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City council Meeting 10-23-90
Santa Monica, California
OCT J 0 1990
STAFF REPORT
FROM:
Mayor and City Council
city Attorney
TO:
SUBJECT:
Recommendation to Introduce for First Reading an
Ordinance Amending Ordinance Number 960 (CCS)
Pertaining to the Additional Business License Tax
Levied in the Montana Avenue Business Improvement
Assessment District
INTRODUCTION AND BACKGROUND
On July 9, 1974, the city Council of the city of Santa
Monica adopted Ordinance Number 960 (CCS) (the "Ordinance")
pertaining to the establishment of a business improvement area to
provide for the levy of an additional business license tax (the
"Fee") for the general promotion of business and professional
activities in the Montana Avenue Business Improvement Assessment
District (the "District").
The Fee is payable by all business license holders
occupying business premises in the District.
Under the Ordinance, the Fee was based upon a percentage of
the general business license tax established pursuant to Article
VI of the Santa Monica Municipal Code, with minimum and maximum
dollar caps.
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Following the recent increase in general business license
tax rates, the city Council adopted Ordinance Number 1531 (CCS)
which adjusted the calculation of the additional business license
tax levied in the District to a reduced percentage of the general
business license tax.
Subsequently, after further review and analysis by city and
the District, the District requested that the Fee (currently
based on a percentage of the general business license tax) be
modified to a flat fee of One Hundred Dollars ($100.00) for each
business in the District. The District believes this change will
spread the burden more equitably, and also make the Fee easier to
administer. All proceeds of the Fee shall be utilized for
general business and area improvement and promotion of all
business in the District area. As set forth in Ordinance No. 960
(CCS), the proceeds of the Fee may be used for the following
purposes:
(1) Decoration of any public place in the area;
(2) Promotion of public events which are to take place on
or in public places in the area;
(3) Furnishing of music in any public place in the area;
(4) The general promotion of retail trade activities in the
area.
Although State law (streets & Highways Code Section 36000
eta seg.) authorizes a city to utilize proceeds of a tax such as
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the Fee described herein for the acquisition, construction or
maintenance of parking facilities for the benefit of the area,
Ordinance Number 960 (CCS) currently expressly excludes the use
of such proceeds for parking needs.
Revisions to the calculation and amount of the tax levy for
the District must comply with the provisions of Streets and
Highways Code section 36000 eta seq. ("The Law").
On September 25, 1990, the City Council adopted Resolution
Number 8091 (CCS), declaring its intention to change the
addi tional business tax levied in the District, and setting a
pUblic hearing on such change for october 23, 1990. Adoption of
such Resolution of Intention was the required first step in the
procedure to change the tax rate levy under the Law.
BUDGET/FINANCIAL IMPACT
Total business District revenues budgeted for FY 1990/91
are $12,700.00. Upon adoption of the amendment to the Ordinance,
revenues will increase by $13,500.00 to a total of $26,200.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
Prepared by:
Mike Dennis, Director of Finance
Linda A. Moxon, Deputy city Attorney
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CA:RMM:mox111/hpw
city council Meeting 10-23-90
Santa Monica, Californla
ORDINANCE NUMBER
(C~ty Councll Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING ORDINANCE NUMBER 960 (CCS)
TO CHANGE THE ADDITIONAL BUSINESS LICENSE TAX LEVIED
IN THE MONTANA AVENUE BUSINESS IMPROVEMENT DISTRICT
WHEREAS, on July 9, 1974, the city Council of the city of
Santa Monica adopted Ordinance Number 960 (CCS) , establishing a
business improvement area along a portion of Montana Avenue and
approving the levy of an additional business l~cense tax for the
general promotion of business and professional activities within
the area (hereinafter "the District"); and
WHEREAS, on July 10, 1990, the city council of the City of
santa Monica adopted Ordinance Number 1531 (CCS), amending
Ordinance Number 960 (CCS) to change the additional business
license tax levied in the District to a reduced percentage of the
general business license tax; and
WHEREAS, the City Council of the City of Santa Monica
des~res to again amend Ordinance Number 960 (CCS) in order to
change the additional business license tax levied in the District
from a percentage of the general business license tax amount to a
flat rate amount; and
WHEREAS, under and pursuant to the provisions of Part 5 of
Division 18, commencing with section 36000 of the Streets &
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Highways Code (hereinafter sometimes referred to as "said law"),
on September 25, 1990, the City Counc1l adopted Resolution Number
8091 (CCS) declaring its intention to change the additional
business license tax levied 1n the District and setting a public
hearing on such matter as required by said law; and
WHEREAS, said Resolut1on Number 8091 (CCS) was duly
publ1shed, cop1es thereof were duly mailed to each business
l1cense holder in the District and posted in public places in the
D1strict, as prov1ded by said law; and
WHEREAS, as specified in sa1d Resolution Number 8091 (CCS),
a hearing concerning the proposed change in the addltional tax
lev1ed in the District was held before the City Council on
October 23, 1990 I in the City Council Chambers located at 1685
Main Street, in the City of Santa Monica; and
WHEREAS, at said hearing all written and oral protests made
or filed were duly heard, evidence for and agalnst the proposed
action was rece1ved, and a full, fair, and complete hearing was
granted and held before the City Council: and
WHEREAS, at said hearing all protests, both written and
oral, made or filed, were duly overruled and denied and the City
Council determined that there is no majority protest within the
meaning of Section 36023 of the streets & Highways Code,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES ORDAIN AS FOLLOWS:
SECTION L Section 2 of Ordinance Number 960 (CCS) is
amended to change the additional business license tax levied in
the District and shall read as follows:
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SECTION 2. That in add~tion to the
general business l1cense tax (hereinafter
sometimes referred to as "bUSlness
license feell), an additional bUSlness
license tax is hereby imposed upon
business license holders occupying
business premises in the area in the
following amounts: One Hundred Dollars
($100.00) at a flat rate for each reta~l
and recreation and entertalnment business
ln the area; Forty Dollars (~40.00) at a
flat rate for each agent/broker, auto
dealer, contractor, subcontractor, or
spec1alty contractor, corporate or
administrative headquarters, manufactur-
ers, professions, services, wholesalers
and utilities business ln the area. Said
additional business license tax shall be
payable as follows: During Fiscal Year
1990-91, said additional business tax
shall be due on or before February 15,
1991. Thereafter, said additional
business license tax shall be payable
concurrently and at the same time as the
general business license tax. For
failure to pay said additional license
tax on the due date thereof, penal ties
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shall be exacted as set forth in Section
6015 of the Santa Monica Municipal Code.
SECTION 2. ordinance Number 1531 (CCS) is hereby repealed
1n ~ts ent1rety. The repeal of said Ord1nance Number 1531 (CCS)
shall not prevent or otherwise affect any prosecutions, whether
corn.l11enced or not yet inltiated, that are brought to enforce
compliance with Ordinance Number 1531 (CCS), which violations
occurred prior to the effective date of the repeal.
SECTION 3. All protests, both written and oral, are
overruled and denied, and the Clty Cauncll finds that there is no
ma)Orlty protest w1th1.n the mean1.ng of section 36023 of the
Streets and Hlghways Code.
SECTION 4. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this Ordlnance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to affect the provisions of this Ordinance.
SECTION 5. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
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any portion of the Ordinance would be subsequently declared
invalid or unconstltutional.
SECTION 6. The Mayor shall slgn and the City Clerk shall
attest to the passage of this Ordinance.
The City Clerk shall
cause the same to be publ ~shed once in the off icial newspaper
within 15 days after its adoption. This Ordinance shall become
effective after 30 days from ltS adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS
city Attorney
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CA:RMH:moxl11/hpw
City Council X..tinq 10-23-90
Santa Monica, Califcrni~
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ORDINANCZ NUMBER
(City Council Serie.)
AN ORDINANCE or '!'HE CITY COUNCIL OF DE
CITY or SANTA KONICA AMENDING ORDINANCI NOKaER 960 (CeS)
~o CHANGE THE ADDITIONAL BUSINESS LIClNSK TAX ~ED
IN THE MONTANA AVElfuli BUSlNES' IHPROVZMBNT DISTRIC'l'
WHEREAS, on July 9, 1974, the City council ot the City of
Santa Monica adopted Ordinance NUmber 960 (ees) , ..t&blishing a
business improv.mGnt area alcnq a portion of Montana Avenue and
approvinq the l.vy~ of an additional ~u.in... license tax f=r the
general promotion of huslneaa and prcf...ional act1vitiea within
the area (hereinafter Nthe Dist.r1ct.Jr); and
WHEREAS, on July 10, 1990, the City council of the City of
.
Santa Monica adopted Ordinance Number 1531 ceca), a~endinq
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Ordinance Number 960 (CCS) 'tct change the addit.ional business.
licen.e tax levied in the District to a reduced pereentaqe of the
general business licen.. tax: and
WH~, the city Council of the City of Santa Monica
desire. to again .mend OrcUnanc. Nmn~r 960 cecs) in order t.o
chanqe the additional buaine.. licenae tax l.viea in the District
tram a percenta;e ot the general business license tax amount to a
flat. rat. amountt and
,
WHEREAS, under &n4 pur8uant to~th. provisions of Part 5 ot
Division 18, comm.ncinq with Sect.ion 36000 or 'the Str..t. ,
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High.yay. Cod.. (hereinafter .om.tim.. referred to aa "said law"),
on September 2S, 1990, the Cit.y C:ol.1neil a40pted Re.olutlon NWlftker
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8091 (CCS) declarinq ita 'intention to chanqe 'the add-iotional
business licen.. tax levied in the Di.trict and ..t~in9 a publio
baarinq an such matter a. require4 ~y said law, and
WHEREAS, sail! a..olution Nu~hBr 8091 (eCs) was duly
published, capi.s thereof war. d.l.lly mail.1i to each business
lic.n.. holder in ~he District and posted in public plac.. in the
Distri:t; aa provided by .aid law, and
WHEREAS, as specified in ..id Resolution N~ar 8091 (eeS),
a haarinq eone.~n1nq the proposed chanqe in the additional tax
lev1e<.1 in the District was held :before the city council on
October 23, li90, ~in the City Council Chambers located at 1685
Main str9.~, in t.~e city ot Santa Honica, and
WHEREAS, at said hearing all written and cral protest. made
or filed were dUly heara, *v!dance fo= And a9sinst the proposed
action was received, and a ~ull, fair, and complete hear1n; was
.,.
granted and held before the City Counci11 and
WH!1U:AS, at said hearinq all protes1:., both writt.n and
oral, made or tiled, were duly overruled and denied and the City
Council d.termined that there i8 no majority protest within the
meaninq of Section 36023 ot the Str..t8 , Highways Code,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY or SANTA
MONICA DoIS ORDAIN AS FOLLOWS:
SECTION 1. Section 2 of Ordinance Number 960 (CCS) is.
amended to chanqe the additional ~u.1n... licens. tax levied in
the District and shall read .s tollow.:
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SECTION 4. That in ad4ition to the
9aneral business licen.. tax (hereinafter
8ometim8S reterred to aa "business
licen.. f.."), an additional buaineae
lice.. ta)C i. herel)y imposed upon
buaineila lic.na. holc1er. OCQupyinq
business premises in the area ~h the
tollowint:f .mount.~ One Hu.nclrelS Dollars
($100.00) at a flat rate tor each retail
~nd recreatioq,and entertainment busin...
in the area; '~r;y Collars ($40.00) a~ a
flat rate tor .ac~ _8Qent/broker, auto
dealer r ecntractor I .!)~~!'i'trac1ror I 0 I
.
~.cial ty contractor, cOrrJ~~a~. C1l
Admin18tra tl va headquart.er. t 1!I~nufact.ur_
~rsr prot...icn.. .ervice., whole'Al.~n
~nd utilities b~s.in... in the ,~~_~. Said
ad4itional buaine.. license tax shall be
payable .. tollows: Durinq Fiscal Year
1990-91, .aid additional bu.1n8.8 tax
shall be due on or before February 1.5 ,
1991. Thereafter, .aid add! ticnal
business lie.nee tax shall be payable
Qoncurran1:ly and at the aam. time as the
general business license ~ax. For
failure to pay .aid additional license
tax on the due date thereOf, penal ties
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shall b. axac'tad as set forth in section
6015 of the Santa Monica Municipal Code.
SECTION 2. Ordinance N~.r 1531 (CCS) i. hereby repeale~
in its entirety. The repeal of said Ordinanc. Nt~mber 1531 (CCS)
shall not pr.ven~ or otherwi.. affect any pro..cutions, whether
commenced or not yet 1nit1atad, that are brought 'to enforce
compliance with Ordinance Number 1531 (CCS) f whioh violations
occurred prior to the atteotive date ot the repeal.
,SECTION 3.
All protests, both written and oral,. are
overruled and deniea, and the City Council finds that there is no
:!Iajority protest within t..~. meaninq of Section 36023 of the
Streets and Highways Code.
SECTION 4. Any provision ot the Santa. Monica MUnicipal
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Code o:=' appendices thereto inconsistent. with the provision. of
thi. Ort!inance, to t.he extent ot such lnconsistenci.. and no
further, are hereby repealed Qr modified to that extent neeesaary
to affect the provi.1ons of .this Ordinance.
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SECTION 5. If any secticn, Subs8cticn, ..nt.nea, olausa,
or phrase of this Ordinance i8 for ~ny reas=n held to be invalid
cr unocn8titutional by a decision of any court ot competent
jurisdiction, such decision shall net affect the validity of the
remaininq portions of thi. Ordinance. The city Council hereby
declares that i~ vould have pa...d this Ordinance, and each and
eV4ry ..ction, sub..ction, sentenee. claus., or phrase not
~.c.lar.d inva.l iel or unconstitutional wi thcut reqard to whether
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any portion ot the ordinance would be aubsequently declared
invali4 or unconstitutional.
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SECTION 6. The Mayor shall .iqn an~ the City Clark shall
att..t. t.o the passage of thi. Orainanee. The city Clerk ahall
cau.. the samll to ))e publisber! once in the ot:101a1 newspaper
within 15 day. after its adoption. Thi. ordinance ahall become
effective af~.r 30 day. from ita adoption.
APPROVEl) AS TO FORK:
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Roai~~ K. MYERS
City Attorney
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