SR-213-007 (7)
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FD:TJF:br:iirdcabl
City Council Meeting: May 22, 1990
.2/3-~o:r-
MAY ~ ~ l~~O
Santa Monica, California
STAFF REPORT
TO: Mayor and City Council
FROM: city Attorney
SUBJECT: CHANGING THE ADDITIONAL BUSINESS LICENSE TAX LEVIED IN
THE MONTANA AVENUE BUSINESS IMPROVEMENT ASSESSMENT AREA
AND THE ASSESSMENT FEE LEVIED IN THE THIRD STREET MALL
(THIRD STREET PROMENADE) AND DOWNTOWN ASSESSMENT
DISTRICT.
Introduction
At its meeting on May 8, 1990, the City Council adopted an
ordinance increasing general Business License Tax rates. This
report is to recommend that the city council :a) adopt the
attached Resolution of Intent to correspondingly alter the
calculation formula for the additional business license tax
levied in the Montana Avenue Business Improvement Assessment
Area, and b) adopt the attached Resolution to correspondingly
alter the calculation formula for the Third Street Mall (Third
street Promenade) and Downtown Assessment District. The intent
of both resolutions is to alter the calculation formulas so as to
maintain the amount of revenue previously generated for both
districts under Business License Tax rates existing prior to May
8,1990.
Background
Based on Business License Tax rates which existed prior to May 8,
1990, the annual additional Montana Avenue Business License Tax
levied was calculated as 25% of the annual general Business
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MAY 2 2 1990
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License Tax rates existlng prior to FY1983-84, with a minimum
payment of $10.00 and a maximum payment of $200.00. In a similar
manner, the levy of the annual Third street Mall (Third street
Promenade) and Downtown Assessment District fee was calculated as
three times the annual general Business License Tax rates
existing after FY1983-84, with provision for an alternate fee
calculated based on $.12/square foot (FY1990/91 factor) used by
the business and a maximum annual tax of $16,622.93 (FY1990/91
factor). Both the per square foot factor and the maximum tax
amount are adjusted each year by increases in the local CPl. In
addition, a parking credit is available to businesses in the
Third street Mall (Third street Promenade) and Downtown
Assessment District.
Taxes generated from both districts are for general business
promotion in the districts.
Analysis
since general Business License Tax rates have been increased, it
is necessary to alter these calculation formulas in order to
maintain the amounts of taxes generated at levels existing prior
to May 8, 1990.
The attached resolutions would alter the calculation formulas to
be:
Montana Avenue Business Improvement District
Change the 25% multiple to 4%; all other existing
provisions remaln the same
Third street Mall (Third street Promenade) and Downtown
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Assessment District
Change the "Three Times" multiple to "One Time" of the
regular annual Business License Taxi all other existing
provisions remain the same.
Financial Impact
There will be no financial impact. The proposed change will
result in taxes being generated in both districts which are
approximately equal to previous tax revenues.
Recommendation
It is recommended that the City Council adopt the attached
Resolutions, and direct the city Attorney to prepare an Ordinance
to appropriately amend the additional Business License Tax levied
in the Montana Avenue Business Improvement District.
Prepared by: Mike Dennis, Director of Finance
Toby J. Fox, Collections Manager
Linda Moxon, Deputy City Attorney
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Agenda Item #
BEFORE DISTRIBUTION CHECK CONTENT OF
DISTRIBUTION OF RESOLUTION # />:::-.x S-
Counc11 Meet1ng Date ~~~ ~~c
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t:-O
IVe
VOTE: Affl.rmatl.ve: (; --I
Negat1ve: j.--:,,:~
Abstal.n: I
Absent:
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to he s1gned, sealed and filed 1n Vault.
ALL FOR CITY CLERK'S ACTION
ORDINANCE #
Introduced:
Was 1t amended?
Adopted:
ALWAYS PUBLISH ADOPTED ORDINANCES
Cross out Attorney's approval
NEWSPAPER PUBLICATION (Date:
Department Orl.g1nat1ng staff report( Laur1e Lieberman)
Ord1nances only for Attorney ( Claudl.a Thompson) 2
Management Servl.ces Lynne Barrette ORDINANCES ONLY 1
Agency ment10ned l.n document or staff report
(cert1f1ed ?)
SubJect f11e (agenda packet) 1
Counter f11e 1
Others: (Review
Airport
Aud1tor1um
BU11d1ng Dept.
ClEO
for departments who need to know).
Park1ng Auth.
Personnel
Planning
Po11ce
Purchasing
Recr/Parks
Transportat1on
Treasurer
~~ J
Fl.nance
General Servo
Ll.brary
Manager
Fl.re
-----
SEND FOUR COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS
120 Mal.n Street
Avon, New Jersey 07717
4
SEND FOUR COPIES OF ALL ORDINANCES TO:
Rebecca Garrl.do
Santa Mon1ca Mun1c1pal Court
1725 Ma1n Street, Room 118
Santa Mon1ca, CA 90401
4
Total Cop1.es
.3
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CA:RMM:mox98/hpw
City council Meeting 5-22-90 Santa Monica, California
RESOLUTION NUMBER 8025 (CCS)
(City council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SANTA MONICA DECLARING ITS INTENTION TO CHANGE THE
ADDITIONAL BUSINESS LICENSE TAX LEVIED IN THE
MONTANA AVENUE BUSINESS IMPROVEMENT ASSESSMENT AREA
WHEREAS, on July 9, 1974, the city council of the City of
Santa Monica adopted Ordinance Number 960 (CCS) (the "Ordinance")
pertaining to the establishment of a business improvement area to
provide for the levy of an additional business license tax (the
"Fee") for the general promotion of business and professional
activities in the Montana Avenue Business Improvement Assessment
District (the "District"), such Fee to be payable by all business
license holders occupying business premises in the District; and
WHEREAS, such District was established pursuant to the
provisions of Part 5 of Division 18, commencing with section
36000 of the streets & Highways Code (the "Lawn); and
WHEREAS, the Fee is based upon a percentage of the general
business license tax established in Article VI of the Santa
Monica Municipal Code: and
WHEREAS, the general business license tax rates established
pursuant to Article VI of the Santa Monica Municipal Code have
been increased by adoption of a revised Business License
Ordinance on May 8, 1990; and
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WHEREAS, the City Council desires to adjust the amount of
the Fee levied in the District by changing the percentage of the
general business license tax upon which the Fee is based; and
WHEREAS, the law provides that any change in the rate or
levy of the Fee requires that the City Council adopt a resolution
of intention to change such rate or levy at least fifteen (IS)
days prior to a hearing on an ordinance pertaining to such
changes,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. That the city Council hereby declares its
intention to change the additional license tax levied in the
District. The proposed change in such additional license tax
would be to adjust such additional license tax to an amount equal
to Four Percent (4%) of the general business license tax
established pursuant to Article VI of the Santa Monica Municipal
Code. 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 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. That notice is hereby given that on the 11th
day of June, 1990, at the city council Chambers located at 1685
Main Street, Santa Monica, California, a hearing will be held to
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consider the proposed change in the additional license tax for
the District, pursuant to Section 36061 of the streets & Highways
Code of the state of California.
SECTION 3. That the City Clerk shall cause the resolution
to be published once in The outlook, a newspaper of general
circulation in said City, and shall cause a completed copy of
this resolution to be mailed, postage prepaid, to each business
license holder in the District, at his or her business address.
The city Clerk shall also cause a copy of this resolution to be
posted at three (3) public places in the District.
Such
publication, mailing and posting shall be completed at least ten
(10) days prior to the time of the hearing.
SECTION 4. The City Clerk shall certify to the adoption of
this resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
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ROBERT M. MYERS
City Attorney
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Adopted and approved this 22nd day of May, 1990.
'D~ I M~::
I hereby certify that the foregoing Resolution No. 8025(CCS)
was duly adopted by the City Council of the city of Santa Monica
at a meeting thereof held on May 22nd, 1990 by the following
council vote:
Ayes: Councilmerobers: Abdo 1 Finkel, Genser, Jennings,
Reed, Mayor Zane
Noes: councilmembers: Katz
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
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cA:RMM:mox97/hpw
city council Meeting 5-22-90
Santa Monica, California
RESOLUTION NUMBER 8026(CCS)
(city Council Series)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA
MONICA AMENDING THE FEE LEVIED FOR THE OPERATION,
MAINTENANCE, AND REPAIR OF PUBLIC IMPROVEMENTS IN THE
THIRD STREET MALL (THIRD STREET PROMENADE) AND
DOWNTOWN ASSESSMENT DISTRICT
WHEREAS, on August 26, 1986, the city council of the city
of Santa Monica adopted Ordinance Number 1382 (CCS) (the
"ordinance") pertaining to the levy of an annual fee (the "Fee")
for the operation, maintenance, and repair of public improvements
in the Third Street Mall and Downtown Assessment District (the
"District"), such Fee to be payable by all persons doing business
from locations within the District: and
WHEREAS, Section 1 (c) of the Ordinance provides that the
city council from time to time by Resolution may adjust the
amount of the Fee on all or classes of businesses wi thin the
District to the extent necessary to assure that revenues from the
Fee do not exceed the cost of operation, maintenance, and repair
of the public improvements in the District and to assure that the
Fee reasonably relates to the benefits of such public
improvements in the District: and
WHEREAS, the City Council of the Ci ty of Santa Monica
desires to adjust the amount of the Fee by revising the formula
for calculation of such Fee; and
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WHEREAS, the revision of the formula for calculation of the
Fee is necessary to assure that the Fee reasonably relates to the
benefits of such pUblic improvements in the District: and
WHEREAS, on May 8, 1990, the City Council adopted Ordinance
Number 1523 (CCS) which revised Article VI of the Santa Monica
Municipal Code pertaining to business licenses and
classifications, and increased the business license tax rate
structure for each business Classification; and
WHEREAS, the formula for the Fee is based upon the Business
License Tax established pursuant to Article VI of the Santa
Monica Municipal Code,
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA
MONICA DOES RESOLVE AS FOLLOWS:
SECTION 1. The formula for the calculation of the annual
Fee for operation, maintenance, and repair of pUblic improvements
in the District, levied pursuant to the Ordinance, is hereby
amended as follows:
(a) Effective in Fiscal Year 1990-91, and thereafter, the
Fee to be paid by all persons doing business from locations
within the District shall be equal to one (1) times the annual
Business License Tax established pursuant to Article VI of the
santa Monica Municipal Code on businesses within the District.
(b) In no event shall the amount of the Fee exceed the
lesser of: (1) one (1) times the annual Business License Tax
during Fiscal Year 1990-91 and thereafter; or (2) sixteen
Thousand six Hundred Twenty-Two Dollars and Ninety Three Cents
($16,622.93) j or (3) subject to request and city's approval,
Twelve Cents ($.12) per square foot per month. Both the
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$16,622.93 limitation and the Twelve Cents ($.12) per square foot
per month limitation shall be adjusted annually by increases in
the Consumer Price Index for All Urban Consumers for the Los
Angeles Long Beach Anaheim Metropolitan Area. Annual
adjustments shall be made each July 1st, based upon the increase
in the Consumer Price Index during the preceding calendar year.
The square foot maximum cap shall only be effective if a
business obtains the prior written approval of City after making
a written request to city. Such written request shall be made to
the city's Community and Economic Development Department and
shall include adequate documentation supporting the applicant
business I s qualification for such square foot maximum cap. If
such applicant business is able to demonstrate to the
satisfaction of the City'S Community and Economic Development
Department that it qualifies for such square foot limitation, a
written City approval permitting such square foot maximum cap
will be issued.
SECTION 2. A business may be entitled to apply for a
credit against the annual Fee, if such business provides an
on-site parking facility which satisfies all of the following
criteria:
(a) Such parking is located within a three hundred (300)
foot radius of the applicant business.
(b) Such parking is provided free to the general pUblic.
(c) Such parking is available on a non-preferential,
non-reserved basis to all users.
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(d) The applicant business controls the use of the entire
parking facility.
In order to qualify for the percentage credit, an applicant
business must obtain the prior written approval of the City,
after submitting a written request to City. Such written request
shall be made to the city' s community and Economic Development
Department, and shall include adequate documentation supporting
the applicant business's satisfaction of all of the
above-referenced criteria. If such applicant business is able to
demonstrate to the satisfaction of the City's Community and
Economic Development Department that it is eligible for the
percentage credit, a written City consent will be issued
permitting a percentage credit for such qualifying business.
The amount of percentage credit shall be calculated by the
ci ty' s Community and Economic Development Department, and such
determination shall be final and conclusive.
Such credit would be calculated by dividing the total
amount of applicant-provided parking which meets the above
criteria by the total amount of parking which is required
pursuant to the City's Zoning Code. For example, if the
applicant business provided twenty-five (25) on-site parking
spaces which fulfill the above criteria, and if the amount of
parking for such applicant business pursuant to the city's Zoning
Code is forty-two (42) spaces, then the total credit available
would be calculated by dividing 25 spaces (applicant provided) by
42 spaces (Zoning Code requirement): 25 divided by 42 = 59.5%
credit. Accordingly, assuming the above sample applicant
business's Fee was $5,000.00, a credit equal to $2,975.00 (59.5%
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of the Fee) would be subtracted from such Fee: $5,000.00-
$2,975.00 = $2,025.00, the Fee due after such credit adjustment.
SECTION 3. The adjusted Fee shall be collected in the same
manner and subject to the same penalties as the Business License
Tax established pursuant to Article VI of the Santa Monica
Municipal Code.
In Fiscal Year 1990-91 and thereafter, the adjusted Fee
shall be equivalent to the lesser of one (1) times the annual
Business License Tax; sixteen Thousand six Hundred Twenty-Two
Dollars and Ninety Three Cents ($16,622.93); or, subject to
request and city's approval, Twelve Cents ($.12) per square foot
per month, and shall be collected each Fiscal Year, in four equal
quarterly installments. The first installment shall become due
July 1st of each Fiscal Year, and shall become delinquent on
August 31st; the second installment shall become due on October
1st of each Fiscal Year, and shall become delinquent on November
30th; the third installment shall become due on January 1st of
each Fiscal Year, and shall become delinquent on February 28th:
and the fourth installment shall become due on April 1st of each
Fiscal Year, and shall become delinquent on May 31st.
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SECTION 4. The city Clerk shall certify to the adoption of
this Resolution, and thenceforth and thereafter the same shall be
in full force and effect.
APPROVED AS TO FORM:
(~ fv\o- ~
ROBERT M. MYERS
city Attorney
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Adopted and approved this 22nd day of May, 1990.
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I hereby certify that the foregoing Resolution No. 8026(CCS)
was duly adopted by the City council of the city of Santa Monica
at a meeting thereof held on May 22nd, 1990 by the following
Council vote:
Ayes: Councilmembers: Abdo, Finkel, Genser, Jennings,
Reed, Mayor Zane
Noes: Councilmembers: Katz
Abstain: Councilmembers: None
Absent: Councilmembers: None
ATTEST:
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------ ci ty ClArk
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BBFORE DIS~RIBUTION CHECK CONTENT OF
DISTRIBUT:ON OF RESOLUTION #?c-70
0~ /9D
{- - {--;
lYe
VOTE: Afflrmative: r:;; - I
?-r.r-
ALL FOR CITY CLERK'S ACTION
ORDINANCE #
Councll MeetJ.ng Date
Introduced:
Agenda Item #
Adopted:
ALWAYS PUBLISH ADOPTED ORDINANCES
Cross out Attorney's approval
Was it amended?
Negatlve:
AbstaJ.n:
Absent:
PROOF VOTES WITH ANOTHER PERSON BEFORE ANYTHING
DISTRIBUTION: ORIGINAL to he signed, sealed and flIed in Vault.
NEWSPAPER PUBLICATION (Date: )
Department orJ.glnatlng staff report( Laurie Lieberman)
OrdJ.nances only for Attorney ( Claudla Thompson) 2
Management Services Lynne Barrette ORDINANCES ONLY 1
Agency mentloned ln document or staff report
(certJ.fled?)
SubJect flle (agenda packet) 1
Counter flle I
Others: (Revlew for
Alrport
Audltorlum
departments who need to know).
Parklng Auth.
Personnel
BUllding Dept. Planning
CIED Pollee
FJ.nance Purchasing
General Servo Recr/Parks
Llbrary TransportatJ.on
Manager Treasurer
Flre ~ .L
SEND FOUR COPIES OF ALL ORDINANCES TO:
CODED SYSTEMS
120 Maln Street
Avon, New Jersey 07717
4
SEND FOUR COPIES OF ALL ORDINANCES TO:
4
Rebecca Garrldo
Santa Monlca MunJ.cipal Court
1725 Maln Street, Room 118
Santa Monlca, CA 90401
Total Coples
-3