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Home My WebLink AboutCity Council - 2014-66 RESOLUTION NO. 2014-66 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 2014-2015 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 2014-2015 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 2013-2014, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2014-2015. On August 4, 2014 , the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2014-2015 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 2014-2015 and a description of the improvements and activities to be provided for Fiscal Year 2014-2015. 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 2014-2015 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 ($1,440.00) per month as set forth on Exhibit B, and incorporated herein by reference. SECTION 3. The assessments collected shall be used to cover costs to operate, upgrade and maintain an electronic reader board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue and other promotional and advertising activities. 14-4285/110720 1 Resolution No. 2014-66 SECTION 4. This resolution shall take effect on October 1, 2014. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 2nd day of September , 2014. M iDkefk� Mayor REVIE ND APPROVED: APP OVED AS TO FORM: i Manager City Attorney , v 14-4285/110720 2 Exhibit "A" - Reso. 2014-66 On Iu M�. s Fxk. 19�i11�" Nii, w l °" i - I �I IVIPI�P�� 1{ V tiA IIII � I a II liliRjNjii�il torNilt$Uu"^c w , ^ r' OP d n � - �`" New Car Sales have increased over$155 000.000(million)since sign.This year,2014 marks the 24th anniversary of the association - we were+.allowed'to operate our Dig!tal Sign at Bella Terra..Used and our effort to create a 21st century spectacular new digital reader th,l D8r'saalas grew by almost$34,000,000(million)in the same period board sign for the community! = .pf jjjrle,TbW dollar sales including parts and service,body work, With the recent dedication of me new, The Huntington Beach Auto Dealers Association is dedicated to serving the New 4 65 foot tall wedge-shaped, ll hod ` Car Dealer Members located on Beach Blvd.They stove to promote their collective i �4*dealers exploded to$837,000,000(million)from ' Iwo sided,1,200 square foot digital faced sign the Auto Dealers business$access„provide an effective marketing message,and assist with ll ggg,(Itf irul�ioll topping a 27%growth made possible by the Association are able to dedicate new and greatly needed revenue in f H8 Aum Dealers.Spectacular Digital Sign. Incidentally,total wages lumber merchandise the business and financial interest of botH the celestial Woes bypmvid ngtfie community they serve with a vane y of meaningful programs.The Association works to protect and expand their business segment in paid gyp property tax,Payroll taxes and net sales fax to our community Beach Blvd.of Cars and the City of Huntington Beach.Srortlng _ so all grew proportionally to the performance noted above. non profits is a major result as well seder serve a a ba able to provide leadership and focus pe that both the members they be our community remain healthy and prosperous. .'.. The Huntington Beach Auto Dealers Association was formed on We are experiencing significant new sales and sales tax generadori August 15,1990 out of the desire to bring new car dealers on Beach as a result of the joint effort between the oty and the dealer network Blvd to join forces develop cooperative community and marketing The ten dealer network dots the landscape along Beach Bivd.,Surf " a5' plans and better serve their industry and the City of Huntington W . p ry y City, These msnpanents have worked together to insure all .Beach...:. t, parfies COrillnuilly',4f message supporting a unified organization On September 8,1992 the Huntington Beach City Council approved working fogether afigt common goals Our new reader board sign ordinance no,3175 establishing the Huntington Beach Auto Dealers adds strength beauty and character to our message and helps Business Improvement District(BID) as a method of financing increase business for all parties involved particularly in the absence and mamtanmg their then,state of the art digital reader board of us not having tat Auto Malt If " H BI 1 IIil xl i4 +� 7 w. ,w....m a e 1 $ j in New C i � Today,The Huntington BeachAuto Dealers Association,their Beach Blvd of Cars national,regional and local economy this group of 10 entrepreneurs have brand and their new,exceeding expectation Blvd of Cars Store at Bella Terra pushed forward to protect expand..and retain their business.interest in Shopping Mall is 10 New Car Dealers strong.With the arrival of a substantial Huntington Beach,Surf City USA, Mustangs,Corvettes,Chargers,Continentals Lincoln,Malibu,Thunderbird,I lummers a corporate partner in the form of Car Pros and their new KIA Store at the former �� , Our dealers have.continually led in their Make and Model franchise areas. Py nouth,Honda Toyota and even the Dodge Dart-dotted N early Beach Blvd.landscape. ,a ri i,i, Saturn location fast year and the recent merger of the Chrysler Dodge Jeep` Ford's growth is monumental since they opened five years ago,Kla continues to franchises,the future is bright break records even during their inaugural and subsequent year with the Beach Names like Cal Worthington,Grath,Terry York Gustafson,Bill Maxey took the Blvd.through ..v r h With the compiatinn of the Digital Reader Board Sign($15 million capita)cost). Blvd of Cars.Chrysler has locked down State-wide and national awards for much of itR grawth during the 1960's,70 s and'86's.For Example DeUilo Chevrolet has s' -.... � '. . the complete re-build of the Toyota of Huntington Beach franchise($18 million), sales performance over along period of time and the other brands win industry been family owned andoperated since 1960 and HB Chrysler/Jeep has been family r the significant expansion of the Norm Reeves Honda Superstore location($4.7 awards,Sales performance awards and Customer Satisfaction Achievements owned and operated since 1966 They are local people sowing local people from the same �,_. .. ""- million)the recent re-bmld of the OC Mazda(HB Mazda)store($2.2 million), regularly. . the recently complete rebuild of the Surf City Nissan Store($2 million),the Hands-on and bottom line local business leadership models,combine with a '- toeations in Huntington Beach for well over 40 Years £- renovated DeLillo Chevrolet Stare($1 million),the soon to be rebuilt Huntington ' - level community consciousness,and a spirit of giving back combine to form Beach Ford Store and rebuild of the new combined Rick Evans Chrysler,Dodge,. _ - the best description of these ten business owners and their managers.We are: Jeep/ilain facility-these significant and on-going financial commitments Ten New Car dealers acting as one—when it comes to marketing community -; further demonstrate the continuing confidence in the automotive industry and Investment. held by our members. In spite of fairly harsh economic downtown In the'.. - ;.x may' i515 e , v : „k t r �. , Iei' The election certified Executive a M Committee of the Board of Directors ` Continuing the story of CalTrans.The Huntington.Beach Auto Dealers cultivates interest in transportation products offered by the Member Dealers. of the Association also sit as the BID Association's Reader Board Sign agreed to open a"retail'presence in and This includes electronic hook up to each dealer member through the Intemet Board Members and they are: °' - about the location of their original Sign In 2010.At significant expense(details and web sites.Staff also deals with walk-up clients wanting automotive or in financial report,the Association employs three part-time representatives transportation informalfon.Literature for each Dealer is on display,telephone Bob Miller Non voting Jeep Dodge,Chrysler Dei dlo Chevrolet 6087 with payroll,workers Camp,insurance considerations,site signage,equipment, lines exist for instant access to individual dealers for any client questions or. (Toyota of Huntington Beach) Jeep Ram www,de7 o.co 9 William Rea, 714 841-3999 www,deiillo.com etc Currently,War,rival will office operation represents almost 40%of the needs.Shuttle Service is provided by each,dealer to and from Bella Terra.Also, acts as President CPA-Financial www.hbehryslerieep.com Paul Conan David Garofalo Huntin Huntington Beach Ford fatal BIDAnrwtal Budget arrangements can be made to test drive vehicles.Average number of store gton Beach 714-B42-6611 visits par month(1'tD),2014 is about 754 people per month;377 people per (Norm Reeves Honda Super Store) Administration Mdsuhishi www,huntinglunbeachford cum The Association"negotiated with Bella Terra Mall the use of their Concierge acts as Vice President - 888.780.9895` month fluemge for 2010 and 559 people per month average for 2011, - wwor hAmitsu,com McKenna VW Huntington Beach Desk located at the Amphitheater by the Century Theatres,Now,the Blvd of .- Bill Demareat = 866-925-0602 DeLillo Chevrolet acts as CFO Norm Beeves Honda www,mckennavolkswagen com Cars Store plays a dual role host for the Mall adendNg to scores of daily ( ) customer visitors bukr for everything from the ne (bathroom to specific _ u` Supersttare n9 ry 9 714-842-5433 Toyota of Huntington Beach Individual tenant store locations and.,performs the We role of Blvd of Cars The Huntington Beach Dealers Business Improvement District meets the www.norin evi shb.nnm 714-84N555 Stare'$lntormaibd Center.At the Car Store-the Dealer operate a facility duat " t � 4 �� third Wednesday of each quarter at Toyota of Huntington Baaah,1B881 g www.toyataofhb.com vt Beach Blvd Huntngton Beach,CA in the upstairs Confer6trae Room at 8 30 Huntington Beach Mazda am.The specific dates for the 2014 2015 Fiscal Period am.. 714-848-7739 Car Pros Kja of Huntington Beach ' www.ocmazda.com (714)274-6176 Surf City Nissan of www.oranglecountykia.com all.v September 17,2014 ingtan Beach December 17,2014 March 18,2015 June 17,2015 q9, ' e September 16,2015 t i r r December 16,2015 7 �,ryly N w i 5l rrww�wruuwrwrwr� OEM t Beach ; R Qrovod I dnal Budget MONTHLY DEALER AS "' -a^ °° $940.00 Business Improvement Assessment ��4; �,3I,,M,t,,,s,;,;, $112,800.00* Total Revenue $112,800.00 T.OwMyfwwf�rwlwew ..� - ". EXPENSES: ! 1. City Charges $4,812.06 v AF Promotional Sign Utilities,Maintenance and Insurance 27,36z9a y- Car Store 79,820.00 ` Total Expenses $112,020.00 two Budgeted Revenue Less Expenses $780.00 ac Previous Year Carryover/Reserve $1,000.00 Year End Reserve $1,780.00 9 8 Huntington M The Huntington,Beach AU to Dealers Association Performance with their Digital Sign: wd zM'x#k J kyy1$4S�f h# f AF 7rra�;, d �,h;Tp14 Used Vehicle Sales $530,16,000 . $53,016,000 S158,000,000 $161,000,000 $170,860,000 $17,066000 , ,Newh 5374,814A09 $394,000,000 $475,000,000 - z _ Semce and Parts Dept Sales $96,139A00 $99000000'.. $101,500,000 $105260,000 Total Total New Units 11,935 12,200 14,690 15540 1,S54 d `. � 7,000 6,500 6,460 646 Total Used Units 7,315 pH nlf ##a A 111, sl v F s 1 $,� To4I 1tchkiat$Pin i9,250 191200 21,190 22080 2,200 s1�� Rsy `ti s'"4 ai74y S" toy S L ,tibbcc..+` B fFtx'1„Y s 57$1s A4 $ aF g�gS; focal Full Time Employees 935 9U0 970 910 91 k SAS 1'fr �' �MINI yf ,? k 'R ^Mil a}I _ 4wq ' rotal Pa it 1 me Employees 55 50 50 60 6 a,{s a 1 ,1a x#7f+ 1n°a,'lsT i#F7E• oSa`% '§'f� aysf «....u- _ € T oral Erhployeet 490- 950 ago We 9T S Total Woo" S$D,424 oDD $40,10Qii111� $S0,200000 $51,230,aoD $5,723,400 .W�., .'r,"'"" 3�. *North FaceB01:826,100 Otherguq Prod $6621,000 $15,700,00 $83500,00 $17,700,0 $1,7700 rs IO[her Products&Services $16,180,000 $15700,000 $77,000pUU $17,700,000 $1,770,D00 *SCUt1L Marx WE 918,654 from CA Business *Audited TIaflic COMM ffaral Loral add Sratew., Llses Sxz,9ox,000 $2100{rfQ $25 3MIND $27,200,%04 S2,720400 Traffic Audit Bureau Total State Payroll Taxes $1,788,W0 $2,870,000 $3,000,000 S3,D70,000 $307000 22 I Total Federal Payroll Taxes $12,375,000 $12D00,000 $12,600,000 $136B0,000 $1368,000 #IIoPFoyasTa! 33,543,04A $14,470,000 $15,600,800 $10r750,000 $1,675,0D tl 'Sales Tax Collected $37,19U,000 $39,100,000 $44,500,000 $50,210,000 $5,021,000 Mechanical Proportion&ftale Machaelcal skm Real Estate Taxes.. t$1.188,000 $1,325,560 $1,400,000 $1,410,000 $141,000 '. -14'=1' -VW-bWU"ihxw): fotalTarzufPaid.;,v y64M990 $50,233,050 $45,900,�0 $51,620,000 $$,162,D88 -Ggirel Re.Wueod for this sign A, 84W.8-9W a IW'raga 47ah x480. Ixsrt 3d4)Tax0W46usTr1l fp ) -sageeredcapyAra4(hx`d); _ g-5$2 Dtl1hQ0A $45,iD3,%S0 $fi1,S00,0M $65,370,000 $6,537,004 � Actual Slsel a-1ra-xa-lr4^�1ia^=Vscak =;ozalTaxRevaoueTu tn%4?.T88 55,0%3,Dpq l� S%785,0� �*¢273,p00 $6S2r v v udr0,91on Reach "VlawablNLlve lb xw}:32,5"x93' State and L IBuyness $396,000 $360,000 $390,000 $450,000 $45,000 -Suggested Copy Area(h x w):32.5'x 33' 14A—CPl-40D 'Taxes and Fees 10 a08 Na-41zv aywgivtxaso rmwi a) trtata66 llr!uG"8t ,uMilllVluh,. $343,008 $352, $300,000 $*ODD 11 AN w u A L 2014 - 2015 R E P O R T I�c„ uto Dealers G cc " with Green �roposal nclutiQng Partial List) �� Ruder Board Sign � . p • 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. y • Original Overall Sign Square Footage=1679 st V • rOverall ag q l 1t NTINGT a A 11 • Ogyal Reader Board Sign at 5 OveralHeight. II I 11 I.\ (') F C, 1t S • New Reader Beard Sign at 85'Overall Height. III II , • Aluminum components use in construction of the New Sign-very environmentally friend ly.090 gauge. uX V'14"i I li ^' 3s--,' 4.h,• r I I w nsrn w....v.': r..,.x. i- . ,...,.. ...,, ,. - __- — i'• i 11 . 1 � .1 1 Exhibit "B" - Reso. 2014-66 Isis ved nl!u�IIIIIIIIiiilUd = - - �xalmu, ' uuu� MOHMY DEALER ASSESSMENT Business Improvement Assessment Total RevenueS 112, 00.00 WOPOONINii 1141ingVrs91VInll .. uu�IlWu�sV� w e;h�IVIIIII �Rh'��Ig�I��W.a ,a , 4,812.06 ftmotional Sign Wlities,Mainteruvree and I . 27,387,94 I, �I�I�IIIHiI^Ist Car Stork 79,820.00 �� fe Expenses S 112, .0e I I I Budgeted Revenue Less Expenses $780-00 Previous,Year Carryover/Reserve Carryover/Reserve . , S 1,040.00 Year End Reserve _ S 1,7Ba.00 Res. No. 2014-66 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 2, 2014 by the following vote: AYES: Katapodis, Hardy, Shaw, Harper, Boardman, Sullivan, Carchio NOES: None ABSENT: None ABSTAIN: None City fierk and ex-officio Ferk of the City Council of the City of Huntington Beach, California