HomeMy WebLinkAboutCC RESO 2007-161RESOLUTION NO.2007 — 161
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 A PUBLIC HEARING THEREON
WHEREAS, the City Council 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 California Streets and Highways Code,
said special maintenance district known and designated as the Downtown National City
Property Business Improvement District (hereinafter referred to as the "District"); and
WHEREAS, the City Council is desirous to conduct 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 the 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 the 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 Property
Business Improvement 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 Property Business Improvement District, which District the
legislative body previously declared to be the area specially benefited by said works of
improvement, and for particulars, reference is made to the boundary map as previously
approved by the legislative body, a copy of which is on file in the office of the City Clerk and
open for public inspection, and is designated by the name of this Maintenance District.
Resolution No. 2007 — 161
July 10, 2007
Page 2
REPORT OF ENGINEER
Section 4. That the "Report" of the Engineer, as preliminarily approved by the City
Council, is on file in the office of 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 HEARING
Section 5. NOTICE IS HEREBY GIVEN THAT A PUBLIC HEARING IS HEREBY
SCHEDULED IN THE REGULAR MEETING PLACE OF THE CITY COUNCIL, BEING THE
COUNCIL CHAMBERS, CITY HALL, 1243 NATIONAL CITY BOULEVARD, NATIONAL CITY,
CA, 91950, ON JULY 17, 2007, AFTER 6:00 P.M.
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.
PASSED and ADOPTED this 10'h day of July, 2007.
on Morrison, Mayor
ATTEST:
Mic ael Dalla, 'y Clerk
APPROVED AS TO FORM:
George H. Eser, III
City Attorney
RECEIVED
JU! 6 `3 (11.1
Community
Development Commission
D OWNTOWN NATIONAL CITY
PROPERTY BUSINESS IMPROVEMENT DISTRICT
MANAGEMENT DISTRICT PLAN
Formed Un der C o tareis,a►i'rl:i ` �uoi#eCl pti:"�¢6Qf1
Property Business ILnprovenient District Act of 1994
FINAL PLAN
SUBMITTED TO:
TI-IE DOWNTOWN NATIONAL CITY
�.B.I.D. STEERING COMMITTEE
THE CITY OF NATIONAL CITY
COMMUNITY DEVELOPMENT COMMISSION
EXECUTIVE DIRECTOR BEN MARTIN -EL
MAYOR NICK INZUNZA
AND CITY COUNCIL MEMBERS LUIS NATIVIDAD, RON
MORRISON, FRANCISCO PARRA AND FIDELAS UNGAR
PRESENTED B Y
MAItCO LI MANDRI, NEW CITY AMERICA INC.
APPROVED AI'R{I..30, 2004
UPDATED MAY 24, 2004.
EXHIBIT "A"
PARTT
FEXECUTIVE SUMMARY
DOWNTOWN NATIONAL CITY MANAGEMENT DISTRICT PLAN
Statement ofPurpose
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 rnoying
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 Pillage in Downtown National City, more thitigs 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 propertyowners must look at new
ways of funding special benefit services to clean up the district as well as promote the area.
_Such special benefitservices 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, coning 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 dish ict 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. AU properties, public and private, would be included
in this new assessment dish ict.
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 TOBEFUNDED: •
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 8`" 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 slate legislation, the
district shall remain in place for five years with provisions for annual CPI adjustments as
well as annual disestabiishm.ents 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 2nd and 126, as well as 8t°
Street from the freeway bridge to A Avenue, will constitute Benefit Zone 1. All other
parcels in the district wilt 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).
PART 1I
ADDRESS SERIES, GENERAL STREET BOUNDARIES
LOCATION: In general, the Downtown National City PBII) includes all private and public
parcels within the following boundaries:
Street Address Series
704-724
Street Name
A Avenue
827
81.1-817
B Avenue
C Avenue
831 — 835
D Avenue
41-43
E. 1Z`h St.
14-35
E. 3rd St.
10
E. 5`h St.
22-404
E. 8`h St.
419
E. 9'h St.
810 '925
Hoover Avenue
205 —1146
225 —1133
National City Blvd.
Roosevelt Avenue
25-38
w. 11`h St
21.
W. 12`h St.
30
W. 2"d Avenue
21 — 27
W. 3rd Avenue
21
110-200
W..71h st.
111- 225
w. 8'h st.
W 9`h St.
32-- 121
W. Plaza Blvd.
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 bfuefit, 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 PBII) 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 ex -ample, 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
`Lone 1
(core area)
Zone 2
(peripheral. area)
Boundaries
National City Boulevard from 2"d to 126 Street
81k 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
Benefit Zone 2
Frequency
Public rights of way and
sidewalk operations
PRO WSO
6 days per week
4 days per week
District Identity and
Streetscape Improvements
(DISI)
• Special Events
• Holiday Decorations
'Through
programs
Once per year
Seasonally
Through programs
None
None
Administration/Corporate
Oserations
Monday — Friday
Monday — Friday
*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 TILE P.R.O.W.S.O. PERSONNEL IS ESTIMATED TO BE S132,500.00
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 i
$ 1,000
_
Communications
-_
$ 4,000
Supplies
$ 8,000
Water
_
$ 11000
Dumpster costs
$ 6,000
Nursery Items
$ 8L000
Srnall Equipment
$ 3,000
Miscellaneous
$ 3,500
Total Estimated Annual Equipment Costs
$ 4Q,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 Ivater related costs or Dumpster removal fres,- both of which could be
negotiated with the CI)C.
"TABLE. 7 — TOTAL. FIRST YEAR DOWNTOWN NATIONAL CITY SPECIAL. BENEFIT SERVICES
BUDGET LINE ITEMS BASED UPON SUGGESTED PROGRAMS AND ALLOCATIONS
Progrant
Public Rights of Way and
Sidewalk Operations —
Personnel and Equipment for
AllBenefit Zones
District Identity and
Streetscape Improvements
Administrative/Corporate
Operations
Contingency/Reserve
First }'ear Allocation
S 173,000.00
S 14,000.00
S 41,000.00
S 12,722.01
% of Total Budget
72 %
6Vo
17 Yo
5%
Total Estimated First Year $ 240,722-01 100%
Costs of Programs
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 assessmentsdue 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 1'BID 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 he assessed on
all sides of the parcel receiving benefit
PB1D 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
Lot Size
Building Size
Linear Feet
Total in District
1,465,30i square feet
448,344 square feet
21,744 linear feet
There are 153 parcels and 96 legal owners currently in the database of the above
mentioned pi oper ty variables. "there arc about 34 square blocks in the district.
13
TABLE 10— APPORTIONMENT OFSERVICES TO PROPERTY VARIABLES
Progrdnl 10 be Funded
PROWSO:
• Maintenance Personnel
• Maintenance Personnel
■ Non -personnel, equipment
Benefit Zone
1
(S81,610)
2
($50,890)
1, 2
($ 40,500)
Apportioned to Variable
%. to all building square footage,
'A to all lot size in Benefit Zone 1
Y2 to all building square footage,
''A to all lot size in Benefit Zone 2
All linear frontage, apportioned
equally in both Benefit Zones
DISTRICT IDENTITY AND
STREETSCAPE IMPROVEMENTS:
• Special events (I per year)
• Logo creation
• Web site creation/maintenance
• Pedestrian kiosks/signage
1
( S5,000)
1, 2
($1, 000)
1, 2
($ 4,000)
1, 2
($4,000)
Building square footage"a" only
Building square footage a — c
Building square footage a — c
Building square footage a — d
ADMINISTRATION AND CORPORATE
OPERATIONS
1, 2
($ 41,000)
Apportioned equally to all lot size
in both zones
CONTINGENCY/RESERY E
1, 2
($ 12,722.01)
Apportioned equally to all lot size
in both zones
The assessment methodology annual costs are summed up in the following table:
15
TABLE 12 - DOWNTOWN NATIONAL CITY PB1D FIRST YEAR COSTS BY PROPERTY VARIABLE
PROPERTY
VARIABLE
Lot Square Footage
Building Square
Footage (ange)
Linear Frontage
Single Family Home
and Condo Annual
Fee
Total Annual
Budget
ANNUAI. COST
BENEFIT ZONE 1
$ 0.0841 per square
foot per year
ANNUAI, COST
BENEFIT7ONE 2
$0.0757 per square
foot per year
$ 0.1485-50.1886 per $0.1485-50.1697 per
square foot per year square foot per year
S1.8264 per linear S1.8264 per linear
foot per year foot -per year
5 240.00 S240.00
TOTAL GENERATED
BY VARIABLE
$118,053.09 (49%)
$80,075.68 (33%)
$39,713.24 (17%)
$2,880.00 (1%)
$240;722.01
TABLE 13 - AMOUNTS GENERATED BY DOWN"TOWN NATIONAL CITY PI31D
Property Variable.
Parcel or Lot Size
Building Square Feet
Linear Frontage
Single Family Horne
and Condo Annual Fee
Total Assessments, .First
Year — ,both Zones
Total Gross Variable,
Both Benefit Zones
1,465,301
448,344
21,744
12
Amount Generated First
Year
$118,053.09
$80 075.68
539,713.24
S2,880.00
!7
S24 0,722.01
;3
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 live 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 DURA1'IoN 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 sure 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 paidto the County of San Diego. These assessments shall provide
far the same lieu 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 thee purposes of this district.
.)1
PART Vf.1,
DISTRICT GOVERNANCE AND THE
DOWNTOWN NATIONAL CITY P.B.I.D.
MANAGEMENT CORPORATION
A few rules and regulations should be considered by the Downtown National City PBID
Management Corporation in the administration o[ 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 hi 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 me►nbers, etc.
In addition, the Management Corporation shall airn to meet the following operational
objectives for the district...
Create and manage programs that best respond to the top priorities of district property
07Vit ers;
• 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 nccess to
Board meetings, elections to the Board and Board records.
73
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Downtown National City P.B.I.D.
FIVE YEAR PROJECTION OF ASSESSMENTS
WITH 5% ANNUAL ADJUSTMENT
IP ciectec ojo5set 2005
5%
2006 5% 2007
5%I 2006
520C9
-Cic R1gn:s of Way ail
t
S;cewa < Operation.
S173,000.00
. 58.650.00
5161,650.00
S9,082.50 I 5190,732.50
59,536.63
S200,269.13
..
510,013,46 i 5210.282.58
Cs'.r.c:'C entity z .0
SI:eefscape improvemerts
51.1.000,00
j
S700.00
S14,700,00
S735.00
$15,435.00
S771.75
S16;206.75
S810.34
517.017.00
Aornili;t^a:ive,Corporate
•Operauols 541,000.00
$2,050.00 S43,050.00
52,152.50-
. $45,202.50
52,260,13
547,462.63
32.373.13
S49.635.76
• Conurxlencv:'Reserve S12.722.01
5636.10 S13,356.11
5667,91
S14,026.02
S701.30
514,727.32
S736.37 ' S15,462.68
17ot a' 5240,722.011 512,036.10 - S252,758,11
S12,637.91
5265,396.02
S13,269.80
5278,665.82 I S13,933.2.9 i 5292,509.11
Annual
Asscssrnent
,,.30 01 00 $240.00
030 02 00 $427.32.
5 030 03 00 $0.00
5 030 04 00 $0.00
5 030 05 00 $240.00
3 030 06 00 $0.00
3 030 07 00 $240.00
5 030 08 00 $1,358.46
5 030 09 00 $278..41
5 030 10 00 S339.52
5 030 11 00 $270.50
5 030 12 00 $344.51
5 030 13 00 $282.92
5 030 14 00 $500.53
5 030 17 00 $1,089.50
F.030 20 00 $4,997.45
.. J30 21 00 $3,644.29
5.030 22 00 $6,609.58
5 041 01 00 $87828
5 041 02 00 $472.48
5 041 03 00 $3,616.36
5'041 04 00 $1,063.44
5 041 05 00 $570.74
5 041 06 00 $571.49
5 041 07 00.• $694.46
5 041 08 00 $511.82
5 041 09 00 $511.82
5041 1000 $1,206,28
5042 1000 $1,080./0
5042 15 00 $3,104.82
5 042 17 00 5;3,458.95
5042 10 00 $7,001.77
J52 04 00 1694.4G
5 052 05 00 $G49.75
5 052 06 00 $471.660
5 052 14 00 $2.453.40
API.{
555 052 15 00
CITY.P..T3(1_)
F'AitCLI,S TO 3F. ASSESSED
Annual
sessmcnt
$2,361.54
555 052 17 00 $22,78`•.90
555 054 12 00 $6,377.83
555 081 09 00 $510.24
555 081 10 00 $267.23
555 081 14 00 $396.50
555 081' 15 00 $216.88
555 081 16 00 • $695.37
5550811700 $1,992.94
555 082 01 00 $1,855.29
555 082 02 00 $244.19
555 082 03 00 $527.88
555 082 04 00 $399.68
555 082 05 00 $1,137.08
555 082 06 00 $960.23
555 082 10 00 $1,533.33
555 082 1 1 00 $4,097.40
555 083-21 00 $1,846.85
555.083 22 00 $5,094.43
555 083 23 00 $2,989.50
555 083 24 00 $5,751.78
555 085 01 00 $622.48
555 085 02 00 $240.00
555 085 03 00 $240.00
555 085 04 00 $4(34.11
555 085 05 00 $2,797.35
555 085 06 00 $187.37
555 085 07 00 $4,258.90
555 113 04 00 $808.87
555 113 05 00 $792.75
555 113 08 00 $1,269.33
5551131100 $2.084.78
`_55 113 12 00 S1,569.72
555 113 13 00 $1.133.05
555 114 01 00 $240.00
555 114 02 00 $240.00
APN
5551140300
5551140400
555114 0500
555 114 06 00
555 114 07 00
555 11.4 11 00
555 114 12 00
555 114 13 00
556 101 01 00
556.101 02 00
556 101 15 00
556 101 16 00
556 104 01 00
556 104 02 00
556 104 18 00
556 210 25 00
556 210 26 00
556 210 27 00
5562120100
556 212 02 00
556 212 03 00
556 212.04 00
5562120500
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
550 331 20 00
556 231 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
$216.94
$419.14
$563.61
$754.17
$249.09
$505.91
$1,181.45
$2,439.68
$926.31
17411 13
$2,i20.06
$1.255.39
SS566.21
$715.80
$3,133 35
APPENDIX D
ENGINEER'S REPORT
27-
Edward Henning & Associate:
URBAN REVITALIZATION • FUNDINI
DISTRICT ASSESSMENT ENGEN EER' S REPORT
To Whom It May Concern:
I hereby certify to the best of my professional lmowledgc and experience that each of the identified benefiting
properties located within the proposed Downtown National City Pr(petty Business Improvement District «ill 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.
etzt:::::::p by Edward V. Henning, California Registered Professional Engineer # 26549
t
RPfi #26549 June 1, 2004
Date
Edward V. Herm
(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 XUITU of the California
Constitution (Proposition 218) to support the benefit property a_csasnicnts proposed to be levied within the
Downtown National City Property Business Improvement District (Downtown National City MID) in the City of
National City, California being establishedfor 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 h: 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 thc proposed District funded programs and improvements and does not imply that all parcels
receive assessable benefits .
13330 Rut -tent -re Rd • Phelan CA 92371 ' (760) 868-9963 • (fax) (760) 868-6490 • tnre 2 e.iirlhlink.nc:t
Edward Henning& A..s sociates
URBAN REVITALIZATION • FUND1N(
From this, the.valueof a basic benefit unit or "basic net unit cost" can be computed by dividing the total amount of
estimated net program costs by the totalnumber of benefit units. The amount of assessment for each parcel can be
computed at this time by multiplying the Net Unit Cost tittles 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 PhID.
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 21g, 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 arc in addition to requirements imposed by State and local assessment enabling laws.
These -requirements were "chaptercd" into law as Article XIIID of the California Constitution and then further
clarified by the Proposition 2I8 Omnibus Legislation in 1997 chaptercd in section 53750 ct sal of the California
Government Code.
Since Prop 218 provisions will affect alt 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 216 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 XLU of the California Constitution):
Findiue 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 wit)tin the Management District Plan and arc 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 alt properties along and surrounding the National City Fioulevard corridor from 2iid to 17th and the WI'
Street corridor from the freeway to .4 Avenue
3
33330 Buttente:e Rd • Phelan CA 92371 • (76o) 66U-9963 • (fax) (76o) 868-6g90 • rnred2(u)earthlink.net
Edward Henning, &. Associates
URBAN RFVTTALIZATION • FUNDING
Finding; 3. From Section 4(a): "(Determine) the proportionate special benefit derived by each parcel. in
relationship to the entirety of tbe_...... ...cost of public improvement(s) or the maintenance and operation
expenses....,. ..... or the cost of the property related senice 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 Downtowns National City PBID Formation Conunittee.
Fiollini . From Section 4(a): "-Parcels, that arc owned or used by any (public) agency shall not be exempt
from assessment-"
Parcels within the District that arc owned by public agencies (i.e. City of National City, the Community
1->evelopment Commission, Southwestern College etc) will also be assessed and at rates equivalent to private sector
owned parcels. The "fair maikct value" of such public properties is identical to surrounding privately owned
parcels and any increased values and benefits derived from 113ID programs and services would be similar for tither
. 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 receive less direct
benefit from the proposed PBID programs and services than surrounding private parcels, the same assessment rates
would be levied.
Finding From tertian 4(b): "All assessments wart be supported by a detailed engineer's report prepared by
a registered professional engineer certified by the State of California".
This report shalt serve as the "detailed engineer's report" to support the benefit property asse.sstncnts proposed to
be levied nithin the Downtown National City
5
13330 Buttemerc Rd • Phr.lan CA 92371 • (76o) 868-9963 • (tax.) (y6o) R68-6190 • mred2®rarthlink.uel
Edward Henning& Associates
URBAN RF.VITAL17.ATION • FUN DIN(
combination of parcel area, building area and street frontage, there are, in turn, eon -es -pointing amounts of Basic
Benefit 1Jnits in the PBID as shown in Step 7 heroin. The target weighted revenues from each formula component
were 50% for land area, 30% for building atta and 20% for street frontage.. 11 e. final adjusted weights are 49% for
land, 33% for building area, 17% for street frontage and 1% for SIR and condo flat rates. Further, the targeted
weighted revenues for each Benefit Zone were 60% for Zone l 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 cxtractexl 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
rccord for each tax parcel and are listed as an attachment to the Management I)istrict Plan. While it is understood
that this data does not represent legal field swvcy measurements or detailed title search of recorded land subdivision
reaps or building rex-ords, it does provide an acceptable basis for the purpose of calentating property based
assexsments. All respective property data being useit 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 asses rnent formula would be the same for
each identified benefiting property as follows:
Number of Basic Benefit Units x Basic Unit Cost = ?BID Assessment
The Downtown National City PBID assessment is to be based on throe 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 sfreet frontage as follows:
Zone 1:
Assessment -- [(No. of Benefit "A -]"Units x Basic "A-1" Unit Cost)1 -r
[(No. of Benefit "B-l" Units x Basic "13-1" Unit Cost)) 1
((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)) +
((N(o. of Benefit "B-2" Units x Basic "11-2" Unit Cost))
((No. of Benefit "C-2" Units x Basic "C-2" linit Cost)}
1
1.333o Itutternerc Rd . Phelan CA 92371 • (760) 868-9963 • (fax) (76u) 1368-6190 • mred2@earthtink.net
Edward Henning & Associate.
URBAN REVITALIZATION • FUNDl;lt
TABLE; 2
Total Adiusted Year 1 Revenue (For Special + General Benefit I'royrains/Activiticsi
Funding Source
PBID Assessments
PBID Formation Pro -rated Credit/Year (.535 000 base)
P810 Formation Pro -Rated Volunteer Credit/Year (50% base)
Annual Board/Volunteer Credit (35% base Admin)
TOTAL ADJUSTED REVENUE
Subtotal Revenue
S240,722.01
S 7,000.00
S3,500.00
S 14,350.00
90.64%
2.64%
I.32%
5.40%
S265 572.01 100.00%
Step 7. Calculate "Basic Unit Cost" (Special Benefits Only)
With a Year 1 budget of S240,720.01 (special benefit only), the Basic Unit Costs ("A", "B" and "C") from the
Management Plait are..
Bask Un'rt
"A" Cost
"11-a" Cost
"B-b" Cost
"B-c" Cost
"B-d" Cost
"B-e" Cost
•B-i" Cost
Cost
TABLE 3
Land Use Description
All except SFR and condos
Retail, hotels, motels, visitor
Office commercial,_pkg stnrc.
Industrial manufacturing -
Institutionaloverrmacnt etc
Residential 20+ units
Residential 9-19 units
Residential 2-8 uniLs
Benefit Zone 1
50.0841/sf
Benefit lone 2
50.0757/sf
50.1886/sf
S0.1697/sf
S0.1696/sf
$0.16961sf
50.1577/sf
S0.1485/sf
50.1485/sf
S0.1485/sf
S0.I697/sf
$0.1697/sf
S0.1578/sf
SO.1485/sf
50.1485/sf
50.1485/sf
"13-h" Cost Single family residential S240 flat rate S240 flat rate
•`B-i" Cost Residential Condo 5240 flat rate S240 flat rate
"C" Cost All except SIR aid condos SI.82641LF S1.8264/1.F
I
Since the 1'131D is planned for a five year term, maxtrnuui assessments for fume years (Years 2 tluough 5) must be
set at ilu: inception of the ?'DID. A maximum annual flat rate. increase of S` , may be imposed each year, subject to
approval by ticc ['MILD Board.
13330 Butteutere Rd • l'he!an CA 92371 • (/b0) 86B-9963 • (fax) (760) 868-649u • rnret12(5)eartlrlink.net
Edward Henning & Associates
URBAN REVITA1.17.AT1ON • FUN DINC
EDWARD HENNING & ASSOCIATES
Edward Henning and Acsrxiates is a multi -disciplined consulting firm offering a diverse range of community developme
and funding services focusing ou downtown business districts and the unique problems and opportunities associated wi
center city areas.
Types of services provided
• Business Improvement District (BID & PBfD) Formations, Modifications, Expansions, Updates
• Prop 218 Assessment Engineering Analyses and Reports (Licensed Engineer)
• Downtown Revitalization I'lans/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 luntington Beach
• City of Los Angeles
- Gateway to LAX
- Historic Downtown Core
- Hollywood District
- Melrose/Fairfax
—1 archmont
- Los Fcliz
- San Fernando Valley (6 areas)
- San Vicente .
- Wilshire Center
• City of Monterey Park
• City of Napa
• City of Newpor t 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
PAID Formation (Village)
BID Formation (Downtown)
BID Formation Analysis (Auto Row & Entertainment Corridor)
BID Formation (Downtown)
BID Formation (Pacific Blvd.)
13ID Formation (Auto Row District)
PBID Formation & Renewal (Prop 218 Compliance)
PBID Formation (Prop 218 Compliance)
PBID Founation (Prop 218 Compliance)
PBID Formation (Prop 218 Compliance)
PBID Formation & Renewal
BID Formation
PHIL) 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)
PHID Formation (Playhouse District)
Citywide Tourist Improvement District (ID)
PBID Formation (Downtown)
PBID Formation (Prop 218 Compliance)
BID Formation (Downtown)
Citywide Tourist Improvement District Evaluation (YID)
HID Modification (Uptown)
PDID Formation & Renewal(Uptown)
13330l3utternere Rd • Phelan CA 91371 • (760) 868 9963 • (fax) (760) 868-6490 • mred2@earthlink.nt
Passed and adopted by the Council of the City of National City, California, on July 18,
2006, by the following vote, to -wit:
Ayes: Councilrnembers: Inzunza, Morrison, Natividad, Parra, Zarate.
Nays: None.
Absent: None.
Abstain: None.
AUTHENTICATED BY:
By:
NICK INZUNZA
Mayor of the City of National City, California
City CIrk of the City of National City, California
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2006-139 of the City of National City, California, passed and
adopted by the Council of said City on July 18, 2006.
City Clerk of the City of National City, California
By:
Deputy
NOTICE OF A PUBLIC HEARING 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 A
PUBLIC HEARING
WHEREAS, the City Council of the City of National City, California, has previously
formed a special maintenance district pursuant to the terms of the Landscaping and
Lighting Act of 1972", being Division 15, Part 2 of the Streets and Highways Code of the
State of California the 1972 Act), said special maintenance district known and
designated as The Downtown National City property Business Improvement District
(hereinafter referred to as the "Maintenance 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.
WHEREAS, there has been presented and approved by this City the Assessment
Engineer's Report contained in the Downtown National City Property Business
Improvement District Management District Plan ("Report"), as required by the 1972 and
Article XIIID of the Constitution (Article XIIID), 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:
RECITALS
Section 1. 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
the Downtown National City Property Business Improvement District Management
District Plan, which is on file with the City Clerk and open for public inspection.
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 said works
of improvement, and for particulars, reference is made to the boundary map as
previously approved by this legislative body, a copy of which is on file in the
Office of the City Clerk and open for public inspection, and is designated by the name of
this Maintenance District.
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 HEARING
Section 5. NOTICE IS HEREBY GIVEN THAT THE CITY COUNCIL OF THE
CITY OF NATIONAL CITY WILL HOLD A PUBLIC HEARING AFTER THE HOUR OF
6:00 P.M., TUESDAY, July 17, 2007, IN THE CITY COUNCIL CHAMBERS, CIVIC
CENTER, 1243 NATIONAL CITY BOULEVARD, NATIONAL CITY, CALIFORNIA,
REGARDING: LEVY OF ASSESSMENTS FOR COSTS OF THE DOWNTOWN
NATIONAL CITY PROPERTY BUSINESS IMPROVEMENT DISTRICT.
ALL INTERESTED PERSONS SHALL BE AFORDED 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.
DATED: July 10, 2007
Michael R. Dalla, City Clerk
Passed and adopted by the Council of the City of National City, Califomia, on July 10,
2007 by the following vote, to -wit:
Ayes: Councilmembers Morrison, Parra, Ungab.
Nays: None.
Absent: Councilmembers Natividad, Zarate.
Abstain: None.
AUTHENTICATED BY: RON MORRISON
Mayor of the City of National City, California
r`k of the City of City C ational City, California
mt•
By:
Deputy
I HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
RESOLUTION NO. 2007-161 of the City of National City, California, passed and
adopted by the Council of said City on July 10, 2007.
City Clerk of the City of National City, California
By:
Deputy