HomeMy WebLinkAboutCity Council - 2011-72 RESOLUTION NO. 2011-72
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH APPROVING 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, the Huntington Beach Auto
Dealers Association 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.
On August 15, 2011 , the City Council adopted a resolution declaring
its intention to levy an annual assessment for Fiscal Year 2011-2012 as proposed in the District's
Annual Report.
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 and adopts 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 report 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 of the City of Huntington Beach hereby authorizes a levy
and collection of assessments within the District for fiscal year 2011-2012 as proposed in the
Annual Report. 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 in the amount of One Thousand Four
Hundred Forty-Four Dollars ($1,440.00) per month as set forth on Exhibit B, and incorporated
herein by reference.
SECTION 3. The assessments collected shall 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.
11-2939/67181 1
auto
Resolution No. 2011-72
SECTION 4. This resolution shall take effect on October Ol, 2011 2011.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 19th day of September , 2011.
REVIEWE APPROVED: INITIATED ND APPR VED:
ity anager Director of Econwf& Development
APPROVED AS TO FORM:
4
city Attorney
11-2939/67181 2
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ItT 10 N Sm"I'A'"E M E N T
INIFRODU `1`10N M 15`4 S
OF THE
THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION
(ASSOCIATION)WAS FORMED ON AUGUST 15,1990 OUT OF THE HUN201"ING53"'I"ON BEACEN
DESIRE TO BRING NEW CAR DEALERS ON BEACH BLVD.TOGETHER
TO JOIN FORCES, DEVELOP-COOPERATIVE COMMUNITY AND AUTO
-
MARKETING PLANS AND BETTER SERVE THEIR INDUSTRY AND THE _ ALER:�
CITY OF HUNTINGTON BEACH. SUBSEQUENTLY, ON SEPTEMBER
8, 1992 THE HUNTINGTON BEACH'CITY COUNCIL APPROVED
7 ORDINANCE NO.3175 ESTABLISHING'. HE HUNTINGTON BEACH
AbSO, 1', TION
¢r. 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
The Huntington Beach Auto Dealers Association is dedicated to
" OUR EFFORT TO CREATE A 21ST CENTURY SPECTACULAR NEW -tea 3sn�
DIGITAL READER BOARD SIGN1 ` " serving their New Car Dealer,Members.They strive to promote
TRULY THE START OF SOMETHING BIG, THE ASSOCIATION;BID' Their collective business success, provide do effective marketing s'
AND SIGN,REPRESENT A SERIES OF ACTIONS.THAT HAVE.HELPED.. ;. message,and assist with common issues by providing the community
N'. PROTECT A MEANINGFUL CASH-FLOW TO THE CITY IN TERMS
\O - !,,., they serve with a variety of meaningful programs.The Association
p� OF SIGNIFICANT SALES TAX GENERATION, AND OF COURSE,
REPRESENT THE BINDING'FORCEZAMONG'THE NOW'1'1"NEW'CA'R works to protggt,and expand,their;busines'filegment in order to be
..
DEALERS DOTTING THE.LANDSCAPP OF.BEACH 84VD SUIjF(41TY„ able to provide leddershep and focus'so'}that both the members
AND HUNTINGTON BEACH, CALIFORNIA THESE COMPONENTS
they serve and our community remam he 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 WILC'ADD STRENGTH,
BEAUTY AND CHARACTER TO OUR MESSAGE AND-HELP-.INCREASE
BUSINESS FOR ALL PARTIES INVOLVED.
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NEW READER BOARD SIGO'N
050'T A Lu"4 1('3TA
A N O ST A VV
The center,heart and soul of The Huntington Beach Auto Dealers Association and their Beach Blvd of Cars Store,(through their
management of The Huntington Beach Auto Dealers Business Improvement District)has been their current Digital Reader Board Sign
Mustangs; Corvettes, Chargers, Continentals,,Lincoln, Malibu, Thunderbird, Hummers, located at the 405 at Bella Terra.The single business decision made by the'Assodation'having the most positive impact on their
Plymouth,Honda and Toyota dotted the early Beach Blvd. landscape. Names like Cal ability to accomplish their,Mission Statement is-The continued reliance on the Auto Dealers Reader Board Sign and its power to
Worthington,Grath,"Terry'York,Gustafson,Bill Maxey took'.the BIvd.a touch several hundred thousand
hrough much of its people per day along the well-travelled 405, 1x, ELF
,San Diego Freeway in both directions.Protecting that asset,maintaining it at the off, ;`^:ice r ;�jr5ta,�,+-�x��if'
growth during the 1960's,.'70's and`80's.For Example,DeL!I!o Chevrolet has been family " ` 't"
'highest standards,allowing the Sign to grow and mature in these challengingry, ".n.." '•:z.
owned and operated"since 1960 and HB Chrysler Jeep,has been.famil owned and Y P Y times is trucial to the continued cash-flow to the city and Dealers.The HB Autoag4!!
.operated since 7966.They are local people serving local,people from the•same locations :Dealer's Reader Board operation has the greatest impact on our ability to sell cars,
in Huntington Beach for well over 40 Years generate sales tax and continue to grow.
i The Auto Dealer's Reader Board Sign is governed by Caltrans policies and operates
Voila!Today,The Huntington Beach Auto Dealers Association,their Beach Blvd of Cars
today because of a long and bureaucratic process that the City and Association
brand and..their new,exceeding expectation Blvd of Cars,Store at,Bella Terra Shopping, engaged in recently.The.Sign'had been.out of compliance with changed policies
Mail.is 1 1 New Car Dealers,strong.with the arrival of a,substantial corporate partner at Caltrans for several years,issues originally unknown to the Dealers resulting
in.the;form of Car Pros-and their new KIA Store at the former Saturn-location. With from Caltrans radically changing permit conditions.When the Dealers we,re finally `
the proposed enhancement of the digital Reader Bard'Sign($1.5 million estimated),the able to identify those slues-they complied in 2010 and now are moving forward
with their original plan to modernize the Reader Board Sign.
complete re-build of the Toyota of Huntington Beach franchise($18 million),the significant
These"Signs'are the bread and butter of all the Auto Malls doting Southern
t frl. expansion of the Norm Reeves Honda Super Store location'($4.7 million),and the recent
lJ - • California. They_are at the center of Economic Development programs for e
re-build of the OC Mazda(HB Mazda)store($2.2 million)-the continuing confidence in
�p hundreds of Dealers,dozens of communitiesthroughout the Region Reader Board p
the automotive industry by our members has been a bright star,for,the Association as well Signs continue to evolve in size,shape and technology.For example,the following
as the community in spite of a somewhat recent downturn in the economy, rendering represents the state of the art Digital Reader Board Sign de! _
would protect our mutual asset over the next ten years with the following partial list of benefits: -" - - - O
In addition,our Ford Dealer continues to break records with light duty truck sales, HB
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 I361 LAj 1 ERRA O
continue and expand their franchise.Chrysler and Dodge are family owned businesses that 3. And,Is proposed to use Solar energy for part of its demand. ;--'
are run hands-on and bottom line.Our Nissan Store is now part of a huge conglomerate— tv
- As Managers of a huge responsibility to Dealers Members and the community at large,the - CD
,.automotive group out of Salt Lake City and_operates as a.top store in their chain., .Dealer Association(through the BID)continually evaluates all aspects of our mutual business
We area Eleven New Con dealers acting as one.—when'it comes to marketing,community goals from technology,innovation,marketing and advertising perspectives.Reader Board 1
and investment. Sign improvement that increase our ability to communicate with the largest audience at the N
.. _ .. lowest cost and energy use is a primary goal. `(„^'%.`, '� 6'S't"}'r
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HUNTINGTON ,BEACH AUTO DEALERS ASSOCIATION
BUSINESS IMPROVEMENT DISTRICT BUDGET
,�" • �'-� `�; .., ;sy fd a�.yl= �yr�,a0:4, `e� �w•�}}`u'�,""� ,�`
OCTOBER 1,2011 TO SEPTEMBER 30,2012
k
REVENUE:
Previous Year Carryover $ 33,466.00 _•
Business Improvement Assessment: 172,800.00 ;F.?'' Aw
Total Revenue 206,266.00
XPENSES: l 1,"OfficW'Ontand
Reader Board' „f >✓
City Charges 21'350.00' ,Staff I recommends}•thatnthe''agenc�":
1
u _ particlpateinthecostofmstallirigthene
Promotional 69:100.00 freeway)deader board sign Which Wi,il,
Reader Board Sign Maintenance. .43,660.00 F;complementtheexistingAutoCenter'i;Ip
�
Car Store 72,156.00 (contribute To the contlqumg prosperity+o
_ _ � .the van_ous auto dealers i ana�provide dre-'
,- _ _ ,';'vehicle for;promohng awc'mformatior�-'„
Total Expenses 206 266.00 1 dndz venisauch as those+scheduled at
therCitlzens Business'Bank Arena
a , I I agreement grants to the agency,license ,
-- Monthly Assessment per Dealer $ 1,440.00 ®ffieia6 City Of Saw ernard�no ry use i o% of the operating rime fbr j
d.K ,
1 1 I am wnhng to relate to you the success,we have experienced as a result the promohonrof avtc mformahon fora; .i
of the,;installation of ours new full color LED display 'The new system period of twenty years I
,replaced an old lamp display which we have used for!many years,Just 1 (.•-Ei, q ' � "d'x'i" -+t �-•-•' - '�
befores Christmas"2010we,mstalled'ahe display which communKates
c4• i3 directly wdh traff c onihe 21"5 freeway:We saw an Immediate increase o•••• o
"- g` a r n footaraffic and,cohsequently an increase(n business IIn January and ° o
� yg" I "�` February of this yeartuwe ekpengnced qn S%increase m busine;ss per '' e.a-
month March showed an amazl�`15%increase This was not only felt in i P�
- 'r , i 7o YlrG(IgWh
our new car sdles;but also used carso °
4 of
r3'IeE+x'w•"T;a"-.•.'�,','✓,''., -s,y.� n_^tn- ?'.�*.,.,'rt'd.'+":'nl,''t 7t r )+ E.,t. k i, } _ - r
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4,
-1 H`�k'r' ,*;,, ,�r'4'�, rdv�. ,r"Z` gd',,�"f"X:r`, „�: ,. •L,
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; 1,EADERBOARR..-STGNS
AIDD THE COMMUNITY WE
THE EC".'O'NOMILb,
SERVE. 2010
OF IT ALL!
' ql i :{3 ''n-',�( 0 sy a����. i r'-9" �r _ '•rrr���a e� '° - B - " ,,
'-"'New Vehicle Sales''i $34,074,000 $374,814,000:
,1 a .� ;f, 7� .� ,. r�: � d'Ix�. .=„tg5:1 ';n(.;�; °is;. ,Used Vehicle Sales $12,453,000 $136,983,000.
a"aas.,�rri, ,,ate„ �,� r' ui"[" 5.: �,u '>�
v. ,._. "xv's..«.:. •. e t 8749000 $96139000
City of Industry, $1;200,000:` 100% 0,,, Completed Service and Parts D p Sales $ ,
; 4Total Dollar Sales+;t=br $55,276,000 $608103,6,006
City of Industry 2nd Sign 1$500,000 100% 0 In Process
Westminster $700,000 100%, 0% .. In Process
Huntington Beach $1,500,000 0% 100%, In Design Total New.Units 1,085, 11,935
a Used Units 665 7,315
Fontana $,600,000 100% 0% Completed 1 5Id 50
Tot
'Total Vehicles'Sold`-- 1,750 ° 19,2
Buena Park $1,100,000 75% Dealers Pay 25% In Process
San Bernardino $850;000 City Guar Loan Loan Completed Total Full Time Employees 85 935
Cerritos Moreno Valley $800,000 100% 0 In Process
Total Part Time Employees 5 55
rritos $'1,500,000 75% 25% In Process Total Employees 90:- 990,
,'lntario(Auto Center) $1,100,000 50% 50% Completed
j fitario(Auto Center) $250,000 50% SO% In Process 9 $4,584,000 . $50,424,000
Intario(Mark Christopher) .i $600,000 50% 50%0 In Process Total Wa es: .`.,j,i' y
O
Advertising u' $602,000 $6,622,000 C
S •S ':yi, _ -: - •'3' e - 4 •3...,- �= .j,.57.�^ ' I.r� � r�,� .. g
Other Products&Setvices'from CA Business $1,480,000 $16,280,000 0
�d'"`` .`'1..,,;, �,,., e :�e ,••�+..-r. e'�1 0 f�asi' c 1 n''R .: �'7-n .i fi, - - ..
'` gar:" -" '` -tea, , ,•,`?; _;, ; .n b �' � i;,,.�',,�; �ia-';rh ''u' ,. .. 'Total Local'an enses• ',$2,082,000.'� �$22,902,000
_ -
O
City of Industry $35,779,117 $27,803,909 $2,221,098 8%
803,909 $2,221,098 8% y N
Total State Payroll $108,000 $1,188,000
City ity of Indinststry2nd Sign $35,779,117 $27, $2
�C of o, „ Total Federal Payroll Taxes $1,125,000 $12,375,000
eP i:!'. $44,456,492 $11,857,702 ,372689 20% ,
° Total Employge;Toxes 51233,000 $13,563,000
Huntington Beach $177,938,548 $24,225,000 $2,994,738 9/o N
Fontana $90,462,506 $20,796,628 53,000,384 15% Sales Tax Collected $3,390,000 $37,290,000
d Real Estate Taxes.;'; $108,000 $1,188,000
Buena Park $53,424.11 $18.634.697 $4,055 233 21%
Sari'Bernardino $129,474,100 $22,964,400 ' $1,600 000 r 7%
Total Taxes(Paid of Collected) $3,498,000„ $381478,000
MoPeno Valley $83,446,800 $9,735,000 $701,112 7% ii.q Total Tax.Revenue:'fr Dealer's in HEI-, $4,73t 0W' $52,041,000
Cerritos -' $59,888,130 $17,166,109 ` $6;000,000 350 " Total,Tax Revenue,To Huntington:Beach $440 700 ,. $4,847,700 „
Ontario(Auto Center) N/A N/A N%' N/A State and Local Business Taxes and Fees $36,000 $396,000
Ontario(Auto(enter) N/A N/A N/A' "" N/A Charitable;Contributlons ':.'..• 535,000. - $385,000
Ontario(Mark Christopherr): N/A N/A N/A N/A ° ot3oO °
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Resolurion No.2011-72
Exhibit B
HUNTINGT®N BEACH AUTO DEALERS BID
LIST OF MEMBER
H.B.-Chrysler-.Beep H.S. Ford
Rick Evans/Ross Heiman Oscar Bakhtiarl/Omar
16701 Beach Blvd. 18255 Beach Blvd.
Phone 841.3999 Fax 842-2903-841-9993 Rhone 842-6611 Fax.847-8788
H.B. Mazda Surf City Nissan
.Bohn Patterson/Eric Casillas-GSM Larry Smith/Fred Angiula
16800 Beach Blvd. 17331 Beach Blvd.
Phone 848-7739 Fax 847-1265 842-6666 F 375-0076/847.0769
Toyota of FIB Mitsubishi
Bob Miller/Dennis:"Prado. ;f _:::. e.. Abbas-Ahmadl/Chuck Bien
18881 "Beach Blvd. 1675! Be iifi'Blvd.
Phone 847-8555 Fax 847-1105 r t :: " ;' ::Phone 375-9493 Fax 842-1563
be16110 Chevrolet{ Me Kenna Motors
Dave De1190o/Bill 06marest , - Marin'-Delgado/Danny-Mc Kenna
1$211 Beach'Jslvai. 8711 Beach Blvd
Phone 847-6087 Fax 847-6721 Phone,842-2000.Fax 714-843-8369
Harm Reeves Fonda Flprilington Beach Dodge
Paul Conant/Jason Curnyn - . Clay,44 9es/Larry.Smith -
' 91.34 Beach:Blvtl._:',':.:_: �.";: �� ;'-..;_ _- 16555..Beach Blvd-
Phone 842-5431 .Fax 375-9783 Phone.84.7.-5.515 Fax'596-0230
Car Pros 6Ca of Huntington Beach BIL..L NELSON-SID Director
lien Philii,ps; 7114-536-861.4', -
1,8835::Beach SRvd:: :-
surfln8n( sm.cal:rr:com:,_ :.
HuntinS#on:Beach, CA.92647
v.i
Item 10. - 14r1-:-. _. .._.: �� �:. _ , . , `_ ; : : � -302- . _
Res. No. 2011-72
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 September 19, 2011 by the following vote:
AYES: Shaw, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: Harper, Dwyer
ABSTAIN: None
y Clerk and ex-offic Clerk of the
City Council of the City of
Huntington Beach, California