HomeMy WebLinkAbout2009-079
1
2
3
4
5
6
7
8
RESOLUTION NO. --.lP09-79
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE FORMATION OF AN AUTO
CENTER PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
("DISTRICT"), FIXING THE BOUNDARIES THEREOF AND PROVIDING
FOR THE LEVY OF ASSESSMENTS AND TAKING OTHER ACTIONS IN
CONNECTION THEREWITH (SOUTHEAST INDUSTRIAL PARK AND
IVDA REDEVELOPMENT PROJECT AREAS)
.
WHEREAS, the laws of the State of California provide that cities and counties may form a
9 Property and Business Improvement District ("PBID") pursuant to the Property and Business
10 Improvement District Law of 1994 (the "PBID Law"), for the purposes of and pursuant to the
11 provisions of the PBID Law; and
12
WHEREAS, the City of San Bernardino (the "City") received a petition from the requisite
13
number of property owners as required by Section 36621(a) of the PBID Law requesting that the
14
City initiate proceedings for the formation of a PBID for the area generally bounded by Show Case
15
Drive and Century A venue on the north, El Camino Real on the east, Show Case Drive on the south
16
and Auto Plaza Drive on the west, which area is generally known and referred to as the "San
17
Bernardino Auto Center"; and
18
19
WHEREAS, as stated in the Management District Plan (attached hereto as Exhibit "A") as
previously submitted by the property owners executing and delivering the above referenced petition,
20
the purposes of the formation of the Auto Center Property and Business Improvement District (the
21
"District") shall be for the undertaking of additional security patrols, enhanced security measures,
22
enhanced maintenance measures, increased landscaping features, enhanced marketing activities,
23
improved signage and street lighting, graffiti removal, and other similar activities and matters and
24
capital improvements as may be permitted under the PBID Law and all as set further forth in the
25
Management District Plan; and
26
27 WHEREAS, assessments shall be levied on the real property, and not on the businesses,
28 within the boundaries of the District and said assessments shall be due and payable in the same
1
P:\Agendas\Resolutions\Resolutionsl2009\04-06-09 PBID Formation MeC Reso (Final),doc
2009-79
1 manner as real property general taxes, special property taxes and other assessments all in the manner
2 as provided in Section 36631, et seq., of the PBID Law; and
3
WHEREAS, on February 2, 2009, in the chambers of the Mayor and Common Council of
4 the City of San Bernardino ("Council"), the Council adopted Resolution No, 2009-24, entitled:
5 Resolution of Intent of the Mayor and Common Council of the City of San Bernardino Providing
6 for the Formation of a Property and Business Improvement District Within a Certain Area of the
7 City of San Bernardino and Taking Other Actions in Connection Therewith (Auto Center PBID)
8 (Southeast Industrial Park and IVDA Redevelopment Project Areas) and gave notice of a public
9 hearing as required by Govemment Code Sections 36623 and 53753; and
10
11
12
13
14
15
WHEREAS, the Engineer's Report dated February 2009, as attached hereto as Exhibit "B",
sets forth the purposes and intents of the District and the benefits to be received by each property
included within the District together with the method of determining the assessment roll for the
initial year of the District for the 2009-2010 property tax year and for the 5-year duration of the
District including the 5-year assessment total for each property within the District; and
WHEREAS, notice was given as required by law and published on March 22, 2009 and
16
17 again on March 29, 2009, and the public hearing was held at 4:30 p.m. on April 6, 2009, in the
18 chambers of the Council and after the holding of said public hearing and the canvass of the ballots
19 as submitted by the property owners in favor of the creation of said District, the City desires to form
20 the District pursuant to the terms and the conditions ofGovemment Code Section 36600, et seq.
21 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
22 THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS
23 FOLLOWS:
24 Section 1. The Council hereby finds and determines that the recitals set forth above are true
25 and correct in all respects, The City Clerk has received and canvassed the ballots as submitted by
26 the property owners within the boundaries of the District, and the City Clerk has declared that the
27 requisite number of affirmative votes have been received to thus allow for the formation of the
28 District as provided in this Resolution.
2
P:\Agendas\Resolutions\Resolutions\2009\04-06-09 PBID Formation MCC Reso (Final).doc
2009-79
1 Section 2. The Council hereby declares that the purposes of the District shall include, but
2 not be limited to, the undertaking of additional security patrols, enhanced security measures,
3 increased landscaping features, improved signage and street lighting, graffiti removal, and other
4 similar activities and matters and capital improvements all as may be permitted under the PBID Law
5 and as further set forth in the Management District Plan, The boundaries of the District are
6 generally described as follows: Show Case Drive and Century Avenue on the north, El Camino
7 Real on the east, Show Case Drive on the south and Auto Plaza Drive on the west, which area is
8 generally known and referred to as the "San Bernardino Auto Center."
9
Section 3. Assessments of the District shall be levied on the real property, and not on the
10 businesses, within the District which assessments shall be due and payable in the same manner as
11 with other real property general taxes, special property taxes and other assessments as provided in
12 Section 36631, et seq., of the PBID Law. The Council hereby levies and imposes and orders the
13 collection of an annual assessment to be imposed upon properties within the District. Such annual
14 assessments shall be in the dollar amounts as set forth in the Engineer's Report as attached hereto as
15 Exhibit "B",
16
17
18
19
20
21
22
23
24
25
26
27
28
Section 4. The Council does not presently intend to provide for the issuance of bonds to
fund the activities of the District. As an alternative to the issuance of such bonds, the
Redevelopment Agency of the City of San Bernardino ("Agency") shall provide an interest-free
loan to the San Bernardino Auto Center, a non-profit mutual benefit corporation (the "Corporation")
pursuant to that certain Auto Center Property and Business Improvement District Waiver and
Indemnification Agreement by and among the Agency and Clifford R. Cummings, a married man,
Barbara B. Cummings, a married woman, TTL, LLC, a California limited liability company, and
D.T.M. Land Company, LLC, a California limited liability company (the "Agreement"), in the form
as on file with the City Clerk and as additionally attached to the resolution of the Community
Development Commission of the City of San Bernardino (the "Commission") dated April 6, 2009,
approving the Agreement. The Agreement shall be evidenced by a Note made by the Corporation,
payable to the Agency. The District assessment shall be recorded against the properties in the
District. It shall be the responsibility of the City to protect the legal interests of the Agency in
3
P:\Agendas\ResolUlions\Rcsolutions\2009\04-06-09 PBID Formation MCC Reso (Final)_doc
2009-79
1 connection with collecting assessments from the property owners, and to the extent permitted by
2 law, the City shall defend, preserve and protect the interests of the Agency to ensure the payment of
3 assessments due and owing to the Agency, including, but not limited to, approving and
4 implementing procedures to cause the timely payments of assessments to thereby allow for the
5 repayments to the Agency pursuant to the Note, in addition to taking all legal actions, as necessary,
6 to protect the interests of the Agency under the PBID Law,
7
Section 5. The City will rely upon the currently established and existing Corporation to
8 provide the governance of the District as required pursuant to Section 36650, et seq., of the PBID
9 Law, and such Corporation shall provide all reports, take actions and comply with the PBID Law
10 and shall be responsible to implement the Management District Plan and the Engineer's Report to
11 the satisfaction of the City.
12
13
14
15
16
17
18
Section 6. The improvements and activities to be provided in the District will be funded by
the levy of the assessments within the District. The revenue from the levy of assessments within the
District shall not be used to provide improvements or activities outside the District or for any
purpose other than the purposes specified in the Resolution of Intention and in the Management
District Plan and the Engineer's Report.
Section 7. The Council hereby fmds and determines that the property within the area of the
19 District will be benefited by the improvements and activities funded by the assessments.
20
Section 8. The adoption of this Resolution of Formation and recordation of the notice and
21 map pursuant to Section 36627 shall constitute the levy of an assessment in each of the fiscal years
22 referred to in the Management District Plan and the Engineer's Report. The properties within the
23 District shall be subject to any amendments to the PBID Law subsequently adopted by the
24 California legislature,
25
Section 9. This Resolution shall take effect upon its adoption and execution in the manner
26 as required by the City Charter.
27 I I I
28 II /
4
P:\Agendas\Resolutions\Resolutions\2009\04-()6..()9 PSID Formation MCC Re50 (Final)doc
1
2
3
4
5
2009-79
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY
OF SAN BERNARDINO APPROVING THE FORMATION OF AN AUTO
CENTER PROPERTY AND BUSINESS IMPROVEMENT DISTRICT
("DISTRICT"), FIXING THE BOUNDARIES THEREOF AND PROVIDING
FOR THE LEVY OF ASSESSMENTS AND TAKING OTHER ACTIONS IN
CONNECTION THEREWITH (SOUTHEAST INDUSTRIAL PARK AND
IVDA REDEVELOPMENT PROJECT AREAS)
6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
7 Common Council of the City of San Bernardino at a
8 thereof, held on the 6th day of April
9 Council Members: Aves Navs
10 ESTRADA X
-
11 BAXTER -L
12 BRINKER ---1L
13 SHORETT ---L-
14 KELLEY X
-
15 JOHNSON X
16 MC CAMMACK ---'L
17
18
19
joint regular
meeting
, 2009, by the following vote to wit:
Abstain
Absent
a~ /;;. ~
Rachel G. Clark, City Clerk
20 The foregoing Resolution is hereby approved this 7 f1} day of
21
22
23
24
April
,2009.
Approved as to Form:
25
26
27
28
James F. Penman, City Attorney
5
P:\Agendas\ResolutionslResolutions\2009\04-06-09 PBID Formation MeC Reso (Final),doc
2009-79
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
EXHIBIT "A"
MANAGEMENT DISTRICT PLAN
6
P:\AgendasIResolutionslResolutions\2009\04-06-09 PBro Formation MCC Reso (final),doc
2009-79
Exhibit "A"
FI NAL
Auto Center
Property and
Business Improvement District
Management District Plan
San Bernardino, California
January 19,2009
Prepared by:
Kristin Lowell Inc.
Prepared pursuant to the State of California
Property and Business Improvement District Law of 1994
And Article XIIID of the California Constitution
to create a property and business improvement district
2009-79
Auto Center
Property and Business Improvement District
Management District Plan
Table of Contents
Section Number
Paae Number
1. Management District Plan Summary
2. PBID Improvement and Activity Pian
3. PBID Operating Budget
4. Assessment Methodology
5. PBID Governance
6. Implementation TImellne
7. Assessment Roll
1
3
5
6
8
9
10
ATTACHMENTS:
PBID Boundary Map
2009-79
Auto Center
Business Improvement District
FiNAL Management District Pian
January 19. 2009
Page I at 10
SECTION 1: Management District Plan Summary
Developed by a coalition of the auto center property owners, the Auto Center Property
and Business Improvement District (PBID) is a proposed benefit assessment district
designed to improve and convey special benefits to properties within the Auto Center.
The PBID is being established pursuant to the state law; the "Property and Business
Improvement District Law of 1994", as amended, The Auto Center PBID will provide new
services and activities, including; public security and safety, enhanced maintenance,
and marketing activities above and beyond what the City currently provides.
Location: The PBID boundary area is known as the Auto Center off of Highway 215.
There are 5 parcels that are included in the PBID boundary. A map of the proposed
PBID boundary is attached.
Services and Activities Provided:
. MarketIng Activities: Activities to enhance and support the vitality of the
auto dealers and to help them compete in the regional marketplace.
. Clean and Safe Programs: Programs that provide a safer and cleaner
environment for businesses, employees and customers.
Budaet: Total PBID budget for its first year of operation is $243,675. The total 5-year
budget is $1,21B,372.
Method of Financlnq: Levy of assessments upon real property that specially benefit
from the proposed services and activities.
Assessments: Annual assessments are calculated based upon each property's special
benefit received from the identified services and activities and their relative cost. The
assessment is based on the estimated expenses each dealership will pay for these
services in relationship to their lot square footage.
CaD: The PBID budget and assessments may increase by as much as 3% per year to
keep pace with the consumer price index and other program costs. Every year the
Owner's Association will determine an annual budget increase, if any.
Collection: Assessments will appear as a separate line item on the annual County of
San Bernardino Property Tax bills,
City Services: The City of San Bernardino has established a policy to maintain the level
of services that they should be providing within the PBID after the PBID is established.
2009-79
Auto Center
Business Improvement District
FINAL Management District ptan
January 19, 2009
Page 2 of 10
District Formation: PBID formation requires submission of petitions from property owners
representing more than 50% of total assessments. Following a public hearing, if ballots,
weighted by assessments, submitted in opposition to the assessment do not exceed the
ballots submitted in favor of fhe assessments, fhe City Council may authorize the levy of
assessments.
Duration: Per state law, the PBID will have a five year life commencing January 1,2010
and terminating December 31, 2014 unless the property owners within the PBID elect to
renew the District.
Governance: It is recommended, but not required, that the City contract with a non-
profit organization to run the day-to-day operations of the PBID. It is anticipated that
the City will contract with the San Bernardino Auto Center Association to act as the
non-profit organization. The PBID will have a governing board, the Owners Association,
pursuant to Section 36651 of the Streets and Highways Code that will annually review
the PBID budgets and pOlicies within the limitations of the Management District Plan
and file annual reports with the City Council.
The non-profit agency will work closely with the City Council Offices and the City of San
Bernardino.
2009-79
Auto Center
Business Improvement District
RNALManagementD~mct~an
January 19, 2009
Page 3 of 10
Section 2: PBID Improvement and Activity Plan
Auto Center PBID Management District Plan
As determined by area property and business owners, the top priority tor services and
activities within the Auto Center PBID area include:
. Marketing Activities, and
. Clean and Safe Programs
Based upon these findings, the following service and activity categories are
recommended for the PBID. The following narrative provides recommendations for the
PBID's operation. Program activities may be amended in subsequent years within the
following general categories. Final programs and budgets will be subject to the review
and approval of the PBID Owners Association prior to City Council approval.
All of the improvements and activities detailed below are provided only within the
boundaries of the District and provide special benefit to the properties in the boundary
area. All benefits derived from the assessments outlined in this Management District Plan
go only for services directly benefiting the properties in the PBID in increased commerce
and all the other goals and objectives of the PBID. Inasmuch as all services will be
provided to the properties within the District boundaries and no services will be provided
outside the District boundaries, any potential general benefits are intangible and not
quantifiable.
MARKETING ACTIVITIES
Given the economic climate, auto dealers need to set themselves apart in the regional
marketplace to attract the few potential car buyers. The auto dealers need marketing
solutions that reflect the dealer's brand, image and culture while driving traffic and
consumer confidence. PBID funds will be used to provide any and all necessary
marketing efforts and material. The Owners' Association may select from a wide variety
of marketing activities, such as:
. Printed material and flyers
. Reader-board advertising
. Television ads
. Radio spots
. Website creation, or
. Any other marketing activities that the Owner's Association deems necessary.
2009-79
Auto Center
Business Improvement District
FINAL Management District Plan
January 19, 2009
Page 4 of 10
CLEAN AND SAFE PROGRAMS
The other top priority for the Auto Center property owners is enhanced security and
maintenance efforts, The PBID will provide security services, such as vehicle patrol, to the
properties located within the District. The purpose of the increased safety is to prevent,
deter and report illegal activities taking place on the streets, sidewalks, storefronts, and
auto dealer lots. The Program will supplement, not replace, other ongoing police,
security and patrol efforts that the City of San Bernardino provides. The security teams
will maintain communication with the San Bernardino Police Department and will report
illegal activities. The enhanced safety measures will only provide its services within the
PBID boundaries. The benefit to property owners from these services is less vandalism
and increased commercial activity.
In addition to the enhanced security, the auto center property owners have indicated
enhanced maintenance services as another top priority, PBID maintenance programs will
provide enhanced cleaning services, such as, sidewalk sweeping and litter removal,
power washing and scrubbing of sidewalks, graffiti removal. street and car lot lighting, or
any other services the Owner's Association deems necessary. There may also be
landscape maintenance services for all the public space areas, which may include;
landscaped planters. tree maintenance. and seasonal flowers, and street beautification.
2009-79
Auto Center
Business improvement District
FINAL Management District Pian
January 19, 2009
Page 5 of 10
Section 3: PBID Operating Budget
2010 ODerallna Budaet
The following table outlines the PBID maximum assessment operating budget for 2010.
First Year
ACTIVITY Budnet 5 Yr Budaet
Marketing $179,392 $896,958
Clean and Safe $64,283 $321,414
TOTAL PBID BUDGET $243,674 $1,218,372
NOTE: It is the intent of the City of San Bernardino to loan the Auto Center PBID with the
necessary revenues to cover the estimated expenses for the 5 Year budget prior to the
PBID receiving the first year's assessment revenues. The PBID annual assessment
revenues will be used to reimburse the City for the loan.
5-Year ODeratlna Budaet
The following table illustrates the PBID's operating budget for the 5-year life term based
upon the following assumptions:
. The PBID budget and assessments may increase by as much as 3% per year to
keep pace with the consumer price index and other program costs, however it
is not anticipated to happen. The table below shows the budget for the next
five years without an annual increase.
ACTIVITY 2010 2011 2012 2013 2014 TOTAL
$179.39 $179,39 $179,39
Marketing $179,392 $179,392 2 2 2 $896,958
Clean and Safe $64,283 $64,283 $64,283 $64,283 $64,283 $321,414
$243,67 $243,67 $243.67 $1,218,37
TOTAL PBID BUDGET $243 674 $243.674 4 4 4 2
Bond Issuance: No bonds will be issued to finance improvements.
2009-79
Auto Center
Business Improvement District
FINAL Management District Plan
January J 9, 2009
Page60f 10
Section 4: Assessment Methodology
General
This Management District Plan provides for the levy of assessments for the purpose of
providing services and activities that specially benefit real property in the PBID. These
assessments are not taxes for the general benefit of the City, but are assessments for the
services and activities which confer special benefits upon the real property for which
the services and activities are provided.
Assessment Calculation
As discussed in Section 2, there are three activities proposed for the Auto Center PBID;
marketing activities, and clean and safe services. The cost to provide these services is
the estimated expense each auto dealer will expend on these services. The assessment
rate per parcel is based on the demand for service in relation to each parcel's lot
square footage. Lot square footage is relevant to the size of the dealership and its
inventory. The larger the parcel size and inventory the larger the demand for service.
The table below shows each parcel's percentage share of the budget and its
estimated assessment rate per lot square foot.
Assmt Rate
# of Lot per Lot Sq. Ft.
APN Dealership 1 Yr Budaet % ofTolal Square Feet per Year
0141-251-55 Toyota $17,330 7.11% 166,001 $0.09317
0141-251-59 Toyota $34,660 14.22% 117,612 $0.29470
0141-251-60 Mitsubishi/Mazda $52,360 21.50% 121,966 $0.42945
0141-251-61 Scion $34,660 14.22% 113,692 $0.30466
0141-251-74 Nissan $104,644 42.94% 209,959 $0.49640
TOTAL: $243,674 100,00% 749,232
Note: The City of San Bernardino will loan the Auto Center PBID with the necessary
revenues to cover these estimated expenses for the 5-year budget prior to the PBID
receiving the first year's assessment revenues. It is the intent that the PBID annual
assessment revenues will be used to reimburse the City for the loan. Please see Section
7 for the assessments per parcel.
Time and Manner for Collectlna Assessments
As provided by state law, the Auto Center PBID assessment will appear as a separate
line item on the annual San Bernardino County property tax bills, and either paid in one
lump sum or in two equal installments. Laws for enforcement and collection of property
taxes also apply to the PBID assessment.
2009-79
Auto Center
Business Improvement District
FINAL Management District Plan
January 19,2009
Page 7 ofl 0
Disestablishment
state law provides for the disestablishment of a PBID pursuant to an annual process. The
3D-day period begins each year on the anniversary day that the City Council first
establishes the District. Within this annual 3D-day period, if the owners of real property
who pay more than 50 percent of the assessments levied submit a written petition for
disestablishment, the PBID may be dissolved. The City Council will hold a public hearing
on the disestablishment prior to actually doing so.
Duration
Per state law, the PBID will have a five year life commencing January 1, 2010 and
terminating December 31, 2014 unless the property owners within the PBID elect to
renew the District.
2009-79
Auto Center
Business Improvement District
FINAL Management District Plan
January 19, 2009
Page 8 at JO
Section 5: PBID Governance
Consistent with business improvement district legislation throughout the nation,
California's "Property and Business Improvement District Law of 1994", and its
amendments establishes a governance framework that allows property owners who
pay assessments to determine how those assessments are used. The following
components are required within a PBID governing structure.
City Council
Following the submission of petitions from property owners representing more than 50%
of the assessments to be paid, the City Council, upon holding a public hearing on the
proposed District, may elect to form a PBID. The PBID is established by a City Council
resolution. which may include the levy of an assessment on property, if the assessment is
approved in a balloting process.
PS/O Governance
To encourage cost effective operations, maximize stakeholders' accountability and
encourage a unified management structure, it is recommended, but not required, that
the City of San Bernardino contract with a non-profit organization to provide the day-
to-day operations of the PBID. It is anticipated that the City will contract with the San
Bernardino Auto Center Association to act as the non-profit organization. This
organization will hold an election of assessed property owners to act as the governing
board, the Owners' Association. The Owner's Association may be made up of the 4
property owners included in the PBID. The intent of the Owner's Association is to
implernent the services and activities as outlined in the Management District Plan. The
Owners' Association will annually review the PBID budgets and policies within the
lirnitations of the Managernent District Plan and file annuai reports with the City Council.
2009-79
Auto Center
Business Improvement District
RNALManagementD~mct~an
January 19, 2009
Page 9 of 10
Section 6: Implementation Timeline
The Auto Center PBID will have a five year lite trom January 1, 2010 to December 31,
2014. The tollowing schedule is the proposed PBID tormation timeline:
February 17, 2009
- EDA approval
- Initiate petition signatures
- Council adopts Resolution ot Intention
- Ballots are mailed (pursuant to Prop 218)
- Ballot tally and tinal Public Hearing
- Council adopts Resolution ot Establishment
- Initiate Administrative Contract with Owners
Association
- Assessments submitted to County Auditor tor tax roll
January 22, 2009
January 23, 2009
February 2, 2009
February 23, 2009
August 2009
2009-79
Auto Center
Business Improvement District
FINAL Management District Plan
January 19, 2009
Page 10 of 10
Section 7: Assessment Roll
The following table lists the assessment roll for 2010 plus the estimated 5-year assessment
total.
1 Year 5 Year
APN Owner Name Site Add ress Dealership Assessment Assessment
0141-251-55 Cummings, Clifford R S Show Case Dr Toyota $17,330 $66,650
0141-251-59 Cummings, Clifford R 735 Show Case Dr N Toyota $34,660 $173,301
0141-251-60 TTL Lie 645 Auto Center Dr MitsubishUMazda $52,360 $261.696
0141-251-61 Cummings, Clifford R 650 Auto Center Dr Seion $34,660 $173,301
0141-251-74 DTM Land ComDanv Lie 735 Show Case Dr S Nissan $104,644 $523.222
TOTAL ASSESSMENT: $243.674 $1,218,372
2009-79
1 EXHIBIT "B"
2 ENGINEER'S REPORT
3 DATED FEBRUARY 2009
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
7
P:\Agendas\Resolutions\Resolutions\2009\04-06-09 PBID Formation MCC Reso (Final)_doc
2009-79
Exhibit "8"
FINAL
Auto Center
Property and Business
Improvement District
Engineer's Report
San Bernardino, California
February 2009
Prepared by:
Kristin Lowell Inc.
Prepared pursuant to the State of California
Property and Business Improvement District Law of 1994
And Article XII/D of the California Constitution
to create a property-based business improvement district
2009-79
TABLE OF CONTENTS
ENGI NEER'S STATEMENT............................................................................. 1
ENGINEER'S REPORT:
EXHIBIT A: Description of Improvements and Activities........................ 2
EXHIBIT B: Estimate of Cost ......................................................................4
EXHIBIT C: Method of Apportionment..................................................... 5
EXHIBIT D: Assessment Roll ...................................................................... 9
2009-79
Auto Center Business improvement District
Engineer's Report
February 2, 2009
Page 1 ot 9
ENGINEER'S STATEMENT
This Report is prepared pursuant to Section 36600 etseq. ot the California Streets and
Highways Code (the "Property and Business Improvement District Law of 1994" as
amended) (here and after "State Law") and pursuant to the provisions of Article XIIID of
the California Constitution (Proposition 218).
The Auto Center Property-Based Business Improvement District ("BID") is designed to
improve and benefit properties in the Auto Center area of San Bernardino. Every
assessed property within the PBID receives benefit from the enhanced safety and
maintenance programs, and marketing activities. Only those properties within the PBID
shall receive the special benefit of these proposed improvements and activities (Exhibit
A).
The duration for the renewal of the PBID is five (5) years and an estimated budget for the
PBID improvements and activities is set forth in Exhibit B. Assessments may be subject to
an annual increase of up to 3% per year as determined by the Owners' Association.
Funding for the PBID improvements and activities shall be derived from a property based
assessment of each benefited parcel in the PBID. A detailed description of the
methodology for determining the benefit assessment for each parcel is set forth in Exhibit
C.
This Report includes the following attached Exhibits:
EXHIBIT A:
A detailed description of the improvements and activities to be provided
EXHIBIT B:
The estimate of the cost of the improvements and activities
EXHIBIT C: A statement of the method by which the undersigned determined the
amount proposed to be assessed against each parcel, based on benefits to be derived
by each parcel, respectively, from the improvements and activities.
EXHIBIT D: An assessment roll, showing the amount proposed to be specially assessed
against each parcel of real property within this assessment district.
Respectfully submitted,
Terrance E. Lowell, P.E.
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 2 of 9
EXHIBIT A: IMPROVEMENTS AND ACTIVITIES
As determined by area property and business owners, the top priority tor services and
activities within the Auto Center PBID area include: security, maintenance, and
marketing. All ot the services provided such as the security and maintenance services
are services that are over and above the City's baseline of services and are not
provided by the City. These services are not provided outside of the District and
because of their unique nature focusing on the particular needs of each property
within the District provide distinct and special benefits to each of the parcels
throughout the District. For further discussion of special benefit, please refer to Exhibit C.
MARKETING ACTIVITIES
Given the economic climate, auto dealers need to set themselves apart in the regional
marketplace to attract the few potential car buyers, The auto dealers need marketing
solutions that reflect the dealer's brand, image and culture while driving traffic and
consumer confidence. PBID funds will be used to provide any and all necessary
marketing efforts and material. The Owners' Association may select from a wide variety
of marketing activities, such as:
. Printed material and flyers
. Reader-board advertising
. Television ads
. Radio spots
. Website creation, or
. Any other marketing activities that the Owner's Association deems necessary.
CLEAN AND SAFE PROGRAMS
The Auto Center Business Improvement District Safety Program will provide security
services for the property owners located within the District in the form of patrolling
vehicles. The PBID will provide security services, such as vehicle patrol, to the properties
located within the District. The purpose of the increased safety is to prevent, deter and
report illegal activities taking place on the streets, sidewalks, storefronts, and auto
dealer lots. The Program will supplement, not replace, other ongoing police, security
and patrol efforts that the City of San Bernardino provides. The security teams will
maintain communication with the San Bernardino Police Department and will report
illegal activities. The enhanced safety measures will only provide its services within the
PBID boundaries. The benefit to property owners from these services is less vandalism
and increased commercial activity.
In addition to the enhanced security, the auto center property owners have indicated
enhanced maintenance services as another top priority. PBID maintenance programs will
provide enhanced cleaning services, such as, sidewalk sweeping and litter removal.
power washing and scrubbing of sidewalks, graffiti removal. street and car lot lighting, or
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 3 of 9
any other services the Owner's Association deems necessary. There may also be
landscape maintenance services for all the public space areas, which may include:
landscaped planters, tree maintenance, and seasonal flowers, and street beautification.
The enhanced maintenance services are only provided to properties within District
boundaries. The benefit to property owners from these services is a cleaner business
environment and increased commercial activity.
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 4 of 9
EXHIBIT B: ESTIMATE OF COST
2010 Operatina Budaet
The following table outlines the PBID maximum assessment operating budget for 2010.
First Year
ACTIVITY Budaet 5 Yr Budaet
Marketing $179,392 $896,958
Clean and Safe $64,283 $321.414
TOTAL PBID BUDGET $243.674 $1,218,372
NOTE: It is the intent of the City of San Bernardino to loan the Auto Center PBID with the
necessary revenues to cover the estimated expenses for the 5 Year budget prior to the
PB/D receiving the first year's assessment revenues, The PBID annual assessment
revenues will be used to reimburse the City for the loan.
Budaet Notations
1. The PBID budget and assessments may increase by as much as 3% per year to
keep pace with the consumer price index and other program costs, however it is
not anticipated to happen.
2. Accrued interest and delayed payment will be expended in the above
budgeted categories. A change greater than 10% will require City Council
approval.
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 5 of 9
EXHIBIT C: METHOD OF APPORTIONMENT
PBID Boundary
The PBID boundary area is known as the Auto Center off of Highway 215. There are 5
parcels that are included in the PBID boundary. A map of the proposed PBID boundary
is attached.
All of the services provided such as the security and maintenance work are services
that are over and above the City's baseline of services and are not provided by the
City. These services are not provided outside of the District and because of the unique
nature of these services focusing on the particular needs of each property within the
District provide particular and distinct benefits to each of the parcels within the District.
Each property within the District receives special benefits and is assessed regardless of
property use.
In order to ensure that parcels outside of the District will not specially benefit from the
improvements and services funded with the assessment. improvements and services will
only be provided within the boundaries of the District. Specifically, security patrols and
maintenance crews will only patrol and provide services to the properties within the
District, and will not provide services outside of District boundaries. Nor will District
marketing efforts promote activities outside of District boundaries.
Special Benefit
The Property and Business Improvement District Law of 1994, as amended, and the
State Constitution Article XI liD require that assessments be levied according to the
special benefit each assessed parcel receives from the improvements and activities.
All of the improvements and activities detailed below are provided only within the
boundaries of the District and provide no special benefit to the properties outside the
District area. The special benefit must affect the assessed property in a way that is
particular and distinct from its effect on other parcels and that real property in general
and the public at large do not share. The public at large is defined as all members of
the public including those that live, work, and shop within the District and not simply
transient visitors. A General Benefit is defined as a benefit to properties in the District
and in the surrounding community or benefit to the public in general resulting from the
improvement, activity or service to be provided by the assessment levied. Inasmuch as
all services will be provided to the properties within the District boundaries and no
services will be provided outside the District boundaries there are no general benefits.
We determined that the proposed improvements and activities discussed below
provide only special benetit to the real property within the district area. Each of the
programs is designed to meet the goais of each individual parcel; to improve the
appearance and safety, to increase car sales and encourage commerce. A basic
premise of commercial business is that increased pedestrian traffic increases the
economic return to the property. The increase in pedestrian traffic is likely to
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 6 019
encourage commerce whether it be on the first visit or in subsequent visits. All
pedestrian traffic is considered to be potential customers who will become the target
audience for future patronage of retail and business establishments and services, and
the renting of space in commercial and residential buildings. The enhanced BID
services are a special benefit to each parcel because they are intended to increase
the pedestrian traffic.
Markeflna Proarams
This program, as described in Exhibit A, is intended to attract potential car buyers in an
effort to increase car sales. The auto dealers need marketing solutions that retlect the
dealer's brand, image and culture while driving traffic and consumer confidence. PBID
funds will be used to provide any and all necessary marketing efforts and material. This
is in an effort to enhance the value of the properties and encourage car sales. In order
to accomplish this, the PBID proposes a myriad of marketing programs. This program is
designed to specially benefit only those parcels in the District boundaries by attracting
potential car buyers. Therefore, it is our opinion that the marketing programs provide a
special benefit to all parcels in the District area.
Safe and Clean Proarams
This program as described in Exhibit A will provide security and maintenance services
above the base level of services provided by the City. The services the security forces
and maintenance teams provide are specific to the Auto Center area, thus, each
assessed parcel located in the District specially benefits from this enhanced level of
security and maintenance services. The security and maintenance services will not be
delivered to any parcel outside the PBID boundary and are intended to meet the goals
of the BID as discussed above. Therefore, it is our opinion that there is no general
benefit and that the increased level of security and maintenance provides a special
benefif only to the assessed parcels in fhe PBID.
In addition to the special benefits described above for the fhree programs fhe PBID
offers, there are also less fangible reasons why these services provide only a special
benefif to fhose properties within the PBID.
1. All improvements and activities to be provided through the PBID are special
services and are above and beyond the general level of service fhe City
currently provides.
2. All improvements and activities fo be provided through the PBID are designed by
the property owners to increase business revenue and provide special benefifs
thaf may result in increased car sales and annual revenue incomes to fhe
owners of real property within the district.
3. The California State Legislature found that assessmenfs levied for fhe purpose of
providing improvements and promoting activifies that benefit real properfy are
nof taxes for the general benefit of a city, but are assessments for the
improvements and activities which confer special benefifs upon fhe real
property for which fhe improvement and activities are provided. Sfreefs and
Highways Code Section 36601 (d).
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 7 ot 9
Assessment Methodology
Determining the proportionate share of special benefit among the parcels of real
property, including the government owned parcels, within the proposed assessment
district which benefit from the proposed Improvements is the result of a four-step
process:
1. Defining the proposed improvements.
2. Identifying how each assessed parcel specially benefits from the proposed
improvements and activities.
3. Determining the amount of the special benefit each assessed parcel receives in
relation to the other parcels in the district.
4. Apportioning the cost of the proposed improvements and activities to each
assessed parcel based on the special benefit received.
The proposed improvements and activities as outlined in Exhibit A will provide a higher
level of service than the City provides with City funds to those parcels in the PBID area.
Therefore, every parcel in the PBID benefits from the improvements and activities and
will receive enhanced safety and maintenance programs, and marketing activities. The
PBID programs are designed to deliver service to each parcel within the district.
Assessment Factors
The Auto Center property owners and business owners have emphasized that the
assessment formula for the BID must be fair. balanced and have a direct relationship to
benefits received. The state enabling legislation, Section 36632(0) if the Streets and
Highways Code, also states, "Assessments levied on real property...shall be levied on
the basis of the estimated benefit to the real property within the...district."
While all the PBID services will only be provided to the benefiting parcels in the district,
the recommended assessment methodology for the Auto Center BID is to spread the
cost of the improvements and activities to the lot square footage.
Lot square footage is relevant to the highest and best use of a property and will reflect
the long term value implications of the improvement district. Lot square footage is an
indicator to the size of the dealership and its inventory. The larger the parcel size and
inventory the larger the demand for service. Lot square footage is defined as the total
amount of area within the borders of the parcel. The borders of a parcel are defined on
the County Assessor parcel maps.
Assessment Calculation
As discussed in Exhibit A, there are three activities proposed for the Auto Center PBID;
marketing activities, and clean and safe services. The cost to provide these services is
the estimated expense each auto dealer will expend on these services. The assessment
rate per parcel is based on each parcel's lot square footage, The table below shows
each parcel's percentage share of the budget and its estimated assessment rate per
lot square foot.
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 8 of 9
Assmt Rate
# of Lot per Lot Sq.Ft
APN DealershlD 1 Yr Budget % ofTotal Snuare Feet Der Year
0141-251-55 Toyota $17,330 7.11% 186,001 $0.09317
0141-251-59 Toyota $34,660 14.22% 117,612 $0.29470
0141-251-60 MitsubishilMazda $52,380 21.50% 121,968 $0.42945
0141-251-61 Scion $34,660 14.22% 113,692 $0.30486
0141-251-74 Nissan $104644 42.94% 209,959 $0.49840
TOTAL: $243,674 100,00% 749,232
Note: The City of San Bernardino will loan the Auto Center PBID with the necessary
revenues to cover these estimated expenses for the 5-year budget prior to the PBID
receiving the first year's assessment revenues, It is the intent that the PBID annual
assessment revenues will be used to reimburse the City for the loan.
2009-79
Auto Center Business Improvement District
Engineer's Report
February 2, 2009
Page 9019
EXHIBIT 0: ASSESSMENT ROLL
The fallowing table lists the assessment roll for 2010 plus the estimated 5-year assessment
total.
1 Year 5 Year
APN Owner Name Site Address Dealership Assessment Assessment
0141-251-55 Cummings, Clifford R S Show Case Dr T oyola $17,330 $86,650
0141-251-59 Cummings, Clifford R 735 Show Case Dr N T oyola $34,660 $173,301
0141-251-60 TTL Lie 645 Auto Center Dr Mitsubishi/Mazda $52,380 $261,898
0141-251-61 Cummings, Clifford R 650 Auto Center Dr Scion $34,660 $173,301
0141-251-74 DTM Land Comoanv Lie 735 Show Case Dr S Nissan $104,644 $523,222
TOTAL ASSESSMENT: $243.674 $1,218,372