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HomeMy WebLinkAboutCity Council - 2013-37 RESOLUTION NO. 2013-37 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 2013-2014 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 2013-2014 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 2012-2013, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2013-2014. 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 2013-2014 and a description of the improvements and activities to be provided for Fiscal Year 2013-2014. SECTION 2. The City Council hereby declares its intent to levy and collect assessments within the District for Fiscal Year 2013-2014. 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 3, 2013 , 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 ]3-3833/99516 1 Resolution 2013-37 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 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 5 t h day of 12013. e Mayor REVI r APPROVED: APPROVED AS TO FORM: 11 W Citanaper ity Attorney -y-K- 13-3833/99516 2 OH�Y. CHRYSLER•DODGE•FORD. 93ex44 3[Wo f Cas^s,,cam �,► VI E , 'A•M4ZDq•MITSUBISHI•NISS/l I The Huntington Beach Auto Dealers Association Business Improvement District www.BeachBlvdofCars.com Resolution 2013-37 Introduction 2013 = 2014 he Huntington Beach Auto Dealers Association was formed August 15, 1990 in order to have new car dealers on Beach Blvd. join forces, develop cooperative community and marketing plans and better serve their industry and the City of Huntington Beach. Then, September 8, 1992 the Huntington Beach City Council approved Ord. # 3175 establishing the Huntington Beach Auto Dealers Business Improvement District (BID) as a way to finance and maintain their then, state of the art digital reader board sign. 2013 marks the 23rd anniversary of the association and it's effort to create a 21st century spectacular new digital reader board sign for the community! With the dedication of the new, 85 foot tall, wedge-shaped, two sided, approximately 1,200 square foot digital faced sign, the Auto Dealers Association are now able to dedicate new and greatly needed revenue to further merchandise their business and financial interest of both the Beach Blvd. of cars and the City of Huntington Beach through a greater and mutual economic development effort. Significant new sales and increased sales tax generation, as a result of the joint effort between the city and the dealer network through the establish of the sign has been realized even during the initial year of operation.With some further mutual cooperation,we are hoping for significantly increased revenue for both the City and Dealer Network during the 2012 -2013 Fiscal period. The ten dealer network dots the landscape along Beach Blvd., Surf City, USA. These components have worked together to insure all parties continuity of message supporting a unified partnership working together with common goals. Our new reader board sign adds strength, beauty and character to our message and helps increase business for all parties involved. I STORE i i at i BELLA TERRA �i 1 The Huntington Beach Auto Dealers Association is dedicated to serving the New Car Dealer Members located on Beach Blvd. They strive to promote their collective business success, provide an effective marketing message, and assist with common issues by providing the community they serve with a variety of meaningful programs. The Association works to protect and expand their business segment in order to be able to provide leadership and focus so that both the members they serve and our community remain healthy and prosperous. NOW thru OCTOBER 281"�-• /)/Te, &Z:�:� Fvnrp Wrdnnvday lhnl S,,,daV1 I I I 1 1 i Huntington Beac o ' Sunday 2012 April28 P,x.k...��. www.iostehb.coln ... �UII� �rx5C4 www ...�._ "LPN 0 GDWORB�wH HUNTINGTON SE A C H IIUNTINGTON BBAC HUNTINGTON BEACH BLVD OF CARS' BLVD OF CARS BLVD OF CARS i it -- Mustangs,Corvettes,Chargers,Continentals,Lincoln,Malibu,Thunderbird,Hummers,Plymouth,Honda, Toyota and even the Dodge Dart dotted the early Beach Blvd. landscape. Names like Cal Worthington, Groth,Terry York, Gustafson, Bill Maxey took the Blvd. through much of its growth during the 1960's, '70's and '80's. For Example, DeLillo Chevrolet has been family owned and operated since 1960 and HB Chrysler / Jeep has been family owned and operated since 1966. They are local people serving local people from the same locations in Huntington Beach for well over 50 Years. ir 1 k y 1 - Product and Economy Stimulates $35 million of New Construction The Huntington Beach Auto Dealers Association,their Beach Blvd of Cars Brand and their now, 3 year old, Blvd of Cars Store at Bella Terra Shopping Mall, is 10 New Car Dealers strong and serves about 1,000 consumers per month. Car Pros Kia joined us last year and a New Hyundai Store in schedule for 2014 on the Blvd. The recent merger of the Chrysler, Dodge, Jeep franchises added another almost $3 million of property value as well.We are about to complete the initial year of operation of the New Reader Board Sign and that total investment exceeded$1.5 million. ;4 The complete re-build of the Toyota of Huntington Beach franchise ($18 million), the significant expansion of the Norm Reeves Honda Super Store location ($4.7 - million), the recently re-build of the OC Mazda (HB Mazda) store ($2.2 million),the i 1 e just completed almost complete rebuild of the Surf City Nissan Store($2 million),the to be completed this month of the renovated DeLillo Chevrolet Store,the early 2014 remodel of the Huntington Beach Ford Store and rebuild of the new combined Rick 7 Evans Chrysler, Dodge,Jeep/Ram facility - adds up to huge new investments by the ten-dealer member Association through their individual dealer members. Our dealers have continually led in their Make and Model franchise regional business groups. 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 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 awards and Customer Satisfaction Achievements regularly. Hands-on and bottom line local business leadership models,combine with a level community consciousness,and a spirit of giving back combine to form the best description of these ten business owners and their managers.We are: Ten New Car dealers acting as one—when it comes to marketing,community and investment. � 1 , � BELLA T[ItR,4 BELLA TERRA 4th Year of Service at Bella Terra Our current Caltrans Permit requires The Huntington Beach Auto Dealers Association's Reader Board Sign business model to be tied to a"retail" presence in and about the location of their Sign.At significant expense (details in financial report),the Association employs two part-time representatives with payroll,workers comp, insurance considerations, site signage, equipment, etc. Currently, labor, rent and office operation represents almost 40% of the total BID Annual Budget. We operate the Concierge Desk located at the Amphitheater by the Century Theatres. Now, the Blvd of Cars Store plays a dual role; host for the Mall attending to scores of daily customer-visitors looking for everything from the nearest bathroom to specific individual tenant store locations and... performs the core role of Blvd of Cars Store & Information Center. At the Car Store -the Dealer operate a facility that cultivates interest in transportation products offered by the Member Dealers.This includes electronic hook up to each dealer member through the Internet and web sites. Staff also deals with walk-up clients wanting automotive or transportation information. Literature for each Dealer is on display, telephone lines exist for instant access to individual dealers for any client questions or needs. Shuttle Service is provided by each dealer to and from Bella Terra.Also,arrangements can be made to test drive vehicles. Average number of store visits per month 2012 was almost 1,000 people per month; 377 people per month average for 2010,and 559 people per month average for 2011. In with the New! Resolution 2013-37 Current Dealer : ,. of 1 , , The Huntington Beach Auto Dealers • ' Association acting as Managers of The Huntington Beach Auto Dealers Business Improvement District include: HB Dodge, Chrysler Del-illo Chevrolet ' Jeep Ram 714-847-6087 714-841-3999 www.delillo.com ' www.hbchryslerjeep.com Huntington Beach Ford Huntington Beach 714-842-6611 Mitsubishi www.huntingtonbeachford.com 888-780-9895 www.hbmitsu.com McKenna VW Huntington Beach 866-925-0602 �.• . Norm Reeves Honda www.mckennavolkswagen.com Superstore 714-842-5431 Toyota of Huntington Beach •, • ,. , , www.normreeveshb.com 714-847-8555 • r • r www.toyotaofhb.com Huntington Beach Mazda 714-848-7739 Car Pros Kia of Huntington Beach www.ocmazda.com (714) 274-6176 .�� 1 • �, www.orangecountykia.com • ,• , 1 1 Surf City Nissan of Huntington Beach Beach Blvd. of Cars Web Site: 714-500-6000 www.BeachBlvdofCars.com www.surfcitynissan.com September 18, 2013 December 18, 2013 March 19 ,2014 : , • CARS ' June 18, 2014 September 17, 2014 December 17 ,2014 7 � 1 1 Like many makes and models of cars over the past 100 years...they were designed for the times, met the needs of the people they served and performed well for the level of technology developed to that stage in the personal transportation industry. No different is the story with Digital Reader Board Signs. Then and now,the Edsel-the Cobra,the Nova,the Camaro,etc. no different is the relationship between what the Auto Dealers pioneered with 20 years ago or the super spectacular statement they make today with the Digital Reader Board technology launched this year adjacent to Bella Terra on the 405 near Beach Blvd. And,the City of Huntington Beach and their many, many non profits enjoy use of the Reader Board Sign at No Cost. Lzm H6 DOWNTOWN PRESENTS ---April 18th, 2013- -- IN ,,d ., I L „n /. 6PM-9PM NATIONAL POLCE WEEK � - • � 5PM-9PM _ MAY 14TH IS POLICE APPRECIATION ARTWALK AT SURF CITY NIGHTS • Cite&6.4 - SCMEDUWDETMu :Ww HSDOwHTOWN.Cou. www.surfeityDights.com - H U N T I N G T O N BEACH 11 UNTINGTON BEACH HUNT INGTON REACH BLVD OF CARS BLVD OF CARS BLVD OF CARS c Resoltui n 20 - BID FINANCIAL REVENUE: Approved Annual Budget Business Improvement Assessment $ 172,800.00` Total Revenue $ 172,800.00 Total Revenue $ 172,800.00 EXPENSES: City Charges $ 9,624.12 Promotional 65,000.00 Sign Utilities,Maintenance and Insurance 34.000.00 Car Store 80,885.30 Total Expenses $ 189,509.42 Budgeted Revenue Less Expenses (16,709.42) Previous Year Carryover/Reserve 17,000.00 Year End Reserve 290.58 Current Monthly Assessment $ 1,440.00 per Dealer Prepared by: William S. Rea,CPA Rea, Brace &Associates Ten Dealers Paying Assessments 9 Resolution 2013-37 The Huntin ton Beach D ER A IATI N 1 . 00 New Vehicle Sales $374,814,000 $394,000,000 $475,000,000 $47,500,000 Used Vehicle Sales $136,983,000 $158,000,000 $161,000,000 $16,100,000 Service and Parts Dept.Sales $96,139,000 $99,000,000 $101,500,000 $10,100,000 Total Dollar Sales $608,036,000 $651,000,000 $765,900,000 $76,590,000 Total New Units 11,935 12,200 14,690 1,469 Total Used Units 7,315 7,000 6,500 650 Total Vehides Sold 19,250 19,200 21,190 2,190 Total Full Time Employees 935 900 910 94 Total Part Time Employees 55 50 50 5 Total Employees "0 950 960 96 Total Wages $50,424,000 $48,100,010 $50,200,000 $5,020,000 Advertising $6,622,000 $7,300,000 $8,350,000 $835,000 Other Products&Services $16,280,000 $15,700,000 $17,000,000 $1,700,000 from CA Business Total Local and Statewide Expenses $22,902,000 $23,000,000 $25,350,000 $2,535,000 Total State Payroll Taxes $1,188,000 $2,870,000 $3,000,000 $300,000 Total Federal Payroll Taxes $12,375,000 $12,000,000 $12,600,000 $1,260,000 Total Employee Taxes $13,563,000 $14,870,000 $15,600,000 $1,560,000 Sales Tax Collected $37,290,000 $39,100,000 $44,500,000 $4,450,000 Real Estate Taxes $1,188,000 $1,325,560 $1,400,000 $140,000 Total Taxes(Paid or Collected) $38,478,000 $50,233,850 $45,900,000 $4,590,000 Total Tax Revenue fr Dealers in HB $52,041,000 $65,103,850 $61,500,000 $6,150,000 Total Tax Revenue To $4,847,700 $5,083,000 $5,785,000 $5,785,000 Huntington Beach State and Local Business $396,000 5360,000 5390,000 539,000 Taxes and Fees Charitable Contributions $385,000 $345,000 $352,000 $35,200 II ' 1ME rnazm © Annual Report Jeep 20131111111111 INI 641AX TO • 2014 HUNTINGTON BEACH ' BLVD OF CARS Auto Dealers Go "Green" with New Reader Board Sign I at proposal including: (Partial List) BELLA TERRA • New Huntington Beach Auto Dealers Reader Board Sign is fully integrated into the existing Bella Terra landscape including colors, materials,and environmental elements. • New 20mm LED pixels are 87%more energy-efficient than the original 33mm LED pixels. • Original Overall Sign Square Footage= 1679 sf • New Overall Sign Square Footage= 1679 sf • Original Reader Board Sign at 85' Overall Height. • New Reader Board Sign at 85' Overall Height. • Aluminum components use in construction of the New Sign -very environmentally friendly.090 gauge. M. i �� r AV Exhibit "B" - � t Resolution 2013 37 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT SUMMARY BUDGET WORKSHEETS OCTOBER 1,2013 TO SEPTEMBER 30,2014 Approved Annual Budget REVENUE Business Improvement Assessment $ 172,800.00 Total Revenue 172,800.00 EXPENSES City Charges 9,624.12 Promotional 65,000.00 Sign Utilities, Maintenance and Insurance 34,000.00 Car Store 80,885.30 Total Expenses 189,509.42 Budgeted Revenue Less Expenses (16,709.42) Previous Year Carryover/Reserve 17,000.00 Year End Reserve $ 290.58 Monthly Dealer Assessment $ 1,440.00 * Ten Dealers Paying Assessments 2013-2014 Bud 1,440 Assessment Page 1 Resolution 2013-37 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 WV 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 Res. No. 2013-37 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 5, 2013 by the following vote: AYES: Sullivan, Hardy, Harper, Boardman ,Carchio, Shaw, Katapodis NOES: None ABSENT: None ABSTAIN: None e � Cit lerk and ex-officio 6ferk of the City Council of the City of Huntington Beach, California