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Home My WebLink About2009/02/10 Item 7CITY COUNCIL 4 STATEMENT ~~ CITY OF CHUTAVISTA FEBRUARY 10, 2009, Item ITEM TITLE: ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.05 TO THE CHULA VISTA MUNICIPAL CODE, ESTABLISHING THE CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND PROMOTING THE AREA SUBMITTED BY: DEPUTY CITY MANAGER/DEVELOPMENT SERVICES DIRECTOR REVIEWED BY: CITY MANAGE 4/STHS VOTE: YES ~ NO SUMMARY On Januazy 20, 2009, the Chula Vista City Council adopted Resolution 2009-010, declazing their intention to establish the Chula Vista Auto Pazk Business Improvement District. The formation of the district will provide aself-funding mechanism to allow for the promotion and mazketing of auto dealers within the Chula Vista Auto Pazk. ENVIRONMENTAL REVIEW The Environmental Review Coordinator has reviewed the proposed activity for compliance with the California Environmental Quality Act (CEQA) and has determined that the activity is not a "Project" as defined under Section 15378 of the State CEQA Guidelines; therefore, pursuant to Section 15060 (c)(3) of the State CEQA Guidelines the activity is not subject to CEQA. Thus, no environmental review is necessary. RECOMMENDATION Council adopt the ordinance. BOARDS/COMMISSION RECOMMENDATION Not applicable. DISCUSSION City staff has been working for several months with the business owners in the Chula Vista Auto Pazk on the formation of a Business Improvement District (BID). BIDS represent an innovative approach to business promotion and service delivery. BIDS have traditionally been established by groups of local businesses and property owners to improve specific business azeas through beautification efforts, increased maintenance, local promotion, special events, and other activities selected by the local BID board. Funding is derived from voluntary assessments of the businesses within the boundary of 7-1 FEBRUARY 10, 2009, Item Page 2 of 3 the BID. The ultimate goal of all BID activities is to attract customers, clients, and shoppers, as well as businesses, to the district. The proposed district would require that all new and used car dealerships pay an assessment based upon a formula that utilizes their gross taxable sales. The formula would assess each auto dealer a minimum of $3,000 per month and a maximum of $6,000 per month. The money would be paid into a fund that could be used to pay for marketing and advertising to promote the Auto Park as a destination point, a banner program, the maintenance and operation of a potential Auto Pazk directional sign, an employee parking shuttle, and day-to-day administration and staff for the district. On January 20, 2009, the City Council adopted a resolution of intention for the establishment of the District. The next step in the process is the adoption of an ordinance to formally establish the district and authorize the levying of the assessment. The public heazing for the ordinance adoption allows the City Council to heaz and consider all protests against the establishment of the azea, the extent of the area, or the furnishing of specified types of improvements or activities within the azea. A protest may be made orally or in writing by any interested person. If written protests aze received from the owners of businesses in the proposed area which will pay 50 percent or more of the assessments proposed to be levied and protests aze not withdrawn to a level below 50 percent, no further proceedings to create the District or to levy the proposed assessment shall be taken for a period of one yeaz. If the majority protest is only against a specific type or types of improvement or activity within the azea, those types of improvements or activities shall be eliminated. At the conclusion of the public hearing to establish the azea, the City Council may adopt or modify the proposed assessment or types of improvements and activities to be funded with the revenues from the assessments. The Council may also make changes to the boundazies of the proposed parking and business improvement azea that will exclude territory which will not benefit from the proposed improvements or activities. The City Council shall not change the boundaries of the area to include any territory that will not, in its judgment, benefit by the improvement or activity. Any addition of temtory to the proposed boundaries of the azea may be made only upon notice to the owners of the businesses proposed to be added to the azea. To date, staff has received two protests requesting modifications to the proposed Business Improvement District. First, the owner of property located at 4619 Main Street has stated that their property does not receive any benefit from its inclusion in the District. Therefore, they have requested that their property not be included within the BID boundary. The second protest was regazding the list of the types of businesses that will be subject to the annual assessment. The business owner requested the list of affected businesses be revised to more specifically define the subject businesses. Staff concurs with both recommendations. The property located at 4619 Main Street has been excluded from the boundaries of the proposed district as shown on Exhibit A of the attached Ordinance and additional specification of subjected businesses has been included in Section 5.05.070 of the ordinance. 7-2 FEBRUARY 10, 2009, Item_~ Page 3 of 3 DECISION MAKER CONFLICT Staff has reviewed the property holdings of the City Council and has found no property holdings within 500 feet of the boundaries of the property which is the subject of this action. FISCAL IMPACT There will be no impact to the City's General Fund as a result of this action. T'he City's future role in the BID will be to review and approve both the annual budget and annual financial report. All the costs of the operation of the district will be paid by the auto dealers. Prepared by: Craig Ruiz, Principal Economic Development Specialist, Office of Economic Development I:Wttorney\Michael5h\Amv Park Sign\PBID\BBJ-AgSt-2.10.09-FMAL.dvv 7-3 ~~5~ ~~ C~olc~c~ l !~/1f~. 2 -~~-~ ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.05 TO THE CHULA VISTA MUNICIPAL CODE, ESTABLISHING THE CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND PROMOTING THE AREA WHEREAS, under and pursuant to the provisions ofthe Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seg. (the "Law"), this Council on January 20, 2009, adopted Resolution No.2009-010, declaring an intention to form a pazking and business improvement area to be known as the "Chula Vista Auto Park Business Improvement District," providing for the levy of an assessment and chazge to be imposed herein, fixing the time and place for hearing and giving notice thereof; and WHEREAS, Resolution No.2009-O10 was duly published, and copies thereof were mailed to each business owner in the area, as provided by the Law; and WHEREAS, after a preliminary review for compliance with the Califomia Environmental Quality Act (CEQA) staff previously 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 significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA; and WHEREAS, as specified in Resolution No. 2009-010, on February 10, 2009 a hearing concerning the formation of the azea was held before this Council in the Council Chambers at the City of Chula Vista City Hall, 276 Fourth Avenue, Chula Vista, California, 91910; and WHEREAS, at the hearing, 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 36525 of the Law. NOW, THEREFORE BE IT ORDAINED, by the City Council of the City of Chula Vista, as follows: Section 1. That the City Council hereby adds Chapter 5.05 to the Chula Vista Municipal Code to read as follows: C'.~Dwumems vnd Smdngs\sheveWc~LOaal Settings\Temporery Imema Files\OLK3W9_HIDOrd-4 1009-FINAL (clean cc)_04-IOA9 wtih cc revdaa Ordinance No. Page 2 CHAPTER 5.05 CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT Sections: 5.05.0] 0 5.05.020 5.05.030 5.05.040 5.05.050 5.05.060 5.05.070 5.05.080 5.05.090 5.05.100 5.05.110 5.05.120 5.05.010 -Title. Title Chula Vista Auto Park Business Improvement District Location Purpose Services and Programs Assessment Calculation Summary of Assessments Eligible Businesses Findings Future Amendments Annual Review Advisory Boazd Effective Date Pursuant to California Streets and Highways Code Section 36500, et seq. (the "Law"), a parking and business improvement azea is hereby established, to be known as the "Chula Vista Auto Pazk Business Improvement District," herein called "District " 5.05.020 -Chula Vista Auto Park Business Improvement District Location. The azea to be included in the District includes the Chula Vista Auto Park business community area, generally described as the corrunercial properties along Main StreeUAuto Park Drive between Interstate 805 and Nirvana Avenue, within the following address ranges: Auto Pazk Drive/Main Street 505 - 4555 Auto Pazk Place 1860 - 1890 Brandywine Avenue 1669 - 1690 Main Court 1810 - 1820 A map depicting the District is attached and incorporated into Ordinance No. 2009- as "Exhibit A." 5.05.030 -Purpose. 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 which will benefit businesses in the azea. C:~Documrnrs end SnringsWerak~l,oul gtttinga'~Temporuy Imemd FilesWLK3~H]_BIDOrd-2 1009-FINAL (clean cc)_02-IOA9 vnih cc rev.doc Ordinance No. Page 3 5.05.040 -Services and Programs. The improvements and activities to be provided in the District will be funded by the levy of assessments. The revenue generated by the assessments to be levied maybe utilized for some or all of the following services and programs: A. The construction and maintenance of the new vehicle dealers freeway sign 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; B. Pay for marketing and advertising to promote the area as a destination point; C. Banner program for azea to promote the District; D. Organizational operations and staff; and E. Day-to-day administration of and staff for the District 5.05.050 -Assessment Calculation. All businesses operating in the above-described azea will be assessed a share of the costs of the aforementioned services and programs as determined by the following formula: A. Base amount: In the first six months of adoption of the ordinance, there will be a mandatory minimum payment from each affected transportation dealer in the amount of $3,000 per month per business. Caz dealers/owners with separate brands pay on the basis of each business license taken out by City for first six months of assessment district. B. After six months of adoption of the district, thethree-tiered system with minimums and maximums is applied. C. Tiered system is based upon the fact that all dealers, regazdless 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 yeaz). 2. Maximum amount: The maximum amount any dealer can pay is $6,000 per month - therefore annualized sales above $48,000,001 per year aze capped at $6,000 per month. C:\D000ments and SmingsWcrak\LOCeI Set~ingsVemporery IOrtlIIM Fila\°(,~~~ BIDOrd¢ 10 09-FWAL (clean cc)_02-10-09 w[ih cc rredm Ordinance No. Page 4 5.05.060 -Summary of Assessments. The assessments to be imposed for those District businesses are as follows: Sample Assessment Methodology Based Upon Existing Six Transportation Dealers -March 2008 Annual Taxable Sales (I %) 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 $ 36,000.00 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 The above-described assessment is an annual charge and shall be levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest as in the case of the business license. For those businesses taxed for other than an annual tax period, the City shall determine the assessment to be levied upon issuance of the City business tax certificate. The total assessment collected from any business under the provisions of the ordinance shall not exceed $6,000.00 per month. 5.05.070 -Eligible Businesses. The following businesses, as identified by the North American Industrial Codes (N.A.LC.), shall be subject to the Chula Vista Auto Park Business Improvement District Those NAIC Code numbers will include: Primar T e o business NAIC Code - 2007 New Car Dealers 441110 Used Car Dealers 441120 New Recreational Vehicle Dealers 4412]0 All other New Motor Vehicle dealers 441229 C\DOCVments vW gmivgs\ahereek0.ual Stttings\Tempaary Internet Files\OLK3WA_BBJOrd-2 1009-FINAL (clan u)_0240-09 uaih cc rw tlac Ordinance No. Page 5 Each new transportation sales business license holder, as defined by the NAIC code numbers in this section, within the confines of one common lot is considered one separate entity for assessment purposes, including those situations when a single person or corporation owns multiple new vehicle dealerships. For example, if one entity has two or more dealerships on site and has a sepazate business license for each dealership that entity would be assessed on each business license issued. If, on the other hand, an entity has multiple dealerships onsite and only has one business license for all of the dealerships, then that entity would be assessed on only one business license. 5.05.080 -Findings. That the Council hereby finds and determines that the public convenience and necessity require the establishment of the District and that all of the businesses lying within the area will be benefited by the improvements and activities funded by the assessments proposed to be levied. 5.05.090 -Future Amendments. That all of the businesses in the azea established by this ordinance shall be subject to any amendments to the provisions of the Pazking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. 5.05.100 -Annual Review. All of the assessments imposed pursuant to this ordinance shall be reviewed by the City Council annually. 5.05.110 -Advisory Board. Principle office holders of the following representative businesses shall make up the District Advisory Board pursuant to California Streets and Highways Code Section 36530 BUSINESS Fuller Ford Fuller Honda McCune Chrysler, Jeep, Dodge People's Chevrolet Chula Vista Toyota 5.05.120 -Effective Date. This ordinance shall take effect and be in force on Mazch 20, 2009, and no business license for 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. C\Documenss vd Sminge\shaak\Local Settings\TemOOmry lo4mel Files\OLK3Vp_BIDOrd-2 1009-FINAL (clean a)_02-I 0-09 w[ih a rev.doc Ordinance No. Page 6 Section 2. This ordinance will take effect and be in force thirty days after final passage. Presented by James D. Sandoval City Manager Approved as to form by Bart C. Miesfeld City Attorney C.\Dacumems and Serringa\ahereekLLocal Snrinys\Tanporuy ]memet Fun\OLK3VI) 9IDOrtl-3 1009-FINAL (clean cc) oz-10-09 wah cc m:aoc " ~~7 ~\J \ seb. ~'1/0r ORDINANCE NO. ORDINAJ~CE OF THE CITY OF CHULA VISTA ESTiillLISHING THE CHULA VISTA A UTO Plv~K BUSlNESS IMPROVEMENT DISTRICT PURSUA-NT TO THE PARKING A-l\TD BUSlNESS IMPROVEMENT AREA LAW OF 1989 A-ND LEYYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRi\DING AND PROMOTING THE AREA WHEREAS, under and pursuant to the provisions ofthe Parking and Business Improvement .!\rea Law of 1989, codified as California Streets and Highways Code Section 36500, er seq. (the "Law"), this Council on January 20,2009, adopted Resolution No. 2009-010, declaring an intention to fonn a parking and business improvement area to be known as the "Chula Vista Auto Park 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 W1!EREAS, Resolution No, 2009-0] 0 was duly published, and copies thereof were mailed to each business mvner in the area, as provided by the Law; and WHEREAS, after a preliminary review for compliance with the California Environmental Quality Act (CEQA) staff previously detemlined 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 COlllil1itment to any specific project which may result in a potentially significant physical impact on the environment; therefore, pursuant to Section 15060( c)(3) ofthe State CEQA Guidelines the activity is not subject to CEQA; and W1-IEREAS, as sDecified in Resolution No. 2009-010, on February 10, 2009 a hearing , .. - ~ - -- concerning the formation of the area was held before this Council in the Council Chambers at the City of Chula Vista City Hall, 276 Fourth A venue, Chula Vista, Califomia, 91910: and WHEREAS, at the hearing, all protests, both written and oraL made or filed, were considered and duly oven'uled and denied and this Council determined that there was no majority protest \vithin the meaning of Section 36525 ofthe Law. NOW, THEREFORE BE IT ORDAiNeD, by the City Council of the City ofChula Vista., as follows: Section 1: That the City Council hereby adds Chapter 5.05 to the Chula Vista Municipal Code to read as follows: CR-\PTER 5,05 CHULA V1STA AUTO P,AJZK BUSINeSS IMPROVEJvl.ENT DISTRICT C:\Documents and Senings\CraigR\LocaJ Senings\Temporary Internet Files\OLK130\BIDOrd-2 1O 09-FTNAL.doc .' , Ordinance No. Page 2 Sections: 5.05.010 5.05.020 5.05.030 5.05.040 5.05.050 5.05.060 5.05.070 5.05.080 5.05.090 5.05.100 5.05.] ]0 5.05.120 5.05.010 - Tit]e. Tit]e Chula Vista Auto Park Business Improvement District Location Purpose Services and Programs Assessment Calcu]ation Summary of-Assessments Eligib]e Businesses Findings Future /unendments Annual Review Advisory Board Effective Date Pursuant to California Streets and Highways Code Section 36500, el seq. (the "Law"), a parking and business improvement area is hereby established, to be knO\vn as the "Chu]a Vista Auto Park Business Improvement District" herein called "District" 5.05.020 - Chu]a Vista Auto Park Business Improvement District Location. The area to be included in the District includes the Chula Vista Auto Park business community area, generally described as the commercial properties along Main Street/Auto Park Drive between Interstate 805 and Nirvana Avenue, within the following address ranges: Auto Park DriveIMain Street Auto Park Place Brandywine A venue Main Court 505 - 4555 1860 - ] 890 ] 669 - ] 690 ]810 - 1820 A map depicting the District is attached and incorporated into Ordinance No. 2009- as "Exhibit A." 5.05.030 - Purpose. The purpose of forming the District as a parking and business improvement area under the Business and Improvement i'uea Law is to provide revenue to defray the costs of services and programs which will benefit businesses in the area. 5.05.040 - Services and Programs. C:\Document5 and Settings\CraigR\Local Settings\Temporary Internet Files\OLK130\BIDOrd-: 10 09~FINAL_doc Ordinance No. Page 3 The improvements and activities to be provided in the District will be funded by the levy of assessments. The revenue generated by the assessments to be levied may be utilized for some or all of the following services and proe,'Tams: A. The construction and maintenance of the new vehicle dealers freeway sign 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 maimenmIce of the new freeway sign; B. pay for marketing and advertising to promote the area as a destination point; C. employee parking shuttle; D. banner program for area to promote the District; E. organizational operations and staff; and F. day-to-day administration of and staff for the District 5.05.050 - Assessment Calculation All businesses operating in the above-described area will be assessed a share of the costs of the aforementioned services and programs as determined by the following formula: a. Base amount: In the first six months of adoption of the ordinance, there will be a mandatory minimum payment from each affected transportation dealer in the amount of $3,000 per month per business. Car dealers/owners with separate brands pay on the basis of each business license taken out by City for first six months of assessment district. b. After six months of adoption of the district, the three-tiered system with minimums CLl1d maximums is applied. c. Tiered system is based upon the fact that all dealers, regardless of type mId 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. C:\Documents and Senings\Crai&R\Local Settin,!!s\Temporary Internet Files\OLK 130\BIDOrd-:2 10 09-FIN..1U..doc Ordinance No. Page 4 5.05.060 - Summan' of Assessments. . . The assessments to be imposed for those District businesses are as follows: Sample Assessment Methodology Based Upon Existing Six Transportation Dealers - March 2008 Annual Taxable Sales (1%) Factor I Annual Assessment I A10nthly Charge per dealer (Divided by 12) I $ 10,000,000 1.0015 I $ 36,000.00 I $ 3,000.00 Minimum i $ 20,000,000 1.0015 I $ 36,000.00 $ 3,000.00 I Minimum $ 24,000,000 .0015 I $ 36,000.00 I $ 3,000.00 Minimum $ 30,000,000 I .0015 $ 45,000.00 I $3,750.00 $ 35,000,000 I .0015 I $ 52,500.00 I $ 4,375.00 I $ 40,000,000 I .0015 $ 60,000.00 ' $ 5,000.00 $ 45,000,000 I .0015 $ 67,500.00 I $ 5,625.00 $ 48,000,000 I .0015 I $ nooo.oo I $ 6,000.00 $ 52,000.000 .0015 $ 71,000.00 $ 6,000.00 $ 60,000,000 I .0015 I $ 72,000,00 I $ 6,000.00 The above-described assessment is an annual charge and shall be levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest as in the case of the business license. For those businesses taxed for other than an annual tax period, the City shall determine the assessment to be levied upon issuance of the City business tax certificate. The total assessment collected from any business under the provisions of the ordinance shall not exceed $6,000.00 per month. 5.05.070 - Eligible Businesses The following businesses, as identified by the North lvnerican Industrial Codes (N.A.I.C.), shall be subject to the Chula Vista Auto Park Business Improvement District Those NAlC Code numbers will include: Primm-v TVDe o{business N4.1C Code - 200/ New Car Dealers I 441110 Used Car Dealers I 441 PO New Recreational Vehicle 44121 0 Dealers I All other New Motor Vehicle 441229 dealers C:\Document5 and Senings\CraigR\Loca\ Setting.s\Tem~ora,""\'lnlerne: Files\QUC130\BIDOrd-:? JO 09-FINALdoc Ordinance No. Page 5 Each new transportation sales business license holder, as defined by the NAIC code numbers in this section, within the confines of one common lot is considered one separate entity for assessment purposes, including those situations when a single person or a corporation owns multiple new vehicle dealerships, including those situations when a single person or corporation uwns multiple new vehicle dealerships. For example, if one entity has two or more dealerships on site and has a separate business license for each dealership that entity would be assessed on each business license issued. If, on the other hand, an entity has multiple dealerships onsite and only has one business license for all of the dealerships, then that entity would be assessed on only one business license. 5.05.080 - Findings. That the Council hereby finds and determines that the public convenience and necessity require the establishment of the District and that all of the businesses lying within the area will be benefited by the improvements and activities funded by the assessments proposed to be levied: 5.05.090 - Future Amendments. That all of the businesses in the area established by tlus ordinance shall be subject to any an1endments to the provisions of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, el seq. 5.05.100 -lvillual Review. All of tbe assessments imposed pursuant to this ordinance shall be reviewed by the City Council annuallv. 5.05. I 10 - Advisory Board Principle office holders of the following representative businesses shall make up the District Advisory Board pursuant to California Streets and Highways Code Section 36530 BUSfNESS Fuller Ford Fuller Honda McCune Chrysler, Jeep, Dodge People's Chevrolet Chula Vista Toyota 5.05.120 - Effective Date. This ordinance shall take effect and be in force on March 20, 2009, and no business license for commercial activities inconsistent with the provisions of this ordinance shall be issued unless C:\Documents and Senings\Craig.R\Lo::al Senings\Temporary Internet Files\OLK130\BIDOrd-~ 10 09-FINAL doc Ordinance No. Page 6 application therefore was made prior to the date of adoption ofthis ordinance. Section 2. This ordinance will take effect and be in force thirty days after [mal passage. Presented by Approved as to form by James D. Sandoval City Manager Ban .T. Miesfeld City Attorney J:\A.ttorney\MichaelSh\Auto Park Sign\PB1D\BIDOrd-2.1 O.OS-FINAL.doc C:\Documents and Settings\CraigR\!...ocal Senings\Temporary Interne: Files\OLK130IBIDOro-2 ]0 09-FINAL.doc ORDINANCE NO. ORDINANCE OF THE CITY OF CHULA VISTA ADDING CHAPTER 5.05 TO THE CHULA VISTA MUNICIPAL CODE, ESTABLISHING THE CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT PURSUANT TO THE PARKING AND BUSINESS IMPROVEMENT AREA LAW OF 1989 AND LEVYING AN ASSESSMENT AND CHARGE THEREIN FOR UPGRADING AND PROMOTING THE AREA WHEREAS, under and pursuant to the provisions of the Parking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. (the "Law"), this Council on January 20, 2009, adopted Resolution No.2009-010, declaring an intention to form a pazking and business improvement area to be known as the "Chula Vista Auto Pazk 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.2009-010 was duly published, and copies thereof were mailed to each business owner in the area, as provided by the Law; and WHEREAS, after a preliminary review for compliance with the California Environmental Quality Act (CEQA) staff previously 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 significant physical impact on the environment; therefore, pursuant to Section 15060(c)(3) of the State CEQA Guidelines the activity is not subject to CEQA; and WHEREAS, as specified in Resolution No. 2009-010, on February 10, 2009 a hearing concerning the formation of the azea was held before this Council in the Council Chambers at the City of Chula Vista City Hall, 276 Fourth Avenue, Chula Vista, Califomia, 91910; and WHEREAS, at the hearing, 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 36525 of the Law. NOW, THEREFORE BE IT ORDAINED, by the City Council ofthe City ofChula Vista, as follows: Section 1. That the City Council hereby adds Chapter 5.05 to the Chula Vista Municipal Code to read as Follows: I:UUOmey~ORDMANCES~BIDOrd~3.10.09-FMAL (clan cc) 07-10.09.dac 7-4 Ordinance No. Page 2 CHAPTER 5.05 CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT Sections: 5.05.010 5.05.020 5.05.030 5.05.040 5.05.050 5.05.060 5.05.070 5.05.080 5.05.090 5.05.100 5.05.110 5.05.120 5.05.010 -Title. Title Chula Vista Auto Pazk Business Improvement District Location Purpose Services and Programs Assessment Calculation Summary of Assessments Eligible Businesses Findings Future Amendments Annual Review Advisory Boazd Effective Date Pursuant to California Streets and Highways Code Section 36500, et seq. (the "Law"), a pazking and business improvement azea is hereby established, to be known as the "Chula Vista Auto Park Business Improvement District," herein called "District." 5.05.020 -Chula Vista Auto Park Business Improvement District Location. The azea to be included in the District includes the Chula Vista Auto Park business community azea, generally described as the commercial properties along Main Street/Auto Park Drive between Interstate 805 and Nirvana Avenue, within the following address ranges: Auto Park Drive/Main Street 505 - 4555 Auto Park Place 1860 - 1890 Brandywine Avenue 1669 - 1690 Main Court 1810 - 1820 A map depicting the District is attached and incorporated into Ordinance No. 2009- as "Exhibit A." 5.05.030 -Purpose. 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 which will benefit businesses in the area. 1:W rtomeyWRDMANCES~BIDOrd-2.10.09-FMAL (clean a~ 02~10.09.dm 7-5 Ordinance No. Page 3 5.05.040 -Services and Programs. The improvements and activities to be provided in the District will be funded by the levy of assessments. The revenue generated by the assessments to be levied may be utilized for some or all of the following services and programs: A. The construction and maintenance of the new vehicle dealers freeway sign 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; B. Pay for marketing and advertising to promote the area as a destination point; C. Employee parking shuttle; D. Banner program for azea to promote the District; E. Organizational operations and staff; and F. Day-to-day administration of and staff for the District 5.05.050 -Assessment Calculation. All businesses operating in the above-described azea will be assessed a share of the costs of the aforementioned services and programs as determined by the following formula: A. Base amount: In the first six months of adoption of the ordinance, there will be a mandatory minimum payment from each affected transportation dealer in the amount of $3,000 per month per business. Car dealers/owners with separate brands pay on the basis of each business license taken out by City for first six months of assessment district. 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 yeaz 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 yeaz aze capped at $6,000 per month. J:U°omey~O0.DMANCESV3fDOrd-2.10.09-FW AL (clean cc)_02-10-09.da 7-6 Ordinance No. Page 4 5.05.060 -Summary of Assessments. The assessments to be imposed for those District businesses are as follows: Sample Assessment Methodology Based Upon Existing Six 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 $ 36,000.00 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 The above-described assessment is an annual charge and shall be levied, collected and enforced in the same manner, at the same time, and with the same penalties and interest as in the case of the business license. For those businesses taxed for other than an annual tax period, the City shall determine the assessment to be levied upon issuance of the City business tax certificate. The total assessment collected from any business under the provisions of the ordinance shall not exceed $6,000.00 per annum. 5.05.070 -Eligible Businesses. The following businesses, as identified by the North American Industrial Codes (N.A.I.C.), shall be subject to the Chula Vista Auto Pazk Business Improvement District Those NAIC Code numbers will include: Prima T e o business NAIC Code - 2007 New Car Dealers 441110 Used Car Dealers 441120 New Recreational Vehicle Dealers 441210 All other New Motor Vehicle dealers 441229 1:Ntromey~ORDMANCFSBmOed-2.10.09-FMAL(clun cc) 02-IO-09.doc 7-7 Ordinance No. Page 5 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. 5.05.080 -Findings. That the Council hereby finds and determines that the public convenience and necessity require the establishment of the District and that all of the businesses lying within the area will be benefited by the improvements and activities funded by the assessments proposed to be levied. 5.05.090 -Future Amendments. That all of the businesses in the area established by this ordinance shall be subject to any amendments to the provisions of the Pazking and Business Improvement Area Law of 1989, codified as California Streets and Highways Code Section 36500, et seq. 5.05.100 -Annual Review. All of the assessments imposed pursuant to this ordinance shall be reviewed by the City Council annually. 5.05.110 -Advisory Board. Principle office holders of the following representative businesses shall make up the District Advisory Board pursuant to Califomia Streets and Highways Code Section 36530 BUSINESS Fuller Ford Fuller Honda McCune Chrysler, Jeep, Dodge People's Chevrolet Chula Vista Toyota 5.05.120 -Effective Date. This ordinance shall take effect and be in force on Mazch 20, 2009, and no business license for 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. 1:Utbmey~ORDMANCES~BIDOrd-3.10.09-FILIAL (clean ccl_03.1409.dac 7-8 Ordinance No. Page 6 Section 2. This ordinance will take effect and be in force thirty days after final passage. Presented by Approved as to form by James D. Sandoval / Bart City Manager kU~ZCity Attorney I:UnomeyUJRDMANCE5IBIDON-2.10.09-FQiA1 (clwn cc~ 02-10.09.doc 7-9 a I Z #~ W ~vSt` uY ~' . 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