SR-6-B (74)
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CA:RMM:moxdOOO6/hpca1/pc ~O\J Z 6 1991
city Council Meeting 11-26-91 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
At its meeting on November 12, 1991, the city Council
introduced for first reading an ordinance which provides an
alternative procedure for establishment of parking and business
improvement areas in which assessments can be levied for
specified purposes. The ordinance is now presented to the city
council for adoption.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be adopted.
PREPARED BY: Robert M. Myers, city Attorney
Linda A. Moxon, Deputy City Attorney
(9-.3
NOV '2 6 1991
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Clty Council Meeting 11-26-91 Santa Monica, California
ORDINANCE NUMBER l606(CCSl
(City Council Serl.es)
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 lightl.ng,
parks, and fountalns for the benefit of the area.
(b) Decoration of any public place in the area.
(c) Promotlon 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) Furnlshing of music in any public place in the area.
(e) The general promotion of retall trade activities in
the area.
( f) Activities to manage traffic generated by employees
and customers of buslnesses wlthin the area.
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SECTION 2. "Parking and Business Improvement Arean or
"Area" Defined. "Parking and business improvement area II or
"area" as used in thlS ordinance means an area designated as
provlded in this Ordinance.
SECTION 3. nBusiness" Defined. "Business" as used in this
ordinance means all types of business, including professlons.
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
lS to be used within the scope of the above purposes. The City
Councll may enter lnto 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
Ordlnance is lntended to be construed liberally and in the event
any provision thereof should be held invalid, the remaining
provlsions shall remain ln full force and effect.
SECTION 6. Manner. A parking and business improvement
area may be established as provided in this Ordlnance.
SECTION 7. Resolution of Intention: Contents. The City
Councll shall adopt a resolution of intention to establlsh an
area. The resolution shall contaln the followl.ng 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 conslder establishment of an area.
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(c) The proposed uses to WhlCh 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
classl.ficatl.on is to be used.
(e) A statement that the improvements and activities to be
provl.ded l.n 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 activities
outside the area.
( f) A finding that the businesses and the property withl.n
the business and lmprovement area will be benefited by the
improvements and actlvitles funded by the assessments proposed to
be levied.
(g) The time and manner of collecting the assessments.
SECTION 8. Notice of Hearing; Publication; Mailing.
Notice of a hearing held pursuant to this Ordl.nance shall be
given by:
(a) One publicatl.on of the resolutlon of intention in a
newspaper of general circulation in the City.
(b) Mailing a complete copy of the resolution of intention
to each busl.ness l.n the proposed, or established, area.
Publication and mailing shall be completed at least ten (10 ) days
prior to the time of the hearlng.
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
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protests and recelve evidence for or against the proposed action;
the city Councl1 shall also rule upon all protests which
determlnation shall be final; and the City council may continue
the hearing from time to time. Proceedings shall terminate if
protest 15 made by a maJority of the bus1nesses ln 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 boundarles of
the proposed area, the hearlng shall be continued to a time at
least 15 days after such decision and notice shall be given as
prescribed in section 8, showlng the boundary amendments, but no
resolut1on of lntention 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 tl.tle 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 bUSlnesses 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 lmprovements 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
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area shall not be used to provide improvements or activities
outside the area.
(f) A f~nding that the businesses and the property withl.n
the business and improvement area will be benefited by the
improvements and activities funded by the assessments proposed to
be levied.
( g) The t~me and manner of collecting the assessments.
( h) A statement that a parking and business improvement
area has been established.
(i) The uses to WhlCh 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 Sect~on 1, establish and modify one or more separate
benefit zones based upon the degree of beneflt 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 provlded for disestablishment of an area.
SECTION 14. Reasonable Classification; Factors. For
purposes of the assessment to be imposed pursuant to this
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Ordlnance, the City Counclol may make a reasonable classification
of buslonesses, glving 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, lmposed pursuant to thloS Ordinance, for a period
not exceeding one year from the date they commenced business in
the area.
SECTION 16. Collection; Time and Manner. The collection
of the assessment imposed pursuant to this Ordinance shall be
made in such manner as the City Councll 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 hear long before the City Council. The city
Council shall adopt a resolution of intentlon to change the
assessment or the uses to which the revenue shall be put at least
flofteen (15) days prior to the hearlng required by thls 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 lmposed on different
classes of bUslness on the same basis or at the same rate;
provlded, however, that the assessment imposed for the purpose of
the acqulosltion, construction or maintenance of parking
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faCllities for the benefit of the area shall be lmposed 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
wlthin the area, the total business volume generated withlon 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
Counclol may dlsestabllsh an area by ordinance at a hearlng before
the Clty Council. The city council shall adopt a resolution of
intention to disestablish the area at least fifteen (15) days
prlor to the hearing requlred by this section. The resolution
shall give the time and place of the hearlng.
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 bUSlnesses then located and
operating within the area ln which assessments were levied by
applying the same method and basis that was used to calculate the
.
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assessments levied in the fiscal year in which the area ia
disestablished.
SECTION 22. Other.
(a) Assessments levied for the purpose of providing
lomprovements 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 activities
which confer special benefits upon the buslonesses for which the
improvements and activlties are provided.
(b) This ordlnance does not affect or limit any other
provisions of law authorizing or providing for the furnishing of
improvements or activl.ties or the ral.sing of revenue for these
purposes.
SECTION 23. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent wl.th the provislons 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, subsectloon, sentence, clause,
or phrase of thl.S Ordinance l.S 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 Counclol hereby
declares that 1 t would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
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declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstltutional.
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
effectlove after 30 days from lts adoption.
APPROVED AS TO FORM:
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ROBERT M. MYERS .
Clty Attorney
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Adopted and approved this 26th day of November, 1991.
9fMa~rb
I hereby certlofy that the foregoing Ordinance No. 1606(CCS)
vias duly and regularly introduced at a meeting of the City
Council on the 12th day of November 1991; that the said Ordinance
was thereafter duly adopted at a meeting of the City Council on
the 26th day of November 1991 by the following council vote:
Ayes: Counc~lmembers: Genser, Holbrook, Katz, Olsen,
Vazquez, Zane, Mayor Abdo
Noes: Councilmembers: None
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
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