ITEM 6-B

City Council Meeting 7-10-90             Santa Monica, California

                          STAFF REPORT

TO:         Mayor and City Council

FROM:       City Attorney

SUBJECT:    Recommendation to Adopt an Ordinance Amending
            Ordinance Number 960 (CCS) Pertaining to
            the Additional Business License Tax Levied in
            the Montana Avenue Business Improvement
            Assessment District

      At  its  meeting  on  June  26,  1990,  the  City   Council
introduced  for  first  reading  an  ordinance amending Ordinance
Number 960 (CCS) to change the additional  business  license  tax
levied  in the Montana Avenue Business Improvement District.  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


                      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 District"); 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 "said  law"),
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

      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   "business
            license  fee"),  an  additional  business
            license  tax  is  hereby   imposed   upon
            business    license   holders   occupying
            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.

      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 unconstitutional 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:

____________________
ROBERT M. MYERS
City Attorney