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HomeMy WebLinkAboutRes 01-46 through 01-49 Presiden's Plaza III Resolution for Adoption Resolution No. 01-46 Resolution No. 01-47 Resolution No. 01-48 Resolution No. 01-49 Contract No. C18740 � \►� STAFF REPORT bim �/`ti,. Office of the City Manager TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: PAT CONLON, SPECIAL PROJECTS ADMINISTRATOR DATE: APRIL 12, 2001 SUBJECT: PRESIDENT'S PLAZA III — FORMATION OF A BUSINESS IMPROVEMENT DISTRICT RECOMMENDATION 1) Approve Resolution No. 01-46 , declaring the City's intention to form the President's Plaza III 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. 2) Approve Resolution No. 01-47 , initiating proceedings for the formation of the President's Plaza III property and Business Improvement District, and the levy and collection of assessments, pursuant to the provisions of Part 7of Division18 of the California streets and highways code. 3) Approve Resolution No. 01-48 , describing proposed improvements and services and approval of the preliminary management district plan regarding the proposed formation of the President's Plaza III 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. 4) Approve Resolution No. 01-49 , preliminary approve an engineer's report for the President's Plaza III property and Business Improvement District, Fiscal Year 2001/02. 5) Authorize staff to advertise and obtain design-build proposals for the reconstruction of President's Plaza III and report back to the City Council with a recommendation for award of contract. G:\CityMgr\Monica O'Reilly\wpdocs\Pat Conlon\Staff Reports\StaffRptPresPlzaDist.wpd Resolution No. 01-46 Resolution No. 01-47 Resolution No. 01-48 Resolution No. 01-49 Contract No. C18740 Staff Report President's Plaza III — Formation of a Business Improvement District April 12, 2001 EXECUTIVE SUMMARY These resolutions are necessary to begin the formation of a Business Improvement District which when approved by fifty-one percent (51%) of the property owners will fund the utilities, insurance, and maintenance costs of the proposed public parking lot. Authorization to go out for bid is also necessary at this time to begin and complete the improvements to President's Plaza III during the summer. BACKGROUND After several meetings with the property owners and the requisite number of petitions requesting formation of the Business Improvement District returned to the City, we are now at the point where we may start the process of formation of the Business Improvement District. When the improvements to the public parking lot are complete, the goal of the Business Improvement District is to have a mechanism in place for the property owners to pay for their share if the utilities, insurance, and ongoing maintenance of the parking lot; similar to President's Plaza I and II with the exception that trash service is not included in the maintenance cost of this district. The owners will retain control over their individual trash pick-up service. Attached to this report are the following documents necessary to pursuant Proposition 218 to begin the district formation: a) 4 resolutions; b) preliminary management district; c) preliminary engineer's report. At the meetings with the property owners, it was unanimous for the reconstruction of the parking lot to take place during the summer months (June to mid September). The redesign and reconstruction of President's Plaza III parking lot will achieve improvement in the following critical areas: 1) The redesign adds 108 parking spaces to the parking lot which will help relieve the crowded parking conditions currently in the area of Palominos, California Pizza Kitchen, and Tony Roma's restaurants. 2) Improved traffic circulation. 3) Improved drainage. G.\CityMgr\Monica O'Reilly\wpdocs\Pat Conlon\Staff Reports\StaffRptPresPlzaDist.wpd 7 Resolution No. 01-46 Resolution No. 01-47 Resolution No. 01-48 Resolution No. 01-49 Staff Report Contract No. C18740 President's Plaza III — Formation of a Business Improvement District April 12, 2001 4) Updated and expanded trash enclosures with enough room for recycle bins. 5) Updated handicap parking stalls conforming to ADA standards. 6) Shade tree landscaping and placement conforming to our current City parking lot standards. 7) Parking lot illumination conforming to our current City lighting standards during the evening hours, increased safety of the employees and patrons of the adjacent businesses. A copy of the site plan is attached to this report for your review. The next step in the Business Improvement District formation is the mailing of the ballots to the 16 property owners, and after the required 45-day ballot period a public hearing will be held to count the ballots and determine if the district will be formed. During this period staff would like to advertise for design-build proposals and return back to the City Council at the same meeting as the public hearing to award the contract for construction. Only if the district is successful in forming. Please call me if you have any questions. Respectfully submitted: CITY COUNCILCTION: APPROVED DENIED RECEIVED OTHER MET IN DATE rQ :'AYES: inAAA-tom) k.04 , 4.41,616 0 PA CONLON NOES SPECIAL PROJECT ADMINISTRATOkBSENT: _•4. S1AIN VERIFIED BY: mo Original on File with ' ; erk' s Office Attachments Reviewed and concur: CARLOS L. ORTEGA CITY MANAGER G:\CityMgr\Monica O'Reilly\wpdocs\Pat Conlon\Staff Reports\StaftRptPresPlzaDist.wpd 3 s • RESOLUTION NO. 01-49 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 III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, FISCAL YEAR 2001/02 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 III 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 California Constitutional Articles XIIIC and XIIID; and, WHEREAS, there has now been presented to this City Council the Preliminary Engineer's Report as required by California Constitutional Articles 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, 2001, and ending June 30, 2002, in accordance with California Constitutional Articles 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. 1 RESOLUTION NO. 01-49 b) The Annual Budget (Costs and Expenses of Services, Operations and Maintenance). c) The Method of Apportionment. 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 1999/2000. 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 III Property and Business Improvement District". Section 8 Proposed Assessment Amounts: For Fiscal Year 2001/2002, 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 California Constitution,Articles XIIIC and XIIID. 2 • • RESOLUTION NO. 01-49 The foregoing Resolution 01-49 was passed and adopted by the City Council of the City of Palm Desert on the 12th day of April , 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JIM FERGUSON, MAYOR City of Palm Desert ATTEST: SHEILA R. GILLIGAN, CITY CLERK City of Palm Desert 3 RESOLUTION NO. • 01-48 DESCRIBING PROPOSED IMPROVEMENTS AND SERVICES AND APPROVAL OF THE PRELIMINARY MANAGEMENT DISTRICT PLAN REGARDING THE PROPOSED FORMATION OF THE PRESIDENT'S PLAZA III 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 Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act"), did by previous Resolution, initiate proceedings for the formation of the President's Plaza III Property and Business Improvement District (hereafter referred to as the "District"), pursuant to the provisions of the Act, and did order the preparation of a 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 Preliminary Management District Plan, which is incorporated herein by reference, and WHEREAS, The City Council has carefully examined and reviewed the Preliminary 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 1 RESOLUTION NO. 01-48 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 Preliminary Boundary Map for the boundaries of the District. The foregoing Resolution 01-48 was passed and adopted by the City Council of the City of Palm Desert on the 12th day of April , 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JIM FERGUSON, MAYOR City of Palm Desert ATTEST: SHF,ILA R. GILLIGAN, CITY CLERK City of Palm Desert 2 • RESOLUTION NO. 01-47 INITIATING PROCEEDINGS FOR THE FORMATION OF THE PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT, AND THE LEVY AND COLLECTION OF ASSESSMENTS, PURSUANT TO THE PROVISIONS OF PART 7 OF DIVISION 18 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE 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 III Property and Business Improvement District (hereafter referred to as the "District") pursuant to the provisions of the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the Streets and Highways Code of California (hereafter referred to as the "Act"), 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 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; 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 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 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 III 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 III Property and Business Improvement District." 1 RESOLUTION NO. 01-47 The foregoing Resolution )01-47 was passed and adopted by the City Council of the City of Palm Desert on the 12th day of April , 2001, by the following vote: AYES: BENSON, CRITES, KELLY, SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: FERGUSON JIM, FERGUSON, MAYOR City of Palm Desert ATTEST: SHEILA R. GILLIGAN, CITY CLERK City of Palm Desert 2 RESOLUTION NO. 01-47 The foregoing Resolution )01-47 was passed and adopted by the City Council of the City of Palm Desert on the 12th day of April , 2001, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JIM, FERGUSON, MAYOR City of Palm Desert ATTEST: SHEILA R. GILLIGAN, CITY CLERK City of Palm Desert 2 CITY OF PALM DESERT PRELIMINARY ENGINEER'S REPORT PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2001/02 MuniFinancial A WILLDAN COMPANY Corporate Office Regional Offices 28765 Single Oak Drive ♦ Jacksonville, FL Suite 200 ♦ Kansas City, MO Temecula, CA 92590 ♦ Oakland, CA Tel: (909)699-3990 ♦ Phoenix, AZ Tel: (800) 755-MUNI (6864) ♦ Sacramento, CA Fax: (909)699-3460 ♦ Seattle, WA www.muni.com ♦ Washington, DC ♦ Whittier, CA ENGINEER'S REPORT AFFIDAVIT City of Palm Desert President's Plaza III Property and Business Improvement District City of Palm Desert Riverside County, State of California This Report describes the District and defines improvements, budget and method of assessment apportionment, and the parcels proposed to be levied for Fiscal Year 2001/02 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 , 2001. MuniFinancial Assessment Engineer On Behalf of the City of Palm Desert By: Brian Jewett Project Manager By: Richard Kopecky R. C. E. # 16742 TABLE OF CONTENTS OVERVIEW 1 Introduction 1 District Formation Process 2 DESCRIPTION OF THE DISTRICT 3 Description of the District Boundary 3 Description of the Improvements and Activities 3 Special Benefits of the Improvements and Activities 4 METHOD OF APPORTIONMENT 6 Method of Apportionment Rationale 6 Method of Apportionment Calculations 6 DESCRIPTION OF BUDGET ITEMS 9 District Budget 12 APPENDIX A — DISTRICT BOUNDARY MAP 14 APPENDIX B — DISTRICT ASSESSMENT ROLL 16 President's Plaza III Property 'Business Improvement District Preliminary En, is Report, City of Palm Desert Fiscal Year 2001/02 OVERVIEW Introduction The City of Palm Desert ("City") proposes to establish the President's Plaza III Property and Business Improvement District ("District"). The purpose of the District is 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 is proposed to have a maximum term of five years beginning in Fiscal Year 2001/02 and ending in Fiscal Year 2005/06. Once the term of the District has expired, the property owners within the District have the ability to renew the District up to another five-year term as provided by California law. The City of Palm Desert Redevelopment Agency ("Agency") currently is in the process of installing and constructing various improvements to the private parking lot included within the boundaries of the proposed District. The installation and construction of the improvements will be fully funded by the Agency. The annual operation and maintenance of these improvements are proposed to be funded through District assessments. The assessments are proposed to be levied on the District parcels that benefit from the annual operation and maintenance of these improvements. The District is proposed to be established and levied pursuant to the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code ("Act"). Pursuant to the Act, property owners within the District must submit a signed petition requesting formation of the District. The District can be formed, and a maximum assessment 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 may propose 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 Engineer's Report ("Report") describes the proposed District, improvements and activities, method of apportionment, special benefit analysis, boundaries of the District, the proposed budgets, and the maximum assessment to be approved for the five-year duration of the District. The proposed 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 MuniFinancial Page 1 • President's Plaza III Property Business Improvement District Preliminary Em is Report, City of Palm Desert Fiscal Year 2001/02 Riverside Auditor/Controller uses Assessment Numbers to identify, on the tax roll, parcels and properties assessed for special district benefit assessments. District Formation Process A written petition of the property owners within the District, representing more than 50 percent of the proposed District assessment to be levied, is required in order to initiate formation proceedings. The City Council may initiate proceedings for the formation of the District by adopting a resolution expressing its intention to form the District. The resolution of intention contains the original Management District Plan, this Report and the time and place of a public hearing on the establishment of the District and levy of assessments. Not less than forty-five (45) days and not more than ninety (90) days of adopting the resolution of intention, the City Council may hold a public hearing on the matter of formation, and cause notice to the property owners pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (property owner protest ballots) may be mailed to each property owner at least 45 days prior to the public hearing pursuant to Article XIIID of the California Constitution. At the public hearing, the City Council will provide the public and property owners an opportunity to provide oral protests and written protests prior to the adoption of the Management District Plan and the final Engineer's Report. Pursuant to the California Constitution Article XIIID, the City Council will tabulate property owner assessment ballots received from property owners to determine whether majority protest exists. If it is determined and declared by resolution that majority protest does not exist and the property owners confirm and approve the assessments, the District may be formed. Pursuant to the Act, the City Council shall 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. MuniFinancial Page 2 President's Plaza III Property i ;usiness Improvement District Preliminary Eng 's Report, City of Palm Desert Fiscal Year 2001/02 DESCRIPTION OF THE DISTRICT 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. 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 currently is providing 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 is proposed to be 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, MuniFinancial Page 3 • President's Plaza III Property 3usiness Improvement District Preliminary Eng 's Report, City of Palm Desert Fiscal Year 2001/02 • 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. Special Benefits of the Improvements and Activities All assessed properties within the District receive special benefits from one or more of the improvements and activities funded through the District assessments. Specifically, lighting and landscaping amenities within the parking lot, and regular sweeping of the parking lot. The special benefits of lighting (parking lot lights) are the convenience, safety, and security of property, improvements, and goods. Specifically: 1. Enhanced deterrence of crime and the aid to police protection; 2. Increased nighttime safety for patrons and employees; 3. Improved visibility for pedestrians and motorists; 4. Improved ingress and egress to property; 5. Reduced vandalism and other criminal acts and damage to improvements or property; 6. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, MuniFinancial Page 4 President's Plaza III Property Business Improvement District Preliminary En is Report, City of Palm Desert Fiscal Year 2001/02 7. The special enhancement to the value of property which results from the above benefits. Parking lot sweeping is an essential and necessary activity for all properties— particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service is: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property which results from the above benefits. The on-going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. MuniFinancial Page 5 President's Plaza III Property Business Improvement District Preliminary Eng 's Report, City of Palm Desert Fiscal Year 2001/02 METHOD OF APPORTIONMENT Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method of Apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) 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 rate provided below is for Fiscal Year 2001/02 only. Please refer to the District Budget (Table 1) for future assessment rates. MuniFinancial Page 6 • President's Plaza III Property 3usiness Improvement District Preliminary Eng 's Report, City of Palm Desert Fiscal Year 2001/02 Total Direct Cost/Total Square Footage = Rate per Square Foot Rate x Parcel Square Footage = Direct Cost Assessment Component Proposed Direct Rate CDita (per sq ft) First Fiscal Year $11,600 $0.026 Apportionment of Indirect (Administration/Reserve) Costs To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel will be assessed for administrative and reserve costs (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. The Reserve Fund Collection is proposed to be slightly 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 rate provided below is for Fiscal Year 2001/02 only. 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 Proposed Indirect Rate Costs (per sq ft) First Fiscal Year $15,609 $0.034 MuniFinancial Page 7 • President's Plaza III Propertj Business Improvement District Preliminary En is Report, City of Palm Desert Fiscal Year 2001/02 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in the first fiscal year of existence (FY 2001/01). The rate provided below is for Fiscal Year 2001/02 only. 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 01/02 Rate (sq ft) Direct Cost Rate $ 0.026 Indirect Cost Rate 0.034 Total Assessment Rate $ 0.060 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. MuniFinancial Page 8 President's Plaza III Property Business Improvement District Preliminary En is Report, City of Palm Desert Fiscal Year 2001/02 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 9 President's Plaza III Property Business Improvement District Preliminary End 's Report, City of Palm Desert Fiscal Year 2001/02 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 is proposed to operate beginning 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) will be funded through non-District accounts. Once the District receives the first installment of assessments from the County of Riverside in January 2002, the non- District account(s) will be reimbursed. The Operating 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. The Operating Reserve Fund Collection amount is slightly more than forty percent (40%) of the annual Total Direct Costs of the District in FY 2001/02 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. MuniFinancial Page 10 President's Plaza III Property Business Improvement District Preliminary En is Report, City of Palm Desert Fiscal Year 2001/02 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 President's Plaza III Property Business Improvement District Preliminary En! Report, City of Palm Desert Fiscal Year 2001/02 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 this Report without first obtaining property owner approval through assessment ballots. MuniFinancial Page 12 ' President's Plaza III Property Business Improvement District Preliminary End -'s Report, City of Palm Desert Fiscal Year 2001/02 Table 1. President's Plaza Ill PBID, Estimated Five-Year Budget Estimated Estimated Estimated Estimated Estimated Budget Budget Budget Budget Budget Budget Items 2001/02 2002/03 2003/04 2004/05 2005/06 Direct Costs Landscape Maintenance $ 3,360 $ 3,461 $ 3,565 $ 3,672 $ 3,782 Landscape Water 720 742 764 787 810 Lighting and Landscape Electric 3,900 4,017 4,138 4,262 4,389 Landscape Repairs 500 515 530 546 563 Sweeping Services 3,120 3,214 3,310 3,409 3,512 Subtotal Direct Costs $ 11,600 $ 11,948 $ 12,306 $ 12,676 $ 13,056 Indirect Costs District Administration $ 3,000 $ 3,090 $ 3,183 $ 3,278 $ 3,377 County Administration Fee 150 155 159 164 169 County Per Parcel Fee 4 4 4 4 5 1 Operating Reserve Fund 5,000 - - - - Parking Lot Maintenance 5,955 5,955 5,955 5,955 5,955 Insurance 1,500 1,500 1,500 1,500 1,500 Subtotal Indirect Costs $ 15,609 $ 10,704 $ 10,801 $ 10,901 $ 11,005 Total District Costs $ 27,209 $ 22,652 $ 23,108 $ 23,577 $ 24,061 District Statistics Total Parcels 16 16 16 16 16 Total Parcels To Levy 16 16 16 16 16 Total Parcel Square Footage 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 Reserve Information (FY 2001/02 only) Y) Beginning Reserve Balance $ - Ending Reserve Balance $ 5,000 Notes: 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 13 President's Plaza III Property Business Improvement District Preliminary End is Report, City of Palm Desert Fiscal Year 2001/02 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 14 SHEET 1 OF 2 ayi > a L.i D- a I- Z I- O CC HWY. 111 d RECORDED IN THE OFFICE OF THE CITY CLERK. THIS 200_ DAY OF AL If CITY CLERK ANII CITY PALM DESERT �� RECORDED IN THE OFFICE OF THE DIRECTOR OF PUBLIC WORKS/CITY ENGINEER,CITY OF PALM DESERT,THIS DAY OF 200� IIIIIIIE 4- MESA *� VIEW DR. PROJECT DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SITE ORIGINAL PARCELS CITY OF PALM DESERT p MAP ASSESSOR'S N.T.S. REF. NO. PARCEL NO. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARY OF THE 1 627-192-014 PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT,CITY OF 2 627-192-040 PALM DESERT,COUNTY OF RIVERSIDE,STATE OF CALIFORNIA,WAS APPROVED BY THE 627-192-020 CITY OF PALM DESERT CITY COUNCIL AT A REGULAR MEETING THEREOF,HELD ON THE ,2' 3DAY OF 200 BY ITS RESOLUTION NO. 4 627-192-021 5 627-192-022 6 627-192-023 7 627-192-024 CITY CLERK VICINITY MAP 9 627-192-033 CITY OF PALM DESERT 9 627-192-009 FILED THIS DAY OF .200_AT THE HOUR OF 10 627-192-039 11 627-192-006 O'CLOCK .M.,IN BOOK OF MAPS OF ASSESSMENT AND COMMUNITY FACILITIES DISTRICTS AT PAGE(S) AND AS INSTRUMENT NO. 12 627-192-038 -IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF RIVERSIDE. 13 627-192-035 STATE OF CALIFORNIA. 14 627-192-034 15 627-192-037 FEE: __ INST.NO.: 16 627-192-036 GARY L. ORSO ASSESSOR.CLERK-COUNTY RECORDER 17 627-192-042(Portion) BY DEPUTY, COUNTY RECORDER COUNTY OF RIVERSIDE THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS DIAGRAM SHALL BE THOSE LINES AND DIMENSIONS AS SHOWN ON THE RIVERSIDE COUNTY ASSESSOR MAPS FOR THOSE PARCELS LISTED. THE RIVERSIDE COUNTY ASSESSOR'S MAPS SHALL GOVERN FOR ALL DETAILS CONCERNING THE LINES AND DIMENSIONS OF SUCH LOTS OR PARCELS. • Muni Financial PROPOSED BOUNDARY MAP OF A WILLDAN COMPANY °• 28785 Single Oak Drive PRESIDENT'S PLAZA III PROPERTY AND BUSINESS Suite 200 IMPROVEMENT DISTRICT Temecula, California 92590-3661 Phone (909) 699-3990 Fax (909) 699-3460 CITY OF PALM DESERT R.0 Christopher R. Wuerz COUNTY OF RIVERSIDE R.C.E. ,y50556 STATE OF CALIFORNIA 1210023-0000-12 (01-025) APRIL 2001 SHEET 2 OF 2 STATE HWY 111 ti PALM DESERT DR. tc \ �cC\ 71 O ( '^ D Z j \� U) 6 15 EL PASEO / /i/ LEGEND lammiiieRgo PROPOSED DISTRICT BOUNDARY OMAP REFERENCE NUMBER Wm% MuniFinancial PROPOSED BOUNDARY MAP OF o.• A WILLDAN COMPANY PRESIDENT'S PLAZA III PROPERTY AND BUSINESS 26765 Single 0°k Drive Suite 200 IMPROVEMENT DISTRICT Temecula. California 92590-3661 Phone (909) 699-3990 Fax (909) 699-3460 Bo' ao' 0' 60' CITY OF PALM DESERT �— COUNTY OF RIVERSIDE SCALE: I"= 60 STATE OF CALIFORNIA 1210023-0000-12 (01-025) APRIL 2001 • President's Plaza III Property Business Improvement District Preliminary End is Report, City of Palm Desert Fiscal Year 2001/02 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 16 President's Plaza III Property Business Improvement District Preliminary Ent is Report, City of Palm Desert Fiscal Year 2001/02 Table 2. President's Plaza III PBID Proposed Levy Information 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 0.060 $ 659.32 627-192-009 73211 US Highway 111 Darmon Real Estate Investment Inc 10,933 0.060 655.30 627-192-014 73100 El Paseo El Paseo Collection North 33,940 0.060 2,034.28 627-192-020 73160 El Paseo Rural Stores Inc 11,980 0.060 718.06 627-192-021 73170 El Paseo Linder David&Barbara 11,958 0.060 716.74 627-192-022 73180 El Paseo W Ray Henderson Md Inc 11,936 0.060 715.42 627-192-023 73190 El Paseo Lyons Gary W 11,814 0.060 708.10 627-192-024 73200 El Paseo Karno Norton S 35,741 0.060 2,142.22 627-192-033 73241 US Highway 111 Center Associates 43,560 0.060 2,610.88 627-192-034 73101 US Highway 111 Just Llc 45,738 0.060 2,741.42 627-192-035 73125 US Highway 111 Brown Chantal Et Al 46,173 0.060 2,767.50 627-192-036 73040 El Paseo Cotter James F 17,424 0.060 1,044.36 627-192-037 73080 El Paseo El Paseo Collection North 34,848 0.060 2,088.70 627-192-038 73155 US Highway 111 Fairfield Home Inc 44,431 0.060 2,663.08 627-192-039 73195 US Highway 111 Darmon Real Estate Investment Inc 21,932 0.060 1,314.54 627-192-040 73130 El Paseo Langman David Langman Airline 60,548 0.060 3,629.10 Total 453,956 $ 27,209 Sources:County of Riverside Assessor's Office;MuniFinancial. MuniFinancial Page 17 r CITY OF PALM DESERT PRELIMINARY MANAGEMENT DISTRICT PLAN PRESIDENT'S PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT FISCAL YEAR 2001/02 ®-�%Mun iFinancial agA WILLDAN COMPANY Corporate Office Regional Offices 28765 Single Oak Drive ♦ Jacksonville, FL Suite 200 ♦ Kansas City, MO Temecula, CA 92590 ♦ Oakland, CA Tel: (909) 699-3990 ♦ Phoenix, AZ Tel: (800) 755-MUNI (6864) ♦ Sacramento, CA Fax: (909) 699-3460 ♦ Seattle, WA www.muni.com ♦ Washington, DC ♦ Whittier, CA TABLE OF CONTENTS OVERVIEW 1 Introduction 1 District Formation Process 2 DESCRIPTION OF THE DISTRICT 3 Description of the District Boundary 3 Description of the Improvements and Activities 3 Special Benefits of the Improvements and Activities 4 METHOD OF APPORTIONMENT 6 Method of Apportionment Rationale 6 Method of Apportionment Calculations 6 DESCRIPTION OF BUDGET ITEMS 9 District Budget 12 APPENDIX A — DISTRICT BOUNDARY MAP 14 APPENDIX B — DISTRICT ASSESSMENT ROLL 16 President's Plaza III Property ' —'usiness Improvement District Management -ict Plan, City of Palm Desert Fiscal Year 2001/02 OVERVIEW Introduction The City of Palm Desert ("City") proposes to establish the President's Plaza III Property and Business Improvement District ("District"). The purpose of the District is 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 is proposed to have a maximum term of five years beginning in Fiscal Year 2001/02 and ending in Fiscal Year 2005/06. Once the term of the District has expired, the property owners within the District have the ability to renew the District up to another five-year term as provided by California law. The City of Palm Desert Redevelopment Agency ("Agency") currently is in the process of installing and constructing various improvements to the private parking lot included within the boundaries of the proposed District. The installation and construction of the improvements will be fully funded by the Agency. The annual operation and maintenance of these improvements are proposed to be funded through District assessments. The assessments are proposed to be levied on the District parcels that benefit from the annual operation and maintenance of these improvements. The District is proposed to be established and levied pursuant to the Property and Business Improvement District Law of 1994, Part 7 of Division 18 of the California Streets and Highways Code ("Act"). Pursuant to the Act, property owners within the District must submit a signed petition requesting formation of the District. The District can be formed, and a maximum assessment 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 may propose 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 proposed District, improvements and activities, method of apportionment, boundaries of the District, the proposed budgets, and the maximum assessment to be approved for the five-year duration of the District. The proposed 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 MuniFinancial Page 1 President's Plaza III Property iusiness Improvement District Managemeni rict Plan, City of Palm Desert Fiscal Year 2001/02 Riverside Auditor/Controller uses Assessment Numbers to identify, on the tax roll, parcels and properties assessed for special district benefit assessments. District Formation Process A written petition of the property owners within the District, representing more than 50 percent of the proposed District assessment to be levied, is required in order to initiate formation proceedings. The City Council may initiate proceedings for the formation of the District by adopting a resolution expressing its intention to form the District. The resolution of intention contains the original Management District Plan and the time and place of a public hearing on the establishment of the District and levy of assessments. Within 90 days of adopting the resolution of intention, the City Council may hold a public meeting and public hearing on the matter, and cause notice to the property owners pursuant to Section 54954.6 of the Government Code. Public notices and assessment ballots (property owner protest ballots) may be mailed to each property owner at least 45 days prior to the public hearing pursuant to Article XIIID of the California Constitution. At the public hearing, the City Council will provide 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 will tabulate property owner assessment ballots received from property owners to determine whether majority protest exists. If it is determined and declared by resolution that majority protest does not exist and the property owners confirm and approve the assessments, the District may be formed. Pursuant to the Act, the City Council shall 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. MuniFinancial Page 2 President's Plaza III Property ' lusiness Improvement District Management rict Plan, City of Palm Desert Fiscal Year 2001/02 DESCRIPTION OF THE DISTRICT 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. 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 currently is providing 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 is proposed to be 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, MuniFinancial Page 3 President's Plaza III Property 3usiness Improvement District Mana emeni rict Plan, City rY of Palm Desert Fiscal Year 2001/02 • 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. Special Benefits of the Improvements and Activities P P 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 parkingarea and the properties that are associated PP P P with the parking area; 7. Increased promotion of business activities and opportunities during nighttime hours; and, 8. The special enhancement to the value of property which results from the above benefits. The benefits associated with landscaped islands and medians within the parking lot are specifically: 1. Improved aesthetic appeal of the parking area and nearby parcels; 2. Improved dust control; 3. Enhanced adaptation of the urban environment within the natural environment; 4. Improved traffic circulation; 5. A positive representation of the businesses within the District; 6. Centralized locations for refuse collection facilities; and, MuniFinancial Page 4 President's Plaza III Property iusiness Improvement District Managemeni rict Plan, City of Palm Desert Fiscal Year 2001/02 7. The special enhancement to the value of property which results from the above benefits. Parking lot sweeping is an essential and necessary activity for all properties— particularly commercial properties. This improvement is funded through the assessments solely for the special benefit of properties within the District. The benefits associated with this service is: 1. Enhanced aesthetic appeal of the parking area and the properties that are associated with the parking area; 2. Improved dust control; 3. The special enhancement to the value of property which results from the above benefits. The on-going operation and maintenance of the landscaping, lighting and sweeping improvements provide no measurable general benefit to other properties outside the District or to the public at large. Therefore, these improvements and the corresponding assessments have been identified as 100% special benefit to parcels within the District. MuniFinancial Page 5 ' Presidents Plaza III Property iusiness Improvement District Management rict Plan, City of Palm Desert Fiscal Year 2001/02 METHOD OF APPORTIONMENT Method of Apportionment Rationale The costs of the District improvements have each been apportioned by a formula and method which fairly distributes the net amount to be assessed among all assessed parcels in proportion to the estimated special benefits to be received by each parcel from the improvements. Parking Lot Improvements and Services All assessed parcels within the President's Plaza III PBID have use of, and access to, a centralized parking facility (lot) that provides access, parking, and delivery areas for the businesses and parcels within the District. Because the parking area is a centralized facility used and accessed by all properties within the District, each parcel's benefit is based on the size of such parcel. Therefore, it has been determined that a fair and reasonable reflection of each parcel's benefit for the parking lot improvements shall be based on the approximate size, in square feet, of each parcel. Method of Apportionment Calculations The Total Direct Costs of the parking lot improvements and services are apportioned to each parcel within the District based on each parcel's lot size in square feet. In addition to a parcel's Total Direct Cost, each parcel is assessed for District administration expenses and a reserve fund collection (Indirect Costs). The Indirect Costs for each parcel have been apportioned in the same manner as Total Direct Costs. Therefore, each parcel's Total Annual Assessment is the sum of its proportionate share of the Total Direct Costs and Total Indirect Costs. Apportionment of Direct Costs The Total Direct Costs estimated for parking lot improvements and services (maintenance) 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 rate provided below is for Fiscal Year 2001/02 only. Please refer to the District Budget (Table 1) for future assessment rates. MuniFinancial Page 6 President's Plaza III Property 3usiness Improvement District Managemen, rict Plan, City of Palm Desert Fiscal Year 2001/02 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) First Fiscal Year $11,600 $0.026 Apportionment of Indirect (A mini stration/Reserve) Costs To ensure the improvements, activities, and services provided and funded through the District are continued, each parcel will be assessed for administrative and reserve costs (Indirect Costs). These Indirect Costs include all expenses related to the administration of the District as well as the collection of money towards a Reserve Fund. The Reserve Fund Collection is proposed to be slightly 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 rate provided below is for Fiscal Year 2001/02 only. 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 Proposed Indirect Rate Costs (per sq ft) First Fiscal Year $15,609 $0.034 MuniFinancial Page 7 f President's Plaza III Property ;usiness Improvement District Management rict Plan, City of Palm Desert Fiscal Year 2001/02 Total Annual Assessment Each parcel's Total Annual Assessment is the sum of their proportionate share of the Direct Costs and Indirect Costs. The preceding description of the method of apportionment outlines the estimated cost and rates applied for the District in the first fiscal year of existence (FY 2001/01). The rate provided below is for Fiscal Year 2001/02 only. 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 01/02 Rate (sq ft) Direct Cost Rate $ 0.026 Indirect Cost Rate 0.034 Total Assessment Rate $ 0.060 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. MuniFinancial Page 8 President's Plaza III Property 3usiness Improvement District Managemem rict Plan, City of Palm Desert Fiscal Year 2001/02 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 9 President's Plaza III Property business Improvement District Managemen rict Plan, City of Palm Desert Fiscal Year 2001/02 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 is proposed to operate beginning 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) will be funded through non-District accounts. Once the District receives the first installment of assessments from the County of Riverside in January 2002, the non- District account(s) will be reimbursed. The Operating 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. The Operating Reserve Fund Collection amount is slightly more than forty percent (40%) of the annual Total Direct Costs of the District in FY 2001/02 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. MuniFinancial Page 10 Presidents Plaza III Property iusiness Improvement District Management rict Plan, City of Palm Desert Fiscal Year 2001/02 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 President's Plaza III Property 3usiness Improvement District Managemen 'rict Plan, City of Palm Desert Fiscal Year 2001/02 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 this Report without first obtaining property owner approval through assessment ballots. MuniFinancial Page 12 1 President's Plaza III Property 9usiness Improvement District Managemen 'rict Plan, City of Palm Desert Fiscal Year 2001/02 Table 1. President's Plaza Ill PBID, Estimated Five-Year Budget Estimated Estimated Estimated Estimated Estimated Budget Budget Budget Budget Budget Budget Items 2001/02 2002/03 2003/04 2004/05 2005/06 Direct Costs Landscape Maintenance $ 3,360 $ 3,461 $ 3,565 $ 3,672 $ 3,782 Landscape Water 720 742 764 787 810 Lighting and Landscape Electric 3,900 4,017 4,138 4,262 4,389 Landscape Repairs 500 515 530 546 563 Sweeping Services 3,120 3,214 3,310 3,409 3,512 Subtotal Direct Costs $ 11,600 $ 11,948 $ 12,306 $ 12,676 $ 13,056 Indirect Costs District Administration $ 3,000 $ 3,090 $ 3,183 $ 3,278 $ 3,377 County Administration Fee 150 155 159 164 169 County Per Parcel Fee 4 4 4 4 5 Operating Reserve Fund 5,000 - - - - Parking Lot Maintenance 5,955 5,955 5,955 5,955 5,955 Insurance 1,500 1,500 1,500 1,500 1,500 Subtotal Indirect Costs $ 15,609 $ 10,704 $ 10,801 $ 10,901 $ 11,005 Total District Costs $ 27,209 $ 22,652 $ 23,108 $ 23,577 $ 24,061 District Statistics Total Parcels 16 16 16 16 16 Total Parcels To Levy 16 16 16 16 16 Total Parcel Square Footage 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 Reserve Information (FY 2001/02 only) Beginning Reserve Balance $ - Ending Reserve Balance $ 5,000 Notes: 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 13 President's Plaza III Property 9usiness Improvement District Managemen 'rict Plan, City of Palm Desert Fiscal Year 2001/02 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 14 SHEET 1 OF 2 r w CC a o z I- o Cr HWY. 111 CL RECORDED IN THE OFFICE OF THE CITY CLERK, THIS 200_ DAY OF Illy- EL PASEO ,4. CITY CLERK \ CITY OF PALM DESERT � RECORDED IN THE OFFICE OF THE DIRECTOR OF PUBUC WORKS/CITY ENGINEER,CITY OF PALM DESERT, THIS DAY OF 200� MESA Kry VIEW DR. PROJECT DIRECTOR OF PUBLIC WORKS/CITY ENGINEER SITEORIGINAL PARCELS CITY OF PALM DESERT V. MAP ASSESSOR'S N.T.S. REF.NO. PARCEL NO. I HEREBY CERTIFY THAT THE WITHIN MAP SHOWING THE PROPOSED BOUNDARY OF THE 1 627-192-014 PRESIDENTS PLAZA III PROPERTY AND BUSINESS IMPROVEMENT DISTRICT.CITY OF 2 627-192-040 PALM DESERT,COUNTY OF RIVERSIDE.STATE OF CAUFORNIA,WAS APPROVED BY THE 627-192-020 CITY OF PALM DESERT CITY COUNCIL AT A REGULAR MEETING THEREOF,HELD ON THE -.2' 3 _DAY OF 200 ,BY ITS RESOLUTION NO. 4 627-192-021 5 627-192-022 6 627-192-023 7 627-192-024 CITY CLERK VICINITY MAP 8 627-192-033CITY OF PALM DESERT 9 627-192-00909 FILED THIS DAY OF ,200_ AT THE HOUR OF 10 627-192-039 O'CLOCK .M.,IN BOOK OF MAPS OF ASSESSMENT 11 627-192-0,36 AND COMMUNITY FACILITIES DISTRICTS AT PAGE(S) AND AS INSTRUMENT NO. 12 627-192-038 IN THE OFFICE OF THE COUNTY RECORDER OF THE COUNTY OF RIVERSIDE, 13 627-192-035 STATE OF CALIFORNIA. 14 627-192-034 15 627-192-037 FEE: ____ INST.NO.: 16 627-192-036 GARY L.ORSO ASSESSOR.CLERK-COUNTY RECORDER 17 627-192-042(Portion) BY DEPUTY, COUNTY RECORDER COUNTY OF RIVERSIDE THE LINES AND DIMENSIONS OF EACH LOT OR PARCEL SHOWN ON THIS DIAGRAM SHALL BE THOSE 0 LINES AND DIMENSIONS AS SHOWN ON THE RIVERSIDE COUNTY ASSESSOR MAPS FOR THOSE PARCELS LISTED. THE RIVERSIDE COUNTY ASSESSOR'S MAPS SHALL GOVERN FOR ALL DETAILS CONCERNING THE LINES AND DIMENSIONS OF SUCH LOTS OR PARCELS. • ;f4. MuniFinancial PROPOSED BOUNDARY MAP OF A WILLDAN COMPANY '�' 28765 Single Oak Drive PRESIDENT'S PLAZA III PROPERTY AND BUSINESS Suite 200 IMPROVEMENT DISTRICT Temecula, California 92590-3881 Phone (909) 899-3990 Fax (909) 899-3480 CITY OF PALM DESERT Christopher R. Wner: COUNTY OF RIVERSIDE R.C.E. M50558 STATE OF CALIFORNIA 1210023-0000-12 (01-025) APRIL 2001 . SHEET 2 OF 2 STATE HWY 111 ti mil- PALM DESERT DR. i 57 1 N-1 3ci1� O D 0CD O m _A f O C_14, -13 ,_ � 00 z 16 15 I \__- EL PASEO / /7/ LEGEND imimi PROPOSED DISTRICT BOUNDARY /� i Oj MAP REFERENCE NUMBER N' WO MuniFinancial PROPOSED BOUNDARY MAP OF ''/..� A WILLDAN COMPANY °� A2 WI65 Single Oak Drive PRESIDENT'S PLAZA III PROPERTY AND BUSINESS Suite 200 IMPROVEMENT DISTRICT Temecula. California 92590-3661 Phone (909) 699-3990 Fax (909) 699-3460 CITY OF PALM DESERT 80 40' 0' MU' --le COUNTY OF RIVERSIDE 50ALL . NO. STATE OF CALIFORNIA 1210023-0000-12 (01-025) APRIL 2001 x . President's Plaza III Property 3usiness Improvement District Managemen rict Plan, City of Palm Desert Fiscal Year 2001/02 APPENDIX B - DISTRICT ASSESSMENT ROLL Parcel identification, for each lot or parcel within the District, shall be the parcel as shown on the CountyAssessor's Mapfor theyear in which this Report is prepared. P A listing of parcels assessed within this District, alongwith the assessment amounts, is included on the following page. MuniFinancial Page 16 r a President's Plaza III Property Business Improvement District Managemen trict Plan, City of Palm Desert Fiscal Year 2001/02 Table 2. President's Plaza III PBID Proposed Levy Information 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 0.060 $ 659.32 627-192-009 73211 US Highway 111 Darmon Real Estate Investment Inc 10,933 0.060 655.30 627-192-014 73100 El Paseo El Paseo Collection North 33,940 0.060 2,034.28 627-192-020 73160 El Paseo Rural Stores Inc 11,980 0.060 718.06 627-192-021 73170 El Paseo Linder David&Barbara 11,958 0.060 716.74 627-192-022 73180 El Paseo W Ray Henderson Md Inc 11,936 0.060 715.42 627-192-023 73190 El Paseo Lyons Gary W 11,814 0.060 708.10 627-192-024 73200 El Paseo Karno Norton S 35,741 0.060 2,142.22 627-192-033 73241 US Highway 111 Center Associates 43,560 0.060 2,610.88 627-192-034 73101 US Highway 111 Just Llc 45,738 0.060 2,741.42 627-192-035 73125 US Highway 111 Brown Chantal Et Al 46,173 0.060 2,767.50 627-192-036 73040 El Paseo Cotter James F 17,424 0.060 1,044.36 627-192-037 73080 El Paseo El Paseo Collection North 34,848 0.060 2,088.70 627-192-038 73155 US Highway 111 Fairfield Home Inc 44,431 0.060 2,663.08 627-192-039 73195 US Highway 111 Darmon Real Estate Investment Inc 21,932 0.060 1,314.54 627-192-040 73130 El Paseo Langman David Langman Airline 60,548 0.060 3,629.10 Total 453,956 $ 27,209 Sources:County of Riverside Assessor's Office;MuniFinancial. MuniFinancial Page 17 L .z I _ r z,e �.,� i R3Z6 l Jlk .4 7J4]2 i .... 1 � xYSLSt J It k...... -- °' C—L=7 C==J ram: Min .11 MI ,IMt x�% 1 1 40' 0 40' 80' 120' ,Alt 4 in No um =MI 111111111111•MININ 1, '` pe SCALE, 1' = 40' 1 , .._‘ s' ..... I tl 1 11 1 i( I tl NB I L Fs' SLANT LEGEND sa = 4 : s,NICAL NAME COMMON NAME SIZE REMARKS + i I r Ih 23.3.18 ,stenphylla Shoestring Acacia 24"Box _.. 0. i ; _ _ _ 14 •1 Y willardiana Palo Blanco 24"Box I �:ill`.- /illl`" :III`.- I f.iv ilit■ � .iasissoo Rosewood340. 24"Box bI �-- 1 1 a chinensis Chinese Pistache 24"Box I � lI��r.'s C. Thornless' Chilean Mesquite 24"Box Multi-trunk I I r 1 j 1 �� � .,, qa bpi Tipu Tree 24"Box V s s(� T i ngtonia robusta Mexican Fan Palm Existing On-site g I 1LL1Wj I 1 zaas.) to be relocated o° /j, 24.s] �o fi �]+]a 1.Lae x 2 43 x r- N7ky OBSCURED AREA By ADD x1y t 1 r �l HH! Warner • /a MI. ONION,