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
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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
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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.
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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 — 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,
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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 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;
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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.
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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
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
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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
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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