Loading...
HomeMy WebLinkAboutHuntington Beach Automobile Dealer Business Improvement Dist REQUEST FOR CITY COUNCIL ACTION APPROVED BY CITY COUNCIL. ED 93-28 1- 6 19-. '""' Date July 6, 1993 rrY CLEKK Submitted to Honorable Mayor and City Council Members Submitted by Michael T Uberuaga, City Admmistratoraw Prepared by Barbara A Kaiser, Deputy City Administrator/Economic Develop en Subject A RESOLUTION APPROVING THE HUNTINGTON BEACH AUTO DEALERS BID REPORT FOR 1992/93 AND THE ANNUAL ASSESSMENT FOR 1993/94 Consistent with Council Policy9 [x ] Yes [ ] New Policy or]Exception , 5 a,3 Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attachments ��� STATEMENT OF ISSUE At the June 7, 1993 City Council Meeting, the Council approved Resolution 6485, a Resolution of the City of Huntington Beach to levy an assessment for the Huntington Beach Auto Dealers BID for 1993/94, and authorized the City Clerk to schedule a public hearing to be held on July 6, 1993 Copies of Resolution, BID Boundary Map, and assessment formula were sent to each business to be assessed The Council actions needed on this item are to hold the public hearing and take action on a resolution approving the 1992/93 BID Report and the Annual Assessment for 1993/94 RECOMMENDATION 1 Hold the public hearing 2 Adopt City Council Resolution No 6 So3 A Resolution of the City Council of the City of Huntington Beach approving the Huntington Beach Auto Dealers BID Report for 1992/93 and to levy a BID Assessment for 1993/94 ANALYSIS In fiscal year 1992/93 the Huntington Beach Automobile Dealers Association requested the City Council to form a Business Improvement District (BID) to fulfill their obligations to operate and maintain the electronic reader board The obligations of the HBADA are listed in the r RESOLUTION NO 6503 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING THE HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT REPORT FOR 1992-93 AND TO APPROVE AN ANNUAL ASSESSMENT FOR THE FISCAL YEAR 1993-94 TO FUND IMPROVEMENTS WITHIN THE DISTRICT WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at Streets and Highways Code Section 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, Huntington Beach Auto Dealers 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 1993-94 by approving the Huntington Beach Auto Dealers 1992-93 Annual Report and by approving assessments for the 1993-94 fiscal year on those businesses that benefit from the programs and facilities provided NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows SECTION 1 The City Council of the City of Huntington Beach hereby declares a change in the boundaries of the District by adding two additional new car dealers as recommended in the 1992-93 Annual Report and as reflected in Exhibit A-1 and A-2 - 1 - SECTION 2 Further, the City Council authorizes a levy and the collection of assessments within the District for fiscal year 1993-94 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 businesses of that classification located within the District as shown in Exhibits A-1 and A-2, in the amounts set forth on Exhibit B-1, which Exhibits are incorporated herein by reference SECTION 3 The assessments collected will be used to cover costs to operate and maintain an electronic reader board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue SECTION 4 Exhibits B-1 and B-2 provides the budget and items which describe the activities of the District and the amount to be assessed to those businesses within the District SECTION 5 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 July 1993 �j !11re .� Mayor AT41: ST APPROVED ASTO FORM t,3 City Clerk -2V-' -n',City Attorney IEW D AND INITIATED AND APPROVED City A minis rator Director of Economic Development 2 - 6503 Res No 6503 STATE OF CALIFORNIA COUNTY OF ORANGE ss CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, 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 the 6th day of July 1993 by the following vote AYES Councilmembers ROBITAILLE, BAUER, MOULTON-PATTERSON, IJINCHELL, SILVA, SULLIVAN, LEIPZIG NOES Councilmembers NONE ABSENT Councilmembers NONE Lity WerFand ex-officTt Werk— of the City Council of the City of Huntington Beach, California Exhibit A-1 Huntington Beach BLVD Of CARS Reader Board Site Huntington `40� Cente Edinger Dodge U Chrysler-Plymouth-Hyundai Jeep Eagle Lincoln Mercury arner Oldsmobile-Mazda ci Slater Talbert Chevrolet ° Ford Ellis Volkswagen/Isuzu Nissan/Saturn ° Toyota Garfield Acura Honda/Mitsubishi 03 CD 100 May 1993 Exhibit A-2 HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOC/AT/ON, INC 1 Clay James 6 Dave De Lillo/Bill Demarest Huntington Beach Dodge De Lillo Chevrolet 16555 Beach Boulevard 18211 Beach Boulevard Huntington Beach, CA 92647 Huntington Beach, CA 92647 (714) 847-5515 (714) 847-6087 FAX# 842-7408 FAX# 847-6721 2 Charles Barker 7 Ed Coscolluela Huntington Beach Chrysler- Terry York Ford Plymouth and Hyundai 18255 Beach Boulevard 16661 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842-6611 (714) 842-0631 FAX# 847-8788 FAX# 843-5857 8 Danny McKenna/Don Stephens 3 Rick Evans South County Volkswagen/Isuzu Huntington Jeep Eagle 18711 Beach Boulevard 16751 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842-2000 (714) 841-3999 FAX# 841-7819 FAX# 841-4848 9 Frank D'Agostino 4 Chet Clark Campbel Nissan/Saturn Beach Lincoln-Mercury 18835 Beach Boulevard 16800 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842 7781 (714) 848-7739 FAX# 848-6569 FAX# 847-1265 10 Jack Caswell 5 Jarrett J Kuske Bill Maxey Toyota Beach Motors 18881 Beach Boulevard Oldsmobile-Mazda Huntington Beach, CA 92648 17331 Beach Boulevard (714) 847 8555 Huntington Beach CA 92647 FAX# 841 9857 (714) 842-6666 FAX# 847 0759 Exhibit A-2 11 Dan Powers Huntington Beach Acura 19131 Beach Boulevard Huntington Beach, CA 92648 (714) 842-0095 FAX# 841-3524 12 Roger Miller Roger Miller Honda/Mitsubishi 19232 Beach Boulevard Huntington Beach, CA 92646 (714) 963-1965 FAX# 964-7495 13 Reader Board Sign Site City of Huntington Beach 7991 Center Avenue Huntington Beach, CA 92647 Mail to Barbara A Kaiser, Director Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 TA sar a autodeal 05/13/93 ED 93-28 July 6, 1993 Page Two Development and Disposition Agreement that is on file in the City Clerk's office The BID was formed in September 1992 by Ordinance 3175, which is also on file in the Clerk's office Due to the fact that the sign will not be completed until the very end of 1992/93, no funds were collected or spent by the BID The 1992/93 Annual Report shows no funds collected and no funds spent, proposes the additions of two dealers (Huntington Beach Chrysler-Plymouth and Beach Motors Oldsmobile-Mazda) and a revised assessment formula All of the dealers that plan to assess themselves have agreed to fully support the BID FUNDING SOURCE The funds for printing, and mailing are available in the Huntington Center Redevelopment Project Budget for 1993/94 ALTERNATIVE ACTION Revise the 1992/93 Annual Report Deny the request to approve the Resolution approving the Report and the levying of an annual assessment ATTACHMENTS 1 1992/93 Annual Report - H B Auto Dealers BID 2 Resolution to approve the 1992/93 Annual Report and a 1993/94 Assessment MTU/BAK/TA sar a 93-28 HUNTINGTON BEACH AUTOMOBILE DEALERS \,�� 16 ASSOCIATION, INC May 10, 1993 Ms Barbara Kaiser Deputy City Administrator/Economic Development (ity of Huntington Beach 9000 Main St Huntington Beach, Ca 92648 RE Annual report 1992-1993 and request for renewal of Huntington Beach Auto Dealers Business Improvement District for the 1993-1994 fiscal year Dear Ms Kaiser The reader board sign construction began in January, 1993 Construction will be completed and the sign operational in June 1993 Due to the fact that the sign was not finished, our business improvement district does not have an annual report for 1992-1993 fiscal year We request renewal for our Business Improvement District for fiscal 1993-1994 Enclosed is our proposed budget for 1993-1994 fiscal year We also request that two dealers be added Charles Barker Huntington Beach Chrysler-Plymouth and Hyundai 16661 Beach Blvd Huntington Beach, Ca 92647 Jerrold Kuske Beach Oldsmobile-Mazda 17331 Beach Blvd Huntington Beach, Ca 92647 Sincerely, David DeLhC/lGl/oG/' President DD/sh encl 110 Box 2700 a Huntington lac ach California 92C 17 PROPOSED BUDGET 1993-1994 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET 1992-'93 Director Sign Trust Account(for sixty months)$52200 $52200 Sign Maintenance(including electricity) 43800 48000 Administrative Costs(dealers) 30000 24000 Property Tax 3610 3600 Insurance Costs 4000 6000 Collection/Disbursement Costs 4000 3000 (City/Bank) TOTAL EXPENSES $137610 $136800 COST PER MEMBER( 12) Annual $11468 Per Month $956 After 60 months $593 EXPLANATION OF HBADA B I D BUDGET ACCOUNTS *SIGN TRUST--TRUST ACCOUNT IN LOCAL HUNTINGTON BEACH BANK ACOUNT TO GAURANTEE CITY THE MONEY THAT DEALERS WILL PAY IF AS A GROUP THEY DO NOT INCREASE SALES TAX $261,000 OVER THE BASE YEAR OF 1991 IN A FIVE YEAR PERIOD STARTING WHEN THE SIGN BECOMES OPERATIONAL *MAINTENANCE==MONTHLY PAYMENT TO ELECTRA-MEDIA FOR MAINTAINING AND PROGRAMMING THE SIGN PLUS ELECTRIC BILL *ADMINISTRATIVE COSTS- EXPENSES ( INCLUDING OFFICE RENT, AS REQUIRED BY CALTRANS) TO OPERATE THE ASSOCIATION **PROPERTY TAX--PAID TO THE COUNTY OF ORANGE **INSURANCE-- PUBLIC LIABILITY, PROPERTY ETC AS REQUIRED BY THE CITY *COLLECTION/DISBURSEMENT COSTS-- ADMINISTRATIVE FEE TO THE CITY, DISBURSEMENT COSTS TO TIEMPO ESCROW *MONTHLY DEDUCTED FROM ASSOCIATION CHECK OR PAID BY ESCROW COMPANY **ANNUAL PAYMENTS Abj �� 9= Huntingtonr l r - Plymouth Fc=HRSLhR 16661 Beach Boulevard Huntington Beach CA 92647 Phone (714) 842 0631 (213) 435 0805 M= FAX (714) 843 5857 May 10, 1993 Barbara Kaiser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, CA 92648 Dear Ms Kaiser , We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establis a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer?Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of $361 ,000 The city will provide payment of the sign, forgiving the first $ 100 ,000 The dealers are responsible for and increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $363 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired , and the trust refunded to the Dealers Each to receive his contribution plus interest AUTHORU10 OEAIfR ® CH R g SLER CORPORATION 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4,000 00 per month including electricity My present estimated cost is $400 00 per month 3 The Cit /'Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the Reader Sign Project as a portion of many joint programs to improve the City' s economic base and a city to do business in Sincerely, Charles Barker President/Owner Barbara Kaiser Deputy City Administrator Economic Development 2000 Main Street fHuntington Beach, CA 92648 t May 10, 1993 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting (including dues), billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of$361,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of$261,000 over a five year period My present estimated cost will be $363 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation ',as been fulfilled, the guarantee period will be considered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest r 2 The Dealers will sign a maintenance and programming agreement with Electra-Media for sixty months The cost will be$4,000 00 per month including electricity My present estimated cost is $400 00 per month Oldsmobile ® Mazda 17 331 BEACH BOULEVARD HUNTINGTON BEACH CA 92647 (714) 842 6666 Page 2 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond ttus term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City's economic base and a city to do business in Sincerely, Jarrett J Kuske Exhibit B-1 ASSESSMENT FORMULA AND BUDGET 1993-1994 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS UYIPROVEMENT DISTRICT Director Sign Trust Account (for sixty months) $52200 Sign Maintenance (including electricity) 43800 Administrative Costs (dealers) 30000 Property Tax 3610 Insurance Costs 4000 Collection/Disbursement Costs 4000 (City/Bank) TOTAL EXPENSES $137610 COST PER MEMBER (12) Annual $11468 Per Month $956 After 60 months $593 * Business owners with multiple dealerships at the same location or adjacent locations having a common method of access and egress shall pay one benefit assessment fee * Business owners with multiple dealerships at multiple non-adjacent locations shall be assessed for each such location Exhibit B-2 EXPLANATION OF HBADA B I D BUDGET ACCOUNTS * SIGN TRUST--TRUST ACCOUNT IN LOCAL HUNTINGTON BEACH BANK ACCOUNT TO GUARANTEE CITY THE MONEY THAT DEALERS WELL PAY IF AS A GROUP THEY DO NOT INCREASE SALES TAX$261,000 OVER THE BASE YEAR OF 1991 IN A FIVE YEAR PERIOD STARTING WHEN THE SIGN BECOMES OPERATIONAL *MAINTENANCE--MONTHLY PAYMENT TO ELECTRA-MEDIA FOR MAINTAINING AND PROGRAMMING THE SIGN PLUS ELECTRIC BILL *ADMINISTRATIVE COSTS-EXPENSES (INCLUDING OFFICE RENT, AS REQUIRED BY CALTRANS) TO OPERATE THE ASSOCIATION **PROPERTY TAX--PAID TO THE COUNTY OF ORANGE **INSURANCE--PUBLIC LIABILITY, PROPERTY ETC AS REQUIRED BY THE CITY *COLLECTION/DISBURSEMENT COSTS--ADMINISTRATIVE FEE TO THE CITY, DISBURSEMENT COSTS TO TIEMPO ESCROW *MONTHLY DEDUCTED FROM ASSOCIATION CHECK OR PAID BY ESCROW COMPANY *ANNUAL PAYMENTS P_ PUBLIC NOTICE PUBLIC HEARING SCHEDULED 7/6/93 RESOLUTION NO 6485 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO b LEVY AN ANNUAL I ) ASSESSMENT FOR STATE OF CAILIFORNIA 19FISCAL YEAR ( (� 93 94 TO FUND IMPROVEMENTS WITHIN THE ri HUNTINGTON BEACH County of Orange d AUTO DEALERS I' IMPROVEMENT I am a Citizen of the United States and a WHEREAS ReTt Parking and Business Improvement {t�/ resident of the County aforesaid, I am over the Area Law of 1989 codified J at Streets and Highways age of eighteen years, and not a party to or Code Section 36500 et seq (the Act )authorizes cities Interested In the below entitled matter I am a to establish parking and v- business improvement principal clerk of the HUNTINGTON BEACH areas for the purpose of imposing benefit assess INDEPENDENT, a newspaper of general merits certain purposes oses and for nd arculatlon, printed and published In the City of The City Council has formed a business im Huntington Beach, County of Orange, State of provement area Hunting ton Beach Auto Dealers SECTIO — A pubhc� Business Improvement Dis 1 he I be held be Carifomia and that attached Notice Is a true and tact (the District ) by the re the Ci Council on passage of Ordinance 3175 June 6 19 at 7 00 p m er asi complete copy as was printed and published in on has cometember 8to continue 1992 or as tter may befthea d the Huntington Beach and Fountain Valley the existence of the Distnctl in the Council Chambers of for fiscal year 1993-94 byi the City Hall 200D Main Issues of said newspaper to wit the issue(s) of levying assessments on Street Huntington Beach those businesses that ben California at which time efit from the improvements the Council will hear all in constructed terested persons for or NOW THEREFORE theJ against the continuation of City Council of the City of the District the extent ofl Huntington Beach does the District and the fur hereby resolve determine f nishing of specified types) and find as follows (of improvements or active SECTION 1 The City (ties Protests may be made Council of the City of Hun orally or in writing but rfl June 17, 1993 tington Beach hereby de-1 written shall be filed with clares its intent to change the City Clerk at or before the boundaries of the Dis the time fixed for the hear tact by adding two ad ing and contain sufficient ditional new car dealers as documentation tc verify recommended in the 1992 business ownership and 93 Annual Report and as validate the particular pro reflected in Exhibit A 1 and test If written protests are A 2 received by the owners of SECTION 2 Further it is businesses within the Dis the intention of the City trict which will pay 50/ or Council to levy and collect more of the total assess assessments within the ments to be levied no fur District for fiscal year 1993 ther proceedings to estab 94 The levy is to apply to lash the District shall be small businesses classified taken for a period of one at at least seven days be by the City of Huntington year from the date of the y y Beach License Code as finding of a majority protest fore the public hearing 11 Class A Retail Sales (At) by the City Council If the SECTION 8 The City Auto New Used Parts in majority protest is only Clerk shall mail a complete cluding new businesses of against the furnishing of a copy of this resolution of declare, under penalty of perjury, that the that classification located specified type or types of i intention by firstclass mail within the District as shown improvements or activity to each business owner lin within the D'stnct those the area within seven days foregoing Is true and correct. on Exhibits A 1 and A 2 in types of improvements or after the Council s adoption the amounts set forth on activities shad be ekmi of this resolution I Exhibit B 1 which Exhibits nated SECTION 9 This resolu q are incorporated herein by tion shall take effect im June 17 199 3 reference I SECTION 6 Further infor Executed on — r 1 matron regarding the pro mediately upon adoption SECTION 3 The assess Location map on file in at Costa Me Californiaments collected will be l posed business im I City Clerks Office used to cover costs to op provement district may t>e PASSED AND ADOPTED erate and maintain an elec I obtained at the Huntington by the City Council of the tronc reader board located Beach City Hall 2000 Main City of Huntington Beachlat wrthin the City of Hunting Street Huntington Beach a regular meeting thereof ton Beach west of the inter California 92648 telephone held regular the tin day lof section of Beach Boulevard Hunt 5gt n a from the June 1993 1 SI nature and Center Avenue Huntington Beach Auto g SECTION 4 Exhibits B 1 Dealers Association Inc /s/ GRACE WINCH and B 2 provides the bud P O Box 2700 Huntington ELL Mayor get and items which de Beach CA 92648 tele ATTEST C O N N 1 E 1 scribe the activities of the phone(714)831 8458 BROCKWAY City Clerk District and the amount to SECTION 7 The City Published Huntington be assessed to those buss Clerk will have this resolu I Beach Fountain Valley In nesses within the District tion of intention to be pub dependent June ley I This information will be on fished once in a newspaper, 11 Mile w the Gy of general circulation in the 062 641 ith t Clerk --- PROOF OF PUBLICATION PUBLIC NOTICE ) PUBLIC HEARING a SCHEDULED 7/6/93 � "•= RESOLUTION NO 6485 Ile A RESOLUTION OF THE CITY OF HUNTINGTON BEACH I DECLARING ITS INTENTION TO STATE OF CALIFORNIA A LEVY SSES S ANNUAL SMENT FOR FISCAL YEAR 1993 94 TO FUND County of Orange IMPROVEMENTS WITHIN THE i HUNTINGTON BEACH AUTO DEALERS IMPROVEMENT I am a Citizen of the United States and a DISTRICT WHEREAS the Parking resident of the County aforesaid, I am over the and Business Improvement Area Law of 1989 coditied y " age of eighteen years, and not a party to or at Streets and Highways Code Section 36500 et seq '0(� interested in the below entitled matter I am a (the Act )authorizes cities to establish parking and principal clerk of the HUNTINGTON BEACH business improvement areas for the purpose of INDEPENDENT, a newspaper of general imposing benefit assess ments on businesses for �d circulation, p "'a published and u�blished in the City of certain purposes and The City Council has Huntington Beach Countyof Orange, State of formed a business im —SE �( r9 provement area Hunting CTION 5 A public �y ton Beach Auto Dealers hearing Shall be held be 4(YFt f Carifomia and that attached Notice is a true and Business Improvement Dis for6'the City Council on tric4 (the District ) by the June 6 1993 at 7 00 p m complete copy as was printed and published in passage of Ordinance 3175 (or a soon thereafter as on September 8 1992 (he `! t—mdtter may be heard the Huntington Beach and Fountain Valley time has come to continue in the Council Chambers of the existence of the District the City Nall 2000 Main issues of said newspaper to wit the issue(s) of for fiscal year 199394 by Street Huntington BeaLh i + levying assessments on California at which me � + those businesses that ben the Council will hear all in efit from the improvements terested persons for or constructed against the continuation of NOW THEREFORE the the District the extent of City Council of the City of the District and the fur Huntington Beach does nishing of specified types hereby resolve determine of improvements or active and find as follows ties Protests may be made June 17 1993 SECTION 1 The City orally or in writing but if Council of the City of Hun written shall be filed with tington Beach hereby de- the City Clerk at or before clares its intent to change the time fixed for the hear the boundaries of the Dis ing and contain sufficient tact by adding two ad i documentation to verify ddional new car dealers as business ownership and) recommended in the 1992 validate the particular pro 93 Annual Report and asi test If written protests are reflected in Exhibit A 1 and received by the owners oft A 2 businesses within the Dis SECTION 2 Further it is[ trict which will pay 50/ or the intention of the City, more of the total assess Council to levy and collect ments to be levied no fur assessments within the ther proceedings to estab District for fiscal year 1993 1 lish the District shall be 94 The levy is to apply tol taken for a period of one small businesses classified year from the date of the city at least seven days be by the City of Huntington finding of a majority protest fore the public hearing Beach License Code as by the City Council If the SECTION 8 The City Class A Retail Sales (At) majority protest is only Clerk shall mail a complete Auto New Used Parts in against the furnishing of al copy of this resolution l'of declare, under penalty of perjury, that the ( cluding new businesses of specified type or types ofl intention by firstclass mail rthat classification located improvements or activity to each business ownerl�in foregoing is true and correct. in the District as shown within the District those the area within seven days xhibits A l and A 2 intypes of improvements or after the Council s adoption amounts set forth on activities shall be elimi of this resolution �99.� lExhibit B 1 which Exhibits Hated SECTION 9 This resolu Executed on June 17 3 are incorporated herein by SECTION 6 Further i pro me shall take effect im matron regarding the pro mediately upon adoption Ireference posed business im Location map on filelin SECTION 3 The assess at Costa IVIeS alifomia provement district may be City Clerk s Office merits collected will be obtained at the Huntington PASSED AND ADOPTED used to cover costs to op Beach City Hall 2000 Main to by the City Council of the erate and maintain Street Huntington Beach City of Huntington Beach,at tropic reader board located,within the City of Hunting California 92648 telephone a regular meeting thereof 71q 536 5582 or from the held on the 7th day Iof Signature ton Beach west of the inter ( ) section of Beach Boulevard Huntington Beach Auto June 1993 and Center Avenue Dealers Association Inc /s/ GRACE WINCH SECTION 4 Exhibits B 1 P O Box 2700 Huntington ELL Mayor ,I and B 2 provides the bud I Beach CA 92648 tele ATTEST C O N N I E get and items which de phone(714)831 8458 BROCKWAY City Clerk scribe the activities of thel SECTION 7 The City District and the amount to Clerk will have this resolu Published Huntington Beach Fountain Valley Iln be assessed to those buss tion of intention to be pub nesses within the District I lished once in a newspaper dependent June 17 1993 This information will N on of general circulation in the 062 641 file with the City Clerk -- ----�` PROOF OF PU8L1c.A1-1UN d" t STATE OF CAUFORNIA County of Orange I am a Citizen of the United States and a (amended publication) resident of the County aforesaid, I am over the age of eighteen years, and not a party to or _ __� _ PUBLIC NOTICE i SECTION 2 Further it is taken for a period of one Interested In the below entitled matter I am a I the intention of the City year from the date of the PUBLIC HEARING Council to levy and collect finding of a majority protest principal clerk of the HUNTINGTON BEACH e , cifhe SCHEDULED 7/6/93 assessments within the District for fiscal year 1993 m the C y Council i! !f the RESOLUTION Y majority protest is only INDEPENDENT, a newspaper of genera NO 6485 94 The levy is to apply to I v P f Y circulation, printed and published in the City of small businesses classified against the furnishing of a A RESOLUTION OF specified type or types i of by the City of Huntington THE CITY OF improvements or activity Beach License Code as Huntington Beach, County of Orange, State of HUNTINGTON BEACH Class A Retail Sales (Al) within the District those types DECLARING ITS Auto New Used Parts in Pes of improvements I Carifomia, and that attached Notice is a true and INTENTION TO eluding new businesses of I cited ies shall be ekii LEVY AN ANNUAL that classification located I oECTION 6 Further inf+r complete copy as was punted and publish within the District as shown in � ASSESSMENT FOR matron regarding the pro the Huntington Beach and Fountain Valle FISCAL YEAR on Exhibits s 1 and A in posed business im the amounts set forth on 9993 94 TO FUND provement district may The Exhibit B 1 which Exhibits obtained at the Huntington issues of said newspaper to wit the issue(s)of IMPROVEMENTS are incorporated herein by WITHIN THE reference Beach Ct y Hall Main HUNTINGTON BEACH SECTION 3 The assess Street Huntingtonn Beacri AUTO DEALERS ments collected will be California 55848 telephone IMPROVEMENT used to cover costs to op- Hunt ngt 5582 or from the crate and maintain an elec Huntington Beach Auto DISTRICT tronic reader board located Dealers Associa n Inc WHEREAS the Parking Hunting P O Box 2700 Huntington within the City and Business Improvement Y of g Beach CA 92648 tole Area Law of 1989 codified June 17 r 1993 ton Beach west of the inter section of Beach Boulevard Phone(714)831 8458 11 h at Streets and Highways SECTION 7 The City June 24, 1993 (amended) Code Section 36500 et seq and Center Avenue Clerk will have this reso u (the Act )authorizes cities SECTION 4 Exhibits B 1 tion of intention to be pub to establish parking and and B-2 provides the bud P g et and items which de- fished once i a newspaper business improvement g of general circulation in the areas for the purpose of scribe the activities of the city at least seven days be imposing benefit assess District and the amount to fore the public hearing 1i ments on businesses for l be assessed to those bust SECTION 8 The City certain purposes and nesses within the District Clerk shall mail a complete The City Council has This information will be on copy of this resolution)of formed a business im file with the City Clerk intention by first class mad provement area Hunting I SECTION 5 A public to each business ownerll in ton Beach Auto Dealers hearing shall be held be- the area within seven days Business Improvement Dis fore the City Council on p after the Council s adoption tract the District b the July 6 1993 at 7 00 p m ( ) Y or as soon thereafter as of this resolution passage of Ordinance 3175 SECTION 9 This resolu on September 8 1992 The this matter may be heard tion shall take effect im time has come to continue in the Council Chambers of mediately upon adoptionit the existence of the District the City Hall 2000 Main Location map on file�l in for fiscal year 199394 by Street Huntington Beach City Clerk s Office levying assessments on California at which time PASSED AND ADOPTED those businesses that ben the Council will hear all in by the City Council of the efit from the improvements terested persons for or City of Huntington Beach at I declare, under penalty of pegury, that the constructed against the continuation of a regular meeting thereof NOW THEREFORE the the District the extent of held on the 7th day�of foregoing is true and correct City Council of the City of the District and the fur June 1993 Huntington Beach does nishing of specified types /s/ GRACE WINCH hereby resolve determine of improvements or active ( ELL Mayor and find as follows i ties Protests may be made Executed on June 24 , 199 3 SECTION 1 The City orally or in writing but if ATTEST CONNwIE Council of the City of Hun written shall be filed with BROCKWAY,City Clerk a2 Costa74—, a, Carfomia tington Beach hereby de the City Clerk at or before Published Huntington Glares its intent to change the time fixed for the hear l Beach Fountain Valley Ifn c the boundaries of the Dis ing and contain sufficient dependent June 17 1993 tract by adding two ad documentation to verity Amended publication ditional new car dealers as business ownership and Huntington Beach Fountain recommended in the 1992 i�validate the particular pro Valle g Independent June 93 Annual Report and as test If written protests are Y P i Signature reflected in Exhibit A 1 and received by the owners of 24 1993 it L-4-2 —__ businesses within the D s f 062 641 !tnct which will pay 50/ or L __v more of the total assess ments to be levied no fur ther proceedings to estab lish the District shall be PROOF OF PUBLICATION Q osa Goc, Q LTEST FORCITY C®iJl®1II, CTI®N JVED BY CITI —_.. � — 7 � —19 9S ED 93-17 ',M' Q CITY CLER 9 — 1 Date June 7. 1993 Submitted to Honorable Mayor and City Council Members Submitted by Michael T Uberuaga, City Admmistrat r Prepared by Barbara A Kaiser, Deputy City Administrator/Economic Development Subject 1992-93 ANNUAL REPORT HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT AND RESOLUTION OF INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR THE 1993-94 FISCAL YEAR Consistent with Council Pohcy9 M Yes [ ]New Policy or Exception le� :7�6 Statement of Issue, Recommendation, Analysis, Funding Source, Alternative Actions, Attac nts STATEMENT OF ISSUE At the September 8, 1992 City Council Meeting, the Council approved Ordinance 3175 which established the Huntington Beach Auto Dealers Business Improvement District (BID) as a method of fee setting (including dues), billing and collections relative to costs of construction, operation, creating a trust fund and maintenance of the electronic reader board sign The Parking and Business Improvement Law 1989 requires that an Annual Report be filed for each fiscal year and that a resolution of intention be passed to levy an assessment for the next fiscal year (1993-94), which includes setting a public hearing date RECOMMENDATION 1 Approve the Huntington Beach Auto Dealers Business Improvement District Annual Report for 1992-93 2 Adopt City Council Resolution No 64W5, a Resolution of the City of Huntington Beach to levy an assessment for the Huntington Beach Auto Dealers BID for 1993-94 In addition, direct the City Clerk to schedule a public hearing to be held on July 6, 1993 and send copies of the Resolution, BID Boundary Map, and assessment formula to each business to be assessed ANALYSIS In fiscal year 1992/93 the Huntington Beach Automobile Dealers Association requested the City Council to form a Business Improvement District (BID) to fulfill their obligations to operate and maintain the electronic reader board The obligations of the HBADA are listed in the Development and Disposition Agreement that is on file in the City Clerk's office The BID was formed in September 1992 by Ordinance 3175, which is also on file in the Clerk's office Due to the fact that the sign will not be completed until the very end of 1992-93, no funds were collected or spent by the BID The 1992-93 Annual Report shows no funds collected and no funds spent, proposes the additions of two dealers (Huntington Beach Chrysler-Plymouth and Beach Motors Oldsmobile-Mazda) and a revised assessment formula All of the dealers that plan to assess themselves have agreed to fully support the BID FUNDING SOURCE The funds for printing, and mailing are available in the Huntington Center Redevelopment Project Budget for 1992-93 ALTERNATIVE ACTION Revise the 1992-93 Annual Report of the Huntington Beach Auto Dealers BID Deny the request to approve the Resolution of Intent ATTACHMENTS 1 1992-93 Annual Report - H B Auto Dealers BID 2 Letters from Beach Motors Oldsmobile-Mazda and Huntington Beach Chrysler- Plymouth 3 Resolution of Intent to Levy an Assessment 1993-94 MTU/BAK/TA sar a rcaauto HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOCIATION, INC May 10, 1993 Ms Barbara Kaiser Deputy City Administrator/Economic Development City of Huntington Beach 2000 Main St Huntington Beach, Ca 92648 RE Annual report 1992-1993 and request for renewal of Huntington Beach Auto Dealers Business Improvement District for the 1993-1994 fiscal year Dear Ms Kaiser The reader board sign construction began in January, 1993 Construction will be completed and the sign operational in June 1993 Due to the fact that the sign was not finished, our business improvement district does not have an annual report for 1992-1993 fiscal year We request renewal for our Business Improvement District for fiscal 1993-1994 Enclosed is our proposed budget for 1993-1994 fiscal year We also request that two dealers be added Charles Barker Huntington Beach Chrysler-Plymouth and Hyundai 16661 Beach Blvd Huntington Beach, Ca 92647 Jerrold Kuske Beach Oldsmobile-Mazda 17331 Beach Blvd Huntington Beach, Ca 92647 Sincerely, David DeLillo President DD/sh encl PO Box 2700 • Hunfington Beach California 92647 PROPOSED BUDGET 1993-1994 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET 1992-'93 Director Sign Trust Account(for sixty months)$52200 $52200 Sign Maintenance(including electricity) 43800 48000 Administrative Costs(dealers) 30000 24000 Property Tax 3610 3600 Insurance Costs 4000 6000 Collection/Disbursement Costs 4000 3000 (City/Bank) TOTAL EXPENSES $137610 $136800 COST PER MEMBER(12) Annual $11468 Per Month $956 After 60 months $593 EXPLANATION OF HBADA B I D BUDGET ACCOUNTS *SIGN TRUST--TRUST ACCOUNT IN LOCAL HUNTINGTON BEACH BANK ACOUNT TO GAURANTEE CITY THE MONEY THAT DEALERS WILL PAY IF AS A GROUP THEY DO NOT INCREASE SALES TAX $261, 000 OVER THE BASE YEAR OF 1991 IN A FIVE YEAR PERIOD STARTING WHEN THE SIGN BECOMES OPERATIONAL *MAINTENANCE==MONTHLY PAYMENT TO ELECTRA-MEDIA FOR MAINTAINING AND PROGRAMMING THE SIGN PLUS ELECTRIC BILL *ADMINISTRATIVE COSTS- EXPENSES (INCLUDING OFFICE RENT, AS REQUIRED BY CALTRANS) TO OPERATE THE ASSOCIATION **PROPERTY TAX--PAID TO THE COUNTY OF ORANGE **INSURANCE-- PUBLIC LIABILITY, PROPERTY ETC AS REQUIRED BY THE CITY *COLLECTION/DISBURSEMENT COSTS-- ADMINISTRATIVE FEE TO THE CITY, DISBURSEMENT COSTS TO TIEMPO ESCROW *MONTHLY DEDUCTED FROM ASSOCIATION CHECK OR PAID BY ESCROW COMPANY **ANNUAL PAYMENTS FBarbara Kaiser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, CA 92649 May 10, 1993 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting (including dues), billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of$361,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of$261,000 over a five year period My present estimated cost will be $363 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation ':as been fulfilled, the guarantee period w 11 be cons,dered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maintenance and programming agreement with Electra-Media for sixty months The cost will be$4,000 00 per month including electricity My present estimated cost is $400 00 per month Oldsmobile e Mazda 17331 BEACH BOULEVARD HUNTINGTON BEACH CA 92647 (714) 842 6666 Page 2 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City's economic base and a city to do business in Sincerely, Jarrett J Kuske VID Huntington Beach Chrysler ® Plymouth FcHRYSLhR 16661 Beach Boulevard Huntington Beach CA 92647 Phone (714) 842 0631 (213) 435 0805 FAX (714) 843 5857 May 10, 1993 Barbara Kaiser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, CA 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establis a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer?Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of $361 ,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $363 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired , and the trust refunded to the Dealers Each to receive his contribution plus interest Offn a MORM �pO AUTHORIZED DEALER V� LER CORPORATION 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4,000 00 per month including electricity My present estimated cost is $400 00 per month 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the Reader Sign Project as a portion of many joint programs to improve the City ' s economic base and a city to do business in Sincerely, Charles Barker President/Owner D HUNTINGTON BEACH U_ D AUTOMOBILE DEALERS 14U } f,=Y ASSOCIATION, INC ; May 10, 1993 Ms Barbara Kaiser Deputy City Administrator/Economic Development City of Huntington Beach 2000 Main St Huntington Beach, Ca 92648 RE Annual report 1992-1993 and request for renewal of Huntington Beach Auto Dealers Business Improvement District for the 1993-1994 fiscal year Dear Ms Kaiser The reader board sign construction began in January, 1993 Construction will be completed and the sign operational in June 1993 Due to the fact that the sign was not finished, our business improvement district does not have an annual report for 1992-1993 fiscal year We request renewal for our Business Improvement District for fiscal 1993-1994 Enclosed is our proposed budget for 1993-1994 fiscal year We also request that two dealers be added Charles Barker Huntington Beach Chrysler-Plymouth and Hyundai 16661 Beach Blvd Huntington Beach, Ca 92647 Jerrold Kuske Beach Oldsmobile-Mazda 17331 Beach Blvd Huntington Beach, Ca 92647 Sincerely, David DeL 6 President DD/sh encl r 4 PO Box 2700 ® Huntington Beach California 92647 �✓ PROPOSED BUDGET 1993-1994 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT BUDGET 1992-'93 Director Sign Trust Account(for sixty months) $52200 $52200 Sign Maintenance(including electricity) 43800 48000 Administrative Costs(dealers) 30000 24000 Property Tax 3610 3600 Insurance Costs 4000 6000 Collection/Disbursement Costs 4000 3000 (City/Bank) TOTAL EXPENSES $137610 $136800 COST PER MEMBER( 12 ) Annual $11468 Per Month $956 After 60 months $593 EXPLANATION OF HBADA B I D BUDGET ACCOUNTS *SIGN TRUST--TRUST ACCOUNT IN LOCAL HUNTINGTON BEACH BANK ACOUNT TO GAURANTEE CITY THE MONEY THAT DEALERS WILL PAY IF AS A GROUP THEY DO NOT INCREASE SALES TAX $261, 000 OVER THE BASE YEAR OF 1991 IN A FIVE YEAR PERIOD STARTING WHEN THE SIGN BECOMES OPERATIONAL *MAINTENANCE==MONTHLY PAYMENT TO ELECTRA-MEDIA FOR MAINTAINING AND PROGRAMMING THE SIGN PLUS ELECTRIC BILL *ADMINISTRATIVE COSTS- EXPENSES ( INCLUDING OFFICE RENT, AS REQUIRED BY CALTRANS) TO OPERATE THE ASSOCIATION **PROPERTY TAX--PAID TO THE COUNTY OF ORANGE **INSURANCE-- PUBLIC LIABILITY, PROPERTY ETC AS REQUIRED BY THE CITY *COLLECTION/DISBURSEMENT COSTS-- ADMINISTRATIVE FEE TO THE CITY, DISBURSEMENT COSTS TO TIEMPO ESCROW *MONTHLY DEDUCTED FROM ASSOCIATION CHECK OR PAID BY ESCROW COMPANY **ANNUAL PAYMENTS Barbara Kayser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, CA 92649 May 10, 1993 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting (including dues), billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of$361,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of $261,000 over a five year period My present estimated cost will be $363 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as ha* obl,gatio•i '-as been fulfilled, tre gaarartee period %vile be considered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maintenance and programming agreement with Electra-Media for sixty months The cost will be $4,000 00 per month including electricity My present estimated cost is $400 00 per month Dgo D Oldsmobile © Mazda 17331 BEACH BOULEVARD HUNTINGTON BEACH CA 92647 (714) 842 6666 Page 2 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City's economic base and a city to do business in Sincerely, r Jarrett J Kuske 1k W�4 Hudhgtoo Beach chryzNr - p0YMMh FCH RYS ER 16661 Beach Boulevard Huntington Beach CA 92647 ()CMlFRFJQd Phone (714) 842 0631 (213) 435 0805 FAX (714) 843 5857 May 10 , 1993 Barbara Kaiser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, CA 92648 Dear Ms Kaiser , We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establis a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer?Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 Tlic sign ill be constructea on the 405 Freeway and Beach Boulevard at a cost of $361 ,000 The city will provide payment of the sign, forgiving the first $100 ,000 The dealers are responsible for and increase in sales tax revenue to the City of $261 , 000 over a five year period My present estimated cost will be $363 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled , the guarantee period will be considered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest aar" caoaLs AUTHORIZED oQALIEN �W 1515� CORPORATION 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4, 000 00 per month including electricity My present estimated cost is $400 00 per month 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the Reader Sign Project as a portion of many joint programs to improve the City ' s economic base and a city to do business in Sincerely, Charles Barker President/Owner RESOLUTION NO 6485 A RESOLUTION OF THE CITY OF HUNTINGTON BEACH DECLARING ITS INTENTION TO LEVY AN ANNUAL ASSESSMENT FOR FISCAL YEAR 1993-94 TO FUND IMPROVEMENTS WITHIN THE HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT WHEREAS, the Parking and Business Improvement Area Law of 1989, codified at Streets and Highways Code S 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, Huntington Beach Auto Dealers 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 1993-94 by levying assessments on those businesses that benefit from the improvements constructed NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows SECTION 1 The City Council of the City of Huntington Beach hereby declares its intent to change the boundaries of the District by adding two additional new car dealers as recommended in the 1992-93 Annual Report and as reflected in Exhibit A-1 and A-2 SECTION 2 Further, it is the intention of the City Council to levy and collect assessments within the District for fiscal year 1993-94 The levy is to apply to small businesses SCL418 1 classified by the City of Huntington Beach License Code as Class A Retail Sales, (Al) Auto, New, Used, Parts, including new businesses of that classification located within the District as shown in Exhibits A-1 and A-2, in the amounts set forth on Exhibit B-1, which Exhibits are incorporated herein by reference SECTION 3 The assessments collected will be used to cover costs to operate and maintain an electronic reader board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue SECTION 4 Exhibits B-1 and B-2 provides the budget and items which describe the activities of the District and the amount to be assessed to those businesses within the District This information will be on file with the City Clerk SECTION 5 A public hearing shall be held before the City Council on July 6, 1993, at 7 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 continuation of the District, the extent of the District, 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 SCL418 2 6485 proceedings to establish the District 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 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) 536-5582, or from the Huntington Beach Auto Dealers Association, Inc , P O Box 2700, Huntington Beach, CA 92648, telephone (714) 831-8458 SECTION 7 The City Clerk will have this resolution of intention to be published once in a newspaper of general circulation in the city at least seven days before the public hearing SECTION 8 The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each i SCL418 3 i business owner in the area within seven days after the Council ' s adoption of this resolution SECTION 9 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 7th day of June , 1993 Mayor ATTE � I APPROVED AS TO FORM City Clerk City Attorney REVIEWED AND APPROVED INITIAQTED AND APPROVED Gam✓ -� w_ S12 7 �Ci�tyA�dmiWstra�tor Director of Economic Development SCL418 4 r-nor Exhibit A-1 Huntington Beach BLVD of CARS Reader Board Site ® s Huntington Center Edinger Dodgeu Heil Chrysler-Plymouth-Hyundai ®L Jeep Eagle incoln Mercury V1/arner Oldsmobile-Mazda Slater Talbert Chevrolet 13 Ford Ellis Volkswagen/Isuzu Nissan/Saturn LI Toyota o Garfield Acura W JE Honda/Mitsubishi CD rij s� C� May 1993 Exhibit A-2 HUNT/NGTON BEACH AUTOMOBILE DEALERS ASSOCIATION, INC 1 Clay James 6 Dave De Lillo/Bill Demarest Huntington Beach Dodge De Lillo Chevrolet 16555 Beach Boulevard 18211 Beach Boulevard Huntington Beach, CA 92647 Huntington Beach, CA 92647 (714) 847-5515 (714) 847-6087 FAX# 842-7408 FAX# 847-6721 2 Charles Barker 7 Ed Coscolluela Huntington Beach Chrysler- Terry York Ford Plymouth and Hyundai 18255 Beach Boulevard 16661 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842-6611 (714) 842-0631 FAX# 847-8788 FAX# 843-5857 8 Danny McKenna/Don Stephens 3 Rick Evans South County Volkswagen/Isuzu Huntington Jeep Eagle 18711 Beach Boulevard 16751 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842-2000 (714) 841-3999 FAX# 841-7819 FAX# 841-4848 9 Frank D'Agostino 4 Chet Clark Campbel Nissan/Saturn Beach Lincoln-Mercury 18835 Beach Boulevard 16800 Beach Boulevard Huntington Beach, CA 92648 Huntington Beach, CA 92647 (714) 842-7781 (714) 848-7739 FAX# 848-6569 FAX# 847-1265 10 Jack Caswell 5 Jarrett J Kuske Bill Maxey Toyota Beach Motors 18881 Beach Boulevard Oldsmobile-Mazda Huntington Beach, CA 92648 17331 Beach Boulevard (714) 847 8555 Huntington Beach, CA 92647 FAX# 841-9857 (714) 842-6666 FAX# 847-0759 FAQr, Exhibit A-2 11 Dan Powers Huntington Beach Acura 19131 Beach Boulevard Huntington Beach, CA 92648 (714) 842-009 5 FAX# 841-3524 12 Roger Miller - Roger Miller Honda/Mitsubishi 19232 Beach Boulevard Huntington Beach, CA 92646 (714) 963-1965 FAX# 964-7495 13 Reader Board Sign Site City of Huntington Beach 7991 Center Avenue Huntington Beach, CA 92647 Mail to Barbara A Kaiser, Director Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 TA sar a autodeal 05/13/93 r A 0 C Exhibit B-1 ASSESSMENT FORMULA AND BUDGET 1993-1994 HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT Director Sign Trust Account (for sixty months) $52200 Sign Maintenance (including electricity) 43800 Administrative Costs (dealers) 30000 Property Tax 3610 Insurance Costs 40W Collection/Disbursement Costs 40W (City/Bank) TOTAL EXPENSES $137610 COST PER MEMBER (12) Annual $11468 Per Month $956 After 60 months $593 * Business owners with multiple dealerships at the same location or adjacent locations having a common method of access and egress shall pay one benefit assessment fee * Business owners with multiple dealerships at multiple non-adjacent locations shall be assessed for each such location Exhibit B-2 EXPLANATION OF HBADA B I D BUDGET ACCOUNTS * SIGN TRUST--TRUST ACCOUNT IN LOCAL HUNTINGTON BEACH BANK ACCOUNT TO GUARANTEE CITY THE MONEY THAT DEALERS WILL PAY IF AS A GROUP THEY DO NOT INCREASE SALES TAX $261,000 OVER THE BASE YEAR OF 1991 IN A FIVE YEAR PERIOD STARTING WHEN THE SIGN BECOMES OPERATIONAL *MAINTENANCE--MONTHLY PAYMENT TO ELECTRA-MEDIA FOR MAINTAINING AND PROGRAMMING THE SIGN PLUS ELECTRIC BILL *ADMINISTRATIVE COSTS-EXPENSES (INCLUDING OFFICE RENT, AS REQUIRED BY CALTRANS) TO OPERATE THE ASSOCIATION **PROPERTY TAX--PAID TO THE COUNTY OF ORANGE **INSURANCE--PUBLIC LIABILITY, PROPERTY ETC AS REQUIRED BY THE CITY *COLLECTION/DISBURSEMENT COSTS--ADMINISTRATIVE FEE TO THE CITY, DISBURSEMENT COSTS TO TIEMPO ESCROW *MONTHLY DEDUCTED FROM ASSOCIATION CHECK OR PAID BY ESCROW COMPANY *ANNUAL PAYMENTS 6485 Res No 6485 STATE OF CALIFORNIA COUNTY OF ORANGE ss CITY OF HUNTINGTON BEACH ) I, CONNIE BROCKWAY, 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 the 7tr day of June 19_U _, by the following vote AYES Councilmembers Robitaille, Bauer, Moulton-Patterson, Winchell, Silva, Sullivan, Leipzig NOES Councilmembers None ABSENT Councilmembers None a City Clerk and ex-officioKlerk of the City Council of the City of Huntington Beach, California