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HomeMy WebLinkAboutFY 2009-2010 Huntington Beach Auto Dealers Business Improvem i Council/Agency Meeting Held: Deferred/Continued to: )�Appr ve ❑ Conditionally Approved ❑ Denied Cit lerk' ignatur Council Meeting Date: 9/21/2009 Department ID Number: ED 09-57 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COU L MEMBERS SUBMITTED BY: FRED A. WILSON, EXECUTIVE DIR R/ CITY ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR ECONOMIC DEVELOPMENT ; SUBJECT: Conduct Public Hearing and Adopt resolution approving an annual assessment within the Huntington Beach Auto Dealers Association Business Improvement District for fiscal year 2009-2010. Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: On August 17, 2009, City Council approved the Resolution of Intention to No. 2009-47 to levy an assessment for the Huntington Beach Auto Dealers Business Improvement District for Fiscal Year 2009/10 and authorized the City Clerk to schedule a public hearing. City Council will conduct a public hearing to consider a resolution to approve the annual assessment for the 2009/10 fiscal year. Funding Source: Revenues and expenses will be included in the 2009/10 Huntington Beach Auto Dealers Business Improvement District Budget (Fund 701). Recommended Action: Motion to: 1. Conduct the Public Hearing. 2. Adopt City Council Resolution No. 2009- 51 , 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 2009- 2010. Alternative Action(s): 1. Deny the request to approve the Resolution; or 2. Modify elements of the Annual Report, such as: the proposed assessments, activities or improvements to be funded. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 9/21/2009 DEPARTMENT ID NUMBER: ED 09-57 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 located just off the 405-freeway and to fund other promotional activities that benefit the BID. The Auto Dealer BID Board of Directors approved the assessment formula at their July 15, 2009 meeting. Each member of the BID will be assessed $1,445. As set forth in the Annual Report and Budget, the BID will utilize the assessments for promotional activities and related administrative items. In order for the City to levy the BID assessment each fiscal year, the City Council must conduct a public hearing before adopting a resolution confirming the coming year's assessments. On August 17, 2009, the City Council adopted Resolution 2009-47, affirming its intent to approve the proposed assessments for FY 2009-2010 and setting the public hearing for September 21, 2009 to approve the assessments. As required by the Streets and Highways Code Section 36500 et. seq., copies of the Resolution of Intention were mailed to each of the ten businesses to be assessed. A Notice of Public Hearing and copy of the Resolution were published in the Huntington Beach Independent on September 3, 2009. Since the adoption of the Resolution of Intention (2009-47), the BID has decided to open the HB Auto Store as well as further upgrade and maintain the electronic reader board. The BID has requested a loan from the Redevelopment Agency to pay for the cost of upgrading, operating and maintaining the electronic reader board. The original costs were not contemplated in the 2009 annual report submitted by the BID advisory report and approved by City Council. It is staffs recommendation that the annual report be modified to include the additional cost as provided in the revised budget attached to the annual report. During the public hearing, the City Council will hear all interested persons for or against levying the assessment. Protests may be made verbally or in writing; however, written protests shall be filed with the City Clerk at, or before, the time fixed for this hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received from the owners of businesses in the proposed area that will pay 50% or more of the assessments, no further proceedings to approve the assessment can be taken for a period of one year. Upon the approval of the Resolution, the new assessment formula will become effective as of October 1, 2009. The Auto Dealers BID anticipates assessments of $156,060 for FY 2009-2010. Combined with reserves of $26,000, the BID Board of Directors has proposed a total budget of $182,060 for FY 2008-2009. Upon approval of the Resolution, the FY 2009-2010 assessment will become effective as of October 1, 2009. Strategic Plan Goal: Enhance Economic Development. Environmental Status: Not applicable. -2- 9/9/2009 12:23 PM REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 9/21/2009 DEPARTMENT ID NUMBER: ED 09-57 Attachment(s): City Clerk's Page NumberNo. Description 1. Resolution No. 2009- 51 , 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 2009-2010. 2. Resolution No. 2009-47, approved on August 17, 2009, 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 Business Improvement District for Fiscal Year 2009- 2010. 3. Power Point Presentation. .3. 9/8/2009 3:41 PM ATTACHMENT # 1 �FrT�uc' /4 - O/- a007 RESOLUTION NO. 2009-51 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH AUTO DEALERS ASSOCLATION BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 2009-2010 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 time has come to continue the existence of the District for fiscal year 2009-2010 by levying assessments on those businesses that benefit from the improvements constructed; and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2007-2009, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2009-2010. On August 17, 2009, the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2009-2010 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 confirms and adopts the Amended Annual Report as changed at the conclusion of the Public Hearing held on September 21, 2009, attached hereto as Exhibit A and incorporated herein by this reference, which report includes a proposed budget for Fiscal Year 2009-2010 and a description of the improvements and activities to be provided for Fiscal Year 2009-2010. 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 2009-2010 as proposed in the Amended 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 Six Hundred Sixty Dollars ($660.00) per month for fiscal year 2009-2010 plus an additional $786.00 for maintenance and improvement of the electronic readerboard sign, for a total of $1,445.00 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 09-2124/38178 1 Resolution No. .20G9-51 intersection of Beach Boulevard and Center Avenue and other promotional and advertising activities. 4. The District's Amended Annual Report for fiscal year 2009-2010 as proposed at the conclusion of the Public Hearing on September 21, 2009 is hereby adopted. 5. This resolution shall take effect on October 1 , 2009 PASSED AND ADOPTED by the City Council_,)f the City of Huntington Beach at a regular meeting thereof held on the 21st day of September .3200 9 . 94X /3 rk� Mayor REVIE APPROVED: INITIATED AND APPROVED: i A inistrator Director of Econorfuc Development APPROVED AS TO FORM: Q� City Attorney M V 09-2124/38178 2 Resolution No. 2009-51 EXHIBIT A HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET/REPORT October 1, 2008 to September 30, 2009 REVENUE Budget 2008/09 Previous Year Carry Over $ 44,000.00 Business Improvement Assessment $ 177,903.00 Total Revenues: $ 221,903.00 EXPENSES Promotional Budgeted Exp thru June Exp July-Sept Total Difference Activities and Events $ 51,966.00 $ 27,755.00 $ 9,252.00 $ 37,007.00 $14,959.00 Management Services $ 27,000.00 $ 10,918.80 $ 3,639.00 $ 14,557.80 $12,442.20 Misc/Dues and Fees $ 500.00 $ 3,157.70 $ 3,157.70 -$2,657.70 Office rent/Maintenance $ 14,477.00 $ 10,035.00 $ 3,345.00 $ 13,380.00 $1,097.00 Office Supplies $ 1,000.00 $ 564.90 $ 189.00 $ 753.90 $246.10 Subtotal Promotional: $ 94,943.00 $ 52,431.40 $ 16,425.00 $ 68,856.40 $26,086.60 Reader Board Sign Maintenance Electricity $ 15,000.00 $ 12,427.00 $ 4,143.00 $ 16,570.00 -$1,570.00 Insurance/Taxes $ 10,600.00 $ 4,957.00 $ 2,814.00 $ 7,771.00 $2,829.00 Loan payment $ 83,000.00 $ 62,320.05 $ 20,773.35 $ 83,093.40 -$93.40 Maintenance $ 11,400.00 $ 8,550.00 $ 2,850.00 $ 11,400.00 $0.00 Phone(data transmission) $ 1,200.00 $ 2,157.65 $ 324.00 $ 2,481.65 -$1,281.65 Programming for sign $ 5,760.00 $ 4,290.00 $ 1,440.00 $ 5,730.00 $30.00 Subtotal Readerboard Sign: $ 126,960.00 $ 94,701.70 $ 32,344,35 $ 127,046.05 -$86.05 Total Expenses: $ 221,903.00 $ 147,133 $ 48,769 $ 195,902 $26,000.55 Resolution No. 2009-51 EXHIBIT A Huntington Beach Auto Dealer Business Improvement District Proposed Budget October 1 , 2009 to September 30, 2010 REVENUE(') Previous Year Carry Over (estimated) $ 26,000 Business Improvement Assessment $ 156,060 Total Revenues: $ 182,060 EXPENSES Promotional Activities and Events(2) $ 25,000 Management Services $ 27,000 Misc/Dues and Fees $ 500 Office Supplies $ 1,000 Subtotal Promotional: $ 53,500 Reader Board Sign Maintenance Electricity $ 15,000 Maintenance $ 12,300 Programming $ 5,760 Insurance/Taxes $ 10,600 Car Store $ 83,700 Phone (data transmission) $ 1,200 Subtotal Readerboard Sign: $ 128,560 Total Expenses: $ 182,060 NOTES: (1) Car Store assessments are based on $ 785 per month for each of the members. The operating assessments are based on $660 per month for each of the members. Dealers pay a total of $1,445 per month including a 1% administrative charge. Surplus Revenue of $26,000 represents excess assessment maintained by city finance dept. (2) HB Athletic Programs ($2,000); School Scholastic Programs ($2,000);School Grad Nights ($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events ($6,500). Resolution No. 2009-51 Exhibit B HUNTINGTON BEACH AUTO DEALERS BID LIST OF MEMBER H.B. CHRYSLER-JEEP H.B. FORD RICK EVANS/ROSE HELMAN OSCAR BAKHTIARI/OMAR 16701 BEACH BLVD. 18255 BEACH BLVD. PHONE 841-3999 FAX 842-2903-841-9993 PHONE 842-6611 FAX 847-8788 H.B. MAZDA SURF CITY NISSAN JOHN PATTERSON/ERIC CASILLAS-GSM LARRY SMITHIFRED ANGIULI 16800 BEACH BLVD. 17331 BEACH BLVD. PHONE 848-7739 FAX 847-1265 842-6666 F 375-0076/847-0759 TOYOTA OF HB H.B. MITSUBISHI BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK BIEN 18881 BEACH BLVD. 16751 BEACH BLVD. PHONE 847-8555 FAX 847-1105 PHONE 375-9493 FAX 842-1563 DELILLO CHEVROLET MC KENNA MOTORS DAVE DELILLO/BILL DEMAREST MARIN DELGADO/DANNY MC KENNA 18211 BEACH BLVD. 18711 BEACH BLVD. PHONE 847-6087 FAX 847-6721 PHONE 842-2000 FAX 714-843-8369 NORM REEVES HONDA HUNTINGTON BEACH DODGE PAUL CONANT/JASON CURNYN CLAY JAMES/LARRY SMITH 19131 BEACH BLVD. 16555 BEACH BLVD PHONE 842-5431 FAX 375-9783 PHONE 847-5515 FAX 596-0230 BILL NELSON A/DLR DIRECTOR 714-536-8614 sarfhb@socal.rr.com Res. No. 2009-51 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 21, 2009 by the following vote: AYES: Carchio, Dwyer, Green, Bohr, Coerper, Hardy, Hansen NOES: None ABSENT: None ABSTAIN: None Qog—.)- J4.2 CU Clerk and ex-offici Jerk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 RESOLUTION NO. 2009-4.7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT WITHIN THE HUN'TINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS VVIPROVEMENT DISTRICT FOR FISCAL YEAR 2009-2010 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 time has come to continue the existence of the District for fiscal year 2009-2010 by levying assessments on those businesses that benefit from the improvements constructed; and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2007-2009, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2009-2010. 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 2009-2010 and a description of the improvements and activities to be provided for Fiscal Year 2009-2010. SECTION 2. The City Council hereby declares its intent to levy and collect assessments within the District for Fiscal Year 2009-2010. 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 21, 2009 , 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 or in 09-2124135363 1 Resolution No. 2009-47 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 fi mishing.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.,P.O.Box 2700,Huntington Beach,CA 92648;telephone(949) 831-3443. 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 17th day of August 200 9 Mayor REVIE APPROVED: INITIATED PROVED: City Administ for Director of Economic Development APPROVED AS TO FORM: 4�ty--Attocv nti�-G-17-o 09-2124/35363 2 ��� ��%--.-``��� ����~���~�������� Resolution No. 2009-47 EXHIBIT HUNTINQTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET/REPORT October 1, 2OO8tn September 3O, 2O09 mevsmus ouuoetzooamo Previous Year Carry Over $ 44.000.00 Business Improvement Assessment $ 177,903.00 Total Revenues: $ 221.903.00 szpsmssa Promotional Budgeted ExpmmJune Expxu|y-sept Total oineenoo Activities and Events $ 51.e66.00 $ 27.755.00 o 9,252.00 * 37.007.00 $14.85e.00 Management Services $ 27.000.00 $ 10.918.80 $ 3.038.00 $ 14.557.80 $1e.**2.20 Misc/oueu and Fees * 500.00 * 3.157.70 $ 3.157.70 -$2.65770 OffiueenVMaintenanca * 14.477.00 * 10.035.08 $ 3.345.00 $ 13.380.00 *1.0e7.00 Reader Board Sign Maintenance Electricity * 15.000.00 * 12.427.00 $ 4.143.00 * 16.5/0.00 '$1.570.00 |nuunynce[Taxev $ 10.600.00 * 4.e57o0 $ 2.814.00 * 7771u0 $2.829.00 Loan payment $ 83.000.00 $ 62.320.05 $ 20.773.35 $ e3.0e3.*0 '$9340 Maintenance $ 11'400.00 * 8,550.00 $ 2.850.00 $ 11.400.00 $uuV Phone(data tranmomom* * 1.200.00 * 2.157.e5 $ 3e4.00 * 2.481a5 '$1.281.05 Total Expenses: $ 221.903.00 * 147.133 * 48.768 * 1e5.902 $26.000.55 ^ EXHIBIT A Huntington Beach Auto Dealer Business Improvement District Proposed Budget October 1 , 2009 to September 30, 2010 REVENUE(') Previous Year Carry Over (estimated) $ 26,000 Business Improvement Assessment $ 156,060 Total Revenues: $ 182,060 EXPENSES Promotional Activities and Events(2) $ 25,000 Management Services $ 27,000 Misc/Dues and Fees $ 500 Office Supplies $ 1,000 Subtotal Promotional: $ 53,500 Reader Board Sign Maintenance Electricity $ 15,000 Maintenance $ 12,300 Programming $ 5,760 Insurance/Taxes $ 10,600 Car Store $ 83,700 Phone (data transmission) $ 11200 Subtotal Readerboard Sign: $ 128,560 Total Expenses: $ 182,060 NOTES: (1) Car Store assessments are based on $ 785 per month for each of the members. The operating assessments are based on $660 per month for each of the members. Dealers pay a total of $1,445 per month including a 1% administrative charge. Surplus Revenue of $26,000 represents excess assessment maintained by city finance dept. (2) HB Athletic Programs ($2,000); School Scholastic Programs ($2,000);School Grad Nights ($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events ($6,500). Exhibit B HUNTINGTON REACH AUTO DEALERS RID LIST OF MEMBER H.B. CHRYSLER-JEEP H.B. FORD RICK EVANS/ROSS HELMAN OSCAR BAKHTIARI/OMAR 16701 BEACH BLVD. 18255 BEACH BLVD. PHONE 841-3999 FAX 842-2903-841-9993 PHONE 842-6611 FAX 847-8788 H.B. MAZDA SURF CITY NISSAN JOHN PATTERSON/ERIC CASILLAS-GSM LARRY SMITH/FRED ANGIULI 16800 BEACH BLVD. 17331 BEACH BLVD. PHONE 848-7739 FAX 847-1265 842-6666 F 375-0076/847-0759 TOYOTA OF HS H.B. MITSUBISHI BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK BIEN 18881 BEACH BLVD. 16751 BEACH BLVD. PHONE 847-8555 FAX 847-1105 PHONE 375-9493 FAX 842-1563 DELILLO CHEVROLET MC KENNA MOTORS DAVE DELILLO/BILL DEMAREST MARIN DELGADO/DANNY MC KENNA 18211 BEACH BLVD. 18711 BEACH BLVD. PHONE 847-6087 FAX 847-6721 PHONE 842-2000 FAX 714-843-8369 NORM REEVES HONDA HUNTINGTON BEACH DODGE PAUL CONANT/JASON CURNYN CLAY DAMES/LARRY SMITH 19131 BEACH BLVD. 16555 BEACH BLVD PHONE 842-5431 FAX 375-9783 PHONE 847-5515 FAX 596-0230 BILL NELSON A/DLR DIRECTOR 714-536-8614 surfhb@socal.rr.com ATTAC H M E N T #3 Huntington Beach Auto Dealers Business Improvement District FY 2009®2010 September 21, 2009 S ^µ \\ Auto Dealers BID ♦ 1992 : HB Auto Dealers Requested BID be Formed to Operate and Maintain Electronic Reader Board Sign ♦ 2004 : Redevelopment Agency Loaned $474,000 to Auto Dealers to upgrade the Electronic Reader Board Sign 1 BID Members HB Chrysler Jeep HB Mazda Toyota of Huntington Beach DeLillo Chevrolet Norm Reeves Honda McKenna Motors HB Ford Surf City Nissan Huntington Beach Dodge HB Mitsubishi s Proposed 2009-2010 Budget and Coals *Total Budget: $182,060 - $158,o6o anticipated assessments • Monthly assessment of $1,445 per dealer - - $26,000 carryover from reserves s Marketing and promotional activities e Establish the HB Car Store at Bella Terra 2 Renewal Process ♦ Scheduling of Public Hearing and Resolution of Intention to Levy Annual Assessment Adopted- August 17, 2009 — Copies and hearing notices mailed /published ♦ Public hearing required to consider all protests against BID renewal — Council to consider written protests — Options to renew, not renew, adjust BID 15 Public Head ♦ Written Protests: — If written protests of assessments are received from affected business owners that equate to 50% or more of the assessments, no further proceedings to approve the assessment can be taken for a period of one year PAW `of ; . . �.: . 3 Recommended Action ♦ Conduct the public hearing — Determine percentage of written protests e If more than 50%of assessments represented, Council cannot approve or consider again for one year ♦ Consider Resolution to Approve Annual Assessment Within the Huntington Beach Auto Dealers Business Improvement District for 2009/2010 ... 1 NO 41" ;. "'" 211111, RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Conduct Public Hearing and Adopt Resoluton for HB Auto Dealers Business Improvement District 2009/10 COUNCIL MEETING DATE: September 21, 2009 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR'MISSING ATTACHMENTS REVIEWED ARETURNED FORV#A DED:- Administrative Staff Deputy City Administrator',Initial ° City Administrator (initial) City Clerk EXPLANATION FOR RETURN°iOF ITEM- RCA Author: Powell Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Beach and Orange County by Decree of the Superior Court of Orange County, State of California, under date of Aug. 24, 1994,case A50479. PROOF OF PUBLICATION (ITYOFHUNTINGTONBEACH PUBLIC NOTICE PUBLIC HEARING FOR THEAUTO DEALERS ' 1 BUSINESS IMPROVEMENT DISTRICT RENEWAL STATE OF CALIFORNIA ) Auto NOTICE IS HEREBY GIVEN THAT the City Cou ut ill hold its'Public' Hearing on the 2009-2010 renewal of the Auto Dealers, Business Improvement_ .District atr its meeting scheduled on September 21, 2009 SS. at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, ` 2000 Main Street, Council Chambers as required by the Parking-and COUNTY OF ORANGE ) Business ionNoImprovement09- Area Law of belo as approved by City Council � in-Resolution No 2009-47 as re=prin#ed below: RESOLUTION NO.2009-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITYpF HUNTINGTON BEACH DECLARING THE CITY'S.INTENTION'TO I am the Citizen Of the United States and a LEVY AN ANNUAL ASSESSMENT WITHIN THE.HUNTINGTON BEACH] AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR. 09-2010 resident of the County aforesaid; I am over FISCAL sinesEAR Improve � � WHEREAS, the Parking and Business Improvement Area Law of 1989, � the age of eighteen years and not a party codified at Streets and Highways Code § 36500, et seq. (the "Act") authorizes cities-to establish parking and.business improvement areas to or interested in the below entitled matter. for the purpose of imposing benefit assessments on busin esses for certain purposes;and am a principal clerk Of the HUNTINGTON The City Council has formed a business improvement area, known as p p the Huntington Beach Auto Dealers Association Business Improvement BEACH INDEPENDENT, a news a er Of District(the"District"), by the passage,of Ordinance 3175•on,September p p 8, 1992. The time has come to continue the existence of the District ggeneral circulation printed and published in for fiscal year 2009/2010 by levying assessments on those businesses , p p I that benefit from the improvements constructed;and the City Of Huntington Beach County Of I ' The Districts;Advisory Board'has prepared and filed with the City Clerk a report for Fiscal Year'2008-2009, ("Annual Report") which sets Orange State Of California and the I forth the amount and basis of levying the assessment for Fiscal Year 2009-2010 attached Notice is a true and complete copy I' NOW, THEREFORE, the City Council of the City,of Huntington Beach does hereby resolve,determine and find as follows: as was printed and published On the SECTION 1. The City Council hereby approves the Annual Report filed p p by the Advisory Board in the City Clerk's office attached hereto .as followin date/ Exhibit A and incorporated herein by this reference, which includes a i g \s�• I proposed,budget for Fiscal Year 2009-2010 and a description of the improvements and activities to be provided for,Fiscal Year 2009-2010.•. SECTION 2. The City Council hereby declares its intent to,levy and collect assessments,within the District for Fiscal.Year 2009-2010. The ilevy is to apply,to small businesses classified by the City of Huntington Beach License Code as Class A Retail Sales, (Al) Auto, New, Used, i Parts, including new business of that classification located within the District as shown in,Exhibit B, in the amounts set forth therein;,which l 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. Council,on September 3, 2009 S pEemiber 21, 20,091iatheari 6:0,OnPMholr"as solonbe. before thereafter asthe Ciythis'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 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 declare, under penalty of perjury, that the to be levied, no further proceedings to.levy the proposed assessment foregoing IS true and correct. shall be taken for a period of one year from the date of the.finding of g g 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 S. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of intention to be published Executed on September 3, 2009 once in a newspaper of general circulation at least seven days before the public hearing. i at Costa Mesa, California SECTION 6.`Further. information regarding, the proposed business improvement district may be"obtained at',the Huntington Beach;City I Hall, 2000 Main Street, Huntington Beach, California.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. - I . ea_- 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 SlgnatU re 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 I Beach at a regular meeting thereof held on the seventeenth •day, of August,2009.' The estimated cost of providing the improvements and activities for Fiscal Year.2009-2010 is$182,060. " Copies of the exhibits referenced above are available in the office of the City Clerk or by calling'Doris Powell, Assistant'Project`Manager (714) 536-5457 or through the,City's website at: http://www.surfcity- hb.org. Published Huntington Beach Indepen dent,September 3,2009 085-783 Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Beach and Orange County by Decree of the Superior Court of Orange County,State of California,under date of Aug. 24, 1994,case A50479. PROOF OF CITY OFHUNTINGTONBEACH, PUBUC NOTICE PUBLICATION PUBLIC HEARING FOR THE AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT RENEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold its Public Hearing on the 2009-2010 1 renewal of the Auto Dealers Business i Improvement District,at its meeting scheduled on September 21, 2009 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, STATE OF CALIFORNIA )RNIA ) 2000 Main Street, Council Chambers as required by.the Parking and Business Improvement Area Law of 1989 as approved by City.Council SS. in.Resolution No 2009-47 as re-printed below: RESOLUTION NO.2009-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COUNTY OF ORANGE > 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 2009-2010 am the Citizen of the United States and a WHEREAS,,the Parking and:'Business Improvement Area.Law of 1989; codified at Streets and Highways Code § 36500,.et,seq. (the "Act") resident of the Count aforesaid I am Over authorises cities to,establish parking and business improvement areas Y , for the purpose of imposing benefit assessments on busin esses for the age of eighteen ears and not a art certain purposes;and g g Y party The.City Council has formed.a business improvement area, known.as the Huntington Beach Auto Dealers,Association Business Improvement to or interested in the below entitled matter. District (the"District"), by the passage of Ordinance 3175 on September I am a principal clerk of the HUNTINGTON 8; 1992. The time has come to continue the existence of the District p p for fiscal year 2009-2010 by levying assessments on those businesses BEACH INDEPENDENT, a news a er Of thatbenefitfromtheimprovementsconstructed;and p p 'The District's Advisory Board has prepared and filed with the:City ggeneral circulation, printed and published in Clerk a report for Fiscal Year 2008-2009, ("Annual Report") which sets p p forth the amount and basis of levying the assessment for Fiscal,-Year the Cityof Huntington Beach, Count of 2009=2010 - - g Y NOW, THEREFORE, the.City Council of the City of Huntington Beach does hereby resolve,determine and find as follows: Orange, State Of California, and the SECTION 1. The City Council-hereby approves the Annual Report filed attached Notice is a true and complete co by the Advisory Board in the City Clerk's office 'attached hereto as p copy Exhibit A and incorporated herein by this reference, which includes,a as was printed and published On the proposed budget for Fiscal Year 2009-2010 and description of,the improvements and activities to be provided for Fiscal Year 2009-2010. ' . j SECTION'2. The City_Council hereby declares its intent to levy and following date(s): collect assessments within the District for Fiscal Year 2009,2010. The levy is to apply to small businesses classified bg the City of Huntington , Beach License Code as Class A Retail Sales, .(Al).Auto, New, Used, j Parts, including new business of.that classification located within the I 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 0 and Center Avenue and other promotional'and advertising activities. r SECTION 4. A public hearing shall be held before the City Council on September 21, 2009 at 6:00 PM or as,soon,thereafter as this matter may be heard, in the Council Chambers of the City Hall, 2000 Main j Se tember 3 2009 Street, Huntington Beach,'California, at which time the Council will hear p all interested persons for or against levying of the assessment,and the furnishing of specified types of improvements or activities.Protests may l be made orally or in writing; but, if written, shall be filed.witt the City Clerk at or before the time fixed.for the hearing andcontain 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 I to be levied, no further proceedings-to levy the proposed assessment j shall betaken 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 declare, under penalty of perjury, that the against the'furnishing,of a specified type-or types of improvements or activity within the District,,those types of improvements or activities foregoing is true and correct. 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. . \ I Executed on September 3 2009 improvement 6. Further, information regarding the proposed business district may be obtained at the. Huntington Beach City ' Hall, 2000 Main Street, Huntington Beach, California 92648;,Jelephone j at Costa Mesa, California (714) 536-5542; or from the Huntington Beach Auto Dealers Association, Inc:, P.O. Box 2700, Huntington Beach, CA 92648; telephone .(949) 831-3443. . . 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 Signature Beach. at a regular meeting,thereof held on the seventeenth day of August,2009: The,estimated cost'of providing the improvements and activities for j Fiscal Year 2009-2010 is$182,060. . Copies of the exhibits referenced above are.available in the office of ! the City Clerk or by. calling Doris Powell, Assistant Project Manager (714).536-5457 or through the City's website at: http://www.surfcity hb.org I Published Huntington Beach Independent September 3,2009 085783 7-2 Council/Agency Meeting Held: Deferred/Continued to: A p ov d Condi o al y Appro d ❑ D d �� Cit I rW-s gnatu -a-� �a�y UAWCOZ7OV (91 Council Meeting Date: 8/17/2009 Department ID Number: ED 09-54 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL M.EMBERS SUBMITTED BY: FRED A. WILSON, CITY ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF E ONOMIC DEVELOPMENT 41-6 SUBJECT: Adopt Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2009/10 within the Huntington Beach Auto Dealers Business Improvement District, and Schedule Public Hearing for September 21, 2009 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) 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 for financing the construction costs, operation, and maintenance of the electronic reader board sign and other promotional programs. The State 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: Revenues and expenses will be included in the 2009/10 Huntington Beach Auto Dealers Business Improvement District Budget (Fund 701). Recommended Action: Motion to: 1. Approve the Annual Report and Fiscal Year 2009-2010 Budget of the Huntington Beach Auto Dealers Business Improvement District. 2. Adopt City Council Resolution No. 2009-47 , 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 Business Improvement District for Fiscal Year 2009/10. 3. Direct the City Clerk to schedule a public hearing to be held on September 21, 2009 and send copies of the Resolution of Intention and assessment formula to each business to be assessed and publish the same in a newspaper of general circulation as required. Alternative Action(s): 1. Do not approve the Annual Report and Fiscal Year 2009-2010 Budget. 2. Deny the request to approve the Resolution of Intention. REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 8/17/2009 DEPARTMENT ID NUMBER: ED 09-54 Analysis: At the request of the Huntington Beach Auto Dealers Association, 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 located by the 405-freeway that was first constructed in 1992. On May 3, 2004, the Redevelopment Agency approved a $474,000 loan with the Auto Dealers Association to upgrade the existing electronic reader board sign. Under the Business Improvement District State Law, the Auto Dealers raise additional monies to market and operate other programs to enhance their BID. In order for the Auto Dealers BID to be renewed, City Council needs to approve their annual report and their proposed budget for 2009/10. As approved by the Auto Dealers Board at their July 15, 2009 meeting, the 2009/2010 monthly assessments will include $660 for promotional activities, including the reader board sign maintenance and operating costs, and a $785 loan payment/Car Store assessment, for a total monthly assessment of $1,445 per dealer. The final loan payment of the approved in 2004 loan will be due in October 2009. The Auto Dealers Association has also included funds in their 2009/2010 budget that will be used to establish the HB Car Store at the Bella Terra Shopping Center. Opening this retail/information store within the Redevelopment Project Area where the reader board sign is located is required by Caltrans in order to renew the sign permit. As required by State law, a protest hearing must be held to provide the opportunity for any affected businesses to voice their protests, or they can submit protests in writing before the public hearing. The Resolution of Intention sets this public protest hearing for September 21, 2009. At that time, the City Council will tally the percentage of assessments protested and will hear additional public comments on the renewal of the Auto Dealers BID. If the protests total less than 50% of the total amount of money to be collected, the City Council can approve the renewal of the BID. The City Council also has the option of reducing assessments or modifying the BID boundary area if public comments prompt adjustment. Strategic Plan Goal: Enhance Economic Development Environmental Status: Not applicable. Attachment(s): Plage Number No.City Clerk's - 1 Resolution No. 2009-47 , 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 Business Improvement District for Fiscal Year 2009/10. -2- 8/7/2009 9:56 AM ATTACHMENT # 1 RESOLUTION NO. 2009-47 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 2009-2010 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 time has come to continue the existence of the District for fiscal year 2009-2010 by levying assessments on those businesses that benefit from the improvements constructed; and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2007-2009, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2009-2010. 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 2009-2010 and a description of the improvements and activities to be provided for Fiscal Year 2009-2010. SECTION 2. The City Council hereby declares its intent to levy and collect Iassessments within the District for Fiscal Year 2009-2010. 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 21, 2009 , 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 or in 09-2124/35363 1 Resolution No. 2009-47 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., P.O. Box 2700, Huntington Beach, CA 92648; telephone(949) 831-3443. 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 17 th day of August ; 200 9 OF Mayor REVIE APPROVED: INITIATED ,D PROVED: .,i City Administ for Director of Economic Development APPROVED AS TO FORM: JityyAtto ey AW- -17-0 (� 09-2124/35363 2 Resolution No. 2009-47 EXHIBIT A HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET/REPORT October 1, 2008 to September 30, 2009 REVENUE Budget 2008/09 Previous Year Carry Over $ 44,000.00 Business Improvement Assessment $ 177,903.00 Total Revenues: $ 221,903.00 EXPENSES Promotional Budgeted Exp thru June Exp July-Sept Total Difference Activities and Events $ 51,966.00 $ 27,755.00 $ 9,252.00 $ 37,007.00 $14,959.00 Management Services $ 27,000.00 $ 10,918.80 $ 3,639.00 $ 14,557.80 $12,442.20 Misc/Dues and Fees $ 500.00 $ 3,157.70 $ 3,157.70 -$2,657.70 Office rent/Maintenance $ 14,477.00 $ 10,035.00 $ 3,345.00 $ 13,380.00 $1,097.00 Office Supplies $ 1,000.00 $ 564.90 $ 189.00 $ 753.90 $246.10 Subtotal Promotional: $ 94,943.00 $ 52,431.40 $ 16,425.00 $ 68,856.40 $26,086.60 Reader Board Sign Maintenance Electricity $ 15,000.00 $ 12,427.00 $ 4,143.00 $ 16,570.00 -$1,570.00 Insurance/Taxes $ 10,600.00 $ 4,957.00 $ 2,814.00 $ 7,771.00 $2,829.00 Loan payment $ 83,000.00 $ 62,320.05 $ 20,773.35 $ 83,093.40 -$93.40 Maintenance $ 11,400.00 $ 8,550.00 $ 2,850.00 $ 11,400.00 $0.00 Phone(data transmission) $ 1,200.00 $ 2,157.65 $ 324.00 $ 2,481.65 -$1,281.65 Programming for sign $ 5,760.00 $ 4,290.00 $ 1,440.00 $ 5,730.00 $30.00 Subtotal Readerboard Sign: $ 126,960.00 $ 94,701.70 $ 32,344.35 $ 127,046.05 -$86.05 Total Expenses: $ 221,903.00 $ 147,133 $ 48,769 $ 195,902 $26,000.55 Resolution No. 2009-47 EXHIBIT A Huntington Beach Auto Deaier Business Improvement District Proposed Budget October 1, 2009 to September 30, 2010 REVENUE(" Previous Year Carry Over (estimated) $ 26,000 Business Improvement Assessment $ 156,060 Total Revenues: $ 182,060 EXPENSES Promotional Activities and Events(2) $ 25,000 Management Services $ 27,000 Misc/Dues and Fees $ 500 Office Supplies $ 1,000 Subtotal Promotional: $ 53,500 Reader Board Sign Maintenance Electricity $ 15,000 Maintenance $ 12,300 Programming $ 5,760 Insurance/Taxes $ 10,600 Car Store $ 83,700 Phone (data transmission) $ 1,200 Subtotal Readerboard Sign: $ 128,560 Total Expenses: $ 182,060 NOTES: (1) Car Store assessments are based on $ 785 per month for each of the members. The operating assessments are based on $660 per month for each of the members. Dealers pay a total of $1,445 per month including a 1% administrative charge. Surplus Revenue of$26,000 represents excess assessment maintained by city finance dept. (2) HB Athletic Programs ($2,000); School Scholastic Programs ($2,000);School Grad Nights ($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events ($6,500). Resolution No. 2009-47 Exhibit B HUNTIINGTON BEACH AUTO DEALERS BID LIST OF MEMBER H.B. CHRYSLER4EEP H.B. FORD RICE( EVANS/ROSS HELMAN OSCAR BAKHTIARI/OMAR 16701 BEACH BLVD. 18255 BEACH BLVD. PHONE 841-3999 FAX 842-2903-841-9993 PHONE 842-6611 FAX 847-8788 H.B. MAZDA SURF CITY NISSAN JOHN PATTERSON/ERIC CASILLAS-GSM LARRY SMITH/FRED ANGIULI 16800 BEACH BLVD. 17331 BEACH BLVD. PHONE 848-7739 FAX 847-1265 842-6666 F 375-0076/847-0759 TOYOTA OF HS H.B: MITSUBISHI BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK WEN 18881 BEACH BLVD. 16751 BEACH BLVD. PHONE 847-8555 FAX 847-1105 PHONE 375-9493 FAX 842-1563 DELILLO CHEVROLET MC KENNA MOTORS DAVE DELILLO/BILL DEMAREST MAR1N DELGADO/DANNY MC KENNA 18211 BEACH BLVD. 18711 BEACH BLVD. PHONE 847-6087 FAX 847-6721 PHONE 842-2000 FAX 714-843-8369 NORM REEVES HONDA HUNTINGTON BEACH DODGE DAN KLAWITTER/JOHN DALPE CLAY JAMES/LARRY SMITH 19131 BEACH BLVD. 16555 BEACH BLVD PHONE 842-5431 FAX 375-9783 PHONE 847-5515 FAX 596-0230 BILL NELSON A/DLR DIRECTOR 714-536-8614 surfhb@s®cal.rr.com Res. No. 2009-47 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 17, 2009 by the following vote: AYES: Carchio, Green, Bohr, Coerper, Hardy, Hansen NOES: None ABSENT: Dwyer ABSTAIN: None CitVClerk and ex-officio Verk of the City Council of the City of Huntington Beach, California RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Approve Report and Resolution of Intention to Renew the Huntington Beach Auto Dealers BID 2009/10 COUNCIL MEETING DATE: August 17, 2009 RCA.ATTACHMENTS STATUS ... Ordinance (w/exhibits &legislative draft if applicable) Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑ (Approved as to form by City Attorney Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not Applicable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Applicable Staff Report (If applicable) Attached ❑ Not Applicable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Applicable EXPLANATION FOR MISSING ATTACHMENTS- REVIEWED t RETURNED FOR A ' DED Administrative Staff JIJI_ 3 0 2009 p £ De ut City Administrator City Administrator Initial City Clerk ( ) EXPLANATION FOR RETURN OF ITEM: Only)_ ,(Below Space For Cit Clerk"s Use RCA Author: Powell JAW 7 - CITY OF ITUNTINGTON BEACH Interoffice Communication Fg,! •L"p � TO: Honorable Mayor and Membert, of the City Council VIA: Fred A. Wilson, City Admi foEconomic r FROM: Stanley Smalewitz, Directo Development 43 DATE: August 17, 2009 SUBJECT: Late Communication — Consent Calendar Item #5 — Adopt Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2009/10 within the Huntington Beach Auto Dealers Business Improvement District, and Schedule Public Hearing for September 21, 2009 Economic Development would like to clarify the monthly assessment of$785 per dealer will be used to establish the HB Car Store. This change is reflected on Attachment #1 Exhibit A Huntington Beach Auto Dealers Business Improvement District Proposed Budget. In addition, the Dodge dealership was inadvertently left off of the list of BID members Exhibit B. Attached with this memo is a revised 2009/2010 Budget and list of BID members. � :7 Aco� EXHIBIT A Huntington Beach Auto Dealer Business Improvement District Proposed Budget October 1 , 2009 to September 30, 2010 REVENUE (') Previous Year Carry Over (estimated) $ 26,000 Business Improvement Assessment $ 156,060 Total Revenues: $ 182,060 EXPENSES Promotional Activities and Events(2) $ 25,000 Management Services $ 27,000 Misc/Dues and Fees $ 500 Office Supplies $ 1,000 Subtotal Promotional: $ 53,500 Reader Board Sign Maintenance Electricity $ 15,000 Maintenance $ 12,300 Programming $ 5,760 Insurance/Taxes $ 10,600 Car Store $ 83,700 Phone (data transmission) $ 1,200 Subtotal Readerboard Sign: $ 128,560 Total Expenses: $ 182,060 NOTES: (1) Car Store assessments are based on $ 785 per month for each of the members. The operating assessments are based on $660 per month for each of the members. Dealers pay a total of $1,445 per month including a 1% administrative charge. Surplus Revenue of $26,000 represents excess assessment maintained by city finance dept. (2) HB Athletic Programs ($2,000); School Scholastic Programs ($2,000);School Grad Nights ($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events ($6,500). Exhibit B HUNTINGTON REACH AUTO DEALERS BID LIST OF MEMBER H.B. CHRYSLER-.BEEP H.B. FORD RICK EVANS/BOSS HELMAN OSCAR BAKHTIARI/OMAR 16701 BEACH BLVD. 18255 BEACH BLVD. PHONE 841-3999 FAX 842-2903-841-9993 PHONE 842-6611 FAX 847-8788 H.B. MAZDA SURF CITY NISSAN JOHN PATTERSON/ERIC CASILLAS-GSM LARRY SMITH/FRED ANGIULI 16800 BEACH BLVD. 17331 BEACH BLVD. PHONE 848-7739 FAX 847-1265 842-6666 F 375-0076/847-0759 TOYOTA OF HB H.B. MITSUBISHI BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK BIEN 18881 BEACH BLVD. 16751 BEACH BLVD. PHONE 847-8555 FAX 847-1105 PHONE 375-9493 FAX 842-1563 DELILLO CHEVROLET MC KENNA MOTORS DAVE DELILLO/BILL DEMAREST MARIN DELGADO/DANNY MC KENNA 18211 BEACH BLVD. 18711 BEACH BLVD. PHONE 847-6087 FAX 847-6721 PHONE 842-2000 FAX 714-843-8369 NORM REEVES HONDA HUNTINGTON BEACH DODGE DAN KLAWVITTER/JOHN DALPE CLAY JAMES/LARRY SMITH 19131 BEACH BLVD. 16555 BEACH BLVD PHONE 842-5431 FAX 375-9783 PHONE 847-5515 FAX 596-0230 BILL NELSON A/DLR DIRECTOR 714-536-8614 surfhb@s®cal.rr.com EXHIBIT A Huntington Beach Auto Dealer Business Improvement District Proposed Budget October 1 , 2009 to September 30, 2010 REVENUE(') Previous Year Carry Over (estimated) $ 26,000 Business Improvement Assessment $ 156,060 Total Revenues: $ 182,060 EXPENSES Promotional Activities and Events(2) $ 25,000 Management Services $ 27,000 Misc/Dues and Fees $ 500 Office Supplies $ 1,000 Subtotal romotional: $ 53,500 Reader Board Sign Maintenance Electricity $ 15,000 Maintenance $ 12,300 Programming $ 5,760 Insurance/Taxes $ 10,600 Car Store/Loan payment $ 83,700 Phone (data transmission) $ 1,200 Subt °tat Readerboard Sign: $ 128,560 Total Expenses: $ 182,060 NOTES: (1) Car Store/Loan assessments ar based on $ 785 per month for each of the nine members. The operating assessments are based on $660 per month for each of the members. Dealers pay a total o 1,445 per month including a 1% administrative charge. Surplus Revenue of $26,000 represents excess assessment maintained by city finance dept. f( (2) HB Athletic Programs ($2�000); School Scholastic Programs($2,000);School Grad Nights ($2,500);Image adv,,ertising to buy at home ($12,000); Plus Misc. promotional activities and events ($6,500). � INr �T A?,' , s Resolution No. 2009-47 Exhibit B HUNTINGT®N BEACH AUTO DEALER ASSOC/ATI'ON LIST OF MEMBER H.B. CHRYSLER-JEEP H.B. FORD RICK EVANS/ROBS HELMAN OSCAR/BAKHTIARI/OMAR 16701 BEACH BLVD. 18255 BEACH BLVD. PHONE 841-3999 FAX 842-2903-841-9993 PHWNE 842-6611 FAX 847-8788 H.B. MAZDA 'SURF CITY NISSAN JOHN PATTERSON/ERIC CASILLAS-GSM LARRY SMITH/FRED ANGIULI 16800 BEACH BLVD. 17331 BEACH BLVD. PHONE 848-7739 FAX 847-1265 842-6666 F 375-0076/847-0759 TOYOTA OF HB H.B. MITSUBISHI BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK BIEN 18881 BEACH BLVD. 16751 BEACH BLVD. PHONE 847-8555 FAX 847-1105 PHONE 375-9493 FAX 842-1563 DELILLO CHEVROLET MC KENNA MOTORS DAVE DELILLO/BILL DEMAREST MARIN DELGADO/DANNY MC KENNA 18211 BEACH BLVD. 18711 BEACH BLVD. PHONE 847-6087 FAX 847-671 1 PHONE 842-2000 FAX 714-843-8369 NORM REEVES HONDA DAN KLAWITTER/JOHN I ALPE 19131 BEACH BLVD. PHONE 842-5431 F 375-9783 BILL NELSON A/DLDIRECTOR 714-536-8614 surfhb@socal.rr.com mwip- 5d y ' 4 (/7 Impression antibourrage et a sechage rapide ® www.avery.com AVERY® 5960mc Utilisez le gabarit 5960- 11-800-GO-AVERY H.B. CHRYSLER-JEEP H.B. FORD H.B. MAZDA RICK EVANS/ROSS HELMAN OSCAR BAKHTIARI/OMAR JOHN PATTERSON 16701 BEACH BLVD. 18255 BEACH BLVD. ERIC CASILLAS-GSM HUNTINGTON BEACH, CA 92647 HUNTINGTON BEACH, CA 92647 16800 BEACH BLVD. HUNTINGTON BEACH, CA 92647 TOYOTA OF HB H.B. MITSUBISHI SURF CITY NISSAN BOB MILLER/DENNIS PRADO ABBAS AHMADI/CHUCK BIEN LARRY SMITH/FRED ANGIULI 18881 BEACH BLVD. 16751 BEACH BLVD. 17331 BEACH BLVD. HUNTINGTON BEACH, CA 92647 HUNTINGTON BEACH, CA 92647 HUNTINGTON BEACH, CA 92647 DELILLO CHEVROLET MC KENNA MOTORS MARIN NORM REEVES HONDA DAVE DELILLO/BILL DEMAREST DELGADO/DANNY MC KENNA DAN KLAWITTER/JOHN DALPE 18211 BEACH BLVD. 18711 BEACH BLVD. 19131 BEACH BLVD. HUNTINGTON BEACH, CA 92647 HUNTINGTON BEACH, CA 92647 HUNTINGTON BEACH, CA 92647 Clay James/Larry Smith Huntington Beach Dodge 16555 Beach Blvd. Huntington Beach, CA 92647 YQ AHMV-09-008-L ® w1096S 31V1dW31®AGaAV asn w1096S ®JlH�/,V wori(aaAL--MAnnn ® 6ul�ulad aaa3 a6pnw5 pue wer PROOF OF SERVICE OF PAPERS STATE OF CALIFORNIA ) ) ss. COUNTY OF ORANGE ) I am employed in the County of Orange, State of California. I am over the age of 18 and not a party to the within action; my business address is 2000 Main Street, Huntington Beach, CA 92648. Pursuant to Code of Civil Procedure § 1094.6, on August 18, 2009, 1 served the foregoing documents(s) described as: Resolution No. 2009-47, A Resolution of Intention to Levy an Annual Assessment within the Huntington Beach Auto Dealers Association Business Improvement District for Fiscal Year 2009-2010 on the interested parties in this action by placing a true copy thereof in a sealed envelope addressed as follows: 10 Auto Dealers —See label list a. [X] BY MAIL -- I caused such envelope to be deposited in the mail at Huntington Beach, California. I am "readily familiar" with the firm's practice of collection and processing correspondence for mailing. It is deposited with U.S. Postal Service on that same day in the ordinary course of business, with postage thereon fully prepaid. I am aware that, on motion of a party served, service is presumed invalid if postal cancellation date or postage meter date is more than 1 day after date of deposit for mailing in the affidavit. b. [ ] BY MAIL -- By depositing a true copy thereof in a sealed envelope with postage thereon fully prepaid in the United States mail at Huntington Beach, California, addressed to the address shown above. c. [ ] BY DELIVERY BY HAND to the office of the addressee. d. [ ] BY PERSONAL DELIVERY to the person(s) named above. e. [ ] BY FAX TRANSMISSION to No. I declare under penalty of perjury under the laws of the State of California that the foregoing is true and correct. Executed on August 18, 2009, at Huntington Beach, California. j,SSenior deputy City 1C k glfollowup/appeal/!!proof of service letter!!.doc Cn'71--/t — P/id,/O� /dq CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT RENEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold its Public Hearing on the 2009-2010 renewal of the Auto Dealers Business Improvement District at its meeting scheduled on September 21,2009 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street,Council Chambers as required by the Parking and Business Improvement Area Law of 1989 as approved by City Council in Resolution No 2009-47 as re-printed below: RESOLUTION NO.2009-47 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 2009-2010 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 time has come to continue the existence of the District for fiscal year 2009-2010 by levying assessments on those businesses that benefit from the improvements constructed;and The District's Advisory Board has prepared and filed with the City Clerk a report for Fiscal Year 2008-2009, ("Annual Report")which sets forth the amount and basis of levying the assessment for Fiscal Year 2009-2010 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 2009-2010 and a description of the improvements and activities to be provided for Fiscal Year 2009- 2010. SECTION 2. The City Council hereby declares its intent to levy and collect assessments within the District for Fiscal Year 2009-2010. The levy is to apply to small businesses classified by the City of Huntington Beach License Code as Class A Retail Sales, (A1)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 21,2009 at 6:00 PM 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 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; 08-1159/13393 1 or from the Huntington Beach Auto Dealers Association, Inc., P.O. Box 2700, Huntington Beach, CA 92648;telephone (949)831-3443. 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 seventeenth day of August,2009. The estimated cost of providing the improvements and activities for Fiscal Year 2009-2010 is$182,060. Copies of the exhibits referenced above are available in the office of the City Clerk or by calling Doris Powell,Assistant Project Manager (714)536-5457 or through the City's website at: http://www.surfcity- hb.org/Govemment/Agendas/sep 1709.cfin 08-1159/13393 2