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SR-8-B (54) 2 / "7 --7 (;..-f :::r- v c -r D-B (! ,..' 0': ' . ,-p,1I' . '-' I ..... V J.... "",I,,; CA:RMM:MOX148jhpw 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. "--8 - 1 - n,.."'I" - t: I_,! . ") fQI)t} Dei J .j r.... . ~~.j~ . 'A 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 - 2 - 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 - 3 - ~'& ~ 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 & - 1 - 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: - 2 - 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 - 3 - 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 - 4 - 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: ~' 1:-?-;*'~ ~ ._~.... ---"-~-4-"..:t~""I'!;. , , ..~., ROBERT M. MYERS city Attorney - 5 - .;:.\- . ,. ~-~:-"':'-.i '- - )(tv~:e2 '?..l5 2/3-~~ CA:RMH:moxl11/hpw City Council X..tinq 10-23-90 Santa Monica, Califcrni~ ... ... 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 .I 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. , --; - 1 - - "4 ~.: ~ ':". 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 " 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.: - AI - ~ - -, - ... 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 - 3 - , - ...: .. '" .. ... .J' _ ~ ... 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 - -, 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. .; 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 ... 4 .. .- any portion ot the ordinance would be aubsequently declared invali4 or unconstitutional. .~ 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: ~~~ Roai~~ K. MYERS City Attorney .. ~ - 5 -