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HomeMy WebLinkAbout22 Res Nos. 2021-17, 2021-18, and 2021-19 - President's Plaza BID III STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: May 13, 2021 PREPARED BY: Thomas J. Metz, Deputy City Treasurer Randy Chavez, Landscape Supervisor REQUEST: Approve: 1) the initiation of proceedings to renew the President’s Plaza Property III Property and Business Improvement District and to levy and collect assessments therein; 2) the 2021/2022 Management District Plan/Engineer’s Report preliminarily; and 3) an assessment ballot proceeding so that qualified property owners within the district may vote on the levying of district assessments. ______________________________________________________________________ Recommendation Waive further reading and adopt: 1. Resolution No. 2021-17, initiating proceedings for the renewal of the President’s Plaza III Property and Business Improvement District and the levy and collection of assessments for fiscal year 2021/2022, pursuant to the provisions of part 7 of division 18 of the California Streets and Highways Code. 2. Resolution No. 2021-18, describing proposed improvements and services and granting preliminary approval to the 2021/2022 Management District Plan/Engineer’s Report regarding the proposed renewal of the President’s Plaza III Property and Business Improvement District, pursuant to the provisions of part 7 of division 18 of the California Streets and Highways Code. 3. Resolution No. 2021-19, declaring the City’s intention to renew the President’s Plaza III Property and Business Improvement District and to levy and collect assessments therein, and calling for an assessment ballot proceeding to submit to the qualified property owners within that district the question of levying district assessments, commencing with fiscal year 2021/2022. Strategic Plan Objective Not applicable. Background Analysis May 13, 2021 — Staff Report Intent Meeting for PresidenYs Plaza III Page 2 of 2 The PresidenYs Plaza III Property and Business Improvement District ("PBID III") was originally formed for a five-year term, starting with fiscal year 2001/2002. A majority of property owners subsequently voted to renew the district for three additional five-year terms, the current one being for fiscal years 2016/2017 through 2020/2021. Fiscal year 2020/2021 is the final year of that term. Renewal is now requested for a new five-year term for fiscal years 2021/2022 through 2025/2026. PBID III includes properties on the south side of Highway 111 and on the north side of EI Paseo, between Highway 74 and Sage Lane. PBID lll street boundaries are shown on page 15 of the Engineer's Report. The City of Palm Desert collects annual assessments from property owners in order to pay for services such as landscape maintenance, street sweeping, and parking lot lighting within the common parking lot areas. PBID 111 property owners, representing more than 50 percent of the proposed assessment to be levied, have petitioned the Palm Desert City Council to initiate renewa/ proceedings. Staff recommends that the City Council approve the attached resolutions in order to initiate the renewal process for PBID III. If these resolutions are approved, then a public hearing will be scheduled for July 8, 2021, in order to open and count the ballots received. Fiscal Analvsis The assessment and collection of the fully levy amount will finance both ongoing maintenance of PBID III and associated staff costs, relieving the City of financial burden. LEGAL REVIEW N/A DEPT. REVIEW FINANCIAL REVIEW ASSISTANT CITY MANAGER �c�.,.r.T'Ni. N%o�t� �indi/:/irc,[ine ILNb� I'i. I'/99'LP � Robert W. Hargreaves Janet M. Moore Janet M. Moore City Attorney Director of Finance Director of Finance City Manager L Todd Hileman: L. TpdG{ hti.I.Cvuqw ATTACHMENTS Andy Firestine Assist City Manager r�� ry �nr nvrn � ��rrnwt 1. Resolution No. 2021-17 APPROVF,D �� DF.NTF,D 1tGCE1VED OTHEP 2. ResolutionNo.2021-18 p,-lrnl�c{ K�.Ncts.,�l-Il.7.Cr�l-18t�Ca1-�`I 3. Resolution No. 2021-19 ��,;F,TI�IG qA'T� �� �:�.�} �� 4. 2021/2022 Management �i���j �{�miIL.�1'Jn xCtW�f✓I, ti1P tttYL'IP (�1u ivNUn�llor �� 5. PBID III Petition with Sign��� N��� F Al3SGN'I� �� ABSTAIN• �� VERIFIED BY• ����5 Ori�ival on File with City Clcrk'a O�ce RESOLUTION NO. 2021-17 1 of 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE RENEWAL OF THE PRESIDENT’S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT AND THE LEVY AND COLLECTION OF ASSESSMENTS THEREIN, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2021/2022 The City Council of the City of Palm Desert, California (hereafter referred to as the “City Council”), does resolve as follows: WHEREAS, the City Council desires to initiate proceedings for the renewal of President’s Plaza III Property and Business Improvement District (hereafter referred to as the “District”), pursuant to the provisions of the Property and Business Improvement District Law of 1994, part 7 of division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”), and for the levy and collection of assessments by the County of Riverside on behalf of the City of Palm Desert in order to pay for the improvements and activities that are described in the Management District Plan (hereafter referred to as the “Plan”) and in the Engineer’s Report (hereafter referred to as the “Report”), which are combined; and WHEREAS , pursuant to the Act, a written petition of the property owners within the District, representing more than 50 percent of the proposed assessments to be levied, has been presented to the City Council; and WHEREAS, the City Council has retained Willdan Financial Services (hereafter referred to as the “Assessment Engineer”) for the purposes of assisting with the renewal of the District and the establishment of assessments; preparing and filing the Plan with the city clerk, in accordance with the Act; and preparing and filing the Report with the city clerk, in accordance with the requirements of California Constitution article XIII D; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, THE LEGISLATIVE BODY FOR THE DISTRICT, AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. Filing of Plan and Report. The City Council hereby orders the Assessment Engineer to prepare and file with the city clerk the Plan and Report, which addresses the renewal of, and the establishment of assessments for, the District, in accordance with the Act. RESOLUTION NO. 2021-17 2 of 2 Section 3. Improvements: The improvements and activities within the District include maintenance of parking lot landscaped areas, maintenance and operation of parking lot lighting facilities, debris removal, and maintenance of parking lot surface areas. These improvements and activities are more specifically described in the Plan and Report that will be filed annually, which is attached hereto and incorporated herein by reference. Section 4. Boundaries and Designation: The proposed District will consist of all parcels located in the commercial business area known as the President's Plaza Ill within the City of Palm Desert, the County of Riverside, and the State of California. The territory of the proposed District is generally located south of Palm Desert Drive at Highway 111, north of El Paseo, west of Sage Lane, and east of Old Highway 74. It also includes the Palm Desert Parking Lot, which is a lease parcel to the City of Palm Desert that is located south of Highway 111, east of New Highway 74, and west of Old Highway 74. The proposed District will be designated as the “President’s Plaza III Property and Business Improvement District.” PASSED, APPROVED, AND ADOPTED by the Palm Desert City Council on the 13th day of May 2021, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ KATHLEEN KELLY, MAYOR ATTEST: _____________________________________ M. GLORIA SANCHEZ, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA RESOLUTION NO. 2021-18 1 of 2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DESCRIBING PROPOSED IMPROVEMENTS AND SERVICES AND GRANTING PRELIMINARY APPROVAL TO THE MANAGEMENT DISTRICT PLAN AND THE ENGINEER’S REPORT REGARDING THE PROPOSED RENEWAL OF THE PRESIDENT’S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2021/2022 The City Council of the City of Palm Desert, California (hereafter referred to as the “City Council”), does resolve as follows: WHEREAS, the City Council has, by previous resolution, initiated proceedings for the renewal of the President’s Plaza III Property and Business Improvement District (hereafter referred to as the “District”), pursuant to the provisions of the Property and Business Improvement District Law of 1994, part 7 of division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”), and has ordered the preparation of a Management District Plan (hereafter referred to as the “Plan”) and an Engineer’s Report (hereafter referred to as the “Report”), which are combined, for the District; and WHEREAS, the City Council has retained Willdan Financial Services (hereafter referred to as the “Assessment Engineer”) for the purposes of assisting with the renewal of the District and the establishment of assessments; preparing and filing the Plan with the city clerk, in accordance with the provisions of the Act; and preparing and filing the Report, in accordance with the provisions of California Constitution article XIII D; and WHEREAS, the Assessment Engineer has presented to the City Council the Plan and Report, which are combined and which are incorporated herein by reference; and WHEREAS, the City Council has examined and reviewed the Plan and Report, as presented, and is satisfied with the District, the budget items and documents as set forth therein, and the assessments, which have been spread in accordance with the special benefits that are received from the improvements, operation, maintenance, and services to be performed within the District; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, THE LEGISLATIVE BODY FOR THE DISTRICT, AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. Content of Plan. That the Plan, as presented, consists of the following: A. A description of improvements and services that the District will provide. RESOLUTION NO. 2021-18 2 of 2 B. The annual budget (estimates of costs and expenses of services,operations, and maintenance). C. The district roll containing the levy of assessments for each assessor parcel within the District. D. A boundary map for the boundaries of the District. Section 3. Content of Report. That the Report, as presented, consists of the following : A. A description of improvements. B. The annual budget (costs and expenses of services, operations, and maintenance). C. The method of apportionment. D. A boundary map for the boundaries of the District. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this 13th day of May 2021, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ KATHLEEN KELLY, MAYOR ATTESTED: _____________________________________ M. GLORIA SANCHEZ, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA RESOLUTION NO. 2021-19 1 of 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE CITY’S INTENTION TO RENEW THE PRESIDENT’S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, TO LEVY AND COLLECT ASSESSMENTS THEREIN, AND TO CALL FOR AN ASSESSMENT BALLOT PROCEEDING TO SUBMIT TO QUALIFIED PROPERTY OWNERS WITHIN SUCH DISTRICT THE QUESTION OF LEVYING ASSESSMENTS FOR SUCH DISTRICT, COMMENCING FISCAL YEAR 2021/2022 WHEREAS, the City Council has, by previous resolution, initiated proceedings for the renewal of the President’s Plaza III Property and Business Improvement District (hereafter referred to as “District”), pursuant to the provisions of the Property and Business Improvement District Law of 1994, part 7 of division 18 of the Streets and Highways Code of California (hereafter referred to as the “Act”), and did order the preparation of a Management District Plan (hereafter referred to as the “Plan”) and an Engineer’s Report (“hereafter referred to as the “Report”) for the District; and WHEREAS, the Plan and Report, which are combined, and which address the renewal of the District and the establishment of assessments, has been prepared and filed with the city clerk, presented to the City Council, and incorporated herein by reference, in accordance with the provisions of the Act and California Constitution article XIII D; and WHEREAS, the City Council has, by previous resolution, approved the Plan and Report, which contains a full-and-detailed description of improvements and services, the boundaries of the District, the estimated costs of improvements and services, and the proposed assessments upon assessable lots and parcels within the District; NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, THE LEGISLATIVE BODY FOR THE DISTRICT, AS FOLLOWS: Section 1. The above recitals are true and correct. Section 2. Intention to Renew District: The City Council hereby declares its intention to renew the District for a period of five years and to levy and collect assessments within the District, pursuant to the Act, in order to pay for the annual costs of the services and improvements that are described in the Plan and Report. The City Council has determined at this time to call for an assessment ballot proceeding. Section 3. Call for Assessment Ballot Proceeding: The City Council hereby calls for an assessment ballot proceeding on behalf of the District to authorize the levy of assessments for a five-year term on the properties within the District, pursuant to the provisions of California Constitution article XIII D. Section 4. Assessment Ballot Process: The assessment ballot proceeding to authorize the levy of assessments within the District will consist of a ballot and a notice that will be distributed together, by mail, to the property owners of record within the District as of the close of the intent meeting, in accordance with the provisions of RESOLUTION NO. 2021-19 2 of 3 section 4 of California Constitution article XIII D and section 54954.6 of the California Government Code. Each property owner may return the ballot, by mail or in person, to the city clerk not later than the conclusion of the public hearing on July 8, 2021. The public hearing will be scheduled to begin on Thursday, July 8, 2021, at 4:00 p.m., at City Hall (in the City Council Chambers), 73-510 Fred Waring Drive, Palm Desert. At the close of the public hearing, the city clerk will authorize Willdan Financial Services to open and count the ballots in order to determine whether a majority protest exists. The ballots will be weighted according to the proportional financial obligation of the affected property. If, upon the conclusion of the hearing, the ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment, then a majority protest will be deemed to exist. Section 5. District Boundaries: The District will consist of all parcels located in the commercial business area known as the President's Plaza Ill within the City of Palm Desert, the County of Riverside, and the State of California. The territory of the proposed District is generally located south of Palm Desert Drive at Highway 111, north of El Paseo, west of Sage Lane, and east of Old Highway 74. It also includes the Palm Desert Parking Lot, which is a lease parcel to the City of Palm Desert that is located south of Highway 111, east of New Highway 74, and west of Old Highway 74, as described in the Plan and Report, which are incorporated herein by reference. The proposed District will be designated as the “President’s Plaza III Property and Business Improvement District.” Section 6. Description of Services and Improvements: The improvements and activities within the District include maintenance of parking lot landscaped areas, maintenance and operation of parking lot lighting facilities, debris removal, and maintenance of parking lot surface areas. These improvements and activities are more specifically described in the Plan and Report, which is attached hereto and incorporated herein by reference. Section 7. Proposed Assessment Amounts: The proposed assessments and the assessment range formula are shown, in detail, in the Plan and Report. Section 8. Notice of Public Hearing: The City Council hereby declares its intention to conduct a public hearing on the levy of assessments for the District, in accordance with the provisions of section 4 of California Constitution article XIII D and section 54954.6 of the California Government Code. Notice is hereby given that a public hearing on these matters will be scheduled to begin on Thursday, July 8, 2021, at 4:00 p.m., at City Hall (in the Council Chambers), which is located at 73-510 Fred Waring Drive, Palm Desert. At the public hearing, all interested persons will be afforded the opportunity to hear and to be heard. RESOLUTION NO. 2021-19 3 of 3 Section 9. Notice of Right to File Written Protest. Property owners will be provided an assessment ballot and a notice of the public hearing at least 45 days prior to the public hearing. Completed ballots must be received by the city clerk prior to the conclusion of the public hearing, after which they will be opened and counted. In addition to the ballots, District property owners may file a written protest regarding the District renewal with the city clerk prior to the conclusion of the hearing, or, having previously filed a protest, may file a written withdrawal of that protest. A written protest must state all grounds of objection, and a protest by a property owner must contain a description sufficient to identify the property owned by the protesting property owner. Section 10. Direction to City Clerk. The city clerk is hereby authorized and directed to give notice of this public hearing, as provided by law. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council, held on this 13th day of May 2021, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ KATHLEEN KELLY, MAYOR ATTEST: _____________________________________ M. GLORIA SANCHEZ, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA [This page has intentionally been left blank.] City of Palm Desert President’s Plaza III Property and Business Improvement District MANAGEMENT DISTRICT PLAN AND ENGINEER’S REPORT FISCAL YEAR 2021/2022 TO 2025/2026 INTENT MEETING: MAY 13, 2021 PUBLIC HEARING: JULY 8, 2021 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 | 800.755.6864 F 951.587.3510 ***.willdan.com E VICINEEK�2 ISEbOfSl `dEEIDV/WICINEEK�2 ISEb411 p�vuv� �n �uy ���a�uvea �WULVAtlWb41�M yUl� rj1lElUbCE �V�e�u�:� b�saiqsu�, bI9S9 III b�saiqsu�, C!� o� b9�w ps2st.� C!� o�. b91� bavuv� �n auy �iie�uvee �WIJLV/�b1lJbIJ��A 7U1� �j11E14JbGG �V�e����� - b�s2igsu� hlsS_s_ Jll - b�s2igsu� C!f� ol bs�u� ps2s� C!� ol bglu . . ,. �.... .� ....,. .... ............ .... w. ., . ,..........� ...... ......... .....,. , ....... .... 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FL4' s �- �r„�r �k C 8J 888 � L/'/ (�II\1/ b u /_ .. _ ..... ... \ \� _ d1��t��\��i,. �� 2021/2022 President’s Plaza III Property and Business Improvement District Page 1 TABLE OF CONTENTS OVERVIEW .............................................................................................................. 2 Introduction 2 District Renewal Process 3 DESCRIPTION OF THE DISTRICT ................................................................................ 4 District Boundary 4 Improvements and Activities 4 Special Benefits of the Improvements and Activities 5 METHOD OF APPORTIONMENT .................................................................................. 7 Method of Apportionment Rationale 7 Parking Lot Improvements and Services 7 Method of Apportionment Calculations 7 Apportionment of Direct Costs 7 Apportionment of Indirect (Administration/Reserve) Costs 8 Total Annual Assessment 9 Annual Budget Adjustments 9 DESCRIPTION OF BUDGET ITEMS (TABLE 4) ............................................................ 10 Direct Benefit Costs 10 Indirect Benefit Costs (Administration/Reserves) 10 Levy Breakdown 11 District Statistics 11 District Budget 12 APPENDIX A —ASSESSMENT DIAGRAM ................................................................... 14 APPENDIX B —ASSESSMENT ROLL ......................................................................... 16 2021/2022 President’s Plaza III Property and Business Improvement District Page 2 Overview Introduction The City of Palm Desert (“City”) formed and established the President’s Plaza III Property and Business Improvement Assessment District (“District”) beginning in Fiscal Year 2001/2002 to provide improvements and activities that confer special benefits upon real property within the boundaries of the District. The District was established and levied pursuant to Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code (“Act”). Pursuant to the Act, property owners within the District submitted a signed petition requesting formation of the District. The District was successfully formed for a term of five years and a maximum assessment was approved by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIIID (“Proposition 218”). Fiscal Year 2005/2006 was the fifth year of the term of the District. Under the provisions of the Act, the property owners within the District may renew the District for a maximum term of ten (10) years. Pursuant to the Code, and the provision of the California Constitution, the property owners within the District approved the continuation of the District and assessment for an additional five years and on June 14th, 2016 the City authorized the funding for improvements and activities authorized within the District for a period of five years (Fiscal Years 2016/2017 through 2020/2021). It is the City’s desire to renew the District for an additional five-year period starting Fiscal Year 2021/2022 through Fiscal Year 2025/2026. This combined Management District Plan and Engineer’s Report hereinafter referred to as “Plan” or “Report”, is presented for consideration by the property owners within the area known and commonly referred to as President’s Plaza, to seek their support for the organization of a business improvement district in accordance with the provisions of the Property and Business Improvement District Law of 1994, Streets and Highways Code Section 36600 et. seq., hereinafter referred to as the “Act.” This is the Management District Plan required by Section 36622 of the Act, for the proposed renewal of the President’s Plaza III Property and Business Improvement District hereinafter referred to as “District” or “PBID III”, to fund services and activities to improve and convey special benefits to properties located within the boundaries of the District. This Report describes the District, improvements and activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five-year duration of the renewed District. The proposed assessments are based on the estimated cost to provide the improvements, activities, and operations that provide a direct and special benefit to properties within the District. The costs of improvements, activities, and operations include all expenditures, deficits, surpluses, revenues, and reserves. 2021/2022 President’s Plaza III Property and Business Improvement District Page 3 The word “property,” for the purposes of this Plan, refers to real property situated within the District, and identified as an individual property or parcel assigned its own Assessor’s Parcel Number (APN) by the County of Riverside Assessor’s Office. The County of Riverside Auditor/Controller uses APNs to identify on the tax roll parcels and properties assessed for taxes, special assessments, and fees and charges. District Renewal Process A written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied was submitted to the Palm Desert City Council to initiate renewal proceedings. The City Council initiated proceedings for the renewal of the District by adopting a resolution expressing its intention to renew the District. The resolution of intention referenced the Engineer’s Report and the Management District Plan and noticed the time and place of a public hearing on the renewal of the District and levy of assessments. The City Council is required to hold a public hearing not less than forty-five (45) days after adopting the resolution of intention. Property Owners are sent notice of a public hearing on the matter of the renewal, pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (property owner protest ballots) are mailed to each property owner at least 45 days prior to the public hearing pursuant to Article XIIID of the California Constitution. At the public hearing the City Council provides the public and property owners with an opportunity to provide oral protests and written protests prior to the adoption of the Engineer’s Report and the Management District Plan. Pursuant to the California Constitution Article XIIID, the City Clerk or its designated alternate tabulates the property owner assessment ballots received from property owners and determines that majority protest did or did not exist. If the property owners approve the renewal of the District and imposition of the assessments, the City Council can appoint an owner’s association for the District. The owner’s association can make yearly recommendations to the City Council on the expenditures of revenue derived from the levy of assessments and on the classification of properties as applicable. The owner’s association can prepare a report each fiscal year for which assessments are to be levied and collected. Said annual report shall be filed with the City Clerk and shall contain: any proposed changes to the district boundary; the improvements and activities to be provided that year; the estimated costs for that year; the method of assessment; the amount of any surplus or deficit; and contributions from other sources. The City Council may approve the report as submitted or as modified. 2021/2022 President’s Plaza III Property and Business Improvement District Page 4 Description of the District District Boundary The District consists of all parcels located in the commercial business area known as the President’s Plaza III within the City of Palm Desert, County of Riverside. The District includes sixteen (16) assessed commercial parcels. The boundary of the District and the parcels therein are generally located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Old Highway 74 and includes the Palm Desert Parking Lot – a lease parcel to the City of Palm Desert located South of Highway 111; East of New Highway 74; and West of Old Highway 74. Improvements and Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the President’s Plaza III, the Agency provided funds for the renovation and capital improvement of the parking lot and landscaped areas related to this commercial business center. In conjunction with this renovation, President’s Plaza III Property and Business Improvement District was initially formed in 2001 and every subsequent five-year period after the date of formation to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. It has been determined that all the properties within the District receive special and distinct benefits from the improvements and activities to be funded through the assessments. The improvements include the necessary activities, services, operations, administration, and maintenance required to keep the improvements in satisfactory condition including all necessary labor, material, and equipment. The services may include, but are not limited to, regular maintenance, repair, removal or replacement of all or any part of the improvements including removal of trimmings, rubbish, debris and other solid waste; and, providing for the growth, health and beauty of landscaping and lighting including cultivation, trimming, spraying, fertilizing or treating for disease or damage as well as supplying necessary irrigation and electrical energy. The specific improvements and activities include:  Parking lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities;  Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy; and,  Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot. 2021/2022 President’s Plaza III Property and Business Improvement District Page 5 The costs associated with the improvements are equitably spread among the benefiting parcels within the District utilizing the method of apportionment described in the Method of Apportionment section of this Report. The total funds collected shall be dispersed and used for the services and operations provided to the District. Special Benefits of the Improvements and Activities Assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. Specifically, lighting and landscaping amenities within the parking lot, and regular sweeping of the parking lot. The special benefits of lighting (parking lot lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress and egress to property; 5. Reduced vandalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property, which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, 2021/2022 President’s Plaza III Property and Business Improvement District Page 6 7. The special enhancement to the value of property, which results from the above benefits. Parking lot sweeping is an essential and necessary activity for all properties— particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service are: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property, which results from the above benefits. The on-going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. 2021/2022 President’s Plaza III Property and Business Improvement District Page 7 Method of Apportionment Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method, which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President’s Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel’s benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel’s benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method of Apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel’s lot size in square feet. In addition to a parcel’s Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel’s Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) are based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot within President’s Plaza III. The Total Direct Costs are divided by the sum of the square footage of all parcels within the District in order to establish a rate per parcel square foot. This rate multiplied by each parcel’s square footage equals the parcel’s proportionate share of the parking lot maintenance costs (rounded to the nearest even penny). The rate provided in Table 1 is for Fiscal Year 2021/2022 only. Please refer to the District Budget (Table 4) for future assessment rates. Total Direct Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct Cost Assessment Component 2021/2022 President’s Plaza III Property and Business Improvement District Page 8 Table 1: Direct Cost Proposed Assessment and Rate Proposed Direct Costs for FY 2021-2022 Proposed Rate (per Square Foot) for FY 2021-2022 Fifth Fiscal Year Maximum $31,783 $0.0700 Apportionment of Indirect (Administration/Reserve) Costs To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel will be assessed for administrative and reserve costs (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. The Reserve Fund Collection is proposed to be slightly under twenty-three percent (22.65%) of the annual Total Direct Costs of the District. Similar to the method of apportionment for Total Direct Costs, the District’s indirect costs are apportioned to each parcel based on each parcel’s lot size in square feet. The rate provided in Table 2 is for Fiscal Year 2021/2022 only. Please refer to the District Budget (Table 4) for future assessment rates. Total Indirect Cost / Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Indirect Cost Assessment Component Table 2: Indirect Cost Proposed Assessment and Rate Proposed Indirect Costs for FY 2021-2022 Proposed Rate (per Square Foot) for FY 2021-2022 Fifth Fiscal Year Maximum $15,091 $0.0332 2021/2022 President’s Plaza III Property and Business Improvement District Page 9 Total Annual Assessment Each parcel’s Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in Fiscal Year 2021/2022. The rate provided in Table 3 is for Fiscal Year 2021/2022 only. Please refer to the District Budget (Table 4) for future assessment rates. Direct Cost Rate + Indirect Cost Rate = Total Rate per Square Foot Total Rate x Parcel Square Footage = Total Parcel Assessment Table 3: Total Cost Proposed Assessment and Rate Fifth Fiscal Year Proposed Direct Costs for FY 2021-2022 Proposed Rate (per Square Foot) for FY 2021-2022 Direct Costs Maximum $31,783 $0.0700 Indirect Costs $15,091 $0.0332 Total Costs Maximum $46,874 $0.1032 Annual Budget Adjustments For the five years of the term of the PBID III renewal, annual assessments may be adjusted by the President’s Plaza III PBID owners’ association up to three percent (3%) per year. Actual annual adjustments may range from zero percent (0%) to three percent (3%). Adjustments may differ from year to year depending on the service needs identified by the owners’ association. In any event, assessments will not exceed the levels illustrated by the District Budget (Table 4). Any annual budget surplus or deficit will be accrued into the following year’s PBID budget. Assessments will be set accordingly, within the constraints of the annual adjustment, to adjust for surpluses or deficits that are carried forward. 2021/2022 President’s Plaza III Property and Business Improvement District Page 10 Description of Budget Items (Table 4) Direct Benefit Costs Sweeping Services: Weekly cleaning of the parking lot and gutters using a contracted, mechanized service. Landscape Contract Maintenance: Includes all regularly scheduled labor, material (e.g. pipe, fertilizer, insecticides), and equipment required to properly maintain and ensure the satisfactory condition of all landscaping, irrigation and drainage systems, and appurtenant facilities. All landscaping improvements within the District are contracted for maintenance and service on a regular basis. The frequency and specific maintenance and operations required within the District will be determined by City staff. Lighting Repair and Maintenance: This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which could include replacing lighting materials or renovation of lighting systems. Landscape Repair and Maintenance: This item includes repairs that are not normally included in the yearly maintenance contract costs. This may include repair of damaged amenities due to vandalism and storms, as well as planned upgrades, which could include replacing plant materials or renovation of irrigation systems. Landscape Utilities -Water: Utility cost to furnish water for required landscape irrigation. Street Lighting Utilities - Electric: The furnishing of electricity required for the operation and maintenance of the lighting facilities. The City contracts for the furnishing of its electricity for street lighting, which includes normal maintenance and bulb replacement. This cost does not include repairs or replacement of damaged facilities due to vandalism, accidents or storms. Landscape Utilities - Electric: Utility cost for furnishing of electricity required for the operation of the irrigation systems and landscape maintenance. Indirect Benefit Costs (Administration/Reserves) District Administration: The cost to all departments and staff of the City, for providing the coordination of District services, operations and maintenance of the District, response to public concerns and education, and procedures associated with the levy and collection of assessments. This cost also includes contracting with professionals to provide additional administrative, legal, or engineering services specific to the District. 2021/2022 President’s Plaza III Property and Business Improvement District Page 11 County Administration Fee: This is the actual cost to the District for the County to collect District assessments on the property tax bills. This charge is based on a flat rate per fund number. County Per Parcel Fee: This is the cost to the District for the County to collect assessments on the property tax bills. This charge is on a per assessment basis, at $0.45 per assessment, and is in addition to the County Administration Fee. Operating Reserve Fund Collection: The Operating Reserve Fund provides for collection of funds to operate the District, for each fiscal year, from the time period of July 1 through January when the County provides the City with the first installment of assessments collected from the property tax bills. The Operating Reserve Fund eliminates the need for the City to transfer funds from non-District accounts to pay for District charges during the first half of each fiscal year. The Operating Reserve Fund may also be used to offset any unforeseen costs such as repairs, legal fees, revenue deficits, or increased costs due to inflation or contractual agreements that are greater than originally planned. The Operating Reserve Fund Collection amount is slightly more than three percent (3.15%) of the annual Total Direct Costs of the District in Fiscal Year 2021/2022. Parking Lot Maintenance Fund Collection: The Parking Lot Maintenance Fund provides funds for the sealing and re-striping of the parking lot after the fourth year of the renewal term of the District. The parking lot’s total surface area is approximately 184,000 square feet. During December 2005, the District’s cost of sealing and re-striping the parking lot was $27,200 (15.5 cents per square foot multiplied by 175,520 square feet of surface area) and the cost of repairs within the parking lot was $24,300 (for 8,500 square feet of surface area); for a total cost of $51,500. The cost of sealing and re-striping the parking lot’s total surface area of 184,000 square feet would have been approximately $28,520 (15.5 cents per square foot multiplied by 184,000 square feet of surface area). Insurance: This line item supports insurance costs for the operation of the District. Levy Breakdown Total District Costs: This is the sum total of all budgeted Direct and Indirect costs. District Statistics Total Parcels: The total number of parcels within the District. Total Parcels to Levy: The total number of parcels within the District that will be assessed. Non-assessed lots or parcels include easements, common areas, and parcels within the boundaries of the District that currently do not benefit from the improvements and which are not included in the Total Parcels to Levy. Total Parcels Square Footage: This is the sum total of the assessed parcels’ square footage applied to each assessed parcel within the District. 2021/2022 President’s Plaza III Property and Business Improvement District Page 12 Levy Rate per Direct Costs per Square Foot: This amount represents the Rate for Direct Costs being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Direct Costs is the result of dividing the estimated Total Direct Costs for that year by the sum of the District’s Total Parcels Square Footage. The rate is calculated to four decimal places. Levy Rate per Indirect Costs per Square Foot: This amount represents the Rate for Indirect Costs being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Indirect Costs is the result of dividing the estimated Total Indirect Costs for that year by the sum of the District’s Total Parcels Square Footage. The rate is calculated to four decimal places. Total Levy Rate per Square Foot: This amount represents the Rate being applied to each assessed parcel’s individual lot square footage. The Levy Rate per Square Foot is the result of dividing the estimated Total District Costs for that year by the sum of the District’s Total Parcel Square Footage. The rate is calculated to four decimal places. District Budget The District Budget shown on the following table (Table 4), lists the estimated costs of providing the various improvements and services within the District. The costs and the resulting rates for Fiscal Year 2021/2022 through Fiscal Year 2025/2026 are based on the estimated costs to provide the improvements and services for each year. Direct Costs, District and County Administration Costs, and Insurance Costs are adjusted for the three percent (3%) inflation factor. The owners’ association, appointed by the City Council, will annually review the District Costs and make recommendations for any changes or adjustments to the budget. Changes to the budget could result in changes to the annual assessment, but the resulting total assessment may not exceed the maximum rates established in this Report without first obtaining property owner approval through assessment ballots. 2021/2022 President’s Plaza III Property and Business Improvement District Page 13 2021/2022 President’s Plaza III Property and Business Improvement District Page 14 Appendix A —Assessment Diagram The Assessment Diagram for the District is on the following page and is inclusive of all parcels identified on the County of Riverside Assessor’s Parcel Maps as Book 627, Page 192. The Assessment Diagram will be kept on file with the City Clerk of the City of Palm Desert. 2021/2022 President’s Plaza III Property and Business Improvement District Page 15 2021/2022 President’s Plaza III Property and Business Improvement District Page 16 Appendix B —Assessment Roll Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the County Assessor’s Map for the year in which this Report is prepared. The Assessment Roll, which includes a listing of parcels assessed within this District, along with their assessment amounts, is shown in Table 5. President’s Plaza III PBID Formation Commencing Fiscal Year 2021/2022 Property Owner Petition The undersigned persons, owners of real property within the boundaries of the proposed President’s Plaza Property and Business Improvement District, hereby petition the City Council of the City of Palm Desert for the organization of said District in accordance with the provisions of the Property and Business Improvement District Law of 1994, an Act to add Part 7 (commencing with Section 36600) to Division 18 of the Streets and Highways Code and Article XIII D of the California Constitution. In support of this petition, petitioners state:  The name of the district shall remain President’s Plaza Property and Business Improvement District (PBID).  The Management District Plan is on file with the Office of the City Clerk of the City of Palm Desert and a copy may be requested from the Office of the City Clerk.  The improvements and activities to be provided by the President’s Plaza PBID are not intended to duplicate or supplant the services, facilities and improvements provided by the City of Palm Desert within the District boundaries. The President’s Plaza PBID is being established to provide enhanced or otherwise unavailable services, facilities and improvements within the boundaries of said PBID, which include: • Parking lot landscaped areas: including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities; • Parking lot lighting facilities: including, but not limited to, bulbs, fixtures, poles, wiring, and electrical energy; and, • Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot. Petitioners respectfully request that the City Council of the City of Palm Desert initiate proceedings to renew the President’s Plaza PBID by adoption of a Resolution of Intention to renew the district. Petitioners further state that this petition is signed by persons owning real property, or otherwise authorized to sign for owners of real property within the boundaries of the proposed district. Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name Signatures The Name of the District Shall Be: President’s Plaza Property and Business Improvement District Property held in the name of Legal Owner, if different than above Property address Mailing Address Assessor parcel number(s) Authorized signature Printed name [This page has intentionally been left blank.] 2021/2022 President’s Plaza III Property and Business Improvement District