FRANK T. MARTINEZ c. TV OF Los ANGELES OFFICE OF CITY CLERK CALIFORNIA CITY CLERK ADMINISTRATIVE SERVICES KAREN E. KALFAYAN EXECUTIVE OFFICER ROOM 224, 200 N. SPRING STREET LOS ANGELES, CALIFORNIA 90012 (213) 978-1099 FAX (213) 978-1107 TDDfTY (213) 978-1 132

HOLLY L. WOLCOTT DIVISION HEAD ANTONIO R. VILLARAIGOSA MAYOR

May 5, 2006

Honorable Members of the City Council Room 395, City Hall 200 North Spring Street Los Angeles, California 90012

REGARDING: PROPOSED SOUTH LOS ANGELES INDUSTRIAL TRACT (GOODYEAR) BUSINESS IMPROVEMENT DISTRICT Honorable Members:

This Office has received materials relative to the formation of a Landscaping, Security, Programming and Maintenance Property Business Improvement District (LSPM PBID), to be known as the "South Los Angeles Industrial Tract (Goodyear) Business Improvement District" (formerly known as the Goodyear Industrial Business Improvement District) (CF 99-0172), hereinafter called "District." The District would be formed pursuant to the provisions of the LSPM PBID Ordinance (Division 6, Chapter 9, Los Angeles Administrative Code).

This report shall serve as the "Preliminary Report of the City Clerk" described in Section 6.606 of the Los Angeles Administrative Code. Attached to this report are: 1) the Management District Plan, which details the improvements and activities to be provided and serves as the framing document for the proposed District; 2) a detailed Engineer's Report prepared by a registered professional engineer certified by the state of California, which supports the assessment contained in the Management District Plan; and 3) a draft Ordinance of Intention, approved as to form and legality by the City Attorney's Office.

BACKGROUND

The District is being established in accordance with the provisions of City Ordinance No. 173167, which was adopted by the City Council on March 31, 2000, and became effective on May 15, 2000 (CF 98-0528) as Division 6, Chapter 9 of the Los Angeles Administrative Code. The City's LSPM PBID legislation allows for the creation of business improvement districts in special economic incentive zones, in which operations are supported primarily by revenue collected from property owners in the proposed District. The proposed District is located within the Central Avenue Targeted Neighborhood Initiative Area, the Mid-Alameda State Empowerment Zone, and the Los ()~ Angeles Federal Empowerment Zone; therefore, qualifying it for establishment 7' ~ AN EQUAL EMPLOYMENT OPPORTUNITY - AFFIRMATIVE ACTION EMPLOYER ~ Honorable Members of the City Council Page 2 consideration under the City's LSPM PBID formation Ordinance. The LSPM PBID Ordinance allows for the life of the proposed District to be up to ten years; however, the period for this proposed District is two years.

The proposed District programs include, but are not limited to the following: public safety program with armed patrols, closed-circuit surveillance camera monitoring and recording system and maintenance and upgrade for the system, public space maintenance and administration.

PRELIMINARY PETITIONS

In order to proceed with the establishment process under the City's LSPM PBID Ordinance, the proponent group needed to secure written support for the project in the form of petitions signed by property owners who wil pay more than 30 percent of the assessments proposed to be levied. The consulting firm, Urban Place Consulting Group, Inc., for the proposed District has presented to the Office of the City Clerk a set of petitions that support the formation of the proposed District. This Office has verified the validity of the petitions using various City and County of Los Angeles sources. In addition, this Office has verified the accuracy of the assessment calculations.

The petitions received indicate affirmative financial support of the project in an amount equivalent to $242,618.40. This represents 30.75 percent of the proposed District's projected first year revenue of $788,971. Because the more than 30 percent threshold of preliminary support has been achieved, the formal BID establishment process, including a public hearing before the City Council, may be initiated.

PROPOSED DISTRICT BOUNDARIES

The proposed South Los Angeles Industrial Tract BID consists of a 22-block area in south Los Angeles. A general description of the exterior boundaries is as follows: the western-most boundary is Avalon Boulevard between Florence Avenue on the south and Slauson Avenue on the north; the northern-most boundary is Slauson Avenue beginning at Avalon Boulevard on the west, proceeding east to Central Avenue; the eastern-most boundary is Central Avenue beginning at Slauson Avenue on the north proceeding south to Gage Avenue, then east to the east property line of all property on the east side of McKinley Avenue, south to Florence Avenue; the southern-most boundary is along Florence Avenue between McKinley Avenue on the east and Avalon Boulevard on the west. All property within the approximate boundaries described above are included in the proposed South Los Angeles Industrial Tract BID.

There are 281 parcels owned by 153 stakeholders in the proposed District. The map included in the District's Management District Plan gives sufficient detail to locate each parcel of property within the proposed District.

DISTRICT ESTABLISHMENT AND PROPOSITION 218 COMPLIANCE

Article XIIID of the California Constitution (Proposition 218) requires, among other things, that: 1) the City Council identify all parcels that will have a special benefit Honorable Members of the City Council Page 3 conferred upon them and upon which an assessment will be imposed; 2) the City Council not impose an assessment on a parcel which exceeds the reasonable cost of the proportional benefit conferred on that parcel; 3) the City Council separate the general benefits from the special benefits conferred on a parcel; and 4) all assessment be supported by a detailed engineer's report prepared by a registered professional engineer certified by the state of California.

The Engineer's Report supports the assessments contained in the Management District Plan and, in addition, includes facts, which would support City Council findings relative to items 1 through 3 above.

Proposition 218 also includes certain notice, protest and hearing requirements. Those requirements are codified in the Proposition 218 Omnibus Implementation Act ("Act") (California Government Code Section 53750 et seq.) This report recommends that the City Council direct the City Clerk to comply with the Act. Establishment of the proposed District is contingent upon the City's receipt of a weighted majority of financially supportive ballots as submitted by the affected property owners. The City Clerk wil tabulate the ballot returns and wil report the results to the City CounciL.

PROPOSED IMPROVEMENTS AND PROGRAMS

The District is expected to generate $788,971 annually over a two-year period. The revenue wil be utilized to fund the proposed District's improvements and activities that include, but are not limited to the following: public safety program with armed patrols, closed-circuit surveilance camera monitoring and recording system and maintenance and upgrade for the system, public space maintenance and administration.

ASSESSMENT FORMULA AND DISBURSEMENTS

The District's proposed assessment formula is based upon an allocation of program costs and a calculation of assessable property square footage as described in the attached Management District Plan. The Management District Plan allows the proposed District's management entity to make annual assessment increases tied to the Consumer Price Index (CPI) for the Los Angeles region and may not exceed three percent (3%) or the actual CPI in any given year.

The City Clerk will arrange to have the proposed District's assessments included as a line item on the property tax bils prepared and distributed by the County of Los Angeles. If necessary, this Office will directly bill property owners or entities that do not appear on the tax rolL. The County will subsequently transfer assessment revenue to the City. Assessment revenue wil be held in trust by the City and will be disbursed through installments to the District to support authorized District improvements and activities.

DISTRICT ADVISORY BOARD The BID wil be governed by an advisory board consisting of property owners and at least one business owner operating in the district who is not also a property owner. The Honorable Members of the City Council Page 4 advisory board provides general oversight of BID operations, prepares annual reports and makes recommendations to the City Council on district budget and other issues. The Advisory Board is required to be appointed by the City Council prior to BID establishment. The City Council may designate existing advisory boards or commissions to serve as the advisory board for the District or may create a new advisory board for that purpose. A list of the proposed District's current advisory board members is attached.

CONTRACTING WITH A NON-PROFIT CORPORATION

Upon establishment of the District, the LSPM PBID Ordinance states that the City Clerk shall administer the District and may contract with a non-profit corporation to manage the District on a day-to-day basis.

ASSESSABLE CITY PROPERTY

There are no City-owned properties located within the boundaries of the proposed District.

FISCAL IMPACT

There is no fiscal impact to the City's General Fund.

A portion of City Clerk administrative expenses will be charged to the proposed District and will be recovered from assessments collected. The amount of recoverable costs for the first year of the proposed District's operations is estimated to be $15,779.42 or two percent (2%) of the proposed District's estimated first-year assessment revenue. If the District's assessments are not placed on the County's annual property tax roils in the first year, an additional one percent (1 %) for processing of direct billing by the City Clerk's office will apply.

RECOMMENDATIONS

1. FIND that the petitions submitted on behalf of the proponents of the proposed South Los Angeles Industrial Tract (Goodyear) Business Improvement District are signed by property owners who will pay more than thirty (30) percent of the assessments proposed to be levied.

2. ADOPT the Preliminary Report of the City Clerk.

3. ADOPT the attached Management District Plan.

4. . ADOPT the attached Engineer's Report.

5. FIND that all parcels that wil have a special benefit conferred upon them and upon which an assessment would be imposed are those as identified in the Management District Plan. Honorable Members of th ;ity Council Page 5

6. FIND that in accordance with Article XL liD of the California Constitution and based on the facts and conclusions contained in the attached Engineer's Report, the assessment levied on each parcel within the proposed District is proportionate to the special benefit derived from the improvements and activities that are to be provided.

7. FIND that in accordance with Article XIIID of the California Constitution and based on the facts and conclusions contained in the attached Engineer's Report, there are no general benefits to be separated from the special benefits conferred on each parcel within the proposed District.

8. FIND that in accordance with Article XIIID of the California Constitution and based on the facts and conclusions contained in the attached Engineer's Report, no assessment imposed on any parcel exceeds the reasonable cost of the proportional special benefit conferred on that parceL.

9. AUTHORIZE the City Clerk, upon establishment of the District, to prepare, execute and administer a contract between the City of Los Angeles and a non- profit corporation for the administration of the District's programs.

10. ADOPT the attached Ordinance of Intention to establish the South Los Angeles Industrial Tract (Goodyear) Business Improvement District.

11. DIRECT the City Clerk to comply with the notice, protest, and hearing procedures prescribed in the Proposition 218 Omnibus Implementation Act (California Government Code, Section 53750 et seq.).

12. REQUEST the City Attorney, with the assistance of the City Clerk, to prepare an enabling Ordinance establishing the South Los Angeles Industrial Tract (Goodyear) Business Improvement District for City Council consideration at the conclusion of the required public hearing.

Sincerely, ø;i- ý, Jo~ FRANK T. MARTINEZ City Clerk

FTM:KEK:HLW:MCP:RMH:rks

Attachments: Management District Plan Engineer's Report Draft Ordinance of Intention District Advisory Board RECBV

MAR 1 6 2006 Management District Plan ADMIN. SVCS

For A Landscaping, Security, Programming and Maintenance Property Business Improvement District (LSPM PBID)

In The South Los Angeles Industrial Tract (Goodyear) Los Angeles

February, 2006

Developed By Urban Place Consulting Group, Inc. Table of Contents

For the South Los Angeles Industrial Tract (Goodyear) Business Improvement District (BID) Los Angeles, California

CONTENTS

Section Number Page Number

1. Management District Plan Summary 3

2. Business Improvement District Boundaries and 5 District Boundary Map 6

3. District Improvement and Activity Plan 7

4. Assessment Methodology 10

5. District Rules and Regulations 12

6. Implementation Timetable 12

7. Parcel Numbers of Properties Included 12

2 Section 1

Management Plan Summary The name of the new proposed BID is the South Los Anqeles Industrial Tract (Goodvear) !3usiness Improvement District (!l The PBID is being established pursuant to City of Los Angeles Landscaping, Security, Programming, and Maintenance District (LSPM) District establishment ordinance, "Division 6 of the Los Angeles Administrative Code, Chapter 9, Sections 6.600 to 6.620". The proposed South Los Angeles Industrial Tract (Goodyear) Business Improvement District is located within a "special economic incentive zone" as defined in Division 6 of the Los Angeles Administrative Code, Chapter 9, Section 6.601. A "special economic incentive zone" means those areas of the City of Los Angeles which have been previously designated as, or are subsequently designated as: Los Angeles Neighborhood Initiative areas (LANI); Targeted Neighborhood Initiative areas (TNI); Transportation Oriented Districts (TOD); or are commercial or industrial census tracts with a poverty level of 20% or higher. The proposed district is located entirely within the Central Avenue Targeted Neighborhood Initiative Area, the Mid Alameda State Enterprise Zone and the Los Angeles Federal Empowerment Zone.

Developed by the South Los Angeles Industrial Tract (Goodyear) Steering Committee, the South Los Angeles Industrial Tract (Goodyear) BID Management District Plan is proposed to improve and convey special benefits to properties located within the South Los Angeles Industrial Tract. The business improvement district will provide new and continued improvements and activities, including security, and special programs.

Boundary: Approximately 22 blocks, an area bounded roughly by Slauson Avenue on the North, Florence on the South, Central Avenue on the East and Avalon Avenue on the West (See map page 5), for a total of 8,776,349 square feet.

Budget: The total District budget for the 2007 year of operation is approximately $788,971 and is composed of the following elements: Improvements, Activities, Services:

DISTRICT SPACE MANAGEMENT $700,971 Enhanced Security Programs $688,171 A South Los Angeles Industrial Tract (Goodyear) BID Patrol to address crime prevention, security and safety and inappropriate conduct in the District.

. Day Bicycle/Vehicle Patrol . Night Vehicle Patrol . 24 Hour Video Surveillance Maintenance Program $12,800 . Maintain/Clean Tree Wells, Guard Shack Landscaping

3 . Remove Graffiti/Stickers from Signs, Light Poles, Cameras ADMINISTRATIONCITY BID FEES $ $17,000 60,000 RESERVE DELINQUENT/SLOW PAY $ 11,000 Source or Method of Financing: A levy of special assessments upon real property specifically benefiting from the improvements and activities.

Annual assessments are based upon an allocation of program costs and a calculation of assessable square footage. One property assessment variable, property square footage, will be used in the calculation. First year assessments per square foot will not exceed:

Per Property Square Foot $0.09 Cap: Optional yearly assessment increases, if approved by Board vote, will be subject to changes in the Los Angeles Consumer Price Index (CPt), for all urban consumers, and in no case shall annual increases exceed 3% per year, nor shall they exceed the actual CPI increase in any given year. Increases will be determined by the BID owners association and will vary between 0 and 3% in any given year.

District Formation: District formation requires submission of petitions from property owners representing more than 30% of total assessments to be paid and the return of mail ballots evidencing a majority in favor of the assessment. Ballots are weighed by the proportional amount of assessment to be paid. Duration: The BID will have a 2-year life beginning January 1, 2007 and ending December 31,2008. Governance: The South Los Angeles Industrial Tract (Goodyear) BID owners' association, as defined by Ordinance No. 173167 amending Los Angeles Administrative Code Chapter 9, Sections 6.600 to 6.620, wil review the District Budget and policies annually within the limitations of the Management District Plan as defined in section 6.616 of Chapter 9 of the Administrative Code. Annual and quarterly reports will be filed with the City Clerk's office. An owners' association will contract with the City of Los Angeles to implement the improvements and activities and oversee the day-to-day implementation of the Management District Plan and will submit recommendations to the BID Owners association on annual budgets, assessment rates and work plans.

4 Section 2 South Los Angeles Industrial Tract (Goodyear) Business Improvement District Boundaries Boundary

Summary - The South Los Angeles Industrial Tract (Goodyear) Business Improvement District (BID) is made up of all properties located within the following boundaries: (Also, see map on page 6.) The northern boundary is the south side of Slauson Avenue between Avalon Boulevard and Central Avenue on the east. The southern boundary is the north side of Florence Avenue between Avalon Boulevard on the east & McKinley Avenue on the west and Gage Avenue between McKinley on the west and Central Avenue on the east. The western boundary is Avalon Boulevard between Slauson Avenue on the north and Florence Avenue on the south. The eastern boundary is Central Avenue from Slauson Avenue to Gage Avenue from Gage Avenue to Florence Avenue is the east property line of property facing on the east side of McKinley Avenue. The Post Office parcel is not included in the PBID and services will not be provided to the parcel, on the south side of Gage Avenue to the north side of Florence Avenue between the east side of McKinley Avenue and the west side of Central Avenue, because of restricted access and Federal security measures.

The PBID area is the industrial area primarily between Slauson Avenue, Florence Avenue, Avalon Boulevard and Central Avenue. The industrial area is clearly and distinctively defined by industrial building types and gated entrances to through streets. The South Los Angeles Industrial Tract (Goodyear) BID is bounded by residential properties on the east, west, and south and separated by railroad tracks on the northern boundary. Property zoned exclusively residential wil not be assessed.

Northern Boundary

The south side of Slauson Avenue between Avalon Boulevard on the west and Central Avenue on the east was chosen because parcels inside the boundary are of industrial use and within the Goodyear Industrial Tract. No Services wil be provided on the north side of Slauson Avenue which is divided by railroad tracks.

Western Boundary

The east side of Avalon Boulevard between the south side of Slauson Avenue and the north side Florence Avenue was chosen because parcels inside the boundary are of industrial use and within the Goodyear Industrial Tract. No Services will be provided on the west side of Slauson Avenue due to the residential nature of the area.

Southern Boundary

The north side of Florence Avenue between the east side of Avalon Boulevard and the east side of McKiniey Avenue and north side of Gage Avenue between the east side of McKinley Avenue and the west side of Central Avenue was chosen because the parcels inside the boundary are of industrial use and within the Goodyear Industrial Tract. No

5 services will be provided on the south side of Florence Avenue because of the residential nature of the area. Services will not be provided to the Post Office parcel on the south side of Gage Avenue because of restricted access and Federal security measures,

Eastern Boundary The west side of Central Avenue between the south side of Slauson Avenue and the north side of Gage Avenue was chosen because the parcels inside the boundary are of industrial use and within the Goodyear Industrial Tract. No services will be provided on the east side of Central Avenue because of the residential nature of the area. The east side of McKinley Avenue between the north side of Gage and the north side of Florence was chosen because of the parcels within the boundary are of industrial use and with the Goodyear Industrial Tract. No services will be provided to the Post Office parcel on between McKinley Avenue and Central Avenue because of restricted access and Federal security measures.

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7 Section 3

District Improvement and Activity Plan

The summary of the 2007 operating budget for the South Los Angeles Industrial Tract (Goodyear) Business Improvement District including 2 year projections, is provided on page 8. The total improvement and activity plan budget for 2007, which is to be funded totally by property assessments, is projected, to be $788,971.41 made up of the following components: DISTRICT SPACE MANAGEMENT Total = $700,971.41 -South Los Angeles Industrial BID Public Safety Program. The South Los Angeles Industrial Tract (Goodyear) BID security program mission is to support the police department, property owners and tenants in overall crime prevention efforts and reduction in illegal dumping and street disorder, while offering a customer service orientation to tenants. Security Patrol will provide highly visible neighborhood security and are intended to supplement, not supplant, individual building security and police. The South Los Angeles Industrial Tract (Goodyear) BID security program will work closely with and communicate with the Los Angeles Police Department (LAPD). They patrol assigned routes, focusing their activities on property within the District boundaries. These patrol activities won't extend beyond the District boundaries.

-Training Provided by the Community Redevelopment Agency The security contractor and members of the Goodyear BID Owners association wil be trained by softare and hardware specialists, hired by the Community Redevelopment Agency (CRA) on how to properly operate the surveilance and security gate system as well as on incident reporting and report generation. Training manuals and copies of all equipment warranties will be provided to the Goodyear BID Board of Directors prior to the start of the BID's first year. These services wil be provided only within the District boundaries.

-Armed Patrols ($608,171 of the District Space Management Budget) The daytime guard patrol deters illegal dumping, ilegal street vending, and street code violations. This presence is a deterrent to property theft and burglary from . motor vehicles. The patrol also deters aggressive panhandling and handles quality of life problems including: drinking in public, urinating in public, indecent exposure, trespassing, prostitution and scavenging. Daytime guard patrols also assist with traffic control in the event of accidents, fires or unusual occurrences. These services wil be provided only within the District boundaries.

The patrol wil have assigned routes during specified daylight hours weekdays, covering all property equally on all routes in the district. Patrolling will be accomplished through a combination of bicycle patrol and vehkular patrol. These services will be provided only within the District boundaries.

8 The night/weekend vehicle patrol will protect District Spaces and property within the South Los Angeles Industrial Tract (Goodyear) area District boundaries. The patrol will be on duty during all night hours weekdays and 24 hours a day on weekends. The night/weekend patrol handles quality of life problems including: drinking in public, urinating in public, indecent exposure, trespassing, prostitution and scavenging. They work to prevent graffiti and apprehend taggers when required. The patrol reduces illegal dumping, burglary, vandalism and other crimes against property. The patrol wil respond to alarms and maintain communication with LAPD area patrols and to calls for assistance from tenants and property owners and handle special projects. These services will be provided only within the District boundaries.

Armed security personnel will monitor the District's system of video cameras 24 hours per day, 7 days a week. Recordings will be made and stored of all images from all cameras to use in prosecuting criminal behavior. The video monitor wil act as a dispatcher by observing incidents and dispatching either the bike patrol or vehicle patrol to investigate. The monitor will also act as the link to the Los Angeles Police Department and call LAPD to assist when necessary. These services will be provided only within the District boundaries. Security Equipment Maintenance Budget ($80,000 of the District Space Management Budgeij A video camera security system will connect a fiber optic transmission system to a state of the art monitoring and recording system that has been installed by the CRA within the District. Additionally, controlled entry gate devices have been installed by the CRA at all of the 12 street entries into the District. A custom-built guard booth has also been constructed by the CRA in the District. A budget for ongoing repairs and maintenance is established, including repair of broken gates and arms, technical malfunctions, replacement and/or repair to cameras, installation of softare upgrades, repair or replacement of signs, cleaning the camera housing domes, the parking gate cabinets and the dispatch booth. These services will be provided only within the District boundaries.

Maintenance ($12,800 of the District Space Management Budget) A minimal budget is provided for maintenance services throughout the District two days a week. Maintenance staff will maintain and clean existing tree wells and guard shack landscaping. Staff will remove any graffiti or stickers from signs, poles, and cameras. These services wil be provided only within the District boundaries. ADMINISTRATION Total = $60,000 This budget reflects the use of a contractor to administer and manage the South Los Angeles Industrial Tract (Goodyear) Business Improvement District improvements and program activities in accordance with the Management District Plan. South Los Angeles Industrial Tract (Goodyear) BID services will be delivered 24 hours a day, seven days a week and require management staff to be on call 24 hours a day, seven days a week. The following tasks wil be required of a management staff to manage the South Los Angeles Industrial Tract (Goodyear) BID.

9 . Oversee and manage security operations and contracts . Accounting . City Reports . Property Owner Relations . Advocate on behalf of the property owners and business owners to insure that City and County services and polices support the District. The District budget provides for contracting with a BID management company to complete the above tasks. In addition to administrative labor the budget contains costs for operating a small office and insurance. CITY FEES $ 17,000 Fees are budgeted in order to fund the expenses charged by the City and County for collection and distribution of BID revenue. RESERVE FOR SLOW PAYMENT $ 11,000 A percent of the budget is held in reserve to offset delinquent and/or slow payment from both public and private properties.

TWO YEAR OPERATING BUDGET A projected two year operating budget for the South Los Angeles Industrial Tract (Goodyear) Business Improvement District is provided. The projections are based upon the following assumptions.

Assessments will be subject to changes in the Los Angeles Consumer Price Index (CPI), with annual increases not to exceed 3% per year. Increases will be determined by the Management District Owners association and in no case shall annual increases exceed 3% per year, nor shall they exceed the actual CPI increase in any given year. The projections illustrate a BID budget with a projected 3% CPI increase each year. .

Revenues for specific programs may be reallocated from year-to-year among District activities within a (10%) range. Larger changes based upon District needs and budgets must be approved by the Los Angeles City CounciL.

2007 2008 District Space $ 700,971.41 $ 722,000.55 Management Administration $ 60,000 $ 61,800 City Fees $ 17,000 $ 17,510 Reserve $ 11,000 $ 11,330 Total $ 788,971.41 $812,640.55

10 Continuation of Budget & Assessments As per City Ordinance 173167: "Assessments for the maintenance of improvements constructed by the District, if any, shall continue to be levied on each parcel of land within the District for a period of time equal to the useful life of the improvement, as determined by the City Clerk, regardless of whether the District is disestablished or the term of the original levy has expired." This budqet does not fund any construction of improvements by the. District. The video camera security system was constructed by the CRA and not with District funds and is not a long term responsibility of the District. The BID will assume ownership of the cameras, etc. upon establishment. If the BID does not renew, then ownership of the video camera security system will revert back to the CRA for ownership. This will be in a direct agreement between the CRA and the BID, upon the BID's establishment.

11 Section 4

Assessment Methodology The recommended methodology for the South Los Angeles Industrial Tract (Goodyear) BID is to use property/land square footage as the only assessment variable. This reflects the fact that services delivered to property in the District will have the greatest benefit to properties in relation to their land area. See Appendix A, Engineers Report, for complete analysis of assessment methodology.

Calculation of Assessments 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 maintenance and operation expenses of an improvement or for the cost of the property service being provided. Per California Constitutional Amendment Article XIII D, Section 2(i), '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. No assessment shall be imposed on any parcel, which exceeds the reasonable cost of the proportional special benefits conferred upon that parceL. Only special benefits are assessable and these benefits must be separated from any general benefits. A general benefit is defined as a benefit to properties in the surrounding community or a benefit to the public in general resulting from improvement, activity or service to be provided by the assessment levied. All General Benefits (if any) to the surrounding community and general public are intangible and unquantifiable. All benefits derived from the assessments outlined in the Management District Plan (MDP) go only for services directly benefiting the property owners in this specialized zone in increased commerce and all the other goals and objectives of the BID's purpose.

Properties are assessed for all land area as defined on the County Assessor's most current parcel maps.

The preceding methodology is applied to the parcel database of parcels within the District. The process for compiling the property database includes the following steps:

. A report was submitted to the City Clerks office using data obtained from the County of Los Angeles Assessor's office. The City Clerk verified the report.

. A list of properties to be included within the BID is provided in section 7.

Based upon the methodology as set forth above, first year assessments for property square footage is established as follows:

Property Square Footage per square foot $0.09 Calculation Formula: Cost Per Square Foot = Total BID Budget 1 Total BID Property Square Foot = $788,971.41/8,766,349 Sq Ft = $0.09 In future years, assessments may change, up or down, if footage information changes and/or BID budgets change pursuant to the CPI adjustment. Assessments will in any event not exceed the maximum limits defined below.

12 Maximum Annual Assessments Assessments will be subject to changes in the Los Angeles Consumer Price Index (CPI), for all urban consumers, annual increases not to exceed 3% per year. Increases will be determined by the BID owners association and will vary between 0 and 3% in any given year. Increases may not exceed the actual CPI increase in any given year. The following projections illustrate a 3% annual increase.

Maximum Assessment Rates 2007 2008 Per SQ Foot $0.09 $0.0927

Budget Adjustments Any annual budget surplus or deficit wil be rolled into the following year's BID budget. Assessments wil be set accordingly, within the constraints of the CPI, to adjust for surpluses or deficits that are carried forward. Revenues from delinquent accounts may be expended in the year they are received. If the District is not renewed any remaining funds wil be returned to property owners.

Time and Manner for Collecting Assessments As provided by City of Los Angeles LSPM PBID establishment law, "Division 6 of the Los Angeles Administrative Code, Chapter 9, Sections 6.615., the South Los Angeles Industrial Tract (Goodyear) BID assessment will appear as a separate line item on annual property tax bills prepared by the County of Los Angeles. Disestablishment If necessary, the disestablishment procedure is outlined in City of Los Angeles LSPM PBID establishment law, Division 6 of the Los Angeles Administrative Code, Chapter 9, Section 6.619.

Government Assessments The South Los Angeles Industrial Tract (Goodyear) BID Management Plan assumes that the City of Los Angeles and other government entities will pay assessments for public property within the boundaries of the District. Article XIII D, See 4 of the California Constitution was added in November of 1996 to provide for these payments.

13 Section 5

Business Improvement District Rules and Regulations

Pursuant to the LSPM PBID law, Division 6 of the Los Angeles Administrative Code, Chapter 9, Section 6.619, a business improvement district (BID) may establish rules and regulations that uniquely apply to the District. The South Los Angeles Industrial Tract (Goodyear) BID has adopted the following rules:

Treatment of Residential Housing Properties zoned solely for residential or agricultural use within the boundaries of the District, if any, will not be assessed. The District does not contain any parcels that are zoned solely for residential or agricultural use. All parcels within the District, both residential use and commercial use, receive special benefits and will be assessed in the same manner. Bonds

The District will not issue bonds.

Section 6

Implementation Timetable

The South Los Angeles Industrial Tract (Goodyear) Business Improvement District (BID) is expected to be established and begin implementation of the Management District Plan on January 1, 2007. Pursuant to the City of Los Angeles LSPM PBID establishment law, Division 6 of the Los Angeles Administrative Code, Chapter 9, Sections 6.600 to 6.620, the South Los Angeles Industrial Tract (Goodyear) BID wil initially have a two-year life beginning January 1, 2007 through December 31, 2008.

Section 7

The assessment methodology used is based on Lot Square Footage of a parceL. This is the exact same methodology used in the previous attempt to establish the District, but with decreased assessment amounts. The decrease in assessment amounts is the direct result of District property owner feedback to lower the total budget amount. PARCEL NUMBER ASSESSMENT ROLL

Parcel Assessment 6007-005-014 5950 Avalon Associates 97,138 $8,742.42 6007 -011-011 6309 Central Avenue Llc 80,150 $7,213,50 6007 -006-014 Francisco & Silvia Navarro 43,124 $3,881,16 6007 -006-015 Francisco & Silvia Navarro 12,196 $1,097,64 6007-006-016 Francisco & Silvia Navarro 13,939 $1,254,51

14 Parcel Assessment 6007 -011-009 900 East 62nd Street Llc 71,438 $6,429.42 6007 -007 -003 906 East 60Th Street Building 28,749 $2,587.41 6007 -007 -004 906 East 60Th Street Building 26,571 $2,391,39 6007-011-010 AMF Properties Inc 77,101 $6,939.09 6007-019-007 Andhill Company 115,869 $10,428.21 6007-019-011 Andhill Company 21,344 $1,920.96 6007-002-028 Angelica Realty Co 132,858 $11,957.22 6007 -003-018 Angelica Realty Co 20,037 $1,803.33 6007 -016-029 Apex Pattern Co 47,530 $4,277.70 6007 -010-008 Armstrong, Gary P 19,602 $1,764.18 6007 -010-007 Armstrong, Gary P And 39,639 $3,567.51 6007 -018-002 Balsamo, John And Frances A Trs 7,405 $666.45 6007 -018-003 Balsamo, John And Frances A Trs 25,700 $2,313,00 6007-018-004 Balsamo, John And Frances A Trs 15,246 $1,372.14 6007-018-026 Balsamo, John And Frances A Trs 18,295 $1,646,55 6007-018-027 Bank Of America 67,082 $6,037.38 . 6007-019-008 Becerra, Jesus 13,503 $1,215,27 6007-005-005 Benjamins, Abraham Tr 54,450 $4,900,50 6007-010-009 Benjamins, Abraham Tr 18,295 $1,646,55 6007-010-010 Benjamins, Abraham Tr 14,810 $1,332,90 6007 -011-002 Benjamins, Abraham Tr 67,082 $6,037,38 6007 -015-027 Benjamins, Abraham Tr 30,928 $2,783,52 6007-003-011 Book Covers Inc 113,256 $10,193,04 6007 -004-016 Bookman, Lawrence Tr Et AI 22,651 $2,038.59 6007-017-001 Boster, Judy LEt AI 18,295 $1,646.55 6007-017-002 Boster, Judy L Et AI 11,761 $1,058.49 6007-018-029 Boster, Judy L Et AI 9,583 $862.47 6007-009-011 C Pac Seafoods 8,712 $784.08 6007-015-025 Carboyan,Koko And Lilian 10,018 $901.62 6007-015-026 Carboyan,Koko And Lilian 7,840 $705.60 6007-007-015 Cardenas,Delinda 51,836 $4,665,24 6007-007 -016 Cardenas,Delinda 16,988 $1,528,92 6007-015-023 Chavez,Rigoberto And 36,926 $3,323.34 6007 -004-013 Cherouge Corp 22,215 $1,999.35 6007 -009-025 Chohan,Shaukat A And Mahmooda K 99,316 $8,938.44 6007 -006-021 Johnson, Marc TR _12,632 $1,136.88 6007-006-024 Johnson, Marc TR 51,836 $4,665,24 6007-009-006 City Paper Box Co 13,939 $1,254,51 6007-005-016 Contreras, Sara Tr 89,298 $8,036.82 6007-015-017 Croxen,Patricia A Tr 17,345 $1,561,05 6007-005-015 D Delat Partnership 19,166 $1,724,94 6007 -008-014 827 E 62nd St LLC 30,492 $2,744.28 6007-008-015 827 E 62nd St LLC 19,602 $1,764.18 6007-008-016 827 E 62nd St LLC 22,651 $2,038,59 6007-002-017 Delgado S Frames 16,552 $1,489,68 6007-002-022 Delgado,Antonio And 22,651 $2,038,59 6007-002-018 Delgado,Antonio And Angelina And 80,586 $7,252,74 6007 -002-019 Delgado,Antonio And Angelina And 48,351 $4,351.59 6007-002-023 Delgado, Felipe J And 50,094 $4,508.46 6007 -005-001 Delgado,Felipe J And Silvia And 49,222 $4,429,98 15 Parcel Assessment 6007-005-019 Delgado,Rafael And 55,146 $4,963,14 6007-018-021 Deruiter Henry H Co Tr 152,460 $13,721.40 6007-017 -021 Deruiter,Henry H Co Tr Et AI 67,518 $6,076,62 6007-018-014 Dilella,Miguel A Sr 73,616 $6,625.44 6007-007-017 Dovetail Furniture And Designs 33,541 $3,018,69 6007-007-018 Dovetail Furniture And Designs 9,583 $862.47 6007-019-001 6809 Stanford Ave LLC 67,518 $6,076,62 6007-019-002 6809 Standford Ave LLC 28,314 $2,548.26 6007-008-017 Dulgarian,Dean J And Laura D Trs 19,602 $1,764.18 6007-011-001 Dulgarian,Dean J And Laura D Trs 39,639 $3,567,51 6007-011-003 Dulgarian,Duke And 39,639 $3,567.51 6007 -019-005 Elghanian,Liza T 30,492 $2,744.28 6007-019-006 Elghanian,Liza T 30,492 $2,744,28 6007 -018-009 Encarnacion,Benjamin And 17,424 $1,568,16 6007-016-009 General Interest Dev. 19,602 $1,764.18 6007-016-025 General Interest Dev. 10,670 $960,30 6007-016-028 General Interest Dev. 19,602 $1,764.18 6007-016-030 General Interest Dev, 57,934 $5,214.06 6007 -008-010 Flores,Jose M And Blanca E And 27,007 $2,430.63 6007-008-011 Flores,Jose M And Blanca E And 29,185 $2,626.65 6007 -006-009 Gheytanchi Invs Group Llc 33,541 $3,018.69 6007 -006-005 J&R Co 13,503 $1,215.27 6007 -006-006 Friedman, Morris 13,503 $1,215,27 6007-007-021 Friend,Ben And Eleanor Trs 9,147 $823.23 6007 -015-009 Friend,Ben And Eleanor Trs 6,098 $548.82 6007-015-010 Friend,Ben And Eleanor Trs 6,969 $627.21 6007-005-008 Friend,Eleanor Tr 13,503 $1,215.27 6007-005-009 Friend,Eleanor Tr 14,810 $1,332.90 6007-008-009 Friend,Eleanor Tr 30,056 $2,705.04 6007-010-014 Garbellini,Gianfranco Co-Tr 18,295 $1,646.55 6007-015-018 Gee,Albert Et AI 17,583 $1,582.47 6007-016-014 General Electric Co 97,574 $8,781.66 6007-019-003 Gomez,Jorge 12,196 $1,097.64 6007-019-004 Gomez,Jorge 12,196 $1,097.64 6007-017-014 Gonzalez,Adam 9,583 $862.47 6007 -004-001 Goodman,Melvyn And Lynn Trs 54,450 $4,900.50 6007-006-008 Goodman,Melvyn And Lynn Trs 22,215 $1,999.35 6007-018-013 Guillermina Dondiego Inc 34,412 $3,097.08 6007-015-024 Hammond,Jean S Tr 36,926 $3,323.34 6007-016-015 Hanel,Robert D And Adele G Trs 22,651 $2,038.59 6007-016-016 Hanel,Robert D And Adele G Trs 11,325 $1,019.25 6007-016-017 Hanel,Robert D And Adele G Trs 22,651 $2,038.59 6007 -016-018 Hanel,Robert D And Adele G Trs 44,866 $4,037.94 6007-010-013 Hardie,Gilbert S Et AI Trs 14,374 $1,293.66 6007 -009-014 Hoyer,Ernest And Aviva Trs 8,712 $784.08 6007 -009-015 Hoyer, Ernest And Aviva Trs 21,780 $1,960,20 6007 -006-012 Hoyer, Ernest And Av.iva Trs Et AI 17,424 $1,568,16 6007 -006-013 Hoyer, Ernest And Aviva Trs Et AI 20,908 $1,881,72 6007 -006-011 Hoyer,Ernest C And Aviva S Trs 22,215 $1,999.35 6007 -007 -001 Hoyer,Ernest C And Aviva S Trs 22,215 $1,999.35 16 Parcel Assessment 6007 -004-01 2 Hoyer, Ernest C Co Tr 22,215 $1,999.35 6007 -009-007 Hoyer, Ernest C Co Tr 8,712 $784,08 6007 -009-008 Hoyer, Ernest C Co Tr 34,412 $3,097.08 6007 -004-009 J And B Enterprises 76,665 $6,899.85 6007 -015-003 Jedlick,Michael 4,356 $392.04 6007-017-020 Jedlick,Michael And Gail 10,890 $980.10 6007 -015-002 Jedlick,Michael L And Gail T 14,810 $1,332.90 6007-009-012 Daniel & Daniel Hoyer 17,424 $1,568.16 6007-009-013 Daniel & Daniel Hoyer 8,712 $784.08 6007-015-020 Jonas Enterprises 5,662 $509.58 6007-015-021 Jonas Enterprises Inc And 17,701 $1,593.09 6007-015-022 Jonas Enterprises Inc And 36,926 $3,323.34 6007-008-008 Jovel, Roberto A And Martha L 26,571 $2,391.39 6007-003-014 Karabel And Sons Investments 32,234 $2,901.06 6007-002-002 Karapetian,Vahe 7,405 $666.45 6007-002-003 Karapetian, Vahe 36,590 $3,293.10 6007-002-004 Karapetian, Vahe 49,658 $4,469.22 6007-002-005 Karapetian,Vahe 36,590 $3,293.10 6007-002-006 Karapetian, Vahe 36,590 $3,293.10 6007-002-008 Karapetian, Vahe 18,295 $1,646.55 6007-002-009 Karapetian, Vahe 18,295 $1,646.55 6007-002-024 Karapetian, Vahe 35,283 $3,175.47 6007-002-026 Karapetian, Vahe 11,761 $1,058.49 6007-002-027 Karapetian, Vahe 17,859 $1,607.31 6007-002-029 Karapetian, Vahe 10,890 $980.10 6007-003-001 Karapetian, Vahe 18,305 $1,647.45 6007-003-015 Karapetian, Vahe 32,234 $2,901.06 6007-003-016 Karapetian,Vahe 32,234 $2,901.06 6007-003-017 Karapetian, Vahe 20,037 $1,803.33 6007-005-006 Karapetian, Vahe 27,442 $2,469.78 6007-005-007 Karapetian, Vahe 13,503 $1,215.27 6007-019-012 Karubian,Ralph K And Rhoda C 34,412 $3,097.08 6007-019-013 Karubian,Ralph K And Rhoda C 30,927 $2,783.43 6007-019-014 Karubian,Ralph K And Rhoda C 20,908 $1,881.72 6007-018-008 Kiyan Design Corp 17,424 $1,568.16 6007-010-016 Kohen,Jerry And Orit 10,890 $980.10 6007-010-017 Kohen,Jerry And Orit 17,859 $1,607.31 6007-010-018 Kohen,Jerry And Orit 53,143 $4,782.87 6007-003-019 Kramer Metals 33,976 $3,057.84 6007-003-020 Kramer Metals 62,726 $5,645,34 6007-003-021 Kramer Metals 63,597 $5,723.73 6007-003-007 Kramer,Stanley J And Susan M 31,798 $2,861.82 6007-003-008 Kramer,Stanley J And Susan M 15,246 $1,372.14 6007-008-007 Kramer,Stanley J Tr 54,450 $4,900.50 6007-007-010 Krieger,Gary And Kim 14,374 $1,293.66 6007-007-011 Krieger,Gary And Kim 30,492 $2,744.28 6007-007 -012 Krieger,Gary And Kim 14,688 $1,321.92 6007-006-017 Kum Soon Han 8,712 $784.08 6007-006-018 Kum Soon Han 8,712 $784.08 6007 -006-019 Kum Soon Han 17,424 $1,568.16 17 Parcel Assessment 6007-006-020 Kum Soon Han 21,780 $1,960.20 6007-001-900 D Delat Partnership 15,681 $1,411.29 6007 -001-007 Lazar,Barry J And Rochelle Trs 54,885 $4,939,65 6007 -001-008 Lazar,Barry J And Rochelle Trs 54,885 $4,939.65 6007 -005-012 Lee,Tom SAnd Miyoung M 22,215 $1,999.35 6007 -018-007 Lee, William E And Kathryn S 69,260 $6,233.40 6007-007-008 Vm Realty LLC 15,681 $1,411,29 6007-007 -009 Vm Realty LLC 69,696 $6,272.64 6007-003-010 Community Redevelopment Agency 120,225 $10,820.25 6007 -017 -003 Maldonado,Jose C And Maria J And 20,473 $1,842.57 6007-017-004 Maldonado,Jose C And Maria J And 34,412 $3,097.08 6007 -018-028 Martinez,Miguel A And Maria C 4,791 $431.19 6007-018-012 Martinez,Paul And June Trs 103,237 $9,291 .33 6007-008-012 Matts,Theresa Co Tr 15,681 $1,411.29 6007-008-013 Mattis,Theresa Co Tr 17,859 $1,607.31 6007-010-012 Mazin,Joseph And Donna Trs Et AI 14,810 $1,332.90 6007-010-020 Mazin,Joseph And Donna Trs Et AI 14,810 $1,332.90 6007-006-002 Mbb Patners 40,946 $3,685.14 6007-006-025 Mbb Patners 77,536 $6,978.24 6007-015-011 Greer S & S Greer TR 14,397 $1,295.73 6007-015-005 Teresa Gonzalez 13,939 $1,254.51 6007-015-007 Greer S & S Greer TR 11,761 $1,058.49 6007 -006-007 J&R Co 18,730 $1,685.70 6007-015-004 Fleet Properties Development 6,098 $548.82 6007-009-019 Milton Koll Family Lie 30,056 $2,705.04 6007-009-020 Milon Koll Family Lie 27,878 $2,509.02 6007-009-021 Milton Koll Family Lie 7,840 $705.60 6007-009-022 Milton Koll Family Lie 13,503 $1,215.27 6007 -006-010 Mitchel,R Inc 33,541 $3,018.69 6007-004-014 Nadel,Harry 22,215 $1,999.35 6007-016-004 National Sandblasting Co Inc 39,639 $3,567.51 6007-017-018 Neshanian,Barbara Tr 17,424 $1,568.16 6007-017-019 Neshanian,Barbara Tr 10,018 $901.62 6007 -003-012 Newark Group Industries Inc 17,424 $1,568.16 6007 -003-013 Newark Group Industries Inc 58,370 $5,253.30 6007-003-006 Nichols,Ruth M Exec 36,590 $3,293.10 6007-003-005 Efrain & Rosa Gonzalez 36,590 $3,293.10 6007-001-005 Nusbaum,Henry And Rose Trs 7,405 $666.45 6007 -001-006 Nusbaum,Henry And Rose Trs 14,775 $1,329.75 6007 -018-010 Pak,Nanci S 33,976 $3,057.84 6007-018-011 Pak,Nanci S 25,264 $2,273.76 6007-001-009 Devon Slauson LLC 36,590 $3,293.10 6007-002-001 Panfil,Wayne And Randee Tr 36,590 $3,293.10 6007-018-006 Pasillas,Jose And Elvia 55,321 $4,978.89 6007 -002-020 Dulgarian, Duke 22,651 $2,038.59 6007-002-021 Dulgarian, Duke 3,484 $313.56 6007-007-019 Pietruszka, Gary And Fern 8,712 $784.08 6007-007 -020 Pietruszka, Gary And Fern 34,412 $3,097.08 2121 Pico Dev LLC(Plastic And Rubber 6007-016-003 Engineering) 19,602 $1,764,18

18 Parcel Assessment 6007-005-010 Plastopan California Realty Corp 51,836 $4,665.24 6007 -019-020 Premium Holdings Llc 33,105 $2,979.45 6007-015-012 Prime Processors 6,969 $627.21 6007-001-001 Radco Investments 16,900 $1,521.00 6007-010-001 G-5 International 98,881 $8,899.29 6007 -010-002 Rangoola,Ajit SAnd Harsanjam K 17,859 $1,607.31 6007-010-003 Rangoola,Ajit SAnd Harsanjam K 21,780 $1,960.20 6007 -017 -015 Reininger,Ben 40,946 $3,685.14 6007-017-016 Reininger,Ben 9,583 $862.47 6007-017-013 Rosemead Realty Associates 9,583 $862.47 6007-009-001 Ross,Geoffrey S Co-Tr 6,098 $548.82 6007-009-002 Ross,Geoffrey S Co-Tr 19,602 $1,764.18 6007-005-004 Sandoval,Raul And Luisa H 16,552 $1,489.68 6007 -005-018 Sandoval,Raul And Luisa H 53,781 $4,840.29 6007-017-017 Remedios A Quiroz 33,976 $3,057.84 6007 -004-010 Bender, Martin 103,237 $9,291.33 6007 -007 -005 VM Realty LLC 27,878 $2,509.02 6007-007-006 VM Realty LLC 17,859 1,607.31 6007 -007 -007 VM Realty LLC 26,571 $2,391.39 6007-004-015 Schachter,Bernard Tr 22,651 $2,038.59 6007-008-001 Schilit,Menachem Co Tr Et AI 30,056 $2,705.04 6007-008-002 Schilit,Menachem Co Tr Et AI 17,424 $1,568.16 6007-008-003 Schilit,Menachem Co Tr Et AI 23,522 $2,116.98 6007-008-004 Schilit,Menachem Co Tr Et AI 30,492 $2,744.28 6007-008-005 Schilit,Menachem Co Tr Et AI 6,969 $627.21 6007 -008-006 Schilit,Menachem Co Tr Et AI 35,283 $3,175.47 6007-011-004 Seligman, Manuel Tr 30,492 $2,744.28 6007-016-001 2121 Pico Dev LLC 13,503 $1,215.27 6007-016-002 2121 Pico Dev LLC 10,018 $901 .62 6007-019-019 Sherman, Van 95,832 $8,624.88 6007-009-009 Shugar,Arnold 17,424 $1,568.16 6007-009-010 Shugar,Arnold 8,712 $784.08 6007-005-011 Silver And Friend 44,431 $3,998.79 6007-004-002 Smith, Michael G Et AI Trs 27,442 $2,469.78 6007 -004-003 Smith, Michael G Et AI Trs 27,442 $2,469.78 6007 -019-015 Sha Ents Inc 29,185 - $2,626.65 6007-019-016 Sha Ents Inc 39,639 $3,567.51 6007-003-004 South Avalon Boulevard Corp 35,719 $3,214.71 6007 -009-005 Sraberg,Bradley G Tr 17,424 $1,568.16 6007 -009-003 Sraberg,Gerald And Ilene 15,681 $1,411.29 6007 -0.09-004 Sraberg,Gerald And Ilene 27,442 $2,469.78 6007-009-018 Standard Nickel Chromium 15,681 $1,411.29 6007-009-026 Standard Nickel Chromium 15,681 $1,411.29 6007-015-008 Sung,Jason S 6,098 $548.82 6007-011-005 Title Ins And Tr Co 45,738 $4,116.42 6007-017-005 Tri Gents Investments Inc 50,965 $4,586.85 6007 -017 -006 Tri Gents Investments Inc 24,393 $2,195.37 6007 -017 -007 Tri Gents Investments Inc 46,609 $4,194.81 6007-017-008 Tri Gents Investments Inc 30,492 $2,744.28 6007 -017 -009 Tri Gents Investments Inc 22,651 $2,038.59 19 "

Parcel Assessment 6007-010-015 Turner,Paul 28,749 $2,587.41 6007 -019-018 Turner,Paul 68,824 $6,194,16 6007-010-019 Turner,Paul And Shirley 14,374 $1,293.66 6007-019-017 Turner,Paul And Shirley P 34,412 $3,097,08 6007-010-011 Umana,Jose And Blanca N 18,295 $1,646.55 6007 -003-022 United Alloys Inc 72,309 $6,507,81 6007-007 -002 United Polyner Materials Inc 16,552 $1,489.68 6007 -016-023 Vodhanel,Frank J And Evelyn L 49,664 $4,469.76 6007 -015-006 Walman,Mitchell Co Tr 33,541 $3,018.69 6007-004-005 Wax, Marshall And Kathy 13,503 $1,215.27 6007-004-004 Wax, Marshall And Kathy Trs 54,450 $4,900.50 6007-004-006 Wax,Marshall And Kathy Trs 13,503 $1,215.27 6007-004-007 Wax,Marshall And Kathy Trs 27,442 $2,469,78 6007-004-008 Wax,Marshall And Kathy Trs 102,366 $9,212.94 6007-010-004 62 Avalon LLC 33,976 $3,057.84 6007-010-005 62 Avalon LLC 15,246 $1,372.14 6007 -010-006 62 Avalon LLC 10,018 $901.62 6007 -005-013 Western Colloid S C Inc 26,571 $2,391.39 6007-006-026 Western Colloid S C Inc 13,068 $1,176.12 6007-006-027 Western Colloid S C Inc 8,712 $784.08 6007 -016-019 Wilheim,Endre And Olga 16,988 $1,528.92 6007-016-026 Wilheim,Olga Tr 27,878 $2,509.02 6007-018-015 Christopher E Park 24,393 $2,195.37 6007-016-012 Calko Steel Inc. 26,775 $2,409.75 6007 -016-013 Calko Steel Inc. 23,175 $2,085.75 6007 -009-023 Chohan, Shaukat 39,639 $3,567.51 6007 -009-024 Chohan Shaukat 19 602 $1,764,18

$788,971.41

20 Appendix A RECEIVED

MAR 1 6 2006 ADMIN. SVCS

South Los Angeles Industrial Tract (Goodyear) Property-Based Business Improvement District

ENGINEER'S REPORT

February 2006 TABLE OF CONTENTS

CER TIFI CATES ...... 1

ENGINEER'S STATEMENT ...... 2

ENGINEER'S REPORT

EXHIBIT A: Description of Improvements and Activities ...... 3

EXHIBIT B: Estimate of Cost ...... 6

EXHIBIT C: Method of Apportionment ...... 7

EXHIBIT D: Assessment Roll ...... 9 South Los Angeles Industrial T1 (Goodyear) PBID February 2006 Engineer's Report Page 1 of 15 CERTIFICATES

The undersigned respectfully submits the enclosed report as directed by the City of Los Angeles Landscaping, Security, Programming and Maintenance District (LSPM) PBID establishment law, Division 6 of the Los Angeles Administrative Code, Chapter 9, Section 6.606, and pursuant to the provisions of Article XIIID of the California Constitution (Proposition 218).

Date:

TERRANCE E. LOWELL & ASSOCIATES, INC. Engineer of Work

By South Los Angeles Industrial Tl. (Goodyear) PBID February 2006 Engineer's Report Page 2 of 15 ENGINEER'S STATEMENT

This report is prepared in relation to the South Los Angeles Industrial Tract (Goodyear) Property-Based Business Improvement District pursuant to the City of Los Angeles LSPM District establishment ordinance, Division 6 of the Los Angeles Administrative Code, Chapter 9, Sections 6.600 to 6.620, and pursuant to the provisions of Article xnID of the California Constitution (Proposition 218).

The South Los Angeles Industrial Tract (Goodyear) Property-Based Business Improvement District ("PBID") is designed to improve and benefit properties in this industrial area of South Los Angeles. Every assessed property within the PBID receives benefit from the enhanced district space management program. Only those properties within the PBID shall receive the special benefit of these proposed improvements and activities.

The duration of the proposed PBID is two (2) years and an estimated budget for the PBID improvements and activities is set forth in Exhibit B. Assessments wil be subject to changes in the Los Angeles Consumer Price Index (CPI), for all urban consumers, anual increases not to exceed 3% per year. Increases wil be detennined by the PBID advisory board and will var between 0 and 3% in any given year. Increases may not exceed the actual CPI increase in any given year. Funding for the PBID improvements and activities shall be derived from a property based assessment of each benefited parcel in the PBID. A detailed description of the methodology for detennining the benefit assessment for each parcel is set forth in Exhibit C.

This report includes the following attached Exhibits:

EXHIBIT A: A detailed description of the improvements and activities to be provided.

EXHIBIT B: The estimate of the cost of the improvements and activities.

EXHIBIT C: A statement of the method by which the undersigned detennined the amount proposed to be assessed against each parcel, based on benefits to be derived by each parcel, respectively, from the improvements and activities.

EXHIBIT D: An assessment roll, showing the amount proposed to be specially assessed against each parcel of real property within this assessment district.

Respectfully submitted,

Terrance E. Lowell, P .E. South Los Angeles Industrial T : (Goodyear) PBID February 2006 Engineer's Report Page 3 of 15 EXHIBIT A: DESCRIPTION OF IMPROVEMENTS AND ACTIVITIES

In an effort to improve both the reality and perception of safety in the South Los Angeles Industrial Tract (Goodyear) PBID a Management District Plan was prepared by Urban Place Consulting Group, Inc. and proposes a District space management Program as described below. District space management

South Los An2:eles Industrial Tract (Goodyear) PBID Public Safety Pro2:ram The South Los Angeles Industrial Tract (Goodyear) PBID security program mission is to support the police departent, property owners and tenants in overall crime prevention efforts and reduction in ilegal dumping and street disorder, while offering a customer service orientation to tenants. The security patrol provides highly visible neighborhood security and are intended to supplement, not supplant, individual building security and police. The South Los Angeles Industrial Tract (Goodyear) PBID security program wil work closely with and communicate with the Los Angeles Police Department. These services wil be provided only within the District boundares.

TraInIn2: Provided by the Community Redevelopment A2:ency The security contractor and members of the Goodyear PBID Advisory Board wil be trained by softare and hardware specialists, hired by the Community Redevelopment Agency on how to properly operate the sureilance and security gate system as well as on incident reporting and report generation. Training manuals and copies of all equipment waranties wil be provided to the Goodyear PBID Board of Directors prior to the start of the PBID's first year. These services wil be provided only within the Distrct boundares. Armed Patrols The daytime guard patrol deters ilegal dumping, ilegal street vending, and street code violations. This presence is a deterrent to property theft and burglary from motor vehicles. The patrol also deters aggressive panhandling and handles quality of life problems including: drinking in public, urinating in public, indecent exposure, trespassing and prostitution. Daytime guard patrols also assist with traffic control in the event of accidents, fires or unusual occurrences. These services wil be provided only within the District boundaries.

The patrol wil have assigned routes during specified daylight hours weekdays, covering all property equally on all routes in the district. Patrolling wil be accomplished through a combination of bicycle patrol and vehicular patrol. These services wil be provided only within the Distrct boundaries.

The night/weekend vehicle patrol wil protect property within the South Los Angeles Industrial Tract (Goodyear) PBID's area District Boundaries. The patrol wil be on duty during all night hours weekdays and 24 hours a day on weekends. The night/weekend patrol handles quality of life problems including: drinking in public, urinating in public, indecent exposure, trespassing, South Los Angeles Industrial Tr (Goodyear) PBID February 2006 Engineer's Report Page 4 of 15

prostitution and scavenging. They work to prevent graffiti and apprehend taggers when required. The patrol reduces ilegal dumping, burglary, vandalism and other crimes against property. The patrol wil respond to alars and maintain communication with LAPD area patrols and to calls for assistance from tenants and property owners and handle special projects. These services wil be provided only within the District boundaries. Anned security personnel wil monitor the District's system of video cameras 24 hours per day, 7 days a week. Recordings wil be made and stored of all images from all cameras to use in prosecuting criminal behavior. The video monitor wil act as a dispatcher observing incidences dispatch either the bike patrol or vehicle patrol to investigate. The monitor wil also act as the link to the Los Angeles Police Department and call LAPD to assist when necessary.

Security EQuipment Maintenance Bud2et ($80,000 of the District space management Budget) A video camera security system wil connect a fiber optic transmission system to a state of the ar monitoring and recording system that has been installed by the Community Redevelopment Agency (CRA) within the District. Additionally, controlled entry gate devices have been installed by the CRA at all of the 12 street entres into the district. A custom-built guard booth has also been constructed by the CRA in the Distrct. A budget for ongoing repairs and maintenance is established, including repair of broken gates and ars, technical malfunctions, replacement and/or repair to cameras, installation of software upgrades, repair or replacement of signs, cleaning the camera housing domes, the parking gate cabinets and the dispatch booth. These services wil be provided only within the District boundares. The BID wil assume ownership of the cameras, etc. upon establishment. If the BID does not renew, then ownership of the video camera security system wil revert back to the CRA. This wil be in a direct agreement between the CRA and the BID, upon the BID's establishment.

Maintenance A minimal budget is provided for maintenance services throughout the District two days a week. Maintenance staff wil maintain and clean existing tree wells and guard shack landscaping. Staff wil remove any graffiti or stickers from signs, poles, and cameras. These services wil be provided only within the District boundaries.

Administration The District budget reflects the use of a contractor to administer and manage the South Los Angeles Industrial Tract (Goodyear) PBID improvement and activities program. South Los Angeles Industrial Tract (Goodyear) PBID services wil be delivered 24 hours a day, seven days a week and require management staff to be on call 24 hours a day, seven days a week. The following tasks wil be required of a management staff to manage the South Los Angeles Industrial Tract (Goodyear) PBID. Oversee and manage security operations and contracts Accounting City Reports Property Owner Relations Advocate for District Attend L.A. BID Consortium meetings South Los Angeles Industrial Tr, (Goodyear) PBID February 2006 Engineer's Report Page 5 of 15

The District budget provides for contracting with a PBID management company to complete the above tasks. In addition to administrative labor the budget contains costs for operating a small offce and insurance.

City Fees Fees are budgeted in order to fund the expenses charged by the City and County for collection and distribution of BID revenue.

Reserve for Slow Payment A percent of the budget is held in reserve to offset delinquent and/or slow payment from both public and private properties. EXHIBIT B: ESTIMATE OF COST

The following table shows the projected budget for 2007.

Distrct space management $ 700,971.41 Administration 60,000

City Fees 17,000 PBID Reserve 11,000

Total $ 788,971.41

Bud2et Notations

1. Assessments wil be subject to changes in the Los Angeles Consumer Price Index (CPI), for all urban consumers, annual increases not to exceed 3% per year. Increases wil be detennined by the PBID advisory board and wil vary between 0 and 3% in any given year. Increases may not exceed the actual CPI increase in any given year. South Los Angeles Industrial Tl, (Goodyear) PBID . February 2006 Engineer's Report Page 6 of 15 EXHIBIT C: METHOD OF APPORTIONMENT Background The South Los Angeles Industrial Tract (Goodyear) PBID fonnation proponents are petitioning the City to establish a property-based business improvement district to finance the proposed improvements and activities ("Improvements") as outlined in Exhibit A. These Improvements wil extend or are above those services the City of Los Angeles currently provides. The property owners in the PBID area wil bear the cost of the Improvements through an assessment, which is calculated based on the special benefit each parcel receives fYom the proposed Improvements.

PBID Boundary The South Los Angeles Industrial Tract (Goodyear) PBID area is the industrial area primarily between Slauson Avenue, Florence Avenue, Avalon Boulevard and Central Avenue. (See management plan produced by Urban Place Consulting Group, Inc. for exact boundares) The underlying principle is that the assessment area should include all properties which wil derive enhanced benefits fYom the services provided, and which impose additional costs on the industral distrct environment. The Post Offce parcel is not included in the PBID and services wil not be provided to the parcel, on the south side of Gage Avenue to the north side of Florence A venue between the east side of McKinley Avenue and the west side of Central A venue, because of restrcted access and Federal security measures.

Special Benefit The City of Los Angeles LSPM PBID establishment law and the State Constitution Aricle XIIID require that assessments be levied according to the special benefit each parcel receives ::om the improvements and activities.

We detennined that the proposed improvements and activities provide a special benefit to the real property within the district area as discussed below for each program. Each of the programs is designed to meet the goals of the PBID; to improve the appearance and safety of the PBID, to increase building occupancy and lease rates, to encourage new business development and attract ancilar businesses and services.

A General Benefit is defined as a benefit to properties in the area and in the surrounding community or benefit to the public in general resulting fYom the improvement, activity or service to be provided by the assessment levied. Inasmuch as all services wil be provided to the properties within the District boundares and no services wil be provided outside the District boundares, all general benefits (if any) to the surrounding community and general public are intangible and not quantifiable.

District space manae:ement Proe:ram This program, as described in Exhibit A, wil provide a higher level of security and maintenance for the PBID area than the City currently provides. The anned patrols and vehicle patrols provide a service that is specific to the Goodyear district area and are only provided within the District boundares, thus, each parcel located in the PBID will benefit fYom the higher level of security services. Therefore, it is our opinion that the increase level of security provides a South Los Angeles Industrial Trc._.(Goodyear) PBID February 2006 Engineer's Report Page 7 of 15

special benefit to the parcels in the district area and any potential general benefits are intangible

and not quantifiable."

The maintenance programs expand the scale, scope and frequency of the maintenance services the City currently provides in the PBID area. The maintenance program is provided only to the Goodyear district area within the District boundaries, thus, each parcel located in the PBID wil benefit from this higher level of maintenance services. Therefore, it is our opinion that the increase level of maintenance provides a special benefit to the parcels in the district area and any potential general benefits are intangible and not quantifiable.

In addition to the special benefits described above for the three programs the PBID offers there are also less tangible reasons why these services provide only a special benefit to those properties within the PBID.

1. The surounding community is predominantly residential with retail along the major corrdors. The businesses within the proposed district are manufacturing and wholesale in nature. They do not attract the general public to enter the district to conduct business. The PBID area contains security gates at all entrances and exits to the Distrct. The businesses manufacture their products and then ship to wholesale customers outside of the district. 2. All improvements and activities to be provided through the Goodyear PBID are special servces and are above and beyond the general level of service the City currently provides. 3. All improvements and activities to be provided through the Goodyear PBID are designed by the. property owners to increase business revenue and provide special benefits that may result in increased rental occupancy rates and anual revenue incomes to the owners of real property within the district. 4. The California State Legislature found that assessments levied for the purpose of providing improvements and promoting activities that benefit real property are not taxes for the general benefit of a city, but are assessments for the improvements and activities which confer special benefits upon the real property for which the improvement and activities are provided. Streets and Highways Code Section 36601 (d).

All general benefits to the surrounding community and public in general are intangible and are not quantifiable. All benefits derived from the assessments outlined in the Management District Plan are for services directly benefiting the property owners in this specialized district and support increased commerce and the goals and objectives of the business improvement district.

Assessment Method Determining the proportionate share of special benefit among the parcels of real property, including the governent owned parcels, within the proposed assessment district which benefit from the proposed Improvements is the result of a four-step process: South Los Angeles Industrial Trc _. (Goodyear) PBID February 2006 Engineer's Report Page 8 of 15

1. Defining the proposed improvements (which were defined by the PBID Steering Committee) 2. Identifying how each parcel specially benefits from the proposed improvements (see assessment method) 3. Detemmining the amount of the special benefit each parcel receives in relation to the other parcels in the District (see assessment method) 4. Apportioning the cost of the proposed improvements to each parcel based on the special benefit received (see assessment calculation).

The proposed Improvements as outlined in Exhibit A wil provide a higher level of service than the City provides with City funds to those parcels in the PBID area. Therefore, every parcel in the PBID benefits from the Improvements and wil receive enhanced district space management services. The distrct space management security programs are designed to deliver service to each parcel within the Distrct.

The lot square footage is the only assessment varable for the distrct space management servce program. Public safety costs allocated to the lot acknowledges the benefit to all property owners and provides a safer enviomnent to all the owners withn distrct area. There are several reasons why the assessment methodology uses this factor: 1) the benefit from the safety program is provided throughout the PBID; 2) the safety program is intended to enhance the rental occupancy rates and anual revenue incomes to each individual parcel in the distrct by providing a safer

enviromnent; and 3) the parcel size is a good indicator of the parcel's highest and best use of the property and most accurately reflects the quantity of services provided to each parceL.

Assessment Calculation To calculate each parcel's assessment for this activity, divide the entire PBID Budget of $788,971.41 by the total number of lot square feet, 8,766,349 in the District, which equals $0.089897 per lot square foot. Then multiply the $0.09 assessment per square foot of lot, which then equals that parcel's assessment. For example, if a parcel has 10,000 lot square feet, its assessment is $900.00 (10,000 x $0.09).

CPI Adjustment Assessments wil be subject to changes in the Los Angeles Consumer Price Index (CPI), for all urban consumers, annual increases not to exceed 3% per year. Increases will be detemmined by the PBID advisory board and wil vary between 0 and 3% in any given year. Increases may not exceed the actual CPI increase in any year.

Treatment of Residential Housing Properties zoned solely for residential or agrcultural use within the boundaries of the District, if any, wil not be assessed.

The District does not contain any parcels that are zoned solely for residential or agricultural use.

Bonds The District will issue no bonds. South Los Angeles Industrial Tri. (Goodyear) PBID February 2006 Engineer's Report Page 9 of 15

EXHIBIT D: ASSESSMENT ROLL

The assessment methodology used is based on Lot Square Footage of a parceL. This is the exact same methodology used in the previous attempt to establish the District, but with decreased assessment amounts. The decrease in assessment amounts is the direct result of District property owner feedback to lower the total budget amount.

The total assessment amount for 2007 is $788,971.41 apportioned as follows.

Parcel Number Assessment Roll

6007 -005-014 5950 Avalon Associates 97,138 $8,742.42 6007 -011-011 6309 Central Avenue Lie 80,150 $7,213.50 6007-006-014 Francisco & Silvia Navarro 43,124 $3,881.16 6007 -006-015 Francisco & Silvia Navarro 12,196 $1,097.64 6007-006-016 Francisco & Silvia Navarro 13,939 $1,254.51 6007-011-009 900 East 62nd Street Lie 71,438 $6,429.42 6007-007-003 906 East 60Th Street Building 28,749 $2,587.41 6007-007-004 906 East 60Th Street Building 26,571 $2,391.39 6007-011-010 AMF Properties Inc 77,101 $6,939.09 6007-019-007 Andhill Company 115,869 $10,428.21 6007-019-011 Andhill Company 21,344 $1,920.96 6007-002-028 Angelica Realty Co 132,858 $11,957.22 6007-003-018 Angelica Realty Co 20,037 $1,803.33 6007-016-029 Apex Pattern Co 47,530 $4,277.70 6007-010-008 Armstrong, Gary P 19,602 $1 ,764.18 6007-010-007 Armstrong, Gary P And 39,639 $3,567.51 6007-018-002 Balsamo, John And Frances A Trs 7,405 $666.45 6007 -018-003 Balsamo, John And Frances A Trs 25,700 $2,313.00 6007-018-004 Balsamo, John And Frances A Trs 15,246 $1,372.14 6007-018-026 Balsamo, John And Frances A Trs 18,295 $1,646.55 6007-018-027 Bank Of America 67,082 $6,037.38 6007 -019-008 Becerra, Jesus 13,503 $1,215.27 6007-005-005 Benjamins, Abraham Tr 54;450 $4,900.50 6007 -010-009 Benjamins, Abraham Tr 18,295 $1,646.55 6007-010-010 Benjamins, Abraham Tr 14,810 $1,332.90 6007-011-002 Ben'amins, Abraham Tr 67,082 $6,037.38 6007 -015-027 Benjamins, Abraham Tr 30,928 $2,783.52 6007-003-011 Book Covers Inc 113,256 $10,193.04 6007 -004-016 Bookman, Lawrence Tr Et AI 22,651 $2,038.59 6007-017-001 Boster, Judy L Et AI 18,295 $1,646.55 6007 -017 -002 Boster, Judy L Et AI 11,761 $1,058.49 6007-018-029 Boster, Judy L Et AI 9,583 $862.47 6007-009-011 C Pac Seafoods 8,712 $784.08 6007-015-025 Carboyan,Koko And Lilian 10,018 $901.62 6007 -015-026 Carboyan,Koko And Lilian 7,840 $705.60 South Los Angeles Industrial Tn - (Goodyear) PBID February 2006 Engineer's Report Page 10 of 15

6007-007-015 Cardenas,Delinda 51,836 $4,665.24 6007-007-016 Cardenas,Delinda 16,988 $1,528.92 6007-015-023 Chavez, Rigoberto And 36,926 $3,323.34 6007 -004-013 Cherouge Corp 22,215 $1,999.35 6007 -009-025 Chohan,Shaukat A And Mahmooda K 99,316 $8,938.44 6007 -006-021 Johnson, Marc TR 12,632 $1,136,88 6007 -006-024 Johnson, Marc TR 51,836 $4,665,24 6007 -009-006 CityPaper Box Co 13,939 $1,254,51 6007 -005-016 Contreras, Sara Tr 89,298 $8,036,82 6007 -015-017 Croxen,Patricia A Tr 17,345 $1,561.05 6007-005-015 D Delat Partnership 19,166 $1,724.94 6007-008-014 827 E 62nd St LLC 30,492 $2,744.28 6007-008-015 827 E 62nd St LLC 19,602 $1 ,764.18 6007-008-016 827 E 62nd St LLC 22,651 $2,038.59 6007-002-017 Delgado S Frames 16,552 $1,489.68 6007-002-022 Delgado,Antonio And 22,651 $2,038.59 6007-002-018 Delgado,Antonio And Angelina And 80,586 $7,252.74 6007-002-019 Delgado,Antonio And Angelina And 48,351 $4,351.59 6007-002-023 Delgado,Felipe J And 50,094 $4,508.46 6007-005-001 Delgado,Felipe J And Silvia And 49,222 $4,429.98 6007-005-019 Delgado, Rafael And 55,146 $4,963.14 6007-018-021 Deruiter Henry H Co Tr 152,460 $13,721.40 6007-017-021 Deruiter,Henry H Co Tr Et AI 67,518 $6,076.62 6007-018-014 Dilella,Miguel A Sr 73,616 $6,625.44 6007-007-017 Dovetail Furniture And Designs 33,541 $3,018.69 6007-007-018 Dovetail Furniture And Designs 9,583 $862.47 6007-019-001 6809 Stanford Ave LLC 67,518 $6,076.62 6007-019-002 6809 Standford Ave LLC 28,314 $2,548.26 6007-008-017 Dulgarian,Dean J And Laura D Trs 19,602 $1,764.18 6007-011-001 Dulgarian,Dean J And Laura D Trs 39,639 $3,567.51 6007-011-003 Dulgarian,Duke And 39,639 $3,567.51 6007-019-005 Elghanian,Liza T 30,492 $2,744.28 6007-019-006 Elghanian,Liza T 30,492 $2,744.28 6007-018-009 Encarnacion,Benjamin And 17,424 $1,568.16 6007-016-009 General Interest Dev, 19,602 $1,764.18 6007-016-025 General Interest Dev, 10,670 $960.30 6007-016-028 General Interest Dev. 19,602 $1,764.18 6007-016-030 General Interest Dev, 57,934 $5,214.06 6007-008-010 Flores,Jose M And Blanca E And 27,007 $2,430,63 6007-008-011 Flores,Jose M And Blanca E And 29,185 $2,626,65 6007 -006-009 Gheytanchi Invs Group Llc 33,541 $3,018,69 6007-006-005 J&R Co 13,503 $1,215.27 6007 -006-006 Friedman, Morris 13,503 $1,215.27 6007-007-021 Friend,Ben And Eleanor Trs 9,147 $823,23 6007-015-009 Friend,Ben And Eleanor Trs 6,098 $548.82 6007-015-010 Friend,Ben And Eleanor Trs 6,969 $627.21 6007-005-008 Friend,Eleanor Tr 13,503 $1,215.27 South Los Angeles Industrial Trú,- lGoodyear) PBID February 2006 Engineer's Report Page 11 of 15

6007 -005-009 Friend,Eleanor Tr 14,810 $1,332.90 6007 -008-009 Friend,Eleanor Tr 30,056 $2,705.04 6007-010-014 Garbellini,Gianfranco Co-Tr 18,295 $1,646.55 6007-015-018 Gee,Albert Et AI 17,583 $1,582.47 6007-016-014 General Electric Co 97,574 $8,781.66 6007-019-003 Gomez,Jorge 12,196 $1,097.64 6007 -019-004 Gomez,Jorge 12,196 $1,097.64 6007-017-014 Gonzalez,Adam 9,583 $862.47 6007-004-001 Goodman,Melvyn And Lynn Trs 54,450 $4,900.50 6007-006-008 Goodman,Melvyn And Lynn Trs 22,215 $1,999.35 6007 -018-013 Guillermina Dondiego Inc 34,412 $3,097.08 6007-0,15-024 Hammond,Jean S Tr 36,926 $3,323.34 6007-016-015 Hanel,Robert D And Adele G Trs 22,651 $2,038.59 6007-016-016 Hanel,Robert D And Adele G Trs 11,325 $1,019.25 6007-016-017 Hanel,Robert D And Adele G Trs 22,651 $2,038.59 6007-016-018 Hanel,Robert D And Adele G Trs 44,866 $4,037.94 6007-010-013 Hardie,Gilbert SEt AI Trs 14,374 $1,293.66 6007-009-014 Hoyer, Ernest And Aviva Trs 8,712 $784.08 6007 -009-015 Hoyer, Ernest And Aviva Trs 21,780 $1,960.20 6007 -006-012 Hoyer, Ernest And Aviva Trs Et AI 17,424 $1,568.16 6007 -006-013 Hoyer,Ernest And Aviva Trs Et AI 20,908 $1,881.72 6007-006-011 Hoyer,Ernest C And Aviva S Trs 22,215 $1,999.35 6007 -007 -001 Hoyer, Ernest C And Aviva S Trs 22,215 $1,999.35 6007-004-012 Hoyer, Ernest C Co Tr 22,215 $1,999.35 6007-009-007 Hoyer, Ernest C Co Tr 8,712 $784.08 6007 -009-008 Hoyer, Ernest C Co Tr 34,412 $3,097.08 6007-004-009 J And B Enterprises 76,665 $6,899.85 6007-015-003 Jedlick, Michael 4,356 $392.04 6007 -017 -020 Jedlick,Michael And Gail 10,890 $980.10 6007 -015-002 Jedlick,Michael L And Gail T 14,810 $1,332.90 6007 -009-012 Daniel & Daniel Hoyer 17,424 $1,568.16 6007 -009-013 Daniel & Daniel Hoyer 8,712 $784.08 6007-015-020 Jonas Enterprises 5,662 $509.58 6007 -015-021 Jonas Enterprises Inc And 17,701 $1,593,09 6007 -015-022 Jonas Enterprises Inc And 36,926 $3,323,34 6007 -008-008 Jovel,Roberto A And Martha L 26,571 $2,391 .39 6007 -003-014 Karabel And Sons Investments 32,234 $2,901.06 6007 -002-002 Karapetian, Vahe 7,405 $666.45 6007 -002-003 Karapetian, Vahe 36,590 $3,293.10 6007 -002-004 Kara etian,Vahe 49,658 $4,469.22 6007-002-005 Karapetian, Vahe 36,590 $3,293.10 6007-002-006 Karapetian, Vahe 36,590 $3,293.10 6007-002-008 Karapetian, Vahe 18,295 $1,646.55 6007-002-009 Karapetian, Vahe 18,295 $1,646.55 6007-002-024 Karapetian, Vahe 35,283 $3,175.4 7 6007 -002-026 Karapetian, Vahe 11,761 $1,058.49 6007 -002-027 Karapetian, Vahe 17,859 $1,607,31 South Los Angeles Industrial Trc~. (Goodyear) PBID February 2006 Engineer's Report Page 12 of 15

6007 -002-029 Karapetian, Vahe 10,890 $980.10 6007 -003-001 Karapetian, Vahe 18,305 $1,647.45 6007 -003-015 Karapetian, Vahe 32,234 $2,901.06 6007-003-016 Karapetian, Vahe 32,234 $2,901.06 6007-003-017 Karapetian, Vahe 20,037 $1,803.33 6007 -005-006 Karapetian, Vahe 27,442 $2,469.78 6007 -005-007 Karapetian, Vahe 13,503 .. " $1,215,27 6007-019-012 Karubian,Ralph K And Rhoda C 34,412 $3,097,08 6007-019-013 Karubian,Ralph K And Rhoda C 30,927 $2,783.43 6007-019-014 Karubian,Ralph K And Rhoda C 20,908 $1,881.72 6007-018-008 Kiyan Design Corp 17 ,424 $1,568.16 6007-010-016 Kohen,Jerry And Orit 10,890 $980.10 6007-010-017 Kohen,Jerry And Orit 17,859 $1,607.31 6007-010-018 Kohen,Jerry And Orit 53,143 $4,782.87 6007-003-019 Kramer Metals 33,976 $3,057.84 6007-003-020 Kramer Metals 62,726 $5,645.34 6007-003-021 Kramer Metals 63,597 $5,723.73 6007-003-007 Kramer,Stanley J And Susan M 31,798 $2,861.82 6007-003-008 Kramer,Stanley J And Susan M 15,246 $1,372.14 6007-008-007 Kramer,Stanley J Tr 54,450 $4,900.50 6007-007-010 Krieger,Gary And Kim 14,374 $1,293.66 6007-007-011 Krieger,Gary And Kim 30,492 $2,744.28 6007-007-012 Krieger,Gary And Kim 14,688 $1,321.92 6007-006-017 Kum Soon Han 8,712 $784.08 6007-006-018 Kum Soon Han 8,712 $784.08 6007-006-019 Kum Soon Han 17,424 $1,568.16 6007-006-020 Kum Soon Han 21,780 $1,960.20 6007-001-900 D Delat Partnership 15,681 $1 ,411 .29 6007-001-007 Lazar,Barry J And Rochelle Trs 54,885 $4,939.65 6007-001-008 Lazar,Barry J And Rochelle Trs 54,885 $4,939.65 6007-005-012 Lee,Tom SAnd Miyoung M 22,215 $1,999.35 6007-018-007 Lee,Wiliam E And Kathryn S 69,260 $6,233.40 6007 -007 -008 Vm Realty LLC 15,681 $1,411,29 6007-007-009 Vm Realty LLC 69,696 $6,272.64 6007-003-010 Community Redevelopment Agency 120,225 $10,820.25 6007-017-003 Maldonado,Jose C And Maria J And 20,473 $1,842.57 6007-017-004 Maldonado,Jose C And Maria J And 34,412 $3,097.08 6007-018-028 Martinez,Miguel A And Maria C 4,791 $431 .19 6007 -018-012 Martinez,Paul And June Trs 103,237 $9,291,33 6007 -008-012 Mattis,Theresa Co Tr 15,681 $1,411.29 6007 -008-013 Matts,Theresa Co Tr 17,859 $1,607.31 6007-010-012 Mazin,Joseph And Donna Trs Et AI 14,810 $1,332.90 6007 -010-020 Mazin,Joseph And Donna Trs Et AI 14,810 $1,332.90 6007 -006-002 Mbb Patners 40,946 $3,685.14 6007 -006-025 Mbb Patners 77,536 $6,978.24 6007-015-011 Greer S & S Greer TR 14,397 $1,295.73 6007 -015-005 Teresa Gonzalez 13,939 $1,254.51 South Los Angeles Industrial Tri. ,'Goodyear) PBID February 2006 Engineer's Report Page 13 of 15

6007-015-007 Greer S & S Greer TR 11,761 $1,058.49 6007 -006-007 J&R Co 18,730 $1,685.70 6007-015-004 Fleet Properties Development 6,098 . $548.82 6007 -009-019 Milton Koll Family Llc 30,056 $2,705.04 6007 -009-020 Milton Koll Family Llc 27,878 $2,509.02 6007-009-021 Milton Koll Family Llc 7,840 $705.60 6007-009-022 Milton Koll Family Llc 13,503 $1,215.27 6007-006-010 Mitchel,R Inc 33,541 $3,018.69 6007-004-014 Nadel,Harry 22,215 $1,999.35 6007-016-004 National Sandblasting Co Inc 39,639 $3,567.51 6007 -017 -018 Neshanian,Barbara Tr 17,424 $1,568.16 6007 -017 -019 Neshanian,Barbara Tr 10,018 $901.62 6007-003-012 Newark Group Industries Inc 17,424 $1,568.16 6007-003-013 Newark Group Industries Inc 58,370 $5,253.30 6007-003-006 Nichols,Ruth M Exec 36,590 $3,293.10 6007-003-005 Efrain & Rosa Gonzalez 36,590 $3,293.10 6007-001-005 Nusbaum,Henry And Rose Trs 7,405 $666.45 6007-001-006 Nusbaum,Henry And Rose Trs 14,775 $1,329.75 6007-018-010 Pak,Nanci S 33,976 $3,057.84 6007~018-011 Pak,Nanci S 25,264 $2,273.76 6007-001-009 Devon Slauson LLC 36,590 $3,293.10 6007-002-001 Panfil,Wayne And Randee Tr 36,590 $3,293.10 6007-018-006 Pasilas,Jose And Elvia 55,321 $4,978.89 6007-002-020 Dulgarian, Duke 22,651 $2,038.59 6007-002-021 Dulgarian, Duke 3,484 $313.56 6007-007-019 Pietruszka, Gary And Fern 8,712 $784.08 6007-007-020 Pietruszka, Gary And Fern 34,412 $3,097.08 2121 Pico Dev LLC(Plastic And Rubber 6007-016-003 Engineering) 19,602 $1,764.18 6007-005-010 Plastopan California Realty Corp 51,836 $4,665.24 6007 -019-020 Premium Holdings Llc 33,105 $2,979.45 6007-015-012 Prime Processors 6,969 $627.21 6007-001-001 Radco Investments 16,900 $1,521.00 6007-010-001 G-5 International 98,881 $8,899.29 6007-010-002 Rangoola,Ajit SAnd Harsanjam K 17,859 $1,607.31 6007-010-003 Rangoola,Ajit SAnd Harsanjam K 21,780 $1,960.20 6007-017-015 Reininger,Ben 40,946 $3,685.14 6007 -017 -016 Reininger,Ben 9,583 $862.47 6007-017-013 Rosemead Realty Associates 9,583 $862.47 6007-009-001 Ross,Geoffrey S Co-Tr 6,098 $548.82 6007 -009-002 Ross,Geoffrey S Co-Tr 19,602 $1,764.18 6007-005-004 Sandoval,Raul And Luisa H 16,552 $1,489.68 6007-005-018 Sandoval, Raul And Luisa H 53,781 $4,840.29 6007-017 -017 Remedios A Quiroz 33,976 $3,057.84 6007-004-01 0 Bender, Martin 103,237 $9,291.33 6007 -007 -005 VM Realty LLC 27,878 $2,509.02 6007-007 -006 VM Realty LLC 17,859 1,607.31 6007 -007 -007 VM Realty LLC 26,571 $2,391.39 South Los Angeles Industrial Tr (Goodyear) PBID February 2006 Engineer's Report Page 14 of 15

6007 -004-015 Schachter,Bernard Tr 22,651 $2,038.59 6007-008-001 Schilit,Menachem Co Tr Et AI 30,056 $2,705.04 6007 -008-002 Schilit,Menachem Co Tr Et AI 17,424 $1,568.16 6007 -008-003 Schilit,Menachem Co Tr Et AI 23,522 $2,116.98 6007 -008-004 Schilit,Menachem Co Tr Et AI 30,492 $2,744.28 6007-008-005 Schilit,Menachem Co Tr Et AI 6,969 $627.21 6007-008-006 Schilit,Menachem Co Tr Et AI 35,283 $3,175.47 6007 -011-004 Seligman, Manuel Tr 30,492 $2,744.28 6007 -016-001 2121 Pico Dev LLC 13,503 $1,215.27 6007-016-002 2121 Pico Dev LLC 10,018 $901.62 6007-019-019 Sherman, Van 95,832 $8,624.88 6007 -009-009 Shugar,Arnold 17,424 $1,568.16 6007-009-010 Shugar,Arnold 8,712 $784.08 6007-005-011 Silver And Friend 44,431 $3,998.79 6007-004-002 . Smith, Michael G Et AI Trs 27,442 $2,469.78 6007-004-003 Smith, Michael G Et AI Trs 27,442 $2,469.78 6007-019-015 Sha Ents Inc 29,185 $2,626.65 6007-019-016 Sha Ents Inc 39,639 $3,567.51 6007 -003-004 South Avalon Boulevard Corp 35,719 $3,214.71 6007-009-005 Sraberg,Bradley G Tr 17,424 $1,568.16 6007-009-003 Sraberg,Gerald And Ilene 15,681 $1,411.29 6007 -009-004 Sraberg,Gerald And Ilene 27,442 $2,469.78 6007-009-018 Standard Nickel Chromium 15,681 $1,411.29 6007-009-026 Standard Nickel Chromium 15,681 $1 ,411 .29 6007-015-008 Sung, Jason S 6,098 $548.82 6007-011-005 Title Ins And Tr Co 45,738 $4,116.42 6007-017-005 Tri Gents Investments Inc 50,965 $4,586.85 6007-017-006 Tri Gents Investments Inc 24,393 $2,195.37 6007-017-007 Tri Gents Investments Inc 46,609 $4,194.81 6007-017-008 Tri Gents Investments Inc 30,492 $2,744.28 6007-017-009 Tri Gents Investments Inc 22,651 $2,038.59 6007-010-015 Turner,Paul 28,749 $2,587.41 6007-019-018 Turner,Paul 68,824 $6,194.16 6007-010-019 Turner,Paul And Shirley 14,374 $1,293.66 6007-019-017 Turner,Paul And Shirley P 34,412 $3,097.08 6007-010-011 Umana,Jose And Blanca N 18,295 $1,646.55 6007-003-022 United Alloys Inc 72,309 $6,507.81 6007-007 -002 United Polyner Materials Inc 16,552 $1,489.68 6007 -016-023 Vodhanel,Frank J And Evelyn L 49,664 $4,469.76 6007 -015-006 Walman,Mitchell Co Tr 33,541 $3,018.69 6007 -004-005 Wax, Marshall And Kathy 13,503 $1,215.27 6007-004-004 Wax,Marshali And Kathy Trs 54,450 $4,900.50 6007-004-006 Wax,Marshali And Kath Trs 13,503 $1,215.27 6007 -004-007 Wax,Marshali And Kathy Trs 27,442 $2,469.78 6007-004-008 Wax,Marshall And Kathy Trs 102,366 $9,212.94 6007-010-004 62 Avalon LLC 33,976 $3,057.84 6007 -010-005 62 Avalon LLC 15,246 $1,372.14 ", ,/Goodyear) PBID South Los Angeles Industrial Tr(. February 2006 Engineer's Report Page 15 of 15

6007 -010-006 62 Avalon LLC 10,018 $901.62 6007 -005-013 Western Colloid S C Inc 26,571 $2,391.39 6007-006-026 Western Colloid S C Inc 13,068 $1,176.12 6007-006-027 Western Colloid S C Inc 8,712 $784.08 6007 -016-019 Wilheim,Endre And Olga 16,988 $1,528.92 6007 -016-026 Wilheim,Olga Tr 27,878 $2,509.02 6007-018-015 Christopher E Park 24,393 $2,195.37 6007 -016-012 Calko Steel Inc. 26,775 $2,409.75 6007 -016-013 Calko Steel Inc. 23,175 $2,085.75 6007-009-023 Chohan, Shaukat 39,639 $3,567.51 6007-009-024 Chohan Shaukat 19 602 $1 764.18 l )

ORDINANCE NO.

An Ordinance of Intention to establish a Landscaping, Security, Programming and Maintenance Property Business Improvement District to be known as the South Los Angeles Industrial Tract (Goodyear) Business Improvement District ("District") pursuant to the provisions of the City's Landscaping, Security, Programming and Maintenance District Ordinance (Division 6, Chapter 9, Los Angeles Administrative Code ).

WHEREAS, the Landscaping, Security, Programming and Maintenance District Ordinance authorizes the establishment of Landscaping, Security, Programming and Maintenance Property Business Improvement Districts within specifically defined commercial districts of the City located within "special economic incentive zones" and the levying of assessments on real property within the districts to pay for improvements, maintenance and activities within the districts; and

WHEREAS, the proposed District is a commercial district located within the following "special economic incentive zones": Central Avenue Target Neighborhood Initiative Area, the Mid-Alameda State Empowerment Zone, and the Los Angeles Federal Empowerment Zone; and

WHEREAS, property owners within the District, who wil pay more than 30 percent of the total assessments proposed to be levied, filed written petitions requesting the City Council to establish such a district; and

NOW, THEREFORE,

THE PEOPLE OF THE CITY OF LOS ANGELES DO ORDAIN AS FOLLOWS:

Section 1. DECLARATION. Pursuant to the provisions of the Landscaping, Security, Programming and Maintenance District Ordinance, the City Council hereby declares its intention to establish a Landscaping, Security, Programming and Maintenance Property Business Improvement District to be known as the South Los Angeles Industrial Tract (Goodyear) Business Improvement District ("District").

Sec. 2. ADOPTION OF ENGINEER'S REPORT, MANAGEMENT DISTRICT PLAN AND PRELIMINARY REPORT OF THE CITY CLERK. The City Council hereby adopts, approves andcönfirms the Engineer's Report, the Management District Plan, and the Preliminary Report of the City Clerk, all of which are included in Council File No. 99-0172, and by this reference incorporate them here as though fully set forth.

Sec. 3. PARCELS WITHIN THE DISTRICT. The City Council hereby reaffirms its finding that all parcels which will have a special benefit conferred upon them and upon which an assessment will be imposed are identified in the Management District Plan. ) )

Sec. 4. PROPORTIONAL BENEFIT. The City Council hereby reaffirms that the assessment proposed to be imposed on each parcel does not exceed the reasonable cost of the proportional benefit conferred on that parceL.

Sec. 5. SEPARATION OF GENERAL AND SPECIAL BENEFITS. The City Council hereby reaffirms that it has separated the general benefits, if any, from the special benefits conferred on each parceL.

Sec. 6. ASSESSMENTS SUPPORTED BY ENGINEER'S REPORT. The City Council hereby reaffirms that all proposed assessments are supported by a detailed engineer's report prepared by a registered professional engineer certified by the state of California.

Sec. 7. DISTRICT BOUNDARIES. The City Council hereby declares that the boundaries of the proposed District are as described and illustrated in the Management District Plan and the Preliminary Report of the City Clerk. A description of the proposed District boundaries is as follows: Northern boundary-Slauson Avenue, southern boundary-Florence Avenue, western boundary-Avalon Boulevard, eastern boundary-Central Avenue from Slauson Avenue to Gage Avenue, eastern boundary-from Gage Avenue to Florence Avenue is the east property line of property facing on the east side of McKinley Avenue.

Sec. 8. IMPROVEMENTS AND ACTIVITIES. The City Council hereby declares that the proposed levy of assessments is to fund the improvements and activities detailed in the Management District Plan. They include, but are not limited to: a public safety program that is coordinated with integration with the Los Angeles Police Department, armed patrols, security equipment maintenance and upgrade, and administration.

Sec. 9. ANNUAL ASSESSMENT AND DURATION. The proposed District's total annual assessment for the first year is estimated to be $788,971. The annual assessment for subsequent years may be adjusted based upon the Consumer Price Index for the Los Angeles region or by a flat percentage rate, not to exceed three (3) percent of the previous year's assessment. The annual assessment shall be levied for a period of five years, which is the proposed duration of the District and the period during which the improvements and activities will be provided.

Sec. 10. BASIS FOR CALCULATING ASSESSMENTS. The proposed annual assessment for each property is based upon the property/land square footage. A full and complete description of the basis upon which the proposed assessment was calculated is contained in the Engineer's Report and the Management District Plan.

Sec. 11. COLLECTION OF ASSESSMENTS. The City Council hereby declares that to the extent possible, assessments shall be collected at the same time and in the same manner as county ad valorem property taxes and shall be subject to all laws providing for the collection and enforcement of assessments. For properties that do not appear on the county tax rolls or for assessments for any years in which the City is ) j unable to transmit the assessment information to the county in sufficient time for the county to collect the assessments with the county ad valorem property taxes, the City Clerk may bil and collect the assessments by mailing assessment notices ("Statement of Assessment Due") to each property owner within the District at the address shown on City records. Assessments billed by the City Clerk are due forty-five (45) calendar days after the date of the Statement of Assessment Due.

Sec. 12. NOTICE, PROTESTS AND HEARING PROCEDURES. The City Clerk shall comply with the notice, protest, and hearing procedures prescribed in the Proposition 218 Omnibus Implementation Act (California Government Code, Section 53750 et seq.).

Sec. 13. SUMMARY OF PROCEDURES FOR COMPLETION AND RETURN OF BALLOTS. This Ordinance of Intention and a ballot (in the form of Exhibit A, attached hereto and incorporated herein by this reference) shall be mailed by first-class mail to each property owner in the proposed District. The ballot may be completed by the person(s) or entity owning the property within the proposed District. To complete the ballot, the property owner should do the following: (1) verify that the information listed on the ballot is correct; (2) indicate his or her decision to either approve or disapprove of the District assessment by marking an "X" or other verifiable mark in the appropriate place; (3) sign the ballot; (4) insert the completed ballot into the secrecy envelope provided; and (5) place the secrecy envelope inside the return envelope and mail to the City Clerk's Office.

Sec. 14. PUBLIC HEARING. The City Council wil hold a public hearing to determine whether to establish the District and levy assessments on , 2006, at 10 a.m., or as soon thereafter as City Council business permits, and on any days for continued hearing as ordered by the City Council, in the John Ferraro Council Chamber, Room 340, City Hall, 200 North Spring Street, Los Angeles, California 90012. At the public hearing, the City Council shall hear the testimony of all interested persons for or against the establishment of the proposed District, the boundaries of the proposed District, or the furnishing of specified types of improvements or activities of the proposed District.

Sec. 15. NOTICE TO RECORD OWNERS. The City Clerk shall give notice of the public hearing, in the manner specified in Government Code Section 53753, to the record owner of each parcel subject to the levy of an assessment. The notice shall be given at least 45 days before the public hearing date and shall specify that the public hearing will be to determine whether the Council will establish the District and levy assessments.

Sec. 16. TABULATION OF ASSESSMENT BALLOTS. At the conclusion of the public hearing, the City Clerk shall tabulate all assessment ballots that have been submitted and not withdrawn. To be included in the tabulation, assessment ballots must be received by the City Clerk either at the address indicated in the notice required by Government Code Section 53753 or at the site of the public hearing prior to the conclusion of the public hearing. The City Clerk will certify the results of the tabulation to the City Council during its meeting on ,2006, at 10:00 a.m., ) ) or as soon thereafter as City Council business permits, in the John Ferraro Council Chamber, Room 340, City Hall, 200 North Spring Street, Los Angeles, California 90012.

Sec. 17. MAJORITY PROTEST. If there is a majority protest against the imposition of the assessment, the City Council wil not impose an assessment. A majority protest will exist if the assessment ballots submitted, and not withdrawn, in opposition to the proposed assessment exceed the assessment ballots submitted, and not withdrawn, in its favor, weighting those assessment ballots by the amount of the proposed assessment to be imposed upon the identified parcel for which each assessment ballot was submitted. ~ )

Sec. 18. CERTIFICATION. The City Clerk shall certify to the passage of this ordinance and have it published in accordance with Council policy, either in a daily newspaper circulated in the City of Los Angeles or by posting for ten (10) days in three public places in the City of Los Angeles: one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall; one copy on the bulletin board located at the Main Street entrance to the Los Angeles City Hall East; and one copy on theof bulletin Records. board located at the Temple Street entrance . to the Los Angeles County Hall I hereby certify that the foregoing Ordinance was passed by the Council of the City of Los Angeles at its meeting of

FRANK T. MARTINEZ, City Clerk

By Deputy Approved on

ANTONIO R. VILLARAIGOSA, Mayor

Date

Date 5 / ;;/ f) fa , (

Council File No. 99-0172 L J )

The South LA Industrial Tract (Goodveàr) Advisorv Board

Steve Stone, ACME Felt Works 6500 Stanford Ave 6506 Stanford Ave 6510 Stanford Ave 6600 Stanford Ave

Duke Du1garan, Score Properties 5862 Avalon Blvd 850 E. 62nd St

Sofia Miler, Plastopan 812 E. 59th St