Manteca City Council
April 2, 2024

1 The Proposed Downtown Manteca
Community Benefit District
(DMCBD)

MANAGEMENT DISTRICT PLAN
Being Established for a 5-year Term Pursuant to
California Streets and Highways Code Section 36600 et seq.

Property & Business Improvement District Act of 1994, as amended MARCH 26, 2024
Corporate Office  710 West Ivy Street  San Diego, CA 92101  888 356-2726  New England Office: 794 Purchase Street  New Bedford, MA  02740 [email protected]  www.newcityamerica.com  Facebook: New City America, Inc.

Exhibit "A" ATTACHMENT 2
2 TABLE OF CONTENTS
I. Management District Plan Summary – 3
II. Downtown Manteca CBD Boundaries – 6
III. Proposed 5-year DMCBD Work Plan and Budget – 9
IV. Proposed DMCBD Assessment Formula – 14
V. Publicly Owned Parcels – 19
VI. DMCBD District Governance – 20
VII. Proposed Rules and Regulation – 20
VIII. Other Items – 20
IX. Implementation Timetable – 21
Appendix 1: Year 1 – CBD Assessment Roll -23
Attachment 1: Certified Assessment Engineer’s Report -
Exhibit "A" ATTACHMENT 2
3 MANAGEMENT DISTRICT SUMMARY
The Downtown Manteca Community Benefit District (DMCBD or District) is a Property and Business Improvement District established for a 5-year period by a consortium of property and business owners within the DMCBD area. The DMCBD was originally discussed in a series of meetings of property owners in Downtown Manteca in the Fall of 2022. Understanding that the timeline for formation in time for Fiscal Year 2024 would be very challenging, property owners felt that the time had come for such a special benefits district and that these services would be needed to accommodate potential new businesses, restaurants, and mixed use develops in Downtown.

The purpose of establishing this DMCBD is to provide and manage supplemental services and improvements for this important, historic, and growing business center, including security, landscaping, cleaning of the public rights of way, beautification, marketing, and administration services, programs, and improvements. The DMCBD is a unique benefit assessment district that will enable the DMCBD property owners and businesses working as a unit, to fund needed property and business-related improvement programs, services, and programs above what is provided by the City of Manteca.

Name: The name of the proposed property assessment district is the Downtown Manteca Property & Business Improvement District, which we will refer to as the Downtown Manteca Community Benefit District throughout the document, (DMCBD).

Location: The proposed DMCBD is in Downtown Manteca to include all of the parcels in and around N. Main Street, Yosemite Avenue, and the Transit Center in Downtown Manteca.

Benefit Zones: There will be one benefit zone within the proposed DMCBD.

Services: Civil Sidewalks, District Identity and Placemaking, Administration/management, and contingency/reserve.

Finance: Benefit assessment of real property (111 parcels and 71 property owners, and no residential condominiums at this point). No bonds shall be issued to fund DMCBD programs.

Budget: DMCBD property assessment revenue for Year 1 is projected to be $ 184,781. It is noted that the Assessment Engineer has determined that general benefits equate to 2% of the total adjusted DMCBD program costs resulting in a gross budget of $ 188,552 including $ 3,771 in general benefits. General benefit costs shall be derived from non-assessment revenue sources such as grants, program income, credits, interest, memberships, and other sources.

Exhibit "A" ATTACHMENT 2
4 Year 1 – PROPOSED BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS) Civil Sidewalks District Identity
and Place Making Administration Contingency/ Reserve TOTAL % 50% 25% 20% 5% 100%
$ $ 92,000 $ 46,000 $ 37,000 $9,781 $ 184,781
Data in the Survey of the proposed District
A special benefits district can only fund services that are over and above what the City of Manteca is currently funding in Downtown. A survey was mailed out in early October 2022 to all property owners in a wide area that was considered the greater downtown district. The priority special benefit services that resulted from the returned surveys include the 6 top issues:

1. The overwhelming majority of respondents believe that Downtown Manteca is “relatively safe, however suffers from an unsafe image.” This is all about controlling the story of Downtown Manteca

2. Responding to the issue of homelessness, panhandling and loitering issues impacting Downtown

3. Supporting new public space designations and management of those public spaces

4. Managing parking in Downtown

5. Funding marketing, promotions, social media, and branding programs for Downtown

6. Funding regular sidewalk and gutter sweeping services in Downtown The data to be used for the assessment methodology in the final plan includes the following:
• 435,1761 in gross building square footage
• 13,321 linear frontage (2.5 miles)
• 1,283,549 in gross lot size
Benefits
“General Benefit” is 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 California State Constitution means a distinct benefit over and above general benefits conferred on real property located in the DMCBD or to the public at large. The general benefits of the proposed DMCBD for the first year will equal $3,771, representing 2% of the combined special and general benefits budget of $188,552.

Formula
There is one benefit zone in the DMCBD. (A map showing the DMCBD boundaries and benefit zones is shown in Chapter 2 of this Plan). Year 1 property assessment rates per parcel are as follows:

Exhibit "A" ATTACHMENT 2
5 YEAR 1 – Downtown Manteca Assessment Rates
Building Square Footage
Annual Costs
Lot Square Footage
Annual Costs
Linear Frontage
Annual Costs
$0.17 per year $0.05 per year` $ 3.50 per year
Annual Cap
Assessment rate increases are capped at a maximum of 5% per year, subject to approval by the DMCBD Owner Association Board of Directors and approval by resolution of the City Council of Manteca. The basis for any annual increase is conditional upon the increasing costs of running the district, including, but not limited to increases in labor costs, insurance costs, vehicle and gas costs, special projects, etc. The assessment budget may be increased by new building square footage additions within the boundaries of the district, which would be over and above annual 5% maximum rate increases.

Establishment
The DMCBD establishment is a two-step process. First, petitions signed by DMCBD property owners representing at least 50% of the total assessment to be levied must be secured and submitted to the City. Based upon this plan, $92,391 in petitions of support must be submitted to the City to initiate the mail balloting procedure as required for property assessment districts as per the Streets and Highway Code PBID Act. Second, property owners will be sent a ballot to vote on the DMCBD establishment. Returned ballots in support of the DMCBD formation must outweigh those in opposition based on the amount of assessment to be levied.

Duration
As allowed by State PBID Law, the District will have a five (5) year operational term from January 1, 2025, to December 31, 2029. The proposed established District operation is expected to begin services on January 1, 2025. If the District is not renewed, services will end on December 31, 2029.

Background
New City America was hired by the City of Manteca in the summer of 2022 to investigate the formation of a new Downtown Manteca Community Benefit District, to be formed under the Property Business Improvement District Act of 1994, (amended), found in Section 36600 of the California Streets and Highway Code. A study and survey sent to property owners confirmed support for the formation of the district to commence services in 2025.

Exhibit "A" ATTACHMENT 2
6 II. Downtown Manteca CBD BOUNDARIES
General
The proposed Downtown Manteca CBD is located along N. Main Street and Yosemite Avenue in the heart of Manteca. The DMCBD includes the historic linear commercial corridor of N. Main Street and is geared to capture the areas with potential new multi-family residential developments, cultural activities and events in Downtown.

All of the property owners within the boundaries have been sent two mailings during this investigation process. The first, mailed in early August 2022, was to determine their support for the establishment of a special benefits district and the response to this survey was used to determine the final boundaries of the proposed district. The second letter, was mailed in early December, it was a property verification form requesting owners to verify the property data that New City America had obtained from the County Assessors records was accurate.

Boundary Description
The Downtown Manteca CBD encompasses approximately 19 blocks.

Benefit Zones
The District consists of one benefit zone.

District Boundary Rationale
The Downtown Manteca CBD boundaries are comprised of the commercial core parcels where the main economic activity of the historic center city is based. The commercial parcels fronting N. Main Street and Yosemite Avenue are the heart of the commercial core of Downtown Manteca. These parcels highlight an array of commercial retailers, service stores, banks and financial centers and a great mix of quality restaurants/bars/cafes.

Northern Boundary
The northern boundary of the Downtown Manteca CBD is defined by the parcels which are located as follows:

Starting with the two parcels on North Main Street near E. North Street, it includes the west side parcel # 217-226-002 and across the street on the east side of North Main Street, includes parcel # 223-091-017. These two parcels will represent the northern boundary of the proposed DMCBD.

No District programs and services will be provided north of the northern District boundary.

Eastern Boundary
The eastern boundary of the Downtown Manteca CBD shall include the following parcels on the north and south side of Yosemite Avenue, on the east side of the intersection of Yosemite and N.

Grand Avenue. Those parcels on the north side of Yosemite include 223-102-012, 233-102-011 and 233-102-010. The parcel on the south side of Yosemite Avenue, at Yosemite Avenue and N.

Grant Avenue includes parcel # 223-020-001. Continuing to the south, parcels running on the Exhibit "A" ATTACHMENT 2
7 eastern edge of the parcels fronting along N. Main Street including #221-020-033, 221-020-032, 221-020-035, 221-020-027 and 221-020-010. On the south side of Moffat Blvd. the Downtown transportation center, parcel # 221-030-025. No District programs and services will be provided east of the eastern District boundary.

Southern Boundary
The southern boundary of the Downtown Manteca CBD shall include the parcels along the railroad tracks consisting of parcels # 217-210-064, 219-400-001, 219-400-007, 219-410-014, 219-410-015 and 221-030-025. No District programs and services will be provided south of the southern District boundary.

Western Boundary
The western boundary of the Downtown Manteca CBD is at the far western end of the City owned parcels at Pierce Avenue and Manteca Avenue including parcels # 217-210-071 and parcel 217- 210-064. No District programs and services will be provided west of the western District boundary.

The Property and Business Improvement District Law of 1994, California Streets & Highway Code § 36632 states, “Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments and shall not be subject to any assessment pursuant to this part.” Summation:

A list of all parcels included in the proposed established DMCBD is shown as Appendix 1, attached to this report identified by their respective San Joaquin County assessor parcel number. The boundary of the proposed established DMCBD is shown on the map to be found on page 8 of this report.

All identified assessed parcels within the above-described boundaries shall be assessed to fund supplemental special benefit programs, services and improvements as outlined in this report and in the Management District Plan. All DMCBD funded services, programs, and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the District boundaries and none will be provided outside of the District boundaries. Each assessed parcel within the DMCBD will proportionately and specially benefit from the District funded programs and services (i.e., Civil Sidewalks, District Identity and Place Making, Administration and Contingency).

These services, programs, and improvements are intended to improve commerce, employment, rents and occupancy rates, and investment viability of individually assessed parcels and businesses on them within the DMCBD. The DMCBD confers special benefits on each individually assessed parcel by reducing crime, improving aesthetics and marketing goods and services available from individually assessed parcels and the businesses on them within the District, all considered supplemental in a competitive properly managed business district.

Exhibit "A" ATTACHMENT 2
8 Exhibit "A" ATTACHMENT 2
9 III. PROPOSED 5-YEAR DOWNTOWN MANTECA CBD WORK PLAN AND BUDGET
Overview
The programs and activities to be funded by the DMCBD will include Civil Sidewalks, District Identity and Place Making, Administration services, and Contingency. The property uses within the boundaries of the District that will receive special benefits from District funded programs, services and improvements are currently a unique mix of retail, office, grocery, restaurant, auto related, the transportation center, civic, and other neighborhood serving retail uses. District funded activities are primarily designed to provide special benefits as described below to identify assessed parcels and array of land uses within the boundaries of the District.

In the case of the DMCBD, the very nature of the purpose of this District is to fund supplemental programs, services and improvements to assessed parcels within the District boundaries above and beyond what is being currently funded either via normal tax supported methods or other funding sources. The City of Manteca does not provide these supplemental programs and services. All benefits derived from the assessments to be levied on assessed parcels within the District are for services, programs and improvements directly benefiting each individual assessed parcel within the District.

The projected program special benefit cost allocation of the District assessment revenues for the 5-year District term assuming a 5% maximum annual assessment rate increase, as approved by the Management Board of Directors as well as the City Council, is shown in the Table on page 11 of this Plan.

Work Plan Details
The special benefit services to be provided by the DMCBD are all designed to contribute to the cohesive commercial fabric and to ensure economic success and vitality of the District. The assessed parcels in the DMCBD will specially benefit from the District programs in the form of increasing commerce, creating demand on business and property and improving economic success and vitality through meeting the CBD goals: to improve sanitation, beautification, landscaping, and to attract new and retain existing businesses and services, and ultimately to increase commerce and improve the economic viability of each individual assessed parcel.

Exhibit "A" ATTACHMENT 2
10 Year 1 – PROPOSED BUDGET (ASSESSMENT REVENUES/SPECIAL BENEFIT COSTS)

CIVIL SIDEWALKS
Examples of this category of special benefit services and costs may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Beautification of the district
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary • Maintenance of existing and new public spaces
• Installation and maintenance of hanging plants, planting flowers throughout the district. • Possibly funding private security to respond to issues of trespassing and petty crime • Personnel to manage in-house or contracted maintenance and/or security teams.

DISTRICT IDENTITY AND PLACEMAKING
Examples of this category of special benefit services and costs may include, but are not limited to:
• Website development and updating
• Traditional events done by the City or businesses within Downtown • Social media, public relations firm
• Enhancing current City holiday and seasonal decorations • Branding of Downtown Manteca CBD 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 in-house or contracted public relations, web site maintenance or social media contractors.

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/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves
Exhibit "A" ATTACHMENT 2
11 Final DMCBD First Year Budget
Category of Services Percentage of Budget
(rounded)
1st Year Allocation
(rounded)
Civil Sidewalks 50% $ 92,000
District Identity and Placemaking 25% $ 46,000
Administration 20% $ 37,000
Contingency/Reserve 5% $ 9,781
Total Budget 100% $184,781

PROGRAM & ACTIVITY BUDGET
Each identified assessed parcel within the DMCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of District funded services provided. The projected District program special benefit (assessment) cost allocation budget for Year 1 is shown in the preceding Table found above.

To carry out the District programs outlined in the previous section, a Year 1 assessment budget of $ 184,781 is projected. Since the District is planned for a 5-year term, projected program costs for future years (Years 2-5) are set at the inception of the District. While future inflationary costs, new building square feet resulting from developments, and other program cost increases are unknown at this point, a built-in maximum increase of 5% of the assessment rate, per annum, commensurate to special benefits received by each assessed parcel, is incorporated into the projected program costs and assessment rates for the 5-year District term.

The District shall adhere to the budget and Management District Plan during the term of the DMCBD. While some variation is permissible to account for unexpected circumstances, the funding allocated to each funding category expressed as a percentage of the total budget, shall not vary by more than 10% of total budget from each year’s percentage in the Management District Plan. Any proposed variation that exceeds 10% of the total budget shall be subject to review and approval from the City Manager’s Office. Any surplus or unspent funds, per category, shall be accumulated year to year over the life of the DMCBD.

A 5-year projected DMCBD budget is shown in the following Table:

Exhibit "A" ATTACHMENT 2
12 YEAR 1-5 PROJECTED DISTRICT ASSESSMENT BUDGET SUMMARY (Special Benefit Costs) (Assumes 5% max assessment rate increase per year)

The Assessment Engineer (see attached Engineer’s Report) has found that the general benefits (i.e. general benefits to assessed parcels within the District, the general public and surrounding parcels outside the DMCBD) of the proposed programs, services and improvements (i.e. Civil Sidewalks, District Identity and Place Making, Administration services, and contingency) represent 2% of the total benefits generated and, in turn, 2% ($3,771) of the total adjusted costs of the DMCBD funded improvements, activities and services provided.

Total Year 1 adjusted costs are estimated at $184,781. General benefits are factored at 2% of the total adjusted costs (see Finding 2 in the attached Engineer’s Report) with special benefits set at 98%. Article XIIID Section 4(b) of the California Constitution limits the levy of property assessments to costs attributed to special benefits only. The 2% general benefit cost is computed to be $ 3,771 with a resultant 98% special benefit limit computed at $188,552. 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 general benefits will be derived from sources other than District assessments. Sample “other” revenue sources are shown in the following Table:

DMCBD First Year Special and General Benefit Revenue Sources Revenue Source Revenue % of Total
District DMCBD First Year Assessments $ 184,781 98%
Grants, donations, sponsors, program income,
etc. $3,771 2%
TOTAL $ 188,552 100%
Year Civil Sidewalks District Identity and
Place Making
Administration Contingency Total
% 50% 25% 20% 5% 100%
1 $ 92,000 $ 46,000 $ 37,000 $ 9,781 $ 184,781
2 $ 96,600 $ 48,300 $ 38,850 $ 10,270 $ 194,020
3 $ 101,430 $ 50,715 $ 40,793 $ 10,784 $ 203,721
4 $ 106,502 $ 53,251 $ 42,832 $ 11,323 $ 213,907
5 $ 111,827 $ 55,913 $ 44,974 $ 11,889 $ 224,602
Exhibit "A" ATTACHMENT 2
13 The DMCBD assessment rates may increase annually for each individual parcel during the 5-year effective operating period. The assessment rate cannot, however, exceed 5% per year, commensurate to special benefits received by each assessed parcel. These rates must be approved by the Owners’ Association Board of Directors as well as be included in the Annual Planning Report to the City. Any increases must be approved by resolution by the City of Manteca City Council. Any accrued interest and delinquent payments will be expended within the budgeted categories.

The Owners’ Association Board of Directors shall determine the percentage increase to the annual assessment and the methodology employed to determine the amount of the increase.

The Owners’ Association Executive Director or staffshall communicate the annual increase to the City each year in which the District operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Manteca.

No bonds are to be issued in conjunction with the proposed established District.

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 renewed budget or returned to stakeholders. District assessment funds may be used to pay for costs related to the following District established term.

If the District is not established or terminated for any reason, unexpended funds will be returned to the property owners in the same proportion in which they were collected.

Manner of Collection
Assessments for the County of San Joaquin Property Tax Year fiscal beginning July 1, 2024 and ending June 30, 2029, shall be collected at the same time and in the same manner as ad valorum taxes paid to the County of San Joaquin (Operation Years 2025 - 2029). The District assessments shall appear as a separate line item on the property tax bills issued by the San Joaquin County Assessor. The City of Manteca 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 this Management District Plan.

Exhibit "A" ATTACHMENT 2
14 IV PROPOSED ASSESSMENT FORMULA
The DMCBD programs and services described in this Management District Plan will be funded through benefit assessments against real property in the DMCBD and non-assessment revenues to fund the costs associated with general benefits conferred on assessed parcels within the District, the public at large and surrounding parcels outside of the DMCBD boundaries. The assessment formula has been developed to ensure that no parcel will be assessed an amount that exceeds the cost of the proportional special benefit that parcel derives from the programs, services, and improvements to be funded by the proposed benefit assessments. The assessment rates are based on the anticipated benefit to be derived by each individual parcel within the boundary of the DMCBD.

Based on the specific needs and corresponding nature of the program activities to be funded by the proposed established DMCBD (i.e., Civil Sidewalks, District Identity and Place Making, Administration services, and Contingency), the assessment factors on which to base assessment rates relate directly to the proportionate amount of land area and street frontage and building square footage within district boundaries.

The “Basic Benefit Units” will be expressed as a combined function of land square footage (Benefit Unit “A”), street frontage (Benefit Unit “B”) and building square footage, (Benefit unit “C”). Based on the shape of the proposed established DMCBD, as well as the nature of the District program elements, it is determined that all identified assessed properties will gain a direct and proportionate degree of special benefit based on the respective amount of land area, street frontage and building square footage.

For the array of land uses within the District, the interactive application of land area, street frontage, and building square footage quantities are a common method of fairly and equitably spreading special benefit costs to these beneficiaries of District funded services, programs, and improvements. Each of these factors directly relates to the degree of special benefit each assessed parcel will receive from District funded activities.

Land area is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on District funded activities. The targeted weight of this factor, land area, should generate approximately 35% of the total first year District revenue.

Street Frontage is a direct measure of the static utilization of each parcel and its corresponding impact or draw on District funded activities, many of which are linear in nature (i.e., Landscaping, Sanitation and Beautification). The targeted weight of this factor, street frontage, should generate approximately 25% of the total District revenue.

Exhibit "A" ATTACHMENT 2
15 Building Square Footage is a direct measure of the current and future improvements to the land area of each parcel and its corresponding impact or draw on District funded activities. The targeted weight of this factor, building square footage, should generate approximately 40% of the total District revenue. Assessing for building square footage is an appropriate gauge of the impact of employees, visitors, shoppers, and clients on a specific parcel.

Commercial Condominium (non-residential portion of mixed-use buildings) - Parcels Defined Ground floor commercial condominiums will be treated as independent “mini” commercial buildings and assessed based on their actual building square footage, the footprint of land they cover or lot size of the commercial condominium, and the amount of direct primary street frontage on the exterior of the building. Ground floor commercial condominiums will pay 100% of the special benefits for their assessment.

Residential Condominium Unit Parcels Defined
Though there are currently no residential condominium units in the DMCBD, we anticipate there will be many over the next decade. Once built, the building square footage will be defined as the livable building square footage within the walls of the condominium residential unit parcel. They are included in a special category to designate their unique special benefits relative to the other commercial parcels within the DMCBD. Unlike the other commercial parcels in the District, including commercially operated apartment buildings, residential condominium parcels are assessed for building square footage only, and are not assessed for linear frontage and lot square footage.

Future residential condominium parcels will be assessed as a separate category. These residential condominium individual parcels will be assessed for their building square footage only at the rate of $0.17 per square foot per year for the first year of the DMCBD, or possibly higher if assessments have been increased annually as provided in this plan and completed in future years. The rationale for assessing future residential condominiums only for the building square footage rate is provided below.

Residential condominium parcels are assessed differently than multi-unit, market rate apartment rental buildings due to the frequency of special benefit services required by each parcel as described below. The multi-unit apartment buildings are commercial properties in which the tenant and property owner have an economic relationship as opposed to residential condominium buildings where individual property owners own separate “air space parcels” on a single floor.

Future residential apartment buildings can be bought or sold just as like commercial buildings whereas residential condominium individual units are separately owned and must be individually bought and sold. Distinctions between residential apartment buildings with tenants and residential condominium building with individual parcel owners are explained as follows:

1. The Davis Sterling Act establishes rules and regulations for residential condominium owners based upon “separate interests” (i.e., ownership rights), as opposed to renters who only have a possessory interest.

Exhibit "A" ATTACHMENT 2
16 2. Generally, residential condominium unit owners demonstrate greater care for their property and concerns about quality-of-life issues due to their investment in real estate.

3. Residential owners have the right to vote in a Proposition 218 hearing, tenants do not have that right.

4. Residential condominium owners are required to contribute to legally established Homeowners Associations to oversee building maintenance, tenants are not.

5. Residential tenants may have their dwelling units sold or have their rent raised arbitrarily due to the lack of ownership of their residential units.

The assessment methodology has been written to confer special benefits to future residential condominium individual assessed parcels since residential condominium owners have expectations about the care and maintenance of the building and its surroundings compared to the interest of residential tenants who have a possessory not an ownership interest.

Data generated from County records and validated by request of owner verification by mail:

Land Area/Lot Square Footage: 1,283,549 square feet of assessable land Linear Frontage: 13,321 linear feet of assessable linear frontage Gross Building Square footage 435,176 feet of assessable building square footage Residential Condominiums 0 square footage
Year 1 – Projected DMCBD Assessment Revenue
Land Area/
Lot Sq. Ft.

Assessment
Linear
Frontage
Assessment
Building Square
Footage Assessment
Total
Revenue $ 64,177 $ 46,624 $ 73,980 $184,781
% of total 35% 25% 40% 100%
The number of Benefit Units for each identified benefiting parcel within the proposed DMCBD was computed from data extracted from County Assessor records and maps as well as property verification forms mailed out to each parcel owner in the proposed District. These data sources delineate current land uses, property areas and dimensions of record for each tax parcel.

The assessment formula for the proposed established DMCBD is as follows:

Assessments = Land Area (Unit A) Sq Ft x Unit A Rate, plus Street Frontage (Unit B) Lin Ft x Unit B Rate, plus
Building Square footage (Unit C) Sq ft x Unit C rate
Exhibit "A" ATTACHMENT 2
17 YEAR 1 – Assessment Rates
Land Area Assessment
Unit A
Linear Frontage
Assessment
Unit B
Building Square Footage
Assessment
Unit C
$ 0.05 per square foot $ 3.50 per linear foot $0.17 per square foot Changes to Frontage, Building or Lot Parcel Size
Any changes in frontage, building, and lot parcel size, because of all three land adjustments including, but are not limited to lot splits, consolidations, subdivisions, street dedications, right of way setbacks shall have their assessment adjusted upon final City approval of such parcel adjustments.

Other Future Development
Other than future maximum rates with the frontage, building or parcel size 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 Proposition 218 ballot procedure to approve any such changes.

DMCBD – 5-year Maximum Assessment Rates
Lot Sq. Ft Linear Frontage Bldg. Sq. Ft. Condo Sq. Ft.

Y1 $ 0.050 $ 3.500 $ 0.170 $ 0.170
Y2 $ 0.053 $ 3.675 $ 0.179 $ 0.179
Y3 $ 0.055 $ 3.859 $ 0.187 $ 0.187
Y4 $ 0.058 $ 4.052 $ 0.197 $ 0.197
Y5 $ 0.061 $ 4.254 $ 0.207 $ 0.207
Exhibit "A" ATTACHMENT 2
18 SAMPLE DMCBD FIRST YEAR ANNUAL ASSESSMENT CALCULATION:

A 5,000 sq. ft. lot with 50 linear feet in Downtown Manteca, street frontage and a 2,500 square foot building
Land/Lot size square footage: 5,000 x $0.05 cents per square foot = $250.00 plus Liner Frontage: 50 linear feet x $3.50 per linear foot = $175.00 plus Building Square Footage 2,500 x $0.17 cents per square foot = $425.00 equals
TOTAL YEAR 1 ASSESSMENT: $ 850.00
Cost Per Month: $ 70.83
Cost Per Day: $ 2.33
FUTURE RESIDENTIAL CONDOMINIUM ASSESSMENTS IN THE DMCBD:

Actual Building square footage of the Residential Condo $0.17 per year x condo building square footage = Annual Assessment

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

Exhibit "A" ATTACHMENT 2
19 V. PUBLICLY OWNED PARCELS
The State Constitution - Article 13D (Proposition 218) 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 21 publicly owned parcels within the District, all of which are identified as assessable and for which special benefit services will be provided. All 21 identified assessed parcels are owned by the City of Manteca, County of San Joaquin and the former Manteca Redevelopment Agency (RDA, now the Successor Agency).

Each of these City owned parcels will directly receive and proportionately specially benefit from improved Civil Sidewalks, District Identity and Place Making, Administration services, and contingency. These 21 identified assessed publicly owned parcels/facilities will specially benefit from District funded programs and services from cleaner and safer facility entrances and street frontages.

In the opinion of the Assessment Engineer, there is no clear and convincing evidence that these 21 publicly owned parcels will not proportionately specially benefit from District services, programs and improvements; therefore, each publicly owned parcel will be assessed at the rates with assessments to be based on the building square footage, lot square footage area and street linear frontage of each parcel.

The Table below lists all publicly owned parcels within the proposed established DMCBD and their Year 1 assessment amounts:

City of Manteca and Publicly owned parcels
APN Public Agency Site Address Year 1 Assessment % of
Total
217-210-100-000 CITY OF MANTECA 309 W YOSEMITE AVE $ 250.00 0.14% 217-210-110-000 CITY OF MANTECA 105 SYCAMORE AVE $ 955.00 0.52% 217-210-120-000 CITY OF MANTECA 224 W CENTER ST $ 1,391.35 0.75% 217-210-160-000 CITY OF MANTECA 126 SYCAMORE AVE $ 469.45 0.25% 217-210-170-000 CITY OF MANTECA 124 SYCAMORE AVE $ 479.50 0.26% 217-210-180-000 CITY OF MANTECA 116 N SYCAMORE AVE $ 501.70 0.27% 217-210-190-000 CITY OF MANTECA 112 N SYCAMORE AVE $ 239.95 0.13% 217-210-280-000 CITY OF MANTECA 113 N MAPLE AVE $ 500.00 0.27% 217-210-340-000 CITY OF MANTECA 142 N MAPLE AVE $ 550.00 0.30% 217-210-350-000 CITY OF MANTECA 140 N MAPLE AVE $ 200.00 0.11% 217-210-360-000 CITY OF MANTECA 138 N MAPLE AVE $ 82.50 0.04% 217-210-500-000 CITY OF MANTECA 113 N MAIN ST $ 43.75 0.02% 217-210-510-000 CITY OF MANTECA 115 N MAIN ST $ 551.30 0.30% 217-210-640-000 CITY OF MANTECA 111 POPLAR AVE $ 1,698.80 0.92% Exhibit "A" ATTACHMENT 2
20 217-210-710-000 CITY OF MANTECA 320 W CENTER ST $ 12,978.34 7.02% 219-400-070-000 CITY OF MANTECA 121 S MAPLE AVE $ 3,195.66 1.73% 219-400-080-000 CITY OF MANTECA 314 W YOSEMITE AVE $ 980.00 0.53% 219-410-120-000 CITY OF MANTECA 130 S MAPLE AVE $ 272.50 0.15% 219-410-130-000 CITY OF MANTECA 201 S MAIN ST $ 272.50 0.15% 221-030-250-000 CITY OF MANTECA 220 MOFFAT BLVD $ 13,588.40 7.35% TOTAL $ 39,200.70 21.22%
221-020-350-000 MANTECA REDEVELOPMENT 123 S GRANT AVE $ 1,758.45 0.95% PUBLIC PARCEL TOTAL $ 40,959.15 22.17%
VI. DMCBD DISTRICT GOVERNANCE
The governance or management of a CBD typically requires an “Owners’ Association” to carry out the CBD services and activities. The state PBID Law (36600 Streets & Highways Code) also requires that the Owners’ Association carry out specific additional functions. This includes preparation of an Annual Report to the City Council on the CBD activities for the past fiscal year and those proposed for the next fiscal year. The Owner’s Association may also recommend to the City Council from time to time, changes to the CBD boundaries, benefit zones, assessment formula or CBD programs and activities, all subject to public notification and, in some cases petition/balloting requirements.

Meetings of the Owners’ Association and its standing Committees shall be subject to the State of California “Brown Act” open meetings and public records access statutes.

VII. PROPOSED RULES AND REGULATION APPLIED TO THE DISTRICT There are no specific rules or regulations applied to this CBD or its Owners’ Association.

VIII. OTHER ITEMS
No bonds will be issued for any DMCBD projects in conjunction with this formation.

Exhibit "A" ATTACHMENT 2
21 IX. TIMELINE
Here is the rough timeline for the establishment of the new Downtown Manteca Community Benefit District to be formed under the PBID Act/Section 36600, Streets and Highway Code Task Responsibility Estimated Timeline
Approval of the plan by the City
Attorney
City Attorney, Barbara Harb, City Manager
Toni Lundgren
Late April 2023
Mail out petitions and summary of
plan to all property owners
New City America and CBD Steering
Committee
Early May
City Council action instructing the
City Manager to sign the petition
and vote in the mail balloting
procedure
Barbara and Toni May
Work on petition drive, hold public
meetings as needed
New City America, City and CBD Steering
Committee
To be determined
Submit 50% threshold of weighted
petitions to Jennifer
Barbara writes up Resolution of Intent and
Staff report, (working with NCA)
Resolution of Intent to
be adopted on adopted
on April 2nd, 2024th
Ballots mailed out by City Clerk
including package of materials and
public hearing date
City Clerk working with NCA staff for contents Need to be mailed out, first class mail, by the
week of April 15th, 2024
to meet the San Joaquin
County Assessor Tax
deadline
Ballots returned to City Clerk by
mail
City Clerk April, May and early
June
Notice posted in local newspaper City Clerk As per government code Public Hearing held, testimony
given, ballots opened and counted
by City Clerk
Staff report submitted by Barbara. If weighted
returned ballots of support exceed weighted
returned ballot opposed City Council can
adopt a Resolution of Formation that allows
for transferring CBD assessments to County
for levy of assessments on the benefitting
property owners
June 4th, 2024, public
hearing date at the City
Council
First meeting of the interim Board
of Directors, including DBA and
DMCBD Steering Committee
members
To be determined if NCA will play this role, up
to City
To be determined, once
the DMCBD has been
formed
Corporation formed for transfer of
funds from the City to the new
Owners Association
Interim Board to determine the name, bylaws,
interim Board members, Interim officers, City
contract, banking relationship, etc
After a contract with the
new management
corporation has been
signed
Funds collected by County (or the
City) and then sent to the new
501c3
City staff Late December 2024,
early January 2025
Exhibit "A" ATTACHMENT 2
22 APPENDIX 1
YR 1

ASSESSMENT ROLL
Exhibit "A" ATTACHMENT 2
23 APN Annual Assessment
217-210-080-000 $2,017.50
217-210-090-000 $1,040.33
217-210-100-000 $250.00
217-210-110-000 $955.00
217-210-120-000 $1,391.35
217-210-140-000 $750.00
217-210-150-000 $996.91
217-210-160-000 $469.45
217-210-170-000 $479.50
217-210-180-000 $501.70
217-210-190-000 $239.95
217-210-200-000 $2,043.68
217-210-210-000 $1,307.50
217-210-220-000 $624.00
217-210-230-000 $708.00
217-210-240-000 $566.61
217-210-250-000 $231.40
217-210-260-000 $1,605.00
217-210-270-000 $918.01
217-210-280-000 $500.00
217-210-300-000 $1,047.74
217-210-310-000 $1,104.52
217-210-320-000 $936.73
217-210-330-000 $4,135.00
217-210-340-000 $550.00
217-210-350-000 $200.00
217-210-360-000 $82.50
217-210-370-000 $1,239.12
217-210-380-000 $794.00
217-210-390-000 $500.00
217-210-400-000 $2,128.00
217-210-410-000 $1,902.75
217-210-420-000 $757.96
217-210-430-000 $1,879.55
217-210-440-000 $447.73
217-210-450-000 $541.04
217-210-460-000 $845.00
217-210-470-000 $2,710.00
217-210-480-000 $250.00
217-210-490-000 $884.20
217-210-500-000 $43.75
217-210-510-000 $551.30
217-210-520-000 $1,305.60
217-210-530-000 $930.00
217-210-540-000 $1,357.77
217-210-550-000 $1,160.00
217-210-560-000 $1,711.28
217-210-570-000 $2,175.29
217-210-580-000 $2,956.91
217-210-590-000 $2,364.15
217-210-640-000 $1,698.80
217-210-650-000 $417.25
217-210-660-000 $592.25
217-210-710-000 $12,978.34
217-225-090-000 $2,575.48
217-226-020-000 $560.00
217-226-030-000 $1,108.00
217-226-040-000 $1,563.40
217-226-050-000 $927.50
217-226-060-000 $966.59
217-226-090-000 $2,781.42
219-400-010-000 $2,453.70
219-400-020-000 $1,312.46
219-400-030-000 $342.50
219-400-040-000 $833.00
219-400-050-000 $1,993.00
219-400-060-000 $2,757.45
219-400-070-000 $3,195.66
219-400-080-000 $980.00
219-410-010-000 $2,370.00
219-410-030-000 $681.47
219-410-040-000 $646.62
219-410-050-000 $675.86
219-410-060-000 $912.50
219-410-070-000 $475.26
219-410-080-000 $2,250.00
219-410-090-000 $2,254.20
219-410-100-000 $4,388.19
219-410-120-000 $272.50
219-410-130-000 $272.50
219-410-140-000 $4,859.40
219-410-150-000 $3,034.71
221-020-010-000 $2,042.50
221-020-100-000 $1,400.11
221-020-270-000 $6,685.80
221-020-320-000 $652.50
221-020-330-000 $3,416.85
221-020-350-000 $1,758.45
221-020-360-000 $5,735.66
221-030-250-000 $13,588.40
223-091-130-000 $1,546.70
223-091-140-000 $1,523.00
223-091-150-000 $1,494.72
223-091-160-000 $3,021.04
223-091-170-000 $468.40
223-091-200-000 $3,137.80
223-101-010-000 $3,191.54
223-101-050-000 $4,266.50
223-101-060-000 $525.00
Exhibit "A" ATTACHMENT
2 24
223-101-070-000 $3,193.97
223-101-080-000 $535.00
223-101-090-000 $1,770.00
223-101-100-000 $541.90
223-101-110-000 $545.00
223-101-120-000 $272.50
223-101-130-000 $442.96
223-101-140-000 $1,525.00
223-101-150-000 $950.70
223-102-100-000 $555.21
223-102-110-000 $1,483.87
223-102-120-000 $292.00
Exhibit "A" ATTACHMENT 2
0 ATTACHMENT 1

DOWNTOWN MANTECA

COMMUNITY BENEFIT DISTRICT
(DMCBD)
ASSESSMENT ENGINEER’S
REPORT
Being Established for a 5-year Term Pursuant to
California Streets and Highways Code Section 36600 et seq.

Property & Business Improvement District Act of 1994, as amended Prepared by
Edward V. Henning
California Registered Professional Engineer # 26549
Edward Henning & Associates
March 25, 2024
v 3.1
Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
1 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 Downtown Manteca Community Benefit District ("DMCBD") being established for 5 years 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 DMCBD in the City of Manteca, California being established for 5 years. 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 DMCBD.

March 25, 2024
3/31/26
Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
2 Background
The DMCBD is a is a property-based benefit assessment type district being established for 5 years pursuant to 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 property and business improvement district (“PBID”) or community benefit district (“CBD”), 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 CBD 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 DMCBD. 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 DMCBD, these supplemental requirements will be taken into account. The key provisions of Article XIIID along with a description of how the DMCBD complies with each of these provisions are delineated below.
(Note: All section references below pertain to Article XIII D of the California Constitution):

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
3 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 district is to be named the Downtown Manteca Property & Business Improvement District or Downtown Manteca Community Benefit District (DMCBD). The proposed DMCBD is in Downtown Manteca and includes all of the parcels in and around N. Main Street, Yosemite Avenue, and the Transit Center in Downtown Manteca. The DMCBD includes the historic linear commercial corridor of N. Main Street and is geared to capture the areas with potential new multi-family residential developments, cultural activities and events in Downtown. The DMCBD encompasses about 19 blocks and includes 111 parcels all of which are assessed. See the DMCBD map in Appendix 2 of this Report.

District Boundary Rationale
The DMCBD boundaries are comprised of the commercial core parcels where the main economic activity of the historic center city is based. The commercial parcels fronting N. Main Street and Yosemite Avenue are the heart of the commercial core of Downtown Manteca. These parcels highlight an array of commercial retailers, service stores, banks, financial centers and a mix of restaurants/bars/cafes.

Northern Boundary
The northern boundary of the DMCBD is defined by the parcels which are located as follows:

Starting with the two parcels on North Main Street near E. North Street, it includes the west side parcel # 217-226-002 and across the street on the east side of North Main Street, includes parcel # 223-091- 017. These two parcels will represent the northern boundary of the proposed DMCBD. No District programs and services will be provided north of the northern District boundary.

Eastern Boundary
The eastern boundary of the Downtown Manteca CBD shall include the following parcels on the north and south side of Yosemite Avenue, on the east side of the intersection of Yosemite and N. Grand Avenue. Those parcels on the north side of Yosemite include 223-102-012, 233-102-011 and 233-102- 010. The parcel on the south side of Yosemite Avenue, at Yosemite Avenue and N. Grant Avenue includes parcel # 223-020-001. Continuing to the south, parcels running on the eastern edge of the parcels fronting along N. Main Street including # 221-020-033, 221-020-032, 221-020-035, 221-020- 027 and 221-020-010. On the south side of Moffat Blvd. the Downtown transportation center, parcel # 221-030-025. No District programs and services will be provided east of the eastern District boundary.

Southern Boundary
The southern boundary of the Downtown Manteca CBD shall include the parcels along the railroad tracks consisting of parcels # 217-210-064, 219-400-001, 219-400-007, 219-400-08, 219-410-012, 219-410-013,219-410-014, 219-410-015 and 221-030-025. No District programs and services will be provided south of the southern District boundary.

Western Boundary
The western boundary of the Downtown Manteca CBD is at the far western end of the City owned parcels at Pierce Avenue and Manteca Avenue including parcels # 217-210-071 and parcel 217-210- 064. No District programs and services will be provided west of the western District boundary.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
4 The Property and Business Improvement District Law of 1994, California Streets & Highway Code § 36632 states, “Properties zoned solely for residential use, or that are zoned for agricultural use, are conclusively presumed not to benefit from the improvements and service funded through these assessments and shall not be subject to any assessment pursuant to this part.” There are no parcels included in the proposed DMCBD that are zoned agricultural or solely residential.

All identified parcels within the above-described boundaries and zones 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 DMCBD funded services, programs and improvements provided within the above-described boundaries shall confer special benefit to identified assessed parcels inside the DMCBD boundaries and none will be provided outside of the DMCBD. Each assessed parcel within the DMCBD will proportionately specially benefit from the DMCBD funded Sidewalk Operations, District Identity-Placemaking, Administration-Management and Contingency-Reserve as described in more detail under “Work Plan”, beginning on page 9 of this Report. These services, programs and improvements are intended to improve commerce, employment, rents and commercial (and future residential) occupancy rates of parcels and businesses within the DMCBD by reducing litter and debris, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district. All DMCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Manteca and are only provided for the special benefit of assessed parcels within the boundaries of the DMCBD.

A list of all parcels included in the proposed DMCBD is shown as Appendix 1, attached to this Report with their respective San Joaquin County assessor parcel number. The boundary of the proposed DMCBD and parcels within it are shown on the map of the DMCBD 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 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 DMCBD that will receive special benefits from DMCBD funded programs and services are currently an array of commercial retailers, service stores, banks, financial centers and a mix of restaurants/bars/cafes. No parcels within the DMCBD are zoned solely residential. Services, programs and improvements provided and funded by the DMCBD 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 DMCBD.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
5 The proposed DMCBD programs, improvements and services and Year 1 budget allocation are as follows:

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

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& MANAGEMENT

CONTINGENCY
& RESERVE TOTAL

49.7887% 24.8943% 20.0237% 5.2933% 100%
$92,000 $46,000 $37,000 $9,781 $184,781
Assessed parcels are conferred proportionate special benefits from all DMCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants and investors. DMCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, visitors and employees of these parcels within the DMCBD by reducing litter and debris, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district.

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

In the case of the DMCBD, the very nature of the purpose of this CBD is to fund supplemental programs, services and improvements to assessed parcels within the DMCBD 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 DMCBD are for services, programs and improvements directly and specially benefiting each individual assessed parcel within the DMCBD. No DMCBD funded services, activities or programs will be provided outside of the DMCBD boundaries.

While every attempt is made to provide DMCBD services and programs to confer special benefits only to those identified assessed parcels within the DMCBD, 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 analyses throughout California have 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 DMCBD. 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 DMCBD, general benefit to the public at large within the DMCBD and general benefit to parcels outside the DMCBD.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
6 General Benefit – Assessed Parcels within the DMCBD
DMCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DMCBD parcels and are only provided for the special benefit to each and every assessed parcel within the DMCBD. 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 111 assessed parcels within the DMCBD are distinct and special but in the case of the DMCBD, 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 DMCBD funded programs and services are specially geared to the unique needs of each parcel within the DMCBD and are directed specially only to these parcels within the DMCBD. This concept is further reinforced by the proportionality of special benefits conferred on each parcel within the DMCBD 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 111 parcels within the DMCBD equates to $462 or (.25% x $184,781).

General Benefits – Outside Parcels
While DMCBD programs and services will not be provided directly to parcels outside the DMCBD boundaries, it is reasonable to conclude that DMCBD services may confer an indirect general benefit on parcels adjacent to the DMCBD boundaries. An inventory of the DMCBD boundaries finds that the DMCBD is immediately surrounded by 36 parcels. Of these, 12 are commercial zoned parcels with commercial uses, 17 are residentially zoned parcels with residential uses and 7 are publicly/non-profit owned parcels with public/non-profit uses.

The 36 parcels directly outside the DMCBD boundaries can reasonably be assumed to receive some indirect general benefit as a result of DMCBD 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 111 assessed parcels within the DMCBD, a benefit factor of 0.025 be attributed to general benefits conferred on the 12 commercial parcels and uses located adjacent to or across the street from assessed parcels within the DMCBD, a benefit factor of 0.01 be attributed to general benefits conferred on the 17 residential parcels and uses located adjacent to or across the street from assessed parcels within the DMCBD and, a benefit factor of 0.01 be attributed to general benefits conferred on the 7 publicly owned/non-profit parcels and uses located adjacent to or across the street from assessed parcels within the DMCBD. The cumulative dollar value of this general benefit type equates to $899 ($499 + $117 + $283) as delineated in the following Table:

Parcel Type Quantity Benefit
Factor
Benefit
Units
Benefit
Percent
Benefit
Value
Parcels within DMCBD 111 1.000 111.00 99.5159% $184,781 Commercial parcels outside of DMCBD 12 0.025 0.30 0.2690% $499 Public/non-profit parcels outside of DTCBD 7 0.010 0.07 0.0628% $117 Residential use parcels outside of DMCBD 17 0.010 0.17 0.1524% $283 TOTAL 111.54 100.00% $185,680
General Benefit - Public At Large
While the DMCBD funded programs are narrowly designed and carefully implemented to specially benefit the assessed DMCBD parcels and are only provided for the special benefit to each and every Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
7 assessed parcel within the DMCBD, these programs also provide general benefits to the public at large within the DMCBD.

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

Based on experience curves and the nature of the proposed DMCBD funded programs and over 30 years of assessment engineering experience, it is the opinion of this Assessment Engineer that districtwide general benefit factors for each of the DMCBD funded special benefit program element costs that provide a general benefit to the public at large are as shown in the Table below. These factors are applied to each program element cost 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 $2,255 as delineated in the following Table:

A B C E
Program Element Dollar
Allocation
General
Benefit
Percent
General
Benefit
Factor
General
Benefit Value
(A x C)
CIVIL SIDEWALKS $92,000 2.00% 0.020 $1,840
DISTRICT IDENTITY & PLACEMAKING $46,000 0.50% 0.005 $230 ADMINISTRATION & MANAGEMENT $37,000 0.50% 0.005 $185
CONTINGENCY & RESERVE $9,781 0.50% 0.005 $49
TOTAL $184,781 $2,255
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 DMCBD, on parcels outside the DMCBD, and on the public at large, equates to $3,616 ($462 + $2,255 + $899) or 1.9194%. For the purposes of this analysis, the districtwide general benefit factor of 1.9194% will be conservatively rounded up to 2% or $3,771. This leaves a value of 98% assigned to special benefit related costs. The districtwide general benefit value of $3,771 when added to the special benefit value of $184,781 (Year 1 – 2025 assessments) equates to a total Year 1 – 2025 program cost of $188,552. Remaining costs that are attributed to districtwide general benefits will need to be derived from other non-assessment sources such as grants, underwritings, event proceeds and sponsorships.

The program special benefit related cost allocations of the DMCBD assessment revenues for Year 1 – 2025 are shown in the Table on page 11 of this Report. The projected program special benefit related cost allocations of the DMCBD assessment revenues for Years 1-5 of the DMCBD, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 12 of this Report.

A breakdown of projected special and districtwide general benefitsfor Years 1-5 for each program element is shown in the following Table:

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
8 Year 1 - 2025 Special + Districtwide General Benefits

YR PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 1 CIVIL SIDEWALKS $92,000 $1,877 $93,877 49.7887%
DISTRICT IDENTITY & PLACEMAKING $46,000 $939 $46,939 24.8943% ADMINISTRATION & MANAGEMENT $37,000 $755 $37,755 20.0237% CONTINGENCY & RESERVE $9,781 $200 $9,981 5.2933%
SUBTOTAL $184,781 $3,771 $188,552 100%

YR PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 2 CIVIL SIDEWALKS $96,600 $1,971 $98,571 49.7887%
DISTRICT IDENTITY & PLACEMAKING $48,300 $986 $49,286 24.8943% ADMINISTRATION & MANAGEMENT $38,850 $793 $39,643 20.0237% CONTINGENCY & RESERVE $10,270 $210 $10,480 5.2933%
SUBTOTAL $194,020 $3,960 $197,980 100%

YR PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 3 CIVIL SIDEWALKS $101,430 $2,070 $103,500 49.7887%
DISTRICT IDENTITY & PLACEMAKING $50,715 $1,035 $51,750 24.8943% ADMINISTRATION & MANAGEMENT $40,793 $833 $41,626 20.0237% CONTINGENCY & RESERVE $10,784 $221 $11,005 5.2933%
SUBTOTAL $203,722 $4,159 $207,881 100%

YR PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 4 CIVIL SIDEWALKS $106,502 $2,174 $108,676 49.7887%
DISTRICT IDENTITY & PLACEMAKING $53,251 $1,087 $54,338 24.8943% ADMINISTRATION & MANAGEMENT $42,833 $875 $43,708 20.0237% CONTINGENCY & RESERVE $11,323 $232 $11,555 5.2933%
SUBTOTAL $213,909 $4,368 $218,277 100%

YR PROGRAM CATEGORY

SPECIAL

BENEFITS

GENERAL

BENEFITS
TOTAL

BENEFITS
% OF
TOTAL
YR 5 CIVIL SIDEWALKS $111,827 $2,283 $114,110 49.7887%
DISTRICT IDENTITY & PLACEMAKING $55,914 $1,141 $57,055 24.8943% ADMINISTRATION & MANAGEMENT $44,975 $919 $45,894 20.0237% CONTINGENCY & RESERVE $11,889 $244 $12,133 5.2933%
SUBTOTAL $224,605 $4,587 $229,192 100%

DMCBD WORK PLAN
Overview
The services, programs and improvements to be funded by the DMCBD include Sidewalk Operations, District Identity-Placemaking, Administration-Management and Contingency-Reserve. The property uses within the boundaries of the DMCBD that will receive special benefits from DMCBD funded programs, Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
9 services and improvements are currently an array of commercial retailers, service stores, banks, financial centers and a mix of restaurants/bars/cafes. Services, programs and improvements provided and funded by the DMCBD are primarily designed to provide special benefits as described below to identified assessed parcels within the boundaries of the DMCBD.

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

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

The program special benefit cost allocations of the DMCBD assessment revenues for Year 1-2025 are shown in the Table on page 11 of this Report. The projected program special benefit cost allocations of the DMCBD assessment revenues for the 5-year term of the DMCBD, assuming a 5% maximum annual assessment rate increase, are shown in the Table on page 12 of this Report.

WORK PLAN DETAILS
The services to be provided by the DMCBD (i.e. Sidewalk Operations, District Identity-Placemaking, Administration-Management and Contingency-Reserve) are all designed to contribute to the cohesive urban fabric to ensure economic success and vitality of each assessed parcel within the proposed DMCBD.

The assessed parcels in the DMCBD will specially benefit from the DMCBD programs in the form of increasing commerce and improving economic success and vitality through meeting the DMCBD Goals:
to improve cleanliness, beautification, landscaping 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.

Assessed parcels are conferred proportionate special benefits from all DMCBD funded programs, services and improvements which are intended to attract more customers, users, visitors, employees, tenants, future residents and investors. DMCBD programs, services and improvements are designed to increase business volumes, sales transactions, occupancies and rental income. These programs, services and improvements are designed to improve commerce and aesthetic appeal for owners, tenants, patrons, visitors and employees of these parcels within the DMCBD by reducing litter and debris, marketing the available goods and services and installing beautification elements, each considered necessary in a competitive properly managed business district.

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

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
10 The following programs, services and improvements are proposed by the DMCBD to specially benefit each and every individually assessed parcel within the DMCBD boundaries. DMCBD services, programs and improvements will not be provided to parcels outside the DMCBD boundary.

CIVIL SIDEWALKS
Examples of this category of special benefit services may include, but are not limited to:
• Regular sidewalk and gutter sweeping
• Periodic sidewalk steam cleaning
• Beautification of the district
• Enhanced trash emptying (over and above city services) • Timely graffiti removal, within 72 hours as necessary • Maintenance of existing and new public spaces
• Installation and maintenance of hanging plants, planting flowers throughout the district. • Personnel to manage in-house or contracted maintenance and/or security teams.

DISTRICT IDENTITY AND PLACEMAKING:

Examples of this category of special benefit services may include, but are not limited to:
• Website development and updating
• Traditional events done by the City or businesses within Downtown • Social media, public relations firm
• Enhancing current City holiday and seasonal decorations • Branding of Downtown Manteca CBD 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 in-house or contracted public relations, web site maintenance or social media contractors.

ADMINISTRATION/DISTRICT 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/CITY AND COUNTY FEES/RESERVE
Examples of this category of special benefit services and costs include, but is not limited to:
• Delinquencies, City/County fees, reserves
Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
11 In summary, all DMCBD funded services, programs and improvements described above confer special benefits to identified assessed parcels inside the DMCBD boundaries and none will be provided outside of the DMCBD. Each assessed parcel within the DMCBD will proportionately specially benefit from Sidewalk Operations, District Identity-Placemaking, Administration-Management and ContingencyReserve. These services, programs and improvements are intended to improve commerce, employment, rents and occupancy rates of assessed parcels within the DMCBD by reducing litter, marketing the available goods and services and installing physical improvements, each considered necessary in a competitive properly managed business district. All DMCBD funded services programs and improvements are considered supplemental, above normal base level services provided by the City of Manteca and are only provided for the special benefit of each and every assessed parcel within the boundaries of the DMCBD.

WORK PLAN BUDGET

Each identified assessed parcel within the DMCBD will be assessed the full amount of the proportionate special benefit conferred upon it based on the level of DMCBD funded services provided. The projected DMCBD program special benefit (assessments) allocation budget for Year 1- 2025 is shown in the following Table:

DMCBD Year 1-2025 Special Benefit Assessment Budget by Zone CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& MANAGEMENT

CONTINGENCY &

RESERVE TOTAL

49.7887% 24.8943% 20.0237% 5.2933% 100%
$92,000 $46,000 $37,000 $9,781 $184,781
In order to carry out the DMCBD programs outlined in the previous section, a Year 1-2025 assessment budget of $184,781 is projected. Since the DMCBD is being proposed for a 5-year term, projected program costs for future years (Years 2-5) are set at the inception of the DMCBD. 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 DMCBD.

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 Property 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 for the proposed DMCBD. Accordingly, the Owners’ Association shall have the ability to reallocate any budget line item within the budget categories in the Management District Plan subject to the review and approval by the Owners’ Association Board. Any proposed variation that exceeds 10% of the total budget shall be subject to review and approval from the City Manager’s Office. Any surplus or unspent funds, per category, shall be accumulated year to year over the life of the DMCBD. Such Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
12 reallocation will be included in the Annual Report for approval by the City of Manteca City Council pursuant to related City policies. Any accrued interest or delinquent payments may be expended in any budget category in accordance with the Management District Plan.

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

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

YEAR
CIVIL

SIDEWALKS

DISTRICT

IDENTITY &

PLACEMAKING

ADMINISTRATION
& MANAGEMENT

CONTINGENCY
& RESERVE TOTAL

49.7887% 24.8943% 20.0237% 5.2933% 100.0000%
YR 1 $92,000 $46,000 $37,000 $9,781 $184,781
YR 2 $96,600 $48,300 $38,850 $10,270 $194,020
YR 3 $101,430 $50,715 $40,793 $10,784 $203,721
YR 4 $106,502 $53,251 $42,833 $11,323 $213,907
YR 5 $111,827 $55,914 $44,975 $11,889 $224,602
The DMCBD assessments may increase for each individual parcel each year during the life of the DMCBD, 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 Manteca 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 DMCBD) 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 DMCBD operates at a time determined in the Administration Contract held between the Owners’ Association and the City of Manteca. No bonds are to be issued in conjunction with the proposed DMCBD.

Pursuant to the State law, any funds remaining after the 5-Year term will be rolled over into the renewal budget or returned to stakeholders in accordance with State Law. If the DMCBD is terminated for any reason or disestablished, unencumbered/unexpended funds will be returned to the property owners in accordance with the State Law.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
13 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 DMCBD 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 DMCBD (i.e. Sidewalk Operations, District Identity-Placemaking, Administration-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 land area, street frontage and building area of each parcel within one benefit zone, 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 DMCBD as a whole. Larger parcels and those with larger buildings and/or street frontage are projected to impact the demand for services and programs to a greater extent than smaller parcels or smaller buildings or street frontages 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 in the Management District Plan and this Report. The individual percentages (i.e. proportionate relationship to the total special benefit related program and activity costs) are 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 DMCBD, they are also considerably less than other options considered by the DMCBD Formation Advisory Committee. The actual assessment rates for each parcel within the DMCBD directly relate to the level of service and, in turn, special benefit to be conferred on each parcel based on the respective of land area, street frontage and building area of each parcel within one benefit zone, 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 21 publicly owned parcels within the boundaries of the proposed DMCBD -all are owned by the City of Manteca, County of San Joaquin and the former Manteca Redevelopment Agency.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
14 For assessed publicly owned parcels and facilities, each of these parcels specially benefit from proposed DMCBD funded programs and services from cleaner facility entrances and perimeters. In addition, the proposed DMCBD funded marketing and district identity programs benefit publicly owned parcels by announcing public events and activities held at these public facilities and apprise employees of important DMCBD news and events These services and programs are designed to improve the cleanliness and usability of each publicly owned assessed parcel and facility within the DMCBD by reducing litter and debris, marketing the available goods and services in the proposed DMCBD and installing physical improvements, each considered necessary for public facilities within a business district.

It is the opinion of this Assessment Engineer that there is no clear and convincing evidence that these publicly owned parcels would not receive proportionate special benefits and thus, are not exempt from assessments nor assessed differently than privately owned parcels.

PUBLICLY OWNED PARCELS
APN Public Agency Site Address Year 1 Assessment % of Total 217-210-100-000 CITY OF MANTECA 309 W YOSEMITE AVE $ 250.00 0.14% 217-210-110-000 CITY OF MANTECA 105 SYCAMORE AVE $ 955.00 0.52% 217-210-120-000 CITY OF MANTECA 224 W CENTER ST $ 1,391.35 0.75% 217-210-160-000 CITY OF MANTECA 126 SYCAMORE AVE $ 469.45 0.25% 217-210-170-000 CITY OF MANTECA 124 SYCAMORE AVE $ 479.50 0.26% 217-210-180-000 CITY OF MANTECA 116 N SYCAMORE AVE $ 501.70 0.27% 217-210-190-000 CITY OF MANTECA 112 N SYCAMORE AVE $ 239.95 0.13% 217-210-280-000 CITY OF MANTECA 113 N MAPLE AVE $ 500.00 0.27% 217-210-340-000 CITY OF MANTECA 142 N MAPLE AVE $ 550.00 0.30% 217-210-350-000 CITY OF MANTECA 140 N MAPLE AVE $ 200.00 0.11% 217-210-360-000 CITY OF MANTECA 138 N MAPLE AVE $ 82.50 0.04% 217-210-500-000 CITY OF MANTECA 113 N MAIN ST $ 43.75 0.02% 217-210-510-000 CITY OF MANTECA 115 N MAIN ST $ 551.30 0.30% 217-210-640-000 CITY OF MANTECA 111 POPLAR AVE $ 1,698.80 0.92% 217-210-710-000 CITY OF MANTECA 320 W CENTER ST $ 12,978.34 7.02% 219-400-070-000 CITY OF MANTECA 121 S MAPLE AVE $ 3,195.66 1.73% 219-400-080-000 CITY OF MANTECA 314 W YOSEMITE AVE $ 980.00 0.53% 219-410-120-000 CITY OF MANTECA 130 S MAPLE AVE $ 272.50 0.15% 219-410-130-000 CITY OF MANTECA 201 S MAIN ST $ 272.50 0.15% 221-030-250-000 CITY OF MANTECA 220 MOFFAT BLVD $ 13,588.40 7.35% TOTAL $ 39,200.70 21.22%
221-020-350-000 MANTECA REDEVELOPMENT 123 S GRANT AVE $ 1,758.45 0.95% PUBLIC PARCEL TOTAL $ 40,959.15 22.17%
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 DMCBD.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
15 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 DMCBD and resultant assessment levies will continue for 5 years unless disestablished. 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 land area, street frontage and building area of each DMCBD assessed parcel within one benefit zone, except as noted herein.

Assessment Formula Methodology
Step 1. Select “Benefit Unit(s)”
Background - Assessment Formula Development
The method used to determine special benefits derived by each identified assessed property within a CBD begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the DMCBD, 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 CBD 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 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, if any, must be identified and, if quantifiable, calculated and factored out of the assessment cost basis to produce a “net” cost figure. In addition, 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 pages 13-14 of this Report for discussion regarding publicly owned parcels within the DMCBD).

From the estimated program costs, the value of a benefit unit or “unit cost” can be computed by dividing Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
16 the total amount of estimated 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 Unit Cost times the number of Benefit Units per parcel. This is known as “spreading the assessment” or the “assessment spread” in that all costs are allocated proportionately or “spread” amongst all benefitting properties within the CBD.

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

DMCBD Assessment Formula
Based on the specific needs and corresponding nature of the program activities to be funded by the proposed DMCBD (i.e. Sidewalk Operations, District Identity-Placemaking, AdministrationManagement 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 land area, street frontage and building area of each parcel within one benefit zone, except as noted herein.

The “Benefit Units” will be expressed as a combined function of land square footage (Benefit Unit “A”), street frontage (Benefit Unit “B”) and gross building square footage (Benefit Unit “C”). Based on the shape of the proposed DMCBD, 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 land area, street frontage and building area. It is noted and explained in more detail on page 17 under “Special Assessment Circumstances” that future residential condominiums will be assessed based only on interior building pad square footage of each unit.

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

Land Area (Benefit Unit A) is a direct measure of the current and future development capacity of each parcel and its corresponding impact or draw on DMCBD funded activities. The targeted revenue weight of Land Area (Unit A) is about 35%. Unit A will actually generate 34.73165% of the overall assessment revenue.

Street Frontage (Benefit Unit B) is a direct measure of each parcel’s corresponding impact or draw on DMCBD funded activities. The targeted revenue weight of Street Frontage (Unit B) is about 25%. Unit B will actually generate 25.23178% of the overall assessment revenue.

Building Area (Benefit Units C) is a direct measure of the static utilization of each parcel and its corresponding impact or draw on DMCBD funded activities. The targeted revenue weight of Building Area (Units C) is about 40%. Unit C will actually generate 40.03657% of the overall assessment revenue.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
17 Special Assessment Circumstances

1. Residential Condominiums
Though currently no residential condominium parcels exist within the boundaries of the DMCBD, future residential condos will be assessed as a separate category. It is the opinion of this Assessment Engineer that residential condominium parcels will proportionately specially benefit from DMCBD 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 at the rate of $0.17 per square foot of internal building pad area, subject to any approved annual rate increases.

2. Commercial and Mixed-Use Condominiums
While no mixed-use condominiums currently exist within the DMCBD, ground floor commercial condominiums within the DMCBD 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 above for ground floor and upper floor locations) - 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, 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 Report 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 DMCBD and their respective assessable benefit units, the cumulative quantities by factor and zone are shown in the following Table:

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
18 Year 1 – 2025 - Assessable Benefit Units

LAND AREA
(SQ FT)
STREET

FRONTAGE
(LN FT)
BLDG

AREA (SQ
FT)

RESID CONDO

BLDG AREA
(SQ FT)
# OF

ASSESSABLE

PARCELS
1,283,549 13,321 435,176 0 111
Considering all identified specially benefiting parcels within the DMCBD and their respective assessable benefit units, the cumulative assessment revenue by factor are shown in the following Table:

Year 1 – 2025 - Assessment Revenue

LAND AREA
ASSMT

REVENUE
STREET

FRONTAGE

REVENUE

BLDG AREA
ASSMT

REVENUE

RESID CONDO

BLDG AREA

REVENUE
TOTAL

REVENUE
$64,177.45 $46,623.50 $73,979.92 $0.00 $184,780.87

34.73165% 25.23178% 40.03657% 0.00000% 100.00%
Step 3. Calculate Benefit Units for Each Property.

The number of Benefit Units for each identified benefiting parcel within the proposed DMCBD 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 DMCBD for their review. If a property owner believes there is an error on a parcel’s assessed quantities, the DMCBD may confirm the data with the San Joaquin County Assessor’s office. If DMCBD data matches Assessor’s data, the property owner may opt to work with the Assessor’s office to correct the data so that the DMCBD assessment may be corrected.

Step 4. Determine Assessment Formula
In the opinion of this Assessment Engineer, the general assessment formula for the proposed DMCBD, as shown in the Year 1 Assessment Rate Table above, is as follows, except as noted on page 17 and 19 for future residential condominiums:

Assessment = Land Area (Unit A) Sq Ft x Unit A Rate, plus Street Frontage (Unit B) Lin Ft x Unit B Rate, plus
Building Area (Unit C) Sq Ft x Unit C Rate
Assessment Formula Unit Rates
Based on figures from the Assessable Benefit Units Table above, the assessment rates for each factor and zone are shown as calculated below:

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
19 Land Area Rate (Unit A)
($184,780.87 x 34.73165%) / 1,283,549 assessable land units = $0.05/sq ft land area Street Frontage Rate B (Unit B)
($184,780.87 x 25.23178%) / 13,321 assessable frontage units = $3.50/LF street frontage Building Area Rate (Unit C)
($184,780.87 x 40.03657%) / 435,176 assessable building units = $0.17/sq ft building area It is noted that the assessment rate for future residential condominiums is set at the Year 1 -2025 building area rate of $0.17 per square foot of interior building pad area subject to a maximum 5% rate increase per year for the proposed 5-year DMCBD term.

YEAR 1 –2025 Assessment Rates

LAND AREA

ASSMT RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

BLDG AREA

ASSMT RATE
($/SQ FT)

RESID CONDO

BLDG AREA

ASSMT RATE
($/SQ FT)
$0.05 $3.50 $0.17 $0.17
The complete Year 1 – 2025 assessment roll of all parcels to be assessed by the DMCBD is included in this Report as Appendix I.

Step 5. Estimate Total DMCBD Costs
The total projected 5-year DMCBD special benefit costs for 2025 – 2029 are shown in the Table on page 12 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 $188,552. 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 $3,771 with a resultant 98% special benefit limit computed at $184,781. Based on current property data and land uses, this is the maximum amount of Year 1 - 2025 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 DMCBD assessments.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
20 Step 7. Calculate “Basic Unit Cost”
With a YR 1 - 2025 assessment revenue portion of the budget set at $184,781 (special benefit only), the Unit Costs (rates) are shown earlier in Step 4. The DMCBD is proposed for a 5-year term. 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 DMCBD Property Owner’s Association. The maximum assessment rates for years 1-5 (2025-2029) are shown in the Table below. The assessment rates listed constitute the maximum assessment rates that may be imposed for each year of the 5-year DMCBD term.

DMCBD – Maximum Assessment Rates - Years 1-5
(Includes a 5%/Yr. Max Increase)

YEAR

LAND AREA

ASSMT RATE
($/SQ FT)
STREET

FRONTAGE

ASSMT RATE
($/LN FT)

BLDG AREA
ASSMT
RATE ($/SQ
FT)

RESID CONDO

BLDG AREA

ASSMT RATE
($/SQ FT)
YR 1 $0.050000 $3.500000 $0.170000 $0.170000
YR 2 $0.052500 $3.675000 $0.178500 $0.178500
YR 3 $0.055125 $3.858750 $0.187425 $0.187425
YR 4 $0.057881 $4.051688 $0.196796 $0.196796
YR 5 $0.060775 $4.254272 $0.206636 $0.206636
Step 8. Spread the Assessments
The resultant assessment spread calculation results for each parcel within the DMCBD are shown in the Management District Plan and this Report and were determined by applying the DMCBD assessment formula to each identified benefiting property.

Miscellaneous DMCBD 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 San Joaquin County. The DMCBD assessments shall appear as a separate line item on the property tax bills issued by San Joaquin County. The City of Manteca 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 the proposed DMCBD.

Duration:

As allowed by State Law, the DMCBD will have a 5-year operation term, beginning January 1, 2025 and ending December 31, 2029. At that time, the DMCBD may be renewed again for up to 10 years.

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
21 APPENDIX 1
DMCBD
YR 1 – 2025

ASSESSMENT ROLL

Exhibit "A" ATTACHMENT 2
22 APN Year 1 Assessment
217-210-080-000 $2,017.50
217-210-090-000 $1,040.33
217-210-100-000 $250.00
217-210-110-000 $955.00
217-210-120-000 $1,391.35
217-210-140-000 $750.00
217-210-150-000 $996.91
217-210-160-000 $469.45
217-210-170-000 $479.50
217-210-180-000 $501.70
217-210-190-000 $239.95
217-210-200-000 $2,043.68
217-210-210-000 $1,307.50
217-210-220-000 $624.00
217-210-230-000 $708.00
217-210-240-000 $566.61
217-210-250-000 $231.40
217-210-260-000 $1,605.00
217-210-270-000 $918.01
217-210-280-000 $500.00
217-210-300-000 $1,047.74
217-210-310-000 $1,104.52
217-210-320-000 $936.73
217-210-330-000 $4,135.00
217-210-340-000 $550.00
217-210-350-000 $200.00
217-210-360-000 $82.50
217-210-370-000 $1,239.12
217-210-380-000 $794.00
217-210-390-000 $500.00
217-210-400-000 $2,128.00
217-210-410-000 $1,902.75
217-210-420-000 $757.96
217-210-430-000 $1,879.55
217-210-440-000 $447.73
217-210-450-000 $541.04
217-210-460-000 $845.00
217-210-470-000 $2,710.00
217-210-480-000 $250.00
217-210-490-000 $884.20
217-210-500-000 $43.75
217-210-510-000 $551.30
217-210-520-000 $1,305.60
217-210-530-000 $930.00
217-210-540-000 $1,357.77
217-210-550-000 $1,160.00
217-210-560-000 $1,711.28
217-210-570-000 $2,175.29
217-210-580-000 $2,956.91
217-210-590-000 $2,364.15
217-210-640-000 $1,698.80
217-210-650-000 $417.25
217-210-660-000 $592.25
217-210-710-000 $12,978.34
217-225-090-000 $2,575.48
217-226-020-000 $560.00
217-226-030-000 $1,108.00
217-226-040-000 $1,563.40
217-226-050-000 $927.50
217-226-060-000 $966.59
217-226-090-000 $2,781.42
219-400-010-000 $2,453.70
219-400-020-000 $1,312.46
219-400-030-000 $342.50
219-400-040-000 $833.00
219-400-050-000 $1,993.00
219-400-060-000 $2,757.45
219-400-070-000 $3,195.66
219-400-080-000 $980.00
219-410-010-000 $2,370.00
219-410-030-000 $681.47
219-410-040-000 $646.62
219-410-050-000 $675.86
219-410-060-000 $912.50
219-410-070-000 $475.26
219-410-080-000 $2,250.00
219-410-090-000 $2,254.20
219-410-100-000 $4,388.19
219-410-120-000 $272.50
219-410-130-000 $272.50
219-410-140-000 $4,859.40
219-410-150-000 $3,034.71
221-020-010-000 $2,042.50
221-020-100-000 $1,400.11
221-020-270-000 $6,685.80
221-020-320-000 $652.50
221-020-330-000 $3,416.85
221-020-350-000 $1,758.45
221-020-360-000 $5,735.66
221-030-250-000 $13,588.40
223-091-130-000 $1,546.70
223-091-140-000 $1,523.00
223-091-150-000 $1,494.72
223-091-160-000 $3,021.04
223-091-170-000 $468.40
223-091-200-000 $3,137.80
223-101-010-000 $3,191.54
223-101-050-000 $4,266.50
223-101-060-000 $525.00
223-101-070-000 $3,193.97
223-101-080-000 $535.00
223-101-090-000 $1,770.00
223-101-100-000 $541.90
223-101-110-000 $545.00
223-101-120-000 $272.50
Exhibit "A" ATTACHMENT
2 DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
23 223-101-130-000 $442.96
223-101-140-000 $1,525.00
223-101-150-000 $950.70
223-102-100-000 $555.21
223-102-110-000 $1,483.87
223-102-120-000 $292.00
Exhibit "A" ATTACHMENT 2
24 APPENDIX 2

DMCBD BOUNDARY MAP

Exhibit "A" ATTACHMENT 2
DOWNTOWN MANTECA CBD – ASSESSMENT ENGINEER’S REPORT
25 Exhibit "A" ATTACHMENT 2