HomeMy WebLinkAboutCity Council - 2020-26 RESOLUTION NO. 2020-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH
ESTABLISHING CITY POLICY REGARDING THE DEFERRAL OF HUNTINGTON
BEACH DOWNTOWN BUSINESS IMPROVEMENT DISTRICT ASSESSMENTS IN
RESPONSE TO COVID-19
WHEREAS, the Parking and Business Improvement Area Law of 1994, 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 formed a business improvement area, the Huntington Beach Downtown
Business Improvement District (the "District"), by the passage of Ordinance 3661 on September
7, 2004. The City is proposing to levy an assessment for fiscal year 2016-2017 pursuant to the
process detailed in Streets and Highways Code §36500, et seq.
Each year, the District's Advisory Board prepares and files with the City Clerk a report an
"Annual Report/Operating Budget 2017-2018 Fiscal Year to Date" and "Proposed Budget for
Fiscal Year 2018-2019" (collectively, "Annual Report"); and
Each year, the City Council adopts a resolution declaring its intention to levy an annual
assessment for Fiscal Year 2018-2019 as proposed by the District's Annual Report. This City
Council action authorizes the imposition of an assessment on businesses within the area to pay
for matters listed in the Annual Report/Operating Budget.
COVID-19 pandemic has cause tremendous negative impacts to the global and local
economies. Many of the Huntington Beach businesses experienced significant losses of income
as a result. The steep and sudden drop in revenues has made it extremely difficult for businesses
to keep up with ongoing costs. Many businesses have furloughed and/or laid off employees and
in some cases are at risk of going out of business.
This deferral of assessments will give temporary relief to our valued downtown
businesses during these difficult economic times. The deferral of the District assessments is
contingent upon written authorization and approval by the District. Businesses will still be
required to remit the assessments as required by Ordinance 3661 after July 31, 2020.
In response to COVID-19, the date upon which the assessments are due to the City will
be temporarily extended until July 31, 2020 for assessments charged and/or collected from
March 1 to June 30, 2020 period. This will protect the health, safety and welfare of the citizens
of Huntington Beach by allowing downtown Huntington Beach businesses some temporary
financial security.
NOW, THEREFORE, the City Council of the City of Huntington Beach does hereby
resolve as follows:
RESOLUTION NO. 2020-26
SECTION 1. The City Council of the City of Huntington Beach adopts the following
policy regarding the payment of assessment on businesses within the Huntington Beach
Downtown Business Improvement District area:
In the spirit of the Governor's Order N-28-20, the City will extend the time to pay
assessment on businesses within the Huntington Beach Downtown Business Improvement
District area until July 31, 2020, because of the hardships caused by the COVID-19 pandemic.
City Council delegates to the City Manager the authority to provide a program for the repayment
TOT during this time period. City Council also delegates to the City Manager the authority to
extend the deferral period past July 31, 2020. In no event will the deferral extend beyond
September 30, 2020. In any case, the City will provide a no-interest repayment arrangement
option for a period not to extend past June 30, 2021.
SECTION 2. If any action, subsection, sentence, clause or phrase of this Resolution shall
be held invalid or unconstitutional by a court of competent jurisdiction, such invalidity shall not
affect the validity of the remaining portions of this Resolution, the, or other attachments thereto
or fees levied by this Resolution.
SECTION 3. This Resolution shall take effect immediately and apply retroactively to
March 16, 2020.
PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a
regular meeting thereof held on the 20th day of April , 2020.
May r
VIEWE AND APPROVED: INITIATED AND APPROVED:
i y Manager r -C ief Financial Officer
APPROVED AS TO FORM:
4-�& tity Attorney
2
20-8606/228492
Res. No. 2020-26
STATE OF CALIFORNIA
COUNTY OF ORANGE ) ss:
CITY OF HUNTINGTON BEACH )
I, ROBIN ESTANISLAU, the duly elected, qualified City Clerk of the
City of Huntington Beach, and ex-officio Clerk of the City Council of said City, do
hereby certify that the whole number of members of the City Council of the City of
Huntington Beach is seven; that the foregoing resolution was passed and adopted
by the affirmative vote of at least a majority of all the members of said City Council
at a Regular meeting thereof held on April 20, 2020 by the following vote:
AYES: Posey, Delgleize, Hardy, Semeta, Peterson, Carr, Brenden
NOES: None
ABSENT: None
RECUSE: None
City Clerk and ex-officio Clerk of the
City Council of the City of
Huntington Beach, California