HomeMy WebLinkAboutCity Council - 2012-57 RESOLUTION NO. 2012-57
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 2012-2013
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 2012-2013 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 2011-2012, ("Annual Report") which sets forth the amount and basis of levying the
assessment for Fiscal Year 2012-2013.
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 2012-2013 and a description
of the improvements and activities to be provided for Fiscal Year 2012-2013.
SECTION 2. The City Council hereby declares its intent to levy and collect assessments
within the District for Fiscal Year 2012-2013. 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 17, 2012 , 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
12-3389/81581 1
Resolution No. 2012-57
or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the
hearing 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 20th day of August , 2012.
Mayor
REVI D ND APPROVED: TED AND APPROVED:
Cit n ger Director of Ec nomic Development
APPROVED AS TO FORM:
_A t
.L�M_tL_=,
City Attorney
12-3389/81581 2
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Item 11. - 6
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Huntington Beach Auto Dealers Association was formed on August 15, 1990
�f the desire to bring new car dealers on Beach Blvd. to join forces, develop
mrative community and marketing plans and better serve their industry and the
'f Huntington Beach. Subsequently,on September 8, 1992 the Huntington Beach
;ouncil approved ordinance no. 3175 establishing the Huntington Beach Auto '
ors Business Improvement District(BID)as a method of financing and maintaining
then, state of the art digital reader board sign. This year, 2012 marks the 22nd >
'ersary of the association and our effort to create a 21 st century spectacular new '
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iI reader board sign for the community! With the recent dedication of the new, The Huntington Beach Auto Dad
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)ot tall, wedge-shaped,two sided, 1,200 square foot digital faced sign, the Auto New Car Dealer Members locg
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;rs Association will be able to dedicate new and greatly needed revenue to further their collective business success
handise the business and financial interest of both the Beach Blvd. of cars and and assist with Common issues'
ity of Huntington Beach. a variety of meaningful progrfE
xpect significant new sales and sales tax generation,as a result of the joint effort
expand their business segment
men the city and the dealer network. The ten dealer network dots the landscape
1 Beach Blvd.,Surf City, USA. These components have worked together to insure and focus so that both the men
irties continuity of message supporting a unified organization working together healthy and prosperous.
common goals. Our new reader board sign adds strength, beauty and character
r message and helps increase business for all parties involved.
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Mustangs, Corvettes, Chargers, Continentals, Lincoln, Malibu, Thunderbird, Voila! Today, The Huntington Beach Auto Dealers Association, their Beach Blvd
Hummers, Plymouth, Honda, Toyota and even the Dodge Dart dotted the early of Cars brand and their new, exceeding expectation Blvd of Cars Store at Bella
Beach Blvd. landscape. Names like Cal Worthington,Groth,Terry York, Gustafson, Terra Shopping Mall is 10 New Car Dealers strong.With the arrival of a substantial
Bill Maxey took the Blvd,through much of its growth during the 1960's,70's and corporate partner in the form of Car Pros and their new KIA Store at the former
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'80's, For Example, DeLillo Chevrolet has been family owned and operated since Saturn location last year and the recent merger of the Chrysler, Dodge, Jeep
1960 and HB Chrysler/Jeep has been family owned and operated since 1966. franchises, the future is bright. With the completion of the digital Reader Board
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They are local people serving local people from the same locations in Huntington Sign($1.5 million capital cost),the complete rebuild of the Toyota of Huntington
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Beach for well over 40 Years. Beach franchise($18 million),the significant expansion of the Norm Reeves Honda
Super Store location($4.7 million),the recent re-build of the OC Mazda(HB Mazda)
store($2.2 million),the under construction almost complete rebuild of the Surf City 0
Nissan Store ($2 million), the about to be renovated DeLillo Chevrolet Store, the
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Huntington Beach Ford Store and rebuild of the new combined Rick Evans Chrysler, =3
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Dodge,Jeep/Ram facility-these significant and on-going financial commitments o
further demonstrate the continuing confidence in the automotive industry held by o
our members. N
In spite of fairly harsh economic downtown in the national, regional and local
economy this group of 10 entrepreneurs have pushed forward to protect, expand
r., and retain their business interest in Huntington Beach,Surf City,USA.
Our dealers have continually led in their Make and Model franchise areas. Ford's
growth is monumental since they opened five years ago, Kia continues to break
records even during their inaugural year with the Beach Blvd of Cars. Chrysler
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' has locked down State-wide and national awards for sales performance over a
long period of time and the other brands win industry awards,Sales performance
H11 �.` - awards and Customer Satisfaction Achievements regularly.
Hands-on and bottom line local business leadership models,combine with a level
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HB Dodge,Chrysler Jeep Ram Huntington Beach Mazda Huntington Beach Fc
�za �� » ` ` a m ` A e o • c ,. 714-841-3999 714-848-7739 714-842-6611
www.hbchryslerjeep.com www.ocmazda.com www.huntingtonbeat
Huntington Beach Mitsubishi Toyota of Huntington Beach McKenna VW Huntin
888-780-9895 714-847-8555 866-925-0602
www.hbmitsu.com www.toyotaofhb.com www.mckennavolks�
Norm Reeves Honda Superstore DeLillo Chevrolet Surf City Nissan of H
714-842-5431 714-847-6087 714-500-6000
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www.normreeveshb.com www.delillo.com www.surfcitynissan.c
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The election certified Executive Committee of 1
the Association also sit as the BID Board Men-
Bob Miller, (Fyota of Huntington Beach) acts as President
Paul Conant, (Norm Reeves Honda Super Store) acts as Vice President
Bill Demarest, (DeLillo Chevrolet) acts as CFO
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the past 100 years...they
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of the people they served October 1 , 2012 to September 30, 2013
f developed to that stage in �
ent is the story with Digital ,
Jova, the Camaro, etc. no z
ie auto Dealers pioneered Business Improvement Assessment
Total Revenue N
>tatement they make today „ CD
N
iched this year adjacent to `
_ Total Revenue
City Charges
Promotional
Sign Utilities, Maintenance and Insurance
Car Store
Total Expenses
Budgeted Revenue Less Expenses
Previous Year Carryover/Reserve
BELLA IT Year End Reserve
E,
Current Monthly A�
2Y
32,
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"P 'w:, nwewumuyuvrea
New Vehicle Sales $374,814,000 $394,000,000
> Used Vehicle Sales $136,983,000 $158,000,000
Service and Parts Dept. Sales $96,139,000 $99,000,000
Total Dollar Sales $608,036,000 $651,000,00
� Total New Units 11,935 12,200
Total Used Units 7,315 7,000 +
Total Vehicles Sold 19,250 19,200
,..m Total Full Time Employees 935 900
Total Part Time Employees 55 50 0
Total Employees 990 950 �
3 Total Wages $50,424,000
$48,100,0'M
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� � � ' Advertising $6,622,000 $7,300,000�
` Other Products&Services $16,280,000 $15,700,04
3X&Fh x 33'wfrom CA Business
" Total"Local and Statewide Expenses $22,9021000 $23,000,000i S &-% ecs
r` Total State Payroll Taxes $1,188,000 $2,870,000
Mechanical Size. Total Federal Payroll Taxes $12,375,000 $12,000,000
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- 'lowoble141vjh x' ,). Total Employee Taxes $93,563,000 $14,870,000
Suapoobd Copy rlm(hxwj, Sales Tax Collected $37,290,000 $39,100,000
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HuntIngton Reach Cade Real Estate Taxes $1,188,000 $325,560
1i l a This sign is ur'loft 83 9Is it a Mdevsk nara Total Taxes(Paid or Collected) $38,478,000 $50,233,850
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Item 11. - 12
Exhibit "B" - Resolution No. 2012-57
EXHIBIT B
HUNTINGTON BEACH AUTO DEALERS BID
LIST OF MEMBERS
H.B. Chrysler-Jeep Car Pros Kia of Huntington Beach
Rick Evans/Ross Heiman Ken Phillips
16701 Beach Blvd. 18835 Beach Blvd
Phone 714 841-3999 Phone 714 274-6176
H.B. Mazda H.B. Ford
John Patterson/Eric Casillas-GSM Oscar Bakhtiari/Omar
16800 Beach Blvd. 18255 Beach Blvd.
Phone 714 848-7739 Phone 714 842-6611
Toyota of HB Surf City Nissan
Bob Miller/Dennis Prado Larry Smith/Fred Angiuli
18881 Beach Blvd. 17331 Beach Blvd.
Phone 714 847-8555 Phone 714 500-6000
Delillo Chevrolet H.B. Mitsubishi
Dave Delillo/Bill Demarest Abbas Ahmadi/Chuck Bien
18211 Beach Blvd. 16751 Beach Blvd.
Phone 714 847-6087 Phone 714 375-9493
Norm Reeves Honda McKenna VW of Huntington Beach
Paul Conant/Jason Curnyn Mann Delgado/Danny McKenna
19131 Beach Blvd. 18711 Beach Blvd.
Phone 714 842-5431 Phone 714 842-2000
Bill Nelson
BID Director
714-536-8614
surfhb@socal.rr.com
Item 11. - 13 xB -1 40-
Res. No. 2012-57
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 20, 2012 by the following vote:
AYES: Shaw, Harper, Dwyer, Hansen, Carchio, Bohr, Boardman
NOES: None
ABSENT: None
ABSTAIN: None
City Werk and ex-officio rk of the
City Council of the City of
Huntington Beach, California