View Legislation And Exhibit AB — Oakland City Council, May 16, 2023

APPROVED AS TO FORM AND LEGALITY
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CITY ATTORNEY'S OFFICE

OAKLAND CITY COUNCIL
RESOLUTION NO. C.M.S.---------
RESOLUTION:
1) DECLARING AN INTENTION TO· FORM THE DIMOND BUSINESS
IMPROVEMENT DISTRICT OF 2023 {DIMOND BID 2023);
2) GRANTING PRELIMINARY APPROVAL OF THE DIMOND BID 2023 MANAGEMENT PLAN;
3) DIRECTING FILING OF THE PROPOSED DIMOND BID 2023

ASSESSMENT DISTRICT BOUNDARY DESCRIPTION WITH THE CITY
CLERK;
4) DIRECTING DISTRIBUTION OF A BALLOT TO ALL AFFECTED
PROPERTY OWNERS IN THE PROPOSED DIMOND BID 2023 TO
DETERMINE WHETHER A MAJORITY PROTEST EXISTS; AND
5) SCHEDULING A PUBLIC HEARING FOR JULY 18, 2023
WHEREAS, the City Council of the City of Oakland enacted the City of Oakland Business Improvement Management District Ordinance (BIMD Ordinance) pursuant to Ordinance No. 12190 C.M.S. (1999), as codified in Chapter 4.48 of the Oakland Municipal Code (O.M.C.), establishing the procedures for the formation of business improvement management districts; and
WHEREAS, the City Council approved a Neighborhood Business Improvement District Program pursuant to Oakland City Council Resolution No. 75323 C.M.S., dated November 9, 1999, to provide technical and financial assistance to stakeholder groups of business and property owners in the City to assist in the formation of such districts; and WHEREAS, the affected property owners in the Dimond area. are submitting a petition under the BIMD Ordinance (O.M.C. section 4:48.050.A.) to form the Dimond Business Improvement District of 2023 (Proposed District) and seek qualification as a Business Improvement Management District under Oakland's BIMD Ordinance; and WHEREAS, a management plan for the operation of the Proposed District (Dimond BID 2023 Management Plan), which is attached hereto and incorporated by reference as Exhibit A, has been prepared in accordance with the provisions of Article XIII of the California Constitution and the BIMD Ordinance, and has been placed on file with the Office of the City Clerk for proceedings in formation of the Dimond BID 2023; and

City of Oakland, California
March 2023
Prepared by:

Kristin Lowell, Inc.

Prepared pursuant to the City of Oakland
Business Improvement District Management Ordinance 12190, Chapter 4.48 of the Oakland Municipal Code, as amended July 21, 2015, and Article XIIID of the California Constitution.

Dimond
Business Improvement District
Management District Plan
Exhibit A

DIMOND
Business Improvement District
Management District Plan

Table of Contents

Section Number Page Number

1. Executive Summary .............................................................................. 1

2. DBID Boundary ...................................................................................... 4

3. DBID Activity and Improvement Plan ................................................. 6

4. DBID Assessment Budget .................................................................. 11

5. Assessment Methodology.................................................................. 13

6. DBID Governance ................................................................................ 19

7. Implementation Timetable .................................................................. 20

ATTACHMENTS

A. Assessment Roll

B. Engineer’s Report

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SECTION 1: EXECUTIVE SUMMARY

The Dimond Business Improvement District (“DBID”) is being developed by a coalition of property and business owners , as well as area residents , to improve both district vibrancy and the environmental aesthetics of the Dimond commercial corridor. T he DBID Management District Plan responds to today’s market opportunities, district challenges, and local efforts from the Dimond Improvement Association (“DIA”) to vitalize the community. The DBID Management District Plan describes how the DBID will improve and convey special benefits to assessed parcels located within the district boundary.

Summary Management Plan
Pursuant to the City of Oakland Business Improvement District Management Ordinance 12190, Chapter 4.48 of the Oakland Municipal Code, as amended July 21, 2015, (“Oakland BIMD Ordinance”) the DBID is being formed for an initial term of 10 years. Upon receipt of petitions signed by property owners representing 30% or more of assessments proposed to be levied for the District, the City of Oakland will initiate a ballot procedure to officially form the DBID.

The DBID will provide enhanced improvements and activities, such as property and district maintenance, beautification, safety enhancements, and initiatives to make the area more welcoming to those living, working, shopping, and dining in the Dimond and improve district vibrancy and business development. Each of the activities is designed to meet the goals of the District, to improve the appearance and safety of the DBID, increase building occupancy and property values , encourage business retention and new business development and attract ancillary merchants and services that support a vital commercial neighborhood.

Location The DBID generally includes parcels that front MacArthur Boulevard from E 38 th Street to Coolidge Avenue, on Fruitvale Avenue from Coloma Street to School Street, and on Dimond Avenue from MacArthur Boulevard to Bienati Way. (See Section 3 for full boundary description and map.)

Services &
Activities
The DBID will annually finance services that will enhance the experience within the District for property owners, businesses, residents, employees, and visitors. Below is a multi-dimensional approach of services that the Board of Directors may select from on an annual basis to provide a safer, cleaner, and more aesthetically appealing community.

Clean, Safe, Beautiful and Welcoming Services:
• Safe and Welcoming services that support property owners and businesses in overall crime prevention efforts , above what the City currently provides. Ambassadors will provide concierge services to customers, residents, business owners, and
employees while in the district , conduct wellness checks on the unhoused and coordinate with law enforcement, when
appropriate.
• Maintenance services, including removing litter, trash and graffiti; sweeping, scrubbing and pressure washing sidewalks and public spaces; and install ing and maintain ing common area
landscaping.

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• Beautification initiatives, such as installing and maintaining streetscape furniture, bike racks, tree lighting, information kiosks, public art, banners, holiday décor and placemaking activities.

Dimond Business Development and Vitality:
• Business Development that improves the business climate for existing and targeted new storefront businesses and restaurant users, including activities to assist property owners in recruiting and retaining businesses , assisting business and property owners in navigating City processes , and support ing the marketing of new real estate investment and redevelopment opportunities to the broader public.
• Marketing and Promotions activities that proactively promote a positive image of the District to those in Oakland and around the region.

District Management and Advocacy:
• Management activities that administer the DBID programs, including communicating with stakeholders and serv ing as a resource and representative of the Dimond neighborhood
community to advocate for policies and resources that further the growth of the neighborhood.

Method of
Financing
Levy of assessments upon real property that receive a special benefit from enhanced services.

Budget The DBID budget for its first year of operations is $280,000, as follows:

EXPENDITURES
TOTAL
BUDGET
% of
Budget
Clean, Safe, Beautiful and
Welcoming Services $160,000 57.14%
Dimond Business Development & Vitality $40,000 14.29%
District Management & Advocacy $70,000 25.00%
District Fees & Reserves $10,000 3.57%
Total Expenditures $280,000 100.00%

REVENUES
Assessment Revenues $274,400 98.00%
Other Revenues $5,600 2.00%
Total Revenues $280,000 100.00%

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Assessments All assessed parcels’ annual assessments are based upon an allocation of program costs and a calculation of lot + building square footage plus linear street frontage. Estimated annual maximum assessment rates for the first year of the DBID are as follows:

Land Use Per Lot+Bldg SgFt Per Linear Foot
Commercial $0.07808 $11.23718
Residential 4+ units $0.07808 $11.23718
Government $0.06460 $9.29152
Non-Profit $0.06460 $9.29152
Residential 1-3 units $0.06460 $9.29152

Increases Assessments will be subject to an annual increase of up to 5% per year to address changes in the cost of providing services. The determination of annual adjustments in assessment rates will be subject to review and approval by the DBID Board of Directors a nd City Council and will be subject to the requirements of the Ordinance . The Board will develop annual budgets and service programs each year, which will be presented to the City Council for approval.

City Services The City has established the base level of pre-existing City services. The DBID will not replace any pre-existing general City services.

Collection DBID assessments appear as a separate line item on the annual Alameda County property tax bills.

District
Governance
The DBID will be managed by a nonprofit organization that will act as the DBID Board of Directors . The Board, which is comprised primarily of property owners, shall be elected by property owners within the District and will determine DBID annual services and budgets.

District
Formation
The Ordinance requires the submission of petitions signed by property owners in the proposed district who will pay more than 30% of the total assessments (i.e., petitions must represent 30% or more of the $274,400 to be assessed). Petitions are submitted to the City, which then mails ballots to all assessed property owners. The majority of ballots returned, as weighted by assessments to be paid, must be in favor of the DBID for the City Council to approve formation.

Duration The DBID will have an initial 10 -year term that will run from January 1, 2024, through December 31, 2033. Any subsequent renewal of the DBID will require a new Management District Plan, petition, and ballot process.

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SECTION 2: DBID BOUNDARY

DBID Boundary
The DBID boundary generally includes parcels that front MacArthur Boulevard from E 38th Street to Coolidge Avenue, on Fruitvale Avenue from Coloma Street to School Street, and on Dimond Avenue from MacArthur Boulevard to Bienati Way. The boundaries are as follows:

Beginning at the northwest corner of APN 24-518-8-1 east along the north property lines to APN 29A-1301-20; thence north along the west property line of APN 29A-1301-7-2; thence east across Dimond Avenue; thence north along west property lines to APN 29A-1302-29-1; thence east along north property line to APN 29A -1302-15; thence north along west property lines to APN 29A - 1302-11; thence east along north property line across Fruitvale Avenue to east property line of APN 29A-1304-31-1; thence south along east property line to APN 29A-1304-29-4; thence follow the east property to the northeast corner of APN 29A-1304-26-5; thence south along east property line to APN 29A-1304-23; thence east along north property line; thence south along east property line to APN 29A-1304-24; thence east across May Court to the northern property line of APN 29A- 1304-14; thence east along north property lines of all parcels fronting MacArthur Boulevard to APN 28-916-72-2; thence south along east property lines to the southeast corner of APN 28-916- 413-5; thence west along the south property line of all parcels fronting MacArthur Boulevard to the east property line of APN 28 -906-35; thence south along the east property line across Champion Street; thence south along the east property lines of parcels fronting Champion Street to Montana Street; thence west along the south property line of APN 28 -905-26-8 to the midway point; thence south under the I580 Freeway to the east property line of APN 28-904-24-2; thence south along east property lines of all parcels fronting Fruitvale Avenue to the southeast corner of APN 27-860-26-3; thence west to the southwest corner of said parcel; thence north along the west property lines of all parcels fronting Fruitvale Avenue to Pleasant Street; thence west across Pleasant Street to the southwest corner of APN 26 -832-19-2; thence north along west property lines of parcels fronting Fruitvale Avenue; thence north under the I580 freeway to the southeast corner of APN 26 -834-22-1; thence west to t he southwest corner of said parcel; thence north along west property line to Bienati Way ; thence west along centerline of Bienati Way to the northeast corner of APN 23 -498-30-1; thence south, west, and then north of said parcel to the southern parcel line of APN 26 -835-10-2; thence northwest along west property lines to the southeast corner of APN 23-498-14-1; thence west along south property line across Adell Court to the southeast corner of APN 23 -498-1-1; thence west and north of said property lines to t he centerline of MacArthur Boulevard; thence north to the southeast corner of APN 24 -518-8-1; thence northwest of the south property line to the point of beginning.

A map of the proposed district boundary is on the following page

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SECTION 3: DBID ACTIVITY AND IMPROVEMENT PLAN

Background and Feasibility
The Dimond District is one of Oakland’s most dynamic neighborhoods, home to many small businesses and a noted hub for public art and community events. For more than 75 years, the Dimond Improvement Association (DIA) –a community-based, 501(c)(3) non-profit organization – has worked to make the Dimond neighborhood a vibrant, safe, and beautiful place for everyone to live, work, shop, and play.

Through leadership in numerous community efforts, public forums, and programs like Keep Dimond Clean, Dimond Public Art, and Oaktoberfest – as well by providing financial support for other local initiatives through its Community Grants Program – the DIA has demonstrated that the Dimond commercial corridor and the greater neighborhood can be significantly improved through focused efforts that align the priorities of residents, property owners, and businesses in pursuit of a common goal.

What has limited the impact of the DIA’s programs is access to a consistent, sustainable funding source. While tasked with performing numerous services that the City does not provide, the DIA relies solely on membership dues, donations and event revenues to sustain itself and build momentum for its community investments and initiatives. However, these funds have not proven sufficient to provide the community with all the services it has increasingly come to reply upon.

The DIA is now engaged in the formation of the Dimond Business Improvement District (DBID). The D BID is a public -private partnership —made up of property owners, residents, and businesses—dedicated to improving Dimond’s quality of life through economic and community development. The DBID will fund programs similar to those of the DIA, but rather than rely on dues, grants, and event proceeds to sustain those programs, the DBID will be funded by an assessment on properties within the defined district, thus ensuring a long-term, sustainable revenue stream.

Based upon these findings, the following service and activity categories will be funded by the DBID.

The following narrative provides recommendations for the first year of the DBID’s operation. District activities may be amended in subsequent years within the following general categories. Final activities and budgets will be subject to review and approval by the DBID Board of Directors prior to City Council approval.

Clean, Safe, Beautiful, and Welcoming
To respond to stakeholder priorities and guiding principles to make the Dimond community safer, cleaner, more beautiful and welcoming, the DBID will fund services that support property owners and businesses in overall crime prevention efforts and increase maintenance and beautification activities in the neighborhood . These activities are intended to improve commerce and quality of life by making each individually assessed parcel safer, cleaner , and more attractive, which will encourage investment dollars and generate additional pedestrian traffic. The following is a multi- dimensional approach of services that the Board of Directors may select from on an annual basis to provide a safer, cleaner, and more aesthetically appealing community.

Safety Ambassadors:

The Safety Ambassadors will provide safety services for the individual parcels located within the DBID in the form of walking or bike patrols. The purpose of the Safety Ambassadors is to prevent, Dimond BID March 8, 2023
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deter and report illegal activities taking place on the streets, sidewalks, storefronts, and parking lots. The presence of the Safety Ambassadors is intended to deter such illegal activities as vandalism, graffiti, narcotic use or sales, public urination, trespassing, drinking in public, illegal panhandling, and illegal dumping. The safety activities will supplement, not replace, other ongoing City police, security, and patrol efforts within the DBID.

In addition, the Safety Ambassadors may engage people who are participating in aggressive panhandling to suggest and coordinate support services and will document each incident and activity to track the frequency of illegal and threatening behaviors to mobilize enforcement efforts of those people resisting services.

The Safety Ambassadors will continually circulate through the district to identify the population that is engaged in illegal or threatening behaviors, engage homeless people to build relationships and encourage assistance from social service providers to coordinate service delivery, triage the needs of homeless people to encoura ge appropriate services from provider agencies , and will document all interactions so that these individuals can be prioritized based on need.

Maintenance Services:

The Clean Team will consistently deal with maintenance issues within the DBID by providing services that may consist of:

Sidewalk Maintenance : Uniformed, radio-equipped personnel sweep litter, debris, and refuse from sidewalks, gutters, and public spaces in the DBID, and clean all sidewalk hardscape such as trash receptacles, benches, and parking meters.

Trash Collection : Collector truck personnel to top off trashcans and collect large bulky items illegally dumped in the DBID, as needed.

Graffiti Removal: The Clean Team may remove graffiti
using solvent, pressure washing and/or color matching.

The DBID’s goal is to have a zero-tolerance graffiti policy with removing tags within 48 hours.

Sidewalk Pressure Washing : Pressure wash sidewalks
and public spaces on an as -needed basis. (During
drought years pressure washing may not be permitted.)

Landscape Maintenance : Public landscape areas
including tree wells and planters may be maintained and kept free of litter and weeds. In addition, trees may be planted throughout the DBID to enhance the urban canopy.

Beautification & Placemaking:

In addition to clean and safe services, the DBID budget may include funds for beautification and placemaking improvements that are defined as cosmetic enhancements that improve the appearance and walkability within the District, in turn encouraging customer traffic and improved quality of life for residents. Examples of beautification improvements might include:

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• Street furniture and amenities, such as benches, kiosks and lighting • Design and installation of flowering planters and baskets • Design and installation of art and decorative elements • Holiday décor or tree lighting
• Bicycle racks and other hardware
• Urban design and/or planning services to advance beautification efforts • Other cosmetic enhancements that improve the DBID’s appearance

Special Projects/Project Collaboration:

Special projects may be initiated to tackle issues that are overlooked or items that can leave a lasting impression on stakeholders in the District. Special project opportunities may include security cameras, special lighting, painting of street fixtures such as utility boxes, benches, light poles, etc. The DBID may also use funds to collaborate with the City or any other organization on projects that benefit the District.

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Dimond Business Development and Vitality
The DBID will provide market information and will establish a variety of key economic metrics to be researched, packaged and maintained over time. DBID staff will work with property owners, real estate professionals, and City staff to coordinate and leverage business retention and attraction efforts. Some Business Development and Vitality activities may include:

• Compile and maintain up-to-date market information, including a variety of indicators that will be of interest to potential investors and community influencers • Recruit and retain new businesses with an emphasis on local independent concepts and new services that benefit the properties in the DBID
• One-stop point of contact for all potential new businesses • Assist with new business planning activities

Marketing and Promotions:

It is important to not only provide the services needed in the DBID, but to tell the story of improvement in the DBID. Some of the marketing programs being considered are:

• The development of neighborhood brand and marketing materials • Social media advertising and marketing
• Website development
• Meetings and workshops to promote community engagement • Special events (potentially in collaboration with the DIA) that activate the retail district • Newsletter development and distribution
• Maintenance and mapping of restaurant and retail listings and locations

Management/Advocacy/Reserve/City Fees
All ratepayers within the proposed DBID would share in supporting a variety of activities aimed to influence policies, civic investments, business attraction, public space activation and other improvements and activities that benefit the entire district. A new self -sustaining private/public management organization will be the entity that implements the district-wide improvements. The new organization may undertake activities that could include:

• Advocate on behalf of property and business owners to advance policy responses that are advantageous to the DBID.
• Advance public improvements that can improve the Dimond for a variety of investment sectors, including efforts to improve transportation modes.

Like any business, the DBID will require a professional staff to properly manage programs, communicate with stakeholders and provide overall district leadership. The DBID supports a professional staff that delivers programs and advocates on behalf of the parcels within the District.

Additional administrative costs will include:
• Accounting and annual financial audit
• Insurance
• Program support costs including supplies, equipment and rent • Other administration costs associated with the overhead and administrative support of the program
• City and County assessment collection fees

A reserve is also budgeted to provide a contingency for unforeseen program needs and to provide Dimond BID March 8, 2023
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a cushion for assessment delinquencies. Reserve funds can also be utilized to pay for costs associated with DBID renewal.

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SECTION 4: DBID ASSESSMENT BUDGET

2024 DBID Assessment Budget
The following table outlines the DBID maximum assessment budget for 2024.

EXPENDITURES
TOTAL
BUDGET % of Budget
Clean, Safe, Beautiful, Welcoming Services $160,000 57.14% Dimond Business Development & Vitality $40,000 14.29%
District Management & Advocacy $70,000 25.00%
District Fees & Reserves $10,000 3.57%
Total Expenditures $280,000 100.00%

REVENUES
Assessment Revenues $274,400 98.00%
Other Revenues (1) $5,600 2.00%
Total Revenues $280,000 100.00%
(1) Other non-assessment funding to cover the cost associated with general benefit.

Budget Adjustments
The services proposed for year one of the initial term are the same services that are proposed for subsequent years. Assessments will be subject to an annual increase of up to 5% per year to address changes in the cost of providing services. The determination of annual adjustments in assessment rates will be subject to review and approval by the DBID Board of Directors and the City Council and will be subject to the requirements of the Ordinance.

10-Year Maximum Budget
The following table illustrates the DBID’s maximum annual budget for the 10-year term based on the Year 1 of inventory of development and adjusting it by the maximum 5% increase. In subsequent years, the addition of new development will add assessable square footage that will likely increase the DBID budget to account for additional services needed.

Clean, Safe,
Beautiful
Business
Development Management
Fees,
Reserves Total
Year 1 $160,000 $40,000 $70,000 $10,000 $280,000
Year 2 $168,000 $42,000 $73,500 $10,500 $294,000
Year 3 $176,400 $44,100 $77,175 $11,025 $308,700
Year 4 $185,220 $46,305 $81,034 $11,576 $324,135
Year 5 $194,481 $48,620 $85,085 $12,155 $340,342
Year 6 $204,205 $51,051 $89,340 $12,763 $357,359
Year 7 $214,415 $53,604 $93,807 $13,401 $375,227
Year 8 $225,136 $56,284 $98,497 $14,071 $393,988
Year 9 $236,393 $59,098 $103,422 $14,775 $413,688
Year 10 $248,213 $62,053 $108,593 $15,513 $434,372
Any accrued interest or delinquent payments will be expended in the above categories.

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The cost of DBID improvements and activities may vary in any given year depending on market conditions and the cost of providing those services. Expenditures for each of the line items may be adjusted up or down 10% between them to continue the same level of service. The Board of Directors shall make such determination. In addition, any annual budget surplus, including those created through cost saving measures, unexpected reductions in expenses or unanticipated increases to income, will be rolled into the following year’ s budget. The carryover funds will be applied to the same budget line item as the line item that was the source of the carryover funds.

The budget will be adjusted accordingly consistent with the Management District Plan to adjust for surpluses that are carried forward to ensure that the DBID is spending these funds in a timely manner and is complying with applicable State laws and City policies. Any change in line -item expenditures and/or budget surplus will be approved by the Board of Directors and submitted in the annual report, pursuant to the Oakland BIMD Ordinance.

DBID Renewal
DBID funds, which may consist of rollover funds may be used for the cost of renewing the district.

Bond Issuance
No bonds will be issued to finance improvements.

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SECTION 5: ASSESSMENT METHODOLOGY

General
This Management District Plan provides for the levy of assessments for the purpose of providing services and activities that specially benefit real property in the DBID. These assessments are not taxes for the general benefit of the City but are assessments for the services and activities which confer special benefits upon the real property for which the services and activities are provided.

Land Use Considerations
Each assessed parcel within the DBID specially benefits from the DBID activities but not to the same degree. The proportional special benefit and assessment methodology provides the following land use considerations for Commercial, Residential 4+ units, Government, Non-Profit, and Residential 1-3 units.

• Commercial: These parcels benefit from all the DBID activities that are designed to increase pedestrian traffic, increase sales, enhance the business climate, retain existing businesses as well as attract new businesses , and increase business investment.

Commercial parcels specially benefit from all the DBID activities, and thus will be assessed in direct relationship to the special benefits received. • Residential 4+ units: Residential parcels with 4 or more units, like commercial parcels, specially benefit from all the DBID activities. These parcels are typically income producing and will benefit from a cleaner , safer, and welcoming environment as well as a mo re vibrant destination that in turn attracts renters.
• Government: All publicly owned parcels specially benefit from the Clean, Safe, Beautiful, and Welcoming services as it makes each assessed parcel cleaner and safer. Specifically, these parcels specially benefit from DBID activities, such as, removing graffiti from their buildings, patrolling their sidewalks, connecting the homeless to available resources, or cleaning up any debris or trash and power washing their sidewalks. However, government parcels, unlike commercial and residential parcels with 4+ units will not benefit from the Business Development and Vitality services as they are not intended for commercial use or income generation and therefore, will not be assessed for those services. • Non-Profit and Residential 1 -3 units: Residential with 1-3 units and non-profit parcels receive the same level of service and special benefit from Clean, Safe, Beautiful, and Welcoming service as all other parcels in the DBID by making each of these parcels cleaner and safer and more welcoming. Specifically, these parcels specially benefit from DBID activities, such as removing graffiti from their buildings, patrolling their sidewalks, connecting the homeless to available resources , cle aning up any debris, and power washing their sidewalks. Thus, each of these parcels is assessed for the special benefits received from these services. However, these parcels will not receive special benefit from Business Development and Vitality services (i.e., business development) because those uses are not engaged in commercial or customer attraction activities and will not specially benefit from the increased economic activities. Therefore, they will not be assessed for the Business Development and Vitality services.

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Mixed use parcels that have more than one land use as identified above will be assessed for each portion of that land uses square footage multiplied by the appropriate assessment rate for that land use. Note: The County Assessor’s records are used to determine each parcel’s land use type and building square footage. If a parcel is incorrectly categorized, the property owner may petition for an assessment adjustment pursuant to the Assessment Appeal Procedure in this section.

Change in Property Use: If at any time a parcel within the district boundary changes its use, based on a change in zoning designation, entitlement process or otherwise, it will be subject to the assessment methodology for the new use of that property. For example, if a residential parcel with 1 -3 units changes to a commercial use, then that parcel in subsequent years shall be assessed at the commercial rate. As a result , the DBID may experience the addition or subtraction of assessable lot or building square footage for parcels included and assessed within the DBID boundaries. The modification of use for an assessed parcel within the DBID may then change upwards or downwards the amount of total lot and building square footage assessment for that parcel. In future years, determination of the special benefits bestowed upon individual assessed parcels may change in accordance with the assessment methodology formula listed in this Management District Plan and Engineer’s Report.

Assessment Factors
Each parcel’s proportional special benefit from the DBID activities is determined by analyzing three parcel characteristics: Building Square Footage plus Lot Square Footage, and Linear Street Frontage. These parcel characteristics are an equitable way to identify the proportional special benefit that each of the assessed parcels receive. Building square footage is relevant to the current use of a property and is also closely correlated to the potential pedestrian traffic from each parcel and the demand for DBID activities. The lot square footage reflects the long-term value implications of the improvement district. A parcel’s linear street frontage is relevant to the street level usage of a parcel and the demand for DBID activities. Together, these parcel characteristics serve as the basic unit of measure to calculate how much special benefit each parcel receives in relationship to the district as a whole, which then is the basis to proportionately allocate the cost of the special benefits. The assessable budget is allocated 50% to lot + building square footage, and 50% to linear street frontage.

Building square footage is defined as the total building square footage as determined by the outside measurements of a building. The gross building square footage is taken from the County Assessor’s records.

Lot square footage is defined as the total amount of area within the boundaries of the parcel.

The boundaries of a parcel are defined on the County Assessor parcel maps.

Linear street frontage is defined as the number of linear feet of each parcel that d irectly fronts a street that will receive the DBID activities. Corner lots or whole block parcels will be assessed for each side of the parcels’ street frontage that will receive the DBID services.

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Each one of these characteristics represents the benefit units allocated to each specially benefitted parcel. The total number of assessable benefit units per land use type in the DBID are as follows:

Land Use
Lot + Bldg
Benefit Units
Linear Feet
Benefit Units
Commercial 1,208,503 8,976
Residential 4+ units 244,657 1,098
Government 112,931 918
Non-Profit 51,818 356
Residential 1-3 units 202,642 1,309
TOTAL 1,820,551 12,657

Assessment Methodology
The proportionate special benefit each assessed parcel receives shall be determined in relationship to the entirety of the cost of the DBID services and activities, as noted above. Parcels will be assessed at a rate which is proportionate to the amount of special benefits received from DBID services. Only special benefits are assessable, and these benefits must be separated from any general benefits. As required by the California Constitution Article XIIID Section 4(a), the general benefits of an assessment district must be quantified and separated out so that the cost of the activities that are attributed to general benefit are deducted from the cost assessed against each speciall y benefitted parcel. General benefits are benefits from the DBID services and activities that are not : special in nature, “particular and distinct ,” or over and above the benefits that other parcels receive. The attached Engineer’s Report has calculated that 2.0% of the DBID activities is general in nature and will be funded from sources other than special assessments (see Section E of the Engineer’s Report for discussion of special and general benefits).

Calculation of Assessments
The DBID services and activities will be provided uniformly throughout the district. The cost of the special benefits received from these services is apportioned in direct relationship to each parcel’s lot + building square frontage and linear street frontage as discussed above. Each parcel is assigned a proportionate Benefit Unit for each lot + building square foot and linear street frontage. The budget is then allocated 50% to lot + building square footage, and 50% to linear street frontage, and then divided by the number of Benefit Units for each assessment factor to determine the assessment rate per foot.

Specifically, the assessment rates are calculated as follows:

Total Budget – (Business Development & Vitality + Other Revenues) = $235,200 Assessed to all parcels in the District.

50% of Budget / sum of building + lot SF
($235,200 / 1,820,551) = $0.06046 per building + lot square foot

50% of Budget / linear frontage
($235,200 / 12,657) = $9.29152 per linear foot
Business Development & Vitality – Other Revenues = $39,200 Dimond BID March 8, 2023
Management District Plan Page 16 of 20

Assessed to only Commercial and Residential 4+ units parcels.

50% of Budget / sum of building + lot SF
($235,200 / 1,453,160) = $0.01349 per building + lot square foot

50% of Budget / linear frontage
($235,200 / 10,074) = $1.94566 per linear foot

The total Commercial and Residential 4+ units’ assessment:

Per building + lot square foot = $0.07808 ($0.06046 + $0.01349) Per linear foot = $11.23718 ($9.29152 + $1.94566)

The first year’s maximum assessment rates are as follows:

Land Use Per Lot + Bldg Per Linear
Commercial $0.07808 $11.23718
Residential 4+ units $0.07808 $11.23718
Government $0.06460 $9.29152
Non-Profit $0.06460 $9.29152
Residential 1-3 units $0.06460 $9.29152

The following table illustrates the DBID’s maximum annual assessment rates per foot for the 10- year life term, adjusting it by the maximum 5% annual increase.

Government
Commercial Non-Profit
Residential 4+ Units Residential 1-3 Units
Lot + Bldg SF Linear Feet Lot + Bldg SF Linear Feet
Year 1 $0.07808 $11.23718 $0.06460 $9.29152
Year 2 $0.08199 $11.79904 $0.06783 $9.75610
Year 3 $0.08609 $12.38899 $0.07122 $10.24390
Year 4 $0.09039 $13.00844 $0.07478 $10.75610
Year 5 $0.09491 $13.65886 $0.07852 $11.29390
Year 6 $0.09966 $14.34181 $0.08244 $11.85860
Year 7 $0.10464 $15.05890 $0.08656 $12.45153
Year 8 $0.10987 $15.81184 $0.09089 $13.07410
Year 9 $0.11537 $16.60244 $0.09544 $13.72781
Year 10 $0.12113 $17.43256 $0.10021 $14.41420

Dimond BID March 8, 2023
Management District Plan Page 17 of 20

Sample Parcel Assessments
The first year’s assessment for a Commercial parcel with 5,000 lot square feet + 5,000 building square feet, and 50 linear feet is calculated as follows:

Lot+Building square footage x the assessment rate (10,000 x $0.07808) = $ 780.80 Linear feet x the assessment rate (50 x $11.23718) = $ 561.86 Initial annual parcel assessment $1,342.66

The first year’s assessment for a Residential 1-3 units parcel with 5,000 lot square feet + 2,500 building square feet, and 50 linear feet is calculated as follows:

Lot+Building square footage x the assessment rate (7,500 x $0.06460) = $ 484.50 Linear feet x the assessment rate (50 x $9.29152) = $ 464.58 Initial annual parcel assessment $ 949.08

Annual Assessment Adjustments
Budget Process
Assessments will be subject to an annual increase of up to 5% per year to address changes in the cost of providing services. The determination of annual adjustments in assessment rates will be subject to review and approval by the DBID Board of Directors and City Council and will be subject to the requirements of the Ordinance.

A balanced budget approach is utilized to develop each annual budget within the constraints of the assessment rates. Any annual budget surplus or deficit is tracked by program. Prior year surpluses may be used as deemed necessary by the Board of Directors based on the allocations described in the Management District Plan and subsequent annual reports (Oakland Municipal Code 4.48.200) to the City of Oakland and approved by the Oakland City Council. Funds from an expired District shall be rolled over into the new District if one is established, or returned to the property owners, if one is not established, in accordance with the Streets and Highways (S&H) Code section 36671. However, pursuant to S&H Code section 36660, any excess funds can only be used to benefit the properties which paid them.

DBID Guidelines
Time and Manner for Collecting Assessments
As provided by state law, the DBID assessment will appear as a separate line item on annual property tax bills prepared by the County of Alameda. The Oakland City Clerk’s Office may directly bill any property owners whose special assessment does not appear on the tax rolls for each year of the DBID term. The assessments shall be collected at the same time and in the same manner as for the ad valorem property tax paid to the County of Alameda. These assessments shall provide for the same lien priority and penalties for delinquent payment as is provided for the ad valorem property tax.

However, assessments may be billed directly by the City of Oakland for the first fiscal year of operation or for changes to assessments that occur during an assessment year and are prorated for a part of the year, and then by the County for all subsequent years. Any delinquent assessments owed for the first year will be added to the property tax roll for the following year as delinquent. These assessments shall provide for the same lien priority and penalties for delinquent payment as is provided for the ad valorem property tax. The property owner means any person shown as the owner/taxpayer on the last equaliz ed assessment roll or otherwise Dimond BID March 8, 2023
Management District Plan Page 18 of 20

known to be the owner/taxpayer by the County. The City of Oakland 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.

Disestablishment
State law and the Oakland Municipal Code provide for the disestablishment of the DBID pursuant to an annual review process. Each year that the DBID is in existence, there will be a 30 -day period during which the property owners will have the opportunity to request disestablishment of the District. This 30-day period begins each year on the anniversary day that the District was first established by C ity Council. Within that 30 -day period, if a written petition is submitted by the owners of real property who pay more than 30 percent (30%) of the assessments levied, the DBID may be disestablished. The City Council will hold a public hearing on disesta blishing the DBID prior to doing so.

Duration and Renewal
The DBID will have a ten-year term commencing January 1, 2024, through December 31, 2033.

Any major modifications or new or increased assessments during the term of the DBID that are not consistent with the provisions of this Management District Plan will require a new mail ballot process. At the end of the term, the DBID may use district funds and/or rollover funds to fund the DBID renewal.

Future Development
As a result of continued development, the DBID may experience the addition or subtraction of assessable footage for parcels include d and assessed within the DBID boundaries. The modification of parcel improvements assessed within the DBID may then change upwards or downwards the amount of total footage assessment for these parcels, pursuant to Government Code 53750(h)(3), and such change will be prorated to the date the parcel receives the temporary certificate of occupancy.

In future years, the assessments for the special benefits bestowed upon the included DBID parcels may change in accordance with the assessment methodology formula identified in the Management District Plan and Engineer’s Report provided the assessment rate does not change.

The assessment formula can only be changed in accordance with the provisions of the Ordinance and any other applicable laws.

Assessment Appeal Procedure
Property owners may appeal assessments that they believe are inaccurate. Appeals must be in writing, stating the grounds for appeal and filed with the Board of Directors prior to April 1 of each year. Appeals shall be limited to the current assessment year. Any appeal not filed by April 1 shall not be valid. In any case, appeals will only be considered for the current year and shall not be retroactive.

Dimond BID March 8, 2023
Management District Plan Page 19 of 20

SECTION 6: DBID GOVERNANCE

City Council
Following the submission of petitions from property owners representing more than 30% of the assessments to be paid, the City Council, upon holding a public hearing on the proposed DBID, may renew the DBID. The DBID is renewed by a City Council resolution, including the levy of an assessment on property, if the assessment is first approved by parcel owners in a balloting process.

DBID Governance
Prior to adopting a resolution establishing the DBID, the Oakland City Council shall appoint a BID Board of Directors (“Board of Directors”), as outlined in Section 4.48.190 of the Oakland BIMD Ordinance. The Board of Directors shall make a recommendation to the City Council on the expenditure of revenues derived from the levy of assessments, on the classification of properties applicable, and on the method and basis of levying the assessments. The Board of Directors shall be comprised of property owners (or their designee), and at least three (3), community member(s) who are not also a property owner within the District. At no point shall more than 30% of the Board be comprised by non-property owners or their designees.

The Board of Directors determines budgets, assessment adjustments and monitors service delivery. The Board of Directors shall also prepare an annual report for each fiscal year, except the first year, for which assessments are to be levied (Oakland Municipal Code 4.48.200). Eac h annual report must be filed with the City Clerk. The City Council may approve the annual report as filed, or may modify any particulars contained in the report, and then approve it as modified (Oakland Municipal Code 4.48.200 (C)).

Pursuant to the Ordinance, the Board of Directors is subject to disclosure and notification guidelines set by the Ralph M. Brown Act and California Public Records Act when conducting DBID business.

Dimond BID March 8, 2023
Management District Plan Page 20 of 20

SECTION 7: IMPLEMENTATION TIMELINE

For the DBID to meet the start-up date of January 1, 2024, the formation process needs to adhere to the following schedule:

Renewal Schedule Dates
Draft Management District Plan and Engineer’s Report - City Review February 2023 Petitions distributed to property owners Early March 2023 Education campaign to obtain signed petitions: 30% weighted vote targeting
March – April 2023
City Council accepts petitions; adopts resolution of intention to consider establishment; sets a public hearing; accepts the Engineer’s Report; authorizes the mailing of ballots
May 16, 2023
City Council holds public hearing and tabulates assessment ballots, adopts resolution approving the district formation and levying of the assessments
July 18, 2023

ATTACHMENT A: ASSESSMENT ROLL

APN Owner Name Site Address Land Use Lot + Bldg
Linear
Frontage Parcel Assmt
23-498-1-1 1853-1855 Macarthur Blvd Llc 1853 Macarthur Blvd Comm 9,902 120 $2,121.65 29A-1302-51 2114 Macarthur Llc 2114 Macarthur Blvd Comm 13,108 229 $3,596.84 28-906-20 2257 Mac Arthur Boulevard Llc 2257 Macarthur Blvd Res 1-3 units 4,760 38 $655.91 29-990-38 2630 Mac Llc 2630 Macarthur Blvd Res 4+ units 6,930 52 $1,125.45 28-900-15 2706 School Street Llc 3100 Fruitvale Ave Comm 11,507 53 $1,494.08 29A-1301-20 Alawdi Abdo A & Alawdi Ali M T 2020 Macarthur Blvd Comm 14,107 104 $2,270.19 28-914-1 Alicia Mcdaniel 2601 Macarthur Blvd Res 1-3 units 4,944 39 $681.73 29-990-39 Angela & Yeira Howell 2620 Macarthur Blvd Res 1-3 units 8,964 63 $1,164.40 26-835-10-2 Aventis Dimond Llc 3405 Dimond Ave Res 4+ units 16,406 165 $3,135.18 29A-1302-52 Bank Of America N T & S A 2154 Macarthur Blvd Comm 45,051 411 $8,136.23 26-834-1 Bansal Inc 3333 Fruitvale Ave Comm 3,857 144 $1,919.32 26-834-22-1 Bansal Inc 2120 Montana St Comm 14,214 66 $1,851.54 26-836-6 Barnett Bonnie & Wallerstein E 3443 Fruitvale Ave Comm 7,000 50 $1,108.44 29A-1301-22 Bell Phillip R Tr 2000 Macarthur Blvd Comm 5,757 43 $927.11 28-905-13-2 Bombera Llc 3455 Champion St Comm 6,530 40 $959.37 28-905-9 Bombera Llc 3461 Champion St Comm 1,712 81 $1,043.89 26-836-9 Bouabane Go & Khamphoui Tasoulinh 3425 Fruitvale Ave Comm 3,465 30 $607.68 28-914-2 Can Duong 2609 Macarthur Blvd Res 1-3 units 5,663 43 $765.34 28-910-4 Chen Jerry & Betty Trs 2575 Macarthur Blvd Comm 13,164 117 $2,342.64 29A-1304-26-5 Chin Vincent Y & Grace L Trs 2216 Macarthur Blvd Comm 31,570 90 $3,470.83 29A-1304-23 Chin Vincent Y & Grace L Trs May Ct Comm 3,271 42 $727.37 29A-1304-25 Chin Vincent Y & Grace L Trs Macarthur Blvd Comm 4,800 40 $824.29 29A-1304-27-3 Chin Vincent Y & Grace L Trs 3530 Fruitvale Ave Comm 4,850 41 $839.43 29A-1304-27-6 Chin Vincent Y & Grace L Trs 3510 Fruitvale Ave Comm 30,477 274 $5,460.99 29A-1304-28-1 Chin Vincent Y & Grace L Trs 3544 Fruitvale Ave Comm 9,538 62 $1,441.47 29-991-20 Chuong Robert & Christina L Tr 3504 Wilson Ave Res 1-3 units 4,240 38 $626.96 29-991-19 Church Of Living God The Pilla 2578 Macarthur Blvd Non-Profit 7,472 40 $854.32 26-836-3 Cindy Le & Linda Thai 2117 Macarthur Blvd Comm 8,809 46 $1,204.75 26-836-11-2 City Of Oakland Sloan St Govt 3,300 60 $770.66 26-836-13 City Of Oakland 3400 Dimond Ave Govt 4,400 135 $1,538.58

APN Owner Name Site Address Land Use Lot + Bldg
Linear
Frontage Parcel Assmt
26-836-14-1 City Of Oakland 3408 Dimond Ave Govt 2,700 0 $174.41 26-836-14-2 City Of Oakland 3408 Dimond Ave Govt 3,600 45 $650.66 26-836-15 City Of Oakland 3416 Dimond Ave Govt 57,400 41 $4,088.75 28-906-35 City Of Oakland Lincoln Ave Govt 2,317 162 $1,654.90 28-906-36 City Of Oakland Lincoln Ave Govt 2,535 135 $1,418.11 29A-1302-13 City Of Oakland 3571 Fruitvale Ave Govt 7,049 40 $827.00 29A-1302-14 City Of Oakland 3565 Fruitvale Ave Govt 14,100 100 $1,839.95 26-835-1 Craycroft Corner Llc 2011 Macarthur Blvd Comm 23,134 80 $2,705.36 28-914-5 Daisy & Nancy Wu 2629 Macarthur Blvd Res 1-3 units 5,456 40 $724.10 29A-1302-18 Dimond Alley Llc 3525 Fruitvale Ave Comm 14,400 48 $1,663.79 28-900-1 Donald Busk 3166 Fruitvale Ave Comm 10,576 50 $1,387.67 28-900-18 Donald Busk 3124 Fruitvale Ave Comm 8,845 45 $1,196.32 28-900-22 Donald Busk 3154 Fruitvale Ave Comm 6,250 50 $1,049.88 28-900-21 Donald Busk 3148 Fruitvale Ave Res 1-3 units 8,785 50 $1,032.05 28-906-18 Douglas Freitas 2251 Macarthur Blvd Comm 8,465 335 $4,425.43 29A-1302-17 Enrique & Nancy Ham 3537 Fruitvale Ave Comm 14,738 42 $1,622.76 26-835-2 Esha Hamid 2025 Macarthur Blvd Comm 5,536 32 $791.86 28-906-38 Evan Fortin & Allyson Dearman 2453 Macarthur Blvd #1 Res 1-3 units 4,583 10 $388.96 28-906-17-2 Ever Wisdom Llc 3464 Champion St Res 4+ units 11,060 90 $1,874.95 29-991-16 Farzaneh Hamid & Niloufar Trs 3511 Laguna Ave Res 1-3 units 6,168 39 $756.15 29-990-37 Federico Ramos 3503 Rhoda Ave Res 4+ units 4,552 43 $838.64 28-915-4 Fruitvale Presby Church 2735 Macarthur Blvd Non-Profit 13,595 143 $2,206.87 28-905-10 Fruitvale Properties Inc 3438 Fruitvale Ave Comm 14,400 80 $2,023.38 28-900-19-1 Fv I Llc 3136 Fruitvale Ave Comm 34,237 110 $3,909.44 28-916-26-2 George Dy 2818 Macarthur Blvd Comm 3,846 194 $2,480.32 29-991-17 Gerontides Maria Tr 2596 Macarthur Blvd Res 1-3 units 4,920 40 $689.47 26-832-17 Gibbons Family Trust 3215 Fruitvale Ave Res 1-3 units 5,785 45 $791.81 28-905-12-1 Goodhue Neil B & Diane C Trs & 3426 Fruitvale Ave Comm 66,354 256 $8,057.88 28-905-8 Grsk Developments Llc 3463 Champion St Comm 2,444 38 $617.85 29A-1301-19-2 Gsd Withholdings Llc 2024 Macarthur Blvd Comm 12,834 65 $1,732.54 28-906-32 Guide Gerlitz & Gillian Bailey 2447 Macarthur Blvd Res 1-3 units 4,186 40 $642.06 28-910-1-1 Harold Koojoolian 2551 Macarthur Blvd Comm 8,288 87 $1,624.79 28-909-2-1 Ho & Miu Wong 2525 Macarthur Blvd Res 1-3 units 6,248 46 $831.00

APN Owner Name Site Address Land Use Lot + Bldg
Linear
Frontage Parcel Assmt
29A-1304-24 Hoey Janis G Tr & Richards Che 2240 Macarthur Blvd Res 4+ units 19,900 157 $3,318.10 23-498-14-1 Housing Authority Of The City 2003 Macarthur Blvd Govt 12,195 162 $2,292.97 28-906-30 Jackman William E & Rosa I Trs 2433 Macarthur Blvd Comm 4,290 40 $784.47 27-860-26-3 Jamee Inc 3066 Fruitvale Ave Comm 19,750 151 $3,238.97 28-905-13-3 Jean Smith & Randy Riggins 3451 Champion St Res 4+ units 12,526 60 $1,652.31 29-989-24 Jian Shen 2700 Macarthur Blvd Comm 4,200 45 $833.62 29-991-18 John Konstantin 2584 Macarthur Blvd Comm 3,933 40 $756.59 26-832-18 John Thompson 3207 Fruitvale Ave Res 1-3 units 5,376 42 $737.51 28-906-40 Johnny Tan 3475 Boston Ave #3 Res 1-3 units 4,592 10 $389.54 26-835-9 Joyce Olson Trust 3415 Dimond Ave Res 4+ units 13,772 50 $1,637.23 29-992-16 Julian Geaga & Maria Nocedal 2536 Macarthur Blvd Res 1-3 units 4,724 38 $658.23 26-836-8 Kayl Sherry M Tr 3431 Fruitvale Ave Comm 5,485 21 $664.27 26-836-16 Kayl Sherry M Tr 3424 Dimond Ave Res 4+ units 9,693 47 $1,285.01 28-904-24-2 Kerwood Apartments Llc 2401 Harold St Comm 3,054 19 $451.97 28-904-24-3 Kerwood Apartments Llc 3220 Fruitvale Ave Comm 19,550 100 $2,650.25 28-915-3 Khatibi Mo Tr 2715 Macarthur Blvd Res 1-3 units 5,056 40 $698.26 26-835-6-1 Ki & Sarah Chung 2055 Macarthur Blvd Comm 13,664 228 $3,629.01 28-905-2-1 Kim In N & Hyun T Trs 2205 Macarthur Blvd Comm 5,524 39 $869.58 26-836-10 Kinder Co 3417 Fruitvale Ave Comm 13,200 66 $1,772.36 26-836-11-3 Kinder Co 3401 Fruitvale Ave Comm 21,500 240 $4,375.72 29A-1304-29-4 Kinder Co 3550 Fruitvale Ave Comm 82,098 171 $8,332.07 29A-1304-31-1 Kinder Co 3550 Fruitvale Ave Comm 11,200 80 $1,773.51 29A-1304-33 Kinder Co 3550 Fruitvale Ave Comm 3,200 40 $699.36 29-992-17 Konstantin Karl & Vasiliki Trs 2526 Macarthur Blvd Comm 3,733 38 $718.50 29A-1304-12 L Z East Bay Commercial Enterp 2276 Macarthur Blvd Res 4+ units 13,940 50 $1,650.35 29A-1301-17-2 Las Lomas Llc 3519 Dimond Ave Comm 7,210 50 $1,124.84 29A-1301-18 Las Lomas Llc 2042 Macarthur Blvd Comm 11,400 155 $2,631.92 28-905-4 Leavenworth Evilo Tr 2225 Macarthur Blvd Comm 7,176 39 $998.58 26-835-8 Lee Trenton H & Ling Ming C Tr 3429 Dimond Ave Res 1-3 units 11,105 50 $1,181.91 29-993-20-1 Lincoln Court Associates 2400 Macarthur Blvd Res 4+ units 109,000 317 $12,073.31 28-905-26-8 Longs Drug Stores Inc 3320 Fruitvale Ave Comm 110,732 767 $17,265.28 24-518-8-1 Lum Dale N & Po Y Trs 1940 E 38th St Comm 4,987 124 $1,782.81 29A-1301-19-3 Madison Huey P Jr & Taras W Tr 3511 Dimond Ave Comm 3,326 35 $653.01

APN Owner Name Site Address Land Use Lot + Bldg
Linear
Frontage Parcel Assmt
29A-1301-21 Magwili Emilia L Tr 2010 Macarthur Blvd Comm 6,968 45 $1,044.14 29-992-18 Marr Michael W & Catrina L Trs 2518 Macarthur Blvd Res 1-3 units 4,622 38 $651.64 23-498-30-1 Martin & Rebecca Deltoro 2002 Montana St Comm 7,820 47 $1,138.76 28-915-1-1 Mayorga Danilo Tr 2701 Macarthur Blvd Comm 4,658 40 $813.20 29-992-30 Mejvm Llc 2500 Macarthur Blvd Comm 5,150 78 $1,278.63 29A-1302-12 Mejvm Llc 3577 Fruitvale Ave Comm 8,382 40 $1,103.98 26-832-19-2 Mendoza Carlos M & Teresa Trs 2580 Pleasant St Res 1-3 units 5,996 42 $777.56 26-836-1 Mendoza Carlos M & Teresa Trs 2101 Macarthur Blvd Comm 13,036 193 $3,186.67 26-836-2 Mendoza Magdalena & Gerardo Tr 2109 Macarthur Blvd Comm 11,684 46 $1,429.24 28-905-7 Mirmalek Mohamad R & Rafsanjan 3475 Champion St Comm 15,926 90 $2,254.91 28-906-39 Miyoko Miyata 3473 Boston Ave #2 Res 1-3 units 4,132 10 $359.83 28-906-41 Miyoko Miyata & Alesandro Ratti 3477 Boston Ave #4 Res 1-3 units 4,592 10 $389.54 29A-1304-14 Mohamed Ahmed 2258 Macarthur Blvd Comm 14,378 100 $2,246.41 29-989-19 Mulberri House Llc 2734 Macarthur Blvd Res 1-3 units 4,483 37 $633.37 26-836-7 Nguyen Loan Phuc 3435 Fruitvale Ave Comm 6,816 32 $891.81 26-836-17 Nguyen Loan Phuc 3432 Dimond Ave Res 1-3 units 8,628 47 $994.03 26-835-7 Nima Gabbay 3435 Dimond Ave Res 1-3 units 10,178 50 $1,122.03 28-900-16 Nobe Re Llc 3116 Fruitvale Ave Comm 9,193 45 $1,223.50 28-900-17 Nobe Re Llc 3120 Fruitvale Ave Comm 8,144 45 $1,141.59 28-906-19 Noe & Martha Juarez 2255 Macarthur Blvd Res 1-3 units 4,601 33 $603.83 28-906-22-3 P G & E Co 135-1-24a-1 Macarthur Blvd Govt 3,335 38 $568.50 26-832-16-2 Patino Jose & Aurora Y Trs 3221 Fruitvale Ave Comm 6,224 45 $991.67 29-990-40 Peter & Ana Holtz 2612 Macarthur Blvd Comm 5,584 52 $1,020.35 29-990-41 Peter & Ana Holtz 2600 Macarthur Blvd Comm 4,521 56 $982.30 29A-1302-11 Ping Leung & Gung Wong 3589 Fruitvale Ave Res 1-3 units 8,950 40 $949.79 29-989-20 Rebecca Courry & Daniel Zamani 2728 Macarthur Blvd Res 1-3 units 4,250 35 $599.74 29A-1304-13 Regan John A & Regan Pauline T 2264 Macarthur Blvd Res 1-3 units 9,207 50 $1,059.31 28-906-29-1 Regent 140 Llc 2425 Macarthur Blvd Res 4+ units 26,878 67 $2,851.62 28-904-23-2 Roman Catholic Bishop Of Oakla 2620 Pleasant St Non Profit 30,751 173 $3,593.82 29-989-23 Ruth Carano 2712 Macarthur Blvd Comm 1,831 62 $839.68 28-906-21 Sacramento Ceferino M & Letici 2261 Macarthur Blvd Comm 4,590 38 $779.80 28-905-6 Sakkis Theodore J & Maria Trs 3483 Champion St Comm 4,356 27 $643.54 29-992-14 Schleicher Robert E Jr & Joyce 2548 Macarthur Blvd Comm 3,733 38 $718.50

APN Owner Name Site Address Land Use Lot + Bldg
Linear
Frontage Parcel Assmt
28-906-27-1 Sej Asset Management & Investm 2411 Macarthur Blvd Comm 20,178 249 $4,373.63 28-905-26-1 Shin Sung J & Teressa Trs 3400 Fruitvale Ave Comm 7,616 40 $1,044.17 28-909-3 Shun Mei & Amy Xu 3483 Wilson Ave Comm 6,329 130 $1,955.03 29A-1304-11 Siri & Karl Jacobs 3505 Lincoln Ave Res 1-3 units 7,739 49 $955.19 29A-1302-15 Slvc Incorporated 3553 Fruitvale Ave Comm 7,000 40 $996.07 29A-1302-16-1 Slvc Incorporated 3545 Fruitvale Ave Comm 14,769 40 $1,602.71 29A-1302-29-1 Slvc Incorporated 3530 Dimond Ave Comm 5,250 40 $859.43 26-835-4 Sophie Chen & Doug Lin 2039 Macarthur Blvd Comm 11,975 40 $1,384.54 26-836-4-1 Stanton A Silver Revocable Trust 3465 Fruitvale Ave Comm 17,466 220 $3,835.99 28-914-4 Tai & Bik Tam 2621 Macarthur Blvd Res 1-3 units 5,133 40 $703.23 28-910-3 Tam Alice Tr & Yin Xiu Q 2565 Macarthur Blvd Comm 3,913 43 $788.74 29-992-15 Tam Cheung S & Lan M Trs 2542 Macarthur Blvd Res 1-3 units 4,991 38 $675.48 28-915-2-1 The Maria A Alonso Living Trus 2707 Macarthur Blvd Res 1-3 units 4,981 40 $693.41 28-906-31 Tselentis Sofia M & Jordan Eva 2441 Macarthur Blvd Res 1-3 units 4,604 40 $669.06 28-905-11-2 Wells Fargo Bank 2215 Champion St Comm 12,727 98 $2,095.01 28-905-1 Wells Fargo Bank 3450 Fruitvale Ave Comm 3,434 87 $1,245.77 28-905-5 Wells Fargo Bank 2229 Macarthur Blvd Comm 4,464 35 $741.87 29-989-21 Wendy Holm 2724 Macarthur Blvd Comm 7,172 35 $953.32 29-989-22 Wendy Holm 2716 Macarthur Blvd Comm 8,020 54 $1,227.42 28-909-1-1 West 10th Macarthur Llc 2501 Macarthur Blvd Comm 8,189 130 $2,100.26 26-835-3 Woo Robert C & Liu Susie Trs 2033 Macarthur Blvd Comm 8,856 40 $1,141.00 28-914-3 Ying Tao 2615 Macarthur Blvd Comm 5,742 40 $897.84 28-916-27-2 Yu Raymond W & Grace S Trs 2833 Macarthur Blvd Comm 19,238 177 $3,491.15 28-916-43-4 Yu Raymond W & Grace S Trs 2800 Georgia St Comm 12,402 238 $3,642.84 28-916-43-5 Yu Raymond W & Grace S Trs 2844 Georgia St Comm 44,521 0 $3,476.36 TOTAL ASSESSMENT: 1,820,551 12,657 $274,400.00

ATTACHMENT B

Dimond
Business Improvement District
Engineer’s Report

Oakland, California
February 24, 2023

Prepared by:

Kristin Lowell Inc.

Article XIIID of the California State Constitution and the State of California Property and Business Improvement District Law of 1994 and augmented by the City of Oakland Business Improvement Management District Ordinance 12190, Chapter 4.48 of the Oakland Municipal Code, as amended July 21, 2015, to authorize a Community Benefit District

TABLE OF CONTENTS

ENGINEER’S STATEMENT ................................................................................. 1 ENGINEER’S REPORT:

SECTION A: Legislative and Judicial Review .................................................. 2 SECTION B: Improvements and Activities....................................................... 4 SECTION C: Benefitting Parcels ....................................................................... 5 SECTION D: Proportional Benefits ................................................................... 7 SECTION E: Special and General Benefits .................................................... 10 SECTION F: Cost Estimate .............................................................................. 14 SECTION G: Apportionment Method .............................................................. 15

Attachment B:

Dimond BID Engineer’s Report Page 1 of 17

This Engineer’s Report is prepared pursuant to Article XIIID of the California State Constitution and the State of California Property and Business Improvement District Law of 1994 (California Streets and Highways Code § 36600 et seq.) (the “Ordinance”).

The Dimond Business Improvement District (“ DBID”) will provide activities either currently not provided or above and beyond what the City of Oakland (“City”) provides. These activities will specially benefit each individual assessable parcel in the DBID. Every individual assessed parcel within the DBID receives special benefit from the activities identified under Section B of this Engineer’s Report. Only those individual assessed parcels within the DBID receive the special benefit of these proposed activities; parcels contiguous to and outside the DBID and the public at large may receive a general benefit, as outlined in Section E. The cost to provide general benefits, if any, will be funded from sources other than special assessments.

The duration of the DBID renewal is ten (10) years, commencing January 1, 2024. An estimated budget for the DBID improvements and activities is set forth in Section D. Assessments will be subject to an annual increase of up to 5% per year as determined by the DBID Board of Directors.

Assessment increases must stay between 0 % and 5% in any given year. Funding for the DBID services and activities shall be derived from a property -based assessment of each specially benefitted parcel in the DBID. A detailed description of the methodology for determining the proportional special benefit each individual assessable parcel receiv es from the service and the assessment for each parcel is set forth in Section F.

I hereby certify to the best of my professional knowledge that each of the identified assessable parcels located within the DBID will receive a special benefit which is a particular and distinct benefit over and above general benefits conferred on real pro perty located in a district or to the public at large and that the amount of the proposed special assessment is proportional to, and no greater than, the special benefits received.

Respectfully submitted,

Terrance E. Lowell, P.E.

ENGINEER’S STATEMENT

Attachment B:

Dimond BID Engineer’s Report Page 2 of 17

SECTION A: LEGISLATIVE AND JUDICIAL REVIEW

Property and Business Improvement District Law of 1994
The Ordinance is the legislation that authorizes the City to levy assessments upon real property for the purposes of providing improvements and activities that specially benefit each individual assessed parcel in the DBID. The purpose of the DBID is to encourage commerce, investment, and business activities . In order to meet these goals BIDs typically fund activities and improvements, such as, enhanced safety and cleaning. Unlike other assessment districts which fund the construction of public capital improvements or maintenance thereof, BIDs provide activities and improvements “to promote the economic revitalization and physical maintenance of the business districts of its cities in order to create jobs, attract new businesses, and prevent the erosion of the business districts.” (Streets and Highways Code Section 36601(b)). The improvements and activities funded through the DBID are over and above those already provided by the City within the DBID’s boundaries. Each of the DBID activities or improvements is intended to increase building occupancy and lease rates, to encourage new business development, attract businesses that benefit the parcels, and improve the economic vitality of parcels.

Specifically, the State Law defines “Improvements” and “Activities” as follows:

"Improvement" means the acquisition, construction, installation, or maintenance of any tangible property with an estimated useful life of five years…”1

"Activities" means, but is not limited to, all of the following:
(a) Promotion of public events which benefit businesses or real property in the district. (b) Furnishing of music in any public place within the district. (c) Promotion of tourism within the district.
(d) Marketing and economic development, including retail retention and recruitment. (e) Providing safety, sanitation, graffiti removal, street and sidewalk cleaning, and other municipal services supplemental to those normally provided by the municipality. (f) Activities which benefit businesses and real property located in the district.2

The State Law also defines special benefit as “…for purposes of a property -based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special bnefits does not make the benefits general.”3

As of July 19, 2022, the State Law , Section 36615.5 (b), was amended to further define special benefit as it relates to the improvements and activities these districts provide. Specifically, the amendment states: “‘Special benefit’ also includes, for purposes of a property -based district, a particular and distinct benefit provided directly to each assessed parcel within the district. Merely because parcels throughout an assessment district share the same special benefit does not make the benefits general.”

1 California Streets and Highways Code, Section 36610.
2 California Streets and Highways Code, Section 36613.
3 California Streets and Highways Code, Section 36615.5(b) Attachment B:

Dimond BID Engineer’s Report Page 3 of 17

Article XIIID of the State Constitution
In 1996, California voters approved Proposition 218, codified in part as Article XIIID of the State Constitution. Among other requirements, Article XIIID changes the way local agencies enact local taxes and levy assessments on real property. It states, in relevant part, that:

(a) An agency which proposes to levy an assessment shall identify all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed. The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of a public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided. No assessment shall be imposed on any parcel which exceeds the reasonable cost of the proportional special benefit conferred on that parcel.

Only special benefits are assessable, and an agency shall separate the general benefits from the special benefits conferred on a parcel. 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. (b) All assessments shall be supported by a detailed engineer's report prepared by a registered professional engineer certified by the State of California.4

"Special benefit" means a particular and distinct benefit over and above general benefits conferred on real property located in the district or to the public at large. General enhancement of property value does not constitute "special benefit."5

Judicial Guidance
Since the enactment of Article XIIID, the courts have rendered opinions regarding various aspects of Article XIIID. The notable portion of a case that applies to BIDs in particular is noted below.

“The engineer’s report describes the services to be provided by the BID [i.e. the BID]; (1) security, (2) streetscape maintenance (e.g., street sweeping, gutter cleaning, graffiti removal), and (3) marketing, promotion, and special events. They are all services over and above those already provided by the City within the boundaries of the BID. And they are particular and distinct benefits to be provided only to the properties with in the BID, not to the public at large—they ‘affect the assessed property in a way that is particular and distinct from [their] effect on other parcels and that real property in general and the public at large do not share.’”6

The contents of this Engineer’s Report are prepared in compliance with the above noted authorizing Ordinance, the State Constitution and the judicial opinion.

4 Section 4, Article XIIID of the State Constitution.
5 Section 2 (i), Article XIIID of the State Constitution. 6 Dahms v. Downtown Pomona Property and Business Improvement District (2009) 174 Cal.App. 4th 708, 722.

Attachment B:

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SECTION B: IMPROVEMENTS AND ACTIVITIES

The DBID Steering Committee collectively determined the priority for improvements and activities that the DBID will deliver. Accordingly, the DBID will provide the services, as described in greater detail in Section 3 of this Management District Plan: Clean, Safe, Beautiful & Welcoming; Dimond Business Development and Vitality; and Management/Reserve/City Fees.

Attachment B:

Dimond BID Engineer’s Report Page 5 of 17

SECTION C: BENEFITTING PARCELS

DBID Boundary Description
The DBID generally includes parcels that front MacArthur Boulevard from E 38th Street to Coolidge Avenue, on Fruitvale Avenue from Coloma Street to School Street, and on Dimond Avenue from MacArthur Boulevard to Bienati Way, as described in detail in Section 2 of this Management District Plan.

A map of the proposed district boundary is on the following page.

Attachment B:

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Attachment B:

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SECTION D: PROPORTIONAL BENEFITS

Methodology
Article XIIID Section 4(a) of the State Constitution states that “The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of the public improvement, the maintenance and operation expenses of a public improvement, or the cost of the property related service being provided.”

Determining the proportionate special benefit for the parcels of real property within the proposed assessment district which benefit from the proposed improvements, services, and activities is the result of a four-step process:

1. Defining the proposed activities,

2. Determining which parcels specially benefit from the proposed activities,

3. Determining the amount of special benefit each parcel receives,

4. Determining the proportional special benefit a parcel receives in relation to the amount of special benefit all other parcels in the DBID receive after subtracting any general benefit.

Each identified parcel within the DBID will be assessed based upon each parcel’s unique characteristics in relationship to all other specially benefitted parcels’ characteristics. Due to the proportionate special benefits received by each parcel from the DBID services, each parcel will be assessed a rate which is commensurate with the amount of special benefits received.

Special Benefit Factor
Each parcel’s proportional special benefit from the DBID activities is determined by analyzing three parcel characteristics: Building Square Footage plus Lot Square Footage, and Linear Street Frontage. These parcel characteristics are an equitable way to identify the proportional special benefit that each of the assessed parcels receive. Building square footage is relevant to the current use of a property and is also closely correlated to the potential pedestrian traffic from each parcel and the demand for DBID activities. The lot square footage reflects the long-term value implications of the improvement district. A parcel’s linear street frontage is relevant to the street level usage of a parcel and the demand for DBID activities. Together, these parcel characteristics serve as the basic unit of measure to calculate how much special benefit each parcel receives in relationship to the district as a whole, which then is the basis to proportionately allocate the cost of the special benefits. The assessable budget is allocated 50% to lot + building square footage, and 50% to linear street frontage.

Lot square footage is defined as the total amount of area within the boundaries of the parcel.

The boundaries of a parcel are defined on the County Assessor parcel maps.

Linear street frontage is defined as the number of linear feet of each pa rcel that directly fronts a street that will receive the DBID activities. Corner lots or whole block parcels will be assessed for each side of the parcels’ street frontage that will receive the DBID services.

Each one of these characteristics represents t he benefit units allocated to each specially benefitted parcel. The total number of assessable benefit units per land use type in the DBID are Attachment B:

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as follows:

Property Use Considerations
Each assessed parcel within the DBID specially benefits from the DBID activities but not to the same degree. The proportional special benefit and assessment methodology provides the following land use considerations for Commercial, Residential 4+ units, Government, Non-Profit, and Residential 1-3 units.

Commercial parcels specially benefit from all the DBID activities, and thus will be assessed in direct relationship to the special benefits received.

• Residential 4+ units: Residential parcels with 4 or more units, like commercial parcels, specially benefit from all the DBID activities. These parcels are typically income producing and will benefit from a cleaner, safer, and welcoming environment as well as a more vibrant destination that in turn attracts renters.

• Government: All publicly owned parcels specially benefit from the Clean, Safe, Beautiful, and Welcoming services as it makes each assessed parcel cleaner and safer. Specifically, these parcels specially benefit from DBID activities, such as, removing graffiti from their buildings, patrolling their sidewalks, connecting the homeless to available resources, or cleaning up any debris or trash and power washing their sidewalks. However, government parcels, unlike commercial and residential parcels with 4+ units will not benefit from the Business Development and Vitality services as they are not intended for commercial use or income generation and therefore, will not be assessed for those services.

• Non-Profit and Residential 1 -3 units: Residential with 1-3 units and non-profit parcels receive the same level of service and special benefit from Clean, Safe, Beautiful, and Welcoming service as all other parcels in the DBID by making each of these parcels cleaner and safer and more welcoming. Specifically, these parcels specially benefit from DBID activities, such as removing graffiti from their buildings, patrolling their sidewalks, connecting the homeless to available resources , cleaning up any de bris, and power washing their sidewalks. Thus, each of these parcels is assessed for the special benefits received from these services. However, these parcels will not receive special benefit from Business Development and Vitality services (i.e., business development) because those Attachment B:

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uses are not engaged in commercial or customer attraction activities and will not specially benefit from the increased economic activities. Therefore, they will not be assessed for the Business Development and Vitality services.

Change in Property Use: If at any time a parcel within the district boundary changes its use, based on a change in zoning designation, entitlement process or otherwise, it will be subject to the assessment methodology for the new use of that property. For example, if a residential parcel with 1 -3 units changes to a commercial use, then that parcel in subsequent years shall be assessed at the commercial rate. As a result , the DBID may experience the addition or subtraction of assessable lot or building square footage for parcels included and assessed within the DBID boundaries. The modification of use for an assessed parcel within the DBID may then change upwards or downward s the amount of total lot and building square footage assessment for that parcel. In future years, determination of the special benefits bestowed upon individual assessed parcels may change in accordance with the assessment methodology formula listed in this Management District Plan and Engineer’s Report.

Attachment B:

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SECTION E: SPECIAL and GENERAL BENEFITS

Special Benefit Defined
State Law, Proposition 218, and judicial opinions require that assessments be levied according to the estimated special benefit each assessed parcel receives from the activities and improvements. Article XIIID Section 4(a) of the California Constitution i n part states that “only special benefits are assessable”.

The State Law defines special benefit as “…for purposes of a property-based district, a particular and distinct benefit over and above general benefits conferred on real property located in a district or to the public at large. Special benefit includes incidental or collateral effects that arise from the improvements, maintenance, or activities of property -based districts even if those incidental or collateral effects benefit property or person s not assessed. Special benefit excludes general enhancement of property value.”7

Furthermore, the amendment (Section 36622(k)(3)) states: “In a property -based district, properties throughout the district may share the same special benefits. In a district with boundaries that define which parcels are to receive improvements, maintenance, or activities over and above those services provided by the city, the improvements, maintenance, or activities themselves may constitute a special benefit. The city may impose assessments that are less than the proportional special benefit conferred but shall not impose assessments that exceed the reasonable costs of the proportional special benefit conferred. Because one or more parcels pay less than the special benefit conferred does not necessarily mean that other parcels are assessed more than the reasonable cost of their special benefit.”

Special Benefit Analysis
All special benefits derived from the assessments outlined in this Report are for property-related activities that are specifically intended for and directly benefiting each individual assessed parcel in the BID. The special benefit must affect the individual assessable parcel in a way that i s particular and distinct from its effect on other parcels and that real property in general and the public at large do not share. No parcel’s assessment shall be greater than the special benefits received.

Streets and Highways Code Section 36601€ state s that “Property and business improvement districts formed throughout this state have conferred special benefits upon properties and businesses within their districts and have made those properties and businesses more useful by providing the following bene fits: (1) Crime reduction. A study by the Rand Corporation has confirmed a 12-percent reduction in the incidence of robbery and an 8 -percent reduction in the total incidence of violent crimes within the 30 districts studied. (2) Job creation. (3) Business

7 California Streets and Highways Code, Section 36615.5(a) Attachment B:

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attraction. (4) Business retention. (5) Economic growth. (6) New investments.”

The DBID’s goal is to fund activities and improvements to provide a cleaner , safer and more welcoming environment as outlined in Section B. The goal of improving the economic vitality is to improve the safety and cleanliness of each individual specially benefitted parcel in an effort to increase commerce, to increase building occupancy and lease rates and to attract more customers, employees, tenants and investors.

Each parcel will specially benefit from the proposed services, but may not to the same degree:

• Cleaner sidewalks, streets and common areas
• Real and perceived public safety improvements
• Greater pedestrian traffic
• Enhanced rental incomes
• Improved business climate
• New business and investment
• Well managed BID programs and services

Specifically, each parcel benefits from each of the DBID activities as defined below.

Clean, Safe, and Beautiful
The enhanced safety activities make the Dimond area safer which attracts more businesses, customers, and residents, and ultimately private investment . When business location decisions are made, “lower levels of public safety lead to increased uncertainty in decision making and can be perceived as a signal of a socio -institutional environment unfavorable for investment.” Uncertainty affects the investment environm ent in general, but in particular it increases the fear of physical damage to investment assets (or to people) or their returns…Almost universally, places with lower crime rates are perceived as more desirable.”8

The cleaning and beautification activities specially benefit each assessed parcel within the DBID by providing a clean and aesthetically appealing environment. This is achieved through sidewalk sweeping, power washing, removing litter and graffiti, trash removal, and streetscape furniture.

These activities create the environment needed to achieve the DBID’s other goals. Sidewalks that are dirty and unclean, particularly from vagrant activities, deter pedestrians and commercial activity.

The Clean, Safe and Beautiful activities are expected to provide special benefits to the assessed parcels in a variety of ways. For example:

• Maintaining and cleaning sidewalks in front of each parcel creates a cohesive environment and allows pedestrians to move freely throughout the DBID. Sidewalks that are dirty and unkempt deter pedestrians and commercial activity . “Walkable communities offer many financial benefits, such as a reduction in healthcare costs. Homes with sidewalks tend to sell for more money and in less time than similar homes without sidewalks. Businesses also benefit as residents are more likely to sho p locally when there is increased

8 “Accelerating economic growth and vitality through smarter public safety management” IBM Global Business Services Executive Report, September 2012, pg. 2
Attachment B:

Dimond BID Engineer’s Report Page 12 of 17

connectivity between residential and business/commercial districts. The well -maintained sidewalks, accessibility, and inviting atmosphere of downtown helps to attract tourists.”9 • Removing graffiti from assessed buildings to keep the aesthetic appeal uniform throughout the DBID.
• The beautification activities specially benefit each assessed parcel by providing maintained landscaped corridors and streetscape furniture in public places. These activities create the welcoming environment needed to achieve the DBID’s other goals.

Business Development and Vitality
The Business Development and Vitality activities consist of services directly benefitting the assessed commercial and residential 4+ units parcels. For example, the DBID will promote businesses and higher density residential rental properties within the DBID area , help assessed property owners attract high-paying tenants and residents through advertising and neighborhood branding efforts and highlight the special benefits that the assessed commercial and residential 4+ units parcels are receiving through a website and district marketing and special events. These activities will specially benefit each assess ed commercial and residential 4+ units parcel by encouraging business development and investment and increased commercial activity (e.g., filling vacant spaces and residential rental units , increased lease /rental rates for these spaces).

Decisions on where to shop, eat, conduct business, or live are largely based on a perception of the place. If these business development activities were not performed, it would be a deterrent to pedestrian traffic, business, and commerce for the assessed parcels.

Management and Advocacy
The DBID requires a professional staff to properly manage programs, communicate with stakeholders, advocate with City departments, and provide leadership. Each parcel will specially benefit from the DBID executive staff that will ensure tha t the DBID activities are provided and deployed to assessed parcels and will provide leadership to represent the community with one clear voice.

Special Benefit Conclusion
The fact that each DBID improvement and activity defined above will be provided to each assessed parcel is above and beyond what the city currently provides constitutes a special benefit. In addition, the DBID activities are targeted to improve the safety, cleanliness, and economic vitality of only those parcels that are within the district boundary. Therefore, we conclude that each of the proposed activities provides solely special benefits to the assessed parcels within the district and that each parcel’s assessment is in direct relationship to and no greater than its proportional special benefits received.

General Benefit Defined
As required by the State Constitution Article XIIID Section 4(a), the general benefits of an assessment district must be quantified and separated out so that the cost of the activities that are attributed to general benefit are deducted from the cost asses sed against each specially benefitted parcel. General benefits are benefits from the DBID activities and improvements that are not special in nature, are not particular and distinct and are not over and above the benefits that other parcels receive.

General Benefit Analysis

9 “Benefits of Sidewalks”, Iowa Healthiest State Initiative, November 1, 2017 Attachment B:

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The DBID improvements and activities are designed to provide service only to those parcels that are within the district boundary. As discussed above, these activities are determined to provide solely special benefits to the assessed parcels. If there is any general benefit to property located in the district or to the public at large, it is incidental to providing special benefits to the assessed parcels. However, it is conceivable that there may be some general benefit that is not quantifiable, and it is judicious to allocate a portion of the budget to acknowledge this.

For the purposes of the DBID, we assigned 2%, or $,5600 of the budget to general benefit. This portion of the budget will need to be funded from sources other than the special assessments.

Attachment B:

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SECTION F: COST ESTIMATE

2024 DBID Assessment Budget
The DBID’s operating budget takes into consideration:

1. The improvements and activities needed to provide special benefits to each individual parcel within the DBID boundary (Section B),

2. The parcels that specially benefit from said improvements and activities (Section C), and

3. The costs associated with the special and general benefits conferred (Section E).

REVENUES
Assessment Revenues $274,400 98.00%
Other Revenues (1) $5,600 2.00%
Total Revenues $280,000 100.00%
(1) Other non-assessment funding to cover the cost associated with general benefit.

Budget Notations
The services proposed for year one of the initial term are the same services that are proposed for subsequent years. Assessments will be subject to an annual increase of up to 5% per year to address changes in the cost of providing services. The determination of annual adjustments in assessment rates will be subject to review and approval by the DBID Board of Directors and City Council and will be subject to the requirements of the Ordinance.

The cost of DBID improvements and activities may vary in any given year depending on market conditions and the cost of providing those services. Expenditures for each of the line items may be adjusted up or down 10% between them to continue the same level of service. The Board of Directors shall make such determination. In addition, any annual budget surplus, including those created through cost saving measures, unexpected reductions in expenses or unanticipated increases to income, will be rolled into the fo llowing year’s budget. The carryover funds will be applied to the same budget line item as the line item that was the source of the carryover funds.

The budget will be adjusted accordingly consistent with the Management District Plan to adjust for surpluses that are carried forward to ensure that the DBID is spending these funds in a timely manner and is complying with applicable State laws and City policies. Any change in line -item expenditures and/or budget surplus will be approved by the Board of Directo rs and submitted in the annual report, pursuant to the Oakland BIMD Ordinance.

Bond Issuance
No bonds will be issued to finance improvements.

Attachment B:

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SECTION G: APPORTIONMENT METHOD

The proportionate special benefit derived by each identified parcel shall be determined in relationship to the entirety of the capital cost of an improvement or the cleaning and operation expenses of an improvement or the cost of the property service being provided. Due to the proportionate special benefits received by these individual parcels from the DBID services, these parcels will be assessed a rate which is proportionate to the amount of special benefits received.

Specifically, the assessment rates are calculated as follows:

Total Budget – (Business Development & Vitality + Other Revenues) = $235,200 Assessed to all parcels in the District.

50% of Budget / sum of building + lot SF
($235,200 / 1,820,551) = $0.06046 per building + lot square foot

50% of Budget / linear frontage
($235,200 / 12,657) = $9.29152 per linear foot

Business Development & Vitality – Other Revenues = $39,200 Assessed to only Commercial and Residential 4+ units parcels.

50% of Budget / sum of building + lot SF
($235,200 / 1,453,160) = $0.01349 per building + lot square foot

50% of Budget / linear frontage
($235,200 / 10,074) = $1.94566 per linear foot

The total Commercial and Residential 4+ units’ assessment:

Per building + lot square foot = $0.07808 ($0.06046 + $0.01349) Per linear foot = $11.23718 ($9.29152 + $1.94566)
The first year’s maximum assessment rates are as follows:

Land Use Per Lot + Bldg Per Linear
Commercial $0.07808 $11.23718
Residential 4+ units $0.07808 $11.23718
Government $0.06460 $9.29152
Attachment B:

Dimond BID Engineer’s Report Page 16 of 17

Land Use Per Lot + Bldg Per Linear
Non-Profit $0.06460 $9.29152
Residential 1-3 units $0.06460 $9.29152

Sample Parcel Assessments
The first year’s assessment for a Commercial parcel with 5,000 lot square feet + 5,000 building square feet, and 50 linear feet is calculated as follows:

Lot+Building square footage x the assessment rate (10,000 x $0.07808) = $ 780.80 Linear feet x the assessment rate (50 x $11.23718) = $ 561.86 Initial annual parcel assessment $1,342.66

The first year’s assessment for a Residential 1-3 units parcel with 5,000 lot square feet + 2,500 building square feet, and 50 linear feet is calculated as follows:

Lot+Building square footage x the assessment rate (7,500 x $0.06460) = $ 484.50 Linear feet x the assessment rate (50 x $9.29152) = $ 464.58 Initial annual parcel assessment $ 949.08

Maximum Annual Assessment Adjustments
The cost of providing programs and services may vary depending on the market cost for those programs and services. Expenditures may require adjustment up or down to continue the intended level of programs and services. Assessments maybe subject to annual increases not to exceed the assessment rates in the table below for any given year. Increases will be determined by the Board of Directors and will vary between 0% and 5% in any given year. Any change will be approved by the Board of Directors and submitt ed to the City within its annual planning report, pursuant to Section 36650 of the California Streets and Highways Code.

The projections below illustrate a maximum 5% annual increase for all assessment rates.

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Any annual budget surplus, including those created through cost saving measures, labor vacancies, unexpected reductions in expenses caused by one -time events or unanticipated increases to income, will be rolled into the following year’s budget. The budget will be set accordingly, within the constraints of the Management District Plan, to adjust for surpluses that are carried forward to ensure that the District is spending these funds in a timely manner and is complying with applicable State laws and City po licies. District funds may be used for renewal.

The estimated budget surplus amount will be included in the annual report each year. Funds from an expired District shall be rolled over into the new District if one is established or returned to the property owners if one is not established, in accordance with Streets and Highways Code section 36671.

If an error is discovered on a parcel’s assessed parcel square footages or building square footages, the District may investigate and correct the assessed footages after confirming the correction with the Alameda County Assessor Data. The correction will b e made in accordance with the assessment methodology and may result in an increase or decrease to the parcel’s assessment.

Future Development
As a result of continued development, the District may experience the addition or subtraction of assessable fo otage for parcels included and assessed within the District boundaries. The modification for parcel improvements within the District, which changes upwards or downwards the amount of total footage assessed for these parcels will, pursuant to Government Code 53750, be prorated to the date they receive the temporary and/or permanent certificate of occupancy and will be billed directly by the City for the prorated year. Parcels that experience a loss of building square footage need to provide notice of the change to the District by April 1st of each year. Any delinquent assessments owed for the modification of assessable footage that was billed directly by the City will be added to the property tax roll for the following year as delinquent.

In future years of the DBID term, the assessments for the special benefits bestowed upon the included DBID parcels may change in accordance with the assessment methodology formula listed in the Management District Plan and Engineer’s Report, provided the assessment rate does not change. If the assessment formula changes and increases the assessments, then a ballot as defined in Article 13 Section D of the State Constitution will be required for approval of the formula changes.

Assessment Appeal Procedure
Property owners may appeal assessments that they believe are inaccurate. Appeals must be in writing, stating the grounds for appeal and filed with the Owners Association prior to April 1 of each year. Appeals shall be limited to the current assessment year. Any appeal not filed by April 1 shall not be valid. In any case appeals will only be considered for the current year and will not be considered for prior years.

CITY OF OAKLAND

DIMOND BUSINESS IMPROVEMENT DISTRICT

PROPERTY OWNER BALLOT
This ballot is for the property owners of the parcel(s) identified below by Assessment Parcel Numbers (APN), which parcel(s) is/are located within the proposed Dimond Business Improvement District (hereinafter “DBID”) in the City of Oakland.

Please advise the City of Oakland as soon as possible at (510) 238-6230, if the owner and/or assessment information set forth below is incorrect.

This ballot may be used to express either support for , or opposition to , the proposed DBID assessment. In order to be counted, this ballot must be completed, signed, and dated below by an owner of the identified parcel(s) or by an authorized representative of the owner. The ballot must be received by the City Clerk of Oakland by the date and time stated below. It may be delivered by mail or in person to: Office of the City Clerk, Oakland City Hall, One Frank H. Ogawa Plaza, Oakland, CA, 94612, Attn: DBID. If a majority (as weighted by assessment amount) of ballots received oppose the DBID assessment, the DBID will not be established, and the DBID assessment will not be levied.

Mail Delivery: If by mail, fold and insert the ballot in the enclosed pre-addressed envelope, seal the envelope, add postage, and deposit in the U.S. mail. Please mail early to ensure your ballot is received on or before July 18, 2023, at 4:00pm.

Personal Delivery: If in person, fold and insert the ballot in the enclosed pre-addressed envelope, seal the envelope provided, and deliver to the City Clerk’s office (address shown above) or deliver to the City Clerk at the public hearing on the DBID. The City Clerk’s office, located on the 2nd Floor, Room 201 of One Frank H. Ogawa Plaza, is open Monday, Tuesday, Thursday, and Friday from 8:30am to 5:00pm.

The assessment shall not be imposed if the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, with the ballots weighted according to the proportional financial obligation of the affected property.

IN ORDER TO BE COUNTED, THIS BALLOT MUST BE RECEIVED BY THE CITY CLERK PRIOR TO THE CLOSE OF THE PUBLIC INPUT PORTION OF THE PUBLIC HEARING ON THE DBID, WHICH IS SCHEDULED FOR JULY 18, 2023, AT 4:00PM IN THE CITY COUNCIL CHAMBERS, OAKLAND CITY HALL, 1 FRANK OGAWA PLAZA, OAKLAND, CALIFORNIA 94612, OR VIA TELECONFERENCE AS MAY BE MANDATED BY STATE OR COUNTY EMERGENCY HEALTH ORDERS. To cast this ballot, check the appropriate box below (either yes or no), sign the ballot at the bottom, and return either this entire page or the portion below this line. To request a sample ballot in another language, please call: (510) 238-6230.

BALLOT
Please mark in the box below to cast your vote:
 YES, I am in favor of the formation of the district and the proposed assessments on the parcel(s) identified on this ballot.
 NO, I oppose the formation of the district and the proposed assessment on the parcel(s) identified on this ballot.

Owner APN Assessment
XXXXX XXXX $ XXXX
Total DBID Proposed Initial Annual Assessment Amount (Votes Eligible) _____________________________________________________
Name (printed)
_________________________________________ ______________________________ Signature Date
$
Exhibit B

Oakland City CouncilMay 16, 2023

Oakland City Council
May 16, 2023