HomeMy WebLinkAboutAdopt Resolution No. 2017-51 declaring the City's Intention Dept. ID ED 17-26 Page 1 of 2
Meeting Date: 11/6/2017
VPPOVEZ -7-o
uy l.l}i •- �
CITY OF HUNTINGTON BEACH
REQUEST FOR. CITY COUNCIL ACTION
MEETING DATE: 11/6/2017
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Kellee Fritzal, Deputy Director, Business Development
SUBJECT: Adopt Resolution No. 2017-51 declaring the City's Intention to Disestablish the
Huntington Beach Auto Dealers Association Business Improvement District
(BID); and, schedule a Public Hearing for December 4, 2017
Statement of Issue:
On October 18, 2017, the Huntington Beach Auto Dealers Association voted to request the City
Council dissolve the Huntington Beach Auto Dealers Association Business Improvement District
(BID). To commence the process to dissolve the BID the City Council is requested to adopt
Resolution No. 2017-15 declaring the City's intention to disestablish the Huntington Auto Dealers
Association BID and schedule a Public Hearing for December 4, 2017.
Financial Impact:
On September 18, 2017, the City Council adopted Resolution No. 2017-32 approving an Annual
Assessment within the Huntington Beach Auto Dealer Business Improvement District for Fiscal
Year 2017-2018. The disestablishment of the Auto Dealer BID would cancel the annual
assessment from the ten (10) auto dealers (Fund 701) on January 17, 2018.
Recommended Action:
A) Adopt Resolution No. 2017-51, "A Resolution of the City Council of the City of Huntington Beach
Declaring the City's Intention to Disestablish the Huntington Beach Auto Dealers Association
Business Improvement District"; and,
B) Direct the City Clerk to schedule a public hearing to be held on December 4, 2017, and send
copies of the Resolution of Intention to Disestablish the Huntington Beach Auto Dealers Association
Business Improvement District to each auto dealer and publish the same in a newspaper of general
circulation.
Alternative Action(s):
Do not approve Resolution and direct staff as necessary.
Analysis:
On September 8, 1992, the City Council approved Ordnance 3175 which formed a business
improvement area, known as the Huntington Beach Auto Dealers Association Business
Improvement District (BID). The BID was established to provide the Auto Dealers an economic tool
to help the dealers compete in a regional market and to assist with the electronic reader board.
Item 13. - l HB -110-
Dept. ID ED 17-26 Page 2 of 2
Meeting Date: 11/6/2017
The Auto Dealers Association contacted the City via email on October 2, 2017, requesting the City
dissolve the BID. The Auto Dealers Association stated that the economic development tool for the
dealers is no longer required and they can sufficiently sustain their business plan and marketing
goals without the BID. On October 18, 2017, a vote was conducted by the Huntington Beach Auto
Dealers Association BID to disestablish the BID. A majority vote of 7-0-3 voted to request to the
City Council the disestablishment of the Auto Dealers BID. Therefore, it is recommended that the
City Council adopt Resolution 2017-51 to disestablish the BID.
Environmental Status: Not Applicable
Strategic Plan Goal:
Non-Applicable —Administrative Item
Attachment(s):
1. Resolution No. 2017-51, "A Resolution of the City Council of the City of Huntington Beach
Declaring the City's Intention to Disestablish the Huntington Beach Auto Dealers
Association Business Improvement District"
HB -111- Item 13. - 2
RESOLUTION NO. 2017-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON
BEACH DECLARING THE CITY'S INTENTION TO DISESTABLISH THE
HUNTINGTON BEACH AUTO DEALERS ASSOCIATION
BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the California Legislature, in adopting the Parking and Business
Improvement Area Law of 1989 (Streets and Highways Code §36500.) found that cities
are authorized to levy assessments on businesses in order to promote economic
revitalization and tourism, create jobs, attract new businesses and prevent erosion of
business districts; and
The City Council formed a business improvement district, the Huntington Beach
Auto Dealers Association Business Improvement District (the "District"), by the passage
of Ordinance 3175 on September 8, 1992; and
Pursuant to a request from the Huntington Beach Auto Dealers Association, the
City is proposing to disestablish the District pursuant to the process detailed in Streets
and Highways Code §36550,
NOW, THEREFORE, the City Council of the City of Huntington Beach does
hereby resolve as follows:
SECTION 1. The City Council proposes to disestablish the District at the request
of the District, because the assessments are no longer required to finance the cost of the
electronic readerboard.
SECTION 2. Attached to this Resolution of Intent to disestablish the District is a
proposal to dispose of any assets acquired with the revenues of the assessments levied
within the parking and business improvement area.
SECTION 3. A public hearing shall be held before the City Council on
December 4, 2017, 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 the proposed
disestablishment of the District.
SECTION 4. The City Clerk is hereby directed to provide notice of the public
hearing by publishing the Resolution of Intention in a newspaper of general circulation in
the City once, for at least seven days before the public hearing; and to mail a complete
copy of the Resolution of Intention by first-class mail to each business owner in the area
within seven days of the City Council's adoption of the Resolution of Intention to
disestablish the District.
17-6057/167112hnv 1
RESOLUTION NO. 2017-51
SECTION 5. Further information regarding the proposed disestablishment of the
District may be obtained at the Huntington Beach City Hall, 2000 Main Street,
Huntington Beach, California 92648; telephone (714) 536-5542.
SECTION 6. 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 4(-� day of N( �► 2017.
Mayor
REVIEWED AND APPROVED: APPROVED AS T ORM:
YC
anager City Attorney/
ITIATED AND APPROVED:
Deputy Direc of Economic
Development
17-6057/167112/mv 2
Res. No. 2017-51
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU 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
November 6, 2017 by the following vote:
AYES: O'Connell, Semeta, Posey, Delgleize, Hardy, Brenden, Peterson
NOES: None
ABSENT: None
ABSTAIN: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California
Huntington Beach Auto Dealer Association, Inc,
2124 Main Street, Suite 195
Huntington Beach, CA. 92648
� A
(714) 536-3200
October 24,2017
Fred Wilson,City Manager Re: Business Improvement District.
City of Huntington Beach HB Auto Dealers Association
200 Main Street
Huntington Beach,'Ca 92648
cc.Lori Ann Farrell,Assistant City Manager
The Honorable Michael Gates,City Attorney
Kelly Fritzal,Deputy Director Business Development
Dear Mr. Wilson,Honorable Mr.Gates,et al:
The BID process was crafted to be a tool to help the HB Auto Dealers compete in our regional.market without being
an Auto Mall like Cerritos, Ca. Those monthly assessments helped us fund an aggressive marketing campaign and
allowing us to compete and survive for many years.
Under the original Ordinance 3175,the City established the HB Auto Dealers Business Improvement District(BID)
August 17, 1992,about 25 years ago, Those years of BID derived Assessments were valuable in building our brand
and outreach programs. Again,it was a good economic development tool for the dealers,for that period.
The Executive Committee of the HB Auto Dealers Association has recommended to the BID general membership a
request to the city to dissolve the instruments that created our BID. We are now sufficient In our business plan and
marketing plans to be self funded in our efforts to sustain our marketing goals.
The details of our requested dissolution will fallow. We need to catch up with possible reimbursements
and accounting issues to close out the 2016-17 Fiscal Year-We are anxious to do what is required rapidly and would
like this effective on or about October 1,2017, As soon as our paperwork is complete,expected to be within 7 to 10
days,let's schedule a meeting to further perfect our request.
As we move towards dissolving the BID. please conclude the process with any and all assets accumulated in the
BID accounts to be settled via reimbursements as per the usual voucher package process. The current accounting is
attached.
Again,thank you all for the effective use of the BID tool and the great relations this partnership afforded both of us,
We certainly became more familiar with most of the leaders in our local government, and the City was able to meet
each of us on solid business terms.
Sincerely,
Bob Miller,VP/General Manager
Toyota of HB
President,HB Auto Dealers Assoc
Advisory Board Chair: HB Auto Dealers BID
Item 13. - 5 HB -114-
Bid Accounting
The BID Assets on October 1, 201.7 include:
Assessment Money.Received by the City $ 2,600.00
Assessment Accounts Receivable due from Dealers
Current 9,400.00
Past Due 7,520.00
Total Accounts Receivable 16,920.00
Total Assets $ 19,520.00
The Disposal Plan for BID Assets is that the BID will. dispose of all current assets
and all future Bid Assessments collected by the City between now and the date of
final dissolution by presenting to the city a voucher package of paid invoices by
and/or on behalf of the BID for approved budgeted items.
H Q -115- Item 13. - 6
Switzer, Donna
From: David Ward [daward@scng.com]
Sent: Wednesday, November 08, 2017 12:02 PM
To: Switzer, Donna
Subject: Re: Public Hearing Notice
Good morning Donna.
How are you doing today?
Your notice is all set and ready to go
Adl#11037751
Run Date 11/23
Cost $273
PROOF
i
CITY OPUYLICIN8TQN BEACH
PUBLIC HEARING FOR THE
HUNTINGTON BEACH AUTO DEALER ASSOCIATION
BUSINESESRAL IMPROVEMENT DISTRICTDS
NOTICE IS HEREBY GIVEN THAT the City Council will hold its
Public Hearing on the Disestablishment of the Huntington Beach Au-
to Dealer Business Improvement District at its meeting scheduled on
December 4, 2017 at 6:00 PM or soon thereafter at the Huntington
Beach Civic Center 2000 Main Street, Council Chambers, as required
by the Parkin an c� Business Improvement Area Law of 1989 as ap-
proved by the�ity Council in Resolution No. 2017-51 as reprinted be-
low:
RESOLUTION NO.2017-51
A RESOLUTION OF THE CITY COUNCILOF THECITYOF
HUNTINGTON BEACH DECLARING THE CITY,S INTENTION TO
DISESTABLISH THE HUNTINGTON BEACH
AUTO DEALERS ASSOCIATION
BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the California Legislature in adopting the Parkin and
Business Improvement Area Law of 1980 (Streets and Highways-Code
§36500.) found that cities are authorized to levy assessments on busi-
nesses in order to promote economic revitalization and tourism, cre-
ate fobs, attract new businesses and prevent erosion of business dis-
tricts; and
The City Council formed a business improvement district, the Hun-
tington Beach Auto Dealers Association Business Improvement Dis-
trict the 'District9, by the passage of Ordinance 3175 on September
8, 144 ;he
and
Pursuant to a request from the Huntington Beach Auto Dealers As-
sociation, the City is proposing to disestablish the District pursuant to
the process detailed in Streets and Highways Code§36550,
NOW, THEREFORE, the City Council of the City of Huntington
Beach does hereby resolve as follows:
SECTION 1. The Ci}y Council proposes to disestablish the District
at the request of the District, because the assessments are no longer
required to finance the cost of the electronic readerboard.
SECTION 2. Attached to this Resolution of Intenttodisestablish the
District is a proposal to dispose of any assets acquired with the reve-
nues of the assessments levied within the parking and business im-
provement area.
SECTION 3. A public hearing shall be held -before the City Council
on December 4,2017,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 the proposed disestablish-
ment of the District.
SECTION 4. The City Clerk is hereby directed to provide notice of
the public hearing by publishing the Resolution of Intention in a news-
paper of general circulation in the City once, for at least seven days
before the public hearing; and to mail a complete copy of the Resolu-
tion of Intention by first-class mail to each business owner in the area
within seven days of the City Councils adoption of the Resolution of
I ntention to disestablish the District.
SECTION 5. Further information regardingg the proposed disestab-
lishment of the District may be obtained at the Huntington Beach
City Hall, 2000 Main Street, Huntington Beach, California 92649; tele-
phone (714) 536-5542.
SECTION 6. This Resolution shall take effect immediately upon
adoption.
PASSEDAND ADOPTED bytheCity Council of the Cityof Hynting-
iob er BD a7c_h at a regular meeting thereof held on the 6th day of hlovem-
Published: The Huntington Beach Wave November 23, 201711037751
2
Resolution No. 2017-51
CITY OF HUNTINGTON BEACH
PUBLIC NOTICE
PUBLIC HEARING FOR THE HUNTINGTON BEACH AUTO DEALER ASSOCIATION
BUSINESS IMPROVEMENT DISTRICT DISESTABLISHMENT
NOTICE IS HEREBY GIVEN THAT the City Council will hold its Public Hearing on the
Disestablishment of the Huntington Beach Auto Dealer Business Improvement District at its
meeting scheduled on December 4, 2017 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 the City Council in Resolution No. 2017-51 as
reprinted below:
RESOLUTION NO. 2017-51
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
DECLARING THE CITY'S INTENTION TO DISESTABLISH THE HUNTINGTON BEACH
AUTO DEALERS ASSOCIATION
BUSINESS IMPROVEMENT DISTRICT
WHEREAS, the California Legislature, in adopting the Parking and Business Improvement
Area Law of 1989 (Streets and Highways Code §36500.) found that cities are authorized to levy
assessments on businesses in order to promote economic revitalization and tourism, create jobs,
attract new businesses and prevent erosion of business districts; and
The City Council formed a business improvement district, the Huntington Beach Auto
Dealers Association Business Improvement District (the "District"), by the passage of Ordinance
3175 on September 8, 1992; and
Pursuant to a request from the Huntington Beach Auto Dealers Association, the City is
proposing to disestablish the District pursuant to the process detailed in Streets and Highways Code
§36550,
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve
as follows:
SECTION 1. The City Council proposes to disestablish the District at the request of the
District, because the assessments are no longer required to finance the cost of the electronic
readerboard.
SECTION 2. Attached to this Resolution of Intent to disestablish the District is a proposal
to dispose of any assets acquired with the revenues of the assessments levied within the parking and
business improvement area.
SECTION 3. A public hearing shall be held before the City Council on December 4, 2017,
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 the proposed disestablishment of the District.
Resolution No. 2017-51
SECTION 4. The City Clerk is hereby directed to provide notice of the public hearing by
publishing the Resolution of Intention in a newspaper of general circulation in the City once, for at
least seven days before the public hearing; and to mail a complete copy of the Resolution of
Intention by first-class mail to each business owner in the area within seven days of the City
Council's adoption of the Resolution of Intention to disestablish the District.
SECTION 5. Further information regarding the proposed disestablishment of the District
may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach,
California 92648; telephone (714) 536-5542.
SECTION 6. 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 6th day of November 2017.
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 November 9, 2017, 1 served the
foregoing documents(s) described as: City of Huntington Beach Public Hearing Notice—Public
Hearing for the Huntington Beach Auto Dealer Association Business Improvement District
Disestablishment and Resolution No. 2017-51, A Resolution of the City Council of the City of
Huntington Beach Declaring the City's Intention to Disestablish the Huntington Beach Auto
Dealers Association Business Improvement District on the interested parties in this action by
placing a true copy thereof in a sealed envelope addressed as follows:
11 Addresses—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 November 9, 2017, at Huntington Beach, California.
Deputy City Cl
vfollowup/letters/proof of mailing.doc
V A113AV-09-008-L ( �wdn-dod pjogej a!j818naj }uawa6jey-3 � 0 �09L5 A213AV}!aege6 a!zas!!!�n
WO AMAWnnnnnn ap u!�e wn4W4 e!a zai!da� ap 9a5 ; aa!ed a se!pe}sauanb!}3
H.B. Dodge Chrysler/Jeep Ram Huntington Beach Hyundai Norm Reeves Honda
Rick Evans/Pete Shaver Mehraban Khajehnouri Paul Conant/Carlton Fitzgerald
16701 Beach Blvd. 16751 Beach Blvd. 19131 Beach Blvd.
Huntington Beach, CA 92647 Huntington Beach, CA 92647 Huntington Beach, CA 92648
H.B. Mazda Surf City Nissan DeLillo Chevrolet
John Patterson/Jerry Hicks Larry Smith/Fred Angiuli Dave DeLillo/Bill Demarest
16800 Beach Blvd. 17331 Beach Blvd. 18211 Beach Blvd.
Huntington Beach, CA 92647 Huntington Beach, CA 92647 Huntington Beach, CA 92648
H.B. Surf City Ford McKenna VW of Huntington Beach Toyota of HB
Oscar Bakhtiari/Omar Ziaolhagh Danny McKenna/T Nguyen Bob Miller
18255 Beach Blvd. 18711 Beach Blvd. 18881 Beach Blvd.
Huntington Beach, CA 92648 Huntington Beach, CA 92648 Huntington Beach, CA 92648
Car Pros Kia of Huntington Beach David Garofalo
Ken Phillips/Juan Alacon 630 Main Street
18835 Beach Blvd Huntington Beach, Ca 92648
Huntington Beach, CA 92648
T 09L5 r r,ja6p3 do-dod esodxa jaded paad F @09L5 ale!dwal @Ajand asg
® ®�� of aq 6uo!e pua8 ® + sage,@!aad ASe3