SR 03-26-2019 3F
City Council
Report
City Council Meeting: March 26, 2019
Agenda Item: 3.F
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To: Mayor and City Council
From: Andy Agle, Director, Housing and Economic Development, Economic
Development Division
Subject: Proposed South Lincoln Boulevard Assessment District
Recommended Action
Staff recommends that the City Council:
1) Conceptually approve the draft management plan for the proposed South Lincoln
Boulevard Property-Based Assessment District; and
2) Affirm the City’s financial support for the general benefits associated with the
assessment district of approximately $7,000 to $11,000 per ye ar over a ten-year
period.
Summary
In today’s increasingly competitive commercial market, maintaining and enhancing a
vibrant business district or corridor is increasingly supported by property owner
assessments. In anticipation of upcoming streetscape improvements to the southern
portion of Lincoln Boulevard, from the I-10 Freeway to Ozone Street, staff has been
working with local stakeholders to explore the formation of a property-based
assessment district (PBAD) for South Lincoln Boulevard to provide services that
supplement what is already provided by the City. In response to favorable interest from
engaged property owners, the City’s consultants, P.U.M.A. and KLI Finance, have
prepared a draft management plan for the proposed PBAD. If Council supports the
recommendations described in the draft management plan, including the City’s financial
support for general benefits, staff would work with the property owner steering
committee to commence the PBAD formation process in accordance with Proposition
218, including a petition drive and ballot initiative.
Discussion
In 2012, the California Department of Transportation relinquished control of the
southern portion of Lincoln Boulevard to the City. Since that time, the City has been
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working to address deferred maintenance and collaborating with the community to
revitalize and reimagine Lincoln Boulevard. The efforts led to the adoption of the Lincoln
Neighborhood Corridor Plan (LiNC) in April 2017. LiNC aims to create a more functional
and aesthetically pleasing pedestrian experience by focusing on streetscape
enhancements, beautification, and business improvements. Construction plans for
streetscape and transportation improvements are currently in development, with
construction expected to begin in late 2019 and take 15-18 months to complete.
A goal of LiNC is to pair the City’s investments in streetscape improvements with the
formation of a merchant association, business improvement district (BID) or property-
based assessment district (PBAD) that supports the area through enhanced
maintenance, quality-of-life, and marketing efforts. Santa Monica has several BIDs in
the following commercial areas: Montana Avenue, Pico Boulevar d, Main Street, and
throughout downtown Santa Monica, as well as PBADs that cover the downtown, all of
which provide for marketing, promotion and other enhanced services to businesses and/
or property owners. As a result of extensive outreach efforts, stakeholders and property
owners demonstrated sufficient interest to warrant consideration of a PBAD. The
consultant team was engaged to assess the feasibility of forming a PBAD and to
prepare a management plan.
South Lincoln Boulevard PBAD Draft Management Plan
The South Lincoln Boulevard Property Based Assessment District Draft Management
Plan (Plan) (Attachment A) describes the goals, district boundaries, prospective
services, annual budget, assessments, governance, and duration for the proposed
PBAD for properties fronting Lincoln Boulevard between the I -10 Freeway and the
southern City limit (approximately 17 blocks). To maintain a consistently clean,
welcoming, and attractive streetscape experience, as well as improve pedestrian safety
along the corridor, the PBAD allows property owners to assess themselves to pay for
enhanced cleaning and quality-of-life ambassador services in addition to the base
services provided by the City. Estimated expenditures and revenues for the proposed
PBAD are outlined below.
EXPENDITURES BUDGET % of Budget
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The proposed PBAD assessment methodology is based on building square footage,
linear street frontage, and type of use. Most parcels host a variety of commercial and
auto-related businesses. The commercial uses would be assessed $0.326 cents per
square foot of building area and $16.38 per linear foot of street frontage per year.
Parcels with non-commercial uses, including two multi-family residences, a senior
housing community, an early childhood learning center, and Olympic High School,
would pay a lower assessment rate, since the uses do not benefit from PBAD activities
to the same degree as commercial uses. Residential (less than four residences), non-
profit, government, and school parcels would be assessed at $0.195 cents per building
square foot and $9.99 per linear foot per year. The total annual assessment revenues
are estimated at $342,768.
General benefits, which benefit the public at large, must be separately identified and
quantified. The Plan reflects the engineer’s determination that a portion of the customer
services provided by the PBAD ambassadors would benefit the public at large and
thereby should be classified as general benefit. The annual cost of the general benefit is
estimated at $7,232, approximately two percent of the total budget. To leverage over
$300,000 in private investment, staff recommends that the general benefit portion be
funded by the City as it constitutes a benefit to the general public and is an expense
currently funded by the City for other PBADs.
PBAD assessments appear as a separate line item on the annual Los Angeles County
property tax bills. As with other PBADs in the City, assessment rates would be subject
to annual increases of up to five percent. The duration of the PBAD would be for ten
Environmental Activities –
Clean + Quality-of-Life Ambassadors (80 -120 weekly hrs.) $225,000 64.29%
Economic Enhancements –
Advocacy, Image Enhancement, Admin Costs, and Special Projects $125,000 35.71%
Total Expenditures $350,000 100.00%
REVENUES
Assessment Revenues $342,768 97.93%
Other Revenues (General Benefit) $7,232 2.07%
Total Assessment District Revenues $350,000 100.00%
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years, beginning in January 2021 and continuing through December 31, 2030.
Governance of the PBAD would be managed by a new non-profit owners’ association
with a seven- to eleven-member board.
Next Steps
If Council conceptually approves the draft Plan, property owners would initiate a petition
process to determine if at least 40 percent of property owners, weighted by proposed
assessment amount, support establishing a PBAD. If the petition process is successful,
City staff would conduct a formal Prop 218 ballot vote. At least 50 percent of ballots
received, weighted by proposed assessment amount, are required for adoption of the
PBAD. The City does not own any properties within the proposed PBAD and therefore
is unable to cast a vote of support.
If the proposed PBAD is adopted by property owners, Council approval of a resolution
approving the formation would be required. Assessments would be recorded with the
Los Angeles County Tax Assessor’s Office, and a service and maintenance agreement
between the City and the owners’ association would be drafted to reflect baseline and
enhanced services, as well as the administration fee to recover City costs for collecting
assessments and transferring funds to the PBAD. The City’s administration fee would
be approximately $80 per parcel and adjusted by CPI each year, for a total estimated
revenue to the City of $10,080 for the first year.
Past Council Actions
Meeting Date Description
April 25, 2017 (Attachment A) Adoption of the LiNC Streetscape Plan
November 24, 2015 (Attachment B) Review and Discussion on LiNC Concepts
June 10, 2014 (Attachment C) Approval of Planning Services Related to LiNC
Financial Impacts and Budget Actions
There is no immediate financial impact or budget action necessary as a result of the
recommended action. If the petition and ballot thresholds are met, staff would return to
Council to request budget authority for general benefits.
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Prepared By: Kriss Casanova, Senior Development Analyst
Approved
Forwarded to Council
Attachments:
A. April 25, 2017 Staff Report (Web Link)
B. November 24, 2015 Staff Report (Web Link)
C. June 10, 2014 Staff Report (Web Link)
D. Draft S. Lincoln Blvd. Management Plan
City of Santa Monica, California
February 2019
Prepared by:
Kristin Lowell, Inc. and
Progressive Urban Management Associates
Prepared pursuant to the State of California
Property and Business Assessment District Law of 1994
as modified by the City of Santa Monica Charter,
to create a Property-Based Assessment District, and
Article XIIID of the California Constitution.
South Lincoln Boulevard
Property Based Assessment District
DRAFT Management District Plan
SOUTH LINCOLN BOULEVARD
Property-Based Assessment District
Management District Plan
Table of Contents
Section Number Page Number
1. Executive Summary ........................................................................... 1
2. PBAD Boundary .................................................................................. 4
3. PBAD Activity and Improvement Plan .............................................. 6
4. PBAD Assessment Budget ................................................................ 9
5. Assessment Methodology ............................................................... 10
6. PBAD Governance ............................................................................ 17
7. Implementation Timeline.................................................................. 18
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 1 of 18
SECTION 1: EXECUTIVE SUMMARY
Pursuant to California Streets and Highways Code, the Property and Business Assessment
District Law of 1994, and as modified by the City of Santa Monica Charter, the South Lincoln
Boulevard Property-Based Assessment District is proposed to be established for a ten-year term.
The District’s work program will deliver activities and improvements to improve and convey special
benefits to properties located within the South Lincoln Boulevard PBAD area. The District will
provide both environmental and economic enhancement activities.
Each of the activities is designed to meet the following proposed District goals:
1. Provide a consistently clean, welcoming, and attractive experience along the South Lincoln
corridor,
2. Maximize and leverage benefits from streetscape and pedestrian enhancements planned for
the corridor,
3. Speak with a shared voice on issues relevant to South Lincoln Boulevard,
4. Attract and retain businesses,
5. Improve the quality of life for property owners, businesses, residents and visitors within the
corridor;
6. Enhance properties and lower vacancy rates.
As described in the Management District Plan, it is proposed that the PBAD will provide funding
for enhanced clean and safe services, and special projects and advocacy above and beyond base
services provided by the City of Santa Monica.
Location The district boundary shall include properties fronting the South Lincoln
Boulevard corridor from Interstate 10 (the Santa Monica Freeway) to the
north and the City of Los Angeles boundary (south of Ozone Street) to the
south. Refer to map on page 5.
Services and
Activities
A Welcoming, Attractive and Economically Vital Lincoln Boulevard
corridor: The PBAD will finance improvements and activities that will
improve the Lincoln Boulevard corridor environment for property owners,
residents, businesses, workers and visitors, including:
Environmental Activities – Clean & Quality of Life
Deployment of clean and safe teams to help keep the corridor safe,
address the impacts of homelessness, and maintain a standard level of
cleanliness throughout the corridor. Services may include the
deployment of uniformed ambassadors that may also be specifically
trained to deal with quality of life issues, and maintenance services that
may include litter removal, weed abatement, graffiti removal, power
washing and spot cleaning.
Economic Enhancements – Special Projects & Advocacy
Special projects may include physical improvements, landscaping,
public art, marketing and promotions, special events and other activities
to help attract new investment that furthers the corridor’s appeal as a
destination for unique, authentic and eclectic businesses.
Advocacy to support PBAD activities and improvements, promote a
positive image, and provide research and education to advance policies
favorable for all of the corridor.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 2 of 18
Provide information and services aimed to assist property owners in
recruitment and retention of tenants/businesses.
Budget EXPENDITURES BUDGET % of Budget
Environmental Activities $225,000 64.29%
Economic Enhancements $125,000 35.71%
Total Expenditures $350,000 100.00%
REVENUES
Assessment Revenues $342,768 97.93%
Other Revenues (1) $7,232 2.07%
Total Assessment District Revenues $350,000 100.00%
Note 1-- General Benefit Allowance: An allowance is made for general benefits
that the district may provide to either the parcels outside the district boundary or to
the public at large. Any PBAD services that are found to provide general benefit
cannot be paid for with assessment revenue. A certified engineer has estimated
that the general benefit from services accounts for $7,232 of the estimated budget,
resulting in a total assessment budget of $342,768.
Method of
Financing
Levy of assessments upon real property that benefit from improvements and
activities.
Assessments Annual assessments are based upon an allocation of program costs and a
calculation of building square footage plus linear frontage. Properties with
residential (less than 4 units), school, government and tax-exempt
ownership and uses will pay an adjusted rate. These properties will fully
benefit from environmental services, but they will not benefit from economic
enhancements and their assessments will be adjusted accordingly.
Estimated annual maximum assessment rates per assessable foot for the
first year of the district are as follows:
Land Use
Linear
Frontage
Building
Sq.Ft.
Commercial/Apt/Parking $16.3788 $0.3261
Govt/School/Res/NP $9.9875 $0.1954
Cap Annual assessments may increase no more than 5% per year consistent
with the increase in consumer price index (CPI) and other increases in
program costs. The determination of annual adjustments in assessment
rates will be subject to the review and approval of the Lincoln Boulevard
PBAD Owners’ Association.
City Services The City of Santa Monica will provide an accounting of baseline services
that are currently provided within the District and will continue through the
duration of the district.
Collection PBAD assessments appear as a separate line item on the annual Los
Angeles County property tax bills.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 3 of 18
District
Governance
Decisions related to the implementation of the Management Plan, including
annual work programs, budgets and assessments, will be made by a new
non-profit Owners’ Association. The Owners’ Association will be governed
by a board of directors comprised of a majority of property owners that pay
assessments within the PBAD. A 7- to 11-member board is recommended,
including representation from the following:
All geographic areas served by the PBAD
A variety of property types, including retail, office and residential
Both large and small property owners
At least one business owner that is not a property owner
Additional non-voting ex-officio board members should be considered from
the following partners:
One member of and/or designee from the Santa Monica City Council
A City of Santa Monica staff liaison
District
Creation
California law modified by the City of Santa Monica for PBAD district
formation requires the submission of petitions signed by property owners in
the proposed district who will pay more than 40% of the total assessments
(i.e. petitions must represent more than 40% of the $342,768 to be
assessed). Petitions are submitted to the Santa Monica City Council and
the City will mail ballots to all affected property owners. The majority of
ballots returned, as weighted by assessments to be paid, must be in favor
of the PBAD in order for the City Council to consider approval.
Duration Collection of the first year’s assessments will be included in Los Angeles
County’s 2020-21 tax bill. Services will begin January 1, 2021 and continue
through December 31, 2030. Any subsequent renewal of the district will
require a new management plan, petition and mail ballot process.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 4 of 18
SECTION 2: PBAD BOUNDARY
PBAD Boundary
The District encompasses approximately 17 linear blocks along South Lincoln Boulevard from
Interstate 10 (the Santa Monica Freeway) to the north and the City of Los Angeles boundary
(south of Ozone Street) to the south. Specifically, the district boundary includes all parcels that
front South Lincoln Boulevard both on the west and east sides and any adjacent parcels that are
tied to the same development project.
A map of the proposed district boundary is on the following page.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 5 of 18
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 6 of 18
SECTION 3: PBAD ACTIVITY AND IMPROVEMENT PLAN
Background and Feasibility
As determined by area property and business owners, the top priority for services and activities
within the South Lincoln Boulevard PBAD area include:
Environmental Activities
Economic Enhancements
Based upon these findings, the following service and activity categories will be funded by the PBAD.
The following narrative provides recommendations for the PBAD’s first year of operation. District
activities may be amended in subsequent years within the following general categories. Final
activities and budgets will be subject to the review and approval of the PBAD Owners’ Association
prior to City Council approval.
Environmental Activities
To respond to stakeholder priorities and guiding principles to make South Lincoln Boulevard more
welcoming, clean, safe and beautiful, the PBAD may fund maintenance and quality of life
ambassadors. PBAD environmental activities are intended to improve commerce and quality of
life by making each individually assessed parcel safer, cleaner and more attractive, which will
encourage investment dollars and generate additional pedestrian traffic. The following is a multi-
dimensional approach for providing clean and quality of life services that may consist of, but
necessarily limited to, the following activities.
Maintenance and Quality of Life Ambassadors
One of the top priorities is enhanced maintenance
efforts. In order to deal with cleaning issues, a Clean
Team program will be provided that has a multi-
dimensional approach that may consist of the following
elements. All these services may not be provided as
the maintenance team will focus on spot cleaning on an
as needed basis throughout the district.
Sidewalk Maintenance: Uniformed, radio-
equipped personnel sweep litter, debris, and
refuse from sidewalks, gutters, and other public spaces of the District.
Trash Collection: Collector truck personnel collect trash from sidewalk trash receptacles
as needed. They are also dispatched to collect stolen shopping carts and large bulky items
illegally dumped in the District.
Graffiti Removal: The Clean Team can remove graffiti using solvent and pressure
washing. The District will maintain a zero-tolerance graffiti policy. All tags will aim to be
removed within 48 hours of notification.
Sidewalk Pressure Washing: Pressure wash all sidewalks and public spaces on an as
needed basis with areas of high pedestrian traffic receiving the highest concentration.
Landscape Maintenance: Public landscape areas including tree wells and planters will
be maintained and kept free of litter and weeds.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 7 of 18
Paper Sign and Handbill Removal: Paper signs, stickers and handbills that are attached
to public property, utility boxes, poles and telephones are removed by hand or when
necessary by high-pressure hose.
In addition to the Clean Team, the PBAD will fund Quality of Life Ambassadors that will be
specially trained and on the lookout for issues that negatively impact the S. Lincoln Boulevard
district experience. The purpose of these Ambassadors is to address unwanted activity, such as;
aggressive panhandling, loitering, sit and lie violations, drinking in public, and disruptive behavior.
They will also observe and report to local authorities unwanted behaviors or criminal activity. In
addition, they will also act as hospitality ambassadors acknowledging pedestrians and visitors in
order to provide directions, information or recommendations.
Homeless Outreach
Addressing homelessness and containing disruptive behaviors from street populations is another
top priority among property and business owners, citing concerns with nuisance crimes,
compounding maintenance issues, and creating an intimidating street atmosphere. To assist
homelessness, a multi-faceted approach that combines resources from the business community,
city and social service agencies is proposed. Elements of this initiative that could be supported
by PBAD assessments include Quality of Life Ambassadors trained to address issues of concern
that require more nuance. This may include connecting homeless individuals with local community
service programs and facilitating access to care, social services and housing. These Quality of
Life Ambassadors would train with social service providers to assist in connecting street
populations to appropriate services.
The PBAD’s budget for environmental activities is based upon the following estimated
deployment:
Clean/Quality of Life Ambassadors Frequency
Hours of Deployment per Week 80-120 hours per week
Litter Removal/Pan & Broom Daily
Pressure Washing As needed
Graffiti Removal As needed
Light Landscape/Weeds As needed
Spot Cleaning As needed
Homeless Outreach Daily
Contact with businesses and visitors Daily
Reporting Daily
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 8 of 18
Economic Enhancements
An economic development program is included as a key component to proactively work on filling
vacancies with targeted businesses, and bring more visitors to the area to engage in commercial
or business activities. The following economic activities may include, but are not necessarily
limited to, the following special projects:
Market research and market-based planning to target private investment to strengthen the
marketplace.
Development of a district-wide website.
Business attraction and retention efforts to encourage business development.
Directional/wayfinding signage or themed signage.
Street furniture and amenities, such as benches, kiosks and lighting.
Design and installation of flowering planters and baskets.
Design and installation of art and decorative elements.
Holiday décor or tree lighting.
Urban design and/or planning services to advance beautification efforts.
Other cosmetic enhancements that improve the PBAD’s appearance.
Advocacy and Management
The South Lincoln Boulevard PBAD will be managed by a part-time coordinator that oversees the
District’s services and actively advocates on behalf of the District property owners to ensure that
City and County services and policies support the District. The special benefit to parcels from
these services is increased business revenue and tenant occupancy due to increased commercial
activity and enhanced commerce in part due to the work of the management staff as stated above.
Management staff expenses are allocated according to generally accepted accounting job costing
procedures and are allocated to both the Environmental Activities and Economic Enhancements.
Also included in this budget item are costs to renew the District, conduct a yearly financial review,
City fees, and uncollectible assessments.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 9 of 18
SECTION 4: PBAD ASSESSMENT BUDGET
2020 PBAD Assessment Budget
The following table outlines the PBAD maximum assessment budget for 2020.
EXPENDITURES BUDGET % of Budget
Environmental Activities $225,000 64.29%
Economic Enhancements $125,000 35.71%
Total Expenditures $350,000 100.00%
REVENUES
Assessment Revenues $342,768 97.93%
Other Revenues (1) $7,232 2.07%
Total Revenues $350,000 100.00%
(1) Other non-assessment funding to cover the cost associated with general benefit and budget
adjustments.
Budget Adjustments
Annual assessments may increase no more than 5% per year, consistent with the increase in
consumer price index (CPI) and/or other increases in program costs. The determination of annual
adjustments in assessment rates will be subject to the review and approval of the board of the
Owners’ Association.
10-Year Maximum Budget
The following table illustrates the PBAD’s maximum annual budget for the 10-year life term,
adjusting it by the maximum 5% inflation factor.
Clean & Safe Economic
General
Benefit Total
Year 1 $217,768 $125,000 $7,232 $350,000
Year 2 $228,656 $131,250 $7,594 $367,500
Year 3 $240,089 $137,813 $7,973 $385,875
Year 4 $252,094 $144,703 $8,372 $405,169
Year 5 $264,698 $151,938 $8,791 $425,427
Year 6 $277,933 $159,535 $9,230 $446,699
Year 7 $291,830 $167,512 $9,692 $469,033
Year 8 $306,421 $175,888 $10,176 $492,485
Year 9 $321,742 $184,682 $10,685 $517,109
Year 10 $337,829 $193,916 $11,219 $542,965
Bond Issuance
No bonds will be issued to finance improvements.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 10 of 18
SECTION 5: 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 PBAD. 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 Factors
The method used to determine proportional special benefits are measured by each parcel’s
building square footage plus linear street frontage on Lincoln Boulevard compared to the total
footages of all parcels in the District boundary.
The use of each parcel’s assessable building square footage is the best measure of benefit for
the programs because the intent of the District activities is to improve the cleanliness of each
individual parcel, to increase building occupancy and revenues, to encourage new business
development, to retain and support existing businesses, and to attract ancillary businesses and
services for parcels within the District. Linear Street frontage is relevant to the amount of benefit
each assessed parcel receives from the PBAD activities that are delivered at the street level. This
reflects the fact that services on the street will have the greatest benefit to properties in
relationship to their exposure on the street. That is to say that the more linear frontage a parcel
has, the more benefit it will receive from the services.
Building Square Footage Defined. Building square footage is defined as gross building square
footage as determined by the outside measurements of a building.
Linear Street Frontage Defined. Linear street frontage is defined as the number of linear feet of
each parcel that directly fronts on Lincoln Boulevard. Side street frontage are not assessed as
they will not receive PBAD environmental activities.
Land Use Considerations
All parcels within the PBAD specially benefit from the PBAD activities but not to the same degree.
The proportional special benefit and assessment methodology provides the following land use
considerations for properties used exclusively for single family residential, non-profit, and
government/school parcels:
Single Family Residential, Non-Profit and Government/School: Owner-occupied residential
single family and condominiums, non-profit owned and government/school properties specially
benefit from the PBAD activities but differently than commercial parcels. They will receive special
benefit from environmental activities, and will be assessed fully for them; however, these parcels
will not receive the same special benefit as commercial parcels from the Economic Enhancement
services (i.e. marketing, special projects and economic development) because those uses are not
engaged in commercial or customer attraction activities, thus their assessment will not include
that portion of the assessment. All commercial and mixed-use parcels with residential uses will
be subject to an adjusted assessment rate for the owner-occupied residential square footage of
that building. The commercial square footage for that building will be assessed the commercial
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 11 of 18
assessment rate. Rental residential units (i.e. apartments) are considered income-producing
commercial property and will be assessed at commercial rates, receiving full benefit from all PBAD
services.
Special Benefit Analysis
All special benefits derived from the assessments outlined in this report are for property related
activities directly benefiting each individual assessed parcel in the PBAD. The special benefit
must affect the individual assessable parcel 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. No parcel’s
assessment shall be greater than the special benefits received.
Streets and Highways Code Section 36601(e) states that “Property and Business Assessment
Districts formed throughout this state have conferred special benefits upon properties and
businesses within their districts, and have made those properties and businesses more useful by
providing the following benefits: (1) Crime reduction. A study by the Rand Corporation has
confirmed a 12-percent reduction in the incidence of robbery and an 8-percent reduction in the
total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business
attraction. (4) Business retention. (5) Economic growth. (6) New investments.”
The PBAD’s goal is to fund activities and improvements that provide a cleaner, safer, and more
attractive and economically vibrant environment as outlined in Section 3. The goal of improving
the economic vitality is achieved by improving the safety, cleanliness, and economic vitality of
each specially benefitted parcel in an effort to increase commerce, to increase building occupancy
and revenues, and to attract more customers, employees, tenants, investors and residents.
Specifically, each parcel specially benefits from each of the PBAD activities as defined below.
Environmental Activities
The enhanced cleaning and quality of life activities make the area more attractive for businesses,
customers, residents, and ultimately private investment. When business location decisions are
made, “lower levels of public safety lead to increased uncertainty in decision making and can be
perceived as a signal of a socio-institutional environment unfavorable for investment. Uncertainty
affects the investment environment in general. But in particular, it increases the fear of physical
damage to investment assets (or to people) or their returns…Almost universally, places with lower
crime rates are perceived as more desirable”.1 Once economic investment occurs within the
district, pedestrian traffic and commercial activity will increase.
1 “Accelerating economic growth and vitality through smarter public safety management” IBM Global Business
Services Executive Report, September 2012, pg. 2
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 12 of 18
All parcels will specially benefit from these activities, such as:
Clean and Quality of Life Ambassadors that provide a higher level of maintenance and
safety to property residents, customers, employees and visitors as they pass through the
district;
Connecting the homeless to available resources;
Removing graffiti from buildings to keep the aesthetic appeal uniform throughout the
district;
Maintaining sidewalks in front of each parcel creates a cohesive environment and allow
pedestrians to move freely throughout the district.
Economic Enhancements
These activities are tied to and will specially benefit each assessed commercial parcel by
encouraging business development and investment that generates customer traffic, which directly
relates to increases in commercial activity, filling of vacant storefronts, offices and residential units
and ultimately, increased business revenues from retail and office space. This is a benefit to the
District because it works to improve the positive perception of the District. Decisions on where to
shop, eat or conduct business are largely based on a perception of the place. If these activities
were not communicated it would be a deterrent to pedestrian traffic, business and commerce.
All parcels (excluding residential, non-profit, government/school) will specially benefit from these
activities, such as:
Increased business development efforts that will attract new tenants and investment and
promote mixed-use development that includes retail, office, and housing uses;
Increased communication and marketing to highlight the economic development potential
and unique characteristics of South Lincoln Boulevard to retain existing businesses and
attract new and recurring visitors to live, eat, and work within the district;
Funding for special projects that will enhance the aesthetic environment and placemaking
to create a sense of community.
Residential, non-profit, and government/school parcels as discussed will not specially benefit from
increased commercial activity associated with the marketing and economic development activities
as wells as the special projects. Therefore, these parcels will not be assessed for these services.
Special Benefit Conclusion
Based on the special benefits each assessed parcel receives from the PBAD activities, we
concluded that each of the proposed activities provides special benefits to the real property within
the district, and that each parcel’s assessment is in direct relationship to and no greater than the
special benefits received.
The special benefit to parcels from the proposed PBAD activities and improvements described in
this report is equal to or exceeds the total amount of the proposed assessment. Each individual
assessed parcel’s assessment is no greater than the special benefit it receives from the PBAD
activities.
South Lincoln Boulevard PBAD February 2019
Management District Plan Page 13 of 18
General Benefit Analysis
As required by the State Constitution Article XIIID Section 4(a), the general benefits of an
assessment district must be quantified and separated out so that the cost of the activities that are
attributed to general benefit are deducted from the cost assessed against each specially
benefitted parcel. General benefits are benefits from the PBAD activities and improvements that
are not special in nature, are not “particular and distinct”, and are not over and above the benefits
that other parcels receive. This analysis will evaluate and determine the level of general benefits
that (1) parcels inside of the PBAD, (2) parcels outside of the PBAD, and (3) the public at large
may receive.
General Benefit to Parcels Inside of the PBAD
The PBAD provides funds for activities and improvements that are designed and created to
provide special benefits to each individually assessed parcel within the District. Each individual
assessed parcel will specially benefit from the cleaner and safer public rights-of-way and
economic enhancements, thus 100% of the benefits conferred on these parcels are distinct and
special in nature and that 0% of the PBAD activities provide a general benefit to parcels in the
District boundary.
General Benefit to Parcels Outside of the PBAD
All the PBAD activities and improvements are provided solely to each of the individual assessed
parcels in the South Lincoln PBAD boundary. Each of the PBAD activities is provided to the public
rights-of-way (streets, sidewalks) adjacent to all specially benefitted parcels in the PBAD. In the
case of the South Lincoln Boulevard PBAD the surrounding parcels are primarily residential.
None of the surrounding parcels will directly receive any of the PBAD activities. Any benefits
these parcels may receive are incidental to providing special benefits to the assessed parcels,
and thus any cost associated to the incidental benefits are not reduced from the cost of providing
special benefit.
General Benefit to the Public At Large
In addition to general benefit analysis to the parcels outside of the South Lincoln Boulevard PBAD
boundary, there may be general benefits to the public at large, i.e., those people that are either
in the PBAD boundary and not specially benefitted from the activities, or people outside of the
PBAD boundary that may benefit from the PBAD activities. In the case of the South Lincoln
Boulevard PBAD, the public at large are those people that are within the PBAD boundary that do
not pay an assessment and do not specially benefit from the PBAD activities.
To calculate the general benefit the public at large may receive we determine the percentage of
each PBAD activity budget that may benefit the general public. In this case, the economic
enhancement activities are tailored to benefit and promote each assessed parcel and are not
intended to benefit the general public. If there are any public benefits, they are incidental and
collateral to providing special benefits to the assessed parcels.
By contrast, the environmental activities may benefit the general public to some degree, as the
general public may appreciate the enhanced level of maintenance and security as it passes
through the district. To quantify this, we first determine a general benefit factor for the
environmental activities. The general benefit factor is a unit of measure that compares the special
benefit that the assessed parcels receive compared to the general benefit that the general public
receives. To determine the general benefit factor, we used previous districts that conducted
intercept surveys in San Francisco (Union Square and West Portal) and Los Angeles (Historic
Downtown, Leimert Park, Arts District, Downtown Industrial, Fashion District, and Sherman
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Oaks). The intent of the surveys was to determine what percentage of the general public was just
passing through the district without any intent to engage in commercial activity. The surveys
concluded that on average 1.4% of the respondents were within the district boundary with no
intent to engage in any business activity. Here, since the PBAD is designed to promote a business
and residential climate that encourages development, investment, and commerce, it follows that
the benefits received by these pedestrians do not translate to a special benefit to the assessed
parcels. In other words, based on the results of these surveys it is reasonable to conclude that
1.4% of environmental activities provide general benefits. However, to be conservative and to
account for any variance in district type, size and services provided, we applied a 5.0% general
public benefit factor to account for these variances. The general benefit factor is then multiplied
by the environmental activities percentage of the budget to determine the overall general benefit
for the Clean and Safe activities. The general benefit factor is then multiplied by the District
activity’s budget percentage to determine the overall general benefit factor. The following table
illustrates this calculation.
A B C D E
ENV. ACTIVITY
Budget
Amount % of Budget
General
Benefit
Factor
General Benefit
Percent (B x C)
General Benefit
Allocation (A x D)
Clean/Quality of
Life
Ambassadors $225,000 64.29% 5.00% 3.2143% $7,232
This analysis indicates that $7,232 of the environmental activities may be attributed to general
benefit to the public at large, and must be raised from sources other than special assessments.
General Benefit Conclusion
Using the sum of the three measures of general benefit described above we find that $7,232 or
2.07% of the total budget may be general in nature and will be funded from sources other than
special assessments.
Assessment Calculation
In order to assess for the special benefit each parcel receives from the PBAD activities, two parcel
characteristics are used to equitably allocate the cost of the PBAD activities to each specially
benefitted parcel. The table below summarizes the assessable footages for the linear frontage
and building square footage for each land use type:
Land Use Linear FT Building SF
Commercial 9,779 478,259
Res/NP/Govt/School 1,123 78,865
Total 10,902 557,124
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Calculation of Assessments
Based on the land use type, assessable linear frontage and building square footage, and the
proposed budget, all of which are discussed above, the first year’s maximum annual assessment
rate for each parcel follows:
Land Use Rates Frontage Building
Commercial $16.3788 $0.3261
Res/NP/Govt/School $9.9875 $0.1954
Sample Parcel Assessments
To calculate the assessment for a commercial parcel with a 5,000 square foot building and 100
linear feet, the calculation is as follows:
Linear Frontage: 100 x $16.3788 = .................................... $1,637.88
Building Sq. Ft.: 5,000 x $0.3261 = .................................... $1,630.50
TOTAL ASSESSMENT: ...................................................... $3,268.38
To calculate the assessment for a residential parcel with a 1,500 square foot building and 50
linear feet, the calculation is as follows:
Linear Frontage: 50 x $9.9875 = ........................................... $499.38
Building Sq. Ft.: 1,500 x $0.1954= ........................................ $293.16
TOTAL ASSESSMENT: ......................................................... $792.53
The assessment calculation is the same for every parcel in the South Lincoln PBAD.
Annual Assessment Adjustments
Budget Adjustment
Annual assessments may increase no more than 5% per year, consistent with the increase in
consumer price index (CPI) and increases in program costs. The determination of annual
adjustments in assessment rates will be subject to the review and approval of the Owners’
Association of the South Lincoln Boulevard PBAD.
Time and Manner for Collecting Assessments
As provided by state law, the South Lincoln Boulevard PBAD assessment will appear as a
separate line item on the annual Los Angeles County property tax bills, or by a special manual
bill prepared by the District and either paid in one lump sum or in two equal installments. Laws
for enforcement and collection of property taxes also apply to the PBAD assessment.
Disestablishment
State law provides for the disestablishment of a PBAD pursuant to an annual process. The 30-
day period begins each year on the anniversary day that the City Council first establishes the
District. Within this annual 30-day period, if the owners of real property who pay more than 40%
of the assessments levied submit a written petition for disestablishment, the PBAD may be
dissolved by the City Council. The City Council must hold a public hearing on the proposed
disestablishment before voting on whether or not to disestablish the district.
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Duration
The PBAD will have a ten-year term commencing January 1, 2021 through December 31, 2030.
Any major modifications or new or increased assessments during the term of the district that are
not consistent with the provisions of original Management District Plan will require a new mail ballot
process.
Future Development
As a result of continued development, the District may experience the addition or subtraction of
assessable footage for parcels included and assessed within the District boundaries. The
modification of parcel improvements assessed within the District may then change upwards or
downwards the amount of total footage assessment for these parcels, pursuant to Government
Code 53750, will be prorated to the date they receive the temporary and/or permanent certificate
of occupancy.
In future years, the assessments for the special benefits bestowed upon the included PBAD
parcels may change in accordance with the assessment methodology formula identified in the
Management District Plan and Engineer’s Report provided the assessment rate does not change.
If the assessment formula changes and causes an increase in assessments, then a Proposition
218 ballot will be required for approval of the formula changes.
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SECTION 6: PBAD GOVERNANCE
City Council
Following the submission of petitions from property owners representing more than 40% of the
assessments to be paid, the City Council, upon holding a public hearing on the proposed District,
may elect to form the PBAD. The PBAD is formed by a City Council resolution, including the levy
of an assessment on property, if the assessment is first approved by parcel owners in a balloting
process.
PBAD Governance
Consistent with Business Assessment District legislation throughout the nation, California’s
“Property and Business Assessment District Law of 1994" establishes a governance framework
that allows property owners who pay assessments the ability to determine how the assessments
are used. This Management District Plan may be subject to changes if required by the state of
California or the City of Santa Monica.
South Lincoln Boulevard PBAD
The South Lincoln Boulevard PBAD shall contract with a nonprofit organization that may act as
the Owners’ Association and governing board for the PBAD. The role of the Owners’ Association
is consistent with similar PBADs and management organizations throughout California and the
nation. The Owners’ Association determines budgets, assessment adjustments and monitors
service delivery. As part of the Management Plan, the nonprofit organization oversees the delivery
of day-to-day PBAD activities.
Pursuant to the State of California PBAD legislation, the Owners’ Association Board of Directors
is subject to disclosure and notification guidelines set by the Ralph M. Brown Act and California
Public Records Act when conducting PBAD business.
The PBAD Owners’ Association Board of Directors will represent a cross section of property
owners found throughout the district. The goal and spirit of the board’s composition is to have a
majority of property owners, but also include representatives from businesses, government, and
residents that pay PBAD assessments.
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SECTION 7: IMPLEMENTATION TIMELINE
In order for the PBAD to meet the start-up date of July 1, 2020, the formation needs to adhere to
the following schedule:
Formation Schedule Dates
Petitions distributed to property owners February 2019
Education campaign to obtain signed petitions: presentations,
neighborhood meetings, 40% weighted vote targeting
February – May 2019
City Council accepts petitions; adopts resolution of intention to consider
establishment; sets a public hearing; accepts the Engineer’s Report;
authorizes the mailing of ballots
May 14, 2019
City Council holds public hearing July 9, 2019
City Council accepts certified election results tabulated by the City
Clerk; Adopts Resolution Approving Engineer’s Report and Levying
Assessments; Directs Staff to return to Council for authorization to
enter into agreements necessary to implement the PBAD
July 23, 2019