benefit Assessment. The City Council hereby levies and imposes and
orders the collection of a benefit assessment upon persons conducting business in the District.
Such benefit assessment shall be as follows:
A. Banks and financial institutions that are exempt from City business license
regulations shall be assessed $500 per year.
B. Insurance agencies that are exempt from City business license regulations shall
be assessed $250 per year.
C. Persons operating one of the following types of businesses as an independent
• contractor in an establishment owned by another person shall be exempt from this assessment:
1. Hair stylists
• 2. Nail technicians
3. Real estate agents
D. The assessment for all other businesses within the District shall be 100 percent
of the annual business license tax as established pursuant to Chapter 5.08 of the Municipal Code.
SECTION 5: Collection of Benefit Assessment. The benefit assessments shall be
collected by the City in one annual installment. Assessments will be levied on the date the
annual District renewal becomes effective, and for new businesses in the District on the day of
the issuance of a business license by the City. The assessment for new businesses shall be pro-
rated according to the number of full months remaining in the District's fiscal year.
SECTION 6. Penalty for Delinquent Payment. The penalty for delinquent payments
• shall be equal to that established for delinquent business license taxes pursuant to Chapter 5.08
of the Municipal Code, providing that the penalty amount to be added shall in no event exceed
one hundred percent of the assessment amount due. No City Business License shall be
knowingly issued or renewed to any business which, at the time of making application for license
or renewal thereto, is indebted to the City for any delinquent benefit assessment.
SECTION 7. Changes in Assessments. Any businesses covered by this Ordinance shall
also be subject to changes which may be made in the assessments or in the uses to which the
revenues shall be put, as specified in this Ordinance and as permitted by the Act; such changes
shall be made by later ordinance adopted after hearing before the City Council, or by Resolution,
if approved in conjunction with confirmation of the Annual Report.
SECTION 8. Improvements and Activities. The benefit assessments collected pursuant
• to this Ordinance shall be used only for the following purposes:
1. Marketing and Advertising
• 2. Physical Improvements
3. Communications/Outreach Program
4. Administration
The City Council of Newport Beach shall have sole discretion as to how the revenue
derived from the benefit assessments is to be used within the scope of the above purposes;
provided, however, it shall consider recommendations as to the use of said revenue made by the
Advisory Board referenced in Section 9 of this Ordinance. The revenues from the levy of
assessments shall not be used to provide improvements or activities for the direct benefit of
properties outside of the District or for any other purpose not specified in this section or in any
subsequent Ordinance or Resolution.
• Section 9. Advisory Board.
(a) Appointment. The City Council by Resolution 95 -13 appointed an
Advisory Board which shall make recommendations to the City Council on the expenditure of
revenues derived from assessments pursuant to this Ordinance, on the classification of
businesses, as appropriate, and on the basis and method of levying the assessments.
(b) Annual Report. The Advisory Board shall prepare a report for each fiscal
year for which assessments are to be levied and collected to pay the costs of the improvements
and activities described in the report. The report shall be filed with the City Clerk and shall
comply with all the requirements of Streets and Highways Code Section 36533.
(c) Approval of Report. The City Council may approve the annual report filed
by the Advisory Board or may modify any particular item contained in the report and approve it
• as modified. The City Council shall not approve a change in the basis or method of levying
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assessments which would impair an executed contract to be paid from the revenues derived from
the assessments.
SECTION 10. Annual Approval/Resolution. After approval of the report filed by the
Advisory Board, the City Council pursuant to Section 36534 of the Act, shall adopt annually a
resolution of intention to levy an assessment for that fiscal year. The City Council shall hold a
public hearing prior to the adoption of a resolution confirming the Annual Report and Levy of
Assessments.
SECTION 11. This ordinance shall take effect 30 days after passage.
PASSED AND ADOPTED by the City Council of the City of Newport Beach at a regular
meeting thereof held on the 23rd day of March, 1998.
ATTEST:
CITY CLERK
AYES, COUNCIL MEMBERS Thomson, Debay,
O'Neil, Glover, Noyes, Mayor Edwards
NOES, COUNCIL MEMBERS None
ABSENT, COUNC � E S Hedges
MAYOR
Ll
STATE OF CALIFORNIA }
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
• I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do
hereby certify that the whole number of members of the City Council is seven; that the foregoing
ordinance, being Ordinance No. 98 -4 was duly and regularly introduced before and adopted by the
City Council of said City at a regular meeting of said Council, duly and regularly held on the 23rd
day of March, 1998, and that the same was so passed and adopted by the following vote, to wit:
Ayes: Thomson, Debay, O'Neil, Glover, Noyes, and Mayor Edwards
Noes: None
Absent: Hedges
Abstain: None
IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the
official seal of said City this 24th day of March, 1998.
�% . 0%
City Clerk of the City of
Newport Beach, California
t (Seal 1
CERTIFICATE OF PUBLICATION
STATE - C3FEALIrORNIA )
COUNTY OF ORANGE } ss.
CITY OF NEWPORT BEACH }
I, LAVONNE M. HARKLESS, City Clerk of the City of Newport Beach, California, do hereby
certify that Ordinance No. 98 -4 has been duly and regularly published according to law and the order
of the City Council of said City and that same was so published in The Daily Pilot, a daily newspaper
of general circulation on the following date, to wit: March 28, 1998.
In witness whereof, I have hereunto subscribed my name this � day of
,1998.
City Clerk of the City of
Newport Beach, California