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SR-8-B (102) 7 1---:: - J ;. I _ L< I tr-B CA:RMM:moxd0005/hpca1/pc City council Meeting 11-12-91 NOV 1 219m Santa Monica, California STAFF REPORT TO: Mayor and City Council FROM: city Attorney SUBJECT: Ordinance Authorizing the City to Impose an Assessment on Businesses within a Parking and Business Improvement Area This Staff Report recommends that the City council introduce for first reading the accompanying enabling ordinance which provides an alternative procedure for establishment of parking and business improvement areas in which assessments can be levied for specified purposes. The City's three existing business promotion districts (Montana Avenue, Downtown and Main Street) were established pursuant to procedures set forth in state law (California streets and Highways Code Sections 36000 et seq.) The Downtown and Montana areas were established under the Parking and Business Improvement Law of 1965 and the Main street area was established pursuant to the provis ions of the Parking and Bus iness Improvement Area Law of 1979 (recently superseded by the Parking and Business Improvement Law of 1989). Inquiries and requests have been made by various business leaders concerning expansion of permitted uses of revenues generated by the assessments levied in these parking and business improvement areas. 8-./3 - 1 - NOV 1 2 1991 After a review and analysis of state law procedures for changes in uses of assessment revenues and types of uses permitted under such laws, it was determined that more flexibili ty could be achieved by adoption of a separate city procedure for establishment of parking and business improvement areas, exclusive of the state law procedures. The accompanying ordinance incorporates portions of the state procedures while providing a much broader range of purposes for establishing parking and business improvement areas and levying assessments in such areas. Such expansion of options for uses of the revenues addresses concerns raised by the business communi ty including, but not limited to, means for paying costs of traffic analysis and management and security for the parking and business improvement areas so established. This legislation can be utilized to create new business promotion districts and also provides a method for modifying the existing parking and business improvement areas described above. This ordinance has been developed in consultation with business leaders on Main street and Montana Avenue, areas that have expressed interest in this subject. It is anticipated that businesses on Main street will want to re-establish their district under the new law. RECOMMENDATION It is respectfully recommended that the accompanying ordinance be introduced for first reading. PREPARED BY: Robert M. Myers, city Attorney Linda A. Moxon, Deputy City Attorney - 2 - CA:RMM:rmd1325/hpca1/pc City council Meeting 11-12-91 Santa Monica, California ORDINANCE NUMBER (City council series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AUTHORIZING THE CITY TO IMPOSE AN ASSESSMENT ON BUSINESSES WITHIN A PARKING AND BUSINESS IMPROVEMENT AREA THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. purpose. The purpose of this Ordinance is to authorize the city of Santa Monica to impose an assessment on businesses within a parking and business improvement area for the following purposes: (a) The acquisition, construction or maintenance of parking facilities, benches, trash receptacles, street lighting, parks, and fountains for the benefit of the area. (b) Decoration of any public place in the area. (c) Promotion of public events which are to take place on or in public places in the area, including the provision of security for such public events. (d) Furnishing of music in any public place in the area. (e) The general promotion of retail trade activities in the area. (f) Activities to manage traffic generated by employees and customers of businesses within the area. - 1 - SECTION 2. "parking and Business Improvement Area" or flArea" Defined. IIparking and business improvement area" or Uarea" as used in this Ordinance means an area designated as provided in this Ordinance. SECTION 3. IIBusinessll Defined. "Business" as used in this Ordinance means all types of business, including professions. SECTION 4. Discretion of council as to Use of Revenue; Advisory Boards or Commissions. The City council shall have the sole discretion as to how the revenue derived from the assessment is to be used within the scope of the above purposes. The City council may enter into a contract with any organization whose purpose includes the betterment of the Area for administration of the revenues derived pursuant to this Ordinance. SECTION 5. Liberal construction; Partial Invalidity. This Ordinance is intended to be construed liberally and in the event any provision thereof should be held invalid, the remaining provisions shall remain in full force and effect. SECTION 6. Manner. A parking and business improvement area may be established as provided in this Ordinance. SECTION 7. Resolution of Intention; contents. The City Council shall adopt a resolution of intention to establish an area. The resolution shall contained the following information: (a) Description of the boundaries of the proposed area. (b) The time and place of a hearing to be held by the City council to consider establishment of an area. - 2 - (c) The proposed uses to which the proposed revenue shall be put. (d) The description of the method and basis of levying the assessment, with a breakdown by class of business if such classification is to be used. (e) A statement that the improvements and activities to be provided in the area will be funded by the levy of the assessments. The revenue from the levy of assessments within an area shall not be used to provide improvements or acti vi ties outside the area. (f) A finding that the businesses and the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied. (g) The time and manner of collecting the assessments. SECTION 8. Notice of Hearing; publication; Hailing. Notice of a hearing held pursuant to this Ordinance shall be given by: (a) One publication of the resolution of intention in a newspaper of general circulation in the city. (b) Mailing a complete copy of the resolution of intention to each business in the proposed, or established, area. Publication and mailing shall be completed at least ten (10) days prior to the time of the hearing. SECTION 9. Hearing; Protests; Evidence; continuance; Majority Protest; Termination of proceedings. Whenever a hearing is held under this Ordinance, the city council shall hear all - 3 - protests and receive evidence for or against the proposed action; the City council shall also rule upon all protests which determination shall be final; and the City Council may continue the hearing from time to time. Proceedings shall terminate if protest is made by a majority of the businesses in the proposed area which would be subject to the assessment. SECTION 10. Change of Boundaries; Continuance of Hearing; Notice. If the city council decides to change the boundaries of the proposed area, the hearing shall be continued to a time at least 15 days after such decision and notice shall be given as prescribed in Section 8, showing the boundary amendments, but no resolution of intention is required. SECTION 11. Ordinance Establishing Proposed Area; Contents. If the City Council, following the hearing, decides to establish the proposed area, it shall adopt an ordinance to that effect. This ordinance shall contain the following information: (a) The number, date, and title of the resolution of intention pursuant to which it was adopted. (b) The time and place the hearing was held concerning the formation of such area. (c) The description of the boundaries of such area. (d) A statement that the businesses in the area established by the ordinance shall be subject to the provisions of the assessment provided by this Ordinance. (e) A statement that the improvements and activities to be provided in the area will be funded by the levy of the assessments. The revenue from the levy of assessments within an - 4 - area shall not be used to provide improvements or activities outside the area. (f) A finding that the businesses and the property within the business and improvement area will be benefited by the improvements and activities funded by the assessments proposed to be levied. (g) The time and manner of collecting the assessments. (h) A statement that a parking and business improvement area has been established. (i) The uses to which the revenue shall be put. SECTION 12. Benefit Zones: Establishment and Modification; Assessment Rate. The City Council may, for each of the purposes set out in Section 1, establish and modify one or more separate benefit zones based upon the degree of benefit derived from the purpose and may impose a different assessment within each such benefit zone. SECTION 13. Procedure. All provisions of this Ordinance applicable to establishment or disestablishment of an area also apply to the establishment, modification, or disestablishment of benefit zones pursuant to Section 12. The establishment or the modification of any such zone shall follow the same procedure as provided for in the establishment of a parking and business improvement area and the disestablishment shall follow the same procedure as provided for disestablishment of an area. SECTION 14. Reasonable purposes of the assessment to Classification; Factors. be imposed pursuant to For this - 5 - Ordinance, the city Council may make a reasonable classification of businesses, giving consideration to various factors, including the degree of benefit received from parking only. SECTION 15. Exemption of Newly Established Businesses. Businesses recently established in the area may be exempted from the assessment, imposed pursuant to this Ordinance, for a period not exceeding one year from the date they commenced business in the area. SECTION 16. collection; Time and Kanner. The collection of the assessment imposed pursuant to this Ordinance shall be made in such manner as the City Council shall determine. SECTION 17. Changes in Additional Rate or Levy or uses; Resolution of Intention; Contents. Changes may be made in the assessment or in the uses to which the revenue shall be put as specified in the ordinance establishing the area, by ordinance adopted after a hearing before the city Council. The City Council shall adopt a resolution of intention to change the assessment or the uses to which the revenue shall be put at least fifteen (15) days prior to the hearing required by this Section. This resolution shall specify the proposed change and shall give the time and place of the hearing. SECTION 18. Imposition of Assessment on Different Classes of Business. The assessment need not be imposed on different classes of business on the same basis or at the same rate; provided, however, that the assessment imposed for the purpose of the acquisi tioD, construction or maintenance of parking - 6 - facilities for the benefit of the area shall be imposed on the basis of benefit determined by the City Council after giving consideration to the total cost to be recovered from the businesses upon which the assessment is to be imposed, the total area within the boundaries of the parking and business improvement area, the assessed value of the land and improvements within the area, the total business volume generated within the area, and such other factors as the city Council may find and determine to be a reasonable measure of such benefit. SECTION 19. Purpose of Levy; Use of Proceeds. The assessment levied hereunder must be for the purposes specified in the ordinance and the proceeds shall not be used for any other purpose. SECTION 20. ordinance; Resolution of Intention. The City Council may disestablish an area by ordinance at a hearing before the City Council. The city council shall adopt a resolution of intention to disestablish the area at least fifteen (15) days prior to the hearing required by this Section. The resolution shall give the time and place of the hearing. SECTION 21. Disposition of Proceeds of Assessment or Assets. Upon the disestablishment of an area, any remaining revenues derived from the levy of assessments, or any revenues derived from the sale of assets acquired with the revenues, shall be refunded to the owners of the businesses then located and operating within the area in which assessments were levied by applying the same method and basis that was used to calculate the - 7 - assessments levied in the fiscal year in which the area ia disestablished. SECTION 22. Other. (a) Assessments levied for the purpose of providing improvements and promoting activities which benefit businesses also benefit the property within the area directly or indirectly. Such assessments are not taxes for the general benefit of the City, but are assessments for the improvements and acti vi ties which confer special benefits upon the businesses for which the improvements and activities are provided. (b) This ordinance does not affect or limit any other provisions of law authorizing or providing for the furnishing of improvements or acti vi ties or the raising of revenue for these purposes. SECTION 23. 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 24. 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 any 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 - 8 - declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 25. 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: ~ w.....~ ROBERT M. MYERS U City Attorney - 9 - IfEY/wSS-O -~ NOV 1 2 1991 -c I..in\! ~ q ~Qr,~ l"liJ~ 1. '" Iv,)' ?-~ 'lli" , ) j')Gj ~d" : ~_ ..:;J CA: RMM:fj ld645/hpc/pc City council Meeting santa Monica, California ORDINANCE NUMBER (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE CONTRACT BETWEEN THE CITY COUNCIL OF THE CITY OF SANTA MONICA AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. That an amendment to the contract between the City Council of the City of Santa Monica and the Board of Administration, California Public Employees' Retirement System is hereby authorized, a copy of said amendment being attached hereto, marked Exhibit, and by such reference made a part hereof as though herein set out in full. SECTION 2 . The City Manager is hereby authorized, empowered, and directed to execute said amendment for and on behalf of the city. 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 inconsistenc1es and no further, are hereby repealed or modified to that extent necessary to affect the provisions of th1s Ord1nance. ?- r-C-. I\'.lnv 1 ' .:". ,~Uoo7 ! :....: .""uf - 1 - 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 any 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 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 off icial newspaper within 15 days after its adoption. This Ordinance shall become effective after 30 days from its adoption. APPROVED AS TO FORM: ... ~ - -.... ROBERT M. MYERS city Attorney - 2 -