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Home My WebLink AboutPublic Hearing – Adopt Resolution No. 2007-64 Approving an /Oyo 7- Council/Agency Meeting Held: ® / Deferred/Continued to: *pproved ❑ Conditionally Approved ❑ Denied "qCit lerk' Sign u Council Meeting Date: 10/1/2007 Department ID Number: ED 07-31 CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: PE LOPE LBR�RA�PA, CITY ADMINISTRATOR PREPARED BY: STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT SUBJECT: Conduct Public Hearing and Adopt Resolution for the Huntington Beach Auto Dealers Business Improvement District Annual Assessment for Fiscal Year 2007/08 Statement of Issue,Funding Source,Recommended Action,Alternative Action(s),Analysis,Environmental Status,Attachment(s) Statement of Issue: On September 4, 2007, City Council approved the Resolution of Intent to No. 2007-56 to levy an assessment for the Huntington Beach Auto Dealers Business Improvement District for fiscal year 2007/08 and authorized the City Clerk to schedule a public hearing. City Council will conduct a public hearing to consider a resolution to approve the annual assessment for the 2007/08 fiscal year. Funding Source: Fund 701, Huntington Beach Auto Dealers Business Improvement District, current revenue estimates provided in the original budget will fund additional expenditures in account 70180101. Recommended Action: Motion to: 1. Conduct the Public Hearing. 2. Adopt City Council Resolution No. 2007- 64 , a Resolution of the City Council of the City of Huntington Beach approving an Annual Assessment for fiscal year 2007/08 for the Huntington Beach Auto Dealers Business Improvement District. 3. Appropriate an additional $28,080 in the Auto Dealers BID account 70180101 to match the BID proposed budget. Alternative Action(s): 1. Deny the request to approve the Resolution; or 2. Modify elements of the proposed Resolution, such as: the proposed assessments, activities or improvements to be funded. f Res. No. 2007-64 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 1st day of October, 2007 by the following vote: AYES: Bohr, Carchio, Cook, Coerper, Green, Hansen, Hardy NOES: None ABSENT: None ABSTAIN: None CitM,lerk and ex-officio Merk of the City Council of the City of Huntington Beach, California ATTACHMENT #2 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 betaken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only 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 4 t h day of September ;200 7 y$r REVI,,WED AND APPROVED: INITIATED AND APPROVED: J7- City Administrator Director of Economic Nevelopment APPROVED AS TO FORM: Ci Atto ey 08-1159/13393 2 HUNTINGTON BEACH AUTO DEALERS Exhibit A 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 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: 10/1/2007 DEPARTMENT ID NUMBER: ED 07-31 Analysis: At the request of the Huntington Beach Auto Dealers Association, the City Council formed the Auto Dealers Business Improvement District (BID) in 1992 to fund the Dealers' obligation to operate and maintain the electronic reader board sign located just off the 405-freeway that was first constructed in 1992 and to fund other promotional activities that benefit the BID. The Auto Dealer BID Board of Directors approved the assessment formula at their July 10, 2007 meeting. For each auto dealer the assessment will include a $630 loan payment and a $725 assessment for promotional activities, for a total monthly cost of $1,355 per member, less than the 2006 assessment of$1,425. In order for the City to levy the BID assessment each fiscal year, City Council must conduct a public hearing before approving a Resolution confirming the Annual Report that was filed with the City Council Resolution 2007-56, approved on September 4, 2007. As required by the Streets and Highway Code §36500, et seq, copies of the Resolution of Intention that included the Annual Report and assessment formula was mailed to each business to be assessed and were also published in the Huntington Beach Independent. After the public hearing, City Council will consider adopting the Resolution. Upon approval of the Resolution, the 2007/08 assessment will become effective as of October 1, 2007. As the BID appropriation is currently $192,400, City Council is requested to add an additional appropriation of $28,080 in account 70180101 to increase the BID budget to $220,480 as proposed in the BID's 2007/08 report. 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. Resolution No. 2007- 64 approving an annual assessment for Fiscal Year 2007/08 to Fund Improvements within the Huntington Beach Auto Dealers Business Improvement District. 2. Resolution No. 2007-56, approved on September 4, 2007, declaring the City's Intention to Levy an annual Assessment for Fiscal Year 2007/08 for the Huntington Beach Auto Dealers Business Improvement District 3. Fiscal Impact Statement 4. Power Point Presentation. -2- 9/14/2007 2:08 PM ATTACHMENT # 1 RESOLUTION NO. 2007-64 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH APPROVING AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR FISCAL YEAR 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, the Huntington Beach Auto Dealers Association Improvement District (the "District"), by the passage of Ordinance 3175 on September 8, 1992. The time has come to continue the existence of the District for fiscal year 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. On September 4, 2007 ,the City Council adopted a resolution declaring its intention to levy an annual assessment for Fiscal Year 2007-2008 as proposed in the District's Annual Report. NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby resolve, determine and find as follows: SECTION 1. The City Council hereby approves and adopts 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 report 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 of the City of Huntington Beach hereby authorizes a levy and collection of assessments within the District for fiscal year 2007-2008 as proposed in the Annual Report. The levy is to apply to small businesses classified by the City of Huntington Beach License Code as Class A Retail Sales, (A1) Auto, New, Used, Parts, including new business of that classification located within the District as shown in Exhibits B-1 and B-2, in the amount of seven hundred twenty-five Dollars ($ 725 )per month for fiscal year 2007-2008 plus an additional $ 630 for repayment of electronic reader board sign, for a total of $ 1,355 per month, as set forth on Exhibit B-3, which Exhibits are incorporated herein by reference. 08-1159/13394 1 Resolution No. 2007-64 SECTION 3. The assessments collected shall be used to cover costs to operate, upgrade and maintain an electronic reader board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue and other promotional and advertising activities. SECTION 4. This resolution shall take effect on October 1, 2007 PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 1st day of October , 200Z. 0 1v1 REVIEWED AND APPROVED: INITIATED AND APPROVED: CiVy Administrator Di ector of Ecoodnic De elopment APPROVED AS TO FORM: (J- ' City Attorne d 08-1159/13394 2 Resolution No.2007-64 HUNTINGTON BEACH AUTO DEALERS Exhibit A 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 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). Resolution No.2007-64 Exhibit B-1 Huntington Beach Boulevard of Cars Readerboard 141 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 rD W n CO Not to scale Resolution No.2007-64 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 HB, 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 HB 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 DAMES/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.2007-64 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 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). Resolution No. 2007-56 Exhibit B-1 Huntington Beach Boulevard of Cars Readerboard Site OS 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 sv n CL 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 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 CUSTERIJOHN PATTERSON OSCAR BAKHTIARFOMAR 16800 BEACH BLVD. 92647 18255 BEACH BLVD.92648 PHONE 848-7739 FAX 847-1265 PHONE 842-6611 FAX 847-8788 TOYOTA OF HS DOUGLAS NISSAN OF HB 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 DAMES/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 surfhbCsocal.rr.com 714-842-2000 FAX 714-843-8369 CRAIG FELTMAN 924-442-0500 NORWALK STORE X507 8. 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"' Previous Years Surplus Revenue $ 42,577 Business Improvement Assessment $ 17.7,903 'total Revenues: $ 220,480 EXPENSES Promotional Activities and events(z) $ 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). 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 MN Ci Clerk and ex-officio lerk of the City Council of the City of Huntington Beach, California ATTACHMENT #3 CITY OF HUNTINGTON BEACH INTERDEPARTMENTAL COMMUNICATION FINANCE DEPARTMENT TO: PENELOPE CULBRETH-GRAFT, DPA, CITY ADMINISTRATOR FROM: DAN T. VILLELLA, CPA, FINANCE DIRECTOR SUBJECT: FIS 2007-08-3 Conduct Public Hearing and Adopt Resolution for the Huntington Beach Auto Dealers Business Improvement District Annual Assessment for Fiscal Year 2007/08 DATE: SEPTEMBER 14, 2007 As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Conduct Public Hearing and Adopt Resolution for the Huntington Beach Auto Dealers Business Improvement District Annual Assessment for Fiscal Year 2007/08" If the City Council approves this action, there will be no effect on any fund balance since the new appropriations are funded by revenues not anticipated in the original budget. Dan T. Villella Finance Director ATTACHMENT #4 Huntington Beach Auto Dealers Business Improvement District (BID) Annual Renewal for FY 2007-2008 October 1, 2007 Background • 1992 - HB Auto Dealers Requested BID be Formed to Operate and Maintain Electronic Reader Board Sign • Redevelopment Agency Loaned $474,000 to Auto Dealers for Electronic Reader Board Sign • Sept. 4, 2007 - Intention to Levy Assessment for Huntington Beach Auto Dealers BID for 2007- 2008 and Scheduled Public Hearing (Resolution No. 2007-56) 1 Participating Dealers • H.B. Chrysler Jeep • HB Mazda • Toyota of Huntington Beach • DeLillo Chevrolet • Norm Reeves Honda • McKenna VW • Saturn of Huntington Beach • HB Ford • Douglas Nissan of HB • Huntington Beach Dodge • HB Mitsubishi .Current Status • Copies of Resolution and assessment formula were sent to each affected business. • FY 2007-2008 Budget of$220,480. • Proposed FY 2007-2008 Assessment includes $725 for promotional activities and $630 for the loan payment, totaling $1,355/dealer/month. • Proposed Budget and Assessment Approved by BID Board of Directors July 10, 2007. 2 Process • State BID law requires City Council to conduct a protest hearing to consider all protests against the establishment of the BID. • If written protests are received from affected business owners of 50 percent or more of assessments,no further proceedings to consider the Business Improvement District can be considered for one year. • At the conclusion of the protest/public hearing,the City Council may reduce or modify the proposed assessment or types of activities to b funded with assessment revenues. • The City Council has the option of not renewing the Business Improvement District. s Recommended Action City Council Actions • Conduct Public Hearing • Consider Resolution Approving Annual Assessment for FY 2007-2008 3 RCA ROUTING SHEET INITIATING DEPARTMENT: Economic Development SUBJECT: Conduct Public Hearing and Adopt Resoluton for HB Auto Dealers Business Improvement District 2007/08 COUNCIL MEETING DATE: October 1, 2007 RCA ATTACHMENTS STATUS Ordinance (w/exhibits &legislative draft if applicable) w Attached ❑ Not Applicable Resolution (w/exhibits & legislative draft if applicable) Attached Not Applicable ❑ Tract Map, Location Map and/or other Exhibits Attached ❑ Not Applicable Contract/Agreement (w/exhibits if applicable) Attached ❑ (Signed in full by the City Attorney) Not Applicable Subleases, Third Party Agreements, etc. Attached ❑, .. (Approved as to form by City Attorne ) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached ❑ Not A licable Fiscal Impact Statement (Unbudgeted, over $5,000) Attached ❑ Not Applicable Bonds (If applicable) Attached ❑ Not Appl!cable Staff Report (If applicable) Attached ❑ Not Appl!cable Commission, Board or Committee Report (If applicable) Attached ❑ Not Applicable Findings/Conditions for Approval and/or Denial Attached ❑ Not Appiicable EXPLANATION"FOR MISSING ATTACHMENTS I REVIEWED" RETURNED FORWARDED Administrative Staff ( ) Deputy City Administrator Initial ' City Administrator Initial City Clerk EXPLANATION FOR RETURN:OF ITEM: Only)(Below Space For City'Clerk's Use AA RCA Author: Iamb/runzel CITY OF HUNTINGTON BEACH PUBLIC NOTICE PUBLIC HEARING FOR THE AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT RENEWAL NOTICE IS HEREBY GIVEN THAT the City Council will hold its Public Hearing on the 2007-08 renewal of the Auto Dealers Business Improvement District at its meeting scheduled on October 1,2007 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center,2000 Main Street,Council Chambers as required by the Parking and Business Improvement Area Law of 1989 as approved by City Council in Resolution No 2007-56 as re-printed below: 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, (A1)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 1,2007,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 furnishing of specified types of improvements or activities. Protests may be made orally or in writing; but, if written, shall be filed with the City Clerk at or before the time fixed for the hearing and contain sufficient documentation to verify business ownership and validate the particular protest. If written protests are received by the owners of businesses within the District, which will pay 50% or more of the total assessments to be levied, no further proceedings to levy the proposed assessment shall be taken for a period of one year from the date of the finding of a majority protest by the City Council. If the majority protest is only against the furnishing of a specified type or types of improvements or activity within the District,those types of improvements or activities shall be eliminated. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of intention to be published once in a newspaper of general circulation at least seven days before the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be obtained at the Huntington Beach City Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5542; 08-1159/13393 1 or from the Huntington Beach Auto Dealers Association, Inc., P.O. Box 2700, Huntington Beach,CA 92648;telephone (949)831-3443. SECTION 7. The City Clerk shall mail a complete copy of this resolution of intention by first-class mail to each business owner in this area within seven days after the Council's adoption of this resolution. SECTION 8. This resolution shall take effect immediately upon adoption. PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the fourth day of September 2007. Copies of the exhibits referenced above may be made available upon request by calling Carol Runzel, Senior Administrative Analyst at(714)536-5224 or through the City's website at: http://www.surfcity- hb.org/Govemment/Agendas/sep04O7.cfin. 08-1159/13393 2 Huntington Beach Independent has been adjudged a newspaper of general circulation in Huntington Beach and Orange County by Decree of the Superior Court of Orange County,State of California,under date of Aug. 24, 1994,case A50479. CITY OF HUNTINGTON BEACH PUBUC PROOF OF PUBUCHEARING H OR TEAUTODEALERS PUBLICATIONBUSINESS IMPROVEMENT DISTRICT RENEWAL FNOTICE, BY GIVEN THAT the'.City Council will hold its Public 2007-08 renewal of the Auto Dealers Business Improvement District at its meeting scheduled on October 1, 2007 at 6:00 PM or soon thereafter at the Huntington Beach Civic Center, 2000 T Main Street, Council Chambers as required by the Parking and Business STATE OF CALIFORNIA ) Improvement Area anted low:as approved by City Council in Resolution No 2007-56 as re-printed below:. ' RESOLUTION NO.2007-56 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SS. HUNTINGTON BEACH DECLARING THE CITY'S INTENTION TO LEVY AN ANNUAL ASSESSMENT WITHIN THE HUNTINGTON BEACH COUNTY OF ORANGE ) AUTO DEALERS ASSOCIATION BUSINESS IMPROVEMENT DISTRICT FOR- FISCALYEAR 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 am the Citizen of the United States and a for,the purpose of imposing benefit assessments on businesses'for certain purposes;and resident of the County aforesaid; I am over The City Council has formed a business improvement area, known'as e of eighteen ears, an the Huntington Beach Auto Dealers Association Business Improvement the ag e g y d not a party District(the"District"), by the passage of Ordinance 3175 on September 8, 1992. The time has come to continue the existence of the District to or interested in the below entitled matter. for fiscal year 2007-2008 by levying assessments on those businesses that benefit from the improvements constructed;and am a principal clerk of the HUNTINGTON 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 BEACH INDEPENDENT, a newspaper of the amount and basis of levying the assessment for Fiscal Year 2007-2008. general circulation, printed and published in NOW, THEREFORE, the City Council of the City of_ Huntington Beach does hereby resolve;determine and find as follows: the City of Huntington Beach, County of SECTION 1.The City Council hereby approves the Annual Report filed the Advisor Board in the CityClerk's b' ' y, p y office attached hereto. as Orange State of California and the Exhibit hibitA and incor orated herein b this reference, which includes a proposed budget for Fiscal Year 2007.2008 and a description of the attached Notice is a true and complete copy improvements and activities to be provided for Fiscal Year 2007-2008. SECTION 2. The City Council hereby declares its intent to levy and as was printed and published on the collect assessments within the District for Fiscal Year 2007-2008. The levy is to apply to small businesses classified by the City of,Huntington, following date(s): 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-i 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 electronicreader'board located within the City of Huntington Beach west of the intersection of Beach Boulevard and Center Avenue and other promotional and advertising activities. SECTION 4: A public hearing.shall be held before the City.Council on SEPTEMBER 2 0, 2 0 0 7 October 1, 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 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 501/w or more of the total assessments to be,levied; no.further proceedings Ao levy the'proposed assessment shall be taken fora period of one year from the-date of the fihding,of a majority-protest by the City-Councils-If.the-majority protest.is only against the'furnishing of a.specified type,or types of improvements or declare, under penalty of perjury, that the activity within the District, those types of improvements or.activities shall be eliminated. foregoing is true and correct. SECTION 5. The City Clerk is hereby directed to provide notice of the public hearing by causing this resolution of intention to'be published once in a newspaper of general circulation.at least seven.days before - the public hearing. SECTION 6. Further information regarding the proposed business improvement district may be :obtained at the'Huntington Beach City Executed on SEPTEMBER 20 r 2007 Hall, 2000 Main Street, Huntington Beach, California 92648; telephone (714) 536-5542; or from the Huntington Beach.Auto Dealers Association, at Huntington Beach California Inc., P.O. Box 2700, Huntington Beach,, CA 92648; telephone (949) g ' 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 fourth day of September 2007. Signature Copies of the exhibits referenced above may,be made available upon reqquest by,calling Carol Runzel, Senior Administrative Analyst at (714) 536.5224 or through the City's webslte at: http://wWw.surfclty-hb.org/ G over n me nt/Agendas/sep04O7,cfm. Published Huntington Beach Independent Se temlier,2b 2007 093.852