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HomeMy WebLinkAboutCity Council - 2011-55 RESOLUTION NO. 2011-55 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2011-2012 WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at Streets and Highways Code § 36500, et seq. (the "Act") authorizes cities to establish parking and business improvement areas for the purpose of imposing benefit assessments on businesses for certain purposes; and The City Council has formed a business improvement area, known as the Huntington Beach Auto Dealers Association Business Improvement District (the "District"), by the passage of Ordinance 3175 on September 8, 1992. The City is proposing to levy an assessment for fiscal year 2011-2012 pursuant to the process detailed in Streets and Highways Code §36500, et seq.; and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2010-2011, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2011-2012. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows: SECTION 1. The City Council hereby approves the Annual Report filed by the Advisory Board in the City Clerk's office attached hereto as Exhibit A and incorporated herein by this reference, which includes a proposed budget for Fiscal Year 2011-2012 and a description of the improvements and activities to be provided for Fiscal Year 2011-2012. SECTION 2. The City Council hereby declares its intent to levy and collect assessments within the District for Fiscal Year 2011-2012. The levy is to apply to small businesses classified by the City of Huntington Beach License Code as Class A Retail Sales, (Al) Auto, New, Used, Parts, including new business of that classification located within the District as shown in Exhibit B in the amounts set forth therein, which exhibit is incorporated herein by this reference. SECTION 3. The assessments collected will be used to cover costs to operate, upgrade, and maintain an electronic reader board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue and other promotional and advertising activities. SECTION 4. A public hearing shall be held before the City Council on September 19, 2011 , at 6:00 p.m., or as soon thereafter as this matter may be heard, in the Council Chambers of the City Hall, 2000 Main Street, Huntington Beach, California, at which time the Council will hear all interested persons for or against levying of the assessment, and the furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing 11-2939/67182 1 auto Resolution No. 2011-55 and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District. those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing the this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5542, or from the Huntington Beach Auto Dealers Association, Inc., 2124 Main Street, Huntington Beach, CA 92648; telephone (714) 536-3200. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION 8. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 15th day of August . 2011. *REVIEND APPROVED: INITIATED AND APPROVED: Director of Ec nomic Developm t 'ROVED AS TO FORM: �t ity Attorney 11-2939/67182 2 auto Exhibit A Resolution N• 2011-55 IMF �1 THE HUNTINGTON BEACH AUTO DEALERS STORE at BUSINESS BELLA TERRA IMPROVEMENT H U N T I N G T O N B E A C H BLVD OF CARS DISTRICT ANNUAL REPORT 2 011 -2 012 toiet• GhrYsler • Dodge • Ford • Nonda •� — 405 �urrrsouthonto-beach-bled.-.-. - Mazda •Mitsubishi • Nissan •T°y°�• f INTRODUCTION MISSION STATEMENT OF THE THE CIATIHUNTINGTON)WA BEACH AUTO DEALERS ASSOCIATION 0OUTOFTHE HUNTINGTON BEACH _ (ASSOCIATION)WAS FORMED ON AUGUST 15,1990 OUT OF THE DESIRE TO BRING NEW CAR DEALERS ON BEACH TOGETHER AUTO DEALERS TO JOIN FORCES, DEVELOP COOPERATIVE COMMUNITY AND MARKETING PLANS AND BETTER SERVE THEIR INDUSTRY AND THE CITY OF THEHUNTINGTON HUNTINGTON BEACH. SUBSEQUENTLY,ON A P APPROVED ER ASSOCIATION 6, 1992 THE HUNTINGTON BEACH CITY COUNCIL APPROVED ORDINANCE NO.3175 ESTABLISHING THE HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT (BID) AS A METHOD OF FINANCING AND MAINTAINING THEIR THEN,STATE- OF-THE-ART DIGITAL READER BOARD SIGN (SIGN). THIS YEAR, 2011 MARKS THE 21 TH ANNIVERSARY OF THE ASSOCIATION AND OUR EFFORT TO CREATE A 21 ST CENTURY SPECTACULAR NEW The Huntington Beach Auto Dealers Association is dedicated to DIGITAL READER BOARD SIGNI serving their New Car Dealer Members.They strive to promote f TRULY THE START OF SOMETHING BIG, THE ASSOCIATION, BID their collective business success, provide an effective marketing AND SIGN,REPRESENT A SERIES OF ACTIONS THAT HAVE HELPED message,and assist with common issues by providing the community PROTECT A MEANINGFUL CASH-FLOW TO THE CRY IN TERMS they serve with a variety of meaningful programs.The Association OF SIGNIFICANT SALES TAX GENERATION, AND OF COURSE, REPRESENT THE BINDING FORCE AMONG THE NOW I I NEW CAR works to protect and expand their business segment in order to be DEALERS DOTTING THE LANDSCAPE OF BEACH BLVD.,SURF CITY, able to provide leadership and focus so that both the members AND HUNTINGTON BEACH, CALIFORNIA. THESE COMPONENTS they serve and our community remain healthy and prosperous. HAVE WORKED TOGETHER TO INSURE ALL PARTIES CONTINUITY OF MESSAGE AND A UNIFIED ORGANIZATION TO WORK WITHIN. OUR NEW PROPOSED READER BOARD SIGN WILL ADD STRENGTH, BEAUTY AND CHARACTER TO OUR MESSAGE AND HELP INCREASE BUSINESS FOR ALL PARTIES INVOLVED. size a D3%Du a�o� aaa� 4 —1 �o�o sacefl9ast17�WWiWiiagID NEW READER BOARD SIGN A NOSTALGIC PAST R Ve-ti-t PA-4r�n a-.,-d Gnu.,. Vu-;. n o The censer,heart and soul of The Hu dngtm Beach Auto Dealers Auodolim and their Beach Blvd of Can Son,,librogh their mmwgement of The Harm ton Beach Auto Dealers Bus.,im rovemesm D'Mrid)has been their arrant Digital Reader Board Sign Mustangs, Corvettes, Chargers, Continentals, Lincoln, Malibu, Thunderbird, Hummers, located at the 405 at Bello Tema.The sigle Wsmea decision mode by the the mast paitive impact on their Plymouth,Honda and Toyota dotted the early Beach Blvd.landscape. Names like Cal ability to acmmpli h their Mission Statement is:The cumin d reliance an the Auto Deakn Reader Board Sign and its power to Worthington,Grath,Terry York,Gustafson,Bill Maxey took the Blvd.through much of Its moth several hunched thousand people per day akxg the well-tmvehed 405, growth during the 1960's,'70's and'80's.For Example,DeUllo Chevrolet has been family San Diego Freeway in both directions Protecting that asset,nwimc intng B of the highest sta lards,olbwig the Sign to grow and mature in these challenging owned and operated since 1960 and HB Chrysler/Jeep has been family owned and t'mn is cacial to the contimed cuslrf ev,to the city atd Dealers The HB Auto operated since 1966.They are local people serving local people from the some locations Dealer%Reader Board operation hatthegreated impact ou ourabiAtyto sellcan, _ in Huntington Beach for well over 40 Years generate sales tax and continue,ho grow. Voildl Today,The Huntington Beach Auto Dealers Association,their Beach Blvd of Cars The Auto Dealers Reader Board Sign is governed by Cahmn policies and!wemtes brand and their new,exceeding expectation Blvd of Cars Store at Bello Terra Shopping today pause of a big and bureaucratic process that the City and Assodcmm engaged In mcmuly.The Sign had been out of compliance with changed polcies Moll is 11 New Car Dealers strong with the arrival of a substantial corporate partner at Coltrane for several yours,blues origkwBy u ors.to the Dealers reullig in the form of Car Pros and their new KIA Store at the former Saturn location. With tram Caavns mdkdly chmghg pemr4<adiliam When theDeakrs were Awlty the proposed enhancement of the digital Reader Bard Sign($1.5 million estimated),the able to identify these times-they canobed in 2010 and iw are moving forward complete re-build of the Toyota of Huntington Beach franchise($18 million),the significantwith their original plan to modemae the Reader Board Sign. expansion of the Norm Reeves Honda Super Store location($4.7 million),and the recent These"Sigm"are the bread and butter of all the Auto Mall, dating So ff em California. They are at the center of Ecawmk Development programs for re-build of the OC Mazda(HB Mazda)store($2.2 million)-the continuing confidence in hundreds of Dealers,dozens of comnwaiues throughout the Region Reader Board the automotive industry by our members has been a bright star for the Association as well Signs condrve to evolve In size,dope and tedndogy.For example the following as the community in spite of a somewhat recent downturn In the economy. renderhg represents the stare of the art Digeal Reader Baal Sign design that would protect our inmol asset over the nextien years with the folawkg partial he of bereno, In addition,our Ford Dealer continues to break records with light duty truck sales, HB S'1'dll Mitsubishi is the number 1 dealer in the US, DeLillo Chevrolet was tapped by GM to 1. Exists in the some foot print as the original Sign -—-- -- -- 2. Designed to significantly reduce energy use I BELtA�llgtA continue and expand their franchise.Chrysler and Dodge are family owned businesses that 3. And,is proposed to use Solar energy for port of Its datttat ct. ` are run hands-on and bottom line.Our Nissan Store is now pan of a huge conglomerate— AsMonagersofahugeresponsibilh to Dealers Members and the community at large,the automotive group out of Salt Lake City and operates as a top store in their chain. Dealer Associotion)through the BID)continually evaluates all aspects of our mutual busness We are:Eleven New Car dealers acting as one—when it comes to marketing,community gook from technology,innovation,marketing and advenisirg perspectives Reader Board . and investment. Sign improvement that increase our ability to communicate with the largest audience at the lowers cost and energy use is a pdmmy goal. 7777 low 1 1 CARS STORE HUMINfiTON BEA[H`5CURRENT DEALER MEMBERS BLVD OF CARS The Huntington Beach Auto Dealers Association e • - e acting as Managersof • • Beach a© e® Conrinvinq the story of Calrrons, the Render Board Sign and c • Dealers Business Improvement ever-changing regulorions, the Association agreed to open Hit Dodge H5 Mazda HB Ford HB Chrysler Jeep Surf City Nissan of HB McK....VW HIS 714-841-3999 e® ■ o "retail"presence is and obour the location of (heir Sign in e® __ fl 2010. AI significant expense (derails in fnoncial report), the ILy* 1 Asso<ia Fon now employs two full time representatives wbh Blvd,IN[air"s 5tole�l01611 1 t `BBBl08pmlW payroll, workers comp, insuronce<onsiderotions, sire signage, H5 Mitsubishi D.Lill.Chevrolet Toyota of H5 [714)622-5277 equipment, et<. labor, rent and office operation represents 9Wdo1[enitore®eol.rnm almost 40%of the total BID Annual Budget. 8 W780-9895 .t: The Associoriwv+egotioretl wish Bella Terra Mall the use of(heir Co+xierge Desk located atCar P.,Ki.of NO Norm Reeves Honda Superstate the Amphitheorer by the CenNry Theatres.Now,the Blvd of Cars Store ploys a dual role; the hose for the Mall unending to scores of doily aston+er visitors looking for everything from rl+e nearest bathroom to specifc individual tenons store locations and...the core role _ election of Blvd of Cors Store&In/ormariw+Cenrer. As the Cor Store the Dealer operated facility propagatesinterest in hansportatiwt produtls of/eyed by the Member Dealerx This includes Board of Directors of Association als• sit as the BID eletlronic hook up to each dealer member through the 6tterner and web sirex Staff also Board •' • they are: Bob Miller,(Toyota of Huntington Beach)acts as President deals with caulk-vp clients wanting automINive or rransporrariwt i+dormation.Literature Paul Conant, Norm Reeves Honda Super Store)ads as Vice President Bill Dernarest,(DeLfflo Chevrolet)ads as CFO jBiwFus— for each Deoler is on display, telephone lines � _ Ste'- exist for insrom access to individuol dealers for -��� ��: _ •"9:- any <liem gvesrions or needs. Shunle Service h. '.;..r Tq;g� wi•' Is provided by each dealer Io and from Bello r L Terra.Arrangwnenrs can be made to lest drive vehicles. Certain In 2010, over 4,000 people 1"ky visited the Store. �_.'Y•.[ -``SS, The Blvd of Cars Store hours of operation are: �.4- Wednesday through Sunday:Noon to 8 pm. '- `.�' C Phone: (7I41622.5277 r.cnn++•••owe.•tom.eo„a.. Email: BlvdofCars$rore@aoLcom cam.+r'sa p r�,.. - 405 r. o m„+nonmo.ocnnmu.- k•°0 Ma:aa iMr�tir£ti�s�s�oYora•V W READER BOARD BID FINANCIALS NEIGHBORING � Official City of Long Beach,NE ' t12 ' BUDGET "Inihiscase,the proposed signis intended to allow the dealershlpsfo provide signage shay is comparable to wmpeHng ouzo dealerships.These dealers are I«aced inland away from the freeway. Newer HUNTINGT dealerships in neighboring dries have been lomtirg near the freeways,which provide greater visibtlity • •BEACH s • DEALERS 1 • ASSOCIATION and opportunity for onstte advertising.Auto sale cersters in neighboring cities have electronic signs of comparable size aM height.The larger sign size will allow all the dealers ro advertise on orie sign. BUSINESS IMPROVEMENT • • DISTRICT • BUDGET The staff,believe shot the request will serve ro further the gook of the zonilg regulations by prompting productivity of I«al businesses and providtsg auto dealers wish signage Pool is comparable to that used OCT by competing businesses in adjacent cities..." Oi • 1, 2011 TO SEPTEMBERr Official City of Long Beach,Worthington Ford "The existing freeway sign hot contributed so the <empetiverless and increased soles at the dealership.However,the existing sign utilizes oNdased technology,which limns its e(fediveness.The new sign is expected to increase soles by approximmely 8 portent.h is recommended that the proposal be accepted,as i1 has been determined that the sign upgrades will retain an PreviousCarryover 33,466.00 existing auto dealership,preserve existing jobs,creole six additional lobs Business Improvement Assessment 172,800.00 al WorPoingt«Ford,retain antl increase sales tan revenues,and provide a promotirnsal opporunity for the city..." Total Revenue206,266.00 Official Westminster.CA "Market research has shown a dlrM mrtehfion between attractive Reader Board City •- 21,350.00 advertising signage and intrease5 in "Staff recommends that the agency in the cost of installing the new Promotional 69,100.00 dealership foot traffK.Due to the massive freeway reocke,board sign which will audle«e that passes by varbus auto Reader Board Sign Maintenance 43,660.00 complement the existing Auto Center Car Store 1 1 tontribule to the continuing prosperity of to hove a dominom advarilsitg presencethe various auto dealers,and provide a In order so hNp mpnre a larger portl« vehicle fop promoting civic information Totale-nses 206,266.00 of the auto market shore..." events the Citizens Business Bank Anerso. The agreement starts to the agency,license GDODGEMonthly Assessment per Dealer $ 1,440.00 Official Cfty of San Bernardino to use 10% of the operating time for of the installation of our new, full color LED display.The new systet, period of twenty years:' replaced_• directly with Traffic on the 215 freeway.We saw an Inn ediote increase ,;. before Chripsawas 2010 we installed the display which communicales in fact traffic and,consisguiperspily,an increct*in business. [it January and February of this year we experienced an 8%increase In bL month,March showed on pampipAng 16%hereto....... ...... our new car sales,but also wed op _ \ F 1 //M1,y le't aaE9 f M H Ya.JPBO ' • �. I I.4 �� , 1. a0 LIaM1�, H1�ia �t••aV,y� THE HUNTINGTON BEACH READER BOARD SIGNS AUTO DEALERS ASSOCIATION THE ECONOMICS AND THE COMMUNITY WE S OF IT ALL! ERVE: 2010 cm 4MMO= New Vehicle Sales $34,074,000 $374,814,000 Cost of Sign City Portion Dealer Portion Status Used Vehicle Sales $12,453,000 $136,983,000 City of Industry $1,200,000 100% 0 Completed Service and Parts Dept.Sales $8,749,000 $96,139,000 000036 000 $609 276, , , City of Industry 2nd Sign $500,000 100% 0 In Process Total Dollar Sales $55, II Westminster $700,000 100% 0% In Process Huntington Beach $1,500,000 0% 100% In Design Total New Units b65 1 L935 ti65 Total Used Units 7,315 Fontana $ 00 % 0% Completed Total Vehicles Sold 1,750 19,250 Buena Park $1,101,100, 75000 75% Dealers Pay 25% In Process San Bernardino $850,000 City Guar Loan Loan Completed Total Full Time Employees 85 935 Moreno Valley $800,000 100% 0 In Process Total Par[Time Employees 5 55 Cerritos $1,500,000 75% 25% In Process Total Employees 90 990 Ontario(Auto Center) $1,100,000 50% 50% Completed Ontario(Auto Center) $250,000 50% 50% In Process Total Wages $4,584,000 $50,424,000 Ontano(Mark Christopher) $600,000 50% 50% In Process City Total General Total City Sales Total Sales Tx %Auto of Total Advertising $602,000 $6,622,000 Fund Budget Tax 2010 from Auto , ., Other Products&Services from CA Business $1,480,000 $16,280,000 2010 ers as a group Total Local and Statewide Expenses $2,082,000 $22,902,000 City of Industry $35,779,117 $27,803,909 $2.221,098 8% City of Industry 2nd Sign $35,779,117 $27,803,909 $2,221,098 8% Total State Payroll Taxes $108,000 $1,188,000 Westminster $44,456,492 $11,857,702 $2,372,689 20% Total Federal Payroll Taxes $1,125,000 $12,375,000 Huntington Beach $177,938,548 $24.225,000 $2,994,738 9% Total Employee Taxes $1,233,000 $13,563,000 Fontana $90,462,506 $20,796,628 $3,000,384 15% Sales Tax Collected $3,390,000 $37,290,000 Buena Park $53,424.11 $18.634.697 $4,055,233 21% Real Estate Taxes $108,000 $1,188,000 San Bernardino $129,474,100 $22,964,400 $1,600,000 7% Total Taxes(Paid or Collected) $3,498,000 $38,478,000 Moreno Valley $83,446,800 $9,735,000 $701,112 7% Total Tax Revenue fr Dealers in HB $4,731,000 $52,041,000 Cerritos $59,888,130 $17,166,109 $6,000,000 35% Total Tax Revenue To Huntington Beach $440,700 $4,847,700 Ontario(Auto Center) N/A N/A N/A N/A State and Local Business Taxes and Fees $36,000 $396,000 Ontario(Auto Center) N/A N/A N/A N/A Charitable Contributions $35,000 $385,000 Ontario(Mark Christopher) N/A N/A N/A N/A o0=- .SLo r, o - o�jo�jo (r ) o� a ANNUAL REPORT �$o�Oo�°�o 2011 -2012 Auto Dealers Go "Green" with New Reader Board Sign proposal including: (Partial List) ❑ Proposed New Huntington Beach Auto Dealers Reader Board Sign will be fully integrated into the existing Bella Terra landscape. ❑ New 20mm LED pixels are 87% more energy-efficient than the current 33mm LED pixels. w �Y. ❑ Proposed Solar Panel array (integrated into Sign Design and structure) is designed to provide power for non-LED, back-lit elements of the sign. ❑ Existing Overall Sign Square Footage = 1679 sf Proposed Overall Sign Square Footage = 1679 sf Cl Existing Reader Board Sign at 85' Overall Height. ❑ Proposed Reader Board Sign at 85' Overall Height. ❑ All Aluminum use in construction of the Sign is BLVD OF CARS very environmentally friendly .090 gauge. "Aft STORE 1 a. _ - at I I BELLA TERRA 1 1 t 1 1 I 1 r� � I 1 I 1 I 1 I I I 1 I _ r Resolution No. 2011-55 Exhibit B IiUNTINGTON REACH AUTO DEALERS BID LIST OF MEMBER H.B. Chrysler-Jeep H.B. Ford Rick Evans/Ross Heiman ®scar Bakhtlari/®mar 16701 Beach Blvd. 18255 Beach Blvd. Phone 841-3999 Fax 842-2903-841-9993 Phone 842-6611 Fax 847-8788 H.B. Mazda Surf City Nissan John Patterson/Eric Casillas-GSM Larry Smith/Fred Angluli 16800 Beach Blvd. 17331 Beach Blvd. Phone 848-7739 Fax 847-1265 842-6666 F 375-0076/847-0759 Toyota of HS H.B. Mitsubishi Bob Miller/Dennis Prado Abbas Ahmadi/Chuck Bien 18881 Beach Blvd. 16751 Beach Blvd. Phone 847-8555 Fax 847-1105 Phone 375-9493 Fax 842-1563 Delillo Chevrolet Mc Kenna Motors Dave Delillo/Bill Demarest Marin Delgado/Danny Mc Kenna 18211 Beach Blvd. 18711 Beach Blvd. Phone 847-6087 Fax 847-6721 Phone 842-2000 Fax 714-843-8369 Norm Reeves Honda Huntington Beach Dodge Paul Conant/Jason Curnyn Clay Jaynes/Larry Smith 19131 Beach Blvd. 16555 Beach Blvd Phone 842-5431 Fax 375-9783 Phone 847-5515 Fax 596-0230 Car Pros Kia of Huntington Beach BILL. NELSON BID Director Ken Phillips 714-536-8614 18835 Beach Blvd surffhbc@socal.rr.com Huntington Beach, CA 92647 Res. No. 2011-55 STATE OF CALIFORNIA COUNTY OF ORANGE ) ss: CITY OF HUNTINGTON BEACH ) I, JOAN L. FLYNN the duly elected, qualified City Clerk of the City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do hereby certify that the whole number of members of the City Council of the City of Huntington Beach is seven; that the foregoing resolution was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council at a regular meeting thereof held on August 15, 2011 by the following vote: AYES: Shaw, Harper, Hansen, Carchio, Bohr, Dwyer, Boardman NOES: None ABSENT: None ABSTAIN: None QP@n)- 62(- Cit Jerk and ex-officio Gerk of the City Council of the City of Huntington Beach, California