HomeMy WebLinkAboutCC RESO 2005 - 154RESOLUTION NO. 2005 — 154
RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF NATIONAL CITY
DECLARING ITS INTENTION TO PROVIDE FOR AN
ANNUAL LEVY AND COLLECTION OF ASSESSMENTS
IN THE DOWNTOWN NATIONAL CITY
PROPERTY BUSINESS IMPROVEMENT DISTRICT, AND
SETTING A TIME AND PLACE FOR PUBLIC MEETING
AND A PUBLIC HEARING THEREON
WHEREAS, the City Council of the City of National City, California, has
previously formed a special maintenance district pursuant to the terms of the "Property
and Business Improvement District Law of 1994", being Division 18, Part 7 (Section
36600 et seq.) of the Streets and Highways Code of the State of California, said special
maintenance district known and designated as the Downtown National City Property
Business Improvement District (hereinafter referred to as the "District"); and
WHEREAS, at this time the City Council is desirous to take proceedings to
provide for the annual levy of assessments for the next ensuing fiscal year to provide for
the annual costs for maintenance of improvements within the Maintenance District; and
WHEREAS, there has been presented and approved by this City the
Assessment Engineer's Report ("Report"), as required by Section 36600 et seq. of the
Streets and Highways Code and Article XIII D of the Constitution ("Article XIII D"), and
this City Council is desirous of continuing with the proceedings for said annual levy.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
National City as follows:
Section 1.
RECITALS
The above recitals are all true and correct
PROCEDURES
Section 2. That the public interest and convenience requires, and it is the
intention of this legislative body, to levy and collect assessments to pay the annual
costs and expenses for the maintenance and/or servicing of the improvements for the
above -referenced Maintenance District, said improvements generally described as set
forth in Exhibit "A" attached hereto and incorporated herein by this reference.
BOUNDARIES OF MAINTENANCE DISTRICT
Section 3. That said works of improvement are of special benefit to the
properties within the boundaries of said Maintenance District, which Maintenance
District the legislative body previously declared to be the area specially benefited by
Resolution No. 2005 — 154
July 19, 2005
Page 2
said works of improvement, and for particulars,
as previously approved by this legislative body,
the City Clerk and open for public inspection,
Maintenance District.
reference is made to the boundary map
a copy of which is on file in the Office of
and is designated by the name of this
REPORT OF ENGINEER
Section 4. That the "Report" of the Engineer, as preliminary approved by this
legislative body, is on file with the City Clerk and open for public inspection. Reference
is made to said "Report" for a full and detailed description of the improvements to be
maintained, the boundaries of the Maintenance District and any zones therein, and the
proposed assessments upon assessable lots and parcels of land within the
Maintenance District.
PUBLIC MEETING
Section 5. NOTICE IS HEREBY GIVEN THAT A PUBLIC MEETING AND A
PUBLIC HEARING ARE HEREBY SCHEDULED IN THE REGULAR MEETING PLACE
OF THIS LEGISLATIVE BODY, BEING THE COUNCIL CHAMBERS, CITY HALL, 1243
NATIONAL CITY BOULEVARD, NATIONAL CITY, CA, ON THE FOLLOWING DATES:
A. PUBLIC MEETING: August 1, 2005 AT 4:OOPM
B. PUBLIC HEARING: August 2, 2005 AT 6:OOPM
ALL INTERESTED PERSONS SHALL BE AFFORDED THE OPPORTUNITY TO HEAR
AND BE HEARD. THE CITY COUNCIL SHALL CONSIDER ALL ORAL STATEMENTS
AND ALL WRITTEN PROTESTS OR COMMUNICATIONS MADE OR FILED BY ANY
INTERESTED PERSONS.
ATTEST:
4
PASSED and ADOPTED this 19th day of July, 2005.
APPROVED AS TO FORM:
Mic ael Dalla, City ° Ierk George H. Eiser, III
City Attorney
RECEI
VED E�v. � tiD
Community
Development
DOWNTOWN NATIONAL CITY
PROPERTY BUSINESS IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Formed Under California Streets and Highway Code Section 36600
Property Business Improvement District Act of 1994
FINAL PLAN
SUBMITTED TO:
THE DOWNTOWN NATIONAL CITY
P.B.I.D. STEERING COMMITTEE
THE CITY OF NATIONAL CITY
COMMUNITY DEVELOPMENT COMMISSION
EXECUTIVE DIRECTOR BEN MARTINEZ
MAYOR NICK INZUNZA
AND CITY COUNCIL MEMBERS LUIS NATIVIDAD, RON
MORRISON, FRANCISCO PARRA AND FIDELAS UNGAB
PRESENTED BY:
MARCO LI MANDRT, NEW CITY AMERICA INC.
APPROVED APRTL 30, 2004
UPDATED MAY 24, 2004
l
EXHIBIT"A"
PART I
EXECUTIVE SUMMARY
DOWNTOWN NATIONAL CITY MANAGEMENT DISTRICT PLAN
Statement of Purpose
Over the past two years, the people of San Diego County have begun to see National City in
a whole new light. Long identified with the extremely successful National City Mile of
Cars, the City now has the distinct identity of a municipal corporation aggressively moving
forward on a number of fronts. Whether it be the visionary Marina project, the
development of Filipino Village, the beautification of Highland Avenue or the creation of
the Education Village in Downtown National City, more things are happening in this City
than almost anywhere else in the County. Under the leadership of the Mayor and City
Council, as well as the staff of the Community Development Commission, National City is
in a race to re -position itself as a great City with bustling commerce, historic significance, a
great urban forestry plan, strengthening of ethnic neighborhoods and experimenting with
what makes Downtowns work in the 20 Century.
Led by a group of significant, small and long-time business and property owners, this effort
to establish a Property Business Improvement District was initiated in March 2004. With
great speed and tremendous commitment, it is the intent of this district to be established
and generate its first revenues by the conclusion of calendar year 2004. Such an
undertaking is unprecedented but reflects the seriousness of the effort of the Downtown
stakeholders to redefine themselves to the surrounding region.
With the growing state budget crisis in California and its resulting impact on the cities, it is
safe to assume that current National City general benefit services delivered in the
Downtown business district will not increase in the future. To make the Downtown district
and community better, commercial and institutional property owners must look at new
ways of funding special benefit services to clean up the district as well as promote the area.
Such special benefit services could include bringing a new identity to the Downtown
business district, funding new gateway signs to the district, regular sidewalk sweeping,
sidewalk steam cleaning, removal of bulky items, trash receptacle emptying, providing
private security services above and beyond that of the National City Police Department,
aiding in the coordination of homeless intervention services, proposing solutions to parking
problems, initiating beautification programs, tree planting and maintenance, coming up
with new marketing and promotions programs, defining greater visual linkages to the 8th
Street Trolley stop as well as serving as an advocacy group of business and property
owners.
This proposed Downtown National City PBID or special benefits district would be funded
through an assessment levied on each and every parcel in the finalized and approved
boundaries in Downtown. Affected property owners have determined the exact costs of
funding these special benefit services. All properties, public and private, would be included
in this new assessment district.
3
➢ 70% support property owner funded special events to improve the identity of
Downtown;
Based upon this level of support, the Downtown National City PBID Steering Committee is
presenting the following to all Downtown Property Owners for their consideration:
PROPERTY VARIABLES TO BE ASSESSED:
Three property variables will be used to fund the special benefit services of the district.
Those variables will include: lot or parcel size, building square footage, and linear
frontage. Each of these variables can be verified by County records. By law, the district
can only fund special benefits, not general benefit services. Building square footage will be
further categorized by "use", (retail, hotel, church, public building, office, etc). Use
determines needs and therefore special benefit to be received.
SERVICES TO BE FUNDED:
The primary special benefits to be funded by the creation of the district will be related to
maintaining order and cleanliness in the public rights of way. In addition, beautification of
the Downtown will be paramount as well as creating concrete visual linkages between the
Trolley stop west of the freeway and the heart of the business district at 8th and National
City Boulevard. After order and beautification, district identity and promotional
programs will be funded. Finally, a component for administration/corporate affairs and
contingency/reserve will be included in the budget. Consistent with state legislation, the
district shall remain in place for five years with provisions for annual CPI adjustments as
well as annual disestablishments procedures.
BENEFIT ZONES:
There will be two benefit zones in the proposed district. Benefit Zones are determined by
the level and frequency of services to one sector of the district, vs. another. For example,
the core area parcels along National City Boulevard between 2"d and 12`h, as well as 8th
Street from the freeway bridge to A Avenue, will constitute Benefit Zone 1. All other
parcels in the district will fall into Benefit Zone 2.
ANNUAL BUDGET:
The annual first year budget is anticipated to be $240,722.01. Benefit Zone 1 parcels will
pay a premium due to increased services and increased benefits anticipated to be derived
from the formation of the district. Building use will determine the annual building square
footage costs, by Benefit Zone. The proposed building uses have been categorized as
follows. Each parcel has been analyzed to determine proper category of use and therefore
benefit: (Internal parking built into structure will be credited to overall building size).
5
PART II
ADDRESS SERIES, GENERAL STREET BOUNDARIES
LOCATION: In general, the Downtown National City PBID includes all private and public
parcels within the following boundaries:
Street Address Series
Street Name
704-724
A Avenue
827
B Avenue
811— 817
C Avenue
831 — 835
D Avenue
41— 43
E. 12`h St.
14-35
E.3" St.
10
E. 5th st.
22-404
E. 8th St.
419
E. 9th St.
810 — 925
Hoover Avenue
205 — 1146
National City Blvd.
225 — 1133
Roosevelt Avenue
25 — 38
W. l lth St.
21
W. 12`h St.
30
W. 2nd Avenue
21 — 27
W 3rd Avenue
21
W 7`hSt
110 — 200
W. 8`h St.
111- 225
W. 9` St.
32 — 121
W. Plaza Blvd.
7
Consistent with state law, any property assessment district must confer a special benefit to
real property owners paying into the assessment district. At times, specific parcels will
derive greater benefit, due to their proximity to a "core" area. These core and peripheral
parcels, will from time to time, be designated through "benefit zones." The Downtown
National City PBID anticipates two benefit zones, each receiving varying degrees of special
benefits funded from the assessment district. The two benefit zones are proposed as
follows:
Benefit Zones:
The Downtown National City PBID Benefit Zones are created based upon the frequency
and type of special benefit services that might be desired. For example, the core area near
National City Boulevard and 8th Street may need special benefit services six days per week,
have large special events and be the focus of many promotional activities. These property
owners would pay for those specific special benefit services based upon the anticipated
benefit to be received.
Benefit Zone
Zone 1
(core area)
Zone 2
(peripheral area)
Boundaries
National City Boulevard from 2"d to 126 Street
8th Street from the freeway bridge to A Avenue
All other streets in the district not included in Benefit Zone 1
TABLE 1 - FREQUENCY OF SPECIAL BENEFIT SERVICES BY BENEFIT ZONES
Special Benefit Service
Benefit Zone 1
Frequency
6 days per week
Benefit Zone 2
Frequency
4 days per week
Public rights of way and
sidewalk operations
(PROWSO)
District Identity and
Streetscape Improvements
(DISI)
• Special Events
■ Holiday Decorations
Through
programs
Once per year
Seasonally
Through programs
None
None
Administration/Corporate
Operations
Monday — Friday
Monday — Friday
9
*THE PURPOSE OF THIS CALCULATION IS TO PROVIDE A MATERIAL BASIS
FOR THE P.R.O.W.S.O. PERSONNEL COSTS. THE ADMINISTERING
CORPORATION CAN CONTRACT OUT THESE SERVICES TO A FOR -PROFIT OR
NON-PROFIT CORPORATION, OR PROVIDE THE SERVICES IN HOUSE. THESE
COSTS ARE ONLY USED AS A REFERENCE, THE LINE ITEM IN THE BUDGET
FOR THE P.R.O.W.S.O. PERSONNEL IS ESTIMATED TO BE $132,500.00
ANNUALLY.
The basis of determining personnel costs is derived from One Source, a nationwide
company that provides employees for many building management companies, as well as
BIDs. One Source's rates on labor include workers comp, payroll taxes, check
disbursement, health benefits, vacation and sick time. Most importantly, these are
contracted employees and therefore release the management corporation of payroll and
personnel related liabilities. Total overhead factor of employees, fully loaded, is about 1.6
in an overhead factor from the base wage rate. Supervisor rate was calculated at $ 12.00
per hour, and maintenance workers at $8.00 - 9.00 per hour, starting pay.
We reiterate that this is simply a tool for calculating costs of maintenance personnel. The
free market, and competitive bidding may produce higher and better results. It is the job
of the management corporation to maximize the delivery of special benefit services to the
property owners based upon various category and line items of services. The function of
this crew is to deal with all services in the public rights of way, including but not limited to:
sweeping, beautification, decorations, security, etc.
TABLE 3 — SPECIAL BENEFIT SERVICES/P.R.O.W.S.O. NON -PERSONNEL ANNUAL COSTS
INCLUDING EQUIPMENT AND MATERIALS
PROWSO Equipment and Materials
Estimated Annual Cost
Truck lease, insurance
$ 6,000
Uniforms
$ 1,000
Communications
$ 4,000
Supplies
$ 8,000
Water
$ 1,000
Dumpster costs
$ 6,000
Nursery Items
$ 8,000
Small Equipment
$ 3,000
Miscellaneous
$ 3,500
Total Estimated Annual Equipment Costs
$ 40,500
Again, these services may be provided by an outside contractor, however accommodations
must be made for these costs whether done in-house of to an outside contractor. In
addition, this budget does not assume any grants from public agencies or foundations that
could underwrite the costs of equipment. Nor does it assume that the City would pay for
landscaping water related costs or durnpster removal fees, both of which could be
negotiated with the CDC.
11
TABLE 7 — TOTAL FIRST YEAR DOWNTOWN NATIONAL CITY SPECIAL BENEFIT SERVICES
BUDGET LINE ITEMS BASED UPON SUGGESTED PROGRAMS AND ALLOCATIONS
Program
First Year Allocation
% of Total Budget
Public Rights of Way and
Sidewalk Operations —
Personnel and Equipment for
All Benefit Zones
$ 173,000.00
72%
District Identity and
Streetscape Improvements
$ 14,000.00
6%
Administrative/Corporate
Operations
$ 41,000.00
17 %
Contingency/Reserve
$ 12,722.01
5%
Total Estimated First Year
Costs of Programs
$ 240,722.01
100%
METHOD OF FINANCING:
This method of financing the special services is based upon the levy of assessments on real
property that benefits from proposed improvements and activities. This represents a
"benefit assessment district" as defined in the California Streets and Highway Code.
Assessed valuation cannot be used as the basis for special benefits assessments due to the
introduction of Proposition 13 into the state constitution in 1978. There are at least four
basic factors that will be used in determining individual assessments. These factors include
1) linear frontage, 2) land area and 3) building square footage, 4) building use. The
assessments for the Downtown National City PBID are based upon these variables, which
have been endorsed by the property owners as the most fair and equitable for
apportionment of assessments to participating parcels. Linear frontage will be assessed on
all sides of the parcel receiving benefit.
PBID assessments would be collected annually by the San Diego County tax assessor and
would appear as a line item on the annual property tax bills. The assessments are collected
by the County and transferred to the City of National City. They are then transferred
directly to the Downtown National City PBID Management Corporation. The funds are
then allocated consistent with the previously agreed upon programs in the Management
District Plan.
TABLE 8 - TOTAL GROSS DOWNTOWN NATIONAL CITY PBID PROPERTY VARIABLES
Property Variables
Total in District
Lot Size
1,465,301 square feet
Building Size
448,344 square feet
Linear Feet
21,744 linear feet
There are 153 parcels and 96 legal owners currently in the database of the above
mentioned property variables. There are about 34 square blocks in the district.
13
TABLE 10 — APPORTIONMENT OF SERVICES TO PROPERTY VARIABLES
Program to be Funded
Benefit Zone
Apportioned to Variable
PROWSO:
• Maintenance Personnel
1
'/ to all building square footage,
($ 81,610)
'A to all lot size in Benefit Zone 1
■ Maintenance Personnel
2
V2 to all building square footage,
($50,890)
'/2 to all lot size in Benefit Zone 2
■ Non -personnel, equipment
1, 2
All linear frontage, apportioned
($ 40,500)
equally in both Benefit Zones
DISTRICT IDENTITY AND
STREETSCAPE IMPROVEMENTS:
■ Special events (1 per year)
1
Building square footage "a" only
( $5, 000)
• Logo creation
1, 2
Building square footage a — c
($1, 000)
• Web site creation/maintenance
1, 2
Building square footage a — c
($ 4,000)
• Pedestrian kiosks/signage
1, 2
Building square footage a — d
($ 4,000)
ADMINISTRATION AND CORPORATE
1, 2
Apportioned equally to all lot size
OPERATIONS
($ 41,000)
in both zones
CONTINGENCY/RESERVE
1, 2
Apportioned equally to all lot size
($12,722.01)
in both zones
The assessment methodology annual costs are summed up in the following table:
15
TABLE 12 - DOWNTOWN NATIONAL CITY PBID FIRST YEAR COSTS BY PROPERTY VARIABLE
PROPERTY
VARIABLE
ANNUAL COST
BENEFIT ZONE 1
ANNUAL COST
BENEFIT ZONE 2
TOTAL GENERATED
BY VARIABLE
Lot Square Footage
$ 0.0841 per square
foot per year
$0.0757 per square
foot per year
$118,053.09 (49%)
Building Square
Footage (range)
$ 0.1485-$0.1886 per
square foot per year
$0.1485-$0.1697 per
square foot per year
$80,075.68 (33%)
Linear Frontage
$1.8264 per linear
foot per year
$1.8264 per linear
foot per year
$39,713.24 (17%)
Single Family Home
and Condo Annual
Fee
$ 240.00
$240.00
$2,880.00 (1%)
Total Annual
Budget
$240,722.01
TABLE 13 - AMOUNTS GENERATED BY DOWNTOWN NATIONAL CITY PBID
Property Variable
Total Gross Variable,
Both Benefit Zones
Amount Generated First
Year
Parcel or Lot Size
1,465,301
$118,053.09
Building Square Feet
448,344
$80,075.68
Linear Frontage
21,744
$39,713.24
Single Family Home
and Condo Annual Fee
12
$2,880.00
Total Assessments, First
Year — Both Zones
$240,722.01
17
FORMATION:
■ District formation requires submittal of petitions from property owners
representing at least 50% of the total assessment. The "Right to Vote on Taxes Act"
(Proposition 218) requires that more than 50% of the ballots received, weighted by
assessment, be in support of the District.
• This petition support ensures that the mail ballot procedure will be successful in the
formation of the district. Once the necessary threshold of petitions have been
collected, the management district plan will then be submitted to the City to begin
processing the public hearing. With the adoption of an ordinance of intention, the
City Council will authorize the City Clerk to send out the mail ballots to all affected
property owners to determine their support for the establishment of the district.
■ When all is said and done, the first assessments should be collected with the annual
property tax bill in December 2004 with the Management Corporation receiving its
first installment payment in January 2005.
DURATION:
• Pursuant to State Law, the District will have a set term. The proposed district will
have a five-year life commencing January 1, 2005. After five years, the petition
process must be repeated for the District to be re-established.
19
PART VI
ENGINEER'S REPORT, EXEMPTIONS, ANNUAL ASSESSMENT
INCREASES AND THE DURATION OF THE DISTRICT
A. Assessment Methodology
Property owners in Downtown National City have emphasized that an assessment formula
for a PBID be fair, balanced and commensurate with special benefits received.
NEW CITY AMERICA has contracted with Ed Henning and Associates to come up with a
plan that has been certified by a licensed engineer.
In preparing the engineer's report for the Downtown National City PBID, the engineer
concluded that the special benefit to each parcel was found to be proportional to the
property variable and their apportionment.
An Engineer's report for the PBID is provided in the Appendix.
B. Time and Manner for Collecting Assessments:
As provided by state law, the Downtown National City Property Business Improvement
District will appear as a separate line item on the annual property tax bills prepared by the
San Diego County Tax Assessor. Property tax bills are generally distributed in the Fall
and payment is expected by lump sum or in two installments. The County Assessor shall
distribute the assessments to the City who will in turn then forward them to the designated
Downtown National City PBID Management Corporation pursuant to the authorization of
this plan. Existing laws for enforcement of property taxes apply to the Management
District assessments.
The assessments shall be collected at the same time and in the same manner as for any
possessory interest tax paid to the County of San Diego. These assessments shall provide
for the same lien priority and penalties for delinquent payment as is provided for the
possessory interest tax.
The "property owner" of the possessory interest shall be any person as the owner/taxpayer
on the Last equalized possessory interest assessment roll or otherwise known to be the
owner/taxpayer by the City Council. The City Council has no obligation to obtain other
information as to the ownership of the interest, and its determination or ownership shall be
final and conclusive for the purposes of this district.
21
PART VII
DISTRICT GOVERNANCE AND THE
DOWNTOWN NATIONAL CITY P.B.LD.
MANAGEMENT CORPORATION
A few rules and regulations should be considered by the Downtown National City PBID
Management Corporation in the administration of the district.
Conflict of Interest:
Any stakeholder who serves on the administering corporation's Board of Directors
shall recuse himself or herself from any vote in which a potential conflict of interest
is apparent. Such potential conflicts include, but are not limited to, prioritizing
capital improvement projects which result in special benefit to specific property
owners, prioritization of services to benefit a particular owner or group of owners,
hiring or selecting the relatives of Board members, etc.
In addition, the Management Corporation shall aim to meet the following operational
objectives for the district...
•
•
•
Create and manage programs that best respond to the top priorities of district property
owners;
Maximize coordination of the City government to avoid duplication of services and to
leverage resources;
Deliver services through a cost-effective, non -bureaucratic and easy to access
organizational structure;
Provide accountability and responsiveness to those who pay through open access to
Board meetings, elections to the Board and Board records.
23
Downtown National City PBID
Benefit Zone 1
Benefit Zone 2
Downtown National City P.B.I.D.
FIVE YEAR PROJECTION OF ASSESSMENTS
WITH 5% ANNUAL ADJUSTMENT
2005
5%
Projected Budget
Public Rights of Way and
$8,650.00
Sidewalk Operations
District Identity and
$173,000.00
$14,000.00
$700.00
Streetscape Improvements
Administrative/Corporate
$41,000.00
$2,050.00
Operations
Contingency/Reserve
$12,722.01
$240,722.01
$636.10
$12,036.10
Total
2006
$181,650.00
$14,700.00
$43,050.00
$13,358.11
$252,758.11
5%
$9,082.50
$735,00
$2,152.50
$667.91
$12,637.91
2007
$190,732.50
$15,435.00
$45,202.50
$14,026.02
5265,396.02
5%
$9,536.63
$771.75
$2,260.13
$701.30
$13,269.80
2008
$200,269.13
$16,206.75
$47,462.63
$14,727.32
$278,665.82
$10,013.46
$810.34
$ 2,373.13
$736.37
$13,933.29
2009
$210,282.58
$17,017.09
$49,835.76
$15,463.68
5292,599.11
6/8/04
APN
55., A0 01 00
555 030 02 00
555 030 03 00
555 030 04 00
555 030 05 00
555 030 06 00
555 030 07 00
555 030 08 00
555 030 09 00
555 030 10 00
555 030 11 00
555 030 12 00
555 030 13 00
555 030 14 00
555 030 17 00
555 030 20 00
5 J30 21 00
555 030 22 00
555 041 01 00
555 041 02 00
555 041 03 00
555 041 04 00
555 041 05 00
555 041 06 00
555 041 07 00
555 041 08 00
555 041 09 00
555 041 10 00
555 042 10 00
55'"� 042 15 00
555 042 17 00
555 042 18 00
5. J52 04 00
5550520500
555 052 06 00
555 052 14 00
Annual
Assessment
$240.00
$427.32
$0.00
$0.00
$240.00
$0.00
$240.00
$1,358.46
$278.41
$339.52
$270.50
$344.51
$282.92
$500.53
$1,089.50
$4,997.45
$3,644.29
$6,609.58
$878.28
$472.48
$3,616.36
$1,063.44
$570.74
$571.49
$694.46
$511.82
$511.82
$1,206.28
$1,080.70
$3,104.82'
$3,458.95
$7,001.77
$694.46
$649.75
$471.60
$2,453.40
APN
555 052 15 00
555 053 17 00
555 054 12 00
555 081 09 00
555 081 10 00
555 081 14 00
555 081. 15 00
555 081 16 00
555 081 17 00
555 082 01 00
555 082 02 00
555 082 03 00
555 082 04 00
555 082 05 00
555 082 06 00
555 082 10 00
555 082 11 00
555 083 21 00
555 083 22 00
555 083 23 00
555 083 24 00
555 085 01 00
555 085 02 00
555 085 03 00
555 085 04 00
555 085 05 00
555 085 06 00
555 085 07 00
555 113 04 00
555 113 0500
555 113 08 00
5551131100
5551131200
5551131300
555 114 01 00
555 114 02 00
NATIONAL CITY PBID
PARCELS TO BE ASSESSED
Annual
Assessment
$2,361.54
$22,785.90
$6,377.83
$510.24
$267.23
$396.50
$216.88
$695.37
$1,992.94
$1,855.29
$244.19
$527.88
$399.68
$1,137.98
$960.23
$1,533.33
$4,097.40
$1,846.85
$5,094.43
$2,989.50
$5,751.78
$622.48
$240.00
$240.00
$464.11
$2,797.35
$187.37
$4,258.90
$808.87
$792.75
$1,269.33
$2,084.78
$1,569.72
$1,133.05
$240.00
$240.00
APN
555 114 03 00
555114 0400
555 114 05 00
555 114 06 00
555 114 07 00
555 114 11 00
555 114 12 00
555 114 13 00
556 101 01 00
556.101 02 00
556 101 1500
556 101 16 00
556 104 01 00
556 104 02 00
556 104 18 00
5562102500
556 210 26 00
5562102700
556 212 01 00
556 212 02 00
556 212 03 00
556 212 04 00
556 212 05 00
556 212 06 00
556 212 07 00
556 331 03 00
556 331 04 00
556 331 05 00
556 331 14 00
556 331 15 00
556 331 20 00
556 331 21 00
556 331 22 00
556 331 23 00
556 331 24 00
556 331 25 00
Annual
Assessment
$215.59
$220.14
$452.48
$652.46
$1,151.14
$330.42
$1,594.28
$1,569.62
$1,614.58
$1,815.33
$5,492.84
$2,276.33
$2,485.63
$240.00
$1,820.45
$1,662.72
$1,510.43
$1,077.40
$240.00
$240.00
$496.74
$276.94
$419.14
$563.61
$754.77
$249.09
$505.91
$1,181.45
$2,439.68
$926.31
$748.13
$2,720.06
$1,255.39
$566.21
$715.80
$3,133.35
APPENDIX D
ENGINEER'S REPORT
27
Edward Henning & Associates
URBAN REVITALIZATION • FUNDING
DISTRICT ASSESSMENT ENGINEER'S REPORT
To Whom It May Concern:
I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting
properties located within the proposed Downtown National City Property Business Improvement District will receive
a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed
assessment is proportional to, and no greater than the benefits conferred on each respective property.
eica/ Prepare. by Edward V. Henning, California Registered Professional Engineer # 26549
t
Edward V. He
RPE #26549
June 1, 2004
Date
(NOT VALID WITHOUT EMBOSSED CERTIFICATION SEAL AND SIGNATURE HERE)
Introduction
This report shall serve as the "detailed engineer's report" required by Section 4(b) of Article XIIID of the California
Constitution (Proposition 218) to support the benefit property assessments proposed to be levied within the
Downtown National City Property Business Improvement District (Downtown National City PBID) in the City of
National City, California being established for a five year period_ The discussion and analysis contained within
constitutes the required "nexus" of rationale between assessment amounts levied and special benefits derived by
properties within the Downtown National City PBID.
NOTE 1: The terminology "identified benefiting parcel" or "property" is used throughout this report pursuant to SB
919 - "Proposition 218 Omnibus Implementation Act" which clarified portions of Prop 218. It provides the Engineer
and District Consultant with the ability to actually identify individual parcels which will benefit directly either in
whole or in part from the proposed District funded programs and improvements and does not imply that all parcels
receive assessable benefits .
13330 Buttemere Rd • Phelan CA 92371 • (760) 868-9963 • (fax) (76o) 868-6490 • mred2@earthlink.net
Edward Henning & Associates
URBAN REVITALIZATION • FUNDING
From this, the value of a basic benefit unit or "basic net unit cost" can be computed by dividing the total amount of
estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be
computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is
known as "spreading the assessment" or the "assessment spread" in that all costs are allocated proportionally or
"spread" amongst all properties within the PBID.
The method and basis of spreading program costs varies from one PBID to another based on local geographic
conditions, types of programs and activities proposed, and size and development complexity of the district. PBIDs
may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or
"stepped -down" benefits derived.
Supplemental Proposition 218 Procedures and Requirements
Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures
and requirements to be carried out prior to levying a property -based assessment like the Downtown National City
PBID. These requirements are in addition to requirements imposed by State and local assessment enabling laws.
These requirements were "chaptered" into law as Article XIIID of the California Constitution and then further
clarified by the Proposition 218 Omnibus Legislation in 1997 chaptered in section 53750 et seq of the California
Government Code.
Since Prop 218 provisions will affect all subsequent calculations to be made in laying out the final property
assessment roll for the Downtown National City PBID, Prop 218 requirements will be taken into account first. The
key provisions of Prop 218 along with a description of how the Downtown National City PBID complies with each of
these provisions is delineated below.
(Note: All section references below pertain to Article XIiI of the California Constitution):
Finding 1. From Section 4(a): "Identify all parcels which will have a special benefit conferred upon them and
upon which an assessment will be imposed"
There are 153 "identified" individual parcels within the Downtown National City PBID which will all derive some
level of special benefit from the proposed District programs and activities. These parcels are shown on the
Boundary Map within the Management District Plan and are listed as an attachment to the Plan - identified by
assessor parcel number and site address. Two benefit zones have been identified within the District which generally
includes all properties along and surrounding the National City Boulevard corridor from 2"d to 12th and the 8th
Street corridor from the freeway to A Avenue.
3
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Edward Henning & Associates
URBAN REVITALIZATION • FUNDING
Finding 3. From Section 4(a): "(Determine) the proportionate special benefit derived by each parcel in
relationship to the entirety of the. cost of public improvement(s) or the maintenance and operation
expenses. or the cost of the property related service being provided.
The proportionate special benefit cost for each parcel is listed in an attachment to the Management District Plan.
The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity
costs) were computed by dividing the individual parcel assessment by the total program costs.
Finding 4. From Section 4(a): "No assessment. shall exceed the reasonable cost of the proportional special
benefit conferred on parcel(s)."
Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which
would be possible through the Downtown National City PBID, they are also considerably less than other options
considered by groups like the Downtown National City PBID Formation Committee.
Finding 5. From Section 4(a): "Parcels. that are owned or used by any (public) agency shall not be exempt
from assessment."
Parcels within the District that are owned by public agencies (i.e. City of National City, the Community
Development Commission, Southwestern College etc) will also be assessed and at rates equivalent to private sector
owned parcels. The "fair market value" of such public properties is identical to surrounding privately owned
parcels and any increased values and benefits derived from PBID programs and services would be similar for either
public or privately owned parcels, with or without improvements. Just as the costs and effects of blight are shared
by both public and private properties, so are the rewards of clean and safe as well as district promotions and
marketing programs Since there is no compelling finding or evidence that such properties would recx.ive less direct
benefit from the proposed PBID programs and services than surrounding private parcels, the same assessment rates
would be levied.
Finding 6. From Section 4(b): "All assessments must be supported by a detailed engineer's report prepared by
a registered professional engineer certified by the State of California".
This report shall serve as the "detailed engineer's report" to support the benefit property assessments proposed to
be levied within the Downtown National City PBID.
5
13330 Buttemere Rd • Phelan CA 92371 • (76o) 868-9963 - (fax) (76o) 868-6490 mred2@earthlink.net
Edward Henning & Associates
URBAN REVITALIZATION • FUNDING
combination of parcel area, building area and street frontage, there are, in turn, corresponding amounts of Basic
Benefit Units in the PBID as shown in Step 7 herein. The target weighted revenues from each formula component
were 50% for land area, 30% for building area and 20% for street frontage. The final adjusted weights are 49% for
land, 33% for building area, 17% for street frontage and 1% for SFR and condo flat rates. Further, the targeted
weighted revenues for each Benefit Zone were 60% for Zone 1 and 40% for Zone 2. The final adjusted weights are
61 % for Zone 1 and 39% for Zone 2.
Step 3. Calculate Benefit Units for Each Property.
The number of Benefit Units for each identified benefiting parcel within the Downtown National City PBID was
computed from data extracted from City of National City, San Diego County and third party real estate data services
property and land use records. These data sources delineate current land uses, property areas and dimensions of
record for each tax parcel and are listed as an attachment to the Management District Plan_ While it is understood
that this data does not represent legal field survey measurements or detailed title cearch of recorded land subdivision
maps or building records, it does provide an acceptable basis for the purpose of calculating property based
assessments. All respective property data being used for assessment computations has been provided to each property
owner in the PBID for their review. All known or reported discrepancies or errors have been corrected.
Step 4. Determine Assessment Formula
For a District with a single Basic Benefit Unit with one Benefit Zone, the assessment formula would be the same for
each identified benefiting property as follows:
Number of Basic Benefit Units x Basic Unit Cost = PBID Assessment
The Downtown National City PBID assessment is to be based on three Basic Benefit Unit factors; land square
footage (Basic Benefit "A" Units), building area (Basic Benefit "B" Units) and linear feet of property frontage (Basic
Benefit "C" Units). It has been determined that the assessment should be based partially on parcel size, building size
and street frontage as follows:
Zone 1:
Assessment = [(No. of Benefit "A-1"Units x Basic "A-1" Unit Cost)] +
[(No. of Benefit `B-1" Units x Basic "B-1" Unit Cost)] +
[(No. of Benefit "C-1" Units x Basic "C-1" Unit Cost))
Zone 2:
Assessment =
[(No. of Benefit "A-2"Units x Basic "A-2" Unit Cost)] +
[(No. of Benefit "B-2" Units x Basic `B-2" Unit Cost)] +
[(No. of Benefit "C-2" Units x Basic "C-2" Unit Cost)]
7
13330 Buttemere Rd • Phelan CA 92371 • (760) 868-9963 • (fax) (760) 868-6490 • mred2@earthlink.net
Edward Henning & Associates
URBAN REVITALI'ZATION • FUNDING
TABLE 2
Total Adjusted Year 1 Revenue (For Special + General Benefit Programs/Activities)
Funding Source
PBID Assessments
PBID Formation Pro -rated Credit/Year ($35,000 base)
PBID Formation Pro -Rated Volunteer Credit/Year (50% base)
Annual Board/Volunteer Credit (35% base Admin)
TOTAL ADJUSTED REVENUE
Subtotal Revenue
$240,722.01
$7,000.00
S3,500.00
$14,350.00
$265,572.01
90.64%
2.64%
1.32%
5.40%
100.00%
Step 7. Calculate `Basic Unit Cost" (Special Benefits Only)
With a Year 1 budget of $240,720.01 (special benefit only), the Basic Unit Costs ("A", "B" and "C") from the
Management Plan are:
TABLE 3
Basic Unit
Land Use Description
Benefit Zone 1
Benefit Zone 2
"A" Cost
$0.0841/sf
$0.0757/sf
All except SFR and condos
"B-a" Cost
Retail, hotels, motels, visitor
$0.1886/sf
$0.1697/sf
"B-b" Cost
Office, commercial, pkg struc.
$0.1696/sf
$0.1697/sf
"B-c" Cost
Industrial, manufacturing
$0.1696/sf
$0.1697/sf
"B-d" Cost
Institutional, government etc
$0.1577/sf
$0.1578/sf
"B-e" Cost
Residential 20+ units
$0.1485/sf
$0.1485/sf
"B-P' Cost
Residential 9-19 units
$0.1485/sf
$0.1485/sf
"B-g" Cost
Residential 2-8 units
$0.1485/sf
$0.1485/sf
"B-h" Cost
Single family residential
$240 flat rate
$240 flat rate
"B-i" Cost
Residential Condo
$240 flat rate
$240 flat rate
"C" Cost
All except SFR and condos
$1.8264/LF
$1.8264/LF
Since the PBID is planned for a five year term, maximum assessments for future years (Years 2 through 5) must be
set at the inception of the PBID. A maximum annual flat rate increase of 5% may be imposed each year, subject to
approval by the PBID Board.
9
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Edward Henning & Associates
URBAN REVITALIZATION • FUNDING
EDWARD'HENNING & ASSOCIATES
Edward Henning and Associates is a multi -disciplined consulting firm offering a diverse range of community development
and funding services focusing on downtown business districts and the unique problems and opportunities associated with
center city areas.
Types of services provided
• Business Improvement District (BID & PBID) Formations, Modifications, Expansions, Updates
• Prop 218 Assessment Engineering Analyses and Reports (Licensed Engineer)
• Downtown Revitalization Plans/Redevelopment Planning and Implementation
• Establish/Administer/Field Supervision for Rehabilitation Programs and Projects
• Architectural Design Guidelines/ Sign Ordinances
Partial list of agencies and clients represented
• Town of Apple Valley
• City of Berkeley
• City of Buena Park
• City of Culver City
• City of Huntington Park
• City of Huntington Beach
• City of Los Angeles
- Gateway to LAX
- Historic Downtown Core
- Hollywood District
- Melrose/Fairfax
— Larchmont
- Los Feliz
- San Fernando Valley (6 areas)
- San Vicente
- Wilshire Center
• City of Monterey Park
• City of Napa
• City of Newport Beach
• City of Ontario (Downtown)
• City of Oxnard
• City of Pasadena
• Placer County (Tahoe City)
• City of San Francisco (Union Square)
• City of Vacaville
• City of Whittier
• City of Yucaipa
PBID Formation (Village)
BID Formation (Downtown)
BID Formation Analysis (Auto Row & Entertainment Corridor)
BID Formation (Downtown)
BID Formation (Pacific Blvd_)
BID Formation (Auto Row District)
PBID Formation & Renewal (Prop 218 Compliance)
PBID Formation (Prop 218 Compliance)
PBID Formation (Prop 218 Compliance)
PBID Formation (Prop 218 Compliance)
PBID Formation & Renewal
BID Formation
PBID Formation (Prop 218 Compliance)
Private Sector PBID Formation
Hybrid BID/PBID Formation
BID Modification (Downtown)
PBID Formation (Downtown)
BID Advising
BID Modification
PBID Formation (Downtown)
PBID Formation (Playhouse District)
Citywide Tourist Improvement District (171))
PBID Formation (Downtown)
PBID Formation (Prop 218 Compliance)
BID Formation (Downtown)
Citywide Tourist Improvement District Evaluation (TID)
BID Modification (Uptown)
PBID Formation & Renewal(Uptown)
11
1333o Buttemere Rd • Phelan CA 92371 • (76o) 868-9963 • (fax) (76o) 868-6490 • mred2@earthlink.net