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HomeMy WebLinkAboutRes 07 through Res 10 Pres Plaza I Bus Improvement District CITY OF PALM DESERT FINANCE DEPARTMENT STAFF REPORT REQUEST: Public Hearing on the formation of President's Plaza I Business Improvement District Date: January 23, 2003 CONTENTS: Resolutions for initiating, describing proposed improvements, engineer's report and declaring the City's intention to form the district. Preliminary Engineer's Report and Management Plan of the District Recommendation: By Minute motion adopt the following resolutions at the conclusion of the public hearing: 1.)Resolution No. 03-7 Resolution of the City Council of The City of Palm Desert, initiating proceedings for the formation of the President's Plaza I 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. 2.)Resolution No. 03-8 Resolution of the City Council of the City of Palm Desert, describing proposed improvements and services and approval of the management district plan regarding the proposed formation of the President's Plaza I 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. 3.)Resolution No. 03-9 Resolution of the City Council of the City of Palm Desert, approving the engineer's report for the President's Plaza I Property and Business Improvement District, Fiscal Year 2003/04. 4.)Resolution No. 03-10 Resolution of the City Council of The City of Palm Desert, declaring the City's intention to form the President's Plaza I Business Improvement District, and the levey and collection of assessments, pursuant to the provisions of Part 7 of Division 18 of the California Streets and Highways Code and call for an assessment Ballot proceeding to submit to the qualified property owners within such district the question of establishing an assessment range formula for such district and levying such assessments for such district. Background: The purpose of this meeting is to receive testimony, notify property owners that we are starting the process for renewing the creation of President's Plaza I district (State law requires the district go back to ballot every five years). In November 2002 petition's were sent out to the current property owners for purpose of forming the district. The City has received over the 50% required petitions of the property owners. In April 10, 2003, staff will receive the ballots from the property owners which will determine whether we levy the district or not. President's Plaza was originally formed as a Landscape and Lighting District over 20 years ago. The improvements and services provided under the district are: centralized refuse containers (41 bins - 2 paid directly by property owner), refuse services, street sweeping services for the parking lot and maintenance of the landscaping and lighting facilities within the parking lot. The refuse services represents around 83% of the total cost of the district. Attached is a copy of the budget(engineer's report) for the overall district along with an individual assessments of each of the property owners. Historically, all developed properties have shared proportionately in the costs associated with refuse collection based on the building square footage of the structures on each parcel. Additionally, the level of service (number of pick-ups and receptacles) has changed very little over the last several years. Although many of the businesses and business types have changed within the District, the total cost of providing this service has remained fairly constant. In November 1996 the voters approved proposition 218 which required the City to review each tax assessment to see that the districts met the requirements of assessing the various property owners. The City contracted with Muni Financial to review each district. President's Plaza was determined that we needed to assess this district under the Business Improvement District rather than a Landscape and Lighting District. City Council directed staff to form the new district with the provision that the district remain the same assessment method. Public Works and Finance recommends the City Council adopt the various resolutions. Submitted By: Od/(41 Paul S. Gibson Ma n Alvarez Director of Finance/City Treasurer Se for Management Analyst CITY COUNCIL ACTION: Approval: APPROVED ,/ DENIED RECEIVED OTHER Carlos Ortega, ter Manager MEETING DATE I - 3 AYES:l �i I-e5/ �� t�5o� K-/I . S ie el NOES: t3 ran t �1 J° 1 ABSENT: N rm e ABSTAIN: Mone VERIFIED BY: Original on File with Citydtlerk's Office RESOLUTION NO. 03-7 INITIATING PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA I 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 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 of President's Plaza I Property and Business Improvement District (hereafter referred to as the "District") pursuant to the provisions of the Prgoe2y and Business Inprozenent District Law cf 1994, Part 7(fDizision 18 f the Stites and Highways Cale grCalifornia (hereafter referred to as the "Act"), formation of a business improvement district, 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 Preliminary 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 MuniFinancial for the purpose of assisting with the formation 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, Articles XIIIC and 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 MuniFinancial to prepare and file with the City Clerk the Preliminary Engineer's Report and the Management District Plan concerning the formation and establishment of assessments for the District in accordance with the Act. 3. Proposed improvements: The improvements within the District are more specifically described in the Preliminary 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 the commercial business area known as the President's Plaza within the City of Palm Desert. 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 I Property and Business Improvement District." 1 RESOLUTION NO. 03-7 The foregoing Resolution was passed and adopted by the City Council of the City of Palm Desert on the 23.1 day of January, 2003, by the following vote: AYES: - NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR City of Palm Desert A'FFEST: RACHELLE D. KLASSEN, CITY CLERK City of Palm Desert 2 • RESOLUTION NO. 03-8 DESCRIBING PROPOSED IMPROVEMENTS AND SERVICES AND APPROVAL OF THE MANAGEMENT DISTRICT PLAN REGARDING THE PROPOSED FORMATION OF THE PRESIDENT'S PLAZA I 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 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 Busim5s Inprrnerrerrt District Law cf 1994, Part 7 f Dizision 18 gF the St,wt and Highzeuy Cale cf California (hereafter referred to as the "Act"), did by previous Resolution, initiate proceedings for the formation of the President's Plaza I 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 for said District,and WHEREAS, The City Council has retained MuniFinancial, for the purpose of assisting with the formation 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,Articles XIIIC and XIIID,and WHEREAS, MuniFinancial 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 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, and consisting of the following: A. A Description of Improvements and services to be provided by the District 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. 1 RESOLUTION NO. 03-8 The foregoing Resolution was passed and adopted by the City Council of the City of Palm Desert on the 23.1 day of January,2003,by the following vote: AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR City of Palm Desert AT1'F ST: RACHELLE D. KLASSEN, CITY CLERK City of Palm Desert 2 RESOLUTION NO. 03-9 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA,TO PRELIMINARILY APPROVE AN ENGINEER'S REPORT FOR THE PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, FISCAL YEAR 2003/04 The City Council of the City of Palm Desert (hereafter referred to as the "City Council") does resolve as follows: WHEREAS,the City Council has retained MuniFinancial for the purpose of assisting with the Annual Levy of the President's Plaza I Property and Business Improvement District (hereafter referred to as the "District"), and to prepare and file an Engineer's Report (hereafter referred to as the "Report") with the City Clerk in accordance with the provisions of Gdifomia Constitutiond Articles XIIIC and XIIID;and, WHEREAS, there has now been presented to this City Council the Preliminary Engineer's Report as required by Crlifarrna Constitutional Ankles XIIIC and XIIID;and, WHEREAS, this City Council has carefully examined and reviewed the Report as presented, and is preliminarily satisfied with the District, each and all of the budget items and documents as set forth therein, and is satisfied that the levy amounts, on a preliminary basis, have been spread in accordance with the special benefit received from the improvements, operation, maintenance and services to be performed within the District,as set forth in said Report;and, NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT,AS FOLLOWS: Section 1 Engineer's Report: The City Council hereby orders MuniFinancial to prepare and file with the City Clerk the Engineer's Report concerning the levy of assessments for the District for the fiscal year commencing July 1, 2003, and ending June 30, 2004, in accordance with Calfomia Constitutional A Hides XIIIC and XIIID. Section 2 Proposed improvements and any substantial changes in existing improvements: The improvements within the District include: landscaping, lighting, and street sweeping. The Engineer's Report describes all the improvements and any substantial changes in existing improvements. Section 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). P ) c) The Method of Apportionment. 1 RESOLUTION NO. 03-9 Section 4 The "Engineer's Report" as presented is hereby approved on a preliminary basis, and ordered to be filed in the Office of the City Clerk as a permanent record and to remain open to public inspection. Section 5 That the City Clerk shall certify to the passage and adoption of this Resolution and the minutes of this meeting shall so reflect the presentation of the Report. Section 6 Intention: The City Council hereby declares its intention to seek the annual levy and collection of assessments within the District pursuant to the Act, over and including the land within the District boundary, and to levy and collect assessments on all such land to pay the annual costs and expenses of the improvements and services described in Section 4 of this Resolution, for Fiscal Year 2003/2004. Section 7 District Boundaries: The boundaries of the District are as described in the Engineer's Report and are consistent with the boundary established and described in the Management District Plan, on file with the City Clerk, and incorporated herein by reference. The District is within the boundaries of the City of Palm Desert, within the County of Riverside, State of California and includes the territory referred to as the "President's Plaza I Property and Business Improvement District". Section 8 Proposed Assessment Amounts: For Fiscal Year 2003/2004, the proposed assessments outlined in the Engineer's Report and Management District Plan will be submitted for approval to the property owners. As such, the proposed assessment is new, and does require property owner approval for an increase in accordance with the requirements of the Gill area Cnstitutiahy Articles XIIIC and XIIID. 2 RESOLUTION NO. 03-9 The foregoing Resolution was passed and adopted by the City Council of the City of Palm Desert on the 23rd day of January,2003,by the following vote: AYES: NOES: ABSENT: ABSTAIN: JEAN M. BENSON, MAYOR City of Palm Desert A'fI't.ST: RACHELLE D. KLASSEN, CITY CLERK City of Palm Desert 3 RESOLUTION NO. 03-10 DECLARING THE CITY'S INTENTION TO FORM THE PRESIDENT'S PLAZA I 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 AND CALL FOR AN ASSESSMENT BALLOT PROCEEDING TO SUBMIT TO THE QUALIFIED PROPERTY OWNERS WITHIN SUCH DISTRICT THE QUESTION OF ESTABLISHING AN ASSESSMENT RANGE FORMULA FOR SUCH DISTRICT AND LEVYING SUCH ASSESSMENTS FOR SUCH DISTRICT WHEREAS, The City Council pursuant to the provisions of the Property and Business Introzeinent- Distlict Lawg'1994,Part 7 q'Dizision 18 gf the Stems and Highzelrys Cale(I Cali ornia(hereafter referred to as the "Act"), did by previous Resolution, initiate proceedings for the formation of the President's Plaza I 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 Preliminary Engineer's Report and Management District Plan for said District, WHEREAS, The City Council has retained MuniFinancial for the purpose of assisting with the formation 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,Articles XIIIC and XIIID,and WHEREAS, MuniFinancial has presented to the City Council the Preliminary 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 Preliminary 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 the District and 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 Preliminary Engineer's Report and the Management District Plan. The City Council has determined at this time to call an assessment ballot proceeding. 3. Calling an assessment ballot proceeding: Pursuant to California Constitution Articles XIIIC and XIIID, an assessment ballot proceeding is hereby called on behalf of the District on the matter of establishing assessments 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 1 RESOLUTION NO. 03-10 property owners of record within the District as of the close of the Intent Meeting. Each property owner's ballot is weighted by the amount of their assessment. 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 April 10, 2003. The Public Hearing is scheduled to begin on Thursday, April 10, 2003, 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 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 boundaries of the District are as described in the Engineer's Report and the Management District Plan, which is incorporated herein by reference. The District is designated as "President's Plaza I Property and Business Improvement District." 6. Description of Services and Improvements: The services and improvements within the District are specifically described in the Engineer's Report and the Management District Plan, which are 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. Public Hearing(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). 9. Notice. The City Council shall cause the resolution of intention to be published in a newspaper of general circulation in the City once, at least ten days before the public meeting and at least ten days before the public hearing.Property owners will be provided a mailed assessment ballot for the proposed assessment. Ballots must be received prior to the conclusion of the Public Hearing, after which they will be tabulated. Any District property owner 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 meeting and the hearing, all interested persons shall be afforded the opportunity to hear and be heard. 10. Notice Of Public Hearing. Notice is hereby given that a Public Hearing on these matters will be held by the City Council on Thursday April 10, 2003 at 4:00 P.M., in the City Council Chambers,located at 73-510 Fred Waring Drive,Palm Desert. 11. The City Clerk is hereby authorized and directed to give notice of such hearing as provided by law. 2 • RESOLUTION NO. 03-10 The foregoing Resolution was passed and adopted by the City Council of the City of Palm Desert on the 23rd dayof January,2003, bythe followingvote: J n'> AYES: NOES: ABSENT: ABSTAIN: 1 JEAN M. BENSON, MAYOR City of Palm Desert A'ITLST: RACHELLE D. KLASSEN, CITY CLERK City of Palm Desert 3 CITY OF PALM DESERT PRELIMINARY ENGINEER'S REPORT PRESIDENT'S PLAZA I PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2003/2004 CITY OF PALM DESERT Ki ': 4— ,4il 4a l Intent Meeting: January 23, 2003 Public Hearing: March 27,2003 eel ta MuniFinancial Corporate Office Regional Offices 27368 Via Industria • Anaheim, CA • Phoenix, CA Suite 110 • Jacksonville,FL • San Diego, CA Temecula, CA 92590 • Lancaster, CA • Seattle,WA Tel: (909) 587-3500 • Oakland, CA • Washington, DC Tel: (800)-755-MUNI Fax: (909) 587-3510 www.muni.com ENGINEER'S REPORT AFFIDAVIT City of Palm Desert President's Plaza I 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 for Fiscal Year 2003/04 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 , 2003. MuniFinancial Assessment Engineer On Behalf of the City of Palm Desert ORIGINAL(Signed) BEING SENT BY MAIL TO THE CITY By Richard Kopecky R. C. E. # 16742 TABLE OF CONTENTS I. OVERVIEW 1 A. Introduction 1 B. Formation 2 II. DESCRIPTION OF THE DISTRICT 3 A. Description of the District Boundary 3 B. Description of the Improvements and Activities 3 C. Special Benefits of the Improvements and Activities 4 III. METHOD OF APPORTIONMENT 6 A. Method of Apportionment Rationale 6 B. Method of Apportionment Calculations 9 IV. DISTRICT BUDGET 13 A. Description of Budget Items 13 B. District Budget 16 APPENDIX A- DISTRICT BOUNDARY MAP 18 APPENDIX B - PARCFL LEVY INFORMATION 21 APPENDIX C-ASSESSMENT ROLL 22 President's Plaza I Property al :siness Improvement District • Preliminary Engi; Report, City of Palm Desert Fiscal Year 2003/04 OVERVIEW A. Introduction The City of Palm Desert ("City") formed and established the President's Plaza I Property and Business Improvement Assessment District ("District") beginning in Fiscal Year 1998/1999 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 Inprozement District Law q 1994, Part 7 cf Dizision 18 f the California Street, and Highzut)s Cale(the Act). Pursuant to the Act, property owners within the District submitted a signed petition requesting formation of the District. The District was successfully formed for a term of five years and a maximum assessment was approved by the property owners through an assessment ballot proceeding, conducted according to provisions of the California Constitution Article XIIID ("Proposition 218"). Fiscal Year 2002/2003 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 years (Fiscal Years 2003/2004 through 2007/2008). This Engineer's Report ("Report") describes the District, improvements and activities, method of apportionment, the proposed assessments for the current fiscal year, and the maximum assessment proposed for the five- year duration of the 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 Report, 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. Mu iFirun ial Page 1 President's Plaza I Property a) rsiness Improvement District • Preliminary Engi; Report, City of Palm Desert Fiscal Year 2003/04 B. Formation A written petition of the property owners within the District, representing more than 50 percent of the proposed assessment to be levied must be submitted to the Palm Desert City Council in order to proceed with the District formation. Because the required signatures have been gathered, the City Council may initiate proceedings for the formation of the District by adopting a resolution expressing its intention to form/renew the District. The resolution of intention will reference this Engineer's Report and the Management District Plan, and will notice the time and place of a public hearing on the re-establishment of the District and levy of assessments. Within 90 days of adopting the resolution of intention, the City Council may hold a public hearing on the matter, and cause notice to the property owners pursuant to Section 54954.6 of the Government Code. Assessment ballots (property owner protest ballots) would be mailed to each property owner at least 45 days prior to the public hearing pursuant to A rtide XIIID f the California Constitution. At the public hearing the City Council may provide 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 Californa Constitution A rtide XIIID, the City Council will tabulate property owner assessment ballots received from property owners to determine whether majority protest exists. This tabulation will occur after the close of the Public Hearing. If the property owners approve the renewal of the District and imposition of new assessments,the City Council will appoint an Advisory Board for the District. This Advisory Board 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. At least one member of the Advisory Board shall be a business licensee within the District who is not a property owner within the District. This Advisory Board 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. MwiFi wzral Page 2 President's Plaza I Property m csiness Improvement District Preliminary Engi; ; Report, City of Palm Desert Fiscal Year 2003/04 II. DESCRIPTION OF THE DISTRICT A. Description of the District Boundary The District consists of all parcels located in the commercial business area known as the President's Plaza within the City of Palm Desert, County of Riverside. The District includes forty-two (42) assessed commercial parcels and three (3) non-assessed parking lot parcels and one (1) non-assessed easement/walkway parcel. The boundary of the proposed District (Presidents Plaza) and the parcels therein are located South of Palm Desert Drive at Highway 111; North of El Paseo; West of Portola Avenue; and East of Larkspur Lane. President's Plaza is commonly referred to as President's Plaza East (The area east of San Luis Rey Avenue); and President's Plaza West (The area west of San Luis Rey Avenue) located within the boundaries of the District. B. Description of the Improvements and Activities In an effort to enhance and improve business opportunities and the appearance of the area known as the President's Plaza, the City 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 I Property and Business Improvement District was formed in 1998 to provide and ensure the continued 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. It has been determined that all the properties within the District and the businesses associated with those properties 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; the cleaning, sandblasting, and repainting of walls and other improvements to remove or cover graffiti; 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,and, • Parking lot lighting facilities — including but not limited to: bulbs,fixtures,poles,wiring, and electrical energy, and, MtariFimnial Page 3 President's Plaza I Property a) !siness Improvement District Preliminary Engi, ; Report, City of Palm Desert Fiscal Year 2003/04 • Debris removal — including but not limited to: solid waste containers, refuse collection services, and 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 Section III of this Report. The total funds collected shall be dispersed and used for only the services and operations provided to the District. C. 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, regular sweeping of the parking lot, and refuse collection services and facilities. 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. The benefits associated with landscaped islands and medians within the parking lot are specifically 1. Improved aesthetic appeal of the parking area and nearby parcels. 2. Improved dust control. 3. Enhanced adaptation of the urban environment within the natural environment. 4. Improved traffic circulation. 5. A positive representation of the businesses within the District. 6. Centrali7ed locations for refuse collection facilities. Debris removal (parking lot sweeping) and refuse collection are essential and necessary activities for all properties—particularly commercial properties. These activities and services are proposed to be funded through the assessments solely for the special benefit of properties and businesses within the District. The benefits associated with these services are: MunuFina ial Page 4 President's Plaza I Property ar siness Improvement District Preliminary Engii Report, City of Palm Desert Fiscal Year 2003/04 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area. 2. Improved dust control. 3. A positive representation of the businesses within the District. 4. A centralized location of refuse collection facilities and availability of the service that would otherwise require individual facilities that could be cost prohibitive and physically restrictive. The on-going operation and maintenance of the landscaping and lighting improvements, sweeping, and refuse collection services provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. 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III ....., IIII iN W i E r- V .4, 4 - 'I i ." -I'st ' • -4 p,44,•_;„ % I.L11'..'4 '.Rt.j il i .??" jr2,1 ,..*:-....,- (.. ...., , , - S ' •;t1, -,-i ' • • i.;"" :•*. e .:1, . s, k-.F=7F-4, ''- '•-i ', , ,,c.-e ,r;k--_...4--•!.,!.. - ---) .., -.-'.',. 'E`:'‘','• '7- ,-,;..-- ---`, '4-.:--1 6 ''';L"?,1-.-f% ,-., r;' r.C., Nli %;•<';4''''. /i./if 1 -• ',1.144::4.%4 4.%C. :. .. .,.. _,I.:,•-14-1--,-----44-4.4 j 1 I V '11‘,N,,.. ''F'.., ,';• ..1',' el NEsnrs KIM. ill MICTECS Pr PUCE CIPOCK EjRa0011 Er0JUST 70 M. ElV.Z.IT.,Snc,Sr c.cis - I g i i a c PA DES EXHIEF El El U El U —1 , --; ---, 7 ..... • 1....., ... Th.Kalell CO,Tre..1•17K11= •-___,____ .I-aas Awn..9Ai•10, A*limn CA 1.1211 (MI 141•-•• I 1 rrY e LMDEFrr CONcE,Frug,STREET DIPROVENENTS poRTOLA AVENUE so TID rr EENG STUDY - FROV AT rTWEISTO SHY!TO IL CORTEZ vAy 1 EX722302 1 President's Plaza I Property al rsiness Improvement District • Preliminary Engi, ; Report, City of Palm Desert Fiscal Year 2003/04 III. METHOD OF APPORTIONMENT A. 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 such parcel from the improvements. Parking Lot Improvements and Services: All assessed parcels within President's Plaza are adjacent to centrali7Pd parking facilities (lots) that provide access, parking, and delivery areas for the businesses and parcels within the District. Each parcel derives a direct and special benefit from the parking lot improvements and the services and activities necessary to maintain the parking lot. The improvements include several landscaped islands and medians, lighting facilities, and sweeping services. Each assessed parcel within the District receives a direct and special benefit from these improvements and shares proportionately in the cost of maintaining the parking lot. The parking area consists of the three parcels that are entirely parking lot area and portions of many of the assessed parcels within the District. The three parcels that are entirely parking lot area parcels (627-212-016; 627-221-011; and 627-222-043), and one easement/walkway parcel (627-222-042) receive no special benefit from the improvements and are not assessed. In determining the method of apportionment for these improvements, each parcel's benefit is based on the parking area adjacent to, and associated with, each 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 front footage adjacent to the parking area. Most parcels within the District front the parking lot on only one side (north or south side of the property). To ensure a reasonable and equitable apportionment of special benefit, parcels that front the parking lot on more than one side (corner properties), are only assessed for their front footage along the north or south side of their property adjacent to the parking lot. Solid Waste (Refuse) Collection Services: Establishing separate refuse receptacles for each parcel or business within President's Plaza, and thereby allowing for separate charges and agreements for this service,is not possible due to limited space and accessibility. Therefore, several common refuse containers have been placed within the parking lot area for use by all the properties and businesses within the District. Hiistorically, all developed properties within President's Plaza have shared proportionately in the costs associated with refuse collection based on the building square footage of the structures on each parcel. MuniFinancral Page 6 President's Plaza I Property al rsiness Improsement District • Preliminary Engi; ; Report, City of Palm Desert Fiscal Year 2003/04 In determining the method of apportionment for refuse collection services,the possibility of factoring in business types as well as building square footage was considered. However, the inclusion of business types in the calculation of an annual assessment poses several problems. First, many of the parcels assessed include multiple business types, which could require a complex calculation to identify potential use of the service. Second, businesses often change from year to year or even month to month making specific business related assessments difficult to track and expensive to administer. Third, establishing a method of apportionment that is business-specific rather than parcel-specific would likely result in annual changes for each parcel's assessment even if the cost of the service was unchanged. Finally, the level of service (number of pick-ups and receptacles) has changed very little over the last several years. Although many of the businesses and business types have changed within the District,the total cost of providing this service has remained fairly constant. In contrast, it is not reasonable to assume that all developed parcels utilize or require the same level of refuse service—typically the larger the building,the greater amount of refuse is generated. Therefore, it has been determined that a fair and reasonable estimate of each parcel's benefit for refuse collection is the approximate building square footage determined for each parcel. The District currently consists of forty-two (42) developed commercial properties and four exempt properties (not assessed). The four exempt properties include three parking lot parcels and one easement/walkway parcel. There are no vacant parcels remaining within with District. (Note: When the District was formed in Fiscal Year 1998/1999, there were forty commercial developed properties and three commercial vacant properties.) As noted previously, due to limited space and accessibility, it is not possible for each parcel or business within President's Plaza to have separate containers or agreements with the waste hauler. However, it is recognized that the baseline level of service (i.e.,number of bins, size of the bins and frequency of service) established for the District may not be adequate or appropriately reflect the needs of changing business within the District. Therefore, the following considerations and criteria shall be followed when the level of service provided requires modifications. 1. If the level of service is reduced, the incremental cost savings (if any) will be reviewed and applied as follows: a. Reserve Fund Account — The City staff and the Advisory Board will evaluate the existing available Reserve Funds to ensure an acceptable amount of money is being retained for normal annual operation of the District. Based on this evaluation, the Advisory Board will modify the annual report (recommendation to the City Council) to apply all or a portion of the cost savings to the Reserve Account. A fully funded Reserve is an amount equal to approximately one half of all annual operating expenses. However, most operating reserves are typically less than 50%, but greater than 25% of all annual operating expenses. b. Reduced Assessments — After reviewing the Reserve Account, any cost savings not applied to the Reserve Account (Reserve Fund Collection) will be passed on to each parcel within the District by reducing their annual assessment for the next fiscal year, in proportion to their estimated benefit (method of apportionment). MraiFim naal Page 7 President's Plaza I Property a; isiness Improvement District • Preliminary Engi ; Report, City of Palm Desert Fis cal Year 2003/04 2. If the level of service is increased, the incremental cost increase (if an)) will be reviewed and applied as follows: a. Increased service District-wide — When the current District was formed, an assessment range formula was approved. This formula provided for anticipated cost of living increases, but also allowed some flexibility for increased costs due to increased levels of service. If an increased level of service is required for the entire District, the increase is reflected in the annual budget. This budget increase will typically facilitate a proportional increase of the annual assessment. If the increased cost results in an assessment rate that exceeds the maximum assessment allowed, then reserve funds will be used to reduce the annual assessment to the maximum assessment allowed. If the reserve fund is not sufficient to cover the cost increase, the City Council may provide a temporary loan to the District or conduct a property owner ballot proceeding for an assessment increase. b. Increased service for one parcel— When the current District was formed, a baseline assessment rate and level of service was established for all properties within the District. As businesses within the District change or continue to grow, these businesses may facilitate a need for an increased level of service, but it is not fair or equitable to spread the cost of this increased service to other properties within the District. Therefore, if a business requires an increased level of service that particular business owner or the property owner must pay the resulting cost increase as a surcharge. Either the City or the property owner may initiate the need for an increased service level. The City Council shall make the final determination as to the appropriate mechanism by which the increased level of service will be provided. The increased level of service may be accomplished by • Increasing the number of pick-ups on the specific bin(s) used by the property or business. • Increasing the size of the specific bin(s) used by the property or business if space permits. • Provide separate bin(s) for the property or business if space and accessibility permits. • Any combination of the above. The costs associated with the increased level of service shall be the obligation of the business and/or property owner provided the additional service. Payment for the increased level of service shall be reviewed by the Advisory Board, which will make a recommendation to the City Council for approval. The additional cost of providing the increased level of service maybe added to the annual assessment for the property as a surcharge (in addition to their annual assessment), upon written petition of the property owner and approval by the City Council (This may require a signed agreement between the property owner and the City of Palm Desert). However, before any action is taken to add a surcharge to the property tax roll as part of the property's annual assessment,the property owner/business shall work with City staff and the Advisory Board to establish the additional service and arrange for direct payment to the service to the waste hauler or the City if at all possible. MwiFinanaal Page 8 President's Plaza I Property aJ tsiness Improvement District Preliminary Engi s Report, City of Palm Desert Fiscal Year 2003/04 B. Method of Apportionment Calculations The apportionment of benefit within the District utilizes a weighting factor known as a Benefit Unit Factor (BUF). Each parcel's BUF represents a percentage of the total BUF applied. Depending on the improvement or activity provided, the BUF assigned to each parcel is based on either the parcel's development (approximate building square footage) or the parcel's area of improvement (front footage to the parking lot). The cost of refuse collection services is apportioned based on each parcel's approximate building square footage. All other improvements and services funded through the District are associated with the parking lot. The total cost of the parking lot improvements and services are apportioned to each parcel based on their front footage to the parking lot. The sum of each parcel's proportionate share of refuse costs and parking lot costs represents the parcel's Total Direct Cost. In addition to a parcel's Total Direct Cost, each parcel is assessed for administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned by a percentage of the parcel's Direct Costs, not to exceed fifteen percent (15%). Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Cost and Total Indirect Costs. Although each parcel's proportional benefit and assessment for each improvement is calculated individually, each parcel's maximum assessment is based on the parcel's combined assessment for all costs and services. The rate applied to any one improvement or service may exceed the maximum rate originally established, provided the parcel's combined assessment does not exceed the combined maximum assessment established for the property (excluding changes in land use or development). The County requires that all annual assessments levied and submitted for collection on tax bills be rounded to the nearest even penny,thus allowing the total assessment to be split into two installments. In order to comply with the County's requirements,the calculation of each assessment component (i.e., refuse costs, parking lot costs and indirect costs) is rounded to the nearest even penny and then added together for the parcel's Total Annual Assessment. The following describes the general method used to arrive at each parcel's proposed assessment. Apportionment of Direct Costs Refuse Collection Assessment: The Total Refuse Cost estimated for refuse services is based on the City's contract with the waste hauler for service to President's Plaza. This Total Refuse Cost divided by the estimated Total Building Square Footage establishes a Rate per square foot. This Rate multiplied by each parcel's estimated building square footage equals the parcel's proportionate share of the refuse service cost (rounded to the nearest even penny). Total Refuse Cost/ Total Building Square Footage =Rate per Square Foot Rate x Parcel Building Square Footage =Refuse Assessment MzariFinaneial Page 9 President's Plaza I Property en tsiness Improvement District • Preliminary Engi ; Report, City of Palm Desert Fiscal Year 2003/04 Note: For purposes of calculating the refuse assessment,the building square footage for each parcel has been rounded to the nearest hundred square feet. Refer to Appendix "B", for building square footage applied. Refuse Adjusted Rate Budget (per Sq. Ft.) First Fiscal Year $ 103,000 $0.357 Second Fiscal Year $ 106,090 $0.367 Third Fiscal Year $ 109,273 $0.378 Fourth Fiscal Year $ 112,551 $0.390 Fifth Fiscal Year $ 115,927 $0.401 Currently forty-two (42) developed commercial properties within the District are assessed for refuse collection services based on approximate building square footage. (Refer to Appendix C for individual Refuse assessments). Four (4) parcels are currently not assessed for refuse collection services: all four (4) are exempt properties (three parking lot parcels 627-212-016, 627-221-011, and 627-222-043 and one easement/walkway parcel 627-222-042. Parking Lot Assessment: The Total Lot Cost estimated for parking lot improvements and services (maintenance) is based on the estimated annual costs to maintain the landscaping, lighting, and mechanical sweeping of the parking lot within President's Plaza. This Total Lot Cost divided by the applied parking lot Total Front Footage, establishes a Rate per front foot. This Rate multiplied by each parcel's applied front footage equals the parcel's proportionate share of the parking lot maintenance costs (rounded to the nearest even penn)). Total Lot Cost/ Total Front Footage =Rate per Front Foot Rate x Parcel Front Footage =Parking Lot Assessment Note:For purposes of calculating the parking lot assessment,each parcel's front footage is based on either the parcel's northern or southern lot line footage rounded to the nearest five feet. Refer to Appendix"B" for front footage applied. MuniFinan ial Page 10 President's Plaza I Property a? siness Improvement District Preliminary Engi, Report, City of Palm Desert Fiscal Year 2003/04 Parking Lot Adjusted Rate Budget (per Fr. Ft.) First Fiscal Year $ 26,600 $7.122 Second Fiscal Year $ 27,398 $7.335 Third Fiscal Year $ 28,220 $7.556 Fourth Fiscal Year $ 29,067 $7.782 Fifth Fiscal Year $ 29,939 $8.016 Currently four (4) parcels are identified as exempt parcels and receive no special benefit from the parking lot improvements and services. These four exempt properties include three parking lot parcels (627-212-016; 627-221-011; and 627-222-043), and one easement/walkway parcel (627-222-042). All other parcels within the District receive direct and special benefits from the parking lot improvements and services. Each of these parcels is assessed proportionately based on their northern or southern front footage adjacent to the parking lot. Apportionment of Indirect Costs To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel is proposed to be assessed for operational costs (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. The annual assessment for Indirect Costs has been established at fifteen percent (15%) of the Total Direct Costs assessed to each parcel. The sum of each parcel's proportionate share of refuse costs and parking lot costs represents the parcel's Direct Cost. This Direct Cost multiplied by fifteen percent (15%) represents each parcel's proportionate share of the Indirect Costs. Parcel's Total Direct Cost X 15% =Indirect Assessment Operation Adjusted Budget g (15% of Direct Cost) First Fiscal Year $ 19,440 Second Fiscal Year $ 20,023 Third Fiscal Year $ 20,624 Fourth Fiscal Year $ 21,243 Fifth Fiscal Year $ 21,880 MurtiFimrxial Page 11 President's Plaza I Property az siness Improvement District Preliminary Engi) Report, City of Palm Desert Fiscal Year 2003/04 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 and the maximum amount projected. The maximum projected amounts were determined by applying an annual inflationary factor of three percent (3%) over the five-year duration of the District based on the first year assessments. MuniF&uncial Page 12 President's Plaza I Property ai rsiness Improvement District Preliminary Engi: ; Report, City of Palm Desert Fiscal Year 2003/04 IV. DISTRICT BUDGET A. Description of Budget Items Direct Benefit Costs 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, but is generally scheduled weekly. Landscape Water—Utility cost to furnish water required landscape irrigation. Landscape Electric—Utility cost for furnishing of electricity required for the operation of the irrigation systems and ornamental lighting. Landscape Repairs—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. Also included may be planned upgrades. These upgrades could include replacing plant materials or renovation of irrigation systems. Lighting—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. Sweeping Services—Weekly cleaning of the parking lot and gutters using a contracted, mechanized service. Solid Waste Removal Services—The furnishing of bins and bi-weekly collection of solid waste. The City contracts with the waste hauler for this service. Only developed properties (with a structure) receive special benefit from this service and are assessed for this service. MaaiEin n ial Page 13 President's Plaza I Property a) rsiness Impro ment District Preliminary Engi ; Report, City of Palm Desert Fis cal Year 2003/04 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 $0.20 per assessment, and is in addition to the County Administration Fee. Miscellaneous Expenses—This is a fund for additional costs related to District administration including required formation,documentation, recordation, and legal fees. Reserve Fund Collection—The 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 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 Reserve Fund may also be used to off-set 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. Levy Breakdown Total Direct and Indirect Costs—This is the sum total of all budgeted Direct and Indirect costs. Anticipated Deficit/Surplus—This item may include anticipated costs of the District that exceed the amount to be collected. This item also reflects beginning balance deficits. When the actual cost and expenditures for the District were greater than the amount budgeted and collected in the prior fiscal year, the District has a Beginning Balance Deficit. This deficit may be the result of unforeseen and extraordinary costs incurred, or assessments actually collected were less than anticipated. When a deficit occurs, the deficit amount may be added to the amount to be collected through the levy for the current fiscal year or recovered through use of the Reserve Fund. When the actual costs and expenditures for the District are less than the amount budgeted and collected in the prior fiscal year, the District has a Beginning Balance Surplus. When a surplus occurs, the amount may be used to reduce assessments or may be added to the Reserve Fund. MumFunthaal Page 14 President's Plaza I Property a; ssiness Improvement District Preliminary Engi; Report, City of Palm Desert Fiscal Year 2003/04 Other Revenue Sources—This item may include additional funds designated for use by the District that are not from District assessments. These funds are added to the District account and may be added to the Reserve Fund or used to reduce assessments, and may be from either non-District or District sources including City General Fund Contributions or interest earnings on the Reserve Fund. Contribution Replenishment—The Contribution Replenishment represents repayments of amounts that had been temporarily advanced by the City to cover costs associated with the improvements. It is anticipated that the City will provide a temporary loan to the District to continue the improvements and services in the first fiscal year until the first assessments are collected. This loan will be repaid in the first fiscal year and is not reflected in the budget. Balance to Levy—This is the total amount to be levied and collected through assessments for the current fiscal year. The Balance to Levy represents the sum of Total Direct Costs, Indirect Costs, Revenue Deficits, Other Revenue Sources, Revenue Surpluses, and Contribution Replenishments. 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. Total Building Square Footage—This is the sum total of the building square footage applied to each parcel within the District. Total Front Footage (parking lot)—This is the sum total of the front footage applied to each parcel within the District. Levy Rate per Square Foot—This amount represents the Rate being applied to each parcel's individual building square footage (calculation of each parcel's proportionate share of refuse collection costs). The Levy Rate per Square Foot is the result of dividing the estimated total refuse cost for that year by the sum of the District's Total Square Footage. The rate is calculated to three decimal places. Levy Rate per Front Foot—This amount represents the Rate being applied to each parcel's individual parking lot front footage (calculation of the parcel's proportionate share of parking lot maintenance costs). The Levy Rate per Front Foot is the result of dividing the estimated total parking lot costs for that year by the sum of the District's Total Front Footage. The rate is calculated to three decimal places. Levy Rate for Indirect Costs—This amount represents the percentage applied to each parcel's Direct Costs to determine the parcel's proportionate share of the amount to be MznnFinanaal Page 15 • President's Plaza I Property m rsiness Improvement District Preliminary Engi ; Report, City of Palm Desert Fiscal Year 2003/04 assessed for administrative expenses and Reserve Fund Collection. A maximum rate of fifteen percent (15%) has been established, but it is anticipated that the maximum amount will be collected each year in order to establish and maintain a reasonable Reserve Fund. B. District Budget The District Budget shown on the following table 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 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. The Advisory Board 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. MzaziFinan ial Page 16 Presidents Plaza I Property a) rsiness Improument District Preliminary Engi; ; Report, City of Palm Desert Fiscal Year 2003/04 District Budget Budget Budget Budget Budget Budget BUDGET ITEMS 2003-04 2004-05 2005-06 2006-07 2007-08 Direct Benefit Costs Landscape Maintenance Costs 5,100 5,253 5,411 5,573 5,740 Landscape Water 4,000 4,120 4,244 4,371 4,502 Landscape Electric - - - - - Landscape Repairs 3,500 3,605 3,713 3,825 3,939 Miscellaneous - - - - - Lighting 10,000 10,300 10,609 10,927 11,255 Sweeping Services 4,000 4,120 4,244 4,371 4,502 Subtotal of Services based on Front Footage 26,600 27,398 28,220 29,067 29,939 Solid Waste Removal Services 103,000 106,090 109,273 112,551 115,927 Subtotal of Services based on Building Square Footage 103,000 106,090 109,273 112,551 115,927 Direct Benefit Subtotal 129,600 133,488 137,493 141,617 145,866 Administration/Reserves District Administration 8,480 8,734 8,996 9,266 9,544 County Administration Fee 120 124 127 131 135 County Per Parcel Fee 8 8 8 8 8 Miscellaneous Expenses 2,800 2,800 2,800 2,800 2,800 Administrative Subtotal 11,408 11,666 11,932 12,206 12,488 Reserve Fund Collection(5%) 6,480 6,674 6,875 7,081 7,293 Indirect Benefit Subtotal 17,888 18,341 18,807 19,287 19,781 Levy Breakdown Total Direct and Indirect Costs 147,488 151,829 156,299 160,904 165,647 Anticipated Deficit or Surplus - - - - - Other Revenue Sources - - - - - BALANCE TO LEVY 147,488 151,829 156,299 160,904 165,647 District Statistics Total Parcels 46 46 46 46 46 Total Parcels To Levy 42 42 42 42 42 Total Building Square Footage 288,900 288,900 288,900 288,900 288,900 Total Front Footage(Parking Lot) 3,735 3,735 3,735 3,735 3,735 Levy Rate per Square Foot $ 0.357 $ 0.367 $ 0.378 $ 0.390 $ 0.401 Levy Rate per Front Foot $ 7.122 $ 7.335 $ 7.556 $ 7.782 $ 8.016 Levy Rate for Admin/Reserves 15% 15% 15% 15% 15% Reserve Information Previous Reserve Balance 25,318 31,798 38,472 45,347 52,428 Ending Reserve Balance 31,798 38,472 45,347 52,428 59,721 MuniEimrnial Page 17 President's Plaza I Property al siness Improvement District Preliminary Engh Report, City of Palm Desert Fis cal Year 2003/04 APPENDIX A- DISTRICT BOUNDARY MAP The boundary map for the District is represented on the following page(s) and is inclusive of all parcels identified on the County of Riverside Assessor's Parcel Map 627-212, 627-221, and 627-222. For the Public Hearing on this District, the Final Engineer's Report will contain an Assessment Diagram. MuniFinancial Page 18 1 nrr 627-2/ T.R.A.ON-03/ MIS MAP IS row as-e-N POR. Sl/2 SEC. 20, T.5S R.6E. AJTTTiY[MT PURPOSES ONLY R 01 C,M 1m L. O Lill*^/ r i 4 = STATE NW /// t —...-- q 1 r---r ,.N.w .. 1 T $--4Pdcc�_-DF'3`Elft D T - } .Iti 'iF� MMbM T Yw.rA/� . l., .r �m a p ...« i .. ��l .. I .. .. 1 .. I ® •/ i N 01® It 1 c 3 I I I 1 *0y J I it aT ! 'so 1 ! ei� l 0 71 , ( T '! i L..,c��z t, T 2 11 Pp.i 11.4 '.�Lr' ' 12 P 22 L:u7�:7"_C47 1 1.x.ect LCa 3` T.isle. til 4, a © I ® ® ® 0; ems`. 1 ] natei rAri®TCM EMI= ,; I rsmm—_ I co NV Lti® i ® i [Y=3-..._ e , . I a. EL' 131SCD e., e. + . Nom nA1 - c 1 �o PA PO, Eini A Lr�7-3. [ ►© p�rdS3�� ALB 21/50-54 /M Pew �� P.M.. ! O En 42/24 Aare ANN 9/25 MINIIIMMININ PM/B. JK-97 Panel Mop 275// MIIIMINIIIM1E111 L 11=1 ow.r RA WI? ImLoLL.MIMMMMIMIIIIAss n COUNTY,RIVERSOE GAUP t/ U A,„ RU6 O 51999 O vl ..NY NN7 � � c N A °� wb � President's Plaza I Property ai rsiness Improvement District Preliminary Engi; ; Report, City of Palm Desert Fiscal Year 2003/04 miP ti r t i �y s-...- - +- O ®j- ; h "WI- -'4-ww-----' a " F r 3 it. " N® y I -• . Cr y® "' bF,i{ — -r..v—v.- .... R " i `moo • t t t r 1: kq it • ©• ® C I 3 `' e In �i1 " ®t i g 4 ...N!!rs.. ---Au: ---- 3s q i w `s 1 M 3Y!l� ww, sy� 1 p II A © N 11 ' _ $ a i ® P a a a II, ® Si 2. M .5 v N " " s J: O ®, >a ' HI FPPEIE11 EorEEFBIIIIIIN4 ® R — ...,S- EtipPEPI filifiriHR Ellie}IpF1111111 OPEPEnORIPP2993 1 urunEA11111I l Jo I 484KIS'WO-1ZZ-LZ9-600Z-ZOOZ' V3'I1:41IMU _.. • MuniFinanriai Page 20 President's Plaza I Property al rsiness Improzement District Preliminary Engi; ; Report, City of Palm Desert Fiscal Year 2003/04 APPENDIX B - PARCEL LEVY INFORMATION The following parcel information including building square footage and front footage is used in calculating each parcel's proportionate share of all District Costs. Assessor's Building Square Footage Front Footage Parcel Number Acres Land Use Net Applied Net Applied 627212002 0.23 Commercial Developed 3885 3,900 50.00 50 627212003 0.89 Commercial Developed 8650 8,700 200.00 200 627212004 0.46 Commercial Developed 8525 8,500 100.00 100 627212005 0.82 Commercial Developed 12132 12,100 171.55 170 627212006 0.25 Commercial Developed 5820 5,800 50.00 50 627212009 0.25 Commercial Developed 8150 8,200 50.00 50 627212010 0.25 Commercial Developed 3210 3,200 50.00 50 627212011 0.25 Commercial Developed 5030 5,000 50.00 50 627212012 0.25 Commercial Developed 2400 2,400 50.00 50 627212014 0.25 Commercial Developed 5000 5,000 50.00 50 627212015 0.92 Commercial Developed 20987 21,000 221.55 220 627212016 0.08 Exempt(Parking Lot) 0 0 0.00 0 627212017 0.50 Commercial Developed 10238 10,200 100.00 100 627221001 0.22 Commercial Developed 4750 4,800 50.00 50 627221002 0.22 Commercial Developed 4750 4,800 50.00 50 627221004 0.75 Commercial Developed 18182 18,200 213.02 215 627221008 0.24 Commercial Developed 5300 5,300 50.00 50 627221009 0.24 Commercial Developed 4563 4,600 50.00 50 627221010 0.68 Commercial Developed 1568 1,600 225.16 225 627221011 0.25 Exempt(Parking Lot) 0 0 0.00 0 627222002 0.22 Commercial Developed 4435 4,400 50.00 50 627222003 0.22 Commercial Developed 3250 3,300 50.00 50 627222004 0.22 Commercial Developed 3250 3,300 50.00 50 627222005 0.21 Commercial Developed 3000 3,000 50.00 50 627222008 0.42 Commercial Developed 6712 6,700 100.00 100 627222014 0.21 Commercial Developed 4692 4,700 50.00 50 627222015 0.21 Commercial Developed 3900 3,900 50.00 50 627222021 0.24 Commercial Developed 3762 3,800 50.00 50 627222024 0.24 Commercial Developed 5050 5,100 50.00 50 627222025 0.24 Commercial Developed 5000 5,000 50.00 50 627222026 0.24 Commercial Developed 5000 5,000 50.00 50 627222027 0.24 Commercial Developed 5150 5,200 50.00 50 627222028 0.23 Commercial Developed 4950 5,000 50.00 50 627222029 0.23 Commercial Developed 4800 4,800 50.00 50 627222030 0.23 Commercial Developed 4950 5,000 50.00 50 627222034 0.42 Commercial Developed 6276 6,300 100.00 100 627222038 0.48 Commercial Developed 9900 9,900 100.00 100 627222041 0.32 Commercial Developed 5925 5,900 75.00 75 627222042 0.11 Exempt(Easement) 0 0 0.00 0 627222043 0.29 Exempt(Parking Lot) 0 0 0.00 0 627222044 0.65 Commercial Developed 13338 13,300 140.63 140 . 627222048 0.42 Commercial Developed 7825 7,800 100.00 100 627222052 1.42 Commercial Developed 11694 11,700 251.69 250 627222053 0.59 Commercial Developed 8238 8,200 151.69 150 627222054 0.28 Commercial Developed 9312 9,300 140.63 140 627222055 0.47 Commercial Developed 15017 15,000 100.00 100 MwtiFimraaal Page 21 President's Plaza I Property al siness Improzrment District Preliminary Engil Report, City of Palm Desert Fiscal Year 2003/04 APPENDIX C - ASSESSMENT ROLL Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the Riverside County Assessor's Map for the year in which this Report is prepared. A listing of parcels assessed within this District, along with the assessment amounts for the first year of the District (FY 2003/04) and the last year of the District (FY 2007/08),is included on the following page. Mun Finanaal Page 22 • President's Plaza I Property an 'siness Improvement District Preliminary Engi? Report, City of Palm Desert Fiscal Year 2003/04 Assessor's Building Lot FY 2003/04 Assessment FY 2007/08 Assessment Parcel Square Front Refuse Lot Indirect Refuse Lot Indirect Number Acres Footage Footage Charge Charge Charge Total Charge Charge Charge Total 627212002 0.23 3,900 50 $ 1,392.30 $ 356.10 $ 262.26 $ 2,010.66 $ 1,563.90 $ 400.80 $ 294.70 $ 2,259.40 627212003 0.89 8,700 200 3,105.90 1,424.40 679.55 5,209.84 3,488.70 1,603.20 763.78 5,855.68 627212004 0.46 8,500 100 3,034.50 712.20 562.01 4,308.70 3,408.50 801.60 631.52 4,841.62 627212005 0.82 12,100 170 4,319.70 1,210.74 829.57 6,360.00 4,852.10 1,362.72 932.22 7,147.04 627212006 0.25 5,800 50 2,070.60 356.10 364.01 2,790.70 2,325.80 400.80 409.00 3,135.60 627212009 0.25 8,200 50 2,927.40 356.10 492.53 3,776.02 3,288.20 400.80 553.36 4,242.36 627212010 0.25 3,200 50 1,142.40 356.10 224.78 1,723.28 1,283.20 400.80 252.60 1,936.60 627212011 0.25 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627212012 0.25 2,400 50 856.80 356.10 181.94 1,394.84 962.40 400.80 204.48 1,567.68 627212014 0.25 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627212015 0.92 21,000 220 7,497.00 1,566.84 1,359.58 10,423.42 8,421.00 1,763.52 1,527.68 11,712.20 627212016 0.08 - - - - - - - - - - 627212017 0.50 10,200 100 3,641.40 712.20 653.04 5,006.64 4,090.20 801.60 733.78 5,625.58 627221001 0.22 4,800 50 1,713.60 356.10 310.46 2,380.16 1,924.80 400.80 348.84 2,674.44 627221002 0.22 4,800 50 1,713.60 356.10 310.46 2,380.16 1,924.80 400.80 348.84 2,674.44 627221004 0.75 18,200 215 6,497.40 1,531.23 1,204.29 9,232.92 7,298.20 1,723.44 1,353.24 10,374.88 627221008 0.24 5,300 50 1,892.10 356.10 337.23 2,585.44 2,125.30 400.80 378.92 2,905.02 627221009 0.24 4,600 50 1,642.20 356.10 299.75 2,298.04 1,844.60 400.80 336.82 2,582.22 627221010 0.68 1,600 225 571.20 1,602.45 326.05 2,499.70 641.60 1,803.60 366.78 2,811.98 627221011 0.25 - - - - - - - - - - 627222002 0.22 4,400 50 1,570.80 356.10 289.04 2,215.94 1,764.40 400.80 324.78 2,489.98 627222003 0.22 3,300 50 1,178.10 356.10 230.13 1,764.34 1,323.30 400.80 258.62 1,982.72 627222004 0.22 3,300 50 1,178.10 356.10 230.13 1,764.34 1,323.30 400.80 258.62 1,982.72 627222005 0.21 3,000 50 1,071.00 356.10 214.07 1,641.16 1,203.00 400.80 240.58 1,844.38 627222008 0.42 6,700 100 2,391.90 712.20 465.62 3,569.72 2,686.70 801.60 523.24 4,011.54 627222014 0.21 4,700 50 1,677.90 356.10 305.10 2,339.10 1,884.70 400.80 342.82 2,628.32 627222015 0.21 3,900 50 1,392.30 356.10 262.26 2,010.66 1,563.90 400.80 294.70 2,259.40 627222021 0.24 3,800 50 1,356.60 356.10 256.91 1,969.60 1,523.80 400.80 288.70 2,213.30 627222024 0.24 5,100 50 1,820.70 356.10 326.52 2,503.32 2,045.10 400.80 366.88 2,812.78 627222025 0.24 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627222026 0.24 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627222027 0.24 5,200 50 1,856.40 356.10 331.88 2,544.38 2,085.20 400.80 372.90 2,858.90 627222028 0.23 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627222029 0.23 4,800 50 1,713.60 356.10 310.46 2,380.16 1,924.80 400.80 348.84 2,674.44 627222030 0.23 5,000 50 1,785.00 356.10 321.17 2,462.26 2,005.00 400.80 360.88 2,766.68 627222034 0.42 6,300 100 2,249.10 712.20 444.20 3,405.50 2,526.30 801.60 499.18 3,827.08 627222038 0.48 9,900 100 3,534.30 712.20 636.98 4,883.48 3,969.90 801.60 715.72 5,487.22 627222041 0.32 5,900 75 2,106.30 534.15 396.07 3,036.52 2,365.90 601.20 445.06 3,412.16 627222042 0.11 - - - - - - - - - - 627222043 0.29 - - - - - - - - - - 627222044 0.65 13,300 140 4,748.10 997.08 861.78 6,606.96 5,333.30 1,122.24 968.34 7,423.88 627222048 0.42 7,800 100 2,784.60 712.20 524.52 4,021.32 3,127.80 801.60 589.42 4,518.82 627222052 1.42 11,700 250 4,176.90 1,780.50 893.61 6,851.02 4,691.70 2,004.00 1,004.36 7,700.06 627222053 0.59 8,200 150 2,927.40 1,068.30 599.36 4,595.06 3,288.20 1,202.40 673.60 5,164.20 627222054 0.28 9,300 140 3,320.10 997.08 647.58 4,964.76 3,729.30 1,122.24 727.74 5,579.28 627222055 0.47 15,000 100 5,355.00 712.20 910.08 6,977.28 6,015.00 801.60 1,022.50 7,839.10 288,900 3,735 $149,198.70 $167,657.10 Mw iFimrxial Page 23