HomeMy WebLinkAboutItem 2f - Management and Disbursement Agreementy
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nityof oy STAFF REPORT
Development Services Department
DATE: December 3, 2013
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
By: Jerry Schwartz, Economic Development Manager
SUBJECT: AGREEMENT BETWEEN THE CITY OF ARCADIA AND THE ARCADIA
IMPROVEMENT ASSOCIATION FOR THE REMITTANCE OF
ASSESSMENT FUNDS THAT ARE COLLECTED WITH PROPERTY TAX
PAYMENTS FROM LOS ANGELES COUNTY FOR THE DOWNTOWN
COMMUNITY BENEFIT DISTRICT
Recommended Action: Approve
SUMMARY
The property owners in downtown Arcadia approved the creation of a Community
Benefit District (CBD) in a vote that was tallied during the August 6, 2013, City Council
meeting. The CBD, which has been named the Arcadia Improvement Association
(AIA), is funded through assessments that property owners pay on their property tax bill
each year. When collected, the assessments will be sent to the City of Arcadia. The
Management and Disbursement Agreement between the City and the AIA documents
that when received, the City will forward the assessment funds to the AIA to operate the
District.
BACKGROUND
A group of downtown Arcadia business and property owners began meeting in June
2010 to consider their formation of a CBD. Establishing the CBD took fifteen months
and involved ten (10) meetings of business and property owners that made important
decisions and provided direction to the consultant, New City America. The process
culminated in the final vote in favor of establishing the District on August 6, 2013, and
the City Council's approval of Resolution No. 6988 formally authorizing the CBD.
Once the District was approved, City staff and New City America worked with the staff
at the Los Angeles County Assessor's Office to make sure that the assessments would
be included on the equalized tax rolls for 2013 -14. The first year assessment will total
$117,515, which will be collected as part of the two annual property tax payments made
Management and Disbursement Agreement
December 3, 2013
Page 2 of 3
by property owners in Los Angeles County. The assessments in the CBD are based on
lot size, linear frontage, and building square footage.
All property owners in the CBD pay an assessment, even if they are exempt from
paying property taxes. This means that the City of Arcadia and the Metro Gold Line are
each assessed. In the case of the City, the first year assessment of $4,606 was
included in the approved FY 2013 -14 City budget. Since the Metro Gold Line does not
receive a property tax bill, they will have to be invoiced for their assessment amount.
The AIA will likely receive most of its assessment funds in December and April when the
City receives its largest property tax payments from Los Angeles County.
DISCUSSION
Since the formal adoption of the Community Benefit District, the property and business
owners have formed an interim executive board and begun the work of forming a
management corporation to manage the funds and implement the work of the CBD as
outlined in the Management Plan. The interim board has hired New City America as a
consultant to assist with the formation process. New City America's services include
filing formal incorporation documents, developing by -laws, recommending committees
for the board that will oversee key aspects of the Management Plan, preparing a
request for proposal to manage the District and the developing a Management and
Disbursement Agreement with the City of Arcadia.
The Management and Disbursement Agreement codifies procedures for the distribution
of funds by the City to the District's management corporation, including payment for
assessments received from property owners and the invoicing of organizations, such as
the Metro Gold Line, that is exempt from property taxes.
The Agreement also includes the responsibilities of the AIA, including,
• Implementing the Management Plan,
• Competitively bidding all contracts over $15,000,
• Following the Brown Act in regard to all AIA meetings,
• Submission of an Annual Work Plan and Budget on or before November 30 for
each fiscal year, and
• The mailing of a statement of activities /programs funded by District revenues and
the cost of each activity or program to each property owner in the District by
December 31 of each year.
At the November 14 meeting, the interim board approved the Management and
Disbursement Agreement and authorized New City America to finalize the document
with the City. The Agreement has been reviewed and approved as to form and content
by the City Attorney.
Management and Disbursement Agreement
December 3, 2013
Page 3 of 3
ENVIRONMENTAL REVIEW
The Management and Disbursement Agreement with the Arcadia Improvement
Association is exempt from the California Environmental Quality Act under Section
15061(b)(3) because it is considered to be "not a project ".
FISCAL IMPACT
The approval of the Management and Disbursement Agreement will not have any direct
cost on the City. The staff time necessary to review records and draft checks that will
be forwarded to the AIA is nominal.
RECOMMENDATION
It is recommended that the City Council authorize the City Manager to execute a
Management and Disbursement Agreement between the City of Arcadia and the
Arcadia Improvement Association for the remittance of assessment funds that are
collected with property tax payments from Los Angeles County for the Downtown
Community Benefit District.
Approved.
Dominic LazzareW
City Manager
Attachment: Management and Disbursement Agreement
MANAGEMENT AND DISBURSEMENT AGREEMENT
by and between
CITY OF ARCADIA,
a California Chartered City and Municipal Corporation,
and
ARCADIA IMPROVEMENT ASSOCIATION,
a California Non - Profit Public Benefit Corporation
Formed Under Ordinance No. 2306
of Article 1 of the Arcadia Municipal Code,
Chapter 14 on Community Benefit Districts
December 12013
This Management and Disbursement Agreement ( "Agreement ") between the City of
Arcadia, a California Chartered City and municipal corporation (the "City ") and the Arcadia
Improvement Association, a California Non - Profit Public Benefit Corporation (the "AIA ") is
entered into this day of 2013 ( "Effective Date "). City and AIA shall
respectively be referred to as the "Party" or collectively as the "Parties."
RECITALS
WHEREAS, on August 6, 2013, the City Council adopted Resolution No. 6988,
approving the creation of the Downtown Arcadia Community Benefit District of 2013
( "District ") pursuant to City of Arcadia Ordinance No. 2306 codified in Article 1 Chapter
14of the Arcadia Municipal Code; and
WHEREAS, the Management District Plan for the District ( "District Plan ") and
Engineer's Report that provide the legal basis for the District describe and set forth the
intended particular and special benefit the property owners in the District will receive from
new, increased or improved security, sidewalk maintenance, beautification, promotional and
marketing activities and improvements to be provided by AIA through implementation of the
District Plan (the "District Plan Improvements "); and
WHEREAS, pursuant to a ballot held on August 6, 2013, the District received more
than 50% weighted approval to levy and collect the property tax assessments for use and
administration pursuant to the District Plan; and
WHEREAS, the District Plan Improvements will be funded through an annual levy of
special assessments upon real property within the District (the "Assessments "), commencing
on December 15, 2013, and continuing for fifteen (15) consecutive years through December
31,2028-land
WHEREAS, AIA is responsible for implementing the District Plan; for creating a
District budget and policies to comply with the District Plan; for preparing and filing quarterly
and annual reports with City reflecting compliance with the District Plan; and for overseeing
the day -to -day implementation of the District Plan Improvements; and
WHEREAS, the Parties desire to enter into this Agreement in order to coordinate their
respective activities necessary for the successful operation, administration and
implementation of the District Plan and District Plan Improvements.
NOW THEREFORE, the Parties to this Agreement do hereby covenant and agree as
follows..
1. Scope of Disbursement Duties. AIA agrees to promptly perform all duties specified in the
District Plan, attached hereto as Exhibit A and on file with the City Clerk. AIA and the
City shall each respectively designate an individual or individuals who shall be
responsible for communications with each other for the duration of this Agreement.
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Nothing in this Agreement shall be construed to require AIA to perform as specified in the
District Plan if funds are not available to perform those duties due to lack of funding from
Assessments or other revenues from operation of the District (the "District Revenues ").
AIA shall notify City in writing as soon as AIA is aware that District Revenues are
insufficient or not available to perform duties specified in the District Plan.
2. Method of Performing Disbursement Duties. The method, details and means of
performing the disbursement of District Revenues shall be as described in the District
Plan attached hereto as Exhibit A, and as set forth herein (the "Disbursement Duties ").
In the event of any conflict between the District Plan and this Agreement, disbursement of
District Revenues shall be for the special benefits described in the District Plan.
3. District Term. AIA's Disbursement Duties shall begin on December 15, 2013, or as soon
as the first year Assessments have been transferred to the AIA, whichever occurs later.
AIA shall complete their Disbursement Duties by December 31, 2028, subject to the
annual review and termination provisions in section 13 of this Agreement.
4. AIA Responsibilities.
4.1. Program Implementation and Operation. AIA shall be fully responsible for developing,
implementing, directing and operating the District Plan. AIA assumes all
responsibility for completing activities required to implement the District Plan and its
programs.
4.2. Competitive Bidding. AIA shall competitively bid all contracts over $15,000 and shall
keep and provide copies of all bids submitted for review to any affected property
owner or the City promptly upon request. The lowest bidder will not necessarily
receive the contract that is bid. The quality, performance and experience of bidding
contractor shall be taken into consideration prior to the awarding of that contract. The
maximum contract term shall be three years for competitively bid projects.
4.3. Separate Bank Account for District Revenues. All District Revenues received by AIA
pursuant to this Agreement shall be held in a bank account separate and apart from
any other funds managed or administered by AIA, and shall not to be co- mingled with
any other funds (the "Account "). Copies of all AIA District Revenue Account
statements shall be made available to City upon request. AIA shall provide City with
evidence of the establishment of the required District Revenue Account prior to the
City transferring any Assessments to the AIA.
4.4. Use of Downtown Arcadia Community Benefit District or AIA Name. The name
"Downtown Arcadia Community Benefit District" or the "Arcadia Improvement
Association" as its management corporation, or an appropriate abbreviation, shall
appear on all marketing and promotional materials funded in part or in whole by
District Revenues.
4.5. Reporting to Property Owners within the District. A statement of activities /programs
funded by District Revenues, and the cost of each such activity or program, shall be
mailed to every property owner within the District by December 31 of each year
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during the Term (the "Activity Statement "). A copy of the Activity Statement and a list
of property owner names and addresses shall be provided to City no later than
December 15 of each year during the Term.
4.6. Open Meetings Laws. AIA shall comply with the open meeting requirements of the
Ralph M. Brown Act with regard to its performance of this Agreement.
4.7. Program and Budget Reports.
4.7.1 Reports, Work Plans and Budgets. On or before April 30, 2013 and quarterly
thereafter, the AIA shall submit quarterly reports to City. Subject to approval by
City, copies of Board minutes and meeting notes will suffice in lieu of the
quarterly report. In addition, AIA shall submit an Annual Work Plan and
Budget to City on or before November 30 for each fiscal year for which
Assessments are to be levied and collected (the "Annual Report and Budget ").
The Annual Work Plan and Budget shall be prepared in accordance with
Section 36622 of the California Streets and Highways Code, and Article XIII.D
of the California Constitution. If changes to the Annual Work Plan and /or
Budget are requested that would require a public hearing and /or a public
meeting pursuant to state or City's law, Community Benefit District Ordinance,
or which would affect the Assessment database and resulting budget of the
upcoming fiscal year, then such modification shall be submitted prior to May 1
of each year. City must report any changes to the database or boundaries to
the County in by July 15 of each year during the Term. The Budget for any year
shall not be effective until approved by City.
4.7.2 Budget. Each program or activity specified in the District Plan and succeeding
programs and activities shall be implemented within the approved budget
amounts in accordance with the District Plan and this Agreement. Any
obligations or expenditures not specifically budgeted shall not be paid from
District Revenues.
4.7.3 City's General Fund Not Liable. Neither City's General Fund, nor any other
City fund, revenue source, or any other City monies, except the actual
Assessment for property City owns in the District under the conditions of
Ordinance No. 2306 codified in Article 1 Chapter 14 of the Arcadia Municipal
Code, shall be collected from the County and transferred to AIA. City shall only
be responsible for payment of its property assessment as a property owner in
the District. The Parties acknowledge and agree that any unpaid Assessments
in the District are not a debt of City, nor a legal or equitable pledge, charge, lien
or encumbrance upon any City property or upon City income, receipts or
revenues.
4.8. Financial Statements.
4.8.1. Annually in conjunction with the Annual Report and Budget, AIA shall prepare
financial statements that document the disposition, commitment and line item
expenditures of all District Revenues received during the previous calendar
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year (the "Financial Statement "). The Financial Statement shall be prepared by
a Certified Public Accounting (CPA) acceptable to City. City may request a full
audit of the Financial Statement, if in its sole and absolute discretion, City
believes such an audit is necessary.
4.8.2. City's review of the Financial Statement shall be conducted in accordance with
Government Auditing Standards (2003 and subsequent revisions) prescribed
by the Comptroller General of the United States. All other audits shall be
prepared in accordance with Generally Accepted Accounting Principles in the
United States of America.
4.8.3. Any District Revenues necessary to cover AIA's portion of the Financial
Statement shall be set aside in the Budget.
4.8.4. The Financial Statement shall be delivered to City at the same time as the
Annual Report and Budget or within 90 days of the completion of each fiscal
year of the AIA.
4.9 Program Coordination. AIA shall complete its Disbursement Duties and shall
cooperate with City in the implementation of the District Plan, including program
development and coordination of District activities with City functions.
4.10 Assessment Records. AIA shall maintain a complete database for each parcel
assessed within the District, containing the following information:
4.10.1 Assessor's Parcel Number
4.10.2 Street Address
4.10.3 Name and Address of Owner(s) of Record
4.10.4 Amount of the Assessment Levied
4.10.5 Proportionate Financial Obligation Imposed, compared to District
4.10.6 Assessment Calculations, including all variables used
AIA agrees to maintain such information and make it available to property owners
within the District during regular business hours.
4.11 Annual Assessment Preparation. By June 1 of each operating year, AIA shall
provide City with Assessment data for the subsequent tax year (July 1 — June 30), in
a format prescribed by City. The Assessment data shall include all of the
information required in "Assessment Records," paragraph 4.10 herein above.
4.12 Liaison with Community. AIA shall maintain on -going communication and
coordination with District property owners, residents and property owners, which
shall include:
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4.12.1 Annual Meeting. At its own cost and expense, AIA shall organize and
conduct, at a minimum, one annual public meeting to be noticed in writing
mailed to all record owners of property in the District. This meeting shall be
conducted at a location convenient to the District. A City representative shall
be invited by AIA and may attend as a member of the panel to provide
information and assistance.
4.12.2 Other Events. Such other events and activities involving District members
that encourage attainment of the District goals and objectives.
4.12.3 Assessment Notification. AIA shall notify all property owners in writing when
an increase in Assessments is proposed.
4.12.4 Cost and Expense Records. AIA shall maintain full and complete records of
activities performed under this Agreement. Such records shall be open to
inspection by City, and shall be maintained for a minimum of four years after
the termination or expiration of this Agreement.
4.12.5 Payment of Taxes. AIA is responsible for paying, when due, all taxes,
including income taxes, if any, including estimated taxes, incurred as a result
of activities completed under this Agreement. On requestby City, AIA shall
provide City with proof of timely payment of any and all taxes. AIA agrees to
indemnify and defend City, with counsel acceptable to the City for any
claims, costs, losses, fees, penalties, interest or damages suffered by City
resulting from AIA's failure to comply with this provision.
4.12.6 Payment of Expenses. AIA will be responsible for all expenses incurred in
performing its Disbursement Duties under this Agreement.
4.12.7 Tools, Materials and Equipment. AIA will supply all tools, materials and
equipment required, if any, to perform the Disbursement Duties.
4.12.8 Compensation. AIA agrees and understands that it shall receive no
compensation for any of the Disbursement Duties or other obligations set
forth in this Agreement.
5 City Responsibilities.
5.1 Administration. This Agreement shall be administered by the City Manager or his /her
designee (referred to herein as "City ") on behalf of City. City agrees to:
5.1.1 Coordinate the collection of the annual Assessment through an agreement
with the County of Los Angeles; ensure the billing of those public or tax - exempt
entities not billed through the County of Los Angeles property tax billing
procedures; and monitor the payment process to obtain timely payment of
Assessments by public entities and other tax - exempt District property owners;
M
5.1.2 Provide timely District property tax roll information to the County of Los
Angeles Auditor - Controller in order to include the annual Assessment amounts
on the County's property tax bills;
5.1.3 Provide general information to AIA, the assessed property owners, and the
public;
5.1.4 Direct the disbursement of collected Assessments to AIA in accordance with
this Agreement and the approved Annual Report and Budget; and
5.1.5 Perform other related tasks, as agreed to by the City.
5.2 Discrepancies and Assessment Disputes. City may assist with the resolution of any
discrepancies in individual Assessment amounts or calculations, and has the authority
to:
5.2.1 Conduct reviews and or audits of any Assessment related data; verify
Assessment data as compiled by any consultant, sub - consultant, or other party
hired by AIA; perform field or on -site inspections to verify the accuracy of
Assessment data or investigate any Property owner claims concerning the
accuracy of any Assessment data.
5.2.2 Recalculate the Assessment amount due and request the Los Angeles County
Auditor - Controller (the "CAC ") to make the requested adjustments; provided
however, that if the CAC does not honor City's request to recalculate the
Assessment, the City shall not be liable in any way for any Assessments other
than its own, and shall not be obligated to pursue any action against the CAC
to obtain any adjustment or recalculation.
5.3 Disbursements. The annual District Assessments will be collected through the County
property tax collection procedures and will be transmitted to City pursuant to
agreements between City and the County. Except for the costs defined in Paragraph
5.3.4, below, City shall disburse the collected Assessments to AIA pursuant to the
terms and conditions of this Agreement. City shall not be obligated to disburse
Assessments which have not been collected. Upon request by AIA and with approval
of City subject to compliance with this Agreement, any Assessments received by City
that are in excess of the annual Assessment (penalties, late- payments, etc.) shall be
disbursed to the AIA upon receipt.
5.3.1 Assessment Disbursement Schedule. Contingent upon receipt of District
Assessment funds from the County of Los Angeles and contingent upon AIA's
compliance with this Agreement and the District Plan, City shall disburse to the
AIA the Assessments received from the County on or about the following dates
and in accordance with the following percentages. Said disbursements shall
include an accounting of the property Assessments paid per parcel. On or about:
December 18 Fifty percent (50 %) of annual Assessment received by
City from the County, or the full amount transferred by
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the County to City in the December installment,
whichever is greater. Plus 50% of the annual
Assessments received and collected by City for tax -
exempt and publicly owned parcels within the District.
April 30 Fifty per cent (50 %) of the annual Assessment received
from the County, or the full amount transferred by the
County to City in the April installment, whichever is
greater. Plus 50% of the annual Assessments received
and collected by City for tax - exempt and publicly owned
parcels within the District.
June 20 Any additional Assessment amounts transferred to City
that were collected during the fiscal year (terminating on
June 30) and transferred to the City, shall be forwarded
to AIA based on the schedule set forth in 5.3.1 herein
above. Said additional amounts may include any
delinquency or penalty amounts from the late or non-
payment of Assessments by any property owner in the
District.
5ASubseguent Adjustments. If there is an adjustment in the Disbursement due to
changes in receipts of the District, such Disbursement may be adjusted in the
following year. City shall not be responsible for delays in payment due to delays in
transmittal by the County.
5.5City Review of Financial Summary. City reserves the right at any time to request
a current financial summary of all District Revenues committed and /or spent
during the previous quarter(s) from AIA. AIA shall submit such financial
summary to City within thirty (30) business days of City's request therefor. City
reserves the right to review the summary and to refuse to disburse any further
installments if it is not satisfied with the statement or with regard to the propriety
of AIA's commitment or expenditure during the previous quarter(s).
6 Costs and Expenses. The Parties acknowledge that the County of Los Angeles will
deduct from the funds collected on behalf of the District the County's administrative costs
for the collection and distribution of Assessments to City (the "County Administrative
Costs ").
7 Ownership of Documents. The designs, plans, reports, files, invoices, investigation
materials, and documents prepared or acquired by or for AIA pursuant to this Agreement
shall be the joint property of City and AIA. AIA agrees to exercise diligence in providing
for the secure storage of all such materials and to provide copies for official City records
on request from City.
8 Independent Contractor. It is expressly agreed that in the performance of this Agreement,
AIA is an independent contractor and is not an employee of City. AIA retains the right to
control and supervise its activities, and the employment, direction, compensation and
discharge of all persons assisting AIA in the performance of this Agreement. AIA shall be
solely responsible for all matters relating to the payment of its employees, including
compliance with social security, withholding and all other regulations governing such
matters, and shall be solely responsible for AIA's own acts and those of AIA's
subordinates and employees.
9 AIA Not Agent of City. Neither AIA nor any of its employees, agents, representatives or
subcontractors are or shall be deemed to be agents of City or public officials for any
purpose, including fulfillment of AIA's obligations pursuant to this Agreement.
10 AIA's Qualifications. AIA represents that it has the qualifications and skills necessary to
perform the Disbursement Duties under this Agreement in a competent and professional
manner without the advice or direction of City. Failure to perform all of the Disbursement
Duties constitutes a material breach of this Agreement and is cause for termination of this
Agreement.
11. Non - Exclusive Relationship. AIA may perform services for, and contract with other
clients, persons or companies in its sole discretion so long as such services and contracts
do not breach this Agreement.
Compliance with Arcadia Municipal Code Chapter
12. AIA shall comply with all requirements of the City Ordinance No. 2306 codified in
Article 1 Chapter 14 of the Arcadia Municipal Code, as it may be amended from
time to time.
12.1 Term and Termination. This Agreement shall become effective on the Effective
Date and terminate on December 31, 2028 (the "Term "), unless it is otherwise
extended by mutual written agreement of the Parties in compliance with
Ordinance No. 2306, and
12.2 Early Termination. Either Party may terminate this Agreement at any time
upon giving the other Party sixty (60) days written notice.
12.3 Termination for Default. If the either Party defaults in its performance of any of
The terms and /or provisions pursuant to this Agreement, then the non -
defaulting Party shall provide written notice to the defaulting Party describing
the default and demanding a cure ( "Default Notice "). If such default is not
cured within thirty (30) days (or if the default is not susceptible to cure within
said thirty -day period) after the Default Notice is mailed or delivered, then the
non - defaulting Party may terminate this Agreement. To the extent the alleged
default concerns or relates to the use or expenditures of District Revenues, AIA
shall hold all unencumbered District Revenues in an escrow account until the
default is cured.
13. Inspection of Books and Records. During the Term, and for a period of four (4)
years after the Term, or two (2) years after the closure of any disputed matter,
whichever occurs later (the "Audit Period "), AIA shall maintain financial and
operational records related to this Agreement, which include, but are not limited to
the Annual Financial Statements, the Annual Reports and Budgets and any audits
(the "Books and Records "). At the request of City, AIA shall make all Books and
Records open to inspection by City, or its designee during normal business hours.
14. Non - Discrimination in Employment. AIA certifies and agrees that it shall not
discriminate against any employee or person who is subject to this Agreement
because of race, color, religion, religious belief, national origin, ancestry, citizenship,
age, sex, sexual orientation, marital status, pregnancy, parenthood, medical
condition, or physical or mental disability. Evidence of discrimination shall be
sufficient cause for termination of this Agreement.
15. Public Liability and Property Damage Insurance. AIA shall assume all responsibility
for damages to property and injuries to persons, including accidental death, which
may arise out of or may be caused by AIA's performance of this Agreement, by its
subcontractors or by anyone AIA directly or indirectly employed, and whether such
damage or injury may accrue, or may be discovered, before or after termination of
this Agreement. At its own expense, AIA shall obtain, pay for and maintain during
the life of the Agreement an "occurrence" policy for Commercial General Liability
(including Contractual Liability) and for Automobile Liability which shall protect it and
City from claims for injuries and damages. AIA shall provide written proof to City
that it has such policies fully paid for and in place within 30 days of the transfer of
the first instalment of assessment funds from City in December 2013. The policy
shall name the "City of Arcadia and its officers, agents and employees" as additional
insureds under the policy in the following amounts:
15.1 COMMERCIAL GENERAL LIABILITY INSURANCE in an amount not less
than Two Million Dollars ($2,000,000) per occurrence for personal injuries,
including accidental death, to any one person; property damage insurance in
an amount not less than Two Million Dollars ($2,000,000) and subject to the
above limits and combined single limit of insurance in an amount not less
than Three Million Dollars ($3,000,000); and
15.2 AUTOMOBILE LIABILITY INSURANCE endorsed for all vehicles (whether
rented, leased, hired, scheduled, owned or non - owned), in an amount not
less than One Million Dollars ($1,000,000) per occurrence for personal
injuries, including accidental death, to any one person; property damage
insurance in an amount not less than One Million Dollars ($1,000,000)
and subject to the above limits and combined single limit of insurance in
an amount not less than One Million Dollars ($1,000,000).
15.3 At all times, the insurance company issuing said policy shall be an "admitted"
insurer in the State of California; shall be domiciled within, and organized
under the laws of, a state of the United States; and shall carry an A.M. Best
& Company minimum rating of AA-VII.
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15.4 All policies shall contain a " Severability of Interest" clause and a "Primary
Coverage" clause for any loss arising out of or caused by AIA's performance
of the Agreement. In addition, the policies shall contain a statement of
obligation on the insurance carrier's part to notify City, by registered mail, at
least thirty (30) days in advance of any policy cancellation, termination or
reduction in the amount of coverage.
15.5 Within thirty (30) days of the first transfer of funds from City, AIA shall deliver
to City a "certificate of insurance" and an "additional insured endorsement ",
both documents countersigned by the insurance carrier or its authorized
representative, on forms satisfactory to the City Attorney, which set forth the
above provisions.
15.6 The countersigned certificate, along with the additional insured endorsement,
shall state: "The City of Arcadia and its officers, agents and employees are
named as additional insureds under this policy. This insurance is primary to
the coverage of the City of Arcadia. Neither the City nor any of its insurers
shall be required to contribute to any loss. This policy contains a severability
of interest clause. The issuing company shall mail thirty (30) days advance
notice to City of any policy cancellation, termination or reduction in the
amount of coverage."
15.7 Additionally, the certificate of insurance shall state if any claim has been paid
or is currently pending under the policy, and if so, the amount of the claim(s)
and the amount of liability limits as lowered by the paid or pending claim(s).
Any deductibles or self- insured retentions shall be set forth on the
certificate and shall be subject to City's review and approval.
15.8 Workers' Compensation Insurance. AIA understands and agrees that all
persons furnishing services to AIA under this Agreement are, for the purpose
of workers' compensation liability, employees solely of AIA and not of City.
AIA shall bear the sole responsibility and liability for furnishing workers'
compensation benefits to its employees, or anyone it directly or indirectly
employs, for injuries arising out of or connected with services performed on
behalf of AIA.
15.9 At its own expense, AIA shall obtain, pay for, and maintain for the duration of
the Agreement, complete workers' compensation insurance. AIA shall
provide proof of workers' compensation coverage by delivering to City either
an insurance certificate or a certificate of consent to self- insure. City shall
not be responsible for any claims at law or in equity caused by AIA's failure
to comply with this paragraph. All workers' compensation insurance policies
shall bear an endorsement, or shall attach a rider, which provides that the
insurer will notify City, by registered mail, at least thirty (30) days in advance
of the policy's expiration, termination or cancellation.
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15.10AIA's failure to obtain, pay for, or maintain any required insurance shall
constitute a material breach upon which City may immediately terminate or
suspend this Agreement. In the event of any termination or suspension, City
may use the services of another consultant or consultants, without City
incurring any liability to AIA. At its sole discretion, City may obtain or renew
AIA's insurance, and City may pay all or part of the premiums. Upon
demand, AIA shall pay City all monies paid by City to obtain or renew the
insurance. City may offset the cost of the premium against any monies due
AIA from City.
16. Laws. AIA shall comply with all laws, statutes, ordinances and rules of all applicable
governmental authorities unless City is contesting or has affirmed its intention to
contest any such law, statute, ordinance, rule, regulation, order, or requirements
pursuant thereto.
17. Indemnification. Throughout the term of this Agreement, as and from the date
hereof, AIA agrees to defend, indemnify and hold harmless to the maximum extent
permitted by law, City and its officers, agents and employees ( "Indemnitees "), from
and against any and all liabilities, suits, proceedings, judgments, claims, charges,
damages, liens, causes of action, losses or injuries (whether in contract or in tort,
including personal injury, accidental death or property damage, and regardless of
whether the allegations are false, fraudulent or groundless), costs and expenses
(including without limitation attorney's fees, litigation, arbitration, mediation, appeal
expenses) which in whole or in part arise out of or are connected with acts or
omissions of, performance of, or breach of this Agreement by AIA or AIA's
independent contractors, agents, employees or delegates. In the event of any such
claim, demand, proceeding or lawsuit against the Indemnitees, AIA agrees to
assume the immediate defense of Indemnitees by hiring and paying for legal
counsel acceptable to City. AIA's obligations under this paragraph shall apply,
regardless of any sole, active and /or passive negligence of City, regardless of any
willful misconduct of Indemnitees, and regardless of the degree of AIA's or
Indemnitee's fault in causing the harm that results in the claim, demand, proceeding
or lawsuit.
18. Political Prohibition. Subject to applicable State and Federal laws, monies paid
pursuant to this Agreement shall not be used for political purposes, sponsoring or
conducting candidate's meetings, engaging in voter registration activity, or for
publicity or propaganda purposes designed to support or defeat legislation
pending before federal, state or local government.
19. Conflict of Interest
19.1 AIA certifies that no member of, or delegate to the Congress of the United
States shall be permitted to share or take part in this Agreement or in any
benefit arising therefrom.
-12-
19.2 AIA certifies that no member, officer, or employee of the City who exercises
any functions or responsibilities with respect to the programs or projects
covered by this Agreement, shall have any interest, direct or indirect in this
Agreement, or in its proceeds during his /her tenure or for one year thereafter.
19.3 AIA shall immediately notify City of any real or possible conflict of interest
between work performed for City and for other clients served by AIA.
19.4 AIA warrants and represents, to the best of its present knowledge, that no
employee of City who has been involved in the making of this Agreement, or
who is a member of a City board or commission which has been involved in
the making of this Agreement whether in an advisory or decision - making
capacity, has or will receive a direct or indirect financial interest in this
Agreement in violation of the rules contained in California Government Code
Section 1090 et sec., pertaining to conflicts of interest in public contracting.
AIA shall exercise due diligence to ensure that no such employee will receive
such an interest.
19.5 AIA further warrants and represents, to the best of its present knowledge and
excepting any written disclosures as to these matters already made by AIA to
City, that no employee of City who has participated in decision - making
concerning this Agreement or has used his or her official position to influence
decisions regarding this Agreement, has an economic interest in AIA or this
Agreement. For purposes of this paragraph, an official is deemed to have
an "economic interest" in any (a) for - profit business entity in which the official
has a direct or indirect investment worth $2,000 or more, (b) any real
property in which the official has a direct or indirect interest worth $2,000 or
more, (c) any for - profit business entity in which the official is a director,
officer, partner, trustee, employee or manager, or (d) any source of income
or donors of gifts to the official (including nonprofit entities) if the income or
value of the gift totaled more than $500 the previous year. AIA agrees to
promptly disclose to City in writing any information it may receive concerning
any such potential conflict of interest. AIA's attention is directed to the conflict
of interest rules applicable to governmental decision - making contained in the
Political Reform Act (California Government Code Section 87100 et sec.)
and its implementing regulations (California Code of Regulations, Title 2,
Section 18700 et seq.).
19.6 AIA shall incorporate or cause to be incorporated into all subcontracts for
work to be performed under this Agreement a provision governing conflict of
interest in substantially the same form set forth herein.
20. No Waiver. Nothing herein is intended to waive any applicable federal, state or local
conflict of interest law or regulation.
21. Remedies and Sanctions. In addition to the rights and remedies otherwise available
to City under this Agreement and under federal, state and local law, AIA understands
and agrees that, if City reasonably determines that AIA has failed to make a good
-13-
faith effort to avoid an improper conflict of interest situation or is responsible for the
conflict situation, City may (1) suspend payments under this Agreement, (2)
terminate this Agreement, (3) require reimbursement by AIA to the City of any
amounts disbursed under this Agreement. In addition, City may suspend payments
or terminate this Agreement whether or not AIA is responsible for the conflict of
interest situation.
22. Assignment. AIA shall not assign or otherwise transfer any rights, duties, obligations or
interest in this Agreement or arising hereunder to any person, persons, consultant or
sub - consultant, entity or entities whatsoever without the prior written consent of City
and any attempt to assign or transfer without such prior written consent shall be void.
Consent to any single assignment or transfer shall not constitute consent to any further
assignment or transfer.
23. Time of the Essence. Time is of the essence in the performance of this Agreement.
24. Commencement, Completion and Close Out. It shall be the responsibility of AIA to
coordinate and schedule the work to be performed so that commencement and
completion take place in accordance with the provisions of this Agreement. Any time
extension granted to AIA to enable AIA to complete the work must be in writing and
shall not constitute a waiver of rights City may have under this Agreement. Should
AIA not complete the work by the scheduled date or by an extended date, City shall be
released from all of its obligations under this Agreement.
25. Governing Law. This Agreement shall be governed by the laws of the State of
California.
26. Notices. If either Party shall desire or be required to give notice to the other, such
notice shall be given in writing, by prepaid U.S. certified or registered postage,
addressed to recipient as follows:
City:
..
City of Arcadia
240 West Huntington Drive
Arcadia, CA 91007
Attn: City Manager
Matt McSweeny
145 E. Huntington Drive
Arcadia, CA
Attn: Mr. Matt McSweeney, Interim President
27. Entire Agreement of the Parties. This Agreement supersedes any and all
agreements, either oral or written, between the Parties with respect to the rendering of
disbursement duties by AIA for City with regard to the Downtown Arcadia Community
Benefit District of 2013 and contains all of the representations, covenants and
agreements between the Parties with respect to the rendering of those duties. Each
Party to this Agreement acknowledges that no representations, inducements,
-14-
promises or agreements, orally or otherwise, have been made by any Party, or
anyone acting on behalf of any Parties, which are not contained in this Agreement,
and that no other agreement, statement or promise not contained in this Agreement
will be valid or binding.
28. Modification. Any alteration, change or modification of or to this Agreement shall not
be effective unless made in writing in each instance signed on behalf of each Party.
29. Severability. If any term, provision, or covenant of this Agreement, or its application to
any Party or circumstances shall be held by a court of competent jurisdiction, to be to
any extent, invalid, void or unenforceable, the remaining provisions will continue in full
force and effect without being impaired or invalidated in any way.
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the
respective dates set forth below.
CITY: AIA:
City of Arcadia, Arcadia Improvement Association, dba:
a Municipal Corporation Downtown Arcadia Association,
a California non - profit corporation
Dominic Lazzaretto Matt McSweeny, President, AIA
City Manager
Date Date
ATTEST:
City Clerk
APPROVED AS TO FORM:
in
Stephen P. Deitsch
City Attorney
- 15 -
Exhibits
Exhibit A: Downtown Arcadia Community Benefit District Management Plan
Exhibit B: City of Arcadia Business Improvement Management District Ordinance
No. 2306 of Article 1 of the Arcadia Municipal Code, Chapter 14 on
Community Benefit Districts.
NIW*11 - TY
CC
r kFc,•„
THE DOWNTOWN ARCADIA
COMMUNITY BENEFIT DISTRICT
2013
MANAGEMENT DISTRICT PLAN
Arcadia, California
Formed Under Ordinance # 2306 of Article 1 of the Arcadia Municipal Code,
Chapter 14 on Community Benefit Districts
Final Plan —April 1st, 2013
Prepared by:
New City America, Inc.
and the
Downtown Arcadia CBD Steering Committee
710 W. Ivy Street a San Diego, CA 92101 F 888 -356 -2726 ■ 619 -233 -5009 a Fax 619- 239 -7105
mail @newcityamerica.com • www.newcityamerica.com E Facebook: New City America, Inc.
1
Table of Contents
Section Number
1. Management District Plan Summary
2. Downtown Arcadia CBD Boundaries
3. District Improvement and Activity Plan
4. Assessment Methodology
5. District Rules, Regulations and Governance
6. Implementation Timetable
7. Assessment Roll of Properties Included
Attachment:
A. Engineer's Report
2
3
8
10
16
26
26
27
Section 1
Management District Plan Summary
The name of this Community Benefit District is the Downtown Arcadia Community Benefit
District (the "CBD "). The District is being formed pursuant to Ordinance 2306, Article 1, Chapter
14 of the Arcadia Municipal Code as hereinafter referred to as the Ordinance.
Developed by the Arcadia Downtown Business Association and the Downtown Arcadia CBD
Steering Committee — this Management District Plan is proposed to improve and provide
special benefits to individual parcels located within the boundaries of the newly proposed 2013
Downtown Arcadia Community Benefit District. The proposed CBD will provide special benefit
district improvements and activities, including marketing and promotions, district identity,
beautification, possible transportation related activities and other special benefit programs to
parcels within the boundaries of the proposed district.
The proposed Downtown Arcadia CBD serves to improve the individual parcels, attract new
customers to their businesses, increase sales, increase occupancies and enhance the benefitting
individual parcels within the CBD. The proposed CBD seeks to fund the special benefits that will
be provided over the next fifteen years, based upon keeping the greater Downtown Arcadia
area clean, safe, orderly, attractive, well marketed with special events and programs, and
increase commerce within the boundaries.
Boundaries:
The boundaries shall include approximately 12 whole or partial blocks with 108 parcels. The
District is generally bounded by Santa Anita Avenue on the west, on 2 "d Avenue on the east, by
St. Joseph on the north and by California Street on the south. See Section 2, pages 9 -10.
Budget:
The total first year Downtown Arcadia CBD budget based upon assessable individual parcel
owners for FY 13/14, will be $ 117,515.00. Please see Section 3 for a breakdown of the
categories of special benefit services and their allocation of services by Benefit Zone.
Improvements Activities and Services of the Downtown Arcadia CBD Plan:
There are five basic categories of special benefit services that will be funded with this
Downtown Arcadia CBD. All of these services will confer a special benefit to the individual
parcels within the Downtown Arcadia CBD. The categories of special benefits are as follows:
1. District Identity: These services include the branding of the Downtown Arcadia area,
marketing and promotions, newsletter, public relations, media relations, social media,
publicity, special events, web site development and maintenance, public space
development and holiday decorations. These services equal $ 56,000 or 48% of the first
year annual budget of the new district.
3
2. Sidewalk Operations, Beautification and Order: This includes all sidewalk and gutter
cleaning services, sidewalk steam cleaning services, as well as enhanced services to
beautify the district. Sidewalk operations services total $ 25,000 or 21% of the first year
annual budget of the new CBD.
3. Enhanced Residential Improvements : These services include, but are not limited to:
enhanced beautification in blocks with high density of condos, public space
development, implementation of pet related services and administrative costs. These
services currently generate no assessments since there are no residential condominiums
within the boundaries of the proposed CBD. However, with the opening of the
Downtown Arcadia Gold Line Station in 2015, we anticipate rapid growth of this sector
in and around the Gold Line Station and throughout the proposed CBD. The largest
growth in Downtown is anticipated in the next 15 years to be in market rate multi-
family housing, whether it be in the form of apartments or residential condominiums.
4. Program Management and Corporate Operations. These services equal $ 32,000 or
27% of the first year annual budget of the new district.
S. Contingency /Reserve. This fund equals $ 4,515 or 4% of the first year annual budget of
the new district. This contingency anticipates a "historic" non - payment rate percentage
of around 2 to 4 %, and any City or County collection fees.
Table 1 —A
Name of Program or
Percent of First Year
Estimated First Year Costs of
Category of Service
Annual Budget
Special Benefit Services
District Identity and Streetscape
48%
$ 56,000.00
Improvements
Sidewalk Operations,
21%
$ 25.000.00
Beautification and Order
Enhanced Residential
0%
$ 0
Improvements
Program Management,
27%
$ 32,000.00
Corporate Operations
Contingency
4%
$ 4,515.00
Total First Year Budget
100%
$117,515.00
Demands for prioritization of one special benefit need over another within the some category
above will occur year by year. This plan proposes percentages for groups of services with the
intent that they will provide district individual parcels with an understanding of the portion of
the budget allocated to fund those services, while simultaneously giving the property owners
and businesses an understanding of the proportional benefit they will receive. Actual costs by
4
category may vary from year to year; per service category, so budget line items may vary by up
to 10% during the life of this plan.
Method of Financine:
The financing of the Downtown Arcadia CBD is based upon a the levy of special assessments
upon real property that receive special benefits from the improvements and activities. See
Section 4 for assessment methodology and compliance with Proposition 218. There will be four
factors used in the determination of proportional benefit to the parcels in the CBD. Those four
factors are:
Linear frontage
• Lot size or the footprint of the parcel
# Building square footage (excluding parking structures built within the building that
predominantly serve the tenants of the building and are not open to the public); and
* Residential condos within the District
The following data represents the foundation of the assessments that will generate the revenue
to fund the Downtown Arcadia CBD: (verified as of March 9t', 2013);
Building Square Footage: 583,905 sq. feet
Gross Lot Size: 1,189,825 sq. feet
Gross Linear Frontage: 12,671 linear feet
Residential Condos: Currently, there are no residential condo developments
within the Downtown Arcadia CBD boundaries. In the
future, when development occurs around the Gold Line
station, they will be assessed at the rate of $0.20 per
square foot for their verifiable building square footage per
parcel. Commercial condos will be treated as commercial
buildings being assessed for their proportion of linear
frontage, lot size and building square footage. For a more
detailed explanation of residential assessments and
services please see Section 3, pages 11 -16.
Benefit Zones:
State law and the State constitution, Article XIIID require that special assessments be levied
according to the special benefit each individual parcel receives from the improvements. There
will be one benefit zone in the Downtown Arcadia CBD.
Annual Costs:
Annual assessments are based upon an allocation of program costs by assessable linear
frontage, (assessable on all sides of the parcels that receive benefit); PLUS lot or parcel square
Re-
J
footage; PLUS assessable building square footage, and in the case of residential condos, by
building square footage for that condo unit only. The residential condo owners are assessed
differently since they are, in essence, acquiring air rights with the condos and linear frontage
and lot size is not relevant to their parcels. This alternate assessment methodology is created
to respond to their special needs as homeowners within this growing Downtown district. All
four property variables will be used in the calculation of the annual assessment.
The FY 2013 -14 year annual assessments per property variable are as follows:
Linear frontage costs: $ 1.973 per linear foot per year
Building Square footage costs: $ 0.09679 per square foot per year
Lot Size costs: $ 0.030256 per square foot per year
Residential Condo costs: $ 0.20 per square foot of parcel unit square footage
Assessment District Revenue Generation from each property variable: (rounded off)
Linear Frontage: $ 25,000.00
Building Square Footage: $ 56,515.00
Lot Size: $ 36,000.00
Residential Condos $ 0
Total: $ 117,515.00
Cap:
The Downtown Arcadia CBD budget and assessments may be subject to changes in the
Consumer Price Index (CPI) for the Los Angeles /Long Beach Metro Area from February to
February, with annual increases not to exceed 5% per year. Increases will be determined by the
Owners' Association /District Management Corporation and will vary between 0% and 5%
annually. The Owners Association /Management Corporation will be the non - profit corporation
comprised of CBD business and property owners, which will oversee the operations of the CBD
on a day to day basis, under contract with the City. Changes in land use, development of empty
parcels, conversion of tax exempt to profitable land uses, demolition of existing buildings, and
creation of new parcels through new building or residential condo development may alter the
budget from year to year based upon the changes in the building square footage of an
individual parcels. Since linear frontage and lot size normally are not altered in the
redevelopment of a site, the only changes realized in the CBD will be through the building
square footage. In addition, changes in the budget may occur due to the conversion of single
parcels to multiple parcels due to the construction of residential or commercial condos.
,:1
Bonds
The District will not issue any bonds related to any program.
District Formation:
The District formation and modification requires a submission of petitions from property
owners representing more than 30% of the total assessments.
Once the City verifies the petitions totaling a minimum of 30% or $35,255.00 in assessment
contribution to the District, the City Council may adopt a Resolution of Intention to mail out
ballots to all affected property owners. The City will hold a public hearing and tabulate the mail
ballots. The Downtown Arcadia CBD will be formed if the weighted majority of all returned mail
ballots support the District formation and if the City Council adopts a resolution of formation to
levy the assessments on the benefiting parcels. We anticipate that this process will be
completed between July and December of 2013.
Duration;
The Downtown Arcadia CBD shall have a fifteen -year term which shall commence on January 1,
2014 and expire on December 31, 2028.
Governance:
Pursuant to the City of Arcadia Community Benefit District Ordinance and Section 36600 of the
California Streets and Highway Code, a District Management Corporation or Owners'
Association, will review District budgets and policies annually within the limitations of the
Management District Plan. The Management Corporation will file Annual Reports with the City
of Arcadia (City) and will oversee the day -to -day implementation of services as defined in the
Management District Plan.
Section 36614.5 states:
The "Owners' association" means a private nonprofit entity that is under
contract with a city to administer or implement activities and improvements
specified in the management district plan. An owners' association may be an
existing nonprofit entity or a newly formed nonprofit entity. An owners'
association is a private entity and may not be considered a public entity for
any purpose, nor may its board members or staff be considered to be public
officials for any purpose."
7
Section 2
Downtown Arcadia CBD Boundaries
Boundaries: The following text will define the boundaries of the Downtown Arcadia CBD.
Genera! Description of the Proposed Boundaries: Parcels in the commercial corridors of the
Downtown Arcadia CBD will include as follows:
# Northern B_ oundary: Starting at the parcels at the southwestern and
southeastern corners of the intersection of St. Joseph Street and 1st Avenue, running
south;
■ Southern Boundary: Starting at the parcels at the northwestern and
northeastern corners of the intersection of California Street and 1st Avenue, running
north;
• Eastern Boundary: Starting at the parcels at the northwestern and
southwestern corners of the intersection of 2 "d Avenue and Huntington Drive, running
westward;
# Western Boundary: Starting at the parcels at the southeastern and
northeastern corners of the intersection of Huntington Drive and Santa Anita, running
eastward;
3
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Section 3
District Improvement and Activity Plan
Process to Establish the Improvement and Activity Plan /Outreach Efforts:
Since summer of 2012 business and property owners in Downtown Arcadia have met to discuss
the advantages of creating this Downtown community benefits district. Commencing in the
summer of 2012, a survey was sent to property owners in the proposed C8D area to ascertain
their level of support for the establishment of this assessment district. In addition to the
survey, a Downtown Arcadia Steering Committee was created and met on the following dates:
(Special thanks to Scott Hettrick of the Arcadia Chamber of Commerce for hosting all of the CBD
Steering Committee meetings);
• July 11th 2012 CBD effort launched at the Chamber of Commerce office.
• August 7th, 2012
• September 12th 2012
Ph October 10th 2012
■ October 24th, 2012
November 20th — Presentation on results of the survey to the Arcadia City Council
January 9th 2013
February 10, 2013 —presented with 5 options for services and costs
■ March 6th 2013 — selection of the option that would adequately fund the special benefits
of the CBD, Management Plan approved
Explanation of Special Benefit Services:
All of the improvements and activities detailed below are provided only to properties defined
as being within the boundaries of the Downtown Arcadia CBD, and which improvements and
activities will provide special benefit to the owners of those properties. No improvements or
activities will be provided to properties outside the Downtown CBD boundaries. All benefits
derived from the assessments outlined in this Management District Plan fund services directly
benefiting the property owners in this community benefit district, inasmuch as all services will
be provided to the properties defined as being within the District boundaries and no services
will be provided outside the District boundaries.
10
As part of this process, the City will articulate which general benefits are currently being
provided to the Downtown Arcadia property owners from the current general fund. The
frequency of these general benefits may change from year to year and time to time based upon
budget constraints. However, City general benefits will not be withdrawn from the Downtown
CBD unless they are withdrawn by an equal amount City wide. The CBD funded special benefits
will not replace City funded general benefits, but rather will provide special benefits to parcel
owners over and above the general benefits provided by the City of Arcadia.
All services funded by the assessments outlined in the Management District Plan are intended
to directly benefit the property, business owners and residents within this area to support
increased commerce, business attraction and retention, retained and increased commercial
property rentals, enhanced safety and cleanliness in the CBD, improved district identity, and
eventually specialized beautification and enhanced programs for the condo residential unit
parcels within the District.
The total improvement and activity plan budget for 2013 -14, which is funded entirely by
property assessments within the CBD boundaries, is projected to be $ 117,515.00. The costs of
providing each of the budget components was developed from actual experience obtained in
providing these same services in similar districts throughout the State of California.
The Downtown Arcadia CBD Steering Committee has prioritized the following categories of
special benefit services for the new District. The categories of special benefit services set forth
the intent of the budget category, but also gives the District Management Corporation flexibility
to allocate the services based upon the changing needs of the District from year -to -year within
each budgeted category.
Improvements Activities and Services of the Downtown Arcadia CBD Plan:
There are five basic categories of special benefit services that will be funded within the
Downtown Arcadia CBD. All of these services are designed to confer a special benefit to the
individual parcels within the Downtown Arcadia CBD over and above the General Benefits
already received. The categories of special benefits are as follows:
1. District Identity: These services include the branding of the Downtown Arcadia area,
marketing and promotions, newsletter, public relations, media relations, social media,
publicity, special events, web site development and maintenance, public space develop
and holiday decorations. These services equal $ 56,000 or 48% of the first year annual
budget of the new district.
2. Sidewalk Operations, Beautification and Order. this includes all sidewalk and gutter
cleaning services, sidewalk steam cleaning services, as well as enhanced services to
beautify the district. Sidewalk operations services total $ 25,000 or 21% of the first year
annual budget of the new CBD.
3. Enhanced Residential Improvements : These services include, but are not limited to:
enhanced beautification in blocks with high density of condos, public space
development, implementation of pet related services and administrative costs. These
11
services currently generate no assessments since there are no residential condominiums
within the boundaries of the proposed CBD. However, with the opening of the
Downtown Arcadia Gold Line Station in 2015, we anticipated rapid growth of this sector
in and around the Gold Line Station and throughout the proposed CBD. The largest
growth in Downtown is anticipated over the next 15 years will be in market rate multi-
family housing, whether it be in the form of apartments or residential condominiums.
4. Program Management and Corporate Operations. These services equal $ 32,000 or
27% of the first year annual budget of the new district.
S. Contingency /Reserve. This fund equals $ 4,515 or 4% of the first year annual budget of
the new district. This contingency anticipates a "historic" non - payment rate percentage
of around 2 to 4 %, and any City or County collection fees.
Table 3 — A
Name of Program or
Percent of First Year
Estimated First Year Costs of
Category of Service
Annual Budget
Special Benefit Services
District Identity and Streetscape
4895
$ 56,000.00
Improvements
Sidewalk Operations,
21%
$ 25.000.00
Beautification and Order
Enhanced Residential
0%
$ 0
Improvements
Program Management,
27%
$ 32,000.00
Corporate Operations
Contingency
4%
$ 4,515.00
Total First Year Budget
10056 .
$117,515.00
12
The following categories of special benefit services shall only be provided to parcels within the
District.
1. DIsTRjcT IDENTITY /VISITOR ATTRACTION: $ 56,000.00 48%
Examples of these special benefit services and costs include, but are not limited to:
F Business attraction and expansion
Web site development and updating
■ Brochures
■ Tourist related activities
Marketing
Advertising
■ Special Events
■ Logo development
• Social media
• Signage linking the Gold Line station to the rest of the CBD properties-
Public relations
In the future, with the development of new buildings and residential condos, possible
transportation /shuttle service between various stops and the Arcadia Metro Station
13
2. SIDEWALK OPERATIONS, BEAUTIFICATION, AND ORDER: $ 25,000.00 21%
All of these services will not replace or reduce current city services but will rather enhance
services above their current general benefit level. Costs may include, but are not limited to:
■ Regular sidewalk and gutter sweeping
■ Special event management, security and clean up
Tree and vegetation planting and maintenance
■ Public space development and maintenance;
■ Periodic sidewalk steam cleaning
3. ENHANCED RESIDENTIAL IMPROVEMENTS: $ o 0%
Residential condos will be assessed separately due to their unique parcel status and special
benefit needs in the district. When they are constructed within the boundaries of the CBD,
residential condos blocks will have the following special benefit services conferred on the
frontage their parcels. These services include, but are not limited to:
• Installation, stocking and upkeep of pet waste distribution stations on the frontage
adjacent to the high concentrations of residential condo individually assessed parcels;
• Enhancement and beautification of sidewalks on the frontages adjacent to the high
concentrations of residential individually assessed parcels,
• Installation of hanging plants, and enhanced upkeep in the sidewalks surrounding these
frontages adjacent to these residential condos;
• Other services requested by the residents that confer special benefit to the areas directly
adjacent to the parcels with high concentrations of residential condos;
r Proportional share of the Administrative and Contingency costs to cover the oversight of
the Enhanced beautification special benefit services.
4. PROGRAM MANAGEMENT AND CORPORATE OPERATIONS: $ 32,000.00 27%
Examples of these special benefit services and costs include, but are not limited to:
Staff and administrative costs
• Directors and Officers and general liability Insurance
■ Office related expenses
■ Rent
■ Financial reporting and accounting
■ Legal work
S. CONTINGENCYIRESERVE: $ 4,515.00 496
Examples of these special benefit services and costs include, but are not limited to:
• Delinquencies
• Reserves
• City and county administration costs
14
Fifteen -Year Operating Budget:
A projected fifteen -year operating budget for the Downtown Arcadia CBD is provided below.
The projections are based upon the following assumptions:
Assessments may be subject to changes in the Los Angeles County Consumer Price Index
(CPI), with annual increases not to exceed 5% per year, Increases will be determined by
the District Management Corporation and in no case shall annual increases exceed 5%
per year.
Fifteen -Year Projection of Maximum Assessment for the
Downtown Arcadia CBD*
Table 3 —B
15
FYI
FY2
FY3
FU
FY5
FY6
FY7
District identity,
Visitor Attraction
$56,000.00
$58,800.00
$61,740.00
$64,827.00
$68,068.35
$71,471.77
$75,045.36
Sidewalk Operations,
$105,847.77
Sidewalk operations
Beautification
$25,000.00
$26,250.00
$27,562.50
$28,940.63
$30,387.66
$31,907.04
$33,502.39
and order
$44,896.41
$47,141.23
$47,253.47.
and Order
Program Management,
Corp. Operations
$32,000.00
$33,600.00
$35,280.00
$37,044.00
$38,896.20
$40,841.01
$42,883.06
Contingency
$4,515.00
$4,740.75
$4,977.79
$5,22668
- . $5,488.01
$5,762.41
$6,056.33
Total
$117,515.00
$123,390.75
$129,560.29
$136,038.30
$142,840.22
$149,982.23
$157,481.34
15
FY8
FY9
FY10
FY111
FY12
FY23
FY14
FY15 .
District Identity ,
Visitor Attraction
$78,797.62
$82,737.50
$86,87438
$91,218.10
$95,779.00
$100,567.95
$105,596.35
$105,847.77
Sidewalk operations
Seautlflcation
$35,177.51
$36,936.39
$38,783.21
$40,722.37
$42,758.48
$44,896.41
$47,141.23
$47,253.47.
and Order
Program Management,
Corp. Operations
$45,027.21
$47,278.57
$49,642.50
$52,124.63
$54,730.86
$57,467.40
$60,340.77
$60,484.44
Contingency
$6,353.06
$6,670.71
$7,004.25
$7,354.46
$7,722.18
$8,108.29
$8,513.71
$8,533:98
Total
$165,355.41
$173,623.18
$182,304.34
$191,419.55
$200,990.53
$211,040.06
$221,592.06
$222,119.66
15
Section 4
Assessment Methodology
The Downtown Arcadia CBD is a property -based benefit assessment district being established
pursuant to Ordinance # 2306 of Article 1 of the Arcadia Municipal Code, Chapter 14 on
Community Benefit Districts, adopted unanimously by the Arcadia City Council on January 15,
2013(date of second reading and adoption) . Due to the special benefit assessment nature of
assessments levied within a CBD, program costs are to be distributed amongst all identified
specially benefiting properties based on the proportional amount of special program benefit
each property is expected to derive from the assessments collected. The Arcadia CBD
Ordinance refers to the concept of relative "benefit" received from CBD funded programs and
activities versus amount of assessment paid. Only those properties expected to derive special
benefits from CBD funded programs and activities may be assessed and only in an amount
proportional to the relative special benefits expected to be received.
The method used to determine special benefits derived by each identified property within a
CBD begins with the selection of a suitable and tangible basic benefit unit. For property related
services, such as those proposed in the Downtown Arcadia CBD, the benefit unit may be
measured in terms of in linear feet of primary street frontage or parcel size in square feet or
building size in square feet or number of building floors or proximity to major corridors in
average linear feet, or any combination of these factors.
Based on the factors described above such as geography and nature of programs and activities
proposed, an assessment formula is developed which is derived from a singular or composite
basic benefit unit factor or factors. Within the assessment formula, different factors may be
assigned different "weights" or percentage of values based on their relationship to
programs /services to be funded.
Next, all program and activity costs, including incidental costs, District administration and other
program costs, and benefit zones are estimated. There are two benefit zones in the proposed
Downtown Arcadia CBD. Proposition 218 requires that indirect or general benefits not be
incorporated into the assessment formula and levied on the District properties in property
based assessment Districts; only direct or "special' benefits and costs may be considered.
Indirect or general benefit costs, if any, must be identified and, if quantifiable, calculated and
factored out of the assessment cost basis to produce a "net" cost figure.
In addition, tax exempt, non - profit and other public or government owned properties are not
exempt from being assessed and if special benefit is determined to be conferred upon
government owned properties, then those properties must be assessed in proportion to the
special benefits conferred in a manner similar to privately owned property assessments.
16
Based on the foregoing, 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. Then the amount of assessment for each parcel can be computed 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 CBD.
The method and basis of spreading program costs varies from one CBD to another based on
local geographic conditions, types of programs and activities proposed, and size and
development complexity of the District. For example, CBDs may require other benefit zones to
be identified to allow for a tiered assessment formula for variable or "stepped- down" benefits
derived.
Here, program costs spreading variables include benefit zones, linear frontage, lot or parcel size
and building square footage, and residential condo parcels. During the first year of operation,
approximately:
Assessment District Revenue Generation from each property variable: (numbers rounded off)
Linear Frontage $ 25,000.00
Building Square Footage: $ 56,515.00
Lot Size: $ 36,000.00
Residential Condos $ 00
Total: $117,515.00
The FY 2013 -14 year annual assessments per property variable are as follows:
Linear frontage costs: $ 1.973 per linear foot per year
Building Square footage costs: $ 0.09679 per square foot per year
Lot Size costs: $0.030256 per square foot per year
Residential Condo costs: $0.20 per square foot of parcel unit square footage
(future construction)
17
Table 4 -A
Special Benefit Services, Funding Source, Costs and Percentage of Annual Budget
Assumption on generation of revenues per property variable:
Service
Funded by Property Variables
District Identity and
Streetscape
Funded by building square footage assessments
Improvements
Sidewalk Operations
Funded by linear frontage assessments
Enhanced Residential
Funded by building square footage of residential condos once
Improvements
constructed
Admin /Corp Operations
Funded by lot size assessments
Contingency
Funded by lot size assessments
Building Square Footage Defined:
Building square footage is defined as gross building square footage throughout the CBD.
Building square footage assessments will fund the District Identity /Marketing and Promotions
component of the CBD. Building square footage is the one property variable that will grow over
the course of the life of the CBD since the District as a whole has a less than % to 1 ratio of
improvements (building square footage) to lot size. The percentage of building square footage
that is dedicated to private or internal tenant parking needs has been deducted from the gross
building square footage. Only parking structures that are open to the public and charge fees to
the general public on a regular basis will have their building square footage assessed as any
other commercial building. Apartment buildings within the boundaries of the CBD will be
assessed as a commercial building. Building square footage data was obtained from the County
Assessor's property records and reviewed by staff at New City America.
The building square footage will fund the costs of all "District Identity and Streetscape
Improvement special benefits funded from the CBD.
Lot Square Footage Defined:
Trot square footage is defined as the total amount of area within the borders of the parcel. Lot
size square footage will fund: 1) program and corporate operations services costs and; 2)
contingency cost. The borders of a parcel are defined on the County Assessor's parcel maps and
were confirmed by New City America staff and City of Arcadia.
18
Linear Frontage Defined:
Individual parcels will be assessed for all sides that receive benefit from the Sidewalk
Operations portion of the budget. Linear frontage is assessed based upon the anticipated
frequency of sidewalk operations services that will be required for each benefitting parcel.
Linear frontage assessments will fund the costs of Sidewalk Operations services in each
respective Benefit Zone.
Linear front footage data was obtained from the County Assessor's parcel maps and
reviewed by staff at New City America, and finally verified by the City of Arcadia.
Commercial Condominium Parcels Defined:
Ground floor commercial condominiums will be treated like independent "mini" commercial
buildings and assessed based on their divided building area, the footprint of land they cover,
and the amount of direct street frontage towards the exterior of the building.
Residential Condo Unit Parcels Defined:
Condo Residential Unit building square footage is defined as the livable building square footage
within the walls of the condo residential unit parcel. They are included in a special category to
designate their unique special benefits relative to the other commercial parcels within the
Downtown Arcadia CBD. Unlike the other commercial parcels in the district, including
commercially operated apartment buildings, residential condo parcels are assessed for building
square footage only, and are not assessed for linear frontage and lot square footage.
Ground floor commercial condos or office condos would be assessed just as other commercial
properties.
Residential condo individually assessed parcels are assessed as a separate category. These
residential condo individual parcels will be assessed for their building square footage only at the
rate of $0.20 per square foot per year, commencing the first year of the new District. The
rationale for assessing residential condos only for the building square footage rate is provided
below.
Residential condo individually assessed parcels are assessed differently than multi -unit, for -rent
apartment buildings, due to the frequency of special benefit services required by each parcel as
described below. The multi -unit apartment buildings are commercial properties in which the
tenant and landlord have an economic relationship as opposed to residential condo buildings
where individual property owners own separate air space parcels on a single lot. Residential
apartment buildings can be bought or sold just as like commercial buildings whereas residential
condo individual units are separately owned and must be individually bought and sold.
Distinctions between residential apartment buildings with tenants and residential condominium
building with individual unit owners are as follows:
19
1. The Davis Sterling Act establishes rules and regulations for residential condo owners
based upon "separate interests" (i.e. ownership rights), as opposed to renters who
only have a possessory interest.
2. Generally, residential condo unit owners demonstrate greater care for their property
and concerns about quality of life issues due to their investment in real estate.
3. Residential owners have the right to vote in a Proposition 218 hearing, tenants do
not have that right.
4. Residential condo owners are required to contribute to a legally established
Homeowners Associations to oversee building maintenance, tenants are not
The assessment methodology has been written to confer special benefits to residential condo
individual assessed parcels since residential condo owners have unique investment backed
expectations about the care and maintenance of the building and its surroundings compared to
the interest of residential tenants who have a possessory not an ownership interest. The
residential condos' special assessment methodology ensures that a fund will be established to
maintain high levels of special benefit services that apply directly and proportional to the blocks
that demand virtually seven days per week, 365 days per year special benefits.
As redevelopment of various parcels occurs within the boundaries of the CBD in the next 15
years, building square footage may be removed, and then added onto that parcel through the
process of redevelopment. The Management Corporation operating the CBD will ensure that
the removal or addition of building square footage is reported to the city and county annually
through their annual report on any changes to the assessment district. The parcel costs will be
lowered, or rise accordingly, based upon the activity within that parcel —from year to year.
In future years, the assessments for the special benefits bestowed upon the included CBD
parcels may change in accordance with the assessment methodology formula listed in this
Management District Plan and Engineer's Report provided the assessment rate does not
change. If the assessment formula changes, then a Proposition 218 ballot will be required for
approval of the formula changes.
Exemptions
No benefitting parcels, regardless of taxable or tax - exempt property tax status, will be exempt
from the assessments funding the special benefit services of the Downtown Arcadia CBD.
Special benefit services will not be provided to any parcels outside of the boundaries of the
district. Publicly owned property will be assessed the same as privately owned parcels.
Calculation of Assessments
The proportionate special benefit derived by each identified parcel shall be determined in a
relationship to the entirety of the improvement or the maintenance and operation expenses of
an improvement or for the cost of property service being provided. Per California Constitutional
Amendment Article XIII D, Section 2(i), "Special Benefit ", means a particular and distinct benefit
over and above general benefits conferred on a real property located in the district or to the
public at large.
20
No assessment will be imposed on any parcel that exceeds the reasonable cost of the
proportional special benefits conferred upon that parcel. Only special benefits are assessable
and these benefits must be separated from any general benefits. A general benefit is defined as
a benefit to properties in the surrounding community or a benefit to the public in general
resulting from improvement, activity or service to be provided by the assessment levied. For
example, CBD property owners will derive benefit from District Identity and marketing and
promotional activities, sidewalk cleaning and oversight of these services, however the general
public will also benefit from the delivery of these special benefit services.
The special benefits funded by this new Downtown Arcadia CBD will be over and above existing
City of Arcadia baseline service levels in the commercially zoned parcels and will serve to
increase tenancies, increase commerce, increase economic viability and fund a system of
cleanliness and beautification over and above current service levels.
Properties are assessed as defined on the County Assessor's most current parcel maps and the
latest property tax rolls.
The preceding methodology is applied to the database of parcels within the District. The
process for compiling the property database includes the following steps:
• A report was submitted to the City Manager's office using the data obtained from
the Los Angeles County Tax Assessors office.
• A list of properties to be included within the Downtown Arcadia CBD is provided in
Section 7.
A detailed explanation of the special benefit assessment rationale is made in the attached
Engineer's Report.
The Calculation of Assessment for each parcel in the Downtown Arcadia CBD is as follows:
CBD Parcel assessment
The annual assessment method for all parcels and ground floor commercial condominiums is:
Total Street Frontage X $1.973 per linear foot
plus
Total Lot Square Footage X $0.030256per square foot
Plus
Total Building Square footage X $0.09 6790 per square foot
Eauals
TOTAL PARCEL ASSESSMENT
21
Residential Condo Assessment:
The annual assessment method for a residential condo is:
Total Residential Unit Building Square footage X $0.20 per Square Foot
E, auals
TOTAL RESIDENTIAL CONDO UNIT ASSESSMENT
Table 4 - B
Database for Downtown Arcadia CBD.
Assessable property variables as of March 1, 2013
Linear Frontage
tot Square
Building Square
Condo Residents Unit
Total
Footage Total
Footage Total
Parcels, Building Square
FY4
iFYS
Footage to be assessed
12,671 linear feet
1,189,825 sq. ft.
583,905 sq. ft.
0 sq. feet
Maximum Assessment
Assessments will be subject to changes in the Los Angeles County Consumer Price Index (CPI),
for all urban consumers, annual increases not to exceed 5% per year. Increases will be
determined by the CBD District Management Corporation and may vary between 0% and 5% in
any given year. The maximum the assessments can be increased is 5% over the previous fiscal
year's base assessments. Not implementing the increase for one year does not give the District
Management Corporation the authority to accumulate increases above 5% within any given
fiscal year. The following projections illustrate a potential 5% annual increase.
Table 4 - C
Maximum Assessments by Property Variable
Projected Assessment
FY1
FY2
FY3
FY4
iFYS
Linear Frontage
$
1.9730
$
2.0717
$
2.1752
$
2.2840
$
2.3982
Building Sq. Ft.
$
0.09679
$
0.10163
$
0.10671
$
0.11205
$
0.11765
Lot Square Footage
$
0.030256
$
0.031769
$
0.033357
$
0.035025
$
0.036776
Condo Bldg. Sq. Ft.
$
0.20000
$
0.21000
$
0.22050
$
0.23153
$
0.24310
Projected Assessment
FY6
FY7
FYS
FY9
FYSO
Linear Frontage
$
2.5181
$
2.6440
$
2.7762
$
2.9150
$
3.0608
Building Sq. Ft.
$
0.12353
$
0.12971
$
0.13619
$
0.14300
$
0.15015
Lot Square Footage
$
0.038615
$
0.040546
$
0.042573
$
0.044702
$
0.046937
Condo Bldg. 5q. Ft.
$
0.25526
$
0.26802
$
0.28142
$
0.29549
$
0.31027
22
Projected Assessment
FY12
FY12
FY13
FY14
FY15
Linear Frontage
$
3.2138
$
3.3745
$
3.5432
$
3.7204
$
3.9064
Building Sq. Ft.
$
0.35766
$
0.16554
$
0.17382
$
0.18251
$
0.19164
Lot Square Footage
$
0.049284
$
0.051748
$
0.054335
$
0.057052
$
0.059905
Condo Bldg. Sq. Ft.
$
0.32578
$
0.34207
$
0.35917
$
0.37713
$
0.39599
Budget Adjustments
Annual budget surpluses, if any, will be rolled into the following year's budget. Assessments
will be set annually, within the constraints of the CPI or land use changes. Revenues from the
delinquent accounts may be expended in the year they are received. If the District is not
renewed, any remaining funds will be returned to property owners in the proportion by what
each property owner paid.
If after the initial term the District decides to renew and if there is money left over from the
previous term, the balance of remaining funds will be rolled over into the renewed District.
These "rolled over" funds may only be used within the boundaries of the renewed district and
cannot be expended for activities, services, or improvements in an area expanded beyond the
original District. However, the rolled over funds may be used to finish District Management
Corporation activities in the Original district.
Time and Manner for Collecting Assessments
The Downtown Arcadia CBD assessments will appear as a separate line item on annual property
tax bills prepared by the County of Los Angeles. The assessments shall be collected at the same
time and in the same manner as for the ad valorem property tax paid to the County of Los
Angeles. These assessments shall provide for the same lien priority and penalties for
delinquent payment as is provided for the ad valorem property tax.
Any delinquent assessments owed for the first year will be added to the property tax roll for the
following year together with any applicable interest and penalties. The "property owner"
means any person shown as the owner /taxpayer on the last equalized assessment roll or
otherwise known to be the owner /taxpayer by the City.
Disestablishment
California State Law, Section 36670 provides for the disestablishment of a District. Provisions
for annual disestablishment of the CBD are provided for in the local CBD ordinance through
referral to Section 36600 of the California Streets and Highway Code. Property owners
dissatisfied with the results, management or quality of the services may petition the City
Council to disestablish the CBD, in the same method in which they petitioned the City Council to
establish the District. Section 36670 states:
"2) During the operation of the district, there shall be a 30- dayperiod each
year in which assessees may request disestablishment of the district. The
first such period shall begin one year after the date of establishment of the
district and shall continue for 30 days. The next such 30 -day period shall
23
begin two years after the date of the establishment of the district. Each
successive year of operation of the district shall have such a 30 -day period.
Upon the written petition of the owners of real property or of businesses in
the area who pay 50 percent or more of the assessments levied, the city
council shall pass a resolution of intention to disestablish the district.
The city council shall notice a hearing on disestablishment.
(b) The city council shall adopt a resolution of intention to disestablish
the district prior to the public hearing required by this section. The
resolution shall state the reason for the disestablishment, shall state the
time and place of the public hearing, and shall contain a proposal to dispose
of any assets acquired with the revenues of the assessments levied within the
property and business improvement district. The notice of the hearing on
disestablishment required by this section shall be given by wail to the
property owner of each parcel or to the owner of each business subject to
assessment in the district, as appropriate. The city shall conduct the
public hearing not less than 30 days after mailing the notice to the property
or business owners. The public hearing shall be held not more than 60 days
after the adoption of the resolution of intention.'
Upon the termination of the previous District, any remaining revenues shall be transferred to
the renewed District, if one is established, pursuant to Streets and Highways Code Section
36660(b). Unexpended surplus funds will be returned to property owners based upon each
parcels percentage contribution to the previous fiscal year's assessments if the District is not
renewed.
Government Assessments
The Downtown Arcadia CBD Management Plan assumes that the City of Arcadia, the Successor
Agency and other government entities will pay assessments for the public property within the
boundaries of the District. Article XIII D, Section 4 of the California Constitution was added in
November of 1996 to provide for these payments.
Parcels owned by the City of Arcadia, controlled by the Successor agency, the State of
California, the Arcadia City Unified School District, and the County of Los Angeles shall receive
benefits, commensurate with the assessments paid into the Downtown Arcadia CBD. The
publicly owned parcels are presumed to benefit equally to the privately owned parcels for the
special benefits provided.
Future Development
As a result of continued development, the District may experience the addition or subtraction
of assessable commercial or residential building footage for parcels included and assessed
within the District boundaries. The modification of parcel improvement assessed within the
District may then change upwards or downwards the amount of total building square footage
assessment for these parcels.
In the future years, the assessments for the special benefits bestowed upon the included CBD
parcels may change in accordance with the assessment methodology formula listed in the
Management District Plan and Engineer's Report provided the assessment rate does not
24
change. If the assessment formula changes, then a Proposition 218 ballot will be required to
approve the formula changes.
Table 4 - D
Government Owned Parcels in the
Downtown Arcadia CBD
5773 014 913 Redevelopment Agency Of Arcadia *no Site Address*
25
Annual
Site
APN Legal Owner
Of Site Street
5773 010 90( Arcadia City
*no Site Address*
5773 010 907 Arcadia City
*no Site Address*
5773 012 903 Arcadia City
*no Site Address*
5773 012 90 "e Arcadia City
*no Site Address*
5773 006 913 Los Angeles- Pasadena Metro Blue
29 E Santa Clara St
5773 006 919- Los Angeles- Pasadena Metro Blue
29 E Santa Clara St
5773 006 91L Los Angeles- Pasadena Metro Blue
*no Site Address*
5773 014 913 Redevelopment Agency Of Arcadia *no Site Address*
25
Annual
1.9%
Assessment
Percent
$957.87
0.8%
$681.40
0.6%
$2,384.89
2.0%
$295.31
0.3%
TOTAL $4,319.46
3.7%
$ 2,226.79
1.9%
$944.02
0.8%
$3,000.83
2.6%
TOTAL $6,171.65
5.3%
$329.07 0.3%
Section 5
District Rules and Regulations and Governance
There are no specific rules and regulations prescribed for the proposed Downtown Arcadia
Community Benefit District Management Corporation except that it will adhere to the open
meeting provisions of the Ralph M. Brown Act and will seek to be as open and transparent to
the CBD assessees and the public at large as is reasonably possible.
Pursuant to the City of Arcadia Community Benefit District Ordinance and Section 36600 of the
California Streets and Highway Code, a District Management Corporation or Owners'
Association, will review District budgets and policies annually within the limitations of the
Management District Plan. The Management Corporation will file Annual Reports with the City
of Arcadia (City) and will oversee the day -to -day implementation of services as defined in the
Management District Plan, Section 36614.5 states:
"The "Owners' association" means a private nonprofit entity that is under
contract with a city to administer or implement activities and improvements
specified in the management district plan. An owners' association may be an
existing nonprofit entity or a newly formed nonprofit entity. An owners'
association is a private entity and may not be considered a public entity for
any purpose, nor may its board members or staff be considered to be public
officials for any purpose."
Bonds:
The District will not issue any bonds related to any program.
Section 6
Implementation Timetable
The Downtown Arcadia CBD is expected to be established and begin implementation of the
Management District Plan on January 1, 2014. Consistent with the local enabling ordinance the
Downtown Arcadia CBD will have a fifteen -year term through December 31, 2028.
Section 7
Assessment Roll of Properties Included
APN
Annual
5773 012 006
$348.80
Assessment
5773 012 007
$697.60
5773 006 039
$2,811.36
5773 012 008
$744.93
5773 006 056
$3,830.91
5773 012 009
$721.80
5773 006 057
$5,775.70
5773 012 010
$924.38
5773 006 911
$2,226.79
5773 012 011
$1,129.92
5773 006 912
$944.02
5773 012 012
$378.99
5773 006 914
$3,000.83
5773 012 013
$674.95
5773 007 028
$784.16
5773 012 018
$6,380.01
5773 007 031
$754.29
5773 012 022
$4,27f.7$
5773 007 035
$2,026.03
5773 012 901
$2,384.89
5773 010 001
$790.64
5773 012 902
$295.31
5773 010 002
$437.34
5773 013 015
$1,007.80
5773 010 003
$639.68
5773 013 016
$840.57
5773 010 004
$857.07
5773 013 017
$810.52
5773 010 005
$351.71
5773 013 018
$4,236.08
5773 010 006
$354.73
5773 013 019
$331.96
5773 010 007
$1,699.69
5773 013 020
$817.31
5773 010 008
$648.37
5773 013 021
$653.44
5773 010 009
$699.24
5773 013 022
$517.94
5773 010 010
$593.52
5773 013 023
$770.56
5773 010 011
$954.69
5773 013 024
$706.68
5773 010 012
$620.57
5773 013 025
$658.28
5773 010 013
$161.24
5773 013 026
$808.31
5773 010 014
$743.88
5773 013 027
$498.48
5773 010 015
$629.09
5773 013 028
$803.47
5773 010 018
$505.36
5773 013 029
$756.72
5773 010 019
$1,078.62
5773 013 034
$2,127.57
5773 010 020
$921.44
5773 014 001
$1,278.61
5773 010 021
$1,115.02
5773 014 002
$2,866.57
5773 010 022
$703.87
5773 014 026
$805.97
5773 010 023
$652.57
5773 014 027
$365.03
5773 010 024
$820.89
5773 014 028
$159.00
5773 010 030
$1,807.51
5773 014 029
$1,264.37
5773 010 031
$345.24
5773 014 034
$95.40
5773 010 900
$957.87
5773 014 037
$2,095.66
5773 010 901
$681.40
5773 014 038
$1,736.88
5773 011040
$339.24
5773 014 051
$2,515.43
5773 011042
$1,846.32
5773 014 052
$888.53
5773 011048
$314.88
5773 014 911
$329.07
5773 011049
$666.24
5773 017 001
$291.50
5773 012 001
$1,285.06
5773 017 002
$449.15
5773 012 002
$665.51
5773 017 003
$355.95
5773 012 003
$697.60
5773 017 004
$296.62
5773 012 004
$692.76
5773 017 033
$333.17
5773 012 005
$658.53
5773 017 034
$1,573.44
27
5773 017 039
$1,053.18
5773 018 011
$1,782.04
5773 018 012
$801.02
5773 018 013
$742.11
5773 018 014
$307.58
5773 018 015
$362.00
5773 018 016
$1,440.06
5773 019 008
$200.17
5773 019 009
$621.21
5773 019 010
$643.67
5773 019 011
$522.78
5773 019 025
$2,272.69
5773 020 001
$1,112.52
5773 020 002
$551.43
5773 020 003
$887.19
5773 020 034
$522.87
5773 020 035
$621.03
5773 020 036
$975.93
TOTAL
$117,515.39
28
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CALIFORNIA, AMENDING ARTICLE I OF THE ARCADIA
MUNICIPAL CODE BY ADDING CHAPTER 14 CONCERNING THE
ESTABLISHMENT OF COMMUNITY BENEFIT DISTRICTS
THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES
ORDAIN AS FOLLOWS:
SECTION 1. The Arcadia Municipal Code is hereby amended by adding Chapter
14 to Article I to read in its entirety as follows.-
"CHAPTER14
•
�_K Im-14m,
101*1111111111a;
The purpose of this chapter is to enhance the ability of the City and businesses therein
to establish property and business improvement districts pursuant to the Property and
Business Improvement District Law of 1994 (Streets & Highways Code Section 36600
et seq.) by. (1) reducing the percentage of property owners whose signatures are
required to initiate formation of a property and business improvement district ("Property
BID") from fifty percent (50%), as authorized by the Property and Business
Improvement District Law of 1994, to thirty percent (30%); (2) extending the period for
which a Property BID may exist from five years, as authorized by the Property and
Business Improvement District Law of 1994, to twenty years, and (3) authorizing the
reimbursement of formation costs,
1
A. The procedures established in this chapter shall be additional or alternative to any
on
B. In forming assessment districts to fund activities and improvements that confer a
special benefit on property, the City Council may elect to use the procedures set forth in
the Property and Business Improvement District Law of 1994 (Streets & Highways Code
§§ 36600 et seq.) (the "PBID Law") as modified by this chapter. The City Council shall
be bound by, and comply with, applicable state law governing the establishment and
operation of property and business improvement districts in all respects not inconsistent
with the chapter.
C. An assessment district established pursuant to this chapter shall be denominated a
"Community Benefit District" or "District" and the assessment levied in connection with
such a district shall be denominated a "Community Benefit Assessment."
D. Except where otherwise provided in this chapter, "Community Benefit District" shall
have the meaning given to "Property and Business Improvement District" by Section
366,11 of the PBID Law and each reference in the PBID Law to a "Property an*
Business Improvement District" or a "District" shall be deemed also a reference to a
"Community Benefit District."
E. Except where otherwise provided in this chapter, "Community Benefit Assessment"
shall have the meaning given to "Assessment" by Section 36606 of the PBID Law and
each reference in the PBID Law to an "Assessment" shall be deemed also a reference
to a "Community Benefit District."
1962. PETITION REQUIREMENT.
Upon the written petition, signed and acknowledged, of the property owners in the
proposed District who will pay more than thirty percent (30%) of the assessments
proposed to be levied, the City Council may initiate proceedings to form a District by
adopting a resolution expressing its intention to form a District. The amount of
assessment attributable to property owned by the same property owner which is in
excess of twenty percent (20%) of the amount of all assessments proposed to be levied
shall not be included in determining whether the petition is signed by property owners
who will pay more than thirty percent (30%) of the total amount of assessments
proposed to be levied.
ITT-*jW-1T91W1
A. The City Council may authorize a District formed pursuant to this chapter to recover
through assessments the costs incurred in forming the District, including:
1. The costs of preparation of the management plan and engineer's report required by
state law;
2. The cost of circulating and submitting the petition to the City Council seeking
establishment of the District;
3. The costs of printing, advertising and the giving of published, posted or mailed
notices;
4. Compensation of any engineer or attorney employed to render services in
proceedings under this chapter or the PBlD Law; and
5. Costs associated with any ballot proceedings required by law for approval of a new or
increased' assessment.
If the District will be authorized to recover these costs, the management plan required
pursuant to Streets & Highways Code Section 36622 shall specify the formation costs
eligible for recovery through assessments, the schedule for recovery of those costs, and
the basis for determining the amount of the additional assessment for recovery of costs,
including the maximum amount of the additional assessment, expressed either as a
dollar amount, or as a percentage of the underlying assessment.
B. The City may advance funds for the first year of a District so that the District can
commence work prior to the initial collection of the assessments. The funds advanced
shall not exceed the total assessment for the first year. The funds advanced shall be
repaid, with interest, within five (5) years of the collection of the first annual assessment.
1964. DURATION OF A DISTRICT.
A District established pursuant to this chapter may have a duration of up to twenty (20)
years, if so specified in the resolution of intention."
SECTION 2. If any portion of this Ordinance or the application thereof to any
person or circumstance shall be invalid or unenforceable to any extent, the remainder of
this Ordinance shall not be affected thereby and shall be enforced to the greatest extent
permitted by law.
SECTION 3. The City Clerk shall certify to the adoption of this Ordinance and
shall cause a copy of same to be published at least once in the official newspaper of
said City within fifteen (1 5) days after its adoption. This Ordinance shall take effect on
the thirty-first (31't) day after its adoption.
[SIGNATURES ON THE NEXT PAGE]
Ell
Passed, approved and adopted this 15th. day of ia,.).uary 2013.
Mayor of the City of Arcadia
ATTEST-
Fa = :100 a �. I I Wei i re TROT, k in
Stephen P. Deitsch
City Attorney
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF ARCADIA
1, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Ordinance No. 2306 was passed and adopted by the City Council of the City of
Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said
Council held on the 15th day of January, 2013 and that said Ordinance was adopted by the
following vote, to wit:
AYES: Council Members Amundson, Kovacic, Segal, Wuo and Harbicht
-911111111111133 "M
City it lerk of th City of Arcadia