SR-8-A (146)~r' ~~ '~ ~~~'~ ~ ~ ~~
I ~~p :
~ a~ ~ ~
~
F 1RESOl1RC~ISNAREIGIN~NSHISTAFREPTIM5BIA1 RD WPD
Cour~c~! Meet~ng April 13, ~ 999 Santa Monica, Cahfornia
TQ Mayor and C~ty Co~na~
FR4M City Staff
SUBJECT Recammendat~on That the City Council Intraduce For F~rst Readmg of an
Qrdinance to Modrfy and Amend khe Main Street Business Impro~emen# Area
Assessment and Repeal Incons+stent Prvv~s~ons of Ordmances Number 9303
and 132${CCS) Vlfiich Established the Previous Rates and Methods of
Colke~t~on Far That Bus~ness Improvement Area
This repart recommends that the CFty Councr! introduce for first reading of the attached
ord~nance to mod~y and amend the Mam Street Busmess {mprovement Area Assessment
and repeal 4nconsistent provis~ons of OrdEnances Number 1303 and 1328 (CCS) which
established the prev~ous rates and methods of collection for t~at Business lmpra~ement
Area
Backaround and ~isc.~assion
Qn Ma~ch 23, 1999, the City Counc~! appro~ed Resolution No 9381, w#~ich declared ats
~ntent~on tv modify and amend the Ma~n Street Busmess improvemer~t Area (BiA}, and set
a pubfic hearir~g far first reading of the proposed vrdmance on April 13, 1999 This
Resolut~vn was brought ta Counc~l at the request af the bus~nesses on Ma~n S#reet, whach
w~shed to amend the assessment fees and methods of callectran for the Mam Stree#
Busmess lmprovement Area ("B!A'), culmi~ating several months of discussion amang the
~
~~4 I ~
APR ~ 3 ig~
merchants and bus~nesses af Ma~n Street
~rdmance 1606 {CCS), which author~zes the Gity tv impose assessments on busmesses
withm a parkmg and bus~ness ~mprovement area and establEShes the requarements and
procedures for establishing or amendmg such BIAs, requires that notices be mailed and
publ~shed regardmg the resalution of mtent and a public hearing be held Staff has
prepared and mailed notices regarding this publ~c hearang to impacted Busmess License
Holders within the area of the Ma~n Street BIA and published the Resolution of Intent No
9389 (CGS) more #han ten days in ad~ance as requfred by Ordinar~ce No 1606 (CCS)
BudaetlFEnancial Imoact
The proposed business ~mpra~ement area fees from Main Street merchants are protected
ta be approx~mateiy $91,500 per year annually The current contract with the Santa
Monica Chamber of Commerce to adm~r~~ster these funds allaws for a 5% retentian by the
C~ty This amount would be approximately $4,575 00 which staff calculates would be
sufficient to co~er adm~r~istrati~e casts associated with prmting, postage, and biffmg, as this
would be done canc~arrently with t#~e Busaness License renewal There would be no other
finar~c~aVb~dgetary ~mpacts
Recommendation
City staff recommends that tF~e City Council introduce for first reading of the attached
ordmance to modify and amer~tf the Main Street Business Improvement Area Assessment
~
and repeal ~nconsrstent provistions of Ordmance Number 13a3 and 1328 (CCS) whjch
established the pre~ious rates and methods of cailection for that Business Impro~ement
Area
prepared by JefF Math+eu, Director, Resource Management Departmer~t
Gwen Pentecos#, Sr Admin Ar~alyst, Economic Development Di~
Attachment Ordmance
CA f attylmunillawslmoxlmainst
City Council Meeting 04-13-99 Santa Mon~ca, Galifornia
ORDINANCE NUMBER CCS
{City Council Series}
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONfCA
AMENDlNG AND MODIFYING THE MAIN STREET BUSINESS IMPROVEMENT
AREA ASSESSMENT DISTRICT, REPEALING ~NCONSISTENT PROVISIONS OF
ORDINANCES 1303 ~CCS) and 1328 (CCS) AND LEVYING AN ASSESSMENT ON
BUSINESSES WITHIN SUCH MAIN STREET BUSINESS IMPRQVEMENT AREA
WHEREAS, on March 23, 1999, the City Gouncil af the City of Santa Monica
adopted Resalutior~ Number 9381 {CCS), entitled "A Resoiution of the City Cauncil of the
C~ty of Santa Mon~ca Declar~ng Its Intent~on to Modify and Amend the Matn Street Bus~ness
Impravement Area Assessment District and Repeal Resolut~on Number 9018 {CCS)",
wh~ch set a publEc hearing for April 13, 9999 at 7 00 p m in the #emporary City Council
Chambers located at the Main Library Auditanum at 3 334 S~xth Street, Santa Monica,
California for purposes of considermg the modi#ication and amendment of such Main Street
Bus~ness lmprovement Area, and
WHEREAS, ordinance Nurnber 1606 ~CCS) of the City of Santa Monica, adopted
November 26, 1991, as amended by Ordinance Number 1845 ~CCS), adopted March 19,
~ 996 (here~nafter calfectively "Ordinance No 16~6") sets forth the procedures go~ern~ng
Business Improvement Areas within the City, and
~
WHEREAS, all required public notices ha~ing baen giver~, the public hearing
was held on April 13, 1999 at the scheduled time and locatio~, at which time the City
Counc~l heard ail protests and recei~ed e~~dence for or aga~nst the proposed mod~f~cat~an
and amendm~nt of the Main Street Business Impro~ement Area and the levy af an
assessment on busmesses withm the Mam Street Business Improvement Area, and
WHEREAS, the City Counc~l, after alf protests, ruled that there was nat a ma~ority
protest which would terminate the praceedings, and thereafter made a determination to
modrfy and amend the Main Street Bus~ness lmpra~ement Area,
NOW, THEREFORE, THE CITY COUNCIL OF THE CfTY OF SANTA MONICA
D4ES ORDAIN AS FOLLOWS
SECTION 1 BoundarEes of Main Street Business imorovemen# Ar~a
The Main Street Business Improvement Area (`Main Street BIA") which is to be
modified and amended is comprised of businesses located on property bordering on e~ther
s~de of Main Street from Pico Baule~ard ~n the north to the so~ath city limits on the south
and on either s~de of OcEan Park Boule~ard, Hill Street, Ashland Avenue, Kinney Straet,
Pier AWenue, and Marine Street between Neilsan Way on the west and 5econd Street an
the east
SECTIQN 2 Businesses Subiect to Assessment
The businesses located withm #he boundaries of the Main Street BIA shall be sub~ect
2
to the provisians of the assessment set forth herem
SECTION 3 Amount of Assessment
An assessment will be levied against all person or entities operating a business
establishment within the Main Street BIA Forfees due July 1, 1999 and therEafter, unless
amended by the City Council, the Main Street BIA assessment w~ll be a fee equivalent to
the follow~ng
Bus~ness Assessment Annual
Classificati~n Fee Amount Ma ximurn
Retail 1 x Bus~ness License Tax* $2,000 00
Recreation and $1 ~0 QO Fiat Fee $ 100 00
Entertainment
AgentlBroker $10a QO Flat Fee $ 100 00
ContractarlSubcontractor $100 00 Flat Fee $ 100 OQ
CorporatelAdministrative $100 00 Flat Fee $ 100 00
Headquarters
Profess~ar~s ~100 00 Flat Fee $ 100 00
Manufacturers $100 00 FEat Fee $ 1 QO 00
Services $100 OD Flat Fee $ 100 00
Wholesalers $1 a0 00 Flat Fee $ 1 QQ 00
Util~ties 5100 00 Flat Fee ~ ~ aa ao
* Busmess License Tax rates are set forth in Article 6 of the Santa Monica
MunECipal Code
3
SECTIQN 4 Exemotion fpr Businesses Holdina Home Occuoation Permits
The assessment shall not apply to any person operating a business from his or her
principal place af residence within the Main Street BIA and for which a homeoccupationn
~ermit has been ~ssued in accordance with the pra~isions of Article IX of the Santa Monica
Municipal Code
SECTION 5 Levy af Assessment to Fund Improvements and Activities
The ~mprovements and act~~~t~es ta be prov~ded in the Ma~n Street BIA w~ll be fiunded
by the levy of assessments described in Section 3 above The revenues from the levy of
such assessments shall be used excfusi~ely within the Main Street BIA described here~n
and shall nat be used to provide improvements ar activities outside of such BIA
SECTION fi Findina of Benefit
The bus~nesses and property w~thin the Main Stree# BIA described herein wil! be
bene'fited by #he impro~ements and activities funded by the assessments proposed to be
levied
SECTION 7 Use of Assessment Revenue
The assessments lev~ed within the Main Street BIA, less 5% retamed by the City for
the costs of collection and adm~nistration, shall be used for any of tF~e following purposes
1} General promotion and marketmg of commeraal trade act~~ities withm the
Business Impro~ement Area, promotian of publ~c events and decoration of
any public pface in the area
4
2) Suppsemental ope~ation ar~d ma~ntenance act~~~t~es w~th~r~ the Main Street B!A
as required
3} Any other purposes allowable under Ordinance 1606 (CCS}, ar any
amendment to Ord~nance 1 B06 (CCS)
SECTION 8 Time and Collectfon of Assessments
The assessments levied hereunder shall be payable concurrently and collected at
the same t~me and ir~ the same manner as #he general business license tax For failure to
pay said assessments on the due date tF~ereof, penalties shall be exacted as set forth ~n
Section 6 04 16~ of the Santa Mon~ca Municipa! Code All pro~isions set forth in the Santa
Mortica Municfpal Code regardmg business classificatian, business audit, reportmg period,
penalt~es for delinquent payment and similar issues, shall be applicable to the assessments
le~~ed hereunder
SECTfON 9 Administration
The proceeds of the assessments collected hereunder shall be adm~nistered as
provided by a contract between the City and an organization that is appraved by the City
I!
1/
/!
!/
5
SECTION 10 Reneal of InconsistencEes. Mod~frcation and Amendmenf of
Mam Street BIq,
The prov~s~ans set forth in Ordinance Number 13D3 {CCS}, as amended by
Ordinance Number 1328 ~CCS), whic~ ~stablished the orEginal Main Street BIA are hereby
repealed to the extent they are inconsistent with the pro~~sians set forth in this Ordinance
T~e mo~~fied and amended Main Street BIA shalf be as described herein ar~d sub~ect to the
procedures af Qrdinance No 1606
Any provision of the Santa Monica Municipal Code or append~ces thereto
mconsistent with the pro~isions of this Ordinance, to the extent af sucl~ inconsistencies and
no fur~her, are hereby repealed or modified to t~at extent necessary ta effect the ~ara~isions
af this Ordinance
SECTION 11 Partial In~alidity
If any section, subsect~on, ser~tence, clause, or phrase of this Ordinance is for any
reason held to be inva~id or unconstitutional by a decision of any court of competent
~urisdiction, such decis~on shall not affect the validity of the remaining por~ions of th~s
Ordinance The City Council hereby declares that it would have adopted th~s Ordinance,
and each and e~ery sect~on, subsection, sentence, clause, or phrase not declared invalid
or unconstitutional w~thaut regard to whether any portion of #he Ordinance would be
subsequently declared invalid or unconstitut~onal
6
~
SECTION 12 Collection of Assessments Le~ied Prior ta Adootian of
This Ordinance
Notwithstanding the repeal of pro~isions of Ordinances 1303 and 132$ (CCS), and
the mod~ficat~on and amendment vf the Mam Street BIA, any assessments which were
le~ied under such pr,or ardinances and remain unpaid by any busi~ess shall contEnue to
be due and ow~ng by such businesses The City may take afl ap~ropriate actions to collect
such past d~e assessments, and shall ha~e tl~e option of collecting them at the time and
in the manner as provided in this Ordinance
SECTION 13 E~~tive Date
The Mayor shall sign and the City Cierk shall attest to the passage of this
Ordinance The City Clerk shall cause the same to be published once in tl~e officiaf
newspaper with~n 1~ days after its adopt~on
APPRQVED AS TO FORM
'~~.s~.~~~ ~
~ _ .~.~
MARSHA JQ~ES MDUTRfE
Ctity Attorney
~