HomeMy WebLinkAboutFY 20-21 Res 2020-66 and 2020-67 Presidents Plaza III PBID Order LevySTAFF REPORT
CITY OF PALM DESERT
FINANCE DEPARTMENT
MEETING DATE: July 09, 2020
PREPARED BY: Tom Metz, Deputy City Treasurer
REQUEST: Approve the Management District Plan and order the levy and
collection of assessments within the President's Plaza III
Property and Business Improvement District for fiscal year
2020/2021
Recommendation
Waive further reading and adopt:
1. Resolution No. 2020-_66 , approving the Management District Plan for
the President's Plaza III Property and Business Improvement District for
fiscal year 2020/2021.
2. Resolution No. 2020-_67 , ordering the levy and collection of annual
assessments within the President's Plaza III Property and Business
Improvement District for fiscal year 2020/2021.
Strateqic Plan Obiective
Not applicable.
Background Analvsis
The President's Plaza III Property and Business Improvement District ("PBID III") was
originally formed in fiscal year 2001/2002 for a five-year term. A majority of property
owners subsequently voted to renew PBID III for three additional five-year terms, the
current one being from fiscal years 2016/2017 to 2020/2021. PBID III will be entering into
the final year of that term.
PBID III includes properties that are located south of Palm Desert Drive at Highway 111,
and north of El Paseo, between new Highway 74 and old Highway 74.
The street boundaries of PBID 111 are shown on a map on page 15 of the 202012021
Management District Plan/Engineer's Annual Levy Report.
July 09, 2020 — Staff Report
Approval of PBID III Annual Levy Report and Levy and Collection of Assessments
Page 2 of 2
The City of Palm Desert ("City") collects annual assessments from PBID III property
owners to pay for landscape maintenance, street sweeping, and parking lot lighting within
the common parking lot areas.
The only modification of the PBID III budget will be the allowed three percent (3%) cost -
of -living adjustments that were built into the current five-year plan which the property
owners approved.
The attached resolutions will approve next fiscal year's Management District Plan, and
allow the City to levy and collect the associated annual assessments within PBID III.
Staff recommends approval of both resolutions.
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 any financial
burden.
LEGAL REVIEW
N/A
DEPT. REVIEW
Robert W. Hargreaves Tom Garcia
City Attorney Director of Public Works
City Manager Lauri Aylaian: 2d
FINANCIAL
REVIEW
ASSISTANT
CITY MANAGER
.Andy Firetine
Janet M. Moore Andy Firestine
Director of Finance Assistant City Manager
ATTACHMENTS: . Resolution No. 2020- 66
Resolution No. 2020- 67
2020/2021 Management District Plan/Engineer's Annual Levy
Report (Final)
1
RESOLUTION NO. 2020-66
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, ORDERING THE LEVY AND COLLECTION OF
ASSESSMENTS FOR THE PRESIDENT’S PLAZA III PROPERTY AND
BUSINESS IMPROVEMENT ASSESSMENT DISTRICT FOR FISCAL
YEAR 2020/2021
The City Council of the City of Palm Desert, California (hereafter referred to as the “City
Council”) hereby finds, determines, resolves, and orders as follows:
WHEREAS, on July 14, 2016, the City Council called and duly held a public
hearing and property owner protest ballot proceedings for the President’s Plaza III
Property and Business Improvement Assessment District (hereafter referred to as the
“District”), pursuant to the provisions of 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 “Code”) and California Constitution article XIIID, for the purpose of
presenting to the qualified property owners within the District the annual levy of
assessments and a maximum annual assessment over a five-year period, beginning July
1, 2016 and ending June 30, 2021, for the costs and expenses associated with the
maintenance and operation of landscaping, lighting, refuse collection, and all appurtenant
facilities related thereto; and,
WHEREAS, the landowners of record within the District, as of the close of the
public hearing held on July 16, 2016, did cast their ballots resulting in the approval of the
District formation and annual levy of assessments related thereto; and,
WHEREAS, the City Council, pursuant to the Code, did by previous resolutions
form the District, approve a Management District Plan in connection with the formation of
the District, and appoint an Advisory Board that shall cause to be prepared an annual
report regarding the District for the City Council’s approval; and,
WHEREAS, the Advisory Board has held a meeting to review and approve the
proposed budget for fiscal year 2020/2021, prepared a Report in connection with the
District for fiscal year 2020/2021, and filed the Report with the city clerk of the City of Palm
Desert. The city clerk, in turn, has presented the Report entitled, “President’s Plaza III
Property and Business Improvement District, 2020/2021 Management District
Plan/Engineer’s Annual Levy Report” to the City Council; and,
WHEREAS, The City Council has carefully examined and reviewed the Report, as
presented, and, by previous resolution, has approved the Report.
RESOLUTION NO. 2020-66
2
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. The City Council desires to levy and collect the annual assessment for
President’s Plaza III Property and Business Improvement Assessment
District for fiscal year 2020/2021, pursuant to the provisions of the Code.
Section 3. Based upon its review of the Management District Plan, a copy of which
has been presented to the City Council and filed with the city clerk, the
City Council hereby finds and determines that:
A. The territory of land within the District will receive special benefits
from the operation, maintenance, and servicing of the improvements
and appurtenant facilities located within the boundaries of the District.
B. The District includes all of the lands so benefited; and the net
amount to be assessed upon the lands within the District, in
accordance with the proposed budget for the fiscal year,
apportioned by a formula and method which fairly distributes
the net amount among all eligible parcels, in proportion to the
special benefits to be received by each parcel from the
improvements and services.
C. The assessments so described in the Management District
Plan are consistent with the assessments so approved by the
property owners within the District.
Section 4. The Report and the assessments, as presented to the City Council and on
file in the office of the city clerk, are hereby confirmed as filed.
Section 5. The City Council hereby orders the improvements to be made, and the levy
and collection of annual assessments to pay for those improvements to be
presented to the County auditor/controller of Riverside County (hereafter
referred to as the “County”) for fiscal year 2020/2021. The County
auditor/controller shall enter on the County tax roll opposite each parcel of
land the amount of levy, and such levies shall be collected at the same time
and in the same manner as the County taxes are collected. After collection
by the County, the net amount of the levy shall be paid to the city treasurer.
RESOLUTION NO. 2020-66
3
Section 6. The city treasurer shall deposit all money representing assessments
collected by the County for the District to the credit of a fund for the
President’s Plaza III Property and Business Improvement Assessment
District, and this money shall be expended only for the improvements
described in the Management District Plan.
Section 7. The adoption of this resolution constitutes the District levy for the fiscal year
commencing July 1, 2020 and ending June 30, 2021.
Section 8. The city clerk is hereby authorized and directed to file the levy with the
county auditor upon adoption of this resolution.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City
Council, on the 9th day of July, 2020, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
________________________________
GINA NESTANDE, MAYOR
ATTEST:
_______________________________________
GRACE L. ROCHA, ACTING CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
1
RESOLUTION NO. 2020-67
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, APPROVING THE MANAGEMENT DISTRICT
PLAN FOR THE PRESIDENT’S PLAZA III PROPERTY AND BUSINESS
IMPROVEMENT ASSESSMENT DISTRICT FOR FISCAL YEAR
2020/2021
The City Council of the City of Palm Desert (hereafter referred to as the “City Council”)
does resolve as follows:
WHEREAS, in fiscal year 2016/2017, the City Council, pursuant to the provisions
of 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 “Code”), and in
accordance with the provisions of California Constitution article XIIID, conducted
proceedings for the formation of the President’s Plaza III Property and Business
Improvement District (hereafter referred to as the “District”), and the levy of annual
assessments connected therewith; and,
WHEREAS, on July 16, 2016, the City Council held a full and fair public hearing
regarding the formation of the District, the establishment of annual assessments, and the
maximum assessments required to pay the maintenance and services of landscaping,
lighting, refuse collection, and all appurtenant facilities and operations related thereto, for a
five-year period, beginning July 1, 2016, and ending June 30, 2021, pursuant to the Code;
and,
WHEREAS, upon conclusion of the public hearing of July 16, 2016, the City
Council tabulated the property owner assessment protest ballots returned and, by
resolution, confirmed that majority protest did not exist and, by resolution, approved the
Management District Plan, appointed an Advisory Board for the District, ordered the
formation of the District, and ordered the levy and collection of the first annual
assessments; and,
WHEREAS, pursuant to the Code, the City Council appointed the President’s Plaza
III Committee as the Advisory Board for the District, and this Advisory Board shall cause to
be prepared an annual Management District Plan (hereafter referred to as the “Report”) for
each fiscal year for which assessments are to be levied and collected. This 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, the estimated costs and method of
assessment, the amount of any surplus or deficit, and contributions from other sources;
and,
RESOLUTION NO. 2020-67
2
WHEREAS, pursuant to the Code, the Advisory Board has caused to be prepared
a Report in connection with the District, describing the proposed improvements, services,
expenditures, and assessments to be levied for fiscal year 2020/2021. This Report,
entitled “Management District Plan for the President’s Plaza III Property and Business
Improvement District for Fiscal Year 2020/2021”, has been filed with the city clerk of the
City of Palm Desert, and the city clerk has presented it to the City Council; and,
WHEREAS, The City Council has carefully examined and reviewed the Report, as
presented, and is satisfied with each and all of the items and documents as set forth
therein, and finds that the levy of assessments has been spread in accordance with the
special benefits received from the improvements, operation, maintenance, and services to
be performed, as set forth in the Report; and,
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. The Management District Plan, as presented, consists of the following:
A. A description of the District boundaries and all properties benefiting
from the improvements and services.
B. A description of improvements and services to be provided by the
District.
C. The annual budget (estimates of costs and expenses of services,
operations, and maintenance).
D. The District roll containing the levy of assessments for each
assessor parcel within the District.
Section 3. The Report, as presented, is hereby approved and is ordered to be filed in
the office of the city clerk as a permanent record, and to remain open to
public inspection.
Section 4. That the city clerk shall certify the passage and adoption of this resolution,
and the minutes of this meeting shall so reflect the presentation and final
approval of the Report, and the appointment of the District Advisory Board.
RESOLUTION NO. 2020-67
3
PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City
Council, on the 9th day of July, 2020, by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAINED:
_______________________________
GINA NESTANDE, MAYOR
ATTEST:
__________________________________
GRACE L. ROCHA, ACTING CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
13
PALM DESERT
CALIFORNIA
City of Palm Desert
President's Plaza III Property and
Business Improvement District
2020/2021 MANAGEMENT DISTRICT PLAN/
ENGINEER'S ANNUAL LEVY REPORT
PUBLIC HEARING: JUNE 255 2020
W"W I LLDAN
ENGINEER'S REPORT AFFIDAVIT
City of Palm Desert
President' Plaza III
Property and Business Improvement District
City of Palm Desert
Riverside County. State of California
This Report describes the District and defines improvements, budget and method
of assessment apportionment, and the parcels to be levied for Fiscal Year
2020/2021 as they existed at the time of the passage of the Resolution of
Intention_ Reference is hereby made to the Riverside County Assessor's maps
for a detailed description of the lines and dimensions of parcels within the
District. The undersigned respectfully submits the enclosed Report as directed by
the City Council.
Dated this 8 `n day of May
Willdan Financial Services
Assessment Engineer
On Behalf of the City of Palm Desert
By:
Josephine Moses, Senior Project Manager
District Administration Services
By: /
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Richard Kopecky
R. C. E. # 16742
2020.
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W'WILLDAN
TABLE OF CONTENTS
OVERVIEW.......................................................................................... 2
Introduction
District Renewal Process
I
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 IN 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
2020/2021 President's Plaza III Property and Business Improvement District Page 1
*P'WILLDAN
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
141h, 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).
This Management District Plan ("Plan") 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.
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 formation proceedings. The City Council initiated
2020/2021 President's Plaza III Property and Business Improvement District Page 2
W WILLDAN
proceedings for the formation of the District by adopting a resolution expressing its
intention to form 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 formation of the District and levy of assessments.
Within not less than forty-five (45) days and not more than ninety (90) days of
adopting the resolution of intention, the City Council held a public hearing on the
matter of formation, and caused notice to the property owners pursuant to Section
54954.6 of the Government Code. Public notices and assessment ballots (property
owner protest ballots) were 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 provided 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 X111D, the City Clerk or its designated alternate
tabulated property owner assessment ballots received from property owners and
determined that majority protest did not exist.
Pursuant to the Act, the City Council appointed an Owner's Association
("Association") for the District. This Association shall 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. This
Association shall cause to be prepared 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.
2020/2021 President's Plaza III Property and Business Improvement District Page 3
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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 formed in
2001 to provide and ensure the continued operation and maintenance of the
improvements after the renovations had been completed. In 2006, the property
owners renewed the District for another five (5) year term. In 2010, the property
owners renewed the District for an additional five (5) year term. In 2016, the
property owners renewed the District for another additional five (5) year term;
therefore, the assessments generated will continue this maintenance. 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,
2020/2021 President's Plaza III Property and Business Improvement District Page 4
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• Debris removal: including, but not limited to, regular mechanical
sweeping of the parking lot.
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;
5. 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;
2020/2021 President's Plaza III Property and Business Improvement District Page 5
*f'WILLDAN
5. A positive representation of the businesses within the District;
6. Centralized locations for refuse collection facilities; and,
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.
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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 Ill. 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 2020/2021 only.
Please refer to the District Budqet (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
2020/2021 President's Plaza III Property and Business Improvement District Page 7
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Table 1: Direct Cost Proposed Assessment and Rate
Fifth Fiscal Year Maximum $ 30,857 $ 0.0680
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-four percent (23.33%) 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 2020/2021 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
Fifth Fiscal Year Maximum $ 15,069 $ 0.0332
2020/2021 President's Plaza III Property and Business Improvement District Page 8
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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 2020/2021. The rate provided in Table 3 is for Fiscal Year 2020/2021
oniv. Please refer to the District Budqet (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
Direct Costs Maximum $ 30,857 $ 0.0680
Indirect Costs $ 15,069 $ 0.0332
Total Costs Maximum $ 45,926 $ 0.1012
Annual Budget Adjustments
For the five years of the term of the PBID 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.
2020/2021 President's Plaza III Property and Business Improvement District Page 9
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Description of Budget Items In 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.
2020/2021 President's Plaza III Property and Business Improvement District Page 10
W'WILLDAN
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 $0.35 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 less than three and a half percent
(3.24%) of the annual Total Direct Costs of the District in Fiscal Year 2020/2021.
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 its 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.
2020/2021 President's Plaza III Property and Business Improvement District Page 11
W WILLDAN
Levy Rafe 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 2016/2017 through Fiscal Year
2020/2021 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.
2020/2021 President's Plaza III Property and Business Improvement District Page 12
nirert er sts
Sweeping Services
Landscape Contract Maintenance
Lighting Repair & Maintenance
Landscape Repair & Maintenance
Landscape Utilities - Water
Street Lighting Utilities - Electric
Landscape Utilities - Electric
Subtotal Direct Costs
Indirect Costs
District Administration
County Administration Fee
County Per Parcel Fee
Operating Reserve Fund Collection
Parking Lot Maintenance Fund Collection
Insurance
Subtotal Indirect Costs
Levv Breakdown
Total District Costs
Balance to Levy
District statistics
Total Parcels
Total Parcels To Levy
Total Parcels Square Footage
Levy Rate per Direct Costs per Sq Ft
Levy Rate per Indirect Costs per Sq Ft
Total Levy Rate per Square Foot
Operating Reserve Fend Balance
Previous Balance
Ending Balance
Parking Lot Maintenance Fund Balance
Previous Balance
Ending Balance
11V W I LLDAN
$ 6,050
$
5,376
$ 5,537
$
5,103
$ 5,874
$ 6,050
6,807
6,048
6,229
6,416
6,608
6,807
1,815
1,613
1,661
1.711
1,762
1,815
5,294
4,704
4,845
4,990
5,140
5,294
3,025
2,688
2,768
2,852
2,937
3,025
7,109
6,316
6,506
6,701
6,902
7,109
756
672
692
713
734
756
$ 30,857
$
27,416
$ 28,238
$
29,086
$ 29,958
$ 30,857
$ 5,294
$
4,704
$ 4,845
$
4.990
$ 5,140
$ 5,294
265
235
242
250
257
265
41
41
41
41
41
41
1,000
1,000
1,000
1,000
1,000
1,000
6,200
6,200
6.200
6,200
6,200
6,200
2,269
2,016
2,076
2,139
2.203
2,269
$ 15,069
$
14,196
$ 14,404
$
14,619
$ 14,841
$ 15,069
$ 45.926
$
41,612
S 42.643
$
43,705
$ 44.799
$ 45.926
$ 45,926
$
41,612
$ 42,643
$
43,705
$ 44,799
$ 45,926
16
16
16
16
16
16
16
16
16
16
16
16
453,956
453,956
453,956
453,956
453,956
453,956
$ 0.0680
$
0.0604
$ 0.0622
$
0.0640
S 0.0660
$ 0.0680
$ 0.0332
$
0.0312
$ 0.0318
$
0.0322
$ 0.0326
$ 0.0332
$ 0.1012
$
0.0916
$ 0.0940
$
0.0962
$ 0.0986
$ 0.1012
$ 12,066
$
8,066
$ 9,066
$
10,066
$ 11,066
$ 12,066
$ 13.066,
$ 9,066
. 10.066
$ 11,066
S 12.066
$ 13.066
66 742
$ 41,942
9 48 142
$
54 342
S 60,542
66 742
72 942
$
48 142
$ 54.342
$
60 542.
$ 66 742
72 942
Maximum annual assessments for direct costs, district and county administration, and insurance are adjusted by 3%from the previous Fiscal Year for Fiscal Years
2016-2017 through 2020-2021. The PBID Advisory Board will determine the amount of any actual increase for those years which may not exceed 3% per year.
I'l FY 2020-2021 Actual and Maximum Proposed Assessments are the same_
Sources: City of Palm Desert: Willdan Financial Services
2020/2021 President's Plaza III Property and Business Improvement District Page 13
W'W I LLDAN
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.
2020/2021 President's Plaza III Property and Business Improvement District Page 14
W W I LLDAN
President Plaza III Property and Business Improvement District
Assessment Diagram
Desed Dr N
s
State Rt a 111
el Paseo
1 '1
State Rte 111
Palm Desert Dr
I F
0 4
President Pfaza 111`PBtfl_Boundary
2020/2021 President's Plaza III Property and Business Improvement District Page 15
V/W I LLDAN
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.
Table 5: Assessment Roll
1
627-192-006
73175 HIGHWAY 111
11,000.00
$1,112,82
$1,112.84
2
627-192-009
73211 HIGHWAY 111
10,933,00
1,106,06
1,106.06
3
627-192-014
73100 EL PASEO
33,940.00
3,433,60
3,433.62
4
627-192-020
73160 EL PASEO
11,980,00
1,211,98
1,211.98
5
627-192-021
73170 EL PASEO
11,958,00
1,209,74
1,209.76
6
627-192-022
73180 EL PASEO
11,936 00
1,207,52
1,207.53
7
627-192-023
73190 EL PASEO ST
11,814 00
1,195,18
1,195.19
8
627-192-024
73200 EL PASEO
35,741.00
3,615.80
3,615,82
9
627-192-033
73241 HIGHWAY 111
43,560.00
4,406.84
4,406-85
10
627-192-034
73101 HIGHWAY 111
45,738.00
4,627,18
4,627,19
11
627-192-035
73125 HIGHWAY 111
46,173,00
4,671,18
4,67120
12
627-192-036
73040 EL PASEO
17,424.00
1,762.72
1,762.74
13
627-192-037
73080 EL PASEO
34,848,00
3,525.46
3,525.48
14
627-192-038
73155 HIGHWAY 111
44,431,00
4,494.96
4,494,96
15
627-192-039
73185 HIGHWAY 111
21,932.00
2,218.80
2,218.80
16
627-192-040
73130 EL PASEO
60,548.00
6,125A6
6,125,47
Total 453ihF-95^6_^ $45�92 $45.92548
Actual R Maximum Proposed Assessments may not match due to rounding
Sources: Riverside County Secured Roll; Wilidan Financial Services
2020/2021 President's Plaza III Property and Business Improvement District Page 16
CITY OF PALM DESERT
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a virtual public hearing will be held before the Palm
Desert City Council to consider the levy and collection of the annual assessment for
President’s Plaza III Property and Business Improvement Assessment District for fiscal
year 2020/2021, pursuant to the provisions of the Code.
NOTICE IS FURTHER GIVEN that on Thursday, July 9, 2020, at 4:00 p.m. or as soon
thereafter as practical, the City will hold a Virtual Public Hearing, in order to receive public
comments. The hearing will be conducted in accordance with the City’s emergency
protocols and options for remote participation will be listed on the Posted Agenda for the
meeting at: https://www.cityofpalmdesert.org/our-city/mayor-and-city-council-/city-
council-meeting-information-center. Any citizen unable to attend may submit written
comments to the City Clerk prior to and/or during the Public Hearing.
Said virtual regular meeting will be held by the City Council on Thursday, July 9, 2020 at
4:00 p.m., or as soon thereafter as possible, in accordance with the City’s emergency
protocols for social distancing. Options for remote participation will be listed on the Posted
Agenda for the meeting at: https://www.cityofpalmdesert.org/our-city/mayor-and-city-
council-/city-council-meeting-information-center
If you challenge the proposed action in Court, you may be limited to raising only those
issues you or someone else raised at the hearing described in this notice, as in written
compliance delivered to the Cultural Resources Preservation Committee, or prior to, the
public hearing.
Dated this 18th day of June 2020
GRACE L. ROCHA, ACTING CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
(760) 346-0611