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HomeMy WebLinkAboutCC ORD 2001-2191 Establishes Mile of Cars Improvement District (Special)ORDINANCE NO. 2001 - 2191 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY ESTABLISHING THE MILE OF CARS BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND IMPROVING THE AREA WHEREAS, under and pursuant to the provisions of the Parking and Business Improvement Area of 1989, codified as California Streets and Highways Code Section 36500, et seq, this Council on October 16, 2001, adopted Resolution No. 2001-157, declaring an intention to form a parking and business improvement area to be known as the "Mile of Cars Business Improvement District" providing for the levy of an assessment and charge to be imposed herein, fixing the time and place for hearing and giving notice thereof; and WHEREAS, Resolution No. 2001-157 was duly published, and copies thereof were mailed as provided by the Law; and WHEREAS, as specified in Resolution No. 2001-157, on November 6, 2001, both a public meeting and a public hearing concerning the formation of the area were held before this Council in the Council Chambers; and WHEREAS, at the hearings, all protests, both written and oral, made or filed were considered and duly overruled and denied and this Council determined that there was no majority protest within the meaning of Section 36523 of the Law. NOW, THEREFORE, BE IT ORDAINED, by the Council of The City of National City, as follows: Section 1. Pursuant to California Streets and Highway Code Section 36500, et seq, (hereafter referred to as "the Law"), a parking and business improvement area is hereby established, to be known as the "Mile of Cars Association", herein called "District." The membership to be included in the District includes the Mile of Cars car dealers who are licensed or franchised by domestic and/or foreign automotive manufacturers to sell new vehicles, hereafter referred to as "new car dealers", that are located within the following general boundaries: Highland Avenue to the East; West 35th Street to the South; McKinley Avenue to the West; 18th Street to the North; and all of National City Boulevard within the City limits; and as more specifically described at the following streets and addresses: Ordinance No. 2001 - 2191 Mile of Cars Business Improvement District Page Two STREET National City Boulevard McKinley Avenue Wilson Avenue Roosevelt Avenue Harding Avenue Hoover Avenue Transportation Avenue Southport Way A Avenue B Avenue C Avenue D Avenue E Avenue F Avenue G Avenue Highland Avenue W 35d' Street W 33'd Street E 30th Street W 30th Street E 28th Street W 28th Street E 27th Street E 26th Street W 26"` Street E 25th Street W 25th Street E 24th Street W 24th Street W 22nd Street E 20th Street E 18th Street W 18d' Street ADDRESS SERIES All within the City boundaries (1 - 3500) 1800 - 3400 1800 - 2400 1800 - 2200 1800 - 3000 1800 - 3300 2400 - 3000 2400 - 2900 1800 - 3000 1800 - 3000 1800 - 3000 1800 - 3000 1800 3000 1800 - 3000 1800 - 3000 1800 - 3499 001 - 500 001 - 500 001 - 500 001 - 500 001-500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 001 - 500 The map depicting the District is attached hereto as Exhibit "A" and incorporated herein by reference. Ordinance No. 2001 - 2191 Mile of Cars Business Improvement District Page Three Section 2. The purpose of forming the District as a parking and business improvement area under the Business and Improvement Area Law is to provide revenue to defray the costs of services and programs that will benefit new car dealers in the District, including any of the following: a. Acquisition, construction, or maintenance of parking facilities for the benefit of the area; b. Decoration of any public place in the area; c. Promotion of public events or attraction of customers to the area; d. Furnishing of music in any public place in the area; e. The general promotion of business activities in the area; f. Participation in economic development strategies for the area; The specific services and programs to be provided and funded are listed in Exhibit "B", which is attached hereto and by this reference made a part hereof. The services and programs listed thereon are the uses to which the revenues generated by the assessments to be levied will be put within the District. Section 3. All new car dealers operating in the above -described District will be assessed an annual assessment, collected monthly through the designated fiscal agent, for their respective share of the costs of the aforementioned services and programs according to a formula set forth in Exhibit "C" and summarized as follows: ASSESSMENT METHODOLOGY: The assessment methodology, as approved and recommended to the City by the Mile of Cars Association Board of Directors on June 12, 2001, is based upon a minimum annual first year revenue flow in calendar year 2002 of $1,100,000.00 dollars (one million one hundred thousand dollars). The methodology will be based upon the reporting of quarterly gross sales tax receipts to the State of California, which will be obtained by the City of National City and disclosed to the City's fiscal agent. Based upon the submission of the September 2001, (third quarter) quarterly tax receipts report by each dealer to the fiscal agent, the fiscal agent will issue a monthly bill, commencing December 2001, for the projected monthly BID assessment to each and every new car dealer. The monthly bills will be due 30 days from the day of receipt from the new car dealers, with the first assessments due January 15, 2002. The fiscal agent shall bill each and every new car dealer by applying the BID assessment factor to the average monthly gross sales taxes, for the third quarter, 2001. Ordinance No. 2001 - 2 19 1 Mile of Cars Business Improvement District Page Four The initial factor to be used to generate the $1,100,000.00 in annual BID revenues shall be a factor of .0027253. This factor, when applied to the annual sales tax receipts for every new car dealer, ($403,630,839.00, calendar year 2000) will generate the desired sum of BID revenues to fund the marketing and promotional activities of the benefiting businesses. The fiscal agent shall be authorized as a contractual agent of the City to bill each and every new car dealer within the proposed BID boundaries on a monthly basis. Any business that fails to remit its BID fees to the fiscal agent within 30 days of the due date, shall be reported to the City or its designate, the Community Development Commission of the City, for collection purposes. The City or designate shall begin collection procedures, using its best efforts, including penalties and interest, for any and all outstanding monthly BID bills. The annual assessment shall be prorated and collected as a monthly charge and shall be levied and collected by the designated fiscal agent of the City or its designate, the Community Development Commission of the City of National City. The fiscal agent shall estimate monthly assessments based upon the third quarter 2001, gross sales tax receipts of each and every car dealer. Monthly BID assessments shall commence in early December 2001 and be due on January 15, 2002. Thereafter, the fiscal agent shall issue monthly billings, and make quarterly adjustments between the estimated amount due, based upon the base period third quarter 2001, and the actual assessments due, based upon the assessment factor and actual sales commencing January 1, 2002. The City shall be the collection agent should any new car dealers refuse or delay payment into the BID. The assessments shall be collected and enforced in the same manner and with the same penalties and interest as in the case of the business tax certificates. For those businesses taxed, the City Treasurer shall determine the assessment to be levied upon issuance of the City business tax certificate. The City Treasurer and the Finance Director are each authorized to revoke the business tax license of any member of the District who unjustifiably refuses to pay the assessment or monthly installment, when due. Section 4. Effective January 1, 2002, the District, through the City or its designate, shall also be responsible for the administration of the property owner -funded Landscaping and Lighting District approved in 1996. This district generates $100,000 in revenue per year and these funds can only be used to maintain lighting and landscaping services. A portion of those funds may be used to offset administrative costs related to the overall management of both the BID and the landscape maintenance district. Ordinance No. 2001 - 2191 Mile of Cars Business Improvement District Page Five Section 5. The Council hereby fmds and determines that the public convenience and necessity require the establishment of the areas described and that all of the new car dealer businesses lying within the area will be benefited by the expenditure of the funds raised by the assessments or charges proposed to be levied. Section 6. That all protests, both written and oral, are overruled and denied and the Council finds that there is not a majority protest within the meaning of Section 36523 of the Law. Section 7. That all of the new car dealers in the area established by this ordinance shall be subject to any amendments to the provisions of the parking and business improvement area law of 1989, codified as California Streets and Highway Code Section 36500, et seq. Section 8. That this Council shall review all of the assessments imposed pursuant to this ordinance annually, and shall retain responsibility for annual levy of assessments, notwithstanding any delegation of responsibility pursuant to this ordinance. Section 9. That any new car dealer within this district who unjustifiably fails or refuses to pay the annual assessment at the time or times specified shall be subject to the revocation of its business tax license by the City Treasurer or the Finance Director, upon the recommendation of the administrator or designate. Section 10. A. That a Mile of Cars Advisory Board shall be appointed by the Mayor, subject to confirmation by the City Council, the membership of which shall consist of five representatives from the new car dealers within the District that pay the assessments. B. Nominations for membership to the Advisory Board shall be made to the Mayor by the Mile of Cars Association. Upon initial appointment, the term of office of three (3) of the members will be for a term of three years, and two (2) members for a term of two (2) years. Thereafter, the term of office shall be for a period of two years. The Executive Director of the Community Development Commission of the City of National City and the City Manager, or their designates, shall be ex-officio members of the Advisory Board. C. The Advisory Board shall make such recommendations in accordance with Section 36530 of the Streets and Highways Code as shall be appropriate to the fiscal administration of the District. The Advisory Board shall be subject to the provisions of the Ralph M. Brown Act when conducting its meetings, which shall be held at least once a year. Ordinance No. 2001 — 2191 Mile of Cars Business Improvement District Page Six Section 11. That the City Council, pursuant to the request of the Community Development Commission, hereby delegates to the Community Development Commission of National City the responsibility for the administration and operation of the District. This delegation of responsibility shall be effective upon the filing of a certified copy of a resolution of acceptance of the delegation by the Community Development Commission with,the City Clerk. The City shall retain responsibility for the levy of the annual assessments as required by law. The City or its designate may enter into such contracts for the fiscal administration and management of the District as may be necessary and appropriate. The City or its designate may contract with the Mile of Cars Association to carry out the management and fiscal administration of the District. Section 12. That the City Clerk shall transmit a certified copy of this ordinance upon its adoption to the Chairman of the Community Development Commission of National City. Section 13. That this ordinance shall take effect and be in force 30 days after its adoption, and no business tax license for new car dealer commercial activities inconsistent with the provisions of this ordinance shall be issued unless application therefore was made prior to the date of adoption of this ordinance. PASSED and ADOPTED this 20TH day of NOVEMBER , 2001. ,Cep.. George H. ters Mayor ATTEST: Mic . -1 Dalla ' ity Clerk APPROVED AS TO FORM: George H. Eiser, III City Attorney EXHIBIT "A" MAP OF THE DISTRICT EXfIIBIT "B" FIRST YEAR BUDGET: The first year budget, (based upon applying proposed assessment methodology to the calendar year 2000 gross sales receipts reported for all new car dealers, is expected to total approximately $1,100,000.00. Any variance in this amount, anticipated to be collected in calendar year 2002, would be based upon fluctuation in gross sales tax receipts generated from new car dealers in calendar year 2001 and 2002. The budget anticipated to fund special benefits for the 2002 calendar years should be expended as follows, subject to ongoing review by the designated Management representatives: INCOME: Assessments Interest income Total receipts EXPENSE: $ 1,100,000.00 $ 1,000.00 $ 1,101,000.00 Advertising $ 891,250.00 Bank Charges $ 150.00 Depreciation $ 800.00 Dues and subscriptions $ 150.00 Insurance $ 2,600.00 Legal and professional $ 14,000.00 Entertainment (Christmas party) $ 1,200.00 Miscellaneous $ 1,000.00 Office expense $ 500.00 Outside service - Bob Shumake $ 36,000.00 Outside services - New City America $ 25,000.00 Professional - Silberman and Sloan, LLP $ 13,850.00 Professional - legal $ 5,000.00 Repairs and maintenance - signs $ 12,000.00 Sign purchases $ 41,600.00 Taxes and licenses $ 900.00 Utilities $ 45,000.00 Reserve $ 10,000.00 Total Expenditures $ 1,101,000.00 EXHIBIT "C" ASSESSMENT METHODOLOGY: The assessment methodology, as approved and recommended to the City by the Mile of Cars Association Board of Directors on June 12, 2001, is based upon a minimum annual first year revenue flow in calendar year 2002 of $1,100,000.00 dollars (one million one hundred thousand dollars). The methodology will be based upon the reporting of quarterly gross sales tax receipts to the State of California, which will be obtained by the City of National City and disclosed to the City's designated fiscal agent. Based upon the submission of the September 2001, (third quarter) quarterly tax receipts report by each dealer to the fiscal agent. The fiscal agent will issue a monthly bill, commencing December 2001, for the projected monthly BID assessment to each and every new car dealer. The monthly bills will be due 30 days from the day of receipt from the new car dealers, with the first assessments due January 15, 2002. The fiscal agent shall bill each and every new car dealer by applying the BID assessment factor to the average monthly gross sales taxes, for the third quarter, 2001. The initial factor to be used to generate the $1,100,000.00 in annual BID revenues shall be a factor of .0027253. This factor, when applied to the annual sales tax receipts for every new car dealer, ($403,630,839.00, calendar year 2000) will generate the desired sum of BID revenues to fund the marketing and promotional activities of the benefiting businesses. The fiscal agent shall be authorized, as a contractual agent of the City, to bill each and every new car dealer within the proposed BID boundaries on a monthly basis. Any business that fails to remit their BID fees to the fiscal agent within 30 days of the due date shall be reported to the Community Development Commission of the City for collection purposes. The City shall begin collection procedures, using its best efforts, including penalties and interest, for any and all outstanding monthly BID bills. Refusal to pay into the district shall also be considered a violation of a City ordinance, thereby subjecting the offender to the revocation of its business tax license. Once collected, the fiscal agent shall transfer the BID assessments to the general checking account or other designated accounts of the BID Management Corporation. The fiscal agent shall maintain an ongoing business relationship with the City, as well as the BID management corporation, to ensure the smooth flow of revenue in both the collection process as well as disbursement process. At the end of each quarter, commencing the first quarter of 2002, the fiscal agent shall reconcile the amount of BID assessments paid, (January, February and March 2002), as determined from the anticipated and billed BID assessments, with the actual reported sales tax receipts. The fiscal agent shall apply the BID assessment factor to the gross sales tax receipts Mile of Cars Business Improvement District Exhibit "C" Page Two reported by each new car dealer based upon their reported quarterly tax reports to the State of California. The actual quarterly numbers, commencing the first quarter of 2002, will be provided by the Community Development Commission of the City of National City, as provided by the State of California. Any differences in the amount of BID monthly assessments previously paid by each new car dealer, and the amount actually owed, whether debit or credit, shall be reconciled by the fiscal agent in the billing immediately following the presentation of actual gross sales tax receipt reports. The lead agency for the City shall be the Community Development Commission of National City. ANNUAL INCREASE: The Mile of Cars Association Board of Directors, or its successor, has authorized that a Consumer Price Index annual escalator be included in the BID assessment methodology. An amount not to exceed five per cent per year, based upon the assessment methodology factor, may be instituted by direction of the Board of Directors of the Management Corporation. Any recommended increases shall be made in writing by November of each year to the Community Development Commission of National City. COLLECTION SCHEDULE: The fiscal agent shall initiate billing for calendar year 2002 in early December 2001. Billings shall be based upon actual sales tax revenues reported, multiplied by the assessment methodology factor, from the September 2001 quarterly reporting sales tax reporting documents. Payments will be due and payable by January 15, 2002. Passed and adopted by the Council of the City of National City, California, on November 20, 2001, by the following vote, to -wit: Ayes: Councilmembers Beauchamp, Inzunza, Morrison, Zarate. Waters. Nays: None. Absent: None. Abstain: None. AUTHENTICATED BY: GEORGE H. WATERS Mayor of the City of National City, California City jj of National City, California i lerk of the Ci By: Deputy I HEREBY CERTIFY that the foregoing ordinance was not finally adopted until seven calendar days had elapsed between the day of its introduction and the day of its final passage, to wit, on November 6, 2001, and on November 20, 2001. I FURTHER CERTIFY THAT said ordinance was read in full prior to its final passage or that the reading of said ordinance in full was dispensed with by a vote of not less than a majority of the members elected to the Council and that there was available for the consideration of each member of the Council and the public prior to the day of its passage a written or printed copy of said ordinance. I FURTHER CERTIFY that the above and foregoing is a full, true and correct copy of ORDINANCE NO. 2001-2191 of the City Council of the City of National City, passed and adopted by the Council of said City on November 20, 2001. City Clerk of the City of National City, California By: Deputy