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i O6/09/2014 Bacic�round The Downtown Redwood City CBID is a is a property-based benefit assessment district being established for a fifteen (15) year term pursuant to the City of Redwood City's Community Benefit Improvement District (CBID) Procedural Ordinance-Redwood City Municipal Code Chapter 31 (the"Ordinance")which is based in part on Section 36600 et seq. of the California Streets and Highways Code,also known as the Property and Business Improvement District(PBID)Law of 1994(the"Act"). Due to the benefit assessment nature of assessments levied within a CBID district program costs are to be distributed amongst all identified benefiting properties based on the proportionate amount of special program benefit each property is expected to derive from the assessments levied. Within the Ordinance and Act, frequent references are made to the concept of relative"benefit"received from CBID programs and activities versus amount of assessment paid. Only those properties expected to derive special benefits from CBID funded programs and activities may be assessed and only in an amount proportionate to the relative special benefits expected to be received. To fund activities and services in the CBID's service areas,an annual benefit assessment will be levied against parcels of real property that specially benefit from the programs,activities and services of the CBID. The method used to determine special benefits derived by each identified property within a CBID begins with the selection of a suitable and tangible basic benefit unit. For property related services, such as those proposed in the Downtown Redwood City CBID,the benefit unit may be measured in linear feet of street frontage or parcel size in square feet or building size in square feet or number of building floors or any combination of these factors.Factor quantities for each parcel are then measured or otherwise ascertained.From these figures,the amount of benefit units to be assigned to each property can be calculated. Special circumstances such as unique geography,land uses,development constraints etc. are carefully reviewed relative to specific programs and improvements to be funded by the CBID in order to determine any levels of different benefit which may apply on a parcel-by-parcel or categorical basis. Based on the factors described above such as geography and nature of programs and activities proposed, an assessment formula is developed which is derived from a singular or composite basic benefit unit factor or factors. Within the assessment formula, different factors may be assigned different "weights" or percentage of values based on their relationship to programs/services to be funded. Next, all program and activity costs, including incidental costs, District administration and ancillary program costs, are estimated. It is noted, as stipulated in Proposition 218, and now required of all property based assessment Districts, indirect or general benefits may not be incorporated into the assessment formula and levied on the District properties;only direct or "special" benefits and costs may be considered. Indirect or general benefit costs, if any, must be identified, calculated and factored out of the assessment cost basis to produce a"neY' cost figure. In addition, Proposition 218 no longer automatically exempts government owned property from being assessed and if special benefit is determined to be conferred upon such properties, they must be assessed in proportion to special benefits conferred in a manner similar to RESO.#15347 MUFF#506