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Home My WebLink AboutAUTO DEALERS BUSINESS IMPROVEMENT DISTRICT (BID) 2005-2006 A Council/Agency Meeting Held: E C E D Deferred/Continued to: 2006 AUG-g A 8: 28 ❑Approved O Conditionally Approved ❑ Denied City Clerk's Signature G i I`tip Gt.EI-Iz Council Meeting Date: August 21, 2006 Department ID Number: HUMIM30N EACH CITY OF HUNTINGTON BEACH :,j REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONOVABLE .MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PEN LOPff CULBRETH-G T, D A, ITY ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: Approve Huntington Beach Auto Dealers Business Improvement District 2005-2006 Annual Report, Adopt Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2006-2007 and Schedule Public Hearing for September 18, 2006' _ Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: On September 8, 1992 the City Council approved Ordinance No 3175 to establish the Huntington Beach Auto Dealers Business Improvement District (BID) as a method of financing for, construction costs, operation, and maintenance of the electronic reader board sign and other promotional programs allowed under the law. The'Sfate of California Parking and Business Improvement Law of 1989 requires an Annual Report be filed for each fiscal year, a Resolution of Intention be passed to levy an assessment for the next fiscal year, and a public hearing date be set. Funding Source: Not applicable Recommended Action: Motion to: 1. Approve the Huntington Beach Auto Dealers Business Improvement District Annual Report for FY 2005-2006. 2. Adopt City Council Resolution No. �� -5 , a Resolution of Intention of the City of Huntington Beach to levy an assessment for the Huntington Beach -Auto Dealers Business Improvement District for fiscal year 2006-2007. 3. Direct the City Clerk to schedule a public hearing to be held on September 18, 2006 and send copies of the Resolution of Intention, BID Boundary Map, and assessment formula to each business to be assessed. Alternative Action(s): 1. Return the 2005-2006 Annual Report of the Huntington Beach Auto Dealers Business Improvement District to the Huntington Beach Auto Dealers Association for additional information- 2- Deny the request to approve the Resolution of Intention. REQUEST FOR ACTION MEETING DATE: August 21, 2006 DEPARTMENT ID NUMBER: ED 06-30 Analysis: At the request of the Huntington Beach Auto Dealers Association, the City Council formed the Auto Dealers Business Improvement District (BID) in 1992.to fund the Dealers' obligation to operate and maintain the electronic reader board sign that is located just off the 405-freeway. Under the Business Improvement District state law, the Auto Dealers raise additional monies to market and operate other programs to enhance their BID: This is the annual renewal of the Auto Dealers Business Improvement District. Dealer assessments for each dealers are $1,425 per month; $725 for reader board sign maintenance and operating costs, plus $700 to repay the $474,000 loan from the Redevelopment Agency for the upgrade of the reader board sign. The City Council approved the $474,000 loan at its meeting of May 3, 2004, and the upgraded electronic sign has been in operation since January, 2005. Environmental Status: Not applicable Attachmentfs): City Clerk's Page Number No. Description 1. Resolution of intention to Levy Assessment for FY 20000o 7 - L? Exhibit A - Huntington Beach Auto Dealers BID 2005-06 Annual Report Exhibit B-1 -Huntington Beach Boulevard of Cars Boundary Map Exhibit B-2 -Huntington Beach Automobile Dealers Members List Exhibit B-3 - Huntington Beach Auto Dealers BID 2006-2007 Fiscal Year Assessments G'Uim\BIDs\Auto Dealers BIDWuto RenewalVca auto intent reso 2006.doc -2- 8/3/2006 4:26 PM ATTACHMENT::I] INTENTIONALLY LEFT BLAND RESOLUTION NO. 2 0 0 6—5 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF 1 IIJNTINGTON BEACH DECLARING THE CITY'S INTENTION TO 1,[-N Y AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH Al J'I•U DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2006-2007 W I II iItL;AS, the Parking and Business Improvement Area Law of 1989, codified at Streets em(t//i,L,htrcr.vs Coele § 36500, et seq. (the "Act") authorizes cities to establish parking and business inrprovenrent areas for the purpose of imposing benefit assessments on businesses for certain purposes; and The (Jty Council has formed a business improvement area, known as the Huntington Beach Atito I)ealers Association Business Improvement District(the "District"), by the passage of )rdinancc 3175 on September 8, 1992. The time has come to continue the existence of the District fir Iiscal year 2006-2007 by levying assessments on those businesses that benefit from the iniprovernends constructed; and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2005-1-006, ("Annual Report")which sets forth the amount and basis of levying the assessnicnt Ior Fiscal Year 2006-2007. NOW, 'ITIE;REFORE,the City Council of the City of Huntington Beach does hereby rrsolvr, drterntinc and find as follows: SI-('TION 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 relerencc, which includes a proposed budget for Fiscal Year 2006-2007 and a description of the improvements and activities to be provided for Fiscal Year 2006-2007. tiF(: I'l(JN 2. The City Council hereby declares its intent'to levy and collect assessments within the District for Fiscal Year 2006-2007. The levy is to apply to small businesses classified by the City of I hintington 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-1 and listed in li'xhibit B-2, in the amounts set forth on Exhibit B-3, which exhibits are incorporated herein by rel'crence. SFCl'ION 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, Sl_?CTION 4. A public hearing shall be held before the City Council on September -18, 2006 ;it f:00 p.nt., or as soon thereafter as this matter may be heard, in the Council Chambers of the City 1-1.111,2000 N1.1in Street, Huntington Beach, California, at which time the Council will hear all interested persons for or against levying of the assessment, and the famishing of specified types of ui.awt.i t ttl 1 Reso. No. 2006-52 itnrrovcm►cnts or activities. Protests may be made orally or in writing;but, if written, shall be filed witdt tl►e City Clerk at or before the time fixed for the hearing and contain sufficient documentation to vcri.ly business ownership and validate the particular protest. If written protests are received by the owns rs 0 businesses within the District,which will pay 50% or more of the total assessments to be levied, tit) I'urther proceedings to levy the proposed assessment shall be taken for a period of one year Trots the date of the finding of a majority protest by the City Council. If the majority protest is only against the I'urnishing of a specified type or types of improvements or activity within the District, those tyres of improvements or activities shall be eliminated. SI{CTION 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 clays before the public hearing. tile,(;TION 6. Further information regarding the proposed business improvement district stay be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, c.'ali1oniia 92648; telephone (714) 536-5542; or from the Huntington Beach Auto Dealers Association, Inc., P.O. Box 2700, Huntington Beach, CA 92648; telephone (949) 831-3443. S CTION 7. The City Clerk shall mail a complete.copy of this resolution of intention by lirst-class inaiI to each business owner in this area within seven days after the Council's adoption of this resoluli0h. Sl:( "1'!ON 8. This resolution shall take effect immediately upon adoption. PASSF,I) AND ADOPTED by the City Council of the City of Huntington Beach at a regular ntcrting thcrcol'held on the 21 st day of August , 200 6 Mayor l%*VlFWF,I) AND APPROVED: APPROVED AS TO FORM: (`'ity .\dntJtnstralor fty Attorney INITIATED AND APPROVED: Director of Economic Development Annual Report E XHIBIT A INTENTIONALLY LEFT LANK Exhi HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2005-2006 ANNUAL REPORT HUNTINGTON BEACH AUTO DEALERS ASSOCIATION Business improvement District OPERATING STATEMENT FOR: June 2006 Balance forward From 2004-2005 38,240.06 Fiscal Year is: October 1 -September 30 INCOME June-06. Fiscal 2006-2006 YTD Dealer Assessments 6,187.50 73,851.75 BID Interest - BID Misc Income - TOTAL INCOME' 6,187.50 73,851.75. EXPENSES Administrative Expenses - Adverdsing 1,395.00 Community Relations Projects 18,425.00 Electricity 1,380.70 8,502.27 EMI Maintenance 950.00 8,550.00 EMI Program 480.00 4,320.00 Insurance/Taxes 2,899.00 Office Supplies/Printing 85.65 Outside Services 1,716.68 13,304.44 Phone 33.19 297.21 Signs and Banners 215.51 TOTAL EXPENSES 4,560.67 57,994.08 Income Less Expenses 9,626.93 15,857.67 Cash in Rank as of: June 2006 54 097.73 BUDGET PROPOSAL FOR THE PERIOD OCTOBER 1, 2006 TO SEPTEMBER 3012007 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IN[PROVEMENT DISTRICT REVENUE Dealer Assessments(Net) $94,743 EXPENSES Community Relations,Charitable& School Support Projects $37,500 Electricity 16,800 Insurance/Taxes 7,300 Maintenance for freeway sign 11,400 Outside Services 13,200 Office Supplies 600 Program Service for sign 5,760 Phone 480 Miscellaneous 600 TOTAL EXPENSES $94,190 INCOME EXCEEDS EXPENSES $553 SUMMARY OF SIGNIFICANT BUDGET ASSUMPTIONS FOR THIS BUDGET PROPOSAL NOTE 1 DEALER ASSESSMENTS--Dealer Assessments are based on$725 per month for each of eleven dealer members. The total assessment income is net after a 1%city administrative charge. NOTE 2 OTHER EXPENSES--All expenses are based on estimates derived from current and previous months' and years activities. INTENTIONALLY LLY LEFT BLANK Boundary Map EXHIBIT B - 1 EXHIBIT B-1 on:Bea-chit-:ifitin§ : - = BLVD of CARS Re"Boarde- 06' Edinger Heil Dodge 0 Chrysler-jeep &Hurnmer Q Mazda _ Mitsubishi :Wavier= :-N6SaE3 - Slater Talbert Chevrolet B Ford Volkswagen Ellis - Saturn Toyota m Garfield -Honda 00 W N t� - Oo s - Member List Exhibit B-1 Huntington Beach Automobile Dealers ❑ Steve Brown Heritage Mazda ❑ Clay James/Larry Smith 16800 Beach Boulevard Huntington Beach Dodge Huntington Beach, CA 92647 16555 Beach Boulevard (714) 848-7739 FAX 847-1265 Huntington Beach, CA 92647 (714) 847-5515 Ext. 232 ❑ Tom Croxton/Jim Mulvaney FAX 596-0230 Huntington Beach Mitsubishi 16751 Beach Blvd. ❑ Mike Stout Huntington Beach, CA 92647 Saturn of Huntington Beach (714) 375-9493 Fax 842-1563 C/O P.O. Box 15205 Santa Ana, CA 92735 ❑ Dave DeLillo/Bill Demarest (18801 Beach Boulevard DeLillo Chevrolet Huntington Beach, CA 92648 18211 Beach Boulevard (714) 841-9828 FAX 842-8499) Huntington Beach, CA 92647 (714) 847-6087 FAX 847-6721 ❑ Danny McKenna McKenna Motors Huntington Beach ❑ Rick Evans/Ross Helman 18711 Beach Blvd. Huntington Beach Chrysler/Jeep Huntington Beach, CA 92648 16710 Beach Boulevard 842-2000 FAX 841-7819 Huntington Beach, CA 92647 (714) 841-3999, ext. 221 ❑ Dan Klawitter/John Dalpe FAX 842-2903/841-9993 Norm Reeves Honda 19131 Beach Boulevard ❑ Brian Wood/Auzzy Shoukri Huntington Beach, CA 92648 Power Ford (714) 963-1959 FAX 375-9783 18255 Beach Boulevard Huntington Beach, CA 92648 ❑ Bob Miller/Dennis Prado (714) 842-6611 FAX 848-3481 Toyota of Huntington Beach 18881 Beach Boulevard ❑ Douglas Spedding/Pat Finely Huntington Beach, CA 92648 Douglas Nissan (714) 847-8555 FAX 847-1105 17331 Beach Boulevard Huntington Beach, CA 92647 ❑ Jim Upp (714) 842-6666 FAX 375-0076 Executive Director Huntington Beach Auto Dealers Assoc. 28141 Bluebell Dr. Laguna Niguel, CA 92677-7067 (949) 831-3443 2006-2007 Assessments EXHIBIT B-3 Huntington Beach Auto Dealers Business Improvement District 2006-2007 Fiscal Year Assessments Monthly Assessment for October 2006—September 2007 $725.00 Monthly Assessment for Loan Repayment $700.00 TOTAL MONTHLY ASSESSMENT OF EACH DEALER FOR FY 2006-2007 $1425.00 Res. No. 2006-52 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 an regular meeting thereof held on the 21st day of July, 2006 by the following vote: AYES: Bohr, Green, Coerper, Sullivan, Hardy, Hansen, Cook NOES: None ABSENT: None ' ABSTAIN: None City Yerk and ex-officio C rk of the City Council of the City of Huntington Beach, California