HomeMy WebLinkAboutReso 2009-010RESOLUTION N0.2009-010
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA DECLARING ITS INTENTION TO
ESTABLISH THE CHULA VISTA AUTO PARK BUSINESS
IMPROVEMENT DISTRICT (BID) PURSUANT TO THE
PARKING AND BUSINESS IMPROVEMENT LAW OF 1989
WHEREAS, the Pazking and Business Improvement Area Law of 1989 (Streets and
Highways Code Section 36500 et seq., hereafter referred to as the "Law") is intended to aid in
the promotion of physical and other improvements and activities within local business districts;
and
WHEREAS, the City Council of the City of Chula Vista desires to form a pazking and
business improvement azea, to be known as the "Chula Vista Auto Pazk Business Improvement
District" (the "District") pursuant to the Law, to promote the proposed azea as a premier
employment and commercial azea, and specifically to aid in the promotion of local transportation
sales businesses located in the proposed area; and
WHEREAS, the transportation sales businesses in the proposed azea have been given an
opportunity to review the proposed Management District Plan (the "Plan," which is comprised of
Exhibits A, B, C, D and E, attached to this Resolution) that describe the activities and
improvements, the proposed azea, and the amounts and methodology for levying assessments
upon the businesses located within the area, and have indicated their support for the formation of
this District by submitting petitions supporting the District formation; and
WHEREAS, after a preliminary review for compliance with the California
Environmental Quality Act (CEQA) staff has determined that the activity is not a "Project" as
defined under Section 15378 of the State CEQA Guidelines because the action only involves
fiscal issues which do not involve any commitment to any specific project which may result in a
potentially signiScant physical- impact on the environment; therefore, pursuant to Section
15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista
as follows:
1. The City Council declares its intention to form a pazking and business improvement area
to be known as the "Chula Vista Auto Park Business Improvement District" (the "District")
pursuant to the Law.
2. The azea to be included in the District includes those businesses engaged in the sale of
new vehicles for transportation (including but not limited to automobiles, trucks and motor
homes); collectively hereafter referred to as "transportation sales businesses" and identified as
such by designations within the North American Industrial Code bearing those code numbers
identified in Exhibit A, attached hereto and incorporated herein by this reference.
Resolution No. 2009-010
Page 2
The businesses aze located within the azea of Chula Vista: (a) fronting along that street known as
Main Street/Auto Pazk Drive, within the boundaries of Interstate 805 on the west and Nirvana
Avenue on the east; and (b) fronting on the side streets off Auto Pazk Drive specifically
identified in the Plan. The precise business azeas and boundazies for the District aze described in
Exhibit B, attached hereto and incorporated herein by this reference.
3. The purpose of forming the District as a pazking and business improvement azea is to
provide revenues (District revenues) to cover the cost of services and programs that will benefit
the assessed businesses within the azea. The services and programs to be provided and paid for
by the District revenues aze described in Exhibit C, attached hereto and incorporated herein by
this reference.
4. A11 transportation sales businesses will be assessed, on aper-business license basis, a
shaze of the cost of the services and programs, according to the following criteria: (See Exhibit
D, attached hereto and incorporated herein by this reference).
Initial Six-Month Period
During the first six months after the effective date of the District, each transportation sales
business will be assessed the sum of $3,000.00 per month.
Remaining Term(s) of District
Following the initial six-month period, during the remaining term(s) of the District, including
any renewals of the District pursuant to Law, each transportation sales business will be assessed
according to the following measures:
(a) $3,000.00 per month, if the annualized taxable sales attributable to the business
license aze equal to or less than $24,000,000.00;
(b) A sum equal to .0015% of the average quarterly taxable sales, if the annualized
taxable sales attributable to the business license aze equal to or more than $24,000,001.00;
(c) Notwithstanding the formula set forth in (b), above, the maximum assessment shall be
$6,000.00 per month, regazdless of the actual annualized taxable sales attributable to the business
license.
The total assessment collected from any new transportation sales business under the
provisions of the resolution shall be at least $36,000.00 per year, but shall not exceed $72,000.00
per yeaz.
Resolution No. 2009-010
Page 3
New Businesses
While the Law provides for an option to exempt new businesses from the payment of the
assessment for the first year of operation, businesses locating within the District after the date on
which the District is fonned (new business) shall not be exempt from the payment of the
assessment, for a period of one yeaz from the date on which the new business commences
operating in the District.
5. The assessment to be established shall be a monthly chazge, collected by a third party
consultant acceptable to the City of Chula Vista and the BID boazd of directors. The consultant
shall collect the minimum monthly chazge, then reconcile each transportation sales business'
account on a quarterly basis and charge such additional amounts to each transportation sales
business, as called for under the Plan and this resolution. Additional assessment amounts shall
be paid within thirty (30) calendar days of receiving notice from the Consultant, advising the
transportation sales business of the additional amounts required.
6. Pursuant to the ordinance to be adopted, establishing the District, the failure to timely pay
any assessment shall be considered a breach of the terms upon which the transportation sales
business holds its business license, and will result in the City's revocation of the transportation
sales business' license, or refusal to renew it upon the annual expiration of the license.
7. The City Council finds and determines that the public convenience and necessity require
the establishment of the azea herein described, and that all of the covered transportation sales
businesses within the azea will be specially benefitted by the expenditure of the funds raised by
the assessments proposed to be levied.
8. Pursuant to California Government Code section 54954.6, notice is given that on
February 10, 2009, at 6:00 p.m., in the City Council chambers of the City of Chula Vista, located
at 276 Fourth Avenue, Chula Vista, California, the City Council shall conduct a public hearing
where any and all persons having any desire to be heazd on this matter, may appeaz and state
their views regazding the establishment of the above-described District, including the extent of
the District azea, the method of assessment, or the proposed services and programs.
9. Pursuant to California Streets & Highways Code section 36525, valid written protests
from business owners who would pay fifty percent (50%) or more of the assessments proposed
to be levied will prevent further action from being taken to form the District, for a period of one
(1) year from the date the City Council finds a majority protest exists.
10. Pursuant to California Streets & Highways Code section 36523, the City Council hereby
directs the City Clerk to give proper notice of the above-described heazing, by both publication
and mailing in accordance with the Law.
Approved as to form by
'~ ~-
Bart C. Miesfeld
City Attorney /
Presented by
Resolution No. 2009-010
Page 4
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 20th day of January, 2009 by the following vote:
AYES: Councilmembers: Bensoussan, Castaneda, Ramirez, and Cox
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
Cheryl Cox, M or
ATTEST:
0
Donna R. Norris, C C, City Clerk
STATE OF CALIFORNIA
COUNTY OF SAN DIEGO
CITY OF CHULA VISTA
I, Donna R. Norris, City Clerk of Chula Vista, California, do hereby certify the foregoing
Resolution No. 2009-010 was duly passed, approved, and adopted by the City Council at a
regulaz meeting of the Chula Vista City council held on the 20a' day of January 2009.
Executed this 20s' day of January 2009.
llI /vDi~S.co
Donna R. No ris, CMC, City Clerk
Resolution No. 2009-010
Page 5
EXHIBIT A
NORTH AMERICAN INDUSTRIAL CODES (N.A.LC). CODES FOR
AFFECTED BUSINESSES IN THE CHULA VISTA
AUTO PARK DRIVE BUSINESS IMPROVEMENT DISTRICT
Those NAIC Code numbers will include:
T e o business NAIC Code - 2007
Automobile Dealers 4411
New Car Dealers 44111
New Car Dealers 441110
Other New Motor Vehicle
Dealers 4412
New Recreational Vehicle
Dealers 44121
New Recreational Vehicle
Dealers 441210
All other New Motor
Vehicle dealers 441229
Each new transportation sales business license holder within the confines of one
common lot is considered one separate entity for assessment purposes, including
those situations when a single one person or corporation owns multiple new
vehicle dealerships.
Resolution No. 2009-010
Page 6
EXHIBIT B
BOUNDARIES AND MAP OF THE CHULA VISTA
AUTO PARK DRIVE BUSINESS IMPROVEMENT DISTRICT
Boundaries: Along Main StreetlAuto Park Drive, in general, from:
- Highway 805 on the west;
- Nirvana Avenue on the east including all commercially zoned parcels in
between Nirvana and Highway 805;
- All of the side streets off of Auto Park Drive that can legally accommodate
transportation sales businesses;
Street and Address series for boundaries of new district:
Street Address Series
Auto Park Drive 505 - 4555
Auto Park Place 1860 - 1890
Brand ine Avenue 1669 - 1690
Main Court 1810 - 1820
Any and all new transportation sales related business license holders falling within
these boundaries will automatically be included in this assessment district. There
are currently five dealerships that would be assessed using the above criteria.
Resolution No. 2009-010
Page 7
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Resolution No. 2009-010
Page 8
EXHIBIT C
SERVICES AND PROGRAMS TO BE FUNDED BY THE BUSINESSES IN THE
CHULA VISTA AUTO PARK DRIVE BUSINESS IMPROVEMENT DISTRICT
Purpose_ofthe Chula Vista Auto Park Business Improvement District:
The Chula Vista Auto Park BID will serve as a funding mechanism for some or all
of the following special services to market and promote Auto Park Drive new
transportation related businesses;
- the construction and maintenance of the new vehicle dealers freeway sign,
which may be constructed by the City of Chula Vista, will be included as a
service or program funded by the proposed BID. The BID new vehicle
dealers within the BID will participate in the design operations and
maintenance of the new freeway sign;
- pay for marketing and advertising to promote the street as a destination
point;
- pay for median maintenance along Auto Park Drive within the boundaries of
the district;
- employee parking shuttle,
- banner program for street to promote district;
- organizational operations and staff;
- day-to-day administration of and staff for the District
Resolution No. 2009-010
Page 9
EXHIBIT D -ASSESSMENT FORMULA, MINIMUM AND MAXIMUM
Assessments raised through three tiered system: Mandatory assessments/fees
raised through levies on transportation related sales businesses within a defined
geographical area (Auto Park Drive), as follows:
a. Base amount: In the first six months of adoption of the ordinance,
there will be a mandatory minimum payment from each transportation
sales business in the amount of $3,000 per month per business. Car
dealers/owners with separate brands pay on the basis of each business
license received from the City for first six months of assessment
district. Therefore, during the first six months of the districts'
formation, the monthly budget will be $I5, 000 per month.
b. After six months of adoption of the district, the three tiered system
with minimums and maximums is applied.
c. Tiered system is based upon the fact that all dealers, regardless of type
and style of vehicle, pay a base assessment of $3,000 per month.
1. Any sales above $ 24,000,001 in annualized sales, after the first six
months of the district, will pay at a rate of .0015% of the average
quarterly sales. ($ 24 million in sales per year times .0015 =
$36,000 per year).
2. Maximum amount: The maximum amount any dealer can pay is
$6,000 per month -therefore annualized sales above $48,000,001
per year are capped at $6,000 per month.
Resolution No. 2009-010
Page 10
Sample Assessment Methodology Based Upon Existing
Five Transportation Dealers -March 2008
Annual Taxable Sales
(1 % er dealer Factor Annual Assessment Monthly Charge
Divided b 12
$ 10,000,000 .0015 $ 36,000.00
Minimum $ 3,000.00
$ 20,000,000 .0015 $ 36,000.0
Minimum $ 3,000.00
$ 24,000,000 .0015 $ 36,000.00
Minimum $ 3,000.00
$ 30,000,000 .0015 $ 45,000.00 $3,750.00
$ 35,000,000 .0015 $ 52,500.00 $ 4,375.00
$ 40,000,000 .0015 $ 60,000.00 $ 5,000.00
$ 45,000,000 .0015 $ 67,500.00 $ 5,625.00
$ 48,000,000 .0015 $ 72,000.00 $ 6,000.00
$ 52,000,000 .0015 $ 72,000.00 $ 6,000.00
$ 60,000,000 .0015 $ 72,000.00 $ 6,000.00
Collection: Collection will be done on a monthly basis, by third party
acceptable to the City of Chula Vista and the BID board of directors.
Collection frequency: Assessments are to be collected on a monthly basis from
contribution by each transportation business sales business license holder
according to the ordinance. These sales tax figures will be reconciled, once
sales taxes for a given quarter have been revealed by the state to third party
agent of the City of Chula Vista.
Resolution No. 2009-010
Page 11
EXHIBIT E -ROSTER OF THE CHULA VISTA AUTO PARK BID BOARD OF
DIRECTORS
NAME
BUSINESS
DOUG FULLER FULLER FORD
DOUG FULLER FULLER HONDA
TONY MCCUNE MCCUNE CHRYSLER, JEEP, DODGE
ED WESCHE PEOPLE'S CHEVROLET
WAYNE MEYER CHULA VISTA TOYOTA