COMMUNITY BUSINESS IMPROVEMENT DISTRICT (CBID)

2022 ASSESSMENT ENGINEER’S REPORT

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2022 ASSESSMENT ENGINEER’S REPORT

Being established pursuant to the City of Santa Barbara’s Community Benefit Ordinance

(Santa Barbara Municipal Code - Chapter 4.45)

Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates

February 6, 2022
v 3.0

ASSESSMENT ENGINEER’S REPORT

To Whom It May Concern:

I hereby certify to the best of my professional knowledge and experience that each of the identified benefiting properties located within the proposed Coast Village Community Benefit Improvement District ("CVCBID") being established for a five (5) year term will receive a special benefit over and above the benefits conferred on the public at large and that the amount of the proposed assessment is proportional to, and no greater than the benefits conferred on each respective property.

Introduction
This report serves as the “detailed engineer’s report” required by Section 4(b) of Article XIIID of the California Constitution to support the benefit property assessments to be levied within the proposed CVCBID in the City of Santa Barbara, California being established for a five (5) year term. The discussion and analysis contained within this Report constitutes the required “nexus” of rationale between assessment amounts levied and special benefits derived by real properties within the proposed CVCBID.

Background
The CVCBID is a is a property-based benefit assessment type district being established for a five (5) year term pursuant to the City of Santa Barbara’s Community Benefit Ordinance (Santa Barbara Municipal Code - Chapter 4.45. The Ordinance was modeled after Section 36600 et seq. of the California Streets and Highways Code (as amended), also known as the Property and Business Improvement District Law of 1994 (the “Act”). Due to the benefit assessment nature of assessments levied within a community benefit improvement district (“CBID”), district program costs are to be distributed amongst all identified benefiting properties based on the proportionate amount of special program benefit each property is projected to derive from the assessments levied. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportionate to the special benefits expected to be conferred on each assessed property.

SUPPLEMENTAL ARTICLE XIIID SECTION 4(B) CALIFORNIA CONSTITUTION

PROCEDURES AND REQUIREMENTS

Proposition 218, approved by the voters of California in November of 1996, adds a supplemental array of procedures and requirements to be carried out prior to levying a property-based assessment like the CVCBID. These requirements are in addition to requirements imposed by State and local assessment enabling laws. These requirements were “chaptered” into law as Article XIIID Section 4(b) of the California Constitution (hereinafter Article XIIID).

Since Article XIIID provisions will affect all subsequent calculations to be made in the final assessment formula for the CVCBID, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the CVCBID complies with each of these provisions are delineated below.

(Note: All section references below pertain to Article XIII D of the California Constitution):

Finding 1. From Section 4(a): “Identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed”

Boundaries
The proposed CVCBID consists of 5-6 commercial blocks centered primarily along Coast Village Road generally between Olive Mill Road on the east and US Highway 101/just west of Cabrillo Boulevard on the west. The CVCBID includes 115 parcels owned by 94 property owners. See the CVCBID map in Appendix 2 of this Report.

The CVCBID is generally bounded by:

On the south: bounded by the 101 freeway which runs on the south side of the CVCBID for most of Benefit Zone 1 properties and borders the north side of the CVCBID for the remaining Benefit Zone 2 properties.
On the north: in general, the northern boundary of CVCBID is represented by the northern parcel lines for all of the parcels fronting along Coast Village Road.
On the west: The parcels included in Benefit Zone 2 ending at parcel 391-001-000 at the far end of the west side of the CVCBID.
On the east: at Olive Mill Road or the entrance to the CVCBID from Highway 101.

Benefit Zones
The CVCBID consists of two benefit zones. Benefit Zone 1 properties front along Coast Village Road. Parcels that front along both Highway 101 to the south side of in the core area will be classified as Zone 2 parcels, along with those parcels forming the western portion of the District, which are just south of the 101.

CVCBID Boundary Rationale
The CVCBID boundaries are comprised of parcels that showcase an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums.

Northern Boundary
The northern boundary of the proposed CBID commences at parcel 760-1-10-000 at Olive Mill Road and continues westward to include the northern boundary of each parcel fronting Coast Village Road on the northern side to parcel 211-038-000.

The CVCBID will only provide services to the individual assessed parcels within the boundaries; services will not be provided to parcels that are not assessed. No CVCBID programs and services will be provided north of the northern CVCBID boundary.

Western Boundary
The western boundary of the proposed CBID is to be found in Benefit Zone 2, south of the 101 freeway and ends at parcel 391-001-000 on the far west end of Los Palos Way.

Southern Boundary
The southern boundary of the proposed CBID includes all of the parcels fronting along the 101 freeway in Benefit Zone 1 and then continues with the parcels on the north side of Los Palos Way in Benefit Zone 2.

Eastern Boundary
The eastern boundary of the proposed CBID begins includes the two parcels on Olive Mill Road including parcel 760-1-10-000 and parcel 293-007-000.

All identified parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in the Plan and in this Assessment Engineer’s Report. All CVCBID funded services, programs and improvements provided within the above described boundaries shall confer special benefit to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from the CVCBID funded Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve as described in more detail under “Work Plan”, beginning on page 11 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial/residential occupancy rates of parcels and businesses within the CVCBID by improving safety, reducing litter and debris and professionally marketing goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of assessed parcels within the boundaries of the CVCBID.

A list of all parcels included in the proposed CVCBID is shown as Appendix 1, attached to this Report with their respective Santa Barbara County assessor parcel number. The boundary of the proposed CVCBID and parcels within it are shown on the map of the CVCBID attached as Appendix 2 to this Report.

Finding 2. From Section 4(a): “Separate general benefits (if any) from the special benefits conferred on parcel(s). Only special benefits are assessable. “

QUANTITATIVE BENEFIT ANALYSIS
As stipulated in Article XIIID, assessment district programs and activities confer a combination of general and special benefits, but the only program benefits that can be assessed are those that provide special benefit to the assessed properties. For the purposes of this analysis, a “general benefit” is hereby defined as: “A benefit to properties in the area 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”. “Special benefit” as defined by the Article XIIID means a distinct benefit over and above general benefits conferred on real property located in the district.

The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs and services are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums. No parcels within the CVCBID are zoned solely residential. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels and the array of land uses within the boundaries of the CVCBID.

The proposed CVCBID programs, improvements and services and Year 1 budget allocation are as follows:

Year 1 - CVCBID Special Benefit Cost Allocations (Assessment Revenue Only)

BENEFIT ZONECIVIL SIDEWALKSDISTRICT IDENTITY & PLACEMAKINGADMINISTRATION & PROGRAM MANAGEMENTCAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENTCONTINGENCY & RESERVETOTAL%%40.4382%27.9698%18.1972%10.1096%3.2853%100%1$105,530$72,992$47,489$26,383$8,573$260,96787.9418%2$14,470$10,008$6,511$3,617$1,176$35,78212.0582%TOTAL$120,000$83,000$54,000$30,000$9,749$296,749100.00%

Assessed commercial parcels as well as commercial portions of mixed-use parcels are conferred proportionate special benefits from all CVCBID funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. For these parcels, CVCBID programs, services and improvements are designed to increase business volumes, sales transactions, commercial occupancies and rental income. These programs, services and improvements are designed to improve commerce, safety and aesthetic appeal for patrons, visitors and employees of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the array of goods and services available within the CVCBID, all considered necessary in a competitive properly managed business district.

For residential parcels and residential portions of mixed-use parcels within the CVCBID (all located on commercial zoned parcels), it is the opinion of this Assessment Engineer that each of these parcels and uses specially benefit, but differently than commercial type parcels, from CVCBID funded programs and services which are designed to improve the cleanliness, safety, marketability and livability of these parcels and residential units on them. The proportionate special benefits conferred on all residential parcels and units shall be considered in proportion to those conferred on commercial parcels within the CVCBID. For these parcels, CVCBID programs, services and improvements are designed to increase residential rental occupancies and income. These programs, services and improvements are designed to improve safety and aesthetic appeal for tenants, visitors and landlords of these parcels within the CVCBID by improving safety, reducing litter and debris and professionally marketing the availability of residential rental units within the CVCBID and the nearby array of goods, services and activities, all considered necessary in a competitive properly managed contemporary mixed-use business district.

These benefits are particular and distinct to each and every identified and assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

In the case of the CVCBID, the very nature of the purpose of this CBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

While every attempt is made to provide CVCBID services and programs to confer special benefits only to those identified assessed parcels within the CVCBID, Article XIIID stipulates that general benefits exist either by design or unintentional in all assessment districts and that a portion of the program costs must be considered attributable to general benefits and assigned a value. General benefits cannot be funded by assessment revenues.

Empirical assessment engineering analysis throughout California has found that general benefits within a given assessment district tend to range from 2-6% of the total costs. A majority of assessment districts in California for which this Assessment Engineer has provided assessment engineering services in conformance with Article XIIID have used the composite district overlay determinant method of computing general benefits which will be used for the CVCBID. This method of computing the value of general benefit involves a composite of three distinct types of general benefit – general benefit to assessed parcels within the CVCBID, general benefit to the public at large within the CVCBID and general benefit to parcels outside the CVCBID.

General Benefit – Assessed Parcels within the CVCBID

CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID. It is the opinion of this Engineer, based on over 30 years of professional assessment engineering experience, that nearly 100% of benefits conferred on the 115 parcels within the CVCBID are distinct and special but in the case of the CVCBID, it is projected that there are 0.25% general benefits conferred on these parcels. This high ratio of special benefits to general benefits is because the CVCBID funded programs and services are specially geared to the unique needs of each parcel within the CVCBID and are directed specially only to these parcels within the CVCBID. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within the CVCBID as determined by the special benefit assessment formula as it is applied to the unique and varying property characteristics of each parcel. The computed 0.25% general benefit value on the 115 parcels within the CVCBID equates to $748 or (.25% x $296,749).

General Benefits – Outside Parcels

While CVCBID programs and services will not be provided directly to parcels outside the CVCBID boundaries, it is reasonable to conclude that CVCBID services may confer an indirect general benefit on parcels adjacent to the CVCBID boundaries. An inventory of the CVCBID boundaries finds that the CVCBID is immediately surrounded by 35 parcels. Of these 35 parcels, 2 are commercial zoned parcels with commercial uses, 30 are residentially zoned parcels with residential uses and 3 are publicly owned parcels with public uses.

The 35 parcels directly outside the CVCBID boundaries can reasonably be assumed to receive some indirect general benefit as a result of CVCBID funded programs, services and improvements. Based on over 30 years of assessment engineering experience, it is the opinion of this Engineer that a benefit factor of 1.0 be attributed to the 115 parcels within the CVCBID, a benefit factor of 0.05 be attributed to general benefits conferred on the 2 commercial parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID, a benefit factor of 0.01 be attributed to general benefits conferred on the 30 residential parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID and, a benefit factor of 0.01 be attributed to general benefits conferred on the 3 publicly owned parcels and uses located adjacent to or across the street from assessed parcels within the CVCBID. The cumulative dollar value of this general benefit type equates to $1,109 ($258 + $77 + $774) as delineated in the following Table:

Parcel TypeQuantityBenefit FactorBenefit UnitsBenefit PercentBenefit ValueParcels within CVCBD1151.000115.0099.6275%$296,749Commercial parcels outside of CVCBD20.0500.100.0866%$258Public parcels outside of CVCBD30.0100.030.0260%$77Residential use parcels outside of CVCBD300.0100.300.2599%$774TOTAL115.43100.00%$297,859

General Benefit - Public At Large

While the CVCBID funded programs are narrowly designed and carefully implemented to specially benefit the assessed CVCBID parcels and are only provided for the special benefit to each and every assessed parcel within the CVCBID, these programs also provide general benefits to the public at large within the CVCBID.

For CBID type activities, assessment Engineering experience in California has found that generally over 95% of people moving about within CBID boundaries are engaged in business related to assessed parcels and businesses contained on them within a CBID, while the public at large “just passing through” is typically 5% or less.

Based on experience curves and the nature of the proposed CVCBID funded programs and over 30 years of assessment engineering experience, it is the opinion of this Engineer that districtwide general benefit factors for each of the CVCBID funded special benefit program element costs that most likely provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element costs in order to compute the dollar and percent value of districtwide general benefits to the public at large. The total dollar value of this general benefit type, public at large, equates to $3,284 as delineated in the following Table:

ABCEProgram ElementDollar AllocationGeneral Benefit PercentGeneral Benefit FactorGeneral Benefit Value (A x C)CIVIL SIDEWALKS$120,0002.00%0.020$2,400DISTRICT IDENTITY & PLACEMAKING$83,0000.50%0.005$415CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$30,0000.50%0.005$150ADMINISTRATION & PROGRAM MANAGEMENT$54,0000.50%0.005$270CONTINGENCY & RESERVE$9,7490.50%0.005$49TOTAL$296,749$3,284

Composite General Benefit

Based on the general benefit values delineated in the three sections above, the total value of districtwide general benefits conferred on assessed parcels within the CVCBID, on parcels outside the CVCBID, and on the public at large, equates to $5,135 ($742 + $1,109 + $3,284) or 1.701%. For the purposes of this analysis, the districtwide general benefit factor of 1.701% will be rounded up to 2% or $6,056. This leaves a value of 98% assigned to special benefit related costs. The districtwide general benefit value of $6,056 when added to the special benefit value of $296,749 (Year 1 assessments) equates to a total Year 1 program cost of $302,805. Remaining costs that are attributed to districtwide general benefits, will need to be derived from other non-assessment sources.

The program special benefit related cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit related cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

A breakdown of projected special and districtwide general benefits for each year of the 5-year term, assuming a 5% maximum annual assessment rate increase is shown in the following Table:

5-year Special + Districtwide General Benefits
(Assumes 5% max rate increase per year)

YRZONEPROGRAM CATEGORYSPECIAL BENEFITSGENERAL BENEFITSTOTAL BENEFITS% OF TOTALYR 11CIVIL SIDEWALKS$105,530$2,154$107,68440.4382%DISTRICT IDENTITY & PLACEMAKING$72,992$1,490$74,48227.9698%ADMINISTRATION & PROGRAM MANAGEMENT$47,489$969$48,45818.1972%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$26,383$538$26,92110.1096%CONTINGENCY & RESERVE$8,573$175$8,7483.2853%SUBTOTAL$260,967$5,326$266,293100%2CIVIL SIDEWALKS$14,470$295$14,76540.4382%DISTRICT IDENTITY & PLACEMAKING$10,008$204$10,21227.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$6,511$133$6,64418.1972%ADMINISTRATION & PROGRAM MANAGEMENT$3,617$74$3,69110.1096%CONTINGENCY & RESERVE$1,176$24$1,2003.2853%SUBTOTAL$35,782$730$36,512100%1&2CIVIL SIDEWALKS$120,000$2,449$122,44940.4382%DISTRICT IDENTITY & PLACEMAKING$83,000$1,694$84,69427.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$54,000$1,102$55,10218.1972%ADMINISTRATION & PROGRAM MANAGEMENT$30,000$612$30,61210.1096%CONTINGENCY & RESERVE$9,749$199$9,9483.2853%TOTAL YEAR 1$296,749$6,056$302,805100%YRZONEPROGRAM CATEGORYSPECIAL BENEFITSGENERAL BENEFITSTOTAL BENEFITS% OF TOTALYR 21CIVIL SIDEWALKS$110,807$2,262$113,06940.4382%DISTRICT IDENTITY & PLACEMAKING$76,642$1,565$78,20727.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$49,863$1,017$50,88018.1972%ADMINISTRATION & PROGRAM MANAGEMENT$27,702$565$28,26710.1096%CONTINGENCY & RESERVE$9,002$184$9,1863.2853%SUBTOTAL$274,016$5,593$279,609100%2CIVIL SIDEWALKS$15,194$310$15,50440.4382%DISTRICT IDENTITY & PLACEMAKING$10,508$214$10,72227.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$6,837$140$6,97718.1972%ADMINISTRATION & PROGRAM MANAGEMENT$3,798$78$3,87610.1096%CONTINGENCY & RESERVE$1,235$25$1,2603.2853%SUBTOTAL$37,572$767$38,339100%1&2CIVIL SIDEWALKS$126,001$2,572$128,57340.4382%DISTRICT IDENTITY & PLACEMAKING$87,150$1,779$88,92927.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$56,700$1,157$57,85718.1972%ADMINISTRATION & PROGRAM MANAGEMENT$31,500$643$32,14310.1096%CONTINGENCY & RESERVE$10,237$209$10,4463.2853%TOTAL YEAR 2 - 2023$311,588$6,360$317,948100%YRZONEPROGRAM CATEGORYSPECIAL BENEFITSGENERAL BENEFITSTOTAL BENEFITS% OF TOTALYR 31CIVIL SIDEWALKS$116,347$2,375$118,72240.4382%DISTRICT IDENTITY & PLACEMAKING$80,474$1,643$82,11727.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$52,356$1,068$53,42418.1972%ADMINISTRATION & PROGRAM MANAGEMENT$29,087$593$29,68010.1096%CONTINGENCY & RESERVE$9,452$193$9,6453.2853%SUBTOTAL$287,716$5,872$293,588100%2CIVIL SIDEWALKS$15,954$326$16,28040.4382%DISTRICT IDENTITY & PLACEMAKING$11,033$225$11,25827.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$7,179$147$7,32618.1972%ADMINISTRATION & PROGRAM MANAGEMENT$3,988$82$4,07010.1096%CONTINGENCY & RESERVE$1,297$26$1,3233.2853%SUBTOTAL$39,451$806$40,257100%1&2CIVIL SIDEWALKS$132,301$2,701$135,00240.4382%DISTRICT IDENTITY & PLACEMAKING$91,507$1,868$93,37527.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$59,535$1,215$60,75018.1972%ADMINISTRATION & PROGRAM MANAGEMENT$33,075$675$33,75010.1096%CONTINGENCY & RESERVE$10,749$219$10,9683.2853%TOTAL YEAR 3 - 2024$327,167$6,678$333,845100%YRZONEPROGRAM CATEGORYSPECIAL BENEFITSGENERAL BENEFITSTOTAL BENEFITS% OF TOTALYR 41CIVIL SIDEWALKS$122,164$2,494$124,65840.4382%DISTRICT IDENTITY & PLACEMAKING$84,498$1,725$86,22327.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$54,974$1,121$56,09518.1972%ADMINISTRATION & PROGRAM MANAGEMENT$30,541$623$31,16410.1096%CONTINGENCY & RESERVE$9,925$203$10,1283.2853%SUBTOTAL$302,102$6,166$308,268100%2CIVIL SIDEWALKS$16,752$342$17,09440.4382%DISTRICT IDENTITY & PLACEMAKING$11,585$236$11,82127.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$7,538$154$7,69218.1972%ADMINISTRATION & PROGRAM MANAGEMENT$4,187$86$4,27310.1096%CONTINGENCY & RESERVE$1,362$27$1,3893.2853%SUBTOTAL$41,424$845$42,269100%1&2CIVIL SIDEWALKS$138,916$2,836$141,75240.4382%DISTRICT IDENTITY & PLACEMAKING$96,083$1,961$98,04427.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$62,512$1,275$63,78718.1972%ADMINISTRATION & PROGRAM MANAGEMENT$34,728$709$35,43710.1096%CONTINGENCY & RESERVE$11,287$230$11,5173.2853%TOTAL YEAR 4 - 2025$343,526$7,011$350,537100%YRZONEPROGRAM CATEGORYSPECIAL BENEFITSGENERAL BENEFITSTOTAL BENEFITS% OF TOTALYR 51CIVIL SIDEWALKS$128,272$2,619$130,89140.4382%DISTRICT IDENTITY & PLACEMAKING$88,723$1,811$90,53427.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$57,723$1,177$58,90018.1972%ADMINISTRATION & PROGRAM MANAGEMENT$32,068$654$32,72210.1096%CONTINGENCY & RESERVE$10,421$213$10,6343.2853%SUBTOTAL$317,207$6,474$323,681100%2CIVIL SIDEWALKS$17,590$359$17,94940.4382%DISTRICT IDENTITY & PLACEMAKING$12,164$248$12,41227.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$7,915$162$8,07718.1972%ADMINISTRATION & PROGRAM MANAGEMENT$4,396$90$4,48610.1096%CONTINGENCY & RESERVE$1,430$28$1,4583.2853%SUBTOTAL$43,495$887$44,382100%1&2CIVIL SIDEWALKS$145,862$2,978$148,84040.4382%DISTRICT IDENTITY & PLACEMAKING$100,887$2,059$102,94627.9698%CAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENT$65,638$1,339$66,97718.1972%ADMINISTRATION & PROGRAM MANAGEMENT$36,464$744$37,20810.1096%CONTINGENCY & RESERVE$11,851$241$12,0923.2853%TOTAL YEAR 5 - 2026$360,702$7,361$368,063100%

CVCBID WORK PLAN

Overview
The services, programs and improvements to be funded by the CVCBID include Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. The property uses within the boundaries of the CVCBID that will receive special benefits from CVCBID funded programs, services and improvements are currently an array of high-quality restaurants, retailers, office buildings, market rate and affordable housing units, hotels, mixed use apartment units and residential condominiums. Services, programs and improvements provided and funded by the CVCBID are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the CVCBID. The varying programmed service levels in each benefit zone are delineated within each work plan element description.

These special benefits are particular and distinct to each and every identified assessed parcel within the CVCBID and are not provided to non-assessed parcels outside of the CVCBID. These programs, services and improvements will only be provided to each individual assessed parcel within the CVCBID boundaries and, in turn, confer proportionate "special benefits” to each assessed parcel.

The very nature of the purpose of the CVCBID is to fund supplemental programs, services and improvements to assessed parcels within the CVCBID boundaries above and beyond the base line services provided by the City of Santa Barbara. The City of Santa Barbara does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the CVCBID are for services, programs and improvements directly benefiting each individual assessed parcel within the CVCBID. No CVCBID funded services, activities or programs will be provided outside of the CVCBID boundaries.

The program special benefit cost allocations of the CVCBID assessment revenues for Year 1 are shown in the Table on page 14 of this Report. The projected program special benefit cost allocations of the CVCBID assessment revenues for the 5-year CVCBID term, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 15 of this Report.

WORK PLAN DETAILS
The services to be provided by the CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve) are all designed to contribute to the cohesive commercial and residential fabric to ensure economic success and vitality of the CVCBID. The assessed parcels in the CVCBID will specially benefit from the CVCBID programs in the form of increasing commerce and improving economic success and vitality through meeting the CVCBID Goals: to improve safety, cleanliness, beautification, landscaping, livability and to attract and retain businesses and services, generate more pedestrian and visitor traffic and to increase commerce and improve the economic viability of each individual assessed parcel.

The following programs, services and improvements are proposed by the CVCBID to specially benefit each and every individually assessed parcel within the CVCBID boundaries. CVCBID services, programs and improvements will not be provided to parcels outside the CVCBID boundary. Assessment funds generated in each benefit zone shall only be used to provide services which specially benefit individual assessed parcels within that benefit zone.

Civil Sidewalks:
Examples of this category of special benefit services and costs may include, but are not limited to:

Beautification of the CVCBID
Tree and vegetation maintenance (over and above city services)
Maintenance of existing and new public spaces
Installation of and maintenance of landscaping throughout the CVCBID
Periodic sidewalk and gutter sweeping
Periodic sidewalk steam cleaning
Enhanced trash emptying (over and above city services)
Organization and oversight of trash collection & news racks
Timely graffiti removal, within 24 hours as necessary
Possible hiring of contracted professional case workers to respond to the needs of the unhoused population in and around Coast Village Road
Personnel to manage the in-house or contracted maintenance and/or landscaping teams.
Farmers market assistance
Refurbishment of street signs and monuments

CVCBID Identity & Placemaking:
Examples of this category of special benefit services and costs may include, but are not limited to:

Web site development and updating
Social media, public relations firm
Holiday and seasonal decorations
Events such as the Taste of Coast Village
Branding of the Coast Village CBID properties so a positive image is promoted to the public including the development of a new logo
Banner programs
Public art displays
Public space design and improvements
Personnel to manage the in-house or contracted public relations, web site maintenance or social media contractors
Refurbishment of street signs and monuments

Capital Improvements & TRAFFIC MANAGEMENT
Examples of this category of special benefit services and costs may include, but is not limited to:

Mitigating the traffic impact on Coast Village Road when the Highway 101 work begins
In cooperation with City of Santa Barbara Traffic Control department the possible hiring of traffic control officers (approved by the City) to help facilitate traffic on days with heavy vehicular density on Coast Village Road
Facilitating valet services for busy nights in Coast Village Road
Rental of parking lots for convenient parking for visitors on the weekends or busy holidays

Administration & Program Management
Examples of this category of special benefit services and costs may include, but is not limited to:

Staff and administrative costs, contracted or in-house
Directors and Officers and General Liability Insurance
Office related expenses
Rent
Financial reporting and accounting
Legal work

Contingency & Reserve
Examples of this category of special benefit services and costs include, but is not limited to:

Delinquencies, City/County fees, reserves, capital project improvements

In summary, all CVCBID funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the CVCBID boundaries and none will be provided outside of the CVCBID. Each assessed parcel within the CVCBID will proportionately specially benefit from Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve. These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates of assessed parcels within the CVCBID by deterring crime, reducing litter, installing physical improvements and professionally marketing goods, services and spaces available within the CVCBID, all necessary in a competitive properly managed contemporary mixed-use business district. All CVCBID funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Santa Barbara and are only provided for the special benefit of each and every assessed parcel within the boundaries of the CVCBID.

WORK PLAN BUDGET
Each identified assessed parcel within the CVCBID will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of CVCBID funded services provided within each benefit zone. The projected CVCBID program special benefit (assessments) allocation budget for Year 1 is shown in the following Table:

CVCBID Year 1 - Special Benefit Assessment Budget by Zone

BENEFIT ZONECIVIL SIDEWALKSDISTRICT IDENTITY & PLACEMAKINGADMINISTRATION & PROGRAM MANAGEMENTCAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENTCONTINGENCY & RESERVETOTAL%%40.4382%27.9698%18.1972%10.1096%3.2853%100%1$105,530$72,992$47,489$26,383$8,573$260,96787.9418%2$14,470$10,008$6,511$3,617$1,176$35,78212.0582%TOTAL$120,000$83,000$54,000$30,000$9,749$296,749100.00%

In order to carry out the CVCBID programs outlined in the previous section, a Year 1 assessment budget of $296,749 is projected. Since the CVCBID is planned for a 5-year term, projected program costs for future years (Years 2-5) are set at the inception of the CVCBID. While future inflationary and other program cost increases are unknown at this point, a built in maximum increase of 5% per year, commensurate to special benefits conferred on each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year CVCBID term.

Funding carryovers, if any, may be reapportioned the following year for related programs, services and improvements in accordance with The Management District Plan. Detailed annual budgets will be prepared by the Owners’ Association Board and included in the Annual Report for the City Council’s review and approval.

It is recognized that market conditions may cause the cost of providing goods and services to fluctuate from year to year during the 5-year term of the proposed CVCBID. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories, based on such cost fluctuations subject to the review and approval by the Owners’ Association Board. Such reallocation will be included in the Annual Report for the approval by the City of Santa Barbara City Council pursuant to the Streets and Highways Code Section 36650. Any accrued interest or delinquent payments may be expended in any budget category in accordance with The Management District Plan.

A 5-year projected CVCBID special benefit budget is shown in the following Table:

YEARS 1-5 PROJECTED CVCBID ASSESSMENT BUDGET SUMMARY (Special Benefits)
(Assumes 5% max rate increase per year)

YEARBENEFIT ZONECIVIL SIDEWALKSDISTRICT IDENTITY & PLACEMAKINGADMINISTRATION & PROGRAM MANAGEMENTCAPITAL IMPROVEMENTS & TRAFFIC MANAGEMENTCONTINGENCY & RESERVETOTAL%40.4382%27.9698%18.1972%10.1096%3.29%100.00%11$105,530$72,992$47,489$26,383$8,573$260,9672$14,470$10,008$6,511$3,617$1,176$35,782TOTAL$120,000$83,000$54,000$30,000$9,749$296,74921$110,807$76,642$49,863$27,702$9,002$274,0162$15,194$10,508$6,837$3,798$1,235$37,572TOTAL$126,001$87,150$56,700$31,500$10,237$311,58831$116,347$80,474$52,356$29,087$9,452$287,7162$15,954$11,033$7,179$3,988$1,297$39,451TOTAL$132,301$91,507$59,535$33,075$10,749$327,16741$122,164$84,498$54,974$30,541$9,925$302,1022$16,752$11,585$7,538$4,187$1,362$41,424TOTAL$138,916$96,083$62,512$34,728$11,287$343,52651$128,272$88,723$57,723$32,068$10,421$317,2072$17,590$12,164$7,915$4,396$1,430$43,495TOTAL$145,862$100,887$65,638$36,464$11,851$360,702

The CVCBID assessments may increase for each individual parcel each year during the 5-year effective operating period, but not to exceed 5% per year, commensurate to special benefits received by each assessed parcel, and must be approved by the Owners’ Association Board of Directors, included in the Annual Report and adopted by the City of Santa Barbara City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories. The Owners’ Association Board of the Directors (“Property Owners’ Association of the CVCBID) shall determine the percentage increase, if any, to the annual assessment, not to exceed 5% per year. The Owners’ Association Executive Director shall communicate the annual increase to the City each year in which the CVCBID operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Santa Barbara. No bonds are to be issued in conjunction with the proposed CVCBID.

Pursuant to Section 36671 of the Streets and Highways Code, any funds remaining after the 5th year of operation will be rolled over into the renewal budget or returned to stakeholders in accordance with State Law. CVCBID assessment funds may be used to pay for costs related to the following CVCBID renewal term. If the CVCBID is not renewed or terminated for any reason, unencumbered/unexpended funds will be returned to the property owners in accordance with State Law.

Finding 3. From Section 4(a): “(Determine) the proportionate special benefit derived by each parcel in relationship to the entirety of the..........cost of public improvement(s) or the maintenance and operation expenses...........or the cost of the property related service being provided.

Each identified assessed parcel within the CVCBID will be assessed based on property characteristics unique only to that parcel. Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. Civil Sidewalks, District Identity & Placemaking, Capital Improvements & Traffic Management, Administration & Program Management and Contingency & Reserve), it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

The calculated assessment rates are applied to the actual measured parameters of each parcel and thereby are proportional to each and every other identified assessed parcel within the CVCBID as a whole and the Benefit Zone in which it is located. Larger parcels and those with larger buildings and/or street frontages and/or ones located in Zone 1 are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings and/or street frontages and/or located in Zone 2 and thus, are assigned a greater proportionate degree of assessment program and service costs. The proportionality is further achieved by setting targeted formula component weights for the respective parcel by parcel identified property attributes.

The proportionate special benefit cost for each parcel has been calculated based on proportionate formula components and is listed as an attachment to the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) is computed by dividing the individual parcel assessment by the total special benefit program related costs.

Finding 4. From Section 4(a): “No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.”

Not only are the proposed program costs reasonable due to the benefit of group purchasing and contracting which would be possible through the proposed CVCBID, they are also considerably less than other options considered by the CVCBID Formation Advisory Committee. The actual assessment rates for each parcel within the CVCBID directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective building area, land area and street frontage of each parcel within two benefit zones, except as noted herein.

Finding 5. From Section 4(a): “Parcels........that are owned or used by any (public) agency shall not be exempt from assessment..........”

Article XIIID states that “parcels within a District that are owned or used by any agency, the State of California or the United States shall not be exempt from assessment unless the agency can demonstrate by clear and convincing evidence that those publicly-owned parcels in fact receive no special benefit.”

There are currently no publicly owned parcels within the boundaries of the proposed CVCBID. In, the future, should any other parcels be acquired by a public agency, it is the opinion of this Assessment Engineer that there is no clear and convincing evidence that such parcels would not receive special benefits and thus, would not be exempt from assessments nor assessed differently than privately owned parcels.

Finding 6. From Section 4(b): “All assessments must be supported by a detailed engineer’s report prepared by a registered professional engineer certified by the State of California”.

This report serves as the “detailed engineer’s report” to support the benefit property assessments proposed to be levied within the proposed CVCBID.

Finding 7. From Section 4(c): “The amount of the proposed assessment for each parcel shall be calculated (along with) the total amount thereof chargeable to the entire district, the duration of such payments, the reason for such assessment and the basis upon which the amount of the proposed assessment was calculated.”

The individual and total parcel assessments attributable to special property benefits are shown in Appendix 1 to the Management District Plan and this Report. The proposed CVCBID and resultant assessment levies will continue for 5 years and may be renewed again at that time. The reasons for the proposed assessments are outlined in Finding 2 above as well as in the Management District Plan. The calculation basis of the proposed assessment is attributed to building area, land area and street frontage of each CVCBID assessed parcel within two benefit zones, except as noted herein.

Assessment Formula Methodology

Step 1. Select “Basic Benefit Unit(s)”

Background - Assessment Formula Development

The method used to determine special benefits derived by each identified assessed property within a CBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the CVCBID, the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or any combination of these factors. Factor quantities for each parcel are then measured or otherwise ascertained. From these figures, the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography, land uses, development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by a CBID in order to determine any levels of different benefit that may apply on a parcel-by-parcel or categorical basis.

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, administration and ancillary program costs, are estimated. It is noted, as stipulated in Article XIIID Section 4(b) of the California Constitution, and now required of all property-based assessment districts, indirect or general benefit related costs may not be incorporated into the assessment formula and levied on the district properties; only direct or “special” benefits related costs may be used. Indirect or general benefits must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, Article XIIID Section 4(b) of the California Constitution also no longer automatically exempts publicly owned property from being assessed unless the respective public agency can provide clear and convincing evidence that their property does not specially benefit from the programs and services to be funded by the proposed special assessments. If special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to privately owned property assessments. (See page 17 of this Report for discussion regarding publicly owned parcels within the CVCBID).

From the estimated net program costs, the value of a basic benefit unit or “basic net unit cost” can be computed by dividing the total amount of estimated net program costs by the total number of benefit units. The amount of assessment for each parcel can be computed at this time by multiplying the Net Unit Cost times the number of Basic Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionally or “spread” amongst all benefitting properties within the CBID.

The method and basis of spreading program costs varies from one CBID to another based on local geographic conditions, types of programs and activities proposed, and size and development complexity of the district. CBIDs may require secondary benefit zones to be identified to allow for a tiered assessment formula for variable or “stepped-down” benefits derived.

CVCBID Assessment Formula

Based on the specific needs and corresponding nature of the program activities to be funded by the proposed CVCBID (i.e. civil sidewalks, district identity & placemaking, capital improvements & traffic management, administration & program management and contingency & reserve) it is the opinion of this Assessment Engineer that the assessment factors on which to base assessment rates relate directly to the proportionate amount of building area, land area and street frontage (excluding public alleys) of each parcel within two benefit zones, except as noted herein.

The “Basic Benefit Units” will be expressed as a combined function of gross building square footage (Benefit Unit “A”), land square footage (Benefit Unit “B”), street frontage (Benefit Unit “C”), and in the case of residential condo parcels, building square footage (Benefit Unit “D”). Based on the shape of the proposed CVCBID, as well as the nature of the work program, it is determined that all identified properties will gain a direct and proportionate degree of special benefit based on the respective amount of building area, land area and street frontage within two benefit zones, except as noted herein.

In the opinion of this Assessment Engineer, the targeted weight of Zone 1 revenue to match the projected costs of Zone 1 services, should generate approximately 90% of the total CVCBID revenue (87.9418% when adjusted for precise parcel measurements and program costs and service levels).

In the opinion of this Assessment Engineer, the targeted weight of Zone B revenue to match the projected costs of Zone B services, should generate approximately 10% of the total CVCBID revenue (12.0582% when adjusted for precise parcel measurements and program costs and service levels).

The interaction of building area, land area and street frontage quantities is a common method of fairly and equitably spreading special benefit costs to the beneficiaries of CBID funded services, programs and improvements. These factors directly relate to the degree of special benefit each assessed parcel will receive from CVCBID funded activities within each benefit zone.

Building area (Benefit Unit A & D) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on CVCBID funded activities. The combined weight of Units A & D is 33.808625%. Unit A will generate 27.24996% of the overall assessment revenue. Unit D will generate 6.504689% of the overall assessment revenue

Land area (Benefit Unit B) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on CVCBID funded activities. Unit B will generate 40.670852% of the overall assessment revenue.

Street frontage (Benefit Unit C) is a direct measure of each parcel’s corresponding impact or draw on CVCBID funded activities. Unit C will generate 25.520521% of the overall assessment revenue.

Special Assessment Circumstances

1. Internal Structured Parking Building Area
It is the opinion of this Assessment Engineer that building area for private parking within a building shall not be assessed. Public parking, whether internal or external, will be assessed for the building area of such parking as well as the underlying parcel land area and street frontage.

2. Residential Condominiums
There are currently 45 residential condominium units within the CVCBID. It is the opinion of this Assessment Engineer that these residential condominium parcels will proportionately specially benefit from CVCBID funded programs and activities, but differently than commercial parcels and other residential parcels with multiple units on them. As such, based on the development configuration of such units which are generally multi floor buildings with no direct land or street frontage, the assessments for residential condominiums shall be assessed based solely on the internal building area of each residential condominium unit.

3. Multi-Unit Residential (rental)
In the opinion of this Engineer, parcels with multi-unit residential uses (currently 2) within the proposed CVCBID), will proportionately specially benefit from CVCBID funded programs, services and improvements but different than commercial parcels and uses. In the opinion of this Engineer, the level of benefit for the proposed CVCBID funded programs, services and improvements for multi-unit residential use parcels shall be based on the reduced building rate applied to residential condominiums but the same as the respective zone rates of commercial parcels and uses for parcel land area and street frontage.

4. Commercial and Mixed-Use Condominiums
Ground floor commercial condominiums within the CVCBID shall be assessed based on actual land area covered, condominium building area and direct street frontage for each unit. Because such uses are typically developed as part of a multi-floor mixed-use complex, special methodologies are needed to address the levy of assessments on such land uses as follows:

Multi-Floor Commercial Only Condominiums (Upper Floors)

- Building area assessed at respective building area rate

Multi-Floor Mixed-Use Condominiums

- Commercial condo (See # 5 above)

- Residential condo (See # 2 above)

Changes to Building and/or Parcel Size
Any changes in building or parcel size as a result of new construction, demolitions, land adjustments including but not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such building and/or parcel adjustments.

Other Future Development
Other than future maximum rates and the assessment methodology delineated in this Report, per State Law (Government Code Section 53750), future assessments may increase for any given parcel if such an increase is attributable to events other than an increased rate or revised methodology, such as a change in the density, intensity, or nature of the use of land. Any change in assessment formula methodology or rates other than as stipulated in this Plan would require a new Article XIIID ballot procedure in order to approve any such changes.

Step 2. Quantify Total Basic Benefit Units

Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

Year 1 - Assessable Benefit Units

BENEFIT ZONEBLDG AREA (SQ FT)LAND AREA (SQ FT)STREET FRONTAGE (LN FT)RESID CONDO BLDG AREA (SQ FT)# of PARCELS1394,6801,063,6578,085157,322104270,155238,7471,8424,86811TOTAL464,8351,302,4049,927162,190115

Considering all identified specially benefiting parcels within the CVCBID and their respective assessable benefit units, the cumulative assessment revenue by factor and zone are shown in the following Table:

Year 1 - Assessment Revenue

BENEFIT ZONEBLDG AREA ASSMT REVENUELAND AREA ASSMT REVENUESTREET FRONTAGE REVENUERESID CONDO BLDG AREA REVENUETOTAL REVENUE%1$71,042.40$106,365.70$64,680.00$18,878.64$260,966.7487.9418%2$9,821.70$14,324.82$11,052.00$584.16$35,782.6812.0582%TOTAL$80,864.10$120,690.52$75,732.00$19,462.80$296,749.42100.00%123.940198%35.843608%21.796167%6.361812%87.9418%23.309762%4.827244%3.724354%0.196853%12.0582%TOTAL27.249960%40.670852%25.520521%6.558665%100.0000%

Step 3. Calculate Benefit Units for Each Property.
The number of Benefit Units for each identified benefiting parcel within the proposed CVCBID was computed from data extracted from County Assessor records and maps. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel. While it is understood that this data does not represent legal field survey measurements or detailed title search of recorded land subdivision maps or building records, it does provide an acceptable basis for the purpose of calculating property-based assessments. All respective property data being used for assessment computations will be provided to each property owner in the CVCBID for their review. If a property owner believes there is an error on a parcel’s assessed footages, the CVCBID may confirm the data with the Santa Barbara County Assessor’s office. If CVCBID data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the CVCBID assessment may be corrected.

Step 4. Determine Assessment Formula
In the opinion of this Engineer, the assessment formula for the proposed CVCBID is as follows:

Assessment = Building Area (Unit A) Sq Ft x Unit A Rate, plus

Land Area (Unit B) Sq Ft x Unit B Rate, plus

Street Frontage (Unit C) Lin Ft x Unit C Rate

= Residential Condo Building Area (Unit D) Sq Ft x Unit D Rate

Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table on page 21, the assessment rates for each factor and zone are shown as calculated in the Table below:

Year 1 - Assessment Rates

BENEFIT ZONEBLDG AREA ASSMT RATE ($/SQ FT)LAND AREA ASSMT RATE ($/SQ FT)STREET FRONTAGE ASSMT RATE ($/LN FT)RESID CONDO BLDG AREA ASSMT RATE ($/SQ FT)1$0.1800$0.1000$8.0000$0.12002$0.1400$0.0600$6.0000$0.1200

The complete Year 1 assessment roll of all parcels to be assessed by the CVCBID is included in this Plan as Appendix I.

Step 5. Estimate Total CVCBID Costs
The total projected 5-year CVCBID special benefit costs are shown in the Table on page 15 of this Report assuming a maximum 5% increase per year.

Step 6. Separate General Benefits from Special Benefits and Related Costs (Article XIIID)
Total Year 1 special and districtwide general benefit related costs are estimated at $302,805. Districtwide general benefits are factored at 2% of the total benefit value (see Finding 2 of this Report) with special benefits set at 98%. Article XIIID limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit value is computed to be $6.056 with a resultant 98% special benefit limit computed at $296,749. Based on current property data and land uses, this is the maximum amount of Year 1 revenue that can be derived from property assessments from the subject District. All program costs associated with district wide and site/activity specific general benefits will be derived from sources other than CVCBID assessments.

Step 7. Calculate “Basic Unit Cost”
With a YR 1 assessment revenue portion of the budget set at $296,749 (special benefit only), the Basic Unit Costs (rates) are shown earlier in Step 4. Since the CVCBID is proposed for a 5-year term, maximum assessments for future years must be set at the inception of the proposed CVCBID. An annual inflationary assessment rate increase of up to 5%, commensurate to special benefits received by each assessed parcel, may be imposed for future year assessments, on approval by the CVCBID Property Owner’s Association. The maximum assessment rates for the 5-year proposed CVCBID term of are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the proposed CVCBID term.

CVCBID – 5-year Maximum Assessment Rates
(Includes a 5%/Yr. Max Increase)

BENEFIT ZONEBLDG AREA ASSMT RATE ($/SQ FT)LAND AREA ASSMT RATE ($/SQ FT)STREET FRONTAGE ASSMT RATE ($/LN FT)RESID CONDO BLDG AREA ASSMT RATE ($/SQ FT)YEAR 11$0.1800$0.1000$8.0000$0.12002$0.1400$0.0600$6.0000$0.1200YEAR 21$0.1890$0.1050$8.4000$0.12602$0.1470$0.0630$6.3000$0.1260YEAR 31$0.1985$0.1103$8.8200$0.13232$0.1544$0.0662$6.6150$0.1323YEAR 41$0.2084$0.1158$9.2610$0.13892$0.1621$0.0695$6.9458$0.1389YEAR 51$0.2188$0.1216$9.7241$0.14582$0.1702$0.0730$7.2931$0.1458

Step 8. Spread the Assessments

The resultant assessment spread calculation results for each parcel within the CVCBID are shown in the Management District and this Report and were determined by applying the CVCBID assessment formula to each identified benefiting property.

Miscellaneous CVCBID Provisions

Time and Manner of Collecting Assessments:
Assessments shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of Santa Barbara. The CVCBID assessments shall appear as a separate line item on the property tax bills issued by the Santa Barbara County Assessor. The City of Santa Barbara is authorized to collect any assessments not placed on the County tax rolls, or to place assessments, unpaid delinquent assessments, or penalties on the County tax rolls as appropriate to implement the Management District Plan.

Bonds:
No bonds are to be issued in conjunction with this proposed CVCBID.

Duration
As allowed by the Ordinance, the CVCBID will have a five (5) year operational term.

APPENDIX 1 CVCBID
YEAR 1
ASSESSMENT ROLL

APNYear 1 Assessment009-211-012$4,208.30009-211-013$6,035.10009-211-014$4,805.52009-211-035$3,209.52009-211-038$5,472.20009-211-040$13,901.38009-211-043$17,088.54009-212-012$2,350.60009-212-013$989.60009-221-006$6,828.02009-222-010$7,820.44009-222-011$4,783.32009-222-025$19,556.02009-222-027$11,692.76009-230-001$3,490.32009-230-002$6,188.90009-230-031$2,005.90009-230-032$1,331.24009-230-035$3,795.20009-230-037$8,648.30009-230-038$2,664.98009-281-003$5,538.90009-291-001$4,039.16009-291-002$2,564.60009-291-003$3,220.00009-291-004$3,224.00009-291-005$4,697.06009-291-007$7,739.00009-291-008$10,946.80009-291-009$2,751.86009-291-010$2,088.14009-291-011$1,188.40009-291-012$2,063.60009-291-013$7,546.86009-291-019$2,469.52009-291-023$5,907.86009-291-025$1,249.44009-291-027$939.90009-291-029$3,539.20009-291-034$4,278.90009-291-035$4,332.92009-291-036$4,479.24009-291-037$4,682.70009-293-001$3,147.28009-293-002$2,652.70009-293-005$2,768.24009-293-006$2,098.08009-293-007$16,907.38009-530-001$145.08009-530-002$145.08009-530-003$145.08009-530-004$125.64009-530-005$129.24009-530-006$149.64009-530-007$157.56009-530-008$139.80009-530-009$143.76009-530-010$155.16009-530-011$147.60009-530-012$145.08009-540-001$145.08009-540-002$145.08009-540-003$145.08009-540-004$125.64009-540-005$129.24009-540-006$145.08009-540-007$162.72009-540-008$141.72009-540-009$143.76009-540-010$155.16009-540-011$147.60009-540-012$145.08009-540-013$145.08009-550-001$145.08009-550-002$145.08009-550-003$145.08009-550-004$125.64009-550-005$129.24009-550-006$145.08009-550-007$162.72009-550-008$141.72009-550-009$143.76009-550-010$155.16009-550-011$147.60009-550-012$145.08009-550-013$145.08009-730-001$788.98009-730-002$1,861.22009-730-003$1,500.40009-730-004$1,111.20009-730-005$0.00009-740-001$213.60009-740-002$257.28009-740-003$1,003.92009-740-004$521.08009-740-005$488.12009-740-006$889.28009-740-007$236.88009-740-008$235.76009-740-009$254.52009-740-010$2,169.90009-760-001$378.36009-760-002$356.28009-760-003$284.16009-760-004$374.28009-760-005$447.00009-760-006$496.00009-760-007$421.12009-760-008$585.00009-760-009$768.36009-760-010$2,485.50017-391-001$3,821.86017-391-002$1,323.66017-391-003$2,049.92017-391-008$12,016.52

COMMUNITY BUSINESS IMPROVEMENT DISTRICT (CBID)

2022 ASSESSMENT ENGINEER’S REPORT

2022 ASSESSMENT ENGINEER’S REPORT

ASSESSMENT ENGINEER’S REPORT

SUPPLEMENTAL ARTICLE XIIID SECTION 4(B) CALIFORNIA CONSTITUTION

PROCEDURES AND REQUIREMENTS

APPENDIX 1

CVCBID
YEAR 1
ASSESSMENT ROLL

APPENDIX 2

CVCBID BOUNDARY MAP

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COMMUNITY BUSINESS IMPROVEMENT DISTRICT (CBID)

2022 ASSESSMENT ENGINEER’S REPORT

2022 ASSESSMENT ENGINEER’S REPORT

ASSESSMENT ENGINEER’S REPORT

SUPPLEMENTAL ARTICLE XIIID SECTION 4(B) CALIFORNIA CONSTITUTION

PROCEDURES AND REQUIREMENTS

APPENDIX 1

CVCBIDYEAR 1 ASSESSMENT ROLL

APPENDIX 2

CVCBID BOUNDARY MAP

Discover and experience a taste of the good life by the sea!

JOIN US @COAST.VILLAGE.ROAD

CVCBID
YEAR 1
ASSESSMENT ROLL