SR-8B (13)
RMD:JPM:JM/montfeeord
CIty Council Meeung: May 23, 1995
88
Santa Moruca, CalIfornia
MAY 2 3 1995
TO' Mayor and City Council
FROM' City Staff
SUBJECT: Ordmance for Introduction and FITst Readmg Amendmg Ordmance 960
(CCS) to Change the Assessment Amount Levied in the Montana Avenue Busmess
Improvement Assessment DIstrict
Introduct1on
This report recommends that the CIty CouncIl introduce the attached Ordmance amendmg
Ordmance 960 (CCS)) to change the assessment amount leVIed in the Montana Avenue Business
Improvement Assessment District, as requested by the Montana Merchants AsSOCIatIOn, for fITst
reading.
Back~ound
On Apnl25, 1995, the CIty CounCIl approved ResolutIon Number 8894 (CCS) declanng Its
intentIon to change the assessment amount leVIed m the Montana Avenue Busmess 1m provement
Assessment Distnct. The fee, which is paId concurrently With the general busmess hcense tax 15
currently $100 per year for retaIl, recreation, and entertainment businesses, and $40 per year for
professional and servIce busmesses
The request to change the assessment amount has come from the Montana Merchants AsSOClatIon
which is seeking ways to take a more active and comprehensive approach to marketIng and
promoting the DIStriCt. Followmg several months of prehrnmary diSCUSSIOns, a speCIal meeting of
the Merchants AsSOCIatIon was held to conSIder a change ill the existing fee. At the November
10, 1994 Special Assessment Tax Meeting, the twenty-four merchants present unanimously voted
to double the current assessment to $200 per year for retailers, and $80 per year for profeSSIOnal
and serVIce businesses TIns action was followed by a survey letter from the Merchants
a,s.
AssocIation in January. 1995. dehvered by hand to each of the 320 businesses wIthm the Dlstnct,
indicating the mtention to request that the CIty CouncIl double the assessment. ThIs survey of
merchants requested all those opposed to any change in the assessment fee to express theIr
opposition by telephone, and to attend a subsequent Merchant Association meetmg to give further
mput. In response to the 320 letters sent. twenty-one (21) opposing responses were received and
299 businesses dId not millcate OpposlUon. A copy of the letter is included as Attachment B.
Notification Process
Notice of the pubhc meetmg held on April 25, 1995. and today's public hearing was pubhshed 10
the Outlook on Apnl 3. April 10. and AprIl 17 10 accordance WIth the Brown Act provisIOns
requiring publication of the noUce at least forty-five days prior to the pubhc heanng. In addItion,
notices of the pubhc meeung and the public heanng were sent to all business license holders In the
DIStrict on April 3. 1995. The adopted Resoluuon of Intention was published 10 the Outlook on
May 6,1995 and a completed copy of the Resoluuon was mailed to each business license holder in
the District and duly posted m the DIStrict wlthm ten days of today' s pubhc hearing ill accordance
WIth Section 36000 of the Street and HIghways Code. To date. one letter has been receIVed m
protest to the proposed mcrease and IS mcluded as Attachment C.
Bud2etIFlscal Impact
The current assessment generates $22,325 in revenues annually. The mcrease In the assessment
will generate an estllTIated $43.720 in revenues dunng FY 1995-96.
Recommendation
It is recommended that the City Council introduce the attached Ordinance amending Ordmance 960
(CCS) to change the assessment amount leVIed 10 the Montana Avenue Business Improvement
Assessment DIStrict
Prepared by: Jeff MathIeu. DIrector of Resource Management
Judith Meister, Asset Manager
Linda Moxon, Deputy CIty Attorney
Attachments: A: Ordinance
B' Montana Merchant Association Letter
C. Protest Letter
ATTACillIE;;;T A
~
CA:f:atty\muni\laws\mox\montana.2
city Council Meeting 5-23-95
Santa Monica, California
ORDINANCE NUMBER
(CCS)
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING ORDINANCE NUMBER 960(CCS)
TO CHANGE THE ASSESSMENT LEVIED IN THE
MONTANA AVENUE BUSINESS IMPROVEMENT ASSESSMENT 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 assessment (the "Fee") for the general
promotion of business and professional activities within the
Montana
Avenue
Business
Improvement
Assessment
District
(hereinafter "the District"); and
WHEREAS, on July 10, 1990, the city Council of the City of
Santa Monica adopted Ordinance Number 1531 (CCS) in order to amend
the Fee levied in the District; and
WHEREAS, on November 13, 1990, the city council of the city of
Santa Monica adopted Ordinance Number 1558 (CCS), amending
Ordinance Number 960 (CCS) in order to amend the Fee levied in the
District; and
1
WHEREAS, under and pursuant to the provisions of Part 5 of
Division 18, commencing with Section 36000 of the streets &
Highways Code (hereinafter sometimes referred to as "said lawn) on
April 25, 1995, the city council adopted Resolution Number 8894
(CCS) declaring its intention to make additional changes in the
amount of the Fee levied in the District and setting a public
hearing on such matter as required by said law; and
WHEREAS, said Resolution Number 8894 (CCS) was duly published,
copies thereof were duly mailed to each business license holder in
the District and posted in public places in the District, as
provided by said law; and
WHEREAS, as specified in said Resolution Number 8894 (CCS), a
hearing concerning the proposed change in the fee levied in the
District was held before the city council on May 23, 1995, 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 against the proposed action
was received, 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
2
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 1. Section 2 of Ordinance Number 960 (CCS) is amended
to change the fee levied in the District and shall read as follows:
section 2 .
That in addition to the
general business license tax (hereinafter
sometimes referred to as nbusiness license
fee"), an assessment is hereby imposed upon
business license holders occupying business
premises in the area.
said assessment (the
"Fee") shall be at the following rates:
Business Category
Retail
Entertainment
$ 200.00
200.00
200.00
80.00
80.00
80.00
80.00
80.00
80.00
80.00
Recreation
Agent/Broker
Auto Dealer
Contractor/Subcontractor
Corporate/Administrative
Headquarters
Professions
Manufacturers
Services
3
Wholesalers
utilities
80.00
80.00
Said Fee shall be payable concurrently and at
the same time as the general business license
fee. For failure to pay said Fee on the due
date thereof, penalties shall be exacted as set
forth in Section 6.04.160 of the Santa Monica
Municipal Code.
SECTION 2. All protests, both written and oral, are overruled
and denied, and the City Council finds that there is no majority
protest within ~he meaning of Section 36023 of the Streets and
Highways Code.
SECTION 3. Any provision of the Santa Monica Municipal Code
or appendices thereto inconsistent with the provisions of this
Ordinance, 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 4. 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
4
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 any portion
of the Ordinance would be subsequently declared invalid or
unconstitutional.
SECTION 5. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The city Clerk shall cause
the same to be published once in the official newspaper within 15
days after its adoption. This ordinance shall become effective
after 30 days from its adoption.
APPROVED AS TO FORM:
/11/ '~ _ }.. l
/fLif.../-~L<~rvk-0 1 ~c.'~~<-
MARSHA JONE$)MOUTRIE
city Attorney
5
_~7::_:' C~~!.:::::
.....
SHOPS & SERVICES SETWEEN 7rn & 17tn ST>lEET
,
January 25, 199)
Dear Montana Avenue Merchdn~.
At our November 10, 1994 t Spec:.al Assessment Tax Meet..:..ng, the
~ontana Avenue Merchants ~n attendance voted unantmously to
1ncrease our current assessment tax. The na]Or1ty of store owners
present, overwhelm~ngly des~re a more aggress~ve and comprehens~ve
approach ~n our ongoing JOINT ADVERTISEMENT actlvlties. It LS also
the opinlon that 1n order to accomp11sh thlS, wlth any degree of
profess~onali5m. more funds dre needed.
HistoTlcally our annual assessment of S100 per year, per retailer
and $40 per year. per profess1onal, has been ~nsuff:Lc~ent 1n
ma1nta1n1nq a ser~ous market~ng campa1qn for our upscale bUS1ness
d:Lstr~ct. In order to fac1l1tate a gt~onger market:Lng approach
W~~~ more bUYlng power, lC was voted to double our current
assessment to S200 per year, per reta~ler and $80 per year, per
profess~onal. This tax increase would allow us to upgrade our two
Montana Avenue annual funct~ons (open house &. sidewalk sale),
par~~cipate ~n selected n~spr~nt med1a, produce selected
telev~sion and radlo spots, as well as c=eate an ~nvestment plan
for seasonal decoratlons spec~fically des~9ned for Montana Avenue~
Before we go to C1.ty Counell wTch a formal request for an
assessment 1ncrease, 1t: lS ~mportant that we hear from you....
Please phone my of:~ce by February 15th at 828-7748,
Ldent1fy your store & your name, and vote;
"YES. in favor of dOubl1.ng your assessment, or
~NO. not :Ln favor of doubling your assessment.
Remember. not. phonlng 1n a vote is vot~ng .YES" that you ARE 1n
favor of a 1996 assessment tax increase. ( $200.00 per retailer and
$80.00 per profess1onal )
.l.n advance for your response .In t.h~s very important
w111 look forward to seeing you at our February 22nd
lease mark your calendar.
R . Montalvo
Cha1rperson Montana Avenue Merchant Comm~ttee
<;nrmmrp{j hv ~.antd ~f'lnlC'".a Chamber of Commerce 1460 Fourth Srr~t Santa Monica CA 90401
~Cltl OT'I\.t:rV/I; 1t:1t:\.U~Jler fU",U . 4-lll-:l~ ,IU,U4AII'I d,lllY Ur- ~ANIA II'IUNJJ"'A....
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AITACmIE~T C
fA~ 10 JU Dim
?/JJ-r71v
j~ 'ft ~'1
Apri.l l~, 1995
Mayor and City Counoi.1
Cl"ty Hall
1685 Main Stree~
Santa Monica, CA 90401
SUBJECT: Protest to Proposed Increase in the ABs8ssment Fee
tev1ed in the Montana ~venue Business Improvement
Assessment District.
Gentlemen:
I am 8tronK~Y protest1n~ the proposed inerease in the assess-
ment ~ee levi.ed i.n the Montana Ayenue business ~mprovement
assessment district. r am presently paying a very high fee of
$115.00 (whiCh includes a 140.00 Montana Avenue Promo~ion Tax.
As you know, onee the tees axe raised, they never go lower, only
higher.
Rai.8ing ~he ree would be 8 financial hardship tor me.
Again, I am stron~lY DroteBtin~ the proposed ~ee increase.
Sincerely~
'vYl CPv~ ~ C ~
MarjOri~ Coon-Travel Agent
Business License Number 070199 C
Business Addre6s: TOPS IN TRAVEL
1409 Montana Avenue
Santa Monica, CA 9040'
Home Address (Mailing Address)
M.arjor1e Coon
35~-21st Street
Santa Monica OA 90402-24l7
(Telepbone; ~310)393-1097)