HomeMy WebLinkAboutRes 87 and 88 President's Plaza III FY 2002-2003 RESOLUTION NO. 02-87
RESOLUTION NO. 02-88
�— —� CITY OF PALM DESERT
CN t
ripperr4 I DEVELOPMENT SERVICES
%.„:14 ~ • EXECUTIVE SUMMARY
To: Honorable Mayor and City Council Members
From: Martin Alvarez, Senior Management Analyst
Date: July 31, 2002
Request: Approval of Resolutions to:
1. Approve or amend the President's Plaza III Business Improvement
District Budget for fiscal year 2002/2003.
2. Order the levy and collection of assessments for fiscal year 2002/2003.
RECOMMENDATION:
Development Services staff recommends the City Council adopt the attached resolutions:
1. Approving the President's Plaza III Business Improvement District Budget for
fiscal year 2002/2003.
2. Ordering the levy and collection of assessments for fiscal year 2002/2003.
BACKGROUND:
The City's existing Business Improvement District know as President's Plaza III has an
annual budget that is required to be reviewed and approved by the City Council. The fees
collected pay for all necessary services and activities to maintain the district in a
satisfactory condition.
Attached, please find a copy of the President's Plaza III Business Improvement District
budget for fiscal year 2002/2003 and necessary resolutions to levy and collect the annual
assessments. No major increases or modifications have occurred to the budget from last
year. The budget does include the standard cost of living increase.
The President's Plaza III Advisory Board will meet on the morning of July 31, 2002 to
review the annual budget. Staff will an oral report to the City Council on the board's
recommendation. The President's Plaza III Advisory Board consists business members
within the district.
This item was added to the July 31, 2002 City Council meeting in order to secure adoption
of the required resolutions to meet the August 15, 2002 deadline to place this years levy on
the county tax roll.
RESOLUTION NO. 02-87
RESOLUTION NO. 02-88
Submitted by:
RTIN ALVAREZ
SENIOR MANAGEMENT ANALYST
Reviewed a d Concur:
OM R CROY
ACTING ASSISTA CT{ MANAGER FOR DEVELOPMENT SERVICES
Reviewed and Concur:
CARLOS L. TEGA PAUL GIBSON
CITY MANAGER FINANCE DIRECTOR
Attachments as noted:
* Approved, subject to the President's CITY COUNCIL ACTION:
Plaza III PBID Advisory Board's approval APPROVED �/ * DENIED
or a report containing the improvements RECEIVED OTHER
and activities to be provided this year,
the estimated costs, the method of MEETING DATE '1-&I-o.
assessment, the amount of surplus and AYES: j)S(,`y) n1 ata Spyj, t5P/E'
deficit, and the contributions from any NOES: Aja •�JJ
other sources. ABSENT: Kr]iv
ABSTAIN: 6�4i 1/1
VERIFIED BY: h i
Original on File hCCity Clerk's Office
2
•
lit
SOLUTION NO, 02-87
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, APPROVING THE MANAGEMENT DISTRICT PLAN FOR THE
PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT
ASSESSMENT DISTRICT, FISCAL YEAR 2002/2003
The City Council of the City of Palm Desert (hereafter referred to as the "City Council") does resolve
as follows:
WHEREAS, in Fiscal Year 2001/2002 the City Council pursuant to the provisions of
Property and Business InVrnrnenL'rn District Law(f 1994, Pant 7 grDivsian 18 gr the Streds and Highzeny Cale iff
California (hereafter referred to as the "Act"), and in accordance with the provisions of the Ggornia
CanstitutzonA rtide XIIID conducted proceedings for the formation of the President's Plaza III Business
Improvement District (hereafter referred to as the "District"), and the levy of annual assessments
connected therewith;and,
WHEREAS, on June 14, 2001 the City Council held a full and fair public hearing regarding
the formation of the District and the establishment of annual assessments and the maximum
assessments required to pay the maintenance and services of landscaping,lighting,refuse collection and
all appurtenant facilities and operations related thereto for a five year period beginning July 1,2001 and
ending June 30,2006 pursuant to the Act;and,
WHEREAS, upon conclusion of the public hearing of June 14, 2001 the City Council
tabulated the property owner assessment protest ballots returned and by resolution confirmed that
majority protest did not exist and by resolution approved the Management District Plan, appointed an
Advisory Board for the District, ordered the formation of the District, and ordered the levy and
collection of the first annual assessments; and,
WHEREAS, pursuant to the Act, the City Council appointed the President's Plaza III
Committee as the Advisory Board for the District and this Advisory Board shall cause to be prepared
an annual Management District Plan (hereafter referred to as the "Report") each fiscal year for which
assessments are to be levied and collected, said Report shall be filed with the City Clerk and shall
contain: any proposed changes to the District boundary; the improvements and activities to be
provided; the estimated costs and method of assessment; the amount of any surplus or deficit; and
contributions from other sources;and,
WHEREAS, pursuant to the Act, the Advisory Board has caused to be prepared a Report in
connection with the District describing the proposed improvements, services, expenditures and
assessments to be levied for Fiscal Year 2002/2003, and filed with the City Clerk of the City of Palm
Desert and the City Clerk has presented to the City Council such Report entitled "Management
District Plan for the President's Plaza III Property and Business Improvement Assessment District,
Fiscal Year 2002/2003; and,
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iESOLUTION NO. 02-87
WHEREAS, The City Council has carefully examined and reviewed the Report as presented,
and is satisfied with each and all of the items and documents as set forth therein,and finds that the levy
of assessments has been spread in accordance with the special benefits received from the
improvements,operation,maintenance and services to be performed,as set forth in said Report; and,
NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY
THE CITY COUNCIL FOR THE DISTRICT,AS FOLLOWS:
Section 1 The above recitals are true and correct.
Section 2 The Management District Plan as presented, consists of the following:
A. A Description of the District boundaries and all properties benefiting from
the improvements and services.
B. A Description of Improvements and services to be provided by the District.
C. The Annual Budget (Estimates of Costs and Expenses of Services,
Operations and Maintenance),
D. The District Roll containing the Levy of Assessments for each Assessor
Parcel within the District,
Section 3 The Report as presented, is hereby approved and is ordered to be filed in the Office of the
City Clerk as a permanent record and to remain open to public inspection.
Section 4: That the City Clerk shall certify to the passage and adoption of this Resolution, and the
minutes of this meeting shall so reflect the presentation of and final approval of the Report and
appointment of the District Advisory Board.
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nr.SOLUTION NO. 02-87
PASSED, APPROVED, AND ADOPTED this 31st day of July 2002 .
STATE OF CALIFORNIA
COUNTY OF RIVERSIDE ss.
CITY OF PALM DESERT
I, Rachelle D. Klassen , City Clerk of the City of Palm Desert, County of
Riverside, State of California do hereby certify that the foregoing Resolution No. 02-87 was
regularly adopted by the City Council of said City of Palm Desert at a regular meeting of said
council held on the 31st day of July , 2002 by the following vote:
AYES: BENSON, CRITES, SPIEGEL
NOES: NONE
ABSENT: KELLY
ABSTAINED: FERGUSON
Jean M. Benson, Mayor Pro-Tempore
City of Palm Desert
City Clerk,Rachelle D. Klassen
City of Palm Desert
3
RESOLUTION NO, 02-88
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA ORDERING THE LEVY AND COLLECTION OF ASSESSMENTS FOR
THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT
ASSESSMENT DISTRICT, FISCAL YEAR 2002/2003
The City Council of the City of Palm Desert, California (hereafter referred to as the "City Council")
hereby finds,determines, resolves and orders as follows:
WHEREAS, on June 14, 2001 the City Council called and duly held a public hearing and
property owner protest ballot proceedings for the President's Plaza III Property and Business
Improvement Assessment District (hereafter referred to as the "District") pursuant to the provisions of
ro
P
Property and Business Inprozenvnt District Law gF1994, Part 7 grDizision 18 cf the Stets and Higlnarx}s Cale f
California (hereafter referred to as the "Act") and the Galiforna Constitution Article XIIID, for the
purpose of presenting to the qualified property owners within the District the annual levy of
assessments and a maximum annual assessment over a five year period beginning July 1, 2001 and
ending June 30, 2006, for the costs and expenses associated with the maintenance and operation of
landscaping,lighting,refuse collection and all appurtenant facilities related thereto; and,
WHEREAS, the landowners of record within the District as of the close of the Public
Hearing held on June 14, 2001 did cast their ballots resulting in the approval of the District formation
and annual levy of assessments related thereto;and,
WHEREAS, the City Council, pursuant to the Act did by previous Resolutions formed the
District, and approved a Management District Plan in connection with the formation of the District
and appointed an Advisory Board that shall cause to be prepared an annual report regarding the
District for the City Council's approval; and,
WHEREAS, the Advisory Board has held a meeting for reviewing and approving the
proposed budget for Fiscal Year 2002/2003 and has prepared a Report in connection with the District
for Fiscal Year 2002/03, and filed with the City Clerk of the City of Palm Desert and the City Clerk
has presented to the City Council such Report entitled "Management District Plan for the President's
Plaza III Property and Business Improvement Assessment District,Fiscal Year 2002/03; and,
WHEREAS, The City Council has carefully examined and reviewed the Report as presented,
and by previous resolution has approved said Report.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL FOR THE DISTRICT,AS FOLLOWS:
Section 1 The above recitals are true and correct.
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RESOLUTION NO. 02-88
Section 2 The City Council desires to levy and collect the annual assessment for President's Plaza
III Property and Business Improvement Assessment District for Fiscal Year 2002/2003 pursuant to
the provisions of the Act.
Section 3 Based upon its review of the Management District Plan, a copy of which has been
presented to the City Council and filed with the City Clerk, the City Council hereby finds and
determines that:
A. The territory of land within the District will receive special benefits from the
operation, maintenance and servicing of the improvements and appurtenant
facilities located within the boundaries of the District.
B. District includes all of the lands so benefited; and
C The net amount to be assessed upon the lands within the District in accordance
with the proposed budget for the fiscal year commencing July 1,2002 and ending
June 30, 2003 is apportioned by a formula and method which fairly distributes
the net amount among all eligible parcels in proportion to the special benefits to
be received by each parcel from the improvements and services.
D. The Assessments so described in the Management District Plan are consistent
with the assessments so approved by the property owners within the District.
Section 4 The Report and assessments as presented to the City Council and on file in the office
of the City Clerk are hereby confirmed as filed.
Section 6 The City Council hereby orders the improvements to be made, and the levy and
collection of annual assessments to pay for those improvements to be presented to the County
Auditor/Controller of Riverside for Fiscal Year 2002/2003. The County Auditor/Controller shall
enter on the County Tax Roll opposite each parcel of land the amount of levy, and such levies shall be
collected at the same time and in the same manner as the County taxes are collected. After collection
by the County,the net amount of the levy shall be paid to the City Treasurer.
Section 7 The City Treasurer shall deposit all money representing assessments collected by the
County for the District to the credit of a fund for the President's Plaza III Property and Business
Improvement Assessment District, and such money shall be expended only for the improvements
described in the Management District Plan.
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RESOLUTION NO. 02-88
Section 8 The adoption of this Resolution constitutes the District levy for the Fiscal Year
commencing July 1,2002 and ending June 30,2003.
Section 9 The City Clerk is hereby authorized and directed to file the levy with the County
Auditor upon adoption of this Resolution.
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RESOLUTION NO. 02-88
PASSED, APPROVED,AND ADOPTED this 31st day of July 2002 .
STAID, OF CALIFORNIA
COUNTY OF RIVERSIDE ss.
CITY OF PALM DESERT
I, Rachelle D. Klassen , City Clerk of the City of Palm Desert, County of
Riverside, State of California do hereby certify that the foregoing Resolution No. 02-88 was
regularly adopted by the City Council of said City of Palm Desert at a regular meeting of said
council held on the 31st day of July ,2002 by the following vote:
AYES: BENSON, CRITES, SPIEGEL
NOES: NONE
ABSENT: KELLY
ABSTAINED: FERGUSON
Jean M. Benson, Mayor Pro-Tempore
City of Palm Desert
CttyClerk, Rachelle D. Klassen
City of Palm Desert
4
CITY OF PALM DESERT
MANAGEMENT DISTRICT PLAN
PRESIDENT'S PLAZA III PROPERTY AND
BUSINESS IMPROVEMENT DISTRICT
FISCAL YEAR 2002/03
CITY OF PALM DESERT
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''_" MuniFinancial
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7
TABLE OF CONTENTS
I. OVERVIEW 1
A. Introduction i
B. Formation i
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 6
IV. DISTRICT BUDGET 10
A. Description of Budget Items 9
B. District Budget 11
APPENDIX A — DISTRICT BOUNDARY MAP 14
APPENDIX B — DISTRICT ASSESSMENT ROLL 17
President's Plaza III Property and i,K.miess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
OVERVIEW
A. Introduction
The City of Palm Desert ("City") formed and established the President's Plaza III
Property and Business Improvement District ("District") beginning in Fiscal Year
2001/02 to provide the annual operation and maintenance of certain improvements
that confer special benefits upon real property within the boundaries of the District.
The District was established and is 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 formed 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"). Pursuant to the Act, the
Council 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 2001/02 through 2005/2006).
This Management District Plan ("Plan") describes the District, improvements and
activities, method of apportionment, boundaries of the District, the budgets, and the
maximum assessment approved for the five-year duration of the District. The
assessments are based on the estimated cost to provide the improvements, activities,
and operation that provide a direct and special benefit to properties within the District.
The costs of improvements, activities, and operation 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
Assessment Number by the County of Riverside Assessor's Office. The County of
Riverside Auditor/Controller uses Assessment Numbers to identify, on the tax roll,
parcels and properties assessed for special district benefit assessments.
B. Formation
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 City Council.
The City Council initiated proceedings for the formation of the District by adopting a
resolution expressing its intention to form the District. The resolution of intention
contained the original Management District Plan and the time and place of a public
hearing on the establishment of the District and levy of assessments.
MuniFinancial Page 1
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President's Plaza III Property and business Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Within 90 days of adopting the resolution of intention, the City Council held a public
meeting and public hearing on the matter, and caused notice to the property owners
pursuant to Section 54954.6 of the Government Code. 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. Pursuant to the
Act, the City Council also published the resolution of intention in a newspaper of
general circulation; mailed the resolution of intention by first-class mail to each
property owner in the District and to each local chamber of commerce and business
organization located within the District.
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
Management District Plan. Pursuant to the California Constitution Article XIIID, the
City Council tabulated property owner assessment ballots received from property
owners to determine whether majority protest existed. It was determined and declared
by resolution that majority protest did not exist and the property owners confirmed
and approved the assessments.
Pursuant to the Act, the City Council appointed 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.
The City Council ordered the formation of the District and the levy and collection of
assessments outlined in the Management District Plan and the first levy of assessments
was submitted to the County Auditor/Controller in Fiscal Year 2001/02 for inclusion
on the property tax roll.
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President's Plaza III Property and business Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
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 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.
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 III, the Agency provides 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 to provide and ensure the
continued operation and maintenance of the improvements after the renovations have
been completed.
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,
and,
• Parking lot lighting facilities — including but not limited to: bulbs, fixtures, poles,
wiring, and electrical energy, and,
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President's Plaza III Property and Z____._ess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
• 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 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, 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,
The benefits associated with landscaped islands and medians within the parking lot are
specifically:
1. Improved aesthetic appeal of the parking area and nearby parcels;
2. Improved dust control;
3. Enhanced adaptation of the urban environment within the natural environment;
4. Improved traffic circulation;
5. A positive representation of the businesses within the District;
6. Centralized locations for refuse collection facilities; and,
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President's Plaza III Property and L...a...ess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Parking lot sweeping is an essential and necessary activity for all properties—
particularly commercial properties. This service is funded through the assessments
solely for the special benefit of properties within the District. The benefits associated
with this service is:
1. Enhanced aesthetic appeal of the parking area and the properties that are associated
with the parking area;
2. Improved dust control,
The on-going operation and maintenance of the landscaping, lighting improvements
and sweeping service 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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President's Plaza III Property and E.,.ess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
III. METHOD OF APPORTIONMENT
A. Method of Apportionment Rationale
The costs of the District improvements and services 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.
B. Method of Apportionment Calculations
The Total Direct Costs of the parking lot improvements and services are apportioned
to each parcel within the District based on each parcel's lot size in square feet. In
addition to a parcel's Total Direct Cost, each parcel is assessed for District
administration expenses and a reserve fund collection (Indirect Costs). The Indirect
Costs for each parcel have been apportioned in the same manner as Total Direct Costs.
Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share
of the Total Direct Costs and Total Indirect Costs.
Apportionment of Direct Costs
The Total Direct Costs estimated for parking lot improvements and services
(maintenance) is based on the estimated annual costs to maintain the landscaping,
lighting, and mechanical sweeping of the parking lot within President's Plaza III. This
Total Direct Cost, 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 following formulas, costs and rates are
proposed for the direct cost calculation of assessments for the Fiscal Year 2002/03.
Please refer to the District Budget (Table 1) for future assessment rates.
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President's Plaza III Property and i ress Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
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President's Plaza III Property and ness Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Total Direct Cost/Total Square Footage = Rate per Square Foot
Rate x Parcel Square Footage = Direct Cost Assessment Component
Proposed
Direct Rate
Costs (per sq ft)
Second Fiscal Year $11,948 $0.026
(Fiscal Year 2002/2003)
Apportionment of Indirect (Administration/Reserve) Costs
To ensure the improvements, activities, and services provided and funded through the
District are continued, each parcel will be assessed for administrative and reserve costs
(Indirect Costs). These Indirect Costs include all expenses related to the administration
of the District as well as the collection of money towards a Reserve Fund. The Reserve
Fund Collection is to be slightly over forty percent (40%) of the annual Total Direct
Costs of the District.
Similar to the method of apportionment for Total Direct Costs, the District's indirect
costs are apportioned to each parcel based on each parcel's lot size in square feet. The
following formulas, costs and rates are proposed for the indirect cost calculation of
assessments for the Fiscal Year 2002/03. Please refer to the District Budget (Table 1)
for future assessment rates.
Total Indirect Cost/Total Square Footage = Rate per Square Foot
Rate x Parcel Square Footage = Indirect Cost Assessment Component
Indirect Rate
Costs (per sq ft)
Secnd Fiscal Year $10,704 $0.024
(Fiscal Year 2002/2003)
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II
President's Plaza III Property and ness Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Total Annual Assessment
Each parcel's Total Annual Assessment is the sum of their proportionate share of the
Direct Costs and Indirect Costs. The preceding description of the method of
apportionment outlines the estimated cost and rates applied for the District in Fiscal
Year 2002/03, using the formulas adopted and approved when the District was formed
in Fiscal Year 2001/01_The following provides a summary of the proposed assessment
rates for Fiscal Year 2002/03. Please refer to the District Budget (Table 1) for future
assessment rates.
Direct Cost Rate + Indirect Cost Rate = Total Rate per Square Foot
Proposed
FY 02/03
Rate (sq ft)
Direct Cost Rate $ 0.026
Indirect Cost Rate 0.024
Total Assessment Rate $ 0.050
Annual Budget Adjustments
For the initial five years of the PBID, annual assessments may be adjusted by the
President's Plaza III PBID Advisory Board 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 Advisory Board. In any event, assessments will not exceed the levels illustrated by
the District Budget (Table 1).
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.
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IZ
President's Plaza III Property and ness Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
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
and operations required within the District will be determined by City staff.
Landscape Water—Utility cost to furnish water for required landscape irrigation.
Landscape Electric—Utility cost for furnishing of electricity required for the
operation of the irrigation systems and landscape maintenance.
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.
Indirect Benefit Costs (Administration/Reserves)
District Administration—The cost to all departments and staff of the City, for
providing the coordination of District services, operations and maintenance of the
District, response to public concerns and education, and procedures associated with the
levy and collection of assessments. This cost also includes contracting with
professionals to provide additional administrative, legal, or engineering services specific
to the District.
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.
MuniFinancial Page 10
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President's Plaza III Property ana_...,iness Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
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 $0.25
per assessment, and is in addition to the County Administration Fee.
Operating Reserve Fund Collection—The Operating Reserve Fund provides for
collection of funds to operate the District, for each fiscal year, from the time period of
July 1 through January when the County provides the City with the first installment
of assessments collected from the property tax bills. The Operating Reserve Fund
eliminates the need for the City to transfer funds from non-District accounts to pay for
District charges during the first half of FY 2002/03 through FY 2005/06. Because the
District began operation in FY 2001/02, with no assessments collected in the prior
fiscal year (FY 2000/01), the first six months of District operations (in FY 2001/02)
was funded through non-District accounts. Once the District received the first
installment of assessments from the County of Riverside in January 2002, the non-
District account(s) were reimbursed.
Parking Lot Fund—The Parking Lot Maintenance Fund provides funds for the sealing
and re-striping of the parking lot after the fourth year of the term of the District. The
cost of sealing and re-striping totals $29,771.40 (15 cents per square foot multiplied by
198,476 square feet of surface area).
Insurance—This line item supports insurance costs for the operation of the District.
Levy Breakdown
Total District Costs—This is the sum total of all budgeted Direct and Indirect costs.
District Statistics
Total Parcels —The total number of parcels within the District.
Total Parcels to Levy—The total number of parcels within the District that will be
assessed. Non-assessed lots or parcels include easements, common areas, and parcels
within the boundaries of the District that currently do not benefit from the
improvements.
Total Parcel Square Footage—This is the sum total of the parcel square 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 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 three decimal places.
MuniFinancial
Page 11 � 1
President's Plaza III Property and. less Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
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President's Plaza III Property and, zess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
B. District Budget
The District Budget shown on the following table (Table 1), lists the estimated costs of
providing the various improvements and services within the District. The costs and the
resulting rates for Fiscal Year 2001/02 through Fiscal Year 2005/06 are based on the
estimated costs to provide the improvements and services for each year, adjusted for
the three percent (3%) inflation factor.
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 the
original Management District Plan, without first obtaining property owner approval
through assessment ballots.
MuniFinancial Page 13
President's Plaza III Property and. zess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Table 1. President's Plaza Ill PBID, Estimated Five-Year Budget
Estimated Estimated Estimated Estimated Estimated Proposed
Budget Budget Budget Budget Budget Budget
Budget Items 2001/02 2002/03 2003/04 2004/05 2005/06 2002/03
Direct Costs
Landscape Maintenance $ 3,360 $ 3,461 $ 3,565 $ 3,672 $ 3,782 $ 3,461
Landscape Water 720 742 764 787 810 742
Lighting and Landscape Electric 3,900 4,017 4,138 4,262 4,389 4,017
Landscape Repairs 500 515 530 546 563 515
Sweeping Services 3,120 3,214 3,310 3,409 3,512 3,214
Subtotal Direct Costs $ 11,600 $ 11,948 $ 12,306 $ 12,676 $ 13,056 $ 11,948
Indirect Costs
District Administration $ 3,000 $ 3,090 $ 3,183 $ 3,278 $ 3,377 $ 3,090
County Administration Fee 150 155 159 164 169 155
County Per Parcel Fee 4 4 4 4 5 4
Operating Reserve Fund 5,000 - - - - -
Parking Lot Fund 5,955 5,955 5,955 5,955 5,955 5,955
Insurance 1,500 1,500 1,500 1,500 1,500 1,500
Subtotal Indirect Costs $ 15,609 $ 10,704 $ 10,801 $ 10,901 $ 11,005 $ 10,704
Total District Costs 5 27,209 $ 22,652 $ 23,108 5 23,577 $ 24,061 5 22,b52
District Statistics
Total Parcels 16 16 16 16 16 16
Total Parcels To Levy 16 16 16 16 16 16
Total Parcel Square Footage 453,956 453,956 453,956 453,956 453,956 453,956
Levy Rate Per Square Foot $ 0.060 $ 0.050 $ 0.051 $ 0.052 $ 0.053 $ 0.050
Reserve Information
Beginning Reserve Balance $ - $ 5,000
Ending Reserve Balance $ 5,000 $ 5,000
Parking Lot Fund Information
Beginning Parking Lot Fund Balance $ - 5,955 - - - $ 5,955
Ending Parking Lot Fund Balance $ 5,955 11,910 - - - $ 11,910
'oe :
1. Budgets for FY 2002/03 through FY 2005/06 are increased by the proposed 3% inflation factor.
Sources: City of Palm Desert; MuniFinancial.
MuniFinancial Page 14
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President's Plaza III Property and 1 ress Improvement District
Management Distncc Plan, City of Palm Desert
Fiscal Year 2002/03
APPENDIX A - DISTRICT BOUNDARY MAP
The boundary map for the District is on the following page and is inclusive of all parcels
identified on the County of Riverside Assessor's Parcel Map Book 627, Page 192.
MuniFinancial Page 15
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President's Plaza III Property and. zess Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
Exhibit A — DISTRICT BOUNDARY MAP INSERTED HERE
MuniFinancial Page 16 ‘9
President's Plaza III Property and. less Improvement District
Management District Plan, City of Palm Desert
Fiscal Year 2002/03
APPENDIX B - DISTRICT ASSESSMENT ROLL
Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on
the County Assessor's Map for the year in which this Report is prepared.
A listing of parcels assessed within this District, along with the assessment amounts, is
included on the following page.
MuniFinancial Page 17
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President's Plaza III Property and tess Improvement District
Management DisulcL Plan, City of Palm Desert
Fiscal Year 2002/03
Table 2. President's Plaza III PBID Proposed Levy Information
F/Y UZ/U3 F/Y 01/U,i
Maximum Maximum
Lot Size Proposed Proposed
APN Situs Address Property Owner (sq ft) Levy Rate Assessment
627-192-006 73185 US Highway 111 Darmon Real Estate Investment Inc 11,000 0.050 $ 548.88
627-192-009 73211 US Highway 111 Darmon Real Estate Investment Inc 10,933 0.050 545.54
627-192-014 73100 El Paseo El Paseo Collection North 33,940 0.050 1,693.54
627-192-020 73160 El Paseo Rural Stores Inc 11,980 0.050 597.78
627-192-021 73170 El Paseo Linder David&Barbara 11,958 0.050 596.68
627-192-022 73180 El Paseo W Ray Henderson Md Inc 11,936 0.050 595.58
627-192-023 73190 El Paseo Lyons Gary W 11,814 0.050 589.50
627-192-024 73200 El Paseo Kamo Norton S 35,741 0.050 1,783.42
627-192-033 73241 US Highway 111 Center Associates 43,560 0.050 2,173.56
627-192-034 73101 US Highway 111 Just Llc 45,738 0.050 2,282.24
627-192-035 73125 US Highway 111 Brown Chtantal Et Al 46,173 0.050 2,303.96
627-192-036 73040 El Paseo Cotter James F 17,424 0.050 869.42
627-192-037 73080 El Paseo El Paseo Collection North 34,848 0.050 1,738.86
627-192-038 73155 US Highway 111 Fairfield Home Inc 44,431 0.050 2,217.04
627-192-039 73195 US Highway 111 Darmon Real Estate Investment Inc 21,932 0.050 1,094.36
627-192-040 73130 El Paseo Langman David Langman Airline 60,548 0.050 3,021.24
Total 453,956 $ 22,652
Sources:County of Riverside Assessors Office;MuniFinancial.
MuniFinancial Page 18
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