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HomeMy WebLinkAboutRes 2016-45 to 2016-47 FY 2016-17 Presidents Plaza III PBIDResolution No. 45 Resolution No. 46 Resolution No. 47 CITY OF PALM DESERT OFFICE OF THE CITY TREASURER STAFF REPORT REQUEST: APPROVE THE INITIATION OF PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT. SUBMITTED BY: Thomas J. Metz, Deputy City Treasurer CONTRACTOR: Willdan Financial Services DATE: May 26, 2016 CONTENTS: Resolution No. 2016- 4s Resolution No. 2016- 46 Resolution No. 2016- 47 Management District Plan and Preliminary Engineer's Report Recommendation Waive further reading and adopt: 1. Resolution No. 2016-As , initiates proceedings for the formation of the President's Plaza III Property and Business Improvement District; and the levy and collection of assessments for Fiscal Year 2016/2017, pursuant to the provisions of Part 7 of Division 18 of the California Streets and Hichways Code; 2. Resolution No. 2016-_A6_, describes proposed improvements and services; approves the Management District Plan; and provides preliminary approval to the Engineer's Report for Fiscal Year 2016/2017, regarding the proposed formation/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 Hiahways Code; and 3. Resolution No. 2016-4_, declares the City's intention to form the President's Plaza III Property and Business Improvement District; to levy and collect assessments therein; and to hold an assessment ballot proceeding so that qualified property owners within the district can vote on the levying assessments for the district, commencing Fiscal Year 2016/2017. Strateqic Plan Obiective Not Applicable. Staff Report Approve Initiation of Proceedings — Formation of Presidents' Plaza III Property & BID May 26, 2016 Page 2of2 Background The President's Plaza III Property and Business Improvement District ("PPIII") includes properties on the south side of Highway 111 and on the north side of El Paseo, between Highway 74 and Sage Lane. The City of Palm Desert ("City") collects annual assessments from PPIII to pay for services such as landscape maintenance; street sweeping; and parking lot lighting within the common parking lot areas. PPIII's most recent five-year term will expire in June 2016. PPIII property owners, representing more than 50 percent of the proposed assessment to be levied, have petitioned the Palm Desert City Council ("City Council") to initiate renewal proceedings. The City Council has responded by adopting a resolution confirming its intent to renew PPIII. The City Council has held a public hearing on the issue of renewal, and the City Clerk has determined that majority protests do not exist. Staff recommends that the City Council approve the attached resolutions to initiate the re- formation process for PPIII. If the resolutions are approved, then a public hearing will be scheduled for July 14, to open and count the ballots received. 2016 Fiscal Analvsis The assessment and collection of the full levy amount finances ongoing maintenance costs for PPIII and associated staff costs, thereby relieving the City of any financial burden. Submitted By: TE" homas J. Metz Deputy City Treasurer Approved By: sti, McCarthy Interi n City Manager tj m Attachments (as noted) Reviewed By: Lanet"Finance of & City Treasurer H:\1WORD 2007\L&L DISTRICTS\PRELIMINARY INTENT MEETING\FY 2017 PP III INTENT MEETING.doc RESOLUTION NO. 2016-415 RESOLUTION NO.2016- 45 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, INITIATING PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, AND THE LEVY AND COLLECTION OF ASSESSMENTS, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2016/2017 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 formation(re- establishment) 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 the levy and collection of assessments by the County of Riverside for the City of Palm Desert to pay for the Improvements and Activities as described in the Engineer's Report and the Management District Plan; and, WHEREAS, Pursuant to the Act, a written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied, has been presented to the City Council; and, WHEREAS, The City Council has retained Willdan Financial Services for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file a Management District Plan with the City Clerk in accordance with the Act; and in accordance with the requirements of the California Constitution, Article XIIID to prepare and file an Engineer's Report with the City Clerk; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: 1. The above recitals are true and correct. 2. The City Council hereby orders Willdan Financial Services to prepare and file with the City Clerk the Engineer's Report and the Management District Plan concerning the formation/renewal and establishment of assessments for the District in accordance with the Act. 3. Proposed improvements: The improvements and activities within the District include: maintenance of parking lot landscaped areas, maintenance and operation of parking lot lighting facilities, and debris removal; and are more specifically described in the RESOLUTION NO. 2016-45 Engineer's Report and the Management Plan attached hereto and incorporated herein by reference. 4. Boundaries and Designation: The District consists of all parcels located in a commercial business area within the City of Palm Desert located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Highway 74 Pines to Palms Highway. The territory is within the City of Palm Desert, within the County of Riverside, State of California. The proposed district is designated as: "President's Plaza III Property and Business Improvement District." The foregoing Resolution was passed, approved and adopted by the City Council of the City of Palm Desert on the 26th day of May, 2016, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, MAYOR CITY OF PALM DESERT ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP N RESOLUTION NO. 2016-. 46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DESCRIBING PROPOSED IMPROVEMENTS AND SERVICES AND APPROVING THE MANAGEMENT DISTRICT PLAN AND PRELIMINARILY APPROVING THE ENGINEER'S REPORT, REGARDING THE PROPOSED FORMATION/RENEWAL OF THE PRESIDENT'S PLAZA III BUSINESS IMPROVEMENT DISTRICT, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE, FOR FISCAL YEAR 2016/2017 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 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"), did by previous Resolution, initiate proceedings for the formation/renewal of the President's Plaza III Property and Business Improvement District (hereafter referred to as the "District"), pursuant to the provisions of the Act, and did order the preparation of a Management District Plan and an Engineer's Report for said District, and WHEREAS, The City Council has retained Willdan Financial Services, for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file a Management District Plan with the City Clerk in accordance with the Act; and an Engineer's Report in accordance with the requirements of the California Constitution, Articles XIIIC and XIIID, and WHEREAS, Willdan Financial Services has presented to the City Council the Management District Plan, which is incorporated herein by reference, and WHEREAS, The City Council has carefully examined and reviewed the Management District Plan and Engineer's Report as presented, and is satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the assessments have been spread in accordance with the special benefits received from the improvements, operation, maintenance and services to be performed within the District, as set forth; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: 1. The above recitals are true and correct. 2. That the Management District Plan as presented, consists of the following: A. A Description of Improvements and services to be provided by the District RESOLUTION NO. 2Q16-46 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; and, D. A Boundary Map for the boundaries of the District. 3. That the "Engineer's 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. The foregoing Resolution was passed, approved and adopted by the City Council of the City of Palm Desert on the 26th day of May, 2016, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, MAYOR CITY OF PALM DESERT ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP kjl RESOLUTION NO. 2016-47 RESOLUTION NO. 2016-47 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING THE CITY'S INTENTION TO FORM THE PRESIDENT'S PLAZA III 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 SUCH DISTRICT THE QUESTION OF LEVYING ASSESSMENTS FOR SUCH DISTRICT, COMMENCING FISCAL YEAR 2016/2017 WHEREAS, The City Council 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"), did by previous Resolution, initiate proceedings for the formation of the President's Plaza III Property and Business Improvement District (hereafter referred to as the "District"), pursuant to the provisions of the Act, and did order the preparation of a Engineer's Report and Management District Plan for said District, WHEREAS, The City Council has retained Willdan Financial Services for the purpose of assisting with the formation/renewal of the District and establishment of the assessments, and to prepare and file an Engineer's Report and Management District Plan with the City Clerk in accordance with the Act; and in accordance with the requirements of the California Constitution, Article XIIID, and WHEREAS, Willdan Financial Services has presented to the City Council the Engineer's Report and the Management District Plan, which are incorporated herein by reference, and WHEREAS, The City Council has, by previous resolution, approved the Engineer's Report and the Management District Plan, which contain a full and detailed description of the 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, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE AS FOLLOWS: 1. The above recitals are true and correct. 2. The City Council hereby declares its intention to form/renew the District for a period of five years and to levy and collect assessments within the District, pursuant to the Act, to pay the annual costs of the services and improvements, as described in the Engineer's Report and the Management District Plan. The City Council has determined at this time to call for an assessment ballot proceeding. RESOLUTION NO. 2016-47 3. Callinq an assessment ballot proceedinq: Pursuant to California Constitution Article XIIID, an assessment ballot proceeding is hereby called on behalf of the District on the matter of establishing assessments for a five-year term on the properties within the District. 4. The assessment ballot proceeding for the District on the matter of authorizing the levy of the assessments, pursuant to California Constitution, Article XIIID, Section 4 consists of a ballot, included with the mailed notice required by Government Code Section 54954.6, distributed by mail, to the property owners of record within the District as of the close of the Intent Meeting. 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 16, 2016. The Public Hearing is scheduled to begin on July 16, 2016 at 4:00 p.m., at the City Council Chambers, 73-510 Fred Waring Drive, Palm Desert. At the close of the Public Hearing, the City shall open and tabulate the ballots to determine if a majority protest exits. The ballots shall be weighted according to the proportional financial obligation of the affected property. A majority protest exists if, upon the conclusion of the hearing, ballots submitted in opposition to the assessment exceed the ballots submitted in favor of the assessment. 5. District Boundaries: The territory of the District is located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Sage Lane; and East of Highway 74 Pines to Palms Highway as described in the Engineer's Report and the Management District Plan, which are incorporated herein by reference. The District is designated as "President's Plaza III Property and Business Improvement District." 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, and debris removal; and are more specifically described in the Engineer's Report and the Management Plan attached hereto and incorporated herein by reference. 7. Proposed Assessment Amounts: The proposed assessments are detailed in the Engineer's Report and the Management District Plan, which also detail the assessment range formula. 8. Notice of Public Hearinq(s): The City Council hereby declares its intention to conduct a Public Hearing concerning the levy of assessments for the District in accordance with Government Code, Section 54954.6 and California Constitution, Article XIIID, Section 4(e). Notice is hereby given that a Public Hearing on these matters will be held by the City Council on July 14, 2016 at 4:00 P.M., in the City Council Chambers, located at 73-510 Fred Waring Drive, Palm Desert. 9. Notice. Property owners will be provided an assessment ballot and 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 2 RESOLUTION NO. 20166-47 they will be opened and tabulated. In addition to the ballots, District property owners may file a written protest regarding the District formation 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 shall state all grounds of objection and a protest by a property owner shall contain a description sufficient to identify the property owned by such property owner. At the public hearing, all interested persons shall be afforded the opportunity to hear and be heard. 10. The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. The foregoing Resolution was passed and adopted by the City Council of the City of Palm Desert on the 26th day of May, 2016, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ROBERT A. SPIEGEL, MAYOR CITY OF PALM DESERT ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED AS TO FORM: ROBERT W. HARGREAVES, CITY ATTORNEY BEST, BEST & KRIEGER, LLP 3 27368 Via Industria Suite 200 Temecula, CA 92590 T 951.587.3500 1 800.755.6864 F 951.587.3510 www.wilidan.com/financial WILLDAN Finandid Services 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 proposed to be levied commencing in Fiscal Year 2016/2017 for a period of five fiscal years 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 day of 12016. Willdan Financial Services Assessment Engineer On Behalf of the City of Palm Desert By: Stacee Reynolds, Senior Project Manager By: Richard Kopecky R. C. E. # 16742 ViWILLDAN I Financial Services TABLE OF CONTENTS OVERVIEW.............................................................................................................. 1 Introduction 1 District Renewal Process 1 DESCRIPTION OF THE DISTRICT................................................................................ 3 District Boundary 3 Improvements and Activities 3 Special Benefits of the Improvements and Activities 4 METHOD OF APPORTIONMENT..................................................................................6 Method of Apportionment Rationale 6 Parking Lot Improvements and Services 6 Method of Apportionment Calculations 6 Apportionment of Direct Costs 6 Apportionment of Indirect (Administration/Reserve) Costs 7 DESCRIPTION OF BUDGET ITEMS..............................................................................9 Direct Benefit Costs 9 Indirect Benefit Costs 10 Levy Breakdown 10 District Statistics 10 District Budget 11 APPENDIX A —ASSESSMENT DIAGRAM ................................................................. A-1 President Plaza III Property and Business Improvement District A-2 APPENDIX B — PARCEL INFORMATION AND ASSESSMENT ROLL ................................ B-1 �WILLDAN Rnancid Services 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, and renewed in Fiscal Year 2011/2012, 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 (the "Act"). Pursuant to the Act, property owners within the District submitted a signed petition requesting formation of the District. The District was successfully renewed 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 2015/2016 is the last 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. The renewal process is the same as that of the original formation. Therefore, the preparation of this updated Management District Plan is the first step in satisfying these requirements. Pursuant to the Act, the City proposes to annually levy and collect assessments to provide funding for improvements and activities authorized within the District for a period of five (5) 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 renewal proceedings. The City Council President's Plaza N PBID Renewal Page 1 eFWILLDAN I Financial Services 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 formation of the District and levy of assessments. 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 renewal, 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 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 tabulated property owner assessment ballots received from property owners and determined that majority protest did not exist. Pursuant to the Act, the City Council shall appoint an Owner's Association ("Association") for the District. This Association shall make 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. President's Plaza 111 PB1D Renewal Page 2 */WILLDAN I Finencw serer 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 — 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, and renewed in 2011, to provide and ensure the continued operation and maintenance of the improvements after the renovations had been completed. Should the District be renewed by the property owners for another five (5) year term, the assessments generated will continue this maintenance. Project under construction as of May 2016: entire parking lot being crack -sealed, seal coated, and re -striped. 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 all necessary activities, services, operation, 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, President's Plaza Ill PB1D Renewal Page 3 WILLDAN I finmciel Servbw • Debris removal: including, but not limited to, regular mechanical sweeping of the parking lot. The costs associated with the improvements are equitably spread among all 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 only the services and operations provided to the District. Special Benefits of the Improvements and Activities All 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; President's Plaza 111 PSID Renewal Page 4 WILLDAN I FinancW Services 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 parking lot areas provide no measurable general benefit to other properties outside the boundaries of the District, or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as providing 100% special benefit to parcels within the District. President's Plaza 111 PBlD Renewal Page 5 /WIU_DAN I Hnancisi Services 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 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. These Total Direct Costs, divided by the sum of the square footage of all parcels within the District, establishes 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 2016/2017 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 Table 1: Direct Cost Proposed Assessment and Rate President's Plaza /it PB/D Renewal Page 6 iA/MILLDAN Financial services 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. 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 2016/2017 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 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 the first fiscal year of this renewal (FY 2016/2017). The rate provided in Table 3 is for Fiscal Year 2016/2017 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 Direct Costs Maximum Indirect Costs Total Costs Maximum $27,416 $14,196 $41,612 $0.0604 $0.0313 $0.0917 President's Plaza 111 PBID Renewal Page 7 WILLDAN I Financial Soviow Annual Budget Adjustments For the five-year term of this 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. President's Plaza M PBID Renewal Page 8 *kt/WILLDAN I Finenclei services DESCRIPTION OF BUDGET ITEMS Direct Benefit Costs Sweeping Services — Weekly cleaning of the parking lots and gutters using a contracted, mechanized service. Landscape Maintenance Contract — 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 operations required within the District is 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 Repairs 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. Planned upgrades may also be included. These upgrades may include, but are not limited to, replacing plant materials or renovation of irrigation systems. Landscape Utilities - Water— Utility cost to furnish water required for 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. President's Plaza 111 PB/D Renewal Page 9 Indirect Benefit Costs 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. 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 $0.41 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 from the time period of July 1 (beginning of the Fiscal Year) 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 the 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. Parking Lot Maintenance Fund — The Parking Lot Maintenance Fund provides funds for the sealing and re -striping of the parking lot. The parking lot's total surface area is 183,500 square feet. The cost of sealing the asphalt was $25,650. The average cost per square foot for the maintenance work was $0.14. 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 Number of Parcels — The total number of parcels within the District. Total Parcels Levied — 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. President's Plaza 111 PBID Renewal Page 10 I WI LLDAN I FinenciW Services Total Parcels Square Footage — This is the sum total of the assessed parcels' square footage applied to each assessed parcel within the District. Levy Rate per Direct Cost 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 for Indirect Cost 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 page (Table 4) lists the estimated costs of providing the various improvements and services. The costs and the resulting rate for each Fiscal Year is based on the estimated costs to provide the improvements and services that year. The projected annual costs anticipated over the five-year duration of the District assessments have been calculated based on an annual inflationary factor of three percent (3%) from the first fiscal year. However, this inflation factor does not mean the assessments will increase annually by three percent (3%). 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. President's Plaza M PBID Renewal Page 11 WILLDAN I FinancialSarviow Direct Costs Sweeping Services $5,376 $5,376 $5,537 $5,703 $5,874 $6,050 Landscape Contract Maintenance 6,048 6,048 6,229 6,416 6,608 6,807 Lighting Repair & Maintenance 1,613 1,613 1,661 1,711 1,762 1,815 Landscape Repair & Maintenance 4,704 4,704 4,845 4,990 5,140 5,294 Landscape Utilities - Water 2,688 2,688 2,768 2,852 2,937 3,025 Street Lighting Utilities - Electric 6,316 6,316 6,506 6,701 6,902 7,109 Landscape Utilities - Electric 672 672 692 713 734 756 Subtotal Direct Costs $27,417 $27,417 $28,238 $29,086 $29,957 $30,856 indirect Costs District Administration $4,704 $4,704 $4,845 $4,990 $5,140 $5,294 County Administration Fee 235 235 242 250 257 265 County Per Parcel Fee 41 41 41 41 41 41 Operating Reserve Fund Collection 1,000 1,000 1,000 1,000 1,000 1,000 Parking Lot Maintenance Fund 6,200 6,200 6,200 6,200 6,200 6,200 Collection Insurance 2,016 2,016 2,076 2,139 2,203 2,269 Subtotal Indirect Costs $14,196 $14,196 $14,404 $14,620 $14,841 $15,069 Levv Breakdown Total District Costs $41,613 $41,613 $42,642 $43,706 $44,798 $45,925 Balance to Levy $41,628 $41,628 $42,672 $43,716 $44,805 $45,940 District Statistics Total Parcels 16 16 16 16 16 16 Total Parcels To Levy 16 16 16 16 16 16 Total Parcels Square Footage 453,956 453,956 453,956 453,956 453,956 453,956 Levy Rate per Direct Costs per Sq Ft $0.0604 $0.0604 $0.0622 $0.0641 $0.0660 $0.0680 Levy Rate per Indirect Costs per Sq Ft $0.0313 $0.0313 $0.0318 $0.0322 $0.0327 $0.0332 Total Levy Rate per Square Foot $0.0917 $0.0917 $0.0940 $0.0963 $0.0987 $0.1012 OAeratino Reserve Fund Balance Previous Balance $8,066 $8,066 $9,066 $10,066 $11,066 $12,066 Ending Balance $9,066 $9,066 $10,066 $11,066 $12,066 $13,066 Parkino Lot Maintenance Fund Balance Previous Balance $41,942 $41,942 $48,142 $54,342 $60,542 $66,742 Ending Balance $48,142 $48,142 $54,342 $60,542 $66,742 $72,942 Maximum annual assessment~ for direct costs, district and county administration, and insurance arc adjusted be 3% from the previous Fiscal Year for Fiscal Years 201 G-2017 through 2020-2021. The PBl D Advisory Board will determine the amount of any actual increase for those years which mac not exceed 3% per year. Note:'I'hc difference between the'l'otal District Costs and the Balance to l c%-v is due to rounding the rate to four digits, which causes a slight variance. (1) 1'Y 2016-2017 Actual and Maximum Proposed Assessments are the same. Sources: Citv of Palm Desert: Willdan Financial Services President's Plaza 111 PBID Renewal Page 12 WILLDAN I g AnencW Services APPENDIX A ASSESSMENT DIAGRAM The Assessment Diagram for the District is shown in reduced format 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. President's Plaza Ill PBID Renewal Page A-1 WILLDAN I FIf1NClil services APPENDIX B - PARCEL INFORMATION AND ASSESSMENT ROLL The combined Parcel Information and Assessment Roll are shown in Table 5 on the following page. Table includes Assessor Parcel Number, Owner Name, Situs Address, Actual Assessment and Maximum Assessment along with Area Front Footage which is used in calculating each parcel's proportionate share of all District Costs. President's Plaza III PBID Renewal Page B-1 O O O r� w M v w to t� 00 w N w Lo r` hU� M Cn Cn In ch v v T O ti Cn m T N r m M N N W W V M r- V'T V I` LO V T N O O T O to O O ti O O M O O t-- T to N O O T O O O O N CA T N L T O O In CO T � M T T - eM cM '-t T M V N LO a 64 0 N tUA . U� N Nt O r�: tD CN N CEO O O eN- IM C co N N CD M� to N O O T O O O O N O T N Cn T O O to CO T T M T T T T M M V V' T CM 'IT N Ln T 6113� v fA O O O O O O O O O O Cl O O O O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0� O M O Cl CO CO q' T O CO M N' CO T NCO co O M IT W in M T V O M t- N'T M M (A O cl CA CA (A CA CC) t� Cn f` T st 000 ,;t CA T O M T T T T 0 M LO W r- V T O T T M T T T T M� V V T M N CO T T T T T T T }} 0 0 0 0 0 0}}} 0 0}} 0 �3Wwwwww U)U) (1) _=aaaaaa=_=aa==a 0(D J _J J _1 J J 0(D(D J J 0(D J = 2 W W W W W W= 2= W W== W U') T O O O O O O T T Un O O to to O I,- T O CO t- 00 CA O O N IT 00 Cn 00 co T N T T T T T N N T T O O T T T M m M M M M M M M M m M M M M CM r- I,- t- I` ti I- t` ti r— I- t` rl- t- I\ I` tl Z a' 0 QQ o C 7 J 0 w Z d 0 = 0 Q Z cmi ZZ� m VQf W� ZO sz >> O Z Q Y J Q O > Q m U) Z Z Z J CO � ca 0 0 Z Z W E.m �QWQ0 F-cF--O200 O m Q WZ0 � VQ >.S coF—I~Z�—H mu. JLU CL U) ZUU UU Ec ujww�¢ J J J �Q a Z Z w J J J J O t�i a O Q_ J Q 0 0 Q O E c> >wQa� Qt�c�=wVcn ZZWw a�To WaZOWw ZW Nrcn r 0 �0�vQ--�wr<oDjQQQ CL dCL,Jgaa��a Q Q J M Z J J Z> [L J J Q Q J O O Q0wI---10 WIiQHW WIiaw oT O- c �p �Cpp E 0 O O P N N N N N M M M CM m COm � E CO 9999999999999999 .X N N N N N N N N N N N N N N N N Co U) T T T T T T T T T T T T T T T T od 2 N N N N N N N N N N N N N N N N 7 N O O CO CO CO (O (O CO CO CO CO CD CO CD CO tO _ U N T N M -t to CO I- w m O T N M 'T Cn 0 T T T r T T T O H O F- —U) 3 President's Plaza III PBID Formation Commencing Fiscal Year 2016/2017 Property Owner Petition The undersigned persons, owners of real property within the boundaries of the proposed President's Plaza III Property and Business Improvement District, herebv 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 1III 1) of the California Constitution. In support of this petition, petitioners state: ➢ The name of the proposed district shall be the President's Plaza III 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 III I'BID 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 III I'BID is being established to provide enhanced or otherwise unavailable services, facilities and improvements within the boundaries of said PBID, which include: • :Maintenance of parking lot landscaped areas including, but not limited to, ground cover, shrubs, trees, plants, irrigation and drainage systems and associated appurtenant facilities; Maintenance and operation of 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 Cite Council of the City of Palm Desert initiate proceedings to establish the President's Plaza III PBID by adoption of a Resolution of Intention to form a district. Petitioners further state that this petition is signed by persons owning real property, or otherwise authorized to sign for owners of real proper", within the boundaries of the proposed district. Signatures The Name of the District Shall Be: President's Plaza III 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 tilailing Address ,assessor parcel number(s) Authorized signature Printed name Property held in the name of Legal Owner, if different than above Property address Flailing 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 Flailing Address Assessor parcel number(s) Authorized signature Printed name