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Home My WebLink AboutAPPROVE THE HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEME 26- -7 . Council/Agency Meeting Held: Deferred/Continued to: 1 (Approved ❑ Conditionally Approved ❑ Denied Ci le s Sig re Council Meeting Date: 9/4/2007 Department ID Number: ED 07-30 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PENELOPE CULBRETH-GRAFT, DPA, CITY ADMINISTRATOF PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: Approve Huntington Beach Auto Dealers Business Improvement District Annual Report, Adopt Resolution of Intention to Levy an Annual Assessment for Fiscal Year 2007/08, and Schedule Public Hearing for October 1, 2007 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachments) Statement of Issue: On September 8, 1992 the City Council approved Ordinance No. 3175 to establish the Huntington Beach Auto Dealers Business Improvement District (BID) as a method for financing the construction costs, operation, and maintenance of the electronic reader board sign and other promotional programs allowed under the law. 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 are included in the 2007/08 Huntington Beach Auto Dealers Business Improvement District Budget (Fund 701) Recommended Action: Motion to: 1. Approve the Huntington Beach Auto Dealers Business Improvement District Annual Report for FY 2007/08. 2. Adopt City Council Resolution No. 2007-5 a Resolution of Intention of the City of Huntington Beach to levy an assessment for the Huntington Beach Auto Dealers Business Improvement District for fiscal year 2007/08. 3. Direct the City Clerk to schedule a public hearing to be held on October 1, 2007 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. Return the 2007/08 Annual Report of the Huntington Beach Auto Dealers Business Improvement District for additional information. 2. Deny the request to approve the Resolution of Intention. RESOLUTION NO. 2007-56 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 2007-2008 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 2007-2008 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 2006-2007, ("Annual Report") which sets forth the amount and basis of levying the assessment for Fiscal Year 2007-2008. 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 2007-2008 and a description of the improvements and activities to be provided for Fiscal Year 2007-2008. SECTION 2. The City Council hereby declares its intent to levy and collect assessments within the District for Fiscal Year 2007-2008. 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-1 and listed in Exhibit B-2, in the amounts set forth on Exhibit B-3, which exhibits are incorporated herein by 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 October 01, 2007 , 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 08-1159/13393 1 Resolution No. 2007-56 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 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 4th day of September , 200 7 M'y$r , REVIE,WED AND APPROVED: INITIATED AND APPROVED: City Administrator Director of Economic hevelopment APPROVED AS TO FORM: tClAttloijey Va �o 08-1159/13393 2 Resolution No. 2007-56 Exhibit A Huntington Beach Auto Dealers Business Improvement District Annual Report/Budget 2007/08 Business Improvement District Renewal This report contains the following: 1. 2007/08 Report/Budget including Assessment Formula Information 2. 2006/07 Report/Budget 3. Assessment Map Resolution No. 2007-56 Exhibit B-1 Huntington Beach Boulevard of Cars Readerboard Site p%, Bella Terra Edinger Heil Dodge 1 Chrysler-Jeep & Hummer 2 4 Mazda Mitsubishi 3 Warner Nissan 5 Slater Talbert Chevrolet 6 Ford 7 Ellis Volkswagen 8 Saturn 9 Toyota 10 Garfield Honda 11 rD W n ZT Q Not to scale Resolution No. 2007-56 Exhibit B-2 HUNTINGTON BEACH AUTO DEALER ASSOCIATION MEMBER LIST TO: GENERAL MANGERS AND OWNERS* REVISED 8-14-07(ANY CHANGES CALL PAM (714-847-6087) HB. A/DLRS ASSOC. 7755 CENTER #1100 HE, CA 92647 **714-372-7209 H.B. CHRYSLER-JEEP- SATURN OF HUNTINGTON BEACH RICK EVANS-ROSS HELMAN BUSA SNIDER/KIFAH KHODR 16701 BEACH BLVD. 92647 18801 BEACH BLVD. 92648 PHONE 841-3999 FAX 842-2903-841-9993 PHONE 841-9828 FAX 842-8499 H.B. -MAZDA H.B. FORD CHAD CUSTERMOHN PATTERSON OSCAR BAKHTIARI/OMAR 16800 BEACH BLVD. 92647 18255 BEACH BLVD. 92648 PHONE 848-7739 FAX 847-1265 PHONE 842-6611 FAX 847-8788 TOYOTA OF HB DOUGLAS NISSAN OF HE BOB MILLER/DENNIS PRADO **** PAT PEPPER/CHRIS KOURY 18881 BEACH BLVD. 17331 BEACH BLVD. 92647 PHONE 847-8555 FAX 847-1105 842-6666 F 375-0076/847-0759 DELILLO CHEVROLET HUNTINGTON BEACH DODGE DAVE DELILLO/BILL DEMAREST CLAY JAMES/LARRY SMITH 18211 BEACH BLVD. 92648 16555 BEACH BLVD. 92647 847-6087 F/ 847-6721 847-5515 F/596-0230 NORM REEVES HONDA HB MITSUBISHI DAN KLAWITTER/SHAWN KEEBAUGH ABBAS AHMADI/CHUCK BIEN 19131 BEACH BLVD. 16751 BEACH BLVD. PHONE 842-5431 FAX 375-9783 375-9493 F/842-1563(NOT MEMBER) MC KENNA VW ****' BILL NELSON A/DLR DIRECTOR 18711 BEACH BLVD 714-536-8614 MARIN DELGADO/DANNY MC KENNA surfhb@socal.rr.com 714-842-2000 FAX 714-843-8369 CRAIG FELTMAN 924-442-0500 NORWALK STORE X507 & SONY 949-442-9082 FAX 949-442-2886 Resolution No. 2007-56 HUNTINGTON BEACH AUTO DEALERS Exhibit B-3 BUSINESS IMPROVEMENT DISTRICT REPORT/BUDGET OCTOBER 1, 2007 TO SEPTEMBER 30, 2008 REVENUE'l" Previous Years Surplus Revenue $ 42,577 Business Improvement Assessment $ 177,903 Total Revenues: $ 220,480 EXPENSES Promotional Activities and events(2) $ 56,000 Management Services 26,000 Misc/Dues and Fees 1,000 Office rent/Maintenance 14,477 Office Supplies 600 Subtotal Promotional: 98,077 Reader Board Sign Maintenance Electricity 14,000 Insurance 7,300 Loan payment 83,093 Maintenance 11,400 Phone (data transmission) 850 Programing for sign 5,760 Subtotal Readerboard Sign: 122,403 Total Expenses: 220,480 Surplus Revenue 0 NOTES: (1) Dealer loan assessments are based on $630 per month for each of the eleven dealer members. The operating assessment income is $725 per month per dealer. Net is $725 less 1% administrative charge for a total of $1,355 per dealer. Surplus Revenue represents excess aggregate loan assessment maintained by city finance dept. (2) Automobile Raffle for major HB charities ($25,000);HB Athletic Programs ($3,500);4TH of July Parade ($5,000); School Scholastic Programs($4,000);School Grad Nights($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events($4,000). REQUEST FOR CITY COUNCIL ACTION MEETING DATE: 9/4/2007 DEPARTMENT ID NUMBER: ED 07-30 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 2007/08. As approved by the Auto Dealers Board at their July 17, 2007 meeting, the monthly assessments will include $725 for promotional activities, including the reader board sign maintenance and operating costs and a $630 loan payment, for a total monthly assessment of $1,355 per dealer. The loan is amortized over a seven year period at 6% per year. The last payment will be due in April 2010. 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 October 1, 2007. 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. Beginning in the 2007/08 fiscal year, the City must exercise greater fiduciary responsibility over all Business Improvement Districts based on recent case law. Working with the Business Improvement Districts, staff will ensure that the expenditures will not exceed the approved budgets as proposed in the respective annual reports without prior approval by City Council in a public hearing. Strategic Plan Goal: "Create an environment that promotes tourism to increase revenues to support community services and transform the city's economy into a destination economy." Environmental Status: Not applicable. Attachment(s): NumberCity Clerk's Page • Description 1. Annual Report for Fiscal Year 2007/2008 2. Resolution of Intention to Levy Assessment for FY 2007-2008 -2- 8/20/2007 3:58 PM g �. Huntington Beach Auto Dealers Business Improvement District Annual Report/Budget 2007/08 Business Improvement District Renewal This report contains the following: 1. 2007/08 Report/Budget including Assessment Formula Information 2. 2006/07 Report/Budget 3. Assessment Map HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT REPORT/BUDGET OCTOBER 1, 2007 TO SEPTEMBER 30, 2008 REVENUE"' Previous Years Surplus Revenue $ 42,577 Business Improvement Assessment $ 177,903 Total Revenues: $ 220,480 EXPENSES Promotional Activities and events(2) $ 56,000 Management Services 26,000 Misc/Dues and Fees 1,000 Office rent/Maintenance 14,477 Office Supplies 600 Subtotal Promotional: 98,077 Reader Board Sign Maintenance Electricity 14,000 Insurance 7,300 Loan payment 83,093 Maintenance 11,400 Phone (data transmission) 850 Programing for sign 5,760 Subtotal Readerboard Sign: 122,403 Total Expenses: 220,480 Surplus Revenue 0 NOTES: (1) Dealer loan assessments are based on $630 per month for each of the eleven dealer members. The operating assessment income is $725 per month per dealer. Net is $725 less 1% administrative charge for a total of $1,355 per dealer. Surplus Revenue represents excess aggregate loan assessment maintained by city finance dept. (2) Automobile Raffle for major HB charities ($25,000);HB Athletic Programs ($3,500);4TH of July Parade ($5,000); School Scholastic Programs($4,000);School Grad Nights($2,500);Image advertising to buy at home ($12,000); Plus Misc. promotional activities and events($4,000). HUNTINGTON BEACH AUTO DEALERS ASSOCIATION Business Improvement District OPERATING STATEMENT FOR: June-2007 Balance forward From 2006-2007 43,710.94 Fiscal Year is: October 1 -September 30 INCOME June-07 Fiscal 2006-2007 YTD Dealer Assessments .7,177.50 60,563.25 BID Interest - BID Misc Income 200.00 900.00 TOTAL INCOME 7,377.60 61,463.25 EXPENSES Advertising - Community Relations Projects 3,400.00 15,975.00 Dues and Fees 341.86 Electricity 999.83 8,574.75 EMI Maintenance 950.00 8,550.00 EMI Program 480.00 ;4,320.00 Insurance/Taxes 4,575.90 Legal 2,805.00 2,805.00 Miscellaneous 300.00 300.00 Office Furniture -4,082.99 Office Rent 1,085.17 5,655.17 Office Supplies/Printing 278.61 817.99 Outside Services 2,062.86 16,556.65 Phone 38.35 316.24 Signs and Banners 181.44 181.44 TOTAL EXPENSES 120581.26 73,052.99 Income Less Expenses (5,203.76) (11,689.74) . Cash in Bank as of: June 2007 32,121.20 Huntington Beach Boulevard of Cars Readerboard Site �S Bella Terra Edinger Heil Dodge 1 Chrysler-Jeep & Hummer 2 4 Mazda Mitsubishi 3 Warner Nissan 5 Slater Talbert Chevrolet 6 Ford 7 Ellis Volkswagen 8 Saturn 9 Toyota 10 Garfield Honda 11 rm n Not to scale HUNTINGTON BEACH AUTO DEALER ASSOCIATION MEMBER LIST TO: GENERAL MANGERS AND OWNERS* REVISED 8-14-07(ANY CHANGES CALL PAM (714-847-6087) HB. A/DLRS ASSOC. 7755 CENTER #1100 HB, CA 92647 **714-372-7209 H.B. CHRYSLER-JEEP- SATURN OF HUNTINGTON BEACH RICK EVANS-ROSS HELMAN BUBA SNIDER/KIFAH KHODR 16701 BEACH BLVD. 92647 18801 BEACH BLVD. 92648 PHONE 841-3999 FAX 842-2903-841-9993 PHONE 841-9828 FAX 842-8499 H.B. -MAZDA H.B. FORD CHAD CUSTER/JOHN PATTERSON OSCAR BAKHTIARI/OMAR 16800 BEACH BLVD. 92647 18255 BEACH BLVD. 92648 PHONE 848-7739 FAX 847-1265 PHONE 842-6611 FAX 847-8788 TOYOTA OF HB DOU LAS NI SAN OF HS BOB MILLER/DENNIS PRADO **** PAT PEPPER/CHRIS KOURY 18881 BEACH BLVD. 17331 BEACH BLVD. 92647 PHONE 847-8555 FAX 847-1105 842-6666 F 375-0076/847-0759 DELILLO CHEVROLET HUNTINGTON BEACH DODGE DAVE DELILLO/BILL DEMAREST CLAY JAMES/LARRY SMITH 18211 BEACH BLVD. 92648 16555 BEACH BLVD. 92647 847-6087 F/ 847-6721 847-5515 F/596-0230 NORM REEVES HONDA HB MITSUBISHI DAN KLAWITTER/SHAWN KEEBAUGH ABBAS AHMADI/CHUCK BIEN 19131 BEACH BLVD. 16751 BEACH BLVD. PHONE 842-5431 FAX 375-9783 375-9493 F/842-1563(NOT MEMBER) MC KENNA VW ***** BILL NELSON A/DLR DIRECTOR 18711 BEACH BLVD 714-536-8614 MARIN DELGADO/DANNY MC KENNA surffhb@socal.rr.com 714-842-2000 FAX 714-843-8369 CRAIG FELTMAN 924-442-0500 NORWALK STORE X507 A SONY 949-442-9082 FAX 949-442-2886 ATTAC H M E N T #2 Res. No. 2007-56 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 the 4th day of September, 2007 by the following vote: AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None Ci Clerk and ex-officio Jerk 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 2007/08 COUNCIL MEETING DATE: September 4, 2007 RCA ATTACHMENTS STATUS Ordinance (w/exhibits & legislative draft if applicable) Attached ❑ Not Ap licable 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 Attorne ) 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 A e No licable Staff Report (If applicable) Attached Applicable No Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Ap licable EXPLANATION FOR MISSING ATTACHMENTS; -REVIEWED RETURNED FORWARDED Administrative Staff ( ) ( ) Deputy City Administrator Initial City Administrator Initial ) City Clerk ( ) EXP,LANATION`FOR RETURN OF ITEM s Only)(Below Space For City Clerk's Use RCA Author: lamb/runzel Jam and Smudge Free Printing www.avery.com ® TM Use AveryO TEMPLATE 5960TM _'� 1-800-GO-AVERY ® AVERY 5960 Auto Dealers Assn. of HB Huntington Beach Chrysler-Jeep Huntington Beach Mazda Bill Nelson,Director Rick Evans/ Ross Helman Chad Custer/John Patterson 7755 Center Ave., Ste. 1100 16701 Beach Blvd. 16800 Beach Blvd. Huntington Beach, CA 92647 Huntington Beach CA 92647 Huntington Beach CA 92647 Toyota of Huntington Beach DeLillo Chevrolet Norm Reeves Honda Bob Miller/Dennis Prado Dave Delillo /Bill Demarest Dan Klawitter/ Shawn Keebaugh 18881 Beach Blvd. 18211 Beach Blvd. 1913I Beach Blvd. Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 McKenna Volkswagen Saturn of Huntington Beach Huntington Beach Ford Danny McKenna/Marin Delgado Buba Snider/Kifah Khodr Oscar Bakhtiari /Omar 18711 Beach Blvd. 18801 Beach Blvd. 18255 Beach Blvd. Huntington Beach CA 92648 Huntington Beach CA 92648 Huntington Beach CA 92648 Douglas Nissan of HB Pat Pepper/Chris Koury Huntington Beach Dodge Huntington Beach Mitsubishi 1733I Beach Blvd. Clay James/ Larry Smith Abbas Ahmadi / Chuck Bien Huntington Beach CA 92647 16555 Beach Blvd. 16751 Beach Blvd. Huntington Beach CA 92647 Huntington Beach CA 92647