September 18, 2010 Ms.

Aliza Gallo CEDA, City of Oakland 250 Frank Ogawa Plaza, 3rd Floor Oakland, CA SUBJECT: Annual Report for the Joint Administration the lake Merritt/Uptown CSD of the Downtown Oakland CSD and

Dear Aliza: Please find attached a report on the work and activities of the Downtown Oakland and lake Merritt/Uptown CSD District Management Corporation for calendar year 2010. Please feel free to call me at 510 452-4529 should you have any questions about this report. Sincerely,

Marco Li Mandri Executive Director Downtown Oakland Association Lake Merritt/Uptown District Association cc: Joint Organization Committee Members

388 19th Street· Oakland. Califomia 94612 DOA Phone 510.238.1122 . LMUDA Phone 510.452.4530 • Fax 510.452.4529 mail g. downtownoakland.org· www.downtownoakland.org

.

.

Downtown

Oakland Community Benefit District and the lake Merritt/Uptown Community Benefit District

388 19th Street, Oakland, CA94612 510-452-4530 or 510-238-1122
Exhibit A (to the resolution approving and confirming the FY 2010 annual report and continuing assessment)

Downtown Oakland CBDand lake Merritt/Uptown CBDAnnual Report to the Oty Council Report on the Plan for 2010

1. Proposed Changesin boundaries of the C8Ds. There are no proposed changes to the boundaries of the CBD. There will be some probably by the end of December 2010. However, the Foxtheatre and a few other larger parcels on the periphery of both Downtown Oakland and Lake Merritt may be included and no formal action will be taken until we know the status of these potential additions to the two districts. 2. Sidewalk Operations Improvements and activities provided during fiscal year 2010: The Sidewalk Operations Beautification and Order (SOBO)Committee is the key Committee of both organizations. It is the clearinghouse for the critical services which intend to bring order to the district and clean the public rights of way. Martin Ward of Old Oaktand and Laurie Berberich of the 1000 Broadway building were selected to Co-Chalr the Downtown Oakland CBD SOBO Committee. Michelle Lane of the Cathedral and Tanicia Jackson of Swig/Kaiser Center were selected to Co-Chair the Lake Merritt/Uptown District SOBOCommittee. They continue to Chair this Committee. The key element of the work of this Committee is summarized as follows: a. Ambassadors/Security: After a nationwide search conducted in early 2009, the Joint SOBO Committee recommended that Block by Block, a company that specializes in business district ambassador programs be selected to run this service. Block by Block receives approximately $65,000 per month from both organizations and is operated under the supervision of Ted Tarver, their on-site supervisor, working out of the CBDoffices. The contract runs from January thru December 2010. The Ambassador program is uniformed specifically for each district and their work has done more to tum around the image and order of the two districts, more than any single program in decades. It is perhaps the greatest successstory of the two districts thus far; b. Outreach with other security firms: One of the reasons why Block by Block was hired was due to their experience in working with many private security firms. There are private security firms throughout the district, but many of them do not talk to each other. Ted Tarver has been making his rounds getting to meet all of the security reps and we hope to have them all locked into an e-mail and/or fax database by the end of the summer. This will facilitate information on relevant problem areas in the two districts.

2

c. Cleaning Services: The Joint SOBO Committee hired a local non-profit, Services Corporation, based in Fruitvale, to operate the sidewalk cleaning services. employees are uniformed regular steam cleaning services in both districts. will expire at the end of the calendar year. Peralta's contract

Peralta Peralta

in the colors of each district and provide daily sidewalk sweeping and was extended in 2010 and

d. Hospitality: The Bank of America Foundation awarded the two districts grant for fund "hospitality ambassadors" to be trained and overseen by Block by Hospitality ambassadors got underway in late August and will be providing visitors with information on the district. The total grant from B of A is $20,000, matched district for a total funding of $40,000 for this year.

a matching Block. The to the area by the each

e. Meserhle Verdict: When the Meserhle verdict was read in early July, Block by Block had been working closely with OPD to ensure that rioting did not affect the district. Unfortunately, and despite the best efforts of Ted Tarver's team, the rioting was not restricted to the City Hall plaza and substantial damage was done to many of the member businesses and property owners of the districts. Ted Tarver is now coordinating with other security companies for private property owners and working with the City Attorney's office, OPD and the District Attorney's office to ensure that there is not a repeat of the rioting when the final sentencing is read in early November. 3. Administration for 2010: Since early 2009, New City America, Inc. has administered both districts and has six employees who manage various duties for both CBD's. They have worked on the following: annual elections of the Board of Directors, setting up the non-profit corporations, setting up committee meetings, work with the City of Oakland on contracts and reporting, liaison to other community groups, monthly financial reports, setting up Board policies, setting up the office, quarterly newsletters, management of a property-owner database, Board meetings, overseeing the subcontractors and marketing and promotion of both districts. This year, Steve Snider, Andrew Jones, Tori Decker and others are working as a sub-contractor as Oakland Venue Management to New City America. The two district management corporations thus continue to have no employees and contract out ALL service providing services to the property owners. District Identity and Streetscape Improvement Special Benefit Services for 2010: As per the Management District Plan and based upon unspent 0151 funds in the previous calendar year, approximately $ 207,585 was allocated for 0151 related activities for both districts in 2010. The following represents the work of the Joint 0151 Committee: Public space development, advertising, special events, branding, advertising and public relations handled by Gallen Neilly. The Chairs are Carmen Santisteban (CBRE-City Center)/Downtown Oakland and Andrea Kirkpatrick (Kaiser Center-Swig)/Lake Merritt-Uptown District. Please see attached budget. 5. Estimated cost for providing services in the coming fiscal year - 2011: The next fiscal year budget (2010) for both districts are as follows: Downtown Oakland CBD: CBO: $ 934,241

4.

Lake Merritt/Uptown

$ 1,111,123.00

3

6.

Method and Basis ofLevvinq

the Assessments:

The method and basis for levying the assessment is based upon a benefit unit analysis. In this process, linear frontage, lot size and building square footage data is used to calculate individual parcel assessments. In addition, two benefit zones are used in the Downtown Oakland CBDto apportion special benefit services based upon need.
7. Surplus or Deficit for Fiscal Year 2009/10:

There was a $282,498 carry forward for lake Merritt's CBDand a $190,745 carry forward for Downtown Oakland's CBDfor the beginning of 2010. The carry forward was based upon cost savings and the rolling out of security and maintenance serviceswhich were delayed by 2 - 3 months in early 2009. It is anticipated that there will be lower carry forward amounts for fiscal year 2011.
8. Contributions from other sources:

The lake Merritt/Uptown District Association and Downtown Oakland CBDswere the recipient of a grant from the Bank of America Foundation, totaling $20,000 for the Hospitality Ambassador program. This grant was awarded in July. Other grants are anticipated for the balance of this year and into 2011. Anticipated new projects In the coming year: The following special benefits will need to be prioritized with existing staff and within the existing budget over the next year or two:
• Business attraction

Strategies, particularly attraction of new office tenants and possibly new hotels should be prioritized in the districts. Staff must come up with a strategy to deal with this since office tenants are the life blood of the successof our major stakeholders;
strategies: Street BART Station: With the support of Councilwoman Kaplan and CEDA Director Walter Cohen, staff is highly motivated to help transform the 17th Street BARTstation into a beautiful entry way into the two districts. Since the 17th Street Station is located at the exact border of both districts, both have to gain a lot from this makeover. The use of lighting, landscaping and public art can make this a great entry way to the Fox and Paramount Theatres as well as the Uptown district. Redesign of Itt'

Youth Radio, which has a national contract with NPF,is located at 17th and Broadway and provides an excellent resource for both districts in the promotion and district identity efforts of the districts. The technical knowledge and facilities for filming and broadcasting in these studios is truly state of the art and the districts should prioritize working with this nationally recognized asset.
Partnering with Youth Radio: Repairing public amenities: Nothing states that a district is on the decline more than faded signage, graffiti and non-functioning amenities in the public rights of way. Currently the "handless" art deco sidewalk clock at 17th and Broadway and the dead horse trough which should work as a fountain at Telegraph and Broadway, are great examples of great public

4

amenities that should be brought back to life. It is amenities such as these that create a real urban experience and the two CBDsshould work with the City to get them both back on line.

Broadway, W. Grand and Street/lakeside Drive have great medians that are currently filled with gravel or bark. The planting and maintaining of these medians in the coming years would do so much to enhance the visual improvements to this area. Flowers and landscaping are very inexpensive ways to improve and re-cast the image of any area. Eventually, a hanging plant program from 8th to along Broadway, as well as zo" and W. Grand could also do much to improve the image of the area.
Landscaping medians throughout the districts:

zo"

zs"

Zoning Update: The Downtown Specific Plan is in the process of review and adoption. Land use entitlements are key to the success of this area, particularly when the development cycle returns. Both CBDs must be active in the review and influence of these entitlement policies; Downtown Public Space Development:

The DISICommittee will be working on areas including Franklin Bend, Franklin Square, Snow Park, Latham Square, the 13th Street corridor and 9th Street for new public space development. This will become a priority in 2011- 2012.

Broadway Shuttle Review: The land Use Committee will be looking at multiple transportation related activities including the new Broadway shuttle and the conceptual plan for a Broadway Streetcar. New developments: As new development begins to occur in both districts, the land Use Committee will begin to review these projects and make recommendations on the how the new developments or rehabilitated buildings will fit within the districts.

5

Downtown Oakland Community Benefit District Annual Report to the City of Oakland 2010-11
Date: September 15, 2010 Downtown Oakland Association Address:

Name of District:

Contact Person Name/Phone/E-maii Marco Li Mandri, 510-238-1122, marco@downtownoakland.org Board Member Names, Position Held (i.e. President. Treasurer, etc.) and Date When Each Member's Term Expires

1.JC Wallace, President. October 2011 2. Chris Curtis, Vice President, October 2011 3. John Bruno. Secretary, October 2011 4. Laurie Berberich, Treasurer, October 2011 See attached for roster and term lengths

Number of Vacant Seat(s) on the Board Board Member Qualifications (l.e. indicate whether a property-owner, resident, business owner, etc. If a business-owner, then indicate the name of the business owned) Length of Board Member Terms Board Member Appointment Process

Zero

Please see attached of Board seats

roster for categories

Staggered terms. two year terms as of October 2010 The Secretary writes a letter to all property owners soliciting that they nominate themselves or others for a property owners seat (at least 2/3), or a business tenant and community at large seat. The nominations
OAKLAND ASSOCIATION

DOWNTOWN

388 19th Street· Oakland, California 94612 Phone 510.238.1122 • Fax 510.452.4529 • maiI1o'downlownoaktand.org· www.downtownoakland.org

Summary of CBD Functions

are due at least 2 weeks prior to the Annual meeting. The annual meeting for this year has been called for October 6th at 1:00 p.m. at 500 12th street, Conference Room 102. See Management District Plan budget attached. 1.
Organization CommiHee/

Name of Sub-commiHees/Chairs

JC Wallace 2.
Sidewalk, Operations, Beautification and Order/Laurie Berberich, Martin

Ward 3.
District Identity and Streetscape Improvements/

Carmen Santisteban

4.

land Use/Charlie Leonard

Board Nominees Elected to the Downtown OakJand Association Board of Directors - August 2010

Person Elected 1. JC Wallace or Tom Tewksbury as an alternate 2. Charlie Leonard or Don Rogers as an alternate 3. Laurie Berberich 4. Ming Lee 5. Chris Curtis 6. Carmen Santisteban 7. Martin Ward 8. Aliza Gallo 9. Beverly Rivas 10. Mike McGuire 11. Denise Trudeau 12. Andrew Brog 13. John Bruno or Melissa Chau as an alternate 14. Julia Sherman or Mike Haddad as an Alternate 15. Ke Norman, BusinessOwner 16. Scott Stafford 18. Anagha Dandekar Clifford 19. Michelle Lane

Property Representing SKSInvestments (President) CIM Group 1000 Broadway (Treasurer) CBREProperties Metrovation (Vice President) City Center/CBRE Old Oakland Assoc. City of Oakland PressBuilding Calif Capital Clorox Cathedral Bldg. Marriott/CIM (Secretary) Property Owner Nailphoria Community at Large BusinessTenant Old Oakland Associates

Proposed Term 2 Year 2 Year 2 Year 2 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 2 Year 1 Year 1 Year 1 Year 1 Year 1 year 1 year 1 year

DOWNTOWN
r.. _ """ __ , ,_".....-

OAKLAND

ASSOCIATION

r,"

388 19th Street· Oakland. California 94612 .r_ ~r_,..

Downtown Oakland Association Committee Structure - 20 J 0
DOA Committee Task Force or Functions and Duties

Organization/Executive Committee

Chair: The President of the Corporation and all of the Officers

Oversees staff and contracts, corporate finances, insurance, grants, development of budget, Board agendas and meetings, correspondences, outreach, bylaws and policies, public relations, newsletter, relations with other CBDs, political reps and public agencies, Board elections, policy formation, fundraising, etc. Consists of all of the officers of the corporation.

JC Wallace, Chair
S080

(Sidewalk Operations, Beautification and Order Committee)
Martin Ward and Laurie Beberlch as Co-Chairs DISI Committee

Oversees service provider or employees involved in the maintenance and improvement of the public rights of way, including sidewalk sweeping, steam cleaning, landscaping, private security, personnel and non-personnel expenses. Relations with OPD, BART,ATC

(District Identity and Streetscape Improvements)

Projects would include those that markets and promotes the district or promotes positive aspects of the Downtown Oakland District. Those issuesmay include: branding of the district, development of a new logo, special events, Website development and maintenance, beautification programs, banner program, streetscape issuesincluding landscaping design, bus shelters, festival poles, holiday decorations, visual linkages, new public spaces projects, improvements to Snow Park. Planning, zoning, parking, parking meter revenues. parking enforcement. shuttle, transportation, mixed use developments. FARs,Community Plan. Review of new construction and its impact. street relationship.

Carmen Santisteban, Chair Land Use Committee Charlie Leonard, Chair

DOWNTOWN

OAKLAND

ASSOCIATION

388 19th Street· Oakland. California 94612 Phone 510.238.1122 • Fax 510.452.4529 • mail@downtownoakland.org· www.downtownoakland.org

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Downtown Oakland District Summary - Option 2
9/15/2010

District Totals
Condo Total Bldg SF Total Lot Sz Total Frontage Total Condo Total

$0.00 $422,226.44 $191,750.79 $320,264.39 $934,241.62

6,233,632 1,394,247 20,187

100% 100% 100%

Bldg SF Total LotSzTotal Frontage Total

New City America, Inc. 2130 Columbia Street San Diego, California 92101 888-356-2726

SIDEWALK

OPERATIONS, BEAUTIFICATION, ORDER: $ 552,000 62% Examples of these special benefit services and costs include, but are not limited to: a Private security over and above those services currently provided by the Oakland Police Department, BARTPolice, Alameda County Transit, and the Alameda County Sheriff's Department; a Regular sidewalk and gutter sweeping a Regular sidewalk steam cleaning a Spot steam cleaning as necessary a Beautification throughout the district a Enhanced trash emptying a Removal of bulky items as necessary a TImely graffiti removal, within 24 hours as necessary a Tree and vegetation maintenance a Parking assistance a Special events a Planning of new outdoor public spaces a Maintenance vehicle and equipment costs (if done in house)

16

TABLE4-A
SPECIAL BENEFIT OBO SERVICES S BROKEN DOWN BYFREQUENCYYBENEFIT ONE B Z Special Category Benefit Number contractors SOBO -62% a. Privale Security b. Sidewall< sweeping, graffili rernovol, dog bog main Ienonce. steam cleaning. Regular trash remaval see attached d. e. f. g. landscaper and maintenance Banner installatian and maintenance Supervisian af SOBO Services Public rights af way cansulting services General liability and vehicle insurance, Vehicle and machinery, mainlenance, materials, equipmenl and supplies, plont material see attached 6 days 6 days Quarterly 6 days As needed 5 days 5 days Quarterly 5 days As needed $ 40,000 (funded by Building Square faotage casts from bath Benefit Zones I 2 6 days per weel< 6 days 6 days per weel< $ 192,000 (Funded by Lal Size) $320,000 (Funded by Linear Frontage based upan Benefil Zane frequencies. Includes services b-gJ of Benefit Zone 1 Frequency Benefit Zone 2 Frequency First Year Costs

litem - %

employeesl

see altached

5 days

c.

h.

Sub-total for S080 Enhanced Residential Beautification/Security: (For Future Residential)

s 552,000
0%

$ 00.00

Exomples of these future special benefit services and costs include, but are not limited to: • Enhanced beautification around blocks with predominantly single family residential unit parcel development. Such enhanced services would include regular security sweeps and evening monitoring. in addition to

17

installation of additional hanging plants. intensive sidewalk landscaping. extra trash cans, dog waste distribution boxes;
DISTRICT IDENTITY: S 90.000 10% Examples of these special benefit services and costs include. but are not limited to: • Web site development and updating; • Special Events • Holiday decorations • Branding of Downtown • Banner programs • Public art displays • Logo development • Public space design and work • Signage • Seasonal ornamental plantings and other special projects around Frank Ogawa Plaza

TABLE4-8
SPECIAL BENEFIT DISTRICT IDENnTY SERVICES BROKEN DOWN

BY COSTS PER BENEFIT ZONE

Special Benefit Category lItem - % District Identity - 10%
a. b. c. d. e. f. g. h. i. j. Website; Special Events Holiday decorations; Branding; Bonner program Public art Logo development Public space design woo Signage Seasonal omamental plantings and other special projects around Fronk Ogawa Plaza Other

Benefit Zone 1 Frequency 85% costs

Benefit Zone 2 Frequency 15% costs

FirstYear Costs
IFunded entirely from Building Square footage assessments levied at two rates for Benefit Zones I and 2)

k.

$ 76,000

$14,000

Sub-fotal OISI

$ 90,000

Administration and Corporate Operations: S 180.000 20% Examples of these special benefit services and costs include. but are not limited to: D Staff and administrative costs D Insurance D Office related expenses. rent
18

o Rnancial reporting o Accounting o Legal work Administrative services and costs are provided to, and apportioned among the building square footage of all of the parcels in the district.
CONTINGENCY

equally

/CITY AND COUNTY FEES/RESERVE: $ 67,108 8% Examples of these special benefit services and costs include, but are not limited to: o Delinquencies o City Fees o County fees o Reserves o Special projects

Contingency/Reserve costs are apportioned footage of all of the parcels in the district
TABLE4-C

equally among the building square

CATEGORIES OF SPECIAL BENEFIT SERVICES - FIRST YEAR PROGRAM OR ACTIVITY FUNDED BY THE DOWNTOWN OAKLAND COMMUNITY BENEFIT DISTRICT ApPROXIMATE ESTIMATED ANNUAL COSTS

% OF FIRST
YEAR ANNUAL BUDGET

Sidewalk Operations, Beautification and Order District Identity and Signage Enhanced Residential Beautification and Evening Security (for future use when condos are built in the district) Administration/Corporate Operations Contingency/City and County Fees/Reserves
TOTAL

62% 10% 0%

$ 552,000.00 $ 90,000.00 $ 00.00 $ 180,000 $ 67,108.00

20% 8% JOO%

S 889, J08.00

Reserve for Slow Payments: A percent of the budget is held in reserve to offset delinquent payment from both public and private properties.

and/or

slow

19

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Lake MerriH/Uptown District Association Annual Report to the City of Oakland September 2010

Date:

September

15, 2010 District Association

Name of District:

Lake Merritt/Uptown

Contact Person Name/Phone/f-mail Marco Li Mandri 510-452-4529,
marco@lakemerritt-uptown.org Board Member Names, Position Held (I.e. President. Treasurer, etc.) and Date When Each Member's Term Expires

Address:

1.Deborah Boyer, President. October 2011 2. Chris Curtis, Vice President, Oct 2011

3. Indrajit Obeysekere, Treasurer. oct. 2011 4. Robert Wilkens, Secretary, oct. 2011 Please see attached current roster of Board members and terms Zero Please see attached roster of Board members

Number of Vacant Seat(s) on the Board Board Member Qualifications (i.e. indicate whether a property-owner, resident, business owner, etc. If a business-owner, then indicate the name of the business owned) Length of Board Member Terms Board Member Appointment Process

Staggered terms, two year terms as of October
2010

The Secretary writes a letter to all property owners soliciting that they nominate themselves or others for a property owners seat (at least 2/3), or a business tenant and community at large seat. The nominations
COMMUNITY BENEFIT DISTRICT

LAKE

MERRITT/UPTOWN

388 19th street· Oakland, Califomia 94612 Phone 510.452.4530· Fax 510.452.4529 • mail@lakemerritt-uptown.org . www.lakemerritt-uptown.org

Summary of BIDFunctions

are due at least 2 weeks prior to the Annual meeting. The annual meeting for this year has been called for October 6th at 1:00 p.m. at 500 12th Street, Conference Room 102. The President calls a nominations meeting a notice is mailed out to all property owners soliciting director nominations. Nominations must be received by the President no later than 14 days before the applicable Annual Nominations meeting. See attached management district plan

Name of Sub-committees

l. Organization Committee - JC

Wallace/Chair 2. District Identity-Andrea Kirkpatrick/Chair
3. Sidewalk. Operations. Beautification

and Order - Michelle Lane. Tanicia Jackson/Co-Chairs 4. Land Use- Indrajit Obeysekere. Chair

Board Nominees Elected to the Lake Merritt/Uptown District Association Board of Directors - July 2010 Terms for Board Members
Person Elected l. Deborah Boyer

2. John Bruno or Melissa Chou 3. Robert Wilkens 4. Indrajit Obeysekere 5. Chris Curtis 6. Andrea Kirkpatrick with Tanicia Jackson as an alternate 7. Mike Brown 8. Aliza Gallo 9. Charlie Leonard or Nola Montgomery 10. CJ Hirschfield 11. Lorie Alemania 12. Laurie Cooperman-Rosen 13. Mike Huaco 14. Mike Ghielmetti with Doug Park as an alternate 15. Steve Douglas 16. Michelle Lane 17. Eileen Kong with Samantha Stires as an alternate 18. Scott Stafford

Pro~erty Representing Swig/Kaiser Center (President) CIM Group YMCA (Secretary) Kaiser Foundation (Treasurer) Metrovation (Vice President) Swig/Kaiser Center Catholic Diocese City of Oakland, and Redevelopment Agency CIM Group Children s Fairyland Leamington Metro Estates Kaiser Foundation Signature Properties
I

Proposed Term

2 Year 2 Year 2 Year 2 Year 2 Year 1 Year 2 Year 1 Year 1 Year 1 Year 2 Year 2 Year 1 Year 2 Year 1 Year 1 Year 1 Year 1 Year

Douolos Parking Catholic Diocese Beacon Properties Community At Large

LAKE

MERRITT/UPTOWN
388 19th .--- - -~- .-~ .---Street·

COMMUNITY

BENEFIT

DISTRICT

-.~ .--

Oakland. Califamia 94612

Lake MerriHjUptown Association CommiHee Structure - 2010
LMUDA Committee or Task Force
OrganizaHon Committee

Functions and Duties
Oversees staff and contracts, corporate finances, insurance, grants, development of budget. Board agendas and meetings. correspondences, outreach, bylaws and policies, public relations, newsletter. relations with other CBDs, political reps and public agencies, Board elections, policy formation, fundraising, etc. Consists of all of the officers of the corporation. Oversees service provider or employees involved in the maintenance and improvement of the public rights of way, including sidewalk sweeping, steam cleaning, landscaping, private security, personnel and non-personnel expenses. Relations with OPD. BART,ATC

Chair: The President of the Corporation and all of the Officers
Chair: Deborah 80yer

(Sidewalk Operations, Beautification and Order Committee)

S080

Co-Chairs: Tanicia Jackson and Michelle Lane DISI Committee

(District Identity and Streetscape Improvements)

Projects would include those that markets and promotes the district or promotes positive aspects of the Lake Merritt/Uptown District. Those issues may include: branding of the district, development of a new logo. special events, Website development and maintenance, beautification programs. banner program. streetscape issuesincluding landscaping design, bus shelters. festival poles. holiday decorations, visual linkages. new public spaces projects, improvements to Snow Park. Planning. zoning, parking. parking meter revenues. shuttle. parking enforcement. transportation. mixed use developments. FARs.Community Plan, Review of new construction and its impact, street relationship. Resident's liaison. ou1reach to community organizations. Issues including residential special benefit needs including evening security, parking for guests and visitors. beautification programs, programs responsive to pet owner needs;

Chair: Andrea Kirkpatrick

Land Use Committee Chair: Indrafd Obeysekere Community Advisory Committee Chair: Chris Curtis

LAKE

MERRITT/UPTOWN

COMMUNITY

BENEFIT

DISTRICT

388 19th Street· Oakland. California 94612

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District Improvement

and Activity Plan

All of the improvements and activities detailed below, are provided only to properties defined as being within the boundaries of the District and provide special benefit to the property owners of those properties within the District. No improvements or activities are provided to properties outside the District boundaries. All benefits derived from the assessments outlined in this Management District Plan fund services directly benefiting the property owners in this specialized zone. Inasmuch as all services will be provided to the properties defined as being within the District boundaries and no serviceswill be provided outside the District boundaries, any potential general benefits are intangible and not quantifiable. All benefits derived from the assessmentsoutlined in the Management District Plan are for services directly benefiting the property, business owners and residentswithin this area and support increased security, cleanliness, commerce, businessattraction and retention, increased property rental income, improved Districtidentity, and specialized beautification and enhanced security programs for the residential land useswithin the District. All services, projects, security, maintenance, beautification and professional/administration services are provided solely to properties within the District. No services will be provided to non-assessed parcels outside of the Districtboundaries. The total improvement and activity plan budget for 2009, which is funded entirely by property assessments,s projected at $ 1,091,517.00. i The Lake Merritt/Uptown Community Benefit District Steering Committee has prioritized the following categories of special benefit services for the new District. The categories of special benefit services provide enough clarity to property owners to understand the intent of the budget category, however give the District Management Corporation the flexibility it needs to allocate the services based upon the changing needs of the district from year to year within each budgeted category. 79% Examplesof these special benefit servicesand costs include, but are not limited to: o Private security over and above those services currently provided by the Oakland Police Department, BART Police, Alameda County TransitAuthority Police and the Alameda County Sheriff's Department; o Regular sidewalk and gutter sweeping, o Regular sidewalk steam cleaning o spot steam cleaning as necessary
SIDEWALK OPERATIONS, BEAUTIFICATION, ORDER AND DISTRICT IDENTITY: 14

S 860,000

o o o o o o o o o o o o o o

Beautification throughout the district Enhanced trash emptying Removal of bulky items as necessary Timely graffiti removal, within 24 hours as necessary Tree and vegetation maintenance Parking assistance Special events Strategies to improve District Identity Holiday decorations Web site development and maintenance Communications Planning of new outdoor public spaces Banner program Maintenance vehicle and equipment costs (if done in house)

TABLE4-A
SPECIAL BENEFIT SOBOOI SERVICES BROKEN DOWN

BY

ESTIMATED COSTS:

Sidewalk Operations, Beautification, Order and District Identify (SOBODI) Sidewalk Sweeping

Anticipated

FirstYear Task frequency

Steam Cleani~g TrashEmptying

Security

Beautification

Banner installation and maintenance Holiday decorations Reporting hazards to City Removal of bulky items Graffiti removal Tree and shrub planting and maintenance Miscellaneous

As determined by Management Corporation, but at least five times per week. Enhanced sweeping for residential areas seven days per week District wide, four times per year As needed, assumesa seriesof new trash receptacles and the current level of City baseline service of Monday through Saturday pick ups As determined by Management Corporation, but at least five days per week during morning and evening employee ingressand egress to the BART Station As the budget allows, the main commercial pedestrian corridors will be enhanced with trees, hanging plants and potted plants Seasonally Seasonally As needed Within 24 hours - if desired above City standard of pickup within 72 hours As soon as noticed or reported Weekly or as needed ASneeded
15

17% Examplesof these special benefit services and costs include, but are not limited to: o Staff and administrative costs o Insurance o Office related expenses o Financial reporting o Accounting o Legal work
ADMINISTRATION AND CORPORATE OPERATIONS:

$ 185,000

4% Examplesof these special benefit services and costs include, but are not limited to: o Delinquencies o City Fees o County fees o Reserves
CONTINGENCY /CIlY AND COUNTY FEES/RESERVE:

$ 46,517

Reserve for Slow Payments:

A percent of the budget is held in reserve to offset delinquent and/or slow payment from both public and private properties.
City and County Fees:

Assessments are budgeted in order to fund the expenses charged by the City of Oakland and Alameda County for collection and distribution of the CBD assessments.
Reserves:

Reservesare budgeted for those funds that remain from the 5% set aside, that are over and above those that have not been collected and are over and above the city and county fees. These reserves shall be carried forward from year to year, or may be reallocated to the designated budgetary categories found within the Management District Plan.

16

Repayment of Assessments:

Formation

and

Advanced

Services

Funds from

First Year

Property owners who advanced funds for the formation of the Lake Merritt/Uptown CBD, as well as the funds for any advanced special benefit services prior to the receipt of the first assessmentinstallment shall be entitled to be fully repaid for any verifiable contributions to the CBD effort. Those reimbursements may be paid by the District Management Corporation out of the firstyear or second year receipts. The amount of reimbursable funds should not exceed 25%of the total first year budget for formation costs and advanced special benefit funded prior to December 3151, 2008.
Table 4-B Summation of Categories of Special Benefit Services for the Lake Merritt/Uptown Community Benefit District

PROGRAM OR ACTIVITY FUNDED BY THE LAKE MERRmjUPTOWN COMMUNITY BENEFITDISTRICT

ApPROXIMATE% OF FIRSTYEAR ANNUAL BUDGET

ESTIMATED ANNUAL COSTS (FIRST YEAR FUNDING SOURCE)

Sidewalk Operations, Beautification Order and District Identity Administration/Corporate Operations Contingency/City and County Fees/Reserves
TOTAL

79%

$ 860,000.00
(Building square footage and linear frontage assessments) $ 185,000.00 (Lot or parcel assessments) $ 46,517.00 (Lot or parcel assessments) $ 1,091,5 17.00

17% 4% 100%

Ten Year Operating

Budget:

A projected ten-year operating budget for the proposed Lake Merritt/Uptown Community Benefit District is provided below. The projections are based upon the following assumptions: • Assessments will be subject to changes in the Alameda County Consumer Price Index (CPI), with annual increases not to exceed 5% per year. Increases will be determined by the District Management Corporation Board of Directors and in no case shall annual increases exceed 5% per year, contingent upon approval by the Oakland City Council.

Assessments specific programs may be reallocated from year-to-year among for District activities within a 10%range within each budget line item and may not exceed 10%of the total budget for all programs and activities. Changes based
17

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Lake Merritt District Summary
District Totals
Residential Total Bldg SF Total LotSzTotal Frontage Total

241,819 7,763,135 3,095,581 41,868

100% 100% 100% 100%

Condo Total Bldg SF Total Lot Sz Total Frontage Total

$48,363.80 $494,045.91 $224,584.40 $344,129.84 $1,111,123.95

New City America, Inc. 2130 Columbia Street San Diego, California 92101 888-356-2726