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SR-213-007 (10) . . J-1I JUN 2 6 1990 CA:RMM:rnoxl12/hpw city Council Meeting 6-26-90 .2/3 -pff:J?- Santa Monica, California STAFF REPORT TO: Mayor and City council FROM: City Attorney 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 At its meeting on May 8, 1990, the city Council adopted an ordinance increasing the general business license tax rates. Due to such increase in the general business license tax rates, adjustments are required to be made in all additional business 1 icense fees or assessments which are based upon the general business license tax rates. The additional business license tax levied in the Montana Avenue Business Improvement Assessment District fee requires such adjustment. The Montana Avenue Business Improvement Assessment District was established pursuant to Sections 36000 et seq. of the streets and Highways Code, which requires that any change in the assessment fees levied in the District must be done in accordance with the procedures of such law. Streets and Highways Code Section 36061 requires that the City Council adopt a resolution of intention to change the rate or additional rate or levy prior to a pUblic hearing on any such proposed change. Accordingly, on May 22, 1990, the - 1 - City Council I-A JUN 2 6 lqal1 . . adopted Resolution Number 8025 (CCS) declaring its intention to change the additional business license tax levied in the Montana Avenue Business Improvement Assessment District, and setting a public hearing on such proposed change. On May 29, 1990, such Resolution of Intention was amended by adoption of Resolution Number 8030 (CCS) in order to correct an error in the date of the public hearing which had been set for the proposed change. The new public hearing on this matter was rescheduled for June 26, 1990. Resolution Number 8030 (CCS), giving notice of such rescheduled public hearing, was duly pUblished, mailed to business license holders in the District and posted at public locations within the District, in accordance wi th legal requirements. The law requires that any change made in the additional rate or levy be made by ordinance after a hearing by the city Council. Accordingly, the attached ordinance is recommended to be introduced for first reading. BACKGROUND Based on business license tax rates which existed prior to May B, 1990, the annual additional Montana Avenue business license tax levied was calculated at 25% of the annual general business license tax rates existing prior to fiscal year 1983-84, with a minimum payment of Ten Dollars ($10.00) and a maximum payment of Two Hundred Dollars ($200.00). The tax generated from the Montana Avenue Business Improvement Assessment District is for purposes of general business promotion in such District. - 2 - . . ANALYSIS Since general business license tax rates have been increased, it is necessary to adjust the calculation formula in order to maintain the amount of tax generated at the level existing prior to May 8, 1990. The attached ordinance would al ter the calculation formula for the Montana Avenue Business Improvement Assessment District by reducing the multiple from 25% to 4%. All other existing provisions, including the minimum and maximum payments amounts, would remain the same. FINANCIAL IMPACT There will be no financial impact. The proposed change will result in the tax being generated in an approximately equivalent amount to the previous tax revenues generated from the District. 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 - 3 - . . CA:RMM:moXlll/hpw city council Meeting 6-26-90 Santa Monica, California ORDINANCE NUMBER (city council 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 license tax for the general promotion of business and professional activities within the area (hereinafter "the Districttt); and 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 nsaid lawn), on May 22, 1990, the City Council adopted Resolution Number 8025 (CCS) declaring its intention to change the additional business license tax levied in the District and setting a public hearing on such matter as required by said law; and WHEREAS, on May 29, 1990, the City Council adopted Resolution Number 8030 (CCS) amending Resolution Number 8025 (CCS) to reschedule the pUblic hearing on the proposed change to June 26, 1990; and - 1 - . . WHEREAS, said Resolution Number 8030 (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 8030 (CCS), a hearing concerning the proposed change in the additional tax levied in the District was held before the city Council on June 26, 1990, 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 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 additional business license tax 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 feen), an additional business license tax is hereby imposed upon business license holders occupying - 2 - . . business premises in the area. Said additional business license tax shall be at the rate of Four Percent (4%) of all other business license taxes for each business in the area. Provided, however, that said additional business license tax shall not exceed TWO HUNDRED DOLLARS ($200.00) nor shall it be less than TEN DOLLARS ($10.00) annually. 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 September 14, 1990. Thereafter, said additional business license tax shall be payable concurrently and at the same time as the general business license tax upon which it is based. For failure to pay said additional license tax on the due date thereof, penalties shall be exacted as set forth in section 6015 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 the meaning of Section 36023 of the streets and Highways Code. - 3 - \ . . 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 unconsti tutional 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 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: p,rhJt "-. ~-- ROBERT M. MYERS City Attorney - 4 -