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Home My WebLink AboutOrd 2009-3125ORDINANCE NO. 3125 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 Pazking 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, declazing an intention to form a parking and business improvement area to be known as the "Chula Vista Auto Pazk 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.2009-010 was duly published, and copies thereof were mailed to each business owner in the azea, 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 area 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: Ordinance No. 3125 Page 2 CHAPTER 5.05 CHULA VISTA AUTO PARK BUSINESS IMPROVEMENT DISTRICT Sections: 5.05.010 Title 5.05.020 Chula Vista Auto Park Business Improvement District Location 5.05.030 Purpose 5.05.040 Services and Programs 5.05.050 Assessment Calculation 5.05.060 Summazy of Assessments 5.05.070 Eligible Businesses 5.05.080 Findings 5.05.090 Future Amendments 5.05.100 Annual Review 5.05.110 Advisory Boazd 5.05.120 Effective Date 5.05.010 -Title. Pursuant to California Streets and Highways Code Section 36500, et seq. (the "Law"), a parking and business improvement area 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 azea, generally described as the commercial properties along Main StreetlAuto Park Drive between Interstate 805 and Nirvana Avenue, within the following address ranges: Auto Park 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. 3125 as "Exhibit A." 5.05.030 -Purpose. The purpose of forming the District as a pazking 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. Ordinance No. 3125 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 area will be assessed a shaze 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, 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 yeaz aze capped at $6,000 per month. Ordinance No. 3125 Page 4 5.05.060 -Summary of Assessments. The assessments to be imposed for those District businesses aze as follows: Sample Assessment Methodology Based Upon Existing Six Transportation Dealers - Mazch 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 chazge 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 Caz Dealers 441110 Used Caz Dealers 441120 New Recreational Vehicle Dealers 441210 All other New Motor Vehicle dealers 441229 Ordinance No. 3125 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 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 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. Ordinance No. 3125 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 B C. Mie d City Atto PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista, California, this 17th day of February 2009, by the following vote: AYES: Councilmembers: Bensoussan Castaneda, McCann, Ramirez, and Cox NAYS: Councilmembers: None ABSENT: Councilmembers: None Cr Cheryl Cox, ay ATTEST: uut o Donna R. Norris, CM ,City Clerk STATE OF CALIFORNIA COUNTY OF SAN DIEGO CITY OF CHULA VISTA I, Donna R. Norris, City Clerk of Chula Vista, Califomia, do hereby certify that the foregoing Ordinance No. 3125 had its first reading at a regular meeting held on the 10th day of February 2009 and its second reading and adoption at a regulaz meeting of said City Council held on the 17th day of February 2009; and was duly published in summary form in accordance with the requirements of state law and the City Charter. Executed this 17th day of February 2009. n ~j~/// O Donna R. Norris, MC, ity Clerk EXHIBIT A Ordinance No. 3125 Page 7 I ~ ; C a i ~ C ~ R - ~ ~ `` ~ ~ +p x ~ ~ " ' ~ ~ ~ ~'" ~; `~ n. 'o `~T~~~..' . , ~" O = ., x x„ sr 3 O n ~ v m ~ ~ N IC ~ . ~ eo r ~f~ ~+. '~ a~ ao ~>m~ + ,~ ° ' s+ ' ~ ; x<xa > w H ~ ~ ~~h~~T ~ ~ 7 M y ~ ~~ j'~. g i p S i yiu ~ ~ ~ O ' ~ s z t~~t z~ r-r(f~.~k x a q X ~` x 2 ~ { :r O x .,, p ~kr+ ~' 'u rc '~x'~ ~ r ~ , . ~: 2i ' ' r ~ x. ~ ntl YL tld P lC Y A ~I x ~ ~ F StC ~7 2t £ ~ ~ x „~ 4, ~ 1'~ I ~ ~~J , 2 % k ~ u rn 1 ' ~I/ r,4 c `~ x td NMtld QllN t~ ~ ~ j: ` ~ ~1 {{ N1 N i ~ t x ~ ~ ~ N ~ i I t ~ ;: ;, ~ ry p Y 2' t ~ f 3 F 2 .(' ~ i' {y{,y " .N' {~ k. ~ m ~ x E c r s~ '~ i an ~% CI , .. A NlMB $ ~ ~ } nV 3NLN O ~ y ~ ~ ~ E~r~~ix ~4 L"' rte! 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