Council Meeting: April 13, 1999 Santa Monica, California

TO: Mayor and City Council

FROM: City Staff

SUBJECT: Recommendation That the City Council Introduce For First Reading of an Ordinance to Modify and Amend the Main Street Business Improvement Area Assessment and Repeal Inconsistent Provisions of Ordinances Number 1303 and 1328(CCS) Which Established the Previous Rates and Methods of Collection For That Business Improvement Area.

This report recommends that the City Council introduce for first reading of the attached ordinance to modify and amend the Main Street Business Improvement Area Assessment and repeal inconsistent provisions of Ordinances Number 1303 and 1328 (CCS) which established the previous rates and methods of collection for that Business Improvement Area.

Ordinance 1606 (CCS), which authorizes the City to impose assessments on businesses within a parking and business improvement area and establishes the requirements and procedures for establishing or amending such BIAs, requires that notices be mailed and published regarding the resolution of intent and a public hearing be held. Staff has prepared and mailed notices regarding this public hearing to impacted Business License Holders within the area of the Main Street BIA and published the Resolution of Intent No. 9381 (CCS) more than ten days in advance as required by Ordinance No. 1606 (CCS).

The proposed business improvement area fees from Main Street merchants are projected to be approximately $91,500 per year annually. The current contract with the Santa Monica Chamber of Commerce to administer these funds allows for a 5% retention by the City. This amount would be approximately $4,575.00 which staff calculates would be sufficient to cover administrative costs associated with printing, postage, and billing, as this would be done concurrently with the Business License renewal. There would be no other financial/budgetary impacts.

City staff recommends that the City Council introduce for first reading of the attached ordinance to modify and amend the Main Street Business Improvement Area Assessment and repeal inconsistent provisions of Ordinance Number 1303 and 1328 (CCS) which established the previous rates and methods of collection for that Business Improvement Area.

Prepared by:

Jeff Mathieu, Director, Resource Management Department
Gwen Pentecost, Sr. Admin. Analyst, Economic Development Div.

Attachment: Ordinance

City Council Meeting 04-13-99 Santa Monica, California

ORDINANCE NUMBER ____ CCS

(City Council Series)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING AND MODIFYING THE MAIN STREET BUSINESS IMPROVEMENT AREA ASSESSMENT DISTRICT, REPEALING INCONSISTENT PROVISIONS OF ORDINANCES 1303 (CCS) and 1328 (CCS) AND LEVYING AN ASSESSMENT ON BUSINESSES WITHIN SUCH MAIN STREET BUSINESS IMPROVEMENT AREA

WHEREAS, on March 23, 1999, the City Council of the City of Santa Monica adopted Resolution Number 9381 (CCS), entitled "A Resolution of the City Council of the City of Santa Monica Declaring Its Intention to Modify and Amend the Main Street Business Improvement Area Assessment District and Repeal Resolution Number 9018 (CCS)", which set a public hearing for April 13, 1999 at 7:00 p.m. in the temporary City Council Chambers located at the Main Library Auditorium at 1334 Sixth Street, Santa Monica, California for purposes of considering the modification and amendment of such Main Street Business Improvement Area; and

WHEREAS, all required public notices having been given, the public hearing was held on April 13, 1999 at the scheduled time and location, at which time the City Council heard all protests and received evidence for or against the proposed modification and amendment of the Main Street Business Improvement Area and the levy of an assessment on businesses within the Main Street Business Improvement Area; and

WHEREAS, the City Council, after all protests, ruled that there was not a majority protest which would terminate the proceedings, and thereafter made a determination to modify and amend the Main Street Business Improvement Area;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS:

SECTION 1. Boundaries of Main Street Business Improvement Area.

SECTION 2. Businesses Subject to Assessment.

The businesses located within the boundaries of the Main Street BIA shall be subject to the provisions of the assessment set forth herein.

 

SECTION 3. Amount of Assessment.

An assessment will be levied against all person or entities operating a business establishment within the Main Street BIA. For fees due July 1, 1999 and thereafter, unless amended by the City Council, the Main Street BIA assessment will be a fee equivalent to the following:

* Business License Tax rates are set forth in Article 6 of the Santa Monica Municipal Code

SECTION 4. Exemption for Businesses Holding Home Occupation Permits.

The assessment shall not apply to any person operating a business from his or her

principal place of residence within the Main Street BIA and for which a homeoccupationn permit has been issued in accordance with the provisions of Article IX of the Santa Monica Municipal Code.

SECTION 5. Levy of Assessment to Fund Improvements and Activities.

The improvements and activities to be provided in the Main Street BIA will be funded by the levy of assessments described in Section 3 above. The revenues from the levy of such assessments shall be used exclusively within the Main Street BIA described herein and shall not be used to provide improvements or activities outside of such BIA.

SECTION 6. Finding of Benefit.

The businesses and property within the Main Street BIA described herein will be benefited by the improvements and activities funded by the assessments proposed to be levied.

SECTION 7. Use of Assessment Revenue.

The assessments levied within the Main Street BIA, less 5% retained by the City for the costs of collection and administration, shall be used for any of the following purposes:

1) General promotion and marketing of commercial trade activities within the Business Improvement Area, promotion of public events and decoration of any public place in the area.

2) Supplemental operation and maintenance activities within the Main Street BIA as required.

3) Any other purposes allowable under Ordinance 1606 (CCS), or any amendment to Ordinance 1606 (CCS).

SECTION 8. Time and Collection of Assessments.

The assessments levied hereunder shall be payable concurrently and collected at the same time and in the same manner as the general business license tax. For failure to pay said assessments on the due date thereof, penalties shall be exacted as set forth in Section 6.04.160 of the Santa Monica Municipal Code. All provisions set forth in the Santa Monica Municipal Code regarding business classification, business audit, reporting period, penalties for delinquent payment and similar issues, shall be applicable to the assessments levied hereunder.

SECTION 9. Administration.

The proceeds of the assessments collected hereunder shall be administered as provided by a contract between the City and an organization that is approved by the City.

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SECTION 10. Repeal of Inconsistencies; Modification and Amendment of Main Street BIA.

The provisions set forth in Ordinance Number 1303 (CCS), as amended by Ordinance Number 1328 (CCS), which established the original Main Street BIA are hereby repealed to the extent they are inconsistent with the provisions set forth in this Ordinance. The modified and amended Main Street BIA shall be as described herein and subject to the procedures of Ordinance No. 1606.

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 effect the provisions of this Ordinance.

SECTION 11. Partial Invalidity.

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 adopted 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 12. Collection of Assessments Levied Prior to Adoption of This Ordinance.

Notwithstanding the repeal of provisions of Ordinances 1303 and 1328 (CCS), and the modification and amendment of the Main Street BIA, any assessments which were levied under such prior ordinances and remain unpaid by any business shall continue to be due and owing by such businesses. The City may take all appropriate actions to collect such past due assessments, and shall have the option of collecting them at the time and in the manner as provided in this Ordinance.

SECTION 13. Effective Date.

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.

APPROVED AS TO FORM:

MARSHA JONES MOUTRIE