SR-213-007 (10)
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JUN 2 6 1990
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city Council Meeting 6-26-90
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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
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City Council
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JUN 2 6 lqal1
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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.
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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
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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
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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
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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.
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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:
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ROBERT M. MYERS
City Attorney
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